Neobo Fastigheter (NEOBO) Q3 2025 earnings summary

Executive summary

• Profit from property management increased by 32% year-over-year, reaching SEK 161m, reflecting strong operational performance despite prior-year property divestments.

• Like-for-like rental income rose 4%, with total rental income at SEK 702m for January–September 2025.

• Net operating income increased 10% like-for-like to SEK 395m, driven by higher rents and lower expenses.

• Portfolio value stands at SEK 13.9 billion, with 8,300 apartments and 94% of value in residential properties.

• Highest total occupancy rate ever at 93.1%, up from 92% at establishment.

Financial highlights

• Rental value exceeds SEK 1 billion, supported by a 4.8% rent increase and apartment renovations.

• Net profit for the period was SEK 61m, reversing a loss of SEK -211m year-over-year.

• Surplus ratio improved to 56% for Jan–Sep.

• Loan-to-value ratio stood at 50.4%, and interest coverage ratio at 1.9x for the quarter.

• Net initial yield at 4.0%; average interest rate at 3.4% at period end.

Outlook and guidance

• Continued focus on cost reductions, value-creating investments, and sustainability, targeting a 20% reduction in energy consumption by 2030.

• Ongoing efforts to increase occupancy rates and optimize the property portfolio.

• Transaction market in Sweden improving, with volumes up 38% year-over-year.