Friday, 8 May 2026
Catella reported improved underlying earnings in the first quarter of 2026 despite continued macroeconomic and geopolitical uncertainty affecting European real estate markets.
The company said escalating tensions in the Middle East, ongoing energy market volatility and cautious investor sentiment continued to slow decision-making and delay transactions across the property sector. While market conditions remain uncertain, Catella noted that the repricing phase in European real estate appears to be largely complete, with signs of stabilisation emerging through modest value recovery, improving financing conditions and gradually rising transaction activity.
Catella reported an operating loss of SEK 45 million in the first quarter, compared with a loss of SEK 43 million a year earlier. Total income declined to SEK 303 million from SEK 341 million in the same period of 2025. Recurring revenues accounted for 67 percent of total income.
The company stated that, after adjusting for non-recurring items in the prior-year period, including rental income from Kaktus Towers which was divested in May 2025, adjusted operating profit improved by SEK 26 million year-on-year.
Assets under management increased from SEK 155 billion at the end of 2025 to SEK 160 billion as of 31 March 2026. The increase was partly linked to a reporting change that now includes assets under development within AUM calculations. Excluding this adjustment, AUM declined by SEK 3 billion during the quarter due to softer valuations, mandate terminations in Finland and redemptions.
The company said it continues to see opportunities in residential and operational living sectors, particularly affordable rental housing, student accommodation, senior housing, co-living and serviced apartments in urban markets across the Nordics, Spain and Germany. According to Catella, these sectors continue to benefit from structural housing shortages, low vacancy levels and population growth in major cities.
During the quarter, Catella implemented a new organisational structure focused on two business areas: Investment Management and Corporate Finance. The company said the changes are intended to improve transparency, accountability and operational efficiency across its pan-European operations.
As part of its investment strategy, Catella also completed a joint venture with Pictet Alternative Advisors to develop 205 apartments in Greater Copenhagen. The company described the structure as a capital-efficient co-investment model designed to generate long-term fee income while limiting equity exposure.
In early April, Catella repurchased SEK 140 million of its own bonds to reduce debt and interest costs. Subject to shareholder approval at the annual general meeting on 12 May 2026, the board also plans to launch a share buyback programme of up to SEK 100 million in Class B shares.
Within Corporate Finance, first-quarter income remained stable at SEK 73 million, while the operating loss improved to SEK 29 million from SEK 33 million in the corresponding period last year.
Among the mandates completed during the quarter was the refinancing of a residential development project in Herlev, where Catella Corporate Finance Denmark acted as adviser to DWS on a DKK 1 billion refinancing transaction.
Looking ahead, Catella said it expects European real estate markets to continue recovering gradually, although volatility and uncertainty are likely to persist. The company identified affordable housing, selected retail assets and logistics investments as areas where investment opportunities are improving, while noting that demand for high-quality office assets remains driven by location and sustainability considerations.
