Logistea (LOGI) Q4 2023 earnings summary

Executive summary

• FY 2023 income rose 44% to MSEK 371, NOI rose 48% to MSEK 276, and profit from property management (PFPM) rose 47% to MSEK 107.

• Acquisition-led portfolio growth supported positive net lettings of MSEK 9, versus MSEK -17 in 2022.

• Net profit was MSEK -9 for FY 2023; year-end property value was MSEK 5,386, economic occupancy 95.7%, WAULT 7.9 years, and net LTV 45.5%.

Financial highlights

• FY income was MSEK 371 versus MSEK 257 in 2022; like-for-like income increased 8%.

• FY NOI was MSEK 276 versus MSEK 186; like-for-like NOI increased 11%.

• FY PFPM was MSEK 107 versus MSEK 73; PFPM per share was SEK 0.64, up 10%.

• Q4 income rose 16% to MSEK 93, NOI rose 10% to MSEK 66, and PFPM rose 19% to MSEK 25; Q4 like-for-like NOI increased 11.4%.

• FY profit before tax was MSEK 8 versus MSEK 420; net profit was MSEK -9 versus MSEK 318.

Outlook and guidance

• Targets: PFPM per share to grow at least 10% annually on average over five years; interest cover above 1.8x; long-term LTV no higher than 60%.

• 12-month earnings capacity indicated MSEK 183 PFPM as of 16 Feb 2024; this is not a forecast and excludes future changes in rents, vacancies and interest rates.

• A 6.5% rent index adjustment took effect 1 Jan 2024; earnings from three acquisitions were expected to be recognized fully over the next two quarters.

• No FY 2023 dividend was proposed; long-term targets include 12% average annual NAV per share growth over five years and property value above SEK 15bn by end-2024.

• Sustainability targets include net zero Scope 1 and 2 emissions by end-2028, battery capacity of at least 30 MW by end-2025, and 1 MWp of additional solar capacity annually.