Wallenstam (WALL) Q2 2024 earnings summary

Executive summary

• Net operating income for H1 2024 rose 14% to SEK 1,110 million, with a surplus ratio of 76.2% and profit after tax of SEK 408 million.

• Rental income increased 9% year-over-year to SEK 1,457 million for H1 2024; Q2 rental income was SEK 737 million.

• 1,238 apartments are under construction, with major new projects started in Årstaberg and ongoing in Nacka and Gothenburg.

• Property value reached SEK 64.2 billion as of June 30, 2024.

• Occupancy rate remains high at 96% across residential and commercial properties.

Financial highlights

• Income from property management for H1 2024 was SEK 563 million, up from SEK 532 million; Q2 income was SEK 294 million.

• Surplus ratio improved to 76.2%, returning to pre-energy crisis levels.

• Profit after tax for H1 2024 was SEK 408 million, a significant turnaround from SEK -170 million in H1 2023.

• Net asset value per share was SEK 56.70 at period end.

• Property value increased to SEK 64.2 billion as of June 30, 2024.

Outlook and guidance

• Management expects further interest rate cuts in Sweden, supporting economic growth and more investments.

• Demand for residential apartments remains high, with additional project starts planned in Stockholm and Gothenburg.

• Rent increases for residential properties in 2025 are expected to be on par with 2024, at approximately 4.5%.

• Goal to reach SEK 100 per share in net asset value by 2030 remains unchanged.

• Continued focus on sustainable construction and social sustainability initiatives.