Atrium Ljungberg AB (publ)

Welcome to today's quarterly presentation by property company Atrium Ljungberg presenting the results for the second quarter in 2023. After the presentation, a Q&A session will take place where you can write your questions to the company in the interface. So please welcome today's speakers, CEO Annika Ånäs and CFO Ulrika Danielsson. Please go ahead.

Thank you very much. The heading for this report is net letting remains positive while profit from property management continues to show solid growth. I would like to start to summarize and highlight a few things from this report. Our property portfolio looks very similar to last quarter with 80% of the value in Stockholm. The biggest segment office stands for 63% of the total value. Our net letting amounted to 25 million in the second quarter and 36 million first half year. Termination from our side due to upcoming projects amounted to 2 million the first quarter and 5 million the first half year. Our profit from property management increased by 24% in Q2 and the like-for-like figure in operating net increased by 15%. We have today ongoing projects with an investment of 7 billion, where 4.4 billion remains to be invested. Of the projects being completed in 2023 and 2024, the pre-letting is 66%. As I mentioned in the beginning, We have a big focus on Stockholm both in our existing properties and in our upcoming investments. The major areas are Hagastaden, Slussen, Slakthusområdet and Sickla. All areas where we have a subway in Stockholm or to where the subway will be extended in the coming years. I think we have a unique position in our locations in Stockholm. During this quarter, we have launched our vision in Sickla, Stockholm wood city. I will come back to this in the end of the presentation. In the first two quarters, we have signed agreements corresponding to 98 million in annual rent, proving that demand remains high for office space in great locations. However, We also note that companies are focusing on their costs, and we have received terminations from customers corresponding to an annual rent of approximately 62 million. The locations in Greater CBD in Stockholm are still generating the most interest, with Slussen and Hagastaden seeing the highest demand in Atrium Universe portfolio. Retail comprises approximately 20% of the company's total property value and represents a large diverse range. We have a good performance in our retail hubs and have a higher number of footfall now than before the pandemic. The turnover in the shopping center also shows greater numbers than before the pandemic, partly driven by prices. At the Swedish condominium market, we see a more stable pricing situation, where prices for now have stopped falling since the beginning of the year. We are continuing to see a low number of sales launched for new building tenant-owned dwellings, far below the average value over the past years. The number of apartments sold are at low levels, and we see that our competitors are now doing price adjustments. During the quarter, we have signed several new contracts. As I already mentioned, net letting ended up at 25 million in the quarter. First, I would like to comment that we have renegotiated our lease contract with our biggest tenant, Ericsson, in Gothenburg. 37 000 square meters. This means that Ericsson will remain at Lindholmen for at least the next four years. The biggest new leases were signed with MTR Nordic where we have signed two contracts. First 2 500 square meters for a new head office in Hagastaden. and 1,300 for the training operations for commuter trains which will be moved to Norddistrikt in Kista. We have a well-diversified contract portfolio where our 10 largest customers account for 19% of the revenue. Of this 19%, 8% is money from state and municipalities. The average contract period was 4.6 years. Offices is our biggest source of RenovU with 55%. Customer durables, our second largest part, represent 15% of the total.

Let's take a closer look at our retail portfolio.