Operator: Welcome to Logistea Q3 Earnings Call 2026. During the questions-and-answers session, participants are able to ask questions by dialing pound key five on their telephone keypad. Now I will hand the conference over to CEO Niklas Zuckerman and CFO Philip Löfgren. Please go ahead.
Niklas Zuckerman: Good morning, and welcome to the presentation of Logistea's interim report for the Q3 of 2026. As always, myself, Niklas Zuckerman, and together with Philip Löfgren, we will take you through the report. We take any questions after the presentation. We have continued to deliver on our strategy during the third quarter, meaning building a portfolio of long-lease logistics and light industrial properties in the Nordics. At the end of the quarter, we own 174 properties with a property value of approximately 19.4 billion SEK at a rental value of 1.4 billion SEK. The occupancy rate is up to 97.5%, and the average lease duration is 8.6 years. The net initial yield excluding project is 6.7%. Sweden remains our largest market with 61% of the property value, followed by Norway with 21%.
Niklas Zuckerman: Denmark and Finland are growing, and with the acquisitions in the quarter, we are now also present in Stockholm. Including the most recent transaction in Denmark, the Velux transactions, which we closed after the end of the quarter, we have passed 20 billion SEK in property value. The implied yield as of Q3 is 7.8%, and the dividend yield is 1.2%. Once again, we are reporting record income, net operating income, and profit from property management. For the first 9 months, income amounted to 949 million SEK, which is up 19%.
Niklas Zuckerman: Net operating income was 859 million SEK, up 18%, and profit from property management increased by 29% to 486 million SEK. Finally, the profit from property management per share is up 23% to 0.95 SEK. So far this year, we have acquired properties for 3.6 billion SEK, and net lettings amounts to a positive 23 million SEK.
Niklas Zuckerman: Profit from property management per share earnings capacity, including the Velux transaction, is up by 31% since the start of the year. We ended the period with a cash balance of 380 million SEK. This slide shows the journey. At the end of 2022, the property value was 4.6 billion SEK, following the KMC merger and continued acquisitions, we are now at more than 20 billion SEK, as I said. At the same time, we have kept a healthy yield spread, the net initial yield of 6.7%, and our average interest rate has come down to 4.2%, which gives us a yield gap of 2.5%. Talking a bit on the transactions that we have signed in Q3 and totaling 2.1 billion SEK. The first one is two properties in Tampere and Oulu in Finland, which I mentioned at our last presentation.
Niklas Zuckerman: Both are fully leased to Vianor on seven-year leases, and the purchase price was 145 million SEK. That transaction was closed on 20 August. The second one is an important milestone for us, our entering into the Stockholm market. It is a cross-dock terminal in Spånga, 54,000 square meters, fully leased to DSV Road on a seven-year lease plus one year penalty if they decide to terminate the lease. The purchase price was 950 million SEK, a rental value of 72.5 million SEK, and that represents a net initial yield of 7%. That deal was closed, as you can see, end of September.
Niklas Zuckerman: The third is our largest single transaction this year. We have acquired properties in Denmark, in total, 131,000 square meters. All properties fully leased to Velux on 11-year leases. Purchase price, just north of 1 billion SEK. Rental value, 78 million SEK.
Niklas Zuckerman: This represents a yield just short of 8%. This deal was closed on 15 October, meaning that we now have around 2 billion SEK worth of properties in Denmark. Summarizing the year so far, we have acquired 10 properties or portfolios for a total value of 3.6 billion SEK at an average yield of 7.3%. This compares well with our average interest rates of 4.2%. Of this, 2.6 billion SEK closed during the first three quarters, and Velux closed in the fourth quarter. In total, more than 318,000 square meters with an average lease duration of nine years. Together, these transactions add 0.33 SEK to the profit from property management per share. As you can see, the acquisitions are spread across Sweden, Finland, and Denmark, which strengthens our Nordic platform. A short update on the Lockryd site outside of Borås.
Niklas Zuckerman: As you see on this page, 730,000 square meters land, roughly 470 square meters of building rights. We have the agreement with Vattenfall for delivery of 150 megawatts of power, which is expected to be delivered in 2030, 2031. Zoning plan, as we have said, has gained legal force, and we have exercised the option to acquire the land. The next step is to sign a purchase agreement with the municipality, and we are in those discussions right now. In parallel with that, we are in discussions with potential tenants for future developments. As we have said, when and if anything is signed on this one, we will of course come back to you and inform the market. Looking at the earnings capacity, it continues to improve quarter by quarter.
Niklas Zuckerman: As of 1 October, the rental value amounts to SEK 1.4 billion and the net operating income to almost SEK 1.3 billion, which is up 23% in one year. Profit from property management amounts to SEK 753 million, which is up 28%. Per share profits from property management in the run rate is SEK 1.47, an increase by 27% compared to a year ago. If we include the Velux transaction, it amounts to SEK 1.55 per share, which is a 21% increase compared to the start of the year. Looking at the longer trend, earnings capacity per share has grown by 15% per year since 2022, and 30% on an annual basis since beginning of 2024. As you know, the growth is driven by acquisitions with a clear yield gap and improved financing terms.
Niklas Zuckerman: A new slide, so to say, where we will discuss capital allocation and acquisitions versus buybacks. We obviously continuously evaluate the best use of the capital given the market conditions. As you know, we have a mandate from the AGM to buy back up to 5% of the shares. Here we are trying to illustrate, and we have compared the two alternatives, buybacks or acquisitions. We have used the same amount of equity, the SEK 335 million, which corresponds to our current maximum buyback amount, so 5% of the outstanding shares. Buying back shares in Q3 at an average price of SEK 13.11 would increase the profit from property management per share by 4.2% in year one.
Niklas Zuckerman: If we use the same equity for acquisitions, and we have used the same terms as the last two deals that we have undertaken, the deal with Velux and the DSV property in Stockholm, representing 7.4% yield and 3.9% interest cost for new debt, that gives us an increase of 5.5%. So 4.2% increase for buybacks, and 5.5% increase basically for similar transactions that we have just undertaken. Then once you remember that the gap widens over time. When the cash flow from the acquisitions is reinvested, the effect of the five years is 7.5% compared to 4.7% for the buybacks. So today, acquisitions are better use of capital, but obviously we will continue to evaluate this as conditions will change, and they will change, of course.
Niklas Zuckerman: Finally on this slide, also worth mentioning that if we were to do buybacks of the SEK 335 million and provided the current turnover in the share, that would take us seven months. So there is a time factor also included in the buyback scenario. A few words on the tenant mix. Obviously the recent transactions have also meant that we have a more diversified portfolio. Beijer's share of the rental income is down to 21%. DSV is now our second largest tenant with 8%. If we include the Velux transaction, which is not included on this page, the Beijer share will decrease to approximately 19%. Around 93% of our net operating income comes from the Nordic, with Sweden at 57% and Norway at 23%. Our leases gives us high visibility in future rental income. Around 98% of the leases are CPI indexed.
Niklas Zuckerman: Occupancy rate is 97.5%, and the average remaining lease term is 8.6 years. The Q3 was quiet or stable, depending on how you see it, on the leasing side, with a +SEK 1 million net letting and no terminations. For the first 9 months in total, net lettings amounts to SEK 23 million compared to -SEK 4 million for the same period of last year. This has followed a very active Q1 of the year. Worth mentioning is that SEK 50 million of the net letting is not yet included in the run rate or occupancy rate, since the tenants have not yet moved into their premises. With that, I hand over to Philip.
Philip Löfgren: Thank you, Niklas. As you explained, we have record high income, net operating income, and profit from property management to report for the quarter. The revenue for the quarter increased by 14% to SEK 327 million compared to the same quarter last year, which is primarily linked to acquisitions and leasing activities, but also a like-for-like growth in the quarter of 2%. Revenues for the period increased 19% and amounted to SEK 949 million, where the like-for-like portfolio increased 2.6%. The net operating income came out at SEK 299 million for the quarter, increased by 11% from the same quarter last year. Contributors to the increase are acquisitions and increases in the like-for-like portfolio. For the period, the NOI increased by 18% to SEK 859 million.
Philip Löfgren: I can add that we, in the Q3, had slightly more maintenance costs compared to the other quarters, and there is nothing dramatic behind that. The property expenses in the earnings capacity is still a good guidance for the coming 12 months. Also, we have had an insurance event where a roof was partially punctured in a storm in April, where solar panels blew off their mounts. The property expenses were negatively affected by around SEK 3 million, while the other income line was positively affected by roughly the same amount since the cost was reimbursed by the insurance company. Last, as I have explained many times before, there is an internal fee for property management, which we have reclassified and moved up from the central administration to the property expenses, impacting the property expenses by SEK 16 million year to date.
Philip Löfgren: This also affects the operating margin and the adjusted operating margin on a last 12 months basis, which came out at 90.2% and 95.1%. If we then exclude the reclassified internal property management cost from the net operating income, the NOI in the like-for-like portfolio has increased 2.3% in the period. Profits from property management for the quarter increased 33%, and if adding back the items affecting comparability in Q3 2025, the increase was 23%, where the net financial income was less in Q3 than in Q2. Looking at the period, the increase was 29%. Profit from property management per share increased 23% for the quarter and 21% for the period. Looking at the last 12 months basis, the increase was also 21%.
Philip Löfgren: For the transaction we closed in Q3, which includes the properties in Finland and the DSV terminal in Stockholm, we have chosen to initially have the loans floating due to the volatile interest market. This explains why the hedging ratio decreased from 75% to 67% in the quarter. We monitor the volatile interest market daily and will take actions when we find opportunities. In the short term, we aim to keep the interest maturity at current level or higher, while in the long term, we aim to have it much longer. Looking at the credit, the bond loan of SEK 850 million is maturing in Q1 2028, which gives us time to plan the refinancing.
Philip Löfgren: Looking at the bank loans maturing one to two years from now, we already have multiple discussions in prolonging the loans in advance, some even with better financing terms such as lower margins and lower amortization. The largest loan facility in the SEK 3.5 billion maturity is a SEK 2 billion loan facility that matures in Q4 2027, and we expect that loan facility to be prolonged in the beginning of 2027. Looking at the key metrics on the right-hand side, the loan-to-value ratio has increased a bit in connection with the completed transactions, where we have secured initial LTV of around 60%.
Philip Löfgren: As I have mentioned before, our stance is to keep the loan-to-value sub 55% long term. With the recent closing of the SEK 1 billion Velux transaction in Denmark, our loan-to-value will still be below 55% plus having liquidity for future capital allocations, such as asset acquisitions.
Philip Löfgren: Looking at the debt portfolio, we see a good appetite from Nordic lenders in the banking systems, where we can compare multiple bank offers before we pick the one that suits us best in connection with the lending in assets acquisitions. Today, we have engagements with around 14 different senior banks, and as a result of this, the terms are getting better for every quarter. Year-to-date, the average banking margin was down 20 basis points and the average amortization rate is down 0.6 percentage points. As you can see to the right, we have managed to renegotiate or refinance bank debt of SEK 3.2 billion, resulting in an average 48 basis point drop in margin. We expect more of these effects from upcoming refinance events, though with lower drops, but possibly lower amortization rates in order to free up cash flow.
Philip Löfgren: All of our financial targets and limitations look solid, and the one that we tend to focus on the most, the profit from property management per share, is the most promising. Comparing the outcomes to the earnings capacity, where the profit from property management has increased 27% on a year-on-year basis, we expect the percentage increase to be well above the target of 15%. NRV per share excluding dividends, is in line with the 15% target on a last 12-month basis. The loan-to-value is at a comforting level, and the ICR increased a bit from the last quarter. With that, I will hand back to Niklas for some closing remarks.
Niklas Zuckerman: Thank you, Philip. As we have said, very active Q3, and also very active 2026 for Logistea. We have acquired properties at a value of SEK 3.6 billion, net letting of SEK 23 million, reporting stable and increasing numbers for the quarter. We have an income from property management per share in the run rate of SEK 1.55. We have now reached SEK 20 billion worth of properties in total, of which SEK 1 billion in Finland and SEK 2 billion in Denmark. As we have said, very happy that we have entered the Stockholm market with almost SEK 1 billion worth of real estate in Spånga, on this cross-dock terminal leased to DSV. Happy with the quarter and looking forward to do more of the same in Q4. Thank you.
Philip Löfgren: With that, we will open up for questions.
Operator: If you wish to ask a question, please dial #5 on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial #6 on your telephone keypad.
Philip Löfgren: I think we will start with written questions, and I can read this one here. Mind you that the asset base purchased through buybacks are lower risk. How do you factor that in when considering the buyback option? Also, the current share price is below what is used in the example. Yes, we used the average price in Q3 at 13.11 in the calculation there, and the share price now is 12.40. So the percentage of EPS uplift should improve versus example, all else equal. With that considered, will you consider doing a fixed-price tender offer of the shares if they continue to trade significantly below NAV as they do now?
Niklas Zuckerman: Yeah, it is a fair point, obviously. The answer to the question is that we will more or less each and every week evaluate where should we spend the money, on transactions, on buybacks or investing into the portfolio. It will obviously vary over time with the share price, what type of real estate can we find, at what risk. You are correct in the sense that obviously it is less risky to buy back shares, but also one should remember that when we buy real estate, looking at what we have done this year, we are talking nine-year leases with extremely stable tenants. For instance, the recent transactions with DSV and Velux, they are top 10 companies in Denmark. So we are talking extremely large and profitable tenants.
Niklas Zuckerman: It is always a risk with buying something, but the risk associated with the transactions that we undertaken recently is low, to put it that way. But as we said in the presentation, it is worthwhile to say again, at every single decision, we will look at, obviously, the share price and what yield we can get on the buybacks versus a transaction. Also, as said on this slide, over time, we can reinvest the NOI or income from property management that a property will yield. So over time, it will be better to do a property transaction if that day one is better than buying back the shares.
Philip Löfgren: Yeah. Let us take the questions from the queue here.
Operator: The next question comes from Philip Hallberg, from Nordea. Please go ahead.
Philip Hallberg: Thank you. Good morning. I was a bit late to the presentation, hectic morning here. I am sorry if I am asking something that you have discussed on the presentation. Just a quick one regarding your recent announced acquisitions. Just what kind of investment capacity do you think that you have right now, looking over the coming 12 months?
Niklas Zuckerman: Without giving you an exact number, we still have headroom or possibilities to acquire hundreds of millions of real estate. If interesting opportunities occur, we should absolutely be able to act. A bit to answer on the previous question, it could obviously be buyback or it could be investments into the portfolio or buying real estate. But still call it decent or even significant amounts that we could continue to grow.
Philip Hallberg: Yeah. Okay. Also, if you do find new deals that are attractive, should we expect you to keep funding these deals with shorter interest maturity as long as we have these kind of swap rates that are currently on the screen or at least as volatile as they are as of now?
Niklas Zuckerman: We discussed this in depth yesterday on the board meeting, and we are not looking to be any shorter. One should expect us to at least keep the hedging ratio that we have today, and over time it should be increased. One should remember that a company like us with the large yield gap, we could hedge much more if needed or if we decide to do so. To answer the question, not shorter than we are today, more looking to be more hedging over time.
Philip Hallberg: Okay. Also, as you are very active in the market, it is always interesting to hear. Have you seen any indication that yields are maybe on the rise, or are sellers slow to adjust their expectations regarding price and yields?
Niklas Zuckerman: I would say it is a mixed bag as it has been for the past 2 years or so. Taking the DSV transaction outside of Stockholm, 7% yield for 7 plus 1 year lease on a cross-dock, that is high obviously, whereas we see other transactions where yields are much tighter. For a company like ours, we spend a lot of time on the transaction market. We believe that there are still good deals to be done, and we were extremely happy with what we have done during Q3. A mixed bag to answer the question.
Philip Hallberg: Okay. Thank you very much.
Niklas Zuckerman: Thank you.
Operator: The next question comes from Emil Ekholm from Pareto Securities. Please go ahead.
Emil Ekholm: Hi, morning. Just some question on Lockryd. Maybe you can describe us a bit about the negotiations with the municipality. How are they progressing and what steps would you say remain before we can see a signed agreement?
Niklas Zuckerman: Sure. It is ongoing discussions and negotiations with the municipality. I would say, as in a normal transaction, the next step is basically to sign the binding sale and purchase agreement.
Emil Ekholm: Okay. When would you expect that to be concluded?
Niklas Zuckerman: Without promising too much, one should also bear in mind that we have a municipality on the other side of the table, meaning that they will need to take it to the kommunfullmäktige, et cetera, but within fairly short.
Emil Ekholm: Okay, thanks. In the Q3 report on the Lockryd description in your projects area in the report, you removed a sentence that said, "Initial establishments may be commenced within the next 12 months." How should we read into that?
Niklas Zuckerman: Not much, to be honest. We are still in discussions with potential tenants, it could well be that we start production for a new tenant within the coming 12 months. We don't want to overpromise anything, but nothing has actually changed since the last quarterly report.
Emil Ekholm: Okay. That is fair. Just your own view, what type of tenant would you prefer in the area, like a co-locator or a hyperscaler, if you were to choose yourself?
Niklas Zuckerman: Now you are talking the data center, and one should remember that obviously a data center is one thing, but there is much, much more square meters on that site for other types of businesses. I do not want to comment too much on potential tenants. We are in discussions with both the data center part and other types of tenants. I think it is better that we communicate once we have signed something.
Emil Ekholm: Yeah. Makes sense. Do you have permits approved to be able to build data center?
Niklas Zuckerman: The zoning plan is in place. For all type of buildings, you need a building permit. As long as the building permit is in line with the zoning plan, you should be okay. That would go for both data centers and other type of businesses.
Emil Ekholm: Okay. Perfect. Very clear. Thank you. That is all for me.
Niklas Zuckerman: Thank you.
Operator: As a reminder, if you wish to ask a question, please dial #5 on your telephone keypad. The next question comes from Niklas Wetterling from SB1 Markets. Go ahead.
Niklas Wetterling: Good morning. Just one short question here on paid tax, which has been in upward trend here, both in the quarter and on a rolling 12-month basis and has grown faster than the profit from property management. Do you have any comments on paid tax and if the last 12 months is where you will be going forward as well?
Niklas Zuckerman: Yeah, sure. Yes, we have for Q3, the percentage paid tax compared to profit from property management is a bit higher. That has to do that we have had carried forward losses in especially our Nordic portfolio that we've
Philip Löfgren: used them.
Niklas Zuckerman: used them all, basically. Then we usually have a bit higher paid tax in percentage now in Q3. Then when we do the full tax optimization in Q4, the year paid tax usually comes down to around 10% of profit from property management. So I would estimate that going forward as well, maybe a bit higher.
Niklas Wetterling: Okay, thanks.
Operator: There are no more questions at this time, so I hand the conference back to the speakers for any closing comments.
Niklas Zuckerman: Good. No other questions or written questions. I think we call it a day. Thanks for listening in, and if there are any follow-up questions, just let Philip or myself know. Have a great day. Thank you.
Philip Löfgren: Thank you. Bye.
Operator: The host has ended this call. Goodbye.
