Annehem Fastigheter (ANNE) Q3 2024 earnings summary

Executive summary

• Net operating income (NOI) grew 10.6% year-over-year to SEK 175.0 million for Jan–Sep 2024, with management result (excluding currency effects) up 6.2% to SEK 75.0 million.

• Net income for the period improved to SEK -18.2 million from SEK -191.4 million year-over-year.

• Positive net leasing of 13.2 Mkr and rental adjustments contributed to income growth.

• Revised financial targets emphasize at least 20% annual growth in management result and a net loan-to-value ratio not exceeding 55%.

• Significant investments and a major lease extension in Finland were completed.

Financial highlights

• Total revenues for Jan–Sep 2024 were SEK 244.9 million, up 10.0% from SEK 222.7 million in 2023.

• NOI reached SEK 175.0 million, a 10.6% increase year-over-year.

• Management result (excl. currency) was SEK 75.0 million, up 6.2% year-over-year.

• Net income for the period was SEK -18.2 million, a significant improvement from SEK -191.4 million last year.

• Economic occupancy rate declined to 91.7% from 94.6% year-over-year.

Outlook and guidance

• Focus remains on organic growth through acquisitions, investments, and reinvestment of profits.

• Annual management result growth target set at a minimum of 20%; annual EPRA NRV growth target at a minimum of 10%.

• Management is optimistic about growth prospects, supported by a strong balance sheet and liquidity.