2024-04-25 Nivika Fastigheter AB (publ) Interim report September 2023 - February 2024
Q2 December 2023 – February 2024
(Figures in brackets refer to the same period last year)
- Total rental income increased by 7 % to 168 MSEK (154)
- Net operation income increased by 16 % to 111 MSEK (96)
- The profit from property management increased to 48 MSEK (21)
- Change in value for investment properties amounted to 18 MSEK (-62) whereof realised change in valuea mounted to 0 MSEK 12)
- Comprehensive income increased to 39 MSEK (-3)
- Earnings per share 0.53 SEK (-0,05*)
- Property value amounted to 10,954 MSEK (10,506)
*) Right issue carried out in May and November 2023.3.
September 2023 – Februari 2024
(Figures in brackets refer to the same period last year)
- Total rental income increased by 7 % to 327 MSEK (305)
- Net operation income increased by 18 % to 228 MSEK (193)
- The profit from property management increased to 94 MSEK (56)
- Change in value for investment properties amounted to 53 MSEK (-244) whereof realised change in value amounted to 1 MSEK (12)
- Comprehensive income increased to 84 MSEK (-141)
- Earnings per share 1.13 SEK (-2.45*)
- Property value amounted to 10,954 MSEK (10,506
*) Right issue carried out in May and November 2023.
CEO Niclas Bergman comments:
Increased rental income and improved net operating income
The financial development for the first quarter shows that we continue to gradually increase our earnings. Rental income rose by 7 percent to 327 MSEK (305) and operating net income increased by 18 percent to 228 MSEK (193). The increased net operating income was primarily driven by increased income and cost control. The property portfolio amounts to SEK 11.0 billion (10.5) as of February 29, 2024, and consists primarily of high-yielding properties with a total yearly rental value of 718 MSEK. Two thirds of the portfolio consist of commercial properties with index-regulated contracts. after the latest index adjustment of 6.5 percent per January 1, 2024, the rents have been received according to agreement. Annual rent negotiations for residentials are completed for Nivika’s portfolio and the result is a rent increase based on use value of just over 5 percent on average. During the first quarter, a commercial property has been completed which is fully let and adds 11 MSEK in annual rental value.
High occupancy rate
It is pleasing that the occupancy rate continues to remain at a high and stable level. The economic occupancy rate was 96 percent for commercial properties and 98 percent for residential properties at the end of the quarter. In the current property market, there are ongoing opportunities for property acquisitions on attractive terms.
Our local anchoring and knowledge of the market creates new business opportunities, and we are primarily looking for acquisitions that consolidate the portfolio in existing locations and thereby create local clusters. Nivika will continue to grow profitably through the acquisition of properties with a good return. During the second quarter, Nivika has acquired four commercial properties in the Värnamo market area. The properties have so-called triple-net lease agreement and is situated in connection to the existing portfolio and were acquired with an average yield of over 8 percent.
Nivika has several inquiries and is in active dialogues regarding commercial new constructions and extensions in the company’s market, both from new and existing tenants.
Sustainability
Several energy efficiency projects have been carried out during the first half of the year as part of Nivika’s ongoing sustainability work. Among other things, we have commissioned one of our largest solar parks. I can proudly state that Nivika is in a fine second place in the magazine Fastighetsvärlden’s list of real estate companies that are big in solar energy, with 6.64 watts per square meter of installed power in relation to the managed area. A purposeful sustainability work that contributes to profitability.
Continued value growth
Parts of the property industry continue to find it challenging and we can probably expect a more volatile rental market going forward. I look forward with equal parts humility and confidence to the coming years. Nivika will continue to be well equipped for challenges as well as new business opportunities. Our properties and our organization give us a good starting point, properly managed challenges can create opportunities.
After all these years at the helm of Nivika, it now feels like the right time to leave the CEO role to devote more time to business development. However, I will remain in the role until my successor is appointed and in place at Nivika.
With a couple of strong interim reports and finances ready for growth, Nivika is well positioned to meet future challenges and opportunities in a rapidly changing market. It’s a fantastic journey that Nivika is making together with tenants, suppliers, and employees.
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 08:30 CET on 25 of April 2024.
For further information, please contact:
Niclas Bergman, CEO, phone 010-263 61 47, email: niclas@nivika.se
Kristina Karlsson, CFO & IR, phone 010-263 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 ommercial real estate and 30 % residentials. More than 90 % of the portfolio consists investment properties. The commercial properties mainly consist of industrial, warehouse, office and community service properties. www.nivika.se
