Real Fastigheter (REAL) Q3 2024 earnings summary

Executive summary

• Net revenue for Jan–Sep 2024 increased by 5% to SEK 124.2m compared to the same period last year, with stable demand for logistics and industrial properties.

• Operating income for Jan–Sep 2024 was SEK 55.7m, down 4% year-over-year, impacted by higher property costs and customer losses.

• Property portfolio value rose to SEK 1,370.1m, supported by completed projects and positive revaluations.

• The company remains focused on logistics, warehousing, and industrial properties in growth regions, maintaining a long-term management strategy.

• Management expects future interest rate cuts to have a positive effect, with a portion of loans recently fixed at lower rates.

Financial highlights

• Net revenue for Q3 2024 was SEK 38.9m (Q3 2023: SEK 41.0m); Jan–Sep 2024: SEK 124.2m (Jan–Sep 2023: SEK 118.6m).

• Operating income for Q3 2024 was SEK 19.8m (Q3 2023: SEK 25.1m); Jan–Sep 2024: SEK 55.7m (Jan–Sep 2023: SEK 58.1m).

• Net profit for Jan–Sep 2024 was SEK 29.6m, with EPS of SEK 1.00 (Jan–Sep 2023: SEK 1.46).

• Property revaluations contributed SEK 18.7m in Q3, mainly from completed construction in Nättraby.

• Cash flow from operations for Jan–Sep 2024 was SEK 22.6m (Jan–Sep 2023: SEK 28.3m).

Outlook and guidance

• Management maintains a positive outlook for the remainder of 2024, citing strong results, stable cash flow, and robust demand for properties.

• No significant events have occurred after the reporting period.