Fastighets AB Balder (publ)

Good morning, everyone. Welcome to this presentation for Baldur's first quarter results 2026. My name is Jonas Eriksson, Investor Relations, and with me in the room, I have Erik Selin, CEO, and Eva Wasberg, CFO. So I'll hand over to Erik and Eva for some opening slides, and then we'll open for questions after that.

Thanks, Jonas. Looking at Balder at a glance, the overall picture, you can see there is a Nordic real estate exposure. Roughly half is residential and half is commercial. By this quarter, we had a portfolio value of 237 billion Swedish kronor. Occupancy rate 95%, net debt 49%. The portfolio value of 237 billion Swedish kronor. Occupancy rate 95%, net debt 49%. uh we have a good liquidity of 22 billion nav per share stands now at 96.6 and that's a growth compounding rate of 25 since inception and also worth to mention we have a rating from s p triple b flat and that was recently confirmed that was in april Moving on to the first quarter, rental income is up only 1%. That is quite a low figure, we think. We have some explanations for that and we have a currency effect that is a headwind for us because of the Swedish Krona strengthening. So there you have a couple of percent if you have constant currency and also in the NOI increasing one percent, you have the same effect and also that it was a colder climate than normally this quarter. So adjusted for that, I think we will be rather five, six percent improvement. Profit from property management is down 12% and there you have the explanation in the name of Norion that we will most likely decide to distribute later today in the AGM. So if you adjust for that, the Norwegian shares will be as a dividend for all the shareholders. So adjusted for that, we have a 3% increase as is. And of course, if you wouldn't have the currency headwind and cold climate, it will be a bit better than that. But so you can say it's OK. We prefer, of course, a bit stronger increases, but not totally bad. And if you look at earnings capacity, we have a decrease, but the same explanation Norion. So if you exclude that, we are on track for a healthy growth in profit from property management. And like for like rental growth, 1.3, NAV 96.6, as I said just before. Looking at earnings capacity, our more or less favorite slide, perhaps you see this quarter that the rental income is up and NOI is up as well. And why this figure is slightly stronger than the outcome Q1 is that we made acquisitions Q1, but they closed. very late in the quarter. Actually, one of them was the last day and another big one was maybe one week before quarter end. So this is sort of including all the investments. This is the run rate now. And all in all, this summarizes down to 6.1 billion and per share 517. And you can also see that the per share improvement is a bit better than the profit improvement. Reason is that we bought back 6 million shares in this Q1. And portfolio-wise, Helsinki is the single largest region, followed by Gothenburg, Stockholm, Copenhagen. And as I said, we have Resi a little bit more than 50% of the portfolio, Office 16, Retail 11, and Industry Logistics 7%. And this figure has been around these numbers for a couple of years. Looking at the whole portfolio, you can see that 80% is located in capitals and larger cities. And the long-term trend, that is our focus. We always have a long-term view on things around here. So we had, if you take a longer time horizon, we have very good improvement over the years. The latest three, four years been flattish and obvious because of the interest rates going from zero and upwards. Here you see also property values, net debt to asset, occupancy. So we have over time increased portfolio of course net debt around 49. In the longer time period we like it to be a bit lower but we have even there a long term view on it and not so focused by quarters. Occupancy rate is now 95. It's more or less always 96 if you look back, but occasionally it has actually been 95. So very, very stable in general. And the explanation for the bit weaker occupancy is primarily located to some weakness in the office segment occupancy.

Looking at the financing, the funding mix is a 50-50 split between bank and bond financing. The level of available liquidity is continuously a bit elevated due to the concentration of large maturities in the beginning of 27. The interest rate fixing and hedging ratio is stable and the average interest rate is unchanged compared to last quarter at 2.9. This quarter we had some volatile currency movements that have temporarily affected some of our key ratios. For example, net debt to EBITDA. In the balance sheet at the end of March, we see a weaker Swedish krona against the euro compared to year end. And at the same time, the average exchange rate affecting our income statement during the quarter was stronger against the euro. Worth mentioning is also that Noria no longer contributes to the income statement and the acquisitions made in the quarter have not contributed to the earnings in Q1 since they were finalized late in the quarter. Here you can see the long-term trend of the portfolio value in relation to net debt to total assets. As you can see here, net debt to total assets increased during the quarter, which is related to the reclassification of Norion and currency movements. The current encumbrance level is 23.9, which is around the same level as the earlier quarter. So over to the maturity structure, we have refinanced bank loans of around 8 billion SEK with maturities in 26 during the quarter. And in the bond market, we have been quite active, taking advantage of the favorable conditions in the beginning of the year and have issued in both Euro and SEK as well as redeemed the remaining hybrid capital. And here is some more structural overview of the funding and capital side. As we have said before, we will continue to have a balanced capital allocation until reaching our target of 11 times net debt and that target remains unchanged. Here is also an updated calculation on the convertible bond, which when that is converting, assuming that we are above strike price, obviously we have a very positive effect on the indebtedness numbers as well. And in terms of funding strategy, there is no change compared to previous quarters. This was all from us. And on that note, we leave over to Q&A.