Neobo Fastigheter (NEOBO) Q4 2024 earnings summary

Executive summary

• Achieved compliance with Nasdaq Stockholm listing requirements and inclusion in the EPRA index, supporting credibility and visibility.

• Net operating income and profit from property management increased year-over-year, with a positive outlook for continued growth.

• All 2024 sustainability targets were met, including climate risk surveys, code of conduct implementations, and energy and climate roadmap completion.

• Focused on affordable housing and sustainability, meeting all internal sustainability targets for 2024.

• Q4 profit from property management increased by 50% year-over-year.

Financial highlights

• Rental income increased to SEK 908 million, with like-for-like rental income up 6% year-over-year.

• Net operating income rose to SEK 473 million, a 12% like-for-like increase year-over-year.

• Profit from property management was SEK 152 million, up 3% year-over-year and up 50% in Q4.

• Unrealized property value changes were negative SEK 301 million, reflecting a 2.2% portfolio value decrease.

• Central administration costs declined to SEK 75 million; excluding one-offs, costs fell by SEK 11 million.

Outlook and guidance

• Positive outlook for continued NOI and profit growth, with strong prospects for rental growth in coming years.

• Remaining rent negotiations expected to conclude in spring, with completed negotiations reflecting a 4.9% average increase.

• Management expects improved liquidity in the Swedish transaction market and plans to accelerate portfolio optimization and growth.

• Two-year agreements in the market indicate 3.5%-4.5% rent increases for 2026, depending on location and property type.

• No significant weather-related cost carryover expected in Q1.