Welcome to the presentation of Intea’s Year-End Report for 2025. My name is Charlotta Wallman Hörlin, and I’m the CEO of the company. Next to me is our CFO, Magnus Ekström.
Good morning, everybody.
Before we dive into the numbers, I would like to start with a brief look back. This spring marks 10 years since Intea completed its first acquisitions. From the very beginning, Intea had a clear focus: specialized properties with public sector tenants. Over the years, our expertise in this area has both developed and been refined, and today Intea is an established player in social infrastructure with a significant project development business. We have grown to become the largest private owner of facilities for higher education and prison facilities.
Through specialization and continuous knowledge transfer within and between our project development operations and local property management organizations, the companies' offering is constantly evolving. Local property management, with our own employees, has been, and will continue to be, a central part of Intea's strategy to be close to our tenants to ensure professional management, well-functioning facilities, and a high level of service.
Now, turning to 2025, our first year as a listed company. It has been a very eventful year, to say the least. As we now summarize the results, we can conclude that we are closing the books on a strong year. The profit from property management increased by 69%, and the growth per A and B share amounted to 35%. We've added nearly SEK 11 billion in new project volume and completed acquisitions amounting to SEK 2.4 billion. In Gävle, Intea will construct the new justice center, including custody unit and police facilities. Once completed, it will be Intea's third justice center, in addition to those we already own in Kristianstad and Helsingborg. We will construct prison facilities in Kristianstad and Värnamo, and in Viskan we are expanding the existing facility on behalf of the Swedish Prison and Probation Service.
We will also build police facilities in Linköping, both premises for the National Forensic Centre on an existing property and new facilities in a new location near the airport. In 2025, we completed the acquisition of the prison facility in Kristianstad and the custody unit project in Västerås. We acquired a portfolio of security properties from Specialfastigheter. We also acquired the new Ångermanland District Court in Härnösand and police facilities in Växjö. In January, we acquired a project in Uppsala where we will renovate and construct new premises for a government authority. During 2025, we completed projects with a total investment volume of SEK 2.1 billion. The Viskan facility was completed almost exactly a year ago. In the second quarter, we completed both a major project within the justice category and the new Eye and Ear Clinic in Linköping.
In the third quarter, we finalized the first phase of a rail infrastructure project, and in the fourth quarter, we completed an expansion of the Ringsjön Prison. In 2025, we raised capital through two directed share issues of Class B and Class D shares, totaling SEK 1.6 billion. As we continue to grow, we have also strengthened the organization and welcomed several new colleagues to Intea. Now I will hand over to Magnus, who will tell you more about the numbers.
Thank you, Lotta. If we go to the numbers, I will summarize 2025. We now have a contracted rent of SEK 1.8 billion. We have a property value of SEK 28 billion with a running yield of 5.9%. The rental income for 2025 increased and amounted to almost SEK 1.6 billion, and with a surplus ratio of 83.8%. Our ICR for the last 12 months increased to 3.7 times, and the LTV amounted to 46.5%. And as Lotta said in the beginning, the profit from property management was strong and increased with 69% for 2025 and came up to SEK 904 million. And with that, the board proposed a dividend of SEK 1 per Class A and B share and SEK 2 per Class D share. If we look at the Q4, it was a good performance. The increase in rental income of 43%, like for like, 4.5%.
Increase in NOI, 42.3%, and increase in profit from property management of 64.8%. This is mainly driven by NOI from completed projects and acquisition and also lower interest expenses in relation to net debt. We had a positive impact from changes in value from investment properties of SEK 393 million. We also had a positive impact from changes in value from interest rate swaps of SEK 64 million. This is mainly due to changes in long-term market interest rates. We also took a write-down of SEK 17 million on our hydropower plants. This gives us a profit after tax of SEK 546 million for Q4.
The acquisition from Specialfastigheter was completed on 1st of October. Through this acquisition, we added an additional seven prison facilities in security classes two and three, located in Mälardalen and the Malmö area. The underlying property value amounted to SEK 1.4 billion. We have acquired the new Ångermanland District Court in Härnösand, which is currently being completed. Closing is expected to take place this summer when the Swedish National Courts Administration takes possession of the premises. The underlying property value in the transaction amounted to just over SEK 220 million. We have also acquired police facilities in Växjö. The underlying property value in the transaction amounted to approximately SEK 110 million. The premises are used by the police for, among other things, evidence handling and forensic operations.
The property also includes a building right of approximately 6,000 sq m, where the Swedish Police Authority holds an option to expand the leased premises through new construction. There is a high level of activity in Intea's project development operations. New construction projects in various phases are underway across the country. We currently have ongoing projects totaling more than SEK 12.6 billion. Here you can see examples of three of our ongoing projects. The first is the expansion of the prison facility in Kristianstad, where we are extending the facility into phases. The first phase, which is in full production, comprises 200 new places. In the second phase, which is still at an early stage, an additional 400 places are planned. The second project is the construction of new premises for the police authority's National Forensic Centre on our existing property at Garnisonen in Linköping.
At the same time as we agreed with the police authority to build 5,000 square meters of new premises, the existing lease agreement was extended by 15 years from the project's completion. The final example is the custody unit project in Västerås, which is in full production and scheduled for completion during the autumn 2028.
Here we have the summary of the project portfolio. As Lotta said, the current investment volume is now SEK 12.6 billion. We estimate an additional rental income from our ongoing projects of approximately 50%. We have a high average lease period and an estimated additional NOI of SEK 870 million. The rental value will be around SEK 2.7 billion when completion of all projects, and that's an increase with around SEK 900 million.
Both the share of rental income from public sector tenants and the average lease term for public sector tenants increased during 2025. The share of rental income from public sector tenants increased from 95.7%-97%, and the average lease term for public sector tenants increased from 7.8-8.1 years.
If we look at the full year 2025, we had a 30% increase in rental income, almost 69% increase in profit from property management. We also had a positive impact from changes in value from investment properties of SEK 850 million, of which almost SEK 600 million was attributable to project properties. We had a negative impact from changes in value from interest swaps of SEK 39 million, and our hydropower plants have been written down with SEK 51 million during the year. All in all, this gives us a profit after tax of just over SEK 1.3 billion for 2025. The property value has increased with just over SEK 4.4 billion during 2025.
The current yield is 5.9% and is based on our NOI in the earning capacity. The increase in yield is mainly due to completion of a project in Q2 and the portfolio of security properties we acquired in Q4.
Both of them had higher initial yield than the average yield we had in the portfolio. We have an increase in cash flow from our operations. On a last 12-month basis, we have a cash flow from operating activities of approximately SEK 860 million and total investments of approximately SEK 3.5 billion. Our financial position is strong, LTV of 46.5%. Our ICR is 3.7 times for the last 12 months, and for the quarter, the ICR was 3.8 times. If we look at the adjusted net debt EBITDA, where we exclude debt from projects, it has decreased to 8.0 in Q4. The EPRA NRV per Class A and B share increased to 53.84 SEK per share, and the profit from property management per Class A and B share increased to 3.74 SEK per share for the last 12 months.
We have a strong track record for growth, both for EPRA NRV and from profit from property management. If we look at the growth in EPRA NRV and profit from property management since 2018, the average growth was around 17% for the growth in NRV and 19% for the profit from property management. We have a debt portfolio of SEK 30.5 billion. Our interest rate has decreased a bit during Q4 and was 2.87% at the end of the period. We've been active in the interest market mainly during the first half year of 2025 and did a lot of new interest swaps and also extended existing swaps. Our duration is 4.0 years at the end of the period, and we have a hedging rate of 105%.
Our duration in capital binding has increased during Q4 and was 3.2 years at the end of the period, mainly driven by the 14-year loan agreement with the Nordic Investment Bank that we signed at the beginning of Q4. Finally, we have good access to capital capital with unutilized credit facilities of just over SEK 5 billion. If we look at the credit margins, we haven't been active in the bond market during Q4. However, we issued a three-year green bond in January with a margin of 85 bps. And as you can see in the graph, the spreads have come down, and currently, I believe we could issue a four-year bond just under 100 bps. So for the moment, the capital market is good.
Finally, if we look at the earning capacity, the profit from property management has increased with 56%, and per Class A and B share, it has increased with 50%. It's currently up to SEK 4.44 per share. With that, I hand over to you, Lotta.
Thank you, Magnus. During 2025, we saw increasing activity in the market, and we believe this trend may continue throughout the year. The credit and capital markets remain strong with good access to capital and declining credit margins. This provides favorable conditions for continued growth, both through projects and acquisitions. I began by briefly summarizing the company's first 10 years. It has been an incredibly exciting and eventful decade. Now we look forward to the future just as exciting. Thank you.