Hufvudstaden (HUFV-A) Q2 2025 earnings summary

Executive summary

• Rent revenue from property management rose to SEK 1,226 million in Q2 2025, up 7% year-over-year, with gross profit increasing 8% to SEK 803 million, reflecting strong operational performance despite market uncertainty.

• Net result for the period was SEK 264 million, a turnaround from a loss of SEK -354 million in Q2 2024, mainly due to lower negative unrealised property value changes.

• Fair value of properties reached SEK 47.4 billion, up from SEK 46.2 billion year-over-year.

• 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

• Unrealised changes in property values were SEK -247 million, an improvement from SEK -994 million in Q2 2024.

• Net reinstatement value per share increased to SEK 183 from SEK 180 year-over-year.

• Equity ratio stood at 57%, slightly down from 58% in the previous year, and net loan-to-value ratio was 22.2%.

• Interest coverage ratio improved to 4.6x from 4.4x year-over-year.

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

Outlook and guidance

• Continued uncertainty in the markets is noted, with office rental market activity expected to remain stable and ongoing interest in modern, flexible office spaces.

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

• Focus areas include leasing, customer satisfaction, sustainability, improved profitability for NK, and stable dividend growth.

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