Logistea AB reported 2026 Q1 results today.

An overview:

• They acquired SEK 1.3bn of properties at an average 7.4% yield funded primarily by low-cost debt this quarter.

  • Their debt has an average ~4.3% rate; new debt is available at a ~3% floating rate or ~3.8% fixed for 3yrs).

• This was the primary driver of earnings growth, which contributed to a ~20% increase in profit from property management per share year-on-year.

• Occupancy was stable at 97% and WALT declined slightly to 9.1yrs (with limited lease expiries this year, will continue to tick down).

• Like-for-like NOI growth was 1.8% on a constant currency basis but flat in SEK.

• However, this was a very strong leasing quarter with net letting absorption of SEK 22m - a marked improvement from net letting that has been roughly flat since 2024.

  • The vast majority of this positive leasing activity - SEK 18m - commences in Q2 - Q4 2026, so Q1 2026 financials do not yet reflect the impact. This provides a good tailwind for like-for-like NOI growth for the remainder of the year.

• They’ve levered up the balance sheet somewhat to just over 50% LTV based on external valuations and 8.2x net debt / EBITDA to fund acquisitions but continued to improve their financing terms.

  • They’ve continued to achieve lower spreads on refinancing - for example they refinanced SEK 1.1bn at a 70 bps lower margin than the previous terms during Q1.

  • They also improved the principal amortization terms on their bank loans, to 2.5% (~40 year amortization), freeing up SEK 40m of cash flow per annum.

• I expect they will be able to continue to refinance at lower spreads as debt matures - they indicated that new financing today is at margins between 120 - 140 bps, which is 20 - 40 bps lower than their weighted average in-place margin for bank loans of ~160 bps.