Castellum AB (publ)

Massive capital return continues via share buybacks (up to SEK 8bn) - Castellum announced an additional SEK 8bn share buyback authorization, dependent on share price vs NAV (EPRA). - Already bought back ~SEK 7.66bn since start of year (~62m shares) in Jan–Sep; continuation expected through 2026 and into early 2027. - Buyback logic: prioritize best use of capital to earn a return; if the discount/NAV relationship tightens or property investment opportunities become attractive, approach can change. - Investors should note: mandate is capped at 10% of shares, and management said if the 10% cap is reached while discount remains wide, they could cancel and relaunch (implying flexibility to sustain the SEK 8bn target).

Portfolio focus shifts (“back to basics”) + administrative cost reduction target - Management is reorganizing from 4 regions to 2, merging two regions into the other two. - Target: reduce administration costs by ~15% ≈ SEK 100m (expected to be largely realized within ~12 months; possibly by summer next year based on balance-sheet timing). - Strategy emphasis: less bureaucracy, higher efficiency, more focus on leasing and disciplined capital allocation. - “Good/bad”: This is positive operationally, but it’s explicitly a response to weak leasing performance.

Leasing remains the key weakness; still negative like-for-like net leasing - Net leasing YTD: +SEK 105m overall portfolio, but like-for-like / excluding projects: -SEK 63m (the core problem). - Occupancy down to ~87% from ~94% (best in 2022), attributed to negative net leasing “trickling down”. - Lease re-contracting outcomes (standing assets): - ~40% of the total stock prolonged (no lease level change), - ~3% renegotiated with ~-2.5% rent reduction, - ~10% terminated. - Like-for-like in-place rents: -1.4% over 12 months; rental income -1.7%; NOI -3.6% (NOI more pressured due to costs and a colder winter).