Nivika Fastigheter AB (publ) Interim report September 2023 - September 2024
Q5 July 2023 – September 2024
(Figures in brackets refer to the same period last year)
- Total rental income increased by 10 % to 178 MSEK (161)
- Net operation income increased by 16 % to 139 MSEK (120)
- The profit from property management increased to 65 MSEK (55).
- Change in value for investment properties amounted to 29 MSEK (-192)
whereof realized change in value amounted to 0 MSEK (1)
- Comprehensive income increased to 5 MSEK (-129)
- Earnings per share 0.06 SEK (-1,95*)
*) Right issue carried out in May and November 2023.
September 2023 – September 2024
(Figures in brackets refer to the same period last year)
- Total rental income increased by 20 % to 735 MSEK (612)
- Net operation income increased by 26 % to 525 MSEK (415)
- The profit from property management increased to 211 MSEK (134)
- Change in value for investment properties amounted to 95 MSEK (-458)
whereof realized change in value amounted to 11 MSEK (38)
- Comprehensive income increased to 119 MSEK (-283)
- Earnings per share 1.29 SEK (-4.39*)
- Property value amounted to 11,490 MSEK (10,629)
*) Right issue carried out in May and November 2023.
CEO Sverker Källgården comments:
Real estate in Småland with increasing results
Stars are aligned for Nivika right now. Interest rates, which have been at high levels are gradually coming down and the Company’s key ratios are strengthening, the net is low and in Nivika’s home markets there are many interesting deals to count on. Nivika believes that a local presence and proximity to both customers and properties creates the most efficient organization and generates the best business. We have so far this year acquired properties for about half a billion SEK. In connection with this interim report, Nivika’s quarterly reporting will be with the calendar year and the company will be easier for analysts and investors to compare with the rest of the industry, which will increase the visibility of Nivika.
Increasing rents and good cost control creates increasing results
The financial development for the fifth quarter shows financial stability and that we gradually increase revenues and earnings. This is a sign of strength and proof that Nivika is doing the right things and that the business model works. Rental income increased by 10 percent to 178 MSEK (161), net leasing was +3 MSEK in the quarter. Net operating income increased by 16 percent to 139 MSEK (120). The increased operating net was mainly driven by increased revenue and good cost control. The profit for the quarter of 5 MSEK includes unrealized changes in the value of property portfolio of 29 MSEK (-192) and unrealized changes in value of interest rate derivatives of -69 MSEK (-2).
The property portfolio amounts to 11.5 billion SEK (10.6) as of September 30, 2024, with a total of current rental value of 766 MSEK. The property portfolio consists, at the end of the period, of 61 percent commercial properties and 39 percent residential, in terms of property value.
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 coming down, the Company is well equipped for continued growth. The Company has after the end of the period successfully issued a green, unsecured, bond, to further strengthen its cash position.
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 Company operates in Småland and the surrounding area, an area in Sweden known for Gnosjöandan, entrepreneurship and many skilled industrial companies that manage to run their business regardless of the economic climate.
Growth in the geography is driven by good communications, with the three main roads E4, highway 40 and E6, forming the West Swedish triangle. Nivika has successfully, together with Värnamo Municipality, built an industrial cluster at the South Swedish junction also known as Bredasten. It is located next to the E4 where the European highway is crossed by national road 27, which connects Karlskrona with Gothenburg via Växjö. In a short time, the area has become popular and is now the most important industrial area in the region, and several international companies have chosen Bredasten for their Swedish operations. Nivika has learned a lot from the establishment of Bredasten and is actively looking for similar areas within the West Swedish Triangle to duplicate the business model elsewhere within south-west Sweden.
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 winter will contribute positively to Nivika’s earning capacity and earnings per share. This, combined with improved net operating income and profitable growth, will further strengthen the Company’s key figures and position
This information is information that Nivika Fastigheter AB (publ) 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 herein, at 07:00 CET on 21 of November 2024.
For further information, please contact:
Sverker Källgården, CEO, phone +46 761 444 888 email: sverker.kallgarden@nivika.se
Kristina Karlsson, CFO & IR, phone +46 10-263 61 32, email; kristina@nivika.se
About Nivika
Nivika is a real estate company in Småland with focus on long-term ownership, property management and efficient new development to create profitable and sustainable value growth. The Company primarily operates in Jönköping, Värnamo, Växjö and the West coust of Sweden, areas with growth opportunities and stable rental markets. The diversified real estate portfolio amounts to app. SEK 11 billion, of whichtwo-thirdsof the rental value is commercial real estate. The commercial properties mainly consist of industrial, warehouse, office and community service properties. www.nivika.se
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