Annehem Fastigheter publishes interim report Jan-Sep 2024 and revises financial targets

Annehem Fastigheter AB (publ) continues to deliver a good result, with strong growth in net operating income, and net letting for the period that remained positive in a challenging market. During the period, we report increased rent revenue and an improved net operating income of 10.6 percent. The income from property management, excl. currency effects, increased by 6.2 percent compared to the same period last year, despite a higher net interest expense. In connection with the interim report, Annehem Fastigheter's board of directors has decided to revise the financial targets for the company.

Jan-Sep¹

• Rent revenue for the period increased to SEK 206.5 million (186.3)
• Net operating income increased to SEK 175.0 million (158.2)
• Income from property management increased to SEK 69.7 million (63.4)
• Income from property management excl. currency effects increased to SEK 75.0 million (70.6), and per share totalled SEK 0.90 (1.03)²
• Income for the period amounted to SEK -18.2 million (-191.4), and per share totalled SEK -0.22 (-2.78)²
• Investments in existing properties amounted to SEK 53.6 million (55.0)
• Valuations of investment properties yielded a decrease in fair value of
  SEK -56.1 million (-266.0)
• The fair value of investment properties amounted to SEK 4,674.5 million (4,412.7)
• Positive net letting of SEK 13.2 million (30.5)
• Net reinstatement value (EPRA NRV) per share amounted to SEK 30.9 (41.2)

¹⁾ In this report, the comparative figures in brackets for income statement items pertain to the period January-September 2023, and for balance sheet items to 31 December 2023. "Annehem" and "the Company" refer to the Annehem Fastigheter Group.
²⁾ The average number of shares and key figures based on this have been restated by an adjustment factor of 1.1659 for all comparative periods, corresponding to the bonus issue element in this year's rights issue; for more information, refer to Note 7 in the interim report.

"We are in a stable situation with a low loan-to-value ratio and good liquidity, which gives Annehem great opportunities for expansion through acquisitions that supplement our property portfolio. We have good conditions for investing in our existing portfolio with high returns. Our committed employees and I are looking forward to working further toward our challenging targets." says Monica Fallenius, CEO of Annehem Fastigheter.  

Significant events during the period

• Annehem has extended a lease with a tenant in Finland with a maturity of five years. In connection with the lease extension, rented spaces will be optimized and tailored to the tenant's current needs.

Significant events after the end of the period

• Annehem revises financial targets.

Revised financial targets

Annehem has remained stable since its listing in 2020 and has navigated through a challenging macroeconomic environment in recent years. The company's conservative financial approach, relying solely on bank financing, has proven crucial in a high-interest rate environment, contributing to stability combined with sustainable and profitable growth.

Considering the changed macroeconomic environment, Annehem is now turning its focus to cash flow and profitability, utilizing the capital generated by the business to achieve organic growth through acquisitions and investments in our existing portfolio.  

"Our revised financial targets are challenging and highlight our continued focus on growth. With a strong cash flow, we are prioritising growing organically, thereby creating shareholder value without jeopardising our financial position." says Monica Fallenius, VD Annehem Fastigheter.

Annehem's financial targets and dividend policy will be:

• Annual growth in income from property management of a least 20 percent
• Annual growth in EPRA net reinstatement value (NRV) of at least 10 percent
• Net loan-to-value ratio over time that does not exceed 55 percent
• Long-term interest-coverage ration that exceeds a multiple of 2.2
• Primarily reinvest profits in order to utilise business opportunities and achieve Annehem's growth targets

The report will be presented at 11:00 a.m. CEST on October 24 by CEO Monica Fallenius and CFO Adela Colakovic. The presentation will be held in Swedish. Questions relating to the presentation can be forwarded to [email protected] in advance. It is possible to ask questions in writing via the chat function in Teams after the presentation.

Sign up for the presentation by clicking on the following Teams-link:
https://events.teams.microsoft.com/event/c82cb54f-d989-46f3-a390-92dd2e935745@e510a398-d946-4fe1-ba17-4c5478d05bc5

The interim report and the presentation will be published on Annehem's Website

For further information please contact:
Monica Fallenius, CEO
[email protected] 
Tel. +46 70 209 01 14

This information is information that Annehem Fastigheter AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 08:00 CEST on October 24, 2024

About Annehem Fastigheter
Annehem Fastigheter is a growth company specializing in sustainable commercial, community service and residential in the Nordic growth regions of Stockholm, Skåne, Gothenburg and Helsinki. The property portfolio in Annehem Fastigheter consists of 27 investment properties with a value of SEK 4,674,5 million and a lettable area of 207 thousand sqm as of September 30, 2024. The Company has been listed on Nasdaq Stockholm since December 2020 with the ticker ANNE B and has a Nasdaq Green Equity Designation since May 2022. For more information, please visit Annehem's website www.annehem.se.