Q2 2024 Fastighets AB Balder Earnings Call Transcript
Key Points
- Fastighets AB Balder (BALDF) reported an 8% increase in rental income and NOI compared to the same quarter last year.
- The company's occupancy rate remains high at 96%, indicating strong demand for its properties.
- Net debt to assets improved slightly to 49.8%, showing progress in deleveraging efforts.
- The company has a diversified portfolio across Nordic countries and property categories, reducing risk exposure.
- Funding conditions have improved, with new finance contracts at the same level as average margins in all loans.
- Profit from property management decreased due to higher interest rate costs.
- The company has been slow in starting new projects, leading to a decrease in investments.
- The Finnish residential market remains soft, with only slight improvements expected next year.
- The company is currently in a holding pattern for expansion, focusing more on debt amortization.
- There is uncertainty regarding the timing of market recovery and rental growth, particularly in Helsinki.
Morning, everyone. Welcome to Balder's [conference] for the second quarter. And yeah, it will first take us through some slides as per usual about the developments in the quarter. And then I will go through some financing, and we will also talk some longer-term picture for asset liability management side. Erik I'll let you start.
Thanks, Jonas Ericson. Welcome everybody. Today we have our Q2 results.
Looking at by Balder on a high level, we have SEK215 billion in property value, 96% occupancy. We are, as you know, a Nordic company with Nordic exposure, both in residential and commercial properties. And looking specifically at Q2, we had a rental income increase of 8% and even the NOI is increasing 8% compared to the same quarter last year.
Profit from property management decreased a bit. That is, of course, due to higher interest rates cost and looking at net debt to assets, it's now 49.8%.
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