Logistea AB (publ)

Thank you very much and welcome again to Logistia presentation of the first quarter of 2024. Niklas Uckeman, CEO of the company and next to me is Philip Löfgren, who is CFO. We are starting the year strong. We deliver our best result ever. The revenue from the driftnet is 17-18%, while the management result is 46% compared to the first quarter of 2023. As you can see, we can already see a management result of 35 million for the first quarter of 2024. We have continued to deliver the properties that are rented to stable guest of residence on long contracts. The average run time is now more than 8.1 years. During the quarter we have carried out a directed emission of 250 million SEK, and we will return to that in more detail. But we can see that after the emission, the rate of payment rises to 44%. The emission will be used to invest, invest and invest in our existing assets. The focus remains to acquire and manage low-logistics, low-industry properties. We have now managed to reach a property value of just under SEK 6 billion, which is pleasing. We have a continued high emission rate. The valuation yield is now rising to 6.7%, which is the highest level we have seen in the company since the start. We will return a little later to what we see on the direct market, but it is clear that a lot of time has passed since we have seen the yields peak. We will soon see a declining demand for our types of properties during the year. We can go to the next page and talk a little about the business that has been carried out. The first two are properties that we communicated in the fourth quarter, but then have been added during this quarter. So we will not talk so much more about them. The latter is a property that we have both written a contract on and acquired and added during the quarter. It is a property in Falun. It is fully rented to NKT on a 13-year lease agreement. NKT as a guest we have known since earlier from our property in Allingsås and a guest that we really like. Both because it goes extremely well for NKT and their businesses, but also because it is a type of guest who likes to invest in the property together with us as a property owner. After this acquisition, NKT is our biggest guest. In the rest, if you look at the guest structure, there are no major changes to talk about, except for NKT who becomes our biggest guest. We have continued to have a high share, 99% of the agreements have an index clause, and 97% are linked to KPI. As you can see, the net In the first quarter, we have an external value of 24% of the property. We have an external value of everything in the fourth quarter, and the rest is internal value. In total, we see a positive value adjustment of 121 million SEK. In the second quarter, we have a positive value adjustment of 121 million SEK. In the third quarter, we have a positive value adjustment of 121 million SEK. In the third quarter, we have a positive value adjustment of 121 million SEK. In the third quarter, we have a positive value adjustment of 121 million SEK. In the third quarter, we have a positive value adjustment of 121 million SEK. In the third quarter, we have a positive value adjustment of 121 million SEK. And of course, everything else is the same. As we see the rents Sink during the year, it is likely that this type of property investments will be able to The level of rejection will be able to sink a little faster than other types of properties.

And over to the finances. As Niklas was saying, we have revenues in the quarter that have increased by 17% up to 111 million SEK. The revenue increase is primarily driven by the implementation of the acquisition and final project. We have a net profit increase of 18%. The net profit for the quarter ended up at 78 million SEK. And here we are done with a long, cold winter. The Q1 has been affected by the effects of the season. And even here, the increase is primarily driven by the acquisition and project. The administration result is up to 46% to 35 million SEK. And notable here is that the financial net that is included in the administration result is the same as the comparable period, i.e. Q1 2023. 33 million SEK, and that is despite the fact that we have a 22% larger property portfolio. The capital for the quarter was 20%. Let's go on and look at some key figures. For the third quarter in a row, we have a loan rate of around or below 45%. We feel very comfortable in that key figure, but we feel that we can increase it forward. And during the quarter we have refunded a large part of our bank debt, which has led to the capital bond has increased from 1.9 to 2.5 years. And the fallout structure, which you see down to the right, has moved, where a large part that would have fallen for almost 12 months has moved forward 3 years. As Niklas was saying, we have carried out a direct investment of 250 million SEK during the quarter. The focus has been to get some institutional capital. The emission rate was the latest value in the year. Therefore, we have had a value increase from 13.2 to 13.9 through the period result and the emission. If you were to compensate for the emission, we would have had a substance value of 14 SEK. The rate of interest is higher in the quarter, 2.2 compared to the last 12 months, 2.0, which means that we are moving up. We had 1.9 at the end of 2023. The insurance has dropped from 84 to 71 percent. We see that positively now when we have the coming interest rates that come towards the summer. The income capacity. We have made some changes in the registration so that a reader can follow the income capacity against the result count. The biggest difference is that we have broken down the housing costs. We have higher housing costs but also higher rents. The same is true for the real estate net. It is precisely because we have so much rents linked to electricity, heating and other things that we get in as housing costs that we factor in on the housing costs. We have increased the housing value by 38 million SEK during the quarter. The reason for the management result not increasing as much is that the financial net has increased based on a higher average rate and a higher

loan stock.

Through the directed commission we welcome the Länsförsäkringen Funds, which is the new shareholder in logistics. Also Slettö, the FedAAPE Fund, M2, Carnegie, and Pionilsson with several are signed. The technical course was on the last published substance value, we consider to be a strong sign. On the left we see that the stock has recovered in the fall and we are now in line with

the Carnegie's real estate index.

Good. This is outside the quarter report but we communicated two contracts this morning and we thought that when we still have many listeners we would take a few minutes around those two contracts. The first is a fully-automated property that we intend to acquire in Åmål. The guest is Dana Sweden, who is a supplier in the car industry. The very large supplier is mainly Volvo. Relatively new building, it is listed on a return lease of -14.5 years. We buy this property for an initial It will be financed with bank loans and the remaining part that is not bank loan we will pay with new-emitted logistic shares for a course of 14 kronor. The second property is a property in Borås, Viared, fully-automated to Samhall. This property is under production right now, so we will add it when it is finished, which is expected to happen in Q4 in November. In addition to the building, we will invest in solar cells, charge poles for the guest and a storage battery. The total investment is initially .5% and here we will pay with logistic shares in a span of -15.50. This course will be set in relation to the increase in the fall. If the course is under 14 kronor, it will be 14 kronor and if it is over 15.50, it will be 15.50. Both of these transactions are close transactions, so we will call for an extra company to let our shareholder vote. Two modern properties that add both good guest and good running times. In Borås we are already big and have our own management in the area, so natural access. The last one is an article that we communicated a few weeks ago, where we have issued 6100 square meters in Kristinehamn to the fortification office. This is the agreement for the run until 2029. That was what we were going to present, so we are very happy to answer any questions.

If you want to ask a question, press square 5 on your phone to ask yourself a question. If you want to return your question, press square 6. For those of you who listen to the presentation via the webcast, you can ask written questions via the form under the webcast. As a reminder, if you want to ask a question, press square 5 on your phone. Next question comes from Viktor Rud Stenlöv from APSK.

Hello Niklas, hello Philip, Viktor Rud Stenlöv here from AVG Sundbykål. Can you hear me?

We can hear you.

Good. I wanted to start with a little competition in the quarter, where was it? You said you have already rented out half of it, when can you decide to fill out the rest of the fortification?

It is the fortification in Timro, so they went into competition around the year shift. Then in relation to finding new owners for the business, we have signed an agreement for about half of that area. There are ongoing and reasonably good discussions for the remaining area, both with existing tenants who can take on several businesses, i.e. co-locate, but also with other types of tenants who do not have anything to do with the tenants today. We do not dare to promise that we have any agreements signed until we have the next agreement in three months, but there are good hopes to fill out that area. It is a newly built, very nice fortification, so it is the right conditions to find tenants at relatively low square meter prices.

Understood, thank you. Then you wrote that the fortification costs are up 12% comparable to the current one, and that the cost is a bit higher, and that it is a re-planning of the administration and other things. Can you just dig a little deeper into that and maybe share so that we understand what drives the costs?

Yes, it is above all one or two properties where we as the property owners stand for the drift of electricity and heating costs that have been going on during the first quarter, given the cold winter. There we have taken a strong grip both in relation to our sustainability committee, but also in line with our current administration work, to find new systems to negotiate agreements, make sure that the heating or heating is not in the development as it has been now. In a simple way, you can bring it down to one or two properties where we have heating costs.

Understood.

Then on the value changes, you break it down into three different parts. It is 75 of the total 121, then it is 74 from the rising drift net, 12 in tax and water, but as you said, it is 35 million on the basis of a high demand for heating. So then I just want to understand how that works.

Yes, exactly. We can take out that side. There we have it, exactly one front. It says adjusted yield requirements and for a positive value change, it is rather that the yield goes down. But I think the reflection you make is that we totally for the company have an increased value yield. Both are correct. What happens is, and we can take Falun as a good example, if we consider that we enter the quarter with a value yield of 6.4. Then we acquire the property in Falun at about 8%, then it increases the value yield. But it is still the case that we have certain properties where the demand for emissions can have gone down a little compared to the fourth quarter. But in total, the demand for emissions for the whole portfolio goes up. But it is driven by the fact that we have acquired properties that are significantly higher emissions than the average was when we entered the quarter.

Then I understand that the adjustment is not what drives the 5 million research, but the total portfolio. I want to get over that a little.

We have not snubbed over it ourselves, but we have understood that it is not super clear if you are not into the details, but it is simply the explanation.

Yes, understood. Then it is clear. I was thinking if we could touch on, you mentioned, I have made some acquisitions, and here in the morning you announce even more. The annual goal was at 8% and then you have indicated other yields. But what are the possible yields in your pipeline if you would give an assessment?

In the context that we made the right emissions, we have said that we should buy properties that emit at least 7% for that emission liquid. That is fixed. Then it is clear that we think we are good at finding good business and have a good contact network. Without promising too much, we want to make even better business than at 7% but it is simply 7 years up.

Understood. Then I thought if we could, as a last thing, maybe also get an update on how the project is going in Waggrid, for example. I would like to know more about that report, but do you have any more color on that?

The ongoing project that we have right now in the Allingsås, where we are building for NKT, and that goes according to a plan and maybe even a little faster. We have communicated that this will be done towards the end of the year. We have a building in Waggrid. What happens there in the near future is that we are installing a large number of batteries. Then we have a large building right and a building right in Båra Mo. There are discussions with potential tenants. But it is clear that we are in a market where the yield on investment with new buildings must be higher than the emissions we can get when we buy a existing property. It is a calculation of what we will do with our emissions liquid. Should we buy existing properties at -8% or should we build new at the level of emission that we think must be at least -9%? There are discussions, but it must happen at the right level of emission. We are not stressed about starting to build just for the sake of the building, but it should be at the right level of emission and the right level of rent.

If you were to start today, what would the yield be?

In our case, it must exceed what we can buy existing buildings on. In our case, it should be the absolute best guest. Maybe we can go below 8, but it should be at 8% plus. Yes,

understood. Then maybe the last question, with lock and read, if we have any suggestions.

The details plan is still in progress and we are talking to potential guest. There is good interest for that site, but we have said that before we have something written that is binding, we should not stick out too much. We work with the municipality and what interests are there.

Continue full control of the option?

Yes, exactly. We have extended our option with Sven Junga municipality. We hope we can return to that.

Great, we look forward to it. That was all my questions. Thank you.

Thank you. There

are no more questions right now, so I leave the floor to the speakers for any written questions and closing comments.

We have received this via chat from Mattias, who asks if you have any conversations about the co-operation or purchase of existing property companies. Yes, we have always had to say that. We have communicated powerful growth goals and as we have said before, if we are to reach those goals, it will be a combination of buying property, looking at portfolios, paying with shares that we do here in the morning in the form of emissions, emission in the property business and then of course we look at both the co-operation and being able to buy property companies and pay with shares. Absolutely, we are active on all of them. And we are in the market to find good growth that creates

value for the owners of the shares. Then we see no more questions here.

We thank you for today and if you have any questions, you can contact me or Niklas on email or phone. Thank you for listening. Thank you very

much. Bye.