Cibus Nordic Real Estate AB (publ)

Welcome to the CBUS Q3 2026 report presentation. For this time, listeners will remain in listen-only mode throughout the whole presentation. Now, I will hand the conference over to the speaker's CEO, Stina Lindh Hök and CFO Ann-Sofie Lindroth. Please go ahead.

Thank you and hello. And just before I start, I will inform you about that there will There will be no possibilities to ask questions in this forum, but you are very welcome to reach out to me or Ann-Sofie through a mail after this session. And before I start to present the result more in detail, I will just give you a short brief introduction to CBUS for those who are not familiar with CBUS. CBUS focuses on grocery properties and we now operate in seven countries, Finland, Sweden, Norway, Denmark and the Benelux countries. We are the only listed real estate company in the Nordics focused exclusively on daily goods. Our aim is to generate stable cash flows that grow over time and we pay our dividend monthly. Why focus on groceries? Our daily goods tenants operate in a non-cyclical sector and food is essential for everyone, regardless of their budget or the state in the economy. Grocery stores also tend to remain at the same location for a longer time, reflecting the customers On the map here, almost every dot represents a grocery store, a place where people shop for food every day, regardless for the budget or the state of the economy. So this is the foundation of our stable business. A few things to highlight during the quarter. It's been a very stable quarter in the underlying business and the net operating income increased by 10% compared with third quarter 2025. Profit from property management amounted to 22.4 million compared with 21.8 last year and that is equivalent to 0.27 per share. And its stable business and the occupancy rate remains unchanged from previous quarter at 96%. To continue growth through acquisitions in Finland. During the quarter, we signed agreement to acquire four properties in Finland at a total investment amount of 12.5 million euro. We also see a slightly increase in the earning capacity. It increased to 1.12 per share. We also see continued strength in the capital markets. Interest rates remain volatile and the risk for higher inflation remains. On the positive side though, banks and capital markets remain stable and are willing to support CBUS. An example of this is the refinancing of the Swedish bond on SEK 700 million that we have done this quarter and where we reduced the margin with 140 basis points. We've also seen stable property values. All countries recorded unchanged or positive changes in property values except Finland, where values declined slightly. And that decline was primarily due to higher yield requirements that are affecting the higher market interest rates. But overall, the value of the portfolio has increased marginally by 0.5% since the beginning of the year. And the portfolio yield remains at 6.4%. Now we have 690 properties with a property value of 2.8 billion, not including the new assets. And net operating income in our current earnings capacity totals of 176.5 million euro, and as said, a portfolio yield of 6%. The Nordic Grocery Market is dominated by a small number, as you see here, of well-established chains, making most of our tenants very stable and professional. And our tenants mix remains unchanged, with Kesko as our largest tenant, followed by Tok Money, but also 10 other well-known grocery chains. And our view is that the tenants are well functioning and are doing well. This page is important. It's focused on the strength of our cash flows. And there is a grocery store in 94% of our properties. and 82% of our rental incomes come from those daily good tenants. 98% of our leases are CPI-linked, so follow the inflation more or less, and the average lease term is now six years. And more than 90% of our leases are net or triple net leases. So that means that less exposure to energy costs and other property costs. And another part that make the cash flow less sensitive is the average property size, which is 2,100 square meter, meaning that even if we have large tenants that exposure, large tenants exposure, the exposure And then finally, we also protect our cash flows with a hedging rate of 94%, which makes the interest rates more predictable, at least in the short term. So just a reminder of the transactions during the year, at a total until this quarter. These acquisitions have strengthened the quality of our portfolio and increased earnings per share. We have also sold some properties with vacancies. Change it to new properties with longer leases. So it is important to be in the market always to be able to act when we can use transactions to increase cash flow or equality on the portfolio. And then we also made a few transactions in the quarter as been announced this morning. That was four properties in Finland. The total investment of 12.5 million euros. So it's not a big portfolio, but still a good one. And the occupancy rate is 100% here. The total return is 1.1 million. And the average term is 12.3 years. And it's basically two different transactions. One is an ongoing project that we buy, a K-supermarket in Hämeenlinna, southern Finland, with a 15-year double net lease. And then there are also another transaction with three newly built properties in Pori, western Finland, with a Casco as a tenant. And there we have a double net lease too, with an 8.1 year. On this page, we show the total return for CBUS compared with our pairs as an average index. So the green one is CBUS here. And the total return combines the share price performance together with the dividend. And since we were listing 2018, CBUS has delivered a stronger total return than index. And among our peers, CBUS has been in the top five for total return every year and has been number one over the past five years. And there is, of course, many ways to look at performance, but this is one important key figure that I think is important to highlight for CBUS. We are always in different discussions with our tenants, and these are just some examples. We had a Prisma hypermarket opened in October 1926, and it is the first Prisma store in Tusulo, Helsinki region, and Sibu's first hypermarket leased to S Group in Finland. Also, we had another example where Sibus & Salling Group agreed to expand and develop Netto's store in Lystrup. And that investment includes both extension of the store and improved parking facilities alongside an extension of the lease agreement. And leasing remains a key focus going forward. And now over to you, Ann-Sofie.

Thank you, Stina. Looking at the P&L in the third quarter, net operating income rose by 10% to 44.2 million euros. Administration costs were up by 600,000 euros due to organizational development. Interest costs increased with 2.7 million euro affected by inclining rates and a larger debt portfolio as well as costs related to refinanced bonds. Profit from property management rose to 22.4 million euros. Property values fell by 12.3 million euros from year-end, mainly reflecting slightly weaker valuations in Finland. At the same time, we recorded a larger gain on interest rate derivatives. Overall, profit increased to 28.5 million euros compared with 19.4 million in the comparable quarter. Earnings per share were 35 euro cents compared with 23 cents last year. This is the earnings capacity for the portfolio as of the 1st of October. Just a reminder that the earnings capacity is a snapshot, not a Some of you may see that we have changed the disposition of earnings capacity. The purpose is to make it more transparent and in line with the reporting period. The life-for-life you find directly in the earnings capacity rather than on a separate table. Net operating income has increased since January mainly through acquisitions and In the Life for Life portfolio with rent indexation. Regarding the acquisitions, the ones press released today are not included in the earnings capacity. New loans in relation to acquisitions have increased total financing costs. The two bonds that we refinanced during the year decreased the margin by 190 and 140 basis points. Adjusted earnings capacity was 91.8 million euros or 1 euro and 12 cents per share. That compares with 1 euro and 8 cents at the start of the year. Our business spans seven countries. Finland remains our largest market and segment. It contributed 21.5 million euros of net operating income in the quarter, almost half of the group total. Belgium and Denmark were the next largest contributors, followed by Sweden. Of the total property value, Finland represented 47%. On the balance sheet date, the properties had a value of 2.8 billion euros. Net loan-to-value was 59%. This compares net debt with the value of the properties. Secure bank debt represented just under half of property value. We also use unsecured bonds and hybrid capital. The hybrid capital is classified as equity in the balance sheet and is not included in the LTV. APRA net reinstatement value was about 1.1 million euros or 12 euros and 89 cents per share. This is a property sector measure of net asset value with the exclusion of deferred tax. As Stina mentioned before, the average remaining lease term was six years when we exclude the Belgian break options. When we include those options, it was 4.4 years. The lease terms together with a net operating income margin of 95% and an occupancy rate of 96% provide a stable base for earnings. Indexation of 89% of rental income further support this stability. Bank loans remain our main source of debt funding alongside unsecured bonds. On balance sheet date, the company had total interest bearing debt of about 1.7 billion euros. The average interest rate was 4% and average capital maturity was 2.1 years. Sixteen percent of debt mature within the next 12 months, of which 28 million euros were bonds redeemed on the 2nd of October. Most of the bank loans maturing in the coming 12 months are under negotiations. We manage interest rate risk through fixed rate loans, swaps and interest rate caps. The chart shows that only a small share of debt is exposed to variable rates. All else equal, the negative effect on the profit would be 1.2 million euro if the market rates would increase by one percentage point. A one percentage point fall would affect the profit positive by 3.5 million euros. The effect is different because caps limit the cost of rising rates while allowing us to benefit when rates fall. As mentioned, the LTV was 59% at the end of September. We intend to maintain the level we have had historically. We have a good margin to covenants. We follow the risk limitation in line with other key ratios. such as net debt to EBITDA. In addition, we have secured cash flows that support the LTD level. Reported net debt to EBITDA was 10.5 times or 10.1 forward-looking. Debt can rise immediately when we buy properties while the income builds up over time. That is why we look at both the reported and forward-looking measures. ESG initiatives are integral to our day-to-day operations. Since 2022, CBUS has had a science-based target to reduce scope 1 and 2 emissions with 42% by 2030. We achieved this target ahead of schedule by switching to fossil-free alternatives for both electricity and district heating. We are committed to achieving net zero across all scopes by 2045 Energy efficiency initiatives include indoor climate upgrades, energy recovery and solar panel installations. Grocery stores are an important part of local communities. They are accessible meeting places, often close to homes and public transport. They are large employers and are often the entry to the labour market. Sibu said 335 million euros in green bonds outstanding on the balance sheet dates. Over to you, Stina.