Fabege AB (publ)

Welcome to the presentation of the year-end report 2024. As usual, after the presentation, there will be opportunities to ask questions. Let's start at slide number two, please. Most of you know that we are focusing on Stockholm. We only have 100 properties and a property value of about 80 million. a little bit more than one million square meters. So I think we go directly into the summary of the year and the next slide of the year report. We have stable property values for the last six months. We have growth in the rental income and then operating surplus and growth also in operating surplus in the identical portfolio. we had continued to have negative net letting even during the q4 we'll tell you more about that later we have as in now another stable financial position and we're looking forward to this year welcome some of the new tenants in the projects that will increase the the rental value with more than 300 million so with that please also give us a little bit more

about the figures yes thank you Stefan I will start with a summary of the fourth quarter in the fourth quarter alone we reported increased rental income and improved net operating income this was despite the fact that operating expenses in the quarter were charged with a provision for conventum of 29 million overall the changes in value were small slightly on the positive side In the valuations, we have taken account of discounts to conventum, which was offset by upward re-evaluations of projects and building rights where the plans have gained legal force. And net nettings were negative in the fourth quarter loans. Stefan will come back to this. Next slide, please. Rental income amounted to just over 3.4 billion, which was slightly higher than the previous year. A decrease due to property divestments last autumn was offset by index increases and the taking of possession in previous product properties. On a like-for-like basis, income increased by 4.5%. Adjusted for the conventum provision, operating expenses were in line with the previous year, and the surplus ratio for the entire period came in at 74%. BE Bostad's gross profit amounted to minus 21 million, as two smaller projects were completed and where the final recognition occurred. Excluding administration, the profit came in at plus 8 million. And central administration amounted to minus 93 million. With falling market interest rates, interest expenses decreased in the second half of the year. In total, net interest was in line with the previous year. Lower market interest rates that are gradually having an impact and our active work with interest derivatives have delivered good results. In addition, loans are now being refinanced at ever better margins. The result in associated companies amounted to minus 91 million, of which minus 102 million related to capital contributions to Arenabolaget, and 11 million, plus 11 million, related to profit from the JV residential project in Haganara. and we therefore reported profits from property management of just over 1.3 billion, approximately 100 million lower than the previous year. Impairment of development properties relates to change of value of residential building rights in the bostad. Unrealized changes in value amounted to minus 1.2 billion after we reported slightly positive value changes in the third and the fourth quarter. I will come back to this very soon. We also reported a small realized profit of 3 million, which related to a time lag from the transaction with NREP last autumn. The valuation of the derivatives portfolio follows long-term interest rates, which varied during the year. Overall, during the year, the surplus value in the derivatives portfolio decreased by 143 million. And finally, the tax expense which related to the deferred tax only amounted to minus 124 million. Slide six, please. In the fourth quarter, we have once again independently valued a large proportion of the portfolio, approximately 55%. The rest of the portfolio has been valued internally. Yield requirements leveled off and have been essentially unchanged since the second quarter. The average yield remained at 4.54%. As I mentioned earlier, the changes in value were slightly positive in the third and the fourth quarters. Total change in value for the entire period amounted to minus 1.2 billion, and we are now reporting a property value of 78.9 billion. In addition, there is the property value of the development property portfolio of 800 million. Next slide, please. Reported equity increased during the quarter by one crown to 122 per share, and the long-term EFRA NRV amounted to 148 crowns per share. The equity asset ratio was unchanged at 46%, and the loan-to-value ratio was also unchanged at 43%. Both of these key performance indicators confirm our continued strong balance sheet. The interest coverage ratio amounted to 2.5, which is in line with the previous year. And now, next slide, please. The access to and pricing of financing is still very good, This applies to both the capital markets and banks, even though the biggest improvement has taken place in the capital market with much lower margins. But banks are also now following. The commercial paper market is continuing to function well. We have reduced the margin in a couple of steps and are now issuing three months commercial paper at a margin of 40 basis points compared to 70 basis points at the previous year end. As stated, the bond market is also functioning well. We have been active through several issues since last spring. During the year, the outstanding bond volume increased by just over 2 billion. Falling market interest rates and lower margins meant that at year end, we reported an average interest rate of just under 3%. Undrawn revolving credit facilities totaled 6 billion at the end of the quarter. The sale of the property Ynglingen means that we will receive almost 1 billion in early March, which will be used to repay debt. Overall, we continue to have 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 2.1 billion during the second half of 2025. We intend to refinance our bond maturities with new bonds, whereas the bank's facilities are continually refinanced through extensions. Of course, what was also pleasing during the quarter was Moody's confirmation of our BAA2 rating and that the outlook was changed from negative to stable. Slide nine, please. Of the loan portfolio, 52% is fixed, mainly based on long-term maturities and mostly through straightforward interest rate swaps, supplemented by some fixed rate bonds. In addition, there are callable interest rate derivatives totaling 7 billion, which now look set to continue running. Straightforward interest rate derivatives run with a fixed interest rate between 0.11 and 2.80%. callable interest rate derivatives run with an interest rate between 1.82 and 2.5 percent the average fixed rate term amounts to 1.8 years adjusted for the estimated maturity of the callable swaps it increases to 2.6 years our interest rate strategy provides predictability Fixed rate terms provide protection against rising market interest rates. However, we now believe more in falling or stable market interest rates. The levels that we have managed to fix at both for straightforward interest rate swaps and for the callable swaps are levels that we are comfortable with. 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 147 million, all else unchanged. A corresponding reduction in the market interest rate by one percentage point results in a reduced interest expense of 89 million. And the average interest rate was 2.98 at the end. Next slide, please. We achieved many of our goals regarding sustainability for the year. Perhaps what we are most proud of is that we achieved our energy target, reducing energy consumption to an average of 70 kilowatt hours per square meter. A target that felt much too tough after the cold winter and the somewhat hot summer, but which we still managed to achieve during strong efforts in the operations during the second half of the year. And just before Christmas, we also got the confirmation from Nasdaq, which confirmed our status as a green share according to Nasdaq Green equity designation with a second party opinion from S&P. And now back to you, Stefan.

Thank you. Thank you also. Next slide, we see some of the transactions that have been made in the final market. You can also tell that the financial market has been healthy during the end of the year, and better and better over the year. And also, I think the transaction market is relatively healthy. Good properties are finding good buys at good prices. And we can see some of the transactions that have been done here at the list. The latest one was score of 30 in Hagastaden, also called FELIX. We don't know exactly the price right now, but Hømlegården acquired it, and I think it has been prices that were more than well confirmed of valuations. We also saw, and we have discussed some of them, they are the ones on the list earlier. If you look at the next slide, we have earlier said that we have signed the agreement of Ynglingen at Östermalm, and the deal will be completed on March 4. And the cash, as also said, the cash payment, the cash will be used to reduce our debt. The office market, if the transaction market and the financial market has been relatively healthy over the last year, the office market and the rental market has been more challenging. Very little new at the end of the year, still a slow market, I think, and we see vacancies continue to grow a little bit in the whole of Stockholm. Mainly, for example, in Altenstien and some other suburbs, But I think that the CBD is still a relatively strong market. And we see also the trend is to continue to move to better locations. All the locations continue to be very important. On the next slide, there have been very few new products announced in the market. So we can't see that the total office space will increase. over the next years, rather the opposite, that there will be some small decreases. So the demand has been challenging. We expect it during 2025 to be better. But as we said, the quality of the office, the quality of the in location will be very important but or the supply we have the vacancies but there will be very little new supply so the next slide is as you know we have large financial strong customers what we maybe should comment on this slide is a reconstruction phase of a discussion with conventum which is not entirely completed As it looks today, the units in our two properties will probably remain, and we have good discussions with them about that. But as also mentioned, we've made a provision already for the rental losses for the last year of 29 million. The reconstruction is expected to be finalized in April, and before that we can't comment that much, but we have good discussions to renew a prolonged agreement with them. Next slide, please. The disappointment during the year was, of course, the net letting. It was a minus of 108 million, and it was also negative in all four quarters. It has been a tough market. We see a little bit more optimistic for 2025. I think that period of the decision making in the companies will hopefully be more stronger since we also hope we can see a better economy just to quantify. We have a goal even for this year of 80 million and as you can see here in the chart, the net lending has fluctuated in recent years And that's mainly because of the large projects we have had. In 2023, for example, we had announced the Saab agreement. It was 160 million. And the years before was Anton Aval. And also in the past, we have had the project portfolio continue to develop. That is an important part of our business. Business, of course. Next slide. Occupancy rates. It's today at 88%, in my view, too low. Our long-term goal is coming back up to 95%. When they rent the work, over the next years, we'll have total focus on that. And we, so even for 2025, of course, our main focus will be the vacancies and to the rental work. and also to ensure that we can meet the change in needs of our existing customers. And of course, on top of that, we will continue to work on realizing the great potential we have in our big building right portfolio. And also, of course, we continue to develop our new opportunities in our areas. So as I said before, the net rental target for this year, 2025, is at least 80 million Swedish. Next slide, please. On this slide, I like especially to look at the fourth quarter, where we have the SAAB, both SAAB and Alfa-Alaban moved in, and the rental incomes will start to increase when the project portfolio will be more finalized. And we will come back. There are more and more over the next quarters. Next slide, you see the ongoing projects we have. In Haga Noram, in Sårlandstrand, the SAAR project. In Flemingsberg, Alfa Loar, we move into summer. And the textile project in Hammarby Sjöstad. We have signed some new contracts, especially in Påsen. and the occupancy rate in the project portfolio are now 87 percent. Next slide. Björn Bostad has the ongoing project in Haga Norra. It's in total almost 300 apartments. In the first phase, 23 apartments, of which today 18 are sold. They will start to move in in April. In the second phase, 50 apartments, of which 40 are sold. And they will start to move in at the end of the year. And also during the autumn this year, the rental apartments will be completed for occupancy. And in the next phases, we have already started to sell some apartments. apartments, and we will start the sale process during the spring. So, to summarize, we believe in Stockholm. It has been some challenging years with the pandemic, with the geopolitical situation, but Stockholm has a lot of strength. It's a unicorn factory. both in tech and in biotech. We are the capital of Sweden, and this can be long why we think Stockholm will have a very strong position for the future. On the next slide, we also believe in offices. We believe that the offices will be important for all companies. We believe that people are coming back to offices, but the offices will continue to develop. The office today doesn't look like the office some years ago, 10 years ago, 20 years ago. And our position to be number one in Solna, to be number one in Hammarby Worldstar, our strong position in CBD will be a long-term they'll also have a lot of opportunities for us. We are focused today, as you see on the next slide, to grow sustainable, of course, but without risking our strong financial position. The growth can be achieved by that we're completing existing projects. As we saw before, it will be a little bit more than 300 million over the next year. that we will work with increasing the occupancy rate, and the long-term goal, the target is 95%. We will continue to invest in new products, and it could be acquisitions, and also these investments that are creating value for us. And we should, of course, be cost-efficient. The main target is the growth of the management profit, and that it should be the best return in the portfolio of the listed companies. Part of that, to be successful with that, you have on the next slide, there are building rights of more than half a million commercial square meters. of which about 40% are legal binding. And residential also a bit more than half a million, almost 30% are legal binding. Opportunities in the near term, which you see on the next slide, is in Arreda and Staden, for example, for our Cairo. We will start the development with the ground during this year. But we would like to have a signed contract. We would not start a big project without signed contracts. In Hagenora, we have the next residential phase with another 130 apartments. Probably could be started in 2026, but we would like to be selling more in the first phases first. On the next slide, we also have Tegertarassan at Kungsholmen, which got legal binding. After 14 years, we got the decision some months ago. And the same in Sona Business Park, which is both residential and commercial opportunities. So we will hope to come back with some positive news during this year and next year. And on top of this, what we already have said, also the dividend this year are suggested by the board to two kronor per share and paid 40 times a year. And today I also announced that I will retire at the end of this year. I will be 66 during this spring. And so I think the timing is right for me to leave it over and also to have a more flexible daily life. But right now and for next year, it will be full focus on doing the business here and creating value. So to summarize, before we go over to the questions, As we said, in many ways this year we have increasing incomes in the identical portfolio. Even the interest rates are going right direction. Also the value changes are, during the second half, more positive. and but this is the net renting that we are now working very very hard to be able to decrease the vacancy rates and also to be able to use the opportunity to to to uh potential in our building right portfolio so uh questions please

If you wish to ask a question, please dial 5 on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial 6 on your telephone keypad. The next question comes from Nadia Rahman from UBS AG. Please go ahead.

Yes. Hello, good afternoon. Thank you for the presentation. And congratulations on your career at Fabgo so far, given the announcement of your retirement. The question I had was on the indexation and the contribution of inflation to your rents, because you obviously reported 4.5% on the like for like. So the first question was on how much of that was an inflation driven contribution. And the second question was on what second part to that first question. was on the inflation that was reported this morning, the FASH estimate, the CPIF, that came in well ahead of consensus figures, and how you think that may affect your business plans or operations and leasing going forward.

Sorry, many questions. I think we'll try one at a time. Indexation in 2024 was roughly 6%. So the net of, I mean the 4.5% is a net of indexation and companies moving in and moving out. And because of the negative net letting in the property management portfolio, there's been a negative influence from that.

And then your next question was?

It was on the topic of the... So the second part of that question was regarding the CPIF beat today, the inflation in Sweden coming well ahead of consensus. I think it was around 2% reported versus around 1.7% predicted by the market. So how could that affect your leasing momentum and decisions from tenants going forward? Could that have an effect on net lettings?

I think it's a little bit too early to say. I think... I haven't had time since we had the report today to discuss the figures, but I saw it was 2.2. And I know probably the food is an important part of that, food prices. I think it's more important right now for the economy in Sweden to also look at when will the lower interest rates get effect in the economy. And we expect that to happen during the spring. So I don't really know if these inflation figures will have a big impact. The interest rate was up a little bit today. I think it was six, seven basis points, but it's too early to say. So what we don't like to happen is if it will be even higher and moving upwards. But I think we are still at a level around two. So that's the most important.

Got it. Okay, that's very clear. Thank you. And the second question was, I think on the recent news of SBAB recently downsizing their lease, I think they moved to another property within your portfolio. Is this a trend of downsizing you're seeing across other tenants? And could this therefore be a more structural shift in preferences for office space and therefore have a long-term effect on your vacancy in trying to reach that 5% target?

I think it's SBAB, there have been a 10 of us for, I think it's 10 years or something. And we have been discussing with them how to develop their business more. And they are, as you said, signing a contract with us for a lease in the inner city. It's almost the same number of square meters, a little bit smaller, but it's higher total cost. So it's a positive of 20 million Swedish in the net letting for us. I think we can see, Bo, that I think we're, as for SBAB, it's more that they like to be in the inner city. We see in some other discussion, of course, that everyone are looking at how to use the office. The office is very important, but also how should it look like? Do they need more meeting rooms? Do they need more or less space? And I think, so we see both. Both the companies that need less or some of the companies need more when they do the changes. Yes, that's very clear.

Thanks for the answers.

The next question comes from Jonathan Carnator from GS. Please go ahead.

A few questions on my end, please. The first one, slide 18, the rental development chart. I just wanted to check something, please. So you've got four buildings that are being delivered, I think, in 2025. I think you already said Saab and Alfa Laval would only kick in Q4 2025, so outside of this chart. So I just wanted to check, because I think there's still slated in to be delivered before that? That's the first question on that. But also, what about the two other buildings? Are they already included in your light blue bars or are they also going to be delivered at the end of 2025, please?

Which was the last one you mentioned?

So, you've got four buildings that are being delivered in 2025, right? I just want to understand if any of these buildings are included in the chart in the light blue bars?

Yes, they are to the extent that the tenants have moved in and from the day that they are starting to pay rent, they are included.

So the question is that line from the 847 is pretty flat, right? So what I'm just trying to assess is how much indexation do you have in there and also do you have a number of departures that compensate the fact that these buildings are going to be delivered, right? Yes.

Yeah, it's a mix. So everything that we know by the end of the year 2024 of contracts being terminated during these four coming quarters and contracts that are being taken into possession from tenants during these four quarters is included. So it's a mix of companies moving out and companies moving in. And the index effect of 2025 is also included. It was only 1.57%, but that's also included.

Okay, so that's included. If we take, so there's essentially two buildings that are being delivered in Q1. What about the Flemingsberg, the Separaton one? Because that one is 95% lead.

Yes, that well with it q4 because it's in Partly in the second quarter, so they will be In the building in the third and the fourth quarter Okay, and sob The one in in the property called Nathan they will move in in November November, so that's q4.

Yeah, all right very careful and Obviously, you're talking about potentially new projects. Just keen to understand your discussion with Tenant on that. Do you see any traction? Obviously, you said you wanted to secure a prelate, which makes sense. Are you seeing good traction on these projects at this stage?

We have discussions. We see interest. But since it's a very big project, we also expect the discussions to take some time. But we see interest, and I think especially for the one in Arenastaden, for Cairo, which will be the next step of developing Arenastaden, I'm optimistic about it. It's a huge project. In Haganora, it's more residential, and so that will be... We also have another commercial building right in Haganora. So there are some... but a very large project, so I expect them to take some time, but we have interest, yes.

Okay, that's good. I mean, obviously, you know, maybe one final question. A number of economists expect the economy in Sweden to pick up in 2025. I mean, what are your thoughts there? I mean, is it something that you're seeing already, or is it delayed, or, you know, what's the story on the ground with... I think it's... On the ground, it's a general...

It's too early in the beginning of the year. Most of the economists don't expect it to happen during the first quarter, but second quarter and especially second half of the year, many expect it to pick up and that also the cut in the interest rates will have impact or effect.

All right, very clear. Thank you very much.

The next question comes from Venci Elieff from Kempen. Please go ahead.

Hi, good morning. Thank you for taking my questions. First one on the net letting target for 2025. I just wanted to ask you to elaborate a bit more why you're confident that you can reach this target because you also just said that the economy will most likely pick up only in H2. And then second one on the debt ratio, I see that you're currently at 14 while your policy is at 13. And I guess the most likely way to get there is through disposal. So is this, would you like to get there in the near term or do you not mind being above the target?

If we start with the second one, we already announced the sale of a property called Ynglingen. That's close to one billion, which will be received in the beginning of March. So that will make a difference.

And when talking about the net letting, we have said at least 80 million this year. And it's a mix of from the vacancies and from hopefully some products but I think that since what we can see in the market it's a little bit it's a better hopefully a better market and also that we can get so it normally it should be doable to get to 80 million. But it's up to show it, up to grab, or up for us to show it, yes.

Okay, maybe if you just allow me to ask on leverage again, so even if I include the disposal, then I still get to a number before 13, so yeah, could you just highlight if you're still considering disposals on the near term or would it be just more on an opportunistic basis?

That's more of an internal target to not be above 13. So the key metrics that we are more looking close into are the LTV level and also the ICR So I mean getting to you know even if this metric is a little bit above 13 that's okay for us.

You can also say the reason that we're above 13 was that some years ago we did some buybacks and unfortunately too early but we used the mandate at that time so we have almost four percent of the shares bought back and that's main reason Correct me if I'm wrong also, but that's the main reason why we are above 13. So we don't feel under stress for that.

Okay, clear. Thank you very much.

The next question comes from Paul May from Barclays. Please go ahead.

Hi there. Thanks for the presentation. Just a couple of quick ones from me. Can you explain how the impact of the Riksbank rate cuts affects your debt costs? Because there's 150 bits of rate cuts that came through. You're about 40%, I think, variable debt exposed. But your cost of debt's only come down 15 basis points. Just wondered.

what the flow through is and how that should work moving forward i've got a second question after that well if i just check what page there is a sensitivity analysis on page 14 in the report so We have roughly 52% of the portfolio fixed with long-term interest rate swaps and fixed loans. And then another 7 billion is sort of fixed with the cancelable swaps. And they are being prolonged by the banks at the moment, and they are also expected to be prolonged. So if we take that into account, if the market interest rate goes down one percentage. That will have an impact of roughly 90 million positive on the financial net. So you can see the figures and vice versa. If the market interest rate increases by one percentage, that will have a negative impact of 146 million in the financial net.

Have those sensitivities materially changed over the last year?

Yes, they have.

What's the reason for the changes? Sorry, just so I can understand.

It depends, of course, on the market interest rate and where it starts from and also the number of derivatives in the portfolio.

Some of the swaps have been maturing. Some swaps that we took at very low levels in 2019 matured in August, September 24, I think.

And that, of course, is... Sorry, apologies. And just to check, these sensitivities are if your weighted average cost of debt changes, or are these sensitivities if the underlying Riksbank rate changes?

If the market or the cyber changes. So one percentage point of cyber change has this impact.

Okay. Cool. Thank you. And are you expecting any sort of a delayed reaction, effectively, if we look to the sensitivities in the past, and obviously we've had a 1.5% move, it didn't all happen at the beginning of the year, you'd expect some of that to flow through, or is that reflected already in your average cost of debt as of the year end?

Of course, there's always some delay in a couple of months before some of them are reset. But it's more a question of months, I would say.

Yeah, normally, I mean, the base in our loan portfolio is based on three months fiber. So fiber would normally be fixed for a period of three months and then reset for the next period of three months.

Okay, cool. Thank you. And the second question, separate question. In terms of the outlook for 25, and I think you mentioned it's going to be a tough start to the year, but you expect it to pick up as we get into the second half and appreciate the view from economists in terms of the pickup. But is there a concern or a risk or have you considered that the increase in your occupancy rate over the last, basically, two years is a result of the structural changes of office use and you'll just structurally have a higher vacancy rate moving forward? Or is that not something that you consider to be an issue?

Of course we are discussing that. We have to discuss it of course. You can see first of all the vacancies rates in Stockholm are moving up and also that we know that there are structural changes in how to use offices. But with that said, we also see that there are very little new office space coming in to the market. We see that also that the location of the offices or the building is even more important than it was five years ago. So it's a mix. I think that we can be, we see that in our areas, our locations, there will be I feel confident that we will still have a good location with good offices, good spaces. But it has been a tough market, and that mainly has been, I think, it has been impacted a lot by the economy and the uncertainty of all the economy and geopolitics. And also how to use the office. But we see much more that the companies now are more willing to say that, okay, the office are very, very important for us and we need to invest in it.

Cool. Thank you very much. And just to say, enjoy your retirement and we'll miss your candid responses to questions. Thank you very much.

Thank you very much. We have time to meet before that.

Hopefully.

The next question comes from Alexander Totomanov from Green Street. Please go ahead.

Good afternoon. Thank you for taking my questions. It's three questions for me, so I think one at a time is probably best. First one, on the SBAB bank news that came out yesterday, if I'm not mistaken, the new lease is for the same property in the inner city where two government agencies are departing at the second half of this year. I assume that the net letting figure quoted in the press release yesterday, which was about 21 million SEC, pertains to the SBAB bank currently in Sono Business Park. Could you please confirm that?

Yes.

Do you have a comparable net letting figure for the SBAB bank versus the two government agencies which are departing?

We took them in Q1 last year, and I think it was about 30 million. Negative, the two authorities.

Okay. And in terms of the increasing rental income for SBB Bank versus the government agencies, would you be able to comment?

It's an increasing rate, yes. I think in percentage, it's quite a substantial higher rent level. Of course, we also have to do some investments, but we are very happy that SBAEB will continue to be our tenant at all, so that we had the right location for them in the inner city. And then we see some, of course, we have to work with property in Solna Business Park, but I think we can have some, maybe, hopefully, some good ideas there.

And in terms of the investment you mentioned, I can see that I think that's about a six-month void or so. Would you have a figure in mind for the investment, either per square meter or the overall amount?

No, not right here.

OK. Then second question, on the 29 million SEK provision for Convendum, would you expect to take an additional about 30 million over this quarter, first quarter of 25? If I understand FabGIS exposure to the Convendum restructuring process correctly, that should be limited to about 60 million SEK, I think in total, that's about six months rent. And you've taken about half of that.

This was a one-off in 2024, before the reconstruction of Convendum started. So the impact in 2025 will be, there will be more information once we are, you know, when the reconstruction has come through. What we have said is that Convendum, as we have agreed with Convendum, is that they will stay in the two locations they are renting from Fabergé. They will have some discounts during the first three years.

um so it will not be a loss but there will be some discounts on on the rent and we also we also discussing some that we can could take back some to if we find under tenants so so it would be more flexible but that's positive for us so so but but they also also said they were across right there has to be uh we we have an agreement with them but but also the whole

It's depending on the full reconstruction.

Okay. And my third question on the 5% negative releasing spread, I think on 86 million SEC worth of rent row. If I'm not mistaken, given the figure reported in the third quarter, that would imply that about 25 million SEC in the fourth quarter was renegotiated at about 30% down. Could you please give us an indication on what sub-market in Stockholm this was relating to and whether it was actually into a single tenant or whether it's multiple tenants?

It was a couple of contracts and it's not the, how to say it, so I don't sound too, it's not, it was not, it was some few contracts on its relatively small volume and some maybe you can say special situations. It's not really reflecting the total portfolio. Most of the contracts are prolonged, as you can see, volume-wise.

Were those tenants primarily concentrated in a single market, let's say a business park, or were they spread throughout your portfolio?

It was a mix. Small acquirers, it was a mix.

Okay, thank you very much.

The next question comes from Paul Gorry from CTI. Please go ahead.

Hi, all. Alex actually just asked a couple of my questions, but just maybe one quick follow-up on the conventum. So we know that it's going to be a lower rent, but I'm guessing you can't comment on where it will be but given that's known already is that in the rental income bridge that you provide so the the quarter by quarter that Jonathan Cowanator was referencing is is the lower conventment already in there or no it's not it's not in there no it's not in there okay okay so in April so in Q2 we'll know where the new sort of level is yeah hopefully hopefully we will know it when we present the q1 report but we don't we can't say for sure yes okay okay and and just uh just on the accounting so the 29 million that was recognized in this quarter um again there's no way that that can be kind of unwound if I don't know if the agreement was reached with a conventum is more positive than you expected. Is there a way that you can see a positive impact when that gets unwound, or are we saying that that's a sort of definite write-off and we should just take that as kind of... We don't... We can always hope, but I can't see how it could happen that it should be more positive.

We can't expect to get this 29 back, I would say. I shouldn't say that, maybe Håkan Jeppsson was listening, but now I think we have to be realistic.

Okay, that's clear. Thank you.

As a reminder, if you wish to ask a question, please dial pound key 5 on your telephone keypad.

If there are no further questions, thank you very much for listening to us and joining us this afternoon. You're always, as you know, welcome to give Åsa, Peter or myself a call. And we're really looking forward to see you here in Stockholm or in some other meetings in the future. in the near future. So thank you very much.