Q1 2025 Wihlborgs Fastigheter AB Earnings Call
Welcome to the presentations, obviously most of Q1 'twenty to 'twenty five.
Operator: Welcome to the presentations of WIHLBORGS Q1 2025. A world with new conditions almost every day. Things have to be done.
Well the new conditions almost every day.
But.
Things have to be done.
So those keywords since many years is pumping costs.
Operator: His key word for many years is handlings cap. best translated to We continue to act where we find possibility and we are prepared for new actions whenever the time is right. During 2024, we had record high volume of new cases, and that strong trend has continued during 2024. high quality, good locations in the region with is also ahead. and strong cash flow gives opportunities for action. continues.
That's translated to.
We continue to act when we find them.
And we are prepared for new actions whenever the time is right.
During 'twenty 'twenty four we had record high volume of new leases and that strong trend has continued during 2020.
High quality good locations for the region.
Okay.
<unk> also had.
Our strong cash flow gives opportunities for action.
Shouldn't continues.
Operator: Let's go to our report and the summary of Q. Rental income $1,045,000.00 Income for property management, 9% to $400,000.00 Net letting positive with $35,000,000.00 Good activity.
Let's go to our report and a summary of Q.
Rental income 1 billion four 5 million income from property management, 9% to 400 million net letting positive with 35 million.
Activity.
Operator: debt to EBITDA at 10 times.
The debt to EBITDA at 10 times.
Operator: agreed an acquisition of 2.4 billion from Genestor, completed in the 1st of April. Good quality and good location continues to be attractive and we continue with our project investments with good results. The result for the period, small increase of rental income to $1,045,000,000, but let's remember that the comparison period 2024 had one off over $20,000,000. The operating surplus increased to $731 million and income from property management, as mentioned, increased by 9% to $463 million. The result for the period amounts to $431 million, corresponding to 1.4% share and EPRA and REIT. 329508 Krona per share adjusted for paid dividends.
Agreed and acquisition of $2 4 billion from canister competed in it personally.
Good quality and good locations continues to be attractive and we continue with our project investments with good results.
The result for the period small increase the rental income two $1.045 billion, but lets remember that the comparison period 2024 had one offs over $20 million.
Operating surplus increased to 731 million on income from property management as mentioned increased by 9% to 460 feet them again.
The result for the period amounted to 401 million corresponding to one for.
Sure and F N b.
If we do 95 O E krona per share adjusted for dividends.
A comparison of the rental income Q1, 'twenty four and Q1 'twenty.
Operator: A comparison of the rental income Q1'24 and Q1'24. Indexation gives 10 million. Termination fees plus, no, minus 21 million. Acquisition plus 3 million. Currency effect minus 1 million. Additional 7 million. And completed projects, new leases and renewal plus 7 million. Q1'24 was a record level on new leases, and I then got questions if we and the market could keep that 10% volume. The market can show. I'm very confident that our skilled both focus and tempo. And now the numbers also give proof that the market is there. Q1 2025 is the third highest volume of new leases ever, 134 million, and net letting of plus 35 million.
Indexation game 10 million termination fees, plus and I'm, no minus 21 million.
Acquisition, plus 3 million currency effect minus 1 million. Additionally.
And then and completed.
Projects, new leases and we need.
7 million.
Q1, 'twenty four it was a record level on new leases and either and it got questions, if we and the market could keep them.
No.
The market can ship.
I'm very confident that our skilled.
Both focus and tempo.
And now the numbers also give proof that the market is there.
Q1, 25 is the third highest volume on new leases ever 134 million and net lapping a plus 35 million.
You never know ahead, what will affect each quarter, but seen overtime 40 positive quarters in a row is our new record very.
Operator: You never know ahead what will affect each quarter, but seen over time, 40 positive quarters in a row is our new record.
Operator: Very grateful to the whole organisation for this. It will be interesting to see how we can sign new leases in both existing premises and in the new build projects. The cost is a strength. Without new areas, we wouldn't be able to have positive net letting in all these quarters. But on a yearly basis, the net letting is positive also in the existing portfolio, both for 2023 and 2024. And 2025 also looks positive so far, including April.
I'm very grateful to the whole organization for this.
I seem to see how we can find new leases in both existing premises and in the new build projects.
It is a strength.
Without new areas, we wouldn't be able to have positive net.
In all of these quarters, but on a yearly basis. The net nothing is positive also in the existing portfolio both for 2023 and 'twenty 'twenty four and.
2025 also looks positive so far including April.
Here are some of the tenants that we have signed during Q1, the largest leases for those leases for Marvel Universe.
Operator: Here are some of the tenants that we have signed during Q1, the largest leases for Malmö University. But as always, we see a mix of different businesses. It's companies in IKEA, construction, civil engineering, recruitment and more governmental tenants as myndigheten för tillgängliga medier.
But as always we see a mix of different businesses.
It's the company seen in construction.
Construction civil engineering recruitment and more governmental tenants as a means to get them so too young Amanda.
Operator: the why diversity is always a strength. Here we have the net letting in a historic perspective. Lettings in green, termination in light blue and dark blue stacks are the net letting. Now 40 positive quarters in a row and the high volume with new and high demands seem to continue.
The wide diversity is always a strength.
Yeah.
He will have the net letting in historic dip lettings ingredient termination in light blue and Doctor stacks, all the net lending.
Now 40 positive quarters in a row and the high volume with new and higher demand seems to continue.
Operator: And Q2 has also started well with a new lease with Per Aaslep in Copenhagen of 24,000 square meters at AB Industrievej. So good potential also ahead.
And Q2 has also started well with a new lease with pet all slept in Copenhagen, Our 24000 square meters eight industry right. So good potential also ahead.
Operator: Happy with 40 quarters. So next goal is to beat that. and the list of our 10 largest. Strong customers and they contribute with 20% of our rental income. 8 out of 10 are governmental tenants. And the public sector contributes with 23% of total rental income. rental value as opposed to It's $4,596,000,000 per year plus 3.1% of rental income. $1,000,000,000 Again, Perfect.
I've been with 40 quarters. So next goal is to beat that.
Okay.
As a list of our 10 largest.
If I take orders strong customers and they contribute with 20% of our rental income eight out.
Ill turn our governmental tenants and the public sector contributes with 23% of total rental income.
Rental value as a person.
So acquisition.
It's a 4.596 billion per year, plus three 1% and rental income won't be.
Yeah.
Perfect.
The red.
But we also see a bit higher vacancy in line with the rest of the market.
Operator: but we also see a bit higher vacancy in line with the rest of the market. Looking at the life-for-life figures, all the properties we own, so... budget is 4% and rental income is down 0.8%. The growth in rental value is supported by indexation of 1.6% in Sweden and approximately 1% in Denmark. Lower rental income as an effect of higher vacancy. And that comes both from a timing effect with many new leases, where we can see a gap between moving out and new signed tenants moving in. That means that will improve in end 25 and continues good effect 2026.
Looking at the like for like figures all the properties we own.
Okay.
What percent and rental income is down <unk>, 8%.
The growth in rental value is supported by indexation of one 6% in Sweden, and approximately 1% of Denmark.
Our rental income as an effect of higher vacancy and that comes both from a timing effect with many new leases.
We can see a gap between moving out a new sign tenants moving in.
That means that will improve in <unk> and 'twenty five and continuous good effect.
Six.
But we also see how your vacancy in the market in some areas as in the industrial portfolio in housing more I think that tight vacancy will follow us for a bit longer time and in other areas as officers in myeloma occupancy will pick up quite quickly when the market turns.
Operator: But we also see higher vacancy in the market in some areas, as in the industrial portfolio in Helsingborg. I think that higher vacancy will follow us for a bit longer time. And in other areas, as offices in Malmö occupancy will pick up quite quickly when the market turns.
We see every very few new projects from competitors and my best estimate is that we can continue to take advantage of that.
Operator: We see very few new projects from competitors and my best estimate is that we can continue to take advantage of that.
Yeah.
Let's look at changes in market value of our properties. We started the year with 59.168 billion in accordance with our external evaluation.
Operator: Let's look at changes in market value of our properties. We started the year with $59,168,000,000 in accordance with our external valuation. and we let them evaluate 100% of the portfolio every year end. no acquisition during the period investment 638 million divestment minus 13 changes in valuation plus 69 million and together with currency translation of minus 736 million that's summarized to a value of 59 billion 126 million 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 and a few transactions, we have also, during the last few years, been able to increase the value bit by bit.
And we let them evaluate 100% of the portfolio every year and.
No acquisition during the period investments 638 million divestment minus 13 changes evaluation, plus $69 million and together rig counts. It sounds like my of minus 736 million that summarized to value of 59.126 billion 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 in new leases and if you have transactions. We have also during the last six months.
India has been able to increase the value of bit by bit or 'twenty five the transaction made for some April will contribute in a good way, but we will see that in the next report.
Operator: For 2025, the transaction made 1 April will contribute in a good way, but we will see that in the next report. These figures, the running yield, show how we actually perform in relation to the valuation. So this is not the valuation yield. For the whole portfolio, the occupancy rate is 9%, excluding project and land, and with an operating surplus of 3,140,000,000, that gives a running yield of 5.6%. For the left, the portfolio would give a running yield of 6.4%. Good earnings capacity in relation to the value of the portfolio and good cash flow generation is the foundation for further expansion.
Okay.
These figures the running yield show, how we actually perform in relation to that led to the valuation.
So this is not the valuation yields.
So the whole portfolio the occupancy rate is 90% excluding project the land and with an operating surplus of 3.140 billion that gives the running yield of five 6%.
When I left the portfolio would give a running yield of six 4% good earnings capacity in relation to the value of the portfolio and good cash flow generation is the foundation for further expansion.
If we look in the office portfolio the market value is four to 7.1 billion overall the occupancy rate is 91% 92 in myeloma 87 and has been barred 90 190.
Operator: If we look in the office portfolio the market value is 47.1 billion and overall the occupancy rate is 91 percent. 92 in Malmö, 87 in Helsingborg, 91 in Lund and 92 in Copenhagen. Same numbers as year end. A bit higher vacancy than last year, mostly affected by the gap between moving out and new coming in. These figures will improve later this year, but the largest effect from many new leases will come 2026. Occupancy for offices in Helsingborg is estimated to increase 2% in October, for example, from new leases we have signed so far. The operating surplus from offices summarized to 2,572,000,000 and a running yield of 5.5%, 6.2% fully.
92 in Copenhagen same numbers as year end.
Every time, they can see the last year, mostly affected by the gap between.
Out of new coming in these figures will improve later this year, but the largest effect for many new leases will come 'twenty 'twenty six.
Occupancy for all this isn't has convoy is estimated to increase 2% in October for example from new leases, we have signed so far.
The operating surplus from offices summarize two 2.572 billion on the running yield of five 5% six 2% for that.
The demand for logistic.
Operator: The demand for logistics. Production continues to be good in Malmö with an occupancy of 96% in Malmö, lower in Helsingborg at 82%, 99% in Lund and 96% in Copenhagen, 88% rate as a whole with a running yield of 6.5%, 7.6% polylet and total value of 8,383,000,000. For us, the combination of businesses with production, development and logistic will be the best tenant in the industrial portfolio. We continue to see hard competition in the third part of the logistic segment, quick changes in needs, a higher vacancy as an effect of a lot new build facilities. Worth mentioning is that our portfolio in Helsingborg still gives a decent running yield of 6.5% even with a higher vacancy.
Our production continues to be good in myeloma with an occupancy of 96% of Mueller nowhere in housing buoy up to 82% ninety-nine alone. Unlike the sixth in Copenhagen.
88% as a whole with the running yield of six 5% seven 6% Poland.
And total value of $8.383 billion.
For us the combination of businesses with production development and logistic will be the best tenant in the industrial portfolio.
We continue to see how the competition units third party logistic segment quick changes it needs a higher vacancy as an effect of locked new build facilities.
Worth mentioning is that our portfolio and have seen worse, Jim gave some decent running yield of six 5%, even with a higher vacancy.
Also good that tenants in our best segment to continue with good demands.
Operator: Also good that tenants in our best segment continue with good demand. The development of our total portfolio running yields, 5.6%, brings stability, not least since the portfolio overall has a high quality and good locations, as noticed before, a high increase of the running yield since 2020.
The development, our total portfolio running yields five 6% brings stability not least steels that portfolio overall has a high quality and good locations I should notice before a high increase of the running yield is 22.
[noise] ESG yourself from Q1 certification in the Swedish offices are now with 91% and Denmark have started the process in a good way.
Operator: ESG results from Q1 certification in Swedish offices are now at 91% and Denmark have started the process in a good way. Energy consumption continues to decrease and we have a new target of maximum 75 kilowatt hours per square kilometer.
Energy consumption continues to decrease and we have a new target of maximum 75 kilowatt hours per school.
Speaker Change: She was 30.
Operator: Shibu 13. I've seen reporting demands according to We continue our with other But for most of the areas, we have found a way where reporting actually can contribute. for the first possible carbon footprint in the country. We have reached. a goal of reducing climate impact with more than 50% construction of office buildings in the last five years. but an even further balancing system will be necessary. and to be able to work with that in a local way also contributes over history. I think that will be the best way for us. materials as much as possible that will continue to be the most fundamental way of working.
Speaker Change: Okay.
Speaker Change: Demand according to.
Speaker Change: We can you.
Speaker Change: With.
Speaker Change: Okay.
Speaker Change:
Speaker Change: That's limited, but for most of the areas. We have found a way where we're reporting actually can contribute.
Speaker Change: Okay.
Speaker Change: Yeah.
Speaker Change: Thank you.
Speaker Change: Okay.
Speaker Change: Shallow.
Speaker Change: I'll give you.
Speaker Change: Well he was possible carbon footprint right.
Speaker Change: We have reached.
Speaker Change: Well.
Speaker Change: Our goal of reducing climate impact with more than 50% construction of office buildings. The last five years.
Speaker Change: But even further balancing system will be necessary.
Speaker Change: And to be able to work with that in a local way also contribute.
Speaker Change: Yes.
Speaker Change: So that will be the best way for us.
Speaker Change: Yeah.
Speaker Change: Okay.
Yeah.
Paul: Seeing materials as much as Paul well that will continue most fundamental way of working.
Speaker Change: We have.
Operator: kind of collaboration.
Kind of collaborations.
Speaker Change: Yeah.
Speaker Change: It.
Here's a catalog of our value add properties in four cities in Q1, 40% of the value in myeloma 'twenty two in housing bogs 17 alone and 21 in Copenhagen.
Operator: Here's a catalog of our value and properties in our four cities in Q1, 40% of the value in Malmö, 22% in Helsingborg, 17% in Lund and 21% in Copenhagen. As mentioned before, the diversity of different businesses in the region is a strength, but also the diversity in volume is interesting.
Speaker Change: As mentioned before the diversity of different businesses in the region is a strength, but also the diversity in volume is interesting.
Operator: Moving to Q1 and Q2, we have signed leases, single leases of more than 20,000 square meters each in the office segment. And especially in the Copenhagen area, we see more potential of interesting volume also ahead. The combination of small and larger tenants, this will also contribute to our strength. As of April, we added on $50,000 in work, in total contributing with $51,000. area, 8,000 square meters of land for industrial development in Lund and 12,000 square meters building rights for offices also in Lund. This portfolio will contribute with an estimated yearly operating surplus of 130 million SEK at the start.
Speaker Change: It was in Q1 and Q2, we have signed leases senior leases more than 20000 square meters. Each in the office segment.
Speaker Change: And especially in the Copenhagen area, we see more potential of interesting volume also ahead.
Speaker Change: They called.
Speaker Change: Small and larger tenants. This will also contribute to our strengths.
Speaker Change: Yeah.
Speaker Change: So in April we are so popular.
Speaker Change: Okay.
Speaker Change: Alright.
Speaker Change: Total contributing with 51000.
Speaker Change: Area.
Speaker Change: The square meters of land for industrial development alone and 12 square meters building rights for offices wholesale loans.
Speaker Change: This portfolio will contribute with an estimated year their operating stuff.
Speaker Change: Millions with Corona at the start.
Speaker Change: And here's the land areas included in the portfolio attribution columns.
Operator: and here's the land areas included in the portfolio. At Brysselkollen we estimate that we can build between 40 000 and 50 000 square meters industrial building and we'll see when the time for that will be right.
Speaker Change: We estimate that we can build between 40 and 50000 square meters industrial building.
Speaker Change: And we'll see one time, so that will be right.
Operator: And time for finances.
Speaker Change: And time for finances over to you of it.
Arvid: Over to you Arvid.
Arvid: Thank you very much Ulrika and good morning everyone. Looking at the. As Enrica noted earlier in the presentation, rental income amounted to 1,045,000,000 SEK, up half a percentage point versus the same quarter, 2024. Q1 2024 we had termination fees of 21 million Swedish kronor so that's you should bear that in mind in the comparison between the quarters and that income of course fed through downwards in the P&L during 2024. The operating surplus in Q1'25 amounted to 731,002% up versus the previous year. Happy to note that the operating surplus margin thereby was one percentage point higher than the corresponding quarter previous year.
Speaker Change: Thank you very much with rigor and good morning, everyone.
Speaker Change: Looking at the.
Speaker Change: Hmm.
Speaker Change: As <unk> noted.
Speaker Change: Earlier in the presentation ransom income amounted to 1.045 billion Swedish kroner.
Speaker Change: Our profit percentage points.
Speaker Change: The same quarter of 2024.
Speaker Change: Yeah.
Speaker Change: Q1, 'twenty four we had termination fees of 21 million Swedish kroner. So that's.
Speaker Change: You should bear that in mind in the comparison between the quarters and Thats income of course fed through downwards in the P&L jewelry.
Speaker Change: Before.
Speaker Change: The operating surplus.
Speaker Change: <unk> Q1, 'twenty five amounted to $731 million, 2% up versus the previous year.
Speaker Change: Happy to note that the operating surplus margin, thereby was one percentage points higher than the corresponding.
Speaker Change: Previous year.
Speaker Change: And income from property management amounted to $463 million up 9%.
Arvid: and income from property management amounted to 463 million up 9% as financial costs. have improved during the quarter. But positive value changes in the quarter, plus 69 million Swedish kronor, also a slight positive effect from change of valuation of our derivatives portfolio, plus 38 million Swedish kronor.
Speaker Change: Yes.
Speaker Change: Financial costs.
Speaker Change: <unk> has improved.
Speaker Change: In the quarter.
Speaker Change: But positive value changes in the quarter, plus 69 million Swedish kroner also slight positive effect from valuation change the valuation of our derivatives portfolio plus 38.
And all in all profit for the period of 431 million.
Arvid: an all-in-all profit for the period of $431 million. Looking at the balance sheets, investment properties have on a 12-month basis increased in value by 0.4 billion Swedish kronor to 59.1 billion. At the same time, equity increased by 0.8 billion Swedish kronor approximately to 23,500,000. and borrowings increased by 0.6 billion Swedish kronor to 29.3 billion. Translating these numbers into key ratios on the next slide, the equity-assets ratio now stands at 38.8%, unchanged versus 12 months previously. Our LTV stands at 49.5%, slightly lower than 12 months previously, and the interest cover ratio in the quarter has improved to 2.8 times.
Speaker Change: Looking at the balance sheets.
Speaker Change: Investment properties.
Speaker Change: Half.
Speaker Change: On a 12 month basis increased in value.
Speaker Change: 4 billion Swedish kroner to $59 1 billion.
Speaker Change: At the same time equity increased by <unk> eight.
8 billion Swedish kroner, approximately 223 billion 500.
Speaker Change: Our borrowings increased by <unk> 6 billion Swedish kroner to 29.3.
Speaker Change: William.
Speaker Change: Translating these numbers into two key ratios on the next slide.
Speaker Change: The equity assets ratio now stands at 38.
Speaker Change: <unk>.
Speaker Change: Changed versus 12 months previously.
Speaker Change: Our LTV stands at 49.5% slightly.
Speaker Change: Lower than 12 months previously and the interest coverage ratio in the quarter as improved to two eight times.
Arvid: 5 Q1 2024. And the EPRA, and you see the Peugeot numbers on the lower part of the slide, EPRA NRV now stands at 95.08, which is an increase of 9% if you pay dividend previous.
Speaker Change: Five Q1.
Speaker Change: 2024.
Speaker Change: And the upfront.
Speaker Change: Youll see the per share numbers.
Speaker Change: Lower.
Speaker Change: Part of the slide.
Speaker Change: <unk> now stands at 95, eight which is an increase of 9%.
Speaker Change: If you pay dividend.
Speaker Change: It was previously.
Arvid: And on the next slide, the long-term development of the APRA NRV. um and despite the For the past few years, the long-term trend is actually still very strong, with an average growth of 15% adjusted for paid dividends.
Speaker Change: And on the next slide.
Speaker Change: The long term development of the upper and RV.
Speaker Change:
Speaker Change: Despite this summer.
Speaker Change: For the past few years, the long term trend is actually still very strong with.
Speaker Change: Within that.
Speaker Change: So 15% adjusted for paid dividends.
Speaker Change: On the next slide.
Arvid: On the next slide. as equipment versus the previous few quarters. past few quarters. The load's come down a bit. and you're looking at the LTV, bear in mind that. We may, as Eureka said, from Granito, which is debt financed. So momentarily that, of course, affects the LTV upwards. in relation to EBITDA, and this ratio now stands at 10.0 times, which is a comparable as still in the Wihlborgs history.
Speaker Change: Okay.
Speaker Change: Chris.
Speaker Change: Yes.
Speaker Change: <unk> versus the.
Speaker Change: Previous few quarters.
Speaker Change: Our records.
Speaker Change: Past few quarters.
Speaker Change: Hello, it's come down a bit.
Speaker Change: Yeah.
Speaker Change: And just looking at the LTV bear in mind that.
Speaker Change: Okay.
Speaker Change: As Rico said from Nito.
Speaker Change: Is debt financed so momentarily that of course affects the LTV.
Speaker Change: Upwards.
Speaker Change: Yeah.
Speaker Change: Yeah.
Speaker Change: No.
Speaker Change: Yeah.
Speaker Change: Except in relation to EBITDA.
Speaker Change: This ratio now stands at 10.0 times.
Speaker Change: Which is.
Speaker Change: For <unk>.
Speaker Change: Yes.
Speaker Change: Still in the <unk> history.
Speaker Change: On the C.
Arvid: On the next... They are sources of financing as of end of March 25. And I think it's worth my note. That's during Q1. THE BUM track activity was reasonably high and over the past month. Note that the bond market is. Financial, economic, and political issues. around the globe.
Speaker Change: Our sources of financing as of end March 25.
Speaker Change: Yes.
Speaker Change: So.
Speaker Change: The Danish real mortgage system.
Speaker Change: Seven.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: I think it's worthwhile.
Speaker Change: Okay.
Speaker Change: So that's during Q1.
Speaker Change: Okay.
Speaker Change: Activity was reasonably high in <unk>.
Speaker Change: Hey, Bob.
Speaker Change: Over the past.
Speaker Change: Mike.
Speaker Change: Yeah.
Speaker Change: Note that the bond market is tight and since.
Speaker Change: Both financial economic political.
Speaker Change: Around the globe.
Speaker Change: Q.
Arvid: Thank you.
Arvid: Bye. Next slide, you can see the D. with the average that is fairly close to where the marginal cost of debt would be for us with the current STIBOR of about 0.3 percent. And on the next slide, you can see how the development of our fixed interest periods and our loan maturities have evolved over the past five years. Fixed interest period now is on average 2.3 years and the average loan maturity is 5.3 years.
Speaker Change: Okay.
Speaker Change: Okay great.
Speaker Change: You can see the data.
Speaker Change: With the average.
Speaker Change: Okay.
Speaker Change: 30th.
Speaker Change: Okay.
Speaker Change: That is fairly close to where the marginal cost of debt would be for us with the current cyber up about.
Speaker Change: 3%.
Speaker Change:
Speaker Change: And on the next slide you can see how the development of our fixed interest periods.
Speaker Change: The loan maturities have evolved over the fix.
Speaker Change: Fixed interest period now is oh.
Speaker Change: On a 2.3 years.
Speaker Change: And the average loan maturity is 5.3 years.
Arvid: Thank you for this previous quarter. Um This slide shows you our available funds, unutilized credit facilities plus liquid funds as of end March. The number is high. It's at 4.6 billion Swedish kronor. But as you're all aware, on the 1st of April, we acquired properties from Greneter for an amount of approximately 2.4 billion. It's of course good for us to be, to have preparedness. to be able to conclude such a. without any any major activities having to take place on the financing side. But so obviously the 4.6 will decrease also and with the expected payment of approximately 1 billion which will come in about a week's time.
Speaker Change: Thank you just the previous quarter.
Speaker Change: Hum.
Speaker Change: This slide shows you our available funds unutilized credit facilities, plus liquid funds as of end March.
The number is as high as it is at four 6 billion Swedish kroner, but as you're all aware on the first of April we acquired properties from greater for an amount of approximately $2 4 billion.
Speaker Change: Yes of course, but for us to be.
Speaker Change: Our preparedness.
Speaker Change: To be able to conclude such.
Speaker Change: Without any major activities, having to take place on the financing side, but so obviously the $4 six will decrease.
Speaker Change: Also and with the expected.
Speaker Change: Net of approximately $1 billion, which would come in about a week's time.
Ulrika: And with that, I hand back the words to you Ulrika.
Enrico: And with that I hand back the word to you Enrico.
Enrico: And I'll give you an update on our investments and progress on a quick overview of our largest project. During Q1, we have invested $638 million and it remains to be important and seeks to invest in approved projects are good volume also ahead.
Ulrika: I'll give you an update on our investments in progress and a quick overview of our largest projects. During Q1 we have invested $638 million and it remains $3,463,000 to invest in approved projects. A good volume also had... Quick improvement of the yield on cost continues and the ongoing portfolio secures also decent gain from projects. As always, a good mixture of refurbishments and new builds.
Enrico: A quick improvement off of a yield on cost continuous and ongoing portfolio secures also decent gain from project.
Enrico: As always a good mixture of refurbishment and new build.
Enrico: Now with the latest announcements made now in April a 15 year lease with what's left in Copenhagen about the projects that they had been to see they started earlier this year and we'll give a total refurbishment of one of the buildings that don't Spike Gosh, I guess 24000 square meters.
Ulrika: Left with the latest announcements made now in April, a 15-year lease with Per-Åslef in Copenhagen but the project that they've been receiving started earlier this year and will give a total refurbishment of one of the buildings that don't buy years ago. 24 000 square meters now fully let investment 231 million swedish krona and yield on cost a bit above six percent completion in Q1 Another announcement is the lease with Malmö University at Arvid Trite in Malmö. Arvid Trite is the name of the goddess of the sea, but the building will be located right between the sea and the central station, so it's the best possible location in Malmö.
Enrico: Now fully net investment of 231 million Swedish krona and yield on cost a bit above 6% completion in Q1 'twenty six.
Enrico: And other announcements its the lease with the University of bump it up in other parts of it that is the name of the goddess of the C. But the building will be located right between the central station. So it's the best possible location MLM.
Ulrika: A bit above 20 000 square meters for Malmö University and we won a competition a few years ago for developing this project together with the university and the municipality. Now the final agreement for construction and a 10 years lease is signed. Completion in Q4 27 and procurement of contractors is ongoing. In Lund we are building a new modern office right beside the center station, Posttorn at phase 2, 10 100 square meters, completion Q126, approximately 40 percent pre-let and yield on cost 6.5 percent. And at Vätet 1, also in Lund, we will refurbish and add on areas for our new tenant arm.
Enrico: It's about 20000 square meters former University and we won the competition a few years ago for developing this project together with University on the municipality.
Enrico: Now the final agreement for construction and 10 years lease assigned completion in Q4, 27 and procurement of contractors is ongoing.
Enrico: In <unk>, we are building a new modern office right beside incentives station postal, let's face to 10100 square meters Capetian Q1, 'twenty six approximately 40% pre let and give them cost six 5%.
Enrico: And after that that's one also inland, we will refurbish and add on areas for our new tenants arm.
Enrico: 5700 square meters and seven years lease investment one unfortunately.
Ulrika: 5,700 square metres and a seven-year lease. Investment 145 million, excluding value of the land and yield on cost a bit over 10%. And over 6.6% yield on cost, including in-going property value. A new modern facility, and we also improve the impression and the attractiveness of the whole ideal area.
Enrico: Excluding value of the land and you don't cost a bit over 10% and over six 6% dealer cost, including Ingo and property value.
Enrico: I see a modern facility and we also improved the impression on the attractiveness of the whole idea in area.
Enrico: In my lab and here, we have black Hornet, one stops are 884 million investment they've abated.
Ulrika: In Malmö and Hylje we have Black Hornet 1 Vista. 884 million investment. The mobility has already been completed and has a good occupancy. The offices will be completed end 25 and during 26. Yield on cost 6.2 percent and 25 percent pre-let for the office part. A bit lower than we aim for but the product is the best with great flexibility and the competition from built in the area is low.
Enrico: It means being completed and has a good occupancy the offices will be completed and 25 I'm doing 26 yield on cost of six 2% and 25% pre let for the office part a bit lower than we aim for the product is the best with great flexibility and.
Enrico: Competition from new build and the area is no.
An example or not.
Ulrika: An example are. Just an almost iconic building right beside the train station. 6,000 square meters, restaurant and absolute. model perspective.
Enrico: There's.
Enrico: That's an almost iconic building right beside the train station 6000 square meters rest.
Enrico: Restaurant.
Enrico: Absolutely.
Enrico: Mama perspective.
Enrico: Fisher.
Ulrika: Be sure to... and continue during 26. Enrichment for University of I'm the best one on the six hundred percent free. Eight years lease, completion in Q... have been able to continue. This project is for BPC completion Q2-26 and investment $79,300,600m2 and yield on cost 7%. Next to that, at Stora Ruobi, 32-22, $11,900m2 for note, completion in Q3-26, investment $263,000,000 and yield on cost also here is 7%. At Galoppen in Malmö, we build a facility for Kaldik, completion in Q325, approximately 10 000 m2 production, logistic and office. Total investment 264 million and yield on cost 7 percent and at Sunnanoa 1254 we built 17 000 square meters logistic 100 percent pre-let a 15 year lease with completion in Q4 25.
Enrico: And continue during 2006.
Enrico: Which meant for University of Miami.
Enrico: And the best one.
Enrico: 100% pre leased.
Enrico: Yes. Thank you.
Enrico: And I've been there.
Enrico: Okay.
Enrico: And this year's lease competition in <unk>.
Enrico: Okay.
Enrico: I've been able to continue.
Enrico: And on this project for BPC completion, Q2, 'twenty, six and investments of $7 million to $9 million.
Enrico: <unk> thousand 600 square meters and yield on cost of 7%.
Enrico: Next to that absolute Ottawa.
Enrico: So just to 'twenty two.
Enrico: 1900 square meters will note completion in Q3 26.
Speaker Change: <unk> 263 million of cost also had a 7%.
Speaker Change: It's kind of funny myeloma with a let's say that if a Catholic completion in Q3. It went five approximately 10000 square meter production logistic and office.
Speaker Change: Total investment of 264 million and yield on cost of 7% and that's sooner. Noah 12, 54, we built 70, the south also describing just logistic 100% pre let a 15 year lease with Campos completion in Q4 of 25 to enrage million invest in yield on cost.
Ulrika: 280 million invest and yield on cost improved close to 7 percent. In Copenhagen, we invest in a new school for NGG, a 25-year lease, 11,600 square meters and investment 290 million. Completion is expected at the end of 2025. And at Gyrosdraget, and here you tossed up the refurbishment for Nova continues, 62,000 square meters. Our investment is limited to 423 million, and completion is expected in Q4 2025. But Nova pays rent, also during the refurbishment period.
Speaker Change: Improved close to 7%.
Speaker Change: Yeah, Copenhagen, we invest in our new school for and you get a 25 years lease 11600 square meter and investment 219 million completion is expected at the end of 'twenty five and.
Speaker Change: And if you just drag each and how you tossed up their furbished meant for Nova continues 62000 square meters. Our investment is limited to $423 million and completion is expected in Q4, 'twenty five but normal pace rent also doing the refurbishment period.
Speaker Change: That was some of the ongoing projects left also mentioned something about future investment here, we have four possible projects alone has the more.
Ulrika: That was some of the ongoing projects. Let's also mention something about future investment. Here we have four possible projects in Lund and Helsingborg. We can develop some 70 000 square meters in the future. Zoning plans are approved. and on Västerbro in Lund. And here is some of the office possibilities in Malmö in the area of... continues to have high attention, of course.
Speaker Change: We can develop some 70000 square meters in the future something fans are proposing.
Speaker Change: And that's.
Speaker Change: That's the blow in loans.
Speaker Change: And here's some of the office possibilities in myeloma in the area of it.
Speaker Change: Continues to have high attention of course.
Speaker Change: And our summary of Q1 again rental income 1.045 billion income from property management up 9% to 463 million left lasting positive with <unk> 5 million and the continued high activity.
Ulrika: And our summary of Q1 again, rental income $1,045,000,000, income from property management up 9% to $463,000,000, left in positive with $35,000,000 and continued high activity. EBITDA at 10 times.
Speaker Change: The EBITDA at 10 times the acquisition of $2 4 billion from Gander store will be equal features now first of April.
Ulrika: The acquisition of 2.4 billion from Granitor will be completed now on 1st of April. Good quality and good location continues to be attractive, and we continue with our product investment with good results.
Speaker Change: Good quality and good location continues to be attractive and we continue with our product investments with good results.
Ulrika: So by that, we are open for questions.
Speaker Change: So by that we are open for questions.
Speaker Change: Okay.
Speaker Change: If you wish to ask a question please dial pound key sign.
Operator: If you wish to ask a question, please dial, pound key, 5, telephone number, 1-800-637-8170.
Speaker Change: Tell us.
Operator: Your question, please dial, pound key, 6, on your telephone keypad.
Speaker Change: Your question, please don't know pound key.
Speaker Change: <unk> on your telephone keypad.
Speaker Change: The next question comes from John <unk> from Van lunch at Kempen.
John Vong: The next question comes from John Vong from Van Lanschot Kempen. Please go ahead. Hi, good morning team. Thank you for taking the questions. You mentioned that occupancy is set to improve over... 2010 and well into 2026.
Speaker Change: Please go ahead.
Speaker Change: Alright, good morning team. Thank you for taking my questions you.
Speaker Change: And you mentioned that occupancy is set to improve over.
Speaker Change: And well into 2026, Oh, what's a more normalized occupancy you're right in your view once all these.
Operator: What's a more normalized occupancy rate in your view once all these lag between terminations and move-ins settles? And I think if you look at the long term development and looking at our whole portfolio, which now excluding projects on land, which now is at 90 percent, I mean, long term being at 92 is probably close to the long term average. Ninety three is good. Ninety four is rare. So we're a touch below where we would like to be. But but see good potential for improving the occupancy and twenty five and during twenty six.
Speaker Change: Laboratory and terminations on move ins or shuttle.
Speaker Change: I think if you look at the long term development.
Looking at our.
Speaker Change: Whole portfolio, which now excluding projects in language now is at 90%.
Speaker Change: I mean long term being at 92.
Speaker Change: It's probably close to the long term average.
Speaker Change: <unk> 93 as goods 94 is rare.
Speaker Change: So we're we're a touch below.
Speaker Change: We'd like to be.
Speaker Change: But see good potential for improving the occupancy.
Speaker Change: And 25% during 2006.
Speaker Change: And that's also keep in mind that for sure.
Operator: And let's also keep in mind that this is a test. Let's also keep in mind that as long as the rents are continuing picking up, that's, I mean, the demand is there for and our tenants are willing to pay for good quality and good location. So if we have some vacancy for some That's clear. And would 92% be a reasonable number for 2026? It depends on many things. So I think it's a two. but also cost.
Speaker Change: Let's also keep in mind that the as long as the Rams continuing picking up that's a I mean, the demand is there for them and all tenants are willing to pay for for good.
Speaker Change: The quality of the location. So if we have some vacancy.
Speaker Change: Yeah.
Okay, that's clear and then with 92% be a reasonable number for 2026.
Speaker Change: Okay.
Speaker Change: It depends on many things.
Speaker Change: Sorry.
Speaker Change: I think it's.
Speaker Change: Okay.
Speaker Change: But.
Speaker Change: Also.
Speaker Change: Ross.
Speaker Change: Yeah.
Speaker Change: So while we buy vacancy because we want to develop things over time so.
Operator: We buy vacancy because we want to develop things over time, so we project... Thank you. isn't the only thing that that points that possible for growth.
Speaker Change: Yeah.
Speaker Change: And Vegas.
Speaker Change: Yes.
Speaker Change: Mitch.
Speaker Change:
Speaker Change: Isn't the only thing that that points that's possible for.
Speaker Change: Gross.
Speaker Change: Not letting side, you mentioned high activity, both on Costa for the Mexico side or how should we read this.
Operator: You mentioned high activity. Is that both on the positive and negative side or how should we read this?
Speaker Change: And maybe also on the.
Operator: How long can- Feasible target. I think that, at the moment, we know that we would have a large termination now in Q1 from SAAB, and now when we have that, I think... Number of law is lower. But we see good. Act New Leases. The But it's out. to these numbers. I mean...
Speaker Change: How long.
Speaker Change: So.
Speaker Change: Okay.
Speaker Change: Feasible corridor.
Speaker Change: [laughter].
Speaker Change: I think that at the moment, we know that we would have a large termination now in Q1 from solved them now and we have that I think.
Speaker Change: Number of law.
Speaker Change: Okay.
Speaker Change: Ted.
Speaker Change: And it's is slower.
Speaker Change: But we'll see.
Speaker Change: Good.
Speaker Change: As new leases.
Speaker Change: The interest.
Speaker Change: Great.
Speaker Change: Oh.
Speaker Change: Uh huh.
Speaker Change: T cell numbers, it's I mean.
Operator: It takes years to before you. are very important for our business as a whole. So the answer to your question, how many quarters in a row that. What do you say? Bye-bye. Bye.
Speaker Change: If it takes years to to.
Speaker Change: Before you.
Speaker Change: Okay.
Speaker Change: That's very true for our business as a whole so the answer to your question, how many quarters in a row.
Speaker Change: <unk>.
Speaker Change: What do you say.
[laughter].
Speaker Change: Slide.
Operator: It would be extremely tricky to have this type of track record. and properties with vacancies. gradually can fill up. But our ambition or our strategy on continuing to grow remains. portfolio. We continue. to develop new properties, and occasionally we acquire properties. As so from the. obviously aim to continue this trend as long as possible.
Speaker Change: It would be.
Speaker Change: It's okay to have this type of track record.
Speaker Change: Thank you.
Speaker Change: Our properties with vacancies.
Speaker Change: Gradually kind of Ken can fill up.
Speaker Change: Our ambition or our strategy on.
Speaker Change: Continuing to growth remains Sami.
Speaker Change: As you.
Speaker Change: I think folio, we we continue.
Speaker Change: To develop new properties.
Speaker Change: And occasionally we acquired a property where we are.
Speaker Change: So.
Speaker Change: Obviously aim to continue this trend as long as possible.
Operator: I have mentioned this before but the most important thing with with netletting is actually for our our own organization so that we have the the tempo and the I mean, the awareness that it's very important for us, but But for the total business, looking at a longer period should be more relevant, maybe. But for us, we like the net letting measurement quarterly because it's, I mean, we like the tempo. Thank you.
Speaker Change: And I have mentioned this before but the most important thing with wind.
Speaker Change: Sure.
Basis, it's actually four out of our own organization.
Speaker Change: So that we have the the tempo and the.
Speaker Change: I mean.
Speaker Change: The awareness that is very important for us bus.
Speaker Change: But for the total business are looking at the longer period should be more relevant.
Speaker Change: Maybe but for us we like that and that's what the Union measurement quarterly because it's I mean, we like the temple.
Speaker Change: Okay.
Speaker Change: Okay clear thank you.
Speaker Change: Okay.
Speaker Change: The next question comes from Kayvon seven pool from Seb.
Kayvan Shervenpore: The next question comes from Kayvan Shervenpore from SEB.
Operator: Please go ahead. Okay, thank you.
Speaker Change: Please go ahead.
Matthew: Okay. Thank god slot, rather lost normally hear from Matthew.
Lars Norby: It's rather Lars Norby here from NCB, but the line was provided by a colleague of mine, so thank you for that. Some details on the Saab termination, those were, in fact, weren't those four different contracts and were all those... terminated as expected and what was the value of that? I think the total value was 31 or 34, 32 I believe, 32, so yes the termination came in as we expected. They had the possibility to add on some areas but that is not definitely a yes.
Speaker Change: <unk>.
Speaker Change: But the line was provided by a colleague of mine. So thank you for that.
Speaker Change: Some details on the Saab determination, thus for in fact once those four different contracts.
Speaker Change: All of those.
Speaker Change: Terminated as expected and what the value of that.
Speaker Change: I think the total value was 31 or 34, 32, I believe Hajj too.
Speaker Change: Perfect.
Speaker Change: And so so yes the termination.
Speaker Change: As we expected.
Speaker Change: They have to.
Speaker Change: To add some area, but that is not a definitely yes.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: I think they will stay with us as well.
Operator: I think they will stay with us in Malmo as well. Just so I understand it correctly, that was the effect, but are they going to stay for a while in some areas, or did I catch that the wrong way? All these leases... they will move in the early 2026 something and they my best I think that they will stay with one hub in in Malmö as well but the largest portion of employees will move to to Lund.
Speaker Change: Okay.
Speaker Change: Just so I understand that correctly.
That was the effect, but are they going to stay for a while on some areas or did I catch that runway.
Speaker Change: All of these leases.
Speaker Change: They will move in the early 20th went to take something.
Speaker Change: And they have my best I think that they will stay with one hub in in myeloma as well.
Speaker Change: But the largest.
Speaker Change: A portion of our employees would move too.
Speaker Change: Okay.
Speaker Change: Okay got it and then myeloma University in the press release that you put out I think you mentioned the basic ramp of some 69 million what about that other lease signed in early April in Denmark, with if I pronounce it correct.
Operator: Okay, good. And then Malmö University in that press release that you put out, I think you mentioned a basic rent of some 69 million. What about that other lease that was signed in early April in Denmark with, if I pronounce it correct, Årslast? What's the basic rent of that one? at Årslöv and that is not included in the in the report numbers because that was signed in April. So the rest of the volume in signed leases for Q1 is without parole services. Absolutely, but what's the basic ramp of the Oslo at the 24,000 square meters in Denmark?
Speaker Change: What's the basic breath of Apple pay.
Speaker Change: Yes.
Speaker Change: And that is not being included in the in the report numbers because that was signed in April.
Speaker Change: Alright.
Ravi: Remember Ravi so that the rest of the volume in signed leases.
Ravi: For Q1 is without pedals.
Ravi: Okay.
Absolutely, but what's the what's the basic ramped up.
Ravi: They are still up to 24000 square meters in Denmark lets see if I can find is fair.
Operator: Let's see if I can find it here. I think I will. It's in Swedish kronor, it's just above 30 million.
Ravi: No.
Ravi: Okay.
Ravi: Oh.
Ravi: Yeah.
Ravi: Okay.
Ravi: Okay. That's helpful.
Ravi: Alright.
Ravi: Awesome.
Ravi: Good morning.
Ravi: Let's thank everyone.
Ravi: It's.
Ravi: In Swedish kronor, it's just above $30 million.
Ravi: Okay.
Operator: Okay, thank you.
Ravi: Okay. Thank you and just a final question quick one on transactions you are on the stream transaction ports.
Operator: Just a final question, quick one on transactions. You obviously made a big transaction that portfolio of some 2.4 billion came on board on the 1st of April.
Ravi: Portfolio of $2 4 billion come onboard first of April.
Operator: So are you done for 2025 or what do you expect for the rest of the year on transactions? No, you never know. We continue to look at different kind of interesting things. So let's be open-minded.
Ravi: So are you done for.
Ravi: 25, or what do you expect for the rest of the year, new I've ever known Com transactions.
Ravi: Now you never know.
Ravi: We continue to look at the different kind of interesting thing.
Ravi: So, let's say open minded.
Ravi: Okay.
Operator: Okay, thank you.
Ravi: Okay. Thank you.
Ravi: Okay.
Ravi: Let's see.
Yes.
Marcus Henriksen: The next question comes from Marcus Henriksen from ABG Sundal Collier. Please go ahead. Thank you. Good morning. First, the question on you have your table with the rental income as of 1st of April, the one excluding projects. It's that. $1450,000 and it declined 1.3% q1 q and your currency rate declined 30 basis points q1 q the question is this all Sx driven or also driven by renegotiation I mean, you have quite a large, I don't have the exact number in my head, but you have quite a large FX effects in this table. The Swedish corona to the Danish corona was, I believe, 154 at the end of December and 145 at the end of March.
Speaker Change: The next question comes from Mark is Henriksen from a BG sundial calia. Please.
Speaker Change: Please go ahead.
Speaker Change: Thank you and good morning.
Speaker Change: First a question on <unk>.
Speaker Change: Your table with.
Speaker Change: Rental income is so first of April the one excluding project.
Speaker Change: 4050 <unk>.
Speaker Change: One 3% Q on Q.
Speaker Change: So rate declined 30 basis points Q on Q. So the question is is this all FX driven or so driven by renegotiated shelf.
Speaker Change: I mean, you have quite a lot I don't have the exact number in my head, but you have quite a large FX effects in this table.
Speaker Change: The the Swedish kroner to the Danish Krona was I believe 154 at the end of December and $1 45 at the end of March.
Speaker Change: Yeah.
Operator: So that makes out the bulk of, I mean, if you look at the Copenhagen portfolio in this table, you will see quite large differences driven by effect. Yes, I see a decline there. So it's not driven by renegotiations mainly? Clear, clear.
Speaker Change: So that.
Speaker Change: It makes up the bulk of Av Av.
Speaker Change: Yeah.
Speaker Change: If you look at the Copenhagen portfolio in this table you will see quite a lot.
Speaker Change: It's driven by FX.
Speaker Change: Yes, I'd say a decline that sorry, it's not.
Speaker Change: Driven by our renegotiations, mainly FX.
Speaker Change: Sure.
Operator: Then a follow-up on the Per-Årslef, just curious on the whole project. It used to be leased out, as you mentioned, to Danske Bank and the rent was 29 million back then and then you rented out to Byggningsstyrelsen and now Per-Årslef and you mentioned a rent of around 30 million or just above 30 million in Swedish krona and my 29 million is Danish krona. of total refurbishments will you do for the remaining part? You have around 36,000 square meter leased out now and how can you see such a huge lift? What type of investments are you doing there since the rent per square meter used to be very low?
Speaker Change: And then.
Speaker Change: And then a follow up.
Speaker Change: Pat or less just curious on the whole project.
Speaker Change: It used to be at least after few months of 2000 Goodbye.
Speaker Change: Around plus 29 million backed up and maybe ramp that up to big next era of southern Alberta, or lessen your Madison around of around 30 million or just above <unk>.
Speaker Change: In Swedish krona.
Speaker Change: Of course $29 million.
Speaker Change: And this corona.
Speaker Change: What type of.
Speaker Change: Of total Refurbishments will lead to for the remaining parts you have around 36000 square meter stockpile.
Speaker Change: How can I this is such a hugely.
Speaker Change: What type of investments are you doing that since the ramp prescribe it they used to be very low.
Speaker Change:
Operator: I think that this moment we're in today, when that area has really developed well and the attractiveness has raised, we started this project early, late 2020. for early 25 aiming for made it to a multi-tenant building. So this is just one of the buildings that Danske Bank left. and uh... sometimes after a few months in that project. Perlstrath decided to be interested in the whole area. for the rest of the Approximately the same, you just have to Tempo. So. So we get a good yield on cost for the refurbishment cost we put in there. Are we happy with that also for the rest of the property?
Speaker Change: I think that the.
Speaker Change: This no one's wearing today when when that area has really developed a well out of the attractiveness has raised and we started this project.
Speaker Change: Late 'twenty.
Speaker Change: For early 'twenty five mm aiming for made it to a multi tenant.
Speaker Change: Building. So this is just one of the buildings that ask your bank left.
Speaker Change: And.
Speaker Change: Sometimes after a few months in that project.
Speaker Change: Carlos has decided to the interests.
Speaker Change: Yeah.
Speaker Change: Right.
Speaker Change: It's Paul.
Speaker Change: The.
Speaker Change: Approximately the same do you just have to.
Speaker Change: Temple.
Speaker Change: No.
Speaker Change: So we get a good.
Yield on cost for the refurbishment cost we put in there.
Speaker Change:
Speaker Change: Yes.
Speaker Change: Is that.
Speaker Change: Are we happy with that are also part of the rest of the property and at the same time we are.
Operator: And in the same time, we are. We are working further with the positive to give a higher density to the area as a whole, with more building opportunities at the land that we own. But also that thing has to go in the tempo that fits the municipality and the surroundings, of course. I have had help from the Lättbanan with a new station. you know, things are moving. And when investments come to an area, things happen there. I don't have any prognosis on timing effect for the last buildings there, but good interest.
Speaker Change: We are working further with the positive to give a higher density to the area as a whole with more building opportunities.
Speaker Change: But we as we outlined.
Speaker Change: But.
Also that thing has to go in there in the tempo that the fifth that municipality in the surroundings of course.
Speaker Change: Have had help from the less bond with a new station just.
Speaker Change: Sorry.
Speaker Change: Hum.
You know things are moving and when investments come to an area things happened there so.
Speaker Change: I don't have any prognosis on timing effects, Paul Paul the last buildings there but.
Speaker Change: Good interest.
Speaker Change: Thank you for the color, what's just very interested in.
Operator: Thank you for the call, I was just very interested in fairly good development there. That's a very high level for a Q1 in a historical perspective. Can you usually share guidance for us? 25, should we expect similar seasonal patterns as historically? Any help? in Q1 or Q4, that is not, I mean, it's more in the tempo, in the process of the ongoing project. So I expect the volume to continue approximately at this level. All right, thank you for that.
Fairly fairly good development there.
Speaker Change: Yes.
Speaker Change: Yeah.
Speaker Change: Okay, great maybe on here in Q1.
Speaker Change: Very high level for our queue up.
Speaker Change: <unk> perspective.
Speaker Change: Kent, you usually share our guidance.
Speaker Change: Okay.
Speaker Change: 25 should we expect similar seasonal pattern historically.
Speaker Change: Thanks Al.
Speaker Change: Okay.
Speaker Change: July in in.
Speaker Change: In Q1 or Q4 that is not a I mean this morning in the temp when they're in the process on the ongoing projects. So I expect the volume to continue approximately at this this level.
Speaker Change: Yeah.
Speaker Change: Alright, thank you for that.
Speaker Change: Okay.
Speaker Change: What is the problem.
Operator: What is the link to sneak on? the Danish mortgage system and the bond market for Wihlborgs. Hello. of those markets. I'd say that the market is favorable, the banks are willing to lend and six months ago is a bit tighter, a bit lower bank margins than six months ago. The Danish mortgage system continues to work. six-month period. One must have one in my presentation. And I think it's, I mean. It happens somewhere else in the world and suddenly everybody gets worried and spreads go wider. Generally, the bond market versus a year ago, of course, looks a lot better and is So a financing option for us, the way the way markets work today.
Speaker Change: The Danish mortgage system, the bond market for these books.
Speaker Change: Okay.
Speaker Change: All of.
Speaker Change: Those markets.
Speaker Change: I'd say that.
Speaker Change: Market is.
Speaker Change: Favorable as the banks are willing to lend.
Speaker Change: And Marty.
Speaker Change: Yes.
Speaker Change: Six months ago.
Speaker Change: It is a bit tighter bits lower bank margins.
Speaker Change: Six months.
Speaker Change: The Danish mortgage.
The system continues to work.
Speaker Change: This six month period.
Speaker Change: Hi, Mike.
Speaker Change: And in my presentation.
Speaker Change: And I think it I mean.
Speaker Change: Okay.
Speaker Change: That happens.
Speaker Change: It happens somewhere else in the world and suddenly everybody gets worse.
Speaker Change: And.
Speaker Change: <unk> go wider.
Speaker Change: But.
Speaker Change: Generally the bond market versus a year ago of course.
Speaker Change: A lot better than this.
Speaker Change: Yeah.
Speaker Change: So in financing option for us.
Speaker Change: The way markets work today.
Speaker Change: Yeah.
Operator: And for the Danish system that was similar as for the... I mean, the system works, works well. Okay, okay.
Speaker Change: For the Danish system that was similar for the Max.
Speaker Change: I mean that the system works well.
Speaker Change: Steve.
Speaker Change: Okay. Okay.
Operator: The last question, you highlight increased vacancies, you're seeing increase in industry. You used to be above 90% on both offices and logistics. So first, what has happened? What is the current status? And are you initiating any type of measures? More and more personnel policing? Or is the petition just high because of new construction? Or what's going on? And what's your type of measures? I think on the logistics side, the competition is high because of new constructions. We have been able to... is the quality in some of some properties as we did for Nederman for example, very good investment.
Speaker Change: The last question.
Speaker Change: You highlight the inquiries that you're seeing.
Speaker Change: Okay great.
Speaker Change: Great.
Speaker Change: Thank you.
Speaker Change: Just a bit above.
Speaker Change: Both offices.
Speaker Change: Logistics, so first what does.
What is the current status.
Speaker Change: Are you going to shipping any type of measure as more and more personnel for leasing or more expertise.
Speaker Change: It's high because of new construction or what's going on what's your type of measures.
Speaker Change: I think on the logistics side the competition is high because of new constructions.
Speaker Change:
Speaker Change: We have been able to.
Speaker Change: Uh huh.
Speaker Change: Is the quality in some.
Speaker Change: Some properties as we did for them their demands for example, very good investments.
Speaker Change: And I think that we will see more of that transform mm area thing too.
Operator: and I think that we will see more of that transform areas into a higher level of quality and shooting different kind of businesses in that. We also see transforming parts of the portfolio areas that will be something else in the future. or how to form industrial areas. We can just keep that going for. couple of more years until that development can can start so it's a bit of this and that. The Berga area continues to be very good and to work both with. and fittings for new tenants in the unit we have today. and regarding vacancies in the office portfolio in Helsingborg.
Speaker Change: Higher level.
Speaker Change: All right.
Speaker Change: Our quality and she is a different kind of businesses in that.
Speaker Change: We also see transforming parts of the portfolio areas that will be something else in there.
Speaker Change: Morehouse.
Speaker Change: Performance.
Speaker Change: Industrial areas.
Speaker Change: We can just to keep that going for.
Speaker Change: Oh, yes until that development can count start so it's it's been of late.
Speaker Change: On that.
Speaker Change: The Bay area continues to be have very good.
Speaker Change: And.
Speaker Change: We need to work both ways.
Speaker Change: Yeah.
Speaker Change: Fittings for four new tenants in the.
Speaker Change: We have.
Speaker Change: Today.
Speaker Change: And regarding vacancy is in the office portfolio on housing Borg yeah.
Operator: should be there. year affected that, we have also been affected consciously by acquiring a few years back the Hermes property, which is a large property where we have some vacancies which we're working with, but at the same time we're confident that we are the right owners of such a property and that we over time can develop that for the benefit both of ourselves and the market as a whole. And we have been quite successful filling that up with new tenants. TIA have moved out from. So, I think. when you're working well, but, um, okay.
Speaker Change: Sure.
Speaker Change: Okay.
Speaker Change: You're affected that we have also.
Speaker Change: Been affected consciously.
Speaker Change: By acquiring <unk>.
A few years back the Hermes property, which is a large property.
Speaker Change: Where we have.
Speaker Change: Some vacancies, which we're working with.
Speaker Change: But at the same time, we're confident that we are the right owners of such a property that we over time can develop that portfolio for the benefit of both of ourselves in the market as a whole.
Speaker Change: And we have been quite successful for filling that are holding us up with new tenants.
Speaker Change: Yeah have moved out from performance.
Speaker Change: Oh I think.
Speaker Change: When you're working well, but oh.
Speaker Change: Okay.
Speaker Change: Okay.
Operator: Okay, just a quick follow up, so if I get this correctly, if we split it up in kind of structural problem with demand versus that we have been and are in a recession, we see from either supply driven or demand driven and then maybe you have a structural tilt towards the demand as well. Is that something you experience in Helsingborg or is it mainly in accordance with the cyclic I think in a very small local perspective, some property owners could be in a more of a Maybe you could call that a structural problem when you're taking an area into a new development phase.
Speaker Change: Okay, and just a quick follow up follow up if so so if I guess.
Speaker Change: This correctly.
Speaker Change: If we split it up.
Speaker Change: Kind of structural.
Speaker Change: The problem with them versus.
Speaker Change: That's really a minority of the recession.
Speaker Change: Okay.
Speaker Change: So the supply driven or demand driven by that maybe you have a structural tilt towards the demand as well.
Speaker Change: That's something you have experience in healthy choice it mainly in accordance with the weight.
Mike: Thanks, Mike.
Ines: I think yeah, Ines nurse small local perspective.
Mike: Hum.
Mike: Cause convener.
Mike: Karla.
Mike: Maybe you could call that a structural problem.
Mike: Probably.
Mike: <unk> taken an area.
Mike: New discipline face.
Mike: Hum.
Operator: Otherwise, I think it's a If you look at the whole city, it's a part of a normal transforming. But of course, if you look into the total. of the, especially, Helsingborg will continue to be attractive, no end to that, but there has also been a quite large volume added to the market. and maybe the time for picking that up takes some time. Thank you for that. Those were my questions. Thank you.
Mike: Otherwise I think.
Mike: If you look at the whole city, it's a part of our normal transforming.
Mike:
Mike: But of course, if you look into that the total.
Mike: Needs of.
Mike: All the especially.
Mike:
Mike: Storage.
Mike: Healthy volume will continue to be attractive.
Mike: No end to that but there has also been a quite large volume added to the market.
Mike: And then maybe the time for picking that up and take some some time.
Mike: Yeah.
Mike: Thank you for that those are all my questions. Thank you.
Mike: Thank you.
Mike: Yeah.
Mike: Yeah.
Mike: The next question comes from Fredrik <unk> from Carnegie.
Frederick Cyan: The next question comes from Frederick Cyan from Carnegie. Please go ahead. Good morning Ulrika and Arvid. I only have two questions for you this morning.
Mike: Please go ahead.
Mike: Okay.
Speaker Change: Good morning, ladies and gentlemen, that's all we would have two questions for you. This morning, so starting off with the government the acquisition will not be meaningful way impacts your average cost of debt.
Operator: Starting off with the guarantee acquisition, will that in any meaningful way impact your average cost of debt? The new loans, will that be done? higher or lower than the 3.45 that you have at the end of the quarter. It will not impact the average cost of death materially. in any direction.
Mike: No new loans with that.
Speaker Change: The dominant.
Speaker Change: Okay.
Speaker Change: Higher or lower than the 345 that you have.
Speaker Change: At the end of the quarter.
Speaker Change: It will not impact the average cost of debt materially.
Speaker Change: And the only direction.
Speaker Change: And the direction.
Speaker Change: That's clear Okay and then the second question relates to income from database.
Operator: And then the second question relates to income from JV. It was fairly high for being a Q1. Were there any impacts from property revaluations in the quarter? It was slightly higher profits in one of our RJVs. But it's, I mean, it's not a huge amount, I would claim. I agree.
Speaker Change: It was fairly high for being in the Q1 weather.
Speaker Change: Impacts from property revaluations in the quarter.
Speaker Change: No.
Speaker Change: It was slot.
Speaker Change: Slightly higher profits and in one of our our Jv's.
Speaker Change: But it's.
Speaker Change: It's not a huge amount I would claim.
Speaker Change: Okay great.
Operator: That's all from me. Thank you.
Speaker Change: Thank you.
Speaker Change: Yes.
Speaker Change: Yes.
Speaker Change: Yeah.
Speaker Change: There are no more questions at this time, so I hand, the conference back to the speakers for any closing comments.
Operator: There are no more questions at this time, so I hand the conference back to the speakers for any closing comments. So thank you for questions and your attention.
Speaker Change: So thank you for your questions and your attention and as we have any written questions in and have no I have not received anything good.
Operator: Does we have any written questions? No, I have not received anything via email. Good.
Speaker Change: So then just got a message that there was some problem with the.
Operator: So then I just got a message that there was some problem with the sound, but the version that will be presented on the website afterwards will be corrected with a good sound. So sorry for that, but thank you for attention and wish you.
Speaker Change: The.
Speaker Change: Sound, but the version that will be presented on the website afterwards will be corrected with a good side. It sounds so sorry for that.
Speaker Change: But thank you for attention and.
Speaker Change: Sure.