Castellum (CAST) Q4 2025 earnings summary

Executive summary

• Focused on a 'back to basics' strategy emphasizing cost control, staff reductions, leasing, and portfolio optimization to achieve a 10% return on equity over the business cycle, with share buybacks prioritized over dividends.

• Staff reduction of 30 people in Q4 led to SEK 40 million in one-off costs, with expected ongoing savings of a similar amount.

• Net income after tax for the year was SEK 938 M, down from SEK 2,357 M, with EPS at SEK 1.91 (4.79).

• Leading Nordic property company with SEK 137 Bn property value and SEK 9.3 Bn yearly contracted rent.

• Board adopted a new strategy focused on profitability and capital allocation, including cost reductions and divestments.

Financial highlights

• Full-year property value declined by SEK 2.5 billion, mainly due to changes in expected future cash flows and higher vacancies.

• Rental and service income for 2025 was SEK 9,593 M, down 2.0% year-over-year, with a 0.3% like-for-like increase excluding currency effects.

• Net operating income (NOI) was SEK 6,524 M, a decrease from SEK 6,786 M, with a 1.0% like-for-like NOI decrease.

• Income from property management fell 4.4% to SEK 4,606 M.

• Net leasing for the year was -SEK 140 million, with Q1 heavily negative due to major tenant events, but Q2–Q4 positive.

Outlook and guidance

• No specific forecasts for vacancy reduction or net leasing turnaround; management expects conditions may worsen before improving.

• The Board intends to carry out share repurchases equal to 25% of income from property management for 2025, with no cash dividend proposed.

• CapEx spending expected to remain at similar levels in coming years.

• Focus remains on cost control, reducing vacancies, and divesting non-core assets to improve profitability.

• Credit margins remain at historically low levels, with a stable to slightly decreasing average interest rate of 3.1%.