KMC Properties (KMCP) Q2 2024 earnings summary

Executive summary

• Logistea AB acquired all KMC Properties operations, forming a leading Nordic logistics and industrial real estate company with a combined property value of SEK 13.2 billion and 1.4 million sqm lettable area.

• KMC Properties ASA will remain listed on the Oslo Stock Exchange and pursue new opportunities with a different profile.

Financial highlights

• Q2 2024 rental income rose 19% year-over-year to NOK 123.3 million; H1 2024 rental income up 20% to NOK 238.2 million.

• Net operating income for Q2 2024 was NOK 121.9 million, up from NOK 102.6 million in Q2 2023.

• Net profit before tax for Q2 2024 was NOK 104.2 million (Q2 2023: NOK 6.1 million); H1 2024 net profit before tax was NOK 170.8 million (H1 2023: NOK 48.3 million).

• Net profit after tax for Q2 2024 was NOK 53.9 million (Q2 2023: NOK 6.4 million); H1 2024 net profit after tax was NOK 135.2 million (H1 2023: NOK 31.2 million).

• Portfolio value increased to NOK 6.9 billion at 30 June 2024, up 12.9% from year-end 2023.

Outlook and guidance

• Following the Logistea transaction, KMC Properties ASA will focus on new business opportunities and maintain its Oslo listing.

• The combined Logistea-KMC entity targets long-term growth, financial stability, and sustainability, with a net LTV below 50% and WAULT exceeding 10 years.