K-Fast Holding AB (publ)

A warm welcome to our presentation of the first quarter of 2024. I would like to start by sharing with you the very positive news that we have just entered into an agreement with Aktieöverlåtts om to cancel the Danish portfolio of 311 properties. The same portfolio that we have announced that we have entered into an explanation of the intention to sell. The positive news, in spite of the fact that the market conditions are still tough for the construction and real estate sector, even if we can guess a certain easiness and where the first rate reduction does not feel too far away. At the same time as the conditions are tough, we know that there is a great underlying need for new housing in Sweden. To be active in housing construction and administration therefore clearly has the future ahead of it. Styrelsen har antagit en ny strategi och affärsplan för att på bästa sätt skapa aktieägarvärde under de marknadsförutsättningar som råder och förväntas råda under den kommande femårsperioden. Styrelsen i K-fast Holding AB har antagit en ny affärsplan för perioden 2024-2028. The overarching goal is to achieve a substance value of SEK 50 per share at the beginning of 2028, compared to SEK 24.17 per share at the beginning of the first quarter. The board has also adopted new financial goals and risk limitation measures. The business plan means a change of strategy. From previously solely built for self-management and long-term ownership, in addition to what the prefab business delivers to external customers, will now also be part of what is built and sold to external customers. This is intended to support expansion and self-financing. The issuance can occur from individual properties or portfolios that are newly produced from existing assets, alternatively as forward founding or as real estate rights. Then we will never start a project without going through a rental tax calculation. To make it clear that K-Fastigheter is much more than a property company and has external customers for ready-made projects, as well as for small entrepreneurs, the business will be divided into two business branches, property management and entrepreneur business. The new business areas, project development, prefabrication and construction will be gathered. The goal is to deliver ready-made housing with a base in our self-developed concept houses, as well as high-quality stum solutions. Verksamhetsgrenen's property management will, through efficient management and a high degree of ownership in the company's property, with a focus on housing, contribute to a stable and long-term cash flow. The division of the strategy is to highlight the value created outside of the administrative business. The business branch that is now referred to as an entrepreneur has responded to 84% of the company's results from value changes of completed administrative properties and derivatives since the year 2021, when Prefa became part of the K-Fastigheter family. and the corresponding figure is 82% during the period 2019-2023, which is the period when the previous business plan was in place. Change in the organization should be reflected in the value creation of the truck owners. The operations will be carried out independently under the company's umbrella. In addition to the fact that we have adopted a new strategy and business plan that I have just reviewed, the quarter has been eventful and where we have continued to work to strengthen our balance sheet. Sometimes we implemented a targeted new emission, where we took advantage of the current mandate from vote 23 on 5.8 million B-currencies, and on an additional vote we decided to emit another 842,000 B-currencies, which added 126 million to the company's emissions costs. Notable is that the emission was made on a closing course, without a discount, which we see as a sign of strength. In order to strengthen the balance-calculation, we have fronted two preschools and one LSS resident during the quarter, as well as signed an agreement on the issuance of 20% of our share in Mjölby centrum Prönad. As mentioned earlier, during the quarter we made a plan to expand the Danish portfolio of 311 properties to an institutional investor, which we can now gladly announce will be transferred to an equity agreement, where the underlying property value will rise to 1.1 billion, and where the expected capital gain is at the end of the second quarter. During the quarter, we have launched two very nice and economically strong projects. One in Gothenburg on Smörslottsgatan with 173 apartments, and one in Västerås in the area of Viksäng with 168 apartments, divided into five households. In total, 341 apartments in our first quarter. Just Smörslottsgatan in Gothenburg is a market that we are well aware of, as this became our third project in the same quarter. We already own and manage 300 apartments at the same address. The fact is that just The Boy with Omnide will become our largest management unit within a couple of years, both in terms of property value and rental income, given that the project we have completed, started and planned to start during the year is being implemented. At Entreprenad, we are currently actively working with construction law applications for no less than 1,251 apartments out of the 2,700 building rights that we control. All in order to have as good a future as possible for our project bank. During the quarter, we completed 161 apartments and started building 341 apartments. And we had no less than 1,729 apartments at the start of the quarter at Totalentreprenad in ongoing production, divided into 16 different projects. On the other hand, we had at the start of the quarter 75 ongoing stumbling block entrepreneurs in Prefab. We have previously reported that the order level in Prefab has been unbalanced during the year, with lower inflation during the first half of the year, while the second half of the year has production levels similar to what was before the market waved. The trend with an uptrend in production levels is clear, and where we managed to land two larger orders during the second quarter. One to NCC, where we deliver empty and belonging enterprises to new training and storage facilities for the Swedish Defence Forces in Halmstad, as well as an order to NOKON to deliver a complete empty enterprise for new production of housing, premises and parking garage in Nacka, to an order worth 120 million. The future looks positive for Prefab when we get through the first half of the year. I am proud of all the organizations that in a short time managed to fill up the order books when the housing market was really bombed, to the point that today there are many exciting projects in defense, infrastructure and social housing. For the first three months, we deliver a positive gross profit of 159 million kronor in the entrepreneurship sector. The administration has continued to work hard to reduce the number of vacancies during the quarter. Nevertheless, we are still dealing with immigration vacancies in some completed projects, but in total, the work is going in the right direction. In the administration, we have had the opportunity to start working on parts of the immigration vacancies that arose when we completed more than 800 apartments during the last quarter of 2023. The economic rate was 93.3% at the start of the quarter in relation to 91.9% at the start of 2023. During the first quarter, we have a positive net purchase of 144 housing contracts, but there is a slight reduction between signed contracts and inflows. The corresponding figure for this presentation is 205 contracts in positive net purchases. I would like to point out that we have an attractive property stock, where 66% is built after 2020, and where a total of 88% is built after 2010. We are on a very effective and attractive stock, where all properties are still in the A or B position. With that said, I leave the floor to Martin.

Thank you, Jakob. As Jakob has already done, we will therefore further divide our business into two segments or business areas. Property management, respectively entrepreneurship. When I now go through the results for the first quarter of 2024, I will therefore start from respective segments in order to then end up in the group. We start with property management, whose business largely comprises the business related to the administration of finished property management. Hyresintäkterna uppgick under perioden till 147 miljoner kronor, vilket är en ökning med 28 procent jämfört med motsvarande period föregående år. Ökningen beror på fler förvaltade lägenheter under perioden jämfört med samma period föregående år. Vid periodens utgång hade vi 5037 lägenheter under förvaltning, en ökning med 31 procent. Hyresvärdet vid periodens slut uppgick till 686 miljoner kronor, vilket är en ökning med 36 procent. The net profit increased by 20% to SEK 88 million and the administrative result decreased by 18% to SEK 25 million. The surplus rate rose during the quarter to 60% compared to 64% for the same period in 2023. The reason why we do not see an increase in rental income and rental value fully in the result is primarily due to low average rental rate and higher interest rates compared to the corresponding period last year. If we start with the average degree of exposure, it was 89% during the period compared to 95% the same period the previous year. Here it is the big influence at the end of 2023 that gets a breakthrough. However, as our vacations continued, the degree of eviction improved during the period from 92% at the time of entry to 93% at the time of exit. The interest costs have increased by 46% compared to the corresponding period prior to the year, which primarily depends on increased interest-bearing debt in connection with our completed administrative facilities, as well as increased underlying base interest. Value changes for completed properties rose for the period to minus 153 million kronor. The market value of our existing administrative properties is, however, relatively stable at the moment, with the smaller decrease in value during the first quarter as a result of a general increase in the direct rejection requirement in our values, with about 5 basis points. At the same time, however, the expectations for the coming year's rental increases have increased during the period, based on, among other things, exceptions in the differences between the parties of the rental market. At värdet trots detta minskar med 153 miljoner kronor under kvartalet beror primärt på nedskrivning av marknadsvärden i genomförda och pågående transaktioner där försäljningen av den danska portföljen är det mest väsentliga och påverkar värdeförändringen under kvartalet med cirka 100 miljoner kronor. Slutligen, förvaltningsresultatet per aktie uppgick för perioden till 0,11 kronor per aktie. Ett resultat vi tror kommer förbättras successivt under året i takt med förbättrade uttydnings- och överskottsgrad. If we go over to the business area Entrepreneurship, I will first start with a comprehensive explanation of what is included in this business area. Here we collect our business areas in project development, prefabrication and construction. The revenues in the segment management include all revenues in the business area, both sales to external customers, as well as construction and concept units for business areas and property management, as well as successful profit calculation included in the ongoing project. In the company's results calculation, however, the company's internal sales are eliminated and the successive profit calculation is classified as an unrealized change in value on administrative property. Verksamhetsområdets tillgångar och skulder omfattar i segmentsredovisningen utöver rörelsetillgångar och rörelseskulder i prefab och bygg, även tillgångar och skulder förknippade med pågående nybyggnation, som till exempel tillgångsvärdet av pågående nybyggnation av förvaltningsfastigheter, värden av byggrätter och skulder förknippade med byggnation och förvärv av byggrätter. This classification is used to clarify the activities that take place within the business area and the economic access to debt that is linked to it. Based on the segmental review, the revenues for the business area Entrepreneurship during the period rose to 453 million kronor, which is at least 29% compared to the corresponding period the previous year. During the period, the revenues have been affected by the weaker building conjecture that has hit hard against the previous business. The sales to external customers have halved since the previous year and rose to SEK 78 million compared to SEK 175 million in the previous year. However, the order situation is good before the autumn, not least after the last few months we have received a number of larger orders for housing construction and delivery to the Defence Force. Existing value for the year ended at approximately 1.1 billion, compared to 0.7 billion at the beginning of the same period last year. The construction of concept houses has continued to be stable, even if it is somewhat lower than last year, which primarily depends on high completion rates at the end of 2023. By the end of the period there were 1,729 apartments under renovation and 341 apartments were built during the period. For the period, the revenues related to the construction of the concept house rose to 375 million, compared to 465 million for the same period the year before. In the segment review, the increase in the number of new buildings in the period of success is 1.48 million compared to 85 million for the corresponding period in the previous year. The increase here primarily depends on the project that was started during the period. During the period, the business sector has received positive contributions from results in interest companies, and then primarily results in dairy companies, which in total affects the result of the period by about 10 million, compared to a negative result contribution of 3 million in the corresponding period the previous year. The result before value changes, but including a successful profit calculation in the ongoing renovation, went up to SEK 140 million, equivalent to SEK 0.58 per share. The result is expected to improve during the year in line with increased external sales in our prefab business and further construction of concept houses. So over to the corporation, where I have clearly put in an elimination column this time, where you can see how the successive profit calculation in entrepreneurship is eliminated at the corporation level and classified as an unrealized value change in the administrative stability. In addition to this, I can mention that in the upper category of the segment distribution, joint income and costs are primarily related to the business in the holding company. Of the central administration costs of 17 million, 13 million have been distributed to the business areas during the period. The interest rate, which is considered to be a concern over the past 12 months, rose at the end of the period to 1.6, compared to 1.7 at the beginning of 2023 and 2.1 a year later. The key number is expected to improve over the year as the administrative results in the business area of property management, respectively the gross result in the business area of entrepreneurship, are improved. The period's result rose to 35 million kronor, equivalent to 0.15 kronor per share, which is compared to a loss of 196 million kronor for the corresponding period last year. If we look at the financial position of the company, the value of the company's administration has increased by 3% since the change of year to 15.3 billion kronor. Värdet fördelas på 12,8 miljarder för färdigställda fastigheter, 0,6 miljarder för obebyggd mark och byggrätter samt 1,9 miljarder i pågående nybyggnation, där de två sistnämnda kategorierna i segmentsredovisningen redovisas under verksamhetsområde entreprenad och den förstnämnda under verksamhetsområde fastighetsförvaltning. Ökningen under perioden beror primärt på nybyggnation av förvaltningsfastigheter och påverkan från värdeförändring har totalt sett varit marginell. In the period, interest-bearing debts have increased by 2% to SEK 10.3 billion, divided by SEK 7.1 billion for completed properties, SEK 1.9 billion for construction loans and SEK 1.2 billion for real estate and commercial loans, where completed administrative properties in the segment review are provided under the business area of property management and construction and commercial loans primarily under the business area of entrepreneurship. The increase is primarily due to the completion of administrative properties, and the debt rate has decreased during the period from 60.2% to 59.7%, primarily due to amortization and then, among other things, repayment of the seller's assets for the acquisition of K-Prefab. The loan rate for completed properties has been stable during the period. Own capital rose at the beginning of the period to 5.3 billion, and the company provided a solidity of 30.3%. In the long term, Susanne Städer rose to SEK 5.9 billion, equivalent to SEK 24.17 per share, which is a marginal decrease since the change of year. This has positively affected the results in the period and negatively affected the spending in the new emission. Let's move on to the company's financing and credit keys. Here I have already mentioned the development in interest-bearing debt and how it is distributed. During the period, our interest rate did not increase, partly due to the fact that we secured a relatively large share at the end of 2023, when the long market interest rates were low, and partly due to the fact that the long market interest rates have increased successively during the period. The interest rate increased at the end of the period to 13% compared to 9% at the beginning of the year and 21% at the beginning of the corresponding period last year. The average interest rate rose to 3.38% compared to 3.22% at the end of the year and is primarily affected by the transfer of construction credits to long-term financing, where the transferred loans are transferred to a movable interest rate of approximately 5.5%. The interest bond rose at the end of the period to 3.2 years and the capital bond to 2.7 years. At the end of the period, we do not keep our internal limitation goals in view of the interest rate level. However, our understanding is that this is a coincidence and that the interest rate will be improved as the increase in the rate of exposure improves the administrative result in the business area of property management and increased external sales improves the gross result in the business area of entrepreneurship. Jag vill även poängtera att vi fortsatt håller samtliga våra finansiella koordinater mot våra långivare, med vilket vi har en fortsatt god dialog och där vi under perioden ser en successivt ökad vilja till utlåning, bland annat i form av nya byggkrediter på bra nivåer. In summary, I would like to refer to our presentation by Bokslutskommunikering a few months ago, where I commented on our failure in 2023 as a dark year with negative developments for both our industry and that it was nice to leave that year behind us. However, we already had a bright future ahead of us, and I used the word that just before the collapse, it is the darkest. I think we are still there. Everything may not have gone as fast as we hoped, but we can definitely sense the crust in the east, even if the small moment just before the sun's breakthrough at the horizon took a little longer time this time. But we know that the crust will come. And with that, I would like to thank the listeners and hand over to Jakob to end today's presentation.

Thank you, Malting. In summary, the first three months of the year have started intensively, where we have a new strategy and business plan that can communicate clear goals to live up to the end of the year. And where all the members of the organization on a daily basis work with a clear how. We have a clear strategy to follow and to be able to live up to the new offensive goals that we have set up, but that I find highly realistic. The work to strengthen the balance sheet takes place on several fronts, where we have taken several important steps in the right direction during and after the period, and where the return of the Danish portfolio is such a step. Våra två affärsgrenar, entreprenad och förvaltning, ser ljus i tunneln och en återhämtning är att förvänta sig efter en lång tid av tuffa marknadsförhållanden. Med det sagt vill jag tacka för visat intresse. Som vanligt är ni välkomna med eventuella frågor till ir1k-fastigheter.se.