Castellum — Call Transcript 2026

Good morning, everyone, and welcome to this presentation of Castellum's Q4 report. From our side, it's myself, Christoffer Strömbäck, Acting CFO, and Pål Ahlsén, CEO. There will be a Q&A session in the end of the webcast, and if you'd like to ask a question by phone, please dial pound key five on your telephone keypad and ask your question. So let's start. Please go ahead, Pål. Thank you, Christoffer, and thank you to all that are phoning in. I would like to start with saying that I've been here for almost six months, and, I've got a very warm welcome from all of our staff. I'm very thankful for that, but also from shareholders that have reached out with questions, challenging questions, and also very good advice. I hope that will continue going forward because that's, that's something that actually makes, Castellum better, being challenged by our shareholders. I really appreciate that. The focus for us the past six months has been, back to basics, the sort of the new strategy of Castellum, and the focus is crystal clear. Our target is to deliver a 10% return on equity over the business cycle. So that's, that's really been what we've been working on for the past six months. It's all about taking away things that are not irrelevant, that are unnecessary. It's all about leasing, decreasing our vacancy rate, increasing our occupancy rate. And it's about cost control, reducing our costs, both in administration but also in our operations. And we have also gone through our portfolio to see which properties are winners that we can keep in the long term, and properties that are struggling a bit more, where we either have to change our business plan or we actually have to leave them to someone else who has other ideas or other visions for the future than, than we have. But that has been really the focus for the past six months, and we call that back to basics. So one of the things we've done, which I mentioned, was decreasing costs. Unfortunately, we were in a situation where we had a bit of a too big of a cost base, which led to staff reduction. Unfortunately, during the autumn, 30 people had to leave Castellum, and that costed us around SEK 40 million during the Q4. We believe, though, that the savings will be roughly the same amount going forward due to that action. One of the key things for us is having room to maneuver when it comes to the portfolio, freedom to change the portfolio. Without that freedom or without that room to maneuver, it will practically be impossible for us to reach 10% return on equity. We had some right things or conditions in our bond agreements, which we addressed in the end of last year. It's called cessation of business, which sort of limited our room to maneuver. So we asked the bondholders if we could change those terms and conditions, and most of them agreed to that in December. But that also came in with a cost of roughly SEK 30 million, and that's also something that is in the Q4 report we are talking about today. Property values are down SEK 2.5 billion last year and SEK 1 billion in the Q4. And the main reason for the value changes are changes of expectations of future cash flow, which is mainly due to changes in long-term vacancy and rental prices or rental levels. In the Q4, SEK 1 billion in value changes, negative value changes, which is mainly Kista, SEK 0.5 billion. Kista is a small proportion of our portfolio. It's well known in Sweden, I would say. It's often written about it in the newspaper, and we have roughly 130,000 square meters in Kista, and it's around 2% of our portfolio. But it's struggling a bit with vacancy, and that's one of the challenges we have within our portfolio. And Finland, we have also changed sort of the expected long-term vacancy, which has led to a reduction in property value of roughly SEK 200 million. Net leasing for the year was -SEK 140 million. Most of... The negative event was actually in the Q1, where net leasing was down SEK 184 million, and that was mainly two events. It was Boozt down in Malmö and the bankruptcy of Northvolt. Since then, the quarters two, three, and four has actually been positive, but not as positive as the negative events of the Q1. So net leasing, SEK 140 million negative. Many people obviously ask if we can see a turnaround. We obviously hope so, but our focus is leasing, leasing, leasing. Time will tell if there has been a turnaround or not. One of the things we've launched now, actually in January, is what we call Castellum Business School. We believe that we need to raise the awareness within the company on how to understand the strategy, for example, but also to increase efficiency in the property management, in project management, and in leadership, and things related to the Castellum business. So we launched the Castellum Business School in January. All staff will get relevant education given their occupation, but also 150 people have been selected to do the Castellum Business School MBA, including calculation, leadership training, and so on and so forth. And we believe that that will be a positive contribution to our aim to reach 10% return on equity. And my final point here in the intro is the fact that the board is proposing share buybacks instead of dividend, and that's in line with our new policy for capital distribution. We think that's, that is a wise thing to do today when the share price is where it is in relation to the net asset value. We can actually skip, go to the next slide and just give you background on, Castellum. We are listed company, obviously. We have property value of roughly SEK 137 billion, where most of it is in major cities in Sweden, Stockholm, Gothenburg, and Malmö. But we have also have a strong presence in regional cities, growing cities like Örebro, Jönköping, and Västerås. And we have a portfolio also in Helsinki, in Finland, roughly SEK 6 billion, and SEK 5 billion in, Copenhagen. And then we have a pretty significant stake in a Norwegian company, office company, listed, where we have almost 38% of the shares. 5.3 million square meters, and a yearly contracted rent of SEK 9.3 billion and high sustainability focus. Christoffer? Yes, thank you. So summarizing the full year 2025 and comparing it with the same period last year, it is negatively affected by mainly divestments and higher vacancies. That is shown in sort of all of the results figures on this page. In addition to that, and as Pål mentioned, negative value changes of the properties, SEK 2.5 billion for the full year and SEK 1.1 billion for the Q4, -1.8% for the full year. This all summarizing gives a return on equity of 1.2%, which of course is much lower than our target of 10%. Net leasing, Pål also mentioned SEK -140, very negative 1 in the Q1, and then the three quarters after that, positive ones, in the Q4, SEK +26 million. Occupancy is fairly stable, 89.8%, roughly the same as last quarter. And we have, during the year, invested quite a lot, SEK 4.4 billion, combination of investing in our properties is the most of it. In addition to that, we also made some acquisitions during 2025. Pål mentioned a few one-offs, we have a couple of one-offs in Q4, isolated, both positive ones and negative ones, and we will try to go through all of them during this call. So looking at in more detail, in the like-for-like portfolio, income increased by SEK 26 million, that is 0.3%. Index contributed with SEK 140 million, but it's done offset by higher vacancies of SEK 190 million. Then we have one of the first one-offs, which is SEK 58 million in a one-off relating to a reversal of accrued annuity for the Northvolt. So that's a difficult one. We took the full net leasing, negative net leasing in Q1, but then now in Q4, we sort of concluded the final parts of the rental agreement with the bankruptcy estate. And then we had no cash effect, but an accrued one that we reversed during Q4. So that was a positive 58, 58 million SEK in Q4. Direct property costs, like-for-like, increased by SEK 58 million, corresponding to 2.7%. We have a mild winter. Now we're talking Q4, not what we have seen after Q4, but in Q4, a mild winter. The costs for heating and snow removal was actually decreased year compared to last year. But then we have that was offset by some higher rental losses. And we also, during Q4, isolated, took a couple of larger wasted projects or projects, projects that we are not expecting to go through anymore. Yeah, so one-offs, yeah, of that one recorded under maintenance in Q4. Central administration and property administration in total increased by SEK 54 million, and here we have another one-off. Pål mentioned it. Approximately 40 million of those 54 million is one-off relating to the staff reduction and head office reorganization. We can go to the next slide, please. Looking at the leasing renegotiations of SEK 279 million, that is 11% of the total lease stock up for renegotiation. Fairly the same rent as before, decrease of 0.1%, so very flat. But as I said, quite low volume of the total stock up for renegotiation. And the very large bulk of it, 62% or SEK 1.6 billion, is actually, yeah, sort of just prolonged. Prolonged at the same terms as before. Yeah, that is something I think is very much worth mentioning. Net leasing, we have been talking about already, and here we also have the figures or in the graph up to the right, showing that, as mentioned, the very big part of it was a -1 in Q1, and a very big part of that was the Northvolt bankruptcy. And then we have 3 positive quarters, not big figures, of course, but at least positive. Property values, we have been through most of the figures already, actually. So SEK 1.1 billion down in Q4. Stockholm stands for SEK 0.9 of that, and Finland, SEK 0.2. And as Pål mentioned, of the Stockholm, what SEK 0.9 billion down, SEK 0.5 billion is related to Kista. Valuation yield, fairly flat, 1 basis point up from last quarter, but you know, what? 5.64. Fairly stable as well. I think we take the next slide down. Looking at the financial highlights and our funding situation, overall, the funding markets where we are present, i.e., the banking market, the SEK bond market, the eurobond market, as well as the hybrid market, are all very favorable at the moment, I would say. So very good market conditions, credit margins at good levels and very much liquidity in all of the markets. Current spreads in the domestic or the SEK market is some 80 basis points for three-year money, some 110-150 for five-year money. Banks offer us typically five-year money, 110-130 basis points. Also at good levels, good volumes. I would say that most of them or maybe all of them would like to increase their positions. So that's very good. During Q4, isolated, we did not actually do that many funding actions. We made one bond, SEK 1 billion, 122 basis points, 5.25 years. Bought back some bonds at the same time. And then as Pål mentioned earlier, we made this consent solicitation, and overall we got the results that we were expecting, so that's good. Average interest rates 3.1%, stable compared to last year, actually down a little bit since the year before. And we see potential for actually reducing this a little bit going forward. Also on the financing side, we have a couple of one-offs. As, together, they are approximately SEK 50 million, and as Pål mentioned, 30 of them are connected to this consent solicitation, and then we have an additional list, approximately 20, for refinancing and early redemption, both coupled to loans and to bonds. Quite large one-offs in the financial items as well. On this slide, we have our financial key ratios. Very stable, I would say small changes compared to last quarter. Loan to value of 36.5% ICR 3.2. Good headroom to our policy, we have LTV policy of 40%, ICR policy of 3x, so good headroom there. At the beginning of this year, S&P confirmed our BBB, with stable outlook. That, that's about what has happened on the rating side. Debt maturities still stable, 4.3 years. We are quite happy with our funding situation and our key ratios stability. Then I hand over to you, Pål. Yeah, one of the things which we are very good at, I would say, within Castellum, and it's the reduction of energy consumption within our properties. So last year, we actually reduced the energy consumption in our portfolio with almost 7%. And that's one of the things I really like about Castellum, is this key focus on reducing costs for energy, but then also from a sustainability perspective. So that's something to be very proud of. 58% of our portfolio is sustainability certified, and we actually have 24% of our electricity self-generated. So high level of sustainability within Castellum, something to be proud of. Super. So, if you'd like to ask a question by phone, please dial pound key five on the telephone keypad and ask your question. And the first question comes from Jan Ihrfelt at Kepler. Okay, good morning. Thanks for taking my questions. I actually have four of them. I start with the sentiment on the rental market, office market. Have you seen any change in Q1 compared to Q4? Reluctant to speculate, and it's very early actually in the quarter to say anything about that. When I speak with the staff in the offices, I can say they still say that it's a challenging market. So our only focus is to do whatever we can to reduce vacancy. Okay. Next question. You had a net letting figure for the full year of minus SEK 140 million. I'm just a little bit asking about the overhang into 2026. How much of this SEK 140 million has already hit the PNL? We actually don't have a specific figure on that one. I mean, typically, there is a lag, as you know. In this case, it's very much so. We got a big portion, as you know, in Q1 was the Northvolt, and we actually paid rent for the full year 2025. Not all of the volume, but quite a lot of it. That is coming in with full effect in 2026. But we don't have a- Okay. Figure to give on that. No, no, exactly. Okay. And bringing down vacancies, you know, how 10%, and I'm just looking at some kind of time frame here. When, at what point in time would you get down to 5%? Have you any time frame there? That's an impossible question to answer, and it's... We are not doing that type of forecast. But as I think I mentioned that in the Q3 report, that we know that it will probably be a bit worse before it becomes better in relating to your previous question. But we are not making any forecasts when it comes to vacancy ratios. ... Okay, and my last question regards the, the one-off, the SEK 40 million. And where is it recorded? Is it all in central administration, or is it split to some other lines? It's a split between central administration and property administration. Yeah, and the ratio between them? I don't have that ratio, actually. I can come back on that. Okay. Thanks for taking my questions. Thank you. The next question, Lars Norrby, SEB. Well, thank you, and good morning. Part of your back to basic strategy is to, I quote, "divest non-core assets." So far, since you assumed the role as CEO, Pål, you haven't done that much. I think there was some SEK 300 million completed in Q4, and you announced through a press release an additional SEK 500 million, which in the context of a portfolio of SEK 137 billion, is not that much. And then you also mentioned that you made some changes to your bond terms in the Q4. My first question is, is there anything now holding you back from finding significant divestments? No, I wouldn't say so. The transaction market is quite vivid, I would say. Christoffer mentioned that the market for lending money is very favorable right now, so it's a huge interest actually in making transactions in the property world. And we see we have lots of discussion, people reaching out to see to find a deal. But nowadays, if I may, reminisce of how it was 30 years ago, transactions went much faster than they do today. The due diligence phase in making transactions are so much more due diligent, so to say. So even if I wish that we had a higher pace, that's not how the business works nowadays. But I can assure you that we are doing everything we can to high, to reach this target of high, of a high transaction. Okay, and my second and final question is, what is a non-core asset in your portfolio? To be quite honest, I don't think I've never, ever used the word core or non-core, so I never said that. Our core assets are the ones we have, I would say. Some of them are perhaps giving a too low rate of return, given our expectations of the future. So our core assets are actually commercial real estate in Sweden. It might be hotels, it might be offices, it might be logistics or light warehouses, and so on and so forth. So I never actually used the words core or non-core. So we are more, let's say, looking at what we believe that they can give us in return going forward. And those who are helping us in reaching our target, that's our core assets. That's not office, that's not that, that's not this. So that's how we're thinking about that. Okay. Thank you. Thank you, Lars. Next question from Nadeem at UBS. Hi, good morning. Can you hear me clearly? Yes. Yes. Wonderful. Thank you both for taking my questions. I've got a few, and I'll ask them one by one, if that's okay. So firstly, you're saying on your capital distribution, you are now allocating your full distribution to buybacks rather than dividends. And I think, Pål, you mentioned, quote, unquote, "simple mathematics" in your presentation. So if there is simple ways to split it, then is your thinking that if you're trading at a discount, you then do buybacks, and if you're trading at a premium or closer to that, you're doing dividends? Or is there a more, is there a more nuanced way that you're looking at this distribution policy going forward? It isn't really that simple. I would say it's really that simple, even if you can make it a bit more complicated. But now the discount is quite big, right? It's 30%-33%, and then you don't have to think about it that much. But once, and hopefully when that gap closes, we have to have a deeper discussion when it's time to switch to dividend from share buyback. Got it. Okay, and a quick follow-up to that as well. What is your exact execution plan on the buybacks through the year? So I know it's SEK 1.2 billion. It isn't a small proportion of your market cap, so how do you propose you perform the buybacks this year? Our thinking is that we should wait until after the AGM. We think that we should adopt the financial results for 2025, i.e., the part of that results that we are distributing to our shareholders. So we will wait until AGM and we will come back with details after that. Okay. Got it. Very clear. Thank you. My second question is, I won't be using the word core and non-core, as Pål mentioned, but, looking at, some pain points in the portfolio, such as, Kista in Finland, where you've taken more substantial write-downs, in values, and also they have elevated vacancies. What is your thinking on these, regions and generally your, your focus on trying to become more Sweden-centric? I think that's something you mentioned in your Q3 report. ... And more Sweden-centric, I wouldn't write that. I would say continue. We are already Swedish-centric, so that is not a change, I would say. Well, Kista, it's a small proportion of our portfolio. It's very well known in Sweden, that's why we highlight it. It's struggling, it has been struggling for a long time. We are picking our brains, finding a way to reduce vacancy and make a turnaround in Kista. And I would be quite honest to say that that's not an easy nut to crack, but we are really working on that. Vacancy, 22% in our portfolio, probably in Kista, perhaps more than 30%, so it's a challenging market. But again, small proportion of our portfolio, and again, we are really picking our brains, trying to figure out how to make a turnaround, at least for our properties in Kista. Finland, yeah, it's also a challenging market, just as it has been in Stockholm, Gothenburg, and Malmö, and Copenhagen, and to some extent, also in Oslo. Again, we are also trying there to find ways to reduce vacancy and, keeping rent levels stable, just as we do for Kista. That's very clear. Thank you. My third question is then moving to a different part of the Nordic region, Entra and your stake there. I think you mentioned that it's a fairly attractive market in Norway at the moment, despite the swap rates being slightly higher, inflation is more elevated relative to, say, Sweden and Finland. So what is your thinking on the Entra stake, going into this year? I know there was an increase in the stake, in Q1 last year, so are there any thoughts on this? I really like Entra. Entra is a great, great company, and I think Castellum can probably learn quite a bit from Entra. So I appreciate the cooperation we have with Entra. Obviously, it's not an optimum situation, I think, where we have the stake we have. Balder has its stake it has. It's a low free flow for other shareholders, so perhaps it's not the best long-term solution. Don't have any answers to the long-term solution today, not at all. But what one should say is that Entra is performing quite well, so it's not hurting us in any way, having that stake in Entra, because it's a good company. They have a nice portfolio, nice management, and so it's not something that is dragging us down, not at all. The contrary, actually. Okay, very clear. My final question is, on your recent leasing of the Infinity building in Hagastaden. I know, there's been some talk in the press of who the tenant may be, but could you provide some more details, potentially, on the yields, the rent levels, and more generally, the discussions you've been having on letting? Are they with large tenants and public companies, or are they increasingly with smaller companies and potentially SMEs? Actually, we cannot elaborate at all regarding. We've sent out the information we can send out, and that's been requested from the tenant. But we will disclose more when they have either used or not used the option to reduce the number of square meters they will have, and then we will provide you with the more information. But obviously, we're very happy that Ericsson has selected our building, Infinity. It will be a great building, and I think Ericsson will have a nice time sitting there in Hagastaden in our building. Okay, very clear. And just to follow up on the size of maybe the tenants that you're speaking to more generally in the markets for lettings. Are they larger tenants and companies, or do you think that the general size of those companies and Is there more skewed to SMEs? Our portfolio is a broad palette of very different type of buildings. We just don't have office, we have other type of buildings as well. So we are speaking to a very broad palette of Swedish businesses. Okay, that's very clear. Thank you. Thank you. Next question, Adrian from Deutsche Bank. Good morning, both. Basically, I had two questions. The first one is on the consent solicitation process for your bonds. As you mentioned, you got approval from majority of your bondholders. However, there is still one particular bond, the 2029s, which actually has even more constraining language compared to the other ones, which hasn't received consent. Hence, I was wondering what you intend to do with this particular bond, because I guess the 2026, in any case, is due in the very short term. Yeah. I mean, so what we mean when we say that we have a better flexibility now, is, of course, that we, the volume outstanding that is, having this language is much lower. Should we, in the future, sometime, have transactions on the table, then we will manage that at that point in time. Okay. So you may, at some point, you know, revisit the content vis-à-vis this bond when you sell the assets? ... Yeah, exactly. I mean, we, we will, we will have a look at that, at that point in time. Okay. Thank you. And my second question is about the hybrid. I was wondering what and when you intend to do regarding the non-call 26? I mean, we are first of all very happy with our hybrid. It's, as you know, running with the 3.125% coupon, which is of course very, very good level. So we are happy about that. I mean, we like the instrument, we like the levels we have today, and do not want to speculate about future actions regarding the hybrid. Okay. Thank you very much. Thank you. So next question, Pranava from Barclays. Thank you for taking my question. I have a couple of follow-ups on what you just said regarding the consent solicitation. With the 2026 and the 2029s together, that's roughly 30% of all your bonds outstanding. Clearly that is not giving you the amount of flexibility that you suggested. If I could ask, what was driving the timing of the consent solicitation that you did last year, if you had not lined up any specific action immediately? The second question regarding your hybrid, the hybrid language, of course, doesn't have the same kind of constraints, but I was wondering if there's anything that would potentially require consent solicitation as well? To the first question, back to the transaction market and the transaction, it's also that transactions takes time. So, and going into transactions, it's very helpful with better visibility of our situation. So that is probably the answer to the first question. And now we think that we have that flexibility. I mean, the results were pretty spot on what we were expecting, so we are happy about that. At 26, I mean, that's very close, it's coming up now in the September, I think it is. Thank you, and regarding the hybrids? Sorry, I didn't get. I got the question. Regarding the hybrids, is there any language in there that would accelerate or impede your future, you know, change in portfolio? No language in the hybrid, what I'm aware of, no. Okay, thank you very much. Thank you. So next question from John at Kempen. Hi, good morning. Just on the net letting, are you seeing any differences between geographies and asset classes in terms of terminations as well as leasing? I think, I think in general, what one can say is that the market that has been struggling in the downturn that we have been experienced is, first of all, office and in major cities, in bigger cities. We have had a softer downturn in regional cities, where it has perhaps not been a downturn. So, offices in major cities like Stockholm and Gothenburg and Malmö, then in Copenhagen and Helsinki, is struggling a bit more than we can see in regional cities. And the positive turn in Q3 and Q4, is that skewed to any specific asset class or geography? Could you repeat the question? So that net letting turning positive in Q3 and Q4, is that driven by any specific region or specific asset class? No. Clear. You mentioned that you're looking into improving the occupancy in more challenging markets. So what ways are you seeing in your first look into that? And is it- ... can it be easily solved with, say, CapEx, or does it even make sense to invest CapEx into these more structurally challenging buildings? I think it's very difficult to answer generally what to do. It has to be case by case. In some cases, it makes sense to upgrade the unit and adapt it to the wishes of the tenant. In other cases, it might be giving a discount. In other cases, it's just answering faster than we've done historically. So it's very different, and you have to look it on a case by case, on a case by case. But what we've said is that we have to be more flexible, we have to be faster, and we have to really listen into what the clients are wishing for, so that we can grab the clients that are out there before our competitors grab them. Just maybe to ask it differently, do you see the CapEx spend in, say, 2026, 2027 to be higher than 2024, 2025? ... reluctant to speculate, but I would say it's probably will be around the same level as this year. Okay. That's clear. Thank you. Thank you. Next question, Paul May, Barclays. Hi, guys. Thanks for the presentation. Just, I got three questions, two are linked, so I'll ask those together. You've obviously mentioned you're focused on leasing, leasing, leasing. I just wondered what your view is on the rental value per square meter, i.e., are you focused purely on reducing vacancy, in which case you'll allow rent concessions, lower rents to come through? Or are you focused on rent per square meter, in which case you'll happily have a higher vacancy holding out for that higher rent. So just to get a sense there. And then linked to that, can you give us some color on where your current portfolio rental income sits versus market rent? You know, if all your tenants left and you relet all of your assets today, would that be at a higher or lower rent than you've currently got in the portfolio, assuming that there were tenants available for that? I've got another question, but I'll ask in a second. Thanks. Very good questions. If I may answer the second one first. It's a difficult one, but I appreciate the question, and it would be, it has to be booked a bit on the speculation side from my side. But I would say that we probably would reach roughly the same level as we have today. If every one of our tenants left, we would have some premises that would be rented on a high level, some on a lower level, but on average, roughly about where we are today. And the first one, could you repeat that one? Yeah. It's just, it's just looking and thinking how, how you think about leasing. which is sort of the focus. You know- Is it just reducing vacancy and therefore you give rent concessions? Or is it we're focused on the rental level? It's completely- In which case we live with higher vacancy. It's completely dependent on actually the market and sort of the demand in the market. In some markets, we really have to give concessions, lower the rent to get a tenant. It's better to have cash flow and not having cash flow. But in other market, it's better to wait because there, we know that there's demand there, and we write a lease contract over five or seven years, then we don't want to lock in a too low rent level, obviously. So again, boring answer, understand that, but it's really on case by case, depending actually on the particular building we are looking at. It's not dependent on the particular market or asset class, it's really on case by case. That's one of the things we've really been talking about here since back to basics, that we really need to have smart thinking about every premises we have within the portfolio. Yeah, I mean, similar to what we're seeing in other markets, as you say, it's very asset specific, not necessarily market or sub-market specific. Just the final one, you mentioned Entra is not hurting, but just looking at their reporting, vacancy's been increasing, and its earnings yield is much lower than your earnings yield. So you could argue that capital would be better spent selling Entra and basically buying back your shares. You announced, obviously, the share buyback today. I just wondered how you think about that and where the comment around Entra is not hurting us, it's benefiting us, when actually, if you look at the numbers, you could argue the opposite, that it would be better to rotate that capital elsewhere. Thanks. I would agree to some extent to what you're, what you're saying, that we could probably, if we had the cash, use it wisely as well, not just having it in Entra. Entra is also in a market where demand has fallen a bit, compared to as it was before, but not as much perhaps as in Stockholm or Copenhagen. So I was tilting more towards that when I said that Entra is not hurting us, at least. Okay. So the underlying market is a bit better positioned than some of your other markets. Is that? I would say so, yes. Yes. Yeah. Okay, perfect. Thank you very much. Thank you. Thank you. Next question, James from Green Street. Good morning. You mentioned some one-off costs associated with canceling projects. Would you possibly be able to let me know if the number of projects canceled was higher than usual? Maybe what the nature of these projects was, how much CapEx was associated with this, and then maybe how or why you made the decision to cancel these projects? I mean, that was only stage ones, that is, of course, something that is we are always doing, sort of going through actually every quarter. But then, of course, sometimes you put it more on a spot, not any specific areas or. So more business as usual, but a little bit higher than usual. Okay. Thank you. Thank you. Next question, Fredrik Stensved, ABG. ...Thank you. Morning. I have two follow-ups on the transaction market comment you made earlier, Pål, where you alluded to a relatively strong market on the sort of back of cheap financing. So the first one is, are you able to call out any specific segments in your current portfolio, which might be up for sale and where you believe interest would be high in the market? And secondly, looking at the transaction market and the interest and your decision to do share buybacks today, do you believe it is possible to find sort of, you know, acquisitions of decent volume or size in the direct market, which are more attractive than your own share at this moment? Thanks. Yeah, thank you. I think the transaction market, as I said, it's driven now by a lot of funding being available to low spreads. So that's the main, main driver. But also, I think there's been a couple of years where companies has not done that many transaction, and that's also driven up demand a bit. They see potential now for restructuring their portfolios. If there are any specific parts of our portfolio which has extra interest from potential buyers? No, I can't really say that at this stage, actually. No, we have lots of discussions with people, and it's a broad palette of different types of discussions, I would say. And now I have to ask you to repeat the other questions. Yes, sure. So the second one is, on the back of your decision to do share buybacks and the current discount NAV and the transaction market today, do you believe it is possible to find acquisitions in the direct market, which are more attractive than your own share? Possible, but difficult. No, that's good enough. Thank you. Thank you. Thank you, Fredrik. That was actually the last question for today. Thank you all for listening, and have a great day.

Speaker 1: Good morning, everyone, and welcome to this presentation of Castellum's Q4 report. From our side, it's myself, Christoffer Strömbäck, Acting CFO, and Pål Ahlsén, CEO. There will be a Q&A session in the end of the webcast, and if you'd like to ask a question by phone, please dial pound key five on your telephone keypad and ask your question. So let's start. Please go ahead, Pål. Good morning, everyo ne, and welcome to this presentation of Castellum's Q4 report. good morning everyo ne and welcome to this presentation of castellum's q4 report From our side, it's myself, Christoffer Strömbäck, Acting CFO, and Pål Ahlsén, CEO. from our side it's myself christoffer strömbäck acting cfo and pål ahlsén ceo There will be a Q&A sessi on in the end of the webcast, and if you'd like to ask a question by phone, please dial pound key five on your telephone keypad and ask your question. there will be a q&a sessi on in the end of the webcast and if you'd like to ask a question by phone please dial pound key five on your telephone keypad and ask your question So let's start. so let's start Please go ahead, Pål. please go ahead pål

Speaker 7: Thank you, Christoffer, and thank you to all that are phoning in. I would like to start with saying that I've been here for almost six months, and, I've got a very warm welcome from all of our staff. I'm very thankful for that, but also from shareholders that have reached out with questions, challenging questions, and also very good advice. I hope that will continue going forward because that's, that's something that actually makes, Castellum better, being challenged by our shareholders. I really appreciate that. The focus for us the past six months has been, back to basics, the sort of the new strategy of Castellum, and the focus is crystal clear. Our target is to deliver a 10% return on equity over the business cycle. So that's, that's really been what we've been working on for the past six months. Thank you, Christoffer, and thank you to all that are phoning in. thank you christoffer and thank you to all that are phoning in I would like to start with saying that I've been here for almost six months, and, I've got a very warm welcome from all of our staff. i would like to start with saying that i've been here for almost six months and i've got a very warm welcome from all of our staff I'm very thankful for that, but also from shareholders that have reached out with questions, challenging questions, and also very good advice. i'm very thankful for that but also from shareholders that have reached out with questions challenging questions and also very good advice I hope that will continue going forward because that's, that's something that actually makes, Castellum better, being challenged by our shareholders. i hope that will continue going forward because that's that's something that actually makes castellum better being challenged by our shareholders I really appreciate that. i really appreciate that The focus for us the past six months has been, back to basics, the sort of the new strategy of Castellum, and the focus is crystal clear. the focus for us the past six months has been back to basics the sort of the new strategy of castellum and the focus is crystal clear Our target is to deliver a 10% return on equity over the business cycle. our target is to deliver a 10% return on equity over the business cycle So that's, that's really been what we've been working on for the past six months. so that's that's really been what we've been working on for the past six months It's all about taking away things that are not irrelevant, that are unnecessary. It's all about leasing, decreasing our vacancy rate, increasing our occupancy rate. And it's about cost control, reducing our costs, both in administration but also in our operations. And we have also gone through our portfolio to see which properties are winners that we can keep in the long term, and properties that are struggling a bit more, where we either have to change our business plan or we actually have to leave them to someone else who has other ideas or other visions for the future than, than we have. But that has been really the focus for the past six months, and we call that back to basics. So one of the things we've done, which I mentioned, was decreasing costs. It's all about taking away things that are not irrelevant, that are unnecessary. it's all about taking away things that are not irrelevant that are unnecessary It's all about leasing, decreasing our vacancy rate, increasing our occupancy rate. it's all about leasing decreasing our vacancy rate increasing our occupancy rate And it's about cost control, reducing our costs, both in administration but also in our operations. and it's about cost control reducing our costs both in administration but also in our operations And we have also gone through our portfolio to see which properties are winners that we can keep in the long term, and properties that are struggling a bit more, where we either have to change our business plan or we actually have to leave them to someone else who has other ideas or other visions for the future than, than we have. and we have also gone through our portfolio to see which properties are winners that we can keep in the long term and properties that are struggling a bit more where we either have to change our business plan or we actually have to leave them to someone else who has other ideas or other visions for the future than than we have But that has been really the focus for the past six months, and we call that back to basics. but that has been really the focus for the past six months and we call that back to basics So one of the things we've done, which I mentioned, was decreasing costs. so one of the things we've done which i mentioned was decreasing costs Unfortunately, we were in a situation where we had a bit of a too big of a cost base, which led to staff reduction. Unfortunately, during the autumn, 30 people had to leave Castellum, and that costed us around SEK 40 million during the Q4. We believe, though, that the savings will be roughly the same amount going forward due to that action. One of the key things for us is having room to maneuver when it comes to the portfolio, freedom to change the portfolio. Without that freedom or without that room to maneuver, it will practically be impossible for us to reach 10% return on equity. We had some right things or conditions in our bond agreements, which we addressed in the end of last year. Unfortunately, we were in a situation where we had a bit of a too big of a cost base, which led to staff reduction. unfortunately we were in a situation where we had a bit of a too big of a cost base which led to staff reduction Unfortunately, during the autumn, 30 people had to leave Castellum, and that costed us around SEK 40 million during the Q4. unfortunately during the autumn 30 people had to leave castellum and that costed us around sek 40 million during the q4 We believe, though, that the savings will be roughly the same amount going forward due to that action. we believe though that the savings will be roughly the same amount going forward due to that action One of the key things for us is having room to maneuver when it comes to the portfolio, freedom to change the portfolio. one of the key things for us is having room to maneuver when it comes to the portfolio freedom to change the portfolio Without that freedom or without that room to maneuver, it will practically be impossible for us to reach 10% return on equity. without that freedom or without that room to maneuver it will practically be impossible for us to reach 10% return on equity We had some right things or conditions in our bond agreements, which we addressed in the end of last year. we had some right things or conditions in our bond agreements which we addressed in the end of last year It's called cessation of business, which sort of limited our room to maneuver. So we asked the bondholders if we could change those terms and conditions, and most of them agreed to that in December. But that also came in with a cost of roughly SEK 30 million, and that's also something that is in the Q4 report we are talking about today. Property values are down SEK 2.5 billion last year and SEK 1 billion in the Q4. And the main reason for the value changes are changes of expectations of future cash flow, which is mainly due to changes in long-term vacancy and rental prices or rental levels. It's called cessation of business, which sort of limited our room to maneuver. it's called cessation of business which sort of limited our room to maneuver So we asked the bondholders if we could change those terms and conditions, and most of them agreed to that in December. so we asked the bondholders if we could change those terms and conditions and most of them agreed to that in december But that also came in with a cost of roughly SEK 30 million, and that's also something that is in the Q4 report we are talking about today. but that also came in with a cost of roughly sek 30 million and that's also something that is in the q4 report we are talking about today Property values are down SEK 2.5 billion last year and SEK 1 billion in the Q4. property values are down sek 2.5 billion last year and sek 1 billion in the q4 And the main reason for the value changes are changes of expectations of future cash flow, which is mainly due to changes in long-term vacancy and rental prices or rental levels. and the main reason for the value changes are changes of expectations of future cash flow which is mainly due to changes in long-term vacancy and rental prices or rental levels In the Q4, SEK 1 billion in value changes, negative value changes, which is mainly Kista, SEK 0.5 billion. Kista is a small proportion of our portfolio. It's well known in Sweden, I would say. It's often written about it in the newspaper, and we have roughly 130,000 square meters in Kista, and it's around 2% of our portfolio. But it's struggling a bit with vacancy, and that's one of the challenges we have within our portfolio. And Finland, we have also changed sort of the expected long-term vacancy, which has led to a reduction in property value of roughly SEK 200 million. Net leasing for the year was -SEK 140 million. Most of... In the Q4, SEK 1 billion in value changes, negative value changes, which is mainly Kista, SEK 0.5 billion. in the q4 sek 1 billion in value changes negative value changes which is mainly kista sek 0.5 billion Kista is a small proportion of our portfolio. kista is a small proportion of our portfolio It's well known in Sweden, I would say. it's well known in sweden i would say It's often written about it in the newspaper, and we have roughly 130,000 square meters in Kista, and it's around 2% of our portfolio. it's often written about it in the newspaper and we have roughly 130,000 square meters in kista and it's around 2% of our portfolio But it's struggling a bit with vacancy, and that's one of the challenges we have within our portfolio. but it's struggling a bit with vacancy and that's one of the challenges we have within our portfolio And Finland, we have also changed sort of the expected long-term vacancy, which has led to a reduction in property value of roughly SEK 200 million. and finland we have also changed sort of the expected long-term vacancy which has led to a reduction in property value of roughly sek 200 million Net leasing for the year was -SEK 140 million. net leasing for the year was -sek 140 million Most of... most of The negative event was actually in the Q1, where net leasing was down SEK 184 million, and that was mainly two events. It was Boozt down in Malmö and the bankruptcy of Northvolt. Since then, the quarters two, three, and four has actually been positive, but not as positive as the negative events of the Q1. So net leasing, SEK 140 million negative. Many people obviously ask if we can see a turnaround. We obviously hope so, but our focus is leasing, leasing, leasing. Time will tell if there has been a turnaround or not. One of the things we've launched now, actually in January, is what we call Castellum Business School. The negative event was actually in the Q1, where net leasing was down SEK 184 million, and that was mainly two events. the negative event was actually in the q1 where net leasing was down sek 184 million and that was mainly two events It was Boozt down in Malmö and the bankruptcy of Northvolt. it was boozt down in malmö and the bankruptcy of northvolt Since then, the quarters two, three, and four has actually been positive, but not as positive as the negative events of the Q1. since then the quarters two three and four has actually been positive but not as positive as the negative events of the q1 So net leasing, SEK 140 million negative. so net leasing sek 140 million negative Many people obviously ask if we can see a turnaround. many people obviously ask if we can see a turnaround We obviously hope so, but our focus is leasing, leasing, leasing. we obviously hope so but our focus is leasing leasing leasing Time will tell if there has been a turnaround or not. time will tell if there has been a turnaround or not One of the things we've launched now, actually in January, is what we call Castellum Business School. one of the things we've launched now actually in january is what we call castellum business school We believe that we need to raise the awareness within the company on how to understand the strategy, for example, but also to increase efficiency in the property management, in project management, and in leadership, and things related to the Castellum business. So we launched the Castellum Business School in January. All staff will get relevant education given their occupation, but also 150 people have been selected to do the Castellum Business School MBA, including calculation, leadership training, and so on and so forth. And we believe that that will be a positive contribution to our aim to reach 10% return on equity. And my final point here in the intro is the fact that the board is proposing share buybacks instead of dividend, and that's in line with our new policy for capital distribution. We believe that we need to raise the awareness within the company on how to understand the strategy, for example, but also to increase efficiency in the property management, in project management, and in leadership, and things related to the Castellum business. we believe that we need to raise the awareness within the company on how to understand the strategy for example but also to increase efficiency in the property management in project management and in leadership and things related to the castellum business So we launched the Castellum Business School in January. so we launched the castellum business school in january All staff will get relevant education given their occupation, but also 150 people have been selected to do the Castellum Business School MBA, including calculation, leadership training, and so on and so forth. all staff will get relevant education given their occupation but also 150 people have been selected to do the castellum business school mba including calculation leadership training and so on and so forth And we believe that that will be a positive contribution to our aim to reach 10% return on equity. and we believe that that will be a positive contribution to our aim to reach 10% return on equity And my final point here in the intro is the fact that the board is proposing share buybacks instead of dividend, and that's in line with our new policy for capital distribution. and my final point here in the intro is the fact that the board is proposing share buybacks instead of dividend and that's in line with our new policy for capital distribution We think that's, that is a wise thing to do today when the share price is where it is in relation to the net asset value. We can actually skip, go to the next slide and just give you background on, Castellum. We are listed company, obviously. We have property value of roughly SEK 137 billion, where most of it is in major cities in Sweden, Stockholm, Gothenburg, and Malmö. But we have also have a strong presence in regional cities, growing cities like Örebro, Jönköping, and Västerås. And we have a portfolio also in Helsinki, in Finland, roughly SEK 6 billion, and SEK 5 billion in, Copenhagen. And then we have a pretty significant stake in a Norwegian company, office company, listed, where we have almost 38% of the shares. We think that's, that is a wise thing to do today when the share price is where it is in relation to the net asset value. we think that's that is a wise thing to do today when the share price is where it is in relation to the net asset value We can actually skip, go to the next slide and just give you background on, Castellum. we can actually skip go to the next slide and just give you background on castellum We are listed company, obviously. we are listed company obviously We have property value of roughly SEK 137 billion, where most of it is in major cities in Sweden, Stockholm, Gothenburg, and Malmö. we have property value of roughly sek 137 billion where most of it is in major cities in sweden stockholm gothenburg and malmö But we have also have a strong presence in regional cities, growing cities like Örebro, Jönköping, and Västerås. but we have also have a strong presence in regional cities growing cities like örebro jönköping and västerås And we have a portfolio also in Helsinki, in Finland, roughly SEK 6 billion, and SEK 5 billion in, Copenhagen. and we have a portfolio also in helsinki in finland roughly sek 6 billion and sek 5 billion in copenhagen And then we have a pretty significant stake in a Norwegian company, office company, listed, where we have almost 38% of the shares. and then we have a pretty significant stake in a norwegian company office company listed where we have almost 38% of the shares 5.3 million square meters, and a yearly contracted rent of SEK 9.3 billion and high sustainability focus. Christoffer? 5.3 million square meters, and a yearly contracted rent of SEK 9.3 billion and high sustainability focus. 5.3 million square meters and a yearly contracted rent of sek 9.3 billion and high sustainability focus Christoffer? christoffer

Speaker 1: Yes, thank you. So summarizing the full year 2025 and comparing it with the same period last year, it is negatively affected by mainly divestments and higher vacancies. That is shown in sort of all of the results figures on this page. In addition to that, and as Pål mentioned, negative value changes of the properties, SEK 2.5 billion for the full year and SEK 1.1 billion for the Q4, -1.8% for the full year. This all summarizing gives a return on equity of 1.2%, which of course is much lower than our target of 10%. Yes, thank you. yes thank you So summarizing the full year 2025 and comparing it with the same period last year, it is negatively affected by mainly divestments and higher vacancies. so summarizing the full year 2025 and comparing it with the same period last year it is negatively affected by mainly divestments and higher vacancies That is shown in sort of all of the results figures on this page. that is shown in sort of all of the results figures on this page In addition to that, and as Pål mentioned, negative value changes of the properties, SEK 2.5 billion for the full year and SEK 1.1 billion for the Q4, -1.8% for the full year. in addition to that and as pål mentioned negative value changes of the properties sek 2.5 billion for the full year and sek 1.1 billion for the q4 -1.8% for the full year This all summarizing gives a return on equity of 1.2%, which of course is much lower than our target of 10%. this all summarizing gives a return on equity of 1.2% which of course is much lower than our target of 10% Net leasing, Pål also mentioned SEK -140, very negative 1 in the Q1, and then the three quarters after that, positive ones, in the Q4, SEK +26 million. Occupancy is fairly stable, 89.8%, roughly the same as last quarter. And we have, during the year, invested quite a lot, SEK 4.4 billion, combination of investing in our properties is the most of it. In addition to that, we also made some acquisitions during 2025. Pål mentioned a few one-offs, we have a couple of one-offs in Q4, isolated, both positive ones and negative ones, and we will try to go through all of them during this call. Net leasing, Pål also mentioned SEK -140, very negative 1 in the Q1, and then the three quarters after that, positive ones, in the Q4, SEK +26 million. net leasing pål also mentioned sek -140 very negative 1 in the q1 and then the three quarters after that positive ones in the q4 sek +26 million Occupancy is fairly stable, 89.8%, roughly the same as last quarter. occupancy is fairly stable 89.8% roughly the same as last quarter And we have, during the year, invested quite a lot, SEK 4.4 billion, combination of investing in our properties is the most of it. and we have during the year invested quite a lot sek 4.4 billion combination of investing in our properties is the most of it In addition to that, we also made some acquisitions during 2025. in addition to that we also made some acquisitions during 2025 Pål mentioned a few one-offs, we have a couple of one-offs in Q4, isolated, both positive ones and negative ones, and we will try to go through all of them during this call. pål mentioned a few one-offs we have a couple of one-offs in q4 isolated both positive ones and negative ones and we will try to go through all of them during this call So looking at in more detail, in the like-for-like portfolio, income increased by SEK 26 million, that is 0.3%. Index contributed with SEK 140 million, but it's done offset by higher vacancies of SEK 190 million. Then we have one of the first one-offs, which is SEK 58 million in a one-off relating to a reversal of accrued annuity for the Northvolt. So that's a difficult one. We took the full net leasing, negative net leasing in Q1, but then now in Q4, we sort of concluded the final parts of the rental agreement with the bankruptcy estate. And then we had no cash effect, but an accrued one that we reversed during Q4. So looking at in more detail, in the like-for-like portfolio, income increased by SEK 26 million, that is 0.3%. so looking at in more detail in the like-for-like portfolio income increased by sek 26 million that is 0.3% Index contributed with SEK 140 million, but it's done offset by higher vacancies of SEK 190 million. index contributed with sek 140 million but it's done offset by higher vacancies of sek 190 million Then we have one of the first one-offs, which is SEK 58 million in a one-off relating to a reversal of accrued annuity for the Northvolt. then we have one of the first one-offs which is sek 58 million in a one-off relating to a reversal of accrued annuity for the northvolt So that's a difficult one. so that's a difficult one We took the full net leasing, negative net leasing in Q1, but then now in Q4, we sort of concluded the final parts of the rental agreement with the bankruptcy estate. we took the full net leasing negative net leasing in q1 but then now in q4 we sort of concluded the final parts of the rental agreement with the bankruptcy estate And then we had no cash effect, but an accrued one that we reversed during Q4. and then we had no cash effect but an accrued one that we reversed during q4 So that was a positive 58, 58 million SEK in Q4. Direct property costs, like-for-like, increased by SEK 58 million, corresponding to 2.7%. We have a mild winter. Now we're talking Q4, not what we have seen after Q4, but in Q4, a mild winter. The costs for heating and snow removal was actually decreased year compared to last year. But then we have that was offset by some higher rental losses. And we also, during Q4, isolated, took a couple of larger wasted projects or projects, projects that we are not expecting to go through anymore. Yeah, so one-offs, yeah, of that one recorded under maintenance in Q4. Central administration and property administration in total increased by SEK 54 million, and here we have another one-off. Pål mentioned it. So that was a positive 58, 58 million SEK in Q4. so that was a positive 58 58 million sek in q4 Direct property costs, like-for-like, increased by SEK 58 million, corresponding to 2.7%. direct property costs like-for-like increased by sek 58 million corresponding to 2.7% We have a mild winter. we have a mild winter Now we're talking Q4, not what we have seen after Q4, but in Q4, a mild winter. now we're talking q4 not what we have seen after q4 but in q4 a mild winter The costs for heating and snow removal was actually decreased year compared to last year. the costs for heating and snow removal was actually decreased year compared to last year But then we have that was offset by some higher rental losses. but then we have that was offset by some higher rental losses And we also, during Q4, isolated, took a couple of larger wasted projects or projects, projects that we are not expecting to go through anymore. and we also during q4 isolated took a couple of larger wasted projects or projects projects that we are not expecting to go through anymore Yeah, so one-offs, yeah, of that one recorded under maintenance in Q4. yeah so one-offs yeah of that one recorded under maintenance in q4 Central administration and property administration in total increased by SEK 54 million, and here we have another one-off. central administration and property administration in total increased by sek 54 million and here we have another one-off Pål mentioned it. pål mentioned it Approximately 40 million of those 54 million is one-off relating to the staff reduction and head office reorganization. We can go to the next slide, please. Looking at the leasing renegotiations of SEK 279 million, that is 11% of the total lease stock up for renegotiation. Fairly the same rent as before, decrease of 0.1%, so very flat. But as I said, quite low volume of the total stock up for renegotiation. And the very large bulk of it, 62% or SEK 1.6 billion, is actually, yeah, sort of just prolonged. Prolonged at the same terms as before. Yeah, that is something I think is very much worth mentioning. Approximately 40 million of those 54 million is one-off relating to the staff reduction and head office reorganization. approximately 40 million of those 54 million is one-off relating to the staff reduction and head office reorganization We can go to the next slide, please. we can go to the next slide please Looking at the leasing renegotiations of SEK 279 million, that is 11% of the total lease stock up for renegotiation. looking at the leasing renegotiations of sek 279 million that is 11% of the total lease stock up for renegotiation Fairly the same rent as before, decrease of 0.1%, so very flat. fairly the same rent as before decrease of 0.1% so very flat But as I said, quite low volume of the total stock up for renegotiation. but as i said quite low volume of the total stock up for renegotiation And the very large bulk of it, 62% or SEK 1.6 billion, is actually, yeah, sort of just prolonged. and the very large bulk of it 62% or sek 1.6 billion is actually yeah sort of just prolonged Prolonged at the same terms as before. prolonged at the same terms as before Yeah, that is something I think is very much worth mentioning. yeah that is something i think is very much worth mentioning Net leasing, we have been talking about already, and here we also have the figures or in the graph up to the right, showing that, as mentioned, the very big part of it was a -1 in Q1, and a very big part of that was the Northvolt bankruptcy. And then we have 3 positive quarters, not big figures, of course, but at least positive. Property values, we have been through most of the figures already, actually. So SEK 1.1 billion down in Q4. Stockholm stands for SEK 0.9 of that, and Finland, SEK 0.2. And as Pål mentioned, of the Stockholm, what SEK 0.9 billion down, SEK 0.5 billion is related to Kista. Net leasing, we have been talking about already, and here we also have the figures or in the graph up to the right, showing that, as mentioned, the very big part of it was a -1 in Q1, and a very big part of that was the Northvolt bankruptcy. net leasing we have been talking about already and here we also have the figures or in the graph up to the right showing that as mentioned the very big part of it was a -1 in q1 and a very big part of that was the northvolt bankruptcy And then we have 3 positive quarters, not big figures, of course, but at least positive. and then we have 3 positive quarters not big figures of course but at least positive Property values, we have been through most of the figures already, actually. property values we have been through most of the figures already actually So SEK 1.1 billion down in Q4. so sek 1.1 billion down in q4 Stockholm stands for SEK 0.9 of that, and Finland, SEK 0.2. stockholm stands for sek 0.9 of that and finland sek 0.2 And as Pål mentioned, of the Stockholm, what SEK 0.9 billion down, SEK 0.5 billion is related to Kista. and as pål mentioned of the stockholm what sek 0.9 billion down sek 0.5 billion is related to kista Valuation yield, fairly flat, 1 basis point up from last quarter, but you know, what? 5.64. Fairly stable as well. I think we take the next slide down. Looking at the financial highlights and our funding situation, overall, the funding markets where we are present, i.e., the banking market, the SEK bond market, the eurobond market, as well as the hybrid market, are all very favorable at the moment, I would say. So very good market conditions, credit margins at good levels and very much liquidity in all of the markets. Current spreads in the domestic or the SEK market is some 80 basis points for three-year money, some 110-150 for five-year money. Banks offer us typically five-year money, 110-130 basis points. Valuation yield, fairly flat, 1 basis point up from last quarter, but you know, what? 5.64. valuation yield fairly flat 1 basis point up from last quarter but you know what 5.64 Fairly stable as well. fairly stable as well I think we take the next slide down. i think we take the next slide down Looking at the financial highlights and our funding situation, overall, the funding markets where we are present, i.e., the banking market, the SEK bond market, the eurobond market, as well as the hybrid market, are all very favorable at the moment, I would say. looking at the financial highlights and our funding situation overall the funding markets where we are present i.e the banking market the sek bond market the eurobond market as well as the hybrid market are all very favorable at the moment i would say So very good market conditions, credit margins at good levels and very much liquidity in all of the markets. so very good market conditions credit margins at good levels and very much liquidity in all of the markets Current spreads in the domestic or the SEK market is some 80 basis points for three-year money, some 110-150 for five-year money. current spreads in the domestic or the sek market is some 80 basis points for three-year money some 110-150 for five-year money Banks offer us typically five-year money, 110-130 basis points. banks offer us typically five-year money 110-130 basis points Also at good levels, good volumes. I would say that most of them or maybe all of them would like to increase their positions. So that's very good. During Q4, isolated, we did not actually do that many funding actions. We made one bond, SEK 1 billion, 122 basis points, 5.25 years. Bought back some bonds at the same time. And then as Pål mentioned earlier, we made this consent solicitation, and overall we got the results that we were expecting, so that's good. Average interest rates 3.1%, stable compared to last year, actually down a little bit since the year before. And we see potential for actually reducing this a little bit going forward. Also at good levels, good volumes. also at good levels good volumes I would say that most of them or maybe all of them would like to increase their positions. i would say that most of them or maybe all of them would like to increase their positions So that's very good. so that's very good During Q4, isolated, we did not actually do that many funding actions. during q4 isolated we did not actually do that many funding actions We made one bond, SEK 1 billion, 122 basis points, 5.25 years. we made one bond sek 1 billion 122 basis points 5.25 years Bought back some bonds at the same time. bought back some bonds at the same time And then as Pål mentioned earlier, we made this consent solicitation , and overall we got the results that we were expecting, so that's good. and then as pål mentioned earlier we made this consent solicitation and overall we got the results that we were expecting so that's good Average interest rates 3.1%, stable compared to last year, actually down a little bit since the year before. average interest rates 3.1% stable compared to last year actually down a little bit since the year before And we see potential for actually reducing this a little bit going forward. and we see potential for actually reducing this a little bit going forward Also on the financing side, we have a couple of one-offs. As, together, they are approximately SEK 50 million, and as Pål mentioned, 30 of them are connected to this consent solicitation, and then we have an additional list, approximately 20, for refinancing and early redemption, both coupled to loans and to bonds. Quite large one-offs in the financial items as well. On this slide, we have our financial key ratios. Very stable, I would say small changes compared to last quarter. Loan to value of 36.5% ICR 3.2. Good headroom to our policy, we have LTV policy of 40%, ICR policy of 3x, so good headroom there. At the beginning of this year, S&P confirmed our BBB, with stable outlook. Also on the financing side, we have a couple of one-offs. also on the financing side we have a couple of one-offs As, together, they are approximately SEK 50 million, and as Pål mentioned, 30 of them are connected to this consent solicitation , and then we have an additional list, approximately 20, for refinancing and early redemption, both coupled to loans and to bonds. as together they are approximately sek 50 million and as pål mentioned 30 of them are connected to this consent solicitation and then we have an additional list approximately 20 for refinancing and early redemption both coupled to loans and to bonds Quite large one-offs in the financial items as well. quite large one-offs in the financial items as well On this slide, we have our financial key ratios. on this slide we have our financial key ratios Very stable, I would say small changes compared to last quarter. very stable i would say small changes compared to last quarter Loan to value of 36.5% ICR 3.2. loan to value of 36.5% icr 3.2 Good headroom to our policy, we have LTV policy of 40%, ICR policy of 3x, so good headroom there. good headroom to our policy we have ltv policy of 40% icr policy of 3x so good headroom there At the beginning of this year, S&P confirmed our BBB, with stable outlook. at the beginning of this year s&p confirmed our bbb with stable outlook That, that's about what has happened on the rating side. Debt maturities still stable, 4.3 years. We are quite happy with our funding situation and our key ratios stability. Then I hand over to you, Pål. That, that's about what has happened on the rating side. that that's about what has happened on the rating side Debt maturities still stable, 4.3 years. debt maturities still stable 4.3 years We are quite happy with our funding situation and our key ratios stability. we are quite happy with our funding situation and our key ratios stability Then I hand over to you, Pål. then i hand over to you pål

Speaker 7: Yeah, one of the things which we are very good at, I would say, within Castellum, and it's the reduction of energy consumption within our properties. So last year, we actually reduced the energy consumption in our portfolio with almost 7%. And that's one of the things I really like about Castellum, is this key focus on reducing costs for energy, but then also from a sustainability perspective. So that's something to be very proud of. 58% of our portfolio is sustainability certified, and we actually have 24% of our electricity self-generated. So high level of sustainability within Castellum, something to be proud of. Yeah, one of the things which we are very good at, I would say, within Castellum, and it's the reduction of energy consumption within our properties. yeah one of the things which we are very good at i would say within castellum and it's the reduction of energy consumption within our properties So last year, we actually reduced the energy consumption in our portfolio with almost 7%. so last year we actually reduced the energy consumption in our portfolio with almost 7% And that's one of the things I really like about Castellum, is this key focus on reducing costs for energy, but then also from a sustainability perspective. and that's one of the things i really like about castellum is this key focus on reducing costs for energy but then also from a sustainability perspective So that's something to be very proud of. 58% of our portfolio is sustainability certified, and we actually have 24% of our electricity self-generated. so that's something to be very proud of 58% of our portfolio is sustainability certified and we actually have 24% of our electricity self-generated So high level of sustainability within Castellum, something to be proud of. so high level of sustainability within castellum something to be proud of

Speaker 1: Super. So, if you'd like to ask a question by phone, please dial pound key five on the telephone keypad and ask your question. And the first question comes from Jan Ihrfelt at Kepler. Super. super So, if you'd like to ask a question by phone, please dial pound key five on the telephone keypad and ask your question. so if you'd like to ask a question by phone please dial pound key five on the telephone keypad and ask your question And the first question comes from Jan Ihrfelt at Kepler. and the first question comes from jan ihrfelt at kepler

Speaker 3: Okay, good morning. Thanks for taking my questions. I actually have four of them. I start with the sentiment on the rental market, office market. Have you seen any change in Q1 compared to Q4? Okay, good morning. okay good morning Thanks for taking my questions. thanks for taking my questions I actually have four of them. i actually have four of them I start with the sentiment on the rental market, office market. i start with the sentiment on the rental market office market Have you seen any change in Q1 compared to Q4? have you seen any change in q1 compared to q4

Speaker 7: Reluctant to speculate, and it's very early actually in the quarter to say anything about that. When I speak with the staff in the offices, I can say they still say that it's a challenging market. So our only focus is to do whatever we can to reduce vacancy. Reluctant to speculate, and it's very early actually in the quarter to say anything about that. reluctant to speculate and it's very early actually in the quarter to say anything about that When I speak with the staff in the offices, I can say they still say that it's a challenging market. when i speak with the staff in the offices i can say they still say that it's a challenging market So our only focus is to do whatever we can to reduce vacancy. so our only focus is to do whatever we can to reduce vacancy

Speaker 3: Okay. Next question. You had a net letting figure for the full year of minus SEK 140 million. I'm just a little bit asking about the overhang into 2026. How much of this SEK 140 million has already hit the PNL? Okay. okay Next question. next question You had a net letting figure for the full year of minus SEK 140 million. you had a net letting figure for the full year of minus sek 140 million I'm just a little bit asking about the overhang into 2026. i'm just a little bit asking about the overhang into 2026 How much of this SEK 140 million has already hit the PNL? how much of this sek 140 million has already hit the pnl

Speaker 1: We actually don't have a specific figure on that one. I mean, typically, there is a lag, as you know. In this case, it's very much so. We got a big portion, as you know, in Q1 was the Northvolt, and we actually paid rent for the full year 2025. Not all of the volume, but quite a lot of it. That is coming in with full effect in 2026. But we don't have a- We actually don't have a specific figure on that one. we actually don't have a specific figure on that one I mean, typically, there is a lag, as you know. i mean typically there is a lag as you know In this case, it's very much so. in this case it's very much so We got a big portion, as you know, in Q1 was the Northvolt, and we actually paid rent for the full year 2025. we got a big portion as you know in q1 was the northvolt and we actually paid rent for the full year 2025 Not all of the volume, but quite a lot of it. not all of the volume but quite a lot of it That is coming in with full effect in 2026. that is coming in with full effect in 2026 But we don't have a- but we don't have a-

Speaker 3: Okay. Okay. okay

Speaker 1: Figure to give on that. Figure to give on that. figure to give on that

Speaker 3: No, no, exactly. Okay. And bringing down vacancies, you know, how 10%, and I'm just looking at some kind of time frame here. When, at what point in time would you get down to 5%? Have you any time frame there? No, no, exactly. no no exactly Okay. okay And bringing down vacancies, you know, how 10%, and I'm just looking at some kind of time frame here. and bringing down vacancies you know how 10% and i'm just looking at some kind of time frame here When, at what point in time would you get down to 5%? when at what point in time would you get down to 5% Have you any time frame there? have you any time frame there

Speaker 7: That's an impossible question to answer, and it's... We are not doing that type of forecast. But as I think I mentioned that in the Q3 report, that we know that it will probably be a bit worse before it becomes better in relating to your previous question. But we are not making any forecasts when it comes to vacancy ratios. That's an impossible question to answer, and it's... that's an impossible question to answer and it's We are not doing that type of forecast. we are not doing that type of forecast But as I think I mentioned that in the Q3 report, that we know that it will probably be a bit worse before it becomes better in relating to your previous question. but as i think i mentioned that in the q3 report that we know that it will probably be a bit worse before it becomes better in relating to your previous question But we are not making any forecasts when it comes to vacancy ratios. but we are not making any forecasts when it comes to vacancy ratios

Speaker 3: ... Okay, and my last question regards the, the one-off, the SEK 40 million. And where is it recorded? Is it all in central administration, or is it split to some other lines? ... Okay, and my last question regards the, the one-off, the SEK 40 million. okay and my last question regards the the one-off the sek 40 million And where is it recorded? and where is it recorded Is it all in central administration, or is it split to some other lines? is it all in central administration or is it split to some other lines

Speaker 1: It's a split between central administration and property administration. It's a split between central administration and property administration. it's a split between central administration and property administration

Speaker 3: Yeah, and the ratio between them? Yeah, and the ratio between them? yeah and the ratio between them

Speaker 1: I don't have that ratio, actually. I can come back on that. I don't have that ratio, actually. i don't have that ratio actually I can come back on that. i can come back on that

Speaker 3: Okay. Thanks for taking my questions. Okay. okay Thanks for taking my questions. thanks for taking my questions

Speaker 1: Thank you. The next question, Lars Norrby, SEB. Thank you. thank you The next question, Lars Norrby, SEB. the next question lars norrby seb

Speaker 4: Well, thank you, and good morning. Part of your back to basic strategy is to, I quote, "divest non-core assets." So far, since you assumed the role as CEO, Pål, you haven't done that much. I think there was some SEK 300 million completed in Q4, and you announced through a press release an additional SEK 500 million, which in the context of a portfolio of SEK 137 billion, is not that much. And then you also mentioned that you made some changes to your bond terms in the Q4. My first question is, is there anything now holding you back from finding significant divestments? Well, thank you, and good morning. well thank you and good morning Part of your back to basic strategy is to, I quote, "divest non-core assets." So far, since you assumed the role as CEO, Pål, you haven't done that much. part of your back to basic strategy is to i quote "divest non-core assets." so far since you assumed the role as ceo pål you haven't done that much I think there was some SEK 300 million completed in Q4, and you announced through a press release an additional SEK 500 million, which in the context of a portfolio of SEK 137 billion, is not that much. i think there was some sek 300 million completed in q4 and you announced through a press release an additional sek 500 million which in the context of a portfolio of sek 137 billion is not that much And then you also mentioned that you made some changes to your bond terms in the Q4. and then you also mentioned that you made some changes to your bond terms in the q4 My first question is, is there anything now holding you back from finding significant divestments? my first question is is there anything now holding you back from finding significant divestments

Speaker 7: No, I wouldn't say so. The transaction market is quite vivid, I would say. Christoffer mentioned that the market for lending money is very favorable right now, so it's a huge interest actually in making transactions in the property world. And we see we have lots of discussion, people reaching out to see to find a deal. But nowadays, if I may, reminisce of how it was 30 years ago, transactions went much faster than they do today. The due diligence phase in making transactions are so much more due diligent, so to say. So even if I wish that we had a higher pace, that's not how the business works nowadays. But I can assure you that we are doing everything we can to high, to reach this target of high, of a high transaction. No, I wouldn't say so. no i wouldn't say so The transaction market is quite vivid, I would say. the transaction market is quite vivid i would say Christoffer mentioned that the market for lending money is very favorable right now, so it's a huge interest actually in making transactions in the property world. christoffer mentioned that the market for lending money is very favorable right now so it's a huge interest actually in making transactions in the property world And we see we have lots of discussion, people reaching out to see to find a deal. and we see we have lots of discussion people reaching out to see to find a deal But nowadays, if I may, reminisce of how it was 30 years ago, transactions went much faster than they do today. but nowadays if i may reminisce of how it was 30 years ago transactions went much faster than they do today The due diligence phase in making transactions are so much more due diligent, so to say. the due diligence phase in making transactions are so much more due diligent so to say So even if I wish that we had a higher pace, that's not how the business works nowadays. so even if i wish that we had a higher pace that's not how the business works nowadays But I can assure you that we are doing everything we can to high, to reach this target of high, of a high transaction. but i can assure you that we are doing everything we can to high to reach this target of high of a high transaction

Speaker 4: Okay, and my second and final question is, what is a non-core asset in your portfolio? Okay, and my second and final question is, what is a non-core asset in your portfolio? okay and my second and final question is what is a non-core asset in your portfolio

Speaker 7: To be quite honest, I don't think I've never, ever used the word core or non-core, so I never said that. Our core assets are the ones we have, I would say. Some of them are perhaps giving a too low rate of return, given our expectations of the future. So our core assets are actually commercial real estate in Sweden. It might be hotels, it might be offices, it might be logistics or light warehouses, and so on and so forth. So I never actually used the words core or non-core. So we are more, let's say, looking at what we believe that they can give us in return going forward. And those who are helping us in reaching our target, that's our core assets. That's not office, that's not that, that's not this. So that's how we're thinking about that. To be quite honest, I don't think I've never, ever used the word core or non-core, so I never said that. to be quite honest i don't think i've never ever used the word core or non-core so i never said that Our core assets are the ones we have, I would say. our core assets are the ones we have i would say Some of them are perhaps giving a too low rate of return, given our expectations of the future. some of them are perhaps giving a too low rate of return given our expectations of the future So our core assets are actually commercial real estate in Sweden. so our core assets are actually commercial real estate in sweden It might be hotels, it might be offices, it might be logistics or light warehouses, and so on and so forth. it might be hotels it might be offices it might be logistics or light warehouses and so on and so forth So I never actually used the words core or non-core. so i never actually used the words core or non-core So we are more, let's say, looking at what we believe that they can give us in return going forward. so we are more let's say looking at what we believe that they can give us in return going forward And those who are helping us in reaching our target, that's our core assets. and those who are helping us in reaching our target that's our core assets That's not office, that's not that, that's not this. that's not office that's not that that's not this So that's how we're thinking about that. so that's how we're thinking about that

Speaker 4: Okay. Thank you. Okay. okay Thank you. thank you

Speaker 1: Thank you, Lars. Next question from Nadeem at UBS. Thank you, Lars. thank you lars Next question from Nadeem at UBS. next question from nadeem at ubs

Speaker 9: Hi, good morning. Can you hear me clearly? Hi, good morning. hi good morning Can you hear me clearly? can you hear me clearly

Speaker 1: Yes. Yes. Yes. yes Yes. yes

Speaker 9: Wonderful. Thank you both for taking my questions. I've got a few, and I'll ask them one by one, if that's okay. So firstly, you're saying on your capital distribution, you are now allocating your full distribution to buybacks rather than dividends. And I think, Pål, you mentioned, quote, unquote, "simple mathematics" in your presentation. So if there is simple ways to split it, then is your thinking that if you're trading at a discount, you then do buybacks, and if you're trading at a premium or closer to that, you're doing dividends? Or is there a more, is there a more nuanced way that you're looking at this distribution policy going forward? It isn't really that simple. Wonderful. wonderful Thank you both for taking my questions. thank you both for taking my questions I've got a few, and I'll ask them one by one, if that's okay. i've got a few and i'll ask them one by one if that's okay So firstly, you're saying on your capital distribution, you are now allocating your full distribution to buybacks rather than dividends. so firstly you're saying on your capital distribution you are now allocating your full distribution to buybacks rather than dividends And I think, Pål, you mentioned, quote, unquote, "simple mathematics" in your presentation. and i think pål you mentioned quote unquote "simple mathematics" in your presentation So if there is simple ways to split it, then is your thinking that if you're trading at a discount, you then do buybacks, and if you're trading at a premium or closer to that, you're doing dividends? so if there is simple ways to split it then is your thinking that if you're trading at a discount you then do buybacks and if you're trading at a premium or closer to that you're doing dividends Or is there a more, is there a more nuanced way that you're looking at this distribution policy going forward? or is there a more is there a more nuanced way that you're looking at this distribution policy going forward It isn't really that simple. it isn't really that simple

Speaker 7: I would say it's really that simple, even if you can make it a bit more complicated. But now the discount is quite big, right? It's 30%-33%, and then you don't have to think about it that much. But once, and hopefully when that gap closes, we have to have a deeper discussion when it's time to switch to dividend from share buyback. I would say it's really that simple, even if you can make it a bit more complicated. i would say it's really that simple even if you can make it a bit more complicated But now the discount is quite big, right? but now the discount is quite big right It's 30%-33%, and then you don't have to think about it that much. it's 30%-33% and then you don't have to think about it that much But once, and hopefully when that gap closes, we have to have a deeper discussion when it's time to switch to dividend from share buyback. but once and hopefully when that gap closes we have to have a deeper discussion when it's time to switch to dividend from share buyback

Speaker 9: Got it. Okay, and a quick follow-up to that as well. What is your exact execution plan on the buybacks through the year? So I know it's SEK 1.2 billion. It isn't a small proportion of your market cap, so how do you propose you perform the buybacks this year? Got it. got it Okay, and a quick follow-up to that as well. okay and a quick follow-up to that as well What is your exact execution plan on the buybacks through the year? what is your exact execution plan on the buybacks through the year So I know it's SEK 1.2 billion. so i know it's sek 1.2 billion It isn't a small proportion of your market cap, so how do you propose you perform the buybacks this year? it isn't a small proportion of your market cap so how do you propose you perform the buybacks this year

Speaker 1: Our thinking is that we should wait until after the AGM. We think that we should adopt the financial results for 2025, i.e., the part of that results that we are distributing to our shareholders. So we will wait until AGM and we will come back with details after that. Our thinking is that we should wait until after the AGM. our thinking is that we should wait until after the agm We think that we should adopt the financial results for 2025, i.e., the part of that results that we are distributing to our shareholders. we think that we should adopt the financial results for 2025 i.e the part of that results that we are distributing to our shareholders So we will wait until AGM and we will come back with details after that. so we will wait until agm and we will come back with details after that

Speaker 9: Okay. Got it. Very clear. Thank you. My second question is, I won't be using the word core and non-core, as Pål mentioned, but, looking at, some pain points in the portfolio, such as, Kista in Finland, where you've taken more substantial write-downs, in values, and also they have elevated vacancies. What is your thinking on these, regions and generally your, your focus on trying to become more Sweden-centric? I think that's something you mentioned in your Q3 report. Okay. okay Got it. got it Very clear. very clear Thank you. thank you My second question is, I won't be using the word core and non-core, as Pål mentioned, but, looking at, some pain points in the portfolio, such as, Kista in Finland, where you've taken more substantial write-downs, in values, and also they have elevated vacancies. my second question is i won't be using the word core and non-core as pål mentioned but looking at some pain points in the portfolio such as kista in finland where you've taken more substantial write-downs in values and also they have elevated vacancies What is your thinking on these, regions and generally your, your focus on trying to become more Sweden-centric? what is your thinking on these regions and generally your your focus on trying to become more sweden-centric I think that's something you mentioned in your Q3 report. i think that's something you mentioned in your q3 report

Speaker 7: ... And more Sweden-centric, I wouldn't write that. I would say continue. We are already Swedish-centric, so that is not a change, I would say. Well, Kista, it's a small proportion of our portfolio. It's very well known in Sweden, that's why we highlight it. It's struggling, it has been struggling for a long time. We are picking our brains, finding a way to reduce vacancy and make a turnaround in Kista. And I would be quite honest to say that that's not an easy nut to crack, but we are really working on that. Vacancy, 22% in our portfolio, probably in Kista, perhaps more than 30%, so it's a challenging market. ... And more Sweden-centric, I wouldn't write that. and more sweden-centric i wouldn't write that I would say continue. i would say continue We are already Swedish-centric, so that is not a change, I would say. we are already swedish-centric so that is not a change i would say Well, Kista, it's a small proportion of our portfolio. well kista it's a small proportion of our portfolio It's very well known in Sweden, that's why we highlight it. it's very well known in sweden that's why we highlight it It's struggling, it has been struggling for a long time. it's struggling it has been struggling for a long time We are picking our brains, finding a way to reduce vacancy and make a turnaround in Kista. we are picking our brains finding a way to reduce vacancy and make a turnaround in kista And I would be quite honest to say that that's not an easy nut to crack, but we are really working on that. and i would be quite honest to say that that's not an easy nut to crack but we are really working on that Vacancy, 22% in our portfolio, probably in Kista, perhaps more than 30%, so it's a challenging market. vacancy 22% in our portfolio probably in kista perhaps more than 30% so it's a challenging market But again, small proportion of our portfolio, and again, we are really picking our brains, trying to figure out how to make a turnaround, at least for our properties in Kista. Finland, yeah, it's also a challenging market, just as it has been in Stockholm, Gothenburg, and Malmö, and Copenhagen, and to some extent, also in Oslo. Again, we are also trying there to find ways to reduce vacancy and, keeping rent levels stable, just as we do for Kista. But again, small proportion of our portfolio, and again, we are really picking our brains, trying to figure out how to make a turnaround, at least for our properties in Kista. but again small proportion of our portfolio and again we are really picking our brains trying to figure out how to make a turnaround at least for our properties in kista Finland, yeah, it's also a challenging market, just as it has been in Stockholm, Gothenburg, and Malmö, and Copenhagen, and to some extent, also in Oslo. finland yeah it's also a challenging market just as it has been in stockholm gothenburg and malmö and copenhagen and to some extent also in oslo Again, we are also trying there to find ways to reduce vacancy and, keeping rent levels stable, just as we do for Kista. again we are also trying there to find ways to reduce vacancy and keeping rent levels stable just as we do for kista

Speaker 9: That's very clear. Thank you. My third question is then moving to a different part of the Nordic region, Entra and your stake there. I think you mentioned that it's a fairly attractive market in Norway at the moment, despite the swap rates being slightly higher, inflation is more elevated relative to, say, Sweden and Finland. So what is your thinking on the Entra stake, going into this year? I know there was an increase in the stake, in Q1 last year, so are there any thoughts on this? That's very clear. that's very clear Thank you. thank you My third question is then moving to a different part of the Nordic region, Entra and your stake there. my third question is then moving to a different part of the nordic region entra and your stake there I think you mentioned that it's a fairly attractive market in Norway at the moment, despite the swap rates being slightly higher, inflation is more elevated relative to, say, Sweden and Finland. i think you mentioned that it's a fairly attractive market in norway at the moment despite the swap rates being slightly higher inflation is more elevated relative to say sweden and finland So what is your thinking on the Entra stake, going into this year? so what is your thinking on the entra stake going into this year I know there was an increase in the stake, in Q1 last year, so are there any thoughts on this? i know there was an increase in the stake in q1 last year so are there any thoughts on this

Speaker 7: I really like Entra. Entra is a great, great company, and I think Castellum can probably learn quite a bit from Entra. So I appreciate the cooperation we have with Entra. Obviously, it's not an optimum situation, I think, where we have the stake we have. Balder has its stake it has. It's a low free flow for other shareholders, so perhaps it's not the best long-term solution. Don't have any answers to the long-term solution today, not at all. But what one should say is that Entra is performing quite well, so it's not hurting us in any way, having that stake in Entra, because it's a good company. They have a nice portfolio, nice management, and so it's not something that is dragging us down, not at all. I really like Entra. i really like entra Entra is a great, great company, and I think Castellum can probably learn quite a bit from Entra. entra is a great great company and i think castellum can probably learn quite a bit from entra So I appreciate the cooperation we have with Entra. so i appreciate the cooperation we have with entra Obviously, it's not an optimum situation, I think, where we have the stake we have. obviously it's not an optimum situation i think where we have the stake we have Balder has its stake it has. balder has its stake it has It's a low free flow for other shareholders, so perhaps it's not the best long-term solution. it's a low free flow for other shareholders so perhaps it's not the best long-term solution Don't have any answers to the long-term solution today, not at all. don't have any answers to the long-term solution today not at all But what one should say is that Entra is performing quite well, so it's not hurting us in any way, having that stake in Entra, because it's a good company. but what one should say is that entra is performing quite well so it's not hurting us in any way having that stake in entra because it's a good company They have a nice portfolio, nice management, and so it's not something that is dragging us down, not at all. they have a nice portfolio nice management and so it's not something that is dragging us down not at all The contrary, actually. The contrary, actually. the contrary actually

Speaker 9: Okay, very clear. My final question is, on your recent leasing of the Infinity building in Hagastaden. I know, there's been some talk in the press of who the tenant may be, but could you provide some more details, potentially, on the yields, the rent levels, and more generally, the discussions you've been having on letting? Are they with large tenants and public companies, or are they increasingly with smaller companies and potentially SMEs? Okay, very clear. okay very clear My final question is, on your recent leasing of the Infinity building in Hagastaden. my final question is on your recent leasing of the infinity building in hagastaden I know, there's been some talk in the press of who the tenant may be, but could you provide some more details, potentially, on the yields, the rent levels, and more generally, the discussions you've been having on letting? i know there's been some talk in the press of who the tenant may be but could you provide some more details potentially on the yields the rent levels and more generally the discussions you've been having on letting Are they with large tenants and public companies, or are they increasingly with smaller companies and potentially SMEs? are they with large tenants and public companies or are they increasingly with smaller companies and potentially smes

Speaker 7: Actually, we cannot elaborate at all regarding. We've sent out the information we can send out, and that's been requested from the tenant. But we will disclose more when they have either used or not used the option to reduce the number of square meters they will have, and then we will provide you with the more information. But obviously, we're very happy that Ericsson has selected our building, Infinity. It will be a great building, and I think Ericsson will have a nice time sitting there in Hagastaden in our building. Actually, we cannot elaborate at all regarding. actually we cannot elaborate at all regarding We've sent out the information we can send out, and that's been requested from the tenant. we've sent out the information we can send out and that's been requested from the tenant But we will disclose more when they have either used or not used the option to reduce the number of square meters they will have, and then we will provide you with the more information. but we will disclose more when they have either used or not used the option to reduce the number of square meters they will have and then we will provide you with the more information But obviously, we're very happy that Ericsson has selected our building, Infinity. but obviously we're very happy that ericsson has selected our building infinity It will be a great building, and I think Ericsson will have a nice time sitting there in Hagastaden in our building. it will be a great building and i think ericsson will have a nice time sitting there in hagastaden in our building

Speaker 9: Okay, very clear. And just to follow up on the size of maybe the tenants that you're speaking to more generally in the markets for lettings. Are they larger tenants and companies, or do you think that the general size of those companies and Okay, very clear. okay very clear And just to follow up on the size of maybe the tenants that you're speaking to more generally in the markets for lettings. and just to follow up on the size of maybe the tenants that you're speaking to more generally in the markets for lettings Are they larger tenants and companies, or do you think that the general size of those companies and are they larger tenants and companies or do you think that the general size of those companies and Is there more skewed to SMEs? Is there more skewed to SMEs? is there more skewed to smes

Speaker 7: Our portfolio is a broad palette of very different type of buildings. We just don't have office, we have other type of buildings as well. So we are speaking to a very broad palette of Swedish businesses. Our portfolio is a broad palette of very different type of buildings. our portfolio is a broad palette of very different type of buildings We just don't have office, we have other type of buildings as well. we just don't have office we have other type of buildings as well So we are speaking to a very broad palette of Swedish businesses. so we are speaking to a very broad palette of swedish businesses

Speaker 9: Okay, that's very clear. Thank you. Okay, that's very clear. okay that's very clear Thank you. thank you

Speaker 1: Thank you. Next question, Adrian from Deutsche Bank. Thank you. thank you Next question, Adrian from Deutsche Bank. next question adrian from deutsche bank

Speaker 11: Good morning, both. Basically, I had two questions. The first one is on the consent solicitation process for your bonds. As you mentioned, you got approval from majority of your bondholders. However, there is still one particular bond, the 2029s, which actually has even more constraining language compared to the other ones, which hasn't received consent. Hence, I was wondering what you intend to do with this particular bond, because I guess the 2026, in any case, is due in the very short term. Good morning, both. good morning both Basically, I had two questions. basically i had two questions The first one is on the consent solicitation process for your bonds. the first one is on the consent solicitation process for your bonds As you mentioned, you got approval from majority of your bondholders. as you mentioned you got approval from majority of your bondholders However, there is still one particular bond, the 2029s, which actually has even more constraining language compared to the other ones, which hasn't received consent. however there is still one particular bond the 2029s which actually has even more constraining language compared to the other ones which hasn't received consent Hence, I was wondering what you intend to do with this particular bond, because I guess the 2026, in any case, is due in the very short term. hence i was wondering what you intend to do with this particular bond because i guess the 2026 in any case is due in the very short term

Speaker 1: Yeah. I mean, so what we mean when we say that we have a better flexibility now, is, of course, that we, the volume outstanding that is, having this language is much lower. Should we, in the future, sometime, have transactions on the table, then we will manage that at that point in time. Yeah. yeah I mean, so what we mean when we say that we have a better flexibility now, is, of course, that we, the volume outstanding that is, having this language is much lower. i mean so what we mean when we say that we have a better flexibility now is of course that we the volume outstanding that is having this language is much lower Should we, in the future, sometime, have transactions on the table, then we will manage that at that point in time. should we in the future sometime have transactions on the table then we will manage that at that point in time

Speaker 11: Okay. So you may, at some point, you know, revisit the content vis-à-vis this bond when you sell the assets? Okay. okay So you may, at some point, you know, revisit the content vis-à-vis this bond when you sell the assets? so you may at some point you know revisit the content vis-à-vis this bond when you sell the assets

Speaker 1: ... Yeah, exactly. I mean, we, we will, we will have a look at that, at that point in time. ... Yeah, exactly. yeah exactly I mean, we, we will, we will have a look at that, at that point in time. i mean we we will we will have a look at that at that point in time

Speaker 11: Okay. Thank you. And my second question is about the hybrid. I was wondering what and when you intend to do regarding the non-call 26? Okay. okay Thank you. thank you And my second question is about the hybrid. and my second question is about the hybrid I was wondering what and when you intend to do regarding the non-call 26? i was wondering what and when you intend to do regarding the non-call 26

Speaker 1: I mean, we are first of all very happy with our hybrid. It's, as you know, running with the 3.125% coupon, which is of course very, very good level. So we are happy about that. I mean, we like the instrument, we like the levels we have today, and do not want to speculate about future actions regarding the hybrid. I mean, we are first of all very happy with our hybrid. i mean we are first of all very happy with our hybrid It's, as you know, running with the 3.125% coupon, which is of course very, very good level. it's as you know running with the 3.125% coupon which is of course very very good level So we are happy about that. so we are happy about that I mean, we like the instrument, we like the levels we have today, and do not want to speculate about future actions regarding the hybrid. i mean we like the instrument we like the levels we have today and do not want to speculate about future actions regarding the hybrid

Speaker 11: Okay. Thank you very much. Okay. okay Thank you very much. thank you very much

Speaker 1: Thank you. So next question, Pranava from Barclays. Thank you. thank you So next question, Pranava from Barclays. so next question pranava from barclays

Speaker 10: Thank you for taking my question. I have a couple of follow-ups on what you just said regarding the consent solicitation. With the 2026 and the 2029s together, that's roughly 30% of all your bonds outstanding. Clearly that is not giving you the amount of flexibility that you suggested. If I could ask, what was driving the timing of the consent solicitation that you did last year, if you had not lined up any specific action immediately? The second question regarding your hybrid, the hybrid language, of course, doesn't have the same kind of constraints, but I was wondering if there's anything that would potentially require consent solicitation as well? Thank you for taking my question. thank you for taking my question I have a couple of follow-ups on what you just said regarding the consent solicitation. i have a couple of follow-ups on what you just said regarding the consent solicitation With the 2026 and the 2029s together, that's roughly 30% of all your bonds outstanding. with the 2026 and the 2029s together that's roughly 30% of all your bonds outstanding Clearly that is not giving you the amount of flexibility that you suggested. clearly that is not giving you the amount of flexibility that you suggested If I could ask, what was driving the timing of the consent solicitation that you did last year, if you had not lined up any specific action immediately? if i could ask what was driving the timing of the consent solicitation that you did last year if you had not lined up any specific action immediately The second question regarding your hybrid, the hybrid language, of course, doesn't have the same kind of constraints, but I was wondering if there's anything that would potentially require consent solicitation as well? the second question regarding your hybrid the hybrid language of course doesn't have the same kind of constraints but i was wondering if there's anything that would potentially require consent solicitation as well

Speaker 1: To the first question, back to the transaction market and the transaction, it's also that transactions takes time. So, and going into transactions, it's very helpful with better visibility of our situation. So that is probably the answer to the first question. And now we think that we have that flexibility. I mean, the results were pretty spot on what we were expecting, so we are happy about that. At 26, I mean, that's very close, it's coming up now in the September, I think it is. To the first question, back to the transaction market and the transaction, it's also that transactions takes time. to the first question back to the transaction market and the transaction it's also that transactions takes time So, and going into transactions, it's very helpful with better visibility of our situation. so and going into transactions it's very helpful with better visibility of our situation So that is probably the answer to the first question. so that is probably the answer to the first question And now we think that we have that flexibility. and now we think that we have that flexibility I mean, the results were pretty spot on what we were expecting, so we are happy about that. i mean the results were pretty spot on what we were expecting so we are happy about that At 26, I mean, that's very close, it's coming up now in the September, I think it is. at 26 i mean that's very close it's coming up now in the september i think it is

Speaker 10: Thank you, and regarding the hybrids? Thank you, and regarding the hybrids? thank you and regarding the hybrids

Speaker 1: Sorry, I didn't get. I got the question. Sorry, I didn't get. sorry i didn't get I got the question. i got the question

Speaker 10: Regarding the hybrids, is there any language in there that would accelerate or impede your future, you know, change in portfolio? Regarding the hybrids, is there any language in there that would accelerate or impede your future, you know, change in portfolio? regarding the hybrids is there any language in there that would accelerate or impede your future you know change in portfolio

Speaker 1: No language in the hybrid, what I'm aware of, no. No language in the hybrid, what I'm aware of, no. no language in the hybrid what i'm aware of no

Speaker 10: Okay, thank you very much. Okay, thank you very much. okay thank you very much

Speaker 1: Thank you. So next question from John at Kempen. Thank you. thank you So next question from John at Kempen. so next question from john at kempen

Speaker 8: Hi, good morning. Just on the net letting, are you seeing any differences between geographies and asset classes in terms of terminations as well as leasing? Hi, good morning. hi good morning Just on the net letting, are you seeing any differences between geographies and asset classes in terms of terminations as well as leasing? just on the net letting are you seeing any differences between geographies and asset classes in terms of terminations as well as leasing

Speaker 1: I think, I think in general, what one can say is that the market that has been struggling in the downturn that we have been experienced is, first of all, office and in major cities, in bigger cities. We have had a softer downturn in regional cities, where it has perhaps not been a downturn. So, offices in major cities like Stockholm and Gothenburg and Malmö, then in Copenhagen and Helsinki, is struggling a bit more than we can see in regional cities. I think, I think in general, what one can say is that the market that has been struggling in the downturn that we have been experienced is, first of all, office and in major cities, in bigger cities. i think i think in general what one can say is that the market that has been struggling in the downturn that we have been experienced is first of all office and in major cities in bigger cities We have had a softer downturn in regional cities, where it has perhaps not been a downturn. we have had a softer downturn in regional cities where it has perhaps not been a downturn So, offices in major cities like Stockholm and Gothenburg and Malmö, then in Copenhagen and Helsinki, is struggling a bit more than we can see in regional cities. so offices in major cities like stockholm and gothenburg and malmö then in copenhagen and helsinki is struggling a bit more than we can see in regional cities

Speaker 8: And the positive turn in Q3 and Q4, is that skewed to any specific asset class or geography? And the positive turn in Q3 and Q4, is that skewed to any specific asset class or geography? and the positive turn in q3 and q4 is that skewed to any specific asset class or geography

Speaker 1: Could you repeat the question? Could you repeat the question? could you repeat the question

Speaker 8: So that net letting turning positive in Q3 and Q4, is that driven by any specific region or specific asset class? So that net letting turning positive in Q3 and Q4, is that driven by any specific region or specific asset class? so that net letting turning positive in q3 and q4 is that driven by any specific region or specific asset class

Speaker 1: No. No. no

Speaker 8: Clear. You mentioned that you're looking into improving the occupancy in more challenging markets. So what ways are you seeing in your first look into that? And is it- Clear. clear You mentioned that you're looking into improving the occupancy in more challenging markets. you mentioned that you're looking into improving the occupancy in more challenging markets So what ways are you seeing in your first look into that? so what ways are you seeing in your first look into that And is it- and is it- ... can it be easily solved with, say, CapEx, or does it even make sense to invest CapEx into these more structurally challenging buildings? ... can it be easily solved with, say, CapEx, or does it even make sense to invest CapEx into these more structurally challenging buildings? can it be easily solved with say capex or does it even make sense to invest capex into these more structurally challenging buildings

Speaker 1: I think it's very difficult to answer generally what to do. It has to be case by case. In some cases, it makes sense to upgrade the unit and adapt it to the wishes of the tenant. In other cases, it might be giving a discount. In other cases, it's just answering faster than we've done historically. So it's very different, and you have to look it on a case by case, on a case by case. But what we've said is that we have to be more flexible, we have to be faster, and we have to really listen into what the clients are wishing for, so that we can grab the clients that are out there before our competitors grab them. I think it's very difficult to answer generally what to do. i think it's very difficult to answer generally what to do It has to be case by case. it has to be case by case In some cases, it makes sense to upgrade the unit and adapt it to the wishes of the tenant. in some cases it makes sense to upgrade the unit and adapt it to the wishes of the tenant In other cases, it might be giving a discount. in other cases it might be giving a discount In other cases, it's just answering faster than we've done historically. in other cases it's just answering faster than we've done historically So it's very different, and you have to look it on a case by case, on a case by case. so it's very different and you have to look it on a case by case on a case by case But what we've said is that we have to be more flexible, we have to be faster, and we have to really listen into what the clients are wishing for, so that we can grab the clients that are out there before our competitors grab them. but what we've said is that we have to be more flexible we have to be faster and we have to really listen into what the clients are wishing for so that we can grab the clients that are out there before our competitors grab them

Speaker 8: Just maybe to ask it differently, do you see the CapEx spend in, say, 2026, 2027 to be higher than 2024, 2025? Just maybe to ask it differently, do you see the CapEx spend in, say, 2026, 2027 to be higher than 2024, 2025? just maybe to ask it differently do you see the capex spend in say 2026 2027 to be higher than 2024 2025

Speaker 7: ... reluctant to speculate, but I would say it's probably will be around the same level as this year. ... reluctant to speculate, but I would say it's probably will be around the same level as this year. reluctant to speculate but i would say it's probably will be around the same level as this year

Speaker 8: Okay. That's clear. Thank you. Okay. okay That's clear. that's clear Thank you. thank you

Speaker 5: Thank you. Next question, Paul May, Barclays. Thank you. thank you Next question, Paul May, Barclays. next question paul may barclays

Speaker 6: Hi, guys. Thanks for the presentation. Just, I got three questions, two are linked, so I'll ask those together. You've obviously mentioned you're focused on leasing, leasing, leasing. I just wondered what your view is on the rental value per square meter, i.e., are you focused purely on reducing vacancy, in which case you'll allow rent concessions, lower rents to come through? Or are you focused on rent per square meter, in which case you'll happily have a higher vacancy holding out for that higher rent. So just to get a sense there. And then linked to that, can you give us some color on where your current portfolio rental income sits versus market rent? Hi, guys. hi guys Thanks for the presentation. thanks for the presentation Just, I got three questions, two are linked, so I'll ask those together. just i got three questions two are linked so i'll ask those together You've obviously mentioned you're focused on leasing, leasing, leasing. you've obviously mentioned you're focused on leasing leasing leasing I just wondered what your view is on the rental value per square meter, i.e., are you focused purely on reducing vacancy, in which case you'll allow rent concessions, lower rents to come through? i just wondered what your view is on the rental value per square meter i.e are you focused purely on reducing vacancy in which case you'll allow rent concessions lower rents to come through Or are you focused on rent per square meter, in which case you'll happily have a higher vacancy holding out for that higher rent. or are you focused on rent per square meter in which case you'll happily have a higher vacancy holding out for that higher rent So just to get a sense there. so just to get a sense there And then linked to that, can you give us some color on where your current portfolio rental income sits versus market rent? and then linked to that can you give us some color on where your current portfolio rental income sits versus market rent You know, if all your tenants left and you relet all of your assets today, would that be at a higher or lower rent than you've currently got in the portfolio, assuming that there were tenants available for that? I've got another question, but I'll ask in a second. Thanks. You know, if all your tenants left and you relet all of your assets today, would that be at a higher or lower rent than you've currently got in the portfolio, assuming that there were tenants available for that? you know if all your tenants left and you relet all of your assets today would that be at a higher or lower rent than you've currently got in the portfolio assuming that there were tenants available for that I've got another question, but I'll ask in a second. i've got another question but i'll ask in a second Thanks. thanks

Speaker 7: Very good questions. If I may answer the second one first. It's a difficult one, but I appreciate the question, and it would be, it has to be booked a bit on the speculation side from my side. But I would say that we probably would reach roughly the same level as we have today. If every one of our tenants left, we would have some premises that would be rented on a high level, some on a lower level, but on average, roughly about where we are today. And the first one, could you repeat that one? Very good questions. very good questions If I may answer the second one first. if i may answer the second one first It's a difficult one, but I appreciate the question, and it would be, it has to be booked a bit on the speculation side from my side. it's a difficult one but i appreciate the question and it would be it has to be booked a bit on the speculation side from my side But I would say that we probably would reach roughly the same level as we have today. but i would say that we probably would reach roughly the same level as we have today If every one of our tenants left, we would have some premises that would be rented on a high level, some on a lower level, but on average, roughly about where we are today. if every one of our tenants left we would have some premises that would be rented on a high level some on a lower level but on average roughly about where we are today And the first one, could you repeat that one? and the first one could you repeat that one

Speaker 6: Yeah. It's just, it's just looking and thinking how, how you think about leasing. Yeah. yeah It's just, it's just looking and thinking how, how you think about leasing. it's just it's just looking and thinking how how you think about leasing which is sort of the focus. You know- which is sort of the focus. which is sort of the focus You know- you know- Is it just reducing vacancy and therefore you give rent concessions? Or is it we're focused on the rental level? Is it just reducing vacancy and therefore you give rent concessions? is it just reducing vacancy and therefore you give rent concessions Or is it we're focused on the rental level? or is it we're focused on the rental level

Speaker 7: It's completely- It's completely- it's completely-

Speaker 6: In which case we live with higher vacancy. In which case we live with higher vacancy. in which case we live with higher vacancy

Speaker 7: It's completely dependent on actually the market and sort of the demand in the market. In some markets, we really have to give concessions, lower the rent to get a tenant. It's better to have cash flow and not having cash flow. But in other market, it's better to wait because there, we know that there's demand there, and we write a lease contract over five or seven years, then we don't want to lock in a too low rent level, obviously. So again, boring answer, understand that, but it's really on case by case, depending actually on the particular building we are looking at. It's not dependent on the particular market or asset class, it's really on case by case. It's completely dependent on actually the market and sort of the demand in the market. it's completely dependent on actually the market and sort of the demand in the market In some markets, we really have to give concessions, lower the rent to get a tenant. in some markets we really have to give concessions lower the rent to get a tenant It's better to have cash flow and not having cash flow. it's better to have cash flow and not having cash flow But in other market, it's better to wait because there, we know that there's demand there, and we write a lease contract over five or seven years, then we don't want to lock in a too low rent level, obviously. but in other market it's better to wait because there we know that there's demand there and we write a lease contract over five or seven years then we don't want to lock in a too low rent level obviously So again, boring answer, understand that, but it's really on case by case, depending actually on the particular building we are looking at. so again boring answer understand that but it's really on case by case depending actually on the particular building we are looking at It's not dependent on the particular market or asset class, it's really on case by case. it's not dependent on the particular market or asset class it's really on case by case That's one of the things we've really been talking about here since back to basics, that we really need to have smart thinking about every premises we have within the portfolio. That's one of the things we've really been talking about here since back to basics, that we really need to have smart thinking about every premises we have within the portfolio. that's one of the things we've really been talking about here since back to basics that we really need to have smart thinking about every premises we have within the portfolio

Speaker 6: Yeah, I mean, similar to what we're seeing in other markets, as you say, it's very asset specific, not necessarily market or sub-market specific. Just the final one, you mentioned Entra is not hurting, but just looking at their reporting, vacancy's been increasing, and its earnings yield is much lower than your earnings yield. So you could argue that capital would be better spent selling Entra and basically buying back your shares. You announced, obviously, the share buyback today. I just wondered how you think about that and where the comment around Entra is not hurting us, it's benefiting us, when actually, if you look at the numbers, you could argue the opposite, that it would be better to rotate that capital elsewhere. Thanks. Yeah, I mean, similar to what we're seeing in other markets, as you say, it's very asset specific, not necessarily market or sub-market specific. yeah i mean similar to what we're seeing in other markets as you say it's very asset specific not necessarily market or sub-market specific Just the final one, you mentioned Entra is not hurting, but just looking at their reporting, vacancy's been increasing, and its earnings yield is much lower than your earnings yield. just the final one you mentioned entra is not hurting but just looking at their reporting vacancy's been increasing and its earnings yield is much lower than your earnings yield So you could argue that capital would be better spent selling Entra and basically buying back your shares. so you could argue that capital would be better spent selling entra and basically buying back your shares You announced, obviously, the share buyback today. you announced obviously the share buyback today I just wondered how you think about that and where the comment around Entra is not hurting us, it's benefiting us, when actually, if you look at the numbers, you could argue the opposite, that it would be better to rotate that capital elsewhere. i just wondered how you think about that and where the comment around entra is not hurting us it's benefiting us when actually if you look at the numbers you could argue the opposite that it would be better to rotate that capital elsewhere Thanks. thanks

Speaker 7: I would agree to some extent to what you're, what you're saying, that we could probably, if we had the cash, use it wisely as well, not just having it in Entra. Entra is also in a market where demand has fallen a bit, compared to as it was before, but not as much perhaps as in Stockholm or Copenhagen. So I was tilting more towards that when I said that Entra is not hurting us, at least. I would agree to some extent to what you're, what you're saying, that we could probably, if we had the cash, use it wisely as well, not just having it in Entra. i would agree to some extent to what you're what you're saying that we could probably if we had the cash use it wisely as well not just having it in entra Entra is also in a market where demand has fallen a bit, compared to as it was before, but not as much perhaps as in Stockholm or Copenhagen. entra is also in a market where demand has fallen a bit compared to as it was before but not as much perhaps as in stockholm or copenhagen So I was tilting more towards that when I said that Entra is not hurting us, at least. so i was tilting more towards that when i said that entra is not hurting us at least

Speaker 6: Okay. So the underlying market is a bit better positioned than some of your other markets. Is that? Okay. okay So the underlying market is a bit better positioned than some of your other markets. so the underlying market is a bit better positioned than some of your other markets Is that? is that

Speaker 7: I would say so, yes. Yes. I would say so, yes. i would say so yes Yes. yes

Speaker 6: Yeah. Okay, perfect. Thank you very much. Yeah. yeah Okay, perfect. okay perfect Thank you very much. thank you very much

Speaker 7: Thank you. Thank you. thank you

Speaker 5: Thank you. Next question, James from Green Street. Thank you. thank you Next question, James from Green Street. next question james from green street

Speaker 12: Good morning. You mentioned some one-off costs associated with canceling projects. Would you possibly be able to let me know if the number of projects canceled was higher than usual? Maybe what the nature of these projects was, how much CapEx was associated with this, and then maybe how or why you made the decision to cancel these projects? Good morning. good morning You mentioned some one-off costs associated with canceling projects. you mentioned some one-off costs associated with canceling projects Would you possibly be able to let me know if the number of projects canceled was higher than usual? would you possibly be able to let me know if the number of projects canceled was higher than usual Maybe what the nature of these projects was, how much CapEx was associated with this, and then maybe how or why you made the decision to cancel these projects? maybe what the nature of these projects was how much capex was associated with this and then maybe how or why you made the decision to cancel these projects

Speaker 1: I mean, that was only stage ones, that is, of course, something that is we are always doing, sort of going through actually every quarter. But then, of course, sometimes you put it more on a spot, not any specific areas or. So more business as usual, but a little bit higher than usual. I mean, that was only stage ones , that is, of course, something that is we are always doing, sort of going through actually every quarter. i mean that was only stage ones that is of course something that is we are always doing sort of going through actually every quarter But then, of course, sometimes you put it more on a spot, not any specific areas or. but then of course sometimes you put it more on a spot not any specific areas or So more business as usual, but a little bit higher than usual. so more business as usual but a little bit higher than usual

Speaker 12: Okay. Thank you. Okay. okay Thank you. thank you

Speaker 5: Thank you. Next question, Fredrik Stensved, ABG. Thank you. thank you Next question, Fredrik Stensved, ABG. next question fredrik stensved abg

Speaker 2: ...Thank you. Morning. I have two follow-ups on the transaction market comment you made earlier, Pål, where you alluded to a relatively strong market on the sort of back of cheap financing. So the first one is, are you able to call out any specific segments in your current portfolio, which might be up for sale and where you believe interest would be high in the market? And secondly, looking at the transaction market and the interest and your decision to do share buybacks today, do you believe it is possible to find sort of, you know, acquisitions of decent volume or size in the direct market, which are more attractive than your own share at this moment? Thanks. ...Thank you. ...thank you Morning. morning I have two follow-ups on the transaction market comment you made earlier, Pål, where you alluded to a relatively strong market on the sort of back of cheap financing. i have two follow-ups on the transaction market comment you made earlier pål where you alluded to a relatively strong market on the sort of back of cheap financing So the first one is, are you able to call out any specific segments in your current portfolio, which might be up for sale and where you believe interest would be high in the market? so the first one is are you able to call out any specific segments in your current portfolio which might be up for sale and where you believe interest would be high in the market And secondly, looking at the transaction market and the interest and your decision to do share buybacks today, do you believe it is possible to find sort of, you know, acquisitions of decent volume or size in the direct market, which are more attractive than your own share at this moment? and secondly looking at the transaction market and the interest and your decision to do share buybacks today do you believe it is possible to find sort of you know acquisitions of decent volume or size in the direct market which are more attractive than your own share at this moment Thanks. thanks

Speaker 7: Yeah, thank you. I think the transaction market, as I said, it's driven now by a lot of funding being available to low spreads. So that's the main, main driver. But also, I think there's been a couple of years where companies has not done that many transaction, and that's also driven up demand a bit. They see potential now for restructuring their portfolios. If there are any specific parts of our portfolio which has extra interest from potential buyers? No, I can't really say that at this stage, actually. No, we have lots of discussions with people, and it's a broad palette of different types of discussions, I would say. And now I have to ask you to repeat the other questions. Yeah, thank you. yeah thank you I think the transaction market, as I said, it's driven now by a lot of funding being available to low spreads. i think the transaction market as i said it's driven now by a lot of funding being available to low spreads So that's the main, main driver. so that's the main main driver But also, I think there's been a couple of years where companies has not done that many transaction, and that's also driven up demand a bit. but also i think there's been a couple of years where companies has not done that many transaction and that's also driven up demand a bit They see potential now for restructuring their portfolios. they see potential now for restructuring their portfolios If there are any specific parts of our portfolio which has extra interest from potential buyers? if there are any specific parts of our portfolio which has extra interest from potential buyers No, I can't really say that at this stage, actually. no i can't really say that at this stage actually No, we have lots of discussions with people, and it's a broad palette of different types of discussions, I would say. no we have lots of discussions with people and it's a broad palette of different types of discussions i would say And now I have to ask you to repeat the other questions. and now i have to ask you to repeat the other questions

Speaker 2: Yes, sure. So the second one is, on the back of your decision to do share buybacks and the current discount NAV and the transaction market today, do you believe it is possible to find acquisitions in the direct market, which are more attractive than your own share? Yes, sure. yes sure So the second one is, on the back of your decision to do share buybacks and the current discount NAV and the transaction market today, do you believe it is possible to find acquisitions in the direct market, which are more attractive than your own share? so the second one is on the back of your decision to do share buybacks and the current discount nav and the transaction market today do you believe it is possible to find acquisitions in the direct market which are more attractive than your own share

Speaker 7: Possible, but difficult. Possible, but difficult. possible but difficult

Speaker 2: No, that's good enough. Thank you. No, that's good enough. no that's good enough Thank you. thank you

Speaker 7: Thank you. Thank you. thank you

Speaker 5: Thank you, Fredrik. That was actually the last question for today. Thank you all for listening, and have a great day. Thank you, Fredrik. thank you fredrik That was actually the last question for today. that was actually the last question for today Thank you all for listening, and have a great day. thank you all for listening and have a great day