Neobo reported flat rental income for the second quarter, with headline rents holding at SEK 236 million compared with the same period a year earlier. Despite the stable top-line rental figure, the residential property manager recorded declines in net operating income and in profit from property management.
The company’s second-quarter operating income was SEK 142 million, while profit from property management amounted to SEK 61 million. According to Neobo, the reduction in net operating income and property-management profit was mainly driven by the absence of revenue from properties that were sold during the period, alongside higher costs within its like-for-like portfolio.
On a like-for-like basis, rental income showed growth of 3.8%. The company attributed the uplift to completed renovations and lower vacancy rates in the comparable portfolio, which supported rental performance despite the overall flat group-wide rental number.
During the quarter Neobo divested two properties, reportedly at prices above their book value. The company also executed a share repurchase program, buying back 645,000 shares in the period.
Neobo said it intends to deploy capital from the divestments to pursue investments that can deliver higher returns and to increase net asset value. The company expressed an expectation of positive growth in net operating income going forward.
On macro commentary, Neobo noted signs of recovery in the Swedish economy and said household purchasing power has improved.
Key operational figures provided by the company point to a mixed quarter: headline rental income was unchanged year-on-year, like-for-like rents rose modestly, while profit metrics were reduced by the combined effect of disposals and rising costs in the comparable asset base. Management actions in the quarter included asset sales above book and share repurchases, and the firm intends to recycle proceeds into higher-return opportunities.
Where information is limited: the company has set out an expectation for improved net operating income but did not quantify future investment amounts or give a timetable for deployment of proceeds from disposals. The firm also did not disclose further detail on the specific cost items that increased in the like-for-like portfolio.