Annehem Fastigheter AB

Welcome. Anaheim authorities have released a report this morning. To put some color on the numbers, I have Monica Falenius and CFO Adela Chulakovich in the studio. You who are watching are welcome to ask questions in the chat so we will try to raise as many of them as possible. Monica Falenius, welcome. Thank you very much. A little mixed result. What is it that characterizes this quarter?

Yes, it's a bit mixed. I agree. We have increased rental revenues, which is exciting. We can feel that we have some challenges in Finland, which also weigh the result for us. But on the other hand, we have a very strong property business in Sweden that weighs up a bit.

Thank you very much. Then you and Adela will be able to present and I'll be back for a little question time.

See you. Thank you very much. Welcome to the presentation of our quarterly report Q1 for 2025. I will briefly tell you about the company, for those of you who have not heard much about us before. We will then summarize the quarter. I will also cover our climate book for 2024. As Michael said, we end with questions and answers. Annehem was listed in December 2020 at Nasdaq Stockholm, so we have now spent four years as a listed company. We own, manage and develop modern properties with a high sustainability profile in the growth areas in the north. On the side of these modern properties, we also own two company parks in Skåne. These are older properties, but we have large land areas here and we also have development potential. Today we are located in Stockholm, Skåne, Gothenburg and Helsingfors. Our main location is an office where 72% of the rent comes from. Then we have income from social sectors at about 11%. Today we own 28 properties and the entire area is 215,000 square meters. We have an ambitious vision that shows the way for us in decisions, big as small, and it is also a mark to our customers that sustainability is important to us. We also have high sustainability figures where 85% of our property value is sustainable according to the EU taxonomy regulation and the entire 83% of our property value is environmentally certified. If we look back at the report, we had a real estate value of 3.3 billion SEK. Since the start, we have grown by 55%. At the start of quarter one, we have a real estate value of 5.1 billion SEK. And we will continue to grow. We have a clear strategy where we focus on creating a diversified portfolio with a good risk-adjusted withdrawal and high financial stability. And sustainability is the red thread in all our investments. Then we come to the quarter. I joined as CEO in 2022. I have worked to create the right conditions for the strengths that Manahem has to reach their full potential. And during the last year, during 2024, many pillars came into place. And I think now that we have a very good foundation to build the company on. But I am also humble about the turbulence and uncertainty we now experience in the environment with, among other things, trade wars. low interest rates, and of course the impact it can have on our tenants and indirectly on our business. I feel that the recovery will take longer than expected at the end of last year. But I also see that the property sector is a stable business over time. It is properties that provide and also stable cash flows. But of course, we are not completely unaffected by the low interest rate. And as we have previously raised and informed, a smaller number of companies have moved from our property to Finland, where we now see an effect in the result, which has contributed to the fact that our administrative results have decreased by about 3 million compared to previous years. But despite that, we increased our rental revenues by 10%. And I would like to point out that we have the largest share of our business in Sweden, and it is doing well. We had a positive net rental of 1.1 million SEK per quarter, and we also contributed to the property that we acquired in Malmö during the quarter. And after the quarter, we have signed a new lease contract with our existing tenant in Klippans kommun in Skåne. We had a press release about it that came out yesterday. It is a 10-year contract and it covers 4,000 square meters. It is connected to an investment where we will upgrade their premises that they use. In these premises, they carry out junior and post-junior courses for flight technicians. As a result of this contract, the municipality deepens its commitment to Ljungbyhed Park, which is a cluster for education, research and development, both on land and in the air. A large part of the development and research goes to a green transition for the airport. Under kvartalet så gick vi också in i fjärde året som grön aktie enligt Nasdaq Green Equity Designation. Och det här görs genom en genomlysning och den har gjorts av SN Standard & Poor's som visar att 73 procent av vårt hyresvärde och 83 procent av det verkliga värdet på fastigheter är grönt. Vilket är riktigt bra siffror. Nu tänkte jag lämna över till Adella för lite genomgång av Nyckeltalen.

Yes, and as Monica mentioned, the rent revenues increased by 10% compared to last quarter, which means that they fell to SEK 72.7 million, where the largest contributing factor to that increase, corresponding to SEK 5.6 million, is home to the properties Partille Port Bostäder and Bryggan 2, which arrived at the end of March last year, respectively in the middle of February this year. But we have also rented an area in The Corner that we had a rent guarantee for last year, which means that those revenues end up on the list of rent revenues this year instead of other property revenues, which is one of the reasons that other property revenues decrease. But the decrease is also explained by lower media costs due to warmer winters and increased vacancies in Finland. All of this combined gives an increase in total revenue of 1%. The net profit decreased by 5% compared to previous years. This is mainly due to lost income in Finland due to the relocations and renegotiations of contracts that we have signed, but also due to a certain personal restructuring in the Swedish state, which is one of the reasons that the property administration has increased. The administrative result of exclusive currency exchange rates rose to SEK 23 million for Q1 and therefore decreased by 12% compared to last year. This is a development we are of course not satisfied with, but which is primarily a result of the development in Finland. But we see, however, that the difference from the previous year for the administrative result will decrease, all because 2025 is fast approaching. The property value increased by 8% compared to the start of 2024, and the increase is mainly related to the acquisition of bridge 2, which took place in February this year. Q1 compared to Q4 has been a stable average yield in the portfolio and was on the same level in both quarters, at 5.3%. However, there is still a smaller description of Gilden in Finland, which in part is met by the values in Sweden and investments in the Swedish stock. However, there has been a smaller description of the property value of over SEK 6 million compared to the description of SEK 35 million for the same period last year. If we take a closer look at the financing, you can see in the diagram at the top left that the net reward rate has increased by 3% in the last quarter due to the incoming reward for bridge 2, which we also financed to 60%. At the start of Q1, the net reward rate was 44% compared to 41% at the end of 2024. And since we are low-wage, one of our goals with the financing we did this fall was to increase the reward rate where there was room to create more opportunities for acquisitions and investments in existing assets. The development of the current average income we see in the same diagram and it is now at 3.6% in the level with the previous quarter. If we compare to the same quarter in 2024, the average income has decreased by 0.7%. The positive development of the average interest rate is due to, in addition to the lowered interest rate, also to the refinancing we did last quarter, where we reduced the marginal cost by 48 points in the refinanced portfolio, which rose to 1.6 billion. At the top right, we see the capital structure, which shows that there is no decline within a year. The next decline to refinance occurs in the second, respectively fourth quarter of 2026, with a total of 575 million SEK. And per March, 85% of our total loan volume increased to 2.4 billion SEK, the conditions for green financing. And if we look further down to the right, we see that the interest rate bond is spread over time and we have worked actively to secure the interest to reduce the interest rate cost and interest risk. We currently have 65% of the loan portfolio insured and the average interest rate in the derivative portfolio rose to 1.6% at the end of the quarter. Vi har ju också ett långsiktigt mål om att inte hamna under 2,2 i långsiktig räntetäckningsgrad. Utfallet på Q1 var strax under, men vi ser att den kommer att återhämta sig och komma upp till målet längre fram. Ja, och nu ska Monica sammanfatta vårt klimatboksslut för 2024. Varsågod.

Thank you, always challenging. This is a bit difficult material and I will soon show a picture that contains a lot of information, but I think I will guide you through it. The climate record shows our different scopes. These are scope 1, scope 2 and scope 3 in total. Scope 1 and 2 are the direct emissions from our business. These on this side are easier for us to control and influence than for the emissions that we have in scope 3, which includes the indirect emissions, such as the rental guests own electricity consumption. It includes purchasing remote heating and above all emissions from the projects that we carry out in the business. Out of the total emissions in 2024, scope 1 stands for only 0.7% of the total, scope 2 for 3.3%, and then the rest, scope 3, stands for 96%. And we can also note that we have an increase in all scopes, but where scope 3 stands out, which is mainly due to the investments that we have made in the existing state, which are now completed. We also know that these investments give a good economic return, but at the same time give a large carbon dioxide footprint. We can also remember from those investments that we do a lot of energy effective measures that in the long run will leave a smaller impression. The increase we see in scope 1 is due to the increase in source media, but it is also worth mentioning that we have zero emissions from our own business cars and machines, which means that this remains at a low level. The increase in scope 2 is mainly due to the increased use of remote heating, and this can also be related to the fact that we are also expanding the capacity and thus using more remote heating. Together with our colleagues in the industry, we need to continue to pressurize our district heating suppliers' transition plans in order to be able to influence these emissions in Scope 2, because they are actually the major emitters. But of course that does not mean that we should not continue to reduce our own energy needs in large numbers. And if we look at Scope 3 and these large investments that we have made, it also means that when we have these investments, there will be a greater impact. And we can also say that the electricity consumption of the tenants in Scope 3 decreased by 12%. And we have actively worked together with our tenants and had a dialogue to reduce their own electricity consumption. I also want to highlight that as we grow as a company, our emissions will increase, but we have also said that our sustainability goals should not be an obstacle to growth, but we have to work in parallel with this. We also see that our data is continuously improving. In connection with our management measures, we have it easier to follow up, and we also see that it shows effect. We will take variations in the expressions between the years and that is completely natural given our business. And those who want to read a little more about this, I think this is interesting, I refer you to our year and sustainability training for 2024 as you can see on our website. In summary, I would also like to mention, as I mentioned in the beginning, that the majority of our property business is linked to Sweden, a business that is doing well. And we still have a lot of focus on our customer management and renewal, which I am convinced will yield results. And we are well positioned for continued profitable and long-term growth in this changing environment that we are in right now.

Okay. Thank you very much, Monica and Adela. We'll move on with the Q&A session. In a short time, you have signed a number of longer rental contracts in Ljungbyhed Park. And after the start of the quarter, you signed another one with Klippans kommun. Could you tell us more about the opportunities in the park?

Skölla Park is a fairly large park, we have quite large land areas there. And the activities that we have signed with both last year and this year have been there for a long time. And we have made investments on the site, which has also contributed to the fact that the businesses here feel that they want to deepen the collaboration and become more long-term for these establishments. Ljungbyhed Park is a campus with a cluster of businesses that cooperate. Everything comes from research, development and education in relation to the flight and also You can also say that on this site we have great opportunities to work with the total defence. So it is also an attractive part, I think, in the situation we are in now. You can see some positive benefits for that too.

a great opportunity for investments in that sector. We're switching tracks a bit. The EU Commission has recently announced an omnibus package, which is about sustainability. It's a simplification of administration when it comes to sustainability. You put a lot of emphasis on the sustainability issue, but the winds that are blowing in the world now, Do you think it will affect your pace?

No, I don't think so. I think it's important to say that we are clear and that we have a direction and that we will continue in that direction. Personally, I can feel that it is very positive if we get a feedback on sustainability reporting. It is a great craft that needs to be done. if this proposal goes through earlier. Now that it has come, it also makes it easier for us. We may not have to report in the same way, which also makes it possible to strengthen and focus even more on the business and the investments we can actually make there.

Speaking of your sustainability investment, you are a Nasdaq Green Designation company. Has this benefited you when you recently negotiated your loans?

We say that the banks we work with prioritize green financing. There is both sustainability-linked financing and green bank loans. And of course, that is something that we like to take part in and that we also get a bonus for when it comes to a little margin adjustment on the bank.

Thank you. I'm going to raise a question that has come to your IR-mail, so I'll read it first. How do you think about capital allocation, given that your share has been up to 40-50% discounted from NAV? If you buy back the share with that discount and compare it with investing in the direct market, how will you be able to find something that is as attractive for the shareholders as buying back?

First of all, I can say that we are well aware of the substantial data we have. Basically, we are a long-term growth-driven company. Our strategy is to use the funds that we create in our administration to purchase and also invest in our existing stock. So that's the basic idea. Then we always evaluate different capital allocation strategies and I think that if the authorities feel that this is a way to move forward, then of course we will carry it out.

Yes, then my follow-up question disappeared. Your property value has increased year after year since 2020, as you showed in your table here. Many of the companies in the property industry that I follow have not had the same development, they have had some negative years. Is it only acquisitions that have made it so good here, or is there any other explanation?

The largest part is the acquisition. We have also invested in the existing stock, but it is only a small part since we already have the value. One could say that it will be a greater discount on our own capital, the investments we make in the existing stock. So I would say that the biggest effect is from the acquisitions we have made.

The value of the property was now burdened due to the crown effect in the Finnish properties with about 40 million kronor, if I understood correctly. Are there any other effects you get from the crown strengthening?

No, but it is clear that Given that we also have a result calculation in Euro against SEK, it is also affected. But as Monica mentioned earlier, the largest part of our income and our real estate value is in SEK. So the impact is not significant in that way.

Thank you. You have a very clear growth strategy. How do you work with that this year?

A bit like before. We are out scouting for new objects, absolutely. And we see that we would like to expand, first and foremost, in the geographies where we exist, to achieve administrative efficiency. And we also see that we want to continue to expand within social housing, as well as logistics and housing, if there are the right conditions for the objects we are looking at.

You have the reward degree, but how much investment space do you think you have?

I think around 200 during the year, if the star is right.

If the right object appears, do you see other financing opportunities?

We still have good contacts and relations with our banks and we see that we can still use them to finance. In the current situation, it is the cheapest financing, at least for us as a small company. And where we are not on the capital market, if you would now see it as a financing.

We have received a viewer question here, I will raise it. What is the average recorded direct deposit for the property?

Was it 5.3? 5.3%. 5.3%. Thank you.

That was all my questions for today. Thank you very much. Thank you very much. Thank you. We'll be back in three months. See you then.