Genova Property Group to Buy Remaining 49% of Järngrinden for About SEK 800 Million

Genova Property Group AB has exercised its call options to acquire the remaining 49% of the shares in its consolidated subsidiary Järngrinden for a preliminary purchase price of about SEK 800 million, the company said in its interim report for January–September 2026, published Oct. 23, 2026. Once the stepwise purchase is complete, Genova will own Järngrinden outright.

The report also detailed the first closing of a separate SEK 673 million acquisition of eight properties in the Stockholm region, along with third-quarter earnings, new financial targets and a management appointment.

Genova Property Group Exercises Options on Järngrinden

Genova called the options in September. Completion will occur in two stages of 24.5% each, in the first half of 2027 and the first half of 2029. Payment is scheduled over the period 2027–2030, according to the company.

Järngrinden is a property company with a local presence in western Sweden. It focuses on property management and project development, mainly in logistics, light industrial and residential properties. Genova said Järngrinden has grown substantially since it became part of the Genova group in 2022.

The company said the transaction is expected to strengthen earnings per share over the long term and increase transparency in its property portfolio. In the report, Chief Executive Michael Moschewitz described the purchase as "a natural next step" that strengthens Genova's position in attractive growth regions.

SEK 673 Million Stockholm-Region Portfolio

In July, Genova agreed to acquire eight properties in the Stockholm region from the private property companies Landia and Landera at an underlying property value of SEK 673 million. The portfolio is fully let, with an average remaining lease term of about seven years and tenants in community services, grocery retail, industrial and warehouse uses.

The properties have an annual rental value of SEK 41 million and estimated net operating income of SEK 36 million. Genova put the initial yield at about 6%. The portfolio covers roughly 19,000 square meters, or about 204,500 square feet, implying a price of about SEK 35,400 per square meter, or SEK 328 per square foot. Deferred tax associated with the portfolio is SEK 62 million. Genova said the deal should raise property-management profit per share by about 15%.

Genova took possession of the first seven properties on Sept. 1, 2026. They are located in Värmdö, Tyresö, Nacka and Norrtälje, and include Gustavsberg 1:468 and 1:488, Strömfallet 1, Bo 1:206 and 1:208, and Kornboden 17, 18 and 19. The remaining property is due to close around the 2026/2027 year-end.

Share Component of the Consideration

The acquisition is partly financed with equity. At the first closing, Genova's board approved the transfer of 625,652 repurchased ordinary shares to Landia at SEK 76.72 per share as partial payment, a stated value of about SEK 48 million. The equity component totals about SEK 124 million, through the transfer of repurchased shares and a new issue of ordinary shares, with bank debt and cash covering the balance. Landia's ownership in Genova is expected to rise from 2.8% to about 6.2% after the final closing.

Third-Quarter Results

For the first nine months of 2026, Genova reported rental income of SEK 418 million, up 8% from SEK 386 million a year earlier. Net operating income rose 8% to SEK 310 million, while income from property management was unchanged at SEK 107 million. Income from property management per share rose 16% to SEK 1.82. Profit for the period reached SEK 267 million, up from SEK 144 million, which the company attributed mainly to positive value changes in properties and derivatives.

In the third quarter, rental income rose 12% to SEK 137 million and net operating income increased 11% to SEK 106 million. Income from property management was SEK 36 million, up from SEK 26 million. Long-term net asset value attributable to shareholders increased 9% to SEK 3,684 million, or SEK 79.11 per share. Occupancy rose from 92% to 93% during the quarter. As of Sept. 30, 2026, Genova owned properties valued at about SEK 11.0 billion, along with a significant building-rights portfolio.

Financing, Targets and Management Changes

In August, Genova issued SEK 450 million of green bonds and SEK 250 million of hybrid bonds at an average credit margin of 3.8%. It redeemed SEK 449 million of green bonds and repurchased a further SEK 50 million, which together carried an average credit margin of 4.2%. The company said the transactions strengthen the balance sheet and capital maturity and will positively affect its net financial items.

The board also raised the target for average annual growth in income from property management per share to at least 25% over an economic cycle, from 20%. The target for long-term net asset value per share was changed to at least 15%, from 20%. Risk limits for equity ratio, loan-to-value and interest coverage ratio were left unchanged.

Genova appointed Krister Karlsson as deputy chief executive and member of group management, effective March 2027. He will be responsible for the development of the company's property management and development operations. Karlsson most recently served at Samhällsbyggnadsbolaget i Norden (SBB), where he has been deputy chief executive and head of property management since 2016 and chief operating officer since 2022.

Outlook

Moschewitz said in the report that uncertainty in the external environment has increased recently, with larger movements in the interest rate market and a somewhat more cautious property market. He said Genova remains stable, with good liquidity and a strengthened balance sheet.

Sources

• Genova Property Group, interim report January–September 2026: https://investor.genova.se/pressreleases/genova-property-group-delarsrapport-januari-september-2026