Atrium Ljungberg (ATRLJ) Q1 2025 earnings summary

Executive summary

• Stable performance and strong financial position maintained despite global uncertainty and a weak rental market, with positive net letting and increased operating surplus in the comparable portfolio.

• Largest transaction to date closed with Stockholm University of the Arts, securing a 20-year lease for over 20,000 m² in Slakthusområdet.

• Diversified customer base and resilient retail mix support stability.

• Significant ongoing project investments totaling SEK 9.5 billion, with several completions expected by end of 2025 and start of 2026.

Financial highlights

• Profit from property management SEK 328m, down 12% compared to Q1 last year; net operating income (like for like) SEK 517m, up 2% year-over-year.

• Rental income SEK 735m, down 3% year-over-year; operating surplus SEK 519m, down 4%; comparable portfolio rental income up 3.2%, operating surplus up 2.2%.

• Changes in property value SEK 179m, up 0.3% in Q1; unrealised property value change up from SEK -7m.

• Earnings per share 3.59 SEK (3.22), up 12% before stock split.

• Investments SEK 626m (up from SEK 433m).

Outlook and guidance

• Ongoing projects total SEK 9.5bn, with SEK 6.1bn remaining to be invested; project pipeline exceeds SEK 40bn, with annual investment target up to SEK 3bn and project returns of at least 20%.

• Market unpredictability and economic caution expected to persist, especially in offices and retail.

• Several major projects in Stockholm, Uppsala, Gothenburg, and Malmö progressing on schedule; completions expected to boost operating surplus in 2025/2026.

• Residential market remains cautious due to inflation and interest rate uncertainty, but some positive sales momentum noted.