Logistea (LOGI) Q3 2024 earnings summary

Executive summary

• Completed transformative merger with KMCP, expanding the portfolio to 145 properties valued at SEK 13.1 billion and a lettable area of 1.4 million sqm, with 97.4% economic occupancy.

• Income for Jan–Sep 2024 rose 67% to SEK 465 million, driven by the acquisition of KMC Properties ASA's portfolio.

• Focus remains on logistics and light industrial assets, with strong tenant and geographic diversification.

• Triple net contracts cover 91% of leases, providing high visibility in future rental income.

• ESG initiatives advanced, including solar and battery storage projects and net zero targets.

Financial highlights

• Q3 2024 revenue reached SEK 465 million, up 67% year-over-year; net operating income was SEK 385 million, up 83%.

• Profit from property management (PFPM) was SEK 169 million excluding transaction costs, up 106% year-over-year.

• Net initial yield reached a historical high of 6.9%.

• Operating margin increased to 82% (from 78%), and adjusted operating margin to 92% (from 91%) on a 12-month basis.

• Earnings per share for Jan–Sep was SEK 0.6; net asset value per share increased to SEK 15.0.

Outlook and guidance

• Management targets over 15% average annual growth in NAV and PFPM per share over five years.

• Loan-to-value (LTV) to remain below 60% and interest coverage ratio (ICR) above 1.8x.

• Anticipates continued value-accretive growth within a prudent financial policy framework.

• Expects higher market activity and stable rental levels, with some increase in vacancy rates in select markets.

• The Board intends to prioritize growth over dividends in the coming years.