Strong end to the year and raised dividend

Pandox has renamed its business segments to Leases (formerly Property Management) and Own Operations (formerly Operator Activities). The name change will not affect the accounting principles.

October–December 2023

• Revenue for Leases amounted to MSEK 928 (848). For comparable units, the increase was 7 percent, adjusted for currency effects
• Net operating income for Leases amounted to MSEK 769 (698). For comparable units, the increase was 7 percent, adjusted for currency effects
• Net operating income for Own Operations amounted to MSEK 220 (184). The increase for comparable units was 5 percent, adjusted for currency effects
• EBITDA amounted to MSEK 942 (829), an increase of 14 percent
• Cash earnings amounted to MSEK 415 (515), equivalent to SEK 2.26 (2.80) per share
• Changes in property values amounted to MSEK -339 (-67). Unrealised changes in value of derivatives amounted to MSEK -1,236 (-59)
• Profit for the period amounted to MSEK -1,125 (101), equivalent to SEK -6.05 (0.66) per share
• During the quarter Pandox signed leases with Scandic for Hotel Pomander in Nuremberg and with Strawberry for Hotel Mayfair Copenhagen. In addition, in Germany 18 leases with Leonardo Hotels were extended for five years
• Pandox’s science-based climate targets were validated by the Science Based Targets initiative (SBTi) and existing loans of MSEK 2,200 with two banks were sustainability-linked

January–December 2023

• Revenue for Leases amounted to MSEK 3,690 (3,307). For comparable units, the increase was 11 percent, adjusted for currency effects
• Net operating income for Leases amounted to MSEK 3,157 (2,868). For comparable units, the increase was 11 percent, adjusted for currency effects
• Net operating income for Own Operations amounted to MSEK 713 (566). For comparable units, the increase was 54 percent, adjusted for currency effects
• EBITDA amounted to MSEK 3,696 (3,304), an increase of 12 percent
• Cash earnings amounted to MSEK 1,742 (2,056), equivalent to SEK 9.48 (11.18) per share
• The comparison period includes government assistance within Leases and Own Operations in the amounts of MSEK 117 and MSEK 143 respectively. Adjusted for these amounts, EBITDA increased by 21 percent, while cash earnings decreased by 3 percent
• Changes in property values amounted to MSEK -1,107 (1,180), of which MSEK -1,306 is unrealised and MSEK 199 is realised. Unrealised changes in value of derivatives amounted to MSEK -1,205 (2,318)
• Profit for the period amounted to MSEK -580 (4,204), equivalent to SEK -3.18 (22.94) per share
• The loan-to-value ratio was 46.6 percent and the interest coverage ratio on a rolling 12-month basis was 2.7 times
• The Board of Directors is proposing a dividend of SEK 4.00 (2.50) per share, a total of MSEK 734 (460)

Comment from CEO Liia Nõu

“The year concluded with a stable and positive fourth quarter in which there was good demand in regional hotel markets in all countries and strong recovery in larger cities. Total revenue and net operating income increased by 13 and 12 percent respectively during the quarter.”

“For 2024 we anticipate some RevPAR growth in the hotel market, supported among other things by a strong event calendar in Germany, with the UEFA European Championship in June–July, and stable market conditions in other markets. Bookings in Pandox’s markets are up to now slightly higher than at the same time the previous year. Lower inflation and hopefully also lower interest rates should have a positive effect on household consumption and should also be able to lessen the effects of a potentially weakened labour market and lower employment.”

“Based on a normalised hotel market and on Pandox’s strong cash flows and stable financial position, the Board of Directors is proposing a dividend of SEK 4.00 (2.50) per share, equivalent to a total of around MSEK 734 (460).”

Presentation of the year-end report
Pandox will present this year-end report to investors, analysts and the media in a conference call webcast on 8 February 2024 at 08:30 CET. 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-q4-report-2023

If you wish to participate via teleconference, please register via the following link:
https://conference.financialhearings.com/teleconference/?id=5003692

Attachment: Year-end report January–December 2023

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. The information was submitted, through the agency of the contact persons set out above, for publication on 8 February 2024 at 07:00 CET.

About Pandox
Pandox is a leading owner of hotel properties in Northern Europe with a focus on sizeable hotels in key leisure and corporate destinations. Pandox’s hotel property portfolio comprises 159 hotels with approximately 35,800 hotel rooms in 12 countries. Pandox’s business is organised into Leases which comprises hotel properties leased on a long-term basis to leading hotel operators, and Own Operations, which comprises hotel operations executed by Pandox in its owner-occupied hotel properties. Pandox was founded in 1995 and the company’s B shares are listed on Nasdaq Stockholm. www.pandox.se