Catella reports Q2 operating profit rise, launches buyback

Swedish property firm Catella disclosed a rise in Q2 operating profit to SEK 8 million, a notable improvement from SEK 43 million compared to the same period last year. The company unveiled a SEK 100 million share buyback plan, repurchasing 2.5 million shares, constituting 2.95% of the total outstanding shares. Corporate Finance revenues expanded by 38% year-over-year, compensating for the decline in Investment Management revenues.

Fixed fees constituted 59% of total revenues, leading to a more stable earnings pattern. Catella discontinued its Property Investment Management business in Sweden, relinquishing its AIFM license, which liberated SEK 20 million in cash and facilitated cost optimizations. The firm reported assets under management of SEK 161 billion for the second quarter.

Catella emphasized that market conditions continue to be volatile due to global uncertainties. The company aims to bolster recurring and predictable revenues and is planning selective investments to foster long-term growth.