K-Fast (KFAST) Q1 2025 earnings summary

Executive summary

• Completed divestment of Region Syd properties to Brinova, receiving 57.6% ownership and consolidating Brinova from April 2025.

• Strategic shift to focus on contracting operations, with increased earnings potential from property management via Brinova stake.

• Management team restructured as of April 2025.

• Project Alderholmen in Gävle completed; all 96 apartments leased at completion.

• Deepened partnership with Kilenkrysset through joint acquisition of property portfolio in Gävle and Uppsala.

Financial highlights

• Group Q1 2025 net result: -5.3 MSEK (35.5), -0.02 SEK/share (0.15), mainly due to negative property value changes.

• Property management result: 34.1 MSEK (25.3), +35% year-over-year.

• Group revenues: Property management 161.6 MSEK (146.8), contracting 519.8 MSEK (452.9), both up year-over-year.

• Investment properties value: 16,062.3 MSEK, up 3% from Dec 2024.

• Long-term net asset value per share: 25.34 SEK, up 0.4% from year-end 2024.

Outlook and guidance

• Focus shifting to contracting operations post-Brinova transaction, with increased earnings capacity in property management.

• No new construction starts in Q1; largest prefab project expected to start in 2026.

• No dividend proposed for 2024; focus on reinvestment and balance sheet strengthening through 2028.

• Board to seek authorization for new share issues at AGM 2026.

• Demand for new housing remains strong in key regions; construction order backlog at all-time high.