Sveafastigheter Q4: Solid operating income, mixed valuation signals as yields drift higher

Sveafastigheter delivered Q4 results largely in line with analyst expectations. Income from property management rose to SEK96 million, outpacing broker estimates, and net reinvestment value per share matched forecasts at SEK80.4. Cost of debt eased modestly and leverage remained comfortably below policy limits, but property revaluations were negative, exit yields rose and occupancy dipped slightly. Management reports progress on 2026 rent negotiations and did not declare a dividend. Kepler Cheuvreux holds its rating with a SEK41 target price.

Key Points

Income from property management rose to SEK96 million - 3% above Kepler Cheuvreux’s estimate and 5% above consensus, a 52% year-on-year gain.
Net reinvestment value per share was SEK80.4, matching analyst expectations; cost of debt improved to 3.28% and loan-to-value stayed at 42%, under the 50% policy cap.
Property revaluations were negative (-0.5%), exit yields rose to 4.52%, and occupancy declined to 95.3%; two-thirds of 2026 rent renegotiations are complete with a 3.4% average uplift.

Overview

Sveafastigheter reported fourth-quarter results that were broadly consistent with analyst forecasts, showing strength in recurring property-management income but some softness in portfolio valuations. The company recorded income from property management of SEK96 million, which was 3% ahead of Kepler Cheuvreux’s projection and 5% above consensus estimates, and represented a 52% increase from the same quarter a year earlier.

Balance-sheet and financing metrics

Net reinvestment value per share was SEK80.4, in line with analyst expectations. Sveafastigheter’s reported cost of debt improved, falling by 7 basis points from the prior quarter to 3.28%. The loan-to-value ratio remained unchanged at 42%, comfortably under the company’s stated policy ceiling of 50%.

Valuations, yields and occupancy

Not all metrics moved in the company’s favour. The portfolio experienced a negative revaluation of 0.5% during the quarter, versus Kepler Cheuvreux’s model expectation of a 0.3% increase. Exit yields widened by 6 basis points quarter-over-quarter to 4.52%. Occupancy also edged lower, to 95.3%, a decrease of 40 basis points from the previous quarter.

Rent renegotiations and dividend policy

The company reported that two-thirds of its rent negotiations for 2026 have been finalised, producing an average rent uplift of 3.4%. Management expects that the broader portfolio will deliver similar increases as remaining negotiations conclude. As anticipated, Sveafastigheter did not pay a dividend for the period.

Broker response

Kepler Cheuvreux retained its Hold recommendation on Sveafastigheter and kept a target price of SEK41.00, which the broker states implies an 8.8% upside from Monday’s closing share price of SEK37.70.

Implications

The quarter showcased a mix of operational improvement in property-management income and financing costs, alongside pressure in asset valuations and leasing metrics. The company’s leverage position remains conservative relative to its policy limit, while management points to ongoing rent negotiations as a source of near-term revenue uplift.

Note: The figures and statements above reflect the company’s reported Q4 results and broker commentary as presented.

Risks

Negative property revaluation (-0.5% in the quarter) and rising exit yields (to 4.52%) could pressure asset valuations in the real estate sector.
Slight decline in occupancy (to 95.3%) introduces revenue risk for the residential property portfolio if the trend continues.
No dividend was declared for the period, which may affect income-focused investors and influence sentiment in equities tied to property yields.

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Key Points

Risks

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