John Mattson rental revenue rises 5.7% in nine months

Overview

• Sweden's residential property firm's rental revenue rose 5.7% for January-September

• Income from property management per share grew 14.6%, or 1.2% excluding a dividend

• Company repurchased SEK 77 mln of its own shares during the period

Outlook

• Company raises annual NRV per share growth target to 10% from 7%

• John Mattson maintains target of 10% annual growth in income from property management per share

• Company sees opportunities to accelerate growth through apartment upgrades and project development

Result Drivers

• RENTAL REVENUE AND COST CONTROL - Co said higher rental revenue and continued cost control led to a record-high surplus ratio

• DIVIDEND IMPACT - Income from property management was boosted by a SEK 23.6 mln dividend from Turako

• HIGHER INTEREST RATES - Co said higher market interest rates negatively affected income from property management in Q3

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the real estate rental, development & operations peer group is "buy."

• Wall Street's median 12-month price target for John Mattson Fastighetsforetagen publ AB is SEK70.00, about 28.4% above its October 22 closing price of SEK54.50

• The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 20 three months ago

Reuters Recommended Reads

• Oct 23 - Stendorren nine-month rental income rises on acquisitions

• Oct 22 - Sweden's Castellum nine-month income falls on divestments

• Oct 21 - Sweden's Wihlborgs 9-month rental income rises on new leases, projects and renegotiation

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)