Swedish Logistic Property AB

Then I would like to welcome you to the presentation for the 20 to 24 years result for Swedish Logistics Property. My name is Tommy Åstrand and I'm the CEO of the company and by my side I have Matilda Olsson who is our CFO. She will present the financial development later in the presentation. We have an agenda. First of all, it's a little bit of highlights from from the period. And then before we deep dive into the property portfolio and of course the financial development of the company. We have had yet another very good quarter behind us and a fantastic 20 to 24. We are very pleased with the development of the company, not least considering the challenging micro environment we are living in with relatively high interest rates, recession and increasing yield requirements. We continue to deliver in the daily work, both within portfolio management, but also within other parts of the company, such as financing and sustainability. We can see that in property costs that in principle are on the same level as of the same period last year, even though we have had even though we have a substantial bigger portfolio now. Central administration is on the same level and we have even lower margins on our bank loans. Our green transition delivers in big increases in certification of our properties from 25% of the portfolio in the beginning of the year to 62% at the end of the quarter and also a big increase in sustainable financing from 53% in the beginning of the year to today's 78%. We increase our rental income by 21% of course partly explained by acquisitions, but also CPI of .5% and of course the daily work within the property management. We increase our profits from property management with 31%. We have managed to keep big parts of the increase in NOI in our result. We have a very stable financial position. Our loan to value is 42% way below our long term level of maximum 55% of course affected of the equity raise we did during the third quarter. We raised 1.1 billion with a premium of 30% to NAV of the share price. The interest was very high from both current and new investors. Not least from foreign investors. We have since then acquired logistic properties with development potential of more than we actually raised in capital. We have a NAV growth with 16% which is even better than our goal of 15% per year. We have a very strong interest coverage ratio of 3.2 times which is an effect of our strong work within property management, good negotiations with our banks and effective processes within the company. We continue to acquire properties with the possibility to create value within. We have taken ownership of 12 properties during the period keeping our pace of one transaction in month in average. We see continued opportunities to grow with new acquisitions of logistic properties with development potential with secured bank financing from our banks and that can be done within our current capital structure. If you then look of the properties in SLP, we have successfully grown the portfolio. We have now 110 properties with a property value of approximately 13.5 billion Swedish kronor. We see a continued big demand for the type of logistic areas that we provide. Our occupancy rate is 97% up 2% units from the beginning of the year. We have a long remaining tenancy period of 6.4 years which of course is good when talking financing with the banks. We deliver on our two overarching goals of growth of NAV per share with 15% and increased result from property management per share with 15% if we take into consideration our new production projects. Matilda will come back to this later in the presentation. An important part of the strategy of the company is acquisitions of logistic properties with development potential. We are not focusing on the day one yield. Instead we are focusing on what we can do with the properties to create value. Meaning filling up existing vacancy, lower energy cost, possibilities for add-on projects in the property and so on. We have continued to do acquisitions during 2024 and have taken possession of three properties during the last quarter and done 11 acquisitions during the period. That means that we are keeping the same pace this year as we have done for the last five years, one transaction a month in average. As I said before, acquisitions of logistic properties with development potential is an important part to fulfil our overarching goals. To try to describe the potential that we have within the portfolio, we have divided our property portfolio into two segments. One property management portfolio, meaning that these properties are fully developed and they are cash cows. They generate a higher NOI and in general a higher loan to value and in some way finance our development properties. If we look at our development properties, these are the properties that we can see that we could continue to add some value. In the form of increasing the NOI through vacancies, energy projects, add-on projects, low existing rents for example. If you look at the differences in the two categories, to the right you can see that there's a difference of 176 Swedish kronor per square meter in higher NOI in the management portfolio than in development portfolio. We have approximately 50% left to develop. I will come back to the projects a little bit later. Then we also have a land bank of building rights, approximately 225 000 square meters. We can build 225 000 square meters new production with an estimated investment cost of 2.5 billions. New building contracts has been something that we have been working a little bit more with the last 18 months than we did from the beginning of the company. We have delivered two new production projects during the last quarter. The third one, a big new construction for our sale of 61 000 square meters moved in on the 20th of January 2025. All of the projects that we are in have a 100% letting rate show. The bigger investments are of course very important for us, but at least as important are all of the minor projects that we do on a daily basis. These are an important explanation to how we can deliver positive value changes in our properties quarter after quarter after quarter. We are very active with our tenants to identify all of the development projects that we can see in the properties as energy investments, conversions, add-on projects and so on. We have invested approximately 80 million in energy projects and approximately 250 million in other investments during 2024. The 250 is affected by quite a few add-on projects which leads to that the number is quite high for 2024. The return on these investments are significantly higher on these than current yield requirements. If we then look at the tenants, we can conclude that we have a broad and strong mix of tenants. They represent various categories, major categories are food, beverage and transportation. We see a continued strong demand from our tenants. We have two commercial managers that on an almost daily basis focus on our tenants regarding investments in energy projects, add-on projects and so forth. As I said before, this is a big part of how we can continue to deliver positive value changes quarter after quarter. We have a strong net rental income in the period of 26 million and 3 million in the last quarter. We have, as I mentioned before, 6.4 years remaining tenants a period which of course extra good when we have the discussions with our banks of financing the properties. We have 100% of the rental contracts linked to KPI, meaning that we have gotten 20% rent increase during the last two years. We continue to develop our sustainability work. This is a natural part of what we do since we develop old logistic properties. During 2024 we have delivered way before scheduled several of our sustainability goals set for 2025. We have reached more than 50% certified properties. We are on 62%. We have more than 70% sustainable financing which was the goal for 2025. We are now up to 78%. And we have also before this reached our goals of charging infrastructure on the properties and installed megawatts of solar cells. We will of course continue to add this onto our project since it's also is driving the NOI of the properties. But we will in a very short time frame come back and communicate new sustainable goals taking aim for 2027. As already stated here we can see that we are way before time scheduled and reached our goals of at least 70% sustainable financing long before time schedule. We are, as I said, on 78% going out of 2024. But we are of course not satisfied with this level and will continue to work with this intensively on a daily basis to get even higher. And with that said I will leave over to you Matilda.

Thank you. We continue to work towards and deliver on our two overarching goals. In 2024 we had a growth in net asset value per share of 16% and a growth in profit from property management per share of 10%. Here you have to bear in mind that the growth in profit from property management is affected by the new share issues that were made in 2023. Where the issue proceeds were mostly used for new construction projects and these are reflected in the profit first in 2025. So in other words there is a lag in profit in relation to the new number of shares. We also continue to stay well within our financial risk limitation. At the end of the year the loan to value ratio was 42% and the equity to asset ratio almost 50%. Our interest coverage ratio for 2024 was 3.2 times. So overall a very stable financial position. This is our earnings ability which is a snapshot on a 12-month basis as of January 1st 2025. The earnings ability increased significantly during the fourth quarter. The increase is driven by the fact that we have acquired and taken possession of three new properties. And that we have had completed two major new construction projects that are now included in the earnings ability. We have also indexed the agreements as of January 1st where the majority of the agreements are indexed based on CPI. Which was .6% for 2025. Both property cost and rental income has also increased due to the updated property tax from 2025. Where we invoice most of the property tax to the tenants. However the earnings ability does not include the profit from the larger ongoing project for Alcel in Hallsberg. The occupancy took place on January 20th where the annual rent amounts to about 48 million. If we look at the income statement. Our rental income for the year amounts to 710 million Swedish kronor. It's an increase of 21% compared to 2023. Our NOI increased by 25% and amounts to 610 million. The increase is due to that we have a larger property portfolio. But also to the development of the properties on a daily basis. The property cost only increases by 1 million year over year despite the significantly larger property portfolio. This is because we are reducing the cost in the existing portfolio through among other things energy projects. In our comparable holdings the NOI increased by 9% compared to 2023. And the large increase is of course related to the CPI adjustment of rents. But it's also linked to lettings and investments in the portfolio. If we look at the profit from property management it increases even more by 31% and amounts to 398 million. The fact that the profit from property management increases more than the rental income and NOI. Is an effect of keeping our administrative cost at the comparable level to last year. Despite growing our operations. The higher financial costs are primarily attributable to new lending. Because we have a larger property portfolio but they are partly offset by a lower average interest rate compared to last year. We continue to deliver positive value changes in the properties. And we have not yet had one single quarter with negative value changes. And this is despite an increase in the yield requirement. For the full year the unrealized value changes amounts to 361 million. Of which 73 million is during the fourth quarter. The positive value changes comes from new leases and renegotiations. It comes from profit in new construction projects, energy saving projects and deductions for deferred tax on our acquisitions. We also have a negative effect during the quarter. As we have changed the inflation assumption for the rental income 2026 from 2% to 1%. The tax expense for the year amounts to 172 million. Of which 9 million is current tax. Corresponding to about 2% of the profit from profit management. At the end of the year we reached a property value of about 13.5 billion. The increase during the year consists of acquisitions of 1.7 billion. Investments in a portfolio of 1.3 billion and the value changes of 360 million. The loan to value amounts to 42% at the end of the period. This is an increase during the fourth quarter. As a result of using our large cash holdings that we had in September. Of just over 1 billion to acquire new properties and investments in the portfolio. At the end of the year the net asset value per share amounts to 29.39 kronor. And this corresponds to an increase over 16% during the year. We continue to work only with secured bank financing with Nordic banks. And we are still very positive to continuing to grow with our banks on attractive terms going forward. During the fourth quarter our average credit margin kept decreasing slightly. This is a result of renegotiation of traditional loans to sustainable loans. As a part of our continued work to energy optimize and environmentally certified properties. The average interest rate at the year end was 3.8%. That is 30 basis points lower than at the beginning of the year. Due to a falling STIBA rate and our lower margins. At the end of the year 76% of the loans of the loan volume was hedged through derivatives. And the fixed interest rate period was 2.7 years. During the fourth quarter in October we signed our first sustainability linked loans. These loans have set goals linked to our sustainability work. SLP then receives a margin adjustment based on how we deliver towards these goals. So if we include the sustainability linked loans to our sustainable financing it amounts to 92%. Our interest bearing liabilities amounts to about 5.9 billion at the end of the year. In addition to this loan volume we have 150 million in cash holdings. And 1.7 billion in granted acquisition and property credits for the existing properties. Part of these credits have been used after the end of the year. As we have made our largest acquisition to date of approximately 1.4 billion. So overall we continue to have a strong financial position. Not least given our relatively low loan to value and the funds generated from the properties. This gives us good opportunities to continue our growth journey. Through investments in the existing portfolio and new acquisitions. Having a quick look at the shareholder list at the year end that we still are very happy about. In 2024 we carried out one new share issue during September. As Tommy mentioned it was great interest from both Swedish and international investors. And we were able to complete the issue at the premium of about 30% compared to the net asset value at the time. And with that I hand over to you again Tommy for a short summary.

Thanks for that Matilda. So to summarize, SLP stands very strong. We have a very good result. We're especially proud that our property costs are on the same amount as last year. Even though we have now a much bigger portfolio to take care of. That shows that the positive NOI effect we have on our daily work and on our investments. We see a high demand for the kind of logistics areas that we had. Which is proven by high and improving economic letting ratio. And a high net rental income. As Matilda said we have a very strong financial position with 42% loan to value. Our banks are wide open and very interested in growing with us. We see positive possibilities to continue to grow within current capital structure with secure bank financing. We are of course very happy to be able to announce after the year end our biggest transaction of 1.4 billion. That was all for us. Please use our info email for questions.