Q2 2025 Fastighets AB Balder Earnings Call Transcript
Key Points
- Fastighets AB Balder (BALDF) reported a 7% increase in rental income and a 9% increase in net operating income (NOI) for Q2 2025 compared to the previous year.
- The company's earnings capacity improved by 10% per share compared to the previous year, indicating a positive trend in financial performance.
- Occupancy rates remain high at 95%, showcasing strong demand for their properties.
- The company's diversified portfolio across Nordic cities and various property types provides stability and reduces risk exposure.
- Fastighets AB Balder (BALDF) has a stable financing structure with 53% of its financing in bank loans and a consistent interest rate hedging strategy.
- The Finnish market is experiencing an oversupply, which could impact future rental growth and occupancy rates.
- Higher financing costs have led to a flattish development in earnings over the past few years, despite underlying income growth.
- The company's leverage is slightly under 50%, which could limit its ability to make significant new acquisitions without increasing debt levels.
- The commercial leasing market is competitive, particularly for high-priced offices, which may affect future leasing activity and rental rates.
- The transaction market is more active, but larger transactions face more competition, potentially impacting acquisition opportunities.
Welcome to the Balder Q2 report 2025 for the first part of conference call. (Operator Instructions) Now, I will hand the conference over to Jonas Erikson. Please go ahead.
Good morning, everyone. Welcome to Balder's conference call for the second quarter 2025. Today will be Erik Selin, CEO, presenting; and myself, Jonas Erikson, Head of Investor Relations.
And I'll hand the word to Erik to show us a few slides, and then we will open up for questions.
Thank you, Jonas. Balder at a glance, we are a Nordic property company to SEK226 billion of portfolio value, BBB flat rating. We have 95% occupancy. And NAV per share right now is at SEK91.2. And that is an interesting figure. And from the beginning, 20 years ago, we have managed to compound at an annual rate of 25%. The portfolio is a bit over 50% resi and slightly below 50% commercial and the commercial is very diversified. Looking at the Q2
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