Catena AB (publ)

Welcome to the conference call. For the first part of the conference call, the participants will be in listen-only mode. During the questions and answer session, participants are able to ask questions by dialing star 5 on their telephone keypad. Now I will hand the conference over to the speakers. Please go ahead.

Hi and very welcome to Katana's presentation for the Q2 report. The agenda is, as always, first a summary, then a business overview, some updates from the business, some sustainability numbers, the financial update, a takeaway from today, and then we end up with some Q&A, hopefully. First of all, a summary of the Q2 report. We report the 17% increase in rental income ended up at the 1,510,000,000 SEX driven mostly by acquisitions, but also by our CPI-linked contracts. Profits from property management increased by 14% in total, and per share, it was up 5.2%. Isolated for the second quarter, the increase per share was up 10.9%. Our NRV came in at 461.28 SEC. The balance sheet is still solid with an LTV at 44.5%. And the 1st of July, we disposed the portfolio to MSS, which leads to 43.9% in LTV as we speak. The occupancy rate has dropped to 94.6%. Even though we have some tenants moving out during the quarter, we are positive to come back to the levels at 95% or above in the coming quarters. Our whale is now at 7.1 years, which means that we have a very strong cash flow secured for many years ahead. After closing the deal with Urban Partners at the 1st of April, we can confirm that we have established a Nordic platform with a strong offering to the market. Next slide, please. The business overview and next slide. The market update preliminary figures shows that the transaction volume in the industrial segment amounted to 23.5 billion SEK during the first half of the year. This indicates strong interest in the segment and the high volume is primarily attributable to the major transaction that Catena carried out with Dolban Partners. We have a sense that there will continue to be more transactions opportunities in the second half of the year based on what brokers are currently working on. Regarding e-commerce, there was a clear growth in the first quarter of 2026 up 7%, which speaks in favor for our segment and for more demand in the future. We sense a slightly more positive atmosphere regarding discussions with potential customers and existing customers to start new projects. That said, we still see it as a bonus if we can sign any new contracts in the near future regarding our land bank. Next slide, please. Regarding our customer portfolio, we can see some clear changes after the 1st of April. DSV has moved from 18% to 15%, and DAL Sverige has entered the list with a 2% share. Next slide. The total value of the portfolio is 55.8 billion SEK. This is the first quarter where we have Finland as a new region. The value there is 3.6 billion SEK, and we see more opportunities to grow there going forward. The average lettable square meter has a value of 13,559 SEK. The total value will decline with 600 millions at the 1st of July due to the divestment to MECs that I mentioned before. Next slide, the business update. As I said before, now we are in Finland. Except from the portfolio we acquired from Urban Partners, we have made two additional acquisitions recently, more about them later on. Henrik Eskolin is appointed as a regional manager and commenced in August after the summer. We are, as we speak, looking into more opportunities in Finland and are overall optimistic to grow more there going forward. Next slide, please. At the end of May, we have acquired a modern logistic property in direct proximity to Helsinki Airport in Aviapolis, Vanta. The property serves the Carmel Finland headquarters as well as the company's main logistics and service hub in the region. And the investment amounts to approximately 575 million SEK with an initial yield estimated to 6%. Next slide, please. At the same week, actually, we also acquired a strategically located logistics property in Vanta, adjacent to the Helsinki airport. The property serves as DHL's principal logistic hub in Finland, and the estimate yield is also here, around 6%. Next slide, please. As we mentioned before, we have closed the deal with MSS at the 1st of July, bringing down the LTV to 43.9%. The agreed price was 8% above our book values. The properties Vala 615 in Kungsbacka and Glasblåsan 14 in Linköping have also been sold during the period, comprising a total lettable area of approximately 35,000 square meters. And the two properties have been divested at the combined property value of approximately 430 million SEK. Annual rental value amounts to approximately 33 million. and the agreed purchase price was 9% above hooked value. Next slide, please. This table presents Catena earnings capacity on a 12-month basis. Note that the increase in earnings capacity per share at almost 29 SEC per share compared to 26.25 SEC one year ago, an increase with more than 10%. Next slide, please. Our ongoing project portfolio totals to around 359 million SEK, where 125 million is remaining investments. When all is completed, we will add 18,000 square meters to the portfolio. And next slide, please. Regarding our land bank, we are still waiting for decision from the Land and Environment Court regarding the plan outside In Örebro, the municipality decided on the sowing plan during Q2, and the decision was positive, but the minority had the right to postpone the decision for another month or so. So we have to be patient and wait again. In Järna, we have found a lot of challenges regarding nature values. and we expect a delay of two to three years before we can intensify the zoning job. Next slide, please. Looking at our leasing operations, our net leasing in terms of net moving in and moving out during the quarter came in negative with 42 million SEK. Our whale has increased to 7.1 years. and the letting ratio is at 94.6%. As I just said, we have had a negative quarter in terms of tenants that moved out, and that has led to a lower letting ratio. This is now dramatic, and we have already signed some new contracts on the vacancies, and we believe that we soon can come up to at least 95% again. And the overall feeling is that there is a higher activity in the letting market as we speak, with more ongoing discussions compared to last year. Next slide. Some sustainability. The scope freeze continuing to decrease on a 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 79%. Total installed solar panels output on our roofs is now about 89 MWh. And now over to Magnus for some financial update. And next slide, please.

Thank you, Jørgen. This slide shows the strength in our underlying earnings with solid year-on-year growth across all key metrics. Rental income is up 17%, mainly driven by acquisitions. net operating surplus increased by 17% and profit from property management rose by 14%. Profit from property management per share is up 5.2% to 13.96 Swedish kronor per share, underlining our ability to translate top-line growth into shareholder value. The Capena model continues to deliver predictable, resilient earnings with strong profitability. Next slide, please. This slide highlights the composition of our rental income growth in Q2, 2026. As just mentioned, total rental income increased by 17% year over year. The largest contributor was acquisitions, accounting for 13.2 percentage points of the growth. Our completed development projects added 2.5 percentage points, consisting mainly of new facilities in Ramla, Sahelsingborg, Malmö and Gothenburg, all leased to strong and well-known tenants. Like for like, rental income rose by 2.1%, built up by CPI-linked indexation, renegotiated rental agreements, as well as increased property tax and media costs, which are re-invoiced to our tenants. All in all, this underlines our ability to grow through multiple channels, strategic acquisitions, value adding development and strong day-to-day operations. Next slide, please. Let's turn to our capital structure. The second quarter of 2026 has been characterized by geopolitical uncertainty that has increased the volatility on the financial market. Despite this, there has been a pickup in real estate transactions and increased activity in the credit markets that are now back at levels seen before the outbreak of the war in Iran. However, global long-term structural uncertainties still remain to some extent, and it's important that we keep being prepared in case of increased volatility. At the end of Q2, our equity ratio stood at 47%, a balance level that we consider supports our strategic flexibility. EPRA NOV per share increased to 461 SEC excluding dividends, an increase of 7.7% compared to a year ago. This shows our ability to create shareholder value over time, even as shareholder returns are being realized. Passing on to the next slide. Let's move on to our financial position. We continue to demonstrate strong financial control with all key metrics within policy levels even immediately after the large acquisition. This is a sign of that we continue to maintain a prudent leverage profile. Net debt to EBITDA came in at 8.9 times, interest coverage at 3.7 times, and loan to value at 44.5%. These figures reflect both a solid capital structure and strong underlying cash flows that ensures continued access to capital on competitive terms if needed when opportunities arise. Next slide, please. Let's have a look at our debt and liquidity management. We continue to remain focused on maintaining and securing funding on competitive terms. In connection with the acquisition on April the 1st, we drew down a 12 plus 6 months term loan bridge facility that in combination with the proceeds from the directed equity rates we did in January was utilized for the short-term funding of the acquisition. We immediately started the process of replacing the bridge facility with long-term funding and the first take-out was done via the issuance of 3.25 billion SEK in unsecured green bonds. The take-out for the remaining part will be done via the bank market. The process is well progressed and we aim to have the bridge facility closed in the coming days. Our average debt maturity is 3.5 years, currently compressed by the short-term bridge facility. Liquidity is strong, and a liquidity ratio above 1, excluding the effect of the short-term bridge facility.