Summary of 2025

Vasakronan’s assignment

is to generate a high and long-term risk-weighted return for our owners the Second, Third and Fourth Swedish national pension funds. Though never at the expense of the environment and people. A return that will benefit Sweden’s current and future pensioners.

We take responsibility

for our environmental impact and for all the people who are affected by our business. We do so by creating safe and secure work and urban environments and by applying fair working conditions. It goes without saying that we also say no to any form of discrimination.

We create value

by developing our properties, streetscapes and areas with the goal of making them attractive and sustainable. We work strategically over the long term and take responsibility for creating environments that people want to be in. This creates significant value for our customers, owners and society at large.

A3, stable outlook

Credit rating Moody’s

SEK 9.8 billion

Contracted rent

68%

Of the investment portfolio properties are EU Taxonomy-aligned

SEK 182 billion

Property value

In many respects, 2025 was an eventful year. An unstable operating environment and a weaker-than-expected economy dominated the year, with a consequent impact on our operations. It has been an intense year for Vasakronan, with many customer dialogues and continued development of our property portfolio and areas. Our operating activities have delivered stable earnings, which showcases the robustness of Vasakronan’s business model, our cost discipline and ability to prioritise.

New lettings and renegotiations

During the year, new lettings and renegotiations were signed that correspond to annual rent of SEK 670 million and SEK 1,460 million, respectively. We completed one of our largest lettings in the second quarter with Scandic, which is leasing 10,600 square metres of hotel space at the Hjärta Project development in Södra city, Uppsala. Clas Ohlson extended a lease in Stockholm for 7,300 square metres at Klara Zenit in Sergelstan. The property, which encompasses nearly 70,000 square metres, is fully let.

Other major lease extensions during the year include the Swedish Medical Products Agency with 20,000 square metres at Uppsala Science Park, Statistics Sweden with 5,300 square metres at the Nöten 5 property in Solna, and the Swedish Agency for Economic and Regional Growth, with 3,200 square metres at Nattugglan 14 in Södermalm in Stockholm. The volume of renegotiations corresponds to a renewal rate of 70% and reflects customer confidence in Vasakronan as well as the strength of our offering.

Continued refinement in attractive locations

With a focus on areas that remain attractive over time, we work deliberately with developing and complementing the portfolio. We made several important advances in our major urban development projects during the year, including in Lilla Bommen in Gothenburg where Kaj 16 is emerging. We are creating preconditions for housing and new businesses in Södra City in Uppsala and have started Construction of the combined hotel and office property, Hjärta, which is scheduled for completion in 2028.

In parallel with new construction, we continue to develop our existing property portfolio. During the year, we welcomed McKinsey to Hästskopalatset on Hamngatan in Stockholm. The property has been carefully renovated to regain its original 1930s character.

Sustainable business model and strong credit rating

Sustainability is an integral and business-critical component of Everything we do. We have continued working with energy efficiency and our specific energy consumption at the year end totalled 65 kWh/sq. m. This means that 68% of our investment properties are now Taxonomy-aligned. These milestones show that our property portfolio meets the stringent environmental sustainability requirements both of customers and of the capital market.

In the second quarter, Moody’s affirmed our rating of A3 with a stable outlook. The rating reflects our strength and was motivated by factors such as our leading position in the office market, the quality of the properties in our property portfolio and the high proportion of public sector tenants.

Strategic acquisition in Arenastaden

Activity in the transaction market showed signs of recovery, but remains cautious in terms of office properties. This creates opportunities for Vasakronan, and during the summer we acquired the Solna United property in Arenastaden. The acquisition makes a high-quality addition to our property portfolio in an area that I Believe will hold its value over time.

Award-winning reuse Project

The Sweden Green Building Council recognised the Lumi redevelopment project in Södra city in Uppsala by awarding it LEED Building/Project of 2025. With 40% reused, recycled or renewable materials and an extremely low climate impact, the ambitious reuse project has one of the highest LEED scores in the world, and Lumi has set a new standard for circular construction and at the same time shown that it is profitable. The project was also awarded Årets Bygge 2026 (Sweden’s most prestigious construction award) and was named a finalist in the 2026 MIPIM Awards.

Business model for profitability and value creation

Our vision is to create future-proof cities for everyone, where people and companies thrive. Our business model enables us to achieve profitability and create sustainable value for our stakeholders. The overriding goal is to deliver a high and long-term risk-weighted return, though never at the expense of the environment and people.

Our profitability is derived from letting premises at our properties for recurring revenue along with managing and refining our properties in an increasingly sustainable way for a positive value change. This is how we achieve a high total yield, which creates the wherewithal to distribute dividends to our owners and reinvest in the business.

Properties in prime locations

High-quality property portfolio and largest property owner in the city centre

Our property holdings are focused on properties with office and retail space in parts of Sweden with healthy economic growth. The property portfolio focuses on attractive areas with good transport links and excellent possibilities for developing properties, streets and neighbourhoods as a cohesive whole. In all of these cities – Stockholm, Uppsala, Gothenburg and Malmö – Vasakronan is the largest property owner in the city centre.

At the end of the year, property holdings amounted to 166 properties with a market value of SEK 182 billion.

Overview of our sub-markets and our portfolio by city

The preferred choice for our customers

The core of Vasakronan’s business is letting premises for offices and city retail, in combination with offering tenants a high degree of service and flexible business solutions. Our customers are at the centre of everything we do and our success depends on our ability to understand and meet their needs. This is why we keep abreast of our customers’ development and maintain close dialogues with them. A high quality property portfolio and strong offering enables us to offer tenants new premises within the property portfolio when their needs change.

Our lease portfolio includes leases with contracted rents totalling SEK 9.8 billion, and with an average remaining maturity of 3.4 years. Of the contracts that have been the subject of renegotiation and extension in the past 12 months, 70% have chosen to remain a tenant of Vasakronan. The portfolio also has a highly diverse spread of tenants and sectors. The largest category is the public sector, which accounts for 25% and no individual tenant accounts for more than 3% of the contracted rent. Together, the ten largest tenants account for just 18%.

SEK 9.8 billion

Contracted annual rent

3,4 years

Average remaining lease term

88%

Occupancy rate

25%

Of the contracted rent pertained to the public sector

Good access to financing

For property sector operations, access to financing on favourable terms is critical for achieving long-term high yields over time. Our borrowing strategy is based on having a diversified financing base with low risk. We strive to have as broad a financing structure as possible, both in terms of loan instruments and in terms of markets, while maintaining a healthy reserve in the form of a credit facility arranged with the company’s owners.

We are Sweden’s largest issuer of green corporate bonds and commercial paper, and of the total loan portfolio, the share of green financing is 87%.

A strong credit rating is an important precondition for ensuring access to financing. In 2025, Moody’s affirmed Vasakronan’s rating of A3 with a stable outlook. The rating is motivated by factors such as our leading position in the office market, the quality of the properties in our property portfolio and the high proportion of public sector tenants.

SEK 75 billion

Total borrowings

3.6x

Interest coverage ratio

40%

Loan-to-value ratio

2.5%

Average interest rate

Sustainable urban development, places where people want to be

As a city developer, Vasakronan wants to create the best conditions for organisations who want to be seen and operate in the city. We do this in a variety of ways. Sometimes this is achieved through major structural changes, and other times by creating a favourable mix of activity, services, retail and cultural spaces at street level.

When we renovate or build new properties, we do so sustainably and with the goal of developing the best products in prime locations – and always from a holistic perspective. As one of the major property companies, Vasakronan often contributes to the development of entire neighbourhoods or areas in the cities where we conduct operations. One such area is Sergelstan in Stockholm.

During the year, the Hästskopalatset project on Hamngatan in Stockholm was completed. Final reporting of the project is scheduled for early 2026. We are also continuing to work on our major urban development projects, including in Lilla Bommen in Gothenburg where Kaj 16 is emerging and scheduled for completion in 2027. We are creating preconditions for housing and new businesses in Södra city in Uppsala and have started construction of the combined hotel and office property, Hjärta, which is scheduled for completion in 2028.

At the end of the year, the total investment volume of major ongoing property projects amounted to SEK 3,375 million, of which 57% had been capitalised. At the same date, the occupancy rate for projects was 59%.

Our responsibility

Doing everything we can to become more sustainable is a prerequisite for delivering on our owners’ assignment to generate a high and stable long-term return and for achieving our vision to create future-proof cities for everyone, where people and companies thrive. For these reasons, we started working with sustainability matters a long time ago. Sustainability is integrated across operations and is at the core of the company’s guiding strategies and business decisions. Our high-set ambition of being sustainability leaders requires everyone to continually contribute.

Our efforts are based on an extensive assessment of our operations where we have identified the most material sustainability matters for our business. The assessment, known as a double materiality assessment, describes how we impact our operating environment and how the operating environment impacts us. We have previously adopted a Roadmap to reach net-zero emissions across the entire value chain by 2030. Achieving this requires that we work together with our customers and suppliers.

Our operations affect thousands of people: our employees, suppliers and everyone in and around our properties. On their behalf, we need to ensure safe, secure and healthy environments with good working conditions free from discrimination.

Vasakronan – summary of 2025

Sweden’s leading property company