Studentbostäder i Norden (STUDBO) Q1 2025 earnings summary

Executive summary

• Revenue increased by 10% to 124 MSEK compared to the same quarter last year, with operating surplus up 13% to 72 MSEK and a surplus ratio of 58%.

• Net profit for the quarter was 92 MSEK, a significant turnaround from -88 MSEK last year, driven by positive property revaluations and a favorable tax ruling.

• The company completed a rights issue of 145 MSEK after the quarter, strengthening liquidity and reducing leverage.

• Occupancy improved to 95% from 89% year-over-year, reflecting strong demand and effective marketing.

Financial highlights

• Operating profit (forvaltningsresultat) was 14 MSEK, up from -5 MSEK year-over-year.

• Property revaluations contributed 78 MSEK, with 45 MSEK from a tax dispute win.

• Earnings per share were 0.16 SEK, up from -0.15 SEK last year.

• Long-term net asset value per share rose to 3.96 SEK from 3.86 SEK.

• Return on equity reached 17.3% versus -17.2% last year.

Outlook and guidance

• Management expects continued growth in revenue and earnings, supported by a strong cash position and robust demand for student housing.

• The company aims to start construction of the Snillet 3 project in Lund during 2025.

• Financial targets include at least 10% annual growth in net asset value per share, a long-term interest coverage ratio of at least 1.75x, and a loan-to-value ratio not exceeding 60%.