Logistea (LOGI) Q2 2024 earnings summary

Executive summary

• Logistea and KMC Properties merged to form a leading Nordic logistics, warehouse, and industrial property company with 145 properties and SEK 13.2bn total property value.

• The combined entity reported a 97% occupancy rate, SEK 945m rental value, SEK 896m annualised NOI, and a WAULT of 9.8 years.

• H1 2024 income rose 17% to SEK 221 million, NOI increased 20% to SEK 166 million, and profit from property management grew 48% to SEK 77 million, excluding merger transaction costs.

• Profit before tax surged to SEK 202 million, mainly due to SEK 121 million in property value gains.

• The merger completed in July, creating a top Nordic real estate company in warehousing, logistics, and light industry.

Financial highlights

• Q2 2024 rental income was SEK 221 million (+17% YoY), with NOI at SEK 166 million (+20% YoY).

• EPRA NRV per share at SEK 14.0; property value at SEK 6,259 million as of June 2024.

• Economic occupancy rate stable at 96.2%; loan-to-value ratio improved to 44.1%; equity ratio at 48.0%.

• Unrealised property value change in Q2 was SEK 121 million, with a 6.6% valuation yield.

• Earnings per share for Q2: SEK 0.1; NAV per share: SEK 14.0 (up from SEK 13.2 at year-end).

Outlook and guidance

• The combined company targets SEK 15 billion in property value by end of 2024.

• SEK 14 million in annual operational synergies expected from the KMC integration, with further financing synergies to be quantified.

• Management focuses on optimizing the loan portfolio and leveraging increased scale for improved financing conditions.