Fast Ejendom Danmark (FED) Q3 2024 earnings summary

Executive summary

• Rental income rose to DKK 76.1m for the first nine months, up 6.4% year-over-year, or 10.1% when adjusted for a one-time gain in 2023, driven by new lettings at Baltorpvej and higher occupancy at Ringager.

• Operating profit before fair value adjustments increased to DKK 42.5m, up 2.9% year-over-year, or 9.3% adjusted for the prior year's one-off income.

• Net profit before tax reached DKK 58.4m, compared to DKK 31.3m in the same period last year.

• Portfolio value increased to DKK 1,588.5m, reflecting fair value gains, improvements, and new projects, offset by a property sale.

• Loan-to-value (LTV) ratio stood at 47.1% at the end of September 2024.

Financial highlights

• Rental income: DKK 76.1m (2023: DKK 71.5m); adjusted increase of DKK 7.0m (+10.1%).

• Operating profit from property: DKK 51.3m (2023: DKK 50.1m).

• Fair value adjustments: DKK +52.3m (2023: DKK +15.9m), including DKK 5.0m gain from property sale.

• Net financial expenses: DKK -36.4m (2023: DKK -25.9m), mainly due to higher interest and project financing.

• Net profit after tax: DKK 45.5m (2023: DKK 24.4m).

• Cash flow from operations: DKK +5.8m (2023: DKK +21.5m), reflecting higher finance costs and working capital changes.

Outlook and guidance

• Guidance for 2024 maintained: operating profit before fair value adjustments around DKK 59m, operating cash flow about DKK 14m, and year-end occupancy rate near 92%.