Thank you.

Thank you.

Thank you. Welcome to today's presentation of our Q3 report.

My name is Fredrik Mässing, I'm the CEO of Prisma Properties.

I'm Martin Lindqvist, CFO.

Q3 has been a very good quarter for Prisma. We continue to grow with both profitable projects, but also very good acquisitions.

I'm happy to share this quarter that we have now doubled our earnings capacity since we listed the company in June '24. Almost the same when it comes to the value of our portfolio, from 6.5 at the IPO, up now to 12.5 billion SEK.

We also reached one target that we set last year in October, that within a 3-year period, our portfolio shall include 50% groceries and daily goods. Already now, after 12 months, we have achieved that goal.

Very pleased with the team and what they are doing with the acquisitions and projects.

As of Q3, we see that the EPRA NRV per share compound annual growth rate, if we calculate since the IPO, has increased annually by 14%, which is very close to our target of 15%, which is quite a high ambition, we're proud to be close to that target.

This quarter we have started four new projects totaling 200 million SEK. One in Næstved, Denmark where we are developing discount retail and groceries, and then three QSR projects: one in Ikast in Denmark, and then two in Sweden, in Sandviken and Strängnäs.

Both Sandviken and Strängnäs is previously building rights that we have owned for several years, I'm very pleased that we have activated them. Both rental income and NOI increased this quarter.

Rental income increased by 48% and NOI 43% up. Profit from property management increased with 28% up to 78 million SEK.

When it comes to property yield, we had a compression of 23 basis points. Now we're on 6.25%.

This valuation reflects the high interest and even increasing interest from Nordic and international investors within discount retail and groceries. Our WAULT, 8 years.

We have had an uptick of 0.3 years this quarter, from 7.7 to 8 years, and this is due to the latest acquisitions we made. Net letting this quarter, 11 million.

That's excluding the bankruptcy from NRG Pizza, which are the master franchise for Pizza Hut in Sweden. The bankruptcy of Pizza Hut has affected both the net letting, which is zero after the deduction of the Pizza Hut, but also have affected our occupancy rate with 1% down to 97.6%.

This is a short-term effect. We're planning to let all these units during Q4, and they are planning to open up all the restaurants during 2027.

As we see a continued rebate in the share price, the board has decided to increase the buyback program from 80 million to 140 million SEK.

Having a look at our top 10 tenants, we are growing together with Kesko and Rusta this quarter. Kesko is now our second largest tenant and we are planning to continue to grow with them on the Finnish market.

The same is for Rusta, but both in Sweden and Finland. If we have a look at the rental income split, now groceries and daily goods are 50%.

For the coming quarters and the years ahead, you are going to see that this segment is going to increase over time. This is due to several factors.

In Sweden, there are high interest from all grocery chains to establish new stores, both ICA, Lidl, and Willys, and we are planning to communicate several new projects the coming quarters. In Denmark, we are planning to grow with Netto, Salling Group, with both acquisitions and new development projects.

Then also the third factor is our largest building right in Segmented 1 in Kungens Kurva, which we are planning to communicate in Q4, now in November or December. We have an ongoing zoning process, we have signed an LOI with a tenant, and are looking forward to present our plans for this asset.

If we have a look at our WAULT, 8 years, as previous mentioned, uptick of 0.3 years. Now 88% of our leases mature 2030 and beyond.

We continue to defend our long WAULT by trying to renegotiate all lease agreements expiring before the end of '29, but also sign new long lease agreements, 10 years plus, with new tenants and in new acquisitions.

As Fredrik mentioned, the yield compression in the quarter versus Q2 was 23 basis points, representing a value uplift of 465 million SEK, or 3.8%. The yield compression is evenly spread across our different categories and also across our various geographies.

Looking to the left there, we see that Finland is now actually larger than Denmark, and looking on the graph to the right, we see that we have made 1.5 billion in acquisitions. We have made 700 millions in investments in held properties, we are well on track to our 1 billion target for the full year.

As of this quarter, quite an uptick in value changes as well, and we had some tailwind of the currency as well this quarter. We're landing on 12.5 billion as property value.

Currently we have 11 ongoing projects of an average yield on cost of 7.4%. In this slide, I would like to highlight the benefit of being a developer.

So 70% of our current portfolio is newly developed by us. We had a target that the EPC shall be 90% A to B before the end of 2028.

In today's market, in all the discussion, people focus on cash flows, and cash flows is important for Prisma, but also all other real estate companies. The benefit by doing development is that in the end, we get a modern portfolio, long cash flows, because we sign 10 to 20-year leases, and we had a very good EPC.

In the long run, we will benefit of our good EPCs and a very low deferred maintenance compared to our peers. When we have a look at our construction starts, we have started four new projects in Q3, and for the coming quarters, we are set to start seven new projects in total 717 million SEK.

We are, quarter by quarter, going to add many more new profitable projects to this list.

On the shareholders as of September 30th, we see that Per Arwidsson of Arwidsro has entered the owner list as the second largest owner after Alma Property, holding 9.1%. Other than that, we can comment that Prisma Properties now holds 1.4 million treasury shares representing 0.9% of the capital.

Rental income up 48%, that is mainly driven by the acquisitions we made in Finland early in the third quarter. It's also due to the projects that we started in Q2 that will have a full quarter effect now in Q3, and also a bit of projects that started during Q3 and also acquisitions, but that's a smaller part.

The main part here is the large acquisitions in Finland in the beginning of Q3. Looking at the NOI and surplus ratio, we see that the surplus ratio is on the soft side in Q3, only 86%.

That is mainly driven by the fact that we made an investment of roughly 2 million kronor in inspecting all our roofs in all our buildings to make sure that they are weather-tight. We had also a bad debt provision from the NRG Pizza bankruptcy.

If we adjust for those two factors, and as we usually do, also adjust for the NOI in Segmented 1, we actually are at the 90% surplus ratio that we usually report. On the income from property management, CA or central administration is on the run rate where it should be.

We are a bit front-heavy on the lending or borrowing side as we made a big renegotiation of the debt portfolio in Denmark at good rates in the realkredit system. A bit of uptick on the interest cost, and we also wrote down accrued arrangement fees of 2 million SEK in the renegotiated part in Denmark.

On the capital structure, 6.8 billion liabilities, representing a net LTV of 51%. With the renegotiation and we entered a 20-year loan in the realkredit system, we increased the debt maturity basically 2 years, now landing on 4.4 years.

Average interest stable versus Q2 where it was 4.19%, now 4.17%. The interest coverage ratio is stable at 2.3 times.

Please also note that we have made a correction. Due to a systematic calculation error, the average interest rate of the swap portfolio was understated from Q4 2025 through to Q2 2026.

See the official report for details. There is no other impact in the financial statements or other key figures other than in this table.

Earnings capacity came in a bit higher than what we promised in the Q2 report, and that is due to that we closed the projects in Ylivieska and we closed the acquisitions in Raasepori and Vaala earlier than we planned in Q2. The Q3 number is a bit higher than what we said in Q2, and that is offset by the exclusion of the rental value from NRG Pizza.

That is why we see the Q2 2027 number being at the same level as in the last report, we have some additions of projects and acquisitions, but also the exclusion of the 11 million from NRG Pizza, which is working the other way.

To sum up, Prisma is in a good position to continue to create value for the coming quarters ahead.

I would say it's all of these factors, but mainly we would like to have a better split in the portfolio. Initially, when we started Prisma, we were mainly focus on discount retail, and now in these days when the grocery chains wants to continue to grow, especially in Sweden and Denmark, it's a good thing that we have increased that exposure.

We want to be the preferred partner when they want to establish new stores.

Hi.

Hi.

Just to start off on the NRG Pizza units, what is your expectations of signing replacement leases here, and what sort of timeline can we expect?

We are planning to do that during Q4 this year, and and that all the new stores shall open up or the new restaurants shall open up during 2027.

Okay. Good.

Then on the value changes in the quarter, how much of that is sort of derived from yield compression and projects?

Almost all of it is yield compression. You see it going down by 23 bps in the quarter, the vast majority of it is the yield compression, and that's spread basically in mainly Denmark and Sweden, not so much Finland, but also across the categories.

We're making normal project profits, but that's not the large number here. It's the yield compression.

Also, if you could add some comments on what you're seeing in the transaction market, and given where rates are at now, how far are you willing to go on LTV?

When it comes to the market, we see today that the yields are going down, especially in Sweden and Denmark, an increased interest from both the Nordic and international investors. I'm happy at this moment that we also have this project development part of our company, that we now when we don't see so many attractive deals, we can focus on project developments on attractive yield on cost.

Okay. Thanks.

That's all for me.

Yeah.

Thank you.

Good morning. Hello.

I hope that you can see and hear me.

Yes.

Starting off with the target to reach a property value of 16 billion by 2028. How important is to reach that target in terms of absolute numbers?

I'm thinking that you're saying that the market is strong. Could you perhaps be open to sell properties to fund higher-yielding acquisitions in Finland and Denmark and higher-yielding projects or share buybacks instead of sort of reaching the 16 billion target?

That's correct. The 16 billion was not an ambition in itself to have an absolute asset number.

The profitability is the main point. We wanted to convey our sort of speed forward when we conveyed that 16 billion.

It was also at that time going from 8 to 16, a doubling of the asset value. We saw also that we could, within the current financial policy, if you calculate with the project profits and the value uplift from the inflation and the 55% LTV target, we should be able to make that 16 billion without going to the market for additional capital.

That was the basic idea behind that, is to show you the way forward and the tempo forward. We are ahead of that plan.

We are already at 12.5. We could, if we see good opportunity, we could absolutely sell a low-yielding to replace with high-yielding projects or acquisitions.

Any further comments?

Going to focus on profitability before volume, yes.

Okay. That makes sense.

In terms of the buyback program, you almost doubled the buyback program, and when you complete the program, do you think that you will renew it, or should we view this as a one-off program?

For now, you should view it as a one-off, and we will come back to any decisions by the annual meeting and the board regarding buybacks going forward. With the share price and the rebate where it is, it's a sound capital allocation.

It's not competing dramatically with projects or acquisitions. We can do both, the growth part and the buyback part.

That's a wise capital allocation as we see it.

Yeah. Thank you.

In the last months, you have made property acquisitions in Denmark, two quite minor, but to my understanding, you have sort of described Finland as a prioritized growth area in terms of acquisitions. How would you describe Denmark?

Would you say that that is a prioritized growth area or are the last two acquisitions more that you have found attractive properties at attractive yields?

I would say at the moment we see most attractive acquisitions in Denmark at the moment, because the spread is better in Denmark compared to Finland at the moment. It was a good thing that we decided to enter Finland last year that we now have built up a portfolio of around 2.7 billion.

If we started today, we would not be able to do that. At the moment, we see don't so many potential transaction on the Finnish market.

We can do some selective acquisitions of discount retail in Finland. Otherwise, we focus to buy or build up our portfolio in Denmark with especially with groceries, in combination with our pipeline in Denmark.

Okay. Thank you.

Then a question of the occupancy rate decline. Is that fully attributable to Pizza Hut or is it something else?

Even if you exclude the effect of Pizza Hut, which is 1.5% in relation to the current volume, it was 1.7 in Q2, but we have grown since then. The decline of 1% actually represent an increase if you exclude the effect of Pizza Hut.

I think we would be quite just a tenth above 99% actually if we exclude that one.

Okay. That's very clear.

Then finally from me, I just wanted to make sure that I heard it correctly regarding the Kungens Kurva property, but I think you said that the ambition is to give some more information in Q4. Did I understand it correctly?

Yes.

Correct, yeah.

Okay. All right, thank you for answering all my questions.

Thank you.

Thank you.

Hi. Hope you can hear and see me.

Yes.

Just a follow-up on the NRG properties. Is that one tenant taking all their premises, and will that likely be on the same rent level as NRG?

No, it's going to be a mix between tenants. We have shown a high interest from all the QSR tenants for these locations.

We are currently in discussion and negotiation with several QSR tenants.

There might be one or two that will take more than one entity, but no one will take all of it.

In terms of rent levels, would that be similar to NRG, or could we expect some improvements?

Maybe some improvements, but the assumption is that we can at least get the current rent level based on zero capex, we're going to get maybe an uptick depending on how much capex we need to put into these assets.

Okay. Would you assume any discounts for the first periods, or is it full on right away?

We can disclose that during Q4 when we have signed all the lease agreements. At the moment, we're in a discussion and negotiation, it's too early to say if or how many discounts going to be the first year.

Makes sense. You also been quite active in the transaction market so far this year.

What's your expected investment capacity over the next 12 months?

At the moment, we see few possible acquisitions that we can do in especially in Sweden and in Finland. We see also some selective acquisitions that we can do on the Danish market.

At the moment, we have put a little bit more focus on the project developments, especially when we have a very attractive pipeline with a high yield on cost. The main focus the coming quarters is going to be profitability before volume and focus on the right projects and the right acquisitions.

The net LTV as of Q3 is 51%. We have a policy of 55 with temporary deviation up to 60.

Within that we are able to reach the 16 billion, all things else alike. That gives an indication on where we can go.

Perfect. That's all for me.

Thank you.

Thank you.

During 2027. It depends on which tenant it is.

Our aim is that they open up as soon as possible, but what we can say today is during 2027 and in our point of view, as soon as possible.

SEK.

On top of what I mentioned during the analyst session with the wise capital allocation, there's also an element of taking care of the illiquidity in the share, both now and going forward, because we see that the uptick since we started the buyback program is important. That's a factor as well.

The main part is that we can buy nice assets at 30% rebates.

It's important for us that when we buy something, it's going to hold for a very long time. We want modern buildings with long and stable cash flows.

At the moment, we believe that we have the most Nordic modern portfolio, and we can't see any bigger acquisitions that a portfolio that suits Prisma. For us, the best strategy is continue with developments, but also do this selective acquisitions across all the markets.

I think up to the 16 billion that we talked about earlier in the analyst session is the same answer there, yeah. We have further capacity with the 51%.

We have a high share of the debt is secured by interest hedging, and of course we take the interest into consideration as everyone else when we make decisions about our growth. Here and now, our portfolio is delivering high cash flows, it's high-yielding.

Back in the day when we formed Prisma, we had an average interest of 5.3% versus the current 4.2%. We are equipped to handle a higher interest climate, but we will not make any foolish decisions on too high rates, of course.

Of course,

Can be the opposite.

This is the asset class you want to own in these times. Our tenants are robust and they're performing very well in good times, but also in bad times.

I think with high interest rates, you also see high inflation, and there you see an inflow of more customers to these discount stores.

Thank you.

Thank you.