Sagax (SAGA-A) Q2 2025 earnings summary

Executive summary

• Rental revenue rose 10% year-over-year to SEK 2,621M for the first half of 2025, driven by acquisitions and rent indexation.

• Profit from property management attributable to shareholders increased 5% to SEK 2,162M, but profit after tax fell to SEK 1,354M due to negative property and financial instrument revaluations.

• Economic occupancy rate remained stable at 96%, with a diversified tenant base and lease structure.

• The property portfolio expanded to 989 properties with a market value of SEK 66,278M.

• The company maintains a long-term buy-and-hold strategy, focusing on warehouse and light industrial properties in key European markets.

Financial highlights

• Rental revenue for Q2 2025 increased 9% year-over-year to SEK 1,314M.

• Cash flow from operating activities before working capital changes was SEK 2,007M for H1 2025, up from SEK 1,789M.

• Net investments in properties totaled SEK 2,169M, with SEK 1,749M from acquisitions.

• Property revaluation negatively impacted profit by SEK -388M in H1 2025, compared to a positive SEK 202M last year.

• Revaluation of financial instruments resulted in a SEK -148M impact, versus SEK 103M positive last year.

Outlook and guidance

• The 2025 forecast for profit from property management attributable to shareholders remains unchanged at SEK 4,400M.

• Current earnings capacity as of July 1, 2025, shows a run rate yield of 6.7% and net debt/EBITDA of 5.2x.