Fastighets AB Balder (publ)

Welcome to the Balder Q4 Report 2024. For the first part of the conference call, the participants will be in listen-only mode. During the questions and answers session, participants are able to ask questions by dialing pound five on their telephone keypad. Now I will hand the conference over to the speakers, CEO Eric Sellin and CFO Eva Wasberg. Please go ahead.

Hi everyone, welcome to this call around Baldr's Q4 results for 2024. We'll first have a brief presentation and then open up for Q&A. With that I'll leave the word to Erik Selin, CEO of Baldr.

Hi everybody and welcome to this Q4 and result for 2024. The first slide here Baldr at a glance, we are as you know a listed real estate company with the focus on the Nordics. We have a few assets in Germany, UK as well. A little bit more than half of the portfolio is residential and the other half commercial. The portfolio is very diversified both in terms of category and geography. Looking at the last quarter, The rental income grew 8% as well as the operating income. Profit from property management per share compared to last year Q4 increased 3%. So this was the first quarter for a while that we have an increase year over year. And in the earnings capacity, profit from property management is 9% better than last year for the same period. Net debt to assets 49.4 and like for like rental growth a bit slower now 3.5 but still okay level and NAV stands at 88.3 per share Looking at the current earnings capacity this is a slide that we update every quarter you can see now that the rental income is up quite a bit from last from Q3 and that is a combination of acquisition from the joint venture Centur completed projects and indexation and looking further down we have profit from property management 6.5 billion compared to 605 the quarter before and per share that is increased from 516 to 546 we also issued some shares in Q4 you might remember that so but still per share we now have the highest earnings capacity so far and combined with the relatively slow growth in balance sheet we now have if you look at earnings capacity we now have a EBITDA 11.8 and then we exclude projects but we include financing for projects and if you compare one year back and count it the same way where we then have the hybrid as debt that came from 12.6 so it's quite a big improvement in one year we still have the target of 11 but the strong cash flow now and improvement gives us the possibility to actually do some investments and at the same time strengthen the balance sheet and the debt EBITDA number going forward as I said in the beginning a diversified portfolio you can see here regions Helsinki Gothenburg Stockholm Copenhagen and resi is by far the biggest and then we have office retail and hotel other properties so no single category or geography or tenants can make a huge change in the company so and that is our intention that is diversified with a very low risk on the asset side looking at the longer term here is a graph from 2015 we can actually go back to 05 also if we take a longer period but then you can see the long-term trend is of course we want to increase earnings per share that is what this is all about we have had for a couple of years a downward trend because of the rate interest rate increases but now since interest rates are coming down our financial net is stabilized and so now if you compare earnings capacity to outcome you can see the high probability of a up going trend again and here we have from back 05 also the longer term with value debt asset and occupancy and occupancy been extremely boring for almost 10 years more or less always 96.