Prisma Properties (PRISMA) Q3 2024 earnings summary

Executive summary

• Rental income grew 16% year-over-year in Q3 2024, driven by acquisitions, completed projects, and CPI-adjusted leases.

• Net operating income rose 17% to SEK 88 million, with adjusted profit from property management at SEK 46 million, up from SEK 29 million.

• Portfolio includes 124 properties valued at SEK 6.6 billion, with new acquisitions in Gothenburg and Vänersborg.

• Occupancy rate remains high at 99% (98.9%), with a WAULT of 9.1 years.

• Property management organization is fully operational and preparing for in-house management in Sweden in 2025.

Financial highlights

• Rental value for standing assets is SEK 394 million, with a surplus ratio of 90% and property yield (adjusted) at 6.4%.

• Net profit for Q3 2024 was SEK 23 million, compared to SEK -1 million in Q3 2023.

• Unrealised property value changes were SEK 31 million in Q3 (0.5% increase), but -SEK 32 million YTD, with a one-off SEK -50 million write-down in Uppsala.

• Interest income from IPO liquidity contributed approximately SEK 10 million in the quarter; cash position at SEK 1,113 million at quarter-end.

• Average interest rate is 5.30%, with interest coverage ratio at 2.0x.

Outlook and guidance

• Five ongoing development projects with a total estimated rental value of SEK 20.6 million and NOI of SEK 19.5 million.

• Planned construction starts from Q4 2024 to Q4 2025, including projects in Sweden and Denmark.

• Only Kiruna project delayed due to winter, with construction to start in Q2 2025.

• Planned projects expected to yield higher returns than ongoing projects, with positive signs on yield on cost.

• Dividend payouts expected to remain low as profits are reinvested for growth.