Wihlborgs Fastigheter AB (publ)

Welcome to the presentation of Bitwise Q1 23. You all know that we love stability and that we will do everything we can to avoid drama. We know that we in these times must work even harder in our core business to offset higher financial costs. And it's a privilege to work hard in a company that continues to deliver new records for earnings and constantly continues to develop the business bit by bit, day after day. So we work hard and we love our cash flow. Let's go to our report. And a summary of Q1. We have record high rental income, plus 22%, operating surplus plus 20%, positive net letting, increased occupancy rate, higher financial costs. We continue with a stable balance sheet, access to liquid funds, and by that we can also continue to invest for the future. And the results for the first quarter. Rental income increased, as mentioned, by 22% to £971 million. The operating surplus increased by 20% to £667 million. And income from property management decreased by 2% to £457 million. The result for the period amounts to £255 million, which corresponds to 0.83 3D krona per share. EFRA NRV increased to 92.08 per share, plus 7% adjusted for paid dividend. And a comparison of the rental income between Q1 2022 and Q1 2023. We have acquisition contributed plus 47 million, currency effects plus 12 million, indexation plus 76 million, supplementary billing increased by 29 million and other increase from complemented projects, new leases and reconnotations plus 12 million. The canteens in Denmark were outsourced from the 1st of March. That will lower our income, but also our costs. We have signed new leases for the last quarter of 77 million and the positive net letting for the quarter is 6 million. Rather a high activity than the opposite, which is a good thing. We see examples of new leases with BTG and Klaravik in Lund, and also companies that have decided to be more efficient, like Ericsson, also in Lund, where we now have a longer lease for the largest area and a termination of 1,000 square meters. Good for us all to know what applies going forward, and really good that they will stay with us for several years to come. We also know that a number of terminations are from customers that just want to make some changes. And I'm sure that some of them will sign new leases with us again. If I see any kind of trend in demands, so it's for more high quality, a bit of efficiency and no trend that clients are leaving us. Here are some of our new tenants that we have signed during Q1. As usual, it's a mix of different segments. The largest leases is with governmental tenants, but important also with Renta and Rolco in Helsingborg, where we will build new premises for them. Here we have the net letting in a historical perspective. Letting in light green, termination in light blue, and dark blue stacks. are the net letting. Now 32 positive quarters in a row and only one quarter with a negative number for over 14 years. We will do everything we can to continue like this, but let's keep in mind that a quarter is quite a short period. And here is the net letting summarized for a rolling 12-month period. And let's keep in mind that all of the positive net letting does not yet show in our performance. This is our future income. A list of our 10 largest tenants in alphabetic order. Trygg Hansa is new on the list. All these tenants are strong customers and they contribute with 20% of our rental income. Seven out of 10 are governmental tenants, and the rental income from public tenants in total is 24%, and they contribute to long-term stability in our cash flow. Rental value as of 1st of April is 4,191,000,000 per year, and the rental income is 3,860,000,000, plus 21.8%. A good part is, of course, indexation, but the rest of it is a good signal of growth. Partly a result of our successful project portfolio, but also being close to the market, knowing our tenants and also willing to make room for their growth and demands for upgrading their workspace. And looking for like-for-like figures, we can see that rental value is up plus 10.9% and rental income is up 12.9%. So rental income again beats our ambition to exceed index by at least a percentage point. A part in the strong figure for rental income like-for-like is higher occupancy by 1.7%. Also a very good number. The value of the portfolio has developed, as you can see on this slide, since 2005, without raising any new capital and lately not with any help from lower yields. Look at the change in market value of our properties. We started the year with 55 billion 179 million in accordance with our external valuation, which once a year values 100% of the stock at the same time. That was in Q4. as every year. We have acquisitions of 20 million, invested 391 million, valuation amounts to minus 28 million, and together we count through translation of 139 million, that's summarized to 55,701,000,000 Swedish kronor. No larger changes in market factors that affect the valuation. We started to raise the valuation yield in Q2 last year and continued in Q3 and Q4. We have had some product gains and, of course, a positive impact from new leases. If we take a look into our portfolio, we can see some figures about ongoing business right now. The occupancy rate is up to 94%, excluding projects and land, and with an operating surplus of 2,968,000,000, that gives a running yield of 5.6%. Total value of the portfolio is 55,701,000,000, as mentioned before. And we will keep pointing out that this running yield is not the same as valuation yield. Maybe you can say that we actually perform better in our portfolio than our appraisers expectations. In the valuation method, there are, for example, calculation models for future vacancies. But we work with our properties so that vacancies should stay down. When our vacancy increase in the property stock, it's usually because we have bought something with vacancy or emptied a property to create vacancy for development. This is a way to grow. If we go to the office portfolio, the market value is now 46,455,000,000 and overall the occupancy rate is 94%. It's 95 in Malmö, 91 in Helsingborg, 94 in Lund and 95% in Copenhagen. Improved numbers. Improved occupancy rate is always a joy, but we don't hesitate to create or buy vacancy when we think that is the right thing to do. The operating surplus from offices summarized to 2 billion, 520 million and a running yield of 5.4 percent. Bring stability and resilience when interest rates goes up. The demand for logistic and production continues to be good, but not at record levels. Occupancy 92% in Malmö, 89% in Helsingborg, 98% in Lund and 95% in Copenhagen. 91% occupancy rate as a whole with a running yield at 6.7% and a total value of 6,685,000,000. A slide of the running yield in the portfolio since 2013. The yield has gone down for several years bit by bit and up plus 0.6% quite quickly in 2022. This shows the effect of our increased earnings capacity in relation to the value set by external appraisers. A catalogue of our value and properties in our four cities. 40% of the value is in Malmö, 22% in Helsingborg, 16% in Lund and 22% in Copenhagen. Copenhagen has the largest area with 702,000 square metres, but Malmö have a higher value. The value in Copenhagen is also affected by the weaker Swedish krona. The labour market in our region continues to be strong. The level of unemployment continues down and domestic immigration to our region is positive. The commute between Denmark and Sweden can improve further. And I'm looking forward to that day when we can have a reviewed governmental agreement between the countries. If we can make it even easier to live in one country and work in the other, that will give the labour market several advantages. Acquisitions, not the wildest at the moment for the quarter, just a piece of land. That's Tomaten 1 in Lund, 7,000 square metres land, where we already are active with our first project at this property for impact. The picture shown is the next possible project. And over to you, Arvid, for financials. Rapid changes and higher costs. But I think we can manage well also in these times.

Thank you, Ulrika. Looking at the next slide, the income statement for the quarter, is basically a repetition of what you have already said, Ulrika. Rental income up 22% to 971. Operating surplus up 20% to 667 million Swedish kronor. And income from property management down 2% to 457 million, on the back of rising financial costs. And in a few slides, we'll dig a bit deeper into that topic. Ulrike also elaborated on the changes in values, minus 28 million during the quarter. We all said, excuse me, negative value changes in our derivatives portfolio, minus 99 million Swedish kronor. And bear in mind there that this cyber development and the interest rate swap development actually differs during the quarter. So, changed market rates explains the change in value of the derivatives. All in all, a profit for the period of 255 million. Look at the balance sheet. You can see that versus 12 months previously, the investment properties have increased in value by 5.1 billion Swedish kronor. And at the same time, equity has increased by almost a billion, or 0.9 billion Swedish kronor. And our borrowings have increased by 3.9 billion in a 12-month perspective. That translates to key numbers on the next slide, where the equity assets ratio now stands at 41.1%. and our LTV is 48.5% as of end March. The interest cover ratio is 3.4 times, and that's measured in the quarter individually, so to speak. On a 12-month rolling basis, the interest cover ratio is 4.5 times. EPRAN RV stands at 92.08 Swedish kronor, which is up 7% adjusted for dividend versus 12 months previously. On the next slide, we see the historic development of EPRAN RV. So it continues up in the quarter. And since 2009, the average annual growth has been 16% adjusted for dividends. Looking at the historical or the five-year development of financial ratios, the equity assets ratio on the right-hand side has strengthened gradually over a five-year period to 41.1%. The loan to value has gradually gone down to forty eight point five. And as you can see on the left hand side, the interest cover ratio with increasing interest rates over the past year has gradually come down. And we'll elaborate a little bit more on the interest rate in a couple of slides. Important to look at our net debt in relation to EBITDA. And despite the uncertain, or especially in these uncertain times on the financial markets, it's good that we also in this quarter actually can see a strengthened ratio So, this ratio net debt to EBITDA is 10.8 times as of end March. Slightly stronger than at the end of 2022. Our sources of financing. Look, as you can see on this slide. We are now down to 9% of our financing from the bond market. Just a touch lower than a quarter previously. Half of our financing basically comes from bilateral bank agreements with Nordic banks. And just over 40% of our financing comes from the Danish mortgage loan system. Looking at the structure of the loan portfolio, you can see the details on this slide. Average interest rates has increased quite a lot during the quarter. It's now 3.21, excluding costs for credit agreements, 3.26, including such costs. On the loan maturities, The 820 million, which mature in 2023, are all bond loans maturing in Q3 and Q4, respectively. The average fixed interest period has gone up slightly versus year-end 2022. And now that stands at 2.3 years. And the average loan maturity is 6.2. two years. The change in the average interest rate in our portfolio must be seen in the perspective of the Stiber and Kyber development. Here you see two graphs of that on the left hand side. The development of Stiber and Kyber since the beginning of 2022. And on the right-hand side, the development during Q1 2023. We have our STIBR fixings for our loans at a number of different points in time during a quarter. So when looking at the effect on our average interest rate, it's important to note that STIBR during Q1 2023 Well, the average STIBOR was 86 basis points higher than the average STIBOR during Q4 2022. So that has, of course, driven the very largest part of the increase in our average interest rate during the quarter. In addition to that, we've had an effect of expiring swaps at attractive levels. We've entered some new swaps at obviously higher levels than previously. And we've also taken up some new bank debt at slightly higher margins than previously. So in addition, those different effects have contributed to the increase in the average interest rate during the quarter. On the next slide, we see the graphs of our interest rate sensitivity. And I think it's worthwhile noting on the right-hand graph, the effect of further increase in market rates on our interest cover ratio. And taking the starting points end March, and where Stiber was at that point in time, given our loan portfolio and our interest rate swap portfolio, we can actually cope with a 3.5 percentage point increase in the underlying market rate before our interest cover ratio goes down to 2.0 times, which is our stated objective not to go under. So I think we still have a good stability to cope with the financing costs. Looking at the fixed interest periods and loan maturities in a historic perspective, loan maturities on the right-hand side have remained very stable in a five-year perspective around six years, and the fixed interest period has gone down somewhat, but in the quarter increased again as we've entered into some new swap agreements in line with our financial risk management policy. And my final slide is the available funds. The graph shows unutilized credit facilities plus liquid funds, and that combined is 3.3 billion Swedish kronor as of end March. We think that is a good level and gives us a good financial stability. But of course, unutilized credit facilities also come at a cost. So that, of course, also to some extent affects our financial net. With that, I hand back the word to you, Ulrika.

Thank you, and I'll give you an update on sustainability. We continue with our certification program, 17 properties certified during Q1. Two of them are vacations and 15 are new. Our goal is that 95 percent of the Swedish offices will be certified in 25. And we are on a good way there. Level gold is the normal standard in new built. Silver is OK for the elder stock. And once in a while we can accept bronze. In this case, it fits the property name, Bronsdalken, but that's not the reason here. It's a tenant who has some specific demands, and that's why we have to accept bronze in that case. We also continue with energy savings. Sometimes we invest to improve and sometimes we just use our skill. We bought Österport in Malmö and thanks to our skilled operational organization, we have saved 35% district heating and 17% electricity compared to last year without investments. Let's point out that. Let's go to investments in progress. First, a quick look into my schedule for times this spring spent with a helmet on my head. Four groundbreaking ceremonies, two in Helsingborg with our tenants Nederman and Springhill, one in Lund with Impact and one in Malmö at Bleckhornet. Even if digging isn't my specialty, this digging have definitely nothing to do with the real effect of the project. But it has some kind of effect to gather and have a ceremony showing that we will together make this happen and that we together also are really committed to achieve what we have promised. The municipality, we as landlord, our tenant and our contractors. In Q1, we have invested 391 million and it remains 2,556,000,000 to invest in approved projects. construction cost continues to stabilize and we even even down somewhat important for future growth is that we can continue with our investment in projects that we are able to do adjustments for customers and not at least to keep up property maintenance this will create our value ahead A quick review of our largest projects in Hylje, Black Hornet 1, the project we call Vista, has just started at site. This building will be the new entrance from Copenhagen to Malmö, a large mobility hub with 400 parking spaces. And on top of that, there will be 16,600 square meters office and restaurants. We have a possibility to call off the project in two phases. Really good attention for offices, I must say. Mobility is of great importance. Train, buses and bicycles are really good things, but if you can park your electric car in the same building and just take the elevator up to your office, that has some extra potential. Estimated completion for Mobility Hub in Q4-24 and the offices in Q4-25. In total, at least 5.7% yield on cost. In Lund at Science Village, right between the research facilities MAX IV and ESS, we are in full action with our project space, where Oatly will be the first tenant with the research and development team. We invest 244 million and completion starts in Q4 2023. Continues to follow the plan, and this will probably be our second zero carbon dioxide certified building. And we had a possible tenant visiting this project just a few weeks ago, and they told us that this was the most beautiful building they had ever seen. I will really believe them when they have signed the lease, but at least I like them spreading the words. Post-Tornet 1, Phase 2, a new build office of 9,900 square meters right beside Raffinaderiet and the central station in Lund. Investment 448 million and completion is planned to Q4 2025. Procurement is completed and production start is planned later this year. At Tomatan, we will build a facility for impact, 6,400 square meters in the first phase, and we invest 137 million, including buying the land from the municipality. Yield on cost approximately 6.5%. This project also gives us an opportunity to continue to develop in Västerbro in Lund. Good combination. Completion in Q2 2024. For Nederman in Helsingborg, with a 20-year lease, we are ongoing with this project of 25,000 square meters at Rausgård 21. Investment 420 million and completion in Q3 2024. A long-term investment that also gives a good boost to the surroundings. Our project at Huggjärnet 13, now 80% pre-lit, and both phases are in full production. A multi-tenant logistic facility with start of completion in Q2 2023. And Snårskogen 5. The first project is for Doka. 2,200 square meters investment, 60 million and a completion in Q2 2023. And next one of the same properties, Norskogen 5, we also start a project for Rolko, 3,600 square meters, investment 78 million and completion in Q3 2024. At Plåtfrädlingen 15, we invest 141 million for Spring Hill and room for one more tenant, so 75% pre-lets. A very short production time, so completion in Q4 2023. And a new one, Sundanalo 1254, 100% pre-let, 17,000 square meters logistic and completion is planned in Q1 2025. That was some of the ongoing portfolio. Let's also mention something about future investments. Very important for us to have a plan a long time ahead so that we are prepared when opportunities arise. This is four possible projects in Lund and Helsingborg. I think you've seen them before. Vietskapen 1 at Science Village area, 16,000 square meters at Idion Torget, just beside the tram station. And we can split this into several phases. Polisen 7, offices in the city center of Helsingborg, at Västerbro in Lund, where we can develop somewhat 70,000 square meters in the future. Zoning plans are approved for the first three projects. Next slide, Börshuset, what I think will be the best possible offices in Malmö in the future. Discussions with possible tenants is ongoing as well as design phase. The last tenant moves out in June. So after that, we can start the project if everything works out the way you want. Possible completion in Q3 2025. And a few other possibilities from the industrial and logistics segment. Tomaten 1, additional 2,500 square meters. Bilrutan 5 in Helsingborg, inlands Krona. 14,000 square meters logistic, just beside the highway. And we have also land at Örja and Pedalen, Inlandskrona, close to Bilrutan. And this project Sunnanå at 1226 in Malmö is a new one, approximately 4,000 square meters. Here are some examples of what we can call fill-in projects on existing land. But when demand increase, we can add on value. These possibilities are all in Malmö, Stenålden, Benkammaren, Spännbökland and Hindbygården. And of course, we continue inexhaustible with Nyhamnen. The light blue buildings in this picture are from our running portfolio and the dark blue is building possibilities on our land or where we have land allocation agreement with the municipality of Malmö since many years ago. One example in that area is Laktoset. We own the land and have plan permission for housing, but we think that the area needs a higher density, and we will work for that. Offices at best location is our goal, of course. And some other projects in this area, both from Nyhamnen and Dokkan, and a mix of approved zoning plans, ongoing plans, and applications for zoning plans. Let's summarize Q1-23 once again. Record high rental income plus 22%, operating surplus plus 20%, positive net letting, increased occupancy rate, higher financial costs, and our stable balance sheet and access to liquid funds gives us opportunity to continue with our investments. And by that, we are open for questions.

If you wish to ask a question, please dial star 5 on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial star 5 again on your telephone keypad. The next question comes from Marcus Henriksen from ABG Sundal Collier. Please go ahead.

Thank you very much. Good morning, Ulrika and Arvind. First off, a lot of companies nowadays talk about divestments to reduce debt. What's your view on the situation? Are you looking into divestments or acquisitions currently?

We always look at possible acquisitions and try to be picky as usual, choosing the right ones. Divestment is not our goal at the moment.

Very clear. Thank you. Have you seen any deals, transactions out for sale here in the beginning of 23, either in office segment or in the logistics that you think is representative of your portfolio?

Not that I can think of, no.

Okay. Moving to projects, you discussed a lot. I had a question on POS 201. It's...

quite some time before completion but could you give us an update on potential lease discussions and what yield on cost you hope to achieve in that project yield on cost close to six percent and yes positive discussions ongoing no sign leases yet but the location is very good and also the quality is So I'm totally secure that we will fill that up in a good way. And also the rents in Lund are moving to very decent levels.

Thank you for that. What is a decent level in Lund nowadays?

I think that for new build projects with good quality in right location, you should be quite close to 3,000.

Perfect. Thank you. One last question. Last quarter, I think you had 8% CPI assumption in your valuations and many other companies are currently at 4%. Do you have any view here? that you want to share with us?

I think when looking at assumptions in the valuation models, you need to factor in all assumptions, not just highlighting one assumption. So if you look at how our external appraisers put in assumptions in their models as of end 2023, sorry, end 2022, the indexation assumption was 8%, but they had a different assumption for the market rent development. meaning that not necessarily everything would feed through. So, I mean, you really have to look at the market rent expectations, the indexation expectations, the cost expectations, as well as potential yield requirement changes and potential changes in the discount rate at which you discount the foreseeable cash flow.

overall you can agree on that yes but you can say if you look a year year back and look at the report so how much the the yield requirements have have moved i would say that we have uh followed that line but we started a bit earlier thank you for that so i should interpret that answer as that you are quite cautious on some of the other metrics that's what you're trying to clarify

Yes, we feel that we are not stretching valuations in any way. Perfect. Thank you. Those were my questions.

The next question comes from Erik Granström from Carnegie. Please go ahead.

Thank you and good morning, everyone. I have a few questions as well. If we start by looking at the development of income from property management, it did come down a little bit year over year now in Q1. I know that you don't give any guidance, but given what you know now of the stybor development and so on of financial costs, do you think that you could reach a growth in income from property management this year versus last year? In 2022, you did achieve a little bit of growth, even though we saw increasing interest rates. So What do you think is doable this year?

Well, as you know, we don't make any forecasts apart from what you can find operationally in the property table, in the report, as well as the details on our debt portfolio. But basically, what you need to assess for yourself is, of course, which... which underlying market interest rate development do you expect for the rest of the year? That will be the determining factor. As you can see in the report just published, the core operations develops strongly. So the question mark is the rest of the year, what will happen to market interest rates?

Absolutely. And in terms of your comment during Q1 with some expiring swaps as well as new swaps. Do you expect to do a large proportion of that throughout the year as well? I believe you have $2 billion expiring this year in terms of swaps that we should also expect that cost to increase in general.

You will have an effect of that during the rest of the year as well. To elaborate a bit on our interest rate hedging policy, what we've said or stated in our policy is that we want to have a certain proportion of interest rate maturities, a minimum and a maximum level during a period of zero to one years, one to two years, two to three years, etc., And that basically means that in any given year, some interest rates swaps will expire and we will gradually enter into some new interest rate swaps. So that, of course, will have an effect as well.

Understood. Thank you. And then my final question regards the maturities of the bonds of $820 million that you mentioned. I believe you said it was in Q3, Q4. Correct. Have you started sort of thinking in the discussions of how to refinance this? Is this something that is already sort of completed and done? And are you looking to do this in terms of secured financing to the banking system? Or would you like to go on into the capital market and sort of try the cost there at this point?

If the bond market functions the way it does today, it's likely that we will repay those bonds using existing unutilized credit facilities with banks. At the same time, We follow the development in the bond market because, of course, ideally, we will also in the future be able to be active in the bond market on reasonable terms, at least. You saw some improvements in the bond market in February. Then we had some financial market turbulence with Silicon Valley Bank and Credit Suisse, etc. And it's a number of months before the maturity of these bonds. So if the bond market recovers, stabilizes, improves, we may be active in the bond market again.

Okay, understood. And my final question is regarding unutilized credit facilities. I believe they came up a little bit during the quarter versus year-end, meaning that you're sort of increasing your capacity. But you also mentioned that that obviously comes with the cost. What's your thinking for the rest of the year? Should we expect unutilized credit facilities to continue to increase throughout 2023? Or do you feel that this just north of 3 billion is sufficient?

North of 3 billion is sufficient. And the development year and the rest of the year, of course, depends a bit on what will happen in the bond market. Will we use part of those 3.3 billion to repay the 800 million? And obviously, of course, will we see any acquisition opportunities? What will the level of project investments actually end up with towards the end of the year? We have, as you know, a dividend payment in a few days' time that will, of course, also affect credit facilities utilization.

Okay, perfect. Those were my questions. Thank you very much.

The next question comes from Lars Norby from SEB. Please go ahead.

Hello and good morning. I have a question about the impact from the economy. I mean, you're reporting high growth in rental income, high growth in net operating income, and for that matter, positive net letting. Do you see any kind of

impact from a slowing economy on your customer base your tenants i would say that some tenants what we have seen lately the last years i would say is that the tenants want to they need to make the workplace even more attractive so that they can get their employees back to the workplace. And that continues. Good, very high focus on that. But we also see, of course, examples of Can we do this more efficiently in any way? But all these kind of actions taken from our customers is a good thing because that makes them more attractive for the future. So I think as long as we follow these needs, but we see very different kind of needs because the market consists of different kind of businesses. So I think... Of course, I expect that we will see also examples of business that are really struggling ahead. But that is a part of it. And I don't see any large signals on that at all.

And how about remote working? It's a factory in Stockholm. How much of a factory is it in Malmö or Copenhagen, and in what way does it affect your business?

I think that a combination is here, of course, but also that maybe we in this region have a bit of a better possibility to get to work without taking too long time for that. And working together is an attractive product. What I'm a bit worried about is that when we see, I think I mentioned that last report maybe, that in the last Microsoft report about remote work, employees use the same reason why they choose to work from home and why they go to the office i choose to work from home because i want to work focused i choose to go to work because i want to work focused and if you ask um if you don't are able to give your employees the kind of areas needed for doing the work at the workplace, I think that might be a challenge for the future. If you think that all the areas should consist of, you know, open areas where you can do nice things and meet and greet them and drink coffee and such. You have to also bear in mind that you have to give the opportunities to actually work focused at your workplace. You see examples from, you know, these kinds of table tennis. You know how much that sounds? That's a really disturbing sound for many people. So you have to... I know that it's important, of course, that you want to achieve attractive areas, but attractiveness consists of different things. And you have to combine that on your workplace, I think. And I think we see more of that now. So also more closed areas and more focused areas and even single rooms and such that are increasing a bit more.

Okay, final question from me is regarding transactions and property values. You're reporting virtually zero value changes in the quarter. At the same time, transactions in the market, talking about the total Swedish market, which you mentioned in your report, are down sharply in the first quarter. Doesn't this create quite a lot of uncertainty about property values when liquidity is not there in the market? And how do you feel about that and how is it reflected in your valuations?

Of course, even if the valuation is minus 28 million and that is close to zero. So that doesn't mean that it's no changes between properties. So something's up and something's down. But as mentioned before, we started a bit earlier than we have seen many others on the way up with the market yields, for example. And of course, these market parts have been, we have constantly discussions with our appraisers, of course, when we do our valuations also in this quarter. I think we saw in Q4, for example, we have an industrial segment. We're valued down a bit more than the office part. But close to zero now doesn't mean that we don't have any changes in the total between the properties. Yeah.

But I take your point that a very low transaction volume, of course, makes it more tricky to find relevant comparisons in, so to speak, real transactions. What we can do is, of course, to focus on continuing to generate a decent cash flow. That we can actually affect. And at some point in time, that will feed through also in valuations.

Okay, very good. Thank you.

The next question comes from Danscare Bank. Please go ahead. Danscare Bank, your line is now unmuted. Please go ahead. Please state your name and company. Please go ahead.

If there's no question from Danske Bank, I received a question via email here relating to the webcast. It comes from David Flemish at Nordea. The first part of the question relates to interest rate hedging, and I believe we've actually already answered that part of the question previously during the Q&A session. The second question is, can you elaborate a bit on the development of bank margins in recent quarters? What is the average margin in your portfolio? Bank margins in our bilateral bank agreements are moving slightly upwards. I'd say a bit over a year ago, a three-year bank credit would probably have cost us about 120 basis points in margin. And currently, it would probably cost us in the region of 150 basis points. So there's been an increase during the year, although not at all as dramatic as in the bond market. The average bank margin in our portfolio, without having the exact number in my head, I would say that that's probably around 120 basis points on average, maybe a touch below that. So I hope that answers your question, David.

There are no more questions at this time. So I hand the conference back to the speakers for any closing comments.

Okay. So thank you for today. And of course, you're always welcome with additional questions in other forums than this. And by that.

Okay. Wish you all a good day. Thank you very much.

Thank you.