Fastighets Balder (BALD) Q2 2024 earnings summary

Executive summary

• Property portfolio value reached SEK 215.5 billion with 96% occupancy, diversified across residential and commercial segments, and 80% of assets in capitals and large cities.

• Q2 2024 rental income and net operating income both increased by 8% year-over-year, reflecting stable demand.

• Profit from property management declined (down 5–7%) due to higher interest costs, with per share at SEK 1.28 and total at SEK 2,897m.

• Net asset value per share stood at SEK 85.44, with long-term NAV growth averaging 26% per year since 2005.

• Net profit after tax improved to SEK 177m in Q2 2024, compared to a loss in the prior year.

Financial highlights

• Like-for-like rental growth was 3.6% year-over-year.

• Net debt to total assets was 49.8%, with equity/assets ratio at 37.6%.

• Available liquidity was SEK 18.9–19 billion, covering maturities through 2027.

• Net debt/EBITDA improved to 12.4–12.5x, moving toward the 11x target.

• 71% of debt is hedged, with an average interest rate of 3% and fixed credit term of 5.3 years.

Outlook and guidance

• Deleveraging and debt amortization will continue until valuation yields stabilize and the 11x Net Debt/EBITDA target is met.

• Growth-oriented investments may resume once yields and values stabilize, possibly in 2025.

• Helsinki residential market expected to improve in 2025 as completions fall and supply-demand balance returns.

• Available liquidity to be maintained at 1.25–1.5x of coming 12-month maturities.