January - June
- Rental income increased by 14% to MSEK 1,115 (978).
- Net operating income increased by 18% to MSEK 826 (701).
- Profit from property management increased by 37% to MSEK 515 (376). Profit from property management per common share increased by 31% to SEK 7.68 (5.88).
- Changes in the value of properties totalled MSEK 221 (157).
- Net profit after tax totalled MSEK 477 (439), equivalent to SEK 6.99/common share (6.97).
- Net investments for the period amounted to MSEK 962 (453), of which MSEK 624 (189) related to acquisitions of properties, MSEK 313 (282) to investments in existing properties and new construction, MSEK 1 (14) to investments in associated companies and joint ventures, and MSEK -76 (-33) to divested properties, MSEK 100 referred to a acquisition of minority shares in a subsidiary.
April - June
- Rental income increased by 16% to MSEK 564 (486).
- Net operating income increased by 19% to MSEK 443 (373).
- Profit from property management increased by 35% to MSEK 281 (209). Profit from property management per common share increased by 28% to SEK 4.22 (3.30).
- Changes in the value of properties totalled MSEK 120 (155).
- Net profit after tax totalled MSEK 203 (198), equivalent to SEK 2.91/common share (3.12).
- Net investments for the period amounted to MSEK 739 (349), of which MSEK 475 (186) related to acquisitions of properties, MSEK 163 (150) to investments in existing properties and new construction and MSEK 1 (14) to divested properties, MSEK 100 referred to a acquisition of minority shares in a subsidiary.
Comments by the CEO
Profit from property management for the quarter amounted to MSEK 281 (209) and for the first six months to MSEK 515 (376), an increase of 35 and 37 percent, respectively, compared with the previous year. The increase is attributable to a higher operating surplus from our property portfolio and a lower average interest rate. Profit from property management per common share for the first six months amounted to SEK 7.68 (5.88), an increase of 31 percent. For the quarter, profit from property management per common share increased by 28 percent to SEK 4.22 (3.30).
The forecast for profit from property management for 2025 is MSEK 1,090, which can be compared with the forecast for the previous quarter of MSEK 1,050. The forecast's profit increases by MSEK 19 due to a one-off payment from a tenant for early vacating. The reason why we have chosen to accept early vacating is that we see good potential in reletting the premises and thereby increasing our earnings. Our vacancy increases in the short term because of this, but NP3's ambition is, as always, to increase earnings for our shareholders in the long term. The one-off payment will be included in the result for the third quarter, while the rental termination notice has affected net letting in the second quarter.
The forecast also increases thanks to lower financial costs given the lower debt volume due to our preference share issue, as well as higher income driven by investments. The forecast is our best assessment based on the property portfolio we have communicated and the information we have from our business areas.
Economic situation and the sector
Rental income increased by 14 percent during the first half of the year and the increase in the comparable portfolio amounted to just over 2 percent. The surplus ratio was 74 percent, which is slightly higher compared to the previous year, due to the mild weather during the first quarter of the year. The occupancy rate of 93 percent is at par with the previous year. Net letting for the quarter amounted to MSEK 10 and for the six-month period to MSEK 12. The figures confirm the stability that NP3 stands for.
At the same time, the economic situation is still challenging. The market is hesitant and everything takes longer. New threats arise and must then be evaluated and taken into account by all. However, the fact that things take longer is not only negative, but can also be positive. This should be able to contribute to our tenants being given better conditions to meet the market's challenges and still have a sustainable business. In a review focusing on exports and imports of NP3's diversified tenant base, a clear picture emerges that NP3's direct customers have only a small concentration of import and export, and if there is any dependency, it is mainly on Europe.
Project investments for the first half of the year amount to MSEK 313 and we see continued demand for newly produced premises. For NP3, new production highlights the value of our existing development rights while making our local areas more attractive. New production also provides a clear picture of what the market rent is for efficient premises. NP3 has a large number of development rights with a total lettable area of approximately 300,000 square meters in the property portfolio, which means that the project volume may increase slightly when the economy picks up again.
Valuation
In total, the positive unrealised changes in property value for the quarter add up to MSEK 120, with the main reason being increased cash flow from our existing property portfolio. The valuation yield for our property portfolio increased by 1 bps to 7.10 percent during the quarter. The biggest change is the yield in Skellefteå which has generally increased by 18 bps, affecting the entire portfolio by 2 bps. Regarding Skellefteå, I have reason to repeat that our business there was set up before the green transition took off, and if we look at the net letting in Skellefteå it is slightly positive with TSEK 100 seen over three months. For the past 12 months, net letting amounts to MSEK 14. In fact, NP3 has higher earnings in Skellefteå today than 12 months ago, and we do not see any dramatic changes on the horizon. In other words, in the business area the cash flow effect in valuations is positive, while the yield is negative.
Future
NP3 has made net investments of MSEK 962 during the first half of the year and is ready to continue investing if the right opportunity arises. The preference share issue carried out in May has raised MSEK 400 and provided the conditions for continued growth in our profit from property management. Whether this is done through future acquisitions, investments in projects or repurchase of bonds, depends on market conditions, but as always NP3's focus is on strengthening our profit from property management per common share while maintaining or reducing operational and financial risk. We will continue with the same goal in mind.
I would like to extend a big thank you to NP3's employees, shareholders and other stakeholders for your strong commitment, which strongly contributes to NP3 being so well prepared. We have a balance sheet and cash flow that allow us to continue evaluating potential investments. The future will show what opportunities we act upon.
This constitutes information that NP3 Fastigheter AB (publ) is legally obliged to publish under the EU's Market Abuse Regulation and the Swedish Securities Market act. The information was submitted for publication, through the agency of the contact person specified, on 11 July 2025 at 08.00 p.m. (CEST).
This report has been prepared in both Swedish and English versions. In case of variations in the content between the two versions, the Swedish version shall govern.
For further information, please contact
Andreas Wahlén, CEO
E-mail: andreas@np3fastigheter.se
Phone: +46 70 313 17 98
NP3 is a cash flow oriented real estate company focusing on commercial and high yielding investment properties, mainly in northern Sweden. As of 30 June 2025, the property portfolio comprised of 2,258,000 square metres lettable area distributed over 575 properties within the segments industrial, logistics, retail, offices and others. The property portfolio is divided into eight business areas: Sundsvall, Gävle, Dalarna, Östersund, Umeå, Skellefteå, Luleå and mid-Sweden. The property value as of 30 June 2025 amounted to SEK 24.5bn. The NP3 share is listed on Nasdaq Stockholm, Large Cap. NP3 was founded in 2010 and is based in Sundsvall. Read more on www.np3fastigheter.se.
