Thank you, and hello. Just before I start, I will inform you that there will be no possibilities to ask questions in this forum, but you are very welcome to reach out to me or Ann-Sofie through mail after this session. Before I start to present the result more in detail, I will just give you a short brief introduction to Cibus for those who are not familiar with Cibus. Cibus focuses on grocery properties, and we now operate in seven countries: Finland, Sweden, Norway, Denmark, and the Benelux countries. We are the only listed real estate company in the Nordics focused exclusively on daily goods. Our aim is to generate stable cash flows that grow over time, and we pay our dividend monthly. Why focus on groceries?
Our daily good tenants operate in a non-cyclical sector, and food is essential for everyone, regardless of their budget or the state in the economy. Grocery stores also tend to remain at the same location for a longer time, reflecting the customer's shopping habits and their preference to returning to the same store and place. On the map here, almost every dot represents a grocery store, a place where people shop for food every day, regardless of their budget or the state of the economy. So, this is the foundation of our stable business. A few things to highlight during the quarter. It has been a very stable quarter in the underlying business, and the net operating income increased by 10% compared with Q3 2025. Profit from property management amounts to EUR 22.4 million, compared with EUR 21.8 million last year, and that is equivalent to EUR 0.27 per share.
It is stable business, and the occupancy rate remains unchanged from previous quarter at 96%. To continue growth through acquisitions in Finland. During the quarter, we signed agreement to acquire four properties in Finland at a total investment amount of EUR 12.5 million. We also see a slight increase in the earnings capacity. It increased to EUR 1.12 per share compared with EUR 1.08 in the beginning of the year. We also see continued strength in the capital markets. Interest rates remain volatile, and the risk for higher inflation remains. On the positive side, though, banks and capital markets remain stable and are willing to support Cibus. An example of this is the refinancing of the Swedish bond on SEK 700 million that we have done this quarter, and where we reduced the margin with 140 basis points. We have seen stable property values.
All countries recorded unchanged or positive changes in property values, except Finland, where values declined slightly. That decline was primarily due to higher yield requirements, that reflecting the higher market interest rates. But overall, the value of the portfolio has increased marginally by a half percent since the beginning of the year, and the portfolio yield remains at 6.4%. Now we have 690 properties with a property value of EUR 2.8 billion, not including the new assets. Net operating income in our current earnings capacity totals EUR 176.5 million, and as said, a portfolio yield of 6.4%. The Nordic grocery market is dominated by a small number, as you see here, of well-established chains, making most of our tenants very stable and professional. Our tenants mix remains unchanged, with Kesko as our largest tenant, followed by Tokmanni, but also 10 other well-known grocery chains.
Our view is that the tenants are well-functioning and are doing well. This page is important. It is focused on the strength of our cash flows, and there is a grocery store in 94% of our properties, and 82% of our rental incomes come from those daily good tenants. 98% of our leases are CPI linked, so follow the inflation more or less, and the average lease term is now six years. More than 90% of our leases are net or triple net leases. That means that less exposure to energy costs and other property costs. Another part that make the cash flow less sensitive is the average property size, which is 2,100 sq m, meaning that even if we have large tenants exposure, the exposure to its individual property or store is small.
Finally, we also could protect our cash flows with a hedging ratio of 94%, which makes the interest rates more predictable, at least in the short term. Just a reminder of the transactions during the year. At a total until this quarter, Cibus has acquired 24 properties and divested six properties. These acquisitions, it is important to say that they have really strengthened the quality of our portfolio and increased earnings per share. We have also sold some properties with vacancies and changed it to new properties with longer leases. It is important to be in the market always to be able to act when we can use transactions to increase cash flow or the quality of the portfolio. Then we also made a few transactions in the quarter, as been announced this morning.
That was four properties in Finland, the total investment of EUR 12.5 million, so it is not a big portfolio, but still a good one. The occupancy rate is 100% here. The total return is EUR 1.1 million, and the average lease term is 12.3 years. It is basically two different transactions. The one is an ongoing project that we buy, a K-Supermarket in Hämeenlinna, southern Finland, with a 15-year double net lease. Then there are also another transaction with three newly built properties in Pori, western Finland, with Kesko as a tenant. There we have a double net leases too, with a 8.1-year. On this page, we show the total return for Cibus compared with our peers as an average index. The green one is Cibus here, and the total return combines the share price performance together with the dividend.
Since we were listing 2018, Cibus has delivered a stronger total return than index. Among our peers, Cibus has been in the top 5 for total return every year and has been number one over the past five years. There is, of course, many ways to look at performance, but this is one of important key figure that I think it is important to highlight for Cibus. We are always in different discussions with our tenants, and these are just some examples. We had a Prisma hypermarket opened on October 2026, and it is the first Prisma store in Tuusula, Helsinki region, and Cibus' first hypermarket lease to S Group in Finland.
Also, we had another example where Cibus and Salling Group agreed to expand and develop a Netto store in Lystrup, and that investment includes both extension of the store and improved parking facilities alongside an extension of the lease agreement. Leasing remains a key focus going forward. Now over to you, Ann-Sofie.
Thank you, Stina. Looking at the P&L in the third quarter, net operating income rose by 10% to EUR 44.2 million. Administration costs were up by EUR 600,000 due to organizational development. Interest costs increased with EUR 2.7 million, affected by inclining rates and a larger debt portfolio, as well as costs related to refinanced bonds. Profit from property management rose to EUR 22.4 million. Property values fell by EUR 12.3 million from year-end, mainly reflecting slightly weaker valuations in Finland. At the same time, we recorded a larger gain on interest rate derivatives. Overall, profit increased to EUR 28.5 million compared with EUR 19.4 million in the comparable quarter. Earnings per share were EUR 0.35 compared with EUR 0.23 last year. This is the earnings capacity for the portfolio as of the October 1st.
Just a reminder that the earnings capacity is a snapshot, not a forecast of the full-year result. Some of you may see that we have changed the disposition of earnings capacity. The purpose is to make it more transparent and in line with the reporting period. The like-for-like you find directly in the earnings capacity rather than on a separate table. Net operating income has increased since January, mainly through acquisitions and in the like-for-like portfolio with rent indexation. Regarding the acquisitions, the ones press released today are not included in the earnings capacity. New loans in relation to acquisitions have increased total financing costs. The two bonds that we refinanced during the year decreased the margin by 190 basis points and 140 basis points. Adjusted earnings capacity was EUR 91.8 million, or EUR 1.12 per share.
That compares with EUR 1.08 at the start of the year. Our business spans seven countries. Finland remains our largest market and segment. It contributed EUR 21.5 million of net operating income in the quarter, almost half of the group total. Belgium and Denmark were the next largest contributors, followed by Sweden. Of the total property value, Finland represented 47%. On the balance sheet date, the properties had a value of EUR 2.8 billion. Net loan-to-value was 59%. This compares net debt with the value of the properties. Secured bank debt represented just under half of property value. We also use unsecured bonds and hybrid capital. The hybrid capital is classified as equity in the balance sheet and is not included in the LTV. EPRA Net Reinstatement Value was about EUR 1.1 billion, or EUR 12.89 per share.
This is a property sector measure of net asset value with the exclusion of deferred tax. As Stina mentioned before, the average remaining lease term was six years when we exclude the Belgium break options. When we include those options, it was 4.4 years. The lease terms, together with a net operating income margin of 95% and an occupancy rate of 96%, provide a stable base for earnings. Indexation of 89% of rental income further support this stability. Bank loans remain our main source of debt funding alongside unsecured bonds. On balance sheet date, the company had total interest-bearing debt of about EUR 1.7 billion. The average interest rate was 4%, and average capital maturity was 2.1 years. 16% of debt mature within the next 12 months, of which EUR 28 million were bonds redeemed on the October 2nd.
Most of the bank loans maturing in the coming 12 months are under negotiation. We manage interest rate risk through fixed-rate loans, swaps, and interest rate caps. The chart shows that only a small share of debt is exposed to variable rates. All else equal, the negative effect on the profit would be EUR 1.2 million if the market rates would increase by 1 percentage point. A 1 percentage point fall would affect the profit positive by EUR 3.5 million. The effect is different because caps limit the cost of rising rates, while allowing us to benefit when rates fall. As mentioned, the LTV was 59% at the end of September. We intend to maintain the level we have had historically. We have a good margin to covenants. We follow the risk limitation in line with other key ratios, such as net debt-to-EBITDA.
In addition, we have secure cash flows that support the LTV level. Reported net debt-to-EBITDA was 10.5x, or 10.1x forward-looking. Debt can rise immediately when we buy properties, while the income builds up over time. That is why we look at both the reported and forward-looking measures. ESG initiatives are integral to our day-to-day operations. Since 2022, Cibus has had a science-based target to reduce Scope 1 and Scope 2 emissions with 42% by 2030. We achieved this target ahead of schedule by switching to fossil-free alternatives for both electricity and district heating. We are committed to achieving net zero across all scopes by 2045. Energy efficiency initiatives include indoor climate upgrades, energy recovery, and solar panel installations. Grocery stores are an important part of local communities. They are accessible meeting places, often close to homes and public transport.
They are large employers and are often the entry to the labor market. Cibus had EUR 335 million in green bonds outstanding on the balance sheet dates. Over to you, Stina.
Yes, thank you. Just a few words about the future and what we will focus on going forward. It is important to us to just continue to establish the offices in our markets, and now it is only Norway left. As I said before, local presence and close to our tenants and their markets is very important to continue generating business. Both the two transactions completing after the quarter is a clear example of this. We will, as I also said, continue to focus on letting and develop our properties, and at the same time evaluate the market for new transactions. We will have the same focus on refinancing and hedging activities as before. That makes the cash flow more predictable. We will still continue to grow when market is favorable and when we can grow profitable.
In a challenging market environment, we will continue to focus on what we can control, and that is develop our portfolio in close cooperation with our grocery tenants to secure cash flow, and we will remain focused on increasing profit from property management per share over time. Thank you for that, and just again want to say, if you have any questions, you are very welcome to reach out to me or Ann-Sofie through email. Thank you very much, and have a good day.
Thank you.