Olav Thon Eiendomsselskap ASA

Dear all, and a warm welcome to this presentation of the results for the fourth quarter of 2025 and the year-end results for the whole year. It is nice that you are prioritizing a somewhat boring but interesting presentation. We have a fairly large media picture to compete with. I'm not going to go into what's happening outside the country's borders, but we have an O.L. in Italy where some of the exercises are going on, and we also have a certain price range that has galloped a little now. But I might get back to this, at least the last one. So, the agenda follows a well-known pattern with some share information, a bit of a one-tone, it is new. Financial development, financing and interest development, property portfolio and investments, and macroeconomy. We have a Q&A at the end, and if there are any questions along the way, then just send it to the website, or to the e-mail address that we have given in the call. When it comes to share information, it has been a bit of a special quarter, because the Tom Group, which originally owned 75.5% of the public interest, shortly after Q3, had an intention of presenting a public offer to the shares in the Olatun real estate company. The formal offer was then presented at the beginning of December, and an offer price of SEK 335 was 23% over the last exchange rate, and 6% higher than the highest rate ever. This means that there is no shareholder in the world who has lost money on Olatone if they have not sold on the way. By the end of the supply period on 15 January, the acceptance rate increased by 94.8%. The Tone Group was very clear that since the opening price was over 90%, the right to forcefully release the remaining shareholders, and the Tone Group therefore decided at the end of January to forcefully release the remaining shares in the Olatone real estate company. The Tone Group now owns 100% of the shares, and the shares have been sought for notation from Euronext Oslo Børs, and all shareholders have now received the payment last week. The background for the offer is that the Tone Group has in recent years strengthened the financial capacity significantly, as a result of both solid economic results and a relatively moderate level of investment. Increased ownership and prioritization of Ola Tone real estate was considered a reasonable way to use this capacity on From 2013, the Tone Group is owned by the Tone Foundation, which is established with the following goals, namely to exercise long-term and stable ownership of the Tone Group, and also to distribute oil up to 100 million kroner for general purposes. In the statement to the foundation, it says that the Tone Group will continue to grow, and that growth in the company's capital is an important financial goal. If we then, on a day like this, go back a little to the period when the Olatone company was listed on the stock market, we see that from the listing of the stock market in 1983, the market value of the company has increased from 200 million to 34 billion. This means that the stock market has given an average annual return of about 13-14%. With a price of 335 kroner, which is 6% higher than the all-time high, the buyer, the group, assumes that over several decades, year after year, I have created significant share values, which now, through the offer, all shareholders came to terms with. And when I talk to the group, I have to say that we are very pleased with the reception of the offer and the acceptance rate. which brought the ownership rate up to 95%. This is very good for both the implementation and the results of the offer. What will happen to Ola Tone property company in the future? Tone Group, as a new owner, has offensive plans to develop the company as Norway's largest private property company. The Olatone Group has a large portfolio of interest-related bonds, and therefore the reporting requirement is still lowered. The Søster Group, which is also 100% owned by the Tone Group, has a portfolio that is as large as the Olatone Group's portfolio, but with a significantly lower yield. The Tone Group plans to collect the entire portfolio, which will get a total value of around 125 billion kroner in one company. In the course of the spring, the company's exchange policy will be redefined, and it will also be considered whether the demand for maximum loan in the company's financial policy will be reduced by 45%. If we then turn to the course development, it is naturally affected by the offer. As I mentioned, it was 6% above the previous all-time high. If we look at the last two, three or five years, the share exchange rate has given shareholders a fantastic return. For each period, it has been significantly higher than the main index on the Oslo Stock Exchange. This is one significant reason for us to have achieved such good results in the voluntary offer. The exchange policy and the exchange policy stoop to zero. This is not because the company is defensive, it is the opposite. The earlier exchange policy stipulated that 30-40% of the company's revenue would be divided into exchange. Last year, this amounted to an exchange rate of SEK 736 million. Now that the Tone Group owns 100% of the company, the goal is to develop the Olatone company and allow the company to retain as much capital as possible. The board therefore assumes that in 2025, the ordinary exchange rate for the shareholder will not be paid out. Tone gives room for possibilities, is our slogan, which I think you will hear more about already this March. The tone program we are now implementing is about collecting all parts of the tone under one common mark name, one tone. It's just to sit on the couch, pick up some popcorn and enjoy the beautiful commercials that are coming. 2N gives room for opportunities for everyone. For those who are renting homes, for those who are renting businesses, for those who are renting shopping centers, for those who want to work here. 2N. gives room for opportunities. The company's shopping center is to be gathered under a common brand name, Ton Center. In this picture, we see the first center that is re-profiled, namely Ton Center Borg in Sarsborg. The financial development of the company has been On an old scale, we would say that it is satisfactory. On an old scale, we would say that it is satisfactory. On an old scale, we would say that it is satisfactory. On an old scale, we would say that it is satisfactory. On an old scale, we would say that it is satisfactory. But the result before tax, value changes and the currency was a bit lower than what we had in the same quarter last year, and also a bit lower than what we had in the previous quarter. This is due, in all cases, to equity costs and costs related to the loss of tenants. No drama, but a bit weaker than what we wanted. On the positive side, the interest rate The costs are going down, and the rental income is showing a good development. We have a solid financial foundation here. We have included a decimal that shows that the changes are actually less than what appears in the reports where we round off. For example, the single capital share, which is reduced from 50.8 to 50.2. The loan rate, which is increased from 36.3 to 36.1. It is not a whole percentage point, but it can look like this when we round off. The liquidity reserves amount to 9 billion. And, as I was before, a voluntary offer contributed to an all-time high on the stock market. Operatively, the retail turnover in the shopping centres increased by almost 5% from the fourth quarter last year. The main figures in the quarter, I will of course not go into all the figures here, just note that the rental income, both in the quarter and throughout the year, increased by around 5%, at least throughout the year. We were very close to tanking 4 billion in gross rental income. As mentioned, we see that the interest rates are going down. The result before, tax and value changes over the currency, was also relatively flat, but then there was a slight increase, and we show that the pace is still at a high level. The market value on the units increased to 60.9 billion, and the interest rate for 12 months was also well above 3.3, which we think is a reasonable level, but we hope to be able to get further up with it. The liquidity reserve was 9 billion, and the equity was 33 billion. The exchange rate is therefore no longer so relevant. The rental revenues. We had a rental growth of 5% throughout the year. The organic part of it accounts for 3%. Two new shopping centres, where the share from 50 to 100 is contributed to the rest of the growth. The rental income is also affected by the fact that there are several larger rehabilitated neighbourhoods in Oslo that are waiting for good and solid tenants. We must almost only use a word that the Norwegian Bank and all macro-analysts use now. We do not have speed. We also do not have the speed to rent out those areas. We are waiting for good tenants who appreciate these new properties. This has meant that we have increased the liquidity in the energy portfolio, and it has increased to 5.2% by the end of the year. The reason to ignore the fact that there are quarterly variations in the income, and there is a certain gap between the segments, so one must not be blind to the proximity of the shopping center. There may be a slight gap between the segments. Then we move on to financing and interest development. This is, I would say, a solar energy story. And the financial policy confirms these strong and stable key figures, which defends a very good rating. BA2 with positive outlook from Moody's. I'm not going to go into the individual elements here, but the rating was confirmed in October 2025, and we'll see what happens with it in the future. We have at least received positive signals that the purchase is profitable for the company, not least because we are reducing the exchange rate and that we will eventually become a slightly larger shareholder. In terms of interest rate development, we have received an interest rate that is below 0.6 from last year's shift. The reason for this is that we have increased the proportion of short-term certificate loans and that the new-age interest rate has fallen accordingly. In relation to the top-notation, we are now 1% lower than the average interest rate two years ago. We see positive financing markets, or perhaps ill-willed financing markets, also in the fourth quarter, which has continued into the first quarter of this year. And we see that the share in the bond market is increasing, and we are at prices there that we have seen a while ago. And that is both a good willing to lend us money, and also to lower prices, and that also applies to banks. We are still concerned about having a balanced portfolio, and if we look at what is not tight, including unused credit frames, we see that the banking market still stands for almost 40% of the financing frames. As I said, we have significant liquidity reserves, and they are suitable to cover interest rates until March 2028, so in two years. As I mentioned, we have introduced new financing agreements in the fourth quarter, which are at a fairly high level, both in the capital market and in the banking market. We will now look at what we are living off, namely the property portfolio and investments. If we divide it, the shopping centre is still within the top 20. It is the largest market segment of ours, and it accounts for 57% of the shopping centre value. Other than that, than a slightly divided portfolio with a number of quality properties in Oslo, which is included in that list. To start with the shopping centre, we have a nice picture of Lagunen Storsenter, which was reopened in November. We have 56 centres in Norway and Sweden. The rental market value is 47.5 billion, and the rental income level is 3.55. We have 5 of Norway's top 7 and 11 of the top 20. The yield is unchanged from last year, and as I mentioned, the store turnover showed a positive and nice development. This is an overview that I have taken out some times, which I now want to take a little deeper into, because it is a light gray color. Look closely at this. I have deliberately placed the colors in a little light, The really studying eye can see that the light grey is owned by the LaTone subsidiary. The slightly darker grey is owned by Tone Holding. And Tone Holding, which is now 100% the sister subsidiary, with an even greater agreement, stands for two of the country's ten largest. This means that Tone Center will have seven of the country's ten largest, and in all fairness, we call ourselves Norway's leading purchasing sector. We are the leading business sector within the business sector in the Oslo area, with 65 companies. The value has increased by 900 million through 2025, and the loan level has also increased by 80 million. We have about 500 rented houses, and within this segment, the interest rate has increased somewhat. This may also be due to the fact that we have purchased some new properties that are growing. We have an investment strategy that is still defined with the good old words from 1983, that we will acquire, develop and own. The investments are exclusive to purchase and purchase projects during implementation. In the last eight years, we have invested 12 billion. Last year it was 2.2. That was a relatively high number. And in the fourth quarter, we invested 700 billion. From larger investments towards the end of the year, we can mention Storgata 57, which is 6500 m2, with a trading office in the center of Oslo. It borders on a number of other properties that the group has, and will also be able to make it possible to develop what is called a delict route through the backyard in Storgata up to Torgata. This is going to be a strange part of the city, so just look forward to it. In addition, Lagoon Storkenter, where we only own 42%, has been expanded by 17,500 square meters. Kopgården on Stortorvet 2 is a strange property with a facade facing both Karl Johan, Kirkegaten and Stortorvet. The areas are now completed in the third quarter, and we are just waiting for good customers, so that we can put a price on such availability and standard. Of larger projects that are under implementation, we rehabilitate the shopping center in Gustavsand, Sandens. We have a housing project, Heggedal Hage in Asker, where sales go evenly and tired. Completed in 2027. We are expanding on Gjessheim Storkjente, a new building of 2,200 square meters and parking lots. And not least, Vika Atrum, where we have completed most of it. But it will only be completed when, if not when, it is rented out in 2026, so that the owners can get their exclusive equipment according to their own taste. Macro-economy is always an exciting area. And these are the latest forecasts from Norwegian Bank in December. Find one error, find one error already. The Consumption Price Index for 2026 is forecasted down to 2.4 with today's figures, which seems to be higher than the prognosis, then that prognosis is a bit optimistic. Nevertheless, the main numbers are positive, with unemployment carefully 2.2%, wage growth also down. It will be interesting to see how it will be if the price rise does not come down as a spud. Private consumption is expected to go down, and so is the government's interest rate. The income prognosis from December was the statement that there is still a need for an inflating monetary policy to bring inflation to the target. The prognosis shows that it is most likely that the income will settle 1 or 2 times in 2026. There is uncertainty about the economic outlook in the future, it says. and price growth could change the prognoses. Higher price growth means the need for higher interest rates and lower price growth, or a weaker working market, then interest rates could be put down faster than predicted. What we always see is that the macro numbers are swinging. There is probably more than one macroeconomist who in the future thinks that it can be a bit too quick to conclude with strong adjectives. It's about breathing with your stomach and seeing what happens next. It is not entirely obvious that all interest rates have been reduced due to a number of consumer prices. Even though the main comment is, of course, that it was a little too late to buy a low interest rate, we probably do not share the concept that the Norwegian Bank has gotten into trust and so on. These are of course not concepts that we use so much in our formal communication. To summarize, we see that the growth in the economy from the left is quite low. Despite the fact that the unemployment rate increased somewhat last year, it is expected to be low in the future. It is expected that the wage growth will be reduced, but that it will still be higher than the price index, so that we will have a real wage increase. This is of course positive for the shopping centres and the private sector. Despite the fact that the price growth has dropped since 2023, it is still higher, and now perhaps significantly higher, than the inflation target. In recent months, the price growth has been somewhat in line with the Norwegian bank, but the deviation came today. Remember that for the iron industry, inflation is not undeniably negative. In September, the bank cut down from 4.25 to 4.00, but it was unchanged. They are now signaling that it will be lowered 1.00 to 2.00 times in 2026. Maybe then we will keep it at 1.00. Olatone Egnshøyskap skal leve godt både med uendret rente og rente opp og rente ned. Vi mener at konsernets solide markedsposition og finansielle stilling vil bidra til en fortsatt god operativ resultatutvikling i tiden fremover. På tross av et relativt høyt rentenivå, som vi mener det er, og betydelig makroøkonomisk usikkerhet. Da tror jeg vi er kommet frem til... Eventuelle spørsmål, hvis det er kommet inn? Det er ikke kommet inn spørsmål så langt. Da må vi tolke det som en usett vanlig, kristallklar presentasjon. Da vil jeg bare ønske alle tilhørerne en vidunderlig vinterdag, der hvor dere befinner dere. Ta på dere lue og skjerf, for det er kaldt ute. Så ses vi snart. Takk for meg.