K-Fast (KFAST) Q4 2024 earnings summary

Executive summary

• New business plan for 2024–2028 targets 1,000 housing starts per year, ramping to 1,200 by 2028, with a split into Construction and Property Management segments.

• Major divestment of all management properties in Region Syd to Brinova for SEK 10,760m, paid in Brinova shares, resulting in up to 58.4% ownership and consolidation of Brinova.

• Profit for the year was SEK 74.8m, a turnaround from a loss of SEK -398.1m in 2023.

• Strengthened partnerships with Kilenkrysset and Titania; exited Danish property portfolio for SEK 1,087m.

• Year-end occupancy rate at 96.4% (91.9% in 2023); improved surplus ratio to 66.5%.

Financial highlights

• Rental income: SEK 603.4m (up from SEK 480.2m); net operating income: SEK 401.2m (up from SEK 307.3m).

• Net income for the year was SEK 74.8m, up from SEK -398.1m in 2023.

• Long-term net asset value per share increased 4% to SEK 25.23.

• Group revenues: SEK 2,462.9m (2,845.5); total assets: SEK 17,465.9m (16,807.2).

• Direct yield on completed properties: 4.44% (4.37%).

Outlook and guidance

• Business plan aims for 1,000–1,200 annual housing starts by 2028, with 30–50% of new volumes to be divested for self-financing and expansion.

• Brinova transaction expected to increase earnings from property management by approximately 15%.

• Market conditions have stabilized and show early signs of improvement.

• Focus on property management in West and East regions and continued development of construction and prefab operations.

• Higher Brinova market cap expected to boost liquidity and capital market attention.