Diös Fastigheter (DIOS) Q2 2025 earnings summary

Executive summary

• Income from property management grew 12% in Q2 2025, driven by acquisitions, completed projects, and dynamic transactions, with economic occupancy stable at 90%.

• Surplus ratio improved to 73% in Q2 2025 from 71% in Q2 2024, reflecting lower credit losses and costs.

• Asset rotation included a SEK 1.66 billion acquisition in Umeå and a SEK 706 million divestment in Borlänge above book value.

• Portfolio focused on centrally located properties in growth cities, with ongoing adaptation, value-adding investments, and sustainability initiatives.

• Rental market remains resilient, with renegotiations at same or higher rents and high CPI-linked indexation.

Financial highlights

• Revenue grew 5% year-over-year to SEK 666m in Q2 2025; operating surplus up 7% to SEK 479m; property management income up 12% to SEK 268m.

• Net letting was SEK 2m in Q2 and SEK 3m for H1, positive in 24 of the last 26 quarters.

• Unrealised property value changes were SEK -130m in Q2; derivative value changes SEK -107m in Q2.

• Surplus ratio at 73%; economic occupancy rate stable at 90%.

• Market value of properties at SEK 32.6 billion; SEK 223 million invested in projects this quarter.

Outlook and guidance

• Positive outlook for H2 2025, expecting increased leasing, transaction activity, and rental growth as vacancies are anticipated to decline.

• Targeting long-term property management income growth of 10% per year and average return on equity of at least 12% over five years.

• Long-term outlook for the green transition remains robust, supporting accelerated growth.