Magnolia Bostad (MAG) Q3 2024 earnings summary

Executive summary

• Completed 2,500 residential units YTD and expect a record 3,600 completions in 2024, focusing on quality and sustainability.

• Strengthened liquidity by selling Hantverkshuset in Nacka; continued project portfolio streamlining.

• Improved macroeconomic conditions and Riksbank rate cuts support a more stable housing market and better financing outlook.

• Building rights portfolio includes 7,000 rights with zoning plans in force, mainly in Stockholm, Göteborg, and Malmö.

• No significant events occurred after the end of the period.

Financial highlights

• Net sales for Jan–Sep 2024: SEK 1,479m (234); Q3: SEK 148m (76).

• Operating loss Jan–Sep: SEK 647m (-416); Q3: SEK 99m (-129).

• Loss after tax Jan–Sep: SEK 856m (-617); Q3: SEK 165m (-195).

• Equity/assets ratio at 26.8% (31.2), down due to negative results.

• Cash and cash equivalents at period end: SEK 98m (331).

Outlook and guidance

• Expect record completions in 2024 and readiness to start new projects in coming quarters.

• Improved investor sentiment and transaction activity signal potential recovery in housing production, especially in metropolitan regions.