Castellum (CAST) Q4 2025 earnings summary

Executive summary

• Strategy centers on profitability, cost control, leasing, and portfolio optimization, targeting a 10% ROE over the business cycle.

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

• Share buybacks prioritized over dividends due to significant share price discount to NAV, aligning with new capital distribution policy.

• Property values declined by SEK 2.5 billion for the year, mainly due to higher vacancies and lower rental expectations.

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

Financial highlights

• Return on equity for the year was 1.2%, well below the 10% target.

• Rental and service income for 2025 was SEK 9,593 million, down 2.0% year-over-year.

• Net operating income (NOI) decreased by 3.9% to SEK 6,524 million.

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

• Net leasing for the year was -SEK 140 million, with Q1 heavily negative and subsequent quarters positive but insufficient to offset earlier losses.

Outlook and guidance

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

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

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

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