Atrium Ljungberg (ATRLJ) Q2 2025 earnings summary

Executive summary

• Net operating income in the like-for-like/comparable portfolio increased by 1% in Q2 and 2% in H1 2025, reflecting resilience amid challenging market conditions.

• Profit from property management declined by 13% year-over-year to SEK 644m, mainly due to property disposals and higher interest costs.

• Net letting was negative SEK 9m in Q2 but positive SEK 14m for H1, mainly impacted by Ericsson vacating premises and new leases in key cities.

• Ongoing project investments total SEK 9.6bn, with several completions expected by end of 2025 and early 2026.

• Major new lease signed with Ericsson in Gothenburg and several new agreements in Stockholm, Gothenburg, Malmö, and Hagastaden.

Financial highlights

• Rental income in Q2 was SEK 725m (down from SEK 753m); H1 2025 rental income was SEK 1,461m (1,508), with like-for-like portfolio up 2.1%.

• Operating surplus was SEK 524m in Q2 and SEK 1,043m in H1 2025, with like-for-like increases.

• Profit from property management was SEK 317m in Q2 and SEK 644m in H1 2025, down 15% and 13% year-over-year.

• Earnings per share were SEK 0.82, affected by negative derivative value changes.

• Property portfolio value increased to SEK 59.9bn at quarter-end.

Outlook and guidance

• No revenue impact from lease terminations expected in 2025; 41% of lease maturities are from 2030 onwards.

• Ongoing projects expected to positively impact operating surplus in 2026, depending on leasing progress.

• Economic recovery remains slow, but improved consumer confidence and interest rate cuts are expected to support gradual recovery in residential and retail segments.

• Ambition to invest around SEK 3bn annually, with SEK 1.4bn invested so far this year.