Q2 2025 Wihlborgs Fastigheter AB Earnings Call
Operator: This call is being recorded.
This call is being recorded your line is muted.
Operator: Your line is muted.
Ulrika: Welcome to the presentation of Wihlborgs Q2 2025. This report we have some records, some repetition, and of course some news, but as a part of that we start with a celebration.
Speaker Change: Welcome to the presentation of <unk> Q2, 'twenty to 'twenty five.
This report we have some records.
Speaker Change: Repetition and of course, some news, but that's a part of that we stopped with a celebration.
Ulrika: Last year we celebrated 100 years as the company Wihlborgs and this quarter we have celebrated 20 years as a listed company and that might be worth some reflection. We often talk about focusing on growth and earnings capacity. What have we actually achieved? We started the 23rd of May 2005 with a profit value of 7 billion Swedish kronor and 20 years later we have grown to 63 billion without raising any new equity from our shareholders. During these 20 years, we have invested $20 billion in our project portfolio and gained an extra $5 billion in profit from these investments.
Speaker Change: Last year, we celebrated 100 years that the company did but at least we have celebrated 20 years as a listed company and that might be worth some predictions.
Speaker Change: We often talk about focusing on growth and earnings capacity.
Speaker Change: What have we actually achieved.
Speaker Change: We stopped at the 'twenty sort of made to something five where the profit about <unk> 7 billion Swedish krona and 20 years later, we have grown to 63 billion without raising any new equity from our shareholders.
Speaker Change: During the 20th.
Speaker Change: We have invested 20 billion in Unpredicted Palio and gained an extra 5 billion and profit from these investments. We have also made acquisitions at a value of 14 billion.
Ulrika: We have also made acquisitions at a value of $14 billion. We have 19 years in a row with increased dividend, a compound annual growth rate at 10.4 percent and in total 9 billion have been paid as dividend to our shareholders. Irrespectively, if you measure rental income, operating surplus or income from property management, we have achieved a compound annual growth rate of almost 10% over these 20 years. And the total return on the share with reinvested dividends has been 1,735% or annually 15.6%, well above the total stock-on-stock market.
Speaker Change: We have 19 years in a row with increased dividend compound annual growth rate of 10, 4% and in total 9 billion have been paid as dividend to our shareholders.
Speaker Change: Irrespective of if your metro rental income operating surplus or income from property management, we have achieved a compound annual growth rate of almost 10% over these 20 years.
Speaker Change: On the total return on the share with reinvested dividends has been 1735 per cent or annually 15, 6% well above the Tokyo stock on the stock market has generated.
Ulrika: Now, time for a summary of Q2. We have record in rental income, record in operating surplus, record in income from property management, record in acquisition, record in dividend, record in property value, completely as we expect from ourselves. Net letting positive at 24 million and the demand for good quality and good location remains and so does our potential for growth. from our own actions, of course, but based on the fundaments in our geography. Results for the first period, first half 2025, rental income up to 2,142,000,000, operating surplus increased to 1,544,000,000 and income for property management increased by 12% to 987,000,000.
Speaker Change: No time for a summary of Q2.
Speaker Change: We have record in rental income record in operating surplus record income from property management.
Speaker Change: Record in acquisition record in dividend record and property value.
Speaker Change: Clearly as we expect from ourselves.
Speaker Change: Nothing positive up $24 million on the demand for good quality and good location remains and so does our potential for Wes.
Speaker Change: But my own actions of course, but based on the fundamentals in our geography.
Speaker Change: Results for the first period in first half 'twenty five rental income up to 2.142 billion operating surplus increased two 1.544 billion on income for property management increased by 5% to $8 million to $987 million.
Ulrika: The result for the period amounts to $883 million, corresponding to 2.87 kronor per share, and Eppra NRV has increased by 10% to 94.35 kronor per share, adjusted for paid dividends.
Speaker Change: The result for the period amounts to 883 million corresponding to 2.8 to southern cone Crusher and nobody has increased by 10% to $94 35 per share adjusted for paid dividends.
Ulrika: A comparison of the rental income, first half 24 and first half 25. Indexation, plus 21 million. Acquisition, plus 47. Currency to effect, minus 14. Additional charges, plus 11. And completed project, new leases and renegotiation, plus 5 million. Higher vacancy today than a year ago, but during the fall and beginning of 2026, improvements from new leases will show. And the streak of positive net letting continues, plus 24 million in the quarter, plus 29 million for the period, and in total new leases at a yearly value of 235 million signed in the period. 41 quarters in a row and this quarter the majority of new leases come from existing portfolios.
Speaker Change: A comparison of the rental income first half 'twenty four and first half 'twenty five indexation, plus 2 million acquisition, plus 47 currency effect minus 14 additional charges plus 11 uncompleted project new leases on the negotiation.
Speaker Change: <unk> plus $5 million.
Speaker Change: However, you can see today than a year ago, but during the fall and beginning 26 improvement from new leases will show.
Speaker Change: On the strike I'll pass it didn't act letting continuous plus $24 million in the quarter, plus 29 million for the period and in total new leases are the yearly value of 235 million signed in the period.
Speaker Change: 41 quarters in a row on this quarter the majority of new leases come from existing portfolio.
Ulrika: Here are some of the tenants that we have signed during Q2. Per Årsleff at ABN Säve started the quarter well, but we also see good expansion from, for example, ARM in Lund. They continue their growth before they even have entered the first lease at Vätet 1, and growing demand from the security sector as Defensify and Cyber, who will also continue their growth.
Speaker Change: Here are some other tenants that we have signed during Q2 quite at Wassa up they've been in the survey started the quarter well, but we also see good expansion from example arm in loan they continue their growth before they even have entered the first lease up that with one.
Speaker Change: And growing demand from the security sector as defensive I am fiber, who will also continue their growth.
Ulrika: Here we have the net letting in a historical perspective. Lettings in green, termination in light blue and dark blue stacks are the net letting. The high volume with new and higher demand seems to continue. Our last goal was to beat the magic 40 quarters in a row, so the next goal is of course to reach 42.
Speaker Change: Hey, we have a net letting in historical perspective, lettings in green termination in light Blue and dark Blue stacks, all the net letting the high volume with new and higher demand seems to continue.
Speaker Change: Our last goal was to beat the magic 40 quarters in a row. So the next goal is of course to reach 42.
Ulrika: On the list are 10 largest tenants in alphabetic order, strong customers and they contribute with 90% of our rental income. 7 out of 10 are governmental tenants and the public sector contributes with 22% of rental income. Rental value as of 1st of April $4,810,000,000 per year plus 7.1% and rental income $4,330,000,000 plus 4.9%. Effects from acquisition, indexation and higher willingness to pay for the right quality. Looking at the like-for-like figures, all the properties we owned a year ago excluding projects compared with updated figures, we can see the rental value is up 2.1% and rental income is down 0.5%.
Speaker Change: On the list of our 10 largest tenants they not robotic order strong customers and they contribute with 90% of our rental income seven out of 10 now governmental tenants on the public sector disputes with 22% of rental income.
Speaker Change: Okay.
Speaker Change: Rental value also first of April 4.810 billion per year, plus at some 0.1% rental income 4.300 billion plus four 9% FX from acquisition indexation and higher willingness to pay for the right quality.
Speaker Change: Looking at the like for like figures all the properties, we owned a year ago, excluding projects compared with updated figures. We can see the rental value is a 2.1% rental income is down 0.5% there.
Ulrika: The growth in rental value is supported by indexation of 1.6% in Sweden and approximately 1% in Denmark. Lower rental income is an effect of higher vacancy and that comes partly from the timing effect with many new leases and a gap between moving in and out, but also higher vacancy in the market. In some areas, as the industrial portfolio in Helsingborg, I think that higher vacancy will follow us for a bit longer time. And in other areas, as in offices in Malmö, occupancy will pick up quite quickly when the market turns. we see very few new projects from competitors and my best estimate is that we can continue to take advantage from that.
Speaker Change: Growth in rental values supported by indexation of one 6% in Sweden, and approximately 1% in Denmark.
Speaker Change: Lower rental income as an effect of higher vacancy and that comes partially from the timing effect with many new leases on a GAAP between moving in and out but also higher vacancy in the market.
Speaker Change: In some areas as the industrial portfolio and helps me more I think that higher vacancy will follow us for a bit longer time and in other areas as in offices in myeloma occupancy will pick up quite quickly when the market turns.
Speaker Change: We see very few new projects from competitors and my best estimate is that we can continue to take advantage from that.
Ulrika: We know that our number will improve towards the end of 2025 and with continued good effects 2026 and this has already started with for example Tuvle and Malmö University entered their new leases in Malmö 1st of July.
Speaker Change: We know that our number will improve towards the end of 'twenty five and with continued good effect 26, and this has already started with for example to block bomber University entered their new leases in Walnut first of July.
Speaker Change: Yeah.
Ulrika: Let's look at changes in the market value of our properties. We started the year with 59 billion 168 million in accordance with our 100% external valuation. We have made acquisitions with add-on 2,552,000,000, investment 1,265,000,000, divestment minus 90,000,000, changes in valuation plus 312,000,000, and together with currency translations of minus 476,000,000, that's summarized to a value of 62,731,000,000 Swedish Krona. This quarter we have made extra external valuation by two different appraisers of approximately 20% of the portfolio value just as an extra checkup and the output from that is that our valuation is almost perfectly in line with their views.
Speaker Change: Let's look at changes in the market value of our properties. We started the year with 59.168 billion in accordance with a 100% external valuation.
Speaker Change: We have made acquisitions with add ons 2.552 billion investment 1.265 billion divestment minus 90 changes in valuation plus 312 million I'm together with currency translations of minus 476 million, that's summarized to a value of six.
Speaker Change: The 2 billion 700 that 1 million Swedish krona.
Speaker Change: This quarter, we have made extra external evaluation by two different appraisers are approximately 20% of the portfolio value just us an extra checkup. The output from that is that our valuation is almost perfectly in line with their views.
Ulrika: 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 with the occupancy rate is 90% excluding project and land with an operating surplus of 3,273,000,000 that gives a running yield of 5.6%. Fully let, 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. Also ahead. In the office portfolio, the market value is now over 50 billion, the occupancy rate is 91 percent, it's 92 in Malmö, improved to 89 in Helsingborg, 90 percent in Lund and 92 in Copenhagen.
Speaker Change: These figures that routing you show, how we actually perform in relation to devaluation. So this is not the valuation yield.
Speaker Change: For the whole portfolio with the occupancy rate is 90% excuse me project of land.
Speaker Change: With an operating surplus of 3.273 billion that gives the running yield of five 6%.
Speaker Change: On the 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 also go ahead.
Speaker Change: In the office portfolio the market value is now over 50 billion. The occupancy rate is 91% is 92 in myeloma improved to 89 and has seen boy, 90% alone and 92 in Copenhagen same total nonetheless year end and last report Baxalta.
Ulrika: Same total number as year-end and last report, but on the decimal a bit improved, and the signed leases mean that we will improve ahead during the fall and toward the The operating surplus from offices summarized to 2,730,000,000 and running yield of 5.4%, 6.2% fully left. Demand for logistic and production continues to be good in Malmö with an occupancy of 8.95%, lower in Helsingborg at 83%, 99% in Lund and 95% in Copenhagen. 88% occupancy rate as a whole with a running yield of 6.4%, 7.5% for Lund. and a total value of $8,474,000,000. As mentioned before, we continue to see harder competition in the third part logistic segments, quick changes in needs and higher vacancy as an effect of a lot new build facilities.
Speaker Change: The decimal a bit improved the signed leases means that we will improve our head during the fall and 26.
Speaker Change: The operating surplus from offices summarized at 2.730 billion unbundling yield of five 4% $6 two fully lapped.
Speaker Change: Demand for logistic and production continues to be good in myeloma with Nokia Ponzu, 895% lower in housing Board at 80, 399 alone and 95 in Copenhagen, H eight occupancy rate as a whole with a running yield of six 4% 747, 5%.
Speaker Change: And I took the value of $8.474 billion.
Speaker Change: As mentioned before we continued to see hard of competition in the third party logistics segments quick changes and needs and how your vacancy is in effect, our last new build facilities.
Ulrika: But our portfolio in Helsingborg still gives a decent running yield of 6.4% even with a high vacancy and the market as such continues to grow. The development of our total portfolio running yield, 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 2021.
Speaker Change: But our portfolio in house, you always give a decent running yield of 6.4% evil, even with a high vacancy and the market as such continues to grow.
Speaker Change: The development of our total portfolio running at five 6% brings stability not least since the portfolio overall has a high quality and good locations.
Speaker Change: As noted before a high increase of their money into 2021.
Ulrika: ESG results from Q2, certifications in Sweden offices continue up and Denmark has started the process in a good way, in the same way that we also continue with certifications in the industrial portfolio in Sweden. Energy consumption continues to decrease and we have a new target of maximum 75 kilowatt hours per square meter to be reached by 2030. As mentioned in the Q1 report regarding Omnibus, we will continue our process with most of the metrics of CSRD, but we will exclude some of the data points where our opinion is that the value of measurement is limited.
Speaker Change: ESG results from Q2 certifications in Sweden offices continue up and Denmark has started the process in a good way in the same way that we also continue with certifications in the industrial portfolio in Sweden.
Speaker Change: And did you call Samsung continues to decrease and we have a new target of maximum 75 kilowatt hours per square meters to be reached by 2030.
Speaker Change: As mentioned in the Q1 report regarding omnibus, we will continue our process with most of the metrics of CSR D. But we will exclude some of the data points, where our opinion is that the value of measurement is limited.
Ulrika: But for many of the areas, we have found a way where reporting actually can contribute to improving our operations.
Speaker Change: But for many of the areas. We have found a way we're reporting actually can contribute to improving our operations.
Speaker Change: Yeah.
Ulrika: Other sustainable highlights from Q2, Wihlborgs has been pointed out as one of Europe's climate leaders by the Financial Times. We have renewed the climate contract with the municipality of Malmö and not at least we have reduced the energy consumptions at Värdshuset 2 by 22 percent by adding on our own skilled organization. More improvements come, but 22% less consumption, almost without investments, is a good start. And we see that kind of improvements in the acquisition made the last year. We update the product, improve some technical standards and reduce energy consumption and increase leasing. Some is already done and there's more to come.
Speaker Change: Oh, the sustainable highlights from Q2 Big horse has been pointed out that's one of Europe's climate leader by the financial times.
Speaker Change: We have renewed the climate contract with the municipality of myeloma and not at least we have reduced the entity consumption that shows its two by 22% by adding on our own skilled organization.
Speaker Change: More improvement to come but twenty-two less ghansham consumption almost without investments is a good start.
Speaker Change: And we see that kind of improvements in the acquisition made the last year's I'm August summer he had to go to the investors that.
Speaker Change: We ought to taste the product improves some technical standard and reduce energy consumption and increased leasing.
Speaker Change: Some is already done and there's more to come.
Ulrika: First of April, we added on eight properties in Malmö, Lund and Helsingborg, in total contributing with 51,000 square metres of lettable area, 82,000 square metres of land for industrial development in Lund, and 12,000 square metres of building rights for offices, also in Lund. This portfolio will contribute with an estimated yearly operation surplus of $130 million at start. And here are the land areas included in the portfolio as shown before. At Brysselkolan we have estimated that we can build between 40 000 and 50 000 square meter industrial buildings.
Speaker Change: First in April we added an eight property in the mountain Malone, then has anymore and total contributing with 50000 square meter, let about area 82000 square meter land for industrial development in loan and 12000 square meter building bites for offices also inland.
Speaker Change: This portfolio will contribute with an estimated generally operations surplus of $130 million at the start.
Speaker Change: And here are the land areas, including in the portfolio as shown before.
Speaker Change: Brazil call them, we have estimated that we can build between 40 and 50000 square meter industrial building.
Ulrika: A catalogue of our value and properties in our four cities and Q2. 40% of the value in Malmö, 22% in Helsingborg, 17% in London, 20% in Copenhagen. And as mentioned before, the diversity of different businesses in the region is a strength, but also the diversity in volume is interesting. Both in Q1 and Q2, we have signed leases of more than 20,000 square meters each in the office segment. And especially in Copenhagen area, we see more potential of interesting volume ahead. The combination of many small and some larger tenants also build a strength.
Speaker Change: Our catalog of our value add properties and for citrus and Q2.
Speaker Change: 40% of the value in myeloma 22 in healthy more 17 inbound on 'twenty in Copenhagen.
Speaker Change: And as mentioned before the diversity of different businesses in the region is a strength, but also the diversity in volume it's interesting.
Speaker Change: Both in Q1 and Q2, we have signed leases on more than 20000 square meters. Each in the office segment.
Speaker Change: And especially in Copenhagen area, we see more potential of interesting volume ahead there.
Speaker Change: The combination of many small and some larger tenants also built our strength.
Speaker Change: Okay.
Ulrika: Our growth is of course related to the possibilities in our geography and at this picture we can see the employment growth in a comparison between Stockholm, Gothenburg, Malmö and rest of Sweden. Malmo have had a good growth and we have been able to meet that growing demand.
Speaker Change: Our growth is of course related to the possibilities in our geography and this picture we can see the employment growth in the comparison between Stockholm, Gothenburg myeloma unrest of Sweden.
Speaker Change: My mom had a good growth and we have been able to meet that growing demand.
Ulrika: Let me wrap up this part of the presentation with a quick update on the Öresund region. The Öresund bridge just turned 25 years, still young for a bridge and just in the beginning of its lifetime, but for Wihlborgs it has been central to our growth for two decades. Infrastructure drives development. The Danish government clearly sees this and they continued with their large-scale investments. The Ferman Belt link to Germany, now under construction, will open in 2029. That will strengthen the region's role as the northern gateway to Europe.
Speaker Change: Let me wrap up this part of the presentation with a quick update on the Arizona region. They are have some bridge just turned 25, yes, Tim young for our bridge and just in the beginning of his lifetime bought forbidden, but it has been central to our growth for two decades.
Speaker Change: Infrastructure drives developments the Danish government clearly sees this and they've continued with their large scale investments if I my belt linked to Germany now under construction will open in 2029.
Speaker Change: The strength of the region's throw us the northern gateway to Europe.
Ulrika: Just this week, the Swedish government appointed Alan Widman as Special Investigator. His task is to develop a joint Swedish-Danish mandate for a strategic study on capacity and redundancy across the ozone with a long-term view towards 2050. The proposal will be delivered in November, and that's a strong step forward. And separately, the Swedish Transport Administration is already analyzing future capacity for road, rail and maritime transport, including the potential for a fixed Helsingborg-Helsingö link. Meanwhile, cross-border integration is reaching record levels. In 2024, the integration index hit 234, up from 100 in 2001. More than 19 000 people now commute across the border for work.
Speaker Change: Just this week, the Swedish government appointed Allan Venmo, a special investigator.
Speaker Change: His task is to develop a joint Swedish Danish mandate for a strategic study on capacity and redundancy across the horizon with a long term view towards 2050.
Speaker Change: The proposal will be delivered in November and that is a strong step forward.
Speaker Change: Separately, the Swedish transport administration is already analyzing future capacity for road rail and maritime transport, including the potential for a fixed housing warehousing argument.
Speaker Change: Meanwhile, Cross border integration is reaching record levels in 2020 for the integration index hit 234 up from 100 and choose us in one.
Speaker Change: More than 90000 people now commute to cross the border for work.
Ulrika: And the daily train commutes have also reached all-time high, over 40,000 passengers a day, alongside monthly records for both car and passengers crossings. These developments support long-term growth for the region, but also for Wihlborgs.
Speaker Change: The daily train commutes have also reached all time high of over 40000 passengers a day alongside monthly records for both car and passengers across.
Speaker Change: These developments support long term growth for the region, but also for big box.
Ulrika: And time for financials. Over to you, Arvid.
Speaker Change: Time for financials over to you artists.
Arvid: Thank you very much, Ulrika, and good morning, everyone. And if we look at the income statement for the first, sorry, for the second quarter 2025, You can see that rental income amounted to $1,097,000,000 up 6% versus the corresponding quarter during 2024. We had an operating surplus of 813 million kroner, also up 6%. and the income from property management was up a full 14% to 524 million in the quarter. And all these three numbers, as Ulrika mentioned, are actually record figures for an individual quarter for Wihlborgs. with positive value changes in the quarter of $243 million.
Speaker Change: Thank you very much with rigor and good morning, everyone.
Speaker Change: And if we look at the income statement for the first sorry for the second quarter of 2025.
Speaker Change: You can see that rental income amounted to $1.097 billion up 6% versus the.
Speaker Change: Corresponding quarter during 2024.
Speaker Change: And we have an operating surplus of 813 million kronor also up 6%.
Speaker Change: And the income from our property management was off before the 14% to 524 million in the quarter.
Speaker Change: And all of these three numbers as Enrique mentioned were actually record figures for an individual quarter four for gearbox.
Speaker Change: And what pushed the value changes in the quarter of $243 million.
Arvid: Um no differences in the underlying assumptions in the valuations, but rather a few minor effects from projects and from the net leasing, but minor changes overall.
Speaker Change: No differences in the underlying assumptions in the valuations.
Speaker Change: But rather a few minor effects from projects and from the net leasing.
Speaker Change: But my minor changes over all.
Arvid: And if we sum up, we had a profit for the period of 452 million Swedish kronor in Q2.
Speaker Change: And if we sum up we had a profit for the period of 452 million Swedish kroner in Q2.
Speaker Change: Okay.
Arvid: Looking at the balance sheet. Property value now amounts to 62.7 billion Swedish kronor, that's up 5.6 billion versus the same versus 12 months previously. At the same time, equity grew by almost a billion, despite paying out a billion to shareholders. And our borrowings at 33.3 billion Swedish kronor was up 3.6 billion in a 12-month perspective. Translating this into key figures, our equity assets ratio stands at 35.8%. and the leverage now is 53%. That is up somewhat over the past quarter, as expected since we chose to debt finance the acquisition and we also paid a dividend of a billion during the quarter.
Speaker Change: Looking at the balance sheets.
Speaker Change: Yeah.
Speaker Change: Property value now amounts to 62.7 billion Swedish kroner.
Speaker Change: Oh.
Speaker Change: $5 6 billion.
Speaker Change: Buses are the same.
Speaker Change: Versus 12 months previously.
Speaker Change: At the same time equity grew by almost 1 billion, despite paying out a 1 billion to shareholders.
Speaker Change: And our borrowings at 33.3 billion Swedish kroner was up $3 6 billion.
Speaker Change: In a 12 month perspective.
Speaker Change: Yeah.
Speaker Change: Translating this into key figures are equity assets ratio stands at 35, 8%.
Speaker Change: And the leverage now is 53%.
Speaker Change: That is up somewhat over the past quarter.
Speaker Change: As expected since we chose to debt finance the acquisition and we also paid a dividend.
Speaker Change: Of 1 billion during the quarter.
Arvid: We see the LTV gradually moving downwards from here as a result of our cash flow earnings. The interest cover ratio during the first half was 2.8, in Q2 individually it was actually 2.9 times, so the development of the interest cover ratio is positive. We had an EPRA NRV at the end of Q2 of 94.35 kroner per share and that is up 10% versus 12 months previously adjusted for paid dividends. The EPRA NRV per share, the development you can see on this slide in the historic perspective and over this time period since 2009 we've had an annual average growth of 15% adjusted for paid dividend.
Speaker Change: And we see the LTV gradually moving downwards from here as a result of.
Speaker Change: Of our cash flow earnings basically.
Speaker Change: The interest cover ratio is doing.
Speaker Change: The first half was $2 eight in Q2 individually it was actually 2.9 times.
Speaker Change: So the development of the interest cover ratio.
Speaker Change: It is positive.
Speaker Change: We had an error in our V. At the end of Q2 of 94 point 35 kroner pichette.
Speaker Change: And.
Speaker Change: That is up 10% versus 12 months previously adjusted from paid dividend.
Speaker Change: The abrupt and RV per share.
Speaker Change: These developments you can see on this slide and the historic perspective.
Speaker Change: And over this time period since 2009, we've had.
Speaker Change: Annual average growth of 15% adjusted for paid dividend.
Arvid: The financial ratios in a historic perspective. is shown on this slide. The interest cover ratio now picking up after the sharp interest increase which started here in 2022, and that is good. The equity assets ratio in a historic perspective is still on comfortable levels for us, and that actually goes for the LTV as well. versus the limitations we've set up for ourselves. However, from the 53% LTV, our objective is, of course, to bring that downward slightly from here. The net debt in relation to EBITDA is still on a strong level, 10.1 times at the end of Q2.
Speaker Change: The financial ratios in a historic perspective.
Speaker Change: As shown on this slide.
Speaker Change: The interest cover ratio now picking up after the sharp interest increase which started during 2022.
Speaker Change: And that is good.
Speaker Change: The equity assets ratio in a historic perspective is still on comfortable levels for us and that actually goes for the LTV as well.
Speaker Change: Versus the limitations, we have set up for ourselves.
Speaker Change: However.
Speaker Change: From the 53% LTV. Our objective is of course to bring that downward slightly from here.
Speaker Change: Yeah.
Speaker Change: The net debt.
Speaker Change: In relation to EBITDA.
Speaker Change: It is still on a strong level 10.1 times at the end of Q2.
Arvid: And that, of course, takes into account the cash earnings capacity that we have and that it remains our prime focus.
Speaker Change: And that of course, it takes into account the cash earnings capacity that we have and that remains our prime focus.
Arvid: On the next slide, you can see the sources of financing. We now have 50% of our financing from bilateral bank agreements with Swedish Nordic banks. bank margins are moving in the right directions for us as a borrower. and access to capital is quite advantageous, I would say. Bond financing is now 16% of the total, and also the bond market has over the past few months. Well, still been a bit volatile, but generally developed in a very positive way. So we can we can we have access to bond financing at attractive levels currently. And we have 34% of our financing from the Danish Real Mortgage System, which continues to work in a stable way.
Speaker Change: On the next slide you can see the sources of financing, we now have 50% of our our financing from a bilateral bank agreements with Swedish Nordic banks.
Speaker Change: Bank margins are moving in the right directions for them for us as a borrower.
Speaker Change: And access to capital is quite advantageous I would I would say.
Speaker Change: Our bond financing is now 16% of the total.
Speaker Change: And also the bond markets has over the past few months.
Speaker Change: While still been a bit volatile bump.
Speaker Change: Generally developed in in a very positive way and so.
Speaker Change: So we can we can with access to bond financing at attractive levels currently.
Speaker Change: And we have 34% of our financing from the Danish real mortgage system, which continues to work in a stable way.
Speaker Change: Yeah.
Arvid: On the next slide, you can see the details of our loan portfolio. The average interest rate is now 3.29%. You can note looking into the future that we have some attractive interest rate swaps expiring both in Q3 and in Q4. At the same time, we have during the second half of 2025, a few bank renegotiations, where we We expect the margin development to be positive for us as a borrower, that is margins moving downwards. On the next slide, you can see the development of the fixed interest period, which now stands at 2.4 years, quite in line with our interest rate risk management policy.
Speaker Change: On the next slide you can see the details of our loan portfolio and.
Speaker Change: The average interest rate is now three points 29%.
Speaker Change: You can note it.
Speaker Change: Looking into the future that we have.
Speaker Change: Some attractive interest rates swaps expiring both in Q3 and in Q4.
Speaker Change: At the same time, we have during the second half of 2025.
Speaker Change: A few bank.
Speaker Change: Bank renegotiations.
Speaker Change: Where are we.
Speaker Change: Expect the margin developments to be positive for us as a borrower that is margins moving downwards.
Speaker Change: And on the next slide you can see are the.
Speaker Change: The debate about development of the fixed interest period, which now stands at 2.4, yes quite in line with our interest rate risk management policy.
Arvid: And we have a loan maturity moving downwards a bit to 4.7 years. And that has been affected, of course, by us adding some new debt. in relation to the acquisition made in Q2, and that debt has had a slightly shorter loan maturity than our average.
Speaker Change: And wherever loan maturity moving downwards, a bit to $4 seven yes.
Speaker Change: And that has been affected of course by us, adding some some new debt.
Speaker Change: In relation to the acquisition made in Q2.
Speaker Change: And that that has had a slightly shorter loan maturity than our average.
Speaker Change: Yeah.
Arvid: And finally, looking at available funds, we had a very high number at the end of Q1, but as you're quite aware, on the 1st of April we paid approximately 2.4 billion for the acquisition from Granito, and in May we paid a billion in dividends. So available capacity has gone down. We've increased back facilities somewhat during the quarter. So available funds is now 2.5 billion, which is a comfortable level in the long-term perspective.
Speaker Change: And finally looking at available funds we had.
Speaker Change: A very high number at the end of Q1, but as you're quite aware on the first of April we paid approximately 2.4 billion for the acquisition from Nito and in May we paid $1 billion in dividends.
Speaker Change: So available capacity has gone down with increased bank facilities.
Speaker Change: Some worked during the quarter.
Speaker Change: So available funds is now $2 5 billion, which is a comfortable level in the long term perspective.
Ulrika: And with that, I'll hand over the word back to you, Ulrika. Thank you and an update on our investments in progress and a quick overview of our largest project. During the period we have invested 1,265,000,000 and it remains 3,132,000,000 to invest in approved projects, a good volume also ahead. The quick improvement of yield on costs continues, and the ongoing portfolio secures also decent gain from projects, a good mix of refurbishments and new builds.
Speaker Change: And with that I'll hand over the word back to you Rico.
Speaker Change: Thank you and an update on our investments and progress on a quick overview of our largest projects.
Speaker Change: During the period, we have invested 1.265 billion and it remains 3.132 billion to invest in approved projects are good volume also ahead there.
Speaker Change: They click improvement of yield on cost continues on the ongoing portfolio secures also decent gain from projects a good mix of refurbishment and new build.
Ulrika: Let's start in Copenhagen with our project at Eibundsgivet. In the beginning planned and decided for a multi-tenant transformation but with the 15-year lease with Per-Åslef turned into a single tenant building. 24 000 square meters, investment 231 million Swedish kronor and yield on cost a bit above 6%. Completion in Q1 2016.
Speaker Change: Let's start in Copenhagen, with our project at eight in Sydney.
Speaker Change: In the beginning planned and decided for most tenants transformation backed with a 15 year lease with parallel theft turned into a single tenant building.
Speaker Change: 24000 square meters investment two answers 1 million Swedish krona I am done.
Speaker Change: A bit above 6% completion in Q1 'twenty six.
Ulrika: The large project at Amfittrita in Malmö has started off really well, a bit about 20 000 m2 for Malmö University. We have started at site with selective deconstruction of the building to enable reuse of parts of the existing building in the new one, and we expect building permission in September. Zoning plan is approved and procurement of contractors is ongoing in a very good way.
Speaker Change: The large project that off it since they started off really well a bit about 20000 square meters for Mama University. We have started up site with selective <unk> construction of the building to enable the use of part of the existing building in the new one and we expect building permission in September so.
Speaker Change: The plan is approved and procurement our contractors is ongoing in a very good way.
Ulrika: In Lund we're building a new modern office right beside the central station post-tornet phase 2 10 100 square meters yield on cost 6.5 percent and completion q2 25 26 q2 And at Vätö, also in Lund, we refurbish and add on areas for our new tenant arm. 5,700 square meters at the start and they now have added on some extra. Seven years 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 ARM has already signed, as mentioned, additional areas.
Speaker Change: In the end, we're building a new modern office right beside the central station postpone upsize to 10100 square meters HELOC or six 5% and completion in Q2, 'twenty five 'twenty six Q2 'twenty six.
Speaker Change: And the fact that one also alone we refurbish and add on areas for a new tenant arm.
Speaker Change: <unk> thousand 700 square meters. That's a start and then I'll have added on some extra seven years lease investment 105 million, excluding value of the land and it doesn't cost a bit over 10% and over six 6% yield on cost, including Ingo impact corporate value.
Speaker Change: New modern facility and RMS already signed as mentioned additional areas.
Speaker Change: Okay.
Ulrika: In Malmö and Hylje we have Black Hornet 1 Vista. An 884 million investment. The mobility hub has already been completed and has a good occupancy. The office will be completed end 25 and during 26. Yield on cost 6.2 percent and 35 percent pre-let for the office part at end of June. But now in July we signed additional 800-900 square meters at seven-year lease with the public tenant. So even if patience is important, the movement is in the right direction. The product is the best with great flexibility, and the competition from your builds in the area is low.
Speaker Change: In myeloma and here, we have black Hornet Wanda Vista.
Speaker Change: And 884 million investment in mobility App has already been completed and that's a good occupancy.
Speaker Change: The office will be completed and 25 and doing 26 yield on cost of six 2% and 35% pre lets for the office part at the end of June but now in July we signed additional eight 900 square meters.
Speaker Change: Seven year lease with them public tenants.
Speaker Change: So even if patients is important the movement isn't the right direction. The product is the best with great flexibility and the competition from new builds in the area is no.
Ulrika: An example of refurbishment in Malmö is Boschhuset 1, this is an almost iconic building right beside the train station. 6000 square meter office, restaurant and co-working and absolutely top brand in a Malmö perspective. Completion in Q4'25 and moving in will continue during Q26, pre-let Q95.
Speaker Change: An example of refurbishment and Mama is Bush's said, one and this is an almost iconic building right beside the fifth train station 6000 square meter office restaurant that co working and absolutely top brands in the mountains perspective complete.
Speaker Change: Completion in Q4, 25, and moving and we'll continue doing 26 pre let 95%.
Ulrika: In the Dockern area, the refurbishment for University of Malmö and the police education has been completed as of 1st of July. Yildon cost approximately 11 percent, and the same thing with Dockport 1, headquarters for Thule. They entered the building first of July. A smaller investment, but a great result and a good impact for the area.
Speaker Change: In the docking area the refurbishment for University of myeloma and the police education has to be completed after the first of July.
Speaker Change: Our yield on cost of approximately 11% and the same thing with Doctor to one headquarter for Teva. They entered the building first of July a smaller investments that a great result, and a good impact for the area.
Ulrika: In the southern parts of Lund we have been able to continue the development of Tomaten. This project is for BPC, completion Q2-26. Yield on cost 7%. And next to that, at Stora Råby 3222, we have actually been able to improve even more. We have signed a new lease with Lund University, and that means that we can use the land area even better. So now in total 14,500 square metres for NOTE and Lund University. Completion will start in Q2 2026. Investments a bit lower actually, 260 million, and yield on cost improved to 9.2%.
Speaker Change: In the southern parts of loans, we have been able to continue the developer to master. This a project that is for BTC completion Q2 'twenty six.
Speaker Change: He is now close to 10%.
Speaker Change: Next to that that's what I do want the attitude 'twenty two we have actually been able to improve even more.
Speaker Change: We have signed a new lease with the University and that means that we can use the land area even better.
Speaker Change: So now in total for 10500 square meters on the note and on your domestic.
Speaker Change: Completion of would start in Q2, 26 investments a bit lower actually too on the $60 million and yield on cost improved to nine 2%.
Ulrika: At Galoppen, one in Malmö, we build a facility for CalDIT completion in Q3-25. Approximately 10,000 square meter production, logistic and office. Total investment 264 million and yield on cost 7%.
Speaker Change: I have kind of put one in myeloma will build a facility for elevate completion in Q3 25, approximately 10000 square meter production. So they stick and office total investment of $264 million on yield on cost of 7%.
Ulrika: And in Sundan we build 17 000 square meters. 100% pre-let and 15-year lease with completion in Q4 2025. Also 7%, close to 7%.
Speaker Change: And then soon I know, we built 17000 square meters.
Speaker Change: 100% pre let and a 15 year lease with completion in Q4 'twenty five.
Speaker Change: Oh, so 7% close to 7%.
Ulrika: In Harsland, Copenhagen, we invest for the school, for NGG, a 25-year lease, 11,600 square meters, completion in Q1 2016. And at Jiroströget, we have tossed up the large refurbishment for Novo Continuous, 62 000 square meters. Our investment is limited to 423 million and completion is expected in Q1 2026. But Novo pays rent also during the refurbishment period.
Speaker Change: In her phone Copenhagen, we invest for the school or Geeky 25 year lease 11600 square meters completion in Q1 'twenty six.
Speaker Change: And the theaters drug you can have you tossed up the large refurbishment for novel continues 62000 square meters. Our investment is limited to $423 million and completion is expected in Q1 'twenty six Bucks novel paced ramp also doing the refurbishment period.
Ulrika: That was some of the ongoing projects. Just a quick view on some of the future investments.
Speaker Change: That was some of the ongoing projects just of course yeah.
Speaker Change: Are you on some of the future investment for possible project in doing them has anymore.
Ulrika: Here are four possible projects in Lund and Helsingborg. Some 70,000 square meters for the future zoning plan are approved for the first three projects and ongoing at Västerbro in Lund. and some of the office possibilities in Malmö in the area of Nyhamnen and Dockan. High interest for the future, of course.
Speaker Change: Some 70000 square meters for the teacher sewing plant are approved for the first three project and ongoing it the best digital inland.
Speaker Change: And some of the office possibilities in myeloma in the area of Hum and Dotcom high interest for the future of course.
Ulrika: And a summary of Q2 again, a record quarter for rental income, operating surplus, income for property management, property value, acquisition and dividend. Net lasting positive at 24 million, net EBIT to EBITDI at 10.1, remain a good demand for good quality in good location and project investment continue to give a good potential for growth.
Speaker Change: And a summary of Q2 again, a record quarter for rental income operating surplus income per property management property value acquisition and dividend Nat testing positive by $24 million net EBIT to EBITDA at 10.1 remain a good demand for good quality.
Speaker Change: And co location and product investment continued to get a good potential for growth.
Operator: And with that we are open for questions. If you wish to ask a question, please dial, pound key, 5, on your telephone keypad, to enter the queue. If you wish to withdraw your question, please dial, pound key, 6, on your telephone keypad.
Speaker Change: And with that we are open for questions.
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.
Lars Norby: The next question comes from Lars Norby from SEB. Please go ahead.
Speaker Change: The next question comes from lost nobody from Seb.
Speaker Change: Please go ahead.
Speaker Change: Yeah.
Ulrika: Good morning, Eureka. Good morning, AVID. Morning. Okay, let me just put the spotlight on what you're saying about the economy and the market. looking particularly at, you're sending out a positive comment about the Copenhagen market whereas in Sweden you say the economy is weaker. And in Sweden, do you think we have now passed the low point in the cycle? Is it now turning up? Of course, it's hard to say. It's true regarding Copenhagen that we see really interesting discussion on larger areas and that's promising for the future. And many things in Copenhagen is working very well.
Speaker Change: Good morning, Good morning, Eric.
Speaker Change: Good morning.
Speaker Change: Okay, Let me just.
Speaker Change: The spotlight I'm curious thinking about the economy in the market.
Speaker Change: Okay Particularity out are you sending out.
Speaker Change: Positive comment about the Copenhagen, Mark kept whereas in Sweden, you say the economy is weaker.
Speaker Change: In Sweden do you think we have now passed the low point in the cycle isn't now turning up.
Speaker Change: [laughter].
Speaker Change: Of course hard to say.
Speaker Change: It is true regarding Copenhagen that we see.
Speaker Change: Really interesting discussion on larger areas and that's.
Speaker Change: That is promising for the Victor.
Speaker Change: And many things in Copenhagen is working very well.
Ulrika: So looking forward to see what will come from that. When it comes to Sweden, yes, I mean, everybody knows that the market is weaker, but... still positive things is ongoing, so. I hate, actually, to speculate, but...
Speaker Change: So looking forward to see what will come from that.
Speaker Change: And when it comes to Sweden, Yes, I mean, everybody knows that the market is weaker but.
Speaker Change: Still positive things is ongoing so.
Speaker Change: I I hate actually to speculate but.
Ulrika: I think that we see some some sunlight ahead definitely so maybe maybe i don't i don't think we should expect any quick race for for for the future but but uh a slow turn in a good way. Many things were from our customers perspective seems to be. pointing in the right direction, but a bit of cautiousness, of course, is there. I wouldn't call it speculative, I call it forecasts in my Excel model.
Speaker Change: I think that's okay.
Speaker Change: We see some some sunlight I had definitely but maybe maybe I don't I don't think we shall expect any quick race for the future, but but the.
Speaker Change: Our slow turn in a good way.
Speaker Change:
Speaker Change: Well, many things work from a customer's perspective seems to be.
Speaker Change: Pointing in the right direction.
Speaker Change: The cautiousness of course is there.
Speaker Change: I wouldn't call it speculative I call it forecasts and Microsoft model.
Speaker Change: Anyway.
Ulrika: Anyway, just to be clear here, when you talk about Copenhagen and you talk about Sweden, are you talking about comparable segments of the market or is your own segment mix different in which in some way affects your market comments, if you see what I mean? I think that. Of course, I'm closer to our own portfolio and our own discussions. And let's be aware of that the the Copenhagen market market still haven't shown any dramatic changes in higher, higher increasement of rental value, it's still a very slow-moving market in that way. But it's interesting to see that, I mean, the discussions we have ongoing is interesting.
Speaker Change: Let me just just to be clear here when you talk about the Copenhagen and you talk about Sweden are you talking about comparable segment of the market or to your own segment mix different in which in some way.
Speaker Change: <unk> pure market comments, if you see what I mean.
Speaker Change: Right.
Speaker Change: I think that.
Speaker Change: Of course.
Speaker Change: On more more closer to our own portfolio and our own discussions.
Speaker Change: And less be aware of that the the Copenhagen market market still haven't shown any.
Speaker Change: Thank you.
Speaker Change: Dramatic changes in in a higher higher increase meant a rental.
Speaker Change: Value, it's still a very.
Speaker Change: Slow moving market in that way.
Speaker Change: Okay.
Speaker Change: Hum.
Speaker Change: But it's interesting to see that.
Speaker Change: I mean, the discussions we have ongoing is interesting.
Speaker Change: Okay.
Lars Norby: But it will never be the same as the Swedish market, you can't expect that. But it's not like this final question, clarification, it's not like when you're talking about Sweden you're talking about some, what is it, 70-75% officers, whereas in Copenhagen it's less than that. I mean, I talk about the office market mainly in Copenhagen. Okay, very good. Thank you. Those are my questions.
Speaker Change: But it will never be the same as the Swedish <unk>.
Speaker Change: Don't count you can expect that.
Speaker Change: But it's not like it just final quick clarification, you felt like when you're talking about suite and you're talking about some what is it 70% to 75% offices, whereas in Copenhagen. It's.
Speaker Change: It's less than that if it.
Speaker Change: Okay.
Speaker Change: I mean, I I talked about the office market mainly in Copenhagen.
Speaker Change: Okay very good thank you for my questions.
Speaker Change: Okay.
John Vong: The next question comes from John Vong from Van Lanshot, Kempen. Please go ahead.
Speaker Change: The next question comes from John <unk> from Van Landshark Kempen. Please.
Speaker Change: Please go ahead.
Speaker Change: Yeah.
Arvid: Hi, good morning. wanted to talk about the LTV which has been trending up since its trough in 2021 and now at 53%. I think you mentioned your intent to bring this down a bit. I suppose this will be coming from retained earnings. Just wondering, how do you see the LTV in light of investment opportunities that you're seeing? Well, um... I think the current LTV at 53%, given the way we look at the world around us, we would like to gradually bring it down and to be, say, around 50%. But as As we have shown, actually during this quarter, we feel that we've managed our balance sheet in such a way that we've been able to seize an acquisition opportunity in a good way.
Speaker Change: Hi, good morning.
Speaker Change: Just wanted to talk about the LTV, which has been trending up since.
Speaker Change: Since the trough in 2021.
Speaker Change: 53%.
Speaker Change: You mentioned you intend to bring this down a bit for proposals will be coming from retained earnings.
Speaker Change: Just wondering how do you see the LTV and light.
Speaker Change: Investment opportunities that you're seeing in the market.
Speaker Change: Uh huh.
Speaker Change: <unk>.
Speaker Change: I think the the the current LTV at 53%.
Speaker Change: Given the way we look at the world around US we would like to do graduate to bring it down.
Speaker Change: And to be say around 50%.
Speaker Change:
Speaker Change: S.
Speaker Change: As we have shown actually during this quarter.
Speaker Change: We feel that we've managed our balance sheet in such a way that we've been able to see some acquisition opportunity.
Speaker Change: And in a good way.
Arvid: And focusing on improving income from property management per share, we've chosen to debt finance that acquisition. As we've talked about on different occasions previously, and I'm sure you're aware, that we also have... mandate from the AGM to issue new shares, up to 10% of the total number of outstanding shares. We've never used that mandate, but that is of course a tool which can be used if the right opportunity arises. So we don't feel that the current LTV limits us from looking at future opportunities in the market.
Speaker Change: And focusing on improving income from property management for sure where we've chosen to do debt finance that acquisition.
Speaker Change: As we've talked about on different occasions previously.
Speaker Change: And I'm sure you're aware that we also have <unk>.
Speaker Change: Monday from the AGM to issue new shares.
Speaker Change: Up to 10% of the total number of outstanding shares.
Speaker Change: We've never used that mandate, but but that is of course, a tool which can be used if the right opportunity arises.
Speaker Change: So.
Speaker Change: We don't feel that.
Speaker Change: The current LTV limits us from looking at.
Speaker Change: The future opportunities in the markets.
Arvid: But what will come up is, of course, very, very uncertain. Okay, Claire, and then you also point out that the net to EBDA or net to operating profit is at 10 times. I understand that it's not an official KPI, just curious to understand, is this a metric you look at and consider when you're considering investment? Well, I mean, we track the number on group level fairly closely because we think it makes sense to relate the debts to an approximation of the cash flow. and we're happy that that level or that metric over the past few years has been stable and even improved.
Speaker Change: But what will come up is of course very very uncertain.
Speaker Change: Okay.
Speaker Change: And then you also point out that the net debt to EBITDA or another to operating profit is up 10 times.
Speaker Change: I understand that it's not an official K try just curious on the side, especially metric you look at and consider one guineans considering investments.
Speaker Change: Well I mean, we were tracking number on group level.
Speaker Change: Fairly closely because we think it makes sense to relate the debt's too.
Speaker Change: Two an approximation of the cash flow.
Speaker Change: And we're happy that that level.
Speaker Change: Or that metric over the past few years has been stable and even improved.
Arvid: So that is, of course, one factor which we bear in mind when looking at investment opportunities. it's not necessarily a level that you target. I think if we're at 10 times where we are, we're very comfortable and we've been at 11 and above 11 as well, which also may be fine. But we don't feel from a financial stability perspective that it's important for us to significantly strengthen this ratio. If we're at 10 times, we're quite comfortable.
Speaker Change: So that is because one one factor, which would bear in mind when looking at the investment opportunities.
Speaker Change: But it's not necessarily in a level that you partnered with with this metric.
Speaker Change: I think if.
Speaker Change: If we're at 10 times, where we are.
Speaker Change: We're very comfortable and we've been at 11 and above 11, as well, which which also.
Speaker Change: May be fine.
Speaker Change: But we don't feel from a financial stability perspective that is important for us to significantly.
Speaker Change: We currently strengthened this ratio if we're at 10 times, where we're quite comfortable.
Arvid: Okay, that's clear.
Speaker Change: Okay. That's clear. Thank you that's it from my side.
Operator: Thank you.
Oscar Lindquist: The next question comes from Oscar Lindquist from ABG Sundal Collier. Please go ahead.
Oskar Lindquist: The next question comes from Oskar Lindquist from a B G sundial calia.
Oskar Lindquist: Please go ahead.
Oscar Lindquist: Now, we don't hear you, but maybe you. Oh, sorry, can you hear me now? Yes, now we are. Perfect.
Speaker Change: Now, we don't hear you, but maybe you.
Speaker Change: Oh, sorry can you hear me now.
Speaker Change: Yes, not really a perfect perfect good morning.
Ulrika: Good morning. So, on occupancy, I think you alluded to it in the presentation, but given recent quarters net letting, how do you expect occupancy to develop in H2? We expect to improve both in late 25 and even more to come 26. And then, more detailed question, but current tax in the quarter was a bit higher than expected. Could you, is there anything to highlight? Yes, we're As you can see in the report also, we divested some residential building rights from part of one of our properties in Copenhagen, and that will also trigger a tax effect, which is what distorts that number somewhat from what you would have expected.
Speaker Change: So on the.
Speaker Change: Occupancy I think you alluded to it in the presentation.
Speaker Change: Given recent quarters not lifting.
Speaker Change: Do you expect occupancy to dip.
Speaker Change: And it's too.
Speaker Change: We expect to improve.
Speaker Change: Both in late.
Speaker Change: 25, and are even more to come 26.
Speaker Change: Perfect.
Speaker Change:
Speaker Change: That's a question, but current tax in the quarter was.
Speaker Change: That's higher than expected could you is there anything to highlight there.
Speaker Change: Yes, we are.
Speaker Change: As you can see in the report also we divested some residential building rights from from part of one of our properties and Copenhagen.
Speaker Change: And that.
Speaker Change: We will also trigger a tax effect, which is what well.
Speaker Change: Distorts that number somewhat front from what you would've expected.
Oscar Lindquist: Okay. Perfect.
Speaker Change: Okay perfect. Thank you and that's all for me.
Oscar Lindquist: Thank you. That's all for me.
Operator: Thank you.
Speaker Change: Thank you.
Speaker Change: Yeah.
Albin Sandberg: The next question comes from Albin Sandberg from Kepler. Please go ahead. Yes, I had two questions. First Ulrika, the comment you're making about competitors not being too active in the market, Is that a sign you think that they don't really have the same faith in the market as you have or do you expect them to pick up pace as obviously the outlook seems quite good relative to other parts of the country? Uh Most of all, decisions for new projects coming out to the market now in 2025-2026 and early 2027, these decisions were supposed to be made some time ago.
Speaker Change: The next question comes from Alban Sandberg from Kepler.
Speaker Change: Please go ahead.
Speaker Change: Two questions.
Speaker Change: That's really where the comments, you're making about competitors not being too too active in the market.
Speaker Change: It's got a son, who think that they don't really have the same place in the market as you have or do you expect them to pick up pace over few their outlook seems quite good relative to other parts of the country.
Speaker Change: Oh.
Speaker Change: Most of all our decisions for four new projects compete.
Speaker Change: Competing coming out to the market now in 'twenty five 'twenty six and early 'twenty seven.
Speaker Change: These dishes and we're supposed to be made some time ago. So yes towns could have started a new project in the helium now but that will be completed later. So the competition is very limited for new builds coming out to the market are doing 26, I would say.
Ulrika: So yes, Skanska have started a new project in Hylian now, but that will be completed later. So the competition is very limited for new coming out to the market during 2026, I would say. Um And there is also some other projects starting up a bit, and possibilities is there of course, but things are, I mean it's not like some years ago when everybody tried to do anything everywhere. So it's a fact of decisions made. during the last years that now make us quite Competitive, I would say.
Speaker Change:
Speaker Change: And there is also some other projects.
Speaker Change: Stocking up a bit but and possibilities is there of course, but things are.
Speaker Change: It's not a like some years ago, when everybody tried to do and I think everywhere.
Speaker Change: So it's a it's a fact of our decisions made.
Speaker Change: Doing the last years that now make us quite a.
Speaker Change:
Speaker Change: Competitive.
Speaker Change: Hey.
Albin Sandberg: Okay, that's good.
Speaker Change: Yeah, Okay. That's good.
Arvid: And then, Avid, the comments you're making about SWOT expiring and possibly renegotiating lower margins, do you target to maintain the 3.3% or do you foresee a slight uptick in your overall good cost of finance? In the second half, we will have an effect of expiring swaps, meaning that the average interest rate would move upwards slightly. But as I also believe I mentioned, we're also having a few bank renegotiations during the second half. And my expectation is that those renegotiations will be beneficial for us. So, I mean, generally speaking, I think our financing terms are fairly much at market.
Speaker Change: The comments, you're making about the swap.
Speaker Change: Wiring and possibly renegotiate and lower margins.
Speaker Change: Do you target to maintain the three 3% or do you foresee.
Speaker Change: Overall group coastal final channel for HII.
Speaker Change: And in second half it would have.
Speaker Change: We have an effect of expiring swaps.
Speaker Change: Meaning that the average interest rate would move upward slightly but as I also believe I mentioned, we're also having a few back renegotiations during the second half.
Speaker Change: And my expectation is that those renegotiations will be beneficial for us.
Speaker Change: So I.
Speaker Change: I mean generally speaking I think our our financing terms are fairly much at market.
Arvid: We will continue to work with our interest rate risk management policy, entering into a few new swaps, basically on a quarterly basis. So I don't expect any major change in the average interest rate over the second half.
Speaker Change: We will continue to work with our interest rate risk management policy entering into a few new swaps.
Speaker Change: Basically on a quarterly basis.
Speaker Change: So I don't expect any major.
Speaker Change: The change in the average interest rates over the second half.
Albin Sandberg: Great, thank you very much. Those were my questions. Thank you.
Speaker Change: Great. Thank you very much those were my questions.
Speaker Change: Thank you.
Operator: As a reminder, if you wish to ask a question, please dial pound key 5 on your telephone keypad. There are no more phone questions at this time, so I hand the conference back to the speakers for any written questions and closing comments. And we've not seen any written questions coming in via mail here. OK, but as always, you're always welcome to come back to us with further questions. So with that, thanks for today. And we wish you all a great summer. Thank you. Bye. request statue maaa bouncing you Conference will automatically end in 30 seconds you Conference ending goodbye
Speaker Change: As a reminder, if you wish to ask a question. Please dial pound key five on your telephone keypad.
Speaker Change: There are no more phone questions at this time, so I hand, the conference back to the speakers for any written questions and closing comments.
Speaker Change: And we've not seen any rhythm.
Speaker Change: Questions coming in via mail here Okay.
Speaker Change: But as always you're always welcome to come back to us with all the questions. So with that thanks for today and we wish you all a great summer. Thank you bye.
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Speaker Change: Sure.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change:
Speaker Change: Uh huh.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: Hum.
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: [music].
Speaker Change: Uh huh.
Speaker Change: [music].
Speaker Change: Yeah.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: Thanks.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change:
Speaker Change: Uh huh.
Speaker Change: [music].
Speaker Change: Yes.
Speaker Change: [music].
Speaker Change: Uh huh.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Hum.
Speaker Change: Conference will automatically and in 10 minutes.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: Right.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: No.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Yeah.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: Thanks.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: Yeah.
Speaker Change: Yeah.
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Yes.
Speaker Change: Yeah.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Yeah.
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Yeah.
Speaker Change: [music].
Speaker Change: Yes.
Speaker Change: [music].
Speaker Change: Uh huh.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Yes.
Speaker Change: [music].
Speaker Change: Yes.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Sure.
Speaker Change: Okay.
Speaker Change: Uh huh.
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: Yeah.
Speaker Change: [music].
Speaker Change: Conference will automatically and in 30 seconds.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Yeah.
Speaker Change: Conference ending goodbye.