Titania (TITA) Q3 2024 earnings summary

Executive summary

• Titania maintained its long-term focus on residential development in the Stockholm region despite significant macroeconomic changes, with continued expansion and increased project portfolio since its 2021 IPO.

• The company now manages 526 completed apartments and has 397 under construction, with a project portfolio exceeding 5,000 building rights, of which 1,695 have gained legal force.

• The latest quarter saw a strong rebound in earnings, driven by unrealized value changes, after previous years of losses and minimal profits.

• There is a historically low level of housing starts in Stockholm, but Titania sees this as an opportunity and has initiated new projects, including 117 small houses in Vallentuna.

Financial highlights

• Q3 2024 net sales: SEK 18,454k (16,819), operating net: SEK 12,988k (7,109), pre-tax profit: SEK 257,321k (11,990), net profit: SEK 224,705k (2,728), EPS: SEK 3.14 (0.04).

• Jan–Sep 2024 net sales: SEK 55,115k (48,888), operating net: SEK 41,478k (20,574), pre-tax profit: SEK 299,836k (-52,333), net profit: SEK 241,795k (-64,453), EPS: SEK 3.38 (-0.90).

• Unrealized value changes for Q3: SEK 279,626k (35,786); Jan–Sep: SEK 372,579k (30,296).

• Cash flow from operations Jan–Sep: SEK 142,347k (-106,912); investing: SEK -272,374k (-388,164); financing: SEK 181,641k (355,256).

• Balance sheet total as of Sep 30, 2024: SEK 2,865,853k (2,038,157).

Outlook and guidance

• Titania expects continued strong long-term demand for housing in Stockholm, with economic growth prospects remaining robust despite temporary inflation and interest rate impacts.

• The company is committed to expanding its management portfolio and aims for at least 500 housing starts and new building rights annually.

• No dividend is planned in the coming years as profits will be reinvested in new projects and acquisitions.