John Mattson (JOMA) Q4 2024 earnings summary

Executive summary

• Management reported a 46% year-over-year increase in profit from property management, with net income rebounding to SEK 433.5m from a loss of SEK 1,255.3m in 2023.

• Rental revenues increased 5.3% year-over-year to SEK 642.7 million, and net operating income rose 5.1% to SEK 459.7 million.

• Long-term net asset value per share increased 8.7% to SEK 94.66.

• The company emphasized successful transformation, improved macroeconomic conditions, and a strong focus on growth and sustainability.

• The Board proposes no dividend for 2024, prioritizing investment in growth and sustainability.

Financial highlights

• Property management profit rose to SEK 195.1m for 2024 from SEK 133.2m in 2023, a 46% increase.

• Economic occupancy rate reached 97.6% and surplus ratio remained stable at 71.5%.

• Net income for the year was SEK 433.5m, reversing a loss of SEK -1,255.3m in 2023.

• Average interest rate at year-end decreased to 2.8%, and the loan-to-value ratio improved to 47.6%.

• Investments totaled SEK 209.6 million, mainly in upgrades and energy efficiency, with no property acquisitions.

Outlook and guidance

• Continued focus on property optimization, energy efficiency, and apartment upgrades, with plans to upgrade about 200 apartments and start production of 250 apartments annually.

• Selective divestments and acquisitions to gradually shift towards net acquisitions.

• Plans to initiate densification projects in 2026 and reduce purchased energy by approximately 45%.

• Market conditions have stabilized, but geopolitical and inflationary risks remain.