Studentbostäder i Norden (STUDBO) Q2 2024 earnings summary

Executive summary

• Revenue increased 16% to 221 MSEK for Jan–Jun 2024, with operating surplus up 9% to 139 MSEK; however, management result fell to 9 MSEK from 39 MSEK year-over-year.

• Net result for the period was -48 MSEK, an improvement from -152 MSEK last year; EPS was -0.08 SEK.

• Q2 saw a 16% revenue increase to 108 MSEK and a 19% rise in operating surplus to 75 MSEK; management result for Q2 was 14 MSEK.

• Demand for student housing is rising, with a record number of admitted students for autumn 2024 and a growing national housing queue exceeding 47,000 applicants.

• The company completed over 1,200 new student apartments since last autumn, but higher vacancies occurred due to new production.

Financial highlights

• Operating surplus margin was 63% for Jan–Jun (down from 67%); Q2 margin improved to 69%.

• Property value at period end was 7,852 MSEK, with 6,645 student apartments under management.

• Net asset value per share was 3.66 SEK, slightly down from 3.70 SEK at year-end.

• Return on equity for Jan–Jun was -4.7%; loan-to-value ratio was 71.2%.

• Interest coverage ratio was 1.19x, below the long-term target of 2.0x.

Outlook and guidance

• Management expects all new apartments to be rented by autumn; focus remains on strengthening the balance sheet and reducing leverage.

• Anticipates further interest rate cuts in H2 2024, which would benefit the company as 40% of loans have variable rates.

• No new construction projects will be started in the near term due to market uncertainty; priority is on liquidity and financial stability.