Welcome to the Diös Interim Reports January to June 2021. Throughout the call, all participants will be in a listen-only mode, and afterwards there will be a question and answer session. Today, I'm pleased to present Knut Rost, Chief Executive Officer, and Rolf Larsson, Chief Financial Officer. Please go ahead with your meeting. Good afternoon and a warm welcome to this web presentation of Diös second quarter results for 2021. My name is Knut Rost, I am the Chief Executive Officer of Diös, and I am here today with our Chief Financial Officer, Rolf Larsson. In today's presentation, I will first give you the headlights of the quarter. Rolf will then more deeply go into the result, and I will finish by focusing on our market, how we will create more shareholder value, and the short outlook. If you have any questions, there will be a Q&A session in the end of this presentation. Listen for instructions how to ask questions. If you are listening on replay, you can always reach us if you have questions. Contact details are at the end of this presentation and of course, on our website. The second quarter is somewhat of a record in Diös history. We increased the result at all levels and reduced our financial costs. To highlight some of the key figures for the second quarter. Our property values are increased by SEK 728 million, whereof SEK 262 comes from unrealized value changes. The gain come from both a very active and strong market, our own activities, and increased values within building rights. Our ratio was 76%, which is a record for Diös. Rolf will cover the result in detail later on. The EPRA NRV was increased to SEK 84.9 per share and increased by 15% since last year. I will now hand over to Rolf, who will present the result in more detail. Rolf? Thank you. As Knut said, our result in the second quarter was very strong. Income from property management increased by 26% compared to the same quarter last year. Like for like, rental income increased by 1.9%. 0.2% is due to indexation and the rest to renegotiations and new lettings. Our total income was negatively affected by SEK 4 million, a one-off effect linked to the state's rental subsidy compared to SEK 24 million last year. This is a significant reduction and a sign of recovery among our tenants. Our net letting for the quarter amounted to SEK 1 million. This quarter was affected by an early termination totaling -SEK 7 million. Related to this early termination, we have received a compensation of SEK 30 million, which affects the total income. The operating surplus amounted to SEK 353 million, which is 18% better than last year, resulting in a surplus ratio of 76%. This is the strongest quarter ever. We have reduced our financial cost compared to last year, even though interest-bearing liabilities have increased. Better financing terms and a larger share of capital market financing have had a positive effect. Property revaluations amounted to SEK 262 million for the period, which represent 1% of the market value. I will come back to this later in this presentation. Our property portfolio is well-diversified in terms of both segment and geography. We have a clear concentration of our portfolio towards the city center in cities with good growth and the right characteristics. We have a low tenant concentration risk. Our 10 largest tenants, of which seven are tax- financed, amount for 17% of our total rental income with an average lease term of 6.1 years. 1% of our rental income comes from tax finance operations and 8% from residentials. This means that we have a low risk in our cash flow, and the average lease term for all commercial premises has increased and amounted to four years. The market value of our properties amounted to SEK 26.1 billion, an increase of SEK 1.6 billion since the turn of the year. Approximately SEK 900 million is due to acquisitions, divestments, and investments, and SEK 675 million is a result of property revaluations. The interest in investing in our cities is increasing. During the past year, we have seen several completed transactions regarding offices, housing, and community service properties. These transactions have been carried out on much lower yield levels than before. The value was positively affected by lettings and investments in primarily offices and a very active and strong market with lower yield as a result. building rights has also had a positive effect on the property portfolio. We recently sold 21,000 sq m of building rights to an average value of SEK 3,500 per square metre, a good level that we are satisfied with. On a yearly basis, we are currently investing just over SEK 1.3 billion improvements, property improvements, and new construction. All our ongoing projects are proceeding according to plan. Before we start our projects, except residentials, we always have 100% signed leases. Here you can see some examples of our major ongoing projects, both new builds and major reconstructions. More than 60% of the rental income from these projects comes from tax finance operations. We currently have around 100,000 sq m under construction with an investment volume of SEK 2.3 billion. The positive cash flow effect will mainly come over the next two years. In addition, we have more than 200,000 sq m in the existing or possible building rights in central location. Just over 60% refers to residential. We believe that we can release some new projects in the coming quarter. As you can see, our net debt to EBITDA is stable between 11x and 12 x. The ratio has increased slightly over the past years because of increased investments in new builds with negative cash flow during construction. Our loan-to-value ratio at the end of the period was 53.8%, which is far below our covenant levels. The average interest rate at the end of the period was 1.1%, which is lower compared with the turn of the year, thanks to better financing terms and a larger share of capital market financing. During the next 12 months, we will refinance 11% of our outstanding loans, corresponding to SEK 2.4 billion, commercial papers excluded. In the beginning of June, we launched our new MTN program with a limit of SEK 3.5 billion, and we have since issued our first green bond of SEK 500 million. With the current market conditions, we plan to increase our capital market financing further. Overall, we have a strong financial position. In addition to existing loans, we have liquid funds, and utilized overdraft facilities, and unutilized credit facilities available corresponding to SEK 1.4 billion. As you can see, most of our key ratios are improving. Return on equity amounted to 17.9%. ICR remains strong at 6.7 times, and EPRA NAV increased by 15% to SEK 84.9 per share. The growth in income from property management there amounted to 8% for the period. That was all from me. I will now leave the word back to Knut. Thank you, Rolf. I will now cover some points on our strong market, how we should benefit from our interesting market, and all the opportunities arising, and a brief market outlook. We covered a strong market last quarter, but worth repeating is what we now are seeing is a market-driven era of industrial investments in our region, driven by increased demand of sustainable alternatives. About EUR 100 billion is expected to be invested into battery factories, fossil-free steel production and development, and of course, production of non-fossil energy. We have the communities and access to natural resources in the region that is needed for driving the economy in the sustainable way that is required to reach the Paris Agreement. Northvolt, LKAB, and H2 Green Steel are large companies that announced major investments in our region. As the industrial companies grow, we definitely benefit from all the surrounding effects they will bring. We are already seeing clusters of engineering consulting companies establishing and increasing their presence in our cities. You might call it an industrial service sector that is now prospering, and I'm sure that we are seeing the inception of a wave of new establishment. Those consultant companies are requiring centrally located offices with high sustainable standard and good access to urban service. We are the market leader in these premises, and our offering is exactly what these businesses request. I'm sure this will lead to higher rental levels. Our market is experiencing increased competition from other real estate companies regarding tenants, properties, and employees. To remain market leaders in our 10 cities, we are developing our tenant offering, and we will continue to drive growth. I encourage competition because that makes our local teams sharpening our offering. The increased competition on the transaction market has already shown in lower property yields. From what we are experiencing, that the yield will continue to be lowered. The pandemic has fast-forwarded time maybe 10 years, and something that is obvious from last year's remote work is that people value their time. It is not sustainable to commute two hours every day. People are moving from larger cities to one of our 15-minute cities to create a more sustainable way of living. We are now seeing COVID-19 restrictions are relieved and experience a great optimism from our tenants. We see more people on the streets, more people in the offices, and more tenants willing to invest in the future. We believe that the highest rental growth will be within offices. Offices with the best location, with the highest standard, and with surrounding services that employees occupying can benefit from. We are also experiencing higher requirements from our tenants for design, functionality, and flexibility. Features from where we can raise rents. Now it's not a matter of if we will reach SEK 3,000 per square metre, it's a matter of when. We have finalized a number of transactions during the first half of 2021, as we said we would. The transactions are mainly office properties with great potentials in developed areas, including building rights. Our strategy when developing our building rights is to create the highest value for the company. The selling of the building right in Sundsvall will speed up the developments in Sundsvall, which we will benefit from. We have also seen a number of transactions in our market, now latest in Skellefteå, at new, lower yield levels. We are continuously looking for new acquisition opportunities and are involved in several leads as we speak. All our ongoing projects proceed according to plan. The hotel project in Sundsvall is finalized. The grand opening will be the 1st of September 2021. We are convinced that the hotel will contribute with higher footfall and increased attractiveness in the city center. We are also looking at new construction projects for both commercial premises and residential for our current building rights. We can hopefully release some news in the near future. To summarize, we have a unique position in a hot market with competent, driven employees. We will continue to act on our opportunities, do more good business, increase our profitability, and therefore create additional value for our shareholders. This takes us to the end of this presentation. Thank you for listening. We are now ready for questions. Thank you. If you do wish to ask a question, please press zero one on your telephone keypad now. If you wish to withdraw your question, you may do so by pressing zero two to cancel. Once again, if you wish to ask a question to the speakers, please press zero one on your telephone keypad now. There will be a brief pause while questions are being registered. Thank you. Our first question comes from the line of Albin Sandberg from Kepler Cheuvreux. Please go ahead. Your line is now open. Yes, thank you. I had two questions. The first one, if you just could elaborate a little bit on the dynamics on the occupancy of the portfolio and how you see that progressing going forward. You're talking about the vacancies? Yes, exactly. I said occupancy, so it's just the other way around. That's the same. Sorry. It's my English. We have had some termination of lease that hits the net letting, both in the first quarter and the second quarter. We are now on plus. We have very good forecasts in the future. We have a lot of negotiations going on. We see that the vacancy will go down both in the third quarter and the fourth quarter this year. It's actually looking good. Despite that the Q1 and Q2 looks a little stagnant. The Q3 and Q4 will be much better. Okay, thanks. You also highlight that you had an extraordinary income of around SEK 30 million. Was that related to one and the same lease? Yeah, it's an early termination. We lost SEK 7 million in rental income for the same tenant. The net is SEK 23 million. An early termination where we had SEK 30 million, and we lost SEK 7 million in rental income for the second quarter. Okay. The outlook to fill that space is that good? Yeah. We have negotiations going on with. Approximately the same tenant, a local one. We are close to finalizing that deal. Yes. Thanks. Some of your comments about rental growth within offices is very promising and interesting. You're talking about the top rent maybe of your portfolio. If you look across your portfolio and our lessons learned from COVID-19 and how tenants are behaving in terms of demand and so on, maybe not only for the top rent segment, what are the key lessons learned, you think, so far? We think that the second quarter in 2020 was rather rough for the business and for all of us, I think, in Sweden. We came into June, July last year, and everything was feeling good again, and then we had some drawbacks in fall, October, November. I think the lesson we learned is that we are very hopeful, and we think we were successful in the new standard for office in our cities. We see that location is even more important. This is a trend that started before the pandemic, but has, of course, fastened the need for higher standards. The location is very important. Many companies are using the office premises for branding and identity, and of course, it's expected that young people who want to go into a company want to be met by a design they can like. I think the individual need for each company will grow bigger, and I don't think we can talk about a standard for office in the future. We talk about location, we talk about identity, and we talk about individual needs. Moreover, it's very interesting that Rolf, my Chief Financial Officer, he told me the other day that we are not talking about CBD area anymore. We're talking about CUD, Central Urban District. We see that the rent level for offices is higher when you can offer both residential, but of course, urban services around the office. We can see that the rent is higher when you work in areas where we have mixed use. That's very interesting. Do you feel that tenants, are they trying to reduce space and so forth in the wake of this? I know you probably have had talk about basically the space being unchanged with maybe conference rooms and so forth being replaced by individual working seats. I'm just trying to get a feel for, let's say, what you think of your portfolio, the total demand you're seeing from office tenants now versus, let's say, Q4 2020 before this whole thing broke up. Sorry, 2019. To be very honest, we haven't seen that yet. We hear that universities are doing research on this. We can see it in media, but we haven't actually seen it in our 10 cities. The thing we see, it's the individual demand for designed and trendy office. We haven't seen that the demand is shrinking or anything, but we can see that you need more flexible spaces. I think last 10 years, we are talking about flexibility, and now I think the flexibility is here. I saw a report where all the employees in Sweden, 30% could work from home, and that's why we should reduce space by 30%. That's nonsense. I think the main thing that would happen is the most sustainable thing we can do is not to commute one to two hours each day. That's not sustainable, and I think that sort of behavior will, in a way, not disappear, and not diminish. It will shrink, and I think people who commute a lot, they will sit at home. They will sit in a coworking hub somewhere, and that's what we call flexibility. I don't think the premises space will shrink. No. We haven't seen that yet. Great. Just final question on the financing side and the comments you made, Rolf, about possibly increasing the share of capital market financing. Is that a structural way to look at the Diös financing, or is it more an opportunistic view based on how the market is looking today? Well, I think a little of both, to be honest. I think it's a structural change, where we would like to have a lot of sources for funding, both banks and the capital market. Of course, it's a matter of how the market is working, what the current market conditions are as well. I think we'll see more capital market financing in Diös in the future. Thank you. Those were my questions. Thank you. Ladies and gentlemen, once again, I remind you, if you do have a question for the speakers, please press zero one on your telephone keypad now. We currently have no further questions. I will hand back to the speakers for any further remarks. There is a couple of questions from written questions. The first one is, how would you describe the transaction market? Is it more busy or is it not here? I would say that maybe it's a little more busy than last year, because last year we had the pandemic and that was something that we had to handle then. Maybe a little more transaction going on, but not that much. It could be more. We would welcome more transactions in our market. Next question, the rental level in total is compared to Stockholm. How does that look and how is the trend on the average rental level? Well, starting with residential, for instance, is approximately the same. When we talk about urban services and offices, of course, it differs a lot. When you, in Stockholm, for instance, have a high yield on SEK 10,000 per square metre, we have about SEK 3,000 per square metre. We don't have the volatility that you have in Stockholm, for instance. Therefore, we can convert premises to another premises, for instance. When talking about urban services, talking about retail, we have had some new contracts in the last month, and we can see that the retail rent level is back on the level it was before the pandemic. It's looking really good. The thing we have to do in Diös is when we talk about renegotiation, we have to be a little more convinced and more secure in talking with our tenants. That's the difference. The last question. You say that SEK 3,000 per square metre will happen within a short period of time. Which sub-market would reach that level first? Is there some sub-market that will not reach SEK 3,000 per square metre in offices? Looking into the crystal. I think the first type of city that will reach SEK 3,000 per square metre, maybe it's not us, it could be some of our colleagues in the business. It will be in a location that's very central located, close to a travel center with urban service around it. I think it will be Luleå, Umeå or Skellefteå. That's the cities that will reach the highest level first. We are very close to it in all our cities. That was all the questions. To summarize, thank you very much all for listening, and have a great summer out there and be careful. Bye-bye. Bye.