INTERIM REPORT JANUARY–JUNE 2023

THE PERIOD January–June 2023

Income amounted to MSEK 1,786 (1,505), up 18.7 percent.
Net operating income amounted to MSEK 1,161 (973) or SEK 6.08 per share (5.09), up 19.4 percent.
Profit from property management amounted to MSEK 621 (763) or SEK 3.10 per share (3.89), down 20.3 percent.
Changes in the value of properties had an impact of MSEK –720 (1,214) on earnings.
Loss for the period amounted to MSEK –91 (2,305) or SEK –0.68 per share before (11.96) and after (11.93) dilution.
Distributable cash flow amounted to MSEK 635 (838) or SEK 3.32 per share (4.39), down 24.4 percent.

THE QUARTER April–June 2023

Income amounted to MSEK 891 (791), up 12.7 percent.
Net operating income amounted to MSEK 606 (523) or SEK 3.17 per share (2.74), up 15.8 percent.
Profit from property management amounted to MSEK 318 (403) or SEK 1.59 per share (2.06), down 22.8 percent.
Changes in the value of properties had an impact of MSEK –199 (350) on earnings.
Profit for the quarter amounted to MSEK 242 (981) or SEK 1.14 per share before (5.09) and after (5.07) dilution.
Distributable cash flow amounted to MSEK 435 (582) or SEK 2.28 per share (3.05), down 25.2 percent.

SEK 49.1 billion on June 30, 2023.

KEY FIGURES

	Jan–Jun		Apr–Jun		Rolling	Full-year
	2023	2022	2023	2022	12 months	2022
Income, MSEK	1,786	1,505	891	791	3,433	3,151
Net operating income, MSEK	1,161	973	606	523	2,281	2,092
Surplus ratio, %	65.0	64.7	68.0	66.1	66.4	66.4
Profit from property management1, MSEK	621	763	318	403	1,392	1,533
Profit/loss, MSEK	–91	2,305	242	981	–702	1,694
Interest-coverage ratio, multiple	2.2	3.5	2.4	3.4	2.4	3.4
Distributable cash flow, MSEK	635	838	435	582	1,393	1,596
Property value on balance-sheet date, MSEK	41,043	41,341	41,043	41,341	41,043	40,446
NAV on balance-sheet date, MSEK	18,511	20,106	18,511	20,106	18,511	19,250
Net loan-to-value ratio of properties on balance-sheet date, %	58.2	55.1	58.2	55.1	58.2	57.7
Key figures per share
Profit from property management1, SEK	3.10	3.89	1.59	2.06	7.00	7.80
Distributable cash flow, SEK	3.32	4.39	2.28	3.05	7.29	8.35
Profit/loss after dilution, SEK	–0.68	11.93	1.14	5.07	–4.02	8.61
NAV on balance-sheet date, SEK	96.91	105.25	96.91	105.25	96.91	100.78

1) From October 1, 2022, the former earnings measure Profit from property management was renamed Profit after financial income and expenses, and the former earnings measure Profit from property management, excluding changes in value and tax in joint ventures was renamed Profit from property management. This change provides better comparability with other listed Swedish property companies with significant holdings of participations in joint ventures.

SIGNIFICANT EVENTS DURING AND AFTER THE QUARTER

Three-year, green, senior unsecured bonds of MSEK 850 with an interest rate of STIBOR 3M+550 basis points were issued in April. In connection with the issue, bonds outstanding of MSEK 825, with maturity in April 2024, were repurchased.
In April, ten properties with warehouses and light industry in Österåker, Malmö, Helsingborg and Jönköping were divested and vacated. The selling price amounted to MSEK 546. The properties had an annual rental value of MSEK 40.

DIVESTMENT OF PROPERTIES IN SWEDEN FOR MSEK 546

DURING THE QUARTER, Nyfosa divested ten properties with warehouse and light industry in two transactions. The selling price was MSEK 546 and the annual rental value MSEK 40. Six of the properties are located in Österåker, two in Malmö, one in Helsingborg and one in Jönköping.

The properties had a leasable area of 55 thousand sqm and an economic occupancy rate of 100 percent. The average remaining lease term was 4.2 years. Closing took place in April 2023.

COMMENTS FROM THE CEO

During the quarter, revenues increased, net operating income improved, and the underlying business was stable. We had a strong focus on our loan portfolio and refinanced SEK 5.7 billion during and following the quarter. Sales of MSEK 546 contributed to a gain of MSEK 45 in realized changes in value. Meanwhile, interest rate hikes have continued to negatively affect profits and earnings.

Property management

We made a number of new leases in both Finland and Sweden but a few tenants gave notice on their leases which resulted in marginally negative net leasing totaling MSEK –5 for the quarter and MSEK –2 for the period. Overall, we are encountering continued stable demand for our premises, despite the leasing processes slowing down somewhat. Rental income increased by 12.7 percent and net operating income by 15.8 percent. We invested MSEK 227 in our properties, which mostly concerned adapting properties for tenants. The largest ongoing adaptation is for Mården in Luleå, where the municipality will move into the property in the third quarter of 2023 on a 10-year lease. In Jyväskylä, Finland, expansion and renovation of a school were completed and the tenant moved in on a 15-year lease.

Refinancing

During and after the quarter, we carried out refinancings totaling MSEK 5,764, of which MSEK 4,939 is the refinancing of bank debt and MSEK 825 the refinancing of bonds maturing in April 2024. This means MSEK 275 in bonds remains to be refinanced no later than April 2024 and beyond that we have the next maturity on bank loans falling in December 2024. These refinancings increased liquidity by MSEK 230.

Property valuations

The entire property portfolio is valued externally on a quarterly basis. The yield requirements in the property valuations increased by 0.1 percentage points to 6.6 percent of the portfolio. Increases in net operating income continue to act as a positive counterweight. Changes in value ended at minus MSEK 199, which is a decrease of 0.5 percent for the quarter. Since the year-end valuation on 31 December 2021, the yield requirement has increased from 5.8 to 6.6 percent.

Market

Despite a cautious transaction market, Nyfosa divested properties for MSEK 546 in two transactions. These were low-yield properties that we sold above book value, which contributed to a gain of MSEK 45 in realized changes in value during the quarter. We continue to be active on the market, assessing interesting transactions on both the buy and sell sides.

We are living through very uncertain times, where interest rate changes are critical to the entire real estate sector. This can be much discussed, however the conclusion for now is that the future remains uncertain and it is impossible to form a completely clear view. We are focusing on working with our tenants, our properties, our business and what we can influence. Nyfosa has a stable portfolio giving good returns, which can withstand strong headwinds and sooner or later will enjoy prevailing winds.

Stina Lindh Hök, CEO

TARGETS AND DIVIDEND POLICY

F I N A N C I A L T A R G E T S

Growth in cash flow per share Annual growth in distributable cash flow per share of 10 percent over time.

DIVIDEND PER SHARE

Dividend policy

At least 40 percent of the distributable cash flow is to be distributed to the owners. Dividends are, on each occasion, to be considered in light of the company's business opportunities and may comprise a distribution in kind, buyback or cash dividend.

Dividends 2022

SEK 4.00

Equity/assets ratio At least 25 percent in the long term.

Loan-to-value ratio Not to exceed 65 percent.

FINANCIAL RISK LIMITS

Interest-coverage ratio Long term at least a multiple of 2.

SUSTAINABILITY TARGETS

Sustainability certification

By 2025, properties corresponding to 50 percent of the property value will have sustainability certification and 100 percent by 2030.

Outcome 2022

70 properties with a value of SEK 11.8 billion had sustainability certification, corresponding to 29 percent of the property value.

Streamlined consumption

By 2025, energy consumption per sqm will be reduced by 10 percent compared with 2020.

Outcome 2022

Energy consumption in the starting portfolio for 2020 was 118 kWh per sqm. Energy consumption in 2022 was 111 kWh per sqm, corresponding to a 6 percent decline for the comparable property portfolio1.

TARGETS 2025 LONG-TERM TARGETS

Carbon emissions

Nyfosa will act to minimize the operation's carbon emissions.

Performance 2022

Carbon emissions in 2022 in the comparable property portfolio declined1 43 percent per sqm compared with 2021. The decline was primarily an effect of investments in renewable energy and greater focus on streamlined consumption.

1) Comparable property portfolio refers to the properties that Nyfosa has owned for the entire period and the comparative period. Properties bought and sold during the period are excluded.

The sustainability targets are measured and updated on an annual basis.

PROFIT

JANUARY–JUNE 2023

Amounts in parentheses refer to the corresponding period in the preceding financial year.

Income

Income amounted to MSEK 1,786 (1,505), up 18.7 percent compared with last year. The larger portfolio was the main reason for the growth. Growth in the like-for-like portfolio amounted to MSEK 125.

The economic leasing rate for at the end of the period was 91.7 percent (93.2). The reason for the lower economic leasing rate in relation to the same period last year is not lower income or less leased area, but is a result of an adjustment to market rent levels for the vacant area in the portfolio.

	Jan–Jun
Income, MSEK	2023	2022
Like-for-like portfolio	1,477	1,352
Acquisitions and divestments	309	152
Total	1,786	1,505

Rent receivables for rents invoiced were settled in accordance with the contractual terms, except for a small number of invoices. 91 percent of the annual rental income has clauses on annual index supplements. The majority of these index supplements refer to 100 percent of the base rent and are to follow the CPI or equivalent.

Property expenses

Operating expenses amounted to MSEK 395 (325), which is an increase of 21.4 percent. The increase was due to a larger portfolio and higher energy prices in both Sweden and Finland. About half of the costs for electricity, heating and cooling are charged on to tenants.

Maintenance costs amounted to MSEK 80 (76), which is an increase of 5.2 percent compared with last year. Costs for property administration amounted to MSEK 68 (61), with the increase due to a larger property portfolio.

Net operating income

Net operating income amounted to MSEK 1,161 (973), up 19.4 percent. The surplus ratio was 65.0 percent (64.7).

	Jan–Jun
Net operating income, MSEK	2023	2022
Like-for-like portfolio	935	868
Acquisitions and divestments	226	105
Total	1,161	973

Central administration and share in profit of joint ventures

Costs for central administration amounted to MSEK 93 (78), with the increase due to a larger property portfolio.

Share in profit of joint ventures amounted to MSEK 109 (562), comprising profit from property management of MSEK 120 (121), changes in value and tax of MSEK –15 (441) and other MSEK 3 (0).

Financial income and expenses

Financial income and expenses amounted to MSEK –573 (–258). The increase was due to higher interest rates and a higher net debt, amounting to MSEK 23,895 (22,775) on the balance-sheet date. The average interest, excluding opening charges, amounted to 4.7 percent (2.1) on the balance-sheet date.

As per June 30, 42 percent of the debt portfolio was hedged with interest-rate caps or interest-rate swaps. The

CONDENSED STATEMENT OF PROFIT/LOSS

MSEK Income Property expenses Operating expenses	2023 1,786 -395 -80 -82	2022 1,505 -325 -76 -68





Maintenance costs
Property tax
Property administration	-68	-61
Net operating income	1,161	973
Central administration	-93	-78
Other operating income and expenses	6	5
Share in profit of joint ventures	109	562
- of which, profit from property management	120	121
- of which, changes in value	33	588
- of which, tax	-48	-147
- of which, other	3	0
Financial income and expenses	-573	-258
Profit after financial income and expenses1	610	1,204
- Of which, profit from property	621	763
management1
Changes in value of properties	-720	1,214
Changes in value of financial instruments	17	177
Profit/loss before tax	-93	2,595
Tax	2	-290
Profit/loss	-91	2,305

average interest-rate cap was 1.56 percent (1.56) and the average interest-rate swap was 1.85 percent (1.57).

The interest-coverage ratio for the period was a multiple of 2.2 (3.5), while the interest-coverage ratio for the last 12 months was a multiple of 2.4.

	Jan–Jun
Financial income and expenses, MSEK	2023	2022
Interest income and interest expenses	–537	–223
Allocated borrowing costs, etc.	–36	–35
Total	–573	–258

Profit from property management

Profit from property management amounted to MSEK 621 (763) or SEK 3.10 per share (3.89), down 20.3 percent. The lower profit from property management was primarily impacted by higher energy prices and interest rate levels, which was partly offset by rent indexation.

Changes in value

Changes in values of properties amounted to MSEK –720 (1,214).

The yield requirements of the valuations increased during the period as an effect of macroeconomic developments. The negative valuation effect caused by the higher yield requirements was partly offset by the improved future net operating income due to new leases, renegotiations and rent indexation.

The weighted yield requirement for externally valued properties on June 30, 2023 was 6.59 percent. In the most recent valuation on March 31, 2023, the weighted yield requirement was 6.51 percent and on December 31, 2022 was 6.39 percent.

All properties are valued by authorized appraisers at every quarterly closing, except for the properties that were closed on or divested in the past quarter. These properties are recognized at acquisition cost and selling price, respectively.

Changes in value from financial instruments amounted to MSEK 17 (177) and refer to interest-rate caps and interest-rate swaps.

Tax

Tax for the period amounted to MSEK 2 (–290) and largely comprised positive deferred tax attributable to the negative revaluation of the property portfolio. The effective tax rate was 1.8 percent (11.2). The deviation from the parent company's nominal tax rate of 20.6 percent was mainly due to non-taxable realized gains during the period, reversal of deferred tax when properties were vacated and the fact that profit from participations in joint ventures comprised profit after tax, and thus did not constitute taxable income for Nyfosa.

Profit for the period

Loss for the period amounted to MSEK 91 (2,305) or SEK –0.68 per share before dilution (11.96) and SEK –0.68 after dilution (11.93). The decrease was mainly an effect of higher interest rate levels and energy prices as well as negative changes in value of properties.

Distributable cash flow

Distributable cash flow amounted to SEK 3.32 per share (4.39).

INCOME PER QUARTER NET OPERATING INCOME PER QUARTER PROFIT FROM PROPERTY MANAGEMENT PER QUARTER

QUARTER APRIL–JUNE 2023

The income amounted to MSEK 891 (791), which is an increase of 12.7 percent. Net operating income amounted to MSEK 606 (523), up 15.8 percent. The surplus ratio for the quarter was 68.0 percent (66.1).

Costs for central administration amounted to MSEK 46 (43). Participations in joint ventures contributed a share in profit of MSEK 154 (296). Financial income and expenses amounted to MSEK –305 (–142).

Profit from property management amounted to MSEK 318 (403) or SEK 1.59 per share (2.06), down 22.8 percent.

The effect of revaluation of properties amounted to MSEK –199 (350), of which realized changes in value amounted to MSEK 45 (138). The negative value trend was mainly due to changed yield requirements from an average of 6.51 percent last quarter to 6.59 percent at the end of the second quarter.

Revaluations of financial instruments derivatives impacted profit by MSEK 47 (67).

Tax amounted to MSEK –15 (–73). The effective tax rate was 5.8 percent (6.9).

Profit for the quarter amounted to MSEK 242 (981) or SEK 1.14 per share after dilution (5.07).

OPTIMIZING OPERATIONS SAVES ENERGY IN MALMÖ

In February 2022, the management team initiated general optimization of the entire portfolio of 74 properties in Malmö. This was one of many steps in the ongoing efforts to reduce Nyfosa's energy consumption and carbon emissions. Energy-efficient operations means adapting heating, cooling, lighting and ventilation to the needs of the tenants and the properties, all of which may vary greatly from building to building and among individual tenants. To date, the optimization has contributed to a 2 million kWh reduction in energy consumption, corresponding to a 7 percent reduction for the Malmö portfolio.

CASH FLOW

Cash flow for the period

During the period, cash flow from operating activities amounted to MSEK 990 (1,084), of which MSEK 180 (225) was dividends received from joint ventures.

Cash flow was charged with investing activities of MSEK –860 (–2,856). Taking possession of and vacating properties, both directly and indirectly via companies, impacted cash by a net MSEK –399 (–2,512). Investments in existing properties amounted to MSEK –420 (–227). Investments in participations in joint ventures amounted to MSEK –40 (–96).

Cash flow from financing activities amounted to MSEK –35 (1,996) and was attributable to a net increase in interest-bearing liabilities of MSEK 334 (2,327), repurchases and new issue of warrants of MSEK –4 (4) and dividends to shareholders of MSEK –372 (–325).

Total cash flow for the period was MSEK 95 (224).

	Jan–Jun
Total cash flow, MSEK	2023	2022
Cash flow from operating activities	990	1,084
– of which distributable cash flow	635	838
Cash flow from investing activities	-860	-2,856
Cash flow from financing activities	-35	1,996
Total cash flow	95	224

Distributable cash flow

The distributable cash flow corresponds to cash flow from operating activities before changes in working capital and is based on profit before tax adjusted for non-cash items, such as revaluation effects and share in profit of joint ventures.

Dividends received from participations in joint ventures, interest paid to hybrid bond holders and tax paid are included in the distributable cash flow.

Growth in cash flow per share

The company's target is to achieve annual growth in distributable cash flow per share of 10 percent over time.

Distributable cash flow amounted to SEK 7.29 per share for the last 12 months compared with SEK 8.35 per share for the 2022 financial year, which is a decline of 13 percent. The decline was primarily impacted by higher interest rate levels and energy prices, which was partly offset by rent indexation during the period.

DISTRIBUTABLE CASH FLOW

	Jan–Jun			Apr–Jun
MSEK	2023	2022	2023	2022
Profit/loss before tax	-93	2,595	255	1,055
Adjustments for non-cash items	624	-1,918	15	-694
Dividend from holdings in joint ventures	180	225	180	225
Interest paid to hybrid bond holders	-32	-10	-17	-3
Income tax paid	-44	-54	0	0
Distributable cash flow	635	838	435	582
– per share, SEK	3.32	4.39	2.28	3.05

DISTRIBUTABLE CASH FLOW

Dividend received from joint ventures, MSEK
Distributable cash flow per share, SEK

EARNINGS CAPACITY

CURRENT EARNINGS CAPACITY

Jul 1, 2023	Apr 1, 2023
3,881	3,873
-341	-338
3,541	3,536
-1,002	-982
-132	-130
2,407	2,423

-161	-150
221	235
-1,210	-1,103
1,274	1,406
-63	-58
1,212	1,348
6.34	7.06

Current earnings capacity is presented on a 12-month basis and is to be considered solely as a hypothetical instantaneous impression on a given date. It is presented only for illustrative purposes. The aim is to present annualized income and expenses based on the property portfolio, borrowing costs, capital structure and organization at a given point in time. The earnings capacity does not include an assessment of future periods in respect of rents, vacancy rates, property expenses, interest rates, changes in value or other factors impacting earnings. The current earnings capacity must be considered together with other information in the interim report.

Information used as the basis for assessing current earnings capacity

properties owned on the balance-sheet date, which means that agreed possessions and vacancies thereafter are not taken into account;
rental value is based on annual contractual rental income from current lease on July 1;
the vacancy amount also includes allocated rent discounts under current lease;
costs for operations, maintenance and property administration are based on actual outcome for the most recent 12 months, adjusted for the holding period;
utilities expenses are based on actual outcome for the most recent 24 months, adjusted for the holding period;
expenses for property tax are based on the current tax assessment values;
costs for central administration, including other operating income and expenses, are based on actual outcome for the most recent 12 months;
participations in joint ventures, profit from property management, calculated according to the same methodology as for Nyfosa;
the assessment of earnings capacity does not include any financial income;
financial expenses have been calculated on the basis of the company's average interest on the balance-sheet date of 4.7 percent, with additions for allocated opening charges. The item also includes ground rent of MSEK 17;
interest on hybrid bonds has been calculated based on the company's average interest on the balance-sheet date of 8.2 percent;
the exchange rates on the balance-sheet date of EUR/ SEK 11.79 and NOK/SEK 1.01 were used to translate foreign operations. The earnings capacity as of 1 April 2023 used the exchange rate EUR/SEK 11.28 and NOK/ SEK 1.00, respectively.

EARNINGS CAPACITY

Current earnings capacity per share, SEK

KEY FIGURES EARNINGS CAPACITY

	Jun 30, 2023	Mar 31, 2023
Property value on balance-sheet date, MSEK	41,043	41,182

	Jul 1, 2023	Apr 1, 2023
Rental value, MSEK	3,881	3,873
Leasable area, 000s sqm	3,020	3,075
No. of properties on balance-sheet date	512	522
Economic occupancy rate, %	91.7	91.9
Remaining lease term, years	3.6	3.8
Surplus ratio, %	68.0	68.5
Yield, %	5.9	5.9
Yield, excl. property admin, %	6.2	6.2

FINANCING

Nyfosa finances its assets through equity, bank loans with Nordic banks and loan funds, and hybrid bonds and bonds issued in the Swedish capital market. Equity attributable to the Parent Company's shareholders amounted to MSEK 17,689 (18,906) on the balance-sheet date, of which hybrid bonds were MSEK 763 (800).

Interest-bearing liabilities excluding lease liabilities amounted to MSEK 24,697 (23,541), including allocated arrangement fees, of which liabilities pledged as collateral to banks and loan funds represented 93 percent (93), corresponding to MSEK 23,072 (21,941), and senior unsecured bonds 7 percent (7), corresponding to MSEK 1,625 (1,600).

The bonds consist of bonds issued under a green finance framework. This framework has been drawn up in accordance with the Green Bond Principles set by the International Capital Markets Association (ICMA) and has been audited by an independent third party, CICERO Shades of Green, with the opinion Medium Green.

The net loan-to-value ratio in relation to the properties' market values was 58.2 percent (55.1).

To support liquidity and growth, the company has four prearranged lines of credit with banks, which have not always been fully utilized. The scope in these revolving credit facilities can amount to a maximum of MSEK 2,515 (3,301). This means that, against collateral in existing properties, Nyfosa can rapidly increase its borrowing at fixed terms to, for example, finance property acquisitions. After having utilized the credit scope, the company has the opportunity to renegotiate credit facilities to a standard bank loan, at which point the unutilized portion of the facilities increases. On the balance-sheet date, the amount granted totaled MSEK 1,382 (955), of which MSEK 1,243 (351) was utilized and MSEK 139 (604) was unutilized. To utilize the remaining MSEK 1,133 (2,346), acquired properties are to be pledged as collateral.

In addition to revolving credit facilities, the company has unutilized overdraft facilities totaling MSEK 200 (200).

SOURCES OF FINANCING

Changes in interest-bearing liabilities

New bank loans of a MSEK 811 were raised during the period in connection with the financial closing of property acquisitions and refinancing of existing debt. Ongoing amortization and repayments of loans in connection with financial closing took place in the amount of MSEK 463. After the end of the period, MSEK 834 was refinanced, with maturity in November

KEY FIGURES FOR INTEREST-BEARING LIABILITIES

	Jun 30		Dec 31
	2023	2022	2022
Pledged liabilities, MSEK	23,072	21,941	22,433
Bonds, MSEK	1,625	1,600	1,600
Debt/equity ratio, multiple	1.4	1.2	1.3
Average interest1, %	4.7	2.1	3.5
Average fixed-rate period, years	0.7	1.1	1.0
Average loan maturity, years	2.8	3.4	3.2
Interest-rate hedged portion of liabilities, %	42	42	42
Average interest-rate cap, %	1.6	1.6	1.6
Average interest swap, %	1.8	1.6	1.6
Fair value of derivatives, MSEK	420	199	372

1) Interest expense excluding opening charges and ground rent.

REVOLVING CREDIT FACILITIES

MSEK	Frame work	Amount granted	Amount utilized	Unutilized amount
Total	2,515	1,382	1,243	139
AVAILABLE LIQUIDITY			Jun 30	Dec 31
MSEK		2023	2022	2022
Cash and cash equivalents		801	766	690
Unutilized revolving credit facility1		139	604	265
Unutilized overdraft facilities		200	200	200
Total		1,140	1,570	1,155

1) Unutilized and previously granted loans on the balance-sheet date with existing properties as collateral. The loans are available to the company at short notice.

CHANGES IN INTEREST-BEARING LIABILITIES

	Jan–Jun		Full-year
MSEK	2023	2022	2022
Interest-bearing liabilities at the beginning of the period	24,033	21,045	21,045
Bank loans raised	811	9,035	9,751
Repayment of bank loans	-463	-6,365	-6,770
Bonds issued	850	600	600
Bonds repurchased	-825	-873	-873
Changes in borrowing fees	11	-35	-13
Translation effect, currency	280	135	292
Interest-bearing liabilities at end of the period	24,697	23,541	24,033

Accordingly, the company does not have any refinancing requirements in 2023.

Bonds of MSEK 825 were repurchased on the basis of a new issue of green bonds of MSEK 850. On the balance-sheet date, the company had bonds totaling MSEK 1,625, of which MSEK 275 matures in April 2024, MSEK 500 in January 2025 and MSEK 850 in April 2026. The terms for the green senior unsecured bonds issued in April 2023 are a three-year maturity with a interest rate of STIBOR 3M+550 basis points.

Fixed-rate periods and exposure to interest-rate changes

Nyfosa mainly has floating interest rates in its loan agreements. Exposure to increases in interest rates is managed by making use of derivative instruments, currently interest-rate caps and swaps. The remaining term of signed derivative agreements was 1.7 years (2.7) on the balance-sheet date. Interest-rate caps offer the holder security in the form of a maximum impact on total interest expenses if STIBOR 3M and EURIBOR 6M rise. However, interest rates that do not reach the interest-rate cap will have full impact on earnings. The interest-rate cap is 1.5–2.0 percent (1.5–2.0), and an average of 1.56 percent (1.56).

Interest-rate swaps amounted to a nominal MSEK 1,688 (–). Under these derivatives, Nyfosa pays a fixed annual rate of 1.85 percent (1.57).

As per June 30, 2023, 42 percent (42) of the debt portfolio was hedged with an interest-rate cap or swap.

The sensitivity analysis shows that the estimate impact on earnings of STIBOR 3M and EURIBOR 6M changing 1.0 percentage point is an increase of MSEK 151 (223) in interest expenses, given existing derivative agreements. A rise in market rates of 2.0 percentage points would charge earnings with MSEK 303 (394), given existing derivative agreements. In both examples, the interest-rate cap means that the higher rate does not have a full impact on the statement of profit/loss.

SENSITIVITY ANALYSIS, INTEREST-RATE EXPOSURE

June 30, 2023

Earnings effect of change in average interest, MSEK3	Change	Jun 30, 2023
Interest expenses assuming current fixed-interest periods and changed interest rates1	+/–2% points	–303/+301
Interest expenses assuming current fixed-interest periods and changed interest rates1	+/–1% point	–151/+151
Interest expenses assuming change in average interest rate2	+/–1% point	–248/+248
Revaluation of fixed-income derivatives attributable to shift in interest rate curves	+/–1% point	+/–152

1) Taking into account existing derivative agreements.

2) Average rate increases/decreases by 1 percentage point. Increase/decrease does not take into account eventual effects of the derivative portfolio.

3) Each variable in the table below has been addressed individually and on the condition that the other variables remain constant. The analysis refers to liability against the wholly owned property portfolio and does not pretend to be exact. It is merely indicative and aims to show the most relevant, measurable factors in the specific context.

LOAN MATURITY AND FIXED-RATE PERIOD1

Year	Loan maturity, MSEK	Share, %	Interest-rate swaps, MSEK	Interest-rate caps, MSEK	Derivative vol umes, MSEK	Share of liabilities, %
Within 1 year	2,6472	11	0	2,697	2,697	11
1–2 years	8,481	34	500	4,929	5,429	22
2–3 years	3,657	15	0	0	0	0
3–4 years	7,274	29	1,188	1,150	2,338	9
4–5 years	102	0	0	0	0	0
>5 years	2,641	11	0	0	0	0
Total	24,802	100	1,688	8,776	10,464	42

1) Interest-bearing liabilities in the statement of financial position include allocated arrangement fees, which is the reason for the deviation between the table and the statement of financial position. 2) Bank loans of MSEK 834 mature in November 2023.

FIXED-RATE PERIOD

PROPERTY PORTFOLIO

Nyfosa has a diverse property portfolio due to the company's focus on cash flow rather than a specific property category, size or region. The company does not apply any restrictions to its investment strategy, but it does prioritize commercial properties in high-growth municipalities in Sweden and regional cities in Finland. It is here that the company can leverage favorable trends such as a growing population and developments in the local business community.

This geographic diversity in the portfolio provides a large contact network of potential tenants and property players. This breadth also spreads risks favorably, at the same time as properties outside the central areas of the major cities have relatively low rent levels and even demand. Nyfosa has high diversification even in terms of property categories with its property portfolio comprising offices, warehouses/logistics, industry and retail properties, focusing on the big-box and discount sectors.

At the end of the period, the property portfolio comprised 512 properties with a property value of MSEK 41,043, a rental value of MSEK 3,881 and a leasable area of 3,020 thousand sqm. In addition to the wholly owned property portfolio, Nyfosa owns 50 percent of the property companies Söderport in Sweden and Samfosa in Norway, for which Nyfosa's share of the property value amounts to SEK 8.0 billion. Söderport's and Samfosa's properties are not included in the tables and diagrams below but are presented separately on page 18.

Property categories

Offices

The office properties are situated in Swedish high-growth municipalities such as Karlstad, Luleå, Sundsvall, Västerås, Malmö and Växjö as well as Finnish regional cities such as Jyväskylä and Tampere. Office properties are of high quality and most are centrally located in each town.

Logistics/Warehouse

The logistics and warehouse premises are situated in towns such as Malmö, Haninge, Karlstad, Borås, Örebro and Växjö as well as regional cities in Finland. A considerable share of the properties are located in local and regional logistics hubs that are prime warehousing areas, and also industrial areas close to city centers.

Retail

The retail properties are primarily situated in expansive and popular big-box retail areas in attractive locations close to public transit. These commercial areas are primarily in Luleå, Borås, Västerås, Värnamo and Huddinge. Tenants include mainly established grocery, DIY and gardening and big-box retail. The retail properties are of generally high quality, offer considerable flexibility in terms of use and have a high average occupancy rate. Nyfosa views select retail properties to be a good complement to other property categories in the portfolio.

Industry

The industrial properties focusing on light industry are situated in high-growth regions in locations such as Växjö, Värnamo, Tampere, Kuopio and Oulu. A considerable portion of the properties are situated in attractive industrial areas with good access to public communication and a proximity to cities. A sizable portion of the properties are modern, flexible buildings. The tenants are typically active in such sectors as manufacturing and service.

Other

This category includes mixed properties with no clear category. There is a small number of properties, such as premises for hotel operations, schools, restaurants, healthcare and apartments. Properties in this category are located in regions with population growth, such as Karlstad, Uppsala, Luleå, Stockholm, Örebro, Malmö, Jyväskylä and Helsinki.

512 N O . O F PROPERTIES

SEK 13,588 P R O P E R T Y V A L U E PER SQM

R E N T A L V A L U E PER SQM

PROPERTY PORTFOLIO

							Eco
				Leasable			nomic
			No. of	area1 ,	Rental	Annual	occu	Lease
	Value,	SEK	proper	000s	value1 ,	income1 ,	pancy	term1 ,
	MSEK	per sqm	ties	sqm	MSEK	MSEK	rate1 , %	years
Region
Finland	8,602	16,272	92	529	997	885	88.9	3.3
Gothenburg	385	8,594	5	45	39	34	87.6	3.5
Malmö	2,793	11,635	51	240	251	230	92.5	4.0
Mälardalen	5,961	13,659	53	436	531	490	93.1	3.6
Coast of Norrland	5,253	12,873	70	408	471	430	91.7	3.7
Småland	3,542	9,762	70	363	351	326	93.2	4.3
Stockholm	5,079	21,812	41	233	385	349	91.8	4.2
Värmland	3,589	15,754	48	228	321	305	95.3	3.0
Other	5,839	10,832	82	539	537	491	92.1	3.6
Total	41,043	13,588	512	3,020	3,881	3,541	91.7	3.6

Property category
Offices	20,405	17,865	182	1,142	1,884	1,677	89.4	2.9
Logistics/ Warehouse	6,735	8,640	115	779	606	541	89.9	3.6
Retail	5,485	13,080	81	419	553	523	95.7	4.6
Industry	3,428	9,120	78	376	363	351	96.8	4.9
Other	4,990	16,437	56	304	476	448	94.7	4.3

1) According to current lease on July 1, 2023.

Total 41,043 13,588 512 3,020 3,881 3,541 91.7 3.6 Finland Gothenburg Malmö Mälardalen Coast of Norrland Småland Stockholm Värmland Other Offices Logistics/Warehouse Retail Industry Other 41,043 MSEK 41,043 MSEK 3,881 MSEK 3,881 MSEK PROPERTY VALUE BY CATEGORY PROPERTY VALUE BY REGION RENTAL VALUE BY CATEGORY RENTAL VALUE BY REGION 50% 21% 26% 1% 7% 1% 6% 15% 14% 13% 12% 49% 16% 9% 9% 16% 13% 12% 10% 14% 8% 9% 8% 9% 12% 14% 14% 12%

RENTAL VALUE BY TYPE OF PREMISES

Tenant structure

The rental value on July 1, 2023, amounted to MSEK 3,881, of which vacancy rent and discounts were MSEK 341. 91 percent of Nyfosa's rental income is subject to index supplements. Nyfosa had 6,512 leases, of which 2,518 were leases for garages and parking spaces. The average lease term was 3.6 years. The lease term in the Finnish portfolio was 3.3 years. A large share of rental income in the Finnish portfolio refers to "until further notice leases" that run on a 12-month basis, which is a common form of agreement in Finland. Tenants lease their premises on average for a longer period.

Nyfosa has a highly diverse tenant structure featuring only a small number of dominant tenants. The ten largest tenants represent 11 percent of rental income and are

distributed between 169 leases. Among the largest tenants are the Swedish Transport Agency, Delta Auto, Saab, Telia, Social Insurance Agency, City Gross, the Swedish Police, the Swedish Public Employment Service and the City of Helsinki. Of rental income, tax-financed rent represented 25 percent.

14 green appendices were added during the period when new leases were signed or leases were renegotiated, and Nyfosa had a total of 234 green appendices on July 1, 2023, corresponding to an annual rental value of MSEK 346. The aim of these green appendices is to identify and follow up on various initiatives to reduce energy consumption in premises, such as more efficient heating and lighting.

Net leasing

Several leases were signed in both Finland and Sweden, although a few tenants gave notice on their leases which resulted in a marginally negative net leasing. Leasing operations in the quarter resulted in net leasing of MSEK –5, with new leases signed for MSEK 48, terminations amounted to MSEK 45 and confirmed tenant bankruptcies amounted to MSEK 8. Net leasing totaled MSEK +3 excluding bankruptcies. Net leasing for the period amounted to MSEK –2, with new leases signed for MSEK 111, terminations amounted to MSEK 104 and confirmed tenant bankruptcies amounted to MSEK 9. Excluding bankruptcies, net leasing totaled MSEK +3 for the quarter and MSEK +7 for the period.

NET LEASING NYFOSA'S LARGEST TENANTS LEASE MATURITY STRUCTURE July 1, 2023

July 1, 2023

	Rental income, MSEK	Percentage of rental income, %	No. of leases	Average remaining term, years
Delta Auto Oy	53	1	12	12
Swedish Transport
Agency	47	1	8	5
Saab AB	40	1	10	9
Telia Sverige AB	40	1	57	4
City Gross Sverige AB	39	1	4	8
Swedish Police	38	1	26	3
Social Insurance Agency	36	1	10	4
City of Helsinki	36	1	1	1
Swedish Public Employment Service	33	1	31	2
Fresk Försäljning AB	33	1	10	9
Other	3,146	89	6,343	3
Total	3,541	100	6,512	4

TREND IN PROPERTY PORTFOLIO JANUARY–JUNE 2023

Property valuation

During the period, appraisers increased the yield requirements of the property valuations. The negative valuation effect caused by the higher yield requirements was partly offset by the higher expected future net operating income due to new leases, renegotiations and rent indexation.

The weighted yield requirement for externally valued properties on June 30, 2023 was 6.59 percent (5.83), and the weighted cost of capital for the present value calculation of cash flows and residual values was a nominal 8.69 percent (7.74) and 8.90 percent (8.02), respectively.

Changes in values of properties amounted to MSEK –720 (1,214).

Valuation techniques

The value of the properties has been assessed based on a cash-flow estimate in which simulated future income and expenses as well as the market's expectations, with respect to the subject property, are analyzed.

The yield requirement used in the estimate derives from sales of comparable properties. For additional information on valuation techniques, refer to Note 10 of Nyfosa AB's 2022 Annual Report on www.nyfosa.se.

Acquired properties

Closing took place on properties for MSEK 958 during the period.

At the start of January, closing took place on three office properties with an area of 7 thousand sqm in central Västervik.

At the end of March, closing took place on a portfolio of 13 properties including grocery and discount stores, warehouses and light industrial buildings. The acquisition price amounted to MSEK 706 and the annual rental value is MSEK 63. The properties, which have a leasable area of just over 50 thousand sqm, are fully let and the average remaining lease term is 4.4 years. The majority of the properties are situated where Nyfosa had a local presence before, in well-established locations such as Eskilstuna, Örebro, Linköping, Gävle, and Örnsköldsvik. The tenants include Dagab Logistik (Willys), Ahlberg Dollarstore, Rusta and ICA.

Closing also took place on a retail property in Borås and an industrial property in Porvoo in Finland.

Vacated properties

In April, ten properties with warehouses and light industry were vacated in two different transactions. The properties are located in Österåker, Malmö, Helsingborg and Jönköping and have a leasable area of 55 thousand sqm. The selling price amounted to MSEK 546, the annual rental value to MSEK 40 with an occupancy rate of 100 percent and the average remaining lease term amounted to 4.2 years.

CHANGES IN VALUE

	Jan–Jun	Full-year
MSEK	2023	2022	2022
Property value at the beginning of the year	40,446	37,147	37,147
Acquired properties	958	3,763	4,394
Investments in existing properties	420	227	577
Divested properties	-546	-1,240	-1,735
Realized changes in value	76	143	225
Unrealized changes in value	-796	1,070	-664
Translation effect, currency	485	231	503
Property value at end of the year	41,043	41,341	40,446

PROPERTY VALUE WITH SUSTAINABILITY CERTIFICATION

SENSITIVITY ANALYSIS – CHANGE IN VALUE FOR CHANGES IN PARAMETERS IN THE PROPERTY VALUATION

June 30, 2023

	% points	MSEK
Change in net operating income1	+/–5.00	+/–1,511
Change in yield requirement	+/–0.25	–/+ 579
Change in discount rate	+/–0.25	–/+1,186

1) Refers to the appraisers' estimated net operating income in the valuation.

Investments in existing properties

Investments of MSEK 420 were made in the existing property portfolio. The majority of investments were for tenant-specific modifications.

The largest ongoing investments are presented in the table below. The premises in Mården 11 in Luleå are undergoing a complete renovation and modification for the Municipality of Luleå, which signed a ten-year lease with occupancy scheduled for 2023. Areas at the Norr 25:5 property in Gävle is being expanded and modified for Realgymnasiet school, for which a new ten-year lease has been signed. In Holmögadd 3 in Malmö, areas are being modified for Lantmännen, for which a new seven-year lease has been signed. A major conversion and extension is being carried out at Plogen 4 in Luleå to make modifications for the existing tenant Bravida which has signed a new longer lease.

The major expansion and renovation project of a school at Vasarakatu 27 in Jyväskylä was completed. A 15-year lease has been signed with Spesia, which moved into the premises in the second quarter. The premises in Norr 12:5 in Gävle are being renovated and modified for the existing tenant the Social Insurance Agency.

The process of environmentally certifying buildings is continuing, with the primary aim of preparing solid data for deciding on any investment in energy-optimization measures. Properties with sustainability certification had a value of SEK 12.3 billion on the balance-sheet date, corresponding to 30 percent of the total property value.

Specific measures to enhance the cost efficiency of the operation of the premises include analyses to identify investments in energy optimization. Lower energy consumption reduces carbon emissions and also leads to lower operating expenses. A green appendix is offered for when major new leases are signed or leases are renegotiated, the aim of which is to identify and follow up on various initiatives to reduce energy consumption in premises, such as more efficient heating and lighting.

BROAD REGIONAL PRESENCE

Nyfosa has a broad geographic presence throughout Sweden and in major cities in Finland. Regional property management offices—currently nine offices—can be found in key locations in Sweden with large property portfolios. In Finland, the company's partner Brunswick Real Estate leads operational activities together with Nyfosa's own staff.

The company's in-house personnel conduct key roles in the property management operations such as tenant relationships, technical management and leasing. This is supplemented with the purchase of external services, mainly in property operations, maintenance and upkeep. With experienced employees in both the in-house management team and external partners, combined with structured work methods, the company's capable of effectively handling a property portfolio that spans over many locations.

ONGOING INVESTMENTS

Municipality	Property	Type of premises	Tenant	Area, 000s sqm	Total accrued, MSEK	Estimated investment, MSEK	Scheduled completion, year
Luleå	Mården 11	Offices	Luleå municipality	11	94	108	Q4, 2023
Malmö	Holmögadd 3	Office/warehouse	Lantmännen	11	2	30	Q4, 2023
Gävle	Norr 25:5	School	Realgymnasiet	3	22	25	Q3 2023
Luleå	Plogen 4	Offices	Bravida	2	1	22	Q1 2024

JOINT VENTURES

In addition to the wholly owned portfolio, Nyfosa owns 50 percent of the shares in Samfosa AS and Söderport Property Investment AB. The holding is classified as Participations in joint ventures and Nyfosa's share in the company's earnings are recognized in profit after financial income and expenses. These participations contributed SEK 19.03 per share (18.79) to Nyfosa's NAV on the balance-sheet date.

PROPERTY VALUE IN JOINT VENTURES

Samfosa

Samfosa AS is a Norwegian property company that is jointly owned with Samfunnsbyggeren AS.

The property company Bratsberg AS was acquired in January 2022. 14 properties and 10 projects situated in Skien, Porsgrunn, Grimstad and Horten, in the expansive Grenland region southwest of Oslo make up the portfolio. As part of the transaction, Samfosa took over Bratsberg's organization.

The property portfolio is highly diverse with tenants conducting a wide variety of operations and a large number of leases. The largest tenants are Sats Vest and Scandic Hotel. At the end of the period, the value of the property portfolio was about SEK 1,648 billion. The total rental value amounted to MSEK 125 and the leases have an average remaining term of 4.8 years. The occupancy rate was 92 percent.

Söderport

Söderport Property Investment AB is a Swedish property company jointly owned with AB Sagax.

Söderport's property portfolio primarily comprises industrial, warehouse and office properties, which essentially presents a supplement to Nyfosa's wholly owned property portfolio. The focal point of the property portfolio is in the Stockholm region. The largest tenant is Volvo Personvagnar. Söderport does not have its own operational organization. Instead, it procures property management and financial administration from Sagax. A small part of property management is procured from Nyfosa.

KEY FIGURES JOINT VENTURES

	Söderport		Samfosa
January–June, MSEK	2023	2022	2023	2022
Rental income	512	443	68	54
Profit from property management	234	256	7	3
Changes in value	64	1,078	3	170
Profit	210	1,061	8	134
of which, Nyfosa's share	105	497	4	65
June 30, MSEK
Investment properties		14,419 14,269	1,648	1,526
Derivatives, net	162	-95	0	0
Cash and cash equivalents	235	277	32	44
Equity attributable to Parent Company shareholders	5,611	5,524	268	274
of which, Nyfosa's share	2,806	2,762	134	138
Interest-bearing liabilities	7,308	6,994	1,292	1,214
Deferred tax liabilities, net	1,508	1,437	42	35
Rental value	1,082	972	125	101
Economic occupancy rate, %	96	96	92	95
Average remaining lease term, years	3.9	4.4	4.8	4.9
Leasable area, 000s sqm	773	769	101	93

PARTICIPATIONS IN JOINT VENTURES

	Söderport		Samfosa
June 30, MSEK	2023	2022	2023	2022
Carrying amount at the beginning of the period	2,881	2,490	137	0
Dividends received	-180	-225	-	-
Share in profit of joint ventures	105	497	4	65
Acquisitions/impairment for the year	-	0	-	77
Translation effect, currency	-	-	-6	-5
Carrying amount at end of the period	2,806	2,762	135	138

KEY FIGURES

	Rolling
Property-related key figures	12 months	2022	2021	2020	2019
Income, MSEK	3,433	3,151	2,459	2,035	1,370
Property expenses, MSEK	-1,017	-930	-717	-557	-415
Property administration, MSEK	-135	-129	-91	-63	-50
Net operating income, MSEK	2,281	2,092	1,651	1,415	905
Surplus ratio, %	66.4	66.4	67.1	69.5	66.0
Profit from property management, MSEK	1,392	1,533	1,302	1,147	814
Property value on balance-sheet date, MSEK	41,043	40,446	37,147	29,411	19,602

	Rolling
Share-related key figures	12 months	2022	2021	2020	2019
Profit from property management per share, SEK	7.00	7.80	6.90	6.32	4.85
Distributable cash flow per share, SEK	7.29	8.35	7.64	6.91	4.73
Earnings per share before dilution, SEK	-4.02	8.62	16.52	12.25	8.24
Earnings per share after dilution, SEK	-4.02	8.61	16.49	12.25	8.24
Dividends paid, SEK	3.85	3.60	3.24	0.00	0.00
NAV per share on balance-sheet date, SEK	96.91	100.78	95.93	79.91	65.37
Adjusted NAV per share on balance-sheet date, SEK	89.91	93.63	89.76	75.33	60.11
Equity per share on balance-sheet date, SEK	88.61	92.22	86.04	72.27	58.32

Key financial data			Jun 30, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Return on equity, %	-4.4	9.7	20.9	19.3	15.2
Equity/assets ratio, %	38.5	40.6	42.5	41.8	44.1
Loan-to-value ratio, properties, %	60.2	59.4	56.7	58.0	57.6
Net loan-to-value ratio, properties, %	58.2	57.7	55.2	56.9	54.6
Interest-coverage ratio for the period, multiple	2.4	3.4	4.2	4.5	5.2

Presented above are the key figures that provide supplementary information to investors and the company's management in their assessment of the company's performance. Key figures not been defined by IFRS have been supplemented with a reconciliation. Refer also to the reconciliations and definitions of key figures at the end of this interim report.

INCOME PER SHARE

NET OPERATING INCOME PER SHARE

FINANCIAL PERFORMANCE

	Jan–Jun		Apr–Jun		Rolling	Full-year
MSEK	2023	2022	2023	2022	12 months	2022
Rental income	1,617	1,385	814	726	3,082	2,853
Service income	169	120	77	66	297	297
Income	1,786	1,505	891	791	3,433	3,151
Property expenses
Operating expenses	-395	-325	-166	-159	-704	-635
Maintenance costs	-80	-76	-41	-39	-146	-143
Property tax	-82	-68	-41	-36	-166	-153
Property administration	-68	-61	-37	-33	-135	-129
Net operating income	1,161	973	606	523	2,281	2,092

Central administration	-93	-78	-46	-43	-176	-161
Other operating income and expenses	6	5	1	3	15	14
Share in profit of joint ventures	109	562	154	296	218	672
- Of which, profit from property management	120	121	63	62	251	252
- Of which, changes in value	33	588	136	314	-13	542
- Of which, tax	-48	-147	-40	-79	-62	-161
- Of which, other	3	0	-5	0	42	38
Financial income and expenses	-573	-258	-305	-142	-979	-664
Profit after financial income and	610	1,204	409	637	1,359	1,953
expenses1
- Of which, profit from property manage	621	763	318	403	1,392	1,533
ment1

Changes in value of properties	-720	1,214	-199	350	-2,373	-439
Changes in value of financial instruments	17	177	47	67	185	345
Profit/loss before tax	-93	2,595	257	1,055	-829	1,859

Current tax	-24	-35	-10	-12	-85	-96
Deferred tax	25	-255	-5	-61	211	-70
Profit/loss for the period	-91	2,305	242	981	-702	1,694
Profit/loss for the year attributable to:
Parent Company shareholders	-100	2,303	233	981	-714	1,689

Non-controlling interests	9	2	9	0	11	5
Earnings per share before dilution, SEK	-0.68	11.96	1.14	5.09	-4.02	8.62
Earnings per share after dilution, SEK	-0.68	11.93	1.14	5.07	-4.02	8.61

CONDENSED STATEMENT OF PROFIT/LOSS CONDENSED STATEMENT OF PROFIT/LOSS AND OTHER COMPREHENSIVE INCOME

	Jan–Jun Apr–Jun			Rolling	Full-year
MSEK	2023	2022	2023	2022	12 months	2022
Profit/loss for the period	-91	2,305	242	981	-702	1,694
Translation of foreign operations	213	118	172	100	364	269
Comprehensive income for the period	122	2,423	414	1,082	-338	1,962

Comprehensive income attributable to:
Parent Company shareholders	110	2,414	403	1,075	-359	1,955
Non-controlling interests	11	9	11	6	21	7
Comprehensive income for the period	122	2,423	414	1,082	-338	1,962

CONDENSED STATEMENT OF FINANCIAL POSITION CONDENSED STATEMENT OF CHANGES IN EQUITY

	Jun 30	Dec 31
MSEK	2023	2022	2022
ASSETS
Investment properties	41,043	41,341	40,446
Assets with right-of-use	541	503	501
Participations in joint ventures	2,941	2,900	3,018
Derivatives	368	199	372
Other assets	79	53	47
Total non-current assets	44,972	44,996	44,385

Derivatives	52	-	-
Current receivables	263	173	259
Cash and cash equivalents	801	766	691
Total current assets	1,117	939	950
TOTAL ASSETS	46,089	45,935	45,335

EQUITY AND LIABILITIES
Equity attributable to Parent Company shareholders1	17,689	18,906	18,378
Non-controlling interests	50	42	39
Total equity	17,739	18,948	18,416

Non-current interest-bearing liabilities	24,454	23,259	22,957
Liabilities attributable to right-of-use assets	524	486	484
Other non-current liabilities	65	75	62
Deferred tax liabilities	1,311	1,509	1,333
Total non-current liabilities	26,354	25,330	24,837

Current interest-bearing liabilities	243	282	1,076
Other current liabilities	1,754	1,376	1,006
Total current liabilities	1,996	1,657	2,082
Total liabilities	28,350	26,987	26,919
TOTAL EQUITY AND LIABILITIES	46,089	45,935	45,335

	Equity attributable to
MSEK	the Parent Compa ny's shareholders	Non-controlling interests	Total equity
Opening equity, Jan 1, 2022	17,236	32	17,268
Issue/buyback of warrants	4	-	4
Dividends to shareholders	-726	-	-726
Interest to hybrid bond holders	-19	-	-19
Change in non-controlling interests	-	0	0
Comprehensive income, Jan–Jun 2022	2,414	10	2,423
Closing equity, Jun 30, 2022	18,906	42	18,948
Issue/buyback of warrants	-14	-	-14
Dividends to shareholders	-	-	-
Repurchased hybrid bonds	-34	-	-34
Interest and other expenses on hybrid bonds	-25	-	-25
Change in non-controlling interests	-	0	0
Comprehensive income, Jul–Dec 2022	-459	-3	-461
Closing equity, Dec 31, 2022	18,378	39	18,416
Opening equity, Jan 1, 2023	18,378	39	18,416
Issue/buyback of warrants	-4	-	-4
Dividends to shareholders	-764	-	-764
Interest and other expenses on hybrid bonds	-30	-	-30
Change in non-controlling interests	-	-1	-1
Comprehensive income, Jan–Jun 2023	110	11	122
Closing equity, Jun 30, 2023	17,689	50	17,739

1) Of which hybrid bonds of MSEK 763 (800).

CONDENSED STATEMENT OF CASH FLOWS

	Jan–Jun		Apr–Jun		Rolling	Full-year
MSEK	2023	2022	2023	2022	12 months	2022
Operating activities
Profit/loss before tax	-93	2,595	257	1,055	-829	1,859
Adjustments for non-cash items	624	-1,918	15	-694	2,035	-507
Dividend from holdings in joint ventures	180	225	180	225	290	335
Interest paid to hybrid bond holders	-32	-10	-17	-3	-59	-37
Income tax paid	-44	-54	0	0	-44	-54
Distributable cash flow1	635	838	435	582	1,393	1,596
– per share, SEK	3.32	4.39	2.28	3.05	7.29	8.35

Change in operating receivables	7	20	46	65	-62	-49
Change in operating liabilities	348	226	23	38	219	97
Cash flow from operating activities	990	1,084	504	685	1,549	1,644

Investing activities
Direct and indirect acquisitions of investment properties	-945	-3,748	-3	-3,730	-1,510	-4,313
Direct and indirect divestments of investment properties	546	1,236	546	888	1,036	1,726
Investments in existing investment properties	-420	-227	-227	-139	-770	-577
Investments in joint ventures	0	-77	0	-1	-115	-192
Non-current receivables from joint ventures	-40	-19	-14	4	-50	-29
Other	0	-22	0	-22	14	-7
Cash flow from investing activities	-860	-2,856	302	-3,000	-1,396	-3,392

		Jan–Jun	Apr–Jun		Rolling	Full-year
MSEK	2023	2022	2023	2022	12 months	2022
Financing activities
Issue of shares/warrants	2	4	2	4	2	4
Repurchase of shares/warrants	-7	-	0	-	-21	-14
Repurchased hybrid bonds	-	-1	-	-	-33	-34
Dividends to shareholders	-372	-325	-191	-181	-735	-688
Loans raised	1,622	9,567	952	8,165	2,327	10,271
Repayment of loans	-1,288	-7,240	- 1,209	-6,307	-1,691	-7,643
New share issue to non-controlling interests	0	0	0	0	0	1
Other	9	-9	0	1	9	-8
Cash flow from financing activities	-35	1,996	-446	1,681	-142	1,889

Cash flow for the period	95	224	360	-634	11	140
Cash and cash equivalents at the beginning of the period	691	534	430	1,380	766	534
Exchange differences in cash and cash equivalents	16	7	13	20	25	16
Cash and cash equivalents at the end of the period	801	766	801	766	801	691

Interest received	1	0	1	0	6	5
Interest paid	-467	-202	-229	-100	-731	-467

1) Cash flow from operating activities before changes in working capital

	Jan–Jun		Apr–Jun		Full-year
MSEK	2023	2022	2023	2022	2022
Net sales	70	61	38	33	125
Personnel costs	-54	-50	-29	-26	-93
Other external costs	-30	-30	-15	-14	-58
Depreciation/amortization	0	0	0	0	0
Loss before financial income and expenses	-13	-19	-6	-7	-26

Profit from participations in Group companies	0	0	0	0	1,215
Interest income and similar income items	144	63	76	32	166
Interest expenses and similar expense items	-67	-41	-39	-23	-107
Profit before appropriations	63	3	31	1	1,248

Appropriations
Provision to tax allocation reserve	0	0	0	0	0
Group contributions paid/received	0	0	0	0	25
Profit before tax	63	3	0	1	1,273

Tax	0	0	0	0	1
Profit	63	3	31	1	1,273

Profit/loss for the period is the same as comprehensive income for the period.

Nyfosa AB is a holding company whose operations comprise owning and managing shares. The company owns 100 percent of the participations in Nyfosa Holding AB, which indirectly owns properties for SEK 41.0 billion. Furthermore, the company owns, via subsidiaries, 50 percent of the participations in Söderport and Samfosa, which indirectly own properties for SEK 16.1 billion.

PARENT COMPANY STATEMENT OF PROFIT/LOSS PARENT COMPANY STATEMENT OF FINANCIAL POSITION

	Jun 30	Dec 31
MSEK	2023	2022	2022
ASSETS
Participations in Group companies	0	0	0
Receivables from Group companies	4,965	5,277	5,277
Derivatives	8	0	0
Deferred tax assets	0	0	0
Total non-current assets	4,973	5,278	5,277

Current receivables from Group companies	15,904	14,468	16,014
Other current receivables	15	7	22
Cash and bank balances	295	235	258
Total current assets	16,213	14,710	16,294
TOTAL ASSETS	21,186	19,987	21,571

EQUITY AND LIABILITIES
Restricted equity	96	96	96
Unrestricted equity1	11,093	10,630	11,828
Equity	11,189	10,726	11,924

Untaxed reserves	0	0	0

Bonds	1,616	1,588	1,591
Other non-current liabilities	3	7	7
Total non-current liabilities	1,620	1,595	1,598

Liabilities to Group companies	7,686	7,076	7,794
Other current liabilities	692	590	255
Total current liabilities	8,378	7,666	8,049
Total liabilities	9,997	9,261	9,647
TOTAL EQUITY AND LIABILITIES	21,186	19,987	21,571

1) Of which hybrid bonds of MSEK 763 (800).

NOTES

NOTE 1

BASIS OF PREPARATION AND ACCOUNTING POLICIES

This condensed interim report for the Group has been prepared in accordance with IAS 34 Interim Reporting, as well as the applicable regulations of the Swedish Annual Accounts Act. The interim report for the Parent Company has been prepared in accordance with Chapter 9 Interim Reports of the Annual Accounts Act. The accounting policies and calculation methods were unchanged compared with 2022 Annual Report. Disclosures in accordance with IAS 34.16A are provided not only in the financial statements and the accompanying notes but also elsewhere in this interim report.

All amounts in the report are stated in millions of SEK ("MSEK") unless otherwise stated. There may be rounding errors in tables that have combined sums from already rounded amounts. Amounts in parentheses refer to the same period in the preceding financial year. Key figures regarding an earnings or cash flow measure, stated per share, are calculated on a weighted average number of shares during the period referred to. Key figures based on an amount in the statement of financial position, stated per share, are calculated on the number of shares on the balance-sheet date. "Rolling 12 months" mean the most recent 12-month period from the balance-sheet date.

Renaming of "profit from property management"

From October 1, 2022, the former earnings measure Profit from property management was renamed Profit after financial income and expenses. The former earnings measure Profit from property management excluding changes in value and tax in joint ventures was renamed Profit from property management. This change provides better comparability with other listed Swedish property companies with significant holdings of participations in joint ventures.

NOTE 2

ESTIMATES AND ASSESSMENTS

The preparation of the interim report requires that company management make judgments and estimates, and make assumptions that affect the application of the accounting policies and the amounts of assets, liabilities, income and expenses recognized. The actual outcome may deviate from these judgments and estimates.

Measurement of investment properties

For significant assumptions and assessments affecting the measurement of Nyfosa's investment properties, refer to Note 10 of the 2022 Annual Report on www.nyfosa.se. Nyfosa's property portfolio is recognized in the statement of financial position at fair value, Level 3 according to IFRS 13, and the changes in value are recognized in profit or loss. All properties are valued by authorized appraisers at every quarterly closing, except for the properties that were closed on or divested in the past quarter. These properties are recognized at acquisition cost and selling price, respectively. The value of the properties is affected not only by supply and demand in the market but also by a number of other factors, in part property-specific factors such as the occupancy rate, rent level and operating expenses, and in part such market-specific factors as the yield requirement and the cost of capital, which are derived from comparable transactions in the property market. Deterioration in either a property or the market could cause the value of the properties to decline, which could have a negative impact on Nyfosa's operations, financial position and earnings.

Valuations require assessments of and assumptions about future cash flows and determination of the discount factor (yield requirement). An uncertainty interval of +/- 5–10 percent is usually applied to property valuations to reflect the uncertainty of assumptions and assessments made.

Measurement of loss carryforwards

The regulatory framework governing taxation of the type of business operated by Nyfosa is complex and comprehensive in terms of both income tax and VAT/property taxation. Moreover, interpretation and application of these regulations by courts of law can change over time. Changes in these regulations, or in their interpretation by judicial bodies, could impact Nyfosa's earnings and position either positively or negatively. From time to time, Nyfosa has cases under review by, and ongoing dialog with, the Swedish Tax Agency regarding individual taxation matters. The Tax Agency makes tax rulings that can be appealed and reviewed in administrative courts of appeal. The regulations governing the recognition of taxes, and the property sector's application of these accounting regulations, are also complex. The regulatory framework is complex, the Tax Agency's review possibilities are comprehensive and the judicial bodies' interpretation and reviews take place in many stages, which means that it can take a long time to establish the correct application of legislation in complex taxation matters. This may entail that actions taken or completed transactions that were previously considered permissible according to the regulatory framework may need to be reappraised at a later juncture. Nyfosa monitors the taxation laws and practices that are in effect whenever it files tax returns. Nyfosa's assessments and calculations in the tax area, and the accounting of these matters, are reassessed at the end of each reporting period.

The company does not have any ongoing tax disputes.

Classification of acquisitions

Nyfosa's corporate acquisitions in 2023 encompass only properties and no material operational processes, which is why the transactions are deemed to be asset purchases.

NOTE 3

RISKS AND UNCERTAINTIES

Changed market conditions

Nyfosa's financial target is to create annual growth in distributable cash flow per share of 10 percent over time. Growth is created in part through the transaction operations and property acquisitions, and in part by the property management operations through leasing and investments in the existing property portfolio. Changed conditions in the market, such as significantly more costly financing, tenant bankruptcies or more expensive modifications impact the company's ability to achieve its financial growth target.

Risk management

The flexible and opportunistic business model means that the operations can rapidly adapt to new conditions. Close relationships with banks that inspire confidence in the company, thus allowing for rapid changes to new conditions. A diverse lease structure with no exposure to a small number of types of operations or tenants. Investments in the existing property portfolio primarily refer to tenant-specific modifications as stipulated in signed leases.

Changes in value of properties

The value of the property portfolio is the largest asset item in the statement of financial position. Small changes in components that affect the value of an individual property can have a major impact on the company's financial position.

The value is affected not only by supply and demand in the market, but by several other factors that are both property specific and market specific. Because the value is based on several components with an element of assumption regarding future rent levels and leasing potential, there is a degree of subjectivity in the value ascribed to the object.

Risk management

The chosen strategy entails owning a large number of properties that are geographically diverse, thereby resulting in a balanced risk profile.

The prioritized property category is commercial properties in high-growth municipalities where there is an increase in migration and well-functioning business.

To minimize the risk of errors in the value of the property portfolio, the company engages external appraisers to value all properties ahead of each quarterly closing. The valuation assignment is shared by at least two appraisers.

Interest-rate risk

Interest-rate risk means the risk that changes in interest rates result in such high interest expenses that the company breaches its financial risk limitation of the interest-coverage ratio being at least a multiple of 2.0.

Risk management

Nyfosa mainly has floating interest rates in its loan agreements. Exposure to increases in interest rates is managed by making use of derivative instruments, currently both interest-rate caps and swaps. Interest-rate caps and swaps are entered into to adapt the company's fixed-rate periods to the decided finance policy and existing loan agreements.

The remaining term of signed derivative agreements was 1.7 years (2.7) on the balance-sheet date. Interest-rate caps offer the holder security in the form of a maximum impact on interest expenses if STI-BOR 3M and EURIBOR 6M rise. However, rising interest rates that do not reach the interest-rate cap will have full impact on earnings. The interest-rate cap is 1.5–2.0 percent (1.5–2.0), and an average of 1.56 percent (1.56). Interest-rate swaps already exist in the Finnish loan portfolio for a nominal MSEK 1,188 (-) and were also entered into in the Swedish loan portfolio for a nominal MSEK 500 during the period. Under these derivatives, Nyfosa pays a fixed annual rate of 1.85 percent (1.57).

NOTE 4

OPERATING SEGMENTS

Nyfosa's operations comprise one operating segment, that is to say, Nyfosa's operations comprise a business that generates income and expenses and whose operating profit is regularly assessed by the company's chief operating decision maker as a basis for monitoring earnings and allocating resources.

NOTE 5

TAX

Nyfosa's effective tax rate for the interim period was 1.8 percent (6.9). The deviation from the nominal tax rate of 20.6 percent was mainly due to non-deductible interest, the fact that profit from participations in joint ventures comprised profit after tax, and thus did not constitute taxable income for Nyfosa, and also that the utilization of loss carryforwards changes over time.

Deferred tax is to include temporary differences on all assets and liabilities, except for temporary differences on properties on the closing date since the acquisition is an asset acquisition. There is a total temporary difference of MSEK 14,874 (14,915) in the Group that is not included.

		Jan–Jun
Reconciliation of effective tax, MSEK	%	2023
Loss before tax		-93
Tax according to applicable tax rate for Parent Company	-20.6	19
Non-deductible costs and tax-exempt income	55.8	-52
Profit/loss from participations in joint ventures	-24.1	22
Capitalization and utilization of loss carryforwards not capitalized in prior years	–	–
Non-taxable sales of properties	-38.6	36
Other	25.9	-24
Recognized effective tax	-1.8	2

NOTE 6

EARNINGS PER SHARE

Nyfosa currently has three long-term incentive programs based on warrants for Nyfosa employees. A description of the warrants programs is provided in Note 6 on pages 82-84 of the 2022 Annual Report and in the report from the 2023 Annual General Meeting, see https://https://nyfosa.se/en/report-from-nyfosa-abs-annual-general-meeting-on-april-25-2023/ The number of warrants outstanding at the end of the period is presented in the table below.

During the period, the Board offered to repurchase all outstanding warrants in the 2019/2023 warrants program for market-based cash consideration of SEK 27.10 per option. All holders decided to accept the offer that encompassed 240,000 warrants and proceeds of MSEK 7. Repurchases in other warrants programs was demanded when the employment of one person was terminated, in accordance with the terms of the warrants. Furthermore, the Annual General Meeting's resolution to introduce a new long-term incentive program LTIP2023/2026 was carried out, meaning that 383,342 warrants were subscribed for.

The dilution from the existing warrants program amounted to 0 percent for the period.

Reconciliation of warrants, Jun 30,

2023	LTIP2021 (I) LTIP2021 (II)		LTIP2022	LTIP2023	Total
Warrants outstanding at beginning
of year	325,241	325,241	422,150	0	1,072,632
Warrants subscribed	0	0	0	383,342	383,342
Warrants repurchased	-7,000	-7,000	-29,000	0	-43,000
Warrants utilized	0	0	0	0	-
Warrants outstanding at end of the
period	318,241	318,241	393,150	383,342	1,412,974

NOTE 7

EXPOSURE TO EXCHANGE RATE FLUCTUATIONS

Nyfosa has invested in properties in the Finnish and Norwegian markets. Balance-sheet items in other currencies are translated to SEK and gave rise to a translation difference of MSEK 213 (118) on the balance-sheet date, which is recognized in Other comprehensive income.

Exposure to exchange rate fluctuations is managed by financing acquisitions of assets in foreign currency raising borrowings in the same currency. Net assets in foreign currency amounted to MEUR 326 and the share of equity in joint ventures including receivables from joint ventures to MNOK 197 on June 30, 2023. If the SEK rate were to strengthen against the two currencies by 10 percent compared with the rate on the balance-sheet date, it would have an effect of MSEK –404 on comprehensive income.

Sensitivity analysis currency exposure

June 30, 2023

Earnings effect of exchange rate fluctuations, MSEK	Change, %	Jun 30, 2023
EUR/SEK	+/–10%	+/–384
NOK/SEK	+/–10%	+/–20

NOTE 8 FAIR VALUE OF FINANCIAL INSTRUMENTS

Nyfosa measures its financial instruments at fair value or amortized cost in the statement of financial position, depending on the classification of the instrument. Financial instruments encompass rent receivables, which are recognized under current receivables in the statement of financial position, derivatives, cash and cash equivalents among assets, interest-bearing liabilities and accounts payable, which are recognized under other current liabilities in the statement of financial position. All derivatives are classified in Level 2 according to IFRS 13 and are measured at their fair value in the statement of financial position. Nyfosa has binding framework agreements for derivative trading (ISDAs), which enable Nyfosa to offset financial liabilities against financial assets in the event of the insolvency of a counterparty of other event, a process known as netting. No netting currently takes place.

The table below presents the fair value of the Group's derivatives, which is reflected in the statement of financial position. The carrying amount of accounts receivable, other receivables, cash and cash equivalents, accounts payable and other liabilities provides a reasonable approximation of the fair value.

	Jun 30	Dec 31
Fair value, MSEK	2023	2022	2022
Derivatives with positive values	420	199	372
Derivatives with negative values	-	-	-

NOTE 9

FINANCING

For information regarding changes in loans, interest rates and credit terms, refer to the Financing section of this interim report.

NOTE 10

EQUITY

On June 30, 2023, Nyfosa's share capital amounted to MSEK 96, distributed among 191,022,813 shares with a quotient value of SEK 0.5 per share. According to the Articles of Association, the share capital shall amount to not less than MSEK 80 and not more than MSEK 320, distributed among not fewer than 160,000,000 shares and not more than 640,000,000 shares. The share capital in Nyfosa AB changed according to the table.

Date	Change in share capital (SEK)	Change number of shares	Share capital after change (SEK)	Number of shares after change
Oct 17, 2017	-	-	50,000.00	500
May 21, 2018	-	99,500	50,000.00	100,000
May 21, 2018	78,814,124.50	157,628,249	78,864,124.50	157,728,249
Aug 21, 2018	5,000,000.00	10,000,000	83,864,124.50	167,728,249
Feb 17, 2020	3,231,412.00	6,462,824	87,095,536.50	174,191,073
March 9, 2020	5,155,000.00	10,310,000	92,250,536.50	184,501,073
June 9, 2021	3,260,870.00	6,521,740	95,511,406.50	191,022,813

Hybrid bonds

Nyfosa has outstanding hybrid bonds of MSEK 763. The hybrid bonds are perpetual and Nyfosa governs the payment of interest and the principal of the instruments, which is why they are classified as equity instruments under IAS 32. Issue costs and tax attributable to issue costs and interest to the hybrid bond holders are recognized directly in equity. The bonds have a floating interest rate of STIBOR 3M+475 basis points per annum up to and including November 18, 2025.

NOTE 11

RELATED PARTIES

The Group owns participations in joint ventures, refer to relevant section of this interim report. Söderport is managed by AB Sagax, except for property management which is managed by Nyfosa. Samfosa is managed by its own organization and some personnel from the part-owner Samfunnsbyggeren AS.

Property management fees between the companies are based on market terms. Nyfosa's fee amounts to MSEK 3 per year. The Group had receivables of MSEK 55 (19) from joint ventures on June 30, 2023. The terms of the loan are market-based and stipulated in a promissory note between the parties. Nyfosa also has a surety for liability of MNOK 310 pertaining to an external bank loan with Samfosa.

NOTE 12 SIGNIFICANT EVENTS AFTER THE END OF THE PERIODEN

There were no significant events after the end of the period.

THE SHARE

The share

Nyfosa's share has been listed on Nasdaq Stockholm Large Cap since November 2018.

The volume weighted average price of the Nyfosa share on the last day of trading of the period, June 30, 2023, was SEK 59.66, which corresponded to a market capitalization of MSEK 11,396.

Shareholders

At the end of the period, Nyfosa had 17,880 shareholders, of which Swedish investors, institutions and private individuals owned 72.0 percent of the shares and voting rights, and the remaining shares and votes were owned by foreign shareholders. The ten largest owners jointly controlled 61.9 percent of the share capital and voting rights. The table presents Nyfosa's largest shareholders on June 30, 2023, based on information from Modular Finance Monitor.

SPECIFICATION OF SHAREHOLDERS

		Percentage share
Shareholders	Number of shares	Capital, %	Votes, %
AB Sagax	44,500,000	23.3	23.3
Länsförsäkringar Funds	15,803,787	8.3	8.3
Swedbank Robur Funds	14,488,922	7.6	7.6
Lannebo Fonder	9,707,515	5.1	5.1
SEB Funds	7,534,786	3.9	3.9
Vanguard	7,200,835	3.8	3.8
BlackRock	6,601,966	3.5	3.5
Handelsbanken Funds	4,681,440	2.5	2.5
Kåpan Pensioner	4,260,359	2.2	2.2
Norges Bank	3,389,738	1.8	1.8
Total ten largest owners	118,169,348	61.9	61.9
Other shareholders	72,853,465	38.2	38.2
Total	191,022,813	100.0	100.0

Source: Modular Finance Monitor

SHARE PERFORMANCE NAV PER SHARE

OTHERS DISCLOSURES

Organization

Nyfosa's organization comprises 82 people, who work with property management, transaction operations, Group-wide administrative services and services specific to the listed Parent Company. Relevant services are provided to the subsidiaries in the Nyfosa Group through internal service level agreements. The property portfolio is primarily managed by the company's own personnel, but also by well-established partners, from nine property management offices in Sweden and three property management offices in Finland.

2023 Annual General Meeting

Nyfosa's 2023 Annual General Meeting (AGM) was held in Stockholm on April 25, 2023. For more information about the AGM, visit www.nyfosa.se.

ASSURANCE FROM THE BOARD AND CEO

The Board of Directors and the CEO give their assurance that this interim report provides a fair review of the company's and the Group's operations, financial position and earnings, and describes the material risks and uncertainties facing the Parent Company and the companies included in the Group.

Nacka, July 11, 2023 Nyfosa AB (Corp. Reg. No. 559131–0833)

Johan Ericsson Stina Lindh Hök Jens Engwall Lisa Dominguez Flodin Chairman of the Board CEO Board member Board member

Board member Board member Board member Board member

David Mindus Marie Bucht Toresäter Per Lindblad Claes Magnus Åkesson

FINANCIAL CALENDAR

Interim report January–September 2023	October 26, 2023
Year-end report January–December 2023	February 21, 2024
Interim report January–March 2024	April 23, 2024
2024 Annual General Meeting	April 23, 2024

CONTACT INFORMATION

Nyfosa AB

Tel: +46 (0)8 406 64 00 Street address: Hästholmsvägen 28 Postal address: Box 4044, SE-131 04 Nacka, Sweden www.nyfosa.se

Stina Lindh Hök, CEO Tel: +46 (0)70 577 18 85 E-mail: [email protected]

Ann-Sofie Lindroth, CFO Tel: +46 (0)70 574 59 25 E-mail: [email protected]

This interim report is unaudited.

The information is inside information that Nyfosa AB is obligated to disclose in accordance with the EU Market Abuse Regulation and Swedish Securities Market Act. The information was submitted for publication through the agency of the aforementioned contact persons on July 11, 2023 at 7:30 a.m. CEST.

RECONCILIATION OF KEY FIGURES

PROFIT FROM PROPERTY MANAGEMENT

	Rolling
	12 months	2022	2021	2020	2019
Profit/loss before tax, MSEK	-829	1,859	3,644	2,399	1,576
Changes in value of properties, MSEK	2,373	439	-1,652	-1,063	-472
Changes in value of financial instruments, MSEK	-185	-345	-19	-1	7
Changes in value of tax and other items in Share in profit of joint ventures, MSEK	33	-420	-670	-187	-298
Profit from property management, MSEK	1,392	1,533	1,302	1,147	814
Interest on hybrid bonds, MSEK	-54	-43	-4	0	0
Adjusted profit from property management, MSEK	1,338	1,490	1,298	1,147	814
Average number of shares, millions	191	191	188	182	168
Profit from property management per share, SEK	7.00	7.80	6.90	6.32	4.85

INTEREST-COVERAGE RATIO

	Rolling
	12 months	2022	2021	2020	2019
Profit/loss before tax, MSEK	-829	1,859	3,644	2,399	1,576
Changes in value of properties, MSEK	2,373	439	-1,652	-1,063	-472
Changes in value of financial instruments, MSEK	-185	-345	-19	-1	7
Share in profit of joint ventures, MSEK	-218	-672	-888	-404	-491
Dividends received from participations in joint ventures,
MSEK	290	335	332	300	200
Depreciation of equipment, MSEK	2	2	1	1	0
Financial expenses, MSEK	991	678	446	357	195
Adjusted profit before tax, MSEK	2,424	2,296	1,864	1,587	1,016
Interest-coverage ratio, multiple	2.4	3.4	4.2	4.5	5.2

DISTRIBUTABLE CASH FLOW

	Rolling
	12 months	2022	2021	2020	2019
Profit/loss before tax, MSEK	-829	1,859	3,644	2,399	1,576
Changes in value of properties, MSEK	2,373	439	-1,652	-1,063	-472
Changes in value of financial instruments, MSEK	-185	-345	-19	-1	7
Share in profit of joint ventures, MSEK	-218	-672	-888	-404	-491
Dividends received from participations in joint ventures,
MSEK	290	335	332	300	200
Depreciation of equipment, MSEK	2	2	1	1	0
Allocated arrangement fees for loans, MSEK	63	69	48	35	0
Income tax paid, MSEK	-44	-54	-29	-11	-27
Interest on hybrid bonds, MSEK	-59	-37	0	0	0
Distributable cash flow, MSEK	1,393	1,596	1,436	1,254	793
Average number of shares, millions	191	191	188	182	168
Distributable cash flow per share, SEK	7.29	8.35	7.64	6.91	4.73

LOAN-TO-VALUE RATIO AND NET LOAN-TO-VALUE RATIO

	Jun 30
	2023	2022	2021	2020	2019
Interest-bearing liabilities, MSEK	24,697	24,033	21,045	17,055	11,282
Property value, MSEK	41,043	40,446	37,147	29,411	19,602
Loan-to-value ratio, %	60.2	59.4	56.7	58.0	57.6
Cash and cash equivalents, MSEK	801	691	534	312	588
Net loan-to-value ratio, %	58.2	57.7	55.2	56.9	54.6

EQUITY/ASSETS RATIO

	Jun 30
	2023	2022	2021	2020	2019
Equity, MSEK	17,739	18,416	17,268	13,333	9,781
Total assets, MSEK	46,089	45,335	40,626	31,907	22,201
Equity/assets ratio, %	38.5	40.6	42.5	41.8	44.1

NET ASSET VALUE

	Jun 30, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Equity attributable to Parent Company shareholders, MSEK	17,689	18,378	17,236	13,333	9,781
Hybrid bonds, MSEK	-763	-763	-800	0	0
Deferred tax, MSEK	1,311	1,333	1,252	760	627
Derivatives, MSEK	-420	-372	-22	-3	-2
Deferred tax in joint ventures, 50%, MSEK	776	751	596	544	454
Derivatives in joint ventures, 50%, MSEK	-81	-76	62	110	104
NAV, MSEK	18,511	19,250	18,325	14,744	10,965
Number of shares, millions	191	191	191	185	168
NAV per share, SEK	96.91	100.78	95.93	79.91	65.37

Equity attributable to Parent Company shareholders, MSEK	17,689	18,378	17,237	13,333	9,781
Hybrid bonds, MSEK	-763	-763	-800	0	0
Estimated actual deferred tax, MSEK1	603	576	541	341	98
Derivatives, MSEK	-420	-372	-22	-3	-2
Estimated actual deferred tax in JV, Nyfosa's share,
MSEK1	147	142	126	119	100
Derivatives in JV, Nyfosa's share, MSEK	-81	-76	62	110	104
Adjusted NAV, MSEK	17,175	17,885	17,145	13,899	10,081
Number of shares, millions	191	191	191	185	168
Adjusted NAV per share, SEK	89.91	93.63	89.75	75.33	60.11

1) Assumptions include that loss carryforwards are expected to be used in the next five years with nominal tax of 20.6 percent. The property portfolio is expected to be realized over 50 years when the entire portfolio will be indirectly sold via companies and the purchaser's deduction for deferred tax is 7 percent. The discount rate was 3 percent.

EQUITY

	Jun 30, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Equity attributable to the Parent Company's shareholders,
MSEK	17,689	18,378	17,236	13,333	9,781
Hybrid bonds, MSEK	-763	-763	-800	0	0
Adjusted equity, MSEK	16,926	17,615	16,436	13,333	9,781
Number of shares, millions	191	191	191	185	168
Equity per share, SEK	88.61	92.22	86.04	72.27	58.32

RETURN ON EQUITY

	Rolling 12 months	2022	2021	2020	2019
Profit/loss attributable to Parent Company sharehold ers, MSEK	-714	1,689	3,112	2,225	1,382
Interest to hybrid bond holders, MSEK	-54	-43	-4	0	0
Adjusted profit/loss for the year, MSEK	-768	1,646	3,107	2,225	1,382
Average equity attributable to Parent Company shareholders, MSEK	18,320	17,807	15,285	11,557	9,087
Average hybrid bonds, MSEK	-778	-781	-400	0	0
Adjusted equity, MSEK	17,543	17,026	14,885	11,557	9,087
Return on equity, %	-4.4	9.7	20.9	19.3	15.2

DEFINITIONS

Return on equity

Profit for the most recent 12-month period less interest on hybrid bonds in relation to average equity, attributable to the Parent Company's shareholders and adjusted for average hybrid bonds, during the same period.

Purpose: The performance measure shows the return generated on the capital attributable to shareholders.

Loan-to-value ratio, properties1)

Interest-bearing liabilities at the end of the period in relation to the value of the properties (in the statement of financial position).

Purpose: The loan-to-value ratio is a measure of risk that indicates the degree to which the operation is encumbered with interest-bearing liabilities. The performance measure provides comparability with other property companies.

Yield1)

Net operating income according to earnings capacity in relation to the fair value of the properties on the balance-sheet date.

Purpose: The performance measure indicates the yield from operational activities in relation to the properties' value.

Net operating income1)

Net operating income comprises the income and expense directly connected to the property, meaning rental income and the expenses required to keep the property in operation, such as operating expenses, maintenance costs and personnel costs for those who take care of the property and tenant contacts.

Purpose: The measure is used to provide comparability with other property companies, but also to illustrate operational performance.

Equity per share1)

Equity, attributable to the Parent Company's shareholders less hybrid bonds, according to the statement of financial position, in relation to the number of shares outstanding on the balance-sheet date.

Purpose: The performance measure shows how large a share of the company's recognized equity each share represents.

Economic occupancy rate

Income before rent discounts as a percentage of the rental value at the end of the period.

Purpose: The performance measure facilitates the assessment of rental income in relation to the value of the leased and unleased floor space.

Property

Properties held under title or site leasehold.

Property value

The carrying amount of investment properties according to the statement of financial position at the end of the period.

Purpose: The performance measure facilitates better understanding of the value development in the property portfolio and the company's statement of financial position.

Profit from property management1)

Profit from property management comprises profit before tax with reversal of changes in the value of properties and financial instruments in the Group and reversal of changes in value of tax and other items in share in profit of joint ventures.

Profit from property management1) per share

Profit from property management less interest on hybrid bonds in relation to average number of shares outstanding.

Rental income

Rent charged including indexation and additional charges for investments and property tax.

Rental value

Rental income before rent discounts for leased areas and assessed market rent for the vacant floor space.

Purpose: The performance measure facilitates assessment of the total potential rental income since the assessed market rent for vacant floor space is added to the rental income charged.

Adjusted NAV1)

Equity, attributable to the Parent Company's shareholders, less hybrid bonds and with reversal of derivatives and adjusted for actual deferred tax liabilities instead of nominal deferred tax in both the Group and Nyfosa's participations in joint ventures.

Purpose: To show the fair value of net assets from a long-term perspective but under the assumption that assets are traded. Accordingly, assets and liabilities in the statement of financial position that are not adjudged to be realized, such as the fair value of derivatives, are excluded but the market value of deferred tax is included. The corresponding items in the company's participations in joint ventures are also excluded from the performance measure.

Net loan-to-value ratio, properties1)

The net of interest-bearing liabilities and cash and cash equivalents at the end of the period as a percentage of the fair value of the properties in the statement of financial position.

Purpose: The net loan-to-value ratio is a measure of financial risk that indicates the degree to which the operation is encumbered with interest-bearing liabilities, but taking into account bank balances. The performance measure provides comparability with other property companies.

Net leasing

Signed new leases for the period less terminations and bankruptcies.

Earnings per share

Profit after tax attributable to the Parent Company's shareholders less interest on hybrid bonds in relation to average number of shares outstanding.

Revolving credit facility

An agreement between a lender and a borrower that gives the borrower the right to use funds for a certain period of time and up to a certain amount, and repay at its own discretion before a certain date.

Interest-rate cap

An interest hedging instrument whereby the lender pays a variable interest up to a predetermined interest-rate level. The aim of interest-rate caps is to reduce interest-rate risk.

1) Refers to alternative performance measures according to the European Securities and Markets Authority (ESMA).

Interest-coverage ratio1)

Profit before tax with reversal of depreciation/amortization, financial expenses, changes in the value of properties and financial instruments in the Group and share in profit of joint ventures, including dividends received from holdings in joint ventures, in relation financial expenses.

Purpose: The interest-coverage ratio is a measure of financial risk that shows how many times the company can pay its interest charges with its profit from operational activities.

Service income

Fee charged for such services as electricity, heating, cooling, waste collection, snow clearing, water, etc.

Debt/equity ratio, multiple1)

Interest-bearing liabilities as a percentage of equity.

Purpose: The debt/equity ratio is a measure of financial risk that shows the company's capital structure and sensitivity to movements in interest rates.

Equity/assets ratio1)

Equity as a percentage of total assets.

Purpose: To show how large a share of the company's assets is financed by equity and has been included to enable investors to be able to assess the company's capital structure.

NAV1)

Equity, attributable to the Parent Company's shareholders, less hybrid bonds and with reversal of derivatives and deferred tax liabilities in both the Group and Nyfosa's participations in joint ventures.

Purpose: To show the fair value of net assets from a long-term perspective. Accordingly, assets and liabilities in the statement of financial position that are not adjudged to be realized, such as the fair value of derivatives and deferred taxes, are excluded. The corresponding items in the company's participations in joint ventures are also excluded from the performance measure.

Distributable cash flow1)

Profit before tax excluding non-cash items in the earnings measure, such as changes in the value of properties and financial instruments, share in profit of joint ventures, depreciation of equipment, allocated opening charges for loans, including dividends received from holdings in joint ventures and tax paid, less interest on hybrid bonds.

Purpose: The performance measure shows the amount of cash flow generated by the existing property portfolio under the company's management.

Leasable area

The total premises area that can potentially be leased. Purpose: Shows the area that the company can potentially lease.

Vacancy rent

Assessed market rent for vacant floor space.

Purpose: The performance measure states the potential rental income when all floor space is fully leased.

Surplus ratio1)

Net operating income for the period as a percentage of total income.

Purpose: The surplus ratio shows the percentage of each Swedish krona earned that the company can keep. The performance measure is an indication of efficiency that is comparable over time and among property companies.

NYFOSA

Street address: Hästholmsvägen 28 Postal address: Box 4044, SE-131 04 Nacka, Sweden Tel: +46 (0)8 406 64 00

AI Terminal

Nyfosa

2952_ir_2023-07-11_3bfa9c86-f3d4-48fe-bddb-952def62dd16.pdf

THE PERIOD January–June 2023

THE QUARTER April–June 2023

KEY FIGURES

SIGNIFICANT EVENTS DURING AND AFTER THE QUARTER

DIVESTMENT OF PROPERTIES IN SWEDEN FOR MSEK 546

COMMENTS FROM THE CEO

Property management

Refinancing

Property valuations

Market

TARGETS AND DIVIDEND POLICY

F I N A N C I A L T A R G E T S

DIVIDEND PER SHARE

Dividend policy

Dividends 2022

SUSTAINABILITY TARGETS

Sustainability certification

Outcome 2022

Streamlined consumption

Outcome 2022

TARGETS 2025 LONG-TERM TARGETS

Carbon emissions

Performance 2022

PROFIT

JANUARY–JUNE 2023

Income

Property expenses

Net operating income

Central administration and share in profit of joint ventures

Financial income and expenses

CONDENSED STATEMENT OF PROFIT/LOSS

Profit from property management

Changes in value

Tax

Profit for the period

Distributable cash flow

INCOME PER QUARTER NET OPERATING INCOME PER QUARTER PROFIT FROM PROPERTY MANAGEMENT PER QUARTER

QUARTER APRIL–JUNE 2023

OPTIMIZING OPERATIONS SAVES ENERGY IN MALMÖ

CASH FLOW

Cash flow for the period

Distributable cash flow

Growth in cash flow per share

DISTRIBUTABLE CASH FLOW

EARNINGS CAPACITY

CURRENT EARNINGS CAPACITY

Information used as the basis for assessing current earnings capacity

KEY FIGURES EARNINGS CAPACITY

FINANCING

SOURCES OF FINANCING

Changes in interest-bearing liabilities

KEY FIGURES FOR INTEREST-BEARING LIABILITIES

REVOLVING CREDIT FACILITIES

CHANGES IN INTEREST-BEARING LIABILITIES

Fixed-rate periods and exposure to interest-rate changes

SENSITIVITY ANALYSIS, INTEREST-RATE EXPOSURE

LOAN MATURITY AND FIXED-RATE PERIOD1

PROPERTY PORTFOLIO

Property categories

Offices

Logistics/Warehouse

Retail

Industry

Other

PROPERTY PORTFOLIO

RENTAL VALUE BY TYPE OF PREMISES

Tenant structure

Net leasing

NET LEASING NYFOSA'S LARGEST TENANTS LEASE MATURITY STRUCTURE July 1, 2023

TREND IN PROPERTY PORTFOLIO JANUARY–JUNE 2023

Property valuation

Valuation techniques

Acquired properties

Vacated properties

CHANGES IN VALUE

PROPERTY VALUE WITH SUSTAINABILITY CERTIFICATION

SENSITIVITY ANALYSIS – CHANGE IN VALUE FOR CHANGES IN PARAMETERS IN THE PROPERTY VALUATION