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1. Company Snapshot

1.a. Company Description

Wihlborgs Fastigheter AB (publ), a property company, owns, develops, rents, and manages commercial properties in the Öresund region, Sweden.The company's property portfolio includes office/retail, logistics/production, and projects and land in Malmö, Helsingborg, Lund, and Copenhagen.As of December 31, 2021, its property portfolio consisted of 299 properties with a total lettable area of approximately 2,143,000 square meters.


The company was founded in 1924 and is headquartered in Malmö, Sweden.

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1.b. Last Insights on WIHL

Wihlborgs Fastigheter's recent performance has been impacted by rising property taxes and vacancy rates, as highlighted in its Q3 2025 earnings call. Despite a 6% increase in rental income and positive net letting, these factors have posed challenges. Additionally, the company's valuation has been under scrutiny following recent share price movements. According to a recent analysis, investors are closely monitoring trends, particularly in light of the company's longer-term performance. Higher property taxes and vacancy rates have added pressure on the company's financials.

1.c. Company Highlights

2. Wihlborgs' Strong FY 2025 Results Driven by Rental Income Growth

Wihlborgs reported a strong financial performance for FY 2025, with rental income increasing by 4% to SEK 4.354 billion, and income from property management rising by 14% to SEK 2.038 billion. The company's EPS came in at SEK 7.22, although the Q4 EPS was 1.47, slightly below estimates of 1.68. The operating surplus was SEK 3.107 billion, and the result for the period was SEK 2.220 billion. As Ulrika Hallengren noted, "Despite a slow rental market, we've delivered growth across key metrics." The net debt to EBITDA stood at 10.4x, and the company's financial metrics are comfortable, given its high investments and debt financing.

Publication Date: Feb -11

📋 Highlights
  • 20-Year Growth Milestone: Achieved 20 consecutive years of growth with Q4 rental income up 5% to SEK 1.111 billion and full-year income rising 4% to SEK 4.354 billion.
  • Portfolio Valuation & Yields: External appraisers valued 100% of the portfolio at SEK 64.414 billion with a 90% occupancy rate and a running yield of 5.5%, increasing to 6.3% when fully let.
  • High Investment Activity: Invested SEK 2.738 billion in 2025, with a record SEK 2.144 billion remaining for approved projects, maintaining yields on cost between 6–7%.
  • Liquidity & Financial Leverage: Maintained SEK 3.2 billion in available funds and a net debt-to-EBITDA ratio of 10.4x, with equity up SEK 1.2 billion to SEK 24.3 billion and an LTV of 51.6%.
  • Rental Market Resilience: Secured 7 out of 10 top governmental tenants contributing 20% of rental income, with rental values rising 7.4% to SEK 4.990 billion by January 2026.

Revenue Growth and Property Valuations

The company's rental value as of January 2026 is SEK 4.990 billion, up 7.4%, driven by acquisitions, indexations, investments, and tenants willing to pay for quality. The external appraisers value 100% of the portfolio at SEK 64.414 billion, with a 90% occupancy rate and an operating surplus of SEK 3.304 billion, giving a running yield of 5.5%. Analysts estimate next year's revenue growth at 4.0%, indicating a stable outlook.

Valuation Metrics

Using the current P/E Ratio of 12.61 and P/B Ratio of 1.2, we can assess what's priced into the stock. The EV/EBITDA ratio stands at 16.34, and the Dividend Yield is 3.5%. The Net Debt / EBITDA ratio is 8.83, slightly higher than the reported 10.4x net debt to EBITDA, indicating a leveraged position. The ROE is 9.57%, suggesting a relatively stable return on equity.

Investment Pipeline and Future Prospects

Wihlborgs has a strong pipeline of projects, with SEK 2.144 billion remaining to invest in approved projects. The company is developing several projects across Sweden, including a new office building in Lund's central station area, and has invested SEK 2.7 billion in projects and the portfolio in 2025. Ulrika Hallengren estimates that 2026 will not be a record year, but the company will still have a good pace of investment. The rental market outlook is positive, with the company experiencing strong rental income growth from already signed leases coming in during 2026.

Financial Flexibility and Dividend

The company has SEK 3.2 billion in available funds, with unutilized credit facilities and liquid funds, giving it flexibility to seize opportunities in the market. A proposed dividend of SEK 3.30 per share is also expected to provide a return to shareholders. The company's financial metrics and dividend yield make it an attractive option for investors seeking stable returns.

3. NewsRoom

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Wihlborgs Fastigheter AB (FRA:1EJ) Q4 2025 Earnings Call Highlights: Record Rental Income and ...

Feb -10

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Wihlborgs Fastigheter AB (FRA:1EJ) Q3 2025 Earnings Call Highlights: Strong Rental Income ...

Oct -23

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Wihlborgs Fastigheter (OM:WIHL): Examining the Valuation After Recent Share Price Movement

Oct -06

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Wihlborgs seals construction and leasing deal with Malmö University, Sweden

Apr -01

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Wihlborgs Fastigheter AB (FRA:1EJ) Q4 2024 Earnings Call Highlights: Record Rental Income and ...

Feb -12

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Wihlborgs to build new facility for BPC Instruments in Lund

Jan -09

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Malmö University selects design concept for its new building

Nov -20

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Whitecap Resources (TSX:WCP) Closes $400M Note Offering, Highlights Strong Financial Positioning

Nov -04

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.61%)

6. Segments

Rental

Expected Growth: 6.5%

Wihlborgs Fastigheter AB's 6.5% rental growth is driven by strong demand for commercial properties in Sweden, particularly in Malmö and Lund. The company's strategic focus on office and logistics properties, coupled with its proactive asset management and value-enhancing initiatives, contribute to the growth. Additionally, the Swedish economy's resilience and favorable business climate support the upward trend in rental income.

Heating, Electricity, and Water and Sewerage

Expected Growth: 7.5%

Wihlborgs Fastigheter AB (publ) achieved 7.5% growth driven by increasing demand for sustainable buildings, energy-efficient solutions, and rising property values. Heating growth was fueled by investments in biomass and district heating. Electricity growth was driven by the adoption of renewable energy sources and energy storage solutions. Water and Sewerage growth was attributed to infrastructure upgrades and water conservation measures.

7. Detailed Products

Office Spaces

Wihlborgs Fastigheter AB (publ) offers high-quality office spaces for rent, tailored to meet the needs of businesses of all sizes.

Industrial and Logistics Properties

The company provides industrial and logistics properties for rent, suitable for various industries and businesses.

Retail Spaces

Wihlborgs Fastigheter AB (publ) offers retail spaces for rent, located in prime areas with high foot traffic.

Residential Properties

The company develops and manages residential properties, offering apartments and houses for rent.

Land and Development Projects

Wihlborgs Fastigheter AB (publ) acquires and develops land for future projects, including residential and commercial properties.

Property Management Services

The company provides comprehensive property management services, including maintenance, repairs, and administrative support.

8. Wihlborgs Fastigheter AB (publ)'s Porter Forces

Forces Ranking

Threat Of Substitutes

Wihlborgs Fastigheter AB (publ) operates in the real estate industry, where substitutes are limited. However, the company faces competition from other real estate companies, which could lead to a medium threat of substitutes.

Bargaining Power Of Customers

Wihlborgs Fastigheter AB (publ) has a diversified customer base, which reduces the bargaining power of individual customers. Additionally, the company's strong brand reputation and high-quality properties reduce the likelihood of customers switching to competitors.

Bargaining Power Of Suppliers

Wihlborgs Fastigheter AB (publ) relies on suppliers for construction materials, maintenance services, and other essential inputs. While the company has some bargaining power due to its size, suppliers may still have some negotiating power, particularly in times of high demand.

Threat Of New Entrants

The real estate industry has high barriers to entry, including significant capital requirements and regulatory hurdles. Additionally, Wihlborgs Fastigheter AB (publ) has a strong brand reputation and established relationships with customers, making it difficult for new entrants to gain traction.

Intensity Of Rivalry

The real estate industry is highly competitive, with many established players competing for market share. Wihlborgs Fastigheter AB (publ) faces intense competition from other real estate companies, which could lead to pricing pressure and reduced market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 55.52%
Debt Cost 3.95%
Equity Weight 44.48%
Equity Cost 9.08%
WACC 6.23%
Leverage 124.84%

11. Quality Control: Wihlborgs Fastigheter AB (publ) passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Allreal Holding

A-Score: 6.1/10

Value: 3.3

Growth: 2.1

Quality: 6.6

Yield: 6.9

Momentum: 8.0

Volatility: 10.0

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VGP

A-Score: 6.1/10

Value: 3.1

Growth: 6.1

Quality: 7.0

Yield: 5.6

Momentum: 7.5

Volatility: 7.3

1-Year Total Return ->

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Grainger

A-Score: 5.4/10

Value: 5.6

Growth: 5.4

Quality: 6.4

Yield: 5.0

Momentum: 2.0

Volatility: 8.0

1-Year Total Return ->

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Aroundtown

A-Score: 4.7/10

Value: 7.7

Growth: 4.1

Quality: 6.1

Yield: 3.1

Momentum: 4.0

Volatility: 3.3

1-Year Total Return ->

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Fabege

A-Score: 4.3/10

Value: 2.4

Growth: 3.7

Quality: 5.0

Yield: 4.4

Momentum: 4.0

Volatility: 6.0

1-Year Total Return ->

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Wihlborgs Fastigheter

A-Score: 4.2/10

Value: 4.2

Growth: 4.8

Quality: 5.7

Yield: 7.5

Momentum: 1.0

Volatility: 2.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

90.5$

Current Price

90.5$

Potential

-0.00%

Expected Cash-Flows