Q1 2025 Catena AB Earnings Call Transcript
Key Points
- Catena AB (FRA:T9R) reported a 31% increase in rental income, reaching SEK644 million, driven by acquisitions and CPI-linked contracts.
- Profit from property management increased by 40%, with earnings per share from property management up by 18%.
- The company maintains a strong balance sheet with a loan-to-value (LTV) ratio of 37.8%, positioning it well for future growth.
- Catena AB's net leasing was strong in Q1, with a letting ratio of 96.5% and a weighted average lease expiry (WALE) of 6.5 years.
- The company is making significant progress in sustainability, with 53% of its area environmentally certified and a high level of EU taxonomy alignment.
- The market remains cautious with low transaction activity in the first quarter, and geopolitical uncertainties are affecting investment decisions.
- E-commerce figures declined in January and February, although there was a recovery in March.
- There is a regional oversupply issue, with large vacancies in certain areas, although Catena maintains a high occupancy rate.
- The company faces challenges in acquiring more zoned land, which could impact future growth opportunities.
- Catena AB's capital deployment was low during the quarter, with no major acquisitions and only a few divestments.
Hi and welcome everyone to Q1 presentation for the first quarter of 2025.
And here is the agenda for this conference call with as always a summary of the quarter, a business overview, and then following a business update going over to the sustainability and the financial updates and some takeaways from today before the Q&A session. So next slide please.
So here is the summary of Q1 2025. We have a stable progress and then what, so what cautious market, and we report 31% increase in rental income, ended up at SEK644 million driven by acquisitions, projects, and by our CPI-linked contracts.
Profit from property management increased by 40% in total and per share it was up to 18%. And now we can really see the full effect from the last year's acquisitions.
We report an increase in NRV per share up to SEK429 and the balance sheet remains very solid with an LTV at 37.8%. And we expect to generate strong cash flows in the coming quarters and with that said, in combination with our robust balance sheet, we are in a
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