Annehem Fastigheter

Earnings Release • Apr 27, 2023

Increased income from property management and strong net letting

January–March

• Rent revenue for the period amounted to SEK 66.3 million (61.1)
• Net operating income amounted to SEK 58.0 million (50.6)
• Income from property management amounted to SEK 21.3 million (17.7)
• Income from property management excl. currency effects amounted to SEK 26.2 million (20.4)
• Earnings per share amounted to SEK -0.12 (-1.36) ¹
• Investments in existing properties amounted to SEK 35.7 million (14.3)
• Valuations of investment properties yielded a decrease in fair value of SEK -35.2 million (-122.0)
• The fair value of investment properties amounted to SEK 4,688.7 million (4,366.3)
• Long-term net asset value (EPRA NRV) per share amounted to SEK 30.7 (42.4) ²

1) The average number of shares and key figures based on this have been restated by an adjustment factor of 1.1659 for all comparative years, corresponding to the bonus issue element in this year's rights issue; for more information, refer to Note 7.

2) EPRA NRV per share is calculated on the actual number of outstanding shares.

Significant events during the first quarter

• Annehem publishes final outcome of the rights issue initiated in the fourth quarter
• Annehem accesses the residential property in Partille Port, Gothenburg
• Annehem Fastigheter enters its third year as a green share under the Nasdaq Green Equity Designation

Net operating income January–March 2024 SEK million 58.0

Fair value of investment properties 31 March 2024

SEK million

4,688.7 93%

Economic occupancy rate 31 March 2024

Summary of the Group's performance

	Jan–Mar			Full year
Summary of the Group's performance, SEK million	2024	2023	2023	2022
Rent revenue	66.3	61.1	247.2	217.9
Net operating income	58.0	50.6	209.7	181.3
Income from property management	21.3	17.7	90.5	74.2
Income from property management excl. currency effects	26.2	20.4	92.7	90.5
Income from property management excl. currency effects per share, SEK1	0.35	0.30	1.35	1.32
Income for the period	-9.2	-93.6	-200.6	207.3
Earnings per share for the period, SEK1	-0.12	-1.36	-2.92	3.01
Economic occupancy rate, %	92.5	95.9	94.9	95.8
Surplus ratio, %	87.5	82.8	84.8	83.2
Return on equity, %	-0.4	-3.9	-8.7	8.3
EPRA NRV per share, SEK2	30.7	42.4	41.2	44.1
Net loan-to-value ratio, %	41.3	40.7	43.4	38.3
Equity/assets ratio, %	52.2	51.7	49.9	53.4
Interest-coverage ratio, RTM, multiple	2.2	2.5	2.2	2.7

1) The average number of shares and key figures based on this have been restated by an adjustment factor of 1.1659 for all comparative years, corresponding to the

bonus issue element in this year's rights issue; for more information, refer to Note 7. 2) EPRA NRV per share is calculated on the actual number of outstanding shares.

FINANCIAL TARGETS

Growth and returns	Target	Outcome 2023	Outcome 2022	Outcome 2021
Average growth in property portfolio over time1	20%	2%	8%	20%
Fair value of property portfolio in 2027	SEK 8.0 billion	SEK 4.4 billion	SEK 4.3 billion	SEK 4.0 billion
Average annual growth in income from property management over time1	20%	22%	-14%	52%
Return on equity	At least 10 percent per year	-8.7%	8.3%	9.2%
1) The goal refers to the development over time from the

company's listing in 2020 to 2027. The outcome refers to the

annual change compared to the previous years.

Risk and dividends	Target	Outcome 2023	Outcome 2022	Outcome 2021
Equity/assets ratio	>30%	49.9%	53.4%	53.9%
Net loan-to-value ratio over time	<60%	43.4%	38.3%	38.3%
Interest-coverage ratio, long-term (RTM)	>2.2x	2.2x	2.7x	3.0x
Dividend policy targets.	Profits shall essentially be reinvested in order to utilise growth opportunities and achieve Annehem's growth

SUSTAINABILITY TARGETS

	Long-term target 2030	Outcome as of 31 March 2024	Outcome 2023	Outcome 2022
Proportion of property value that is sustainable in accordance with the EU Taxonomy Regulation, %	90%	85%	75%	81%
Environmentally certified property value, %	90%	83%	82%	76%
Income from green leases, % (relates to Sweden)	80%	41%	35%	27%

Annehem Fastigheter Interim report January–March 2024 3 | 31

CEO's comments

Turbulence in the business environment and the geopolitical situation are impacting Sweden in many ways. Sweden's NATO membership was approved during the quarter, and the efforts to strengthen both our armed forces and total defence are now intensifying. This will mean major investments across the country to strengthen society's contingency planning. These investments will also make a vital contribution to dampening the economic recession we find ourselves in and a greater demand for premises related to these could mean opportunities for Annehem.

The weak Swedish krona is enabling a strong export sector. Industry is holding the business cycle up, while other parts of the economy that are feeling the greater impact from high interest rates and inflation are in recession. This means that many companies are applying the brakes and initiating cost-saving measures, and we are seeing more workforce reductions.

The Riksbank's indications of a lowering of interest rates during the spring or summer are key positive signs for the property sector over both the short and long term. It is gratifying to see that inflation (CPI) fell to 4.1 percent during the quarter, which is a clear sign that the inflationary pressure is now easing. At the same time, the weak Swedish krona means continued uncertainty around when the highly anticipated drop in the interest rate will occur.

Rights issue provides us with new opportunities

During the quarter, we successfully concluded Annehem's preferential rights issue, which was oversubscribed 200 percent. This indicates firm confidence from our investors. This robust rights issue was conducted primarily to finance The Corner, the new office property in Malmö, which we took possession of in late 2023. The rights issue also provides us with opportunities to invest in our existing portfolio, where we see good possibilities to continue creating and adding value. We are also looking at new acquisitions to further diversify our property portfolio, primarily in the Nordic growth areas where we already have a presence. The capital contribution that Annehem received in conjunction with the rights issue provides us with the opportunities we need to continue increasing our income from property management.

Possession of residential property in Partille Port

In March, we took possession of our second residential property, a high-quality and Nordic Swan ecolabelled property with 90 rental apartments located adjacent to Partille Arena in the Partille Port district of Gothenburg. This is an area that is continuing to be developed with more residential properties, local services and a swim centre. The acquisition of this property follows an agreement with Peab that was signed in conjunction with Annehem's listing in 2020. Funding has been provided by bank loans (50 percent) and the remainder from cash on hand. The property has already been fully let.

Earnings

We delivered income from property management, excluding currency effects, that increased approximately 28 percent to SEK 26.2 million (20.4) compared with the year-earlier period. The increase is attributable primarily to improved rent revenue as a result of indexation of rents and contributions from our new acquisitions and effects of new leases.

Net interest increased compared with the year-earlier period, due in part to increased debt in conjunction with the acquisition of The Corner and in part because we have a higher average interest rate that totalled 4.3 percent (3.0).

We delivered strong net lettings this quarter as well, totalling SEK 12.0 million. Signed leases for all the homes in the Partille Port residential property, and a new lease for premises with Ängelholm Municipality, were vital contributions to this.

The interest-coverage ratio (RTM) for the period was 2.2 (2.5). The long-term interest rates showed volatility during the quarter, rising at the end of the quarter. This is due to the impact from the US economy and the geopolitical situation, which led to an increase in the long-term interest rates, with the five-year swap rate rising 25 basis points compared with a month ago.

The return requirement in the market continued upward by approximately 5 points during the quarter, but the effect was offset in part during this quarter once again by value-creating investments in the existing portfolio. Furthermore, we took the Partille Port residential property into possession, and overall this yielded a total positive change of 6.3 percent in the property value compared with the preceding quarter. With the prevailing market conditions, I am overall very satisfied with what we achieved during the quarter. Our underlying property operations are continuing to deliver good net operating income, increased income from property management and a strong net letting, and we are seeing possibilities for

lower interest expenses moving forward in pace with the reductions in the interest rate indicated by the Riksbank.

Property transaction market

As a result of the fact that interest rates have likely peaked, I am seeing an increasing number of signs in Sweden that the market has begun to gain momentum. A significantly higher number of transactions were concluded during the quarter compared with the year-earlier period. At the same time, there is still some distance between sellers and buyers as regards prices, and transactions are taking a long time to conclude. On the other hand, the transaction market in Finland remains weak, with the majority of the few transactions concluded taking place in the Helsinki area. All together, the transaction volume in the Nordics has risen 12 percent compared with the year-earlier period. In pace with the fall in interest rates, going forward I believe developments will remain positive, with good location and quality being the most soughtafter attributes regardless of property type.

The rental market

With our strategy of developing a sustainable and modern property portfolio in attractive locations in Nordic growth areas, we are well positioned for long-term profitable growth. Over the shorter term, however, we are seeing that the consequences of the recession that both Sweden and Finland is currently experiencing have become more evident, with weaker demand for office premises. We are seeing that our tenants, in conjunction with renegotiations, are demanding flexible solutions – and, in certain cases, adaptation of the premises for hybrid work. We have an advantage with our modern, high-quality and flexible office spaces, which means that we can often accommodate existing wishes, but we are noticing that vacant spaces are taking somewhat longer to lease.

Demand for our rental apartments is good, and this year's rent negotiations ended well with an increase of approximately 5.3 percent in Malmö, which is somewhat higher than current inflation. This is a good signal, since the rent increase for residential properties last year was much lower than inflation.

Our climate statement for 2023 shows a positive shift

During the quarter, we entered our third year as a green share under the Nasdaq Green Equity designation after a review in accordance with S&P Global Rating's CICERO Shades of Green assessment. Nasdaq's green designation of Annehem's share allows investors to make a conscious sustainable investment decision.

The efforts around the green shift are central to our long-term strategy. The result of our activities can be seen both in our climate statement and in our Taxonomy alignment. We have conducted climate-risk assessments of The Corner and the Partille Port residential property, which resulted in an increase in the proportion of Taxonomy-aligned properties in terms of property value from 75 percent to 85 percent during the quarter. The climate statement for 2023 also shows major shifts. We have reduced our CO2e emissions for Scope 1 and 2 by approximately 80 percent in comparison with the 2021 baseline. This decrease is primarily a result of the change of fuel to HVO100, a renewable diesel, in our vehicle fleet and the switch to climate-neutral district heating in Finland. We are also seeing a result of decreased energy consumption, improved environmental values among our other district heating suppliers and a continued improvement to data that is reported in.

However, our largest impact on CO2e emissions is in Scope 3, comprising 91 percent of the total 2023 footprint. That is why we are now setting a new target of reducing our Scope 3 footprint, with the objective cutting the footprint in half by 2030 and being net-zero by 2040. This should be viewed in light of Sweden's target of net-zero GHG emissions by 2045.

Ambitious goals and clear orientation

We began the year with good earnings and positive shifts. But I am humble when facing the future, given the cost situation and the prevailing recession. Regardless, we have ambitious goals and a clear orientation that we continue to work toward every day. With our financial position, long-term ownership and stable tenants, I am convinced that we have the right conditions for success.

I would like to thank our shareholders for their continued confidence in Annehem through their active participation in our preferential rights issue. I would also like to extend my warmest thanks to our employees, whose efforts and commitment have made a strong contribution to our results, both economically and as regards sustainability. You are the ones who make it possible, both for Annehem and our tenants!

Ängelholm, 2 May 2024 Monica Fallenius CEO

This is Annehem

Annehem is a growth-driven property company with customer-centric property management. We create attractive properties that are sustainable over the long term, where our tenants develop and thrive. We work systematically to increase the sustainability performance of our entire portfolio.

Our modern properties comprise the majority of our property portfolio. They have a high level of sustainability performance and are found in attractive locations in Nordic growth areas. We also manage older properties that have great sustainability potential, where we are promoting a substantial shift. Most of the portfolio currently comprises office properties that are complemented with selected properties in the segments of logistics properties and community service properties, as well as residential properties.

Vision

We are to be the most sustainable property company in the Nordics.

Our values

Professionalism – Committed – Long-term – Enablers

Our strategic cornerstones

Our four strategic cornerstones guide us in our long-term efforts toward the vision of becoming the most sustainable property company in the Nordics. Our strategy creates stability, profitability and a long-term perspective in our operations.

A sustainable and modern property portfolio in attractive locations in Nordic growth areas

Newly built, environmentally certified properties in locations with good transport links attract long-term tenants.

Create risk diversification over time through a diversified and green property portfolio

Our portfolio of office properties is complemented with selected properties in the segments of logistics and community service properties, as well as residential properties – all featuring a high sustainability performance and/or potential.

Focus on sustainable and effective property management through adding value and transitioning

Annehem Fastigheter has a high and measurable sustainability performance. The company strives to increase the value of its existing portfolio through sustainable, effective management and adding

Focus on acquisitions and a stable financial position enable profitable growth

l

Annehem Fastigheter has a clear growth plan for the property portfolio, enabled by a strong financial position with a high equity/assets ratio and low loan-to-value ratio.

Rent revenue by property type

Commercial offices 76% Community properties 9 % Grocery store 3 %

Residental 6%

Logistics 2 % Other 4 %

Property value by geography

Stockholm 35 %

• Helsinki 20 %
• Annehem Fastigheter Interim report January–March 2024 6 | 31 Gothenburg 9 %
  • Malmö 17 %
  • Ängelholm/Helsingborg 19 %

GOTHENBURG ÄNGELHOLM/ HELSINGBORG REGION

MALMÖ

HELSINKI

STOCKHOLM

Market

Comments on the business environment

After a year of sky-high inflation figures and increases in the key policy rate, which left an impression on the surrounding business world, the monetary policy measures are beginning to have an effect and the inflation trend has been moving downward since the second half of 2023.

Core inflation (CPIF) in Sweden has begun to approach the Riksbank target of 2 percent. In March, the CPIF was 2.2 percent and the CPI was 4.1 percent. The Swedish National Institute of Economic Research's (NIER) forecast indicates that the Riksbank's inflation target will be reached during the first half of 2024. During the last monetary policy meeting in March, the Riksbank chose to leave the key policy rate unchanged at 4.00 percent. The Riksbank announced that the key policy rate could be lowered in May or June, provided that the inflation outlook remains favourable and that the Swedish krona does not weaken further, or that the geopolitical situation in places such as the Middle East does not worsen.

Macro data Nordics

Country	Key policy rate1	Inflation2	Transaction volume (Jan–Mar)3
Sweden	4.00%	4.1%	SEK 22.3 billion
Finland/ECB	4.50%	3.0%	SEK 3.7 billion

1) Trading Economics.

2) Refers to CPI. Colliers Nordic Property Market Update Apr 2024.

3) Translated to SEK, pertains to property transaction volume. Colliers Nordic Property Market Update Jan–Mar 2024.

Property transaction market

The better macroeconomic situation has led to a cautious improvement in the property transaction market, and the slight increase in transaction activity provides the appraisers with more data to work with. During the first quarter of 2024, the property transaction volume in the Nordics totalled SEK 58.5 billion 1 , which entailed an increase of 12 percent compared with the year-earlier period.

¹ Colliers Nordic Property Market Update Jan–Mar 2024.

Comments on the Group's performance

Income statement

January to March period

Rent revenue amounted to SEK 66.3 million (61.1), other property income to SEK 15.3 million (12.0), and total property expenses to SEK -23.7 million (-22.5), which means that net operating income increased to SEK 58.0 million (50.6). The positive trend for rent revenue compared with the year-earlier period was mainly attributable to rent increases through the properties added, indexation and new lettings.

Other property income, which amounted to SEK 15.3 million (12.0), comprised invoiced operating costs, income from short-term leases and the rental guarantees issued by Peab for the Jupiter 11 and The Corner properties, which amounted to SEK 2.2 million (1.5) for January–March. Rental guarantees were issued for 100 percent of the vacant spaces in Jupiter 11 (from 1 May 2021) and The Corner (from 1 January 2024) by Peab. This guarantee is valid until the vacant spaces are leased, but for no longer than 36 months from the issuing date.

Operating expenses totalled SEK -16.4 million (-14.4), which is an increase in relation to previous years and is attributable primarily to the properties added. The property tax decreased SEK 0.3 million against previous years, totalling SEK -2.8 million (-3.1), owing to reassessment of some properties in 2023 that led to lower property tax. Total property expenses amounted to SEK -23.7 million (-22.5).

Income from property management amounted to SEK 21.3 million (17.7) for the period January–March, an increase year-on-year despite higher net interest income. Interest expenses amounted to SEK -32.8 million (-29.0) due to rising key policy rates and borrowing in order to finance the additional properties, but was offset by interest income from fixed-interest derivatives, which amounted to SEK 9.7 million (10.2) for the period. Other financial items amounted to SEK -4.8 million (-2.7) and mainly comprised currency effects of SEK 5.6 million (-5.6) and changes in value of currency futures of SEK -10.4 million (3.0), which had a negative impact on income from property management.

The effect of unrealised changes in value of properties amounted to SEK -35.2 million (-122.2). The effects of changes in value of fixed-interest derivatives amounted to SEK 14.9 million (-13.2). Tax expense for the period amounted to SEK -10.3 million (-23.8). The tax effect was largely due to deferred tax on the changes in value of the property portfolio and the measurement of fixed-interest derivatives at fair value. Income for the period amounted to SEK -9.2 million (-93.6).

Net operating income per quarter SEK million

Income from property management per quarter excl. currency effects SEK million

Balance sheet

The value of the company's investment properties amounted to SEK 4,688.7 million (4,336.3) on 31 March 2024. Of the total value, SEK 2.0 million comprised the effect of lease value of leasehold rights in the Kamaxeln 2 property.

During the quarter, Annehem Fastigheter acquired the Partille Port residential property at an underlying property value of SEK 250.0 million less incomplete projects of SEK -5.7 million, and settled the final purchase price of SEK -2.9 million for the Carl Florman property. The company invested in existing properties in an amount of SEK 35.7 million (14.3). Unrealised changes in value totalled SEK -35.2 million (-122.0). Together with currency translations of SEK 34.1 million (-5.3) for the portfolio in Finland, the total changes in value for the period amounted to SEK 276.0 million (27.1).

The company's equity amounted to SEK 2,591.7 million (2,411.2). Interest-bearing liabilities totalled SEK 2,119.8 million (1,956.1), of which SEK 2.0 million comprised lease liabilities attributable to leasehold rights in Kamaxeln 2. During the January–March period, Annehem took possession of the Partille Port residential property, and thus raised total new financing of SEK 125.0 million.

Cash flow statement

During the quarter, cash flow from operating activities amounted to SEK -1.5 million (29.2). The change was due to higher income from property management adjusted for unrealised currency effects as well as lower operating liabilities and operating receivables.

Cash flow from investing activities for the quarter amounted to SEK -290.1 million (-149.3), and mainly pertained to the acquisition of the Partille Port residential property, which amounted to SEK -244.3 million, the final purchase price of SEK -10.1 million for Carl Florman, investments related to Saab in Ljungbyhed Park, and investments in other properties totalling SEK -35.7 million.

Cash flow from financing activities for the quarter amounted to SEK 353.6 million (73.0), which pertains to loans raised related to the financing of the Partille Port residential property and repayment of a short-term loan of SEK 60 million for The Corner as well as repayment of the Group's credit facility.

Cash flow for the period amounted to SEK 61.9 million (-47.2)

Sustainable development

We are working systematically to move towards our vision to be the most sustainable property company in the Nordics. This means we acquire properties with high sustainability potential and are continually improving our property management and the measurability of sustainability actions in our property operations.

Highlights during the quarter

During the first quarter, we worked on the 2023 climate statement and continued our efforts to deliver on our sustainability targets. These efforts and examples of where the greatest progress has been made in our operations in terms of sustainability are presented below.

Climate statement

We completed our third climate statement and are seeing a continued positive shift as a result of our sustainable management. We have confirmed a decrease in emissions in Scope 1 and 2 of 80 percent compared with the 2021 baseline. This improvement is primarily the result of climate-neutral district heating in our Finnish properties and the switch to HVO100, a renewable diesel, which consists of hydrotreated vegetable oil, in our vehicle fleet. During the first quarter, we also set our Scope 3 target, which is a halving of emissions by 2030 and achieving net-zero emissions by 2040. Efforts to improve in Scope 3 will include development of know-how in property management, clearer partnerships with our suppliers and increased dialogue with our tenants.

Two more climate-risk assessments completed

In the first quarter, we conducted climate-risk assessments of The Corner and the Partille Port residential property, our latest acquisitions. In addition to the fact that these assessments are a key component of the Taxonomy alignment, which rose to 85 percent in Q1, they help Annehem to gain an overview of climate risks that the properties could potentially be exposed to as well as which measures could be taken to minimise the risks and costs that could arise as a result. Examples of risks include flooding and landslides as a result of severe rainfall or heat waves caused by climate change. The risk levels for both properties are overwhelmingly low.

Annehem Fastigheter enters its third year as a green share on Nasdaq Stockholm

Annehem was one of the first companies to receive the Nasdaq Green Equity Designation in 2022. The designation is proof that over 50 percent of Annehem's sales derive from green activities and that the business will continue to carry out a significant share of green investments. S&P Global Rating's CICERO Shades of Green conducts an external review of the company's sustainability activities every year. The 2023 review showed that 74 percent of the rental value and 81 percent of the fair value of properties is green, according to CICERO Shades of Green.

Measurable progress Q1 2024 (compared with outcome for full year 2023)

• 41 percent (35) of income is from green leases1 (applies to Swedish operations)
• 83 percent (82) of the property value is environmentally certified
• 85 percent (75) of the property value is sustainable (according to the EU Taxonomy)2)

1) A green lease is a commitment by both landlord and tenant to take a variety of concrete measures. The commitment includes sharing information about environmental ambitions and environmental measures, such as reducing energy use, creating opportunities for waste sorting, making good environmental choices when selecting materials, and increasing the rate of recycling when refurbishing. 2) Increase due to alignment of The Corner and Partille Port residential property.

Sustainability targets and follow-up

Sustainability targets 2023

Followed up annually		Unit	Long-term target	Target 2023	Outcome 2023	Outcome 2022
1. We create a sustainable property portfolio	Environmentally certified property value	Share	90%	>76%	82%	76%
	Property value that is aligned with the taxonomy	Share	90%	>85%	75%	81%
	Green financing	Share	90%	Measurement	87%	86%
	Property value with climate and vulnerability analysis	Share	90%	>82%	85%	82%
	Property value with energy class A and B	Share	90%	Measurement	82%	72%
2. We optimise	Property energy	MWh	-	Measurement	16,406	16,861
	Intensity Property energy	kWh/sqm	3% reduction/year	77	81	79
energy consumption in our properties	Scope 2: CO2e emissions from property energy	tonnes CO2e	Net zero by 2030	Measurement	118	119*
	Self-generated renewable energy	kWh/sqm	3	Measurement	0.8	0.4
	Intensity Tenant energy	kWh/sqm	to be set in 2024	Measurement	41	44
	Scope 3: CO2e emissions from tenant energy	tonnes CO2e	to be set in 2024	Measurement	634	737
3. We help our tenants to be	Green leases	Share of contract value	80%	>30%	35%	27%
sustainable	Tenant access to waste recycling	Share	100%	100%	100%	100%
	Water consumption	l/sqm	1% reduction/year	212	315	237**
	Training in Annehem's sustainability policy (incl. CoC)	Share of employees	100%	100%	100%	33%
	Audit of strategic suppliers	Share	100%	100%	100%	100%
4. We take responsibility	Biodiversity: Inventoried species in our properties	number	Draw up an inventory and promote establishment of more species	Measurement	400	175
	Share of fossil-free fuel in service vehicles	Share	100%	>90%	85%	5%
	Scope 1: CO2e emissions from company cars and service vehicles	tonnes CO2e	Net zero by 2030	Measurement	17	24
	Proportion of environmentally certified company cars	Share	100%	100%	100%	100%
	Scope 3: CO2e emissions from business travel	tonnes CO2e	to be set in 2023	Measurement	19	70
	Scope 3: CO2e emissions from projects and maintenance	tonnes CO2e	to be set in 2023	Measurement	425	1,217
	Scope 1: CO2e emissions from refrigerants	tonnes CO2e	Net zero by 2030	Measurement	784	0
5. We create satisfied tenants and long term relationships	Customer satisfaction index	index 0–100	Above industry average	>80	74	77
	Average contract period	years	Seek long-term relationships	Measurement	4.2	5.2
6. We care about	Satisfied employees, confidence index	index 0–100	>70	>70	81	83
	Attendance rate	Share	>97.0%	>97.0%	99.3%	97,3%
each other		Board (% women men)		50% ±10	29% 71%	25% 75%
	Gender distribution	Management team (% of women men) Employees (% of women men)	50% ±10		75% 25% 60% 40%	50% 50% 65% 35%
	Perceived inclusion	index 0–100	High level of inclusion	Measurement	98	94

* Figure updated owing to use of climate-neutral district heating in Ultimes I&II in Helsinki ** Corrected data

Our properties

Annehem Fastigheter owned assets in the form of properties on 31 March 2024 at a fair value of SEK 4,688.7 million. All properties are 100-percent owned by the company. The properties largely comprise modern and sustainable commercial, community service and residential properties.

For the period, net letting amounted to SEK 12.0 million (8.0), distributed among newly signed leases amounting to SEK 29.1 million (9.5) less terminated leases amounting to SEK 17.1 million (1.5). Average remaining contract term, excluding residential properties, is 4.8 years.

Detailed description of property portfolio

Change in portfolio during 2024

					Annualised rental
					value,
Transactions during the year Event		City	From	Area, sqm	SEK million
Partille 11:70	Acquired	Partille	2024-03-28	4,946	11.6

Property portfolio on 31 March 2024

					Annualised rental
				Rent-revenue	value,
Property	Property name	City	Area, sqm	SEK million	SEK million
Valhall Park	Barkåkra 50:3	Ängelholm	51,564	39.7	41.0
Ljungbyhed Park	Sjöleden 1:5-1:17	Ljungbyhed	73,234	34.5	39.2
Kamaxeln 2	Kamaxeln 2	Malmö	950	1.7	1.7
Stenekullen 2	Stenekullen 2	Malmö	4,937	13.7	15.5
Jupiter 11	Jupiter 11	Helsingborg	4,807	10.6	10.6
Ulriksdals Center	Sadelplatsen 3	Stockholm	12,455	44.7	44.7
Sadelplatsen 4	Sadelplatsen 42	Stockholm	13,494	13.8	19.8
Ledvolten	Solna Ledvolten 1	Stockholm	4,268	15.4	15.4
Almnäs	Almnäs 5:28	Södertälje	2,158	5.6	5.6
Partille Port	Partille 11:60	Partille	6,431	14.9	15.1
Carl Florman	Carl Florman 1	Malmö	3,259	6.7	6.8
The Corner	Hemvistet 2	Malmö	7,432	26.7	26.7
Partille Port residential	Partille 11:70	Partille	4,946	10.8	11.6
Ultimes Business Garden	Ultimes I & II	Helsinki	17,015	64.3	73.8
		Total	206,950	303.0	327.4

1) Leasing refers to ground leases amounting to SEK 2 million to Kamaxeln.

2) The property largely comprises a multi-storey car park (475 parking spaces) and, in addition, office premises of 2,994 sqm.

Summary of value trend

Changes in the property portfolio	Jan-Mar		Full year
SEK million	2024	2023	2023
At beginning of the period	4,412.7	4,309.2	4,309.2
Acquired properties	241.4	139.9	534.9
Investments in existing properties	35.7	14.3	95.8
Divestments of properties	-	-	-252.1
Unrealised changes in fair value	-35.2	-122.0	-266.0
Currency effect on properties abroad	34.1	-5.1	-9.1
At end of the period	4,688.7	4,336.3	4,412.7

Acquisitions and investments

During the first quarter, the Partille Port residential property in Gothenburg was taken into possession at a total underlying property value of SEK 250.0 million less incomplete projects of SEK -5.7 million, and settled the final purchase price of SEK -2.9 million for the Carl Florman property. Investments totalling SEK 35.7 million (14.3) were also made in existing properties, with the investments attributable primarily to the Ljungbyhed Park, Valhall Park properties and completion of The Corner.

Specification of income 2024

Summary of lease terms1 (percentage of rental value for each year)

1) Excluding housing contracts.

Property valuations

At least once every year Annehem commissions complete valuations from external appraisal institutes for all properties in the portfolio. The external appraisers are to be property appraisers authorised by Samhällsbyggarna, or similar Nordic association. The external valuations are to be conducted in accordance with guidelines from IPD Svenskt Fastighetsindex.

The fair value of properties is based on internal valuations with the value date 31 March 2024. During the January to March period, fair value decreased by SEK 35.2 million, primarily due to changed return requirements. At 31 March 2024, the average valuation yield amounted to 5.26 percent (5.24 percent, 31 December 2023). During the January to March period, Annehem Fastigheter also invested in existing properties in an amount of SEK 35.7 million. The investments were attributable to modernisation of Saab's premises in Ljungbyhed Park and other minor investments in other properties. The properties are measured at fair value where classification is conducted at level 3 in accordance with IFRS 13.

Current earnings capacity

SEK million	2024-03-31
Rent revenue	327.4
Vacancy	-23.7
Other property income	20.4
Rent revenue	324.1
Property expenses	-88.3
Property tax	-14.2
Net operating income	221.6
Other operating income	-3.0
Central administration	-37.0
Net financial items	-96.6
Income from property management	85.0

Annehem Fastigheter presents its earnings capacity on a 12-month basis on 31 March 2024 in the table above. The earnings capacity is not a forecast for the current year or the next 12 months but should only be viewed as a theoretical snapshot and is solely presented as an illustration. The current earnings capacity does not include an assessment of the future trends for rents, vacancy rates, changes in value, purchases or sales of properties or other factors.

The current earnings capacity is based on the properties owned on 31 March 2024 and their financing, after which the current earnings capacity illustrates the subsequent annualised earnings for Annehem Fastigheter. Transactions involving taking possession of or vacating a property that took place after 31 March are therefore not included in the calculation. Annehem Fastigheter's income statement is also affected by the value growth in the property portfolio and future property acquisitions and/or property sales. None of the above were taken into account in the current earnings capacity. The earnings capacity is based on the property portfolio's contracted rent revenue, normalised property expenses and administration costs pertaining to the current portfolio. Costs for interest-bearing liabilities used the Group's average interest-rate level plus accrued borrowing expenses.

Comments on earnings capacity

The rent revenue and net operating income increased compared with the earnings capacity on 31 December 2023. The positive trend in rent revenue is attributable primarily to addition of the Partille Port residential property, new leases, indexation of leases starting from 1 January 2024 and rental guarantees being issued for vacant spaces in the Jupiter 11 property (from 1 May 2021 to 30 April 2024) and The Corner (from 1 January 2024 to 31 December 2026) by Peab. If the vacancies are leased to other tenants, the guarantees are not paid. At the end of March 2024, the economic occupancy rate was 92.5 percent (95.9).

Sensitivity analysis property portfolio

At 31 March 2024, the average valuation yield amounted to 5.26 percent. Unrealised changes in value in the property portfolio in the case of changes in the valuation yield are presented in the table below.

Change, %-points	SEK million
+/- 0.5%	-193.0 / 209.0
+/- 1.0%	-395.0 / 457.0

Financing

Summary of the company's financing situation

At the end of the first quarter, interest-bearing liabilities amounted to SEK 2,119.8 million (1,956.1); the increase year-on-year is due to further acquisitions. The interest-bearing liabilities consist exclusively of bank loans, all of which are secured with mortgage deeds.

The interest-coverage ratio multiple was 2.1 (2.5) for the quarter, which means the loan covenants are met. The interest-coverage ratio, multiple RTM, was 2.2 (2.5). At 31 December, the net loan-to-value ratio in the portfolio was 42.7 percent (40.7).

The average remaining fixed interest term and loan maturity including fixed-interest derivatives was 2.57 years and 1.83 years, respectively. At the end of the quarter, the average interest rate was 4.3 percent.

Change in loan structure during the period

	Jan-Mar	Full year
SEK million 2021	2024	2023	2023
Interest-bearing liabilities at beginning of the period	2,036.3	1,889.6	1,889.6
New external bank loans	125.0	75.9	345.2
Change in lease liability	-0.1	-0.1	-0.3
Amortisations of external bank loans	-63.9	-2.9	-183.6
Changes in capitalised loan costs	0.9	-1.0	2.5
Currency effects	21.6	-5.4	-17.1
Interest-bearing liabilities at end of the period	2,119.8	1,956.1	2,036.3

Available liquidity

	Jan-Mar		Full year
SEK million	2024	2023	2022
Cash and cash equivalents	181.3	190.2	119.4
Unused loan facility	-	125.0	125.0
Total	181.3	315.2	244.4

Fixed-interest and loan maturity structure

				Average interest
				rates in the swap	Capital
contract,	swaps	Fixed interest 2		portfolio 5	commitment3
SEK million	SEK million	SEK million	Share	SEK million	SEK million	Share
566.4	-	566.4	26.7%	-	55.9	2.6%
596.3	-479.2 4	117.1	5.5%	1.57%	1549.1	73.1%
240.2	-	240.2	11.3%	-0.07%	514.8	24.3%
234.0	479.24	713.2	33.6%	1.63%	-	0.0%
425.0	-	425.2	20.0%	2.70%	-	-
57.9	-	57.9	2.7%	2.78%	-	-
2,119.8	-	2,119.8	100%	1.67%	2119.8	100.0%
	Volume active	Future-started

1) Pertains to lease liability for ground leases that are regarded as perpetual.

2) Including fixed-interest derivatives. 3) The capital amount pertains to undiscounted values. The balance sheet includes borrowing fees in interest-bearing liabilities.

4) The contracted interest rate for forward swaps amounts to 2.06 percent.

Fixed-interest structure, SEK million

Summary of financial key figures

	Jan-Mar	Full year
Mkr	2024	2023	2023
Interest bearing debt (Mkr)	2,119.8	1,956.1	2,036.3
Unused facility, (Mkr)	-	125.0	125.0
Volume interest swaps, (Mkr)	1,558.2	1,475.1	1,365.1
Value interest swaps, (Mkr)	46.9	78.2	29.7
Debt/equity ratio, multiple	0.8	0.8	0.9
Net loan to value ratio, %	41.3	40.7	43.4
Interest coverage multipel, quater, ICR	2.1	2.1	2.2
Interest coverage multipel rolling 12 months	2.2	2.7	2.2
Average interest rate %	4.3	3.0	4.3
Average interest rate including unused loan facility, %	4.3	3.1	4.4
Average fixed interest period, Years	2.57	0.87	2.41
Average capital commitment period, Years	1.83	2.28	2.04

Sensitivity analysis

The average interest for the January to March 2024 period was 4.3 percent. For a 12-month interest-rate sensitivity in an existing loan portfolio, the effect of changes in average interest rates on profit is presented in the table below:

Change, %-points		SEK million
+/- 1,0%	+/-	4.2
+/- 2,0%	+/-	8.4

Other information

The company's shareholders

Shareholders	Numbers of shares	Capital, %	Votes, %
Ekhaga utveckling AB1	21,130,923	23.9	49.8
Mats och Fredrik Paulsson med familjer	5,205,520	5.9	11.3
Volito AB	7,350,000	8.3	6.3
PriorNilsson fonder	3,995,213	4.5	2.2
Alcur Select	3,777,358	4.3	2.1
Peabs vinstandelsstiftelse	3,755,700	4.2	2.1
Verdipapirfondet Odin Eiendom	3,340,537	3.8	1.8
UBS Switzerland AG	386,922	0.4	1.4
Carnegie fonder	2,560,327	2.9	1.4
Mats Paulssonstiftelserna	2,605,821	2.9	1.2
10 largest share owners, sum	54,108,321	61.1	79.6
Other share owners	34,380,500	38.9	20.4
Total	88,488,821	100.0	100.0

1) Refer to further information in Note 6.

Risk

For a description of Annehem's risks, refer to the Risks section on page 26, and the Risks and risk management section of Annehem's 2023 Annual Report.

Organisation and employees

Annehem Fastigheter had an average of 16 full-time employees in the first quarter of 2024. Including resources working on a consultative basis, the number of employees amounts to 17. Annehem Fastigheter had 17 employees and 1 resource on a consulting basis during the 2023 comparative period.

14 May 2024 19 July 2024 24 October 2024

Significant events after the end of the period

No significant events to note.

Financial calendar

2024 Annual General Meeting Half-year report January–June 2024 Interim Report January–September 2024

Review

This report has not been subject to review by the company's auditors.

Assurance of the CEO

The CEO gives assurance that the interim report provides a true and fair overview of the development of the Parent Company's and the Group's operations, their financial position and performance, and describes material risks and uncertainties facing the Parent Company and other companies in the Group.

Ängelholm, 2 May 2024

Monica Fallenius

CEO

This information is information that Annehem Fastigheter AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, on 3 May 2024 at 8:00 a.m. CEST.

Consolidated income statement

	Jan-Mar		Full year
SEK million	2024	2023	2023
Rent revenue	66.3	61.1	247.2
Other property income	15.3	12.0	44.9
Total income	81.7	73.1	292.1
Property expenses
Operating costs	-16.4	-14.4	-47.5
Maintenance costs	-1.5	-1.8	-11.6
Property tax	-2.8	-3.1	-9.8
Property administration	-3.0	-3.2	-13.4
Net operating income	58.0	50.6	209.7
Central administration	-9.0	-11.1	-36.1
Other operating income	3.4	0.9	5.2
Other operating costs	-3.2	-1.3	-10.3
Interest income	9.7	10.2	53.4
Interest expenses	-32.8	-29.0	-129.3
Other financial items 1	-4.8	-2.7	-2.2
Income from property management	21.3	17.7	90.5
Changes in values of properties, realised	-	-	-11.8
Changes in values of properties, unrealised	-35.2	-122.0	-266.0
Changes in values of derivatives	14.9	-13.2	-61.8
Income before tax for the period	1.1	-117.4	-249.1
Current tax	-0.3	-0.2	0.0
Deferred tax	-10.0	24.0	48.5
Net income for the period attributable to the company shareholders	-9.2	-93.6	-200.6
Numbers of shares, before and after dilution	88,488,821	58,992,548	58,992,548
Average numbers of shares, before and after dilution	74,412,309	68,781,704	68,781,704
Earnings per share, before and after dilution, SEK2	-0.12	-1.36	-2.92

1) Other financial items comprise currency effects and realised and unrealised effects of currency futures.

2) The average number of shares and key figures based on this have been restated by an adjustment factor of 1.1659 for all comparative years, corresponding to the

bonus issue element in this year's rights issue; for more information, refer to Note 7.

Consolidated statement of profit or loss and other comprehensive income

	Jan-Mar		Full year
SEK million	2024	2023	2023
Profit for the period	-9.2	-93.6	-200.6
Other comprehensive income
Items that will be reclassified to profit or loss
Change in market value of derivative instruments	0.0	-0.2	-0.7
Fiscal effect on derivative instruments	0.0	0.0	0.1
Translation differences from foreign operations for the period	7.7	3.8	2.3
Total other comprehensive income	7.7	3.6	1.7
Comprehensive income for the period attr. to parent company shareholders	-1.5	-90.0	-198.9

Consolidated balance sheet

SEK million	2024-03-31	2023-03-31	2023-12-31
ASSETS
Fixed assets
Intangible fixed assets	0.2	0.1	0.2
Investment properties	4,688.7	4,336.3	4,412.7
Equipment and machinery	5.5	5.0	6.2
Derivative instrument	46.9	88.9	33.3
Other fixed assets	1.4	1.3	1.4
Total fixed assets	4,742.7	4,431.6	4,453.9
Current assets
Accounts receivables	2.9	2.7	3.5
Current receivables	37.1	32.4	34.0
Derivative instruments	-	2.5	0.0
Cash and cash equivalents	181.3	190.2	119.4
Total current assets	221.3	227.7	156.8
TOTAL ASSETS	4,964.1	4,659.4	4,610.7
EQUITY AND LIABILITIES
Equity
Share capital	0.8	0.5	0.5
Other contributed capital	2,077.5	1,786.9	1,786.9
Reserves	30.9	22.8	23.3
Retained earnings including net income for the year	482.5	600.9	491.6
Equity attributable to parent company shareholders	2,591.7	2,411.2	2,302.3
Non-current liabilities
Current interest-bearing liabilities	2,063.9	1,722.1	1,920.1
Derivative instruments	0.0	8.2	3.6
Other non-current liabilities	1.9	3.2	1.8
Deferred tax liabilities	168.1	170.4	157.6
Provisions for pensions	1.7	1.6	1.7
Total non-current liabilities	2,235.7	1,905.6	2,084.9
Current liabilities
Current interest-bearing liabilities	55.9	234.0	116.2
Accounts payable and other liabilities	19.5	15.6	25.6
Current tax liabilities	0.1	1.0	0.6
Other current liabilities	61.2	92.0	81.2
Total current liabilities	136.7	342.7	223.5
Total liabilities	2,372.4	2,248.2	2,308.4
TOTAL EQUITY AND LIABILITIES	4,964.1	4,659.4	4,610.7

Consolidated cash flow statement

	Jan-Mar		Full year
SEK million	2024	2023	2023
Income from property management	21.3	17.7	90.5
Items not affecting cash flow
Depreciation	0.2	0.1	0.9
Unrealised currency effects	-8.0	-4.0	7.6
Other non-cash items	0.9	-1.1	1.9
Income tax paid
Changes in working capital
Operating receivables	-2.5	-10.1	-14.7
Operating liabilities	-13.4	26.5	16.3
Cash flow from operating activities	-1.5	29.2	102.4
Investing activities
Investments in existing properties	-35.7	-14.3	-95.8
Acquisitions of investment properties	-254.4	-135.0	-527.9
Divestment of fixed assets	-	-	245.0
Investments in intangible fixed assets	-	-	-4.7
Cash flow from investing activities	-290.1	-149.3	-383.4
Financing activities
Borrowings	125.0	75.9	345.2
Repayment of loans	-63.9	-2.9	-183.6
Rights issue	292.5	-	-
Cash flow from financing activities	353.6	73.0	161.6
Cash flow for the period	61.9	-47.2	-119.4
Cash and cash equivalents at the beginning of the period	119.4	237.9	237.9
Exchange rate difference in cash and cash equivalents	0.0	-0.6	0.9
Cash and cash equivalents at the end of the period	181.3	190.2	119.4

Consolidated statement of changes in equity

Mkr	2024-03-31	2023-03-31	2023-12-31
Ingående balans eget kapital	2,302.3	2,501.1	2,501.1
Periodens resultat	-9.2	-93.6	-200.5
Övrigt totalresultat för perioden	7.7	3.6	1.7
Periodens totalresultat	-1.5	-90.0	-198.8
Företrädesemission	290.9	-	-
Utgående balans eget kapital hänförligt till moderbolagets ägare	2,591.7	2,411.1	2,302.3

Parent Company income statement

	Jan-Mar		Full year
SEK million	2024	2023	2023
Revenue	13.0	18.0	46.1
Administration costs	-10.0	-10.2	-40.3
Operating result	3.1	7.8	5.8
Financial items
Financial net	25.9	24.9	94.4
Result after financial items	29.0	32.7	100.2
Appropriations	-	-	-11.8
Result before tax	29.0	32.7	88.3
Deferred tax	-0.3	0.6	0.5
Result for the period	28.7	33.3	88.9

Parent Company balance sheet

SEK million	2024-03-31	2023-03-31	2023-12-31
ASSETS
Fixed assets
Intangible fixed assets	0.2	0.1	0.2
Equipment and machinery	1.4	1.6	3.2
Financial fixed assets
Shares in Group companies	116.1	18.9	116.1
Long-term receivables, Group companies	2,291.3	1,897.2	2,134.0
Derivative instruments	27.4	39.5	26.3
Other fixed assets	1.4	1.3	1.4
Total financial fixed assets	2,436.2	1,956.9	2,277.8
Total fixed assets	2,437.8	1,958.5	2,281.2
Current assets
Accounts receivables	77.7	59.9	70.4
Accounts receivables from related parties	5.9	3.6	7.1
Derivative instruments	0.5	2.5	0.0
Cash and cash equivalents	123.9	142.2	27.8
Total curret assets	208.0	208.2	105.3
TOTAL ASSETS	2,645.8	2,166.7	2,386.5
EQUITY AND LIABILITIES
Equity
Restricted equity
Share capital	0.8	0.5	0.5
Other contributed capital	290.2	-	-
Unrestricted equity
Retained earnings	2,179.7	2,092.2	2,092.2
Result for the year	28.7	33.2	88.9
Total equity	2,499.3	2,126.0	2,181.6
Provisions
Provision for pensions and similar obligations	1.8	1.7	1.7
Provision for deferred tax	6.0	5.6	5.6
Total provisions	7.7	7.2	7.4
Non-current liabilities
Derivative instruments	0.0	8.2	0.3
Total non-current liabilities	0.0	8.2	0.3
Current liabilities
Derivative instruments	-	-	1.9
Liabilities to Group companies, accounts payable	118.8	5.4	118.8
Accounts payable	8.7	1.3	4.3
Other current liabilities	11.2	18.6	72.3
Total current liabilities	138.7	25.3	197.3
TOTAL EQUITY AND LIABILITIES	2,645.8	2,166.7	2,386.5

Parent Company cash flow statement

	Jan-Mar		Full year
SEK million	2024	2023	2023
Result before tax	29.0	32.7	88.3
Items not affecting cash flow
Depreciations	0.2	0.1	0.4
Unrealised currency effects	-3.7	-4.4	10.8
Other items not affecting cash flow	0.0	-	-1.8
Changes in working capital
Operating receivables	-6.1	-14.6	-30.8
Operating liabilities	-58.4	6.3	77.9
Cash flow from operating activities	-39.1	20.1	144.8
Investing activities
Investments in machinery and equipment	-	-	-2.1
Cash flow from investing activities	-	-	-2.1
Financing activities
Changes interest-bearing receivables, Group companies	-157.3	-86.3	-323.3
Rights issue	292.5	-	-
Cash flow from financing activities	135.2	-86.3	-323.3
Cash flow for the period	96.1	-66.2	-180.6
Cash and cash equivalents in the beginning of the period	27.8	208.4	208.4
Cash and cash equivalents at the end of the period	123.9	142.2	27.8

Comments on Parent Company

The Parent Company had income related to invoiced management fees and expenses related to personnel and external services, including communication, legal and auditing.

No special risks exist for the Parent Company apart from those named for the Group in the Risks section.

Notes

NOTE 1 BASIS OF PREPARATION AND ACCOUNTING POLICIES

The interim report is designed in accordance with the EU endorsed IFRS standards and the EU endorsed interpretations of applicable standards, IFRIC. This condensed consolidated interim report was prepared in accordance with IAS 34 Interim Financial Reporting, and applicable provisions of the Swedish Annual Accounts Act. The interim report for the Parent Company was prepared in accordance with Chapter 9 of the Swedish Annual Accounts Act, Interim reports. The accounting policies for the Group and the Parent Company are the same accounting policies and applied calculation bases as in the most recent annual report.

Disclosures in accordance with IAS 34.16A occur in the financial statements and also in associated notes in other parts of the interim report.

NOTE 2 ESTIMATIONS AND ASSESSMENTS

The preparation of the interim report requires management to make assessments, estimations and assumptions that affect the application of accounting policies and the recognised amounts of assets, liabilities, income and expenses. The final outcome can deviate from the results of these estimations and assessments.

Valuation of investment properties

Annehem Fastigheter's portfolio is measured in the balance sheet at fair value and changes in value are recognised in the income statement. The fair value is based on internal measurements that are performed regularly and the properties are also valued each year by external independent appraisers, in accordance with the valuation policy. The value of properties is not only affected by the supply and demand in the market but by several other factors, partly property-specific factors such as occupancy rate, rent level and operating costs, partly market-specific factors such as direct-return requirement and cost of capital derived from comparable transactions in the property market. A deterioration in property or market-specific conditions can lead to drop in the value of properties, which could have an adverse impact on Annehem Fastigheter's operations, financial position and earnings.

The valuation also requires an assessment of and assumptions on future cash flows and determination of the discount factor (return requirement). Annehem routinely monitors inflation, the key policy rate and return requirements, and these assumptions form the basis for calculation of the fair value. The inflation assumption in the values for the coming year is 2 percent. At 31 March 2024, the average valuation yield amounted to 5.26 percent (5.24 percent, 31 December 2023). As a means of reflecting this uncertainty in assumptions made and assessments, the property value is normally stated in an uncertainty range of +/- 5– 10 percent. The properties are measured at fair value where classification is conducted at level 3 in accordance with IFRS 13.

Tax assessments

At the end of the first quarter 2024, there was approximately SEK 2.2 million in loss carryforwards that had not been capitalised.

NOTE 3 SEGMENTS

Annehem Fastigheter's operations comprise two operating segments, meaning the operations consist of one business operation that generates income and costs. The operating segment is organisationally divided into two different segments:

• 1. Sweden Region, including Stockholm, Malmö, Ljungbyhed, Ängelholm, Gothenburg and Helsingborg
• 1. Rest of Nordics Region, including Helsinki

2024		Jan-Mar
SEK million	Sweden	Other Nordics	Staff	Total
Rent revenue	52.2	14.2	-	66.3
Net operating income	45.3	12.7	-	58.0
Income from property management	42.2	3.8	-24.6	21.3
Income before tax	10.2	4.9	-14.0	1.1
Investment properties, fair value	3,773.6	915.1	-	4,688.7

Group staff includes the Parent Company and holding companies within the Group, which are not operational companies. Transactions within Group staff include management fees and other administrative expenses.

2023		Jan-Mar
SEK million	Sweden	Other Nordics	Staff	Total
Rent revenue	43.5	17.6	0	61.1
Net operating income	32.9	17.2	0.5	50.6
Income from property management	29.5	8.2	-20.0	17.7
Income before tax	-63.5	-25.1	-28.8	-117.4
Investment properties, fair value	3,145.4	1,190.9	-	4,336.3

NOTE 4 REVENUE FROM CONTRACTS WITH CUSTOMERS

	Jan-Mar	Full year
SEK million	2024	2023	2023
Property tax	4.7	2.0	3.9
Rental guarantees	1.9	1.9	3.0
Other property revenue	8.8	8.6	37.9
Total other property revenue	15.3	12.0	44.9

Other property income largely comprises reinvoiced media costs (electricity, heating, water) to tenants, reinvoiced property tax, compensation related to airports, rental guarantees, and income from leasing ad hoc housing.

NOTE 5 FINANCIAL INSTRUMENTS MEASURED AT FAIR VALUE

Annehem Fastigheter holds forward exchange contracts and fixed-interest derivatives to mitigate the impact of fluctuations in currency and interest rates. The derivatives are used solely for financial hedging purposes as part of Annehem Fastigheter's financial policy, and not for speculation.

As of 31 March 2023, the Group holds fixed-interest derivatives in SEK and EUR, and currency futures in EUR. As of 31 March 2024, the market value of fixed-interest derivatives amounted to SEK 46.5 million (80.7) and currency derivatives to SEK 0.5 million (2.5).

The Group deems that other carrying amounts for the stated financial assets and liabilities recognised at cost and amortised cost correspond approximately to fair value, due to short maturity dates, that reservations have been made for anticipated credit losses and that any penalty interest will be charged.

NOTE 6 TRANSACTIONS WITH RELATED PARTIES

The company is a related party to Peab AB, through the companies' shared largest shareholders. The shares are held directly and indirectly by Ekhaga Utveckling AB. On 31 March 2024, Fredrik Paulsson controlled more than 50 percent of votes in Ekhaga Utveckling AB. In addition, Fredrik Paulsson held 0.86 percent of shares in Annehem on 31 March 2024. Fredrik Paulsson therefore controlled more than 50 percent of votes in Annehem through his direct and indirect holding on 31 March 2024.

	Jan-Mar		Full year
SEK million	2024	2023	2023
Acquired properties	244.3	139.9	534.9
Accounts receivables	26.5	0.2	0.2
Accounts payable	3.1	2.7	12.3

NOTE 7 RESTATEMENT EFFECTS, RIGHTS ISSUE

Through the rights issue that was conducted in March 2024, Annehem's share capital increased by SEK 249,999.99 from SEK 500,000 to SEK 749,999.99 and the total number of shares in Annehem increased by 29,496,273, of which 3,431,995 Series A shares and 26,064,278 Series B shares. Following the rights issue, the number of shares in Annehem is 88,488,821, of which 10,295,986 Series A shares and 78,192,835 Series B shares. Shares outstanding, the average number of shares, and key figures based on these have been restated by an adjustment factor of 1.1659 for all comparative years, corresponding to the bonus issue element in this year's rights issue.

	Jan-Mar 2024	Jan-Mar 2023		Full year 2023
Mkr	After recount	After recount	Before recount	After recount	Before recount
Income fr. property management excl. currency effects per share	0.35	0.23	0.35	1.05	1.57
Earnings per share, before and after dilution, SEK	-0.12	-1.06	3.62	-2.27	1.70
Number of shares	88,488,821	58,992,548	58,992,548	58,992,548	58,992,548
Average numbers of shares	74,412,309	68,781,704	68,781,704	68,781,704	68,781,704

Risk factors

Risks in the value of the properties

Annehem Fastigheter is exposed to risk related to changes in the value of and incorrect valuation of its properties. Annehem Fastigheter's investment properties are measured at fair value in the balance sheet and realised and unrealised changes in value are recognised in profit or loss. According to Annehem Fastigheter's valuation policy, external valuation reports are to be obtained at least once each year for all properties.

Macroeconomic risks

The company's operations are affected by macroeconomic factors such as the overall economic trends, national and regional economic trends, employment, production of properties, infrastructure developments, population growth, inflation and interest rates, as well as war and crises. Annehem Fastigheter operates in Stockholm, Helsinki, Malmö, Gothenburg and Helsingborg/Ängelholm, which are geographic markets that the company considers particularly attractive, based on historical data. Consequently, Annehem Fastigheter is primarily exposed to the regional economic climate in these geographic markets and there is a risk that these geographic markets will not develop as anticipated by the company or in the same way as the markets' historical development, which could have a material negative impact on Annehem Fastigheter's operations and financial position.

Environmental risks

Annehem Fastigheter's operations entail environmental risks and the company is subject to environmental regulations that mean that the company could be liable to claims in the event of non-compliance. Even if Annehem Fastigheter will conduct inspections in conjunction with the acquisition of individual properties, there is a risk that the previous property owner, or Annehem Fastigheter, failed to comply with environmental regulations or that previous property owners or operators caused pollution.

See also the Risks and risk management section in the 2023 Annual Report.

Financial key figures

Number of shares

2024	2023	2023
10,295,986	8,002,994	8,002,994
78,192,835	60,778,710	60,778,710
88,488,821	58,992,548	58,992,548
74,412,309	68,781,704	68,781,704

1) The average number of shares and key figures based on this have been restated by an adjustment factor of 1.1659 for all comparative years, corresponding to the bonus issue element in this year's rights issue; for more information, refer to Note 7.

Income from property management

Annehem Fastigheter's operations focus on growth in cash flow from day-to-day administration, meaning growth in income from property management. The target is that income from property management per share will increase over time by an average of 20.0 percent per year. Shown below is the income from property management, excluding currency effects, which relate to the Group's currency swap derivatives and the currency translations of internal loans in EUR.

	Jan-Mar		Full year
SEK million	2024	2023	2023
Currency swaps	-10.4	2.9	2.5
Revaluation of internal loans	5.6	-5.6	-4.7
Currency effects	-4.8	-2.7	-2.2

Income from property management per share1

		Jan-Mar	Full year
SEK million	2024	2023	2023
Income from property management	21.3	17.7	90.5
Currency effects	4.8	2.7	2.2
Income fr. property management excl. currency effects	26.2	20.4	92.7
Number of shares	88,488,821	58,992,548.0	58,992,548
Average number of shares	74,412,309	68,781,704.2	68,781,704
Income fr. property management excl. currency effects per share	0.35	0.30	1.35

1) The average number of shares and key figures based on this have been restated by an adjustment factor of 1.1659 for all comparative years, corresponding to the bonus issue element in this year's rights issue; for more information, refer to Note 7.

Long-term net asset value (EPRA NRV)1

Net asset value is the accumulated capital managed by the company on behalf of its owners. Using this capital, Annehem aims to generate return and growth at a low level of risk. Net asset value can be determined in various ways, with the main influence from a time perspective and the turnover rate of the property portfolio. The long-term net asset value is based on the balance sheet and adjusted for items that do not require payment in the near future, such as in Annehem's case deferred tax liabilities.

SEK million	2024-03-31	SEK/share	2023-03-31	SEK/share	2023-12-31	SEK/share
Equity accoring to balance sheet	2,591.7	34.8	2,411.2	40.9	2,302.3	35.1
Add back
Deferred tax according to balance sheet	168.1	-	170.4	-	157.6	-
Interest rate derivatives	-46.9	-	-80.7	-	-29.7	-
Long-term net asset value (EPRA NRV)	2,712.9	30.7	2,500.8	42.4	2,430.1	41.2

1) EPRA NRV per share is calculated on the actual number of outstanding shares.

Interest-coverage ratio

	Jan-Mar		Full year
SEK million	2024	2023	2023
Income from property management	21.3	17.7	90.5
Add back
Interest net	23.1	18.7	75.9
Currency effects	4.8	2.7	2.2
Interest coverage, multiple	2.1	2.1	2.2
Interest coverage, multiple rolling 12 month	2.2	2.5	2.2

Net loan-to-value ratio

SEK million	2024-03-31	2023-03-31	2023-12-31
Interest-bearing liabilities	2,119.8	1,956.1	2,036.3
Cash and cash equivalents	-181.3	-190.2	-119.4
Net interest-bearing liabilities	1,938.5	1,765.9	1,916.9
Investment properties	4,688.7	4,336.3	4,412.7
Net loan-to-value ratio, %	41.3%	40.7%	43.4%

Surplus ratio

	Jan-Mar		Full year
SEK million	2024	2023	2023
Income from property management	21.3	17.7	90.5
Add back
Property expenses	36.7	32.9	119.2
Net operating income	58.0	50.6	209.7
Rent revenue	66.3	61.1	247.2
Surplus ratio, %	87.5%	82.8%	84.8%

Return on equity

	Jan-Mar		Full year
SEK million	2024	2023	2023
Net income for the period attributable to the Parent Company's shareholders	-9.2	-93.6	-200.6
Equity attributable to the Parent Company's shareholders	2,591.7	2,411.2	2,302.3
Return on equity, %	-0.4%	-3.9%	-8.7%

Multi-year overview, key figures

Mkr	2024-03-31	2023-03-31	2023-12-31	2022-12-31	2021-12-31	2020-12-31
Rent revenue	66,3	61,1	247,2	217,9	187,8	151,5
Net operating income	58,0	50,6	209,7	181,3	155,8	115,0
Income from property management	21,3	17,7	90,5	74,2	86,2	16,0
Income from property management excl. currency effects	26,2	20,4	92,7	90,5	86,2	45,0
Income from property management excl. currency effects per share, SEK1	0,35	0,30	1,35	1,32	1,25	0,65
Net income for the period	-9,2	-93,6	-200,6	207,3	209,7	71,8
Net income for the period per share, SEK1	-0,12	-1,36	-2,92	3,01	3,05	1,04
Economic occupancy rate, %	92,5	95,9	94,9	95,8	94,0	90,1
Surplus ratio, %	87,5	82,8	84,8	83,2	83,0	75,9
Return on equity, %	-0,4	-3,9	-8,7	8,3	26,5	16,3
EPRA NRV per share, SEK2	30,7	42,4	41,2	44,1	40,9	36,3
Net loan-to-value ratio, %	41,3	40,7	43,4	38,3	35,0	33,1
Equity/assets ratio, %	52,2	51,7	49,9	53,4	53,9	54,4
Interest-coverage ratio, multiple RTM	2,2	2,5	2,2	2,7	3,0	2,0

1) The average number of shares and key figures based on this have been restated by an adjustment factor of 1.1659 for all comparative years, corresponding to the

bonus issue element in this year's rights issue; for more information, refer to Note 7.

2) EPRA NRV per share is calculated on the actual number of outstanding shares.

Glossary and definitions

Return on equity	Profit for RTM in relation to the average equity during the interim period. Purpose: The key figure shows the return generated on the capital attributable to the shareholders.
Gross rent	Gross rent is defined as rent revenue at a yearly basis excluding supplements and discounts.
Yield	Net operating income for RTM in relation to the properties' carrying amount, adjusted for the properties' holding period for the period. The key figure shows the return from operational activities in relation to the value of the properties. Purpose: The key figure shows the return from operational activities in relation to the value of the properties.
Net operating income	Net operating income includes the revenue and expenses that are directly linked to the property, that is to say, rent revenue and the expenses required for running the property, such as operating costs and maintenance costs. Purpose: The metric is used to provide comparability with other property companies and also to show the performance of the business.
Economic occupancy rate1)	Rent revenue in relation to rental value at the end of the period. Purpose: The key figure facilitates the assessment of estimated rent for vacant spaces in relation to the total value of the rented and unrented floor space.
Property	Property held with property rights or leasehold rights.
Fair value of properties	Property value recognised according to balance sheet at the end of the period. Purpose: The key figure provides greater understanding of the value growth in the property portfolio and the Company's balance sheet.
Income from property management	Income from property management is comprised of net operating income plus property management and administrative expenses and financial income and expenses. The earnings measure does not include the effects of changes in value of the investment properties and derivatives.
Income from property management excl. currency effects	Income from property management is comprised of net operating income excluding currency effects, plus property management and administrative expenses and financial income and expenses. The earnings measure does not include the effects of changes in value of the investment properties and derivatives.
Rent revenue	Rent revenue less vacancies, rent discount and lost rent.
Rental value1)	Rent revenue with deductions for rent discount, plus rent surcharges and property tax for the rented space, as well as an estimate of market rent for vacant space. Purpose: The key figure enables an assessment of the total potential rent revenue as surcharges are added to the charged rent revenues with an estimated market rent for vacant spaces.
Items affecting comparability	Annehem Fastigheter regards items of a non-recurring nature as items affecting comparability.
Long-term net asset value (EPRA NRV)	Equity per numbers share with the reversal of fixed-interest derivatives and deferred tax according to balance sheet. Purpose: Long-term net asset value is a metric that reflects the long-term value of a property portfolio, instead of equity.
Net loan-to-value ratio	Interest-bearing liabilities, including lease liabilities, less cash and cash equivalents as a percentage of the carrying amount of the properties. Purpose: Net loan-to-value ratio is a measure of risk that indicates the degree to which the operations are encumbered with interest-bearing liabilities.
Net letting1)	New letting taken out during the period less terminations with notice of vacancy.
Interest-bearing liabilities	Interest-bearing liabilities mean all liabilities on which Annehem pays interest. These items in the balance sheet are: non-current and current liabilities to related parties, non-current and current interest-bearing liabilities (including lease liabilities) and Group account.
Interest-coverage ratio	Income from property management, including reversal of financial income, expenses and currency effects related to financial items and depreciation/amortisation as a percentage of financial income and expenses. The interest coverage ratio is a financial target that shows how many times the company can pay its interest charges with its profit from operational activities. 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.
Net interest income Debt/equity ratio	The net of interest expenses on interest-bearing liabilities and interest income on fixed-interest derivatives. Interest-bearing liabilities in relation to equity. Purpose: The debt/equity ratio is a measure of financial risk that shows the Company's capital structure and sensitivity to interest rate changes.
Equity/assets ratio	Equity in relation to total assets. Purpose: Shows how large a share of the Company's assets are financed with equity and has been included to enable investors to assess the Company's capital structure.
Lettable area	The total floor area that can be rented out. Purpose: Reflects the total area the Company can rent out.
Underlying property value	Agreed transaction price for the property.
Vacancy rent	Estimated market rent for vacant spaces. Purpose: The key figure specifies the potential rent revenue for fully leased spaces.
Currency effects	Currency effects attributable to currency futures and the translation of internal loans in EUR and NOK.

Purpose: The surplus ratio shows the percentage of each Swedish krona earned that the company can keep. The

Surplus ratio Net operating income for the period as a percentage of rent revenue.

1) The key figure is property-related and not considered to be an alternative performance measure in accordance with ESMA's guidelines.

key figure is a measure of efficiency that is comparable over time.

Q1

Contact persons

MONICA FALLENIUS, CEO Telephone: +46 (0)70-209 01 14

E-mail: monica.fallenius@annehem.se

ADELA COLAKOVIC, CFO Telephone: +46 (0)73-251 47 09

E-mail: adela.colakovic@annehem.se

Annehem Fastigheter Interim report January–March 2024 31 | 31

Annehem Fastigheter AB Corp. ID. No. 559220-9083

Address: Drottning Kristinas Esplanad 12 SE-170 67 Solna info@annehem.se