Lumo (LUMO) Q3 2024 earnings summary

Executive summary

• Total revenue and net rental income increased by 3.1% year-over-year in Q3 and 9M 2024, driven by completed apartments, but FFO declined 11.8% due to higher finance and maintenance expenses.

• Financial occupancy rate decreased to 91.5% from 92.7% year-over-year, but improved sequentially in Q3.

• Market oversupply is easing as new supply declines, especially in the capital region.

• The cost-saving program is progressing as planned, with sharply reduced investments and a strong balance sheet.

• CEO transition occurred after the review period, with Erik Hjelt appointed interim CEO following Jani Nieminen's resignation.

Financial highlights

• Total revenue for 9M 2024 was €338.8M (+3.1%); net rental income €228.4M (+3.1%).

• FFO for 9M 2024 was €113.8M (-11.8%); profit before taxes -€14.3M (down from €7.2M).

• Gross investments for 9M 2024 were €21.6M, down from €161.3M year-over-year.

• Net rental income margin stable at 67.4% year-over-year.

• EPRA NRV per share €18.34 (down 4.0%).

Outlook and guidance

• 2024 revenue expected to grow 2–4% year-over-year; FFO forecast at €142–152M, excluding non-recurring costs.

• Guidance assumes stable occupancy and rent increases, excluding impact of acquisitions/disposals.