Stable profit growth indicated by first reports

Four of the most prominent listed property companies in Sweden have released their income statements for the third quarter this week and as expected all companies increase their income from property management. Below is a summary.

Castellum reported an income from property management amounting to 799 million SEK and a profit before tax of 3,3 billion SEK which is more than triple the income for the same quarter last year. The company’s aggregated property value amounts to 87,5 billion SEK.

“My assessment is that demand pressure on efficient premises will probably last for another few years. An indication of this is that market has built new offices at a yearly rate of 1–1.5% over the last five years while demand has increased — and continues to increase — by 3–3.5% per year. To ensure growth potential moving forward, Castellum has expanded its sphere of operations to growth cities in the entire Nordic region. We have been in Copenhagen for a long time, we are now in Helsinki as well,” Castellum CEO Henrik Saxborn comments.

Fabege has also enjoyed yet another profitable quarter with an property management profit of 323 million SEK, an increase of 22 per cent.

The company has recently signed an agreement for the development of a new urban area in Flemingsberg, south of Stockholm.

Klövern reported a profit from property management of 367 million SEK in the third quarter, up nine percent from the third quarter of last year.

Klövern has initiated an international expansion this year through acquisitions in Copenhagen and New York with the long-term aim of diversifying its portfolio. It has sold parts of its Swedish assets in recent years with the last transaction taking place at the end of August this year.

“The extensive streamlining of the Swedish portfolio has now been completed, opening up potential for new transactions,” Klövern’s CEO Rutger Arnhult said in the earnings statement.

Atrium Ljungberg’s operating surplus from property management increase one percent to 1,254 million crowns.

It keeps its forecast of a 1.2 billion profit before changes in value this year unchanged.

Atrium’s CEO Annika Ånäs believes interest rates will remain at a low level for a relatively long period of time.

“It would be difficult to raise them in Sweden right now since we are entering a period of lower growth,” she said in the earnings statement.

The Swedish Riksbank has said it will raise its repo rate from the record low level of -0.5 percent in December or February.

Oskar von Bahr
Sverrir Thór