Fastighets Balder (BALD) Q1 2025 earnings summary

Executive summary

• Rental income increased 9% year-over-year to SEK 3,416m, and net operating income rose 10% to SEK 2,496m, driven by acquisitions, completed projects, and higher rents.

• Profit from property management per share grew 7% to SEK 1.30, with NAV per share at SEK 89.55.

• Net profit for Q1 2025 was SEK 2,781m, a turnaround from a loss in Q1 2024, mainly due to positive property revaluations.

• Portfolio value reached SEK 223 billion, with 80% located in capitals and large cities, and a 96% occupancy rate.

• Portfolio remains highly diversified: 53% residential, 47% commercial (office, retail, hotels, industrial/logistics).

Financial highlights

• Like-for-like rental growth was 2.9% year-over-year.

• Net debt to total assets improved to 49.0%; equity/assets ratio at 38.7%; interest coverage ratio at 2.7.

• Net debt/EBITDA (LTM) reduced to 12.0, trending toward target of 11.

• Available liquidity, including confirmed loan commitments, reached SEK 23.5 billion.

• 78% of debt is hedged with interest swaps and fixed-rate loans; average interest rate is 3.1%.

Outlook and guidance

• Like-for-like rental growth for 2025 expected to remain near Q1's 2.9%.

• Project development investment remains low, with cautious optimism for activity later in the year.

• Financing expenses expected to decrease in the latter part of 2025 as lower rates roll through.

• Focus on balanced capital allocation until Net Debt/EBITDA reaches 11x.

• Finnish residential market remains slow but is expected to improve in the second half of the year.