Divestment in the US is also a logical step on our established path – to primarily focus our resources in Sweden, particularly in growth locations where we foresee long-term demand and potential.
During the first half of the year, Corem’s total divestments and agreed divestments totalled nearly SEK 3.5 billion in underlying property value, with a total net earnings effect of approximately SEK –135 million.
Our objective — to divest properties for more than SEK 5 billion during the year — stands firm and we have already made good progress in this regard. We are seeing continued interest in our properties from both Swedish and international investors and although transaction volumes are generally lower than in prior years, there is demand for high-quality, sustainable properties in urban hubs, which provides us room to manoeuvre.
Financial strengthening and capital measures
Some of our most important initiatives during the first half of the year were aimed at strengthening the balance sheet. In February, we redeemed bonds for approximately SEK 1.4 billion and a US loan of approximately SEK 500 million, while also issuing a new green bond of SEK 1 billion with maturity in 2028.
In addition, in June, we implemented a directed new share issue of 192 million shares of Series B, which generates SEK 939 million including also the second tranche which is subject to approval at the coming extra general meeting. The new issue is aimed at improving our capital structure, reduce net liabilities and create conditions to redeem the outstanding hybrid bond of SEK 1.1 billion.
The results of several major refinancings are visible in our capital tie-up, where the volume maturing in 2025 has decreased from approximately 18 billion at the start of the year to 5 billion as of the end of June. During the second quarter we also restructured interest rate swaps of approximately 3 billion, which has had a positive impact on the fixed interest rate. In addition, new swaps of 1 billion were signed during the quarter, at good levels.
During the quarter, we also sold parts of our holding in Klövern, where we now remain with an ownership of approximately 8 per cent.
These financial measures improve our financial position in the long term and we are gradually moving forward toward our targets, with conditions to develop values through our portfolio.
Focus ahead
Our work to strengthen the balance sheet is by no means complete. We will continue along the established path and for continued optimization.
The business environment is challenging, but we stand well equipped ahead of the second half of the year with a more focused portfolio and continued stable letting. Adding a strengthened financial foundation, which benefits further from our aim to redeem the hybrid bond as well as our continued work with the portfolio.
We now leave an eventfgul first half of the year behind us, where we have acted with focus on the long term, and move forward with good conditions to create increasing shareholder value.
I now want to wish you a pleasant summer and extend warm thanks to all employees, tenants and shareholders who continuously contribute to Corem’s development.
Rutger Arnhult, Chief Executive Officer,
Stockholm, 11 July 2025