Q3 2024 Wallenstam AB Earnings Call Transcript
Key Points
- Wallenstam AB (FRA:WAE) has started approximately 170 new apartments in Stockholm and Gothenburg, expanding its housing portfolio in key growth regions.
- The company has entered the commercial segment in CBD Stockholm, acquiring a property with an assessed value of SEK2.8 billion, which is expected to enhance its portfolio.
- Net Operating Income (NOI) increased by 11% compared to last year, reflecting strong operational performance.
- Rental income rose by 7%, driven by both new constructions and existing holdings, indicating robust demand.
- Operating expenses decreased by 3%, primarily due to a significant reduction in electricity prices, contributing to improved financial efficiency.
- The commercial holding in Gothenburg has a vacancy rate of 6%, indicating challenges in fully leasing commercial spaces.
- It takes longer to sign new contracts with tenants, suggesting potential difficulties in tenant acquisition.
- Participation in profit losses of associated companies resulted in a write-down of SEK152 million, impacting financial results.
- The total result after tax for the quarter was negative, partly due to value changes in interest rate derivatives.
- Higher expenses related to property management and weather-related costs increased by SEK28 million and SEK3 million respectively, affecting overall cost management.
Good morning, and welcome to this third quarter presentation of 2024. My name is Susann Linde. I'm CFO and Head of Investor Relations here at Wallenstam. It has been an eventful quarter, even if it doesn't look like that when you see this slide with just two points. We have continued with further starts of new construction this quarter as well. We have started approximately 170 apartments, both in Stockholm and Gothenburg in two different projects.
It was good that we are finally starting to add additional housing to our two growth regions, Stockholm and Gothenburg. And one big thing for us, in the picture, you see two happy gentlemen who have just signed an agreement on a property deal. None of you have probably been able to avoid it.
Wallenstam has taken the step into the commercial segment, now also in CBD Stockholm, where residentials, both in Stockholm and Gothenburg, commercials in the CBD in Gothenburg. And now the three-leaf clover is finally becoming a four-leaf clover. It is a unique property
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