Catella AB (publ)

Good morning and welcome to Catella's earnings call for Q1 26. With me today is our new CFO, Gustav Jansom. Welcome, Gustav. We will share an update on our strategy and financial performance, followed by key focuses for 26 and then open for questions. Catella stands as a leading real estate investment and advisory platform. driven by our deep understanding of the local markets and a proven track record for delivering results we have 160 billion sec on of assets under management and we manage we that's managed by approximately little under 500 employees divided upon operations in 12 countries and we have a revenue of 2 billion sec per annum At the heart of Catella's operations are our two business areas, investment management and corporate finance. They form the foundation of our company. They leverage on our expertise and positions us to capitalize on the opportunities in the real estate investment sector. This structure enables us to pursue long-term, sustainable growth, particularly as the trend of allocating portfolios towards real assets continue to gain momentum. Slowly, but surely. Currently, nearly two thirds of Catella's income is derived from recurring revenue streams, providing a stability and predictability to our financial results. Moving forward, Strengthening and expanding our reoccurring revenues remain a central strategic focus for us. It ensures resiliency, sorry, it ensures resilience and supports our vision for sustainable growth. We recognize that ESG is a fundamental to our business as it shapes both our investment approach, but also our client relationships. It's integral to our vision for growth. Our strong and reputable brand is evident as we approach Catella's 40th anniversary next year, a remarkable milestone for the company. I'll now hand over to you, Gustav, and Gustav will take you through the financial performance of the quarter.

Thank you, Ulrike, and good morning, everyone. Looking at the key highlights for our first quarter and how we deliver on our strategic journey, Back in our Q4 reporting, we mentioned the need to strengthen our line Catella organizational structure. Last week, we announced that we have hired a chief data officer, Nils Sommersell, who will join us in June. We continue to monitor our legacy balance sheet investments, and there are no material financial impacts to report in Q1. Also, We continue to utilize our strong balance sheet, for example, through the JV with Pictet Alternative Advisors to deliver 205 apartments in Greater Copenhagen. This structure, combining a limited equity commitment with a long-term development mandate, is intended to generate both fixed and variable fee income while maintaining capital efficiency and scalability. On the topic of Cattell's balance sheet, we have also proposed to the board to launch a share buyback program which, subject to approval at the AGM on the 12th of May next week, would allow us up to 100 million Swedish kronor of shares to be bought back during 2026. We will share more details following the AGM. All right, looking at the Q1 financials, we delivered net revenues of Swedish krona 303 million and an EBIT of negative 45 million SEK. Although it's still being a negative number, if we adjust this EBIT for non-recurring items in 2025 reporting, this is an improvement of 26 million year over year. Reported asset under management increased from 155 billion at the end of 25 to 160 billion at the end of March 26. This increase is driven by a reporting change implemented in 26 where assets under development are now included in our asset under management. Excluding this effect, asset under management declined by 3 billion during the quarter, reflecting softening valuations and termination of mandates in Finland. Our corporate finance division reported better EBIT despite lower revenues, and this is a sign that costs are well controlled as the business navigates a cautious transaction market. And although the transaction market is moving slower than envisioned, we remain positive that transactions will complete during the year, and we are encouraged by the mandates won by our corporate finance teams across Europe. And supporting this view of the market is transaction volume data showing that activities are starting to pick up. Turning attention to our business areas performance, starting with investment management. As mentioned, asset management decreased in quarter due to headwinds and fund asset valuations and lost mandates, but it's helped in the quarter by currency movements. As mentioned earlier, you see the asset under management growth helped by reporting change, now including assets under development, and that's the little reddish box at the final graph. Our revenues from investment management remain stable, which again support our strategic imperatives outlined earlier. The 5% drop in management fees in the reported Swedish currency figures is almost entirely explained by currency translation changes. The EBIT improved compared to previous year with a healthy margin. For corporate finance, the revenues were flat compared to the same period in 25. The negative EBIT is a reflection of the low number of transactions completed in the quarter, so more seasonality driven by anything else, with a majority of transactions typically occurring in the fourth quarter. While still negative, the EBIT is looking better as a result of lower operating expenses. And then lastly, we share details on the legacy balance sheet investments business. The key financial impact here comes from the Cactus disposal, which following that disposal no longer generates rental income for us. Then we move on to looking at the results on a consolidated basis. We have explained the EBIT performance in the business area section, and therefore I will now focus on a few items below the EBIT line. The largest impact comes from FX, where weakening Swedish krona in Q1 contributed to a positive result of 12 million in the period, compared to the opposite in Q1 2025, where FX moved negatively by 104 million, a swing of 126 million in net financial results. Further positive impacts are 90 million Swedish krona from borrowings related to Cactus, where there were costing 25, but no costing 26. The net loss for the first quarter of 26 is 50 million Swedish krona. Excluding FX, that number is a loss of 62 million, which is better than the FX adjusted results for 25. We believe that this shows a solid improvement in the business and market conditions on an underlying basis. With that said, I'm handing back to you, Rikke, and thank you.

Thank you. So before I open for questions, I'd like to be clear about our strategic priorities for 26. What we will and do focus on already and how we will deliver stronger, more resilient performance long term. our priority is clear. We will sharpen Catella's strategic focus and concentrate all our resources behind a defined scalable growth path. We'll support this by stronger cross-border collaboration across the company. We're prioritizing earnings quality and resilience. We'll expand our recurring revenues as an originator and manager of real estate investments. while we will strengthen our operational profitability. Our strong capital position gives us the ability to accelerate investment management through disciplined seed investments and selective deployment of capital via minority partnerships. This year, we already repurchased BOMS. But subject to AGM approval, we also aim to use some of our available capital to buy back our own shares. Further details on the program will be made available after the AGM. Operational excellence is a defining priority in 26. We've strengthened our leadership team with key appointments. Gustav, who's with me here today, our CFO, Dominik Rörig as our head of investment management in Europe, and Nils Somersel as chief digital officer. They bring a deep expertise and a strong track record from leading companies in their respective fields. These capabilities will raise execution quality and pace across the group. to deliver objectives will increase targeted investments in strengthening capabilities, track record and operational efficiency. Looking ahead, we see a European real estate market in gradually recovery, offering attractive opportunities, even if uncertainty still remains. We're building on a strong heritage and deep expertise. we see significant untapped potential. By focusing on what we do best and strengthening the collaboration and operational excellence across the company, we're positioning Catella to act selectively with a focus on value creation. Together, these actions will reinforce One Direction, a more focused, scalable Catella, delivering stronger, more predictable earnings and long-term value. Thank you all for listening, and we will now open for questions.