Hufvudstaden (HUFV-A) Q2 2025 earnings summary

Executive summary

• Rent revenue from property management rose 7% year-over-year to SEK 1,226 million, with gross profit up 8% to SEK 803 million, reflecting strong operational performance despite market uncertainty.

• Net result for the period improved to SEK 264 million from a loss of SEK -354 million in the prior year, mainly due to lower negative unrealised property value changes.

• Office rental market activity increased slightly in late Q2, with new leases signed with major tenants; retail sector showed early signs of recovery.

Financial highlights

• Operating result for the half-year was SEK 503 million, a significant turnaround from SEK -283 million year-over-year.

• Unrealised changes in value of investment properties were SEK -247 million, a marked improvement from SEK -994 million in the prior year.

• Net financial income and expense was SEK -167.7 million, with interest coverage ratio at 4.6x.

• Cash flow from current operations before changes in working capital was SEK 581.6 million.

Outlook and guidance

• Activity in the office rental market is expected to remain stable, with ongoing interest in modern, flexible office spaces.

• Retail sector recovery is underway, but some retailers continue to face profitability challenges.

• Major redevelopment projects are progressing, with phased access and completions scheduled through 2026.