CASTELLUM AB UNSP/ADR - CWQXY STOCK NEWS

Rutger Arnhult has announced his departure as CEO of Castellum, prompting the Board to initiate a search for his replacement. Under his leadership, Castellum's property portfolio expanded significantly, growing from SEK 103 billion in 2020 to SEK 186 billion by Q3 2022, bolstered by strategic acquisitions including Kungsleden, Kielo, and investments in Entra. Arnhult will remain in his position until a successor is appointed. He emphasized the need for new leadership to guide Castellum's future, while expressing confidence in the company's prospects.

Castellum has achieved top rankings in the S&P Corporate Sustainability Assessment for the seventh consecutive year, being the only Nordic property company included in multiple sustainability indices, including the Dow Jones Sustainability Indices and S&P 500 ESG. Out of over 7,500 companies evaluated, Castellum stands out as the sole Nordic property firm recognized. The company aims for complete climate neutrality by 2030 and is currently valued at approximately SEK 186 billion. This recognition emphasizes Castellum's commitment to sustainability and future-proofing its operations.

Castellum AB (publ) held an Extraordinary General Meeting on December 8, 2022, conducted solely through advance voting. The meeting confirmed the Board of Directors will consist of seven members and elected Leiv Synnes as a new member until the end of the next Annual General Meeting. Castellum, a leading Nordic property company, reported a property value of approximately SEK 186 billion as of September 30, 2022, and aims for climate neutrality by 2030. It is also the only Nordic construction company on the Dow Jones Sustainability Index.

Maria Strandberg announced her decision to step down as CFO of Castellum for new opportunities, effective immediately while she assists in the recruitment of her successor. CEO Rutger Arnhult acknowledged her contributions, especially in integrating accounting functions post the Castellum and Kungsleden merger. Castellum, a leading Nordic property company, has a property value of approximately SEK 186 billion and aims to be climate neutral by 2030, being listed on the Dow Jones Sustainability Index.

Castellum AB shareholders will hold an Extraordinary General Meeting on December 8, 2022, voting exclusively through postal methods due to temporary legislation. Shareholders must be registered by November 30, 2022, and submit their voting intentions by December 7, 2022. Proposed items on the agenda include the election of a new Board member and the number of Board members. The proposed new Board member is Leiv Synnes, who will not receive remuneration until the next Annual General Meeting.

On Nov. 15, 2022, Castellum's Board of Directors announced a halt on dividends to safeguard its credit rating amidst a closed bond market. The company will implement a stricter financial policy, increasing the interest coverage ratio to 300% and reducing the loan-to-value ratio to 40%. Additionally, Castellum will cut its investment volume in half for 2023 due to rising material costs and interest rates, focusing only on high-value projects. Despite these challenges, ongoing projects with a rental value of SEK 280 million per year will proceed.

Castellum has commenced construction of a new police station in Hisingen, Gothenburg, on the site of the former Göteborgs-Posten printing office. The facility will cover approximately 9,000 square meters and is projected to be completed by Q2 2025. The police precinct will relocate from Vågmästareplatsen to the new site, which will feature improved accessibility. The investment amounts to approximately SEK 470 million, with a 15-year rental agreement valued at SEK 445 million, achieving a 100% occupancy rate. Castellum is a major property company in the Nordic region.

Castellum reported a positive performance in its interim report for January-September 2022, revealing an income of SEK 6,732 M, a significant increase from SEK 4,437 M in the previous year. Property management income rose by 39% to SEK 3,479 M. However, net income decreased to SEK 6,534 M from SEK 7,064 M, resulting in earnings per share of SEK 19.70. Despite unchanged property values, the company noted strong net lettings for the eleventh consecutive quarter and a healthy occupancy rate of 93.4%.

Castellum has been recognized as the world's most sustainable office developer for the seventh consecutive year, scoring 92 out of 100 points in the Global Real Estate Sustainability Benchmark (GRESB). The company maintained an impressive 99 out of 100 in sustainable project management, ranking second among Swedish property firms and third globally. With a property value of approximately SEK 185 billion, Castellum aims to achieve complete climate neutrality by 2030 and is the only Nordic company on the Dow Jones Sustainability Index.