Corem Property Group AB

CORE B

Equity

ISIN SE0010714287 / Valor 39919749

NASDAQ Nordic Exchange Stockholm, Equities (2025-12-19)

SEK 3.92-0.15%

Corem Property Group AB
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About company

Corem Property Group AB is a leading Swedish commercial real estate company, ranking among the top five in the country by both asset market value and floor space. The company manages a diversified portfolio of approximately 420 properties, totaling around three million square meters of lettable area, primarily comprising office and logistics spaces. While the majority of its assets are located in Sweden, Corem also maintains a presence in Denmark and New York City. In response to rising interest rates, Corem has strategically sold portions of its portfolio, including a significant SEK 5.35 billion logistics asset sale to Blackstone and a SEK 1.2 billion stake in Castellum, to strengthen its balance sheet and reduce debt. With total assets valued at SEK 85.3 billion as of March 2023, Corem benefits from a broad tenant base of approximately 3,800 investment-grade clients and properties situated in prime metropolitan areas. The company maintains a BBB- credit rating, supported by its financial resilience, diversified holdings, and focus on high-quality locations and tenants. Despite challenges from elevated energy prices impacting profitability in 2022, Corem is actively working to enhance its margins through measures such as reducing vacancies and improving energy efficiency.

Summarized from source with an LLMView SourceSector: Finance

Key financials

H1 highlights: Income SEK 1,792m (1,882); operating surplus SEK 1,166m (1,223); net financial items SEK -619m (-622); profit from property management SEK 476m (517); value changes SEK -761m (-485); net loss SEK -578m (6); NAV per ordinary share SEK 13.44 (15.97).

Portfolio divestments

During Q2 Corem divested 9 properties with an underlying property value of SEK 1,851m and agreed sale of the New York project 28&7 (~SEK 770m) to close in Q3. H1 total divestments and agreed divestments amounted to nearly SEK 3.5bn underlying value (net earnings effect ~SEK -135m); target remains to divest >SEK 5bn in 2025. Corem is exiting Örebro and has reduced its Klövern holding from 17% to ~8% (quarter profit impact SEK -238m).

Leasing and operations

Operationally Corem reported positive net letting in Q2 of SEK 10m (Q2 previous 37m) though the six‑month net letting was SEK -27m (87). Significant leases signed include Norrköping Municipality (3,300 m2), Smartoptics expansion (~1,800 → 4,200 m2 in Kista), Region Stockholm (1,700 m2, Globen) and approx. 600 m2 at 1245 Broadway, New York. Comparable portfolio costs fell by ~4%.

Capital measures and financing

Corem took several balance‑sheet measures: redeemed bonds (~SEK 1.4bn) and a US loan (~SEK 500m), issued a SEK 1bn green bond (2028), and carried out a directed new issue of 192m Class B shares (proceeds SEK 939m including a tranche subject to EGM approval) intended to create scope to repay a SEK 1.1bn hybrid. Maturing volume in 2025 was reduced from ~SEK 18bn to SEK 5bn; interest‑rate swaps of ~SEK 3bn were restructured and new swaps of SEK 1bn signed.

Management view and outlook

CEO Rutger Arnhult emphasises stabilised core operations, cost control and continued portfolio streamlining to strengthen the balance sheet. Management notes a challenging but slowly stabilising market and intends to continue divestments and financial consolidation to improve flexibility and shareholder value.

Summarized from source with an LLMView Source

Key figures

-40.9%1Y

-49.9%3Y

-79.3%5Y

Performance

44.8%1Y

53.3%3Y

50.4%5Y

Volatility