Q4 2024 Wihlborgs Fastigheter AB Earnings Call
This call is being recorded your line is muted.
Welcome to the presentation, though they've always full year report 'twenty 'twenty four.
And now that you have come to term and a pretty active startup identified.
At the same time as we summarize 24, we have our full focus on 25 and knowing there is more to harvest in 2006.
It is special time, and all the changes and challenges around us and we must adapt and find new ways.
If we put human tragedy societies change and challenges is nothing new.
I'm always seems to be special.
And that means that well, it's new it's how well and how quickly we adapt and how fast we can find the new opportunities in everyday of change.
And if anything kind of summarized the times of the day, we claim that it's a time of action.
We have been quite successful to adopt and achieve results in challenging times, so far and that ability is the only thing we refuse to chase.
Let's go to our report and we'll start with a summary of Q4, well have a new record in our rental income for one quarter $1.059 billion nothing positive with 30 million income from property management up 23% to $452 million.
Net debt to EBITDA below 10 times.
Demand remains for good quality and good location project investment continued to get good potential for growth and as announced yesterday transaction will also contribute to growth will come back to that at the end of the presentation.
And the last point in the summer the board proposes a dividend of $3 20, Crowe not quite sure.
Results for the full year 'twenty form rental income increased by 8% to 4.174 billion and operating surplus also increased by 8% to 2.996 billion annoying if those just even.
It's been amounted to 1.781 billion and result for the period amounts to 1.706 billion corresponding to five points of the five grown up a share and write MRV has increased by 8% to $93 58 per share I guess this will pay dividends.
We have a comparison of the rental income full year 'twenty, three and full year 'twenty for indexation gives plus 180 million termination fees from the Danish portfolio like $1 million acquisition, plus 12 million property tax has increased in Denmark and that gives extra income of $15 million.
We have the effect minus five supplement or billing plus seven and decreased income from <unk> in Denmark minus eight and completed projects new leases and lease negotiations plus 61 million.
I remember that I in February 'twenty, one when we summarized 2020 and for the first time have rental income above T. C media I got the question in an interview if I know was satisfied reaching about 3 billion like if we had installed weight reached the finishing line.
My answer is that I like 4 billion better that development has no finishing line we will continue.
We have signed new leases for the last quarter of 86 million for the full year $371 million then pass it isn't that left them for the quarter is 13 million 91 million for the period.
I'm very grateful to the whole organization, who works hard umbrella both E C add more struggling days.
Here are some of the tenants that we have signed during Q4, two leveling to the Duncan area as I talked about already in October but also be small a part of the message in the housing boy. So if they bought a lot of young 13 and has the white papers here with a new project to mark them in loomed all of.
I'm all good representatives of growing businesses in our region.
He will have the nerf blasting in historical perspective, lapping some green termination in light Blue dark blue stacks of a net lapping now so denying positive quarters in a row and the high volume with with new demand seems to continue.
We still see no end to the question I'll walk away.
And for the employees.
When it comes to net letting I continue to repeat myself on this slide we have no promises ahead, but we do everything we can every single day to continue to be on the positive side.
Water is in this.
Perspective, a short period we.
We see potential ahead, but we also know that we will get termination in Q1.
So to nine quarters in a row is good.
<unk> 40 is better so of course, we go for that.
Here are the lists our 10 largest tenants in alphabetic order strong customers and they contribute with 20% of our rental income eight out of 10 are governmental tenants on the rental income from public tenants is in total 23% and they contribute in long term to long term stability.
Our cash flow.
The rental value as opposed to January 4.646 billion per year, plus five 4% and rental income for video 157 million plus $2 eight.
Looking at like for like figures all the properties, we owned a year ago, excluding projects compared with updated figures. We can see that the rental value is up two 7% and rental income is down 0.2%.
The growth in rental values supported by indexation of one 6% in Sweden, and approximately 1% of Denmark lower rental income is an effect of higher vacancy there is normally a gap between moving out and moving in so although it isn't that nothing has been high and positive we can occasionally have lower Inc.
And a part of the portfolio from one period to another and that.
That is what we see at the moment.
Let's look at the changes in the market value of our properties.
We started the year with 55 billion and 872 million in accordance with our external evaluation, where we let them evaluate 100% of the portfolio every year and same routine this year of course.
Acquisition adds on 201 million investments 2.204 billion divestment minus 117 changes in valuation plus 585 million and together, we counted sensations of $423 million, that's summarized to a value of 59 billion 100 in <unk>.
68 immediate Swedish krona.
The value of the portfolio has developed as you can see on this slide since 2005 without raising any new equity with investments new leases on a few transactions. We are also doing the lost a bit more struggling here being able to increase the value bit by bit.
These figures the running yield so how we actually perform in relation to the evaluation.
So this is not devaluation yield.
For the whole portfolio the occupancy rate is 91% excluding project on land and with an operating surplus of 3.140 billion that gives our running yield of five 6%.
On the left the portfolio would gave a running yield of six point for good earnings capacity in relation to the value all the portfolio.
In the office market.
The portfolio have a market value of $47 6 billion and overall the occupancy rate is 91% 92 in house in myeloma 87, and has some borrowing 91, even though I like to do in Copenhagen.
A bit higher vacancy affected by the gap between tenants moving in and out as I mentioned.
For example, Ikea have continued to downsize in external rental areas and we have effects from that both in house and in myeloma.
These figures will improve later this year, but the full effect from many new leases will come also in 2026.
Occupancy for offices and helping bar is estimated to increase 2% in October for example from new leases, we have signed so far.
The operating surplus front offices are summarized two 2.676 billion on the running yield of five five to seven six points to full it at.
The demand for logistic and production continues to be good, especially in myeloma with an occupancy of 95% lower than it has been worth 83% 99 in the unlike the fix in Copenhagen.
The 8% occupancy rates as a whole with the running yield of six five to seven seven.
Seven 6% fully let and the total value of $8.212 billion.
We continued to see hard of competition in the third party logistics segment with quick changes it needs. Our best success for US is with tenants who have a combination of needs for example production on logistics and even better if they also have wechat search and development. They have high demand and are willing to pay for it.
Quality.
The development of our total portfolio was running yield a five 6% brings stability and luckily the since the portfolio overall has high quality angled locations of notice before a high increase of the bond yield since 2021.
And here are some ESG results from Q4 certification reached our goal of 90% of the Swedish offices in the end of 'twenty four.
The evolution of supplies will continue and maybe forever because changes happen all the time. So this work will never stop.
Our carbon emissions from scope, one and two will continue to decrease the impact the or lower but we are also dependent on our energy suppliers, especially in Denmark.
And did he consumption housing projects further and that work will also continue.
And some other sustainability highlights from Q4 as mentioned we managed to reach our certification goal for 25, one year ahead. So now we continue with the rest of the portfolio. It's good to note is that Denmark not follow the same track and I'm looking forward to seeing the denny's Danish portfolio catching up.
And one thing on that is that we want the Green Lighthouse award from the Odyssey don't like them.
Big sources, yet that's.
But it was in Denmark and in Sweden, We won a suite and Green building Council. The prize for best specification, both in class media victim mcgavock not indexed.
Other part of sustainability is working environment unsecured D. At the our building sites of course, there are a lot of regulations that who farnell follow carefully but doing 24, we have extended the work based controls in order to improve the security. Furthermore.
The work is a combination of control and support and we do this together with our suppliers.
Here's a catalog of value and properties are in of course, it is 40% of the value in myeloma 'twenty two in healthy while <unk> 16 in the 'twenty two in Copenhagen.
Okay.
Something about the region I have already repeatedly talked about the massive ongoing infrastructure investments in Denmark. The construction of a fit my belt, Tom though they increased activity NASA, Copenhagen airport and the regions competitive growth in number of workplace.
So this time, let's mentioned something about the report from the full when it suddenly become obvious that the demographic situation in Sweden is expected to be a bit different I had fewer.
Future growth seemed to slow down.
And in that perspective, it's interesting to look at school or not and where the growth is expected.
Everything continues to point off the largest sit as having the most growth and also the greatest attraction for people from other parts of Sweden moving to this region.
Maybe not a surprise, but still good to have some numbers to support the opinion.
And time for financials and over to you. Thank.
Thank you very much and good morning, everyone.
Looking at the Q4 P&L isolated you could see the rental income amounting to 1.059 billion Swedish kroner up 9% versus the same quarter the previous year.
Operating surplus of $752 million up 14%.
And the income from property management amounted to $452 million up a full 23% as we see the effects of lower market interest rates feeding through our P&L. This.
This quarter.
We had.
Positive value changes in the quarter $514 million.
Usually we had external appraisers.
Valuing a 100% of the portfolio as of year end.
In the same way as we have done historically.
The contribution to the value as opposed to value changes comes to large part from projects.
And to some extent from the positive not letting the underlying assumptions regarding good requirements.
Inpatient market rents et cetera have been largely unchanged.
Small variations.
All in all we had a profit for the period of 860 million.
On the next slide you can see the consolidated balance sheets as of year end.
Investment properties amounting to $59.168 billion, which was up approximately $3 2 billion.
Versus 12 months previously.
Equity in the same period has increased by $800 million approximately.
And our borrowings have increased by approximately 2.1 billion kroner.
During 2024.
Translating this into key figures.
Our equity assets ratio stands at 38.1% and our LTV at 50 point mine.
Our interest cover ratio for 2024 was two five times.
And the bra and Ravi as a long term net asset value measurement stands at $93 58, chronic per share, which is up eight and a half the sims versus 12 months previously adjusted for the paid dividend during 'twenty 'twenty four.
Okay.
Looking at the next slide you can see the historic developments of at Brian Harvey.
The growth has been so much slower over the past few years as you're well aware.
But I think it's worthwhile pointing out that since 2009, we actually still a pattern.
Average annual growth of 15% and that Brian Harvey.
<unk> paid dividends.
On the next slide you can see the development of some financial metrics in the long term perspective.
On the left hand side, you can see how the interest cover ratio stabilizing around two and a half time.
Over the past few quarters.
And in the long term perspective that is.
The reasonable level to be at.
And well in line with our goal of having a minimum of 2.0 times.
And the equity assets ratio.
At 38.1 is also in a historical perspective on this strong.
Drug level.
As is the LTV at 59%.
Looking at financial stability on the next slide we like to follow the net debt to EBITDA D. A.
Quota.
And that is now a multiple of 9.9 times.
It's actually the strongest level that we've been at since 2012.
And we think this a relevant metric.
Since that measures actual deaths and our earnings.
In cash.
Looking at our financing sources as of end of 2024, 48% comes from.
Collateral bank agreements with with Nordic banks, 39% from the Danish mortgage system and 13% from the bond market.
As most of you are are surely went away in the bond market works.
Better than it has.
It has been a strong improvement in the conditions in the bond markets over 2024.
And.
I could also mention that in January.
We did two additional smaller bond issues.
We see the three year bonds at 104 basis points margin and a three and a half year bond at 112.
Basis points margin.
Illustrating that the market works a lot better.
Then it has been.
Over the past few years.
Yeah.
Moving to the next slide you can see the details.
Of our loan portfolio.
The average interest rate now stands at 3.4% the decrease during Q4.
Is basically attributable to lower cyber and Khyber rates.
And you should of course remember looking into the future that during 2025 and 2026.
We have a few very attractive interest rate swaps, which gradually when expired. During these two years. So that will of course affect the future development of the average interest rates in our room folio.
On the next slide.
You can see.
Picture showing the interest rate sensitivity.
We have good headroom both to our own.
Hum.
Objectives.
Having an interest coverage ratio of at least two times.
And even better headroom.
Versus our bank covenants all in interest cover ratio of 1.5 times.
So basically for Frank from the situation it's at.
In December the.
Underlying market rates could move three and half percentage points, we would still be.
At our target level of 2.0 times interest coverage ratio.
On the next slide you can see the historic development of.
Our our fixed interest period.
And the loan maturity.
Non maturity now stands at 5.5.
Yes, and the fixed interest period at 2.6 years, so fairly stable developments over the past few years as the graph shows.
And we basically continue to follow our interest rate risk management policy.
Yeah.
Lastly, looking at the available funds as of December.
We had unutilized credit facilities, plus liquid funds amounting to 3.7 billion Swedish kroner and as I mentioned a minute a minute ago in January we issued bonds.
Amounting to 600 million. In addition to that so that of course gives a good access to liquidity.
Liquidity at the moment.
Enrico: And with that I'll hand, the word back to you Enrico.
Enrico: Thank you and add a short update on our investments and progress on a quick overview of our largest project.
Speaker Change: During 'twenty four we have invested $2 2 million and it remains 3 billion 2008 to invest improve project is the record year for investments.
Speaker Change: And we have as mentioned before quite quickly been able to improve the yield on cost and we are now at better levels than we saw during the quick change for hygiene requirements.
Speaker Change: And for 'twenty for the gain from project was approximately $250 million and we have a good volume ongoing with good quality.
Speaker Change: Yeah. This is one of my top favorites that that one in the end, we refurbish them add on areas for a new tenant arm 5700 square meters and the seven years lease investment have increased the base to 145 million, excluding the value of the land, but so has also.
Speaker Change: So the yield on cost a bit of a 10% yield on cost for the investment on over 6060 alone cost, including Ingo and property value investor.
Speaker Change: The investment gives arm a new modern facility and we will also improve the impression on the activities of their whole idea in the area.
Speaker Change: Postal and one phase two also known and you've built office of 10100 square meters practice side the central station.
Speaker Change: Mount Foreign book 8 million, including value over to them.
Speaker Change: 374 million excluding land complete.
Speaker Change: Completion, we'll start our Q1, 'twenty six and yield on cost $6 five of them.
Speaker Change: Or given the axon will be one of the first tenants in place together with Hospira.
Speaker Change: In the southern part of the loan we have been able to continue development of tomorrow.
Speaker Change: This is a project for BP Stan completion in Q2 26 on investment seven to 9 million.
Speaker Change: He along costs the 7%.
Speaker Change: Last the larger project and known presented today is stood otherwise.
Speaker Change: One 1100.
Speaker Change: 11900 square meters from note that completion in Q3 26 in.
Speaker Change: The investment of 263 million I E don't cost. It's also had set up with them.
Speaker Change: In my lab and he'll yet we have black Hornet one eight.
Speaker Change: 884 million the mobility have has already been completed and has a good occupancy the office will be completed and 25 and doing 26 yield on cost 6.2%.
Speaker Change: And those shows that one in my lab is an iconic building right beside the train station.
Speaker Change: 6000 square meters, the offices restaurants and co working and has also been proven b. They gave us the absolute top brands in myeloma.
Speaker Change: Completion in Q4, 25, and moving in with continued doing 26.
Speaker Change: In the docking area, we continue the refurbishment for University of malware on the police education, we invest 106 million 10 years lease and you don't cost a 11% completion in Q3 25.
Speaker Change: As Gil I'll spend one malware within the facility for Celtic competition in Q3, 25, approximately 10000 square meter production logistic and office.
Speaker Change: Investment $264 million and give them cost 7%.
Speaker Change: And in so not all of them.
Speaker Change: We build the 17000 square meter logistic.
100% pre let 15 years lease completion in Q1 25.
Speaker Change: A 280 million yield on cost.
Speaker Change: <unk> improved.
Speaker Change: So close to 7%.
Speaker Change: Yeah.
Speaker Change: In Hawthorne, Copenhagen, we invest there for new schools for aggregate 25 years at least 11600 square meters on investment 390 million completion expected up and 25.
Speaker Change: And that's where some of the ongoing projects left also mentioned something about future investments.
Speaker Change: And it is tough in myeloma, where we have signed an agreement with the University of myeloma after a public procurement Act.
Speaker Change: I think the Sun is shining.
Speaker Change: Yeah.
Speaker Change: [laughter] use some techniques to improve the picture, but sorry for that.
Speaker Change:
Speaker Change: Okay.
Speaker Change: Yeah.
Speaker Change: Yes, we have signed an agreement with a universe of myeloma. The architects Joel competition is completed on the process with the solar plan continues.
Speaker Change: The volume has increased further so now we think we can reach approximately 20000 square meters completion late 'twenty to 'twenty five we'll still be possible.
Speaker Change: Late 'twenty.
Speaker Change: Seven yes, sorry.
Speaker Change: Slide 27.
Speaker Change: And here, it's for possible project inbound unhealthy boy, we can develop some 70000 square meters in the future funding plans are approved.
Speaker Change: And then for the first three project progressed the bill it's ongoing.
Speaker Change: Some office possibilities in myeloma and the out of them in the Heartland of gum continues to have very high attention of course.
Speaker Change: Another way of growing is of course acquisition, even if it's not a part of 'twenty 'twenty four less or less but then mention something about the announcement from yesterday, we have agreed to acquire eight properties from getting installed closing first of April.
Speaker Change: My line went on to kill you've done and he said myeloma.
Speaker Change: Yes, but the boy in the pet owner.
Speaker Change: While it has symbol in total 51000 square meters left about area 82000 square meter land development industry and 12.
Speaker Change: 12000 square meter building rights, where offices in Luton.
Speaker Change: Total property value of $2.425 billion and estimated yearly operating surplus $130 million.
Speaker Change: Golden premises that contribute to strengthen our clusters together will land, but we can develop and I would say that's the perfect match for us.
Speaker Change: And here's a map of the dividend development properties recent call and one they're against the Boi 50 and in the recent call on is just beside promote them and throughout all that we would develop for impact ABC and note that so good location for us.
Speaker Change: And a summary of Q4 again, a new record as rental income for one quarter positive net lending income from property management up 22% net debt to EBITDA below 10 times and.
Speaker Change: And we see a demand remained for good quality and good locations and we contribute with our project investments.
Speaker Change: And the board proposes a dividend of three point 'twenty Corona has sure.
Speaker Change: And by that we are open for questions.
Speaker Change: Okay.
Speaker Change: If you wish to ask a question. Please dial pound key five on your telephone keypad to enter the queue. If you wish to withdraw your question. Please dial pound key six on your telephone keypad.
Speaker Change: The next question comes from John <unk> from Van Landshark Kempen.
Speaker Change: Please go ahead.
John: Hi, good morning, Thanks for taking my questions.
Speaker Change: And the report you mentioned that the macro economic backdrop remains weak that you expect this to improve over the coming quarters.
Speaker Change: Are you already seeing any change in your leasing discussions that you have with tenants.
Speaker Change: Yeah.
Speaker Change: I would say that's after Beaumont is approximately the same as we've seen them given the last year.
Speaker Change: They are very keen to find the right solution they are willing to pay for quality.
Speaker Change:
Speaker Change: And the main question is actually how to find their best way Oh, how to work I had.
Speaker Change: And so that continues to be an important factor how we can help them with that solution because it's not only about physical area. It sells about they way of work.
Speaker Change:
We see still a mix of the both expansion and downsizing.
Speaker Change:
Speaker Change: But.
Speaker Change: But more positive trends.
Speaker Change: But still it takes time to make the decision.
Speaker Change: Okay, that's clear and then on the granite portfolio that you're acquiring.
Speaker Change: Do you have to screen, perhaps a bit drier than the acquisitions that you have to make over the past few years.
Speaker Change: I mean asset management potential and the six yielding assets or is this really mostly coming from the two development properties that you have in aluminum.
Speaker Change: I think is a good running portfolio, but the possible improvements are on maybe some energy savings and some we also see possible tenants.
Speaker Change: Improvements of it but it's a very good value portfolio.
Speaker Change: Okay.
Speaker Change: And then just on the funding of the steel.
Speaker Change: How should we think about this is rusty.
Speaker Change: Capital structure as a whole in relation to where we are in the cycle.
Speaker Change: I appreciate that you don't really have from net debt EBITDA target for what would you consider to be a fair number.
Well regarding funding of this transaction.
Speaker Change: We can fund that by.
Speaker Change: The existing credit facilities. So so basically short term, we can or we can we can fund it.
Speaker Change: With loans.
Speaker Change: Clearly that would have an effect and immediate effect on LTV of approximately two percentage points.
Speaker Change: We are not at all worried about.
Speaker Change: Such so that type of increase in the MTB soon.
Speaker Change: Since the cash flow generation, both from this portfolio and from our our overall portfolio.
Speaker Change: Would gradually bring the LTV downwards over the coming quarters as well.
Speaker Change:
Speaker Change: So.
Speaker Change: When it comes to net debt to EBITDA, we're of course happy to be below 10 times.
Speaker Change: But if we would move up a few decimals.
Speaker Change: That does not worry us either.
Speaker Change: And I think long term, we've said that if we would move up towards 12 or something.
Speaker Change: That would make us make us think maybe take action.
Speaker Change: But being around 10% and haul for something it's quite fine.
I'm looking at the LTV ahead, so even if the acquisition gives a bit of a higher LTV.
Speaker Change: At the moment, and we think that doing normal circumstances that we learned back in.
Speaker Change: Around or a bit below 50% in the end of 'twenty, six and still be able to.
Speaker Change: Both pay dividend and continue with our project our investments so the strong cash flow really makes an effect here.
Speaker Change: Okay very clear thank you.
Speaker Change: Yeah.
Speaker Change: Yeah.
Lars: The next question comes from Lars <unk> from Seb. Please.
Speaker Change: Please go ahead.
Speaker Change: Thank you have a follow up on that regarding the acquisition level loved they ought to be I think I already mentioned that.
Speaker Change: Transaction in San Francisco to lift to be by around 2%, There's obviously a lot of room.
Speaker Change: Up to your own self imposed limit of 60.
Speaker Change: But it sounds like you're you're not prepared to go much farther than that so my question is.
Speaker Change: If you are considering making a material additional acquisition.
Speaker Change: At this point in time and early 'twenty five or during the year would you have to would you in that situation considering doing a director chair issue.
Speaker Change: [laughter] that's of course, a very hypothetical question.
Speaker Change: Bob.
Speaker Change:
Speaker Change: I mean, we have the mandate from the AGM.
Speaker Change: Does the shares up to 10% of the total number of outstanding shares.
Speaker Change: It is a tool, which we can use if the opportunity is the right one and and if the size would motivate that.
Speaker Change: At the root of action.
Speaker Change: Hum.
Speaker Change: But as you as you know.
Speaker Change: <unk> correctly.
Speaker Change: This type of transaction and the effect on the LTV is not large enough for us to feel that.
Speaker Change: Good for the existing shareholders to use that tool at present, but we are aware that the tool exist under.
Speaker Change: Under the REIT with expenses.
Speaker Change: They use it.
Speaker Change: Okay perfect.
Speaker Change: And then second question.
Speaker Change: Different Barry I'm thinking about net betting first quarter.
Speaker Change: So far I know that both the smurfit.
Speaker Change: Leaf and a deep to see at least that you.
Speaker Change: And all through press releases in January but put in the fourth quarter. So I think you'll have one additional layoffs announced they wanted me to Hfcs bomber.
Speaker Change:
Some 5800 square meters, let me put it this way so far in Q1 have you had an immaterial terminations.
Speaker Change: So you'll have to take into account.
Speaker Change: But we know that we will get termination seen in Q1 so.
Speaker Change: But we also have a potential new leases so.
Speaker Change: On the <unk>.
Speaker Change: Hopeful also for Q1.
Speaker Change: Okay. So there is a possibility of extending that impressive track record of some 39 quarters and growing.
Speaker Change: As mentioned I think four is better than the 39.
Speaker Change: Got it okay. Thank you for my questions.
Eric: The next question comes from Eric <unk> from Carnegie. Please.
Speaker Change: Please go ahead.
Eric: Thank you and good morning.
Speaker Change: R R.
Speaker Change: I had a few questions starting off with the rental market and maybe continuing on.
Speaker Change: Your view of terminations in Q1.
Speaker Change: Could you give us some examples of what terminations, you're actually specifically talking about on how large are these just so that we get a sense of how much you need to find a new leases in order to sort of balance that.
Speaker Change: I mean, the largest one is the one we have mentioned before we are expecting a termination from Saab.
Speaker Change: We know that they are moving to loan and that will be about $30 million.
Speaker Change: Okay. So that's the sort of the major termination that you then need to counter somehow in terms of your leases.
Speaker Change: Yeah.
Speaker Change: Alright, and then moving on in terms of the vacancy rate. It came out two percentage points I believe quarter on quarter.
Speaker Change: <unk>.
Speaker Change: But you seem quite confident in the vacancy rate coming down towards the second half of the year or towards the end of 'twenty five why is it what is it that's driving your confidence in this is it purely new leases moving in or is it something else.
Speaker Change: Okay.
Speaker Change: It's a combination I would say, but if I only have to take into calculation. The leases, we have signed and the.
Speaker Change: The termination that we have been given and what we know about.
Speaker Change: Happens during this year I see that in I mean, as I mentioned four offices in in housing buoy. The numbers willing we clearly improved two percentage points at least in the in October.
Speaker Change: No.
It it takes some time before all of the signed leases.
Speaker Change: Move in but.
Speaker Change: And that I think yes, we.
Speaker Change: In the best of times, a week, we can be a bit higher on the occupancy.
Speaker Change: So doing the circumstances.
Speaker Change: I'm confident that we have good products and we have enough.
Speaker Change: All discussions ongoing so that we get the subs.
Speaker Change: So in that.
Speaker Change: But I mean, we bought had a mess for example, a few years ago in a it has involved we know that that will bring.
Speaker Change: Okay pounds and make us a tier of the market.
Speaker Change: On the <unk>.
Speaker Change: The number on the size of the leases we have been able to sign there when Ikea moves out are very good. So I'm I'm I'm very positive on that but still that means that some part of the vacancy could stay a bit but.
Speaker Change: As long as tenants are willing to pay for quality and the rents are are continuously move.
Speaker Change: Moving out based by a bit it's a it's a good market.
Speaker Change: Okay. Thank you that's very clear and then on all investments.
Speaker Change: You invested in the portfolio I believe just a little bit more than 2 billion in 'twenty four.
Speaker Change: How much do you plan to invest in 'twenty five.
Speaker Change:
Speaker Change: Without giving any prognosis on lung box, yeah, we usually say that you.
Speaker Change: So you can expect between one and a half and $2 billion.
Speaker Change: Okay. So it means that you are expecting the investment pace to come down a little bit versus last year.
Speaker Change: Yeah.
Speaker Change: It's in our best maybe.
Speaker Change: Maybe a bit a bit down depends on the largest project how much they use at the at the moment. So that's approximately the same same level I think it will be closer to two than in one on the half that's there.
Speaker Change: A bit tricky to say.
Speaker Change: Okay perfect.
Speaker Change: And then on the acquisition yesterday.
Speaker Change: When do you think you can start projects on the land that you were acquired in inland is this a sort of a long term process or is it something that you can start short term as well.
Speaker Change: I actually think that the industrial park.
Speaker Change:
Speaker Change: Could go.
Speaker Change: Quite quick.
Speaker Change: But still of course, it will take time.
Speaker Change: It's a large piece of land but.
Speaker Change: There is good potential.
Speaker Change: Potential there.
Speaker Change: But you don't like it they started this ship.
Speaker Change: No that's a bit too close and.
Speaker Change: That's a bit too too fast I think.
Speaker Change: Okay. Thank you and then my final question a bit of a sort of a detailed question I believe the actual tax rate for the second half was about 4%, whereas it's 3% for the total in terms of 24.
Speaker Change: What should we expect going forward in terms of actual tax rate is it closer to what we've seen now in the second half or or something else.
Speaker Change: I would look at the full year 'twenty four.
Speaker Change: Looking at taxes on a quarterly basis, I mean, you're you're adding.
Speaker Change: You sometimes have some some.
Speaker Change: Effects, so it's not quite even quarter by quarter. So look at the full year 'twenty four.
Speaker Change: Got you. Thank you very much those were my questions.
Stefan Anderson: The next question comes from Stefan Anderson from Danske Bank eight S. Denmark serious video.
Speaker Change: Please go ahead.
Speaker Change: Thank you just one question for me.
Speaker Change: Looking at the NOI margin.
Speaker Change: It's up quite a lot year on year.
Speaker Change: And we've seen that throughout the year.
Speaker Change: I guess as well, but I'm curious just on this.
Speaker Change: If there is.
Speaker Change: In there if there's any one offs at all.
Speaker Change: Oracle the reason I'm asking is also the historical pattern has been that.
Speaker Change: Q1.
Speaker Change: So we all have been.
Speaker Change: At the same level or even above that so I'm just trying to.
Speaker Change: I understand if we could be that optimistic also for Q1 25, I know you don't give guidance but.
Speaker Change: Do you understand my question is there any one offs. So could we expect the same pattern as normal.
Speaker Change: No.
Speaker Change: No no particular, one offs as you say I mean look at Q4.
Speaker Change: The operating surplus ratio was unusually strong.
Speaker Change:
Speaker Change: So some weather effects.
Speaker Change: I mean generally the difference versus Q4.
In 2023, you mainly find indeed, the actually operating costs.
Speaker Change: The other items there.
Speaker Change: I mean repair and maintenance property tax prep administration was in relation to revenues fairly much the same as the previous year, but we had a lower.
Speaker Change: Operating operating costs.
Speaker Change: For the properties versus Q4 of 23.
Speaker Change: Yeah.
Speaker Change: Yes.
Speaker Change: Thank you.
Speaker Change: As a reminder, if you wish to ask a question. Please dial pound key five on your telephone keypad.
Operator: The next question comes from Alexander Tota, Manav from Green Street.
Speaker Change: Please go ahead.
Speaker Change: Yeah.
Speaker Change: Okay.
Alexander: Alexander total amount of Green Street. Your line is now on muted.
Speaker Change: Please go ahead.
Speaker Change: Okay.
Speaker Change: Good morning, and thank you for taking my question. One question for me regarding the press release on the granite acquisition that came out yesterday afternoon.
Speaker Change: Mentioned, the underlying property value across the eight properties.
Speaker Change: $2 4 billion.
Speaker Change: Would you be able to give us a split out of that figure would be 360 investment properties and the two development properties.
Speaker Change: And now we have agreed not to to do that and so the figures that we can give you is in the press release.
Speaker Change: Last.
Speaker Change: I think we were very happy with the transaction.
Speaker Change: And I think that both the.
Speaker Change: The running portfolio and the development properties will give us a very good match for that.
Speaker Change: And completion for out.
Speaker Change: The portfolio that we already have.
Speaker Change: Okay. Thank you.
Speaker Change: There are no more questions at this time, so I hand, the conference back to the speakers for any closing comments.
Speaker Change: Okay.
Speaker Change: So thank you for today and of course, we are.
Speaker Change: We are open for further questions ahead. So just contact US is there anything else you want to add on.
Thank you very much everybody for listening in thank.
Speaker Change: Thank you.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: Cool recording is off.
Speaker Change: [music].
Speaker Change: Sure.
Speaker Change: Uh huh.
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Yes.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: [music].
Your line is muted.
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Thanks.
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: Thanks.
Yes.
Speaker Change: Yeah.
Speaker Change: No.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Yes.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Yeah.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Yeah.
Speaker Change: Right.
Speaker Change: Yes.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Yeah.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Uh huh.
Speaker Change: [music].
Speaker Change: Yeah.
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Sure.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Yeah.
Speaker Change: [music].
Speaker Change: Yeah.
Speaker Change: Yes.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Yeah.
Speaker Change: Right.
Speaker Change: Yeah.
Speaker Change: Yeah.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: Thanks.
Speaker Change: No.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: [music].
Yeah.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Yeah.
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Yes.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Yes.
Speaker Change: [music].
Speaker Change: Yeah.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Sure.
Speaker Change: No.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Yes.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Yes.
Speaker Change: [music].
Speaker Change: Yes.
Speaker Change: Thanks.
Speaker Change: [music].
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Okay.
[music].
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Conference will automatically and in 10 minutes.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Yes.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: Thanks.
Speaker Change: Yeah.
Okay.
Speaker Change: Great.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: Sure.
Speaker Change: [music].
Speaker Change: Uh huh.
Speaker Change: [music].
Speaker Change: Yes.
Speaker Change: Thanks.
Speaker Change: Yes.
Speaker Change: No.
Speaker Change: Right.
Speaker Change: Yes.
Speaker Change: [music].
Speaker Change: Yes.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Yes.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: Thanks.
Speaker Change: Yes.
Speaker Change: Yeah.
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Sure.
Speaker Change: Sure.
Speaker Change: [music].
Speaker Change: Yeah.
Speaker Change: [music].
Speaker Change: Thank you.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Yeah.
Speaker Change: Okay.
Speaker Change: Sure.
Speaker Change: Yes.
Speaker Change: Yeah.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: Thanks.
Speaker Change: [music].
Speaker Change: Great.
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Conference will automatically and in 30 seconds.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Yes.
Speaker Change: [music].
Speaker Change: Yeah.
Speaker Change: Conference ending goodbye.