Logistea AB (publ)

Welcome to Logistia Q2 Earnings Call 2026. During the questions and answers session, participants are able to ask questions by dialing pound key 5 on their telephone keypad. Now I will hand the conference over to CEO Nicholas Zuckerman and CFO Philip Lofgren. Please go ahead.

Good morning and welcome to the presentation of Logistea's first half of 2026. As always, to present myself, Niklas Huckeman, and Filip Lövgren. And also, as always, we're happy to take any questions after the presentation. We have during the first half of 2026 continued to deliver on our strategy to build a portfolio of long-leased properties within logistics and light industrial. We today own 170 properties at a value of 17.6 billion SEK. The occupancy stands high at 97% and we're reporting a net initial yield of 6.8%. Focus for the growth has been the Nordics and will continue to be the Nordics and will come back to the transactions undertaken during the first quarter of this year. Highlights for the first six months include that we are reporting income of 622 million SEK representing a 22% increase compared to last year. The NOI stands at 559 million SEK and the income from property management is up 27% to 313 million SEK. The income for property management per share is up 20% to 0.61 SEK per share. And we have so far during this period acquired properties at a value of 1.4 billion SEK. We have had a high net letting of 22 million SEK following a very active first quarter of this year. And the income from poverty management per share in the run rate is up 13% year to date. And we still have a large cash balance of more than 500 million SEK. And that gives us room to continue to expand when and if we find interesting investment opportunities. As said, we have reached a portfolio of almost 18 billion SEK, reporting a stable yield and a stable yield gap of, as you can see, 2.4%. The transactions during the second quarter includes two properties in Finland. The first one is located in Helsinki, Vanta. It's located close to the airport and built in 2023. The property is fully leased to a strong Finnish tenant within the food industry on a 12-year lease. We're expecting closing end of August, and the property is valued at SEK 142 million, representing a net initial yield of 7.5%. The next one is located actually on the airport of Turku, leased to tenants like FedEx and DHL. Slightly shorter leases, three years in average, but the tenants have been in the premises or in the properties for 25 years. And Turku has a large exposure to air freight due to many companies within the pharmacy business in the region. Property value 114 million SEK representing a net initial yield of 8.5%. The next one is the most recent transactions that we have done in July. It's two properties located in Tampere and Olo. Both properties are leased to Vianor on seven year leases. and Vianor is owned by Nokian Tyres. Both properties are built to suit for the tenants in 2008 and 2012 respectively. Here we're talking 145 million SEK and a net initial yield of 8%. And on this one, we're also expecting closing in mid-August. And adding the properties that I just mentioned on the previous slide, we have now reached one billion SEK worth of properties in Finland. Finland is an important market, as you can see on this slide with the flags. And not only have we reached a billion SEK worth of properties, we also just recently hired an asset manager that will start after the summer. And if we summarize what we've done the first half of this year and the property just presented on the previous slide, we are up at 1.7 billion SEK at an average yield of 7.3%. And these acquisitions are in total adding 0.17 SEK per share in terms of income from property management. As we mentioned on the previous call, we're continuing to work with the site in Lockrid outside of Borås. It covers some 730,000 square meters of land, which equals some 470 square meters of building rights. And as we've said before, we also have an agreement with Vattenfall for delivery of 150 megawatt of power. We are in ongoing discussions with potential tenants for development and obviously we'll come back when and if anything is signed and reported to the market. The NOI in the run rate amounts to almost 1.3 billion SEK, and income for property management amounts to 678 million SEK. We have added CAGR, and as you can see, for the past two and a half years, it's been 28%. And the increase for the past year is 19%. The portfolio composition has obviously changed slightly over the past year. We are now up at 94% of the property value located in the Nordic countries. And as I just said, we have now reached a billion SEK worth of properties in Finland. Hardly any changes in the leasing portfolio during the second quarter, but we had a very strong first quarter as you can see. And for the first half year, we're reporting 22 million of positive net lettings. And it's worth mentioning that 18 million SEKO of that number is not yet included in the occupancy rate and nor in the run rate since the tenants have not moved in yet. And with that, I hand over to Philip.

Thank you, Niklas. Looking on the outcomes on the financial side, I can confirm a stable growth on all of the lines on the P&L. The revenue for the quarter increased to 321 million compared to the same quarter last year of 263 million and the last quarter of 301 million. The increase is mainly due to acquisitions and leasing activities during the period, but also a 4% increase in the like-for-like portfolio from the quarter. Revenues for the period amounted to 622 million, which is an increase of 22% from the same period last year. The net operating income came out at 293 million for the quarter, also increased by 22% from the same quarter last year. And the contributors to that increase are acquisitions and increases in the like portfolio. And for the period, the NOI increased 23% to 559 million. Operating margin and adjusted operating margin on a last 12-month basis have been stable compared to the beginning of the year on around 91.1% and 96.3%. Moving over and looking at the profit from property management. During the quarter, the market interest rates have moved quite a lot in all currencies, especially in the NIBOR, which has increased about 30 bps from the last interest fixing date. And I do have some more information about loans and interest fixing on the next page, but these market interest rates have affected the net financial income in the quarter, which probably explains the difference from the consensus estimate. Profit from property management per share increased by 19% for the quarter and 20% for the period. And looking at the last 12 months basis, the increase was 24%. And following the increase of the net financials in the quarter, you can see that the interest hedging ratio for the whole group was about 75%. And looking at the loans in the NOC, Norwegian Krona, the interest hedge rate was around 44%, which is the reason why the NIBO interest change had an instant effect on the quarter's net financials. We've chosen not to hedge the NOC loans as high as the SIEC loans, since we don't believe that the price for longer interest fixing in NOC was worth the price. But we do monitor the interest market for opportunities daily. And as for so, we have fixed interest rates in SIEC through derivatives. amounting to a nominal value of 1 billion at the average interest rate of 2.4%, with maturities of almost five and a half years bringing the average interest maturity up to 2.3 years at the end of Q2. The loan-to-value ratio has decreased a bit in the quarter since the transaction we've acquired was acquired by available cash, no loans on that, together with the ongoing amortizations. In relations, then the net debt to EBITDA ratio decreased to 8.1 times. And going forward, as I've said in previous calls, we will aim to increase the loan-to-value ratio a bit up to 55% to maximize the return on equity. We still see a great appetite from the senior banks regarding lending terms relating both to current but also new lenders. This has resulted in a decreased average margin on bank loans from 1.7 to 1.5%. And during the period we've refinanced or renegotiated around 2.1 billions of bank loans, resulting in a drop of 66 bps on the margin on those loans. We also continue to focus on the amortization rate to free up cash flow for value adding acquisitions and investments. During 2026, we've succeeded in lowering the rate from 3% down to 2.5%. And last but not least, looking at the financial targets and risk limitations, the curve is starting to flat out at 20% to 25%, looking at the annual growth of the profits from property management per share, well above the target of 15%. NRV per share increased 11% on a year-to-year basis, and excluding the paid dividend, the increase was 13%. The five-year figure is largely affected by the bigger share issue Logistea did back in Q3 of 2023 when we chose to issue new shares in order to buy back bond loans to solidify the balance sheet. The NRV per share dropped from 16.5 down to 13.3 following that share issuance. The loan-to-value ratio and the interest-cover ratio are both on the safe side and in line with our strategy. With that, I will hand back to Niklas for some closing remarks.