Neobo Fastigheter (NEOBO) Q2 2024 earnings summary

Executive summary

• Rental income increased 7.3% like-for-like to SEK 454m for January–June 2024, driven by rent hikes and reduced vacancies.

• Net operating income rose to SEK 229m (+3.4% like-for-like).

• Profit from property management was SEK 68m, down from SEK 75m year-over-year.

• Portfolio is 94% residential, with 8,300 apartments and a property value of SEK 13.7bn.

• Total occupancy rate improved by 1.3 percentage points to 95.0% over the last twelve months.

Financial highlights

• Rental income for H1 2024 increased by SEK 20m to SEK 454m year-over-year.

• Net operating income reached SEK 229m; like-for-like NOI up 3.4%.

• Profit from property management for Jan–Jun was SEK 68m (75), with Q2 at SEK 58m (46).

• Unrealized value changes in properties were negative SEK 216m to SEK 260m, a -1.5% change.

• Property costs rose by SEK 16m to SEK 224m, mainly due to higher operational and administrative expenses.

Outlook and guidance

• Optimism for H2 2024, expecting increased activity as interest rates and financing stabilize.

• Full-year maintenance costs expected to be roughly double the half-year figure.

• Full effect of 5.1% average rent increases in residential portfolio expected in Q3.

• Investment pace in value-creating projects to be maintained in H2, with focus on renovations and sustainability.

• Main market listing planned for autumn 2024.