Welcome to the presentation of Intea's Q2 report. 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.
To begin with, we can conclude that we are leaving a strong quarter behind us. Intea continues to develop according to plan. Rental income increased by just over 27% compared with the previous year, and growth in income from property management per Class A and Class B share amounted to just over 27% for the first half of the year. During the second quarter, we completed an acquisition of SEK 440 million and invested approximately SEK 500 m illion in our ongoing projects while continuing to develop our existing properties. The development of our existing properties is an important part of our business, and during the quarter, we were able to announce that the investment in the ongoing development of the Viskan Prison has more than doubled in size, and that we will nearly double the capacity at the Ringsjön Prison.
The conversion of premises from educational use to police facilities at the garrison area in Linköping was completed during the quarter, in early April, the Swedish Police Authority moved into newly renovated and purpose-built premises. We have also leased previously vacant premises to the Swedish Prison and Probation Service in Skövde and to the National Government Service Centre in Östersund. In Värnamo, we have signed a lease agreement with the Swedish Police Authority for the construction of a new police station. I will get back to both the acquisition and some of our development projects in more details shortly. First, I will hand over to Magnus, who will walk you through the financials.
Thank you, Lotta. We go through the numbers and just summarize the first slide. We now have a contracted rent of SEK 1.8 billion. We have a property value of just under SEK 30 billion, with a running yield of 5.8%. The rental income for the first half year increased with a good cash flow, as you can see in the surplus ratio of just under 83%. Our ICR for Q2 increased to 4.2x , and the LTV amounted to 47.6%. The growth for NRV per Class A and B share amounted to 16% for the quarter, and the growth from property management amounted to almost 30%. If we go to Q2, we had a good performance in Q2 with an increase in rental income of 28%, like-for-like 1.2%, increase in NOI of 25%, like-for-like + 0.3%, and increase in profit from property management of 34%.
This increase is mainly driven by NOI from completed projects and acquisitions. We had a positive impact from changes in value from investment properties of SEK 155 million and a negative impact from changes in value from our interest rate swaps of SEK 184 million. This is mainly due to changes in long-term market interest rates. Tax is mainly deferred tax, and this gives us a profit after tax of SEK 207 million for Q2.
The first picture on this slide shows the Skärholmen Police Station. In May, we completed the acquisition of the property, which comprises approximately 6,400 sq m of lettable area. The underlying property value in the transaction amounted to just over SEK 440 million, and the annual rental value amounts to approximately SEK 26 million. The second and third pictures show existing properties currently under development. The picture in the middle shows the Viskan Prison, while the picture on the right shows the Ringsjön Prison. As I mentioned at the outset, the development of existing properties is an important part of our business. During the quarter, it was confirmed that we will invest an additional SEK 260 million in the expansion of the Viskan Prison. The facility, which currently has 144 places, became operational in January last year.
Shortly thereafter, an agreement was reached with the Swedish Prison and Probation Service to expand the facility by 120 places at an estimated cost of SEK 250 million. Since then, the design and planning process has continued, the project has grown in scope, resulting in the investment more than doubling to SEK 515 million, with an annual rental value of SEK 56 million. We have signed an agreement with the Swedish Prison and Probation Service to nearly double the capacity of the Ringsjön Prison, increasing the number of places from 105 to 185, and to invest approximately SEK 80 million in the project. The annual rental value is estimated at SEK 16 million. Intea acquired the facility in 2022 and has since expanded it in several stages.
At our prison facility in Tygelsjö, outside Malmö, and in Asptuna, south of Stockholm, the Swedish Prison and Probation Service has announced that it has initiated feasibility studies regarding further capacity expansion. As usual, there is a high level of activity in our project development. We currently have projects under development of nearly SEK 13 billion, of which SEK 10.5 billion remains to be invested. The project portfolio provides a stable and predictable growth of the business. During the quarter, we invested approximately SEK 500 million in our ongoing projects. This slide shows examples of three of our ongoing projects. The first is the new police station in Värnamo. In June, a lease agreement was signed for the project, meaning that it has moved up one step in our project table in the Q2 report and is now listed under projects with signed lease agreements.
The new police station will comprise more than 8,600 sq m. Intea was awarded the project in December 2023. Since then, planning and zoning work has been ongoing, and the project is now entering its next phase with procurement of contractor, after which construction can start. The annual rental value, which is based on the final project costs, is estimated at SEK 25.3 million, while the total investment is expected to amount to approximately SEK 400 million. In the project table in the Q2 report, under the same category, projects with signed lease agreements, the new project to expand the Ringsjön Prison, as well as a project within higher education, are now included. In the lower section of the project table in the Q2 report, which presents projects for which lease agreements have not yet been signed, the police building project in Linköping has been removed.
The Swedish Police Authority has informed us that its requirements have changed since the procurement process was completed, and that it therefore will not proceed with signing the lease agreement. The second project shown on this slide is an expansion of the National Forensic Centre, NFC, at the garrison area in Linköping. The extension will add more than 5,000 sq m, including laboratory facilities. In September last year, we entered into an agreement with the Swedish Police Authority to expand its operational premises. At the same time, the existing lease agreement covering 15,000 sq m was extended by 15 years from the completion of the project, which is scheduled for the fourth quarter of 2028. The final picture shows the Custody Unit Project in Västerås. During the quarter, we have invested approximately SEK 100 million in the project.
Construction has been underway for just over a year, and the structural framework has now been completed. Interior work, including installation routes and partition walls, is progressing at full pace.
We have a large project portfolio with a total current investment volume of just under SEK 13 billion, of which SEK 2.5 billion is already invested. As Lotta just mentioned, SEK 10.5 billion remains to be invested for the next five years. We estimate an additional rental income from our ongoing projects of approximately 51%. We have a high average lease period in the portfolio and an estimated additional NOI of just under SEK 900 million. When completion of all projects, the rental value will be just under SEK 2.8 billion.
Our goal is that more than 90% of the rental income should be derived from public sector tenants. At the end of the quarter, this share amounted to 97%. The remaining contract length for public sector tenants amounts to 7.8 years. The lease expiry profile is set out in the middle graph. At the end of the quarter, annuity-based additional rents amounted to SEK 236 million. For the 51% of the supplements that expire after 2031, the major part is attributable to three lease agreements which mature between the years 2037 and 2049.
The property value has increased with just over SEK 1 billion during Q2, and the current value is just under SEK 30 billion. The current yield is 5.8% and is based on our NOI and the earning capacity. We have a good cash flow from our operations. On the last 12-month basis, we have a cash flow from operating activities of approximately SEK 1 billion and a total investment volume of approximately SEK 3.5 billion. We have a strong financial position with an LTV of 47.6%. Our ICR is 3.9x for the last 12 months, and for the quarter, the ICR was 4.2 x. If you look at the adjusted net debt EBITDA, where we exclude debt from projects, it amounted to 7.7 x in Q2. We are in a good position for growth. The EPRA NRV per Class A and B share increased to SEK 56.14 per share.
The profit from property management per Class A and B share increased to SEK 1.12 per share in the quarter, and amounted to SEK 4.20 per share for the last 12 months. If we look at the growth in EPRA NRV and the profit from property management since 2018, the average growth was just over 16% for the NRV and 21% for the profit from property management. We have a debt portfolio of SEK 14.4 billion. Our average interest rate amounted to 85% at the end of the period, and we have a high interest rate hedging ratio of just over 100%, and our duration was 3.9 years at the end of the period. Our duration in debt maturity amounted to 3.3 years at the end of the period.
During the quarter, we have refinanced a loan facility of SEK 825 million and increased the loan to almost SEK 1 billion with a term of five years on good market conditions. We were also active in the bond market in late June with an issue of new green bonds totaling just over SEK 1.6 billion with good terms. At the same time, we carried out a buyback of SEK 1.1 billion, and as a result of that, a large share of debt matured within one year has been refinanced. Finally, we have a good access to capital with unutilized credit facilities of just over SEK 5 billion. If we look at the bond market, the spread curve development has come down since the beginning of the year.
As I said on the previous page, we could issue two green bonds totaling SEK 1.6 billion, with maturities of two and five years respectively, and spreads of 60 basis points, respectively 109 basis points. The capital market is very good at the moment. Finally, if we look at the earning capacity, the profit from property management has increased with 20% per Class A and B share quarter by quarter, and currently up to SEK 4.42 per share. With that, I hand over to you, Lotta.
Thank you, Magnus. Our project portfolio of nearly SEK 13 billion, of which SEK 10.5 billion remains to be invested, provides a stable and predictable growth for many years to come. In addition, demand for new and modernized premises remains strong among several of our tenants, creating further opportunities for growth. We are also seeing increased activity in the transaction market. Our financial position is strong, and we are well-positioned to continue growing. We look forward with confidence to the second half of the year with new transactions and projects, as well as continued development of our existing portfolio. Finally, we would like to wish everyone a wonderful summer. Thank you for listening.