Nivika Fastigheter (NIVI) Q5 2024 summary

Executive summary

• Rental income increased by 20% year-over-year to 735 MSEK, with Q5 rental income up 10% to 178 MSEK.

• Net operating income rose 26% year-over-year to 525 MSEK, and profit from property management increased 58% to 211 MSEK.

• Property portfolio expanded to 199 properties valued at 11.5 billion SEK, with 613,000 sq. m lettable area and 96% occupancy.

• Financial year changed to calendar year, extending the current period to 16 months for improved comparability.

• Strategic acquisitions and completed projects, including sheltered housing in Jönköping, drove growth.

Financial highlights

• Earnings per share improved to 1.29 SEK from -4.39 SEK year-over-year; Q5 EPS was 0.06 SEK (-2.00 SEK previous year).

• Net loan-to-value ratio decreased to 46% (target ≤55%), and interest coverage ratio improved to 1.9x (target ≥2.0x).

• Average interest rate on loans fell to 4.5% (previously 5.1–5.3%).

• Cash and cash equivalents increased to 102 MSEK.

• Surplus ratio was 71% for the period, 78% in Q5.

Outlook and guidance

• Targeting property value of 15 billion SEK and net loan-to-value below 55% by end of 2028.

• Management expects further earnings and EPS growth as interest rates decline and cost control remains strong.

• Ongoing and future projects expected to add 38 MSEK in annual rental value.

• Sustainability goal to reduce Scope 1 & 2 emissions by 25% by end of 2025; target already achieved.

• Amortization levels renegotiated, improving cash flow by 20 MSEK/year.