Prisma Properties AB (publ)

Good morning everyone and thank you for joining us today. We are pleased to present another quarter of strong operational and financial performance. Prisma continues to deliver according to plan as we execute our strategy. We are growing through acquisitions and creating value through developments while maintaining a portfolio with a very high occupancy with long and stable cash flows. We continue to build one of the strongest and most modern portfolios in the Nordics within our segment. Our portfolio has now reached almost 11 billion and we continue to see attractive opportunities across all our markets. With strong tenant demand and growing project portfolio and a solid financial position, Prisma is well positioned to continue delivering profitable growth. Looking at the highlights of the quarter, this has been another active quarter for Prisma. We have strengthened our position in Finland through additional acquisitions, where we continue to see attractive opportunities within grocery and discount retail. During the quarter, we've also signed an LOI with a tenant for segmented one in Kungiskurva. Segmented One is our largest building right and we look forward to providing more detailed information once the lease agreement is in place. What we can say already is that this project will have a positive impact on both our vault and the share of grocery and daily goods in our portfolio. With an agreement in place in Kungeskurva, we will have activated the majority of our building rights. and we're making good progress on the few remaining ones. And our ambition remains unchanged. All building rights shall generate cash flows before the end of 28. This quarter we completed our exit from the Norwegian market, allowing us to focus entirely on Sweden, Finland and Denmark, where we see the strongest long-term growth opportunities. Development continues to be one of the most important value drivers. During the quarter, we have started projects of almost 300 million, and today we have 10 ongoing development projects. Financially, we have delivered another strong quarter. Rental income increased by 35% to 159 million. Net operating income increased by 40% to 141 million. and profit from property management increased by 46% to 71 million. The growth continues to be driven by acquisitions, completed projects and CPI indexation. Properties remain stable compared with the previous quarter. At the same time, we continue to see strong and increasing investor interest in our segments, supported by recent transactions in the market. Demand from tenants also remained strong. Net letting amounted to 18 million during the quarter, while our occupancy rate remained high at 98.6%. Although WALT declined slightly during the quarter due to calendar effect, it remained strong at 7.7 years. Our announced acquisitions and ongoing projects will have a positive impact on our WALT going forward. This quarter, we further strengthened our acquisitions capacity by issuing a 500 million bond, followed by a 150 million tap issue after the quarter end. I'm happy to share that the investors continue to confirm their confidence in Prisma, our business model, and our strategy. And finally, we launched our first shared buyback program, reflecting our confidence in the company's long-term value creation. One of Prisma's greatest strengths is the inequality of our tenant base. We continue to increase our exposure to the grocery and daily goods segment. And based on announced acquisitions that we have not yet closed, approximately half of our rental income will come from grocery and daily goods. Our 10 largest tenants represent almost 60% of rental income and consist of leading Nordic retailers with strong market positions. Through acquisitions and developments, both Kesko and Axfood are expected to increase their share of rental income in the coming quarters. Perhaps most importantly, around 86% of all leases expires in 2030 or later, providing a very good earnings visibility for many years ahead.

Finland is closing in on Denmark size-wise. and it will pass Denmark in Q3 in terms of property value and Finland is approaching 3 billion including signed projects and acquisitions in the coming quarters. Project investments are now at the level we have targeted with 573 million invested in the first half year and 294 million started during Q2.

Development remains one of Prisma's core strengths. We currently have 10 ongoing development projects with an average expected yield and cost of approximately 7.3%. As these projects are completed over the coming quarters, they will strengthen our vault while contributing to rental income and earnings growth. Development will remain one of Prisma's most important growth engines in the years ahead. This quarter, we have started four projects. In Umeå and Karlskrona, we were developing QSAR. And in Tierp and Uppsala, we were developing grocery and discount retail. We have made some smaller adjustments this quarter. Our battery project in Kungiskurva has been moved to Q3, as we're still waiting for approval from the grid owner Vattenfall. Sandviken has been moved to Q3, Here, we already have a signed lease agreement and a building permit, and construction will now start in August. Our project in Stege, Denmark has been moved to Q4, as we need to wait for the municipality to finalize the access arrangement. Looking ahead, we continue to have a very attractive project pipeline. We will also have many new grocery development projects. During the coming quarters, we expect to start additional projects that will activate our few remaining building rights.