Fleming Properties (FLMNG) Q2 2024 earnings summary

Executive summary

• Revenue and net operating income increased year-over-year for both the half-year and Q2 2024 periods.

• Profit from property management rose, but the period ended with a net loss due to negative unrealized property value changes.

• A 15-year lease with Ole Fit was signed, exceeding average rent levels and supporting strategic goals.

• A new CEO, Thomas Lindström, will assume the role on September 1, 2024.

Financial highlights

• Half-year revenue: €3.82m (up from €3.62m); Q2 revenue: €1.92m (up from €1.79m) year-over-year.

• Net operating income for the half-year: €2.98m (up from €2.83m); Q2: €1.56m (up from €1.43m).

• Profit from property management for the half-year: €2.03m (up from €1.95m); Q2: €1.09m (up from €0.98m).

• Net loss for the half-year: €-2.06m (improved from €-3.03m); Q2: €-2.83m (improved from €-3.67m), mainly due to negative property revaluations.

• Cash and cash equivalents at period end: €31.67m (up from €9.37m at year-end 2023).

Outlook and guidance

• Operations are proceeding as planned, with earnings trends in line with expectations.

• Long-term secured cash flows are supported by index-linked leases.

• The new share issue and refinancing have improved operational and financial flexibility.