• Operating income amounted to SEK 157.8 (91.5) million
• Operating profit amounted to SEK 41.4 (71.8) million
• Profit for the period amounted to SEK -18.9 (8.3) million

Significant events January–June 2024

Second Quarter

• Construction start for Patriam Lilla Essingen Vinkelhuset.
• Final approval received for Patriam Torsvik.

First Quarter

• Access to the property Fågelbärsträdet 12 (Patriam Kungsholmen Propellerhuset) on lower Kungsholmen. Demolition of the existing building has begun.
• Final repayment of the construction credit for Brf Ontario (Patriam Torsvik) and obtaining a BRF loan.
• Building permit application for Patriam Kungsholmen Propellerhuset has been submitted.

After the end of the period

• Signing of a letter of intent for a new property acquisition.

Comments from the CEO

The housing market in the beginning of 2024 has been cautiously optimistic. Secondary sales increased in central Stockholm during the first half of the year, both in terms of volume and final price. The Riksbank has begun lowering the key policy rate and has signaled that several additional cuts will take place during the remainder of the year, as inflation is close to the target and is expected to remain so in the longer term. The economy now appears to be recovering from a weak position, and the financial and real estate markets have strengthened. The Swedish krona is also showing signs of a trend break and has strengthened slightly compared to summer 2023. Whether the trend break is permanent or temporary remains to be seen, but the forecast from leading banks is that the Swedish krona will strengthen further. In other words, there are a lot of indicators pointing in the right direction.

First half of 2024

Although the housing market has slightly improved during the first half of 2024, it has still been a challenging period for Patriam in terms of results. There are two main reasons for this. The production stoppages in operations, caused by a delayed building permit and late start approval for Vinkelhuset on Lilla Essingen, along with the necessary discounting of unsold apartments in Patriam Torsvik, have negatively impacted the results by approximately SEK 26 million. Profit for the first half of the year was SEK –18.9 million and the balance sheet total amounted to SEK 855.4 million.

During the period, we took possession of the Propellerhuset project on Kungsholmen, where the demolition of the existing building is currently underway. After the end of the period, we signed a letter of intent for a new acquisition involving a project with an approved detailed development plan, and we have increased the pace of housing production. The forecast is that with the right efforts, we will make a profit for the full year 2024.

Our project portfolio

We have a strategic and high-quality project portfolio with a quick turnaround time consisting of smaller infill projects in attractive locations in Stockholm. In addition to the two ongoing projects, we are planning a new start of production at the end of the year, which is expected to strengthen earnings in 2025. The project goes by the name of Hus 6 and is located on Lilla Essingen in the Stockholm city centre, just a stone’s throw from Patriam Lilla Essingen Vinkelhuset.

We are also increasing our focus on the project at Enebytorg in Danderyd Municipality. The project is approaching the consultation phase and will be presented to the public in the second half of 2024. The project is important to us as the zoning plan is anticipated to be finished in 2025, further strengthening the project portfolio with another project with a quick production-start turnaround time. During the autumn, we will also strongly focus on transactions. The current housing market is interesting for smaller players like us, as it gives us the opportunity to strengthen our project portfolio with unique and attractively located projects that add value to our customers.

Political opportunities with sustainable transition

There is a great opportunity for policy makers to stimulate the housing market following historically low numbers of production projects being started. The need for sustainable transition is great, and now that we have come to this conclusion, I wonder when policy makers will introduce new investment aid. Such aid should focus on sustainable transition and not be tied to a specific type of ownership.

Previous aid was aimed at increasing the number of rental apartments and reducing energy consumption. Rentals are important for offering affordable accommodation to many, but sustainability is not just about ownership type.

A new aid initiative should therefore not only include rentals and condominiums, but also other forms of housing that meet the sustainability goals. This would more comprehensively benefit sustainability. In order to meet market needs and promote sustainable transition, policies should create incentives for developing all types of housing that fulfil strict sustainability requirements. This would increase the number of production projects started as well as meet society's housing needs.

Our vision

Our vision is to develop new landmarks and timeless homes to live in and enjoy for a long time to come. The fact that the projects are located in attractive areas also ensures implementation, even when the housing market is weak. We have a strong hold on the premium segment in Stockholm. We will continue to strive towards achieving our vision and focus on sustainability and strengthening our customer offering.

Thank you!
Andreas Holmberg, CEO

For more information, please contact:
Andreas Holmberg, CEO
E-mail: andreas.holmberg@patriam.se
Phone: +46 702093040

About Patriam
Patriam is a family-owned real estate developer based in Stockholm. The group was founded in 2015 and has its roots in the EBAB Group, which is one of Sweden's largest in projects and property development. Patriam is an experienced developer that focuses on attractive locations where both demand and purchasing power are expected to be good. Patriam is currently working on a handful of projects in Stockholm.