Cibus Nordic Real Estate AB (publ)

Welcome to the CIBAS Q3 2025 report presentation. For the first part of the presentation, participants will be in listen-only mode. During the questions and answers session, participants are able to ask questions by dialing pound key 5 on their telephone keypad. If you are listening to the presentation via webcast, you can ask written questions using the form below. Now, I will hand the conference over to CEO Christian Fredrickson and CFO Pia-Lena Olofsson. Please go ahead.

Good morning everyone and thank you for dialing in and listening to our Q3 presentation for our 2025 Q3 results. Let's dive straight into things. I'm speaking to you today, Christian Fredriksson now, CEO of the company.

I'm joined here by... Fyriana Olofsson, CFO.

And we're calling to you from our head office here in Stockholm. And the picture here is of us comparing apples to apples in one of our stores down in the Benelux. And Albert Heim has happened to be. And as you know, our slogan, converting food into yield, says exactly what we do. But before we dive into the slides, I thought I'd just summarize the quarter in two parts. main points. But it's another stable quarter for underlying business. Profit from property management is up 54% year-on-year, which is 9% per share year-on-year, excluding one-offs, which were in the comparable quarter one year ago. Our earnings capacity is up 8% year-on-year per share, so 8% up year-on-year per share. And that's mainly due to accretive acquisitions coming through and also lower financing costs. So then back a bit more on what CBUS is, Converting Food into Yield. We own real estate, which is led to daily goods operators in seven countries. We focus purely on daily goods properties. We're the only listed vehicle in the Nordics to have this large share of grocery daily goods assets. We've been listed since 2018. We grew from Finland, a supermarket portfolio is there, into now a pan-European platform. Our main aim is to create stable cash flows and increase the earnings capacity per share. Market cap is around 1.3 billion at the end of the quarter. And this is our fifth year where we pay monthly dividends to our shareholders. We're told we're the only listed company in the northern Europe or in the Nordics to do so. And buying the share at yesterday's share price, we've given approximately 6% annual dividend yield and paid out monthly. And sticking and looking at our portfolio to the right, you can see that about half of our portfolio is in Finland. We own about 10% of all daily goods real estate in Finland. Then we grew into Sweden, then into Denmark and Norway, and most recently into the Benelux. So our second largest market is Denmark and third largest is Belgium. And Norway is our second smallest market, but we managed to make an accrued transaction there as well, which we'll talk about a bit later. Then looking at our properties at the end of Q3, just over 640 assets will increase further in Q4 as we close on some of the deals we've already announced. Our property value now 2.5 billion euros, which is a unique platform in Europe for grocery assets. Looking at our tenants, you'll recognize many of these household names. Our tenants are the main daily goods chains in each country. We aim to create stable cash flows in all parts of our profit and loss or income statement. So line by line, we try and create stable income by owning assets which are less than 81% rental income from non-cyclical daily goods tenants. 95% of our assets are acted by daily goods tenants and the average size of our assets is about 2,100 square meters. And then being anchored by a grocery tenant means that often it's the only tenant. Maybe there's a smaller tenant like a flower shop or hairdressers or a tobacco shop or something like that next to the supermarket. Important in growing those stable cash flows is, of course, being following the CPIs in each country. So 99% of our rental agreements are linked to CPI. We have a very stable waltz. Yet again, this quarter, it's a steady waltz of 5.8 years. And important on the cost side of things is that we have over 90% of triple net leases, which shelters us from cost increases. Creating stable cash flow is important also to have a high degree of hedging. 95% of our interest rate bearing debt is hedged. And there's full transparency on every single hedge we do in every quarterly report. So then diving into the Q3 figures a bit, looking at the rental income, up 38% year on year. Our NOI, up 38% year on year also, so great numbers. Our profit from property management, up 54% year on year, as mentioned, excluding the one-off effects in the comparable quarter in 2024. And that equates to up 9% per share. Unrealized changes in values, minus 2.9%, which is a number, but compared to our portfolio of 2.5 billion euros, that's only about 0.1% value reduction, unrealized. Our EPRA NRV has increased by one euro per share over the last So, Serkan, just some key takeaways of the third quarter. I think the first box up to the left we've already spoken about, but the second box here, earnings capacity per share, which is one of our key metrics, important to say that we're happy to see that that's growing again, the ninth consecutive quarter in a row, grown 8% year on year, as mentioned, and also 2% quarter on quarter of our earnings capacity per share. EPREN AV we've already talked about, but also in this quarter it grew 0.1 euros per share. One of the reasons behind the increased earnings capacity per share are the lower financing costs. We're very happy to see that the financing costs are decreasing even further as we grow and we obtain cheaper financing. As seen, our average One can compare that to our average valuation yield of 6.4%. And the valuation yield is also down from 6.5% to 6.4%. We see bank margins falling. It's an all-time low. Bank margins at 1.4%. And also our overall average credit margins of banks and bonds has now fallen to 1.8%. That's also an all-time low. ICOs are increasing and our forward-looking net debt lead guitar is below 10% and then 9.7x. We haven't just lowered our financing costs, we've also created more stability on the debt side of things by extending our financing maturities. So our debt maturity is now 2.3 years, up from 1.7 last year, and our hedge duration is now 2.8 years. Also, that's up a full year compared to one year ago. We also use cash I think that's a good instrument for us to use, as in this volatile interest rate environment, if interest rates fall, then we can reap the benefits of that. If interest rates were to fall 1% across the board, our financing costs would be reduced by 4 million euros per annum, all other things being equal. I think that's a good instrument for us to use in these volatile times. good at leasing we have the activity in our leasing we roll our daily goods tenants and we work a lot of course with our non-daily goods tenants those 19 of our rental income which are not daily goods our occupancy rate has increased in the quarter even if the third quarter usually isn't a big letting quarter usually new lettings are done in q2 q4 but happy to see the occupancy And box number six here, I think that's one of the most important ones as well. Of course, in this quarter, we've carried out the creative transactions since the capital raising we did in June 2025. We raised about exactly one billion euros in June 2025. Oh, sorry, one billion Swedish krona, about 90 million euros. And we've now announced deals that that money has been deployed. We managed to build the strong pipelines. We can deliver on our efficient pipelines. We're very happy with the team's work in our seven countries that we can carry out these transactions in a short period of time. I mean, this was a summer period and in just over four months time, we managed to deploy a capital of announced transactions. And that's kind of a repeat from what we did in September 2024, where we raised an amount as well, which took us three months. accretive transactions. So happy about the growth we're showing and looking for more. Box number seven here. We grew in Norway this quarter as well. Happy to see that as well. Norway's been a market where it's been slightly more difficult to grow accretively just because financing costs are slightly higher or higher than other European markets we're in and yield spreads haven't been that attractive. But we're happy to see that we grow with a sizable portfolio in Norway. that later. There's a slide on that. But I think the key takeaway here is that we had a property value of about 60% and 50% more assets in Norway, so growing there. On the operational side of things, we also opened our first office in Denmark. And the reason there being twofold, really. One is, as we grow, it's said that we have one of the largest daily goods real estate portfolios in Denmark. It makes sense, both from a financial perspective and from a So we've opened an office in Denmark and now we have our own offices in Finland, Sweden, Belgium and Denmark. Earnings capacity. Per share, very important metric for us, as mentioned before, up 8% year-on-year, ninth consecutive quarter of growth, and up 18% since mid-2023. So we're happy to see our end capacity share growing. And why is it growing? Top-line indexation growth, important, even if we don't carry out any transactions. As long as CPI is positive, we will be receiving top-line indexation growth under the rental agreements in place. Other drivers of earnings capacity growth lower banking bond margins as mentioned and then of course the transactions of a creative nature So looking back at our timeline and our expansion you will see the yellow dots smaller acquisitions we can carry out with our own funds but if we were to do a larger transaction or when we feel that we have built up a strong enough pipeline we will come to the market to ask for funds in order to carry out these accretive transactions and as mentioned that's exactly what we've done this time around as well from june when we raised the money until now in on october when we announced that we have carried out those transactions So happy to see the accretive growth we are delivering. And then diving into a bit about the transactions that we have announced, let's start in Norway. So as mentioned, this is a very pure grocery real estate portfolio. It's in northern Norway. We bought And I think it's a very interesting and a very creative transaction and portfolio we've managed to get our hands on here. I think the photos here do not do Northern Norway justice. It's a beautiful place do not do justice. But people live in Northern Norway. It's pretty difficult to get between the various cities and towns up in Northern Norway. And there are quite a few people living there. In Norway, they have a very, very vibrant rural communities. And people wake up hungry also in Northern Norway, and they need to go to the supermarkets. to bought this portfolio and the portfolio had nine of a thousand assets which is a discount chain and it's a norwegian discount chain they're active in denmark now as well they didn't carry out a couple of acquisitions or the aldi portfolio etc are growing in denmark but they are a norwegian retailer kiwi and spa belongs to noise group but this is an independent retailer, grocery chain in Norway. Most of the assets were built, everything was built after 2002, but most were built a lot later than that. So happy to have got our hands on that portfolio and to also grown our Norwegian portfolio, but more importantly, it was an accretive transaction. And then another transaction we recently announced is the buyout of our joint venture partner or our part owner in the Oneplus was a company which Forum of States had already set up before Cebus acquired them earlier this year. Oneplus is a company which buys ready developed grocery assets in Belgium and now what we prematurely did was buy out our development partner and got our hands on these five from our Q4 accounts. So two jumbos and a Lidl and then one store in Mautsen there where there hasn't been announced which grocery retailer will be opening a store there but the lease is signed. So happy to get our hands on these assets as well. And we continue to trim our petroleum, converting food into yield is what we do. And if it's not really food, then it's not really our game or our investment. quarter is we have sold three assets. These three happen to be in the Benelux in Belgium. One in Depana, which is the picture to the left here. And I think this is an interesting also re-letting story. This used to be a Lidl store, which Lidl vacated. The team quickly re-let that, divided that into two spaces, into an Action, which is a discount store, and also Viva, which is a a non-food discount store. So when that was done, we could sell that for a good price. Klitvat in Lanneken is also a non-food discounter. And then we had an odd one out in Ostende, which was a gym, which perhaps doesn't fully fit the CBUS setup. So those are the non-strategic assets we've sold. Following up in our Q2 presentation, where we described a case study and how we work with active asset management, we thought we'd bring out some more case studies for you this quarter, showing you two case studies, this one and on the next slide. The first case study is in Nantali in Finland, where we are redeveloping a K supermarket, so led to Kesko, to a Tokmani. So the story behind this project is that Kesco is moving out to build their own asset just across the street, a electrical area of 2,500 square meters. And the store they're building, it's a bigger store. And they are then leaving our asset. And then we have immediately re-let it, even before Kesco left the premises, let it to Top Money. And we're now redeveloping it for Top Money. signing a new 10-year lease. So I think it's an excellent re-letting story of how we actively can go from one daily goods player to another. The second case study we're showing is also in Finland. In this case, Kesko supermarket in Y, in Finland, close to Ulo, in northern Finland. This resembles the case study we had in last quarter in Kupio, where we, together with Kesko, doubled the store size in Kupio. We're here, we're doing more or less the same thing. So this K-market is being redeveloped into a larger K-supermarket. So together with Qesco, we have acquired the neighboring sites. We will be building a new building on the extended site. And when the new store is finished and open, we will close the old store and demolish that building and make it into larger parking, because parking is very important to our business in all of our markets. some of the traffic is car driven. So good attractive yields, both yield on cost and IRR. And I think this shows also our commitment to our core tenants and our property development skills. So Pia-Lena, over to you.

Thank you. I think Christian has covered all the significant events during the quarter already, except for the update of the MPM program that we do every year. So I think we'll flip to the next slide. So after the period, we have made two taps on our loan 108 bond amounting to 20 million euros and 10 million euros respectively. And as Christian mentioned, we have acquired the remaining shares of OnePlus, which will henceforth be consolidated into CBUS as a subsidiary. Additionally, we have initiated a new joint venture, TwoPlus, which will be owned 50-50 together with TS33. And TwoPlus will be consolidated as a subsidiary Looking at the PML, we have no non-recurring items in the third quarter. We see the impact of the lower credit margins reflected in our finance expenses. From property management was 21.8 million euros. Unrealized changes in property value amounted to minus 2.9 million euros. And all countries, with the exception of Finland, show increasing unrealized property values. But the values in Finland declined due to the changes in the valuers' letting assumptions in their models. The average initial valuation yield on the portfolio as a whole fell during the third quarter from 6.5 to 6.4 subsets. Looking at the earnest capacity, rental income has increased as a result of acquisitions. Property expenses has increased due to acquisitions as well. But we also have a positive impact by the divestments that we've made. Administration expenses has increased due to the acquisitions and also the additional new personnel. Profit from property management increased with €2 per share since the last quarter to €1.07 per share. And then we have calculated on the new number of shares after the share issue in June, but also included the assets that we've taken possession of until the 15th of October, since the share issue funds were used for those acquisitions. Looking at the net operating income in a comparable portfolio, the negative impact from the change in occupancy amounted to minus 1.6 million euros. However, three properties amounting to minus 0.6 euros were assets received in agreement with the tenants, has terminated the lease early to enable development of the property. The non-DALI asset mentioned earlier by Christian being one example. The effect of indexation amounted to 1.5 million euros or 1.3%. CPI, particularly in Finland, remains low. The effect of acquired and sold properties increased NOI by 44%. In total, the NOI, the earnings capacity, increased with 43.4% to 165 million euros. Civil segments is countries. Finland remains the largest segment, contributing with 50% of the NOI. Denmark, followed by Belgium, each account for 15% of the NOI. Looking at the balance sheet, property value amounts to 2.5 billion euros. Secured debt totalled 1.2 billion euros, resulting in a loan-to-value of 49.8% for secured debt. In addition to this, Sibus has unsecured bonds of 243 million euros, but also holds some funds from the share issue in June under other assets. bringing the total LCV ratio to 56.1%. The EPRA NRV was 12.9 euros per share at the end of the third quarter. The vault remains to be very stable, as you see in the graph below, and was 5.8 years excluding the Beldo termination rights. With the termination rights, it was 4.3 years. 82% of total funding consists of bank financing. The average bank margin decreased by 0.2 percentage points to 1.4% in the third quarter, compared with 1.6% in Q3 2024. and the average capital maturity extended to 2.3 years from 1.7 years last year. Subordinated loans of 12.2 million euros from the former owners of four estates were called and then repaid on the 12th of September 2025 using the funds from the directed share issue in June. So the subordinated loans are no longer part of SIBUS funding sources. SIBUS is currently 95% hedged with an average fixed interest maturity of 2.8 years. And all else being equal, the hedging ratio is expected to increase to 97% in the fourth quarter. Interest rate sensitivity shows that the reduction in market interest rates have a greater impact on earnings than the increases. As a large part of CBUS hedges are interest rates caps. And one percentage point increase in market rate would then affect earnings by minus 0.6 million, while a decrease would affect with 4 million. Net LTV stood at 56.1% at the end of the third quarter. The funds from the share issue in June are temporarily reducing the net LTV and are expected to increase again back to the Q1 2025 levels once all the funds have been deployed. The interest coverage ratio increased to 2.4 times The net debt to EBITDA was 10.7 times, but as acquisitions add debt immediately while the EBITDA is built over time, we focus on the forward-looking ratio, which was 9.7 times. Sibus generates stable cash flow enabling monthly dividend payments to our shareholders. Based on the closing price of 169.55 SEK per share, the dividend yield was 5.9%. Sibus is a liquid share trading 1.6 times its market cap. which is more than 68% above the average for other real estate companies with a market cap exceeding 10 billion SEK at Nasdaq Stockholm. Sibus continues to enjoy strong support from its shareholders, many who have been with us and invested in Sibus for several years. The total number of shareholders keep growing, now reaching 59,000. Over to you, Christian.

Thank you for that run-through. Moving on to the future. First looking at ESG, what are we up to there? despite what's happening in the world with Omnibus, et cetera, ESG is a very, very important part of our business. We are voluntarily reporting CSR according to the CSRD framework already in 2024, and we are planning to continue to do so. I think what's very important just to lift out here on the ESG side of things is in the E, 49% of our taxonomy of assets and taxonomy aligned and also almost 80% of our tenants are sustainable tenants according to the SPTI framework. As they are consumer facing consumer goods companies, ESG is very important for them as well. Highlighting here in this quarter also is that as we purchase some of our energy for our tenants, 96% of our purchases are fossil fuel energy. already 2024 in scope 1 and 2. How are we working on it on a daily basis? Well we're installing solar panels where we can and together with our tenants we are adding EV charging everywhere we can as well so there's a big rollout of that happening and then also we are looking into more renewable heating sources so we're trying to move away from natural gas for example and be to be done there and the s is very important in our asset class as well this is social infrastructure people go to the supermarket not just to buy food but in many places to interact with people so it is a meeting place it's somewhere to buy food get fed but also to meet people but also it's a very important part in social infrastructure when building a resilient society Due to the geopolitical turmoil in Europe right now, this is, of course, much, much higher up on the agenda for governments and the population of Europe. I know I've been talking to you before about what the Finnish government and the retail chains are doing, grocery chains in Finland, where they are setting up which will have, with self-sufficient on electricity, will be a place to come and get information, food, fuel, charger, phone, et cetera. So the Finns are really moving ahead on that side of things. And now the Norwegians and the Danes are coming up with the same kind of setup. So a retail chain in Norway and in Denmark, they've said 100 stores and 50 stores respectively, from electricity, but also from supply chains disruptions. So there's a lot happening on that side of things for our asset class. And I think that's a very natural development. And we'll see what happens in other markets. Sweden seems to be lagging a bit behind, even if media is picking up on a lot of that, of what is actually being done by Swedish suppliers. And then moving forward for CBUS, what are we focusing on? Six main points. One, continue to grow our earnings capacity per share in all parts of the business. I think that resonates with what we've been saying before. Let's continue to do what we've been doing. Two, continue to consolidate this asset type and asset class across our pan-European specialist platform. So we're sticking to doing commercial food into yield, but doing it in seven countries and looking at other continental European markets as well. We continue to work on our balance sheet, optimizing that, refinancing and hedging as we've done. Carryout number four, carrying out those CPS creating transactions just as we've done previously, executing opportunities in existing markets and others, and looking at other mainland European markets, as mentioned. When it comes to the organization and team, we have a competent and experienced set of employees. We work in pan-European across our business, and we have a focus on slightly more in-housing, where it makes financial sense. to our tenants. And importantly as well, number six here, we're committed to deliver shareholder value by continuing to convert food into yield and grow our earnings per share. So that was the last slide for us and moving 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.

Oscar Lindquist Good morning. Good morning. Firstly, on the OnePlus acquisition, I understand that's 64% grocery. Will you be looking to sort of refine that exposure or are you happy with that?

Yes, I think that's a fair assumption. One of the five assets we bought is a gym, a basic gym, which doesn't really fit in our strategy long term, but it's a very nice asset.

Good. And then also on the new JV2+, can we get a sense of project pipeline and potential going forward?

Yeah, I think what's important here is that we work with a skilled developer who is hungry to deliver assets to the joint venture where the developer also owns 50%. And we have the right to first refusal for any retail developments that this developer carries out in Belgium. So let's hope for some very interesting volumes in 2 Plus going forward.

And what do they have ongoing now or planned to start in the near term?

Yeah, they have ongoing plans for sure. I mean, as a developer, it's a pretty long time timelines to get projects out of the ground, just as we know across the Nordic countries to get planning permissions, etc. So they're actively working on an interesting pipeline. And I think one could assume that we find the pipeline interesting. That's why we're entering into a new joint venture with them.

Yes, okay. And then on sort of activity in the transaction market and pricing, could you give some color to where you see, have you seen any sort of material yield compression or which markets are you looking more closely on?

Yeah, sure. I think it's fair to say that we are seeing yield compression also in our valuation, but also in the market. We see now that competition has been quite high in Sweden for quite some time, as you've heard me say before. Lots of institutional players in Sweden chasing our asset class, other listed players, private equity. A lot of investors have realized the stability and attractiveness of the asset class, especially in Sweden. And now I think it's fair to say that that's trickled over to Finland. So we see both Prisma Properties and Baader buying in Finland instead of in Sweden. And I think that over time makes more competition. Over time, that should mean that yields go down as interest increases. But it also means that perhaps supply will increase because good pricing and good processes tend to bring out more sellers to the market as well. High competition in Finland, high competition in Sweden. In Norway, yields and accretive transactions have been a bit difficult to carry out. I think we're very happy to have done that in Norway. I hope to grow more there as well. Denmark's been a liquid transaction market throughout 2022 and 2023 as well. Lower financing costs due to the real platform with local people and economies of scale adding even more assets and they're very close to the market and delivering a very interesting pipeline for us also since the acquisition so for SEBA shareholders and for the foreign state shareholders, but it's also a future potential pipeline of nice assets in the Benelux region. And then we're looking at other markets in mainland Europe. As the only company trading at a premium to NAB, owning these types of assets across Europe, this, of course, gives us opportunities.

Okay. Good. And then finally, on the negative value changes in Finland, were they attributable to the redevelopment you mentioned in the report, or what are the drivers here? I understand the value has taken new assumptions on long-term occupancy in the quarter.

Yes, that's right. I think this is, let's take one step back. We value all of our assets externally every quarter. So 100% of our assets every single quarter. Not everyone does that, of course. We do that. We like the transparency it means. And what's happened in Finland is we see certain assets yields have compressed. And in other assets, we see that there's been slight change of occupancy assumptions. And also, of course, when a quarter passes, then if market rents have changed or occupancy or assumptions have changed, then that day comes a bit closer. That said, it's difficult to say what's going to happen in the next quarter. This is all, it's what the value is, assumptions are changing and looking at it, it's a very small number.

Okay, yes. And sort of on letting activity, how would you say that it's progressing? Do you see any themes in tenants that are struggling particularly or expanding?

No, I think letting activity is not a very big thing in our business. 81% of our And there what usually happens is the rental agreements roll off. Where we need to do a lot of work is mostly in our non-grocery tenants. And there it can be in discounters who are moving, etc., etc., durable goods, etc. Some of them are more in a tougher space, but that's why we're staying to the converting food into yield space of things. But in general, I wouldn't say there's a trend across our markets for any tenants performing badly or in general. I mean, we own very little sporting goods, for example. that, which is a chain which has been struggling in Sweden. So I'd say it's a natural churn in our non-grocery tenants. That's what's driving some of the letting activity.

Okay. Thank you. Thanks for taking my questions. Thank you.

The next question comes from Victor Hockenhemmer from Pareto Securities. Please go ahead.

Hi, good morning. Thanks for a good presentation and great to see us mentioned increasing both earnings capacity per share and occupancy. I have a question starting with investments in existing properties that have increased somewhat both quarter to quarter and also compared to Q1. And I understand that it's both given the mentioned redevelopments and ongoing portfolio growth, but they are also as a percentage or share of your total portfolio value. Do you have like any guidance for Q4 and 26, either in terms of, in absolute terms relative to your size?

Yeah, I mean, yes, we have invested in our properties, but of course then 2 million of those are tenants improvements, which gives yield in line with the existing portfolio. And then also we have opportunity development that is also driving some of these investments. And compared to the portfolio size, it's quite a small number in that sense. But of course we are more active, you could say, in also, you know, in the property development and TEIs with the tenants to be able to prolong agreements and do these new lettings, so to say. We haven't guided on the size of the investments for the year as a whole, but it's not large numbers, so to say, for a portfolio of our size.

Okay, perfect. That's very clear. And then a question on M&A. Could you comment on whether you looked at the cook transaction that MP3 completed a few months ago and why you chose to buy it?

Sure. Now, I think it would be fair to assume that a any grocery portfolio in our current markets that are moving, we will look at. And I think the takeaway from that transaction is that very interesting to see that another listed player, MP3, which is not really focused on retail in that sense, decided to buy that portfolio. So they're great to see that others have understood the attractiveness of the cash flows of grocery and also the future of co-op. I mean, there's been a lot of media coverage about what is the future of co-op. So I think it's interesting to see that there's other skilled listed players who know what they're doing, who are actively investing in the asset class, also with 100% or close to 100% of co-op.

Coop Sweden. That's clear. I agree. And you have to have more in the market. Do you expect the deal activity now in Q4 to increase both in the Nordics and the Benelux region compared to Q3?

Did you hear that?

The acquisition activity is to increase generally in the market.

I think that Q4... Sorry, Victor. Yeah, sorry. Go ahead. Yeah, I think generally in the property transaction market, Q2 and Q4 are quarters where there's a lot of action. Before midsummer, before Christmas, that's when people want to get things done. So just based on that and the increased attractiveness for our asset class, I think it wouldn't be a surprise if transaction volumes do increase in general in the market. Yep.

And then a follow-up from Oskar's questions. The 2 Plus joint venture, do you expect it to contribute anything to your earnings over the next 12 months? Or should we more view it as a new long-term earnings contributor?

I think that's not something we're communicating. As and when and if 2 Plus does its first transaction, we will let you know. Okay, perfect.

And lastly, as mentioned, you focus on your current markets and you also mentioned that you're actually evaluating opportunities in mainland Europe. What will you say in the next 18 months? Will you stay in your seven markets or have you entered new ones?

We're actively looking at markets, new markets, just as we did, we're actively looking at mainland Europe when we did the Benelux transaction. When and if the right platform comes along with the right deal metrics and it's accretive for our shareholders, then we're happy to transact on that. There are interesting So people wake up hungry every morning all across Europe as well, just as they do in the Nordics and the Benelux. So there's plenty of interesting markets, plenty of interesting grocery chains. It's the same kind of dynamics as we're used to from our markets in mainland Europe. So we're actively looking at mainland Europe.

Okay, perfect. Sounds good. There are some more questions. Thanks.

Thank you. The next question comes from Svante Krokfers from Nordia. Please go ahead.

Thank you, Christian and PLN. Good morning. Good morning. A couple of questions left. Most have been already answered. But could you repeat the occupancy rate improvement quarter on quarter was quite significant. Was it seasonality only or was there something else?

Yes. Yeah, the occupation rate 96.1%. Of course, it's of course due to some of the new lettings that we have and some seasonality, but usually it is the new lettings that we've been able to do. And also the composition with new acquisitions coming in with higher occupancy, I would say.

Thank you. And regarding your M&A firepower, you added 91 million in the share issue and now have acquired over 180 million after that. What's your own opinion about how much M&A firepower you have left?

We've acquired for about 173 million since the share issue, but we've also repaid the subordinated loans of 12.2 million. So everything we've done there has been accreted. But just looking at the numbers, then one could say that more or less that money is now earmarked and announced for transactions.

That's clear. And last question regarding Norway. Will you continue to make further acquisitions there given the interest rate environment in Norway?

Yes, I hope so. I think that we've shown that we can carry out an accretive larger transaction in Norway. And what usually happens is that when you reactivate yourself in a market like we've done here, we did buy one asset outside of Stavanger last year, but this is a This is a big media thing in Norway. It's a pretty big transaction. And hopefully that will bring out a number of interesting sellers who will realize that we're active in the market and we pay good prices. So hopefully that will lead to more transactions in Norway going forward as well. I'm happy to grow that market as well.

Okay. And the last one regarding we discussed the Prisma in Tuusla, Finland, and potentially that S Group could be interested in that one. You haven't received any bids on Prisma in Tuusla.

It's still being built, but I'm a very happy owner of it, or to be owner when time comes. So this is the Prisma hypermarket, not to be confused with Prisma Plus. market owned by s group which is co-op in finland a very very financially strong tenant who love to own their own assets i think that's what uh is it like yeah okay thanks a lot that's all from me thank you the next question comes from john vong from van lanchett kempen please go ahead

Hi, good morning. I still have a follow-up question on the 2 Plus JV. What size are you targeting for the vehicle? And also on the Rover, on all the Belgian retail projects, how does it exactly work? Are you sharing in the development risk and profits, or are you acquiring there at market yields?

Sure. So the two plus is a joint venture. The one plus we own, we own 31% and the developer 69%. Now it's 50-50. And the way the structure works is that we have the right to first refusal to say yes or no to any ready developed retail assets that the developer develops in Belgium. So if we feel that the grocery, among other things, because that's our converting food into yield strategy. So that's one of the key points, of course. And of course, it needs to be an attractive asset, a stable tenant, good rental level, so it's not over-rented or... could be under-rented, that's always nice to be able to raise rents to higher levels sometime in the future, but as long as it's not over-rented. I think that's kind of the parameters we would look at as and when the developer were to present any projects for us.

To understand that correctly, these are assets that are already finished, so you're not taking any development risk here.

No, we're not taking any development risk. In some cases, we may decide to forward fund parts of the development costs, for example, land acquisition prices or something similar like that. But the way the structure works, we don't take any development risk.

Okay, Claire, thank you. And just on the activity in the transaction market, like you said, Q4 is generally a bit more active. To ask it differently, how do you see your share of the transaction activity compared to previous quarters in Q4?

That's a good question. We haven't really spent much time on thinking about our share. It's not like we're... That is not a key number for us. What's important for us is that it's accretive transactions and that we're buying and good levels. We are not the party who's going to be pressing down yields in any market just because we can, if it were to be that our financing costs continue to fall massively. We've seen plenty of other companies make costs go down and people get a bit over exaggerated and start pushing yields down to under long term sustainable levels, that's not us. We're growing steadily and conservatively and disciplined within our converting food into yields strategy. So I would say I'd be surprised if we do 100% of everything in a market, that would be too much. That means we're probably overpaying and overpriced. So I'm happy to see that there's other players in there as well and fighting for us for attractive assets.

Okay, that's clear. Thank you. And just last one on internalization. So you said that you opened an office in Denmark and you're focusing on more in-housing. I'm just trying to understand the financial impact here. What do you expect the impact is on your margins, both in the short and the long term?

Yeah, I mean, we have not guided on that. But of course, we are doing the insourcing here because we believe that we will get long term advantages on cost, but also becoming closer, even closer to attendance, getting advantages of that as well. So it's not only cost-driven, but in the short term, perhaps not that much, but in the longer term, we might see a cost reduction due to this insourcing.

Okay, thank you. That's it from my side.

Thank you. The next question comes from Stephanie Dosman from Jefferies. Please go ahead.

Hello, good morning. Most of my questions have been answered, but maybe a follow-up on the asset value changes in Finland. You said it was much related to occupancy, but do appraisers also assume lower rental growth? I mean, it would be interesting to see the yield impact compared to the rental impact. Maybe that would be my first question I have for once. Please.

So, I mean, the value is there's a number of, in talking general terms, there's a number market rental values going forward, indexation growth, lower index would mean lower market values in the future, occupancy rates going forward, long-term vacancy rates. There's a number of parameters that go into their cash flow model, of course. And in this case, it happens to be that occupancy, and we call that as a general term, occupancy assumptions. And there's a little bit of each in that, I would say.

All right. My second question is regarding the yield and cost on your projects. I mean, you have shown a couple of redevelopment examples. And what do you call an attractive yield and cost on redevelopment? Could you tell us a bit about the rental uplift achieved, for instance?

Sure, sure. We're not disclosing anything on the actual numbers. We only had a handful of tenants who we negotiate with every single project and we wouldn't want to give away too much information to them from a bargaining power perspective. But one could say if you compare to another listed company, Prisma Properties, they are claiming that when they do developments, they achieve a yield on cost of, is it seven or eight percent, I think they've been saying, which was

life okay thank you and maybe the another question on the acquisitions you don't disclose yields on acquisition on the case-by-case basis So could you please give some more colors, I would say, on that, at least on average, for the acquisitions realized in the year to date? Excluding foreign estate, by the way.

Yeah, I think we don't disclose any yields on that. same competitive reasons. But the way we try and calculate is that we want an attractive yield spread over our financing costs in the local market, including our dividend yield. So we try and do a weighted average cost of capital for every market where we finance ourselves locally and with potentially or SEK and then we try and find yield levels which create an attractive yield spread and that's how we kind of calculate what's an attractive deal or not or one of the parameters how we calculate what's an attractive yield or not so we can compare different countries to each other so an internal competition for which country can provide the best yield spreads and accrete

All right, thank you. So you mean that for future acquisitions, you will target a spread of financing costs, right? So what would it be, something like 200 basis points or 250? I think your target was close to 6.5% in the past, so I was just wondering how much it has changed.

No, we're not disclosing any what we find interesting yield spreads.

All right. Thank you so much.

The next question comes from Oscar Lindquist from ABG Sundahl Collier. Please go ahead.

Yes, hi. I have a couple of follow-up questions on financing. You mentioned bank margins down to 140 basis points. on average now. Could you give an indication of where you receive margins in new debt and refinancing?

I mean we have guided that we have refinanced additional bank loans in the fourth quarter receiving then 0.3% percentage points lower margin on that on those 33.3 million euros so there's we do see a lot of 110 basis point margin then no no no no no of course since we're refinancing old bank loans then of course they have higher margins than the average margin so Absolutely. It's not down to that. I would say in line with the average margin. But we do see a lot of interest by the banks to refinance and to be part of the silver's growth journey and are receiving attractive financing from them.

And in discussions with the banks, have they changed anything in terms of loan-to-value ratios or something like that? Are they more able to increase LTV ranges?

I mean, we have different discussions, and for us as Akash, and driven company of course I mean we could go up in LTV with the banks they're happy to do that but then there's always a discussion regarding amortization and we prefer bullet loans in bank financing so of course we have different discussions with the banks but nothing more than that I can disclose now.

Yeah, and just as an additional point to that, I've been financing these types of assets previously in my previous career as well since early 2010-ish. And LTVs are pretty stable, 50 to 60% for these kind of stable assets has been where the banks like to operate. It's stable income, it's stable tenants, it's non-cyclical, it's It's social infrastructure, it's well-diversified portfolios. It's a great asset class for banks to find in general. And I think competition between banks is heating up, as has been mentioned.

Yes. You received quite favourable terms on the bond market as well. Are you looking to increase that mix of financing?

We're quite happy with the mix that we have now. We're happy to have the combination of both bank and bond financing. So that's something we want to have also going forward. But for the midterm, bank financing will be the absolutely largest part of our financing since we are getting attractive terms there.

Perfect. Thanks.

There are no more questions at this time, so I hand the conference back to the speakers for any closing comments.

We've received a written question, which is, can shareholders look forward to higher dividends per share in 2026? And that's a question which is above our heads. That's a question for the board and ultimately a vote at the annual general meeting upcoming in April. So that said, thank you for calling in and listening to our Q3 presentation. Have a great day, everybody.

Thank you.

Thanks. Bye.