Castellum (CAST) Q4 2024 earnings summary

Executive summary

• Achieved a strong financial position, enabling new investments in existing portfolio, project developments, and acquisitions, including the SEK 1.7 billion Infinity office project in Stockholm and increased stake in Entra, triggering a mandatory offer.

• Board proposed a dividend of SEK 2.48 per share after two years of paused dividends, totaling approximately SEK 1.2 billion and reflecting renewed confidence.

• Net income after tax was SEK 2,357M, a significant turnaround from last year's loss of SEK -11,592M.

• Property value as of December 2024 was SEK 155 billion, with a diversified portfolio across Nordic metropolitan and regional growth areas.

• Castellum received a BBB credit rating from S&P, improving its capital market position.

Financial highlights

• Net operating income increased by 3.4% year-over-year to SEK 6,786M; income from property management up 10.2% to SEK 4,819M.

• Like-for-like portfolio income rose by SEK 199 million (2.3%), mainly due to indexation, partially offset by higher vacancies and discounts.

• Direct property costs decreased by SEK 54 million; electricity costs down SEK 94 million.

• Central and property admin costs reduced by SEK 176 million, with SEK 143 million from a write-off of capitalized projects.

• Changes in value of investment properties for the year were SEK -1,627M (-1.2%), a marked improvement from SEK -14,534M (-9.5%) last year.

Outlook and guidance

• Expecting 2025 to be a stronger year for Nordic economies, with increased investments planned in projects and acquisitions.

• Confident in maintaining loan-to-value below 40% and cost of debt flat in 2025.

• More value-creating investment opportunities are anticipated for 2025, with a focus on higher-quality assets.

• Ongoing and planned projects, including Infinity and major developments in Gothenburg and Stockholm, support future growth.

• The company is well-positioned for future investment opportunities, supported by a strong balance sheet and liquidity of SEK 26.4Bn.