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Investing.com -- Shares in Swedish property firm Castellum (ST:CAST) fell over 2% Tuesday after J.P. Morgan lowered its earnings forecasts and flagged continued operational pressure across the company’s office portfolio.
The brokerage reiterated its “underweight” rating, citing weak first-quarter results and deteriorating occupancy trends. It placed Castellum on Negative Catalyst Watch ahead of second-quarter earnings due July 15.
J.P. Morgan cut its earnings per share estimates by 4% for 2025 and 5% for 2026, reflecting lower income and weaker like-for-like value growth.
The brokerage’s projections are now 3% and 1% below Bloomberg consensus for 2025 and 2026, respectively.
In the first quarter, Castellum reported a 0.2% decline in like-for-like revenue. The office segment was hit by cancellations and bankruptcies, with occupancy dropping to 88.1% from 90%.
Analysts said they expect further declines in occupancy through the rest of the year as market conditions remain strained.
They pointed to a slow leasing environment and macroeconomic uncertainty affecting tenant decisions.
The brokerage also cited governance concerns after Akelius, Castellum’s largest shareholder with a 13.5% stake, publicly criticized the company’s management.
J.P. Morgan said this development could weigh further on investor sentiment. The price target was lowered to SEK 110 from SEK 118.