Swedish Logistic Property (SLP) Q4 2023 earnings summary

Executive summary

• FY rental income rose 42% to SEK 585m, NOI rose 49% to SEK 487m, and profit from property management increased 36% to SEK 303m.

• Diluted NAV per share increased 15% to SEK 25.26; diluted EPS declined to SEK 1.55 from SEK 2.39.

• Q4 rental income grew 41% YoY, NOI 44% and profit from property management 44%.

Financial highlights

• Net profit was SEK 308m versus SEK 419m in 2022, weighed down by lower derivative valuation gains and higher net financial expenses.

• Property value increased to SEK 10,114m from SEK 8,133m; operating cash flow before working-capital changes was SEK 287m versus SEK 214m.

• Property value changes were positive SEK 236m as the average direct return requirement rose 30 bps to 5.9%.

Outlook and guidance

• Long-term goals: average annual growth of at least 15% in diluted NAV per share and profit from property management per share.

• 2025 sustainability targets include 70% sustainable financing, 15 MW installed solar capacity, 50% certified lettable area and 15% lower energy use in comparable holdings.

• Annualized earnings ability at 1 January 2024 was SEK 652m rental income, SEK 415m NOI and SEK 288m profit from property management; not a forecast.

• Logistics-property demand remained strong; investment focus included development properties with vacancy, high energy costs or extension potential.