Slides
Page 1
Year - end report 2025 Q4 2025
Page 2
• Bank and bond margins continue to decline • Average cost of debt is lower than the marginal cost of debt • Average interest rate at end of 4Q25 was 3.9% vs 4.3% at 4Q24 Strong growth in IFPM Summary October - December 2025 • Economic occupancy was 90% at the end of 4Q25 vs 91% at 4Q24 – transactions have, and will affect, occupancy • Income amounted to SEK 669m 4Q25 compared to SEK 632 4Q24 – driven by transactions and completed projects • Surplus ratio was 67% 4Q25 vs 67% at 4Q24 • Growth in Income from property management was 16% QoQ and 10% YoY • Valuation yields, Like-for-Like, decrease by 4 bps QoQ, standing at 6.10% in 4Q25 • Unrealized value changes of SEK 120m, mainly due to strong new lettings • Divestment of Åre portfolio by Dec 1st, SEK 660m • Transactions at book value confirm property values Operational development Net financials and refinancing Property values Our outlook 1 2 3 4 Intro Operation Portfolio OutlookFinancing 22026-02-13 │Q4 2025 Earnings call • New financial targets for long term profitable growth • Increased vacancies are set to be reversed. Increased activity in both rental and transaction market • The long-term outlook for the green transition is robust and military investment will contribute to infrastructure and new jobs. The growth rate continues to accelerate. • Diös is well positioned to capture long-term accretive growth
Page 3
3 Vacancies at historical average, thus divestment of occupied properties Intro Operation Portfolio OutlookFinancing 2026-02-13 │Q4 2025 Earnings call Property value and valuation yield Occupancy rate 88% 90% 91% 91% 90% 89% 89% 91% 93% 92% 90% 0% 25% 50% 75% 100% 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 0 5 10 15 20 25 30 35 2024 2015 2016 2017 2018 2019 2020 2021 2022 2023 13.4 13.7 19.4 20.8 22.9 24.5 28.0 31.1 31.2 Property value Average valuation yield • Resilient valuation over time. Diös cities at around 6% valuation yield since 2013 • Still a positive yield gap relative to financing cost • Yield increase have largely been offset by rent growth • New construction has increased market vacancies in recent years • Divestments of fully let residentials and fully developed properties with a high occupancy rate affect the vacancies 31.4 2024 2015 2016 2017 2018 2019 2020 2021 2022 2023 2025 32.5 2025
Page 4
Growth in income from property management SEKm 2025 Oct-Dec 2024 Oct-Dec ∆% 2025 Jan-Dec 2024 Jan-Dec Total income 1 669 632 6 2,662 2,527 Property cost 2 -231 -219 -5 -834 -799 Operating surplus 438 414 6 1,828 1,728 Central administration -28 -26 -8 -90 -85 Net financial items 3 -185 -193 4 -757 -752 Income from Property Management 4 225 194 16 981 892 Value changes, properties 5 99 11 -21 -67 Value changes, derivatives 6 55 180 67 68 Current tax 3 8 -76 -75 Deferred tax -47 -67 -143 -127 Profit after tax 336 326 808 691 Intro Operation Portfolio OutlookFinancing • Acquisitions and completed projects are lifting rental income • Occupancy rate was 90% 1 • Higher regulated utilities costs drives cost • Challenging comparison quarter • Increased energy efficiency by 5.4% • Surplus ratio was 67% 4Q25 vs 67% 4Q24. 2 • Average financing margins continues to decrease. • LTV at 52.5% - amortized debt following property divestment • Net debt to EBITDA at 9.8 times 3 • Positive value changes mainly due to new lettings5 • Higher market rates translates into positive unrealized value changes6 4 • Growth in Income from Property Management was 16% QoQ, • Growth in Income from Property Management, YTD was 10%. 4 2026-02-13 │Q4 2025 Earnings call
Page 5
58% 13% 8% 7% 7% 3%5% Rental value, type of premises Office Retail Hotel/ restaurants Residential Health care/ education Industrial/ warehouse Other Stable revenue base 17% 12% 15% 15% 16% 8% 17% Rental value, business area Dalarna Gävle Sundsvall Åre/ Östersund Umeå Skellefteå Luleå Intro Operation Portfolio OutlookFinancing • Low concentration risk across property type, geography and tenant base • Secure cashflow from public related tenants (i.e. government funded) and residential. • Renegotiations are carried out at CPI-adjusted levels, or higher. • 98% of commercial lease agreement have indexation and 95% have CPI-linked adjustments. • A resilient tenant base with strong ability to absorb CPI adjustments. 24 4 3 8 Rental growth 1.4% Like-for-like rental growth 95% Of commercial lease contracts have CPI-linked indexation 632 669 52026-02-13 │Q4 2025 Earnings call
Page 6
-100 -50 0 50 100 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2021 2022 2023 2024 2025 SEKm New letting Terminated leases RTM Net Solid net letting track record and very low tenant concentration risk • Net letting amounts to SEK -1m for 4Q25 • Positive net letting 25 of 28 latest quarters • Majority of net letting is green lease agreements • Stable WAULT of 3.4 years, allowing for rent reversion opportunities in mid-term on top of indexation 10 largest tenants Tenant No. of contracts Annual rental value, SEKm WAULT Swedish Transport Administration 38 114,219 5,1 Swedish Police Authority 67 67,902 5,6 Swedish Social Insurance Agency 16 59,921 3,6 Strawberry 6 59,799 12,3 Swedish Public Employment Service 27 37,896 2,3 Municipality of Falun 13 35,876 4,8 Telia Sverige AB 38 35,221 4,9 Sweco Sverige AB 63 34,932 1,5 Swedbank AB 11 31,505 3,4 AFRY AB 14 28,246 2,9 Total 293 505,517 5,1 • 5 out of 10 largest tenants are businesses in the national, regional or local government sectors • Ten largest account for 20% of total rental value business in the central, regional or local government sectors Intro Operation Portfolio OutlookFinancing Net letting 62026-02-13 │Q4 2025 Earnings call
Page 7
Asset rotation creates growth opportunities SEKm No of properties Property portfolio, 1 Jan 31,413 323 Acquisitions 1,811 7 Investments in new builds, extensions and conversions 940 Disposals -1,630 -15 Unrealized change in values 11 Property portfolio, 31 Dec 32,545 315 Intro Operation Portfolio OutlookFinancing • Capitalized interest on CAPEX effects unrealized value changes by SEK -4m for 4Q25. • Portfolio concentrated in 9 cities. Continuous asset rotation away from locations that do not fit the long-term strategic plan. • Market key characteristic is stability, relative higher yields and lower volatility in property values and rents.. 6,10% 5,00% 5,20% 5,40% 5,60% 5,80% 6,00% 6,20% 2017 2018 2019 2020 2021 2022 2023 2024 2025 Valuation yield KPIs WAULT, years 3.4 Lettable area, ’000 1,582 Book value per sqm 20,569 No of commercial lease contracts 2,942 72026-02-13 │Q4 2025 Earnings call
Page 8
Sensible investment criteria form basis for accretive growth Tenant: Swedish Defence Conscription and Assessment Agency Office, Q2 2026, SEK 130m, 5,321 sqm. Tenant: Academedia Education, Q3 2026, SEK 117m 5,283 sqm. Condominiums Residentials, Q1 2027, SEK 197m 5,062 sqm. Intro Operation Portfolio OutlookFinancing • Pick-up in investment of tenant adaptation • Major projects are built with no speculation • All new projects are built according to BREEAM, at least level “very good”, -20% to BBR (national law) and Life-cycle GWP value • CAPEX to be focused on tenant adaptation and acquisitions Condominiums Residentials, Q1 2026, SEK 132m 2,800 sqm. 0 200 400 600 800 1 000 1 200 1 400 1 600 1 800 2021 2022 2023 2024 2025 SEKm Total investments Project properties Tenant adaptation CAPEX 8 2026-02-13 │Q4 2025 Earnings call
Page 9
Cost of debt continues lower 0 500 1 000 1 500 2 000 2 500 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q1 Q3 2026 2027 2028 2029 2030 2033 2035 SEKm Bank loan SFF-bond Green unsecured bond Intro Operation Portfolio OutlookFinancing 63%7% 14% 16% Financing sources Bank loan SFF bond Commercial paper Green unsecured bond • Average cost of debt lower than marginal cost of debt • Committed to keep ICR ≥ 2.0 and LTV at 55%-45% • Improved margins and good liquidity in the bond market • Bank margins at attractive levels • Yield-gap continues to increase Financial KPIs KPI Dec 2025 (Dec 2024) Target/ covenant LTV 52.5% (52.9) <55% / <65% Secured LTV 36.6% (39.9) - ICR 2.3 (2.2) >2.0 / >1.5 Fixed rate maturity 2.1y (2.7) Debt maturity 2.6y (2.2) Hedging ratio 68% (71) Interest rate 3.9% (4.3) Equity ratio 36.5% (36.2) >30% / >25% Maturity profile * Commercial paper excluded, back up facilities in banks. 92026-02-13 │Q4 2025 Earnings call
Page 10
Conservative balance sheet approach Loan-to-value <55%* 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 2025 2015 2016 2017 2018 2019 2020 2021 2022 2023 Net debt / EBITDA Interest cover ratio ≥2.0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 0,0 0,5 1,0 1,5 2,0 2,5 3,0 3,5 4,0 4,5 5,0 5,5 6,0 6,5 7,0 Covenant <65% Target <55%* Target >2.0x Unsecured LTV Secured LTV Intro Operation Portfolio OutlookFinancing 2024 * long-term 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2025 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 Covenant >1.5x 2026-02-13 │Q4 2025 Earnings call
Page 11
Great conditions for economic growth • Hydropower • Windpower • Available land • Cold climate • Solid governing structure • NATO membership • Attractive 15-min cities • Green steel production • Electro fuel • Forestry • Data centres • Military investments Intro Operation Portfolio OutlookFinancing 112026-02-13 │Q4 2025 Earnings call
Page 12
Intro Operation Portfolio OutlookFinancing Investments 12 Biet 7, Luleå Office building 5,709 sqm. 2026-02-13 │Q4 2025 Earnings call Kraften 12, Umeå Hotel 2,563 sqm. Region Jämtland Härjedalen Healthcare centre, 10y lease 3,500 sqm YoC >8% Completed projects i Q4 New lettings Evidensia Veterinary care, 15y lease 1,000 sqm YoC >9% Member24 Gym, 10y lease 1,450 sqm YoC >12% Östersund Gävle Gävle
Page 13
Strategies for profitable growth Investment strategy - What should we invest in and where? Leasing and property management strategy - Optimize revenue and costs Portfolio strategy - Which properties should we own? 13 Intro Operation Portfolio OutlookFinancing 132026-02-13 │Q4 2025 Earnings call
Page 14
Unique position in an attractive market We are the market-leading property owner in a geography where large investments create very good growth conditions. Long-term profitability Our business model is based on continuously developing attractive premises that create tenant value. Strong stable cash flow . A well-diversified property portfolio across segments and geographies supports low tenant concentration and delivers an attractive yield-gap. Invest in Diös 14 Intro Operation Portfolio OutlookFinancing
Page 15
2025-02-14 │ Q4 2024 Earnings call Q&A 15
Page 16
Speakers David Carlsson, CEO CEO since 2025 Shareholdings 25,000 Rolf Larsson, CFO CFO since 2005 Shareholdings 16,000 Johan Dernmar, CIRO Chief Investor Relations Officer since 2023 (in the company since 2015) Shareholdings 11,000 Intro Operation Portfolio OutlookFinancing 162026-02-13 │Q4 2025 Earnings call
Page 17
Thank you! Contact Johan Dernmar Chief Investor Relations Officer +4610-470 95 20 johan.dernmar@dios.se