Fastighetsbolaget Emilshus AB (publ) (STO: EMIL B) Q2 2025 Earnings | 07/11/2025

Fastighetsbolaget Emilshus AB (publ) (Emilshus) presented its Q2 2025 earnings, showcasing high activity across acquisitions, administration, and financing, leading to significant growth and improved profitability.

Key Highlights:

• Strong Financial Performance:

  • Administrative result per share increased by 26% for the first six months of 2025, and 23% over the last twelve months, exceeding the company's annual target of 15%.

  • Administrative result for January-June was up 40%, reaching SEK 190 million.

  • Cash flow from operating activities (before changes in working capital) increased by 47% to SEK 177 million.

  • Q2 2025 saw rent income up 31% to SEK 213 million, net profit up 30% to SEK 171 million, and administrative result up 38% to SEK 98 million. Administrative result per share for Q2 increased by 20%.

  • The forecast for administrative result in 2025 has been adjusted upwards from SEK 390 million to SEK 400 million.

• Acquisition-Driven Growth:

  • Completed 14 transactions in the first six months, totaling SEK 2.6 billion, demonstrating a high level of acquisition activity.

  • The property value as of June 30, 2025, increased by 18% since the start of the year, reaching SEK 10.5 billion. Including pending acquisitions, the value is almost SEK 12 billion (up 34% since year-end).

  • Strategic focus on expanding in Skåne, Halland, and Östergötland, with significant acquisitions in Skåne, including a large portfolio from Acrinova, set to be fully integrated in Q3.

  • Emphasis on light industry properties, ranging from SEK 20 million to SEK 1.4 billion in transaction size.

• Stable Operations:

  • Occupancy rate remains stable at 95%, maintained through active renegotiations despite a cautious and somewhat volatile market for commercial premises.

  • Average remaining lease term (upvålten) increased to 5.4 years, enhancing stability.

  • Net letting for the first six months was flat (plus/minus zero).

  • Project development is progressing well, with increased volume. Successfully leased out a renovated office building in Växjö with a long-term contract, demonstrating the ability to rent out offices effectively.

• Financing Activities:

  • Raised SEK 267 million through preference share emissions and SEK 546 million through common stock emissions, attracting both existing and new Swedish and foreign institutional investors.

  • Secured approximately SEK 400 million in new bank loans, benefiting from the company's increased size and resulting in better loan conditions.

  • Interest coverage ratio was 2.5x for the last 12 months, and the debt ratio was 48% (down from 55% in the previous quarter), partly due to high cash levels from recent emissions.

  • The company is actively managing its financing, aiming to improve credit margins and handle debt maturities proactively.

• Sustainability Efforts:

  • Primary focus on energy efficiency, particularly in electricity and ventilation, showing good results.

  • Acquiring older properties with potential for energy efficiency improvements provides significant benefits for both tenants and the company.

• Organizational Readiness: Emilshus is building up its administrative unit in Malmö, hiring a new property manager, and engaging in regular meetings with Acrinova to ensure a smooth integration of the acquired portfolio.

• Outlook: The company maintains a strong acquisition pipeline and intends to remain offensive, but will stick to its business idea of acquiring high-yielding properties and will not compromise on return requirements despite increasing market competition. The focus remains on building a stable and profitable company by prioritizing tenant care, managing existing portfolios, and making strategic acquisitions in target markets.