Wihlborgs Fastigheter Aktie

So welcome to the presentation of Wihlborgs 9 months report 2026. Even if many uncertainties in the world continue, the glimpses and ray of light we have seen from time to time start shining brighter and brighter in the region. It was many years since the portfolio of ongoing discussions was as long as and good as it is today. Even if the vacancy will continue up at least 1 more year as a result from acquisition and adding on new areas, the operating surplus and income from property management continue to increase in a way that I'm proud of.

We will not be the only one deciding the time schedule of necessary decisions on new leases, but my best estimate is that we have passed the apex on the more challenging time. The buzz of what's going on definitely gives that as a fact. And if not, we are prepared for that as well. Let's start with the Q3 report. And in the end, we will also give some notifications about what we see ahead with the benefits from a larger portfolio. Let's remember that it might look like we have acquired 95 properties, 400 tenants, and 48 employees.

In fact, we have acquired a market position that is unbeatable. We start with a summary of Q3 '26. Rental income up 5% compared to a year ago, operating surplus plus 7% income from property management, plus 6%. Net letting negative at minus SEK 27 million, but also important to note that the number of discussions and possibilities ahead are higher than we have seen in many years. And market rents as well as rental income in like-for-like portfolio continue to develop positively. Net debt-to-EBITDA at 10.6x, good access to financing, and the acquisition of 95 properties from Castellum at a value of SEK 13.3 billion was completed in 1st of October. With some more figures on that for the full period.

And here, we also find some records. Rental income up 7% to SEK 3.484 billion, a new record. The operating surplus plus up 8% to SEK 2.530 billion, also a record, and income from property management up 8% to SEK 1.604 billion and a new record. The result for the period was SEK 1.539 billion, corresponding to SEK 5.01 per share, and EPRA NRV has increased by 9% to SEK 101.59 per share adjusted for paid dividend, another record.

A comparison of the rental income first 9 months '25 and first 9 months '26 indexation, plus SEK 33 million; acquisition plus SEK 68 million; currency effect, minus SEK 60 million; additional charges, plus SEK 27 million, and completed projects, new leases, and renegotiations plus SEK 130 million, which means that our core business is working well and worth pointing out these days. The things we do best, we will have the opportunity and obligation to do more of ahead of us.

So positive numbers for rental growth, but negative net letting for the quarter, minus SEK 27 million. New lettings were SEK 60 million and a higher level of termination than last year. Q3 normally starts slow and then picks up. We started quite okay, had a normal quiet period during vacation and then the number of discussions has turned into a really good level. But several expected signings have been postponed a couple of months and, most of all, a large termination was signed a few weeks earlier than we expected. So everything is not slower, sometimes also quicker than necessary.

Worth mentioning regarding the large termination in Denmark is that it was expected in Q4, and we have -- we are prepared with 2 different possible tenants in discussion for the whole building. And as mentioned, we have actually a longer list with high volume discussion than we have seen in many years. And that is before we add on the prospect from the Castellum portfolio. So I was positive in Q2 for the fall, and I'm more positive now.

The conclusion is that the fall has just started. Here are some of the tenants that we have signed new leases with during Q3. I especially want to mention Fortnox, who adds on a good volume to our project at [ Syret 6 ] as well as [indiscernible] in Helsingborg is also very interesting. All of them are examples of higher standard, higher rent per square meter, and project possibilities in existing buildings. Here, we have the net letting in a historical perspective, lettings in green, terminations in light blue, and dark blue stacks are the net letting. A decent volume of new lettings for Q3, but higher terminations for the quarter.

And the list of our 10 largest tenants in alphabetic order, strong customers, and they contribute with 90% of our total rental income. 7 out of 10 are governmental tenants and the public sector contributes with 22% of total rental income. Rental value as of 1st of October '26, excluding the large transaction, is SEK 5.260 billion per year, plus 6.7% and rental income, SEK 4.597 billion, plus 5%. Strong figures, and this is an effect from a combination of different things, but the largest parts are new and renegotiated leases, as I mentioned earlier.

Looking at the like-for-like figures, all the properties we owned a year ago, excluding projects, compared with updated figures, we can see that rental value is up 2.5% and rental income is up 0.6%. For the full portfolio, this is another example of the fact that if we work with our properties, we can perform well above index. Here with examples from existing portfolio as [indiscernible] Malmo and Vatet in Lund as well as new builds like Posthornet in Lund.

Changes in the market value of our properties. We started the year with SEK 64.440 billion in accordance with the external valuation of 100% of our portfolio. We have made acquisitions, which adds on SEK 534 million, investments, SEK 1.458 billion, divestment, minus SEK 4 million; changes in valuation, plus SEK 49 million and together with currency translations of SEK 657 million, that summarized to a value of SEK 67.108 billion. Valuation parameters are without changes since year-end, including assumed indexation of 1%. So very small changes in valuation.

The growth comes mainly from investments and the transaction we made in Copenhagen. Here is the long-term trend for portfolio growth from SEK 7 billion to SEK 67 billion in 20 years' time and growth every year. These figures, the running yield show how we actually perform in relation to the valuation. So this is not the valuation yield. And this is also figures excluding properties acquired 1st of October. So overall, an occupancy rate of 89%, excluding Projects & Land with operating surplus of SEK 3.403 billion, which gives a running yield of 5.4%.

Fully let, the portfolio would give a running yield of 6.3%. In the office portfolio, the market value is SEK 53.655 billion with an occupancy rate of 89%, 88% in Malmo, 89% in Helsingborg, 88% in Lund, and 92% in Copenhagen. The operating surplus from offices summarized to SEK 2.831 billion and a running yield of 5.3%, 6.1% fully let, just small changes since last quarter. In Q2, these figures were affected by moving our projects Blackhornet and Posthornet from being classified as projects to the running portfolio.

In Helsingborg, the occupancy overall for offices are slightly down, but not in the city center where the figures continue to pick up. And that is actually the fact also for the full year in Malmo if we look at the like-for-like portfolio. Higher occupancy today than a year ago, but not at levels that we are satisfied with, of course. The Logistics/Production portfolio has a value of SEK 9.460 billion, 93% occupancy in Malmo, 79% in Helsingborg, 94% in Lund, and 99% in Copenhagen. In all 86% occupancy with a running yield of 6%, 7.3% fully let. Parts of the portfolio in Helsingborg continues to be challenging in a shorter perspective when it comes to occupancy.

It's the southern parts in city, and they will be -- in time, be transformed to more housing, the harbor will move, et cetera, which affects our portfolio in that area. But in time, the city will continue to develop well. The development of our total portfolio running yield, 5.4% still brings stability, not least since the portfolio overall has a high quality and good location. An increase of the running yield since 2021, but the vacancy had a negative impact, and we aim to turn that around in line with improvements of the market.

And our position in the market has strengthened significantly since 1st of October, but we will come back to that. So what about the market? The world outside the Nordics continue to be challenging in different ways, but in our own market, many things point in the right direction. The economic recovery in Western Skane has gained significant momentum, and the regional unemployment decreased at a faster rate than in other Swedish metropolitan areas, supported also by higher needs in the Copenhagen area, of course.

This is our catalog of our value and properties in our 4 cities and Q3. 39% of the value in Malmo, 22% in Helsingborg, 17% in Lund, and 22% in Copenhagen, and we are totally convinced that we will -- we have chosen the right places for our business. The region continues to attract attention investments from example, SAAB, SAS and the logistics sector. It will continue to be positive for the region, for Wihlborgs and for Sweden. Some sustainability highlights. We are now ranked #3 out of 21 peers in GRESB and show positive progress both for measurement in property management as well as for project development.

Our project Ackumulatorn 1 for ARM is the first project in Sweden certificated with Miljobyggnad 4.0 and ZeroCO2 certification for refurbishment. Our impact from Scope 1 and 2 have decreased in a very good way in Q3 and largest impact from our less refrigerant loss from cooling machines. And that shows that our focus on reducing conventional refrigerants really makes a difference. And time for financials. Over to you, Arvid.

Thank you very much, Ulrika, and good morning, everyone. Looking at the P&L for the quarter separately, we can see that rental income increased by 5% to SEK 1.160 billion. The operating surplus increased by 7% to SEK 848 million, which means that the surplus margin improved somewhat to 73.1% in the quarter. Income from property management increased by 6% to SEK 527 million. As you can note, there was an increase in interest expense, and this was primarily due to an increase in CIBOR.

As you may have noted, 3-month CIBOR has increased from around 2.0% at the start of the year to almost 2.6% now, while 3-month STIBOR has basically been flat during the same period. Property valuations were more or less flat at plus SEK 21 million in the quarter. The changes in market rates meant positive valuation changes in the derivatives portfolio of SEK 350 million, and that makes all in all, a profit for the period of SEK 689 million. The next slide shows the balance sheet end September in comparison with the status 12 months previously.

Investment properties amounted to SEK 67.1 billion, up SEK 3.6 billion in 12 months or 6%. Equity stood at SEK 24.9 billion, up SEK 1.4 billion, also an increase of 6% and borrowings amounted to SEK 35.2 billion, up SEK 2 billion versus end Q3 2025. Translating the previous slides into key figures, you can see that the equity ratio was 36.2% in Q3, slightly stronger than end Q2, but the same number as end Q3 2025. LTV stood at 52.5%, roughly in line with last year and also here a little bit stronger than end Q2. Interest coverage ratio was strong at 2.9x. The EPRA NRV per share was SEK 101.59, up 9% versus 12 months previously if you adjust for paid dividend.

And the EPRA EPS was up 10% to SEK 4.78. This graph shows the EPRA NRV since 2009. And over that time period, the average annual growth of EPRA NRV has been 14% adjusted for paid dividend. We have set ourselves some financial targets relating to financial stability. The loan-to-value shall not exceed 60%. And in the graph on the bottom right, you can see the development since 2011. From the current level of 52.5%, this number will increase to around 59% due to the completed acquisition in October.

Reduction of the LTV to around 55% will primarily be driven by our cash flow generation, but we will, of course, also review the composition of our portfolio to focus on properties where our cluster strategy creates the greatest value. The equity/assets ratio shall be no less than 30% and currently stands at 36.2% and the interest coverage ratio is now at 2.9x, which we think is a strong number, although not, of course, to be compared with the situation when interest rates were 0 a few years back. Another relevant metric for describing financial stability is net debt-to-EBITDA.

As you can see on the graph, Wihlborgs has had a stable development to this number since 2006, and currently, we are at 10.6x. On this slide, you can see our sources of financing as of end September, total borrowings of SEK 35.2 billion. 41% of our loans come from bilateral bank agreements with Nordic banks, 36% from Danish mortgage loans, and 23% from the bond market. Despite the geopolitical turbulence and a shaky stock market for the real estate industry, we would claim that access to financing is still good, both from banks and from the bond market. Here, you can see the details of our loan portfolio.

The average interest rate is now 3.37%, up from 3.25% in the previous quarter. As mentioned when I commented on the P&L for the quarter, the largest part of that increase comes from the increase in CIBOR. The average fixed interest period is 2.5 years, unchanged from last quarter and in line with our risk management policy. And the average loan maturity is an unchanged 4.9 years. This slide shows the development of these numbers over the last 5 years. And as you can see, there is no drama in this development.

A little bit more drama in the graph on this slide. It shows our available funds as of end September. The very large number, SEK 17 billion is, of course, explained by the facility in place to pay for the SEK 13 billion acquisition, which was completed on October 1. Adjusted for that, the available funds were a more normal SEK 4 billion. And with that, I hand back the word to you, Ulrika.

Thank you. And an update on our investments in progress and a quick overview of some of our largest projects. During the period, we have invested SEK 1.458 billion, and it remains SEK 1.488 billion to invest in approved projects. We continue to expect 6% or a bit above 6% yield on cost for new-build offices, and 7% or a bit above for Industrial and a good mix of refurbishment and new builds in the portfolio. Some examples. A new project from Q2 at Vatet 1 for a company in the automotive tech industry, just bid the project we have completed for ARM.

We invest SEK 82 million and get 7.4% yield on cost, including the value of the property and including maintenance, 30% yield in total if we exclude the value of the property. Completion in Q1 '27. The large project at Amphitrite 1 in Malmo for Malmo University is running well in accordance with plan, a bit above 20,000 square meters for Malmo University in a 10-year lease. Investment, SEK 1.130 billion and completion is planned to late Q4 '27.

Discussion continues regarding a possible prolonging of the lease to 20 years. At Kranen 7 in Malmo, we will invest approximately SEK 106 million, 100% pre-let to a preschool for the municipality. 2,900 square meters completion is expected to Q3 '27. Public Procurement Act is completed and work has started well. And at Skrovet 6 in Malmo, we refurbished 11,000 square meters, now 90% pre-let and moving in has just started, but will continue until Q2 '27.

Let's remember that this is a building that Stad left in January this year, so a very quick turnaround. At Muskoten 20 in Helsingborg, we have just started a new project where we invest for our tenant MilDef, a combination of refurbishments on an existing vacant building of 2,400 square meters. We have new builds 3,400 square meters and adding on the existing lease of 4,400 square meters. So in total, 10,200 square meters and SEK 97 million investment, including value of the land. Yield on cost, 7.2% and completion in Q3 '27.

And Note Lund has moved in and Lund University will move in now in Q4. Well-used land area and long leases in total 14,500 square meter investment, SEK 260 million and yield on cost approximately 9%. And now let's talk about the large acquisition with completion 1st of October. Since the competition authorities regulation did not allow us to obtain the detailed information prior to completion of the transaction, completion as an expression might be a bit odd.

Now we have a 6-month period to get all the data in place, but we have already taken a lot of actions to make the transformation as smooth and quick as possible. The organization that was included in the transaction has during these first weeks been downsized by approximately 30%. We work a bit differently at Wihlborgs, and it's our ambition to be very quick in adjusting operations so that the whole company works in the same way at least from mid-November. The cost for adjusting the organization is estimated to SEK 10 million in Q4 as a one-off, and we will save approximately SEK 20 million per year.

Our focus is also to be quick and find the best business opportunities in a mixed property and customer portfolio. These discussions are already in full action, thanks to very dedicated employees from both sides. In total, 95 properties, 635,000 square meters, and agreed property value of SEK 13.3 billion and a mix between Offices and Industrial. We will get a higher operating surplus and higher income from property management from day 1, an initial running yield of 5.3%, and a mix of properties very much in line with our own portfolio.

On top of better earnings, the portfolio also includes a higher vacancy, and we will use that as an upside ahead. Counting vacancy as an advantage can only be done under certain circumstances. Quality and micro-location for the properties must be right, the macro location. There must be a potential for growing needs in the market as such, but most important of all is your own market position. We have bought an unbeatable market position, and that will serve us and our tenants well ahead. If we start to look at Malmo, here is the summary of the largest commercial property owners in Malmo before the acquisitions and after.

We had a good position before, and that has been an advantage. But now we can gear up our momentum. In Lund, the shift is somewhat less pronounced. We were already significantly larger than our industry peers to begin with. This has historically been beneficial both for us and our tenants, but now we increased both offices and land for development in the most attractive area. And finally, in Helsingborg, the shift in offices is significant. Only smaller property owners in the area can compete, and no one is close to be able to offer the flexibility that we can.

In the Industrial segment, we increased in the attractive Berga and South Vala areas. If we add on the acquired properties to our property table from our Q3 report, it will summarize like this. The rent and notice for Q4 '26 are used as income, and costs are based on historical data. That would give us an operating surplus of close to SEK 4.2 billion and still a running yield of 5.2%. And here is also including the projects, of course, from the Castellum portfolio. Here, we follow some maths showing the impact of our black existing properties and the red ones are the acquired ones.

This is the Malmo overview, zooming in at Malmo City and Outer Malmo with Fosie in focus. The overview of Lund and zooming in at the Ideon area. Here is as Gastelyckan and western parts of Lund, the overview of Helsingborg and the areas of Berga and Southern Vala and City of Helsingborg. These maps can be looked at in our presentation afterwards, so see them as an appendix.

And with that, we summarize the presentation, continued growth in revenues and profit, still elevated vacancies, but improving activity among potential tenants, completion of the SEK 13 billion acquisition 1st of October, rapid integration in progress, and we describe the acquisition as an excellent strategic fit, and not least, it gives immediate positive effect on operating surplus, and of course, also a long-term potential in the market.

And with that, we are open for questions.

[Operator Instructions] The next question comes from Staffan Bulow from SB1 Markets.

I have a couple of questions, starting with the first. Now when the Castellum deal is closed, could you give some flavor on the ambition to decrease LTV to 55% over the next 2 years if you were to sell? What kind of assets are you looking to sell? Is it fully developed, certain geographies, certain property segments, et cetera?

First of all, we will continue to focus on our cash flow generation, of course. But as always, when you buy a large portfolio, there are some areas that maybe not suit us best. To focus on our strongest hubs, where we can do the best results for our tenants is -- that will continue to be our focus. So -- but I think we will find also some areas and some properties that might be better for another solution. So that process has, of course, started.

Can you perhaps comment on how large the share of the portfolio is in your hubs?

Both. As you saw in the map, a very large part of it, almost all of it is very hitting the best areas in our portfolio and competing very well. So that is the part of why it's so strategic well.

Okay. And then moving on to central admin. If I understand correctly, headcount will increase by 48 employees following the transaction. Could you give some guidance of what you expect sort of normalized annual central admin cost to be following the acquisition?

Correct. It was 48 or 49 employees that come along with the portfolio, and we have reduced that by 30% until now. So we have find a way to reduce cost for staff with approximately SEK 20 million per year already, and that is being fulfilled now during Q4.

But maybe to clarify, the staff that we're taking over is to a very limited degree, central administrative functions.

Okay. That makes sense. And then a question on the occupancy in the Castellum portfolio. I think it declined from 85% to 83% from signing and closing. Were you aware of this increase? And could you provide some color on the underlying drivers here?

We were aware of that things can happen during this time. And for example, the Post moving out during this period. So that has affected the numbers. And of course, when you give signals to people that something is going to happen, maybe you don't really have the momentum to continue at the same pace that they do in a normal situation. So that things can happen during this time between when you agree -- between the agreement and the transaction day. Of course, we were aware of that.

But we also see that we have signed leases in the Castellum portfolio that will add on a better volume ahead, but we don't have that numbers in total. So the numbers you see in this sheet is for the rent roll for Q4 '26, and that is a fact. We know that. We don't all know all the additional normal income, but we know what has been notified for Q4. And we have not added on income from new leases signed that will be entered during 2027. So that is not including in the numbers today.

Okay. And one final question. The Danish termination behind the negative SEK 27 million net letting. Could you provide some color on the rental value of that large termination?

Yes. It's pretty much in line with the total negative. So it's a large property where Schneider was the only tenant, single tenant property. And as I tried to point out, we were aware of that they wanted to leave. So we have already 2 ongoing discussions with possible tenants for the whole property. But -- and we had a possibility that these would meet each other in the Q4, but we got the termination earlier. So that's behind.

The next question comes from Oscar Lindquist from ABG Sundal Collier.

So just a follow-up question on the lettings or net lettings. So if we disregard the Danish letting discussion and sort of your comments on activity in the letting market, is that volume increase driven by sort of like-for-like? Or is it driven by the Castellum acquisition?

The net letting is not including any activity from the Castellum portfolio.

I mean forward-looking.

Are you forward-looking? Did you get the question?

Yes. You should interpret our comments on the activity regarding letting discussions as relating to our existing portfolio. It's a little bit too early to have very qualitatively good comments on the ongoing discussions regarding the newly acquired portfolio.

That's correct. Correct. My comment on tenant discussion is without adding on all the ongoing discussions with the Castellum portfolio, of course. But that there is good activities there as well. But I think that maybe we have a high tempo in the original Wihlborgs portfolio.

Yes. And how much of that do you think you can materialize now in Q4?

Always tricky to say, but some of it, I'm certain that it will be decided during Q4.

Okay. And then on Schneider moving out, when are they leaving? And do you expect that letting to be fully reversed in Q4?

They will move out end Q1 '27, so start of March '27. And at least I could say that we have a good opportunity to find a solution for a long-term activity at this property in Q4. But I mean, I can't say the date for a decision, of course. But we have 2 ongoing discussions with different tenants who are interested of the whole property. And additional on that, of course, we had already looked at the possibility to split it down to a multi-tenant facility. So I have good faith in this property, but whether the solution will be concluded in Q4 or take a bit longer. That's impossible to say at the moment.

Okay. And then one final question now going into Q4 on sort of the bridge financing effect, could you guide on either what effect do you think this will have on the average paid interest rate or sort of the all-in funding cost of the acquisition?

What I can say, as we've stated before, the bridge financing facility is in place. And initially, the margin that we're paying on the bridge financing facility is well below the average margin that we have on our bank debt. But the way these bridge financing facilities are constructed is that on a quarterly basis, the margin of the facility increases. So initially, it will average down the margin that we're paying. But in time, that will change.

The next question comes from Jan Ihrfelt from Kepler Cheuvreux.

I just have one question, and that is a follow-up question more or less for the former speaker. And could you maybe quantify the, let's say, the extraordinary effect on the financial net in the third quarter due to the upcoming acquisition on October 1.

The extra effect on the financial net in the third quarter was only a few million, like SEK 2 million, SEK 3 million or something. It was basically a commitment fee of this facility.

The next question comes from John Vuong from Van Lanschot Kempen.

Just following up on the integration on the Castellum portfolio. I appreciate it's still early times and you're giving yourself 6 months. But what are your first thoughts after 3 weeks besides the downsizing that you've done? Are you seeing any other low-hanging fruits or synergies?

For example, when we add on the tenant ongoing discussions from both the original Wihlborgs portfolio and the Castellum portfolio, we see immediate possibilities for tenants that are in discussion and don't really find the best solution, and then we can move them to the other parts of the portfolio. So I'm eager to find the first lease signed between these 2 portfolios. So these discussions has already started. And of course, 2 organizations have a bit different kind of contact areas where they are best. So when we add on these skills to the same work, it will give a positive effect also. So I think we have in these few days, succeeded in a very good way to give a new momentum also for new leases and new discussions.

And maybe on that, so to what relative size do you actually add new leasing prospects in terms of, say, tenants that you didn't talk to before?

I cannot quantify that anyway. But I mean, if we take some kind of numbers, we know that the new portfolio includes 400 different tenants. They will have needs. And we see how effectively we have been able to work with that in the Wihlborgs portfolio before. And by adding on a great volume to that, we can achieve more. So, but I can't give you any numbers on how large the -- how much the ongoing discussion volume would be. And my comment regarding a good volume -- better volume now than we have seen in many years, that is only in the Wihlborgs portfolio. So it will, of course, be even better when we add on the discussions ongoing in the Castellum portfolio.

That's fine. And just on that last comment, when you talk about leasing discussions for the existing portfolio, are you talking about filling up existing vacancy? And does that require any CapEx in terms of renovation projects? Or is it just basic catch-ups that you're seeing?

I would say that the quality of the Castellum portfolio is good. So -- and of course, there's examples of things that will need some more work and some more CapEx. But otherwise, it's -- the way we do things in Wihlborgs, I expect us to be able to do the same thing in the Castellum portfolio. Of course, we can add on something a bit of a CapEx, but also get a higher rent than the rent -- the former tenants paid. So it's not any dramatic shift in that. It's just a larger portfolio and larger possibilities, and we will continue to do the way that we have been successful in before.

Sorry, I just meant the existing portfolio without the Castellum portfolio. So you mentioned that leasing discussions there also increased. Is that for existing buildings? Or is that also for new projects?

Mainly for existing buildings. Yes. So, and that will be the same kind of situation that we had before where we add on something, but it's not any dramatic -- it's not any dramatically large project where we have to clear everything out and start over again. More of the volume of discussions have been increased in the normal part of the portfolio, as I said.

The next question comes from Lars Norrby from SEB.

A couple of add-on questions. First of all, on that Danish property where you are talking to 2 potential new tenants. If you manage to sign any of those contracts, would it require any type of significant CapEx or delay in moving in? Or can that come quite quickly?

If it will be one of the single tenant possible tenants, then the CapEx will, of course, be quite much lower. If we should change it into multi-tenant building, it will need some extra CapEx. So our best chance is to go for one of the 2 that needs the full property.

But if I may add on, since we have not signed any new lease, we don't know when a new tenant could move in. But you can bear in mind that it's more common for a rapid move-in, in the Danish market than it is in the Swedish market.

Got it. Second and final question regarding the financing of the deal, the transaction, the SEK 13 billion. How have you acted when it comes to interest rate fixing? Is it at a similar level as you have in your total portfolio prior to that transaction or something about that?

I mean we put in place an interest rate risk management policy back in 2018, and we think it has served us well. And also with this acquisition, we continue to follow the same interest rate risk management policy. Basically meaning that a certain proportion of interest maturities shall fall due during different time scales, 0 to 1 years, 1 to 2 years, 2 to 3 years, et cetera. So we continue to work the same way with our interest rate hedging.

The next question comes from Tobias Kaj from Nordea.

I would like to start to ask you regarding potential disposals. Did I understand it correct that you kind of only look at divestments of properties which are outside of your strategic hub? So could you also consider to divest properties within those areas sort of more dry assets?

Absolutely. If it's something that we think that we might not be the best owner of tomorrow, of course, that is always a part of the strategy around the portfolio. So well-developed long-term tenants where we cannot add on much of our skill ahead. That is, of course, also a possibility.

And is it possible to say anything about how long those processes are? Is it likely that you could announce something already during this year in terms of divestments? And if so, how large volumes?

No, I cannot give you any details on that. But -- and as you are aware of, changing things in the portfolio can always take some time. And it's -- for us, it's better that these things will be done in a very good way, and we have patience in this.

And regarding your bridge financing, how many quarters does it take until that will become more expensive than your existing bank financing?

Approximately 4 quarters...

Okay. And do you need to get down below any certain LTV level before you're able to refinance the bridge until more normal or below?

No.

And one final question regarding your occupancy rate, we will see a bit of a decline as the Castellum portfolio is consolidated. Based on the recent quarters' net activity, should we expect to see a continued increase in vacancies due to that as well?

I think it's too early to say. I mean we also have new leases coming into the portfolio in 2027, even more in the end of 2027, of course, but also in Q1. So I think it's a bit early to say. I think we see good activity and we have good leases coming in, which will meet some of the vacancy.

The next question comes from Erik Granstrom from DNB Carnegie.

I have one question. It's regarding your comment about the vacancy rate. You stated that you expect it to continue to increase for at least one more year due to the transaction and so forth. But given after the transaction with Castellum, what is the reason why you're expecting the vacancy to increase 12 months from now?

Maybe I was a bit unclear on that. Sorry for that. It will increase when we include the Castellum portfolio, and that will stick with us for at least a year, just so that we have to be a bit patient before we get the new momentum to turn around. But I don't expect it to continue to increase during 12 months. Sorry, that was unclear.

The next question comes from Viktor Hokenhammar from Danske Bank.

Just one question left from my side as well. In your Logistics and Production portfolio, how do you access the vacancy rate here? I think it's around 14%. And also if you have any comment on how it compares to the broader market?

It's especially the southern parts of the Helsingborg city portfolio that is -- have increased vacancy and that affects the portfolio. The most other areas are producing very well, and the vacancy we see there is more of a -- I mean, we have some terminations moving out and -- that is more of just a period thing. But the southern parts of the Helsingborg portfolio where we have to work with them more, is actually that area is more seen as a development area, and that affects the numbers.

There are no more questions at this time. So I hand the conference back to the speakers for any written questions and closing comments.

Just double-check, if we have any questions. Yes, we actually do. Sorry for not being paying attention to that. First question, to drive occupancy higher in the acquired portfolio, will there be CapEx required? If yes, can you give some color?

We got almost the same question before. I don't expect higher CapEx in that kind of refurbishment and adding on qualities than we see in the other part of the portfolio. So pretty much in line with the same thing, not the largest development, new large project thing. It's more adding on some flavor.

Another question. Can you give some color on what sort of interest you foresee for the Castellum portfolio vacancy?

As same as we see from the rest of our portfolio, since the products are very much in line with what we already have and in the same areas. So I think the interest among tenants will be good.

And there was another question regarding interest rate hedging, but we've already talked about that. So no further questions via e-mail.

Okay. So by that, thank you for your attention. And if you have any further questions, please just contact us, and we'll try to answer.

Thank you very much.

Thank you.

Welcome to the presentation of Wihlborgs First Half Report 2026. So let's start with the future and the acquisition of 95 properties in Malmo, Lund and Helsingborg. 635,000 square meters initial yield, including property management costs at 5%, just in line with our Swedish portfolio and this is before we have done any efficiency improvement that we expect from ourselves. Additional upside is 15% vacancy to give development possibilities ahead. The total portfolio suit us almost like a tailor-made glove. And the location is right into our most appreciated areas, the mix with both offices and industrial logistics is perfect. If we look at the location of our properties in Malmo City, including part of Dockan and Nyhamnen, Wihlborgs owned the black colored buildings in this map, and here, we can add on 11 properties in the same area located as the red dots. In the area of Fosie in Malmo, we can add on 17 properties.

In Lund, at the Ideon site, there is 4 properties from Castellum, 2 of them our land for development. In the city center of Helsingborg, we have several large properties, and here is the location of 14 additional properties. And in the Berga location in Helsingborg, we can add on 10 properties. So almost like yin and yang for these portfolios. Now we can work with a larger portfolio for our tenants, but also to make room for the other investors that might be a better owner for some of the areas of properties. The interest for investments in the region is high. This is a way to create possibilities for future growth of income and growth of operating surplus for our shareholders. If we can choose, we are totally convinced that if you can get growth in the market you already know very well, you can perform better. And if you combine a large acquisition with both higher operating surplus immediately and larger possibilities for future development, it's a perfect match. We have done things like this several times before. The acquisition of Ideon from Ikano 2013 increased the LTV to 63% initially, and the acquisition of Nya Vattentornet 2019, gave us a quite large additional vacancy in an area where the vacancy in our own portfolio was already high. Now the Ideon area is very successful and filled with tenants in different sectors. Our plan is to do the same thing with the Castellum portfolio, and it will demand hard work and some time. But for us, this is a very well-known business in a very well-known market.

The price of the portfolio as agreed to SEK 13.3 billion, 5% under Castellum's valuation. And let's remember that Castellum from 2022 had ahead decreased the valuations of the properties significantly. We think that Castellum's valuation can be fair, but the total portfolio and including the whole business, the price should be a bit lower than the valuation property by property, just in accordance with the agreement. And what about timing? Is summer 2026, not the time for cautiousness? Our call is that business is best done when the shop is open, and it's better to be ahead of the queue. Running a property portfolio means to look far ahead, to put some plants in the soil and be prepared to harvest in the long run. We think the opportunities for Wihlborgs improved significantly with this transaction and there's no opportunistic thoughts behind that, just a dry, data-driven investment model. Let's go to our report, and we'll start with a summary of Q2 26 rental income, up 7% compared to a year ago, a new record level. Operating surplus plus 6%, also a new record. Income from property management, plus 6%, net letting positive at SEK 5 million, but most important that the number of discussions and possibilities ahead have improved after the frosty start of the year. Market rents as well as rental income in like-for-like portfolio continued to develop positive. Net debt-to-EBITDA at 10.7x and of course, we signed the agreement with Castellum, as I just mentioned, but high focus on daily business, which continues to be our strong core.

With some more figures on that for the full period, rental income up 8% to SEK 2.324 billion. The operating surplus, plus 8%, SEK 1.664 billion, and income from property management, plus 9% to SEK 1.077 billion. New record for all of them. The result for the period was SEK 850 million, corresponding to SEK 2.76 per share and EPRA NRV has increased by 9% to SEK 99.66 per share adjusted for paid dividend. A comparison of the rental income, first half '25 and first half '26. Indexation, plus SEK 22 million; acquisition, plus SEK 59 million; currency effect, minus SEK 16 million, additional charges plus SEK 26 million and not at least, completed project new leases and renegotiations plus SEK 91 million, which means that our investments and activities pays off. And the net letting positive with SEK 5 million, lower activity on both new leases and termination than a year ago, but most important, much better activity now than in the beginning of the year. So positive signals for the fall, but as usual, now promises ahead. The number of discussion is higher and the volume of possible new areas per tenant has also increased. Now we also see signs of tenants who decreased their areas a few years ago. They're coming back and ask for additional areas, an upgrade as we like.

And to comment on something that happens on other markets, the large Ericsson agreement in Stockholm, which I see as a clear sign that the trend we have seen among smaller tenants for quite a long time also is in line with how larger companies make their decisions. Location, yes, attractiveness for the employees matters. Design, all the projects in Hagastaden have in common that they focus on human needs. And what about time? The leases signed clearly that Ericsson's things that they will need office space is also in 20 years' time. And all of us understand that the Ericsson employees will do totally different things in 20 years. But they still think that they will have people working in common areas. And something about the price. Yes, they are willing to pay. It will be very interesting to see where this trend continues. Here are some of the tenants that we have signed new leases with during Q2. The defense industry continues to be interesting with the lease with Babel Scientifique at Sorte Maseve for the full property and the med tech sector are represented by Cantargia. Here are the net letting in a historical perspective, lettings in green, terminations in light blue and dark blue stacks are the net letting. We know that we have attractive products to offer. And when the market grows, which I will come back to, we will be a part of that growth on both the Swedish and Danish site of Oresund. And the list of 10 largest tenants in [indiscernible] order, strong customers, and they contribute with 90% of our rental income. Seven out of 10 are governmental tenants and the public sector contributes with 22% of rental income. Rental value as of first of July '26 is SEK 5.167 million per year, plus 7.4%, and rental income SEK 4.562 billion, plus 6%. Strong figures, and this is an effect from acquisitions, indexation, but not at least new project and tenant willing to pay for the right quality.

Looking for like-for-like figures, all the properties we own a year ago, excluding projects compared with updated figures, we can see that rental value is up 2.6% and rental income is up 1.5%, better than indexation of 0.9 and still with a high vacancy, that means that rents continue up. Changes in the market value of our properties. We started the year with SEK 64,414 billion in accordance with the external valuation of 100% of our portfolio. We made acquisition, which adds on SEK 534 million; investment, SEK 1.042 billion; divestment, minus SEK 4 million; changes in valuation plus SEK 28 million. and together with currency translations of SEK 212 million. That's summarized to a value of SEK 66,226 billion. Valuation parameters are without changes since year-end included assumed indexation of 1%. So very small changes in valuations. The growth comes mainly from investments and the transaction we made in Copenhagen. Here is a long-term trend for portfolio growth from SEK 7 billion to SEK 66.2 billion in 21 years' time and growth every year. These figures, the running yields show how we actually perform in relation to the valuation, so not the valuation yield. Some of the projects like Konnet 1 in Malmo and Posthornet 1 in Lund have moved from project line to the running portfolio. So even if they're not fully completed and occupied, that's the main reason for occupancy dropping 1 percentage point to 89%, excluding project and land. With an operating surplus of SEK 3.389 billion, that gets a running yield of 5.4%, fully let, the portfolio would give a running yield of 6.3%.

In the office portfolio, the market value is SEK 53,241 billion with an occupancy rate of 89%; 88% in Malmo; 90% in Helsingborg; 88% in Lund and 91% in Copenhagen. The operating surplus from Market summarized to SEK 2.809 billion and a running yield of 5.3%, 6.1% fully let. And as mentioned, the occupancy in Malmo Lund are affected by moving the project BlackHornet and Posthornet from project line to the running portfolio. In Helsingborg, the occupancy has strengthened and most of all, the ongoing discussion in the office market have improved. The logistics production portfolio have a value of SEK 9.378 billion; 92% occupancy in Malmo; 82% in Helsingborg; 96% in Lund and 99% in Copenhagen. In all 87% occupancy with a running yield of 6.2%, 7.3% fully let. Development of total portfolios running yield 5.4% still bring stability, not least since the portfolio overall has a high quality and good locations, an increase of the running yield since '21, but the vacancy has a negative impact, and we will aim -- we aim to turn that around in line with improvements of the market. So what about the market? In the last report from Oresunds Instituttet we can once again remind us of Malmo as the driving city of employment growth in the Oresund region, Malmo yellow, Stockholm as their ruled gray line and also interesting to see the pickup in Lund, the last years, the green line. We can also see that the number of unemployed decreases quicker from a higher level, though, and the number of newly started companies is also higher than elsewhere.

As usual, it's most important to be in the right places almost all the development in Skane is in the Western part. So Lund, Malmo and Helsingborg continue to be the places to invest for us in Sweden. On the Danish side, we note the record high GDP growth for the first quarter of 6.2% compared to the same quarter last year. And it's also worth mentioning that the infrastructure investments could continue with, for example, these 3 completed projects. Koge Nord station, a new bridge across Storstromen and now 4 tracks with new platforms passes through Copenhagen Airport. A catalog of our value and properties in our 4 cities and Q2 2026. 39% of the value is in Malmo; 22% in Helsingborg; 17% in Lund and 22% in Copenhagen. The region continues to attract attention from investments, for example, Saab and Sas. It will continue to be positive for the region for Wihlborgs and for Sweden. Some sustainability highlights. We continue to improve our figures and have also got some international sustainability recognition, for example, being 1 of 3 Swedish property companies on Times list of World's Most Sustainable Companies which also includes business models and financial performance. We also got the approval for our updated size-based target and some figures showing improvement here.

Maybe I'm most proud of the figure for low climate impact from our latest completed projects, 202 kilograms per square meter carbon dioxide equivalents, really low levels in successful projects, but more on that topic in report and time for financials. Over to you, Arvid.

Thank you very much, Ulrika. If we look at the income statement for the second quarter isolated, we had rental income of SEK 1,174 billion. That's up 7% and corresponding to SEK 77 million increase quarter on the second quarter of 2025. I think it's important to highlight also that out of the increase of SEK 77 million, SEK 57 million actually comes from renegotiations, new leases and projects. So that is the core business showing growth, which is positive. The operating surplus amounted to SEK 864 million, up 6%, representing a surplus ratio of 74%. The income from property management amounted to SEK 556 million, up 6% that includes transaction costs of about SEK 5 million stemming from the acquisition from Castellum which Ulrika talked about earlier. Both rental income, an operating surplus and income from property management actually show record levels historically for Wihlborgs, which also, of course, is very satisfying.

We had positive value changes in the quarter of plus SEK 10 million, so very small, but still on the positive side. Negative value changes of the derivatives. But all in all, a profit for the period of SEK 301 million. Looking at the balance sheet. Investment properties amounted to SEK 66.2 billion, up SEK 3.5 billion versus 12 months previously. Equity amounted to SEK 24.2 billion, up SEK 1.2 billion. And loans or borrowings amounted to SEK 35.7 billion, up SEK 2.4 billion versus 12 months previously. On the next slide, we can see how that translates into key figures. The equity ratio now stands at 35.4%. Leverage is at 53.9%. Worth noting that the dividend that we paid in Q2 affects the LTV by approximately 1.5 percentage points. and the interest cover ratio stands at 2.9x.

We had with these ratios a strong enough balance sheet to finance the acquisition from Castellum with that without exceeding the limits that we've set for ourselves for certain key metrics or key ratios. Over time, leverage shall be brought down. How and when remains to be seen, but we will continue to act in the best interest of both the company and our shareholders, of course. Looking at the EPRA NRV, that stands at SEK 99.66 per share, up 9% versus 12 months previously adjusted for paid dividend. On the next slide, you can see the historic development of EPRA NRV over this long time period since 2009. And would actually still show a growth of -- an average growth of 15% on a yearly basis adjusted for paid dividends. On the next slide, you can see our key financial ratios in the long-term perspective. The graph starts year-end 2011. Equity ratio well above the 30% threshold that we set for ourselves, LTV still before the acquisition, of course, well below the 60% threshold. I think it's also worthwhile noting that although the interest cover ratio has varied a lot over this period, 2.9x, it's also worth remembering that in 2022, 2023, when interest rates went up point of the interest cover ratio of 2.5x, which I think is still at a very healthy level.

Looking at the next slide, you can see the historic development of the net debt to EBITDA, which now stands at 10.7x, a level where we are quite comfortable. Looking at our sources of financing as of end June, we have increased the portion of bond financing slightly over the quarter, now representing 20% of our borrowings. About 1/3 comes from the Danish real mortgage system and a bit less than half of the borrowings from bilateral bank agreements. And it's, I think it's worthwhile repeating that the access to capital on attractive terms is still good, both from the banking system and from the bond market. Look at the structure of our loan portfolio. You can see the details on this slide. The average interest rate, excluding cost for credit agreements is 3.25%, it's a very small change over the quarter. The average fixed interest period is now 2.5 years, and the average loan maturity is 4.9 years. And on the next slide, you can see the development over a 5-year period of the fixed interest period and the loan maturities. And it's no drama in those 2 graphs, I would claim.

And on the next slide, you can see our available funds. That is unutilized credit facilities as of end June plus liquid funds. And we now have access to a bit over SEK 4 billion in unutilized facilities as of end June. And that also, of course, is a good starting point for the second half of the year.

And with that, I hand the word back to you, Ulrika.

Thank you and an update on our investments in progress and a quick overview of one of our newest project and one of our largest project. During the period, we have invested SEK 1.042 billion, and it remains SEK 1.688 billion to invest in approved projects. We continue to expect 6% or a bit above 6% year on cost for new build offices and 7% or a bit above for industrial. It's a good mix of refurbishment and new build in the portfolio. This time, just a short list of projects, you can see more on that topic and investment possibilities in the last report from April.

We have a new project up Vatet 1 for a company in the automotive tech industry just beside the project we have completed for ARM. We invest SEK 82 million and get 7.4% yield on cost, including valuable property and 13% yield, excluding value of property completion in Q1 '27. And the large project at Amphitrite 1, the one in Malmo for Malmo University is running well in accordance with the plan. A bit about 20,000 square meters, 100% pre-let to Malmo University in a 10-year lease, investment SEK 1.130 billion and completion is planned to late Q4 '27. Discussion continues regarding a possible prolonging of the lease to 20 years. And with that, we summarized the quarter again a number of new records, rental income, up 7%.

Operating surplus plus 6%, income from property management, plus 6% and net letting positive, but most important is the list of ongoing discussion is good and more positive levels ahead. Also worth mentioning again that the rent levels continue to develop, especially in the Swedish side.

Net debt-to-EBITDA at 10.7x, and we continue to focus on our earnings in the daily business, even if we from time to time, also make good deals for future growth of our cash flow. And with that, we are open for questions.

[Operator Instructions]

Good morning, and thank you for the presentation. I have a couple of questions, starting off with the SEK 13 billion acquisition. So first, the initial yield is 5%. Where do you see that yield going over the next 2 to 3 years?

Our goal is, of course, to improve that in several ways. So I think it's a good platform to start with. But of course, we shall improve that. But I have no numbers exactly how quick we can make changes. But it's a good platform for the start.

Okay. And when it comes to the vacancy rate in the portfolio of 15%, do you have a view what is the likely normalized vacancy rates over time for that portfolio?

I think that's the same level as the market around 7%, 8% in a better market than today, but around that level.

Okay. And then on LTV, on the ambition to reduce your LTV to 55% over the next 2 years, and you also comment potentially on reducing the divestment. Could you give some flavor on what kind of assets you would be willing to sell? Is it fully developed certain geographies, pocket segments, et cetera?

I think we have several possibilities in that. And what will come first has not been decided yet. First, we wait for the contracts like it to make their improvements and then we can take action after that. But we have possibilities in both different geographical areas and different segments, of course. So it's good. We think it's good that we have several possibilities.

Okay, I see. And what is your view on dividend distribution considering that LTV comes up to quite close to your policy?

We will, of course, take that decision in February in connection with the full year report for 2026. And I think -- I mean, our dividend policy so far has always been to distribute approximately 50% of the income from property management but applying full tax on the income from property management. We will, of course, look at both the cash flow generation capacity, the future outlook, what the valuations actually are at year-end before taking such a decision.

And the final question for me and that is based on the occupancy raised on the signed leases and terminations that you know about today, do you expect the occupancy rate to improve or deteriorate over the next 2 quarters?

I think that we should expect it to be quite flat the coming -- in a shorter perspective, improved during 2027.

Good morning. Just some follow-up questions on the acquisition. So just as it stands today, all things considered, what is your view on the best way to manage the balance sheet going forward?

The best way to manage the balance sheet is to work as we always do, very hard on improving our cash flow and our earnings. That's, of course, the starting point. Then we have, of course, a number of tools in toolbox as we've stated. And as Ulrika already talked about also when it comes to possible divestments and other capital structure measures, which could, of course, be taken if the time is right and the market is right. But I'm mentioning -- sorry?

Yes, you mentioned the portfolio composition. Have you sort of identified any share of the portfolio or a specific segment or something like this that you would consider divesting?

We have several possibilities with products and areas that are interesting at the market today. So -- but no decision is made in that. But it's good to have different kind of possibilities.

Yes. Good. And then just on central admin costs in the quarter. So roughly SEK 5 million is related to transactions, M&A and then so the remaining increase, what should we expect on an annual basis going forward?

You should expect a bit higher than before, we have a bit higher costs on IT, regulatory and, of course, higher levels of technical demands, but not any higher expenditure than we see now.

And maybe one final question on the acquisition. What's the -- I understand you initially have some bridge financing. Could you comment on sort of the initial terms and the structure you expect more long term?

I won't comment in details on the exact terms of the bridge financing. But we've secured bridge financing for the full amount within 18 months term. So we have basically 18 months to put in place a long-term financing which can, of course, take different forms.

Good morning, can you hear me?

Yes.

Okay. I didn't get a notification. So I didn't know that it was my time. My apologies.

So I just want to follow up on the acquisition. You mentioned that you believe that this portfolio yields about the same as Wihlborgs today. But if I look at what you're yielding in -- at least in Sweden, it seems to be a bit above 5%, whereas this portfolio is around 5%. Obviously, there's differences in the occupancy. But when you state that it's about the same in terms of yield, how do you come up with that? Could you sort of give us a little bit more information as to how you view this portfolio versus your own?

The 5% of the portfolio that we -- in the acquisition is -- the 5% is including all admin costs as well. And that is in line with the Swedish portfolio.

So it's including admin and that's the difference basically towards what you used to report yourself?

Yes.

Yes, okay. All right. Good. And then regarding potential divestments, you mentioned that you need to wait obviously, from the Swedish Competition Board in order to sort of finalize the acquisition. But could you consider doing divestments before year-end that are not related to that from the existing portfolio?

We always look at the structure of the portfolio. And so I mean, it's part of the day-to-day work to both look at acquisitions and divestments and trying over time to optimize the composition of our total portfolio. So that cannot be ruled out.

Okay. So basically, the way that we should look at it is that your efforts to lower LTV over time. Obviously, it's going to be a large part of that operational. But in terms of divestments, you could make divestments before year-end for example, in order to achieve this even before you've completed the transaction?

Absolutely possible.

All right. Again, on these assets, I assume that you know these assets quite well. It's been a competitor of you for, I don't know, 20 years. How do you feel the quality of these assets versus the ones you own now? Do you believe that this has been really strong competition versus your tenants? Or do you feel that there are -- the competition in the market is such that this doesn't really move the needle? Or do you think you get clearly a stronger hold on some of these areas compared to what you have today?

I would say that I think the quality is good, very much in line with what we have today. Modern offices, good location, the area for industrial and logistics is a perfect match. So I think that on that side, it's a very competitive. Maybe we have been -- maybe Wihlborgs has been a bit more active in the market and thereby more successful in doing business. So I think that is what we, first of all, will add on to this portfolio.

And we also know that when we have many tenants that have changing needs, we can do this parcel moving tenants around and with a larger volume of possibilities, is a great menu of different things that our tenants can choose from the fitting will be even better. And that is -- we have been very successful in doing these things. So I think this will be great also for our tenants ahead.

Okay. And could you say something about how much of the portfolio that you're acquiring is related to sort of land or projects in terms of size? You mentioned that there are project opportunity in another phrasing is how much is nonyielding other than the vacancy in the buildings in terms of the total portfolio today?

The largest project possibilities is the 2 properties in Lund that was on the map in very good location and have project possibilities. And then there is another number of project possibilities, but more adding on to already existing buildings.

And that's one larger ongoing projects in Malmo

Correct. Logistic project with no tenants today.

Okay. And in Lund, what's the size of that land bank in terms of the projects?

I don't have the square meters on that. But roughly around 10,000 square meters, I would say.

Okay. No, that's fine. My final question is regarding your comments on sort of the activity in the market and net letting. You're stating that you've witnessed increased activity in general from tenants. And obviously, that could be a positive, but I guess it could be a negative as well. So in terms of your net letting for the rest of the year, by stating that you see increased activity, does that mean that you expect net letting to be positive as well? Is it sort of a positive trend? Or do you run the risk of tenants actually terminating to a larger extent as well?

I would say that the number of larger leases that we saw from possible termination that, we have seen in the last years where the volume has been quite high on moving around and having new needs. We have -- I think that has slowed down. So what we see now on higher activity is definitely new leases. So the volume is much better ahead. But also, let's remember that the start of the year was very poor. But now the list of ongoing discussions are much better, both in Sweden and Denmark.

So I'm actually quite positive ahead for signing new leases. But you never know ahead where the market is going, but definitely more activity and really good discussions.

[Operator Instructions]

There are no more questions at this time. So I hand the conference back to the speakers for any written questions and closing comments.

There are no questions coming in via the e-mail function.

So by that, thank you for today, and you're always welcome to come back with questions and...yes...

I wish you all a nice summer.

Welcome to the presentation of Wihlborgs' first 3 months report 2026. Growth, cash flow and core business is our mission. And even if the world gives us some challenges, our region continues to deliver not only [Audio Gap] quarter in 11 years, but I see no new trend in this, just a reminder that a quarter is a short period. Net debt to EBITDA at 10.5x, good access to financing continues, and we have acquired our first premises in Carlsberg Byen in Copenhagen.

And with some figures on that, the rental income was SEK 1.150 billion, a new record, the operating surplus SEK 800 million and in terms of property management SEK 520 million. The result for the period increased to SEK 548 million, corresponding to SEK 1.78 per share and EPRA NRV has increased by 10% to SEK 101.14 per share adjusted for paid dividend. A comparison of the rental income Q1 '25 and Q1 '26, indexation, plus SEK 13 million; acquisition, plus SEK 46 million; currency effect, minus SEK 12 million; additional charges, plus SEK 23 million, and completed projects, new leases and renegotiation plus SEK 35 million. And the net letting was negative with minus SEK 35 million, the first negative quarter after 43 quarters in a row with positive numbers.

New leases of SEK 49 million and terminations of SEK 84 million. Even if every single termination is a loss, the volume of termination as such is close to last year and no drama in that, but the amount of new leases in Q1 are too low to meet that. The year started quite slowly, picked up a bit. But then when the war in the Middle East was a fact, all discussions were pushed forward. Over 50% of the termination was in Denmark, and we know that the market there is quite strong, so I expect that we will see a pickup. We also had SEK 8 million in Sweden from bankruptcies that affected the result with minus SEK 1 million, but terminations had a yearly rental value of SEK 8 million.

Now, in April, things have changed, and I think the list of possibilities and the ongoing discussions actually are quite good. That doesn't mean that things will be easy ahead, and I cannot promise positive net lettings in the coming 4 to 3 quarters, but at least we have a number of good discussions ongoing.

Here are some of the tenants that we have signed during Q1, the defense industry, which, for example, the new and expanded lease with MilDef is a growing sector. And we also see some examples of interesting and growing tech companies like Intermail and the tech hub Hedge in Helsingborg also continues to attract innovative AI companies. Here, we have the net letting in a historical perspective, lettings in green, terminations in light blue and dark blue stacks are the net letting. We don't win every lease opportunity, which is annoying, but the hit rate over time is good, and let's see how we can develop this further on.

And the list of our 10 largest tenants in alphabetic order, strong customers, and they contribute with 90% (sic) [ 9% ] 90% of rental income, 7 out of 10 are governmental tenants and the public sector contributes with 22% of rental income. The rental value as of 1st of April '26 is SEK 5.157 (sic) [ 5.127 ] billion per year, first time over SEK 5 billion, plus 11.6% and rental income, SEK 4.523 billion, plus 10.3%. Strong figures, and this is an effect of acquisitions, indexation, investments and, of course, tenants willing to pay for the right quality.

Looking at the like-for-like figures, the properties we owned a year ago, excluding projects compared with updated figures, we can see that rental value is up 2.2% and rental income is up 1.1%. Like-for-like does not include the large acquisition we did 1st of April '25. As said last report, it's good with the growth also in the like-for-like stock, but to get the growth we aim for, acquisition and investments will continue to be important, especially in times of higher vacancy. Changes in the market value of our properties, we started the year with SEK 64.414 billion in accordance with the external valuation of 100% of our portfolio. We have made acquisitions, which add on SEK 534 million; investments SEK 562 million; divestment, minus SEK 4 million; changes in valuation, plus SEK 19 million and together with currency translations of SEK 117 million, that summarized to a value of SEK 65.642 billion.

Valuation parameters haven't changed since last -- since year-end, and that includes assumed indexation of 1%. So very small changes of valuations that growth comes mainly from investments and the transaction we made in Copenhagen. Here's a long-term trend for portfolio growth from SEK 7 billion to SEK 65.6 billion in 21 years and growth every year without taking in any new equity from our shareholders. These figures, the running yield show how we actually perform in relation to the valuation, so this is not the valuation yield. For the whole portfolio, the occupancy rate is 90%, excluding project and land, and with an operating surplus of SEK 3.356 billion that gives a running yield of 5.5%. Fully let, the portfolio would give around a running yield of 6.3%. Good earnings capacity in relation to the value of the portfolio and good cash flow generation is the foundation also ahead.

The occupancy has improved in some areas and lost a bit in others. What we know is that of the total vacancy, approximately 14% are already signed, but not entered yet and for additional 6% of the vacancy, we have ongoing discussions with possible tenants. So a lot of positive work in that, but we will also add on vacancy from terminations. Additional new build projects will move from the project line to the running portfolio line and possible transaction may also affect vacancy, so no exact guiding ahead. But I expect occupancy numbers for the portfolio to be relative flat next quarter, but with somewhat increased income from the base rent figure. Parking and additional charges may vary.

In the office portfolio, the market value is SEK 51.451 billion with an occupancy rate of 90%, 90% in Malmo, continue with small improvements in Helsingborg to 91%, 89% in Lund and 91% in Copenhagen. The operating surplus from offices summarized to SEK 2.781 billion and a running yield of 5.4%, 6.2% fully let. The logistics production portfolio have a value of SEK 9.315 billion, 92% occupancy in Malmo, 83% in Helsingborg, 95% in Lund and 97% in Copenhagen. In all, 88% occupancy with a running yield of 6.2%, 7.3% fully let. The development of our total portfolio running yield, 5.5% brings stability, not least since the portfolio overall has a high quality and good location. As noticed before, a good increase of the running yield since 2021.

Some sustainability highlights. We have improved from 0% to 35% certified area in our Copenhagen portfolio within 1 year, and there is more to come. We have also new sustainability targets from 1st of January and we will report on a wider spectrum with focus on energy efficiency, carbon dioxide emissions and climate adaptation as well as important social and governance measurement. More on that topic in the report, but I'll show you some figures here. It was a cold start of the year but to be able to compare how we improve our energy use, we also present figures normal year corrected, and of course, also in kilowatt hours per square meters. Here you can see the improvements quarter-by-quarter and year-by-year. We present the carbon dioxide emissions from Scope 1 and 2 in the same way. Here, we have higher emissions in Q1 according to more gas used in Denmark during this period of energy uncertainty in the world. We also compare energy production from solar cells and not at least, we have a new goal till 2020 (sic) [ 2030 ] to replace refrigerants in our cooling systems to more environmental neutral gases, and this work continues.

A catalog of our value and properties in our 4 cities end Q1 '26, 38% of the value is in Malmo, 23% in Helsingborg, 17% in Lund and 22% in Copenhagen. Commuting across the Oresund Strait continues to increase and the entire region benefits from the fact that Sweden and Denmark complement each other's economic cycles. The increased focus on defense and resilience also contributes to investments in the region, not only correlated to industries such as Saab and MilDef, but also due to the fact that 90% of the important food to Sweden passes through our region. That means that Sweden depends on the infrastructure in the region and harbors, highways, railways and of course, the Oresund Bridge must be in good condition and well protected. The region as such benefits from that also in a long-term perspective.

During the first quarter, we have acquired 10,300 square meters office and retail in Caroline Hus in Carlsberg Byen, property value of DKK 370 million and location that attractive both for living and working. A high density close to the city center, interesting mix of older refurbished building and new build, and as we see it, potential for growth rent in the area.

And time for financials. Over to you, Arvid.

Thank you very much, Ulrika, and good morning, everyone. If we look at the income statement for the quarter, Ulrika has touched upon the figures already, but I would like to highlight that the rental income of SEK 1.150 billion is actually a record for the fourth quarter in a row when it comes to rental income in an individual quarter, up 10% versus the same quarter 2025. And as we write in the report, we had a positive one-off effect of SEK 15 million coming from a terminated lease in the Danish portfolio, which was settled with a so-called termination fee. But nevertheless, we had a good growth of 10% of the rental income.

The operating surplus amounted to SEK 800 million, up 9%, and that is despite, as you can imagine, having higher costs for snow removal and for heating during Q1. For those of you living in Sweden, you know that the winter was colder and longer than most winters, not least so here in Southern Sweden. Income from property management amounted to SEK 520 million, which is up 12% versus the same quarter previous year. Value changes in the property portfolio were basically flat, plus SEK 19 million, so no big changes at all. And the underlying assumptions, as Ulrika mentioned, was also basically the same as at year-end. We had positive value changes in our interest rate derivatives portfolio, plus SEK 191 million and in total, a profit for the period of SEK 548 million.

On the next slide, looking at the balance sheet, investment properties versus 12 months previously went up by SEK 6.5 billion and stood at SEK 65.6 billion in total. Is the presentation of the slides working or not?

Not sure. Let's see again.

Let's see, if we can get a signal from somebody if the slides are visible. Looks okay over there.

Equity end of March stood at SEK 24.9 billion, up SEK 1.4 billion versus 12 months previously. And then we've, of course, during that period, paid almost SEK 1 billion in dividends. The borrowings stood at SEK 34.2 billion, up SEK 5 billion versus 12 months previously. And as you remember, we have made acquisitions of approximately SEK 3 billion during that period. And also, we've had a high investment level in our project portfolio.

Moving to the next slide, looking at our key numbers, the equity assets ratio now stands at 36.8%, the LTV has gone up slightly to 52.1% and the interest cover ratio continues to be at a strong level at 2.9x. Looking at per share numbers, the EPRA NRV stands at SEK 101.14 per share, which adjusted for paid dividend is up 10% versus 12 months previously.

Looking at the next slide, the long-term development of EPRA NRV is visible in this graph and the average annual growth still stands at 15% adjusted for dividends, so a strong long-term growth trend in EPRA NRV.

On the next slide, you see the long-term trend for the other financial ratios that we continuously monitor. On the left-hand side, you see the interest cover ratio. And as you remember, it was on extremely high levels during the 0 interest rate period 2019, 2020, 2021. But the 2.9x level where we are currently is well above the long-term goal of or the goal that we have of a minimum of 2.0x. On the right-hand side, you can see the equity assets ratio, well above our threshold of 30%, stands at 36.8% currently. And the loan-to-value is well below our limit of 60% at 52.1%.

On the next slide, you can see our net debt in relation to EBITDA. Also there, we have a long-term stable development; this ratio now stands at 10.5x. And we think it's a very relevant number since it reflects the cash flow that we actually generate in our core business.

On the next slide, you can see our sources of funding as of end March. Half of our funding comes from bilateral bank agreements with Nordic banks, 16% from the bond market, 34% from the Danish real mortgage system. The bond market is, of course, more sensitive to the geopolitical development than the bank market is. But I would still claim that the bond market works in a quite okay way also over the past month or so. The beginning of the year, the bond market was actually quite strong, and we issued some new bonds in January, beginning February on attractive levels, I would claim.

Our ongoing discussions with our banking relationships tells us that the banks are continuously willing to lend money. So a positive sentiment from that front. And the Danish real mortgage system, I would claim has a stable positive development as always.

On the next slide, you can see the structure of our loan portfolio with lots of details. The average interest rate that we're paying currently is 3.21%, 3.24% if you include the cost of committed credit agreements. This means that our marginal cost of debt is actually pretty close to the average cost of debt that we're paying currently.

On the next slide, you can see the development of the fixed interest period, which now stands at 2.6 years and the average loan maturity, which stands at 4.8 years. No drama in the development of these numbers, and we continue to work according to our financial risk management policy.

On the next slide, you can see the development since 2019 of available funds, currently SEK 2.6 billion, which gives us day-to-day flexibility to manage our operations in a good way.

And with that, I hand the word back to you, Ulrika.

Thank you. I'll give you an update on our investments and progress and a quick overview of our largest project.

During Q1, we have invested SEK 562 million, and it remains SEK 1.738 billion to invest in approved projects. We continue to expect yield on cost at 6% or a bit over 6% for new build offices and 7% or a bit above for industrial and a good mix of refurbishment and new build in the portfolio. Let's start with projects soon to be completed. In Malmo and Hyllie, we continue with Blackhornet 1, Vista, an SEK 884 million investment. The mobility hub was completed end '24 and now the first tenants are in place.

One new lease signed in Q1, but we work hard for the next ones, yield on cost 6.2% and approximately 40% pre-let. From 1st of January, the total area of the building are included in Malmo offices best classified as project. And during Q2, we will count the project as completed even if adaptations for tenants will continue, of course.

In Lund, Posthornet Phase 2, a new modern office right beside the Central Station will also be completed in Q2, but moving in continues rest of '26, 10,100 square meters, SEK 448 million, yield on cost 6.5%, a very successful project. In the southern part of Lund, we continue the development of Tomaten; this project is for BPC, will also be completed in Q2 '26, and we invest SEK 79 million, 3,600 square meters and yield on cost 7%. And next to that at Surkalen 1, Note have started to move in and Lund University will move in, in Q4. Well-used land area and long leases in total, 14,500 square meters, investment SEK 260 million and yield on cost 9.2%.

The large project at Amphitrite 1 in Malmo for Malmo University is running well in accordance with plan, a bit above 20,000 square meters for Malmo University at a 10-year lease, investment SEK 1.130 billion and completion is planned to late Q4 '27. Discussion is ongoing regarding a positive -- a possible prolonging of the lease to 20 years, both positive and possible.

At Kranen 7 in Malmo, we will invest approximately SEK 136 million in a preschool for the municipality, 2,900 square meters zoning plan approved and completion is expected to Q3 '27. Public Procurement Act for the contractor is still ongoing.

And at Skrovet 6 in Malmo, we refurbished 11,000 square meters, 50% is pre-let to Cloetta and Media Evolution with completion starting Q3 '26, investment SEK 149 million for a total technical shift in the building and a quick change from a quite closed building for Saab and now open up to being the new entrance to the Dockan area. Good interest from tenants and several ongoing discussions.

A new project in Helsingborg at Muskoten 20, where we invest for our tenant MilDef, a combination of refurbishment of an existing vacant building of 2,400 square meters. We have new build 3,400 square meters and adding on the existing lease of 4,400 square meters. So in total, 10,200 square meters and SEK 97 million investment, including value of the land. Yield on cost, 7.2% and completion in Q3 '27.

And the new project started at Sunnana 12:26. It will be a mix of tenants and a flexible building for smaller industrial logistics. It's a good product where we have very low vacancy in Malmo, pre-let 30% to one tenant, investment SEK 87 million, and completion is planned to Q4 '27.

That was some of the ongoing project and just to touch on future possibilities, just as a reminder that we always look for new opportunities and are ready to start when we think the timing is right. Here are some office possibilities in Malmo in the area of Nyhamnen and Dockan, where we continue to work with the zoning plans, high interest for the future, of course and even if the figures on gross floor area are estimates, the volume are interesting as a part of the other development in the area. And 4 other possibilities in Malmo, industrial at Spannbucklan, research and offices at Medeon site, housing at Kranen 5 and offices at Naboland 3.

In Lund, we continue to develop the land at Brysselkalen in the southern part of Lund. At the Ideon site, we have 3 project possibilities for offices and laboratories, 2 of them on these pictures, Ideontorget and Delta 2. And at Vasterbro, the work with the zoning plan continues.

In Helsingborg and Landskrona, we also have a mix of different possibilities and the main part is in the Logistics and Industrial segment.

And just a summary of Q1 again. Rental income up 10%; operating surplus plus 9%; income from property management plus 12%; negative net letting minus SEK 35 million; net debt to EBITDA at 10.5x. We see good access to financing, and we continue to grow this quarter an acquisition in Carlsberg Byen. And it goes without saying we continue with our focus on cash earnings and our future growth.

And with that, we are open for questions.

[Operator Instructions] The next question comes from Tobias Kaj from Nordea.

First question regarding the EU income in Q1 in Denmark. How large was the annual rental income in that contract? And did that already impact the occupancy rate in Q1? Or will we see the effect first in Q2?

Let me think if I have that number off the top of my head. It relates to Slotsmilen [indiscernible], where ATP have left the building. So it is vacant currently. I don't have the annual rental income off the top of my head, but giving a bit more flavor of what -- the way it works in the Danish market is that when a tenant terminates a lease, they're obliged to restore the premises to the shape the premises were when they moved in, which basically means that when a tenant leaves, you end up in a negotiating position to see how much should they actually pay to restore the premises to the original shape. And it's that type of payment that these SEK 15 million relates to in this quarter.

Okay. I understand. Also regarding the general occupancy rate, I think you previously have said that you expect some improvement during this year, and you write in the report that 14% of the vacancy is already pre-leased. Does that indicate that we should expect roughly a 1 percentage point increase in occupancy rates during the remainder of the year? Or will it take longer time to see that positive effect?

You should not expect that it's too early to say that because we also have terminations, of course. So what I see now is that we will be quite flat until Q2. And then it depends on what will happen with project completions and terminations ahead. But I definitely see as we have also given some notice before that the rental income continues to increase.

Yes. Regarding your interest expenses, how much do you capitalize related to project? And should we expect a significant increase in coming quarters as you expect lots of projects, both in the first quarter and in the second quarter?

SEK 9 million were capitalized in interest in the first quarter this year. And given that the project volume was very high during 2025, and it will still be reasonably high in 2026, but probably not as high, I wouldn't expect that number to go up.

Okay. And one final question. I think you have a swap contract of SEK 1.25 billion with very low interest rates that matures during this year. Is that like one contract in one single quarter? Or will it be a gradual effect in [indiscernible]?

No, it's spread out over Q2, Q3, Q4. It's not one contract.

The next question comes from Lars Norrby from SEB.

I'm looking at that net letting chart, Page 7. Looking at the termination volumes, which is, as I think you pointed out, is quite similar to the past few quarters. It's more an issue of, I guess, the amount of leases signed during the quarters that haven't been high enough to get a positive figure. But just on the termination figures, can you mention, are there any individual contracts of size that you can mention? And if so far, in that case, where geographically?

We have two leases with PostNord, one in Sweden of SEK 2.5 million and one in Denmark of -- I think it was SEK 7 million or something.

SEK 6 million, SEK 7 million.

In Denmark? No, SEK 4 million in Denmark. So in total, SEK 6 million, SEK 7 million. And we have Ahlsell here in Malmo with minus SEK 7 million. And then just a few on minus SEK 2 million. So nothing really large or something like that. But what we see is that the large portion of these smaller leases that always is a great motor in the business during Q1, the cautiousness was very -- everybody was very worried about what will happen, and we really saw that in the discussion. So we missed that volume in the new leases.

On the termination side, Ulrika also mentioned it during the presentation, but we had tenant bankruptcies, a few different, not one big one. But those bankruptcies have an annual rental value affecting the net lettings of between SEK 7 million and SEK 8 million in the quarter. That does not mean that we have credit losses of that amount. But in the net letting figure, it affects the numbers negatively.

One more question. You mentioned here earlier on the call, I think, something along the line that after what happened in the Middle East, lease discussions ongoing were prolonged or delayed. Have you had cases where they've been -- the discussions have actually been terminated without having a signed contract related to what's happened geopolitically?

No, not what I can -- no. And as I mentioned, the list of ongoing discussion have increased significantly since February, March. So April and ahead looks quite decent, I would say.

The next question comes from Fredrik Stensved from ABG Sundal Collier.

I have three questions, if I may. First one is a follow-up to one of the earlier questions about the nonrecurring item in Denmark. Is -- the way I understand the answer, Arvid was that they moved out in Q1, but is this a large material lease in terms of annual rent? And if so, did they contribute fully throughout Q1 and then moved out in late March? I'm just trying to...

They moved out earlier, I think, in Q4 or something. So this was just a negotiation about the termination fee that were decided during Q1.

Okay. Very good. Very clear. Perfect. Second answer, also, I think, pretty straightforward. Arvid, you talked about the bond market and the banking relationships and they were still sort of eager to lend, et cetera. Have you seen any moves in terms of margins with bank discussions during these, call it, 2 months of geopolitical uncertainty and the general uncertainty in the market?

We haven't had any refinancings or new financings. So we don't have any, so to speak, hard evidence of the prices. But my take is that the bank margins during March, April have basically been stable. I have not gotten the impression that they have moved much over the past couple of months.

Very good. Then last question on the project completions that you talked a little bit during the presentation, Ulrika, Blackhornet and Posthornet now completed in Q2. But the way I understand it, at least Blackhornet, probably some move-ins already in Q1 and then some Q2 and then maybe Q3. How should we think about sort of the contribution in Q1, Q2? Will the tenants start paying in Q2 or later? And did they contribute anything to Q1 at all?

Yes, we had contribution during Q1, and we will see contribution during the autumn as well. But in a slower pace, no large significant moment where things suddenly will contribute in a more smooth, I would say.

Okay. Is it similar for Posthornet? Or is that more binary?

Posthornet has the largest contribution during Q2 and -- but also during the autumn continued.

Okay. So a little bit in Q2 and then fully or 70%, at least given the occupancy rate from Q3 and onwards?

Yes. We have something assigned for moving in, in Q4 as well in Posthornet, but most of it is now in Q2.

The next question comes from James Cattell from Green Street.

I had a question on the EPRA CapEx table on Page 25 of the report. I noticed that tenant incentives have increased quite significantly by almost SEK 100 million versus the first quarter last year. And also on the annualized basis was higher than full year '25. Is this going to be the run rate going forward for the whole of '26? Or is this just due to some one-off items?

To be open and frank with you, James, predicting the split of CapEx into these different categories is not extremely easy. So the tenant adaptations or the tenant or what EPRA calls tenant incentives will continue to be an important part of our CapEx because into that category falls a number of measures when we adapt premises to new tenants, and that will continue to be an important part of our ongoing business. But predicting the magnitude of these different parts of our CapEx is still tricky.

[Operator Instructions]

Are there any written questions?

I have seen nothing arriving digitally. Okay.

There are no more phone questions at this time. So I hand the conference back to the speakers for any closing comments.

Okay. Thank you for this. And of course, if you have further questions, you know just reach out to us, and we'll answer. So thank you for today.

Yes. Thank you, everyone, for listening in.

Welcome to the presentation of Wihlborgs' Full Year Report 2025. Another year comes to an end, and we can conclude that despite limited support from the economic climate and with the rental market that has remained a bit slow and cautious, we have once again delivered growth across almost all key metrics.

Vacancy has also increased slightly, but we have higher rental values, higher rental income, higher operating surplus, higher income from property management and property values have all strengthened once again. This marks 20 consecutive years of growth, a track record we are fully committed to continuing. And I claim that our region has never been more positively perceived than it is today, which makes me generally excited about the years to come.

Let's go to our report. We start with a summary of the last quarter, October to December. Rental income up 5%, a new record at SEK 1.111 billion, income from property management, plus 23% and excluding revaluation from joint venture, plus 8%. Net letting positive at SEK 12 million, net debt to EBITDA at 10.4x. We have good access to financing. And as I said many times before, but this still stands. Demand remains for good quality and good locations, and our tenants are willing to pay for that. And we are proud to be able to continue with a project investment that gives continued good potential for growth. The Board proposes a dividend of SEK 3.30 per share.

Looking at the full year '25, rental income up to SEK 4.354 billion, plus 4%. The operating surplus increased also with 4% to SEK 3.107 billion and income from property management increased by 14% to SEK 2.038 billion or 11%, excluding joint venture revaluations. The result for the period amounts to SEK 2.220 billion, corresponding to SEK 7.22 per share, and EPRA NRV has increased by 10% to SEK 99.36 per share adjusted for paid dividend.

A comparison of rental income full year '25 and '24. Indexation gives plus SEK 41 million; acquisition, plus SEK 132 million; currency effect, minus SEK 33 million; additional charges, plus SEK 37 million; and completed projects, new leases and renegotiation, plus SEK 3 million. And here is included higher vacancy as well as higher property tax of approximately SEK 20 million, plus SEK 53 million from new projects and plus SEK 20 million from new leases in the existing portfolio.

And the net letting is positive again, plus SEK 12 million in the quarter, plus SEK 77 million for the full year and, in total, new leases at a yearly value of SEK 399 million signed for the year. For the last -- for being a last quarter, the volume of new leases of SEK 92 million is good and a large amount to have lease commencement during first half of '26 or in the fall for Skrovet 6 in Malmo. 43 quarters in a row with positive net letting, but let's not take anything for granted. The quarter is a short period, but looking over time, I'm very proud of how we have found good opportunities over the past years.

Here are some of the tenants that we have signed during Q4, a combination of headquarters, defense development, industrial and governmental tenants as examples, new tenants, expanding tenants, but also Ericsson with no change in areas and thereby not included in the net letting, but still very important for us. Six additional years, a bit higher rent and a small investment for improvements in the property, approximately SEK 1,650 per square meter.

Here, we have the net letting in a historical perspective, lettings in green terminations in light blue and dark blue stacks are the net letting. We don't win every lease opportunity, which is annoying, but we think the hit rate is quite okay. And the list of our 10 largest tenants in alphabetic order, strong customers, and they contribute with 20% of our rental income. 7 out of 10 are governmental tenants and the public sector contributes with 22% of total rental income.

Rental value as of 1st of January '26 is SEK 4.990 billion per year, plus 7.4%; and rental income, SEK 4.405 billion, plus 6%. Strong figures, and this is an effect from acquisitions, indexations, investments and tenants willing to pay for the right quality. Looking at like-for-like figures, all the properties we owned a year ago, excluding projects compared with updated figures, we can see that rental value is up 2% and rental income is up 0.8%. It's good with the growth also in the like-for-like stock, but to get the growth, we aim for acquisitions and investments will continue to be important, especially in times of higher vacancy. The growth in rental value is supported by indexation of 0.9% in Sweden and approximately 2% in Denmark taking effect this year.

Changes in market value of our properties, we started the year with SEK 59.168 billion accordance with the external valuation of 100% of our portfolio. We have made acquisitions, which add on SEK 2.604 billion; investment, SEK 2.738 billion; divestment, minus SEK 156 million; changes in valuation, plus SEK 859 million; and together with currency translations of minus SEK 799 million, that summarized to a value of SEK 64.414 billion.

Our external appraisers, one in Sweden and one in Denmark, they value 100% of the portfolio as of year-end, no cherry picking. A bit higher valuation yields for Swedish offices market and a touch lower for industrial. The growth come mainly from investments and new leases.

Here's the long-term trend for our portfolio growth from SEK 7 billion to SEK 64 billion in 20 years and growth every year without taking in any new equity from our shareholders. And these figures shows the running yield that shows how we actually perform in relation to the valuation. So not valuation yield. For the whole portfolio, the occupancy rate is 90%, excluding projects and land and with an operating surplus of SEK 3.304 billion, that gives a running yield of 5.5%. In the project volume, now Blackhornet is included with a quite high volume of new areas, but not completed yet.

Fully let, the portfolio would give a running yield of 6.3%. Good earnings capacity in relation to the value of the portfolio and good cash flow generation is the foundation also ahead. Compared to a year ago, the occupancy rate is down 0.3 percentage points, but we see areas which have improved, offices in Helsingborg, for example. And everything points in the direction that rental income will improve further during the year.

In the office portfolio, the market value is SEK 50.401 billion with an occupancy rate of 91%. 91% in Malmo, improved to 90% in Helsingborg, 90% in Lund and 91% in Copenhagen. The operating surplus from offices summarized to SEK 2.731 billion and running yield of 5.4%, 6.2% fully let.

And the demand for logistics and production continues to be good in Malmo, especially with an occupancy of 94% for us, lower occupancy in Helsingborg at 83%, 91% in Lund with a small portfolio and 96% in Copenhagen. 86% (sic) [ 88% ] occupancy rate as a whole with a running yield of 6.2%, a total value of SEK 9.181 billion. And as mentioned before, we continue to see harder competition in the third-party Logistics segment with quick changes in need, and that also means that occupancy can improve quickly when market has new needs.

As mentioned before, I assume that vacancy in the southern parts of Helsingborg will be a bit sticky since the area will go through a makeover and that will take a number of years. But once again, let's remember that even if the vacancy is high, the running yield of 6.3% is decent, especially in location where the market as such continues to be interesting. The development of our total portfolio's running yield, 5.5% brings stability, not least since the portfolio overall has a high quality and good location. And as noted before, a good increase of the running yield since 2021.

And some follow-up on the sustainability metrics. This is some of our overall goals for 2025. We managed to reach over 90% certification in the office portfolio in Sweden, a bit ahead, and we have continued with the rest of the portfolio. Evaluation of suppliers have not reached the 100% goal since there are always a few on the way in, but we will continue to improve. Carbon dioxide emissions from Scope 1 and 2 now at 0.93 kilograms per square meters and energy use 76 kilowatt hours per square meters below the target of 85.

New goals have been set for 2026 and forward, more on that topic in the next report. But also some sustainability highlights from Q4 '25. Our project at Vatet 1 in Lund for our tenant, Arm, is the first project to be certified according to an updated manual Miljobyggnad 4.0 Renovation and reached the highest level goals. And let's remember that every upgrade of the manual makes it more difficult to be certified. The demands increase for every update.

In Malmo, we have installed charging infrastructure for heavy-duty traffic for one of our tenants, and we continue with our energy efficiency improvements. And yes, you can find The Janne Solution among them. So minus 50% at energy use at Syret3, minus 27% at Cylindern in Helsingborg; and minus 10% at Kranen 8 in Malmo, as examples.

A catalog of our value and properties in our 4 cities in '25. 39% of the value in Malmo, 23% in Helsingborg, 17% in Lund and 21% in Copenhagen. The region and especially these 4 cities continue to be of high interest for future growth, both regarding population growth, which will be a challenge in many places and regarding the number of workplaces, which is important for us, supported by Danish infrastructure and a young and well-educated population in Sweden.

And time for financials. Over to you, Arvid.

Thank you very much, Ulrika, and good morning, everyone. Looking at the Q4 income statement. As Ulrika mentioned, rental income during the quarter amounted to SEK 1.111 billion, up 5% and actually a record figure for a single quarter when it comes to rental income. Operating surplus was up 3% to SEK 773 million. And income from property management was actually also a record for a single quarter at SEK 556 million.

However, as Ulrika mentioned, that number was affected by a positive revaluation within one of our JVs of SEK 68 million. So the growth of 23% in income from property management, excluding the JV revaluation was plus 8%, which, in my opinion, is also actually quite a good figure. We had positive value changes in the quarter of SEK 444 million and in total, a profit for the period of SEK 850 million.

On the next slide, you have the balance sheet as of year-end 2025. Property value of SEK 64.4 billion, up SEK 5.2 billion versus 12 months previously. Equity stood at SEK 24.3 billion, up SEK 1.2 billion versus the year previously, despite paying almost SEK 1 billion in dividend during 2025. And borrowings increased by SEK 3.2 billion to SEK 33.2 billion in total.

Looking at some key figures relating to the balance sheet and the P&L. The equity assets ratio stands at 36.9%, slightly down versus the previous year, and the LTV stands at 51.6%. I think you should bear in mind, though, looking at those 2 numbers that during 2025, we invested more than we have ever done in projects, SEK 2.7 billion. And we also actually concluded the largest single acquisition that we've ever done with a property value of SEK 2.4 billion. That is, of course, a way for us to continue to build for growth. And bearing that in mind, we are quite comfortable with those financial metrics. We're also happy to see that the interest cover ratio is now gradually strengthening and stands at a good 2.9x.

The EPRA NRV as of year-end is at SEK 99.36 per share, up 10% adjusted for the paid dividend during the year. The historic development of the EPRA NRV, you can see on this slide. And in the long-term perspective, since 2009, the annual average growth in EPRA NRV actually is at 15% adjusted for paid dividends.

On the next slide, you can see the long-term development of the financial metrics, equity ratio, LTV as well as interest cover ratio. And as I stated before, in relation to the targets we've set for ourselves, we are at comfortable levels. And particularly, I would like to stress that the interest cover ratio is improving and at 2.9x. That is a good reflection of our ability to generate a good cash flow.

On the next slide, the earnings relative to borrowings or net debt to EBITDA now stands at 10.4x. We are comfortable with the ratio. It has gone up slightly during the year, basically due to, as I've stated before, high investments and debt financing of the acquisition made during 2025.

On the next slide, you can see the sources of financing, total borrowings of SEK 33.2 billion. Half of it comes from bilateral bank agreements with Nordic banks, 33% from the Danish real mortgage system and 17% from the bond market. Nordic banks are still very much willing to lend and the terms are probably unchanged over the past few months, but access to financing from the banking system, I would say, is good. The bond market is also both active and attractive. We have, over the past few weeks, issued a 3-year bond under our own MTN program at a margin of 98 basis points and a 4-year bond at a margin of 117 basis points. And for us, those are competitive levels.

Looking at the structure of our loan portfolio, you can see the details on this slide. The average interest rate stands at 3.25%. That becomes 3.29% if you include costs for unutilized credit facilities. With STIBOR at basically 2.0 and a margin of -- an average margin in our loan portfolio of a touch above 100 basis points, you could see that the loan portfolio is pretty much -- we're paying what the current market rate actually is or pretty close to it. We have an average fixed interest period of 2.7 years and an average loan maturity of 4.7 years in the loan portfolio as of year-end 2025.

And on the next slide, you can see the historic development over the past 5 years of the fixed interest period and the loan maturity and there are no dramatic changes in the development of those numbers over the past few quarters.

Lastly, on the number crunching slides, we can look at available funds, that is unutilized credit facilities plus liquid funds as of year-end, which stands at SEK 3.2 billion. And that gives us a good flexibility to seize potential opportunities in the market. And you can also put into perspective, the SEK 3.2 billion is that we have bond maturities in Q1 of approximately SEK 1.2 billion, but we've also issued bonds amounting to approximately SEK 1 billion since year-end.

So with that, I'll hand the word back to you, Ulrika.

Thank you. And I'll give you an update on our investments in progress and a quick overview of our largest project. During '25, we have invested SEK 2.738 billion. It's still a record, and it remains SEK 2.144 billion to invest in approved projects, highest investment level ever in our history, and this makes us prepared for coming years. A reasonable yield on cost with 6% or a bit over 6% for new build offices and 7% or a bit above that for industrial and a good mix of refurbishment and new build in the portfolio.

In Copenhagen, we are about to complete our project at Ejby Industrivej 41 for Per Aarsleff. In the beginning, we planned this project for a multi-tenant transformation, but with a 15-year lease with Per Aarsleff, it has been turned into a single-tenant building. 24,000 square meters, investment SEK 231 million and a yield on cost a bit above 6%. Completion now in Q1 '26.

The large project of Amphitrite 1 in Malmo, for Malmo University is running well in accordance with plan. A bit above 20,000 square meters for Malmo University in a 10-year lease, investment SEK 1.130 billion and completion is planned to late Q4 '27.

In Malmo, in Hyllie, we continue with Blackhornet 1 VISTA. SEK 884 million investment, the mobility hub has already been completed since a year ago, and the offices will be completed from now and during 2026. Yield on cost, 6.2% and approximately 40% pre-let. The attractiveness of the product shows clearly now when tenants are starting to move in, and we work hard at the coming leases. From 1st of January, the total areas in the building are included in Malmo offices as classified as projects since the areas are not ready for moving in yet. Still too much raw concrete, but completion is ongoing.

Last Friday, we opened Borshuset 1 in Malmo after a large refurbishment. It's an almost iconic building right beside the train station, 6,000 square meters offices, restaurant and co-working and top rents in the Malmo perspective. Completion now in Q1 '26 and moving in will continue during '26. Pre-let, 95%.

At Kranen 7 in Malmo, we will invest approximately SEK 136 million in a preschool for the municipality, 2,900 square meters zoning plan approved and completion is expected to Q3 '27. Public procurement acts for the contractor is ongoing.

And at Skrovet 6 in Malmo, we refurbished 11,000 square meters, 50% pre-let to Cloetta and Media Evolution with completion start in Q3 '26. So a quick refurbishment. Investment, SEK 149 million for a total technical shift in the building and a quick change from the quite closed building, which was the result from the SAAB, the former tenant, and now open up to be a new entrant to the whole Dockan area.

In Lund, we are building a new modern office right beside the Central Station, Posthornet 1, phase 2. 10,100 square meters, yield on cost, 6.5% and completion starts in Q2 '26. Pre-let, 70%, a very successful project. In the southern part of Lund, we continue the development of Tomaten. This project is for BPC, completion in Q2 '26 and investment SEK 79 million, 3,600 square meters and the yield on cost 7%.

And next to that, at former Stora Raby 32:22, now named as Surkalen 1. We have been able to improve since the project started. Tenants will be both Note and Lund University. So well-used land area and long leases in total. 14,500 square meters completion in Q2 and Q4 '26. investment SEK 260 million and yield on cost 9.2%.

In Horsholm, Copenhagen, we have invested for a new school for NGG. 25 years lease, 11,600 square meters and investment SEK 390 million. Completion now in January. And at Girostroget in Hoje Taastrup, refurbishment for Novo continues. 62,000 square meters, our investment is limited to SEK 423 million and completion is expected now in Q1 '26, but Novo pays rent also during refurbishment period.

That was some of the ongoing projects and just a touch of possible future projects. There are 4 possible projects in the Nyhamnen area in Malmo. We own the land for Kranen 15, Slagthuset and Polstjarnan 1 and 2. Zoning plan are ongoing, and we actually see some progress. And some more possibilities in Malmo, both the industrial at Spannbucklan, for example, housing at Kranen 5 and offices at Naboland, zoning plan approved for Spannbucklan and Naboland.

In Lund, we continue the work in southern part at Hasslanda, where we bought Brysselkalen '25 -- we bought it 2025 from Granitor, approximately 50,000 square meters gross floor area. And at the Ideon area, we can continue with projects both at Ideontorget and Delta 2, and we also have more building rights at the eastern side of the highway. At Vasterbro in the western part of Lund, it will be mostly housing and one way for us is to use these building rights as a trade for other possibilities. And in Helsingborg, we can add on areas for offices at Polisen and several industrial and logistic possibilities, both as fill-in and stand-alone projects for us to be ready for different kind of times and tenants, and I think we have very good opportunities.

So let's summarize Q4 once again, rental income up 5% income from property management, plus 23% and excluding revaluation from joint venture, plus 8%. Net letting positive at SEK 12 million, net debt to EBITDA at 10.4x. So we see continuously good access to financing, and the Board proposes a dividend of SEK 3.30 per share. And it goes without saying, we will continue with our focus on cash earnings and our future growth.

With that, we are open for questions.

[Operator Instructions] The next question comes from Erik Granstrom from DNB Carnegie.

I had a few questions following the report. I'm wondering if you could perhaps talk a little bit about your outlook for the rental market in 2026, how it's started so far? And where do you see vacancy rates moving, given what you know in terms of project completions and so on?

Erik, I think the year started quite slow. January was not too exciting. But after that, things have started moving on and good discussions are ongoing. And we have quite strong rental income growth from already signed leases coming in during 2026. So I think there's many -- quite many positive signals ahead, but it took some weeks in the early year before things started to move along.

As said many times before, high quality is in very -- in everybody's focus, and we have that in our portfolio. So confident about the future. But a little help from economic growth, of course, looking forward to see that. Would you continue?

No, I just want to comment also on that tenants are willing to pay for quality and location. And it is not a new trend in this quarter. We've seen it over the past few years. But we continue to see that there is a willingness to pay for good location and good quality in the premises. And you can see that also in that the top market rents in our markets are increasing, not dramatically, but a little bit.

Okay. And given the project completions that you have now in the first half of '26, do you think that those will improve the overall vacancy or vice versa? I'm thinking about the fact that Blackhornet will be completed in Q2 and carries a little bit higher vacancy than the rest of the project portfolio to be completed.

Yes. So from now, from this report, Blackhornet is -- the areas are included in the project volume. So they are completed into a very raw standard. So that can, of course, affect the figures, but the rental income will continue to increase. And you never know what happens ahead. I mean it's -- our main focus is to have a good growth in the cash flow. And of course, I'm very happy of how we have been able to be quick on the changes for Skrovet 6, for example. We will have 10 months of vacant 100%. But after that, we have signed leases and they move in from 50%.

So 10 months for total refurbishment, and we have done this kind of quite quick shift in quite high volumes in the last years. So that is a good thing. And I also think that Blackhornet now when they're moving in have started, and you can see the quality in the areas. That will continue to help the new leases come in place in that area as well.

But I think -- if I may add something. Looking at occupancy, Q4 versus Q3, it was down by, I think it was 0.2%. So if we go into decimals, so a slight decrease, but nothing dramatic. Given our projects being completed and given the rental agreements that we've signed, it's fair to assume that, that would have a positive effect on occupancy during the coming few quarters.

On the negative side, you have when Blackhornet is completed, that is -- there's still too high vacancy for our liking in that property, of course. But -- and exactly the timing of those effects over the coming couple of few quarters is a bit tricky to say. But I think the net effect should not be significant, but we see a potential for a slight improvement in the occupancy rate.

Okay. And then perhaps switching over to investment opportunities for 2026. You mentioned, and we can see that in the numbers, SEK 2.7 billion invested in projects and the portfolio. What's your outlook for 2026? Because if I look at what's left to be invested in your project portfolio, it stands at around SEK 2 billion now, and it was about SEK 3 billion a year ago. So I was just wondering how you view the pace in terms of investments and the amount for 2026, if you can give us some color on what you're planning?

2026 will not be a new record year, is my estimate, but we will continue with a good pace also during '26. I can't give an exact figure, but around -- not as high as 2025. But of course, we are always looking for new investment possibilities. And exactly when the timing is right for that.

We have the portfolio, so that's good. I think we have good preparation, both for offices and industrial, not at least. Lund is very interesting. Maybe we will see something more in Landskrona adding on to this, and also industrial in Malmo is interesting. So we have things going on for the 2027 as well. But for -- at the moment, the building for Amphitrite for Malmo University will be our largest project, of course. And that will go on until end '27.

Okay. And then my final question regards the property valuations in Q4 and for the full year, you mentioned that 100% is externally evaluated. Could you say something about what -- in terms of CPI and indexation, what is assumed for 2027? The effect on '26 is already known, but what's now assumed for '27 and on? And also in terms of valuation yields, I do know that you do not report that, but you mentioned some changes. But overall, what -- do you see any major shift in yield requirements in '25 versus '24?

We commented on the slight changes in the valuation yields. And as usual, we will not give exact figures for the full portfolio with the same logic that we've had before that it's one aspect out of many to be judged in combination of many different assumptions. Regarding the CPI assumptions in the valuations for 2027 and onwards, the assumption is 2%. But again, I would like to stress that you cannot look at 1 or even 2 parameters alone in the assumptions in the property valuations. You have to look at all the variables in order to be able to make up your mind if something is reasonable or not. And we are comfortable that our external appraisers are doing a reasonable judgment when it comes to the balance between different parameters in the model.

The next question comes from Oscar Lindquist from ABG Sundal Collier.

Yes. So a couple of questions from me. You mentioned on new lettings that you expect some contribution from Q2, Q3 this year. I was wondering on terminations, is there anything you can highlight here? Did you have any larger terminations? And what could we expect in terms of impact in the coming quarters?

We have -- I mean the largest termination we had, SAAB, as we have reported on before, that was from now on from 1st of January this year. We have a few terminations that starts, I think, 1st of January '27, but they are quite -- I mean for the total volume, it's SEK 12 million and SEK 12 million, something like that. So not as large as SAAB were. And I mean we also have a year to work with that, especially in the industrial portfolio, we have good potentials to find new solutions for that. So not at any larger expense, I would say.

Okay. And I also believe that WSP has signed a lease with Vasakronan in Malmo. Has that termination come through in your numbers this quarter? Or is it expected in Q1? Or can you say anything about that?

No. We have that message in December. So that is part of report for 2025. And they are one of the tenants that will move.

I believe that contract will be terminated in Q2 or something. So it's not the full -- they will not pay rent for the full year 2026.

Okay. So a bit earlier then. I think that is one of the lease.

Yes. And then you have -- on financials, you have SEK 2 billion in swaps maturing in '26 average rate of 1.53%. You say that -- or you mentioned that you're currently paying around market terms. What sort of effect could we expect from swaps maturing and net of new financing?

Those swaps expiring in 2026, I would expect that we have -- I mean it will have a slight negative effect on the average interest rate for the group. But we actually, of those swaps have examples of swaps being both in the money and out of the money. So the effect, it's not that all those swaps are on extremely attractive levels. But it will have a slight negative effect on the average interest rate. And at the same time, we still have both bonds and we have bank agreements where the margin we're paying is slightly above where the market is currently. So I don't expect the net effect on the group's average interest cost -- the effect will not be very large.

The next question comes from Lars Norrby from SEB.

Talking about expansion and record CapEx in '25. And as far as I understand it, you're not expecting the same kind of level in '26, not fully SEK 2.7 billion. Now how about acquisitions? I think you did some net SEK 2.5 billion in '25. In '26, can you handle the same kind of volume with your existing balance sheet if something comes up? And are you looking at something of any size at the moment?

If I start with the financial capacity, I think that, as I mentioned, our access to liquidity, we feel is good, and we're comfortable with the financial metrics of the LTV, the equity ratio, the net debt to EBITDA that we have. As stated before, if an attractive acquisition opportunity of -- well, significantly large would come up, we have the tool or the mandate from the AGM to issue equity. We have never used that tool, and we've had it over all the years. But it is a tool in the toolbox for -- if the right opportunity would come up.

And without giving any prognosis about what will happen, as said many times before, we look into all kind of possibilities, both small, which add on things piece by piece, but of course, also possibilities with larger portfolios. But it's really important that we think that we can add on some value to that. It has to be -- I mean I think it's good for us that we are a bit picky when we choose things. It should both be the right quality or possibilities and the right price, of course. But of course, we see possibilities. I mean Copenhagen continues to be interesting. And also on the Swedish side, there is possibilities. But you can never say ahead.

If you're looking at Copenhagen, what type of properties and what kind of yield level are you looking at? Is it similar to what you have in the portfolio right now, meaning higher yields than in Central Copenhagen?

Yes. We don't want to go too low on the earnings. Of course, they are important for us. But we think there is some possibilities in a bit of a better location than we are today so that we can transform a bit, but still get a decent yield for us. So that is mostly the kind of things that might be of interest for us.

Just to wrap it up from my side, for example, if Castellum would be willing to sell some of their properties in more central locations, you wouldn't be looking at them. Is that correct?

I don't think we will be the one that are prepared to pay the price that they are expecting.

The next question comes from John Vuong from Van Lanschot Kempen.

You mentioned something about rental income growth for signed leases. Are you referring to capital reversion? And if so, what reversion potential are you seeing in your portfolio?

I think if you talk about -- I mean reversion potential, generally speaking, as has basically been the case over many years, the rents that we have in our rental contracts today are fairly close to where the market rents are. And our markets have rarely, if ever, seen any huge reversion potential that is being able to sign or to renegotiate rents at completely different levels.

But when I mentioned higher rental income, I was pointing at leases that we have signed, but where tenants haven't moved in yet, but they will move in during the year. So that will give some extra income, of course.

Okay. That's clear. And then just looking at your Malmo office portfolio, screens that the vacancy has increased by 80 bps over the quarter. Is this an issue of timing given that letting? Or have new leases been skewed to other regions?

I would say that looking at Malmo offices in the quarter, I mean that has, of course, been affected by SAAB moving out as of this past year-end. So there you would have -- and that was actually 4 leases out of 3 were terminated, if I remember correctly. And that was actually a significant chunk. So the Malmo office occupancy effect would mainly be driven by SAAB in this quarterly report.

And we have also added on areas from Borshuset. So Borshuset is completed, but the tenants haven't moved in yet. They will continue to move in until August. So that is vacant in the economic terms at the moment, that the tenants are eager to move in.

Okay. And then on the leases, what's the percentage point impact on your occupancy? And maybe just looking at the number overall, is it skewed to any specific submarket within Malmo or say, building age?

No. I mean nothing different from what we tried to communicate earlier that there's still a good demand for good quality, good location. Predominantly, our office portfolio is good quality, good location with only a few exceptions. So there's no real change in that picture, I would say.

And the decision from SAAB to move to Lund, to a new premises there, was they wanted to combine both all the offices area and their development area, which also is a part of industrial classification in that. And Lund municipality could arrange that kind of area where they were allowed to have both engineers and also this experimental industrial things going on at the same place. And so that was the reason why they moved to Lund, and we have seen very good effects from that in the Lund areas affecting all the things we own at the Lund area, not at least.

So for the region, that decision from SAAB has been a boost, I think, actually. And I'm also very satisfied with the solution that we have found with Skrovet 6, where SAAB had their largest leases before. So we have new tenants there from starting with 1st of September and adding on also from 1st of October with a totally refurbished property. So I think that solution will also be good for the Dockan area in Malmo. But of course, the timing for that, it gives us some vacancy at the moment.

The next question comes from Eleanor Frew from Barclays.

A couple of questions. One is probably a slight follow-up. Can you calculate the net letting excluding leases on new developments or just including the completed stock? And can you give some color on how you see that trending if so?

I'll have to check that number because I don't have that number off the top of my head, the net letting excluding projects.

We have mentioned it before, but not the full year figure. But we have been positive in the net letting for the existing portfolio before. But let's check upon that because -- and I don't see if we had some new leases in new areas in Q4, but I -- let's come back to that.

Great. And then is there a reason sort of high vacancy on Blackhornet? It stands out a bit given the pre-letting and your other projects? Or more broadly, how is the momentum going in the pre-letting discussions?

Good discussions, high interest, but not in the pace that we are aiming for. So good -- I mean it's the best product you can find, but the decisiveness must be there from our tenants. I think what we see in a bit of a cautious market is when you have a high volume with very good quality, you don't need to take the decision now, you can wait because there's more to choose. It's not this level, so you can choose another level. So we don't really see the tempo in that yet. But patience is something you need.

Getting back to net lettings, excluding new developments. In Q4, it was still positive, also excluding leases and new developments. It will take a bit more time to look at the full year, but Q4 was still positive.

The next question comes from James Cattell from Green Street.

Just had a question on the new EPRA CapEx table on Page 25. Thank you for including that. I noticed TIs increased from SEK 499 million to SEK 802 million. Was this just a temporary increase due to a difficult letting market? Or do you expect this to be the run rate going forward?

Could you please repeat which figure you're relating to? It was Page 25, right?

Can you hear me?

Yes, yes.

I have some difficulties in my line. Can you hear my question?

Well, you referred to a number on Page 25 in the report, and I was just uncertain which number. So if you could repeat that and we'll see if we can answer.

On the EPRA CapEx table, the number for tenant incentives, it increased from SEK 499 million to SEK 802 million. Yes. I was just wondering is this increase due to the difficult letting market? Or is this what the rate you expect to be going forward?

To be frank, it's actually the first time that we have calculated this number according to the EPRA definition of capital expenditure. And we've spent some time together with the EPRA team defining these different -- well, the sums, meaning that I'm actually a bit uncertain when it comes to how to project how the different parts of the sum will develop over time. So I'm not quite sure that I, off the top of my head can answer your question about how that will develop going forward.

Okay. And do you have any idea of the split between rent-free and capital contributions on that?

I mean generally, you could say that our market is characterized by few tenant incentives and few and short rent-free periods. So I mean we basically come from a market where tenant incentives have been very, very marginal. And so we don't expect that to develop in any dramatic way.

Okay. And do you have any guidance on what caused the increase in the joint venture property values in the fourth quarter?

Well, I mean property valuations are what they are and always very tricky to predict. We would not expect that, that type of property valuation -- property revaluations in our joint ventures will come on a regular basis, but property valuations are hard to predict.

There are no more questions at this time. So I hand the conference back to the speakers for any written questions and closing comments.

Thank you. So let's see. Do we have any written questions?

We have received no e-mail -- questions via e-mail as I can find.

Okay. But you're always welcome with further questions any time. So by that, thank you for today, and have a nice day.

Thank you very much.

Welcome to the presentation of Wihlborgs' 9-Month Report 2025. There's an old saying when you think you can see the light at the end of the tunnel, beware, it could be an oncoming train. We never know what will happen ahead, and we try to be prepared for whatever we can think of. But let us be clear, we see some glimmer here and there, maybe not the full ray of light yet, but nice glitters in the horizon. It's a very busy report week for all of you, so I will try to be short and precise. That means standard procedure about the last results of our continued growth and some new records, but also some figures regarding loyalty among our customers, how we can calculate retention rates and not at least our view on future occupancy.

We start with a summary of the quarter, July to September. Rental income up 6%, a new record at SEK 1.101 billion; income from property management, plus 11%; net letting positive at SEK 6 million; net EBIT to EBITDA at 10.3x, good access to financing. And as said many times before, but this still stands, demand remains for good quality in good location, and we are proud to be able to continue with the project investment that gives continued good potential for growth.

Looking at the whole period, first 9 months, rental income up to SEK 3.243 billion, plus 4%. The operating surplus increased to SEK 2.334 billion and income from property management increased by 12% to SEK 1.482 billion. The result for the period amounts to SEK 1.370 billion, corresponding to SEK 4.46 per share and EPRA NRV has increased by 10% to SEK 96.23 per share adjusted for paid dividend.

A comparison of the rental income first 9 months '24 and first 9 months '25. Indexation gives plus SEK 30 million; acquisition, plus SEK 90 million; currency effect, minus SEK 21 million; additional charges, plus SEK 21 million; and completed projects, new leases and renegotiation plus SEK 8 million. And here is also a new higher property tax of approximately SEK 15 million included. So higher vacancy today than a year ago, but small improvement since last report and during 2026, the improvement from new leases will show. And the streak of positive net letting continues, plus SEK 6 million in the quarter, plus SEK 65 million for the period and in total, new leases at a yearly value of SEK 300 million signed in the period.

For the third quarter, the volume of new leases of SEK 66 million is good. And maybe I expected the net letting to be a bit better than SEK 6 million, but we got a late termination of SEK 16 million from a tenant who I'm not sure if they really want to move or just renegotiate. Discussions are ongoing, but the total termination is registered. So a possible upside ahead, 42 quarters in a row with positive net letting. Here are some of the tenants that we have signed during Q3, a combination of expanding tenants and new tenants from many industries, health care, insurance, biomaterials and a company that manufactures equipment for land-based fish farms as examples.

And here, we have the net letting in a historical perspective, lettings in green, termination in light blue and dark blue stacks are the net letting. And as mentioned, quite high volume of new leases for being a third quarter. And the list of our 10 largest tenants in alphabetic order, strong customers, and they contribute with 20% of our rental income. 7 out of 10 are governmental tenants and the public sector contributes with 23% of total rental income. Rental value as of 1st of October is SEK 4.889 billion per year, plus 7.2% and rental income, SEK 4.379 billion, plus 4.6%. Effects from acquisition, indexation and higher willingness to pay for the right quality.

Looking at like-for-like figures, all the properties we owned a year ago, excluding projects compared with updated figures, we can see that rental value is up 2.4% and rental income is down 0.8%. The growth in the rental market is supported by indexation of 1.6% in Sweden and approximately 1% in Denmark last year. Indexation ahead in Denmark expects to be a bit higher, and that will be reflected in the rental levels for 2026. I think the September number was 2.3% or something.

Lower rental income in like-for-like is an effect of higher vacancy than a year ago. And at least, it's encouraging to see that vacancy appears to have bottomed out in several areas. More on that topic later. Changes in the market value of our properties. We started the year with SEK 59.168 billion in accordance with the external valuation of 100% of our portfolio. We have made acquisition, which adds on SEK 2.552 billion; in investment, SEK 1.911 billion; divestment, minus SEK 114 million; changes in valuation, plus SEK 450 million. And together with currency translations of minus SEK 500 million, that summarizes to a value of SEK 63.457 billion. The valuation this quarter have no changes in valuation yields, indexation or other underlying parameters. Expectation ahead is more likely to be positive, if I may guess.

These figures, the running yield show how we actually perform in relation to the valuation, so not the valuation yield. For the whole portfolio, the occupancy rate is 90%, excluding projects and land and with an operating surplus of SEK 3.326 billion, that gives a running yield of 5.6%. Fully let, the portfolio would give a running yield of 6.4%. Good earnings capacity in relation to the value of the portfolio and good cash flow generation is the foundation also ahead. Occupancy is slightly up looking at the decimals since the last quarter and at least that is in the right direction.

In the office portfolio, the market value is SEK 50.394 billion with an occupancy rate of 91%, 92% in Malmö, improved to 90% in Helsingborg, 90% in Lund and 92% in Copenhagen. The improvement has started and will be clearer during 2026. Operating surplus from offices summarized to SEK 2.755 billion and running yield of 5.5%, 6.2% fully let. The demand for logistics and production continues to be good in Malmö with an occupancy of 93%, lower occupancy in Helsingborg at 83%, 91% in Lund with a small portfolio and 96% in Copenhagen. 87% occupancy rate as a whole with a running yield of 6.4%, 7.5% fully let at a total value of SEK 8.988 billion.

As mentioned before, we continue to see harder competition in the third-party Logistics segment with very quick changes in needs. That also means that occupancy can improve quickly when the market changes. But I assume that vacancy in the southern parts of Helsingborg will be a bit sticky since the area will go through a makeover that would take a number of years. But as mentioned before, still a decent running yield of 6.4% even with the high vacancy and the market as such continues to be interesting. The development of our total portfolio running yield, 5.6% brings stability, not least since the portfolio overall has a high quality and good location. As noticed before, a high increase of the running yield since 2021.

Some sustainability highlights from Q3. We have been appointed as Global Sector Leader by GRESB, completed a battery storage in Lund and actually one in Helsingborg as well. We have signed more sustainable -- sustainability-linked loans, also including Scope 3 carbon dioxide performance, and we continue to reduce our energy consumption. As a new example, we have reduced the electricity used for heating and cooling by 50% at Ideon Gateway in Lund, including both offices and hotel. New cooling technology and of course, the Janne solution is the answer.

And something about what our customers think about us. Our latest customer satisfaction index from now in September shows an index of 79 and a loyalty score of 82, very high numbers. Tenants are especially happy with our personal service with 88% satisfaction, our competence scoring 86 and accessibility score 85. Let me just say that I totally agree with our customers. I'm also very satisfied with my competent and service-minded colleagues. I give them 100 out of 100. A catalog of our value and properties in our 4 cities in Q3, 39% of the value in Malmö, 23% in Helsingborg, 17% in Lund and 20% in Copenhagen. The region and especially these 4 cities continues to be of high interest for future growth, both in population growth forecast, which will otherwise be a challenge in many places and in a number of new workplaces. And time for financials. Over to you, Arvid.

Thank you very much, Ulrika. Looking at the income statement for the third quarter isolated. Are we on the right slide? There we are. Thanks. Rental income grew by 6% to SEK 1.101 billion, and operating surplus increased by 4% to SEK 790 million. There are a couple of things to bear in mind looking at those 2 numbers. First of all, we've been through a new property taxation, and we got the new taxation values this summer. The taxation values are higher, which means that the property tax also is higher.

The property tax -- the new property tax is applicable from 1st of January. So we have, you could say, a catch-up effect. So we -- the changes for all 3 quarters are accounted for in the third quarter numbers. That means that on the rental income line, as Ulrika mentioned, that has been affected with plus SEK 15 million from increased property tax, and on the operating cost side, our operating surplus has been affected with minus SEK 20 million from the increased property tax for the first 3 quarters during this year. So the ongoing -- or the future effect of the increased property tax will be smaller on a quarterly basis than you can see in the Q3 numbers.

It's also important to bear in mind that on the rental income line, we've had a negative effect from currencies of minus SEK 7 million, and that same currency effect on the operating surplus line has been minus SEK 5 million. The income from property management amounted to SEK 495 million. We've had a small positive impact there from FX since we borrow a lot in Danish kroner as well. Income from property management up 11% versus the same quarter in 2024. We had positive value changes in the quarter of SEK 103 million. And all in all, a profit for the period of SEK 487 million.

Looking at the balance sheet. The value of our property portfolio is now SEK 63.5 billion, up SEK 5.6 billion versus 12 months previously. Equity stands at SEK 23.5 billion, up SEK 1.2 billion versus 12 months previously. And during that time, we have, as you know, also paid approximately SEK 1 billion in dividends to our shareholders. And our borrowings are SEK 33.2 billion, SEK 3.5 billion higher than 12 months previously. Translating that into key numbers, our equity assets ratio now stands at 36.2%. The LTV has gone down from the last quarter to 52.3% and the interest cover ratio for the period stands at 2.8x. Looking at some per share numbers, I'd just like to highlight the EPRA NRV value at SEK 96.23 per share, which is up 10% adjusted for dividends versus 12 months previously.

On the next slide, you can see the historic development of EPRA NRV, a stable growth over many years and the average annual growth adjusted for dividend is actually 15%. Moving on to the historical development of our financial ratios. The equity assets ratio at 36.2%, as you can see, is well above the 30% that we have set as the minimum level for ourselves and also on decent levels in a long-term historical perspective. The loan-to-value in the perspective of approximately 10 years has come down from around 60% now to 52.3%. And the interest cover ratio, as we've talked about before, has been very variable, especially during the special period when we had almost 0 interest rates when we had an extremely strong interest cover ratio. The rate is now stabilized and 2.8x is a quite decent level to be at.

On the next slide, you see the net debt in relation to EBITDA, also that's in a long-term historical perspective. The ratio stands at 10.3x. It varies with a couple of decimals up and down, but being at 10.3x is a comfortable level for us. Looking at our sources of financing, we still have approximately half of our loans from bilateral bank agreements with Nordic banks, about 1/3 from the Danish rail mortgage system and 17% from the bond market. I would say that the banks are definitely more proactive in their lending efforts than they have been for many years actually. And we do see bank margins gradually moving downwards.

The bond market has also -- as we noted already in the Q2 report, the bond market is a lot stronger than it was a year ago, and we can issue unsecured bonds at quite attractive levels in this market. The structure of our interest rate portfolio, you can see on this slide. The average interest rate is 3.29%, 3.33% if you include costs for unutilized credit facilities. We have both in the past quarter, but also if you look over the coming couple of years, we will have some effects of attractive interest rate swaps expiring, but we also see an effect of the margins that we pay to banks and in the bond market coming down somewhat. So overall, over the coming few quarters, I would expect the average interest rate to be reasonably flat.

And yes, we can move to the next slide and see the development of the fixed interest period, which has gone up a touch in the quarter. It's now 2.7 years. And the average loan maturity in the loan portfolio is 4.8 years. And lastly, from my side, looking at available funds, we have unutilized credit facilities plus liquid funds of SEK 2.9 billion at the end of the third quarter, which gives us, in our view, enough financial flexibility to manage operations and seize opportunities in a good way. With that, I hand the word back to you, Ulrika.

Thank you. And an update on our investment in progress and a quick overview of our largest project. During the period, we have invested SEK 1.911 billion, and it remains SEK 2.730 billion to invest in approved projects, good volume in all our cities, a reasonable yield on cost with 6% or a bit above 6% for new build offices and 7% or a bit above that for industrial and a good mix of refurbishment and new build in the portfolio. Let's start in Copenhagen with our project at Ejby Industrivej 41 in the beginning, planned as and decided for a multi-tenant transformation, but with a 15-year lease with Per Aarsleff turned into a single-tenant building. 24,000 square meters, investment SEK 231 million and yield on cost a bit above 6%. Completion is planned to February 2026.

The large project at Amphitrite 1 in Malmö has started off really well, a bit about 20,000 square meters for Malmö University at a 10-year lease. We have started at site with deconstruction. And during September, we got the building permission from the municipality. Completion is planned to Q4 '27 and procurement will be completed shortly. In Malmö and Hyllie, we continue with Bläckhornet 1 VISTA, an SEK 884 million investment. The mobility hub has already been completed and the office will be completed in Q1 '26 and during '26. Yield on cost, 6.2% and today, approximately 40% pre-let. The best possible product and low competition from new build in the area, but we still need more activity and more decisiveness from our customers before we are satisfied.

An example of top-level refurbishment in Malmö is Börshuset 1. This is an almost iconic building right beside the train station, 6,000 square meters, offices, restaurant and co-working and absolutely top rents in a Malmö perspective. Completion in Q1 '26 and moving in will continue during '26. Pre-let, 95%. At Kranen 7 in Malmö, we will invest approximately SEK 136 million in a preschool for the municipality, 2,900 square meter zoning plan approved and completion is expected to Q3 '27. Public procurement act starts now.

And at Sunnanå 12:54, 17,000 square meter logistics, 100% pre-let in a 15-year lease will be completed 1st of December '25, SEK 280 million investment and yield on cost close to 7%. In Lund, we are building a new modern office right beside the Central Station, Posthornet, phase 2, 10,100 square meter, yield on cost, 6.5% and completion Q2 '26. Pre-let, a bit above 40% today. But together with ongoing discussions, I believe we can reach approximately 70% before year-end, keep our fingers crossed, and very attractive product. And at Vätet 1, also in Lund, we continue with refurbishment and adding on areas for our new tenant, Arm, 5,700 square meters and a 7-year lease, investment SEK 145 million, excluding value of the land, and yield on cost a bit above 10% and over 6.6% yield on cost, including ingoing property value.

In the southern part of Lund, we continue to develop of Tomaten. This product for BPC, completion Q2 '26 and investment SEK 79 million, 3,600 square meters and yield on cost 7%. Next to that, at former Stora Råby 32:22, now named as Surkålen 1, we have been able to improve since the project started. Tenants will be both Note and Lund University. So well-used land area and long leases. In total, 14,500 square meter completion in Q2 for Note and Q4 '26 for Lund University. Investment, SEK 260 million and yield on cost 9.2%. In Hörsholm, Copenhagen, we invest in a new school for NGG, 25-year lease, 11,600 square meter and investment SEK 390 million. Completion in Q1 '26. And at Giroströget in Höje Taastrup, the refurbishment for Novo continues, 62,000 square meters. Our investment is limited to SEK 423 million and completion is expected in Q1 '26, but Novo also pays rent during the refurbishment period.

That was some of the ongoing project and just to touch on future possibilities as a repetition. 4 possible projects in Lund and Helsingborg, where we can develop some 70,000 square meters in the future. Zoning plans are approved for the first few projects and ongoing at Västerbro in Lund and some of the office possibilities in Malmö in the area of Nyhamnen and Dockan. High interest for the future, of course. If you should ask me which projects of these will be the next one, my best guess today is that will be none of these. The Ideon site in Lund is developing very well, and we have building rights there that might be of high interest for the growing defense and tech industries. Early volume studies have started, but nothing I can show yet.

And the summary of Q3 again. Rental income up 6%; income from property management, plus 11%; net letting positive, net debt to EBITDA at 10.3x and good access to financing. And we will continue with a focus on cash earnings and future growth. We have been able to grow every year during different economic environment since 2005. We know how to adapt, find new ways and we will continue with this knowledge and ambition. Growth and cash flow is our passion and the compound interest effect of stable growth is hard to beat from SEK 7 billion to SEK 63.5 billion without any new equity from our shareholders. We have been able to grow, thanks to continued investments. They contribute to upgraded attractiveness and new demands and what comes first, higher rents or investments, have no answer, but these factors have a relation.

Here is a graph showing the market rents for prime offices in Malmö and our quarterly investments during the same period from 2010 to present. The green bars represent our investment and the green line represent rent levels. And finally, a market outlook. Employment growth in our region continues. Office rents show long-term growth. Wihlborgs' project investment increase over time. Tenants on average, stay in the premises for 14 years, which support the strong customer satisfaction score. And if we just take the largest leases we have signed, we have a volume of some SEK 320 million moving in from now until end '27 and during the same period, terminations of some SEK 190 million, a good gap. So possibilities for growth is in sight. And with that, we are open for questions.

[Operator Instructions] The next question comes from Oscar Lindquist from ABG Sundal Collier.

So firstly, on projects. The 2 projects completed in the quarter, Galoppen and Kranen, how much did they contribute in the quarter? And how much should we expect into Q4?

They didn't contribute in the quarter, but will contribute for the full Q4.

And then on the Sunnanå project, from when should we expect contribution from that project?

Also from 1st of October. No, 1st of December, sorry.

1st of December. Okay. And then the Börshuset project was moved to Q1. What's the reasoning?

The tenant will start moving in there. So there's no delay in the project, but it's a difference between when the building is completed and when tenants moving in. So I think the -- we will have a ceremony there in February, but the rent will be started to pay in Q1.

However, everybody does not move in Q1 of the signed leases.

Correct. we have moving in during the whole '26.

Yes. And then if we move over to net letting, you mentioned a late termination of SEK 16 million in the quarter. When do you think you will know if they terminate or extend their contract?

We have calculated as terminated and discussions are ongoing. So I guess now during Q4, there will be a decision if they stay or...

Yes. And if they terminate the impact would be in 9 to 12 months or what's fair to expect there?

Just a minute. 2027, from 1st of January 2027.

Okay. And then -- so if we adjust for that termination, net letting was positive SEK 22 million. What's the mix here between projects and existing properties?

In the quarter, I don't have that figure right away. But I think actually that the existing portfolio contributed very well this year and also in the quarter and also good contribution from all our cities, at least for the 9-month period. So I would say that we see positive signals in all our 4 cities.

Okay. So effectively [indiscernible]

It's -- in the quarter, I would say, without -- I don't have the exact figure either, but I would say that more existing properties than projects during this quarter in the net lettings.

Okay. Perfect. And then if we look on the Bläckhornet project and the Posthornet project, how is discussions going there? You improved the occupancy slightly in Bläckhornet now in the quarter. What's your sort of ambitions closing in on completion?

Our ambition is to improve, of course. It's a very good product. And -- but the volume is quite large. So something tends to take longer time when you can choose of good things in many levels, so to speak. So I can't give a figure when I think it's -- but I think we will continue with the work for letting also during 2026. That's reasonable to think that. But let me also mention that we see a good -- we have signed new leases in [indiscernible] in the same area. And also, actually, we -- the portfolio we bought 1st of April, there was some vacancy at [indiscernible], for example. And that is now, I think, 20%, 30% vacancy, and that is now fully let. So there is definitely activity out there.

And would you say sort of the outlook or discussions with the tenants has improved in the quarter and going into Q4 or...

Yes, I think so. But it depends. One day, you think it's slow and one day you think it's very active. So -- but overall, I would say that there's more positivism out there.

Yes. And then on occupancy, it's essentially flat Q-on-Q, and you sort of alluded or guided to improving occupancy in the second half. Could you quantify what you expect in -- or what we could expect in Q4?

I especially guided on occupancy in offices in Helsingborg, and that have improved 2% during the year. And otherwise, I think that we will continue to have some improvements, but not quick improvements since we also have -- I mean, for example, SAAB will move out the 1st of January '26, and that will take some time before we have entering new tenants there. But a very good example of that is that we have already signed new leases for that building with new tenant moving in a year. So only 9 months for refurbishment. And I...

For part of the building.

Yes, for part of the building. So they take -- yes, [ they'll likely ] take one part of the building, and we also have good discussions for more areas there which might also end up in moving in, yes, I mean, October next year or so. So quite quick period between moving out and new tenants moving in. And not for the total volume, but at a good part of it. So...

The next question comes from Eleanor Frew from Barclays.

Just one question from me. So on rental growth, your chart clearly shows there's prime rental growth, but can you comment on the more secondary assets? What's the rental growth you're seeing there? And is there any negative re-leasing on those poorer-quality assets?

I mean, of course, when you look into the absolutely best location and top rent levels, that is one area. If you just take a small step from that and still good location and good quality, the rent levels continue to develop well. If you go to more poorer area, we have not a large amount of equity there. So I can't really give a good guidance. But of course, it's harder to find higher levels of rents in poorer area. There will be a larger difference there in the market as it is today.

The next question comes from Lars Norrby from SEB.

I'm a bit late into the call. So cut me off if I ask a question that somebody else has already asked. But I have a follow-up on a question I heard, and that was about the occupancy rate, once again, flat in the quarter. Just to be clear, I mean, you have some 6 projects or so being completed in the first quarter of '26 and then you talked about that SAAB moving out. But based on what you know today, has the occupancy rate bottomed out? And at what point in time do you expect it to improve, at what stage in '26?

I would say that for the whole portfolio, I think the vacancy has bottomed out, but we can see for a shorter time or period, higher vacancy in some areas, for example, when SAAB moves out and before we have new tenants in place. But we meet that well with new rental agreements. So yes, I think we have bottomed out and will improve, but the improvement isn't a quick shift. It will take some time. And especially during 2026 and end of 2026, as mentioned before, we have a quite large volume coming in. But also now in Q4, we have good volumes coming in from Galoppen and Sunnanå, for example. So yes. Of course, we want the occupancy to be even higher, but still, it's good to see that we have flattened out and are on the up-going way on the occupancy again.

Second and final question. 2025 has been a year where you're growing through projects, but also through a quite substantial acquisition. Looking ahead, '26, '27, is it very much all about projects? Or are you considering adding additional size of any magnitude through acquisition as well?

I expect that we will see a combination. It's good with the project volume because you can manage that and plan for that. And acquisition is harder to plan for. But we continue to be active and trying to find the best premises for us. And of course, it's an interesting period we're in.

And just a quick follow-up on that. In what geographic area? Are we talking primarily about Copenhagen then? Or is it more likely to be in Sweden?

I think there is interesting things going on both in Sweden and Denmark. So we try to be active on both places, both countries. And as mentioned, I mean, you can't plan for transaction if you want them to be the best things for you. So of course, you can be aggressive and try to buy whatever, but we will continue to be picky on what we want to go into, of course.

Sounds good. I hope you don't buy whatever.

We will not.

The next question comes from Oscar Lindquist from ABG Sundal Collier.

So I just had a follow-up question on the property tax you mentioned weighing on the NOI margin. So the effect in this quarter was SEK 5 million, as I understand it. Is that correct?

On the operating surplus line, yes. A negative effect of SEK 5 million.

Yes. But going forward, will you be able to sort of pass on the full increase in property tax to tenants?

Not 100%, but the very largest part. I mean, we do have some vacancies, for example, and we have a very small proportion, but still a few inclusive contracts, so to speak.

But then significantly lower than the SEK 5 million we saw this quarter?

Yes.

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

Perfect. Thank you. Have we got any written questions as you can...

Let me double check. Not that I can find. No.

No? okay. So of course, you're welcome to come back to us whenever with whatever asked questions. Thank you for this.

Maybe we should conclude. This may actually have been a record quick presentation.

Definitely, 42 minutes. It's our quickest [ version ] , I think. We try to be precise and quick, but that was part of it.

Thank you, everyone, for listening in.

Thank you.