Holmström Fastigheter (HOLMSTRÖM) Q3 2024 earnings summary

Executive summary

• Rental income for January–September 2024 was SEK 35m, down from SEK 36m year-over-year; net operating income was SEK 20m, compared to SEK 21m.

• Profit/loss from associated companies improved to SEK -28m from SEK -580m year-over-year.

• Changes in investment property values were SEK 10m, up from SEK -94m year-over-year.

• Profit before tax for the period was SEK 7m, a significant turnaround from SEK -687m year-over-year.

• Q3 profit before tax was SEK 32m, compared to SEK -8m in Q3 2023.

Financial highlights

• Q3 rental income was SEK 11m (SEK 12m in Q3 2023); net operating income was SEK 7m (SEK 9m in Q3 2023).

• Profit from associated companies in Q3 was SEK -11m, mainly due to a SEK -3m loss from Ankarhagen and SEK -7m from Vincero Fastigheter.

• Realized change in investment property values in Q3 was SEK 10m, related to the sale of Klippudden Fastigheter shares.

• Operating profit for Q3 was SEK 48m, up from SEK 6m in Q3 2023.

• Comprehensive income for Q3 was SEK 48m, compared to SEK -8m in Q3 2023.

Outlook and guidance

• The bond duration was extended by two years to October 2026 after the quarter, with a structured amortization plan.

• Financial goals include an adjusted equity ratio of at least 40% and a return on equity of at least 8% over a business cycle.