Profitable growth and strong cash flow

April–June 2024

• Revenues for Leases amounted to MSEK 1,009 (942). For comparable units in fixed currency, the increase was 3 percent
• Revenues for Own Operations amounted to MSEK 857 (832) MSEK. For comparable units in fixed currency, the increase was 10 percent
• Net operating income for Leases amounted to MSEK 869 (806). For comparable units in fixed currency, the increase was 4 percent
• Net operating income for Own Operations amounted to MSEK 256 (219). For comparable units in fixed currency, the increase was 20 percent                           
• EBITDA amounted to MSEK 1,082 (977), an increase of 11 percent
• Cash earnings amounted to MSEK 560 (510), equivalent to SEK 3.05 (2.77) per share
• Changes in property values amounted to MSEK 413 (-466). Unrealised changes in value of derivatives amounted to MSEK -8 (332)
• Profit for the period amounted to MSEK 710 (288), equivalent to SEK 3.83 (1.56) per share 
• DoubleTree by Hilton Montreal in Canada was transferred 15 April
   

January–June 2024

• Revenue for Leases amounted to MSEK 1,854 (1,722)
• Revenue from Own Operations amounted to MSEK 1,513 (1,405)
• Net operating income for Leases amounted to MSEK 1,563 (1,468)
• Net operating income Own Operations amounted to MSEK 347 (271)
• EBITDA amounted to MSEK 1,822 (1,652), an increase of 10 percent
• Cash earnings amounted to MSEK 832 (769), corresponding to SEK 4.53 (4.18) per share
• Changes in property values amounted to MSEK 447 (-678) and unrealised changes in the value of derivatives amounted to MSEK 290 (-12)
• Profit for the period amounted to MSEK 1,164 (85), corresponding to SEK 6.26 (0.39) per share
• The loan-to-value ratio was 46.2 percent and the interest coverage ratio, rolling twelve months, was 2.6x

Comment from CEO Liia Nõu

“Demand in the hotel market was solid in the second quarter, with good business outcomes in both of our segments. Total revenue and total net operating income both increased by 6 percent for comparable portfolios with fixed exchange rates.”

“There were positive, unrealised net changes in value for the property portfolio as a whole, explained by increased cash flow. The hotel property portfolio’s average valuation yield increased marginally to 6.26 percent. Our average interest on debt decreased to 4.1 percent, further reinforcing our positive yield spread which is greater than 200 basis points.”

“With a loan-to-value ratio of 46.2 percent, interest-bearing net debt/EBITDA of 8.5 times, and cash and equivalents and unutilised credit facilities of MSEK 4,137, we are able to act swiftly when attractive acquisition opportunities come along.”

Presentation of the interim report
Pandox will present this interim report to investors, analysts and the media in a conference call webcast on 12 July 2024 at 08:30 CEST. As a service to Pandox’s stakeholders there will also be an external update on the hotel market.

If you wish to participate via webcast, please use the following link:
https://ir.financialhearings.com/pandox-q2-report-2024

If you wish to participate via teleconference, please register via the following link:
https://conference.financialhearings.com/teleconference/?id=5002587

Attachment: Interim report January–June 2024

FOR FURTHER INFORMATION, PLEASE CONTACT:
Liia Nõu, CEO, +46 (8) 506 205 50
Anneli Lindblom, CFO, +46 (0) 765 93 84 00
Anders Berg, SVP Head of Communications and IR, +46 (0) 760 95 19 40

This information is information that Pandox AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted, through the agency of the contact persons set out above, for publication on 12 July 2024 at 07:00 CEST.

About Pandox
Pandox owns, develops, and leases hotel properties to skilled hotel operators under long-term, turnover-based leases with minimum guaranteed levels. Since our inception in 1995, we have grown into one of the largest hotel property owners in Europe. Our portfolio consists of 157 hotel properties with approximately 35,000 rooms across 11 countries in Northern Europe. The portfolio's market value is approximately SEK 70bn. The head quarter is in Stockholm, and we are listed on Nasdaq Stockholm.  www.pandox.se