Fastighets AB Balder (publ)

Morning, everyone. Welcome to Baldu's Comfort for the second quarter. Erik will first take us through some slides, as per usual, about the developments in the quarter, and then Eva will go through some financing, and we'll also talk some longer-term picture for the assets liability management side. But Erik, I'll let you start.

Thanks, Jonas, and welcome, everybody. Today we have our Q2 results. Looking at Valderona high level, we have 215 billion in property value, 96% occupancy. We are, as you know, a Nordic company with Nordic exposure, both in resi and commercial properties. And looking specifically at Q2, we had a rental income increase of 8%. And even the NOI is increasing 8% compared to the same quarter last year. Profits from property management decrease a bit. That is, of course, due to higher interest rates cost. Looking at net debt to assets, it's now 49.8. So that is a slight improvement from year end and previous quarter. like for like rental growth is now 3.6 percent and the nav 85 44. uh looking at the earnings capacity that we update every quarter more changes from last quarter but a small improvement even though so we have a bit higher noi income stable on administration cost And also on financing costs. So all in all, it leads us to slightly better earnings capacity than last quarter. So it's at 5.9 compared to 5.850. And per share, that's 5.03 in this report. Our portfolio is, as I mentioned in the beginning, diversified in the Nordic countries and also diversified in property categories. The largest exposure is towards capitals and larger cities. And looking at categories, we have resi for roughly half of the portfolio. And the other half is commercial. And then that is also diversified between office, retail, industrial, hotels and other properties. So all in all, a Nordic exposure. Resi is the most dominant category. And then it's diversified commercial properties. We also have property development, primarily in residentials. We have it in Sweden, Denmark and Finland. A little of it in Norway as well. There are two categories. One is that we build properties and we keep them for the long-term holding period. And the other one is that we build and sell. Building and selling is primarily in Sweden, where we build apartments and sell as condominiums. While in the other countries, the norm is that we hold for a long time the majority of what we build. Not everything, but the majority. So it's sort of two different categories in the P&L. This quarter, you can see a decrease in investments. And that is as expected, since we've been very slow on starting projects for a while. So this will continue to slow down. even more, and year-end we have not that much actually under construction. Long-term, we think this is an interesting segment to be in, and we continue with zoning plans, so we have a long-term view on it. Our building rights are concentrated to Stockholm, Gothenburg and Helsinki.

So this is just to show you a little bit about the long-term development. And here you obviously have the value creation. But perhaps even more interesting is the next slide showing that over time, we have not only increased the value of the company and our earnings capacity, but also there's been a slow but fairly consistent reduction of our debt to total assets. And we've also seen a very stable occupancy rate. I think you've heard us talk about before that we will prioritize the leveraging a bit in the coming quarters and years. I think that's really nothing dramatic compared to what we already have seen going back a few years. I think occupancy rate as well remains very stable, which I think speaks to the diversified portfolio that we have involved there. And even in times like these, when we see different developments in different segments and geographies, we're seeing a very uneventful development. I think in this context as well, we've talked about before as well that our Finnish portfolio have seen slightly weaker development, in particular on the rental growth side. In the quarter, we actually had a slight increase in occupancy in Finland. It's very marginal, but still, it's a stable sign. And as we communicated before, we're now seeing the peak of new housing units coming to the market. And we should see a more stable development of rental growth and occupancy sometime next year, probably. I think looking at the other segments, it's a fairly stable picture overall and nothing that really stands out.