Castellum

“During the first half of the year, Castellum returned positive net leasing and net operating income that increased 5.2 per cent. At the same time, the rental market is moving in different directions in both the office and logistics segments. Quality and location are becoming increasingly important, and the dialogues with new tenants are intense. Both the banking market and the bond market are offering favourable terms, and the transaction market is beginning to gain momentum. In summary, we are experiencing growing optimism going into the autumn,” says Joacim Sjöberg, Chief Executive Officer of Castellum AB.

January–June 2024

• Income totalled SEK 4,977 M (4,913), of which SEK 64 M (0) pertains to estimated indemnity[1]. In the like-for-like portfolio, rental income increased 2.6 per cent (9.8).
• New leases have been concluded for 128,000 square metres (161,000) and an annual rent of SEK 263 M (320). Net leasing totalled SEK 6 M (-31) for the period and SEK -30 M (21) for the last 12 months.
• Net operating income totalled SEK 3,391 M (3,222), corresponding to an increase of 5.2 per cent.
• Income from property management totalled SEK 2,435 M (2,093), corresponding to an increase of 16.3 per cent.
• Net investments totalled SEK -474 M (-1,837), of which SEK 1,024 M (1,569) pertains to new construction, extensions and reconstructions, SEK 52 M (0) to acquisitions and SEK -1,550 M (-3,406) to sales.
• Changes in value of investment properties for the period totalled SEK -1,576 M (-6,618), corresponding to -1.1 per cent (-4.3). The value of the property portfolio amounted to SEK 135.8 Bn (137.6) at the end of the period.
• The loan-to-value ratio was 37.5 per cent (37.4).
• The interest coverage ratio for the latest twelve-month period was 3.3 (3.1) and interest-rate hedging was applied to 65 per cent (73) of the loan portfolio at the end of the period.

April–June 2024

• Income totalled SEK 2,528 M (2,462), of which SEK 64 M (0) pertains to estimated indemnity¹. In the like-for-like portfolio, rental income increased 2.3 per cent (8.9).
• New leases have been concluded for 64,000 square metres (92,000) and an annual rent of SEK 135 M (188). Net leasing totalled SEK 3 M (21).
• Net operating income totalled SEK 1,773 M (1,685), corresponding to an increase of 5.2 per cent.
• Income from property management totalled SEK 1,287 M (1,077), corresponding to an increase of 19.5 per cent.
• Net investments totalled SEK -709 M (-2,275), of which SEK 576 M (861) pertains to new construction, extensions and reconstructions, SEK 19 M (-6) to acquisitions and SEK -1,304 M (-3,130) to sales.
• Changes in value of investment properties for the period totalled SEK -557 M (-651), corresponding to -0.4 per cent (-0.4).

Annex: Half-year report January–June 2024

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

[1] Other income pertains to estimated indemnity after major water damage in one of Castellum’s properties, with the damage affecting the property value via a negative change in value. The damage has thus not had any impact on Castellum’s financial position. Other income is excluded from the performance analysis in the report for key financial metrics pertaining to income and net operating income.