Wihlborgs Fastigheter AB (publ)

Another year comes to an end, and we can conclude that despite limited support from the economic climate and with the rental market that has remained a bit slow and cautious, we have once again delivered growth across almost all key metrics. Vacancy has also increased slightly, but we have higher rental values, higher rental income, higher operating surplus, higher income for property management, and property values have all strengthened once again. This marks 20 consecutive years of growth, a track record we are fully committed to continuing. And I claim that our region has never been more positively perceived than it is today, which makes me generally excited about the years to come. Let's go to our report. We start with a summary of the last quarter, October to December. Rental income up 5%, a new record at 1,111,000,000. Income for property management plus 23%. And excluding revaluation from joint venture plus 8%. Net letting positive at 12 million. Net debt to EBITDA at 10.4 times. We have good access to financing. And as I said many times before, but this still stands. Demands remains for good quality and good locations. And our tenants are willing to pay for that. And we are proud to be able to continue with our project investment that gives continued good potential for growth. The board proposes a dividend of 3.30 krona per share. Looking at the full year 25, rental income up to 4,354,000,000 plus 4%. The operating surplus increased also with 4% to 3,107,000,000 and income from property management increased by 14% to 2,038,000,000 or 11% excluding joint venture revelations. The result for the period amounts to 2,220,000,000, corresponding to 7.22 krona per share, and EFRA NRV has increased by 10% to 99.36 krona per share, adjusted for paid dividend. A comparison of rental income for year 2025 and 2024. Indexation gives plus 41 million, acquisition plus 132 million, currency effect minus 33 million, additional charges plus 37 and completed projects, new leases and renegotiation plus 3 million. And here is included higher vacancy as well as higher property tax of approximately 20 million plus 53 million from new projects and plus 20 million from new leases in the existing portfolio. And the net letting is positive again, plus 12 million in the quarter, plus 77 for the full year, and in total new leases at a yearly value of 399 million signed for the year. For being a last quarter, the volume of new leases of 92 million is good, and a large amount have lease commencement during first half of 26 or in the fall for Skråbets 6 in Malmö. 43 quarters in a row with positive net letting, but let's not take anything for granted. A quarter is a short period, but looking over time, I'm very proud of how we have found good opportunities over the past years. Here are some of the tenants that we have signed during Q4. A combination of headquarters, defense development, industrial and governmental tenants as examples. New tenants, expanding tenants, but also Ericsson with no change in areas and thereby not included in the net letting, but still very important for us. Six additional years, a bit higher rent and a small investment for improvements in the property, approximately 1,650 kronor per square meter. Here we have the net letting in a historical perspective. Lettings in green, terminations in light blue and dark blue stacks are the net letting. We don't win every lease opportunity, which is annoying, but we think the hit rate is quite okay. On the list are 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 and the public sector contributes with 22% of total rental income. Rental value as of 1st of January 26 is 4,990,000,000 per year plus 7.4% and rental income 4,405,000,000 plus 6%. Strong figures, and this is an effect from acquisitions, indexations, investments, and tenants willing 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% and rental income is up 0.8%. It's good with the growth, also in the like-for-like stock, but to get the growth we aim for acquisitions and investments will continue to be important, especially in times of higher vacancy. The growth in rental value is supported by indexation of 0.9% in Sweden and approximately 2% in Denmark taking effect this year. Changes in market value of our properties. We started the year with 59,168,000,000, accordance with the external valuation of 100% of our portfolio. We have made acquisitions, which add on 2,604,000,000. Investment, 2,738,000,000. Divestment, minus 156. Changes in valuation. plus 859, and together with currency translations of minus 799 million. That's summarized to a value of 64 billion, 440 million Swedish krona. Our external appraisers, one in Sweden and one in Denmark, they value 100% of the portfolio as of year end. No cherry picking. A bit higher valuation yields for Swedish offices market and a touch lower for industrial. The growth come mainly from investments and new leases. Here's the long-term trend for our portfolio growth from 7 billion to 64 billion in 20 years and growth every year without taking in any new equity from our shareholders. And these figures shows the running yield. It shows how we actually perform in relation to the valuation. So not valuation yield. For the whole portfolio, the occupancy rate is 90% excluding project and land, and with an operating surplus of 3 billion 304 million that gives a running yield of 5.5%. In the project volume, now BlackHoleNet is included with a quite high volume of new areas, but not completed yet. Fully let, the portfolio would give a running yield of 6.3%. Good earnings capacity in relation to the value of the portfolio and good cash flow generation is the foundation also ahead. Compared to a year ago, the occupancy rate is down 0.3 percentage point, but we see areas which have improved, offices in Helsingborg, for example, and everything points in the direction that rental income will improve further during the year. In the office portfolio, the market value is 50 billion 401 million with an occupancy rate of 91%, 91% in Malmö, improved to 90% in Helsingborg, 90% in Lund and 91% in Copenhagen. The operating surplus from offices summarized to 2 billion 731 million and running yield of 5.4%, 6.2% fully let. And the demand for logistic and production continues to be good, in Malmö especially, with an occupancy of 94% for us, a lower occupancy in Helsingborg at 83%, 91% in Lund with a small portfolio, and 96% in Copenhagen. 86% occupancy rate as a whole, with a running yield of 6.2%. A total value of 9,181,000,000. And as mentioned before, we continue to see harder competition in the third part logistics segment with quick changes in need. And that also means that occupancy can improve quickly when market has new needs. As mentioned before, I assume that vacancy in the southern parts of Helsingborg will be a bit sticky since the area will go through a makeover and that will take a number of years. But once again, let's remember that even if the vacancy is high, the running yield of 6.3% is decent, especially in location where the market as such continues to be interesting. The development of our total portfolio's running yield, 5.5%, brings stability, not least since the portfolio overall has a high quality and good location. And as noticed before, a good increase of the running yield since 2021. And some follow-up on the sustainability metrics. This is some of our overall goals for 2025. We managed to reach over 90% certification in the office portfolio in Sweden a bit ahead, and we have continued with the rest of the portfolio. Evaluation of suppliers have not reached the 100% goal, since there are always a few on their way in, but we will continue to improve. Carbon dioxide emissions from scope 1 and 2 now at 0.93 kilograms per square meters. And energy use 76 kilowatt hours per square meters below the target of 85. New goals have been set for 2026 and forward. More on that topic in the next report. But also some sustainability highlights from Q4 25. Our project at Vätet 1 in Lund, for our tenant Arm, is the first project to be certified according to an updated manual, Meliöbyggnad 4.0 Renovation, and reached the highest level gold. And let's remember that every upgrade of the manual makes it more difficult to be certified. The demands increase for every update. In Malmö, we have installed charging infrastructure for heavy-duty traffic for one of our tenants, And we continue with our energy efficiency improvements. And yes, you can find the Janus solution among them. So minus 50% at energy use at Syre 3, minus 27% at Cylinden in Helsingborg and minus 10% at Kranen 8 in Malmö as examples. A catalogue of our value and properties in our four cities ends 25, 90, no, 39% of the value in Malmö, 23 in Helsingborg, 17 in Lund and 21 in Copenhagen. The region, and especially these four cities, continue to be of high interest for future growth, both regarding population growth, which will be a challenge in many places, and regarding the number of workplaces, which is important for us. supported by Danish infrastructure and a young and well-educated population in Sweden. And time for financials. Over to you, Arvid.

Thank you very much, Ulrika, and good morning, everyone. Looking at the Q4 income statement, as Ulrika mentioned, rental income during the quarter amounted to 1,111,000,000. uh up five percent and actually a record figure for a single quarter when it comes to rental income uh operating surplus was up three percent to 773 million and income from property management was actually also a record for a single quarter at 556 million however as Ulrika mentioned that number was affected by a positive revaluation within one of our JVs of 68 million. So the growth of 23% in income from public management, excluding the JV revaluation was plus 8%, which in my opinion is also actually quite a good figure. We had positive value changes in the quarter of 444 million. and in total profit for the period of 850 million. On the next slide, you have the balance sheet as of year end 2025. Property value of 64.4 billion Swedish kronor, up 5.2 billion versus 12 months previously. Equities stood at 24.3 billion, up 1.2 billion. versus the year previously, despite paying almost a billion kroner in dividend during 2025. And borrowings increased by 3.2 billion to 33.2 billion in total. Looking at some key figures related to the balance sheets and the P&L, the equity assets ratio stands at 36.9%. as slightly down versus the previous year. And the LTV stands at 51.6%. I think you should bear in mind though, looking at those two numbers, that during 2025, we invested more than we have ever done in projects, 2.7 billion Swedish kronor. And we also actually concluded the largest single acquisition that we've ever done with a property value of 2.4 billion Swedish kronor. That is, of course, a way for us to continue to build for growth. And bearing that in mind, we are quite comfortable with those financial metrics. We're also happy to see that the interest cover ratio is now gradually strengthening and stands at a good 2.9 times. The APRA NRV as of year end is at 99.36 kroner per share, up 10% adjusted for the paid dividend during the year. The historic development of the APRA NRV you can see on this slide. And in the long-term perspective, since 2009, the annual average growth in APRA NRV actually is at 15% adjusted for paid dividends. On the next slide, you can see the long-term developments of the financial metrics, equity ratio, LTV, as well as interest cover ratio. And as I stated before, in relation to the targets we've set for ourselves, we are at comfortable levels. And particularly, I would like to stress that the interest cover ratio is improving at 2.9 times. That is a good reflection of our ability to generate a good cash flow. On the next slide. The earnings relative to borrowings or net debt to EBITDA now stands at 10.4 times. We are comfortable with the ratio. It has gone up slightly during the year, basically due to, as I've stated before, high investments and debt financing of the acquisition made during 2025. On the next slide, you can see the sources of financing, total borrowings of 33.2 billion. Half of it comes from bilateral bank agreements with Nordic banks, 33% from the Danish real mortgage system, and 17% from the bond market. Excuse me. Nordic banks are still very much willing to lend and the terms are probably unchanged over the past few months. But access to financing from the banking system, I would say, is good. The bond market is also both active and attractive. We have, over the past few weeks, issued a three-year bond under our own MTN program at a margin of 98 basis points and a four-year bond at a margin of 117 basis points. And for us, those are competitive levels. Looking at the structure of our loan portfolio, you can see the details on this slide. The average interest rate stands at 3.25%. That becomes 3.29% if you include costs for unutilized credit facilities. With a stiber at basically 2.0% and a margin of 3%. an average margin in our loan portfolio of a touch above 100 basis points. You could see that the loan portfolio is pretty much, we're paying what the current market rates actually is, or pretty close to it. We have an average fixed interest period of 2.7 years, an average loan maturity of 4.7 years in the loan portfolio as of year end 2025. And on the next slide, you can see the historic development over the past five years of the fixed interest period and the loan maturity. And there are no dramatic changes in the development of those numbers over the past few quarters. Lastly, on the number crunching slides, we can look at available funds that is unutilized credit facilities plus liquid funds as of year end, which stands at 3.2 billion Swedish kronor. And that gives us a good flexibility to seize potential opportunities in the market. And you can also put into perspective the 3.2 billion is that we have bond maturities in Q1 of approximately 1.2, but we've also issued bonds amounting to approximately 1 billion since year end. So with that, I'll hand the word back to you, Ulrika.

Thank you. And I'll give you an update on our investments in progress and a quick overview of our largest project. During 2025, we have invested 2,738,000,000. It's still a record. And it remains 2,144,000,000 to invest in approved products. Highest investment level ever in our history. And this makes us prepared for coming years. A reasonable yield on costs with 6% or a bit over 6% for new build offices and 7% or a bit above that for industrial. and a good mix of refurbishment and new build in the portfolio. In Copenhagen, we're about to complete our project at AB Industrivet 41 for Per Årslev. In the beginning, we planned this project for a multi-tenant transformation, but with the 15-year lease with Per Årslev, it has been turned into a single-tenant building. 24,000 square meters, investment 231 million Swedish kronor, and the yield on cost a bit above 6%. Completion now in Q1 26. The large project one in Malmö for Malmö University is running well in accordance with plans. A bit above 20,000 square meters for Malmö University in a 10 years lease. Investment 1,130,000,000 and completion is planned to late Q4, 27. In Malmö and Hylje, we continue with Blekhornet 1, Vista. 884 million investment. The mobility hub has already been completed since a year ago and the offices will be completed from now and during 2026. Yield on cost 6.2% and approximately 40% pre-let. The attractiveness of the product shows clearly now when tenants are starting to move in and we work hard at the coming leases. From 1 January, the total areas in the building are included in Malmö offices and classified as projects, since the areas are not ready for moving in yet. Still too much raw concrete, but completion is ongoing. Last Friday, we opened Börshuset in Malmö after the large refurbishment. It's an almost iconic building right beside the train station. 6,000 square meters offices, restaurants and co-working and top rents in a Malmö perspective. Completion now 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 meters zoning plan approved and completion is expected to Q3 27. Public procurement act for the contractor is ongoing. And at Skrovet 6 in Malmö, we refurbished 11,000 square meters, 50% pre-let to Cloetta and Media Evolution, with completion start in Q3 26. So a quick refurbishment. Investment 149 million for a total technical shift in the building and a quick change from the quite closed building, which was a result from the Saab, the former tenant. and now open up to be a new entrance to the whole Dokkan area. In Lund, we're building a new modern office right beside the central station, post-tonet 1, phase 2. 10,100 square meters, yield on cost 6.5% and completion starts in Q2 26. Pre-let 70%, a very successful project. In the southern part of Lund, we continue the development of Tomaten. This project is for BPC, completion Q2 26, and investment 79 billion, 3,600 square meters, and the yield on cost 7%. And next to that, at former Stora Roby 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 meters completion in q2 and q426 investment 260 million and yield on costs 9.2 percent in harsholm copenhagen we have invested for a new school for ngg 25 years lease 11 600 square meters and investment 390 million swedish krona Completion now in January. The refurbishment for Novo continues. 62,000 square meters. Our investment is limited to 423 million. And completion is expected now in Q126. But Novo pays rent also during the refurbishment period. That was some of the ongoing projects and just a touch of possible future projects. Here are four possible projects in the Nyhamnen area in Malmö. We own the land for Kranen 15, Slakthuset and Polstjärnan 1 and 2. Zoning plans are ongoing and we actually see some progress. And some more possibilities in Malmö, both the industrial at Spännbukland, for example, housing at Kranen 5 and offices at Naboland. Zoning plan approved for Spännbukland and Naboland. In Lund, we continued the work in the southern part, at Hasslanda, where we bought Brysselkolen. We bought it in 2025 from Gerritor. Approximately 50,000 square meters gross floor area. And at the Dén area, we can continue with projects both at Idén Torget and Delta 2. And we also have more building rights at the eastern side of the highway. At Västerbro in the western part of Lund it will be mostly housing and one way for us is to use these building rights as a trade for other possibilities. And in Helsingborg we can add on areas for offices at Polisen and several industrial and logistic possibilities both as fill-in and standalone projects. It's very important for us to be ready for different kind of times and tenants and I think we have very good opportunities. So let's summarize Q4 once again. Rental income up 5%, income from property management plus 23% and excluding revaluation from joint venture plus 8%. Net letting positive at 12 million, net debt to EBITDA at 10.4 times. So we see continuously good access to financing and the board proposes a dividend of 3.30 krona per share. And it goes without saying, we will continue with our focus on cash earnings and our future growth. With that, we are open for questions.