Cibus Nordic Real Estate AB (publ)

Good morning. Good morning, everybody. And welcome to our webcast for our quarter one 2025 results. Christian Fredriksen speaking here and joined, as always, by?

Pia-Lena Olofsson.

CFO. So welcome, everybody, and thank you for joining. Let's jump to the next slide, please. So my favorite slide, you will recognize this, converting food into yield. This is still what we do and are planning to continue to do. We are now doing it though on a pan-European basis. As you will see, what's the biggest news in this quarterly report is of course that we now have We are now reporting with the two acquisitions made earlier this year in Benelux, the former state's acquisition and the Danish portfolio of nine assets, which we closed also earlier this year. And those figures are included about two of three months of this quarter. So Siebes converting food into yield. Most of you will recognize what we're saying here, but what we do is we're a real estate company focused purely on daily goods properties. We're the only listed vehicle in the Nordics to do exactly this. There are a couple of European peers on other stock exchanges in the UK and some in Germany, but we're the only ones listed in the Nordic. We've been listed since 2018. We've been paying monthly dividends to our shareholders for this is the fifth consecutive year we've done that. And we've grown from a Finnish supermarket portfolio into the pan-European grocery real estate player that we are now. Our market cap in mid-April was about 1.1 billion euros. And our aim is to create these stable cash flows, which I'm going to talk about a bit later, and also increase earnings capacity per share, which is our key metric, which we follow internally very, very closely. So our properties in the Q1 2025. For those of you that have followed the pro forma, which we have talked about before, latest in our Q4 results, you will recognize many of these numbers. A point to make there is that the Forum Estates integration is going very, very well. I think we're very happy to see, of course, both that the integration is working well and also that the figures are in line with what we said in the performer. So you'll recognize most of these slides. We have now 640 properties, a property value of about 2.4 billion and an earnings capacity of 156.3 and 1.3 million square meters. And if you look at our tenant share of NOI, you will see that we have a very well diversified portfolio when it comes also to our NOI and and counterparty risks. You will see now that some of the household names from Europe, other parts of the Nordics have increased. And just summarizing some of the figures you will recognize before, 81% of our rental income is from non-cyclical daily goods tenants, which is a high and good number. 95% of our properties are anchored by daily goods tenants, and our average property size is 2,100 square meters, which is more or less a supermarket. We have a supermarket portfolio more or less in all of our countries. And 99% of our rental agreements are index linked, which is very important when it comes to growing organically just by itself. So we tend to follow what happens in the CPI linked agreements that that's how we grow some of our NOI. Our WALT, I know PLN will talk a bit more about this later, but in Belgium there's a statutory right for retail tenants to give every three years to give notice to leave the building. That gives us the opportunity now to present the WALT in two ways. what we call the Walt, which is 5.8 years, which is the long contract in Belgium, what's actually in the lease. And then a worst case scenario is the Walt B, where every single Belgian tenant would give their three years notice when they can. So the truth is somewhere in between. The underlying portfolio, the Nordic portfolio, has had a Walt of about five years since the company's inception and is stable around that figure. And 90% of our leases are net to triple net, which shelters us from property increases from the tenants or on the properties. And this is a win-win situation for us and the tenants, because for the tenants, these stores are a very important part of their operational infrastructure. They want to be able to manage the stores and the sites in the way that they seem fit. So the customers and deliveries can get in and out in an easy way, but they don't necessarily have to own the assets. So we're happy to own the assets with these net and triple net leases. Creating stable cash flows also comes from a large hedging ratio, 97% of our debt is interest hedge and we've been working throughout the quarter to extend that. So at the end of the quarter it's 2.7 years our interest hedge maturity. And when it comes to the actual quarterly figures, a very strong quarter, we're happy to report today. As you see, rental income is up 28% year on year. And please remember, this is only including the new acquisitions for two of three months of the first quarter. Net operating income up 30% on year. And then the profit from property management amounted to 38 billion euros, up from 12.2. Worth noting, of course, there's a very big other income post in here, which is a 20.5 million negative goodwill post. And this arised from the acquisition of the Forum Estates portfolio, where it was carried out at a discount. When it comes to earnings per tax, 31 million. And when it comes to the unrealized changes in value, which is minus 7.3 million in the quarter. People are saying that there's an echo in the call. Is this something we can be assisted with? Are people having problems with this? Let's continue and see if more people... Okay, our moderator says she hears everything perfectly. Okay, let's continue. So back to unrealized changes in values. So when it comes to the value changes in this quarter, values were up in all of our countries apart from Finland. So in six countries they were up and we're happy to see that it's stable yields and increasing slightly in those six markets. What we see in Finland is also stable yields and stable property market. What we see here is that there's two properties where our tenant Kesko has given notice that they sooner or later will leave. And this is really nothing out of the ordinary. This is normal course of our business. Some tenants come and some tenants go. In this case, there was a hit on value in Finland for these two assets. But I think partly it's normal course of business. And then I think we've already shown, as we've demonstrated and mentioned in press release from last week and also in the report, that we have active plans on how to manage these types of assets. in finland when the kesko left one of a building in helsinki we have now during the quarter sold it to another grocery chain um who will open their own store in that building so i think there's alternative use for our assets and i think we've we've proven that um so that's how we deal with these types of assets uh our app renov is almost a billion euros and 12.6 euros per share so this is our growth timeline um a bit of a hockey stick at the end of course there as seen with these large portfolios and a comment worth making here is that we look across all of our seven markets geographical markets and also in the rest of europe to see where we can get the best yield spread and the best um return for our shareholders That means that we grow only when we see cash earnings per share accretive transactions. Growth in itself is not a target we have, but we see the opportunities to grow right now. We are the only listed real estate company owning retail assets listed in Europe that are trading at a premium. And that, of course, gives us opportunities to grow. Earnings capacity per share as mentioned, this is the key metric for us and happy to see that this has now grown for the seventh consecutive quarter and the performer figure of 1.04 is what we hit dead on target now here in our Q1 earnings capacity. And that's 8% up year on year. And as mentioned, this grows through top line indexation growth, 99% index linked leases. We have lower margins, both on banks and bonds. And then there's large acquisitions, which we've carried out. So as a point here on the key takeaways from 2025, improved results, NY up 30%, as I mentioned, property from property management up to 38 million, including the negative goodwill. EPRA NRV per share up 8% and earnings capacity up 8% quarter on quarter, I should say, and then increased earnings capacity per share 8% year on year. Integration is going very well and delivering according to plan for our foreign states acquisition. In 2025, I'm happy to say that we've also already announced some transactions. We've made some accretive acquisitions in daily goods assets in both Belgium and in Finland. Very happy to see that we are working and cooperating so well with our new Belgian colleagues, which have also allowed us to sell a number of non-strategic assets in a couple of our markets. In Belgium, we've sold a number of DIY assets, which is not really converting food into yield. During the quarter, we've also been busy with refinancing of bank loans. As announced last week, we carried out a refinancing of about 19% of our total bank loans with more than 50 basis points lower margins. And then we carried out the bond earlier this year in January at 250 basis points spread. And that's moved the average credit margin of all debt with now in Q1 from 2.9% to 2.3%. Hedging, as mentioned, we've extended this to 2.7 years at attractive levels. We carried out a spread or a new hedging here in April when markets were really, really choppy and volatile and managed to get that at 1.97%, which was a great achievement at the time. we'll see where interest rates are going i mean it's it's uh anyone's guess what's going to be the strongest here of the factors of driving inflation with what's happening in the us and with what's happening with european defense spending etc or is will central banks cut interest rates because of recession risks and the recessions we see So the way we handle that is we prefer to have a large part of our debt hedged, interest rate hedged, and extending maturities on those to make sure that we can continue to deliver stable cash flows. Point seven here on the macro and geopolitics. I think it's worth saying that we're very happy and pleased that we're in the daily goods sector. It's non-cyclical and resilient sector. Not much food is imported from the US into the EU. won't be one of the most hard hit sectors from any of this continued tariff and trade wars. And also people need to buy and eat food irrespective of if it's a pandemic or if it's high inflation or if it's trade wars. So happy to be in this sector, stable cash flows and stable tenants with stable margins when it comes to the larger grocery chains. And then looking forward, we are happy that we have been given a 20% new mandate for the board to raise new equity. So happy that our owners have supported us there at the EGM, which is a tool we can use and if we see the right accretive acquisition opportunities. And then short on the transactions we have announced in 2025. In Q1, we bought a grocery store in Beringen. It's a Jumbo store. Jumbo is a Dutch retail chain, which is prevalent in Belgium. As mentioned, it's an 18-year lease. But then there's, of course, these three-year breaks. And the way that the Belgian system works, Belgian lease system works when tenants have this three-year break option is that The properties are let out more or less as shell and core, which means that the tenants often invest between 2000 and 2500 euros per square meter. So when tenants are that heavily invested, they're not likely to leave within short notice. They're invested heavily and they invest themselves long term into the buildings. We acquired also a store in Finland, a newly built or it's a store under construction with an 18-year lease with a major grocery chain in the town of Isami in the middle of Finland. So we made acquisitions for 9.3 million euros, which have been announced. Only one of those was in G1. The Isami store is in Q2. then when it comes to the divestments i'm happy that we're regenerating some of our internal capital as well we've sold these diy stores in belgium as mentioned led to the diy chain gamma for 2.10 10.2 million euros but we've also sold these grocery stores in helsinki which i mentioned one is a store which kesco is leaving and then immediately we sold that at a significantly higher value than book value uh we sold that to another grocery chain who wants to open a store and move in and i think that's exactly what we see and i've talked about before when it comes to grocery that more or less all of the major chains across europe want to grow in lidl in sweden for example they want to open 100 stores as soon as they can ikea is opening um a 10 15 20 new ikea maxis which is their hypermarket so So there's a lot of pressure when it comes to opening new stores and wanting more space. And I think if you compare this to other sectors where there's a bit of questions on what's occupancy rates, what's the demand going forward, when it comes to grocery, demand is very strong for these locations or for this store type. In Q2, we also sold a former coop store in Eslav, Sweden, where we chose to sell it to the municipality so they can continue to do an urban development of that site. So that's another example of the alternative use for our property. So the takeaway and conclusion here is in all these countries, we managed to sell properties at above book values. then over to oh yes thank you thank you just yes just a quick point on the one plus joint venture um which you'll find in our reports as well this is a very interesting new source of growth for cebus this is something that forum of states had set up with this developer with the developer ts33 And what this joint venture is, we own about 31%. It's about five retail properties there. And what TS33 does is it builds newly built retail assets or grocery assets. And when the grocery assets are completed, this joint venture has the right to first refusal to purchase these new grocery stores. And OnePlus has a strong pipeline of these supermarket opportunities, and it is a potential additional source of growth. And it's well governed, and we can say yes and no to things, which is great. Over to you, Pelle.