Neobo Fastigheter (NEOBO) Q2 2026 earnings summary

Executive summary

• Rental income increased by 4% like-for-like to SEK 469 million for January–June 2026, supported by apartment renovations and lower vacancy rates.

• Net operating income declined by 2% like-for-like to SEK 244 million, mainly due to divestments and higher property costs from colder weather.

• Profit from property management fell 15% to SEK 87 million, or SEK 0.62 per share, down 11%, reflecting divestments and increased costs.

• Property portfolio value remained stable at SEK 13.6 billion, with residential properties making up 94–95% of the total.

• Strategic divestments and investments continue to optimize the portfolio and maximize shareholder value.

Financial highlights

• Economic occupancy rate improved by one percentage point year-over-year to 93.4–93.5%; residential occupancy reached 95.2%.

• Annual rent negotiations resulted in a 3.4% average uplift for the residential portfolio.

• Two property divestments in June: one at a 3% premium to book value and two at an 18% premium.

• SEK 96 million invested in NOI-strengthening initiatives, including renovations and sustainability projects.

• Renovations in Stockholm generated rental increases of 45% and yield on cost above 9%.

Outlook and guidance

• No trend of increasing commercial tenant departures is expected; active efforts underway to secure new tenants.

• Portfolio optimization will continue, focusing on efficiency and concentration in fewer municipalities.

• Board will consider liquidity from recent divestments for future share buybacks.

• Earnings capacity as of July 2026 shows rental income of SEK 967 million, NOI of SEK 547 million, and profit from property management projected at SEK 255 million, or SEK 1.82 per share.

• Net initial yield at 4.0%.