Release Date: July 11, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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Intea Fastigheter AB (publ) (OSTO:INTEA B) reported a strong second quarter with a stable business model focused on long-term public sector tenants.
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The company successfully raised over SEK1 billion in new capital through a direct share issue.
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Intea expanded its asset portfolio by acquiring security properties from Specialfastigheter, including seven prisons and 46 institutions.
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The company added nearly SEK6.5 billion in new projects during the quarter, with an annual rental value of approximately SEK480 million.
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The average lease term with public sector tenants increased to 8.1 years, reflecting strong tenant relationships.
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The company faced a negative impact from changes in value from interest rates, amounting to SEK286 million.
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A write-down of SEK70 million was taken on the company’s hydropower plants.
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The interest rate increased to 2.95% at the end of the period, primarily due to a high share of interest hedging.
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The company’s debt portfolio stands at SEK12.2 billion, which includes a mix of bank loans, bonds, and commercial papers.
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Despite strong performance, the company operates in a market marked by uncertainty and rapid changes.
Q: Can you elaborate on the recent acquisition of security properties from Specialfastigheter? A: Charlotta Hoerlin, CEO: The acquisition includes seven prisons in security class 2 and 3, as well as 46 institutions, totaling over 78,000 square meters. The Swedish Prison and Probation Service and the National Board of Institutional Care are the tenants. The annual rental value is over SEK190 million, and the property value is SEK1,390 million. This acquisition expands our asset portfolio and complements our project portfolio positively.
Q: What are the financial highlights for Q2 2025? A: Magnus Ekstroem, CFO: We reported a strong Q2 with a 24% increase in rental income, a 67% increase in profit from property management, and a positive impact from changes in investment property values of SEK143 million. However, there was a negative impact of SEK286 million from interest rate changes. Our contracted rent is SEK1.5 billion, and the property value is SEK25.3 billion with a yield of 5.5%.
Q: How is Intea Fastigheter AB managing its project developments? A: Charlotta Hoerlin, CEO: We added nearly SEK6.5 billion in new projects this quarter, with an annual rental value of approximately SEK480 million. These projects are located in Gavle and Linkoping for the Swedish Police Authority and Kristianstad for the Swedish Prison and Probation Service. Since the beginning of the year, we’ve added approximately SEK11.3 billion in project volume.
