Cibus Nordic Real Estate AB (publ)

Hello, and welcome to CIBUS Q4 presentation. My name is Stina Lindhög, CEO of CIBUS, and with me I have Pia-Lena Olufsson, CFO. To start with here, I just want to say that I'm glad that I have got the opportunity to continue to develop CIBUS further. I have followed CIBUS for several years, and I've been on the board for the past year. And I do believe that the company has a very interesting business idea and also is in a very exciting phase. For those who don't know me, I have most recently been CEO of Nyfosa Fastigheter, listed on large cap. And during my time at Nyfosa, we had a strong focus on growth and constantly building stronger cash flows. And during the time I was there, we grew from 15 million to 40 million with focus on increasing cash flow per share. Sibus has a unique business concept, converting food into yield, which means that the company mainly focuses on grocery properties and are the sole listed daily goods real estate company in the Nordics. The aim is to create stable cash flows and monthly dividends to our shareholders. The company has been listed since 2018 and has grown from owning food properties only in Finland to having operations now in seven countries, Sweden, Norway, Finland, Denmark, and the three PNLX countries. This platform is a good start to continue growth in existing markets. And we also look into new markets in Europe. And my ambition is to continue this growth journey. In Q4, we see increasing income and operating income for 2025. But what I like to highlight is the profit from profit management that has increased to 0.25 euro per share, an increase of 25% compared to 2024. Another thing to point out is that we have a positive unrealized value change of 7 million euro with an unchanged yield of 6.4%. And Pia-Leona will continue to go through the results more in detail. But some key facts. As I said, strengthened profit from property management. increased by 25% compared to Q4 2024. And that improved profit from profit management is partly a result of lower interest rate and better margins in the credit market, but primarily a result of the earnings accredited transaction that's been made over the year. So it's basically that the work from the team over the last year is now shown in the results. During the first quarter, we also bought 36 properties acquired in Sweden, Finland, Denmark and Belgium at a value of 136.2 million euro. And I will give you some more flavor on that later on. We also had an increased earning capacity, increased up to 1.8 per share euro. And the step into Benelux that has been a significant part of that growth, but also the acquisitions in our existing market have been and are important part of the work and to grow earning capacity. Increased local presence. Cebus have properties in seven countries now, as I said, and we continue to grow. We also would like to build up new offices in each market. We are kind of replacing consultants step by step. During this year, the office in Denmark opened and we have now our own employees in all markets except Norway. And I believe with presence, we can become even more proactive in helping our tenants and we can get closer to the market. And when you get closer to the market, more opportunities also arise. Worth mentioning is also the bond issue. We continue to see a strong credit market, which has also been demonstrated after the quarter by Sibus both refinancing and issuing new bonds totally of 85 million euro. The margin was 2.1% and actually the lowest CBUS has received so far on a four year bond. And finally, the board proposes an unchanged dividend on 0.9 per share with a monthly dividend as before. This means that we continue to distribute a high part of our cash flow, but also keep some money for the future investment. Last year, this time, CBUS had a portfolio of 483 properties. Today, the number is 672 with a value of 2.6 billion euro. And here you also see on the slide that CBUS tenants mainly consist of well-known and established grocery players in our different countries. Stable cash flow is the key for our strategy. Even though the portfolio has grown during the year, still 81% of our rental income comes from daily good tenants and still 95% of the properties are anchored by grocery tenants. Furthermore, 99% of the leases are SIPI-linked and the average contract length has increased to six years in Q4. More than 90% have net or triple net leases. And also worth mentioning is that the average property is 2,100 square meter, which means that the exposure to each property or each store is relatively small. And also in addition to protect cash flow, we also have a hedging rate of 98%. Earning capacity increased, as I said, up to 1.08 euro per share. And the aim is to continue accretive growth. It's about constantly trying to find opportunities. We will continue to work close to the market and search for right deals. And this is how we will and shall continue to grow in form of increased earning per share, but also in the form of increased profit from property management per share over time. We've seen activity in the leasing work over the year, and gross returns rarely move, but there is always some ongoing new and relocation work. And in 2025, 20 leases were signed for a value of 3.3 million. There are always also a number of ongoing projects linked to reconstruction, conversion of premises or energy savings. And normally we also sign new agreements in connection with this project. The lease length has increased to six years and the occupancy rate was 95.7% in Q4. And you also see here just an example of this. where we practically replaced K supermarket with a Coelho in Olo in Finland, and at the same time increased the length of lease with eight years. And just some information about the new acquisition that we made since my start. have acquired 11 properties through five transactions in four of our existing markets. Sweden, Finland, Denmark and Belgium. And each of those deals has been found with contacts in each country. So that also shows the importance of being present. As you also see here, there are some nice add-on properties on the portfolio. We have ICA in Sweden and Axfood in Sweden. We have Netto in Denmark and Jumbo in Belgium. And we also include a new construction with top money. And all these properties has double net lease structure and the average contract length is 11.6 years. And this is actually example of how I hope and I believe that we can continue with transactions going forward. Use our existing platform to find the right opportunities. Okay, over to you Bela.

Thank you. So let's start off with some key events during the fourth quarter. We made two tops on bond loan 108 at a margin of 210 basis points for our 3.3-year bond, which was the lowest margin to date. Sibus then acquired the remaining shares in the joint venture OnePlus and became the sole owner. At the same time, we established a new 50-50 joint venture with a developer, securing the right of first refusal on Belgian retail projects. And then, as we know, Stina was appointed CEO of Symbus. The 19th of December, we acquired 11 properties, as Stina mentioned just now, across four countries. After the period, we have refinanced bond loan 105 at a lower margin of 210 basis points from 400 basis points and at a longer maturity of four years. The nomination committee has proposed that Louise Richenow and Stefan Dahlbo count new board members at SIFUS. All other board members are proposed to be re-elected except Nils Stuyve who has declined. Looking at the P&L in more detail, the net operating income amounted to 41.7 million euros. Administration costs include a non-recurring agreed remuneration to the former CEO of minus 0.8 million euros. Exchange rate changes amounted to minus 0.4 million euros. So profit from property management excluding non-recurring items and exchange rate defects was 20.5 million euros. Unrealized changes in value on properties was plus 7 million euros. During the quarter, all countries except Finland recorded stable or increasing property values. The value uplift was mainly due from completed acquisitions and lower vacancy assumptions. In Finland, values declined due to expectations of longer lease cycles. and the low CPI index adjustments driven by low inflation. Current tax includes a one-off of minus 0.3 million euros related to exit tax in Belgium in connection with a merger. Earnings for the quarter was 27.3 million euros or 0.33 euros per share. The current earnings capacity shows a net operating income of 167.7 million euros, an increase of plus 37% compared to the 1st of January 2025. And this is mainly due to acquisitions, but also CPI index increases. Administration cost increases mainly due to new acquisitions, but also due to continued investments in building sieves. Profit from property management cash was 88.3 million euros or 1.08 euros per share, an increase with plus 9% compared to a year ago. Looking at the net operating income in a comparable portfolio, The increase in vacancy during the fourth quarter was primarily attributed to a previous communicated property in Lakti, Finland, where Kesko has vacated. Leasing activity is high, as Stina mentioned. with more than 15 new retail leases signed during 2025, of which 1.9 million euros will commence after the 1st of January 2026. And it's not yet included in the like for like. Index increases was plus 1.2 million euros. We have low inflation and thus low CPI index increases, especially in Finland. Like for like, NOI decreased with minus 2.1% to 119.6 million euros. The NOI grew with plus 39% due to acquisitions. So the earnings capacity strengthened significantly with total NOI up plus 37% to 167.7 million euros. Sibus segments are countries. Finland remains our largest market, accounting for 48% of NOI, although it's lower than the 68% reported in Q4 last year. Belgium is now the next largest market with 16% of NOI, followed by Denmark with 14% of NOI. Moving on to the balance sheet, the property value amounted to 2.6 billion euros. Secured debt totaled 1.3 billion euros, resulting in a loan-to-value on secured debt of 49.9%. In addition to this, Sibos has unsecured bonds of 275 million euros. The net loan-to-value was 58.2%. The EPRA NRE was 13 euros per share, up 1.3 euros per share since Q4 last year. The vault increased to six years at the end of the fourth quarter. Sybos is an active landlord that continuously extends lease agreements with its tenants. The vault has been very stable, as you can see in the graph below. Over to funding, average interest rate was at 4%, down 0.2 percentage point from last year's, supported by low margins on refinanced, financed bank loans and bonds. For the fourth quarter, however, it was an increase of 0.1 percentage points on the average interest rates due to a maturing low rate interest cap that was replaced with a higher interest rate cap. At the end of the quarter, we have a record low average credit margin of 1.7%. And we have extended our average interest fixing to 2.7 years. We've also been active on the bond side, as I mentioned before, doing two taps on the loan 108 and after the period refinancing a bond of 50 million euros with a new 85 million euro bond at the lower margin, which went from 400 to 210 basis points at the longer maturity. For CBUS, stable cash flows are very important. 98% of our external loans are hedged. Interest rate sensitivity shows that a reduction of market interest rates have a greater impact on earnings than increased market interest rates, since a large part of CBUS hedges are interest rate caps. An increase of market interest rates with one percentage point would affect earnings by minus 0.8 million euros annually, while a decrease with one percentage point would affect positively with plus 4.5 million euros annually. Looking at our key credit metrics, the net loan-to-value The net LTV was stable at 58.2% and net debt to EBITDA increased to 10.9 times, reflecting that debt is added on day one, while EBITDA is built over time during an acquisition intensive period. On a forward looking basis, the net debt to EBITDA was 10.1 times. The interest coverage ratio strengthened to 2.4 times. For CBUS, as I mentioned before, stable cash flows are essential as they enable us to deliver monthly dividends to our shareholders, something that we have done consistently since September 2020. The board proposes to the annual general meeting an unchanged dividend of 0.90 euros per share, paid out in 12 installments. The silver share is a liquid share, turning at 1.7 times its market cap annually, which is more than 112% above the average liquidity of other large real estate companies listed at Nasdaq.com. During the quarter, Cebus continues its sustainability work by deepening tenant collaboration, expanding green lease clauses and installing additional solar panels now on 80 properties. SEBUS progresses climate-related investments, such as roof insulation and ventilation, and is phasing out natural gas in Finnish properties to strengthen long-term portfolio resilience. We've also continued with community-orientated initiatives to support local social sustainability. Over to Justyna.

Okay. The strategy will stay firm. CBUS will continue to invest in food and grocery properties with stable cash flow, which also means limited exposure to economic cycles. CBUS will continue to grow. We see opportunities in existing markets and in parallel, we are evaluating new markets in continental Europe. We will continue to work with refinancing and hedging to keep stable cash flow. We will build up offices in all markets. With presence, we continue to create business, both with our tenants and also transactions in the market. We should focus on property management per share, profitable growth with accretive transactions, which will increase both earning capacity per share, but also in a longer perspective, profit from property management per share. So all in all, continue to grow and develop Cebus in line with the motto converting food into yield. Thank you. And now we open up for questions.

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.

Good morning. I was wondering, could you give some more detail on what's the driver behind the increased vacancy? It seems to be the Finnish portfolio mainly.

Should I? Yeah, we can do that. That's mainly a property that we have announced earlier this year, Lahti, which was vacated in Q4.

I just wanted to point out that the economic occupancy rate has actually increased to 95.7% at the end of the second quarter. But if you refer to the like-for-like, as Stina mentioned, that is mainly attributed to that single property in Laktis that we have communicated earlier, where Kesko has vacated during the quarter.

Okay, but sort of underlying in the Finnish market based on what you know today in terms of lettings, how do you expect occupancy to develop?

I do think, I mean I've been over there and seen all the properties the latest month and I mean I'm positive for the market in Finland. Most of the tenants are I mean, there are tenants which really well functioning and happy. There will always be a few, I mean, discussions and there are a few discussions which maybe a few tenants will leave, smaller ones, but then we also have new tenants coming in. But of course, there could be some kind of month between, but I expect it to be to be honest, pretty stable over time.

Okay, so expect underlying development and occupancy in Finland to be stable.

Yeah, that's what I expected. I mean, of course, it's really hard to, I mean, we don't know what's happened going forward, but for me, it's like there are always a few discussions, but I expect it to be pretty stable going forward.

then just jumping over to values you mentioned that lower vacancy assumptions drives values in a positive direction and then that value changes in Finland are negative could you give some sort of indication on volumes here yeah and that's

I mean, it's not a huge difference in any market in that sense. I mean, the yield on the portfolio is still unchanged at 6.4%. But they're slightly or they're negative in Finland, as we said, due to longer expected lease cycles and then positive in other markets but it's not dramatically in any of the markets so to say.

And it's a few properties that are valued lower it's not the whole market.

Yeah we can say that Lakti as we said is one of them since it's been vacated.

And just on the earnings capacity, firstly, is the softer NOI margin, is that driven by the slightly higher vacancy or what's driving that?

What do you mean by softer? I'm not really sure I got your question.

So the NOI margin in the earnings capacity as of Q3 was 94.7. It's now at 94.3.

Yeah, it's just a small change. And as we said, I mean, it's due to that we have some also investments in CBUS to building CBUS going forward but as it's fairly stable it's not a large difference between the quarters.

Okay and then on just finally on announced acquisitions and the earnings capacity how much is not sort of how What effect could we expect from announced acquisitions that you have not yet taken possession of from January 1st?

Yeah, I mean, we have the property in Finland that is being built. And of course, that is not in the earnings capacity yet. Otherwise, we have taken possession of them. Then, of course, many of the 11 properties that we acquired in December just slightly gave revenue during the quarter. But they are in the earnest capacity, of course, because then we have taken possession of them. And as you know, the current earnest capacity is a snapshot.

And the property being built now, what rental income is expected from that?

We haven't guided on that. No, I'm not. To be honest, we can look at it. I don't know that in my head exactly.

Okay, thanks.

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

Good morning, Stia and Pia-Leena. Thanks for the presentation. A couple of questions. First one, you're present in seven markets and you're still looking at new markets. What should we expect there? What kind of markets are you looking at? Is it fair to assume it's northern parts of Germany or is there something else that you have on your map?

Well, when it comes to growth and new possibilities, we will, as I said, both go into our existing markets and look into Europe and it's not about I mean for me it's not about growing for the growing sake we should do it the best way we can so if we find better opportunities in existing markets and I would say that we start there but we will and are looking into new markets in Europe and it's not clear a specific market because we are really looking into I would say a few of them and if something comes up there which are interested we are absolutely there as well but I will not give you a specific country because we don't know that yet okay that's fair

Then do you have some comments on the transaction markets and yields in the countries you operate in, perhaps mainly Finland and Sweden? What kind of market activity do you see there?

I think it's been more and more partners in the market wanting to buy grocery stores no doubt about that and you need to be close to the market and I do also think that since we are a long-term owner we've seen that it's been I mean profitable for us because they really want to have a long-term owner when they sell so it's it's an active market we saw few transactions in Finland. We have also seen in Denmark and there are also a lot of portfolios out there. And normally we see a lot of parties in that. So we need to continue to look and be there to find the best of those, so to say. But I won't, as we see now, we have opportunities in every countries. Yeah.

Okay, thank you. And then regarding your loan-to-value 58.2 in Q4, below the midpoint at 58.2, how do you look at where you want to keep that LTV? I guess it also has to do with the fact that your share is now trading at a smaller EPRA NRV premium compared to where we were six months ago. So are you

ready to to increase the ltv further from from the current levels no that hasn't changed we still have that i mean we shouldn't go about 60 we you know you've seen the limitation between 55 to 65 but i would still think that 60 is a good figure to to to be below okay that's clear and then

In your earnings capacity, if we come back to that, the property expenses increased by 10% or 0.9 million euros. That's quite a big increase compared to the top line increase, only with the new acquisitions. So could you elaborate a bit on that increase?

Yeah, sure. I mean, it's a little bit different combination, so to say. Some new properties have come in that, as Dina said, are double net and not triple net. So, of course, it makes a difference in the property expenses as well. In that sense that there's a little in that sense.

Okay, thank you. And then a question to Stina directly. Anything you want to, obviously you have been involved with the company for a long time, but anything you feel that you would like to change in your CEO role?

No, as I said, the strategies stay firm and we will continue the growth story. Of course, they always, I mean, The team, I would say, is really forward-looking and really good. So it's not like something that... There are always some smaller changes that you do when you come in, but the strategy will stay firm and the aim to growth is the same. So you shouldn't... There is no change there.

Okay, thank you very much. That is all from me.

The next question comes from John Vong from Van Lanchet Kempen. Please go ahead.

Hi, good morning. Just following up on the question on the investment markets, are there any specific regions that you are more excited about going into 26?

It was a little bit low sound. Did you ask if we should increase in any specific market?

Yes, indeed.

Now, as I just also said, we are looking at all the markets that we are already in. It's easy to make transactions when you are in the market, you know them better. So if we find possibilities there, we will try to grow those markets. But we also look into new markets all the time and we have a pipeline in Europe as well. But that's, of course, something that takes some more time and we always need to dig a little bit deeper when we take the next step. And it's all about having the best transactions, not growing for the grossest sake.

So maybe to ask it differently, looking at your acquisition pipeline or the opportunities that you see, is the geographical split basically the same as how you are right now? to see, for example, more opportunities in Norway going into 26?

I would say it's very spread, the opportunities. We see them in all markets. So I can't really guide you on that because it's basically on every market. The good thing about it is that you can choose. We take the ones that are the best for the moment.

Okay, that's clear. Thank you.

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

Yeah, we have some some questions from the web. How are you going to make Zeebus a better company than us?

I mean, a company should always develop. And I think what we should do is to build what we can do better is to build up our own offices to be even more competitive, both for tenants and both for new transactions. So that's what we will continue to do, as I said. And also, of course, being very close to the markets and always, I mean, it's about finding the right opportunities going forward. So that's what I will focus on going forward.

We have another question here. What will happen with the vacated Keskoa asset in Finland? Do you expect this to be occupied again in 2026?

We had a lot of discussion on that one, but it's really hard to say if it will end. It's a bigger property and you want to find the right solutions. I don't know about that, to be honest. The discussions are on, but how it will end, I don't know. Yeah, and it was vacated mid this quarter or so. Yeah, it's been vacated for just a month or two.

Yeah. So I think we have covered the rest. So I think there's no more questions.

Thank you for listening and if you should take one thing away from this presentation, it is that Cebus has the highest ambition to continue to grow stable cash flow within the grocery sector. Thank you. Thank you.