Castellum: 2Q26 Conf. Call: Operational headwinds persist as capital recycling continues

Research evidence excerpt

Castellum: 2Q26 Conf. Call: Operational headwinds persist as capital recycling continues

J P M O R G A N Europe Equity Research

15 July 2026

Castellum Not Rated

CAST.ST, CAST SS

2Q26 Conf. Call: Operational headwinds persist as Price (14 Jul 26):Skr128.35

capital recycling continues

We present our key take-aways from today's conference call. European Property

Neil Green, CFA AC

• CEO: Castellum continued its portfolio recycling, selling the Öresund (44-20) 7134-4478

portfolio (ex-Copenhagen) for SEK13.3bn and a Stockholm office portfolio neil.d.green@jpmorgan.com

for SEK5bn. Management said both assets were sold at attractive prices above J.P. Morgan Securities plc

their return hurdles, while H1 share buybacks totalled SEK4.6bn (39m shares). Krishna Sathwik Beechu

• Leasing improved on the back of Ericsson taking the full Infinity project, (91-22)krishna.s.beechu@jpmchase.com6157 5847

driving H1 net leasing to SEK110m. However, underlying leasing remained J.P. Morgan India Private Limited

weak, with net leasing excluding projects still negative and occupancy falling

to 87.5%. Operational trends remained challenging. Renewed and

renegotiated leases were signed at 1% lower rents overall, while terminations

remained elevated. Like-for-like in-place rents declined 1.3%, rental income

fell 2%, and NOI was pressured by higher vacancy and increased winter-

related costs.

• Castellum signed SEK24bn of disposals YTD, including the AP7, Alecta

and Willebois transactions. Assets were sold at c.2% above prior book

values, reinforcing management's view that transaction market pricing

remains supportive.

• Property values were broadly stable, with Q2 valuation changes of -

SEK165m largely reflecting signed disposals, partly offset by a significant