Real Fastigheter (REAL) Q2 2024 earnings summary

Executive summary

• Net revenue for H1 2024 increased by 10% to SEK 85.3m compared to H1 2023, with operating profit up 9% to SEK 35.9m and a stable property portfolio value of SEK 1,290.6m.

• Focus remains on logistics and industrial properties in growth regions, with ongoing energy efficiency projects and a new build in Nättraby nearing completion.

• Economic occupancy rate remains just under 90%, reflecting strong tenant retention and demand for space.

Financial highlights

• Q2 2024 net revenue rose 8% year-over-year to SEK 41.9m; H1 net revenue up 10% to SEK 85.3m.

• Operating profit for Q2 was SEK 21.0m (Q2 2023: SEK 20.1m); H1 operating profit SEK 35.9m (H1 2023: SEK 33.0m).

• Net income for Q2 was SEK 6.9m (Q2 2023: SEK 8.8m); H1 net income SEK 10.9m (H1 2023: SEK 23.4m).

• No property acquisitions or unrealized value changes reported in H1 2024.

• Cash flow from operations for H1 was SEK 0.3m (H1 2023: SEK 8.6m); cash and equivalents at period end SEK 13.5m.

Outlook and guidance

• Management expects continued positive development, supported by strong results, stable cash flow, and robust demand for premises.

• The company remains confident in its strategy and ability to deliver value for shareholders and tenants for the remainder of 2024.