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Investing.com -- Shares in Fastighets AB Balder (ST:BALDb) rose over 2% on Tuesday after the Swedish property company reported a sharp increase in profit for the first half of 2025, driven by higher rental income and gains in property values.
Profit after tax attributable to the parent company’s shareholders rose to SEK 3.46 billion from SEK 177 million a year earlier, equal to SEK 2.91 per share compared with SEK 0.15.
Profit from property management increased to SEK 3.39 billion from SEK 3.12 billion, with SEK 3.16 billion attributable to the parent company’s shareholders, or SEK 2.65 per share, up from SEK 2.48.
Rental income for the period rose 8% to SEK 6.83 billion from SEK 6.31 billion. The increase was linked to acquisitions, completed development projects, and indexed commercial leases. The economic occupancy rate was 95%, down slightly from 96%.
Net operating income rose to SEK 5.09 billion from SEK 4.66 billion. The surplus ratio increased to 75% from 74%.
Property costs totaled SEK 1.74 billion, up from SEK 1.66 billion. Management and administrative expenses amounted to SEK 578 million, compared with SEK 561 million.
Unrealised changes in the value of investment properties amounted to SEK 1.31 billion, compared with a loss of SEK 899 million a year earlier.
Realised gains were SEK 73 million, up from SEK 2 million. The average yield requirement remained at 4.9%.
As of June 30, the carrying amount of investment properties was SEK 222.6 billion, compared with SEK 212.9 billion a year earlier.
Balder acquired 34 investment and development properties during the period for SEK 6.39 billion, including assets in Malmö, Landskrona and Karlatornet. Total (EPA:TTEF) property investments during the period were SEK 7.28 billion.
The company’s long-term net asset value per share increased to SEK 91.19 from SEK 85.44. The share price was SEK 70.26 at the end of June, down from SEK 72.62.
In the second quarter, profit from property management attributable to the parent company’s shareholders rose to SEK 1.61 billion from SEK 1.50 billion, equal to SEK 1.36 per share, up from SEK 1.28.
Net profit after tax attributable to the parent company’s shareholders was SEK 770 million, little changed from SEK 772 million. Rental income rose to SEK 3.41 billion from SEK 3.19 billion.
The total net financial loss for the first half of the year amounted to SEK 2.08 million, an increase from the SEK 1.96 million loss reported in the prior period.
The average interest rate was 3%. Liquidity, including confirmed loan commitments, totaled SEK 24 billion. Net debt/EBITDA was 11.9 times, down from 13.5 when the target was introduced.