Statement by the CEO – 2025

A year of change and opportunities

While the unrest and unpredictability of recent years continued in 2025, Vasakronan demonstrated its stability over time. In this interview, CEO Johanna Skogestig explains how Vasakronan is meeting the challenges it faces and what makes it Sweden’s leading property company even in the years ahead.

How would you summarise 2025?

“In many respects, 2025 was an eventful and intense year with numerous customer interactions. The instability in the operating environment and a weaker-than-expected economy dominated the year, with a consequent impact on our customers and naturally, on our operations as well.”

“In parallel, stable deliveries by operating activities confirm the strength of our company and our business model. We successfully contained costs, prioritised correctly and maintained high activity in all areas of operations. And I am proud of that.”

The office market is in flux with changing demand. What does this mean for you?

“As always, offices’ function and role change over time, but the value of meeting, collaborating and building culture stands true. Many businesses are currently reassessing their premises needs and the importance of location, function and service have come to the fore.

“This is our competitive advantage. Since we often own many cohesively grouped properties in our areas, we can develop neighbourhoods rather than just single properties. This makes us more attractive and relevant when customers search for environments that match the daily needs of their business and their employees.

“Our role as advisor is increasingly important in this transition, as we help customers find solutions that support their business, goals and culture. It is appreciated and strengthens relationships.”

What are the prospects in your various sub-markets?

“Our strategy of a presence in Sweden’s four largest growth regions has served us well and remains firm. The markets complement each other well and since urbanisation will likely continue with ever-larger cities, our sub-markets have good prospects of continuing to develop positively.

“The office market has seen differences in demand between central and peripheral areas widen in recent years. This pattern appears in all our cities. Again, we benefit from this trend as most of our property portfolio is centrally located where demand is robust and where customers continue to prioritise quality. 

“Another strength is our size and the breadth of our offering, which means we can often meet customers’ changing premises needs from within our own portfolio. Our attractively located properties and varied solutions for premises with differing service levels – from customised offices to turnkey concepts, fully-furnished Smart & Klart and co-working through Arena – enable us to offer flexibility in terms of location, size and time horizon in all our sub-markets.”

Does the uncertain operating environment affect you? What opportunities does it present?

“Naturally, it impacts us in different ways. For example, customers are giving more priority to security issues than previously when taking decisions, particularly those in the public sector. 

“The level of security is always set by the customer’s security analysis. Our task is meeting those requirements proportionately in a manner that works in the property’s environment. Our experience and expertise in this area are a strength. A quarter of our lease portfolio comprises public authorities, such as Sweden’s Fortifications Agency, Police Authority, National Courts Administration, and Prison and Probation Service. We are strongly placed with good opportunities to grow in that market segment.”

Vasakronan has historically developed its property portfolio through new construction and renovating existing properties. What is the plan going forward?

“We maintain a strong presence in attractive locations, and pursuing project development on our own land is one of the most profitable and cost-effective ways to grow and develop our business. Everything indicates this will continue to be the case in the future.

“At the same time, attractive acquisition opportunities are more abundant than in many years, and we have scope to act when the right opportunity arises.

“Going forward, we have to balance refining and developing the portfolio to strengthen quality with complementing it with strategic acquisitions. The aim is always the same – to strengthen our areas and our long-term business. Simply put – creating value.”

Vasakronan’s high sustainability ambitions are well-known. How is that beneficial?

“Working with sustainability is profitable in several ways and key to delivering on our owners’ mission, namely, to create a high and long-term risk-weighted return.  As we lower our climate footprint we also lower our operating and funding costs. This was evidenced by several of our most recent development projects obtaining favourable financing due to meeting the stringent bank and investor sustainability standards.

“Moreover, customers want properties with a high sustainability profile. Our wood framed Magasin X building and the Lumi reuse project in Södra city, Uppsala were both fully let prior to completion.

“I am particularly proud of Lumi, which shows how to combine large-scale reuse with quality and economy, while creating something that customers really want to be part of. As a project, it truly deserves all the attention it is receiving, both nationally and internationally. In 2025, the building was named the LEED Building/Project of the Year, and in March 2026, we were awarded Årets Bygge 2026 (Sweden’s most prestigious construction award). Lumi was also the only Swedish project named as a finalist in the MIPIM Awards 2026.

“In other words, our sustainability profile benefits us in many ways, making us more resilient from several perspectives.”

Finally, what will make Vasakronan Sweden’s leading property company going forward?

 “This comes down to a number of factors. Our strong balance sheet and strong financial KPIs create scope for us to invest for the best long-term value, be that in our existing portfolio, our areas or project development or, when it is right, in acquisitions. We also have a large, high-quality portfolio in some of the country’s prime locations.

“I would also like to highlight my colleagues in this since it is their commitment, expertise and business drive that turn our strategy into results.

“The last few years have taught us that no one knows what the future will bring, and our focus is therefore on what we can influence and on continuous improvement. We have a stable foundation and a clear direction going forward – to increase lettings and further deepen our customer relationships. This is how we continue creating value over time for our owners, investors and customers.”