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Introduction & Market Context
Catena AB (STO:CATE) presented its Q3 2025 results on October 24, 2025, highlighting strong financial performance despite the company’s shares falling 2.52% following the announcement. The logistics property specialist reported significant growth across key metrics, driven by strategic acquisitions and a strengthening e-commerce market that grew 9% during the period.
CEO Jörgen Eriksson emphasized the company’s growth strategy during the presentation, stating, "We will definitely grow. When we find the opportunities that fit in our strategy, we will go for it." This approach comes amid increased activity in the Swedish transaction market, where Catena is positioning itself to capitalize on new opportunities.
Quarterly Performance Highlights
Catena delivered impressive financial results for Q3 2025, with rental income increasing 25% year-over-year to SEK 1,963 million, up from SEK 1,566 million in Q3 2024. Profit from property management rose even more dramatically, jumping 32% to SEK 1,202 million compared to SEK 911 million in the same period last year.
As shown in the following summary of Q3 performance:
The company’s profit from property management per share reached SEK 19.91, an 18.7% increase from SEK 16.78 in Q3 2024. This growth trajectory has been consistent, with the presentation highlighting a steady increase in profit from property management from SEK 719 million in 2020 to the current SEK 1,202 million.
Rental growth was primarily driven by acquisitions (19.7%), followed by project development (4.4%) and like-for-like growth (3.4%), with the latter mainly resulting from CPI-linked increases in existing contracts. The company’s strategic divestments resulted in a 2.2% negative impact on rental income.
As illustrated in this breakdown of rental development factors:
Portfolio and Customer Base
Catena’s property portfolio consists of 136 properties with a total lettable area of 3,151,000 square meters and a combined value of SEK 43,873 million. The portfolio maintains a strong economic letting ratio of 96.6% and a weighted average lease expiry (WALE) of 6.5 years, providing stable long-term cash flows.
The company’s customer base is dominated by major logistics and transport companies, with DSV accounting for 18% of contractual value, followed by DHL (8%) and ICA (6%). The top ten customers represent 55% of Catena’s contractual value, demonstrating both concentration risk and the quality of its tenant relationships.
The following slide illustrates Catena’s diversified customer base by sector:
The logistics and transport sector represents nearly half (49%) of Catena’s customer base, with non-durable goods and durable goods each accounting for 18%. This sectoral focus aligns with the company’s strategic positioning as a specialist in logistics properties.
Development Projects and Future Growth
Catena is actively pursuing development opportunities to drive future growth. The company’s current development projects include a 9,800 square meter facility for San Sac in Linköping, a 5,850 square meter expansion for Boozt in Ängelholm, and a substantial 75,000 square meter development for Nowaste Logistics in Helsingborg.
These ongoing projects are visualized in the following development map:
Beyond current developments, Catena maintains an impressive land bank for future growth. The company has potential development land totaling 4.5 million square meters, which could support approximately 1.6 million square meters of gross leasable area with a potential investment value of SEK 16,300 million.
A significant acquisition during the quarter was the Elgiganten property in Torsvik, Jönköping, representing an investment of SEK 1,275 million for a 112,000 square meter facility on a 232,000 square meter land plot. The property is certified BREEAM In-Use Very Good, aligning with Catena’s sustainability goals.
Sustainability Progress
Sustainability remains a core focus for Catena, with the company making steady progress toward its 2030 targets. Currently, 58% of the company’s lettable area is environmentally certified, a significant increase from 46% in 2024 and 39% in 2023.
The company’s sustainability performance is detailed in this comprehensive overview:
Catena is working toward net-zero greenhouse gas emissions by 2030, though the data shows mixed progress with increases in Scope 1-2 emissions. The company reported a decrease in Scope 3 emissions due to fewer projects during the period. The EU Taxonomy alignment shows strong progress, with 76% of turnover, 66% of investments, and 64% of costs classified as "aligned."
Financial Position and Outlook
Catena maintains a strong financial position with an equity ratio of 51% and a loan-to-value ratio of 39.2%, well below its policy ceiling of 50%. The company’s interest coverage ratio stands at 3.9x, comfortably above its policy minimum of 2.0x.
The following slide illustrates Catena’s solid financial metrics:
The company has successfully managed its debt profile, with an average debt maturity of 4.6 years and an average cost of debt of 3.2%. During Q3, Catena refinanced SEK 950 million in bank loans at improved margins and issued SEK 1,000 million in senior unsecured bonds.
Interest rate management remains a priority, with an interest hedge ratio of 59% and an average interest maturity of 2.4 years, providing stability against market fluctuations. The company noted that the Swedish Riksbank lowered its policy rate to 1.75% in September, while markets anticipate no further adjustments until the end of 2026.
Looking ahead, Catena’s management expressed optimism about market conditions, highlighting increased activity in the transaction market and ongoing discussions regarding new developments. With its strong financial position, robust development pipeline, and strategic focus on the growing logistics sector, Catena appears well-positioned for continued growth despite the market’s cautious reaction to its Q3 results.
Full presentation:
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