Nivika Fastigheter AB (publ)

Hej och välkomna till dagens FinnWire webcast med Vika Fastigheter. Det var med oss vd Sverker Källegården och CFO Daniel Karlsson. Vi kommer att börja med en presentation följt av Q&A så om ni har några frågor så går det bra att anna formuläret till höger om sändningen. Med det släpper vi ordet till er. Varsågoda!

Thank you for that. Welcome to the presentation of the quarter for the third quarter of 2025. My name is Sverker Kjellgården and I am the CEO of the company Daniel Karlsson. Let's start with some slides about Nivica as a company. We are a small real estate company with the purpose of long-term ownership, managing and developing high-end commercial properties and housing. Vi tror på en lokal närvaro och finns lokalt förankrade i alla våra marknader där vi är efter den västsvenska triangeln och även i Växjö. I Kalmar har vi också personal på plats och den här närheten att det ska skapa och göra oss till en attraktiv, trygg och långsiktig fastighetsägare. Vi har en diversifierad fastighetsportfölj, idag värd 12,7 miljarder, varav 37% består av lätt industri och lager, 9% består av kontor, 8% consists of trade, hotels and restaurants, 7% of public housing and 36% of housing. We have a contract value of approximately 800 million SEK. We own 222 properties. We have a rent of 96% and almost 670,000 square meters to rent. Our real estate portfolio is growing and happily enough, which I am extremely proud of, there is a positive direction on most key figures, if not all. We have a real estate portfolio of 12.7 billion, as I said, a net reward rate of just under 50%. We have a value of 6.4 billion. A 5% drop in our own capital. We have rental revenues for the period of SEK 765 million. And the surplus has increased to 73%. We have three branches within Nyvika that I was going to describe in the following slides. The first branch is our commercial branch, which is our largest. And that is, as I mentioned earlier, mainly light industry and storage. We have two very good examples in the pictures here. The first is Svepack, which is located after E4 in Ljungby. No, the upper picture and the lower one is Götessan Industries, which is located after Riksväg 40 in Ulricehamn. During the quarter, we have acquired three more properties of a total of 7,7200 square meters. A rental value of over 7 million SEK and it adds over 91 million SEK in property value. We have a positive net rental of 8 million SEK. We have an average valuation of 6.7% in the commercial portfolio. An average remaining rental time of 5.4 years. We still see a very good demand for our premises and we can continue to purchase properties for a very good discount. Our own self-storage concept called Mitt Lager is also part of the commercial branch. We have a property value of SEK 7.5 billion, a contract value of SEK 535 million, we have an exit rate of 94% and approximately SEK 520,000 per square meter to rent. We go on and look at our housing. We own about 2,800 apartments today. About half of them are built by ourselves, so they are very modern and green properties. During the period, we have expanded a building right in Jönköping to a value that exceeds the existing value. We have an average valuation of the housing stock at 4.5%. And we have a very good demand for housing in all of our cities. Within the housing sector, we focus on operation optimization and effective management to increase the cost. We have a property value of 4.5 billion SEK. We have a contract value of 279 million SEK. The exchange rate is 99% higher and it is almost 160,000 square meters to rent out. The third leg is our project business, which has been very successful over the years. During this period, we have completed two projects. The first is a new building on Breda Sten in Värnamo, at Rudhäll Industri, which is a Bufab company, and they are grocers for another industry. We have built a new main building for them at almost 2,600 square meters, with a rent value of 2.7 million. And in Habbo, a very prosperous and growing municipality north of Jönköping, we have built a new facility for Hjem & Fix on about 1,100 square meters with a rent value of 1.4 million. We have ongoing buildings in Gislaved and Alvesta that will add up to 40.6 million in rent value and 22,000 square meters in area. This will be completed during Q4 2025 and 2026. After the end of the quarter, we have also started a new construction project for the IT company NetMind in Breda Sten in Värnamo. I will now talk a bit about sustainability. We have had it in focus since Erika started and was founded in 2000. What was good for the tenants and what was good for Nivica was something we invested in, because these are properties in Småländska. Solar energy is an example where solar cells on the roof are very suitable when you have industrial properties, because when the sun shines, the production is full. And then you get direct working electricity right down in the business and we don't have to invest in expensive battery solutions. And more parts of our properties have solar cells and the possibility of electric car charging today. If you look at the stock exchange on noted properties, we place ourselves in the top 10. when you see in absolute numbers how much solar energy we produce. If you look at it in relation to the size of the portfolio, we are on top. We have an energy consumption of an average of 82 kilowatt hours per square meter and we have 43% of our property portfolio is green according to our green framework. which aligns with the EU taxonomy. We have also received our climate targets approved by the Size-Based Target Initiative, according to the new global standards for the construction and housing sector. If you look to the right, you can see our energy class on the properties, which we are extremely proud of. We have a very green portfolio. 56% of the portfolio has energy classes A to C. Only 6% have energy classes F and G. This means that Nivica has no sustainability debt built into our portfolio. It will continue to be a very green and nice portfolio in the future. I'll pass it over to Daniel for some figures.

Thank you. A few highlights and essential events during the third quarter. I'm going to start by talking about our financial goals, which you can find at the top of the slide. During the third quarter, Nyvikas board decided to introduce a new financial goal. That the average tax on your own capital should go up to at least 12% in the long term. At the same time, the previous financial goal was to achieve a property portfolio of at least 15 billion, where at least two-thirds would be commercial properties by the end of 2028. If you look at the decline in this new financial goal, we have reached 7% over the last five-year cycle. If you look at the last 12 months, we have reached 5%. So this is an ambitious and challenging goal, but also a very stimulating goal to work towards and focus the business towards. This change was made in order to further emphasize the focus of Nivica on growth in income and cash flow as well as transfer to our shareholders. Other financial goals. We will achieve an annual growth in the administrative result per share of at least 15%. There we reach 16% over the next 12 months. We also have a net loan rate that will go below 55%. We are just under 50% there, so that is also within the target. And finally, the interest rate, which is supposed to be 2.0 or higher over the next 12 months. And even there we are at our target. For the quarter, We had revenues that rose by 9%, our operating net rose by 11% and our administrative results by 14% year-over-year. We reached an excess rate of 79% in the quarter compared to 78% previous year. We have, as Sverker, been talking about a continued high rate of eviction. We put 96% of the entire stock, 94% commercially, respectively 99% on housing. And during the quarter we have acquired three properties that add up to a property value of 91 million kronor. It is partly a sale-and-lease back-office in Ljungby and then two properties in Varberg, where we also took over the existing self-storage business, which we are continuing under the brand name Nevika Mitt Lager. We have also expanded the building rights for housing in Jönköping to a underlying property value that has exceeded the value of approximately 10%. And as Sverker has mentioned, we have also completed two projects that total over 4 million in rent value. We have also been active in the capital market and made an emission of a non-secured green obligation, 400 million within a frame of 800, with a run time of approximately three years until January 2029. And it was done on a credit spread of 250 points. Which will be compared to our obligation issuance at the end of 2024, where we reached 325 points at the same time. It should also be mentioned that the obligation issuance we did in September was at the lowest credit spread the company has achieved. During this period, we have continued with stock repurchase. We have repurchased stocks for a total of 12 million. And if you look at the current stock repurchase program that has run under Q2 and Q3, we have repurchased stocks for a total of 19 million. We have a reminder from the board to buy back shares up to 100 million before the start of the first quarter of 2026. And these bought back shares have also been used as partial payment for the property acquisitions that we have carried out during the quarter to a rate that exceeds the current rate at respective business occasions. If you look at the first nine months of the year, our revenues have increased by 11%. At the same time, our property-related costs have only increased by 3%, which sums up to an increase in the operating net by 14%. We then reach an excess rate for the first nine months of 74% compared to 72% year-over-year. This effect is both a result of our strategy to grow with highly efficient facilities, but also of course an effect of the running and daily work that we do in our administration, including energy efficiency. The costs for central administration fall, or decrease, by about 7% compared to the previous year, which is also a joy to see. Our financial net has risen to minus 197 million, which is an increase of 19% year-over-year. This means that the debt during the same period has increased by about 25%. In summary, our administrative results are up 14%. We have positive value changes from properties at a total of 63 million, of which 4 million are realized value changes due to the cancellation of building rights in Jönköping. Den orealiserade värdeförändringen motsvarar cirka 0,5% av det viktade fastighetsvärdet för perioden, så det är modesta siffror. We also have value changes from derivatives that load the result with 25 million. It is important to note both when it comes to unrealized value changes in properties and value changes in interest derivatives in that they cause cash flow impact. We summarize the first nine months of the year to a total result of 196 million, which corresponds to approximately 2 kronor per share. We also report an ability to identify. And here I will, for the sake of clarity, say that we report our ability to identify on October 1st, which then includes the properties that have reached the same date. I will also, for the sake of clarity, say that the ability to identify is not a prognosis, but a momentary image based on certain given assumptions. But in terms of our income, we have a revenue of 291 million SEK in 12 months, which is approximately SEK 3 per share. Moving on to financing, at the beginning of the quarter we had interest-bearing debts of SEK 6.8 billion. This is an increase of 7% quarter over quarter and this increase is to the absolute majority due to the mandatory emissions that we carried out in September. The loan is mainly made up of banks with 87%, then bonds with 12% and then the rest of the loan is 1%. 33% of the financing is green. It is made up partly of our two green bonds of 800 million, but also of green bank loans of 1.4 billion. And we continue to work actively to increase the proportion of green loans further. We have also increased our share of interest savings somewhat during the quarter. Today, we have 66% of the portfolio in interest savings, but with a duration of 2.6 years. And interest savings occur mainly through interest swaps, but also to some extent with traditional fixed interest loans. We have an average interest rate at the end of the quarter of 4.2%. It is a decrease year over year, but on the other hand, it is at the same level as at the beginning of Q2. And this can only be commented on that we have had an interest rate drop during the third quarter, which has affected STIBs. But at the same time, we have also issued an obligation that runs with a The average income is higher than the average income. This has counteracted the reduction in the average income. Our net credit rate rose to just under 50%. I would like to comment that we continue to see a very positive financing climate, partly exemplified by the obligation emission that we carried out during the period, but we also see a very large appetite in our banks, including falling credit margins. We had a cash flow of 471 million SEK at the start of the quarter. In addition, we have unused Czech credits, revolving credit facilities and construction credits, which is why the total liquidity rose to almost 1.1 billion SEK. We are reporting our own capital at 5.7 billion SEK, corresponding solidity at 43%. And if you look at our long-term substance value, which is mainly made up of our own capital, but in addition to tax and interest-derivative debt, it amounts to approximately 6.4 billion SEK, correspondingly 67.2 SEK per share. And I can just briefly comment that we have a limited growth in our substance value per share for the quarter, despite the fact that we make a result of 110 million. And this is due to the fact that we have partly loaded our own capital with both the quarter's allocation and the coming two quarter's allocations after the announcement from our reviewers. Yes, then...

To sum up and talk about the current situation and the way forward. We have continued to have a very good activity in the shipping business. We continuously show locations for potential guests and the activity has definitely increased during the quarter. We have the opportunity to acquire properties at attractive drop-off levels. And as Daniel said, we also have the opportunity to maintain very good financing of them. We have continued to grow after Q3, when we have acquired and acquired 12 high-end commercial properties in Varberg, Falkenberg, Kungsbacka and Jönköping. And they will add almost 30 million SEK in rent value and a property value of approximately 450 million SEK. To summarize, all of our key numbers are on the way to the right direction. Vi har momentum inom såväl förvärv som uthyrning. Jag är väldigt stolt över organisationen och vårt sätt att arbeta. Som jag skriver i vd-ordet så ser jag med stor tillförsikt fram emot framtiden. Det var vår presentation, så nu tar vi mer än gärna emot frågor.

Tack så mycket för det. Precis, då öppnar vi upp frågestunden. Om det är så att ni ringer in, And if you want to ask questions, press star 9 to raise your hand and then star 6 when you get the word. It is also good to write a written question via the form. The first person who calls in, whose phone number ends with 2652, please have the word.

So there I hope you have Lars Norberg on SCB here.

Hi Lars! Hi!

Hi! It is not completely unimportant for a company to know that there is a continuous flow with commercial objects. And I interpret it as, I see what you write in the CEO word also, how you comment here on the call, that There are many interesting proposals to evaluate during the autumn. If you give an image of the pipeline, is it about the same as it was a quarter ago or has it improved?

I would say that we have under all that In the past year and a half, we have had a very good pipeline. Then we have had available liquidity that has varied over the period. But as Daniel described, we have good opportunities today. Both cash and revolving credits and we have a very nice pipeline. I'm not going to say that it's gotten better, but we may look at more opportunities simply because we have an available liquidity.

And just a reminder, is there a typical seller? For what reason do they want to sell?

There are actually two typical sellers, we can say. The first is that we make a sale, a leaseback deal with an industrial company that we want to either... working with their balance sheet may need liquid funds to expand their machine park or something like that, who often write a long lease agreement of 10-15 years. That's one seller. The other seller may be a local property company that owns one to five properties that are in a generational shift or who want to do something else and get rid of money, so we buy them off.

Och sen en sista fråga, och det gäller era finansiella mål, som ni nämnde här, ni har ju förändrat det nu under kvartalet då, och plockade bort i samband med det, det målet om att fast portföljen skulle uppnå 15 miljarder i slutet av 28. Nu är inte det något mål längre, men tror ni att ni kommer att Uppnå den nivån vid den tidpunkten i alla fall.

Definitivt.

Okej. Tack. Det var min fråga.

Tackar.

Och då går vi vidare till nästa inringare vars nummer slutar på 7514. Varsågod, du har ordet.

Ena, Viktor, Hakenama från Pareto. Kan ni höra mig?

Hi Victor, how are you?

Great. I will continue with Larsbård, but I will turn to the question regarding acquisitions. I understand that everything you have done has been off-market, but how does the competition look from the purchasing side? And if you notice any development in yield levels, especially in the higher throwing segment?

It's boring to say the same answer there. Of course, we have competition. At the same time, we are a natural target of this type of property in our region. So the more acquisitions we do and the more press releases we send, the more the phone rings. It becomes a natural effect of that. And we are known for being easy to deal with. So we have a very good position on the acquisition market. We also have very good competitors that are also growing, but so far the supply seems to be sufficient for everyone. We have not seen any huge pressures on the yield levels. Possibly that it is going down a little bit on newly built properties, but otherwise I think it has been relatively stable.

We have the advantage that we have Niklas, the founder of the company, left in the business. Highly involved and operational and he is around looking for properties. And as Sverker mentioned earlier, the Lisebäck Affair is a very good example of that. It is this acquisition we did in Ljungby along the E4 here earlier in the beginning of the period. where we are doing a Seine-Lisberg affair with the owner and at the same time write a ten-year lease agreement on a very nice property.

Yes, that sounds good. And then a final question, another question, like if you are looking to sell housing and buy more shares and thus also maybe increase the turnover a little, or do you think that you still want to grow?

Yes, that is how it is. We do not want to shrink the company. At the same time, there is one possibility to do exactly what you say, to sell low-cost properties and buy back shares. At the same time, we are struggling with relatively low trade in our shares, which we are definitely working on increasing. Same thing with the free float. But can we switch low-throwing assets to high-throwing? That's interesting, and it's another way to increase the surplus. So you don't have to use the money to buy back shares. We can also buy other assets if the opportunity arises. We want to be open to everything. I usually say that all our properties are for sale and all are for auction, including our offices. We have to work that way because we are a property company that lives off buying and selling properties and renting out premises.

That sounds good. And again, following up on that, I understand that you are online buyers in the coming years, but do you think that you will sell anything in the coming half year in the administration, so to speak?

It depends on how the market develops. We're not going to sell anything under book value. If the market starts and the transaction market, even on low-cost properties, we'll look at that. I can't promise we'll sell anything. When the market starts, as I usually say, it's a natural part for real estate companies to be on the buyer and seller side. I think we'll see more of that in the future. The high interest rate environment we're in has meant that companies have sold and bought properties. I think it will become a more natural part of all companies' operations in the future.

Great. Those were my questions. Thank you.

And then we move on to the written question that we have received here. The exchange rate for housing is greatly impressive in a situation where other companies are talking about structural vacancies in, for example, Växjö. Is there any risk that even Nivica's housing vacancy will increase in the future, or are you simply more attractive to offer than the large market?

The closer you get to 100%, the harder it is to maintain the degree of exposure. 99% is an extremely good degree of exposure, which I am very proud of. It will probably be difficult to maintain over time, but to be above 95%, which we have done for a long time, I think we will be able to do that. Nevica has always worked actively with its outsourcing. We have not had this situation like other companies that may exist in the biggest cities, that you have been an order recipient, but you have had a vacancy and you have looked at the queue. We are used to working actively with our outsourcing and working hard with it, which also shows in the figures that we can increase our level of outsourcing during a little tougher times, which I am extremely proud of.

Tack för det svaret och med det så rundar vi av dagens frågestund här. Stort tack Sverker och Daniel för er presentation och även svar på alla frågor. Så önskar jag er all lycka till nu framöver.

Tusen tack och välkomna tillbaka igen för bokslutskommunikationen och dragningen av den.