Prisma Properties AB (publ)

Good morning, everyone, and thank you for joining today's presentation of our Q1 report. We have entered the year with continued strong momentum, maintaining the pace from the final quarter of last year. Our strategy continues to deliver results, and we are growing in both in size and profitability. During the quarter, we passed the 10 billion mark, up from 6.5 when we listed the company in June 24. And we remain on track to reach 16 billion by the end of 28. Let's go through the key highlights. This quarter we have focused on activating our building rights. We have signed several new long lease agreements with leading QSAR tenants in both Sweden and Denmark. with these developments expected to be completed during the year and in 2027. We continue to focus on the remaining building rights in our portfolio, with the ambition that all of them will be activated and generate income before the end of 2028. As for our largest building right in Kungeskurva, the zoning process is underway and we expect it to be finalized in Q1 2027. We aim to communicate our plans and future tenants in the near future. In Finland, we have continued to acquire modern discount retail during the quarter. Since entering the Finnish market, we have completed acquisitions of almost 160 million euro. We will continue to grow through new acquisitions with the target of reaching over 200 million in the coming quarters. focusing primarily on grocery assets while also making progress on our development projects in Sweden and Denmark. This quarter, we've also entered into an agreement to sell our two properties in Norway. And we exited the Norwegian market in early April this year. This was a strategic decision as we continue to focus on Sweden, Denmark and Finland, markets where we see the best opportunities ahead. In Sweden, we were pleased to see our first ICA Maxi Store completed during the quarter. Our second ICA Maxi Store in Mariestad is currently under construction and is scheduled to open in March next year. I'm also pleased to share that our earnings per share have doubled compared with Q1 2025, reflecting strong operational performance and efficient capital allocation. In Q1, we continue to see strong rental income growth, up 33% year over year. Rental income reached 151 million compared to 113 last year. This growth was driven by acquisitions, completed projects and CPI adjusted leases. Net operating income increased by 41%, reaching 132 million, compared to 94 million in Q1 2025. Our profit from property management increased to 69 million, up 52% year over year. Our property yield remained relatively unchanged, but we continue to see increased interest and improved sentiment for our segment. This quarter we also signed several new long lease agreements. Net letting in the quarter amounted to 50 million and Prisma has now delivered positive net letting for 13 consecutive quarters. We have also successfully completed a 250 million bond tap issue. It was a strong interest from credit investors, confirming confidence in Prisma, our business model, and our strategy. In the quarter, there were no major changes in our vault or occupancy rate compared with the previous quarter. And our property management team continued to focus on letting the few remaining vacancies we have in the portfolio. With our latest acquisitions, the share of groceries and daily goods in the portfolio has increased slightly to 45%. Through planned acquisitions and development projects, we expect to continue increasing the share of grocery and daily goods in our portfolio in the coming quarters, with the ambition of exceeding 50%. This quarter, Ike has entered our top 10 list, and we also continue to grow with Rusta, two tenants we aim to expand further with over time. Our walls remain stable this quarter, and our property management team continues to defend and extend our long and stable cash flows by focusing on renegotiating all contracts expiring before the end of 29.

As Fredrik mentioned, we passed the 10 billion mark in Q1. Also noteworthy is that the project investments in Q1 are in line with our target pace of 250 million per quarter. Value changes of 1%, mainly driven by project profits and NOI improvements, as well as a small effect from a slight yield compression. Our Norwegian assets were still in the books on the 31st of March, but as we mentioned, since then, they have been divested.

Currently, we have eight ongoing projects with an expected average Elon cost of 7.5%. This quarter, we have completed three projects. In Mora, we completed our project with Lidl, T-Hansen, Jysk and Blomsterlandet. In Lycksele, we have completed our construction of a building store. And in Haderslev, Denmark, where we have finalized a Netto grocery store and a Sunset Boulevard restaurant. During the quarter, we have started two new projects. In Torsvik, outside Jönköping, we have started the construction of Shop Shop and Burger King. and in Värnamo where we have started construction of a KFC restaurant. Both projects will also include fast charging for electrical vehicles. Our project in Tierp which was scheduled to start in late Q1 has been delayed by a couple of weeks into Q2. The delay is due to a pending building permit which we expect to receive before the end of April. Our project in Tierp is already fully let and we have signed construction contract in place. So we are ready to begin the construction. Here we are planning to extend our existing retail park with grocery and discount retail. One other project that was scheduled to start in Q1 was our battery project in Kungeskurva. This project has been postponed by one quarter due to that we have not yet received notice from the grid owner Vattenfall. We have also added one new project in Steg in Denmark where we are planning to develop a new grocery store scheduled for completion in Q4 26. One project has been brought forward, our QSAR project in Umeå. We now plan to start the construction earlier than expected. Our project in Ronneby, which we plan to start in Q1-27, has been moved forward to Q3-27. This project will be added back to the list once we have more information regarding the timeline of the zoning process. Here we have signed a 10-year lease agreement with a leading grocery chain. We continue ramping up our development activity and expect to add several new projects in the coming quarters.