Stenhus Fastigheter (SFAST) Q3 2024 earnings summary

Executive summary

• Operates 134 properties valued at SEK 13.2 billion, focusing on metropolitan and growth regions in Sweden.

• Portfolio diversified across public, grocery-anchored, light industrial/logistics, offices, and non-speculative development projects.

• Vision to become a leading Swedish real estate company within five years, emphasizing sustainable growth and long-term leases.

• Significant property acquisitions and divestments, including new share and bond issues.

• Credit rating BB confirmed with outlook improved from negative to stable.

Financial highlights

• Rental income for Q3 2024 was SEK 241.1 million, down from SEK 246.9 million in Q3 2023; January–September rental income was SEK 766.9 million.

• Net operating income for Q3 2024 was SEK 194.8 million; January–September net operating income was SEK 593.2 million.

• Profit for the period attributable to shareholders was a loss of SEK 14.1 million for Q3 2024; after-tax result for January–September was -54.3 million, an improvement from -323.9 million in 2023.

• Economic occupancy rate at 93.0% as of September 30, 2024.

• EPRA NRV per share at SEK 16.35.

Outlook and guidance

• No dividend planned for the coming year; cash flow to be reinvested in acquisitions and project development.

• Targets property value above SEK 20 billion before 2025, equity ratio above 35%, LTV below 60%, net LTV below 55%, and interest coverage ratio above 2.25x.

• Current net LTV at 53.3%, equity ratio at 42.4%, and ICR at 1.77x.