This article first appeared on GuruFocus .
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Rental Income:SEK1.150 billion, up 10% year-over-year.
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Operating Surplus:SEK800 million, up 9% year-over-year.
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Income from Property Management:SEK520 million, up 12% year-over-year.
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Net Debt to EBITDA:10.5 times.
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EPRA NAV:SEK101.14 per share, up 10% adjusted for paid dividend.
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Investment Properties Value:SEK65.642 billion, up from SEK64.440 billion.
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Equity Assets Ratio:36.8%.
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Loan-to-Value (LTV):52.1%.
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Interest Cover Ratio:2.9 times.
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Running Yield:5.5% for the whole portfolio.
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Occupancy Rate:90% excluding projects and land.
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New Leases:SEK49 million; Terminations: SEK84 million.
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Investment in Projects:SEK562 million during Q1.
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Release Date: April 21, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Wihlborgs Fastigheter AB ( LTS:0A0I ) achieved a record rental income of SEK1.150 billion, marking the fourth consecutive quarter of record rental income.
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The company's operating surplus increased by 9% to SEK800 million, despite higher costs for snow removal and heating.
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Income from property management rose by 12% to SEK520 million compared to the same quarter in the previous year.
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The EPRA NAV increased by 10% to SEK101.14 per share, adjusted for paid dividends.
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Wihlborgs Fastigheter AB ( LTS:0A0I ) has good access to financing, with ongoing positive discussions with banking relationships and a stable Danish real mortgage system.
Negative Points
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Net debt to EBITDA stands at a high 10.5 times, indicating significant leverage.
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The company experienced a negative net letting of minus SEK35 million, the first negative quarter after four consecutive positive quarters.
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Over 50% of lease terminations occurred in Denmark, and the volume of new leases in Q1 was too low to offset these terminations.
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The occupancy rate is relatively flat, with no significant improvement expected in the short term due to ongoing terminations and project completions.
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Tenant bankruptcies in Sweden affected the results negatively, contributing to a decrease in net letting figures.
Q & A Highlights
Q: Regarding the EU income in Q1 in Denmark, how large was the annual rental income in that contract? And did it already impact the occupancy rate in Q1? A: The contract relates to Slotsmilen Survey, where ATP left the building, making it currently vacant. The SEK 15 million relates to a termination fee negotiated in this quarter, not the annual rental income. The impact on occupancy will be seen in Q2. - Arvid Liepe, Deputy CEO & CFO
Q: Should we expect a 1 percentage point increase in occupancy rates during the remainder of the year, given that 14% of the vacancy is already pre-leased? A: It's too early to expect that increase due to ongoing terminations. We anticipate occupancy to remain flat until Q2, with rental income continuing to rise. - Ulrika Hallengren, CEO
Q: How much interest do you capitalize related to projects, and should we expect an increase in coming quarters? A: SEK9 million was capitalized in Q1. Given the high project volume in 2025, we don't expect this number to increase significantly in 2026. - Arvid Liepe, Deputy CEO & CFO
Q: Regarding the swap contract of SEK1.25 billion with low interest rates maturing this year, will it have a gradual effect? A: The effect will be spread out over Q2, Q3, and Q4, rather than being concentrated in one quarter. - Arvid Liepe, Deputy CEO & CFO
Q: Have you seen any changes in bank margins during the recent geopolitical uncertainties? A: We haven't had any refinancings or new financings recently, but my impression is that bank margins have remained stable over the past couple of months. - Arvid Liepe, Deputy CEO & CFO
Q: Can you provide details on the termination volumes and any significant contracts involved? A: We had two leases with Posthornet, one in Sweden and one in Denmark, totaling SEK6-7 million. Ahlsell in Malmo also terminated a lease worth SEK7 million. There were also smaller leases affected by tenant bankruptcies. - Ulrika Hallengren, CEO
Q: Have any lease discussions been terminated due to geopolitical events in the Middle East? A: No discussions have been terminated. In fact, the list of ongoing discussions has increased significantly since February and March. - Ulrika Hallengren, CEO
Q: On the EPRA CapEx table, tenant incentives have increased significantly. Is this the expected run rate for 2026? A: Predicting the split of CapEx into different categories is challenging. Tenant incentives will continue to be an important part of our CapEx, but the magnitude is difficult to predict. - Arvid Liepe, Deputy CEO & CFO
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
