Magnolia Bostad's results continued to be negatively affected during Q1, by the cautious market for new housing construction. At the same time, we have maintained a high production rate and delivered just over 1,500 homes to our buyers up to and including March. We expect to complete a further 1,800 homes before the end of the year.
Johan Tengelin, CEO Magnolia Bostad:
"Due to the prevailing situation in our industry, we had to review our costs and adapt our organization at the beginning of 2024. We concentrate on the metropolitan regions to create the conditions for a stable and profitable business. By increasing our focus on sales, our target is to reduce the company's indebtedness and handle future bond maturities.
We can see that inflation has finally started to fall to levels around the Riksbank's long-term target and, if nothing unexpected happens, we should see a first interest rate cut as early as in May or June, followed by several cuts over the next twelve months. My assessment is that the direct yields for housing have now reached their peak and, coupled with an increasing willingness to invest and a stabilization in contract prices, good conditions are in place for a gradual recovery in new production.
We have around 6,800 building rights with zoning plans in force, which gives us the opportunity to start new housing projects as soon as the conditions exist. There is a significant housing deficit in Sweden's growth regions. With an increasing imbalance between supply and demand, the need for sustainable, energy-efficient, quality housing is still high, which is basically reflected by non-existent vacancies on the rental market. In parallel with a continued high production rate of completed sold homes, we are ready to take advantage of new business opportunities when the market recovers."
1 January-31 March 2024
- Net sales amounted to SEK 54 m (57).
- The operating loss was SEK 125 m (-107), of which SEK -48 m (-5) applies to changes in the value of investment properties.
- The loss before tax for the period was SEK 208 m (-173) and the loss after tax was SEK 208 m (-175).
- Earnings per share after deductions for minority shares was SEK -5.02 (-4,20).
Significant events 1 January-31 March 2024
- Bond terms were renegotiated for outstanding bonds originally due to mature in April 2024.
- Unconditional shareholder contribution of SEK 100 m received from Magnolia Bostad's owner HAM Nordic AB
Significant events after the end of the period
- A restructuring of the organization was implemented to focus on metropolitan regions, which also means annual cost savings.
For more information, please contact:
Johan Tengelin, CEO
johan.tengelin@magnoliabostad.se
Fredrik Westin, Deputy CEO & CFO
fredrik.westin@magnoliabostad.se
+46 72 720 00 06
This information is information that Magnolia Bostad AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2024-04-26 07:45 CEST.
About Magnolia Bostad
Magnolia Bostad AB, CIN 556797-7078, is a leading urban developer that develops new residential properties primarily rental apartments, tenant-owned apartments and community service properties, in attractive locations in Sweden's growth areas and major cities. Housing is being developed both for sale and for self-management. Our work is based on a holistic approach where the operations are conducted in a way that promotes long-term, sustainable urban development. The company's bonds are listed on Nasdaq Stockholm. More information is available at www.magnoliabostad.se
