Wihlborgs Fastigheter AB (publ)

Welcome to the presentation of AVOC's full year report 2024. Another year has come to its end and a pretty active start of 25. So at the same time as we summarize 24, we have our full focus on 25 and knowing there is more to harvest in 2026. It is special times, a lot of changes and challenges around us and we must adapt and find new ways. If we put human tragedies aside, change and challenges is nothing new. Time always seems to be special. And that means that what's new is how well and how quickly we adapt and how fast we can find the new opportunities in every day of change. And if anything can summarize the times of today, we claim that it's a time of action. We have been quite successful to adapt and achieve results in challenging times so far. And that ability is the only thing we refuse to change. Let's go to our report and we'll start with a summary of Q4. We have a new record in rental income for one quarter, 1,059,000,000. Net letting positive with 30,000,000. Income from property management up 23% to 452 million.

Net debt to EBITDA below 10 times. Demand remains for good quality in good location.

Project investment continues to give good potential. growth. And as announced yesterday, transaction will also contribute to growth. We'll be I'll come back to that at the end of the presentation.

And the last point in the summary, the board proposes a dividend of 3.20 krona per share. Results for the full year, 24, rental income increased by 8% to 4,174,000,000, and operating surplus also increased by 8% to 2,996,000,000, annoyingly close to 3,000,000,000. Income from property management amounted to 1,781,000,000 and result for the period amounts to 1,706,000,000 corresponding to 5.55 krona per share and EFRA NRV have increased by 8% to 93.58 krona per share adjusted for paid

Rental income. Full year 2023. Full year 2024. Indication gives plus. Acquisition The property tax has increased in Denmark, and that gives extra income. Of 15 million, we have a cash effect of minus 5%. supplementary building plus seven and increasing income from And completed. projects new leases and renegotiations plus 61 million. I remember

February 21, when we summarized 2020, and for the first time had rental income above 3 million. I got the question in an interview, if I now was satisfied reaching about 3 billion, like if we had in some way reached the finishing line. My answer is that I like 4 billion better and that development has no finishing line. We will continue. We have signed new leases for the last quarter of 86 million and for the full year, 371 million.

The positive net letting for the quarter is 13 million and 91 million for the period. I'm very grateful to the whole organization who works hard and brilliant, both easy and more struggling days. Here are some of the things that we have signed during Q4. Tulip. Moving to the Dokkan area, as I talked about already in October. But also Visma at Härnäs in Helsinki. more so with a new project at Markham in Lund. All of them are good representatives growing businesses in our region. Here we have the net letting in historical perspective. in light blue and dark blue stacks. 39 positive quarters in a row. And the high volume with new demand seems to continue.

We see no end to the question of what creates the best environment and conditions for the employees. When it comes to net letting, I continue to repeat myself on this slide. We have no promises ahead, but we do everything we can every single day to continue to be on the positive side. A quarter is, in this perspective, a short period. We see potential ahead, but we also know that we will get termination in Q1.

39 quarters in a row is good, but 40 is better. So, of course, we go for that. Here are some of the list, our ten of them in alphabetic order. strong customers and they contribute with 20% of our rental income. 8 out of 10 are governmental and the rental income from public tenants is in total 23% and they contribute in long term. Stability. in our cash flow. The rental value as of 1st of January, $4.6 billion. $646 million per year, plus 5.4%. And rental income, $4,157 million. Again, plus 2.8. Looking at life figures, all the properties we owned a year ago.

including projects compared with updated figures, we can see that the rental value is up 2.7% and rental income is down 0.2%. The growth in rental value is supported by indexation of 1.6% in Sweden and approximately 1% in Denmark. Lower rental income is an effect of higher vacancy. there is normally a gap between moving out and moving in so although the net letting has been high and positive we can occasionally have lower income in a part of the portfolio from one period to another and that is what we see at the moment.

changes in the market value of our properties. We started the year with 55 billion. We will let them evaluate one. every year and same routine this year of course acquisition adds on to her 1 million in investments, 2 billion, 204 million. Divestment mining is 117 million. Changes in valuation plus 585 million. And together with currency translations of 4. $423 million. That's summarized to a value of $15 million. $9,168 million. You can see on this slide since 2009. five with investments new leases and a future

transactions we have also during the last a bit more struggling years been able to increase the value bit by bit and these figures the running yield show how we actually perform in relation to the valuation so this is not the valuation yield For the whole portfolio, the occupancy rate is 91%, excluding project and land, and with an operating surplus of 3 billion 140 million, that gives a running yield of 5.6%. For the portfolio, it would give a running yield of 6.4%.

Good earnings capacity in relation to the value of the portfolio. In the office market, the portfolio have a market value of 47.6 billion. Overall, the occupancy rate is 91%. 92% in Malmö, 87% in Stockholm, a bit higher vacancy affected by the gap between moving in and out, as I mentioned. For example, IKEA have continued to downsize in external rental areas and we have effects from that both in Helsingborg and Malmö. These figures will improve later this year. But the full effect from many new leases will come also in 2026. occupancy for offices to increase two percent for example, from new leases we have signed so far. The operating surplus from offices is summarized to

2,676,000,000 and a running yield of 5.5%, 6.2%. The demand for logistics and production continues to be good, especially in Malmö, with an occupancy of 95%, lower in Helsingborg, 83%, 99% in Lund, and 96% in Copenhagen. 88% occupancy rate as a whole, with a running yield of 6.5%, 7.6% fully let, and a total value of 8,212,000,000. We continue to see harder competition in the third-part logistics

segment with quick changes it needs uh best success for us and to have a combination of needs, for example, production and even better if they also have reach. research and development. They have high demand and are willing to pay for quality. The development of our total portfolio's running yield 5.6% brings stability. Since the portfolio overall has high quality, As noticed before, a high increase of the running yield since 2021. And here are some ESG results. From Q4, certification reached our goal of 90%. percent of the Swedish offices in the end of 2024. The evolution of supplies will continue

and maybe forever because changes happen all the time. So this work will never stop. Our carbon emissions from scope one and two will continue to decrease. The impact are lower, but we are also dependent on our energy suppliers, especially in Denmark. Energy consumption has impact further and that work will also continue. And some other sustainability highlights from Q4. As mentioned, we managed to reach our certification goal for 2025, one year ahead.

So now we continue with the rest.

It's good to notice that Denmark now follows the same track. I'm looking forward to seeing the Danish portfolio catching up. that we won the Green Lighthouse Award from the University of Denmark and the Big In Sweden, we won the Sweden Green Bay League council's prize for best certification both in-class and Other part of sustainability is working environment and security of our buildings. Of course, there are a lot of regulations that we follow. Follow carefully. But during 2024, we have extended in order to improve that security furthermore. The work is a combination

of control and support and we do this together with our suppliers. Here is a catalogue of value and properties in our four cities. 40% of the value in Malmö, 22% in Helsingborg, 16% in Lund and 22% in Copenhagen. And something about the region. I have already repeatedly talked about the massive ongoing infrastructure investment in Denmark, the construction of the Femambelt tunnel, the increased attractiveness of Copenhagen airport and the region's competitive growth in number of workplace.

So this time, let's mention something about

of the report from the fall when it suddenly became obvious that the demographic situation in Sweden is expected to be a bit It's interesting. to look at Skåne and where the growth is expected. Everything continues to report that the largest cities having the most growth and also the greatest attraction for people moving to this region. Maybe not a surprise, but still good to have some numbers to support the opinion. Thank you very much Ulrika. Good morning everyone. Looking at the Q4 P&L, isolated, you can see the rental income, up 9% versus the same quarter the previous year.

We had an operating surplus of 752 million, up 14%. And the income from property management amounted to 452 million, up a full 23%, as we see the effect of lower market interest rates feeding through our P&L in this quarter. We had positive value changes in the quarter, 514 million. As usual, we had external appraisers.

valuing 100% of the portfolio as of year end. in the same way as we have done historically. The contribution to the value the positive value changes comes to a large part from projects and to some extent from the the underlying assumptions regarding requirements . have been largely unchanged. Thank you. On the next slide.

We can see the consolidated balance sheets as of year end. Investment properties amounting to 59 billion, 168 million, which is up approximately 3.2 billion versus 12 months previously. Equity in the same period has increased by 800 million approximately. and our borrowings have increased by approximately 2.1 billion kroner during 2024.

Translating this into key figures, Our equity assets ratio stands at 38.1%, and our LTV be at 50.9. Interest curve ratio for 2024 was 2.5 times. The APRA NRV is a long-term network. That's the value of the measurement. It stands at 93.50. Which is up 8.5%. versus 12 months previously adjusted for the paid dividend during 2020.

Looking at the next slide, you can see the historic developments of EPRA NRV. The growth has been somewhat slower over the past few years, as you are well aware. But I think it's worthwhile pointing out that since 2009, we actually still have had an average annual growth of 15% in NEPRA NRV adjusted for paid dividends. On the next slide, you can see the development of some financial metrics in the long-term perspective.

On the left-hand side, you can see how the . Stabilizing around two and a half times. of the past few quarters. In the long term perspective, that is a reasonable and well in line with our goal of having a minimum of 2.0 times. And the equity assets ratio at 38.1 is also in a historical position. perspective on a strong level. The LTV at 50.9%.

Looking at financial stability on the next slide, we like to follow the net debt to EBITDA quota, and that is now a multiple of 9.9 times. It's actually the strongest level that we've been at since 2012.