Sweden’s Castellum shares tumble as Q1 results point to deteriorating fundamentals

Published 06/05/2025, 08:56
© Reuters

Investing.com -- Castellum AB (ST:CAST) shares tumbled more than 8% on Tuesday after the company reported disappointing results for the first quarter of 2025. 

The Sweden-based property giant posted a 2.6% year-on-year decline in total income for the first quarter of 2025, totaling SEK 2,386 million. Like-for-like (LFL) rental income was down 0.2%, with gains from indexation offset by increased vacancies.

Net operating income fell 2.8% year-on-year to SEK 1,572 million, compared to a 3.4% increase for full-year 2024. On a like-for-like basis and excluding currency effects, operating income was broadly stable. Lease renegotiations saw a 4% rental decline, widening from a 1% drop in FY-2024, while lease extensions remained flat.

"In Q1, fundamentals deteriorated," Jefferies analysts led by Stephanie Dossmann said. "LFL rental income was down 0.2%, reflecting an increase in vacancy, while rental uplift was -4% on relettings."

Income from property management dropped 7.3% year-on-year to SEK 1,064 million, slightly below Visible Alpha consensus estimates by about 1%. This compares to a 10.2% increase recorded in FY-2024.

Vacancy metrics worsened, with the EPRA vacancy rate rising to 9.6% as of March 2025—up 80 basis points quarter-on-quarter and 100 basis points year-on-year. Economic occupancy declined 90 basis points over the quarter to 90.6%.

EPRA EPS came in at SEK 2.00, down 2% from the previous year. The value of the property portfolio declined slightly by 0.3% quarter-on-quarter, bringing the total to SEK 135 billion.

"The group still aims to be a net investor in 2025. However, while we think the worst is behind us, financial headroom remains tight," the analysts added. 

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