Platzer Fastigheter Holding AB (publ)

Welcome to Platsers Q1 report. My name is Johanna Hultrensch, CEO. I'm here with me...

...Fleder Quirin, CFO.

We'll start by summarizing this quarter. Our strategic investment we made a few years ago in logistics and industry gives us a lot of change and it contributes very well to our business in this quarter. We have made a large expense for Volvo Cars at 15,000 square meters, which is the majority of the 22,000 we have rented out. Industry logistics also contributes greatly to our net expense, which we will come back to a little later. We have a positive net expense of three. This quarter is also the 14th quarter in a row. We have also secured nice project opportunities in our current profile and made them a little more concrete, which we will also come back to in industry logistics. If we look at the business in the rest, we deliver a nice rent increase of 15%. It is an increase of about 47 million per quarter compared to the quarter last year at this time. We also have an increased turnover of 18%. It is of course a result of a hard and hard work from our organization and we are very proud of it. We also have a higher management result despite a higher debt volume and higher rents, so we are doing well here. The capital market has also been up and running for us and has also reached our segment, BBB-. We took the opportunity to take advantage of this situation and have emitted 350 million in a green obligation during the quarter. A little short of the market situation in Gothenburg. We are, as we know, in a low-income country, like the rest of Sweden. Our region has been doing quite well in this financial crisis and probably a little better than the rest of Sweden. Our investment management index is now showing a little more positive and that feels good for the future. We are of course humble, because there are industries that are struggling. Construction and trade are some of them, but there are also industries that are doing very well. We are a city of knowledge and industry, and the manufacturing industry has been doing well. As Sweden's export capital, with the US as the largest export country, 23 went better than the rest of Sweden. The container volumes in Gothenburg increased by 3%, for example. And the city is growing, so it grows regardless of how the economy looks, and we are now over one million people in Greater Gothenburg. The unemployment rate in 2003 was 5.7%, but now it is 5.8%, so it has grown a little. It is a much higher percentage than the rest of the country. The level of support is also weaker than it was before, but it is still positive. In Gothenburg, you can say that you are leading by 24% to .4% when it comes to the most important markets, when it comes to the regional GDP growth. And 25% is expected from the Institute of Connectivity that this will increase to 1.3%. So a little weaker, but still better than many other parts of the country. In the last ten years, we have had a very strong regional growth in the region. We have been at 72%. It is almost at the level of China. The EU is at 17%, so we have a pretty high... We are at a pretty high level. But we must be humble, because the longer the low-con, the more affected our guests are. So we are hopeful, but also humble, because it varies quite a bit between the industries. But what makes Gothenburg stand out a little better than many other parts of Sweden? Something fundamental is happening here right now. We have very large investments going in. I have taken an example here, the Novo battery factory, at 30 billion, where the stock is rising right now. And this factory is right in our stock in Aarundal, Iceland. We have also been appointed to the most attractive city for future workforce through the Talent City Index, which is held every year. And it is quite unusual that a second city, so to speak, goes through the capital, but it is obviously the case that many opportunities are created in our city. We have 34% of our research resources in the highest part of the country, which goes to the Tidhöt-Bors region, and that of course helps in this innovative environment. And we also have a lot of focus on cluster building, where we connect some of the 750 industries represented in the city. And that is magic. And I think this is the reason why we stand out quite strongly. I will now go into the industry logistics segment, our business area, which has contributed very nicely to our result during this first quarter, which I was involved in. The Tidhöt-Bors region tops the list 22 out of 23 years, if you look at the measurement, it started in 2001, when it comes to Sweden's best logistics situation. And of course, with the harbor, the train connection and the airport, it is difficult to beat this situation. And our stock is in the very best position with connection to the harbor. Here we have a map of where it is, for those of you who want a little insight into Gothenburg. It is the gray dots here that are our stock, where we have both existing management facilities and a lot of projects. If we look at the Gothenburg market and industry logistics, we have very low vacancy rates. They are below 3% today in the entire market. And it is a strong demand. And that demand has never really gone out of this market. And now we see that e-handling has picked up a little more. The transaction market has actually been the one that has worked in the real estate industry all along. It was about 25% in the last measurement that we got here at Transaction from JLL. And it is actually the largest transaction volume during the quarter. There is a shortage of demand on land. Or there is a shortage of land, but there is a strong demand, I would say. And that is what we know of and can benefit from. In Gothenburg, industry and logistics are very logical how that market completes our office stock. And today we have 402,000 square meters out of our 960,000 square meters, which is actually industry logistics. It is about 25% of our total value. And in this quarter, industry logistics contributed with 60% of the net profit increase, which is pleasing. I was involved in this with our development opportunities. We have 100,000 square meters that are ready to be built. And of course, it is a fast project that quickly generates a cash flow and a low risk of failure when we start them. So we like to see that we grow in this segment. Let's look at our largest segment and business area, which is the office, which is 75% of our value. So we can summarize that with the fact that the Gothenburg office market is showing a stabilizing. We have had quite high volumes of newly produced offices that have come out in recent years. And we are at a vacancy rate of just under 11% now. It has gone down a bit in the last quarter. What I should also mention is that no transactions have been made at the office since spring 2022. And of course we are all waiting for that to happen. The rents are unchanged or slightly rising. This is the picture I have shown a few times before, but here you can see the volume of offices that came out in 2021-22. We can see that not much has come out in 2023-24, and not even in 2025-26, especially not in the upper interior and in CBD. But of course we have had a flight to quality, which we usually say is a move to the new stock. The good news is that in 2023, when we get out of that, we see that the distribution in the B segment is actually going around the A segment. So now we are starting to see that we get a positive net distribution in the total in the market, even when it comes to our existing stock. Here we see the vacancy rates. Out of seven marketplaces, six marketplaces are on a downward trend, which is great. And of course, it is a growing city. We grow with 11,000 jobs per year. Now we look at the net distribution and go deeper into it. In the previous quarter, most of our distribution was almost exclusively in the management stock at the office. In this quarter, we get our net distribution primarily from industry logistics. Here you can clearly see how they complement each other. This means that despite the large increase from Volvo's VFjord to almost 12 million, which has been known to us for a long time since we actually bought this stock in 2016, we have a positive net distribution in the total of three million SEK and out of that, industry logistics stands for 11 million SEK. We have also made fine re-examinations in the quarter, especially in some larger contracts. The re-examination value is 39 million SEK. This means that we have been able to extend our remaining contract time from 51 months to 53, which is a way to reduce risk for us. Let's see what I'm saying. We have gone from 51 months to 54. I leave it to you, Fredrik. You will talk a little about the drift surplus.

Absolutely. There are a couple of ways to go. Through our rental income and housing costs. We increase our rental income by 54 million compared to the same quarter last year. We have some big contributions to that in industry logistics. As Johanna mentioned, about 60% of the drift surplus comes from the business area. We have acquired three buildings in Söder Logistik Park, which we did in the half-year shift in 2023. Then there is the entrance to Bulykke Logistik Park, where we have completed a project and where our tenants have moved in successfully. Then we have a big difference and the contribution is also the increase in the index, which we have in 2023 compared to 2024. On the cost side, we increase by 7 million, about 8%. That is also what makes our drift surplus increase by 18% when the income increases by only 15%. And the big cost-driven, which is the most weighty, is the surplus drift linked to snow and hail reduction. And then there is the tax, the tax that has increased by something compared to the same quarter last year. We come out with an excess of 77%, which is a strong excess, and that shows a benefit in that we work to maintain our cash flow in the company. We would like to continue with that. And to this end, we have an income margin, where the drift surplus is the income margin. And then we have the higher pink bars, that is the expense. And then, in the same expense, we have the previous year's forward-looking income margin. Of which it is 2024, that is the income margin that we have in the books now. Contracted agreement with interest within six months. It landed on about 1.4 billion in the rolling quarter forward, given that prophecy. And much of that depends on what did not enter in the rolling quarter backward, so there is still a successive effect in the quarter, and then also the income margin that contributes to the forward. But it's almost 200 million in the increase in the drift surplus four quarters forward. There is a great focus on key figures, financial key figures, and the value of the property. It has been generally for a while now in the industry. During the first quarter, the industry tends to be somewhat de-efficient. So we make a very large transition during the fourth quarter, and that's where we make our big benchmark for the year and make a large number of external values. We always make sure to keep in touch with the market and to have relevant input to our internal value. And in our books, this is the internal value that stands. We land on 28.4 billion when we leave last March, and then we have 200 million coming from investments. And then we have negative unrealized value changes that are summed up to 38 million minus. If you separate the assets, then it consists of several factors, and in these factors there are several variables. So it's half the scientific value of the property, which is to stick to when reading newspaper articles and other things, that it requires a nuanced picture. Our nuanced picture right now is that we have 100 million positive from our project development, 100 million negatively linked to vacancies, vacation rentals that affect cash flows in the valuation model negatively, and then we have yield changes that negatively affect about 40 million kronor per quarter. Financing. Here we have, if we are to mention primarily, two key areas that have been very much in focus, and that is the rate of interest and the rate of payment. We have stabilized ourselves now on a rate of interest where we are at 2.1 times the financial net, and that is above our financial goal, which is 2.0 times. Isolated quarter, 2.1, rolling quarter, 2.1, we are at right now. Another key focus driven by the value of the assets and the investment rate is the rate of payment, where we have had a debt increase during the period, and then a value of the property that has had a declining trend linked to the yield, and then we work, of course, in our business, we advise to do so with project development and make good rentals forward-looking. That is what we can influence. We are landing at 50, and that is also in line with our financial goal, where we should not exceed 50 over time. This also means that we can at the moment climb over, but our goal is not to exceed only 50%. During the quarter, we have increased our sustainable financing. We have issued a new green obligation in our own MTN program, as Jan-Olof mentioned, and it is linked to the fact that the markets have returned, the prices have become more attractive. We are a long-term shareholder in the capital market and the MTN market, and we took the opportunity to give out an obligation, and we see it still positive in the market and hope that the margins will come together even more forward. Our loan fallout structure, the majority of our financing is from the banking market, and the balance is about 80-20 distribution between the banking and capital markets. We see that we will be retained over time. Our coming fallout is under good control. We have credit facilities of about 2.3 billion to handle the coming fallout if any market would deviate negatively. But right now, we have positive signals from both banks and the capital market. With that said, we will link the financing to sustainability work.

What we want to lift in sustainability in this quarter is how we have started our recovery hub. We are of course looking for CO2 improvements all the time, and this is one way to do that. We have gone together with other owners to create a recovery hub and be able to reuse our material. We have now started a recovery hub, with 20 social housing units, and 21 social housing units. We have added one new unit during this quarter. And in terms of social sustainability, we have created a development council with the other owners of Medicinaberget to develop that area in a good and inclusive way. And we have also started to come to the final stage of installing this public art, as we can see here in the picture, in our international English school, which we are at the final stage of completing here in the southern part of the city. So it is incredibly nice to have an artist who can help us with this public art. If we look at our focus areas, our area development, I would like to mention the city hall. Here we see our closest icon, Keneum, which was completed a year ago. In this area, we continue to activate our street plan. We have drawn the results, among other things, with Din Veterinär, and we have also started to develop the offer for the garden, which is located right here, where wellness opens in the fall. Gamlestaden, this is the director, as we see in this picture. Gamlestaden is one of our most exciting development areas. We both run an area that includes offices, shops and housing. And right now, the development is going on out of the housing, with the help of JM, and we have started the first phase out of the director, as we can see here in the picture. It is also a part of creating the food and cultural destination that we want to do here. We have opened the Pizzeria Dubbelhakan in the quarter, and soon EGO Gin Destillery and a cocktail bar will open, and they will create a forum design market company with the creation of the flow in this city hall. Very exciting. Lilla Bommen is another area where we have ARI, as we see in the picture. And the same thing there. We work closely with other owners in this area. We have Capio, who is moving in shortly, and also Rangselz. I also want to mention Arendal and Torslanda, as that is our highlight for this report. We have received an OK from the county board for further construction rights of 45,000 square meters, so we can enter the building permit. And we have also made a cut out of our largest property, of 1.6 million square meters, and divided it into 13 different properties. This is to create additional value and work closer to our customers and of course develop each and every one of these properties in a good way. Here we can see a lot of possible buildings in the future. Another area that is priority for us when it comes to area development is Möndal. Möndal is a very nice municipality. For the second year in a row, they won the prize as the annual growth municipality during the 23rd year. And they have also been on the podium several times as the annual super municipality and won the last 21, I think. It is a growing municipality with a very strong labor market and a good economy. It has a strategic position. Our MIMO here, which we will take over from NCC, is preliminary in Q4 this year. It is recommended that we reach an 80% unemployment rate and right now we are at about 60%. In summary, Fredrik, we want to summarize what we think are our strengths in places. We are experts in Gothenburg. This is where we work and this is the market we really know. We focus on the customers and we are very happy when we see that the work is showing in our numbers as it does this quarter. We have a lucrative growth plan that is based on strategic transactions, our project development and our cash flow focus, which is incredibly important to us in the business. We have a diversified portfolio in these two branches, which is industry logistics and our largest segment, office. We have a great group of committed employees who make sure that these deliveries are possible. And we have a stable financing. And with this, we want to open up for questions.

The next question comes from Marcus Henriksson from ABG Sande Akayu. Here you

go. Thank you. Thank you very much. Good morning. I have five questions. You are raising the issue of MIMO. I note that the purchase margin is 20% to 1.8 billion from earlier 1.5. You write that there is a very good increase in the level of rent in Möndal. And I think that's not so much as a profit. So I assume that it's a good sign of contract. Can we get some help? Maybe initial yield? Why is the housing value rising? And then you mentioned 80% of the total. How long has the NCC been on from preliminary employment in Q4? Is it half a year after? Do you have one year after? How does that time period look like when you can potentially withdraw? Thank you.

Part of the increase in the purchase margin is of course that we have received an index in the registered contract that the NCC has signed. So there is a big part in that that explains that the purchase margin also follows. And as I said, there are several conditions in a purchase margin and a shareover margin. And what I think is worth mentioning is that we contribute when the housing value is 80% in the amount. And yes, it's a good sign, I guess. So it's hard to make a prognosis when it happens, but preliminary is the end of the year.

Thank you for the follow-up. The price rose by 20% and the index was 6.5%. So we have another point in the delta. And if it's not out in 24 months, are you out of this business? I can't say exactly how long this is going to be. But after 24 months, I'm out of

this business. The first question, Marcus, if I may. The 1500 has been flat for quite some time. It hasn't taken any early indexes, not 10.85 either. So it has been still and not updated. Now we made an update when we looked at it. We don't have access to it. It's NCC that does the export work. Now we have more justified numbers to present in the report. So that's the question. The export time and the horizon.

I think you should be realistic. I think the export volume will be able to handle this within a reasonable period of time. So with the pace that has been developed lately, I think we will buy this when it's 80% exported. That's how the business looks.

All right. I'll move on to the vacancies. We're announcing that they're decreasing. Citymark, as you referred to, last week we noted rising vacancies from Otrivjultberg on the other side of the river. And Ytterlea, Eriksson, looking for new locations in Gothenburg. I think you're announcing several positive things about why Gothenburg's vacancies are decreasing in a short

time.

But you're announcing that vacancies will decrease in the coming year, what do you see as the main reason?

Let me comment on this increase in vacancies in Lindholm, as you referred to. It's that part of the vacancies, so to speak, when you look at Gothenburg, including CBD and the rest of the city, and Lindholm, it's Lindholm that has a vacancy that's going up compared to how you look at all three of them. There, the analysts do different things, how they package these different markets together. What was the question you had?

The question is that you're writing about your market outlook, so you're referring to Citymark, but you're also writing that places are judging that vacancies will decrease in the coming year, and I see several positive signs on why vacancies might decrease in the coming 10 years. So I just want to see what you see in the market that makes you write out...

Well, my assessment is that when we're a growing city, and when we have fewer projects coming out, it's because as long as our market grows, there will be more questions about the office space. And I'm a bit cautious when I say this, because it's also a balance. If we don't have a low growth rate for three more years, it's not a great growth rate. But there are many positive signs that we're on our way out. And my assessment is that when we look at the analysis and see what's in the pipeline, that the occasional high vacancies we have in the stock are historically high in Gothenburg, it hasn't been there before. And with the growth rate we have in the market, I think it will be a big step down in the coming years.

Great, thank you. Next up is Nettutidning. It's plus three million, but it's minus 21 million in the management facilities. And you may not know it, but it has inflows and outflows. It's five out of two million in the coming vacancies and it's the first one. Can you talk about the bigger outflows and the possible nearer time that these outflows will take place? Of course not all, but can you talk about the bigger parts of this?

The biggest one is the Volvo SVF, which is 12 million out of one. So it's the big one. It's one of the ones that will be outflowed. So it's been known for a long time.

Exactly, and they're out during the year according to a contract. And then we don't have... It's not every April 1st that these outflows happen, but you know that too, it happens successfully over time. But we don't have that data specifically, but we can take it in another forum if it's necessary.

All right. Two more questions. The strong drift and margin was up .5% compared to last year's Q. And you have an improved margin in your exchange capacity above 40 quid, in terms of the sequence. Do you think this is a fairly clean quarter, given the costs, or is it a historically low quarter, given the maintenance and repairs, is it something that sticks out, and then the final question, do you think we could improve your margin this year compared to last year, if we adjust to the electricity support we got last year?

I would say it's a relatively clean quarter, especially now that we have Q3 and Q4 behind us, where we had imbalances in between the two quarters. We have a little higher on the current and half percentage compared to what we usually have, while we have other positive effects. So I would say it's a nice, clean quarter to evaluate us in the future.

Yes, thank you. The last question. Your recognition of many interest companies is still unchanged in terms of finance, but the management result came in at 10 million, and it was 5 million in Q4. How do you think we should think about this post?

Well, it's not always easy to judge, so we should be more careful about it.

We haven't received any recognition during this quarter, but it's a fluctuation. It's not a good recognition.

Exactly. I think we usually have 7 million in some form of internal guidance, plus or minus.

Thank you for your questions.

The next question comes from Emil Ekon from Parépo Security. Here you

go. The project in the project is a project that is currently under development. How do you think about buying it off when it's finished, as you did with the previous project?

We have intended to buy it off when the project is finished. So that's the intention.

Perfect, thank you. How do you think about starting a new project? Logistics seems to be very high after the question.

It's a bit of a jubilant question, Emil. I don't understand the beginning of the question. Can you ask it again?

Absolutely. How do you think about starting a new project? Logistics seems to be very high after the

question. What's very positive about the industry logistics unit is that it's a project that... There's a small risk of failure when you start them, because they're usually very well-defined. And the construction time is fast, so it's quick to get a cash flow in these projects. So we're happy that we have the opportunity to benefit from the questions in this market. So that's... I think that we... Of course, everything is dependent on how the failure goes. But I think we have the opportunity to continue working in this segment.

And to create a good quality... Of

course, it's going to be a profitable project.

Of course. But how do you think about starting something in 2024?

I'll have to take care of that. Can I do that?

I

hope so.

We've had a business deal in the quarter between Bearings, a company in Kappal in Arendal, in your area. There, the value of the company has increased by 13% since it was acquired in the spring of 2022. Do you think that will have a positive effect on your internal values in the second quarter?

Well, actually, industry logistics, as I was saying, has always been a transition market. So we feel that... Transactions are happening all the time in that market. Which is very positive. And there was a very quick yield adjustment in the industry logistics market. So we're happy that this type of business is being done. And of course, all points affect our values as well. Then you have to start from your own stock. And I think that what's important to us is the type of strategic work we're working on. So when we're... When we're cutting down on a larger property and that way we can get rid of the fine property world. And maybe also start more projects in that regard. So, yeah, we're working on that all the time, Emil.

Yes, perfect. One last question, please. You've entered new stocks of about 400 million and about 250 million have been cancelled or sold. Can you say something about the difference in margin between those who entered and those who were cancelled?

No, I don't have that data. Then, to complete the property valuation question, there's two and a half months left before we deliver the next property value, so much is happening. But all property valuation is good because we have evidence in the market where transactions take place, so we can really benchmark against that. It's good industrial logistics. We can see that the market in the stock market will also bear evidence where it is.

Okay, that's all from me. Thank

you, Emil.

Thank you, Emil.

Next question is from Albin Sandberg ofmm RGBA de이트 tickets. Here

you go. Hello. I just wanted to ask if the boss has made a decision on the ens klarst masochism and if he wants to make changes. But perhaps just a bit, so the discussions have been parenthesized through the ongoing internal process. If he wants to decide when he wants to氾 Nothing more can change in our bigger business? Is the yield locked in Iran? Or is there anything we can rely on – 뭐可能 Hilal could be a posterior manufacturing line or are you standar the line has direction?

Our yield has continued to change every quarter The pressure of change decreases the more we should be in the market. One reason we are getting a very small or marginal difference now is that we indicate that we are somewhere in the right level. As I mentioned to Emil earlier, the transactions are marked when they show and bear evidence. That is when we actually know. Before that, it is a assessment with a number of variations that leads to a value of

the property. Very good, thank you very

much. Thank you, Albin.

There are no more questions on the phone right now, so I leave the word to the speakers for any written questions and closing comments.

Then we have no incoming written questions, so we thank the viewers who have followed us to this report presentation. See you again in July.

Yes, we do. Thank you very much.