Platzer Fastigheter Holding AB (publ)

I would like to welcome everyone joining the call. My name is Johanna and I will be presenting our third quarter report today together with our CFO, Jakob.

Good morning.

The title of today's presentation is Strong growth in income from property management per share and the high level of business activity. And it captures this quarter well. Our underlying operations continue to perform strongly. We delivered an improved net operating income and strong growth of 13% in income from property management per share. We also continue to sign new lease agreements and make investments that are building our next phase of growth. As I have emphasized before, staying close to our customers is a key priority, as is our ambition to grow within the industrial and logistic segment. During the quarter, we have advanced this ambition through both development projects and the acquisition of a new property. We have stepped up our investment pace with the majority of investments directed to the industrial and logistics segment. I will return to this shortly. At the same time, we are operating in a volatile macroenvironment in which interest rates, inflation and geopolitical conditions are changing rapidly. Long-term interest rates rose during the quarter, driven by not only inflation linked to stronger economic growth, but also by concerns about high levels of debt and fiscal deficits, rising energy prices, supply disruptions and increased investment needs, for example in AI. The impact in terms of increased interest rates has so far been limited on us and our net financial item improved, with a lower closing average interest rate. However, if the higher interest rate levels persist, they will gradually feed through to our financial costs. Jakob will return to this later. We therefore remain very humble about the outlook and consistency in how we act. The national economic outlook has improved and the National Institute of Economic Research expects the Swedish economy to grow strongly in 2026 and emerge from the downturn. All the higher inflation interest rates are expected to slow growth slightly in 2027. The Gothenburg region is now at the upper end of a normal economic cycle. It's supported by strong household trade and recovery in industry and manufacturing. This is somewhat reflected in a higher activity in the Gothenburg leasing market. Industrial and logistic properties continue to perform well, while corporate search and premises in the office market are more willing to make decisions than they were a year ago, although competition remains intense. At Platzer we signed a large number of medium size and smaller leases this quarter, resulting in one of our highest level of newly signed leases during the third quarter in five years. However, we also received more notices of lease termination during the quarter and the net letting therefore amounted to minus 9 million Swedish crowns. So let us look at the figures for the quarter. Overall, the quarter shows strong underlying performance. Rental income increased by 4% and the net operating income by 6%. It's driven by both acquisitions and growth in the underlying operations. In the like-for-like portfolio, the net operating income increased by 3%. The surplus ratio, which reflects the efficiency of our property management operations, improved to 80% from 79% in the previous year. Income from property management increased by 10%, corresponding to a growth of 13% per share. At the same time, we continue to deliver stable net financial items despite a slightly higher debt volume and volatility in the interest rate market. And Jakob will return to this and provide a little more detail on this topic. Let us take a closer look at our customers. Leasing activity and net letting. New letting activity remains strong. During the quarter we signed a number of medium-sized and smaller leases with a combined annual rental value of 36 million SEK. I will return shortly to the development in the new lettings and what it tells us about the market. Net letting in Q3 amounted to minus 9 million SEK. and that is both in our wholly owned portfolio and including associated companies. This was mainly due to a higher volume of terminations amounting to minus 35 million Swedish crowns following two quarters with historically low least terminating levels. And we recognize this pattern with higher termination volumes in the third quarter from the past three years. At the same time, the net letting volume for the quarter were clearly stronger than Q3 in 2024 and in Q3 2025. The terminations this quarter were concentrated to several office leases, primarily at Biotech Center at Medicinaberget. In our associated companies, new lettings and terminations offset each other. We have also been able to accommodate several tenant locations within our portfolio for tenants whose needs have changed. These leases represent an annual rental value of 9 million. Looking at the year to date, the picture remains positive. Human relative, the net lettings amount to 45 million Swedish kronor, including associated companies and 42 million Swedish kronor in the whole loan portfolio. As I mentioned, new letting activity remains strong. During the quarter we signed new leases with an annual rental value of 26 million Swedish kronor in the wholly owned portfolio. That is the highest level since 2021. Including our associated companies, new lettings amounted to 34 million Swedish kronor. This shows that the market and our ability to meet tenant demand and close deals is moving in the right direction. All the filling our vacancies still remain our highest priority and will do so going forward. Success requires focused efforts across the organization. Our strength lies in being local, staying close to our customers and acting quickly. At the same time, we remain very humble in an environment where conditions can change rapidly and therefore keep our full focus on what we can influence. One of the larger leases that we signed during the quarter was the one with Ecomera, which is leasing 2,600 square meters at headquarters Gamlestaden. These premises are located in the same property that Möllike Healthcare vacated last summer, and the premises are now approaching 50% occupancy. Let me summarize our net letting. New letting activity remains strong and is at the highest level in five years. At the same time, the volume of terminations increased following the historically low levels recorded in the two first quarters of the year. This is the main reason why net lettings in Q3 were negative. And if we're looking ahead, NCC has verbally indicated that they intend to leave Kineum for Park Central. It's their own project and this represents 17 million in lease value. But no formal notice has been given yet to us and therefore it's not included in the report of net lettings for this quarter. We expect it to come in in Q4. We also expect forthcoming termination from Ramble as I have told you before and this is also not included in the quarterly outcome. Looking at the year to date, the picture remains positive with net lettings of 45 million Swedish crown. Everything being equal, net lettings should remain positive even if the amount determination totalling minus 66 million are received during Q4. Our priority is therefore clear, it is to remain close to our customers and work actively to retain them. We track this through our retention rate which now stands at 91% compared with 83% in Q3 last year, which is very positive of course. So let us look at rental development from renegotiations. This is the Swedish Migration Agency and it is an important example how our active customer engagement recently completed this lease renegotiation with the Swedish Migration Agency at Livered. This lease has been extended by 15 years and also included an additional 1500 square meters of space. The deal provides us with a stable long-term cash flow and an attractive return. Overall, the Swedish Migration Agency annual rental value in the property increased from 32 to 34 million plus additional rent relating to tenant-specific investments of approximately 250 million Swedish crowns in total. The agreement entails a total investment of capex of approximately 365 million. As this is a large lease, it affects the average rental growth from lease renegotiations in the quarter, which amounted to minus 8%. For the year to date, however, the rental growth remains positive in both the office and industry and logistics segment, and it is now at plus 3%. 43 million Swedish crowns in annual rent, At the same time, our economic occupancy rate has improved during the year from 90.4% in Q1 to 91.1% in Q3. This slide shows our 10 largest tenants across our portfolio of more than 720 leases. Together they amount for 32% of the total contract value. Our tenants represent a broad range of operations and provide exposure to several different sectors including hotels, public authorities, industry and offices of course. This diversification contributes to resilience and to stability in our rental income. Our average remaining lease term is four years, and that is the same level as last year. We have accelerated our investment pace. During the quarter, we invested 670 million Swedish kronor, with the majority allocated to industrial and logistics. This image to the left shows the building site of Projekt Rigg in Arendal, 10,400 square meters, with Assa Abloy as a tenant. The project is progressing according to plan. Move-in will begin in the spring and rental payment will start 1st of April. On the 1st of July, we also took possession of Sörrid 815, a property of almost 30,000 square meter with speed as tenant. This is the final project in Sörrid Logistics Park, which we developed together with Katina and Bokasjö. The underlying property value amounted to 570 million and in connection with taking position we received a dividend of 108 million from the joint venture. The combined transaction with the port of Gothenburg is also progressing according to plan. We are here a net seller of 684 million Swedish kronor. And to recap, we are selling nine office buildings as well as kai and water areas while we are acquiring 24,000 square meters of modern logistics space with Schenker as a tenant. The necessary municipal decisions are progressing. The City Council decision is expected in December 2026 and the transaction is expected to be completed in the first quarter of 2027. Our industrial and logistic portfolio is located next to the port of Gothenburg, which continues to strengthen its position as the largest port in the Nordic region, handling 57% of all Sweden's container traffic. It is a vital engine for Sweden's trade and industry. This is also why Arendal is one of Sweden's most strategic locations for industrial and logistic properties and where we own substantial assets. We now take the next step through Arendal 5.0, our long-term development plan to grow in line with the needs of future industrial and logistics. In our next phase of growth, we plan to develop 200,000 square meters of new industrial and logistics space. This represents approximately 2 billion Swedish crowns in project development investments on land that we already own and within the existing detailed development plan. Over the next seven years, we intend to develop this area, which was launched at the beginning of this quarter. So a little bit about the economic cycle in Gothenburg. The region is now at a normal level with trade and manufacturing acting as clear drivers. Manufacturing has recovered after a slow start to the year with higher production and growing optimism ahead of the fourth quarter. Large employers as SKF, AB Volvo, Saab, Essity are expecting to perform stronger, while Volvo Cars has announced saving packages due to declined sales in China. The service sector is cautiously positive and expects demand to increase. Employment has grown for 14 consecutive months and unemployment is declining and the labour market continues to strengthen gradually. The Swedish property transaction market has developed strongly during the year with transaction volumes up approximately 48% compared to the corresponding period 2025. Residential properties have led the development, followed by industrial and logistics properties at 20% and offices at just under 16%. The Stockholm region accounts to approximately 38% of the transaction volume compared to around 11% for Gothenburg. Activity in the Swedish logistic property market is already higher than during the full year of 23 or 24. The market continues to perform strongly with solid demand from both tenants and investors and a slight positive rental growth. Prime yields are around 4.8% while long-term demand continues to be driven by e-commerce, the industrial transition and the need for modern logistic locations. The interest is strongest in modern sustainability-certified properties on Hisingen, in Mölleke Lammeter area and in Borås Viared. Turning to Gothenburg office market, activity is clearly higher than it was a year ago. According to JLL, new lettings by the Swedish Police Authority. Prior rentals remain stable, around 4,200 kr per m2, while super prime offices are achieving levels up to 6,000. At the same time, competition remains intense and the vacancy rate is around 14-50% following the large volume of new office space. added in the early 2020s. Demand is clearly strong for modern urban spaces with good public transport, while peripheral location or older buildings continue to face greater challenges. This trend is also reflected in leasing activity. 60% of this year's take-up has been located to central Gothenburg. The current development pipeline amounts to 120,000 square meters but no produce has been completed or started during this quarter. In the CBD area around 60,000 square meters is under construction with completion planned for 2027. This is keeping the supply elevated in this area where the vacancy rate is also the highest, just over 15%. The three ongoing CBD projects are now approximately 60% let. It's improved from last quarter when it was 41% let. Vacancy rate for individual projects are also moving in the right direction. CHI 16 is more than 70% let while just over half of the space at Park Central has been leased. At present, no new product starts unknown for 27. This means that new supply will be constrained, which should support gradual reduction in vacancy rates over time. And with that forward-looking perspective, I will hand over to you, Jakob.