Swedish property company Wallenstam AB reported a net loss for the second quarter after negative value changes in financial instruments erased gains from its core rental business.
The Gothenburg-based landlord posted a net loss of 16 million Swedish kronor for the three months ending June 30, compared with a profit of 74 million kronor in the same period a year earlier, the company said Monday.
The result was driven by a negative change of 534 million kronor in the value of its financial instruments, which the company uses to hedge interest rate risk on its loans.
The loss from derivatives overshadowed a stronger performance in its main operations, with income from property management for the first half of the year rising 17% to 658 million kronor.
“Wallenstam is very stable – even in a time characterized by uncertainty in the world around us,” CEO Hans Wallenstam said in the report.
“We are focusing on what we can influence, and what we can actually influence, we are doing it really well.”
The company noted that demand for its apartments remains strong with no vacancies.
For the first six months of 2025, Wallenstam reported a net profit of 557 million kronor, up from 408 million kronor year-over-year, helped by a positive change in property values in the first quarter.
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