ALM Equity (ALM) Q2 2024 earnings summary

Executive summary

• Fusion between ALM Equity and Svenska Nyttobostäder approved by boards, lenders, and shareholders; formal completion expected September 2, 2024, consolidating assets and liabilities.

• Net profit for Q2 2024 reached SEK 119 million, a significant turnaround from a loss of SEK -2,036 million in Q2 2023, driven by project completions and positive value changes.

• Directed share issue raised SEK 150 million to strengthen liquidity and broaden ownership ahead of a potential main market listing.

• 424 new residential units completed and transferred for Svenska Nyttobostäder during the quarter.

• Strategic focus on asset realization, debt reduction, and accelerating project starts in Stockholm.

Financial highlights

• Net sales for Q2 2024 were SEK 894 million, down from SEK 1,347 million in Q2 2023.

• Net income for Q2 2024 was SEK 119 million, compared to a loss of SEK -2,036 million in Q2 2023.

• Operating profit for Q2: SEK 142 million (vs. -1,162 million Q2 2023).

• Cash and cash equivalents at quarter-end were SEK 267 million.

• Equity at quarter-end was SEK 2,810 million, with an equity ratio of 41% (up from 36% Q2 2023).

Outlook and guidance

• Execution of the business plan and debt reduction are prioritized post-fusion.

• Fusion with Svenska Nyttobostäder to be finalized in September, expected to strengthen financial position and enable accelerated growth.

• Focus on asset sales and refinancing to reduce leverage, with a SEK 400 million bond maturing in September targeted for bank refinancing.

• Opportunity to accelerate the business plan and acquire assets with strategic partners.

• Anticipates improved market conditions in 2025, with expectations of rising housing prices in Stockholm.