ALM Equity (ALM) Q3 2024 earnings summary

Executive summary

• Completed merger with Svenska Nyttobostäder, forming a joint company with Aermont Capital as a 60% long-term capital partner, unlocking SEK 1.9 billion in liquidity and enabling accelerated execution of the business plan.

• The quarter was marked by significant one-time effects, with a total negative result impact of SEK -822 million from the merger and transaction.

• Focused on executing the asset business plan for Svenska Nyttobostäder, with accelerated value creation enabled by new capital structure.

• The new structure focuses on three segments: development, contracting, and management, with a shift from company development to property development.

• The company is positioned for further expansion, with exclusive rights for Aermont Capital to co-invest in new residential projects over the next two years.

Financial highlights

• IFRS net sales for Q3 2024 were SEK 662 million, up from SEK 134 million in Q3 2023; nine-month net sales reached SEK 1,796 million.

• Q3 2024 net result was SEK -883 million, heavily affected by merger and transaction one-offs; nine-month result was SEK -1,041 million.

• Group equity at SEK 2,865 million (down from SEK 3,356 million year-over-year); total assets at SEK 6,629 million (down from SEK 9,216 million).

• Negative goodwill of SEK 1,200 million recognized; loss on own shares in Nyttobostäder of SEK -1,090 million; transaction effects of SEK -722 million.

• Earnings per share (EPS) for Q3 was SEK -45.71 (Q3 2023: -16.92); nine-month EPS was SEK -76.99.

Outlook and guidance

• Realization of the business plan for Svenska Nyttobostäder set for 2024–2029, with access to capital at the right time.

• The company expects to benefit from improved market conditions, lower interest rates, and increased transaction activity in the property market.

• Focus remains on value creation through development and management of urban, space-efficient housing in Stockholm, with further expansion planned.

• New capital partner enables optimization of capital structure and investment in new assets.

• Plans to move to the main stock exchange list in 2025 to enhance capital market access.