Hello everyone, and welcome to the Castellum Q4 Report 2019. Today, I am pleased to present CEO Henrik Saxborn and CFO Ulrika Danielsson. Throughout the call, all participants will be in listen-only mode. Afterwards, there will be a question and answer session. I will now hand you over to Henrik Saxborn. Please go ahead.
Thank you very much, welcome everyone to this Q4 2019. I will start to describe what we've done in 2019, then we will also give a view on what we see in front of us this year and the next coming years. Can we start, please, with changing the slide? What we have done this year, 2019, we have worked hard in the strong markets, we have worked with position us for the future. It has been lot of ongoing negotiations and a lot of working with the existing pipeline. We have rented out in the same pace that we did 2018, more or less over SEK 400 million in contract volume. We have, in the last quarter, achieved new top rent levels in our portfolio. We have also seen contracts all over the portfolio getting to new levels simply.
It has also been the year where we continued to renegotiate. We have renegotiated in up to actually amazing 22%, that is already in the P&L. The rent levels in the like-for-like portfolio has been going up with 4.4% compared with last year. We have seen effects on our efficiency program. I can proudly announce that we have saved SEK 60 million in the portfolio. That has also been something that we have benefit from when we're achieving our 7% growth that we created this last year. The existing portfolio has been the strongest contributor to the growth in the portfolio the last year. We have also strengthened the balance sheet. The properties have increased with SEK 4 billion and are now worth approximately SEK 95 billion. To this, we should add that we built the properties for SEK 3 billion.
We bought the properties for SEK 3 billion, but we sold also at the same time for SEK 4.5 billion. This means that we only net invested SEK 2 billion this year. That was a contributor also to that we lowered the LTV down to 43%, together with the growth of the values, of course. We have constantly lowered LTV since we bought Norrporten in 2016 and has one of the strongest, or maybe the strongest balance sheet in the Nordics right now. It also been a year when we took the next step into Euro bond market and benefited from the attractive interest rates and longer durations. We also made our new business, United Spaces, profitable. All in all, an active year, stronger balance sheet, and better position for the future to come. With that, I would think I leave the word to Ulrika.
Next slide, please.
If we go to the P&L of the income statement, when we close the book for 2019, we can conclude that income from property management increased with 7%. That was due to a good rental market expressed in higher rental values, cost control, projects completed, and lower funding cost. We also had a value uplift of roughly just above 4% due to strong cash flow, project gains, and lower yields. The last quarter's value uplift of roughly 1.5% was mainly cash flow-driven. A negative change in derivatives, finally, taxes of roughly SEK 1.1 billion, of which SEK 165 million was cash flow-driven. This in all, together with a strong balance sheet, is the reason for the board to propose a dividend of SEK 6.50 per share, that is also an increase with 7%.
If you go to the next slide, please, and go into the NOI. The story in the development of the NOI is pretty much the same as previous quarter, meaning that the biggest contributor is the like-for-like portfolio of pure management that increased with SEK 190 million roughly. That was mainly driven by top-line growth and good cost control, followed by developments. Since we are a net seller 2019, it means also that we lose cash flow compared to one year ago with SEK 172 million. Finally, the coworking part delivers a positive result, even if it's small, but in that industry it is pretty rare. If we go to the next slide. We have the rental market.
If we look into the history, the rental market has, as you all know, been strong the last years, and the organization has therefore made a lot of negotiation. That is the reason for the like-for-like growth of 4.4%, apart from indexing rental income. Rental income is a net of rental levels, vacancies, and incentives. If you split that in different buckets, 5% is the actual increased rental levels. However, we have some increased vacancies, but also lower income from tenants paying up for leaving earlier, and that means that the net top-line growth is 4.4%. Another value-creating part is the development of the projects. If we add that, the total growth in the portfolio is 7%. As we have mentioned earlier, the net selling means that the top-line growth lands on 4.4%.
If we then go to the next slide and look into the market.
If you look at what we achieved on the rent net leasing, we had better last quarter 2019 than last year. We had a net leasing of SEK 14 million, the growth was actually SEK 146 million. That made a net leasing ending up for the year -SEK 24 million. This consists of mainly leasing out in the existing portfolio and less in the projects than we have seen in 2018. Going forward, we already know that we will have more signed contracts in the projects 2020 than last year. It will be important difference going forward. That means that we will have one of the best leasings out on the new developments next year that we ever seen. To summarize, a good leasing activity, little bit more turnover in the leasing and portfolio than earlier years.
Good new contracts waiting for building permission as or something similar. If you're looking at the supply, we can look at the next slide, please. It's very interesting actually looking at the offices in the three city that we take as example. The simple is that we can see that the supply is still too small in the near term. Even if you see a lot of more developments in the town, it will be built approximately a 1%-1.5% of the stock. It's just in line with expected growth. It means that it's a very limited risk in the markets going forward. The reasons behind this is still slow zoning plans, and it means that we will still see low vacancy rates and need for more density in our existing offices. It's the same picture in all our cities except Copenhagen.
We can look into rental levels and vacancies. If we take the next slide, please. We can conclude that increase in average for the markets in Stockholm has the, according to analyst data, the increase been approximately 7% all over the last year, and in Gothenburg approximately 4% generally in the office. Said that we increased our rents in the Q3 P&L with 22% on the done negotiations. We also have noted that we have done the best rental levels that we ever done. For one example, we leased out in Stockholm our best CBD location for SEK 7,500 sq m a year. That's a new top rent that we signed, and we signed it actually two weeks ago. The same pattern is still in the rest of the towns for all of our markets.
We see still a strong demand in the market, and we still have very few left vacancies going forward. We will see that when we go through the project as well. If we look at the logistic market, it's divided in attractive location. There is more or less no vacancies in efficient assets. This means that the rents are increasing in the last mile locations. If we look at something called the national or international logistic assets, the rents so too can be huge and be more or less anywhere in Sweden or you can say that rents are between SEK 500- SEK 850 sq m in a year. If they are located outside Stockholm, the rent will be approximately a little bit less than SEK 1,000 sq m.
If we are talking last mile, we now see top levels in our portfolio SEK 1,740 sq m in a year outside Stockholm. We're talking outside Malmö and Gothenburg, rents are up to SEK 1,000 compared with the old rent levels we had in logistic asset. To summarize. A strong, stable market and limited supply continues in our markets. We can take the next slide, please.
A little about of the cost side. If we say something about the property cost, they have moved downwards or decreased if we put higher property taxes apart. Despite selling away costs or moving costs to other lines such as ground rent. This has been created despite high unit prices in the market on heating, water supply, electricity, et cetera. The main reason is the efficiency program that Henrik mentioned earlier that has so far saved us SEK 60 million. If we then look into the interest rate cost or the interest rate expenses. Castellum after last year's work with lowering the LTV, of course, that work has been supported by increased property values. We have also worked with the level of debt in absolute amount.
Since 2016, the debt portfolio has increased with only SEK 2 billion or 6%, while the property value has increased with SEK 24 billion or 34%. As you all know, the last year's low interest rate environment has meant that the easiest way to bring down the average interest rate is to bring in new debt volume. Despite that, Castellum only has increased with 6% and has almost the same volume as one year ago. We have reduced the funding cost with roughly 20 basis points in average. The duration in the interest rate portfolio is 3.3 years, and we are comfortable with that in this low interest rate environment. Another duration that is almost more important, since the margin paid to debt investors bank is the main part of the funding cost, is the capital duration.
I do realize that companies have different way to measure and look at this, either as a duration reflecting promises to lend money without knowing the funding cost or a duration under which we know the funding cost. In Castellum, the first one we call capital duration, and that was 3.8 year at the year-end. That, the latter we call credit price maturity, and it was 3.2 year at the year-end. That, the last one is the metric that we are focusing on when looking into duration. So duration for Castellum is equal to knowing the funding cost. Finally, taxes. Despite that Castellum has tax losses carried forward, we do pay tax, and that is due to that almost all of it are locked in acquired companies and cannot be used for the whole group.
We also had big reconstructions and depreciation possibilities the last quarter due to completion of projects, which means that we brought down the paid tax isolated quarter. The efficient tax paid, if we would not have had any tax losses carried forward, was 9% for 2019, and maybe that can be a guidance for next year, everything equal. If we go to the balance sheet on the next slide. The balance sheet of Castellum is strong and the LTV continues downwards and was at the end 42.9%. The valuation yield was unchanged compared to Q3, 5.1%. This strong balance sheet gives us an NAV as the end of December 2019 of SEK 190 per share, which indicates a growth of 11% despite a dividend compared to one year ago.
When we do talk about NAVs, I think it's worth mentioning on the next slide that new NAV metrics will be applied from Q1 2020, and they are in line with EPRA's new definition from this year. The very short version is that the two NAVs will become three, and the NAV that Castellum are focused on is the long-term NAV or the EPRA NAV, and that will tomorrow be equal to EPRA NRV. In the end for Castellum, as we see it now, it's just a rebranding for us. If we go to the next picture. Regarding the property portfolio, Castellum focus on office, public sector and logistics warehouses, and they together stand for 86% of the portfolio from a value point of view. The biggest regional exposure is to Stockholm, followed by Gothenburg or West from the slide.
The average valuation yield is, as I said earlier, the same as in Q3, but 20 basis points lower compared to one year ago. Regarding uplift for the full year, offices have shown the biggest uplift, and from a geographical point of view, it is Stockholm that showed the highest uplift. I will come back to valuation later. Henrik, the projects.
I think I will talk, if you look at the next slide, on property markets, giving you some view on from the internal side. We have had a turnover in Sweden on SEK 218 billion approximately. It's done 447 deals in the market. We have experienced huge interest for the direct market. We have seen that on the prices. We have seen foreign investors execute 30% of the deals. That's a high figure of historical reasons. You can more or less say that the simple way of looking at it, yields down still continues down. My view is that we see that continues into the market going forward. You can more or less say that all types of existing assets in our part of the Nordics with lower yields except for retail.
A very strong demand and less investor opportunities or opportunities still in the market. It's a extremely strong market we are looking at. I guess let you go to back to valuation, Ulrika.
Sorry. The valuation on the next slide. We have an internal valuation, the balance sheet, that amounted roughly SEK 95 billion. This year as well as previous years, we let an internal valuer forum do a valuation of 55% from a valuation point of view of the portfolio. That part of the portfolio reflects Castellum spread, you could say, in different asset classes and geographic. Comparing Castellum and the external valuation, it shows that Castellum is 1.8% above the external value with an average deviation of 6.2%, and that is well within the uncertainty scope that is normally 5%-10%, depending on type of asset. However, there is differences within different asset classes, where you could say that Castellum are more positive to logistic and public sector, and less positive to retail compared to the external valuation.
That is about the same story as last year, but the differences is, however, smaller. If you do look into what drives value changes to last quarter, it is mainly cash flow, and it should be like that in the market we are in and the fact that we know the CPI updates for 2020. As you can see, the impact from selling is negative, and that is mainly connected to us leaving Sundsvall in the north and four regional assets in Uppsala. That negative impact is, however, mitigated by big deferred tax income further down into the P&L account.
If you look at the next slide, please. We have this map over all the projects or developments. I would just want to conclude that the pipeline is large. What you now see that we have SEK 10 billion plus SEK 4 billion under production. It means that we have SEK 14 billion that will be started or are under production all over Sweden at the moment. It's not only large, it's also divided into many mid-size projects. We are not depending on one single one, not one zoning plan or one political decision, and that's very good going forward. The yield on the total cost is attractive compared with the market yield still. The office are completed, are average on 6.5% or 6% yield compared with the market, and we still know that we can do logistics approximately on a 7% yield.
This is very profitable going forward, simply. If we go to the next slide, please. We can see the development pipeline that's ongoing. Here we have the ongoing SEK 2.4 billion, and we are more or less going to double that during 2020 if it's according to plan. The next coming pace of projects together with the ones that are ongoing has a good pre-rent situation. This looks really good. I can also state that on the first line, we have Örskäret, and that's the same development that's called Stockholm Waterfront earlier. Here we state that we have 28% rented out. We also will announce now today that we are renting out to our co-working concept.
It means that we will only have 3,600 sq m left in that development in the first phase before we start to develop new parts of the development. It's also a site where we have top rents on these markets. Going forward to the next slide, please. We have some examples. I'm going to run through them quickly. We have the Swedish Courts, the Swedish Courts that you know that we're building in Malmö. 25,000 sq m, SEK 1.2 billion. Here we're more or less only waiting for a building permission from the municipality. When done is signed, we will start the development, and you will see that coming into the net leasing. That's not in the figures right now. That will come hopefully Q1 this year. We can take the next slide, please. Here we have some more developments. We have the Greenhouse.
We are in Helsingborg right now. We have started it, 7,000 sq m. It will be completed summer 2022, and it's leased out now to 31% already before we started. It will also include all the new technique we have in houses. This will also be included service concept we have. We're really looking forward to getting that into the market. We also have here Dragarbrunn. That's what's called Kungspassagen. It's in Uppsala. It's something we have worked with for a long time. It's 12,000 sq m, more or less on the train station in Uppsala. We lease that out to 69%. It's under development, so it looks really, really good. It will be completed end 2021. We have [Ängrabacken] That's on the left-hand side. It's 4,000 sq m. It's under marketing right now.
It's the first house in a new area that will be very interesting for the town. It will be a new area with apartments, offices, and close to one of the best restaurant locations in Gothenburg on old industrial land, absolutely out by the water. It's somewhere I would like to live, but now we're building an office instead. The last one on the right-hand side, it's down in Lund. I also want to say it's not only offices, it's also service and logistics for the cities we are in. This is something we can build rather quickly and getting high density into the areas we are. With good leasing activity, this goes past and supports the cash flows already next coming year. The last one is Säve, the airport.
What's important now is that we completed the acquisition on Säve in the end of last year. That was a really favorable deal for us. It means that we can invest over lower investments with SEK 1 billion compared with what was done in the first deal. It means also that we can move faster. As we have stated earlier, simply is that we expect to invest approximately SEK 10 billion the coming years in this area. It will be logistics, but it's also be a development center for sustainable transportation, both in the air and on land, and the biggest heliport in the Nordics. This is extremely interesting. On the next slide, you have hopefully seen in the results that we turned United Spaces around and had positive figures in this already on this year.
It's very positive and it's sustainable. What's new is that we will now start on four new sites in 2020, 2021 in Uppsala, Stockholm, Helsingborg, and Gothenburg. Together they will double the volume, and it will be more to come. Simply like that. We go to the next slide, please.
Funding cost. Castellum likes flexibility and want to have many tools in the toolbox in order to match the organization or the property portfolio's need for money. We have been active in three markets or used three tools for quite a while now. The banks, the bond market, and the CP market. We experience good access to funding within the Nordic banks and at the moment stable margins despite new regulation put onto them. However, that can change, and it will almost likely do. The demand in the bond market is good. There is a lot of money out there seeking placement. Focus in the market is, as we experience it, two to five years in the Swedish bond market, even if you can do a bit longer duration in smaller amounts, but a little bit longer in the Euro bond market up to seven to eight years.
The short part of the capital market, the so-called CP market, is stable. The prices in absolute amount has increased due to increased STIBOR, but the spread has come down. Despite that, we continue to see the CP market as a cost arbitrage compared to lending in banks and has a volume outstanding of roughly SEK 5 billion. That, of course, is fully backed up by unused credit facilities. What has Castellum done 2019, if you look into the next slide. When we closed the books for 2019, we can state that we have negotiated SEK 7.8 billion in bank debt and prolonged the duration. We have closed down bank debt of roughly SEK 1.6 billion. We are a net issuer in the Swedish bond market. We have issued SEK 4.1 billion on different duration from 2- 10 years.
We have issued NOK 850 million for a 10-year bond and EUR 400 million for seven years. High activity. At the moment, we do see that even if we have issued a lot of bonds, that we still will have a considerable volume of bank debt mainly in RCFs since, as I said earlier, they offer a good liquidity and flexibility for us. Regarding the CP market, we still continue to use that market for cost reasons. At the year-end, we have roughly 20 billion in non-used debt commitments, of which roughly half is backup facilities and liquidity reserve. The rest stands ready for being used. With that said, the access to different debt funding sources, different debt markets, together with a really strong balance sheet and good underlying cash flow means that Castellum has really strong financial position going forward.
If you take the next slide, I think that's maybe the most important one. What's going to happen 2020? If we look into the market, we still can see the Nordics looking just in a stable position as it is now going forward. We can't see anything else than its huge demand. In our view, with more to come on the value growth, we can see the direct market has capacity to create strong growth on returns, and we're also seeing the return on equity or the demands on return on equity going down. We are positive on value growth going forward. We can see the supply will still be limited to 1%-1.5%. In the near future, we can't see anything else that would interrupt the market in that respect.
If you look at the Castellum side, if the development continues towards e-commerce in the logistics, it's strong. It needs to be rebooted. It needs to have new structures, you will still see tenants looking for efficient way to do supporting the e-commerce that are growing. You will see the strong developments going forward on sustainability. It's really here now in the Nordics. You wish it to be more efficient, you therefore want to have more density in your office, since the prices is still stable or upwards simply for the tenants. If you're looking at the Castellum way or this Castellum, I can conclude now that we are very strong. We have a strong balance sheet, we can create our own growth. I think that's one of the most important things. Whatever happens, we can do this. We have capacity in development pipeline.
They have existing portfolio that gives us growth and better quality than we ever had. We know that we can start SEK 10 billion in the next coming two years, and that will, of course, impact especially 2021. In the existing portfolio, there are three things that we'll be able to create growth. It's still the negotiation power, more efficiency that we have shown that we can do and we will continue doing. We know the knowledge, and we know what we're going to do. This strong balance sheets that are coming back to, that we will benefit from. We have the capacity to take care of our tenants simply. I then want to conclude this and thank you for listening and start with some questions if you take the next slide, please. Thank you.
Thank you. Ladies and gentlemen, if you do wish to ask a question, then please press zero one on your telephone keypad. If you wish to withdraw your question, you may do so by pressing zero two to cancel. Once again, that is zero one if you would like to ask a question. Our first question comes to the line of Niclas Höglund from Nordea. Please go ahead. Your line is now open.
Yes. Good morning. Niclas Höglund, Nordea. Couple of questions from my side. If we first start out with the rental market. You give a pretty positive view here. You weren't that positive in the first quarter of the year, but then it seems like things have been turning on the positive side. You're mentioning that you awaiting the building permits for 2020 and should be then supported at least on the growth letting side. Could you share some numbers in total and the timing? We know the court in Malmö, but for the other projects.
I can say that the big bulk that we will start with is the Q1 in Malmö. As you said, the court, we are waiting for that one, hopefully Q1 then. I think you have to wait another quarter on E.ON, then we hopefully will have the permission in place there. We have smaller projects that we have not named that is the same category, they will give us permission during the year more, I expect. You will have a line of mid-sized ones coming in more or less in a stable pace than going forward in the rest. The big difference is, of course, that we will start over SEK 2.5 billion or around SEK 2.5 billion in the first half year.
Right. Any numbers that you would like to share with us? If Malmö is around 105 or something like that, isn't it?
Sorry. Excuse me. I didn't get it. Is it around?
Sizes. Could you share some numbers on growth support?
I would love to come back to that. Say, simply take out the SEK 2.5 billion that we talked about and then pace into the numbers the rest of the SEK 10 going for this two years then going forward.
Right. My second question is related to the property market. You had a pretty decent finish to the year with close to 1.6% revaluation support. I was a little bit surprised that yield assumptions remained unchanged given that at least we've seen a couple of transactions, and you've been talking about pretty good demand. Why aren't the yields coming down?
I think it's two reasons, actually. First of all, it's the value. In this division you have different things, but if you start with the value, we are in a pattern of lower yields, as we explained. If you ask where are we right now, that is very complicated to getting the right price, honestly. I'm positive on deals going forward. To have that said. The second thing is actually in this, you see in our numbers, one figure that gives us a little bit more tricky is called the vacancy figures that are changing in that valuation. That gives you that we are still on the 5.1 in that one. I can support your view and say, let's see where we are in Q1 and Q2.
On my final question. Given the quite positive outlook and the support from projects and support on value, why are you keeping your balance sheet this strong right now? Isn't it good opportunity to utilize the strength, or are you waiting for something to happen?
We want to do really good deals, of course, and of course it's on that one. I think we definitely would like to, in the future, benefit from the strong balance sheet.
Okay. Those were my questions. Thank you.
Thank you.
Thank you. Our next question comes to the line of Philip Hallberg from Danske Bank. Please go ahead. Your line is now open.
Yes, good morning. I wondered if you could share some light regarding the quite large terminations that you had here in Q4 in both the Region West and the Mitt Region? I know that in Q3 you talked about you moving around some tenants in the logistics side. Could you give any updates regarding this quarter?
No, I agree. We're expecting a higher turnover in the portfolio going forward. I think that's part of the pattern you see in the market. In this case, on the negative side, I like to talk about the positive and negative, but if it's going to talk only on the negative, I know that the largest ones is two larger contracts that are giving us notice. One is definitely moving, and one other we hope to renegotiate and keeping them in our assets. Yes, you still expect a turnover. The ones that we're talking about is, in this case, I should say, more or less government investments or government companies. That said, it's not a trend we're saying. It's more something that you see all over the place. We're helping our tenants to get more efficient. This is something we're getting used to.
Think in future of turnover, that we have to be a winner, and we're going to be a winner in that. On the negative side, simply, the most important part is that we turned around the last Q4 net leasing to a positive figure compared with last year.
Okay. Thank you. I have another question regarding, you talked about, and you've talked about it for quite some time, that it's a very fierce competition on the transaction market, and that the way going forward is more related to project investments. You state that you have roughly SEK 10 billion to invest here in the coming two years. I guess this is true for most other companies as well, and we have seen a quite large ramp-up between both listed and unlisted players within product development. I'm not worried about the supply side, but what are your views on competition for new tenants going forward in relation to new project investments?
I think it's very important to look at the pre-let figures on the developments, and that's why we focus on that. We have high demand on the pre-let before we starting anything from our side. The good thing with the pipeline of development is that you, in the last minute, can decide if you're going to do it or not going to do it compared with the market. I think that's the figure they're going to look at, and as we stated earlier, we are looking at what's possible to build and are planned to build the next coming years. It looks that we still are on a pace on 1%-1.5%, and I was actually expecting that figure is going to be higher, but we are at 1%-1.5% going forward the next coming years, what we can see at least in our towns.
On the competition side, I would honestly love to say that we was in our towns building a little bit more to support the groups that are in the towns right now. Not worried at this moment, and that, of course, something that we are following very closely.
Okay. Thank you.
Thank you. Just as a reminder, if you would like to ask a question, please press zero one on your telephone keypad. Our next question comes to the line of Erik Granström from Carnegie. Please go ahead. Your line is now open.
Thank you. Good morning. I had a few questions as well. I would like to start off, first of all, with your investment pace within the portfolio. You're reaching close to SEK 3 billion for 2019 or close to SEK 2.8 billion, which has been sort of the figure that you've had for a number of years now. It seems to me, Henrik, that now your project portfolio is increasing. Is this still sort of a figure that we should expect for 2020 and going forward, or do you already at this point are able to give us some other figure for 2020 in terms of your planning?
No. The pace that we will have 12 months from now, I expect that the pace for that month is going to be double that it is right now. It means that we can't get the volumes up, but more quicker. It's all depending on the big two ones now going forward when they start. The pace going to go up. We're going to double the pace on the development side. It's just a question about when they start, simply.
Okay.
If you take isolated one month from December compared with the one month December now, one year, I think it's double. If we give you the rough figure where we're going to go for the total of 2020, maybe we're going to pace it up to SEK 3.5 billion, something like that, to be honest. We are going for double the pace simply going forward.
Okay.
Was that clear?
Yep, absolutely. Perfectly clear. Thank you very much.
Thank you.
Just to go back again and talk about those two main projects that you have in mind, it seems like they've been a little bit delayed in terms of the permission process or the permit process. Do you feel right now is that Q1, Q2 indication, is that something you have more firmly now from the invested parties in the discussion or is this still a little bit up for grabs?
If I divide them, we take the courts first. I should say the permit is going to be there March, April, according to plan or to be 100% clear. I don't have any documents more that they have to be signed except the building permission, then we're done. Contract is done, everything contract, everything is done. It's just the building permission coming forward. On the E.ON site, it's still under design compared because of some government demands that we have to clear. That's out of our hands, but we are still waiting for getting that through the procedures. If that takes one or two months longer, we don't know. I should case that in during the Q2 right now. If that moves, then we can come back with more information simply.
Okay, thank you. My final question was actually regarding your trend or your plan that you had for Finland. It's been a year and a half now, I believe, since you made your first and at this point, only acquisition in Helsinki. You were looking into increasing your portfolio there because I assume you would like to get some more economies of scale. What's the plan in Finland? Is competition simply too high or is it something else that has sort of changed your mind or view of Finland and Helsinki?
No, it's simply, we're not the only one in love with Finland, to be honest. We're not dancing right now. Someone is stealing the bride on the dance floor all the time. Yes, it's a good competition. It makes us a little bit slower, and we have all the time to adjust our requirement for return. We're looking into that, and honestly, we're spending a lot of time on how we will look in Helsinki, what's the opportunities going forward. My view on growth is still the same as it was earlier, but we're not the only one to want to dance simply.
Okay, a little bit more aggressive on the dance floor, and you should be good to go.
Yeah.
All right. Thank you very much. Those are my questions.
Thank you.
Thank you. As there are no further questions registered at the moment, I will hand the word back to the speakers. Please go ahead.
Yes. We thank you everyone for listening. If we don't have any touch with you in the next coming two or three months, we hope to have a call with you in April again. Thank you very much.
This now concludes our conference call. Thank you all for attending, and you may now disconnect your lines.