Wihlborgs Fastigheter AB (publ)

Welcome to the presentations of Billboards Q1 2025. A world with new conditions almost every day. Virgins. Things have to be done. Keyword since many years is handlingskraft. Best translated to. We continue to act where we find possibilities and we are prepared for new actions whenever the time is right. During 2024, we had record high volume of new leases, and that strong trend has continued during 2020.

High quality, good locations in the region, with new leases and cash flows also ahead.

And strong cash flow gives opportunities for action. The action continues. Let's go to our report and the summary of Q&A. Rental income, 1 billion 45 million. Income for property management, 9% to 400 million. Net letting positive with 35 million. Good activity. Debt to EBITDA at 10 times. Agreed and acquisition of 2.4 billion from Granitor, completed in the 1st of April. Good quality and good location continues to be attractive. And we continue with our project investments with good results. The results for the period, small increase of rental income to 1 billion 45 million. But let's remember that the comparison period 2024 had one offs over 20 million. The operating surplus increased to 731 million and income from property management, as mentioned, increased by 9% to 463 million. The result for the period amounts to 431 million, corresponding to 1.4 share and EPRA. 3,295.08 krona per share adjusted for paid dividends. A comparison of the rental income Q124 and Q125. Indexation gives 10 million. Termination fees minus 21 million. Acquisition plus 3 million. Currency effect minus 1 million. Additional 7 and completed projects, new leases and re-negotiations. plus 7 million. Q124 was a record level on new leases. And I then got questions if we and the market could keep that volume. The market can shift. I'm very confident that our skilled both focus and tempo. And now the numbers also give proof that the market is there. Q125 is the third highest volume of new leases ever. 134 million and net letting of plus 35 million. You never know ahead what will affect each quarter, but seen over time, 40 positive quarters in a row is our new record. Very grateful to the whole organization for this. It's interesting to see how we can sign new leases in both existing premises and in the new build projects. The is a strength. Without new areas, we wouldn't be able to have positive net letting in all these quarters. But on a yearly basis, the net letting is positive also in the existing portfolio, both for 2023 and 2024. And 2025 also looks positive so far, including April. Here are some of the tenants that we have signed during Q1. The largest leases for Malmö University. But as always, we see a mix of different businesses. It's companies in IT, construction, civil engineering, recruitment, and more governmental tenants as myndigheten för tillgängliga medier. The wide diversity is always a strength. Here we have the net letting in historic Lettings in green, termination in light blue and dark blue stacks are the net letting. Now 40 positive quarters in a row and the high volume with new and higher demands seems to continue. And Q2 has also started well with a new lease with Per Oslepp in Copenhagen of 24,000 square meters at AB Industrivet. So good potential also ahead. Happy with 40 quarters. So next goal is to beat that. And the list of our 10 largest automatic orders. Strong customers, and they contribute with 20% of our rental income. Eight out of 10 are governmental tenants, and the public sector contributes with 23% of total rental income. Rental value, as of 1st of April, our acquisition is 4,596,000,000 per year, plus 3.1% of rental income. But we also see a bit higher vacancy in line with the rest of the market. Looking at the like-for-like figures, all the properties we own is up 2%, and rental income is down 0.8%. The growth in rental value is supported by indexation of 1.6% in Sweden and approximately 1% in Denmark. Lower rental income as an effect of higher vacancy. And that comes both from a timing effect with many new leases where we can see a gap between moving out and new signed tenants moving in. That means that will improve in end 25 and continuous good effect 2026. But we also see higher vacancy in the market. In some areas, as in the industrial portfolio in Helsingborg, I think that higher vacancy will follow us for a bit longer time. And in other areas, as offices in Malmö occupancy will pick up quite quickly when the market turns. We see very few new projects from competitors, and my best estimate is that we can continue to take advantage of that. Let's look at changes in market value of our properties. We started the year with 59 billion, 168 million in accordance with our external valuation. And we let them evaluate 100% of the portfolio every year end. No acquisition during the period. Investment 638 million. Divestment minus 13. Changes in valuation plus 69 million. And together we currently translate. of minus 736 million that summarized to a value of 59 billion 126 million Swedish kronor. 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 been able to increase the value bit by bit. Or 25, the transaction made 1st of April, will contribute in a good way. But we will see that in the next report. 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 9%, excluding project and land. And with an operating surplus of 3,140,000,000, that gives a running yield of 5.6%. Fully left, the portfolio would give a running yield of 6.4%. Good earnings capacity in relation to the value of the portfolio and good cash flow generation is the foundation for further expansion. If we look in the office portfolio, the market value is 47.1 billion and overall the occupancy rate is 91%. 92% in Malmö, 87% in Helsingborg, 91% in Lund and 92% in Copenhagen. Same numbers as year end. A bit higher vacancy than last year, mostly affected by the gap between moving out and new coming in. These figures will improve later this year, but the largest effect from many new leases will come 2026. Occupancy for offices in Helsingborg is estimated to increase 2% in October, for example, from new leases we have signed so far. The operating surplus from offices summarized to 2,572,000,000 and a running yield of 5.5%, 6.2% fully let. The demand for logistic production continues to be good in Malmö with an occupancy of 96% in Malmö, lower in Helsingborg at 82%, 99% in Lund and 96% in Copenhagen, 88% rate as a whole with a running yield of 6.5%, 7.6% fully let and total value of 8,383,000,000. For us, the combination of businesses with production development and logistic will be the best tenant in the industrial portfolio. We continue to see harder competition in the third part logistic segment, quick changes in needs, a higher vacancy as an effect of a lot new build facilities. Worth mentioning is that our portfolio in Helsingborg still gives a decent running yield of 6.5%, even with a higher vacancy. Also good that tenants in our best segment continue with good demands. The development of our total portfolio running yields, 5.6%, brings stability, not least since the portfolio overall has a high quality and good locations. As noticed before, a high increase of the running yield since 2020. ESG results from Q1 certification in Swedish offices are now at 91% and Denmark have started the process in a good way. Energy consumption continues to decrease and we have a new target of maximum 75 kilowatt hours per square meter.