Neobo Fastigheter (NEOBO) Q2 2025 earnings summary

Executive summary

• Profit from property management increased by 50% year-over-year to SEK 102 million, driven by higher rental income and cost efficiencies, despite divesting seven properties last year.

• Like-for-like rental income rose 4% to SEK 466 million and net operating income improved by 12% to SEK 260 million.

• Surplus ratio reached a record 65% for the quarter and 56% on a rolling 12-month basis.

• Property portfolio valued at SEK 13.8 billion with 8,300 apartments and positive unrealized value changes of SEK 11 million.

• Net profit for the period was SEK -1 million, mainly due to negative changes in the value of financial instruments.

Financial highlights

• Rental income in the like-for-like portfolio increased by 4% year-over-year to SEK 466 million.

• Net operating income improved by 12% year-over-year to SEK 260 million.

• Surplus ratio reached 65% in Q2, the highest on record.

• Loan-to-value ratio was 50.7% as of June 2025.

• Average interest rate on debt is 3.4%, with a high hedge ratio of 83%.

Outlook and guidance

• Rent negotiations for 2025 completed with an average increase of 4.8% in the residential portfolio.

• Management signals a positive outlook, supported by strong results and stabilized property values.

• The company is prepared to increase transaction activity as the market recovers, aiming to reinvest capital from recent divestments.

• Approximately 100 apartment renovations are estimated for the year.

• Optimism about future vacancy trends as 30 apartments are under renovation in high-occupancy areas.