Wihlborgs Fastigheter AB (publ)

Thank you, and welcome to the presentation of Veil Voice Q1-24. The time of change continues, and even though we have now started our 100-year celebration, we have our total focus on the future. The positions we're taking during a week of time make us feel well equipped for acceleration, and we might see some light shining at the end of this turn. Regardless of what happens next, we intend to be ready And we start with a summary of Q1. A new record for new letting in a quarter, 177 million. And net letting positive for 36 quarters in a row. We also see continuous demand for high quality in good locations. Quarterly revenue above 1 billion Swedish kronor for the first time. Higher financing cost, but ICR at 2.5 times higher. And we have also seen bond market recovering during the quarter. The results for the first quarter, rental income increased by 7% to 1 billion 40 million. And we have just looked at rent. The increase was 10% while service costs decreased. The operating surplus increased by 8% to 780 million, and income from property management amounted to 424 million, affected by higher financial costs. The result for the period amounts to 348 million, corresponding to 1.13 krona per share, and EPRA NRV is now 19.39 krona per share. A comparison of the rental income Q1-23 and Q1-24. Acquisition and currency effect, plus 2 and plus 1 million respectively. Indexation, plus 48 million. One-offs in early termination, 20 million. Supplementary billing and income from canteens decreased by 15 million. Completed projects, new leases and renegotiations, plus 13 million. We have signed new leases for the last quarter at a new record level plus 177 million and the positive net letting for the quarter is 29 million. This is an extremely high activity and I would say that this period of transformation continues and we have continued good relations with and find new solutions for our tenants. Also good activity in early April. The new lease with Novo Nordisk in Högetostrup for 62,000 square metres is of course a great volume in new leases, as well as the termination from Danske Bank at the same property. But it's worth mentioning that our net letting would have been positive also without that deal. And as I usually point out, it continues to be the widespread of many tenants in many sectors that contribute to our long history of positive net letting. We see some figures of higher vacancy in reports from consultants, and I know that we have contributed with positive figures showing lower vacancy in at least some report. So, of course, letting success depends on the product, the location, and maybe something else that the tenants ask for. Here are some of the new tenants that we have signed during Q4. Usually, it's a mix of different segments.

Healthcare growth.

both in Denmark and Sweden. Sweden Care and Rubin Medical have chosen our area Medion in Malmö. Boyado continues their development with us in Lund and Mödra Elektronik have been our tenant for a long time and they have decided to move more production back to Sweden. 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 36 positive quarters in a row, and this is the second quarter in a row when we actually must expand the scale to make room for the high volume, 177 million. million in new leases and 148 million in terminations. Only one quarter with a negative number for over 14 years. We will do everything we can to continue like this. But as I also always say, let's keep in mind that a quarter is quite a short time period.

Matching 62,000

thousand square meters in and out in the same quarter as we have done now in January is only possible with a very skilled organization.

Here is the list of our 10 largest tenants in Alphabetic order. alphabetic order.

Novo 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. The rental income from public tenants is in total 23% and they contribute to long-term stability in our cash flow.

The rental value as of 1st of April is 4%. 4 billion 458 million per year and rental income

4,191,000,000 plus 6.4%. A good part of that is, of course, indexation. And let's remember that indexation in Denmark and Sweden have been quite different during 2023. Approximately 1% in Denmark and 6.5% in Sweden. In Sweden, the indexation is made once a year with October CPI as the base. But in Denmark, the indexation is made all the year round, depending on when the lease was signed. So low inflation in Denmark affects these figures. Looking at like-for-like figures, comparing all the properties we owned a year ago with updated figures, we can see that rental value is up 5.6% and rental income is up 5%. If we just look at offices in Sweden, rental value is up 6.7% in like for like. Let's look at changes in market value of our properties. We started the year with 55 billion 872 million in accordance with our external valuation. We have no acquisitions so far, but invested 470 million.

Changes in valuation amounts to minus 59 million, and together with currency translation of 466.

million that summarized to 56 billion 750 million Swedish krona. The value of the portfolio has developed as you can see on this slide since 2005 without raising any new equity with investments, new leases and a few Transactions we have in 23 and start of 24 have been able to increase the value somewhat, despite higher yield requirements for seven out of the eight last quarters. Now it's possible that the yields will be flat for a period.

Most of all, it's interesting to measure how well we actually perform. in relation to these values and we see this on the following slides this is the running yield showing how we perform in relation to the valuation so not the valuation

valuation yield for the whole portfolio the occupancy rate is 93% excluding project and land and with an operating surplus of 3 billion 100 million that gives a running yield of 5.8%. Fully let the portfolio would give a running yield of 6.3%. Good earnings capacity in relation to the value of the portfolio. In the office portfolio, the market value is now 46 billion, 482 million. And overall, the occupancy rate is 94%. 96% in Malmö, 92% in Helsingborg, 90% in Lund and 94% in Copenhagen. Improved numbers compared a year ago, except for Lund, where we have added two new projects, Daffodil 3 and Kunskapen 1, which are not fully occupied yet.

But let's also mention Nya Vattentornet for in Lund. It was approximately 50% vacant when we bought. And now, later this year, it will be fully let.

96% occupancy rate in Malmö is a very high level. And the operating surplus from offices summarized to 2,622,000,000 and the running yield 5.6%.

6.1% fully let.

This also brings stability and resilience. The demand for logistics and production continues to be good. Occupancy 94% in Malmö, 87% in Helsingborg, 98% in Lund and 97% in Copenhagen.

90% occupancy rate as a whole. with a running yield of 6.6%.

and 7.6% fully let, a total value of 7,191,000,000. A bit lower occupancy in some properties, mostly as effect of projects and changes we do together with tenants. But we also see that tenants ask for higher flexibility and need changes at a faster pace in this segment. Development of our total portfolios running yield 5.8% is back at the same level as 2015, but we have improved our portfolio significantly since then. So we have a higher quality today, a quick increase of the running yield during the last two years.

A catalogue of our value and properties in our four cities. 40% of the values in Malmö, 22% in Helsingborg, 16% in Lund. and 22 in Copenhagen.

The massive ongoing infrastructure investments in Denmark continue, and the construction of the Famambel tunnel is one major element. The first part of the tunnel at Rødbyhalm is now actually underwater, and the southern parts of Sweden will benefit from all these investments in the future. Actually, this investment turned things around a bit. Two and a half hours to Hamburg with train will change things. Also, Lettbanan around Copenhagen plans to be open in 2025. And yesterday, the Danish Energiestudelsen announced a large opportunity of 6 to 10 gigawatt of shore wind power. All these things will affect Sweden in a good way. And I think that we are becoming more and more aware that we also need to accelerate the infrastructure