Atrium Ljungberg Stock

Hello, and welcome to Atrium Ljungberg's presentation of Q2 2026. The headline for this report is a stable quarter and a historic transaction. We are reporting a stable second quarter with growth in rental income, net operating income and income from property management. In a market characterized by rising vacancies and interest rates, this is a sign of resilience. A key contributing factor is our project portfolio, where 6 commercial projects and 1 tenant-owned dwelling project have been completed over the past 12 months. Net letting amounted to SEK 15 million during the second quarter and SEK 7 million for the first half of the year.

Of the quarterly figure, SEK 13 million relates to project properties and SEK 2 million to the investment property portfolio. Rental income increased by 6.2% and net operating income by 2.1% despite the nonrecurring cost of SEK 7 million related to electricity charges that had not been invoiced for several years. Income from property management amounted to SEK 320 million, an increase of 1.1%. We continue to generate project returns amounting to SEK 41 million during the quarter and SEK 117 million year-to-date.

Yield requirements remain largely unchanged and have been stable for the past 2 years. Minor adjustments were made to a small number of properties in the management portfolio, resulting a total value decline of 0.1% during the quarter. Investments during the quarter totaled SEK 674 million, and the property value amounted to SEK 62 billion. We currently have ongoing projects, representing investments of SEK 9.2 billion, of which SEK 6.2 billion remains to be invested. Three projects were completed during the quarter, Sickla Central, the Upper Secondary School in Slakthusomradet and Malarterrassen. I will return to these projects shortly.

Our primary focus remains Stockholm, which now accounts for 81% of the total property value. The portfolio consists of 66% offices and 20% retail with an economic letting rate of 86.5%. It should be noted, however, that recently completed projects have entered the management portfolio. In addition, the vacancy rate is measured as of July 1, 2026, and does not include premises that have been leased but not yet occupied. The loan-to-value ratio amounted to 43.8%, stable compared with the previous quarter. We continue to see cautious demand in the wake of the economic slowdown and an uncertain global environment.

The market is becoming increasingly polarized with positive developments in the A segment, while challenges remain in the B and C segments. There are, however, encouraging signs new office supply in Stockholm remains at record low levels. Several major tenant searches events have been announced and employment continues to recover. Household consumption, which represents a significant share of GDP continues to develop positively. Between March and May, we recorded a clear increase in both visitor numbers and sales across our retail destinations.

Performance was strong in March and May, while April was weaker, both in our retail portfolio and in Sweden overall. We are also seeing increased activity in the residential market. Households expect rising housing prices, bidding activities increasing and price development remains positive, although at a somewhat slower pace. The sales rate in our tenant-owned dwelling project increased from 71% to 83% during the quarter.

During the quarter, we signed the largest office leasing transaction in Swedish history, 58,000 square meters on a 15-year lease with an annual rental value of SEK 360 million. The agreement is conditional upon the execution of a land allocation agreement and the development agreement which are expected to be completed during autumn 2027. Consequently, the letting is not yet included in net letting. The buildings are highly efficient with a net operating income margin of approximately 85%. This transaction is expected to generate a significant contribution to both future net operating income and project returns comfortably exceeding our project return target of 20%.

Other examples of lettings during the quarter include stadium outlet, leasing almost 1,300 square meters in Granbystaden, Uppsala; Curoflow Technology, a provider of digital health care platforms, leasing 530 square meters at Slussen; and an additional restaurant and club operator leasing 460 square meters at Malarterrassen. Office tenants account for 53% of contracted annual rent, retail tenants for 20% and culture and education tenants for 10%.

Our 10 largest customers account for 20% of total contracted annual rent. Including Ericsson's new agreement, that figure would increase to 28%, while Ericsson's share of total contracted annual rent would increase from SEK 0.03 to 13%. Of the 20% represented by the 10 largest customers, 11 percentage points related to public sector tenants. The average remaining lease term is close to 5 years. We have only 5 lease contracts exceeding 10,000 square meters, of which 2 are office contracts.

Our retail portfolio benefits from broad diversification, both in terms of tenant categories and the number of operators. Fashion accounts for 13% of retail sales, while grocery stores alcohol, retail and pharmacies together account for 40% of total turnover in our shopping centers. We continue to see a positive trend in both visitor numbers and tenant sales.

With that, I hand over to our CFO, Anna.

Thank you, Annica. We delivered a stable second quarter with rental income, operating surplus and profit from property management, all increasing compared with the second quarter of 2025. Rental income amounted to SEK 770 million in Q2, an increase of 6.2% compared to Q2 2025. This is primarily driven by the 6 commercial projects completed over the past 12 months. Campus Sickla and PV-Palatset in Hagastaden were completed last autumn; Hus 49, Stora Marknadshallen in Q1 and now Slakthusomradet Upper Secondary School, Sickla Central and Malarterrassen in Q2.

We also benefited from additional income from our now fully owned co-working company, A House. The occupancy rate decreased from 88.1% to 86.5% during the quarter. A large decline is related to completed projects. Approximately 1 percentage points are attributable to Sickla Central and Malarterrassen, which are not yet fully let. However, not all tenants have moved in yet, and occupancy in these projects will therefore improve during the remainder of the year. We also saw a decrease in occupancy within the standing portfolio mainly due to schools moving out of a property in Malmo. These were known lease terminations that have previously been included in net letting.

Operating surplus also increased by 2.1%, although not at the same pace as rental income. This is mainly due to the additional costs related to the co-working business. A House is currently in an establishment phase where costs succeed revenues. And going forward, it will remain a business with lower gross margins than traditional property management.

In addition, the quarter was affected by a one-off cost of SEK 7 million. Vattenfall had not invoiced us for an electrical substation in Granby, Uppsala since October 2018. The original claim amounted to SEK 24 million, but we have negotiated down to SEK 7 million through 2025. Going forward, there is also an annual cost of approximately SEK 3 million from January 2026 onwards. This is, of course, unfortunate, but it is what it is.

Net financial items were essentially unchanged during the quarter, slightly better than last year. The average interest rate was the same as in the comparison quarter. At the same time, completed projects have increased the debt volume and interest on that debt now impacts profit from property management rather than being capitalized. This effect is offset by the revised principal for capitalized interest that was introduced in 2026. The new principle increased capitalized interest by approximately SEK 9 million during Q2. Altogether, profit from Property Management amounted to SEK 320 million in Q2, representing an increase of 1.1% compared with Q2 2025.

Turning to value changes. We adjusted property values downward by 0.1%, corresponding to SEK 79 million. During the quarter, we made minor yield adjustments in the valuations of a few properties in Stockholm. These adjustments had a positive impact on values and helped offset part of the decline. However, we also made minor downward revisions to cash flow assumptions in the valuations of a handful of properties in Malmo, Gothenburg and other Stockholm, meaning properties located in Stockholm, but outside our 4 major development areas.

Overall, these changes resulted in a net value decrease of SEK 79 million. On the positive side, our projects continued to generate project gains. Commercial projects contributed SEK 28 million during the quarter, while residential projects contributed SEK 13 million. Total project gains amounted to SEK 41 million in Q2 and SEK 117 million year-to-date.

Let's take a closer look at the development in the like-for-like portfolio. For the first half of the year, rental income declined by 0.7%, while operating surplus decreased by 1.8%. Starting with rental income indexation contributed just under 1%. More precisely, 0.9%. On the other hand, the vacancy rate is higher than it was a year ago. In addition, we get an effect from the renegotiation of the Ericsson lease in Gothenburg 1 year ago. Previously, when Ericsson occupied the entire building, they paid all utility costs directly.

Today, we have several tenants in the property, meaning that we now pay these costs ourselves and recharge them through operating cost supplements. As a result, rental income increased by SEK 6 million during the quarter, but costs also increased by SEK 6 million.

Turning to costs. In addition to the SEK 6 million increase related to Ericsson in Gothenburg, we continue to see the impact of the SEK 7.5 million increase in heating and snow removal costs that affected us already in Q1. Customer losses were also SEK 10 million higher than last year. In the first half of last year, customer losses amounted to only SEK 2 million compared with SEK 12 million this year. Other costs declined reflecting continued strong cost control. Overall, operating surplus in the like-for-like portfolio decreased by 1.8%.

Looking at the different segments. The decrease in rental income is primarily attributable to the office segment, where vacancies have increased. The increase is mainly found in the retail segment, reflecting customer losses as well as a relatively high share of heating and snow removal costs. However, as Annica mentioned earlier, retail is currently performing quite well which is clearly visible in the rental development within the retail segment. If we isolate Q2, both rental income and operating surplus in the like-for-like portfolio were more or less unchanged.

A few words on the impact from transactions. As you know, we acquired the remaining shares in A house in February and have consolidated the company from the first of February, for the first half of the year, A House contributed a net SEK 23 million to rental income and had a negative impact of SEK 14 million on operating surplus. As mentioned earlier, A House is currently in an establishment phase, and our ambition is to reach profitability during 2027.

In June, we also entered into an agreement to sell the property Malmen 12 in Malmo at an underlying property value of SEK 84 million. The transaction is conditional upon completion of an ongoing maintenance project in the property. We expect to hand over the property in July and recognize the transaction in Q3. We However, we do not expect any material earnings effect from the sale. The disposal is expected to reduce rental income by approximately SEK 6 million and operating surplus by approximately SEK 4 million during the second half of the year.

During the quarter, we invested just under SEK 700 million. At the same time, residential buyers took possession of newly completed apartments resulting in net investments of just under SEK 600 million. Together with the value changes, this increased the value of the property portfolio by approximately SEK 0.5 billion during the quarter to SEK 61.6 billion. Interest-bearing debt increased by SEK 100 million during the quarter and amounted to SEK 27 billion at quarter end.

Looking at our key financial metrics. Movements were relatively limited during the quarter. This reflects the fact that there were no major changes in property values, interest-bearing debt or net financial items. Overall, it was a stable quarter. The interest coverage ratio remained unchanged at 3x. The net debt ratio and loan-to-value ratio increased marginally to 13.5x and 43.8% respectively. Our key financial metrics remain fully in line with our financial framework. Net asset value amounted to SEK 54.25 per share.

Turning to financing. We leave behind the quarter characterized by continued uncertainty in the external environment. However, both credit margins and market interest rates gradually declined during the quarter. Spreads in the bond market are now at their lowest levels since 2021. As an example, in June, we issued a 3-year bond at 77 basis points. For 5-year maturities, we estimate that we can currently issue at around 110, 115 basis points. Commercial paper with a 3-month tenure remains at a low level of approximately 33 basis points.

We continue to have very good access to financing, both through banks and the capital markets. Although interest rates were highly volatile during the quarter, the overall trend was downward, albeit from relatively elevated levels. During the second half of June, when rates declined, we entered into a number of derivative transactions. The average interest rate remained unchanged at 3.1%, including commitment fees. Interest rate duration decreased slightly by 0.1 years to 2.5 years. We still maintain a very high share of fixed interest exposure amounting to 97%, which means we have limited short-term exposure to abrupt movements in market rates.

As you know, we have a strong financing portfolio with an average capital maturity of 3.3 years and available liquidity of SEK 9.2 billion, primarily in the form of undrawn credit facilities. This comfortably covers all maturities during 2026 and 2027. Overall, we remain in a strong financing position with good access to funding. This is important for us as it enables us to continue financing our projects.

And with that, Annica, I will hand over to you to say a few words about our projects.

We currently have 6 ongoing projects representing investments of SEK 9.2 billion, of which SEK 6.2 billion remains to be invested. As mentioned earlier, 3 projects were completed during the quarter. I will return to those shortly. During 2026, we will complete 1 additional project, Lilla Marknadshallen. Haglofs has signed a lease agreement that brings the letting rate to 72%. The economic letting rate in ongoing projects has now reached 56%.

Ekeblad is the first of 3 buildings we will deliver to Ericsson. The building comprises 23,400 square meters and represents a total investment of SEK 2.7 billion. Construction has commenced, including the development of an underground parking garage despite the additional investment in the foundation works and the large garage, which will also serve 2 residential projects, we expect the project to deliver returns above our 20% project return target. The other buildings are expected to deliver returns comfortably above target levels. Completion is scheduled for the third quarter of 2031. The building is fully let today with the exception of a restaurant unit.

We are reporting Sickla Central as completed this quarter based on our principle that the project is considered completed when more than 50% is ready for occupancy. We have completed an additional letting to A House covering 2 floors and approximately 2,600 square meters. A House has performed well in leasing its existing space and currently has a letting rate of 95%. Dreamlake is now operational and Handelsbanken will move in on September 1. However, we still have work to do, and the current letting rate stands at 38%. We have now handed over the property to SISAB, which took possession on 1 June. The school will accommodate approximately 800 students and contribute to activity and vitality in the area. Students will be welcomed after the summer. The letting rate is 100%.

Finally, Malarterrassen is also reported as completed. The letting rate has now reached 75%. And we have been highly selective in choosing concepts that can contribute to the destination over the long term. Two restaurant premises remain available and discussions with prospective operators are ongoing.

As a final reminder of our broader development portfolio, we are developing 4 large urban districts in Stockholm. The potential investment volume for projects expected to start before 2033 amounts to approximately SEK 40 billion. All locations have been selected based on the existence of our planned access to Metro infrastructure by 2030.

For those of you who did not participate in our Capital Markets Day, I would like to highlight that the event was recorded and is available for replay in both Swedish and English. During the event, we presented a simulated scenario, illustrating the potential to achieve a net asset value of SEK 115 per share by 2033.

And with that, we conclude this presentation. Thank you so much for listening. Have a great summer, and we'll see you next time.

Hello, And welcome to Atrium Ljungberg's presentation of Q1 2026. The headline for this report is strong finances and strong locations in a changing world. Let me begin by summarizing the key developments this quarter. Overall, I can note that the global geopolitical conditions remain uncertain, where we have had the military operation in Venezuela, the hostile voice around Greenland and the military aggression in Iran, all in the first quarter. It seems like most business still think the war will end in a short time, and the office rental market has not changed since last quarter.

Our net letting amounted to minus SEK 8 million in the first quarter. I had, of course, hoped for a positive number, but must state that a larger lease was unfortunately not completed in the beginning of the year as management did not receive Board approval for the relocation and consequently remained in their current premises. And the fact is that net letting is always weaker in the first quarter. We had growth in our rental income of 3%, but profit from property management decreased by 0.9% due to a cold start of the year with increased heating costs and clearance of snow in the quarter and customer losses.

Profits from property management decreased by 3.5% due to the same things I just mentioned, but also due to higher interest costs. We report negative value development in the portfolio. This is mostly driven by changes in yield requirements in Kista, partly by the lower inflation assumptions for 2026 and partly by slightly weaker cash flow due to evacuated tenants preparing for upcoming projects. We invested SEK 0.6 billion in the first quarter, and the property value amounted to SEK 61 billion. We currently have ongoing projects, representing SEK 8.4 billion in ongoing investments, of which SEK 4.4 billion remains. Two projects were completed during the quarter. Hus 49 located in Slakthusomradet and Kvarter 7, our first tenant-owned housing project within Stockholm Wood City in Nacka.

Our primary focus is Stockholm, which accounts for 80% of our total property value. The portfolio consists of 65% offices and 19% retail with an economic letting rate of 88% and a loan-to-value ratio of 43.7%, which mainly has increased due to paying out dividend in the first quarter. The leasing market is broadly unchanged compared with the previous quarter. Employment continues to recover and corporate hiring intentions remain positive. At the same time, increased global uncertainty is once again creating uncertainty around company space requirements, while the focus on office presence and on offering attractive workplaces for employees remains strong.

Our retail destinations continue to show a positive trend. The ongoing recovery is clearly reflected in data from our retail portfolio with a marked increase in both visitor numbers and turnover during January and February. Improved household finances are expected to act as an important driver of the Swedish economy in 2026. At the same time, the reduction in food VAT from the 1st of April provides some support, although renewed concerns remain regarding energy prices, inflation and interest rates. The residential market continues to develop positively. Housing prices increased during the quarter and households expect prices to continue rising. Activity levels and decision-making among potential buyers have increased significantly. Sales performance was strong with the sales rate improving from 45% to 71% during the quarter. Easier mortgage regulations from the 1st of April provides support, although renewed concerns remain regarding energy prices, inflation and interest rates.

Here are some examples of the lettings we completed during the quarter. In Mobilia, we signed a 15-year lease with a fitness operator of almost 1,600 square meters. We also signed a lease with Svanen in Soderhallarna. At Malarterrassen, we finalized an agreement with a well-known [indiscernible] Desiree Jaks, who will open a pub concept. In addition, we can now disclose the tenant behind the previously announced leasing at Malarterrassen, Tommy Myllymaki, who will also be opening a restaurant at the destination. Finally, an important lease was signed in Sickla Central, where Handelsbanken has decided to relocate, moving from Nacka Forum to our premises.

Looking at our tenant mix, 53% of contracted rental value is derived from office tenants, 20% from consumer durables and 10% from culture and education. Our 10 largest customers account for 20% of the total contract value. Of that, 11 percentage points represent government and municipal tenants. The average lease term is 5 years. We only have 5 leases over 10,000 square meters, of which 2 are offices. Our retail portfolio is broad and well balanced. Fashion accounts for 12% of retail sales, while groceries, alcohol and pharmacies represent 41% of the turnover in our shopping centers. We continue to see a positive trend in January and February in both footfall and turnover in our retail centers.

With that, I will hand over to our CFO, Anna.

Thank you, Annica. Let's take a closer look at the numbers, starting with the income statement. Rental income amounted to SEK 759 million in Q1, an increase of 3.3% compared to Q1 2025. This is mainly driven by new rental income from the 3 projects completed over the past 3 quarters, Campus Sickla and PV-Palatset in Hagastaden last year as well as Hus 49 Stora Marknadshallen in Slakthusomradet, where Universal moved in at the beginning of the year. We also see a contribution to income from our now fully owned co-working company, A house. A house has been consolidated from February, meaning that its results are now reported line by line rather than as a single JV result line. I will return to A house in a separate slide.

The occupancy rate declined from 89% to 88.1% during the quarter. We define occupancy based on whether a property has a tenant on a given date, in this case, April 1. As a result, occupancy lags net letting and reflects lease terminations and new leases signed last year. The decline in occupancy this quarter is primarily attributable to the renegotiation of the Ericsson lease in Gothenburg in Q2 2025, where Ericsson reduced its space by approximately 5,500 square meters. We currently have other tenants occupying about 1,400 square meters of that area.

Turning to costs. We had an exceptionally cold start to 2026 with 2 winter months of snow and prolonged subzero temperatures. While this is positive in many ways, for property owners, it unfortunately translates into higher heating and snow removal costs, which increased by SEK 7.5 million in the like-for-like portfolio. We also saw an increase of SEK 7 million in customer losses, mainly related to a few restaurant operators in Uppsala. In Q1 2025, customer losses were virtually zero. In addition, we have costs related to A house, which I will return to, and of course, additional costs from completed projects. Overall, this resulted in a 0.9% decline in operating surplus.

Net financial items were 5.4% higher than last year. This is explained by 3 factors. First, we are still seeing the effect of lower interest rates in the comparison quarter. Even though the average interest rate at the end of the quarter has actually declined, the average interest rate in the quarter was approximately 20 basis points higher than in Q1 2025. Second, interest-bearing debt has increased due to the expansion of the investment portfolio following the completion of 3 projects where we have stopped capitalizing interest. Offsetting this, our updated principle for capitalized interest, which I mentioned last quarter, now means that we capitalize interest even in early project stages. This change resulted in additional capitalized interest of SEK 8 million in the quarter. All together, profit from property management amounted to SEK 316 million in Q1, down 3.5% year-on-year. Property values were adjusted down by 0.4%, corresponding to SEK 215 million. The adjustment relates to 5 properties.

Yields were increased in the valuations of our 2 properties in Kista and 1 office property in Malmo. Despite this, the average yield remains unchanged at 4.7%, rounded to 1 decimal. In addition, 2 properties in Slakthusomradet were written down due to lower cash flows as we are preparing these properties for future development, which temporarily reduces value. Finally, during the quarter, we lowered our inflation assumption for 2026 from 1.5% to 1%, which also had a negative impact on valuations. This may seem somewhat counterintuitive given renewed inflation concerns, but it reflects a decision taken by the valuation community in February, which we have followed. We will have to see how this develops over the course of the year.

On the positive side, we recorded project gains of SEK 50 million from commercial projects during the quarter. In addition, we recognized SEK 26 million from residential projects related to our Brf Kulturarvet project at Nobelberget in Sickla, where customers have started moving in and profit recognition has commenced. To date, 37 out of 80 apartments have been completed, occupied and profit recognized. Total project gains in the quarter amounted to SEK 76 million.

Let's take a closer look at the development in the like-for-like portfolio. Rental income declined by 1.5%, while operating surplus fell by 3.4%. Starting with rental income, this development is logical. Indexation amounted to just under 1%, more precisely 0.9%. We entered the year with a vacancy rate approximately 2.5 percentage points higher than last year. The net effect between these 2 factors largely explains the 1.5% decline. On the cost side, the main drivers have already been mentioned, a SEK 7.5 million increase related to heating and snow removal and customer losses up by SEK 7 million. Other costs, on the other hand, declined, reflecting continued strong cost control.

Looking at the segments, the decline in rental income is mainly attributable to the office segment where vacancies have increased. The increase in costs is largely found in the retail segment where customer losses occurred and where we also have a relatively high share of heating and snow removal costs.

Turning to the acquisition of A house. During the quarter, we acquired the remaining 50% of the shares and the company has been consolidated from February. Results are now reported line by line rather than netted on the JV line. A house is included in operating surplus from the investment portfolio. It is not presented separately in the income statement, but included within rental income and property management costs under management costs. In the segment note of the interim report, co-working operations are presented on a gross basis, allowing for a clear view of revenues and costs. Co-working revenues for February, March amounted to SEK 19 million, while costs totaled SEK 25 million. Intercompany rents of SEK 10 million are eliminated, resulting in a net effect of plus SEK 9 million in rental income and minus SEK 15 million in costs, corresponding to a minus SEK 6 million impact on operating surplus.

We have received questions regarding the effect on occupancy and net letting. There is no change compared to previous reporting. A premise leased to A house is considered occupied just like our own offices that we rent from ourselves. Any new lease to A house would also be included in net letting. Occupancy in the co-working business is followed and analyzed separately as it represents a different business model. During the quarter, we invested just under SEK 600 million. We also completed apartment handovers to residential buyers, resulting in net investments of just over SEK 200 million, which is a slightly lower pace than in previous quarters. We are now entering a more intensive phase in several of our major projects in Slakthusomradet. Thus, we still expect gross investments to amount to just under SEK 3 billion for the year.

Interest-bearing debt increased by SEK 700 million in Q1, driven by dividend payments during the quarter as well as ongoing project investments. The increase in debt explains why both the net debt ratio and loan-to-value ratio increased during the quarter. The rolling 12-month interest coverage ratio remained unchanged at 3x. Overall, we maintain a strong financial position, well within our financial targets. The financial markets were highly volatile during the quarter following the 3 major geopolitical events that Annica mentioned earlier. However, underlying fundamentals remained strong and as the Greenland situation eased early in the year, credit margins declined. During this window, we issued bonds totaling approximately SEK 1.5 billion at the tightest level since 2021, 3-year bonds at around 80 basis points or slightly below and 5-year bonds at approximately 110 basis points.

Long-term interest rates also declined during February. And in connection with this, we entered into a few interest rate hedges at attractive levels. Overall, these transactions reduced the average interest rate during the quarter by 0.1 percentage points to 3.1%, including commitment fees. Given market development since then with rising interest rates and spreads, this reduction should be viewed as temporary rather than a level we expect to maintain for the remainder of the year. Despite ongoing global uncertainty, we continue to have good access to financing, although on somewhat weaker terms, particularly in the bond market. In the commercial paper market, we have managed to maintain our curve even after the outbreak of the Iran conflict and are currently at 33 basis points for a 3-month tenor.

As you know, we have a robust financing portfolio with an average capital maturity of 3.4 years and ample available liquidity totaling SEK 9.4 billion, primarily in the form of undrawn credit facilities. In addition, we have an interest rate duration of 2.6 years and a high share of fixed interest exposure, which limits the short-term impact of the significant interest rate volatility we have seen.

And with that, Annica, perhaps you can take over and say a few words about our projects.

In total, we have 8 ongoing projects corresponding to SEK 8.4 billion in investment, of which SEK 4.4 billion remains. We have 4 projects scheduled for completion in 2026. The letting rate in these commercial projects is too low, a level we are not satisfied with, but we also see that market interest is strongest for our newly produced premises. Sickla Central with its 23 floors and 17,100 square meters lettable area has currently, after the lease to Handelsbanken, an occupancy rate of 24%. The building has just opened with A house on the ground floor. It is a remarkable property with panoramic views over Stockholm. However, despite the building being open on some floors, substantial tenant-specific work remains on many floors before we can receive future tenants.

Soderhallarna comprises a total lettable area of just over 26,000 square meters with an annual rental value of approximately SEK 155 million, excluding supplements. Following the completed leasing activities with Svanen as the latest tenant, the property's economic occupancy rate amounts to 40%. The building is expected to be fully completed in Q2 2027. As mentioned earlier, 2 projects were completed during the quarter. The first is Building 49, the Grand Market Hall in Slakthusomradet, which has undergone a comprehensive refurbishment. The investment amounted to SEK 320 million and is fully let. Universal Studios has moved into the property, and I had the opportunity to visit them in connection with their move-in. The result is an outstanding office environment and the tenant is very satisfied. We also completed our first housing cooperative project within Stockholm Wood City during the quarter. The project features both a timber structure and the timber facade and comprises 80 apartments with a total investment of SEK 490 million. The sales rate currently stands at 70%.

In early 2023, we acquired 50% of the event and co-working operator, A house. And during the first quarter of this year, we acquired the remaining 50%. The rationale behind the acquisition was and remains to broaden our customer offering as we believe co-working will continue to be an important part of future workplace solutions. A house has pursued an ambitious expansion strategy over recent years and today operates 5 destinations. Arc on Ostermalm, Sickla Central, Borshuset in Slakthusomradet, Katarinahuset at Slussen and a new destination in Life City in Hagastaden, which is scheduled to open this summer. Such rapid expansion naturally puts pressure on earnings as new destinations are not fully leased at opening.

That said, leasing activity for the studio offering has been strong. Arc is fully let. Borshuset is leased to 81%, Katarinahuset to 99%, Sickla Central to 73% and Hagastaden, despite not yet having opened, is already leased to 18%. The more challenging part of the business has been the event operations, which have been adversely affected by the prolonged economic downturn as this segment is particularly sensitive in weaker market conditions. We expect A house to continue reporting losses throughout 2026 with the ambition of returning to profitability during 2027.

A final reminder of our broader development portfolio, we are developing 4 major areas in Stockholm where natural population growth is strong. The potential investment volume for projects starting before 2032 is SEK 40 billion. All locations are chosen where there is an existing or planned underground station by 2030.

That concludes what we intend to present for this report. Thank you for listening. And if you have any questions for me or Anna, feel free to send us an e-mail.

Welcome to this year-end presentation for 2025 by real estate company Atrium Ljungberg. Presenting today is CEO, Annica Anas; and CFO, Anna Jepson. And by that, please welcome, Annica Anas. Go ahead with your presentation.

Thank you very much, Mattias. So the headline for this report is Completed Projects Drive Rental Growth.

So let me begin by summarizing the key developments this quarter. Overall, I'm pleased with our delivery in 2025, given the challenging market conditions we have experienced. Our net letting amounted to minus SEK 12 million in the fourth quarter. I had actually expected a positive figure, but several large lease agreements continued to -- into the new year, and we also received one late and unexpected termination, a municipal administration in Palmfelt Center in Slakthusomradet, approximately nearly 4,000 square meters.

While unexpected, it is actually -- it accelerates our plans for the future project in the property. For the full year, however, net letting is positive at SEK 5 million. And when including the contracts we have terminated in preparation for upcoming projects, the figures amounts to SEK 12 million.

Net operating income in the comparable portfolio decreased by 2% in the quarter, but increased by 1% for the full year, which is encouraging given the tougher market environment. Income from property management decreased by 1% in the quarter. Market yield requirements remain unchanged, but we report negative value development in the portfolio. This is driven partly from the outcome of the 2025 indexation and lower inflation assumption for 2026 and partly by slightly weaker cash flows resulting from higher vacancies in our management portfolio.

We invested SEK 2.9 billion during 2025 and the property value amount to SEK 61 billion at year-end. We currently have ongoing projects representing SEK 9.1 billion in investment, of which SEK 4.7 billion remains. The project was completed during the year, PV Palatset in Hagastaden, gives us 10 ongoing projects, including 6 in Slakthusomradet, 2 on Sodermalm and 2 in Sickla.

And if we look at Atrium Ljungberg in brief, it looks very much like the last quarter with 80% of the focus and value in Stockholm and then we have 66% offices and 29% retail. And the economic letting was 89%, and we see the LTV at 42.5% in the end of the year.

A few words about the market. The leasing market is showing signs that the rise in vacancies may have reached its peak, even though supply still exceeds demand at present. The development suggests a gradual return to stability as economic conditions begin to improve. During the second half of the year, we observed steadily increasing interest in the office premises in our portfolio and the number of ongoing dialogue is significantly higher than the same period last year.

Many of the businesses we meet report a great focus on their office environments, either to strengthen the employee experience or to adjust their space to new conditions. Above all, we are now seeing a clear sense of determination in these dialogues, something that was missing during earlier more cautious quarters. I can say that from a broader perspective, we also meet modest but clear signs of improvement.

So we can now look at the most significant lettings we did during the quarter. Liljeholmen emerged as the strongest performer this quarter with 3 major lettings, totaling close to 3,000 square meters, and we signed ForMotion, Doctors Without Borders and Leica Geosystems. Hagastaden still shows a big demand, and we had a letting also for a healthcare operator in the quarter.

We had hoped to finalize 2 additional leasing in Soderhallarna before year-end, but negotiations are still ongoing. We remain hopeful that contracts will be signed shortly. We have also signed an additional lease with a restaurant in Malarterrassen, where 4 out of 6 restaurants now are confirmed, and the latest is also a very known and famous restaurateur.

If we look at the customer base, a brief reminder regarding the tenants that we have. So we have a highly diversified contract portfolio with our 10 largest customers according for 21% of the total contract value. Of that, 9 percentage points represent government and municipality tenants. The average lease term is now 5 years. Offices are our largest revenue source at 53%, followed by retail at 20%.

Looking at our lease maturity structure. The potential earnings impact for 2026 amounts to SEK 152 million, while the exposure from contracts that are turnable during the year amounts to SEK 546 million and can have an effect on our net letting.

If we look at our retail portfolio, it's a very broad and well balanced. Fashion accounts for 13% of retail sales; while groceries, alcohol and pharmacies represent 40% of the turnover in our shopping centers. We continue to see a positive trend in turnover in our retail centers with the market increase toward the end of the year.

And with that, I would like to hand over to our CFO, Anna.

Thank you, Annica. So let's review the numbers for the final quarter in some more detail. Rental income reached SEK 760 million in Q4, and that represents an increase of 3% compared to 2024. And this growth is mainly due to the completion of another project, PV Palatset in Hagastaden where the economic -- the Swedish economic Crime Authority moved into 10,000 square meters in mid-October. And in addition, we received one-off compensation totaling SEK 24 million, which is SEK 12 million higher than last year.

And the reason for these one-off compensations is mainly that the reconstruction of Convendum was finalized and the 2 tenants in Hagastaden vacated their premises. We have, however, secured new tenants for most of these areas, ensuring continued occupancy.

On the cost side, property expenses increased by 3%, mainly due to additional costs from completed projects. But we also saw a slightly higher customer losses in Q4. Customer losses were up SEK 3 million, which could be attributed to a couple of restaurants.

As both revenues and costs increased by 3%, operating surplus rose by the same percentage. The surplus margin for the year stands at 71.8% and that's unchanged from last year, and that is despite the decline in the occupancy rate, which is now at 89%. But thanks to strong cost control throughout the year, we have managed to maintain this operating -- this surplus margin.

Net financial items are 9% higher than last year, reflecting our adjustment to the higher interest rate environment. But we are now approaching quarters where this adjustment has been fully implemented. The average interest rate, including commitment fees, has remained constant at 3.2% for half a year now, although there is still a difference of about 25 basis points in Q4 compared to last year. And overall, profit from Property Management amounted to SEK 311 million in Q4, which is 1% lower than last year.

Moving on to property values. We can see that the average yield has remained stable at 4.7% throughout the year and property values have been almost unchanged with the downward adjustment of 0.1% over the year. Nevertheless, we have seen movements in property values every quarter, and Q4 was no exception. And property values were adjusted down by SEK 369 million in Q4, mainly due to index effects.

The October index for 2025 was low at 0.92%. And with the declining inflation, the community or property valuers have revised down the index assumption for 2026 from 2% to 1.5%. Net letting in the quarter also had an impact of property values. On the positive side, however, we recorded project gains of SEK 22 million in the quarter and SEK 127 million for the year. And if you include residential projects, that number is SEK 160 million.

So let's turn now to the performance of our like-for-like portfolio. And looking at the development in the like-for-like portfolio for the year, rental income increased by 1.3% and operating surplus by 1.4%. And while the increase is not substantial, we are very pleased that it is positive for the full year despite a slight decline in Q4 due to higher vacancies.

And the increase in rental income is thanks to indexation and increased charges for property tax and tenant improvements. Costs rose by 0.9%, and that's mainly due to property tax. And we've also seen customer losses decrease during the year by SEK 10 million; and also reduced media costs, thanks to active efforts to lower consumption, and energy usage has actually decreased by 15% during the year. If you exclude higher property tax and the lower customer losses of the year, costs remained flat.

Looking at the different segments. Both segments showed an increase in operating surplus, though for different reasons. In the Office segment, revenue growth was the main driver with positive effects from indexation and additional charges. In the Retail segment, the increase was due to cost savings, not indexations as more contracts are turnover based. Lower customer losses and good cost control contributed positively in the Retail segment.

And next, I'd like to remind you about the impact of our property transactions during the year. In June 2024, we sold 2 properties in Sundbyberg to free up capital for investments in our project portfolio. And from Q3 onwards, these disposals no longer affect quarter-on-quarter comparisons, but they do impact the full year figures.

The properties -- the sole properties generated a rental income of SEK 61 million and an operating surplus of SEK 47 million in the first half of 2024. And this sale is the reason why the operating surplus for the full year 2025 decreased by 1%. And there was also a minor effect from newly acquired project properties, specifically property tax for Malarterrassen in Slussen and Angqvarn in Uppsala.

So let's continue with an overview of our financial position. Property values increased by approximately SEK 400 million in Q4, reaching SEK 61 billion; and investments totaled just over SEK 800 million and value changes were minus SEK 369 million. Total investment for the year amounted to SEK 2.8 billion or SEK 2.9 billion, including acquisitions, and that is in line with our target to invest 5% of the balance sheet per year.

Interest-bearing debt increased by just over SEK 400 million in Q4 and by SEK 1.9 billion for the full year, totaling SEK 26.2 billion. And the increase is, of course, to finance our project investments.

Looking at the key ratios. The interest coverage ratio for 2025 is 3x. And that is a sound level, even though it has gradually declined during the year, as we have adjusted to higher interest rates. The net debt-to-EBITDA ratio is 12.9 which is a relatively high number, and that is due to low-yielding properties combined with larger project investments.

The loan-to-value ratio is 42.5%, and that's up 0.5 percentage points in Q4 due to the negative value changes in the quarter. But still, that's a reassuring level, and that's where we would like to be for our LTV ratio. Net asset value per share adjusted for dividends increased by 4% in 2025 to SEK 54.89 per share. We continue to have good access to financing on favorable terms both from banks and the capital market, and credit spreads in the capital market tightened by a few basis points in Q4 and in early 2026.

And we have completed a few bond issues at very good levels. In October, a 5-year bond at 118 basis points and now early January, a 5-year NOK bond at 104 basis points, which we swapped to SEK at 112 basis points and also a 3-year bond at 80 basis points. And commercial paper is currently at 35 basis points for a 3-month tenure.

Our financing portfolio remains secure and stable with an average capital duration of 3.6 years and a well-balanced maturity profile. And there are essentially no bank maturities in 2026, and bond maturities amount to SEK 3.5 billion.

Available liquidity -- we have available liquidity of SEK 9.5 billion, and that covers almost all maturities over the next 2 years. We are also in a secure position on the interest rate side. And although we have seen rising term premiums in Q4, which make it more challenging to maintain interest rate duration, the average duration is 2.7 years with 96% of interest exposure fixed through swaps or fixed rate loans. The average interest rate in the portfolio is 3.0 excluding commitment fees and 3.2 including them. And it has been unchanged now for 2 quarters in a row, and we expect to maintain the 3.2 level in 2026.

And with that, I will now hand over to Annica who will speak a little bit about our projects.

In total, we have 10 ongoing projects corresponding to SEK 9.1 billion in investment, of which SEK 4.7 billion remains. We have 7 projects scheduled for completion in 2026. The letting rate in these commercial projects is too low, a level that I'm not satisfied with, but we also see that market interest is strongest for our new produced premises. In Soderhallarna, we are expecting substantial interest in many viewings and active dialogues. My assessment is that the property will be fully let during 2026.

Also comment on Sickla Central with 23 floors. Currently, we have an occupancy rate of 20%. The building has just opened with a house on the ground floor. It is a remarkable property with panoramic views over Stockholm. However, despite the building being opened, on some floor, we have substantial tenants specific work that remains on many floors before we can receive future tenants.

Then during the quarter, we completed PV Palatset in Hagastaden. It's a big, major project for us and also one of the biggest tenants that have moved in, it's the Economic Prime Authority that is, as I said, the large tenant. The project has been in -- success in several aspects with a highly satisfied tenant and the project margin of 49%. The remaining to be let is only one small office part of 400 square meters and the restaurant space in the bottom floor.

And then a reminder of our big development pipeline. So we have 4 major areas in Stockholm, where we have a natural population growth. The potential investment volume of projects is around SEK 40 billion, and all locations are chosen where there's an existing or planned underground station by 2030.

As you remember, we have a dividend policy that states that we should distribute approximately 1/3 of income from property management. And the Board has proposed SEK 0.74 per share, and its dividend share of 36%.

And by that, I think we should say a few words about 2026, and I would like Anna to step in, so we can give you some guidelines when it comes to both numbers and also the market.

A few words about rental income. October index in 2025 landed at 0.92%, and that adds SEK 21 million to rental income in 2026. We entered the year with a lower occupancy rate of 89% compared to 91.5% in the beginning of 2025. And at the same time, we have 7 projects completing in 2026; 6 of them commercial projects, which are expected to contribute just over SEK 60 million from projects completed in 2026 and also nearly SEK 60 million of rental income from those completed in 2025.

We expect continued strong cost control with no major cost increases except, of course, for cost from completed projects. Electricity consumption is also expected to continue to decrease as we work on energy savings. Leasehold fees are expected to increase by SEK 4 million in 2026, mainly due to the full year effect of the renegotiation of Stora Katrineberg in Liljeholmen in 2025 and also the renegotiation of Palmfelt Center from October 2026.

And as usual, we do not agree with the City of Stockholm, but we estimate an increase in leasehold fees of about SEK 4 million in 2026 and another SEK 4 million in 2027 as a full year effect, but then the next renegotiation will not occur until 2029.

As mentioned, we have completed the adjustment to higher interest rates in 2025 and expect to maintain the average interest rate in the portfolio at 3.2%, including commitment fees during 2026.

And also a few words about capitalized interest. In 2026, we will change our principle for capitalizing interest, activating interest even in the early stages of projects. Previously, for simplicity, we have activated interest from start of production. But from 1st of January, interest will be activated from the first krona. And if we had applied this principle in 2025, we would have capitalized SEK 36 million more than we actually did.

And finally, a few words about our investments. We will, of course, continue to invest in our projects, and we expect investments to fall just short of SEK 3 billion, landing at high SEK 2 billion. And during the year, we will also complete the residential project resulting in net investments about SEK 500 million lower than that.

And with that, Annica, perhaps you can say a few words about our market outlook.

Absolutely. As I mentioned, growth is expected to accelerate in 2026, driven by a stronger domestic consumption. At the same time, we have the geopolitical uncertainty that remains. Though it appears to cause less concern than before, the market seems increasingly adapting to it. Defense spending and infrastructure investment continue to drive economic activity. We also see strengthened domestic demand combined with rising business confidence and growing investment willingness.

In addition, the number of active tenant dialogue for us has doubled from roughly 60 to around 120 concrete discussion compared with a year ago, and that, of course, is a clear sign of market strength. So taken together, I see clear signs of optimism in the market, which creates stronger condition for increased leasing activity moving forward.

That concludes what we intended to present in this report. And if you have any questions, you can send an e-mail for me or Anna, and we will respond as quickly as we can. Thank you very much.

Welcome to this live broadcasted report presentation regarding the third quarter of 2025 with real estate company, Atrium Ljungberg. Presenting is Annica Anas, CEO; and CFO, Anna Jepson.

Please go ahead with your presentation, Annica.

Yes. Thank you very much. As to start, I would like to summarize a few things from this report, and the headline for the report is our high-quality property portfolio delivers results.

Our net letting amounted to SEK 3 million in the third quarter. But if we take in consideration also contracts canceled due to upcoming project, the number is SEK 9 million. And for the first 9 quarters, it was SEK 16 million or SEK 23 million.

Our net operating income like-for-like increased by 4.3%, which is a good number for the quarter and 2.6% during the first 9 months. Profit from property management decreased by 3.7% this quarter. And the biggest effects are that, we, last year, sold some properties, but also that the interest rates have increased.

A good part is that overall, we see a very good cost control in the company. We see unchanged yields in the market, but have increased changes in the value, mainly due to project gains. Anna will talk about this more later.

We have invested SEK 2.1 billion during the first 9 months and the property value adds up to SEK 61 billion in the end of the quarter. We have ongoing projects with an investment of SEK 9.8 billion, of which SEK 5.3 billion remains to be invested. We have completed one project, and we have a new decided one, so still 11 ongoing projects.

If we look at the overall portfolio, it looks very similar to last quarter with 80% of the value in Stockholm and that we have 64% of the portfolio is Offices. The LTV is stable or 42% and the occupancy rate, 90%.

And then, a few words about the market. After a quite long period of uncertainty and waiting, we are actually now seeing signs of some stabilization and the confidence in the Swedish economy is beginning to return. The recovery is expected to pick up in 2026 after a prolonged recession, mainly driven then by the household consumption. The optimism is all based on interest rate cuts and large government spending boost.

Factors that guarantee increased activity and the confidence in the future. This also improves the conditions for the companies, which is, of course, very important for our business. So, we also see that many companies cannot stay still any longer. They need to do some kind of change when it comes to their business and that their new space. So, they're actually looking for more functional and attractive environment in -- also for their business.

So, given this background, I'm cautiously positive about the market development in the near future. If we look at the tenant-owned housing market, it has been stable during the third quarter, but still characterized some weighting. Activity has increased, but buyers are selective and the price levels are being held back despite improved interest rates.

Conditions from buyers are better than it has been for a long time. The new conditions market has had a clear restart after the summer with projects with strong offers attracting the most customers. And now, in our own project at Nobelberget, we see interest activity and greater determination among stakeholder, which is very gratifying, despite some concerns among consumers about their own sales.

But in the quarter, we can see that we have done some business and the project sales is now at 35%. So, in the quarter, we have done some important lettings. As I said, the net letting was SEK 3 million. Haglöfs have signed a contract in Slakthusområdet, which means a new project start for us, and I will come back to this a bit later.

Life City in Hagastaden continues to be a really attractive place for knowledge-intensive businesses. And here, we have signed leases for a total of 1,700 square meters with Bristol-Myers Squibb and ProPharma. And with this latest strength of Life City is now fully let.

Interest in office space in Slussen remains very strong. During the quarter, we welcomed new tenants, such as Mynewsdesk, and the law firm, Kahn Pedersen, while several existing companies chose to grow with us. Among other things, Gullers Grupp and Guessr have expanded their premises and extended their agreements and Sony Music Group in have also a new lease with music studios in Katarinahuset. This really confirms Slussen's attractiveness and the high demand, both for modern office solutions, for the vibrant urban environment that's emerging here. In total, the new expanded agreements cover over 2,000 square meters.

Another major lease during the quarter is the agreement of 1,100 square meters in BAS Barkarby, in Järfälla. And a lot of things have also happened in the restaurant side, last spring, Matateljén opened in Slakthusområdet. And now the restaurant has also signed an agreement for Ateljéns Pizza in the neighborhood. And that's also the last premises in House 26 in Slakthushallarna.

The Nya Söderhallarna will be inaugurated next autumn with several years of renovation and will house a market hall and restaurants in the new version, a cinema as well as newly renovated office and roof terrace. At the end of September, we signed an agreement with the restaurant operator behind the Gränd, a brand-new destination for food and drink experiences with a focus on draught (sic) [ craft ] beer and international food. And I think, it's going to be a very good addition to this building.

Then a reminder of our tenant portfolio, we have a well diversified contract portfolio where our 10 largest customer accounts for 21% of the contract value. Of this 21%, 9% of the contract values from state and municipalities. And we have an average contract period of 4.8 years.

Offices is our largest source of revenue with 53% and consumer durables, our second largest accounts for 20% of the total revenue. And 44% of the total maturity is from 2030 and onwards.

To take a look -- quick look on our Retail portfolio also. Fashion accounts for 13% of the sales in our Retail locations. Food, alcohol and pharmacies stands for 40% of the turnover in the retail locations and we see a positive trend when it comes to sales in our Retail hubs.

And we think that, we will see a start of the consumption to start to pick up in the beginning of 2026. That, of course, will have a positive effect in the Retail segment as well.

And with that, I would like to hand over to Anna to talk about the figures for the quarter.

Thank you, Annica. So, let's take a look at the numbers. We are very happy to report a strong result for the third quarter, the best quarter for us in 2025. Rental income in Q3 amounted to SEK 736 million, which is a decrease of 1% compared to Q3 in 2024. However, just like in Q1 and Q2, rental income in the like-for-like portfolio increased, which I will return to shortly.

In 2024, we received large non-recurring payments of SEK 18 million in Q3. And this year, the figure is only SEK 1 million. And this is a positive development as we prefer tenants to stay rather than pay one-off fees and move out early.

And adjusted for these non-recurring items, rental income increased by 2%. And the occupancy rate decreased by 1.8 percentage points to 89.7%, mainly due to IBM and Fujitsu, who's previously announced lease terminations took effect on the 30th of September.

Property costs decreased by 5% in the quarter, reflecting strong cost control and targeted our efforts to reduce expenses, particularly related to energy consumption. And it's encouraging to see this reflected in both our sustainability metrics and our financial results.

Overall, the operating surplus increased by 1% to SEK 550 million and by 4% when excluding non-recurring payments. And the surplus margin rose in the quarter and now stands at 71.8% on a rolling 12-month basis.

Looking at the period of January to September, the operating surplus is slightly down overall, which is entirely attributable to the sale of two properties in Sundbyberg in June 2024. And in the like-for-like portfolio, however, we see an increase for the full period.

Net financial items rose by 11%, and the average interest rate in Q3 remained stable at 3.2%, including commitment fees. And the increase in net interest expense is due to the adjustment to the current interest rate environment, which took place in the second half of 2024.

Profit from property management in Q3 amounted to SEK 352 million. We also recorded positive value changes of SEK 79 million in the quarter, of which SEK 62 million relates to yield adjustments. The average yield remains unchanged at 4.7%, with minor adjustments for a few properties. Primarily a large mixed-use property where we applied a more granular segmentation of yield requirements in the property.

Cash flow was positive at SEK 84 million despite a negative impact of just over SEK 100 million due to a downward adjustment of the index assumption for 2025 from 1.5% to 1%, in line with market practice. And commercial project gains amounted to SEK 57 million in Q3, bringing the year-to-date total to SEK 105 million and including gains from residential projects, the total reach is SEK 144 million.

Earnings per share for the period were SEK 1.33. All-in-all, Q3 was our strong -- it was our strongest quarter of the year. And at the same time, we know that Q4 tends to be weaker with a higher cost base. And in addition to that, the positive net letting seen during the year has been driven by project leasing, which will, of course, impact occupancy rate in the short term.

Looking at the like-for-like portfolio for the period, rental income increased by 2.2% and operating surplus by 2.6%. And this growth is driven by indexation, increased charges for property tax and tenant improvements as well as turnover-based rent for certain tenants, primarily in the Office segment.

What is particularly encouraging is that the operating surplus increased more than the rental income, meaning that revenues grew faster than costs. Total costs increased by just over 0.8%. And within these figures, we see a positive impact from reduced customer losses of SEK 13 million and a negative impact from increased property tax costs of SEK 17 million, as 2025 is a property tax reassessment year.

Adjusted for these items, costs remain flat, which reflects strong cost control and active efforts to optimize operations and reduce consumption and manage our properties efficiently. In the third quarter alone, cost decreased by 3.8%, resulting in a 4.3% increase in operating surplus. And this is a figure that we are very pleased with. And looking at the different segments, both Offices and Retail showed an increase in operating surplus and in both cases, the surplus grew faster than revenues, which is positive.

However, the drivers differ. In the Office segment, the increase is driven by higher revenues with positive effects from indexation, additional charges and turnover-based rent. In the Retail segment, the increase is driven by cost savings, and we don't see the same effect from indexation as more contracts are turnover based in the Retail segment.

Consumption has not yet picked up in 2025 as we know. But the conditions are in place, and we hope to see improvement toward year-end.

On the cost side, we're seeing the impact not only of strong cost control, but also lower customer losses, which is also a very positive sign. In June last year, we sold two properties in Sundbyberg, and the purpose was to free up capital for investments in our project portfolio. And starting in Q3, these disposals no longer affect quarter-on-quarter comparisons, but they do impact the year-to-date figures.

And in the first half of 2024, the sold properties generated rental income of SEK 61 million and an operating surplus of SEK 47 million. And this is the reason for the decrease in operating surplus for the first period in Q1 to Q3. And there is also a minor effect from newly acquired project properties, specifically Mälarterrassen in Slussen and Kvarteret Ångkvarn in Upsala.

Moving on to our financial position. The value of our property portfolio increased by approximately SEK 700 million in the quarter, reaching SEK 60.6 billion, and this is the result of SEK 652 million in investments in our projects and SEK 79 million in value changes. And so far this year, we have invested SEK 2.0 billion or SEK 2.1 billion, including acquisitions. And we currently have 11 ongoing projects, and one project was completed and another started in Q3. And the total investment volume is SEK 9.8 billion, of which SEK 5.3 billion remains to be invested.

Seven of these 11 projects will be completed in 2025 and 2026. And once fully let, this project will generate rental income of approximately SEK 360 million. And we're not yet there, but these will still be valuable additions to both rental income and operating surplus and Annica will return to this shortly.

Interest-bearing debt increased by SEK 350 million in Q3 and by SEK 1.4 billion year-to-date, totaling SEK 25.7 billion in interest-bearing liabilities. And this increase is solely to finance investments in our projects. And we are investing at a pace that allows us to maintain stable financial key ratios at healthy levels. The loan-to-value ratio remained unchanged at 42%, which is a very good level for us. And the interest coverage ratio on a rolling 12-month basis is 3.1x, that's down 0.1% in the quarter. And this remains a solid level, even though it has gradually declined during the year as we have adjusted to higher interest rates.

The debt ratio increased by 0.2x to 12.6x in the quarter. And this relatively high figure is due to a combination of low-yielding properties and large project investments and many of our projects are in late stages, which adds debt but not yet earnings. And we expect the ratio to rise slightly before turning downward as our ongoing projects begin to generate rental income.

And net asset value per share adjusted for dividends has increased by 5% during the year to SEK 55.21. On the financing side, we continue to have good access to funding on favorable terms, both from banks and the capital markets. Credit spreads in the bond market tightened during the quarter. And in September, we issued a 5-year bond at 120 basis points, which is 10 basis points lower than earlier this year. And commercial paper is back at 40 basis points for a 3-month tenure.

And our financing portfolio remains secure and stable. The average capital duration is 3.4 years with a well-balanced maturity profile for both bonds and bank loans. And we only have SEK 300 million in bond maturities to refinance this year and a relatively limited volume next year as well. Available liquidity amounts to just under SEK 10 billion and primarily in the form of undrawn revolving credit facilities. We also have a secure position on the interest rate side. And average interest rate duration is 3.0 years and 95% of our interest exposure is fixed through swaps or fixed rate loans.

The average interest rate in the portfolio is 3.0% excluding commitment fees and 3.2%, including them, and that is unchanged in the quarter.

Finally, in early September, we received the welcome news that Moody's confirmed our Baa2 rating and upgraded our outlook from negative to stable. And they also lowered our ICR requirements from 3.0 to 2.5. And what was particularly encouraging was that Moody's raised their assessment or asset quality from Baa to A. And this is really a clear recognition of the quality of our property portfolio and property portfolio that delivered strong results in the third quarter.

And with that, I will hand over to you, Annica, to continue with an update on transactions and projects.

Thank you, Anna. Yes. During the quarter, we signed an agreement to sell our development rights of co-ops in Hagastaden, the project Kvarteret Stanford 1. The purchase price is based on a total underlying property value of SEK 818 million. And before the transaction will take place, we will complete the underground garage. The property will be occupied in two stages, the first of which is in December 2026 and the second in August 2027.

We are one of the largest property owners in Hagastaden and our ambition is to contribute to the long-term development in the area, but with a focus on the offices that we have in our portfolio. And given our extensive investment pipeline totaling to more than SEK 40 billion, we have, therefore, chosen to step away from this specific residential project in favor of other investments, that we believe will create greater value for the company. The transaction is expected to be revenue neutral for us.

Then a few words about the completed project that we have in Sickla, it is Campus Sickla. It's a very fine project in many ways. One part is that, it's the first completed project within our Stockholm Wood City. The project is both wood frame and wood facade. The student started after summer and will make -- have made the neighborhood full of life and activity. It's not the biggest project, but adds to our rental income of SEK 7 million.

Then I'm very pleased to announce that Haglöfs has chosen Slakthusområdet for the new headquarter. It is a brand with a strong identity and high ambitions, exactly the kind of player that helps us shape the character of the area. Occupancy is planned for the Autumn 2026. The premises will be located in Building 48 in Lilla Marknadshallen, one of the area's original buildings with a unique industrial historical architecture, which is currently undergoing a careful renovation.

In condition with lease, we will start the project and has a total lettable area of approximately 1,950 square meters and an annual rental value of approximately SEK 10 million, excluding add-ons. And occupancy rate is now 72%. So, all in all, 11 ongoing projects with a total investment of almost SEK 10 billion, where SEK 5.6 million is remains to be invested. So we have seven projects that will be completed during the end of this year and during 2026, given the current occupancy rate we have secured annual rents of SEK 175 million, but of course, they will not have an effect directly during 2026, since it's depending on when the project is completed.

Sickla Central is currently has an occupancy rate of 20%. The house has just opened with a house on the ground floor and what a house, it's really fantastic qualities with a panoramic view of Stockholm. After a successful campaign, we have had about 15 to 20 viewings the recent week, and the response is very positive. The size of the space is aimed to attract small- and medium-sized companies with a time horizon of 6 to 9 months, which means that it's only now when there is actually an interest in line with our completion, which is expected to be in Q1 to Q2 next year. There's still a lot of interior work to be done before the consumers can -- customers can move in.

And then just a quick reminder of the very big pipeline we have of projects, where we have a plan to invest SEK 40 billion in places in Stockholm, where there is a subway today or will be one in the future. So that Sickla, Slakthusområdet, Hagastaden and Slussen.

That's all for this report. In conclusion, I can state that it has been a very strong quarter if you look in the like-for-like figures, which is very good.

So thank you, and goodbye. And if you have any questions, you can e-mail me or Anna. So we will respond for you as quickly as we can. Thank you very much.