Fastighets Balder (BALD) Q4 2025 earnings summary

Executive summary

• Portfolio value at year-end reached SEK 229 billion, with 80% of assets in major Nordic cities and a 54% residential, 46% commercial split, supporting stable demand and a 95% occupancy rate.

• Rental income and net operating income increased by up to 7% year-over-year in 2025, with Q4 rental income at SEK 3,452m, and profit from property management per share up 5%.

• Net profit for 2025 more than doubled to SEK 7,991m, driven by positive changes in property values and derivative gains.

• Profit from property management in earnings capacity declined 7% year-over-year, partly due to the proposed Norion share distribution and currency effects.

• The Board proposes distributing the entire holding in Norion Bank to shareholders at the 2026 AGM, reclassifying the asset as held for distribution.

Financial highlights

• Like-for-like rental growth was 2.7% year-over-year, with net operating income for the year at SEK 10,314m, a 7% increase from 2024.

• NAV per share stood at SEK 93.96, with a proposed dividend of SEK 5.25 per share and an expected NAV decrease of SEK 4 per share post-Norion distribution.

• Debt-to-assets ratio was 41.8%, LTV 48.1%, and equity/assets ratio 38.5% at year-end.

• Net debt to EBITDA at 12.0x (target 11.0x), with Norion distribution expected to increase this by approximately 0.89x.

• Available liquidity was SEK 24 billion, higher than usual due to 2027 bond maturities.

Outlook and guidance

• No specific like-for-like rental growth guidance for 2026, but expectations are for slightly lower indexation in Swedish residential and stable trends in Denmark and Finland.

• Management expects continued improvement in customer demand and purchasing power in 2026, supported by domestic economic recovery and declining inflation and interest rates.

• Finnish residential market expected to recover as new supply drops and urban migration continues, though timing remains uncertain.

• Net debt to EBITDA target of 11x is a long-term goal, with direction prioritized over pace.

• Focus on balanced capital allocation and limited project development until leverage target is met.