Stendörren Fastigheter (STEF) Q3 2025 earnings summary

Executive summary

• Achieved strong operational and financial growth in Q3 2025, with net operating income up 18% year-over-year and income from property management before exchange rate changes up 13%; adjusted IFPM up 21% excluding non-recurring refinancing costs.

• Vacancy rate decreased by 1.4 percentage points to 6.3%, with economic occupancy at 94%.

• SEK 1.5bn in property acquisitions and SEK 463m in completed projects over the last twelve months, supporting value creation and future growth.

• Major acquisitions in Västerås, Espoo, Täby, and Upplands Väsby strengthened the portfolio and future cash flow.

• Cash flow from operating activities doubled to SEK 255m, or SEK 8.02 per share.

Financial highlights

• Property portfolio valued at SEK 15.2bn as of September 30, 2025, with a NOI yield of 6.4%.

• Rental income for assessed earnings capacity at SEK 1,049m; net operating income at SEK 842m.

• Surplus ratio at 80% (12-month average); equity ratio at 37%.

• Interest coverage ratio (ICR) at 2.0x; available liquidity of SEK 890m.

• Refinancing activities reduced annual financing costs by SEK 32m, with further SEK 21m reduction expected from post-period actions.

Outlook and guidance

• Improved business cycle and favorable market conditions expected to drive further operational performance and occupancy gains.

• New financial target: annual increase in income from property management per share of at least 15% long-term.

• Ongoing and recently completed projects expected to add SEK 68.5m in NOI upon leasing and completion.

• Significant pipeline of value-accretive acquisitions and projects; continued refinancing to achieve lower debt margins.