Hufvudstaden (HUFV-A) Q1 2025 earnings summary

Executive summary

• Net revenue from property management rose to SEK 619 million in Q1 2025, up 8% year-over-year, with gross profit increasing to SEK 397 million, up 11% from Q1 2024.

• Net result for the period was SEK 81 million, a turnaround from a loss of SEK -396 million in Q1 2024, mainly due to lower negative unrealised property value changes.

• Vacancy rate excluding development projects improved to 6.6%, reflecting stable demand for prime office and retail space despite market uncertainty.

• Fair value of investment properties stood at SEK 47.2 billion, slightly up from SEK 47.1 billion at year-end.

• Retail sector recovery remains delayed, but several new high-profile tenants were secured during the quarter.

Financial highlights

• Unrealised changes in property values were SEK -205 million, compared to SEK -759 million in Q1 2024.

• Net reinstatement value per share increased to SEK 182 from SEK 180 year-over-year.

• Equity ratio was 57%, slightly down from 58% in Q1 2024.

• Interest coverage ratio improved to 4.6x from 4.0x year-over-year.

• Cash flow from current operations was SEK 170 million; cash and cash equivalents at period-end were SEK 395 million.

Outlook and guidance

• Continued uncertainty in the markets is expected, with management highlighting stable demand for attractive office and retail premises.

• Retail recovery is slower than anticipated, with households still restraining spending.

• Focus remains on leasing, customer satisfaction, sustainability, and profitability for NK.

• Assets in prime locations are expected to maintain stable demand.

• Stable dividend growth is anticipated over time.