Diös Fastigheter (DIOS) Q1 2025 earnings summary

Executive summary

• Income from property management grew 10% year-over-year to SEK 221 million in Q1 2025, with revenue at SEK 661 million and operating surplus up 5% to SEK 427 million, driven by finalized projects and stable property costs.

• Economic occupancy declined to 90% from 92% year-over-year, impacted by divestments, asset rotation, and market vacancies.

• Surplus ratio improved to 66% from 65% year-over-year; energy efficiency rose 6.6% quarter-over-quarter.

• Net letting remained positive in 23 of the last 25 quarters, with SEK 1 million positive net letting in Q1 and a majority of new leases being green agreements.

• SEK 1.6 billion Umeå property acquisition aligns with growth strategy and is expected to add 4% to property management income per share.

Financial highlights

• Operating surplus up 5% to SEK 427 million; income from property management up 10% to SEK 221 million compared to Q1 last year.

• Like-for-like rental growth at 0.7%, below CPI of 1.6%, due to higher vacancies from asset rotation and new developments.

• Net profit after tax was SEK 162 million, down from SEK 259 million in Q1 2024, mainly due to lower unrealised derivative gains and tax.

• Surplus ratio at 66% in Q1 2025, up from 65% in Q1 2024.

• 97% of commercial leases indexed, 94% tied to CPI, supporting rental income resilience.

Outlook and guidance

• Expectation of further interest rate cuts by Riksbanken, supporting lower average interest rates.

• Vacancy trend anticipated to improve in H2 2025 as positive net lettings take effect.

• Continued focus on growth through acquisitions in high-potential cities, asset rotation, and operational optimisation.

• Long-term LTV target between 45% and 55%; net debt to EBITDA at 10x.

• Dividend of SEK 0.55 per share per quarter approved for 2025.