Hufvudstaden AB (publ)

Då får jag hälsa hjärtligt välkomna till dagens presentation av huvudstadens årsboksslut 2024. Jag heter Albin Sandberg och representerar Kepler Cheveux, en av de analytikerfirman som följer huvudstaden löpande. We will be listening to Anders Nygren, CEO, and Åsa Roslund. But apart from that, the new CEO of NK, Hannes Hasselroth, is also here today. We expect that the presentation will take about 35-40 minutes. And there will be a chance for everyone to ask questions, both to those who are here physically and to those who are listening. Just send them in and we will answer them as well. and our goal is to be done here in about ten out of five. But with that said, the floor is yours Anders.

Yes, warm welcome here, you who are with digital as well. Today we are at Cecil Coworking. Cecil Coworking I started up in the middle of the pandemic and it was of course a bit exhausting in the beginning, but it has been of great interest since then. Therefore it is also fun to say that in our upcoming project down in Gothenburg, Kvarteret Johanna, we will open another facility. Then we will have two Cecil facilities and we hope that there will be as much interest there. I will start by summarizing the year. I want to start by saying that 2024 is a year that has been marked by worries in our environment. We have had geopolitical tensions, there has been war and we have also had a low economy. In this situation, I think it is important that we are fast-paced, that we adapt our business after the changes, or the behavioral changes that we see on the market. And I definitely think that we are doing that. What is also positive during this year is that inflation has dropped and is close to the national bank's goal. We have also seen successive drops in interest rates and this has also made the concern for the property industry have decreased significantly. I would say that the demand for nice offices in central locations has been stable during the year, despite the fact that the vacancies have actually increased in most parts of the markets, both in Stockholm and Gothenburg. And this is something that I would say is typical when we see that the vacancies go up a little bit and you start to see maybe a little, little pressure on the rents and we have also seen that these, so to speak, the process of renting has definitely taken longer. The retail trade has continued to be very challenging. The traders have had rising costs in general and in the same period one has met a market where households actually keep the money and do not have such a strong power consumption. And that has really affected the entire retail trade and we see retail trade index that is very weak figures. I think we have had a good progress in our development projects and I will come back to that a little bit during the presentation. Sustainability is still in focus and during this year we have worked hard to prepare for next year's CSRD reporting. I think we are doing very well, but it is a pretty big job to do. We also feel that the tenants set higher requirements within the sustainability area. In parallel with that, the tenants are still more interested in sustainability issues and recycling, for example, as many are talking about now. So there will be harsher requirements, but on the other hand, the interest increases for this. I would also say that it is very happy that for the seventh year in a row, we reach a first place among large companies in this year's satisfaction customer measurement for offices. This is very important for us and our long-term profitability and from a sustainability perspective. Let's look at some figures. The net turnover for the property management increased by 4% in relation to previous years. The property management turnover and results increased by 6%. And the decline for the renegotiations was negative by 2%. But then you should remember that this is calculated after an index increase of 6.5%. Here the office contributes positively and the stores give a somewhat reduced contribution. The rental holiday rate decreased to 7.1% in relation to the previous year and if we remove our projects we end up at 5%. For the fourth quarter, the net turnover increased by 4% compared to the same period last year. The gross profit of the property management increased by 8%. The unrealized value change was 0.5 billion SEK and this is mainly due to reduced direct rejection requirements. The last quarter was very eventful in the library city. We feel that the retail business is getting a little more progressive, you are a little more positive. We made a number of important extensions of the strong brands in the library city and we got some new strong brands that we will announce later. The interest for Johanna, our largest development project, is still large. We signed two new lease agreements. The first with Hemsö Fastigheter, a stable tenant, and then we signed yet another agreement that is not public yet, but also a very strong tenant. We also saw that the Christmas trade strengthened from last year and we see that in all of our markets. The result of the year will be 365 million SEK. This is a clear improvement compared to the previous year. This is mainly due to reduced negative unrealized value changes. The project volume also decreased a little, we have more projects going on now. The market value was set at 47.1 billion SEK, which gives a long-term substance value of 185 SEK. The board proposes an increased allocation of 10 ores to 280 SEK per share. I will now hand over the floor to Åsa.

And I thought we would look at different key figures. We start by looking at what Anders just concluded with, the allocation for the year. Proposes an increase in the allocation to 2.80, it is an increase of 4%. One of our financial goals is that we will distribute at least 50% of the results from the ongoing business and that we will have a positive allocation growth over time. And we see that in the curve here that we have in recent years. If we look at the net loan rate, we are still good. 21.4% is our net loan rate and we see that the average for the rest is around 45%. The interest rate has changed since the interest rates have gone up, but we have an interest rate of 4.5% and the rest is around 3%. We have a goal that the solidity should be over 40% over time and we have been stable around 60% and this year we ended up at 59% and we see that the rest that we compare with is just over 40%. If we look further at our financing, we have a total of 9.8 billion SEK in the end of 2024. The majority is in bonds, 84%, and then we have bank loans and a small amount of certificates as well. In addition to these loans that we have in withdrawn loans, we have unused loan agreements of 5.5 billion. We see here that the unused loan agreements cover our losses on the capital market for the next two years. So there we keep a low risk profile. Since 2021, we have had the goal to move more and more to green financing to promote the green transition in society. In the previous year, we came up with an updated framework for green financing, and that means that we can take up both green bonds, certificates and bank loans under the same framework. We have also increased the proportion of green financing and as you can see here we are at 5.7 billion in bonds and 1.5 billion in bank loans. So in total it is 73% of our loan number is green. And with that I thought I would go over and talk a little more about our sustainability work within the company. We work from a sustainability plan that has three main areas. Minimizing, future-safe and collaboration. In Minimera, we are actively working to reduce our climate pressure in general. The main thing we are working with is to energy-efficientify our properties. This is something we are doing continuously and in many different ways. Vi bygger med långsiktigt perspektiv, det vill säga att vi vill se till att våra fastigheter finns kvar i 100 år till, även om vi har ägt dem i 100 år hittills. Det gör också att de investeringar vi gör vill vi ska kunna räcka under en väldigt lång period. Oavsett om vi byter hyresgäster så ska grundinvesteringen vara kvar. Vi ska inte behöva göra stora ombyggnationer för varje hyresgäst. This year we have had a clear example of recycling where we have renovated and rebuilt for the tenant Danske Bank in the property next door. There we have jointly had a high ambition when it comes to the sustainability perspective. And here we see examples of the work that has been done. We have worked a lot to reuse furnishings, window frames, plasterboards, foils, doors, glass panels. Either that it remains or that it is moved into the premises. We have had our own painting workshop inside the premises to paint up what will be renovated and moved. In the same way, the tenant has also actively worked with recycling and reused their furniture. by cleaning, repainting and cleaning. So in total, it is recycling that permeates all of these new premises. The second important part is future-safe. I mentioned earlier that we have a 100-year perspective, both forward and backward, and that is something that we have worked for long before we started talking about sustainability. Long-term sustainability has been important to us. One part of that is that we environment-certify our properties, and we continue to do so. Vi har också jobbat mycket med att klimatanpassa fastigheterna, vara förberedda för hundraårsregn eller andra saker som kan inträffa och gjort analyser utav alla våra fastigheter för att bygga om, göra ordning dem så att vi klarar av sådana dramatiska saker som kan inträffa. Samarbete var det sista området och ska vi lyckas med en hållbar omställning så måste vi samarbeta över gränser mellan fastighetsbolag, mellan andra aktörer och alla som egentligen vistas på de ytorna där vi finns. For our part, we have green rental agreements with our rental guests, where we jointly agree on how we should work with sustainability factors in the respective locations. We also work a lot actively with neighbors, municipalities and other stakeholders. One example is Purple Flag, which is an organization we have worked with in Gothenburg, both in Nordstan and Fredstan. They have focused a lot on security and that type of sustainability in these areas and that has made a change where Nordstan is now experienced as and is much safer than it was a few years ago. If we look at some of our sustainability goals, these are some examples, where we work for climate neutral management of our properties, where we have reduced our emissions by 10% during the year, and we have a challenge left that here we are dependent partly on the deliveries we have from external parts of remote heating and remote cooling, and a number of other factors that we work with. The use of energy has been our goal. We set our sustainability goals for 2020 with starting points from 2019. Our ambition was to reduce the use of energy per square meter by 16% by 2025. And we have already reached 17%. I also mentioned climate-certified properties. We have so far certified 84% of And we are actively working with our reconstruction projects, and I have already talked about that, just around recycling, which has been a big factor this year.

Thank you, Åsa. As an stock analyst, I noticed that the credit side has almost run ahead of the stock side when it comes to capital availability. I wondered if you could look back a little bit. Do you agree with my view and how it might affect the capital's financing in the future?

I absolutely agree and we see very clearly during 2024 that the credit market was there again. It has been very economical during a few years, but we with several have made a big turnaround during 2024 and are very interested. We also see that the margins pressed down and is an advantage for us, while also the general interest rate goes down. So we have passed the top of the high interest rates and are looking forward to what it will look like in the future. But it feels positive.

Thank you, Åsa. Let's welcome Anders, who will tell us a bit more about the ongoing project and so on. A bit of the market, but first I have to ask Anders. The capital in normal order is a very strong balance sheet. There is perhaps a little more market optimism. We will see the capital being a little more aggressive on the business side.

Yes, I usually get that question. But I should say that we have set up a strategy to develop our own stock. And that strategy is stuck and that is what we have as the highest priority. On the other hand, if a really nice property would come up that we really would like to have, then we really have the opportunity to add. We are very careful with what we choose and I see a great potential in our existing stock and in our existing businesses where we can improve ourselves and where we are not completely satisfied today. Let's jump into the real estate market. I would say that 2024 was still a year when the real estate market stabilized. We saw the inflation drop, the interest rates also dropped. For many real estate companies, the costs may have gone up, but knowing that the interest rate is going down makes you feel a little safer. As Åsa said, I would say there has been good access to capital here, at least if you have had up-to-date contacts. We also saw that several transactions took place in the central parts of Stockholm at the end of the year and I would also say that the direct withdrawal requirements have been stable during the year. If we look at transactions in Sweden over time, we see that we have a small increase towards 2023, but if you look in relation to historical values and that this is nominal, then it is still a fairly careful volume of transactions. Here we can see the yield development in a selection of European cities. You can see here that there has been a stable or somewhat rising yield on some markets. But if we look at Stockholm, it has actually dropped a bit during the year. The capital's market value landed at 47.1 billion and we had an average yield of 4.1 and you can see a little bit on the form here hopefully that it continues to turn a little upwards here in the future. Vi utvecklar våra fastigheter och miljön utanför våra fastigheter. Vi är med i många samarbeten med andra fastighetsägare och tillsammans med staden. Vårt mål är att kontinuerligt utveckla levande marknadsplatser och stärka faktiskt citykärnorna i både Stockholm och Göteborg. Det är någonting som jag tycker vi har lyckats ganska bra med i våra större projekt. As Åsa mentioned, we are thinking long-term. The capital city is also known for its high quality, both in terms of material choice and that we also choose robust solutions that last over time. Currently, we have a project portfolio of about 2 billion SEK and these projects are carried out according to previously developed plans. Åsa showed an interior picture here from Danske Bank, a fantastic property in a fantastic location. And here we have carried out a larger renovation and this is a reconstruction that is taking place in connection with the fact that the rental house is actually still there. This is something we are very good at managing, but the rental companies are still very satisfied. This renovation will be completed under Q3 2025. We are also very happy that we have received a new detailed plan after I do not want to mention how many years we have worked with this project, but I myself started the first investigations in 2008. But that is how it can be if you are in the capital of Stockholm and want to develop in sensitive areas and where we live with the interests of the state. This includes a construction of two floors in a very good location near the central station and here we can get about 3000 square meters. We are currently working on system transactions and some volume studies. Probably start of building 26-27. And then we come to the quarter Johanna. This is the capital's largest development project. It is time to finish building the newly built storm volumes. We have a small roof that we are going to replace and we are going to increase the height of the roof, but the big work is actually done. And now we have under 2025 we are going to finish building the base house and then the first tenants come under 26. I think we have had a lot of good rental work. We have created a unique product on the market. I think we have had very good rentals. We have had strong rental guests. Here we have Vinge, we have Ernst & Young EY, Hemsö Sensor. We have had a service concept with Nordic Wellness. Cecil will have a unit here and we will have a really nice restaurant. And this is something that is important for the office customers that you have these service functions. That it should be simple in everyday life and it should be a nice environment when you leave your office. And then it is so that everyone wants to have good neighbors and this is something that gets infected. To the left we see this volume where the purple-pink position goes up. It is the old burned tomtom that has finally been filled with building volume again. To the right we see an inward window environment. Here we have made larger windows throughout the quarter. We get very bright and nice office space. We move to Nordstan. There have been large infrastructure projects in Gothenburg for many years and here we have, together with other property owners in Nordstan, managed to get an entrance from Västlänken right into Nordstan's shopping center. This new detailed plan includes a construction volume of around 5000 square meters. But in stage 1, we will only build to the volume we see here, which is about 700 square meters. But the most important thing in this project is that we get a new flow into Nordstan. We move to the office. Here we see vacancies in Stockholm. What you can note is that in almost all share markets we see rising vacancies. Despite this, the office rents have been stable. We may feel that there is a small pressure in the underinterval at the rental levels. But for the best offices, you are willing to pay a lot. If we move to Gothenburg, there are remarkable high vacancies here. This is due to the large supply that has been added to the market over several years. That is, you add more square meters than what the take-up is in the market. What you see in Gothenburg, and the difference to Stockholm is that it is a growing office market. Here the number of office employees is growing in a good way. However, in Stockholm the number of office employees has stopped. So there it is still a positive market in Gothenburg. If we then look at the real rental development on the main city's marketplaces, we see that we are still at a historically high level. Even if we see that the curve looks like this because we have had a strong inflation. But I think the trend is very clear that companies are looking for really good office locations. And that's because you want to recruit and attract the absolute best employees. And for them, it is also important how it looks outside the office. That it is good, so to speak, supply of shops, restaurants, service, culture. And I would like to state that the flow goes from the outer parts into the city. And we have our properties, I think, in the right place. Let's move to the store. If we look at the real rental development over time, you can see that it has dropped for many years. There has been a big change in retail, with e-commerce, there are sustainability trends. But also these curves are a little bit that you can actually see a tendency and that they are about to fall out. And I know for example if we take the business area Stockholm, then we have a store vacancy that is under 1%. And here we have more of a goal that we will rent out all square meters. So that is an assignment I have given to the organization. I would also say that the brand is incredibly precise with where you are going to establish yourself. You want to be in the right environment in the right context. And if you are in premium and luxury, then I would say that we have incredibly strong offers, both via NK, Nordstan, Fredstan and a little more mid-market we came to Nordstan as well. Here we see Lulelemon's shop in Vildmannen 7. We filled the last two areas in Vildmannen with Lulelemon and Fanbrun. So now all office areas, all shop areas are displayed at good levels. Also very fun, Swedish super strong brand Totem. They expand and have taken more space and build a flagship on the library street. And down in Gothenburg, we see Hemtex, which is located on Götgatan, in the middle of Nordstan, in a really good position. They choose to open their largest store in Sweden on this marketplace. Also very important. Let's jump over to NK. NK is working on a change. I have to say that I myself have been working a lot with NK over the past year. As you know, we have also recruited a new CEO and you will get to know Hannes a little later here. But during the time we have been waiting for Hannes, our real estate manager in Stockholm, Henrik Lilja, has been assigned. and he has done a very good job during this period. If we look at revenue and net revenue, in the blue stacks revenue is provided, that is, what we sell for in the warehouse. The yellow line provides the rent the capital gets in. We have had a positive development in sales, which is fundamentally very important. We have had an increase of 9% which is significantly stronger than the detail trade index. However, we have a negative trend on the rental revenues and this is something that we are not at all satisfied with. The reason for this is that we have had 5 years of bad market for retail. We have had a pandemic, war and high cost pressure. This means that the traders have had a weak sales while their costs have gone up. This has caused a lot of pressure. There have been many contests. We have not been affected by it, but on the market in general, it has been a very exhausting period. And in this situation, in order to keep NK as an attractive workplace, we have chosen to give a lot of discounts for business reasons. And that of course affects the rental income. If we look at NK. And now we are not talking about NK Retail, but about NK. So we make a budget of 223 million SEK in the property administration. And that is also a little negative trend. And this is something we are not at all happy with. But we have very good conditions to turn this around. We have two incredibly nice warehouses, both Stockholm and Gothenburg. I would say that they are in the absolutely right place. I would not want to change the location of this property to somewhere else in all of Sweden. And these properties are of really high quality. The reason for NK and for us to be attractive is that we have a really good supply of brands, of stores, of entrepreneurs. And during the year we have, for example, a new initiative. We have started an own production of a little more basic goods that we will reach a small customer group with. This will be very exciting to see how we can develop this over time. But it can always be from scented candles to teabags, socks, there are also some underpants of great quality. We have also had several really sharp launches, for example Kaja, I know you saw the queues that were last year, but now they have established two permanent stores, one in Stockholm and one in Gothenburg. We also had a launch of Skims, the underwear brand, incredibly successful. But we also have a large focus on the household experience. This is about giving our customers a first-class service in a wonderful environment. We must be able to take care of our customers and create memorable experiences. And what we are known for, partly we have customer evenings when thousands of people come, but it is also this Christmas sign that many actually connect with their childhood. You come here to see this, so we have an incredible heritage to take care of too. But NK is also supposed to be a meeting place. Here you should not only shop, you should be able to meet and interact. Here we have worked and improved the quality of the food. During this year, Tommy Milumäke and P. Lise have taken over four restaurants in NK Stockholm. They have an incredibly high quality and good food. We also work with the digital development. We develop nk.se and e-commerce. We increased sales by 64% compared to the previous year. At the end of the year we had 25,000 products on e-commerce. We also work to strengthen customer loyalty via our key program and only this year we have 80,000 new members. We will also have a digital presence, we will be where the customers are regardless of time and place. Here we see the latest renovation in Gothenburg on Enkoman. It has become incredibly beautiful. Immediately after the renovation, we have seen that sales have gone up. Then we come to NK Retail and sometimes it is actually that you mix up NK and NK Retail. NK Retail is a full-fledged subsidiary of NK and their mission is to drive inspiring multi-brand departments with first-class service in the categories jewelry, cosmetics and fashion. As I said earlier, the range can vary from year to year. We sometimes use Enco Retail to get new brands in and start drifting. So it can change from year to year and this year it was about 30% of the warehouse area. And I would say that our long-term strategy with long-term or long-term strategies with inputs here from independent entrepreneurs and brands is still there. Enco Retail had a revenue of 916 million SEK, which is a rise of 16%, which is very good. However, the result does not depend on it. We went back 49 million SEK last year and now it is 53 million SEK. The reason for this is related to what I have described before. High cost to the household, the construction has not started. We have also sold very good cosmetics, which has significantly lower gross marginals than what Mode has. And our customers have not gone and bought the expensive winter jacket or suit, which means that you get a larger part of the assortment that has to be removed. And then you also get significantly lower gross margin. And this is something we are working very hard with that we will turn this negative trend. If we look at NK for next year, we are working on simplifying the business. We are changing the drift models, reducing our cost and prioritizing what is really important. We follow the previous strategy and that is that we should have more luxury street plans and that is because this is something that our customers want. On the other hand, we should go a little more commercial. We will continue to have this peak of unique products, we will work with different price classes, but overall it will be more commercial, it will increase our sales. We will also continue to develop digitally and this is because we will increase sales, we will be better and more inspiring and we will improve customer experience. But I would say the most important of all here in the short term is actually to rent out our vacant premises. And here we have several interesting dialogues going on, but this is a job that just needs to be done. Vi ska bygga en kö av intressenter till varuhusen. Sammantaget ska det här leda till ökad lönsamhet för NK och NK Retail. Welcome up, Hannes.

Thank you.

Thank you, Anders. Now you are really warm in your clothes after nine days. Nine days, yes. It's perfect to start like this, isn't it? We've met quite a few times before. Yes, absolutely. So it actually feels like you've been here longer. Yes, a little bit. Can you tell us a little bit about your background?

My name is Hannes and I am 44 years old. I live in Gamle skede here in Stockholm with two children and my wife. I come from Finnspång in Östergötland from the beginning. I studied chemistry at Linköping University. But I mainly have 25 years with retail in my luggage, so I have worked with both physical and digital trade for 25 years. I started at H&M and then I was in London for 7 years and there I also got to work on the big luxury houses. I was at Liberty and got to lead parts of Liberty for a long time with also experience of Harrods. Then I moved home, 12 years here in Sweden, but I have worked with The brand is on an international level, among other things Peak Performance. And last but not least, I came from a Finnish noted company that shares Kronans Apotek, where I was also CEO during a period.

That's me. You say that you have been at the warehouse.

What do you take with you from there? That there are no paths to a first class service world class. Everything has to be perfect. Everything from an inspiring environment. to relevant offers and news and assortment, to a personal service where you see the customer and try to say yes to the customer. And that's also the case from London. The competition is so incredibly hard and the demand for renewal is also very high. You have to be at the forefront all the time to be relevant. And I also see something here that we must dare a little more and renew ourselves in this change work as you mentioned Anders.

There is a lot of talk about e-commerce and physical trade and so on. What is your view on that?

As I said, I have experience from both and I think that you really have to look at your business from the customer's perspective. Otherwise it's hard to create value in the long run, so I don't believe in physical trade against digital trade in trade, but I believe in unified trade. We must simply find profitable and sustainable ways of working to meet the customer where they are. And you who are listening and sitting here in the room, you are already moving seamlessly between the channels all the time. There are probably a lot of people who have looked at their phones during this presentation. I think it's important that we have to change and dare to change. NK's legacy for me is very much about both tradition and renewal. That's the legacy that I see. And there we may have to dare to renew ourselves and work in a different way to meet the customer that it is.

Yes, NK, we usually say internally, it touches. Many have views on NK. But what is your relationship, do you have any special memories?

It has been noticed during these nine days that it really touches, I have to say that. It has been fantastic, what warmth and commitment there is for NK. For me, as you mentioned Christmas, it's the same for me. I was here with the children on Christmas Eve so I'm trying to indoctrinate them to this as well. But I would say that the last few days have been very much out in our household. Both in Stockholm and Gothenburg. To listen to our dealers, to meet our customers. And last Wednesday I was in Ljusgården, our very nice entrance to Hamngatan in Stockholm. And then I met Thord. There was an older gentleman in the entrance there and took in the atmosphere in Ljusgården. And I stood up and talked a little with him. And then I understood that he was there with his wife, he was 70 years old, he had been to an ABBA museum here in Stockholm and had taken over the zoo for us. They would eat lunch with us and then he would buy something nice for himself and then go to the theater in the evening. And it was a data point, a further confirmation of something that I already knew, that we have a unique opportunity, that we are a destination and can be a very relevant marketplace even in the future. But then we may have to manage our tradition, but also dare to renew. We simply have to become more relevant in all our channels. And I think that's a key to creating value for our customers, for our dealers, but also for our owners.

Thank you very much. Thank you Anders. Yes, but it feels great that you are here and I think we have really exciting years ahead of us. Hop! Then we will look forward a little bit here. Yes, 2024 was a challenging year, I have said earlier. I think we will have a lot of uncertainty in our environment in the future as well. But basically I have to say that I feel pretty positive before 2025. And my assessment is that we will see a gradual improvement of the conjuncture here. But I think that the effect of this may come first during the second half of the year. The basis of our business is that we create attractive markets where companies and people enjoy, feel safe and can be developed. Johanna is our largest development project and under 2026 the first tenants will move in and the quarter will be filled again with life and movement. This project will also strengthen the marketplace Fredstan, but it will also contribute to the strengthened cash flow. In addition to our projects, we will also invest in rent. We will reduce our vacancies and we will continue to take care of our customers and facilitate for them in their everyday life. We will be a first-hand choice on the market. In NK we are in a stage of change and we have the goal to increase profitability for NK in large and especially for NK Retail. But I still want to claim that we have good opportunities to turn the negative trend. Sustainability is becoming more and more important and I would say that it is becoming more and more a natural part of the ongoing business. We have a focus here on reducing climate impact, partly from the operation of our properties, but also from our rebuildings. I would say that Hufvudstaden owns some of Stockholm's and Gothenburg's finest properties. They are located in attractive city locations near good communications. I think it is clear that today we see a demand in the market for the type of properties and premises that Hufvudstaden offers. And that together with our strong financial position gives us good opportunities to develop the business further. And that we can successively increase the result in the ongoing business and thereby also be able to give a good share growth over time. In this picture we can see the roof restaurant on Johanna. We have been working on this project since 2008. It is a big change in the urban environment in Gothenburg. And what feels so good is that we create a product that will be attractive on the market for a long time. And I really look forward to, in one and a half years, to sit on that roof restaurant together with my colleagues, enjoy a wonderful lunch and look out over Gothenburg's roof landscape. Thank you.

Tack så mycket för det Anders och välkomnar Åsa upp på scenen också. Som sagt ni som tittar på webben skicka gärna in lite frågor om ni har. Jag tänkte jag vill börja med en fråga Anders och bli tillbaka på den jag ställde tidigare. Om ni har en riktigt intressant produkt och går in och köper den. Det var ju en ganska stor affär här i Stockholm CBD för inte så länge sedan. Det var Wallenstam som la beslag på en av högtorgsskaparna. Was it not interesting for you, or was it the price and what would you say about your own rating?

It was Wallenstam who bought this property, so they were the strongest.

So you would have been interested in another prize?

I don't want to comment.

But it's not too peripheral, is it? No, it's a good situation. That's good, then we know that too. I was thinking, in due time, is there anyone here in the audience who has a question? Please ask questions, but I would like you to keep it to one question per question, if possible. I have a question.

You have a big vacancy that comes up in the second quarter when the financial inspection moves. Can you comment a little bit on the starting rental level and the expectations of renting out those areas and to what rental level it is there now on Kungsgatan in Stockholm?

Finansinspektionen har ju suttit där i många, många år. Jag skulle säga att det här är en fastighet som är byggd för en hyresgäst så att det krävs att man går in och gör ett projekt i fastigheten. Finansinspektionen har suttit på en låg hyra och här ser vi en ganska stor potential att höja den utgående hyresnivån. Vi har ett antal intressenter som vi jobbar med men det finns ingenting skrivet.

Rutger Smith heter jag. En detaljfråga bara på NK Retail. Du anger ett underskott på 53 miljoner inklusive koncerninterna hyror. Stämmer. Vågar du tala om hur stora hyreskostnader som NK Retail har?

You can see it if you look at the cement review in the report, then the company is eliminated. It is stated, but in general we say that the rental levels that we have for EncoRetail are market-based rentals.

So it's the business we're going to screw on there to get the profitability up?

Hi, my name is Teddy Jansson. I wonder, when you talk about buying new properties, the discount that is so much on the stock, why not buy back the stock instead?

It is always an alternative, especially with regard to the discount that exists today, but there is no decision on that today.

I don't think I can say that any questions have come in yet. I would also like to pass on and ask one last question, Anders. We are here in Cecil and You talked about having a queue here. We saw that, back to our friend Wallenstam, who actually wrote down the content in Convendum to zero. And you will open Coworking in Gothenburg. What is it that you think makes a certain form of Coworking work and nothing else?

I think that in Cecil we have found a good concept. This is more of a mix between a hotel and an office. It is not a big facility, it is quite private and we can give a very good service to those who are sitting here. I think that is the key. It will not be a small shop office. That is what many people want. So it will be very exciting and I think that in Gothenburg it is also a very large property and we notice this when we rent out premises. This is very important for the tenants to get this flexibility. So it is a seller's argument that it actually exists and that you can offer it.

Jag tackar så jättemycket för de här dragningarna. Ni får säkert tillgängliga senare för frågor för de som vill, men i egenskap av tid nu och så vidare så väljer vi att avsluta här. Tack för alla er som har följt på webben också. Tack.

Tack så mycket. Tack för att ni kom idag.

Vi påminner om att om det är någon som vill stanna kvar och få en rundvandring på Cecil så kommer vi att börja här utanför om någon är ute bara.