Ovaro Kiinteistösijoitus (OVARO) Q4 2024 earnings summary

Executive summary

• Net profit for 2024 was €586 thousand, down from €2,588 thousand year-over-year, mainly due to losses from apartment sales.

• Major capital was freed from apartment divestments and redirected to strategic development projects, especially in Jyväskylän Kukkula.

• Strong equity ratio at 68.4% provides a stable base for future projects.

• Jyväskylän Kukkula acquisition completed, providing a 15-year development pipeline.

• Market conditions are expected to improve in 2025 as interest rates decline and housing supply tightens in growth centers.

Financial highlights

• Revenue for 2024 was €5.26 million, a 6.1% decrease year-over-year due to apartment sales.

• Net profit for 2024 was €586 thousand, down 77.4% from €2,588 thousand in 2023.

• Operating profit (EBIT) was -€467 thousand, compared to €3.15 million in 2023.

• EPRA earnings were -€143 thousand (2023: €918 thousand); EPRA NAV per share was €4.91 (2023: €5.31).

• Cash and cash equivalents at year-end were €1.6 million, down from €8.6 million.

• Dividend of €0.13 per share was paid for 2023; no dividend proposed for 2024.

Outlook and guidance

• 2025 net profit is expected to improve compared to 2024.

• Focus in 2025 will be on Jyväskylän Kukkula zoning and advancing buy-develop-sell projects.

• Market environment seen as improving due to lower interest rates and tightening housing supply.