Hi, and welcome. Today, you will take part in a presentation on the public bid on Kungsleden. In end of this hearing, there will be time for a Q&A session, and there will also be participating our CFO, Ulrika Danielsson, and our Head of Sustainability, Filip Elland. You will ask your questions by writing them in the chat here below. Now, I will hand over to our Chairman, Rutger Arnhult. Please, Rutger, go ahead. Thank you. Well, thank you for joining in, I will give you a presentation of the bid, Castellum bid on Kungsleden. I'll give you a glance of how Castellum looks today. Also how Kungsleden looks today, what the merged company will look like, what our ambitions are. My name is Rutger Arnhult. I became the Chairman of the Board in end of March this year. I have been a long-term owner in the company. Before I came to the Board, I have worked in the real estate sector for more than 30 years now. Quite a long history in the sector. The deal I need to use my glasses, otherwise I can't see my notes. In October, in October 1st, today, we have started the acceptance period. It started this spring by taking contact with Kungsleden. After we tried to do the Entra deal, we looked around, we have been watching Kungsleden for a long time, we announced a bid this summer. The structure is 70% paid by shares and 30% paid by cash. Could I have notes in front of me here, maybe? Just a second. The bid, the value of the Sorry, I can't. Can I move it a little bit closer? Sorry. Here we go. Too weak glasses. Sorry. Sorry. The bid consists of a cash bid and a share bid, the price on the bid level was SEK 124.990, which amounts to a total bid of SEK 26.9 billion. The offer. Sorry. It's hard when I can't see it. Sorry. It's too small. I do like this. Can you change the picture so that I can see here? Okay. The offer represents approximately 20% premium on the NAV in Kungsleden, and it's about 7.5 premium on the share price at the time of the bid. We got the recommendation from the board of directors in Kungsleden that unanimously recommended the Kungsleden shareholders to accept the offers. We also got this supported by a fairness opinion from Svenska Handelsbanken. To get the deal most likely to go through, we managed to get Gösta Welandson, Ilija Batljan, and Olle Florén, that together approximately owns 26% of the outstanding capital and votes in the company to irrevocably undertake to accept the offer. We also have had an extraordinary general meeting held the August 27th, in Castellum, where we got the allowance from the shareholders in Castellum to go through with the bid. On the 10th of September, we got the clearance from the competition authority in Sweden to go through with the bid also. Castellum has, after the announcement, acquired 21.3% of the shares in Kungsleden, and that corresponds to 9.9% of the outstanding shares and votes. The offer, it's not subject to any financial conditions. It's totally and fully financed by Castellum's available funds. The value creation, we are looking forward to unlock shareholder value through the scale, best practice, and a combined focus on growth markets, where we will create the largest listed commercial property company in the Nordic region with a strong balance sheet, and we will maintain the strong Moody's rating that will enable us to get attractive financing terms and enhance the competitiveness. In total, we assume that the annual synergies will be about SEK 285 million. The commitment from Castellum's board continue to retain the financial policy approached and embedded in Castellum and Kungsleden. Following the completion of the offer, the board of director in Castellum will offer Biljana Pehrsson and Ylva Sarby Westman the same positions in Castellum as they hold in Kungsleden today, as the CEO and as the CFO in the company. It's an attractive offer. It's a Premium on the NAV of about, depending on what kind of metrics you use, but it's about 20% premium. It's also a premium of 7.5% of the last price paid for the share. The combined portfolio of Castellum's SEK 122 billion and Kungsleden's approximately SEK 43 billion, will together end up with a portfolio of SEK 165 billion in the combined company. In that figure, we include the indirect part of the ownership in Entra, which is about SEK 19 billion. In total, it will be 5.8 million sq m, and it will enable us to do a lot of synergies due to the big scale. It will be the Nordic number one, the largest Nordic number one listed company. We do have an attractive financial and dividend policy. We will never have an LTV above 50%. Today, it's 38. Due to our ambition to withhold our nice and strong rating of Baa2 from Moody's, we will not come near to the 50 in reality if we would like to maintain that. Also, we have an ambition to never exceed 2.0 in times in interest cover and ratio, ICR. Today it is 5.3, so it's very strong. Our ambition is also to grow annually our income from property management by 10% yearly. That's not a very ambitious goal, but we have the possibility to reach it as far as we analyze the situation. We also have an ambition to distribute 50% of our income from property management to our shareholders as a dividend. We have a long, strong history of distribute dividend to our shareholders. Actually, the longest among the listed companies in Sweden. The combined company will unlock possibilities to take advantage of economies of scale, best practice, and will be continued focus on growth markets. We will maintain a strong balance sheet. That's one of our more competitive parts. We also focus on the ESG and the sustainability. It's very important going forward. We are one of the companies included in the Dow Jones Sustainability Indices. one of, I think, six Nordic companies, six or seven. We also have been ranked number one by GRESB for several years. I think it's now five years in a row, actually. As I mentioned, the synergies, SEK 285 million annually, SEK 185 million comes from operational synergies, about SEK 100 million comes from financial synergies. This is the indicative time plan. We are now at the October 1st. The acceptance period started yesterday. Next in line here is our interim report, the Q3 from us, from Kungsleden. That's the October 19th. The acceptance period ends at the October 29th. We will get the final result at the November 1st. We expect to start the settlement at the November 4th. That's our time plan. Looking at Castellum, it's a big company. We have 440 employees. It's about 3.8 million sq m. It's 558 properties. 26% of the income comes from governmental and authorities. The volume at half the year, second quarter, was SEK 97 billion, as you can see here. Since then, we have bought some. I'll show that in a picture later. We do have a Baa2 rating from Moody's. What's happened this year? We have bought 9.9% in Kungsleden over the stock market. We have also bought 31% of Entra. We didn't go through. We didn't manage to buy the whole of Entra, but we have at least managed to buy 31% without any dilution in Castellum, which we consider is a very good position in the Nordic market through Entra. It also ticks in the box on our ambition to be a Nordic-focused company. We have also expanded in Finland. We bought a portfolio of SEK 6.5 billion around Helsinki called the Kielo portfolio. Directly after, we sold off SEK 2.1 billion out of that properties we didn't really thought fit into our existing portfolio. We also acquired two office buildings in Stockholm and sold one in Copenhagen. One in Copenhagen that will be fully vacant, we bought one in Stockholm for the same amount of money that's fully let, actually. A good switch there in our view. We sold off in two transactions, SEK 10 billion of properties of logistics to Blackstone during the spring. That's what we have done so far this year, some acquisitions and some sell-offs. Quite big volumes, we have really, really focused the portfolio to the markets we would like to be in. Kungsleden as a glance, approximately 133 employees. It's approximately two million sq m, has 207 properties valued at SEK 43 billion. 90% of the portfolio actually has an overlap on the Castellum portfolio. It's hard to find something that fits even better, together with Castellum. Approximately 18% is governmental and in authorities. It's a high quality portfolio, mainly focused on Stockholm, and it actually increases the Castellum portion in Stockholm. I'll show that later on in the table. Some pictures, some examples from Stockholm, Gothenburg, and Västerås, and shows some of the properties. This is, you can see, commercial focus. It's office, but also a small portion of logistics, fits as well. It's rational. It will strengthen Castellum as the leading commercial property company in the Nordics. We have a leading position, and we further strengthen it, and since the portfolios are matching so well. The combined experience will also, in my view, create a very, very strong team. We'll get the strongest and most forceful team in the Nordics. We'll also become stronger on the development side. The combined development portfolio will be amazing, and even bigger than we have today in Castellum. We add on interesting things into our existing portfolio. As you know, we have a very strong property development department within Castellum. It gives us a very diversified base of tenants, in different sectors, and that really gives us a stable base for continued strong and stable cash flows. We also have a joint agenda on being the Europe's most sustainable company, or one of the most sustainable. Why not the most sustainable? This becomes more and more important each day, I think going forward with more climate crisis and so on, it will just be more and more focus on this. Try to be on top, try to be in front of sustainability so that we turn over a very clean and nice company to our kids in the future. There is a significant value creation through synergies in the deal. The SEK 285 million we saved can be transferred into the deal calculation, and you can figure out what kind of value creation we can make from that. That's very interesting. We have an attractive financial policy. We will make sure that we keep our ratings and keep our ability to borrow at very, very attractive levels on the Eurobond market and from the Nordic banks, of course, and international banks. We do get a very, very nice team, a strong team of experienced management that we now hopefully at the beginning of November can start to form so that we get the best team to execute on our strategy going forward. The combined company, it's interesting to see, this picture shows the largest commercial property company in the Nordics. Castellum is the largest with SEK 97 billion, and Kungsleden is one of the largest ones, also with SEK 43 billion. The combined company, SEK 140 billion, and then adding on the acquisitions we have made and a proportion of the Entra portfolio. Indirectly, since we own 31% of Entra, we look upon it as we have a position in Norway of SEK 19 billion. We also will account it as a company of interest, so you will see what kind of income that part of our investment gives us in the Castellum figure. That's really good. Improves our ICR and profit per share, of course. Combined, it's SEK 165 billion, so we are more than double the size of our second-largest competitor in this table here. This picture shows how we complement each other. The green dots that shows the overlapping cities, and as you can see, it's more or less only in Gävle Kungsleden doesn't own any properties. Otherwise, we have a overlap in each city. This picture also shows that the Stockholm market increases. You can see the light blue part of the Stockholm line really increases. Actually, in value, Stockholm is becoming larger than Gothenburg, but in square meter, Gothenburg still is the leader. They can compete together in the future about who's the largest, and then the Gothenburg team can always go for the square meters, and the Stockholm team would probably focus on market value. It's 90% overlap, and this really will strengthen our customer offering in each and every market. Showing this picture also, we can see that we will probably most likely sell off a few buildings at the bottom list here to make sure that we are focused and also to make sure that we keep our low LTV and an attractive LTV level in the company going forward. This is an example of how we fit together in Stockholm. You can see that we add in a portfolio that really strengthens our position in Stockholm with a handful of really nice real estate assets coming in from Kungsleden. We get a much better combined portfolio in Stockholm. Now we are in the most interesting markets and areas in Stockholm with a significant amount of sq m. Our offer to our tenants will be really much better. This shows that we are focused in strong regions. The left, the scale here, it's population growth, right is growth in income. You can see that the major cities in Sweden, Stockholm, Gothenburg, and Malmo, are all on top based upon income growth. You can see that we are well above average with more or less the whole portfolio, 90% of the portfolio is above the average, which is very strong. This is only because the company has been working hard on focus on strong growth areas for many years. The same situation has been in Kungsleden. That's why the portfolio is like it is today. They have sold off regions with less growth. The combined portfolio, as you can see, Castellum and Kungsleden has a large portion of office, a neat portion of industrial and warehouse also. The combined company will have 14% warehouse, but 58% office and only 6% retail. I think 6% retail is something you should have in an office company. Retail is not so favorable these days, but you need some of the retail to have an attractive offer to your tenants, because the tenants are using the shops and coffee shops and services provided by the retail sector. That's important. You can't have zero, and then you have misunderstood how it works. We have a lot of development and land. Going forward, we'll have a very strong pipeline of more than 20 big projects going on in the combined company. The Stockholm part here in this picture shows that it's 34% of the value in the company, of the SEK 140 billion of value. Finland is slightly stronger now after the last acquisition. Doesn't show in this picture, but that's because it happened after. We have a slightly stronger position in Finland, but the else is more or less the same. To show you some of the projects, we have 17 projects going on in Castellum, there is six major projects going on in Kungsleden. The combined project portfolio is nearly coming up to SEK 10 billion, SEK 7.4 in Castellum and SEK 1.4 in Kungsleden. It's a really nice portfolio. Also, as you can see in the project portfolio coming from Castellum, it's a large proportion of governmental. The two largest ones in Malmö, more or less, you can see E.ON is public or governmental, or more or less. Godsfirman, of course it is. Tenant base, it's amazing. Many tenants from so many different sectors. This shows top 10 tenants in Kungsleden. There is no single tenant that stands for more than 4% of the combined rental value. The combined company, the income has been stable and growing in both companies for many years and will continue. Lower to the right here, you can see the dividend from Castellum over the years. Amazing. This is something that's really key for us to maintain this continuous growth in dividend year after year, where we are the leading company in that respect, and we will continue that, to try to continue to keep that position going forward. Sustainability, it's key for us. We have Filip on board who can ask specific questions afterwards, but this is key, and I think it will be more and more focus on this going forward from everybody. It's been focused within the company for many years. As you know, in the real estate sector, cost side is electricity, it's heating, it's water, maintenance. If you are a little bit more structured and you focus on this, you can save a lot of money, and that has been the case in the sector for many years. Now it's focused from everybody on what we're doing and what we can do going forward. We will, of course, try to become a zero company as well as some others. That's the focus, to turn over a very clean company going forward. Every new construction is always certified. Otherwise, we don't start them. Everything new will be certified going forward, of course. Synergies, SEK 185 million from operational. Big company, big possibilities to be efficient, get better deals with everybody, and so on. Also on financials, becoming a more attractive company. Keep the ratings and the volume will be attractive. I look forward to see the next time we do something on the market, if we can even get better margins than last time. Of course, there are also synergies in the market position, the offering will become stronger. It's hard to calculate on how much that is. We're also losing one of our biggest competitors. We get rid of one competitor, so that's important. The offer will become better. The combined companies, SEK 85 billion in asset value, net asset value. You have it down at the bottom right here. 765 buildings. It's a big company. Rental value of almost SEK 9 billion, and lettable area of 5.8 million sq m. It's a huge company. It's a company that every delivering firm, every seller of ours, try to sell us stuff, would like to have us as a customer. We will use that volume to get the best deals in the market and become the strongest company. Growth target, I mentioned before, we have a target of grow by 10% annually. It's a tough task to grow the income by 10% yearly. We have been focused for many years. We have succeeded. This deal with Kungsleden will help us to succeed. It will increase our figures for next coming years. We'll never exceed the LTV of 550, it's 38 today, as mentioned. Never below 2.0 in interest covering ratio. It's 5.3 today. It will remain just below five in the combined company. We'll continue to distribute 50% of the income to the shareholders as a dividend going forward, 4.7 to be exactly. The LTV post combination is 42%, I should mention that as well. The timeline is here. We have gone through it, so I skip through that. Pictures on me. Good one, I would say. Biljana, magnificent. Ylva, fantastic. I'm not in the team, I'm just the chairman. Ylva and Biljana will form the team, the strong Nordic team together, with the team from Kungsleden and with the team from Castellum. We will welcome them in, and welcome all of Kungsleden in, and then we start working together, becoming the best and strongest company in the Nordics. Do I have any more pictures? This is just repeating. We go to the Q&A session, if we have any questions. I hope so. Yes, there are a lot questions coming in. Thank you so much, Rutger, for going through the presentation. Thank you. I will start reading some questions that we had got in our chat. The first one looks like this. "Do you see any risk of the acquisition not going through? And what happens if Castellum fails to obtain 90%? Well, you never know. Our ambition is, of course, to reach 90% and then it just goes through. If we don't reach 90%, we'll probably most likely prolong the acceptance period as a first step, and then we see what happens after that. That's up to the board to decide, if we would like to go through with the deal if we don't receive 90%. We don't have an answer on that. We have to wait and see. All right. We are already an owner also. We have 9.9%, anyway, we'll be an owner, a part-owner at least of Kungsleden. Yes. The next question, What is Castellum's view on Kungsleden's current book asset values? Does Castellum consider the book values fair, or do you see the value upside potential near term due to yield compression? The book values in Kungsleden is based on a asset to asset valuation, it's not made by Kungsleden itself, it's made by external valuators. They are cautious and precautious. They do it house by house, property by property. Today you have a premium on portfolios. If you can buy four buildings in an area, like what Kungsleden call cluster, they're using that word a lot, cluster, that's because they have a lot of clusters. A group of properties in one area, a cluster. That cluster is actually, as a group, worth a little bit more. That creates, in today's market, a small premium. What I see, I think a portfolio like Kungsleden is worth a premium, we pay 7%-8% premium if you back the bid down to the property portfolio. I think that's not too much to get the volume because if you buy piece and piece, then you will probably have to pay a lot more. I think if you have the possibility to buy a portfolio of SEK 40 billion-SEK 50 billion like this is, then you have an advantage to make there, so you can get this portfolio. Then also with the synergies we get, we create, we can always pay a little premium because the synergies create value. There is room for a small premium if there wasn't in the valuations. We just assume that it looks like. Then we do our own estimate, and it looks like the values are fair, and we trust the external valuation firms, so that they have done their job. This is something you do frequently. Yep. It's not a once in a while job. You do it frequently. Good. Next question. What is the plan with Entra? The plan was to buy the whole of Entra, so that we would have a position in Norway of SEK 60 billion. Now it's SEK 19 billion, and it's not too bad. We have 31%, and another friend of ours, a competitor of ours, has 32% or something. Together, if we can just speak to each other and be helpful to Entra, we can support the company going forward, and that's the way we go for now. Long term, I don't know. Now, since we are two major owners, it's hard to do something else. We're happy about our position, and it gives us, indirectly, SEK 19 billion. It will soon be SEK 20 billion. They grow all the time. That's a nice position in Norway. It's not SEK 60 billion, but it's SEK 20 billion, and it's better than SEK 0. It's hard also to buy piece by piece in the Norwegian market. That would be very tough to buy SEK 20 billion in Norway. Another thing I like with the position is that if we can just support and stand behind the management team through the board in Entra so that they make the best, we get the economies of scale in that market also, because the synergies between properties in Norway and Sweden, if we buy SEK 20 billion in Norway, they are not big financial-wise. They are, but not in daily management. In this portfolio, you have SEK 60 billion, so you have the economies of scale, so that's good. It's actually really good. Now we can instead focus on trying to get a larger portfolio in Denmark and Finland. We're quite small in Copenhagen, we're quite small in Helsinki. It's SEK 5 billion, SEK 5.5 billion, and SEK 7 billion, SEK 7.5 billion in Helsinki. I would like to enlarge this portfolio so we get a stronger position there. That's our focus now. Now we can forget Norway for a while. We don't need to go there and see on single assets. Yeah. If we get prospectuses, we can send them to Entra. Easy ownership. All right. There's a lot of questions in the chat, so I will push it a little quicker. One thing more about Entra. Yeah. We can buy more shares, we can only buy a few more, because now we're 31, we can't go above one third, 33.33%. Then we have to bid for the company. That's the rules in Norway. Some investors thought when we passed 30 that we needed to bid, that was a misunderstanding because the rules in Norway are slightly different. 33.3, that's the maximum. We're almost there. We will stay before that. Yeah. Yes. We will not pass that limit. All right. I have another question. Will you leave the Kungsleden debt outstanding, or will you refinance the debt? No, we will, over the coming years, refinance. That's how we can create the financial synergies. We borrow slightly cheaper, so in that way, we can save more, save SEK 100 million or maybe more, but SEK 100 million. Yes. Yeah. Are you looking to raise even more hybrid capital after the combination? That's nothing on our agenda, but the hybrids are attractive. You get equity at attractive levels. If that market continue to be in the same situation it is today, that's not unlikely. Today we did issue the amount we needed to strengthen our balance sheet. We don't need to use the hybrid anymore today. You never know if Kungsleden is probably not the last acquisition we make. I think you will see in the Nordic market a lot of M&A activity, and we will, of course, in the future try to be involved. Now we have to focus on Kungsleden, but further down the line, and in a situation similar to this one, we will most likely, if it's a similar situation, use hybrids. Another a little bit longer question. Assuming the Kungsleden bid is successful, will Castellum remain active as a consolidator on the Nordic commercial space, or would you be more focused on the organic growth potential, including development projects post the Kungsleden deal? If you want to continue to grow via larger M&A deals, what are other segments or geographicals? What would you look for? Interesting. We always try to grow organically. Growth with projects is the best way to grow. We get the best yield. Adding on single assets nearby our strengthen our local positions is also always interesting. They don't come up so often. When they do, we'll try to use the opportunities, and then it's always a matter of price. If the price is right or if it's not. If it's not, we don't buy. Depends. Sometimes we have an advantage of being large, and sometimes we have an advantage of being big in an area, so we are maybe the only one interested in a particular property. We'll see. M&A, as I mentioned, if there are opportunities, we will calculate and figure and see if it's attractive. It should always be attractive for the shareholders, value creating and profit creating in every way. Okay. Should you say that is a trend in the business overall? Looking for acquisitions, yeah, it is. Going back the last years now, it's been a trend, definitely. Going forward, I think most of our competitors will become larger and larger by acquisitions and M&As. Going outside the Nordic, was that also a question? Yeah. It's not on the agenda. We have so much more to do in the Nordics. As I mentioned, we have only SEK 5 billion in Copenhagen. That's a very small position. We'd love to grow there. Lovely city. Same thing in Helsinki, SEK seven and a half billion. We'd love to grow in Helsinki. The deals must be right. There is always a lot of house, not always a lot of properties for sale, they are always expensive. You have to find the situations where you can live with the expensive price, you can see an upside. Yeah. That's what we're always looking for. All right. What is your view on the future of office and distance working? Will it affect the market? Absolutely. Post-corona, I think. Yeah, absolutely. It has already, and we did work a lot from home even before. I think on average, people work one day a week, and now we're probably 1.5 or maybe two. You will still need an office. People go crazy, in my view, by working from home all the time. The flexibility will be key for people or companies who would like to attract the best teams, to give them the possibility to be flexible. To sum up your business and to meet up in the office, I think is so key. You don't need to meet up five days a week, but you need to meet frequently to experience ideas and to discuss and come up with deals. Yeah. If you don't meet people, you don't come up with the greatest ideas, and you will not create a new huge company from the kitchen table. I don't think so. No. You need colleagues, and you need to sit and discuss. Have you seen any effects on the rental levels or the vacancy rates or stuff like that? No, we've seen some vacancies coming up because companies have been worried about where we're going, and when leases terminate, then they wait, some smaller companies. We have also seen the opposite, companies needing more space because they need to bring in everybody a few days a week, and they also need more space, and they're not fit for that. Normally, they're not everybody in the space at one time. Now when people are more, "I'm coming in on Tuesday," then everybody might come in. You become more flexible, and then you can't regulate that. "Oh, you can't come in on Tuesday. It's only him or her." You need space for everybody. You need to meet everybody some times a week, and then you need space, and you need more space, and you also have more creative space. That's a trend we have seen for many years. Yeah. It's like you create your own co-working space within your company, within your space. That's what we have seen for many years. What do you think about the demand for office spaces in, for example, Stockholm, Gothenburg, Malmö? Is that- That's a growing demand. Well, it's a growing economy, and it's a growing demand. I think we will also see some negative things about people working from home, depression, alcohol. I've heard a lot of problems with people who had the possibility to drink several times a week now in the midweek, and having problem coming back to the office. We will note that there has been some negative, and depression, we have heard a lot of. You need to get out of the house, get to the office, meet your colleagues, which is often your friends. Yeah. Conclusion, the office space is still needed. Definitely. We have a strong economy. We have a lot of new companies coming out all the time. There's a super trend in Sweden and in the Nordics of new companies coming out, and they need new space, and they got the capital to rent and so on. There's a huge and strong demand also. Okay. We do have a positive letting, don't forget that. Yeah. Our actual fact figures are positive. Very good. A totally different question. Might issuing D shares be a way of ensuring a high rating after the combination? D shares in Castellum should be a very attractive offer to the market. What do you think about that? To the market, but not for Castellum. It's too expensive. Since we can borrow at so attractive levels, I can't argue that we should issue D shares. Okay. D shares are traded at 6.5% yield. We can use hybrids. That makes much more sense. To a certain extent. There is limitation with hybrids. The rating authorities, Moody's and S&P and Fitch and Scope and so on, they don't allow you to have endlessly a portion of hybrids. There are certain limitations. Within those, we'd rather work with hybrids or something else. It's too expensive for a company like Castellum. Yep. Will this transaction change Castellum's strategy in any way? Not really. Not really. Maybe we'll focus a little bit more on Helsinki and Copenhagen now, because we've become so big in Sweden. We can always become larger. We are really small in Helsinki and Copenhagen. Kungsleden only has properties in Sweden, so that's where we grow by this deal. Yep. Good. Otherwise, financial targets, dividend targets, Nordic focus, everything stays put. Good. Under what circumstances would a merger between Castellum and Corem make sense? They're quite similar. Makes sense, but now we're focused on the Kungsleden deal. It's a huge deal for us. Lots of people now need to work together. We're going to create this joint team. Going forward, never know. If it makes sense, why not? If it doesn't, then we shouldn't. If it's value creating, we shouldn't miss a deal. Doesn't matter what company it is. We are open for discussion, but it's for the best of Castellum's shareholders always. Yep. Okay. Thank you for this presentation. Here is my question. There are currently lots of worries about inflation. How do you see this threat affecting the commercial property sector and the profit margins of Castellum? I think we need inflation. That's not a bad thing. We don't need these super low interest rates either. We can do very well with slightly higher interest rates. They will increase if we get inflation, of course, but we haven't had any inflation, more or less, but now we see some signs of it. I think stable inflation, 2%, 3%, that's healthy. We can live with slightly higher. We have an ICR of more than five, and after the 4.7, so we are super strong. With inflation, we get better value creation on our portfolio. It makes, actually, lives easier. The value just come by itself, if you inflate the rental levels. Sometimes you say inflation is the real estate owner's best friend, because their loans just disappear over the years. Yeah. Just go to your parents. If they bought a house back in the days, borrowed, they thought it was a lot of loan, the loan is gone. Not through amortization necessarily, but through inflation. Okay. One of the last questions, will Biljana Pehrsson join Castellum even if the deal falls through? If not, what is the backup solution for the CEO position? If the deal doesn't go through, I'm sure she's loyal to Kungsleden. I'm sure. The deal will go through. If not, if not, we start a recruitment process in the spring. We just need to restart that, and employ a new CEO, and also a new CFO in that case. I don't see that happen. All right. There is still some minutes left for new questions to be written in the chat below. Don't forget, we have also the opportunity to ask questions for our CFO, Ulrika Danielsson and Filip Elland. Also think about the CEO, we do now have announced that we have a new CEO coming in, and if this deal stretches out, takes longer than we thought, then we do have a team on board. We look forward to get Ylva and Biljana of course. They've made a really, really good job in Kungsleden. Cleaned up and structured the company. It was a little bit of a mess a few years ago, in my view. Now it's structured nice. Good portfolio, good projects. Super control, cleaned up the financials, cleaned up the debt position. We had some questions about the quality in the portfolio before. Yeah. Can you say something about the quality? I think there is a misunderstanding. Kungsleden has sold off a lot of less attractive assets over the years, and they have also refurbished a lot of assets over the years. Several of them are assets we were trying to buy ourselves, been competing with them, and they also added on a lot of nice buildings. In some cases, they have really the top-notch buildings. It adds Castellum a portfolio. Of course, Castellum also has a few properties that we don't show them on pictures every day, but they're interesting because strong cash flows, but they don't look the best. They might be super interesting in the future with the new developments and so on. That's why we're keeping them. Otherwise, we would have sold them because the transaction market is super strong. If we want to get something sold, that's the easiest job today. Everything we own, we own it because we want to own it, want to keep it, because it's so easy to sell today. That's the same situation with Kungsleden. They of course compare sell it or keep it. The reason they kept the properties they have is because they like the cash flows, and they see the possibilities in them. We will sell off, as we mentioned before, a tail of properties that doesn't really fit into the joint company. We are working now on a sales process, and we just announced one sell-off this other day. We're working on it. Yep. So This looks like a good final question. Where will Castellum be in five years from now? It will be slightly larger if we manage to achieve the goal we have a 10% annual growth, in five years, we will be more than 50% larger. SEK 265 billion growing by 50%, we'll be kind of a large company. Mm-hmm. That's the way most every company will be. It's a scary figure almost. It's huge. It's also a super stable company with so many tenants. If something should be larger, it's really commercial real estate companies or real estate companies in general, the larger you are, the most stable you are. You are into each and every sector. If there is one little sector that are doing bad, it will be replaced by something that do better. It's the same type that the product portfolio in each and every company changes over the time, is also your tenant portfolio changes over the time. If we have Tesla today, there's so many brands going away. Yeah new brands coming in, new companies coming up, companies disappearing. Yeah. For us, it's just a new tenant. Can you say something about logistic going forward in a longer term? Yeah. Now we have about 15% logistics. We do have a lot of land, so we can build a lot. We have a huge land bank. If we can find tenants, we can build a lot, several hundreds of thousands of square meters of logistics. It's a really strong sector at the moment. We will of course try to use and work in that market as long as it is that strong. Will it stay strong for a longer time, do you think? Logistics will, it's here. Last mile, huge boxes, small boxes, last mile delivery, just in time. More and more, if you order something in the morning, you want it before the evening. Logistics in each and every city and market is becoming key, and you need hubs, big warehouses and smaller hubs. I don't see that trend coming to an end. rather accelerating more and more solutions. More and more delivery, pickup, and cars and mopeds and bicycles and people are lazy, and if they get it to the door, they want it to the door. The demand for a good logistics won't disappear? No. Good. Okay. Sometimes, soon you will have Like now you have pizza delivery. Tomorrow you will have like a cappuccino delivery, because it's too hard to go down to the cappuccino place. We'll see where this ends. We deliver the cappuccinos within the offices. Of course. If you go to the office, you get a cappuccino. Of course. Yeah. Okay. That was all questions that we had for today. I will thank you, to everyone listening in. Thank you. It was a nervous start, because I lost my glasses, and I took a pair that didn't work at all. I couldn't see a thing. Now we managed. I saw some, just did most of it from head. I think most of our listener also can read. You will find this presentation afterwards at castellum.se, both the presentation and this video. Please visit our website. I would say thank you to everyone that's listening, and thank you to Rutger. Thank you all. You can always text a message. I'm lousy on, I don't answer phone all the time, but I answer text messages, so send them in. Perfect. Thank you.