Corem Property Group AB (publ)

Välkommen till Koren Property Group Q4 2024 presentation. Under den första delen av mötet kommer deltagarna att vara i lyssnarläge. Under frågestunden kan deltagarna ställa frågor genom att trycka fyrkant 5 på sin telefon. Jag lämnar nu över konferensen till talaren CEO Rutger Arnhult. Varsågod.

Tack så mycket. Här sitter jag, Rutger Arnhult, CEO i Koren. together with Emelie Möndahl, Evel Andén and Anders Karlsson, to present the company's fourth quarter and last year as a whole. Last year was a very, very eventful year. High activity on all fronts for us. We have thought about an incredible amount of rent agreements during the year. We have put forward a large part of our obligation financing. And we have also continued to sell off many small properties. Not really the volumes that we had during previous years, but a nice volume. All this is to strengthen our financial position and create opportunities for the future. We have a very nice project development portfolio and we have a lot of fina möjligheter med våra hyresgäster och där vill vi satsa på att skapa möjligheter för att göra det. Också för att trimma balansräkningar för att på sikt få lite bättre finansiella marginaler hos banker och på obligationsmarknaden. Vi gjorde också under fjolåret en ny emission som också är ledig i att stärka vår finansiella ställning. As you all know, the conjecture has been a bit shaky. It has been stumbling for a few years and we have been waiting for the interest rate to drop. Now the interest rates are back at the two-year level in 2020. Of course, it takes some time before it takes effect, but I think when you start to see signs that it's starting to take a little bit of speed. But it takes a little time, but the hope is that we will see a little turn during this year. Till sommaren eller under hösten får vi se. Men det är någonting vi i varje fall hoppas på. Det är viktigt för oss att varje CIS-stöd känner att de har en bra marknad, de har bra. Och som sagt, det krymper inte, men det växer inte så mycket heller. Det står att stampa. Så det hoppas vi på. Våra fastigheter då? Vi har ju en portfölj som har grymt en aning och då är det inte så intressant att titta på hyresintäkt mot hyresintäkt men däremot om vi gör det på jämförbart bestånd så har vi fått upp hyresintäkterna med ungefär 3% under det gången i året och driftsnettet med 1% under året. Inflationen driver också kostnadsökningar men vi har ändå lyckats ha hyresökningar som har ett marginellt högre så positivt driftsnettet på helheten. In terms of disclosure, we have been able to have the same level of disclosure today as we had a year ago. Then we have received some value adjustments during the year. This includes our result. We also received some under the Q4, where we make a large part of the external values. And then we received some proposals due to a number of claims that came during the last quarter. And we lost 1.2 billion in value during Q4. And a negative outfall throughout the year as well, as a whole. But let us be positive and believe, at least I do, that we have now seen the top on Gilden och kanske de sista värdejusteringarna. Sen om man tappar hyresgäster som det här DLB språk så får du alltid justeringar och sen när du hyr ut så är de åt andra hållet. Där justeras det ju löpande ut och in hela tiden. It's normal. But we have also received a lot of yield adjustments. It may not have been thought that you would get, but they have fallen into Q4 as well. But that's where I think we have seen the top on the yields. But we'll see. The future will show. In the USA, we also got some adjustments due to the fact that the long-term interest rate has gone up. So the interest rate goes in the other direction than what we see now in Sweden. If we then look at how the interest rate has been for the spring, we see that we entered the Q4 with a very high average interest rate. We had it with us for a bit in the quarter and then we managed to get some effects from falling STIBs. And then we also managed to put off some loans during the quarter and take some interest swaps at a slightly higher level. So we managed to get our average interest rate down from the last last September to last December from 5.0 to 4.6. It has not fallen to 4.6 during the quarter, but we are going into the first quarter of 2025 with an average rate of 4.6. Så det är positivt. Sen har vi haft en marknad där vi har haft en bra aktivitet i vår verksamhet. Vi låg på plus ända fram till sista september. Väldigt stark nätutredning. Sen fick vi en stor uppsägning. avflyttning av en yta i Kista hos Ericsson, som har blivit omtalad. Den får vi hyra för under det här året också, men dock med vår nettuftgöring. Så vi fick ju en negativ nettuftgöring under just Q4, men vi landar ju trots det hela året på en positiv siffra på 61 miljoner, och den är vi väldigt stolta över. There are a lot of rental agreements that have been signed. And there are a lot of agreements that have been renegotiated and signed. In total, we have written 699 new rental agreements during the year. And 160 have been renegotiated. We have made 860 new rental agreements during the year, which is a remarkable figure. But you should note that we have more than 3,000 rental guests, but 860 Avtalsskrivningar är ändå en stor siffra. Ska vi nämna några, det är riktigt bra. På den svenska sidan så var det trevligt att hyra ut med Kajen, Majorna i Göteborg, 3 500 kvadratmeter till kustbevakningen i Göteborg. Också väldigt trevligt att i Kista hyra ut till OHB, Micronic, Transcom, med flera totalt yta på de 3 på 12 000 kvadratmeter. Jättepositivt. Then it has rolled on very nicely on the American side, the promenade, where we have two projects that are in full swing to be issued. We have signed 19 agreements during the year and we have currently issued 28.7, which is the only one, to 100%. That was 95% at the change of year. And we have a nice property on 245 Broadway. To 77% per year shift. And it is still 77% per day. With some leads on the way. Now we don't have more leads on 287. So we have to ask for them to send them to 245. Because it has become full. As I said, we have continued to focus on our financial side. We have during the year. We have solved 5.5 billion in obligations and are now part of 9. We have, at the beginning of this year, solved another 1.5 billion, so we have solved 7 billion in obligations. But we have also gone out and put in new obligations. In 2014 we put in 4 billion and so far we have put in 1 billion. So we have solved 7 and put in 5 new ones. And then we go into the presentation and start to spread some leaves. And go back to one side, there we have the current situation. Still, we have not left these houses that we sold in Halmstad now. So we have 289 properties and we have almost 2.3 million square meters. And we have a property value of 55 billion. We are in 12 cities. I många av städerna tillhör vi en av de större aktörerna och ibland också är vi den största. Vi har ett hyresvärde på 4,3 miljarder. Och sen utöver det här så har vi en byggrättsportfölj med möjliga projekt på över miljoner kvadratmeter. Så vi har mycket i böckerna som vi kan jobba med för framtiden som skapar möjligheter. Some pictures of projects and nice things that we have. You can see it in this picture, where we are planting weeds today. You can see it in this picture, where we are planting weeds today. You can see it in this picture, where we are planting weeds today. You can see it in this picture, where we are planting weeds today. You can see it in this picture, where we are planting weeds today. You can see it in this picture, where we are planting weeds today. You can see it in this picture, where we are planting weeds today. You can see it in this picture, where we are planting weeds today. and you can see the Elite Hotel in Uppsala, and you can see a very nice hotel in Copenhagen, and then you can see the nice hotel at the station in Västerås that we have built in Stordalen. A small snapshot of what we have done and are doing during the years. If you look at the cities we are in today, where these 55 billion are divided, 38% in Stockholm, and Dristar has joined us to show how it is distributed in different regions in Stockholm. And then you can see that we have a region in the middle, a region in the south and a region in the north. Then we have 7% in Uppsala. We have 8% in Västerås and Örebro. There are two newly developed facilities in Örebro and then the rest in Västerås. Linköping, Norrköping, Nyköping, i de orterna är vi den ledande kommersiella aktören, vi är största. Det är totalt sett 15% av vår totala volum. Och sen Göteborg, Borås, ligger vi med 11%. Det är faktiskt bara en fastighet i Borås och sen är resten i Göteborg. Malmö, Halmstad, 7%. Copenhagen, 3%. We have sold off a little Copenhagen, so there are actually only four properties left. Very nice, but four slightly different characters, all four. So it's a mix of nice houses, but different types of houses. And then New York, 11%. And there is about half the value in the form of a project, and half the value in the form of a project that is ready for sale. Vi jobbar med våra fastigheter i löpande år och försöker vara väldigt nära kunderna. Vi har all förvaltning in-house och egen expertis inom de flesta områdena. Långa relationer och nära relationer tror vi är otroligt viktigt för att lyckas hyra ut och behålla hyresgäster. Jag tror det är en av grunderna till att vi som är ett av de bolag trots den utmanande marknaden lyckades få en positiv nettotyrning. Vi har också sett det i NKI-undersökningar under året, trots utmanande tider och en svag ekonomisk tillväxt i näringslivet. So har kunderna faktiskt rankat upp oss och vi har gått ifrån att ha ett nöjd kundeindex på 72 till 75, vilket är högt. Det är vi otroligt stolta över. På den här sliden kan ni också se hur vårt bestånd fördelas. Ytmässigt så ser ni att 50% eller 51 är kontor och resten är övrigt med logistik på 23, retail på 9 och sen other på 17. En mix. Man kan också faktiskt poängtera, som inte står här, men att av våra kontorsjuicester så är ju 18 procent stat, kommun, landsting. Så att där har vi en stabil och bra motpart som vi ständigt gör nya saker med. Ska vi summera året i lite mer siffror så fick vi hyresintäkter på 3,7 miljarder. Vi lyckades skapa ihop a management result of over 900 million SEK. We have increased the existing revenue by 3%, which we are pleased with in this market. We have a substance value of approximately SEK 16 on our A- and B-archive. We managed to achieve an ICR of 112 on 1.7. And our average yield in the values is 6. It went up from 5.9 in Q3 to 6.0 in Q4. Hence also some of the value adjustment. But we ended up with a value of 55 billion. Net sales as I said 61 million in the year, positive and we are very proud of that. Loan-to-value is stumping during this period, and it's a bit... Since we got negative value changes, otherwise it would have gone down, but unfortunately it's still there. But with our job, it doesn't increase in any case, that we have trimmed the balance sheet, and that's good. And then we have a average rate that has gone from 5 to 4.6 during the quarter, so we start off with 4.6. Så det känns bra. Det känns som att vi har bättre förutsättningar att gå in i året än vad vi hade under fjolåret. Nya uthyrningar, för att nämna några. Swisslogg i Linköping, jättekul. En stor uthyrning på 1800 kvadrat. Mychronic, ytterligare en uthyrning i Kista på 3500. Det är alltså inte den stora vi gjorde tidigare under Q3an. Vi har gjort en fin utredning i Erikslund i Västerås till intressanta hus. Den är på 2600 kvadratmeter. Och sen har vi då under kvartalet satt sju olika avtal på Manhattan. Det är 4700 totalt. För att nämna några, det här är ju som ni förstår en litet, litet axplock av alla dessa 860 nya avtal. The curves that show, we got as I said in Q4 that the net profit was negative but overall positive. The housing value goes up per square meter, the length of the contract is over time basically unchanged as it looks like in the graph here. As I said, 3,100 companies. You can see an axis block down here. We have 5,600 different leases with these. And as I said, the economic growth rate is 86%, and we are working to raise it, of course. And the share of the public sector, 18% of the office sector, as I mentioned earlier. Investments. During the last few years, we have been aware of Marknaden har inte funnits för förutsättningarna har varit sämre med högre räntor och en tunnare eller svagare ekonomi. Det går hand i hand. Vi har också velat vara försiktiga med planboken. Vi har hållit igen. Vi har fullföljt de projekt som vi är igång. Sen tar vi hand, så det blir mer och mer hyresgästanpassningar om byggnad och för när vi hittar hyresgäster. Vi bygger ingenting på spekulation. Nu har vi en rullande siffra här på 1,3 miljarder i Q4. Likadant tittar vi framåt så kommer det plana ut att kanske ligga på en miljard eller kanske till och med något under det. Men då blir det större och större andel hyresgästanpassningar och utveckling av befintliga fastigheter. Vi sparkar inte igång att bygga några nya i den där siffran. Det kan komma längre fram, för vi har ju som sagt en attraktiv länbänk, så det kan komma längre fram. Looking at what we have done, we have raised money in these two projects, and it starts to bear fruit with 100% growth, respectively 77%. We know that we have stated a goal of reaching 70% in both of these projects before the change of year, and now we have reached 77% respectively 95%, so that's good. Goda förhoppningar om att den här positiva trenden kan fortsätta i själv 45 så att vi får se ytterligare stigande utredningsskador i de kommande kvartalen. And then we have on the project site, a site that does not put any money on your building, but we are out and soldering the terrain, we sell the case, we meet potential investors, potential buyers also for that part. We are not a stranger to selling the project to someone else who either wants to build it or own it for themselves and so on. It is a positive but incredibly strong market. och otroligt starka företag som håller till runt den här byggsajten, potentiellt en fantastisk byggnad man kan göra här, 33 000 kvadratmeter. Then we have talked about 66,000 square meters or the double size. And then in that case it is a project together with our neighbor, DWS. And they are also open to solutions in the future, whether it would be sales or projects. But what is important to know is that we can be part of the project, but we will not put in any money. Then we put the project to waste. So it will not be cash flow draining for us. Utan då skapar vi värde ihop i projektet, eller så säljer vi och tar hem då. Låter någon annan göra projektvisen, så får vi en mindre del av projektvisen. Så där har vi alla möjligheter i världen. Det som är fantastiskt är att det är en väldigt stark aktivitet på gatan och bland hyresgästerna i närhet. Var lägger vi fokus på att utveckla hus då? Förutom då att vi färdigställer de här projekten på Munhatten. Jo Globen, Söderstaden. Det har ju en pågående projekt. Hela området händer ju otroligt mycket och där är vi med och ser på möjligheter och vi har också pågående omställningar av ytor löpande. Uppsala Business Park, samma sak. Utvecklar vi ser på möjligheter framåt. Västerås City, runt stationen. I Västerås har vi väldigt attraktiva lägen där vi tittar på att kunna utveckla och titta på partners, sälja av andelar och så vidare. Vi är inte främmande för att leta av andelar eller unika bitar i de här. Har vi hittat en nyårshälsa får vi ett större värde, så det är så vi försöker jobba där. I Stockholm norra, där utvecklar vi hela tiden. Just nu bygger vi om och utvecklar för OHB och Micronic framför allt. And then we have started sketching and working with the areas that Ericsson will leave. We will try to put them back in the housing sector and we are working on that project. So the most likely thing is that when the areas disappear, when they become empty, they also disappear from the office market in Stockholm-Norway. And instead it becomes a housing sector and then we are with and together with the positive decision from Stockholm city, the image among the city. Transactions, we have sold a lot. We also sold under Q4, you have read that. And we have also sold 8 properties here in the same day for 0.5 billion kronor. We will continue to trim the portfolio. Av olika skäl, dels stärker vi vår finansiella position, friar vi pengar så kan vi också trimma bort de dyraste skulderna. Vi har fortfarande en del skulder som vi tycker är alldeles för dyra, de vill vi helst bli av med. Och sen vill vi stärka vår soliditet, vi vill stärka vår balansräkning, vi vill få ner våra skulder för att kunna åtnjuta lägre marginaler framöver, bättre villkor på operationsmarknaden. Så det är strategi. Och de projekt vi gör i befintliga hus för att driva hussteknarna, driva husen och hålla dem moderna och hållbara. Tittar vi på värderingarna, vår volym, så ser vi att vi har krympt och planerat ut. Gyllen har kommit upp, vi har då gått från 4,9 i snittdjäl upp då till 6,0. Min best guess, min gissning och min spaning är att det här är nog en form av botten. Attraktiv portfölj, fina lägen i starka städer. Vi har i princip inte några hus utanför någonting som inte anses som väldigt starkt och bra. Och vi har bra efterfrågan i marknaden. Så det är bara att jobba på. Och sen så tror jag att de räntesänkningar vi redan har fått och de möjligheter man får av att säkra långa attraktiva räntorna kommer nu så sagt att ligga through the real estate market. So I think the prices come from these levels being kept open and that we do not see a continuous decline. And we'll see. I think we know the sign there. So a sign of a little positive economy, a sign of a little stronger real estate market. Financial position. We have then pulled down the shoulders and we had a rolling ICO of 1.7. We monitor it very carefully, it is important for us. we have in the last quarter to the middle of the quarter with us. Now we will get better quarters forward and we will have a lower average income of 4.6. We will be able to get a little better margins and we will be able to trim off expensive loans. So here we are working. LTV today 54, we want to get it down and that is why we continue to do some sales. A little repetition of what I said. Here you can see how the interest rate has gone. And now it's ticking downwards. We have also seen the ICR come down, but now I think it has flattened out. So we feel stable for this year. The volume of obligations has also gone down. As I mentioned, we have sold 7 billion and we have taken 5 new ones, so we are down and decreased. And now we are down to just over SEK 5 billion after the new obligation and amortization at the beginning of the year. Here is the stretched line that shows the one that is gone. Over SEK 5 billion, 18% of our total loan. And you can also turn it around and say that 10% of the property portfolio is financed with the obligation. Whether it should be planned out here or become smaller, we will see. But it also depends on the market conditions, if we buy or sell. But right now, as I said, it's about that we continue to sell a part of the house, invest if we have to. Count with an outplanning somewhere here. We continue to look for objects that we don't think fit, we sell them off. We work with financing ourselves better, important for us. We work with being able to pay back expensive loan structures. Vi tittar också på möjligheten, det ligger på bordet det här året, att köpa tillbaka vår hybrid. Den är ju ett dyrt instrument, den vill vi bli av med, såklart, när möjligheten finns för det. Och vi försöker förlänga vår lånestruktur, det känns vettigt att göra det. Today we have a swap structure of 25 billion SEK and an average swap rate of 2.0%. It is on average for three years. So it's okay, but we are constantly working to keep it long and see if we can extend it when the levels are right. Så det gör vi också och sen så försöker vi fortsätta att hitta den optimala mixen av kredit hos bank och obligation, certifikat och annat att hitta där och då tror vi att man ska komma ner lite i skuldsättningen för att få ännu bättre förutsättningar och det jobbar vi då som sagt på. Fokus på ICR. A bit of sustainability. We are proud of what we do. We certify the properties on the running line. Taxonomy sets requirements. It is very important that the tenants also set requirements. We have sold off a number of properties that have had low energy consumption. But still, it is often the case that industrial properties and low-energy properties are much more at the level of consumption compared to the real estate market. So we should have jacked up, but we have at least kept up. We are at 80 and 80 kilowatt hours per square meter is actually top 15 percent in the sector, so we are very proud of that. But we are not satisfied with it, so our goal is to get down to 65, even though we are on average top 15 in our segment in the sector. Satisfied customers, as I mentioned, 75, we are very pleased that we got an uptick there despite a tough market. Then also internally, it's harder to work with sales and fight, but fighting in the market, we have actually also managed to lift our engagement index with the employees to 85 plus 3 as well. So it's incredibly fun. This is a goal we have had in the long run, but we have achieved something in the short term, so we are proud of that. Forward. Yes, we are well positioned geographically. We have a nice portfolio. We have an attractive portfolio, both on the investor market, but also for the tenants. We are going to work with filling our houses. That is our main purpose. We are going to take care of them and make them more effective in the future. We are going to be attractive on the financial market and therefore we continue to trim. And then we are going to look at all the opportunities we can to create shareholder value. And we are flexible, we get questions about repurchase, we get repurchase questions about the hybrid, we get repurchase or questions about sales. We are not foreign to any of that, so we will of course continue to optimize ourselves. And then sustainability, of course, continued focus on that for our part. All in all, we think that the conditions for 2025 feel better than the conditions for 2024. We believe in the change in the economy. We believe that the restrictions will be lifted and that it will be positive. Det känns ju inte unikt att tro det. Och vi vet att räntenivån är otroligt viktig för fastighetssektorn. Och det kommer gynna oss och det kommer gynna våra partners i branschen. Våra konkurrenter. Och det är bra att hela sektorn går lite bättre. Så att vi med god förhoppning inför 2025, ja, summerar där. And then there is the possibility to ask questions if you have any questions. That's something I forgot.

During the Q&A session, the participants can ask questions by pressing square 5 on their phone. If you want to return your question, please press square 6.

I got a question, I can take it, I got some here on SMS. A question I got if we had a mandate for repurchase, we have it, we always take it on the vote. So there is a mandate for repurchase if you choose to do it, we always consider it, we have repurchased, we can do it again. I got a question about the hybrid, if you have to buy it on the market and pay the premium. There it is so that at every quarter change, you can that you want to solve the hybrid and then you solve it to a nominal amount. So you can do that at each quarter change. I got a question about allocation and there is the proposal to the stockholders that we maintain the allocation, it is modest, it is 10 or a share. It is divided quarterly, so it is distributed over each quarter with smaller amounts. So we have also suggested that the company vote. Those were the three questions I got. Is there nothing else? Yes, we have. Where do I find them then?

There are two of them. The next question comes from Staffan Bulow from Nordea. Please.

Hi, Staffan here, can you hear me? Hi Staffan, we can hear you. Hi, great. I was going to ask about New York, you mentioned 28 and 7, it is fully rented, 1245 Broadway is 77% rented. How do you see the New York assets in the future? Is it something you want to keep on the balance sheet or is it something you want to sell?

Vi kan absolut sälja dem. Det är inte så att vi är några huskramare och att vi tror att aktiemarknaden har jublat över att vi har tillgångar annars i Atlanten. Det är väl snarare så att vi tror att aktiemarknaden skulle uppskatta om vi sålde de fastigheterna, även om vi tycker det är fantastiska hus. So we are open for that. Now that the houses are so well identified, they are sellable. We have said that they should be up to an 80% clearance rate so that you can get a fair payment. And there we are, in principle, we are at 100 respective 77. Good hope that we are above those 77 within a quarter or so. So, absolutely. We are not the exception to ease those two objects. It is also the case that it would mean that expensive project loans would also be solved together with that. So there is a point there when it comes to, you think of ICR, you think of average income and so on. It makes a difference.

Yes, okay, thanks. Then I think when it comes to the online news, 2024 as a whole has been a success with a strong positive online news. If you look into 2025, where do you think you are? We know one transfer of WSP that is quite large, do you think that you can deliver positive net transfer in Q1 and for the whole year 2025 also with that transfer from WSP?

I think so here that WSP facilities, I think it is still very attractive and I think there are a few different tracks on it that you can work with. And we are doing that now. And I think it's a pretty exciting case, VSP. So I am quite convinced that it will be filled with a single tenant property even in the future. It is a single tenant property of over 14,000 square meters. It is incredibly good. The demand for it is very high. Så det är nog den bästa, om man ska ha ett projekt att jobba med så är det ett av de trevligaste projekten att jobba med ska jag säga. Tittar man på den ytan som Ericsson lämnade i Kista, den ska inte vi hyra ut som kontor igen, den ska vi ställa om till bostäder, det ska bara bli så. Det är möjligt att en liten del av den, den är 33, det är möjligt att 13 blir hotell. If there was a decision about the trade fair in Kista, the whole thing would be a hotel. But if we go as it is today, you can think of BRF, hotels and rental houses. The important thing is that we should not put money on an office that will then be in the market. It is important that we as big owners understand and see the benefit of building a mixed city, a better, nicer part of the city, with life and movement, and that it creates housing there as well. A lot is happening in the area, but can we contribute further? It's great. Then, with that said, it's not certain that we will put down the money, but that we will find someone who wants to invest in it. A very interesting upside is that come in on such a property and use it as much as possible and build sustainable housing based on something without having to use a single cement bag, then you can make the greenest new production of housing that is possible. Possibly except if you build something completely in wood, without concrete pillars or without concrete foundation. To compete with that, you almost have to build something on stone slabs in wood. och inte har någon betonggrund. Det kommer bli otroligt, alltså kommer vi inte kunna nycka hundra procent det som, nästan hundra procent det som redan är gjort så att säga. Så det blir hållbart och bra, det blir snyggt, det blir fint för området, det finns redan nu skisser på hur det ska komma att se ut och riktigt trevligt. Och vi är inte dugg i oroliga för efterfrågan heller på adressen utan det där är tio minuter, tolv minuter med promenad också. 12 minutes before Nordenplan, so that's where it gets attractive.

Then I thought about what you said about the hybrid, that you can solve it with every quarter change. Is that something you want to do or will you come back soon? You have repurchased some of the hybrids this quarter and repurchased some of the hybrids. Is that what you want to do, to buy back in the market, or do you want to solve the whole quarter change?

We have both options. We have already bought back in the market, so we can buy in the market as well. But we buy because we have the opportunity to call it in for a fee, so we are not so inclined to pay up. It is better to collect grain so that you can take it all at once. We have received recommendations, but then we have received that we should pay up. And then it becomes a better economy to collect grain until you can take the whole thing. It is definitely a requirement. And it can be in combination with a sale or something, then you feel that we have free-grown means for that. And then, of course, it is also necessary to monitor the number of nickels that the ICR does, so that we strengthen it as well. But in terms of cash flow, it is very nice to get rid of hybrids.

Just then. Then one last question from me. It concerns Finansnettet if you think about activations. I assume there will be some difference in 2025. Can you tell us what activations have been in Q4 and what you think about activations in 2025?

Can you say that, Anders? 89 in Q4. 89 million have been in Q4. So, of course, it's all the time in line with the fact that these big projects on the internet were implemented, so it became that you took a larger and larger proportion. The reason for the implementation was the project load. And then when you go over a certain level, is it 80 percent? Then it becomes 100 percent. So the last 20, of course, then you go from, then you take, so it goes from 80 to 100 very quickly.

Okay. Good, I think I've answered all of my questions. Great, thank you very much for answering.

Thank you.

The next question is from Niklas Wetterling from DNB Markets.

Please go ahead. Hello. I have a small question, if possible. Leasing debt increased by 50% in the quarter to 1.8 billion. What does this have to do with, and can we expect that the leasing costs will also increase by 50%?

It's about... Sorry, Eva. Yes, Eva, did you say that? It's about the compensation of the debt. where we have calculated it with the implicit interest rate.

Yes, it is the implicit interest rate that the city sets in its calculations, quite simply.

Apparently, the property companies are different there, but we have discussed with our revisors, and this is the right thing to do.

So it's not a new threshold, it's just a new value, and it goes up and down. So it becomes like a zero-sum step.

It blows up our balance sheet. Yes, so the cost of our tax returns is still there because we have activated it earlier and we have used a different percentage.

It blows up our balance sheet, but it has no effect on the balance sheet.

So this has not changed? No.

Okay, that's enough for me. Thank you. We had it up in the revisions a year ago. Half a year ago.

Thank you for the clarification.

Yes, thank you. No other questions? That was it. We thank you for that. Shall we summarize this then?

The next question comes from Victor Hökenhammar from Pareto Securities.

Hello, two short questions. Hello, Entra, Balikastell, NBN. You can feel the answer to this, but about negotiations 24, can you say anything about them? In general, how they have been? Yes, exactly. If there are unchanged conditions, something down, if you can get any view on that.

In general, I should say that there have been unchanged conditions. And then there are some that are out there. If you have... Om du är stor och har ett avtal som löper ut så kanske du blir lite tuffare och vill förhandla om det finns en möjlighet. Det beror lite grann på hur det ser ut. Vet du att det finns konkurrerande lokaler väg i väg och du vill sitta så kan du spela korten smart. De flesta är inte så på hugget på det. And now the indexation has become very low. It was not so high in October. And then we have inflation that is also higher. I think that question is a bigger question for some others who are sitting. We have such low average prices, so there is not much to play on that. I think it is a bigger question if you have centrally subsidized Locales som anses dyra där hyresgäst tjänar, gud vad höga hyrorna är, vill betala 10 000 eller 8 000, då tror jag man får den diskussionen mycket oftare. Speciellt också om man läser i tidningen att det har blivit lite mer vakanser på kontorssidan, då vill man pressa. Då får man vara beredd att flytta, eller så kanske hyresvärden då är beredd att prata lite. Jag tror framförallt det där är dyra, dyra adresser. Then I absolutely think that it's much more, then it's probably all the time, I should say. Then you have it in every transaction.

And then I just thought, short, Tomsten on Park Avenue, what is it booked for per last December?

It's in the round as long as 3 million.

3 million still. Ah, but great.

Yes, thank you. And it has also received a new external rating, so it's 3 million on it. You have it at about an exit yield of 5.5. 5.5, yes. And then it is the best street in Promenaden, then it is there.

Absolutely. That was my question.

Thank you very much. Yes. Thank you. Det finns inga fler frågor just nu, så jag lämnar över ordet till talarna för eventuella avslutande kommentarer.

Ja, då avslutar vi. Vi tackar för er tid och säger att vi finns på telefon om det finns någon ytterligare fråga man vill ta på tumman här, eller om man kommer att få någon fråga lite längre fram. Det är bara att ringa. Och så får ni ha en bra dag här. och kastar över vår rapport till Sekulo och alla annars. Det är hetska tider här.