Sweden's Sagax Q3 rental revenue slightly beats estimates, profit forecast raised

By Reuters News


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.)

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.