Hufvudstaden (HUFV-A) Q1 2025 earnings summary

Executive summary

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

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

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

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

Financial highlights

• Net revenue from property management: SEK 618.8 million (Q1 2024: SEK 572.7 million).

• Gross profit: SEK 397 million (Q1 2024: SEK 359 million); operating result: SEK 185 million (Q1 2024: -SEK 413 million).

• Unrealised changes in property values: SEK -205 million (Q1 2024: SEK -759 million).

• Net result per share: SEK 0.40 (Q1 2024: SEK -1.96).

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

Outlook and guidance

• Management notes continued market uncertainty but highlights stable demand for attractive office and retail premises.

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