Akelius Residential Property (AKEL) Q1 2025 earnings summary

Executive summary

• Rental income rose 9.2% year-over-year to EUR 95 million, with like-for-like growth of 5.3%. Net operating income increased 12.9% to EUR 53 million, and EBITDA grew 14.2% to EUR 51 million, driven by higher occupancy and new lease levels.

• Profit for the quarter was EUR 57 million, up from EUR 12 million a year earlier, aided by a EUR 43 million gain from the sale of Castellum shares and improved property operations.

• Vacancy rate for residential units fell to 3.8% from 5.7% year-over-year, with a real vacancy rate of 1.6%.

• Property fair value stood at EUR 5,832 million, with a marginal value growth of EUR 4 million (0.1%) and a stable capitalization rate of 4.90%.

Financial highlights

• Net asset value was EUR 3,267 million, and equity ratio (including hybrid bonds) was 59%.

• Loan-to-value ratio increased to 37%, slightly above the 35% policy threshold, with Board approval for temporary deviation.

• Net debt was EUR 2,199 million, with average interest rate reduced to 1.07%.

• Interest coverage ratio (12 months) was 5.0, and excluding realized value growth, 6.6.

• Cash and cash equivalents at period end were EUR 172 million; liquidity including unutilized credit facilities and financial assets totaled EUR 217 million.

Outlook and guidance

• Board approved a temporary increase in loan-to-value ratio, citing marginal deviation and strong financial guarantee from the owner.

• Capitalization rates are expected to remain high due to persistent interest rates and market instability.

• Focus remains on reducing vacancies, completing capital projects, and selective acquisitions to improve portfolio quality.