Intea Fastigheter

CEO Charlotta Wallman Hörlin and CFO Magnus Ekström will present the year-end report in a webcast at 3.30 p.m. CET at https://www.finwire.tv/webcast/intea/year-end-report-2024.

Subsequent questions can be posted directly to CFO Magnus Ekström by e-mail: magnus.ekstrom@intea.se

January – December 2024

• Rental income increased by 13.6 percent (15.1) and amounted to SEK 1,201 million (1,057), which SEK 91 million (11) comes from project properties. In a like-for-like portfolio, rental income increased by 6.7 percent.
• Profit from property management increased by 6.0 percent and amounted to SEK 536 million (506).
• Changes in the value of investment properties totalled to SEK 166 million (-893), of which SEK 53 million (47) was attributable to project properties.
• Profit after tax for the year amounted to SEK 591 million (-639).
• Profit/loss for the year attributable to the shareholders of the parent per Class A and Class B share totalled SEK 3.07* (-5.04) and per Class D share SEK 2.02* (2.00).
• Total investments in existing investment properties for the year amounted to SEK 1,457 million (1,661).
• The property value at year-end was SEK 23.6 billion (21.4).
• The Board proposes a dividend of SEK 0.50 per Class A and Class B share (0.90). The Board also proposes a dividend of SEK 2.00 per Class D share (2.00) with a quarterly payment of SEK 0.50.

October – December 2024

• Rental income increased by 14.6 percent (13.3) and amounted to SEK 316 million (276), of which SEK 34 million (10) comes from project properties. In a like-for-like portfolio, rental income increased by 3.9 percent.
• Profit from property management increased by SEK 51.2 percent and amounted to SEK 156 million (103).
• Changes in the value of investment properties totalled SEK 81 million (-598), of which SEK 6 million (-77) was attributable to project properties.
• Profit/loss after tax for the period amounted to SEK 363 million (-734).
• Profit/loss for the period attributable to the shareholders of the parent per Class A and Class B share totalled SEK 2.06* (-5.02) and per Class D share SEK 0.51* (0.50).
• Total investments in existing investment properties for the period amounted to SEK 378 million (594).

*No dilutive instruments are present.

Significant events during the quarter

• On 12 December 2024, Intea’s Class B and Class D shares were listed on Nasdaq Stockholm. The price per Class B share was set at SEK 40.00 in connection with the listing. The price per Class D share was set at SEK 27.50, corresponding to a yield of 7.3 percent.
• In October, Intea acquired an ambulance centre in Sköndal with a lettable area of 1,600 sqm. The underlying property value in the transaction was SEK 95 million before deduction of deferred tax.
• In October, Intea entered into an agreement with lenders to refinance a backup facility of SEK 1,000 million that would have matured in October.
• In October, Intea acquired a police facility in Gothenburg. The lettable area is estimated to be around 22,000 sqm after completion of new construction and renovation projects. The underlying property value in the transaction was SEK 747 million before deductions for deferred tax and project costs.
• In October, Intea acquired a health care property with a lettable area of 1,410 sqm. The underlying property value in the transaction was SEK 46 million before deduction of deferred tax.
• In October, Intea entered into an agreement to acquire a new custody unit under construction in Västerås with a lettable area of 34,600 sqm. The underlying property value in the transaction was 620 million. Costs incurred in projects totalled SEK 200 million at the time of the acquisition agreement. Closing is planned for Q2 2025, subject to fulfilment of the closing conditions.
• In October, Intea entered into an agreement to acquire a prison in Kristianstad with a lettable area of 7,000 sqm. The underlying property value in the transaction was SEK 135 million. Closing is planned for Q1 2025.

Significant events after the end of the quarter

• In January, Intea signed a new six-year lease with the Swedish Police in Linköping. The lease pertains to just over 4,200 sqm, with the annual rent projected to be around SEK 9.2 million, indicating a rent increase of approximately SEK 3.4 million compared with the current annual rent for the existing lease. Closing is expected to occur in late 2025 or early 2026.
• In February, Intea and the Swedish Prison and Probation Service agreed on a lease to expand Kristianstad Prison by 10,000 sqm, with an option for an additional 3,200 sqm. The term of lease is 25 years with an estimated annual rental value of SEK 39 million. The project is expected to be completed in the second quarter of 2026.
• In February, Intea assigned a custody unit project in Gävle covering just under 22,000 sqm of lettable area. It will include 110 detention rooms, offices, and premises for the national transport unit. The lease agreement runs for a period of 25 years from completion. The annual rental value is based on the total costs incurred in the project and is currently estimated at approximately SEK 96 million. The total investment is estimated to approximately SEK 1,450 million.

The CEO´s comments

The December listing of Intea’s shares on Nasdaq Stockholm represented a key milestone in the company’s history. Both institutional investors and the general public demonstrated strong interest, and the offering was oversubscribed multiple times. It is gratifying that the price trends after the listing have been positive and relatively stable. We extend a warm welcome to all our new shareholders, especially our anchors investors who played a key role in shaping the transaction: Tredje AP-fonden, AFA Försäkring, Swedbank Robur, Länsförsäkringar Fondförvalting and Bell Rock Capital Management. With the listing behind us, we have bolstered the company´s financial position and set the stage for continued growth. We recognise promising opportunities to help address the high demand for high-quality, tailored facilities that is present in several of Intea´s areas of operation.

We have ended the year on a strong note, with an increase in rental income and net operating income of 13.6 percent and 15.2 percent, respectively, over the previous year. Profit from property management reached SEK 536 million, reflecting a 6.0 percent increase from the previous year, despite rising financing costs related to increased project activity in a higher interest rate climate. Growth in profit from property management per Class A and Class B share was 5.5 percent for the full year.

Charlotta Wallman Hörlin, CEO