YEAR-END REPORT January – December 2025

In 2025, Catella demonstrated positive momentum by concluding a transitional year with a robust fourth quarter when adjusting for items affecting comparability. The fourth quarter completes a strong full-year performance, indicating good progress towards creating a more focused and efficient group. With a well-defined direction for profitable growth, Catella is positioned to leverage opportunities as market conditions continue to improve. The divestment of Kaktus Towers marked a significant event of the year, underscoring the company’s strong execution skills.

Following a temporary slowdown in real estate transaction activity during the third quarter, the fourth quarter saw a renewed increase in activity. Consequently, the full year of 2025 was marked by a steady yet slow recovery within the European real estate market. This positive trend has been supported by sustained favourable growth conditions, subject to the stabilisation of long-term interest rates at lower levels. Furthermore, inflation continues to be contained both in the Eurozone and throughout the wider European market, offering additional support amid persistent global uncertainties. In this context, we have concentrated on future-proofing Catella in anticipation of a market likely to present multiple attractive investment opportunities. Our robust financial position allows us to decrease debt and at the same time retain the flexibility to act as opportunities emerge.
 
An important milestone in this process was the successful divestment of the Kaktus Towers project in Copenhagen during the second quarter, which contributed positively to earnings and signified a strategic shift for the Group. As highlighted in the third-quarter report, Catella Group will no longer independently own or develop real estate assets. Accordingly, by year-end 2025, the Principal Investments business area will be integrated into our core operations. Moving forward, the strategy is to focus on profitable property investments in collaboration with third parties, specifically through funds or co-investments where Catella Group maintains a minority stake, thereby
increasing fee generated profits.
 
Further demonstrating our commitment to refining our strategic focus, we completed the divestment of Catella Valuation Advisory France to Newmark Group Inc. during the fourth quarter. This transaction aligns services rendered within our advisory business, while preserving the strong local expertise present in the Corporate Finance business area. Additionally, the consolidation of the front offices of our two German fund management companies into Catella Investment Management GmbH (CIM), effective at the beginning of 2025, exemplifies the strategy to realise synergies in both cost efficiency and capital raising capabilities.
 
During the Autumn we have intensified the focus on aligning key functions with our organisational structure, especially as the majority of our operations are outside Sweden. As part of this initiative, we have appointed two new Group-level leadership roles. The recruitment of Dominik Röhrich as Head of Investment Management, effective March 1, 2026, marks a significant advancement in our ongoing commitment to being a leading investment management platform focused on investor value creation across Europe. Additionally, Daniel Gorosch was appointed Head of Corporate Finance Europe, to support our ambitions for pan-European expansion reflecting our belief in the substantial opportunities within this business area.
 
With the implementation of these strategic changes, whose full effects will be realised in 2026, we look back on a successful year for Catella as well as a European real estate market progressing toward recovery, presenting numerous attractive investment opportunities. We are observing increased market activity, influenced by the stabilising factors previously noted and a continued trend of investors reallocating capital to Europe.
 
In the fourth quarter, we reported an operating profit of SEK 11 million (69). The main reason behind the lower outcome was an impairment of the project development KöTower amounting to SEK 151 million. The impairment was done based on updated assessment of the property value. At the same time, the sale of our Valuation business in France contributed positively with SEK 51 million. Excluding items affecting comparability operating profit amounted to SEK 118 million (82), as a result of stable or increased income across all business areas. These results demonstrate the effectiveness of our ongoing efforts to enhance efficiency and reduce expenses, whilst being focused on value creation for all stakeholders. For the full year, operating profit reached SEK  277 (128) million or SEK 394 million excluding items affecting comparability (156).
 
In the fourth quarter, assets under management (AUM) remained stable adjusted for currency fluctuations. For the full year, AUM demonstrated stability and increased from SEK 155.1 billion to SEK 155.3 billion despite a negative currency headwind from the strengthened Swedish krona over the period. Adjusting for currency effects, AUM grew by 6% to SEK 165 billion.
 
Operating profit for the business area was SEK 46 million, compared to SEK 34 million in the same quarter of the previous year. For the entire year, operating profit for the business area reached SEK 138 million (135).
 
Robust Performance in the Transaction Market
The transaction market exhibited notable strength in the fourth quarter, indicating that the moderate downturn observed in the third quarter was a brief deviation within an otherwise stable long-term recovery.
This positive development contributed to enhanced results for the Corporate Finance business area, with operating profit for the fourth quarter reaching SEK 88 million, compared to SEK 31 million during the same period in 2024. For the full year operating profit totalled SEK 47 million (-17). When excluding the SEK 51 million impact from the sale of Catella Valuation, restructuring costs and last year’s positive bonus reversal of SEK 20 million, the underlying increase amounted to SEK 15 million.
 
Finalising ongoing Projects
As previously indicated, the Principal Investments business area has been incorporated into our broader organisational framework as of 1 January 2026, marking this as the final reporting period for this business area.
During the fourth quarter, our efforts were directed towards concluding projects intended for sale and assessing strategic investments in line with established objectives. With real estate markets now stabilised, we have created a reliable foundation to pursue new, attractive co-investment prospects. This strategy aligns fully with our overarching goals and is underpinned by our strong capital base. By utilising our substantial balance sheet, our intention is to facilitate business expansion while maintaining a focus on quality and risk mitigation.
 
Outlook and Dividend
Looking ahead, we remain confident about the potential for positive growth in 2026. It is anticipated that there will be a sustained, gradual increase in activity within the transaction market, benefiting all areas of our operations. Combined with our strategic aim to operate as a leading pan-European entity within our core areas, it reinforces an optimistic outlook regarding future opportunities. Furthermore, our sound financial position and resilient balance sheet place us in an advantageous position to capitalise on the for Catella Group right opportunities.
 
The Board of Directors has proposed a dividend of 0.90 SEK per share, when adjusting for items affecting comparability, this is in line with the company’s policy of distributing 50 percent of net profit over time to shareholders. Our financial position remains robust following this proposed dividend, enabling continued ability for new value creating investments as they emerge.
 
The entire team at Catella Group would like to extend our sincere appreciation to all colleagues, shareholders, partners, and clients for their contributions throughout the year.

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/51910

Rikke Lykke, Group CEO
Stockholm, Sweden, 17 February 2026