Wihlborgs Fastigheter (WHIL) Q3 2024 earnings summary

Executive summary

• Achieved record rental income of SEK 1.043 billion in Q3, up 7% year-over-year, with strong net and gross letting and continued high demand for quality properties in prime locations.

• Rental income for Jan–Sep 2024 rose 7% to SEK 3.150 billion, with operating surplus also up 7% to SEK 2.244 billion.

• Net letting was positive for the 38th consecutive quarter, with SEK 96 million in new leases signed in Q3 and SEK 530 million over the last twelve months.

• Portfolio value increased to SEK 57.898 billion, driven by acquisitions, investments, and positive valuation changes.

• Project investments are ongoing, supporting future growth potential.

Financial highlights

• Income from property management for nine months was SEK 1.329 billion; period result SEK 846 million (SEK 2.75/share).

• EPRA NRV increased 5% to SEK 90.47/share, adjusted for dividend.

• Q3 rental income up 7% year-over-year to SEK 1.043 billion; operating surplus up 7% to SEK 762 million.

• Profit for Q3 was SEK 148 million, including SEK 102 million positive property value changes and SEK 335 million negative derivative value changes.

• Equity/assets ratio at 37.6%, LTV at 51.2%, and interest cover ratio at 2.5x.

Outlook and guidance

• Q4 started positively with new lease agreements, including a significant Thule contract.

• No major terminations expected in Q4; largest potential termination (Saab) may occur in Q1 2025.

• Investment levels for 2025 expected to be SEK 1.5–2 billion.

• Management expects continued positive rental growth, supported by strong net lettings and higher rent levels on new agreements.

• Lower inflation and gradually falling interest rates are anticipated to support market recovery and increased consumption.