Castellum (CAST) Q4 2024 earnings summary

Executive summary

• Achieved a strong financial position, enabling new investments in existing portfolio, project developments, and acquisitions, including the Infinity office project in Stockholm and increased stake in Entra, triggering a mandatory offer.

• Income from property management rose 10.2% year-over-year to SEK 4,819M, driven by lower costs and stable rental income.

• Net leasing was positive at SEK 13M for the year, with new leases totaling SEK 609M in annual rent.

• The Board proposes a dividend of SEK 2.48 per share after two years of suspended dividends, totaling approximately SEK 1.2 Bn.

• Received new S&P credit rating of BBB, complementing Moody's rating and improving capital market position.

Financial highlights

• Net operating income increased 3.4% to SEK 6,786M; income from property management up 10.2% to SEK 4,819M.

• Like-for-like portfolio income increased by SEK 199M (2.3%), mainly from indexation.

• Changes in property values were negative at SEK -1,627M (-1.2%), but Q4 saw the first positive change since Q3 2022.

• Loan-to-value improved to 35.6% from 37.4%; interest coverage ratio at 3.3 (up from 3.0).

• Cash and unutilized credit facilities at year-end totaled SEK 26.4Bn.

Outlook and guidance

• Confident that 2025 will be a stronger year for the Nordic economies and for business, with expectations of increased consumption and public spending.

• Expect higher investments in ongoing projects and portfolio in 2025 compared to 2024, focusing on higher-quality assets.

• Regional cities expected to remain strong, with continued focus on project development and sustainability.

• No significant tenant departures anticipated for 2025.

• The company is well-positioned for future investment opportunities, supported by a strong balance sheet and liquidity.