Pandox

High business tempo and good growth

July-September 2024

• Revenues for Leases amounted to MSEK 1,069 (1,040). For comparable units in fixed currency, the increase was 2 percent
• Revenues for Own Operations amounted to MSEK 804 (844) MSEK. For comparable units in fixed currency, the increase was 9 percent
• Net operating income for Leases amounted to MSEK 933 (920). For comparable units in fixed currency, the increase was 1 percent
• Net operating income for Own Operations amounted to MSEK 226 (222). For comparable units in fixed currency, the increase was 15 percent
• EBITDA amounted to MSEK 1,123 (1,102), an increase of 2 percent
• Cash earnings amounted to MSEK 582 (558), equivalent to SEK 3.14 (3.04) per share
• Unrealised changes in value Investment Properties amounted to MSEK 12 (-93). Unrealised changes in value Operating Properties, reported for disclosure purposes only, amounted to MSEK 190. Unrealised changes in value of derivatives amounted to MSEK -489 (43)
• Profit for the period amounted to MSEK -39 (460), equivalent to SEK -0.24 (2.48) per share
• On 28 August, three central London aparthotels were acquired and accessed for approximately MGBP 230
• On 4 September, Pandox entered an agreement to acquire DoubleTree by Hilton Edinburgh City Centre for MGBP 49, which was gained access to on 1 October
• On 18 September, a directed share issue of approximately 10.75 million B shares was completed, raising approximately MSEK 2,000

January-September 2024

• Revenue for Leases amounted to MSEK 2,923 (2,762)
• Revenue from Own Operations amounted to MSEK 2,317 (2,249)
• Net operating income for Leases amounted to MSEK 2,496 (2,388)
• Net operating income Own Operations amounted to MSEK 573 (493)
• EBITDA amounted to MSEK 2,945 (2,754)
• Cash earnings amounted to MSEK 1,414 (1,327), corresponding to SEK 7.67 (7.22) per share
• Changes in property values amounted to MSEK 437 (-768) and unrealised changes in the value of derivatives amounted to MSEK -199 (31)
• Profit for the period amounted to MSEK 1,125 (545), corresponding to SEK 6.02 (2.87) per share
• The loan-to-value ratio was 45.1 percent and the interest coverage ratio, rolling twelve months, was 2.6x

Comment from CEO Liia Nõu

"Both of our business segments saw good growth during the quarter. Total revenue and net operating income increased by 5 and 3 percent respectively for comparable portfolios in fixed currency. Cash earnings per share increased by 4 percent and EPRA NRV growth was 4 percent, measured on an annualised basis, and adjusted for dividends paid out in April and new share issue proceeds in September."

"The main highlight of the quarter was the acquisition of three modern and highly profitable "aparthotels" (Residence Inn by Marriott) in central London for around MGBP 230. The acquisition gives us increased exposure in an attractive hotel segment. The hotels are initially expected to contribute around MGBP 34 in revenue and MGBP 17 in net operating income, measured on an annualised basis, equivalent to a yield of more than 7 percent. We are predicting additional yield potential over time."

"We are expecting stable demand in the hotel market in the fourth quarter and a normal seasonal pattern, with demand decreasing as usual during the second half of December before picking up again from mid-January. The new opening of Citybox Brussels and Scandic Go Sankt Eriksgatan 20, as well as the acquisition of Residence Inn by Marriott and DoubleTree by Hilton Edinburgh will provide a clearly positive contribution to net operating income in the four quarter."

Presentation of the interim report
Pandox will present this interim report to investors, analysts and the media in a conference call webcast on 24 October 2024 at 08:30 CEST. As a service to Pandox's stakeholders there will also be an external update on the hotel market.

If you wish to participate via webcast, please use the following link:
https://tv.streamfabriken.com/pandox-q3-report-2024

If you wish to participate via teleconference, please register via the following link: https://conference.financialhearings.com/teleconference/?id=50048984

Attachment: Interim report January-September 2024

FOR FURTHER INFORMATION, PLEASE CONTACT:
Liia Nõu, CEO, +46 (8) 506 205 50
Anneli Lindblom, CFO, +46 (0) 765 93 84 00
Anders Berg, SVP Head of Communications and IR, +46 (0) 760 95 19 40

This information is information that Pandox AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted, through the agency of the contact persons set out above, for publication on 24 October 2024 at 07:00 CEST.

About Pandox
Pandox owns, develops, and leases hotel properties to skilled hotel operators under long-term, turnover-based leases with minimum guaranteed levels. Since our inception in 1995, we have grown into one of the largest hotel property owners in Europe. Our portfolio consists of 161 hotel properties with approximately 35,600 rooms across 11 countries in Northern Europe. The portfolio's market value is approximately SEK 70bn. The head quarter is in Stockholm, and we are listed on Nasdaq Stockholm.  www.pandox.se