Platzer Fastigheter Holding AB (publ)

I'm Johanna Hultrensch, and with me is my well-organized CFO, Ulrika Dannisson. Welcome! Thank you, it's great to be here. I thought we would start today with an infusion of places. For those of you who don't know us well, I'll say that we only exist in Gothenburg. And if it's good for Gothenburg, it's good for places. This city is in the middle of a strategic crossroads with a transatlantic harbor and with three main cities in three different directions. We are the hub for the industrial transformation that Sweden stands for. and also have a very solid history with industrialization. Today, we actually have more employees in knowledge-related industries than just industry. And our most common occupation in this city is civil engineer. A little bit about places like that. Today, we have a property value of almost 29 billion kronor. And 22 of them consist of offices and seven of industrial logistics. And we think one of our strengths is, of course, to know our market very well and with that also to be able to live close to our customers. So that's our focus. We have a large construction portfolio of 350,000 square meters that we intend to develop over time. So it's a short influx. runt vilka vi är på platser. If we look at the results of this quarter, I would like to summarize it as a very nice result. It is a whole organization that works for an increased net of operations and for an increased administrative result. Our net of operations has increased in the quarter by a whole 8% in the comparable amount. As I said, it is a lot of effort to achieve that. In addition, there are our projects that also deliver. What I am especially happy about is that even though we are in a low-income situation, we have a good rental development. During this quarter, it is 12% and 15% during the whole period. And that is very exciting. We have broken the trend that we have had under many quarters with positive net exposure. It is minus 42 and the largest part of it, 32 million, is due to the decrease in the number of people in healthcare that we have known since the spring of 2022 and that has also been communicated. So for us it is of course not a surprise, but it is also something that makes us want to restore this property and fill it up with other concepts and other tenants in the future. The rental market, if we stop at that, is somewhat watchful from the summer onwards. We notice a little less activity. If there is a follow-up at the office to this weaker conjecture that has held on, or if this is a trend that will continue, we'll have to see. To sum up the period, it looks like this. I'm not going to go into too much detail on this. Fredrik Sjödin has left us, or will leave us, as announced. I have support here from Ulrika who will take over in a moment. Vi har färdigställt två stycken projekt i det här kvartalet inom industrilogistik. Ett projekt på 13 000 kvadratmeter och internationella engelska skolan som ligger i Södra Engården. Ett stort stadsutvecklingsprojekt där vi har varit den drivande parten och utvecklat en stor detaljplan. Det är 2 000 bostäder, arbetsplatser, skola, parkeringshus och väldigt mycket stadsnära city life that we are developing here, and the school is the first with its 900 children who came in here when the fall opened. The market situation in Gothenburg, to go into it a little more in depth, looks like this. We have a normal weak economy in Gothenburg for the third quarter in a row. It is not a purely low-cost conjecture, except in construction, but in the rest, trade has recovered and it is in a normal conjecture, while the growth industry and business-oriented services are in a normal weak conjecture. And Gothenburg has done well in terms of growth, a whole lot better than Sweden in general. We have continued to have the lowest unemployment rate, even if it rises, as in the rest of Sweden. And we have had an growth rate that has fallen almost on Chinese levels, if you remember my previous reports. Of course, we feel that the connection has been weaker for a longer period of time. We do this mainly within the office segment, while industrial logistics continues. We are very happy about that, so it is good to have these two segments. If we look at what drives our conjecture, we have a very strong export history in Gothenburg. We have an export value that is more than double than Sweden in general. The major export products in Sweden are of course vehicles, but also petrochemicals and medicine. All three industries are led by us in Western Sweden. So there are many things to look out for. There are 750 industries that run this economy, and 75% of the local and regional products are run by private businesses. And that's a difference compared to other markets in Sweden, which may have more authorities and that type of business that helps to run. Vi har ju en hamn som går väldigt bra. Den här gången är det de nya rekorden inom importen som har ökat med 5%. Det är ju över 50% av all container-trafik som går till Sverige, som går genom vår hamn. Det sker ju väldigt stora investeringar i den här hamnen. It's an electrification of tanks, it's hydrogen production, it's danger deepening, so big infrastructural investments. And our stock in industrial logistics is in the harbor, so we have a lot of good about it. Vi ser också att vår region satsar väldigt hårt på forskning och utveckling och har det i särklass högsta bidraget från det privata näringslivet när det gäller satsningar inom forskning och utveckling. Just de här faktorerna gör att den här staden klarar sig lite bättre än på andra ställen. Om jag då ska gå in på kontor och den marknad som vi befinner oss i där. So it looks like this, that we have a vacancy rate that is at a little over 11%. It is at the same level as it was a year ago. It has actually gone down somewhat in the last quarter. It is a result of the large office volume that came out on the market in newly produced 2021 and 2022, which we are still working on. But I would also like to mention that, given that we are now having a planned out vacancy, you should also remember that 90,000 square meters have been added, that is 3% of the stock this year, and yet we have a planned out vacancy. This means that the office market and office employment are actually growing, and I think it is important to remember that. We have not had any transactions at all in this market. However, if we go back to the rental market, we see that the rents are stable. They increased at some top levels in central locations. But in general, the rental market seems to be the most stable in Sweden, according to JLL's latest report that came out last week. So it did well. Here we have a picture that shows what the exchange rate looks like in the future. You can also see the high exchange rate that came in 2021-2022. We can also see that the exchange rate in the future is very limited. I mentioned that about 3% has been raised in the past year, but on a normal market, we usually talk about 1.5% being the level that The rate of vacancy is not that high when it comes out so much on the market as it has historically been. But if we look ahead, there are a lot of limitations in how much new production on the office comes out on the market. And that means that in the long run, the rate of vacancy will go down. If we then look at industrial logistics, which is our second leg, then that market looks like this. We have a vacancy rate that is low, it is at 4%. It has been a volume of transactions that is actually good, both in this market in Gothenburg, but also in Sweden. It is estimated that it will be back at levels of about 2015. In Gothenburg, the land is quite limited, which means that the opportunity to get new projects is quite limited for many. We have a nice offer here of 110,000 square meters of buildable land that we can use in our portfolio. The rental levels are also good and constant. The e-commerce is increasing slightly. Networking, which is perhaps the weakest part of our report this quarter. As I mentioned earlier, we have Mölleke Healthcare, which has set up its site and is going to move to Mölndal, to the municipality where we are going to invest in MIMO in the near future. And yes, it's nothing new for us, so to speak, but of course it gives us the opportunity to switch this property to something that can generate a project in the near future. If we look at our customer structure, we have succeeded in our negotiations. We have an average contract length of 4.3 years or 52 months, which is the same as four years ago. This means that we have succeeded in our negotiations, that we can keep this. If we look at the transfer structure, we have quite a few transfers within the nearest year. Most of it is 29 and onwards, so it is also a way to reduce risk. We have also improved our economic growth rate from 92 to 93 percent, which we are happy about. Ulrika, I thought I would hand it over to you now, so you can tell us a little more about the financial development in the isolated quarter. Thank you very much.

I will try my best to present the Q3 and the delivery in a fair way. Platser levererar ett väldigt bra isolerat kvartal och jag kommer fokusera på det isolerade kvartalet för det är ju det som är nytt så att säga. Vi har en tillväxt i driftnätet och förvaltningsresultatet om 21 respektive 35 procent och det är ju otroligt starka siffror. Men då ska vi komma ihåg att för ett år sedan i Q3 så fick vi in about 19 million in costs that would not have been there. This corrected the company in Q4 last year. This means that the second half of the year is justifiable, but we have a gap between the quarters. We should remember that in this analysis, but above all we should remember it when we are in Q4. If you adjust for these 19 million, we have an increase of 13, respectively 19%. That is still very strong. We have come back to how it has managed to be created. The real estate portfolio is up to about 29 billion SEK, as Johanna said, we directly own. It changes quite marginally in the third quarter. We also have capital allocation to Jivo and interest companies of about 660 million SEK. And in them lies a underlying property value of about 3 billion, which has had positive value changes in the third quarter, driven by two things, I would roughly say. It is both project profits and the logistics industry that has improved the cash flow in the other offices. Our credit-related key figures, yes, this strong cash flow makes our financial position improve. We have a debt rate that goes from 2.1 in Q2 to 2.2. We have a debt rate or net debt through EBITDA that drops to 11.4. I actually think that it is the best since the place in the stock market was noted in 2013 and we are now starting to be on quite reasonable and good levels. för det här bolaget. Vi har en belåningsgrad som taktar ner något 49.7% compared to 50% in Q2. But as I said, we also have capital allocations to given interest companies. We also have a budget of about 200 million kronor. Instead, we would place interest-bearing debts in relation to total assets, which may be more justifiable. And then we are down to a loan rate of around 47.6%. So there is actually a 2% difference. But if we focus on how, then I would like to share it in the three business units. We have administration, we have projects and we have transactions. And then there is a number of other people who support this delivery, of course, not least the publishing house. If we start with the administration, we have given an example of the comparable stock, that is, those who have been in the administration for two years. That increases its net profit. The third quarter is isolated at 18 million kronor. That is 8% growth. In that part of the portfolio, it is really strong. We also have the project that contributes even more, with 24 million SEK. Last year, we have a series of completed projects that came in this year. Johanna mentioned two of them this quarter. These two increase the growth rate in Q3. And then we have acquisitions, 17 million plus, and this is where the 19 million that I flagged initially lies in the acquisition of previous years. So it's not plus 17 if you were to adjust, but it would be minus 2. And that means that if you adjust for this, you can say that half of the growth comes from very good work in the administration and half of the growth comes from very good work in the project. If we then go to our valuations, I said that it was a very marginal adjustment. We invested about 200 million kronor this quarter. It is about the same pace as the previous quarter. We wrote down 100 million kronor, which is 0.4%, so there are no dramatic movements. And that is the cash flow driven on the vacancy side. And this means that we have very marginal movements. We are going up with an average yield of 509 against 508, but don't see it as big changes. It's more that we are on this decline margin that makes us tip over. And if you want to keep up with the property, generally speaking, and try to zoom out a little, then it is as if we experience that the yields are stable. We see that there is a lot of capital allocation to the sector, both from the obligation market and also from the stock market. There have been quite a few new emissions since spring in our sector. And of course, all this capital has to come from employment. What it means for the real estate market remains to be seen, but it does not start to be negative. And then we come in on, above all, the strong movements of the real estate market, both this year and with a little perspective on time. We have borrowed a graph from one of our banks that will give an expression for this. I think it is a good reflection. The graph consists of an index of a number of companies in the BBB world. It is a five-year obligation. The average price is now around 140 points. There are of course companies that have both lower and higher prices. And we see that it has moved about 100 points since the change of year in huge movements. We are back on levels that were early in 2022. If we want to stretch out in the direction of the trend, we are actually back already to 2019, that is before Covid. Of course, there have been changes in between, but there are powerful movements, which is positive for us as borrowers. Den korta delen av startmarknaden är också väldigt pigg. Vi har nu ungefär en miljard i utställd volym mot 700 i Q2. Vi printar nu på ungefär 70 punkter för tre månader. Det var 80 punkter i Q2. Det var 85 punkter i årsskiftet. Så även här så är det gynnsamt för oss som behöver låna pengar. If we go to the other important market, the interest market, it has also been beneficial for us borrowers. Short-term, it has fallen due to the actions of the Riksbank by both lowering the interest rate, but also by creating an expectation of further interest adjustments. And you can see the black line, there are a lot of lines in this graph that show the price of the market in the future. Here are some of the banks. The Riksbank has a more cautious view on the timing. Here are also some banks. There is no full consensus on how fast the cuts will come, but there is consensus that they will go down. If you look at the long-term interest rate, which I find interesting, it's a red line with a slightly longer line, which measures out a five-year-old and a ten-year-old, and the pricing of the market here and now, you can actually reflect on the difference between short- and long-term interest rates. Is the gap large enough? Or is the long-term interest rate going up? And the long-term interest rate has actually moved. We have about 235 points in ISH, at least yesterday. And of course, in September, early October, it got a five-year rate of 200 points. And that can be related to this stable development that you think. So of course, it's up to you to take positions if you think you should do that. And we have actually acted in this market. We have extended the duration despite the fact that time has passed during the quarter. This has meant that our average income has decreased by 10 points. We also have a 20-point drawback, based on the fact that Stibor has decreased. We have also done some derivative positions that came into force on the first day of October. If we didn't include them, we would have an average rate of 5 points or something like that. So we have a very good position when we enter Q4. In summary, we have a strengthened financial position, as I have said. Improved interest rate, improved debt rate, improved loan rate. At the same time, we have extended the duration compared to Q2, despite the fact that the time has passed. We have the same capital binding time, despite the fact that the time has passed. So what we have repurchased and what we have added to new has been mitigated by the time factor itself. We have another important key statement, which is the amount of secured financing against the value of the property. According to our rating, it should be over 40, and we are now down to 38 percent. So that is also in the right direction. I would probably like to say that we have a much stronger financial position. And we need that for the coming quarter and for the entry of MIMO, which is actually a fairly large piece of space and which will affect all of our capital and also credit related. And we are committed to having a strong financial position, have a strong balance sheet, maintain our rating, and of course, As the company has previously communicated, we certainly need to mitigate this intake with some strategic real estate sales. We are really waiting for the real estate market in Gothenburg to start.

It was a nice bridge here for MIMO. And to remind you a little bit about what this business looks like, it was built in 2017 in a slightly different market than today. It was part of the Kinéum-affair. We will buy this property from NCC. Preliminary income is Q4, when the property is 80% rented. It's doing well. At the start of this quarter, we had a rate of rent of 70%. The rents were successively increased between 2026 and 2027. And as I said, it was at 80% that seats were added. Möndal is a very exciting city, and the municipality has mentioned Möndal a few times. But as I said, it is here that Mölyke moves, and it is also here that the AstraZeneca and GoCo initiative takes place. In September, after many years of negotiations, we were able to finish the financing of the new railway line between Gothenburg and Borås. We have a station there in Mölndal, which means that the hub, which is today Gothenburg's second largest hub, is even stronger. a stop in Landvetter with the airport. So it feels incredibly positive and makes these 75 meters that we have at the station from this facility even stronger. These track-bound locations are in the long run very positive for the value of the facility, we know. A little bit about what we are focusing on. We are focused on the development of the area. This is one of the areas we have chosen as strategic. Möndal is an area where we want to grow and continue to grow. We have a lot of properties there today. If we then look at the area around Arendal, around the harbor, we have growth potential with 110,000 square meters of building rights that are ready. It has been a very good project to run in this market, because it is a fast project and it quickly creates a cash flow for us. They are also fairly large with some risk, so we can keep going. I think you will see more of this in the near future. When it comes to Lilla Bommen, we have our own headquarters down here. It is an area in Gothenburg that is coming very strongly. It is part of the central city, out of the connection to the central station and the water. So there is no distance at all between. Here we have a building opportunity or an option for one from the city of about 40,000 square meters that we will develop over time when the office market has come back for us. And then we have Gamlestaden, which is a very exciting area. It's the Wagon of Gothenburg. Gamlestaden, or Lödlösa as it was called, was founded 550 years ago. In this area, for many years, we have worked out beautiful worlds with a travel center and with Gamlestadens fabriker, which is a food tech center, but also a destination for food and pleasure. And here we have a project today, a root project. It's very positive to be able to run these root projects, because they also generate a bit of cash flow over time. So we're running the director right now, a remodeling of Bingo Lotto's old premises. So it feels very positive. In the same area we also have Piccadilly, which has just joined its new premises, a major investment in on the whole foodtech industry. It's a part of that, but there's also a lot of reuse in this project, and the offices are nominated for the most beautiful offices in Sweden. So, of course, we're happy to be able to show some of these. Finally, this is what we define as our success factors. We are experts in Gothenburg, we can be close to our customers, extra important in a slightly weaker conjecture. We can understand what they need, we understand what the city needs and in this way we can develop our portfolio. We focus on our customers, and we see the increase in rents, which is 15% in the period, but 12% in the quarter. This is a proof of how our organization really succeeds in this, and I am very proud of that. Our employees are one of our largest sources of income, and they are both committed and very passionate. We have a profitable growth plan that is based on three B's. It is our administration, strategic transactions and our projects. We work with all these three parts and time them in the right market conditions. We have a diversified portfolio between industrial logistics and offices. It is a very good complement to each other in an industry and knowledge city as Gothenburg is. It is very logical and they complement each other in these markets, which we see right now. We have a stable income in this company over time, which we also show in this quarter. I think that is our absolute strongest whisper, as they say in English. And with that, I would like to end the presentation and open up for questions.