Stendörren Fastigheter (STEF) Q1 2025 earnings summary

Executive summary

• Achieved 13% year-over-year NOI growth in Q1 2025, with 7% growth in the comparable portfolio and a 15% increase in income from property management.

• Portfolio value reached SEK 14.5bn as of March 31, 2025, with 161 properties focused on logistics, warehouse, and light industrial assets.

• Strategic expansion through acquisitions and project development, including 17 properties acquired for SEK 1.5bn at a 7.0% initial yield in the last four quarters.

• Diversified tenant base with the largest tenant accounting for 8% of rental income and a weighted average lease term of 4.2 years.

• Profit for the period was SEK 107 million, up from SEK 57 million year-over-year, with EPS at SEK 3.24 (1.52).

Financial highlights

• NOI yield stands at 6.4% (12-month average, excluding projects and land).

• Economic occupancy rate at 92% and surplus ratio at 80% as of Q1 2025.

• Equity ratio at 35–36% and interest coverage ratio (ICR) at 2.0x, both meeting stated financial targets.

• Assessed annual rental income capacity of SEK 998m and net operating income of SEK 793m as of April 1, 2025.

• Cash flow from operating activities: SEK 125 million (46), or SEK 4.03 per share (1.63).

Outlook and guidance

• Focus on profitable growth through off-market acquisitions and development of existing building rights, with approximately 39,000 sqm of ongoing projects expected to add SEK 55m in NOI.

• Continued expansion in Greater Stockholm, Mälardalen, and Nordic growth regions, with further growth via acquisitions and operational improvements.

• E-commerce and urbanization trends expected to drive demand for logistics and light industrial properties.