Pandox AB (publ)

Good morning, everyone, and welcome to this presentation of Pandoc's Q1 Interim Report for 2026. I'm here together with Liano, our CEO, and Anneli Lindblom, our CFO. And today, we also have the pleasure of having both Ifa Roche, Vice President at STR, and Henrik Karlsson from Benchmarking Alliance with us. Ifa and Henrik will provide a hotel market update on Europe and Nordics, respectively. And we think that this will be of particular interest considering the current geopolitical situation in the Middle East and elsewhere for that matter. And as you all know by now, STR and Benchmarking Alliance are both leading independent research firms dedicated to the hotel market and the views they express are completely separate from Pandox. And we offer this presentation as a service to Pandox stakeholders. An IFAS and RAS Henrik's presentation will be held after we have completed our former earnings presentation including the Q&A. So with that we start with Annelise and Lia's business update and the financial highlights and followed by the Q&A session. So with that I hand over to Lia.

Thank you Anders and good morning and welcome everyone. The seasonally small first quarter marked a promising start to the year. In our existing portfolio, the positive trend from Q4 last year continued and we report positive like for like growth in both business segments. This was explained by broad based improvements in the European hotel market with both higher occupancy levels and largely stable prices, which signal the hotel market is fundamentally strong. Demand was particularly strong in the meeting segment in selective cities where leisure travel was stable. With the acquired Dalata as the main driver, a reported growth was strong. Dalata is performing according to plan and the legal separation is ongoing. Growth in both business segments was negatively affected by adverse currency effects. In the leases business segment, demand improved, however, with variations between markets. In total, the light for light growth was 2%. The Nordics developed the best with good rent growth in Sweden and Denmark. Finland was stable, but negatively affected by the ongoing renovation of Grand Marina in Helsinki. Growth in the UK picked up while growth in Germany was slightly positive. Like-for-like revenues increased by 3% in owned operations, which together with a positive business mix and higher productivity resulted in a like-for-like increase of 8% in net operating income. For the Group, total revenues increased by 11% and net operating income increased by 25% in the quarter. It's worth mentioning that Dalata is included in our numbers from 7th of November and the first quarter being the first full quarter with Dalata numbers included. Cash earnings per share increased by 12% and includes Egendon Spar's minority interest in BidCo, which is our acquisition vehicle of Dalata. The compensation or say alternative cost for E&OS Bar is set at 8% for the corresponding 1.3 billion SEK investment. And 2026 numbers also include part of 2025. This compensation is treated as a financial cost, is capitalized and is expected to be paid out when Poundox acquires the remaining 8.8% of E&OS Bar's minority interest for 1.3 billion, which we expect within two, three years. Growth in EPRA NRB per share was a solid 14%. We had an active new finance and refinancing quarter of some 12 billion. The average repayment period increased to 2.2 years from 1.9 in the fourth quarter. At the same time, lower credit margins in the refinancing would provide financial savings of approximately 90 million annually. Loan-to-value was 52.3% compared to 52.7% at the end of the fourth quarter. And including the paid dividend in April, the LTV was 53.2%. On this page, we summarize some basic facts on Pandox. We are active in Europe, the world's largest hotel and tourism market with strong structural growth drivers. We only invest in hotel properties and create value through active and engaged ownership. We have long-term revenue-based leases with a vault of 13.5 years and good guaranteed minimum rent levels with skilled operators. And please note that the reported vault is excluding the expected new revenue-based leases with Scandic for the Dallata portfolio and will thus increase after the legal separation is completed. Our property portfolio has an average blended valuation yield of 6.37% and a yield spread of a strong close to 250 basis points. We systematically invest in climate change projects in our portfolio with good returns based on our science-based validated targets. We have strong cash flow and a balanced financial position, which enable us to drive continuous profitable growth through acquisitions of new properties and investments in our existing portfolio over time. We have a strong and well diversified hotel property portfolio consisting of 192 hotel properties with approximately 42,500 rooms in 11 countries and 90 cities, and with a property market value of approximately 93 billion kroner. We are divided into two mutually supportive and reinforcing business segments, leases and owned operations. In leases, where we own and lease out our hotel properties, it stands for 84% of the property market value. In our own operations, we transform and run hotels in properties we own. Own operations make up for some 16% of our property market value. The focus of our portfolio is in strong locations, mainly upper mid-market hotels with mostly domestic demand, which is the backbone of the hotel market, regardless of which phase the hotel market cycle is in. We also have one of the strongest network of brands and partners in the hotel property industry. This ensures efficient operations and revenue management, which maximizes cash flow and property values and a continuous flow of business opportunities. And also a relatively large part of the investment in leases is shared with the tenant, which lowers our risk. Here we have a breakdown of the performance in the first quarter 2026 for a selection of countries, regions and cities versus the first quarter of 2025. We show average daily rate on the vertical axis and occupancy on the horizontal axis. In the boxes, we indicate how much higher or lower RevCar is compared with the corresponding period 2025. As you can see, the majority of cities and countries are in the upper right box, which is the place to be, since it indicates both higher occupancy and higher prices. In terms of red bar, the greatest relative improvements during the period took place in the Nordic markets with Denmark and Copenhagen as the leader. Sweden continued in positive trends and Finland saw a good pickup. Norway, which has been a very strong market in recent years, saw stable red part development on high levels. UK and Ireland noted good growth, and Germany also grew, but at a slower pace. Hannover shows the dependence many German cities have on trade fairs. Hannover Messe, one of the world's largest trade fair, took place in March last year, compared with April this year. If a rush from SDR and Henry Carlson from benchmarking Alliance, we'll talk more about this underlying trends in the hotel market later on this call. So stay tuned for that. At every point in time, we have our projects rolling big and small. At the moment, we have approximately 50 projects planned and ongoing in eight different countries. The projects vary from high yielding investments, like adding more rooms in existing hotels, converting non-yielding spaces into guest rooms, for instance, cabin rooms, or adding more beds into existing rooms. To more bread and butter investments, like cyclical products, uplifts, and room bathroom renovations. In the leases business segment, we share the investment with our channels. Both parties enjoy the upside potential and share the risk. In the owned operation business segment, we take 100% of their investment, have full control, and can benefit in full from the value creation and the cash flow generated by them. On this slide, you can see some examples of our bigger ongoing projects. Every year, we invest more than a billion kronor into our existing portfolio. The Delata portfolio is young and strong. However, with acquisition comes two large and exciting projects. One offers the hotel conversion with 172 rooms in city center Edinburgh and a large extension of 115 rooms in Clayton Cardiff Lane in Dublin. Both are exciting, plus 10% yield on cost projects expected to be finalized in 2026 and 2027. And with that, I hand over to Amelie Lindbom, our CFO.

Thank you, Leah. So good morning, everyone. As Leah said, we have seen positive development in most of our key markets where Sweden, Denmark and UK stand out on the most positive side. Currency had a negative effect on revenue of minus 75 million in the quarter. But to be fair, we also had a positive effect on property market valuations. In the first quarter, total revenue and group net operating income increased by 11 and 25% respectively, driven by acquisitions and overall positive like for like growth. Leases reported growth of 25% in revenue and 26% in net operating income driven by acquisition and positive like for like. Own operations reported lower revenues, negatively affected by two hotels fewer than last year. Firstly, the divestment of Crowne Plaza Antwerp in the beginning of February, and secondly, the reclassification to leases of Noma, Brussels Royal Gallery from the 1st of April. Net operating income increased and was supported by a favorable business mix, good productivity and some elevated cost in a comparable quarter. The positive comparison effect from elevated cost is expected to be eliminated from the second quarter onwards. And as Lea said earlier, we have ejendom sparse minority holding as a financial liability with an interest rate which affects cash earnings. And as I said earlier, currency had a negative impact on earnings, but positive on the property values in the quarter. In the first quarter, 15% of total net operating income and 18% of our hotel properties were derived in SEC. Currency exposures are largely in form of currency translation effects. To reduce the currency exposure for an investment, PAMLOC's aim is to finance the investment in local currency. Equity is normally not hedged as PAMLOC's strategy is to have a long investment perspective. On this slide we show the change in the main valuation parameters for the total property portfolio year to date. The investment properties are recognized as fair value and according to IFRS unrealized changes in value for operating properties are only reported for information purpose and is included in our EFRA NRV. For the period, the total unrealized change in value were a negative 53 million, explained by a positive effect from lower yields, but a negative effect from cash flow. As I said earlier, property values benefited from a deprecation in the Swedish krona towards the end of the quarter. For the income statement, however, the average blended rate was clearly stronger than last year, which had a sizable negative effect. End of period, the average valuation yield for investment properties increased from one basis point to 6.29%. For operating properties, it decreased by seven basis points to 6.78%, explained by the divestment of the Crowne Plaza and Farfan Hotel. The blended yield remained flat at 6.37%. Here we have the average yield, the average interest on debt and EPRNRV per share quarterly. The average interest on debt end of period was stable at 3.9% and the yield spread was intact at around 250 basis points. At the end of the period, EPRNRV reached 232 sec per share with a solid 13.9% growth adjusted for paid dividend in 2022. And our LTV at the end of the quarter amounted to 50.3%, including the A&M Domsparred Minority Holdings, which is reported as a finance liability under IFRS. Including paid dividend in April, LTV is at 53.2% and we are well within our financial policy range on both numbers. The ICR on a rolling 12-month basis was 2.5 times adjusted for preparatory financial cost of 59 million. The ICR was 2.6 times. Cash and credit facilities amounted to 3.1 billion. And on top of that, we have unencumbered assets with a value of some 850 million as an untapped reserve. The trend with good demands from banks and lower credit margins remained intact. We were very active on new financing and refinancing in the quarter. New loans and refining amounted to 12 billion, which together increased the average repayment period to 2.2 years from 1.9 years in the fourth quarter 2025. As Lea said, this will reduce our annual financial costs by 90 million. Our net debt to EBITDA is temporarily elevated as we have the impact from the debt related to the acquisition of Dalata and have yet to benefit from the full EBITDA contribution. At the end of the quarter, we have 9 billion of debt maturing within one year, including the acquisition facilities related to Dalata. Our bank relations are strong across the markets and we have ongoing and positive discussions on future financing and refinancing. And there is a strong appetite among Nordic and international banks to finance our hotel properties. At the moment, we have 55% of the net debt hedged, which is a low level compared to the last few years. And with that, I will hand back to Lia for some final remarks.