Release Date: February 11, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: In the report, you mentioned that the macroeconomic backdrop remains weak and that you expect it to improve over the coming quarters. Are you already seeing any change in your leasing discussions with tenants? A: Ulrika Hallengren, CEO: At the moment, it's approximately the same as we've seen during the last year. Tenants are keen to find the right solution and are willing to pay for quality. The main question is how to find the best way to work ahead. We see a mix of expansion and downsizing, with more positive trends, but decisions take time.
Q: On the Granitor portfolio acquisition, do you see any asset management potential in the six yielding assets, or is it mostly from the two development properties in Lund? A: Ulrika Hallengren, CEO: It's a good running portfolio with possible improvements in energy savings and tenant improvements, but overall, it's a very good running portfolio.
Q: Regarding the funding of the Granitor acquisition, how should we think about this and the capital structure as a whole? A: Arvid Liepe, CFO: We can fund the transaction with existing credit facilities, which would have an immediate effect on LTV by approximately 2 percentage points. We're not worried about this increase as cash flow generation will gradually bring LTV downwards. We're comfortable with net debt to EBITDA around 10.5 times.
Q: Are you considering making a material additional acquisition at this point in time, and would you consider issuing shares? A: Arvid Liepe, CFO: We have the mandate to issue shares up to 10% of the total number of outstanding shares. It's a tool we can use if the opportunity is right and the size justifies it. However, the current transaction's effect on LTV is not large enough to warrant using this tool.
Q: Could you give examples of terminations expected in Q1 and how large they are? A: Ulrika Hallengren, CEO: The largest expected termination is from SAAB, moving to Lund, which will be about SEK30 million.
Q: The vacancy rate increased by 2 percentage points quarter-on-quarter. Why are you confident it will decrease by the end of '25? A: Ulrika Hallengren, CEO: It's a combination of new leases moving in and ongoing discussions. For example, in Helsingborg, the numbers will improve by at least 2 percentage points in October. We have good products and enough discussions to maintain a positive flow.
Q: How much do you plan to invest in '25 compared to the SEK2 billion in '24? A: Ulrika Hallengren, CEO: Without giving a specific forecast, we usually expect between SEK1.5 billion and SEK2 billion. It might be closer to SEK2 billion, depending on the largest projects.
Q: Regarding the Granitor acquisition, when do you expect to start projects on the land acquired in Lund? A: Ulrika Hallengren, CEO: The industrial part could proceed quickly, but it will take time. We don't expect to start this year.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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