John Mattson (JOMA) Q3 2024 earnings summary

Executive summary

• Income from property management grew 43% year-over-year to SEK 147.0 million, driven by efficiency improvements and lower borrowings.

• Rental revenues increased 3.5% year-over-year to SEK 480.2 million for Jan–Sep 2024, with net operating income up 4.0% to SEK 349.3 million.

• Property value at period-end was SEK 13,940.6 million, with 4,324 apartments and an economic occupancy rate of 97.4%.

• Major upgrade project for over 280 apartments in Rotebro, Sollentuna, starting in 2025.

• Agreements secured for cost-effective district heating and new land allocation for 50 apartments in Örnsberg, Stockholm.

Financial highlights

• Q3 2024 rental revenues were SEK 161.4 million, up 4.4% year-over-year; net operating income was SEK 124.7 million, up 1.8%.

• Income from property management for Q3 was SEK 59.2 million, up from SEK 44.2 million in Q3 2023.

• Profit for the period was SEK 141.9 million, compared to a loss of SEK 338.2 million in Q3 2023.

• Changes in property values contributed SEK 296.0 million for Jan–Sep, compared to a loss of SEK 986.7 million last year.

• Investments totaled SEK 167.9 million for Jan–Sep, with no property acquisitions.

Outlook and guidance

• Upgrades and energy optimization in the existing portfolio are prioritized over new developments or acquisitions.

• No new production projects will start before 2026; focus is on increasing the development rights portfolio.

• Rent negotiations for 2025 are ongoing, with expectations of historically high rent adjustments.

• Market sentiment has improved, but geopolitical and macroeconomic uncertainties persist.