Wihlborgs Fastigheter (WHIL) Q4 2024 earnings summary

Executive summary

• Achieved record rental income of SEK 1,059 million in Q4 2024, with full-year rental income up 8% to SEK 4,174 million and operating surplus up 8% to SEK 2,996 million.

• Income from property management rose 23% to SEK 452 million in Q4 2024; full year at SEK 1,781 million, up 2%.

• Result for the period was SEK 1,706 million, a turnaround from SEK -27 million last year; EPS at SEK 5.55.

• Board proposes a dividend of SEK 3.20 per share, up from SEK 3.15.

• Announced acquisition of eight properties from Granitor, adding 51,000 sqm lettable area and SEK 130 million estimated annual operating surplus.

Financial highlights

• Q4 2024 operating surplus reached SEK 752 million, up 14% year-over-year; Q4 rental income up 9%.

• EPRA NRV per share increased 8% to SEK 93.58, adjusted for dividend.

• Net debt/EBITDA improved to 9.9x, the strongest since 2012.

• Loan-to-value ratio at 50.9%, equity/assets ratio at 38.1%, interest coverage ratio at 2.5x.

• Average interest rate on loans at 3.4%, with average fixed interest period of 2.6 years and loan maturity of 5.5 years.

Outlook and guidance

• Expecting lower occupancy in H1 2025 due to tenant transitions and recent bankruptcies, with recovery anticipated later in the year as new leases take effect.

• Major leases signed in 2024 will gradually contribute to income through 2025 and 2026.

• Investment pace for 2025 expected between SEK 1.5–2 billion, slightly lower than 2024.

• Board proposes a dividend increase and authorizations for share buybacks and new share issues up to 10% of shares outstanding.

• Expectation of improved macroeconomic conditions and continued demand for quality properties.