WIHL: Core Asset Expansion And Leasing Activity Will Drive Resilience

Narrative Update on Wihlborgs Fastigheter

Analysts have lowered their price target for Wihlborgs Fastigheter to SEK 105 from SEK 120, citing valuation concerns and reduced estimates as the main reasons for the downgrade.

Analyst Commentary

Bullish Takeaways

• Bullish analysts continue to acknowledge Wihlborgs Fastigheter's stable cash flow profile, which is seen as a positive in a challenging market.
• The company's high-quality asset base provides a foundation for resilience and long-term growth potential.
• Ongoing operational execution and disciplined management remain key strengths. This supports investor confidence despite recent valuation adjustments.

Bearish Takeaways

• Bearish analysts highlight current valuation levels as a concern. In their view, this leaves limited upside from current pricing.
• Recent reductions in estimates reflect a more cautious outlook on near-term growth and rental income expectations.
• There is increased scrutiny on potential headwinds from the broader macroeconomic environment. This could limit earnings visibility in the coming quarters.

What's in the News

• Capio Hjärnhälsan has opened a new psychiatric clinic occupying 1,100 square metres on Drottninggatan 7, Helsingborg, with a five-year lease agreement with Wihlborgs. The property also accommodates several other healthcare services. (Key Developments)
• Simon Weinberg is set to launch "Bankpalatset," a new restaurant concept, at Jarnvagsgatan 7 in Helsingborg in spring 2026. The landmark Svea building, currently home to Heat Helsingborg, will welcome a diverse culinary hub with various bars and a terrace. (Key Developments)
• NP Innovation will relocate its headquarters and expand production to Wihlborgs' premises at Olsgard 8, Malmö, in December 2025. The five-year lease covers 3,700 square metres and will provide room for further expansion in aquaculture. (Key Developments)
• Wihlborgs has acquired the Snarskogen 2 property in Vala Norra and signed a ten-year lease with Nomo Industrial Automation AB, strengthening their property cluster in the area. At the same time, Wihlborgs has divested two properties in southern Helsingborg to focus on other developments and support city port plans. (Key Developments)
• A Special/Extraordinary Shareholders Meeting of Wihlborgs Fastigheter AB is scheduled for April 22, 2026. (Key Developments)

Valuation Changes

• The discount rate has risen slightly to 9.70 percent from 9.60 percent, indicating a marginally higher risk premium.
• Revenue growth expectations have fallen slightly, now at 5.83 percent compared to the previous 5.90 percent.
• The net profit margin remains virtually unchanged, now at 42.63 percent versus 42.61 percent previously.
• Future P/E ratio estimates have increased marginally to 20.33x from 20.27x.
• Consensus fair value remains steady at SEK 109.6.