Logistia Reports Robust Growth and Improved Financial Metrics in Q1 2025
Logistia, a leading Nordic real estate company focused on logistics and industrial properties, reported solid financial results for the first quarter of 2025. The company's portfolio value reached 14.2 billion Swedish kroner, up from 13.5 billion Swedish kroner in the previous quarter, reflecting its continued growth and strategic acquisitions.
Highlights of the quarter include a 229% year-over-year increase in income from property management, reaching 229 million Swedish kroner. Notably, the percentage increase in income from property management outpaced the growth in net operating income (NOI) and overall income. The company also reported a 54% increase in income from property management per share compared to the first quarter of 2024.
Logistia's portfolio demonstrated stability with an average remaining lease term of 9.3 years and a net initial yield of 6.8%. The company's balance sheet remained healthy, with a low loan-to-value (LTV) ratio of 48.3%.
During the quarter, Logistia acquired three new properties valued at over 1 billion Swedish kroner, fully leased with a weighted average lease term (WALT) of nine years and a combined acquisition yield of 8.5%. These acquisitions are expected to contribute 12% to the run rate income from property management per share.
The company's tenant mix saw minor changes, with the addition of new shopping municipality tenants and a 2 percentage point decrease in the BVB share to 29%. High occupancy rates of 97.1% and a prevalence of triple net and index-linked leases further strengthened Logistia's portfolio.
Financially, Logistia's revenues increased by 200 to 248 million Swedish kroner, while the operating margin improved to around 88%. The adjusted operating margin, excluding rent supplements, reached 94%, up from 90% a year ago. The net operating income increased by 177%, driven by the expanded property portfolio.
Logistia continued to actively manage its loan portfolio, decreasing the weighted average interest rate by 20 basis points and benefiting from lower reference rates and improved bank margins. The company's financial targets and risk limitations remained solid, with a expected loan-to-value ratio of around 50% going forward.
Looking ahead, Logistia expressed confidence in the investment opportunities available in the Nordic real estate market and its ability to continue delivering value to shareholders through strategic acquisitions and efficient capital management.
This summary was written by our AI Analyst Tim! If you find something that does not seem right let us know and we will correct him
Good morning and welcome to the presentation of Logistia's first quarter of 2025. Presenting as usual is myself, Niklas Ökman and Filip Lovgren. We'll be happy to answer any questions you might have after the presentation. We have continued to grow the company and we will present the most recent acquisitions shortly. The portfolio is valued at 13.5 billion SEK, and if adding the most recent transaction, we're up at 14.2 billion SEK. We continue to show low rents per square meter at 669 kroner, and the occupancy rate is up to 97.1% from 96.9% the previous quarter. the reported NRV per share is 15.4 and we continue to have a very low LTV at 48.3% highlights for the first quarter include income and I and income from Property Management that is up as you can see between 123 and up to 229% compared to the first quarter of 2024. We're happy to present that the percentage increase of income from property management is higher both than the NOI and the income. And maybe more importantly, we're very happy to present the 54% increase from income from property management per share. We continue to own a portfolio with stable income. Our leases runs in average for another 9.3 years. The net initial yield is flat at 6.8% and we have a very healthy balance sheet with low LTVs. We've so far added the properties to the right. As you can see, at a total value of more than 1 billion SEK, the properties are fully leased with a WALT of nine years, and the combined acquisition yield is 8.5%. And this should be compared to our average cost of debt, which is 4.8% and new financing in Sweden at approximately 4%. We continue to see interesting investments in all of the Nordic market, and we have a very good pipeline. And a few words on the individual properties. The new shipping properties we presented at our last earning call, the property in Stavanger comprise a bit more than 31,000 square meters, and is fully leased to home brands on a 15-year triple net lease. The Malmberget property is leased to Goldpund and Skorne Stads on leases that runs a bit more than five years. And looking at what impact this has on the run rate. So adding these three investments, we can see that we're adding 12% on the income from property management per share. And as said earlier, we continue to see good investment opportunities adding value to the company. And we're looking at the run rate, you can see that we're up 10% between last quarter of last year and this quarter. And this includes the negative effects from FX, or that will explain in more detail on the coming slides. Looking at the portfolio and the tenant mix, the main changes compared to last quarter is that we have added new shopping municipality and that the BVB share has decreased two percentage points since year end down to 29%. Otherwise, I can see high net initial yields throughout and long leases and very long leases when looking at the portfolios outside of the Nordics. Percentage of triple net and index leases remain very high. And occupancy, as we mentioned, is slightly up between the last quarter of last year and this quarter. We report a minor negative letting for the quarter of 1 million sq. And the vault is still long at 9.3 years. As for the market, we continue to see decent transaction volumes in Sweden and Denmark, whereas Norway and Finland has been slow the first months of this year. One should though remember that the transaction market for logistics industrial compared to other asset classes stands out as quite robust still. And with that, I leave the word to Filip to go through the financials. Thank you. Starting off, our revenues for the first quarter increased 200 to 248 million. The revenues in the Like4Like portfolio are close to 1% down, affected by a lower economic occupancy rate in that portfolio. Worth to mention is that the like for like portfolio is equal to 39% of our total income. The estimates from our five equity analysts following us was 255 million for the quarter. The main reasons that the revenue was lower was 4 million less rent supplements, which affected both the revenues and the property expenses, but also a 3 million negative effect from FX rates. The operating margin increased to around 88%, and the adjusted operating margin, where we exclude the rent supplements from the revenues, came in at 94%, an increase from 90% a year ago. And the net operating income increased by 177% relating to the increased property portfolio. We saw a 2% drop in the like for like portfolio, which is also related to the lower occupancy rate in the like for like portfolio. The estimates for the net operating income were 216 million, the same as the actuals, though we had the negative effects from the FX. And looking at the property from property management, which increased to 107, of 15 million compared to the estimated 111. The higher actual is linked to a lower net financial income since we have focused a lot on the loan portfolio for the past quarters to decrease the average interest rate. Profit from property management per share increased by 32% on the last 12-month basis, and the increase for the quarter compared to the first quarter of 2024 was 54%. Looking at the financial key figures at the end of the first quarter, we have a solid and stable loan to value ratio of 48% and secured loan to value ratio of 42%. We've increased the interest hatching ratio during the quarter from 67 to 74%. where we saw good opportunities before the five-year swap rate took off. The interest cover ratio came in at 2.2 times for the last 12 months. Looking at the interest capacity on the balance sheet day, the estimated interest cover ratio is about 2.4 times. The EBIT, EBIT margin, EBITDA, EBITDA margin in the audio. 15.3 to 15.4 for the quarter affected by FX changes. If we exclude the 126 FX loss in the OCI, we would have a NRV per share of 15.7. The main part of the 1.3 billion bank debt maturing within 12 months will in short be prolonged with slightly better terms and at at the same time a longer maturity of around four years. As I will present on the next page, we have continued to decrease our weighted average bank margin, which will probably continue for some time going forward. As I have indicated before, we've continued to be active in our loan portfolio. We have very good dialogues with our existing banks. And during the quarter, we've raised bank financing for acquisitions and we've also refinanced bank loans of around 170 million with 90 bps drops in margin. We've also managed to tap on our existing green bond loan of 250 million on the same terms, which is 275 bps plus steel bond. The 20 BPS decrease of our weighted average interest rate are related to lower margins in the existing debt portfolio, new loans with lower margins and lower reference rates. Last but not least, looking at our financial targets and risk limitations, we're presenting solid numbers in line or better than expected. We've been active in both the transaction market, but also in the capital market, which have affected the profit from property management per share positive. The NRV per share was slightly affected by FX rate, but was up from the previous quarter. We are expecting to have a loan to value ratio of around 50% going forward without risking negative effects on the interest cover ratio. And that was all for me. Good. And to summarize, and as Philip mentioned, we're reporting stable and improved numbers throughout the transactions we have undertaken or improving the income from property management per share. And we continue to see good investment opportunities in the Nordic real estate market. At this slide, you can see that to the top, you can see that first of all, that the portfolio has in terms of value has increased. And maybe more importantly, you can see that the yield gap is improving quarter over quarter. So we're now reporting a net initial yield of 6.8% and a cost of financing of 4.8%. And with that, we open up for any questions. To ask a question, please dial pound key 5 on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial pound key 6 on your telephone keypad. The next question comes from Jan Ierfelt from Kepler Cheuvreux. Please go ahead. Okay, good morning. I have three questions. First one is really the bridge between rental income in the fourth quarter and the first quarter. And in the fourth quarter you reported clean rental income X supplements to $231 and this quarter $230 actually a decrease of 1 million. At the same time I'm seeing positive effects from indexation and shipping all in source. So how do I come up to the reported level you had in the first quarter? I know there's a 3 million or something in that range negative currency effect, but it looks a little bit low your rental. income. That's correct. So 230 million in income excluding the rent supplements. And that's due to both the FX loss and also a slightly lower occupancy rate in the like for like portfolio where we had bankruptcy in the third quarter of 2024. Okay. And second question, Arling Source, how much did that contribute in the quarter? Around 4 million in income per quarter for the project. Yeah. And if you look at your investments in your management portfolio was 46 million this quarter. Is it a, are you on a run, run right now that we could expect for the rest of the year? Yes, one could say in the existing portfolio, then obviously we're looking to do, you know, one or two projects a year. And Arling Source, as you mentioned, is one of those. And the InterSport is another one. And then the numbers would be larger. for the investments in the existing portfolio, then that's probably a good number for the future as well. So the remaining investment of the Intersport property is 173 million by the end of the quarter. And that's expected to be finalized in December 2025 this year. okay. And my last question regards your bank margins. You have come down quite a lot. And are you expecting further decrease the bank margins or have you reached a level now that you think you will be also applicable to the future? We, as we've shown during the Autumn, we have managed to take down the bank margins. quite a lot throughout. But as Philip mentioned, we are still in discussions with some of the banks in order to get margins down even further. We don't have a sort of estimating in terms of percentage points or million sick, but it's an ongoing process and we've done a lot, but we've said that we will continue. We believe that there are more to be done on the margins and on the the total cost of debt overall. Okay, thanks for taking my questions. Thanks. The next question comes from Frederik Stenzved from ABG Sundal Collier. Please go ahead. Thanks. Morning, Nicholas. I'm Philip. My first question is on the bankruptcies. You do write in the report that it was re-let, most of it at least, during the quarter. Is there some kind of timing effect here, meaning the bankruptcy came early in the quarter and the letting was in the end of the quarter? That's my first question. And then secondly, on the same theme of bankruptcies. I believe in previous conference calls and similar presentations, you have sort of commented that you think bankruptcies going forward will be slightly lower because you don't have sort of the same level of struggling tenant as you might have had a year ago. Do we have an update here or do you have any sort of struggling tenants and what should we expect of bankruptcies going forward? To start with the bankruptcy that we have had, it could be a month or two in terms of time, but not more than that. And if I remember correctly on that premises alone, we're losing 0.6 million for 0.4 4 million in rent. So the new rent is 0.4 million lower than the old one. And they've started to pay rent already, the new tenant. As for bankruptcies overall, we continue or what we've said the previous call, that's the feeling that we still have, that the number of bankruptcies is lower and the number of tenants being late with rents, etc. is slower and improving over time. So that feeling is the same now compared to three months ago. And just adding on this, so this tenant that went into bankruptcy, it wasn't a big surprise for us. It was one of those tenants that we had on our, so to say, short list to survey. Great, thanks. And then second question or maybe third if you count the first one as two. On future acquisitions, you do have announced quite a bit so far this year. I do realize that you have quite a large cash position as of quarter end. I'm fully aware that some of the sort of completions were in early April. But how should we think about sort of the acquisition tempo going forward? No, but you're correct in the sense that we still have called it firepower to do more. with that said, obviously we should only do good deals and, and we have a good pipeline of what we believe are really good deals. But, but there is no sort of, no set targets for before the summer, for instance, or for the full year, but, but still Firepower. And, and one should expect us to do more, you know, call it within the medium to short term. Perfect, thank you very much. Thank you. The next question comes from Emil Ekholm from Pareto Securities. Please go ahead. Good morning, Niklas and Filip. A few questions from me. First one circling back to the last one there from Fredrik. you had 586 million in cash at quarter end. How much of that has been used so far in April last year? Close transactions. Yeah, let us give you an exact number. So, yeah, but that's before. So to give you a broad number, calculate with sort of 55% LTV for the properties in Stavanger and Malmö, meaning two $240 plus $75 million, so to say, used already. Okay, that's fair. Perfect. Thanks. And also you mentioned a short list for tenants on bankruptcies. How large is that short list? Can you give an indication of how many risky tenants you have in in terms of rental value? Nobody, it's short and maybe I shouldn't use the word very short, but it's becoming short to the extent that we're talking very small tenants, if anything, on that list. It doesn't mean that something new could pop up, but when looking at the current situation, the list is short and especially when talking rental income in, so it's improving and it's short. And as Philip said, the bankruptcy that we saw during the first quarter, that was probably the last, you know, large, it's not a large tenants, but it's substantial amount of money when we're talking two, three million. Sounds good, thanks. And lastly, you had some negative impact from FX this quarter. What's your view on either divesting non-Nordic assets and concentrating the portfolio to the Nordics? Or maybe what's your possibility on raising debt in Euro in order to mitigate some of the FX risk? Maybe starting with the latter question. So we have secured bank financing in Belgium, which is good. We have not secured in Poland, Germany and the Netherlands and there are ongoing discussions we've come a bit further in one of those markets. So what we've said in the past, if we can secure good bank financing, and obviously that will give us more fire power when it comes to doing new transaction, and also as you mentioned, it will give us better security when it comes to FX, then we could probably hold on to those properties for now. But we have also said that if we cannot get proper or good bank financing, then the question is if that's, you know, is the effect risk too large for us? And with that said, one could look at optimizing the portfolio. But for now, we are in fairly good discussions. And as I said, in one of the countries, we've come pretty far, I would say. Yeah, makes sense. Thank you. can you give an indication on margin levels on those types of debt comparing to Swedish banks? Not really. We're in, as I said, in discussions with the banks and no, we won't. But overall, what could say that looking at the European assets, margins are probably slightly higher compared to the Nordics, but we're not talking any massive changes at all. slightly higher, but yeah. Yeah, that's enough. Perfect. Yeah, thanks. That's all for me. Thanks. Question comes from Frederik Stensved from ABG Sundal Collier. Please go ahead. Yes, thanks. Apologies for jumping in twice here, but on the earnings capacity. I mean, you have one which is per quarter end or 1st of April and one as of today. Are there different FX assumptions in these two rows and which FX assumptions have you used? No, so the earnings capacity for today's date is just a copy of the earnings capacity from the balance sheet date plus the, so to say, profit from property management for the Stavanger and Malmö deals transactions that we've completed now in April. So no estimations regarding FX changes. Great. So do both of them use today's FX or do both of them use the FX from first of April? so we've taken down the Stavanger property with the today's FX, so to say. Right. And for the total portfolio, I guess not, not for the Acquisitions specifically, but the total standing portfolio that you already own is that. the effects from quarter end or from today? Quarter end, yes. Perfect. Thank you. If you wish to ask a question, please dial pound key five on your telephone keypad. more questions at this time. So I hand the conference back to the speakers for any written questions and closing comments. Good. Nobody, there seem to be no written questions. So I think we say thanks for to everyone that has listened in and thanks for the questions. And if there are any following up questions, obviously let Philip or myself know and we'll do our best to answer those as well. So thank you and have a good day. Thank you.
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