Castellum (CAST) Q3 2025 earnings summary

Executive summary

• Focus has shifted to profitability, efficiency, and active portfolio management, with a 'Back to Basics' strategy and a target ROE of 10%.

• Leadership changes included a new CEO and board members, emphasizing leasing, cost control, and strategic property ownership in prime locations.

• The property portfolio is valued at SEK 159 Bn, with 5.3 million sq. m. lettable area and 69% sustainability-certified.

• Strategic review is ongoing, with a formal update expected in the future.

Financial highlights

• Rental and service income for Jan–Sep 2025 was SEK 7,196 M, down 2.8% year-over-year, with NOI at SEK 4,908 M, a 4.4% decline.

• Net leasing was negative SEK 166 M for the period, with new leases of SEK 532 M and terminations of SEK 698 M.

• Occupancy rate declined to 90%, down 1.2% year-over-year, driven by increased vacancies.

• Property values written down by SEK 1.4 billion (1%), reflecting tenant defaults and lower cash flow expectations.

• Net investments reached SEK 3.5 billion, including SEK 2,085 M in property investments and SEK 2,031 M in acquisitions.

Outlook and guidance

• Vacancies expected to rise in coming quarters due to weak net leasing and challenging market conditions, especially in major cities.

• Management is focused on improving leasing performance, cost efficiency, and actively managing the portfolio for profitability.

• Credit margins remain at historic lows, with a stable to slightly decreasing interest rate outlook.