Q3 2024 Catena AB Earnings Call Transcript
Key Points
- Catena AB (FRA:T9R) reported a 17% increase in rental income, reaching SEK1,566 million, driven by acquisitions and CPI-linked contracts.
- The company has a solid balance sheet with a loan-to-value (LTV) ratio of 37.6%, providing headroom for future investments.
- Catena AB received an upgraded credit rating from Fitch, reflecting strong performance and strategy.
- The acquisition of DSV HS in Denmark, the largest logistics center in Denmark, is expected to significantly boost earnings capacity.
- The company's net leasing was positive, with a letting ratio of almost 97% and a weighted average lease expiry (WALE) of 6.7 years.
- Profit from property management per share decreased to SEK16.78, attributed to temporary factors.
- There was a SEK28 million write-down in joint venture companies, although partially offset by a SEK37 million value uplift.
- The transaction market is becoming more competitive, potentially impacting Catena AB's ability to secure favorable deals.
- Development projects are facing delays due to challenges with natural values and administrative approvals.
- The macroeconomic environment remains uncertain, with potential impacts from political challenges and central bank policies in Europe.
Go ahead.
Hi and welcome everyone. We stick to the same agenda today as we used to have a short summary, business overview and an update followed by sustainability finance and a short takeaway before ending up within Q&A. So, the next slide, please, let's go into the summary of Quarter three 2024 where we reported 17% increase in rental income ended up at SEK1,566 million driven by acquisitions projects. And by our CPI linked contracts. profit from property management increased by 7% in total and per share. It was down to SEK16.78 per share. We do see this as temporary since we now have acquired a lot and have a much stronger cash flow in the coming quarters. We also show this in our earnings capacity in our report compared with earnings capacity report one year ago, we now have an increase by over 21% per share going forward in our result. We have an item related to a write down in our joint venture companies with SEK28 million last year. At the same time, we had a value uplift from this GJV with SEK37
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