Pandox (PNDX) Q1 2025 earnings summary

Executive summary

• Q1 2025 delivered stable results with total revenue up 1% to MSEK 1,518 and net operating income up 5% to MSEK 827 year-over-year, driven by acquisitions and strong lease performance; adjusting for one-off items, revenue growth was 4–6%.

• The leases segment showed a 6% increase in both revenue and net operating income (adjusted), while Own Operations was impacted by renovations and softer demand in Brussels.

• Portfolio consists of 162 hotel properties in 11 countries, valued at nearly SEK 74 billion, with a focus on upper-mid-market hotels and a diversified demand base.

• High business activity included acquisitions in Norway, Germany, and Sweden, such as Hotel Pullman Cologne (EUR 66 million, 6.5% yield), Elite Hotel Frost in Kiruna (SEK 347 million, expected 7% yield), and Radisson Blu Tromsø.

• New lease agreement in Brussels with Numa, reclassifying Hotel Hubert to leases.

Financial highlights

• Group revenue reached MSEK 1,518 (+1% YoY); net operating income was MSEK 827 (+5% YoY), with EBITDA at MSEK 775 (+5%).

• Cash earnings and profit before value changes rose 10%, with cash earnings per share up 4% to SEK 1.54.

• Unrealized portfolio value changes were positive at SEK 40 million; average yield remained stable at 6.28%.

• EPRA NRV per share decreased to SEK 207.55 (down 4%) due to negative currency translation effects from a stronger SEK.

• Net interest-bearing debt was MSEK 33,806; loan-to-value (LTV) at 45.7%, rising to 47.4% after April acquisitions and dividend.

Outlook and guidance

• Guidance for 2025 RevPAR growth remains at 0–4% despite macro uncertainty; no change in acquisition outlook.

• Booking situation for Q2 is stable across the portfolio, with occupancy as the main driver and positive booking trends for coming quarters.

• Expect positive contributions from recent acquisitions and ongoing investments.

• Economic activity and international travel trends are key demand factors.