EL7.AI
StocksMedium•21 October 2026•
4 min read

Wihlborgs property management profit rises 8% as net lettings decline

Key Facts

1Rental income rose 7% to 3,484 million Swedish crowns from 3,243 million crowns in the corresponding period.
2Profit from property management grew 8% to 1,604 million crowns from 1,482 million crowns.
3Net lettings for the nine months were negative 57 million crowns, compared with positive 65 million crowns a year earlier.
4The largest acquisition in the company's history comprised 95 properties covering 635,000 square metres and valued at 13.3 billion crowns.
5The company expects its loan-to-value ratio to rise to around 59% in the fourth quarter following the acquisition.

Wihlborgs' profit from property management rose 8% in the first nine months of 2026, alongside growth in rental income and operating surplus and declines in leasing and occupancy indicators. The company said in its January-September earnings statement that rental income totalled 3,484 million Swedish crowns. That represented an increase of 7% from 3,243 million crowns in the corresponding period of 2025. Operating surplus rose to 2,513 million crowns from 2,334 million crowns in the corresponding nine months. Growth in operating surplus was 8%, exceeding the increase in rental income over the same period. The improvement in financial results came as the company recorded negative net lettings, ahead of an expansion of its property portfolio through an acquisition completed in October.

Profit from property management totalled 1,604 million crowns in January-September, according to the company's financial statement. That compared with 1,482 million crowns Wihlborgs earned from the same activity in the first nine months of the previous year. On the bottom line, net profit rose to 1,539 million crowns from 1,370 million crowns in the corresponding period. The increase in net profit was reflected in earnings per share, which reached 5.01 crowns in the first nine months of the current year. Earnings per share had stood at 4.46 crowns in the corresponding period of 2025, according to the financial report. The improvement thus encompassed profit from property management, net profit and earnings per share, alongside growth in rental income and operating surplus.

Wihlborgs attributed part of the increase in rental income to completed projects, new leases, lease renegotiations and other operating items. These factors added 130 million crowns to income in the first nine months compared with the corresponding period of the previous year, according to the earnings presentation. Acquisitions also contributed to revenue growth, adding 67 million crowns to rental income over the same period. Conversely, currency movements reduced rental income by 16 million crowns compared with the first nine months of 2025. The contribution from projects, lettings, renegotiations and other items exceeded that from acquisitions, according to the figures the company reported for each group. Revenue growth was thus split between operating contributions and acquisitions, with a negative currency impact.

In leasing, the company recorded negative net lettings of 27 million crowns in the third quarter of 2026, according to its earnings presentation. That compared with positive net lettings of 6 million crowns in the third quarter of the previous year. Over the first nine months, net lettings were negative 57 million crowns, against positive 65 million crowns in the corresponding period of 2025. The shift to negative net lettings was accompanied by a decline in property occupancy, excluding projects and land, according to the financial report. Occupancy on this basis stood at 89% at the end of September, compared with 90% a year earlier. The increase in revenue and profit recorded during the period thus coincided with lower occupancy and a shift to negative net lettings in both the third quarter and the cumulative period.

After the financial period ended, Wihlborgs completed the acquisition of a property portfolio from Castellum in October, its largest acquisition to date. The portfolio comprises 95 properties with a total area of 635,000 square metres, according to the company's statement announcing completion of the deal. The acquired properties are valued at 13.3 billion Swedish crowns, while the portfolio's occupancy rate was 85% at completion. Wihlborgs described the deal in its statement as "the largest acquisition in Wihlborgs' history", with the properties transferred to the company on 1 October 2026. The company's commercial property operations focus on Malmö, Helsingborg, Lund and Copenhagen in the Öresund region. The expansion through the new portfolio follows a period in which the company's acquisitions had already contributed to higher rental income, alongside completed projects and new leases.

On financing, Wihlborgs' loan-to-value ratio stood at 52.5% at the end of September, according to its financial report for the first nine months. The company expects the ratio to rise following the acquisition completed in October, as the new portfolio is brought into its operations in the fourth quarter. It put the expected ratio at around 59% during that quarter, compared with the level recorded at the end of the reported financial period. Meanwhile, interest coverage improved to 2.9 times at the end of September from 2.8 times a year earlier, according to the earnings presentation. The company's financing position thus combines improved interest coverage during the period with an expected increase in its loan-to-value ratio after the deal. Its investor relations page set 16 February 2027 as the date for the release of its 2026 financial year results.