Wallenstam (WALL) Q2 2024 earnings summary

Executive summary

• Acquired land in Älta/Nacka for SEK 151 million/SEK 136 million and sold building rights in Umami Park/Sundbyberg for SEK 147 million during Q2 2024.

• 1,238 residential units under construction, with major projects in Stockholm and Gothenburg, including 408 apartments started in Årstaberg.

• Maintained a high occupancy rate of 96% across 210 properties valued at SEK 64 billion, with strong demand for both residential and commercial properties.

• Sustainability initiatives include joining REbygg, renewable energy production, biodiversity efforts, and planting 1,130 trees in Umami Park.

• Padelhall in Mölnlycke/Östermalmshallen won two international awards for sustainability and design.

Financial highlights

• Rental income for H1 2024 was SEK 1,457 million (up from SEK 1,339 million), a 9% increase year-over-year, mainly from new production and renovations.

• Net operating income for H1 2024 was SEK 1,110 million (up from SEK 972 million), with a surplus ratio of 76.2% (72.6%).

• Net profit after tax for H1 2024 was SEK 408 million, SEK 600 million higher than the previous year.

• Management result increased by 6% to SEK 563 million for H1 2024.

• Value change in investment properties was SEK -21 million for H1 2024.

Outlook and guidance

• All financial indicators are trending positively, with expectations for a bright future and further interest rate cuts in autumn.

• Continued focus on starting new projects, with planned completions in 2024–2026, including Årstaberg (408 units) and Kallebäcks Terrasser (298 units).

• The 2030 business plan targets a net asset value of SEK 100 per share and a minimum equity ratio of 35%.