Cibus Nordic Real Estate AB (publ)

Welcome to the CIBIS Q2 2026 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 the speakers. Please go ahead.

Thank you. This is Stina Lindhök. I'm CEO at CBUS and with me I have Per-Lena Olofsson. It's been a stable quarter for CBUS with increasing earning capacity per share linked to the transactions we made during the quarter. But before I present the result further, I'll just give you a short CBUS presentation for those of you who don't know CBUS. before. CBUS focus on grocery properties and we have now business in seven countries, Finland, Sweden, Norway, Denmark and the Benelux countries. And we are the sole listed daily goods real estate company in the Nordics. The aim is to create stable and over time growing cash flows. We Why grocery focus? Daily goods tenants are characterized by the non-cyclical underlying business. Food is essential for everyone, regardless of the wallet and regardless of the economy. And the grocery store often stick to the location over a longer period, depending on the customer habits. At the map shown, Every plot, more or less, representing a grocery store, a place where people every day come and buy food. And this is the fundament for our stable business. This portfolio is a good start to continue growth in the existing market and investigate new markets in Europe. The financial summary for the quarter, Pia-Lena will get deeper into that soon, but I would like to highlight that profit from property management per share increased with 7% since last quarter. A few more things I would like to highlight. We had a stable underlying business and increasing occupancy rate. The net operating income has increased with 15% and the occupancy rate is now up to 96.1 from 95.3, depending on both new lettings, but mainly better occupancy rate in newly bought properties and divestment of some vacant properties. We still have focus on letting, especially in Finland, where we have hired three people who will focus on leasing and management. And this is also a step from outsourced to insourced management. And it's the way both become closer to dependence, but this will also give us some cost savings. We have had continued growth during the quarter. 24 properties were closed at a value of €107 million. And as a consequence of those transactions, the earning capacity increased since last quarter up to 1.11 per share, which is an increase of 3% since last quarter. We see a strong capital market, and as all of you probably are aware of, we still have a volatile interest rate market linked on unpredictable environment with a continued risk of increased inflation. But on the positive side, the banking and capital markets remain stable and are willing to support the business in Cebus. We're also in queue 2, so positive market value. During the quarter, property values increased by 2.3 million euro, so small increased value change. All market had stable and or increasing valuation. We have sold five properties and bought 24 properties, and that means that the portfolio now consists of 690 properties. The value is 2.8 billion net operating income from earnings capacity, totals of 176 million euro, giving a yield of 6.4% in line with last quarter. The grocery markets in Nordic are dominated by a small number of well-established grocery chains, which makes most of the tenants stable and professional. Our tenant mix is intact, with Kesko as the biggest tenant, followed by Tokmoney. Worth mentioning is that Tokmoney continues to convert the Tokmoney stores to Eurospar, which means more focus on grocery than they had before. This is a slide I say I come back to every quarter, but it is important so I repeat. Stable cash flow is the key for our strategy and today 82% of the rental income is coming from daily good tenants. 94% of the properties are anchored by those grocery tenants and furthermore 98% of the leases are CPI-linked. The average contract length is 5.9 years, and more than 90% have net or triple net leases, which make us less sensitive for energy prices and cost increases. The average property is 2,100, which means that the exposure each property or store is relatively small. In addition, we protect the cash flow with a hedging ratio of 96%. As mentioned, we closed 24 properties at an acquisition price of 107 million euro this quarter. And those properties are located in Finland, Norway, Sweden and Denmark with an occupancy rate of 99.5%. And the anchor tenants are Top Money Lidl in Finland, Rema Tusen in Norway and Denmark and E-Games Sweden. Those properties are generally in a very good standard and are located in established areas where the underlying operations perform well. This acquisition both strengthens the quality and increased earnings per share as shown in the Q2 figures. We have also divested five non-strategic properties with high vacancy, three of which are in Finland and two in Sweden. at values in line with book value 5.5 million euro. Those investments only reduce the net operating income by 92,000 euro at a basis. So basically that's 1.7% of initial yield and we see that we can invest those Just some examples of new lettings during the quarter. We proactively developed a case supermarket together with our tenant Kesko in Kopio. And at the same time, we also signed a long lease agreement with that tenant. We also made a new letting where Alma in Denmark has signed a new lease agreement on a vacant area in one of our properties there. We have much focus on letting go forward.

Well, let me start off by highlighting some key events during the quarter. As Sina has already mentioned, during the quarter CBUS has acquired 24 properties, the majority of which were announced on the 28th of April. During the second quarter, CBUS also updated its green financing framework, which is in line with the EACMA green bond principle and the EU taxonomy. At the AGM, CBUS removed Nordic from its company name and also appointed Louise Grisnau and Stefan Dagbo as new board members. At the AGM in June, CBUS increased its share capital to 15 million euros through a transfer from unrestricted equity. Over to the P&L, net operating income amounted to 45.1 million euros and included a one-off settlement income of 1.3 million euros relating to tenants early vacating a property in Denmark. Administration costs include minus 0.3 million euros relating to the EGM's approved warrant program. During the quarter, we have recruited four employees to strengthen in-house letting and property management, increasing short-term costs, but is expected to generate long-term savings by bringing services in-house that are now outsourced. Net financial items include exchange rate changes of minus 0.8 million euros, Profit from property management excluding non-recurring items and FX effects was €22.6 million. Property values were slightly higher or stable with the portfolio yield remaining at 6.4%. Interest rate derivatives contributed negatively due to market rate movements. Looking at the current earnings capacity, rental income primarily increased through acquisitions with additional support from indexation. Net financial items increased following acquisitions financing. The new higher hybrid bond cost is fully reflected in the quarter as the bond financed acquisition completed during the quarter. Profit from property management, excluding non-cash items and hybrid bonds expenses increases by 6% year-on-year to 1.11 euros per share. Looking at the net operating income in a comparable portfolio, the impact from changes in vacancy amounted to minus 2.3 million euros, primarily attributed to the previous announced vacancy in Finland. Rental income from grocery and daily goods segment was positive in the second quarter. The impact from tenant transition was minus €0.7 million, reflecting proactive asset management initiatives that are expected to support future earnings. Indexation contributed with plus €2.1 million, Net operating income in the like-for-like earnings capacity decreased by minus 1.1% to 154.6 million euros, while acquisitions contributed growth of 13.3%, resulting in a total growth of 12.7% to 176.2 million euros. Sibus reports its segments by country with Finland remaining the largest market accounting for 47% of the NOI. Denmark was second largest market in the second quarter at 17%. However, this includes the non-recurring settlement income of 1.3 million euros relating to a tenant early vacating a property. Excluding this item, Denmark and Belgium each account for approximately 16% of the NOI. The property value amounted to 2.8 billion euros at quarter end. Secured debt amounted to 1.4 billion euros corresponding to a secured loan-to-value ratio of 49.8%. including unsecured bonds of €308 million, the net loan-to-value was 59.1%. The EFRA NRV remained stable at €13 per share. Regarding the average remaining lease term, it also continues to be very stable and was unchanged at 5.9 years at quarter end. Regarding funding, the increase in bank loans were primarily driven by the acquisition completed during the quarter, and we continue to see strong support from our banking partners. On the bond side, we updated our green financing framework to align with the latest ECMA green bond principle, reaffirming our commitment to sustainable financing. Regarding hybrid bond, We completed the repayment of the remaining outstanding portion of the previous called bond in April and thereby finalizing the refinancing process. CBUS is 96% hedged against interest rate risk through a combination of interest rate cap swaps and fixed rate loans. As part of the hedging consists of caps, the negative impact of higher market interest rates is limited, while lower market interest rates have a greater positive effect on earnings, as illustrated in the sensitivity analysis. Looking at our key credit metrics, they all remain within our internal targets and covenant levels providing solid headroom. Net debt to EBITDA increased slightly to 10.8 times during the quarter and this is typical during acquisition intensive periods as debt increase immediately while EBITDA is built over time. On a forward-looking basis, net debt to EBITDA was 10.1 times. Sibus continues to advance its energy transition with an increasing number of properties being converted to renewable heating solutions, resulting in lower emissions. At quarter end, the value of CBUS taxonomy aligned assets amounted to slightly more than 1.1 billion euros. Before I hand over to Stina for closing remarks, I would like to say a heartfelt thank you. During my seven years as CFO at CBUS, I've had the pleasure of meeting and working with many of you throughout transactions, financing activities, and countless analysts and investor meetings. What I will remember most is the open dialogue and insightful discussions that we've had. And I'm grateful for your engagement and support. It has been a privilege to share this journey with you. So thank you and over to Stina.

Thanks and thank you, Elina. And on behalf of CBUS, I would like to thank you for Really good and important job and great commitment until the last day. So thank you and good luck. And focus forward. We will still have focus on profitable growth and increasing profit from property management per share. We will continue to work with refinancing and hedging to keep stable cash flow. We will continue to work to build offices in our market. It is with presence close to the talents in the market we continue to create business. We will continue to develop our business and evaluate business with ambition to grow further in a sustainable and both sustainable and profitable way. Thank you. No time for questions.

If you wish to ask a question, please dial pound key 5 on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial pound key 6 on your telephone keypad. The next question comes from Oscar Lindquist from ABG Sundahl Collier. Please go ahead.

Good morning. So firstly, on the early termination in Denmark, what can you tell us about the sort of reason behind early termination and what prospects do you see for re-lifting the premises?

I mean the reason that's just that they wanted to do is a discussion between us and the tenant but for us it was we see it as a good in a way since we got the whole contract length with rents right at once. And we also see we have a good possibility to let those areas going forward. So we've already started that work. You could never know, but we have a good feeling about that. Okay.

And what is the current rental value of the property?

I don't have that figure exactly in mind. If you want, you can send an email and I can have a check on that.

Okay, sure. And then on the NOI margin, very strong development Q&Q. What can you say about this? Is there some one-off effects here or how should we think about this going forward?

Yeah, well, as we said, I mean, we do have the one-off 1.3 million euros for the vacating in Denmark, which is affecting the NOI, of course.

Yes, but I think even adjusting for that, the margin is quite strong, is it not?

Yeah, but you need to adjust for that as well. But it's fairly in line if you adjust.

Okay and then the final question on M&A. You have a 50 million euros on the balance sheet in cash now. How should we think about the deployment of this over the coming quarters and yeah let's start there.

Well we will try to deploy it as good as we can as always and So I cannot really kind of say more than that.

Okay, where, or personally maybe the LTV is 59% now, 59.1. You have a target range of 60 to 65, I believe. Where do you want to be sort of in the midterm?

If you look to the slide where we show the LTV now and backward, you see it's been just beneath 60, and I think that's where we should stay going forward as well. So, I mean, if you are kind of thinking of how should we grow going forward, I will say that I mean, there are different possibilities where we are now. We could kind of sell properties and employ capital with a new profitable transaction. We could, through emissions and profitable transactions or payment in kind. So that's the way I see going forward. And it's not, you know, it's not always... I mean, there is always possibilities. Sometimes it's not that easy, but if you continue the work and dig deep, you will sooner or later find a path forward.

Okay, I think that's all from me and good luck. Thank you.

The next question comes from Veronique Meertens from Van Lanchet Kempen. Please go ahead.

Hey, good morning all. Thank you for taking my questions. And first of all, Pialena, I wish you all the best on your next endeavors. Thank you. I was coming back to the lease terminations. Is this already included in the current vacancy number or will this still go up? And maybe on top of that, do you expect any other larger terminations in the coming 12 months?

I mean, it was vacated during the quarter. So, I mean, in the economic vacancy, of course, it's only a little bit there, so to say, because we received rents most of the quarter.

And then, Stina, would you like to comment on Yeah, going forward, no, we don't. I mean, we have always discussions with our tenants about what's going on and so on. But it's not like if there were any major things going on, we need to, of course, say something about that. And it's not.

Okay, that's clear. Thank you. And then machine Maybe on the investment market, so there's quite some activity in your different markets, but could you provide some color to what extent specific asset portfolios are actually of interest for SEBIS in terms of location and pricing? Is there enough opportunities for SEBIS out there?

Yes, there are definitely opportunities. As I said before, if you work hard and dig deep, you always find good opportunities, and it's been a We have so many countries, so many smaller markets and bigger markets in those countries. We have a lot of people out there looking, so we have a pipeline that we are comfortable with and we always have. Then of course, you never know where you could be able to buy or you never know about that, but as long as you keep on And are there any regions that stand out in terms of opportunities or is it more widespread across the portfolio? No, I wouldn't say so. I think we have all the market in mind and it depends on so many things. So no, I shouldn't say that.

Okay, that's clear. Thank you.

The next question comes from Stephanie Dossman from Jefferies. Please go ahead.

Hello, good morning. I was just wondering about the impact on the occupancy rate. You mentioned, of course, new lettings, disposals at high vacancy and acquisition of low vacancy assets. I was just wondering if you could give more color on the new lettings and the rental uplift, if there are some, or those kinds of metrics on the new lettings and the volume, by the way, on that. That would be my first question, please.

What we have shown is the like-for-like that's been shown before, and I think that's the figure. And otherwise, I mean, it's stable. We have not that much vacancies and we are working with them very hard, but I think you should look at it as kind of stable.

Yeah, and as we said also in the report, I mean, the new acquisitions, had an occupancy rate of 99.5%. So of course, they are contributing positive to the occupancy rate and the properties that we sold, of course, had higher vacancies. So that has also had a positive effect.

Yeah, sure. All right. That's fair enough. I was just wondering about the kind of like-for-like portfolio. Okay. What would be your expectations on the indexation for next year going forward, I mean?

The indexation next year? Well, that's not clear yet about next year. That depends on inflation and so.

Yeah, I mean, in Sweden and Norway, it's usually the October index. And of course, that is not finalized yet. But then we get indexation once a year. And then in the other countries, it's depending on when the agreement was signed. And of course, that we don't have the whole year for either. So it's not finalized.

So it depends on what's happening going forward and that's wouldn't know of course.

All right. I have another question on the one of the non-recurring items. I was wondering if you expect anything to pop up in H2 or do you forecast any one of non-recurring items in H2?

Sorry, I didn't get the question. If you have anything going forward?

If we expect any one-offs in the future.

Do you have leasing challenges?

Sorry, we report Q2 and we will report Q3 later on.

Yes, sure, but I was wondering about the potential leasing challenges that you can face. No, that's not the end of the question, sorry. Okay, because I suspect when a tenant leaves, he needs to notify you well ahead of his departure. So I was wondering about all those non-recurring items that you could expect.

I mean, sorry, I mean, for For me, that was taken in Q1, and we don't guide on anything. We don't see anything that we can disclose now for going forward.

All right. And last one, maybe on the staff recruitment you did, how much cost increase does it imply?

We do have some double costs during the quarter, not a huge amount. I don't know if we've guided on that, but I can say that we do have, but it's not a huge amount. But we do see that we will get cost benefits going forward. already in Q3, but then a smaller number and then more going forward when we then have more in-house and less outsourced because the outsourcing part is of course more expensive than having your own personnel.

Thank you. Sorry, just one last from me, please. On the acquisitions opportunities. Am I right saying that the preferred route for CBUS would be to finance by disposals rather than raise equity like you did in the past?

No, that we don't know yet. It depends on what's happening, both what kind of transaction it is, but what kind of possibilities we have on both sides. So that's nothing I could

As a reminder, if you wish to ask a question, please dial pound key 5 on your telephone keypad. The next question comes from Victor Hokanemar from Danske Bank. Please go ahead.

Hi, Stina and Helena. I have a follow-up question. Could you provide some color on yield requirements in your different markets and also potential new European ones?

Could you please say that again? We heard you very bad.

Okay, sorry. Could you provide some color on the yield requirements both in your existing portfolio and potential new deals that you see in your current and potential new markets?

Well, I would say that it differs so much depending on so many things, depending on interest rate, depending on the different kind of competitors at the moment. So I'm not really kind of comfortable Of course, we've seen in the transactions we've made that Finland has been on higher yielded and maybe Denmark lower yielded, but that also comes with a lower interest rate and so on. So yield is one thing, for example, you find higher yield in Norway as well, but then they have higher interest rates. So it's about, I mean, it's about the whole package of everything when it comes to where we should do transactions and how and when.

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

There are no things.

Yeah, we have no written questions.

So thank you for now.

Yeah, thank you.