Wallenstam (WALL) Q4 2024 earnings summary

Executive summary

• Invested SEK 2.1 billion in new and reconstruction projects during 2024, starting 577 apartments and completing 354, all fully occupied.

• Property value increased to SEK 66 billion with 210 properties and a 96% occupancy rate, mainly in Gothenburg and Stockholm.

• Signed new leases for 25,000 sqm of commercial space and completed major property transactions, including the acquisition of Sergelskrapan for SEK 2.8 billion and sale of four commercial properties for SEK 1.25 billion.

• Repurchased 1.2 million shares in Q4, totaling 2 million shares repurchased in 2024.

• 1,304 apartments under construction at year-end, with major completions and occupation starts planned through 2027.

Financial highlights

• Rental income for 2024 was SEK 2,922 million, up 7% from SEK 2,730 million in 2023; Q4 rental income was SEK 736 million, up 6% year-over-year.

• Net operating income increased 11% to SEK 2,222 million, with a surplus ratio of 76%.

• Income from property management reached SEK 1,150 million, up from SEK 1,039 million year-over-year.

• Profit after tax was SEK 774 million, compared to a loss of SEK 450 million in 2023.

• Net asset value per share increased to SEK 57.50.

Outlook and guidance

• Positive outlook for 2025, supported by a stable balance sheet and ongoing projects.

• Business plan 2030 targets net asset value of SEK 100 per share, with a minimum equity/assets ratio of 35%.

• Rental income growth expected to continue, with agreed rent increases for 2025 on par with 2024.

• Continued focus on sustainable construction and climate goals, targeting significant emission reductions by 2030.

• Expectation of rising long-term interest rates, leading to increased hedging activity.