Sweden's Balder profit from property management falls 8%

Overview

• Sweden property owner's Jan-Sep rental income rose slightly from a year earlier

• Profit from property management per share fell 8% due to Norion Bank exclusion

• Company aims to cut costs and lower vacancy rate through operational adjustments

Outlook

• Company aims to reduce costs and lower vacancy rate through operational adjustments

Result Drivers

• NORION BANK EXCLUSION - Co said lower profit from property management was mainly due to Norion Bank no longer being included in associated companies

• RENTAL INCOME GROWTH – Acquisitions, completed projects, commercial indexation and higher residential rents supported rental income

• CURRENCY AND INTEREST EXPENSES - Co said currency effects and higher interest expenses due to increased debt created headwinds

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 3 "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 Fastighets AB Balder is SEK60.50, about 30% above its October 22 closing price of SEK46.53

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 11 three months ago

Reuters Recommended Reads

• Oct 21 - Sweden's Wihlborgs 9-month rental income rises on new leases, projects and renegotiation

• Oct 21 - Corem Property Group returns to profit; asset gains offset property value declines

• Oct 22 - Sweden's Castellum nine-month income falls on divestments

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(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.)