Ovaro Kiinteistösijoitus (OVARO) Q2 2024 earnings summary

Executive summary

• Q2 2024 delivered a positive result of €695k, significantly lower than Q2 2023 (€3.57M), and H1 2024 net profit was €755k, down from €3.4m year-over-year.

• Revenue increased 16.1% year-over-year to €1.64M for Q2 and 2.0% to €2.88m for H1 2024, driven by new property acquisitions and index adjustments.

• Strategic shift continues from legacy residential assets to growth center investments, with over €12m invested in H1 2024.

• Major acquisition and resale of Jyväskylä's Forum shopping center completed, generating a €1m profit.

• Full acquisition of Jyväskylän Kukkulan Kehitys Oy supports a 15-year project pipeline and focus on project development, especially in Jyväskylä's Kukkula area.

Financial highlights

• Q2 2024 net profit was €695k, down 80.6% from Q2 2023; H1 net profit was €755k, down 77.6% year-over-year.

• Revenue for Q2 2024 was €1.64M (+16.1% y/y); H1 2024 revenue was €2.88m (+2.0% y/y).

• Cash position at €5.6M at period end, down from €8.7M at year-end 2023.

• Equity ratio at 55%, down from 72.6% at year-end 2023, with loan-to-value rising to 33.2%.

• EPRA NAV per share at €5.22, slightly down from €5.31 at year-end 2023.

Outlook and guidance

• Guidance for 2024 reiterated: full-year profit expected to exceed 2023 (€2.59m).

• Strategic focus on growth centers and project development, especially in Jyväskylän Kukkula area.

• Market recovery in new housing starts expected to extend into 2025.