** UBS downgrades Swedish real estate firm Castellum CAST.ST to "neutral" from "buy", as the "market is catching up" to its recent strong run and asset disposals

** The brokerage notes CAST management has largely delivered on debt-reduction and share buybacks, driving a major year-to-date stock re-rating that makes its valuation full

** Says investor focus will now shift towards the management of a EUR 1 billion hybrid bond reset and the use of its asset disposal proceeds

** Warns that operations have remained weak in core exposures like Stockholm and Gothenburg offices, with property vacancies expected to continue increasing

** Raises price target by 3.6% to SEK 145, despite the downgrade, factoring in a special distribution stream funded by the firm's recent property sales

** Out of 16 analysts that cover Castellum, seven rate the stock "strong buy" or "buy", five rate it "hold" and four rate the stock "sell" - data compiled by LSEG