A very warm welcome to Atrium Ljungberg's head office in Sickla and to this Capital Market Day 2026. It's going to be a really exciting day. I'm absolutely sure of that. With us today, we have Erik, who I thought would present. You're going to keep us on track today, all of us who are going to talk so much. I'll certainly give it a try. I will. I promise. Thank you so much. Great to see everyone. Personally, I laid out two outfits this morning, a blue and yellow one, and a black one, so I could choose when I woke up and got out of bed. I didn't watch last night, but it was great that it went as well as it did. I can imagine some people are more tired than the rest of us. How many of you watched? Just so we know how many. Yeah, about 50%. That's impressive then. We'll have to do some jumping jacks at the end of the day to keep people awake. No, but it's a real honor, Annica, to stand here with you and a big part of the team. We'll be meeting a large part of the Atrium team. We'll also have some external guests joining us today. First of all, just so everyone is aware, the day will be filmed, just so we're fully transparent about that, and it will be available to watch afterwards. Yes, especially in English. There are some foreign investors who are a bit sad that we are doing it in Swedish, but we think it turns out so much better this way. Yes. The schedule for today looks roughly like this. There will be some flexibility in the schedule for anyone wondering, but we will get to meet a large part of the Atrium Ljungberg team. Annica will start with goals and strategies. Ted Lindqvist from Evidens will slip in at the back of the room, as Ted does when he is here. Welcome, Ted. We will hear about urban development. We will hear about project development. We will continue after the halftime break. Erik Skalin will take us through the demand situation in the rental market. For those wondering if you will hear anything about the Ericsson deal, the answer is yes. Annica will come back and talk with Erik about that, then CFO Anna Jepson will wrap up the day. Not wrap up the day, but try to translate what all of this means in numbers and what it means for Atrium. We will finish the program around 2:30 P.M. and keep you on your toes until then. Right? I hope so. My name is Erik Nyman. As Annica mentioned, I am the Head of Research at JLL when I am not standing here on stage. Really great to be here. I do not have any yellow or red cards except for my nice clothes, but I will try to help keep us on time. So if you see me waving like this, yeah, that means we need to try to speed things up a bit. Welcome, everyone. I will hand over the floor to you, Annica. You can take the baton. Thank you very much. Yes. The whole idea of this day is about deepening our business model. So you should have a much better understanding of what we really do during the day. Through our business model, to build an attractive city that creates value over time. If there is one thing I want you to have with you today when you leave here, it is this. Our day today too. The main issue with Ted, who comes from Evidens, will talk about the analysis based on the rental development going forward. We have added our analysis period to 2033 because that is when Ericsson has moved in. That is the basic idea. Today, we have a net asset value, SEK per share of SEK 54. If the Evidens model that goes into our materials and that the projects that we have planned, we will be able to deliver a net asset value of SEK 115 per share. That's an increase of 113% in seven years. There's incredible potential in this company. In addition, it means that we actually stick to our goal of 10% return on equity over time. It also means that we do not challenge our financial limitations based on a loan-to-value ratio of no more than 45% and an interest coverage ratio of at least two times. We also have our investments. Of course, that we stick to a dividend over time. Some of our shareholders are very happy to receive dividends. In this company, we have certain focus areas that you recognize, but I thought I would outline them a little briefly before my colleagues go a little deeper into this going forward. For our business model, sustainability is in focus all the time. We work with it fully integrated into our business, and we have done so for a long time, and we have come a long way. We have an overall goal that we will be net zero by 2040, and that is quite a long way in the future. Already now, for example, in the management portfolio, we have reduced climate impact by 37%. If you look from 2021 to 2025, we do a lot of things. Of course, we look at how we build and so on, but resource efficiency and circular use of materials, among other things, are very important from the outside when we build. One of the things that we are really good at is taking care of the old buildings, which are actually also very good from a climate perspective. We have nine categories, you could say, within our work on sustainability, and it is social sustainability that is also in focus, and it is coming Linus, our Business Development Manager, will dive deeper because this is also how we build an attractive city, a very important part of getting this robust city that feels good over time. Of course, we also work with sustainable corporate governance, so all these parts are important. If the strategic choices that I will then comment on, you recognize this being in strong sub-markets. It is a matter of which geographies we have chosen and where we are located in Sweden's four major cities, but where we are by far the largest in Stockholm. That we also work with a property portfolio that is a quality portfolio, but that we also have a lot of building rights that enable this investment of a total of SEK 40 billion over time. We will not do that until 2033, at least a bit on the way, that we should be a significant player. This means that we have large cohesive areas. These models that we are talking about, which you are welcome to look at, where we have Slussen, Hagastaden, Slakthusområdet, and the Sickla model, which is the largest model that is on the side where you are welcome to look at a little later to work with an attractive city. It's about the mix that we do, that it's both offices, retail, and housing. It's the service, it's the hotel, all these parts that we want. In a city that makes it feel lovely, the service, the coziest restaurants, all those parts. Of course, we are nothing without our customers. We want to be a strategic partner to our tenants. A few years ago, we had sold a property in the city, and then a couple of months passed, and then I got an email from a tenant who said, "Annica, now we have another landlord here. We are not nearly as satisfied anymore. Can you please find a new premises for us?" That's how we should treat our customers, that they even want to move to sit in our portfolio. We also do things in-house. For us, it is important that we have our own employees at all levels based on customer service. When it comes to our employees, we do it in different ways, but we have a very high level of commitment. We look at our AL perspective. We landed on 82 for our index, which is very high in terms of satisfaction, and it is the eNPS that many companies measure. Where Sweden's average is 20, we have 65, and it is a question of whether you can recommend your employer to someone else. We are extremely proud of that. That commitment and well-being means that you do a much, much better job during the day. I also want to point out that when we work in our steering group projects, that when we build our projects, we have all parts of the business represented. It is business developers, project managers, management, and also leasing, who together run the project from start to finish. I have slightly different intensities depending on what phase you are in, but it is to ensure that the project is good from all perspectives, and it is quite unique. I thought I would tell you a little about our existing stock. We have a new business area manager real estate who can wave a little. That started a week ago. If you had started a month ago, you might have been standing here. Our existing portfolio is the foundation of the entire company and is also important for being able to carry our projects forward at all. If we look at the distribution based on what the properties look like, we have our four parts based on the geographical, where Stockholm accounts for the largest share, and here it says 78%. That's because we've removed the project part. That's just pure administration. In Uppsala, 11%, Malmö, 6%, and Gothenburg, 5%. Then you can look at the distribution. In Stockholm, we have a very large proportion of offices, but also some retail. This is based on the property value, and then we are looking at if a property is predominantly office or retail, for example. Then the entire building is classified as one part then, while Uppsala, Malmö has a larger element of retail and housing. In Malmö, we have 325 homes. In Uppsala, 200, and in Gothenburg, it is almost exclusively offices. If you break down our Stockholm stock, it looks like this. Sickla is 31%, Hagastaden 26%, Slussen 18%, Slakthusområdet 6%, and then we have some other properties, 19%. Sickla is the largest part based on our Stockholm portfolio. We really have a quality portfolio, and that is important based on the fact that what we see on the market today, flight to quality is the absolutely most important driving force right now. I have some mood pictures, and mood from Moody's can also be talked about then, who just upgraded our property portfolio to an A to also show the quality we have in our portfolio. In Hagastaden, we own the Life City PV-palatset. For example, in Södermalm, we have three properties, the Seamen's Institute, the Glashuset, and the Katarinahuset with the Gondolen, and in the Slakthusområdet, the fantastic old properties where Universal Music Group has moved in, among other things. Uppsala, Gränby City, Malmö, and Gothenburg. Finally, a few words about what our portfolio looks like, and this is when you look at the Q1 numbers. We have put in the Ericsson deal to get a look at the contracted rental stock we have, and then we land at 58% offices. We have this breadth in our portfolio based on the fact that we are building a city, that there is a whole. The 10 largest customers would account for 28% of our contracted rental lease. There it is, land at 13% and SKH 3%. We have Atlas Copco as 2%. Still a good distribution based on the fact that we still have such a large customer. It also means that the average remaining contract period increases to six years, but that we have a 400 commercial contract. We have a proper breadth in our portfolio, which makes us less vulnerable anyway. I thought that was the introduction from my side, it is now that we come to a little bit of the main issue. You have to introduce that. I can certainly start over, we must make sure to keep the dialogue alive as best we can. A couple of questions from me, at least. Right. We must try not to steal anyone else's, then you'll have to say stop. We will come back to this discussion later. In this first slide that you showed, I know we won't talk so much about Uppsala, Malmö, and Gothenburg from now on today. This concentration that you see in the portfolio versus diversification, what are your thoughts on the portfolio's geographical composition at present? It's clear that we are heavily in Stockholm today, the SEK 40 billion we are going to invest is also very concentrated in Stockholm. Over time, the other areas will become smaller. With that said, there is no decision made that we will leave those sub-markets. Instead, we take it one step at a time, the other sub-markets also give us a good cash flow in the current situation. Is it even the case that you could imagine increasing your exposure to any of these? Well, considering that we have an investment rate of SEK 3 billion a year in our project development, that will be difficult. Mm-hmm. Speaking of project development, there is a lot on the horizon. We'll come back to numbers and other things later. How do you balance that matter if you think about project development and the management portfolio? How do you manage to keep focus, or how does the organization manage to keep focus? What will be your most important thing in this? I would say that is one of the important tasks that our management has, and my colleagues will also delve into that a bit, that we have a very clear three-year plan all the time based on the projects, how the management portfolio should deliver, and also based on our key performance indicators to keep track of this. We don't want to take too high a risk, but we want to be careful with our key performance indicators, and we want to ensure that we maintain our rating with Moody's. You have a 10% return target, or return target on equity or return on equity. What are the most important strategic issues for you? Leasing. Retaining customers. Leasing? I usually say the opposite to all employees every Friday or so. Retain customers, lease out. That's the most important thing we should work on. The job is done? Yep. If one may ask a slightly more personal question then. To lead a team like this, now you've been here for quite a long time, for a good while, starting to get more than comfortable in the role, one might say. Yes, you could say that. What are your biggest challenges as CEO at present? No, but yes. It is a tough market, and that reflects the entire industry. It's not just Atrium Ljungberg. It's clear that a recession for three years now, you start to get quite tired of that. That means it becomes extra hard work, and it always is. Leading in a bit of a tailwind, of course, that's easier, but then we have to gather strength together in the management team and take it step by step, and we celebrate the successes we have. We have celebrated the Ericsson deal quite a lot, I can say. Several times a week. At least on three occasions. Yes, great, Annica. Thoughts, questions? Lars? Thank you very much. Lars Norberg, SEB. I'll hook on to your question about geographical footprint, and then I'll connect it to, of course, the Ericsson contracts and that it is, what is it, SEK 6.2 billion CapEx that lies a bit ahead and so on. In what way, if any, does that affect your plan or pace for making selective divestments in the portfolio? Yep. I think Anna will talk about that so we don't spoil everything that will be said later. Instead, she will be very clear based on what investments we are planning ahead and how that affects our key performance indicators and so on. We will return to that, I think. I know that question will be highlighted quite carefully later by Anna. Other thoughts for Annica? Take the opportunity. Annica will return to the stage several times. Absolutely. A couple of times at least. There will be more opportunity to ask questions to Annica as well. Hi. My name is Björn. I come from Aktiespararna, and I would like to ask, is there any area or any city where the margin stands out a bit? That is versus the different cities, or if one were to compare. If you look a bit at the portfolio within, for example, Stockholm. Thanks. That's how it is. If we look at the yield requirements generally in a real estate market, there is a much lower yield requirement in the middle of the city, and then it spreads outwards, and that also applies in the country. We see in Gothenburg, in Malmö, there are higher yield requirements there than what we have in Stockholm, for example. If you refer to our projects, our initial values look a bit different depending on where you are. In Sickla, we build solely on our own land. That means the possibility of a very good project profit is higher. If it is, for example, a co-op project that you build based on a land allocation from the city of Stockholm, then you calculate with about 15% in project profit. Overall, based on our entire portfolio then, we will be able to at least reach our goals of 20%. Anna will also come back to that. I don't want to spoil everything that my colleagues are going to tell you. I think we should get started and continue. Thank you very much, Annica. As mentioned, there is room to ask a lot of questions during the day. We will return. Good. We shall hear what independent analysis. Independent? No analysis is really independent, is it? At least external analysis. Ted Lindqvist, CEO of Evidens, will get a mic on and tell us a bit about how Evidens, Ted, and his team view different office environments and not least the large areas that Atrium is exposed to. Have you been up watching the World Cup tonight? I was woken up by my son, and I managed to see two-nil, and then I fell asleep. After two-nil? Yes. You went back to sleep after two-nil. Well, that was quite an achievement. I have to stand here after all. Had to make sure I didn't look too red-eyed. I see. Welcome to the stage, Ted. The stage is yours. Thank you very much. Thank you. Thank you very much. Yes, my name is Ted Lindqvist. I come from a company called Evidens, and we work with analysis, which was just said. We try to understand opportunities and risks in markets for community-building actors in general. We work both for real estate companies, just like Atrium Ljungberg, but also for municipalities who sometimes get involved in cheating in government investigations, construction companies, housing developers. We have had a long series of years with a very strong focus on the housing market but have always also worked with the office market. You could say the challenge for us as analysts in the office market is that there is always a little too little data. That is what we are constantly struggling with and try to somehow parry so that we can still understand connections and logics. Okay. What else can I say about myself? Surveyor, real estate economics, cheating with a little research at KTH long time ago. I usually say that there is someone who is special, has especially difficulty sleeping. Is there a dissertation that you can read? Can we take a break? Interested in this. An interesting finding in the thesis was that it was not possible to evaluate it. I would evaluate because the industry in the 1900s did not agree on how big a square meter was. A deal seen roughly like that. Today, my mission is to try to explain to you how we try to understand the office market and the potential that exists. Of course, there are also risks, but how it works can be said. Some meaning in how it works and how the price picture works, that is to say how the rent formation works, and speakers come after me and spin on it just for Atrium Ljungberg's part. I'll try to focus on that. The picture that almost everyone can see, I was about to say. Just thinking about what data to use and how to put on the special glasses that we have made, because it is also tricky in addition to the fact that we have a little lack of data. Another challenge for us in terms of the market is that we, living in the turbulent world that we live in, this applies to all industries, but when you make forecasts and try to create scenarios, we are constantly dependent on how things are going for Sweden. It matters for both real estate companies and for all other activities. What I'm going to say here now is always a picture that we have now, and then we'll see in six months if we have the same picture. That's something you recognize as an analyst. Well, what should I talk about? This nice picture. Have you seen an even nicer picture, so I'll skip it. Just scenarios and forecasts. In these times, although we received quite positive news this morning, but there has also been quite positive news in the past. We'll see. It is difficult to make forecasts. I usually say that you have to make forecasts all the time. You know from the start that they will be wrong in some sense, but it still makes sense if you learn things. What I will try to convey to you today is our scenario and forecast for Stockholm's office market. We are talking about both the next few years, that is this part that is more dependent on the economy. What we have done now together with Atrium Ljungberg is also to try to understand what happens in the long term, because we can see that companies' establishment decisions are becoming more and more dependent on the urban environment they want to sit in. The Ericsson case is a pretty good example of how we build a city and what characteristics different urban environments have affect the attractiveness of these places. It is also important that not only that we have a general development over time, we also have a change in different office environments, ability to compete for the companies that we exist, some kind of internal competition between different places in a district. We have also tried to create scenarios around that. How can you think? How can you measure? How can you use it in your strategic planning? I was going to do then. That was quite a lot of time for me. Here we will see how much I need. It's always a bit fun for an analyst to talk about methodology. I thought I'd start with that a little bit. Those of you who are not interested in that will have to sit and close your eyes and see this five years ahead of you or something like that. I don't know. I saw all the goals on the subway on the way here, so I feel updated. I'll start with that, then we'll talk about the rental market in the next few years. This part, which is more linked to the economy, and which is always, of course, is uncertain. Then I thought I'd finish with the part that depends on how we rebuild the city, you could say. How we develop the city, invest, change these characteristics that exist in different urban environments. If we start with the economy, you can say that this analysis that we have done, it is about these two things. On the one hand, what effects does the economic development have on revenue potential in principle on rents, vacancies, market developments, and that goes without saying. If you look at an economic course of events, we don't even know what will happen in six months, to be really honest. No one knows. That's why this crystal ball is included. Our idea here is still to look at what basically all leading forecasting institutes say. It's not us at Evidens who sit and guess where GDP will go or whatever, but we try all the time, every quarter, to understand what is consensus, the picture of what the Swedish economy is heading. Of course, as you all understand, it is based on what is the world economy on the way and Sweden's role in the world economy and so on. We have done that, then we have no opportunity to do it four times a year. You have to do that once a year, so to speak. I will comment a little extra here today. The uncertainty that we are now facing is difficult to make such forecasts. Annica has previously said that we try to look forward to 2032 and 2033. It goes without saying that this picture is only valid for a few years. It is also uncertain, even if we only look for a couple of years ahead. We try to look at the more trend-related processes to understand this long period of time. Let's start with that. What are we actually doing then? Yes, basically. It is not that complicated, even when the image might look a little complicated. What we have learned a long time ago, and here it is about thick American books that I read 25 to 30 years ago, I think, or something like that. For those who are more interested in this, you can read what DiPasquale thinks is the big thick book. Basically, you can say that we have assumed that there are certain fundamental correlations in the rental market. If you imagine that we have an office rental market and that at any given time it is in some kind of equilibrium, that is to say, the rent level you can see at the market vacancy level, you start from that. There is an equilibrium that has created this rent level, this vacancy level. There is a little simplified, you might say, basically just one way in which there are a few more ways. Basically one way to change this equilibrium, and that is to pour in or remove demand. We measure that with a measure that we call office employment. I think it is used quite widely, but basically, it is some kind of fabrication I was about to say. There are no official statistics that in any way measure office employment. What does exist are statistics that Statistics Sweden has that measure employment in different industries. Those of you who have botanized in this know that there is something called SNI codes for different industries. You can set yourself for each industry. You can think about, is this industry mainly, does it mainly have its workplaces, employment in an office or a factory or healthcare or whatever it may be? Something we have done for many years is that we have asked Statistics Sweden to compile statistics over time that measure this change in employment in office-intensive industries. There are more metrics that abound around this. We have had a consistent measure over time for just over 20 years, something where we have followed this. What happens when we get it, we will also come back to that. Of course, the office building does not create a vacuum, but it arises because Sweden is growing or shrinking. GDP growth basically controls office chair setting. Another factor that we usually look at, what we call productivity development in the service sector. GDP and productivity can explain the change in office employment over time quite well when trying to measure it. There has the National Institute of Economic Research. Statistics Sweden stands for the fact that they supplement our knowledge of how employment is changing. In this way, the National Institute of Economic Research has supplemented our knowledge of how productivity in the service industry is changing. There you work with a little bit, then you change your methods, then we get headaches about it. Basically, that's how we try to see it. What happens in an office market in principle before we look at this economic cycle? Whichever way we stand, I'm hitting the way for someone here, but you can scream if you don't see. We have some type of growth in GDP, basically it's not even GDP, but it's the gross region product we have to measure because we're in a local market. We are the Stockholm region's. Actually, it's the Stockholm region's gross product and productivity development here. The problem is that if you want to measure the gross region product You can do it two years later or something like that. It's archeology all the time, we have to find other methods. I will come back to that. Basically, GDP or gross product productivity, because the employment that takes place, what happens in the rental market is that when employment increases, of course, the leased area increases. More people employed over time and a greater demand for space. What happens then, now we start to end up in this slightly more model technical thing that I think is fun. That's why I'm standing here, I guess, and devote myself to this kind of thing. I think it's exciting. What happens is that if we have an office chair setting, that means that we increase the rented area, we will automatically push down the vacancy. This model thinking works. More employees, more area, lower vacancies, the vacancies are starting to fall, then the rent level will be pushed up. There will be competition for the premises that are available, then the rent level increases. In a local market, everything is well and good, of course, people like Atrium Ljungberg and others will discover that we have a growth in employment, increased leased space, then they will pour in new production. Are we building new premises for Ericsson or someone else? What technically happens in this model is that vacancies go up by the corresponding square meter that you put there, then it has to grow a little more to fill it. It spins around basically all the time find a new equilibrium. We have also seen the stock market development. We have seen over the economy that companies also behave a little differently a way to measure this more. You can think of it as a sentiment indicator. You can also see it as some kind of forecast variable for how companies plan their operations. We can also see that the stock market development is significant in this model for this model. It's a system of equations. You have to be really technical that is connected in this way, we can measure that we have the significant correlations. I won't go into it more later, but it can still be interesting to know about those of you who follow the real estate industry that we can also see quite clearly that the rental market measured in this way, together with some measure of risk-free returns over five-year government bonds in this picture, also provides a very high explanatory power for the dividend yield requirements variation over time. The strength of the rental market in combination with the capital market naturally also affects the property value. Okay. That's how it works in principle. This picture that is to the right from you seeing here it really shows if I now historically every six months since the mid 1990s knew exactly what the office building was, the stock market development, how much new production has been put there. You can say that this almost 30 years or older, this model, it seems to work quite well in Stockholm. Stockholm behaves much like the textbook says Stockholm should behave. That is, if we have a certain growth or a certain subsidence in the economy and measured by employment and the stock market and new production and so on, then it reflects this rent development quite well. You could say that the framework here, if we can call the model a framework, it seems to be highly valid for Stockholm. The difficult thing is not really to make this system of equations and build models. The difficult thing is to know what is happening here with the economy, and then we are back to square one with all the uncertainty as usual. That's one part of this equation to try to understand in the near future. What happens to rents and vacancies? I'll come back to that a bit. The second part of trying to understand the market. That is basically able to explain why are companies prepared to pay 8.5-ish to sit in the middle of Stockholm, but only SEK 1,300 for an office somewhere outside Arlanda. You can imagine, but everyone gets it. There are no shops. What we are trying to do then is to measure more accurately. Why is the rent just SEK 250 in an office like this a bit outside of town, but almost nine and maybe even higher, depending on what we are somewhere in town? We don't care so much about the exact qualities of the venue itself, because it is clear that it affects whether it is new and fresh and space efficient there, but more the area's rent, what it will be. We have two tasks for us. On the one hand, to understand what the general economic development will mean for rents and vacancies in the future. The characteristics of the urban environment are changing that mean that we will have more such areas. It also plays a role in the rent level for a property owner, which is typically seen in that place or that place. That's when you are not in general, you are in a specific place, and then it is important for us to try to understand why is it the case that there are such large rent differences. Can it then be made probable that when we change the urban environment, that we also change this place's position in the market and that it affects the rent level in this area? I think we'll have to back the band maybe 15 years or something like that. We got an assignment from Region Stockholm, which regularly does RUFS. We in the industry say regional development plan for Stockholm, what it means in plain Swedish. They had discovered that it was not just about geo-technicians and whether there was available land and so on when planning for Stockholm 10, 15 years ago. It also matters how the market works and what there was a demand. Will it not matter that the municipalities draw in new offices as a noise screen somewhere if no one wants to rent right there, so to speak? They wanted to put a, can we call an economic grid on top of this regional plan to understand how market forces would structure investments over a long period of time. We help and thought a little and thought and calculated. That counting and that thinking is what I will try to present to you then. Before I do that, you can say that there is a bit of a lead. When you open other theory books, there is something called urban economic theory. Basically, you can say, if you want to make a long story short, you can say that basically two things, I would say, that determine what the rent level will be in a certain specific environment. One is, what kind of company is it that chooses this environment? What productivity do they have? To put it simply, you could say that rent plays a particularly big role, or are there other things that are more important to these companies? The second question is, how sensitive is this company to all kinds of transportation costs? Transport costs are not just about the workforce leaving home and sitting in the office and working, but it is also about when I do work, how transaction-intensive is my business? If I have to have 50 to 11 meetings every day, it will be very expensive to sit somewhere where no one else sits. It's just trips all day. A lot of this thinking is based on what you can call urban economics or urban economic theory in Swedish. This, with transport costs, plays a big role. What have we done? In principle, you could say this picture contains quite a lot of information, but what we have done, used a very simple statistical methodology. Some of you probably like statistics, working as an analyst, basically, this is what you might call a cross-sectional model. What we try to do basically is that we keep the rent for a certain environment constant, then we change a number of properties. So we can study each property's unique impact on the rent level. That's roughly how we can describe it. What we see is the principle that basically you can say that it is about three things that make the rent, either those 12, 250, or those 890. The individual, they are connected. I will not say the single most important one, but a very important factor is what we call accessibility by public transport in this area that we are in. How many people tonight, the population that we live, can reach this place within about 30 minutes by public transport? That is a very important quality for an office area like this. 30 minutes is not something we have made up, but the statistics have created a highest degree in this model through that particular measure. You can't say that it has to be exactly 30 minutes, but it gives a very good explanation. The second factor that plays a big role is what we call service offering. What kind of trade, services, cafes, restaurants, and so on are there in the local environment. We have seen that about maybe a few kilometers. We have the climate we have in Sweden, about a kilometer, 10 minutes walk or so. What is within it radius? It also affects the rent level. This in turn has a lot to do with the fact that we, as individuals or households or however we want to call ourselves, a very large part of our consumption takes place around work rather than around home. Groceries are the exception. A lot of what we do, we actually do when we go to or from work. It is also important. The third factor that also plays a big role is what we call office clusters. How many other employees in offices are there in this environment? There are other theories. Some of you that you usually talk about agglomerations, it is called in nice language. Some type of density concentration of, if you look at American books and white-collar employees, it also plays a role, and it simply creates economies of scale for office-intensive businesses and where other office-intensive businesses are in different ways. CBD behaves a little special. Who can ignore this now? I will not talk too much about CBD, but CBD is a very special environment. It is especially in Stockholm, you could say, because it is surrounded by moats, literally with water. It is difficult to expand, to become, and that is that it gets a certain behavior on the market. In addition, we must not compete with church towers and other things that mean that we lock in the supply in a different way than in other environments. What else can you see? You can also see that this range of services, there are two things in this place, really. Firstly, how many people work here, because as I said, we consume a lot at work, but also how many people live here. These are the ones who service the cafe and the restaurant. They are dependent on being able to sell something at 6:00 P.M. or on Saturday or even on Sunday and such, and it will be very difficult. There are some points that are more of destinations that can handle this, but basically, there is also a need for a demand from that population or the residents. This is probably a classic mistake that Swedish community planners made in the '60s, maybe even in the '80s, that they separate these functions. At that time, the labor market looked somewhat different. You worked more in the factory and things like that than you do now. Maybe it wasn't so strange. One of the keys to getting a better demand for offices is actually to integrate day and night population geographically. We also see that it has been learned. We see that Atrium is a good example of such a strategy, but also sees that the city has begun to understand that it is important to do this, and some of the problems that exist in some, what should we call it? Suburbanized environments are about it being empty there after 5:00 P.M., and then it becomes very difficult to maintain a service offering like this with these variables. We can actually explain the differences in. We have made this model in about 90 areas throughout Stockholm County, and not with everyone in this picture. Basically dark blue there in the areas where Atrium is present then. What is it then that we want to do? We want to do this. We now know that there are major investments in infrastructure and in other urban development. We are building new homes, we are building new offices, we are building new shopping centers, and we are investing not least in the rail system, but also in the system. Bus traffic also has some significance for this. When we look in the whole county. In addition to the economic development, it is of course the case that some environments here will have much better accessibility, get a better range of services, get a larger office cluster. It will affect the demand between the different areas, depending on whether I get here or it is created in this place, or if I will be without this type of investment. Those who will be without, they will, in relative terms, have a weakened competitive position in office buildings. The market and those who get a lot of these things will conversely get a stronger position and thus higher rental potential. What we're trying to do is that from some kind of starting point, what is the rent level? At the moment, we are simply trying to estimate the size of this increased willingness to pay for companies. Depending on the level of availability, service, and cluster, the cluster grows. It gets money in this regression model. In the best of worlds, you would say, okay, if we now look at the fact that we get a metro, for example, accessibility increases and we build new offices and so on, then we will have a certain rent effect in this model. It is the case that just because we get much better in this place, it is not obvious that the rent pot among all companies is growing. It depends on the economy and such. We also make a certain adjustment in the calculations and say that those that are relative terms will have a poorer competitiveness. They are losing rent levels, so that in the short term, we keep the rent pot constant when we do this, but we redistribute it between different environments. You invest a lot of new things so you know that you get a little better paid for a newly built, nice modern office compared to maybe the login and environment. The picture on the previous page is about the economic growth also plays a role in the rental development. What we have tried to help with here gives this picture of the structural effects as a result of infrastructure, urban development, and the economic development we have regardless of whether we build metros or not, so to speak. Therefore, we need to look at both. Atrium Ljungberg will come back to later what this means for Ljungberg, but about that. What size effects can be imagined from this? What do we see ahead of us in terms of the economy? I won't talk so much about trend analysis. You can do that if you want to just put the ruler I held on my curves there and pull it out. What can you think about the rental market in the next few years with this model perspective on the change in the rental market? I'm going to say a little about that, and then I'm going to finish a little bit about the two, about the effects of urban development and how the investments in urban development we know about, how it affects the environment in general in the Stockholm region, and in particular, the environments where Atrium Ljungberg is active. When we looked at these things for Atrium Ljungberg, we did this during the winter, we can say, and at about the same time as we are handing over our numbers, the U.S. attacked Iran. That's how it is with economic analysis. You do something one day and then something else happens the next day. I thought I'd say a few things. You can think about the economy and such. Now we have tried to make an analysis that extends up to 33 approximately. It is clear that then there will be different types of bumps on the journey. It can still be interesting to think a little about what happens. Some of you can do this certainly much more than I really can do at most with the real estate market. What happened this spring and what continues to happen, we'll see. What is the result of today's announcement that both Iran and the U.S. are in agreement? How long will they last? It is, as you all know, that we have a settlement in the economy, you can think about, do you need to revise this picture of, or how does this picture affect the rental market going forward? Yes, it has an impact in the sense that we get higher inflation in the world economy. High inflation results in lower real incomes and lower growth, which is a lot of the case. It is both investment and consumption in GDP, of course. If you remember well, we had a very important factor when we talk about the development in terms of employment. It is directly dependent on GDP economic growth. Of course, this is a concern. We don't really know where it will go. If you are to look at this period up to 2032 at all, there will be a lot more happening. Therefore, I can't say too much about this with Hormoz and the rental market. Who knows. If it blows over now or if it goes on for a while longer, it will of course have growth effects. The message is that this type of economic analysis has to be worked on all the time. Of course, there is no answer. A lot of things are happening. A lot of things can happen during this period in the next few years that, of course, affect GDP, Swedish growth, and thus the Stockholm region and the office building market. I have listed some of these that we are thinking about. What are the growth effects? What effects will this have on the Stockholm region's growth? We are very sorry ended as a community building analyst, and we can only state that there is an election being held in the U.S. You know that. We have this issue hanging over us all the time about Russia and Ukraine. For example, what happens if Russia is now at it? If they do now, will this war be lost? I think most of us think that's a good thing. What happens in Russia then? Yes, there are risks that you all understand. We have China's decision on its military capacity in 2027. It is, you have to have a certain level. What does this mean for Taiwan? What does the U.S. do then? Yes, you know this. We've tried to look at these different scenarios. We can't link it to a specific economic forecast, but you can think about the slightly longer term. What does it mean? What do these different scenarios mean for the world economy and for the Swedish economy? The picture that I will soon give of how we see the rental market, it remains in the image we have had for a few years. We've just called this one disorderly continuity. You can read for yourself. That is, it will be a bumpy road. Things happen. We have Trump at the helm in the U.S. I guess you have to say that he is quite capricious, at least with some kind of Swedish perspective. Of course, this affects growth with tariffs. You can imagine a better scenario that American policies soften a little harder towards Europe and so on, and we get a little stronger growth, and we have a lot of other scenarios you can line up, and you can be quite pessimistic if some of them come true. What I will convey here is that we have over the next two, three years counted on, right or wrong, that we have some type of situation similar to the one we have had now, and which still means that we will come out of this recession and have a GDP growth in the next few years, which is somewhere between 2%, maybe 2.5% at best. We'll see if it's right or not. I don't dare say that, but that's how we've looked at it, and that's how we try to understand the actual office building market. It also rhymes reasonably well with what some of you will have said about economic developments in the next few years. That we have a GDP growth, with the calendar, corrected figures here of somewhere around 2%, maybe 2.5% next year, depending on who has made the forecast and who is right. This should mean for the office building market that we get stronger employment growth than we have gone through now in recent years. I'll come back to that, too, because if we try to break this down and then I said that you have to be an archeologist to understand gross product because it is not fully calculated for two, three years later in any way. However, you can follow the payroll change and the salary sum vary a bit over the years, but it may be somewhere in the order of up to two-thirds GDP approximately. The rest are corporate profits, but they are much more difficult to tie, so that there is not a local demand. Ties to geography can be distributed anywhere, and therefore, we use the payroll when we are to make forecasts of office employment as a proxy for some kind of regional GDP development or gross region product development. This is one of the answers to why we have had such an extremely weak office rental market for a number of years. We have had negative economic growth in real terms, and for a year or two, we have climbed above zero and are starting to recover the level. We have the last few quarters. We can measure this quarterly because all companies report their payroll every month, and then we have a pretty good one. In real terms, we have a little over 3% growth in the total payroll now, which is a decent growth, even if we are nowhere near this, you should call it cow release, the growth that we had after the pandemic for a few years. We are well on our way to recovery. If we look at the Stockholm region growth and wage bills, we will soon be back at the level we had before this sharp decline. We also see that subsidence is historically large. The fall here is actually even greater than it was during the financial crisis, and this is partly due to the fact that it is a more protracted process. Of course, we believe that economic growth will return. We are in the middle of such a period now. We hope it continues, and if the strait is resolved, there is probably a lot to be said for it. Employment is the key issue, and that is a national one. Pictures will be coming soon to the regional, but we have had a fairly weak development in employment, lost employment, both at national and regional level. Even there is the picture. If we look at your colleagues' various estimates of the future, that we may have an employment growth of around 1%, both this year and next year, for those who speak out. Some have said something even about 2028. Here is a trend wise. The growth rate is just under 1% per year. I'm probably lying there somewhere nine or something like that. We are in the process of normalizing the development of the labor market after a few years. It was even negative here. In 2024, 2023, we are trying to break down that picture at the regional level. We can see quite clearly that we already have strong employment growth in Stockholm. There is one goes up and down, one volatile, and there are certain seasonal patterns in it that I don't need to go into here. Here we can state that offices at the beginning of the total employment come to the office building. We have the negative trajectory in Stockholm with other markets, but that we have a fairly strong overall employment growth and on a rolling four-quarterly basis. We come to this metric that I started by talking about, which is office employment. We see that we have a growth in office buildings in the Stockholm region of almost 1% over the past year, and it goes up and down a bit. You can also see here that we have had negative growth in the office building basically from 2023 right up until here at the beginning of last year. It is clear that this is a very important factor in why we have had such a weak office building market as we have had. There has been a discussion, and we find it difficult to measure, quantify the effects of the fact that we have quite large behavioral changes in the rental market, that we have work from home and so on. Of course, that's the case since the pandemic as well. A root cause of the weak development in the rental market is simply fewer people working in offices. On top of that, we have some behavioral changes that the feeling is that they are turning back a little bit, actually, even if I have no measure of it. We can think about the future. What happens then? We develop our equation here and think about how will productivity develop, how does the payroll develop, which in turn, when we make an assessment based on these GDP forecasts that the institute has made, we still see that we have a positive development in the number of offices employed, and that will be important for the office building market because it will start to reduce vacancies. If you remember this wheel, you will see when vacancies drop a little, we get a stabilization or even growth in the rental market. If this picture is correct, that we will have more offices employed in the next few years, we will also have a stronger rental market. This applies to all regions except the Malmö region, which still has a fairly weak development that we carry with us when we sum up the entire region. This means that our forecast for office buildings in this simple graph means that we will have more employees than we had in 2021 at the end of this forecast. That is the starting point or the basis for a stronger office market. As you all understand, the risks lie in this economic picture and where it goes and what can happen both with Russia and U.S., China, and so on. Here we are. Here, the effect of the forecast made by the large institutions is the second picture also says something quite important about the rental market in recent years. If you see the loss that we had in office buildings in Stockholm here, we are basically very far back in time to see similar losses. It has been a historic turnaround, you could say, in the economy and the employment in the Stockholm region in recent years. It matters a lot. I don't have a good measure of this with behavioral changes and how it affects office demand. We'll see. We have shifts in technology as well as with AI and so on. What I can state, you can certainly draw even more clever measurements of this, what you can do is look at how much office space do we have per employee in the region. Then you look at it and you drag it out over a long period of time and look at the entire region's employment and relate it to the city of Stockholm in this case. Just to get a trend in some way. We can state that the industry as such has been working with this forecast model that I showed, has been working with us, sitting tighter and tighter, basically for a long time. This is not a new process that we tighten up the spaces or rent more efficient offices and such. It's something that has been going on since the 1990s anyway, when we had maybe 35-40 sq m per employed person measured in this way. I would probably say that our picture right now, it may change if we receive outcome data that looks like support program. The fact that we are changing our image right now is that this office building will de facto have a positive impact on the rental market. What AI will do next is difficult to say. There are also some conflicting ideas that it is on the way. We will have to come back to that some other time. That's how it looks. When we try to make a forecast of the rent development, the vacancy development here, then we simply have our office employment as the most important input in the model. You remember, we make it up. Was I about to say something about the stock market? You can believe what you want about it. I'm not saying that it is a forecast. Then we have to constantly map out new offerings technically in the model. As you will remember, the new supply means that we will have higher vacancies, and you could say that is perhaps the easiest task. As everyone knows, we have a planning monopoly that means that you have to say quite early on, "Hi, I want to build an office." That means that we have a pretty good overview of which areas. It can look like these that are a little further ahead will be stopped if you don't manage to rent out and so on, but we think we have a decent handle on this. If we then use this model as historical, you have already seen that. Correspondingly, you can then recreate the vacancy development if we had the right input. It is a little more difficult. Vacancies as a measure are quite a difficult measure. It is hard to know that you are measuring exactly right and such. If we then use this forecast going forward, which has been quite good historically, if we have been right about all these growth conditions, then we will see that we have weak growth in real rents here. We have a slight decline in vacancies. This is probably a little weaker rent development in the near future. A little weaker reduction in vacancies in the near term than we expected six months ago. You have to call and blame Trump, so to speak, because it is down there at the economic growth that explains it. This picture is central Stockholm. We can make a similar picture for what is the inner city outside the CBD, where Hagastaden is, among other things. You have to think about what exactly is Slakthusområdet and Sickla. It is starting to be incorporated into the rest of the inner city's outer edge, but fairly stable rent development, and also in the long term here at the end of the forecast period, a little lower vacancies. We have taken that with us when we have made the forecast for Atrium Ljungberg that we have a stronger rental market. We have support in the fact that rents are increasing. I showed rental pictures here that were expressed in today's monetary value. That is fixed money all the way back. You all know here that we live what my professor of real estate economics once said that it is difficult to be a lot of others, a real bird in an otherwise nominal forest. That is how it is for us who work in these long contracts. Inflation always comes to the fore, and not least on office buildings, the land where you have index contracts, and then you look at this later. For real, Martin Ljungberg has done. You have to add inflation to this. We believe a slightly stronger rental market in the next few years. When we start to get beyond to eight to nine, we take the trend with us in the only thing we have to go on at the moment. Okay, we will see. Rent effects of urban development, because then we have one part, one leg clear to us here. What happens in the urban environment and how does it affect, not least at different environments? What we have done today is that we have simply tried to map out these things that I talked about. What happens to accessibility? What happens to the service offering? What will happen to the office cluster? These are the most important parts, but in order to do that, we need to understand what is happening in public transport and infrastructure. There is a consulting company that you probably know called WSP. They have an assignment from Region Stockholm to keep a traffic database, it may be called. I do not remember now where you keep track of accessibility in every point, basically every single stop that is in the region. If you invest in new infrastructure, for example, you build a new metro or you build a road on the Slakthusområdet or whatever you do, then there will be both capacity, greater capacity that increases accessibility. There are also system effects that redraw this map a bit depending on how you draw these different lines. This is calculated all the time. It's part of the socioeconomic calculations you have to make to finance new infrastructure. Then we have simply taken that data and tried to use it to understand what happens then with accessibility here and elsewhere when these infrastructure investments are made and open up new stations. That's one of the things we've done. The second thing we have done is that we have mapped out what we believe because it is important to say will be built, as I said before. The service component is also important for understanding the attractiveness of an area. It depends a bit on how this day and night population changes. That means that we have to keep track of both for the sake of the office cluster. We have to keep track of how many offices are added, but also to understand the range of services. We must also try to understand how many new homes will be added because it also affects the basis for services. We also need to do it across the region because this is a relative game between different areas. Even if you're most interested in the Slakthusområdet area, you also have to think about what is happening in Kista or Solna Business Park or whatever we are somewhere. Fairly extensive mapping work that needs to be done. Then it is also so tricky that you would think if you look at the municipality's website, it says what plans they have and what they're going to build for offices and what they're going to build for housing. That's true so far. It's just that all municipalities are super optimistic about the pace of construction. We have learned after many years that yes, some will be built after a while, but far from everything that is planned. In addition, it often takes quite a lot longer than you think. We have also had to put a certain break of assessment on this, then we do so that we run both a result where we have not added this slightly qualitative assessment, how to put it, and one that is more these plans exists. We drive in. What happens in the model? What you can say is that if you were to build everything that there are plans to build, then you would get more positive effects after all. What you have to make a forecast on is still a qualified assessment of what will happen during this period. There is at least one uncertainty in these models is how quickly will the urban environment change. That in turn depends on that. I have talked about the economy because they have the investment decisions, not least on the office side, but also on the housing side. Depends on how the economy develops, building more homes if things are going well and fewer homes if the economy is doing worse. It is quite extensive work that has been done there. With those studies, accessibility, new housing, new offices, we can estimate the effects on rent levels of landslide development. You can say for some environments here, quite a lot will happen in terms of accessibility. For some environments, a little less happens than you as a layman would think when you look at the numbers. Sometimes I have been surprised by certain parts that, as you might think, will have a major change. It is also based on the fact that when, for example, you develop a new metro line, you simultaneously shut down a lot of buses and so on, so that the net effect is sometimes a little less than you think. Nonetheless, if we look at, in this case, Atrium Ljungberg's different areas, you can say that all areas will have better accessibility in absolute terms than they have today. That's because they are in these, the areas of influence of new subways, in principle, even if they don't get a new metro station, there are system effects that in some way affect these environments, several of them. Some will have a greater accessibility effects. If you get a metro and previously did not have a metro, you get a very large positive accessibility effect. There was already a subway here. You re-dig and make the station locations a little different, it becomes a little smaller. Basically, you can say that it is positive accessibility and the investments that are being made now in Stockholm, they provide historically large accessibility improvements in many places, I guess you have to say. It is important to count some office plans, and you also have to think about what will happen until 2032, 2033, and so on. As I mentioned, you can be quite strict. The assessment, a criterion that we always use is that if we do not have new production rent at a certain level, we zero these municipalities' plans. Simply because no one will build if you get SEK 2,500, because you build at a loss. What is built in these types of locations is often these single-tenant offices. We've seen that in another place, but it's very limited volumes after all. We look at that, we roll through all the data through this model. We map out this that I've talked about. We get cluster effects, we get service effects, and we have this accessibility effect, we can calculate a new structure rent level for these opportunities when urban development and infrastructure are in place, we have done it. What you can state is that this may seem like I have received some kind of bribe or something here from Atrium, I actually have not. It is simply that these environments, Hagastaden that you see stand up there, Sickla Slakthusområdet, and Lund in rapid change. Also these areas in several cases where Atrium is located, they are typical examples of these new urban environments that are emerging in the inner city, we could say, where you get both the effects of accessibility and urban development and where you already are. The starting point has. I think it is important to understand, if you are to understand the market of office buildings, you have to have a certain level already in the starting position for these factors to start reinforcing each other, because we see that Hagastaden is taken as an example. It's not a coincidence that you succeed with such a large rental as Atrium has done here. We basically already have a fairly dense urban environment. We have, you may not think about it, but you have a decent level of accessibility in the starting point. From Odenplan, you can both go by commuter train and there are subways and so on. They have a range of services that follows from both the fact that it is already a fairly dense urban environment. We have a huge workplace in the form of both Karolinska Institutet and the hospital, which creates demand for services and other things in this environment, plus the dense Vasastan. It is precisely in these environments where you have a decent starting point right from the start. You get a decent level of service and a reasonably large office cluster. You get accessibility. Investors discover investors. More premises will be even more attractive. More people are starting to work here. The range of services can grow. You come in here, the positive spiral. One could imagine that you do not build a large office area at Älvsjö, for example. We're very accessible by commuter train, and they're soon going to get a subway. It's just that you have to start from scratch and it's much trickier. There's not a single population there today that can carry any range of services. Even if the accessibility is decent, the overall experience from office buildings will be guests, because it will be too weak to be able to compete with what is established. When we do this, we can see these effects in the actual regression of the cluster effect, which is about getting a larger population, the service effect that is, of course, related to cluster effects. As you, if you're memorable, remember from my first picture, it affects the accessibility, even the service effect a little. If there's a large flow of people, we can also have more points that have a range of services and a change in accessibility, and together it provides a certain dynamic that means that we get a positive rent growth of on, which is quite noticeable in many places. You can see that the accessibility is a little better everywhere but there. You should also add this addition of urban development to a rent level today to capture the full dynamics. The conclusion of this is that the economy is a wild card in the game. It will affect both the rent development as a result of the economy for obvious reasons. It will, of course, affect the pace of not the infrastructure investment itself, because it is decided on a different basis. About how much new offices and housing and services we will be able to add, because it will be in effect, of course, the economy. With this economic scenario that I have tried to show trend growth in recent years, the economic cycle, we can't say much more about the years around 2030, and that we will create significantly better competitiveness among the Slakthusområdet area, in particular in the Sickla Hagastaden stacks. That means that it is a measure of a structurally higher office demand in these particular areas, because the competitiveness of these areas has been strengthened in relation to other environments in the city. There is probably time left, it was my last picture, actually. In summary, in any case, I am well-positioned in these particular environments that are growing strongly. There are agents in several of them. There are a few environments here. We have Värtahamnen for example. We have Liljeholmen. There are a number of other environments t,hat are also changing, you can think about what is happening. In these particular environments, it is obvious that we have momentum in urban development. We have decisions about the infrastructure, the rest is really up to the economy, because that's where all the risks lie in principle. Structurally, these places will become more attractive in the office market, then economic development will determine how long it takes to realize this. Yes, super good. Thank you. Yes. Super. Tack. [Non-English content]. You have to shake out your legs here. Right. Oh, how fun. You shouldn't be in Järva anyway. It's tough there. It's tough there. Järva is wrong. Järva doesn't get that much development. The thing is, when you read these numbers, you have to look at what area is circled, so to speak. You can associate different environments with different places. No, structurally it is, and it's also like if one area wins a lot or some areas win a lot, then it becomes a bit like I said earlier, the others lose. It's not that accessibility has gotten so terribly much worse in Kista and it's going to get even better. If other areas get better conditions, well, then the competitiveness of that type of area simply decreases. This is probably a sign that certain environments that don't work so well today have difficulty attracting investment, both in new offices. In this economy, we've seen even housing, unfortunately, and then certain environments simply end up in a backwater. To discuss other areas too much, I actually looked at Kista. Accessibility in Kista was something that surprised me a bit. There was also some other accessibility Barhöga I looked at. Västra Kungsholmen. Ja. What's happening here? Kista is simply because when you, so to speak, extend the Tvärbanan, partly accessibility becomes greater because you connect it to the commuter train in Helenelund. The commuter train is very high capacity, you could say. Plus you also connect that part of the Tvärbanan to the subway network via Rissne. You simply get system effects there that are favorable for Kista. When it comes to Västra Kungsholmen, no, sorry, what did you say? Yes, exactly right. It's simply that the blue line gets much higher accessibility. We connect the whole Nacka Värmdö section, make other connections in Söderort that make it. If we stand here, it's not many minutes until we are either at Rådhuset or Fridhemsplan or Östra Kungsholmen. Yes, it's probably Hornsberg, rather. Östra Kungsholmen, that's the part of the inner city that is quite close to the central station. The city hall, yes, exactly. Again, we probably should have had a map. That would have been a bit easier, of course. If we stay on this slide for a second, if you were to choose one of these, [Non-English content] I think what we have learned is precisely that the most successful or the strongest office environments, they are the ones that can benefit from these at the same time. That is somehow what happens. It is enough, yes, but the office supply in Akalla doesn't get so terribly much better just because you have a subway there. It would be even worse otherwise, but it's not enough, so to speak. Instead, you must have this interaction between accessibility service and office clusters. They reinforce each other. It becomes, so to speak, a positive spiral of us being in a place that has a certain momentum. Offices may have already established themselves, if I take Hagastaden as an example. Then the service offering increases, then the politician thinks that, yes, but this is an interesting place. People should both live and work. We invest in a subway, it gets even better, it spins in the right direction. There are probably environments, I think, that risk seeing a development that goes in the other direction. I think there are some such examples. You can take these office environments we had in Söderort 15, 20 years ago. They are virtually gone today because they haven't been able to simply create an office cluster. You have some accessible points, but it hasn't been enough. I think that for some environments, the train has sailed, in a sense. You have to have this base of density right from the start with residents and workers and accessibility. Then you get even more accessibility and even more service and an even larger cluster, and so it spins. That is a development we recognize if you look internationally as well. That you get environments that simply suburbanize. They spin in the wrong direction. What should we say as an example? There are certain environments that you perceive objectively should be quite strong but have gone quite slowly. Some offices have been built around Bromma Airport, for example. Some offices have been built a bit too isolated, perhaps in Solna Sundbyberg, which don't really connect with other things. It goes well as long as those first tenants are there, it becomes difficult to get momentum if you don't get a boost through urban development or new infrastructure. That's what you should keep an eye out for, all of these three variables, really. I thought about the first slide you showed, where you showed the estimation of how the model had worked. Yeah. I think it was CBD as an example of the best performer. Yeah. You mentioned throughout that you had broken it down into 90 areas or something like that. Right. Not because I expected you to describe how the estimation works in the other 89. That wasn't it. Do you feel like the model's robustness works across- I suspect that the smaller the areas get, the more volatile and strange this becomes. That's how it is. If I then return to the first thing I said about the lack of information. The smaller the areas, the harder it is to separate, so to speak, pure business decisions from general development, so to speak, and then they can jump back and forth a bit. For CBD, these connections are very strong. For the rest of the inner city, these connections are very strong. When we get further out into what we can call the near suburbs, parts of Solna Sundbyberg, for example, the environments become so heterogeneous. We might get one development in central Sundbyberg, and we get another development around Bromma Airport or whatever it is. There the models work a bit worse, or perhaps more correctly, the information is a bit worse, which makes it difficult to put these models together. We can see that. It's hard to say. We have this, what should we say, effect that occurs if we get out in, yes. There's nothing wrong with the office market in Solna Sundbyberg. That's not why I say this all the time. If you imagine an office market where there are always building rights, then the rent will be determined by the cost of new construction, not by demand. Because what happens if we get a great economy here now, vacancies will go down. Do you remember? The rent is pushed up. When the rent is pushed up, it will send the signal to the market to put more offices there. You can do that in many of these environments. The rent potential becomes very weak. Where you have a lot of land right next to it, you can put a new office. Sure, you can rent out a new office. That's good. The area rent will always be limited to really what it costs to build with interest on that. Whereas if we take more central parts of the Stockholm region, there is always a shortage of building rights. That means that economic development pushes rents up to levels that would have justified new construction long ago, and then you get a stronger value growth. That part of the office market is governed by these factors that I have tried to describe. Other parts are a bit more simple fundamentals, especially if there is land. There's plenty of time because we have some questions here. I see. Thank you very much. I have a strategic position here, so I always get the mic. No, I do. Hagastaden, I believe you've been pointing out for quite some time now that there's great rental potential there. The Ericsson contracts just the other week, both Atrium and for that matter, Castellum. What does that mean? Is it reflected in these figures, or will it be in your figures? I want to boil it down to what is your assessment of what that does to the estimated average rent in Hagastaden in real terms? Thank you. Right. That was almost too good a question I was about to say. What we've done is we've looked at the plans that exist for Hagastaden, someone from Atrium can correct me if I'm wrong. I believe that when we looked at Hagastaden, these buildings were, so to speak, already in the plans. Therefore, they are, so to speak, included in our calculation. That's probably my short answer. They're nodding here. That's a relief. It is that Hagastaden has such a strong position in the market. We've simply assumed that those buildings will be built, and therefore the effect is included in our estimated assessment. The rent level that Atrium gets in its buildings, I wouldn't venture to answer that. I don't really have that off the top of my head. Yeah, we haven't been so project-focused in this calculation. Furthermore, we did this calculation in February, back then, we knew nothing I was about to say about Ericsson. I'm thinking that one could say Hagastaden as a whole will also see a positive effect from Ericsson moving there. Absolutely. You can already notice that when I get emails saying, "Hagastaden seems to be the shit. Can we rent there?" Interest has increased even further since Ericsson decided to move there. That's how it is. You could say all these statistical models, they are, caricature is the wrong word, but they are rigid, so to speak. They are some kind of representation of reality that gets a bit simplified in various ways. There is a certain dynamic, I think, in some environments that a regression model like this, which has to measure 92 environments across the region, struggles to capture. One such thing is how it feels to walk down the street, to go out into this urban environment. Can I hang out with my coworkers after work? Do I want to stay here and so on? That lies somewhere in this range of services. I think Hagastaden is probably the environment of all of these that is Partly because they've been at it for quite a long time, partly because you have a very high density of housing and large workplaces right from the start. Karolinska, the offices located on, partly new offices have been added, but Norra Vasastan, now I'm losing my train of thought, Norra Stationsgatan, and so on. I think Hagastaden is simply an unusually good example of urban development and will, of course, become even better when you have thousands of Ericsson employees spending their days there. Now I don't know what these blueprints look like, it's important, even if a company like this wants its campus, it's important that it faces outward, so to speak, so that Ericsson's employees and others in Hagastaden can go grab a coffee and have lunch and so on in these ground floors, because we've seen that. Yes. It's a requirement from the city as well. It's a wise requirement, so to speak, in that way. There were more questions. Thank you, Lars Banér, Salomon Capital Partners. Two questions, if I may. One is that when you look at this graph, you notice that the orange bar is quite high. That includes lots of different factors, but one is general pleasantness in the area, and we are here in Sickla. It's very nice. You see. what was intended when the property owner invests in the area. Do you perceive any difference between areas where the property owners own the land and get the full added value compared to areas that are on leasehold or other rented land? That's question one. The second is, if you look around Europe, are there any factors that have perhaps surprised you regarding development? If you look at Paris and London, you notice a huge difference between top offices that might cost GBP 140 per square foot in London compared to a bit outside, where you can get a half-decent office for GBP 30, GBP 40. Paris, where La Défense, for example, has incredibly good transit. You can take the RER in 15 minutes from anywhere in Paris, there are office buildings standing completely empty there. In my world, specifically in Paris, it probably has to do a bit with the demand side rather than the supply side, that the tenants who were there, they completely had far too many employees simply, have been able to cut the number of employees by 50%, 60%, 70%, you don't need a huge office in La Défense. You could say that now we're trying to speak on the basis of models and data and so on. What you can say is that these leaseholds have been very tricky, I would say, for the willingness to invest in the urban environment. These leaseholds, which exist in Stockholm around Sergels Torg, for example, every investment becomes a question of how much, well, I'll exaggerate a bit, how much more money will the city of Stockholm make if I make this investment? Of course, that's a different decision-making environment, so to speak, compared to if you have control over the property yourself. I guess it has some significance, but not so that I've been able to measure it directly. When it comes to differences in rents, what we've seen is that partly, I think one can have a concern about what happens to rents in environments that have become the target for back-office functions, if one may put it that way. Some of the moves out of central Stockholm have been motivated, among other things, by the fact that 80% of the space is some type of back-office function, and then it became expensive to sit in the city center. Well, we'll see what happens with technology and other things, but there are, of course, concerns that certain types of office environments then won't be in such high demand, and that's really roughly the same reasoning as this model, I would say. I know too little about La Défense, but what is very clear is that even in Stockholm, the differences in rent levels between so to speak prime locations, if one may put it that way, and more of the bulk, and especially large bulk locations, have increased. If you go back 20, 30 years, it would have taken, well, I'm making this up now, but don't misunderstand me, it would have taken 40, 50 years to build up large Swedish companies to reach a billion-dollar market, get high productivity, and thereby become quite insensitive to rent costs. What has happened in the last 5, 10 years is that with digitalization, Swedish companies have created billion-dollar markets for themselves in a few years. If you have a billion-dollar market, whether your name is Spotify or whatever you're called, then the office rent becomes very unimportant in relation to my ability to attract the right staff who can make me into this world-leading digital company. What we can observe when we look at those who pay the highest rents in Stockholm, it is very high-productivity service companies. For them, it is too expensive to have too high transport costs, as I touched upon earlier. It is also very important to have an environment where you can, so to speak, be top of mind for the most talented in the workforce. I think partly that such things have played a role even for Ericsson's establishment in Hagastaden, that it is like a software company to a large extent today and must be able to recruit labor. Now, I don't know what I'm babbling on about really, but that was some reflection, at least. I think we'll come back to this split. Erik Skalin, who is Head of Leasing, will address this question about a very split market as well, I know. I think there was another question. Thank you. Oskar Längd from SBAB. I had a question. About a year ago, I think it was, you had an analysis that we had lost about 44,000 office workers in Stockholm. [Non-English content] Well, these are half-year figures, so I don't really have it off the top of my head, but we have come back. We've recovered maybe What does it look like? We actually had quite a good development during 2025 in office employment as well. We've probably recovered about half of it maybe soon, and we might be fully back by 2027 or something like that. Hur den utvecklingen har följt det där med vakans på marknaden. Well, you have to remember here that we have a very hard time. This statistic you could say is what companies state in surveys to SCB regarding how many employees they have. The direct link, there is a certain lag in this, of course. I think our general view is that if we hadn't had this increase in office employment, then the vacancy development would have been even worse. What has happened is that this growth in employment has slowed down the vacancy development and started to turn it gradually downwards. It doesn't happen in six months. It takes a few years. We also constantly have this change where companies then leave older offices, try to invest in more space-efficient offices. In the short term, those figures can fluctuate a bit. I'm cautious about doing too exact math on one or two half-year effect. That's because this is a very high-level figure about office employment in office-intensive industries. It lies up here and the actual vacancies are down here, and then it takes a while, so to speak, before this kind of force finds its way down to the individual premises. I would be surprised if this development is correct going forward. I would be surprised if we don't see both a stabilization and a certain, as I showed on the forecast page, a certain decline on the vacancy side. We believe that. The vacancies also depend on whether we put up new offices, as I said all the time. A bit of difficult math. Sedan hade jag också en fråga på work from home-trenden. Om man kollar på statistik så ser den ändå ut att vara relativt ihängsen. Har ni börjat se att det på något sätt stör förklaringsvärdet av kontorssysselsättningen? No, not yet in any case. We haven't seen that. It can have a big impact on individual leases, individual properties and so on. I think it lies a bit in the fact that the model has existed during a period when that efficiency improvement has been ongoing for other reasons, competitive reasons, so to speak, cost reasons. Of course, if we got this behavior along with the pandemic and shortly after, then I have no data to support it, but logically, these durations should now start to be through the big adjustment period, so to speak, since it's now six years since the pandemic or something like that. Five at least. Of course, if we got this behavior along with your shit about the period and that and I have no data support, it's not we should actually show the recent period, so to speak, since it's now six years since the pandemic or something like that. Five at least. Again, we would have wished for more information about corporate office use than what is available in the official statistics. Any final question from Ted? Hi, Mikael Andersson from Handelsbanken. This potential graph, the last one here, the rent potential. We talk a lot about Hagastaden and the rest of the northern suburbs it feels like. Both Sickla and the Slakthusområdet turn out well. Is there a risk of cannibalism here? Are they far enough apart? One could imagine that the feeling here in Sickla is that you are a bit further from the city than in the Slakthusområdet, for example. You could say like this, that when you complete the calculation, you get a rent level. Of course, the rent level will vary a bit between these areas, depending on what location you have. In 2032, 2033, if you are to fully reach this potential, it is based on creating these offices in these places. If you do that, then you have probably had an office employment that is sufficient. I come back to the fact that the big risk in this picture lies in the Swedish economy, the Stockholm region's economy, and the labor market not growing. That is what you should, so to speak, follow and monitor. That is the critical factor. If it does, we have at least assumed that this production, it doesn't seem to deviate historically from the office volumes we have supplied in Stockholm. Of course, there is always a certain competitive relationship between different environments. That's just how it is. It should be so if we get back to office employment that this flight to quality that we talked about earlier, maybe you were the one who said it, means that we will have a demand for the most attractive locations, that is of course based on employment growing. Great. Thank you very much. Thank you. Linus Kjellberg, welcome up. Thank you very much. We're going to talk about urban development. Yes, indeed. The stage is yours. Go ahead. Thank you very much. Yes, how wonderful. Yes, how lovely. Now for the next half hour or so, we will really nerd down into what is my personal and in many ways the company's favorite area, city urban development. The city of the future. When you are working on this and are going to have an urban development strategy, which I will talk about first, what does Ljungberg's urban development strategy look like? Touch on the four development areas. We have the first question to ask yourself about, you need a city to keep on developing. Our four major development areas are all located in Stockholm, it is interesting to look at some basic fundamentals there. It is often you end up with a population growth. What we can state is that, relatively speaking, population will continue to develop if Sweden is at 0.2% in just the future. According to Statistics Sweden's latest, it is in the Stockholm region at 0.4% and the city of Stockholm perhaps at 0.6% or so. It continues to grow, although at a slower pace due to birth rates and strangled immigration. I also think the only thing we know is that things change, and it changes quickly. The only way to meet this is to have the ability to innovate. I think that we as Stockholmers, who are probably most people in this room, can be enormously proud of that. It is not just one ranking, but there are many rankings where Stockholm is ranked as Europe's most innovative city. Most recently, it was the EU's Regional Innovation Scoreboard. There is something damn delicious in that. It can probably also be related to the fact that we are number 2 in the world when it comes to unicorns, million-dollar valued startup companies. Only Silicon Valley is better at producing these. There is some kind of dynamic in this, and it is, of course, old. It is the old inventor engineering Sweden, Stockholm, that continues to deliver. Another thing that is a strength of our city, Stockholm, is that it is continuously also ranked somewhere between 10 to 15 place in global rankings over the most highest quality of life. The highest living quality in Oxford Economics is very well regarded. We usually end up there between 10, 15. It goes a bit up and down, but there somewhere in a global perspective. You can wonder, why should we keep going now? You do not have to remember this number today if you do not want to. The Stockholm archipelago, 3,014 islands, someone has calculated, of which the city of Stockholm is built on nine islands. That is kind of what Ted said, that there is something interesting there, that there is a geographical demarcation, that the city cannot spread out just any way. We also have that we push down. We do not want to build skyscrapers in Stockholm. This means that if you want more inner city, you have to connect something to the existing inner city. I also think that this actually leads to maybe this one, that it is a city that is very easy to like and feel good in. Now, I am admittedly empathetic, but I think it is. Surely it is the world's most beautiful city. When you should. Urban development, the next key issue. This will be the right location in this city. What is it? Where is the value potential if you are chasing value development like we do? We get to take a little short Stockholm history lesson here. It can be long too, but unfortunately, we do not have time for that, and we will take the short one now. Stockholm started here at 1251. We got our privileges for a very long time. Until the time of the great powers, it was basically on Stadsholmen that the city was what we call the Old Town today. It was in principle, or it was forbidden, to build certain buildings on the islands because you could burn it down if the Russian or the Dane came. Fortunately, that has changed. When Sweden entered its time as a great power, they laid out a grid plan and began to build Norrmalm and Södermalm more permanently. Of course, came and grew even more. The Lindhagenplanen was created in the 1870s, which divided the city into a neighborhood town. It's a bit funny to I don't know if it's the last, but I think it's the last part of the Lindhagenplanen that was written and developed in 1870, which is being built down in southeastern Södermalm today. The Persikan quarter, the Persikan where it is those streets, the blocks that are being drawn up 1877 that are now being built according to it. What's interesting here was also that outside of this is really, we'll try to illustrate the classic customs cut outside where industry and the port areas were created. You lived in the city, you went there and worked a little. This is, of course, a very simplified picture of Stockholm, I want to say at once. What then happened was that we had a Stockholm exhibition in 1930, When functionalism was seriously established as an urban design ideal in Sweden. This led to us building in places that are not visible on this map, especially during the second after World War II. That illustrates those arrows. It was a spiral where we built subways, expressways, built suburbs. Somewhere around the turn of the millennium, just before that, not only in Sweden and Stockholm, but in the whole world, a new urbanism emerged. It took place at the same time as the first major digitization with the internet, romance, and so on emerged. What happened then? That people, speaking of agglomeration effects, sought out dense mixed cities where you could meet and had a high interaction of meetings, stimuli, exchange of ideas. This also led to the city of Stockholm writing a new comprehensive plan in 1999, where they said that now the city should grow in terms of inner city, because it hadn't really done that since the 40s or something. This old harbor and the industrial ring where Slakthusområdet, Sickla, Hagastaden, Norra Station area are located. Up here we have a little Värtan and Frihamnen towards Liljeholmen and also Hammarby Sjöstad there. You can see quite clear traces of that now. It was then that the decision was made that now we will start building a dense, mixed inner city and expand the inner city. That's where there is also a large and strong demand. There you only have to look at the prices to get it confirmed. The right location, not insignificant. We have this thing with the city type. It is possible to build a city in lots of different ways. We know what we do know is that different trends will affect us and change needs and demand, whether it's technical or demographic or whatever it is, and how to find the right type of city. It's some form we see anyway. Our take on this, it is a neighborhood city as a platform or as an operating system that has proven to be very, very flexible and resilient and can accommodate a lot of different content. You can see this as an operating system, where in that corner was the milk shop in the 1920s. Now there is some small app developer who's working there. It works just as well. You find new functions, We usually think when we develop business buildings, instead of thinking that this is an office building, we think this is a business house. I think the house we're in now is a pretty good example of that. That was for the majority of its previous life. That has been the manufacturing industry in these premises. Atlas Copco manufactured its air pressure-driven pnuematic tools here. They had a school here. Eventually, it became an office and retail on the ground floor. There is somehow you have the right dimensions, chains, good houses in the right locations, and it works there. With that, you can also meet different trends and be a little flexible. This house could be healthcare. It could be universities. It can be, I don't know what the future holds. How to see the right locations will have a demand, housing, the same thing that it can happen in lots of different forms, ground floor contents. It will change and has always changed. Retail is constantly changing, but it's in the right place. With good flows, there will always be a demand for it. We have for a long time, both when we have chosen these modes and what we focus on when we develop, we are Evidens-based and base a lot of our thinking on what Ted has drawn it. The basic foundation is incredibly strong, If you put a lot of focus on creating clusters and not only putting together a bunch of houses, but also creating qualitative clusters where those who are there actually benefit from sitting together. To get flows and walkways and so on, you have a huge amount to gain. Of course, squeezing in the right kind of urban content. It is not enough to stack 14 courses in restaurants and 18 dry cleaning courses on top of each other. That doesn't make anyone happy. There is a huge difference between good and less good urban content. What Ted and Evidens call service content. We also see that there is a huge gain if we work on the right scale. That's what Annica calls it. One of our main strategies is to work with holistic areas in strong sub-markets. Instead of just working with a single building and being able to achieve after we have smashed away our costs and construction costs and get an income from project profits, we can add and work with all the value-creating tools that are about working with the public spaces, which are about building these mixed environments with lots of different contents, homes, offices, et cetera. Mixed. If you can then actually get what is this Evidens effect over time, that we get the synergy effect that the next house adds value to the already existing stock and so on. You get a self-reinforcing loop in this. If you sit and are a dominant property owner or developer in an area, I found and thought I'd recommend an article that I think is very or was very interesting in Harvard Business Review. It was now that you look at what distinguishes different areas. Why do you get the commercial success in some areas and not in others? Erik Nyman was mentioned. There are two axes here. One is commercial success measured by low vacancy rates and rising rents. The other is what they call the Knowledge Campus Index, which is very similar to the Evidens Index. It is accessibility, it is that it should be a mixed environment. They also go down on slightly more qualitative things. How that mixed environment is even more fine meshed, but also how many interactions take place in these areas. The ones that are lying around are always in all models, you know that. The top right corner is great and the best is actually a lot of Japan. We start in Tokyo with Eiai, Osaka, Gangnam in Seoul. They have managed to create several of these Shibuya. It was not traditional office spaces, but they have taken from the traditional office spaces because they have done something that is more fun and enjoyable and creates more interactions and more mix. The old areas were very monolithic, just offices, just sterile environments. That is really the lesson in this, to mix the lovely urban pytt i panna environments. That is where the demand is. Here is a Danish uncle. His name is Jan Gehl. He is one of the world's most famous urban researchers. For example, he is behind the idea of Strøget through Copenhagen, which was a car street. He says, in short, "If you are going to design a city in the best possible way," he says, "in short, a good city is a good party. You stay a little longer than you had intended." What do you work with then? You put people at the center, you work with activity and wellbeing, and you work on a human scale. It is very much about the fact that instead of putting a traffic planner to plan what the city should look like as number 1, traffic planning is allowed to come quite far down the chain. You start by looking, how do you create space? How do you create places where people want to be? What type of buildings are needed, and how do you put that whole together? These are design principles. It is possible to design a city well or badly. There is a lot of evidence on how to succeed with a successful one like this. A classic example nowadays, classic is from the 1990s. There is a bunch in New York called Project for Public Spaces that have become world-famous, at least among all urban development nerds. They did this. They have a theory that is very simple, that in order for you to want to be in a place, there must be at least 10 really good reasons for wanting to be there. You can put that both on a city scale. What are the 10 reasons to want to be in Stockholm? What 10 good pipelines are there to want to be in the Slakthusområdet area? What 10 good reasons are there to want to be in Fållanparken in the Slakthusområdet area? Very simple model but also drives a lot of creativity. What they did, they were founded in 1975. In the '90s, they got the opportunity to look at Times Square as it was cars, it was very crowded. There were way too many people for narrow sidewalks and so on. It sounded and messed up like hell. They made them paint. They got access to Times Square one weekend, they painted in a few different nice colors. Objective, nice colors and put out lots of temporary sun loungers and some sand and some food trucks. It was a huge success, it was such a success that it became permanent and looks like this today. What happened, in addition to the fact that a lot of people think it's nice and lovely, is that the property values around them. That's perhaps not very strange. Of course, if you walk out of your office or whatever it is and you see this crowd versus this, it's clear that many people appreciated this. Now we don't have Times Square in the Slaughterhouse area, not yet anyway. We have Hållgränd This is what Hållgränd looked like when we had just acquired the area. This is what Hållgränd looks like today. That's just one example of taking hold of these design ideas, both in terms of content and design, and that it has turned out this way. I catch myself a little. This has been a prerequisite for attracting tenants, of course, and getting tenants to pay rents that are not according to mathematical models in line with market conditions. We work systematically with all these things in what we call the Human City Index, where the purpose is to create a city where you feel good, you think it's fun, you think it's interesting, you think it's inspiring. We have five different categories divided by feel, measure indicators so that we develop our areas in a data-driven way. I'm not going to go through these cues, instead, I'm going to show a little film that shows why. What does it do? We shape the sustainable city of tomorrow. A city that is vibrant, human, and safe. With maximum value for people and minimal impact on the environment. A city for those of us living here today and for those who will follow. We don't just build houses, we build cities, that gives us both the power and the responsibility to make a difference. For us, sustainability isn't simply on the agenda. It is the agenda. It guides everything we do, every decision we make, every material we choose, every place we shape. Our culture of innovation drives us forward. In our city, heritage and new ideas meet. We preserve buildings, stories, and identities We reduce our footprint, we use resources wisely, we protect local ecosystems, we put people first. To us, sustainability is a human matter. It's about life and movement that fosters safety, neighborhoods that make everyday life easier, green spaces for breathing, playing and moving, and places to meet where even a simple hello matters. That's why we measure what is otherwise only felt. The Human City Index helps us understand and enhance people's experience of a place, because in the end, it all comes down to the same thing, creating places that last and bring people together. That's how we build the sustainable city of the future, not because it's the easy way, but because it's the only way. If you sum this up, 8 value-creating urban development strategies. The right city to invest in, the right location in the city with value potential. Rule of law type, the right urban development focus, evidence-based right to scale holistic areas, power of Human City Index. Then you add vision, passion, and a hell of an ambition, and you can create something that really stands out. Then I thought I'd give examples. If you take these thoughts, ideas, and then you let them flow down over the urban development areas we are working on, that was a question. Could there be cannibalism between certain areas? The risk is always there, but in our world, we have positioned this area so that you reach and after become interesting for different target groups. It is based on having different visions and different purposes. Why do you exist? Why are you interesting? Hagastaden has a vision called Ultra Urban District with a view of the world. It feels like it has gone home anyway. Slakthusområdet is Stockholm's new meeting place for food culture and experiences you can feel when you get there. At Sickla, we have a vision that obeys the Nordic region's hub for sustainability, innovation, and wellbeing. We think that it, the Nordic hub for sustainability and innovation. Then you can definitely be one of the world's best, too. Then we have Slussen, which perhaps lies more in some kind of new extension of the CBD, where the old Skeppsbron, Stockholm's old parade street, connects the Nya Slussen area with Kungsholmen and the classic CBD, where the vision, Stockholm's commercial heart from interchange to a meeting place. This is also a way of distinguishing and being clear because clarity is in some way A and O in this. In addition to the aspects that Ted has described, we believe enormously in the place. Brand intangible values are and will be much, much more important for property development, and we are absolutely convinced of this for urban development. In all other industries, intangible values are very, very highly valued, and I think we're just starting to see and understand that in our industry. What if we start with Sickla? This is what Sickla looked like when the Ljungberg Group one beautiful morning. It was acquired in 1998 that the area was acquired. At that time, Atlas Copco had been sitting here since the late 1800s conducting research, innovation, and above all, industrial production. Then it looked like this. Up here is Lugnet's industrial area. Is there anyone who visited it while it still existed? Enough is enough. Then comes the question of cogs. How many people were at the black club there? We'll talk more later. Those were the times. What's interesting is that there is no southern link. There is no cross track. It's a pretty muddy structure. The company set a new vision and said that this will be the case, Stockholm's meeting place for commerce, offices, culture, housing, and so on. One of the first things you did then at that time, Atlas Copco had moved industrial production a few years earlier to Örebro and so on. It was low price shopping and a bit like that. It was a bit of a car mechanic. It was in the old industrial production part while Atlas Copco was still in office and still has its global headquarters. One of the first things the company did then was to get to grips with this building that we now know as the Diesel Workshop, which is a cultural center. It was quite brave because it was a whole thing in this context. They created a fantastically innovative cultural center with stages, with a climbing wall, because there was also the physical body, sculpture and winds, the symphony orchestra, the county museum, and so on. It was a very early investment that the company went in and made here to also change the perception of what is Sickla. It is not a former industrial area, and it's not just a bunch of discount shopping. That is something else, we gave that a lot of prestige and kind of glittered over other things that also led to the development of office buildings. For example, this house was built on and so on and so on. It was somehow a catalyst, signature content project that created new conditions. I think it's also very important to see when an area manages to get from point A to point B, then you have to make a statement to show what you are. Are we jumping forward? Quite a few invested SEK billions, many hundreds of meetings with municipalities and companies and so on, grown something huge. Also, I think Ted was on it. That's actually how you see it here now. The urban fabric is growing together. It's not like one over there in Stockholm's inner city, and over there is Sickla. It has now, thanks to Hammarby Sjöstad, grown together, an area that in addition to this fantastic Diesel Workshop that still spins 1 million visitors a year, to compare with the culture house at Sergels Torg, which has 1.5, 1.6. Pretty cool that this small cultural center can be so successful, has just over two students in one campus. There are 7,000 people who come here every day and work in offices. It is, if I remember correctly, Stockholm's third-largest shopping center. Not to forget, we have also built a lot of condominiums up here on Nobelberget. There are also other possibilities. If you look to the east, there is a lot of land parking here. What happens, which is so wonderful with the accessibility factor in this bar, as shown earlier, is that there will be a subway entrance in this building. Here in 2030, we see that it is also a catalyst to be able to enable further development. We do that within the framework of this vision and within the framework of the 15-minute city. This concept that was invented in Paris, that everything you want, everything you need, work, school, childcare, shopping, this and that. Should you be able to reach 15 minutes from where you live? That is really the case in Sickla. Not all neighborhoods can boast of having their own ski slope. It is written in everything from Hammarbybacken over there or I guess I am a little extra happy and grateful for that. You should not forget either, it can be fun to know that there are about 4 kilometers of mine tunnels under Sickla. It is probably one of the world's most urbanly located mines, where Epiroc is still testing its machines and the next generation of machines. The question often comes, do they find any exciting minerals down there? No, they absolutely do not. It is hard granite rock, so it is very good for testing drilling rigs. What about future development? If you go from the west, tests in the area. Here we are developing housing within the framework of Nobelberget and the upcoming Norra Nobelberget, where we are just in the final stages of a detailed plan. We are also in the final stages of a detailed plan for these first 6 blocks here, Central Sickla, and it is a very flexible detailed plan that allows offices for 2 blocks. Then there are more mixed opportunities, so that you can build hotels or healthcare or schools or housing, which we think is great. We think that detailed plans with really lovely letter combinations are the best we know. The Traversan, housing right on top of the subway, then we have a little hidden JM here, Kyrkviken there. Järlasjön and Kyrkviken go in with a lake view. We have also started a detailed plan for 400 or 500 tenant-owned apartments. The reason why we started developing housing, it was really because we saw a hell of a value potential in Sickla. That was the original seed that this is too good not to do, and we still think so. Do you want to get some feeling at Sickla 2036? This is also an area to meet. If you are going to build new, you have to build very sustainably. The most sustainable way we have found is to build with wood and a wooden frame. We have said that the whole blocks that we are building now, we will build with a wooden frame to get 2 footprints down really substantially, and also build very exciting and beautiful and lovely urban environments. Here is another perspective on what it might look like, here are just these offices, then 4 more flexible blocks. There will be a little slideshow here, you have to sit and think that wood can be beautiful. There is also a lot of research that shows if you stay in wood houses, wood buildings, your heart rate drops and blood pressure and so on goes down. It is our biological disposition. We get started on nature. If there is even research that shows that it is enough with a motif wallpaper that shows a forest, you feel calmer. Strange, but true. We have already started then. This building, part of Campus Sickla, is right out on Marcusplatsen. Here are homes, Nobelberget. I think there are a few apartments left, if any. Should not stand and sell apartments here. Now I only have reflectors. I apologize if we instead jump onto the Slakthusområdet. Speaking of this, there are different target groups. It is different styles. Here it is, all of Stockholm's meeting place for food culture and experiences and the creativity engine. Here, before we made this big deal with the city of Stockholm in 2018, we had been thinking about this for several years. What will be in demand and what is the next thing? A clear theme when you look around the world are these old industrial areas that are transformed and create the elusive, have a special vibe, have a special attitude, have something that does not exist in the city. The meatball in Copenhagen is one. It is not that developed. It is mostly just restaurants. Meatpacking in New York, on the other hand, is super interesting. King's Cross in London is also very interesting. When you were trying to understand the business case in that, we met Argent, who developed King's Cross a lot. They did several things, but that was in the 2010s. Sorry for getting to this area because when they took over, it had felt like London's best rave place, but otherwise completely deadly. It was like old industrial buildings. Erik has been to concerts. Yes, it is a bit cool. I am not going to point a finger at anyone here, but I am simply jealous. They saw then and what they could lead into evidence, these are rent levels at sq ft, was that when they put Central Saint Martins Art School, when they built Granary Square that are cool, the square in front of there and got some nice retail and a little bit of good culture, then something happens with the rents. It was a step up flight of stairs. That also made it interesting suddenly for large, profitable, solid companies, such as Google, to move there. How do you get there now? That is kind of still the case, I think. Very charming, very lovely, very alive. Saint Martin's is still there. It is an incredibly nice vibe, but there are also a lot of super big companies that are there and that have moved from the traditional nice addresses in London because they are looking for something different. We did 3 days, I think it was, after we had gotten the keys to the Slakthusområdet to quickly start this thing of changing people's perception and perception. What is the Slakthusområdet? Most people had no idea about it. Some had been there and bought a Christmas ham cheaply. A few had been there at a club. For most it was only a white area. It's centrally located, there are trucks that drive Christmas ham here and there, it's a collaboration with Brilliant Minds that had its end parties and a really big, how nice it was. We did a lot of activations like this together. We have a fairly broad network in culture and events, you could say. Popaganda was there and ran his festival. We had the Parkteatern. There were exhibitions. The next step was that there were permanent establishments with a bunch of very well-chosen and fantastic, we think, restaurants, including Adam & Albin who run Solen with great success, also a lot of other lovely places and places we have fed the moose at. Here somewhere. No. Yes, we have. If you like music and good drinks, we are the ones who have been there, then you can go to us. I won't talk too much about it, they have a high system that costs like SEK 3 million-SEK 4 million with amplifiers, Japanese uncle who has been there and custom-built speakers and it's so damn good. That alone is a reason to want to be in the Slakthusområdet as well. This gang, Jacob T. and Martin, who run The Garden, familiar place, they also run The Fold. These have been conscious choices, which is why we invested in this because we saw above all that the creative industries, which is quite a broad concept, it also includes gaming and a lot of tech, music and so on. Many of their employees like and appreciate this environment, it has led to discussions, conversations and later moving in. This is the Slakthusområdet area, these slightly turquoise parts are what are Ljungberg's parts of the area. Here are the future metro entrances. It's up there where the Globe subway station is. It will just be shut down simply and replaced by these. The first phase was precisely to establish these reasons for wanting to be here. Solen, The Electricity, The Dane and Soy and so on. The next step was to establish more permanent other activities where A House did not open, co-working, Stockholm University of the Arts. We have signed an agreement with 20,000 sq m in 2030, a bit the same as Central Saint Martins in King's Cross. They will have 300 open performances per year opposite 3 arenas. It will be part of an experience area. They have, what is it, 1.5 million visitors, Avicii Arena and 3 every year then. It also has quite a few 100,000 visitors. It will be a very prominent experience area in a European context. In addition to Stockholm University of the Arts, we also have a high school. This is how Autumn opens, where the city of Stockholm is a tenant. About 30,000 sq m are leased to schools. We have made a few of those that have put the place on the map considerably. You can start with Universal Music Group, which is moving its Nordic headquarters, or has moved its Nordic headquarters here. Unless that is exposed to Stockholm's coolest, best office. Next year, I'm going to eat my cap, Haglöfs, as a memory and want to make a brand move, also moving here. Yesterday, which is a food wholesaler and also has the restaurant academy, and there is the gang that is going to Lyon and compete in cooking. The competition will sit. Suddenly it has landed in, and you can say that these players pay rent that is significantly higher than the mathematically calculated market rent level. That's close to SEK 5. Then comes the next layer and the next level. We are building this house now. It's this fantastically delicious building, then it's a mix of quite small office buildings, small but naggingly good together with hotels. This is an early sketch, but a hotel that we think can be great here. Also, not to forget, up in this corner, a lot of housing, upwards of 400 homes that we think could come very suitable. Down here, we are building other players now and have people to start moving in there. We would arrive quite late in the housing development part itself, so there will be almost a few projects. Slussen is also not a bad thing. With Slussen, our feeling is the opposite. You know a lot about this, and I can only say, because I understand that my time is running out, because I am so good at interpreting angles, you can say that we have a few different future projects. Right now, we are in the process of moving restaurants in full force here in Mälarterassen. I hope you will visit one of them this summer. We have had a successful project in the Katarinahuset. Right now, we are doing parallel sketch assignments with five super architects, and we'll choose a proposal for Lilla Katarina. As we have modestly said, this will be Stockholm's best office. With that view and with that location, we feel that we should probably be there and compete for it really hard. This is what will now be the Nobel Center, Sweden's most AI-generated building. The bottom line with Slussen, you could say that it's as ultra-urban as it gets. This is why Stockholm is located where Stockholm is. Do you have control over Söderström and Norrström, who have control over the Baltic Sea and Lake Mälaren? This is always the case. This is the fifth Slussen to be built in Stockholm's history and a unique area that we really see. It is part of the expanded CBD. There will be a lot of restaurant tips. That was not the intention at all. Or maybe it was Pelago up on the roof of Katarinahuset. If you want Stockholm's most awesome view, it is highly recommended. It's not just to talk about it's to talk about the attractiveness of sitting in these office buildings. There are these places. Is there this vibe? Are there these added values? Is it better or worse to attract talent to your company if you are sitting here? A lot of people seem to feel that things are going significantly better. I won't say anything about Hagastaden because it will be a cliffhanger until when we talk about some fairly large deal that has been carried out in Hagastaden. In summary, we see that we have four areas that are very good with very high quality as they look today, also a huge potential to add things, even silver lining on many of them. With that, I just thought I'd say the right city, the right locations, and a very evidence-based approach to really drive the world. Also because urban development is not just science, it is also about art. It's somehow science and art in combination. It will be good. That's it. I bet you have an exciting job. Yeah, absolutely. You can get the days to drive it. Now you're off the hook. Now I'm off the hook, thanks. For now, I'll go. For now, at least. There will be an opportunity to ask questions to the whole gang here afterwards, so we'll gather some questions for Linus too, I think, if anyone had any. We've used a lot of time, so I think we'll move a bit from vision and planning to the individual projects and The risk management and risk control that Team Atrium wants to apply to this. For that reason, I expect any second now to welcome Angela Berg, who is responsible for project- Thank you. I am used to dealing with Linus, you could say, and his time management. We are perfect match. You will soon notice that. We will talk about project development. Our greatest value creation. If there's anyone who has fun at work, it's me. How do we create this value? We currently have a property value at SEK 61 billion, and as Annica mentioned, we have a project portfolio of the next 40. It's not that we just create volume, but we need to optimize this return and adjust it. I thought I'd tell you about how we do it. We create net operating income, and we create project profit. This is doubly good. This is not something that we are novices at, but this is what we have been doing for many years. The bars show 10 years of intensive project development where we have gone from SEK 1 billion to SEK 3 billion. It is a large construction company that we run, and we have done it with good profitability. How are we doing now? Well, despite the recession for three years, we continue to have a high rate of investment, and we have good profitability in project operations. These are the projects that we have going on right now, and the ongoing project of SEK 8.4 billion. We still have a standing investment of SEK 4.4 billion. A little look ahead. We have made an assessment of the construction costs going forward, and this will be reflected in all the figures that will come after lunch. Here we have enlisted the help of Ted Evidens, who have with a similar model as you presented earlier, made a forecast of construction costs. We have gone on the main scenario, and their evidence says 1%. We have added inflation, so we have 3% in the numbers going forward. I thought I would relate a little more, given what has happened recently and the construction figures, that you can say that before the pandemic, we were at about 1.3%, and then we had after the pandemic and high inflation. At that time, we were at 4.5%, and then we have actually had declining numbers for the past two years of negative 1.4% and onwards. Do we make that assessment? As I said, project development is value creation with controlled risk, and this is our mission. We check risk every day, and we do so based on three different categories: market risk, execution risk, and financial risk. The idea is that we will create less volatility and fewer negative surprises. I hate surprises. I want stable projects, and that's what we strive for. If we start looking at the market risk, Annica touched on it early on, I think you mentioned. We do not start any projects without 50% of the portfolio being leased. Today, we have some projects that are started without 50%, and that is because we are building on the subway. We have no chance of building those houses if we don't do it together with the metro and the foundation that is so. We have that in the portfolio today. We have also created this thing that we call We. Super proud of this. Between Four Walls. This is our collective expertise in how we create projects. We have different chapters. We talk about our manifesto, our building blocks, the good office, and the tenant's premises. This is our ear to the rails. Here we have summarized what the market wants, and this is what we put in the fist of, for example, Ericsson, which allows us to make an early lease without knowing what it will look like. We know in more detail what the customer wants. This one we update annually, and it's a super strong card to minimize market risk. That's what I've piled up here with us defining the product. We have predictability when we are going to build, when we are going to design our architects. Our designers know this. We let a Ljungberg have it. We will have more efficient administration. Because it is the case that we have SEK 61 billion today. We are going to build 40 more. We will have twice as large a stock. Here we have a huge potential in building for more efficient administration and the technology that will come in the future. We get sustainable and flexible properties. Because just as Linus mentioned, we build business buildings that work for longer than one tenant. We can convert these buildings, we redesign in the right dimensions and the right floor heights, and we create flexible detailed plans. The other risk that I talked about is the implementation risk. We have a strategy to build in two different forms of contracting, and we strive to be at 50-50 approximately historically. Ljungberg has always built almost exclusively in shared contracts. Today, as you can see, we have a much more differentiated portfolio. Shared contracting is about having your own project management, and you knit the contract into many small contractors. There can be 40 to 50 contractors, and we are responsible for the coordination. The alternative is to buy an external contractor to handle this and share. Contracts can be done when you have a little less complexity. We may not really know the market situation, but we choose contracts from each project. Here we see that we are at SEK 61.39 right now. As I write, the form of contracting is not a purchasing issue. It is really a risk allocation, because it is the choice of form of implementation that is governed by a great deal of risk. We have financial risk management. These bars do not show the same bars that Anna will show to the one who is paying attention. This is before we have done a review of our portfolio that we are doing. We make a three-year plan every year. We work closely with this in the management management, and look at which projects should we simply run. We have clear prioritization criteria regarding cash flow, risk, and strategic value. Of course, we can pause projects, we can sell projects. We have an example of this in Hagastaden, and we can divide projects. This is how we manage risk at all times and make sure that we keep our key metrics. Those were the three risks. Now we get into a little project management, and there is always a balance between four goals. It is not difficult to work with project development if you have a lot of money, but it is important to keep the right finances, get the right quality, get the customer satisfied. We have the absolute strongest trend, sustainability, that we work. We have, as I showed earlier, a good history of running projects. We have a strong organizational ability. I have a fantastic group of people who work with this every day. We have a structural capital that we have worked with a lot in recent years to actually do the same. We have created processes. We have very clear roles. We have common ways of working, and we have scaled this over time. Just as Annica mentioned early on, we work on steering group projects. The project manager is not alone in running the project because then there can be a lot of cost control. We have other colleagues and skills involved in the project rental. Erik's gang is there, Linus' gang is there, and Anna's gang is there. We are considering all the parts, and that means that we can build in this volume that we are doing and that we will do in the future, SEK 3 billion annually. We are not dependent on people, we are dependent on systems in a good way. I thought I'd mention a few words about fair construction. It is also a form of risk management. The construction industry is the industry that is most organized crime in, and we are not a part of that. We want to make sure that the construction sector and what we build is right and proper. 2021, we chose to join Fair Play Bygg, they help us to work against this systematic crime, they do it in different ways, including all the contracts that we buy, they do a background check on, there are so many systems that we can't do it ourselves. We have taken help with that, they also do workplace checks. They get out to the workplace, they close the gates, they go through every individual in the workplace that you have the right papers and the right conditions to get a decent salary. I would like to mention a few words about sustainability. We are going to go to net zero by 2040. It's not an easy journey. It is not only we who have to do it, but all our allies. The bars show that we have done a lot already. From 2021 to 2025, we have reduced our climate footprint in the projects by 42%, we have a target trajectory how we are going to achieve this. We have cut 42%, we are very good, I must say. We don't just measure construction, as many do, but we measure both the construction phase management, the final stage, the final stage or dismantling. It's not just the construction stage. How do we do it? We set our sustainability requirements early in the process. We are already looking at it in the detailed plan. We plan in the design phase. This is very important in procurement. We must push the entire industry forward, we of course, set requirements for the entire industry. Once again, sum up Ljungbergs project development with controlled risk and stable returns. We control our risk. We work with active capital management. We have strong human and structural capital, we are doing projects that strengthen the entire company. This is how we can create the most value. We also have to be the best at managing risk. Perfect match. Yes. Linus is running the vision. You know what? I get the day off. No? No, you don't. Right now it's just you and me standing between everyone and lunch. That's not exactly a perfect match, but we'll manage. Have you taken the opportunity to ask Angela any questions? Marianne has the mic. These construction inflation figures you're showing, you mentioned some data there, but I was thinking you can forget about that data for now anyway. I think this is a question that's been close to everyone's heart. What has happened since the Middle East conflict regarding construction inflation? Have you seen anything bubbling under the surface? We actually haven't seen anything. We have received notifications from different parties where we see structural frames, for example, is something they want to notify about a potential price increase of between 3% and 5%. We haven't seen them yet, but they could be coming. There was some positive news today, and that is very much linked to Hormuzsundet There's quite a lot in all types of fastening materials on construction sites are very oil heavy. We've also received notifications of increases there, but that's around 1%, 2%. You have to know of this figure I showed, that's construction cost, and production accounts for about 50% of that, and the frame, for example, 50% of that. This percentage increase is still a pretty small part of the construction cost. You also mentioned these are quite large investment volumes. We haven't talked much about yield metrics. You haven't mentioned any risk-adjusted return. That was the closest you got. Anna will cover that. Oh. From your perspective. Oh. I'm sure you have some key performance indicators that you're forced, or your team and you are forced to work with in this. If you could wish, what is the requirement to give the project development gains do you need to have? No, we have a requirement of 20% project profit. In the business we lock the yield when we start a project. In the investment decision we make, we set a locked yield, and that's what we measure against in the projects, because otherwise you can't measure a project development if you take the yield into account. What we see in the books is taking the yield into account. Okay. That was probably 13% in Q1. You know- If I look internally at where we locked the yield when we started the projects, we're up towards 30. Okay. That means increased yield requirements in these projects that have made it. For those who don't, maybe we should describe this a bit for those who might. In the Q1 report, you talk about 13% development gains on these SEK 8.4 billion that are committed. That's how I interpreted it anyway. That's correct. That's that. Linus. Yes, there's Linus. I think you showed a bar of 20 in the projects themselves, and then icing on the cake in these urban development issues, right? Yes, sir. Angela, another thing that you mentioned, which I hope you caught, is the occupancy rate in the projects after you have this 50% requirement. A question I had intended to ask anyway: What is it that makes you below this 50%? You were very clear that it's the station building issues that are important. Yes. We can add that the subway is quite late. Yeah. This high-rise building standing here, we moved into in 2026, and the subway was supposed to be in place then, and today they're saying 2030. We are completely convinced that it will be a fantastic building once the subway is running. I believe that too, that it will be. You also touched on this contract form issue. Do you have the resources to do it, I was about to say in-house or in the shared form? Yes. I would actually say we do. Without stretching it so far that you need to expand the whole department or double the department? No, we have actually shrunk the department slightly, and are working in slightly different ways to streamline. I'm going to hand over the screen and the floor, I was about to say, to Erik Skalin, who is head of leasing, and we're going to talk about demand, tenants. After that, Annica will come up and join Erik on stage to talk about what's happening in Hagalund and this really exciting Ericsson deal. We will hand over the floor and screen to Anna Jepson before we eventually wrap up this day together at around 2:30 P.M. I hope that aligns with everyone's thoughts. You have the whole management team here. Over to you, Erik. Thank you kindly, Erik. We're going to talk a little about the rental market. I think we start in the situation we have now, quite difficult, and a fairly long period of increasing vacancies across all geographies in Stockholm. You could say that the rental market had some kind of peak in terms of vacancy at the beginning of 2019. At that time, the vacancy rate in Stockholm was 6%. Latest poll, now in 2026, the same figure is 16%. We have had a rather difficult development. It is driven not only by the historical settlement of the economy that Ted testified to earlier, but also by some other structural influencing factors. We have hybrid work like MaM. Above all, we have a shift where many businesses have gone from having growth opportunities in their existing spaces to being in a cost-saving mode where you do not pay SEK 1 more for office space than you need. This has led to the development of the vacancy that we have seen, some parts that stand out a little more than others. Norrtull has a vacancy rate today of 23%. I think that it is certainly very driven by Kista, and it is to some extent the vacancy rate in Kista right now is about 35.36%. Solna Sundbyberg also has a vacancy rate of 18%. Söderort is doing better if we look at vacancies. There is a 14% vacancy at the moment in Söderort, and as you recognize, Söderort is a bit of Ljungberg land together with the rest of the inner city, which today has 12%. CBD, as always, is doing better with the vacancy right now at 8%. If we look at the nominal rents, they have done reasonably well. You may have to remind ourselves of the inflation that we have been through. Thanks to CPI adjusted rent levels, we have actually kept up to a fairly large extent. CBD has had an evolution during this one. We are looking at this period that has had a vacancy. Searches as mentioned, started somewhere in 2019. Until today, it can be said that CBD has had a rent increase of 25% during the same period. In the same period, inflation has been 28%. CBD hasn't really kept up. The inner city, on the other hand, where we have a total nominal rent increase of 31%, a little better than the index. Söderort stands out quite a bit. Their rents have actually increased by 38%. The figure for Norrtull, where you also saw that they have the most vacancies, there has been a development during the same period, 19%. If you look at where the take-up is located, that is to say, where does the market absorb the surfaces that come out, we have seen a pretty clear flight to quality as we usually say. That is, the market prefers newly produced high-quality surfaces in good locations depending on the market, but the good micro locations in each market. There you can see that it is segmentation. We have three segmentations, A, B, and class. A, the segment accounts for a positive net outflow of approximately 10%. That includes new construction. The slightly worse part of the stock, B and C, have had negative 20% during the same period. We land somewhere at negative 10% overall over this period. Of course, this is what has driven vacancies. The surfaces that have come out have not been absorbed by the market. Do we see any improvement then? I think you can still say that you are doing what we have right now. If we look three, six months ahead, not quite the same upcoming supply in the existing stock that we have had during periods. Measured as a percentage of the total stock, additional areas are down to less than 4%. We have to go quite far back in time. If you remember the peak of the rental market in 2019 when the increase in supply was at equally low levels. Citymark from which most of these figures are based, they also have a forecast that says that in 2026, we will probably not see any increase in take-up. On the other hand, 2027, 2028 and the rental market should be able to recover. Also driven by relatively limited new construction. I have also borrowed some figures from JLL's eminent research team with the help of Erik, which shows the correlation between GDP and net lending. GDP is the bars and net lettings are the graph, as you can see. We actually go all the way back to the financial crisis. Up to today, you can see that the net trend has followed very well, whether GDP has increased or decreased. What has happened since the total crash in 2020? The turbocharging of the economy that we did by pumping in cheap capital that got GDP and stocks and pulled up the net steering somewhat. Inflation hit and pulled the legs away quite hard for the rental market. Once again, a lot of companies and businesses got into this savings mode, which we probably haven't really gotten out of, even though the net is starting to perk up. This is a European perspective, it should be said. That was also the case. The team has little scouting. I thought we'd take a look at the underlying factors. What is it that drives the demand for offices more than the purely economic drivers? Some reconnaissance about what could affect office demand. I'm one of those little ones. A small boost that somewhere should be able to affect office demand in the long run. I chose this image because it is quite telling. It's an AI startup that started advertising in San Francisco, New York, that we're going to stop hiring humans. We're going to hire Eva instead. Eva will never argue about work-life balance. What will never come in hungover to watch the World Cup half the night? What can also work a 70-hour working week without complaining at all is a campaign that has received both criticism, above all, attention. Somewhere, they have done the job. Will AI take all the jobs? Yes or no? Shouldn't I stand and answer? You can see some signs of the times. One sector that is likely to be affected quite a lot by AI is the audit firms. Looked in the "Financial Times," found a survey of the four big parts out in EY and PwC, look at how their recruitment has looked lately. You can state that the number of job ads for pure auditing services, it has actually decreased. On the other hand, it has been replaced with roles that in various ways have to do with AI. There are businesses that need to adapt, you also need to have skills and resources that can handle that transition. Is this the answer to how we will see our employment in the future or not? Yes, the future will tell. You could say that there are three scenarios. A fairly positive picture is that AI will be a productivity tool. It is mainly used to increase the output of existing staff. This means that companies are growing, they are starting new services, they need continued offices for collaboration, innovation, customer meetings, and culture. You can say that the number of employees in routine roles, it will certainly decrease, that other roles will take over and probably increase. We will have a positive effect if moderate, on office demand. If we want to be a little more negative, you can probably see that AI is perhaps above all an efficiency engine, it does not contribute to other roles, not to other services. AI simply allows us to be smaller employees doing exactly the same job. Of course, it has a negative impact on the total need for office space. If you have to guess something, you should probably guess that we will see a mix of these different scenarios. That is, some companies will reduce space because they are in an industry, they are in a business that actually has a negative impact on AI, while other industries will compensate. You can create other types of roles and other types of employment. We get a fairly neutral effect. If we isolate AI as its effect on office demand, it will be relatively neutral. I also mentioned hybrid work as a factor that has affected overall demand, and it is clear that at a time of great economic uncertainty in the I1 severe recession, cost savings have been the watchword for very many businesses and companies. You can save a few square meters of space, then it is a saving that is gladly made in the situation we are in now. What has also affected a lot has been the lack of faith in the future. There is not a company out there, possibly the defense industry excepted, that has invested in the future, that has seen growth, that has seen that it will employ more people and thus need more office space. In addition, during the pandemic, many have learned to work more hybrid. You may not need quite as many office workplaces, you see it as an opportunity to cut down on the total office space. However, this was an effect that stabilized fairly well, and of course, it arose somewhere during the pandemic where you weren't even allowed to be in the office, if you remember that. A little depending on the industry, what we look at is IT communication, finance companies, and public administration. There are slightly different degrees of office goods that these types of businesses have. With the IT sector as a slight upward, but also those that account for the least office presence at present. A pretty clear conclusion from this picture would still say that this effect has stabilized. It is quite rare that we have companies today that we talk to about offices, and that it is precisely hybrid work that makes them want to downsize. That has already been taken care of. I think like this. What happened during this period was also that a lot of businesses learned the negative effects of hybrid work. What we are seeing now is perhaps more that the pendulum is swinging back. It started with the big American companies who said that now you can come into the office here if you are going to get paid. We have had one Swedish company after another that has said the same thing. I think the interesting thing, here are two things. Firstly, that this is regardless of sector. We have the tech companies in the U.S. We have the industrial companies in Sweden, Volvo, and most recently Scania, who say that now you can come into the office five days a week. Also a game developer like Paradox, where the CEO sat in a slightly sunnier place 100% of his working hours and led the company. He moved home and thought that now everyone should probably be in the office in the future. We haven't really had an impact on office demand yet, I would think that when this new doctrine takes hold, it will again require more office space. There were quite a few companies that have really optimized their print right now. The second thing worth mentioning is the effect this will have. The union is furious when employees at Scania need to come into the office, and somewhere the pendulum has swung a little too far, first in one direction and then a little in the other direction. If you look at something that I think will drive this force to bring employees back, says that managers actually say that we believe at least eight out of 10 that hybrid work is coming. It will be overplayed in a few years. As a manager and leader, we need to have my team in place for me to be able to do my job. The same when asked if you can imagine rewarding employees who you actually see and meet in the office every day, nine out of 10 say yes, absolutely. Somewhere there should be a motivating force among employees, in that case, if you show up to the manager and then you get a better development. Another fairly strong trend is the young. We now have a generation that is entering the labor market. A generation seen as entering a working life where hybrid work was standard when they entered working life. There is no group in society that is as strong an advocate of the office as a workplace as this gang anywhere. They come out in their careers. They need to learn from colleagues and managers from the elderly. You need to get a handle on what does this job entail. They have the enormous hunger to develop, and that is best done, of course, in a context and together with others. I also think that it will make its mark on office demand in the long run. A lot has happened with how an office looks. The picture is from the '60s, but it shows two basic functions in a workplace, one of which is the individual workplace, in this case, a separate room, and a social context, in this case, in the corridor. It says something about the different functions that the office actually has to take care of. I would say that development is still underway here because an office needs to take care of both the need for individually-focused work or focused work together with others. It got a boost during the pandemic. It also needs to fulfill the function of meeting place and livelier, more active interactions with the outside world, customers, suppliers, and the like. It is also space-consuming, you should know. There are quite a few companies out there today that have found a balance in the right way. Either they have cut back too much on individual workplaces and then they have gone too much with meeting areas or the other way around. Quite a few have found a balance. Quite a few have realized that this is actually quite demanding. Speaking of what happened during the pandemic, before COVID struck, the proportion of permanent workplaces in an office was high. It was about 62%, and just three years later, the figure was 40%. I guess they have gone a little too far because if you ask the employees, this is the global survey of ISM. This is actually the question that gets the highest marks on what is the office's most important function. Yes, it's that I should be able to sit and work undisturbed, focused, and do what I have to do during the day. There aren't very many offices today that actually facilitate this. Again, this is demanding if you are to ensure that the office actually solves this task. What task should the office solve? Yes, it's quite multifaceted. I've been talking about it a bit, the office is very much a manifestation of the company's identity, culture, brand. It is in the office that culture is actually created. The office cannot be a single full house out in a field because you need to be in a context, and you need, as Ted said, to be close to quite a lot. Another trend that has come for a relatively long period now is the requirement or the desire for flexibility, where the property market or we as property owners, had traditionally been quite bad at taking into account that quite a few businesses are growing and have changed needs in quite short periods of time. We want an agreement for three, five, seven, 10 years. It rhymes quite badly with a lot, especially about smaller, fast-growing companies' once everyday life. The market has taken slightly different paths to find a way to meet demand. A number of co-working players have emerged. Our answer to this has been A House from the beginning, a collaboration with one of the players on the co-working side that we thought was best at creating conceptual contexts, which meant that their actions became some kind of breeding ground for businesses that can then grow further with Atrium Ljungberg. Perhaps above all, that there are synergy effects in the fact that A House can offer the context, the meeting place, spaces that you don't need to have in your own office. If we look at the hybrid model we have now in Sickla Central, where a subscription with A House is mandatory. You also get access to not only your own office space, but the entire context that like A House offers just such a thing as not having to have the really big meeting rooms in your room and paying for that space, which may not be used 100% over a working week. Only there have you saved the small service surcharge that we charge, you have all the other added values that you can't contribute to. Looking ahead a bit, I think that this space efficiency has still reached its limit. We've been in such a long period now of cost savings and the trend that, as Ted showed, the space efficiency that has gone from 35-40 sq m per employee to today, the most extreme case might be 10 sq m per employee, but at 10 sq m per employee, you get very little functionality. You get some workspaces, but you basically don't get any meeting rooms. Somewhere there we saw that it is starting to level out at somewhere 17.5 sq m straight out. I think that's where we'll start somewhere in the future. I also believe that hybrid work has bottomed out. We will no longer see hybrid work negatively affecting office appetite, but rather the opposite. When companies start to want employees back in the office, that pendulum will swing back even more than it already has. A basic engine that needs to be created is, of course, employment. Now it should be possible to start pointing in the right direction again, and I would like to see many analysts say the same thing. What will probably continue to affect the office market relatively strongly is that the market votes with its feet, and the market will choose what is best in each sub-market, and then quality is chosen. You choose context, you choose micro mode. Above all, the office space that enhances the company's attractiveness is chosen. Everything from recruitment opportunities to strengthening the brand and position in the market. You can say that if it is true, why are not all companies in the CBD in the absolute best properties there? It has a little bit to do with productivity, as Ted mentioned, somewhere, the ability to pay, and also a little bit depending on what industry you are in. You can have the best office in town in a completely different area, depending on the industry and segment you're in. I don't think I'm going to say much more about the rental market. Shall we talk a little about Haga? We will have some questions, maybe, Erik. [Non-English content]. He deserves a round of applause, doesn't he? What did I forget? Head of research at JLL. [Non-English content] It's going to be as big as it needs to be to meet the demand, there's actually still some potential left, I'd say, including here in Sickla, where it hasn't been open very long, but they have 100% occupancy today in their private offices, which are slightly smaller office spaces, but with the opportunity to access the entire range and the whole community. Shouldn't all office space owners have their own A House? Well, either you have your own A House. There are some who do this entirely on their own. We thought it was better to team up with someone who really does this for real and is fundamentally good at it. It requires a slightly different mindset. The real estate industry has perhaps traditionally not thought as much about service and added value in the way that co-working operators actually do. There are examples in the industry of companies that have started their own co-working that can meet the demand. I would say that we have a good, mature market of skilled co-working operators besides A House in the market today, which have had a fairly aggressive pace of development. Then they've had to scale back a bit. If you look at the structural, fundamental demand, the need for co-working, that remains strong. I don't know if you agree. I've worked in this industry for quite a few years. That flexibility for smaller companies has always been there. It's not until recent years that there is, so to speak, a product that meets that demand. I'm thinking a bit more about this feedback loop, which must be very interesting for you as a real estate owner to be part of. I think you learn an incredible amount and demand it. Speaking of polarization and flexibility and all this that we're into. Yes, we can now use A House again. They are very good at conceptualizing and finding target groups for their respective facilities. There's a profile here in Sickla with innovation, sustainability. We have a completely different one in Slakthusområdet, of course, which matches that area's profile. There'll be a new one in Hagastaden. We now have an A House in every development area that we have here in Stockholm. Of course, that becomes a sort of breeding ground for smaller companies that, of course, hopefully grow over time. Perhaps can then grow with us. Grow with the portfolio. Plus, from day one, it really becomes like that content twist that adds something. [Non-English content] That was a great question. I would say it probably depends a bit on where we are, but as I said, we have a fairly high technical standard and that's something we work on, whether it's in the existing portfolio or in the projects. It has become somewhat of an industry standard that 10 sq m per employee is what you should aim for. Then we quite often notice when we actually start detailed planning that it becomes too efficient. It doesn't make for a good office environment, and then you end up closer to 12-14 sq m, and the average is surely around there, if so. [Non-English content] That's very good question. Ericsson actually doesn't know. [Non-English content]. Ericsson doesn't know themselves. It's still some time before they are due to move in, what they have done is they have optimized these three buildings they are renting from us from a user perspective. What has been quite exciting there is that they have actually come quite far on this issue. What function should the office serve? They haven't over-optimized based on the number of workstations. They look quite a lot at what kind of functions need to be there. There are quite a lot of meeting spaces, quite a lot of spaces for smaller settings, being able to have project teams of maybe six, eight people in a room and actually have space for that. They have worked a lot on the actual design of the offices. This is early stage. My name is Fredrik Stensved. I'm with ABG. I have a question on the AI theme since you brought up that topic yourself. Jag kan inte svara nu. No, I won't demand answers from you on exactly how it will turn out, but it's sort of on that theme that I actually want to ask the question, since nobody knows today, there is speculation left and right about how this will end. Against that background or that backdrop, do you who talk to tenants and who talk to companies feel that they are hesitant to make decisions about expanding office space because they themselves don't know exactly how it will play out with AI in the coming years? Actually not because of AI and that development. That's quite rare. On the other hand, for quite a few years now, the limiting factor has been uncertainty. Will my company still exist in two, three years? Will my business grow? How big is my need for office space? How much space do I need now in relation to hybrid work and other things? Really all decisions, it almost doesn't matter what industry or what you do. There has been a lot of uncertainty. Of course, that doesn't fit very well with entering into a new lease agreement and perhaps potentially new premises, which still require you to have some kind of direction for both the current situation and five, seven years into the future. I would say that great uncertainty has affected demand, but not because of AI yet. Men Erik, du kan kommentera att det ändå har hänt ganska mycket utifrån. Jag tänker att det är ett antal ändå stora sök som är ute nu, så det börjar hända saker på marknaden. Yes, speaking of positive signals, we have quite a few larger searches out now. What you can say is that there has been no shortage of searches either during this now almost seven-year period of vacancy increases. Companies have been out searching before too. However, that was more for the purpose of putting existing premises out to competition. They've been out scanning. They might have received some firm lease proposals. They've gone back to their existing landlords and said, "We got this, can you match it?" The existing landlord matched it. What we see now in the market, it's searches that actually have a fundamental need for change in themselves. These are searches that we assess have a fairly high probability of actually leading to a move because in some cases, they've actually outgrown the premises, speaking of increasing or not. We have some companies that are actually increasing now, or they want to do an upgrade. Then we also think that, well, then it should actually lead to them making this move now. Yes, there's quite a lot of exciting stuff out in the market right now. There is. [Non-English content] Yes, it's about constantly matching the demand that exists. Regardless of whether that demand is strong or weaker, there is a demand to work with. It's simply about matching that demand with the product portfolio that you have, regardless of whether it's existing stock or if it's a new construction. New construction, you often have slightly different lead times. It's companies that actually have the opportunity to look a bit further ahead. Ericsson, for example. Yes, that's a move that will be quite far in the future, but they seem reasonably secure with what their office needs will be in the long run. Yes, it's about having the best product. You can probably say about the market we're in now that the vacancy has hit broadly. The take up has been positive in the A segment, negative in the B segment. If you're sitting with the B stock, then you're having a pretty tough time because there will always be a comparable location that is then more attractive. The market chooses that. In really strong rental markets, it's usually the case that there are too few high-quality products out there, so you're kind of forced to rent what's available. We're not in that time right now. Now there's a lot of good stuff to choose from, regardless of the sub-market, regardless of whether you want to rent a new office in CBD or if you want to rent an office in Sickla. Yes, there is plenty to choose from. Speaking of vacancy rates, if you remember the first slide I showed, I just want to say that in Stockholm, the vacancy rate for Atrium Ljungberg is 11%, which still stands up reasonably well in comparison. [Non-English content]. [Non-English content]. [Non-English content] [Non-English content] [Non-English content] [Non-English content]. It could be that someone is wondering about something. Shall we start with, no we won't do that at all. We'll start by talking about Hagastaden as a location. Linus talked about other development areas that we have and didn't talk so much about Hagastaden. I thought we'd start somewhere there. In the north of the picture you have Atrium Ljungberg's Life City right on top of the highway. We have our holdings to the west in the picture. We have 105,000 sq m today in Hagastaden. I haven't included the projects that we have and are developing now, which is Wave in the foreground, it's Trinity, and it's Corner of Ekeblad, which are the new office volumes and which are now basically fully leased to Ericsson. It's also the case that we are saving some space for urban development. The lively ground floors. We've had help from our industry colleague Castellum to get this total volume. Ericsson was out with a search. Now it's quite a long time ago, but they were looking for somewhere between 50,000 to 100,000 square meters. What do you do with that information? Well, to get 100,000 square meters, no single property developer can manage that. Instead, we joined forces with Castellum and put together a package of buildings that then became Ericsson's Nya Campus. If we look at what that means for us and in our portfolio, it's Wave, which has architectural qualities that should be suitable for HQ. I should say now that what ends up exactly in which building, that's a puzzle that Ericsson is currently putting together. Likely we have a pretty good location for a new headquarters in the form of Wave. It's about 22,000 square meters. Corner Ekeblad is 23,000 square meters. We have Trinity, which is basically right next to Wave, which is 13,000 square meters. The actual occupancy is quite far in the future. Ekeblad, we've come reasonably far there. We even have some foundation work that we're busy with right now. That's occupancy in Q3 2031, Wave and Trinity are somewhere around Q2 2033 in a preliminary schedule. Annica, we have some things that need to happen before we can start construction. From construction start, we have about 36 to 48 months of production time. What is it that needs to happen before then? We have both the land allocation agreement and the development agreement that need to be finalized. The land allocation agreements were finalized with the City of Stockholm just this past week. They are conditional on finalizing the difference, yes, redrawing the municipal boundary between Solna and Stockholm. I know there's a verbal agreement there, so that should fall into place too. We have the actual development agreement, which we estimate will be finalized in the fall of 2027. The agreements are conditional on that. We've seen that the City of Stockholm has been very proactive in this discussion. It was actually just before Christmas that we heard from the client that they needed an additional building right. We had discussions with the City of Stockholm, and they were helpful and made this building right possible. They're changing the zoning from hotel to office to enable this move for Ericsson, because it was important for Stockholm and Sweden that they got this site. Shall we look at some numbers? Yes, let's do that. As mentioned, the whole project is 59,000 sq m, while Ericsson has signed for 58,000 of those. The contracted rent is SEK 360 million. If you look at the contracted annual rent for the whole project, once we've leased both the restaurants and the parking spaces, we land at about SEK 375 million a year for 15 years. To that, you have to add that we have SEK 6.2 billion in investment. I just want to mention that because Angela mentioned that we calculate the construction investment based on the cost of an investment increasing by 3% per year. We want to be a bit cautious precisely because this is far in the future. In that SEK 6.2 billion, we've also included SEK several hundred million in a contingency pot. We might be slightly high on this investment. We'll have to see. I can just state that with this deal, it far exceeds our target of a 20% project profit. That feels really good. Is there anything else we should say? No, we've talked about the move-in date. I thought we could talk a bit about why Ericsson chose Hagastaden. They were searching quite broadly in the Stockholm region. Not all places could offer basically 100,000 sq m in one go. We had competition, we know that. We came out on top, or what is the expression? We won the deal. Ultimately, a driving force for Ericsson was, I'd say, the ability to attract and retain the absolute best talent. Yes. I'm actually going to read what Per Narvinger, vice president at Ericsson, said. He says, "Hagastaden is an excellent location for Ericsson, positioned at the heart of Stockholm's network for tech collaboration and innovation. With our new premises, we will create modern and attractive office spaces designed for collaboration and innovation. They will also help us attract future talent who will continue to drive our technology leadership." Of course, with Ericsson in place in an already strong hub for innovation this is a positive event for Hagastaden's development as a whole. Of course for us as developers, it's not a bad thing to get three projects leased before we even break ground, obviously. Exactly. Questions? Thank you. I have a question on this project margin that far exceeds 20%. 20%. Yes. What is the exit yield assumption to get there? Well, we estimate Hagastaden is slightly above 4%. We know that an industry peer might be out selling something. It will be exciting to see where that yield lands. Add the surplus. Yes, the surplus ratio. single tenant building. Precis. Multitenant. We are calculating an 85% surplus ratio. That's how we calculate it. You also have to understand that even though we designed the building as multitenant, Ericsson is also leasing all the stairwells and everything, we get a very high surplus ratio in the building. You have to keep that in mind when calculating. You mentioned the land allocation and what you're waiting for to be able to put this into the net leasing reported. Is there anything that can in any way disrupt the picture of things falling into place as you expect? I usually say that this is business as usual for us. We built in Hagastaden before. We build in other complex locations, and I see that we have a very good relationship with the city of Stockholm. There are other authorities, the Swedish Transport Administration, for example. That's a party that is complex to have a direct dialogue with, but we managed that before too. There might be a slight delay in that case, but this is a project development that's been ongoing for a long time, and the Transport Administration has been involved the whole way. For these final parts, they are also planning for it right now. I also know that with this client, there will also be heavy pressure to finish on time. I'm completely convinced they will help with that. A warm thank you for a very interesting information session so far. I would like to ask, is there anything written into Ericsson's, so to speak, security clause if there were to be some form of delay that would cost on your end something? Is there anything? Thank you. You can answer that. Thank you. No. We have handled that risk quite well. It is the kind that one can be in when we can start the construction. Then that risk is completely shared with the tenant. The answer is no. I wonder if there were to be some kind of delay, how long is Ericsson's contract over in Kista, so to speak, don't have to jump to another one? Thank you. If you put it this way, given the situation in Kista, it won't be a problem for them to stay there for a longer period. That was a creative answer. We have learned from the availability, we become better and better all the time with that. It is difficult to find anything negative about this. This is only fun. It is a fantastic customer you are getting, I must say. It is only very exciting news. If we continue on the Kista track here, you are also a shareholder in Kista. That was not what this was about. This is deep water for me. That question we have not approved at all. Think out loud here about your own commitment in Kista. I can note that we have sold properties over time in Kista. We have two left, that's less than 1% of our property value, so it's a fairly small share. We have Stockholm University as a tenant. We'll have to see a bit of the transformation that Kista now has to go through. The advantage is that now everyone knows Ericsson will move, and the city of Stockholm has done a lot of initial work to put a lot of focus on Kista. We have a good location relative to Arlanda. We know that government agencies, the armed forces, something could turn out very well for the area, but some kind of profile change must happen here. I suspect that you have taken this into account in the valuations you have made of your assets in Kista. [Non-English content] [Non-English content] [Non-English content] [Non-English content]. [Non-English content] We have 15-year agreements in Stockholm. We move into in five years. It's quite a long time before that expires. I was asked about that on TV. [Non-English content] Hagastaden has completely different urban qualities, which means that even if Ericsson wanted to downsize over time, I don't see that as a problem based on the urban qualities that exist. It will be a part of Stockholm's inner city over time. We also have a fairly long agreement in Gothenburg. There are six years remaining on that. We can also add that even though we have now leased three buildings to one large tenant, we haven't compromised on anything in the structure of any of these buildings. That the day, whether it's in 30 years or 100 years, there's still a very high possibility of leasing this again as multi-tenant. There are no structural interventions that negatively affect any of the buildings. A bit of the Ericsson theme, on the leasing theme more generally. You mentioned that there were some larger searches out now. I was wondering if you could say something, what you think about timing when they will reach the finish line, if you look at it as an aggregate, is it net more volume or less? Yes, net more. That's also partly because we've come from a relatively weak period. Something happened in Q1 this year from a quite positive Q4 with quite a lot of activity in the market to a more hesitant situation during Q1. It has picked up quite nicely over the last one and a half months. I think, as I said, the substance of these searches is quite good. I would guess that quite a few of these slightly larger searches will have landed on some form of short list before the summer holidays, then a process during the autumn to contract the new locations. [Non-English content] Exactly. It won't take 12 months, but this was an exceptionally large deal. There are long lead times, that's true, but usually a normal, slightly larger process of around maybe 10,000 sq m, that takes at least 6 months. Tell us a bit about the collaboration you've had with Castellum during this journey, if you can. [Non-English content] Exactly. You could say that this pitch, it was largely about selling Hagastaden as the geography we deemed suitable for Ericsson. It became an individual negotiation, really per property, where we, of course, handled them completely separately. [Non-English content] [Non-English content] [Non-English content] [Non-English content] [Non-English content] I can actually remind you of what Angela mentioned in our work with Between Four Walls and our, so to speak, standard product, which is not some kind of basic form of boring, but rather upgraded and with a fairly high quality of detail in every component to build an office. That is the basis that we actually, when it comes to the design of these spaces for Ericsson, have built upon. Even though Wave and Trinity are in very early stages, we could be quite detailed in what kind of product and that you will be leasing. A great piece of work to have behind us. [Non-English content] [Non-English content] [Non-English content] [Non-English content] Of course, this has a positive impact on the market in every way, and perhaps above all in terms of urban development opportunities. Now we're bringing in a foundation to work on activating the ground floors in the additional buildings we're constructing in the area. We're also giving a boost really to other developers in the area that the substance is coming, which we know is coming. [Non-English content] Both regarding investments, financing needs, expectations of how the balance sheet, asset base, rental income and so on will [Non-English content] We have talked about it. The great danger that lies in the future. We have talked about the rental market and we have gained a picture of what the rent levels may look like in our areas in the future. We have also received a description of how strategically we work with urban development and what qualities our areas have. We have learned how to control our projects with an iron fist. Only one question remains. That's: What does this mean for our numbers? I thought we would spend the next 30-35 minutes shedding some light on that. We have done a simulation. I will probably repeat this several times during the day, but I emphasize it already now that it is a simulation, not a forecast. What we have done, it is a simulation where we have really limited ourselves to varying a few parameters. Actually, almost only one parameter is the rent level. We've tried to keep everything else as constant as possible so that we can highlight the impact of what Ted was actually talking about and a lot of the questions that have been asked here today. I have received some references to this he will talk about as well, and I think I will answer most of the questions that have been asked. Otherwise, you will have to remember them and take them for later. I will highlight six different areas. We will first look at the rate of investment. There is some kind of basis in it all, and based on that, we will look at growth in property value. We will look at what this means in terms of funding needs and our financial KPIs. We will touch on profit from property management and net asset value development. Finally, we will mention a few words about return on equity, which is our main goal. This is what we have to look forward to. Before we go in and look at the future and start doing these simulations, I just want to look back a little so that we have a common picture of where we come from. Angela has already shown this graph today. Then it wasn't quite as colorful because then all the bars had one and the same color. That was the graph you remember that we have gone in 10 years from investing SEK 1 billion a year to approaching SEK 3 billion that we was in 2025. What you can see here in this picture is that we have this blue part of the bars that are tenant-owned projects. It's a type of business that we've added along the way. Relatively small share of total investments, but that proportion will be able to increase in the future. We don't have anything like that, but almost 40% of the building rights in our portfolio are residential building rights, so you will see that in the future. We have the yellow part, which is investments in our management properties. There we have worked historically, intensively to invest in our properties to raise the quality of that portfolio to the very high quality that we actually have today in the existing portfolio. Looking ahead, we estimate that we will be at approximately 1% of the property value in investments in the existing portfolio. It would make a little over SEK 500 million that we estimate going forward. That's what I'll include in our simulations as well. It can vary a bit from year to year due to the rental, and which tenant adaptations we will make. We add acquisitions and sales as well. The last picture that you saw, it was actually investments in existing properties in projects. We have actually also acquired some properties, and we have sold some properties over the years. There are these gray parts. Here are acquisitions that we have made, and they are acquisitions partly by Mark. For example, the Slakthusområdet that we did here in 2018, 2019. We bought in 2022, and we bought the latest management house in the portfolio. It was the industrial center in Hagastaden. We have also sold properties historically, and this has been partly divestments of non-strategic holdings, but also as part of actually financing our project development. It's a tool that we have in our toolbox and an opportunity that you can devote yourself to in the future. You can see here how the net investments have varied over time. You have seen that too. Angela had it with some cards. We have done great project profits historically. If you have fun summing up these 10 years, you can state that this will be SEK 4.1 billion in total. If you were to also sum up this green curve that is project investments, it is SEK 14.7 billion now, I think. Now it starts to beat in my head. I can tell you that if you take it and divide it by that, it will be 28%. It is not really fair to do it that way because these SEK 4.1 billion. It's not quite the same investments that are in this. If you think about projects, there is this first year. It is investments that have been taken before that are actually included in those project profits. At the same time, we have project profit here in recent years. The investments here, they are for projects whose results will be counted later. You would make the small adjustment, but then the figure will be even higher than 28%. We've delivered project profits historically. Just to break it off a bit, not just the graph, because there will be quite a lot of graphs from my side. I included a few examples of investments that we have made historically and where we have made good project profits. I am a little struck when I look at this picture of the breadth that we have actually done housing projects with different forms of tenure, and we have done commercial projects. We have done new construction projects, but we have also done very successful remodeling extension projects over the years. The ones that stand out here are perhaps these nice office projects with Sickla Front there with a 33% project profit. We have our big star with Life City, where we made a 95% project profit, but also in recent years, 2 very nice rebuilding projects with Katarinahuset in Slussen and with the PV-palatset in Hagastaden. Enough about the history. Should we look ahead? I took this one. Old curves or old graphs that you saw where we saw the last 10 years. I have added eight years to 2026 to 2033. These are not the same investment volumes as Angela showed. Do you remember when you set investment volumes based on what is possible for us to invest each year? That is when the project should actually be ready to start. We do a job of prioritizing between the projects, and we, as have also been mentioned during the day, we want 50% rented out to start a project, and we will not start projects if the balance sheet cannot handle it. We make that assessment all the time. I also want to emphasize that this is not to be regarded as a forecast and hardly even a plan. It is not possible to make a forecast for what you will start for projects in 2033, but you can have an idea about it. What you're seeing here are the investments that are the basis for the simulations that we're going to see down the line. Bring this one, this volume. You can see that there are quite large volumes. By 2030, we will be up to almost SEK 5 billion, SEK 4.8 billion, and high levels also in the future. I have received a number of questions. How can you manage to finance these major projects that you have embarked on? If you do the exercise that you actually only put the projects that we have going on right now, where there is actually only one project that will run after 2028, and that is precisely the Stockholm University of the Arts in the Slakthusområdet area that will run until 2030. We put the projects on Ericsson according to the timetable that was just presented here. The bar for 2030 will only be SEK 2.1 billion, and that is the highest of the bars going forward. So far we don't have any volumes at all that we can't handle. We look further at this, you will see that just as I mentioned, the condominium deal, a relatively small proportion will increase in this simulation going forward, and you will clearly see what the effect of it will be in the future. It is simply the case that we now have building rights, partly here in Sickla, where we will be able to build in different places. Do you remember Linus's presentation with Kyrkviken, Nobelberget? We can also get started with housing development, the Slakthusområdet area, and here is this 1% at the bottom that I told about. Here we have a selection of the future project investments. I think maybe Linus showed many of these pictures, but here we have, for example, Nobelberget, the next stage tenant-owned apartments in Sickla. We have the three projects for Ericsson. We have who will be in the simulations with Slussen or both the shopping center and this Lilla Katarina, the best office building in town. We have two examples here from the Slakthusområdet. We have a lot of future projects in the Slakthusområdet area. I chose to include a center that is a redevelopment project that we have in the Slakthusområdet and then the hotel as well. There are many more projects there. If we look at net investments, in this simulation, we do not include any acquisitions or sales of investment properties. What we see here in terms of gray bars that are acquisitions, it is simply access to land. Above all, 2028, 2029, 2030. At that time, we had access in Hagastaden, which, among other things, is building up the bars. What we see that is in terms of sales, it is the BRF projects, you remember. They slowed down quite a bit in 2030, somewhere in 2032-2033. We start to get that money back, it will reduce investments quite significantly. That blue curve on net investments, you will see more of that during the day after dinner. To the simulations. Now, I'll say it again, these are simulations, not forecasts. If we had made forecasts, we might have varied some additional assumptions. To illustrate the effect of urban development and what Ted and what Linus has talked about, we have chosen to lock in as many parameters as we can, so to speak. What we are actually doing is that we are looking at what happens if the rent levels are according to what Evidens forecasts. We submit our pipeline with the investments that you just saw, we lock in all the other parameters as they stand today. What happens then? Index 2% per year is the assumption. When it comes to Evidens, how have we applied these levels? It is the case that Ted did not show that today. They make their forecast per area and per year. You can kind of put your finger in there and check that. 2029, the Slakthusområdet area and the rent level are there. 2031 in Sickla, it's there. Those are the levels that we've used for this simulation. We have also applied it to offices in our urban development areas. That is, not to other segments, not to retail or any other segments, and not in any other areas, not Gothenburg, not in Malmö, nor in Liljeholmen or Barkarby, but only our four major development areas. When it comes to projects, we have made an assumption that all unrented premises will be rented out according to the level that prevails according to Evidens in the year that the project is to start. All leased premises, such as Ericsson, there we have a contract, we let it lie throughout the period. When it comes to existing and in the administration, we do exactly the opposite. We apply Evidens rent levels when a contract expires. We assume that the contract expires that year. We read the rent level in that area that year. We assume to renegotiate at that rent. At the same time, we have no new development whatsoever. The vacancy rate in the existing stock remains at the same level. Other properties are developing according to the index. Costs are also developing according to the index. However, construction costs are what I should have included here, but they are in our project calculations per default with a 3% development rate. As I mentioned, the other variables are left unchanged. We do not touch what the stock will be. We do not touch the required rate of return. We do not touch the average interest rate. Everything to highlight the effects of Evidens. Yes. I guess you get after you can comment that when you do that simulation, it may not be a reasonable assumption to see that rents develop so strongly in offices and that nothing happens with handles. I think there's a lot of potential in that, but now the simulation is done this way, so we're highlighting the effect of development in office space in these four areas. What was it that you were thinking of? How good. Now we start to get into the interesting stuff. What happens now? Let's start with our projects and this pipeline that I showed you. Now it's rental income we're talking about, so now it's only the commercial projects that are visible here. You have the green bars, which are rental income on completion. It is accumulated here, as you understand. It is clear that as we complete new projects, this green bar will get higher and higher on it. We have added the index effect. How much additional rental income do we get? If we were only to get index development by 2% per year, we have hung up, what happens now? If the contracts are signed according to Evidens rent levels instead, how much higher would the rents be, our projects? Remember, it's just those parts. Again, the Ericsson contracts are with what they're signed on, you can see here that we will, in that scenario, get 19% higher rental income in 2033 than if we were to only get index development. If we apply Evidens rent levels. In fact, they are not. Models a 5% standard vacancy rate in the project so that not fully. There is a high level of occupancy, and at the same time, I think we are pretty much in agreement that projects are where the greatest demand is. Over time, we think it is a reasonable assessment to make in this context. There is a standard vacancy in this. Take the next picture. It goes over to the existing stock, and it is now. This is kind of the core of Atrium Ljungberg urban development strategy. This is where the whole finesse of taking a holistic approach to large contiguous areas and conducting project development to get growth in rental income according to the top graph and project profits. Also that it spills over to the existing stock. We are raising rents in the entire area, so if we can renegotiate all rents according to what I just described to Evidens levels, then by 2033, we will have 24% higher rental income in the existing portfolio than we would have had if we only had Evidens development. This is where the core of our business concept and strategy lies. I have also added so that you get an overall picture. What will this rental development be like if we actually add these light green parts that are rental income otherwise existing? You remember? There we only apply indexes. We have got a 2% index increase that is visible in these yellow parts. We will go from SEK 3 billion in 2026 to approximately SEK 5.3 billion in 2033 with the investments that I showed that pace and with this Evidens effect. We do the same exercise on property value. We see a rough or we see a similar development. Here we have divided the investments into the investment itself and into the project profit, which is a little over 20%. You have to remember that we get this Evidens effect here. We get much higher project profits if we manage to get that effect there. It's the same here, property value, existing offices in our development areas. This is the SEK 8 billion that gray represents in 2030. That one is SEK 5 billion. Total SEK 13 billion in increased property value. If we get the rent development that there is potential in. Only if you have to sum it up, in 2025, SEK 3 billion. In 2033, SEK 5.3 billion. Rental income. This corresponds to an annual growth rate of 7.5%. Property value SEK 59 billion. Now it's just the investment properties, not the housing transaction. That figure would be SEK 112 billion and an average growth rate of 8.2% per year until 2033 Evidens effect. In summary, SEK 600 million more in rental income. If we get the rent development that we forecast with Evidens and SEK 13 billion, as I mentioned, 13% higher value with Evidens effect, as we also touched on a little earlier. A larger proportion of the portfolio will be located in Stockholm. We go from 80%, if you include the entire stock, to about 88%, just by implementing our pipeline, which we have in Stockholm. Should we look at the areas as well? This is quite exciting, I personally think if you look at this. You really see what the composition of our areas looks like today and what will happen in the future. If we start with Hagastaden. If you just look at the 2026 bars there, you can see quite clearly that a large part of the stock in Hagastaden is offices. That is this slightly darker green color that symbolizes that it is, so to speak, included in the simulation and is listed according to Evidens, a slightly lower proportion of other, which is the light green part of the bar. You can clearly see the effect here in 2031 to 2031. The first Ericsson project is completed, 2033. It's time again. Here we see a very clear effect of our project development. I will remind you that we apply no Evidens whatsoever, rent at Hagastaden, as we have actually rented out almost all the projects. That Evidens effect you see where it is linked to the existing portfolio and that we see that we can raise rents gradually. A little on that theme, that they have called Annic a already and wondered, "Can you rent an office in Hagastaden?" It is clear that it is easy to believe that we will be able to succeed with this, to raise rents above just the index in Hagastaden. If we take Sickla, which today is our largest area. Here we see if we start with the 2026 bars, we see that there is a more even distribution between offices and other activities. Here we have this cityscape with a very mixed activity already today. This is our area that has perhaps come the furthest. Here we do not have as much funding from projects. It is clear that we know that we have a metro that will come in 2030. If you look in that direction where a lot of what is to be built is to be built, we actually have existing businesses today. Even though it is fairly low exploited, we have cash flows. That in turn means that we are not really in a hurry, in Sickla we can wait, and make sure the timing is right. With that said, it is clear that if we make a rental and we have a customer, we will start projects in Sickla later. It is not visible in these bars for rental income, we have a lot of BRF projects in Sickla as well that will add to the area as a whole, of course. We get an Evidencs effect here, both linked to the existing stock and also linked to the projects that are in the pipeline. If we look at the Slakthusområdet area, the picture is almost the opposite of Sickla here. This is our smallest area today if you look at rental income in the existing portfolio. We have lots of projects. Here you could say that here, the situation is also the opposite. For every project that we can add and complete in the Slakthusområdet area, we get closer to succeeding in raising rents and creating more attractiveness in the area. Here it is more important for us to actually keep a good pace so that we can get there. Here you can see that there are huge investments that we forecast for the future in the Slakthusområdet, then a good Evidens effect. Finally, we have Södermalm. We chose to include both Medborgarplatsen and Slussen here. Here too we have a fairly noble office. We have a number of projects with Söderhallarna coming here. Söderhallarna registration, the terrace, we also have Lilla Katarina and Handelsplatsen who come in and see that there is potential here too. Even though today it is already an urban environment to actually have a good effect on rents if we get this development as evidence predicts. What about financing? Yes. You have this blue line here, it was the net investment curve that I showed earlier. You remember it goes up quite sharply there around 2030, then slowly down here when we start to complete housing projects. Here you can see that the need for financing is clearly increasing, 2028-2031. We are somewhere between SEK 2.5 billion-SEK 3.5 billion. A little depends on whether you then get this evidence effect that is the green bar or if you would not get it. Then a little more funding is needed, of course. These graphs don't say much, but it will be interesting to see what happens to the financial key figures then if you have to borrow this much money. It looks like this. We start with the loan-to-value ratio, which is the bars and the green line or green bars. That is if we were to get this Evidens effect, we see quite clearly here that we are staying at a reassuring margin below 45%, which is our goal or ours or mine, so to speak. Our internal limit that we want to be below. If we are not allowed to rent the development according to Evidens, we actually start here when it will be most intense to pace up above these levels. You have to remember what I said at the beginning that we have not committed to investing close to SEK 5 billion, we are doing so as we feel that we can manage that balance sheet in terms of balance. I think when you look at this, that these are not unmanageable levels. As I mentioned, we have the opportunity to, for example, sell property to be able to finance our project portfolio. Clearly, manageable levels regardless of which way the rents take. If we look at the interest coverage, we start with the purple line. There is almost no need to comment on it. It soars. As you can see, we will have this effect, we will have a very good ability to pay our interest rates going forward. If we look at the gray line, which is then completely without any effect on rents, only index development. Even then, we are and pace a stable around 2.8 to 3, which we still with a good margin above our goal of 2, it ticks up towards the end when the net investments go down. Now it's starting to get even more. Now we will be further down in the income statement, more and more exciting. What about the profit from property management? What happens if we go that far down? Yes. We see a very steep slope in the profit from property management as well. Our bars here. The fact is that there is a total increase of 110% in management profit if that were to happen. We are going from SEK 1.3 billion in 2025 to SEK 2.7 billion in 2033, that is an increase of almost 10% per year. If you were to calculate it, also the net asset value, there it comes to SEK 115 per share if we expect to follow our dividend policy. Do not touch any other assumptions that I mentioned, we are distributing a third of the management result. That is these little pink dots that you see. Yes, we will have a development in net asset value where we go from SEK 54 as we speak to SEK 115 with this simulation. Now I take the opportunity to remind you, this is a simulation, not a forecast. If we had made a forecast, we would probably have varied other parameters as well. I also want to take the opportunity to remind you that there is still some upside there. What Annica was talking about, it is of course quite an unlikely assumption really that you would get this rent development in offices and that it would not spill over to any other segments. I think there is a lot of potential also in the vacant degree. It is not included here. It is lying still. Renting out, even in the existing stock, would be something you would like to add to this if you were to make a forecast. What about return on equity? Yes, this is how it has looked historically. Some really good years, I guess you have to say here. 2016, 2019, and 2021 and 2022. A little tougher in 2020. The pandemic and then recession. A little tougher later this year, too. Overall, as if by chance, we end up at 10.1% on average per year. We have achieved our financial targets for the last 10 years if you count an average. What about the future with this simulation? We go and calculate our key figure, and you can see that the return on equity will have a positive development. It points straight upwards along this entire eight-year period. We will reach our goal in 2028, it will continue upwards. Should you draw a cut on this? Even if 2026 drags down a bit, this one is well over 10% as well, average. About Evidens becomes a reality, we continue to develop our areas and make them as wonderful as Linus described, we keep the projects in place so that we do not lose any money there. We are on our way to 115 SEK at a rapid pace. In a rapid pace. Yes. You don't have to wait until 2033. Exactly. We will get to reap some benefits along the way, too. A bit warm up here on stage too. Nice. This is not surprising. No, definitely. No. No. We've been holding this for a long time, now finally we managed to find a way where we can actually put this into numbers too. What we believe in so much connected to our urban development and our areas. [Non-English content] You can manage it yourselves? If we are to believe these numbers, [Non-English content]. Pace that we both have a market for and that we then manage organizationally to carry out and at the same time control the risk. Of course, if we had an opportunity and the market became super hot to start even more projects, we would have to think about [Non-English content] How many projects was this in aggregate in your simulations compared to the 40 we talked about earlier? There was about SEK 25 billion that lies in these calculations. A fairly large part of the portfolio, but not the entire portfolio is not completed. [Non-English content] Yes,[Non-English content]. We have not modeled either any acquisitions or any sales of investment properties. Okay. How do you reason about[Non-English content]. [Non-English content]. What you can add to that, which is quite nice, is that we have a good situation. If you compare with perhaps a traditional housing developer, they generally finance the project with construction loans and then it's the bank that tells you what sales rate you need to have. Here we have the opportunity ourselves to start when we feel confident that we have tested the market and know what we are doing, so to speak. That's a huge advantage actually. [Non-English content] That's Sickla. There we have most of the residential building rights. We have quite a lot of residential building rights in the Slakthus area as well. They are a bit further ahead in time. I think it's 2030, 2031. We have a lot of residential building rights in the Slakthus area as well, but still mostly here in Sickla. Byggande och building on Nobelberget. [Non-English content]. [Non-English content]. It is probably common to both of these areas that if you look at it from a residential development perspective, these are demographically very strong areas that we're moving in with both the Slakthus area and Sickla. There is a good ability to pay [Non-English content]. [Non-English content]. [Non-English content]. [Non-English content]. [Non-English content]. [Non-English content]. [Non-English content]. [Non-English content]? [Non-English content]. [Non-English content]. [Non-English content]. [Non-English content] [Non-English content] I'll answer as Annica then showed very clearly that we set our three-year plan and we do that every year. We look at which projects we will make the most money on. A lot of it is also linked to how leasing has gone in other areas. We set that plan very systematically from year to year to make those choices going forward. If we do fantastic leasing, then we will sell more existing properties. We have to weigh this all the time based on what the balance sheet can handle. [Non-English content]. [Non-English content]? [Non-English content]. [Non-English content]. [Non-English content] [Non-English content]. [Non-English content]. Exact. [Non-English content]. [Non-English content] [Non-English content]. [Non-English content] to the previous years results was slightly larger than a third, slightly higher, 36%, if I remember correctly, of the income from property management. As I said, this is no afterthought other than that I've decided what assumptions we make, then it's just pure math. [Non-English content] [Non-English content] [Non-English content] [Non-English content] [Non-English content] [Non-English content] What happens if the interest rate, if things get turbulent in the world, if the interest rate goes up one or two percentage points beyond what you might have calculated or hoped for? How much trouble does that cause, so to speak? In short term, we have a high proportion of fixed interest rates in our portfolio. Of course, we don't have a fixed interest period that is infinite. In the short term it has an effect. It does every quarter because we constantly have maturities, but not a huge effect in the short term. Of course, if the interest rate were to be one or two percentage points high over a long period, yes, it would have a major effect. You'd have to do a different calculation than this one. Johan Ljungberg, [Non-English content] Yes, I absolutely want to do that. I thought I would start by thanking you all for being here and taking your time. It is pretty busy times before the summer. I would like to say that as Chairman of the Board, and thus ultimately responsible, and also a major shareholder, I am very happy and excited even to listen to you on a day like this. You have to keep in mind that I have actually seen and heard all this before, but I stay. I am still very happy. To achieve all this, you need a lot of things. We have talked about that today. It will be rented out, it will be built, and lots of things. It also requires a long-term perspective, I would argue. A long-term approach in the company, I feel that it exists in every way and has always existed, and I will partly return to that, and also a long-term approach on the ownership side. I thought I would specifically highlight our view of it a little bit, the long-term ownership approach. To do that, I thought I would back the band a bit. To be precise, 25 years. Today we have looked eight years ahead, you could say. If we go back 25 years, then I was elected as a deputy member of the board of Ljungberg Gruppen. It was called at the time, and it is a quarter of a century ago, so it is quite a long time. You can state that in that time, a very lot has happened. There have been major changes. The property value was about SEK 4 billion, a little over maybe, and today it is SEK 60 billion. There are, I think, actually only three properties out of the 71 we have today that we own then in 2001. It happens to be a property in Hagastaden. That is one of our four areas. If I remember correctly, two properties here in Sickla, for Sickla. We simply have two properties, even though it is a very large area. In other words, one number two of our four major areas we have talked about today. Atrium Ljungberg was then called Ljungberg Gruppen, and there was a merger in 2006 when we got an additional long-term owner and largest shareholder in terms of capital. That echoes in here. He walked. Conny was here earlier today, Slussen actually came in, which is our third one, three of the four areas we have talked about today. All of these have a huge development potential going forward. It is also the case that they have actually been around for a long time. It is not something that we came up with the day before yesterday, that these are these areas, but they have been in the company's history for a long, long time. As I said, a lot has changed, but a lot is the same. I feel that already in 2001, you were considered a very good project developer Good project implementer. It is in many ways the two qualities that actually led to the Atrium being able to be done. As I said, was something that existed then, and that I feel exists today, is a long-term perspective and also a long-term perspective on the ownership side. During these 25 years as a major owner, we have not sold a single share externally. There have been some transactions between family members or family companies controlled by the family. We have simply increased our net ownership almost all the time. As recently as two weeks ago, the day before, a very large owner sold all his shares so that it is possible to buy shares cheaper today than I bought them in the last million shares. Anyway, we are long-term in our ownership, and we simply intend to remain so. Then I thought I'd end with the two small, actually quite unimportant, but maybe still somewhat on something ways important events or things as if you have looked back 25 years. If you look eight years ahead now, it means that if I'm still on the board, which may not be obvious, but if I am, then I'll have been on the board exactly half my life. If so, it is a great joy. It is already a great joy, but it will be an even greater joy. What is perhaps even more important is that now we should say October or November 2018. For some inexplicable reason, I decided to take my wife on a car ride through the Slakthusområdet area on a Saturday evening in November 2018. It's raining at an angle, it's three or four degrees, it's dark as hell, we go in the car. My wife, she's American, so she says, "What the hell did you buy in Slakthuset" Because it actually felt scary, and she doesn't use the word hell, but a much worse word that I am not going to say here. Anyway, we often have guests from the U.S. here and had 14 culturally highly interested Americans visit here two weeks ago, then we went to Solen. Basically exactly the same place as eight years earlier. We judged it to be scary, cold, dark and mischievous. It's thanks to you that I think it's a long-term perspective for real. I'll stop there. Thank you for being here. Thank you. Thank you very much, Johan. Annica, shall we sum up the day as best we can? Yes. How do you sum up such a fantastic day? First of all, I want to thank everyone in the leadership team who does a fantastic job every day with your wisdom and commitment. I want to thank you for coming here today. I really hope you take with you what this urban development vein actually does in terms of building value in the company and in our properties. This one I know we will be following up on going forward. I look forward to standing here in 2033. Very fun, and we want to thank you from our side. You want to say something? Thank you, Annica. I also want to thank the team, of course, who invited themselves. Very nice to hear. I also think that all of you who represent property owners now know what you need to do, because this is what it takes for Sweden to win football matches. Otherwise, there won't be any wins. If you have any further questions, we are just a phone call away if there's anything. Thank you so much