Stenhus Fastigheter (SFAST) Q2 2024 earnings summary

Executive summary

• Focus on sustainable growth, strong operating cash flows, and long lease durations, aiming to become a leading Swedish real estate company within five years.

• Portfolio consists of 153 properties valued at SEK 13.6bn, with a clear geographic focus on metropolitan and growth areas.

• Hyresintäkter increased to SEK 257.7m in Q2 and SEK 525.8m for H1 2024, with 94% indexed to CPI.

• Business model emphasizes in-house management, long-term leases, and a diversified property mix for stability and growth.

• Operating cash flow was SEK 124.6m, with cash and cash equivalents at SEK 293.8m at period end.

Financial highlights

• Rental income for Q2 2024 was SEK 257.7m (239.2m in Q2 2023); EBITDA was SEK 167m (155m in Q2 2023).

• Net income for Q2 2024 was SEK -12.5m, compared to SEK -66.3m in Q2 2023.

• Gross profit for Q2 2024 reached SEK 203.9m, up from SEK 184.7m year-over-year.

• Change in value of properties was negative SEK -62.4m in Q2 2024, a significant improvement from SEK -182.9m in Q2 2023.

• Earnings capacity as of Q2 2024: rental income SEK 992m, NOI SEK 786m, profit from property management SEK 373m.

Outlook and guidance

• Targeting property value above SEK 20bn before 2025 and 12% ROE over a business cycle.

• Aims to maintain net LTV below 55% (currently 54.2%) and equity ratio above 35% (currently 41.4%).

• Interest coverage ratio target above 2.25x, currently at 1.82x.

• Cash flow is reinvested in the business, with no dividend planned for the coming year.