Nivika Fastigheter AB (publ) Interim report September 2023 - August 2024
Q4 June 2023 – August 2024
(Figures in brackets refer to the same period last year)
- Total rental income increased by 12 % to 176 MSEK (158)
- Net operation income increased by 10 % to 134 MSEK (122)
- The profit from property management increased to 55 MSEK (55).
The profit from property management excluding non-recurruring costs 59 MSEK.
- Change in value for investment properties amounted to 11 MSEK (-210)
whereof realized change in value amounted to 0 MSEK (0)
- Comprehensive income increased to 1 MSEK (-158)
- Earnings per share 0.01 SEK (-2.45*)
*) Right issue carried out in May and November 2023.
September 2023 – August 2024
(Figures in brackets refer to the same period last year)
- Total rental income increased by 10 % to 676 MSEK (612)
- Net operation income increased by 16 % to 481 MSEK (415)
- The profit from property management increased to 193 MSEK (134)
- Change in value for investment properties amounted to 78 MSEK (-458)
whereof realized change in value amounted to 11 MSEK (38)
- Comprehensive income increased to 132 MSEK (-283)
- Earnings per share 1.45 SEK (-4.39*)
- Property value amounted to 11,448 MSEK (10,629)
*) Right issue carried out in May and November 2023.
CEO Sverker Källgården comments:
Rising revenues and higher operating net
The operations and results continue to develop in a positive direction with increased revenues, higher net operating income, a clearly improved management result and stronger cash flow, which shows the strength of the portfolio.
At the extraordinary general meeting held on 20 August, it was decided that Nivika will change the financial year to calendar year. This means that Nivika will release a Q5 and a Q6 interim report to get in phase with the calendar year. It may seem like a small detail to change the financial year into calendar year, but for Nivika it is an important event. The company will now be comparable with its branch colleagues on the same report and the same quarter, which will make it easier for investors and analysts who follow real estate stocks and hopefully increase the visibility of Nivika even further.
Increased rental income and improved net operating income
The financial development for the fourth quarter shows financial stability and that the Company is gradually continuing to increase revenues and results. Profit from property management improved slightly despite the impact of the quarter of structural work that entailed one-off costs, such as cost of system changes, rescheduling of financial years and change of CEO. On a full-year basis the rental income rose by 10 percent to 676 MSEK (612) and the operating net increased by 16 percent to 481 MSEK (415). The increased operating net was mainly driven by increased income and good cost control. It is a statement of strength and proof that Nivika is doing the right things and that our business model works. The property portfolio amounts to 11.4 billion SEK (10.6) as of August 31, 2024, where two-thirds of the rental value consists of commercial properties.
During the quarter, Nivika has signed an agreement to build and lease a property on the Bredasten industrial area in Värnamo to Rudhäll Industri AB, a supply chain company within the Bufab Group. Bredasten is a connection hub both east-west and south-north where Nivika is ready with land to welcome additional companies to the area.
Equipped for growth
In the last two years, Nivika has carried out a major restructuring where the Company has had a cost focus and optimized the balance sheet. This means that now when the interest rates are on the way down, the Company is well equipped for continued growth. There is room within the financial policy to increase the secured lending and the Company has very good cooperation with several Swedish banks that want to support the growth journey. Primarily, Nivika is looking for high-yielding properties within the Company’s home markets and sees increasing activity and several interesting objects mainly in light industry. Nivika is also working on streamlining the portfolio, has completed disposals and remains open to selling properties that are not in line with Nivika’s strategy. The goal of owning a portfolio with property values of 15 billion in 2028 with 2/3 commercial properties remains.
Continued focus on earnings per share and cash flow
The key interest rate cuts that the Riksbanken, Sweden’s central bank, implemented and are expected to continue during the autumn will gradually contribute positively to Nivika’s earning capacity, cash flow and earnings per share as the Company’s fixed interest rate is relatively short. This, combined with profitable growth, will further strengthen the Company’s key figures and position us even more as an attractive company to own and do business with.
