Mofast (MOFAST) Q2 2024 earnings summary

Executive summary

• Focus on owning, developing, and managing community and residential properties in Swedish growth regions, with 72 properties valued at SEK 3.0 billion and a lettable area of 147,854 sqm as of June 30, 2024.

• Strategic divestments and amortizations have strengthened the balance sheet, reducing leverage and improving net operating income outlook.

• The company maintains a balanced portfolio between community and residential properties, with a strong presence in Mälardalen and Stockholm.

Financial highlights

• Q2 2024 rental income: SEK 55.5m (57.8m), net operating income: SEK 33.7m (40.1m), management result: SEK 1.8m (5.7m), profit before tax: SEK 20.1m (-218.2m).

• H1 2024 rental income: SEK 111.6m (113.4m), net operating income: SEK 62.5m (71.4m), management result: SEK 0.1m (6.5m), profit before tax: SEK 10.8m (-221.0m).

• Ongoing cost reductions from property sales and amortizations; average interest rate at 4.9%.

• Net asset value per share: SEK 38.6 (81.2), result per share Q2: SEK 0.4 (-10.8).

Outlook and guidance

• Continued focus on optimizing the balance sheet and improving net operating income.

• Over 50% of financing is on variable rates, expected to benefit from lower interest rates.

• Management is optimistic about the second half of 2024 and beyond.