Diös Fastigheter AB (publ)

Hello everyone and welcome to DIOS interim report presentation for January-September 2026. My name is Johan Dörnmar. I'm the chief investor relations officer. Joining me today are David Karlsson, our CEO, and Rolf Larsson, our CFO. David will begin this presentation with the key highlights from the quarter and our strategic priorities. Rolf will then take us through the operational and financial performance in more detail. And after the presentation, we will open up the line for questions. With that, I would like to hand over to David.

Thank you, Johan, and good morning all, and thank you for joining us. The third quarter was not a strong and stable quarter for Deus. We continued to deliver on the fundamentals of our business, active leasing and profitable investments. Together, these activities strengthen our cash flows and create long-term value in the portfolios. Activity increased significantly in September after the seasonally quieter summer months. At the same time, we continued to identify and execute investments based on premises in the right locations, long-term customer relationships, attractive returns on capital, and value creation. Our operating model continues to deliver. We combine local market knowledge and close customer relationships with the financial capacity to invest profitably and create value over time. Let me take you through the key highlights. This was a strong and stable quarter characterized by high business activity, positive net letting and continued profitable investments. Net letting amounted to 4 million for the quarter, 29 million for the first nine months. Following the seasonally quieter summer period, strong activity in September more than compensated for a negative net letting recorded in July and August. Income from property management increased by 5% in the quarter to 281 million. On the rolling 12 months basis, income from property management increased by 7%, a solid performance given that we were net salaries during the period. This demonstrates that our underlying earnings continue to strengthen, supported by active property management, disciplined cost control, and the impact of completed investments. The market remains selective, but demand is clearly concentrated towards modern efficient premises in attractive central locations. This plays to the strengths of our portfolio and our local operating model. We also continue to create value through our day-to-day business. Investments, new leases, stronger property cash flows contributed to positive unrealized value changes during the quarter. And this is important. The value creation is primarily the result of the work we do in the properties rather than a general change in valuation yields. It demonstrates how good transactions and profitable investments translate into stronger cash flows and higher property values. Our financial position remains stable, giving us the capacity to continue pursuing attractive opportunities while maintaining financial discipline. Overall, the quarter demonstrates the strength of our business model, close customer relationships, generate leasing opportunities, and the leases create a basis for profitable investments and the investments strengthen both cash flows and property values. Rolf will now take you through the operational development, the portfolio, and our financial position in more detail.

Thank you, David. Let's take a closer look at the earnings performance for the current quarter. Rental income was slightly lower than in the previous year, with an economic occupancy rate of 89%. This was primarily due to industrial property in Skellefteå becoming vacant on the 1st of July. Despite this, the occupancy rate remained stable at 90% for the period. Several new leases were signed towards the end of the quarter, and we expect the rental market to gradually improve. There is strong demand for modern, centrally located premises where our portfolio is well positioned. It's important to note that it usually takes 6 to 12 months from lease signing before it generates rental income. Property costs were slightly lower during the quarter, primarily due to reduced expenses for electricity and heating. Energy consumption for the period on a climate-adjusted like-for-like basis decreased by a strong 3.3%. Overall, this resulted in an operating surplus of 479 million, corresponding to a surplus ratio of 74%. Net financial items improved by 18 million compared to Q3 last year, driven by improved refinancing margins and lower cyber rates. Income from property management increased by 5% year-on-year and by 7% over the last 12 months. Realized value changes were slightly negative during the quarter, mainly due to costs related to property packaging, deferred tax discounts, and transaction costs associated with property disposals. We reported positive unrealized value change during the quarter. with the valuation yield decreasing by one basis point compared with the previous quarter. I will return to this shortly. Our well diversified portfolio continues to strengthen the resilience of our top line. On a like for like basis, rental income increased by 1.6% compared with Q3 last year. With 33% of rental income derived from public sector tenants, we have a solid foundation for passing on CPI adjustments. This supports our ability to defend and increase rental levels in connection with both renegotiations and new lettings. In total, 98% of our commercial lease agreements include indexation clauses, of which 95% are linked to CPI. We see clear potential for further rental growth through rental versions, improved occupancy, and by developing modern and efficient office space in prime locations. As the market leader in our core cities, with strong local management and solid cash flow, we hold a competitive advantage compared with many other real estate companies in our markets. Net letting during the quarter was positive at 4 million bringing net letting for the period to 29 million. Net letting was negative in July and August as leasing activity typically slows during the summer while terminations continue to be recorded. The strong positive net letting in September more than offset the summer decline and reflects the continued high level of leasing activity in attractive central locations. Tenant concentration risk remains low. Our ten largest tenants account for 21% of total rental income, with a vault of 4.6 years. And the vault for the total portfolio remains stable at 3.6 years. We continue to see a strong trend where tenants prioritize attractive locations and demonstrate a willingness to pay for modern and efficient premises. Vacancy levels are significantly lower in central urban locations where we have a strong presence. This contributes to the high resilience of our portfolio. At present, several discussions are ongoing with both existing and prospective tenants at good rental levels. The market value of our property portfolio amounted to 32.9 billion. 98% of our properties were externally valued during the second quarter. The inflation assumption for the first year remains at 1% and then increases to 2%. The average valuation yield amounted to 6.07%, representing a decrease of one basis point compared with the previous quarter. Overall, this means that we report positive unrealized value changes of 32 million for the quarter driven by strong leasing activity. We note that our divestments are made at or above book value, supporting our assessment that the reported property values reflect fair value. During the quarter, investments totaled 210 million. primarily related to tenant improvements and development projects. Risk in our project portfolio remains low, as pre-letting is a requirement and most of the rental income is generated from tax finance operation. All ongoing projects are progressing according to plan, both in terms of costs and timelines. Currently, 15,000 square meters are under construction, corresponding to a total investment volume of 390 million, where remaining investments amount to 250 million. In addition, we hold 310,000 square meters of existing and potential building rights, representing significant opportunities for further value creation. The round 50% relates to commercial premises with the remainder allocated to residential properties. Going forward, our focus will be on tenant adaptations and selectively new builds secured by stable tenants and long-term lease agreements. In September, we issued a three-year bond totaling 500 million, while at the same time redeeming 100 million of bonds maturing in October. As a result, our average debt maturity stood at 2.6 years at the end of the period. Over the next 12 months, we will have additional loan maturities excluding commercial papers of 2.7 billion corresponding to 15% of interest-bearing liabilities. And we continue to actively work towards a more prudent maturity profile with longer debt maturities. The average interest rate increased to 3.9% from 3.8% in Q2, driven by higher cyber fixings. Our average fixed interest term was two years. Bank financing is and will continue to be our most important source of funding. Currently, 61% of our outstanding loans are financed through banks. We maintain a very constructive dialogue with all our lending banks who have demonstrated a clear willingness to support our growth ambitions and offer competitive terms. The margin on a three-year bank loan is currently around 120 basis points. With a three-month stiver close to 2%, this implies an all-in interest rate of around 3.2%. Compared with our average property yield, this corresponds to a yield gap of close to 3 percentage points, supporting strong and resilient cash flow generation. For comparison, the marginal three-year bond is currently around 130 basis points. In total, 61% of our financing is bank-based. In addition, we have 2.8 billion in undrawn credit facilities and a secured loan to value ratio of 35%. Completed development projects will further increase our borrowing capacity. taken together, this, combined with our strong banking relationships, makes us feel confident regarding our future refinancing needs. We continue to apply a conservative balance sheet approach, reflecting our strong commitment to financial discipline and effective risk management. Over the past two years, we have reduced financial risk and improved our key financial metrics through divestments and a more cautious approach to larger development projects. The balance sheet has also been reinforced through strategic transactions while cash flow continues to develop positively. Loan-to-value currently amounts to 52% and net debt to EBITDA stands at 9.8 times. We remain selective in our investments, prioritizing projects and acquisitions that strengthens cash flow, enhance returns and support long-term value creation. Our approach to capital allocation and debt management enable us to balance growth opportunities with financial flexibility while preserving a strong balance sheet. A strong cash flow combined with a solid balance sheet provides us with the financial capacity to pursue attractive investment opportunities and acquisitions. I am comfortable with our current financial position and the actions taken to date. Our robust cash flow is sufficient to cover the approved dividend, operating expenses, committed capex, and support continued growth. With that, I will now hand it over to David again.