Sagax (SAGA-A) Q2 2024 earnings summary

Executive summary

• Rental revenue rose 17% year-over-year to SEK 2,388 M for H1 2024, with profit from property management up 5% to SEK 2,056 M.

• Property revaluations and financial instrument revaluations contributed positively, resulting in profit after tax of SEK 2,058 M, a significant turnaround from a loss in the prior year.

• Economic occupancy rate remained stable at 96%, with a diversified tenant base and lease structure supporting stable cash flows.

• Investments in properties totaled SEK 1,574 M, with continued focus on warehouse and light industrial segments across multiple European markets.

Financial highlights

• H1 2024 rental revenue: SEK 2,388 M (+17% YoY); profit from property management: SEK 2,056 M (+5% YoY).

• Profit after tax: SEK 2,058 M (compared to -214 M YoY); EPS after dilution: SEK 5.71 (vs. -1.07 YoY).

• Cash flow from operating activities before working capital: SEK 1,789 M (flat YoY); net investments in properties: SEK 1,544 M.

• Property revaluation impact: SEK 202 M (vs. -1,367 M YoY); financial instruments revaluation: SEK 103 M (vs. -707 M YoY).

• Dividend per Class A and B share: SEK 3.10 (up from 2.70 YoY).

Outlook and guidance

• 2024 profit from property management forecast unchanged at SEK 4,300 M, based on current portfolio and announced transactions.