Sydsvenska Hem (SYDSV) Q2 2024 earnings summary

Executive summary

• Rental income for Q2 2024 was 24,530 tkr, down 1% year-over-year; for H1 2024, rental income rose 6% to 50,519 tkr compared to H1 2023.

• Operating net for Q2 fell 4% year-over-year to 18,511 tkr; for H1, it increased 6% to 36,755 tkr.

• Management profit for Q2 was 10,192 tkr, down 10% year-over-year; for H1, it rose 6% to 20,386 tkr.

• Net profit for Q2 was 4,114 tkr (0.64 kr/share) versus -35,419 tkr last year; H1 net profit was 13,837 tkr (2.14 kr/share) versus -29,282 tkr.

• Portfolio market value at June 30 was 1,458,912 tkr; loan-to-value ratio improved to 42.10%.

Financial highlights

• H1 rental income up 6% year-over-year, driven by acquisitions and 6.5% indexation of leases.

• H1 operating net up 6% to 36,755 tkr; surplus ratio stable at 72.75%.

• H1 management profit up 6% to 20,386 tkr; H1 net profit 13,837 tkr, return on equity 3.63%.

• H1 property revaluation was -4,378 tkr, a significant improvement from -56,576 tkr last year.

• H1 financial costs rose 6% due to higher market rates; average interest rate 3.63%.

Outlook and guidance

• Management sees stable earnings and a strong balance sheet, enabling continued property development and acquisitions.

• Acquisition of Rydebäck Centrum in Helsingborg, fully let, will contribute to earnings from Q3 2024.

• Focus remains on leasing vacant space and value creation through property development.