Nivika Fastigheter AB (publ)

Hello and welcome to today's webcast. With Nivica Real Estate, we will present our DLR report. With us to present is the CEO of the company Kjellgård and Sifa and Christina Karlsson. After the presentation, a Q&A will be held. If you have any questions for the company, you can send them in with the form to the right. With that said, I leave the floor to you.

Thank you Ludvig, and again a warm welcome to the presentation of the quarter of Nivica Real Estate over the third quarter. As I said, my name is Sveik Kjellgården and I have been the CEO of the company since June 1st. With me today is CEO and Vice CEO Christina Karlsson.

Hello!

Let's get started. As I said, I am the new CEO from June 1st and I am here to present myself to the listeners. I have worked in the construction and property industry my whole life, my business life. I started as a trainee at NCC, where I stayed for 11 years after I finished my education at KTH. Then I was followed by 8 years at the registered real estate company Hufvudstaden. After that, I took a local construction company called Byggpartner i Dalarna to the stock market. It took me about six and a half years and then followed five years as CEO of the registered real estate company Sibus Nordic Real Estate AB. Niklas Bergman, who was the founder and CEO earlier, before I left, will remain in Nivica and will transition to strategic business development. That is a great confidence for me, because he has extremely good market knowledge in Småland and the west coast. My short-term focus will be on the growth of Nivica as a market leader against investors and potential new shareholders. A little short about Nivica. If you look at the real estate companies today, there are two ways to diversify their risk. One way is to focus on one supply and spread it to a number of different markets. The other way is to take several different supply lines on a smaller local market or geography. Nivica has been the latest business idea and we have a focus that together with the guest of residence, we are an attractive, safe and long-term property owner. We believe that local development, when and where, creates better conditions for sustainable growth and creates the best business. We have a purpose to long-term own, manage and develop high-end commercial properties, complemented with modern housing and thus create profitable and sustainable growth. We are locally active from coast to coast in Småland. We have the headquarters in Värnamo, but also offices in Jönköping, Växjö and Varberg. Varberg covers the west coast, which is one of our areas. We have a diversified property portfolio. In property value, 60% of our 11 billion comes from commercial properties and 40% from housing. Looking at the value of the rent, two-thirds are from commercial properties and one-third from housing. The commercial properties are mainly industry, camp, office and social properties. Looking at our development since 2017, we see a good and stable growth with a nearby low rate of loans of about 45%, a strong growth in substance value and a stable financial result with high profitability. Moving on to our third quarter, we see a strong quarter with high activity. We see increased rental revenues and improved drift network. The economic revenue level is still high at 96% of the entire stock and it is distributed at 95% of commercial properties and 98% of our housing. We have a weakly increased net revenue with half a million during the quarter. We have drawn a 20-year rental agreement with Ionity on the establishment of 24 fast chargers out of the E4 in Värnamo. This is a project that further increases the attractiveness of the area and contributes to our hard work. We have established the project Hodsluttsängare in Jönköping with 40 apartments and To3 in Nybro with 62 apartments. Together, we add these 12.5 million in annual rent value. We have also completed a construction of a car-visiting facility in Växjö. We have added 0.8 million in annual rent value and acquired four commercial properties with triple net sales on the west coast with an annual rent value of 9 million. We have acquired the project Stationshallen in Gislaved. This rental value, which will be completed, will contribute with 23 million to us, is 70% commercial premises, which means that Gislaved will have a 25-year rental contract. We have also cleaned up the portfolio and removed two properties in Eksjö. This is a positive cost and management angle for us. We have also removed a construction of a car-visiting facility in Stigamo in Jönköping, which we sold for 20% over the book price. Then we go over the financial figures and I hand over the floor to Kristina. Thank

you, Saker. Then we go into the numbers in more detail. If we look at the revenues during the period, they rose to 172 million kronor. This is an increase of 15% compared to the previous period, the previous year's corresponding period. We have a high export rate, as Starkes said, and we have a drift network that has increased by 18% compared to last year. There is a large part of the work that has been done internally with energy adjustments, with an adjustment in our organization since then back in the context of a total balance and result-tracking of the company. If we look at the financial figures during the period, it was 60 million, 10% lower than what we had in the corresponding period last year. The main thing was that it was a lower rate, we were at .6% average today and we had .8% last year. The rate of the rolling 12 is 1.8 compared to 1.5. Historically, the production result has increased by 90%, so we are at 44 million kronor. And it is the nice increase in the drift network that is a lot, and a lot of what follows us down to the production result. If we look at the production results for shares, it has developed in the same way. We have 55 years now. If we look at the value changes for properties, they are neutral for the period. We have not really touched yield or anything else, but what has changed is the growth in revenue and other drift changes in the properties. Realized is 10 million, where the main result is from the sales of the industry, the stock has increased. If we look at the balance, we see that we have a property value of 11 billion. Of those, the management property is 94% and it is 10.4 billion, a little low. We have ongoing construction for 320 million and we have unbuilt land with empty and construction rights of 300 million. So a very high part of the portfolio is cash flow, because there is also a part of these future construction rights. And we have also been able to make a lot of profit. As Sverke said, we have acquired four properties during the period and we have completed two housing properties and one commercial property. We have also removed Eksjö, which we will see in the future. The rent-bearing debt is 5.2 billion, it is basically the same level as we had a year ago. We have a net loan rate of 45%. We have no obligations loans, only Nordic banks. In the portfolio we work with 12 different banks. We have a rent savings of about 2.5 billion and we have a granted and non-profit financing of just 400 million kronor, consisting of mainly construction credit and a small credit account. We have similar funds of 200 million, a little low. We have our own capital of 5.5 billion. And long-term substance value of 63.80 per share. Worth mentioning here is also if we look at the graph in the middle with capital decline. The income tax is completely rewritten and extended. There is no return that is not re-financed here during the year. If we then look at the current income tax, we have a house value of 140 million kronor. And it is over 100 million more than what we had per book closing date until last year. We have a chance of 30 million, which gives us rent income total of 790 million kronor. The housing costs are 390 million and there we see a marginal reinforcement, mainly through the finished project, but also that it is acquired, high-cost and several triple net assets here now during the last quarter. So that's a nice transition. We have central management and financial costs and land on management total of 233 per share. That is 230 million kronor per year approximately.

We also look at the project that we are working on now. When they are completed, they will add 14 million per year to the current accounting year. This is divided into 82 housing units with a annual rent of 13.2 million kronor. And then a renovation of an estate to the police that will give an additional annual rent of 0.5 million kronor. In the state diagram you can also see when the rents are lost over the projects we are building. And especially in Q2 2026, when the Gislaved project is completed, we will get a very nice effect. We summarize and look at the current situation and the outlook. In the picture you can see when we took the first spade in Gislaved and it is the project Station Salén. This is a large project in Gislaved where we will get to contribute 23 million in rents on a yearly basis. 70% of them are commercial premises. They are designated as a municipality with 25 years of rent per share. We complete that with a safe housing with 50 apartments. And the influx is planned for the first half of the year 2026. Then we have made a package deal in Värnamo and Ljungby where we buy a hotel property with E4 in Ljungby. We are also building an existing hotel in Värnamo with a one-room building. Because of the demand we see on the hotel floor. And the same operator who runs these two hotels will also rent a gym and a relaxation section in our new headquarters. We are building the hotel on the whole area and the entire area will be covered by a bad rent value of about 13 million. And a average waste of about 8%. After this we have also acquired two permanent housing units and an industrial site in Gislaved. This is precisely one of our strategies that we will create a management cluster where we can get effective management and local property. They add 5.4 million in annual rent value. We also see that we have several requests from both existing and new tenants who want to adapt and expand their areas and look at new tables in our area, which is very positive. That was all we had and we are happy to take questions.

Thank you so much for the presentation. I think we will start with the question time at once. The management result increased by .2% compared to the same period last year. What has been a driving factor to this impressive increase?

I can take that question. And it is many weeks small or many weeks big, one might say. We have increased the rents and we have also added high-cost properties and we have also changed some of the lower waste. But above all we have worked hard with cost control internally and also energy efficiency. Nivika has today -12% of its electricity that comes from solar cells in its own facilities.

Which is a very high degree when you look at the industry. We

are also looking at the per square meter, which is actually the second largest in Sweden, despite being a small company. And then there is the transition of organization, cost control, which contributes. As long as we do not change the rents, we expect that the Riksbank will lower down the plan and we will see more improvements in the future.

Thank you. You mentioned that your rental rate is around 45%. What do you think about this level of progress and how do you see the purchase in the coming quarter?

A rental rate of 45% is incredibly nice to have in such a high rental situation that we are in. Then we have a financial policy that means that we can operate up to 55%. So we will certainly see changes in this in the future. Of course, when we make a purchase, they are partly financed with borrowed money as well. So we will certainly see a adjustment of this, but not any dramatic changes. We are constantly looking at the acquisition. We bought in Gislaven this in the quarter and we will see. We have growth on the agenda and we are well positioned for it, so I look forward to the future.

Thank you very much. The financial network is increasing the credit card from the card despite the falling rental unchangeable debt. It also looks to be something above the average rental in Anger. Can you give any comments on this?

Yes, we have a transfer from the credit card to bank loans. We

have completed a number of larger projects during the year. Which means that we have the income in the result count, but then we also take costs, so it is a transfer between balance and result count.

Thank you. You are completing housing in Nybro and Jönköping, safe housing. Can you comment on possible vacancies?

It is early to say. In Jönköping it is fully clear. The projects that we have completed there. In Nybro it is a bit slower, but we have an interest in our apartments and there is a number that has already moved in. It will probably be arranged later.

Thank you very much. You have low vacancies and a loan to value far below the maximum limit. How do you see to start more projects in the future?

We really like to start projects and we are incredibly good at it as well. As I described here, this project that we have in Ljungby and Värnamo, we have direct casting at about 8%. We have started station salé in Gislaved too. It is incredibly fun that we can do that in this high-income environment, that we manage to start a project profitably. It contributes to our close community and especially to Gislaved municipality in this station salé, when they get new local residents. It is really fun and we constantly watch new projects.

Thank you. How much is left of your resale program at 50 million kronor now that you can restart the resale after the quarter report?

It is a high share. We can also find it on our website. Both the number and the value of about 5 million kronor that we have sold before today. So we have left 45 million kronor.

You have solved all obligations during 2023 and beginning of 2024. What was the motive for this decision? You have been affected by financial position.

There we have the foundation in a board decision where it is about and handle risk. So there we have a strategic decision together with the owners, the board, the financiers and the organization to leave the market for a while. It was historically very volatile during this period and we were punished in several ways for having obligations, among other things, on the stock exchange.

It is nice to have a loan agreement of 45% today. It gives us freedom of action. We have the banks with us, as Kristina said. We work with the most big Swedish banks, but also with the small local ones. They are extremely willing to continue to finance our business. It feels great. Thank

you. I think you mentioned that in the presentation. But if you look at the housing portfolio, how does the mix look? How many housing is against commercial housing?

If you look at the housing value, it is about 60-40 commercial housing. If you look at the rental value, it is 2 thirds commercial and 1 third housing. That is about where we want to be with 2 thirds commercial and 1 third modern housing.

Thank you. How do you see the expansion to several cities in Sweden?

I don't know about Sweden, but we have a strategy decision that we should be local. We work in small countries, but coast to coast. This includes Halland and parts of Skåne where we are today. That is the geography that we see as our home market. We are open to new markets there. We guess that it is a relatively new market for us. Where we see a need and where we can get effective management. It is not very far between these places. We work with our own staff and it works best. When we see that we have local management, that is when we are at our best. We are close to the tenants and the project that we are building. We see in front of us that we are still on the market. We are not yet, but when opportunities arise in places where we are not, we look forward to them.

Thank

you. We are working all the time with our portfolio. It is something that the property companies must do. You must not be afraid to sell a property to be able to buy some other or leave a market if it is permanent. We will see activities as a normal part of our business in the future. Both on the purchase and sales side.

Thank you. Finally, you seem to be the CEO on June 1. Maybe some time to ask, but has your first time at Nivica been and what impressions have you received so far?

It has been very exciting and stimulating. It was a start here with the first spate in Gisla ved. It happens that is incredibly much fun in Nivica. We started a project and we have a very good exposure and the net exposure has increased. It has been fun and I am positively surprised by both the property, the style and the situation, but above all the employees, what engagement, what drive and what knowledge there is in the company that has been built over the years. It will be very fun. I am not a burden from Småland itself, but it will be very fun to get to know this landscape. And continue to build Nivica in the future.

Thank you very much for presenting this today and answering a few questions. And thank you to everyone who has watched. I wish you a nice summer.

Thank you from us at Nivica and at Återhörande.

Thank you to everyone who listens.