Welcome to the presentation of Wilbur's first three-month report, 2026. Growth, cash flow, and core business is our mission. And even if the world gives us some challenges, our religion continues to deliver. Net debt to EBITDA at 10.5 times, good access to financing continues, and we have acquired our first premises in Car Space Bean in Copenhagen. And with some figures on that, the rental income was $1,150,000,000, a new record, the operating surplus $800,000,000, and income for property management $520,000,000. The result for the period increased to $548,000,000, corresponding to $1,78,000 per share, and EFRA NRV has increased by 10% to $1,114,000 per share adjusted for paid dividend. A comparison of the rental income Q125 and Q126, indexation plus 13 million, acquisition plus 46 million, currency effect minus 12, additional charges plus 23, and completed projects, new leases, and renegotiation plus 35 million. And the netletting was negative with minus 35 million, the first negative quarter after 43 quarters in a row with positive numbers. New leases of 49 million and terminations of 84. 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 8 million in Sweden from bankruptcies that affected the result with minus 1 million, but terminations had a yearly rental value of 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 netlettings the coming 43 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 netletting in a historical perspective, lettings in green, terminations in light blue, and dark blue stacks are the netletting. We don't win a release 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% of rental income, 7 out of 10 of governmental tenants, and the public sector contributes with 22% of rental income. The rental value as of 1 April 26 is 5.157.000.000 per year, first time over 5.000.000, plus 11.6%, and rental income 4.523.000.000, 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 own a year ago excluding projects compared with updated figures we can see that rental value is up 2.2 percent and rental income is up 1.1 percent like for like does not include the lot 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 64 billion 440 million in accordance with the external valuation of 100 of our portfolio we have made acquisitions which add on 534 million investments 562 divestment minus 4 million changes in valuation plus 19 million and together with currency translations of 170 million that summarized to a value of 65 billion 642 million swedish krona valuation parameters wouldn't haven't changed since last since year end and that includes assumed indexation of one percent so very small changes in valuations, the growth comes mainly from investments and the transaction we made in Copenhagen. Here's a long-term trend for portfolio growth from 7 billion to 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 $3,356,000,000 that gives a running yield of 5.5%. 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. the occupancy has improved in some areas and lost a bit in others what we know is that of the total vacancy approximately 14 percent are already signed but not entered yet and for additional six percent of the vacancy we have ongoing discussion 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 relatively flat next quarter, but with somewhat increased income for the base rent figure. Parking and additional charges may vary. In the office portfolio, the market value is $51,451,000,000 with an occupancy rate of 90%. 90% in Malmö, continue with small improvements in Helsingborg to 91%, 89% in Lund and 91% in Copenhagen. The operating surplus for offices summarized to 2,781,000,000 and a running yield of 5.4%, 6.2% fully left. The Odisic production portfolio have a value of 9.315.000.000, 92% occupancy in Malmö, 83% in Helsingborg, 95% in Lund and 97% in Copenhagen. In all, 88% occupancy with a running yield of 6.2%, 7.3% for Lillette. 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. 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 one year, and there is more to come. We have also new sustainability targets from 1st January and will report on a wider spectrum with focus on energy efficiency, carbon dioxide emissions and climate adaptation, as well as important social and governance measurements. 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 to replace refrigerant in our cooling systems to more environmental neutral gases. And this work continues. A catalogue of our value and properties in our four cities and Q1 26, 38% of the value is in Malmö, 23% in Helsingborg, 17% in Lund and 22% in Copenhagen. Commuting across the Aerosone 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 defence 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 harbours, highways, railways and of course the Ersund 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 Carolina House in Karlsbysby. Property value of 370 million Danish krona and location that is attractive both for living and working. A high density, close to the city center, interesting mix of older refurbished building and new built. 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 1,150,000,000 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 reports, we had a positive one-off effect of 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 $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 520 million, which is up 12% versus the same quarter previous year value changes in the property portfolio were basically flat plus 19 million so no no big changes at all and and the the underlying assumptions as rika mentioned was also basically the same as at year end but positive value changes in our interest rate derivatives portfolio plus 191 million and in total a profit for the period of 548 million on the next slide looking at the balance sheet investment properties versus 12 months previously went up by six and a half billion swedish kroner and stood at 65.6 billion in total um i think the presentation of the slides working or not not sure um let's see again see if we can get a signal from somebody if the slides are visible it looks okay over there yes it is so okay so we'll carry on yeah um equity end of march stood at 24.9 billion swedish corner up 1.4 billion versus 12 months previously. Then we've of course during that period paid almost a billion Swedish kronor in dividends. The borrowings stood at 34.2 billion, up 5 billion versus 12 months previously and as you remember we have made acquisitions of approximately 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 2.9 times. Looking at per share numbers, the EPRA NRV stands at 101.14 kronor 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 zero interest rate period 2019, 2020, 2021. But the 2.9 times level where we are currently is well above the long-term goal or the goal that we have of a minimum of 2.0 times. On the right hand side you can see the equity assets ratio well above our threshold of 30 percent stands at 36.8 percent currently and the loan to value is well below our limit of 60 percent 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 10.5 times. 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. It's 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 end January, beginning February, on attractive levels, I would claim. 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 2.6 billion Swedish kronor, 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.
And I'll give you an update on our investments and progress and a quick overview of our largest project. During Q1, we have invested 562 million and it remains 1,738,000,000 to invest in a pro project. 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 mixture of refurbishment and new build in the portfolio. Let's start with projects soon to be completed. In Malmö and Hyllje we continue with Bleckhorn at 1 Vista, an 884 million investment. The Mobility Hub was completed and 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 1 January, the total area and the building are included in Malmö 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 post-Tornet phase 2 a new modern office right beside the central station will also be completed in Q2 but moving in continuous rest of 26 10 100 square meters 448 million yield on cost 6.5 percent a very successful project in the southern part of Lund we continue the development of Tomaten this project is for BBC will also be completed in Q2 26 and we invest 79 million 3,600 square meters and yield on cost 7%. And next to that at 7.1, 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 260 million and yield on cost 9.2%. The large project at Amphitrite 1 in Malmö for Malmö University is running well in accordance with plan. A bit above 20,000 square meters from Malmö University at a 10-year lease. Investment 1,130,000,000 and completion is planned to late Q4-27. Discussion is ongoing regarding a possible prolonging of the lease to 20 years, both positive and possible. At Kranen 7 in Malmö, we will invest approximately $136 million in a preschool for the municipality. 2,900 square meters, zoning plan approved and completion is expected to Q327. Public Procurement Act for the contractor is still ongoing. And at Skrovet 6 in Malmö, we refurbish 11,000 square meters. 50% is pre-led to Cloetta and Media Evolution, with completion starting Q3 26, investment 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 Mosköten 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 built 3,400 square meters, and adding on the existing lease of 4,400 square meters. So, in total, 10,200 square meters and 97 million investment, including value of the land. Yield on cost 7.2% and completion in Q3 27. And a new project started at Sunna Nå 1226. It will be a mix of tenants and a flexible building for smaller industrious logistic. It's a good product where we have very low vacancy environment. Pre-let 30% to one tenant, investment 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 Malmö 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 four other possibilities in Malmö. Industrial at Spenbuckland, research and offices at Medellin site, housing at Kranen 5 and offices at Navolant 3. In Lund, we continue to develop the land at Brysselkålen in the southern part of Lund. At the Ideon site, we have three project possibilities for offices and laboratories. Two of them on these pictures, Ideontorget and Delta 2. And at Westerbro, 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 logistic and industrial segment. And just a summary of Q1 again. Rental income up 10%, operating surplus plus 9%, income for property management plus 12%, negative netletting minus 35 million, net debit to EBITDA at 10.5 times. We see good access to financing and we continue to grow this quarter an acquisition in Karlsbergsby. 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
If you wish to ask a question, please dial pound key five on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial pound key six on your telephone keypad. The next question comes from Tobias Kaj from Nordea. Please go ahead.
Thank you and good morning. First question regarding the EO 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 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 flavour of 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 that 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 50 million Swedish kronor relate to in this quarter.
Okay, I understand. Thank you. Also regarding the general occupancy rate, I think you previously have said that you expect some improvement during this year, and you're right in the report that 14% of the vacancy is already pre-leased. Does that indicate that we should expect roughly one percentage point increase in occupants 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 the project completions and terminations ahead. But I definitely see, as we have also given some notice before, that the rental income continues to increase.
Yeah, okay, thank you. And 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?
9 million Swedish kroner 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, thank you.
And the final question, I think you have a swap contract of 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?
It's spread out over Q2, Q3, Q4. It's not one contract.
Operator
Thank you very much for taking my questions.
Operator
The next question comes from Lars Norby from SEB. Please go ahead.
Good morning. I'm looking at that netletting chart, page seven, looking at the termination volumes, which is, as I think you pointed out, it's 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 in any so far? In that case, where geographically?
We have two leases with Postnode, one in Sweden of 2.5 million and one in Denmark of I think it was 7 million or something.
6-7 million Swedish kronor.
In Denmark no 4 million in Denmark so in total 6-7 and we have Alsell here in Malmö with minus 7 million and then just a few on minus 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 we we missed that that volume in the new leases on the termination side rick also mentioned it during the presentation but we had a tenant bankruptcies a few different not not one big one but those bankruptcies
have an annual rental value affecting the net lettings of between 7 and 8 million Swedish kronor 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 these discussions ongoing were prolonged or delayed have you had cases where they've been the discussions have actually been terminated terminated without having a signed contract related to what's happen geopolitically no not what i can know and as i mentioned the list of uh ongoing discussion have increased uh significantly since uh since uh february march so april and ahead looks uh
quite decent i would say Okay, thank you.
Operator
The next question comes from Frederick Stensved from ABG Sundal Collier. Please go ahead.
Thank you very much. Good morning. I have three questions, if I may. First one is a follow-up to one of the earlier questions about the non-occurring item in 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?
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. You talked about the bond market and the banking relationships, and they were still sort of eager to lend, etc. Have you seen any moves in terms of margins with bank discussions during these, call it, two 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, very good. Thank you. Then, last question on the project completions that you talked a little bit during the presentation, Enrika. Black Hornet and Post Hornet now completed in Q2. That's the way I understand it. At least Black Hornet, probably some movements 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 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 no large significant moment where things suddenly will contribute in a in a more smooth I would say is it similar for Postonet or is that more binary? Postonet has the largest contribution during Q2 and but also during the autumn continue.
Okay so a little bit in Q2 and that's fully or you know 70% at least given the occupancy rate from Q3 and onwards. Okay thank you.
We have something assigned for moving in in Q4 as well in Vostholnet but most of it now in Q2.
Operator
Thank you that's all for The next question comes from James Cattell from Green Street. Please go ahead.
I had a question on the EPRO CAPEX table on page 25 of the report. I noticed that tenant incentives have increased quite significantly by almost 100 million sec versus the first quarter last year. And also on the unanalyzed basis was higher than 4-year 25.
Is this going to be the run weight going forward for the whole of 26, or is this just due to 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 what EPRA calls the tenant incentives, It 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
As a reminder, if you wish to ask a question, please dial star 5 on your telephone keypad.
Are we any written questions?
I have seen nothing arriving digitally. Okay.
Operator
There are no more phone questions at this time. So I hand the conference back to the speakers for any closing comments.
OK, 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.
Yeah. Thank you, everyone, for listening in.
