Welcome to the presentation of Wihlborgs nine-month report 2026. Even if many uncertainties in the world continue, the glimpses and ray of light we have seen from time to time start shining brighter and brighter in our region. It was many years since the portfolio of ongoing discussion was as long and good as it is today. Even if the vacancy will continue up at least one more year as a result from acquisition and adding on new areas, the operating surplus and income from property management continue to increase in a way that I am proud of. We will not be the only one deciding the time schedule of necessary decisions on new leases, but my best estimate is that we have passed the apex on the more challenging time. The buzz of what is going on definitely gives that as a fact.
If not, we are prepared for that as well. Let us start with the Q3 report, and in the end, we will also give some notifications about what we see ahead with the benefits from a larger portfolio. Let us remember that it might look like we have acquired 95 properties, 400 tenants, and 48 employees. In fact, we have acquired a market position that is unbeatable. We start with a summary of Q3 2026. Rental income up 5% compared to a year ago. Operating surplus +7%. Income for property management +6%. Net letting negative at -SEK 27 million. Also important that the number of discussions and possibilities ahead are higher than we have seen in many years. Market rents as well as rental income in like-for-like portfolio continue to develop positively. Net debt- to- EBITDA at 10.6x . Good access to financing.
The acquisition of 95 properties from Castellum at a value of SEK 13.3 billion was completed on October 1st. With some more figures on that for the full period, and here we also find some records. The rental income up 7% to SEK 3. 484 billion, a new record. The operating surplus +8% to SEK 2. 530 billion, also a record. Income for property management +8% to SEK 1. 604 billion, and a new record. The result for the period was SEK 1. 539 billion, corresponding to SEK 5.01 per share. EPRA NRV has increased by 9% to SEK 101.59 per share, adjusted for paid dividend. Another record. A comparison of the rental income first nine months 2025 and first nine months 2026. Indexation +SEK 33 million. Acquisition +SEK 68 million. Currency effect, -SEK 60 million. Additional charges, +SEK 27 million.
Completed project, new leases, and renegotiations, +SEK 130 million, which means that our core business is working well and worth pointing out these days. The things we do best, we will have the opportunity and obligation to do more of ahead of us. Positive numbers for rental growth, but negative net letting for the quarter, -SEK 27 million. New lettings for SEK 60 million and a higher level of termination than last year. Q3 normally starts slow and then picks up. We started quite okay, had a normal quiet period during vacation, and then the number of discussion has turned into a really good level. But several expected signings have been postponed a couple of months, and most of all, a large termination was signed a few weeks earlier than we expected. So everything is not slower, sometimes also quicker than necessary.
Worth mentioning regarding the large termination in Denmark is that it was expected in Q4, and we are prepared with two different possible tenants in discussion for the whole building. As mentioned, we have actually a longer list with high volume discussion than we have seen in many years. That is before we add on the prospect from the Castellum portfolio. I was positive in Q2 for the fall, and I am more positive now. The conclusion is that the fall has just started. Here are some of the tenants that we have signed new leases with during Q3. I especially want to mention Fortnox, who adds on a good volume to our project at Skrovet 6, as well as Yasen. NSVA at Hermes in Helsingborg is also very interesting.
All of them are examples of higher standard, higher rent per sq m, and project possibilities in existing buildings. Here we have the net letting in a historical perspective. Lettings in green, terminations in light blue, and dark blue stacks are the net letting. A decent volume of new lettings for Q3, but higher terminations for the quarter. The list of our 10 largest tenants in alphabetic order. Strong customers, and they contribute with 90% of our total rental income. Seven out of 10 are governmental tenants, and the public sector contributes with 22% of total rental income. Rental value as of October 1st, 2026, excluding the large transaction, is SEK 5. 260 billion per year, + 6.7%, and rental income, SEK 4. 597 billion, + 5%.
Strong figures, and this is an effect from a combination of different things, but the largest parts are new and renegotiated leases, as I mentioned earlier. Looking at the like-for-like figures, all the properties we owned a year ago, excluding projects, compared with outdated figures, we can see that rental value is up 2.5% and rental income is up 0.6%. For the full portfolio, this is another example of the fact that if we work with our properties, we can perform well above index. Here with examples from existing portfolio as Borrhuset in Malmö and Vätet in Lund, as well as new build like Posthornet in Lund. Changes in the market value of our properties. We started the year with SEK 64.414 billion in accordance with external valuation of 100% of our portfolio.
We have made acquisitions, which adds on SEK 534 million, investments SEK 1.458 billion, divestment -SEK 4 million, changes in valuation +SEK 49 million, and together with currency translations of SEK 657 million, that summarized to a value of SEK 67.108 billion. Valuation parameters are without changes since year-end, including assumed indexation of 1%. Very small changes in valuation.
The growth comes mainly from investments and the transaction we made in Copenhagen. Here is the long-term trend for portfolio growth from SEK 7 billion- SEK 67 billion in 20 years' time, and growth every year. These figures, the running yield, show how we actually perform in relation to the valuation. This is not the valuation yield. This is also figures excluding properties acquired October 1st. Overall, an occupancy rate of 89%, excluding project and land, with an operating surplus of SEK 3.403 billion, which gives a running yield of 5.4%.
Fully let, the portfolio would give a running yield of 6.3%. In the office portfolio, the market value is SEK 53.655 billion, with an occupancy rate of 89%. 88% in Malmö, 89% in Helsingborg, 88% in Lund, and 92% in Copenhagen. The operating surplus from offices summarized to SEK 2.831 billion and a running yield of 5.3%. 6.1% fully let. Just small changes since last quarter. In Q2, these figures were affected by moving our project Bläckhornet and Posthornet from being classified as projects to the running portfolio. In Helsingborg, the occupancy overall for offices are slightly down, but not in the city center where the figures continue to pick up. That is actually the fact also for Hyllie in Malmö, if we look at the like-for-like portfolio. Higher occupancy today than a year ago, but not at levels that we are satisfied with, of course.
The logistic production portfolio has a value of SEK 9,460 billion. 93% occupancy in Malmö, 79% in Helsingborg, 94% in Lund, and 99% in Copenhagen. In all, 86% occupancy with a running yield of 6%. 7.3% fully let. Parts of the portfolio in Helsingborg continues to be challenging in a shorter perspective when it comes to occupancy. It is the southern parts in the city, and they will in time be transformed to more housing.
The harbor will move, et cetera, which affects our portfolio in the area. But in time, the city will continue to develop well. The development of our total portfolio's running yield, 5.4%, still brings stability, not least since the portfolio overall has a high quality and good location. An increase of the running yield since 2021, but the vacancy has a negative impact, and we aim to turn that around in line with improvements of the market.
Our position in the market has strengthened significantly since October 1st, but we will come back to that. So what about the market? The world outside the Nordics continue to be challenging in different ways, but in our own market, many things point in the right direction. The economic recovery in Western Skåne has gained significant momentum, and the regional unemployment decrease at a faster rate than in other Swedish metropolitan areas. Supported also by higher needs in the Copenhagen area, of course. This is our catalog of our value and properties in our four cities and Q3. 39% of the value in Malmö, 22% in Helsingborg, 17% in Lund, and 22% in Copenhagen. We are totally convinced that we have chosen the right places for our business. The region continues to attract attention investments from example, Saab, SAS, and the logistic sector.
It will continue to be positive for the region, for Wihlborgs, and for Sweden. Some sustainability highlights. We are now ranked number three out of 21 peers in GRESB and show positive progress both for measurement in property management as well as for project development. Our project at Vätet 1 for Arm is the first project in Sweden certificated with the Miljöbyggnad Refurbishment 4.0 and NollCO2 certification for refurbishment. Our impact from Scope 1 and Scope 2 have decreased in a very good way in Q3, and largest impact from our less refrigerant loss from cooling machines. That shows that our focus on reducing conventional refrigerant really makes a difference. Time for financials. Over to you, Arvid.
Thank you very much, Ulrika, and good morning, everyone. Looking at the P&L for the quarter separately, we can see that rental income increased by 5% to SEK 1.160 billion. The operating surplus increased by 7% to SEK 848 million, which means that the surplus margin improved somewhat to 73.1% in the quarter. Income from property management increased by 6% to SEK 527 million. As you can note, there was an increase in interest expense, and this was primarily due to an increase in CIBOR. As you may have noted, three-month CIBOR has increased from around 2.0% at the start of the year to almost 2.6% now, while three-month STIBOR has basically been flat during the same period. Property valuations were more or less flat at +SEK 21 million in the quarter.
The changes in market rates meant positive valuation changes in the derivatives portfolio of SEK 350 million, and that makes all in all a profit for the period of SEK 689 million. The next slide shows the balance sheets in September in comparison with the status 12 months previously. Investment properties amounted to SEK 67.1 billion, up SEK 3.6 billion in 12 months or 6%. Equities stood at SEK 24.9 billion, up SEK 1.4 billion, also an increase of 6%, and borrowings amounted to SEK 35.2 billion, up SEK 2 billion versus end Q3 2025.
Translating the previous slides into key figures, you can see that the equity ratio was 36.2% end Q3, slightly stronger than end Q2, but the same number as end Q3 2025. LTV stood at 52.5%, roughly in line with last year and also here a little bit stronger than end Q2. Interest cover ratio was strong at 2.9x .
The EPRA NRV per share was SEK 101.59, up 9% versus 12 months previously if you adjust for paid dividend. The EPRA EPS was up 10% to SEK 4.78. This graph shows the EPRA NRV since 2009. Over that time period, the average annual growth of EPRA NRV has been 14%, adjusted for paid dividend. We have set ourselves some financial targets relating to financial stability. The loan-to-value shall not exceed 60%, and in the graph on the bottom right, you can see the development since 2011. From the current level of 52.5%, this number will increase to around 59% due to the completed acquisition in October.
Reduction of the LTV to around 55% will primarily be driven by our cash flow generation, but we will of course also review the composition of our portfolio to focus on properties where our cluster strategy creates the greatest value. The equity assets ratio shall be no less than 30% and currently stands at 36.2%. The interest cover ratio is now 2.9x , which we think is a strong number, although not, of course, to be compared with a situation when interest rates were zero a few years back. Another relevant metric for describing financial stability is net debt- to- EBITDA. As you can see on the graph, Wihlborgs has had a stable development for this number since 2006. Currently, we are at 10.6x . On this slide, you can see our sources of financing as of end September. Total borrowings of SEK 35.2 billion.
41% of our loans come from bilateral bank agreements with Nordic banks, 36% from Danish mortgage loans, and 23% from the bond market. Despite the geopolitical turbulence and a shaky stock market for the real estate industry, we would claim that access to financing is still good, both from banks and from the bond market. Here you can see the details of our loan portfolio. The average interest rate is now 3.37%, up from 3.25% in the previous quarter. As mentioned when I commented on the P&L for the quarter, the largest part of that increase comes from an increase in CIBOR. The average fixed interest period is 2.5 years, unchanged from last quarter and in line with our risk management policy. The average loan maturity is an unchanged 4.9 years.
This slide shows the development of these numbers over the last five years. As you can see, there is no drama in this development. A little bit more drama in the graph on this slide. It shows our available funds as of end September. The very large number, SEK 17 billion, is of course explained by the facility in place to pay for the SEK 13 billion acquisition, which was completed on October 1st. Adjusted for that, the available funds were a more normal SEK 4 billion. With that, I hand back the word to you, Ulrika.
Thank you. An update on our investments in progress and a quick overview over some of our largest projects. During the period, we have invested SEK 1.458 billion and it remains SEK 1.488 billion to invest in approved projects. We continue to expect 6% or a bit above 6% yield on cost for new built offices and 7% or a bit above for industrial, and a good mix of refurbishment and new built in the portfolio. Some examples. A new project from Q2 at Vätet 1 for a company in the automotive tech industry, just beside the project we have completed for Arm. We invest SEK 82 million and get 7.4% yield on cost, including the value of the property and including maintenance, 13% yield in total if we exclude the value of the property. Completion in Q1 2027.
The large project at Amfitrite 1 in Malmö for Malmö University is running well in accordance with plan. A bit above 20,000 sq m for Malmö University in a 10-year lease. Investment, SEK 1.130 billion and completion is planned to late Q4 2027. Discussion continues regarding a possible prolonging of the lease to 20 years. At Kranen 7 in Malmö, we will invest approximately SEK 136 million, 100% pre-let to a preschool for the municipality. 2,900 sq m. Completion is expected to Q3 2027. Public procurement act is completed, and work has started well. At Skrovet 6 in Malmö, we refurbish 11,000 sq m. Now 90% pre-let and moving in has just started but will continue until Q2 2027. Let us remember that this is a building that Saab left in January this year, so a very quick turnaround.
At Musköten 20 in Helsingborg, we have just started a new project where we invest for our tenant, MilDef. A combination of refurbishment of an existing vacant building of 2,400 sq m. We have new built 3,400 sq m and adding on the existing lease of 4,400 sq m. So in total, 10,200 sq m and SEK 97 million investment, including value of the land. Yield on cost 7.2% and completion in Q3 2027. At Sudkollan 1, Lund has moved in, and Lund University will move in now in Q4. Well-used land area and long leases. In total, 14,500 sq m investment, SEK 260 million, and yield on cost approximately 9%. Now let's talk about the large acquisition with completion October 1st.
Since the competition authorities regulation did not allow us to obtain the detailed information prior to completion of the transaction, completion as an expression might be a bit odd. Now we have a six-month period to get all the data in place, but we have already taken a lot of actions to make the transformation as smooth and quick as possible. The organization that was included in the transaction has, during these first weeks, been downsized by approximately 30%. We work a bit differently at Wihlborgs, and it's our ambition to be very quick in adjusting operations so that the whole company works in the same way, at least from mid-November. The cost for adjusting the organization is estimated to SEK 10 million in Q4 as a one-off, and we will save approximately SEK 20 million per year.
Our focus is also to be quick and find the best business opportunities in a mixed property and customer portfolio. These discussions are already in full action, thanks to very dedicated employees from both sides. In total, 95 properties, 635,000 sq m, and agreed property value of SEK 13.3 billion, and a mix between offices and industrial. We will get a higher operating surplus and higher income from property management from day one, an initial running yield of 5.3%, and a mix of properties very much in line with our own portfolio. On top of better earnings, the portfolio also includes a higher vacancy, and we will use that as an upside ahead. Counting vacancy as an advantage can only be done under certain circumstances. Quality and micro location for the properties must be right.
The macro location, there must be a potential for growing needs in the market as such, but most important of all, your own market position. We have bought an unbeatable market position, and that will serve us and our tenants well ahead. If we start to look at Malmö, here is the summary of the largest commercial property owners in Malmö before the acquisition and after. We had a good position before, and that has been an advantage. But now we can gear up our momentum. In Lund, the shift is somewhat less pronounced. We were already significantly larger than our industry peers to begin with. This has historically been a benefit both for us and our tenants. But now we increase both offices and land for development in the most attractive area. Finally, in Helsingborg, the shift in offices is significant.
Only smaller property owners in the area can compete, and no one is close to be able to offer the flexibility that we can. In the industrial segment, we increase in the attractive Berga and Södra Väla areas. If we add on the acquired properties to our property table from our Q3 report, it will summarize like this. The rental notice for Q4 2026 are used as income, and costs are based on historical data. That would give us an operating surplus of close to SEK 4.2 billion, and still a running yield of 5.2%. Here is also including the projects, of course, from the Castellum portfolio. Here will follow some maps showing the impact of our black existing properties, and the red ones are the acquired ones. This is the Malmö overview. Zooming in at Malmö City. Outer Malmö with Fosie in focus. Malmö Hyllie.
The overview of Lund. Zooming in at the Ideon area. Here is Gastelyckan in Lund. Western parts of Lund. The overview of Helsingborg. The areas of Berga and Södra Väla. City of Helsingborg. These maps can be looked at in our presentation afterwards, so see them as an appendix. With that, we summarize the presentation. Continued growth in revenues and profit. Still elevated vacancies, but improving activity among potential tenants. Completion of the SEK 13 billion acquisition, October 1st. Rapid integration in progress. We describe the acquisition as an excellent strategic fit, and not least, it gives immediate positive effect on operating surplus, and of course, also a long-term potential in the market. With that, we are open for questions.
If you wish to ask a question, please dial pound key five on your telephone keypad to enter the queue. The next question comes from Staffan Bülow from SB1 Markets. Please go ahead.
Good morning, and thank you for the presentation. I have a couple of questions, starting with the first. Now when the Castellum deal is closed, can you give some flavor on the ambition to decrease LTV to 55% over the next two years? If you were to sell, what kind of assets are you looking to sell? Is it fully developed, certain geographies, certain property segments, et cetera?
First of all, we will continue to focus on our cash flow generation, of course. But as always, when you buy a large portfolio, there are some areas that maybe not suit us best. To focus on our strongest hubs where we can do the best results for our tenants, that will continue to be our focus. But I think we will find also some areas and some properties that might be better for another solution. So that process has, of course, started.
Can you perhaps comment on how large the share of the portfolio is in your hubs?
Oh, as you saw in the maps, a very large part of it, almost all of it is hitting the best areas in our portfolio and completing very well.
Okay. Yeah.
that is the part of why it is so strategic. Well
Mm. Okay. Thank you. Moving on to central admin. If I understand correctly, headcount will increase by 48 employees following the transaction. Could you give some guidance of what you expect sort of normalized annual central administering cost to be following the acquisition?
Correct. It was 48 or 49 employees that come along with the portfolio, and we have reduced that by 30% until now. So we have find a way to reduce cost for staff with approximately SEK 20 million per year already, and that is being fulfilled now during Q4.
Okay. Thank you.
But to clarify, the staff that we are taking over is to a very limited degree central administrative functions.
Oh, okay. That makes sense. Then a question on the occupancy in the Castellum portfolio. I think it declined from 85% to 83% from signing and closing. Were you aware of this increase and could you provide some color on the underlying drivers here?
We were aware that things can happen during this time. For example, the boost moving out during this period, so that has affected the numbers. Of course, when you give signals to people that something is going to happen, maybe you do not really have the momentum to continue at the same pace that you do in a normal situation. So things can happen during this time between the agreement and the transaction day. Of course, we were aware of that. But we also see that we have signed leases in the Castellum portfolio that will add on a better volume ahead. But we do not have that numbers in total. So the numbers you see in this sheet is for the rent roll for Q4 2026, and that is a fact. We know that.
We do not all know all the additional normal income, but we know what has been notified for Q4, and we have not added on income from new leases signed that will be entered during 2027. So that is not including in the numbers today.
Okay. Thank you. One final question. The Danish termination behind the negative SEK 27 million net letting, could you provide some color on the rental value of that large termination?
Yes. It is pretty much in line with the total negative. It is a large property, where Schneider was the only single-tenant property. As I tried to point out, we were aware that they wanted to leave. So we have already two ongoing discussions with possible tenants for the whole property. We had a possibility that these would meet each other in the Q4. But we got the termination earlier, so that is what is behind.
Okay. Yeah. Thank you. Understood. Thank you for taking all my questions.
Thank you.
Thank you.
The next question comes from Oscar Lindquist from ABG Sundal Collier. Please go ahead.
Good morning. Just a follow-up question on the lettings or net lettings. If we disregard the Danish letting discussion and your comments on the activity in the letting market, is that volume increase driven by like for like, or is it driven by the Castellum acquisition?
The net letting, it is not including any activity from the Castellum portfolio.
I mean forward-looking.
Are you forward-looking?
Yeah.
Did you get the question?
Yes. You should interpret our comment on the activity regarding letting discussions as relating to our existing portfolio. It is a little bit too early to have very qualitatively good comments on the ongoing discussions regarding the newly acquired portfolio.
But correct. My comment on tenant discussion is without adding on all the ongoing discussions with the Castellum portfolio, of course. But there is good activities there as well. But I think that maybe we have a higher tempo in the original Wihlborgs portfolio.
Yes. How much of that do you think you can materialize now in Q4?
Always tricky to say, but some of it, I am certain that it will be decided during Q4.
Okay, thank you. Then on Schneider moving out, when are they leaving? Do you expect that letting to be fully reversed in Q4?
They will move out end Q1 2027, so last of March 2027. At least I could say that we have a good opportunity to find a solution for long-term activity at this property in Q4. I can't say the date for decision, of course, but we have two ongoing discussions with different tenants who are interested of the whole property. Additional on that, of course, we had already looked at the possibility to split it down to a multi-tenant facility. So I have good faith in this property. But if the solution will be concluded in Q4 or a bit longer, that's impossible to say at the moment.
Okay. Then one final question now going into Q4 on sort of the bridge financing effect. Could you guide on either what effect you think this will have on the average paid interest rate or the all-in funding cost of the acquisition?
What I can say, as we've stated before, the bridge financing facilities is in place, and initially the margin that we're paying on the bridge financing facility is well below the average margin that we have on our bank debt. But the way these bridge financing facilities are constructed is that on a quarterly basis, the margin of the facility increases. So initially, it will average down the margin that we're paying, but in time, that will change.
Okay. Thanks. That's all from me.
Thank you.
Thank you.
The next question comes from Jan Ihrfelt from Kepler Cheuvreux. Please go ahead.
Okay, good morning. Just have one question, and that is a follow-up question, more or less for the former speaker. Could you maybe quantify, let's say, the extraordinary effects on the financial net in the third quarter due to the upcoming acquisition on October 1st?
The extra effect on the financial net in the third quarter was only a few million, like SEK 2 million, SEK 3 million or something. It was basically a commitment fee of the facility.
Okay. That is enough. Thanks.
The next question comes from John Vuong from Van Lanschot Kempen. Please go ahead.
Hi, good morning. Just following up on the integration on the Castellum portfolio. I appreciate it is still early times, I mean, you are giving yourself six months. But what are your first thoughts after three weeks besides the downsizing that you have done? Are you seeing any other low-hanging fruits or synergies?
For example, when we add on the tenant ongoing discussions from both the original Wihlborgs portfolio and the Castellum portfolio, we see immediate possibilities for tenants that are in discussion and do not really find the best solution, then we can move them to the other part of the portfolio. I am eager to find the first lease signed between these two portfolios. These discussion has already really started. Of course, two organizations have a bit different kind of contact areas where they are best. When we add on these skills to the same work, it will give a positive effect also. I think we have, in these few days, succeeded in a very good way to give a new momentum also for new leases and new discussions.
Maybe on that, to what relative size do you actually add new leasing prospects in terms of, say, tenants that you did not talk to before?
I cannot quantify that in a way. But if we take some kind of numbers, we know that the new portfolio includes 400 different tenants. They will have needs, and we see how effectively we have been able to work with that in the Wihlborgs portfolio before. By adding on a great volume to that we can achieve more. But I cannot give you any numbers on how much the ongoing discussion volume would be. My comment regarding a good volume, a better volume now than we have seen in many years, that is only in the Wihlborgs portfolio. It will of course, be even better when we add on the discussions ongoing in the Castellum portfolio.
Okay. That is fine. Just on that last comment, when you talk about leasing discussions for the existing portfolio, are you talking about filling up existing vacancy? Does that require any CapEx in terms of renovation projects, or is it just basic touch-ups that you are seeing?
I would say that the quality of the Castellum portfolio is good. And of course, there are examples of things that will need some more work and some more CapEx. But otherwise, the way we do things in Wihlborgs, I expect us to be able to do the same thing in the Castellum portfolio. Of course, we could add on something, a bit of a CapEx, but also get a higher rent than the former tenants paid. So it is not any dramatic shift in that. It is just a larger portfolio and larger possibilities, and we will continue to do the way that we have been successful before.
Sorry, I just meant the existing portfolio without the Castellum portfolio. You mentioned that leasing discussions there are also increased. Is that for existing buildings or is that also for new projects?
Mainly for existing buildings. And that will be the same kind of situation that we had before, where we add on something, but it is not any dramatic large project where we have to tear everything out and start over again. More of the volume of discussions have been increased in the normal part of the portfolio, as said.
Okay, clear. Thank you.
The next question comes from Lars Norrby from SEB. Please go ahead.
Good morning. A couple of add-on questions. First of all, on that Danish property where you are talking to two potential new tenants. If you manage to sign any of those contracts, would it require any type of significant CapEx delay in moving in, or can that come quite quickly?
If it will be one of the single possible tenants, then the CapEx will, of course, be much lower. If we should change it into a multi-tenant building, it will need some extra CapEx. Our best shot is to go for one of the two that needs the full property.
If I may add on. Since we have not signed any new lease, we do not know when a new tenant could move in. You can bear in mind that it is more common for a rapid move-in in the Danish market than it is in the Swedish market.
Got it. Second and final question regarding the financing of the Wihlborgs, the Castellum transaction, the SEK 13 billion. How have you acted when it comes to interest rate fixing? Is it at a similar level as you have in your total portfolio prior to that transaction or something about that?
We put in place an interest rate risk management policy back in 2018, and we think it has served us well. Also with this acquisition, we continue to follow the same interest rate risk management policy. Basically meaning that a certain proportion of interest maturities shall fall due during different timescales, zero to one years, one to two years, two to three years, et cetera. So we continue to work the same way with our interest rate hedging.
Okay. Thank you.
The next question comes from Tobias Kaj from Nordea. Please go ahead.
Good morning. Thank you. I would like to start to ask you regarding potential disposals. Did I understand it correct that you only look at divestments of properties which are outside of your strategic hub? Could you also consider to divest properties within those areas, more dry assets?
Absolutely. If it is something that we think that we might not be the best owner of tomorrow, of course, that is always a part of the strategy around the portfolio. So well-developed long-term tenants where we cannot add on much of our skill ahead. That is, of course, also a possibility.
Is it possible to say anything about how long those processes are? Is it likely that you could announce something orderly during this year in terms of divestments, and if so, how large volumes?
No, I cannot give you any details on that. As you are aware of, changing things in the portfolio can always take some time, and for us, it is better that these things will be done in a very good way. We have patience in this.
Regarding your bridge financing, how many quarters does it take until that will become more expensive than your existing bank financing?
Approximately four quarters.
Okay, do you need to get down below any certain LTV level before you are able to refinance the bridge until some more normal funding?
No.
One final question regarding your occupancy rate. We will see a bit of a decline as the Castellum portfolio is consolidated, based on the recent quarter's net letting activity. Should we expect to see a continued increase in vacancies due to that as well?
I think it's too early to say. We also have new leases coming into the portfolio, in 2027. Even more in the end of 2027, of course, but also, in Q1. I think it's a bit early to say. I think we see a good activity, and we have good leases coming in, which will meet some of the vacancy.
Okay. That's all from me. Thank you.
Thank you.
Thank you.
The next question comes from Erik Granström from DNB Carnegie. Please go ahead.
Thank you. Good morning. I have one question. It is regarding your comment about the vacancy rate. You stated that you expect it to continue to increase for at least one more year, due to the transaction and so forth. Given after the transaction with Castellum, what is the reason why you are expecting the vacancy to increase 12 months from now?
Oh, maybe I was a bit unclear on that. Sorry for that. It will increase when we include the Castellum portfolio, and that will stick with us for at least a year. Just so that we have to be a bit patient before we get the new momentum to turn around. I do not expect it to continue to increase during 12 months. Sorry, that was unclear.
Okay. Thank you. That was my question.
The next question comes from Viktor Hökenhammar from Danske Bank. Please go ahead.
Good morning, Ulrika and Arvid. Just one question left from my side as well. In your logistics and production portfolio, how do you assess the vacancy rate here? I think it is around 14%. Also if you have any comment on how it compares to the broader market.
Especially the southern parts of the Helsingborg city portfolio that have increased vacancy and that affect the portfolio. Most other areas are producing very well, and the vacancy we see there is more of a We have some terminations moving out, and that is more of just a period thing. But the southern parts of the Helsingborg portfolio, where we have to work with the more Actually, that area is more to seen as a development area, and that affect the numbers.
Okay, perfect. Very clear. Thank you.
There are no more questions at this time, so I hand the conference back to the speakers for any written question and closing comments.
Just double-check if we have any questions. Yes, we actually do. Sorry for not paying attention to that. First question, to drive occupancy higher in the acquired portfolio, will there be CapEx required? If yes, can you give some color?
We got almost the same question before. I do not expect higher CapEx in that kind of refurbishment and adding on qualities than we see in the other part of the portfolio. So pretty much in line with the same thing. Not the largest development, new large project thing. It is more adding on some flavor.
Another question, can you give some color on what sort of interest you foresee for the Castellum portfolio vacancy?
Same as we see from the rest of our portfolio since the products are very much in line with what we already have and in the same areas. I think the interest among tenants would be good.
There was another question regarding interest rate hedging, but we have already talked about that. No further questions via email.
Okay. By that, thank you for your attention. If you have any further question, please just contact us and we try to answer.
Thank you very much.
Thank you.