Welcome everyone to this presentation of Pandox first quarter report for 2021. I'm Anders Berg, Head of Investor Relations at Pandox. With me in this room, I have Anders Nissen, our CEO, and Liia Nõu, our CFO. In line with our tradition through this pandemic, we also have an external guest with us, and that is Robin Rossmann, who is Managing Director International at STR. As you all well by now, Robin represents a leading independent research firm focused on the hotel market, and he will share their view on this market. As always, we are very happy to have him on board for this presentation. As we always do, we divide the presentation into three parts. We start with Anders and Liia going through the business update and the financial highlights for the quarter. Then we let Robin talk about the external hotel market view. As a final step, we open up for questions. With that, I hand over to you, Anders. Well, thank you very much, Anders, and welcome also from my side to this Q1 report for 2021. We start with a short update about Pandox. Pandox is one of Europe's largest hotel property company. Our main strategy is to buy underperforming hotel and sign long-term revenue-based lease agreement with the best operator, together with our partner, developed the Hotel. If that strategy is not in place, we can choose to operate hotels itself. At the moment, we own 156 hotel properties with 35,000 rooms in 15 countries and in 90 destinations. 136 of this is linked to what we call the property management, meaning the lease portfolio. That representing 84% of the property value. 20 hotels is operator activity. That means our own operations. That representing 16% of the property market value. As you all know, who have followed us, Pandox has a world-class strong network of brands and partners, which are very strong to have in all market conditions, maybe specifically in these days. Just a few words about the quarter from my side before I hand over to Liia. This was another tough quarter for hotel industry and even for Pandox. The negative trend from Q4 continued. As you all remember, the hotel market 2020 was a really much a rollercoaster. It started very strong. There was a collapse in March when COVID-19 arrived, good comeback over summer period and a promising start after the summer, and then new restrictions were imposed again, and the market substantially decreased, and we are still in that business environment. With that said, we are still profitable, and we still have a strong financial position in Pandox. We see a positive development in market outside of Europe. We will come back to this later on. There we have an attractive position in the recovery phase by having most of our hotels in the regional and domestic markets. Some numbers. The return on equity, 30% is 9%. Growth in total net operating income is minus 34%. Like for like growth in property management, minus 14%. As you all remember, we have a good start in last year, January, February, we compare numbers from a very strong performing market, even in this quarter. Liquid funds and credit facilities, SEK 4.6 billion. We have a strong financial position. With that, I hand over for Liia. Yes. Thank you, Anders. Page five, I think we are now. Yes. As Anders just said, demand in the hotel market followed the trend from the fourth quarter with very difficult business conditions in the hotel market. As a consequence, contractual minimum rent and fixed rent were Pandox main sources of income in the quarter. As you know, this income covers all Pandox operating costs, including interest payments. Cash flow in the quarter was impacted by an increase in the trade account receivables as well as investments. End of quarter, trade account receivables related to new payment terms amounted to some SEK 566 million, which is an increase compared with the fourth quarter, which were SEK 439 million. We report negative unrealized value changes in the property management, which reflects lower expected cash flows. I will come back to that later in the presentation. Next page, please. Pandox revenue base is diversified with revenues from different operational models and agreement types. Currently, minimum rent and fixed rent are Pandox main source of revenue. These amount almost SEK 2 billion per year or slightly less than SEK 500 million per quarter. In the first quarter, revenue-based rent amounted to SEK 31 million. No reductions in hotel rents have been given. In the first quarter, revenue from operating activities amounted to SEK 92 million. Next page, please. On this slide, you can see our portfolio split per operational model measured in a number of rooms. As you can see, 36% are fully variable from first unit of rent or revenue, 58% are fully variable only above the minimum guarantee level, and 7% is fixed. Next page, please. In our revenue-based leases with minimum guaranteed rent, the rent is variable but can't fall below a certain minimal level. For variable rent to materialize, the accumulated total rent must exceed the accumulated minimum level during a certain period. This is normally a calendar year. While it offers protection in a weak market, it can also limit Pandox revenue growth in the first phase of a recovery that starts from very low levels. The occupancy rates required for variable rent to materialize in Pandox revenue-based leases with a minimum rent differ between markets. This is due to market practice, commercial considerations, and also contract age. Generally, the minimum level is lower in the Nordic Region. At the end of this presentation, you can find more information about this facility. Next page, please. In the first quarter, Pandox valued the property portfolio according to the same method and same model we used since the IPO 2015. Values have been adjusted downward due to lower anticipated cash flows, mainly as a result of COVID-19. Yields are again largely unchanged due to still inconclusive transaction evidence. As we learn more about the effects of COVID-19 crisis, we expect to be able to estimate both yields and cash flows with greater precision. Our target is to have 100% of the property portfolio externally valued each year as a reference point. Currently, approximately 50% of the properties have been externally valued during the last past 12 months. External valuations exhibit large dispersions both within and between markets. External valuations are on average some 5% below Pandox internal valuations. The valuation difference is small in the Nordics and larger outside the Nordics. In the first quarter, total unrealized changes in value amounted to a negative SEK 344 million, of which a negative SEK 351 million for investment properties and a positive SEK 7 million for operating properties. Please note that according to IFRS, unrealized changes in value for operating properties are only reported for information purpose, but is included in the EPRA NAV calculation. End of period, the average valuation yield for investment properties was 5.46%, and for operating properties it was 6.38%. Next page, please. Page 10. On this slide, we can see the value change of our portfolio per quarter, as well as accumulated value change from the start of the pandemic in Q1 2020. For the total portfolio, the accumulated negative value change over this period amounts to negative 4.9%. Our approach to property valuation is fact-based and rests on a combination of external and internal factors and considerations. As said, we see high correlation between restrictions and demand in the hotel market. When restrictions go up, demand goes down, and vice versa. We saw it in Europe during last summer, and we have seen it recently in major hotel markets outside Europe, such as the U.S. When restrictions go down, demand go up driven by domestic travelers, which benefits hotels with domestic and regional demand exposure, just like Pandox portfolio. Furthermore, transactions relevant for Pandox indicate resilient valuations. The jury's still out how the world will look like after the pandemic, of course. So far, demand is clearly linked to restrictions, not change of behavior. In addition, we have a well-developed bottom-up approach to our valuations. We know our hotel properties better than anyone else. We have individual business plans for each and every property, and we have a detailed understanding of the specific revenue drivers for each asset. Yes, the pandemic has a negative short-term effect on the cash flows in the hotel properties, but we request an assumption of a negative long-term yield effect. Next page, please. Page 11. Again, let's take a quick look at our EPRA NAV and financial position. End of period, EPRA NAV per share amounted to a rounded SEK 170. This corresponds to a decrease of approximately 9% on annualized basis. Loan to value amounted to 49.5%. Cash and cash equivalents and long-term unutilized credit facilities amounted to approximately SEK 4.7 billion. Credit facilities maturing in less than one year amount to approximately SEK 5.5 billion, of which approximately SEK 3.8 will mature in December 2021. Pandox has a positive and close dialogue with all of its lenders on new financing, refinancing, as well as adjustment of terms and covenants in existing credit agreements with consideration to COVID-19. In the first quarter, lenders have given waivers in individual credit agreements. Next page, please. With that, I hand back to Anders again. Thank you very much, Liia. Let's move over to market presentation. We have chosen three areas to create more insight for 2021. The first is a recap and an update on market in Pandox business areas. The second part will be take a look at market ahead of Europe, what sort of pattern do we see? Finally, guiding for markets and effects for Pandox. Let's start on the three focus areas, which we have had since the pandemic started. We call it the working methodology, respond, restart, and reinvent. Respond is how we manage this acute phase of the crisis, where we basically change business model over the weekend from an active investor and operate in large international operations to secure liquidity and daily contact with banks and our partners. We are still in that phase, but we have been spending more and more time on restart, which is the plan for recovery and what sort of action do we need to take to be ready. Reinvent what's next for our industry. Next page, please. To get back to full performance, if you start there, we think we need different development levels. It, of course, start with that the country and cities open up and activity starts. After that, the hotel will open, and then we will see domestic leisure return. After that, we will see domestic business return. Then will come international meetings and group return. That is basically how the market also had reacted over this recovery phase in market who is ahead of Europe or as it was in Europe over summer period. Next page, please. A quick recap. Everybody start from the same point. As you remember, COVID-19 arrived in Northern Europe in March. Society closed down. Economic activity decreased. When restriction was lifted in June and July, recovery started across Europe with domestic leisure as main driver. After the holiday period, the local business travel returned in Q4 looked quite promising. In October, new restrictions was imposed. Demand decreased substantially across all segments. This low business environment are continuing to Q1 2021. We are waiting for this vaccine program will gain confidence again. Next page, please. I'm now at page number 15. If you look at in numbers, you in Nordic regional markets. We saw a strong start in 2020, collapse in March, a good recovery over summer, a good platform in September before these new restrictions was implemented. Since then, it has been a very slow market. Next page, please. I am page number 16, where you can see now rolling seven days trend in the Nordic regionals. A small uplift but very slow still. Everything is linked to that restrictions has not easier yet. If we move over to Stockholm, you also see a strong start in the last year. The same with a substantial decrease in March. Market has been at all large city has been slower than regional and domestic markets has been. Even Stockholm, it's still weak market in Stockholm. Next page, please. I'm page number 18, looking at Germany occupancy. You see also here a good start, a collapse in March, and then we were okay after summer period. Since then, Germany is perhaps one of those countries who have had hardest restrictions. You haven't been allowed to travel and stay in hotels. Of course, they had no demand, and we could not expect anything happen in Germany before the ease of the restrictions. If you come to U.K., that is more optimistic view. You see here again, a good start in 2020. You see in March and April, things came down, and after restriction was easier in June, August. It was quite a strong regional market, which came down also when new restrictions was implemented. If you look at the next page 20, you will see that the rolling 12 start to move. I know it is just a week, but I see ahead of this, and I see business on the book gradually coming up. With very small change or positive of restrictions was easier, the market has, in regional market, start to come down. It all start to lift up again, and you see that the market for the summer is start to looking very promising. U.K. is the one who is leading the Europe train back in recovery. If we then just quick in London, you see as in Stockholm, large markets are weak and that will take longer time for these sort of markets to come back compared to regional and domestic markets. I'm now at page number 22. I'm now moving over for market who is ahead of Europe, try to see what can we see and what sort of pattern is there. You can see that's the same pattern everywhere. Strong recovery. The driver is domestic demand. There's a strong correlation between restrictions and demand in these markets. Let's start with China. China is first out in the recovery phase, and the driver is domestic leisure and then also domestic business had opened up. We see an improve in meeting segment. We see also large convention are taking place in the market, very positive and very interesting. Large city like Shanghai and Beijing are start to moving. That is the first sign since the pandemic started that large markets start to increase the demand. They coming now very in a strong speed up to close to 2019 years level very soon. That is of course very promising also for Europe that you can see that the first market large market are also coming back. They're one who is the first in line. Super interesting. Strong domestic demand trend compensates for lack of international travelers. Something we have talked about a lot in Pandox, that we believe that the domestic market will be stronger than ever, and the driver for this recovery will be domestic demand. If you look at the number in page 24, you can see since the restriction was easier in February, March last year, there had been a strong growth in market. You can see in September, October, November, they were more or less up to 2019 year's level in occupancy. You see also now a strong underlying trend. The decrease in January, February was temporary restriction was implemented due to Chinese New Year Eve. As many of you know, it's a mega market with 100 million people traveling back to the small cities where they came from, and they don't want to spread the virus. They have a temporary restrictions there. When that was easier, the market came back immediately. You see a strong business on the books in China. This is super promising. If you go over to U.S., that is the runner-up market at the moment. A very successful vaccination rollout had led to travel confidence. Also here you see that demand is driving by domestic leisure and local business. These two segments are fully back in U.S. as well. You see an early sign of meeting and event, however, still in low levels. We have tried to calculate it. We think the market on these two segment are around 20% of 2019 year's level. Despite of that, the occupancy is around 80% of 2019 year's level, which of course is sensational because low meeting demand, low event activity. As said, no international demand and large corporations hasn't start to travel yet. U.S. are really coming very strong. Again, as I said, domestic leisure and local business are fully back in these large hotel markets. In numbers in the page 26, you see in U.S. has been a strong start, then it came down in March and April, promising summer, now it's back in 55% occupancy again. They are in one or two quarter, they are probably back in 2019's level in terms of occupancy. You need to gain rate, of course, that will coming with the large 25 big cities will start to come back with the same trend as Beijing and Shanghai that we waiting for. Page 27, go back to full performance. Now are U.S. and China on level four. I will say China are very much on the way up to level five. In Europe after the summer, we were at number three and four, and it's likely that Europe will come back to number three and four quite immediately here when restrictions were easier. Some sort of outlook and of course again, and I very emphasize this, that everything depends on the restrictions. That is out of our control. Given this, that the recovery, the restrictions will easier in the same rate as in U.S., we are about a quarter behind U.S. or probably little more. That means the recovery will start in Q2 this year. We are already in Q2 and the one who will take the train there is U.K. and then hopefully the summer will be strong. In autumn, after the summer, the market will establish around level four, which are something around at least 50% occupancy. That is supported by domestic leisure and local regional business. Of course, Pandox has an attractive position here with 80% of rooms in domestic and regional markets. What does this mean for Pandox? Yeah, the contract structure gives different revenue exposure, as Liia was into before, this is just a repeat of what had already been said. Full and immediate impact coming from operator activities and revenue base lease agreement without a minimum level. That is representing 36% of the company's number of room stock. You have a gradual impact from market recovery, it's representing 64% that the revenue-based leases with minimum guarantee rent. To give you some guidelines here, given the hotel market weak start of the year and the signing of the agreement where we are strong protection downside, and only limited variable revenue is expected in lease with minimum guarantee rent in 2021. Of course, it's very good for our partner if market will be stronger, and they will coming back to a positive cash position. Before I hand over to Robin, I would also like to jump on a very interesting area, transactions, which we have discussed here before. Transactions market had gradually open. Over this quarter, there had been done 15 major single acquisitions who is relevant for Pandox to follow. Of course, we doing more acquisitions or transactions, but 15 of them are relevant to us. The seller operators who sell because they need to have to increase or strengthen their financial position. Very strong interest from buyer. Far, the acquisitions confirm Pandox valuations. We don't see any distressed prices, and we don't see any distressed asset as we speak. It might happen further here, but not today. A few examples, large hotel in Stockholm was sold by approximately EUR 320,000 per room. That is in line with or above what we have in our books. In Copenhagen, a sensational high price, EUR 520,000 per room, which is very much above our valuations. You have one in Berlin, a very good hotel, I will say, EUR 170 million per room. It's fantastic hotel, and this is also in line with what we have with our hotel in Berlin. You have two hotels in Munich in the line what we have, and you have one in Dublin, and that price is above what we have in our books. So far, high prices, no distress, and what they complete is confirming Pandox valuations. With that, I hand over to Robin Rossmann. Thank you very much, and welcome, Robin. Thank you, Anders. Great to be here. Going on to slide 32 and agenda. This agenda is basically exactly what we were saying in January this year. Q1 has very much played out as we expected, certainly in Europe, where we knew it was going to be a tough quarter. That's certainly what it was. When we look at what we're seeing and expecting for the rest of the year and beyond, if I'm honest, not much has changed from what we last shared three months ago. What we do have is some more data, some more trends that help either validate or course correct some of the things that we've been saying. Just talking through that briefly, and I'll go through some of these quite quickly, as I'm sure you've seen many of them before, and I'll just really focus on the ones that I think are most pertinent. If we go on to slide 34, something you've all seen, or hope you've seen before, indexing occupancy across the world back to 2019 levels. Really, the things I'd point out here that are new is some really positive trends over the last three months. In China, which has bounced back from the dip that they had back to now about 80% of 2019 levels. Perhaps more impressively, the U.S., right and steadily recovering to about 80% of 2019 levels. The Middle East after peaking quite significantly over the December, January period have dipped back as restrictions on international travel have been necessitated by the recent wave of COVID-19 cases we're seeing across the world. Certainly, those three regions showing us some strong recovery patterns to 60%-80% of 2019 occupancy levels. Whereas, as we all know, in Europe, restrictions mean that occupancies are now very low, about 20% of what we'd normally have at this time of year. One last thing on this page that I'll reference, and if you can remember for later on, it is the China line. What I'll just pull out there is if you go back and look at last year when China dipped down, its recovery started in Q2 2020 from a very low base, and you could see it steadily climbed at that sort of 45-degree angle up to a point in mid-July where it was 60% of 2019 occupancies, and then it continued to climb thereafter. By Q4, was actually at 90%, 95% of 2019 occupancy levels. Then it dipped down again after that, and the reason for the dip down is a lot of that spark up was pent-up demand, which was released, created a spark, and then it dipped down, and we saw that sort of plateau where international, or the lack of international travel, were restricting some markets. As Anders mentioned, the recent number of cases and Chinese New Year has meant a dip down, but it recovered again quite quickly. Just keep that in the back of your mind. From starting a recovery in Q2 was pretty much up to 90% or more in Q4. I think that'll be relevant for Europe. On to slide 35, just looking at average rates. This one's always been a surprise to me. Certainly for the Middle East and for China, where you can see that average rates indexed to 2019 are pretty much back at 2019 levels. I personally had expected that they would be sitting more at around the 80% mark, kind of where the rest of the world is, and Europe is sitting a bit lower at around about 70%. What that does say is rate has the potential to recover maybe far faster than we might otherwise have thought, given those markets are still only at 80% of 2019 occupancy levels. Some positive trends there in terms of the rate at which rate can recover, even when the market isn't fully recovered from an occupancy perspective. Just very briefly on Europe. Looking at Q1 on slide 36, no surprises. The gray line occupancies well below prior year levels. Moving on to slide 37. You can see for March in particular. March was when the lockdown started last year, sort of partially. March to March this year is certainly still worse than last year in most places, except for in Italy. As we go into slide 38, there you go. That's what we call a bad data slide, because it's showing fantastic improvements year-over-year. April month-to-date in 2021 is huge growth on 2020. Just ignore the y-axis and the percentage levels, because then all the excitement is removed. Nonetheless, things are getting better, and the comparables are going to get better as we go forward. Let's just talk about Q2. On slide 40, got here just a snapshot of looking across Europe. At the beginning of February, if you looked two weeks out, how much occupancy was already on the books. In other words, how many rooms had been sold as a percentage of available rooms for the next two weeks as at the 8th of February. You can see that the numbers range from 4%-7%, so very low. How much were we picking up? In other words, over the last week, how much did we sell for the next two weeks? The answer was nothing, pretty universally. Why only two weeks? The reality is the lead time for many reservations is so short at the moment that about two weeks is all that's really robust in terms of timeframe to look at how business on the books will play out to actual. Long story short, we knew early on in Q1 that it was going to be pretty dire, and the data played out as such. When we look at business on the books now on April 19th, on slide 41, you can see it's definitely much more positive. We're seeing occupancies in double digits, particularly in the U.K., 15%, Switzerland is 15%, and we're seeing that that is growing each week. Picking up about four percentage points each week. Much better. Still relatively low numbers, but much better. What does that mean as we go through the rest of the quarter? Well, interestingly, you'd expect U.K. to be showing much higher here than, say, Switzerland. It's not. It looks pretty similar. The reason for that is if you go onto slide 42, that certainly for the next month still, hotels are really still restricted from being fully reopened. Can't do any kind of leisure travel, and I'd still say there is a push against business travel at the moment. It's really only from the designated opening date, I think 17th of May, where things are more open for people to travel and hotels can fully open for leisure. That is where we're starting to see these certainly weekend spikes of business on the books up at 25% and beyond. The interesting thing when you look at this is usually you would expect business on the books to tail down from the left to the right-hand side of the axis. You had more business on the books today than three months in the future. Whereas what we're seeing is confidence is building as we go into the future. So positive signs there. What about the U.K. versus other markets around the world? On slide 43, we can see that Ireland, even though there is no definitive planned reopening date, there is optimism that's coming back and an expectation that by the beginning of June things will start to reopen and people are starting to book for that. We're seeing it ramp up and get pretty close. Obviously, they also had the hope of the Euros being hosted, or some of the Euro games being hosted there. That's unfortunately now been canceled. It'll be interesting to see how much of an impact that has on business on the books. I suspect not that much, to be honest, because those are all Saturday peaks going through into the future. On slide 44 is where it gets, I think quite interesting to see the difference between the U.K., France, Belgium, and Italy, which really can be put down to the vaccination gap between the different countries. It shows really, I think, good cause for hope that as soon as cases are down, as soon as there's more certainty around the ability to travel, that there's no reason why France, Belgium, and Italy and other countries in Europe wouldn't bounce back quite quickly to the levels of business on books that we're seeing in the U.K. That is really all underpinned by high levels of vaccination and certainty over reopening dates. Slide 45 shows that certainly Switzerland and the Netherlands doing a bit better than France, Belgium, and Italy, but still quite well below the U.K. business on the book. What do those numbers actually mean? Going up to slide 46, what can we take away from looking at future business on the book that shows business at this level? It is really difficult to make any definitive conclusions at the moment because lead times to actual booking between booking and people staying are still very low, as I said, mostly within two weeks of stay, and we're outside that window. What we can tell in slide 46, this shows business on the books forward into the future, from when the announcement took place that hotels would reopen to where we are now on the 19th of April. Really the key takeaway is that as you move forward, the green line gets darker and the darker green lines are always above the lighter green line. Every week, hotels are picking up more business into the future. We're not seeing cancellations. We're seeing it grow, and we're seeing that growth accelerate. If you look in recent weeks, on those Saturday peaks, the U.K. market as a whole is picking up three to five percentage points of occupancy every week, and that's likely to accelerate. Looking at this data just and assessing it from a high level, you would say that this should translate to occupancies of over 50% on the weekends, really from the moment that the market reopens, and that should continue to improve as we go through July and into the summer. Slide 47 shows regional U.K. Similar story, just a bit higher percentages versus London on slide 48, which is tracking about five percentage points behind the U.K. average, which is actually a bit more robust than I had expected. I think that speaks to what Anders mentioned earlier, and that with the lack of international travel, I think we will see some displacement where that will be replaced by domestic travel that will maybe like myself, take the opportunity to do a staycation in London, go and stay at a lovely hotel, eat at a fantastic restaurant, and feel like you're in a different world altogether. That takes me to Q3 and Q4 quite briefly, and I'll briefly do this because it's very much similar to what we've been saying before, very much similar to what Anders mentioned earlier. On slide 50, the profile of recovery will be leisure, then business, then events and groups, and that'll be blended between domestic first and then international later on. Going back to slide 51, I just wanted to bring back what I referenced earlier on, in terms of China. Clearly very different market to Europe. Nonetheless, I think a good benchmark of what is likely to happen. Again, recovery starting in Q2 and by Q4 was up to 90% plus of 2019 levels. It really did start with those Saturday weekend leisure peaks. That is what we're seeing when we look at business on the books for the U.K. at the moment. I personally see no reason why the trend across the U.K. and the rest of Europe wouldn't look a little bit like this. Although perhaps, and this is my personal view, I actually think the bounce back is likely to be stronger. Really down to pent-up demand, in the same way that if you take a bottle of champagne out of the fridge and you leave it out, getting warm, and you open it after one hour, maybe the cork goes out a little faster than you expected it to. If you take that bottle of champagne and instead of leaving it out for an hour, you leave it out for a whole year in the sun, then the moment you undo that metal wiring around the top, that cork is going to fly out and champagne is going to go everywhere. I think that is much more likely what we will see in Europe, given the extreme state of pent-up demand, certainly from a leisure perspective as I perceive around the region. On slide 52, it's no surprise that many people around the industry are expecting that in the summer we will have a strong bounce back. If we look at other verticals, we're seeing significant rate growth year-on-year for any kind of appealing leisure destination. I think we will see that come back quite strongly. We may have a tail-off like we did in China when the reliance on domestic business demand came back, but certainly continued growth in the long term. Moving to the long term, I think if you look at our forecasts, and these are just forecasts, beyond two weeks it's very difficult to really have any kind of certainty at the moment. We do expect business travel will take longer to recover. That's ultimately what will hold back full recovery of the markets to something like 2024 from a RevPAR perspective. Going to Q4 and on to slide 55, I think it's important to recognize that because of that pent-up demand, because of that recovery, we think things will get back to 2019 levels, from a demand perspective, pretty quickly in the sense that by Q4 2022, most will be at 90% of 2019 levels of demand. That when you look at rates and assume that won't be quite back yet on slide 56, that RevPAR will be at the moment, we're forecasting around about 80%-90% of 2019 levels by Q4 2022. That is on a quarterly basis. When you go to annualized and you assume that the final 10% of recovery will take a bit longer, that is why you see on an annualized basis, us forecasting full recovery out more towards 2024, 2025. However, very much these are caveated by, as I said before, it's really quite hard to call. A lot does depend on the shape of the economic recovery, and how much longer there will be meaningful restrictions on international travel. With that, I will stop and hand back to Anders. Thank you very much, Robin, for this run through. Now operator, we are ready for questions. Thank you, sir. If you wish to ask a question over the phone, please press star and one on your telephone, and please wait for your name to be announced. Should you wish to cancel your request, you may press the hash key. We now have your first question from the line of Simen Mortensen of DNB. Your line is now open. Hi, gents. Do you hear me? We hear you. Good. Thank you. I have a few questions. Four, actually. To start off, in terms of transactions in the market, Liia said there had been no evidence of transactions when it comes to the yields and valuation of the stocks, but clearly later on, Anders, you showed us some well-known transactions in the market. Could you please just clarify on what you actually meant in that association, because you communicated differently, both of you. What? Liia, when she showed the yields and the transactions, she said that there was not that liquid market, not many transactions being done. We saw on the Grand Hôtel in Stockholm has been sold, the Choice Hotels in Copenhagen. Okay, you mean that we should actually decrease our yields? Well, I think we're not in that position yet. I think you have said that our yields are resilient, and I think Anders confirmed that the transactions that have been done have, if anything, been more aggressive than anything we've seen before. Yeah. Well, we won't, for the time being, decrease our yields. Interesting view, Simen. That's why I didn't understood your question, but I understood it now. Yeah. Well, very promising levels, if I may say so. We will see if that continue. Okay. Thank you. The other one is that Liia said there had been some waivers on individual loan agreements. Is there anything you would clarify on that and if there are any implications of that? Well, nothing different from the previous year. 2021, of course, started the same way as 2020. There are individuals given in some credit facilities, but we have all the waivers in place. Okay. My perhaps most concerning question this time around is the deferred rent payments in the quarter. You haven't touched upon this, but when we go into the balance sheet now, we see it's SEK 566 million in deferred rent payments. Some of them are long-term, some of them are short-term. Yeah. Compare just the gain in Q1, I can easily see it's SEK 127 million more now in Q1 than it was at the beginning of the quarter. This is a sum that, based on my calculations, corresponds to roughly actually 24% of the net rent in the operator activities paid in Q1. Does that actually mean that 24% of the rents from the operators aren't being paid this quarter? Or could you please elaborate a bit on these figures? Thank you. Well, the SEK 566, this is accumulated delayed payment terms, and this is about SEK 120 and more than in Q4. This is, of course, an effect of both that in the end of 2020, we entered into some agreements which, for example, there was a postponement, especially in Germany, where 50% of the rents paid up also for Q1 and Q2 will be delayed over a period of up to a year or more. I said before that I didn't expect this amount to be more than SEK 500. Now it's obviously SEK 566. It will unfortunately be maybe SEK 1,500 more. This is a consequence of the fact that we haven't seen the recovery as we expected as quickly. However, these are, again, with operators. It's a few operators where we have bank guarantees and corporate guarantees. This is a liquidity help we are giving them. We don't give any reductions in rent. I've said it 100 times, and I'm saying it 100 times more. We don't see this as any danger, but the opposite. This is the way for the operators to manage their liquidity. Yeah, this sums actually, it mostly refers then to the operator activities and that sums it up. This is not the operating activity. No, not operating. Yeah, I'm sorry. To the operators, I'm sorry. To external operators. Yeah. My fault. It is more than 20% of the rents, which is including in P&L every quarter so far, right? Well, it is also sometimes agreements. The increase is not only related to the Q1, but it is also how the payments have been for Q4 2020. That comes to another part of the questions you touched upon, the regional levels. Is this mostly in Germany? Is it in the U.K. or is it in the Nordics? You have three large operators, and pretty much everyone knows who they are. Well, it's outside the Nordics. This is again, typically a consequence that the lockdown has been much worse, more severe outside the Nordics. Also that we entered into agreements, the more recently signed agreements outside the Nordics, where the minimum rent is maybe 90% of the turnover rent, which is quite hard because, again, we did quite a lot of transactions in 2017, 2018, 2019. Of course, this is with operators outside the Nordic. In the Nordic, these are old agreements, which again, it's on a much lower level, which should not be a problem for the operators to pay. Yeah. Is there any cost for operators to delay payments, or is it interest rate free, or how do you solve that? Well, typically, there may be some interest, but on a very low interest. It's not one standard, but if there's an interest, sometimes interest-free, but it's on a very low interest. It's not like normal delayed payment interest terms. Exactly. Again, it's quite individual. Yeah. Yeah. Okay. My last question is a bit more on the positive note. The U.K. vaccination has been quite leading and the most going the farthest of the markets you covered or are invested in. How do you see the bookings are transcending there versus the rest of the markets you are? How much, because you've spoken about the performance of RevPAR so far, but I assume you still have overviews of booking into Q2. What you can tell us how much is actually the vaccination driving bookings as you can see? There is a strong correlation between a successful vaccination program which lead to easier restrictions and demand growth. That is the strongest processes that you can find in the industry today. U.K. had been probably the most successful in terms of vaccination program. You see that now that the confidence is coming back, even if the restrictions are still quite hard. They start to book over summer. They already did that in Q4 last year, that continue. I believe today, it's tough to get a hotel room in Brighton for July, August, already. I know all housing in southern or in resort destinations in U.K. is also very high or very strong trend in terms of booking. What we now see for the last couple of weeks is also some sort of improvements for Q2, there we wait for more data before we can say that the trend are there. As it looks now, U.K. will be the one, as I've said before, who will take lead of the recovery in Europe. That is based on restriction. They will ease your restriction first. Sorry, Simen, what did you say? No, have you seen the same bookings? Because last year also, this summer was very good in the Nordics. Yeah. People staying at home. Are the bookings, you think it was full in Brighton, et cetera, in the U.K.? Are you seeing the same in the Nordics? No, we don't. We see some sort of positive movement over summer, but that hasn't really start yet in the Nordic. You know Norway are still very much in lockdown, and even in Finland. It had to be more restrictions had to ease here before you will also see it in Nordic. Again, if this comes, and expect it to come here in Q2, then immediately you will see it. In all resort cities, you will see also in domestic and regional destinations, Scandinavia will take a lead. Our forecast is that the summer will be stronger this year compared to last year, basically because it will start earlier. Thank you for taking my questions, and I hope to meet you guys soon with. You remember that last year it was even above 2019 year's level in Kristiansand and in Lillehammer. You see that Norway was the best market in Europe in July last year. Okay. Thank you for taking all my questions, both of you, and hope to meet you soon. Thank you. Thank you. Bye. Thank you. Your next question comes from the line of Fredrik Ståhl of Carnegie. Your line is now open. Good morning. Yes, a couple of questions. Starting off, you made some remarks and clarifications in the quarterly report regarding the weak start of the year and the design of the rental agreements that will have an adverse impact on revenue recognition during the coming quarters. Why did you feel obliged to mention that? Did you look at estimates and felt like investors did not understand the mix? What was the rationale behind mentioning that? Well, the major reason was that we want to give you good guidelines how we see the market is coming. Of course, when we on one hand have a positive view about the market outcome, of course, on the other hand, when we have a mechanism in our lease agreement, we think we should tell you all, so it not come as a surprise. Yes, I understand. The start of the year has been tougher than last year. On the other hand, the outlook for the second quarter looks better, and those two factors are moving in opposite directions. I would imagine that you still expect a gradual recovery year-on-year on top line for Pandox. I'm thinking about the property management part now. Coming back for having to come above the minimum rent in market outside Europe with the start of year have been very slow for company in Germany. You need a very good Q3 and Q4. We don't want to give you that expectations. Yeah, that's clear. You mentioned behavioral changes. Of course, they are still out there. Who knows how it will look like. In your internal model that you use for your property valuation, have you assumed any behavioral changes long term, or is this purely driven by the cash flow impact during 2020 and the start of 2021? We don't see any consumer trends. It's people who normally have not had so much experience about hotel business to talk about it. When that had been in all crisis, it is my fifth crisis. All we talk about big change in the market, and you will never come back, and Pandox can close their hotel and no business travelers will be there. Yeah, this maybe will happen this time, but we don't see it. That's why we don't also take any other views in our valuations that we have done before. Let's wait and see. What we see in market head of Europe is that we see very small change in consumer behavior. What we see is that restriction holding back demand. Let's wait for the restriction will ease here and see what's coming up. Then one question on projects. Generally in the market, of course, the crisis leads to lower new supply. How are you looking at the supply situation across Europe? I know it's very much a city-by-city nature. Generally, are you seeing that new projects are put on hold and that could have a positive impact on situation two years out or something like that? I would say most of the hotels who was published will be built, sad to be said, because they was already in contract. You don't see any new hotel project development coming up, of course. We need recovery phase in some markets like Copenhagen will have it tougher than other because of new supply. From, let's say, 2023 or something like that, the most of the new capacity has coming in, we have to take it from there. It is always the same. A new player coming into the market, when the market is peaking out, the new supply coming in and make things even worse. Hopefully, we can buy a few of those hotels. Yeah, that's the usual economical cycle when it comes to construction real estate. Finally on the follow-up on the deferred rent that you mentioned. It increased somewhat in the first quarter. Liia, how do you perceive that line going forward Q2, Q3? Do you expect it to be at a similar level or continue upwards? I think it will be on the similar or slightly above in Q2 due to the fact that we are in Q2 now and the restrictions are hitting hard. We have split this between the long term and short term, so you can see that nothing was SEK 270, which is long term, and the rest is short term, i.e., within 12 months. I do expect it to peak maybe at another SEK 650 million or so, and then diminish unless there is an eighth or 10th wave of this horrific pandemic. I hope not. Thank you for taking my questions. Thank you. Thank you. Thank you. Your last question at this time comes from the line of Stefan Andersson of SEB. Your line is now open. Thank you. Two questions from me. First, on the valuation side, a bit curious there where, looking at external values, seems like you are closer to them this quarter, and it's a 12 months rolling number, I understand, than in the last quarter. In Q4, you also had Q1 valuations included. I think the external ones were 6% below then, and now it's 5%. My question is, first, if you don't look at the long-term development of the 12 months rolling, but just look from Q4 to Q1 now, have you seen the external values becoming more positive? Is this just an effect of your negative revaluations in the quarter? Connected to this, I think last quarter, in the Nordics, you were agreeing, and this quarter you say that you have the external values a little bit lower. My question is then also, has there been a change in tone for some reason in the Nordics? Why such a big difference between other regions? Okay. Yeah. Let me start. Well, when it comes to the undertone from the external valuations, there are practical limitations to doing a lot of evaluations. Of course, practically, every bad quarter you leave means that it's getting better and better. My personal view is that valuators are cautious people, and that they may be getting more confidence and looking at more how's it going. We're not all going to die. They take a more realistic long-term view on yields, long-term yields, et cetera, especially when you see other property assets where yields go down. There is no reason why there should be such a yield gap between hotels and other property assets. When it comes to between the regions, I think still, maybe I wasn't clear. I think on average it's 5%. If anything, the Nordics are in line with what we see, and sometimes even more positive. We do have external valuations where the value is higher than what we have. Especially when you look at Germany and maybe U.K., and where we have done some external valuations, they are initially a larger gap than the Nordics still, which is, my personal view, a reflection of the uncertainties of the transaction market, the lockdowns, and all of the bad things I was going to say. Okay. Thank you. The second question relates more philosophical, but see what you can answer on the contract side. When speaking to some of your operators, given the situation, of course, everyone is trying to improve their situation also long term. My impression with talking to some of them is that it's not helpful to just get a lower price, which could be one discussion. It's more a focus on a bigger flexibility, meaning that you could leave some of the upside to the property owner and get some more help. On the other side, of course, you are already in that space in the Nordics. My question is really, do you think that your contracts in the Nordics could become even more flexible than they are today? The second question, do you think that your model, which is not as common outside of the Nordic, could gain traction, that you could actually have some more valuable contracts also in other parts? Well, Stefan, I think the model we have is what people talk about that they would like to achieve, a revenue-based model where you have a minimum level, you invest together, you have frequently a dialogue about how to improve the hotel. That is rare in our industry. It's normal property company who don't have any specific understanding or lack of understanding hotel business, and you want to have so much of fixed as possible. I think things are moving in our direction. We see that what we are doing today is where most of the operator want to go, so we don't see any big things there. Of course, Investment, as we speak, is something that some of the operator has not liquidity to do, and then we can support them. That, I will say, have two positive effect. One is that we are ready when things are coming back, and the other thing is that will strengthen our partnership. That is only positive. Our knowledge in the hotel industry and the model we have to be an active investor have never worked better than it works at the moment. On that note, could you see a situation where you take more of the upside in a strong market and then give away even more in the downside when that happens? Are you very happy with where you are? Let's see what's coming up in discussions when new contract will be signed. We have nothing in 2021. We're coming in portfolio with Scandic in 2022, of course, I would say our position is that we want to have more guarantees. We want to have higher minimum level, they want to have opposite. That is not something very special for this crisis, has always been. Strong partners normally come to agreement because we know it's better to cooperate than fight. Sorry for having a final follow-up on that. Would there be limitation from your financers, banks and so, when it comes to having more flexibility and lower guarantees? Well, typically not. If we think we are doing a good deal, then the bank is actually confident that we are securing their interest as well. Okay. Thank you very much. Thank you. Well, ladies and gentlemen, thank you very much. Thank you very much, Robin. Again, remember that Robin is an independent researcher and very professional one, but very independent. What he say is nothing that we talk about before. Thank you for listening to us, and hope to meet you in mid of July with a stronger market. What I can promise you is that Q2 will be better this year compared to last year. Thank you very much, and goodbye, and have a good day.