Nivika Fastigheter (NIVI) Q4 2024 earnings summary

Executive summary

• Rental income and net operating income increased in Q4 2023/24, with rental income up 12% to 176 MSEK and net operating income up 10% to 134 MSEK compared to the same quarter last year.

• Full-year rental income rose 10% to 676 MSEK, and net operating income increased 16% to 481 MSEK.

• Property value reached 11,448 MSEK, up 9% year-over-year, with 61% commercial and 39% residential assets.

• Occupancy rate remained high at 96%, with 95% for commercial and 98% for residential properties.

• Completed several new leases, finished construction projects, and announced a change in fiscal year to align with the calendar year.

Financial highlights

• Q4 rental income was 176 MSEK, up 12% year-over-year; net operating income was 134 MSEK, up 10%.

• Full-year profit from property management increased 44% to 193 MSEK, with EPS at 1.45 SEK versus -4.39 SEK last year.

• Property value increased to 11,448 MSEK, with a long-term net asset value of 6,168 MSEK (64.40 SEK per share).

• Net loan-to-value improved to 46% from 50%, and interest coverage ratio increased to 1.8x from 1.6x.

• Cash and cash equivalents rose to 119 MSEK from 66 MSEK.

Outlook and guidance

• Targeting property value of 15,000 MSEK by end of 2028, with two-thirds in commercial properties.

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

• Earnings capacity for the next 12 months estimated at 240 MSEK profit from property management, with rental income of 734 MSEK.

• Focus on acquisitions, especially in light industrial properties within core geographies.

• Several ongoing and planned projects expected to add annual rental value of 35 MSEK.