Fastighets Balder (BALD) Q4 2024 earnings summary

Executive summary

• Rental income and net operating income grew 8% year-over-year in 2024, with profit from property management per share up 3% to SEK 1.29 in Q4 and current earnings capacity per share up 9% to SEK 5.46.

• Portfolio value reached SEK 223.2 billion, with 80% of assets in capitals and large cities, and a 96% occupancy rate.

• Net profit after tax rebounded to SEK 3,304m, a turnaround from last year’s loss of SEK -6,746m.

• S&P confirmed BBB credit rating and improved outlook from negative to stable.

• Portfolio remains diversified across residential and commercial assets, focused on the Nordics with some exposure in Germany and the UK.

Financial highlights

• Full-year rental income was SEK 12,876m, up 8% year-over-year; net operating income was SEK 9,613m, surplus ratio 75%.

• Net debt to total assets at 49.4%; interest coverage ratio 2.7x; available liquidity SEK 20.7bn at year-end.

• NAV per share at year-end was SEK 88.31.

• Profit from property management attributable to shareholders was SEK 6,011m, down 2% year-over-year.

• Per share profit from property management increased from SEK 516 to SEK 546 sequentially.

Outlook and guidance

• Management targets Net Debt/EBITDA of 11x, with gradual progress and focus on balanced capital allocation.

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

• Expansion expected primarily through acquisitions and active property management.

• Optimism for improved Finnish residential market and increased transaction activity in H2 2025.

• Focus on efficiency, cost control, and selective investments to enhance long-term value.