Castellum (CAST) Q2 2025 earnings summary

Executive summary

• Completed SEK 1.7 billion property acquisitions in Uppsala, Örebro, and Linköping, strengthening presence in growth cities.

• Income from property management declined 8.7% year-over-year to SEK 2,222M; net operating income fell to SEK 3,206M.

• Net leasing was negative at SEK -182M, with occupancy rate at 90.3%.

• SEK 10 billion in bank loan refinancing improved financial flexibility, lowered credit margins, and extended debt maturity.

• Moody's upgraded the credit rating to Baa2 with stable outlook; dividend payments resumed.

Financial highlights

• Property income declined by 8.7% year-over-year, mainly due to asset sales and higher vacancies.

• NOI decreased by SEK 185 million, impacted by divestments, vacancies, and absence of prior year insurance claims.

• Net leasing was SEK -182M, reflecting higher vacancies and terminations.

• Property values written down by SEK 1.15 billion (−0.8%) in Q2.

• Property portfolio valued at SEK 137 billion as of 30 June 2025.

Outlook and guidance

• Management expects long-term benefits from asset rotation into higher quality properties.

• Rental market remains stable in regional cities but is more challenging in metropolitan areas, especially Stockholm offices.

• Ongoing and planned projects total over SEK 3.8 billion, supporting future rental income growth.

• Financing conditions remain favorable, with potential for further interest rate reductions in 2025.

• Focus on customer dialogue, capital market relationships, and value creation through leasing and property upgrades.