Ladies and gentlemen, welcome to the Platzer Fastigheter audio cast with teleconference Q2 2021. For the first part of the call, all participants will be in a listen-only mode. Afterwards, there will be a question and answer session. Today, I'm pleased to present CEO, P-G Persson, and CFO, Fredrik Sjudin. Please begin. Hello, everybody. This is P-G Persson calling from Gothenburg. I'm the CEO at Platzer, and with me I have- Fredrik Sjudin, CFO. Yeah. We're happy to have you all listening to us to do our presentation of our Q2 interim report, which we think is a really good one, and there's a lot of things that have been happening in the Q2 report. We will do it in two sections. One section when I talk a lot about what has been happening activity-wise, and then one section when Fredrik will go through the numbers. I will advise you to go to slide two, please. On slide two, we have a summary of what activities we have done, the large activities in Q2, and it's been a really good Q2 when we have done a lot of things, strategic good things for the company, both in the short, immediate terms, and also in the long-term. We bought portfolios, which is the next largest one, the second largest one in the history of Platzer, and I have been the CEO since 2008, so it's 13 years now. It was SEK 1.9 billion from Higab, and we will talk a little bit more about that later on in this presentation. We also got rented out a new logistic property to NTEX, 14,000 sq m, which I will also come to a little bit later. We did a combination deal with Volvo Cars, which one part was renting out and doing project development, and the other part was sale of two office properties in Torslanda. We also got our share in green designation from Nasdaq, which we are very proud of. We are the first company on Large Cap, and I will also come back to that. We were also included in EPRA Index, 21st of June, and also we got an investment grade rating BBB-. Please change to slide three. The numbers, which I will summarize here and Fredrik will go through in detail in the presentation. We increased our rental income. We also increased our income from property management to SEK 365 million last year, and everything is in Swedish krona, million Swedish krona, of course. I hope you're familiar with that. The profit for the period increased a lot, Fredrik will tell you why. We also increased the portfolio, mainly because of the acquisition and also from the product development and value changes. Also, of course, the earnings per share total too, and the NAV and NRV increased. Fredrik will go through all those numbers coming up the next couple of slides. I will hand over to you, Fredrik, and you will also get them to know what slide we're getting to. We can start with slide four, rental income, and I will give you some comments about that. We have a total increase of 3.2% for the period. Like-for-like is negative, but that is depending on the property development projects in existing investment properties. The positive outcome out of this is mainly due to Gårda Vesta, our project that our tenants have started moving in, and the other part is our acquisition in Q3 2020 of a property called Inom Vallgraven 54:11. You can take the next slide, please. Our rental income, as I said, increased with 3%. We have an operating surplus that also increased 3%. We have a record quarter now. For the quarter, we have SEK 229 million, so in the isolated quarter. Our income from property management increases with the same rate. We have a really positive period for the change in value of properties, and for the isolated quarter in Q2, we have the value uplift from our projects, which we were lacking in Q1. It's a much better quarter for us, and we are in line even a bit better than the previous period of 2020. We are coming out really good for the first half of the year, looking at our value uplift. We have a positive effect if you look at the change in value and derivatives, our financial instruments. There's a difference there in the period with SEK 200 million. That's a contributor as well to the profit for the period. Mainly because of profit development. Next slide, please. Okay. We are in a good region. We like Gothenburg, otherwise we wouldn't be here totally focused on Gothenburg and the region. We have a decreasing unemployment. We have the best unemployment rates if you compare us to Stockholm and Malmö region for now. We have a strong recovery with the automotive industry that's coming back really good with good order books. We are looking really forward to what that can bring in for us and our tenants, actually, some of them who are dependent on the automotive industry. As well as the export industry, we have a harbor that's reporting better and better numbers due to the focus on export in the Gothenburg region. If we change to slide seven, we are on the limit to a really good period because we have a good recovery from the pandemic. We are now at a value of 107.5, anything above 100 is a positive indicator. We had a sharp during COVID-19, we have recovered really well in the trade and industry in Gothenburg. Next slide, please. The net letting for the period is positive. We had a positive Q1 and a positive Q2 that we are really happy about. We can sense that we are coming back, and then P-G will talk some more about the project lettings we are down for the period. Which are not included. Which are not included in these numbers. You will have them to remember because when they are in 18 months, they will be included in the net letting. The lettings that P-G will talk about is not included in these numbers. We are keeping pace with the previous year, and we hope to increase looking forward. If we take the next slide, we have some historical numbers and our disappointing Q3 there. We had the only quarter for a long period of time with negative net letting. We are of course, working really hard with our renting out department to making the net letting positive in every single quarter looking forward. Next slide, please. The contract structure. We have rental income in around SEK 1.2 billion, and our 20 largest leases is represented in 32% of the rental value. Hence, the newly made transaction, we will have a bit more tax finance leases, and for now, we have 21% tax finance properties, and it will increase to 26% when we have taken into account the whole transaction of SEK 1.9 billion. Next slide, please. Here we have a breakdown of the rental income, which shows that in the comparable properties, we have a negative development, 2.7%, and that's because of the properties that we have emptied now to do a property development project. It's 2 properties in Gullbergsvass CBD that are affected, and that will show in the numbers of the segment reporting, which is the next slide. If we change to that one. We are in our office business area. We are divided into 3 geographical areas. Central, south and west, north and east of Gothenburg. We have now in the books. The first section of the transaction with Higab in the books, which affects the central Gothenburg numbers. We now have SEK 12.9 billion of fair value in properties. The second stage will happen in Q3, Q4. Something else to take into consideration, we are keeping pace with our project properties, and we are in about 9% of value in project properties. Some of them will be finished during 2021 in Gårda Vesta, and we will get back to that later. Next slide, please. As I said before, during the income statement, we have SEK 500 million in changes in value for the period. We also have the acquisitions, and we have SEK 900 million worth of acquisitions for the period, and the second phase will come in later during 2021. We also have put SEK 110 million made in investment in existing properties. That will build up to our summarized value of SEK 24.4 billion for Platzer in Q2. Next slide, please. You have here a trend over time since 2013, where Platzer was made a public company. The difference is you see we have the less red is the industrial logistics, which is from the deal we made with Volvo in late 2016, where we bought a large portfolio from Volvo. Volvo was SEK 2.8 billion, which is the largest ever in Platzer's history. This is the largest one now with Higab, without adding some equity from our shareholders. We managed this one without any emissions. Next slide, please. Our balance sheet for the period, our assets, as I said, SEK 24.4 billion. We have a solid increase in equity for the period. We are making good results. The deferred tax increased as well with the valuation of our properties, of course. We have some increase in debt because we are ongoing in investments, both acquisitions and our project developments. Next slide, please. Our key figures are going better and better. We have had a loan-to-value that has had a decrease for some time since 2019. We changed our target to, over time, keep below 50%. Now with this deal, of course, it will affect that key figure. We are confident we can manage with our 50% maximum and still produce good value looking forward. Equity assets ratio is 40%, keeping good pace forward. Our investment yield is diminishing somewhat since Q4, and we are down at 3.8% right now. We are looking good in surplus ratio. We had a really good year last year, and we are hoping to keep the pace looking forward as well. A key figure to comment as well is the economic occupancy rate that is going down, and that is because of the property development we are doing in our investment properties in Lindholmen. It's the main cause of that one. Next slide, please. We have a really good organization. We're working hard. You see some happy employees working in the harbor of Gothenburg in the picture. They don't only do that, they create value over time. You can see a steady pace of increase in the EPRA NAV since 2013. We were about SEK 30 per share then. Now we are about SEK 100. We are in a three-digit area now, which we are very happy about. Next slide, please. It has some charts over the development of our financial targets, actually. We have had a totally different environment regarding our loan-to-value. We were about 60% for a period of time when we went public in 2013, we have improved our numbers ever since, both the LTV and the interest coverage ratio, as well as equity to assets ratio. Next slide, please. In our financing, we have a good property management organization, 90% of our properties are environmentally certified. That's really good for the finance department looking to allocate some green financing, which we are doing continuously. Those are follow-ups maybe reflected over that we had 61% in Q1. Now we are 59%. Our target for the year is to achieve 70% green financing. Due to the acquisition of the properties which are not certified, we have something to work with to make those properties even better. They are good today, but they're not certified, and we think in our property management, we can improve them even further and make good use of them in the green finance departments. About 14% we have in green bonds with SFF, Svensk FastighetsFinansiering, and we have 45% of our financing from green bank loans. Next slide, please. Yes. A slide of our earnings capacity, which is the closest you will get to a forecast from us. This is signed agreements looking forward where we have taken in consideration the property management costs, and we have an operating surplus looking forward, which will land on SEK 960 million. Here you see the proportions where the fair value is allocated. We have 53% in central Gothenburg, which is CBD and the adjacent CBD area, and we have 9% in our project properties, 16% in industrial logistics, which is a number that will increase due to the project portfolio in the pipeline. With that, we can take the next slide and I will hand over to P-G. Yes. I will go back to slide 20, and I will just give you some additional word and say that I think you should also notice on page 11 in the report that we have rental income. I will go through the projects then. Lots of our projects are already rented out since we have our 18-month requirement to get it into earnings capacity. We today have, I think, SEK 102 million or something in the page 11. I can't remember from my head, I don't have the report in front of me. I'll just advise you to SEK 108 million plus SEK 12 million in already signed contracts that will come in the books in the future. I will do the section two in the summary and start with the acquisition we did. Now we are on page 22, please. The first property we are accessing, and we already have access, is the Änggården, the Odontologen, which is half of the value in the acquisition, and it's an area of 31,000 sq m, and it's a rental income of SEK 45 million, which is in the earnings capacity for Q2 report. If you change slide to slide 23. We have the second property we bought. It's the Biotech Center, and we accessed that one preliminary on September 30. The rental income is SEK 25 million. It is not in the books yet. The third one is Hälsovetarbacken, which we accessed on September 30th as well. The area is 12,200 sq m, the rental income is SEK 20 million. What's the good thing about this acquisition? We get more value on the books, we get more rental income, we also spread the risks because the tenants are all state tenants, except from the Biotech Center where we have life science. We get a new client base. We already have, of course, state and municipality tenants, we get a new base for the life science cluster in Medicinareberget, we spread the risk because you see in the numbers when Fredrik went through the contracts, you can see that we are not as much dependent. The larger we get and the more we spread the contract structure, we also spread the risks on one single tenant. I think this is perfect. We also can be a part in the future of developing this area. This is an area with a lot of future, and we can be part of that future. There's a lot more to come in the future in this area, and we can be one part of all that. Slide 26, please. The next thing on the acquisition is not acquisition, it's a divestment. We divested two properties to Volvo Cars. One of them is the old headquarter of the other Volvo, not the Volvo Car Volvo, the truck Volvo, which we acquired when we did the Artosa acquisition, which Fredrik mentioned before, 2016. The resignation will be in September 1st, so it's not in the books yet. The area is around 10,000 sq m. We go to slide 27. The other building that we are selling to Volvo Car is Sörred 7:24. It's also being sold or resignation in September 1st. It's been signed, of course, the deal, otherwise it wouldn't have been in the future report. The area is 15,000 sq m, and both those are office buildings and close to the Volvo Cars headquarters. Volvo will have more space available in the future for their office people in Torslanda. For us, it's a good situation because we are now moving out of the office market in Torslanda, which are very dependent on a few tenants. We are also doing in the deal with VCC, Volvo, we also did a renting out of a logistics building, 20,000 sq m. I will come to that a little bit later in this report, in the slide structure. Please go to slide 29. I will go through some of our projects, and if you've heard of me and Fredrik talking before, you probably heard this a couple of times, but now it's really soon to be finished. The Gårda Vesta, 37,000 sq m. We are completing it in Q4 2021. We have invested SEK 1.2 billion, and we have the occupancy rate when we stopped in the Q2 was 95%. We are working, we only have two spaces left. I think in Q3, we will probably have an occupancy rate of 100%. I hope. I think that it's not too high of an expectation. Next large project in Gårda is Kineum. It's 42,000 sq m in total, but 26,000 sq m new area. That's the spider building is the new one, and the one to the left you can see it in the right picture is the old building. We are putting them together as one building in the future. The project will be completed in Q3 2022. It's a total investment, and it's the old building, of course, SEK 600 million, and also the investment. The total investment, it's different from Gårda Vesta where we have only one investment. It's a new building only. This is the total investment for both the existing building when we started the project. Today, we have an occupancy rate of 82%, and this is done together with NCC. It's a joint venture, 50% each. When the project is finished, we are buying the 50% back from NCC, so we will own it 100% in the future. Please go to slide 31. Fredrik has talked about the comparison where we end up being negative if you look like-for-like. That's because we have emptied this building. Not only, but the main reason is that we emptied this building. We had the tenant Schenker moved out, and we're now doing a project in an existing building, and that's why the numbers get so strange. It looks like we are not doing our job, but we definitely are because this will be a really good project. The occupancy rate today is 46% when we start this project, and we have started it. We hope to complete it in Q3 2023. The total investment, of course, that's a lot is already the value of the building when we start, and the total investment will be SEK 1.1 billion. This is a really good area in CBD, and so we're already starting to have a lot of interest from potential tenants. We will talk more about this in the future reports. Next slide, please, 32. This is the Merkur, the building, which consists of one new building, the one you see in the picture. The old building is back behind. The area 5,400 sq m is the new building only. The next step for this building is to do a refurbishment of the old building as well. This one is completed in Q4. We have invested in the new building SEK 270. The occupancy rate today is 62%. This is a JV with Bygg-Göta, local Gothenburg company, not listed. This project is right in the middle of Gothenburg, at [Kvillebäcken]. Next slide, 33. This is the JV. Now I move from office buildings, office projects to logistic projects. These are the projects we are doing with Bockasjö, which are today two properties. Will probably in the future become five or six properties. This is how it looks when it's finished. Today, it's only groundworks. We are working to prepare us, and we're also working with the pre-letting activities together with Bockasjö. It's around 130,000 sq m in total when everything is finished. Next slide, please. Now I'm moving into the project development and the renting out, which are almost the same in the logistics because you have one building and one tenant. The first one is NTEX, where we have rented out 13,950 sq m in our property Syrhåla 3:1. If I go to slide 35, you can see where that is located. At the same property, we have one existing building, but it's a large area of land. We are also doing the Volvo Cars logistic project, 20,000 sq m. The Syrhåla 3:1 will in the future become 1 25,000 sq m existing building and two new buildings around 34,000-35,000 sq m. It's right next to the Volvo Cars plant. We think we can do a lot more interesting in the future with Volvo Cars being so close to both the plant and also close to the harbor. You can see Arendal down there in the bottom of the picture. In the summary Q2, it's a totally different thing than the projects and the acquisitions. It's the green designations, which we are very proud of. We are the first Large Cap company being part of the Nasdaq Green Equity Designation, we think this will become a large and very important thing in sustainability in the future where Nasdaq companies will acquire for the Nasdaq Green Equity Designation. We are a long way above the target. The target is 50% turnover. We are a way above that, somewhere Nasdaq has to get started. We think that this will be really good for investors in the future to have an easier way to get in contact or get green investments where we also have Nasdaq. We are communicating as much as we can. We think that this will be a little bit easier for investors if also Nasdaq is doing what they can. We're very happy to be part of that. We'll change slide to 37. We also in this quarter, we got included in the EPRA Index. Of course, that's good for the share, although we are always working with the company, not so much the share. It's the share of the company. We are trying to get the EPRA NRV and all the other numbers to be as good as possible, and I'm hopeful that the investors will like that. Of course, it's good to be in a global large index. We of course get our share to reach a wider investor base, and that will also, I think, create value for our existing shareholders. Please change to slide 38. I'm almost done, hold on. One other thing we did in Q2 was a very active choice. We started out this in September 2020, and we got everything cleared in Q2 now. We are an investment-grade rated company from NCR. Of course, there are two things why we did it. Of course, the one thing is to increase the security for investors in the capital market and get a better position in hard times. We all saw what happened when COVID started and broke out. When COVID broke out in March, April, it was really tough for the not investment-grade companies to get loans from the capital market. Also, of course, we are hoping for a better position for competitive financing. That's, I think, the two key elements for why we are getting investment grade. The last but not least, slide 39. Why invest in Platzer? We think that, like Fredrik started very early in this presentation, Gothenburg is recovering really good. We are in a good position in the number two there. Gothenburg is still a good market to be a part of. We also are focusing on commercial properties. It's easy to know what we are doing. Now we are widening our area base with the new acquisition of Medicinareberget, but also with a more widened tenant base. We have a clear model for value creation. It's easy to follow. We are doing acquisitions, we are doing development projects, but the bread and butter is the daily basis, owning and cash flow from owning properties. We are growing by SEK 2.5 billion-SEK 3 billion a year. That's our pace, and we hope we can do that this year and also in the future. We have an extensive portfolio of development projects. Although we are now doing 35,000 sq m of renting out in the logistics, we have a lot more. We have around 17,000 to 19,000 already zoning-planned, more potential. We also have not zone-planned land that we are working with to get into zoning plans. I think we are a really engagement good company. We have a good feeling in this area, and we like to be part of making Gothenburg great. I think we are doing very good projects in this region so that we can be proud, not only you investing in us, but also our employees, the municipality politicians, and everybody that likes to get Gothenburg to be a great place to work and live in. I will stop there. Do you have anything, Fredrik, that we forgot? We have already spent 45 minutes. I think we covered it. We will hand over to questions. Thank you. Ladies and gentlemen, we are now ready to take your questions. If you wish to ask a question, please press zero on your telephone keypad. Our first question comes from Albin Sandberg from Kepler Cheuvreux. Please go ahead. Hi there, guys. I have three questions. I take them one by one. What is the most recent update on the Södra Änggården project and the re-deal finalization on that? Yes. The latest update is that the municipality has answered the court. The highest court has asked the municipality to answer a couple of questions around the appeal from Pågen. They have done that, and the court will now look into that, and we will see their next step. In the best time schedule, they will have some jurisdiction in Q4, but more likely that will be in Q1 or I think Q1 2022 we will get a jurisdiction from that court. Yeah. Okay. You still think it will be a positive one? Yeah. We had a very positive one from the first court, so why shouldn't it be as positive on the second one? We see no reason that the second court will have another, but of course, a court is a court. An appeal is an appeal. Okay, great. Thanks. Let's talk about your projects and just more on, let's say, maybe medium term view on Platzer. Now you have your new leverage target and so forth, combination of what your own, let's say, organization can do, but also what the market can swallow. Where do you see, let's say, a reasonable size of your, I don't know if you call it a steady state project development pipeline, the way you're looking at Platzer now? We still aim for 50% development projects and 50% net acquisitions in the SEK 2.5 billion-SEK 3 billion growth. I will say, if you make it easy, you say the way it has been around SEK 1 billion in investments, SEK 1 billion net in acquisition, and SEK 500 million to SEK 1 billion in gross value. Okay, that's great. My final question, also now lessons learned from since the outbreak of COVID-19 and fears in the marketplace around work from home, what else has meant to tenants and maybe your discussion with tenants. What's your view of how the office market looks like now in terms of a demand perspective? There has been a structural change now for a lot of years. When I started in this field, 1994, we had around 35 sq m per workplace, and before COVID was around 15. I think that will go down a bit further, but not as much because I think that it will be even more important in the future to have the culture carrier, the meeting point. We think that people will work more from home than before COVID, but not as much as that you're not going to be at the office at all. We expect that maybe there will be a slight down in sq m per workplace, but not as much. I don't know if that was the answer to. Yeah. Maybe more details on what have you actually seen during the first half on your either new negotiations or renegotiation with tenants in terms of how much space they demand and so on. We haven't seen any change. The vacancy rates in Gothenburg has been very high compared in a historic way, we don't have the statistics for Q2 yet, but if you look in how it works here, we think that the vacancy rates will come down again because there's a much higher demand right now than we had before especially in Q3, I think that was the worst quarter, Q3 2020. Okay. I just had a follow-up there, so maybe you answer that. Yeah, it's not only you doing developments in the Gothenburg area, but you see no risk of, let's say, oversupply coming into the market, which possibly could hit rental levels? If you look at rental levels around SEK 4,000 per sq m, I think if you calculate on that doing a project, that could be a problem. Our projects, if you get SEK 3,000, like the rental levels is today, we get a good return of investment. I think the rental levels will be stable, and the ones that can manage on those stable levels, they will do good projects and Platzer is definitely one of them. We're not depending on an increase of rental levels to do our projects, and not to do our renegotiations either because we have old lease contracts that have a lot lower rents than the market rent today. Okay, thanks a lot, P-G and Fredrik. Thank you, Albin. Okay, as there appear to be no further questions, I return the conference to speakers for any closing remarks. We can only thank you very much for listening. This was the first time in this format. Yes. We will do this again. Feel free to give us a response on if you thought it was too long or what we should do in order to improve because we would like to give you as much of information as possible from the report, but also not getting too much information in so that we aren't doing this presentation too long. Thank you very much for listening. Thank you very much for listening.