Upgrade to EW: Better execution and increased buyback offsets weaker earnings base

Research evidence excerpt

Upgrade to EW: Better execution and increased buyback offsets weaker earnings base

Equity Research

European Real Estate

6 July 2026

Castellum

Upgrade to EW: Better execution

and increased buyback offsets

CAST.ST/CAST SS EQUAL WEIGHTweaker earnings base

from Underweight

Strategically positive, financially dilutive. Castellum has European Real Estate NEUTRAL

shown it can sell assets near book and fund buybacks/ Unchanged

deleveraging. While FY27-30E IFPMAT/sh is c.6% lower, Price Target raised 24% fromSEKSEK130.00105.00

expected buyback support offsets operational caution; we Price (03-Jul-26) SEK 133.05

upgrade to EW. Potential Upside/Downside -2.3% Source: Bloomberg, Barclays Research

We update our Castellum forecasts following the announced disposals of the Skåne portfolio to Market Cap (SEK mn) 63534

Wihlborgs for net c. SEK13bn (SEK 13.3bn less SEK 371m of deferred tax adjustment), two Shares Outstanding (mn) 477.53

Stockholm office assets to Alecta Fastigheter for SEK5.0bn, and the early redemption of two Free Float (%) 69.16

outstanding EMTN bonds (0.75% 09/26 €214m outstanding, 0.875% 09/29 €600m outstanding). 52 Wk Avg Daily Volume (mn) 1.4

The transactions are strategically positive: Castellum has demonstrated that it can sell large- Dividend Yield (%) N/A

scale assets at or around book value, at a time when investor confidence in Nordic offices Return on Equity TTM (%) 3.27

remains fragile. The combined c. SEK18bn of proceeds also gives management meaningful Current BVPS (SEK) 142.78

capital allocation flexibility, and we assume 60% of proceeds are used for buybacks and 40% to Source: Bloomberg

reduce debt. However, post updating for these actual disposals and the larger assumed