Catena AB (publ)

Hi, and warm welcome, everyone. In today's presentation, we start with a short summary of the report, followed by a short overview of our business. And we will then proceed to the business update, where we will touch upon our current project. Sophie and David will, as always, walk through the numbers in the financial update and sustainability. And then at the end, we will open up for Q&A. Next slide, please. So let us summarize 2023. We report 17% increase in the rental income driven by acquisitions, projects, and stronger like-to-like numbers driven by our CPI-linked contracts. And the profit from property management increased by 16% in total, and per share, the increase is 4%. The balance sheet is very solid with an LTV at 37.1%. in the last quarter we have an increase in our property values much due to two land areas where we now have zoning plan and water judge in place and the value change in combination with our earnings in q4 adds to increase in the nrv per share with 24 sec and ends up at 392 sec per share with all this in mind we are comfortable to grow further and to make some acquisitions and more projects and in that way increase our LTV a bit and at the same time increase our earning capacity. Next slide please. And the business overview now and next slide please. So talking about 2023, it's obvious that it was a trying world from a geopolitical and economic perspective. This has resulted in low transaction volume and a sort of wait and see mode for our customers in general. And we now have started 2024. We can see a bit more positive attitude in the transaction market where buyers and sellers starts to be agreed on values. And at the same time, we have quite many discussions about new projects, both from existing customers as well as with potential new customers. The processes for signing new lease agreements It'll take longer time, but we just have to accept that. All in all, I'm optimistic that we are capable to present some new projects during the coming quarters. And regarding the e-commerce, no one couldn't miss that it has been trending down in terms of value, namely 8% for 2023. The more interesting point to talk about is at the same time, the number of parcels has increased by 8%. That means that people still use internet for shopping, but they consume cheaper items. And even more interesting news that came the other day actually is that for January 2024, the e-commerce turnover increased by 19% compared to January 2023. Another thing that we have talked about during the year is Our possibility within the energy area, we have started to install solar panels and some batteries, but it takes time to solve challenges with energy companies and their connections and infrastructure. A new thing that we see is coming more and more is short stations for electric trucks. It's still early in the process, but we clearly see that we have a role in those solutions in the future. Lastly, We can now ascertain that there are new build vacancies around the Stockholm Maladalen, but we cannot see any impact in our business yet. And the trend speaks for logistic and higher demand for more spaces going forward. The clear trend in January 2024 for e-commerce, as I mentioned before, speaks in favor for that. Next slide, please. Regarding our customer base, there has not been any major changes. The top 10 customers now stands for 44% of the contractual value. And as before, logistics and transport together with food and beverage are now the two big segments in our portfolio. Next slide, please. During the last quarter, we acquired a piece of land in Helsingborg, which brings the portfolio to a total of 132 properties with a rental value of almost 1.9 billion SEK. We also see uplift in the fair value compared to last year, more than 3.5 billion SEC. A major part of this is, of course, the deployment in on our ongoing projects and acquisition, but also the value changes that I talked about before. Next slide, please. Let's have a look at our business update. So next slide again, thank you. Current development and our ongoing project is impressive and totals around 3.8 billion SEK where 1.9 billion is remaining investments. When all is completed we can add approximately 320 000 square meters to the portfolio. The year-long cost is around 6.5 and for new projects we are aiming for 7% as we presented the last one to Rugvista in Malmö. Next slide, please. This is namely the Rugvista in Malmö, where we now have started a project of approximately 14,000 square meters to Rugvista. After completion, we have turned this brownfield project to something very modern and attractive, located really close to the center of Malmö. Next slide, please. And this project in Jönköping is also one of our latest projects and ongoing. The new facility will cover an area of approximately 33,000 square meters, part of which will consist of highway storage of 30 meters high. And this will be the first highway in wood frame construction. And Catena has signed a nine-year lease agreement with third-party logistic company No Waste Logistics for the facility with an option to lease the remaining space And in the facility in the West, Logistik will handle flows of goods for Grandgården, a leading retail company in gardening and agriculture. Next slide, please. And this is Jönköping and Elgiganten, and we are nearing a completion and our tenant Elgiganten is ready to move in in May this year, and they will rent approximately 86,000 square meters. Next slide. And at the logistic position Landvetter in Gothenburg at the airport, as we speak, we have completed the first building to MMM Sports. They move in to a brand new facility of approximately 8,700 square meters. And the construction for Menego as a neighbor to MMM Sport is ongoing and is expected to be completed at the end of this year. Next slide, please. the possibilities in regards to our land bank. We have had success in and in Stockholm South. So now we are ready for more projects on our land banks. And the land bank speaks in our favor to be capable to deliver many new projects going forward. And the potential of new GLA is somewhat 1.7 million square meters. Next slide, please. Looking at our leasing operations, our letting ratio continues to be high, standing at 96.6 compared to 96.4 the last quarter, reflecting the strong demand in the segment. And our net letting was in queue for actually flat. With that said, I would like to hand over to Sofie for the sustainability and financial updates. So next slide, please.

Thank you, Juergen. And hi, everyone. Next slide. Our sustainability work continues. We now have reached 39% of our eligible area as environmentally certified. And we continue to maintain a high level of EU taxonomy alignment for our CAPEX at 74%. And produced energy from our solar cells increased 18% since last year and reached almost 8,000 megawatts. And now for some financial update. And next slide. And over to income. Rental income for the year amounted to 1.8 billion, a growth of 17% since last year. The increase was primarily driven by indexation, acquisitions, and some projects being finalized. The higher rental income increased our net operating surplus with 90% to 1.4 billion. The higher surplus ratio is explained primarily by us divesting older facilities and replacing them with efficient facilities with lower property costs, either through acquisitions or finalized projects. And profit from property management rose 70% to 1.1 billion compared to last year, 954 million. And over to the next slide, please, for some rental development. The largest positive impact on our rent is our CPI-linked contracts that came to effect at the start of the year, giving a like-to-like growth of 11.6%. Acquisitions contributed with 73 million, with, for example, the two properties in Denmark and two properties that we bought from E-Scout during the year. Divestments made a negative contribution of 32 million, and within projects, the main contributors were, same as last quarter, the completion of the post-nord and the no-waste facility, both in Helsingborg. And now over to David for some comments on finance and next slide, please.

Thank you, Sofie, and good morning. On balanced day, the equity ratio of almost 52% signals a resilient financial standpoint. APRA NRV of 3.92 crowns per share signals another strong profit contribution in 2023, as Jörgen and Sophie has pointed out. The fourth quarter of 2023 was characterized by a significant drop in long-term interest rates on back of a combination of lower inflation and from fear of economic recession. With interest rate peak likely behind us, we expect investment sentiment to gradually pick up in 2024. Over the last months, we have witnessed a huge demand from credit investors and credit spreads has compressed quite significantly in comparison to 12 months ago. For investment grade companies, we expect this trend to continue over the year to come, creating a viable and flexible alternative to grow. Given our financial position, we should be able to use both debt and equity alternatives to continue facilitate value accretive investments. Next slide, please. On balance day, our financial KPI screens, there is comfortable headroom to our financial policy and to our existing financial covenants. A net debt to EBITDA of 7.2 times signals operations are doing fine and is well balanced against our net debt position. With an interest coverage ratio of four times, there is plenty of resilience built into the structure. With our loan to value policy limit of 50%, which was implemented already in 2021 before rates took off, combined with our view that markets has turned somewhat more positive over the last months makes us less concerned about using a bit more leverage going forward. With the mind of keeping a safety margin and taking into consideration the uncertainty that still prevails in the market. Next slide, please. During the last quarter, we refinanced 1 billion of bank debt at satisfying terms. Over the next 12 months, approximately 2.5 billion of debt is set to mature, which equals just over 20% of outstanding debt. There is sufficient liquidity to cover for refinancing operations should that seem like the proper choice. With the current trend in mind, with credit margins, sorry, With credit margins getting lower, we expect to make use of a blend of capital market funding and bank debt going forward. Next slide, please. During the quarter, we utilized a window of lower rates in December and acquired interest rate swaps for 500 million with a fixed rate of 2.4% and a maturity of five years. Following this, our consolidated interest maturity structure implies we have currently 68% of total debt fixed with an average term of three years. Our derivatives portfolio and fixed interest loans combined have a mix of maturities up to 10 years from now. The interest sensitivity implies that if short-term market rates would move out another one percentage point momentarily from here, we would still be able to keep interest coverage ratio comfortably well over three times. And walking you through capital deployment and valuations, I hand over to Sophie. Next slide, please.