Q2 2025 Neobo Fastigheter AB (publ) Earnings Call Transcript
Key Points
- Profit from property management increased by 50% in the first six months of the year.
- Rental income in the like-for-like portfolio increased by 4%, and net operating income improved by 12%.
- Positive unrealized value changes in the property portfolio of SEK11 million due to stabilized yield requirements and increased net operating income.
- Rent negotiations for 2025 completed with an average increase of 4.8% in the residential part of the portfolio.
- Total property management costs decreased by SEK18 million year-on-year due to cost-saving measures and a milder winter.
- Residential vacancies increased by 27 apartments during the quarter.
- The lease agreement with the Swedish Prison and Probation Service will only enter force on September 1, affecting current vacancy rates.
- The transaction market, although improving, still shows signs of instability.
- The average fixed rate period increased from 2.3 to 2.7 years, indicating potential future interest rate risks.
- The ICR, while improved, still reflects a need for cautious financial management.
Welcome to Neobo Q2 report 2025. (Operator Instructions)
Now I will hand the conference over to CEO, Ylva Sarby Westman. Please go ahead.
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Thank you. And good morning, everyone, and welcome to the presentation of Neobo's interim report, January to June 2025. My name is Ylva Sarby Westman, and I'm joined here today by our CFO, Maria Strandberg. Despite the turbulent global environment, we have remained focused on our core business, creating attractive, sustainable living environments where people can thrive and feel secure.
And it's rewarding to see our efforts paying off and that we are on the right track. Profit from property management increased by 50% in the first six months of the year, despite seven properties being divested last year. Rental income in the like-for-like portfolio increased by 4%, and net operating income improved by 12% in the like-for-like portfolio as a result of both higher rental income and lower property management
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