Balder profit soars on property value rebound

Swedish property group Fastighets AB Balder on Tuesday reported a significant increase in its first-half net profit, driven by a positive revaluation of its property portfolio that reversed prior-year writedowns.

Profit after tax attributable to shareholders for the six months to June 30 was 3.46 billion Swedish Kronor, a substantial rise from 177 million Swedish Kronor in the same period a year earlier, the company said.

The result was boosted by unrealised gains on the value of its investment properties, which amounted to 1.31 billion Swedish Kronor, compared with a loss of 899 million Swedish Kronor in the first half of 2024.

Rental income for the period rose to 6.83 billion Swedish Kronor from 6.31 billion Swedish Kronor, while profit from property management increased to 3.39 billion Swedish Kronor from 3.12 billion Swedish Kronor.

“This summer marks 20 years since the inception of Balder in its current form, and what a journey it has been,” CEO Erik Selin said in a statement.

“From a few properties in a few locations in Sweden, to more than 1,900 properties in six countries. I’m excited about the next 20 years’ development, and I look forward to working on maximising shareholder returns.”

The Gothenburg-based company owns and manages commercial and residential properties in Sweden, Denmark, Finland, Norway, Germany, and the United Kingdom, with a portfolio valued at 226.1 billion Swedish Kronor as of the end of June.