This article first appeared on GuruFocus .
Release Date: February 10, 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 ( FRA:1EJ ) reported a 5% increase in rental income for Q4 2025, setting a new record at 1,111 million.
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Income from property management increased by 23%, with an 8% rise excluding joint venture revaluation.
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The company has maintained a positive net letting for 43 consecutive quarters, with a net letting of 12 million in Q4.
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Wihlborgs Fastigheter AB ( FRA:1EJ ) has a strong financial position with good access to financing and a proposed dividend of 3.3 krona per share.
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The company achieved a 10% increase in EPRA NRV to 99.36 krona per share, adjusted for paid dividends.
Negative Points
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Vacancy rates have increased slightly, impacting the overall occupancy rate, which is down by 0.3 percentage points compared to the previous year.
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The net debt to EBITDA ratio stands at 10.4 times, indicating a high level of leverage.
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The company faces challenges in the third-party logistics segment with quick changes in demand affecting occupancy rates.
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There is a higher vacancy in the Black Corner project, which is not pre-letting at the desired pace.
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The market remains cautious, with a slow start to the year and economic growth needed to support further improvements.
Q & A Highlights
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Warning! GuruFocus has detected 5 Warning Signs with FRA:1EJ.
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Q: Can you provide an outlook for the rental market in 2026 and expected vacancy rates? A: The year started slowly, but activity has picked up with positive rental income growth from signed leases expected in 2026. High-quality properties remain in demand, and we anticipate positive signals ahead, though economic growth would be beneficial. (Respondent: Unidentified_1)
Q: How will project completions in the first half of 2026 affect overall vacancy rates? A: Completed projects are included in the project volume, affecting figures, but rental income is expected to increase. Quick shifts in projects like SQUO 6 show our ability to adapt, with leases signed for 50% occupancy post-refurbishment. (Respondent: Unidentified_1)
Q: What is the investment outlook for 2026, given the current project portfolio? A: 2026 will not be a record year for investments, but we will maintain a good pace. We are exploring new opportunities, particularly in Lund and Malmo, with ongoing projects like the Malmo University building. (Respondent: Unidentified_1)
Q: Could you discuss the property evaluations and assumptions for 2027, particularly regarding CPI and valuation yields? A: For 2027, CPI assumptions are at 2%. We do not disclose exact valuation yields, but slight changes have been noted. Evaluations consider multiple parameters, and we trust our external appraisers' judgments. (Respondent: Unidentified_2)
Q: Are there any significant terminations expected, and how will they impact future quarters? A: The largest termination was Saab, effective January 1, 2026. Some terminations are expected in January 2027, but they are not as large as Saab's. We have time to find new solutions, especially in the industrial portfolio. (Respondent: Unidentified_1)
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
