K-Fast (KFAST) Q2 2025 earnings summary

Executive summary

• Completed divestment of all properties in Region Syd to Brinova, now holding 57.6% of Brinova, consolidated from April 1, 2025, significantly increasing scale and operational leverage.

• Three major property transactions generated net liquidity of approximately 1,100–1,101 MSEK during the quarter and up to 2027, supporting a more capital-light business model.

• Issued 500 MSEK in senior unsecured green bonds under a new Green Framework to refinance debt and support sustainable construction.

• Total managed apartments at period end: 7,506, with a 94.4% occupancy rate and annual rental value of 1,293.9 MSEK.

• Strategic focus shifted toward the Construction segment, with property ownership concentrated in Brinova and K-Fast Kilen.

Financial highlights

• Group net result for the period: -54.5 MSEK (87.9), impacted by -111 MSEK in derivative value changes.

• Management result for the period: 116.6 MSEK (+93% YoY); management result per share: 0.33 SEK (0.25).

• Rental income for the quarter rose 99% YoY to 310.0 MSEK; for the period, up 56% to 471.2 MSEK, mainly due to Brinova consolidation.

• Construction segment revenue: 1,021.5 MSEK (+17% YoY), but gross profit declined to 116.6 MSEK (from 223.9 MSEK) due to fewer construction starts.

• Investment property value increased 54% to 24,037.1 MSEK, primarily from Brinova consolidation.

Outlook and guidance

• Ongoing and planned transactions expected to provide further liquidity through 2027.

• Demand for new housing in Sweden remains strong, especially in Skåne, Öresund, Västra Götaland, and Mälardalen.

• Construction order book is favorable, with several major orders secured and focus on cost control and efficiency.

• Interest coverage ratio expected to improve with higher Construction segment revenue.

• Prefab's largest project to date expected to start in 2026.