Wihlborgs Fastigheter AB (publ) (STO: WIHL) Q2 2025 Earnings | 07/07/2025

Wihlborgs Fastigheter AB (publ) reported strong Q2 2025 results, marking its 20th anniversary as a listed company with significant growth and record-breaking financial figures.

20-Year Anniversary Achievements (2005-2025):

• Property Value Growth: Increased from SEK 7 billion to SEK 63 billion without new equity issuance.

• Investments: Invested SEK 20 billion in projects, yielding SEK 5 billion in profit.

• Acquisitions: Made acquisitions valued at SEK 14 billion.

• Dividend: 19 consecutive years of increased dividend, with a 10.4% compound annual growth rate (CAGR), paying out SEK 9 billion in total dividends.

• Financial Performance: Rental income, operating surplus, and income from property management all achieved a CAGR of almost 10%.

• Total Shareholder Return: 1,735% (15.6% annually) with reinvested dividends, outperforming the Stockholm stock market.

Q2 2025 Financial Highlights:

• Record Figures: Achieved record rental income, operating surplus, income from property management, acquisitions, dividend, and property value.

• Rental Income: SEK 1.097 billion (up 6% year-over-year).

• Operating Surplus: SEK 813 million (up 6% year-over-year).

• Income from Property Management: Increased by 14% to SEK 524 million.

• Net Letting: Positive SEK 24 million for the quarter (SEK 29 million for the period), marking 41 consecutive quarters of positive net letting.

• Property Value: SEK 62.7 billion (up SEK 5.6 billion from 12 months prior).

• EPRA NRV per Share: SEK 94.35 (up 10% year-over-year, adjusted for dividend).

• Equity Assets Ratio: 35.8%.

• Leverage (LTV): 53% (slightly up, but expected to gradually decrease).

• Interest Cover Ratio (ICR): 2.9 times for Q2 (2.8 for H1), showing positive development.

• Average Interest Rate: 3.29%.

• Fixed Interest Period: 2.4 years.

Operational Highlights:

• Net Letting: SEK 235 million in new leases signed during the period, primarily from the existing portfolio.

• Occupancy Rate: 90% for the whole portfolio (excluding projects and land); 91% for offices (92% in Malmö, 89% in Helsingborg, 90% in Lund, 92% in Copenhagen). Logistics/production at 88%.

• Like-for-Like Rental Value: Up 2.1%, driven by indexation (1.6% in Sweden, ~1% in Denmark). Rental income slightly down by 0.5% due to higher vacancy and timing effects.

• Running Yield: 5.6% for the overall portfolio (6.4% fully let), indicating strong earnings capacity.

• Acquisitions: Added eight properties in Malmö, Lund, and Helsingborg (51,000 sqm lettable area, 82,000 sqm industrial land, 12,000 sqm office building rights) with an estimated initial operating surplus of SEK 130 million/year.

ESG Initiatives:

• Continued property certifications in Sweden and initiated in Denmark.

• Energy Consumption: Continues to decrease, with a new target of max 75 kWh/sqm by 2030.

• Recognized by the Financial Times as one of Europe's climate leaders.

• Renewed climate contract with the municipality of Malmö.

• Reduced energy consumption at Värdshuset 2 by 22% with minimal investment.

Project & Investment Update:

• Invested SEK 1.265 billion in projects during the period, with SEK 3.132 billion remaining for approved projects.

• Key projects include:

  • AB Industrivet (Copenhagen): 24,000 sqm, single-tenant building (Per Årslöf), completion Q1 2026.

  • Amphitrite (Malmö): Over 20,000 sqm for Malmö University, selective deconstruction for reuse, building permission expected September.

  • Post-torn (Lund): 10,100 sqm new office beside central station, completion Q2 2026.

  • Vätet 1 (Lund): 5,700 sqm refurbishment/addition for ARM, completion Q2 2026.

  • Hylje (Malmö): 884 million investment, mobility hub completed, office pre-let 35% (increasing), completion end 2025/2026.

  • Bushhuset 1 (Malmö): Iconic building refurbishment, 95% pre-let, completion Q4 2025.

  • Dokkan area (Malmö): Refurbishments for Malmö University and police education completed July 1.

  • Maten & Stora Robi (Lund): New leases with Lund University, improving land use, completion Q2 2026.

  • Galoppen 1 (Malmö): Facility for Caldit, completion Q3 2025.

  • Sundano: 17,000 sqm, 100% pre-let, 15-year lease, completion Q4 2025.

  • Harsland (Copenhagen): School for NGG, 25-year lease, completion Q1 2026.

  • Jidoströget (Højutostup): Large refurbishment for Novo, completion Q1 2026 (Novo pays rent during refurbishment).

Öresund Region Development:

• The Öresund Bridge celebrated 25 years, a central element to Wihlborgs' growth.

• Danish government investing heavily in infrastructure (e.g., Ferman Belt link to Germany, opening 2029).

• Swedish government appointed a Special Investigator for a joint Swedish-Danish study on Öresund capacity (report due November).

• Cross-border integration reached record levels in 2024 (index 234 from 100 in 2001), with over 19,000 daily commuters and record train/car passenger numbers, supporting long-term regional growth.