Neobo Fastigheter AB (publ): Interim report January-September 2025

Summary by AI ^BETAClose X

For January-September 2025, rental income increased to SEK 702 million, with a 4.2 percent rise in the like-for-like portfolio. Net operating income grew to SEK 395 million, a 9.5 percent increase for the like-for-like portfolio. Profit from property management rose by 31.8 percent to SEK 161 million. The property portfolio was valued at SEK 13,873 million, with a property value change of SEK 14 million. Net profit for the period totaled SEK 61 million, and the net asset value amounted to SEK 45.78 per share. During the third quarter, two loan agreements totaling SEK 1,972 million were extended. The Board decided to repurchase own shares for a maximum of SEK 50 million.

Disclaimer*

JANUARY–SEPTEMBER 2025

Rental income increased to SEK 702 m (680). For the like-for-like portfolio, rental income increased by 4.2 percent.
Net operating income increased to SEK 395 m (363). For the like-for-like portfolio, net operating income increased by 9.5 percent due to higher rental income and lower property management costs.
Profit from property management increased by 31.8 percent to SEK 161 m (122) despite the absence of net operating income from seven properties that were divested during the preceding year.
The property portfolio’s value at the end of the period amounted to SEK 13,873 m (13,701) and change in value of the properties amounted to SEK 14 m (-238) for the period.
Net profit for the period totaled SEK 61 m (-211).
The net asset value amounted to SEK 45.78 per share (44.68).

JULY–SEPTEMBER 2025

Rental income increased to SEK 236 m (227) as a result of annual rent increases and rent increases for renovated apartments.
Net operating income increased to SEK 135 m (133), attributable to higher rental income, which was offset somewhat by increased property management costs during the quarter.
Profit from property management for the third quarter increased to SEK 59 m (55) as a result of higher net operating income and reduced central administration costs, despite the loss of net operating income from seven properties that were divested during the preceding year.

SIGNIFICANT EVENTS DURING AND AFTER THE THIRD QUARTER

In July, building rights on part of the Träkolet 16 property in Sollentuna were divested at a sale price of SEK 19.5 m. Closing will take place after the property subdivision gains legal force.
Two loan agreements totaling SEK 1,972 m were extended during the quarter. Both of the refinanced loans have significantly lower margins than the average margin for Neobo’s loan agreements.
In September, the largely vacant Rapphönan 16 commercial property in Karlskoga was divested and transferred at a sale price of SEK 9 m.
The management team was expanded with Head of Real Estate Andreas Wik, Head of Transactions Ali Ali, and Head of Treasury Daniel Bonn Rosén.
In October, the Gånsta 2:2 property in Enköping was divested and transferred at a sale price of SEK 130 m.
The Board of Directors of Neobo Fastigheter AB (publ) decided today to exercise its authorization from the Annual General Meeting on April 24, 2025 to repurchase own shares for a maximum amount of SEK 50 m.

CEO COMMENT
Profit from property management improved by 32 percent
Our operations are continuing to develop positively in all areas. Profit from property management improved by 32 percent to SEK 161 m (122) despite the divestment of seven properties in the preceding year.

At the same time, we have strengthened our management team with Head of Real Estate Andreas Wik, Head of Transactions Ali Ali and Head of Treasury Daniel Bonn Rosén – experts in value-generating property management, project development, transactions and financing – to continue developing Neobo and create value for our customers and shareholders.

Value-creating refinement
Since year-end, we have invested SEK 167 m (101) in value-creation measures that have increased our net operating income and refined our properties. This includes our renovation of 73 apartments, implementation of a tenant adaptation for the Swedish Prison and Probation Service, and investment in a number of sustainability measures that have brought us a step closer to achieving our long-term sustainability targets.

The increase in net operating income has led to positive unrealized value changes of SEK 14 m (-244) in the property portfolio, despite the average yield requirement used in the valuations having increased slightly during the quarter.

Lowest vacancy rate in our history
Our commercial vacancy rate decreased sharply by 4.1 percentage points during the quarter. This is attributable to the fact that the six-year rental contract with the Swedish Prison and Probation Service is now in effect, that an almost entirely vacant property in Karlskoga has been divested, and that we successfully leased some larger premises that had stood empty for some time.

Meanwhile, our residential vacancy rate increased slightly, which is attributable to factors such as a higher pace of renovation. We are continuing to work hard to increase the occupancy rate in our portfolio, and all together we are reporting the lowest total vacancy rate since we were founded. As of October 1, Neobo’s vacancy rate is 6.9 percent, compared to 8.0 percent when the company began.

Increased transaction pace
We continue to optimize our property portfolio, and since the summer we have divested two non-cash-flow-generating properties: a development right in Sollentuna and a largely vacant commercial property in Karlskoga as well as a residential property in Enköping. The later property was acquired by a tenant-owner association that our tenants had formed. All three of these transactions were concluded at sale prices that were in line with the most recent external valuations.

The total transaction volume in Sweden increased by 38 percent year-on-year. Combined with renewed activity in the market for converting rental apartments into owner-occupied units, this is creating exciting business opportunities for us.

Refinancing in an improved financing environment
The global situation continues to be marked by turbulence, and in September the Swedish Central Bank announced a cut of its policy rate to 1.75 percent as a response to the slowing pace of inflation and signs of flagging economic activity.

During the third quarter, we refinanced and extended bank loans for nearly SEK 2 billion at significantly lower margins than the average margins in our loan agreements. This is a sign of strength for Neobo and a clear indication that the financing market has continued to improve over the year.

Focus on shareholders
Our key mission is to create value for our shareholders, and today the Board of Neobo has therefore decided to utilize its authorization from the Annual General Meeting to repurchase shares. Under prevailing market conditions, and in combination with continued value-creating investments in the property portfolio, this is deemed to be favorable and help us to achieve the best possible total yield for our shareholders.

Stockholm, October 22, 2025

Ylva Sarby Westman, CEO