Krona Public Real Estate (KRONA) Q3 2024 earnings summary

Executive summary

• Rental income for Q3 2024 was SEK 17,939k, down from SEK 18,719k in Q3 2023; for Jan–Sep 2024, SEK 53,413k, up from SEK 52,853k year-over-year.

• Net operating income for Q3 2024 was SEK 16,874k (Q3 2023: SEK 16,762k); Jan–Sep 2024: SEK 50,129k (Jan–Sep 2023: SEK 48,715k).

• Net profit for Q3 2024 was SEK 10,038k (Q3 2023: SEK 4,967k); Jan–Sep 2024: SEK 27,648k (Jan–Sep 2023: SEK -16,914k), mainly due to unrealized property value changes.

• The property portfolio remains fully leased, with stable operations and no employees; management is outsourced.

Financial highlights

• Earnings per share for Q3 2024: SEK 2.09 (Q3 2023: SEK 1.11); Jan–Sep 2024: SEK 6.02 (Jan–Sep 2023: negative).

• Return on equity for Q3 2024: 10.25% (Q3 2023: 4.77%); Jan–Sep 2024: 9.67%.

• Loan-to-value ratio at 71.3% (Q3 2023: 69.8%); interest coverage ratio at 2.52x for Jan–Sep 2024.

• Net asset value (NRV) per share: SEK 73.17 (Q3 2023: SEK 92.10).

• Cash and cash equivalents at period end: SEK 77,760k (Dec 2023: SEK 43,525k).

Outlook and guidance

• No dividend for 2024, with focus on strengthening the balance sheet due to market conditions.

• Operations expected to continue unchanged with a fully leased property portfolio.