Fabege AB (publ)

presentation for the third quarter 2024. The first slide you have seen before. It's about the focus we have on Stockholm. We only have 100 properties from Storaplan to Flemmingberg. We have a little bit more than 1 billion square meters and a total value of 79, 58 billion. And as you know, I've seen in the report the valuation this quarter was positive. During the quarter we had the pleasure of officially welcoming during the positive happenings we have and developments. We have welcomed the Royal of Switzerland Opera and the Royal American Theatre to Flemmingberg. We have opened a restaurant in Regulatun in Flemmingberg. We have started the tenants to move in to a quarter in Haganora, the garage in Haganora is finished and so on. The list can be quite long. But with that said, there are also some challenges. Next slide please. You see some of the figures for the third quarter. We have almost the same level of rental incomes even after the divestments we made in June 2023. For the first nine months we have increasing rental incomes and in the life for life you can say the incomes increased about five percent for the first nine months. The surplus ratio is very good for the third quarter. It depends of course on the weather for the months. It's the same level as before. As I said, after seven quarters of negative value changes we had a positive small one but a positive one in the third quarter. We will tell you more about the figures later here. I can also say for the third quarter we saw as a whole lower interest rates. We had a stronger Swedish corona and that of course has been positive for the market. We will start to tell you more about the figures.

Thank you Stefan. Yes, rental income amounted to almost 2.6 billion which is slightly higher than the previous year. A decrease due to property divestments. As you mentioned, Stefan was offset by indexation increases and the taking of possession in previous project properties. Since this summer the Swedish Royal Opera and Theatre have also moved into Flemingsberg. In a life for life portfolio income increased by five percent. Operating costs are in line with the previous year after a strong third quarter with a surplus ratio of 77 percent in total. The surplus ratio for the entire period ended up at 75 percent the same as the previous year. BVB bostads gross profit loss amounted to minus 17 million with two projects completed during the period where the final recognition occurred. Excluding administration costs the profit came at plus three million and total central administration amounted to minus 80 million. With falling market interest rates, interest expenses decreased in the third quarter. Cumulatively net interest expense was in line with the previous year. The average interest rate was 3.16 percent at the end of the quarter. Lower market interest rates are gradually having an impact in our active and our active work with interest rates derivatives have delivered good results. In addition loans are now being refinanced at better and better margins. The resulting associated companies amounted to minus 57 million of which minus 71 million related to the capital contribution to Arena Bolaget and 11 million related to a profit from the JV project in Haganora. And we therefore reported profit from property management of just over one billion, approximately 100 million lower than the previous year. Impairment of development properties relates to a change of value of residential building rights in BVB bostad. And realized changes in value amounted to almost minus 1.2 billion after we reported a positive change in value of 224 million in the third quarter. I will come back to this very soon. We also reported a small realized profit of 4 million which related to a time lag from the transaction with NREP last autumn. As a result of falling market interest rates the surplus value in the derivative portfolio continued to decrease in the value decreased by 444 million during the nine months period. And finally the tax expense which related to the deferred tax only was positive and amounted to 30 million. Next slide please. Yield requirements leveled off and were essentially unchanged during the quarter and even slightly lower for a few of the most central properties. However the average yield requirement remained at 4.54 percent, same as last quarter. In the quarter we have once again independently valued a large proportion of the portfolio, approximately 45 percent. The rest of the year. In Q3 2024 we have written down the property value by approximately 15 percent in total. In Q2 we reported a small lagging impairment of minus 80 million and now in Q3 there has been a turnaround and we have revalued the properties upwards by 224 million. The total change in value the entire period amounted to minus 1.2 billion and we are now reporting a property value of 78.2 billion. In addition there is a property value of the development property portfolio by the Bostad of 0.7 billion. Next slide please. Reported equity was unchanged from the previous quarter and the equity asset rate amounted to 121 crowns per share and the long term NRV amounted to 147 crowns per share. The equity asset rate amounted to 46 percent and the loan to value rate was 43 percent. Both of these keep forming indicators confirm our continued strong balance sheet. The interest coverage rate just strengthened slightly and amounted to 2.5 which is in line with year ends. Please turn to slide financing. The access to and pricing of financing has continued to improve. This applies both to both the capital market and banks even though the biggest improvement has taken place in the market will significantly lower margins. The commercial paper market is continuing to function well. We have lowered the margin in a couple of steps and are now issuing three months commercial papers at 40 basis points compared with 70 basis points at year end. As stated the bond market is functioning well. We have been active through several issues both before the summer and in autumn. Since year end the outstanding bond volume has increased by 2 billion. The margins have continued to improve. Examples are a two-year bond at the margin of 82 basis points and a three-year bond at margins just under 100 basis points. Under all revolving credit facilities and unpaid term loans amounted at the end of the quarter to 8.5 billion of which about 2.4 billion was used for repayment of other loans after the end of the quarter. Overall we continue to have a good preparedness for upcoming financing needs and refinancing. We have facilities in place to cover the upcoming loan maturities. In total we have bond maturities of 2.7 billion in 2025 of which 2.1 billion matures during the second half of the year. We intend to refinance bond maturities with new bonds whereas the bank facilities are continually refinanced through extensions. Of the loan portfolio 54 percent is fixed mainly based on long-term maturities and mostly through straightforward interest rate swaps supplemented by some fixed rate bonds. During the autumn we have replaced maturities with several new long straightforward interest rate swaps with maturities of five to seven years. Approximately 45 percent of the current loan portfolio is matched by fixed rate terms beyond 2025. In addition there are callable interest rate derivatives of 7 billion in total that now looks to set to continue running. Straightforward interest rate derivatives run with a fixed interest rate between 0.11 and 2.18 percent and the callable interest rate derivatives run with an interest rate between 1.82 and 2.5 percent. The average fixed term amounts to 1.8 year and adjusted for the estimated maturity of the callable swaps. The fixed rate term increases to 3.1 years. Our interest rate strategy provides predictability. Fixed rate terms provide protection against rising market interest rates. Now however we believe more falling market interest rates. The levels that we have been able to fix at now both for straightforward interest rate swaps and callable swaps are levels that we think work for us even in the long term. For a moving 12-month period ahead an increase in the market interest rate of one percentage point will generate a higher interest expense of approximately 148 million all else unchanged. And a corresponding reduction of the market interest rate of one percentage will generate a lower interest expense of 91 million. The average interest rate was 3.16 at the end of the quarter and it has subsequently fallen slightly after that. And now back to you Stefan.

Thank you Åsa. So please go to the next slide. A year ago a lot of the questions were about the financial market and that's what Åsa said. You feel that is very stable now. And there was a lot of questions about the transaction market. During the whole period the transactions that has been made in our market has been made on very good levels and are supporting also the valuation we had and with that we have. The last quarter we have seen some transactions within our markets. For example both in Sårna in the city and also in the CBD. But last week there were really one of the largest ones announced. It was at Falasdarm acquired from AMF, the pension fund, the fifth Hörtoys tower in the really middle of the CBD in Sweden. They acquired it for 2.8 billion. It is 16 000 square meters of space area and it it helped also to renovate it in the future. So I think that transaction is equating so many in many ways. But as we said the transaction has been made in the stock market and supported more than well our valuations. If we look at the office market in Stockholm, next slide please. Here you can see that the total market of office space hasn't been growing that much over the last almost 15 years. It has been changed since many of you have been visiting Stockholm and seen also in Brünke based tour for example that we have office space that have been today are the hotels. We have some other transformation has been done but the new building has been mainly but made by us for example in Sona, new modern office space. And if you look at the next slide please. We have some more figures on how the market has been developing. You can see that we know that the rents has been improving to very good levels and are at record levels. We had a number of employees that during the same period been growing but the last waters we have seen it stabilizing or even some small coming down a little bit. The vacancy rates have been stable but have been coming up the last year but as we said very few new space are coming to the market. So what this means that the square meters has been decreasing and I think that also the trend we will continue to see that we are using the office more efficiently. We have seen during a period some companies continue downsize mainly also because of the economy. If you look at the next slide please. We have our largest tenants. We know that both Ica and Thelia has been making more efficient or working with the operations to make it more efficient. And then last week or this week, Friday actually we got a message that the convent are filing for chapter 11. What does this mean for us? We can say we feel very confident that we have the best areas that are for the folk are working that they have in Frottinggatan and Kungskatan. We have discussions with them going on right now. We will inform you more than we have something to tell you. But the convent have a very good operation but has been taking on a little bit too much risk in my view at the same time. So that's also why they're now having those discussions about for chapter 11. But both Kungskatan and Drottgatan space are doing well as we know what we know about. But this we have to follow up of course later on. Next slide. Net letting. That's a disappointing figure. I said that last quarter and I will say it is quarter two. Unfortunately we have a minus even this quarter of about 11 million. We have for the first nine months 85 million. The last quarter is made very few to two small new contract signed. We have also a net effect of the work we're doing now with the Vendor Ground Center which we have to vacate for for example among other things replacement of the facade. In this quarter this is an effect of I think it's about seven million negative. But we have too few new contract signed. Everything takes time. We have a lot of as we said before a lot of good discussions. We have a lot of good showing and interest in the market but everything takes time. Unfortunately also part of the game right now. But we might get some questions about that later on too. Talk about the regular negotiations on the next slide. As we said before many of the contracts we just extend on unchanged terms. We are set away with the levels we have contracts on. The ones we're negotiating so far this year 60 million. We have about two percent negative or decrease a contract with the two percent. But many of the contracts also have been very already been negotiated. So we think most of the contracts are market levels. Some of over still we have a potential in but also some of them as we said before are overrun. The occupancy rates are negatively impacted by the negative net letting we have had for the even some years ago. And we haven't seen the positive effect still yet on the projects coming up. But we still have the goal of coming up to 95 percent but it will take longer time than I hoped. Today we're right a little bit lower than 90 percent. This potential as we said before about 150 million in incomes. We are really focusing on to take that challenge. This next slide you have seen this before. We tried to show you how the rental development will be on the existing lease portfolio for the next four quarters. And it is taking into account both what we know about the people moving out of companies moving out and also the people moving in. So this is the best way. So now I can say Q4 2025 we will have an effect of something. Alpha to Alpha for example at the beginning of especially beginning of 2026. But we will show you that next quarter. Investments coming down. We have some of the large ones in going on. But especially for 2025 we're seeing this investment in the portfolio and for new projects coming down. On the next slide you see the projects Accordet, Åsén, Regulaten, Separaton and Nöten are the ones we are have ongoing right now. Some of them Accordet or the company of the tenants moving in right now. Porson the same. We have handed over the key to some of the first tenants. But it was supposed to be in the beginning of next year. And Separaton it's only maybe more than six months to move in and a year to Saab will move into Nöten. So it's moving and it's moving on. I think also it maybe could be interesting on this to see that when those projects are finalized we will have another six million with the will to generate the cash flow from that's on today not the cash flow positive. Next slide please. We have a residential project in Haganora. It's ongoing. It's in total 288 departments of which 78 rental apartments. We have started during the quarter to sell them. Here we have nine of the first 23 sold. I think it's with today I can say this we can add a couple of more sold. And we have a very good interest for the project. So I think I'm very positive to how this will continue to develop. Awesome. So a little bit about the sustainability and what we're doing there. And the feedback we're getting from both the market and something.

Yeah all right. What's happening in sustainability. I think the biggest news in the quarter was our excellent ranking in this year's GRESP sustainability benchmark. In our property management operations we have taken several steps upwards and now achieved a rating of 95 out of 100 in total. And in our project development we were unchanged with a rating of 98 out of 100. This is a fantastic result which we are very proud of. We can turn to next slide please. In this slide you can see some of our main targets. An important aspect is the use of energy. Faberge has the sector's lowest energy consumption with our 2023 outcome of 71 kilowatt hours per square meter. We have a goal of reducing this further to 70 kilowatt hours per square meter. So far this year however the energy consumption has increased by approximately 4% which mainly related to the climate. A more cold winter and a warm summer that required both more heating and more cooling. Another important aspect is the CO2 target. Projects have the greatest impact and we now set targets and measure CO2 in all our projects including new constructions as well as redevelopments and tenant adaptations. Last year we introduced a circularity target which means that at least 20% of the material used in projects must be reused material and today we are at 15%. Next slide please. This is where our recycling strategy and the recycle hub come in. Here you can see the recycle hub which is a storage area for material from Faberge's properties that can be reused in another project. Through systematics, inventorying, warehousing and an internal marketplace for management of material that can be reused we are leading the way. We have made a lot of progress in our strategic work with reuse and this will be a prerequisite for reaching the long-term CO2 targets. Next slide please. Finally I want to maybe again mention our social engagement. We want to be involved and make a difference for Stockholm in general and more specifically in our areas. It is about creating secure districts and pleasant inviting areas between the buildings in our districts. It's also about being a good corporate citizen. We will not take over the responsibility but we should and can contribute through our engagement and presence. Some good examples that we are that we create summer jobs for young people in our areas. We help fund the Lexhjälpen homework club in Flemingsborg and we are engaged in Talang Akademi which gives people outside the labour market the opportunity of work experience and ultimately jobs. This is a commitment that usually with quite small amount of funds contributes to society while creating pride within the Faberge organisation. And by that back to you Stefan.

So thank you. If you are summarized with the also priorities we have had and have during the 2024. To increase our rates as I said before it's a disappointment that we don't have a positive net netting. I don't think it will be positive this year but said before they would have a goal for 80 million plus 80 million. I hope that will said already last quarter it will not be a they expect us to come up to that. I hope that will be positive. I don't think it will be positive this year. But as I said we have a lot of good discussions. We have a lot of we have very good properties in prime locations but it's a tough market. It's a challenging market with a lot of uncertainty. So if it's a year ago was a lot about the financing market and the transaction market is much more now about the market. And so but we have a good organisation and we have really a focus on this. Everything is about getting net leasing up to good levels. That also means that we're working with the future products. As you know we have a lot of exciting future opportunities, future options with exciting projects both in Rødheda Staden, in Sonar Business Park, even at Sveaplan and in longer term in in Flemingsberg. So we continue to work to see what we can do and we also have some discussions about finding some tenants for those products. So hopefully long term I'm optimistic but short term it has been challenging times. Every day we work with the cost control. I think we have a good culture of how to work with the costs. Also has been talk about the refinancing and the situation there and also how we try to be in the forefront of the ESG in the world. Everything we do in the whole operation. So I think we have a strong fundamental base. We have a strong results for the daily work in the daily operation. The financing situation is positive now but the rental markets give us challenging times right now. I think it will continue doing 2024 with all the uncertainty in the world we have and in for the economy. But I'm looking forward to 2025 with a bit more optimistic view. So with that said please questions.

If you wish to ask a question please dial pound key five on your telephone keypad to enter the queue. If you wish to withdraw your question please dial pound key six on your telephone keypad. The next question comes from Nadir Rahman from UBS. Please go ahead.

Hello good morning can you hear me clearly? Morning.

Yes we can thank you.

Good morning. Thanks for the presentation. My first question relates to vacancy and you mentioned the certainly alpha level tenants and the positive effect on the vacancies. So what quantum change can we expect in the next 18 months from these tenants moving into the properties? And the second question is a follow-up on that is that there have been talks I guess in the press of Eric from potentially exploring options beyond their current site for a larger plot and do you think they're a potential candidate for one of your properties in Solna? Thank you.

It was a little bit unclear but was your first question regarding how the vacancy rate will change?

Correct yes from the alpha level into the properties in the next 18 months. So what quantum change can we expect from that?

Well in the near future we think that the occupancy rate will be actually a little bit reduced because we have Telia leaving some of the area which were announced in the net lettings last quarter. But then we also have projects being finalized and moved into. So for example when Moab moves in a year from now that will have a positive impact on the occupancy rate. But I think it's fair to believe that in the near future the occupancy rate will be reduced somewhat and then hopefully we will be able to increase it again going forward. And I think the second question from you was regarding Ericsson and the potential of them moving from Kista correct?

Correct yes. We have all read the newspapers and we will be more than happy to present some alternatives for that. We have good alternatives both in Arena Staden and so hopefully we can present that be able to present something.

And if I may ask a follow-up on a slightly different topic. So you mentioned in your presentation that the decline in space needed by businesses that you say is driven by the business cycle. But do you think this is a technical effect at this point in time or do you think this is a more fundamental shift in preference that may last for a longer time?

Sorry it's very difficult to hear about that awesome did you? No it seems like someone

else is talking behind you.

Oh sorry so let me.

Okay so please can you repeat the question?

Is this better?

Yeah yes. Much better thanks.

Apologies sorry sorry about that sorry. So I should repeat that. So you're in your report you mentioned a decline in space needed by businesses that's been driven by the business cycle. Do you find that this is a cyclical effect on this occasion or do you think this is a fundamental shift in the markets this time and in preferences that will be longer term?

No I think what we see right now with for example taking a longer time for getting a signing of a contract so that's more the business cycle right now on the economy and the uncertainty in the world. Longer term it's more about how to use the offices. Offices that it's important for most for companies we know but we have a trend to less square meters per employee and that continues. We have smaller desks, we have smaller less maybe area per person but that continues but that also means that the location or the transportation opportunity and so it's much more important. That's also why you're willing to pay a higher rent per square meter for the offices. So I think the trend is that offices we have a lot of discussions how important the office is and also how but right now it's the economy and the the downturn in the economy that are the main reason why it's ever taken the uncertainty of signing a new contract and so.

Well very clear thank you very much and apologies for the unclear line.

No problem.

Any more questions?

Okay. The next question comes from Vensi Elias from Kempen. Please go ahead.

Hi good morning can you hear me? Yes. Okay great thank you for the

presentation and for taking my questions. First one would be on operations of course you mentioned the office market is pretty challenging. Oh sorry one

sec one sec the awesome we heard when you asked the first question of if we could hear you but now it's something wrong with the line so please. Okay

okay you mentioned a challenging office market and then one trend specifically is that occupiers are taking longer. Yeah. But that's not all because rents are still under pressure and occupancy is moving up so what in your view needs to change for operations to turn positive?

I think we the main reason for taking this time for for signing a new contract for making decisions is quite it's it's uncertainty in in the economy and the uncertainty in the in the in the world on the both political and the war scene and so we have so the uncertainty I think it's a little bit the main reason then on top of that we have this how they look to how should their offices look like how much space do we need and maybe not less space but how should we use it where how much desks how much meeting rooms how much you know the whole list of questions but the main reason right now in my view is the business cycle.

Okay thank you and then on valuations of course you reported stable valuations and then in Sweden you typically talk about the yield requirement which you reported 4.5 percent but let's say on the rest of the continent corporates typically look at the NOI yield which if I calculate for you I get to 3.8 percent and first do you have any comments on that and second why should your properties be appraised at such a yield when typically for the NOI yield we see four percent or above?

Good question I think we have to maybe it could could be discussing that for long time long time long term and I think also since we are so transparent with all the figures everyone can make the calculations you like to do the value values in Sweden have the system that has been used for many years and also the that we did you know that our main values are because my wake filler and USEC and they are you also using the same system as they're using in different markets so I think it's I know better answer than that actually too but the transparency I think is very important that you can make so you can always see which at which level sits its value but the transactions in the market is also made is under I think that's also important to say that the transactions we see in the market in our part of the different markets is more than it's the same levels or even better levels than we per square meter or yield or whatever so suppose that we have in the in the in the books so it's so I think that's also important to say.

Okay thank you and then maybe one last question on CommVendum it is one of your tenants could you just quote your total exposure to co-working and then just in general there was also an interview with the CEO of CommVendum and he was implying that CommVendum cannot pass the inflation to their customers so what's your

tenant? It'll be more than three percent of the rental incomes. They had very I think they have very attractive units in the two they have two units one with us it's one at Trottinggatan closer close to where we have the Royal Castle and the government and then at one at Kungsgatan close to Stureplan and I think both of them I what we know we don't know exact figures but we know they are doing okay and they're doing have attractive units and I saw we also saw his comments about the rents and we think that those units are definitely not over rented they are at market rent or even below and in my view his promise that he has been growing a little bit too fast he took on too many units in at the same time so the cash flow has been challenging and especially when this business but I think he has attractive units with us and so we will from out from that have the discussions with him when he now fight for chapter 11

okay very clear thank you very much

I think we have okay the

next question comes from Alexander Toto Manoff from Green Street please go ahead

okay we lose

him we have some questions by email maybe we should go on with those

hello

Alexander Toto Manoff Green Street your line is now unmuted please go ahead

hi sorry about that there were some technical difficulties good morning and thank you for taking my questions two questions from me this morning you reported a 1.2 increase in vacancy driven by Sona about a 2 increase and judging by the commentary that seems to be driven by Avanastaten and Hammerby about a 4 increase could you please comment on the new vacancies are they driven by a couple of large tenants how is the relating discussion going and do you expect where do you see the occupancy landing by the end of the year and one more question with regards to announced M&A yesterday D&B announced is purchasing Carnegie which is your most significant tenant I know it's early innings but given the 2027 expiry on the lease are you already planning for this

we start with a second we saw yesterday that as you said D&B acquired Carnegie and we think that's hopefully positive for they have very good locations for us with us in Stockholm and I hope that it's long term it's even their long term it's really a Carnegie building in Stockholm so and they have been growing with us from for now is it 10 years

more than 10 years more than

10 years I was in 2010 or 2011 I think so there have been the growing in the building and in the rest of that street and that block so hopefully even in the future we will talk about the effect of them what we see today in the vacancies figures is the effect of net leasing figures in last year or the leasing figures last year and the beginning of this year we said earlier that we expect the vacancy rate to come up a little bit maybe during Q4 before it's turning again in 2025 to the more positive side so that's what we have for the short term expectations during 2025 they then have the finalizing of their products and especially second half of 2025 and beginning of 2026 we will have the income from for example rental income coming from Saab for example at the end of it so um yeah but the short term we can be a little bit weaker

Thank you very much

Okay we have no more questions on the telephone conference but I have one additional question from Goldman Sachs on email do you see interest and finance costs going down in the near future and yes we actually we do I also said in in the call that the average interest cost of 3.16 percent by the end of the quarter has been reduced to 3.08 percent by now we don't expect it to be reduced very much further but we expect the average interest rate to stay just above 3 percent going forward we are renegotiating loan agreements with better margins today and the market rates are going down on the other hand we have some old interest rate swaps that were taken five six years ago on really really low levels that are maturing but in all we believe that the interest cost will be around three percent and we will also see improved ICR going forward we also had some other questions but they have already been asked by from the telephone conference about conventum and about the occupancy rate so I think that's it

so thank you very much for listening a lot of questions of today have of course been about even in the swedish presentation about conventum I hope you have got a lot of the the net leasing of minus 11 million is I think it's as we said it's also included eight of them were from the the vennagram projects so it's and we're more optimistic for the future we have future projects and as a whole we have a strong base so hopefully we can look forward with with other strong but yeah okay one more question

thank

you so the next question comes from Paul Gori from CTI please go ahead

hi guys can you hear me okay

yes

perfect um yeah I submitted a question on the on the chat but obviously didn't go through I was looking for a little more detail on on conventum and specifically you know on the two assets um you know have conversations already started I appreciate early in the process but if conversations already started on whether um you know the level of of rent cuts that are expected um or you know whether we're expecting full closure uh those assets that's probably the first question

um as I said of course when he announced last friday we also got contacted uh we have discussions but as I said I think we he has uh good rents good levels of rents you know the units he has with us that the contracts we have with us and I also think that the most it's attractive units so uh that's what I can say today uh I don't think those units are his largest challenge but he has to he has to he has to ask the uh answer those questions himself

yeah sure just checking there were no conversations kind of in in advance of this and you kind of found out at the same time we did um just yeah he has good yes

good good uh with the rent the rents level in our in our units are at definitely at market levels and so it's attractive levels I think for him

yeah and in terms of the the assets themselves if they're not co-working because they need to be repositioned so let's say you know it's it's a full I'm not saying this is what will happen but if there's a full bankruptcy in convent you'll presumably have to reposition the assets again is that right and

I think there is a lot of with those addresses we have at kungsgatan and drotting over a lot of opportunities both for different different options options

oh okay okay and and is one of the options to take over um from convent them so

I can't really comment on that right I can't really comment on that but but I think as I said it there is a different and lot of options for both those that building properties okay

sure and then just on a on a separate topic so just on um you can tell you um you can see from your kind of largest customers uh you know the the change quarter on quarter on the share in the rent roll so can you just confirm and just remind me effectively are those from lease renegotiations and therefore the new level of rent is purely on uh yeah in individual leases where they've negotiated new terms or is it a a move out effect so there's a sort of they can see it

it's a move out effect and I think with telia we were because that was from last quarter and telia was a combination of leaving some space but also fabigie increasing the rent per square meter on the remaining space so that was a combination prolonging

the contract a little

bit and ika they had an option to leave some of the space which they did and both ika and telia also had to pay a penalty for that

okay so they both paid the surrender premiums did you disclose how much they were

no but uh it it's included in the graph with the rental income going forward because the penalty because the penalties will be distributed over the remaining time of the contracts

okay and also what we said when we made made announced the deal with telia it's also that we see in a year and a possibility to to to to have higher rents for the next contracts than we had with telia so we see this is so it's it's so but we are that's for the future

yeah okay okay understood thanks that's everything for me

perfect so once again thank you very much for joining us you're always welcome to give us a call mail us or even hopefully also visit us in stockholm uh so so have a nice day thanks