K-Fast (KFAST) Q2 2024 earnings summary

Executive summary

• Profit for the period was SEK 87.9 million, reversing a SEK -121.3 million loss, with strong contributions from Vitra, Voleum, and property management.

• Rental income rose 31% year-over-year to SEK 302.6 million, driven by a 29% increase in managed units to 5,160.

• Initiated a new 2024–2028 business plan, targeting 30–50% annual divestment of new construction for expansion and self-financing.

• Sold Danish property portfolio (311 units) for SEK 1,087 million, retaining a 20% stake, with transfer after the reporting period.

• K-Prefab signed its largest contract to date, a SEK 200 million order for a structural frame project in Stockholm.

Financial highlights

• Group revenues for Jan–Jun 2024: SEK 530.7 million (599.8), period result SEK 87.9 million (–121.3), EPS SEK 0.34 (–0.68).

• Property Management: Net operating income SEK 194.9 million (150.9), profit from property management SEK 60.3 million (56.7), EPS SEK 0.25 (0.26).

• Construction: Income SEK 869.8 million (1,324.8), gross profit SEK 223.9 million (284.5), profit before value changes SEK 169.9 million (202.5), EPS SEK 0.70 (0.94).

• Investment properties valued at SEK 15,748.0 million, up 6% from December 2023.

• Long-term NAV SEK 6,053.2 million (5,803.5), or SEK 24.61 per share.

Outlook and guidance

• Ongoing sales processes for commercial and residential properties in Sweden.

• Vacancy rates expected to normalize by year-end 2024/2025, with improved occupancy and profitability as recent completions are absorbed.

• Prefab segment anticipates continued order growth and operational scaling, with a broader product mix.

• Swedish housing demand remains strong, especially in growth regions; interest rate cuts may support market conditions.