Genova Property Group (GPG) investor relations material

Executive summary

• Profit for the period rose 151% year-over-year to SEK 158m, driven by positive fair value changes in investment properties and derivatives.

• Net operating income increased 6% to SEK 204m, while income from property management fell 15% to SEK 70m due to lower JV/associate contributions and value changes.

• High leasing activity resulted in new agreements with an annual rental value of SEK 40m, expected to boost occupancy and long-term earnings.

• Major property acquisition in Stockholm for SEK 673m is expected to increase income from property management per share by 15%.

• The business model balances stable cash flows from property management with value creation through development and divestment of building rights.

Financial highlights

• Rental income for Jan–Jun 2026 was SEK 281m, up 7% year-over-year; net operating income was SEK 204m, up 6%.

• Income from property management was SEK 70m, down from SEK 82m year-over-year.

• Long-term NAV per share increased 7% to SEK 78.22.

• Loan-to-value ratio at 56.6%, equity/assets ratio at 32.8%, and interest coverage ratio at 1.8x.

• Property value at period-end was SEK 10.7bn; excess value in building rights portfolio estimated at SEK 1.4bn.

Outlook and guidance

• Liquidity is expected to improve in 2026–2027 as agreed sales of development rights are completed.

• The Board raised the target for average annual growth in income from property management per share to 25% and 15% in long-term NAV per share.

• Management sees continued opportunities for value creation through acquisitions and development rights divestments.

• Earnings capacity is expected to rise by SEK 29m after Q3 2026 and by SEK 26m after year-end 2026 due to new lettings and acquisitions.

• New financial targets emphasize cash flow and profitable growth, with unchanged risk limits for key ratios.