Welcome to the Platzer Fastigheter webcast for teleconference Q2 2022. For the first part of the call, all participants will be in listen only mode, and afterwards there'll be a question-and-answer session. Today I am pleased to present CEO Per-Gunnar Persson and CFO Fredrik Sjödin . Please begin your meeting.
Thank you, and we're happy to present the interim report for January to June 2022. I'm Per-Gunnar Persson.
I'm Fredrik Sjödin.
We will start with a summary. This report is a very strong report. It's a very strong first half year performance. Of course, it provides the solid ground for the uncertain times that we are looking ahead. The main issue or question or the main topic for the Q2 report was of course our zoning plan for Södra Änggården that gained legal force, and now we can finally put it in the books, which we are very pleased. We have had this issue open for five years' time I think, Fredrik. It's very nice to have it in the books now. We've also started the construction work for Schenker Logistics in Sörred Logistikpark, which is called in Swedish.
We completed the sale of part of Arendal to the Port of Gothenburg, and it's a very important way for the Stena Line to put the ferry traffic in, out in Arendal in the future. It's good for not only the city of Gothenburg, the central parts of Gothenburg, but also for Arendal that we can start doing more of a urban development with the Stena Line as well in the pipeline. Of course, we were pleased with that our net lettings remain at a record level even in the second quarter. That will be good for the future with a lot of new contracts signed.
After period, which we will be coming into a bit later in report, we also completed 3 sales of property, and was one in Gamlestadens Fabriker to JM. All those are residential building rights, and the other two is in Södra Änggården to Hökerum and Bonava. If you look at the numbers, we had a rental income increase to SEK 613 million from SEK 589 million, and also increase in property management to SEK 374 million. The profit for period was very high of course because of the value changes due to the Södra Änggården in the books. And the property value now amounted up to almost SEK 27 billion. We will come into that also later in the report.
If we look a little bit in Gothenburg, we can see that there's still a good economic activity in Gothenburg. We have an employment that is decreasing. The numbers in May were down 5 - 5.7 from 6.1 in February. We still have high job openings and low redundancy levels. We can see a good activity in the Port of Gothenburg, where freight volumes in especially railroad has been increasing a lot and was all-time high. We also see a greater uncertainty going forward and maybe driven by global factors like component shortage. We can see that our construction prices in our new projects where we start today is up around 20%-25%.
I mean, the war in Ukraine, the increasing inflation, where the Sveriges Riksbank increased the benchmark rate to 0.75, and also writedowns in economic growth by both the International Monetary Fund and also the Swedish National Institute of Economic Research. That will of course affect the Gothenburg property market, and I will come into that. We can just look at this picture first where you see that there still was in Q1 an economic peak in the Gothenburg region. If we look into the office market in Gothenburg, we still see that the vacancies are on a fairly high level but stable. The prime rents are increasing in the central location driven by new office projects and the economic peak. The large volume of projects due 2022 has good occupancy rate in the projects.
We see that 2023 will be more of a normal year. The large volume of around 170,000 square meters will go back to around 40,000-50,000 new area square meters in 2023 and as well in 2024 because those projects have already started. If we look into the property market, we see stable prime yields in Q2, although you can see that we have said, we say also that there is an uncertainty going forward. We don't have that much transactions in Gothenburg to look if the yields have increased or decreased. The yields have been stable in Q2, and we will see what happens going forward. If you look at the industrial and logistics market in Gothenburg, we don't have any vacancies, barely in small vacancies.
Prime rent's increasing, and there's still demand from the e-commerce, and of course, here in Gothenburg, the need for storage and product development close to the Volvo and VCC plants and the new battery in Northvolt and VCC project. Also from storage and product development close to the Gothenburg port. The property market in industrial logistics are also stable in the prime yields. We see still, although there's more demand from the domestic, we can see a little change in that. We still have a demand from foreign buyers. As well as in offices, we see a few transactions in the Q1, Q2. Although there are many new projects on the way, so that's what's happening a lot.
Of course, I put in here as well that there is an uncertainty going forward on both property markets in Gothenburg. We haven't seen anything yet. We know that the property market is closely linked to the interest and the financial market, whereas the rental market is more linked to the economic situation. These are our properties, and we have a lot more properties from since the last report. That's because we have split. We have split our Gamlestadens Fabriker and the Södra Änggården to a lot of new properties, and I will come to that a little bit later in the report. If you look at the earnings capacity in June, we have very strong earnings capacity.
Now we are calculating in the rental contracts, the lease contracts for Kineum, and that's starting to show more and more in the earnings capacity. 57% of the fair value is in the central part, and we still have 16% in industrials and logistics. If we look at associates, you can see the project properties are 7%. Of course, that's a lift from an increase from Q1, where we didn't have the full effect of the Södra Änggården in the books. Now we're up to 7%. The associates is almost SEK 4 billion, whereas the 100% fully owned is SEK 26.955 billion.
The assets are from investment properties, are the Merkur, Holbergsgatan is SEK 2.8 billion, and project properties is the JV with Backasjö is SEK 1 billion. That will add up to SEK 3.9 billion, which is 73% investment properties and 27% project properties. We will continue working with this business model, where the ownership is a large part of what we are doing. We are owning properties, and the development also is a large part of Platzer's way forward. Maybe we'll be even more now when we see that the net transactions we will, especially now when there are more uncertain times, we will have to wait a little bit. We have made more selling than buying in the last half year.
We will keep on doing transactions, and we will also follow closely how the property market is developing. Everything we aim for is to make sustainable value in the future, and we can't do that without our people in the company, employees, and the money. If we look at what happened then in Q1 and Q2, we see that we invested more in the existing properties than we did last year, same period. We didn't do any acquisitions in the first two quarters. We did a lot of selling, more selling than we are usually doing, and that's the largest part of the selling is the reclassification and selling of 50% of Gårda Västra to Länsförsäkringar. That's almost SEK 1.9 billion out of the SEK 2.339 billion.
We also had very much change in value, a record high change in value, and that's due to the Södra Änggården, where we have the over value now in the books. Finally, we can put it there. We also had some good changes in the industrial logistics in Arendal from selling the to the Port of Gothenburg, and also from doing project Arendalskullen. I will come into that a little bit later in the report. Of course, the increase in the portfolio is then as the curves are going the right way again. In Q1, we had a little bit set down because of the transactions or a little bit lower market value than in Q4 2021.
Now we're on the curve again to growth. I will leave you and the-
Yes. The rental income, we still have a good economic occupancy rate, 92%, as we had in Q1. With the good net lettings, we see those numbers are stable going forward. We had an increase in rental income, in 1.5% if you look at the comparable properties for the period, compared with last year same period. Our income statement for this first semiannual report, we had an increase in rental income. Accordingly, an increase in operating surplus, provided that we have the cost in check. The clean, as we call it, the income from property management has an increase of 35%.
of 7% for the period if you look at the row number four in the chart in front of you. Because the IFPM on the row above is, there we have included the whole result from the associates, which is value changes, taxes, and other costs. The clean income from property management, including associate, is SEK 175 million for the period. And then we have, as PG mentioned, a change in value of properties for this quarter is SEK 1.6 billion. This sums up with the profit before tax at SEK 2.1 billion, which is a record for a single quarter. Our positive net letting for the Q1 and Q2 combined is SEK 160 million.
We came out of Q1 with SEK 54 million plus, and in Q2, we had SEK 62 million positive net letting, which adds up to 160. It's the best first half year we had so far. The best single quarter is still in Q4 2017, but we are trying to beat that as well. SEK 62 million in the second quarter of this year is a really good number, and it's a real change in market if you compare it with last year's numbers for us in the net letting market. And as you see, it's both in investment properties, but it's an overweight in the project properties of our lettings there.
That's the school in Södra Änggården, Internationella Engelska Skolan in Södra Änggården, and in our logistics, we have done some good letting out. If you look at some important key figures for us, we have an interest coverage ratio of 4.1. It's what was 4.2 this if you measure it by the same period last year, so one notch down. Our loan-to-value ratio is down to 42% now. As PG mentioned, we haven't done a requirement, but we've done some divestments, and then we have the value uplift that makes a really strong and solid balance sheet for us going forward. That will give us potential to meet any uncertainties that comes up ahead.
With the strong, solid economic occupancy rates, which means that we will have a good cash flow that we will have to manage with our financing costs, regardless if it's new refinancing or interest rate hikes. Our EPRA NRV is our net asset value, is a 31% increase if you look year-on-year, if you compare this with Q2 last year, which is a really good pace. We had a really nice boost both in Q1 and even more so in Q2 due to Södra Änggården. We work in this company with our net asset value and our core business, which is the blue line that we try to do better and better at every single time.
We have a good curve going up with a little bit of extra hike in Q2 2022. The red curve is the share price value. Over time, it should correlate, but as you can see now, it does not so much.
It's very volatile.
It's very volatile. It's down 50% but against our fundamental value actually. We have done some measures in the sustainability department, so to speak. It's in our core business, but we have had our climate goals approved, evaluated by SBTi, Science Based Targets initiative, which means that they are in line with the 1.5-Degree Goal under the Paris Agreement, which we are very proud of, and it keeps us moving forward to making a less impact on the climate change going forward.
The difference between the ones that we have achieved in Scope One and Two since 2011 is that we will aim to achieve climate neutrality in Scope One and Two without any climate compensation by 2030. With our ongoing work in our daily business, I think that's a good possibility, and I hope more companies like us will do that going forward. Then we have a first anniversary of our Nasdaq Green Equity Designation. We had the approval just the other day. We are now. We have now achieved that stamp for another year going forward.
That renewal process has gone well, and we have CICERO as a third-party auditors, which have approved our way of working, our governance in the company, and what we deliver in green climate managements, so to speak. Our properties, we have 91% environmentally certified properties in our portfolio. That portfolio is the backing for our green financing, which going out by June 30 is 70% green financing. And of course, our goal is to achieve 100%, so to speak. If we look at the financing now, we see a decrease in our capital markets if we look at the commercial paper market, because it has. There it has not.
It's been so volatile that you could call it digital. You do business or not. We are still interested, and we hope to see the capital market coming back. We are mainly in the bank finance market, so we have good relations with our banks, and we are doing good business with them. We have done, we do now, and we will do going forward. This is a chart of how our values has developed since 2019. The red chart up above is the property value. As you have seen, it's up at SEK 27 billion. Then we have the net asset value, which is the stronger red, dark red line that with the hike in Q2.
That has followed the property value pretty well and had an increase in Q2 this year. Then if you look at the interest-bearing debt, we had a solid development there, but a downturn, which is positive, of course. Less debt is always good in Q1, Q2, but then if you look at the share value that valuates indirectly the company, it doesn't correlate so well as we think it should. Transaction, Per-Gunnar Persson.
Yes. I talked about it in the beginning of this presentation that we have been selling more than buying, but we are going to buy 50% of the Kineum in Q4, and the agreed property value will be set in Q4, hopefully already in Q3. It's all mathematical, and we need to wait for the rental and everything in order to get the right property value. The sales we have done, much of them have already been assessed or by the buyers. But some of them are also due in. They are assessing. The three of the Södra Änggården will be assessed in the 30th of August. We will do those.
All those will be done in Q3, and we have already done three of them, as I said in the beginning of the presentations before this today. If you look at the development now, you can see we have a lot more properties in the interim report, and that's because we are now splitting up into new properties in Södra Änggården and Gamlestadens Fabriker . This is a chart where we show the stage one in Södra Änggården. To the right, you can see how it's gonna look when it's all finished, and to the left, you can see which properties are in stage one. All in all, we have sold 90%, but all of them will not be accessed in 2022.
Although the values are now in the books, the acquisitions will be in three stages. We are now in stage 1, and those will be acquired now in Q3, including the ones that we are doing ourselves, number 6 and number 7. Number 6 is the school that Fredrik mentioned, and number 7 is a garage where we are gonna do ourselves. The other one is the building, right? That would be residential buildings. If we look into Gamlestadens Fabriker , you can see here how from the beginning we had the Olskroken 187. That was the old building, and now it's split into 8 new properties.
One is not in this chart because it's not a development property. It's an investment property. The ones, Olskroken 188 is sold, was sold a couple of days ago. This is what we are doing, and this is the next step in our one of the next steps in our possible project pipeline, in the office building pipeline. It will be really interesting. We have a couple of very interesting negotiations in Olskroken 1814 and 1813. We will hopefully present some good renting out in Q3 or Q4 in Gamlestadens Fabriker . If we summarize the major projects underway, you can, and I divided them into offices and industrial and logistics.
It's very important for us. I mean, we are growing in all kind of economic situation. We're growing in the peak situation. We're also growing when there's a downturn, and we are doing it by ourselves in our project development. If you look at the office and industrial, you can see that the total investment in the office now in major projects underway is SEK 4.2 billion. The rental value is SEK 248, and that would be a yield on cost if we calculate with the property cost on SEK 5.1. If we look at the delta, because the total investments in our office projects, a lot of them are fair value, have fair values from the beginning.
If we look at the operating surplus when we started the project and the delta when we're finishing the project and compare that to what we are really investing and withdraw the fair value from the beginning, we have a yield on cost of our office projects of 6.5%. The industrial and logistics projects are a little bit easier to calculate because they're all new buildings. The yield on costs from those are 5.5%. Of course, the yields in these areas are around 3.5%-4% in the office buildings and also 3.5%-4% in the industrial leases.
It's a very good project, although we have had to in the industrial logistics have more to put in more construction costs in the calculations. Otherwise, we would have had an even higher yield on cost on the industrial and logistics project. It's also nice to see that the occupancy rate is 80% in the offices and 85%, a total of 82% in all our major projects underway. We have never had so many major projects underway in Platzer as of today. Of course, that would be good for the earnings capacity as it like as I said before.
I have done a little chart here to show you what is happening in the earnings capacity because it's sometimes difficult to compare the projects underway and the earnings capacity. We can go to the total, where we have a rental value in the major projects underway of SEK 351, and the fair value is SEK 5.3 billion. The rental value in the earnings capacity is SEK 147. That is now included in the earnings capacity. We also have SEK 141 in signed lease contracts that is not in the earnings capacity, that will be in the earnings capacity in short after the first of January 2023.
If you take those 147 and 141 and divide it by 351, you will get 82%. The one, the SEK 63 million out to the left, to the right is what we are working with. That's still the vacancy in the projects. That's what we have to work with. The other one is already signed and will be including in the coming reports. I think that will show you a little bit that there's a great things are happening going forward in the earning capacity with the rental values in that we have already signed but is not in the earning capacity. I will go through some of the projects, and I will do it a little bit faster today because there's so many now.
Kineum, whereas we have the 43,000 lettable area, which its completion is where the occupancy rate is 90%, and we are completing it in Q4 2022. The new building will be BREEAM excellent, and the old building will be BREEAM in use excellent, we hope, because it could be also very good. It depends a little bit on the hotel in the building, the tenant, the hotel tenant. Like I mentioned before, we have Arendalskullen, which is in the middle of Arendal, which Arendal is a large property. It's 7,000 new lettable area, and the completion is Q2 2023, and we will have it certified in BREEAM very good. We also in one office, the other office project in Gullbergsvass, Aria.
The completion occupancy rate still only 44%, so here we have a challenge to work with the renting out. Completion in Q3 2023, we are aiming for BREEAM in use very good in that building. Sustainability certified. Sörred phase II. The new Sörred, where we just rented out to VCC, Volvo, will be completed in Q4 2023. The phase I is already on the way. Both those projects are on the way, although we have 60% left to rent out in the phase II. Phase I is 100% re-rented out, and both those projects are on the way. We also, like Fredrik said, we are also starting the Södra Änggårdsskolan, the school of Södra Änggården.
It's the Internationella Engelska Skolan tenant. 100% occupancy rate, and will be completed to school start in Q3 2024. We were working with the BREEAM or Miljöbyggnad Silver sustainability certified. The JVs, we start with Sörred Logistikpark. We've already talked about this in the Q1 report. It was already in the Q1. The tenant, Volvo Cars. Completion Q2 2023, and here we're aiming for BREEAM Excellent sustainability, which is the highest BREEAM. Also the V1 project, where we have Schenker as a tenant, and the occupancy rate is 69%. We're here, we were doing the shoveling starting the project. The V2 project is 100% rented out to Sportshopen.
We also have a V1, V3 and V4 project which we are working with. It's another 45,000 square meters. We have now done the new building. Here is the Merkur, which we are owning with the Bygg-Göta. The new building we have rented out to 90% and done projects, and now we are connecting the two buildings to each other, and now we are also renting out the old building and doing a project with the old building. We have signed a tenant on half of the old building. Now the old building has an occupancy rate of 88%, and the new building has an occupancy rate of 90%.
We're aiming for BREEAM in use very good for the old building, and the BREEAM excellent is already in the new building. I will stop with saying that we are moving forward in Platzer. We are doing what we always have done, and we are doing it without if it's an economic, the economic. Of course, we must take into account the economic situation. We are also providing our own growth with our projects. We are doing it in Gothenburg, and still a lot of growth and good things happening in the Gothenburg city. We're doing it in a green way. I will stop saying that.
Do you wanna add something before we hand over to questions?
No, I think that sums it up. I'm open for questions.
Thank you. If you wish to ask a question, please dial zero one on your telephone keypads now to enter the queue. Once your name has been announced, you can ask your question. If you find it's answered before it's your turn to speak, you can dial zero two to cancel. Our first question comes from the line of Marcus Henriksson of ABG. Please go ahead. Your line is open.
Thank you. Hello, Fredrik and PG. A few questions from me.
Marcus.
First off, you mentioned that construction prices were up around 20%-25%. How are you able to bring that into negotiations with
With tenants and would that be a large driver of the increased rental levels that we have seen in the logistics projects?
I mean, it's right. The answer, I think it was two answers to that. Of course, if you only rent it out, then it's difficult to change the rents. If you haven't rented it out, you can always do a higher rent. Once you have rented out and you start a project, if the construction prices go up, then it's difficult to change the price. I mean, you have the price. We can also see that there are things happening all the time on the construction market. I'm not sure we will have the 20%-25% up in Q3. We will have to see.
The boring answer, Marcus, is that we will have to be in close line with the market and work as much as we can with the rents, and also as hard as we can with doing comparisons on the construction prices. It was not a-
Very much.
Clear answer to your question, but, there I think there are no clear answer on that. We will have to work on both sides.
Yeah, fair enough. I just noticed that prime levels were up quite a lot here in Q2 versus Q1.
Yes
Q4.
Yes.
You talk a lot about investments. You have a run rate right now of SEK 1.3 billion trailing 12 months. What is reasonable if you look at your pipeline and also take into account the cost inflation, where I assume that the margins in office projects are maybe harder to continue with than in your logistics projects?
We are aiming not to go over 10% on the project properties, and we are around 7% now, but we are selling those project properties. We are now soon to finish the Kineum project. I would say that the goal will be not to exceed the 10%, around projects around 5%-8% of the fair value. I think that would be a good pace for Platzer.
Okay, thank you. You also earlier said that you would like to buy more property. Looking at the valuation now of the share, you could buy your own property yield of around 6%. What's your view now on upcoming investments?
Our view, if you ask if we are to buy our own shares, then I will have to say that that's a question for the board, not for the management. We don't have any plan that we have communicated on that right now. Talk about investments, we are always open for transactions and acquisitions. We have a couple of acquisitions in the pipeline that we are discussing right now, but that will be more discussion in the Q3 about those. I think we will do some transactions, acquisitions in Q3 or Q4. We are all waiting a little bit for where the yields will end in or what happens with the yields.
Okay, fair enough. A question on financing. What kind of marginal spread increase have you seen since, say, Q4 2021 when you negotiate new financing with your banks?
I would say we have the positive situation that we haven't had any large amount or large share of refinancing. With banks, we are about 20 basis points in that area when we compare it with pre-Ukraine levels. I wouldn't say it's. If you read the press, as we all do, it's total panic. I would not say that's a panic level right now. It's slowly moving upwards, and we do not know where the peak is right now, but we are solid financially, good liquidity, and good credit agreements. We are feeling pretty solid. Yes.
We have right now 15% in on the capital markets. I mean, where we can see the largest changes in on the commercial papers, that's where we see the big changes from. We are not increasing the share of capital markets because our bonds are what they are. If we should do any forecast, it's probably that share will increase in the near future, and decrease in capital markets.
Thank you. Last question. Could you tell us anything about ongoing tenant discussions within office or logistics where you have, say, good discussions? Or are any tenants signaling any softer outlook? What do you currently hear?
No, we see the. I mean, we had two not very large, but two lease contracts signed in 1st of July that will be included in the Q3. We're starting out very good in Q3 with those two, and that was both office. I mean, it's the Aria project. I would have hoped that we will have come a little bit further on the occupancy rate in Q2, but I'm always a bit hesitant. I'm always a little bit cautious to that we should move faster. But we have discussions with the logistics areas.
Both the V1 project where we have more space, and also the Sörred 3:1 project where we are rented out to VCC, which is 40%. Both those we have sharp discussions. I think that will be in Q3.
Thank you. Thank you for taking my questions.
Thank you, Marcus.
Thank you. We currently have one further question on the line. Just as a reminder to participants, if you do wish to ask a question, please dial zero one on your telephone keypads now. That next question comes from the line of Albin Sandberg of Kepler Cheuvreux. Please go ahead. Your line is open.
Hi there.
Hello, Albin.
A few things for me also. I know, P-G Persson, you said when you started the Platzer Fastigheter, I believe you started the financial crisis and y ou're mentioning here you have been net sellers in the first half, but I guess some of these deals have been, let's say, decided already before. Could you give just some more color now on how you're feeling about the cycle and you know, the actual actions you're taking in the company to you know, possibly prepare yourself for a downturn? Or if that is a two dog scenario, I guess both on the project side and also on the financing side and a little bit on that.
I mean, do you say anything about the financial? I mean, if you look at the market right now, Albin, it's much better than everybody's. I mean, you compare the market to the share and to the global. Of course, I mean, the rental market is more connected to the economic situation in Gothenburg. If we have a very steep downturn in the economic situation, that will of course affect the rental market. We don't see that yet.
I mean, as the IMF and have written down the growth prognosis, so of course, I mean, that could come and we are preparing ourselves very much, doing our homework with lowering the vacancies, working with the property cost, exactly what we did in 2009, where we had a similar situation. Now we're not sure if it's what's gonna happen in Q3, Q4, but we are preparing ourselves, doing whatever we can to look at every little, you know, detail in the property costs and in the vacancy levels. We have 66% of the vacancy in Platzer comes from seven properties.
We have a lot of work in progress from those 7 properties, 7 out of 81 properties. We know exactly where to put the resources, and we are working hard to do so. I think that's the positive thing with being a local like Platzer. We know our market very well. We know what we can do, and we can handle both good economic peak situation, but also a downturn. That's the rental side, the rental market side. If you look at the property market, I mean, you're more exposed to global and macro. I mean, yield compression is normally something that you can't do so much about.
I mean, we can work with our areas. We know that Gamlestadens Fabriker , the new buildings are yields around 4.25%, and the old buildings are yields 5.75%. We can work doing the old buildings better, so we can have a yield compression from that. But we can't do so much if things are happening globally. What we are doing there is to get our operating surplus as high as possible, so we can meet the hike if there is an increase in the yields. The financing, Fredrik.
Yeah, I would like to add on. It's still economic peak if you look at the trade indicator for the region. The corporates are doing pretty well, and the PMI index is still above 50. It's not all sadness all around because those are the p arties that we sign our lettings with, and if they have possibility to pay more rent, that will mean that we will increase our cash flow. That will mean that we will be more stable to meet the financing costs moving upwards. You have to take into account, we have durations in both our financing and liquidity, and our interest rates. It's not an instant effect. You can't add on 200 basis points on our existing portfolio today because we have durations in all our financing agreements.
It will be a slow pace going forward. Now we have the Stibor, the short interest rate. It has moved substantially from year-end up till now. We had taken 50% of that hit, impacting our interest rate going forward. But that's where the short interest rate is now. If that's stable, is leveling out, then it will be leveling out, and then we will have to look at when we do our refinancing or doing some new derivatives for interest rate swaps, that's when we do business at the new levels. Because we have the solid balance sheet, and we have divested, and the deals that has been done, it's been agreed upon in 2018, 2017, and JM Gamlestaden it's even 2015.
Yeah. So it's pretty old agreements that we are now delivering upon. Then, of course, in the hesitant market, of course, we would like to see what happens with the yield, what will happen with the property market. We know our near market, the region, pretty well, I would say. We are looking for opportunities in that market.
Yes.
There's no rush. Summarizing, Albin, we are working harder when it's tougher times, and we're also following the market situation very closely, so we can do changes if there are changes in the market.
Okay. Great. That was a very thorough answer. I would also just ask. I appreciate your more transparent reporting on your JVs. Just, if I look at the recurring income part in Q2 from the JVs is around SEK 10 million. I just wonder if that's a clean number relevant for looking on a forward-going basis?
Yeah. It will be dependent on when tenants are moving in, but that will be. In the short term, it will be a good number, I would say.
Yes. Okay. Yeah. Thanks. My final question is on your valuation of your properties. Do you recall what kind of CPI number you have in for next year, rent assumption on that? This year was 2.8. Next year, we don't know yet.
Yeah. Sorry, I'm just trying to figure out what.
But in.
Would be your valuation assumption?
Yeah. In the valuation, it's still 2%. We're still using. In this Q2, we still use the old numbers, 2%.
Okay. Yeah. Okay. Great. Well, thank you very, very much for those questions. Very clear.
Thank you, Albin.
Thank you, Albin.
Thank you. Once again, if there are any further questions, please dial zero one on your telephone keypads now. Okay, there seem to be no further questions from the phones at this time, so I'll hand back to our speakers for the closing comments.
We will thank you all and wish you a good vacation when it comes.
Yes. Thank you very much for.
Thank you very much.
for watching.