Stendörren Fastigheter (STEF) Q4 2024 earnings summary

Executive summary

• Property value reached SEK 14.3bn as of December 31, 2024, with 160 properties and 857,000 sqm lettable area.

• Rental income rose 7% year-over-year to SEK 902 million, with net operating income up 7% to SEK 718 million.

• NOI increased 11% in Q4 2024 vs Q4 2023 and 7% year-over-year, driven by acquisitions and project completions.

• Profit for the period reached SEK 327 million, reversing a loss of SEK -246 million in 2023.

• Net letting for the year totaled SEK 29 million, with Q4 net letting at a record SEK 24 million.

Financial highlights

• NOI yield at 6.4% (excluding projects and land, 12-month average).

• Economic occupancy rate at 92% as of December 31, 2024.

• Surplus ratio at 79% (12-month average).

• Equity ratio at 35–37% and interest coverage ratio at 2.0–3.3x in Q4 2024.

• NOI yield: 5.5% (up from 5.4% year-over-year).

Outlook and guidance

• Ongoing and recently completed projects expected to add approximately SEK 54–57m in NOI upon leasing and completion.

• Management expects continued high and profitable growth in 2025, supported by strong demand and an attractive acquisition pipeline.

• Several projects are scheduled for completion in 2025, with favorable conditions for new project starts.

• The company targets long-term annual construction of 25,000–50,000 sqm.

• Substantial growth potential with 637,000 sqm of building rights, mainly in the Stockholm region.