The period January-March 2025
- Rental income amounted to SEK 134m (133), an increase of 1%. Rental income in the comparable portfolio increased SEK 1m, up 1%.
- Net operating income amounted to SEK 94m (94).
- Income from property management amounted to SEK 52m (27), an increase of 93%, of which income from property management attributable to shareholders was SEK 40m (6), corresponding to SEK 0.89 (0.12) per share.
- Net income for the period amounted to SEK 70m (45), corresponding to SEK 1.28 (0.29) per share. The increase was mainly due to improved unrealised changes in value and income from divestments of properties.
- Long-term net asset value attributable to shareholders increased 1% to SEK 3,298m (3,273), corresponding to SEK 73.26 (72.72) per share.
Significant events during the quarter
- 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.
- In January, Järngrinden completed and divested Apotea's new central warehouse in Varberg. The project and the completed divestment generated a positive result of SEK 40m.
- In February, 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 February, Järngrinden divested one property at an underlying property value of SEK 80m and a rental value of SEK 7m.
- In March, a bond loan of SEK 650m was refinanced, which will reduce annual interest expense by SEK 11m and the final maturity was extended from November 2026 until July 2028.
- In March, two properties were divested with building rights of approximately 15,400 sqm in Stockholm for SEK 323m. The properties' book value amounted to SEK 303m.
- In March, one property in Huddinge was divested with newly created residential building rights for SEK 28m, corresponding to SEK 8,900 per sqm.
- During the quarter, new construction credit totalling SEK 355m was granted.
Events after the end of the period
- Anna Molén, Head of Urban Development and part of Genova's Executive Management Team, will end her employment as of 5 May.
CEO'S STATEMENT
Genova reported a positive start to 2025 with increased earnings, a good financial position and stability in our investment property portfolio, despite a turbulent business environment. For the first quarter, we recorded strong growth in income from property management and a slight increase in net asset value. Work to realise value in the building rights portfolio continued and we divested building rights in Stockholm in two transactions, thereby freeing up liquidity for new investments.
Stable earnings trend
Genova's positive earnings trend from last year continued into the first quarter of 2025. Income from property management increased 93% to SEK 52m and per share income from property management rose to SEK 0.89, compared with SEK 0.12 in the preceding year. Genova's business model is based on stable cash flows from investment properties and value creation through project and urban development. This combination creates the conditions for long-term profitable growth by adapting to market developments over time. We have a number of tools in our toolbox that allow us to focus on the property segments where the potential for sustainable profitable growth is deemed best.
Optimising capital structure
Genova continuously strives to optimise its capital structure and reduce borrowing costs. In March, we issued green bonds of SEK 650m and in parallel redeemed outstanding bonds, which significantly lowered the credit margin and decreased annual interest expenses by approximately SEK 11m. We are committed to maintaining a strong balance sheet and are working proactively to ensure diversified financing with well-balanced loan maturities.
Realising value in the building rights portfolio
One clear focus for Genova is its sustained active work with zoning plans for existing investment properties to create additional building rights. Genova's model is based on gradually realising the value of our building rights through own project development or divestment.
The estimated excess value in the building rights portfolio amounted to approximately SEK 1.3 billion as of the balance-sheet date, corresponding to about SEK 28 per share, which is not reflected in our balance sheet. In the first quarter, we realised value in the building rights portfolio through two divestments in Stockholm for approximately SEK 350m, both above book value, which will free up significant liquidity for new property acquisitions with high returns or development potential.
Value-creating investments
The year began with a high level of activity in all business areas. After completing our construction projects in Norrtälje and Enköping in the fourth quarter of 2024, we are now fully focused on Genova's next urban development project in Upplands-Bro, Viby, featuring housing, service premises and a school, for which we signed a 20-year rental agreement and also secured financing during the quarter.
Stable investment property portfolio
Genova's portfolio of investment properties is characterised by stability, with over 60% of rental income derived from publicly funded tenants, residential units and grocery retail in growth regions. This entails a low operational risk, which is particularly important in light of the current geopolitical uncertainty and the outlook for the broader economy. The occupancy rate amounts to 92%, including certain properties with clear project elements, and we have not observed any impact from our tenants related to the ongoing turbulence.
Looking ahead
Despite an uncertain environment, we see good opportunities for Genova in 2025. With a balanced portfolio of stable cash flow properties, growth opportunities in our project and urban development operations and a good financial position, we are well positioned to capitalise on business opportunities and increase earnings. We have a proven ability to deliver growth in income from property management and net asset value per share. This is something we will continue to do.
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 March 2025, Genova owned properties valued at approximately SEK 9.5 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 5 May 2025 at 9.30 a.m. CEST.
Genova - Smålandsgatan 12 - SE-111 46 Stockholm - www.genova.se