Wihlborgs Fastigheter AB (publ)

Welcome to the presentation of Billboard's first three-month report 2026. Growth, cash flow, and core business is our mission. And even if the world gives us some challenges, our religion continues to deliver. Net debt to every DA at 10.5 times, good access to financing continues, and we have acquired our first premises in Karlsruhe in Copenhagen. And with some figures on that, the rental income was 1,150,000,000, a new repper. The operating surplus, 800,000,000. And income for property management, 520,000,000. The results for the period increased to 548,000,000 corresponding to 1,78,000,000 per share. And EFRA NRV has increased by 10% to 101,14,000,000 per share adjusted for paid dividends. A comparison of the rental income Q1-25 and Q1-26, indexation plus 13 million, acquisition plus 46 million, currency effect minus 12, additional charges plus 23, and completed projects, new leases, and renegotiation plus 35 million. And the net lending was negative with minus 35 million. the first negative quarter after 43 quarters in a row with positive numbers. New leases of 49 million and terminations of 84. Even if every single termination is a loss, the volume of termination as such is close to last year and no drama in that, but the amount of new leases in Q1 are too low to meet that. The year started quite slowly, picked up a bit, but then When the war in the Middle East was a fact, all discussions were pushed forward. Over 50% of the terminations was in Denmark, and we know that the market there is quite strong, so I expect that we will see a pickup. We also had 8 million in Sweden from bankruptcies that affected the result with minus 1 million, but terminations had a yearly rental value of 8 million. Now, in April, things have changed, and I think the list of possibilities and the ongoing discussions actually are quite good. That doesn't mean that things will be easy ahead, and I cannot promise positive net listings the coming four to three quarters, but at least we have a number of good discussions ongoing. Here are some of the tenants that we have signed during Q1. The defense industry, which, for example, the new and expanded lease with Mildef, It's a growing sector, and we also see some examples of interesting and growing tech companies like Intermail, and the tech hub Hedge in Helsingborg also continues to attract innovative AI companies. Here we have the net letting in a historical perspective. Lettings in green, terminations in light blue, and dark blue stacks are the net lettings. We don't win every lease opportunity, which is annoying, but the hit rate over time is good, and let's see how we can develop this further on. And the list of our 10 largest tenants in alphabetic order, strong customers, and they contribute with 90% of rental income, 7 out of 10 of governmental tenants, and the public sector contributes with 22% of rental income. The rental value at the first of April 26 is 5,157,000,000 per year, first time over 5,000,000,000, plus 11.6%, and rental income 4,543,000,000 plus 10.3%. Strong figures, and this is an effect of acquisitions, indexation, investments, and of course tenants willing to pay for the right quality. Looking at the like-for-like figures, the properties were only a year ago, excluding projects compared with updated figures, we can see that rental value is up 2.2% and rental income is up 1.1%. Like-for-like does not include the large acquisition we did 1 April 2025. As said last report, It's good with the growth also in the like-for-like stock, but to get the growth we aim for, acquisition and investments will continue to be important, especially in times of higher vacancy. Changes in the market value of our properties. We started the year with $64,440,000,000 in accordance with the external valuation of 100% of our portfolio. We have made acquisitions, which add on $534,000,000, investments $562,000,000, divestment minus 4 million, changes in valuation plus 19 million, and together with currency inflations of 170 million, that's summarized to a value of 65,642,000,000 Swedish krona. Valuation parameters haven't changed since year end, and that includes assumed indexation of 1%. So very small changes in valuations. The growth comes mainly from investments and the transaction we made in Copenhagen. There's a long-term trend for portfolio growth from $7 billion to $65.6 billion in 21 years and growth every year without taking in any new equity from our shareholders. 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 90%, excluding project and land, and with an operating surplus of 3,356,000,000 that gives a running yield of 5.5%. For the next, 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. The occupancy has improved in some areas and lost a bit in others. What we know is that of the total vacancy, approximately 40% are already signed but not entered yet. And for additional 6% of the vacancy, we have ongoing discussion with possible tenants. So a lot of positive work in that. But we will also add on vacancy from terminations. Additional new-built projects will move from the project line to the running portfolio line. and possible transaction may also affect vacancy. So no exact guiding ahead. But I expect occupancy numbers for the portfolio to be relatively flat next quarter, but with somewhat increased income for the base rent figure. Parking and additional charges may vary. In the office portfolio, the market value is 51,451,000,000 with an occupancy rate of 90%, 90% in Malmö, continue with small improvements in Helsingborg to 91%, 89% in Lund and 91% in Copenhagen. The operating surplus for offices summarized to 2,781,000,000 and a running yield of 5.4%, 6.2% for the desk. The logistic production portfolio has a value of 9,315,092% occupancy in Malmö, 83% in Helsingborg, 95% in Lund and 97% in Copenhagen. In all, 88% occupancy with a running yield of 6.2%, 7.3% all elect. 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. As noted before, a good increase of the running yield since 2021. Some sustainability highlights. We have improved from zero to 35% certified area in our Copenhagen portfolio within one year, and there is more to come. We have also new sustainability targets from 1st of January, and will report on a wider spectrum with focus on energy efficiency, carbon dioxide emissions and permit adaptation, as well as important social and governance measurements. More on that topic in the report, but I'll show you some figures here. It was a cold start of the year, but to be able to compare how we improve our energy use, we also present figures normal year corrected, and of course also in kilowatt hours per square meters. You can see the improvements quarter by quarter and year by year. We present the carbon dioxide emissions from Scope 1 and 2 in the same way. We have higher emissions in Q1 according to more gas used in Denmark during this period of energy uncertainty in the world. We also compare energy production from solar cells, and not at least we have a new goal till 2020 to replace refrigerants in our cooling systems to more environmental neutral gases, and this work continues. The catalogue of our value and properties in our four cities and Q1-26, 38% of the value is in Malmö, 23% in Helsingborg, 17% in Lund and 22% in Copenhagen. Commuting across the Eurozone straits continues to increase and the entire region benefits from the fact that Sweden and Denmark complement each other's economic cycles. The increased focus on defence and resilience also contributes to investments in the region, not only correlated to industries such as Saab and Mildef, but also due to the fact that 90% of imported food to Sweden passes through our region. That means that Sweden depends on the infrastructure in the region, and harbors, highways, railways, and of course the Öresund Bridge must be in good condition and well protected. The region as such benefits from that also in a long-term perspective. During the first quarter, we have acquired 10,300 square meters office and retail in Karolinehus in Karlsbergsbyn. Property value of 370 million Danish kroner and location that is attractive both for living and working. A high density close to the city center, interesting mix of older refurbished building and new built. And as we see it, potential for growth rent in the area. and time for financials. Over to you, Arvid.

Thank you very much, Ulrika, and good morning, everyone. If we look at the income statement for the quarter, Ulrika has touched upon the figures already, but I would like to highlight that the rental income of 1,150,000,000 is actually a record for the fourth quarter in a row when it comes to rental income in an individual quarter. up 10% versus the same quarter, 2025. And as we write in the reports, we had a positive one-off effect of 15 million coming from a terminated lease in the Danish portfolio, which was settled with a so-called termination fee. But nevertheless, we had a good growth of 10% of the rental income. The operating surplus amounted to 800 million, up 9%, and that is despite, as you can imagine, having higher costs for snow removal and for heating during Q1. For those of you living in Sweden, you know that the winter was colder and longer than most winters, not least so here in southern Sweden. Income from property management amounted to 520 million, which is up 12% versus the same quarter previous year. Value changes in the property portfolio were basically flat, plus 19 million. so no big changes at all, and the underlying assumptions, as Ulrika mentioned, was also basically the same as at year end. We had positive value changes in our interest rate derivatives portfolio, plus 191 million, and in total, a profit for the period of 548 million. On the next slide, looking at the balance sheet, investment properties versus 12 months previously went up by 6.5 billion Swedish kroner and stood at 65.6 billion in total. Is the presentation of the slides working or not?

Not sure.

Let's see if we can get a signal from somebody, if the slides are visible. Looks okay over there.

Yes, it is.

Okay, we'll carry on. Equity, end of March, stood at 24.9 billion Swedish kronor, up 1.4 billion versus 12 months previously. Then we, of course, during that period, paid almost a billion Swedish kronor in dividends. The borrowing stood at 34.2 billion, up 5 billion versus 12 months previously. And as you remember, we have acquisitions of approximately 3 billion during that period, and also we've had a high investment level in our project portfolio. Moving to the next slide, looking at our key numbers, the equity assets ratio now stands at 36.8%. The LPV has gone up slightly to 52.1, and the interest cover ratio continues to be at a strong level at 2.9 times. Looking at per share numbers, the APRA NRV at 101.14 per share, which adjusted for paid dividend is up 10% versus 12 months previously. Looking at the next slide, the long-term development of APRA NRV is visible on this, in this graph, and the average annual growth still stands at 15% adjusted for dividend so a strong long-term growth trend in EFRA NRV. On the next slide, you see the long-term trend for the other financial ratios that we continuously monitor. On the left-hand side, you see the interest cover ratio, and as you remember, it was on extremely high levels during the zero interest rate period 2019, 2020, 2021. But the 2.9 times level where we are currently is well above the long-term goal or the goal that we have of a minimum of 2.0 times. On the right-hand side, you can see the equity assets ratio well above our threshold of 30%, stands at 36.8% currently, and the loan-to-value, is well below our limit of 60% at 52.1. On the next slide, you can see our net debt in relation to EBA. Also there, we have a long-term stable development. This ratio now stands at 10.5 times. And we think it's a very relevant number since it reflects the cash flow that we actually generate in our core business. On the next slide, you can see our sources of funding as of end March. Half of our funding comes from bilateral bank agreements with Nordic banks, 16% from the bond market, 34% from the Danish real mortgage system. The bond market is, of course, more sensitive to the geopolitical development than the bank market is. But I would still claim that the bond market works in a quite okay way. Also, over the past month or so, the beginning of the year, the bond market was actually quite strong. And we issued some new bonds in January, beginning of February. on attractive levels, I would claim. Ongoing discussions with our banking relationships tells us that the banks are continuously willing to lend money, so positive sentiments from that front, and the Danish real mortgage system, I would claim, has a stable positive development as always. On the next slide, you can see the structure of our loan portfolio with lots of details. The average interest rate that we're paying currently is 3.21%, 3.24% if you include the cost of committed credit agreements. This means that our marginal cost of debt is actually pretty close to the average cost of debt that we're paying currently. On the next slide, you can see the development of the fixed interest period, which now stands at 2.6 years, and the average loan maturity, which stands at 4.8 years. No drama in the development of these. and we continue to work according to our financial risk management policy. On the next slide, you can see the development since 2019 of available funds, currently 2.6 billion Swedish kronor, which gives us day-to-day flexibility to manage our operations in a good way. And with that, I hand the word back Thank you.

And I'll give you an update on our investments and progress and a quick overview of our largest project. During Q1, we have invested $562 million, and it remains $1,738 million to invest in approved projects. We continue to expect yield on costs at 6% or a bit over 6% for new build offices and 7% or a bit above for industrial projects. and a good mix of refurbishment and new build in the portfolio. Let's start with projects soon to be completed. In Malmö and Hylje, we continue with Letthornet 1 Vista, an 884 million investment. The mobility hub was completed M24, and now the first tenants are in place. One newly signed in Q1, but we work hard for the next ones. Yield on cost 6.2% and approximately 40% pre-let. From 1st of January, the total area and the building are included in Malmö offices, thus classified as project. And during Q2, we will count the project as completed, even if adaptations for tenants will continue, of course. In Lund, post-tornet phase 2, a new modern office right beside the central station will also be completed in Q2, but moving in continues rest of 26. 10,100 square meters, €448 million. yield on cost 6.5%, a very successful project. In the southern part of Lund, we continue the development of Tomaten. This project is for BPC. It will also be completed in Q226, and we invest $79 million, 3,600 square meters, and yield on cost 7%. And next to that, at Supercalling 1, notes have started to move in, and Lund University will move in in Q4. well-used land area and long leases in total 14,500 square metres, investment 260 million and yield on cost 9.2%. The large project at Banff East, the one in Malmö for Malmö University, is running well in the Cordesworth plan. A bit above 20,000 square metres for Malmö University at a 10-year lease. Investment 1,130,000,000. and completion is planned to late Q4-27. Discussion is ongoing regarding a possible prolonging of the lease to 20 years, both positive and possible. As Charnel 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 still ongoing. And at the Skrova 6 in Malmö, we refurbish 11,000 square meters. 50% is pre-let to Cloetta and Media Evolution, with completion starting Q3 26. Investment, 149 million for a total technical shift in the building. and a quick change from a quite closed building facade, and now open up to being the new entrance to the Dokkan area. Good interest from tenants, and several ongoing discussions. A new project in Helsingborg at Norsköpen 20, where we invest for our tenant Mildef, a combination of refurbishment of an existing vacant building of 2,400 square meters. We have new built 3,400 square meters, and adding on the existing lease of 4,400 square meters. So, in total, 10,200 square meters and 97 million investments, including value of the land. Yield on cost, 7.2%, and completion in Q3-27. And a new project started at Sunnanå, 12-26. It will be a mix of tenants and a flexible building for small industries, logistics, It's a good product where we have very low vacancy in Valmö. We left 30% to one tenant, investment 87 million, and completion is planned to Q4 27. That was some of the ongoing projects, and just a touch on future possibilities, just as a reminder that we always look for new opportunities and are ready to start when we think the timing is right. Here are some office possibilities in Malmö in the area of Nyhamnen and Dokkan, where we continue to work with the zoning plans. High interest for the future, of course, and even if the figures on gross floor area are estimated, the volume are interesting as a part of the other development in the area. And four other possibilities in Malmö. Industrial at Spänvotland, research and offices at Mediel site, housing at Kranen 5 and offices at Marvola 3. In Lund, we continue to develop the land at Brysselkålen in the southern part of Lund. At the Ideal site, we have three project possibilities for offices and laboratories, two of them on these pictures, Ideal Torget and Delta 2. And at Vesterbro, the work with the zoning plan continues. In Helsingborg and Landskrona, we also have a mix of different possibilities, and the main part is in the logistic and industrial segment. And just a summary of Q1 again. Rental income up 10%, operating surplus plus 9%, income from property management plus 12%, negative net letting minus 35 million, net debit to FTA at 10.5 times, We see good access to financing and we continue to grow this quarter and acquisition in cost by soon. And it goes without saying, we continue with our focus on cash earnings and our future growth. And with that, we are open for questions.

If you wish to ask a question, please dial pound key five on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial pound key 6 on your telephone keypad. The next question comes from Tobias Kaj from Nordia. Please go ahead.

First question regarding the EU income in Q1 in Denmark. How large was the annual rental income in that contract and did that already impact the occupancy rate in Q1 or will we see the effect first in Q2?

I think if I have that number off the top of my head. It relates to Sotomayor Survey, where ATP has left the building, so it is vacant currently. I don't have the annual rental income off the top of my head, but giving a bit more flavor of what... The way it works in the Danish market is that When a tenant terminates a lease, they're obliged to restore the premises to the shape that the premises were when they moved in, which basically means that when a tenant leaves, you end up in a negotiating position to see how much should they actually pay to restore the premises to the original shape. And it's that type of payment that these 50 million Swedish kronor relates to in this quarter.

Okay, I understand. Thank you. Also regarding the... General occupancy rate, I think you previously have said that you expect some improvement during this year, and you're right in the report that 14% of the vacancy is already pre-leased. Does that indicate that we should expect roughly a one percentage point increase in occupancy rates during the remainder of the year, or will it take longer time to see that positive effect?

You should not expect that. It's too early to say that because we also have terminations, of course. So what I see now is that we will be quite flat until Q2, and then it depends on what will happen with project completions and terminations ahead. But I definitely see, as we have also noticed before, that the rental income continues to increase.

Yeah, okay, thank you. Regarding your interest expenses, How much do you capitalize related to project and should we expect a significant increase in coming quarters as you expect lots of projects both in the first quarter and in the second quarter?

Nine million Swedish kronor were capitalized in interest in the first quarter this year. And given that the project volume was very high during 2025, and it will still be high in 2026, but probably not as high. I wouldn't expect that number to go up.

Okay, thank you. And the final question, I think you have a swap contract of 1.25 billion with very low interest rates that matures during this year. Is that like one contract in one single quarter or will it be a gradient effect?

It's spread out over Q2, Q3, Q4. It's not one contract.

Okay, perfect.

Thank you very much for taking my questions.

Thank you. Thank you.

The next question comes from Lars Norby from SEB. Please go ahead.

Good morning. I'm looking at that left-leaning chart, page 7, looking at the termination volumes, which is, as I think you pointed out, quite similar to the past few quarters. It's more an issue of I guess the amount of leases signed during the quarters that haven't been high enough to get a positive figure. But just on the termination figures, can you mention, are there any individual contracts of size that you can mention in any so far? In that case, where geographically?

We have two leases with... Postnord, one in Sweden of 2.5 million, and one in Denmark of... I think it was 7 million or something.

6-7 million Swedish kronor.

In Denmark. No, 4 million in Denmark. So in total, 6-7. And we have Alstel here in Malmö with minus 7 million. And then just... a few on minus 2 million, so nothing really large or something like that. But what we see is that the large portion of these smaller leases that always is a great motor in the business during Q1, the cautiousness was very everybody was very worried about what will happen, and we really saw that in the discussion, so we missed that volume in the new leases.

On the termination side, Rick also mentioned it during the presentation, but we had tenant bankruptcies, a few different, not one big one, but those bankruptcies... have an annual rental value affecting the net lettings of between 7 and 8 million Swedish kronor in the quarter. That does not mean that we have credit losses of that amount, but in the net letting figure, it affects the numbers negatively.

One more question. You mentioned here earlier on the call, I think, something along the line that after what happened in the Middle East, these discussions ongoing were prolonged or delayed. Have you had cases where the discussions have actually been terminated without having a signed contract related to what's happened geopolitically?

No, not what I can know.

And as I mentioned, I think that the list of ongoing discussion have increased significantly since February, March. So April and ahead looks quite decent, I would say.

Okay, thank you. The next question comes from Frederik Stensved from ABG Sundal Collier. Please go ahead.

Thank you very much. Good morning. I have three questions, if I may. First one is a follow-up to one of the earlier questions about the non-recurring item in Denmark. The way I understand the answer, Arvid, was that they moved out in Q1, but is this a large material lease in terms of annual rent? And if so, did they contribute fully throughout Q1 and then moved out in late March?

They moved out earlier, I think, in Q1.

four or something so this was just the negotiation about the termination fee that were decided during q1 okay very good very clear perfect second answer also i think pretty straightforward you talked about the bond market and the banking relationships, and they were still sort of eager to lend, et cetera. Have you seen any moves in terms of margins with bank discussions during these, call it, two months of geopolitical uncertainty and the general uncertainty in the market?

We haven't had any refinancing or new financings, so we don't have any, so to speak, hard evidence of the prices. But my take is that the bank margins during March, April have basically been stable. I have not gotten the impression that they have moved much over the past couple of months.

Very good, very good. Thank you. Then, last question. Of the project conclusions that you talked a little bit during the presentation, Ulrika, Blekhornet and Posthornet now completed in Q2. That's the way I understand it. At least Blekhornet, probably some move-ins already in Q1, and then some Q2, and then maybe Q3. How should we think about some of the contribution in q1 q2 will will will will the tenants that thing in q2 or or later and did they contribute anything to q1 at all yes we had contribution during q1 and we will see contribution during the autumn as as well but in a slower pace no no

large significant moment where things suddenly will contribute in a more smooth, I would say.

Okay. Is it similar for post-Zonet or is that more binary?

Post-Zonet has the largest contribution during Q2, but also during the autumn continues.

Okay, so a little bit in Q2 and then fully or 70% at least given the occupancy rate from Q3 and onwards. Okay, thank you.

We have something assigned for moving in Q4 as well in Vosselnest, but most of it is now in Q2.

Thank you. That's all for me.

The next question comes from James Cattell from Green Street. Please go ahead.

Good morning. I had a question on the EPPRO CapEx table on page 25 of the report. I noticed that 10 incentives have increased quite significantly by almost 100 million SEC versus the first quarter last year, and also on the unanalyzed basis was higher than four years 25. Is this going to be the runaway carrying forward for the whole of 26, or is this just due to some one-off items?

To be open and frank with you, James, predicting the split of CapEx into these different categories is not extremely easy. So the tenant adaptations or the tenant or what APRA calls tenant incentives will continue to be an important part of our capex because into that category falls a number of measures when we adapt premises to new tenants. And that will continue to be an important part of our ongoing business. But predicting the magnitudes of these different parts of our capex is still tricky.

Okay. Thank you.

As a reminder, if you wish to ask a question, please dial star 5 on your telephone keypad.

Are there any recent questions?

I have seen nothing arriving digitally. Okay.

There are no more phone questions at this time, so I hand the conference back to the speakers for any closing comments.

Okay.

Thank you for this, and of course, if you have further questions, you know, just reach out to us and we'll answer. So thank you for today.

Thank you, everyone, for listening in.