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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

Negative drivers behind Wihlborgs Fastigheter AB's recent performance include escalating construction costs, which may erode profit margins. The company's Q4 2024 earnings report highlighted a record-breaking rental income, but this was partly offset by increased expenses. Furthermore, the company's future growth strategies are being implemented amidst macroeconomic challenges, which may impact its ability to maintain momentum. Additionally, the recent construction and leasing deal with Malmö University may not provide a significant boost to revenue in the short term.

1.c. Company Highlights

2. Wihlborgs' Q3 2025 Earnings: Strong Financial Performance and Growth Prospects

Wihlborgs reported a robust 9-month performance for 2025, with rental income increasing by 4% to SEK 3.243 billion, driven by a 6% rise in the third quarter to a record SEK 1.101 billion. Income from property management surged 12% to SEK 1.482 billion, while the operating surplus reached SEK 2.334 billion. The company's earnings per share (EPS) came in at SEK 4.46, slightly below estimates, with the actual EPS for the quarter being 1.6 relative to the estimated 1.64. The EPRA NRV per share grew by 10% to SEK 96.23, underscoring the company's strong financial position.

Publication Date: Oct -25

📋 Highlights
  • Rental Income Growth:: Q3 rental income rose 6% to SEK 1.101 billion (record), with 4% YoY increase in 9-month total to SEK 3.243 billion.
  • Property Management Surge:: Income from property management jumped 12% to SEK 1.482 billion in 9 months, reflecting operational efficiency.
  • Strong Operating Surplus:: Operating surplus reached SEK 2.334 billion, with earnings per share at SEK 4.46 (up 4% YoY).
  • Portfolio Expansion & Yield:: SEK 1.911 billion invested in projects with a 6-7% yield on cost, and SEK 2.730 billion remaining for future investments.
  • Financial Resilience:: Equity/assets ratio of 36.2%, LTV of 52.3%, and net debt/EBITDA of 10.3x, supported by SEK 63.457 billion in total property value (10% YoY growth).

Operational Highlights

The occupancy rate stood at 90%, with a running yield of 5.6%. Wihlborgs continued to invest in new projects, with SEK 1.911 billion invested during the period, and SEK 2.730 billion remaining to be invested. The investment portfolio is expected to yield around 6-7% on cost. Notable projects include a new school in Copenhagen for NGG, with a 25-year lease, and another project in Höje Taastrup for Novo, both nearing completion. The company's property portfolio is valued at SEK 63.457 billion, a 10% increase in value over the past year.

Valuation and Growth Prospects

With a P/E Ratio of 15.42 and a P/B Ratio of 1.27, Wihlborgs' valuation appears reasonable, considering its strong financial performance and growth prospects. The company's net debt to EBITDA ratio stands at 10.3x, indicating a manageable leverage position. Analysts estimate revenue growth at 7.6% for the next year, driven by a combination of project and acquisition growth. Wihlborgs' market outlook is positive, with employment growth, long-term office rent growth, and high tenant satisfaction.

Future Developments

Wihlborgs has significant potential for development in Lund and Helsingborg, with potential for 70,000 sqm. The Ideon site in Lund is developing well, with building rights that may interest growing defense and tech industries. The company's focus on cash earnings and future growth, coupled with its strong financial position, positions it well for long-term success.

3. NewsRoom

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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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Wihlborgs Fastigheter AB (FRA:1EJ) Q3 2024 Earnings Call Highlights: Record Rental Income and ...

Oct -25

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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: 3.6

Growth: 2.1

Quality: 6.4

Yield: 6.9

Momentum: 7.5

Volatility: 10.0

1-Year Total Return ->

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VGP

A-Score: 5.8/10

Value: 3.1

Growth: 6.2

Quality: 7.0

Yield: 5.6

Momentum: 6.0

Volatility: 7.0

1-Year Total Return ->

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Aroundtown

A-Score: 5.0/10

Value: 7.7

Growth: 4.1

Quality: 5.8

Yield: 3.1

Momentum: 6.0

Volatility: 3.3

1-Year Total Return ->

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Grainger

A-Score: 4.8/10

Value: 5.4

Growth: 3.4

Quality: 5.7

Yield: 5.0

Momentum: 1.0

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
Wihlborgs Fastigheter

A-Score: 4.2/10

Value: 4.3

Growth: 4.8

Quality: 5.8

Yield: 7.5

Momentum: 1.0

Volatility: 2.0

1-Year Total Return ->

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Stock-Card
Fabege

A-Score: 4.0/10

Value: 2.8

Growth: 3.7

Quality: 4.9

Yield: 4.4

Momentum: 2.5

Volatility: 6.0

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

90.25$

Current Price

90.25$

Potential

-0.00%

Expected Cash-Flows