Welcome to the presentation of Intea’s Q3 report. My name is Charlotta Wallman Hörlin, and I’m the CEO of Intea. Sitting next to me here is CFO Magnus Ekström.
Good morning, everybody.
Together, we will present the Q3 report. To begin with, we can conclude that we are leaving a strong and stable third quarter behind. The business is developing in a positive way, and our business model, which focuses on long-term public tenants, provides us with a robust platform to build on. Intea's project development is buzzing with activity. New constructions in various phases are ongoing across the country, from Ånge in the north to Kristianstad in the south. We currently have ongoing projects of more than SEK 12 billion. This summer, we acquired a portfolio of security properties from Specialfastigheter. The acquisition was completed on first October. I will come back to that shortly. As usual, there is high activity within our local asset management organization.
During this quarter, a new agreement was signed with the Swedish Police Authority in Linköping, which includes both an extension of the existing agreement and a project to create new premises. I will come back to this too. As we grow with new projects and properties, we have also strengthened the organization during the summer and autumn, both within asset management and project development. Yesterday, we signed a new 14-year green loan with the Nordic Investment Bank. The loan will be used to finance the new Justice Center in Kristianstad. Credit and capital markets remain relatively strong, and we see that credit margins are declining. Now, Magnus will walk you through the financials.
Yes, thank you, Charlotta. And this period, the first three quarters, is mainly driven by project completions in 2024 and 2025, and also acquisitions that we did in Q4 last year, and also indexation. And if we summarize the first three quarters, we have a contracted rent of SEK 1.5 billion. We also have a property value of SEK 25.7 billion, with a running yield of 5.5%. The rental value has increased and is now up to SEK 1.1 billion. And this gives us also a high cash flow from our operations, as you can see, with a surplus ratio of just under 85%. Our ICR for the last 12 months increased to 3.4 x, and the LTV amounted to 46.3%. And if you look into the Q3 figures, it's pretty much the same as the first three quarters, and even better, I must say.
We have a rental income increase in 30%, and like for like, 2.4%. The increase in profit from property management is 85.8%, and this is also mainly driven to NOI from completed projects, as I said in the beginning, and also the additional rental income from acquisitions in Q4 2024. We had a positive impact from changes in value from investment properties of SEK 168 million. Positive impact from changes in value from interest rate swaps of SEK 124 million, mainly due to change in long-term market interest rates, and we also took a write-down of SEK 70 million of our hydropower plants, and this gives us a profit after tax of SEK 410 million for Q3.
The acquisition from Specialfastigheter was completed on first October, so it is not yet included in the figures for Q3. Through this acquisition, we add seven additional prison facilities in security class 2 and 3, located in the Mälardalen and Malmö regions. Intea already owns and develops five prison facilities. With this acquisition, we see opportunities to further support the Swedish Prison and Probation Service in developing its operations. The acquisition also included four SiS institutions, and we look forward to working with the National Board of Institutional Care as a new tenant. The underlying property value in the transaction amounted to nearly SEK 1.4 billion. The lettable area totals just over 78,000 square meters, and the annual rental value is just over SEK 190 million. Here you can see examples of ongoing projects. The custody unit project in Västerås is in full production.
The investment is estimated at just under SEK 2.8 billion, of which approximately SEK 2 billion remains to be invested. The rental value amounts to approximately SEK 225 million. In September, an agreement was signed with the Swedish Police Authority to expand the premises at Garnisonen in Linköping for the Police Authority's National Forensic Center, NFC, by just over 5,000 square meters. The new premises consist of laboratory spaces, among other things. At the same time, the existing lease agreement of 15,000 square meters was extended by 15 years from completion of the project in Q1 2028. By adding new modern premises, the area becomes more compact and more workplaces are created. This increases the attractiveness of the area. Once the new premises are completed, the Police Authority's total lease at the Garnisonen area will amount to approximately 50,000 square meters lettable area.
With a zoning plan for the Garnisonen area, which added 66,000 square meters of building rights, we can meet both existing and new tenants' needs of premises for a long time to come. Lastly, the Viskan Prison, which was taken into use by the Swedish Prison and Probation Service earlier this year, is being expanded by 120 places. The investment is estimated at just over SEK 240 million with a rental value of SEK 28 million.
If we go to the project portfolio, we now have a total current investment volume of SEK 12.6 billion, and we estimate an additional rental income from our ongoing projects of approximately 58%. We have a high average lease period in those 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 96.7%, an increase from 95.7% at year-end. The average lease term with public sector tenants has increased to 8.5 years from 7.8 years at year-end.
Our earning capacity, before I go through it, I must say that the acquisition from Specialfastigheter is not included in these figures, and if we look at the earning capacity, it has increased both in rental income as well as for income from property management. It was up 4.1% since last quarter, and this is also mainly driven by acquisitions and completed projects, but also working with our NOI. The property value has increased with almost SEK 2 billion during the first three quarters. The current yield is 5.5% and is based on our NOI in the earning capacity. The increase in yield in Q2 is mainly due to completion of projects in the justice segment with a higher initial yield than the average yield that we have in the portfolio. We have a good cash flow from our operations that we could use for coming investments.
And on our last 12 months' basis, we have a cash flow from operating activities of approximately SEK 730 million and a total investment of approximately SEK 2.5 billion. Our financial position is strong. We have an LTV of 46.3%. Our ICR is 3.4 x for the last 12 months. And for the quarter, the ICR was 3.9 x. And if we look at the adjusted Net debt/ EBITDA, where we exclude debt from projects, it has decreased to 8.1 in Q3. The EPRA NRV per Class A and B share increased to 50.84 SEK per share. And the profit from property management per Class A and B share increased to 3.52 SEK per share for the last 12 months. So we have a strong track record for growth, both for EPRA NRV and from profit from property management. And it has increased for the last 12 months.
And if we look at the growth in EPRA NRV and profit from property management since 2018, the average growth was around 16% for NRV and 20% for the profit from property management. We have a debt portfolio of SEK 12.2 billion, a mix of bank loans, bonds and commercial paper. Our interest rate has decreased a bit during Q3 and was 2.91% at the end of the period. And we now have a total of SEK 13.8 billion in swaps and a hedging rate of 130% at the end of the period. During the year, we have been active in the interest market and did interest swaps mainly in the first half year. We did interest swaps of SEK 3.5 billion and also extended existing swaps. Our duration is 4.7 years at the end of the period, and our duration in capital binding was 2.4 years.
And we're currently working to prolong the duration for capital binding. Finally, we have good access to capital with unutilized credit facilities of just over SEK 5 billion. And finally, we have not been active in the bond market during Q3. However, we intend to issue a bond probably in Q4. The spreads have come down, and currently, I believe we could issue a five-year bond around 115 bps. So for the moment, the capital market is good, I think. And with that said, I hand over to you, Charlotta.
Thank you, Magnus. We are seeing more and more signs that the transaction market is gradually opening up. We both hope and believe that we have good opportunities to find interesting deals in the coming months. So now it is full focus on both acquisitions and projects, and we look forward to an exciting end to the year. Thank you very much for listening today.