Wihlborgs Fastigheter AB (publ)

Welcome to the presentation of Vildborg's nine-month report 2025. There's an old saying, when you think you can see the light at the end of the tunnel, beware, it could be an oncoming train. We never know what will happen ahead, and we try to be prepared for whatever we can think of, but let us be clear, we see some glimmer here and there. Maybe not the full ray of light yet, but nice glitters in the horizon. It's a very busy report week for all of you, so we'll try to be short and precise. That means standard procedure about the last results of our continued growth and some new records, but also some figures regarding loyalty among our customers, how we can calculate retention rates, and not at least our view of future occupancy. We start with a summary of the quarter July to September. Rental income up 6%, a new record at 1,101,000,000. income from property management plus 11 percent, net letting positive of 6 million, net EBIT to EBITDA at 10.3 times, good access to financing and as said many times before but this still stands, demand remains for good quality in good location and we are proud to be able to continue with our project investment that gives continued good potential for growth. Looking at the whole period, first nine months, rental income up to 3,243,000,000 plus 4%. The operating surplus increased to 2,334,000,000 and income from property management increased by 12% to 1,482,000,000. The result for the period amounts to 1,370,000,000, corresponding to 4.46 krona per share. And EPRA NRV has increased by 10% to 96.23 krona per share, adjusted for paid dividend. A comparison of the rental income, first nine months, 24 and first nine months, 25. Indexation gives plus 30 million. Acquisition plus 90 million. Currency effect minus 21 million. Additional charges plus 21. And completed projects, new leases and renegotiation plus 8 million. And here is also a new higher property tax of approximately 15 million included. So higher vacancy today than a year ago, but small improvements since last report and during 2026, the improvement from new leases will show. And the streak of positive net letting continues, plus 6 million in the quarter, plus 65 million for the period, and in total new leases at a yearly value of 300 million signed in the period. For a third quarter, the volume of new leases of 66 million is good. And maybe I expected the net letting to be a bit better than 6 million, but we've got a late termination of 16 million from a tenant who I'm not sure if they really want to move or just renegotiate. Discussions are ongoing, but the total termination is registered. So a possible upside ahead. 42 quarters in a row with positive net letting. Here are some of the tenants that we have signed during Q3. A combination of expanding tenants and new tenants from many industries, healthcare, insurance, bio materials, and a company that manufactures equipment for land-based fish farms as examples. And here we have the net letting in a historical perspective. Lettings in green, termination in light blue, and dark blue stacks are the net letting. And as mentioned, quite high volume of new leases for being a third quarter. And the list of our 10 largest tenants in alphabetic order, strong customers, and they contribute with 20% of our rental income. Seven out of 10 are governmental tenants, and the public sector contributes with 23% of total rental income. Rental value as of 1st of October is 4 billion 889 million per year plus 7.2% and rental income 4 billion 379 million plus 4.6%. Effects from acquisition, indexation and higher willingness to pay for the right quality. Looking at like for like figures, all the properties we owned a year ago excluding projects compared with updated figures, we can see that rental value is up 2.4% and rental income is down 0.8%. The growth in the rental market is supported by indexation of 1.6% in Sweden and approximately 1% in Denmark last year. Indexation ahead in Denmark expects to be a bit higher, and that will be reflected in the rental levels for 2026. I think the September number was 2.3% or something. Lower rental income in like-for-like is an effect of higher vacancy than a year ago, and at least it's encouraging to see that vacancy appears to have bottomed out in several areas. More on that topic later. Changes in the market value of our properties. We started the year with 59,168,000,000 in accordance with the external valuation of 100% of our portfolio. We have made acquisition, which adds on 2,552,000,000. Investment, 1,911,000,000. Divestment, minus 114. Changes in valuation, plus 450,000,000. And together with currency translations of minus 500,000,000, that summarizes to a value of 63,457,000,000 Swedish krona. The valuation this quarter have no changes in valuation yields, indexation or other underlying parameters. Expectation ahead is more likely to be positive, if I may guess. These figures, the running yield, show how we actually perform in relation to the valuation. So not the valuation yield. For the whole portfolio, the occupancy rate is 90%, excluding project and land, and with an operating surplus of 3,326,000,000 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 also ahead. Occupancy is slightly up, looking at the decimals since the last quarter, and at least that is in the right direction. In the office portfolio, the market value is 50,394,000,000, with an occupancy rate of 91%, 92% in Malmö, improved to 90% in Helsingborg, 90% in Lund and 92% in Copenhagen. The improvement has started and will be clearer during 2026. Operating surplus from offices summarized to 2,755,000,000 and running yield of 5.5%, 6.2% fully let. The demand for logistics and production continues to be good in Malmö with an occupancy of 93%, lower occupancy in Helsingborg at 83%, 91% in Lund with a small portfolio and 96% in Copenhagen. 87% occupancy rate as a whole with a running yield of 6.4%, 7.5% fully let and a total value of 8,988,000,000. As mentioned before, we continue to see harder competition in the third part logistics segment with very quick changes in needs. That also means that occupancy can improve quickly when the market changes. But I assume that vacancy in the southern parts of Helsingborg will be a bit sticky since the area will go through a makeover that would take a number of years. But as mentioned before, still a decent running yield of 6.4%, even with the high vacancy. And the market as such continues to be interesting. The development of our total portfolio running yield 5.6% brings stability, not least since the portfolio overall has a high quality and good location. As noticed before, a high increase of the running yield since 2021. Some sustainability highlights from Q3. We have been appointed as global sector leader by Gresp, completed a battery storage in Lund and actually one in Helsingborg as well. We have signed more sustainability-linked loans, also including scope 3 carbon dioxide performance. And we continue to reduce our energy consumption. As a new example, we have reduced the electricity use for heating and cooling by 50% at Ideon Gateway in Lund, including both offices and a hotel. New cooling technology and, of course, the Janne solution is the answer. And something about what our customers think about us. Our latest customer satisfaction index from now in September shows an index of 79 and a loyalty score of 82. Very high numbers. Tenants are especially happy with our personal service with 88% satisfaction, our competence scoring 86 and accessibility scored 85. Let me just say that I totally agree with our customers. I'm also very satisfied with my competent and service-minded colleagues. I give them 100 out of 100. A catalogue of our value and properties in our four cities in Q3, 39% of the value in Malmö, 23% in Helsingborg, 17% in Lund and 20% in Copenhagen. The region, and especially these four cities, continues to be of high interest for future growth, both in population growth forecast, which will otherwise be a challenge in many places, and in a number of new workplaces. And time for financials. Over to you, Arvid.

Thank you very much Ulrika. Looking at the income statement for the third quarter isolated. Are we on the right slide? There we are, thanks. Rental income grew by 6% to 1,101,000,000 and operating surplus increased by 4% to 790,000,000. There are a couple of things to bear in mind looking at those two numbers. First of all, We've been through a new property taxation and we got the new taxation values this summer. The taxation values are higher, which means that the property tax also is higher. The new property tax is applicable from 1st of January. So we have, you could say, a catch-up effect. So the changes for all three quarters are accounted for in the third quarter numbers. That means that on the rental income line, as Ulrika mentioned, that has been affected with plus 15 million from increased property tax And on the operating cost side, our operating surplus has been affected with minus 20 from the increased property tax for the first three quarters during this year. So the ongoing or the future effects of the increased property tax will be smaller on a quarterly basis than you can see in the Q3 numbers. It's also important to bear in mind that on the rental income line, We've had a negative effect from currencies of minus seven, and that same currency effect on the operating surplus line has been minus five. The income from property management amounted to 495 million. We've had a small positive impact there from FX, since we borrow a lot in Danish kroner as well. Income from property management up 11% versus the same quarter in 2024. We had positive value changes in the quarter of 103 million. And all in all, a profit for the period of 487 million. Looking at the balance sheet, the value of our property portfolio is now 63.5 billion Swedish kronor. up 5.6 billion versus 12 months previously. Equity stands at 23.5 billion, up 1.2 billion versus 12 months previously. And during that time, we have, as you know, also paid approximately 1 billion in dividends to our shareholders. And our borrowings are 33.2 billion Swedish kronor, 3.5 billion higher than 12 months previously. Translating that into key numbers, our equity assets ratio now stands at 36.2%. The LTV has gone down from the last quarter to 52.3%. And the interest cover ratio for the period stands at 2.8 times. Looking at some per share numbers, I'd just like to highlight the EPRA NRV value at 96.23 Swedish kronor per share, which is up 10% adjusted for dividends versus 12 months previously. On the next slide, you can see the historic development of EPRA NRV. stable growth over many years, and the average annual growth adjusted for dividend is actually 15%. Moving on to the historical development of our financial ratios, the equity assets ratio at 36.2, as you can see, is well above the 30% that we've set as the minimum level for ourselves. and also on decent levels in a long-term historical perspective. The loan-to-value in the perspective of approximately 10 years has come down from around 60% now to 52.3%. And the interest-cover ratio, as we've talked about before, has been very very variable, especially during the special period when we had almost zero interest rates, when we had an extremely strong interest cover ratio. The rate is now stabilized and 2.8 times is a quite decent level to be at. On the next slide, you see the net debt in relation to EBITDA, also that's in a long-term historical perspective. The ratio stands at 10.3 times. It varies with a couple of decimals up and down, but being at 10.3 times is a comfortable level for us. Looking at our sources of financing, we still have approximately half of our loans from bilateral bank agreements with Nordic banks. About a third from the Danish real mortgage system and 17% from the bond market. I would say that the banks are definitely more proactive in their lending efforts than they have been for many years, actually. And we do see bank margins gradually moving downwards. The bond market has also, as we noted already in the Q2 report, the bond market is a lot stronger than it was a year ago, and we can issue unsecured bonds at quite attractive levels in this market. The structure of our interest rate portfolio you can see on this slide. The average interest rate is 3.29 3.33 if you include costs for for unutilized credit facilities um we have both in in the past quarter but also if you look over the coming couple of years we will have some some effects of attractive interest rate swaps expiring But we also see an effect of the margins that we pay to banks and in the bond market coming down somewhat. So overall, over the coming few quarters, I would expect the average interest rate to be reasonably flat. And yes, we can move to the next slide and see the development of the fixed interest period, which has gone up a touch in the quarter. It's now 2.7 years. and the average loan maturity and loan portfolio is 4.8 years. And lastly, from my side, looking at available funds, We have unutilized credit facilities plus liquid funds of 2.9 billion at the end of the third quarter, which gives us, in our view, enough financial flexibility to manage operations and seize opportunities in a good way. With that, I hand the word back to you, Ulrika.

Thank you. And an update on our investments in progress and a quick overview of our largest project. During the period, we have invested 1,911,000,000 and it remains 2,730,000,000 to invest in approved projects, good volume in all our cities, a reasonable yield on cost with six or a bit above 6% for new build offices and seven or a bit above that for industrial and a good mix of refurbishment and new built in the portfolio. Let's start in Copenhagen with our project at AB Indies Rivej 41. In the beginning, planned and decided for a multi-tenant transformation, but with a 15-year lease with per-hours left turned into a single-tenant building. 24,000 square meters, investment 231 million, and yield on cost a bit above 6%. Completion is planned to February 2026. The large project at Amfetrite 1 in Malmö has started off really well, a bit about 20,000 square metres for Malmö University at a 10-year lease. We have started at site with deconstruction and during September we got the building permission from the municipality. Completion is planned to Q4 27 and procurement will be completed shortly. In Malmö and Hylje, we continue with Black Hornet 1 Vista, an 884 million investment. The mobility hub has already been completed and the office will be completed in Q1 26 and during 26. Yield on cost 6.2% and today approximately 40% pre-let. The best possible product and low competition from New Build in the area, but we still need more activity and more decisiveness from our customers before we are satisfied. An example of top-level refurbishment in Malmö is Börshuset 1. This is an almost iconic building right beside the train station. 6,000 square meters offices, restaurant and co-working and absolutely top rents in a Malmö perspective. Completion in Q1 26 and moving in will continue during 26. Pre-let 95%. At Kranen 7 in Malmö, we will invest approximately 136 million in a preschool for the municipality. 2,900 square meter zoning plan approved and completion is expected to Q3 27. Public Procurement Act starts now. And at Sunnano 1254, 17,000 square meter logistic, 100% pre-let in a 15-year lease will be completed 1st of December 25, 280 million investment and yield on cost close to 7%. In Lund, we are building a new modern office right beside the central station post-Tornet phase two, 10,100 square meter yield on cost 6.5% and completion Q2 26. Pre-let a bit above 40% today, but together with ongoing discussions, I believe we can reach approximately 70% before year end. Keep our fingers crossed and very attractive product. And at Vätet 1, also in Lund, we continue with refurbishment and adding on areas for our new tenant arm. 5,700 square meters and a seven-year lease. Investment 145 million, excluding value of the land, and yield on cost a bit above 10%. And over 6.6% yield on cost, including ingoing property value. In the southern part of Lund, we continue to develop of Tomaten, this product for BPC, completion Q2 26 and investment 79 million, 3,600 square meters and yield cost 7%. Next to that, at former Stora Robby 32.22, now named as Surkolen 1, we have been able to improve since the project started. Tenants will be both note and Lund University. So well-used land area and long leases in total 14,500 square meter completion in Q2 for note and Q4 26 for Lund University. Investment 260 million and yield on cost 9.2%. In Hörsholm, Copenhagen, we invest in a new school for NGG, 25-year lease, 11,600 square meters, and investment 390 million Swedish kronor. Completion in Q1 2016. And at Giroströget in Höje-Torstrup, the refurbishment for Novo continues. 62,000 square meters. Our investment is limited to 423 million. And completion is expected in Q126. But Novo also pays rent during the refurbishment period. That was some of the ongoing project and just a touch on future possibilities as a repetition. Four possible projects in Lund and Helsingborg. Here we can develop some 70,000 square metres in the future. Zoning plans are approved for the first three projects and ongoing at Västerbro in Lund. And some of the office possibilities in Malmö in the area of Nyhamnen and Dokkan. High interest for the future, of course. If you should ask me which project of these will be the next one, my best guess today is that will be none of these. The EDM site in Lund is developing very well, and we have building rights there that might be of high interest for the growing defense and tech industries. Early volume studies have started, but nothing I can show yet. And a summary of Q3 again. Rental income up 6%, income from property management plus 11%, net letting positive, net debt to ABTA at 10.3 times, and good access to financing. And we will continue with a focus on cash earnings and future growth. We have been able to grow every year during different economic environments since 2005. We know how to adapt, find new ways and will continue with this knowledge and ambition. Growth and cash flow is our passion and the compound interest effect of stable growth is hard to beat. from 7 to 63.5 billion without any new equity from our shareholders. We have been able to grow thanks to continued investments. They contribute to upgraded attractiveness and new demands. And what comes first, higher rents or investments, have no answer. But these factors have a relation. Here is a graph showing the market rents for prime offices in Malmö and our quarterly investments during the same period, from 2010 to present. The green bars represent our investment and the green line represent rent levels. And finally, a market outlook. Employment growth in our region continues. Office rents show long-term growth. Billboards project investment increase over time. Tenants on average stay in the premises for 14 years, which support the strong customer satisfaction score. And if we just take the largest leases we have signed, we have a volume of some 320 million moving in from now till end 27. And during the same period, terminations of some 190 million. A good gap. So possibilities for growth is in sight. And with that, we are open for questions.