Fastighets AB Balder (publ)

Strong underlying operating momentum; NAV/share up - Q3 rental income +6% YoY; profit from property management -2%, but underlying improvement is better after adjusting for distribution of Norion (net +11% adjustment mentioned). - Profit per share +11% YoY (including ~13m share buybacks in the quarter), and earning capacity unchanged at ~SEK 6.1bn. - Like-for-like rental growth +1.2%; NAV per share ~97 SEK (also stated as unchanged in the “like-for-like” framing).

Capital allocation is currently buyback-led (and management calls it “best investment”) - Company repurchased ~SEK 700m of shares in Q3 (run-rate ~SEK 2.8bn, ~5% of shares per investor question); management says this pace is guided by cash-flow availability after minor ongoing investments. - Management’s priority framing: optimize earnings per share (not just absolute balance sheet metrics); buybacks are attractive at current valuation. - Divestments: only a limited, non-recurring item noted (Anton A&D sold; framed as timing/generation shift, not a structural divestment program). JVs are discussed as something they want only where there is a clear purpose.

Financing outlook: hedging helps, costs rising slowly; watch 2027 maturities and spread volatility - Funding mix remains ~50/50 bank vs bonds; liquidity ~SEK 25bn (described as elevated due to large maturities concentrated early 2027). - Average funding cost up slightly in Q3; management noted rate/hedging optionality used over recent volatility, but future benefit is uncertain (potential financing cost headwind if optionality opportunities disappear). - Green bond issued SEK 500m (tightest spread since 2021 mentioned), but bond spreads have widened recently, especially in Eurobond market—they’re monitoring and are willing to wait if market conditions remain stressed.