Tessin Nordic (TESSIN) Q3 2024 earnings summary

Executive summary

• Revenue for Q3 2024 fell 49% year-over-year to 5.7 MSEK, with a 47% drop for the nine-month period to 17.9 MSEK, mainly due to weak investment market conditions and lower access to capital.

• Tessin secured 600 MSEK in institutional capital via a three-year agreement with Pollen Street, with potential to double, and completed a strategic acquisition agreement for Alfa Kraft Fonder AB.

• The company completed a fully subscribed rights issue raising 5.8 MSEK and secured 15 MSEK in convertible loan financing.

Financial highlights

• Q3 2024 normalized EBITDA was -4.5 MSEK; reported EBITDA was -7.5 MSEK (vs. 0.5 MSEK in Q3 2023).

• EBIT for Q3 2024 was -8.3 MSEK (vs. -0.8 MSEK), and for the nine-month period -17.7 MSEK (vs. -5.8 MSEK).

• Net loss for Q3 2024 was -7.5 MSEK (vs. -1.6 MSEK); for the nine-month period, -15.5 MSEK (vs. -7.0 MSEK).

• Earnings per share for Q3 2024 was -0.02 SEK (vs. -0.01 SEK); for the nine-month period, -0.04 SEK (vs. -0.03 SEK).

• Cash flow from operations for the nine-month period was -17.8 MSEK; cash and equivalents at period end were 15.8 MSEK.

Outlook and guidance

• Management expects the first effects of new loan facilities to impact revenue in Q4 2024, with a larger impact in 2025 due to a lag in realization.

• The company is pursuing a strategy to increase institutional investor participation to meet high demand for real estate financing.