Release Date: July 11, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Logistea AB (FRA:1OL1, Financial) achieved its goal of reaching SEK15 billion worth of properties, now standing at SEK15.2 billion.
- Total rents exceeded SEK1 billion for the first time, indicating strong revenue growth.
- The company reported a significant increase in income by 131% to SEK511 million for the first half of 2025.
- Profit from property management increased by 267% to SEK246 million, with a per-share increase of 74% compared to last year.
- Logistea AB successfully decreased its net loan-to-value (LTV) ratio to 47% following a rights issue, improving financial stability.
Negative Points
- The net letting for the quarter was negative at SEK4 million, driven by two terminations.
- The rights issue had a negative effect, lowering the profit from property management per share by NOK0.08.
- The leasing market processes are slow, although there is no trend indicating a softer market compared to six months ago.
- The company faces challenges in securing bank financing for properties located outside the Nordics, which remain unleveraged.
- The transaction market outside Sweden remains slow, affecting potential growth opportunities in other Nordic markets.
Q & A Highlights
Q: Can you specify the new margins you get in different countries today?
A: The new margins on loans for transactions are around 150 to 170 basis points, evenly shared across all countries. - Philip Lofgren, CFO
Q: Is there an update on moving bond debt to bank debt for properties outside the Nordics?
A: We are working on securing bank financing for properties in Poland, Germany, and the Netherlands. Progress is being made, but nothing is signed yet. - Niklas Zuckerman, CEO
Q: If bank financing isn't secured, would you sell those properties or keep them unlevered?
A: We will continue to pursue bank financing for at least another quarter before deciding whether to keep or sell the properties based on the financing terms received. - Niklas Zuckerman, CEO
Q: Can you elaborate on the terminations and their impact?
A: Two terminations occurred this quarter, with one tenant leaving at the end of the year. There is no trend indicating a softer leasing market, and we are in good leasing discussions. - Niklas Zuckerman, CEO
Q: Is the project leg of the business a lower priority now given the active transaction market?
A: We hope to start one or two projects in the next 12 months. Projects need to yield in line with or better than existing property acquisitions. - Niklas Zuckerman, CEO
Q: How does a small yield shift explain a large property value change?
A: The yield compression is part of the value change, but the main factor is acquiring properties at higher yields than the portfolio average, impacting overall value. - Niklas Zuckerman, CEO
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
