Genova Property Group

Full-year January–December 2024

• Rental income amounted to SEK 507.8m (503.0), an increase of 1%. Rental income in the comparable portfolio increased SEK 12.3m, up 2.7%.
• Net operating income amounted to SEK 369.0m (367.6), an increase of 0.4%.
• Income from property management amounted to SEK 139.5m (60.6), an increase of 130%, of which income from property management attributable to shareholders was SEK 70.8m (-22.3), corresponding to SEK 1.55 (-0.49) per share.
• Net income for the year amounted to SEK 157.2m (-416.0), corresponding to SEK 1.92 (-11.73) per share. The increase was mainly due to improved changes in the value of properties.
• Long-term net asset value attributable to shareholders increased 1% to SEK 3,273.2m (3,225.5), corresponding to SEK 72.72 (70.71) per share.
• The Board proposes to the AGM that a dividend of SEK 0.88 per share be paid quarterly for the 2024 financial year.

Fourth quarter October–December 2024

• Rental income amounted to SEK 125.2m (125.9), down 0.6%. Rental income in the comparable portfolio increased SEK 2.3m, up 2.0%.
• Net operating income amounted to SEK 85.9m (86.9), down 1.2%.
• Income from property management amounted to SEK 55.8m (18.1), an increase of 207%, of which income from property management attributable to shareholders was SEK 44.5m (-3.9), corresponding to SEK 0.98 (-0.08) per share.
• Net income for the quarter amounted to SEK 147.8m (-214.8), corresponding to SEK 2.98 (-5.31) per share.

Significant events during the quarter

• Genova refinanced bank loans of SEK 3,200m, of which SEK 350m comprised a revolving credit facility and SEK 75m an overdraft facility. The refinancing strengthened Genova’s liquidity by almost SEK 100m, with a positive impact of nearly SEK 30m on cash flow due to lower repayments.
• In October, Anna Barosen was recruited to the newly created position of Head of Sustainability at Genova. Anna Barosen is a member of Genova’s Executive Management Team. She assumed her position in January 2025.
• In November, Genova’s subsidiary Järngrinden accessed Skruven 4, a commercial property in Borås. The underlying property value was SEK 320m and the rental value amounts to SEK 25m.
• In November, new green senior unsecured bonds of SEK 100m were issued under the outstanding green framework with a coupon of 3-month STIBOR plus 375 basis points.
• In November, Genova completed a repurchase of 600,000 of the company’s own shares at a price of SEK 30m.
• In December, Genova and SBB divested their jointly owned building rights in Nacka Strand comprising about 8,800 sqm gross lighted floor area. The consideration amounted to SEK 194m.
• During the quarter, the final housing block in Norrtälje was completed, comprising 246 rental apartments with investment support.
• During the quarter, the residential project in central Enköping was completed, comprising 160 rental apartments.
• During the quarter, hybrid bonds of SEK 40m were repurchased. During the year, Genova reduced its total outstanding volume of hybrid bonds from SEK 800m to SEK 556m, and intends to continue reducing the outstanding volume.

Events after the end of the period

• After the end of the year, the final residential block in Norrtälje was divested to a joint venture in which Genova is a half-owner together with Nrep. At the divestment date, the value of the property was SEK 550m.
• In January, a 20-year rental agreement was signed with the Raoul Wallenberg School for the development of an elementary school in the Viby Project in Upplands-Bro.
• Järngrinden completed and divested Apotea’s new central warehouse in Varberg to Swiss Life. The project and the completed divestment generated a positive result of SEK 40m.
• After the end of the year, Järngrinden divested one property at an underlying property value of SEK 80m and a rental value of SEK 7m.
• In February, Anna Molén, Head of Urban Development and part of Genova's management team, resigned and will end her employment in the spring.

CEO’S STATEMENT
2024 was a year of high activity and clear recovery for Genova. We reported strong growth in income from property management per share and a stable financial position with lower borrowing costs. Due to dedicated work with financing, increased earnings from our investment properties and an attractive project portfolio, we are entering 2025 with positive momentum. We have a clear strategy to continue strengthening profitability, increase net asset value and deliver dividends to our shareholders.

Genova’s business model, which combines stable cash flows from investment properties with investments in value-creating project development, has also shown its strength in a challenging market. We now see good opportunities to increase our earnings as interest rates improve and investor interest in the housing market increases.

Improved earnings enable dividends
Genova is posting strong growth of 130% in income from property management, corresponding to SEK 140m for full-year 2024, mainly due to increased income from joint ventures and associated companies and improved net financial items. Per share income from property management amounted to SEK 1.55, compared with SEK –0.49 in the preceding year. Net asset value per share rose to SEK 72.72.

During the year, we worked purposefully to lower our borrowing costs. Measures to optimise the capital structure combined with falling market rates reduced our annual interest expense by SEK 85m and strengthened liquidity, which is evident in the earnings trend, at the same time as we created better conditions for continued growth.

The Board proposes a dividend of SEK 0.88 per share to be paid quarterly, which reflects the company’s improved financial position and view of future cash flows.

Investments in acquisitions and projects
During the fourth quarter of the year, the Tryckeriet project in Norrtälje and Korsängen project in Enköping were completed, with a total of 406 rental apartments and annual rental income of SEK 42m. The construction of residential units and premises in the Segerdal block in Knivsta is progressing as planned with occupancy scheduled for the fourth quarter of 2025. Our Upplands-Bro has commenced. As an important first step in the development of our new major development project in Upplands-Bro, with 850 residential units and a school for 600 students, we signed a 20-year rental agreement with the Raoul Wallenberg School in January 2025.

Since joining the Genova Group, Järngrinden has expanded in western Sweden as planned and completed several acquisitions of investment properties with stable cash flows. The most recent acquisition in November 2024 was a commercial property in Borås for SEK 320m with an annual rental value of SEK 25m. An improved financial market and increased activity in the transaction market are creating conditions to strategically strengthen the investment property portfolios of both Genova and Järngrinden with stable cash flows and long-term value-creating properties.

Realising value in the building rights portfolio
In 2025, we will increase our focus on realising value in Genova’s building rights portfolio, which we have created from existing investment properties through dedicated work with zoning development. The estimated excess value in the building rights portfolio is SEK 1.3 billion, corresponding to about SEK 28 per share, which is not reflected in our balance sheet. We can choose to realise the excess value through own project development or by divesting building rights, where the freed-up capital can then be reinvested in high-yielding properties. One example is the transaction in December where Genova and SBB divested building rights in Nacka Strand for SEK 194m through their joint venture, with a positive earnings effect of SEK 30m.

Looking forward
Genova is entering 2025 with a clear focus on continued growth and increased income from property management per share. On the basis of our flexible business model, we will invest in the property segment where the conditions for profitable and sustainable growth are deemed best. The conditions for this are favourable. Our balance sheet and liquidity, as well as attractive financing options, provide a solid platform from which we can capture the business opportunities we believe will emerge in a more fluid property market and a more normalised interest rate environment. Genova is well positioned to create long-term shareholder value.

Michael Moschewitz, CEO

For further information, please contact:
CEO, Michael Moschewitz, mobile +46 (0)70-713 69 39, michael.moschewitz@genova.se

About Genova
Genova Property Group AB (publ) is a dynamic property company with extensive expertise in various segments of the property market. The company aims to drive sustainable value growth through active property management, urban development, project development and property transactions in Sweden. As of 31 December 2024, Genova owned properties valued at approximately SEK 10.0 billion and the company held a substantial building rights portfolio. Genova’s share has been listed on Nasdaq Stockholm since 2020.

This information is such information that Genova Property Group AB (publ) is obligated to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, on 19 February 2025 at 8.30 a.m. CET.

Genova – Smålandsgatan 12 – SE-111 46 Stockholm – www.genova.se