Diös Fastigheter AB (publ)

Good morning everyone and welcome to the DIOS Intron report January to September 2025. My name is Brieca and I will be coordinating your call today. During the presentation you can register to ask a question by pressing star followed by one on your telephone keypad. If you change your mind please press star followed by two. And for those of you who have joined the webcast today you can also ask a question on the platform. I will now hand you over to your host, Johan Dunmar, Chief Investor Relations Officer, to begin. So, please go ahead, Johan.

Good morning, and welcome to the SQ3 2025 results presentation, focusing on the period July through September. My name is Johan Dunmar. I'm Chief Investor Relations Officer. I'm joined today by CEO David Carlson and CFO Rolf Larsson. In today's presentation, we'll begin with a brief overview of our third quarter performance, followed by a deep dive into the financial results. We will then provide a market outlook and conclude with a Q&A session. Thank you for joining us, and with that, I hand over to David.

Thank you, Johan, and good morning all. Our focus is clear and simple, weighing to increase revenues, reduce costs, and make profitable investments. This quarter confirms we're on the right track. Despite the challenging economic climate, our occupancy rate remains stable at 90%. Leasing activity remains strong, with several major deals in central locations contributing positively to both cash flow and property value. At the same time, we continue to divest assets at book value, strengthening our balance sheet and confirming liquidity in the markets. Financing conditions remain favorable, with lower margins and declining average interest rates. We have some one-off costs related to bond buybacks of $5 million affecting net financial items per quarter that will have a positive impact on net financial items coming quarters. The past decade of near-zero interest rates enabled the real estate sector to prioritize growth through acquisitions and new developments. often at the expense of operational excellence and organic value creation. Our strategic focus is toward the fundamentals of property management and building strong, sustainable cash flows. Over the past 18 months, we have actively rotated assets to strengthen our portfolio, positioning it for long-term value creation. This transformation supports our updated financial targets, which emphasize sustainability, profitability, resilience, and capital efficiency. To clarify our commitment to long-term profitable growth, the Board has adopted new financial targets. Rotating from return on equity of 12% annually, we aim to increase our income from property management per share by 10% annually, while also growing our net asset value, expressed as EPRA and RV per share by 10% per year. These are ambitious, yet entirely achievable goals, reflecting the value creation potential we see in the company today. This includes, among other things, strategically located vacancies that offer strong upside. Our market has shown resilience in the face of rent increases driven by CPI adjustments. We continue to see solid payment capacity among tenants. and our portfolio is well aligned with demand. We own the right properties to capture payment willingness through a relevant and competitive offering, an important factor in achieving our financial goals. In addition, our climate target to half CO2 equivalent emissions by 2030 remains firmly in place, underscoring our commitment to sustainable value creation. Looking ahead, our strategy is built on three pillars. One, operational excellence, driving NOI growth through active management and cost control. Two, selective development and reinvestment, focusing on projects with signed leases and strong tenant demand. Three, disciplined capital allocation, ensuring every investment contributes to long-term value and supports our financial targets. While the targets are challenging, They are well within reach given our current position, strategic direction, and the strength of our underlying assets. The direction is set, and now it's all about execution. Rolf, please give us some more insights to the result.