Catena AB (publ)

stick to the same agenda today as we used to have a short summary business overview and an update followed by sustainability finance and a short takeaway before ending up within q a so next slide please let's go into the summary of q3 2024 where we report a 17 increase in rental income ended up at 1 billion 566 million sec driven by acquisitions projects and by our CPI-linked contracts. Profit from property management increased by 7% in total and per share it was down to 16.78 SEK per share. We do see this as temporary since we now have acquired a lot and have a much stronger cash flow in the coming quarters. We also show this in our earnings capacity in our report. Compared with earnings capacity report one year ago, we now have an increase by over 21% per share going forward. In our result, we have an item related to a write-down in our joint venture companies with 28 million SEC. Last year, at the same time, we had a value uplift from this JV with 37 million SEC. So if we adjust the income from property management from those items that is not cash flow driven in the both reports, we have an increase in income from property management by 15% and income from property management per share by 6%. And the balance sheet is very solid with the LTV at 37.6%. And furthermore, we report an increase in NRB per share up to 416 SEK. Catena ended up the quarter by acquire DSV Horsens in Denmark. This transaction improved our key metrics, which is also confirmed with the rating upgrade from Fitch. Both our letting ratio and whale are higher thanks to the huge acquisition we made. and we will for sure come back to that later on. With all this in mind, we are comfortable to generate strong cash flow going forward. Next slide, please. Looking to the business overview and the market update. The transaction market has picked up after the summer and we see more players submitting sharp bids and yields starting to creep downwards. And the numbers for e-commerce for September 2024 in Sweden has a growth by 28% measured year to year compared to the same period for 2023, according to Svensk Handel. And the strongest growth is witnessed within the online pharmacy that is up 20%. Regarding new developments, it is pretty much the same story as last quarter, but maybe with some more activities in the markets. and we have for sure ongoing discussions, but it takes time today. We have signed LOI with one customer that hopefully will lead to a sharp agreement before the end of this year. Furthermore, we are in the starting blocks for another project where we first have to solve some challenges with natural values before the county administrative board give us the okay to start the project. Lastly, as the same as the last quarter, And as far as we know, there is the same situation regarding vacancies around the Stockholm-Maladon region as we have told you the other quarters. Next slide, please. Looking into our customer base, there has been a major change regarding the top 10 customers. After the transaction in Denmark with DSV, is DSV now our biggest customer, standing for 20% of our contractual value. Logistics and transport has at the same time increased as a segment and is now standing for 51% of the contractual value. Next slide. And a look at our portfolio shows that the value for the first time exceeds 40 billion SEK, explained by, of course, all the acquisitions we have made during the last quarters and especially the Danish acquisition at the end of September, which amounted to about 5 billion SEK. The share in Denmark has now increased to 18% and the lessable area in the total portfolio is now really close to 3 million square meters. Next slide, please. Business update. Next slide again. And at the end of August, we carried out our second directed share issue during this year, which David will talk more about later on. Most of the proceeds were used to acquire the DSV assets in Denmark, and this transaction together with the other acquisitions made during this year will lead to significant increase in earnings going forward. Next slide, please. And one of the highlights of the quarter was that we received an upgraded rating to triple B flat from Fitch with a stable outlook. The upgrade reflects our strategy in strong performance and will contribute to our ability to generate further profitable growth. Next slide, please. So looking into this fantastic acquisition in Denmark, it's the largest logistics center in Denmark. with over 300,000 square meters of logistics space. And we are not only adding substantial states of art, well-conceived logistics space to our property portfolio. We are also forging a deeper relationship with DSV, which is now Catena's biggest tenant. The center is located in Håsands, close to the highway. At the site, DSV has warehouses, cross-stock terminals, and also office spaces. The roofs features large solar cell plants installed by the tenant with a total capacity of 35 megawatt annual. This combined with other energy solutions makes the entire facility self-sufficient. Next slide, please. A picture of our project in Ramlösa, Helsingborg, that we do together with No Waste. We won the land allocation competition from the municipality in Helsingborg. It's ongoing and the first building will be completed in Q4. And No Waste will be the tenant at this location, which was named as the logistic establishment in Sweden of year 2023. Next slide. Now I'm going to Sundsvall and our most recently completed project where we welcome Kyl och Fris Expressen as a tenant. We already have them in Luleå, but now they move in also in Sundsvall in a state of the art temperature controlled cross-stop terminal. Next slide. Here is our pipeline in terms of development. which totals to around 2.6 billion, where 800 million is remaining investments. When all is completed, we will add another 200,000 square meters to the portfolio. And yield on cost on those projects is an average of 6.7%. And as we have said before, we are aiming around 7% in new developments. Next slide, please. And for future development on our land bank, we are working with the zoning plan processes. So no updates today about the land bank. Next slide, please. Looking into our leasing operations, our net leasing was plus 21 million in the quarter and summarized to plus 66 for 2024 so far. Our whale is now increased to 6.7 years, and the letting ratio is almost at 97%. Next slide, and please, handing over to Sofie.

I'm going to sustainability. Hello, everyone. Thank you, Jörgen. The environmentally certified area made a small increase to 42% And it will increase further as projects and new acquisitions that are in the process of being certified is finalized. We maintained our EFRA SBPR goal certification regarding our sustainability reporting for 2024. And the scope three is at a high level compared to last year due to us finalizing projects. We report to scope three when the buildings are completed which means that the scope three will increase once projects are finalized. We work with the carbon dioxide budgets in all our projects to limit our CO2 emissions. And for some financial updates, and next slide please. And next slide to income. Rental income came to 1.6 billion, growth of 17% since last Q3. The increase was driven by indexation, larger acquisitions and projects being finalized. Net operating surplus follows this development and also rose 17% to 1.3 billion. Profits from property management rose 7% to 911 million compared to Q3 last year. And next slide please for some rental development. We had a life-like growth of 6.1 driven by the CPI. Acquisitions contributed with 99 million SEK with the newly acquired properties in Landskrona Helsingborg with DSV as tenants and also Järnholmen that we bought in Denmark. There were two divestments during the quarter, a small one in Sweden and a sale in Denmark of the property in Brønby outside of Copenhagen. And in the project development, the finalized project to Elke Gansen in Jönköping, Leica in Malmö, and MM Sport in Landvetter, Gothenburg, were the main contributors. And so far, this amounts to 47 million. And now handing over to David for some comments on financing. And next slide.

Thank you, Sofie. And good morning to everyone. During the quarter, and what Jörgen mentioned earlier, We have raised 3.1 billion in equity, followed by the acquisition in Denmark, of course, mounting to just over 5 billion of equity raised this year. We are pleased with the successful equity placement and the confidence shown by the investor community. Additionally, we are satisfied that the acquisitions we made are immediately adding value for our shareholders. In total and year to date now, as I mentioned, we have raised 5 billion of equity and invested almost 10 billion this year so far. And on balance date, that means our APRA NRV is at 416 per share, almost 5% higher than in previous quarter. Our strategy on the capital structure, given that we have been able to increase our profit from property management over these two years of turbulence that we have experienced, we are still focused on maintaining financial discipline going forward while continuing to seize investment opportunities. And going over to next slide. We are very happy to announce that the combination of actions taken this year, capital raised and the investment opportunities sourced and executed have led to several metrics improved operationally, as Jørgen mentioned, but also financially. And this was confirmed earlier this year by the rating agency Nordic Credit Rating and also just recently in October by Fitch Ratings, adjusting our long term credit rating to flat triple B. And this will, of course, support our financial capabilities going forward. On balance date, loan to value at 37.6% and net debt to EBITDA of 8.2 times with a run rate of 7.6 times. Position as well to remain agile and ready for further investments along the way. We are also satisfied with the ongoing theme to transform our portfolio to higher efficiency standards, thereby enabling a gradual shift also to a more sustainable financing position. And right now we are sitting at 70% of our outstanding loan portfolio being sustainable. And next slide. Debt and money management. have taken actions in the third quarter to extend the overall debt maturity along with lower financing costs in total we have raised 2.5 billion in debt during the third quarter and almost 5 billion year to date among some of the highlights taken actions taken in the quarter we have issued 1 billion in unsecured debt paying 100 basis points over STIBOR three months for three years and 135 basis points over STIBOR three months for five years. The second main event I would like to mention is also the sourcing of 1.7 billion of Danish mortgage bonds at attractive terms with debt maturity of well over 10 years isolated. Our liquidity, including debt commitments, totaled 4.2 billion as of the balance sheet date, aligning with our target positioning us for further investments. And going to next slide. Right now, the macroeconomic environment is marked by uncertainties around productivity and growth trajectories. While both the US and Europe face political challenges, the US has a clear stance on pursuing debt-fueled growth, whereas Europe remains uncertain in this regard. But in Europe, as well as in the Nordics, we anticipate further central bank rate cuts, as recent CPI figures have fallen below the long-term target of 2% that central banks usually look at. During the quarter, we entered Danish interest rate swaps of 1.1 billion, carrying an average fixed rate of approximately 2.4%, with an average term of six years. Approximately 62% of the loan portfolio has a fixed rate, and the average interest rate maturity was 2.7 years on balance sheet dates. Now passing over to you, Sofie, for next slide and guide us through capital deployment and valuations.