Hi everyone, and welcome to the presentation of the first nine months of 2025 for SLP. My name is Filip Persson, and I'm the CEO of the company. With me, I have our CFO, Matilda Olsson, who will later go through the financial development. We will start by looking at some highlights from the period, and then we will go deeper into our property portfolio. Matilda will conclude by presenting the financial development. We have another strong quarter behind us, and we are very pleased with the development of the company, especially considering the tough market environment in which we have operated in the recent years with the pandemic, the troubled world, and the recession. We continue to deliver results day by day, and this is evident in the fact that we have a high net operating margin.
We have low central administration costs despite the portfolio having grown significantly, and that we have low margins on our loans. Our development work, which goes hand in hand with our sustainability work, is yielding results through a large portion of the certified properties and a full 97% sustainable financing. Our rental income has increased by 44%, and this is, of course, partly due to the acquisitions of properties, but also the persistent work carried out within the property management. The profit from property management has increased by 50%, which shows that we managed to retain a large part of the increase in net operating income in our result. The loan-to-value ratio at the end of the period was 48.4%, which is far below our long-term risk limitation of maximum 55%.
The interest coverage ratio of 3.1x is also far from our limitation of 2.5x and is a result of our property management, where we constantly work to improve our net operating income, and that we have efficient internal processes and routines, and that we have good dialogue with our five banks. The loan-to-value ratio and the interest ratio, in combination with our strong cash flow, give us a good opportunity to continue to acquire properties with the existing capital structure. Growth in profit from property management per share is 33%, which exceeds our target of 15% by a good margin. The net asset value per share has increased by 9%, which means that we're well on our way to reaching our target of 15%.
During the period, we have continued to acquire properties with stable cash flows and good development potential and have acquired 11 properties with a property value of approximately SEK 2.4 billion. Looking ahead, we have a strong pipeline and see good opportunities to continue growing with acquisitions of logistics properties in good locations with great development potential. If we briefly look at the company, we own 122 properties at the end of the period, with a total property value of approximately SEK 16.4 billion and a total area of approximately 1.4 million sq m. Our properties are located in good logistics locations along the major highways and railway junctions. The demand for logistics properties remains high and is confirmed by our occupancy rate of 97%, which has been at high levels for a long period of time.
We also have a long average remaining lease period in our lease agreements of approximately 6.7 years, which facilitates the dialogue with our banks regarding financing. We are keeping pace in delivering on our two overall goals: to increase the net asset value per share by 15% and also to increase the profit from property management per share by 15%. Matilda will return to this later in the presentation. If we look at transactions, the acquisition of logistics properties with development potential in good locations is an important part of our strategy so that we can continue to achieve our financial goals in the future. When we evaluate properties, we primarily look at the location and the potential, but also the property's characteristics in the form of ceiling height, number of doors, etc.
We like stable tenants, but this is what we place the least importance on, as we place greater importance on the property being attractive on the rental market and appealing to many potential tenants. We also do not focus so much on the direct yield on day one, but rather on what we can do with the property and what value we can create over time. The potential that we look at can be found in different ways, but it's often in the form of high operating costs, vacant space, the possibility of extensions, and redevelopment, and sometimes also too low rent levels that we can renegotiate. As previously mentioned, we have acquired 11 properties in five separate transactions and have also agreed to acquire another property in Gothenburg with a 12-year lease agreement that we have not yet taken ownership of.
Since the company was formed, we have completed approximately 75 transactions, which is approximately one transaction per month, and we see good opportunities to maintain this pace of acquisitions, both in terms of supply on the market, but also in terms of our financial muscles. If we look at the property portfolio, we have tried to describe the potential that we have by dividing the portfolio into two parts. We have properties in property management, which are properties where we have realized the potential that exists through hard work, which are now fully developed. These properties, which we usually call cash cows, generate a higher NOI and have a lower vacancy rate, which in turn provides the opportunity for a higher LTV ratio. You can therefore say that these help finance the second part of the portfolio, which is the development properties.
The development properties are those properties where there is a potential to increase the NOI by implementing measures that we have usually already identified in the acquisition process, where they usually are, in some ways, we can lower the energy costs, we can carry out extensions and renovations, and rent out vacant spaces, and in some cases renegotiate the rent if it's not market-based. Today, about half the portfolio in terms of area is development properties, and if we look at the difference in NOI between the two categories, it's approximately SEK 164 per square meter, which means that all other things equal, we can drive a development of the NOI in the development properties with about SEK 164 per square meter, which is in half our portfolio.
In addition to the potential within the premises that already exist, we also have a lot of building rights on our properties where we can drive additional value, and these building rights are not a land bank. They are usually found when we buy an older property that has generous zoning plans, and we usually get these building rights for free. If we look at our projects, we currently have one major new construction project underway. It's a new construction of 38,000 sq m in Falkenberg that is going according to plan. In addition to that, we also signed a 10-year lease agreement for a new construction in Malmö of 27,000 sq m to a company called Salix, which is an existing tenant.
We are really pleased to be able to grow with them and to continue to be their landlord, and it shows that we have a good dialogue with our tenants. These major new construction projects are, of course, important to us, but just as important are all the smaller projects that we do daily, where we have now approximately 175 projects running. It's these smaller projects that have largely enabled us to report positive value changes quarter after quarter. We identify these smaller projects already when we evaluate the properties for an acquisition, but also in the very active dialogue we have with the tenants, and in many cases, we do the projects together to create win-win situations. That applies to everything in terms of projects such as lighting, better heating system, better ventilation, solar cell renovations, extensions, etc.
During the period, we invested SEK 67 million in energy projects and approximately SEK 164 million in other investments such as smaller extension projects and renovations. If we look at the return on these projects, it's significantly higher than the required return that we have in the portfolio, which is about 5.9%. When it comes to tenants, we have a broad mix of strong tenants. They represent different categories, but the main categories are food, beverage, and transportation. We see a strong demand from our tenants, and what's driving this demand is a number of major trends in the society. It's, of course, the changing trade patterns where e-commerce continues to increase both in the number of packages and in volume.
We, as consumers, have increased demands for circularity and sustainable transports, but also the current situation in the world, which is driving companies to secure their goods flow by moving production and warehousing closer to the domestic market. Of course, we have Sweden's increased investment in the defense and also the membership in NATO, which will mean a larger need for logistics space. We have a very good collaboration with our tenants and currently have three Commercial Managers who focus daily on meeting with the tenants to see how they are doing and what the needs they have and to be a good partner that makes their everyday life easier. This is a very important part of how we can continue to deliver positive value changes over time.
During the year, we have also conducted an NQI, which is a survey where you investigate how the tenants think of you, and we reach a result of 81, which is a large improvement from our first result of 74 in 2023, and it shows that the close dialogue with the tenants is appreciated. We have a positive net rental during the period of SEK 6.2 million, which is really strong considering our high level of letting ratio. We are also able to maintain a remaining lease period of 6.7 years, which reduces the risk of the portfolio. We always aim to increase the lease periods instead of trying to squeeze out the last crown in rent. Our 10 largest tenants stand for about 32% of our rental income, but they also have a large remaining lease period of about 9.1 years, which is also very good in terms of risk.
We continue to develop our sustainability work, which goes hand in hand and is a natural part of what we do when we refine all logistics properties that we have. We look at our sustainability work from three different perspectives. We have the planet, the people, and the business. In each of those, we have concrete goals that we monitor quarterly. In 2024, a large number of our goals were achieved early, and therefore, we have communicated and updated sustainability goals in the first quarter of 2025, most of which are aimed at 2027. Among other things, we aim to reduce the share of lettable space with energy classes F and G to a maximum of 5% of the portfolio by the end of 2027 and have net zero emissions in the value chain by 2040. With that, I will hand over to you, Matilda.
Thank you, Filip. As Filip mentioned, we have another strong quarter behind us. Let's start to look at the outcome of our overarching goals, where we had a growth in net asset value per share of 9% during the first nine months of the year. This is well on its way towards the goal of 15% for the full year. If we look at the profit from property management per share, we had a growth of 33% compared to the same period last year. I will soon return to what has driven the increase during the period. We continue to have a stable financial position with a loan-to-value ratio of 48% in relation to our risk limitation of a maximum of 55%.
We have an interest coverage ratio for the period of 3.1x compared to the risk limitation of 2.5x . As we see it, this is a financial situation that gives us great flexibility to be able to take advantage of acquisition opportunities going forward. Our earnings ability, which is a snapshot as of October 1st, continues to grow. We are very proud that we have significantly improved our earnings ability during the quarter for the same property portfolio. If we compare it to a quarter ago, the profit from property management has increased by SEK 20 million in one quarter, both driven by a higher NOI and a lower financing cost. As we like to point out, we see a significantly smaller increase in property costs and administrative costs.
This shows the good cost control in the company and also the scalability of our processes as we grow the property portfolio. In our earnings ability, we now have over SEK 900 million in NOI and over SEK 600 million in profit from property management, which of course also affects our cash flow significantly. If we look at the income statement for the first nine months of the year, the rental income amounts to SEK 744 million, which is an increase of 44% compared to last year. Our net operating income increases even more by 48% and amounts to SEK 656 million for the period.
The increase is due to the fact that we have a larger property portfolio, both as a result of our acquisitions and also that we have completed a number of major projects during the beginning of the year, but also the development of the properties that take place on a daily basis, which for example has resulted in increasing the occupancy rate over the last 12 months, which is now 97%. For the comparable holdings, the NOI increased by 4% compared to the previous year. The increase is partly related to the CPI adjustment of rents, which was 1.6% this year, but it's mainly linked to the development of the portfolio, which both increases the rental income and reduces the property costs. If we look at the profit from property management, it increases by 50% and amounts to SEK 430 million.
The higher financial costs compared to the previous year are due to the new lending because we have a larger property portfolio, but it's largely offset by the lower average interest rate compared to last year, which I will return to shortly. If we compare to the previous quarter, Q2, the financial costs are at the same level, and this is despite a higher average loan volume. We continue to deliver positive unrealized value changes in the properties, and we have still not had negative value changes during a single quarter. For the first nine months of the year, the unrealized value changes amounted to SEK 264 million. The positive changes come from lettings and renegotiations, and this is also reflected in our operational key figures, where we have increased both the occupancy rate and extended the remaining lease period significantly over the last 12 months.
We also have positive value changes due to profit in new construction projects, investments in the portfolio such as energy projects, and also deduction for deferred tax on acquisitions. The average return requirement in the valuation is the same as the beginning of the year, which is 5.9%. It also should be mentioned that during the quarter, we have adjusted the CPI assumption for rents for 2026 from 1.5% to 1%, and this has a negative effect on the value changes of about SEK 25 million. Despite this, we have positive value changes during the quarter. At the end of September, the property value amounted to about SEK 16.5 billion, an increase of approximately SEK 3 billion during these nine months.
The increase during the year consists of SEK 2.3 billion in acquisitions, investments in the portfolio of almost SEK 400 million, and the value changes of roughly SEK 260 million. As mentioned, we end the period with a loan-to-value of 48% and cash holdings of about SEK 191 million and a net asset value per share of SEK 32. We continue to work actively with our financing, which continues to consist of 100% secured bank financing with Nordic Banks. We also continue to experience that the banks are very positive about continuing to grow with us and doing it at attractive terms. During the quarter, our average interest rate decreased from 3.6% to 3.5%. This is both an effect of the decreasing three-month STABER, but also of our continuing to reduce the average credit margin, which is now 1.32%.
During the year, our average interest rate has decreased by 30 basis points from 3.8% to 3.5%. As we mentioned last quarter, we refinanced about SEK 2.8 billion of the loan volume in advance. This lowered our credit margin, which we can see an effect of in the result for the third quarter. We also continue to hedge part of the loan volume in line with our financial policy to keep the risk at a good level. At the end of the third quarter, we had 68% of the loan hedged through derivatives. As Filip mentioned, we also continue to work actively with sustainability and to convert our portfolio to green assets. This is reflected in the proportion of sustainable financing, which is now a full 97%. This also gives us a discount on a margin of 5- 10 basis points.
Overall, looking at financing, we see we have a strong financial position to continue to grow. This is not least given the significant cash flow that the properties now generate. In addition to the cash holdings of about SEK 190 million, we also have additional available loan volume of approximately SEK 1.3 billion. If we look at the shareholder list at the end of September, there are no major changes compared to the previous quarter. We got one good news regarding the share during the quarter. We received the news that SLP had been included in the EPRA index at September 22nd. This is something that should increase the visibility to a broader investor base and also facilitate international capital flows to the company. With that, I hand over to you again, Filip, for a short summary.
Thank you, Matilda. To summarize, SLP is in a very strong position. We are seeing a positive development where we deliver a strong number, both in terms of NAV growth and growth in profit from property management per share, which proves that our daily work to improve the NOI and our investments in the properties are truly paying off. We also continue to acquire logistics properties with development potential, which is an important part of our long-term strategy. We have a strong financial position and banks that want to grow with us. That was all from us today. Please feel free to send us any questions to our info email. Thank you.