The first quarter of 2026 saw renewed macroeconomic and geopolitical uncertainty, adding to an already complex environment. Escalating tensions in the Middle East and continued energy-market volatility again weighed on investor sentiment, delaying decisions and dampening activity in both the global economy and real estate transaction markets. While we do not expect a prolonged downturn in our base case, these developments have reinforced a “wait-and-see” approach and contributed to a slower recovery in market activity.
 
Despite this, underlying market conditions are gradually improving. The repricing phase in European real estate is largely behind us, with early signs of stabilisation: modest value recovery, improving financing conditions and steadily increasing transaction activity. Liquidity, however, remains selective and uneven, favouring high-quality assets and income-oriented strategies.
 
Against this backdrop, I am pleased that our underlying results improved during the quarter, adjusting for last year’s positive non-recurring effects, including the reversal of provisions and rental income from Kaktus Towers, divested in May 2025. This performance reflects the resilience of our core business and continued progress in executing on our strategy.
 
Looking ahead, we see clear opportunities in the current market despite ongoing external uncertainty.
In particularly, we see opportunities in affordable rental housing and operational living concepts, such as student housing, senior housing, co-living, and serviced apartments, focused on dense urban areas across the Nordics, Spain, and Germany. Residential markets continue to benefit from structural supply shortages, low vacancy, and population growth in major cities. Operational living formats offer advantages through shorter lease cycles, flexible pricing, and specialized management.
 
During the quarter we took important strategic steps to further strengthen the Group. A new organizational structure has been implemented. We manage our business in two business areas: Investment Management and Corporate Finance. This change is intended to strengthen transparency, accountability and operational efficiency. While Balance Sheet investment, from an operational standpoint, is no longer a separate business area, we will continue to separate these assets in our monitoring and reporting.
 
A part of our continued strategy is to identify profitable, less capital-intensive co-investments with third parties to grow assets under management in the Investment Management business area. In the first quarter, we completed an investment in line with our new investment criteria, establishing a joint venture with Pictet Alternative Advisors to deliver 205 apartments in Greater Copenhagen. The structure, combining a limited equity commitment with a long-term development mandate, is intended to generate both fixed and variable fee income while maintaining capital efficiency and scalability.
 
In parallel, we continued to align key functions with our organizational structure, enabling more effective resource allocation towards higher-return opportunities. This work remains ongoing and is aimed at strengthening collaboration across our pan-European operations. With a presence in twelve countries, greater alignment and agility will enable us to operate more efficiently, respond faster to market changes and act more globally while leveraging strong local expertise.
 
At the beginning of April, we repurchased own bonds corresponding to SEK 140 million, which will reduce our debt and lower interest costs. While straightforward, this is an important step in strengthening our financial position and flexibility. Subject to the annual general meeting to be held on 12 May 2026 resolving to authorise the board of directors to resolve on repurchase of the company's own shares, the board of directors intends to launch a share repurchase program of own Class B shares of up to approximately SEK 100 million following the 2026 annual general meeting to further optimize our capital structure.
 
In the first quarter, we report an operating profit of SEK -45 million (-43) with a total income of SEK 303 million (341), with recurring revenues representing 67%. Adjusted for prior-year items affecting comparability, primarily rental income from Kaktus Towers, adjusted total income for the first quarter 2025 amounted to SEK 314 million. The 2026 adjusted operating profit was SEK 26 million better than previous year.
 
Increase in Assets Under Management
Total AUM increased from SEK 155 Bn at the end of 2025 to SEK 160 Bn as of 31 March 2026. The increase is driven by a reporting change implemented in 2026, under which assets under development are now included in AUM. Excluding this effect, AUM declined by SEK 3 Bn during the quarter, reflecting softening valuations, terminations of Asset Management mandates in Finland and redemptions. Revenue from these assets was already recognised in the comparison period, whereas the corresponding AUM was not previously reported.
 
As the European real estate fundamentals continue to improve, we expect AUM to increase, with a further improvement in earnings within the Investment Management business area.
 
The transaction market slowly picking up
Transaction markets continued to improve gradually during the quarter, although uncertainty led to some transactions being postponed. Momentum strengthened and we completed attractive mandates, particularly in the Nordics and Spain. At the same time, we also saw increased activity in France, especially in the regional markets.
 
The Corporate Finance business area reported total income of SEK 73 million, flat to previous year (73) and a 2026 first quarter operating profit of SEK -29 million, compared to -33 million in 2025.
 
A notable achievement during the quarter was the mandate executed by Corporate Finance Denmark, acting as financial advisor to one of Europe’s largest asset managers, DWS, in the refinancing of a large-scale residential development project in Herlev, Denmark. The refinancing, amounting to DKK 1 billion, was completed following the project’s development and leasing. The mandate underscores the strength of our advisory business, even in a selective market.
 
Future outlook
Looking ahead, I expect the market to continue improving gradually, although the path will not be linear and uncertainty will remain. Compared with a year ago, we are in a stronger position and well placed to act. Our priorities are clear: resilience and quality of earnings over time, operational excellence and a focus on selected targeted investments.
 
As outlined in our House View, the most attractive opportunities remain in segments supported by structural demand such as affordable housing. At the same time, opportunities are emerging more broadly. As pricing adjust, retail, particularly non-discretionary segments, and selected logistics investments are becoming more attractive. In offices, the flight to quality continues, underscoring the importance of location and sustainability.
 
In summary, we made steady progress this quarter. With a clearer structure, a more focused organization and a strengthened balance sheet, I am confident in our ability to scale and build long-term value.
 
I would like to thank Michel Fischier, who has stepped down as Catella’s CFO after five years and to welcome his successor, Gustav Jansson, who will play an important role in our continued development.
 
I would also like to warmly welcome all our shareholders to our Annual General Meeting, which will be held on Tuesday, 12 May at 10:00 a.m. at GT30, Grev Turegatan 30 in Stockholm.

Catella will be presenting the Interim Report and answering questions today at 10 a.m. CET.
To participate in the conference, please see:
https://financialhearings.com/event/54586
 
Rikke Lykke, Group CEO
Stockholm, Sweden, 8 May 2026