Nivika Fastigheter (NIVI) Q3 2024 earnings summary

Executive summary

• Achieved strong Q3 with rental income rising 15% to 172 MSEK and net operating income up 19% to 119 MSEK year-over-year.

• Economic occupancy remained high at 96% overall, with 95% for commercial and 98% for residential properties.

• Completed major residential and commercial projects, adding significant annual rental value and acquiring four commercial properties while divesting non-core assets.

• Profit from property management grew to 44 MSEK in Q3, up 91% year-over-year.

• Property value at quarter-end was 11,077 MSEK, up from 10,647 MSEK a year ago.

Financial highlights

• Earnings per share were 0.55 SEK in Q3 and 1.52 SEK for the period, compared to 0.27 SEK and -2.11 SEK last year.

• Net loan-to-value ratio improved to 45% from 54% year-over-year.

• Interest coverage ratio (R12) at 1.8x, up from 1.5x, approaching the target of 2.0x.

• Equity ratio stood at 48.2% at period end.

• Cash and cash equivalents were 218 MSEK, up from 131 MSEK last year.

Outlook and guidance

• Targeting property value of 15,000 MSEK by end of 2028.

• Net loan-to-value target revised to ≤55% for long-term flexibility.

• Aims for commercial properties to comprise two-thirds of portfolio value.

• Sustainability goal to reduce Scope 1 and 2 emissions by 25% by end of 2025.

• Several projects underway, including Stationsallén in Gislaved, with major lease agreements and phased completions through 2026.