Welcome to SBB Q3 earnings call 2025. For the first part of the conference call, the participants will be in listen-only mode. During the questions-and-answers session, participants are able to ask questions by dialing pound key-five on their telephone keypad. Now, I will hand the conference over to Treasury Director Helena Lindahl. Please go ahead. Good morning, everyone, and a warm welcome to our Q3 presentation. Here with me this morning, I have our CEO, Leiv Synnes, who will present the Q3 result and also give you a strategy update. Daniel Tellberg, our Finance Director, will answer questions on the report and run through the numbers. After the session, we will host a live Q&A session. Please prepare your questions, and we will be ready to take them after the presentation. With that said, I will hand over to Leiv. Thank you, Helena. SBB is four segments: community, residential, education, and development. In total, the property exposure is SEK 94 billion. The assets have low downside risk. Instead, there is a potential for higher revenues and also for more investments. We are creating an efficient and focused platform. We have a very good market position. If you look on the highlights for the period, the property exposure increases to SEK 94 billion, which is good. That is mainly through subsidiary Sveaf astigheter and the associated companies Nordicus and PPI. We see a good development in rental income, + 1.6%. Also a growth in net operating income, + 2.9%. We are happy to see that we are reducing the costs. The central admin cost is down 22%. We think that the central admin costs have a potential to further decrease in the upcoming quarters. We have an increased activity in leasing, and we start to sign new leases. One lease that we have signed is with the City of Stockholm for a 15-year lease. I think we will be able to announce more of these new leases to the market within short. We continue to develop our brand names in the SBB Group. We are benefiting from the stronger and stronger ability to raise capital in those entities. It is good that Nordicus, Public Property Invest, and Sveaf astigheter all have investment grades. If you take a closer look on the community sector, it is SEK 40 billion of assets. 50% of that is consolidated, and the rest is through joint ventures and associated companies, where one big associated company is Public Property Invest. In the segment, elderly care is the largest subsector. If we move over to residentials, the property exposure is close to SEK 30 billion. Sveaf astigheter is the core asset in the sector, and our part of that company has a property value of close to SEK 19 billion. Sveafastigheter was listed on Nasdaq First North and also upgraded to the Stockholm main list in June this year and has also received an investment grade rating from Fitch. We believe that Sveafastigheter will be able to show high growth in revenues and also lower costs. It is a large vehicle, and I think it will be more effective than the market as a whole. In the upcoming years, we will be able to show it. That is my expectation. Education, the core assets for us in education is Nordicus, and our part of that is we have a property exposure of SEK 20 billion. In total, the company has assets for SEK 40 billion. We hold close to 50% of the shares in Nordicus, a company that we co-own with Brookfield. We see a strong development in Nordicus: rental growth, net operating income growth, and also an ability to act on the transaction market for properties and grow. We believe that Nordicus will be a growing company with higher and higher dividend stream to SBB. We have moved some properties with great potential into a subsegment called development, where we have put increased focus on leasing activities and also investment activities. We are in the final time to sign new leases in development for the properties here. I also think that we'll be able to announce to the market positive development of the assets in sign of lower vacancy and higher net operating income and positive re-evaluation through h igher rental income and lower vacancy. I am very positive to the development in this sector at the moment. We limit the segment to 10% of the company balance sheet, and we have a minimum return of equity of 15% for all the investments we have in development. I believe that we are in good shape when it comes to the strategy. We have done a lot. The rest of the plan we have in strategy, we will be able to work in tailwind. The market is strong enough, and it is easier for us to execute on the strategy that we have in the company. We see strong growth and positive development in the platforms that we are creating. We are starting to see cost reduction in the group, and we believe that we will be able to continue with this positive trend. We have a very strong confidence in the core business. Residential is a very strong segment, and also public properties is safe and has the ability to create higher rental income in the future. We have some areas that we will put more focus on going forward. We are addressing the joint ventures and the financing cost of those. We think that we will be able to cut the financing cost in the joint ventures that we have in the upcoming year. We also think that we will be able to make SBB easier to understand and reduce the number of joint ventures. We will see higher and higher cost control in the SBB Group. Through that, more and more of the assets are in effective vehicles, and that will lead to higher cash flow from the property management. Thank you. Thank you, Leif. Deep diving into the P&L, we've had a solid like-for-like development for the year. We see a strong continuous growth in the residential revenues, giving a total revenue increase of 1.6% on a like-for-like basis. At the same time, we're closely monitoring our property costs with lower maintenance and operating costs compared to 2024. In the last years, we made some wise energy investments, clearly showing signs of paying off. All in all, we had a 2.9% net operating income increase on a like-for-like basis. Looking at administration costs, we have several strategic initiatives aiming for strengthening internal functions, reducing consultant dependency, and improving operational efficiency. In total, administration costs are down by 22% from last year. Continuing on this road is a key priority for both SBB and Sveafastigheter. Changes in property values amount to minus SEK 500 million for the year. This has been impacted by some individual projects and sales during the year. Looking at the quarter, value changes are clearly leveling off and flattening out for both consolidated properties as well as joint venture properties. In total, we're happy to see a net profit for the period of SEK 1.6 billion. With that said, Helena, we'll take it from a liquidity standpoint. Yes, the liquidity is improving. The total liquidity for the SBB Group on a consolidated basis is a tad over SEK 4 billion, with unutilized credit facilities of SEK 2.1 billion. On a standalone basis for only SBB, we have a liquidity position of SEK 1.5 billion and an unutilized credit facility of SEK 500 million. We also have the availability of liquidity in the form of the listed shares that we own, such as Public Property Invest and Sveafastigheter, and that is in total SEK 7.5 billion. As you all know, we have worked tremendously hard to strengthen the company's financial stability. We are improving it quarter by quarter. We have an ICR ratio of 2.4 for this period and a loan-to-value of 59%. We still enjoy a very attractive long-term funding position. We have an average maturity of 2.5 years, and also we enjoy the l ow cost of funding of the average interest rate of 2.4%. I would also like to highlight that 78% of the debt stack matures later than 2026, which gives us plenty of room to further improve the financial stability of the firm. With that said, I leave the word to Leif to summarize the quarter. Yes, in SBB, we are creating subsidiaries and associated companies that are able to grow and benefit from the strong market position that they have. Nordicus is the largest company in educational properties. Sveafastigheter is the largest listed pure residential company in Sweden, and PPI is a growing company in Norway. All of these companies, I think, will be able to benefit from the market position and the access to capital and will grow in the future. These companies will also have effective cost control, and also SBB as a whole will reduce costs, and in the upcoming years, we will show the market that we will be a low-cost company. I am very confident of the core business in SBB. We have very resilient assets. Instead, we have potential in revenue growth in both public infrastructure properties and residential properties. I am very confident. Quarter by quarter, w e increased access to capital in SBB, but also through the strong subsidiaries and the associated companies that we create. Overall, I'm very proud of the development in SBB and confident about the future. Thank you, Leif. With that said, we are happy to take your question in the live Q&A session. If you wish to ask a question, please dial pound key five on your telephone keypad to enter the queue. The next question comes from Mary Pollock from CreditSights. Please go ahead. Good morning. Thank you for taking the question. I was wondering if you could provide an update on your SEK 10 billion of disposals. How many have you completed, and what is your plan for the remaining? I also wanted to ask on how you're thinking about refinancing the 2026 year bond. Thanks. Good questions. We have sold SEK 1 billion of residential assets, I think, towards the end of Q2. The rest of the residential properties outside Sveafastigheter is on the investment portfolio. We think that we will be able to sell residential assets outside Sveafastigheter if needed. I also believe that the market will pick up quarter by quarter. The first half of next year will be stronger than this year. I am very confident that we will be able to divest those assets to a good price if we choose to go that path. We also know that we can either get back the money we have lent to associated companies or pledge that assets and receive funds. At the moment, we are very confident of being able to repay the bonds that matures in 2026. We are not o verly worried about the refinancing risk. Are you still considering tapping the market to extend the maturity? Yes, that's an option we have. I think we have met the investors during the last quarters. We see that some of the larger bond investors in SBB are happy with the development and could add to the exposure if we come to the market. It is clearly an option for us. Thank you. The next question comes from Othman El Iraki from Fidelity International. Please go ahead. Yes, hi. Actually, my question was covered by Mary just before, but maybe just a follow-up on this in terms of the different levels you have for your disposal. I understand the residential outside of Sveafastigheter, but I'd like to better understand how you can improve your liquidity, especially through your joint ventures. In that, are you looking to reduce, for example, your stake in PPI or Nordicus? Is that an option for you at the moment or not really? Good question. We, of course, have the options. At the moment, we do not have the intention to do so. We have created companies that are attractive for other investors. I think if we speak about Nordicus and we discuss it with Brookfield, I think we can come to an agreement if we go that path. Also, clearly, Sveafastigheter and Public Property Invest are listed companies, so we can also lower our stake there. What we have done the last years is to create companies that are attractive for other investors, and we think that we are able to capitalize on that if needed. However, it is not our intention to reduce our holdings in Nordicus, Sveafastigheter, or PPI at the moment. Okay. Just one follow-up on this. Is kind of unwinding any of your deals with Castellake something that is achievable sometime next year o r not really, i t's longer- term? Yeah, the transactions we have with Castellake, we have the ability to prolong them if needed. We have also the ability to find other solutions if other solutions are cheaper or better for SBB. We have also the opportunity to renegotiate the terms with Castellake, I think the market as a whole has both lower market interest at the moment, but also lower risk premium. On top of that, SBB is a much stronger company now compared to the situation where we took the initial discussions with Castellake. I think at the moment, it's very likely that we will cut the costs for funding the properties that lie in those joint ventures. Okay. Okay. Thank you very much, Leif. Thanks. That's it for me. The next question comes from Emil Ekholm from Pareto Securities. Please go ahead. Hi. Good morning. Thank you for taking my question. You touched upon it briefly, but you have on page 37 in the report a non-pledged property value of almost SEK 17.7 billion. How much of that is in Sveafastigheter? I think that we will come back to you in writing on that one so we can give you a precise number. Okay. Thank you. Also in the same table, you have pledged net assets in subsidiaries of around SEK 14.9 billion. Could you explain what that is referring to? Yeah, we can come back at that as well so you can get a precise explanation. Okay. Perfect. I think we should be around halfway through the maturity of the intercompany loan to Nordicus as of now. What is the current outstanding amount, and can we expect any repayment before the maturity in about three years? Yes. Nordicus is a company that we co-own with Brookfield. Brookfield is a very strong institution. I think it is just a matter of price if you would like to discuss the loan to Nordicus with them. Also, Nordicus itself has an investment-grade rating at the moment and is potentially able to raise similar debt themselves and repay the money to us. If we open up that discussion with Nordicus or Brookfield, I am sure that we will come to a good conclusion or agreement. Okay. How much is outstanding as of now, approximately? Yeah, I think. The outstanding amount is a little bit more than SEK 5 billion. Okay. Perfect. If there were to be any repayment before the maturity, would that entail any earlier redemption costs for you? It will not have any earlier redemption costs. Since the interest on the lending to Nordicus, the interest rate is low. We will have to take a haircut of the face value. We have done an assumption of that. We have a lower book value in SBB than the nominal value of the loan. I think it is SEK 4.3 billion, the book value. The face value is a little bit more than SEK 5 billion, as I mentioned. Okay. Okay. Thanks. Also, talking about Nordicus, you can see that the average interest rate increased from 3.71% to 4.79% quarter by quarter. What happened there? I can see that the loan amount has been lowered as well. I think in Nordicus, they calculate with, I think, they have to obtain long-term funding in Nordicus. That is one reason. The funding mainly consists of used prior placement, and the funding costs, depending on the market situation, tend to be around 1.70%-2%, depending on the timing in the market. You have a base rate. At the moment, that base rate is around 2% or 2.5%. You should expect Nordicus to have a funding cost around 4%-4.5%. If there are any changes in the interest cost or interest rate level for Nordicus, mainly since they have refinanced short-term debt, which they have with RCF, with banks, and added more USPP private funding. Yes. Okay. Yeah, because I can see that interest-bearing liabilities were down by around SEK 5 billion quarter by quarter. I guess maybe they repaid some very favorable debt, so to speak. Is that a fair assumption? You mean Nordicus? Yeah. I think in Q2, they had around SEK 23 billion in debt, a nd now they have around SEK 18 billion. Okay. I need to come back to you. I do not have the report in front of me. Mainly, they are a growing company, and they have bought more properties in Nordicus. They have added more debt, both in 2024 and also in 2025. What they also have done is they have refinanced the RCF that they have with four banks and tapped the USPP private placement market. They have taken a duration of, on average, 13 years of the new funding. Due to the longer duration, there has been a little bit of pickup in funding costs. Instead, we have received a very low risk on the financing in Nordicus. It might be that the interest costs have gone up a little bit due to taking the safety route when it comes to funding. Okay. Perfect. Thank you. Yeah, I think that was all for me. Thank you very much. The next question comes from [Filippo Tomassi] from BNPP. Please go ahead. Hi everyone. I just wanted to ask you about the community segment, as it seems like occupancy and kind of operational performance is very strong at the residential part of the portfolio, but a bit less so in community. I just wanted to understand if it is like some short-term kind of glitch or if there is something more structural going on. Yeah, it's a good question. I can explain how the market is. When it comes to residential, it's like rental negotiations with the tenant association each year. When you have high inflation, usually there is a time lag between the inflation picking up and when you get the rental increase. That is one reason why we have good rental growth in the residential, because we get compensated from the previous year's high inflation. Therefore, we have strong growth at the moment when it comes to revenues in residential and also expect to have strong rental growth in the next year. When it comes to community properties, most of the leases we have are very long-term, and they are linked to inflation, meaning if the inflation is low, we get lower income growth. That is what's happening at the moment. We enter an environment with lower inflation, which is very good and helpful from a funding perspective. When it comes to rental growth, it means that we have lower rental growth in 2025 and also in what we can see for 2026. I think also in the upcoming year, when it comes to rental growth, residential will outperform public properties. Yeah. Can you comment on the occupancy? It's been rather stable if you look on one year back. I think it's less than 1% change. If we have included the development properties, it's around 90%-91%. If you exclude the development properties, it's around 94% occupancy rate. It's a rather stable business. I don't think you should expect any large movement towards higher vacancy. It's likely that you will see a lower vacancy going forward. We see a good trend in Sveafastigheter, and they are facing lower vacancy at the moment. That is a big part of the consolidated assets. Also, since the beginning of the year, we have put more emphasis on the development properties, both in doing investments in order to attract new tenants, but also in hiring people that are actually leasing out the vacant premises. I think if you look one or two quarters ahead, you should expect a positive trend when it comes to vacancy in the public property segment. Sorry. You expect an improvement on the community segment as well? Yes. Okay. Thank you. As a reminder, if you wish to ask a question, please dial pound key five on your telephone keypad. There are no more questions at this time. I hand the conference back to the speakers for any closing comments. Yes, we see no further questions. Leif will give some concluding remarks. Thank you all for listening to this update from SBB. We are very proud of the development in SBB at the moment. I think we are very fortunate at the moment to have tailwind. I think the property market, the heat is picking up with higher pace in the transaction market and also boosted by good funding possibilities for the market as a whole. We are very confident about the rental growth in SBB. Overall, we are very positive at the moment and see strong development going forward. With that, I would like to thank you for listening.