Castellum (CAST) Q3 2025 earnings summary

Executive summary

• Focus on returning to profitability through operational efficiency, cost control, and a back-to-basics approach, targeting a 10% ROE and emphasizing leasing and asset optimization.

• Leadership transition with a new CEO and board members, with the property portfolio and staff seen as stronger than initially expected.

• Portfolio consists mainly of office, warehouse, and light industry properties in Sweden, with holdings in Copenhagen, Helsinki, and a significant stake in Entra ASA in Norway.

• SEK 159 billion in property value and 5.3 million sq. m. lettable area, with 69% of property value sustainability-certified.

Financial highlights

• Rental and service income for Jan–Sep 2025 was SEK 7,196 million, down 2.8% year-over-year, with NOI declining 4.4% to SEK 4,908 million.

• Net leasing was negative SEK 166 million for the period, with new leases of SEK 532 million and terminations of SEK 698 million.

• Occupancy rate declined to 90%, down 1.2% year-over-year.

• Property values written down by SEK 1.4 billion (1%), mainly due to tenant defaults and lower cash flow expectations.

• Net income after tax for Q3 2025 was SEK 858 million, up from SEK 471 million year-over-year.

Outlook and guidance

• Expectation of further increases in vacancies due to weak net leasing and challenging market conditions, especially in major cities.

• Strategic review ongoing, with a formal update to be provided in the future.

• Focus remains on maximizing leasing, asset rotation, and cost efficiency to achieve a 10% return on equity over the business cycle.

• Credit margins remain at historically low levels, with a stable to slightly decreasing interest rate outlook.