Swedish Logistic Property AB

Hi everyone and welcome to the presentation of the first quarter of 2026 for SLP. My name is Philip Persson and I'm the CEO of the company and with me I have our acting CFO and board member Tommy Åstrand. We have an agenda to follow for today's presentation and we'll start with highlights from the period followed by a review of the property portfolio and then Tommy will present the financial development before a closing summary. When we look at the period in brief, we can see that we have another strong quarter behind us and that we are once again demonstrating the strength of our business model. We continue to work according to our strategy and deliver results day by day in all areas. We acquire attractive properties, we increase the net operating income, we continue to have a high surplus ratio and our central administration costs remain low despite a larger portfolio. We continue to have low credit margins and we continue to create value for our shareholders, tenants and the society at large. All in all, we are very satisfied and proud of the development of the company. And all this is despite the tough macro environment that has been and continues to be, not at least with the recent escalation of the conflict in the Middle East. However, our results clearly show that the business model works even in these more difficult times. If we look at the rental income, it has increased by 26%, which is of course partly due to the acquisition of properties, but also the daily work within the property management, where we work intensively to implement improvement projects that make our properties more attractive and generate a higher rental income. Profit from property management have increased by 30%, which means that we managed to retain a large part of the rental growth in our results, which shows that we are succeeding with our improvement projects and that we have efficient internal processes and that we have a good dialogue with our five banks. During the quarter, we have taken possession and acquired three properties with a property value of approximately 900 million SEK. Two of the properties are fully leased to DSV and the third has IKEA as a tenant in a long-term agreement of approximately 64,000 square meters and a vacant area of approximately 30,000 square meters. The vacant space will initially affect our overall letting ratio. The loan-to-value ratio is 49.6% at the end of the period, which means that we have a lot of headroom before we reach our long-term risk limitation of maximum 55%. The interest coverage ratio of 3.3% also has a good margin to our risk limitation of 2.5 times. The LTV and the ICR in combination with our strong cash flow give us very good conditions to continue to acquire properties with our existing capital structure.

Briefly about the company.

SLP is a fast growing real estate company focused on acquiring and refining and management high yielding logistic properties with significant refining potential in good locations. The business model is based on us requiring properties with potential and working intensively to realize the potential. which not only makes the properties more attractive but also creates a higher net operating income and thus a higher property value. This means that we can borrow against a new value to free up capital for further acquisitions and refining projects. Another advantage of the model is that sustainability becomes a natural part of our daily work as we improve the properties that go from brown to green assets. Since the company was started about seven years ago, we have built up a portfolio of 130 properties with the total property value of approximately 19.5 billion SEK and a total area of approximately 1.6 million square meters at the end of the period. The location of our properties is of great importance and therefore our properties are located in strategic logistic locations along the major roads and railway junctions and near the cities something that characterizes slp is the unique culture that exists within the company and this is one of the reasons why we have managed to deliver good results time and time again despite the troubled environment the culture is largely based on the co-ownership that exists among our employees at slp It creates a drive and a commitment to do that little extra every day that creates a great value in the long run. It also makes us risk and cost conscious, which is also reflected in our key figures. The demand for logistics space remains high and is confirmed by our occupancy rate, which is a full 96%. The occupancy rate is also confirmation that we are careful and have acquired properties that are attractive to the wider range of tenants, and that we are working intensively to create long-term partnerships with satisfied tenants who stay. During the first quarter, we have managed to maintain our average remaining lease period of seven years, and this has been over six years for a long time. We are actively working on the length of the lease agreements as we want to minimize the risk in the portfolio while facilitating dialogue regarding financing with our banks.

We look at acquisitions, which is an important part of what we do.

We look at properties with development potential in good location so that we can continue to achieve our overall goals. When we evaluate properties, we primarily look at the location and potential, but also the property's characteristics. We of course like stable tenants, but it's more important that the property is attractive in the rental market and appeals to many potential tenants to provide a stable return over time. We also do not focus so much on the initial yield when we make an acquisition, whether or not what we can do with the properties and what value we can create over time through our active management and various development projects. The potential can be found in many different ways, but it's often in the form of high operating costs, vacant space, the possibility of extension and redevelopment, but can also be rental levels below market level that we can renegotiate. During the first quarter we built on the collaboration that began at the end of 2035 through another sale-leaseback deal with DSV. This time too located in good logistic location in Linköping and Örebro with nine years in average lease duration and good opportunities for further refinement. Another sale leaseback deal was made with IKEA when we acquired and took possession of a 94 000 square meters property in Jönköping at the end of the quarter. IKEA rents approximately 65 000 square meters in a 10-year agreement and addition to the potential for example energy projects and extension possibilities. a large part of the potential in these properties in the vacancy of 30 000 square meters with these acquisitions we have acquired three properties that are perfect fit for us they are located in good strategic logistics locations and there is plenty of potential and we get cash flow through long-term agreements with strong tenants since the company was founded we have completed nearly 80 transactions which is on average of almost one transaction per month. Looking ahead, we see a good pipeline of possible acquisitions that together with our financial position give us a good opportunity to continue growing the company. If we look at the property portfolio, we have divided that into two parts. We have management properties, which are properties where we have realized the potential that exists through hard work and which are now fully developed. These properties generate a higher net operating income and have lower vacancies, which in turn provides the opportunity for a higher loan-to-value ratio. It can therefore be said that these help to finance the other part of the portfolio, which is the development properties. The development properties are properties where there is a potential to increase the net operating income by implementing measures that we have already identified prior to the acquisition. uh this can be lower the energy costs in various ways carry out extensions renovations rent out any vacant spaces and in some cases renegotiate rents that are not at market level today about half of the portfolio in terms of area is development properties and the difference in net operating income between the two categories is about 180 sec per square meter This means that all other things being equal we can drive a development of the NOI in this part of the portfolio of about 180 pounds per square meters in net operating income and this is in half the portfolio. Besides the area that is already built we have a lot of building rights in addition These are within properties that already have a building on them. This is not like a land bank without any cash flow. We usually get these building rights for free when we buy properties that are in an older zoning plan. If we look at our larger projects, we have now completed the 38,500 square meter project for speed in Falkenberg, according to plan. As soon as we have received the necessary authority permissions, we will start the project, which involves an extension of a full 23,000 square meters to logistikpartner in Ullrisahamn. It is incredibly good that we, through this, are strengthening our cash flow, and at the same time, as we do the extension, we get a new 10-year lease agreement with them. In addition to that, during the third quarter last year, we signed a 10-year lease agreement for a new construction of approximately 27,000 square meters in Malmö for SOLIX. where we are still awaiting authority decisions. These larger new construction projects and extension projects are of course important, but at least as important are all the smaller projects that we do daily, where we have about 170 projects underway right now. And it's these smaller projects that have largely enabled us to report positive value changes in every quarter since the company was formed. despite the fact that the required yield requirement has increased. We identified these smaller projects already when we evaluate properties for an acquisition, but also in the very active dialogue we have with the tenants. And in many cases, we do the projects together where we create win-win situations. During the period, we have invested approximately 7 million in energy costs, energy projects, and 54 million SEC in other investments, such as smaller extension projects and conversions. If we look at the return on these projects, it's significantly higher than the required yield requirement that we have in the portfolio, which amounts to 5.9%. In the portfolio we now have around 400 leases with tenants operating in many different industries. The main categories are food and beverage and transport. We see a continued strong demand from our tenants and what is driving this is a number of different major trends in society. This is of course due to our changing trading patterns where e-commerce continues to increase both in number of packages and in volume. We as consumers have increased demands for circularity and sustainable transports. And in addition to that, we have the continued unrest in the world with great geopolitical uncertainty, which increases demand as companies source or secure their goods flow by moving production and warehousing closer to the market. and that increased investment in the defense and membership in NATO will mean a need for a logistics base. Our 10 larger tenants account for 38% of our annual rental income, and the remaining lease period for this is a long 9.4 years, which means that a large part of our rental income is secured in long-term agreements with strong tenants. Net rental for the period is 5.7 million crowns, and we have not had any quarter with negative net rental so far, which is really strong considering our high occupancy rate. We are therefore managing to meet terminations and vacancies with new lease agreements and extended agreements with existing tenants. Some good examples of this are the new rental to METS of approximately 19,300 square meters, which was made without the premises even being vacant, and the extension of approximately 23,000 square meters to logistic power. After the end of the period, we also managed to rent out 30 000 square meters to Essity in Falkenberg in an eight-year agreement, also there without the premises having to become vacant. As I mentioned, we have a long remaining lease term of seven years, which is part of our way of working with risk limitation. We would rather see that we get a slightly longer contract than that we get the last krona in rent. Another way to minimize our risk is by having the CPI indexed lease agreements, which means that we are to some extent protected against possible increased inflation and also increased interest rates. being close to our tenants is incredibly incredibly important partly to see how they are doing but also to know what their needs are and so we can be a good partner that makes their everyday life easier in order to create value for us as property owners we must also create value for our tenants we therefore have two commercial managers whose most important task is to meet the tenants And this is how we find the way to our various improvement projects where the outcome is often a win-win situation. This is an important part of how we can continue to deliver positive changes in value quarter after quarter. Our sustainability work continues to develop positively and is a natural part of what we do when we refine the properties. Most buildings are already built so it's incredibly important for the green transition that there are actors like us who refined older properties so that they can become more energy efficient and climate smart over time. We work with sustainability in a structured way from three different perspectives. We have the planet, the people and the business. In all areas, we have set up concrete goals that we follow quarterly, and we continue to constantly take steps towards achieving these goals in line with the many different measures we take within our portfolios. During the period, we also had our climate targets validated by science-based target initiative, which in short means that these are now scientifically verified by a third party. And with that, it's time to look at the economic development, and I leave that to you, Tommy.

Thanks for that, Philip. We continue in 2026 with yet another strong quarter. We have two overarching goals, the same as we have had since the company was founded. Both financial, we will generate an average annual growth in NAV per share of at least 15% and an average annual increase in management profit of at least 15% per share. And we continue to deliver on these goals. And in first quarter 2026, we increased management profit per share by 20% and generated an increase in NAV per share by 3%, which is in line with the yearly goal of 15%. I will get into what is driving the positive development later. We have had an intensive acquisition pace also in the first quarter and acquired for approximately 900 million. We want to continue growing with the right properties and continue to do so in a balanced way. We are and have always been well in line with our financial risk limitations. Among other things, we will have an interest coverage ratio of at least 2.5 times where we are at 3.3 times. for the first quarter and a loan-to-value ratio of no more than 55%, where we will end the first quarter with approximately 49%, meaning that we can continue financing future acquisitions with additional financing of existing properties. SLP has grown strongly throughout its operating years, so we believe that the earning capacity provides a more accurate picture of our development compared to our income statement. Here we see the direct effect of the acquisitions, rentals and projects that have been made instead of the income statement, where it takes a long time before the effect is visible. At the end of 2025, we achieved yet another milestone in SLP, where we passed the billion mark in net operating income in earnings capacity. Of course, this grows with our acquisition projects and leases that we have done the first quarter, ending up to 1.1 billion in NOI. The surplus rate remains strong, which of course is also reflected in the income statement. We have worked hard to build efficient systems and processes. as we run a transaction heavy business where in principle each property is in its own legal entity. We can see that this work has paid off and that our business model has economics of scales in the form of central administration cost increasing by 11 million over the past six years, while net operating income has increased by a little more than 1 billion. Overall, we have had a very sharp increase in earnings capacity and generated a cash flow before tax of almost 750 million. If we turn to the income statement, we of course see the effect of our acquisitions, leasing works and projects. But as I said before, the effect does not come as quickly in the income statement as in the earning capacity. We continue to increase our NOI. NOI for the period amounts to 258 millions compared to 203 millions in the corresponding period last year, an increase of 27%. This is explained by, of course, a larger property portfolio, but also positive effects on net operating income in the form of leasing and cost savings. It is pleasing to be able to state that we continue to create value in our properties. Changes in value amounts to 74 millions, which was positively affected by leasing, contracts, day one effects linked to acquisitions, high yield energy investment. There is also a negative effect of decreasing estimated cbi for 2027 from 1.5 percent in the valuation uh uh compared to to the year end uh and on into one percent in the valuation of the of the end of the first quarter the average required return amounts to 5.9 percent which is unchanged compared to the beginning of the year for the period we report earnings per share of uh 0.82 Swedish krona, where we noted that we made an equity raise in December, increasing the number of shares that has been put into new acquisitions at the end of the quarter. Looking at our balance sheet, we continue to drive value in our investment properties. We are approaching 20 billion in property value. All properties are externally valued by Newsec as usual. During the period, we have acquired properties for around 900 millions. We have invested 130 millions and created value, as I mentioned earlier, of just over 70 million. And with a loan-to-value of 49%, we have big headroom to our financial risk limitations of 55%. We have granted unused credits of 1.2 billions. In summary, we have a strong financial position to continue growing the company with new acquisitions and projects. Regarding our banks, it is the same message as before. We see a very strong interest from our banks to grow with very good terms. We work with five banks, Nordea, SEB, Swedbank, Danske Bank and Sparbanken Skarona. All banks have been involved in the company early on. They understand our business model, like how we create new cash flows and want to continue growing with us. Our margin is still declining and amounts to 1.29% at the end of the period, which is an improvement with three pips since year end. There is a potential for further improvements here as older loans are renegotiated. We are continuously working to extend our capital commitment and hedge our positions. At the end of the period, we had a capital commitment of 1.7 years. This is where we have been in the recent years. We have hedged 60% of our debt and our interest commitment amounts to 1.7 years. As I mentioned earlier, the loan-to-value ratio at the end of the period was just over 49%. So we are comfortable with being able to increase the loan-to-value ratio in the existing portfolio to continue financing our growth yearly. We have a shareholders list that we are very proud of with strong Swedish and foreign institutional investors. We have continuously seen more and more interest from foreign investors, not least in our equity raise that we did in December last year. where we raised 800 million that now has been converted into new acquisitions.

With that said, I will hand over to Finit again for some final words. Many thanks for that, Tommy.

So in summary, we can say that we started 2026 as we ended 2025 at a high pace with good growth in both rental income and in property from property management. and with several strategic acquisitions. The potential for improvement in our portfolio remains high and we have a good pipeline of very interesting acquisitions. Our financial position remains very strong with plenty of acquisition space and good margins to our financial risk limitations. The banks continue to show great interest in financing our growth on favorable terms. And therefore, we see good conditions to continue our profitable growth journey as we look ahead. That was all we had for today. Thank you for listening. If you have any questions, you're welcome to ask them via our info mail, info at slproperty.se. Thank you.