Castellum (CAST) Q1 2025 earnings summary

Executive summary

• Q1 2025 saw income of SEK 2,386 M, down 2.6% year-over-year, and net operating income fell 2.8% to SEK 1,572 M.

• Net income after tax was SEK 2 M, a significant improvement from SEK -180 M in Q1 2024.

• The company increased its stake in Entra to 35.2%, triggering a mandatory offer for remaining shares.

• Updated net-zero emissions target by 2040, validated by SBTi, and achieved top CDP climate ranking.

• Maintains a strong financial position with robust liquidity and a low loan-to-value ratio.

Financial highlights

• Income from property management decreased 7.3% year-over-year to SEK 1,064 M, mainly due to asset divestments and higher vacancies.

• Like-for-like rental income declined by 0.2% year-over-year.

• Net leasing was negative SEK 184 M, with new leases of SEK 137 M and terminations of SEK -321 M, mainly due to higher vacancies and bankruptcies.

• Changes in property values resulted in a SEK -368 M impact, or -0.3% of property value.

• NOI decreased by SEK 46 M, driven by divestments and vacancies.

Outlook and guidance

• Market volatility and global uncertainty may delay economic recovery and prolong cautious tenant behavior.

• The company aims to remain a net investor in 2025, focusing on quality and density in its portfolio.

• Regional cities remain resilient, while metropolitan areas are more cautious.