Prisma Properties (PRISMA) Q4 2024 earnings summary

Executive summary

• Achieved 18% year-over-year rental income growth in Q4 2024, reaching SEK 102 million, driven by acquisitions, completed projects, and CPI-adjusted leases.

• Adjusted profit from property management increased to SEK 47 million in Q4, up from SEK 36 million, with economic occupancy rate at 99% and WAULT of 8.7 years.

• Acquisitions in Q4 totaled SEK 525 million, including portfolios in Sweden and Denmark, and the company expanded from 8 to 20 employees.

• Major refinancing covered approximately 70% of the loan portfolio, reducing average interest rate and extending debt maturity.

• Listed on Nasdaq Stockholm Mid Cap in June 2024, raising SEK 1,185 million through a new share issue.

Financial highlights

• Full-year 2024 rental income was SEK 393 million, up from SEK 345 million in 2023; Q4 rental income was SEK 102 million.

• Net operating income for 2024 was SEK 344 million, with a surplus ratio of 90% and net profit for Q4 at SEK 81 million.

• Profit from property management in Q4 was SEK 47 million; full-year profit was SEK 129 million.

• Property portfolio valued at SEK 7.3 billion at year-end 2024.

• Cash flow for the year was SEK 738 million, with SEK 1,520 million from financing activities.

Outlook and guidance

• Plans to invest around SEK 1 billion in development projects in 2025, targeting SEK 250 million in project starts per quarter.

• Board proposes no dividend for 2024, prioritizing reinvestment for growth.

• Management expects continued growth in discount retail and QSR segments, supported by high tenant demand and a robust project pipeline.

• Ongoing focus on renegotiating leases to defend high WAULT and increase share of grocery tenants.

• Expectation of continued strong bank interest for future financing and further margin improvements.