January - March 2025
(Figures in brackets refer to the same period last year)
- Total rental income increased by 15 % to 189 MSEK (165)
- Net letting was 7 MSEK (5)
- Net operation income increased by 17 % to 128 MSEK (109)
- The profit from property management increased with 32 % to 52 MSEK (39)
- Change in value for investment properties amounted to 4 MSEK (21)
whereof realised change in value amounted to 0 MSEK (3)
- Comprehensive income increased to 56 MSEK (60)
- Earnings per share 0.59 SEK (0,73)
CEO Sverker Källgården comments:
Strong start to 2025
The first quarter of this year resembles the end of 2024 with continued war in Europe, major geopolitical unrest, volatile markets and financial unrest throughout the world. The uncertainty about which direction both the economy and interest rates in the US and Europe are heading affects everyone and it is important to have a business model that works over time.
Nivika delivers a strong quarter despite this concern, we continue to grow through acquisitions and the focus on more high-yielding properties is yielding results in the Company's key figures. Rental income as well as net operating income and property management profit are all on the rise, which shows that our strategy is working. The mix of high-yielding properties and modern attractive homes provides a stable cash flow, which is also reflected in the occupancy rate, which is above our target.
The focus on high-yield properties is reflected in the numbers
The financial development for the quarter shows financial stability and that we gradually continue to increase revenues and results. Rental income rose by 15 percent, net operating income by 17 and property management profit increased by 33 percent compared to the corresponding period last year. Current cash flow also increased by 21 percent. This is a statement of strength and proof that Nivika is doing the right things and that the business model is working.
Growth
The growth during the quarter has taken place through the acquisition of high-yielding properties along the western Swedish triangle at very good yield levels. Nivika can make deals that contribute to earnings capacity, cash flow and earnings per share because the Company is local and the natural buyer of warehouse and light industrial properties along the West Swedish Triangle. The network grows with each deal Nivika makes in all four markets the Company is active in and we are often contacted about potential deals. The acquisitions have been financed with the proceeds from the bond issued in November 2024, as the acquisitions have been made continuously, the full effect will be achieved in the coming quarters, which is visible in the interest coverage ratio, which decreases slightly during the quarter. In most deals, Nivika has partially paid for the acquisitions with repurchased shares, it is gratifying that the sellers believe in Nivika and are positive about taking shares as partial payment.
Letting has been strong during the quarter with a positive net letting of SEK 7 million. Among other things, Nivika has leased out a large vacant premises in Torsvik outside Jönköping to a previous tenant who has now chosen to move his business back to the property. There is no increase in vacancy rates on the residential side from the previous quarter either. The organization has close dialogue with the tenants and although there has been no increase in unpaid rents so far, we are focusing on this to minimize any customer losses.
During the spring, a number of the building projects we are now carrying out will be completed, among others Nivika's new headquarters, a conversion to Sordin and the new construction of an electric car charging station at Bredasten in Värnamo. The projects are going according to plan and will contribute positively to our results.
Financing
During the quarter, work on structuring the loan portfolio has continued, we have signed additional interest rate hedges to mitigate any fluctuations in the interest rate market. The acquisitions that have been made are now financed with bank loans to free up additional capital for growth. The average interest rate on the loan portfolio has fallen to 4.3 percent.
Sustainability
During the quarter, Nivika continued to work on energy efficiency improvements, which resulted in improvements in energy classifications in the portfolio. Work also continued towards a connection to SBTi.
Focus on continued growth and letting
We live in a turbulent world, but despite this, I look forward to the rest of the year, we have positive momentum regarding growth and the market is there. Nivika has a very good reputation as a company that is easy to do business with, we keep our promises and do not enter into negotiations that we do not intend to complete. The focus is on increased cash flow and earnings per share to create additional shareholder value through
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 07:00 CET on 8 of May 2025.
For further information, please contact:
Sverker Källgården, CEO, phone +46 10-263 61 61, email: sverker@nivika.se
Kristina Karlsson, CFO & IR, phone +46 10-263 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 12 billion, of whichtwo-thirds of the rental value is commercial real estate. The commercial properties mainly consist of industrial, warehouse, office and community service properties. www.nivika.se.
