Cibus Nordic Real Estate AB (publ)

Good morning. Good morning, everybody. And welcome to our webcast for our quarter one 2025 results. Christian Ferdicksen 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 on a pan-European basis. As you will see, 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 Venalux, 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 or three months of this quarter. So CBIS 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 and 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. A 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 pro forma. 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 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. 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 so that that's how we grow some of our NOI. Our WALT, I know P. Lennon 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 represent 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 it's 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 nets and triple nets leases. Creating stable cash flows also comes from a large hedging ratio. 97% of our debt is interest hedged, 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 or three months of the first quarter. Net operating income up 30% year 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 arise from the acquisition of the Forum of States 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... Sorry, just to read. Are people... 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 are interested. OK, our moderator says she hears everything perfectly. OK, 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 it's 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 Kesko left one building in Helsinki, we have now during the quarter sold it to another grocery chain who will open their own store in that building. So, I think there's alternative use for our assets. And I think we've proven that. So, that's how we deal with these types of assets. Our EPRAN OV is almost a billion euros and 12.6 euros per share. So, this is our growth timeline. A bit of a hockey stick at the end, of course, 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 return for our shareholders. That means that we grow only when we see cash earnings per share created 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 we're happy to see that this has now grown for the seventh consecutive quarter. And the former 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. 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 estates 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're 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 a 250 basis points spread. And that's moved the average credit margin of all debt with now in Q1 from .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 January, 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. Now, we'll see where interest rates are going. I mean, it's 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 will central banks cut interest rates because of recession risks and the recession we're seeing? So the way we handle that is we prefer to be very, 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. And it's 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. So 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 we're 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've announced in 2025. In Q1, we bought a grocery store in Behringen. 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 Belgium lease system works, when tenants have this three year lease, or a 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 longterm 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 Isalmi, in the middle of Finland. So we made acquisitions for 9.3 million euros, which have been announced. Only one of those was in Q1. The Isalmi store is in Q2. And 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. That's led to the DIY chain Gamma for 10.2 million euros. But we've also sold these grocery stores in Helsinki, which I mentioned. One is a store which Kesko is leaving. And then immediately we sold that at a significantly higher value than book value. 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 a hundred stores as soon as they can. Ica is opening 10, 15, 20 new Ica Maxis, which is their hypermarket. So there's a lot of pressure when it comes to opening new stores and wanting more space. And I think this, 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 Coup store in Aeslaf, 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 we managed the takeaway in conclusion here is in all these countries, we've been managed to sell properties at above book values. And then over to, oh yes, thank you, thank you. I just, yes, just a quick point on the OnePlus joint venture, 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 Estates 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 no to yes and no to things, which is great. Now over to you, Helena.

Thank you. So looking at the net operating income, it was 36.6 million euros for the first quarter. Administration costs now include the office in Ghent with 12 employees from Forum Estates. We have a non-recurring income item of plus 20.5 million euros which comprises of the negative goodwill, which arose in connection with acquisition of Forum Estates since the acquisition was made to a discount to the net assets. Net financial items includes an exchange rate change of minus 0.9 million euros, mainly due to the stronger CEAC. Profit for property management, excluding non-recurring items and exchange rate differences was 18.4 million euros. We sold two properties in Finland, which gave a realized change in investment properties of plus 2.4 million euros. We had somewhat increased underlying property value in all countries except Finland, as Christian mentioned, where we had a negative unrealized changes, mainly due to two properties where Kesko had announced notice of future termination. Earnings for the quarter was 31 million euros or 0.42 euros per share. Earnings capacity the first of, sorry, the earnings capacity the first of April 2025 serves a net operating income of 156.3 million euros, which is an increase of 37% since the first of April 2024. Profit from property management minus the expense for the hybrid bond and adding back non-cash items amounted to 79.2 million euros, 1.4 euros per share, which is an increase of 8% since the first of April 2024. After the period, as we announced the 17th of April, we announced the outcome of the refinancing of bank loans of 232.5 million euros at reduced credit margins by more than 0.5 percentage points. Since the earnings capacity is a snapshot, the first of April, the lower financing costs are not included in the earnings capacity. Looking at the net operating income, the effect of changes in occupancy was fairly unchanged since the Q4 at minus 2%. Indexation increased in a Y with plus 1.9%. And as you can see, it is the acquisition that is mainly driving growth. Cibo segments is countries and we now have seven countries, Belgium, Netherlands, and the Luxembourg is part of the group since the 27th of January this year. So they're part of the NOI will be higher in the second quarter. Our property value, Finland has 47%, Denmark 17% and Belgium is the third largest with 16%. Looking at the balance sheet at the end of the first quarter, property value was 2.4 billion euros, secure debt 1.2 billion euros, giving a loan to value on secure debt of 50.6%. Unsecured bonds was 245 million euros, giving a net loan to value of 58.7%. Net asset value, EPRNRB was 965 million euros or 12.6 euros per share, which is an increase of 8% since the last quarter. The weighted average remaining lease time is shown in the graph on the top, both without Belgian termination rights, which then is a vote of 5.8 years or with Belgian termination rights, which then is 4.2 years. In Belgium, as Christian said, the tenants or retail properties have the right to terminate the lease every third year. And to minimize that risk, this is usually offset by that the tenants invest significantly in the premises and thus want to stay. Looking at funding, as you can see, bank financing is still the largest part of Sybus external funding with 81%. And as we said, we have done refinancing after the period at much lower margins. We have a senior security fund, we have our bonds, that is 16% of our financing. And the 10th of January this year, we did a new bond of 50 million euros, which was issued with a four year tender at a margin of 250 basis points over Eurobore. For Sybus, stable cash flows is very important. And Sybus continue to have a high degree of hedging with 97% of our loans hedged. Based on the earnest capacity and taking all the interest rate hedging in consideration, an increase of the market interest rate with one percentage point would be a significant increase and a decrease of one percentage point of market rates would affect profit with plus 2.7 million euros. And why an interest rate reduction has a greater impact is due to that we have interest rate caps, which is about 42% of the hedging on loans. Looking at the key metrics, NetLTV was 58.7%. And since the funds raised through the director chair user has been deployed, it's slightly higher than before. And also that we have the new bond. The covenant in the MTM program is 70% NetLTV. So good health to all of you. And we have a bedroom to that. Interest rate coverage ratio was 2.3 times and also well above the covenant of 1.5 times. The net debt to EBITDA increased in the quarter due to the redone the acquisitions, which has increased the debt while the EBITDA is built over time. And if you use the earnings capacity, the forward-looking net debt EBITDA is 10 times. CBUS generate stable cash flows so we can pay out the dividend to our shareholders on a monthly basis. This year we have a five-year anniversary of paying out monthly dividends. At the AGM, they decided on an unchanged dividend of 0.90 euros per share, paid out in 12 installments. And the dividend yield on the share price at the end of the quarter was 6.9%. Looking at the share price performance, the share price at the end of the quarter was 148.05 SEK per share. And CBUS is a very liquid share with more than twice the average than other real estate companies with a market cap of 10 billion SEK at Nasdaq Stockholm. I'm not having an easy-witted computer and jumping. So just a good snapshot of our shareholders, which we are very proud of, and they've been with us for a very long time. And we're also happy that we have 55,000 shareholders. Over to you, Christian.

Thank you. Thank you. So speaking a bit about the future, let's jump and talk about our common future on this globe, ESG. What we try and do is we want to provide sustainable marketplaces. ESG is an important factor for real estate. Real estate in general is one of the... One of our heating of real estate is an important contributor to global greenhouse gases, of course. CBUS has a path to climate neutrality, 2030, to become climate neutral. We have reported in our annual report for 2024, we voluntarily reported under the CSRD reporting directive. And among other things, we can show there that 49% of our assets are taxonomy aligned, which is up from 31%. And this is, by the way, at the end of the year. These are figures from the Q4 figures. What's interesting as well is that we have 79%, almost 80% of our tenants have their own SBTI goals, which is what we've been talking about before, is that our tenants are consumer-facing companies, grocery tenants with large aspirations within ESG themselves. And that feels great. That, of course, returns are the most important thing for us. And let's not forget that. But if we can do some good along the way, that's great. When it comes to the financing, we, of course, have our green and sustainable financing framework in place. But I think what's worth listing here as well is the S in ESG. These assets and the supermarkets and supermarket chains, they are a part of social infrastructure in our societies. An important part of this resilient society is feeding a population. People need to eat in pandemics and people in times of crisis. And as I wrote in the CEO comments, I think a perfect example of this is what we see in Finland, where the Finnish government and the grocery chains have launched an initiative to make 300 grocery stores across the country into self-sufficient distribution points for grocery, even if there's no electricity. So the government and the chains are cooperating in making sure that these sites and these stores continue to operate, even if there's power shortage, even if it's times of crisis, and a place where you can meet, get information, and also charge your mobile phones, et cetera. So a very interesting initiative there in Finland, which kind of, I think, proves the point. This is an important part of infrastructure. Also, mental health, a place to meet for many people. The supermarket is the place to meet if you live alone. Slow cashiering, we've talked about before. Important for us and what we can add to this is to see what we can do to create safe and accessible marketplaces for everybody. And then when it comes to what we're looking at moving forward, I think these are the main six areas. We want to continue to grow our earnings capacity per share in all parts of the business, and we grow the earnings capacity, as you've seen, both for acquisitions and through organic growth, through indexation and cost control, et cetera. So it's all about creating that earnings capacity per share. Continue to work with and further integrate our platform for growth in the Benelux, the Forum Estates platform. We will continue to work with balance sheet optimization, refinancing, and hedging. Very important, of course, now with what we're seeing, the turmoil and volatility in the financial markets. We want to continue to create these stable cash flows and deliver to our shareholders. We want to look at cash earnings per share creative transactions. We see interesting opportunities in our seven existing markets, and we're actively evaluating other opportunities and other markets in Europe. I'm proud of the team. Working very hard, we're a small team. We used to be 12 people. We are now 24 with the Benelux team, a small but diligent and forward-leaning team, which are very proud of what we're doing. And I'm very happy to see that we've carried out these transactions earlier this year with our Benelux team, and the strong Nordic teams continue to deliver as well. And lastly, but definitely not least, we're committed to deliver shareholder value by continuing to convert food into yield. That's just a commercial break, that's fine. Let's move to the Q&A.

If you wish to ask a question, please dial pound key five on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial pound key six on your telephone keypad. The next question comes from Oscar Lindquist from ABG Sundal Collier. Please go ahead.

Hi, good morning. A couple of questions from me. If we start on the transactions announced last week, are there any more sort of non-core assets that you would like to divest from the former state's portfolio?

Yes, there are a number of assets. They had slightly less grocery converting food into yield assets than we do, we as in Siebes Nordic. So yes, there are a couple of more assets we're looking into and how we should treat them going forward. But I mean, there's strong cash flowing assets and with strong tenants, just not kind of non-strategic for us, as we like to convert food into yield, but there's nothing wrong with them and they're cash-free producing. So the price needs to be right for us. Could you give any indication of the volume here? No, not really. You'll hear about it when and when it happens, then and when it happens.

Yeah,

sure.

And also on the transactions that you announced, could you give a sort of net impact on rental income?

We're not giving that figure. For the divestments

and acquisitions?

No, we're not giving that figure, but so far they're minor acquisitions, of course, two acquisitions of two stores. So kind of small impact so far from acquisitions this year.

Okay. And I'm correct in assuming that these transactions are not reflected in the earnings capacity, right?

Yes, the jumbo asset in Behringen is, because we closed that during Q1, and the earnings capacity is forward-looking from 1st of April.

Okay. And then on acquisitions, can you give any insights here on where you're looking, what markets look the most interesting, and do you have any ongoing discussions?

No, I think we're looking, I think the strength that Sebus has being in seven countries and being able to look at more countries is that we are investigating where we can find the best return for our shareholders. As communicated previously, what we're looking for is stable grocery markets, I mean, stable in that the tenants are performing well, there's dynamics among the tenants, which works well. We're also looking for kind of stable economies and stable real estate guidelines and rules and zoning plans, et cetera. But we don't necessarily, as many other investors, maybe need to look at so stable real estate markets. I mean, we're a buy and hold player. Many other investors are kind of need to time things, time buying and selling. As we're a buy and hold player, we feel we can look a bit more freely there, as long as the dynamics are right. And the assets bought are cash earnings per share created from day one.

Okay. And then on refinancing, you refinanced 20% approximately of your bank debt now in April. And the margin on average was down 50 basis points. How would you say that this translates to the remainder of your bank debt? Do you have the same potential here?

I mean, we do have good dialogue with the banks, and they are continuing to giving us support. I want to have more volume. I want to do more business with Sibyl. So, yes, it's looking good, but we will come back with refinance. We do also going forward. But we have positive dialogue with the banks.

Okay. And then one final question on the new JV1+. Could you give an indication of, should we expect to see some material contributions in the near term, or how's the pipeline looking here?

I wouldn't say material contributions. It's a pretty small joint venture. It holds five assets right now. And the developer is not a huge developer, but they have very good relations with the grocers. So it's more of a future time, a future potential pipeline of new assets. I want to lift it forward also, because it is an interesting fountain of new potential growth. And we're happy to look into it, and we're looking at the opportunities out there in the markets.

Thank you. Thank you.

Hi, Christian and Pia-Lina. Thanks for a great presentation. Starting with the occupancy rate now, about 95%. How does that compare between Nordic and continental European portfolios of yours?

Yeah, I can take that. We had higher occupation rates in the former States deal, which is contributing to the higher occupation rate that we have in the quarter.

But otherwise it's quite stable in

the Nordics and the other parts also, but the increase in occupation was due to the former States deal.

A comment on the Nordic side of things is, I mean, it's business as usual. We extend leases with grocery players. We've let some of non-grocery space as and when there is some vacancies. But as Pia-Lina mentioned, it's a stable quarter, as expected. Sounds good. And

then just a final question on refinancing of bank loans, as mentioned, what is the average secured credit margin now after last week's announcement?

I mean, we haven't commented on that, unfortunately, so I cannot do it on this call. But of course, it will have an effect, which we will disclose in the Q2 report.

Okay, perfect. That was all. Thank you.

Thank you, Viktor.

The next question comes from Svante Krokfors from Nordia. Please go ahead.

Good morning. Svante from Nordia. Thank you, Kristian, Pia-Lina, for the presentation. Actually, most of my questions have already been answered, but a couple of them left. So perhaps first on Johanna, been integrating former States for some months. Is there any negative or for that matter positive surprises that you have encountered or has everything been as planned?

Everything has been as planned. I think, I mean, we did a very extensive due diligence during 2024. I'm very happy that the figures, of course, not surprising to us, but now we can present that the figures really match up to what we've said. I think a positive surprise, I was surprised. I'm happy to see that we've managed to do these transactions so fast. And hit the really hit the ground running together in selling these non-strategic assets and also buying one asset in Belgium.

Thank you. And then a question a bit touching on an earlier question here, but I mean, you now have authority to issue 20% new shares that would enable around about 500 million euros in acquisitions. Would you would you look at completely new markets or would you primarily use the base that you have in in former states?

I would say both. I would say when if and when we find the right cash earnings, especially creative opportunities, then as long as it meets the criteria mentioned earlier about new markets, then we would be happy to enter a new market. I think the former states acquisition and also the large Danix acquisitions we did kind of prove the point that we are we are able to do so. But of course, the company should grow in kind of a steady flow if possible. But I feel that we've managed to integrate former states. That's worked very well. And if the opportunities arise, then we're happy to look at other things as well.

Thank you. And then perhaps final one. Do you have any comments on on changes in the transaction market in in your operating countries recently or is it similar? It was three months ago.

I know that's a good question. Thanks. I forgot to touch upon that in the presentation. I summarizing Sweden. Very hot. Lots of lots of institutional private investors chasing grocery assets, retail parks with grocery in it. We mostly only want the grocery, not the other things, the building materials or the gardening or the sporting goods. But there's a lot of investors, both institutional and also private individuals, both private equity and also more kind of syndicates looking at these assets in Sweden. We see the same thing in Denmark. Very active market. And the Netherlands is a very active market when it comes to real estate transactions in general and for our segments with with various types of pooled capital, buying a number of of these grocery assets. So I'd say most of the transactions happened, of course, before all the major turmoil in the markets from after the second of April. But in general, lots of interest for supermarkets. And in my view, supermarkets are and should be one of the most resilient sectors when it comes to the trade wars and other things happening because they're high yielding, the stable tenants. Everyone needs to eat and buy food, the small liquid assets or can be small. It's the ones we target and should be a very interesting segment, property segment for many going forward.

OK, thank you. That is all from me.

Thank you.

The next question comes from Benci Alia from Kempen. Please go ahead.

Hi, good morning, Christian and Pia Elena. Hope you had a wonderful Christmas break. A couple of questions for me. First one, of course, I appreciate that you're selling non-core assets and vacant assets. But would you consider selling some more core assets as long as you can sell them at a premium?

The price is the price is always of interest for us. We are a buy and hold player. We enjoy the cash flow and the stability of those cash flows. So so, yeah, go ahead and make us an offer and we'll see how we react. All right. And then a bit more concretely, I think we're we're on a trajectory where where we're creating a more diversified portfolio. We're becoming a larger company. There are certain economies of scale, both in diversification and also becoming slightly larger. So so it would have to be something significant of interest for us to to divest some of our core assets. I think one should expect this more to look at kind of continuing to divest non core assets and investing into more core assets.

All right. And then on the Kesco assets on the notice of termination, is this something linked more specifically to Tesco or is it just a coincidence? So I'm asking if or does Tesco want to be the owner of its assets or is it more similar story that they can just plan to build or they can build a store nearby?

Yeah, I think there's no in my view, there's no cross read that this happens to be Kesco. This is a normal course of business for a grocer. I was seven years at ECA Real Estate, as you know. And sometimes you close a store because you want a bigger store. Sometimes there's some new infrastructure in a town, a new roundabout, which is a slightly better retail location for for what you're planning as a grocer in that specific location. Perhaps you move to a demographic location, which is closer to your price strategy. If if you're a high end or low end, the discounted maybe demographics change and income changes in the local markets. So there's always a bit of movement. And I think these are examples of that. But when they're there, they're doing something else in those locations. And as mentioned in this store that Kesco did leave, we could immediately sell it to another grocer for them to open their own store. When it comes to Kesco, they both lease, of course, with us almost 150 assets. They own some of their assets. They own through the joint venture, which they had with AMF and Ilmar, which they now have with Ilmar and their own association, the retail association. So they own and let just as most many grocers do.

All right. And then maybe just one more of a clarification question on the like for like. I see that the vacancy impact is minus two percent. But then, of course, if I look at your vacancy and I know it's a snapshot and impacted by the former state's acquisition. But then, as you mentioned earlier, the Nordic vacancy is more or less stable. So then one doesn't really match the other. Could you add a bit more color there? I

mean, both in Q3 and Q4, that figure was one point nine percent and now it's two percent. So it's it's it's very, very stable, so to say. So it's not a dramatic jump in any way, you can say. So overall, it's stable in the Nordics and on the comparable portfolio, as you can see. So, you know,

so in the quarter, not much happens. Zero point one percentage points.

Exactly. OK, so this is more from, let's say Q2 last year.

Yes, exactly. That figure that that's comparing the earnings capacity first of January 2025. Sorry, first of April 2025 with first of April 2024. And and in 2024, we had another number of rental guarantees, for example, in Denmark, which which ran out and thereby create vacancies. And those are the rental guarantees which we knew at some point this would be extremely difficult to to let. So we knew that already when we purchased that portfolio in Denmark.

OK, very clear. Thank you for all the answers.

Thank you. Thank

you.

We have no written questions, but we have one. Well, we have one question regarding the presentation that this will, of course, be available on the Web site. Sorry for the echo that some has, but you can listen in on the presentation on our Web site shortly later on today. It will be available.

Great. Well, thank you, everyone, for joining us today. And all the best for a continued 2025. Thank you.

Thank you.

Bye.