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Introduction & Market Context
Sveafastigheter AB (SVEAF), Sweden’s largest listed pure-play residential company, presented its Q2 2025 results on August 20, 2025, highlighting strong operational performance despite challenges in property valuations. The company, which completed its first year of operations after being formed in June 2024, saw its stock rise 0.64% to SEK 37.44 following the presentation.
The residential property specialist has positioned itself firmly in Sweden’s metropolitan markets, with 94% of its SEK 28.6 billion property portfolio located in the country’s three largest urban regions and university cities.
Quarterly Performance Highlights
Sveafastigheter reported substantial growth in its core operational metrics for Q2 2025, with rental income increasing by 13.0% to SEK 383 million and net operating income (NOI) rising by 19.4% to SEK 269 million compared to the same period last year.
As shown in the following financial highlights chart:
Despite the strong operational performance, the company posted a loss of SEK 155 million for the period, primarily due to negative changes in property values of SEK 137 million and SEK 14 million in non-recurring costs.
For the first half of 2025, the company’s performance was even more impressive, with rental income up 16.5% (5.3% like-for-like) to SEK 759 million and NOI growing 24.3% (9.3% like-for-like) to SEK 487 million compared to H1 2024.
The company has made significant progress in improving its net operating income margin, which increased from 61.7% in Q2 2024 to 65.0% in Q2 2025, as illustrated in this chart:
Occupancy rates have shown steady improvement, reaching 95.0% in Q2 2025 compared to 94.3% in Q2 2024, while the company accelerated its apartment upgrade program, completing renovations on 64 apartments during the quarter compared to just 23 in Q3 2024.
Strategic Initiatives
Sveafastigheter’s property management segment encompasses 15,094 apartments valued at SEK 25.4 billion, with an annual rental value of SEK 1.6 billion. During Q2, the company acquired two properties in Stockholm with an agreed value of SEK 230 million, comprising 137 apartments with an annual rental value of SEK 16.2 million.
The company’s geographic distribution of properties demonstrates its focus on Sweden’s most economically vibrant regions:
On the development front, Sveafastigheter started construction of the Gamla Landsvägen project in Nacka, which will add 87 apartments expected to be completed in Q2 2027. The company also completed the final phases of projects in Umeå and Skellefteå, delivering 161 new apartments.
Sustainability remains a key focus area, with SEK 15 million invested in profitable energy projects during Q2 2025. The company is implementing AI control systems in its properties to optimize temperature management and has removed income requirements from its rental policy for 40% of its portfolio to improve accessibility.
Financial Structure
During the quarter, Sveafastigheter established an MTN-program and Green Bond Framework, subsequently issuing green bonds totaling SEK 1.2 billion in early June. After the quarter’s end, the company completed a tap issue of an additional SEK 500 million.
In a significant milestone, Fitch Ratings assigned Sveafastigheter an investment grade rating of BBB- with a Positive Outlook, reinforcing the company’s financial credibility.
The company maintains a conservative financial profile with a loan-to-value ratio of 43%, an average interest rate of 3.42%, and an interest coverage ratio of 1.9x on a rolling 12-month basis. Equity represents 50% of the capital structure, as shown in this breakdown:
Forward-Looking Statements
Sveafastigheter’s vision is "to be Sweden’s leading residential real estate company," with a mission "to manage and develop homes for more people, where current and future generations can thrive and feel safe."
The company’s earnings capacity shows potential for further growth, with a total rental value of SEK 1.69 billion and projected net operating income of SEK 1.09 billion across its portfolio of properties under management and ongoing construction.
Looking ahead, Sveafastigheter highlighted several key achievements and goals:
CEO Erik Hävermark emphasized the company’s strong growth trajectory, with total net operating income increasing 24.3% during the first half of 2025. The company expects lower non-recurring costs in the second half of 2025 and aims to eliminate such costs entirely by 2026.
With its first year as a company now complete, Sveafastigheter has established itself as a significant player in Sweden’s residential real estate market, focusing on operational efficiency, strategic growth in metropolitan areas, and sustainable development practices.
Full presentation:
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