This article first appeared on GuruFocus .
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Portfolio Value:237 billion Swedish kroner.
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Occupancy Rate:95%.
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Net Debt:49%.
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Liquidity:22 billion Swedish kroner.
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NAV per Share:96.6.
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Rental Income Growth:Up 1%.
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NOI Growth:Up 1%.
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Profit from Property Management:Down 12%, adjusted increase of 3% excluding Nubrion distribution.
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Like-for-Like Rental Growth:1.3%.
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Per Share Earnings Capacity:5.17.
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Share Buyback:6 million shares repurchased in Q1.
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Interest Rate:Average interest rate unchanged at 2.9%.
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Net Debt to Total Assets:Increased due to reclassification and currency movements.
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Encumbrance Level:23.9%.
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Refinanced Bank Loans:8 billion SEAC with maturities in 2026.
Release Date: May 08, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Fastighets AB Balder ( BALDF ) maintains a high occupancy rate of 95%, indicating strong demand for its properties.
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The company has a robust liquidity position with 22 billion SEK available, providing financial flexibility.
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Fastighets AB Balder ( BALDF ) has a strong credit rating from S&P, rated as triple D flat, which was recently confirmed.
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The company has a long-term growth compounding rate of 25% since inception, showcasing consistent growth over time.
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Fastighets AB Balder ( BALDF ) has been active in the bond market, taking advantage of favorable conditions to issue bonds in both Euro and SEK.
Negative Points
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Rental income growth was only 1% for the quarter, which is considered low by the company's standards.
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Profit from property management decreased by 12%, impacted by the distribution of Nubrion shares.
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Currency effects and a colder climate negatively impacted net operating income (NOI) and rental income.
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The company's net debt to total assets ratio increased during the quarter due to reclassification and currency movements.
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The office segment experienced some weakness in occupancy, contributing to a slightly lower overall occupancy rate.
Q & A Highlights
Q: Your net initial yield according to earnings capacity increased from 4.7% to almost 4.9% in Q1 compared to Q4. Is that due to high yield in acquisitions, or is it an improvement like-for-like? A: I haven't done that reconciliation, but we have done some acquisitions that are slightly enhancing. However, it shouldn't be a big difference considering our total portfolio size. There is also some like-for-like growth of 1.3%.
Q: Can you quantify the increased costs for heating and snow removal due to the cold first quarter? A: We haven't quantified it precisely, but our surplus ratio is slightly elevated. It's a few tens of million SEK, but it's difficult to provide a precise estimate.
Q: Do you have room for more acquisitions in 2026, given your recent property purchase in London? A: The acquisitions in Q1 came in late, impacting net debt but not earnings. We maintain a balanced capital allocation strategy, allowing room for investments and share buybacks. We view this from a long-term perspective.
Q: What made the London acquisition in the office segment attractive, and do you plan to scale the London portfolio further? A: The London acquisition has a lower initial yield but offers good long-term potential. We have three properties in Central London and will consider further opportunities if they arise, but we don't have a large-scale expansion plan in the UK.
Q: How do you view capital allocation between acquisitions and share repurchases given the current share price? A: We are interested in repurchasing shares at the current price, but we also consider long-term investments. Deals take time, and we can't always predict share price movements, so we balance both strategies.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
