Castellum posts profit amid shareholder-led board overhaul

Swedish property company Castellum AB on Tuesday reported a net profit for the first half of the year, reversing a loss from a year ago, as it navigates a significant board overhaul initiated by its largest shareholder.

The company posted a net income of 191 million Swedish kronor for the six months ended June 30, compared with a net loss of 103 million kronor in the same period last year.

Total income fell to 4.79 billion kronor from 4.98 billion kronor, while income from property management also declined, the company said.

The results come just days before a July 18 extraordinary general meeting where shareholders will vote on a new board proposed by investor Akelius Apartments Ltd., which prompted four directors, including the chair, to announce their departure.

Despite the boardroom changes, Castellum said it made net investments of 2.8 billion kronor during the period, including a 1.7 billion kronor acquisition of five properties.

"Castellum remains a very stable company. However, the global environment is uncertain, and we must adapt accordingly," Chief Executive Joacim Sjöberg said in a statement.

The company also noted that its loan-to-value ratio, a measure of debt against its assets, was 36.7% and that Moody's had upgraded its credit rating to Baa2.