Stenhus Fastigheter i Norden AB (publ)

Hello and welcome to today's broadcast with Stenius Fastigheter, which will present the report for the fourth quarter of 2025. After the presentation, there will be a Q&A, so if you call in and want to ask a question, press star 9 to raise your hand and then star 6 to unmute yourself when you get the word. It is also good to send questions in the form to the right. And with that said, I will pass over to the word to you.

Thank you very much. Good morning everyone on this fresh morning. My name is Thomas Georg Jadis, one of the heads of the company and CFO in the company. And together with Mikko Nikander, Vice President for the company, we have a presentation of the bookkeeping communique for 2025. We start with some key points in the bookkeeping communique and what has happened. We present an administrative result that has been the highest since we noted 2020 at 413 million over the period and 114 million over the quarter. We have also started to work a little more with Krona. We now own 40% of Krona and this morning, through our company KronaBitcoin, we have placed an offer on other companies. A mandatory offer. We have also listed back the hedge and consolidated it completely in Stenhus. On the financing side, we have an ICR of two and a half times, excluding some of the initial costs that we have had with the resolution of the obligation, as well as that the interest rate is down by 3.8 percent, the total interest rate that we pay. More than interesting is our drop in our own capital, which is up 8.8% for the quarter. Our target is approaching 12%. And last but not least, good news for all shareholders, we have an increase in shares. A proposed increase in shares to 28 euros per share.

Which actually means an increase of 40%. If we look a bit more at Q4, we can see that we had 271 million in rent, which was higher than Q4 last year. We increased the administrative result by 30% to 114 million, just as Thomas just said. We have a value change in the portfolio for the quarter of 30 million. And the profit after the tax in the quarter was summed up to 131 million. During this quarter, we have ended the offer on Bakkaheden. We have listed Bakkaheden and we are ready to take in all of Bakkaheden. We have the administration since January 1st fully out. We have resolved the obligation under Q4, which we said we would do under Q3 at 600 million. And as I said, we have guaranteed new emissions in krona, which has increased our ownership to 39.99%. We will return to krona very soon. After the quarter, as Thomas said, we have formed a joint company called Krona Bidco, which owns 70% of Krona, which means that we have to put a mandatory bid on the company, which we have done today in the morning, with the goal of being able to handle Krona in a good way for both the company and Krona in the future. We have also made a large resale during Q1, so today we own about 6.7% of the company. If we look at the graph on the far right, I would like you to look at the yellow curve. This is what we have delivered for management results per share. We are quite proud and happy about the nice curve that we can present. Today we are at about 32 euros per share in the quarter stand alone. If we look at our property portfolio and what we are talking about in the future, we estimate that we will have almost the same, approximately over a billion in rent. We will land on a net of approximately 820 million, which will lead to an administrative result of approximately 460 million kronor. We have an EPRAN of 17.77 kronor, which means that we are trading at a relatively large discount on the stock market today. Our net LTV is at 53.2 and our ICR is at 2.23, just below our long-term target value of 2.25. We should also note that we have taken into account our solution cost for the obligation of 10.8 million SEK. For that, we are above 2.25. Today we have 138 properties. We have a rental duration of 6.3 years. 13.7 billion in real estate value. Here we promised a year ago that our real estate value would be higher at the beginning of 2025 than it was at the beginning of 2025. We have increased the real estate value by about 300 million. We have done this by selling things that we will not own in the long run and buying things that we will own in the long run. We have a double B rating with NCR and we have an economic output of 94.6%. If you look at our real estate chart, there have not been any major changes since earlier, but it is still Stockholm, Mälardalen and the so-called banana down with the west coast where we have our main stock. I'm not going to touch on this, but you can look at what I just said. Q4 2024, 13.4 million, and today, 13.7. Our long-term goal is to deliver 12% of our revenue on our own capital. We're going to have an LTV that will go under 60%, a net LTV under 55%, and an ICR of 2.25%. If we then talk about our business model, it is very simple. It is cash flow, cash flow, cash flow, which is our core business. We have four business areas to support it. In terms of size, our largest layer is light industry and logistics. And that's exactly what it sounds like. We have trade. With us in trade, it is big box, low price only, with investment in food trade. We have public facilities. It's care, school, care. Nothing else. And the last segment, which is also the smallest, where we have had the biggest challenges, is the office segment. Even if you look at the offices in Stockholm, one office building is our police house in Järfälla. And the other is the municipality house in Tyresö. So we have a very large proportion of our office service guests coming from the public part. But we call it an office because it is a generic office. As an add-on to this, we also work with project development. Project development, for our part, is not that we buy a greenfield and hope for the best, but that we develop our existing properties, develop new buildings, and if we build something new, it should always be rented. A little blue light here. And rented for at least 10 years before we start. ESG, we work primarily with both the social parts, both internally in the company, but we also support a number of businesses outside the company. If we look at the green part, we have chosen to work with Bream Certification. This work is fast-growing. We usually have somewhere between 10 and 15 KKs that we work through to get our green certification. And in the annual certification, you will again be able to see our eminent sustainability certification. If you look at some of the projects that we are working on right now, on the far left is a project in Uppsala. And as you can see on the beautiful yellow sign, we can't show this cauldron, because it is for the Swedish police force that we are building. The construction is actually finished now. We had a move here a few weeks ago, but when we released the report, it was still not finished. The house in the middle is an office building in Södertälje, where we are rebuilding. Partly to the labor union, which moves in during the day, and on the rest area we will start a renovation for Södertälje municipality. The house will be fully rented from and with, well it is fully rented today, but there we also have the tax authority as a tenant. Längst till höger så har vi Tyresö kommunhus. Det är ett projekt som kommer ta rätt lång tid. Vi är mitt uppe i programarbetet och vi räknar nog inte med att det kommer vara byggstartar på rätt lång tid framöver. Där har vi också signat ett 15-årigt hyreskontrakt med Tyresö kommun när det är färdigt. If we look more specifically at the different segments, we can see that for the market value, the largest part of the warehouse industry is about 57%. There, we have an economic sales rate of 95%. If we look at the trade segment, it consists of about 14% of the market value today. Likewise, the sales rate is 95%. The public sector, which stands for about 20%, today has about 90% of the sales rate. Sorry, the industry should be 96%, not 95%, as I said. And on the office side, as I said, we have had some challenges, just like everyone else. During the quarter, we sold a heavy office box in Vänersnipan, because we prepare all our own square meters up and down. and not call it a project property, then that sale has meant that our degree of vacancy at the office has dropped. If we look at our list of tenants, not much has happened. It is about the same tenants as before. But I want to highlight Arriflex System AB. It is the old competitive IAC that has taken over those floors. In connection with the fact that they took over the floors, we have also written a new 15-year rental agreement with this company. This company is owned by Tata Group, one of the world's largest corporate corporations. It's Bilia who is our biggest tenant. Alstom, who is a big tenant with us in Västerås. Number two and number three is Santa Maria. I will name Santa Maria a little short. Santa Maria's property that we have is their distribution warehouse. It does not belong to the spice mix business that they have had in another part of Gothenburg. Which they are currently dismantling. The net rental rate for the whole year is positive. For the quarter it is positive. We had, as you all know, a dip in Q3 when we had a large move. There are no major movements here, but we can also note that almost all of our renegotiated rental agreements are still renegotiated at a somewhat higher rental level than what they had before. A quick look at our type of properties. Up to the left is a typical office property at Stenhus. It is the municipality house in Tyresö. In the middle is a typical car dealer facility. In this case, it is the Bilias facility in Kista Akalla for Mercedes-Benz. Where the largest part of the surface is damage works, tires and everything that has to do with aftermarket. The smaller part is pure car sales space. On the far right you have a typical public property, in this case the Samaritan in Tumba in Botkyrka. The old Tumba hospital and the largest tenant here is Botkyrka Municipality and the next largest is Stockholms Län. Here we have two large older residents, among others. On the left, in the middle, we see our trading place in Norrtälje, where we have tenants such as Billus, Rusta, Normal, Jysk and Blomsterlandet. On this trading place there is also Lidl and a number of our well-known low-price trading places. In the middle, in our special class largest property, there is Letten in Västerås, where among other things Halstom is the largest tenant. To the right is Skiftinge. Here we still have some development projects. We have completed two projects during the year, 2025, and we are looking to use the remaining building rights right now. Down to the left is a typical logistics facility. This is a terminal where goods are just going in and out. In this case, it is located in Tibro and is Sweden's largest furniture carrier, apart from IKEA. In the middle we have Skövde, Personbilen 1. Today we have a confectionery company that both runs manufacturing, storage and distribution. And to the right we have Santa Maria Kåken in Kungsbacka. And as I said earlier, the finished project just recently, Gem & Fix in Skiftinge, which is the latest project we have finished in Skiftinge. We finished, not so long ago, also Blomsterlandet. They are wall to wall. And our big project in Västerås, where we have converted an old shopping center to a pure external trading box with rental services such as Dollar Store, Motornät, Lindex and Dressman.

Over to you, Thomas. Yes, some figures. Part of the results report with our administration result of 114 million. As usual, it is worth noting that our rental income comes from this nice list of rental guests. The one we presented is about 40-45% of the total that comes from them. 30-40%. strong tenants, strong opponents, and basically all of our agreements are linked to COPY. Mera. Vi har femte kvartalet i sträck med positiva värdeförändringar, vilket resulterar i ett bra slutresultat. När man tittar på skatten på året på 42 miljoner ska tilläggas att där finns även en fastighetstransaktion som var medräknad och belastar aktuell skatt med ungefär 8 miljoner. If you look at the EBITDA table on the right, you can see that it is slowly rising due to both some net acquisitions and net deductions. If you look at the next page, you can see our income, which is 461 million, according to our calculations. If you look at our financial statements in the table on the top left, it is at SEK 313 million. It is worth noting that these are all our financial costs in the company. We have no other hybrids or preferential stocks that have a financial cost that does not go via the result calculation. Vi har våra finansiella mål som vi är i god väg att uppnå även när det gäller ICR-en som är 223 på sist och vi ska långsiktigt ligga över 225. Det som är mer intressant är kanske vår avkastning som är uppe i 8,8 och de senaste kvartalen är på väg upp så där målet är 12%. På känslighetsanalys för de som är intresserade kan man också se hur vår intjäningsförmåga kan variera beroende på olika stiboräntor och olika driftnettoförändringar. The interesting thing about the balance sheet is the value of our properties, 13.7 billion. They are valued externally every quarter. We have made a lot of deductions on book value, so we have a good feeling that we have the right value in our books. It is also worth noting that among the 13.7 billion we have almost no building rights value. We have a couple of tens of millions total in building rights. When you look at the financing, the other big numbers are on the right side. Worth noting is that in principle 90% of all financing is bank financing in Swedish banks. 5% is an obligation and 5% on the CET market. Let's look at the next one. Stable net LTV and net LTV throughout the years. And a capital structure that has low refinancing risk. The 911 million that are short today are mainly due to the acquisition of Bakahedden. The property will be repurposed in the long term very soon. So we have very little money that will be refinanced in the short term. It's worth noting that among the 911 million, we also have the CERT program, which has credit facilities that are long behind. So these 911 million are a bit misleading today. Yes. And our nice shareholder list with Stansions Holding, Balder and Öresund at the top of the list. With that said, let's open up for some questions.

Thank you very much for your presentation. Just as you mentioned, we will now open up for some questions. If you have called in and want to ask a question, press star 9 to raise your hand and then star 6 when you receive the word. We will start with a question. What is the main reason for the increase in the administrative results?

It is mainly that the degree of payment has increased. The transactions we have made when we sold two of our project properties, which we actually run costs, we have also switched them to cash flow generating KKs, which makes a big difference in the administrative results. In addition, we also have positive net payment, which also contributes.

Thank you very much for that. Then we move on here and take an inside call, and that is Albin Sandberg from SB1 Markets. Welcome. I'll repeat, you use star 6 to unmute yourself when you get the word, so Albin Sandberg, please go ahead.

Yes, I just had a question about the project, I missed it in some cases. Jag tänker på vad som händer där med Tyra. Det känns som att den skjuts framåt i tiden. Jag bara undrar när ni börjar få ta del av det hyresvärdet.

Tyresö Municipality is already in Kåken today, so it generates the rent value as speaking. When it comes to the project, it is a rather complicated project. We are together with the municipality and their project manager to simply design Kåken in detail. Which I think, and I hope I said it, will probably take another year before we can actually start the project for real. This is a municipality where the municipality aims to move in all of its municipal operations and it is a rather mobile matter, I think that is the right word to say, which means that a number of different parameters go back and forth. So that is why we will not start that project as soon as we thought and we do not know exactly, neither the format nor the scope of the construction we are going to do. With that said, we can say that Tyresö Municipality will hire in the municipality until that day when we start the project. And when the project is finished, there will be a new 15-year lease agreement. So from a property owner's perspective, you can see that it doesn't matter if it takes a little longer. For our part, I think the municipality has more to do with it than us.

Okay, and then I'm just going to ask, you started to pay for utilities last year, and you have actually done a resale as well, and so on. Would you like to take the utilities money and do a resale instead, or do you want to save these two years?

We see it as two important components. Dividing is a company that can give out parts of the profit to its shareholders. We are a real estate company where it is quite easy to see when the price of the share is How it is priced. And instead of just going to real estate acquisitions, we also have the opportunity to buy back our own shares. So you can almost see repurchase as a real estate acquisition. It's very similar. So there are two components that we work with at the same time.

I would like to add that after a lot of hard work, we have managed to get to the successful position that we can work with several action-promoting measures in parallel, both for repurchase and distribution, and also increase our real estate assets, which we are both very happy and proud of, which we also hope that real estate analysts and shareholders think is positive.

Super good, thank you.

Thank you, Albin. Thank you very much for the questions. Let's move on to some more questions that have been sent in to us. Congratulations on a nice report. You have a large cash register. How will you use it? About as we said, I think.

We are in a situation in the first quarter with a fairly large cash flow. This is partly due to the fact that we, after half a year of waiting, opened our chat program in September last year. And that requires certain volumes. So they are not as extremely costly as the normal obligation market. And... We have managed to buy back about 7% of our shares over time. We have also made some acquisitions and can suggest a division. At the same time as the LTV levels and N1 LTV are within the limits we want them to be. It creates only degrees of freedom.

And as we said, we want to work with all these three parts. We want to work with the real estate portfolio, of course invest in our own real estate portfolio. We want to work with distribution and we will continue with repurchase.

At the same time, you should also make sure that your own capital is kept within certain limits, so that you should not have too much of your own capital in the system, then the return is quite bad after a while.

Thank you very much for that. Here comes a double question. How do you assess the transaction market and are there any interesting properties to purchase for Stenhus right now?

If we start with Stenhus, we are interested in increasing our stock. We are quite picky about what we want. To go to the market and buy properties, we know exactly what we want. If we find a property or a property portfolio, we are happy to take it. If we talk about the property market in general, I think it feels quite healthy. There are a lot of proposals out there. The quality of what comes out is essentially better. And a whole lot of transactions are done, partly semi-off-market. You can say that that part of the market is really waking up. according to our commitment to LIV, Q2, Q3, Q4 last year. All the sales we did last year, we did completely off-market. And that is a strength, to be able to find a carrier and approach it in the right way, and then you find each other. That means that there is a certain strength in the transaction market. Then there is certainly also a certain weakness in the transaction market, since we are several real estate companies that deal with quite large discounts. If you do not have access to a sufficient cash, it may be difficult to acquire properties in that way.

Thank you very much for that. Then we move on to the last question here. How do you navigate when it comes to prioritizing between sharing and buying back?

As we mentioned before, we have a share from last year that we have in sight. And we saw the possibility of increasing the increase to 28 euros per share. At the same time, there is the possibility of buying back shares on the market. We have a... It's not easy to buy back shares in a relatively less liquid share than our own. So when the opportunities are given, we're there to buy. So you have to be a little selective there.

Thank you very much. That was all the questions we had today. So thank you very much to Mikael and Thomas for the presentation. Thank you very much to everyone who has watched and asked questions. You can continue on TV today.

Thank you for calling in and listening to us.

Thank you all.