John Mattson Fastighetsföretagen AB (publ)

Welcome here today. My name is Per Nilsson and I am the CEO of Ematson. I look forward to presenting our report for the period from January to June 2024, together with our CFO Ebba Pilokart. We have shown strong results for the period, while our work with long-term value creation and sustainability is moving forward. It is with great joy that our focus on strengthening the existing cash flow continues to give results. Förvaltningsresultaten för perioden ökar med hela 51 procent jämfört med samma period föregående år. Efter att sedan det tredje kvartalet 2022 upplevt en lång period av sjunkande fastighetsvärden ser vi nu en vändning. Våra fastighetsvärden stiger åter där värdeförändring för kvartalet uppgår till 1,1 procent. I början av april avyttrade vi en bostadsfastighet i Halvik i Stockholm till ett Selling is a part of our strategy to continuously evaluate our stock and make selective decisions in order to optimize the use of capital and at the same time strengthen the company's conditions to handle higher interest rates. Our work with the development of our project portfolio goes forward. After we together at Lidingö city have reformed the E-port project at Lidingö, we now have political unity and projects from all parties in the municipality. A new plan has been signed with the goal of having a finished detailed plan for 2026. Jag är mycket glad och stolt över det partnerskap med Stockholm XEGI som vi ingick efter periodens utgång och som vi skickade ut pressmeddelanden om igår. Genom partnerskapet bidrar vi till att ställa om energisystemet i Stockholm till netto nollutsläpp, samtidigt som gör massan får tillgång till kostnadseffektiv och hållbar kärven världens värld.

The partnership with Stockholm XEG has a positive impact both in terms of sustainability and financially.

Instead of only investing in our own sustainable energy sources, we have chosen to enter a partnership with Stockholm XEG, where we invest in the transformation of their greenhouse gas production to net zero emissions of greenhouse gases. First, it happens through Stockholm XEG phasing out fossil fuels, and in the end, to reach net zero emissions. The partnership means that Jörn Mattssons climate impact for affected properties will decrease by about 10% per year, with the goal that the properties will have net zero emissions from warming up to the year 2033. Jörn Mattsson assumed a 2022 science-based climate goal, where the emissions of greenhouse gases from Scope 1 and 2 will decrease by 40% to 2030 compared to the 2021 level. Through the partnership, we ensure that we meet our science-based climate goals, while at the same time helping to restore the energy system in Stockholm to net zero emissions. The partnership with Stockholm Exegi also affects Jo Mattsson financially. Initially, about a third of our properties are subject to an investment of 57 million kronor. Through the investment, we get access to remote heating at a reduced price. In the framework of the partnership, we have the opportunity to connect about two thirds of our properties to a total investment of about 120 million kronor. The fact that we moved out of the housing property during the quarter means that the number of apartments with 27 apartments is now 4,324.

The available area is now 2,000 square meters and is now 345,000 square meters. Our development project will be large according to plan and the project portfolio will continue to be 680 apartments.

Only one project har förändrat bedömd tidpunkt för när detaljplanen förväntas vinna laga kraft. Det är projektpinsetten i Örnsberg där färdigställandet av detaljplanen bedöms ske under 2026 istället för under 2025 som vi kommunicerade föregående kvartal. Det är mycket glädjande att vi efter omtag tillsammans med Lidingö stad och projektet Ekporten på Lidingö nu har samsyn om projektets utformning där vi under andra kvartalet We have signed a new plan agreement with the common ambition to be done with the detailed plan by 2026. As mentioned earlier, we do not plan to start new production projects by early 2026. This is for the purpose of investing our existing stock through primary energy investments and value-generating upgrades. In these investments, we also see higher deductions. In the future, we will continue to drive our projects in the early stages to build building rights when the market conditions are again favorable to start new projects. We will also work to increase the number of building rights towards our goal of long-term production of 250 apartments each year. What you see in the picture is the project Ekporten in Lidingö, which we recently signed a plan agreement for. Projektet utgörs av de tre punkthusen med gul fasad längst fram i bilden. Projektet ligger på mark som Jermattson äger i stadsdelen Larsberg, där Jermattson redan är stor fastighetsägare. Läget för projektet är mycket attraktivt med närhet till vatten, natur och service. På platsen finns idag ett äldre garage som ska rivas och nya garageplatser tillskapas där tre punkthus plateras ovanpå. Den aktuella tomten för projektet är brant och påverkar utformningen av huskropparna som byggs i sutterägg. En viktig funktion med projektet är att koppla upp Larsberg med närliggande bostadsområdet Alendrum och samtidigt ha en tydligt värdefull natur i området. Genom projektet förvandlar vi även en idag undanskyld plats i utkanten av Larsberg som kan upplevas otryggt i en trygg plats där fler vistas och rör sig. Den nya bebyggelsen är på cirka 11 000 kvadratmeter BTA, där drygt 7 000 kvadratmeter utgörs av bostäder och övrig The majority of the apartments are made up mainly of parking. We estimate that about 90 apartments will be added, where the majority will be made up of larger apartments, i.e. three-room apartments upwards. The previous goal with Lidingö stad was that the half-plan will be able to generate power by 2026.

We are very happy that our focus on strengthening the existing cash flow continues to give results.

The rate of surplus for the period rose to 70 percent despite a cold and snowy beginning of the year. During the second quarter, the rate of surplus rose to 76 percent, which is four percentages higher than the same period last year. Income has continued to develop positively, where the rent negotiations for 2024 resulted in an average rent adjustment of 5.1 percent from January 1 for our housing properties in Lidingö and Sollentuna. The registered housing stock was adjusted up to 5.2% on March 2. We continue to strengthen the revenue of our commercial stock, where the net value for the period goes up to SEK 7 million. We have increased the pace in the work to energy-efficientify our properties and are beginning to see positive effects from several initiatives. Energy consumption is now decreasing successively and has been about 5% lower in the quarter than the corresponding period. the previous year. The results for the period increase by 51% compared to the same period the previous year. This is mainly explained by continued efficiency of our properties and reduced interest rates as a result of sales and new emissions as well as the possibility of amortization of laws. As a result of an increase in the number of shares, the sales result per share decreases by 25% compared to the same period the previous year. With regard to the development of substance value, we can note that we have seen an increase in activity on the transaction market, especially from the buyer's side. The reduction of the Riksbank's interest rate and improved access to financing will likely create conditions for further recovery of the transaction market in the future. During the second quarter, we reduced our housing property in Avik, Stockholm, to an underlying property value of 93 million kronor, which is about 5% of the recorded value. Att vi fortsätter att sälja fastigheter i linje med det överbokfört värde befäster värdet på vår fastighetsportfölj. Vi bedömer att avkastningskraven har stabiliserats under kvartalet, där avkastningskraven i Jomatsons fastighetsvärderingar är oförändrade i jämförelse med föregående kvartal. Värdeförändringen i Jomatsons fastighetsbestånd uppgick under perioden till 1,1 procent och det här som ett resultat av ökad Thank you very much. Let's look at the results for the period.

The result shows an increased administrative result and a positive result for the period. And we start with the revenues. In the lower blue column, you can see the results for the period from January to June 2024. The rental revenues for the period go up to 318.8 million, which is 9.3 million higher than the previous year's corresponding period. And the difference is mainly related to the rental fees for housing, where now all areas are clear. Even increased commercial exposure contributes positively to the income. And we have an economic exposure rate of 97.1%. This is a level with the previous quarter. But if you look at the commercial state isolated, the economic exposure rate is now 95.3%. It's a good climb up from 93.9% at the beginning of Q1. The economic rate of housing is isolated by 98.5%. This is compared to 98.7% at the start of Q1. Preparations for the development project in Rotebro and Rotsunda contribute to this reduction. Let's move on to the cost side. As Per mentioned, we have continued to focus on strengthening existing cash flows. Trots ett kallt och snörikt Q1 2024 som ledde till att fastighetskostnaderna ökade med 3,1 miljoner ligger vi nu i halvåret på en nivå som är 1,8 miljoner lägre än föregående år samma period. Driftmetoden för perioden januari till juni uppgår till 224,6 miljoner vilket motsvarar en ökning på 11,2 miljoner jämfört med föregående år kvartal två. The central administration costs go up to 25.5 million, which can be compared to 23.8 in the same period last year. It is an increase of 1.7 million, mainly due to increased costs from internal staff and system development. The financial method for the period is minus 111.3 million, which has improved by 20 million compared to Q2 last year, which is a drop in a lower debt. which, in turn, is an effect of completed sales and the new emissions that were carried out at the end of 2023. Below the table, you can see the annual revenue, which has increased from 3.1 percent in the previous year to 3.2 percent at Q2's start this year. The revenue result for Q2 was 87.8 million kronor compared to 58.3 percent Q2 in the previous year, which is an increase of 51 percent. For the first half of the year, the interest rate rose to 1.8 times and the surplus rate to 70.4%. It is worth mentioning here that the interest rate in Q2 isolated is 2.1 times and it is actually the first time since 2022 that it has fallen over 2 times in a quarter. Even the surplus of 76.2% in the isolated quarter is the company's high figure for a single quarter, which is pleasing. We move on to the company's real estate value and the change in the quarter. At the beginning of the year, we had a real estate value of 13,568 million kronor, or 13.6 billion. This value during the year has been affected by investments, mainly in new buildings, energy projects and upgrades, 85.5 million. We have had a deviation from a property in Alvik to a underlying property value of 93 million kronor, which should be just under 5% higher than the recorded value in Q4 2023. The property has been removed. on April 12, 2024, and in the first quarter we increased to a property value equivalent to the underlying property value in the business. The realized value changes from declared property are at minus 1.4 million, which comes from withdrawals from latent tax and refunds of previously agreed tax and transaction costs. We have unrealized value changes, which go up to a total of plus 73.9 million, Under Q1, we adjusted the repayment requirement with eight points. This corresponds to a negative value change of minus 325 million, or minus 2.4%. In Q2, the repayment requirement has not changed, so the number from Q1 remains the same. The change in the negative repayment requirement under Q1 has been counteracted by increased operating costs, mainly due to rent increases for homes and commercial premises, as well as the effectiveness of the property costs. This has had a positive effect on the development of the whole plus 399 million, or plus 2.9 percent for the period. These changes have resulted in a property value of 13.6 billion kronor at the end of the quarter, 13,634 million kronor. Then we will look at the balance calculation. In the blue column on the right, we can see the balance for June 30, 2024. As we just saw in the previous picture, the estimated property value for June 30 was 13,634 million kronor. On the debt side, the estimated interest rate goes up to 7,075.5 million kronor, approximately 7.1 billion kronor. It is a decrease compared to Q2 last year of 1.4 billion SEK. Amortization of loans has been done with liquid from real estate sales that have been deducted during the past 12-month period, as well as from the capital expense from the previous year's emission that was carried out during quarter 4, 2023. And the cash has also increased. which means that the net debt will decrease by 1.6 billion kronor from 8.3 billion kronor in Q2 last year to 6.7 billion kronor in Q2 this year. Below the table, we see the reward rate at the beginning of Q2, which goes up to 49.2 percent, which can be compared with 57.2 percent at the beginning of Q2 2023 and 49.8 percent if we compare with Q4 2023. In addition to real estate sales and amortization, this quarter, even with the fact that the real estate value has increased somewhat, has contributed to the improvement of the loan rate. The long-term substantial value has risen to SEK 89.04 per share, where the number of shares last year increased from SEK 37.9 million to SEK 75.8 million at the beginning of the fourth quarter of 2023, following the previous emission. Compared to the previous quarter, the long-term substantial value for shares has increased by 3%. The financial picture. At the beginning of January this year, Jan Mattsson was still active with interest savings, where we took advantage of the fact that the long-term interest rate fell back sharply at the end of 2023. And at the end of quarter two, when the long-term interest rate fell back again, an interest savings was also made for the company for a lower level. During the quarter, amortizations of 127.2 million kronor were made, And in connection with the end placement of the building credit for the Gengas in Örby, a new loan was made with 59.1 million kronor. Capital gain, the credit gain time decreases somewhat from 2.8 to 2.7 years. And interest gain, 76% of our loans have an interest gain time that is longer than one year. And our average interest gain time increases to 2.7 years. Detta ger en god beredskap om tiden det tar för räntenivåerna att falla tillbaka blir mer utdragen. Den egentliga räntan sjönk från 3,38 som den var den 31 mars till 3,20% per 30 juni. Anledningen till att den sjönk är att vi slutplacerade byggnadskreditivet som hade en högre räntenivå än fastighetslånet har. Yes. And then we will look at the income capacity. The table illustrates the current income capacity on a 12-month basis for June 30, 2024, with respect to the entire property estate per balance day. And I will say that this should not be compared to a prognosis. The housing income based on contracted income per balance day goes up to 634.4 million. It is an increase of 6.7 million kronor per quarter. The value has therefore increased with the annual rents for all areas. The prices are decreasing with 0.8 million kronor, which is a result of continued progress in our commercial state. The interest rate has increased compared to the previous quarter in income from 458.1 million kronor to 462.0 million kronor. Stiftungrådskostnaderna här baserade på rullande tolvmånaders utfall. Kostnaden för fastighetsadministrationen, centraladministrationen, baseras på bedömda kostnader på tolvmånaders basis. Administrationskostnaderna motsvarar utfallet för de senaste tolvmånaderna, men där justeringar har gjorts för fastighetsadministrationen i de sålda fastigheterna, samt de engångskostnader vi hade i centraladministrationen om 3 miljoner kronor under 2023. The financial net is calculated based on the average net cost per balance day, in addition to the amount of money. This does not constitute a forecast for future interest rates. An average interest on liquid funds has not been calculated. The financial net was minus 228.2 million, which is an improvement from minus 244.6 in the previous quarter. Thank you very much.

When inflation and interest rose sharply in 2022, low-cost assets were negatively affected, and investors turned to high-cost properties. A lot is said now that apartments in attractive locations will remain strong. We want to highlight three areas that will speak for apartments in attractive locations in the future. These areas are rental development for apartments, rental potential in our stock,

ombildning på potentialen i vårt bestand.

Kommersiella fastigheter som vanligtvis har hyresavtal som årligen justeras genom konsumentprisindex var vinnare jämfört med bostäder när inflationen var hög. Historiskt har dock bostäder med några års eftersläpning fått kompensation för inflationen i de årliga hyresförhandlingarna. In the picture, you can see a comparison between the historical decline for KPI and the annual rent adjustment for housing in Stockholm. According to the Konjunkturinstitut's prognosis, KPI is expected to fall back sharply in order to rise again and stabilize around 2%. If the historical connection between inflation and housing taxes continues to apply, the annual rent adjustments will continue to be high for housing and will be 3.9% on average over the next three years. There will be more and more signs of rising vacancies in hotels around Sweden, where the willingness to pay for hotels is low. Here, hotels differ in attractive locations in Stockholm, where J. Mattsson's estate exists. The willingness to pay for J. Mattsson's hotels significantly exceeds our average rents, which gives stable revenues with low risk for vacancies. In the picture, you can see a summary of the willingness to pay for successive apartments and newly produced apartments in the geographies where Jomatsson owns apartments. The willingness to pay for successive apartments is represented by the dark blue bar and newly produced apartments by the scraped bar. Our average rental levels for successive apartments are represented by the green line and our newly produced apartments by the red line. The big difference in the willingness to pay for our homes and our rents gives us great rental potential, with the possibility of increasing rental revenues through apartment upgrades where rents can typically increase by about 50%. Even for newly produced apartments, the demand and willingness to pay is high in attractive apartments in Stockholm. This creates good feasibility in JomApsons project portfolio despite the norm which is currently being used to carry out new housing projects. The willingness to pay varies greatly for different sub-markets around the country. On the right in the graph, in what we call the reference area, you can see an example of willingness to pay for succession apartments and newly produced apartments in geographies in Sweden with a lower willingness to pay for housing. A lower willingness to pay creates challenges with vacancies,

with upgrades and new production projects that are not economically feasible.

Further, we see value potential through the re-education of rental rights to housing rights in attractive areas in Stockholm. The value potential is a result of the fact that the value of properties with rental properties has decreased, while the prices of housing rights have increased and are expected to continue to increase Köpkraften hos hushållen stärks och samtidigt som bolåneräntorna sjunker. Potentialen gäller särskilt Jan Mattssons bostadsfastigheter som ligger i attraktiva lägen i Stockholm med hög efterfrågan och betalningsvilja för bostadsrätter. På bilden ser ni en prognos för lönsamhet vid ombildning av hyresrätt för en exempelfastighet i vårt fastighetsbestånd i Hägersten. The light blue bar represents the revenue that is allocated for renovation. It is a conversion rate of 90% with a discount of 30% against the market price for housing rights. The dark blue bar shows our bookkeeping value and the graphed bar shows the implicit value of our property tax. Already today, there is profitability in renovation with a profitability of 3,000 SEK per square meter compared to the bookkeeping value and the entire 10,000 SEK Lönsamheten förväntas öka kraftigt som förhållande förväntat ökad köpkraft hos hushållen i kombination med sjunkande bolåneräntor. Fyra år framåt förväntas lönsamheten uppgå till 14 000 kronor per kvadratmeter jämfört med bokfart värde och 22 000 kronor per kvadratmeter jämfört med implicit fastighetsvärde. Ombildningar ligger dock inte i Matssons huvudsakliga strategi men visar på värdepotentialen i vårt fastighetssystem. From this, I am very happy that Jomatsom continues to develop positively financially, while strengthening our work in sustainability. I would like to thank all the employees for their efforts during the quarter and look forward to our partnership with Stockholm XTG in the transformation of the energy system in Stockholm.

Together we will develop good living environments for generations. I would like to thank you for opening up for questions.

Om du vill ställa en fråga, tryck fyrkant 5 på din telefon för att ställa dig i kön. Nästa fråga kommer från Albin Sandberg från Kepler. Varsågod.

Kepler ska det väl uttalas, men hur som helst. I had two questions here on the report. The first is the impressive cost control there and the surplus damage in Q2 isolated. I was thinking if it is representative of a Q2 when you look at John Mattsson forward or if you see H1 more as a base and maybe also what it is that makes it come out Thank you for the question. We think that quarter two feels more long-term representative.

That has to do with the fact that quarter one had a very cold and snowy beginning of the year. which means that the cost of the taxi fare and snow removal in the first quarter has been reduced. In the long term, what we have seen so far is that the maintenance costs may increase somewhat, but where we have the potential Yes, good. And then there was the paid tax, or not the paid tax, but the actual tax.

Jag hoppade upp lite grann i kvartalet. Jag bara tyckte mig att se på specifikationerna. Jag tänkte om underskottsavdragen där jag finner här. Jag bara funderar på om det är något speciellt som händer eller om man ska förvänta sig att aktuellt skatt som anleder oss förvaltningsresultatet kommer upp här framöver i linje med det vi ser i Q2. Ja.

Yes, thank you for the question. Yes, it is true that these subsidies are starting to go to zero, but at the same time, there will be new ones in the sense that we invest.

We do not want to speak about an exact forecast, but it is true.

I was thinking about what you said, that you may not be investing so much new, at least before a few years, but maybe in the existing stock, you will still achieve the tax benefits.

Yes, we have, what is closest to Piper when it comes to larger investments, is our upgrade project that we are looking at. start up here. And it's a pretty comprehensive project. The closest to Piper is Rotebro. And it's 283 apartments. And that usually lies on over a million per apartment that is invested in. So even if it doesn't become an investment in a new production and some larger acquisitions of administrative facilities in the near future, then the investments will come into effect here in the future.

And when was the start of Rotebro planned?

Like I said earlier in 2024, it will be the end of the year or the beginning of the next year.

Good. And the last question I had was, you mentioned something that was shot a little bit on the plan process. What exactly is happening there at and Ansberg, quarter by quarter, full understanding that it is possible to exactly determine the quarter plan and so on, but just to get a sense.

Yes, but partly we have worked with to reform that project. Previously, there was a pretty big overlap that was to be done over the track area and we have reformed it now, so now the project will be carried out on each side of the track area. Så det är en del i det. Och sen så är det lite mer omfattande dagvattenutredning som berör hela det här stora planområdet, inte bara vårt kvarter.

Okej, tack så jättemycket. Det var mina frågor.

Tack. Det finns inga fler frågor just nu, så jag lämnar över ordet till Per och Ebba.

Tackar så mycket för ert deltagande i den här presentationen om vår rapport. Tack så mycket. Hej!