Wallenstam AB (publ)

Hello and welcome to today's webcast with Wallenstam where CFO Susanne Linde will present the report for Q2 2025. After the presentation you will have a Q&A where Hans Wallenstam will also participate. If you call in and want to ask a question during the Q&A, press star 9 to raise your hand and then star 6 to activate your sound. It is also good to enter questions in the form to the right. And with that said, I leave the floor to you.

Thank you very much, I am Susanne Linde here and will present and then Hans will also come. We will present this second quarter and also the first half of 2025 and start with this beautiful property that you see here on the front page. Den ligger mig extra varmt om hjärtat nu eftersom jag blivit fadder för den här fastigheten. Det är någonting som Wallenstam har som en tradition för de anställda som har varit anställda länge, så blir man fadder för ett hus. Nu var det min tur efter 24 år, så det är med stolthet jag är fadder för det här fina huset. Vad har vi då gjort under det här andra kvartalet? We have, among other things, sold the building rights to OBOS in the urban development area Munnycke Fabriker. There we have previously built about 500 apartments and now OBOS will complete this area with 120 housing rights, which we think is good for the area as a whole. We have also repurchased several shares, 4 million shares during the second quarter, a total of 9 million shares during the first half year. We do this because we think it is a discount in our share and think it is good to allocate capital there as well. We do a mix of everything, as we usually say. Vi har också tecknat avtal om ett kvarter i stadsutvecklingsprojektet i Forsåker. Det är i Mundal och det är ett konsortium ihop med andra bolag där planen är att bygga 240 lägenheter. We have also received construction permits for Sergelsgrapan. It is an important milestone for this copper-colored facade that we are going to change this house to. And it has gone relatively quickly. We added the property here at the end of January and now we have received construction permits. But we cannot start the reconstruction before the complaint process has passed. Vi har också fått ytterligare ett pris för den här fina fastighet som ni ser på bilden, Nacka Grace. Den fick Stadsbyggnadsutmärkelsen 2024. Det är Nackaborna själva som har rustat för det här. The interest in this building has been large and we have now also signed an agreement with Folksamgruppen in the days following Q2 on the sale of this property for a property worth 822 million SEK and the removal will take place at the end of October. Yes, what does Wallenstam look like today? For those of you who follow us, it looks like what we have done before. Where half of our rent comes from our homes and the other half from the office. And where the majority comes from, or from commercially, and where the majority is from the office. We have two thirds of the stock in Gothenburg and a third in Stockholm. And if you look at our exit rate, the total exit rate is 96%. And there we have a full exit on our homes and see it still a big demand. We have about 285,000 in our queue. And it's just like we've said a lot that it wants to build in the right location where we feel that we have a demand. Whatever the commercial part, we have 90% exit rate there. We see a continued good demand, especially in our Siberian situation in Gothenburg. But it takes a little longer before you actually make decisions in these troubled times, and we see that too. But we still sign agreements. We are also self-sufficient in renewable energy through our wind power plants, but despite that, we are running towards our houses to make them even more energy efficient. If you look at our energy classes, we see that 63% of our rent value is in energy classes A to C. And it's a little lower or a little higher than the year shift at 62%. And we have also started, as I said last quarter, an energy saving project in Rockstad on our 900 apartments there. And get the energy class up there as well. And it is also better for our climate goal in Skog 2. If we then go over to our result calculation, we have a net of 7%. And it shows that our business and what we can actually influence is going very well. We are good at renting out. We are also good at taking care of our houses and managing them as effectively as possible. We have an excess rate of 76%. But I usually like to go over to this picture to describe what has actually happened. This increase in the total net profit of SEK 75 million will result in SEK 104 million in increased rental income. This corresponds to an increase of 7%. And in the comparable stock, which increases with SEK 38 million, we have an average increase in housing rents with about 4% of the rental deals we did. It was a two-year agreement that we made. where it is the last year now, and if it is commercial, it is an increase of about 1.6%. During the first half of the year, we have a net income of SEK 38 million due to the damage caused by premature displacement. This means that we have a total increase in base income of about 2.5%. Then we have also got a larger in the sense that we have completed our new productions. Our operating costs increase by 8% and that corresponds to 29 million. Partly due to the fact that we have a larger property to manage. In the existing, in these 18, which I have written there as an increase, So you can say that it is partly that we have a little higher interest rate this first half year compared to what we had the first half year last year. But then there are these tax increases that everyone is affected by. When the companies or when consumers of remote heating and water and so on make savings, the taxes are increased instead, which becomes a cost increase for us. But it could have looked worse if we had not made our energy savings. If you just look at the energy cost, it is a saving of about 6 million due to the energy savings we have made. The corresponding figure is also a saving due to lower electricity prices. But in total, an increase of 75 million and a total of almost 1.2 billion. Vi har färdigställt totalt 139 lägenheter under det här kvartalet och de fördelar sig på två projekt. Vi har först i Stockholm i Nacka kommun där vi har vårt stadsutvecklingsprojekt i Älta där vi nu har färdigställt fullt det här kvarteret 1. And then it's both apartments and these commercial areas, and everyone is now rented out. Not really all commercial have moved in now, but everything is fully rented out. We also have this in Farsta in Stockholm, our project here Ädellövet. Where we have moved in 54 apartments during this second quarter, so in total there are 66 of these 172 apartments moved in. So then there are 118 left, if I count correctly, to move in. If we then look at our entire administrative result, it increases by 17% compared to the previous year and ends at 658 million, so it is up by 95 million. The administrative costs have increased in total by 24 million, and this increase is mainly due to IT systems. I mentioned the previous quarter there, but it is worth mentioning again. Due to the fact that we are costing new IT systems now running, before you activate it, but now when it is in the cloud, you are costing those systems. We also have somewhat increased personnel costs and also increased safety costs. Then here in the administrative result, it is also affected by 7 million of a one-time booking we did last year, which we get with us in the administrative result. If we then look at the financial net, there is an improvement of 13% compared to previous years, despite the average debt being 2.7 billion higher than the corresponding period previous years. The average interest rate during the period has been 2.52%, which is 75 points lower compared to previous years. And when we go into the quarter, we have an average interest rate of 2.51%, which is one point higher than the previous quarter. And what is the reason for that? It is above all that we have a higher volume of movable loans now, given that we have raised a little more loans during this quarter. So higher non-rent-safe volumes. And about the interest savings, we have continued these 22 billion in interest swaps, interest derivatives, which we also had last quarter. This means that we have not taken up any new volume, but we have taken up new volume of loans, which now means that 63% of the loan volume is secured. This means an average interest bond of 44 months. And it also means a interest rate for the quarter of 2.7 times. So it is first then in 2026 that we have our first decline of our interest rates. If we then go back to the ordinary result calculation and leave the administrative result, then I have mentioned most of it as But here we see that the administrative costs in total, before we divide into the group, is an increase of 24 million. But I think we go over to the value changes. And what has happened there? In total, for the entire half-year, we have an increase in our value on the management authority of 337 million. And it is primarily an effect of a higher operating net and finished new production. There is no adjustment of direct casting requirements during this half year. What affects negatively and can stick out if you look at the last row, the result after the tax for the quarter, which shows at minus 16, then you can think that we say that everything is going so well and it does, our ongoing business is going very well. What affects the individual quarter, you see there minus 534 in our interest rates, so a negative value. And since The long interest rates have gone down during the quarter. And then there will be a technical loss in the calculations. No cash flow, but our values on our interest rates go down when the interest rates go down. And it affects only 0.5 billion in this individual quarter, with 435 million negative for January to June. In total, in the last row, after tax, from January to June, we will provide 557 million SEK against the previous year's 408 million SEK. If we then move on to our balance sheet, we have a continued stable balance sheet with a solidity of 43% and a loan rate of 48%. We have a total property value of about 69 billion SEK. And the properties that are in operation and generate a cash flow are booked at a value of 64 billion SEK. And if you look at the value that has for ongoing projects and land for future production, it is 5 billion SEK. So they together then become 69. But it is 64 billion SEK that generates a cash flow. As I said, we have not adjusted any direct release requirements during this quarter and not during the previous quarter. This means that we have a continued effective direct release requirement of 4.6% for commercial and 3.6% for housing. If we look at the distribution of the property value, which category our properties belong to, then 56% of the value are housing properties and the rest are commercial properties. Here you can see the table, what has affected our property value, and then you can say that Netto has affected our property value positively with 1.8 billion. Vi har investerat lite drygt 1 miljard, 1 miljard 52 miljoner under det här första halvåret. Det är något lägre mot motsvarande period föregående år. Vi hade ju inga starter under det här kvartalet, vi hade ju det i förra kvartalet. Men då innebär det då i och med de här inflyttningarna att The ongoing production is somewhat lower than the previous quarter, 1177 we had here. Now we have 1038 apartments in ongoing production. The ones we started in Q1 were the study cranes in these 39 apartments and quarter 1 in Kallebeks terraces. And then if we look at our own capital and debt side, I said earlier that we have increased our interest-bearing debts. It is an average of 2.7 billion, but in this quarter we have increased by 400 million. And now the interest-bearing debts increase to 33 billion. Our stock value when we go out lands at 58.30. Och det här var faktiskt allting som jag hade att säga och vi ser ju fram emot den andra halvan med alla de här stabila nyckeltalen som grund. Och nu kommer även Hans med på bild här för att svara på frågor om ni nu har några. Tack!

Tack så mycket för presentationen och precis som du nämnde så är det nu dags för Q&A här. Så om man ringer in och vill ställa en fråga trycker man stjärna 9 för att räcka upp handen och sedan stjärna 6 för att aktivera ljudet när du får ordet. Och vår första frågeställare här idag är Fredrik Stensved från ABG. Varsågod, du har ordet.

Stort tack för det. Hörs jag bra, Susanne? Hans? Ja. Härligt. Ja, första gången fråga på I have a question about Naka Grace that you have announced that you have sold. Can you say something about What is the rent level on that property?

The average rent is 3,4 and the standard rent is 30,50 per square meter.

3400 SEK per square meter. Very good, thank you. And then the last question, it was a bit in the pre-presentation, but the average rent. Existing figures go up from 250 to 251. I also understand that there is a little new debt during the quarter, about 400 million, and that it may come up with a higher interest rate. It feels reasonable. However, I might have thought that the base interest rate change, partly in Q1, maybe with lag, that it will be reset with three months of interest, and the interest rate change here in June, Plus maybe that the marginals in what is considered capital-based are down. Is there anything else that I'm missing here that makes it... You're talking about fixed income, a loan that came under 2025.

We had a fixed rental loan that was paid in the middle of the half-year for 500 million SEK that was paid and it was in a very favorable environment for a couple of years ago and so it was paid, so we have put it in motion.

Okay, so in the 2025 round, as it is interpreted as moving, there will be a fixed income loan at very attractive levels, which will fall now in June?

Yes, in May.

Okay, great. That was it for me. Thank you.

Tack så mycket. Då går vi vidare till nästa frågeställare som är Albin Sandberg från Kepler Kevrö. Varsågod, du har ordet.

Ja, hej Albin här. Jag tänkte också bara följa upp lite på en försäljning i Nacka Grace om hur man ska se på den. Jag förstår att det är ett effektivt objekt, men spelar en så att säga CBD Stockholms investeringsplaner in eller var det en fråga om att nu har ni fått ut så mycket ni kan av det huset eller var det bara tillfället som gavs?

Vi var ju väldigt uppfattade kring det objektet och det var väldigt roligt och sedan så till slut så blev vi ju en väldigt attraktiv nivå och då kände vi ju att då fanns det läge att realisera det.

Ska vi säga, är det någon Obviously there is a tail in the portfolio, or is it from house to house?

No, it's not from house to house. We don't have a tail, it's from house to house. We can do business on most of it, but if we get good business opportunities, we take them. Så det finns inget som liksom är totalhedigt. Det hela är ju att vi köper ju ingenting som inte tillför i de lägena som vi söker.

Ja, just det. Och så hade jag två frågor till. Det var lite på tågen av nyproduktionen där så har ni just färdigställt lite under kvartalet och så har ni ju ett navnål också. Är det... Den projektverksamhet ni har nu i taggande produktion, är det en nivå ni är nöjda med?

Just nu som det har varit några år så är vi nöjda med varje projekt vi startar. Vi känner det är oerhört starkt och tillfredsställande att starta projekt. Det ska vi hoppas att vi kan fortsätta göra under hösten. Så jag har svårt att säga någon exakt nivå. Vi har ju ungefär investerat någonstans tre miljarder per år här, även om lite tyngre åren. Men det är ju en ambition hela tiden, men vi ska ju verkligen sträva efter att starta nya projekt. Ligger vi någonstans 1500 i produktion så är jag jättenöjd.

Ja, bra. My last question was about the resale. There is still a possibility, I think, based on the decision. Do you think you should cancel these shares, or have you got them back to the market?

I don't dare to say the decision of the board, Om du säger att historiskt så har vi stämplat bort 99% av gångerna så det vore inte förvånande om man gjorde det även denna gången.

Ja, men då har vi någonting att gå på där. Det var bra. Tack, det var mina frågor. Tack.

Tack så mycket för frågorna där. Och bara för att repetera, ringer man in och vill ställa en fråga så trycker man stjärna 9 för att räcka upp handen och sedan stjärna 6 för att aktivera ljudet om du får ordet. Och jag tänker att vi ger några sekunder till här och väntar ifall någon vill ställa ytterligare en fråga. Och det har vi. Då ger vi ordet till Lars Norby från SCB. Varsågod.

Hej.

Lars Norby here, SEB. Of course I'll ask a question if we want to continue. I was just thinking about the staggers and the next step after that. What does the plan look like? In terms of size.

As I was saying, we are very happy and very We feel very satisfied that we managed to get building permits for our facade renovation so quickly. I mean, it is very sensitive with building permits in Stockholm's inner city and not least in such a building that is so significant. So now we have got building permits and then we hope and believe that the time to complain will go out here during August. And then the planning is in full swing to do this renovation, and unfortunately, due to the current circumstances, the tenants cannot stay in the house up in the office. We had hoped for that, but the good news is that we will hopefully be able to move back faster, and the timeline will be shorter when we empty the house. Men jag vågar inte utlova några tidpunkter utan vi får faktiskt ta det på ö om på ö ihop med de tillstånd och de möjligheterna som vi har. Men självklart ska vi förhoppningsvis köpa tvåskift och treskift så att omgivningen och renoveringen går snabbt.

Men ytterligare förvärv av någon storlek kommersiellt Stockholm, är det snarare någonting för 2026 än 2025?

Vi kan göra det när som helst, när rätt tillfälle uppstår. Vi kommer ju självklart sträva efter mer kommersiella fastigheter i CBD i Stockholm. Det är ju vår ambition, men vi är ju väldigt glada att vi fick denna starten.

Jättebra, tack så mycket.

Tack så mycket. Tack så mycket. Det var alla frågor vi har fått här idag. Nu lämnar jag ordet till dig Susanne för lite avslutande kommentarer.

Då tackar vi alla er som lyssnade och så önskar vi er en trevlig sommar. Så hörs vi till hösten igen. Tack så mycket.