Fast. Balder

Interim / Quarterly Report • Jul 18, 2023

FASTIGHETS AB BALDER INTERIM REPORT

JANUARY-JUNE 2023

FASTIGHETS AB BALDER is a listed property company which shall meet the needs of different customer groups for residential properties and premises based on local support. Balder's property portfolio had a value of SEK 222.2 billion (206.5) as of 30 June 2023. The Balder share is listed on Nasdaq Stockholm, Large Cap.

• Profit from property management attributable to the parent company's shareholders amounted to SEK 3,099m (2,883), corresponding to an increase per share of 4% to SEK 2.69 (2.58).
• Long term net asset value amounted to SEK 91.12 per share (91.97).
• Rental income amounted to SEK 5,838m (5,057).
• Profit after tax attributable to the parent company's shareholders amounted to SEK –918m (8,717), corresponding to SEK –0.80 per share (7.79).

CONTENTS

The period in brief	3
Comments by the CEO	4
Forecast and current earning capacity	5
Income, costs and results	6–7
Property portfolio	8
Changes in property portfolio	9
Property development	10
Project tables	11–12
Customers	13
Financing	14–15
Sustainability	16
Associated companies	17

Other disclosures	18
Comprehensive income	19
Financial position	20
Cash flow	21
Segment information	22
Key ratios	23
Parent Company	24
The share and the owners	25
Derivation of key ratios	26–29
Definitions	30
Contact information, calendar	31

THE PERIOD IN BRIEF

Comparisons stated in parenthesis refer to the corresponding period of the previous year.

APRIL–JUNE 2023

• Rental income amounted to SEK 2,943m (2,550), of which the effect of changes in exchange rates amounted to SEK 91m (48).
• The economic occupancy rate was 96% (96).
• Net operating income amounted to SEK 2,201m (1,912), of which the effect of changes in exchange rates amounted to SEK 65m (37).
• The surplus ratio amounted to 75% (75).
• The profit from property management attributable to the parent company's shareholders increased by 3% to SEK 1,550m (1,501), representing SEK 1.34 per share (1.34).
• Unrealised changes in value of investment properties amounted to SEK –2,644m (2,243). The average yield requirement amounted to 4.8% (4.4), which is 0.1 percentage points higher compared to the first quarter.
• Changes in value of interest rate derivatives and option component convertible amounted to SEK 279m (513).
• Net profit after tax for the period amounted to SEK –1,292m (3,625).
• Net profit after tax for the period attributable to the parent company's shareholders amounted to SEK –867m (3,456), corresponding to SEK –0.75 per share (3.09).
• Long term net asset value amounted to SEK 91.12 per share (91.97).

JANUARY–JUNE 2023

• Rental income amounted to SEK 5,838m (5,057), of which the effect of changes in exchange rates amounted to SEK 181m (97).
• The economic occupancy rate was 96% (96).
• Net operating income amounted to SEK 4,299m (3,717), of which the effect of changes in exchange rates amounted to SEK 125m (73).
• The surplus ratio amounted to 74% (74).
• The profit from property management attributable to the parent company's shareholders increased by 7% to SEK 3,099m (2,883), representing an increase per share of 4% to SEK 2.69 (2.58).
• Unrealised changes in value of investment properties amounted to SEK –4,246m (5,587). The average yield requirement amounted to 4.8% (4.4), which is 0.2 percentage points higher compared to the year-end.
• Changes in value of interest rate derivatives and option component convertible amounted to SEK 104m (1,200).
• Net profit after tax for the period amounted to SEK –1,420m (9,500).
• Net profit after tax for the period attributable to the parent company's shareholders amounted to SEK –918m (8,717), corresponding to SEK –0.80 per share (7.79).
• Two development properties (2) were divested and recognised as income during the period. The profit from sales amounted to SEK 222m (24) including the portfolio's ongoing selling expenses.
• During the period, an investment was made in 5-year convertible debentures of just over SEK 5 billion, at an interest rate of 3.5%.

UNCHANGED FORECAST FOR 2023

For 2023, the profit from property management1), i.e. the profit before changes in value and tax, with the current property portfolio, acquisitions and divestments announced, and at current exchange rates, is expected to amount to SEK 6,200m. This forecast was announced in connection with the issuing of the year-end report for January–December 2022.

	2023	2022	2022	2021	2020	2019	2018	2017
	Jan-June	Jan-June	Jan-Dec	Jan-Dec	Jan-Dec	Jan-Dec	Jan-Dec	Jan-Dec
Rental income, SEKm	5,838	5,057	10,521	8,956	8,134	7,609	6,714	5,915
Profit from property management, SEKm 1)	3,099	2,883	6,139	5,543	4,244	4,023	3,304	2,804
Changes in value of investment properties, SEKm	–4,220	5,623	5,530	13,111	3,453	9,577	8,007	5,336
Changes in value of derivatives, SEKm	104	1,200	1,617	511	–141	–180	–34	144
Profit after tax, SEKm 1)	–918	8,717	10,175	18,508	6,641	8,958	9,308	7,118
Investment properties, SEKm	218,397	203,374	213,932	189,138	149,179	141,392	116,542	98,360
Development properties, SEKm	3,772	3,152	3,421	2,697	2,803	2,344	1,598	–
Data per share
Average number of shares, thousands	1,154,000	1,119,000	1,119,192	1,119,000	1,083,090	1,080,000	1,080,000	1,080,000
Profit after tax per share, SEK	–0.80	7.79	9.09	16.54	6.13	8.30	8.62	6.45
Profit from property management per share, SEK	2.69	2.58	5.48	4.95	3.92	3.73	3.06	2.46
Outstanding number of shares, thousands	1,154,000	1,119,000	1,154,000	1,119,000	1,119,000	1,080,000	1,080,000	1,080,000
Equity per share, SEK	77.23	77.49	78.16	69.35	52.02	45.38	37.17	28.98
Long-term net asset value per share (NAV), SEK	91.12	91.97	92.10	83.96	64.56	56.95	46.27	36.35
Share price on the closing date per share, SEK	39.36	49.01	48.52	108.63	71.48	72.20	42.00	36.57

1) Attributable to parent company's shareholders.

COMMENTS BY THE CEO

Dear shareholders,

First half of 2023, stable after all

The profit from property management attributable to the parent company's shareholders increased by 4% per share to SEK 2.69. For the second quarter, the profit from property management remained unchanged at SEK 1.34 per share compared with the previous year. Increasing the profit from property management per share over time is our single most important goal from a financial perspective. Compared with the same period last year, the net asset value per share and current earnings per share fell by 1% and 4% respectively. Comprehensive income for the first half of the year was slightly negative due to lower property values resulting from rising yield requirements.

Investments and divestments

As in the market in general, our level of activity regarding purchases and divestments has been low. We are focusing on completing existing projects and remain generally cautious when it comes to new construction starts. Over time, however, I believe that there will still be an opportunity to generate a good yield from our project and building rights portfolio.

Associated companies

As a Group, our associated companies report the same trend as Balder in general, i.e. stable profit from property management with a slight fall in property values due to heightened yield requirements.

Balder 18

This interim report sees Balder completing 18 years in its current form. The net asset value and the trend in the subscription/share price can be seen as of 30 June each year in the table below:

Financing

As always, we maintain a strong focus on financing, and the following are worth mentioning:

• Proportion of financing via the bond market has fallen from 64% during Q1 2022 to 49% as of Q2 2023.
• In Q2, repurchased bonds and bonds paid on maturity amounted to approximately SEK 10 billion.
• Reduced net debt in constant currency.

Perseverance

I believe that perseverance is a very important factor when it comes to building a company and investments in general. Right now, it feels particularly clear that perseverance is the key for us.

I and all co-responsibles are continuing to work hard as usual, and the results will come in time. The situation and the short-term economic prospects are gloomy at present, but in the long term the future looks bright and we are in the right place.

Erik Selin Chief Executive Officer

Year	Net asset value	Share price (2005 refers to subscription price)
2005	1.10	1.18
2006	1.85	2.22
2007	2.74	2.92
2008	3.91	1.86
2009	3.73	1.50
2010	4.43	2.75
2011	6.01	5.28
2012	7.48	5.22
2013	9.07	8.08
2014	11.80	15.08
2015	17.69	21.32
2016	28.23	35.48
2017	35.93	34.00
2018	41.09	38.97
2019	49.55	51.83
2020	59.16	59.18
2021	69.69	89.50
2022	91.97	49.01
2023	91.12	39.36

Average increase per year: Net asset value: 28% Share price: 22%

FORECAST AND CURRENT EARNING CAPACITY

UNCHANGED FORECAST FOR 2023

For 2023, the profit from property management1), i.e. the profit before changes in value and tax, with the current property portfolio, acquisitions and divestments announced, and at current exchange rates, is expected to amount to SEK 6,200m. This forecast was announced in connection with the issuing of the year-end report for January–December 2022.

CURRENT EARNING CAPACITY

Balder presents its earning capacity on a twelve-month basis in the table below. It is important to note that the current earning capacity should not be placed on a par with a forecast for the coming twelve months. The earning capacity does not contain, for example, an estimate of rental, vacancy, currency or interest rate changes.

Balder's income statement is also impacted by the development in the value of the property portfolio as well as future property acquisitions and/or property divestments. Additional items affecting the net profit are changes in value of derivatives. None of the above has been considered in the current earning capacity.

The earning capacity is based on the property portfolio's contracted rental income, estimated property costs during a normal year as well as administrative expenses.

The costs of the interest-bearing liabilities are based on the Group's average interest rate level including the effect of derivative instruments. Tax is calculated using the effective tax rate during each period.

CURRENT EARNING CAPACITY ON A TWELVE-MONTHS BASIS

SEKm	2023 30 June	2023 31 March	2022 31 Dec	2022 30 Sep	2022 30 June	2022 31 March	2021 31 Dec	2021 30 Sep	2021 30 June	2021 31 March	2020 31 Dec
Rental income	12,000	11,650	11,600	10,750	10,350	10,135	9,710	9,150	9,100	8,505	8,545
Property costs	–2,925	–2,800	–2,735	–2,565	–2,470	–2,445	–2,370	–2,230	–2,220	–2,210	–2,225
Net operating income	9,075	8,850	8,865	8,185	7,880	7,690	7,340	6,920	6,880	6,295	6,320
Surplus ratio, %	76%	76%	76 %	76 %	76 %	76 %	76 %	76 %	76 %	74 %	74 %
Management and administrative costs	–1,100	–1,050	–1,035	–1,000	–990	–980	–830	–780	–770	–720	–675
Profit from property management from associated companies	1,850	1,850	1,850	1,800	1,780	1,760	1,650	1,500	1,370	1,340	1,110
Operating profit	9,825	9,650	9,680	8,985	8,670	8,470	8,160	7,640	7,480	6,915	6,755
Net financial items, including ground rent	–3,600	–3,300	–2,900	–2,550	–2,220	–2,020	–1,750	–1,600	–1,600	–1,580	–1,450
Of which non-controlling interests	–410	–410	–560	–550	–580	–630	–630	–610	–605	–625	–630
Profit from property management 1)	5,815	5,940	6,220	5,885	5,870	5,820	5,780	5,430	5,275	4,710	4,675
Tax 2)	–1,200	–1,230	–1,305	–1,240	–1,250	–1,240	–1,230	–1,130	–1,085	–975	–970
Profit after tax	4,615	4,710	4,915	4,645	4,620	4,580	4,550	4,300	4,190	3,735	3,705
Profit from property management per share, SEK	5.04	5.15	5.39	5.26	5.25	5.20	5.17	4.85	4.71	4.21	4.18

1) Attributable to parent company's shareholders. 2) Refers primarily to deferred tax, which has no effect on cash flow.

In the current earning capacity as of 30 June 2023, the following exchange rates were used to translate foreign subsidiaries' income statement items.

EUR: 11.79 DKK: 1.58 NOK: 1.01 GBP: 13.72

INCOME, COSTS AND RESULTS

Profit from property management

Profit from property management for the period amounted to SEK 3,302m (3,167), of which the effect of exchange rate fluctuations amounted to SEK 38m (46). Profit from property management attributable to the parent company's shareholders amounted to SEK 3,099m (2,883), corresponding to an increase per share of 4% to SEK 2.69 (2.58). Profit from property management includes SEK 929m (903) in respect of associated companies.

Profit after tax

Net profit after tax for the period amounted to SEK –1,420m (9,500). Net profit after tax attributable to the parent company's shareholders amounted to SEK –918m (8,717), corresponding to SEK –0.80 per share (7.79). Profit before tax was impacted by unrealised changes in the value of investment properties of SEK –4,246m (5,587), realised changes in the value of investment properties of SEK 27m (36), net profit from the sale of development properties of SEK 222m (24), changes in value in interest rate derivatives and option component convertible of SEK 104m (1,200) and profit from participations in associated companies of SEK –216m (1,980).

Rental income

Rental income increased by 15% to SEK 5,838m (5,057), of which the effect of changes in exchange rate fluctuations was SEK 181m (97). This increase is due primarily to acquisitions and completed projects for own management, as well as an increase in the index for commercial premises and increased residential rents.

The lease portfolio was estimated to have a rental value on 30 June of SEK 12,556m (10,790). The average rental level for the whole property portfolio amounted to SEK 2,094/sq.m. (1,896) excluding project properties.

Rental income in a comparable portfolio increased by 5.4% (2.9) after adjustment for changes in exchange rates.

Rental income shows a considerable diversification of risk with regard to tenants, sectors and locations. The economic occupancy rate as of 30 June was 96% (96). The total rental value of unlet areas at the end of the period amounted to SEK 556m (440).

Property costs

Property costs for the period amounted to SEK –1,539m (–1,340), of which the effect of changes in exchange rates amounted to SEK –56m (–24).

Net operating income increased by 16% to SEK 4,299m (3,717), representing a surplus ratio of 74% (74). The surplus ratio was affected during the period by increased costs of electricity and heating.

Operating costs usually vary with the seasons. During a normal year, the first and fourth quarters have higher costs than the other quarters, while the third quarter usually has the lowest cost level.

Management and administrative costs

Management and administrative costs for the period amounted to SEK –540m (–514), of which the effect of changes in exchange rates amounted to SEK –25m (–11).

Participations in profits of associated companies/joint ventures

Balder owns property managing and project developing associated companies, see note 14 in the Annual Report for 2022.

Profit from participations in associated companies/joint ventures during the period amounted to SEK –216m (1,980) and Balder's participation in the associated companies' profit from property management amounted to SEK 929m (903).

Profit before tax was impacted by SEK –1,074m (1,750) as a result of unrealised changes in value in respect of the properties and interest rate derivatives. The tax expense for the period amounted to SEK –72m (–672).

Net financial items and changes in the value of derivatives

Net financial items amounted to SEK –1,383m (–918), of which the effect of changes in exchange rates amounted to SEK –62m (–16).

Changes in value of interest rate derivatives and option component convertible amounted to SEK 104m (1,200). Unrealised changes in value do not affect cash flow. The average interest rate for net financial items as of 30 June was 2.5% (1.7).

The turmoil in the financial markets since the first quarter last year, when Russia invaded Ukraine, have resulted in a shift from the capital market to banking. This shift has changed the financing structure from 64% bond financing as of 31 March 2022 to 49% as of 30 June 2023.

As of 30 June, the available liquidity including confirmed loan commitments was SEK 20 billion (23), corresponding to 114% of Balder's future maturities of interest-bearing liabilities within 18 months and 65% within 24 months.

Changes in value of investment properties

Balder conducted an individual internal valuation of the entire property portfolio as of 30 June, see also page 9. Unrealised changes in value for the period amounted to SEK –4,246m (5,587). Realised changes in value amounted to SEK 27m (36). The average yield requirement as of 30 June amounted to 4.8% (4.4), which is 0.2 percentage points higher compared to the year-end. The change in value during the period is mainly attributable to the increased estimated yield requirement.

Profit from sales of development properties

The profit from the sales of development properties is recognised when the buyer takes possession of the property. In addition to the cost, selling and marketing expenses are also included, which are recognised as expenses on an ongoing basis. These amounted to SEK –14m (–10) during the period.

Two projects were recognised as income during the period. The net profit from sales for the period amounted to SEK 222m (24) after the deduction of selling and marketing expenses, and includes the sale of the development projects Bovieran Helsinge ApS in Denmark and Brf Glasbruket i Majorna in Sweden.

Tax

The Group's total tax amounted to SEK 317m (–1,590), of which the effect of changes in exchange rates amounted to SEK 19m (–35). The current tax expense for the period amounted to SEK –108m (–384). The current tax expense attributable to the parent company's shareholders amounted to SEK –89m (–251).

The deferred tax expense for the period amounted to SEK 425m (–1,206).

Tax has been calculated using the current tax rate in each country. The Group's deferred tax liability has been calculated as the value of the net of fiscal deficits and the temporary difference between the carrying amounts and values for tax purposes primarily of properties and interest rate derivatives. The deferred tax liability amounted to SEK 17,571m (17,220).

Cash flow

Cash flow from operating activities before changes in working capital amounted to SEK 1,915m (1,967). Investing activities burdened cash flow by a net figure of SEK –4,583m (–6,758). Cash flow from financing activities amounted to SEK 910m net (7,723).

Total cash flow for the period was SEK –593m (2,473). The exchange rate difference in cash and cash equivalents amounted to SEK 91m (22).

In addition to unutilised credit facilities of SEK 12,827m (15,479), the Group's cash and cash equivalents, financial investments and unutilised overdraft facilities amounted to SEK 7,289m (7,924) as of 30 June. Available liquidity including confirmed credit commitments thus amounted to SEK 20,116m (23,402).

Second quarter 2023

Profit from property management for the second quarter 2023 amounted to SEK 1,655m (1,645). Profit from property management attributable to the parent company's shareholders for the second quarter 2023 increased by 3% and amounted to SEK 1,550m (1,501), corresponding to SEK 1.34 per share (1.34). Profit from property management included SEK 460m (475) in respect of associated companies. Rental income amounted to SEK 2,943m (2,550) and property costs amounted to SEK –742m (–638), which meant that net operating income increased by 15% to SEK 2,201m (1,912), of which the effect of changes in exchange rates was SEK 65m (37). The surplus ratio amounted to 75% (75).

Net profit after tax for the period amounted to SEK –1,292m (3,625). Profit after tax attributable to the parent company's shareholders amounted to SEK –867m (3,456), corresponding to SEK –0.75 per share (3.09). Profit was impacted by unrealised changes in the value of investment properties of SEK –2,644m (2,243), realised changes in the value of investment properties of SEK –1m (15), net profit from the sale of development properties of SEK –7m (25), changes in value in interest rate derivatives and option component convertible of SEK 279m (513) and profit from participations in associated companies of SEK –276m (151). The Group's total tax amounted to SEK 163m (–494). The current tax expense for the period amounted to SEK –42m (–308). The deferred tax income for the period amounted to SEK 205m (–186). The deferred tax was affected by negative exchange rate differences that arose from the translation of the parent company's euro bonds during the quarter. In the Group, these are used for hedging foreign net investments and are transferred to "Other comprehensive income".

Employees and organisation

As of 30 June, the Group had 1,148 co-responsibles (1,139), of whom 482 were female (479). Balder is organised into seven regions. The head office with Group-wide functions is located in Gothenburg.

Parent Company

The Parent Company's operations consist primarily of performing Groupwide services, but an important part relates to sales of services, principally to associated companies. Net sales in the parent company amounted to SEK 268m (245) during the period.

Net profit after tax for the period amounted to SEK 100m (9,308). Other net financial items amounted to SEK –440m (–1,356), of which exchange rate differences amounted to SEK –1,484m (–1,503), changes in value in respect of interest rate derivatives and option component convertible amounted to SEK 155m (1,050).

Reported exchange rate differences relate primarily to the translation of the Group's euro bonds, which from a Group perspective are used for hedging foreign net investments.

PROPERTY PORTFOLIO

On 30 June, Balder owned 1,869 investment properties (1,771) with a lettable area of 5,986,000 sq.m. (5,669,000) at a value of SEK 218,397m (203,374). Balder's total rental value excluding projects amounted to SEK 12,533m (10,747).

In addition to investment properties, Balder owns development properties with an acquisition cost of SEK 3,772m (3,152). The value of the total property portfolio amounted to SEK 222,169m (206,525).

Balder's commercial properties are located primarily in the central areas of major cities, and the residential properties are located in metropolitan regions and in places that are growing and developing positively in each country. Balder's ambition is to continue growing in selected markets.

BALDER'S PROPERTY PORTFOLIO ON 30/06/2023 1)

	Number of investment properties	Lettable area, sq.m.	Rental value, SEKm	Rental value, SEK/sq.m.	Rental income, SEKm	Economic occupancy rate, %	Carrying amount, SEKm	Carrying amount, %
Distributed by region
Helsinki	758	1,307,043	3,514	2,688	3,349	95	56,208	25
Stockholm	92	822,499	1,861	2,263	1,741	94	34,074	15
Gothenburg	200	1,190,196	2,133	1,792	2,044	96	39,204	18
Copenhagen	27	387,147	1,203	3,106	1,177	98	26,125	12
South	90	475,496	851	1,790	815	96	13,542	6
East	446	899,377	1,669	1,856	1,613	97	23,329	11
North	256	904,513	1,303	1,441	1,238	95	19,205	9
Total excluding projects	1,869	5,986,270	12,533	2,094	11,977	96	211,685	95
Projects for own management			23		23		6,712	3
Total investment properties	1,869	5,986,270	12,556	2,094	12,000	96	218,397	98
Development properties							3,772	2
Total property portfolio	1,869	5,986,270	12,556	2,094	12,000	96	222,169	100
Distributed by property category
Residential	1,370	2,976,651	6,765	2,273	6,486	96	117,401	53
Office	105	692,072	1,855	2,680	1,704	92	34,569	16
Retail	144	1,008,095	1,639	1,626	1,591	97	21,552	10
Industrial/Logistics	167	695,661	943	1,356	884	94	13,055	6
Other	83	613,791	1,331	2,168	1,313	99	25,110	11

Total excluding projects	1,869	5,986,270	12,533	2,094	11,977	96	211,685	95
Projects for own management			23		23		6,712	3
Total investment properties	1,869	5,986,270	12,556	2,094	12,000	96	218,397	98
Development properties							3,772	2
Total property portfolio	1,869	5,986,270	12,556	2,094	12,000	96	222,169	100

1) The above table refers to properties that Balder owned at the end of the period. Properties sold have been excluded and properties acquired have been adjusted to full-year values. Other properties include hotel, educational, care and mixed-use properties.

TOTAL PROPERTY PORTFOLIO, %

CARRYING AMOUNT DISTRIBUTED BY PROPERTY CATEGORY,

CARRYING AMOUNT DISTRIBUTED BY REGION, TOTAL PROPERTY PORTFOLIO, %

CHANGES IN PROPERTY PORTFOLIO

Investment properties

Balder's investment properties are reported on the basis of internal valuations. Properties in Sweden, Denmark, Finland, Norway, Germany and the UK are valued using the yield method.

In Finland, the acquisition cost method is used in addition to the yield method.

Properties under construction and project properties for own management are valued at market value reduced by estimated building expenditure and project risk.

Balder has increased the yield requirement in the valuations of the investment properties in the period by 0.2 percentage points compared with the year-end. The increased estimated yield requirement is explained by the uncertain market situation and rising market interest rates. As of 30 June, Balder's average yield requirement was 4.8% (4.4) excluding project properties for own management. The average yield requirement for residential properties amounted to 4.3% and for commercial properties 5.3%. In order to quality-assure its internal valuations, Balder arranges for parts of the portfolio to be valued externally on an ongoing basis and obtains second opinions1) on internal valuations. Historically, deviations between external and internal valuations have been insignificant.

Unrealised changes in value of investment properties

The overall carrying amount of Balder's investment properties amounted to SEK 218,397m (203,374) on 30 June. The unrealised change in value during the period amounted to SEK –4,246m (5,587).

The change in value during the period is mainly attributable to the increased estimated yield requirement.

Investments, acquisitions and divestments

During the period, a total of SEK 3,935m (7,386) was invested in respect of investment properties, of which SEK 419m (3,279) related to acquisitions and SEK 3,516m (4,107) related to investments in existing properties and projects for own management. Investment properties as well as condominiums and land were divested during the period with a sales value of SEK 669m (2,654). Realised changes in value from the divestments amounted to SEK 27m (36).

CHANGE IN CARRYING AMOUNT OF PROPERTIES	2023		2022
	SEKm	Number2)	SEKm	Number2)
Investment properties, 1 January	213,932	1,841	189,138	1,678
Investments in existing properties and projects	3,516		4,107
Acquisitions	419	2	3,279	17
Divestments	–642	–12	–2,619	–65
Change in value of investment properties, unrealised	–4,246		5,587
Currency changes	5,418		3,881
Reclassification	–	38	–	141
Investment properties, 30 June	218,397	1,869	203,374	1,771
Development properties, 1 January	3,421		2,697
Investments in projects	1,006		704
Divestments	–655		–249
Development properties, 30 June	3,772		3,152
Total property portfolio, 30 June	222,169		206,525

1) Statement from an external valuation firm in respect of the suitability of the valuation methods, the information sources used and the quality and credibility of the valuation. 2) Number of investment properties.

PROPERTY DEVELOPMENT

Within the framework of property development, both new production and rebuilding projects of residentials and commercial spaces are carried out. Investments are made primarily in areas where the company already operates, with a focus on the metropolitan regions of Stockholm, Gothenburg, Helsinki and Copenhagen. The building rights portfolio mainly includes building rights for the construction of both rental apartments and tenant-owner apartments, but also commercial properties.

Projects for own management

Projects for own management that are under construction have an estimated total investment of SEK 5.3 billion (11.8), of which SEK 3.6 billion (8.0) is invested and SEK 1.7 billion (3.8) remains to be invested. Most of the projects in progress relate to residential projects with condominiums that are rented out. The projects comprise about 2,300 apartments (4,750) and relate primarily to projects in Finland and Denmark.

Development properties for sale

A development property is a property that is owned for upgrading with a view to being divested. These properties are recognised at cost on an ongoing basis, and a profit/loss is recognised when each property is completed, sold and handed over to the buyer.

Development projects that are under construction have an estimated total investment of SEK 4.9 billion (4.1), of which SEK 2.8 billion (1.9) has been spent and SEK 2.1 billion (2.2) is still to be invested. All of the projects relate to residential projects that will be sold to end customers.

No sales results are reported for development projects during the second quarter.

The cost of all projects divested during the period amounted to SEK –669m (–259) and the profit from sales amounted to SEK 236m (34), excluding sales and marketing expenses for the period of SEK –14m (–10) in respect of all development properties.

PROJECT PROPERTIES FOR OWN MANAGEMENT – UNDER CONSTRUCTION

Country	Region	Project	Property category	Lettable area, sq.m.	Number of apartments	Total estimated investment, SEKm	Estimated completion
Finland	Helsinki	Raudikkokuja 7	Residential	5,780	161	277	Q3 2023
Finland	Helsinki	Riihimäen Pesispolku	Residential	2,430	100	106	Q3 2023
Finland	East	Jyväskylän Tulisydän	Residential	2,922	93	134	Q3 2023
Finland	East	Nokian Tanhuankadun Salsa	Residential	2,360	91	104	Q3 2023
Finland	East	Hämeenlinnan Keinusaari	Residential	3,709	119	171	Q3 2023
Finland	East	Tampereen Auvo	Residential	1,922	44	84	Q3 2023
Finland	East	Oulun Hohto	Residential	2,600	76	133	Q3 2023
Finland	East	Oulun Lumihuippu	Residential	1,686	59	69	Q3 2023
Sweden	Gothenburg	Västra Gatan Kungälv	Commercial	3,343	–	55	Q3 2023
Denmark	Copenhagen	Strandby Huse	Residential	3,024	48	170	Q4 2023
Finland	Helsinki	Kotkatie 6	Residential	3,791	100	217	Q4 2023
Finland	Helsinki	Sorakatu 9	Residential	2,790	77	145	Q4 2023
Finland	Helsinki	Kirkkonummen Tinankulma	Residential	1,147	25	60	Q4 2023
Finland	Helsinki	Porvoon Horisontti	Residential	1,484	54	81	Q4 2023
Finland	East	Oulun Tervapääsky	Residential	2,470	68	115	Q4 2023
Finland	Helsinki	Kirkkonummen Tinapuisto	Residential	1,147	25	52	Q1 2024
Finland	Helsinki	Patljoonantie 3-5	Residential	4,649	92	226	Q1 2024
Finland	East	Nokian Ylpeys	Residential	2,244	88	104	Q1 2024
Finland	East	Kangasalan Kuningatar	Residential	2,861	95	126	Q1 2024
Sweden	Stockholm	Hedin Akalla	Commercial	10,859	–	230	Q1 2024
Sweden	Stockholm	Mörtlösa MG Ford	Commercial	7,276	–	193	Q3 2024
Denmark	Copenhagen	Strandby Høje	Residential	19,549	289	1,029	Q3 2024
Finland	Helsinki	Peijinkuja 6	Residential	6,122	136	389	Q3 2024
Finland	Helsinki	Peijinkuja 10	Residential	4,443	121	282	Q4 2024
Finland	East	Kangasalan Kuningas	Residential	4,589	136	202	Q4 2024
Finland	East	Turun Huoleton	Residential	4,100	132	216	Q1 2025
Finland	East	Turun Rento	Residential	2,965	94	159	Q3 2025
Sweden	Stockholm	Basaren	Commercial	1,608	–	171	Q3 2025
Total				113,870	2,323	5,300

DEVELOPMENT PROPERTIES FOR SALE – UNDER CONSTRUCTION

Country	Region	Project	Property category	Lettable area, sq.m.	Number of apartments	Total estimated investment, SEKm	Estimated completion
Sweden	Gothenburg	Västra Gatan Kungälv	Residential	8,213	128	400	Q3 2023
Sweden	South	Bovieran Svedala	Residential	4,285	54	170	Q3 2023
Sweden	Gothenburg	Hovås Höjd	Residential	10,616	148	569	Q4 2023
Sweden	Stockholm	Caprea	Residential	3,742	28	550	Q4 2023
Sweden	Gothenburg	Frölunda	Residential	19,974	392	900	Q2 2024
Sweden	Stockholm	Fabrique 46	Residential	7,394	138	702	Q2 2024
Sweden	Stockholm	Basaren	Residential	4,277	65	319	Q4 2025
Sweden	Gothenburg	Bohusgatan Rubinen	Residential	6,153	93	422	Q1 2026
Sweden	Gothenburg	Bohusgatan Safiren	Residential	5,570	99	395	Q3 2026
Sweden	Gothenburg	Bohusgatan Spinellen	Residential	7,133	134	479	Q2 2027
Total				77,357	1,279	4,905
	Total under construction			191,227	3,602	10,206

FUTURE PROJECTS ESTIMATED CONSTRUCTION START 2025 AND ONWARDS

Country	Region	Gross area, sq.m.	Number of apartments
Sweden	Gothenburg	860,262	6,858
Sweden	Stockholm	593,613	5,404
Finland	Helsinki	280,987	5,187
Finland	East	31,160	665
Norway	Oslo	7,000	100
Denmark	Copenhagen	40,024	225
Total		1,813,046	18,439

The majority of future projects in the above table have a development plan that has gain legal force or is in progress.

CUSTOMERS

In order to limit the risk of lower rental income and consequently a weakened occupancy rate, Balder strives to develop long-term relationships with the company's existing customers.

Balder has a good diversification as regards the distribution between residential and commercial properties as well as the geographical distribution. The diversification strengthens the possibilities of maintaining a steady and satisfactory occupancy rate.

Balder's commercial leases have an average lease term of 6.4 years (6.2). Balder's ten biggest leases account for 3.5% (3.7) of total rental income, and their average lease term is 11.0 years (10.2).

LEASE MATURITY STRUCTURE 30/06/2023

Maturity date	Number of leases	Share, %	Contracted rent, SEKm	Share, %
2023	1,060	22	290	2
2024	1,295	27	613	5
2025	865	18	829	7
2026	637	13	595	5
2027–	926	19	3,267	27
Total	4,783	100	5,594	47
Residential 1)	46,404		6,276	52
Car park 1)	11,333		48	0
Garage 1)	6,262		83	1
Total	68,782		12,000	100

1) Normally has a period of notice of three months.

RENTAL INCOME AND PROFIT FROM PROPERTY MANAGEMENT

Profit from property management attributable to parent company's shareholders

Rental income

MATURITY STRUCTURE OF COMMERCIAL LEASE CONTRACTS

FINANCING

Balder has assets in Sweden, Denmark, Finland, Norway, Germany and the UK, which means that the Group is exposed to currency risks. Balder therefore has a diversified financing structure with bonds and bank financing in several different currencies. Balder values long-term relationships with its credit providers, which primarily comprise the major Nordic banks and capital market investors.

Balder's financing sources consist of bonds issued in euros in the European bond market under Balder's EMTN programme, followed by bank loans in various currencies, a domestic MTN programme, as well as a commercial paper programme in euros and Swedish kronor. In addition to these financing sources, Balder also has issued hybrid capital, which has an original maturity of 60 years and is considered as 50% equity by the credit rating agencies.

Balder may from time to time seek to retire or repurchase outstanding debt through open market purchases, privately negotiated transactions, tender offers, exchange offers or otherwise. Such repurchases, if any, will depend on market conditions, liquidity requirements, contractual restrictions and other factors. The amounts subject to such repurchases may be material. During 2023, Balder has repurchased bonds to a total of SEK 5.5 billion. In the second quarter, repurchases of SEK 2.9 billion

of bonds were carried out with maturity in the period 2024–2028. Two euro bonds amounting to EUR 578m were also repaid upon maturity, and there are no outstanding bond maturities during the current year.

During the second quarter, interest-bearing liabilities have increased by approximately SEK 5 billion due to the weakening of the Swedish krona and the fact that Balder has debt in foreign currency. This means that despite the fact that the loan volume in SEK is essentially identical, net debt is reduced in constant currency. The turmoil in the financial markets since the first quarter last year, when Russia invaded Ukraine, have resulted in a shift from the capital market to banking. This shift has changed the financing structure from 64% bond financing as of 31 March 2022 to 49% as of 30 June 2023.

As of the end of the quarter, the available liquidity including confirmed loan commitments was SEK 20 billion (23), corresponding to 114% of Balder's future maturities of interest-bearing liabilities within 18 months and 65% within 24 months. Balder's interest rate refixing period as of 30 June was 3.3 years, and the fixed credit term was 5.6 years. As of 30 June, 70% of loans were hedged with interest rate swaps and fixed-rate loans.

Balder has obligations to its financiers in the form of financial key ratios, so-called covenants, and all of them were fulfilled as of the end of the quarter.

FINANCIAL KEY RATIOS	2023 30 June	2022 30 June	2022 31 Dec
Interest-bearing liabilities excl. Hybrid capital, SEKm	136,431	120,942	130,310
Hybrid capital, SEKm	5,237	9,078	4,942
Available liquidity including confirmed loan commitments, SEKm	20,116	23,402	25,771
Average fixed credit term, years	5.6	5.9	5.7
Average interest rate refixing period, years	3.3	3.6	3.5
Net debt to total assets (financial covenant1) < 65), %	49.1	46.5	47.9
Interest coverage ratio (financial covenant1) > 1.8), times	3.6	4.7	4.7
Secured debt/Total assets (financial covenant1) < 45), %	20.8	15.7	17.9
Net debt/EBITDA, times	13.5	13.8	13.4
Credit rating S&P	BBB Negative outlook	BBB Stable outlook	BBB Negative outlook

1) Financial covenants refer to obligations that Balder has to its financiers in the form of financial key ratios.

FINANCIAL TARGETS		Target	Outcome
Equity/assets ratio, %	min.	40.0	38.9
Net debt to total assets, %	max.	50.0	49.1
Interest coverage ratio, times	min.	2.0	3.6
Net debt/EBITDA, times (rolling twelve months)	max.	11.0	13.0

FINANCING SOURCES, %

Unsecured loans, 85,714 Secured loans, 55,954

MATURITY STRUCTURE INTEREST-BEARING LIABILITIES 30/06/2023

Year	SEKm	Share, %
2023	6,544	5
2024	11,050	8
2025	20,037	14
2026	26,120	18
2027	16,745	12
2028	15,423	11
2029	8,310	6
2030	9,001	6
2031	7,378	5
2032	396	0
2033-	20,663	15
Total	141,668	100

INTEREST FIXING STRUCTURE 30/06/2023

Year	SEKm	Interest, %	Share, %
2023	40,476	3.5*	29
2024	7,060	2.3	5
2025	10,303	2.1	7
2026	15,091	2.5	11
2027	14,642	1.6	10
2028	14,134	3.4	10
2029	16,051	1.4	11
2030	8,773	1.9	6
2031	8,954	1.7	6
2032	2,805	2.5	2
2033-	3,381	1.5	2
Total	141,668	2.5	100

*) The average interest rate for the current year includes the margin for the variable part of the debt portfolio.

AVERAGE FIXED CREDIT TERM INTEREST-BEARING LIABILITIES

MATURITY STRUCTURE INTEREST-BEARING LIABILITIES

2017

2018

2019

2020

2021

2022

2023

2016

3

2013

2014

2015

NET DEBT TO TOTAL ASSETS

AVERAGE FIXED INTEREST TERM

SUSTAINABILITY

Balder's sustainability work

As a long-term property owner, Balder strives to assume social, environmental and financial responsibility. This includes not only minimising the environmental impact of its operations, but also maximising the positive impact on society, both locally and globally.

Balder has signed the Global Compact, the UN's set of international principles aimed at companies in the area of human rights, labour law matters, the environment and anti-corruption.

Balder strives to contribute to achieving the UN Global Sustainable Development Goals and has selected six of the 17 goals that are considered most relevant and where the company has the greatest opportunity to have an influence. To link these more closely to the business operations, the associated targets have also been identified in those areas where the company has the greatest opportunity to contribute to the goals being achieved.

Climate goals

Balder has set climate goals in line with the Paris Agreement, and shall more then halve emissions in its own operations by 2030, with 2022 as the base year, as well as to measure and reduce emissions in the value chain (Scope 3). The company has also set a goal to achieve net zero emissions throughout the value chain (Scope 1, 2 and 3) by 2045. The goals have been submitted to the Science Based Targets Initiative for approval. A roadmap will be produced during 2023 to specify which measures are required for the business to achieve its climate goals.

2030 HALVED EMISSIONS

2045 NET ZERO EMISSIONS

BALDER'S SUSTAINABILITY

FRAMEWORK MATERIAL TOPICS GOALS

• Energy efficiency and renewable energy sources
• Greenhouse gas emissions and climate adaptation • Environmentally certified properties
• Minimise waste and increase degree of sorting
• Safety and well-being of tenants
• Area development for social sustainability
• Responsible, fossil-free transportation
• Business ethics and responsible collaboration
• Social and environmental requirements in supply chain
• COWORKERS Good work environment with satisfied employees • Diversity and equal opportunity

• FINANCES Long-term financial stability and profitability
  -

• Energy efficiency improvement 2% per sq.m. and year

• Reduced water use 2% per sq.m. and year
• 55% reduction of emissions in own operations by 2030 and achieve net zero emissions throughout the value chain by 2045
• All newly produced properties must fulfill Miljöbyggnad Silver or equivalent certification
• Increase the proportion of environmentally certified buildings in Balder's current property portfolio
• Create jobs in the property management organisation for young people
• Implement initiatives for sustainable travel to and from the properties
• No incidents of corruption
• No incidents of discrimination
• All employees must be trained in the Code of Conduct
• Encourage environment-friendly travel
• Green financing Increase the proportion of green financing

ASSOCIATED COMPANIES

Balder is co-owner of a large number of companies that manage properties and develop projects, and also of the niche bank Collector. For further information about Balder's associated companies, see pages 39–41 and 74–76 in Balder's Annual Report 2022.

Balder invested SEK 196m in associated companies during the period.

The tables below show Balder's share of property managing associated companies. Companies included in the tables are Tulia AB 50% (50), Fastighets AB Centur 50% (50), Trenum AB 50% (50), Anthon Eiendom AS 60% (60), Sinoma Fastighets AB 49% (49), Tornet Bostadsproduktion AB 33% (33), Entra ASA just under 40% (40), Brinova Fastigheter AB 19% (19) and Stenhus Fastigheter i Norden AB 20% (20).

BALDER'S PARTICIPATION IN THE PROPERTY MANAGING ASSOCIATED COMPANIES' PROPERTY PORTFOLIO ON 30/06/2023 1)

	Number of investment properties 2)	Lettable area, sq.m.	Rental value, SEKm	Rental value, SEK/sq.m.	Rental income, SEKm	Economic occupancy rate,%	Carrying amount, SEKm	Carrying amount, %
Distributed by region
Stockholm	127	176,567	368	2,084	349	95	6,929	13
Gothenburg	106	253,108	333	1,317	321	96	4,787	9
South	165	158,654	254	1,598	246	97	3,953	8
East	70	118,436	170	1,439	166	98	2,517	5
North	45	186,861	379	2,030	359	95	6,811	13
Oslo	74	443,121	1,210	2,730	1,149	95	24,784	47
Total excluding projects	587	1,336,747	2,715	2,031	2,591	95	49,781	95
Projects for own management			–		–		2,877	5
Total property portfolio	587	1,336,747	2,715	2,031	2,591	95	52,658	100
Distributed by property category
Residential	141	195,477	378	1,933	365	97	7,812	15
Office	150	696,424	1,724	2,475	1,635	95	33,306	63
Retail	64	143,838	205	1,429	199	97	2,737	5
Other	232	301,008	408	1,355	392	96	5,927	11
Total excluding projects	587	1,336,747	2,715	2,031	2,591	95	49,781	95
Projects for own management			–		–		2,877	5
Total property portfolio	587	1,336,747	2,715	2,031	2,591	95	52,658	100

1) The above table refers to properties that the associated companies owned at the end of the period. Properties sold have been excluded and properties acquired have been adjusted to full-year values. Other properties include hotel, educational, nursing, industrial and mixed-use properties.

2) Refers to the entire associated companies' portfolio.

BALDER´S PARTICIPATION IN THE BALANCE SHEETS OF THE PROPERTY MANAGING ASSOCIATED COMPANIES

SEKm	2023 30 June	2022 30 June	2022 31 Dec
Assets
Properties	52,658	54,982	55,758
Other assets	2,792	2,157	2,441
Cash and cash equivalents	500	887	523
Total assets	55,951	58,026	58,723
Shareholders' equity and liabilities
Equity/interest-bearing shareholder loan	23,494	25,284	24,241
Deferred tax liability	4,533	5,041	5,087
Interest-bearing liabilities	26,458	26,374	27,799
Other liabilities	1,466	1,327	1,596
Total equity and liabilities	55,951	58,026	58,723

TOTAL PROPERTY PORTFOLIO, %

OTHER DISCLOSURES

Events after the end of the period

No events of material significance for Fastighets AB Balder's position have occurred after the end of the reporting period.

Related party transactions

Balder receives fees from associated companies and Erik Selin Fastigheter AB for property and company management services. These fees amounted to SEK 48m (42) during the period and are recognised in management and administrative costs. During the period, construction services were purchased from Tommy Byggare AB to the order of SEK 19m (74). All transactions have been priced on market terms.

Risks and uncertainties

Balder's operations, financial position and earnings may be affected by a number of risks and uncertainties. These are described on pages 47–50 in the Annual Report 2022. Otherwise no significant changes have been noted.

Accounting policies

Balder applies IFRS (International Financial Reporting Standards) as adopted by the European Union in its consolidated accounts and the interpretations of these (IFRIC). This interim report is prepared in accordance with IAS 34, Interim Financial Reporting. In addition, relevant provisions of the Swedish Annual Accounts Act and the Swedish Securities Markets Act have also been applied. The Parent Company has prepared its financial statements in accordance with the Swedish Annual Accounts Act, the Swedish Securities Markets Act and RFR 2, Accounting for Legal Entities. The accounting policies follow those reported in the Annual Report 2022.

New and changed standards and policies that came into force as of 1 January 2023 or later are not considered to have any material impact on the Group's financial reports.

Recognition of convertible bond

Convertible bonds issued in EUR are divided into two components, a liability component and an option component. The liability component is valued at accrued cost using the effective interest method. The option component is recognised as a liability and is valued on an ongoing basis at fair value via the income statement. Transaction costs are accrued over the term and included in the change in value in the income statement. According to IFRS, earnings per share after dilution must be calculated with the assumption that conversion will take place regardless of the current share price, i.e. the calculation is made with full dilution on day one.

This interim report has not been subject to an examination by the company's auditors.

Signatures and verification

The Board of Directors and the Chief Executive Officer give their assurance that the interim report provides a true and fair review of the development of the Group's and the Parent Company's operations, financial position and earnings, and describes material risks and uncertainties facing the Parent Company and the companies forming the Group.

Gothenburg, 18 July 2023

Christina Rogestam Chairman of the Board

Board member Board member

Fredrik Svensson Sten Dunér

Anders Wennergren Erik Selin Board member Board member and CEO

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

SEKm	2023 April-June	2022 April-June	2023 Jan-June	2022 Jan-June	2022/2023 July-June	2022 Jan-Dec
Rental income	2,943	2,550	5,838	5,057	11,302	10,521
Property costs	–742	–638	–1,539	–1,340	–2,924	–2,725
Net operating income	2,201	1,912	4,299	3,717	8,379	7,796
Management and administrative costs	–276	–262	–540	–514	–1,045	–1,019
Participations in the profits of associated companies/joint ventures	–276	151	–216	1,980	–1,195	1,002
– of which profit from property management	460	475	929	903	1,955	1,929
– of which changes in value	–814	–169	–1,074	1,750	–3,256	–433
– of which tax	77	–155	–72	–672	106	–495
Other income/costs	2	11	–4	–22	1	–17
Net financial items	–732	–491	–1,383	–918	–2,495	–2,031
– of which cost of leases/ground rent	–21	–19	–40	–37	–79	–76
Profit including changes in value and tax in associated companies	919	1,322	2,156	4,244	3,644	5,732
– of which Profit from property management	1,655	1,645	3,302	3,167	6,794	6,659
Changes in value
Changes in value investment properties, realised	–1	15	27	36	103	111
Changes in value investment properties, unrealised	–2,644	2,243	–4,246	5,587	–4,415	5,419
Income sale development properties	3	233	890	283	1,744	1,136
Costs sale development properties	–11	–208	–669	–259	–1,436	–1,027
Changes in value derivatives	279	513	104	1,200	521	1,617
Changes in value total	–2,374	2,796	–3,894	6,846	–3,483	7,257
Profit before tax	–1,454	4,118	–1,737	11,090	161	12,988
Income tax	163	–494	317	–1,590	–91	–1,999
Net profit for the period/year	–1,292	3,625	–1,420	9,500	70	10,989
Net profit for the period/year attributable to:
Parent company's shareholders	–867	3,456	–918	8,717	540	10,175
Non-controlling interests	–424	169	–501	783	–470	814
	–1,292	3,625	–1,420	9,500	70	10,989
Other comprehensive income – items that may be reclassified to net profit/loss for the period
Translation difference relating to foreign operations (net after hedge accounting)	980	397	1,253	689	1,570	1,005
Cash flow hedges after tax	80	158	68	251	231	414
Participation in other comprehensive income of associated companies/joint ventures	196	–636	–719	78	–331	466
Total comprehensive income for the period/year	–34	3,544	–818	10,518	1,539	12,875
Total comprehensive income for the period/year attributable to:
Parent company's shareholders	–210	2,930	–1,077	9,136	690	10,903
Non-controlling interests	176	613	260	1,382	849	1,972
	–34	3,544	–818	10,518	1,539	12,875
Profit from property management	1,655	1,645	3,302	3,167	6,794	6,659
Of which non-controlling interests part of profit from property management	–105	–144	–202	–283	–439	–521
Profit from property management attributable to parent company's shareholders	1,550	1,501	3,099	2,883	6,355	6,139
Profit from property management per share, SEK	1.34	1.34	2.69	2.58	5.59	5.48
Profit after tax per share, SEK	–0.75	3.09	–0.80	7.79	0.48	9.09
Profit after tax per share after dilution of convertible, SEK 1)	–0.75	3.09	–0.89	7.79	0.33	9.09

1) Convertible bonds involve dilution effects in cases where a conversion into ordinary shares would result in reduced earnings per share.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

SEKm	2023 30 June	2022 30 June	2022 31 Dec
Assets
Investment properties	218,397	203,374	213,932
Development properties	3,772	3,152	3,421
Lease contract; Right-of-use assets	1,909	1,614	1,881
Other fixed assets	280	216	272
Participations in associated companies/joint ventures	30,298	32,072	31,620
Derivatives	2,042	1,510	1,982
Other receivables	5,668	4,426	4,115
Cash and cash equivalents and financial investments	6,879	7,511	6,553
Total assets	269,244	253,875	263,775
Equity and liabilities
Equity 1)	102,049	98,965	102,909
Deferred tax liability	17,571	17,220	17,769
Interest-bearing liabilities	141,668	130,020	135,252
–of which Hybrid capital 2)	5,237	9,078	4,942
Lease contract	1,909	1,613	1,887
Other liabilities	6,048	6,056	5,958
Total equity and liabilities	269,244	253,875	263,775
1) Of which Non-controlling interests. 2) 50% of the Hybrid capital is treated as equity by the ratings agencies and thereby reduces interest-bearing liabilities when calculating the debt/equity ratio and net debt to total assets	12,929	12,248	12,715
ratio and increases equity when calculating the equity/assets ratio.	2,618	4,539	2,471

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

SEKm	2023 30 June	2022 30 June	2022 31 Dec
Opening equity	102,909	88,567	88,567
Total comprehensive income for the period/year	–818	10,518	12,875
Transactions with non-controlling interests	–3	8	–183
Dividend to non-controlling interests	–40	–131	–131
Shareholder contributions from non-controlling interests	–	3	3
Non-controlling interests arising from the acquisition of subsidiaries	–	0	0
Share issue, after share issue costs	–	–	1,778
Closing equity	102,049	98,965	102,909

CONSOLIDATED STATEMENT OF CASH FLOW

SEKm	2023 April-June	2022 April-June	2023 Jan-June	2022 Jan-June	2022 Jan-Dec
Net operating income	2,201	1,912	4,299	3,717	7,796
Other income/costs	2	11	–4	–22	–17
Management and administrative costs	–276	–262	–540	–514	–1,019
Selling and marketing expenses development properties	–7	–5	–14	–10	–20
Reversal of depreciation	16	13	35	26	52
Net financial items paid	–935	–565	–1,509	–999	–1,860
Taxes paid	–90	–142	–353	–231	–491
Cash flow from operating activities before change in working capital	912	961	1,915	1,967	4,442
Change in operating receivables	295	–277	–72	–441	394
Change in operating liabilities	2,082	303	1,237	–17	214
Cash flow from operating activities	3,288	988	3,081	1,508	5,050
Acquisition of investment properties	–405	–2,449	–419	–3,279	–5,160
Acquisition/Divestment of property, plant and equipment	–25	–35	–43	–56	–138
Purchase of financial investments	–278	–952	–897	–1,022	–1,077
Acquisition of shares/Capital contributions/Loans to associated companies/joint ventures	–287	–23	–784	–848	–1,518
Investment in existing properties and projects	–2,203	–2,807	–4,523	–4,812	–10,742
Transactions with non-controlling interests	–	–42	–3	8	–183
Sale of investment properties	622	2,428	669	2,654	2,913
Sale of development properties	3	233	890	283	1,136
Sale of financial investments	8	–	8	61	1,238
Sale of shares in associated companies/joint ventures	239	–	239	–	1
Dividend paid from associated companies/joint ventures	278	242	278	252	614
Cash flow from investing activities	–2,048	–3,406	–4,583	–6,758	–12,915
Share issue, after share issue costs	–	–	–	–	1,778
Amortisation of lease liability	–12	–27	–17	–25	–17
Shareholder contributions from non-controlling interests	–	2	–	3	3
Dividend paid to non-controlling interests	–40	–131	–40	–131	–131
Loans raised	5,893	3,688	19,216	17,044	26,896
Amortisation/redemption of loans sold properties/changes in overdraft facilities	–10,254	–9	–18,250	–9,168	–18,032
Cash flow from financing activities	–4,413	3,523	910	7,723	10,497
Cash flow for the period/year	–3,173	1,106	–593	2,473	2,632
Cash and cash equivalents at the start of the period/year	6,572	2,674	3,977	1,299	1,299
Exchange rate difference in cash and cash equivalents	77	14	91	22	46
Cash and cash equivalents at the end of the period/year	3,476	3,794	3,476	3,794	3,977
Available liquidity, SEKm
Cash and cash equivalents	3,476	3,794	3,476	3,794	3,977
Unutilised overdraft facilities	410	413	410	413	410
Unutilised credit facilities	12,827	15,479	12,827	15,479	18,808
Financial investments	3,403	3,717	3,403	3,717	2,576
Available liquidity including confirmed loan commitments	20,116	23,402	20,116	23,402	25,771

SEGMENT INFORMATION

SEKm	2023 April-June	2022 April-June	2023 Jan-June	2022 Jan-June	2022/2023 July-June	2022 Jan-Dec
Rental income
Helsinki	708	644	1,387	1,274	2,718	2,606
Stockholm	443	393	890	775	1,734	1,618
Gothenburg	500	432	995	854	1,917	1,776
Copenhagen	283	217	557	427	1,030	899
South	199	172	393	339	769	715
East	500	407	996	819	1,903	1,727
North	310	285	620	568	1,232	1,180
Total	2,943	2,550	5,838	5,057	11,302	10,521
Net operating income
Helsinki	475	461	910	874	1,829	1,793
Stockholm	339	302	672	588	1,309	1,225
Gothenburg	392	322	766	628	1,465	1,327
Copenhagen	216	168	426	324	784	683
South	145	127	286	246	564	524
East	391	302	755	603	1,434	1,282
North	243	231	485	454	993	962
Total	2,201	1,912	4,299	3,717	8,379	7,796

The Group's internal reporting of operations is divided into the above segments. Total net operating income corresponds with reported net operating income in the income statement. The difference between net operating income of SEK 4,299m (3,717) and profit before tax of SEK –1,737m (11,090) consists of changes in value of investment properties

of SEK –4,220m (5,623), profit from sales of development properties of SEK 222m (24), other income/expenses of SEK –4m (–22), management and administrative costs of SEK –540m (–514), participations in profit from associated companies/joint ventures of SEK –216m (1,980), net financial items of SEK –1,383m (–918) and changes in value of derivatives of SEK 104m (1,200).

SEKm	2023 30 June	2022 30 June	2022 31 Dec
Property portfolio
Helsinki	56,208	49,984	52,932
Stockholm	34,074	34,440	34,267
Gothenburg	39,204	36,067	36,947
Copenhagen	26,125	20,889	22,811
South	13,542	12,505	12,901
East	23,329	19,727	21,704
North	19,205	19,083	20,061
Total excluding projects	211,685	192,696	201,623
Projects for own management	6,712	10,678	12,309
Total investment properties	218,397	203,374	213,932
Development properties	3,772	3,152	3,421
Total property portfolio	222,169	206,525	217,353

The carrying amounts of properties changed during the period due to investments, acquisitions, divestments, unrealised changes in value and currency changes by SEK 3,276m in the Helsinki region, SEK –194m in the Stockholm region, SEK 2,257m in the Gothenburg region, SEK 3,314m in the Copenhagen region, SEK 641m in the South region, SEK 1,625m in the East region and SEK –857m in the North region.

The Group's projects for own management decreased by SEK –5,597m and the Group's development properties increased by SEK 351m. SATO's property portfolio is divided between the regions of Helsinki and East. Property ownership in Norway is classified under region North, the properties in Denmark under region Copenhagen and the properties in Germany and the UK under region South.

KEY RATIOS

	2023 April-June	2022 April-June	2023 Jan-June	2022 Jan-June	2022/2023 July-June	2022 Jan-Dec
Share-related key ratios
Average number of shares, thousands	1,154,000	1,119,000	1,154,000	1,119,000	1,136,596	1,119,192
Profit after tax per share, SEK	–0.75	3.09	–0.80	7.79	0.48	9.09
Profit after tax per share after dilution of convertible, SEK1)	–0.75	3.09	–0.89	7.79	0.33	9.09
Profit after tax excluding unrealised changes in value per share, SEK	1.02	1.26	2.21	2.15	4.77	4.71
Profit from property management per share, SEK	1.34	1.34	2.69	2.58	5.59	5.48
Net operating income per share, SEK	1.67	1.46	3.27	2.84	6.49	6.06
Outstanding number of shares, thousands	1,154,000	1,119,000	1,154,000	1,119,000	1,154,000	1,154,000
Equity per share, SEK	77.23	77.49	77.23	77.49	77.23	78.16
Long-term net asset value per share (NAV), SEK	91.12	91.97	91.12	91.97	91.12	92.10
Share price on closing date per share, SEK	39.36	49.01	39.36	49.01	39.36	48.52
Property-related key ratios
Rental value full-year, SEK/sq.m.	2,094	1,896	2,094	1,896	2,094	2,060
Rental income full-year, SEK/sq.m.	2,001	1,818	2,001	1,818	2,001	1,982
Economic occupancy rate, %	96	96	96	96	96	96
Vacancy rate, %	4	4	4	4	4	4
Surplus ratio, %	75	75	74	74	74	74
Carrying amount, SEK/sq.m.	35,362	33,992	35,362	33,992	35,362	34,540
Number of investment properties	1,869	1,771	1,869	1,771	1,869	1,841
Lettable area, sq.m. thousands	5,986	5,669	5,986	5,669	5,986	5,837
Profit from property management, attributable to parent company's shareholders, SEKm	1,550	1,501	3,099	2,883	6,355	6,139
Financial key ratios
Return on equity, %	3.0	8.9	1.6	13.5	0.6	12.1
Return on total assets, %	2.5	4.3	1.6	6.4	1.0	6.1
Interest coverage ratio, times	3.3	4.8	3.6	4.7	4.1	4.7
Equity/assets ratio, %	38.9	40.8	38.9	40.8	38.9	40.0
Debt/equity ratio, times	1.4	1.3	1.4	1.3	1.4	1.3
Net debt to total assets, %	49.1	46.5	49.1	46.5	49.1	47.9
Net debt/EBITDA, times	13.7	13.4	13.5	13.8	13.0	13.4

1) Convertible bonds involve dilution effects in cases where a conversion into ordinary shares would result in reduced earnings per share.

CONDENSED PARENT COMPANY INCOME STATEMENT

SEKm	2023 April-June	2022 April-June	2023 Jan-June	2022 Jan-June	2022/2023 July-June	2022 Jan-Dec
Net sales	134	129	268	245	514	491
Administrative costs	–134	–129	–267	–244	–516	–492
Operating profit	–0	0	0	1	–2	–2
Profit from financial items
Profit from participations in subsidiaries	178	9,501	178	9,501	–2,498	6,825
Other net financial items	–455	–1,360	–440	–1,356	–1,376	–2,291
– of which exchange rate differences	–1,148	–1,486	–1,484	–1,503	–2,832	–2,851
Changes in value of derivatives	483	450	155	1,050	612	1,507
Profit before appropriations and tax	207	8,591	–107	9,195	–3,264	6,039
Appropriations
Group contributions	–	–	–	–	2,708	2,708
Profit before tax	207	8,591	–107	9,195	–556	8,746
Income tax	111	240	207	113	–187	–281
Net profit for the period/year1)	318	8,831	100	9,308	–742	8,466

1) The parent company has no items that are recognised in Other comprehensive income, and total comprehensive income therefore corresponds to net profit for the period/year.

CONDENSED PARENT COMPANY BALANCE SHEET

SEKm	2023 30 June	2022 30 June	2022 31 Dec
Assets
Property, plant and equipment	28	25	28
Financial non-current assets	31,151	36,183	32,931
Receivables from Group companies	89,558	88,004	92,204
Derivatives	1,033	728	1,185
Current receivables	465	929	415
Cash and cash equivalents and financial investments	2,428	2,044	2,895
Total assets	124,662	127,914	129,658
Equity and liabilities
Equity	28,793	27,757	28,693
Interest-bearing liabilities	55,793	52,987	52,199
–of which Hybrid capital	5,237	9,078	4,942
Liabilities to Group companies	39,507	46,682	48,082
Other liabilities	569	488	685
Total equity and liabilities	124,662	127,914	129,658

THE SHARE AND OWNERS

Balder's share is listed on Nasdaq Stockholm, Large Cap segment. The company's market capitalisation as of 30 June amounted to SEK 45,421m (54,842).

The principal owner in Fastighets AB Balder is Erik Selin Fastigheter AB, which owns 34.1% (35.1) of the capital and 47.8% (48.8) of the votes. Foreign ownership amounts to approximately 23% (30) of outstanding shares.

The share

At the end of the period, Balder had approximately 31,000 shareholders (25,000). During the period, approximately 400.7 million shares were traded (244.8), which corresponds to an average of about 3,258,000 shares per trading day (1,990,000). The annual turnover rate during the period amounted to 69% (44). The price of the share was SEK 39.36 (49.01) on 30 June, corresponding to a fall of 19% since the year-end.

Share capital

As of 30 June, the share capital in Balder amounted to SEK 192,333,333 distributed among 1,154,000,000 shares. Each share has a quota value of SEK 0.16667, of which 67,376,592 shares are Class A and 1,086,623,408 shares are Class B. The total number of outstanding shares is 1,154,000,000 as of 30 June. Each Class A share carries one vote and each Class B share carries one tenth of one vote.

No shares were repurchased during the period.

Annual General Meeting

Decisions made at the Annual General Meeting of Fastighets AB Balder on 11 May 2023 included the following:

The AGM adopted the year-end accounts for 2022 and decided that no dividend should be distributed.

The AGM granted the Board of Directors and the CEO discharge from liability and re-elected Christina Rogestam, Erik Selin, Fredrik Svensson, Sten Dunér and Anders Wennergren. Christina Rogestam was appointed Chairman of the Board.

The AGM decided that the nomination committee shall be composed of one representative for each of the three biggest shareholders or ownership constellations in terms of the number of votes, based on the shareholders registered in the share register kept by Euroclear on the last banking day in September, and the Chairman of the Board.

The AGM authorised the Board of Directors, before the next annual general meeting, on one or more occasions, with or without the preferential rights of shareholders, to decide on the new issuing of Class B shares and of warrants and/or convertibles with the right to subscribe and/or convert to Class B shares. This authorisation shall comprise no more than 10% of Class B shares in the company.

The AGM also decided to authorise the Board of Directors, before the next annual general meeting, on one or more occasions, to decide on the acquisition of the company's own Class B shares, but that the aggregated holding of the company's own shares may not exceed 10% of the shares in the company.

OWNERSHIP LIST AS OF 30/06/2023

Owner	A shares	B shares	Total number of shares	Capital, %	Votes, %
Erik Selin via company	49,855,968	343,265,400	393,121,368	34.1	47.8
Arvid Svensson Invest AB	17,495,352	81,255,240	98,750,592	8.6	14.6
AMF Försäkring och Fonder	–	75,678,579	75,678,579	6.6	4.3
Swedbank Robur Fonder	–	56,741,128	56,741,128	4.9	3.2
Länsförsäkringar Fondförvaltning AB	–	46,315,429	46,315,429	4.0	2.6
SEB Investment Management	–	23,409,013	23,409,013	2.0	1.3
Lannebo Fonder	–	21,387,039	21,387,039	1.9	1.2
Folksam	–	16,064,697	16,064,697	1.4	0.9
Cliens Fonder	–	13,902,789	13,902,789	1.2	0.8
Andra AP-fonden	–	12,241,154	12,241,154	1.1	0.7
Other	25,272	396,362,940	396,388,212	34.3	22.5
Total		67,376,592 1,086,623,408	1,154,000,000	100.0	100.0

DEVELOPMENT SHARE PRICE, NET ASSET VALUE AND PROFIT FROM PROPERTY MANAGEMENT

SHARE PRICE/NET ASSET VALUE & SHARE PRICE/PROFIT FROM PROPERTY MANAGEMENT

Share price/Net asset value (NAV) Share price/Profit from property management

25 FASTIGHETS AB BALDER INTERIM REPORT JANUARY-JUNE 2023

SHARE-RELATED KEY RATIOS	2023 April-June	2022 April-June	2023 Jan-June	2022 Jan-June	2022/2023 July-June	2022 Jan-Dec
Profit after tax per share, SEK
A Profit after tax for the period attributable to the parent company's share holders during the period according to the income statement, SEKm	–867	3,456	–918	8,717	540	10,175
B Average number of outstanding shares during the period, million	1,154	1,119	1,154	1,119	1,137	1,119
A/B Profit after tax per share, SEK	–0.75	3.09	–0.80	7.79	0.48	9.09
Profit after tax per share after dilution of convertible, SEK
A Profit after tax for the period attributable to the parent company's share holders during the period according to the income statement, SEKm	–867	3,456	–918	8,717	540	10,175
B Effect on profit of convertible, SEKm	–37	–	151	–	151	–
C Average number of outstanding shares during the period after dilution of
convertible, million	1,229	1,119	1,206	1,119	1,163	1,119
(A-B)/C Profit after tax per share after dilution of convertible, SEK	–0.751)	3.09	–0.89	7.79	0.33	9.09
Profit after tax excluding unrealised changes in value per share, SEK A Profit after tax for the period attributable to the parent company's share holders during the period according to the income statement, SEKm	–867	3,456	–918	8,717	540	10,175
B Changes in value of investment properties, unrealised during the period according to the income statement, SEKm	–2,644	2,243	–4,246	5,587	–4,415	5,419
C Changes in value of derivatives during the period according to the income statement, SEKm	279	513	104	1,200	521	1,617
D Non-controlling interests' share of unrealised changes in value during the period, SEKm	–604	12	–841	592	–1,003	430
E Changes in value in participations in profit from associated companies/ joint ventures during the period according to the income statement, SEKm	–814	–169	–1,074	1,750	–3,256	–433
F Tax effect of unrealised changes in value, SEKm	530	–531	901	–1,637	1,266	–1,272
G Average number of outstanding shares during the period, million	1,154	1,119	1,154	1,119	1,137	1,119
(A-B-C+D-E-F)/G Profit after tax excluding unrealised changes in value per
share, SEK	1.02	1.26	2.21	2.15	4.77	4.71
Profit from property management per share, SEK A Profit from property management attributable to the parent company's
shareholders during the period according to the income statement, SEKm	1,550	1,501	3,099	2,883	6,355	6,139
B Average number of outstanding shares during the period, million	1,154	1,119	1,154	1,119	1,137	1,119
A/B Profit from property management per share, SEK	1.34	1.34	2.69	2.58	5.59	5.48
Net operating income per share, SEK
A Net operating income attributable to the parent company's shareholders
during the period, SEKm	1,927	1,637	3,774	3,179	7,373	6,778
B Average number of outstanding shares during the period, million	1,154	1,119	1,154	1,119	1,137	1,119
A/B Net operating income per share, SEK	1.67	1.46	3.27	2.84	6.49	6.06
Equity per share, SEK
A Equity attributable to the parent company's shareholders at the end of
the period according to the balance sheet, SEKm	89,120	86,717	89,120	86,717	89,120	90,194
B Number of outstanding shares at the end of the period, million	1,154	1,119	1,154	1,119	1,154	1,154
A/B Equity per share, SEK	77.23	77.49	77.23	77.49	77.23	78.16
Long-term net asset value per share (NAV), SEK
A Equity attributable to the parent company's shareholders at the end of the period according to the balance sheet, SEKm	89,120	86,717	89,120	86,717	89,120	90,194
B Deferred tax according to the balance sheet, SEKm	17,571	17,220	17,571	17,220	17,571	17,769
C Interest rate derivatives, SEKm	–1,543	–1,019	–1,543	–1,019	–1,543	–1,677
D Number of outstanding shares at the end of the period, million	1,154	1,119	1,154	1,119	1,154	1,154
(A+B+C)/D Long-term net asset value per share (NAV), SEK	91.12	91.97	91.12	91.97	91.12	92.10

1) In cases where the performance measure indicates a better outcome compared with without dilution of convertible, the performance measure applied is Profit after tax per share, SEK.

NUMBER OF SHARES	2023 April-June	2022 April-June	2023 Jan-June	2022 Jan-June	2022/2023 July-June	2022 Jan-Dec
Average number of shares	1,154,000,000		1,119,000,000 1,154,000,000	1,119,000,000	1,136,596,154	1,119,191,781
Average number of shares after dilution of convertible	1,228,659,366	1,119,000,000	1,206,385,301	1,119,000,000	1,162,644,889	1,119,191,781
Outstanding number of shares	1,154,000,000		1,119,000,000 1,154,000,000		1,119,000,000 1,154,000,000 1,154,000,000
Outstanding number of shares after dilution of convertible	1,228,659,366	1,119,000,000	1,228,659,366	1,119,000,000	1,228,659,366 1,154,000,000

PROPERTY-RELATED KEY RATIOS	2023 April-June	2022 April-June	2023 Jan-June	2022 Jan-June	2022/2023 July-June	2022 Jan-Dec
Rental value full year, SEK/sq.m.
A Rental value on annual basis at the end of the period, SEKm	12,533	10,747	12,533	10,747	12,533	12,025
B Lettable area, thousand sq.m.	5,986	5,669	5,986	5,669	5,986	5,837
A/B x 1,000 Rental value, full year, SEK/sq.m.	2,094	1,896	2,094	1,896	2,094	2,060
Rental income full year, SEK/sq.m.
A Rental income on annual basis at the end of the period, SEKm	11,977	10,307	11,977	10,307	11,977	11,568
B Lettable area, thousand sq.m.	5,986	5,669	5,986	5,669	5,986	5,837
A/B x 1,000 Rental income, full year, SEK/sq.m.	2,001	1,818	2,001	1,818	2,001	1,982
Economic occupancy rate, % A Rental income on annual basis at the end of the period, SEKm	11,977	10,307	11,977	10,307	11,977	11,568
B Rental value on annual basis at the end of the period, SEKm	12,533	10,747	12,533	10,747	12,533	12,025
A/B Economic occupancy rate, %	96%	96%	96%	96%	96%	96%
Surplus ratio, % A Net operating income during the period according to the income statement, SEKm	2,201	1,912	4,299	3,717	8,379	7,796
B Rental income during the period according to the income statement, SEKm	2,943	2,550	5,838	5,057	11,302	10,521
A/B Surplus ratio, %	75%	75%	74%	74%	74%	74%
Carrying amount, SEK/sq.m.
A Carrying amount of investment properties excluding projects, SEKm	211,685	192,696	211,685	192,696	211,685	201,623
B Lettable area, thousand sq.m. A/B x 1,000 Carrying amount, SEK/sq.m.	5,986 35,362	5,669 33,992	5,986 35,362	5,669 33,992	5,986 35,362	5,837 34,540

FINANCIAL KEY RATIOS		2022 April-June	2023 Jan-June	2022 Jan-June	2022/2023 July-June	2022 Jan-Dec
Return on equity, %
A Profit after tax for the period attributable to the parent company's share holders during the period according to the income statement, SEKm	–867	3,456	–918	8,717	540	10,175
B Changes in value of investment properties, realised and unrealised during the period according to the income statement, SEKm	–2,645	2,258	–4,220	5,623	–4,312	5,530
C Profit from development properties during the period according to the income statement, SEKm	–7	25	222	24	307	110
D Changes in value of derivatives during the period according to the income statement, SEKm	279	513	104	1,200	521	1,617
E Changes in value in participations in profit from associated companies/ joint ventures during the period according to the income statement, SEKm	–814	–169	–1,074	1,750	–3,256	–433
F Non-controlling interests' share of changes in values, SEKm	–607	17	–846	599	–980	465
G Tax effect of changes in values 20.6%, SEKm	532	–538	849	–1,647	1,186	–1,310
A-B-C-D-E+F-G Total adjusted profit for the period, SEKm	1,182	1,383	2,354	2,367	5,113	5,126
H Total adjusted profit recalculated to annual profit, SEKm	4,727	5,534	4,707	4,734	5,113	5,126
I Changes in value for the parent company's shareholders, SEKm (B+C+D+E-F)	–2,581	2,610	–4,121	7,997	–5,759	6,359
J Tax effect of changes in value, SEKm (G)	532	–538	849	–1,647	1,186	–1,310
K Calculated annual profit, SEKm (H+I+J)	2,678	7,606	1,435	11,084	540	10,175
L Equity attributable to the parent company's shareholders at the end of the period according to the balance sheet, SEKm	89,120	86,717	89,120	86,717	89,120	90,194
M Equity attributable to the parent company's shareholders at the beginning of the period according to the balance sheet, SEKm	89,330	83,788	90,194	77,606	86,717	77,606
N Average equity, SEKm (L+M)/2	89,225	85,253	89,657	82,161	87,918	83,900
K/N Return on equity, %	3.0%	8.9%	1.6%	13.5%	0.6%	12.1%
Return on total assets, % A Profit before tax for the period during the period according to the income statement, SEKm B Net financial items during the period according to the income	–1,454	4,118	–1,737	11,090	161	12,988
statement, SEKm C Changes in value of investment properties, realised and unrealised	–732	–491	–1,383	–918	–2,495	–2,031
during the period according to the income statement, SEKm	–2,645	2,258	–4,220	5,623	–4,312	5,530
D Profit from development properties during the period according to the income statement, SEKm	–7	25	222	24	307	110
E Changes in value of derivatives during the period according to the income statement, SEKm	279	513	104	1,200	521	1,617
F Changes in value in participations in profit from associated companies/ joint ventures during the period according to the income statement, SEKm	–814	–169	–1,074	1,750	–3,256	–433
A-B-C-D-E-F Total adjusted profit for the period, SEKm	2,465	1,981	4,613	3,412	9,396	8,195
G Total adjusted profit recalculated to annual profit, SEKm		7,925	9,225	6,824	9,396	8,195
H Changes in value, SEKm (C+D+E+F)	–3,187	2,627	–4,967	8,596	–6,739	6,824
I Calculated annual profit, SEKm (G+H)	6,671	10,552	4,258	15,420	2,656	15,019
J Total assets at the end of the period, SEKm	269,244	253,875	269,244	253,875	269,244	263,775
K Total assets at the beginning of the period, SEKm	267,864	242,355	263,775	229,933	253,875	229,933
L Average total assets, SEKm (J+K)/2	268,554	248,115	266,510	241,904	261,560	246,854
I/L Return on total assets, %	2.5%	4.3%	1.6%	6.4%	1.0%	6.1%
Interest coverage ratio, times
A Profit including changes in value and tax in associated companies during the period according to the income statement, SEKm	919	1,322	2,156	4,244	3,644	5,732
B Net financial items during the period according to the income statement, SEKm	–732	–491	–1,383	–918	–2,495	–2,031
C Leases/ground rent during the period according to the income statement, SEKm	–21	–19	–40	–37	–79	–76
D Changes in value of financial investments during the period, SEKm	5	–39	–62	–32	–194	–164
E Changes in value and tax in participations in profit from associated companies/ joint ventures during the period according to the income statement, SEKm	–736	–323	–1,145	1,077	–3,150	–927
(A-(B-C)+D-E)/-(B-C-D) Interest coverage ratio, times		4.8	3.6	4.7	4.1	4.7

CONTD. FINANCIAL KEY RATIOS	2023 April-June	2022 April-June	2023 Jan-June	2022 Jan-June	2022/2023 July-June	2022 Jan-Dec
Equity/assets ratio, %
A Equity including non-controlling interests at the end of the period
according to the balance sheet, SEKm	102,049	98,965	102,049	98,965	102,049	102,909
B 50% of hybrid capital according to the balance sheet, SEKm	2,618	4,539	2,618	4,539	2,618	2,471
C Total equity and liabilities at the end of the period according to the balance sheet, SEKm	269,244	253,875	269,244	253,875	269,244	263,775
(A+B)/C Equity/assets ratio, %	38.9%	40.8%	38.9%	40.8%	38.9%	40.0%
Debt/equity ratio, times
A Interest-bearing liabilities at the end of the period according to the balance sheet, SEKm	141,668	130,020	141,668	130,020	141,668	135,252
B 50% of hybrid capital according to the balance sheet, SEKm	2,618	4,539	2,618	4,539	2,618	2,471
C Equity including non-controlling interests at the end of the period according to the balance sheet, SEKm	102,049	98,965	102,049	98,965	102,049	102,909
(A-B)/C Debt/equity ratio, times	1.4	1.3	1.4	1.3	1.4	1.3
Net debt, SEKm A Interest-bearing liabilities at the end of the period according to the balance sheet, SEKm	141,668	130,020	141,668	130,020	141,668	135,252
B 50% of hybrid capital according to the balance sheet, SEKm	2,618	4,539	2,618	4,539	2,618	2,471
C Cash and cash equivalents and financial investments at the end of the period according to the balance sheet, SEKm	6,879	7,511	6,879	7,511	6,879	6,553
A-B-C Net debt, SEKm	132,171	117,971	132,171	117,971	132,171	126,228
EBITDA, SEKm A Profit from property management during the period according to the income statement, SEKm	1,655	1,645	3,302	3,167	6,794	6,659
B Profit from sale of development properties during the period according to the income statement, SEKm	–7	25	222	24	307	110
C Net financial items during the period according to the income statement, SEKm	–732	–491	–1,383	–918	–2,495	–2,031
A+B-C EBITDA, SEKm	2,380	2,161	4,906	4,108	9,597	8,800
EBITDA, SEKm converted on a full-year basis	9,541	8,568	9,590	8,193	9,597	8,800
Net debt to total assets, %
A Net debt, SEKm	132,171	117,971	132,171	117,971	132,171	126,228
B Total equity and liabilities at the end of the period according to the balance sheet, SEKm	269,244	253,875	269,244	253,875	269,244	263,775
A/B Net debt to total assets, %	49.1%	46.5%	49.1%	46.5%	49.1%	47.9%
Net debt/EBITDA, times
A Average net debt, SEKm	130,689	115,069	129,199	113,460	125,071	117,589
B EBITDA, SEKm converted on a full-year basis	9,541	8,568	9,590	8,193	9,597	8,800
A/B Net debt/EBITDA, times		13.4	13.5	13.8	13.0	13.4

DEFINITIONS

The company presents a number of financial metrics in the interim report that are not defined according to IFRS (so-called Alternative Performance Measures according to ESMA's guidelines). These performance measures provide valuable supplementary information to investors, the company's management and other stakeholders since they facilitate effective evaluation and analysis of the company's financial position and performance. These alternative performance measures are not always comparable with meas-

SHARE-RELATED

Equity per share, SEK

Shareholders' equity attributable to parent company's shareholders in relation to the number of outstanding shares at the end of the period.

Profit from property management per share, SEK

Profit from property management attributable to parent company's shareholders in relation to the average number of shares.

Average number of shares

The number of outstanding shares at the start of the period, adjusted by the number of shares issued during the period weighted by the number of days that the shares have been outstanding in relation to the total number of days during the period.

Long-term net asset value per share (NAV), SEK

Equity attributable to parent company's shareholders per share with reversal of interest rate derivatives and deferred tax according to balance sheet.

Profit after tax per share, SEK

Profit attributable to the parent company's shareholders in relation to the average number of shares.

PROPERTY-RELATED

Yield, %

Estimated net operating income on an annual basis in relation to the fair value of the properties at the end of the period.

Net operating income, SEKm

Rental income minus property costs.

Economic occupancy rate, % 1)

Contracted rent for leases which are running at the end of the period in relation to rental value.

Development properties

Refers to properties constructed with the intention of being sold after completion.

Property portfolio

Refers to both investment properties and development properties.

Property category

Classified according to the principal use of the property. There is a breakdown into office, retail, residential, industrial/logistics and other properties. Other properties include hotel, educational, care, warehouse and mixed-use properties. The property category is determined by what the property is mostly used for.

Property costs, SEKm

This item includes direct property costs, such as operating expenses, media expenses, maintenance and property tax.

Investment properties

Refers to properties that are held with the objective of generating rental income or an increase in value or a combination of these.

Rental value, SEKm 1)

Contracted rent and estimated market rent for vacant premises.

Surplus ratio, %

Net operating income in relation to rental income.

ures used by other companies and shall therefore be considered as a complement to measures defined according to IFRS. Fastighets AB Balder will apply these alternative performance measures consistently over time. Unless otherwise specified, the key ratios are alternative performance measures according to ESMA's guidelines. A description follows below of how Fastighets AB Balder's key ratios are defined and calculated.

FINANCIAL

Return on equity, %

Profit after tax in relation to average equity. The profit was converted to a full-year basis in the interim accounts without taking account of seasonal variations that normally arise in the operations, with the exception of changes in value.

Return on total assets, %

Profit before tax with addition of net financial items in relation to average total assets. The profit was converted to a full-year basis in the interim accounts without taking account of seasonal variations that normally arise in the operations, with the exception of changes in value.

Net debt to total assets, %

Net debt in relation to total assets.

EBITDA

Profit from property management plus the net profit from the sale of development properties with reversal of net financial items. EBITDA has been converted to a full-year basis in interim accounts, with the exception of the net profit from the sale of development properties.

Profit from property management, SEKm

Profit including changes in value and tax in associated companies, with reversal of changes in value and tax in participations in profit from associated companies. When calculating the profit from property management, attributable to parent company's shareholders, the profit from property management is also reduced by the participation of non-controlling interests.

Hybrid capital

A bond with a maturity of 60 years. The bond is reported as interest-bearing liability, but is treated as 50% equity by the rating agencies.

Net debt, SEKm

Interest-bearing liabilities minus cash and cash equivalents, financial investments and 50% of the hybrid capital, which is treated by the rating agencies as 50% equity.

Net debt/EBITDA, times

Average net debt in relation to EBITDA.

Interest coverage ratio, times

Profit including changes in value and tax in associated companies with reversal of net financial items excluding ground rents and changes in value of financial investments and changes in value and tax as regards participation in profits of associated companies, in relation to net financial items excluding ground rents and changes in value of financial investments.

Debt/equity ratio, times

Interest-bearing liabilities decreased by 50% of hybrid capital in relation to shareholders' equity, including non-controlling interests.

Equity/assets ratio, %

Shareholders' equity including non-controlling interests and 50% of hybrid capital in relation to the balance sheet total at the end of the period.

1) This key ratio is operational and is not considered to be an alternative performance measure according to ESMA's guidelines.

CONTACT

For additional information, please contact: CEO Erik Selin,telephone +46 31-10 95 92 CFO Ewa Wassberg, telephone +46 31-351 83 99.

FINANCIAL INFORMATION

Overall information about the company's operations, Board of Directors and management, financial reporting and press releases, may be found on Balder's website, balder.se.

CALENDAR

Interim report Jan–Sept 2023 27 October 2023 Year-end report 2023 9 February 2024

This report is a translation of the Swedish Interim Report January-June 2023. In the event of any discrepancies between this report and the Swedish version, the latter will have priority.

HEAD OFFICE	Parkgatan 49 · Box 53 121 · 400 15 Gothenburg Tel: +46 31-10 95 70
LETTING	Tel: +46 20-151 151
CUSTOMER SERVICE	Tel: +46 774-49 49 49
REGION
GOTHENBURG	Parkgatan 49 · Box 53 121 · 400 15 Göteborg · Tel: +46 31-10 95 70
	Timmervägen 9 A · 541 64 Skövde · Tel: +46 500-47 88 50
HELSINKI	Panuntie 4 · PO Box 401 · 00610 Helsinki · Tel: +358-201 34 4000
NORTH	Forskarvägen 27 · 804 23 Gävle · Tel: +46 26-54 55 80
	Sandbäcksgatan 5 · 653 40 Karlstad · Tel: +46 54-14 81 80
	Affärsgatan 4 D · 862 31 Kvissleby · Tel: +46 60-52 45 50
STOCKHOLM	Tulegatan 2A · 113 58 Stockholm · Tel: +46 8-735 37 70
	Vårby Allé 18 · 143 40 Vårby · Tel: +46 8-735 37 70
SOUTH	Kalendegatan 26 · 211 35 Malmö · Tel: +46 40-600 96 50
	Esplanaden 15 · 265 34 Åstorp · Tel: +46 42-569 40
	Bryggaregatan 7 · 252 27 Helsingborg · Tel: +46 42-17 21 30
COPENHAGEN	Vesterbrogade 1 E, 5. sal · 1620 København V · Tel: +45-88 13 61 51
EAST	Hospitalsgatan 11 · 602 27 Norrköping · Tel: +46 11-15 88 90
	Rönnbergagatan 10 · 723 46 Västerås · Tel: +46 21-10 98 90

FASTIGHETS AB BALDER (PUBL) BALDER.SE · INFO@BALDER.SE · ORG.NR: 556525-6905