K-Fast (KFAST) Q2 2024 earnings summary

Executive summary

• Launched a new 2024–2028 business plan targeting Construction and Property Management, aiming for 30–50% annual divestment of new construction to support expansion and self-financing.

• Sold Danish property portfolio (311 units) for SEK 1,087m, retaining a 20% stake, with transfer after the reporting period.

• K-Prefab secured its largest contract to date, a SEK 200m order for a structural frame project in Stockholm, with delivery in 2025.

• Appointed Niclas Bagler as Deputy CEO, responsible for Construction.

• Period profit improved to SEK 87.9m from SEK -121.3m year-over-year.

Financial highlights

• Group revenues for Jan–Jun 2024: SEK 530.7m (599.8), with period profit SEK 87.9m (-121.3), and quarterly profit SEK 52.5m (74.5).

• Long-term net asset value per share: SEK 24.61.

• Property management result per share: SEK 0.25; Construction segment result per share: SEK 0.70.

• Property management revenues: SEK 302.6m (+31% YoY); Construction revenues: SEK 869.8m (-34% YoY).

• Investment properties valued at SEK 15,748.0m, up 6% from December 2023.

Outlook and guidance

• Ongoing sales processes for commercial and residential properties in Sweden.

• Vacancy rates expected to normalize by year-end 2024/2025, with improved occupancy and profitability as recent completions are absorbed.

• Prefab segment anticipates continued order growth and operational scaling, with a broader product mix.

• Swedish housing demand remains strong, especially in growth regions; interest rate cuts may support market conditions.