Studentbostäder i Norden (STUDBO) Q3 2024 earnings summary

Executive summary

• Revenue for Jan–Sep 2024 increased 18% to 330 MSEK, with Q3 revenue up 23% year-over-year to 109 MSEK.

• Driftsöverskott (operating surplus) rose 14% to 207 MSEK for Jan–Sep and 25% to 68 MSEK in Q3.

• Net result for Jan–Sep was -51 MSEK, a significant improvement from -224 MSEK last year; Q3 net result was -3 MSEK.

• Uthyrningsgrad (occupancy rate) reached 99% at period end, with all new student housing in Stockholm and Norrköping fully let.

• Portfolio value increased to 7,947 MSEK, with 6,645 student apartments under management.

Financial highlights

• Forvaltningsresultat (management result) for Jan–Sep was 7 MSEK, down from 39 MSEK; Q3 was -2 MSEK.

• EPS for Jan–Sep was -0.09 SEK (vs. -1.01); Q3 EPS was 0 SEK (vs. -0.32).

• Long-term NAV per share was 3.68 SEK (3.70 last year).

• Driftsöverskott margin for Q3 improved to 63% (62%).

• Direct yield for the management portfolio was 3.59% (3.68%).

Outlook and guidance

• Management expects demand for student housing to increase over the next decade, driven by demographic trends and rising university applications.

• No new construction starts planned in the near term due to market uncertainty; focus is on strengthening the balance sheet and liquidity.

• Updated financial targets: annual NAV per share growth of at least 10%, interest coverage ratio above 1.75x, and long-term loan-to-value below 60%.