-The start of the year was extremely tumultuous for the world. This turbulence leads to market volatility and puts pressure on both the financial system and businesses. From a short-term perspective, this is not having a major impact on Castellum, but over the longer term it is of course significant for us and our tenants. We are standing strong financially and are well prepared, with the scope to make the right long-term decisions. Our strategy remains unchanged, and we will continue to invest in further increasing the quality and density of our portfolio, thereby creating shareholder value.
We started the year with negative net leasing, and we are anything but satisfied with that. At the same time, this reflects the relatively challenging rental market in many of our larger sub-markets. Gross leasing is good and on a par with preceding years, but we are being hit with larger cancellations and more bankruptcies.
The loan-to-value ratio amounted to a low 35.3 per cent. We are very satisfied with the balance sheet, and we are well positioned for forthcoming investment opportunities, says Joacim Sjöberg, CEO of Castellum Aktiebolag.
January-March 2025
- Income totalled SEK 2,386 M (2,449). In the like-for-like portfolio, rental income decreased 0.2 per cent (2.8), excluding currency effects.
- New leases were concluded for 62,000 square metres (64,000) and an annual rent of SEK 137 M (128). Net leasing totalled SEK -184 M (3) for the period and SEK -174 M (-12) for the last 12 months.
- Net operating income totalled SEK 1,572 M (1,618), corresponding to a decrease of 2.8 per cent. Net operating income in the like-for-like portfolio increased 0.1 per cent (8.5), excluding currency effects.
- Income from property management totalled SEK 1,064 M (1,148), corresponding to a decrease of 7.3 per cent.
- Net income after tax for the period totalled SEK 2 M (-180), corresponding to SEK 0.00 (-0.37) per share before and after dilution.
- Return on equity for the last 12 months amounted to 3.3 per cent (-9.4).
- Net investments totalled SEK 358 M (235), of which SEK 498 M (448) pertained to new construction, extensions and reconstructions, SEK 19 M (33) to acquisitions and SEK -159 M (-246) to sales.
- Investments in associated companies and joint ventures amounted to SEK 387 M (-) for the period.
- Changes in value of investment properties for the period totalled SEK -368 M (-1,019), corresponding to -0.3 per cent (-0.7). The value of the property portfolio amounted to SEK 135.0 Bn (135.7) at the end of the period.
- The loan-to-value ratio was 35.3 per cent (35.6).
- The interest coverage ratio for the latest twelve-month period was 3.2 (3.3) and interest-rate hedging was applied to 74 per cent (70) of the loan portfolio (more than 1 year) at the end of the period.
Important events during the period
- The Board of Directors proposes a dividend of SEK 2.48 per share, divided into four equal payouts of SEK 0.62 per share each.
- Castellum acquired additional shares in the Norwegian property company Entra, triggering an obligation to make a mandatory offer to acquire all shares in Entra under Norwegian law.
- Work on the Infinity office project, with about 20,000 square metres of leasable area in the Hagastaden district of Stockholm, has started with a remaining investment volume of SEK 1.25 Bn.
- Castellum received a credit rating of BBB from Standard & Poor, which improved the company's position in the capital market.
- For the first time, Castellum received the top score in the CDP climate ranking.
- The Nomination Committee of Castellum will propose the election of Stefan Ränk as a new member of Castellum's Board of Directors at its Annual General Meeting on 7 May 2025.
- Castellum issued unsecured green bonds with three different maturities, totalling SEK 4 Bn, under its existing MTN programme.
Important events after the close of the period
- Chief Executive Officer Joacim Sjöberg has informed Castellum's Chairman of the Board that he wishes to step down from as CEO in 2026. The Board of Castellum will now initiate a process for the recruitment of a successor.
- Castellum has updated its climate target in accordance with a new international standard, which means that Castellum commits to reach net-zero greenhouse gas emissions across the value chain by 2040.
Annex: Interim report January-March 2025
For further information, please contact:
Joacim Sjöberg, Chief Executive Officer, Castellum AB, +46 8 503 052 00
Jens Andersson, Chief Financial Officer, Castellum AB, +46 (0)76 855 67 02
About Castellum
Castellum is one of the Nordic region's largest commercial property companies, with a focus on office and logistics properties in Nordic growth cities. As of 31 March 2025, the property value, including the holdings in the Norwegian company Entra ASA, totalled approximately SEK 155 Bn. The company is listed on Nasdaq Stockholm Large Cap and is classified as green under the Green Equity Designation. Castellum is the only Nordic property company included in the Dow Jones Sustainability Indices (DJSI).
Beyond expectations.
www.castellum.com
This information is information that Castellum is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2025-05-06 08:00 CEST.
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Joacim Sjoberg Castellum
Jens Andersson Castellum
