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

By Reuters News


Overview

  • Sweden commercial property firm's rental income up 7% for Jan-Sep, operating surplus rises 8%

  • Net income and EPS rose yr/yr for the nine-month period

  • Company says rental income growth driven by renegotiations, new leases and projects


Outlook

  • Company says number and volume of ongoing lease discussions are higher than in recent years

  • Wihlborgs expects to capitalise on strengthened market position as growth begins to pick up


Result Drivers

  • RENOGIATIONS AND NEW LEASES - Co said most of the rental income increase stemmed from renegotiations, leases and projects

  • DANISH PORTFOLIO IMPACT - Net lettings were negative, mainly due to a late lease termination in the Danish portfolio, with ongoing negotiations to fill the space

  • CUSTOMER SATISFACTION - Co reported a rise in its customer satisfaction index, citing tenant appreciation for personal service


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

9M Rental Income

SEK 3.48 bln

9M EPS

SEK 5.01

9M Net Income

SEK 1.54 bln

9M Operating Surplus

SEK 2.51 bln

9M Profit From Property Management

SEK 1.60 bln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "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 Wihlborgs Fastigheter AB is SEK90.00, about 27.8% above its October 20 closing price of SEK70.45

  • 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 20 - Hong Kong's Lai Fung annual turnover rises on stable rental income

  • Oct 19 - Norway's Mowi Q3 harvest volumes and EBIT hit record highs

  • Oct 20 - Sweden's Tele2 Q3 sales rise on service revenue growth, cuts guidance


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.)

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