Fast Ejendom Danmark (FED) Q2 2024 earnings summary

Executive summary

• Rental income rose to DKK 49.8m in H1 2024, up 2% year-over-year, or 7% when adjusted for a one-time gain in 2023, driven by new lettings, higher rents, and increased occupancy, especially at Ringager and Baltorpvej.

• Operating profit before fair value adjustments was DKK 27.1m, up DKK 1.2m (+4%) year-over-year when adjusted for the 2023 one-off, reflecting higher rental income offset by increased property costs.

• Fair value adjustments on investment properties totaled DKK +27.5m, mainly from value uplifts and compensation from tenant departures.

• Net profit before tax was DKK 30.8m, up from DKK 28.2m in H1 2023, despite higher financing costs.

• Net asset value per share increased 3.8% since year-end 2023 to DKK 254.71.

Financial highlights

• Rental income: DKK 49.8m (H1 2023: DKK 48.9m); adjusted increase of DKK 3.3m (+7%).

• Operating profit from property: DKK 33.1m (H1 2023: DKK 34.4m); adjusted increase of DKK 1.1m (+3%).

• Fair value adjustments: DKK +27.5m (H1 2023: DKK +15.7m).

• Net financial expenses: DKK -23.7m (H1 2023: DKK -15.8m), reflecting higher interest rates and project financing.

• Net profit after tax: DKK 24.1m (H1 2023: DKK 22.0m).

• Cash flow from operations: DKK +1.9m (H1 2023: DKK +13.0m), impacted by higher costs and financing expenses.

• Investment property portfolio value: DKK 1,587.0m (end 2023: DKK 1,492.1m).

• Loan-to-value: 48.8% (end 2023: 47.6%).

Outlook and guidance

• Guidance for 2024 maintained: operating profit before fair value adjustments around DKK 59m, cash flow from operations around DKK 14m, and year-end occupancy rate around 90%.