Stendörren Fastigheter (STEF) Q2 2025 earnings summary

Executive summary

• Net operating income increased 17% and income from property management rose 13% in H1 2025, driven by acquisitions and completed projects.

• Portfolio value reached SEK 14.9bn as of June 30, 2025, with 167 properties and 887,000 sqm lettable area.

• Focus on logistics, warehouse, and light industrial properties, mainly in Greater Stockholm and Mälardalen.

• Economic occupancy rate increased to 94.1% as of June 30, 2025, with low tenant losses and bankruptcies.

• Period profit decreased to SEK 90m due to negative derivative value changes and currency effects.

Financial highlights

• NOI yield at 6.4% (12-month average, excluding projects and land).

• Surplus ratio at 80% (12-month average).

• Net letting of SEK 3m in H1 2025; vacancy decreased by 1.9 percentage points to 5.9%.

• Rental income: SEK 510m, NOI: SEK 410m, property management income: SEK 177m, property value: SEK 14.9bn.

• Loan-to-value at 51%, equity ratio at 38-44% as of Q2 2025.

Outlook and guidance

• Continued focus on profitable growth through off-market acquisitions and project development.

• Targeting return on equity of at least 12% and EPRA NAV growth of at least 15% p.a.

• Assessed annual operating net of SEK 837m as of July 1, 2025.

• Ongoing and recently completed projects expected to add SEK 50-53m in annual NOI when fully let and completed.

• Market conditions for attractive acquisitions remain favorable, with a significant acquisition pipeline.