Platzer Fastigheter (PLAZ) Q4 2024 earnings summary

Executive summary

• Operating profit increased 17% to SEK 714m (SEK 5.96/share) for 2024, with rental income up 15% to SEK 1,670m and operating surplus up 16% to SEK 1,314m.

• Net letting for the year was SEK -37m, mainly due to major lease terminations, but Q4 saw a return to positive net letting and the highest new lettings volume of the year.

• The Board proposes a dividend of SEK 2.10 per share, up from SEK 2.00, to be paid in two installments.

• NCR confirmed BBB- rating, upgraded outlook to stable, and raised unsecured issue rating to BBB-.

• Property portfolio expanded to 86 properties valued at SEK 30,372m, driven by the SEK 1,780m Mimo acquisition and project completions.

Financial highlights

• Q4 rental income increased 14% to SEK 443m; operating surplus up 7% to SEK 340m; income from property management up 15% to SEK 188m.

• Full-year profit was SEK 355m, reversing a SEK -943m loss in 2023, despite a SEK -215m negative property revaluation.

• Surplus ratio for 2024 was 79% (up from 78%), and economic occupancy rate was 93% (up from 92%).

• Net interest-bearing debt/EBITDA at 12.1; loan-to-value ratio 52% (properties), 49% (total assets); interest coverage ratio at 2.3x.

• Average interest rate 3.53%; average debt maturity 2.0 years; interest maturity 2.9 years.

Outlook and guidance

• Market in Gothenburg is showing signs of recovery, with increased industrial activity and stable office rents; management expects gradual improvement in 2025.

• New report warns of potential office shortage in Gothenburg within 10 years, requiring 800,000 sqm of new office space.

• Focus remains on customer relations, cash flow, sustainability, and strategic portfolio management, with new projects planned as market allows.