Wallenstam AB (publ)

Welcome to the conference call for the fourth quarter and a summary of 2025 for Wallenstam. During December we vacated the entire Sergelskrapan which we took over in February this year. The only remaining tenants are now on the ground floor since the middle of December. and below street level, where the Space Arena is located. You can see this on the picture. Various types of events have been held here during the year by, for example, Spotify, Annual General Meetings and the Gates Foundation. And it is operated by the Stureplan Group. This is also where we recorded our year-end film for the fourth quarter this year, Me and Hans. To summarize some of the key activities we have carried out as a company during 2025. We have invested a total of 2.2 billion kronor in new construction and redevelopment. We have started 394 apartments and completed 686 apartments. So now we currently have just over 1,000 apartments under construction. The demand for our rental apartments remains strong, which can be seen in the 77,000 new applicants who joined our own housing queue during the year, bringing the total to 330,000 people in our own queue. It has also been an intensive year in terms of transactions, both acquisitions and divestments with a total volume of 5.4 billion kronor. Part of the money has been used to repurchase our discounted share. In total we have repurchased 17 million shares during the year 2025. So now we have 22 million shares. So, what has happened during this fourth and last quarter of the year? We divested our newly produced property Nacka Grace on the 34th October to the Folksam Group and KPA Pension and as I mentioned we continued to repurchase our own shares also during the last quarter. In the fourth quarter we repurchased 3 million shares, which are trading at a discount of approximately 30%. We repurchased shares at an average price, including broker fees, of 45,67 kr per share. Our net asset value as of last December amounts to 62,1 kronor. Here, as usual, is an overview showing our company in summarized key figures. We have 210 investment properties with a value of 64 billion kronor and including ongoing and future projects and land, the total property value amounts to 70 billion kronor. As before, half our rental income comes from residential properties and the other half from commercial properties, where offices account for the largest We continue to have a strong economic occupancy rate of 97% with residential units at 100% and 90% for our total commercial space, where Gothenburg is the largest market at 94% occupancy rate. This reflects a stable demand for our properties In other words, we continue to see solid and consistent demand for our space or premises. In 2025, we developed a climate roadmap that outlines the prioritized actions across all three emission scopes. This is our three climate goals, scope 1, 2 and 3. So, what have we done with the scopes? The first one, we have a minus of 39% for the scope 1 and our key initiatives focused on replacing refrigerants with lower impact alternatives combined with regular inspections and installation of leak detection systems. During the year we experienced fewer leakages which has had a substantial positive effect on our Scope 1 emissions which you can see. Regarding Scope 2 we have minus 45% and the goal is 50%. The reduction in Scope 2 emissions is driven by continuous operational optimization and the results of larger efficiency projects underway. In addition, district heating providers have lowered their emission factors, which further strengthens our Scope 2 performance. In Scope 3, where you find our new construction, we have a minus of 36% and there has been several drivers contributed to the reduction. Our ambition to reduce climate impacts is now firmly embedded from the earlier stages of our development projects. Material selection plays an important role. We have increased evaluating and selecting products enabling more informed and lower emission choices. Concrete is also a key component. This year we have used only Swedish produced concrete resulting in shorter transport distances and thereby reduced emissions. We also prioritize concrete produced with a lower carbon footprint. And as I mentioned on the previous slide, we continue to work actively to reduce the energy consumption across our portfolio. Today, 67% of our properties We also report our EU taxonomy alignment voluntarily. Looking at the share of our revenue that meets the taxonomy criteria, 100% of our wind power revenue is aligned. and 51% of the revenue from our properties is aligned. So in total this results in 53% taxonomy aligned revenues. An improvement of 5 percentage points year on year. Let's move on to the income statement and start with our net operating income which increased by 5% to 2.3 billion. This is a surplus ratio of 76% which is in line with the previous year. Now let's turn to the next slide to look at more details. As mentioned, our net operating income increased by approximately 5%, totaling 112 million. Looking at the drivers behind this development, the new construction and large projects contributed 51 million SEK. As noted earlier, we completed around 686 apartments during the year. Property transactions also had a positive net impact of 4 million compared with last year. This includes our newly constructed property Naka Grace, which was gradually completed towards the end of last year and therefore contributes positively in 2025. In the comparable holdings, net operating income increased by approximately 20 million. The 2025 rent negotiations resulted in an average increase of around 4% for the residential rents and 1.6% for commercial base rents, adding a net 43 million kroner in higher rental income in the comparable holdings. In total, rental income increased by 5% year on year. Operating expenses in the comparable portfolio increased by 24 million, driven mainly by higher repair and maintenance expenses compared with last year, as well as continued tariff increases in areas such as district heating and water. This is a key reason why our energy efficiency efforts are important, both for the environment and for our financial performance. Our energy saving initiatives together with lower electricity prices reduced our electricity costs by approximately 15 million kronor. However, the lower electricity price doesn't impact the group's net result as it is offset by a corresponding decrease in revenue within other operating income from the wind turbines. As communicated in previous quarters we also recognized 38 million kronor in net one-time compensations related to early lease terminations. So all in all we improved our net operating income by 5% compared with the previous year. As mentioned, we completed a total of 686 apartments during the year, all of which contributed positively to our net operating income.

In the fourth quarter alone we completed 64 apartments.

So this is in Ädelövet in Farsta in Stockholm where we completed 64 apartments this quarter. It's located by the lake Dreviken. So now we have 42 apartments remaining to be completed in 2026.