Wihlborgs posts record H1 profit on acquisition, property income growth

Investing.com -- Wihlborgs Fastigheter AB (ST:WIHL) on Monday reported a record net profit for the first half of 2025, driven by its largest acquisition to date and higher income from property management.

Net profit rose to SEK 883 million, up from SEK 698 million in the same period last year. Income from property management increased 12% to SEK 987 million, while rental income grew 3% to SEK 2,142 million. 

The operating surplus rose 4% to SEK 1,544 million, maintaining a surplus ratio of 72%. In April, Wihlborgs acquired properties in Lund, Malmö and Helsingborg for SEK 2,425 million, adding 51,000 square meters of lettable area and 82,000 square meters of developable land. 

The deal contributed to an increase in the total property portfolio value to SEK 62.7 billion from SEK 59.2 billion at the start of the year.

The portfolio comprised 316 properties with a total lettable area of 2.375 million square meters. 

The economic occupancy rate for investment properties stood at 90%, with office and retail space in Copenhagen at 91% and logistics properties in Helsingborg at 83%.

The property company signed new leases worth SEK 234 million and reported terminations of SEK 175 million, resulting in net lettings of SEK 59 million.

A key agreement included a 24,000 square meter lease with Per Aarsleff A/S in Glostrup, west of Copenhagen.

Like-for-like rental value rose 2.1%, while contracted rental income decreased 0.5%. Currency effects reduced rental income by SEK 14 million. 

Property costs increased to SEK 598 million, compared with SEK 590 million a year earlier. Central administration expenses fell to SEK 42 million from SEK 45 million. Rental losses increased to SEK 6 million from zero.

Net interest expense declined to SEK 524 million from SEK 557 million. The average interest rate, including credit costs, was 3.3%, down from 3.45%.

The interest coverage ratio was 2.8. The loan-to-value ratio rose to 53.0%, from 50.9% at year-end, and the equity/assets ratio was 35.8%.

Property value changes amounted to SEK 312 million, while the value of derivatives fell to SEK 122 million, compared with a positive SEK 74 million a year earlier.

The company invested SEK 1,265 million in its portfolio. Of the SEK 5.4 billion approved project pipeline, SEK 2.3 billion had been spent. Ongoing projects include Galoppen 1, Kranen 4, Sunnanå 12:54 and Börshuset 1.

Cash flow from operations totaled SEK 1,009 million, up from SEK 679 million a year earlier.

Second-quarter cash flow was SEK 501 million, with SEK 232 million in liquid assets at period-end.