In the third quarter, the European real estate market continued to stabilize, although transactional activity declined slightly - a temporary setback in our view. At the same time, assets under management grew to SEK 160 billion. Looking ahead, our priority is to strengthen our pan-European presence and deepen engagement with clients and investors across the twelve markets where we operate, while taking firm steps to enhance shareholder value.
I maintain a positive outlook regarding the progression of the European real estate market. This is underpinned by the continued presence of favourable growth conditions, contingent upon the stabilisation of long-term interest rates at lower levels. Additionally, inflation remains contained both within the Eurozone and across the broader European market, providing further support despite ongoing global uncertainties.
Since taking on the role of Group CEO at Catella, I have devoted significant time to travelling throughout Europe to engage with our employees and better understand our collective potential. Catella operates as a people-focused organisation, distinguished by exceptional talent and expertise across various markets. The company maintains a robust position both within local markets and as an integrated group, supported by strong liquidity and a solid capital base. Catella is well-positioned to capitalise on emerging market opportunities.
Nevertheless, there remains significant potential to further leverage our strong position. By enhancing alignment across the Group, we can continue to grow assets under management (AUM), establish ourselves as the preferred partner for transactions, attract leading investors and clients and create shareholder value. Given our solid presence in the twelve markets in which we operate, we are well equipped to realise these objectives.
We will continue to sharpen this strategic direction as we progress. Beginning at year-end, the Principal Investment business area, will be incorporated into our core operations. Catella does not intend to independently own or develop real estate assets; rather the aim of the investments is to grow AUM in Investment Management. This is done through seed investments in new in-house funds, co-investments with external capital partners to secure long-term asset management mandates, and investments in development projects alongside majority-owning capital partners. By doing so we sharpen our focus of growing AUM and recurring fixed revenues as the originator of real estate investments.
Another observation is that certain core functions should be more accurately aligned with our organisational structure, particularly given that the majority of our business operates outside Sweden. In this context, I am pleased to announce the recent recruitment of Dominik Röhrich as the new Head of Investment Management, effective March 1, 2026. This appointment represents a significant step forward in our continued commitment to establishing a leading investment management platform, fostering pan-European growth, enhancing performance, and strengthening our institutional partnerships.
This statement highlights our dedication to driving business growth through the development of new products and investment vehicles, securing fixed-fee revenue streams, increasing assets under management, providing transactional advisory services, optimizing operations, and aligning the organization with clear responsibilities and objectives -all consistently focused on maximizing shareholder value.
Nonetheless, I maintain a cautiously positive perspective concerning Catella's progress as well as the stabilised European real estate market. It is prudent to consider the implications of somewhat lower-than-anticipated economic growth in various European economies, which has been influenced by ongoing global trade tensions. Furthermore, persistent geopolitical instability across multiple regions may alter existing market conditions.
Catella reported a third-quarter operating profit of SEK 7 million, compared to SEK 19 million in the same period last year. The decline was primarily attributable to reduced transactional revenues, which are considered a temporary fluctuation. Meanwhile, Catella secured new mandates within Investment Management, resulting in assets under management of SEK 160 billion at quarter-end-an increase of nearly SEK 4 billion from the previous quarter.
Assets under management increased
Within the Investment Management division, we observed moderate progress, although reduced activity in the transaction market had a minor adverse effect. A key positive outcome was the onboarding of multiple management mandates, which has enhanced our foundation of fixed and recurring revenue.
Operating profit remained stable at SEK 31 million compared to SEK 33 million in the previous quarter. This result was achieved despite transactional revenues being approximately SEK 15 million lower, attributable to efficiency improvements implemented within the business area. Transactional activity is expected to improve during the fourth quarter and in 2026.
Mitigating risk in proprietary investments
As previously indicated, our intention is to integrate the Principal Investments business area into our broader organisational framework to further advance our growth strategy by year-end. Nonetheless, we will continue to report on this segment separately throughout the third and fourth quarters of 2025. In the third quarter, our primary emphasis within the business area was on finalising ongoing projects designated for sale and evaluating prospective investments aligned with our strategic objectives.
With property valuations having reached a stable equilibrium, we have established a robust platform for pursuing new, attractive investment opportunities in collaboration with other partners. This approach is fully consistent with our strategic objectives and is underpinned by our strong capital position. By utilising our sound balance sheet, we aim to expand our business, prioritising quality and balanced risk-return.
Temporary dip in transaction market
The transaction market experienced moderate weakness in the third quarter compared to the preceding quarter, though it performed more strongly than during the same period last year. We consider this a brief setback within an otherwise positive trend and remain optimistic about performance in the current quarter and looking ahead to 2026. This development adversely affected the Corporate Finance segment for the quarter. While we provided advisory services on several significant transactions, overall market volumes fell short of expectations. Nonetheless, we are anticipating the fourth quarter with confidence, as it is typically a robust period for transactional activity.
During the quarter, Daniel Gorosch assumed the role of Head of Corporate Finance Europe, aligning with our strategic objectives for pan-European growth and recognising the significant potential within this business area. In collaboration with our Corporate Finance teams, we are committed to reinforcing and growing the business in order to secure leading positions across all our markets.
Outlook
This is my inaugural statement as Group CEO. I am both confident and humbled by my new role and look forward to work alongside our highly skilled colleagues across Europe. As outlined earlier, I am optimistic about the prospects of positive growth in the future. Looking ahead, it is essential to recognise that Catella operates as a people-oriented business, dedicated to delivering exemplary service and solutions to our investors and clients. The mentioned changes to be implemented will further clarify this focus and reinforce our commitment to enhancing shareholder value.
This, together with our positive outlook for market development and our robust liquidity and capital base, gives me confidence in our prospects. We are strategically positioned to capitalise on emerging opportunities, with a clear emphasis on expanding assets under management and undertaking seed investments in funds or mandates aligned with our objectives.
Catella will be presenting the Interim Report and answering questions today at 10.00 a.m. CET.
To participate in the conference, please see: https://financialhearings.com/event/51909
Rikke Lykke, Group CEO
Stockholm, Sweden, 7 November 2025
For further information, please contact:
Michel Fischier
CFO
+46-8-463 33 86
michel.fischier@catella.com
About Catella
Catella is a leading specialist in property investments and fund management, with operations in 12 countries. The group has over EUR 14 billion in assets under management. Catella is listed on Nasdaq Stockholm in the Mid Cap segment. Read more at catella.com.
This information is information that Catella AB 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 2025-11-07 07:00 CET.