Everyone, Welcome to Catena's Q1 report. Talking to you today. Jörgen Eriksson CFO, Sofie Bennsten. Moving over to slide number three, today's content you see in the slide. We start off with some highlights. Jörgen, you are welcome start. Thank you, Sofie. Slide four. Catena came out strong in the first quarter with a 5% increase in the rental income, and that it's included a one-off in Q1 2020 of SEK 11 million. Year to date, our profit from property management has increased by 6% year-over-year. EPRA NRV has increased by 33% to SEK 276 per share, most because of revaluations, but also because of a directed share issue. Our net leasing operations summarized to SEK 10 million. Worth to mention is that we came out this quarter with a net LTV below 50%. Our acquisition in Denmark was completed at the 1st of March and will have a full effect in our Q2 report. We are on the way with zoning plans anticipated to become final in 2021, enabling new potential projects. We feel that our business are backed by strong interest from investors, and the credit market is stable and close to levels before the pandemic. Please, slide five. As economies are starting to reopen along with ongoing vaccination programs, confidence among consumers is increasing. The impact from coronavirus has limited effect on Catena in the first quarter of 2021. The set-up program prepared for the first quarter of 2020 to cope with the situation is still in progress and of critical importance. Summarizing the first quarter of 2021, rental value of 6 million SEK was agreed to change from quarterly to monthly payments, of which they all been paid for according to the plan. Discounts linked to government rent subsidy amounted to just under 1.8 million SEK. Slide six, performance. We go over to slide seven. A history of profitable growth. The hard work Catena has put down to become the leading provider of logistics facilities in Sweden has been successful. Profit from property management has paced at 14% compounded annual growth for the last five years, and the earnings per share has paced at 41%. At the same time, the dividend has compounded annual growth at 20%. Please, slide eight. The rental income amounted to SEK 329 million in the period, and the total growth in rental income was 5% year-over-year. Project developments contributed 5.5%, and net transactions 1.8%. Like-for-like rent growth contributed 0.6%, which comprises a combination of lease reviews and renewals, as well as indexation and changes in vacancy. There was also one-off effect related to prepayments of an early lease expiry amounting to 3.3%. Moving to slide nine, and Sofie. Some other comments on the income statement. Our net operating income was 4% higher, and income from property management was 6% higher than the same period last year. The surplus ratio went down slightly to 78.5% from last year's 79.1%. One should keep in mind the effect of the positive one-off in the rental income of SEK 11 million that we had in the first quarter last year. This first quarter was affected by a harsher winter with a lot of snow in Sweden and a temporary increase of the cost for electricity. Unrealized changes in property value amounted to SEK 680 million and corresponded to 3.4% of fair value, and the value changes of its derivatives amounted to SEK 85 million. All in all, the profit for the period ended at SEK 722 million, resulting in an earning per share of SEK 19.95. Moving over to slide 10, Jörgen. As indicated by the diagram, our cash flow has been growing consistently since 2016. For Q1, we have performed another strong cash flow period where we retain 57% from revenues in property management income, where we have a target of 50%. Cash flow is a key for stability, enable us to generate investment capacity for continued focus on profitable development pipeline. Our target is to maintain a level above 50% of rental income. Our dividend objective is to distribute 50% of profit from property management net standard tax. Moving to slide 11, operational review, and slide 12, Sofie. Thank you. In our five regions, we've particularly experienced growth in the Malmö region with a 24% increase much due to the large acquisition of five properties in Denmark. The Gothenburg region grew with 19% with two acquisitions in Borås. Catena has now a total of 121 properties, of which nine of them are located in Denmark. The economic letting ratio has temporarily gone down to 94%. This is due to new vacancies in Borås, consisting of 38,000 sq m in the property Åre 92, where the e-commerce company Nelly is moving in towards the end of the year, and also in another property called Vintunnan of 15,000 sq m. The last letting process of this property is ongoing. Moving over to slide 13. Catena now has a diversified asset portfolio, both in term of geography, tenant concentration, and asset size. 46% of our contractual income is derived from our 10 biggest tenants, representing critical logistics providers with whom we hold several contracts and that is attached to a variety of our properties. The majority of our tenants, 42%, represent logistics and transport providers, and 39% represents the food distribution, an area that has grown during the pandemic and also has a booming e-commerce sector. Both sectors provide an important service to society. Moving over to slide 14, Jörgen. Thank you. Yeah, on this slide, we present part of our customers who Sofie talked about in the previous slide. Many of them are experiencing growth, and we will do our best to supply them with more spaces when needed. Some example of growth in our customer's business are that PostNord handle the same volume of parcels the day after Easter as they did on Black Friday. Boozt are expecting a growth of between 47% and 49% in the Q1 2021. It is clear signals to the market that the mega trend e-commerce is growing more and faster than we could imagine. Move to slide 15, rental market. The rental market is strong, especially in the most populated regions of Stockholm, Gothenburg, and Malmö shown on the slide, where it is a shortage of new land. In other parts where land is not an issue, the market is typically more stable. We experience significant occupier demand, specifically from parcel delivery providers, cold storage, and e-commerce retailers. Moving to slide 16, please. We have experienced the first quarter of positive net leasing of SEK 10 million. Our weighted average lease for approximately five years has been stable metrics for many years. As Sofie mentioned before, the economic letting ratio has temporarily gone down to 94% due to vacancy in Gamlestaden waiting for Nelly to move in. Move over to slide 17, balance sheet and debt management, and further on to slide 18. The EPRA NRV has grown by 16% annual since 2016, and we came out Q1 with SEK 276 per share. At the same time, the five-year average return on equity has been 17%. Move to slide 19, Sofie. Since first quarter last year, the balance has grown with 27%, amounting to SEK 23.4 billion. Equity has grown with two share issue. On March the 1st, new shares were issued to the amount of SEK 200 million associated with the acquisition of the portfolio in Denmark. The last day of March, Catena completed a directed share issue, raising proceeds of approximately SEK 1.1 billion. Both issues were given under the authorization to the board of directors by the 2020 annual general meeting. We intend to use the proceeds to continued growth through investments in property development and acquisitions. Furthermore, to maintain a stable capital structure. Moving over to slide 20. By the end of the first quarter, the property value was appraised at SEK 20.6 billion, a growth with almost SEK 2 billion and an EPRA net initial yield at 5.3%. The increase in value changes in the properties of SEK 680 million is due to the ongoing market yield compression and that project being finalized. During the first quarter, we made external valuations of 68% of the property value. Moving over to slide 21. Some words about our debt and capital structure, where our interest-bearing liabilities amounted to SEK 10.5 billion, an increase with SEK 800 million since last day of December. Our average interest rate stays at 2.3%. That is the same level as the end of December. LTV, according to the definition in our new financial target, where we from now on and onwards include cash balances into calculation, amounted to 49.7%. Equity ratio was reported at 41.1% with headroom from our new minimum target of 40%. Moving over to slide 22 on our funding structure. During the quarter, almost SEK 1.9 billion have been renegotiated, and the remaining amount with debt maturities this year will mostly be renegotiated during the third and fourth quarter. Ongoing discussions with our bank creditors are going well in both bond and commercial paper markets are stable. Funds available on balance date total SEK 1.6 billion, comprising cash of almost SEK 300 million and SEK 1.3 billion of undrawn committed bank facilities. In the beginning of April, the settlement of the directed share issue was executed and added close to SEK 1.1 billion in cash. Moving over to slide 23. In the beginning of April, we updated our financial targets. For example, the target for equity ratio was raised from 30%- 40%. Interest coverage ratio shall not be less than a multiple of two, and average debt maturity should be at least 2.5 years. Net-to-loan value ratio should not exceed 50%. Jörgen, do you have any comments on our new financial targets? Well, I think the new targets clarifies our focus on our financial stability and sustainable growth, a growth of attractive logistics properties together with our long-term customers. We move over to slide 24 for some capital deployment, and moving on to slide 25. Jörgen. Yeah. Our long-term goal is to focus the majority of our investments into development. During the first quarter, we have acquired properties for SEK 1.1 billion, whereof around SEK 700 million is in Denmark. We also invested SEK 160 million in projects in Q1. The ratio between acquisitions and development is not according to our long-term plan, rather an outcome of our zoning plan processes take longer time to win legal force than we expected. We are eager to start with projects on our land bank, shown in coming slides. Moving to slide 26. Here we show a slide of our transactions. As you can see, the major part has been concentrated in Denmark. Slide 27. Here we have a picture of our largest projects in progress, and one of them, Morgongåva, we will come back to later in the presentation. Moving to slide 28. On balance day, we hold a potential of about 5 million sq m of land, where almost 1 million sq m are consolidated and with development plans in place. Rest of the land bank is conditional on various contractual agreements such as detailed development plans having to gain legal force. The search of new land continues along with ongoing zoning plans in process. Next slide, please. Sustainability. Then we take slide 30, Sofie. During the first quarter, we particularly have been working with the implementation of TCFD. All the employees have been involved, and the results will be published on Catena's website during the spring. We've also started the work with climate declarations for new build property, which will be compulsory from 2022. To find new ways to reduce climate emissions from construction is one of the biggest challenges that the whole industry stand for. We started to get acquainted with the new EU taxonomy and what that will mean to Catena. The implementation of the taxonomy will be gradually starting in 2022 with two of the six environmental objectives, which are climate change mitigation and climate change adaptation. We will continue to inform you on our work with the taxonomy. Moving over to slide 31, and some more sustainability. We continue to monitor our energy consumption and GHG emissions are devoted to make use of new technology to enhance our efficiency. We also continue the work to give our new build properties an environmental certification, we now have eight buildings certified with Miljöbyggnad Silver and several more in progress. The environmental certifications will create possibility for green financing, we have a goal that 50% of outstanding credit volume shall be green in 2025. Moving on to slide 32 for some market insights, over to slide 33 and Jörgen. You're welcome. Thank you. Some more interesting signals from our customers that confirm our thoughts around the strong market. Online shopping grew by 40% in 2020 compared to 2019. DS Smith are seeing great demand from their e-commerce-related customers, and they will be ready to meet higher demand in the future. Apotea, the largest online pharmacy in Sweden, had a growth of 50% in 2020 compared to 2019. Next slide, 34, please. As we mentioned before, and you have all recognized, we made a larger acquisition in Denmark at the 1st of March. The portfolio consists of five properties and the largest tenants are NTG and. We see that Denmark is an interesting case in the future, and I hope that we can grow more there. Moving to slide 35. Here you see a picture of Morgongåva. A new logistics facility of approximately 38,000 sq m will be built in the Morgongåva Business Park, which is located about 40 km west of Uppsala. The 12-year lease has been signed with Babyland, which intends to conduct its e-commerce deliveries from the facility. The new logistics facility will be environmentally certified in accordance with the Miljöbyggnad Silver standard, which is strict requirements in terms of energy, the indoor environment, and choice of materials. Solar cells will be installed on the roof. The overall investment is expected to generate a net operating surplus of approximately SEK 17.8 million. Moving to slide 36. Worth mentioning once again is our share issue, which brought in approximately SEK 1.1 billion. There was a great interest from investors. We are now ready to increase the pace of growth while presenting a very strong balance sheet. Now we move on to the Q&A session. Thank you. If you do wish to ask a question, please press zero one on your telephone keypad. If you wish to withdraw your question, you may do so by pressing zero two to cancel. Our first question is from Niklas Bäcklin of DNB. Please go ahead. Hi. I got a couple of questions. First off, about the vacancy rate. You mentioned some kind of one-time effect here, can you just explain that a little further? Will we see the vacancy rate come back to 4% at the end of Q2? Yeah. We have assigned a lease contract with Nelly, as we said in the presentation here, the full effect of that contract is from the 1st of January 2022. We expect that we come back to the higher rate at the latest at this 1st of January 2022. It's, as we said, a temporary dip. Okay. Yeah. Given the recent share issue, can we expect an increase in investment volumes near term, or was the share issue mainly to bring down the LTV to your new financial targets? No. We think that we can speed up the tempo in growth, and we can see that there are some interesting cases in the market, and we are very confident with our land bank. As soon as we have the legal force on the zoning plans, I think that we can present quite many projects. It's a combination of acquisitions and development. I cannot say if it's next quarter or the coming quarters. We are very confident with the situation that we will ramp up the growth here in the coming 12 months. Okay, great. Did you evaluate any other type of funding that wouldn't dilute the cash earnings per share for common shareholders, such as issuing hybrids or D-shares instead? I won't go in some details, but of course, when we did this issue, we thought that that was the best alternative for us. Okay. Yeah. I saw in your report that the average interest rate is flat quarter-over-quarter, while the interest-bearing debt is up by 8% or so. In your cash earning, you have slightly cut your financial costs outlook. Can you just help me understand that? Is that an effect that you will use the raised equity to reduce the debt, or do you have a more bullish view on your funding margins going forward? We can see that the funding margins will coming down in the future. I think that that's the biggest reason. Okay, how large is the difference there? What do you see? I cannot say any exact figures. Time will tell, we feel confident. A couple points down, but it's an ongoing process to see over our entire portfolio. We have a lot of loans agreements this year that we are renegotiating as we go on. We're going to see a little bit change in the course of this year, and we hope we can make better options, but we can cut a few points at least. Yeah. There is potential. Yeah To discuss. Yeah, great. Regarding value change here, you picked up speed there on a rolling 12-month basis. I believe you raised your values by 10%. Do you believe you have to catch up with the market now, or is it more positive revisions to come? Well, that depends on what direction the market is going. We feel quite confident with the valuation right now, and then we'll see if the yield compression is going further down. We have to come along, so to speak. Yeah. Okay. Lastly, just a short question about expected earnings from JVs. Do you expect to have any positive contribution from JVs near-term? For the joint ventures, now we see quite flat. That it was minus in the first quarter, it was due to the winter. Over the year, we should see it quite flat, but it shouldn't be minus in the end, at least. Okay. No big exposure or anything. Thank you. That's all from me. Have a nice weekend. Yeah, you too. Thank you too. Thank you. Thank you. Our next question is from Markus Henriksson of Pareto Securities. Please go ahead. Hi, Jörgen and Sofie. A few questions from me as well. I saw in the presentation that you have a pending zoning plan in Stockholm South. I have seen that it's granted. Is that correct, that it's granted? Yeah, it's correct in one way and in another way, there is also some other permits waiting for good to go, so to speak. We are talking about questions about handling the water. A Vattendom is needed, and so on. It's not just as we are speaking, we are not very good to go, so to speak. All right. Do you have any timeframe? If you look historically or what you heard from other similar cases, how long does it usually take? I don't know. At the end of the year, I think that it could be some positive signs. It's tough to say when we're handling with the courts and so on. Yeah, nine months, plus, minus. Okay. If we look at the other zoning plans, this has been kind of the one you've been mostly eager to start up with. What other zoning plans do we have where you could start a new construction project here in 2021? We have Sunnanå, where we are waiting for the decision from the court, and we hope to have the decision before this summer. Hopefully, after the summer, somewhere in maybe October Q3, Q4, we can be good to go at Sunnanå. Okay, thank you. I have a follow-up on the occupancy rate as well. I thought you weren't quite clear there with the Nelly property, but if we look at the acquisitions you made also, I noticed that you mentioned the Åre 92 and also Hevia 3 in a Triqo property. Could you elaborate a bit on how large vacancies we have in those two properties? Or split out the 2.3 percentage points from Nelly and the acquisition. Yeah. Nelly is 38,000 sq m, and Hevia, I think it's 3,000- 4,000 sq m vacancy in the Hevia 3 property. We had a moving out in the Q1 from another property in Borlänge, Vintunnan, and that property is around 15,000 sq m. There we have good discussions ongoing, so we think that's a normal case for us. Okay. If we look at the Triqo property, what are we missing there in order to lease out that vacancy? Do you need to invest time and money there, or do you see it as an easy vacancy? I think it's a normal case, and I'm not sure about how much money we need to invest in that case. We have to come back on that one. Okay. Thank you. I also have a question regarding new construction. If we look at in the total market in Sweden, it's been around 500,000 sq m for the past five years of new construction, and now this year it's much higher, and you have a few zoning plans that are pending. If we look into 2022 and 2023, how do you view your potential to defend the market share you had in 2019 and 2020? We are still very confident that we will increase our case when we talking about the pending zoning plans. Stockholm South is a very huge area, and in Örebro, we have even bigger, and we have Landvetter in Göteborg and Sunnanå in Malmö, and it's very good positions. I think that we can present a lot of new projects if we are talking in 24 months, for sure. Thank you. Also a follow-up on financing. You expect to renegotiate around 25%. Is most of that in Q3, or is it evenly in Q3, Q4 here in the second half of the year? The most I think is in Q3 and a bit less in Q4. Okay, thank you. Those were my questions. Thank you, Markus. Thank you. Our next question is from Jan Ihrfelt of Kepler Cheuvreux. Please go ahead. Okay, thanks. I have a couple of questions also. I start with a comment in the report saying that the planned maintenance is running on a low speed, so to say. When you actually do more planned maintenance work, is that going to affect the surplus ratio to any larger extent, or is it just a comment of cautiousness? I don't think it will be a larger extent, but due to the pandemic, there have been some restrictions from our tenants that we cannot disturb them too much. We have to respect it, but it's no larger figures that will come out from the surplus in the nearest future. No, I think it's more of a cautious way to put it that we have some fluctuations during the quarters that it's always better to do maybe a mid-form maintenance during when we don't have the weather against us. It shouldn't be any big fluctuations at all. Okay. Looking at the property revaluations and if you could split that into regions, are there any regions that are stronger, so to say, when it comes to property revaluations and some regions a little bit weaker? If you could comment upon that. Yeah. I don't want to mention weaker because I think the whole market is very hot at the moment. Of course, in Stockholm there has been some properties that the compression is quite clear that it's going down a lot. Also a revaluation connected to our developments like Tostarp and Sunnanå. That's a typical example of very high increases in valuations. That makes us confident when we are looking at the new projects coming in Stockholm South and Landvetter and so on. Okay. Just a question along that line. I saw on one of your slides here that the gross initial yield in Jönköping was 9%. How come that it was so high? Yeah, it's a good question. We'll have to come back to that. I can say that spontaneously. Yeah. Great. Then a question on your LTV. It's very close to 50% and that's actually your target. How should we view future growth there? If you do acquisitions, do you need to bring in more money? How can you finance your expansion here? Because you're very close to your limit here. Yeah, we have the bank account full of cash, and of course we can do acquisitions and we can have an LTV of around 50%. That's our target. Okay. I don't see that as an issue right now. Okay. You could live with being very close to your limit, so to say, because other companies are having hurdles of 50% and they would like to be in the 45 range or so. No. Okay. It's good for us to be on the target hovering around 50%. Just a broad question on rent. Due to the very strong market that we see on the back of the e-commerce trend, when you renegotiate, could you put up rent levels somewhat? It hasn't been that historically, but do you see a new situation now for maybe some rent growth? Yeah. First, we don't have that many contracts renegotiating every year. I think that in the future, if we are in the regions of Stockholm and Malmö and Gothenburg and there is no more options for the market, there is no more land available, then of course the rents will go up, but we are not seeing it right now, like it has been in the office market in Stockholm for example. We are pretty confident that in the coming years, we have the possibility to raise the rent levels a bit in the big cities or around big cities. Okay. Due to the long contracts, it takes time before it actually hits your- It's a long contract, so it's tough to say. We don't have so many indications every year. Okay. Finally, a question maybe for Sofie. Paid tax was, I think it was SEK 15 million or SEK 16 million this quarter, even larger than paid tax for the whole 2020. Is there anything to read into that, or are you expecting the paid tax to be on pretty much the same level as in 2020? Yeah. You mean compared to last quarter or the first quarter of last year? No, I'm just looking at the cash flow statement. Well, that the cash flow statement shows that is more that we pay taxes. You have property. No, you have the property, the taxes for last year is paid during the first quarter. Yeah. Of course, with the new limitations for all D-shares to begin. Yeah. Will make that we will have a bit larger. 2020, we paid the tax for 2019, and those taxes weren't that high because these regulations haven't hit then. That's why you see a bigger part now that we pay, which is for one year back. I think this is more accurate for the level going forward that we can see. Okay Than the historical figure. Yeah. Okay. Thanks very much for taking my questions. Thank you. Thank you, Jan. Thank you. Our next question is from Victor Krüeger of ABG. Please go ahead. Thank you. Just the first question on your reported NRV per share. Is it based on the roughly 38.2 million shares or on 41.2? On the 41.2. Okay. Just because for the rate, if I use that, I come up to a year-on-year change more around 46%, 45%. I think you guys reported 33%. That is if you adjust from last year, obviously. So that you put the same number of shares for Q1 2020 as well. Yeah. I think we need to calculate the average, and since the larger number came on the last of March. I think that's why we don't get that difference. Okay. Right. Thanks. You talked a bit about the maintenance costs earlier and being somewhat cautious. Something I noted was that you say some costs will or have been postponed due to COVID-19. In what range would you say that those costs are? Is it 10% of the maintenance cost you had this quarter or ballpark figures? It's always difficult to talk about what is to come. We can't really see that yet. I think we will have a difficulty to put a figure on it. Okay. You cannot really see if it looks to be a large cost item or if it seems to be. We cannot see that it will be a large figure in the coming quarters. No. Okay. Perfect. Just to clarify with Sunnanå, another one. Yeah. The new property there, because you finalized one last year, right? Exactly. Maybe you have both stated in the report for Q1, maybe even in the year report. Yeah. They are two different property names, right? Yeah. They are. We are now waiting for the zoning plan to be approved on another 110,000 sq m. Right. Okay. Exciting. Just the last one here, let's see. When it comes to on page 10, you can see your project portfolio, and you state that total remaining investments amount to SEK 599 million. I assume that is also stated that is both for projects and for investment in existing portfolio. Is this for an indefinite timeline, or is this for the rest of 2021, or what time period is that set? That's what we have in the books right now. It's also going forward that it's been decided and started on. Okay. It's going to be ready during 2021 or can also drift into 2022. That is what's decided and ongoing. Yeah. It's not common that a project is longer than 12 months. I think that Mörgongåva is the one that will be finalized in the beginning of 2022. I think no projects that we have here is finalized after that one. Yeah. Okay. Just quick on Mörgongåva, is that Apotea's facility next to it? Is that also yours or is that somebody else? Apotea is ours, and this new project with the Babyland is our project. Right. Is that near Solrön 116? Apotea. Yeah, exactly. Okay. That's all for me. Thank you for taking my question. Thank you. Thank you. Thank you. Just as a reminder, if you wish to ask a question, please press zero one on your telephone keypad. There'll be a brief pause while any further questions are being registered. There are no further questions at this time. I'll hand back over to our speakers. Okay. Thank you all for listening in today, and we would like to wish you all a wonderful day and a nice weekend. Yes. Goodbye from Helsingborg.