Ovaro Kiinteistösijoitus (OVARO) Q3 2024 earnings summary

Executive summary

• Net loss for Jan–Sep 2024 was €1.3 million, down from a €3.1 million profit year-over-year, mainly due to losses on property sales and fair value changes.

• Operational result (EPRA) remained stable at €0.6 million compared to €0.6 million last year.

• 180 apartments sold for €11.7 million, with sales €2.5 million below book value.

• Major investments included full acquisition of Jyväskylän Kukkulan Kehitys Oy and new property purchases in Kuopio and Jyväskylä.

• Issued a negative profit warning, expecting 2024 results to weaken significantly from 2023.

Financial highlights

• Revenue for Jan–Sep 2024 was €4.24 million, nearly flat year-over-year.

• Net rental income rose to €2.3 million from €2.0 million year-over-year.

• Net loss for Q3 2024 was €2.1 million, compared to a €0.3 million loss in Q3 2023.

• Cash position at period end was €5.1 million, down from €8.6 million at 2023 year-end.

• Equity ratio decreased to 62.5% from 72.6% at 2023 year-end.

Outlook and guidance

• 2024 full-year result expected to weaken significantly versus 2023 due to delayed major transaction and weaker-than-expected apartment sales.

• Market environment seen as improving in 2025–2026, with potential for housing undersupply in growth centers.