Castellum posts softer first-half earnings; sees modest Q2 leasing recovery

Published 15/07/2025, 08:44

Investing.com -- Castellum AB (ST:CAST) reported a decline in income and property management earnings in the first half of 2025, while continuing to invest in growth through development projects and acquisitions.

Rental income in the like-for-like portfolio rose just 0.1% in the January–June period, and net operating income decreased 0.1% on the same basis, both excluding currency effects.

Income from property management dropped 8.7% to SEK 2,222 million, while net leasing turned negative at SEK -182 million for the half-year.

However, net income after tax improved to SEK 191 million, up from a loss in the prior year period. The loan-to-value ratio remained stable at 36.7%, and interest coverage stood at 3.2x.

The company made net investments of SEK 2.8 billion in the first half, including SEK 1.7 billion for acquisitions in Uppsala, Orebro and Linköping. Property value changes remained negative at SEK -1.2 billion for the period.

In the second quarter, Castellum posted a slight gain in net leasing (SEK 2 million), and a 0.4% rise in like-for-like rental income. Still, income from property management declined 10% year-on-year to SEK 1,158 million.

CEO Joacim Sjöberg noted the difficult backdrop but highlighted operational strength: “Castellum remains a very stable company. However, the global environment is uncertain, and we must adapt accordingly.” 

“Given current market conditions, I believe we have navigated effectively and are well positioned for future opportunities," he added. 

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