Q4 2024 Neobo Fastigheter AB (publ) Earnings Call Transcript
Key Points
- Rental income in the like-for-like portfolio increased by 6%, driven by rent adjustments and lower vacancies.
- Net operating income increased by 12% in the like-for-like portfolio.
- Neobo Fastigheter AB (OSTO:NEOBO) successfully met all internal sustainability targets for 2024.
- The company refinanced loan agreements totaling SEK2.7 billion at margins lower than the average interest margin.
- Neobo Fastigheter AB (OSTO:NEOBO) was included in the EPRA index, enhancing its market visibility.
- Unrealized value changes amounted to SEK301 million-minus, reflecting a 2.2% decrease over the year.
- The average yield requirement used in valuations increased from 3.8% to 5.0% by the end of 2024.
- Total property costs increased by SEK6 million, mainly due to higher costs for operations.
- The occupancy rate improvement was modest, with only a 0.3 percentage-point increase during the last year.
- The company's loan-to-value ratio is relatively high at 61%, which may constrain future investment flexibility.
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Thank you, and welcome, everyone, to the presentation of Neobo's year-end report 2024. My name is Ylva Sarby Westman, and I'm joined here today by our CFO, Maria Strandberg.
Sweden needs more affordable housing. And by developing our properties to meet people's needs, we aim to contribute to a more sustainable residential property market in Sweden. We have worked intensively during the last year to prepare Neobo for compliance with Nasdaq Stockholm's listing requirements. The listing was followed by the positive news that Neobo at the end of the year had been included in the EPRA index.
Operations have continued to perform well throughout the year. Rental income in the like-for-like portfolio increased by 6%, driven by rent adjustments and lower vacancies. Net operating income increased by 12% in the like-for-like portfolio and profit from property management increased by 3% despite the divestment of seven properties and higher financing costs during the year.
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