Slides
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Year-end report 2025 Presentation by company management
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Highlights of the quarter 2 ▪ Growth strategy continuation ▪ Accessed acquired properties for MSEK 703. ▪ Signed acquisitions to be completed of MSEK 140. ▪ Continued focus on investments in existing property portfolio, reaching MSEK 252. ▪ Continuous positive net letting of MSEK +22 ▪ Increased demand in the rental market following gradual improvement in the economy. ▪ The board of directors proposes a dividend of SEK 6.40 (5.20) per common share and SEK 2.00 (2.00) per preference share. ▪ Forecast for profit from property management MSEK 1,180 for 2026 (+7%).
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Highlights 2025 3 ▪ Investment activities ▪ Accessed acquired properties for MSEK 1,942, of which a majority in business areas Middle Sweden and Gävle. ▪ Divested properties for MSEK 549, mainly consisting of three retail properties with a value concentration to Kiruna. ▪ Increased commencement of new construction projects and continuous high activity in tenant adaptations, with project CAPEX totaling MSEK 781 (731). ▪ Funding activities ▪ Revised LTV target of <60% (55-65%) with an ambition to long-term maintain 50-55% LTV. ▪ New issue of preference shares during May raising proceeds of MSEK 394. ▪ Refinanced bond with maturity in April 2026, at Stibor 3M + 215 BPS. ▪ Refinanced bank loans of approximately SEK 8 bn extending the average loan maturity at improved terms. ▪ Operations ▪ Net letting +52 MSEK ▪ Stable occupancy and surplus ratio ▪ Continued diversification in number of assets, rental agreements and tenants. Achieving and exceeding corporate financial targets
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Robust financial development in a volatile environment 4 93 93 94 93 93 92 0 20 40 60 80 100 500 1,000 1,500 2,000 2,500 3,000 0 MSEK % 92 1,144 2020 102 1,436 2021 122 1,758 2022 137 1,929 172 2,154 2024 202 2,376 2025 1,236 1,538 1,880 2,065 2,326 2,578 2023 Rental value +16% CAGR Occupancy rate Vacancy Contracted rent 817 912 558 661 785 745 879 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 MSEK 2020 2021 2022 2023 2024 2025 1,149 1,353 1,503 1,725 1,104 PFPM +15% CAGR Net operating income Profit from property management 9 11 13 12 14 16 18 17 18 13 12 0 5 10 15 20 0 2 4 6 8 10 12 14 16 18 SEK% 2020 2021 2022 2023 11 2024 2025 PFPM per common share PFPM per common share 5-year CAGR Growth target 19 45 22 14 16 22 26 26 22 20 19 0 10 20 30 40 50 % 2020 2021 2022 0 2023 2024 2025 0 Return on equity, before tax (ROE) ROE 5-year avg. ROE target Growth strategy continuation Target achievement
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Summary of 2025 5 ▪ Rental income: MSEK 2,274 (1,992) +14% ▪ Surplus ratio: 76% (75%) ▪ Profit from property management (PFPM): MSEK 1,104 (879) +26% ▪ PFPM per common share: SEK 16.33 (13.57) +20% ▪ Forecast PFPM 2026: MSEK 1,180 +7% 781 2024 1,942 Acquisitions Investments -549 Divestments 23 Realised changes in value 506 Unrealised changes in value 2025 23,384 26,087 MSEK +2,703 Financial outcome Property portfolio Property value developmentRental agreement structure ▪ Rental value: MSEK 2,578 (2,326) ▪ Occupancy rate: 92% (93) ▪ WAULT: 4.1 years (4.0) ▪ Number of rental agreements: 2,775 (2,700) ▪ Net letting: MSEK +52 (+30) Property value: MSEK 26,087 (23,384) ▪ Number of properties: 633 (554) ▪ Property value per sqm: SEK 11,044 (10,624) ▪ Valuation yield: 7.08% (7.10) Comparisons in brackets relate to the corresponding period of the previous year regarding income statement items and end of previous year for balance sheet items . 52 453 Yield Cash flow
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Diversified and stable tenant portfolio 6 ▪ Number of rental agreements: 155 ▪ Rental value: MSEK 340 ▪ Share of total rental value: 13% ▪ WAULT: 5.3 years Ten largest tenants Comments Industry exposure, % ▪ Well diversified tenant portfolio across several dimensions ▪ Low dependency on a few larger tenants ▪ Low share of late payments indicates financial stability among tenants ▪ Gradual increase in investments in tenant adaptations and new construction ▪ Ability to convert premises for re-letting, enabled by local presence and concentration in attractive areas within the company’s locations ▪ Limited direct dependence on export and import in tenants’ operations 15% 12% 11% 10%10% 9% 8% 8% 6% 11% Manufacturing and light industry 15 (15) State and municipality 12 (11) Vehicles and workshops 11 (10) Construction and production 10 (10) Industrial and construction supplies 10 (11) Consumer discretionary goods 9 (10) Real estate and finance 8 (9) Food and leisure 8 (9) Grocery stores 6 (4) Other 11 (11) Comparisons in brackets relate to the corresponding period of the previous year regarding income statement items and end of previous year for balance sheet items .
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Funding 7 Summary Comments ▪ Total interest-bearing liabilities MSEK 14,059 (12,587) ▪ Avg. loan maturity period 3.0 years (2.3) ▪ Avg. fixed interest period 1.9 years (2.1) ▪ Proportion of interest hedging 54% (49) ▪ Avg. interest rate3.95% (4.38) ▪ Interest coverage ratio, x 2.8 (2.4) ▪ Loan-to-value 51% (52) ▪ Net debt to EBITDA, x 8.1 (8.0) 401 657 32 400 450 800 490 300 300 Years to maturity <1 1-2 3,256 2-3 3-4 2,469 4-5 5-10 801 1,407 4,356 4,399 2,959 4,399 ▪ Refinanced approximately SEK 8 bn in bank loans during the year to extend the average loan maturity, improve the maturity structure at improved terms. ▪ Maintained improved financial risk profile through a lower LTV ratio, improved maturity structure and ICR ratio. 0,0x 1,0x 2,0x 3,0x 4,0x 5,0x 6,0x 0 10 20 30 40 50 60 70 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2019 2020 2021 2022 2023 2024 2025 % / xLTV % LTV, % ICR LTM, x Avg. interest rate, % Comparisons in brackets relate to end of previous year. 1. Maturities relates to secured back-up facilities. Commercial papers¹ Bond loans Bank loans Maturity structure LTV, ICR and average interest rate development
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Reduce emissions in Scope 1 & 2 with 42% and Scope 3 with 25% by 2030 compared to 2022, with net-zero emissions by 2045 in accordance with SBTi Total energy consumption should decrease by 20% by year-end 2025 compared to 2017 Green property portfolio should grow by 25% annually Improve EPC labels from E/F/G on at least 10 properties per year until 2033 2022 2023 2024 2025 Target 2025 3,413 4,286 5,862 7,600 7,328 +30% Primary sustainability targets Green portfolio Example of energy projects ▪ Value: MSEK 7,600 ▪ Annual growth target: 25% ▪ Growth 2025: 30% Improved EPC labels Slakteriet 3, Västerås ▪ Ongoing project to improve indoor climate and energy efficiency by replacing ventilation units and control equipment. ▪ The project is expected to achieve an energy saving of approximately 9%. ▪ Investment: MSEK 1.1 Sustainability related to the property portfolio ▪ Year-to-date, 22 buildings have achieved improved EPC labels following completed measures, upgrading from their previous energy ratings of E, F or G. ▪ Weighted average primary energy rating for the improved buildings have decreased from 158 kWh/sqm to 78 kWh/sqm. 8
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Resilient business model in an economic growth region 9 Area Aspects High degree of diversification ▪ Well-diversified property portfolio across several dimensions – 633 properties ▪ Low dependency on a few larger tenants Geographical focus & Local presence ▪ Through eight business areas - all important locations and geographies are covered - being a pre-condition for strong relationship with local business life, tenants and municipalities ▪ Geography and stable rental market - important parameters for property value Cash flow generating business model ▪ Property portfolio valued at 7.08% – positive yield spread ▪ Operating surplus 76% (LTM) – Stable vacancy rate Sustainability ▪ Focus on the properties energy efficiency and to improve the worst performing properties ▪ Ongoing initiatives to reduce the company’s climate footprint Projects ▪ Continued high volume of new constructions as well as accretive investments in existing property portfolio Long-term growth ▪ Advantageous position in a geography with regional development enables continued growth opportunities ▪ Capacity and readiness to continue acting on future investment opportunities
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Q&A 10