The following is a summary of the Castellum AB (Publ) (CWQXF) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Castellum AB's Q1 2024 property management income rose by 13% year-on-year.

• The company saw a decrease in direct property costs of SEK 77 million, mainly due to lower electricity costs.

• Despite property divestments, rental income remained steady, aided by lower interest rates and cost control.

• The company continues to write down assets, expecting property value changes due to reduced cash flows.

• Castellum experienced a slight increase in vacancy rates across its portfolio.

• The company reported a reduction in like-for-like rental growth to 2.9% due to limitations in achieving full CPI indexation.

• Cash flows are currently negative; however, reductions in bond spreads indicate some positive momentum.

Business Progress:

• Castellum embarked on major projects including the renovation of buildings in Stockholm, and property divestments worth SEK 5.2 billion.

• The company sold almost SEK1 billion of non-strategic properties post the first quarter and is aiming to continuously improve profitability and returns.

• With half of their total property space sustainability-certified, the company has met their environment goals.

• Castellum is committed to reducing operating costs via efficiency measures and automation, where possible.

• The company plans on divesting non-prioritized or underperforming assets, with the process subject to market conditions and reinvestment possibilities.

• Castellum's revised financial policies aim to maintain a balance between growth and market uncertainties.

• The company shows an intention to manage the current situation by making calculated investment decisions and not taking undue risks. Future strategy includes rotating non-prioritized assets to make room for new high-yield investments.

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