Ovaro Kiinteistösijoitus (OVARO) Q3 2024 earnings summary

Executive summary

• Q3 2024 net loss was -2.087 M€, mainly due to apartment sales; Jan–Sep 2024 net loss at -1.332 M€, down from a 3.086 M€ profit year-over-year.

• Net rental income increased to 941 t€ in Q3 and 2.298 M€ for Jan–Sep, up 15.1% year-over-year.

• Liquidity remained strong at 5.1 M€, though down from 8.7 M€ at year-end 2023.

• 180 apartments sold for 11.7 M€, with sales 2.5 M€ below book value.

• Major investments included full acquisition of Jyväskylän Kukkulan Kehitys Oy and new property purchases in Kuopio and Jyväskylä.

Financial highlights

• Jan–Sep 2024 revenue was 4.240 M€, nearly flat year-over-year.

• Q3 net loss was -2.087 M€ (vs. -282 t€ Q3/2023); Jan–Sep net loss -1.332 M€ (vs. 3.086 M€ 1-9/2023).

• EPS for Jan–Sep 2024 was -0.16€ (vs. 0.36€ year-over-year).

• Balance sheet total increased 9.6% year-over-year to 68.9 M€.

• Cash position at 5.1 M€, down from 8.6 M€ at 2023 year-end.

Outlook and guidance

• 2024 full-year result is expected to weaken significantly versus 2023, in line with the profit warning issued on 27.9.2024.

• Market environment is expected to improve in 2025–2026, with potential housing undersupply in growth centers.