Investment Management delivered a relatively weak quarter in terms of revenue generation, with headwinds from FX effects, restructuring costs, and low variable fees. However, AUM remained approximately flat q/q on a currency-adjusted basis, once again showing the resilience of the segment in the face of an extremely challenging real estate market.

Corporate Finance held up well, with revenues down only 5% y/y against a 50% decline in European transaction volumes over the same period. Principal Investments was quiet, with no significant divestments. A few weeks into the new year, however, Infrahubs Jönköping was divested with a small positive effect on net profit. Being able to sell projects above book value in today’s climate highlights how conservatively valued the assets are on the balance sheet. On the back of encouraging peer transactions and an attractive sustainability profile for the property, we also raise our profit estimates for the divestment of Kaktus.

Despite the short-term headwinds, we see an attractive setup materialising for the coming years. The company is well-funded, with conservatively valued project investments and a solid underlying business that can be expected to bounce back once the sentiment turns. By netting project properties against debt to show its financial strength, the company trades at an EV/EBIT multiple of 1.9 based on our figures for 2025e. Nevertheless, the quarter was below forecasts, and we slightly reduce our estimates and valuation. Our new fair value range is SEK24 (26) to SEK66 (74), with a Base Case of SEK53 (54) per share.