Stendörren Fastigheter (STEF) Q2 2025 earnings summary

Executive summary

• Net operating income increased 17% and income from property management rose 13% in H1 2025, with rental income up 15% to SEK 510 million.

• Portfolio value reached SEK 14.9bn as of June 30, 2025, with 167 properties and 887,000 sqm lettable area.

• Occupancy rate improved to 94.1%, driven by strong net leasing and low tenant bankruptcies.

• Profit for the period was SEK 90 million, down from SEK 155 million last year, mainly due to negative derivative value changes and exchange rates.

• SEK 705 million in available liquidity at period end, with strong acquisition and project development activity.

Financial highlights

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

• Surplus ratio at 80% (12-month average).

• Net letting of SEK 3m in H1 2025; vacancy decreased by 1.9 percentage points to 5.9%.

• Assessed annual operating net of SEK 837m as of July 1, 2025.

• Cash flow from operating activities: SEK 148 million (up from SEK 49 million year-over-year).

Outlook and guidance

• Continued focus on profitable growth through off-market acquisitions and project development.

• Targeting return on equity of at least 12% and EPRA NAV growth of at least 15% p.a.

• Expected annual net operating income of SEK 837 million and income from property management of SEK 426 million.

• Ongoing and recently completed projects expected to add SEK 53 million in net operating income upon leasing and completion.

• Management anticipates continued profitable growth, supported by high occupancy, reduced financing costs, and robust demand for modern premises.