Earnings Call: Q4 2020

Feb 16, 2021

And welcome to this presentation of Wilbur's Year End Report 2020. We see stability and more light insight. We continue to strengthen our key figures, net netting positive in every quarter 2020, and we have, during 2020, continued to improve things we do in every decade we have been able to figure out. Our goal is to be even more prepared when we can meet again. And so far, we follow that path. When corona try to keep us apart, we find other methods to stay close, close to our tenants and close to our dedicated employees. As said in Q3, BigWorld has both stability and grit. For the full year 2020, we increased our rental income by 3% to SEK 3,074,000,000. The operating surplus increased by 4% to $2,222,000,000 and income from property management increased by 3% to €1,830,000,000 a new record that we have to keep in mind that Q4 included both saving a bit on our own cost on the positive side, but we also had some extra discounts and reduced revenues in this specific quarter. The net results amounts to SEK 2,222,000,000 which corresponds to SEK 14.46 per share, and the Board proposes a dividend of $5.25 per share. During 2020, the EBITDA increased 12% to EUR152.44. Page 3. We continue with positive net letting also in Q4 plus €16,000,000 We have signed leases for €246,000,000 during 2020 and termination summarized to €215,000,000 for the full year plus €3,100,000 This is not a record. But in this very special year, I'm very proud of our organization finding good deals in every city with both governmental tenants and private companies. The net lending in a historical perspective at Page 4. Positive figures in every quarter. Regarding the terminations, we have to keep in mind that some of the termination actually are chosen by us. In a long term perspective, we would like to improve some of our properties into a new future. And during this time, we have taken the opportunity to try empty them, for example, Boschowset and the part of Lactoseet in Malmo and Wettert 1 in Lund. Taking this into consideration, the positive net letting is a stronger signal that It's possible to make new deals in this market. Page 5, our tenants that makes it all possible. 7 out of our 10 large tenants are from the governmental sector, and that's important in a long term perspective. The rental income, which comes from public tenants, is 23%. Public tenants are important in our portfolio, but as said many times before and worth mentioning again is that we in this region have a wide spread of many sectors and that is also a strength. Page 6. Rental value is now SEK 3.268 €1,000,000 per year and rental income €2,946,000,000 EBIT down due to both divestment and vacancy. As usual, we especially point out our like for like values. And in rental growth like for like, the Rental value is up 1.7 percent to SEK 3.187 1,000,000,000. Our goal to beat index with 1% is achieved since index this year was 0.3%. We performed well in relation to index and the rent level is growing, but of course, slower than a more normal year. Page 7. The occupancy rate is a bit lower in Malmo and Helsinki War than last quarter, 90 2% 91%, but 1% better in loans, 87%. As mentioned, we have chosen some terminations, both in Malmo and loans, transforming properties towards a better future, Flaktuset and Brashuset in Malmo and Daffen Andalet III and Waffet I in Lund, for example. The operating surplus from offices summarized to SEK 1,865,000,000 and a running yield at 4.9 percent. Total value, EUR 38,000,000,000,000. Page 8. We see continued high demand in logistic and production, and here, occupancy is slightly up. In total 92% occupancy, a running yield at 6.8% and total value of SEK 5,736,000,000. Lower value since the last report due to divestments, but now we expect that the remaining portfolio will deliver good value and good cash flow in the future. That's a part of our plan. For the entire property stock, Page 9, The occupancy rate is the same as in Q3, 91 percent operating surplus, SEK 2,263,000,000 and a running yield of 5.1 percent. Page 10, changes in market value of our properties. We have made acquisitions for EUR 3.27 at SEK 1,231,000,000 sold properties at a value of SEK 1,540,000,000 and changes in valuations of €806,000,000 and together with currency translation of minus 2.99 €91,000,000. That's summarized a property value of €6,000,000,000, 72,000,000. Changes in valuations are affected by new leases, lower inflation forecast and a bit lower yield logistic and social infrastructure properties like Kranen 2, for example. Page 11. And that means that despite the large divestment of 21 Properties and the negative currency translation, We increased the value a bit also during 2020. So the curve continues in right direction, but we will increase that tempo further. The math of our value at Page 12%, 42% of the value in Malmo, 18% in Copenhagen, 23% in Heltingborg and 17% in Lund. The value is highest in Malmo, but now the volume is highest in Copenhagen. Interesting to see that the discussion with for tenants continue in all our core cities. We announced a new lease to Landsevikenbankenhardmessen Helsinki World last week, and we also have opportunities with, for example, governmental tenants in Lund. Neuwassenet 4 in Lund. It's almost the only object on that market that can offer large open spaces. It will be interesting to see when we sign next larger agreement that might be in Lund. Page 13, a glance of the general situation. Copenhagen have been more in a lockdown situation and the border has been closed except for work commuting. We still have the possibility to keep our healthy space both on our way to work and at work, so we can, to some extent, actually work in the office. More and more people feel that the situation of working at home with schoolchildren and the rest of the family home at the same time has its challenges. This means that the office hotels have a high occupancy rate, especially when separated rooms are offered. We have, together with Navet, made an investigation not only by asking people what they think about their future demands, but also by measuring how people's behavior has changed. It's an interesting method where we can use oil technology, and that's a prerequisite for success in this method. We can, for example, see that while 80% in their post state that they are neutral or positive about working from home. Searches for mental illness also increased sharply. The lack of social pressure is massive, and we also see that many feel a lack of confirmation regarding how effective they actually are at work. We are absolutely convinced that we will work at work also in the future, but in a good combination with other places, at home or an extra office close to home. Now over to you, Arvid. Thank you very much, Rigel, and good morning, everyone. Moving to Slide 14, We'll have a look at the income statement for Q4. Rental income in the quarter was SEK 751,000,000 which was down 2% versus same quarter 2019. That was, of course, affected by the divestment, which took effect on the 1st December, Which decreased the rental income during the quarter with SEK 8,000,000. We also had a few negative effects, which we didn't really see coming going into Q4. We have negative currency effects of €4,000,000 We gave additional discounts due to the 2nd wave of the corona pandemic amounting to €5,000,000 in the quarter. We also had decreased income from parking of €3,000,000 and decreased income from our restaurants in our Danish operations of SEK 3,000,000 also affected by the 2nd wave of the corona pandemic. Looking at the operating surplus that amounted to SEK523,000,000 in the quarter, roughly flat versus the same quarter 2019. I think what is positive is that the surplus ratio increased by 1 percentage point versus 2019. Income from property management amounted to 4.19, down 8% versus Q4 2019. You should remember, however, that in Q4 2019, we had a one off effect in of SEK 34,000,000 coming from applying a new accounting method when it comes to income from joint ventures. So that should so the €419,000,000 and the €456,000,000 are not completely comparable. We had positive value changes in the quarter of just over SEK 400,000,000 and we ended up with a profit for the period in Q4 2020 of SEK694,000,000 Moving to Slide 15. Looking at rent collection for the Q1 rents. As of end January, 99% of the rents due end of December have been paid, which is a bit better than normal. It's also worth mentioning, we feel that rent deferrals due to discussions with tenants affected by the corona pandemic, amounted with SEK 20,000,000 in outstanding euros as of end December. And those payments of those deferred rents are due during 2021. Total during 2020, we approved discounts of SEK 19,000,000 net of state reimbursements during 2020. Moving to Slide 16, looking at the balance sheet. During 2020, the investment property value increased by SEK600,000,000 And as Rika said, that is despite divestments of SEK 1,500,000,000 and negative currency effects of SEK 300,000,000. On the other side of the balance sheet, equity increased by €1,500,000,000 and borrowings decreased by SEK 1,400,000,000 Moving to Slide 17. That translates to a number of key figures. Our equity assets ratio now stands at 41.3% and our LTV at 48.2 percent. And the balance sheet has actually never been stronger. Our interest coverage ratio continues to be very strong at 6.5 times. Looking at numbers per share, I think the most important number to look at is probably the EPRA net asset value per share, which adjusted for dividends increased by 12% during the year to SEK 152.44. Moving to Slide 18. Against the background of our earnings and our balance sheet, The Board proposes an increase of the dividend to 5.25 which is an increase of 17% versus last year. And if the Annual Shareholder Meeting as decides on this. It will be 15 years of rising dividends in the history of Filbworks. Continuing to Slide 19. You can see the Historic development of EPRA net asset value per share. And since 2009, the Annual average growth has been 17% adjusted for dividends. On Slide 20, you see the historic development of our financial ratios, where the equity asset ratio continues to go up, The LTV continues to go down. And the interest cover ratio, as I mentioned earlier, at 6.5 times, It continues to be at a very, very healthy level. Our financial stability is also, we think, Important to look at in terms of the key number net debt in relation to EBITDA. And on Page 21, you can see the historic development. And during 2020, you can see that our financial position has strengthened and the net debt to EBITDA now stands at 10.9 times. Looking at our financing on Slide 22, the sources of financing is roughly the same as previously. The proportion of bond financing at 19% is slightly lower. But generally, the split between bank loans, Danish mortgage loans and bonds remains stable. The structure of our loan portfolio you find on Slide 23. The average interest rate in the portfolio now is 1.32%. And the average fixed interest period is 3.6 years and the average loan maturity, 6.1 Yes. The structural development of those two key numbers you find on Slide 24, So where you basically can see that the loan maturity has been around 6 years for the past few years. And the fixed interest period over the past couple of years have been rather stable at between 3 4 years. My last slide is Slide 25, where you can see our available funds, that is unutilized credit facilities plus liquid funds as of quarter end since 2015. And we have a strong liquidity position and available credit facilities at approximately SEK 3,600,000,000 currently. With that, I hand back the words to you, Ulrika. And it's time for acquisitions and divestment, Page 27. As mentioned, we agreed in Q3 to sell 21 properties in Ademalmur to Blackstone. Transaction day was 1st December. Page 28 and the 1st October, we bought Valusburn 5 in here in Usnlem, Copenhagen, 55,000 square meter land and 6,300 square meter lettable area, fully let to GSE, Matta Janus Lejenhas, with whom we also have signed a new lease from the 1st January. And let's go to investments in progress, Page certainty. We have, during 2020, invested SEK 1,231,000,000 in ongoing projects, and it remains SEK 1,311,000,000 we invest in already approved projects. Overall, the projects continue according to plan without any effects from corona. We also see that this is a contribution actually to our region that we can continue with our investments, not at least since we use mainly local suppliers. Page 31. We have just started this project, Kartekta and Asphaltgeffen 5 in Hillier, with 16,000 square meters lessable floor area. Large floors and a good interest from several larger tenants. We really like how we have been able to create great efficiency and a warm inner core, Page 32. Highest sustainability standard, both in carbon dioxide footprint, environmental classification and well certification. We call it a human certified building. Discussions with possible tenants will continue along with the production phase that will be ongoing until Q2 2023. Fission is really a gift in this industry. We have no vacancy in this area. So it's important for us that we can offer the market a good product. Page 33 and at Suna Noa twelve fifty four. These two projects are under completion, one for Region Council of Skouane, the transport hub and one facility for Vivo Bill, which among other things will include a state of the art service center for electric trucks. Investment, SEK 96 plus €58,000,000 completion Q1 2021. Page 34. At Hymbegwarden 7. We have just started a project for Beckhoff Automation, a state of the art office at a good transport location in Malvern. It's a long lease and a new tenant for us, completion Q3 2022. Page 35. In Claland II, we signed a new lease in October for Region Council of Sfana. In total, we invest SEK 237,000,000 for the Union Countless Varna and University of Malmo, a building fully leased to public tenants and long leases. Page 36, Orestola 1 or Prisma is now in its last phase of completion. We invest SEK 45,000,000. Our tenant hedge is already a success, and together with sub forty six, Research Bank, KPMG and Atkins. They will soon fill this building with creative meetings. 60% left, and we will continue to fill the building and complete the last parts of work for our tenants. Page 37. Next last project in Helzborg and under completion is Telenalen 1, Helzborg Central Station. Since Q3 report, we have signed another restaurant, and of course, that's a challenging time for that. And now we are waiting for the last small chisel citizens with a possible public tenant that hopefully will put the last pieces in place. Page 38. We are in the first phase of the commercial project at Refinery 3 in Lund. The old tenants are moving out, and our preparation and planning for the building base continues. We invest to SEK140,000,000 in 5,800 square meters line offices with an industrial touch. And The place for that is just beside the central station. Yield on cost, approximately 6%, which also is in line with what we back from our normal average project in offices, 6% yield on cost and we can when we can, of course, a bit higher. And a short update in future investment. Page 40. We continue regarding the project Collison 7 and Vossraaliningen 15 in Helsinkiborg and Post Solnit 1 Phase 2 and Iddion Poit in Lund. Selling plan is in place and all these projects. And we can At least one of them, we have very interesting discussions at this very moment. It's important for us that we can create opportunities in many places so that we can be ready. And here at the Right, you can also see a glimpse of the final design of Sienet in Lund. That is the place where Brightens will concentrate in the future at the Antorje. On Page 41, Black Hornet 1 in Hylia, the project that we now call Vista. Procurement is ongoing, and we are planning to start the first phase with 400 parking spaces and a great sport hub in 2021. It's a new unique opportunity to offer both good parking and direct access to the train station for both Kuketan V and Lekkonet 1. Page 42, Ljermund, the largest and next development area in Malvern. We have all seen this picture for a long time as things are progressing. But as said before, patience is a special kind of skill. Now the municipality of Malmo has put in more resources in all the 4 zoning plant processes that we have ongoing in this area, and that is at least a hope for action. Our first opportunity with a new zoning plan in this area is at Page 40 3, Smarkkarean, where we at least will be able to produce somewhere between 10000,013,000 square meters offices in this first project. The Lhamdan in the city center of Malmo has our highest focus in a long term development perspective. And Page 44, This is Channel 1, just at the entrance to the Dokan area. We have applied for planning permission some time ago. As now at least we have been promised a time schedule for that this spring. So a plan of a plan is also a start. Let's summarize. Growth and increased results despite challenging circumstances. We have seen positive net letting in all four quarters 2020, stronger balance sheet than ever, and we continue our focus, both increasing the project portfolio, but also finding new investment opportunities and delivering in our ongoing projects and, of course, also continue to invest in existing portfolio. 1 year ago, when we presented our full year 2019 at Place and Stockholm, We couldn't imagine that something ever could happen that could prevent us from seeing you all at place this year. But we have all adapted and we find ways to solve what arise. And we will continue with that as long as it takes. But even if we can cope, we are really longing to see you live soon. So now we are open for questions. Thank you. Our First question comes from the line of Tobias Kai of ABG. Please go ahead. Your line is open. Yes. Thank you and good morning. I would like to start to ask about the occupancy rate. It fell almost 3 percentage points during 2020. Are there some specific larger premises That has been vacant? Or is it more like many smaller changes that explains the increase? I would say that we have, for example, Spadovant 15 here in Malmo, which come into a project phase. That is a part of the vacancy. We have Neagascen Total 4 in Lund, where AXIS had a part of that waiting for their own project to be finished. Terminal 1 in Helsinki, of course, where we have some spaces. And of course, the projects that I the projects that I mentioned, Boschosteth and Tractorsen, where we chosen to empty these spaces. So The most part of that is pieces put together that will give us a better position in the future, but we have to make some refurbishment in these projects. So we have taken the opportunity to empty these buildings now. And based on known determinations and signed leases, do you think that the Capense rate will continue to decline in 2021? Or do you expect a stabilization or a recovery? Recovery. Of course, we don't see this we don't have Any new Sverdrup 15, for example, is filling up now. And We had one project in we're building in healthy wall processing in Elva, which we also have good discussion on, but it was a quite large progresses. So And the recovery is already in Q1? Or is it later on during 2021? Hard to predict exactly when tenants move in, but and we won't fill them up all at once, of course. But during 2021, of course, things will happen. And do you see any signs of lower rent levels due to the higher vacancies? No. We don't see that nor in the office side or in the logistic and production. The rent levels continue to rise a bit, but in a slower tempo. And regarding your balance sheet, your net LTV has declined by some 3.5% in 1 year and almost 6% in 2 years. Do you intend to keep the lower leverage? Or do you see opportunities of being more active in terms of acquisitions? I'd say that we are keen to look at investment opportunities or acquisition opportunities, And we feel that with the current balance sheet, we have the opportunity to seize such opportunities if they arise. So that is, of course, the ambition. And if you're looking at acquisitions, what kind of yield should we expect that you can be able to buy at? Can you Can you buy offices at some 5% net initial yields without diluting the quality of the portfolio? That is very tricky to answer. I mean, Yes. We I'd say you can't really answer that. I mean, we look at acquisition opportunities basically all the time, and we do it in all our four Different submarkets. And we'll just see Which opportunities will arise and what we feel is an attractive price to actually pay. And regarding your logistics, you value at 6.8% net initial yield, while you divested at some 200 basis point lower yield. Did you sell the best part of the portfolio? And is the remaining portfolio at a much lower quality? I would say the opposite. And it's also I mean, if you look at the table in the report on I believe it's on Page 10, the number you relate to is 6.8%. That is not completely comparable to the valuation yield in the portfolio because That basically relates to a certain moment in time when it comes to what the properties are booked at and which expected Operating surplus those properties actually generate. When you value the properties, You look you're more forward looking, looking at normally a 5 year cash flow forecast and then you Good evaluation yield on the terminal value, making assumptions about long term vacancies, etcetera. So I mean, it's not completely comparable. So you're saying that we should expect that the income from that portfolio should decline? Why? Since you said the reason for the high yield In the table is that the it's because of the current situation, while when you look at the long term Development, that's how you get the valuation yield. But we don't expect the running yield to go down. Well, the running yield Could go down if the valuation changes. Okay. That's all for me. Thank you. Thank you. Our next question comes from the line of Markus Henriksen of Pareto Securities. Please go ahead. Your line is open. Good morning. Arvid and Nudica. Ursula and Pembinaalen, did they contribute anything in Q4 2020? You mean the rental income or what's to Yes, exactly. Because in the last report, it was the completion in Q4 and it was moved now into Q1. So I guess it's because of the remaining vacancies. But did it I think the rent I think the P and L here in Q4? As the rental starts to be paid in Q1. Okay. So no For the December, we have some tenants moving in, in December. So some brands there. Very slim slightly, but very limited. Yes. Okay. Could you also share some insights on the delta in rental levels between your current Portfolio and then what you're currently tendering to tenants and if we have some geographical and property segment differences that you experience? I'd say that the rent levels, as shown in the like for like number of the rental value. Rents are moving upwards, but at a rather slow pace or slightly slower pace than previously. But we don't see in our tenant discussions, any pressure on rents from what we saw beginning of 2020. And that basically goes for all segments. Okay. So there is still like This and reversion potential in the expiring leases that we have in 2021 2022. Well, I think we continue to expect us to be able to increase rents. But as we've stated many times before, I mean, The changes in the rent levels in our markets is normally and over time smaller than in, for example, what we've seen over the past 5 years in the Stockholm market. So we're continuing to expect a positive development, But not at a very rapid pace. Thanks. And then my last Question, what kind of rental level do you hope to get in your new project now in Hilli? We saw Kung Sleerden mention a new lease of I think it was SEK 2,960 per square meter. What do you expect for Kultepepper? We don't expect that as standard for the whole building. I would say that in our calculations, we have 2,700. But of course, we expect more in some areas. But we have and that's the rent level today. So that depends on when the lease are negotiated, of course, but a bit lower than currently than expected, I would say. Yes. I guess they mentioned the Top rent in that property. Last one there. What's your average rental level now in Hilla in your current premises? I would say approximately 2,600, without any calculations behind that, but somewhere that is there. Thank you. That was my question. Thank you. Thank you. And our next question comes from the line of Erik Granstrom of Carnegie. Please go ahead. Your line is open. Thank you very much. Good morning. I have two questions. 1, regarding investments for 2021, you managed to invest about SEK 1,300,000,000 in 2020. What's your expectation For 2021 given your project portfolio? Well, I expect us to be above SEK 1,000,000,000 but not at any record level like 2019, but we will continue in a good pace, I think. But I don't have any exact figure. But do you think that you can actually beat the 2020 figure? Or is the 2020 level sort of acceptable in your view? It's definitely exactly. All right. Thank you. And then my last question was actually regarding The dividend, is there any part of the dividend that is related to the divestment that you made towards the end of the year? Our dividend policy states that we shall basically look at the income from property management And take into account realized profits from divestments, apply full tax on the sum of those 2 and distribute approximately 50%. The discussion regarding dividends also tries to take into account A predictability and the possibility of year by year increasing the dividends. So the dividend proposal is Not only a mathematical function of the factors which I mentioned. Okay. Sorry. Yes. I believe that your answer to the question is yes. Is that correct, the understood? Sorry for using many words. It is part of your dividend policy because the reason why I asked is because if we look at the running results and just apply the 22%, You would be up towards 60%, which is high for BNB employees historically. And that's why I figured that That's right. You also take into account the realized gains, but also the fact that this is a point From where I assume Vielboys would not like to lower its dividend going forward. That's a correct assumption. Okay. Good. Thank you very much. Those were my questions. Thank you. Thank you. And we have one further question in the queue so far. It's from the line of Max Numo of Kempen. Please go ahead. Your line is open. Thanks very much for the presentation. I think most of my questions have probably been asked there. But just one last one, if I can, on Some of the unexpected costs that you talked about in 20 Q4, particularly around rebate. I know it's Difficult question to answer, but how do you see that progressing, particularly in the early part of this year? Do you think that there will be more in the way of rebasing you need to give going forward and what the impact will be on earnings, of course. Thanks. Well, as I mentioned going into Q4. We did not expect the situation develop to develop as it actually did. And what we see in our tenant discussions currently is that Discounts should not be at the same magnitude as they were in Q4. I think it feels pretty hard to say that we won't needs to give any discounts during 2021. Looking at how the pandemic developed over the year 2020 and its unpredictability. But we don't expect the same numbers in Q1 or Q2. And but how the pandemic evolves, we'll just have to see. It hit this region a bit harder in Q4 than expected. And we have Also, some of these discounts were given for solving the situation for a long term perspective with some of our tenants. So I think, as I will mention, we won't be at the same level from now on. Okay. Thanks. That's helpful. Thank you. Thank you. Once again, if there are any I have actually received a question via e mail here. And the question relates to how much of the property value change in Q4 relates to the divestment to Blackstone. And the answer is that we took the value gain from that Divestment agreement already in the Q3 report. So the Q4 value change does not relate to the Blackstone Divestment. And in a 2nd e mail here. I have a question regarding how is net lettings excluding projects. Are much of the net lettings projects and how are like for like performing? The answer to that question is really that we in the net letting, we do not separate our new projects. And it's, of course, the case that we have for so many years been able to show a positive net Letting all quarters, excluding 1. It's, of course, due to the fact that we do Create new projects. And without that, it would, of course, be impossible to have positive net letting each and every quarter. But we do not separate that number. So I cannot be specific in the answer, unfortunately. And there's an additional question here. Both Grafenadrieth III and Pulp Basin V are large developments with 0 occupancy. Are you planning for more developments on speculation? How are you Going about starting thinking planning was starting with 0 occupancy rate. How do you use pre letting requirements? I would say that we look into every situation. In Hillier, we have no occupancy. We have no vacancy. We have no vacancy. And we have to be able to offer the market something. And 2023 is quite far away in time schedule even for larger tenants. So it's important that we start producing this project to be able to offer that to the market. And Raffa Andresjeet in Lund is a kind of a special piece, a very interesting one. We have good discussions there. So We already know that we will fill that up. So we have to look at the location, the situation around it and what this product will provide the market with, and that gives us our guideline if it's possible to start without any signed leases. And we will continue to act like that in a very responsible way, of course, but we have to, all the time, be able to offer the market new premises. And the last question that I have via email here is the 10% share buyback program proposed to the AGM, what are the plans for this? And the answer is that we have The board has asked for this mandate from the AGM each and every year for many, many years. We've not used the possibility to buy back shares for the past 12, 13 years. But the board feels that it is Beneficial for the company and in the end for the shareholders to have this opportunity if a certain situation would arise. So I have no further questions via e mail. Do you have anything more via phone? We've had one further question come through on the phone lines. That's from the line of Alex Olson. Please go ahead. Your line is open. Hello. Prior to your presentation, I was looking through your earlier reports. And in your annual report from last This year, you talk about the possibility of a super region between Hamburg and Malte Copenhagen due to the Feynman Belt The connection and the possible MetroLine. Looking at this and your new acquisitions, does this increase Your interest in Copenhagen and are the new areas of Copenhagen that will become interesting to you? And are you taking this position right now as To invest more in that area due to the new connection that is supposed to be ready by 2028? Yes, that's a possibility. We definitely think that Copenhagen is an important part of this of our portfolio. We've got to see that we can increase our value there. So but I think we will have opportunities both on the Danish and the Swedish side. And in what timing that will come, the future will tell. Okay. Great. And do you already now see a possibility for new areas of Copenhagen that will be There will be increasing interest? At the moment, we mainly focus on the areas that We already have a significant part of because that's a very important factor for us, but we are able to concentrate our portfolios. That's a very good thing for our tenants to be able to increase their and make changes in the areas. So it's not like that we, according to the string collaboration, have pointed out in the new geographical areas in the Copenhagen area that we will invest more in. We think that we have chosen really good locations, and we keep on focusing on them. But of course, no, no. Great. That was my question. Thank you. Thank you. And there seems to be no further questions from the phones at this time. Okay. I have one more question via the web here. That relates to our divestment to Blackstone. Logistics valuation uplift was taken, but has a read across to the wider portfolio also been applied It's higher quality. And you could say that to some extent, The valuation in the portfolio that we sold to Blackstone has affected valuation of logistics properties. But you should also bear in mind that the valuations, According to IFRS, need to exclude any portfolio premiums, which potentially could have been paid or which Probably were paid by Blackstone when they when we agreed on that price. So the valuations paid by Blackstone would not by our external appraisers if fully taken into account when looking at our existing or the remaining logistics portfolio. I have no further questions in my inbox. Okay. And there are still no further questions from the line at this time. Okay. So then thank you for today. And of course, we're you're welcome with questions in other media afterwards. Thank you very much, everyone.