Pandox AB (publ)

Thank you very much. Good morning and welcome to this presentation of PANDOC's Q3 Interim Report for 2026.

on a rather gray morning here in Stockholm. I'm here together with Liano, our CEO, and Anne Liljenblom, our CFO. And today we have the pleasure, once again, of having both Ifa Roche, Vice President at STR, and Henrik Karlsson from Benchmarking Alliance with us. EFA and Henrik will provide a shorter hotel market update on Europe and Nordics respectively. And as you know, STR and Men's Marketing 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 as a service to Pandox stakeholders. And IFA and Henrik's presentation will take place after we have completed the formal earnings presentation including the Q&A. So we start with Lia and Anders business update and financial highlights from the quarter followed by the Q&A session. So with that I hand over to Lia.

Thank you Anders and good morning and welcome everyone. Despite continued geopolitical challenges, the hotel market continued to grow during the third quarter. For Pandocs, total revenue and net operating income increased by 15% and 25% respectively, primarily driven by strong performance in the leases business segment, particularly in Sweden, where we saw exceptional growth and a continued contribution from the acquisition of Dalata. Like for like, total revenues and total NOI grew with 4% respectively. Cash earnings per share increased by 31%, while EPRA NAV per share, with a dividend paid in April added back, increased by more than 17% on an annual basis, demonstrating continued value creation for shareholders. Adjusted for preparatory financial cost of 22 million in the comparable quarter, cash earnings increased by 23%. The Dalata properties performed well during the quarter, generating a rental income of 357 million with strong profitability. For the first nine months of the year, rental income from Dalata amounted to 880 million kronor. Today, we also announced the divestment of seven hotel properties in Denmark and Sweden with an underlying property value of approximately 2.1 billion kronor, which is higher than our book values for the properties. The properties have approximately 130 million in yearly net operating income, and the transactions are expected to close in the fourth quarter this year. At the end of the third quarter, our loan-to-value ratio was 52.2% compared to 52.4% at the end of the second quarter of 2026. But adjusted for the announced divestments in Denmark and Sweden, the loan-to-value ratio was 51.2%, one percentage point down. In the beginning of the quarter, six former Revo Hospitality Group hotels in Germany were transferred to own operations. Anneli will provide more details on the effects from this change later in this presentation. 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 12.9 years and good guaranteed minimum rent levels with skilled operators. Including the revenue-based leases with Scandic for the Dallata portfolio, the vault is 17.1 years. Our property portfolio has an average blended valuation yield of 6.39% and a yield spread of close to 220 basis points. We systematically invest in climate change projects in a portfolio with good returns based on SPTI-validated targets. And 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 191 hotel properties with more than 42,000 rooms in 11 countries and 90 cities, and with a property market value of approximately 97 billion krona. We are divided into two mutually supportive and reinforcing business segments, leases and owned operations. Leases, where we own and lease out our hotel properties, stands for 84% of our property market value. In our own operations, we transform and run hotels in properties we own. Own operations make up 16% of our property market value. And 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 networks of brands and partners in the hotel property industry. And this ensures efficient operations and revenue management, which maximize cash flow and property values and a continuous flow of business opportunities. And also a relatively large part of investment in leases is shared with the tenant, which of course lowers our risk. The Dalata properties are performing well. In the third quarter, they generated rental income of 357 million with strong profitability. For the first nine months of the year, rental income from Dalata amounted to 880 million. Assuming that the corresponding lease agreements had been in place during the comparative period, revenue growth for the Dalata portfolio in the third quarter is estimated at 4% in the UK and 1% in Ireland. Year-to-date growth is estimated at 3% in UK and again 1% in Ireland. The performance is in line with our expectation and confirms the quality of the acquired portfolio. The separation of Dallata's business into a property-owning business and a hotel-operating business is progressing well and is expected to be completed during the fourth quarter of 2026. Once the process is completed, Pandux will have an even stronger platform for long-term growth and value creation. In parallel, we have engaged in positive discussions with banks regarding the refinancing of the current acquisition financing for Dalata, replacing it with secured property financing. Indications are that this could be done at a clearly lower credit margin and that we most likely also can increase our liquidity reserve at that point, should be so desired. Here we have a breakdown of the performance in the first nine months of 2026 for a selection of countries, regions and cities versus the first nine months of 2025. We show average daily rate on the vertical axis and occupancy on the horizontal axis. Thus, OREGO is the point corresponding to 2025 on both ADR and occupancy. In the boxes, we indicate how much higher or lower REVPAR is compared with the corresponding period 2025. And the circles indicate the share of PANDOX property market values in each country. Basically, all markets have grown this year in terms of REVPAR. The best performing markets in the period are Sweden, Denmark and the UK. And Belgium shows a slight decline. Eva Roche from SDR and Henry Carlsson from Benchmarking Alliance will shed more light on these underlying trends in the hotel market later in this call. Investments in our standing portfolio is an important part of our business model and of course, capital allocation. At the moment, we have approximately 50 projects planned and ongoing in eight different countries. The total investment volume for this project is approximately 4.1 billion, of which 1.9 billion has already been spent. The stabilized target yield and cost on the total amount is approximately 9.4%. The estimated stabilized NOI represents the additional or say incremental annual NOI generated once these investments have reached the full potential, normally after two to four years. In 2026 and 2027, our planned investments are higher than normal due to three large projects. It's the conversion of Clayton and Andrew Square in Edinburgh, planned completion in first quarter 2027, The extension of Clayton Cardiff Lane in Dublin and the extension of DoubleTriba Brussels City plan to be completed in the second half of 2027. In these projects, we have already invested more than one billion kronor, basically with a zero return so far, since they have yet to be launched commercially. And as a final note, divestments are an important part in driving capital efficiency. The announced divestments in Denmark and Sweden show we are both willing and capable of exploring that when the price is right. And with that, I hand over to Anneli Lindbom, our CFO.