Catena AB (publ)

that has a turnover of more than 8 billion SEK has only this location for all of the outgoing goods. And next slide, please. And the other day, or actually yesterday, we signed an agreement to acquire El Giganten's distribution and central warehouse in Jönköping. The property is located opposite our newly built facility that El Giganten rent from us. Closing will take place on 1st of September and after that we will have about 200,000 square meters of logistic space leased to El Gigante. And the investment is 1,275,000,000 SEK before deduction of deferred tax and has an estimated net operating income of approximately 80,000,000 SEK. And this transaction was an off-market and shows that we can act as fast-footed as anyone else. And we really enjoyed doing the transaction together with Neon. Next slide, please. Our ongoing project portfolio totals to around 1.2 billion SEC, where 400 million is remaining investment. When all is completed, we will add another 91,000 square meter to the portfolio, and the yield of those projects is around 7%. Next slide. Regarding our land bank and future development, we are approaching the adoption of new zoning plans for two of the areas, namely Skjæra in Ängelholm, which the municipality will decide on in September, and in Örebro, where the municipality is expected to adopt the plan at the end of Q4. So that's positive for us. Next slide, please. Looking at our leasing operations, our net leasing came in with plus 63 millions for the first six months, and for the second quarter, it was plus 16 millions. Our whale is at 6.6 years, and the letting ratio is at 96.5%. Next slide, please. And over to the sustainability. Next slide again. The environmentally certified area is now 57% and will increase further as projects and new acquisitions will be finalized. The scope three is now decreasing on 12 month rolling basis due to less projects. We continue to maintain a high level of EU taxonomy alignment. For example, our turnover came in at 76%. Produced energy from solar panels reached around 23,000 megawatt hour on rolling 12-month basis. Total installed output on our roofs is now above 71 megawatt. And now over to David for some financial update. Next slide.

Thank you, Jörgen. And good morning to everyone. This slide highlights the continued strength in our underlying earnings with solid year-on-year growth across all key metrics. Rental income, as Jörgen mentioned earlier, is up by 26%, mainly driven by acquisitions. Net operating surplus increased by 31% and profit from property management rose by 32%, reflecting both scalability and cost control, which we expect to continue going forward. Earnings per share from property management grew by 16% to 13.27 crowns, underlining our ability to translate top line growth into shareholder value. While not shown here, our earnings capacity, we should say, implies 26.3 crowns per share on a full year basis. That's 15% above the level we presented a year ago. The model continues to deliver predictable, resilient earnings with operational leverage. Let's move to the next slide. And this slide breaks down the key drivers behind our rental income growth for the first half of 2025. As I just mentioned, total rental income, which increased by 26% year over year, the largest contributor was acquisitions, accounting for more than 22% of that growth. Our completed development projects added 4.5 percentage points, including new facilities in Jönköping and the Gothenburg region, both leased to well-known tenants in retail and food service. Like for like, rental income rose by 2%, mainly reflecting CPI-linked indexation. Altogether, this outlines our ability to grow through multiple channels, strategic acquisitions, value-adding development, and strong day-to-day operations. Next slide, please. And then let's turn to the capital structure. The second quarter brought a noticeable pickup in real estate transactions and increased activity in the credit markets as well. Toward the end of the quarter, we saw growing optimism, partly fueled by a reallocation of capital flows from the US to Europe. That said, long-term structural uncertainties remain, and we are prepared for potential renewed volatility. At the end of the second quarter, our equity ratio stood at 52%, which we believe is a balanced level that supports strategic flexibility. EPRA NRV per share increased to 428 crowns, calculated after reserving nine crowns per share for dividends, half of which was paid out in cash during the quarter. And this reflects continued value creation, even as shareholder returns are being realized as well. In short, we see a market that's beginning to open up and we remain our focus on readiness. Passing on to next slide, please. And then let's move on to our financial position. We continue to demonstrate strong financial control with all key metrics well within policy levels. Net debt to EBITDA came in at 7.6 times, interest coverage at 4 times, and loan-to-value at 38.6%. These are healthy figures and they reflect both a solid capital structure and strong underlining cash flow. Importantly, this gives us significant headroom to our financial covenants and the ability to move on new investments without compromising financial resilience. Next slide, please. Let's take a look then at our debt and liquidity management specifically. We remain our focus on maintaining and securing funding on competitive terms. During the quarter, we updated our MTM program and increased the framework to 8 billion, strengthening our platform for both future growth and refinancing opportunities. We issued 450 million in secured bonds during the quarter with a two year maturity and pricing at STIBOR three months plus 83 basis points. In early July, after the end of the second quarter, we also completed a 1 billion senior unsecured bond transaction split across three and five year maturities. The terms reflect the market's continued confidence in our credit quality. This issuance is not included in the balance sheet of Q2, but was structured to give us additional flexibility for our upcoming investments or refinancing activities. Our average debt maturity remains solid at 4.8 years. Liquidity is strong with 3.1 billion in cash and liquidity ratio well above 1%. We're also generating positive returns from the liquidity with 30 million in interest income during the quarter. Passing on to next slide, please. We entered Q2 with an upward sloping yield curve again. Markets are pricing that Riksbank, the Swedish one, is nearing the end of its cutting cycle. The two-year swap now trades below the policy rate. Meanwhile, long rates remain a bit more elevated, reflecting more stable expectations on growth and inflation, as well as a return on risk premium in longer maturities. As of the balance date, 61% of outstanding debt carried fixed interest. Our current and average interest cost of 3.2% broadly reflects prevailing market conditions for a full refinancing of the portfolio, including derivatives. This reflects a timely and balanced interest management approach, though there still remains headroom for further optimization. Next slide and back to you, Juergen.

Thank you, David. Our capital deployment is for the first half year divided into acquisitions, 414 million SEC, and development, 570 million SEC. And we have at the same time divested properties for 98 million SEC. And next slide, please. Property values stayed stable and ended up the period with a positive value change of 174 million SEC, which correlates to 0.4% 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 EPRA net initial yield came in at 5.6%. And next slide, please. So a couple of takeaways from today. And for the first, Catena closes the half year with solid numbers in a somewhat cautious market. And second, we have presented new acquisitions for almost 2 billion SEC during 2025 so far. So our growth journey continues. And with that said, we would like to open up for a Q&A.