Pandox (PNDX) Q4 2024 earnings summary

Executive summary

• 2024 marked a strong year with profitable growth, driven by strategic acquisitions and investments, resulting in improved earnings quality and portfolio expansion.

• The company operates exclusively in hotel properties across Europe, focusing on high-quality assets and active ownership.

• Five hotel properties worth SEK 4.5 billion (MSEK 4,500) were acquired in 2024, expected to add SEK 350 million in annual net operating income.

• The portfolio now includes 161 hotels (excluding Tromsø), valued at SEK 76 billion, with an average yield of 6.29%.

• Strong performance in both business segments, supported by resilient leisure and increased business travel.

Financial highlights

• Q4 2024 revenues increased by 3% year-over-year (2% LFL), and net operating income by 8% (flat LFL), driven by completed investments.

• Full-year 2024 revenues rose 4% (4% LFL) and net operating income 7% (4% LFL) year-over-year.

• Cash earnings per share grew 23% in Q4 and 10% for the full year.

• EBITDA for Q4 2024 increased 8% to MSEK 1,016; profit before value changes up 12%.

• The board proposes a dividend of SEK 4.25 per share, up 6% from last year.

Outlook and guidance

• RevPAR growth for 2025 is expected at 2–3%, with additional upside from acquisitions and investments.

• Q1 2025 is anticipated to be seasonally weaker, but with a positive Easter effect and contributions from new assets.

• Tax rate guidance for 2025 is 15–16% of pre-tax profit before value changes.