Prime Office (PRIMOF) Q3 2024 earnings summary

Executive summary

• Revenue for the first nine months of 2024 increased by 2.5% year-over-year to DKK 151.2 million, with primary operating profit at DKK 88.9 million and a margin of 58.8%.

• Net profit before value adjustments and tax was DKK 57.8 million, while profit before tax after value adjustments was DKK 115.4 million, down from DKK 125.2 million in the prior year.

• Equity stood at DKK 2,060 million and total assets at DKK 4,360 million as of September 30, 2024.

• Major project launch: construction began on a 29,000 m² residential development in Aarhus, expected to complete in early 2028.

Financial highlights

• Operating expenses decreased to DKK 45 million from DKK 48 million year-over-year.

• Administrative expenses rose to DKK 17.3 million, including one-off costs related to property sales and advisory services.

• Value adjustments on investment properties were DKK 57.7 million, mainly from residential assets.

• Cash flow from operations was DKK 67.8 million; cash at period end was DKK 192.2 million.

• The company invested DKK 478.2 million, mainly in land purchases in Aarhus.

Outlook and guidance

• 2024 revenue is expected at DKK 195–210 million, with primary operating profit of DKK 95–125 million and pre-value adjustment profit before tax of DKK 75–90 million.

• Management maintains guidance despite continued macroeconomic and geopolitical uncertainty.