Backaheden Fastighets (BACKA) Q1 2025 earnings summary

Executive summary

• Rental income including service charges rose to 20,851 tkr from 17,477 tkr year-over-year, with net operating income at 17,372 tkr versus 13,841 tkr.

• Net profit for the period was 4,115 tkr, down from 6,543 tkr year-over-year, mainly due to negative unrealized value changes.

• Operations and cash flow developed according to plan, supported by inflation-protected leases and largely fixed-rate financing.

• The property portfolio remains fully leased, with major tenants including Santa Maria (65% of rental value), Hedin Group (15%), and Region Halland (10%).

Financial highlights

• Operating profit (Förvaltningsresultat) increased to 11,189 tkr from 8,686 tkr year-over-year.

• Earnings per share were 0.82 kr (1.30 kr), but adjusted EPS excluding unrealized value changes was 1.93 kr (1.62 kr).

• Return on equity was 3.31% (5.55%), adjusted to 7.82% (6.92%) excluding unrealized value changes.

• Cash flow from operations was 29,886 tkr, up from -1,845 tkr year-over-year.

• Market value of properties increased to 1,092,300 tkr from 1,019,342 tkr.

Outlook and guidance

• Focus remains on refinancing the 459,000 tkr bank debt maturing in December 2025, with no dividend proposed to strengthen the balance sheet.

• Long-term earnings capacity per share estimated at 8.25 kr as of April 2025.