Sweden's Wallenstam nine-month profit rises on wind divestment

By Reuters News


Overview

  • Sweden property firm's nine-month rental income and profit after tax both rose yr/yr

  • Company divested all wind turbines, securing renewable electricity supply for properties

  • Company increased interest rate hedging and reduced average interest rate to 2.46%


Outlook

  • Company did not provide specific financial guidance for the current or coming periods


Result Drivers

  • WIND TURBINE DIVESTMENT - Co divested all wind turbines, securing renewable electricity supply for properties, per CEO Hans Wallenstam

  • INTEREST RATE HEDGING - Co increased interest rate hedging and reduced average interest rate to 2.46%, per CEO Hans Wallenstam


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

9M Rental Income

SEK 2.35 bln

9M Profit after tax

SEK 1.62 bln

9M Income From Property Management

SEK 1.01 bln

9M Net Asset Value Per Share

SEK 65

9M Pretax Profit

SEK 1.95 bln


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 3 "hold" and 2 "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 Wallenstam AB is SEK42.00, about 19.2% above its October 14 closing price of SEK35.24

  • The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 21 three months ago


Reuters Recommended Reads

  • Oct 15 - Sweden's Emilshus posts higher profit on stable occupancy; hikes forecast, to start paying dividend

  • Oct 14 - Sweden's SEB must hold more capital, shares fall 4%

  • Oct 14 - Sweden's Avarda Bank Q3 loans climb 20%, profit up 29%


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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