This article first appeared on GuruFocus .
-
Portfolio Value:SEK241 billion.
-
Occupancy Rate:95%.
-
Net Debt:SEK50 million.
-
Liquidity:SEK23 billion.
-
NAV per Share:SEK94.3.
-
Rental Income Growth:Up 5%.
-
Profit from Property Management:Down 10%.
-
Like-for-Like Rental Growth:1.2%.
-
Net Debt to Total Assets:50.4%.
-
Interest Coverage Ratio (ICR):2.5.
-
Net Debt-to-EBITDA:12.8 million.
-
Average Interest Rate:2.9%.
-
Bond Issuance:SEK1.6 billion in the CP market.
-
Warning! GuruFocus has detected 8 Warning Signs with STU:28F0.
-
Is STU:28F0 fairly valued? Test your thesis with our free DCF calculator.
Release Date: July 14, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
-
Fastighets AB Balder ( STU:28F0 ) reported a 5% increase in rental income for Q2 2026.
-
The company has a strong liquidity position with SEK23 billion available.
-
Net asset value (NAV) per share increased to SEK94.3, reflecting a growth of SEK24 since the start of the business area.
-
The company has a stable credit rating of BBB with a stable outlook from S&P.
-
The portfolio is well-diversified, with 80% located in capitals and larger cities, providing stability in occupancy rates.
Negative Points
-
Profit from property management decreased by 10% compared to the previous year.
-
Funding costs have increased, albeit at a slower pace than portfolio growth.
-
Central administrative expenses have risen due to higher activity in new development and digitalization investments.
-
Occupancy rates have slightly decreased, primarily due to weakness in the office segment.
-
Net debt to total assets increased to 50.4%, partly due to the distribution of Norion and share buybacks.
Q & A Highlights
Q: Can you quantify the higher central costs and upfront investments mentioned in the CEO statement? Are these temporary? A: Some costs are one-off, while others relate to digitalization efforts expected to take 2-3 years. The quarterly numbers were slightly elevated due to a prerulization effect. The digitalization costs are estimated to be a few tens of millions of SEK annually for this year and next.
Q: You mentioned the commercial market is moving positively. Are there specific segments showing improvement? A: There is better movement in the office segment in Stockholm and Gothenburg. Interest is picking up, especially for smaller office spaces, although this hasn't yet translated into larger occupancy numbers.
Q: How did the transactions closed during the quarter contribute to the results? A: The transaction volume in Q2 was smaller compared to Q1, and the impact on the quarterly results was not as significant.
Q: How do you plan to balance capital allocation between share buybacks and deleveraging? A: We track several credit metrics and have room to maneuver. While improving credit metrics is important, we can be opportunistic with investments. Share buybacks are more attractive with the current share price, and we will allocate capital where returns are greatest.
Q: Are there plans for refinancing the EUR1 billion bond maturing in January next year? A: The funding activities are already prefunded, and the mix between SEK and euro funding is not expected to change significantly. We are regular issuers in the Eurobond market and expect to maintain this approach.
Q: With the current interest rate environment, are there any changes to your hedging strategy? A: Our hedging policy is designed to maintain stable cash flow regardless of interest rate market changes. Despite recent volatility, there has been no significant change in short-term rates, and our hedging strategy remains effective.
Q: Are there any plans to sell properties or use debt for buybacks, similar to Castellum's strategy? A: We do not have an active asset disposal plan, but we are open to discussions if there is interest in our properties. We remain rational in capital allocation but have no current plans to sell properties.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
