Wihlborgs Fastigheter AB (publ)

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Thank you and welcome to this presentation of e-books first half report 2024. Curiosity, knowledge and grit, important factors for sustainable business. I'm very proud being a part of Vilvogs and that our strategy for long time stability and growth seems to work. We change a bit every day, trying to avoid drama, planning a long time ahead to be prepared also when changes come. And most of all, we really love our core business. To be there for our tenants, knowing our products really well, improving techniques and finding new and more efficient solution along the way. And also important working in close relation with our municipalities to contribute and improve the cities. That is why we call us a relation and region builder. Let's go to our report and we start with a summary of Q2. A new record in operating surplus for one quarter, 764 million Swedish krona. Since focusing on cash flow and cost control in operation, this has a meaning for us. Net letting positive at quite high numbers. The demand for good quality in good location continues. Higher financing costs but an ECR at 2.5 times. And our project volume gives a good potential for growth. Results for the first half, 24, rental income increased by 7% to 2 billion 72 million and rents increased more since service cost decreased. The operating surplus increased by 7% to 1 billion 482 million and income from property management amounted to 884 million affected by higher financial cost. The result for the period amounts to 688 million, corresponding to 2.27 krona per share, and EFRA NRV has increased by 2% to 88.72 krona per share, adjusted for paid dividend. A comparison of the rental income, first half, 23, and first half, 24. Indexation, plus 88 million. One-off from Q1, 20 million. Acquisition plus 6 million. Property tax has increased in Denmark and that gives extra income of 5 million. Currency effect plus 3 million. Supplementary billing and income from canteens decreased by 12 million. And completed projects, new leases and renegotiations plus 27 million. We have signed new leases for the last quarter of 94 million, 270 million in the period. The positive net letting for the quarter is 21 million and 50 million for the period. The high activity continues in all of our cities, and I'm very grateful to the whole organization that work hard, listen to our customers and find really good solutions. Also, the last quarter we have succeeded to switch tenants in the same area almost from one day to the next. But even if we always have discussion ongoing, this is not the normal procedure. We have just started July, but I feel positive also for the fall. Some are new tenants that we have signed during Q2 on this slide. And as always, a wide spread of many tenants in many sectors contributes to a growing market. Here we have schools, consultants, logistics, tech companies and the governmental sector represented. Here we have the net letting in historical perspective. Letting in light green, terminations in light blue and dark blue stacks are the net letting. Now 37 positive quarters in a row. And even if we don't hit new records in volume, the net letting of 21 million is a good level. No promises ahead, but we do everything we can every single day to continue. We love our core operation and this is the heart of the core. And the list of our 10 largest tenants in alphabetic order. Strong customers and they contribute with 20% of our rental income. 7 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. Rental value as of 1st of July is 4 billion 490 million per year and rental income 4 billion 102 million plus 5%. A good part 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 year round, depending on when the lease was signed. So low inflation in Denmark affect these figures. Looking at like for like figures, comparing the properties we owned a year ago with updated figures, we can see that the rental value is up 6% and rental income is up 5.3%. If we just look at offices in Sweden, rental value is up 6.7% in like for like. Let's look at changes in the market value of properties. We started the year with 55 billion, 872 million in accordance with our 100% external valuation. Acquisition adds on 201 million. Investments 1 billion 40 million. Divestment minus 4. Changes in valuation minus 31 million. And together with currency translations of 107 million. That's summarized to 57 billion 159 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 also during the last years with rapidly higher yield requirements been able to increase the value somewhat. Valuation is interesting, but most of all, it's interesting to measure how we actually perform in relation to these values. These figures, the running yield, show how we actually perform. So this is not the valuation yield. For the whole portfolio, the occupancy rate is 93%, excluding project and land, and with an operating surplus of 3 billion 91 million, that gives a running yield of 5.7%. 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 now is 46.5 billion and overall the occupancy rate is 93%. 96% in Malmö, a high level, 91% in Helsingborg and Lund and 92% in Copenhagen. When we add new products to the market or buy vacancy, that can affect the figures downwards a bit, but we have kept the numbers at good levels despite that. In the best days we can improve a bit, except in Malmö, but we see positive changes over time, not at least in Lund where the improvement has been ongoing for some years. The operating surplus from offices summarized to 2.6 billion and a running yield of 5.6%, 6.1% fully left. This brings stability and resilience. The demand for logistic and production continues to be good, occupancy 94% in Malmö, 85% in Helsingborg, a bit lower, mainly according to changes between tenants, 98% in Lund and 97% in Copenhagen. 90% occupancy rate as a whole with a running yield of 6.7%, 7.6% for Lillet. A total value of 7,371,000,000. High flexibility and changes at a faster pace is especially important for logistics in this segment. Production seems to be more persistent and focus on high quality. Development of our total portfolio running yield 5.7% brings stability, not at least since the portfolio overall have a high quality and good locations, but a quick increase of the running yield since 2021. ESG performance at this slide, we continue with our certification program. Now 85% of the Swedish office portfolio is approved. Energy savings are also of highest interest and we continue to improve here as well. The carbon dioxide figures are at low levels for scope one and two, but affected by a breakdown in a cooling machine at one of our district cooling suppliers. This proves how important it is that we continue to influence their production methods as well. Other sustainability actions I would like to point out is Black Hornet 1, first in Sweden with a new manual for miljöbyggnad 4.0, which also includes parameters in line with the EU taxonomy. And we have level gold here. We start our first larger battery storage in Lund, a way to also contribute to balancing the electric supply system. We have new requirements for procurement of solar cells, which includes demands for people and production methods. Will give us some headache for some time, I guess, but the only way to go. Continue our work with climate adaption, especially heavy rain and raising water levels. Now also with a more scientific method. And our Janne-lösningar are fitted in everywhere we can, saving a lot of energy. Lately, we have also found methods together with our energy suppliers to improve the business model for this, and this will improve the economic numbers further. A catalogue of our value and properties in our four cities. 40% of the value in Malmö, 22% in Helsingborg, 16% in Lund and 22% in Copenhagen. Last time I mentioned the massive ongoing infrastructure investment in Denmark and the construction of the Fremont Belt tunnel which are ongoing and this time I would like to comment a bit on how the commuting possibilities in the Swedish part of the Arizona region contribute to making it easier for people to actually meet. Easier to get to work, easier to choose where to live and still have several of interesting job possibilities close by. The white connected areas in this picture show how far you can live from city center and commute in less than 30 minutes. All our four cities are connected in this pattern and I'm totally convinced that this increase the attractiveness of actually working at work. Together with your colleagues and on the next level, I'm totally convinced that this affects the productivity, interaction and innovation in companies and also in the region. It's fun to work together, but it must be reasonable, easy to meet. And time for financials. Over to you, Arvid.

Thank you very much Ulrika and good morning everyone. We can see that rental income increased by 7% to 1 billion 32 million and operating surplus increased by 6% to 764. And as Ulrika mentioned, that is actually a record number for an individual quarter when it comes to operating surplus. Income from property management amounted to 460 million, which is minus 6%. affected by higher financing costs. And we'll get back to that in a few slides. Small positive value changes regarding our properties in the quarter, plus 28 million. Valuation yields are basically flat. And then we'll see what happens with valuation yields going forward. And it is, of course, interesting to watch what central banks will do to the rates during the second half of the year and how that may affect valuation yields. We had a profit for the period amounting to 350 million. Looking at the balance sheet, investment properties versus 12 months previously. increased in value by half a billion Swedish kronor to 57.2 billion. Equity decreased by approximately a billion. And then you shall of course remember that we paid approximately a billion in dividends during Q2. And in the same time perspective, our borrowings increased by 1.1 billion. Translating that into key ratios, you can see that the equity ratio now stands at 37.6% and the LTV at 51.8. The LTV has, of course, been affected by the dividend payment and that effect corresponds to basically one point or approximately 1.7 percentage points on the LTV number. It can be worthwhile keeping in mind. The interest cover ratio multiple is now 2.5 times. The EPRA NRV, as Ulrika mentioned, increased 2% versus 12 months previously, adjusted for dividends, and now stands at 88.74 Swedish kronor. On the next slide, you can see the historic development of EPRA NRV. And since 2009, we still have an Average annual growth rate of 15% in this number adjusted for dividends, of course. The historic development of our financial ratios is visible on this slide. Equity assets ratio at 38%, the LTV at 52, and interest cover ratio at 2.5. And we also on the next slide have a financial metric we've been talking about for several years now, which we feel is relevant for showing our financial stability. Net debt in relation to EBITDA stands at 10.2 times. which is the same as last quarter. And as you can see on the graph, actually a slight improvement over the past couple of years, which I think is positive given what the world has looked like in that period of time. Looking at our financing, we still have approximately half of our financing from bilateral bank agreements with Nordic banks. Approximately 40% of the financing from the Danish real mortgage system and now 10% from the bond market. As you are aware, the bond market has improved significantly over the past six to nine months. We issued a bond a few weeks back, a 3.25 year bond with a margin of 123 basis points. And that is, of course, a huge improvement over a nine month period and quite competitive now versus secured bank financing. Bank financing has also improved over the past 69 months. And looking at the next slide, you can see the details of our loan portfolio. The average interest rate excluding costs for credit facilities is 4.05. That is slightly up during the quarter or versus a quarter ago. We've had an effect of lower stiber, which has affected this number by approximately minus 10 basis points. At the same time, we've had interest rate swaps at the very attractive levels expiring, which has affected this number upwards by approximately 10 basis points. Then we've also had an upwards effect, partly from increased debt, but also renegotiated bank agreements, which have slightly higher margin than the previous agreements had. And to put that into perspective, you can say that the the agreements we have renegotiated, the last time we did renegotiate those contracts or bank facilities was approximately three years ago. So the world looked slightly different at that point in time. Going forward, you can bear in mind that we still have some advantageous interest rate swaps, which will expire, as you can see in the table in our report. We have, of course, expectations of further central bank rate cuts during the second half, which will improve the situation. You can also bear in mind that you have some new regulatory changes regarding capital requirements in the Danish rare mortgage system, which may affect those margins slightly upwards. Looking at interest rate sensitivity, You have a graph showing that on this slide. And the conclusion from the slide is basically that the underlying interest rates, Tiber, Kyber, can increase by one and a half percentage points. And we would still be at an interest cover ratio of two times, which is our stated targets. And the underlying rate could actually increase as much as five percentage points. and we would still meet our bank covenants of 1.5 times interest cover ratio. The fixed interest period and the loan maturity on the next slide. Fixed interest period now stands at 2.5 years and the loan maturity at 5.9 years. And last of the financial slides, we track our available funds that is, unutilized credit facilities plus liquid funds, which at the end of June stands at 2.8 billion Swedish kronor. And with that, I hand the word back to you, Ulrika.