This article first appeared on GuruFocus .
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Portfolio Value:229 billion SEK, with 54% residential and 46% commercial.
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Occupancy Rate:95%.
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Liquidity:24 billion SEK.
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Debt to Assets Ratio:48.1%.
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Net Asset Value (NAV):94 SEK per share.
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Rental Income and NOI Growth:Up 4% in Q4.
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Profit from Property Management:Decreased by 7% due to proposed Norion share distribution.
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Dividend:Approximately 525 SEK per Balder share, with NAV decreasing by 4 SEK per share.
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Like-for-Like Rental Growth:2.7% positive growth.
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Loan-to-Value (LTV) Ratio:48.1%.
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Interest Rate:Average interest rate stable at 2.9%.
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Net Debt to Total Assets:Decreasing trend, currently at 23.4%.
Release Date: February 06, 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 ) reported a high occupancy rate of 95%, indicating strong demand for their properties.
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The company has a robust liquidity position with 24 billion SEK available, providing financial flexibility.
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Rental income and net operating income (NOI) increased by 4% in Q4, showcasing growth in core operations.
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The portfolio is well-diversified with a 54% residential and 46% commercial split, reducing risk exposure.
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The company has maintained a stable interest rate of 2.9%, which helps manage financing costs effectively.
Negative Points
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Profit from property management decreased by 7%, primarily due to the proposed distribution of Norion shares as a dividend.
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Net asset value (NAV) per share decreased by 4 SEK, reflecting the impact of the Norion distribution.
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The debt-to-assets ratio is relatively high at 48.1%, which could pose risks if market conditions worsen.
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The Finnish residential market faces challenges with oversupply, impacting occupancy and rent levels.
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The company's net debt to EBITDA ratio is at 12x, above their long-term target of 11x, indicating high leverage.
Q & A Highlights
Q: Will there be any value adjustment before distributing Norion shares, and are the distribution figures based on year-end or current valuations? A: Jonas Erikson, Investor Relations and Corporate Development contact, explained that there won't be any value change before the distribution. The distribution is based on year-end figures, and the NAV will be adjusted accordingly without any value increase or realization gain booked through the P&L.
Q: Why is Fastighets AB Balder considering issuing new shares, and is it related to Norion distribution or hybrid instruments? A: Erik Selin, CEO, clarified that the issuance is not needed for Norion or hybrid instruments. It is intended to provide optionality for the future and is a practical measure to be added during the AGM.
Q: What is the reasoning behind maintaining a high liquidity level, and is it for potential large transactions or upcoming maturities? A: Jonas Erikson stated that the high liquidity is primarily due to significant maturities in Q1 2027, including two EUR benchmark bonds. The company maintains higher liquidity to manage these maturities and optimize funding opportunities.
Q: How has the rental agreement reset in Sweden developed, and what is the expected range? A: Jonas Erikson mentioned that most agreements are finalized, landing at slightly below 3.5%, around 3.2% to 3.3%.
Q: What is the impact of the housing allowance changes and stricter residency rules in Finland on the rental market? A: Erik Selin noted that while it's difficult to quantify the exact impact, these changes likely affect demand, particularly for smaller apartments. The company remains optimistic about medium-term prospects due to strong urban housing demand.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
