Stenhus Fastigheter (SFAST) Q4 2024 earnings summary

Executive summary

• Stenhus Fastigheter reported stable operational performance for 2024, with a focus on portfolio optimization and sustainability initiatives.

• The company completed a market listing upgrade to Nasdaq Stockholm Midcap in December 2024.

• The board proposes a dividend of 0.20 SEK per share, split into two payments in 2025.

• Portfolio adjustments included significant property sales and selective acquisitions, reducing the number of properties from 161 to 135.

• Credit rating was affirmed at BB with an improved outlook from negative to stable.

Financial highlights

• Full-year rental income was 1,011.8 MSEK, slightly down from 1,019.0 MSEK year-over-year.

• Operating net (driftnetto) reached 783.5 MSEK, compared to 790.2 MSEK in 2023.

• Management result (förvaltningsresultat) was 329.6 MSEK (0.89 SEK/share after dilution), down from 359.2 MSEK (0.97 SEK/share) year-over-year.

• Net income after tax was 56.0 MSEK, a turnaround from -375.8 MSEK in 2023.

• Property value changes were -112.7 MSEK, with unrealized changes at -75.3 MSEK (-0.6% of property value).

• Cash flow from operations was 254.9 MSEK, with year-end cash at 224.9 MSEK.

Outlook and guidance

• Updated operational and financial targets in January 2025, including a 12% annual growth target for management result over a cycle.

• Long-term goals: ROE and EPS of 12% per year, Net LTV below 55%, LTV below 60%, interest coverage above 2.25x, and equity ratio above 35%.

• Dividend policy aims for at least 30% of management result to be distributed.