FastPartner (FPAR) Q2 2025 earnings summary

Executive summary

• For the first half of 2025, rental income decreased by 1.8% to SEK 1,132.2m, while net operating income fell 2.0% to SEK 790.5m, but management income rose 25.8% to SEK 411.0m year-over-year.

• The rolling annual management income reached SEK 880m, and the long-term net asset value per A share (NRV) was SEK 97.4.

• Property market value was SEK 33,902.7m, with unrealized property value changes of -SEK 195.7m.

• Result after tax was SEK 119.9m, down from SEK 372.8m year-over-year.

• The company targets a rolling annual management income of SEK 1,100m by end-2025.

Financial highlights

• Q2 rental income fell 2.4% to SEK 560.7m, net operating income dropped 1.4% to SEK 417.0m, and surplus ratio increased to 74.4%.

• Q2 management income rose 20.2% to SEK 225.7m, mainly due to lower interest costs.

• Q2 unrealized property value changes were -SEK 195.7m; result before tax was -SEK 12.0m.

• Cash flow from operations before working capital changes was SEK 314.9m for H1 2025.

• Net debt/EBITDA was 9.6x, and interest coverage ratio was 2.3x.

Outlook and guidance

• Management expects a 12–15 month period of lower rental income in key properties, followed by outperformance as re-leasing and upgrades are completed.

• The company maintains its target of SEK 1,100m rolling annual management income by year-end 2025.

• Two further 25bp interest rate cuts are anticipated in 2025, expected to further lower financing costs.