Pandox (PNDX) Q3 2024 earnings summary

Executive summary

• Operates as Europe's largest listed pure hotel property owner, with a diversified portfolio of 160 properties and 35,500 rooms across 11 countries and 90 cities.

• Achieved high business tempo and growth, driven by strong leisure and business demand, with active acquisitions including three London aparthotels and DoubleTree by Hilton Edinburgh.

• Business model centers on revenue-based leases with strong operators, providing inflation protection and a yield gap over 200 basis points.

• Maintained a strong financial position, supported by a SEK 2 billion share issue in September.

• Profit for Q3 was MSEK -39, impacted by unrealised derivative losses, while nine-month profit was MSEK 1,125 (+106%).

Financial highlights

• Q3 group revenue was MSEK 1,873, down 1% year-over-year but up 5% like-for-like; net operating income was MSEK 1,159, up 1% year-over-year and 3% like-for-like.

• Cash earnings for Q3 were MSEK 582 (+4%); cash earnings per share were SEK 3.14 (+4%).

• EPRA NRV per share at SEK 209.36, up 4% annualised, adjusted for dividends and share issue.

• Average interest on debt stable at 4.1%; 69% of net debt hedged.

• Market value of properties at period end was MSEK 74,234 (+7.5% year-over-year).

Outlook and guidance

• Expects stable RevPAR growth in Q4 2024, with normal seasonality and positive contributions from recent acquisitions and openings.

• Anticipates continued RevPAR growth in 2025, though the exact level is uncertain; geopolitical risks remain a key uncertainty.

• Lower credit margins are expected to continue, improving financing conditions.