Fastighets AB Balder (publ)

Welcome to the conference call Fastites AB Balder. For the first part of the conference call, the participants will be in listen-only mode. During the questions and answer session, participants are able to ask questions by dialing star 5 on their telephone keypad. Now I will hand the conference over to the speakers, CEO Eric Sellin and CFO Ewa Wasberg. Please go ahead.

Good morning and welcome to Balder's presentation for Q1. After the presentation there will be a Q&A session. Presenting today is Erik Selin, CEO and myself Eva Wasberg, CFO here at Balder. On that note I hand over to you Erik.

Thanks Eva and welcome everybody. High level information about Balder you have on the first side where you can see our high level number property value and other important figures moving over to Q1 2023 we released the figures today and rental income was an increase of 15% and profit from property management is an increase per share of 9% a bit more the absolute amount but we have more shares outstanding than compared to last year In earnings capacity, we have now updated as we do every quarter, and there we are at 515, and that is a decrease compared to the same period last year with 1%. Debt to assets, 48.2, and like-for-like rental growth in Q1 stands at 5.5%. NAV, 91.65%. Looking at the property portfolio, this more or less always looks kind of the same. It's concentrated to larger cities and capitals in the Nordics. And if you look at categories, residential is dominating with around 50%, more or less, a bit more. And then we have a diversification on the commercial side between office, retail, hotel, industrials and other properties. We also have some development of properties, mainly residentials, but also in some cases pre-let commercial properties. And there are basically two categories. One is that we build and keep it. And the other one is we build and sell condominiums to consumers. And what you can see is that that part of the balance sheet will decline over 23 and 24, since we are very careful with starting new projects. And the existing one is being completed as we go along. So you have a declining value in the balance sheet for projects in these two categories. And during Q1, we finalized one. uh property in the category to sale with a quite good sales result and we also finalize some properties for management and the long-term trend is and our goal is to over time increase earnings capacity and cash flow profit from property management so on this slide you can see the development from 2015 and forward, and we also have the last figure there is the last four quarters. And here on next slide, you can also see the development from inception at 05, portfolio value, debt to assets, and occupancy rate, where you can see that the occupancy is very stable for the last 18 years. And for the last, what is it, seven maybe, has been the exact same occupancy rate. So it tends to be very sticky and stable. Of course, in some parts, because of all the residential, but even the commercial assets have proven to be very stable over long time periods. And here is the earnings capacity that we update every quarter. And now it's slightly lower than last quarter. And you can see the explanation is that we are spending more money on financial cost because of higher interest rates. Otherwise it's very small changes from the last quarter. And we have a forecast for 23 of the 6.2 billion as an outcome for property management profit. and the forecast is unchanged compared to last quarter.