Logistea AB (publ)

Good morning everyone and welcome to the presentation of Logistea's Q4 and full year end report. As always, myself, Niklas and Philip Löfgren, CEO of the company. We have during the year continued to deliver on our strategy to build a portfolio of properties with long lease durations, stable cash flow and profitable tenants. We currently hold 155 properties at a value of some 15.7 billion SEK. The occupancy remains high and stable at almost 97%. The vault also remains high and the NRV per share now stands at 16 kroner 60 öre. The leasing market has improved and we'll give you some examples of that later in the presentation. Looking at the highlights for 2025, and 2025 was a very active year for us at Logistea. We are reporting almost 1.1 billion SEK of income for the full year, an increase by 52% compared to last year. The NOI is up 62% for the same period and the income from property management is up even more 142% equals to some 511 million SEK for the full year. And the income from property management per share is up SEK or in 15% increase compared to the beginning of the year. We have in addition to that completed projects at a value of 364 million SEC, meaning that the portfolio has increased by more than two and a half billion SEC in one year. The cash flow continues to improve, and we're reporting a 58% increase year over year. And finally, looking at the strength of the balance sheet, we're reporting a very low 7.9 times net debt to EBITDIA. As I said, we have continued to grow the portfolio over the year. Yields, i.e. net income over property value, have remained fairly stable, whereas the average cost of debt has come down. But we are now reporting a yield gap that is at 2.4%, as you can see to the right on this slide. And then moving on to the transaction market and transactions completed over the year. And here we're starting with the properties that we have acquired during the fourth quarter. They total some 335 million SEK. The first one is the bus terminal that we presented on the Q3 call. Located in Karlskrona and leased to Connect Bus, the company that operates all buses in that region. 10-year lease and we bought this property at a yield of almost 10%. The second one is a portfolio of two lease to Svenskater and Arginis. Lease duration is six years, fully leased properties, and the initial yield here represents some three, sorry, 7.4%. And finally, the third one is a small portfolio, also with least durations of six years, modern and well located properties in Karlstad, Kumla and Lindesberg. And also here, initial yield of 7.4%. uh looking at uh the total for the year uh we have completed nine transactions uh and we have completed the two projects for nkt and intersport as you can see from the pictures uh well uh well located in modern properties uh in in norway sweden and finland And looking at what these transactions then means for the company as a whole, we can see that we have bought properties in average at a yield of 8.2% to be compared to the average running yield of 6.8%. Overall vault is 11 years, which is longer than our average vault in the company. And we have managed to increase the income from property management per share by 0.26 kroner, which equals some 25-26%. Adding the projects, the vault is 12 years and the income from property management per share is 0.30 kronor. This shows that the right issue we did during the summer was creative and we still have good dry powder to continue to take advantage of interesting deals that occur on the Nordic market. We're also proud that we have completed the development for Intersport in Nässjö, where Intersport now has taken possession of their premises. The property was delivered in time. even a bit before and the construction cost was also in line with budget. The yield on cost is 7.25% and now Interspot has started to pay rent for the building. The beginning of 2026 has started strong and we have already signed two new deals. The first one are two logistics properties that we purchased from MyWay. Completion took place earlier this week. The largest of the two properties is located in Trollhättan and leads to G&K Aerospace, a company with turnover of more than 14 billion SEK. The two properties combined have a vault of 11 years and the purchase price is a bit more than 300 million SEK. Yield-wise on this one, we're talking roughly 7%. The next one is a property located in Karlskrona. We bought this property also beginning of this year, vault five and a half years. As you can see property value of 260 million SEK and the largest tenant in the properties is NKT which is a company that we know extremely well from our properties in Alingsås and Falun. Yield wise we're talking seven and three quarters. Also very happy to say that we've seen a very strong start of the year when it comes to new lettings. We have signed a couple of new leases that shows that we have well positioned properties that are attractive on the leasing market. The first lease is with a large company within the defense industry. We've signed a new 10-year lease for 16,400 square meters of premises in Kallskoga. Parts of the space is today leased to another tenant, but we're replacing that and expanding with this tenant, so we get a long lease with a very profitable tenant. And the total lease amount for the 10 years exceeds 130 million SEK and the net letting effect per annum is, as you can see, 6 million SEK. In Borås, we have signed a couple of leases and part of that is to replace a lease that was terminated in 2025. So meaning that we will not have any vacancies. So we signed the lease before that premises is being vacated. It's actually three tenants in total and as you can see leases of five and a half years and the net letting effect taking into account the terminated lease is 1.6 million. It's an extension or new lease with an existing tenant in Ljungby. Here if you remember we had a bankruptcy a year and a half ago and this is a property that we have been filling up over time and now we signed this new lease four-year lease and the effect on the net letting per year is 2.2 million SEK. Moving on to the run rate and following the completion of Intersport and the results of the Q4, we have an NOI of 1 billion 47 million SEK per year. And income from property management is now at 603 million SEK. The main drivers are new acquisitions and lower cost of capital, lower cost of debt. And on the negative side, we have seen an effect from FX and of course the rights issue we did in the summer of 2025. If we take the Q4 run rate and add the properties acquired beginning of this year, the income from property management is 634 million SEK. which equals some one krona 24 per share. And more on the honest capacity, which is obviously one of our top priorities to deliver on. You can see that we have managed to deliver steady growth quarter over quarter. And as I said, on the on the previous slide, we are now at one krona 24 per share, taking into account the most recent acquisitions. As we've said before, and we have delivered on long stable income in all our markets, the leases in the non-Nordic countries are even longer. And Philip will talk more about recent financing in one of those markets. We also discussed the bearish share started with 31% is now down to 25. And obviously will continue to decrease in the pace we're buying other other tenants. And also that what we have communicated in the past, this number should be taken down to below 20%, which is one of the criterias to become investment grade. As we said, the occupancy remains high at almost 97%. We're showing a small positive net letting for the fourth quarter as you can see. But as we said on the previous slides, the start of 2026 looks promising with a couple of new leases signed already. So with that, I'll hand over to Philip.

Thank you, Niklas, and good morning. Let's take a look at the earnings and results when we sum up the eventful year of 2025. The three key figures I want you all to take away from this chapter is the strong increases in profit from property management per share, the solid balance sheet, and the decreased cost of financing. Logistea's revenue for the quarter increased to 285 million compared to the same quarter last year of 247 million. The increase is due to acquisitions during the year and also a smaller contribution from the Like for Like portfolio. The net operating income came out at 251 million, an increase from 215 million in the same quarter last year. contributors to the increase are acquisitions and increases in the like-for-like portfolio where property costs have declined due to renegotiated leases and decreased rent losses. The net operating income is as I've seen in previous winter periods still affected by higher property costs when it's colder outside, which is the main explanation of the difference from the previous quarter. Both revenues and the net operating income were affected by negative FX changes, 1 million in the quarter and 14 to 15 million for the whole year for the revenues and the net operating income. And operating margin has increased and was in the last 12 months period around 91%. The adjusted operating margin where we exclude the rent supplements from the revenues came in at 97%, an increase from 93% at the beginning of the year. Triple net leases and an active asset management are two main drivers for the strong key ratios. Profits from property management came out at 135 million. And in line with the estimates, the decrease from last quarter is due to the lower net operating income. And moving over to the profit from property management per share, if we exclude items affecting comparability, the increase in the quarter was 24%. And for the year, the increase was 41%. and the main drivers for the annual growth apart from acquisition is the lowered cost of borrowing Looking at our key metrics, the loan to value ratio has been stable around 48% during the whole year. We have a lot of headroom up to our financial limitation. And as I've said before, one should not be surprised to see the loan to value ratio exceed 50%, especially with the current transaction pace we have. With our interest cover ratio increasing and in combination with a solid net debt to EBITDA ratio, our balance sheet is prepared to be more levered. Looking at the credit maturities, we aim to shave the peaks and distribute maturities evenly over the period. The 641 million maturing within the upcoming 12 months are in final discussion, mainly regarding terms. We still sense banking market with large appetite for our types of assets. In the end of the period, we have bank relations with 13 banks across Europe. Here is an overview of our debt portfolio performance during 2025. We are proud to have decreased the average interest rate down from 5.0 to 4.4% during the year, driven by both decreasing market interest rates, but mainly from margin decreases from bank loans. So in the fourth quarter, we renegotiated 1.4 billion Swedish kronor, lowering the margin by an average of 16 basis points. The 1.4 billion includes loan where we have managed to decrease the margin for the second time in 2025. Today we are borrowing in the Swedish banking market at around 120 to 140 basis points. And looking at Norway and Finland, the margin is around 20 basis points higher. We've also during the quarter managed to finance unencumbered assets in the Netherlands with a long-term new financing of 21.7 million euros from a large European bank. Looking back, we have closed the fiscal year of 2025. We managed to deliver on all our four financial targets and limitations. Profit from property management per share increased by 41%, as I mentioned earlier. The NRV per share increased by around 8% for 2025. But looking at a five-year average, the annual increase amounts to 22.5%. The loan to value is still in the conservative zone and the interest cover ratio is continuing to increase now at 2.6 compared to 2.1 times in the beginning of the year. 2025 was the first year that we had a dividend and now the board of directors have decided to propose to the AGM a dividend of 0.2 kronors per share equal to around 102 million Swedish kronors. The main reason behind the proposed dividend is that Logistica today has reached a level of earnings that allows a higher dividend that does not interfere with future growth. The proposed dividend is equal to around 20% of the profit from property management for 2025 and around 16% of the profit from property management in the earnings capacity on today's date. So the key takeaways from the finance side are the strong increases in the profit from property management per share both historically but also going forward. We have a good position to continue the growth journey with our solid balance sheet and improved margins in the bank on both new loans and in the current loan portfolio opens up for increased earnings. And with that, I will hand over back to Niklas.

Thank you, Philip. And to summarize 2025 for us, it's been a very active year. We're reporting, as you can see, strong financials, stable and strong financials. We managed to grow the business by almost two and a half billion SEC following acquisitions and development. We still have dry powder, making sure that we could act if we find good investment opportunities. The banking market is good for companies like us, and we have a strong balance sheet with LTV below 50%. And finally, the leasing market has improved. And we have already now in the beginning of the year signed new leases that will affect the net letting by roughly 10 million SEK. With that, we open up for any questions, please.

If you wish to ask a question, please dial pound key 5 on your telephone keypad. To enter the queue, if you wish to withdraw your question, please dial pound key 6 on your telephone keypad. The next question comes from Emil Ekholm from Pareto Securities. Please go ahead.

Hi, good morning, Nicholas and Philip. A couple of questions from me. Starting off with the Karlskrona acquisition, it is time to close now mid-March according to the press release. Can you say anything about closing the Karlstad, Kumla and Lindesberg assets? When in Q1 do you expect to close them?

Yes. I'll take the ones maybe not in the right order as you had. Uddevalla Trollhättan was closed this week. The properties in Lindesberg, Kumla, Karlstad, also closed and then finally you had a question on the Karlskrona property on that one let us double check with a colleague if that one is closed or not it might be not but let me we'll double check during the call on the Karlskrona one perfect

And then you had a quite strong start in 26 in terms of leasing activity. No need to be specific here, but can you say whether net leasing at least is positive so far in 26?

uh it is uh so uh as i said we have signed leases uh with a positive effect of roughly 10 million sec beginning of the year on on on the net leasing uh obviously the quarter is not uh done yet uh but there is we see you know clear signs that the leasing market as such has improved um but also we see proof that our properties are attractive on the leasing market. So without promising too much, we were quite confident that the first quarter of 2026 will show good positive net lettings.

Sounds good. And then in the earnings capacity, since there is some rent uplift in the signed business so far this year, is the effect from that included in the 13 February rental value figure?

On that one, we've taken the 21st of December figure and only added the acquisitions announced. So no other changes such as the leases I just mentioned or CPI or anything like that. So it's yes that we've added the announced transactions.

Okay, perfect. Thanks. And then a little bit of specific question on the valuation yield. On page 11 in the Swedish report you say that it's 7.3, but in the English version it's 7.1. And then on page 21 under the valuation section it's the opposite with 7.3 in the English version and 7.1 in the Swedish version. So which one should be the correct valuation yield figure?

It should be 7.1, but we'll confirm that to you and others after the call as well.

Okay, thank you. And then just lastly on other income, it's zero in this quarter, but 11 for the full year. How should we look at this number going forward?

So can you repeat that one?

Yeah, so other income is zero in this quarter, but it's 11 million for the full year. So how should we sort of view this figure going forward?

Yeah. So in the other income of 11, we have so you can see income that we have not estimated to gain like previous bankruptcies that we now get rents from. So going forward, I should put in maybe one or two million per quarter since we have income from batteries starting to come in now in the first quarter.

Very clear. Thank you. That was all for me. Thanks.

Thanks.

The next question comes from Fredrik Stensvid from ABG Sundahl Collier. Please go ahead.

Thank you. Morning. Two questions. First on the industrial area in . When is the sort of switch between existing tenants and the new tenants happening? And is there a gap in between where you won't recognize any rent? That's the first one.

Yeah, so on the Kolskoga lease, there will not be a gap on the overall rental. uh value uh and and you could say partly driven by the fact that the the uh the upcoming rent is higher than the existing one so that there is a tenant in place for for parts of that building and we have signed an agreement with them to move out uh and then there will be some some uh some time for for some uh teis uh making sure that the premises is fit for the new tenant but but overall on a full year basis you you should ex assume the at least the rent in place for the existing tenants and then obviously going forward it will be the six million plus and the tenant will gradually move into the new uh until december of 26. okay very good thank you and then the second one just uh yes just to make sure i think nick has been mentioned previously that

in the earnings capacity figure as of today the only change versus year end is acquisitions. I just wanted to see where you are on FX. Is that the same FX for both dates and if so is it the year end figure?

exactly so it's it's the same ffx used so so no other changes so to say between between uh december 31st and and and today's date other than the transactions that we signed yeah very good thank you that's that's it as a reminder if you wish to ask a question please dial pound key 5 on your telephone keypad

There are no more questions at this time. So I hand the conference back to the speakers for any written questions and closing comments.

Let's see if we have any questions. No, we don't.

But we can say closing of the Karlskrona property is expected to be in March this year.

And the reason why there is no set date is that this one goes under the ISP permission that we need from the authorities. But as Philip said, during the March is intended. And this was for and yesterday we got two properties in Kallskrona in the presentation. So the first one on page five, the bus terminal, that one is completed. And now we're talking about the second property on page nine in the presentation, the one partly or mainly leased to MKT, that one would be completed in March. uh good uh if there are any following up questions uh just let uh philip or myself know and we'll we'll answer those as well of course perfect have a good day thank you thank you