John Mattson Fastighetsföretagen AB (publ)

Welcome here today. My name is Per Nilsson and I am the CEO of Jan Mattsson. I look forward to, together with our CFO Ebba Pilokart, presenting our report for the period from January to September. And if you want to ask us questions, you can do so by pressing star 5. Sorry, square 5 during the presentation. Then you will be able to ask questions at the end of the presentation when we are done. Jomatson has had a good development during the third quarter. We are ready to show an increase in the result by 21% for the period compared to the same period last year. And we have a positive value development of 0.7% for the quarter. We continue to deliver on our strategy where we initially focused on investment in the existing stock, but where we also communicated our return to new production during the quarter. Under the quarter, we have completed the last stage of our renovation project in Örby. In total, we have completed the upgrade of 34 apartments. And now we are also increasing the pace of our upgrade work with our ongoing large upgrade project in Rotebro in Sollentuna. In the quarter, we have also signed a contract for design, as well as entered an overview with operators for a care and care home in Abramsberg in Bromma. This marks our return to new production, where we are now planning to start production of this project during the first half of next year. Our work to make our property energy use more efficient is ongoing according to plan. under the period, an energy use that is 8.5% lower than for the same period the previous year. After the start of the period, we have now also entered a framework agreement for the installation of solar cells, with the possibility of installing solar cells on all of our facilities, where we see an estimated potential to install solar cells with a yearly production of about three gigawatt hours of electricity, which corresponds to about a third of the total electricity use of Geomatsom over a year. And there are also profitable investments where we assess a direct reduction of about 8%. After the start of the period, the board also decided to start repurchasing of John Madsen's shares up to a total amount of SEK 100 million. This is to further strengthen our value for our shareholders. Finally, it is a great pleasure to note that our work on social sustainability gives results. Throughout the quarter, we have continued to work structured based on our model for social sustainability. And in the ongoing customer survey that we do, we have so far this year a service index and safety index that is up 1.8 respectively 2.4 percentages compared to the previous year's level. If we move on to our goal creation, we can note that we both fulfill our goal of seeing growth in management results per share by 10% and our goal of growth in sales value per share by 7%. If we start with the growth in the administrative results, the revenues increase by 5% for the period. The underlying cause of this is above all the annual rental negotiations for housing, but also that we have a slightly lower vacancy in our commercial stock and that we have increased the average rent in the commercial stock. We have managed to keep up with the strong price increases on the tax fund, which means that the real estate costs are largely stable compared to the same period the previous year and only increases by 1%. That the revenues increase by 5% while the real estate costs are stable means that the turnover increases by 7% compared to the same period the previous year. We have also had somewhat lower interest rates during the period compared to the same period in the previous year, which means that we get an increase in administrative results per share of 21% for the period compared to the same period in the previous year. If we move on to growth in the value of substance, the trend that we have experienced since the second quarter of 2024 continues with positive value development every quarter since then. We have continued to have a stable drop-off for our property portfolio and where we also see that we are improving the rate of surplus in our properties. What also contributes to the positive value development we see during the quarter is that we have had an increased focus on project at the same time as we have also created value in earlier stages in our new production projects. This in turn makes the value development increase to 0.7% for the quarter. The positive value development that we have had also contributes to the fact that we have an increase in long-term substance value per share, which increases to 8.4% per share compared to the same period the previous year. In this picture, you can see a review of the profitability of J. Mattssons different investment alternatives. On the horizontal axis, we review the direct rejection and on the vertical axis, the margin for investment. We have also categorized different investments. We have investments in existing assets, which are these dark blue circles. We have investments in new assets, which are shown by the green circles. And then we have also included the comparison with repurchase of stocks, which is the light blue circle. If we start with investments in existing and new assets, we can see that it is still more profitable for us to invest in existing assets. This is also the background to the capital allocation strategy that we have been working on since 2024, i.e. investing primarily in energy optimizations and upgrading of housing. If you look at the value of FASIS shares relative to substance value, it varies over time. Sometimes it is a substance bonus and sometimes a substance discount. Nowadays, FASIS shares have a general discount of about 20 percent. Housing companies generally have the higher discount than FASIS companies generally. And here is John Mattsson, no exception. If you look at Under the conditions at the start of the third quarter, John Mattsson's housing was valued in attractive locations in Stockholm's suburbs at an implicit real estate value of SEK 33,000 per square meter. These are levels that cannot be acquired by a similar object in the direct market. And if you look at the alternative of exploiting this substance discount and repurchasing shares, we have included it in this diagram. Where we started from the conditions that were relevant at the start of the quarter, that is, our long-term substance value and the share price that was relevant at the balance day. And then we have looked at which direct rejection and which margin on investment that traditional investments need to have to get a corresponding effect on the management results per share and long-term substance value per share when it comes to comparing them with repurchase of shares. And what you can see then is that repurchase of shares, given the conditions that apply, is an attractive alternative for John Mattsson. And with the background of this, we have decided that the purchase of stocks is a good alternative to complement our existing plan for growth. Therefore, our board has also decided to initiate the purchase of stocks to a budget of up to 100 million kronor until next year's vote. And what I want to emphasize in this is that we still have very profitable investment alternatives in our FASIS portfolio. And I will tell you about that a little bit later. And that the purchase of shares is not at the expense of the plan we have for investments in the existing stock or our return to new production in 2026, but should be seen as a complement. If you look at our property, it is unchanged compared to the previous quarter. We have continued to have 4,325 apartments in our stock, where 82% of the available area of 345,000 square meters is made up of housing. If we move on to our development projects, we have continued to have a good progress in our projects in the earlier stages. If we are to mention projects that have changed status in the detailed plan since last year, we can mention the project Ekporten in Lidingö, where we are now done with the consultation and where we are now planning to go out on a survey as a next step that we determine will take place during the first quarter next year. If we move on to the project Pilsätten and Landsätten in Örnsberg, the two projects have been out on a survey. and where we are now working towards an assumption during the second half of next year. And as I just told you, our project Pinsetten has been on review. The project Pinsetten consists of two buildings, a slightly higher house, as you can see in this picture, and a slatted house. Both of these projects are part of a larger urban development project, where Örnsberg's industrial area will be converted into a functional and living urban environment, where up to 1,400 new homes, business premises and preschools will be created. And in this project, you will also open it up in the current state and close the area and link it together with the nearby part of Axelberg. Örnsberg, which is located i närheten till centrala Stockholm, i södra Stockholm med goda kollektivtrafikförbindelser genom tunnelbanan är ju ett väldigt attraktivt område när det kommer till att tillskapa nya bostäder. Och som jag nämnde, det ni ser på bilden här är ju det högre huset som är en del av vårt projektpinsetten. Det är ju ett hus som There are 16 floors. In total, there are 81 apartments and a preschool in Bottenplan. This will be one of the higher buildings in the area, which means that the view from the top will be fantastic with views over Stockholm. And we want to make it accessible to all residents, so the project will include a larger roof terrace at the top and also a community area that all residents in the house can use. If we move on to the next building in the Project Pinzette, it is this laminate building that comprises 138 rental apartments with a garage in the basement. And this house is also in the same way as the upper house in direct connection to the tunnel track. So this will also be very attractive rental apartments for moving in. Let's move on to our last project in the urban development project in Örnsberg. It is the project Landsätten, which is a housing rights project involving 50 apartments. It is also shaped as a lamel with loft floors and where the upper floors are inserted to create attractive terraces. Both the loft floors and the terraces look out over the park that will be installed in direct connection to this building. Även det här huset ligger med väldigt bra kollektivtrafikförbindelser genom tunnelbanestationen i Örnsberg. Med det vill jag lämna över till Ebba.

Tack så mycket. Vi ska titta på resultaträkningen för tredje kvartalet 2025. Det visar ett ökat förvaltningsresultat och ett positivt resultat. We can start in the middle blue column, where the results are for the period from January to September 2025. The revenues for the period go up to 504.4 million, which is 24.2 million higher compared to the previous year. This difference is mainly related to the rent increases on housing, but also increased commercial revenues compared to last year, including an effect from a turnover of about 2 million kronor, which was booked in Q2 this year. We have an economic growth rate of 97.6% at the beginning of the quarter, in line with the previous year, when it was only 97.4%. Compared to the growth rate in Q2 this year, the growth rate has increased, mainly due to the fact that 11 apartments in the last stage of the renovation project, Gengasen 4 in Örby, have now moved in during the quarter. So in total we have 53 vacant apartments, and if we exclude the 35 apartments where upgrades are taking place, then the economic efficiency rate with those excluded would be 99.1%. And the 18 apartments that are unoccupied are apartments that are expected to be renovated and therefore do not have a rental. If we look at the cost side, then we have the property costs during the period, they are one and a half million higher compared to previous years. Among other things, this is due to the fact that maintenance this year has risen to a long-term sustainable level. If we look at Q3 isolated, it is the property tax that may stick out a little in comparison. In Q3 2024, there was a retroactive effect with about 1.6 million to our advantage after a review of a tax decision that and this year there is about SEK 300,000 on the other hand from retroactive decisions in Q3 and this leads to a deviation of minus SEK 1.9 million in Q3 isolated compared to Q3 isolated last year. The turnover for the period increased to SEK 372.0 million, which is a corresponding increase of SEK 22.7 million or 7% compared to the same period in 2024. Under perioden uppgick kostnaderna för centraladmin till 39,3 miljoner kronor jämfört med 37,8 miljoner föregående år. Det är på grund av något högre personalkostnader inklusive högre medarbetarbonus i år jämfört med tidigare år. Finansnettot för perioden är minus 154,8 miljoner. Det har förbättrats med 9,8 jämfört med förra året som är följd av lägre genomsnittlig räntenivå i portföljen. On the bottom of the table, we see the net income, which has decreased from 3.2 percent last year to 3.0 percent at the end of the period this year. The results for the period were 177.9 million, compared to 147.0 at the end of Q3 last year, which is an increase of 21 percent. For the period, the interest rate rose to 2.2 times and the surplus rate to 73.7 percent. And isolated in the quarter, the interest rate was actually 2.6 times and the surplus rate the whole 76.7 percent. And that is for the company very high levels for a single quarter, which is very exciting. We can look at the change in the real estate value for the period. It is visible in this blue column in the table. Today, our properties are valued at 14.5 billion kronor. It is an increase of about 450 million SEK since the change of year. To achieve this increase, we have invested 180 million SEK in our facilities, especially in upgrades and energy projects. We have unrealized value changes that go up to a total of plus 266 million SEK. The tax requirement in the entire portfolio, 3.4%, has remained unchanged since Q1 2024. The change in the direct demand during the period has contributed to negative minus 19 million kronor. The drift net in the portfolio has increased, mainly due to the rent increases for the housing and the effectiveness of the property costs. This gives about 256 million kronor in value change. It is very exciting to see that our increased focus on the project business has also created an unrealized value change in ongoing projects and building rights 29 million kronor under perioden. Det är 18 miljoner av dem som är från nyproduktionsprojekt som har ökat i värde på grund av att projekten kommit in i nya faser i planprocesserna och 11 miljoner är positiv värdeutveckling från uppgraderingarna i Rotebro. Totalt sett har förändringarna från driftnetton och projektportföljen haft en effekt på värdeutvecklingen med hela plus 285 miljoner eller plus 1,9 procent för perioden. These changes resulted in a property value of 14.5 billion SEK at the beginning of the period. If we look at the balance sheet, we see these 14.5 billion SEK at the top in the blue column, which are the balances per 30 September 2025. And if we compare these 14.5 with Q3 last year, then the property value was 13.9 billion SEK as we see there. is 49.1 million SEK at the start of Q3. It was 404.9 million SEK at the same period the previous year. Then this company's emission had been relatively recently implemented. The debt side, interest-bearing debt, goes up to 6.8 billion SEK with a decrease compared to the previous year, when the decrease is a total of 311 million SEK. Men under sista kvartalet 2024 så använder vi 300 miljoner ur kassan till att amortera bort skuld. Så att nettoskulden, 6,7 miljarder vid utgången av perioden, det är ungefär i linje med föregående år. Och det betyder att projekten som är igång än så länge finansieras av kassaflödena från verksamheten. Men när investeringstakten nu ökar nästa år så finns lånelöften att utnyttja och vi har goda relationer med flera banker. At the bottom of the table, we can see the reward rate at the start of the quarter. It rises to 46.1%, which can be compared to 47.8% at the start of Q3 last year. The improvement in the reward rate is due to the increase in the value of property. The long-term supply value rises to SEK 100.18 per share. compared to SEK 92.45 per share at the start of Q2 2024. This is an increase of 8.4% per share, which is exciting. On the next financing picture, we can start in the lower left corner with the interest payment. The entire 88% of our loans have an interest payment period that is longer than one year, and our total interest payment period increased per balance day to 3.2 years. Måtsson has as a strategy to have a high percentage of interest savings in the portfolio to reduce the exposure to volatility in the interest market and create a possibility for interest costs. Due to our low-cost assets, it is extra important for us to have this readiness for situations where the interest market can move upwards. The active interest-saved volume was 70% of the STIBOR-connected loans during the balance day. It is much lower than at the start of quarter two, then it was 87%. The decline is due to the fact that right at the end of the third quarter, interest swaps belonged to large amounts. They were replaced on October 1st by forward swaps becoming active swaps, which means that this active interest-saved volume rose again on October 1st to 90.4%. But per balance day it was 70%. The soaps that have been replaced have a higher guaranteed interest rate than the old ones that ran out, and this affects the average interest rate in the portfolio upwards, according to this staple diagram to the right. The staple diagram aims to clarify the interest savings, and it shows for each quarter in large volumes that are either insured with soaps or with fixed interest loans. The green line shows the interest rate for the insured volume, exclusively in the credit margin. This is not a prognosis for the average interest rate in the total loan portfolio. But during the quarter, interest rates rose from 2.83% on June 30 to 2.97% on September 30. The top left of the diagram shows the capital structure in the portfolio, including the unused loan statements, which are in light blue. The credit structure period is on average 2.4 years during the period. Yes, we can move on to the ability to admit, which is the next picture. Here is John Mattsson's current ability to admit on a 12-month basis on September 30, 2025. We have inspected the entire residence permit per balance day. And we calculate the administrative result without calculation, because without decision-making influence. And I will say that this should not be compared with a prognosis. Hyresintäkterna baseras på kontrakterade intäkter per balansdagen. De uppgår till 673 miljoner kronor, en ökning med 3,8 miljoner sen föregående kvartalet. Det beror på minskad vakans eftersom den sista etappen i gengasen Rot i Öreby nu är inflyttad. Vi har också något högre hyresvärde från uppgraderade lägenheter som har bidragit. Drifteöverskottet, 488,6 miljoner. Det är en ökning på 2,7 miljoner sen föregående kvartal. Debt maintenance costs and also costs for the property administrator are based on a rolling 12-month outfall. Central administration is estimated at 52.0 million SEK, which is in line with the previous quarter. The financial net is calculated based on the average interest rate on the net debt per balance day, in addition to interest rates for cash and periodized deposits. Eventual interest on liquid funds has not been considered. Finansnettet var här minus 221,8 miljoner vilket är högre än förra kvartalet då eftersom snitträntan ökat med 14 punkter nu per 30 september. Sammanfattningsvis har förvaltningsresultatet vid intjänningsförmågan gått ner något och uppgår nu till 214,8 miljoner vid utgången av kvartalet. Arbetet med att effektivisera fastighetskostnaderna och genomföra uppgraderingsprojekt för att skapa värde fortsätter. Det syns också i den långsiktiga trenden från de senaste 12 månaderna i inkändisförmågan. Med det vill jag lämna över tillbaka till dig, Per.

Tack, Ebba. Sedan de makroekonomiska förutsättningarna försämrades kraftigt under 2022, så har jag och Mattsson haft ett stort fokus på att effektivisera våra fastigheter och öka We have worked on both initiatives to increase our revenues and lower our costs. On the revenue side, we have worked with value-generating upgrades and we have also worked on renting out vacancies, especially in commercial stocks. And on the cost side, we have put all costs over the company, where our work with the efficiency of our property energy use has been an important part for us to get down to the cost level. If we look at the diagram in this picture, we can see Jomatssons development between 2021 and 2024. It is shown in comparable volume per square meter. It is shown in the light blue line. We also have the dark blue line, which shows the market-driven development during the same period. And there we have then provided it through the general rental adjustments that occur every year, and where we have also used the Statistical Central Office's administration index to adjust rental costs during the same period. And in this diagram, it is pleasant to see that John Mattsson has increased and received a an increase in our turnover per square meter during this period, with SEK 180 per square meter for market effects. This is important both to increase the cash flow in the current business, but it is also a contributing factor to the fact that we have actually increased our real estate value during this period. Since the second quarter of 2024, we have had a positive value development in our stock every quarter. In total, this value development increases to 5.5%. This is also important for us when it comes to freeing up investment space for further investments. This value development in our stock has also contributed to Our reward rate has fallen back to 46%, which means that we now have room for investment in the future. And as I mentioned earlier, we still have very good investment alternatives within the framework of our FASIS portfolio. And this picture shows what value change potential we see in our main areas of investment, that is, energy optimizations, value creation, apartment upgrades and new production. When we start to look at energy efficiency, we have a goal to reduce energy use by 45% by 2030 compared to the 2021 level. Here we have come about halfway, which means that we still have a great potential. When it comes to our upgrades, our goal is to upgrade 200 apartments per year. where we have the potential to upgrade all 1,500 apartments in our stock. And finally, in the new production, our long-term goal is to start production 250 apartments per year, where we currently have a project portfolio that corresponds to 730 apartments. Projects that are in attractive conditions with high payment will and demand for housing, which then contributes to a a good economic feasibility of the project. So if you look at these three areas, they correspond to a potential of a total value change of 1.5 billion kronor, which corresponds to about 20 kronor per share. To sum up our report, we both fulfill our financial goals on growth in administrative results and long-term value per share. After the end of the quarter, the board has also decided to start repurchasing of Jörn Mattssons shares in order to further strengthen the shareholder value. And as I just showed, we still have great potential for value change in our real estate. and where we have historically shown a high ability to realize value in our portfolio. And with that I would like to open up for questions.

During the question time, the participants can ask questions by pressing square 5 on their phone. If you want to return your question, please press square 6. Next question comes from Tiwan Shirvanpur from SEV, please go ahead.

Good afternoon, I have a few questions and the first one is on the financial net. The financial costs were down by 12% in the last quarter and when I then put your interest-bearing debt in relation to the average interest and then add this volume of interest, then I get it to 54 million per quarter and the income is 55 million. Could you clarify how it happened that in Q3 it was 6 million less?

Hi Kevin, yes. What I tried to say when I talked about the financing picture is that the whole quarter until the last days, the average income in the portfolio was And then when some big swaps went out on September 28, we got a much higher average rate on the balance sheet than the average during the whole quarter. This contributes to the fact that the rate that ends up in the result calculation during the quarter, where the average is lower than what we report now on the balance sheet.

So you could say that the income capacity is more representative than in Q3?

Yes, exactly, because it is per balance day that we take the average when it comes to income capacity. But in the quarter, the average has been lower in July, August and a large part of September.

Good. And then I have a question if you have any kind of indications of next year's rent increases from the negotiations?

There have been a few outbreaks and they are at about 3.5%. There was a signal earlier this week from a general-use company that had put itself on a lower level. It was clear that it was a misleading reference point due to the fact that it also included a larger negotiation when it came to upgrading rents, which affected a large part of their portfolio. We still believe somewhere between three and a half and four percent. We are very much in the historical connection between the KPI adjustment and the annual rental adjustment. And there we still have a certain inflation debt left from the inflation peaks during 2022 and 2023. So we believe somewhere between three and a half to four percent.

I just have a question when it comes to investments. If I understand correctly, you plan for about 120 start-ups next year and at the same time maintain a fairly high investment pace when it comes to housing upgrades. Could you give any kind of indication of what type of investment pace you expect to maintain in the coming year?

When you said 120, do you mean new production? Exactly. Next year we plan to start our project that we are working towards, which is our nursing home. Det omfattar ju någonstans mellan 80 och 100 lägenheter. Sen har vi också Sicklaön som vi möjligen kan starta, som gör att man skulle komma upp i de nivåerna du nämner. Men det som vi planerar för och har kommunicerat sedan tidigare är vård- och omsorgsboende på mellan 80 och 100. So when it comes to investment levels for new production, we will have to get back to that later on when we have completed the design and have a clearer picture of which investment will be required. When it comes to these ongoing investments, we will have the corresponding distributions that we have made this year. We do not see any major adjustments there, except that that the root project will make up a larger part of the total production. There we have an investment of around 250 million. It covers 282 apartments and it is 180 that we will finish next year. So that can be added when it comes to the amount of investment.

I have indicated that this is about 400-500 million in cash growth in three years, and then possibly this additional project in 40 apartments. So that's about it, you can assume.

Yes, you can assume that. We have revised the forecast when it comes to the care and welfare housing, so now we are somewhere between 300-400 million. But as I said, we have to return to more exact figures when we approach the start of production.

Very good, those were the questions I had. Thank you.

Next question comes from Erik Granström from DNB Carnegie, please.

Thank you very much and good afternoon. I actually only had one question and that was about the possibilities or how you actually see your portfolio today and if you think about being in the transaction market? Either when it comes to the acquisition side or when it comes to selling something. How do you see those possibilities? Or are you simply satisfied with the portfolio as it looks today?

We cannot speak in the current situation about individual individual transactions in general, and there we will continue to work with an active portfolio management. We will work with both buying and selling in order to increase our risk-adjusted rejection in the portfolio and also to clean up the stock against the clusters we have. When it comes to acquisitions, what we see ahead is that over time we need to add more root potential, since we are already working through the potential we already have. And then of course we have started a project with a nursing home in Bromma. We see that the nursing home is an attractive segment that completes our existing real estate portfolio in a good way. So we do not rule out that we can look at the acquisition of that type of access.

Okej, men det betyder med andra ord att man ska inte anta att starten på ett återköpsprogram av aktier kommer att finansieras genom att ni säljer fastigheter utan det är helt enkelt kapitalallokering givet nuvarande förutsättningar.

Det stämmer, så ska man se det.

Okej, jättebra. Det var mina frågor. Tack.

Som en påminnelse, om du vill ställa en fråga, tryck fyrkant 5 på din telefon. Det finns inga fler frågor just nu, så jag lämnar över ordet till talarna för eventuella avslutande kommentarer.

Vi tackar för att ni deltagit i dagens presentation av vår rapport för det tredje kvartalet. Vi hörs här igen den 12 februari när vi presenterar vår bokslutskommunikering.