In This Article:
-
Income from Property Management Growth: 10% increase for the quarter.
-
Like-for-Like Rental Growth: 0.7% supported by indexation and rent reversion.
-
Economic Occupancy Rate: 90%, down from 92% last year.
-
Operating Surplus: Up 5% to SEK427 million.
-
Income from Property Management: Increased by 10% to SEK221 million.
-
Net Letting: Positive in 23 of the last 25 quarters, including SEK1 million in the last quarter.
-
Market Value of Properties: SEK31.6 billion.
-
Investment in Projects: SEK202 million during the quarter.
-
Average Yield: 6.13%, one basis point lower than last quarter.
-
Interest Rate: 4.2%, 10 basis points lower compared to last quarter.
-
Acquisition in UMO: SEK1.6 billion, with completion expected in June.
-
Vacancy Rate: Expected to improve in the second half of 2025.
-
Tenant Concentration Risk: 10 largest tenants account for 20% of total rental income.
-
Loan Maturities: SEK2.3 billion in the next 12 months, excluding commercial paper.
-
Unused Credit Facilities: SEK2 billion.
-
Loan to Value Ratio: 41%.
-
Yield on Cost for Investments: 9%.
Release Date: April 29, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Dios Fastigheter AB (FRA:D1F) reported a 10% growth in income from property management for the first quarter.
-
The company has a strong cash flow with a secured loan to value ratio of 41% and SEK2 billion in unused credit facilities.
-
Net letting has been positive in 23 of the last 25 quarters, indicating strong demand for their properties.
-
The acquisition of properties in UMO for SEK1.6 billion aligns with their growth strategy and is expected to increase management result per share by approximately 4%.
-
The company has a well-diversified portfolio with 33% of rental income derived from public sector tenants, providing a stable foundation.
Negative Points
-
The economic occupancy rate decreased to 90% from 92% last year due to divestment and new construction.
-
There is an increase in vacancies due to asset rotation and completion of new developments, temporarily raising vacancy rates.
-
The bond market has been more volatile recently, with rising margins impacting financing costs.
-
High CPI and subsequent rent adjustments have impacted tenants' profitability.
-
The average lease maturity for newly acquired properties is relatively short at 2.3 years, which may pose a risk if not extended.
Q & A Highlights
Q: Can you clarify your strategy on divesting non-core assets? Are there specific geographies or types of properties you are focusing on? A: We plan to be net sellers in the near term to create room for growth. We are primarily selling non-core assets across our cities, such as warehouses, light industries, and non-prime office locations. It's not specific to any city but rather across our portfolio. - David Carlsson, CEO