Catena (CATE) Q3 2025 earnings summary

Executive summary

• Rental income increased by 25% year-over-year to SEK 1,963 million, mainly driven by acquisitions and CPI-linked contracts.

• Profit from property management rose 32% year-over-year to SEK 1,202 million, with EPS from property management up 18.7% to SEK 19.91.

• Balance sheet remains robust with LTV at 39.2% and equity ratio at 51%.

• EPRA NRV per share reached SEK 438.

• 58% of total area is environmentally certified, supporting future growth.

Financial highlights

• Net operating surplus increased by 28% year-over-year to SEK 1,633 million.

• EPRA Earnings per share were SEK 18.93; surplus ratio improved to 83.2%.

• Net debt to EBITDA at 7.8x, interest coverage at 3.9x, and average cost of debt at 3.2%.

• Loan-to-value ratio at 39.2%; equity ratio at 51%.

• EPRA net initial yield at 5.6%; exit/valuation yield at 5.9%.

Outlook and guidance

• Management expects continued strong cash flows and sees opportunities for further growth due to increased transaction market activity.

• New business plan targets at least 10% annual compounded growth in profit from property management per share and at least 12% annual compounded growth in net asset value per share over five years.

• Sustainability targets updated: net zero GHG emissions across all scopes by 2040, with at least 50% reduction by 2030.

• Fitch affirmed investment-grade rating BBB with stable outlook.

• Policy allows LTV up to 50%.