Castellum Reports 3% Q1 NOI Decline, SEK100M Cost Cuts and SEK750M Asset Profit
Castellum's Q1 net operating income fell 3% year-on-year due to higher vacancies and direct property costs, while administrative expenses were cut by SEK100 million. The company realized SEK750 million profit from nine property disposals and has acquired SEK2.7 billion in share buybacks.
1. Q1 Financial Performance
Castellum recorded a 3% decrease in both income and net operating income compared to Q1 last year, driven by higher vacancy rates across its portfolio and increased direct property costs.
2. Cost Reductions and Asset Disposals
Administrative expenses were reduced by SEK100 million year-on-year, and the sale of nine properties to AP7 generated a SEK750 million profit, bolstering cash flow.
3. Share Buyback Progress
The ongoing share repurchase program has acquired SEK2.7 billion worth of stock so far, with no further property divestments planned to complete the program.
4. Hedging and Reporting Adjustments
Electricity price exposure is hedged on a staggered basis covering 80%, 60%, 40% and 20% over multiple years, and occupancy reporting now reflects end-of-period figures for greater accuracy.