Stendörren Fastigheter (STEF) Q2 2024 earnings summary

Executive summary

• Focus on logistics, warehouse, and light industrial properties, mainly in Greater Stockholm and Mälardalen, with a diversified tenant base and stable cash flow.

• Property portfolio valued at SEK 12.6bn as of June 30, 2024, with 151 properties and 808,000 sqm lettable area.

• Rental income and net operating income both increased by 5% year-over-year for January–June 2024, with underlying growth of 7% for the comparable portfolio.

• Profit for the period was SEK 155 million, a significant improvement from SEK -1 million in the prior year.

• Sustainability is a core strategy, targeting net zero carbon emissions by 2040 and significant reductions in energy intensity and CO2 emissions.

Financial highlights

• Net operating income (NOI) increased 7% year-over-year in the comparable portfolio.

• NOI yield at 6.5% (12-month average, excluding projects and land).

• Economic occupancy rate at 93% as of June 30, 2024.

• Assessed annual rental income of SEK 883m and NOI of SEK 696m as of July 1, 2024.

• Realized and unrealized property value changes: SEK 47 million (SEK -157 million prior year).

Outlook and guidance

• Ongoing and recently completed projects are expected to add SEK 70 million in NOI upon letting and completion.

• Focus on capitalizing embedded rental growth, operational improvements, and developing 640,000 sqm of building rights.

• Continued expansion in Greater Stockholm and Mälardalen, with selective acquisitions to obtain critical mass in new markets.

• Dividend policy prioritizes reinvestment for growth, with low or zero dividends expected in coming years.