Slides
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CONFERENCE CALL Q4 2025
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Active property and portfolio management ensures strong financial performance and provides excellent opportunities for a continuation to execute value-added transactions Strong property development platform enabling continued growth regardless of the situation on the transaction market The Balder share have yielded significant shareholder returns over time with NAV growth per share of +25% per year since 2005 Solid fundamentals and benign demographics with 80% of the portfolio in capitals and larger cities supported by structural need for housing and offices One of the largest and most well diversified property companies in the Nordic region both in terms of asset and location BALDER AT A GLANCE PORTFOLIO VALUE AVAILABLE LIQUIDITY INTEREST COVERAGE RATIO OFFICIAL RATING AVG. LEASE DURATION 10 LARGEST LEASES OCCUPANCY RATE NAV PER SHARE NET DEBT TO TOTAL ASSETS NAV GROWTH PER YEAR SINCE 2005 S&P RATINGS BBB % 95 YEARS 13.9 SEK BILLION % 4 8.1 TIMES 2.7 SEK BILLION 24 SEK 94.0 % 25 PORTFOLIO CARRYING VALUE229 2 54% 46% Residential Commercial
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3 FASTIGHETS AB BALDER Q4 2025 • Rental income SEK 3,452m, increase 4% • Net operating income SEK 2,547m, increase 4% • Profit from property management per share increase of 4%, to 1.34 SEK/share • Profit from property management in current earnings capacity 5.06 SEK/share, decrease 7% compared to same period last year • Net debt to total assets 48.1% • Like for like rental growth 2.7% • NAV 93.96 SEK/share STOCKHOLM KUNGSBACKEN 8 COMMERCIAL
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CURRENT EARNINGS CAPACITY 2025 2025 2025 2025 2024 2024 2024 2024 2023 SEKm 31 Dec 30 Sep 30 Jun 31 Mar 31 Dec 30 Sep 30 Jun 31 Mar 31 Dec Rental income 13,800 13,800 13,700 13,500 13,800 13,000 12,800 12,700 12,400 Property costs -3,300 -3,300 -3,300 -3,200 -3,400 -3,200 -3,150 -3,100 -3,050 Net operating income 10,500 10,500 10,400 10,300 10,400 9,800 9,650 9,600 9,350 Surplus ratio 76% 76% 76% 76% 75% 75% 75% 76% 75% Management and administrative costs -1,100 -1,100 -1,100 -1,100 -1,100 -1,100 -1,100 -1,100 -1,100 Profit from property management from associated companies 1,200 1,900 1,900 1,900 1,900 2,000 2,000 1,950 1,950 Operating profit 10,600 11,300 11,200 11,100 11,200 10,700 10,550 10,450 10,200 Net financial items, incl. ground rent -4,200 -4,200 -4,100 -4,200 -4,200 -4,200 -4,200 -4,200 -4,000 Non-controlling interests -400 -500 -500 -500 -500 -450 -450 -400 -400 Profit from property management Parent Company 6,000 6,600 6,600 6,400 6,500 6,050 5,900 5,850 5,800 Tax -1,200 -1,300 -1,300 -1,300 -1,300 -1,250 -1,200 -1,210 -1,200 Profit after tax 4,800 5,300 5,300 5,100 5,200 4,800 4,700 4,640 4,600 Profit from property management, per share, SEK 5.06 5.55 5.55 5.38 5.46 5.16 5.03 4.99 5.03 4
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A WELL-DIVERSIFIED PORTFOLIO CARRYING AMOUNT DISTRIBUTED BY REGION Total real estate portfolio, % Helsinki 24% Gothenburg 21% Stockholm 15% East 12% Copenhagen 11% North 9% South 8% CARRYING AMOUNT DISTRIBUTED BY PROPERTY CATEGORY Total real estate portfolio, % Residential 54% Office 15% Other 12% Retail 12% Industrial/Logistics 7% 5 GÖTEBORG INOM VALLGRAVEN 36:4 KOMMERSIELLT 16 493 KVM 80% Of the property portfolio located in capitals and larger cities
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LONG TRACK-RECORD OF DELIVERING VALUE 2 265 2 804 3 304 4 023 4 244 5 543 6 139 6 135 6 011 6 389 5,37 0,00 1,00 2,00 3,00 4,00 5,00 6,00 0 1 000 2 000 3 000 4 000 5 000 6 000 7 000 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Profit from property management (SEKm) Profit from property management (SEK/Share) 6
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…WHILE IMPROVING OPERATIONAL STABILITY AND REDUCING LEVERAGE Long track record of value creation through strong operational focus, as well as investments in acquisitions and new development Continuous leverage reduction and commitment to investment grade rating Strong population growth and urbanisation offer strong structural support for occupancy rates. Our diversified portfolio shows that it creates stability over cycles. 228 580 0 100 000 200 000 Portfolio value, (SEKm) 48,1% 0% 20% 40% 60% Net debt to total assets, % 95% 80% 90% Occupancy rate, % 7
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FINANCING Equity / Assets Ratio 38.5% Target > 40% Net Debt to Total Assets 48.1% Target < 50% Interest-Coverage Ratio 2.7 Target > 2.0 Net Debt to EBITDA, rolling 12 months 12.0 Target < 11.0 Fixed Credit Term 4.6 years n.a Average Fixed-Rate Period 2.7 years n.a. Available Liquidity, SEKm 23,724 n.a INTEREST FIXING STRUCTURE Year SEKm Interest, % Proportion, % 2026 43,470 3.1* 30 2027 15,715 2.0 11 2028 22,561 3.0 16 2029 16,353 2.1 11 2030 12,399 2.2 9 2031 7,261 2.2 5 2032 8,213 3.5 6 2033 5,409 4.1 4 2034 1,212 2.8 1 2035 – – – 2036- 10,714 2.9 7 Total 143,307 2.9 100 48% 45% 6%0% Unsecured bonds, 48% Secured bank loans, 45% Unsecured bank loans, 6% Commercial paper, 0% 78 691 64 616 Unsecured loans, 55% Secured loans, 45% 8 *The average interest rate for the current year includes the margin for the variable part of the debt portfolio
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FINANCING Portfolio Value (SEKm) and Net Debt to Total Assets (%) Secured debt to total assets 23.4% Approximately 80% of debt is hedged with interest swaps and fixed- rate loans 228 580 48,1% 23,4% 10% 20% 30% 40% 50% 60% 70% 80% 0 50 000 100 000 150 000 200 000 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Portfolio value (SEKm) Net debt to total assets, % Secured debt to total assets, % 9
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FINANCING 0 5 000 10 000 15 000 20 000 25 000 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036- MATURITY STRUCTURE BANK LOANS Bank loans 0 5 000 10 000 15 000 20 000 25 000 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036- MATURITY STRUCTURE BONDS AND COMMERCIAL PAPER Commercial paper Bonds Convertible bond 10
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ASSET LIABILITY MANAGEMENT Leverage & capital allocation • Continued balanced capital allocation until reaching 11 times Net Debt/EBITDA on a reported rolling 12 months basis, limited project development investments in the near term • A conversion of the convertible bond today would reduce Net Debt by SEK 5.2bn, and Net Debt/Total Assets by around 3%, with a marginal decrease of NAV/Share. Net Debt/EBITDA would decrease by around 0.5 Funding strategy • Long term bond issuer in both SEK and EUR – probably a 50/50 split bonds vs bank financing is reasonable • Already well placed in EUR bond market – benchmarks each year until 2033 (total outstanding EUR bonds of SEK 60bn, approximately 40% of interest-bearing liabilities) • Will increase presence in SEK bond market over time – establish a liquid curve out to 5 years • Will over time decrease maturity concentrations in a given quarter or year to improve the cost efficiency of our liquidity management 11
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THE SHARE 0 1 2 3 4 5 6 7 8 0 15 30 45 60 75 90 105 120 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Share price Net asset valute (NAV) Profit from property management Profit from property management SEK/share 0 4 8 12 16 20 24 28 32 0% 20% 40% 60% 80% 100% 120% 140% 160% 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Share price/Net asset value (NAV) Share price/Profit from property management Share price/Profit from property management, times Share price/Net asset value (NAV), %Share price, Net asset value (NAV) SEK/share Share price development over time Share price development in relation to NAV and Profit from property management 12
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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME SEKm 2025 January -December 2024 January -December Deviation, Δ % Rental income 13,721 12,876 7 Property costs -3,407 -3,263 Net operating income 10,314 9,613 7 Management and administrative costs -1,160 -1,080 Participation in the profits of associated companies/joint ventures 1,779 901 Other income/costs 4 -11 Net financial items -4,235 -4,079 - Of which cost of leases/ground rent -93 -103 Non-controlling interest -466 -447 Profit from property management, Parent Company 6,389 6,011 6 Changes in value Changes in value investment properties, realised 58 -4 Changes in value investment properties, unrealised 2,440 -756 Profit from development properties -17 122 Changes in value derivatives 399 -21 Changes in value total 2,880 -659 Profit before tax 9,582 4,686 Income tax -1,591 -1,045 Net profit for the period 7,991 3,640 Profit from property management per share, SEK 5.37 5.13 Profit after tax per share, SEK 6.41 2.82 13
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CONSOLIDATED STATEMENT OF FINANCIAL POSITION SEKm 2025 31 December 2024 31 December Assets Investment properties 225,196 221,261 Development properties 3,384 1,955 Lease contract; Right-of-use assets 2,287 2,585 Goodwill 136 – Other fixed assets 303 345 Participations in associated companies/joint ventures 24,164 29,281 Derivatives 459 485 Other receivables 5,004 5,570 Cash and cash equivalents and financial investments 10,509 6,444 Assets held for distribution to owners 4,850 – Total assets 276,292 267,926 Equity and liabilities Equity 106,491 101,735 Deferred tax liability 18,046 17,159 Interest-bearing liabilities 143,307 138,851 Derivatives 1,044 1,341 Lease contract 2,295 2,593 Other liabilities 5,108 6,246 Total equity and liabilities 276,292 267,926 14
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SHAREHOLDERS AS OF 31 DECEMBER 2025 Owner A shares B shares Total no shares Capital, % Votes, % Erik Selin via company 49,855,968 343,265,400 393,121,368 33.0 46.9 Arvid Svensson Invest AB 17,495,352 73,799,819 91,295,171 7.7 13.8 Swedbank Robur Fonder - 63,729,681 63,729,681 5.4 3.5 AMF Fonder & Pension - 59,569,418 59,569,418 5.0 3.3 Länsförsäkringar Fondförvaltning - 39,639,107 39,639,107 3.3 2.2 Handelsbanken Fonder - 29,963,544 29,963,544 2.5 1.7 Folksam - 19,158,229 19,158,229 1.6 1.1 SEB Investment Management - 16,855,595 16,855,595 1.4 0.9 Cliens Kapitalförvaltning - 14,802,744 14,802,744 1.2 0.8 Nordea Funds AB - 13,017,260 13,017,260 1.1 0.7 Other 25,272 444,822,611 444,847,883 37.4 24.8 Total outstanding shares 67,376,592 1,118,623,408 1,186,000,000 99.7 99.8 Shares held by Fastighets AB Balder - 4,000,000 4,000,000 0.3 0.2 Total number of registered shares 67,376,592 1,122,623,408 1,190,000,000 100 100 15
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ASSOCIATED COMPANIES Entrepreneurial capacity to build portfolio Increased owning over time Financially strong co-owners Unique competence segment or competence CAPITAL ALLOCATION Sinoma 16
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17 S SOCIAL G GOVERNANCE Climate change Water Resource use and circular economy Own employees Workers in the value chain Customers and social area development Business conduct Targets • 50% reduction in emissions from own operations by 2030 and achieve net zero emissions throughout the value chain by 2045 • Energy efficiency improvement 2% per sq.m. and year and increased volume of renewable energy production • Conduct climate risk analyses for the property portfolio • Provide customers and employees with good conditions for environment-friendly, fossil-free transport options • All newly produced properties must as a minimum fulfil Miljöbyggnad Silver or equivalent certification • Increase the proportion of environmentally certified buildings in Balder’s current property portfolio • Increase the proportion of green financing • Reduced water use 2% per sq.m. and year • Actively contribute to preserve and increase biodiversity in property management and in connection with property development • Reduce waste volumes, increase the level of sorting and strive to achieve increased reuse of materials • No incidents of discrimination or victimisation • Implement various social initiatives that contribute to the development of Balder’s five social pillars • Create jobs for young people in the property management organisation • No cases of corruption • All employees shall be trained in the company’s Code of Conduct Targets Targets E S G ENVIRONMENTAL BALDER’S SUSTAINABILITY FRAMEWORK E
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Q&A