Castellum (CAST) Q4 2025 earnings summary

Executive summary

• Strategy centers on profitability, cost control, staff reductions, and share buybacks, targeting a 10% ROE over the business cycle.

• Staff reduction of 30 people in Q4 led to SEK 40 million in one-off costs, with expected ongoing savings of a similar amount.

• Board proposes share buybacks instead of dividends, aligning with a new capital distribution policy due to the share price discount to NAV.

• Leading Nordic property company with SEK 137 Bn property value and SEK 9.3 Bn yearly contracted rent.

• Net income after tax for the year was SEK 938 M, down from SEK 2,357 M, with EPS at SEK 1.91 (4.79).

Financial highlights

• Property values declined by SEK 2.5 billion for the year, with SEK 1.1 billion of that in Q4; Q4 value drop mainly in Stockholm (SEK 0.9 billion) and Finland (SEK 0.2 billion).

• Net leasing for the year was -SEK 140 million, with Q1 heavily negative due to two major events, but Q2–Q4 positive.

• Rental and service income for 2025 was SEK 9,593 M, down 2.0% year-over-year.

• Net operating income (NOI) decreased by 3.9% to SEK 6,524 M.

• Economic occupancy rate stood at 89.8%.

Outlook and guidance

• No specific forecasts for vacancy reduction or net leasing turnaround; management expects conditions may worsen before improving.

• CapEx spending expected to remain at similar levels in coming years.

• The Board intends to carry out share repurchases equal to 25% of income from property management for 2025, with no cash dividend proposed.

• Focus remains on cost control, reducing vacancies, and divesting non-core assets to improve profitability.

• Strong liquidity position with SEK 20.3 Bn in cash and unutilised credit facilities.