Wallenstam (WALL) Q1 2025 earnings summary

Executive summary

• Net operating income increased 7% year-over-year to SEK 570 million, driven by higher rental income and new construction completions.

• Profit after tax rose to SEK 573 million, up from SEK 333 million in Q1 2024, supported by positive property revaluations and financial instrument gains.

• 343 apartments were completed and let during the quarter, with 1,177 apartments under construction and two new projects started (216 apartments).

• Major property transactions included the acquisition of Sergelgatan property in Stockholm and the divestment of four commercial properties in Gothenburg.

• Continued share buybacks, now holding 10 million shares, with 5 million repurchased during the quarter.

Financial highlights

• Rental income for Q1 2025 was SEK 772 million, up from SEK 719 million in Q1 2024, with a 7% increase year-over-year.

• Net operating income reached SEK 570 million, with a surplus ratio of 73.8%.

• Income from property management increased to SEK 340 million, up almost 16% year-over-year.

• Profit before tax was SEK 548 million, compared to SEK 441 million in Q1 2024.

• Property value increased to SEK 68.1 billion, up from SEK 65.6 billion at year-end 2024.

Outlook and guidance

• 1,177 apartments remain under construction, with several major projects scheduled for completion in 2025–2027.

• The business plan targets a net asset value of SEK 100 per share by 2030, with a minimum equity/assets ratio of 35%.

• Management expresses confidence in continued value creation, citing strong financial position, robust demand, and ongoing development projects.

• Ongoing focus on energy efficiency and climate goals, including new energy-saving projects.

• Stable demand for both residential and commercial properties, with residential occupancy at 100% and commercial at 91%.