Castellum Ab Stock Earnings Reports

Key points for investors: Castellum executed large portfolio divestments in H1 2026 (signed deals ~SEK 24bn) including sales to Wihlborgs (Skåne portfolio) and Alecta (Stockholm offices). Management frames these sales as value-accretive given achieved prices versus return targets. Share buybacks continue: SEK 4.6bn repurchased YTD (39m shares) and the board approved a new buyback program of up to SEK 3bn (part of proceeds from the Alecta transaction). Leasing: reported positive net leasing of SEK 110m for the first six months, largely driven by Ericsson leasing Infinity and some additional Ericsson leases; underlying net leasing excluding project effects remains negative and vacancy/occupancy pressure persists (occupancy ~87.5%). Like-for-like in-place rent and NOI declined (in-place rents -1.3% y/y; NOI -4.8%) due to higher vacancy and somewhat higher operating costs. Balance sheet/financing: investment properties ~SEK 134bn (excluding not-yet-closed deals ~SEK 116bn), LTV 37.3% with policy <40%, interest-bearing liabilities SEK 57.3bn, average interest ~3.5% (up from 3.1%); ICR ~3.2x (policy >=3x). Management terminated S&P rating arguing one rating is sufficient. They expect to allocate part of divestment proceeds to debt reduction (policy ~40% to debt noted) but will consider all distribution options (dividends, buybacks etc.) when proceeds are received. Hybrids: management is assessing upcoming reset/call dates and sees disposals used mainly for traditional debt rather than hybrids at present. Financial targets: ROE annualized H1 equals ~5.2% (well below the >10% target), NAV per share (EPRA NRV) up ~4.6% since year-end (profit + share buybacks).