Lumos Pharma, Inc.

Welcome to LUMO Homes Q1 Result Webcast. I am Niina Saarto, Treasury and Investor Relations Director. Today we'll present you first quarter's figures and we will also give an update on the acquisition of nearly 4,800 apartments, which we completed after the review period on 1st of April. CEO Reima Rytsöla starts the presentation and then CFO Erik Hjelt will continue. In the Q&A, we will open the phone lines for questions. We also take questions via chat. So all is said, gentlemen, now it's your turn.

Thank you, Nina. And a very good morning on behalf of myself as well. And welcome to this inaugural LUMO Homes PLC Interim Report. So fantastic to be here under this LUMO brand. Going a little bit through our first quarter results and we have shared with the CFO Erik Hjeltsson that Erik will go more thoroughly into the figures and I will have a kind of an overview of the market conditions and overall situation. But all in all, our like-for-like rental income grew and occupancy rate improved from previous year and that was a kind of, I would say, consistent development for us. Even though the total revenue and net rental income decreased, and that was mainly due to the sale of a portfolio of approximately 2,000 apartments, which was closing in last July. We had especially the people who are living in Finland remember that we had the extraordinary cold January, February here in Finland and that affected our FFO as well which declined due to that cold weather and of course the revenue decline as well. Our liquidity position remained very good and our balance sheet is strong and loan-to-value improved and came down to 42.5%. The market situation, I will come back in a minute. We also published our strategy and we had our capital markets day in March where we released our new strategy and where the customer experience is in the core of our strategy. and happy to notice that even though it's early days but already now we hit the record high in NPS at 60 this quarter so going to the right direction although having said that it's early days and of course the NPS figure might show some volatility but at least promising start in a sense that strategy start to work and we have already took a lot of measures to kind of improve our capabilities to focus on customer experience. And a big part of that was, of course, as I said, that this is an inaugural interim report for LUMO Homes PLC. So a big part of the new strategy is also the brand change that we will operate under the name of LUMO Homes PLC and an annual general meeting kind of approved that proposal in last March. And as Nina told already, so I will give a glance of acquisition that we bought 4,761 apartments and that deal was closed right after the review period on 1st of April. I give some glance of what are the first takeouts after a little bit over one month of owning those apartments. The market environment or operating environment has stayed muted. Of course, there's a lot of volatility in global economy and not the least because of the Iran war and through that rising interest rates. The last year already was in Finnish GDP growth close to zero. At the moment, the different offices expect GDP growth to 1%. We had in a very promising period pre-GDP figure from Q1, which was 0.9, statistics of Finland, but it remains to be seen what's the kind of final figure, but it was kind of a promising sign anyhow. When talking about the rental apartments and oversupply of rental apartments, we still face oversupply and the market conditions haven't improved significantly yet. Although having said that, we kind of repeat ourselves that that in a medium and long term, the outlook looks very promising. And the main reason is that the new startups for residentials are coming down even higher. more rapid pace than anticipated and the current estimate or forecast is even lower for this year than it was previous year and the Confederation of Finnish Construction Industries just revised their forecast to 15,000 apartments and my personal view is that we won't even reach that and the main reason is that actually the the subsidized part of new startups will probably be even lower than in this forecast, which was 11,600 apartments. And the main reason is that actually the math is not working at the moment for starting new startups, and especially now when there's still oversupply, but also the The current price level for existing apartments are much lower than the new buildings, so that's the main reason. Although combined with the kind of very low level of a new startup, so still the urbanization carries on and the population is growing all the time in biggest cities in Finland. So that's why we are confident of a medium and long-term outlook on supply and demand balance. I won't clean the table for the figures, so I'll let Erik to go through the figures more thoroughly. Just one word that our carbon neutral target is well in line and intact and we are ahead of our plan and reaching the carbon neutrality by apartment in 2030. This is, of course, one key component for us for cost efficiency as well. And that's why it's kind of a double-sided, so to say, the target. So it's beneficiary, of course, for climate change as such, but also for our profitability. And then about the acquisition, as I said, that we acquired the 4,761 apartments from Varma Mutual Pension Insurance Company, and that deal closed right after the review period, so 1st of April. So we have roughly... lived over one month behind us now that owning those apartments and the start has been very promising as you remember the occupancy rate of the portfolio was very low, 83 on the time of signing and And we said that we are confident that we are able to rise that occupancy rate to our kind of a stabilized level. And at the moment, the kind of a first month of April looks very promising and even above our expectations. So the lease-up plan is progressing very well. Also, the kind of a... overall the takeover has gone very smoothly so I would like to here also thank our own people that they have worked very hard and this is a big portfolio to acquire so it has so far went very smoothly and the The lease-up plan has progressed really well, so we are even more confident on the signing of this deal that we are able to raise the occupancy to more of a stabilized level. I think this was all in my first stint, so as Nina said, we are ready to answer the questions after Erik's financial development and outlook part, so I ask Erik to join on the stage.

Thank you, Reema, and good morning, everybody, from my side as well. So page 11 told the revenue side, so it declined 3.5 million euros from the corresponding period, but it's good to keep in mind that in July 2025, we disposed almost 2,000 apartments And those old apartments actually contributed 5.4 million euros for the top line last year. So if you exclude that, so actually the top line growth was 1.9 million euros. And main contributor there was improved occupancy. Net rental income came down by 2.9 million euros. Of course, the total revenue plays their role. Repairs came down by 0.6 million euros. And despite a slightly smaller portfolio, the maintenance expenses moved sideways. And main reason there is actually the heating costs or the Winter was very harsh here in Finland, and the heating expenses was 2.4 million euros more compared to Q1 last year. On the positive side, cleaning and outdoor maintenance came down by 0.8 million euros, and property taxes down by 0.6 million euros. Page 12, on the right-hand side, FFO down by €2.1 million. Of course, net rental income plays a role there as well. So, SG expenses increased €1.1 million. Finance expenses came down by €0.3 million, mainly because of the smaller... loan portfolio. And it's good to keep in mind that the closing of the big acquisition was first of April, so it has no impact in any of our figures during Q1 this year. And current taxes came down by 0.8 million euros. Occupancy rate improved from previous year. Q1 figure, year-to-date figure is of course in Q1 the same, so 95.6%, and it's up by 2.8 percentage points from Q1 last year. Tenant turnover slightly up by 0.6 percentage points. We saw very strong like-for-like rental income growth, mainly driven by the improved occupancy, very strong figure there, so 4.3%. Impact of the rental water charges, negative side, 1.1%. We are still increasing the rents for existing tenants. At the moment, the monthly increases are on average between 1.4% and 1.5%. and we are still flexible in rents which come to the vacant apartments, and that flexibility brings the impact of rents and water charges on a negative territory. Altogether, luck for luck, rental growth very strong, 3.2%. Investments were on a low level in the first quarter. We had one ongoing development project, 119 apartments, that was completed in February, located in Helsinki. And modernization investments increased from a comparison period, because we started a few larger modernization investment projects. We sold during the first quarter 166 apartments and of course after the period we completed acquisition almost 4,800 apartments. Modernization investments up by 2.5% because of this couple of bigger modernization investment project we started. Fair value of investment properties down by 42.6 million euros. We didn't change any valuation parameters in Q1 valuation. There was four transactions during Q1, including ours, and all these are taken into account in our valuation in Q1. And the main reason for the negative impact of the valuation was due to the change in calculation parameters as properties age. So that's embedded in our model, our valuation model. The change in year requirement is based on age of the property. So when the property turns 16 years or 30 years after completion or renovation, we increased the yield requirement by 12.5%. And that was the main reason for the value change in Q1. there was unusually amount of aging properties. Most of these properties that we changed the yield requirement because of the aging was assets turned to 16 years old. Remaining part of this year we anticipate no major impact because of this aging question. So page 17, loan-to-value strong, 42.5, well in line with our new target to keep our loan-to-value below 45%, so there's quite a sizable buffer against that level, and equity ratio quite stable as well. On page 18, our financial position remains strong. After the reporting period, we signed a €600 million acquisition finance related to the portfolio acquisition, and the idea there is to refinance that with debt from the capital markets. In March we paid back the remaining part of the 2026 maturing bond, 135 million euros, and now the 2026 maturing loans are already covered, or paid back actually, and now the focus is to refinance 2027 maturing loans, and we will address that at some point during this year. Financial key figures remain strong, so hedging ratio very high, 96%, average interest rate 3.3%, and coverage ratio excluding repair expenses as our PSI are calculating this, so 2.6%. key figures per share remain strong, no major changes there, so NTA pretty much in line with the previous figures, and the same goes with equity per share. As we revised our strategy, we released our new financial targets for 2026 to 2028. We have four cornerstones, if you like, there. So growth, customer satisfaction, profitability, and risk management. And the growth, the target is to grow 5-7% annual customer satisfaction to have net promoter score about 65%, profitability average annual growth FFO per share 3.5% and loan-to-value to keep below 45%. Now we have the figures for net promoter score and loan-to-value, because growth and profitability figures are annual figures, so we didn't calculate it linked to this Q1 report. Of course, the whole year figures will be included when we are there. Then page 21, our outlook. We kept our outlook unchanged. So we estimate that the total revenue will amount between 484 to 497 million euros and an FFO between 147 to 157 million euros. If you look at the midpoint of the top line growth guidance, so there we penciled in slightly improvement in occupancy, moderate trend increases, and flexibility in new rents, but reducing amount compared to last year and beginning of this year, and then successful implementation of the acquired portfolio, and we are proceeding well there, as Reimo already discussed. Then if you look the FFO guidance, so that, of course, the range reflects the top line outlook there. And if you take the midpoint of the FFO guidance, so there we assume the average weather and then the cost of refinancing on a constructive level. And now back to Reima.

Q&A. Let's start with the audience question.

Thank you for the presentation first. Timo Nyman from Nordea Bank. I was just wondering the occupancy rate, considering that you took over the Varma portfolio with a relatively low occupancy. You have still been able to improve the occupancy. Does that go hand in hand with lots of incentives, or how did you manage that one?

You mean the Varma acquired portfolio? I think it was very much in line with the business case that we calculated with the rent levels, and we calculated some. We noticed that there was some kind of overpricing in the portfolio, which partly explained the kind of very low occupancy rate. But it's well in line with our business case plan, the rent levels.

Thank you. So now we can move on to phone line questions.

To ask a question, please dial pound key 5 on your telephone keypad. To enter the queue, if you wish to withdraw your question, please dial pound key 6 on your telephone keypad. The next question comes from Anzi Rossi from SEB. Please go ahead.

Yes, hi all. It's Anzi Rossi from SEB. Thank you for the presentation. I have three questions and I go one by one. First, I continue on occupancy. So if we exclude this warm acquisition, occupancy came down a bit, quarter over quarter. So how much of this decline was maybe due to seasonality and how much due to underlying market conditions? That's the first one.

Thanks. Okay, if I take that. So it's... it's of course very difficult to kind of, uh, make the divide or divide those components. But, uh, but, uh, I think I would, I would say that it's, uh, it's for sure that, uh, there's a true seasonal effect on, on first quarter. So I would say that the, the kind of, uh, uh, tiny decline from a quarter to quarter is, is, is, uh, is mainly of, uh, uh, of, uh, of a seasonal effect. So, so as I said, that, uh, that market conditions seem not to have improved. But I think it's as fair to say that the market conditions haven't worsened either. So in that sense, I think it's mainly kind of a seasonal effect.

Thanks. That's helpful. And then about your refinancing this year. So have you changed your plans in terms of timing or are these initial plans still in place?

So we, of course, monitor the market very carefully and try to figure out whether this is special circumstances in the short term. But definitely we want to approach the refinancing of 2027 maturing loans. We can tap the market even before the summer, or we can postpone it after the summer, depending on the market conditions.

Adi, thanks. And finally on your possible discussions with credit traders. So have you had any discussions or of course you're maybe planning to have at some point because we know what has happened in geopolitical situation and interest rates have gone up. So any changes on this situation?

We have set a management meeting with Moody's in August, and we discussed with Moody's several occasions when we prepared ourselves for the acquisition, so they were well informed and they knew our plans there. So since that, the normal liquidity discussions, but other than that, we haven't lately discussed with Moody's.

Okay, thank you.

The next question comes from Jonathan Conator from GS. Please go ahead.

Good morning. I just wanted to follow up on the cold winter. Do you see any risk to your guidance of being towards the lower end of the guidance? Was that more than you expected at the beginning of the year? And again, to go back to the occupancy question, I think generally speaking, what are you expecting later in the year and what was What is your view on pricing as well? There was obviously a negative impact on pricing in your life like rent growth. How do you expect to move your pricing going forward this year and what do you expect it to be the impact on occupancy? Thank you.

If I take the occupancy view, you can then have an answer on the first one. But we actually expect the occupancy to improve going further this year, and we need to stay... flexible over pricing but as Eric already said during the first quarter so we see that there's less need in the future to be as flexible on pricing for new tenants and as Eric already communicated so we have been We have already risen the existing tenants' rents from 1.4% to 1.5%. Of course, this is not the whole stock, but it's kind of a rolling process. So, all in all, we kind of stay optimistic of the occupancy rate. And of course, we think that we have room to improve occupancy also in our legacy portfolio, but especially when combining the new portfolio where there's a lot of potential to improve the occupancy. So in both sides, we expect to improve the occupancy.

When it comes to the impact of the heating cost, of course, that's on the negative side. But when you look at our outlook, there are still many, many moving pieces there. So we estimated what is going to be the remaining part of this year. This year, we don't know the weather factor, of course. And on the positive side, there's some savings we achieved already. And then the acquired portfolio occupancy has been quite strong starting from leasing up. That, of course, on the positive side. And then the question mark is when we do the refinancing and what is the price for refinancing. So there's... many moving pieces still and and we didn't find any reason to to change the outlook at this at this stage okay thank you the next question comes from andre's tomb from green street please go ahead hi good morning so a couple questions from my end

Firstly, could you maybe give some more color just around how the sort of the rental market is trending in terms of how in the last few months the stock of advertised apartments in the whole market has been trending? Is it still going down or has there been some hiccups just also looking how the occupancy has trended recently?

Well, I would say that the market supply hasn't come down so far. Of course, as we discussed already earlier, that there's definitely a kind of a seasonal effect as well, and that seasonal effect will... will turn on on landlord's favor in in coming months so so so that that that's for sure so so we and but we are not kind of a guessing that that that how how how will the seasonally adjusted supply will will will react in coming quarters. But as I said in the very beginning, so we are confident that that will ease up in a medium term.

Understood. And then on the Varma portfolio, just wondering just how that portfolio is placed and could there be any cannibalization to your own existing Lumo stock as you start ramping up warmer occupancy with maybe a bit more aggressive pricing?

I think it's, if you can see now here, so the split of a breakdown of an acquired portfolio is 75% in Helsinki region and Tampere region, close to 18%, and Turku region 4.2%. So it's very well located. We don't see kind of a meaningful cannibalization effect or threat. As such, so at the moment it looks like so that the asset is, as we already were convinced and when we released the deal that after our DD process that we like the asset pool very much and it has been kind of verified already in the first weeks when owning the apartment. So there's definitely a demand for that. And given the fact that still our overall market share is relatively limited, so we don't see kind of a significant or meaningful cannibalization threat in that sense.

Okay, and then finally, just on the refinancing side as well, you sort of, Eric, you sort of mentioned that you have a sort of an assumption for your cost of debt there. How is the cost of debt right now in the marketplace versus that assumption? Is it higher and what are the sort of spreads you're talking about here?

In big picture, it's in line.

It's in line? Okay. In line, yeah. And then maybe finally, just on the guidance as well for this year, I guess, not putting words in your mouth, but it sounded like revenue, you see good odds of getting to the midpoint, but maybe on FFO, just because it's been a more difficult winter in Q1 and maybe the financing costs have gone up this year, it could be lower than the midpoint.

Yeah, it's your assumption. So the building blocks are, of course, there. So the top-line growth is proceeding nicely so far. And on the expensive side, some savings can be achieved. And, of course, the cost of refinancing plays a role there. It's too early. I said there's so many moving pieces. It's too early to say in which position in that range we are going to land. But these are the building blocks, if you like.

But we appreciate, Jonathan, your four words that you don't try to put words in our mouth.

Thank you.

The next question comes from Celine Sue Wynn from Barclays. Please go ahead.

Hello, Rayma. I've got two questions for you. The first one is on tenant retention. So remember, we've talked about tenant retention at UCMD, and I'm noticing that your tenant turnover ratio has gone up. So if you could please comment on this number. And second question is about your guidance. I'll follow up on the previous question. The Q&A results are quite below expectations. So how confident are you on your guidance? Should we expect SFO to be more on the lower end than on the higher end? Thank you.

Yeah, I think it's the latter one, I would say immediately, kind of a repeat Eric's answer already. So there's many moving points and we won't give you kind of a guidance for guidance, so to say, or kind of specify more of the guidance. So that wouldn't make sense at this point. But then on the churn of tenants, so that's correct that it has increased a little bit, but I would say that it's more linked to the seasonal effect as such than anything else. So not being super worried about that at this moment.

Okay, sorry, can I follow up on your point about the guidance? I'll put it in other words, is there a risk that you might miss this guidance?

No, we released our guidance. So I think it tells that we are with our best knowledge of our future, which is, of course, limited in our side as well, but with our best knowledge. So we are kind of confident that we will stay in the band of guidance.

Okay, thank you.

Thank you.

The next question comes from Stephanie Dossmann from Jefferies. Please go ahead.

Hello, good morning all. I was just trying to reconcile the FFO in EuroMillion and the per share basis. Am I right saying that the FFO per share degrees by something like 6.4%? And is there a reason that you don't guide on the per share basis for the full year and What's your expectations? I know it's hard for you to reply to this because of the previous questions about the guidance, but that would be good to have per share guidance as well. Maybe this will be the first question. I have a couple of others.

Yeah, so we discussed internally whether we should give the guidance total FFO, FFO per share. And we felt that the total FFO is quite prudent. And of course, we released the amount of shares, so... Of course, it depends on whether we ask you guys to do the math or do we do it for you, because we don't anticipate any changes in amount of shares, so it's pretty much quite easy to calculate that. So that's why we felt that FFO, as we've been giving the guidance in history as well, total FFO, so we felt that we keep giving guidance in that form.

Fair enough, but in your disclosures, it's a bit misleading to see that the FFO per share is flat in Q1 while it's down mid-single digits. So that was my point. The second question is much related to the modernization capex. So you launched a modernization program last year. We see the impact in Q1. What would be the impact for the full year, please?

So we estimate that the full year amortization investment is going to be somewhere between 30 and 40 million euros.

Thank you. And maybe a last one regarding, you said math don't work for new builds. And could you quantify the spread between new builds and existing homes? And I suspect you would not launch new development anytime soon due to the market oversupply. But I just wanted to clarify your strategy going forward on that, please.

I would say that, of course, it's difficult to give a precise figure, but in a range of 15% to 20%, it's more expensive to start new buildups. It's 15% to 20% more expensive than the existing ones. And your question or assumption that we are not going to start a new build-up, so definitely not in a meaningful scale. Of course, there might be some kind of a... single individual cases where there's, for example, some kind of additional construction or building rights that needs to be utilized or something like that. But apart from that, not any major new developments.

Thank you. The next question comes from Neeraj Kumar from Barclays. Please go ahead.

Good morning, everyone. A few questions on my side. So starting with your LTV, you mentioned that you have a sizable buffer to the LTV threshold of 45%. But may I confirm that this reported number of 42.5% is excluding the recent acquisition, which has 600 million debt associated with it. So how much buffer do you have if you were to include that transaction and how well you're positioned for a potential valuation decline? So that would be my first question.

So we made a pro forma calculation when we prepared ourselves for the acquisition. And based on that pro forma, we should be still below 45%. And that's our long-term target, and we want to definitely be below 45%, but it's good to keep in mind that From Moody's B882 threshold is 50%, five zero percent. So we have even bigger buffer for that level. But I said, our target is to be below 45.

Sorry, because I was just adding the current transaction and the number I reached was 45.1%. So it looks like you're bang on 45%. So if there was to be any valuation decline, you are kind of breaching your internal threshold.

In that sense, yes, but we don't anticipate that, and we are not giving any guidance for future value changes. Of course, given the dividend policy, a big portion of the FFO is left inside the company, and we can use that. to pay back loans, so there's a path to bring down the loan-to-value without any actions, and then it remains to be seen where the value goes in the future.

Got it. That makes sense. Also, you mentioned that you have a strong liquidity position. Again, may I confirm that the 750 million debt maturing in 2027 is excluding that 600 million bridge loan, so you have nearly 1.5 billion of debt maturing by end of next year? Correct.

And our plan is to approach the refinancing this year, obviously, and perhaps even some part before the summer and some part after the summer. But that's something... that we are considering and in our case it's good to keep in mind that we have access for different sources of financing so the bond market is there and it's open and indications are well in line what our expectations are today and we have access of bank financing as well and we've been discussing with the banks to look at their portions there as well. So we are confident that we are able to refinance our needs what we have.

You mentioned that the bond market is open. I was looking at your current six-year bond, which is trading at a yield of over 4.3%. Is that the kind of refinancing you're using in your assumptions when you're providing a guidance on your FFO, or are you using a bit lower number than that?

So we looked at the different indications and of course the tricky part is that today it's something else and it's tomorrow and it was yesterday, but in our calculations we penciled in a coupon slightly north of 4%.

North of 4%, that's helpful. And just an associated question with it, how do you see the impact of this on your ICR going forward given material debt maturities in the next couple of years? You mentioned about Moody's. So the ICR at Moody's was 2.28 for full year 2025. That's much lower than their downgrade threshold of two and a half times. And given the recent increase in interest rates and material refinancing needs, do you see a risk of negative rating action from Moody's in future?

So, of course, we've been discussing with the Moody's, the matrix and ICR is one important KPI there, but it's not the only one. And actually, they are not today looking at one or two specific KPIs and they replace them. the ICR requirement, and now they are talking about financing strategy, and they take into account in their view all factors. And in our case, they communicated clearly that all other KPIs in our case is strong, and the only one that is slightly under pressure is ICR. And taking all the actions by the company, they estimate that the ICR will go below 2.5, but they start to improve afterwards. And they say that that's fine. Of course, they can change their view, but this was the latest discussion with Moody's.

Got it. That's very helpful. Thank you very much.

The next question comes from Alex Kolsteren from Van Lanchet Kempen. Please go ahead.

Hi, Tim. Good morning. A couple of questions at this point. Maybe first on the Varna portfolio, you commented that the leasing is progressing really well. Could you quantify that a bit more?

Actually, we are not willing to quantify it anymore, but try to kind of give you an impression with the qualitative measure that, as you said, it's progressing very well and even above our expectations. So we, of course, can quantify the figures then after the Q2. in Q2 release, but at the moment we stay on qualitative measures.

All right, understood. Then on your reported disposals in Q1, is it correct to assume you sold at an 8% discount to the book value?

In a pullback, yes.

All right, thank you. And lastly, it's been discussed a bit already at the seasonality, which you commented on, If I look back into Q3, Q4 numbers, they say that typically, let's say towards the end of the year is when the seasonality effect is worst on your occupancy. And now you say it's Q1. So what has led to the change?

Well, I think it hasn't changed that much. The exception was beginning of 25, where our actual occupancy was higher in Q1 than Q4 at 24. But apart from that, the Q1s have been a bit lower than Q4s. All right, very good.

Thank you very much.

As a reminder, if you wish to ask a question, please dial pound key five on your telephone keypad. The next question comes from Anzi Rossi from SEB. Please go ahead.

Yes, it's Anzi from SEB again. One follow-up from me. I think you mentioned that you're increasing your rent from 1.4 to maybe 1.5% for your existing tenants, but I guess you're still facing quite significant pressure to keep your rent unchanged for new tenants or even declining year over year. So how do you manage this spread? And I guess you might be receiving some angry feedback from existing tenants. So how long you can continue increasing your rents for existing tenants without the inflation in new tenant rent?

Yeah, you're right that of course it can't continue from here to eternity, so that's for sure. So it requires that marketing improves. We already see that the kind of, how would I say, the... amount of flexibility when pricing the new tenants are decreasing at the moment so that's very kind of encouraging in a sense but as you mentioned that if they are going to kind of two different directions the existing and new tenants rent so it can't carry on for a very long time but at the moment we are I think I would say that we are managing the issue fairly well and it's of course in some cases you might receive feedback but on the other hand it's as we all know that it's a bit of a cumbersome to move as well so you might if you are happy with your if you have a good customer experience as such so So you're willing to accept a bit higher rent than moving to a different location.

One additional note, if I may. So this 1.4, 1.5 is average, the whole portfolio. And we look, of course, how much we increase the rent for existing tenants, property by property and apartment by apartment. And already, for example, in Tampere, the rent increases are between 2% and 3%. And in some sub-areas in Helsinki, zero, because of the very reason that the sub-area, they are not the same. And that, of course, plays an important role in how much we are able to increase the rents compared to what we do with vacant apartments.

And that's really helpful. Thank you.

The next question comes from Alex Kolsteren from Van Lanchet Kempen. Please go ahead.

Yes, one follow-up question actually on the disposals on that 8% discount. Is that reflective of your wider portfolio in your view?

Actually, no. So all transactions from the market Q1 and all our own transactions taken into account in the valuation. And the valuation is made property by property. And these two were well in line with what is our valuation. So no impact in our valuation.

All right. Thank you very much.

There are no more questions at this time, so I hand the conference back to the speakers. Thank you.

I think we covered so many topics. We only have one left, so it's about the transaction market. So have you seen that there would be a lot of interest from international investors who are actively seeking portfolios in Finland?

Well, there are some foreign interests, and it has somewhat picked up, at least in the very beginning of the year. Of course, at the moment, due to the fact that there's a clear uncertainty of the interest rate market as such, so that has probably cooled down the transaction market as well. But we definitely have seen during the first quarter already the kind of picking up the foreign investor interests and coming back to transaction markets and perhaps related to the last question as well. So we have seen in kind of a... Some transactions on the market, portfolio transactions, which yield requirements have been kind of encouraging as such. So, for example, much lower than the one that we released from our acquisition of 4,761 apartments yield requirements. So that's why it seems so that it's getting healthier, the transaction market.

Okay, thank you. That was the very last question. So thank you everyone for joining us today. We will publish our half-year result on August 13th, so hope to see you all then. Thank you very much and have a lovely spring.

And maybe, Erik, this was your last interim report.

Maybe you would like to... Yeah, this was my last interim report and more than 60 altogether on my belt right now. So I really want to thank you all guys participating in these calls and in meetings. And it has been great to work with you and good discussions, good dialogue. So thank you very much for all these years and meetings. Thank you.

Bye-bye.