Studentbostäder i Norden (STUDBO) Q4 2024 earnings summary

Executive summary

• Revenue increased 17% year-over-year to 456 MSEK, with operating surplus up 15% to 288 MSEK; net profit reached 20 MSEK compared to a loss of -351 MSEK last year.

• Fourth quarter saw revenue up 15% and operating surplus up 19% year-over-year; net profit for Q4 was 71 MSEK versus -128 MSEK.

• Uthyrningsgrad (occupancy rate) improved to 97.2% from 94.8% year-over-year, reflecting strong demand and effective management.

• Board proposes no dividend, prioritizing reinvestment for growth.

Financial highlights

• Operating margin (överskottsgrad) for the year was 63% (64% last year); Q4 margin increased to 64% (62%).

• Long-term net asset value per share rose to 3.86 SEK (3.70 SEK last year).

• Return on equity improved to 0.96% from -16.8% year-over-year; Q4 return was 13.77%.

• Interest coverage ratio was 1.15 (1.21 last year); loan-to-value ratio at 70.4% (70.8%).

• Cash flow from operations before working capital changes was 47 MSEK (28 MSEK last year).

Outlook and guidance

• Management expects future rent increases to outpace cost inflation, supporting further profit growth.

• Portfolio quality and market trends suggest continued positive property value development.

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