Sweden's Sagax Q3 rental revenue slightly beats estimates, profit forecast raised
Overview
Sweden commercial property investor's Q3 rental revenue up 6%, slightly beat analyst expectations
Profit from property management for Q3 rose 22% yr/yr
Company raised 2026 profit from property management forecast
Outlook
Sagax raises 2026 profit from property management forecast to SEK 4,800 mln from SEK 4,600 mln
Result Drivers
PROPERTY ACQUISITIONS - Co said net investments in properties, mainly acquisitions, increased to SEK 2,526 mln in Q3 (SEK 1,488 mln yr/yr)
REVALUATION GAINS - Property revaluation and revaluation of financial instruments had positive impact on profit in Q3
ASSOCIATE RECLASSIFICATION - Reclassification of Retail Estates NV stake resulted in SEK 683 mln profit in Q3
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Slight Beat* | SEK 1.45 bln | SEK 1.44 bln (3 Analysts) |
Q3 Net Income | SEK 2.28 bln | ||
Q3 Adjusted Free Cash Flow | SEK 1.02 bln | ||
Q3 Investments | SEK 2.53 bln | ||
Q3 Profit From Property Management | SEK 1.43 bln |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the real estate rental, development & operations peer group is "buy"
Wall Street's median 12-month price target for Sagax AB is SEK201.50, about 21.9% above its October 21 closing price of SEK165.30
The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 13 three months ago
Reuters Recommended Reads
Oct 21 - Sweden's Neobo Q3 profit from property management rises on lower costs
Oct 21 - Sweden's Wihlborgs 9-month rental income rises on new leases, projects and renegotiation
Oct 22 - Sweden's Castellum nine-month income falls on divestments
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)