Sweden's Castellum Takes Portfolio Charge

STOCKHOLM-Castellum, one of the major listed real estate companies in Sweden, has reported 18% first half growth in income from property management, but took a hefty depreciation charge and saw its loan-to-value ratio tick higher in June to 53% from 50% at end-2008.

Income from property management – net of changes in value and tax – amounted to SEK557 million (€51 million) – equating to SEK3.40 per share – and up from €43 million equivalent in 1H08. The 18% improvement above came from the effect of lower interest rates, but also higher rental incomes and investments. During the period Castellum made investments totalling €51.5 million, around one third of the volume invested in first half 2008. Rental income for the half rose 10.5% to €122 million. However, it took a charge of no less than €74 million in value on properties, about 45% higher than June 2008, taking total value to €2.63 billion, from €2.65 billion in December.