Wihlborgs Fastigheter

Quarterly Report • Jul 11, 2022

Wihlborgs' Interim report 2022

January–June

ALL TIME HIGH IN NEW LEASES

Rental income increased by 8 percent to SEK 1,599 million (1,477)

Operating surplus increased by 9 percent to SEK 1,135 million (1,046)

Income from property management increased by 11 percent to SEK 950 million (859)

Profit for the period amounted to SEK 1,549 million (1,007), corresponding to earnings per share of SEK 5.04 (3.28)

EPRA NRV per share increased by 4.9 percent to SEK 87.60 (86.33) adjusted for dividend of 3,00 sek per share

This is Wihlborgs

Wihlborgs is the leading property company in the Öresund region. Over 50,000 people have their workplace at one of our premises. People in Malmö, Lund, Helsingborg and Copenhagen all meet in city spaces designed by us, and our presence can also be felt in board rooms, club rooms and social forums as the Öresund region grows amid a wave of urban diversity and sustainability. We are a region-builder and a relations-builder.

The book value of the company's properties totals SEK 52 billion, representing an annual rental value of SEK 3.5 billion. Wihlborgs' shares are listed on the Large Cap List of Nasdaq Stockholm.

Our business concept

Wihlborgs specialises in efficient sub-markets in the Öresund region, where we own, manage in-house and develop commercial properties, thereby enabling tenants to grow and develop.

Our business model

We work continuously to improve our property portfolio by refining and developing existing properties, completing new projects and acquiring and selling properties. Strong financial results enable value growth and dividends to our shareholders.

Our sustainability

Wihlborgs is to ensure the company's and region's long-term sustainable development. Our focus is on responsible business, commitment to the region and its community, being an attractive employer and sustainable properties.

January – June 2022

Group key figures, SEK m	2022	2021
	Jan–Jun	Jan–Jun
Rental income	1,599	1,477
Operating surplus	1,135	1,046
Income property management	950	859
Changes in value of properties	372	284
Changes in value of derivatives	632	113
Result for the period	1,549	1,007
Earnings per share, SEK	5.04	3.28
Surplus ratio, %	71	71
Equity/assets ratio, %	42.1	40.5
Occupancy rate, %*	92	91
EPRA NRV per share, SEK	87.60	77.24

*) Excluding Projects & Land.

Financial targets

Target	Outcome Q2 2022
A return on equity that exceeds the risk-free interest rate by not less than six percentage points, which for the beginning of 2022 corresponds to 6.12 percent	13.9
An equity/assets ratio of no less than 30 percent	42.1
An interest coverage ratio of no less than 2.0	7.2
The loan-to-value ratio is not to exceed 60 percent	48.0

Content

CEO's comments04
Market comments 05
Income, expenses and profit06
Assets 08
Sustainable business 11
Liabilities and equity 12

Financial reports15
Key figures20
Definitions 22
Calendar23
Contact23

CEO's comments

High activity and increasing rent levels

In a turbulent operating environment, Wihlborgs' business model continues to deliver. The robust net lettings during the most recent quarters continued, with SEK 41m during the second quarter, and with a record-high level of SEK 109 million in new leases. The level of activity among our tenants is high and where there is activity, there are business opportunities.

Our new leases are also at higher rent levels than previously. This is true both if you look at the average rent for new leases compared with terminated leases, and if you look more closely when we measure the trends for lrental value and rental income in comparable portfolios, where rental value increased 6.3 percent and rental income rose 7.5 percent year-on-year. Among major new leases the one with Nederman can be highlighted, where we will build a new 25,000 m² facility at Rausgård 21 in Helsingborg with a 20-year lease. But once again, it is a large number of transactions across a broad base of different segments that work together to provide a stronger whole.

In Lund we have seen a breakthrough, with more leases for larger spaces. The recent city and innovation trade fair H22 in Helsingborg was an important reminder of the city's development potential. Video games are just one industry that continues to grow in Malmö. Our new tenant IO Interactive is part of this exciting development. In Copenhagen, too, we are seeing increased pressure in our rental business.

In the second quarter, our rental income grew 9 percent to SEK 804 million year-on-year. A variety of factors contributed

to this increase. For one, we have had positive net lettings for a long time, meaning that vacancies are gradually decreasing. Our operating surplus rose 8 percent to SEK 578 million in the quarter, corresponding to a surplus ratio of 72 percent. Meanwhile, our Danish operations have noted significant increases in energy costs and higher costs for our canteens. Even if occupancy is increasing at our Danish properties, we are not yet in balance with income. We are still focused on the issue and will follow developments carefully to balance costs against appeal and demand for high levels of service. Income from property management for the quarter amounted to SEK 483 million, an increase of 9 percent. Increased interest rates have only had a limited impact on net financial items thus far and the average interest rate was 1.35 percent.

Strong balance sheet

Changes in value during the quarter amounted to SEK 151 million. Valuations in the middle of the year are generally made internally, though some twenty properties were valued externally in connection with financing discussions. Inputting correct assumptions into a valuation model is undeniably more difficult than normal in today's world. Compared with the previous quarter, inflation assumptions have been raised, as have those for yield requirements. The net effect of these adjustments is, essentially, zero. It is primarily our lettings and other assumptions about future cash flows that underlie the positive changes in value.

"The level of activity among our tenants is high and where there is activity, there are business opportunities. "

Against a backdrop of positive earnings, the balance sheet is also strong. Our equity/assets ratio amounted to 42.1 percent and loan-to-value ratio to 48.0 percent. When uncertainty in the interest rate market grows, we continue to focus on liquidity. Six months into the year, Wihlborgs has unutilised credit facilities of SEK 2.8 billion. Our bond market exposure is limited, in that only 13 percent of our borrowing is raised there. The bonds that will mature during the second half of the year can be repaid with existing credit facilities. The rising market interest rates have thus far only had a marginal impact on our average interest rate. Over time, we will also be affected by a higher interest rate, but our interest coverage ratio is a multiple of 7.2, which demonstrates our considerable capacity to generate a strong cash flow.

Excellent development opportunities

With a strong balance sheet and healthy liquidity, we can continue to drive projects and evaluate potential acquisitions. During the quarter, we acquired the Österport 7 property in Malmö, encompassing 11,000 m², a short walk from the central station. We also signed an agreement to acquire Lersö Parkallé 107 in Copenhagen and the Pilbågen 6 and Snårskogen 1 properties in northeast Helsingborg. These acquisitions are excellent supplements to our existing portfolio and we look forward to developing them.

Despite increases in material prices and challenges in various supply chains, work in our projects is continuing largely according to plan, thanks in large part to our wellestablished partnerships with contractors in our region. We are seeing several signals of a more balanced price level by the autumn, and a tendency towards improvement in access to materials and resources.

Trends are also moving in the right direction in our sustainability work. Seven more properties were environmentally-certified during the quarter, which is important work to clarify our environmental performance. Our new thresholds for maximum CO2 impact in new-build projects and our internal price for CO2 in our redevelopment projects were introduced and will be part of the basic assessments in our investment calculations going forward. We have a long way to go, like the rest of the industry, but this is a step in right direction that forces us, our suppliers and our customers to consider more choices and their consequences. This is how we can really make a difference.

In our turbulent operating environment, we are continuing to focus on our core business. By helping our tenants the best we can and helping develop the Öresund region, we develop ourselves and our business. A symbiosis that has long lasted for 100 years and that once again proves sustainable over time.

Ulrika Hallengren, CEO

Market comments

The earlier hunt for inflation has, in a short time, become a struggle to fight it. Inflation, measured as CPIF, increased 7.2% in May 2022 compared with the year-earlier period. This was the highest inflation rate since the early 1990s, leading the Riksbank (the Swedish Central Bank) to raise the repo rate from 0.25 to 0.75% at the most recent monetary policy meeting.

The Swedish Economy Report from the Swedish National Institute of Economic Research predicts that Sweden is now heading toward an economic downturn and that the Riksbank is caught in a delicate balancing act, where it has to tighten monetary policy without exacerbating the downturn. Household pessimism is at levels unseen since the financial crisis, with concerns for falling asset prices and climbing interest rates. The business community, on the other hand, remains optimistic, with filled order books, high profit margins and a need to expand their personnel.

Skåne exited the first year of the pandemic significantly better than other major metropolitan areas. In the "Skånsk konjunktur" ("Business in Skåne") report, Skåne also performed well in the second year, with sales growth of 8.9% in the local economy, stronger than Stockholm but somewhat weaker than Västra Götaland. Several officeintensive industries performed very well in 2021, such as IT and Corporate Services, which increased 16.5% and 11.5% respectively compared with the previous year. Unemployment in Skåne continued to decline to under nine percent, but unfortunately long-term unemployment remains high, and every other unemployed person in Skåne has been without a job for over a year. The report also notes that the number of employed people in Skåne increased by approximately 22,000 people in the last year and a half, just over 90% of this increase was in Wihlborgs' sub-markets in Malmö, Lund and Helsingborg.

In SEPREF's (the Swedish Property Research Forum) consensus forecast for the second quarter of 2022, peak rent in Mlamö remains unchanged at SEK 3,000/m² and many are expecting higher rents than in the previous quarter. While yield requirements have declined from 4.13% to 4%, general expectations are for these to increase within a year.

The transaction volume in Sweden during the first five months of 2022 was SEK 95 billion, or a 17% increase compared with the year-earlier period. Sales in June 2021 were very high, just over SEK 60 billion, which will be difficult to beat in 2022 without large transactions. In Denmark, Newsec reports that rent levels in Copenhagen's outer areas are stable and that vacancy rates are falling. The total transaction volume in Denmark did not quite reach 2021 levels but has remained above average over the last five years. The number of office transactions was low and a large portion of turnover pertained to housing.

Comparative figures for income statement items relate to values for the corresponding period 2021 and balance sheet items as of 2021-12-31.

Income, expenses and profits, January– June 2022

Rental income

Rental income amounted to SEK 1,599 million (1,477) corresponding to an increase by 8 percent. Of the rental income, service income accounted for SEK 169 million (139). Revenues have been affected positively by index increases of SEK 27 million and property acquisitions/divestments of SEK 18 million (-45) net. In addition, reduced vacancies had a positive effect of SEK 23 million (-39). Exchange rate effects during the period amounted to SEK 11 million (-15). Service income from canteens in the Danish operations increased by SEK 10 million, mainly due to increased tenant presence in the properties after the pandemic. Other changes in revenues of 2 percent have been affected by completed projects, renegotiations and new leases.

At the end of the period the occupancy rate for investment properties, excluding Projects & Land, is 92 percent (92).

During the period new leases were signed to a value of SEK 163 million (142) on an annualized basis. Lease terminations totalled SEK 94 million (97). This represents a net letting of SEK 69 million (45).

Terms of Wihlborgs' contracts per 31 June 2022 Löptider för Wihlborgs hyreskontrakt per 31 december 2021

Cancellable rental value, SEK m

Ten largest tenants per 31 June 2022

20 %

Rental income from ten largest tenants

Rental income from governmental tenants

• Danish Building and Property Agency
• Danske Bank
• Ericsson AB
• City of Helsingborg
• Lunds University
• City of Malmö
• Malmö University
• Skåne Regional Council
• SAAB
• Swedish Tax Agency

Terminations

Net letting, quarterly

Property expenses

Total property expenses amounted to 464 million (431). Reduced reserves for rental receivables have entailed positive bad debt losses during the period of SEK 1 million (-1). The increase in property costs is mainly attributable to the Danish portfolio, where a large part is due to an increase in energy costs and the reopening of the canteen operations. In addition, the previous year's acquisition of three properties has led to increased costs. The historical summary at the bottom of page 17 illustrates how costs vary over the different quarters of the year.

Operating surplus

The operating surplus amounted to 1,135 million (1,046) representing a surplus ratio of 71 percent (71). Of the change, SEK 13 million (-32) was attributable to property acquisitions and divestments, in addition, currency effects have affected by SEK 7 million (-10).

Central administration

The costs for central administration were SEK 44 million (40).

Financial income and expense

Net interest totalled SEK -145 million (-148), of which interest income accounted for 6 million (6). The interest expense for the period, incl. realized effects from interest rate derivatives, was 151 million (154). The leasehold amounted to 2 million (2). Interest expense relating to interest rate derivatives amounted to SEK 25 million (30). At the end of the period, the average interest rate, including the cost of credit agreements, was 1.35 percent, compared with 1.32 percent at year-end.

Income from property management

Profit participation in joint ventures amounted to SEK 6 million (3). Income from property management amounted to SEK 950 million (859).

Pre-tax profit

The pre-tax profit, i.e. after value changes on properties and derivatives, was SEK 1,954 million (1,256). During the period, value changes on properties amounted to SEK 372 million (284). Increased market interest rates have entailed positive value changes on derivatives amounting to SEK 632 million (113) of which SEK 638 million (119) are attributable to interest rate derivates and -6 million (-6) to other financial items.

Profit after taxes

The profit after taxes was SEK 1,549 million (1,007). Total tax amounted to SEK 405 million (249), of which current tax SEK 22 million (22) and deferred tax SEK 383 million (227).

Increased focus on climate impact for project investments and favouring sustainable choices in supplier chains. This is what Wihlborgs wants to accomplish through introducing internal pricing on CO2 emissions and a threshold for new-build projects. The introduction will be tested in select projects in 2022 and then evaluated. Arvid Liepe, CFO, and Staffan Fredlund, Environmental Sustainability and Climate Change Manager, have worked together to develop the model.

Assets

Property portfolio as of 30 June 2022

The summaries below are based on Wihlborgs' property portfolio as of 30 June 2022. Rental income relates to contracted rental income on an annual basis as of 1 July 2022.

The operating surplus is based on the properties' earning capacity on an annual basis based on rental income for July 2022, operating and maintenance costs, property administration on a rolling twelve-month basis and property tax.

Wihlborgs' property portfolio consists of commercial properties in the Öresund region, located in Malmö, Helsingborg, Lund and Copenhagen. The property portfolio 30 June 2022 consisted of 300 properties (299) with a lettable area of 2,149,000 m2 (2,143,000). 7 of the properties (7) are leasehold rights.

The properties' carrying amount was SEK 51,760 million (50,033), which corresponds to the estimated market value. The total rental value was SEK 3,537 million (3,472) and the contracted rental income on annual basis SEK 3,239 million (3,128). The like-for-like increase in rental value was 6.3 percent while contracted rental income increased by 7.5 percent compared to 12 months previously.

The economic occupancy rate for Office/Retail properties was 92 percent (92) and for Logistics/Production properties 92 percent (93). The rental value for Office/Retail properties represented 83 percent and Logistics/Production properties 16 percent of the total rental value.

The operating surplus from investment properties, excluding property administration and Projects/Land, is SEK 2,493 million (2,401) which with a carrying amount of SEK 48,970 million (47,194) corresponds to a yield of 5.1 percent (5.1). Broken down by property category, this is 4.9 percent (4.9) for Office/Retail and 6.2 percent (6.3) for Logistics/ Production.

Rental value per area, %

Hyresvärde

Redovisat värde per område

Rental value per property category, %

Hyresvärde

Redovisat värde per fastighetskategori

At the Rausgård 21 property in southern Helsingborg, Wihlborgs will construct a new manufacturing and logistics facility of 25,000 square metres for the environmental technology company Nederman. The lease extends for 20 years and the facility is expected to commence operations in March 2024. Construction also includes modernising a minimally exploited property and giving the entire area a push in the right direction.

Changes in values of properties

By year-end the valuation of all Wihlborgs' properties is carried out by external valuers. In the valuation of the properties as of June 30, 2022 about 20 properties have been valued externallys and the rest internally. The valuation has meant that the property value has increased by SEK 372 million (284). Inflation assumptions affecting revenues in 2023 and 2024 have been raised at the same time as the yield requirements in valuations have been increased. The net effect of these two changes is close to zero. The remaining part comes from new leases, renegotiations and project development.

Fair value has been determined using a combination of a yield-based method and a location-price method, in which transactions completed in the sub-markets concerned are analysed in order to calibrate the parameters for the yieldbased method. The value is considered to correspond to the yield value that is calculated from normally five-year cash flow analyses. The value of newbuild projects in progress is determined as the value as if the project were complete, less deduction of the remaining cost. Undeveloped land and other upgrade projects are valued according to the location-price method. The method for valuation is the same as previously. There is a comprehensive description of the method for valuation of properties on pages 82-83 and 106-107 in the Company's 2021 Annual Report.

As of 30 June 2022 the carrying amount for the properties is SEK 51,760 million (50,033).

Changes in carrying amount of properties
Changes	Group total, SEK m
Carrying amount 1 January 2022	50,033
Acquisitions	377
Investments	568
Properties sold	-1
Change in value	372
Currency translations	411
Carrying amount 30 June 2022	51,760

Projects/Land 6% Logistics/Production 13 % 81% Ofce/Retail Redovisat värde per fastighetskategori 23 % Helsingborg Malmö 42 % Copenhagen 19 % 17 % Lund Redovisat värde per område Net value per property category, % Net value per area, %

26 % Helsingborg

Malmö 36%

Projects/Land 1% Copenhagen 22%

Hyresvärde per område

17 % Lund

83 % Ofce/Retail

Logistics/Production 16 %

Hyresvärde per fastighetskategori

Investments and current projects

Investments in the property portfolio totalled SEK 568 million (453). Approved investments in ongoing projects amount to SEK 3,446 million, of which 870 million had been invested at the end of period.

Liquid assets

The Groups liquid assets totalled SEK 886 million (695) including unutilized overdraft facilities.

At the end of the period unutilized credit facilities amounted to SEK 2,832 million (2,520).

Investments in progress >SEK 50 million, 30 June 2022 Property Category of use Municipality Completion date Lettable area, m2 Occupancy rate, % Estimated investment, SEK m Expended 2022-06-30, SEK m Hindbygården 7 Office/Retail Malmö Q3 2022 1,800 100 59 47 Raffinaderiet 3 Office/Retail Lund Q1 2023 5,800 60 170 101 Snårskogen 5 Logistics/Production Helsingborg Q1 2023 2,200 100 60 11 Huggjärnet 13 Logistics/Production Helsingborg Q2 2023 8,000 65 108 17 Literbuen 16-18 Office/Retail Copenhagen Q2 2023 8,000 0 79 1 Pulpeten 5 Office/Retail Malmö Q2 2023 16,000 85 804 312 Kunskapen 1 Office/Retail Lund Q3 2023 6,000 50 244 54 Rausgård 21 Logistics/Production Helsingborg Q1 2024 25,000 100 420 5 Posthornet 1 Office/Retail Lund Q4 2024 9,900 0 448 9 Bläckhornet 1 Office/Retail Malmö Q1 2025 16,600 0 884 21 Total 99,300 3,276 578

Analysis of lettable space per area and category of use

Total	467,229 1,235,735	8,334 131,296	124,767 612,819	12,515 92,993	38,3314 76,483	651,175 2,149,326	30 100
Copenhagen
Lund	197,430	14,656	35,709	4,429	9,2223	261,446	12
Helsingborg	219,563	65,161	285,596	40,789	12,9712	624,080	29
Malmö	351,514	43,145	166,748	35,260	15,9591	612,625	29
	m2	m2	Production, m2	Health care, m2	m2	m2	%
Area	Office,	Retail,	Logistics/	Education/	Misc.,	Total,	Share,

1) Includes 10,275 m2 hotel. 2) Includes 1,819 m2 residential 3) Includes 8,215 m2 hotel 4) Includes 5,600 m2 hotel

Analysis per property category in each management area
Area/ property category	Number of properties	Area, m2 thousand	Carrying amount, SEK m	Rental value, SEK m	Rental value, SEK/m2	Economic occupancy rate, %	Rental income, SEK m	Operating surplus incl. property admin., SEK m	Surplus ratio, %	Operating surplus excl. property ad min., SEK m	Yield excl. property admin., %
Malmö
Office/Retail	50	443	17,975	1,088	2,455	94	1,019	790	78	827	4.6
Logistics/Production	30	141	2,042	152	1,080	94	143	114	79	122	6.0
Projects & Land	21	29	1,577	23	796	-	7	-4	-	-2	-
Total Malmö	101	613	21,594	1,263	2,061	93	1,169	899	77	947	4.4
Helsingborg
Office/Retail	37	271	8,306	564	2,084	90	506	386	76	403	4.9
Logistics/Production	57	353	3,455	321	911	91	293	208	71	224	6.5
Projects & Land	12	1	158	1	1,514	-	1	0	-	0	-
Total Helsingborg	106	624	11,919	887	1,421	90	800	594	74	628	5.3
Lund
Office/Retail	25	231	7,827	577	2,493	92	530	381	72	421	5.4
Logistics/Production	4	23	282	20	895	95	19	15	75	16	5.7
Projects & Land	4	7	563	15	1,992	-	3	-2	-	-1	-
Total Lund	33	261	8,671	612	2,340	90	552	393	71	436	5.0
Copenhagen
Office/Retail	47	520	7,902	710	1,367	93	661	404	61	435	5.5
Logistics/Production	9	61	783	61	1,006	94	58	43	75	45	5.7
Projects & Land	4	70	890	4	-	-	1	-18	-	-17	-
Total Copenhagen	60	651	9,576	776	1,192	93	719	429	60	463	4.8
Total Wihlborgs	300	2,149	51,760	3,537	1,646	92	3,239	2,316	71	2,474	4.8
Total excluding projects and land	259	2,042	48,970	3,495	1,711	92	3,228	2,340	72	2,493	5.1

Rental growth

Entire property stock				Like-for-like*
	01-07-2022	01-07-2021	Percent		01-07-2022	01-07-2021	Percent
	SEK m	SEK m			SEK m	SEK m
Rental value	3,537	3,287	+ 7.6	Rental value	3,342	3,145	+ 6.3
Rental income	3,239	2,968	+ 9.1	Rental income	3,087	2,872	+ 7.5
				*Exklusive projekt & land

Property transactions

At the beginning of June, the office property Österport 7 in Malmö was aquired. In addition to this land was aquired in Helsingborg through the acqusition of Flintyxan 6. At the end of June, an agreement was also signed to acquire the property of Lersö Parkallé 107 in eastern Copenhagen, which comprises 3,600 sqm of leasable area, with access from 1 July 2022.

Property transactions January–June 2022
Quarter	Property	Municipality	Management area	Category	Area, m2	Price, SEK m	Operating surplus 2022, SEK m1
Acquisitions
Q2	Österport 7	Malmö	Malmö City	Office	11,000
Q2	Flintyxan 6	Helsingborg	Helsingborg Yttre	Land	-
	Total acquisitions 2022				11,000	377	2
Sales
Q1	Barrikaden 3	Helsingborg	Helsingborg Yttre	Project/Land	-	-	-
Total sales 2022					0	1	0

1) Operating surplus from properties acquired and sold that are included in the results for the period.

Sustainable Business

Prioritised sustainability topics

Wihlborgs' sustainability agenda focuses on the areas where our operations have the greatest impact and can make the greatest difference. The goals for the Group to achieve in 2022 are established and monitored quarterly, with particular regard to environmental certifications, energy consumption and climate impact.

Environmental certifications

One prioritised area that engages large portions of the management organisation is investing in the certification of existing office properties in Sweden according to Miljöbyggnad In-Use. Seven additional properties were certified in the second quarter and one environmentally certified property (Österport 7) has been acquired. While the pace continues to be high, the target of certifying 80 percent of Wihlborgs' Swedish office premises will probably not be reached until 2023.

Energy and climate

Wihlborgs works continuously to reduce energy consumption at its properties by replacing older cooling equipment, upgrading ventilation equipment and installing heat recovery solutions among other initiatives. These actions also help to reduce the properties' climate impact from operation.

The goal for 2022 is for direct (Scopes 1 and 2) CO2 emissions to not exceed 1.5 kg/m2 , which was achieved in the last two years. Moreover, in the longer term – by 2030 – the aim is to halve climate-impacting emissions across the entire value chain (Scope 3) compared with the base year 2020.

Overall energy consumption during the first six months of 2022 was lower year-on-year primarily due to a reduced need for property heating in the winter. Lower use of heating together with a higher share of biogas in the Danish district heating network also resulted in lower direct climate-impacting emissions from operations.

Key figures - sustainable properties
	Measure	Target	2022	2021	2022	2021	2021
		(as of Dec	Apr-Jun	Apr-Jun	Jan-Jun	Jan-Jun	Jan–Dec
		2022)	3 months	3 months	6 months	6 months	12 months
Environmental certifications	% of floor area (office, Sweden)	> 80	44	30	44	30	36
CO2 emissions (scope 1 & 2)	kg CO2 e/m2	< 1.5	0.19	0.24	0.60	0.76	1.40
Energy use	kWh/m2	< 95	17.5	19.7	52.8	58.7	102.2

Climate impact from construction projects

It is clear that the climate impact arising from new construction, redevelopment and tenant improvements is substantially larger than the climate impact of property emissions from operations. Wihlborgs is currently intensifying its focus on the climate impact of construction projects.

A new emissions threshold has been set of 270 kg CO2 per m2 during the construction phase of new office properties. The threshold has been established jointly in LFM30 in Malmö and is at the forefront in relation to the guidelines of the Swedish National Housing Board and legislation. By way of comparison, current emissions average around 350 kg CO2 per m2 for Wihlborgs' new-build projects.

In addition, Wihlborgs has launched an internal price for CO2 emissions to, thereby, better integrate the climate impact cost into the decision-making process. The price has been set at SEK 1,000 per tonne for CO2 and will initially be tested in a number of redevelopment project investment decisions before being evaluated. The objective is to clarify Wihlborgs' ambitions for contractors and to encourage them to as far as possible choose climate-friendly alternatives, which also impacts the climate cost in the tenders.

All newly built Wihlborgs properties are certified in line with Miljöbyggnad and additional certification pursuant to Zero CO2 is also increasingly sought. Kvartetten (Pulpeten 5) in Hyllie received a preliminary Zero CO2 certification in the second quarter. This confirms that the building has a net zero climate impact during its entire life cycle.

Sustainability reporting at Wihlborgs

Wihlborgs compiles an annual sustainability report prepared according to the Annual Accounts Act, GRI Standards, EPRA Sustainability Best Practice Recommendations (sBPR) and TCFD guidelines for reporting climate-related risks. We follow up on prioritised sustainability topics and goals in each interim report. We also provide information about current activities and events during the quarter that have a bearing on our sustainability agenda. More information about our sustainability agenda is available on Wihlborgs' website. Read more at www.wihlborgs.se/en/about-us/sustainability/

Liabilities and equity

As of 30 June 2022 equity totalled SEK 22,607 million (21,948) after SEK 922 million was paid as a dividend during the second quarter. The equity/assets ratio stood at 42.1 percent (42.9).

Interest-bearing liabilities

The group's interest-bearing liabilities as of 30 June amounted to SEK 24,853 million (23,278) with an average interest rate including costs for credit agreements of 1.35 percent (1.32).

With consideration to the company's net debt of SEK 24.9 billion, the loan-to-value ratio is 48.0 percent (46.5) as a percentage of property values.

The loans' average fixed interest period including effects of derivatives on 30 June 2022 amounted to 2.5 years (2.9). The average loan maturity, including commited credit facilities, amounted to 6.2 years (6.0).

Structure of interest and loan maturities as of 30 June 2022
	Interest maturity		Loan maturity
Matures, year	Loan amount, SEK m	Av. interest rate, %	Credit ag., SEK m	Utilised, SEK m
2022	12,678	1.33	846	846
2023	3,124	0.96	986	986
2024	1,788	1.14	11,318	9,404
2025	1,788	1.14	4,775	4,775
2026	1,252	1.35	573	573
>2026	4,223	1.59	9,188	8,269
Total	24,853	1.30*	27,686	24,853

*) Excluding costs for credit agreements.

Wihlborgs use interest rate derivatives in order to reduce the risk level in the loan portfolio. A summary of the terms is shown in the table below.

Interest rate derivatives portfolio 30 June 2022
Interest rate swaps
Maturity	Amount, SEK m	Interest, %
2022	1,065	0.11
2023	2,430	0.39
2024	1,788	0.41
2025	1,788	0.42
2026	1,252	0.59
>2026	2,504	0.70
Total	10,827	0.47

The fair value in Wihlborgs' interest rate derivative portfolio amounted to 669 million (31).

Interest-rate derivatives are recognised at fair value in accordance with IFRS 9. All derivatives are classified in level 2 in accordance with IRS 13. For information on the valuation approach for interest rate derivatives, see page 100 of the 2021 Annual Report.

Average net debt relative to rolling 12-month operating income amounted to 10.5 times (10.7).

Net debt/EBITDA

Tretorn, Campus, Galoschan and Kadorran – we give many names to the things we love. With seven storeys and 51,000 square metres, Tretornfabriken has characterised Helsingborg for years. Now the property has a new name and identity: Fabriken1891. Participants at the opening on 13 June included: Ulrika Hallengren, CEO of Wihlborgs; Annette Melander Berg, Business Director for the City of Helsingborg; and Göran Pelvén, CEO of Dunkersstiftelserna.

Miscellaneous

Employees

At the end of the period, the number of FTEs at Wihlborgs was 257 (250) of which 106 (104) were in property service. Of the total number of FTEs 79 (77) were in Malmö, 36 (34) in Helsingborg, 31 (31) in Lund and 111 (108) in Copenhagen. The average age of employees is 44 år and women make up 43 (42) percent.

Parent company

The parent company owns no properties, but deals with questions relating to the stock market and joint Group functions for administration, management and borrowing. The parent company's turnover is mostly related to the billing of services to Group companies.

The parent company has invested SEK 1 million (1) in shares in subsidiaries and other shares.

The parent company's income statement and balance sheet are found on page 18.

Participations in other companies

A description of all participations in joint ventures and holdings in joint operations held by Wihlborgs will be found on pages 108–109 in the Company's 2021 Annual Report.

Largest shareholders

The largest shareholder in Wihlborgs is Erik Paulsson with family and company, with 11.0 percent of the shares outstanding.

Shares held by owners registered abroad account for 37 percent. The number of shareholders is approximately 29,000.

Largest shareholders in Wihlborgs 30 June 2022

	Number of	Proportion of
	shares,	equity and
	thousands	votes, %
Erik Paulsson with family,	33,876	11.0
privately and via company
SEB Investment Management	17,906	5.8
Länsförsäkringar funds	16,977	5.5
Swedbank Robur funds	12,707	4.1
Handelsbanken funds	9,287	3.0
Bank of Norway	6,419	2.1
Qviberg family	4,920	1.6
AMF funds	4,564	1.5
Life insurance company Skandia	3,861	1.3
Tibia Konsult	2,949	1.0
Other shareholders reg. in Sweden	86,067	28.0
Other shareholders reg. abroad	107,894	35.1
Total outstanding shares	307,427	100.0

Development of share price

2021-01-01 – 2022-06-30

Significant risks and uncertainty factors

Wihlborgs' future development and ability to reach its operational goals are influenced by numerous risks and uncertainties. By systematically reviewing, analysing and managing these risks and uncertainties, it is possible to limit them and concurrently create the prerequisites for continued growth.

The risks assessed as having a significant influence on the Group's earnings trend and cash flow are the variations in rental income, property costs and interest-rates. The properties are measured at fair value with changes in value in the income statement resulting in positive and negative impacts on earnings during the year. Property valuation also impacts Wihlborgs' financial position and key metrics. The extent of changes in value is partly determined by Wihlborgs' own capacity, through alteration and upgrading of properties, as well as by leases and client structures, to increase the properties' market value, and partly by external factors that affect supply and demand in the property markets where the company is active. Property valuation should take in to account an interval of uncertainty, which in a functioning market, typically consists of +/-5–10% to reflect the inherent uncertainty of assumptions and estimates.

In addition to the above, risks also include financing risks. Wihlborgs is dependent on external loans to meet its undertakings and complete transactions. Risks are managed using Wihlborgs' financial policy, which stipulates objectives, guidelines and risk limits for Wihlborgs' financial activities.

On pages 84–89 and 101–102 in the Company's 2021 Annual Report there is a comprehensive description of the risks facing the Group, how these are handled and a grading with regard to the assessed impact on the business and the probability that the risk will occur.

Developments in the rest of the world as a result of the war in Ukraine have led to an increase in the probability of financing and interest rate risk materializing compared with the assessment at the turn of the year. There is also a risk that a lack of building materials can lead to increases in costs and delays in newly started and future projects.

Accounting policies

Wihlborgs follows the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB), as well as interpretations issued by the IFRS Interpretations Committee (IFRIC) as endorsed by the European Union. The Interim Report has been prepared in accordance with IAS 34 Interim Financial Reporting and the Swedish Annual Accounts Act. Information under IAS 34 p.16A is submitted in the notes and elsewhere in the interim report.

The Group applies the same accounting policies and valuation methods as in the most recent annual report. Wihlborgs assesses that none of the new or amended standards approved by the EU, or interpretations from the IFRS Interpretations Committee, that entered force after 1 January 2022, affect its results or financial position in any material sense. The Group applies the Swedish Financial Reporting Board's recommendation RFR 1, Supplementary Accounting Rules for Corporate Groups and the Parent Company applies RFR 2. The financial reports are found on page 15-19.

Events after the accounting period

On July 1, Wihlborgs will take possession of the Lersö Parkalle 107 property totaling 3,600 sqm in eastern Copenhagen. Wihlborgs has on the same day also acquired the properties Pilbågen 6 and Snårskogen 1 comprising a total of 25,000 sqm of leasable area in northern Helsingborg.

Malmö 11 July 2022 Wihlborgs Fastigheter AB (publ)

Anders Jarl	Lennart Mauritzson	Tina Andersson
Chairman	Deputy Chairman	Board member
Amela Hodzic	Jan Litborn	Anna Werntoft
Board member	Board member	Board member
Johan Röstin Board member	Ulrika Hallengren CEO

The Board of Directors and the CEO offer assurance that the interim report provides a fair summary of the parent company's and the Group's business activities, status and profits, and describes the significant risks and uncertainty factors faced by the parent company and the companies that are part of the Group.

This interim report has not been reviewed by the company's auditors.

Consolidated statement of income and comprehensive income in summary
SEK m	2022 Apr-Jun 3 months	2021 Apr-Jun 3 months	2022 Jan-Jun 6 months	2021 Jan-Jun 6 months	2021/2022 Jul-Jun 12 months	2021 Jan-Dec 12 months
Rental income	804	739	1,599	1,477	3,182	3,060
Operating costs	-115	-98	-245	-225	-462	-442
Repairs and maintenance	-23	-21	-47	-43	-105	-101
Property tax	-52	-49	-102	-98	-196	-192
Property administration	-36	-34	-70	-65	-135	-130
Total propery costs	-226	-202	-464	-431	-898	-865
Operating surplus	578	537	1,135	1,046	2,284	2,195
Central administration	-22	-19	-44	-40	-87	-83
Interest income	2	2	6	6	13	13
Interest expense	-78	-78	-151	-154	-309	-312
Leasehold rent	-1	-1	-2	-2	-4	-4
Share in results of joint ventures	4	2	6	3	9	6
Income from property management	483	443	950	859	1,906	1,815
Change in value of properties	151	210	372	284	2,241	2,153
Change in value of derivatives	292	16	632	113	721	202
Pre-tax profit	926	669	1,954	1,256	4,868	4,170
Current tax	-10	-11	-22	-22	-57	-57
Deferred tax	-183	-129	-383	-227	-921	-765
Profit for the period1	733	529	1,549	1,007	3,890	3,348
Other comprehensive income
Items that will be reclassified to profit or loss for the year:
Translation differences on recalculation of foreign
operations	139	-42	179	26	220	67
Hedging of currency risk in foreign operations	-136	40	-179	-27	-221	-69
Tax attributable to items that will be reclassified to profit or loss for the year	24	-7	32	5	40	13
Other comprehensive income for the period	27	-9	32	4	39	11
Total comprehensive income for the period1	760	520	1,581	1,011	3,929	3,359
Earnings per share2	2.38	1.72	5.04	3.28	12.65	10.89
No. of shares at end of the period, thousands3	307,427	307,427	307,427	307,427	307,427	307,427
Average no. of shares, thousands3	307,427	307,427	307,427	307,427	307,427	307,427

1) The entire profit/income is attributable to the parent company's shareholders.

2) Key ratios per share have been calculated based on a weighted average number of shares during the period. There are no outstanding subscription options, convertibles or

other potential ordinary shares and accordingly, no dilution effects to take into consideration.

3) Recalculation has been made for completed share split 2:1 in May 2022.

Consolidated statement of financial position in summary
SEK m	2022-06-30	2021-06-30	2021-12-31
ASSETS
Investment properties	51,760	47,056	50,033
Right-of-use assets	146	152	150
Other fixed assets	387	399	396
Derivatives	669	67	94
Current receivables	339	241	164
Liquid assets	443	496	315
Total assets	53,744	48,411	51,152
EQUITY AND LIABILITIES
Equity	22,607	19,600	21,948
Deferred tax liability	4,992	4,081	4,622
Borrowings	24,853	23,346	23,278
Lease liability	145	151	149
Derivatives	-	131	63
Other long-term liabilities	45	58	45
Current liabilities	1,102	1,044	1,047
Total equity & liabilities	53,744	48,411	51,152

Consolidated statement of changes in equity
SEK m	Jan-Jun 2022	Jan–Jun 2021	Jan-Dec 2021
Total equity at beginning of period	21,948	19,396	19,396
Equity attributable to parent company's shareholders
Opening amount	21,948	19,396	19,396
Dividend paid	-922	-807	-807
Profit for the period	1,549	1,007	3,348
Other comprehensive income	32	4	11
Total equity at end of period	22,607	19,600	21,948

Consolidated cash flow statement summary
SEK m	Apr-Jun 2022	Apr-Jun 2021	Jan-Jun 2022	Jan-Jun 2021	Jan-Dec 2021
Operating activities
Operating surplus	578	537	1,135	1,046	2,195
Central administration	-22	-19	-44	-40	-83
Non-cash items	5	4	8	10	16
Interest received	2	0	32	1	2
Interest paid	-78	-74	-158	-154	-312
Income tax paid	2	-1	-9	-9	-50
Change in operating receivables	-42	-41	-115	-89	0
Change in operating liabilities	-116	-37	-37	-83	-78
Cash flow from operating activities	329	369	812	682	1,690
Investment activities
Acquisitions of properties	-377	-17	-377	-182	-412
Investments in existing properties	-298	-245	-568	-453	-1,236
Sales of properties	-	-	1	-	3
Change in other non-current assets	1	-15	0	-16	-35
Cash flow from investment activities	-674	-277	-944	-651	-1,680
Financing activities
Dividend paid	-922	-807	-922	-807	-807
Change in borrowing	2,227	2,311	4,893	3,891	5,680
Loan repayments	-832	-1,486	-3,709	-2,820	-4,766
Change in other long-term liabilities	0	4	-2	-4	-7
Cash flow from financing activities	473	22	260	260	100
Cash flow for the period	128	114	128	291	110
Opening cash flow	315	382	315	205	205
Closing cash flow	443	496	443	496	315

Historical summary of last eight quarters

SEK m	Q2 2022	Q1 2022	Q4 2021	Q3 2021	Q2 2021	Q1 2021	Q4 2020	Q3 2020
Rental income	804	795	770	813	739	738	751	775
Operating costs	-115	-130	-118	-99	-98	-127	-121	-88
Repairs and maintenance	-23	-24	-34	-24	-21	-22	-30	-24
Property tax	-52	-50	-45	-49	-49	-49	-49	-54
Property administration	-36	-34	-36	-29	-34	-31	-28	-35
Operating surplus	578	557	537	612	537	509	523	574
Income from property management	483	467	443	513	443	416	419	477
Profit for the period	733	816	1,668	673	529	478	694	820
Surplus ratio, %	71.9	70.1	69.7	75.3	72.7	69.0	69.6	74.1
Investment yield, %	4.5	4.4	4.4	5.2	4.6	4.4	4.5	4.9
Equity/assets ratio, %	42.1	43.6	42.9	41.5	40.5	41.5	41.3	38.4
Return on equity, %	12.9	14.6	31.6	13.5	10.7	9.7	14.6	17.9
Earnings per share, SEK1	2.38	2.66	5.43	2.19	1.72	1.55	2.26	2.67
Income property management per share, SEK1	1.57	1.52	1.44	1.67	1.44	1.35	1.36	1.55
Cash flow fr operating activities per share, SEK1	1.07	1.57	1.82	1.46	1.20	1.02	1.55	1.54
EPRA NRV per share, SEK1	87.60	88.52	86.33	79.84	77.24	77.80	76.22	73.82
Share price as % of EPRA NRV	81.7	111.4	119.0	109.2	120.2	106.5	121.6	120.2
Carrying amount of properties	51,760	50,618	50,033	47,741	47,056	46,687	46,072	47,041
Equity	22,607	22,769	21,948	20,278	19,600	19,887	19,396	18,729
Total assets	53,744	52,168	51,152	48,832	48,411	47,964	46,961	48,762

Definitions of key ratios are available on page 23.

1) Recalculation has been made for completed share split 2:1 in May 2022.

Consolidated segment reporting January–June

Property management		Malmö		Helsingborg		Lund		Copenhagen		Total
SEK m	2022	2021	2022	2021	2022	2021	2022	2021	2022	2021
Rental income	582	540	396	362	280	259	341	316	1,599	1,477
Property costs	-136	-137	-101	-102	-81	-83	-145	-110	-464	-431
Operating surplus	446	403	295	260	199	176	196	206	1,135	1,046

In the Group's internal reporting, activities are divided into the above segments, which are the same as described in the latest annual report. For a more detailed description of segments, see the annual report for 2021 pages 45-67. The total operating surplus shown above corresponds with the operating surplus recorded in the income statement.

The difference between the operating surplus of SEK 1,135 million (1,046) and the pre-tax profit of SEK 1,954 million (1,256) consists of central administration SEK -44 million (-40), financial net SEK -147 million (-150), share in results SEK 6 million (3) and changes in value of properties and derivatives SEK 1,004 million (397).

Parent company's income statement summary
SEK m	Jan–Jun 2022	Jan-Jun 2021	Jan-Dec 2021
Income	107	115	223
Expenses	-107	-106	-206
Operating profits	0	9	17
Financial income	1,666	978	1,189
Financial expenses	-320	-172	-365
Pre-tax profit	1,346	815	841
Appropriations	-	-	216
Tax	-131	-61	-80
Profit for the period	1,215	754	977

Parent company's balance sheet summary
SEK m	2022-06-30	2021-06-30	2021-12-31
Participations in Group companies	9,431	9,430	9,431
Receivables fr Group companies	16,619	14,848	15,791
Derivatives	669	67	94
Other assets	293	344	316
Cash and bank balances	303	348	173
Total assets	27,315	25,037	25,805
Equity	7,038	6,523	6,745
Liabilities to credit institutions	18,242	15,671	16,403
Derivatives	-	131	63
Liabilities to Group companies	1,831	2,626	2,512
Other liabilities	204	86	82
Total equity and liabilities	27,315	25,037	25,805

Key figures for the group
SEK m	Jan-Jun	Jan-Jun	Jul-Jun	Jan-Dec
	2022	2021	2021/2022	2021
Financial
Return on equity, %	13.9	10.3	18.4	16.2
Return on total capital, %	6.3	6.1	9.8	9.8
Equity/assets ratio, %	42.1	40.5	42.1	42.9
Interest coverage ratio, multiple	7.2	6.5	7.1	6.7
Leverage properties, %	48.0	49.6	48.0	46.5
Debt/equity ratio, multiple	1.1	1.2	1.1	1.1
Share-related1
Earnings per share, SEK	5.04	3.28	12.65	10.89
Earnings per share before tax, SEK	6.36	4.09	15.83	13.56
EPRA EPS, SEK	2.77	2.56	5.69	5.33
Cash flow from operations per share, SEK	2.64	2.22	3.28	5.50
EPRA NDV (net disposal value) per share, SEK	73.54	63.75	73.54	71.39
EPRA NRV (net reinstatement value) per share, SEK	87.60	77.24	87.60	86.33
Market value per share, SEK	71.55	92.85	71.55	102.70
Proposed dividend per share, SEK	-	-	-	3.00
Dividend yield, %1	-	-	-	2.9
Total return from share, %	-	-	-	13.6
P/E-ratio I, multiple	7.1	14.2	5.7	9.4
P/E-ratio II, multiple	12.9	18.2	12.6	19.3
Number of shares at the end of period, thousands	307,427	307,427	307,427	307,427
Average number of shares, thousands	307,427	307,427	307,427	307,427
Property-related
Number of properties	300	296	300	299
Carrying amount of properties, SEK m	51,760	47,056	51,760	50,033
Estimated investment yield, % – all properties	4.5	4.5	4.5	4.8
Estimated direct return, % – excl project properties	4.8	4.7	4.8	5.1
Lettable area, m2	2,149,327	2,118,502	2,149,327	2,142,892
Rental income, SEK per m2	1,646	1,551	1,646	1,620
Operating surplus, SEK per m2	1,078	1,005	1,078	1,048
Financial occupancy rate, % – all properties	92	90	92	90
Financial occupancy rate, % – excl project properties	92	91	92	92
Estimated surplus ratio, %	71	72	71	72
Employees
Number of FTEs at period end	269	244	269	250

1) Recalculation has been made for completed share split 2:1 in May 2022.

Key figures & definitions

Basis for key ratios

The basis for key financial ratios that Wihlborgs present in the Interim report January-June 2022, are shown below, page 19. Recalculation has been made of historical key figures per share for completed share split 2:1 in May 2022.

The following financial targets have been established by the Board:

• A return on equity that exceeds the risk-free interest rate* by not less than six percentage points, which for the beginning of 2022 corresponds to 6.12 percent
• The loan-to-value ratio is not to exceed 60 percent
• An equity/assets ratio of no less than 30 percent
• An interest coverage ratio of no less than 2.0

*) Risk-free interest rate is defined as the rate on a 5-year Swedish government bond.

Unless otherwise stated, amounts are in SEK million.	2022-06-30	2021-06-30	2021-12-31
Return on equity
Profit for the period	1,549	1,007	3,348
Annualized	3,098	2,014	3,348
Equity, opening balance	21,948	19,396	19,396
Equity, closing balance	22,607	19,600	21,948
Average equity	22,278	19,498	20,672
Return on equity, %	13.9	10.3	16.2
Return on capital employed
Profit before tax	1,954	1,256	4,170
Interest expense (incl value changes interest derivatives)	-481	41	110
Total	1,473	1,297	4,280
Annualized	2,946	2,594	4,280
Total assets, opening balance	51,152	46,961	46,961
Total assets, closing balance	53,744	48,411	51,152
Non-interest bearing debt, opening balance	-5,764	-5,198	-5,198
Non-interest bearing debt, closing balance	-6,127	-5,301	-5,764
Average capital employed	46,503	42,437	43,576
Return on capital employed, %	6.3	6.1	9.8
Equity/assets ratio
Equity	22,607	19,600	21,948
Total assets	53,744	48,411	51,152
Equity/assets ratio, %	42.1	40.5	42.9
Interest coverage ratio
Income from property management	950	859	1,815
Interest expense	153	156	316
Total	1,103	1,015	2,131
Interest expense	153	156	316
Interest coverage ratio, multiple	7.2	6.5	6.7
Leverage properties
Borrowings	24,853	23,346	23,278
Net value investement properties	51,760	47,056	50,033
Leverage properties, %	48.0	49.6	46.5
Debt/equity ratio
Interest-bearing liabilities	25,010	23,510	23,440
Equity	22,607	19,600	21,948
Debt/equity ratio, multiple	1.1	1.2	1.1

Earnings per share Profit for the period 1,549 1,007 3,348 Average number of shares, thousands 307,427 307,427 307,427 Earnings per share, SEK 5.04 3.28 10.89 Earnings per share before tax Profit before tax 1,954 1,256 4,170 Average number of shares, thousands 307,427 307,427 307,427 Earnings per share before tax, SEK 6.36 4.09 13.56 EPRA EPS Income from property management 950 859 1,815 Tax depreciation, direct tax deductions etc -477 -503 -967 Taxable income from property management 473 356 848 Estimated tax on the above -99 -73 -178 851 786 1,637 Income from property management after deduction of estimated tax Average number of shares, thousands 307,427 307,427 307,427 EPRA EPS, SEK 2.77 2.56 5.33 Operating cash flow per share Operating cash flow 812 682 1,690 Average number of shares, thousands 307,427 307,427 307,427 Operating cash flow per share, SEK 2.64 2.22 5.50 EPRA NDV per share Equity 22,607 19,600 21,948 Number of shares at year end, thousands 307,427 307,427 307,427 EPRA NDV per share, SEK 73.54 63.75 71.39 EPRA NRV per share Equity 22,607 19,600 21,948 Deferred tax liability 4,992 4,081 4,622 Derivatives -669 64 -31 Total 26,930 23,745 26,539 Average number of shares, thousands 307,427 307,427 307,427 EPRA NRV per share, SEK 87.60 77.24 86.33 Dividend yield per share Proposed dividend, SEK - - 3.00 Market price per share at year end, SEK - - 102.70 Dividend yield per share, % - - 2.9 Total yield per share Market price per share at year start, SEK - - 92.70 Market price per share at year end, SEK - - 102.70 Change in market price during the year, SEK - - 10.00 Dividend paid during the year, SEK - - 2.63 Total return per share, % - - 13.6 P/E ratio I Market price per share, SEK 71.55 92.85 102.70 Earnings per share, SEK 5.04 3.28 10.89 Annualized per share, SEK 10.08 6.55 10.89 P/E ratio I, multiple 7.1 14.2 9.4 P/E ratio II Market price per share, SEK 71.55 92.85 102.70 EPRA EPS, SEK 2.77 2.56 5.33 Annualized per share, SEK 5.54 5.11 5.33 12.9 18.2 19.3 P/E ratio II, multiple	2022-06-30	2021-06-30	2021-12-31

Some of the financial metrics that Wihlborgs presents in the interim report are not defined in accordance with IFRS. Wihlborgs is of the opinion that these metrics provide valuable complementary information to investors and the company's management, since they enable evaluation of the company's performance.

As all companies do not apply the same approach to calculating these financial metrics, they are not always comparable to metrics used by other companies. Accordingly, these metrics should not be viewed as replacements for metrics defined under IFRS. On this page, definitions of metrics are presented that, with a few exceptions, are not defined in accordance with IFRS.

Definitions

Key financial ratios

The key ratios are based on the statements of income, financial position, changes in equity and cash flow. Some of the historic data is compiled from the historical summary on page 17 In Wihlborgs' Interim Report.

Return on equity

Profit for the period as a percentage of average equity, excluding non-controlling interests. Average equity refers to the average of the opening and closing values for the respective period. In interim reports, the return is converted to its annualised value without taking account of seasonal variations. The ratio comprises a measure of the profitability in relation to shareholders' equity.

Return on capital employed (ROCE)

Earnings before interest expense, derivatives and taxes (EBIT) as a percentage of average capital employed. Capital employed is defined as total assets less non-interest-bearing liabilities and provisions. Average capital employed refers to the average of the opening and closing balances for each period. In interim reports, the return is converted to its annualised value without taking account of seasonal variations. The metric shows the return on the capital provided by shareholders and lenders without regard to interest.

Equity/assets ratio

Equity as a percentage of total assets at the end of the period. The ratio provides a measure of the financial strength of the company.

Interest coverage ratio

Income from property management, plus interest expense, divided by interest expense. The ratio measures the degree to which earnings can decline without jeopardising interest payments or, alternatively, how much interest expense can increase before income from property management becomes negative.

Loan-to-value ratio, properties

Borrowings as a percentage of the properties' carrying amounts. The ratio shows the degree of borrowing on the property portfolio.

Debt/equity ratio

Interest-bearing liabilities include borrowings, lease liabilities and any other interest-bearing liabilities.The ratio illustrates the relationship between borrowings and equity and, thereby, the gearing and financial strength.

Surplus ratio

The operating surplus, shown as a percentage of rental income. The ratio illustrates the proportion of rental income that remains after deducting property management costs.

Investment yield

The operating surplus shown as a percentage of the properties' average carrying amount. The average carrying amount refers to the average of the opening and closing values for the respective period. In interim reports, the yield is converted to its annualised value without taking account of seasonal variations. The ratio illustrates the yield on the property portfolio without taking account of its financing costs.

Net debt/EBITDA

Loan liabilities minus liquid assets on the balance sheet, measured at five measurement occasions (quarterly) in the last twelve months, divided by operating surplus minus central administration, rolling twelve months. The key figure shows the company's earning capacity relative to loan debt, net.

Share-related key ratios

Earnings per share for the period

Earnings for the period divided by the average number of shares outstanding. Definition according to IFRS.

Earnings per share before tax

Earnings per share before tax divided by the average number of shares outstanding.

EPRA EPS

Income from property management less the estimated tax on taxable income from property management divided by the average number of shares outstanding. Taxable income from property management is defined as income from property management less fiscal depreciation/amortisation and direct deductions. The effect of loss carryforwards is not taken into consideration.

Cash flows from operating activities per share

Cash flows from operating activities divided by the average number of shares outstanding.

EPRA NDV - Net disposal value, per share

The closing balances for equity divided by the number of shares at the end of the period.

EPRA NRV - Net reinstatement value, per share

The closing balances for equity following the reversal of interest-rate derivatives and deferred tax according to the balance sheet, divided by the number of shares at the end of the period.

Dividend yield per share

Proposed dividend as a percentage of the year-end share price.

Total yield per share

Share price performance plus actual dividend relative to the share price at the start of the year.

P/E ratio I, multiple

Market price per share divided by earnings per share. In interim reports, the ratio is converted to its annualised value without taking account of seasonal variations.

P/E ratio II, multiple

Market price per share divided by EPRA RPS per share. In interim reports, the ratio is converted to its annualised value without taking account of seasonal variations.

Average fixed interest period

Time remaining until the interest on all interest bearing debts in average has been adjusted.

Average loan maturity

Time remaining until an average of all interest bearing debts has been refinanced.

Property-related key figures*

These key figures are based on the property table on page 10. The table shows the estimated rental value, rental income and property expenses on an annualised basis with an unchanged property portfolio, based on the contract stock on the first day after the end of the period.

Rental value

Rental income plus estimated market-level rents for unlet space.

Estimated investment yield

Operating surplus as a percentage of the carrying amount for the properties at the end of the period.

Rental income per m2

Rental income on an annualised basis divided by lettable area.

Operating surplus per m2 Operating surplus divided by lettable area.

Economic occupancy rate

Rental income as a percentage of rental value.

Estimated surplus ratio Operating surplus as a percentage of rental income.

Net Lettings New lettings during the period less terminations to vacate.

Like-for-like Excludes properties that both current and comparative period are classified as projects/land, aquired or sold.

*) These key figures are operational and are not regarded as alternative key ratios according to ESMA's guidelines.

Calendar

Interim report Jan-Sept 2022 21 October 2022
Year-end report 2022 14 February 2023
Interim report Jan-March 2023 25 April 2023
Annual General Meeting 26 April 2023

Wihlborgs' interim reports and the Annual Report are distributed electronically. The Annual Report is printed in Swedish and sent to any shareholders notifying the Company that they wish to receive it in printed form.

Press releases Q2 2022

Wihlborgs acquires property in east Copenhagen 28 June 2022
Wihlborgs lets 4,200 square metres at Ideon in Lund 16 June 2022
AutomationsPartner new tenant at Wihlborgs' Flexhus in Helsingborg14 June 2022
Wihlborgs welcomes Aspia to Dockan in Malmö 9 June 2022
Wihlborgs acquires property in central Malmö23 May 2022
Wihlborgs conducts share split18 May 2022
Anna Nambord to take a leave of absence from Wihlborgs 12 May 2022
Wihlborgs introduces pricing on CO2 emissions5 May 2022
Wihlborgs Fastigheter AB (publ) AGM 202226 April 2022
Interim report Jan-Mar 2022: Net lettings remain strong and earnings rise for Wihlborgs26 April 2022
Wihlborgs builds new facility for Nederman in Helsingborg25 April 2022
Wihlborgs' interim report for January-March 2022 will be presented on 26 April21 April 2022
Wihlborgs lets 5,900 m2 at a logistics property in Malmö12 April 2022
Fast-growing SportAdmin – new Wihlborgs tenant in central Malmö4 April 2022

This interim report is information of such a kind that Wihlborgs Fastigheter AB (publ) is legally required to disclose pursuant to the EU's Market Abuse Regulation and the Swedish Securities Market Act. The information was submitted for publication through the agency of the contact people on the next page on 11 July 2022 at 07.30 CEST.

Welcome to us.

Being able to adapt to developments in society to remain relevant has always been our strength. Wihlborgs is growing and developing every day, especially during these challenging times. This is all so we can be the customer-centric, long-term and region-building company that we are.

Contact

Ulrika Hallengren, CEO +46 (0)40-690 57 95, ulrika.hallengren@wihlborgs.se

Arvid Liepe, CFO +46 (0)40-690 57 31, arvid.liepe@wihlborgs.se

Malmö – Headquarters Wihlborgs Fastigheter AB Box 97, SE-201 20 Malmö Visitors: Stora Varvsgatan 11A Tel: +46 40 690 57 00

24 Wihlborgs Interim report January-June 2022

Helsingborg

Wihlborgs Fastigheter AB Terminalgatan 1 SE-252 78 Helsingborg Tel: +46 42 490 46 00

Lund

Wihlborgs Fastigheter AB Ideon Science Park Scheelevägen 17 SE-223 70 Lund Tel: +46 46 590 62 00

Danmark

Wihlborgs A/S Mileparken 22A DK-2740 Skovlunde, Denmark Tel: +45 396 161 57