Stendörren Fastigheter (STEF) Q3 2024 earnings summary

Executive summary

• Focus on logistics, warehouse, and light industrial properties, mainly in Greater Stockholm and Mälardalen, with strategic expansion into other Nordic regions.

• Portfolio value reached SEK 13.1bn as of September 30, 2024, with 148–153 properties and 816,000 sqm lettable area.

• Growth driven by acquisitions, project development, and operational improvements, with strong rental income and NOI growth.

• Rental income rose 5% to SEK 664m and NOI increased 5% to SEK 536m for Jan–Sep 2024, with an 8% underlying increase for the comparable portfolio.

• Emphasis on sustainability, targeting net zero carbon emissions by 2040 and significant reductions in energy intensity and CO2 emissions.

Financial highlights

• NOI increased by 8.4% in the comparable portfolio year-over-year; surplus ratio at 79% as of Q3 2024.

• Economic occupancy rate stable at 93% as of September 30, 2024.

• Net letting of SEK 4.4m for Q1–Q3 2024, with SEK 7.4m in Q3 alone.

• Lease renegotiations led to a 6% average increase in rental values for Q1–Q3 2024.

• Assessed annual net operating income of SEK 755m as of October 1, 2024.

Outlook and guidance

• Ongoing and recently completed projects expected to add approximately SEK 70m in NOI upon leasing and completion.

• Substantial growth potential with 638,000 sqm of building rights, mainly in the Stockholm region.

• The company aims to build 25,000–50,000 sqm per year long-term, leveraging its building rights portfolio.

• Continued focus on profitable growth through acquisitions and development, especially in urban and growth regions.

• Aggressive growth ambitions are set for the second half of 2024 and beyond.