Wihlborgs Fastigheter AB (publ)

In Q2 2026, rental income was SEK 1,174 million, up 7% year over year, operating surplus was SEK 864 million, up 6%, and income from property management was SEK 556 million, up 6%; the quarter included positive value changes of SEK 10 million and profit for the period of SEK 301 million. For the first half, rental income rose 8% to SEK 2,324 million, operating surplus rose 8% to SEK 1,664 million, income from property management rose 9% to SEK 1,077 million, and result for the period was SEK 850 million, or SEK 2.76 per share. EPRA NRV increased 9% to SEK 99.66 per share, adjusted for paid dividend. Management did not give traditional next-quarter or full-year earnings guidance, but said net letting should be expected to be roughly flat in the short term and improve during 2027, occupancy is likely to improve during 2027, and the company expects 6% or a bit above 6% yield on cost for new-build offices and 7% or a bit above for industrial projects.

Ulrika Hallengren framed the Castellum acquisition as a strategic fit with Wihlborgs’ core markets and said the portfolio is concentrated in areas the company knows very well. She emphasized that the deal offers both immediate operating income and long-term development upside, with 15% vacancy creating room for future projects. Her tone was confident and patient: the company is willing to do the hard work over time and sees growth as best pursued in familiar markets.

Arvid Liepe focused on the financial strength of the quarter and the balance sheet. He cited Q2 rental income of SEK 1,174 million, operating surplus of SEK 864 million, income from property management of SEK 556 million, equity of SEK 24.2 billion, borrowings of SEK 35.7 billion, an equity ratio of 35.4%, leverage of 53.9%, interest cover of 2.9x, and net debt to EBITDA of 10.7x. He also noted average interest rate of 3.25%, average fixed interest period of 2.5 years, average loan maturity of 4.9 years, and a bit over SEK 4 billion of unutilized facilities, while saying the company has bridge financing for the full acquisition amount within an 18-month term.

Analysts focused mainly on the SEK 13.3 billion acquisition, asking about the initial 5% yield, the likely normalized vacancy rate, possible divestments to reduce LTV toward 55%, and dividend policy. Management said the acquisition yield is including administrative costs and is in line with its Swedish portfolio, that normalized vacancy for the acquired portfolio could be around 7%-8% in a better market, and that divestments are possible across different geographies and segments, with no decisions made yet. They also said the dividend decision will be made in February with the full-year report, considering cash flow, outlook, and year-end valuations.