Good morning, everyone, and welcome to our year-end presentation for 2025. Thank you all for taking time to listening in.

Today's presenter is our CEO, Leiv Synnes. Leiv will provide a thorough update and explain the SBB corporate structure, core holdings, finance, and capital structure.

I, Helena Lindahl, Treasury Director and IR, and our Finance Director, Daniel Tellberg, will join Leiv in the Q&A session afterwards and answer any questions you might have during that session that will follow the presentation. Now I'll turn over to you, Leiv.

Go ahead.

Thank you, Helena. I'm very proud to have completed the company's strategic transformation.

SBB has significantly reduced its leverage, simplified its corporate structure, and increased its transparency. SBB is now the leading social infrastructure investor in the in real estate in the Nordics.

We have market-leading companies in Public Property Invest, Sveafastigheter, and Nordikus, which fund themselves with investment grade ratings. Public Property Invest is now Europe's leading publicly traded operator in social infrastructure with assets of nearly 50 billion SEK.

Sveafastigheter is Sweden largest listed pure play residential company focused on high-demand growth regions in Sweden. Nordikus is a dedicated specialist in educational infrastructure and spanning the entire learning chain from preschool to universities.

We have achieved a transparent, well-defined core holdings, and SBB will provide future growth. Currently, my understanding is we is that we have a strong financial market, and the transaction market has pick picked up the momentum.

My belief is it this will lead to higher property prices in the times to come. It it's time to capture the tailwind that we see in the market for residential and community properties.

Remember, levers leverage works with you in times of tailwind. Now if we look on the the highlights for the period, I think it's very good for a real estate company to have growth in net operating income like-for-like, and the figure 7.4% is, according to me, a very good figure.

Also, it's very good that SBB have managed to lower the leverage, and the loan-to-value is now 50%. Maybe the biggest event for the quarter was the the sale of properties to Public Property Invest, where we received back shares in PPI PPI plus cash.

We have then fulfilled the transformation to a real estate investment company, and we have simplified the corporate structure in SBB, and we will take advantage of this going forward. A large part of the advantages come with lower cost in in Public Property Invest.

The rating in in Public Property Invest has increased to BBB+, which is a very strong rating, and they have the ability now to investment to raise fund with attracticle attractive terms. Also, there will be synergies with improved administration.

At the time of the transaction, we estimated the benefit of future cost savings due to better financial terms and lower admin costs to 3.8 billion. That is a very strong and good figure.

Also, lower cost in PPI will leads to improved cash flow in PPI, and a part of that cash flow will come to SBB as dividends. We estimate that 360 million per year will come to SBB as dividends going forward.

If you look on the the core holdings in SBB, the assets under management is 124 billion. We have, as I said earlier, market-leading companies.

We are very proud of that, and the companies have a good chance to outperform the peers in the years to come. If you take a look closer peek on Public Property Invest, a company that SBB knows now owns 40% of, we can see that asset base is 50 billion.

Half of that, around 25 billion, is elderly care and healthcare exposure, segments that will have good opportunities to grow in the future, and is very stable and [reliable?] .

My opinion is that Public Property Invest has a very solid asset core with a low risk. If you couple that with prudent financing, you get a very safe company.

If we move on to Sveafastigheter, they are performing well at the moment with a high like-for-like growth in in in revenues, but also in net operating income. As I said earlier, the 7.4% growth in net operating income in the like-for-like portfolio is very good.

Sveafastigheter has established themselves now in the SEK in euro market with issuing bonds with investment grade. My belief is that the revenues in Sveafastigheter will outperform inflation in the years to come.

Nordikus, the leading company and in educational infrastructure in Europe, has a very bright future. It was the first of the three companies that were established back in December 2022.

We have very strong and knowledgeable co-owner in Brookfield, which we are proud of. It uses their investment grade rating to issue very long-term bonds in the US market.

In 2025, the net investments in Nordikus amounted to 1.6 billion. They illustrate an ability to, as a market leader, to seize opportunities that arise in the market.

I'm confident that Nordikus will continue to pick up good deals in the market, and grow, and have a higher return on equity than similar peers. The final part of the core holdings is SBB Development.

It's a company that focus on focus on develop and thereafter divest properties that needs a special resources. To to succeed with that, we have some resources that are skilled in strategic work to convert potential into long-term value.

The plan is to develop all the properties in this company and sell them with a time period of 5 years. Already in 2026, we expect that some of properties will be ready to divest.

One example is elderly care properties in the Stockholm region. Besides the core holdings, we have also non-core holdings in SBB.

The biggest part of that is is a loan to Nordikus, which were given to Nordikus when the company was created. The second-largest part of the non-core assets is the holdings in a company which we co-own with Morgan Stanley.

It's called SBB Residential Property AB. On top of that, we have investment in various other companies which we could divest if we need proceeds to repay debt.

We have tried to help you and illustrate how the assets in SBB are built up. I think this picture illustrates the core holdings and also the non-hold non-core holdings.

If we start with the core holdings, you see Sveafastigheter, PPI, Nordikus, and SBB Development. The sum of those holdings is 33.5 billion.

Then you have the after that, you have the non-core holdings of 12.6 billion. As I said earlier, that is the loan to Nordikus, it's the joint venture we have with Morgan Stanley, and it's the other shares we hold.

One also good thing to know is the the low cost of that debt that we have in SBB. The annual coupon on the bonds in the parent is 1.9%.

The non-core holdings will be used to lower debt. One thing that have happened during the last years in SBB is an improved financial position and a much higher financial flexibility.

This cash position now is 5.2 billion. That is a figure excluding the liquidity that is in the consolidated Sveafastigheter.

Sveafastigheter has on its own a very strong financial situation with cash reserves. On top of that, if we look on the non-consolidated companies, we can see that both PPI and Nordikus have available cash and liquidity resources.

You can say if you take a look on the big SBB Group, you see a group with multiple sources of cash and liquidity resources, and an ability to raise further liquidity if needed. If we zoom back to SBB and look on other financial assets, you can see that we have interest-bearing assets of 5.8 billion.

The largest part of that is the loan to Nordikus, and that is a loan that matures in 2029, but can be, if needed, be monetized earlier. Then we have liquid assets.

If we look If you take the the end price in the previous quarter, the value of those liquid shares is 14.1 billion. The listed shares we don't intend to sell, but it add to financial flexibility.

To give you some aid on how we can proceed and what we intend to do going forward, we have created a picture. If you look on the middle part of the picture, you see that we have a liquidity position of 5.2 billion, and then we have undrawn credit facilities of 2.5 billion.

This is only SBB, excluding Sveafastigheter. You can see that the sum of those two capital sources exceed the maturities in 2026.

We we are not under financial stress anymore. We have a time to act, and we can act in a proper manner.

Also if we look on the bonds, you see them on the left side, and you can see that the cheapest bonds are actually the the bonds with long tenor, meaning that coupon that we have on an average coupon of 1.9% is unlikely to increase as we repay bonds. This is a additional page to help you to understand how we can manage the maturities in the upcoming years, that bond maturities in the upcoming years, but also give you an understanding that the core holdings will perform well and create NAV growth for SBB in the years to come.

If we start on the left side of the picture, if we add the cash position of 5.2 billion with the non-core holdings, you can see that we cover debt maturities almost to the end of 2028, giving us 3 years of runway. During during this 3 years, the core holdings are estimated to perform well based on the solid asset base and the good funding situation these companies have.

If we look on PPI as an example, we expected the growth in NAV for that company will be 3.2 billion during the next 3 years, and that is SBB's part of the of the growth, meaning that if the companies perform well and the value of the company increases, the loan-to-value in the SBB Group will decrease. On the right, you see an estimation of what the loan-to-value can be going forward.

SBB corporate structure leads to lower risk due to diversification between assets within the social infrastructure markets in the Nordic. It also give multiple funding options.

Only SBB could raise equity and debt in the past. Now SBB, PPI, Sveafastigheter, Nordikus all have access to equity, which a good and strong ability, both to to be able to raise equity when needed in financial stress, but also to grasp new opportunities in the market.

Also, PPI, Sveafastigheter, Nordikus all can issue bonds with investment grade bond investment grade rating. On top of that, we have all bonds in SBB with very low interest rates.

Together, you see a picture with attractive funding and low cost of capital for the SBB Group. If you combine that with a very strong asset base, Nordic infrastructure properties that will perform well in the upcoming year, coupled with low cost of debt, then you have a good chance to present a high return on equity in the years to come.

To summary, SBB is creating and developing market leaders in the Nordic infrastructure segments. These companies have the potential to outperform peers in profitability due to market position, access to capital, and streamlined organizations.

The higher degree of specialization further contribute to tenant long-term needs, which will give us more tenants and higher rental growth. We have demographic needs and trends in in the sectors that benefit SBB.

We believe that simplified corporate structure in core entities, focused platforms will really radically reduce the cost going forward and create value for the shareholders. The business cycle is is going to be strong, I believe, in the years to come.

We are past the bottom, and my expectation is that we will see solid growth in property values in the upcoming years. Also, it's good to remember that leverage works with you in the current environment when the property prices can be expected to grow in value.

All together, I think SBB has a high potential for NAV growth in core holdings, and that lead to a current strong possibility to have a high earnings per share.

Thank you. Thank you very much, Leiv, for those concluding remarks, and I think we can move forward to the Q&A session, please.

Yes, hi, guys, and thanks for taking my question and congratulation on the strong result. I just had a question on the non-core asset.

Leiv, when you say that, for example, the Nordikus loan could be monetized ahead of 2029, can you just explain how this can happen in practice? The second question is really on the JV on the residential AB.

What is the timing you think with Morgan Stanley there to unwind the structure? Thank you.

Good question, Othman. If we start with Nordikus, Brookfield is of course a very strong counterparty to have, and also Nordikus is a very strong company.

That open up possibility to speak with them to find a solution if we, for whatever reason, should need capital. If you remember, we have done this earlier in I think it was 2023.

The loan was bigger then, but then Brookfield helped us and we reduced the outstanding loan to Nordikus with, if I remember correctly, it was 8 8 billion. If needed, we can reach out to Brookfield and discuss it.

If we are not successful in those discussions, we can always go to third party and try to pledge the loan to Nordikus. Nordikus is a very strong investment grade company, and then the loan should have one notch lower rating than the company.

It's a assets that creditors like, it is a possibility to pledge it if needed. Then the second part of the question was the joint venture.

I think it's usual in the market that if you take in a part-owner, you have a shareholder agreement, and then you have a certain investment period. Then you have a breakup fee if you want to go out of that agreement in advance.

For us, it's no cost to repay the preference shares after mid-2027. That is the latest date I think when we will try to optimize the capital structure in the joint venture, and which leads to us for a more low-cost solution.

One solution is to repay the preference shares to Morgan Stanley and raise secured debt from the Nordic banks, and that cost at the moment is below 4%. Another solution is that we say that we focus on residential only through Sveafastigheter, and then we choose to divest the Morgan Stanley platform in order to get even more proceeds out of it and to be able to repay more bonds.

Okay. That's super super helpful.

That's it for me. Thank you very much.

Thank you very much, and good morning. Two quick questions on my end.

The first one, by the looks of it, it seems like the amount of credit facilities has increased in the quarter. Can you comment any on these facilities, please?

Yes, I think if I am correct, if you look only on SBB, the amount of credit facilities is similar, but we have used the proceeds from the sale to Public Property Invest to repay some of the drawn amount under the facilities, leading to the conclusion that we now have more unused credit facilities, but the total volume is the same. Then if you add the ability in Sveafastigheter, I think Sveafastigheter have improved their ability to raise or to get facilities from the local banks.

It could be so that the total figure, if you include Sveafastigheter, has increased.

Perfect. Thank you.

Very clear. Then on the operating cash flow in the quarter before changes in working capital, it was negative 1.6 billion approximately.

What mainly drove this negative figure? What made it 1.6 billion negative?

What was the main cause?

That's mainly related to the restructuring of the company due to the sale.

Restructuring costs, then?

Not restructuring cost itself, but effects from the restructuring of the company.

Thank you. That was my questions.

I think if you look on the future instead of the history, I think the ability for us to have a higher or better cash flow in the core holdings has improved. Most of the assets are now moved into effective companies: PPI, Nordikus, and Sveafastigheter.

They also fund themselves with cheaper debt than we could raise on our own. Of course, the cash flow in SBB is of course dependent on the dividend streams from the large entities.

If you look on how the cash flow comes from the properties itself, I think the cash flow creation in SBB has increased, or the possibility to create cash flow has increased.

Thank you very much, and we'll give the floor to Leiv to give concluding remarks.

Thank you. I think it's very good to be located in the Nordics with all the investments.

Nordics have a population growth, and also good economic development. The asset side in SBB, I think, will perform well due to the trends we see in the market.

Also, we see the business cycle at the moment works in our favor. Then we benefit from both low-cost debt in core holdings, but also low-cost debt in the parent.

We can combined a very strong business side or property side with attractive funding levels, and that gives us a strong opportunity to present growing results in SBB as the years come. Thank you.