Fastighetsbolaget Emilshus AB (publ) Interim Report January–September 2024

The period January–September 2024

• Income increased 10% to MSEK 493 (446).
• Profit from property management increased 20% to MSEK 212 (176).
• Profit from property management per ordinary share increased 9% to SEK 1.71 (1.57) per ordinary share.
• Profit for the period amounted to MSEK 165 (77), corresponding to SEK 1.26 per ordinary share (0.50).
• Value adjustment of investment properties impacted earnings by MSEK 52 (–43).
• Value adjustment of financial instruments impacted earnings by MSEK –35 (–14).
• Cash flow from operating activities before changes in working capital increased 31% and amounted to MSEK 188 (143).
• Net investments totaled MSEK 1,087, of which
• MSEK 1,046 pertained to property transactions.

The quarter July–September 2024

• Income increased 16% to MSEK 173 (149).
• Profit from property management increased 25% to MSEK 76 (61).
• Profit from property management per ordinary share increased 6% to SEK 0.58 (0.55) per ordinary share.
• Profit for the period amounted to MSEK 13 (41), corresponding to SEK 0.03 per ordinary share (0.33).
• Value adjustment of investment properties impacted earnings by MSEK 4 (–3).
• Value adjustment of financial instruments impacted earnings by MSEK –55 (–1).
• Cash flow from operating activities before changes in working capital increased 34% and amounted to MSEK 67 (50).
• Net investments totaled MSEK 165, of which MSEK 156 pertained to property transactions.

Unchanged forecast for 2024

• For 2024, it is estimated that profit from property management with the current property portfolio and announced acquisitions will total MSEK 290. This forecast was announced in conjunction with the presentation of the January–June 2024 interim report.

Significant events during the quarter

• In September, Emilshus repurchased outstanding bonds amounting to MSEK 210 through early redemption, which took place for the purpose of managing forthcoming liability maturities and improving Emilshus’s profit from property management.
• Three fully leased properties in Norrköping and Kalmar were acquired for MSEK 156 and were accessed in Sep-tember. The properties encompass 10,126 sqm of leasable area and 22,851 sqm of freehold land. The annual rental value amounts to MSEK 13 with an average remaining lease term of ten years.

CEO’s statement – Continued profitable growth  

In the January–September 2024 period, income increased 10% to MSEK 493 and profit from property management rose 20% to MSEK 212 compared with the year-earlier period. Cash flow from operating activities increased 31% during the period to MSEK 188.

During the period, growth in profit from property management per ordinary share amounted to 9%. Corresponding growth for LTM was 14%. In May, Emilshus carried out a new share issue of MSEK 384, which has not yet been fully utilized, for property acquisitions and investments. Given a net loan-to-value ratio of 51%, Emilshus has good conditions for acting when the right transactions are available.

The full-year 2024 forecast for profit from property management remains unchanged at MSEK 290.

Property acquisitions and strengthened financing
Emilshus is growing through selective acquisitions in combination with continual efforts at optimizing the company’s financing.

In the third quarter, two properties in the light industry category in Norrköping, and one property in the big-box retail category in Kalmar – all fully leased – were acquired. The properties acquired have an aggregate annual rental value of MSEK 13 and an average remaining lease term of ten years. These acquisition thereby strengthen our local property management units, which increases operating efficiency.

To reduce our financial costs, in September an early redemption of bonds was carried out for MSEK 210, which runs at an interest rate of Stibor 3 months + 7.25%, maturing in September 2025. Early redemption will improved the company’s profit from property management at the same time as Emilshus’s debt maturities are being proactively managed.

Focus on energy efficiency in property management
In property management, efforts are continuing to reduce the company’s energy use and several projects are under way, including upgrades to ventilation systems and conversions to LED
lighting. In addition, a large investment in solar panels in Norrköping will begin soon. We can make a difference by looking at the potential for energy improvements of each individual building.

Being a landlord with local presence is a key element of Emilshus’s business philosophy. This puts requirements on our property management organization, but at the same time it is facilitated by our growth being focused in regions where Emilshus already operates or where we see many opportunities for establishing new property management units.

We noted that demand for Emilshus’s premises remained stable during the quarter, and reported an unchanged occupancy rate of 95%.

Our growth is aimed at building a financially strong and profitable property company with a local presence, stable cash flows from high-yield properties with a high occupancy rate and long-term leases.

This is how we create a robust property company with strong key figures.

Växjö, October 2024
Jakob Fyrberg, CEO

Report presentation
Telephone conference (only in Swedish)
When: Wednesday October 16, 09.00.
To call in and ask questions call: +46 8 5016 3827 then enter Meeting ID: 885 7638 5273#.
To ask the CEO/CFO a question, please press *9 on the phone.

The presentation is webcasted (only in Swedish)
Link to webcast:

Emilshus – Q3 Presentation 2024

The presentation and webcast will be available at www.emilshus.com following the conference call.

For more information, please contact:
Jakob Fyrberg, CEO
E-mail: jakob.fyrberg@emilshus.com
Telephone: +46 (0)70-593 95 96

This information is information that Emilshus is obligated to disclose in accordance with the EU Market Abuse Regulation. This information was submitted for publication through the agency of the contact persons below on October 16, 2024 at 7:30 a.m. CEST.

This document is a translation of the Swedish original report. In the event of discrepancies, the Swedish original will supersede the translation.

About Emilshus
Emilshus is a property company rooted in the business culture of Småland that acquires, develops and manages high-yield commercial properties, with southern Sweden as its core market. The company’s property portfolio at September 30, 2024 totaled 898 ksqm of leasable area distributed among 160 properties with an emphasis on light industry, industrial services/trade suppliers and big-box and grocery retail. Emilshus’s ordinary share and preference share are listed on Nasdaq Stockholm.

Emilshus – Storgatan 10 – 352 31 Växjö – www.emilshus.com