Sweden's Castellum nine-month income falls on divestments
Sweden's Castellum nine-month income falls on divestments
Overview
Sweden commercial property firm's nine-month income fell due to divestments and organizational changes
Net income after tax for January–September rose year-over-year
Company repurchased 62 mln shares for SEK 7.6 bln, with further buybacks approved
Outlook
Castellum aims to reduce administration costs by 15%, or nearly SEK 100 mln
Company is simplifying its organisation, moving from four regions to two
Result Drivers
ORGANIZATIONAL CHANGES - Castellum said it is simplifying its structure and moving from four regions to two to improve efficiency and reduce administration costs by 15%, per CEO Pål Ahlsén
DIVESTMENTS - Castellum attributed lower income to property divestments during the year
SHARE REPURCHASES - Castellum repurchased 62 mln shares for SEK 7.6 bln and received approval for further buybacks
Company press release: ID:nMFN9v4NL2
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
9M Net Income |
| SEK 2.87 bln |
|
9M Operating Income |
| SEK 4.83 bln |
|
9M Profit From Property Management |
| SEK 3.43 bln |
|
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 10 "hold" and 2 "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 Castellum AB is SEK137.00, about 8.4% above its October 21 closing price of SEK126.40
The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 14 three months ago
Reuters Recommended Reads
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Oct 21 - Corem Property Group returns to profit; asset gains offset property value declines
Oct 21 - Fabege Q3 profit rises on residential development
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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.)