Q3 2025 Wihlborgs Fastigheter AB Earnings Call
Speaker #1: Your line is muted .
Speaker #2: Welcome to the presentation of the Nine Month Report 2025. There's an old saying: when you think you can see the light at the end of the tunnel, beware.
Ulrika Hallengren: Welcome to the presentation of Wihlborgs Fastigheter AB nine-month report 2025. There's an old saying: when you think you can see the light at the end of the tunnel, beware, it could be an oncoming train. We never know what will happen ahead, and we try to be prepared for whatever we can think of. Let us be clear, we see some glimmer here and there. Maybe not the full ray of light yet, but nice glitters in the horizon. It's a very busy report week for all of you, so I will try to be short and precise. That means standard procedure about the last results of our continued growth and some new records, but also some figures regarding loyalty among our customers, how we can calculate retention rates, and not at least our view of future occupancy. We start with a summary of the quarter July to September.
Speaker #2: It could be an oncoming train . We never know what will happen ahead . And we try to be prepared for whatever we can think of .
Speaker #2: But let us be clear we see some glimmer here and there . Maybe not the full ray of light yet , but nice glitters in the horizon .
Speaker #2: It's a very busy report week for all of you , so we'll try to be short and precise . That means standard procedure about the last results of our continued growth and some new records .
Speaker #2: But also some figures regarding loyalty among our customers, how we can calculate retention rates, and not least our view of future occupancy.
Speaker #2: We start with a summary of the quarter July to September. Rental income is up 6%, a new record at $1,101,000,000. Income from property management increased by 11%, and net lending is positive at $6 million.
Ulrika Hallengren: Rental income up 6%, a new record at SEK 1,101,000,000. Income from property management plus 11%. Net letting positive at SEK 6,000,000, net EBIT to EBITDA at 10.3 times, good access to financing. As said many times before, but this still stands, demand remains for good quality in good location, and we are proud to be able to continue with our project investment that gives continued good potential for growth. Looking at the whole period, first nine months, rental income up to SEK 3,243,000,000 plus 4%. The operating surplus increased to SEK 2,334,000,000, and income from property management increased by 12% to SEK 1,482,000,000. The result for the period amounts to SEK 1,370,000,000, corresponding to SEK 4.46 per share, and EPRA NRV has increased by 10% to SEK 96.23 per share, adjusted for paid dividends. A comparison of the rental income first nine months 2024 and first nine months 2025.
Speaker #2: Net Ebit to EBITDA at 10.3 times . Good access to financing and as said many times before , but this still stands . Demand remains for good quality in good location and we are proud to be able to continue with our project investment .
Speaker #2: That gives continued good potential for growth. Looking at the whole period, the first nine months of rental income is up to $3,243,000,000, plus 4%.
Speaker #2: The operating surplus increased to 2,334,000,000 , and income from property management increased by 12% to 1,482,000,000 . The result for the period amounts to 1,370,000,000 , corresponding to 4.46 kronor per share , and energy has increased by 10% to 96.23 krona per share , adjusted for paid dividend .
Speaker #2: A comparison of the rental income first nine months 24 and first nine months 25 indexation gives plus 30 million acquisition plus 90 million currency effect -21 million .
Ulrika Hallengren: Indexation gives plus SEK 30,000,000, acquisition plus SEK 90,000,000, currency effect minus SEK 21,000,000, additional charges plus SEK 21,000,000, and completed projects, new leases, and renegotiation plus SEK 8,000,000. Here's also a new higher property tax of approximately SEK 15,000,000 included. Higher vacancy today than a year ago, but small improvements since last report, and during 2026, the improvement from new leases will show. The streak of positive net letting continues, plus SEK 6,000,000 in the quarter, plus SEK 65,000,000 for the period, and in total, new leases at a yearly value of SEK 300,000,000 signed in the period.
Speaker #2: Additional charges plus 21 and completed projects . New leases and renegotiation plus 8 million . And here is also a new higher property tax of approximately 15 million .
Speaker #2: Included . So higher vacancy today than a year ago . But small improvements since last report and during 2026 . The improvement from new leases will show .
Speaker #2: And the streak of positive net letting continues . Plus 6 million in the quarter , plus 65 million for the period and in total , new leases at a yearly value of 300 million signed in the period for a third quarter .
Ulrika Hallengren: For a third quarter, the volume of new leases of SEK 66,000,000 is good, and maybe I expected the net letting to be a bit better than SEK 6,000,000, but we got a late termination of SEK 16,000,000 from a tenant who I'm not sure if they really want to move or just renegotiate. Discussions are ongoing, but the total termination is registered. A possible upside ahead. Forty-two quarters in a row with positive net letting. Here are some of the tenants that we have signed during Q3, a combination of expanding tenants and new tenants from many industries: healthcare, insurance, biomaterials, and a company that manufactures equipment for land-based fish farms as examples. 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.
Speaker #2: The volume of new leases of 66 million is good , and maybe I expected the net letting to be a bit better than 6 million .
Speaker #2: But we got a late termination of 16 million from a tenant who I'm not sure if they really want to move or just renegotiate .
Speaker #2: Discussions are ongoing, but the total termination is registered. So, a possible upside ahead: 40, two quarters in a row with positive net letting.
Speaker #2: Here are some of the tenants that we have signed during Q3. A combination of expanding tenants and new tenants from many industries.
Speaker #2: Healthcare , insurance , biomaterials , and a company that manufactures equipment for land based fish farms . As examples . And 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 .
Speaker #2: And as mentioned , quite high volume of new leases for being a third quarter . And the list of our ten largest tenants in alphabetic order .
Ulrika Hallengren: As mentioned, quite high volume of new leases for being a third quarter. The list of our 10 largest tenants in alphabetic order, strong customers, and they contribute with 20% of our rental income. Seven out of 10 are governmental tenants, and the public sector contributes with 23% of total rental income. Rental value as of 1 October is SEK 4,889,000,000 per year, plus 7.2%, and rental income SEK 4,379,000,000, plus 4.6%. Effects from acquisition, indexation, and higher willingness to pay for the right quality. Looking at like-for-like figures, all the properties we owned a year ago, excluding projects, compared with updated figures, we can see that rental value is up 2.4%, and rental income is down 0.8%. The growth of the rental market is supported by indexation of 1.6% in Sweden and approximately 1% in Denmark last year.
Speaker #2: Strong customers and they contribute with 20% of our rental income . Seven out of ten are governmental tenants , and the public sector contributes with 23% of total rental income .
Speaker #2: Rental value as a 1st October is 4,889,000,000 per year , plus 7.2% , and rental income 4,379,000,000 , plus 4.6% . Effects from acquisition , indexation and higher willingness to pay for the right quality .
Speaker #2: Looking at like for like figures , all the properties we owned a year ago , excluding projects compared with updated figures , we can see that rental value is up 2.4% and rental income is down 0.8% .
Speaker #2: The growth rental market is supported by indexation of 1.6% in Sweden and approximately 1% in Denmark . Last year , indexation ahead in Denmark expects to be a bit higher and that will be reflected in the rental levels for 2026 .
Ulrika Hallengren: Indexation ahead in Denmark expects to be a bit higher, and that will be reflected in the rental levels for 2026. I think the September number was 2.3% or something. Lower rental income in like-for-like is an effect of higher vacancy than a year ago, and at least it's encouraging to see that vacancy appears to have bottomed out in several areas. More on that topic later. Changes in the market value of properties. We started the year with SEK 59,168,000,000 in accordance with the external valuation of 100% of our portfolio. We have made acquisition, which adds on SEK 2,552,000,000, investment SEK 1,911,000,000, divestment minus SEK 114,000,000, changes in valuation plus SEK 450,000,000, and together with currency translations of minus SEK 500,000,000, that summarizes to a value of SEK 63,457,000,000. The valuation this quarter had no changes in valuation yields, indexation, or other underlying parameters.
Speaker #2: I think there's a timber number was 2.3% or something . Lower rental income in like for like is an effect of higher vacancy than a year ago .
Speaker #2: And at least it's encouraging to see that vacancy appears to have bottomed out in several areas. More on that topic later: changes in the market value of our properties.
Speaker #2: We started the year with 59,168,000,000 . In accordance with the external valuation of 100% of portfolio , we have made acquisitions , which adds on 2,552,000,000 investment , 1,911,000,000 divestment , -114 changes in valuation plus 450 million .
Speaker #2: And together with currency translations of -$500 million, that summarizes to a value of $63,000,000,405. A 57 million Swedish krona devaluation this quarter has had no changes in yields, indexation, or other underlying parameters.
Speaker #2: Expectation ahead is more likely to be positive . If I may guess , these figures , the running yield show how we actually perform in relation to the valuation .
Ulrika Hallengren: Expectation ahead is more likely to be positive, if I may guess. These figures, the running yield, show how we actually perform in relation to the valuation, so not the valuation yield. For the whole portfolio, the occupancy rate is 90%, excluding project and land, and with an operating surplus of SEK 3,326,000,000, 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. Occupancy is slightly up, looking at the decimals since the last quarter, and at least that is in the right direction. In the office portfolio, the market value is SEK 50,394,000,000, with an occupancy rate of 91%. 92% in Malmö, improved to 90% in Helsingborg, 90% in Lund, and 92% in Copenhagen.
Speaker #2: So not the valuation yield for the whole portfolio . The occupancy rate is 90% , excluding project and land . And with an operating surplus of 3,326,000,000 , that gives a running yield of 5.6% fully left .
Speaker #2: 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.
Speaker #2: Occupancy is slightly up. Looking at the decimals since the last quarter, it is up at least, and that is in the right direction in the office portfolio.
Speaker #2: The market value is 50,394,000,000 , with an occupancy rate of 91% , 92 in Malmö improved to 90 . In Helsingborg , 19 Lund and 92 in Copenhagen .
Speaker #2: The improvement has started and will be clearer during 2026 , operating surplus from offices summarized to 2,755,000,000 and running yield of 5.5% , 6.2 for the net , the demand for logistics and production continues to be good in Malmo , with an occupancy of 93% lower occupancy in Helsingborg at 83% , 91 in Lund , with a small portfolio and 96% in Copenhagen , 87 occupied 87% occupancy rate as a whole , with a running yield of 6.4% , 7.5% and a total value of 8,988,000,000 .
Ulrika Hallengren: The improvement has started and will be clearer during 2026. Operating surplus from offices summarized to SEK 2,755,000,000 and running yield of 5.5%, 6.2% fully let. The demand for logistics and production continues to be good in Malmö, with an occupancy of 93%. Lower occupancy in Helsingborg at 83%, 91% in Lund with a small portfolio, and 96% in Copenhagen. 87% occupancy rate as a whole, with a running yield of 6.4%, 7.5% fully let, and a total value of SEK 8,988,000,000. As mentioned before, we continue to see harder competition in the third-party logistics segment, with very quick changes in needs. That also means that occupancy can improve quickly when the market changes. I assume that vacancy in the southern parts of Helsingborg will be a bit sticky since the area will go through a makeover that would take a number of years.
Speaker #2: As mentioned before , we continue to see harder competition in the third part , logistics segment with very quick changes in needs that also means that occupancy can improve quickly when the market changes , but I assume that vacancy in the southern parts of Helsingborg will be a bit sticky , since the area will go through a makeover that will take a number of years .
Speaker #2: But as mentioned before, there is still a decent running yield of 6.4%. Even with the high vacancy rates and the market conditions, it continues to be interesting. The development of our total portfolio running yield at 5.6% brings stability, not least since the portfolio overall has a high quality and good location.
Ulrika Hallengren: As mentioned before, still a decent running yield of 6.4%, even with the high vacancy, and the market as such continues to be interesting. The development of our total portfolio running yield 5.6% brings stability, not least since the portfolio overall has a high quality and good location. As noticed before, a high increase of the running yield since 2021. Some sustainability highlights from Q3. We have been appointed as global sector leader by GRESB, completed a battery storage in Lund and actually one in Helsingborg as well. We have signed more sustainability-linked loans, also including Scope 3 carbon dioxide performance, and we continue to reduce our energy consumption. As a new example, we have reduced the electricity use for heating and cooling by 50% at Ideon Gateway in Lund, including both offices and a hotel. New cooling technology and, of course, the Yanner solution is the answer.
Speaker #2: As noted before , a high increase of the running yield since 2021 . Some sustainability highlights from Q3 . We have been appointed as global Sector Leader by Gresb , completed a battery storage in Lund and actually won in Helsingborg as well designed .
Speaker #2: We have signed more sustainable sustainability linked loans also including scope three carbon dioxide performance and we continue to reduce our energy consumption as a new example , we have reduced the electricity use for heating and cooling by 50% at the gateway in Lund , including both offices and a hotel .
Speaker #2: New cooling technology and of course , the solution is the answer . And something about what our customers think about us . Our latest customer satisfaction index from now in September shows an index of 79 and the score of 82 .
Ulrika Hallengren: Something about what our customers think about us. Our latest customer satisfaction index from now in September shows an index of 79 and a loyalty score of 82. Very high numbers. Tenants are especially happy with our personal service with 88% satisfaction, our competence scoring 86, and accessibility scored 85. Let me just say that I totally agree with our customers. I'm also very satisfied with my competent and service-minded colleagues. I give them 100 out of 100. A catalog of our value and properties in our four cities in Q3, 39% of the value in Malmö, 23% in Helsingborg, 17% in Lund, and 20% in Copenhagen. The region, especially these four cities, continues to be of high interest for future growth, both in population growth forecast, which will otherwise be a challenge in many places, and in a number of new workplaces. Time for financials. Over to you, Arvid.
Speaker #2: Very high numbers tenants are especially happy with our personal service , with 80% satisfaction . Our competence scoring 86 and accessibility scored 85 .
Speaker #2: Let me just say that I totally agree with our customers. I'm also very satisfied with my competent and service-minded colleagues. I give them 100 out of 100.
Speaker #2: A catalogue of our value and properties in our four cities in and Q3 39% of the value in Malmö 23 . In Helsingborg , 17 in Lund and 20% in Copenhagen .
Speaker #2: The region and especially these four cities , continues to be of high interest for future growth , both in population growth forecast , which will otherwise be a challenge in many places and in a number of new workplaces and time for financials .
Speaker #2: Over to you, Arvid. Thank you very much. Ulrika.
Arvid Liepe: Thank you very much, Ulrika. Looking at the income statement for the third quarter isolated, let's see, are we on the right slide? There we are. Thanks. Rental income grew by 6% to SEK 1,101,000,000, and operating surplus increased by 4% to SEK 790,000,000. There are a couple of things to bear in mind looking at those two numbers. First of all, we've been through a new property taxation, and we got the new taxation values this summer. The taxation values are higher, which means that the property tax also is higher. The new property tax is applicable from January 1, so we have, you could say, a catch-up effect. The changes for all three quarters are accounted for in the third quarter numbers.
Speaker #3: Looking at the income statement for the third quarter , isolated , see , are we on the right side ? There we are .
Speaker #3: Thanks . Rental income grew by 6% to 1,101,000,000 . An operating surplus increased by 4% to 790 million . There are a couple of things to bear in mind looking at those two numbers .
Speaker #3: First of all , we've been through a new property taxation and we got the new taxation values . This summer . The taxation values are higher , which means that the property tax also is higher .
Speaker #3: The property tax , the new property tax is applicable from 1st of January . So we have you could say a catch up effect .
Speaker #3: So, we have accounted for the changes for all three quarters in the third quarter numbers. This means that on the rental income line, as I mentioned, it has been affected by an increase of $15 million from increased property tax.
Arvid Liepe: That means that on the rental income line, as Ulrika mentioned, that has been affected with plus SEK 15,000,000 from increased property tax, and on the operating cost side, our operating surplus has been affected with minus SEK 20,000,000 from the increased property tax for the first three quarters during this year. The ongoing or the future effects of the increased property tax will be smaller on a quarterly basis than you can see in the Q3 numbers. It's also important to bear in mind that on the rental income line, we've had a negative effect from currencies of minus SEK 7,000,000, and that same currency effect on the operating surplus line has been minus SEK 5,000,000. The income from property management amounted to SEK 495,000,000, with a small positive impact there from FX since we borrow a lot in Danish krona as well.
Speaker #3: And on the operating cost side, our operating surplus has been affected by a decrease of 20 from the increased property tax for the first three quarters during this year.
Speaker #3: So the ongoing or the future effects of the increased property tax will be smaller on a quarterly basis than you can see in the Q three numbers .
Speaker #3: It's also important to bear in mind that on the rental income line, we've had a negative effect from currencies of minus seven, and that same currency effect on the operating surplus line has been minus five.
Speaker #3: The income from property management amounted to 495 million , with that a small positive impact . There from FX . Since we borrow a lot in Danish kroner as well , income from property management up 11% versus the same quarter in 2024 .
Arvid Liepe: Income from property management up 11% versus the same quarter in 2024. We had positive value changes in the quarter of SEK 103,000,000, and all in all, a profit for the period of SEK 487,000,000. Looking at the balance sheet, the value of our property portfolio is now SEK 63.5 billion, up SEK 5.6 billion versus 12 months previously. Equity stands at SEK 23.5 billion, up SEK 1.2 billion versus 12 months previously, and during that time, we have, as you know, also paid approximately SEK 1 billion in dividends to our shareholders. Our borrowings are SEK 33.2 billion, SEK 3.5 billion higher than 12 months previously. Translating that into key numbers, our equity/assets ratio now stands at 36.2%. The loan-to-value ratio has gone down from the last quarter to 52.3%. The interest cover ratio for the period stands at 2.8 times.
Speaker #3: We had positive value changes in the quarter of 103 million , an all in all , a profit for the period of 487 million .
Speaker #3: Looking at the balance sheet, the value of our property portfolio is now 63.5 billion Swedish kronor, up 5.6 billion versus 12 months previously.
Speaker #3: Equity stands at 23.5 billion , up 1.2 billion versus 12 months previously . And during that time we have , as you know , also paid approximately 1 billion in dividends to our shareholders and our borrowings are 33.2 billion Swedish kronor , 3.5 billion higher than 12 months previously .
Speaker #3: Translating that into key numbers , our equity assets ratio now stands at 36.2% . The LTV has gone down from the last quarter to 52.3% , and the interest cover ratio for the period stands at 2.8 times .
Speaker #3: Looking at some percent numbers , I'd just like to highlight the value at 96.23 Swedish kronor per share , which is up 10% , adjusted for dividends versus 12 months previously .
Arvid Liepe: Looking at some per share numbers, I'd just like to highlight the EPRA NRV value at SEK 96.23 per share, which is up 10% adjusted for dividends versus 12 months previously. On the next slide, you can see the historic development of EPRA NRV, stable growth over many years, and the average annual growth adjusted for dividend is actually 15%. Moving on to the historical development of our financial ratios, the equity/assets ratio at 36.2%, as you can see, is well above the 30% that we've set as the minimum level for ourselves, and also on decent levels in a long-term historical perspective. The loan-to-value in the perspective of approximately 10 years has come down from around 60% now to 52.3%.
Speaker #3: On the next slide, you can see the historic development of Wihlborgs Fastigheter. Stable growth over many years, and the average annual growth adjusted for dividends is actually 15%.
Speaker #3: Moving on to the historical development of our financial ratios , the equity assets ratio at 36.2 , as you can see , is well above the 30% that we've set as the minimum level for ourselves .
Speaker #3: And also on decent levels in a long term historical perspective , the loan to value in the perspective of approximately ten years has come down from around 60% now to 52.3 , and the interest cover ratio , as we've talked about before , has been very , very variable , especially during the the special period when we had almost zero interest rates , when we had an extremely strong interest cover ratio , the rate is now stabilized and 2.8 times is quite decent level to be at .
Arvid Liepe: The interest cover ratio, as we've talked about before, has been very, very variable, especially during the special period when we had almost zero interest rates, when we had an extremely strong interest cover ratio. The rate is now stabilized, and 2.8 times is a quite decent level to be at. On the next slide, you see the net debt in relation to EBITDA, also that in a long-term historical perspective. The ratio stands at 10.3 times. It varies with a couple of decimals up and down, but being at 10.3 times is a comfortable level for us. Looking at our sources of financing, we still have approximately half of our loans from bilateral bank agreements with Nordic banks, a third from the Danish real mortgage system, and 17% from the bond market.
Speaker #3: On the next slide , you see the net debt in relation to EBITDA . Also . That's in the long term historical perspective .
Speaker #3: The ratio stands at 10.3 times . It is . It varies with a couple of decimals up and down . But being at 10.3 times is a comfortable level for us .
Speaker #3: Looking at our sources of financing , we still have approximately half of our loans from bilateral bank agreements with Nordic banks , but a third from the Danish rail mortgage system and 17% from the bond market .
Speaker #3: I would say that the banks are definitely more proactive in their lending efforts than they have been for , for , for many years , actually .
Arvid Liepe: I would say that the banks are definitely more proactive in their lending efforts than they have been for many years, actually. We do see bank margins gradually moving downwards. The bond market has also, as we noted already in the Q2 report, the bond market is a lot stronger than it was a year ago, and we can issue unsecured bonds at quite attractive levels in this market. The structure of our interest rate portfolio, you can see on this slide, the average interest rate is 3.29%, 3.33% if you include costs for unutilized credit facilities. We have both in the past quarter, but also if you look over the coming couple of years, we will have some effects of attractive interest rate swaps expiring. We also see an effect of the margins that we pay to banks and in the bond market coming down somewhat.
Speaker #3: And we do see bank margins gradually moving downwards . The bond market has also , as we noted already in the Q2 reports , the bond market is a lot stronger than it was a year ago .
Speaker #3: And we can have issues with unsecured bonds at quite attractive levels in this market. The structure of our interest rate portfolio, you can see on this slide, the average interest rate is 3.29%.
Speaker #3: If you include costs for for unutilized credit facilities . We have both in the past quarter . But also if you look over the coming couple of years , we will have some some effects of attractive interest rate swaps expiring .
Speaker #3: But we also see an effect of the margins that we pay to banks and in the bond market coming down somewhat . So overall , over the coming few quarters , I would expect the average interest rate to be reasonably flat .
Arvid Liepe: Overall, over the coming few quarters, I would expect the average interest rate to be reasonably flat. Yes, we can move to the next slide and see the development of the fixed interest period, which has gone up a touch in the quarter, is now 2.7 years. The average loan maturity in the loan portfolio is 4.8 years. Lastly, from my side, looking at available funds, we have unutilized credit facilities plus liquid funds of SEK 2.9 billion at the end of the third quarter, which gives us, in our view, enough financial flexibility to manage operations and seize opportunities in a good way. With that, I hand the word back to you, Ulrika.
Speaker #3: And yes, we can move to the next slide and see the development of the fixed interest period, which has gone up a touch in the quarter, is now 2.7 years.
Speaker #3: And the average loan maturity in the loan portfolio is 4.8 years . And lastly , from my side . Looking at available funds , we have unutilised credit facilities plus liquid funds of 2.9 billion .
Speaker #3: At the end of the third quarter , which gives us , in our view , enough financial flexibility to to manage operations and sees opportunities in a good way .
Speaker #3: With that , I hand the word back to you . Eureka !
Speaker #2: Thank you. Here is an update on our investments in progress and a quick overview of our largest projects. During the period, we have invested $1,911,000,000, and there remains $2,730,000,000 to invest in approved projects.
Ulrika Hallengren: Thank you. An update on our investment in progress and a quick overview of our largest projects. During the period, we have invested SEK 1,911,000,000, and it remains SEK 2,730,000,000 to invest in approved projects, good volume in all our cities. A reasonable yield on cost with 6% or a bit above 6% for new build offices, and 7% or a bit above that for industrial. A good mix of refurbishment and new build in the portfolio. Let's start in Copenhagen with our project at AIB Industrivej 41. In the beginning, planned as and decided for a multi-tenant transformation, but with a 15-year lease with Perhouse left turned into a single-tenant building. 24,000 square meters, investment SEK 231,000,000, and yield on cost a bit above 6%. Completion is planned for February 2026. The large project at Amfiet 1 in Malmö has started off really well.
Speaker #2: Good volume in all our cities , a reasonable yield on cost with six or a bit above 6% for new build offices and seven or a bit above that for industrial and a good mix of refurbishment and new built in the portfolio .
Speaker #2: Let's start in Copenhagen with our project at 41 in the beginning , planned as and decided for a multi-tenant transformation . But with a 15 year lease with Pereiaslav turned into a single tenant building 24,000m² .
Speaker #2: Investment 231 million . And yield on cost a bit above 6% . Completion is planned to February 2026 . The large projects at amphitheatre One in Malmö has started off really well .
Speaker #2: A bit about 20,000 m² for Malmö University at a ten-year lease. We have started at the site with deconstruction, and during September, we received the building permission from the municipality.
Ulrika Hallengren: A bit about 20,000 square meters for Malmö University at a 10-year lease. We have started at site with deconstruction, and during September, we got the building permission from the municipality. Completion is planned for Q4 2027, and procurement will be completed shortly. In Malmö and Hyllie we continue with Black Hornet 1 Vista, an SEK 884,000,000 investment. The mobility hub has already been completed, and the office will be completed in Q1 2026 and during 2026. Yield on cost 6.2%, and today approximately 40% pre-let. The best possible product and low competition from new build in the area, but we still need more activity and more decisions from our customers before we are satisfied. An example of top-level refurbishment in Malmö is Buschhuset 1. This is an almost iconic building right beside the train station.
Speaker #2: Completion is planned for Q4 2027, and procurement will be completed shortly in Malmö. We continue with Black at One Vista and an investment of 884 million.
Speaker #2: The mobility hub has already been completed and the office will be completed in Q1 26 and during 26 . Yield on cost 6.2% .
Speaker #2: And today, approximately 40%. Pre-let the best possible product and low competition from new builds in the area. But we still need more activity and more decisions from our customers before we are satisfied.
Speaker #2: An example of top-level refurbishment in Malmö is at one. This is an almost iconic building right beside the train station, 6,000 m² offices, a restaurant, and co-working space, with absolutely top rents in Malmö.
Ulrika Hallengren: 6,000 square meters offices, restaurant, and co-working, and absolutely top brands in a Malmö perspective. Completion in Q1 2026, and moving in will continue during 2026. Pre-let 95%. At Kronan 7 in Malmö, we will invest approximately SEK 136,000,000 in a preschool for the municipality. 2,900 square meters zoning plan approved, and completion is expected for Q3 2027. Public procurement act starts now. At Sunnanå 1254, 17,000 square meters logistic, 100% pre-let in a 15-year lease, will be completed 1st of December 2025. SEK 280,000,000 investment and yield on cost close to 7%. In Lund, we are building a new modern office right beside the central station, Posttornet phase two, 10,100 square meters, yield on cost 6.5%, and completion Q2 2026. Pre-let a bit above 40% today, but together with ongoing discussions, I believe we can reach approximately 70% before year end. Keep our fingers crossed and very attractive product.
Speaker #2: Prospective completion in Q1 26 and moving in will continue during 26 Pre-let 95% at Kronan seven . In Malmö . We will invest approximately 136 million in a preschool for the municipality .
Speaker #2: 2900 m² zoning plan approved, and completion is expected in Q3 2027. The Public Procurement Act starts now, and at 12:54, we have 17,000 m². Logistics 100% pre-let in a 15-year lease will be completed on December 1, 2025. This is a 280 million investment with a yield on cost close to seven in Lund.
Speaker #2: We are building a new modern office right beside the central station Posten . At phase two , 10,100 square meter yield on cost 6.5% and completion Q2 26 Pre-let a bit above 40% .
Speaker #2: Today, together with ongoing discussions, I believe we can reach approximately 70% before year-end. Let's keep our fingers crossed; we have a very attractive product and advert.
Ulrika Hallengren: At Väset 1, also in Lund, we continue with refurbishment and adding on areas for our new tenant arm. 5,700 square meters and a seven-year lease. Investment SEK 145,000,000, excluding value of the land, and yield on cost a bit above 10%. Over 6.6% yield on cost, including ingoing property value. In the southern part of Lund, we continue to develop Tomaten. This product for BPC. Completion Q2 2026, and investment SEK 79,000,000. 3,600 square meters and yield on cost 7%. Next to that, at former Stora Råby 32:22, now named as Suvikålen 1, we have been able to improve since the project started. Tenants will be both NOTE and Lund University. Well-used land area and long leases. In total, 14,500 square meters. Completion in Q2 for NOTE and Q4 2026 for Lund University. Investment SEK 260,000,000 and yield on cost 9.2%.
Speaker #2: Also in Lund , we continue with the refurbishment and adding on areas for our new tenant ALM 5700m² and a seven year lease investment 145 million .
Speaker #2: Excluding value of the land and yield on cost a bit above 10% and over 6.6% yield on cost , including Ingoing property value in the southern part of Lund , we continue to develop of Tolmetin .
Speaker #2: This product for BPC completion Q2 2026 and investment 79,003,600 m², and yield on cost 7%. Next to that, at former 32.22. Now named as one, we have been able to improve since the project started.
Speaker #2: Tenants will be both no note and Lund University , so well used land area and long leases in total , 14,500 square meter completion in Q2 for notes and Q4 , 26 for Lund University investment 260 million and yield on cost 9.2% .
Speaker #2: In Hirschhorn , Copenhagen , we invest in a new school for MGD 25 year lease , 11,600 square meter and investment , 390 million Swedish krona completion in Q1 26 , and that year target in the refurbishment for Nuovo continues 62,000m² .
Ulrika Hallengren: In Hörsholm, Copenhagen, we invest in a new school for NGD. 25-year lease, 11,600 square meters, and investment SEK 390,000,000. Completion in Q1 2026. At Girosträget in Höje Tostrup, the refurbishment for Novo continues. 62,000 square meters. Our investment is limited to SEK 423,000,000, and completion is expected in Q1 2026. Novo also pays rent during the refurbishment period. That was some of the ongoing projects and just a touch on future possibilities as a repetition. Four possible projects in Lund and Helsingborg. We can develop some 70,000 square meters in the future. Zoning plans are approved for the first three projects and ongoing at Västerbro in Lund. Some of the office possibilities in Malmö in the area of Nyhamnen and Dockan. High interest for the future, of course.
Speaker #2: Our investment is limited to 423 million and completion is expected in Q1 26 . But Nuovo also pays rent during the refurbishment period .
Speaker #2: That was some of the ongoing projects and just to touch on future possibilities as a repetition for possible projects in loan that Helsingborg .
Speaker #2: Here we can develop some 70,000m² in the future . Zoning plans are approved for the first three projects and ongoing at Vesterbro in Lund , and some of the office possibilities in Malmö in the area of New Hamnen and high interest for the future .
Speaker #2: Of course , if you should ask me which projects of these will be the next one , my best guess today is that will be none of these .
Ulrika Hallengren: If you should ask me which projects of these will be the next one, my best guess today is that will be none of these. The Ideon site in Lund is developing very well, and we have building rights there that might be of high interest for the growing defense and tech industries. Early volume studies have started, but nothing I can show yet. A summary of Q3 again. Rental income up 6%. Income from property management plus 11%. Net letting positive. Net debt to EBITDA at 10.3%. Good access to financing. We will continue with our focus on cash earnings and future growth. We have been able to grow every year during different economic environments since 2005. We know how to adapt, find new ways, and will continue with this knowledge and ambition.
Speaker #2: The on-site development in Lund is progressing very well, and we have building rights there that may be of high interest to the growing defense and tech industries.
Speaker #2: Early volume studies have started , but nothing I can show yet . And a summary of Q3 again , rental income up 6% .
Speaker #2: Income from property management plus 11% net letting positive net debt to EBITDA at 10.3 times and a good access to financing . And we will continue with our focus on cash earnings and future growth .
Speaker #2: We have been able to grow every year during different economic environments since 2005. We know how to adapt to find new ways, and we will continue with this knowledge and ambition. Growth and cash flow are our passion, and the compound interest effect of stable growth is hard to beat.
Ulrika Hallengren: Growth and cash flow is our passion, and the compound interest effect of stable growth is hard to beat. From SEK 7 billion to SEK 63.5 billion without any new equity from our shareholders. We have been able to grow thanks to continued investments. They contribute to upgraded attractiveness and new demands. What comes first, higher rents or investments, has no answer, but these factors have a relation. Here is a graph showing the market rents for prime offices in Malmö and our quarterly investments during the same period, from 2010 to present. The green bars represent our investment, and the green line represents rent levels. Finally, a market outlook. Employment growth in our region continues. Office rents show long-term growth. Wihlborgs project investment increased over time. Tenants, on average, stay in the premises for 14 years, which supports the strong customer satisfaction score.
Speaker #2: From 7 to 63.5 billion without any new equity from our shareholders , we have been able to grow thanks to continued investments . They contribute to upgraded attractiveness and new demands .
Speaker #2: And what comes first? Higher rents or investments? There is no definitive answer. However, these factors are related. Here is a graph showing the market rents for prime offices in Malmö and our quarterly investments during the same period from 2010 to present.
Speaker #2: The green bars represent our investment and the green line represent rent levels and finally , a market outlook , employment growth in our region continues .
Speaker #2: Office rent show long term growth , billboards project investment increased over time . Tenants on average stay in the premises for 14 years , which support the strong customer satisfaction score .
Speaker #2: And if we just take the largest leases , we have signed , we have a volume of some 320 million moving in from now till end , 27 and during the same period , terminations of some 190 million .
Ulrika Hallengren: If we just take the largest leases we have signed, we have a volume of some SEK 320,000,000 moving in from now till end 2027, and during the same period, terminations of some SEK 190,000,000. A good gap. Possibilities for growth are in sight, and with that, we are open for questions.
Speaker #2: A good gap. So, possibilities for growth are in sight. And with that, we are open for questions.
Speaker #1: If you wish to ask a question, please dial the pound key on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial the pound key on your telephone keypad.
Operator: 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. The next question comes from Oskar Lindqvist from ABG Sundal Collier. Please go ahead.
Speaker #1: The next question comes from Oscar Lindquist from AB Sundal Collier . Please go ahead .
Speaker #4: Good morning. Can you hear me? Morning. Good morning.
[Analyst 1]: Good morning. Can you hear me?
[Analyst 2]: Morning.
Ulrika Hallengren: Morning. Yes, thanks.
Speaker #2: Yes , fine .
Speaker #4: So firstly , on projects , the two projects completed in the quarter Galopin and Kron . And how much did they contribute in the quarter ?
[Analyst 1]: Firstly, on projects, the two projects completed in the quarter, Galoppen and Kranen, how much did they contribute in the quarter, and how much should we expect into Q4?
Speaker #4: And how much should we expect in Q4?
Speaker #2: They did contribute in the quarter, but will contribute for the full Q4.
Ulrika Hallengren: They didn't contribute in the quarter, but will contribute for the full Q4.
Speaker #4: Okay , perfect . And then on the project from from when should we expect contribution from that project ?
[Analyst 1]: Okay, perfect. On the Sunnanå project, from when should we expect contribution from that project?
Speaker #2: Also from 1st of October ? No , 1st of December . Sorry .
Ulrika Hallengren: Also from 1st of October. No, 1st of December, sorry.
Speaker #4: 1st of December . Okay . And then the bushes project was moved to Q1 . What's the reasoning ?
[Analyst 1]: 1st of December, okay. The Buschhuset 1 project was moved to Q1. What's the reasoning?
Speaker #2: The the tenant will start moving in there . So there's no delay in the in the project . But it's a difference between then the when the building is completed and when tenants moving in .
Ulrika Hallengren: The tenant will start moving in there, so there's no delay in the project. It's a difference between when the building is completed and when tenants moving in. I think we will have so many there in February, but the rent will be started to pay in Q1.
Speaker #2: So I think that we will have many there in February. However, the rent will start to be paid in Q1.
Speaker #3: Okay . However , everybody does not move in . No , in Q1 of of the signed leases .
[Analyst 1]: Okay. However, everybody does not move in.
Ulrika Hallengren: No.
[Analyst 1]: In Q1 of the signed leases.
Speaker #2: Correct. We have been moving in during the whole 26.
Ulrika Hallengren: No, correct. We have moving in during the whole 2026.
Speaker #4: Yeah . And then if we move over to net lifting , you mentioned a late termination of 16 million in the quarter . When do you think you will know if they terminate or , or extend their contract ?
[Analyst 1]: Yeah. If we move over to net letting, you mentioned a late termination of SEK 16 million in the quarter. When do you think you will know if they terminate or extend their contract?
Speaker #2: We have calculated as terminated, and discussions are ongoing. So, I guess now during Q4, there will be a decision if they stay or move.
Ulrika Hallengren: We have calculated as terminated, and the discussions are ongoing. I guess now during Q4, there will be a decision if they stay or.
Speaker #4: Yeah. And if they terminate, the impact would be in 9 to 12 months, or what's fair to expect here?
[Analyst 1]: If they terminate, the impact would be in 9 to 12 months, or what's fair to expect there?
Speaker #2: Just a minute . 2027 from 1st of January , 2027 .
Ulrika Hallengren: Just a minute. 2027, from 1st of January 2027.
Speaker #4: Okay . Good . And then so if we adjust for that termination , was positive , 22 million . What's the mix here between projects and existing properties ?
[Analyst 1]: Okay. Good. If we adjust for that termination, net letting was positive SEK 22 million. What's the mix here between projects and existing properties?
Speaker #2: In the quarter . Oh I don't have that figure right away . But I think actually that the existing portfolio have contributed very well this year and also in the quarter and also good contribution from all our cities , at least for the nine nine month period .
Ulrika Hallengren: In the quarter, I don't have that figure right away, but I think actually that the existing portfolio has contributed very well this year, and also in the quarter, and also good contribution from all our cities, at least for the nine-month period. I would say that we see positive signals in all our four cities.
Speaker #2: So I would say that we see positive signals in all our four cities .
Speaker #4: Okay. So, if we... okay.
[Analyst 1]: Okay. If we... Sorry?
Speaker #3: Yeah , it's in the quarter , I would say with that I don't have the exact figure figure either , but I would say that more existing properties than projects during this quarter in the net lettings .
Arvid Liepe: In the quarter, I would say, I don't have the exact figure either, but I would say that more existing properties than projects during this quarter in the net lettings.
Speaker #4: Okay. Perfect. And then, if we look at the Black Net project and the Post Net project, how are the discussions going there?
[Analyst 1]: Okay, perfect. If we look at the Black Hornet 1 Vista project and the Posttornet phase two project, how are the discussions going there? You improved the occupancy slightly in Black Hornet 1 Vista now in the quarter. What's your sort of ambitions closing in on completion?
Speaker #4: You improve the occupancy slightly in black . Not now in the quarter . What's your sort of ambitions closing in on completion ?
Speaker #2: Our ambition is to improve , of course , it's a very good product and but the volume is quite large . So something tends to take longer time when you can choose of good things .
Ulrika Hallengren: Our ambition is to improve, of course. It's a very good product, but the volume is quite large. Something tends to take longer time when you can choose of good things in many levels, so to speak. I can't give a figure when I think it's, but I think we will continue with the work for letting also during 2026. That's reasonable to think that.
Speaker #2: In many , in many levels , so to speak . So I can't give a figure when I think it's . But I think we will continue with the work for for letting also during 2026 .
Speaker #2: That's reasonable to think that .
Speaker #4: Yeah .
[Analyst 1]: Yeah.
Speaker #2: But let me also mention that we see a good outlook. We have signed new leases in the same area, and we actually bought the portfolio on April 1st.
Ulrika Hallengren: Let me also mention that we see a good, we have signed new leases in Böve in the same area. Also, actually, the portfolio we bought 1st of April, there was some vacancy at Kajutan, for example, and that is now, I think, 20-30% vacancy, and that is now fully let. There is definitely activity out there.
Speaker #2: There was some vacancy at, for example, . And that is now, I think, 2,030% vacancy. And that is now fully let. So there is definitely activity out there.
Speaker #2: .
Speaker #4: And would you say the outlook or discussions with the tenants has improved in the quarter? And going into Q4?
[Analyst 1]: Would you say the outlook or discussions with the tenants has improved in the quarter and going into Q4?
Speaker #2: Yeah , I think so , but it depends . One day you think it's slow and one day you think it's very active .
Ulrika Hallengren: I think so. It depends. One day you think it's slow, and one day you think it's very active. Overall, I would say that there's more positivism out there.
Speaker #2: Overall, I would say that there's more positivism out there.
Speaker #4: Yeah . And then on occupancy , it's essentially flat Q and Q and you've sort of loaded or guided to improving occupancy in the second half .
[Analyst 1]: Yeah. On occupancy, it's essentially flat Q1Q, and you've sort of alluded or guided to improving occupancy in the second half. Could you quantify what you're expecting or what we could expect in Q4?
Speaker #4: Could you quantify what you expect in or what we could expect in Q4 ?
Speaker #2: I especially guided in occupancy in offices in Helsingborg and that have improved 2% during the year and otherwise . I think that we will continue to have some improvements , but not quick improvements , since we also have , I mean , for example , Ssab will move out the 1st of January 26 and that will take some time before we have entering new tenants .
Ulrika Hallengren: I especially guided on occupancy in offices in Helsingborg, and that has improved 2% during the year. Otherwise, I think that we will continue to have some improvements, but not quick improvements since we also have, I mean, for example, Saab will move out the 1st of January 2026, and that will take some time before we have entering new tenants there. A very good example of that is that we have already signed new leases for that building with new tenants moving in in a year. Only nine months for refurbishment. I.
Speaker #2: There . But a very good example of that is that we have already signed new leases for that building with new tenant moving in in a year , so only nine months for refurbishment .
Speaker #2: And I .
Speaker #3: Part of the building .
[Analyst 1]: For part of the building.
Speaker #2: Yeah , for part of the building . So , so they will they take the sign , take one part of the building and we also have good discussions for , for more areas .
Ulrika Hallengren: Yeah, for part of the building.
[Analyst 1]: Yeah, yeah.
Ulrika Hallengren: They take the signed leases, take one part of the building, and we also have good discussions for more areas there, which might also end up in moving in, yeah, I mean, October next year or so. Quite a quick period between moving out and new tenants moving in. Not for the total volume, but a good part of it.
Speaker #2: There which might also end up in moving in , in . Yeah , I mean October next year or so . So quite quick period between moving out and and new tenants moving in and not for the total volume , but a good part of it .
Speaker #2: So .
Speaker #4: Okay. Thank you. That's all from me.
[Analyst 1]: Okay. Thank you. That's all from me.
Speaker #3: Thank you .
Speaker #2: Thank you .
Arvid Liepe: Thank you.
Ulrika Hallengren: Thank you.
Speaker #1: The next question comes from Eleanor Frew from Barclays. Please go ahead.
Operator: The next question comes from Eleanor Froome from Barclays. Please go ahead.
Speaker #5: Boeing team , thanks for the presentation . Just one question from me . So on rental growth , your chart clearly shows us prime rental growth .
[Analyst 3]: Morning, team. Thanks for the presentation. Just one question from me. On rental growth, your chart clearly shows as prime rental growth, but can you comment on the more secondary assets? What's the rental growth you're seeing there, and is there any negative releasing on those poorer quality assets?
Speaker #5: But can you comment on the more secondary assets . What's the rental growth you're seeing there ? And is there any negative releasing on those poorer quality assets ?
Speaker #2: I mean , of course , when you look into the absolutely best location and top rent levels , that is one area . If you just take a small step from that and still good location and good quality , the rent levels continue to develop well .
Ulrika Hallengren: Of course, when you look into the absolutely best location and top rent levels, that is one area. If you just take a small step from that and still a good location and good quality, the rent levels continue to develop well. If you go to a poorer area, we have not a large amount of equity there. I can't really give a good guidance, but of course, it's harder to find higher levels of rents in a poorer area. There will be a larger difference there in the market as it is today.
Speaker #2: If you go to more poorer area , we we have not . A large amount of equities there . So I can't really , really give a good guidance .
Speaker #2: But but of course it's harder to find higher levels of rents in in poorer area . There will be larger difference . There in the market as it is today .
Speaker #5: Thank you .
[Analyst 3]: Thank you.
Speaker #1: The next question comes from Lars Norby from Seb. Please go ahead.
Operator: The next question comes from Lars Norrby from SEB. Please go ahead.
Speaker #6: Okay . Good morning . I'm a bit late into the call . So , you know , cut me off . If I ask a question of somebody else has already asked .
[Analyst 4]: Okay. Good morning. I'm a bit late into the call, so you know, cut me off if I ask a question if somebody else has already asked. I have a follow-up on a question I heard, and that was about the occupancy rate. Once again, flat in the quarter. Just to be clear, I mean, you have some six projects or so being completed in the first quarter of 2026, and then you talked about that Saab moving out. Based on what you know today, has the occupancy rate bottomed out, and at what point in time do you expect it to improve? At what stage in 2026?
Speaker #6: But I have a follow up on on the question I heard , and that was about the occupancy rate . Once again , flat in the quarter , just to be clear .
Speaker #6: And I mean , you have some six projects or so or being completed in the first quarter of 26 , and you talked about that Saab moving out .
Speaker #6: But based on what you know today . Has has the occupancy rate bottomed out . And at what point in time do you expect it to improve ?
Speaker #6: At what stage in 26 . ?
Speaker #2: I would say that for the whole portfolio , I think the the vacancy have bottomed out . But we can see for a shorter time or period a higher vacancy in some areas .
Ulrika Hallengren: I would say that for the whole portfolio, I think the vacancy has bottomed out. We can see for a shorter time or period a higher vacancy in some areas, for example, when Saab moves out and before we have new tenants in place. We meet that well with new rental agreements. Yes, I think we have bottomed out and will improve, but the improvement isn't a quick shift. It will take some time, especially during 2026 and end of 2026, as mentioned before, we have a quite large volume coming in. Also, now in Q4, we have good volumes coming in from Galoppen and Sunnanå, for example. Of course, we want the occupancy to be even higher, but still, it's good to see that we have flattened out and are on the upgoing way on the occupancy again.
Speaker #2: For example , when Saab moves out and before we have new tenants in in place . But we meet that well with new new rental agreements .
Speaker #2: So yes , I think we have bottomed out and will improve . But the improvement isn't a quick shift . It will take some time and especially during 2026 and end of 2026 , as mentioned before , we have a quite large volume coming in , but also now in Q4 , we have good volumes coming in from Gallup and and for example , so yeah , of course we want the occupancy to be even higher .
Speaker #2: But but still , it's good to see that we have flattened out and are on the up going way on the occupancy again .
Speaker #6: Okay . And second and final question , 2025 spent a year where you're growing through projects . But also through a quite substantial acquisition .
[Analyst 4]: Okay. The second and final question. 2025 has been a year where you're growing through projects, but also through a quite substantial acquisition. Looking ahead, 2026, 2027, is it very much all about projects, or are you considering adding additional size of any magnitude through acquisition as well?
Speaker #6: Looking ahead to 2026 and 2027, is it very much all about projects, or are you considering adding additional size of any magnitude through acquisition as well?
Speaker #2: I expect that we will see a combination . It's good with the project volume because you can manage that and plan for that and acquisition is harder to to plan for .
Ulrika Hallengren: I expect that we will see a combination. It's good with the project volume because you can manage that and plan for that. Acquisition is harder to plan for. We continue to be active and trying to find the best premises for us. Of course, it's an interesting period we're in.
Speaker #2: But we continue to be active and trying to find the the best premises for for us . And of course , it's an interesting period where we're in .
Speaker #6: Just a quick follow up on that in what geographic area are we talking primarily about Copenhagen then , or is it more likely to be in Sweden ?
[Analyst 4]: Just a quick follow-up on that. In what geographic area are we talking primarily about, Copenhagen, or is it more likely to be in Sweden?
Speaker #2: I think there is interesting things going on , both in Sweden and Denmark . So we try to be active on both places .
Ulrika Hallengren: I think there are interesting things going on both in Sweden and Denmark. We try to be active in both places, both countries. As mentioned, you can't plan for a transaction if you want them to be the best things for you. Of course, you can be aggressive and try to buy whatever, but we will continue to be picky on what we want to go into, of course.
Speaker #2: Both countries . And as mentioned , I mean , you can't plan for transaction if you if you want them to be . The best things for you .
Speaker #2: So, of course, you can be aggressive and try to buy whatever. But we will continue to be picky about what we want to go into.
Speaker #2: Of course .
Speaker #6: Sounds good . I hope you don't buy whatever . Thank you .
[Analyst 4]: Sounds good. I hope you don't buy whatever. Thank you.
Speaker #2: I know we will not .
Ulrika Hallengren: No, we will not.
Speaker #1: The next question comes from Oscar Lindquist from ABG Sundahl Collier . Please go ahead .
Operator: The next question comes from Oskar Lindqvist from ABG Sundal Collier. Please go ahead.
Speaker #4: Yes , I just had a follow up question on on the property tax . You mentioned weighing on the NY margin . So the effect in this quarter was 5 million .
[Analyst 1]: Yes, I just had a follow-up question on the property tax you mentioned weighing on the NOI margin. The effect in this quarter was SEK 5 million, as I understand it. Is that correct?
Speaker #4: As I understand it , is that correct . ?
Speaker #3: On the operating surplus line ? Yes .
Arvid Liepe: On the operating surplus line, yes.
Speaker #4: Yeah .
[Analyst 1]: Yeah.
Speaker #3: And a negative effect of 5 million .
Arvid Liepe: is a negative effect of SEK 5 million.
Speaker #4: Yes . But going forward , will you be able to sort of pass on the the full increase in property tax to tenants .
[Analyst 1]: Yes, but going forward, will you be able to sort of pass on the full increase in property tax to tenants?
Speaker #3: Not 100% , but , but the very largest part .
Arvid Liepe: Not 100%, but the very largest part.
Speaker #4: Okay . So so still I mean we .
[Analyst 1]: Okay, still a little bit of.
Speaker #3: We do we do have some , some vacancies for example . And we have a very small proportion . But but still a few other inclusive contracts so to speak .
Arvid Liepe: I mean, we do have some.
Operator: Vacancies, for example, and we have a very small proportion, but still a few inclusive contracts, so to speak.
Speaker #4: But then, significantly lower than the 5 million we saw this quarter. Yes.
Ulrika Hallengren: it then significantly lower than the SEK 5 million we saw this quarter?
Operator: Yes.
Speaker #2: Yes .
Arvid Liepe: Yes.
Speaker #4: Okay . Perfect . Thanks .
Ulrika Hallengren: Okay. Perfect. Thanks.
Speaker #1: As a reminder , if you wish to ask a question , please dial Pound Key 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 .
Operator: As a reminder, if you wish to ask a question, please dial #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.
Speaker #2: Perfect . Thank you . Have we got any written questions ? As you can .
Arvid Liepe: Perfect. Thank you. Have we got any written questions that you can?
Speaker #3: Double check . Not that I can find . No , no .
Ulrika Hallengren: Let me double-check. Not that I can find.
Arvid Liepe: No?
Ulrika Hallengren: No.
Speaker #2: Okay , so of course you're welcome to come back to us whenever with whatever whatever . Ask questions . Thank you for this .
Arvid Liepe: Of course, you're welcome to come back to us whenever with whatever questions. Thank you for this.
Speaker #3: Maybe we shall conclude with that. This may actually have been a record quick presentation.
Operator: Maybe we should conclude with that this may actually have been a record quick presentation.
Speaker #2: Definitely 42 minutes. It's an hour. Quickest version. I think we try to be precise and quick, but that was part of it.
Arvid Liepe: Definitely. Forty-two minutes. It's our quickest version, I think. We try to be precise and quick, but that was part of it.
Speaker #3: Thank you, everyone, for listening in.
Operator: Thank you, everyone, for listening in.
Speaker #2: Thank you .
Arvid Liepe: Thank you.
[Analyst 1]: Your line is muted. The host has ended this call. Goodbye.