Catena AB (publ)

2025. No lease agreement is signed at this moment, but we have started the letting job and we hope to be successful with that during this year. The asset is located in Køge, which is one of the top logistic locations in Denmark, and that will be our first footprint in that region. Next slide, please. Our ongoing project portfolio totals to around 1.3 billion SEK, where 400 million is remaining investments. And when all is completed, we will almost add 90,000 square meters to our portfolio. The yield on cost on those projects is around 7%. And for new projects, we are also aiming to be around 7%. In the current market, we will not start any speculative projects at our land bank. Next slide, please. The situation with our land bank and ongoing zoning plan processes is in the same as last quarter. We feel very confident that the land we have is in attractive logistic locations and that we can create profitable growth in the future. At the same time, we see that it's becoming more and more difficult to get more sown land. So the value of the land should also rise in the long term. Since there are no question of any land allocations, we are not in a hurry to get started with construction. We do this together with our customers when they are ready to sign new leases. Next slide, please. For a leasing update. We can see that our net leasing was strong in Q1. It came in with plus 47 millions for a quarter. Our whale is now at 6.5 years and the letting ratio is at 96.5%, which is a really strong number. Next slide, please. For an update around the sustainability. Next slide. The environmentally certified area is now at 53% and will increase further as projects and new acquisitions that are in the process of being certified is finalized. But happy to see that we are more than halfway to our 2030 goal. The Scoop 3 is at a high level and reported on a rolling 12 month compared to last year due to finalizing many big projects. We work with carbon dioxide budgets in all our projects to limit the CO2 emissions. And here we have made some really impressive improvements. We continue to maintain a high level of EU taxonomy alignment. For example, our turnover came in at 76% compared to 71% in last quarter and produced energy from solar cells reached almost 10 megawatts. And on rolling 12 months, that was on, sorry, on rolling 12 months and totally installed output on our roofs is now almost 70 megawatts. And now over to David for some financial update.

Thank you, Jörgen. Good morning, everyone. This slide illustrates the strength of our underlying earnings with year over year growth across all key metrics. Rental income increased by 31%, as Jørgen pointed out earlier, largely driven by acquisitions. Net operating surplus grew by 36% and profit from property management rose by 40%, reflecting continued scalability and cost control. Earnings per share from property management increased by 18% to 6.6 crowns. compared to last quarter, underlining our ability to convert top-line growth into shareholder value. Even in a volatile macro environment, our model continues to deliver resilient earnings with operational leverage. Next slide, please. This slide highlights the composition of our rental income growth from the first quarter of 2025. Total rental income, as I just mentioned, grew by 31% year over year. And as you can see, it's primarily driven by acquisitions, which contributed over 25%. Our completed development projects added a further 5.3%, including the recently finalized 42,000 square meters facility in the Gothenburg region of Herida, fully leased to Menigo. Like for like rental income increased by 2.2%, mainly reflecting CPI linked indexation, but also some rent negotiation uplifts. These results underlying our ability to drive growth through a diversified approach of combining strategic acquisitions, selective development, and solid operational performance. Going over to next slide. Let me start with an overview of our capital structure and the broader macroeconomic context. As everyone is aware of, Right now, this remains a market shaped by elevated geopolitical uncertainty with selective capital availability. While these dynamics present clear challenges, they also reward disciplined capital allocation and long-term focus, which is what we tend to focus on. From our perspective, the first quarter offered relative stability. Our earnings contributed positively to equity. even after a drag from currency effects driven by a stronger Swedish currency on our Danish net assets. And our EPRA NRV continues to show steady improvement quarter after quarter. We see this as a reflection of our underlying resilience and the quality of our assets. Although we did not execute any major capital movements in this quarter, we've maintained a strong focus on readiness. Our financing strategy remains anchored in diversification, and we are continuously assessing opportunities to optimize cost and flexibility. Looking ahead, we believe volatility is likely to persist, but so will opportunity. Our approach is to stay proactive and well capitalized. Passing on to next slide, please. Our financial position remains strong. with all key metrics well within policy and covenant limits. During the quarter, we made the strategic decision to consolidate our credit ratings and continue with Fitch as our sole provider. This streamlining reflects our confidence in both our credit profile and in our ability to communicate it clearly to the market. Fitch also reaffirmed our BBB rating in February, recognition of our prudent financial management and long term focus. Combined with our stable balance sheet, this ensures continued access to capital on competitive terms. And next slide, please. We continue to recycle debt during the quarter, refinancing 650 million in bank loans and issuing a new 500 million bond at favorable terms. Three years, STIBOR plus 95 basis points. This reflects our strategy of actively optimizing our funding costs while maintaining a diversified maturity profile. Our liquidity position remains strong at 3.6 billion and we continue to manage it actively. In light of ongoing market volatility, we deliberately maintain a healthy liquidity buffer, not only to safeguard operations, but to remain agile and ready to act. At the same time, we ensure efficient use of that capital, generating 8 million in interest income during the quarter. And passing on to next slide, please. As economic uncertainty grows and European central banks move toward rate cuts, managing interest exposure remains, as always, a top priority. In the first quarter, a 700 million forward-started interest rate swap was activated, bringing our hedge ratio currently to 63%. This reinforces our ability to navigate rate volatility and supports stable cashflow generation ahead. And next slide and back to Jörgen. Thank you, David.

Our capital deployment has been on very low levels during this quarter, which means no acquisitions, just a few divestments of two smaller properties totaling to 25 millions. And development capex ended at 264 million. These investments relates, among others, to ongoing projects in Ramlösa and Malmö. And next slide, please. Property value stayed stable and ended up. in the period with a positive value change of 103 million SEC, which correlates to 0.2% of the total portfolio before adjustments. The average weighted valuation yield, exit yield for the portfolio is at 5.9% by the end of the period. And the EPRANET initial yield came into 5.6%. Next slide, please. And so some takeaways from today. For the first, Catena closes a quarter with very stable progress in a somewhat cautious market. Secondly, now we can see that all the profitable investments that we did last year generate a much higher income from property management per share, up 18% compared to last quarter. And the third point is we are very well positioned with favorable conditions for continued growth. And with that said, we will open up for Q&A. Please.