John Mattson Q2 2025 slides: 23% profit growth drives strong quarterly performance

Introduction & Market Context

John Mattson Fastighetsforetagen AB (STO:JOMA) presented its second quarter 2025 results on July 10, showcasing strong performance that exceeded key financial targets. The Swedish property company’s shares rose 0.92% following the presentation, trading at 65.6 SEK compared to the previous close of 65 SEK, reflecting positive investor sentiment toward the quarterly results.

The company, which focuses on residential properties primarily in the Stockholm region, reported significant profit growth and positive value development while advancing its development pipeline across key Stockholm submarkets.

Quarterly Performance Highlights

John Mattson delivered exceptional profit growth of 23% per share in Q2 2025, substantially exceeding its target of 10%. This performance was driven by a 5% increase in revenue, a 1% decrease in property costs, and an 8% increase in operating surplus.

The company also reported substance value growth of 10.2% per share, outperforming its 7% target. This growth was attributed to stable return requirements, an improved surplus rate, and a property value increase of 0.5% for the quarter.

As shown in the following performance comparison against targets:

Additional operational highlights included a 9% year-to-date reduction in energy use compared to 2024, completion of the first stage of the Rotebro upgrade project, and finalization of the Gengasen 4 refurbishment in Örby, which delivered 11 apartments. The company also signed an agreement for a project including 80 assisted-living spaces in Abrahamsberg (Bromma).

Property Portfolio and Development Projects

John Mattson’s property portfolio spans four administrative regions across the Stockholm area, comprising 4,325 apartments with a total leasable area of 345,000 square meters. Residential properties account for 82% of the leasable area, with the portfolio distributed across Norrort, Lidingö, City/Bromma, and Söderort/Nacka.

The following map illustrates the company’s geographic distribution:

The company maintains a robust development pipeline of 730 apartments across seven projects, with production starts scheduled between 2026 and 2029. Key developments include:

1. Geografiboken, Abrahamsberg (80 apartments) - Production start 2026

2. Finnboda, Nacka (40 apartments) - Production start 2026

3. Ekporten, Larsberg/Dalénum (90 apartments) - Production start 2027

4. Pincetten and Lansetten, Örnsberg (260 apartments combined) - Production start 2028

5. Juno, Käppala (50 apartments) - Production start 2028

6. Hjälpslaktaren, Slakthusområdet (210 apartments) - Production start 2029

The development project locations and details are presented in this comprehensive overview:

Detailed Financial Analysis

John Mattson reported rental income of 170.3 million SEK for Q2 2025, with property costs of 40.2 million SEK, resulting in an operating surplus of 130.1 million SEK. The company achieved a strong surplus rate of 72.3% and maintained a high economic occupancy rate of 97.2%.

Profit before tax stood at 63.0 million SEK, with profit for the period reaching 39.1 million SEK. The consolidated income statement shows consistent improvement compared to the same period in 2024:

The company’s property value increased to 14,381.0 million SEK, up from 14,251.3 million SEK at the beginning of the period. This growth was driven by investments in new buildings (5.4 million SEK), upgrades (48.4 million SEK), and a positive change in property values (68.4 million SEK).

Financial Position

As of June 30, 2025, John Mattson reported total equity of 6,284.9 million SEK, with 6,199.0 million SEK attributable to parent company shareholders. The company maintained interest-bearing liabilities of 6,761.0 million SEK and an equity ratio of 46.9%.

The company’s financing structure features an average debt maturity of 2.7 years and an average interest rate maturity of 3.3 years, with an average interest rate of 2.8%. The financing overview demonstrates a balanced approach to debt management:

Strategic Initiatives

John Mattson continues to focus on the Stockholm region as its primary market for growth, citing strong competitive positioning. The company’s strategy emphasizes both organic growth through property development and value-enhancing investments in existing properties.

The company’s rental rates compare favorably to market willingness-to-pay metrics, suggesting potential for continued rental growth. Management highlighted the completion of key renovation projects and the advancement of the development pipeline as important steps in executing their growth strategy.

Looking ahead, John Mattson remains committed to exceeding its financial targets while pursuing sustainable growth opportunities across the Stockholm region. The company’s strong Q2 2025 performance provides a solid foundation for continued execution of its strategic initiatives.

Full presentation:

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