Logistea AB (publ)

Welcome to Logistia Q3 earnings call 2026. During the questions and answers session, participants are able to ask questions by dialing pound key five 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 interim report for the third quarter of 2026. As always, myself, Niklas Huckeman, and together with Philip Löfgren, we will take you through the report. And also, as always, we take any questions after the presentation. We have continued to deliver on our strategy during the third quarter, meaning building a portfolio of long-list logistics and light industrial properties in the Nordics. At the end of the quarter, we own 174 properties with a property value of approximately 19.4 billion SEK at a rental value of 1.4 billion SEK. The occupancy rate is up to 97.5% and the average lease duration is 8.6 years. The net initial yield excluding project is 6.7%. Sweden remains our largest market with 61% of the property value, followed by Norway with 21%. Denmark and Finland are growing, and with the acquisitions in the quarter, we are now also present in Stockholm. Including the most recent transaction in Denmark, the Velux transactions, which we closed after the end of the quarter, we have passed 20 billion SEK in property value. The implied yield as of Q3 is 7.8% and the dividend yield is 1.2%. Once again, we're reporting record income, net operating income and profit from property management. For the first nine months, income amounted to 949 million SEK, which is up 19%. Net operating income was 859 million SEK, up 18%, and profit from property management increased by 29% to 486 million SEK. And finally, the profit from the profit from property management per share is up 23% to 0.95 SEK. So far this year, we have acquired properties for 3.6 billion SEK and net lettings amounts to a positive 23 million SEK. Profit from property management per share in our earnings capacity, including the VLX transaction, is up by 31% since the start of the year. And we ended the period with a cash balance of 380 million SEK. This slide shows the journey. At the end of 2022, the property value was 4.6 billion SEK. And following the KMC merger and continued acquisitions, we're now at more than 20 billion SEK, as I said. At the same time, we have kept a healthy yield spread, the net initial yield of 6.7%. and our average interest rate have come down to 4.2%, which gives us a yield gap of 2.5%. Talking a bit on the transactions that we've signed in Q3 and totaling 2.1 billion SEK. The first one is two properties in Tampere and Ulle in Finland, which I mentioned at our last presentation. Both are fully leased to Vianor on seven year leases and the purchase price was 145 million SEK. That transaction was closed on August 20. The second one is an important milestone for us, our entry into the Stockholm market. It's a cross-stock terminal in Spånga, 54,000 square meters, fully leased to DSV Road on a seven-year lease and plus one year penalty if they decide to terminate the lease. The purchase price was 950 million SEK, a rental value of 72.5 million SEK, and that represents a net initial yield of 7%. And that deal was closed, as you can see, end of September. The third is our largest single transaction this year. We have acquired properties in Denmark, in total 131,000 square meters. All properties fully leased to ViaLux on 11-year leases. Purchase price just north of 1 billion SEK. Rental value 78 million SEK. And this represents a yield just short of 8%. This deal was closed on October 15, meaning that we now have around 2 billion SEK worth of properties in Denmark. Summarizing the year so far, we have acquired 10 properties or portfolios for a total value of SEK 3.6 billion at an average yield of 7.3%. And this compares well with our average interest rates of 4.2%. Of these, 2.6 billion SEK closed during the first three quarters and VLX closed in the fourth quarter. In total, more than 318,000 square meters with an average lease duration of nine years. And together, these transactions add 0.33 SEK to the profit from property management per share. As you can see, the acquisitions are spread across Sweden, Finland and Denmark, which strengthens our Nordic platform. A short update on the Lockridge site outside of Borås. As you see on this page, 730,000 square meters land, roughly 470 square meters of building rights. And we have the agreement with Vattenfall for delivery of 150 megawatt of power, which is expected to be delivered in 2030, 2031. Zoning plan, as we've said, has gained legal force and we have exercised the option to acquire the land. And the next step is to sign a purchase agreement with the municipality. And we are in those discussions right now. And in parallel with that, we are in discussions with potential tenants for future developments. So as we've said, when and if anything is signed on this one, we'll of course come back to you and inform the market. Looking at the earnings capacity, it continues to improve quarter by quarter. As of 1st October, the rental value amounts to 1.4 billion SEK and the net operating income to almost 1.3 billion SEK, which is up 23% in one year. Profit from property management amounts to 753 million SEK, which is up 28%. Per share, profit from property management in the run rate is 1,47 kronor, an increase by 27% compared to a year ago. And if we include the VLX transaction, it amounts to 1,55 kronor per share, which is a 21% increase compared to the start of the year. Looking at the longer trend, earnings capacity per share has grown by 15% per year since 2022 and 30% on an annual basis since beginning of 2024. And as you know, the growth is driven by acquisitions with a clear yield gap and improved financing terms. A new slide, so to say, where we will discuss capital allocation and acquisitions versus buybacks. We obviously continuously evaluate the best use of the capital given the market conditions. And as you know, we have a mandate from the AGM to buy back up to 5% of the shares. Here we're trying to illustrate and we have compared the two alternatives buybacks or acquisitions, and we have used the same amount of equity, the 335 million SEK, which corresponds to our current maximum buyback amount, so 5% of the outstanding shares. Buying back shares at the end of or in Q3 at an average price of 13 kronor 11 öre would increase the profit from property management per share by 4.2% in year one. If we use the same equity for acquisitions and we have used the same terms as the last two deals that we have undertaken, the deal with Velux and the DSV property in Stockholm, representing 7.4% yield and 3.9% interest cost for new debt. That gives us an increase of 5.5%. So 4.2% increase for buybacks and 5.5% increase if or basically for similar transactions that we've just undertaken. And then once you remember that the gap widens over time. When the cash flow from the acquisitions is reinvested, the effect of the five years is 7.5% compared to 4.7% for the buybacks. So today acquisitions are better user capital but obviously we'll continue to evaluate this as conditions will change and they will change of course. And finally on this slide also worth mentioning that if we would to do buybacks of the 335 million SEK and provided the current turnover in the share that would take us seven months. So there's a time factor also included in the buyback scenario. A few words on the tenant mix. And obviously the recent transactions have also meant that we have a more diversified portfolio. Bevis share of the rental income is down to 21%. DSV is now our second largest tenant with 8%. And if we include the Velux transaction, which is not included on this page, the BRV share will decrease to approximately 19%. Around 93% of our net operating income comes from the Nordic, with Sweden at 57% and Norway at 23%. Our leases gives us high visibility in future rental income. Around 98% of the leases are CPI indexed. Occupancy rate is 97.5% and the average remaining lease term is 8.6 years. The third quarter was quiet or stable depending on how you see it on the leasing side with a positive net letting of 1 million SEK and no terminations. For the first nine months in total, net letting amounts to 23 million SEK compared to minus 4 million for the same period of last year. And this is followed a very active first quarter of the year. And worth mentioning is that 50 million SEK of the net letting is not yet included in the run rate or occupancy rate since the tenants have not yet moved into their premises. And with that, I hand over to Philip.

Thank you, Niklas. As you explained, we have record high income, net operating income and profit from property management to report for the quarter. The revenue for the quarter increased by 14% to 327 million compared to the same quarter last year, which is primarily linked to acquisitions and leasing activities, but also a like-for-like growth in the quarter of 2%. Revenues for the period increased 19% and amounted to 949 million, where the like-for-like portfolio increased 2.6%. The net operating income came out at 299 million for the quarter, increased by 11% from the same quarter last year. And contributors to the increase are acquisitions and increases in the like-for-like portfolio. And for the period, the NOI increased by 18% to 859 million. And I can add that we in the third quarter had slightly more maintenance costs compared to the other quarters, and there's nothing dramatic behind that. The property expenses in the earnings capacity is still a good guidance for the coming 12 months. Also, we have had an insurance event where a roof was partially punctured in a storm in April where solar panels blew off their mounts. The property expenses were negatively affected by around 3 million, while the other income line was positively affected by roughly the same amount since the cost was reimbursed by the insurance company. And last, as I've explained many times before, there is an internal fee for property management, which we have reclassified and moved up from the central administration to the property expenses, impacting the property expenses by 16 million year to date. And this also affects the operating margin and the adjusted operating margin on the last 12 months basis, which came out at 90.2 and 95.1%. And if we then exclude the reclassified internal property management cost from the net operating income, the NOI in the like for like portfolio has increased 2.3% in the period. Profit from property management for the quarter increased 33%, and if adding back the items affecting comparability in Q3 2025, the increase was 23%, where the net financial income was less in Q3 than in Q2. And looking at the period, the increase was 29%. Profit from property management per share increased 23% for the quarter and 21% for the period. And looking at the last 12 months basis, the increase was also 21%. For the transaction we closed in Q3 which includes the properties in Finland and the DSV terminal in Stockholm. We have chosen to initially have the loans floating due to the volatile interest market and this explains why the hedging ratio decreased from 75 to 67 percent in the quarter. We monitor the volatile interest market daily and will take actions when we find opportunities and in the short term we aim to keep the interest maturity at current level or higher while in the long term we aim to have it much longer. Looking at the credit maturity, the bond loan of 850 million is maturing in Q1 2028, which gives us time to plan the refinancing. And looking at the bank loans maturing one to two years from now, we already have multiple discussions in prolonging the loans in advance, some even with better financing terms such as lower margins and lower amortization. The largest loan facility in the 3.5 billion maturity is a 2 billion loan facility that matures in Q4 2027. And we expect that loan facility to be prolonged in the beginning of 2027. And looking at the key metrics on the right hand side, the loan to value ratio has increased a bit in connection with the completed transactions where we've secured initial LTV of around 60%. And as I've mentioned before, our stance is to keep the loan to value sub 55% long term. With the recent closing of the 1 billion VLUX transaction in Denmark, our loan-to-value will still be below 55% plus having liquidity for future capital allocations, such as asset acquisitions. Looking at the debt portfolio, we see a good appetite from Nordic lenders in the banking systems where we can compare multiple bank offers before we pick the one that suits us best in connection with the lending in assets acquisitions. Today, we have engagements with around 14 different senior banks, and as a result of this, the terms are getting better for every quarter. Year to date, the average banking margin was down 20 basis points, and the average amortization rate is down 0.6 percentage points. And as you can see to the right, we've managed to renegotiate or refinance bank debt of 3.2 billion, resulting in an average 48 basis point drop in margin. We expect more of these effects from upcoming refinance events, though with lower drops, but possibly lower amortization rates in order to free up cash flow. All of our financial targets and limitations look solid, and the one that we tend to focus on the most, the profit from property management per share, is the most promising. And comparing the outcomes to the earnings capacity, where the profit from property management has increased 27% on a year-on-year basis, we expect the percentage increase to be well above the target of 15%. NRV per share, excluding dividends, is in line with the 15% target on a last 12-month basis. The loan-to-value is at a comforting level, and the ICR increased a bit from the last quarter. With that, I will hand back to Niklas for some closing remarks.