Ovaro Kiinteistösijoitus (OVARO) Q4 2024 earnings summary

Executive summary

• Residential portfolio divested, with capital redirected to property development and 'buy-develop-sell' projects, especially in Tampere and Jyväskylän Kukkula.

• Major project pipeline secured for the long term, including a 15-year development pipeline in Jyväskylän Kukkula.

• Strong equity ratio at 68.4% provides a stable base for future projects.

• Major capital freed from apartment divestments and invested in strategic projects.

• Market conditions expected to improve in 2025 as interest rates decline and housing supply tightens in growth centers.

Financial highlights

• Q4 2024 revenue €1.02M, down 26.4% year-over-year; full-year revenue €5.26M, down 6.1%.

• Q4 net profit €1.92M vs. €-0.50M last year; full-year net profit €0.59M, down 77.4% year-over-year.

• Operating profit (EBIT) was -€467 thousand, compared to €3.15 million in 2023.

• EPRA earnings were -€143 thousand (2023: €918 thousand); EPRA NAV per share was €4.91 (2023: €5.31).

• Cash position at year-end €1.6M, down 81.3% from previous year.

Outlook and guidance

• 2025 net profit expected to improve from 2024 (€0.59M).

• Focus in 2025 will be on Jyväskylän Kukkula zoning and advancing buy-develop-sell projects.

• Market environment seen as improving due to lower interest rates and tightening housing supply.