Platzer Fastigheter Aktie

Hi, everyone, and thank you for joining us today. My name is Johanna, and together with my CFO, Jakob, we will be presenting the Q2 results.

Good morning.

The title of our presentation today is continued high business activity and strong positive net letting. As I've said before, I have a clear ambition to maintain a high pace of business activity, and I'm proud that this quarter demonstrates tangible results from our efforts to meet our customer needs while also maintaining a strong transaction pace. Net letting for the quarter amounted to SEK 34 million, primarily driven by our office segment, which is representing historically high level. We improved our occupancy rate to 91.3%, achieved strong rental growth of 8% in our lease renegotiations, and we also maintained a high customer retention rate.

This shows that we have the ability to meet our customer needs. I also see greater activity in the leasing market compared to last year. Companies are making decisions more rapidly than they were a year ago despite continued geopolitical uncertainty, and we are successfully able to close deals.

So I'm really proud on how our organization converts local market expertise and solid customer relationships into tangible business results. And as I've been clear about earlier, we intend to continue expanding within our Industrial and Logistics segment. Last quarter, we signed a combined asset swap with Port of Gothenburg, as you remember. And more recently, we acquired another newly developed logistic property from our joint venture, Sörred Logistikpark.

And as the next step in our growth journey continues, we have also launched Arendal 5.0, our next major growth initiatives, which we will come back to a bit later. The quarter was characterized by significant volatility in the interest rate market. We continue to experience strong support from our banks and have not seen any material changes in the lending margins, either upward or downwards. In the bond market, credit spreads have continued to tighten. Overall, we see our core business delivering strong results with high business activity, strong net letting transactions and successful project execution and reinforce one another and driving continued our growth.

Looking at the numbers for the quarter. Overall, we delivered a growth in both rental income and operating surplus, resulting in a 6% income from property management per share. The improvement in rental income and net operating income was driven by indexation, lower rental discounts and contributions from our recent acquisitions, [indiscernible] and Mimo. We also continue to improve our net financial items despite a somewhat higher debt level. At the same time, we maintained or strengthened our key financial metrics while completing investments, executing share buybacks and recognizing unrealized negative property value changes due to revised CPI assumptions. All of this was achieved while maintaining a strong and stable financial situation.

Net letting amounted to SEK 34 million, as I mentioned, and that is the positive trend that we've had for 3 quarters -- consecutive quarters. And this is actually the highest level of net letting in our existing management portfolio since our IPO in 2013.

Our occupancy rate continues to improve with 0.6 percentage from last quarter, it's now 91.3%. And the majority of the new leases that were signed in our existing office portfolio. Tenant notifications of lease termination remained low this quarter as well, and that demonstrates our ability to successfully renew leases and meet our customer needs. In those lease renewals, as I mentioned before, we have a strong rental growth of 8%. And the largest single letting was actually done in the office segment of 8,000 square meters in Tennet. That's most likely one of the largest lease agreements signed in the Gothenburg market during Q2. is Tennet the same property that Nordea will vacate in March '27. And we are, of course, very pleased that our ongoing repositioning of the city block, including new restaurant concepts, conference and gym facilities is already showing results in our letting. And that is also well ahead of Nordea's vacancy.

Here are some of the data around that office lease with AFRY. For AFRY the decisive factors for their future office location was the close proximity to the central station, of course, as well as our strong focus on the re-use and circular material choices through our carefully developed sustainable concept. And this is tangible example on how our long-term sustainability strategy creates real business value.

We have acquired a modern logistics property, as I mentioned, from the joint venture Sörred Logistikpark. Speed is the tenant and is fully let, and we took position 1st of July. The underlying property value is SEK 570 million and this is the last unit that is developed in our joint venture with Catena [ Bocar ]. Here is a brief overview of some of the other lease agreements, grand openings or lease renewals that we have been entrusted with from our tenants.

I also want to touch a little bit on the Gothenburg market. If we start with the office market, the leasing activity is higher than it was a year ago, as I mentioned. The rental levels remain stable, although the competition is still quite intense and the vacancy rate is high, it's around 15%. Prime yield stands on about 4.55% while prime office rentals are flat. And with top tenants of -- top rents reaching above SEK 5,000, SEK 6,000, but the -- [Foreign Language].

Okay. So I would like to touch upon the economic tendency indicator and also the office and industrial and logistics markets. The leasing activity, as I mentioned in the office market has been higher than it was a year ago. Rental levels remained stable, there is a quite tough competition. That's quite intense, and the vacancy rate is around 15% on the market due to office construction -- new office construction that was added '21, '22. Stable prime yields and yes, quite a good demand in the central location of the city.

The industrial and logistics market, the demand remained strong in both the leasing and investment markets with prime yields that are slightly going down to 4.8% and rentals are slightly up, and we see continued growth in e-commerce, which is, of course, supporting the market. If we then look at the economic outlook of Gothenburg region, we are in normal economic environment with domestic demand serving as the main growth engine supported by household consumption, retail and a strong hospitality sector.

The export weighted GDP growth for the region is forecasted at 1.7% in 2026. It's slightly lower than previously due to the recent geopolitical tensions in the Middle East. Employment remains resilient with a positive job growth for 10 consecutive months, while many companies remain cautious of employing. There are also some signs of expansion. For example, Volvo Trucks that recently announced plans to recruit 300 employees. The manufacturing sector is still experiencing relatively weak conditions. However, Sweden's Purchasing Manager Index has improved for the third consecutive month. And the new incoming orders are also increasing.

Looking further ahead, the region's growth and employment prospects continue to be underpinned by strong long-term structural fundamentals and one such fundament is the Port of Gothenburg. The port continues to strengthen its position and is the largest port in the Nordics and it's actually the main artery of Swedish Trade and Industry. More than half of Swedish container traffic passes through the port, while also a new liquefied biogas facilities being developed to support the transition of shipping and heavy transport in the industry from a sustainable point of view.

Containing imports continue to increase. We are at the balance between export and import of 50-50 split right now. And the vehicle handling has increased by 15% during the last quarter. Energy volumes over [ KAI ] rose to 19% driven of a strong demand for redefined products over the regions refineries. These are some of the areas that underlies the importance of Port of Gothenburg. It's not only important for the region, but actually from Sweden as a whole. And that's also why Arendal is one of the country's most strategic locations for future industrial and logistic growth. And that also sets the stage of our next phase of growth.

Since we entered the Industrial and Logistics segment in 2016, we have built a dedicated organization and expertise and grown our portfolio and is now valued to about SEK 7 billion. And over the same period, we have developed and acquired more than 425,000 square meters of lettable area. We call the next chapter of our Arendal expansion. Arendal Generation 5.0. And that's our long-term vision for industrial and logistics hub that continues to evolve in line with the need of the industrial industry. What we are adding here is approximately 200,000 square meters of new industrial and logistics space is representing around SEK 2 billion in project investments. Part of this development, we will also demolish approximately 25,000 square meters of old buildings that have reached their end of the technical life span. So over the span of 7 years, within the existing zoning plan, we will develop what we call Arendal Generation 5.0.

And with that outlook on the future, I will hand over to you, Jakob.

Thank you, Johanna. So let's go in and have a look at the financial performance for the quarter. We delivered growth both in rental income, operating surplus and income from property management.

Rental income and operating surplus both increased by 2%. And Property costs were essentially unchanged compared with the same quarter last year, and the growth was mainly driven by our like-for-like portfolio. With continued improvement in net financial items, income from property management increased by 4% or 6% on a per share basis. So overall, a solid quarter, both operationally and financially.

Turning to the property portfolio. The value remains just above SEK 30 billion. During the quarter, we recognized an unrealized value change of minus SEK 125 million. This was driven by a revised inflation assumption where the indexation assumption for 2027 was low from 2% to 1%. The yield in the valuation remains unchanged at 5.1%. The investments for the quarter amounted to SEK 76 million, somewhat higher than last quarter, but still at a relatively modest level.

Our loan-to-value was unchanged, 47% of total assets. And 49% on the property LTV, and these are levels that we are comfortable with. After the quarter closed on July 1, as Johanna mentioned, we completed the acquisition of the [indiscernible] logistic property from the joint venture with Catena. And the value is SEK 570 million. At the same time, we received a dividend from the joint venture of SEK 108 million.

So that will come into the -- from start in the Q3 figures. In Q1, we announced the transaction with the Port of Gothenburg and the expected timing for the close is still around year-end. And in that transaction, we are a net seller with approximately SEK 684 million. If we go in the bottom, you see that our net financial items improved by SEK 6 million or 5% to SEK 130 million despite the slightly higher debt volume. The improvement was driven by lower Stibor as well as lower lending margins in our portfolio. The stronger operating earnings and improved financing costs increased our interest cover ratio to 2.6 while net debt compared to EBITDA was 10.8. Overall, we continue to maintain a strong and stable financial position.

To summarize, we delivered good operational growth, improved net financial items. And together with the share buybacks completed during the period, a 6% increase in income from property management per share. If we have a closer look at the drivers behind the quarter's earnings and start with the rental income on the top growth in the like-for-like portfolio was mainly driven by indexation and lower rent discounts. And the decline in project development that reflects by the Mölnlycke Healthcare that vacated it premises last summer. We have leased out part of that space now with occupying new tenants in the end of this year.

The positive contribution in transactions in rental income mainly comes from the acquisition of the industrial property in Tuve, while the office property Mimo in Mölndal also contributed. Altogether, rental income increased by 2% or SEK 7 million. Property costs, as mentioned, was pretty stable, only increased by SEK 1 million, so essentially flat. And as a result, the net operating income or net operating surplus increased by SEK 6 million to -- or 2% with a like-for-like portfolio also delivering a 2% growth.

Our surplus ratio was 81%, which is a level we are very pleased with. So overall, we continue to grow income while keeping costs under control. Leasing remains one of our highest priorities, and we are pleased to deliver positive net leasing again this quarter, as Johanna mentioned. And we are now beginning to see that positive net leasings that we have had in the last quarters to translate into earnings through completed move-ins and also, of course, improving our occupancy rate.

Turning to financing. We continue to maintain a very strong financial position. Market conditions remain favorable throughout the quarter. Credit margins continued to tighten. While interest rates remained volatile. Despite the short-term movements, the underlying trend during the quarter was downward on interest rates. The bond market remains strong, and we estimate that our credit spread now is close to all-time low for us.

During the quarter, we issued SEK 400 million of bonds and extended interest rate swaps totaling to SEK 550 million. Overall, debt increased slightly during the first half of the year. Our average closing interest rate, including commitments, was 3.43%, 3 basis points lower than the end of the previous quarter. and that was mainly reflected by lower Stibor. One year ago, the corresponding figure was SEK 356 million. If we look ahead for this year, we believe that our average funding cost is now at a sustainable level, all else being equal.

Our share of sustainable financing increased from 75% to 81%. And I will come back to that in a moment. We remained active in the fixed income markets during the quarter, extending SEK 550 million of swaps. As a result, our average interest rate duration increased to 2.9 years. As you can see in the chart, we have a well-balanced maturity profile over the coming 5 years. while we continue to build duration beyond 6 years. Our average credit maturity remained stable at 2.8 years. And as I said before, the objective is to have a well-diversified maturity profile across the coming years. If we look at the first year, around SEK 1.5 billion of debt maturing related to commercial papers.

Our sustainability transition continues and is fully integrated in both our business and our financing. The share of sustainable financing increased to 81% during the quarter, up 6 percentage points. Together with Swedbank, we introduced an updated sustainability-linked financing framework during the quarter. In addition to energy efficiency and reducing carbon footprint of new developments, the framework now also includes KPIs for circularity and resource efficiency in tenant improvements.

By linking both time and capital, not only square meters to climate impact, we create stronger incentives for resource efficient project execution. Significant share of our carbon footprint comes from tenant improvements and refurbishments. It's therefore, encouraging that in our largest leasing transaction this quarter, both we and the customer place strong emphasis on reuse and circular material choices. And as mentioned before, our concept obvious interior choices, helps both us and our customers make climate smart decisions in a simple and practical way.

The share, on April 17, the Board approved a new share buyback program of SEK 200 million. And during the quarter, we have repurchased shares of SEK 97 million. Combined with the previous program, we have now total buybacks now amounting to 2.3% of outstanding shares. Share buybacks remain important tool for us for creating long-term shareholder value.

To conclude the delivery in the quarter, we report 2% growth in operating surplus, 6% growth in income from property management per share and 2% growth in NRV per share. We also delivered strong net letting of SEK 34 million, providing good support for future earnings. Combined with the LTV of 47% and the net debt to EBITDA of 10.8%, we remain in a strong financial position.

That gives us the flexibility to continue allocating capital actively and investing in future value creation. With today's stable cash flow, we have investment capacity of more than SEK 1 billion per year, while maintaining our current LTV ratio.

We are creating growth through active asset management, and we also create extra leverage through project development and transactions. And some highlights that I want to mention so far that we have concluded during this year is then the acquisition of Sörred, Sörred Logistikpark. We have also done an asset swap with the Port of Gothenburg, where we acquired these modern logistics property, and we also divested 9 office buildings together with [ KAI and Water ] area.

As Jakob mentioned, the completion is expected for Q4. And the process of approval by the City Council is proceeding according to plan. We also have projects that are running. The Assa project of 10,000 square meters is one of those. We also have signed a letter of intent with the City of Gothenburg earlier this year, where we gear up for a future of its development rights of about 60,000 square meter in absolute prime location adjacent to the Central Station.

And now lately, the launch of Arendal Generation 5.0. The SEK 2 billion investment development that we just spoke about. In addition to that, we have, of course, our share buybacks program that continues to provide additional leverage to the shareholder value. And our conclusion is that the strong delivery, a high level of business activity and capital allocation gives us a path to increase further shareholder value in the future.

So looking ahead, our focus is on 2 priorities. Firstly, we will continue to maintain a high pace of business activity here and now. reducing vacancies, strengthening cash flow and remaining a fast commercial and flexible in every customer dialogue. Secondly, we will continue to build on our next phase of growth. We will do this through portfolio rotation, project development and by continuing to expand our industrial and logistics portfolio. Arendal Generation 5.0 is a clear example of this. demonstrating how we leverage our unique position in the Gothenburg region and how we create new business opportunity and deliver long-term shareholder value.

So a strong financial position and our profound local market expertise. Our organization that works closely with the customers, we are well positioned to continue to create this value. even if the environment in the surrounding world remains uncertain.

With that, I would like to thank you for your attention, and we are now happy to take your questions.

Welcome everyone joining us today for our first quarter interim report. My name is Johanna, and I will be copresenting together with my CFO, Jakob.

We entered 2026 with a high level of business activity, similar to the previous quarter, in fact. As I mentioned before, maintaining a strong business momentum is a key ambition of mine, and I'm proud to see that this quarter, we are seeing results from our efforts, both in meeting customer needs, our letting activity and on the transaction side. Despite a turbulent macro environment with geopolitical tensions and ongoing conflicts in the Middle East, we have successfully closed several important agreements.

We delivered a strong letting performance, including several large lettings and the successful renegotiation stock with solid rental growth. Net letting amounted to SEK 20 million, and we improved our occupancy rate. All of this net letting was generated from our offices portfolio.

We'd likely have not seen yet the full long-term effects of the war in the Middle East, particularly regarding energy prices, inflation and interest rates. But we are noting some volatility in market rates and slightly more cautious focus in the Swedish economy recovery. So far, we have not experienced any slowdown in corporate decision-making but we remain mindful that this could change. My guiding principle, however, is to focus on what we can control, and that is where we put in our efforts. That said, here and now, we are delivering.

Speaking of our strong business momentum, most notably, we recently signed a major combined asset swap with the Port of Gothenburg, creating multiple positive effects. In addition, in January, we signed a letter of intent regarding future land allocation adjacent to Gothenburg Center Station, both of which I will return shortly. Our finance function has also maintained a high level of activity, contributing positively to our earnings from property management this quarter. We also repurchased SEK 95 million of our Class B shares ahead of the AGM in March.

Looking at the figures for the quarter. Rental income decreased by 2%, driven by net divestments last year and vacancies. Net operating income decreased by 4% due to these factors, of course, as well as high costs related to cold and very snowy winter. At the same time, we report stable income from property management. It's up 1% and is supported by our active financing efforts. We have improved our net financials driven by lower average interest rate in our portfolio combined with reduced debt. We have also continued to strengthen our financial position through extended capital duration and by entering our -- into new derivatives. That is a way that we navigate in a more volatile interest rate environment. Of course, our concluded transaction agreements also contribute and provide increased flexibility going forward.

Diving into our asset swap with Port of Gothenburg. We have completed this strategically important deal with the Port of Gothenburg and that strengthened our growth journey within the industrial and logistics segment so let me elaborate a little bit on the concluded deal and what we divest and what we acquire. The transaction makes us a net seller releasing approximately SEK 684 million in capital. The divestment is made slightly above book value. Closing is extended to no earlier than Q4 2026 and is subject to approval by the Municipality Council. This is a standard for municipality-owned entities. We divest land, water and office building, and we buy a logistic building of 24,000 square meters. This is what we divest, it's 9 office buildings and the occupancy rate is 71%. And we acquired this modern logistics building with Schenker as a tenant. And we have also an expression of intent regarding future development right of 9,000 square meters adjacent to this building.

If we look at this picture on the left side, you can see Port view. The divestment includes 22,000 square meters of logistic development rights that we sell. In exchange for this, we get this modern income-generating assets in one of the strongest logistics location in the Nordics. And we remain -- we have approximate 25,000 square meters that we retain. Overall, this is strategically important. It strengthens our portfolio, it releases capital for continued growth and contributes to the long-term development of both Gothenburg and the port of Gothenburg, something that is really positive also for our own property assets in Arendal. This is a clear example of how we actively manage our portfolio today, but we're also building for the future. When the office market and the employment pick up again, we will be in a position to start larger office projects. While that might take some years, we are already preparing for it. We have the building rights of two different areas. We have both Stora Bla comprising 40,000 square meters and recently, we have also signed a new letter of intent with the City of Gothenburg for few future building rights adjacent to Gothenburg Central Station. It gives us approximately 100,000 square meter development potential with zoning plans in place and a potential to start projects somewhere between 2028 and 2032 so we are very well positioned to launch projects when the market is ready, and that will give us a clear leverage on value creation.

Here, we see two of the projects that we are currently running. One is Assa in Port view, which we have previously not communicated by name. And the other one is a joint venture in Sorred Logistikpark. This is where we have an option to acquire the asset upon completion.

Looking at net letting which remains strong in this quarter at SEK 20 million, all of the contribution comes from our office portfolio. In fact, we need to go back to second quarter of '24 to find a single quarter with a higher volume of renegotiations and a more positive outcome. We have completed several new lettings, including 2,700 in Lilla Bommen and 3,300 square meters in Gamlestaden. At the same time, we have seen a strong ability to renegotiate with large volumes of SEK 64 million and a solid rental growth of 6% in those renegotiations. Our tenant, Ramboll has indicated that they will leave Garda in August 2027 for Grand Central. They currently lease 4,900 square meters. The tenant has not formally giving notice. Hence, it does not reflect in the net letting of this quarter. If we look at this picture, we can see some of the activity that I have mentioned already.

If you then look at our customer base across our [ 724 ] lease agreements that we have at the moment, 10 largest tenants account for 33% of our total contract value. And we have a very broad mix of tenants, including hotels, public sector, industrial and office users and that creates a resilience and the stability for us. During this quarter, we increased our economic occupancy rate from 90.4% to 90.6%. And we reached a surplus ratio of 77% in the quarter and 79% if you look at the year-to-year. In terms of area distribution, our portfolio roughly is evenly split with industrial logistics and projects accounting for about 50% and the other segment offices, about 50%.

So a little bit about the Gothenburg markets. At present, we are in a normalized economic environment in Gothenburg, slightly above 100, and the manufacturing PMI is at its highest level in 4 years. The recovery is largely driven by households and the service sector has strengthened to around 100, which is supportive for office demand over time. Unemployment has also decreased slightly to 6.4%, is still the lowest figure in Sweden. That said, we remain humble regarding the potential longer-term effects of geopolitical uncertainty.

Gothenburg benefit from a unique mix of large international companies and innovative startups, combined with a highly educated workforce. Around 1 in 10 people holds a Master of Science Engineering. Gothenburg also plays a leading role as a center for R&D and innovation, acting as a strong engine for growth. It's also Sweden's main export hub. And despite the trade war, export has remained surprisingly resilient last year, around 10% go to the U.S. and 70% to Europe. Global trade patterns are currently shifting through new trade agreements, which will be important to follow going forward. The Port of Gothenburg also have reached new volumes of records last year, once again, I would say.

The business landscape is broad and dynamic and ranging from companies like Saab and growing defense sector to significant investment in life science, which is actually currently the fastest-growing segment for us. We are more than just an automotive hub although it is worth noting that Volvo car's new EX60 is being developed and produced here in Gothenburg with stronger-than-expected sales. And looking especially at manufacturing, and the automotive sector, the industry is facing pressure from China and the stronger Swedish krona. However, according to the latest confidence indicators from Nordea and the National Institute of Economic Research based on very recent data from end of March. In other words, when the Middle East war had started, the sentiment has recovered to more normal levels.

So let us look into our segment relevant to these businesses, industrial and logistics. We experienced a strong transaction market and high demand from investors with yields well below 5%. There is also strong demand in the letting market and the low vacancy rate in prime locations of 4%.

Turning to the office market in Gothenburg. The letting volume has decreased to around 75% of the 2024 levels. We are now in line with the same levels as 2019. Activity remains solid, though with similar numbers of leases signed, but smaller average size of each lease. So the average size is around 500 square meters. Rental levels remain stable with prime rents of about 4,200 [ kilometer ] per square meter. Vacancy has increased to around 14%. It's primarily driven by significant new office supply during 2021 and '22. That was equivalent to 10 years of new supply that was put into the market in two years. This quarter, it also includes [indiscernible] in the vacancy numbers. Hence, it's going up.

Looking ahead, no new project starts have taken place last year and also not so far this year. And we have now a 60,000 square meter that is currently under construction with completion in 2027, of which about 4,000 square meter remains unlet. So beyond that, new supply is very limited in the next few years. After 2028 and '29, we have virtually no additions, so far, being added to the market as a project like this takes about 3.5 years to produce.

So a reduction of vacancy will take time, but it do require that employment rate and the growth in the office intensive sectors goes up. I would have a look at that. Unlike some other cities in Sweden, the employment rate in office intensive sector has not turned down actually during these 3 years of recession, but it has flattened out. Historically, though, the office intense sectors have grown by around 4% annually in Gothenburg, and that is really high. Going forward, a more sustainable growth rate could be around 2%, assuming no major macro disruption happens and that the expected turn in economy will take place, and that is numbers according to Citymark's newest analysis.

And with that, I also look into how our portfolio looks. So looking at these sectors, this is our portfolio today. In summary, we contribute -- we continue to see stable property values totaling just above SEK 30 billion, with yield requirements remaining around 5.1%, in line with previous periods. Market yields in the office segments are also supported by recent transactions, including Elekta's acquisition from Technopolis and Folksam's purchase of Hertziahuset from Vasakronan.

With that, as a starting point, I will hand over to you, Jakob, to take us through the portfolio and financial key figures in more detail.

Thank you, Johanna. So if I start where Johanna left off with our property portfolio, we continue, as Johanna said, with a stable property values just above SEK 30 billion. In the quarter, we have an unrealized value change of SEK 40 million. That's driven by increased cash flow from lettings and renegotiations. As Johanna said, the yield is the same as year-end at 5.1%.

The investment volume was relatively low in the quarter, SEK 57 million, and the LTV ratio on total assets remained at 47% just as at year-end. If we look at the LTV ratio for our properties, it's amount to 49%, that as well as Q4 '25. If we look at the earnings, we delivered growth also in this quarter when it comes to income from property management, plus 1% compared to Q1 2025. If we look at the rental income, it decreased by 2% to SEK 435 million compared to SEK 445 million in the first quarter of 2025. The decrease is mainly driven by that we have made divestments and that we have a higher vacancy in the portfolio.

The rental income of SEK 435 million, as said, if we compare that to the indication; we had in the earning capacity on January 1, the rental income here exceeds the earning capacity by SEK 13 million. And that's mainly explained as it also was in the two previous quarters by rent supplements and short-term income, such as parking. The heavy wind term meant higher cost for us especially for snow removal and heating. This is reflected in our operating surplus, which decreased by 4% compared to 2025. And that's SEK 15 million lower than first quarter 2025.

As already mentioned, we still report growth in profit from property management of 1% and that's due to that we have improved our net financial items by SEK 90 million to SEK 126 million. And that's driven both by lower debt volumes, lower rent levels and better margins. Compared with previous quarter we improved the financial items by SEK 7 million. And the improved net financial items enabled us also to increase the interest cover ratio to 2.6 while the reduction we had in operating surplus made that we have an increase in net debt compared to EBITDA up to 11.5% for the quarter. We have continued to work actively with the financing during the quarter, which I will return to. If we summarize, we continue to have growth in income from property management. We have stable property values and stable financial key ratios that have strengthened over the last year.

Finally, I would like to mention profit after tax, which in the quarter amounted to SEK 268 million or SEK 2.26 per share, and the earnings were positively impacted by unrealized value changes in financial instruments of SEK 98 million.

So then let's look a little bit more closely at the reasons for the development during the quarter divided into our 3 pillars: like-for-like, projects and transaction. We start with revenues. We see that we are increasing revenues in the like-for-like portfolio. And that's mainly a net effect of index increases and higher vacancies. The decrease of SEK 8 million in projects mainly refers to the fact that Molnlycke Health Care left its premises in our property and Gamlestaden started in this summer. Part of that premises, we have leased out, 3,300 square meters and that will be occupancy late this year. The decrease in transaction is a net effect of the sale of the English school in Q1 2025 and the acquisition of the industrial property in Tuve that we made in the autumn. In total, it means that we reduce the revenue by 2% in the quarter.

In the middle row, we have our property costs which we increased by SEK 5 million or 5% compared with the corresponding quarter last year. And that mostly is in the like-for-like portfolio. And as I said, is explained by the cold and snowy winter. Both heating costs and snow removal increased sharply totaling SEK 5.3 million and SEK 4.8 million of those were in the like-for-like portfolio.

In projects, costs decreased due to a one-off payment in 2025. And in transactions, there are increased costs for property tax, but also media due to the winter. In total, it means that we are reducing the operating surplus in both the like-for-like project and transaction by a total of SEK 15 million or 4%. The surplus ratio for the quarter was 77%, but 79% rolling 12 months. In summary, revenues declining as expected from that we have been a net seller in the previous year as well as that we have a higher vacancy in the office portfolio. This, together with increased cost for the winter results in a reduction in the operating surplus overall.

As before, we are fully focused on vacancies and lettings, and we're pleased to see that we have shown positive net letting in this quarter as well. We are also continuing our strong cost focus where we were successful in the previous year.

So let's look at our financing. We have a stable financial position. As mentioned, we have strengthened our credit-related key figures over the past year. If we look at the market, the quarter began at the end of last year with a strong banking and capital market with continued decline in credit margins. And in connection with the conflict in the Middle East, the situation changed rapidly, especially in the fixed income market with higher volatility and increased interest rates, especially in the short term.

On the bond side, we feel that it's relatively stable. We estimate that the credit spread for us has increased about 15% since the bottom, which means that we are back on the same levels as in the autumn 2025.

During the quarter, we were active with our financing. We refinanced bank loans of approximately SEK 1 billion and issued SEK 150 million in bonds. And in February, before the conflict in the Middle East, we extended interest rate swaps of SEK 700 million. The net outgoing debt increased slightly during the quarter.

So as you can see, the average interest rate, the closing average interest rate was 3.46%, including commitment fees. That is 1 basis point higher than the closing at year-end. We had during the quarter, rising interest rates with 9 basis points but they were offset by lower margins, so we could basically stay at the same average rate. For both net debt compared to EBITDA rolling 12 months, the share of secured financing and the LTV ratio have been small movements during the quarter. The interest cover ratio, the ICR rolling 12 months increased slightly to 2.5%.

In February, our rating institute, NCR, published a rating action report in which they confirmed our existing long-term BBB- rating with stable outlook, while they raised our short-term rating from N4 to N3. As mentioned, we were active in the fixed income market before the conflict in the Middle East and signed derivative contracts of SEK 700 million which allowed us to increase our average fixed interest period slightly, but rounded off 2.8 years as previous quarter.

If we look at the chart from year one and going forward, we have an even and good distribution of maturities over the next 5 to 6 years. And we have also some maturities longer than that. Of that 32% that matures within one year, 5% of those are cancelable swaps that are running. The refinancings were made in the quarter have meant that we have further extended our credit maturity and the capital duration is now 2.8 years in average from 2.7 years a quarter ago. As on the fixed income side, we aim for an even maturity for each coming year.

To sum up the financing, we have significantly improved the financial position over the last year. The growth in our earnings, combined with the larger liquidity buffer and the upgrade of the rating in 2025 has given us much better opportunities to actively work with our capital, both in the financing, but also in projects or transactions all to create value for the shareholders. An example of such a transaction is the combination deal that Johanna mentioned earlier. I will now go into more detail about the effects the transaction would have on our key figures.

As Johanna explained, the transaction means that we are net sellers in an amount of SEK 684 million which means that our loan-to-value ratio will decrease by 1 percentage point. All other things like, of course.

Based on our earnings capacity on April 1, included in today's report, net earnings capacity will decrease by SEK 75 million, while rental income will decrease by SEK 49 million and operating surplus by SEK 39 billion. Then we take into account both what we sell and that we buy, of course, so the total deal in those numbers.

If we then calculate reduced interest costs and used the average rate that we have of approximately 3.5%, it means that we will have a total effect in income from property management of approximately SEK 15 million, so a reduction in income from property management of SEK 15 million. In the office portfolio that we are selling, the economic occupancy rate is 71%, 7-1, which means that our total occupancy rate will increase by about 1% when the deal is completed. However, as a large proportion of the vacancies in what we sell are classified as projects, the transaction will have a marginal impact on the reported occupancy rate which is currently 90.6% since that is excluding land and projects.

Growth. Platzer have a long history of growth since 2013 when Platzer was listed. On average, we have grown income from property management per share by 13% per year. During the same period, the net asset value per share has grown by an average of 14% per year and the dividend by an average of 12% for the same period.

During the quarter, we continued to create value for our shareholders by being active, both in property management, projects, transactions and our financing. The Platzer share between December 10 and until the AGM on March 24, we repurchased shares for a value of SEK 95 million in accordance with the result of share buyback program of SEK 100 million. And at the AGM, there was a renewed mandate for further share purchases.

Sustainability. Our sustainability transition continues and is now fully integrated into the business. The share of sustainable financing now amounts to 75%, an increase of another 2 percentage points since we closed the year. Last time, I told you that we have a strong focus on reducing our climate emissions, especially in renovations. We are intensifying our work on circularity and resource efficiency with our concept of interior design concept, we make it easy for the customers to choose sustainable solutions and cost effectively. During the year, the concept was used in all tenant adoptions and contributed to reducing emissions by 180 tonnes of CO2 equivalents, which is the same as actually 37.5 laps around the world in a car, quite amazing.

We've been good at improving energy efficiency for many years. In this quarter, though the cold winter had an impact and we increased the energy use compared to Quarter 1 2025. But we have decreased, if we look on a longer perspective of -- decreased it 40% since 2013. This is good for the environment, for the customers and for our bottom line. Over to you, Johanna.

Thank you. I would like to sum up. We have maintained a high level of business activity during the quarter across letting, transactions and finance, and that is a pace that we intend to sustain. Our focus is clear: to reduce vacancies, strengthen cash flow and stay close to our customers. We are taking pride in acting fast, professional and being flexible in every deal. Filling our vacancies is where we create value here and now, and it will remain our top priority going forward.

At the same time, we also continue to invest for the future through active portfolio rotation, for example, such as the Port of Gothenburg deal that we described and through growth in industrial and logistics by product development and transaction and by securing opportunities for the next generations of office projects. The outlook for Swedish economy and for the Gothenburg region is improving, although it will take some time. While the global environment remains uncertain, we remain focused on what we can control and where we can make a difference. And we have proven our ability to deliver and to be long-term specialists in a dynamic growing city, and we have the same ambition going forward.

So with that, and I would like to thank you for listening, and we are happy to take your questions.

I would like to warmly welcome everyone listening in. My name is Johanna Hult Rentsch, and I will be sharing this presentation with my CFO, Jakob Nilsson. 2025 has been an intense year for us. We have been operating in a challenging market. And we have a head of high focus on close customer engagement and letting amid strong competition in the office segment. Vacancies has been both our biggest challenge and our biggest opportunity and across the organization, we have worked actively with customer dialogue and letting. We have been completing twice as many renegotiations as in the previous year. And towards the end of the year, market conditions improved as such, and we closed the fourth quarter with a positive net letting of SEK 15 million.

I will come back to our net letting in more detail later in the presentation. At the same time, we have maintained a high transaction pace throughout the year, both on the acquisition and divestment side, and this has supported our portfolio rotation. It has improved our leverage and strengthened our overall financial position. Our credit metrics, rating and financial flexibility have all improved during the year. 2025 has also been marked by uncertainty, including tariff threats and a slower-than-expected economic growth in Sweden as such.

Against this backdrop, it's particularly encouraging that we have delivered an 11 percentage increase in operating profit for the full year. I would especially like to highlight the strong performance of our Industrial & Logistics segment. With several projects underway and a very good letting activity, this segment has been a key growth engine for us. It now represents close to half of our portfolio by area, and it is a business that we intend to continue growing going forward.

If we look at the major events during this quarter, we have been particularly active on Hisingen. We secured the largest office lease agreement of the year with a global IT company, and we let out 6,700 square meter. This office lease is actually the largest lease of the year in our wholly owned portfolio. We also let 10,400 square meter to an international industrial player, and we have also obtained the building permit for Arendal Port view. And also the transfer of ownership of the previously communicated Tuve, Östergärde, acquisition that we made during the summer.

If we stay in the area of Hisingen a little bit longer and look at this part of our portfolio, which is located directly in the port of Gothenburg including Arendal and Torslanda. This is prime Nordic logistic locations with strong connectivity to shipping terminals, rail infrastructure and logistic flows. And with Stena Line's relocation of the ferry by 2030, the area is further strengthened as a transport hub offering development potential of up to 70,000 square meters of modern logistics space within the current data regulation plan.

And if we summarize 2025 in numbers, we have increased our rental income and net operating income by 5%, while the income of property management grew by 11%, and this is a strong result given the uncertain economic environment. Net letting for the year amounted to minus SEK 14 million and we have worked intensely with the leasing and renegotiating while maintaining a strong cost control within the property management. And if we look at the specific quarter, this is what that looks like. And Jakob, we will come back to this later in the presentation.

I will also like to mention the letting that we did of an office unit of 3,300 square meters in Gamlestaden. This was closed after the end of the period. And this marks the first step of letting the former head office of Mölnlycke Health Care that was vacated in the summer. If we dive into the positive net letting of the quarter, it's actually the strongest level of new letting in the existing portfolio since 1.5 years back. And this was driven by, of course, a strong activity with 23 new leases signed, and it's also a positive rental effect from the renegotiations corresponding to 4% increase. So this is actually the strongest quarter of the year. This is not including the letting of Tuve, Östergärde that I just mentioned. That lease agreement was closed after the quarter closed. But this gives us a strong and positive momentum heading into 2026, which feels really, really good.

And if we then look at the net letting for the whole year, it's amounted to minus SEK 14 million, including associated companies. And more than half of the new office leases were actually signed with existing customers or clients. And that proves that we have a very close dialogue with our existing customers, the way we should have as a local player. The renegotiated volume was about the same level as last year, but nearly double the number of negotiations compared to last year. The rental income from these renegotiations declined slightly by 2% over the year, but that's mainly due to the large renegotiation with Folktandvården last quarter, where a rental rebate was exchanged for a 6-year lease extension. And that was a balanced decision to secure a long-term income for us. And the rental level is actually on the same level. However, in that specific lease -- however, we [Foreign Language].

Okay. The net letting for 2025 amounted to minus SEK 14 million. And I would like to mention that more than half of the new office lease agreements were signed with existing customers. That shows that we managed to have a good dialogue with our clients as we should as a local player. We renegotiated a volume that is about the same volume as last year, but we've nearly doubled the number of lease agreements compared to last year. The rental income decline from these renegotiations with about 2% over the year, but that's mainly due to one large lease, and that's with Folktandvården, where a rental rebate was spread out over the whole 6-year lease period. And that is a balanced decision that we made to secure long-term income. And the main drivers during the year for the net letting is really clear that the Industry & Logistics segment contributes really well.

And also, we have contributions from MIMO, the property that we bought end of 2024. That has now an occupancy rate of 88% and the rental levels that we have signed are considerably above the rental guarantee. And the rental guarantee is now -- has now run out which means that MIMO is fully on its own, so to say, but it's going really well. While we are talking about MIMO, and that remains an important growth engine, we have signed about 5 leases and the rental level consistently is above the guaranteed rental. Why I mentioned this is because this is the main driver for the occupancy rate that has gone down 2 percentage during the year. About 1% is due to MIMO and the rental guarantees that runs out.

If you look at the tenant retention, that remains really strong, 85% and that's reflecting strong customer relationships and a very active asset management from our property management. And I would like to mention how we work with our clients. And I will give you a few examples. For instance, we work through cross-functional teams that are meeting weekly under a new initiative. And that means that we, on all levels in the company are engaged in the customer dialogues. We also offer ready-to-move-in premises through a concept called Here and Now. And we also provide prequalified and climate calculated fit-out packages to our clients.

During the year, our management team has also been strengthened most recently with the appointment of our Head of the Office business with Anders Woodall. These are our 10 largest customers, and it is a broad mix of businesses that reflects how we operate in Gothenburg and also our role as a landlord and city development of the city's business community. We know our market, and we are committed to truly understand our customers. So if you look at our tenant mix here, you can conclude that we have hotels, public authorities, and that creates resilience and stability. And I find that the work from the past year is a very good example where we see that 65% of the renegotiations during the year were concluded with public sector, for instance. So this is our mix on the total.

If you then look at the office market in Gothenburg. We have a high vacancy rate due to newly new offices that have been brought into the market mainly during 2021 and '22, where about a supply of 10 years was brought into the market over 2 years. We have no new office projects started this year or 2025, which means that there will be no new completions behind 2028 that we are aware of right now. So when we look at this, we can see that this will, by time, will the vacancy rate go down and the rental levels are also stable.

So what is driving the economic situation in Gothenburg? Well, this cycle has strengthened noticeable during the autumn. And we saw, of course, this turn down following the tariff house during the spring. But we are now back to a normal economic cycle and the recovery in the economy has been driven strongly this time by households and retail, which has improved since last time with about 10 units.

So in addition to this, the service sector has also been strengthened. The construction industry remains challenged with continued weak activity and the manufacturing sector still sits at a subdued level of 95%. It's still weak, but it's showing some resilience and significant cost-saving measures that is running through here. And I think that's really interesting if you also look at the unemployment rate. That has gone down slowly, which is now 6.4% and Gothenburg remains the lowest with the lowest unemployment rate in the country. And the labor market in Sweden shows signs of gradual improvement as a whole. And if we dive a little bit into these 2 pictures, Gothenburg is, as you know, Sweden's export hub, and that's why I bring these pictures up. So if we look at how last year actually looked like, we can see that the export-orientated economy has shown surprising resilience in 2025 despite this tariff threats and the uncertainty.

We should also remember that about 10% of Swedish exports to go to the United States and roughly 70% goes to Europe. So it's also reflecting close integration with the major global markets and the global trade patterns are currently shifting as we have heard last few days. The automotive industry, on the right-hand side, we can also see that after having an industry that has faced high pressure from China and also, of course, a stronger Swedish currency. Despite this headwind, business confidence has rebounded to normal levels again. All the demand, of course, for labor is still not fully returned.

Sweden is one of the world's leading innovation nations, and we are ranked second globally in the Global Innovation Index. And the Gothenburg area is Sweden's foremost R&D hub, and we are accounting for around 35% of the private R&D investment, and that's supported by a highly skilled talent base with a strong concentration of engineers and scientists. Actually, the most common role is actually engineer. Every 10 person in Gothenburg is an engineer. The region benefits from this diverse business landscape, which is, of course, not only cars or vehicles, but it's spanning from defense, life science and advanced manufacturing.

We have had a very strong population growth, and we have also had major investments in rail and public transport since that has significantly expanded the labor market from about 900,000 people in year 2000, and now it's up to 1.6 million, and that's supporting long-term urban growth. So we benefit from a diverse and broad business landscape, everything from SAAB's expansion within the defense industry to a growing life science focus. So our region reflects so much more than just to build cars, even though it's really exciting that we can develop and build the EX60 right here in Gothenburg.

And with that, I would like to give the word for you, Jakob, for the results and the financing.

Thank you, Johanna, and good morning, everyone. Platzer continues to deliver solid growth in income from property management. This quarter, 5% growth and for the full year, 11%. If we look at the rental income, we had a slightly lower level of rental income than Q4 2024. However, a little bit slight higher than previous quarter, Q3 of this year. Main reason for lower income this year was that in Q4 '24, there was a high impact on add-on in rents for tenant fit-outs but of course, also the higher vacancy we have now has an effect. Gladly, we continue to keep the costs on a very good level, which means that we can show a continued growth in the net operating income this quarter with 1%. And actually, the NOI margin for the full year 2025 was 79% which is one of the highest ever for Platzer.

Financial net, of course, plays an important role for the income from property management. And in the fourth quarter, our financial cost, which was SEK 8 million better than the same quarter 2024 despite higher debt. We have continued to focus the work with the finances, and I will come back to that a little bit later in the presentation. But all in all, as I said, income from property management increased by 5% in the quarter and 11% full year. And going to the property valuation and property values. They remain stable. The property values at around SEK 30 billion. And in the quarter, we report an unrealized value change of SEK 107 million, and that's basically driven by cash flow changes. The net investments during the quarter was SEK 285 million, where of SEK 169 million was the acquisition of the industrial property called Östergärde in Tuve.

If we look at the full year from net investments, we have been working with the capital structure during the year and high activity, especially the first half year with a number of sales. And so for the full year, net investment is minus SEK 448 million. And the combination of the strong underlying earnings and the stable property values and the divestments carried out has strengthened our financial KPIs in the bottom. If we look at the interest cover ratio is now at the level of 2.5. And net debt compared to EBITDA is around 11% and loan-to-value on calculated on total assets is 47%. And if you calculate that on the properties, it's 49%. And these are levels that we are comfortable with and in line, we are basically where we want to be.

And to sum up, we continue to show a solid growth, albeit a little bit slightly lower pace than previous quarters, but that's according to expectations. And we have stable property values and strong improving financial KPIs. Finally, the bottom line for the quarter profit after tax was SEK 309 million and that result was positively impacted by the value changes on derivatives of SEK 49 million. In our reports, we present our earning capacity which represent a snapshot of earnings based on the current lease agreements we have, but also on the cost side, on the current financing costs, et cetera. To illustrate how our revenues may fluctuate, I would like to use this bridge to illustrate that. Based on the earning capacity in our Q3 report, and that's as of October 1, the SEK 423 million that the rental incomes we had on October 1 indicated revenue of that in Q4.

As mentioned, the earnings capacity is a snapshot, and we have other incomes that comes during the quarter. As you can see here, one item is the accrued rent for add-ons. There is for tenant fit-outs, etcetera, that we accrued, and that amounted to SEK 6 million during the quarter. The said acquisition that we had during the quarter in the industrial property contributes with SEK 2 million. And then we have other items amounting to SEK 7 million. And that is, for example, parking income, insurance income, rapid move-ins, conference income, et cetera. So all in all, that sum up to the quarter's income of SEK 438 million. And if we sum up those total add-ons during the quarter, except for the -- what we have in the contract is SEK 50 million and basically at the same level as in Q3.

And let's take a closer look at the key drivers behind our performance this quarter, broken down across the areas, the like-for-like portfolio, the projects and project development and transactions. Starting with the revenues, the rental income. We have decreased revenues from the existing portfolio and also in project. And I said, one reason is high add-ons last year, but also higher vacancies this year. For example, is the Mölnlycke Health Care that moved out last summer that has had a negative impact. But then encouraging that we already have leased out part of those areas, which we press released earlier this week. The growth is primarily driven by transactions, and that's the MIMO property bundle that is the main contributor.

As Johanna mentioned, we are signing new leases at attractive levels in that property and that grounds well for future earnings and major tenants such as Keppel, Siemens Mölnlycke. Overall, revenue decreased by 1% in the quarter, but increased 5% for the full year. On the middle line, we had the property costs, and they decreased with SEK 8 million during the quarter compared to the corresponding quarter 2024. And that's mainly within the existing portfolio and explained by several items such as lower credit losses, lower utility costs and maintenance costs, but also recovered property tax during the quarter. And overall, if you look at the net operating income, it decreases by 2%, both in like-for-like and projects, but transaction contributes with 5% growth and that results in a total growth in the quarter of 1% and 5% in the full year.

During the quarter, we carried out internal valuation as we do every quarter for the full portfolio. In Q4, we have also done external valuation of approximately 60% of the total value, and our internal valuations exceed the external valuations by 9.4%, and that was 2024, 1.7%. The yield that we applied in our valuation in average was 5.9% now in Q4. It was 5.8% in Q3, but the difference there is basically the new property that goes in with a higher yield than the average and the rest is on the same level. During the quarter, we invested SEK 118 million in existing properties. We had the SEK 167 million for the acquisition. And then we have unrealized value changes of SEK 107 million, and that's 0.4% of the value. And virtually, the entire value change there is driven by increased cash flow, ending up at the property value of SEK 30 billion.

Moving to our financing, which have continued to strengthen this year. We feel strong support from the banks that want to grow with us, and we also see continued strong capital market. And during the fourth quarter, we continue to take advantage of the strong capital market by, for example, issued new MTN bond of SEK 300 million on a 5-year period on the levels, 145 basis points. And on the banking side, we have been very active with refinancing of loans, SEK 2.4 billion during the quarter. And as a result of this, the average interest rate decreased by 8 points during the quarter, at the same time as our average debt maturity increased from 2.2% to 2.7% during the quarter.

As shown in the lower chart on the right-hand side, we have now 22% of credits that mature within 12 months. And if we go back to Q3 report, that figure was 35%. So quite a good movement there. On that basis, we increased the debt slightly during the quarter. Interest rate maturity, we didn't do any new [ debits ] during the quarter, but we have SEK 500 million that matured. And our average interest fixing period is now 2.8 compared to 3 last quarter. Overall, average interest rate 3.45%, I said, 8 basis points lower than September 30 and 23% -- 23 basis points lower than year-end last year. The decrease of the interest rate is 45% explained by lower credit margins and 55% lower stable on the unhedged loan volume.

In summary, we have strengthened the financial position during the year significantly and the growth in earnings and larger liquidity buffer and rating upgrade makes us much better prepared to actively manage the capital we have. And we see ahead of us that we will be still active and market in the transaction market, both in acquisitions and divestments.

Platzer have a long track record of growth since its listing in 2013 that this chart shows. On average, we have increased the income from property management per share by 13% over the period. And over the same period, the dividends per share has grown by an average of 12%. And also not included here, but if we look at the net asset value per share, it has increased by 15% during this period. And we continue to create value for the shareholders throughout 3 pillars of property management, projects and transactions.

The Platzer share. During the quarter, the Board of Directors decided to exercise the mandate from the AGM to repurchase shares for up to SEK 100 million. And that's the aim to increase the shareholder value, but also enabling delivery under incentive programs. To date, at year-end, the share purchase amount was approximately SEK 40 million out of the mandate of SEK 100 million. This year, the Board proposes the AGM to make a dividend of SEK 2.20 per share and that you can compare with the dividend of last year on SEK 2.10 per share.

Sustainability. Our sustainability transition continues and is fully integrated in business and operations. And we are very pleased to see that once again that we have a very strong improvement in the energy efficiency, 4% in 2025, which is higher than our own internal goal of 3%. And if we look at going back to 2013, again, we see that we have a total 40% lower energy usage. And that's, of course, benefits both the environment, but also the clients and also our bottom line.

In addition to focus on energy, we are now placing strong emphasis on reducing our climate emissions, which largely come from our refurbishment projects, the fit-outs. Here, we apply our own concept in Swedish [indiscernible] under which we calculate manage and minimize the climate impact. Sustainable financing, 73%, which is an increase by 6 percentage points compared with 2024.

So back to you, Johanna.

Thank you, Jakob. So I would like to summarize how we focus on our growth going forward. Our absolute highest priority and to be continued is our letting, our renegotiations, handling our vacancies together with our property team. This is where we deliver results and cash flow here and now. Together with our DNA and history of good cost control, this gives a very efficient property management that Jakob highlighted in the former slides. At the same time, we continue to actively work on our portfolio rotation and strategic transactions. That means that we are both buyers and sellers in the market with a clear objective to enhance the quality of our portfolio and to create long-term value.

When it comes to project, which is our third base where we grow our business, Industrial & Logistics remains to be prioritized growth area for us. It's relatively short construction lead times and limited risk in terms of letting in these projects. And we generate a quick cash flow and a really strong value growth, leveraging our key driver for us. This is also a very strong market in Gothenburg with a low vacancy rate and a good demand.

Energy efficiency project, as Jakob mentioned, is also important for us and helps us our ability to manage and control cost efficiency, for instance. Together, of course, our willingness to act in a sustainable way. At the same time, we are also laying the groundwork for the next phase of the company's growth, advancing, for instance, the detailed regulation plans, we are securing project opportunities for gradual and profitable growth in the office segment as the market will normalize when the economic growth in the country and in the region as such improves. And these are the growth areas that we are focused on for now.

And with that, I would like to thank you for your attention, and we -- here with -- open up for questions. Thank you.

Thank you.

[Foreign Language]

[Foreign Language]

Welcome To Platzer Q3 2025 report presentation. [Operator Instructions]

Now I will hand the conference over to the speakers. CEO, Johanna Hult Rentsch; and CFO, Jakob Nilsson. Please go ahead.

To begin with, I would like to welcome everyone who's tuning in and extend an especially warm welcome to you, Jakob, our new CFO.

Thank you.

And we will be co-presenting this presentation together. So my name is Johanna Hult Rentsch, and we will take you through this presentation. We are in a fairly similar market and economic climate as we were in the previous quarter. Over the summer, with the tariff agreement has been finalized, providing greater predictability towards the Gothenburg export-intensive business community.

My assessment is that when the economic turnaround does come, it will also be reflected in the rental market, albeit with some delay, of course. In this environment, we have improved our property management result by 30% since the start of the year, and this outcome remains steady.

Our Industry and Logistics segment continued to be the driver with the strong demand. This week, we have signed a major lease agreement for just about 10,000 square meter at Arendal Port View, our future development of Port of Gothenburg. We are continuing to grow in the Industry and Logistics segment, which is now approaching the size of our office segment in terms of square meters. This segment drives the portfolio and diversifies us and complements us to the slower pace of the office market.

We have accelerated the pace of our transactions and completed several deals so far this year, which gives us a great leverage and flexibility for future investments. We have acted both sellers and buyers, all part of actively rotating our assets and managing our portfolio.

We continue to strengthen our financial situation, and in terms of flexibility. And last quarter, we had a positive net letting and announced that we would be receiving the lease termination from Nordea. And that has now happened, and Nordea has given formal notice. This is the major impact of the quarter's negative net letting, SEK 30 million out of the SEK 41 million.

Our work with our customers is a major focus in the company right now. And our team is working really hard and have so far this year generated a 7% increase in rental income and a 6% increase in operating income. Our new asset addition to our portfolio, MIMO, has made a significant contribution to this result.

So here we present the summary of the third quarter in numbers. In this single quarter, income from property management was 9%, this development is explained by an increase of operating surplus, mainly from MIMO, and we have also improved the financial net. The comparable portfolio is also contributing positively.

What differentiates quarter 3 from quarter 2 is that the rental income growth declines due to Mölnlycke Health Care lease termination on the 1st of July, as well as the fact as the comparison period in 2024 had a rental income from the English school, which we sold during the beginning of this year. And Jakob will dive a little bit deeper into these figures shortly. We have also, as I mentioned, after the end of this period, made this letting of 10,400 square meters in Arendal Port View and that will be added to the net letting of Q4.

Looking into the net letting and elaborate a little bit further on these figures, as I know that you would be interested in this topic. The net letting of minus SEK 41 million is built up in this way. So SEK 30 million is the Nordea lease termination. And if we look then into what the rest contains, you can see that SEK 10 million is renegotiations with tenants that remain in our portfolio. And it also includes garage, construction site establishment, et cetera. SEK 2 million is bankruptcy, it's actually a restaurant in one of our joint ventures. And it's SEK 4 million that is vacating our portfolio, tenants that will actually leave us and SEK 5 million is new lettings and new leases that we have signed.

Q3 is a very short quarter. It's only 7 weeks of actual work. And on average, the quarter usually accounts for just about half the office lettings compared with other quarters when I look at the historical figures in the entire Gothenburg office market. So we are, of course, pleased to have been able to announce another excellent letting in the Industry and Logistics segment after the end of this quarter.

So what has happened? What are the major events in this quarter then? As mentioned, Nordea has terminated the lease, but we have also extended parts of the current lease agreement, and they will vacate the premises only in March -- end of March 2027. The net effect for us is positive, about SEK 4 million.

And we've also taken the opportunity when Nordea will vacate to transform this building and entire block. And we have already started, and we have opened a new restaurant adding to the service to the tenants. And the building will also later connect to Skanska's new office block and open up internally towards the station entrance of Gothenburg.

MIMO in Mölndal has now reached 88% occupancy rate after several new lettings during the summer. It was 80% when we took over the property here last December. We have also successfully concluded and secured a large renegotiation with Folktandvården at Medicinareberget. It's about 15,500 square meter and extending the agreement and securing income for another 6 years with the same rental level. We have given the tenant rental discount of about SEK 7 million, but that's accrued over the rental period. Hence, given to the site agreement, there will be a negative impact on the rental development for renegotiations due to this rental discount. No CapEx or tenant fit outs will be due.

If we then look into our customer structure and our 10 largest customers, we have a very well-diversified rental structure in terms of both geographical distribution and the mix between offices and industrial warehouse tenants. The 10 largest tenants account for 35% of the total contract value. And as you can see here, the majority are the customers in the public sector, municipalities and authorities and so on as well as the industrial and logistics and one hotel group.

The average remaining contract period was 4 years. And -- what we also can comment here is that we have an occupancy rate that is 91.5% in the portfolio and the retention rate that we measure continuously on 83%.

Our office portfolio and industrial and logistics portfolio are approximately the parity in terms of area right now. And we can also see here that we have really nice building opportunities going forward.

I will dive in a little bit more into the industrial and logistics. The activity in this segment remains high. Demand is strong and vacancies are low. It's about 4%. And thanks to the limited supply of zoned land and the absence of speculative developments, Gothenburg, as a logistic position with its port railway and airport makes Gothenburg the Sweden leading logistics hub. And our portfolio partly situated in the actual port enjoys a stable rent development and low vacancy rates. And this segment is prioritized for our continued growth.

And we have been very active in this sector in the recent month, and we intend to remain this momentum going forward. Here are a few examples. We have acquired an industrial property in Tuve, which contributes with the strong cash flow and future development opportunities. We have also initiated a new project with Speed Group who is the main tenant in Sörred Logistikpark, our joint venture with Catena. We have divested another project that was completed in Sörred Logistikpark. And -- as announced this week, we secured this lease with a major industrial player. We will kick up off this new development in Arendal Port View.

In total, the whole development is 55,000 square meters. This specifically is 10,400 square meters. We have really highly set climate targets here and very ambitious goal to reduce our footprint within Scope 3 of about 200 kilos CO2 equivalents per square meter.

Here, we see where our development of Port View is located. And we can also see the location of our portfolio on this photo. Arendal and Torslanda, that's the Nordic region's most attractive locations for industry and logistics. And I think this picture actually explains that. And Stena Line will relocate its ferry operation in the area in 2030, and we are pursuing continued development here. And in this first phase, there is an opportunity to develop an additional 80,000 square meters of modern logistics space in the proximity of this land.

The port then. The Port of Gothenburg actually carries 1/3 of Sweden total export and more than half of the country's container traffic passes through Gothenburg's harbor. It is the only transatlantic port, and it's growing in importance, and our property is located in this unique area in Sweden's primary logistic hub.

A little bit about the office market. The transaction volumes in the Swedish property market as such has increased significantly during the first 3 quarters of the year. According to recent analysis from [ SFA ], the total transaction volume is up 27% in Sweden. The recovery was particularly noticeable in the third quarter with the volume, which is the strongest quarter since 2021.

The recovery is broad, but not really evenly distributed. Stockholm country is continuing to dominate. Greater Gothenburg area is catching up and shows the strongest recovery since 2020, and now represents about 18% of the transaction volume. However, no major office property transactions were carried out in Gothenburg during the third quarter. The transactions that has been taking place at the end of '24 and beginning of this year have confirmed the market assessed yield requirements.

My impression is that there are more prospects to evaluate at the moment. There are plenty of available capital in the system and considering the spreads, transactions in the office segment should pick up also in Gothenburg going forward.

Prime rental remained stable. Office vacancy in Gothenburg stands around 13%, mainly due to large volumes on new production of offices added a couple of years ago, and I will return to this shortly. The proportion of internal relocations -- in other words, agreements where tenants move within the existing landlords portfolio is higher than last year, almost 30% up, which is a signal that competition for tenants has intensified. It is an advantage for us as a major landlord in Gothenburg with local knowledge to our customers.

The trend of tenant demand in location with good transport links and high standard that continues. And we know that there is a willingness to pay high rentals for qualities amenities. The take-up in the Central Gothenburg office rental market has decreased over the last 3 years, but remains at a relatively high level. From the peak, it was around 130,000 square meters in '22. And take-up is expected to reach just under 100,000 square meters by end of this year according to Citymark.

The average rental trend for the center part of Gothenburg shows that rents have increased by around 4% per year since 2020 and rental levels have remained stable over the last year, which is also the primary outlook for 2025. Thereafter, rents expected to rise about 1% per year during '26 and '27. In '28, the improved vacancy rate should contribute to a further small increase in rents according to Citymark's.

And if we look at the increase of vacancy rates in Gothenburg, it is primarily due to additional new offices that has been brought into the market rather than the pronounced trend of tenants reducing the space requirements. The media letting the -- in Gothenburg is currently 300 square meter per agreement, which means that the effect of space reduction is not as pronounced as in Stockholm as each agreement is smaller and both rental levels and the potential of cost savings are not that high.

Over the past 5 years, the stock of offices in Central Gothenburg has grown from just about 1.8 million square meters to about 2 million square meters corresponding to an average annual growth rate at about just over 2%. As you can see here, such large addition have been difficult to absorb. I would say that this 1.5% is the normal economic -- during normal economic conditions, this is what the market can absorb. This is what it has been looking like the last 5 years. And going forward, on average, the addition should be around 1% up to 2027. And after that, no new construction have been initiated. And for anything else to be completed after 2028, construction needs to begin now.

So with this conclusion, we will see that the vacancy rates most likely will go down. Standing out in Gothenburg is compared to other cities, is that the vacancy rate in the central business district is one of the highest in the market despite location and connectivity. It's approximately 15% and this is primarily due to -- this is primarily due to infrastructure investments, which have caused traffic issues and prompted many to relocate from areas such as Lilla Bommen and Central Station District.

Example of such projects include Bridgework, the West Link Railway project and district heating upgrades. Market activity has been concentrated in the -- to the central parts of the city with about 60% of all new letting taking place in CBD during this year. So my assessment is, therefore, that we will see continued competition for office tenants for some time before the situation turns around. However, I do believe that the change will come.

And let us look at some of the fundamentals behind the future expansive drivers of our region. Since 2009, the economic -- the economy in Gothenburg region has grown by 67% in real terms. This is almost twice as strong as the Swedish average and more than 3x as strong as [ your area ] average. It's almost on par with China.

In terms of percentage, Gothenburg has grown more than the capital over the last 10 years. We continue to see population growth, albeit in a low rate. Over the last 12 months, the number of inhabitants has increased by 0.9%, that is higher than Stockholm of 0.7% and Malmö at almost 0.1%. So the population is also younger with the highest population proportion in the average group or age group of 20 to 39 years. That's also a very predictive.

Gothenburg is cementing its position as Swedish innovation engine. The R&D intensity in the Gothenburg region is more than twice as high as in Stockholm and the rest of Sweden. And Gothenburg also stands out internationally with the world's 12th highest density of inventors and researchers. And this should be put into the context that Sweden is ranked #2 in the Global Innovation Index, which is extraordinary for such a small country as we are.

Another driver is the Port of Gothenburg, 1/3 of Sweden total exports and more than half of the country's container traffic passes through this port. And the container volumes continue to rise. The seabed dredging is ongoing, and that is to accommodate the world's largest fleet of vessels as well as more environmental friendly, such as the harbor expands its electrification and charging points to strengthen the city's role as logistics hub long term.

So with these strengths, together with Saab that is expanding, they are, for instance, opening a new facility in Mölnlycke that will create 500 new jobs. And -- these are examples of fundamentals that underpin the long-term growth of our region.

So with those words, I will hand over to you, Jakob, who will take us from this helicopter view and into a little bit more detail about our specific growth of Platzer.

Thank you, Johanna, and good morning, everyone, listening in. It's a pleasure to be here presenting my first quarterly report as CFO at Platzer.

So let's dig into the numbers. The company continues to deliver solid growth in the quarter. If we look at the income from property management, the growth in this quarter is 9% compared to the same quarter last year. And if we compare to the previous quarter, Q2 this year, we had a growth of 16%. And the main reason for the lower growth this quarter compared to Q2 is that our tenant Mölnlycke Health Care vacated its premises on July 1, which we have communicated earlier.

In addition to that, last year, we had rental income from the English school property that we sold in Q1 this year. Despite this, we are still showing good growth in both rental income and net operating income, and that's mainly driven by 2 factors.

One is a positive performance in the like-for-like portfolio and contributions from, in particular, the acquisition of the MIMO property in Mölndal. And then, of course, the financial net also plays an important role in the income from property management. And in the third quarter, our financial net was SEK 10 million better than the same quarter last year. And this is a result of a focused work with the finance function, leading to both lower average interest rate as lower credit margins and also, of course, supported by declining market rates.

All in all, this translates into an income from property management of SEK 198 million. Corresponding as said, to 9% growth compared to the same quarter last year. For the first 9 months of this year, we have a growth in income from property management of 13%, 1-3.

Moving from cash flow to property valuation. Our property values are remaining stable and just under SEK 30 billion. We reported a small unrealized value change of SEK 20 million, and that's driven by cash flow changes. The yield remains the same as last quarter 5.1%.

As we said before, the economic downturn continues. And you can see it's also reflected in the investment volumes, which is low, SEK 60 million in the quarter, and that's basically driven by that we have not initiated any major projects and also tenant fit-outs that progressing on a lower pace.

And as Johanna has said, and as you know, the company has worked hard to adjust its capital structure following the acquisition of MIMO in Mölndal that was done in the end of last year. The transaction activity was high during the first half of the year.

So if we look at the net investments so far this year, in the first 9 months, net investment amounts to minus SEK 733 million. And the transaction this quarter is the only transaction was that we completed the previously communicated sale of a logistic property in our JV with Catena. And that's an underlying property value of SEK 385 million.

If we look into next quarter, quarter 4, we will close the acquisition of the industrial property in Tuve, which we acquired in Q2, and that's an investment of SEK 174 million. The combination of the strong underlying earnings, the stable property values and the divestments that has been carried out during the year has strengthened the credit-related KPIs.

So the interest coverage ratio has improved to 2.5% in the quarter. Net debt to EBITDA is at the quarter, 10.9 and rolling 12, 10.8. And the loan-to-value ratio calculated for the total assets is 47%. And these are a level of on the LTV ratio that we are comfortable with and in line where we want to be.

To sum up, we continue to show solid growth, albeit a slightly lower pace than previous quarters. We have stable property values and strong improving financial KPIs. Finally, also just mentioning the bottom line and the profit after tax for this quarter is SEK 210 million, and the result is impacted by value changes on derivatives of SEK 72 million plus.

So let's take a closer look at the key drivers behind our performance this quarter, broken down across the like-for-like portfolio, the project portfolio and the transactions. If we start with the revenues and rental income on the top, we continue to see growth in the existing portfolio, but the largest impact is from transactions where MIMO is the main driver.

The decline in -- the decline in revenues within projects, that's mainly reflected by Mölnlycke Health Care's move-out on July 1. Overall, revenue is up 4% in the quarter compared to 6% the previous quarter. And year-to-date, we have an increase of 7%.

If we look at the property costs in the middle, these are higher compared to the same quarter last year. However, only SEK 1 million higher from the like-for-like portfolio. The remainder is mainly from transactions, reflecting the larger property portfolio. And in total, the net operating income in the like-for-like portfolio increased -- increases the NOI by 1%. Last quarter, it was an increase by 2%.

If you look at projects and transactions combined, they also add 1% in growth, resulting in a total 2% growth for the quarter. If we look at the year-to-date figure, the growth is 6% in NOI.

Moving on to our financing and credit KPIs. As said, they continue to strengthen over the year. We experienced a strong support and good collaboration with our banks, and we also see good access to the capital markets. And during the quarter, we took advantage of the strong capital market by being active issuers on the bond market. We issued 2 new MTN bonds, SEK 700 million plus SEK 200 million Swedish. And in addition to that, through [indiscernible] Financing, we raised another SEK 195 million, and we think all of those was done on an attractive level.

So the total of those issuings, a little bit above SEK 1 billion. You can say around SEK 600 million of those was refinancings. On the bank side, we repaid a bank loan of SEK 330 million, which was refinanced then by lower margins in the capital market. And we also, during the quarter, reduced our RCF volumes. So overall, this gave that the net debt decreased by around SEK 200 million in the quarter.

And if you look at the capital duration, virtually no change since last quarter. It's 2.2 now. It was 2.3 last quarter. And if we look at how that is spread, it's the graph on the down left side. And you can see that there's 35% that matures during the next 12-month period. To be noted there is that 5% of those basically certificates. And -- but given the strong credit market, our solid relations with the banks and also the flexibility we have built in our financing is -- we don't see that as a concern for us, and we have dialogues ongoing with the banks.

On the interest rate side, we entered into a new swap this quarter of SEK 250 million, and our average duration remains at 3 years. In total, if you look at the average interest rate, it's now 3 basis points lower than the end of June and 15% lower than at the year-end, basically driven by lower market rates or STIBOR.

As mentioned, Platzer has significantly strengthened its financial position this year, combined with the larger liquidity buffer and the recent credit rating upgrade, this gives us a much stronger position to deploy the capital actively and we hope to be even more active in the transaction market going forward.

Let's move from financing to sustainability. Just to highlight a few areas where we are working continuously in the business. First, we continue to work actively with the energy efficiency in the portfolio. And during the first 3 quarters, we reduced the energy consumption in like-for-like portfolio with 4% compared to last year, and the forecast to reach our target of 70 kilowatt hours per square meters looks promising. So good performance first 9 months.

We have also implemented a new interior concept for tenant fit-outs. And if we look at reference projects, we can see by that, that we can reduce the climate impact up to 40%. And we calculate the climate impact on all our fit-out projects going forward.

And finally, the green and sustainable financing, we are now up to a level of 73%, which is an increase of 12% during the past 12 months. And we hope to, and I think we will increase that even further going forward. Thank you.

Thank you for that, Jakob. So what is our focus going forward? Of course, our core business, our customers and focus on our vacancies remains one of our greatest potential for cash flow growth and earnings. And we also continue to develop our industrial and logistics projects, which is quickly generating operating income and leverage and helping us to grow our portfolio.

In today's call, I have provided you with several examples of how we do this and how we create this leverage and what we are planning going forward. During the year so far, we have also been very active in the transaction market, and we will continue with these strategic transactions on both purchases and sales to reposition our portfolio. So we have started a new development with the Speed Group, and we have divested another project in Sörred Logistikpark, and we have also started this project here shortly now in Port View Arendal.

And a piece of another good news is that we are -- in September, we recognized with this award Listed Company of the Year by Kanton. This is a testament to the expertise and commitment within the company and all employees who contribute every day to drive us forward as well as to improve our operational development and our success.

And with this, I would like to thank my team and also thank you all for listening in, and we are open for questions.

[Operator Instructions] There are no more questions at this time. So I hand the conference back to the speakers for any written questions.

We don't have any written questions coming in to us at the moment, and we would like to thank you for listening in. And when you come to the end of this day, I hope you will have a good weekend. Thank you.

Thank you.

Welcome to Platzer Q2 2025 Report Presentation. [Operator Instructions]. Now I will hand the conference over to the speakers, CEO, Johanna Hult Rentsch; and Interim CFO, Ulrika Danielsson. Please go ahead.

Welcome to Platzer's Q2 report. My name is Johanna Hult Rentsch. And with me, I've got my acting CFO, Ulrika Danielsson.

Let us start. At the beginning of this year, the market was characterized by a certain optimism. As the economic turnaround was -- did not materialize, expectation has been adjusted downwards. Despite this, we have delivered another quarter with strong management results with an increase of 16% compared to Q2 2024 and for the entire period.

We see how well our 2 business segments complement each other in this quarter. In a highly knowledge-based and industrial city like Gothenburg, this makes sense. The office market continues to be affected by the prolonged recession and tougher competition around tenants, especially then in our Office segments, while this requires us to be very attentive to our customers.

The Industrial & Logistics segment, however, is developing positively with a high activity in several new lease agreements as well as strategic transaction with both acquisition and the investment. We also contribute significantly to a positive net letting in the Industrial & Logistics segment.

Going back to the Office segment alone. We have a negative net leasing this quarter, which is mainly explained by bankruptcy and the corporate acquisition. And adjusted for these 2, the net letting would actually have been close to 0. Overall, the net letting is positive, plus SEK 15 million.

As a result of our robust earnings and the successful completion of recent transactions, our financial position is stronger than it has been in some time, affording as increased capacity or pursuing new opportunities going forward.

Here, we can see a summary of the quarter in numbers. These nice and good numbers is thanks to my hardworking colleagues, and that's why we have achieved these good results.

We have maintained a strong momentum throughout the spring. And by leveraging our 3 core drivers, earnings from management, projects and transactions, we are now successfully transforming the portfolio and generating sustainable growth for the future. By the announced letting to Speed Group, we started a new project in Sörred Logistics Park.

We have also sold a completed project in the same Sörred Logistics Park. This is a joint venture with Catena. And we have also sold a parking garage in Sodra Anggarden. We have also acquired an industrial and logistic property in Tuve. I will come back to this later and -- but it makes a very strong contribution to our earnings and offers future development opportunities.

Also to mention is that we have recruited Anders Woodall as our new Business Area Manager for our Office segment, and he's starting in December. I'm looking forward to, together with Anders and the rest of the team to make -- to take the next step for Platzer.

So then the market. The global market and the Swedish economies are, as you all know, affected by the geopolitical unrest and uncertainty and that dampens investments and consumption on the whole. IMF and the National Institute of Economic Research of Sweden have revised growth forecast downwards. The Swedish economy is expected to grow by 0.9% in 2025.

We monitor the automotive industry very closely. Volvo Cars announced a saving package in May and they have also issued layoff notices to about 2,000 employees, including consultants. If the layoffs are implemented, staff levels will return close to those ones in '21. Our direct exposure in terms of lease agreements to Volvo Cars and Polestar that amounts to 4% of our annual contract value.

But there are also some bright spots. Recently, Volvo and Daimler launched a new software development company to be established in Gothenburg. They call Coretura. Major investments of several hundred million Swedish krona is made now in the truck industry, which is very positively.

Gothenburg is Sweden's leading center of research and development, and the companies are currently investing close to SEK 60 billion and amounts to 35% of the country's total R&D resources. That's a clear shift from Stockholm to Gothenburg. And there is considerable growth momentum in our region in terms of defense, such as SAAB.

Also to mention is the port of Gothenburg, the largest port in Scandinavia, facilitates the transshipment of approximately 14 million tonnes of cargo annually. And the harbor continues to demonstrate robust growth also in this quarter. Ongoing harbor dredging are aimed to accommodate larger and more energy-efficient vessels, and therefore, enhancing the city's strategic position as a premier logistics hub.

And Gothenburg Industry & Logistics has maintained a good activity. Due to limited access of zoned land and the absence of speculative construction, the city's logistics position with its port, railway and airport access makes Gothenburg Swedish foremost logistics hub. Our portfolio is located at the epicenter of this logistic hub which enjoys stable rentals and the low vacancy. So this segment is prioritized for our continued growth.

To mention some of our letting and project activity. Letting to Speed Group of 30,000 square meters, we have already announced, and we held the groundbreaking ceremony for this project very recently. This is a joint venture with Catena, as mentioned before.

We have also let out to Smart High Tech, that's a growing company rooted from Chalmers University which has made impressive progress in a very short time. They develop and produce graphene-based thermal conductors, world-leading technology for heat transfer. And they can now be produced at a larger scale in our premises. We have also let to Marine Supplies in Arendal.

Platzer and Catena have sold this property to Savills IM. And we sold this to -- for SEK 385 million. The handover actually took place this Tuesday, the 1st of July, and the dividends of SEK 80 million has, during this week, being paid out to us as a JV partner. That's a very great deal.

We have also acquired industrial property at Hisingen. I'm pleased to announce that this opportunity is a very strategic position for us, and it's a very interesting location. It's a stable, high-yielding property with a solid cash flow, and it also offers existing development possibilities of about 15,000 square meters of lettable area during the current zoning plan. And in the longer term, there are further development opportunities here. This acquisition shows our will to be long term and grow within this segment.

So going over to the Office segment and how the Gothenburg market works. Prime rents remained stable with the strongest demand for new and centrally located space. Companies are investing in bringing the teams back to the office and demand for modern premises in good location, close to public transportation is good.

But the office vacancy has increased by 2% on an annual basis according to JLL, and it's now about 13%. This increase is mainly due to new spaces being added in terms of new office construction rather than decreased demand.

Annually, the take-up is slightly exceeds the 5-year average at approximately 145,000 square meters. It indicates a solid market activity, although the net observation can't really match up exactly to the new production and that's why the vacancy rate is increased by 2%. But the competition amongst tenants are -- it's quite hard.

If we look at these pictures here, it's Citymark's graphs. They show whatever some low vacancies, but the trend is the same. What stands out in Gothenburg is that the increase in vacancy is mainly driven by the new office production. Over the next 2 years, significantly fewer new development projects will be completed. It will be 0.4% in this year, 0.8% in 2026 and 1.7% in 2027. After that, we actually don't really know what will be completed as very few new office project has been started.

My analysis is, therefore, that we will have some continued period of fierce competition for tenants before the turnaround in terms of vacancies.

What also differs in Gothenburg compared to some other cities is the -- where the vacancy is high. And actually here in CBD, it's the highest. And this is due to many years of large infrastructure investments, causing traffic chaos and leading to avoid these areas. Here, we can see Lilla Bommen and the Central Station area. There has been a bridge built, tunnels and some other large infrastructure piping.

So the market activity and letting is also concentrated to the central parts of the city. According to JLL last review, they looked through the last year's letting and about 80% of what is let are actually activity in newly built premises or in Central Gothenburg.

So when these infrastructure works are completed and the access for the public will improve dramatically, at the end of 2026, I believe that the tenant interest in Lilla Bommen will increase as well.

This picture shows the prime rent development over time within Office segment, and it's based on JLL's analysis. It compares Stockholm, Gothenburg and Malmo. The rent levels in Stockholm is more than twice as high as in Gothenburg. The trend then to reduce space is, of course, less prominent in Malmo and Gothenburg partly because the leases are generally much larger in Stockholm.

A typical large lease is about 20,000 square meters, while a large lease in Gothenburg is 5,000 square meters. It simply doesn't have so much impact to save 20% of space on the average lease of 500 square meters, for instance, with a lower rental level.

But Stockholm is a big city with large companies, but it's also a volatile market, as we can see here. Gothenburg is a more stable market with a more modest rent development over time, but steady and reliable long term in terms of growth.

Here, I can consider and think a little bit about what the rental potential actually is for Gothenburg. Stockholm has shown a high growth in terms of the last 1 to 3 years, and Gothenburg has demonstrated better long-term stability over 5 to 7 years, as you can see in the chart on the upper right corner.

So our major lettings in the quarter in the Office segment. We've maintained a rate of 87% in terms of tenant that actually stayed and could leave us, which is quite good. The renegotiations total value is SEK 54 million. And I think this demonstrates our ability to meet our customers' changing needs. But however, we are not always successful. And earlier this spring in Nordea, the bank at Nordea announced its intention to -- at the beginning of 2027, vacate its 7,400 square meter premises in Lilla Bommen.

We have yet not received any termination notice. So you can't -- it doesn't affect this quarter's net letting. And most likely, we will receive such in beginning of next year. The annual rent is about SEK 30 million. But the lease termination also means that we can approach our spaces in tenant, which is in the future being joined by Skanska's new project.

As part of these efforts, we have already contracted new restaurant in the house, and they will open here this autumn. And we are also continuing our district development in Gamlestaden and have signed several new contracts of about 2,300 square meters in this quarter.

Now on to the sustainability, which remains a passion at Platzer. Nasdaq Green Equity designation has been renewed for the fourth year in terms of consecutive years. We have improved 6% energy performance, and we have a good chance to achieve the efficiency goal for 2025 of 70 kilowatts per hour per square meter [indiscernible]. That's really a good prospect for achieving this. We have also opened Scandinavia's first fully electrical charging station at Garda [indiscernible].

Having said this, I would like to hand over to Ulrika. This will be our last call, Ulrika. And as you will soon be leaving your Interim CFO role. Next time, our new CFO, Jakob Nilsson, will join me here, and he will take a seat in Platzer's Board. So I want to thank you for the very well done job so far.

So I hand over to you.

Thank you, Johanna. Platzer delivers growth in profit from property management of 16% in the second quarter as well as in the first. There are lot of similarities between the 2 quarters, but there are also some small differences, and I will come back to that.

The growth in NOI is good and is driven by stable development in like-for-like as well as contributions from completed developments and acquisitions made.

Revenue growth is lower compared to the first quarter, but this is more than offset by good cost control, which is why the growth rate in the like-for-like is improving further. Central administration has been [indiscernible] with roughly SEK 2 million in nonrecurring costs linked to bonuses and the new LTE program adopted by the AGM in March this year.

Net financial items in the second quarter are lower than in the corresponding quarter 2024. Despite the fact that the capitalized interest rate is SEK 6 million lower, the debt volume is higher and the interest rate duration is longer. And this is explained by an average interest rate that is 50 basis points lower, driven by falling market interest rates in the wake of the Riksbank's cuts, lower credit margins and interest rate derivatives entered into.

All in all, this results in a profit from property management of SEK 204 million, equal to a growth of 16% compared with the corresponding quarter 2024.

If we then move from cash flow to valuation. Property values are stable and moving slightly upwards net, but the value drivers, cash flow and yield pulls in different directions. Cash flow resulted in a net negative change in value of roughly SEK 74 million, driven by, among other things, Nordea's upcoming termination, while yield reductions on some of our logistics properties resulted in an appreciation of SEK 130 million. And that means that we have a net positive unrealized change in value of SEK 39 million in the second quarter.

The recession is taking hold in a number of ways, including our investment volume, where no major office projects have been started and tenant adoptions are at a low pace. As you already know, the company has been working with the capital structure after the intake of MIMO at the end of last year. The pace has been high, as Johanna mentioned before. The quarter sales resulted in a reported realized change in value of minus SEK 72 million, but then it should be taken into account that in that figure, we report the deduction of deferred tax that has taken place in the transaction.

And that tax is met by a deferred tax income lower -- further down in the P&L of SEK 67 million. So the total net impact from the selling -- of selling assets is therefore SEK 5 million minus.

Market interest rates have continued to fall, especially in the second half of June, which has resulted in a negative change in the value of derivatives in the second quarter. After deducting tax, the result of the last line is SEK 6 million minus.

Strong underlying earnings in combination with stable property values and completed divestments results in strengthened credit-related KPIs. Our net debt-to-EBITDA continues to decline and amounts to 10.8 based on earnings for the half year. The ICR is strengthened to 2.4 and the LTV decreases to 48%.

So in summary, another good quarter and a high pace of businesses.

Before I go any further, I would like to quickly draw your attention to the fact that we have changed historical figures on our share values in associated companies and joint ventures. A review was carried out during the second quarter to ensure the same accounting and valuation principles for all holdings.

The review has resulted in the share value being revised upwards by SEK 216 million, of which SEK 24 million relates to 2024 and the remaining SEK 192 million to previous periods which is why the opening balance is corrected. And none of this change has impacted income from property management. It is a pure question regarding valuation and accounting principles.

I mentioned at the beginning that there are some nuances compared to our delivery in the first quarter, and it shows in this picture. Certainly, we have a better NOI growth in the like-for-like portfolio. But the increase in revenue is lower and is explained by the fact that the negative net lettings we have had in the existing portfolio starting to take hold, where vacancies are increasing and supplements are decreasing. However, it is offset by lower property costs, driven mainly by a mild quarter, implemented energy investments, but also lower maintenance where we avoided water leaks that we had last year.

Overall, NOI increased by 2.4% in the like-for-like compared with 1.7% in the first quarter. The projects but -- above all transactions and more specifically, MIMO, have contributed with new NOI and account for a large part of the growth which totaled 7% in the second quarter.

In addition to a high pace in the business, we have also had high pace on the funding side. We're experiencing strong support from our banks that want to grow with us as well as the capital market. In the second quarter, we have been at full speed and renegotiated and extended credits for a total of SEK 3 billion.

We raised new loans of SEK 1.4 billion and at the same time, we canceled or had maturities of the corresponding volume. We tapped a minor issue on our longest MTN that was due in March 2029. We issued that at 145 basis points, which is almost at the same level as our issue in February and this is strong because the market has split up given a messy world with war and custom chaos.

The above results in a lower average credit margin, greater flexibility and extended tied up capital from 2 years up to 2.3. We have not done much on the interest rate side more than we did when we curved it in early April, and that means that the ratio has ticked down slightly from 3.1 to 3. Overall, our average interest rate is now 11 basis points lower compared to the March -- to the end of March this year, which is explained by lower STIBOR, but also lower credit margins.

So after hard work on many levels, we can conclude that Platzer is in a significantly better financial condition than it has been for a very long time.

And with that, I want to say thank you for me, thanks, Johanna and the whole gang at Platzer. But over to you, Johanna now, the future is yours.

Thank you, Ulrika. So going forward, our focus going forward is mainly focused on these different points. We are focusing on letting our vacancies. As you can see in our earnings, there are significant potential here. Today, approximately SEK 210 million is the potential in our vacancies.

If we succeed in letting in this area, we will see a very positive effect. I would say that that's our greatest potential in terms of earnings going forward.

We will continue to make transactions and to develop our industrial and logistics projects, which quickly generate net operating income and provides leverage for our portfolio. Together with refurbishment projects, with also reduced vacancies, of course; and energy efficiency projects, we are moving ahead. If we are looking forward in time, when the market has been a little bit more positive, I think we can also look at larger projects again.

This is Arendal. It's right by the harbor. Here, we have 55,000 square meters of projects ready to be launched and started. We also have Gamlestaden, one of our ongoing refurbishment projects. Here is a brief glimpse of what it actually looks like in reality. And Gamlestaden Fabriker provides a space for food, drink and culture and tomorrow essential business. For example, we have a growing hub into sustainable food innovation.

In the coming years, about a density of 60,000 square meters of offices and 300 homes, restaurants and services will be added here. And we have a strong development portfolio long term that we can start in the right market conditions, totaling of 330,000 square meters divided in both segments.

So to summarize, in a turbulent world, we continue to focus on what we can influence. Our single greatest success has been and will continue to be our ability to rally around the work with our vacancies and with our tenants, both new and existing.

We will fill our available spaces in our properties, and we will manage our costs. Securing earnings give us the strength to keep development projects and our beautiful Gothenburg. We remain active in the transaction markets to optimize the portfolio in different ways. The organization has demonstrated that we can deliver even in tough economic climate and our knowledge and closeness to the market and our clients, that's our strength.

Economic cycles they turn, this one will do so as well and then we will meet a more vibrant rental market. It might take some time. But in the meantime, we will continue to work on what we can influence. Our determination will remain central and that's precisely where our strength lies.

I would like to thank you for this, and we are now opening up for questions.

[Operator Instructions]. There are no more questions at this time, so I hand the conference back to the speakers for any written questions.

We would like to thank you for listening and looking forward to a very nice summer, and I hope you will have one too. Goodbye.