Welcome to the presentation of Intea 's interim report for Q2 2025. My name is Charlotta Wallman Hörlin, and I'm the CEO of Intea . Joining me today is our CFO, Magnus Ekström.
Good morning.
Together, we will present the Q2 report. While the world around us continues to be marked by uncertainty and rapid change, many interesting things are happening within our business. We are reporting a strong second quarter. It is clear that our stable business model, with a focus on long-term public sector tenants, provides us with a solid foundation even in challenging times. The activity within, in particular, the judicial sector remains high, and we see many business opportunities in this area. In May, we carried out the directed share issue that brought in just over SEK 1 billion in new capital to the company. Yesterday, we announced the acquisition of a portfolio of security properties from Specialfastigheter. Through this acquisition, we are expanding our asset portfolio and complementing our project portfolio in a positive way.
The acquisition includes seven prisons in security class II and III, as well as four CIS institutions. The total lettable area amounts to just over 78,000 square meters, with the Swedish Prison and Probation Service and the National Board of Institutional Care as tenants. The annual rental value amounts to just over SEK 190 million, and the underlying property value in the transaction amounts to SEK 1,390,000,000. Intea currently owns and develops five prisons, and following the acquisition from Specialfastigheter, the number will increase to 12. Development projects are a central part of our business, and we are pleased to report that during the quarter, we added nearly SEK 6.5 billion in new projects, with an annual rental value of approximately SEK 480 million.
The projects are located in Gävle and Linköping for the Swedish Police Authority, and in Västerås and Kristianstad for the Swedish Prison and Probation Service. Since the beginning of the year, we have added approximately SEK 11.3 billion in project volume, with an annual rental value of just over SEK 820 million. The new projects will be completed at various times during the years 2026- 2031. There is also high activity within our local asset management teams. During the quarter, we signed a new lease agreement with the Swedish Prison and Probation Service for an expansion of the Ringsjön prison by just over 1,500 square meters of lettable area. The Ringsjön prison is one of Sweden's largest prisons for women in security class III, and with this new lease, the number of places will increase to just over 100 by year-end.
As we continue to grow with new projects and properties, we have also strengthened our organization, both within asset management and project development. Now, Magnus will talk you through some figures.
Thank you, Lotta. I will go through the numbers. The first slide is for the first half year, and we have a contracted rent of SEK 1.5 billion, and we also have a property value of SEK 25.3 billion, with a running yield of 5.5%. We continue to have a high cash flow from our operations, with a surplus ratio of 83.8%, and our ICR for the last 12 months increased to 2.9 times, and the LTV amounted to 46.8%. If we go to the Q2 figures, we had a strong performance in Q2 with an increase of rental income of 24%. Like for like, it was 2.1%, and an increase of profit from property management of 67%, and this is mainly due to MOI from completed projects during 2024.
The completion of the prison facility in Visken in January of this year and the optometric clinic in Linköping in Q2. We also had additional rental income from our acquisitions we did in Q4 last year. We had a positive impact from changes in value from investment properties of SEK 143 million, and a negative impact from changes in value from our interest rate swaps of SEK 286 million, and this is mainly due to changes in long-term market interest rates. We also took a write-down of SEK 70 million of our hydropower plants. Finally, if we look at the graph, we still have a high surplus ratio, which gives us a good cash flow from our operations.
In April, the custody unit project in Västerås was taken over, and construction is now in full progress. The total investment is estimated at just under SEK 2.8 billion, of which approximately SEK 2 billion remains to be invested. The annual rental value amounts to approximately SEK 225 million. In May, it was confirmed that the Kristianstad prison will be expanded by an additional 400 places in a second phase. The first phase includes just under 200 new places. The prison will, following the expansion, be one of the largest prisons in security class II in Sweden, with a total capacity of around 700 places. The total investment for both phases is estimated at SEK 2.4 billion, with an annual rental value of SEK 170 million. During the quarter, the Swedish Police Authority awarded Intea projects in both Gävle and Linköping.
In Gävle, the new police facility will form a justice center together with the new custody unit that Intea Fastigheter AB will be building for the Swedish Prison and Probation Service. In Linköping, the new police building will be constructed in close proximity to Linköping Airport. In May, the new optometric clinic at the Garnisonen area in Linköping was completed, and the tenant, Region Östergötland, moved into modern premises with surgery rooms, consultation and patient areas, administrative spaces, and advanced medical technology installations. The project, which started in 2019, is a good example of how we work to develop our existing properties. The building is part of a strategic densification of the area and has been designed in close collaboration with Region Östergötland to ensure that the facilities support efficient and safe healthcare operations.
The Garnisonen area is located near the University Hospital in Linköping, and this is the first time Region Östergötland has chosen an external landlord for such an advanced healthcare facility. The building comprises approximately 6,900 square meters of lettable area with an annual rent of approximately SEK 20 million. The total project cost amounted to SEK 260 million, and the lease term is 15 years. Region Östergötland already leases approximately 9,400 square meters in the Garnisonen area. In May, a new zoning plan for the Garnisonen area gained legal force. It enables the development of an additional 66,400 square meters of building rights, allowing us to meet the needs of both existing and future tenants in the area for many years to come. During the quarter, we also completed a project within the judicial sector.
The project comprises over 7,000 square meters of lettable area with an annual rental value of just over SEK 100 million. The investment totaled approximately SEK 400 million. Here are some examples of ongoing projects. In Gothenburg, the development of state-of-the-art educational and training facilities for the Swedish Police Authority is progressing. The project is expected to be completed during the first half of 2027. At the Visken prison, which was completed earlier this year, a project to expand the prison with 120 additional places is currently ongoing.
If we look at our project portfolio, as Lotta mentioned, it has increased a lot during this year, and now we have a total current investment volume of SEK 12.8 billion. We estimate an additional rental income from our ongoing projects of approximately 59%. We have a high average release period in our projects and an estimated additional NOI of SEK 870 million. The rental value will be around SEK 2.5 billion when completion of all projects, and that's an increase with just over SEK 900 million.
Intea has a goal that more than 90% of the rental income should come from public sector tenants. At the end of the quarter, the share amounted to 96.5%, an increase from 95.7% at year-end. The average lease term with public sector tenants has increased to 8.1 years from 7.8 years at year-end.
If we look at the earning capacity, it has increased since Q1 this year with an increase of rental income of 9.4%. We also had an increase of profit from property management of 17.2%, and this is mainly due to consistency and completion of projects, but also working with our MOI and indexation. If we look at the property value, it has increased with almost SEK 1.7 billion during the first half year. The current yield is 5.5%, and it's based on our NOI in the earning capacity. The increase in yield is mainly due to completion of a project in Q2 in the justice segment, with a higher initial yield than the average yield we had in the portfolio.
We have a good cash flow from our operations that could be used for our investments, and on the last 12 months' basis, we have a cash flow from operating activities of approximately SEK 625 million and total investments of approximately SEK 2.5 billion. We have a strong financial position with an NLTV of 46.8%. It should be between 50%- 55% and not exceed 60%. Our ICR is 2.9 times for the last 12 months, and for the quarter, the ICR was 3.5 times. If we look at the adjusted net debt EBITDA, where we exclude debt from projects, it has decreased to 9.0 in Q2. The EPRA and our NRV per class A and B share increased to SEK 49.19 per share, and the profit from property management per class A and B share increased to SEK 3.23 per share for the last 12 months.
We have a strong track record for growth, both for EPRA and NRV and from profit from property management, and it is increasing for the last 12 months. We've been active in the interest market during the first half year and did interest swaps of SEK 3.5 billion with an average interest rate of 2.40%. We also extended the existing swaps of SEK 1 billion, and after that, our fixed rate period increased to 4.9 years. We have a total of SEK 13.8 billion in swaps and a hedging rate of 113% at the end of the period. We have a debt portfolio of SEK 12.2 billion with a good mix between bank loan bonds and commercial papers, and our interest rate has increased a bit during Q2 and was 2.95% at the end of the period, and this is mainly due to the high share of interest hedging.
We have been active in the bond markets during Q2 and issued two new green bonds in total of SEK 950 million. The first bond was a five-year green bond with a margin of 133 basis points and one two-year bond with a margin of 79 basis points. I hand over to you, Lotta.
Thank you. It is clear that our stable business model with a focus on long-term public sector tenants provides us with a solid foundation even in challenging times. With new capital backing us, we are well positioned to continue pursuing new business opportunities in an attractive market while maintaining a flexible and well-balanced capital structure. With that said, Magnus and I wish you all a wonderful summer. Thank you.
Thank you.