Sagax (SAGA-A) Q3 2024 earnings summary

Executive summary

• Rental revenue rose 16% to SEK 3,678 M for Jan–Sep 2024, driven by acquisitions and rent indexation.

• Profit from property management attributable to shareholders increased 8% to SEK 3,217 M.

• Profit after tax surged to SEK 4,256 M from SEK 420 M, mainly due to positive property and financial instrument revaluations.

• Net investments in properties totaled SEK 5,842 M, with major acquisitions in France, Spain, Finland, and Benelux.

• Economic occupancy rate remained high at 96% with a diversified tenant base and lease structure.

Financial highlights

• Rental revenue for Q3 2024 increased 16% year-over-year to SEK 1,290 M.

• Profit from property management per share after dilution was SEK 8.94 for Jan–Sep 2024, up from SEK 8.64.

• Property revaluation contributed SEK 456 M to profit, reversing a negative SEK -1,680 M last year.

• Revaluation of financial instruments added SEK 1,074 M, mainly from NP3 Fastigheter AB reclassification.

• Cash flow from operating activities before working capital changes was SEK 2,704 M.

Outlook and guidance

• 2024 profit from property management is forecasted at SEK 4,300 M, unchanged from previous guidance.

• Current earnings capacity as of 1 October 2024 shows profit from property management at SEK 4,122 M.