Catena (CATE) Q1 2025 earnings summary

Executive summary

• Rental income increased 31% year-over-year to SEK 644 million, driven by acquisitions, indexation, and projects, with a high occupancy rate of 96.5%.

• Profit from property management rose 40% to SEK 398 million, and earnings per share from property management increased 18% to SEK 6.60.

• EPRA NRV per share increased to SEK 429, and the balance sheet remains robust with LTV at 37.8%.

• Strong cash flow and liquidity position support further growth opportunities despite market volatility.

• 53% of lettable area is environmentally certified, with a target of 100% by 2030.

Financial highlights

• Net operating surplus grew 36% year-over-year, with a surplus ratio improving to 83%.

• EPRA Earnings per share increased to SEK 6.23 from SEK 5.31 year-over-year.

• Loan-to-value ratio at 37.8%, net debt/EBITDA at 7.1x, and interest coverage ratio at 4.0x.

• EPRA NRV per share at SEK 429; property value increased to SEK 41,476 million.

• SEK 650 million in bank loans refinanced and SEK 500 million bond issued at Stibor +0.95%.

Outlook and guidance

• Management expects strong cash flows and is well-positioned for continued growth with a robust balance sheet.

• Market remains volatile with cautious customer sentiment and slow decision-making on new developments.

• More acquisition opportunities anticipated in both Sweden and Denmark, with higher activity in Denmark.

• European central banks signaling rate cuts, but long-term rate path remains uncertain.

• Sustainability remains a strategic focus, targeting 100% environmental certification by 2030.