Interim report January – September 2020

Rental income increased by 6 percent to SEK 937.5 million (885.1).
The net operating surplus increased by 10 percent to SEK 753.1 million (681.9).
Profit from property management rose by 13 percent to SEK 542.5 million (478.0).
Profit for the period decreased to SEK 805.1 million (851.8), corresponding to earnings per share of SEK 21.36 (22.59), including changes in value of SEK 475.4 million (583.5).
Net asset value per share, EPRA NAV, increased to SEK 223.34 (194.07).

Significant events in the third quarter

In September, Catena signed an agreement to acquire the 38,000 square-metre Åre 92 property in Borås at a property value of SEK 272 million.
In September, Benny Thögersen announced that he will resign as CEO of Catena. He will, however, remain in his role until a new CEO has taken office, although not beyond 2021.

TAKING LONG-TERM RESPONSIBILITY

EXCEEDING EXPECTATIONS

BEING COMMITTED

This information is such that Catena AB (publ) is obliged to publish under the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication on 28 October at 8:00 a.m.

Catena in brief

Catena's mission is to develop, own and efficiently manage, through cooperation and in a sustainable manner, strategically located logistics facilities that supply Scandinavia's metropolitan regions and have conditions to generate stable growing cash flows and good value growth.

Vision

Catena's good insights regarding future freight and cargo flows are absolutely crucial to the ability to offer the right locations, the right premises and the right service. By generating strong cash flows, development takes place towards the vision – Catena links Scandinavia's cargo flows.

Business concept

Catena offers logistics facilities for today's and tomorrow's cargo flows along the most important transport routes and at the most important hubs. In close cooperation with the customers and with good knowledge of the market, Catena develops its part of the chain. The business concept clarifies the mission – Catena shall sustainably and through partnerships develop efficient logistics facilities that serve the metropolitan regions of Scandinavia.

Customer offering

Logistics solutions is a collective term for properties whose purpose is the collection, storage and distribution of goods. In order to meet the demands of on-time delivery, climate imprint and cost, logistics facilities with different functions can interact in a more or less complex network.

The Catena Group in figures
	2020, Jul–Sep	2019, Jul–Sep	2020, Jan–Sep	2019, Jan–Sep	Rolling 12-month	2019, Jan–Dec
Rental income, SEK M	315.2	300.1	937.5	885.1	1,235.3	1,182.9
Net operating surplus, SEK M	252.8	226.8	753.1	681.9	974.0	902.8
Surplus ratio, %	80.2	75.6	80.3	77.0	78.8	76.3
Profit from property management, SEK M	184.0	160.1	542.5	478.0	691.3	626.8
Profit for the period, SEK M	481.6	344.3	805.1	851.8	1,177.1	1,223.8
Earnings per share, SEK	12.77	9.13	21.36	22.59	31.22	32.46
Equity ratio, %	34.9	33.7	34.9	33.7	34.9	35.6
Economic letting ratio, %	96.1	96.0	96.1	96.0	96.1	95.0

Relevant, long-term partner

Catena continues to deliver, generating strong cash flows with profit from property management increasing by 13 percent. The ambition to continue growing remains unchanged.

Rental income rose by 6 percent and the operating surplus by 10 percent, compared with the corresponding period in 2019. Profit from property management, amounting to SEK 542.5 million, generated continued strong cash flow in the company. To date, Catena has been affected to only a minor extent by the pandemic, with the repercussions of COVID-19 having actually accelerated development in on-line trade. Accordingly, Catena's offer is more relevant than ever.

We are also seeing a recovery in the financial markets, with increased volumes and slightly lower interest rates than in the preceding quarter. We have, however, yet to return to the levels prevailing prior to the pandemic.

The road ahead

The level of activity is high and the conditions for continued growth are favourable. Project development has been intensive in recent years and Catena has, within a short space of time, established several new, attractive logistics positions. We are also growing through acquisitions – an excellent means for balancing our projects that does not render us dependent on land allocations or detailed planning processes. We recently agreed with Logistic Contractor to acquire the Åre 92 property in the Municipality of Borås. This newly built facility provides 38,000 square metres of lettable space for which fashion company NELLY has signed a 15-year lease.

As we grow, we also assume a long-term responsibility. We are continuously developing our sustainability efforts and recently received two awards from the European Public Real Estate Association (EPRA), demonstrating that we are on the right track – EPRA sBPR Silver and EPRA sBPR Most Improved. Of course we will not let this achievement confine us and are persisting doggedly in our efforts. Energy efficiency represents an important means by which we can reduce our environmental impact and we are eager to test innovative new solutions, such as in Linköping where we are connecting three existing buildings in a local, subterranean, fossil-free energy-supply system. With photovoltaic cells being a more proven technology, it is odd that we are not permitted to fully exploit the large roof areas of our facilities for their installation. Although we see the increase of the taxation limit on electricity used in-house from 255 kW to 500 kW as a step in the right direction, it is insufficient to justify the investment required

and to fully exploit our portfolio's full potential. We look forward to updated regulations that are in line with the climate goals towards which we strive on a daily basis.

Critical expertise

New customers joining us over the past quarter, including online pharmacy MEDS, delivery companies Bring and Instabox, as well as the aforementioned NELLY, confirm that our knowledge on logistics and e-commerce adds significant value for our tenants. The desire to resolve our customers' needs and our long-term ownership of properties mean that we often become part of the overall logistics solution and a partner in terms of more than just the actual property. Automation solutions, digitalisation, sustainable transport and omnichannel strategies are natural points of discussion in our partnerships with tenants in general, and with e-traders in particular. With Amazon now setting up operations in the Swedish market, more players will have to further sharpen their offerings. As property owners, we view all developments in warehousing and logistics as positive and we take the view that Amazon, alongside other players, including Alibaba and Ocado, is hastening a transformation that is already occurring and in which we have an important role to play.The recent upward revaluation our most prominent e-commerce clusters, Logistics Position Sunnanå in Malmö and Logistics Position Tostarp in Helsingborg, verifies both the significance of these properties in the logistics network, as well as our approach.

Highly-motivated organisation

As an organisation, Catena is never entirely satisfied, we seek to exceed expectations and maintain a leading position. In September, I announced that I will be stepping down as CEO of Catena. My commitment to matters involving the logistics of the future is always increasing, however, as is that of all Catena employees. What we do is both enjoyable and important – we contribute to a functioning society through our vision of linking Scandinavia's cargo flows. This is a motivator that will make Catena highly attractive for a long time to come.

Helsingborg, October 2020 Benny Thögersen, CEO

Income and profit

Effects of COVID-19

The novel Coronavirus, COVID-19, has triggered a pandemic that has had a huge impact on public health as well as national economies and the financial markets. Today, the full extent and duration of the pandemic remains unknown, meaning that the future impact on Catena's earnings and position cannot be quantified.

The impact on the reporting period presented here was limited. The uncertain market situation has entailed in a sharper assessment of the reserve for expected credit losses, resulting in a reduction in income of about SEK 6 million for the period. Catena maintains a close dialogue with its customers and has, among other things, offered liquidity relief in the form of extended payment deadlines.

The economic impact of the pandemic has caused uncertainty regarding future income to the discounted cash flows on which valuations of investment properties are based, which has been taken into account in the values.

Rental income

Rental income for the period increased by 6 percent to SEK 937.5 million (885.1), corresponding to SEK 660 per square-metre (653) when adjusted for non-recurring effects. Income for the period was affected by compensation for the premature termination of leases in the amount of SEK 14 million, where the vacancy is immediately filled by a new tenant, and reserves for feared credit losses in the amount of approximately SEK 6 million. In comparable portfolios, rental income, adjusted for non-recurring effects, increased by 1.5 percent compared with the preceding year. The remaining increase in rental income derives from completed projects and the effect of acquisitions.

Income from contracts with terms of more than three years accounted for close to 75 percent of Catena's contracted

annual rent. This entails stable income that does not vary substantially between periods, except in connection with acquisitions, completed projects and sales. The average remaining lease period is slightly less than five years.

Duration of leases
Duration	Number of contracts	Contractual annual rent, SEK M	Contractual annual rent, %
2020	49	1.7	0
2021	156	163.5	13
2022	74	163.2	12
2023	66	182.9	14
2024	44	140.8	11
2025	26	141.4	11
2026+	58	507.4	39
Total	473	1,300.9	100

Property expenses

Property expenses decreased to SEK 184.4 million (203.2), corresponding to SEK 131 per square-metre (150). Planned maintenance has to some extent been postponed due to tenants limiting access to premises to mitigate the spread of COVID-19.

There are seasonal variations in the operation and maintenance of properties. Very cold winters with a lot of snow entail higher costs for heating and snow removal. A hot summer can mean increased expenses for cooling. These variations, that have the greatest impact during the winter and summer months, are, to some extent, offset by a change in billed expenses to tenants. The winter of 2019/2020 was milder than normal and had less snowfall.

	Rental income, regions
		2020, Jul–Sep		2019, Jul–Sep		2020, Jan–Sep		2019, Jan–Sep		Rolling 12-month		2019, Jan–Dec
SEK M	Rental income	Of which, re-invoiced *	Rental income	Of which, re-invoiced *	Rental income	Of which, re-invoiced.*	Rental income	Of which, re-invoiced.*	Rental income	Of which, re-invoiced.*	Rental income	Of which, re-invoiced.*
Gothenburg	43.1	2.4	45.0	2.8	124.0	6.7	131.7	7.3	165.5	9.7	173.2	10.3
Helsingborg	55.7	3.5	51.7	4.0	163.8	11.0	153.7	11.0	217.3	15.2	207.2	15.2
Jönköping	28.0	3.4	23.8	3.5	80.8	10.3	70.5	9.8	106.5	14.1	96.2	13.6
Malmö	54.6	10.7	49.5	10.1	158.5	29.8	141.3	29.5	207.8	39.8	190.6	39.5
Stockholm	133.8	8.8	130.1	10.5	410.4	30.2	387.9	29.1	538.2	40.4	515.7	39.3
Total	315.2	28.8	300.1	30.9	937.5	88.0	885.1	86.7	1,235.3	119.2	1,182.9	117.9

* Of which, re-invoiced expenses.

Operating surplus, regions
	2020 Jul–Sep	2019 Jul–Sep	2020 Jan–Sep	2019 Jan–Sep	Rolling 12-month	2019 Jan–Dec
Gothenburg	36.7	38.5	106.3	114.1	138.3	146.1
Helsingborg	43.5	38.6	126.2	114.6	164.8	153.2
Jönköping	21.3	16.0	59.3	44.3	75.5	60.5
Malmö	39.5	32.0	115.6	94.3	148.0	126.7
Stockholm	111.8	101.7	345.7	314.6	447.4	416.3
Total	252.8	226.8	753.1	681.9	974.0	902.8

Financial expenses

Financial expenses, excluding expenses for lease assets, amounted to SEK 178.6 million for the period (169.7). The average interest rate is 0.2 percentage points lower than in the corresponding period last year, while the loan portfolio increased by approximately SEK 976 million.

Profit

Profit from property management during the period rose by SEK 64.5 million to SEK 542.5 million compared with the preceding year – an increase of 13 percent. The primary reason for the improved profit from property management is an increased operating surplus.

Profit for the period amounted to SEK 805.1 million, which is SEK 46.7 million lower than in the preceding year. The unrealised changes in value of properties amounted to SEK 480.0 million (592.2). The change in the value of derivatives was a negative SEK 4.6 million (79.9).

The unrealised changes in value are of an accounting nature and do not affect cash flow.

At Logistics Position Sunnanå in Malmö, final construction is in progress planning procedure to enable the continued expansion of the are is

Consolidated statement of comprehensive income
SEK M	2020 Jul–Sep	2019 Jul–Sep	2020 Jan–Sep	2019 Jan–Sep	Rolling 12-month	2019 Jan–Dec
Rental income	315.2	300.1	937.5	885.1	1,235.3	1,182.9
Property expenses	-62.4	-73.3	-184.4	-203.2	-261.3	-280.1
Net operating surplus	252.8	226.8	753.1	681.9	974.0	902.8
Central administration	-7.0	-8.0	-24.0	-24.0	-34.1	-34.1
Other operating income	1.7	0.4	2.3	1.7	5.1	4.5
Other operating expenses	-0.2	–	-1.7	-0.2	-1.9	-0.4
Interest in profits from associated companies	0.4	-1.1	-3.1	-6.9	-7.7	-11.5
Financial income	0.6	0.4	1.9	2.5	2.8	3.4
Financial expenses	-61.8	-56.3	-178.6	-169.7	-237.1	-228.2
Financial expenses for right-of-use assets	-2.5	-2.1	-7.4	-7.3	-9.8	-9.7
Profit from property management	184.0	160.1	542.5	478.0	691.3	626.8
Realised changes in value of investment properties	–	58.7	–	71.2	4.0	75.2
Unrealised changes in value of investment properties	403.3	209.7	480.0	592.2	679.0	791.2
Changes in values of derivatives	19.3	-9.5	-4.6	-79.9	104.6	29.3
Profit before tax	606.6	419.0	1,017.9	1,061.5	1,478.9	1,522.5
Tax for the period/year	-125.0	-74.7	-212.8	-209.7	-301.8	-298.7
Profit for the period/year	481.6	344.3	805.1	851.8	1,177.1	1,223.8
Other comprehensive income
Translation difference	1.0	2.0	0.3	8.6	-6.1	2.2
Comprehensive income for the period/year	482.6	346.3	805.4	860.4	1,171.0	1,226.0
Comprehensive income for the period/year distributed among the Parent Company's shareholders	482.6	346.3	805.4	860.4	1,171.0	1,226.0
Key share data
Shareholders' equity, SEK per share	182.46	157.89	182.46	157.89	182.46	167.59
Net asset value per share, EPRA NAV, SEK	223.34	194.07	223.34	194.07	223.34	202.87
Profit for the period/year, SEK per share	12.77	9.13	21.36	22.59	31.22	32.46
Number of shares outstanding, millions	37.7	37.7	37.7	37.7	37.7	37.7

Profit from property management Q R12

Financial position

Cash flow
SEK M	2020 Jan–Sep	2019 Jan–Sep	2019 Jan–Dec
Profit before tax	1,017.9	1,061.5	1,522.5
Adjustments for
non-cash items	-470.3	-575.4	-894.9
Tax paid	-5.8	-14.8	-15.1
Cash flow before changes in working capital	541.8	471.3	612.5
Change in operating receivables	1.7	-28.5	-87.1
Change in operating liabilities	-161.1	26.6	88.3
Cash flow from operating activities	382.4	469.4	613.7
Acquisition of assets via subsidiaries	-142.3	-18.7	-18.7
Divestment of operations	–	–	7.6
Investments in investment properties	-722.2	-505.2	-752.6
Divestment of investment properties	–	–	0.2
Acquisitions of property, plant and equipment	-0.1	-0.2	-3.2
Change in financial assets	-16.6	59.2	-58.8
Cash flow from investment
operations	-881.2	-464.9	-825.5
Change in loans	1,183.6	413.2	277.7
Dividend paid	-245.0	-216.8	-216.8
Cash flow from financing
operations	938.6	196.4	60.9
Cash flow for the period	439.8	200.9	-150.9
Opening cash and cash equivalents	131.2	281.2	281.2
Exchange rate difference in cash and cash equivalents	0.1	1.9	0.9
Closing cash and cash equivalents	571.1	484.0	131.2

Statement of financial position
SEK M	2020 30 Sep	2019 30 Sep	2019 31 Dec
Assets
Fixed assets
Goodwill	503.0	503.0	503.0
Investment properties	17,779.2	15,918.3	16,270.5
Tangible fixed assets	1.8	1.2	4.0
Right-of-use assets	334.5	330.2	330.2
Financial non-current assets	173.9	107.2	170.0
Deferred tax assets	86.2	110.1	85.1
Current assets
Current receivables	269.4	205.9	276.1
Cash and cash equivalents	571.1	484.0	131.2
Total assets	19,719.1	17,659.9	17,770.1
Equity and liabilities
Equity attributable to Parent Compa ny shareholders	6,878.4	5,952.4	6,318.0
Non-current liabilities
Interest-bearing liabilities	8,127.3	5,086.6	4,784.7
Deferred tax liability	1,744.9	1,486.5	1,537.0
Lease liability	332.0	327.8	327.8
Other non-current liabilities	389.8	493.4	384.3
Current liabilities
Interest-bearing liabilities	1,835.7	3,900.6	3,999.9
Other current liabilities	411.0	412.6	418.4
Total equity and liabilities	19,719.1	17,659.9	17,770.1

Change in equity
2020 30 Sep	2019 30 Sep	2019 31 Dec
6,318.0	5,308.8	5,308.8
-245.0	-216.8	-216.8

		1,226.0
6,878.4	5,952.4	6,318.0

6,878.4	5,952.4	6,318.0
	805.4	860.4

Cash flow before change in working capital

Interest-bearing liabilities, SEK M Investment properties, SEK M Loan-to-value ratio, %

The property portfolio

Property portfolio
SEK M	Fair amount	Number of properties
Property portfolio at beginning of year	16,270.5	109
Acquisitions*	302.6	3
Investments in existing properties	722.2
Translation differences, etc.	3.9
Unrealised changes in value	480.0
Total investment properties	17,779.2	112

* Property value after deduction of deferred tax and with addition of transaction expenses.

Changes in the property portfolio

During the period, Catena acquired the Lokesvej 18 property in Hilleröd, Denmark; the Kometvej 15 property in Horsens, Denmark and the Magasinet 3 property in Södertälje, Sweden at a total value of SEK 302.6 million.

In addition, investments have been made in new construction, remodelling and extensions at existing properties for SEK 722.2 million. PostNord has now moved into its new 18,300 square-metre terminal at the Plantehuset 3 property at Logistics Position Tostarp, in Helsingborg, and the extension expanding Nowaste Logistics' large warehouse from 30,400 square metres to 48,500 square metres is now in full operation.

In Ängelholm, E-City is being expanded with a new 22,800 square-metre building for Boozt Fashion.

At Logistics Position Sunnanå, outside Malmö, construction of DHL Express' new 10,200 square-metre air cargo warehouse is being completed, as is the second part of the 36,200 square-metre multi-tenant warehouse.

Property valuation

During the period, unrealised changes in the values of Catena's properties have mainly arisen as an effect of well-executed projects, new leases, lower yield requirements and, taking the uncertainties caused by the corona virus into account, these amounted to SEK 480.0 million for the period. This corresponds to 2.8 percent of the value before adjustment.

Each quarter, Catena implements internal valuations of all its investment properties and this is used to determine the fair values recognised in the balance sheet. During the first three quarters of the year, about SEK 7.2 billion of the property

portfolio was valued externally. The external valuations we obtain to assure the accuracy of our internal valuations show a decrease in the market's yield requirements.

All of the Group's investment properties are assessed as being at level 3 in the valuation hierarchy. A detailed description of the valuation principles is available on page 35 of Catena's Annual Report for 2019.

A certain discrepancy is permitted between the internal valuation and the fair value before the fair value is adjusted. The discrepancy should be within a range controlled by a permitted discrepancy from the established direct yield requirement of +/– 0.25 percent. Only when the deviation exceeds or falls short of this range is the fair value adjusted. This discrepancy is accepted since there is always an element of uncertainty in the estimated value.

Sustainable properties

Catena works to create sustainable properties by considering the life cycle of the entire building. While tightening requirements on materials used in projects, implementing energy efficiency projects and environmental certifications safeguards energy-efficient operation of Catena's buildings while maintaining a healthy indoor environment. Catena is working actively to increase knowledge about emissions occurring during construction projects and to find sustainable solutions that reduce emissions.

All of Catena's new buildings meet Miljöbyggnad Silver environmental certification as a minimum. In 2020, five buildings, with a total area of 101,771 square metres, achieved Miljöbyggnad Silver certification. Certification processes are currently ongoing or being prepared for a further eight buildings. Catena is also examining opportunities to raise the sustainability performance of its existing portfolio and has initiated certification in accordance with Miljöbyggnad iDrift (environmental building in operation) for its Backa 23:5 property. A total 221,519 square metres have been certified or are currently undergoing Miljöbyggnad certification, corresponding to 11 percent of Catena's total lettable area.

Catena is also working actively with photovoltaic facilities, with seven new facilities currently being installed. Along with the facilities already installed on Catena's roofs, these are estimated to achieve an annual consumption of approximately 5,000 MWh. That is equivalent to the annual consumption of around 250 single-family homes.

	Properties by region
Regions	Number of properties	Lettable area, thousand sq. m.	Fair value, SEK M	Rental value, SEK M	Economic letting ratio, %	Contractual annual rent, SEK M	Surplus ratio, %
Gothenburg	15	231.7	2,328.5	174.2	98	170.4	86
Helsingborg	23	428.1	3,503.6	259.4	96	248.8	77
Jönköping	12	222.2	1,294.2	125.5	96	120.7	73
Malmö	19	241.8	3,111.4	218.2	98	214.4	73
Stockholm	43	789.0	7,541.5	576.8	95	546.6	84
Total	112	1,912.8	17,779.2	1,354.1	96	1,300.9	80

Property acquisition

Property designation	Transfer date	Region	Municipality	Space, sq. m.	Property value, SEK M	Rental income/ year, SEK M
Lokesvej 18	31 Jan 2020	Malmö	Hilleröd, DK	4,176	96.5	5.8
Kometvej 15	31 Jan 2020	Malmö	Horsens, DK	4,484	79.7	4.2
Magasinet 3	14 Feb 2020	Stockholm	Södertälje	21,240	130.0	12.0
Total				29,900	306.2	22.0

Efficient management

Jörgen Eriksson, phone +46 (0)42-449 22 42 [email protected] Deputy CEO, Head of Business and Property Development

Fredrik Renå, phone +46 (0)72-743 45 44 [email protected] Regional Manager, Malmö

Göran Jönsson, phone +46 (0)42-449 22 66 [email protected] Regional Manager, Helsingborg

Jonas Arvidsson, phone +46 (0)73-070 22 60 [email protected] Regional Manager, Gothenburg and Jönköping

Tobias Karlsson, phone +46 (0)73-070 22 36 [email protected] Regional Manager, Stockholm

Projects

Project portfolio

Catena has the ambitious objective of growing by investing in projects, partly by developing the existing properties, but above all by developing the company's potential land reserves of approximately 5 million square metres. The project portfolio includes remaining investments of SEK 432 million, including major projects, new construction and tenant adaptations to existing properties alike.

E-City Engelholm

Catena is seeing customers impose increased demands on the geographical location of warehouses. The trends, particularly with regard to e-commerce, are that deliveries should be faster, preferably arriving the next day. In minimising shipping times for goods, location becomes an important factor when establishing new warehouses.

This is particularly noticeable at Catena's E-City Engelholm site, with its excellent location alongside the E6 motorway in Ängelholm's southern environs and its proximity to the E4 motorway, with which large parts of Scandinavia can be reached quickly. The largest tenant at the site is e-commerce company Boozt, which, on occupying its extension on 1 December this year, will be leasing 66,300 square metres of warehousing here. Third-party logistics operator Dream-Logistics is also located here, leasing a 14,500 square-metre warehouse. The planning of additional buildings on the property is in full swing and Catena expects the area to be able to accommodate more than 100,000 square metres of warehousing and logistics buildings.

Immediately adjacent to E-City, Catena has signed an option to acquire an additional 850,000 square metres of land. The detailed planning process is now in progress for this site and Catena hopes soon to be able to develop it into an e-commerce centre with the potential to deliver rapidly and sustainably to Scandinavians for many years to come.

Energy-efficient properties

Catena works continuously to reduce its properties' climate footprint and operating costs by streamlining their energy consumption. A good example of this is Catena's site on Köpetorpsgatan in Linköping, immediately adjacent to the airport. Catena has three buildings at the site with 57,000 square metres of warehousing and logistics space, with Arla, ICA and Bring, among others, as tenants. Catena also holds land suitable for another building of approximately 10,000 square metres.

The three buildings, as well as a future fourth building, will share a new, fully self-sufficient energy system and will be disconnected from the district heating system. The energy system is based on the heat generated by the freezers in a cold storage unit in one of the buildings being stored in a geothermal storage plant comprising some 50 boreholes with a total depth of 15,000 metres.

The properties' systems will be connected, allowing the heat generated by the freezers to be used for heating in all of the buildings. Energy consumption is estimated to decrease to 10 kWh/m², compared with the average for Catena's property portfolio at 38.5 kWh/m². Catena will continue to work on combining energy systems for several properties.

	Progress of major projects during the quarter1)
Project	Property	Municipality	Lettable space, m2	assessed net operating surplus SEK M	Estimated investment, SEK M	Degree of completion by Q3 2020, SEK M	Letting ratio on the balance sheet date, %	Completed 2)
New construction and extensions in progress > SEK 100 million
PostNord	Plantehuset 3	Helsingborg	18,300	15.7	250	250	100	Occupied in Q3
Nowaste Logistics, extension	Plantehuset 3	Helsingborg	18,000	9.1	132	107	100	Occupied in Q3
DHL Express	Sunnanå 12:52	Burlöv	10,200	10.2	150	116	100	2020 Q4
Boozt Fashion	Norra Varalöv 31:11	Ängelholm	22,800	12.0	193	133	100	2020 Q4
Multi-tenant warehouse, stage 2	Sunnanå 12:52	Burlöv	18,100	12.2	179	163	100	2021 Q1
Seafrigo Nordic	Part of Broby 57:1 Åstorp		10,800	9.0	147	0	100	2021 Q3
Total, ongoing major projects			98,200	68.2	1,051	769

1) In addition to the larger projects reported in the table, minor projects and adaptations for tenants occur.

2) Catena considers a project to have been completed when receiving a certificate of completion and/or when the tenant makes its first rent payment.

Financing

	Capital and interest maturity
			Debt maturity	Fixed interest, including derivatives
Year	SEK M	Share, %	Interest, including margin, %	SEK M		Share, % Interest, including margin, %*
0–1	1,775.3	17.8	1.4	4,430.9	44.5	1.9
1–2	3,053.2	30.7	1.4	500.0	5.0	3.7
2–3	3,469.9	34.8	1.4	908.0	9.1	2.4
3–4	1,506.3	15.1	1.2	0.0	0.0	0.0
4–5	0.0	0.0	0.0	1,219.2	12.2	3.0
5–	158.3	1.6	0.8	2,904.9	29.2	2.7
Total	9,963.0	100.0	1.3	9,963.0	100.0	2.4

* The margin is evenly spread across the maturity structure of the swap portfolio.

Interest-bearing liabilities

At the end of the period, interest-bearing liabilities amounted to SEK 9,963.0 million (8,987.2) of which the share of traditional bank loans amounted to 83 percent, secured bonds to 11 percent, Danish mortgage bonds to 3 percent and commercial papers to 3 percent. At the time, there were confirmed and unutilised credit commitments from banks amounting to SEK 700 million.

During the period, Catena negotiated/renegotiated financing agreements with a total framework of SEK 5,780.1 million and, in addition, extended the backup facility from SEK 1 billion to SEK 2 billion. On the balance sheet date, the interest maturity, including derivatives, averaged 3.1 years, and debt maturity averaged 2.2 years.

Interest expenses and sensitivity

On the balance sheet date, the average interest rate, including the cost of derivatives and unutilised lines of credit, was 2.4 percent (2.6).

If the market interest rate defined as Stibor 3-month were to increase by one percentage point, all else being equal, the interest expenses would increase by around SEK 33 million. If the market interest rate were to instead decrease by one percentage point, the interest expenses would increase by around SEK 35 million.

An explanation of the effect of the sensitivity is in part that the majority of the Group's loans are encumbered by interestrate floors that limit the interest changes on the downside by the market rate not being able to be negative at the same time that the cost of the outstanding and purchased interest derivatives can increase by negative market interest rates.

Bond financing

During the period, Catena issued secured bonds and extended financing agreements totalling SEK 1,258 million within the framework of Svensk FastighetsFinansiering (SFF). On the balance sheet date, the outstanding volume was SEK 1,493 million.

SFF is equally owned by Catena, Diös, Fabege, Platzer and Wihlborgs. The MTN programme, which is secured by property mortgages, amounts in its entirety to SEK 12 billion. SFF holds a credit rating equivalent to BBB+ from Nordic Credit Rating. More about SFF can be found on the company's website Svenskfastighetsfinansiering.se

Commercial paper financing

Catena has a commercial paper programme with a limit of SEK 2 billion. Papers within the programme have a maturity of at most 364 days. The programme is arranged by Swedbank AB, which also functions as an issuing institute together with Danske Bank. To manage the refinancing risk, the programme has secured backup facilities (through property mortgages).

On the balance sheet date, the outstanding volume was nominally SEK 325 million, which is within the scope of the unutilised lines of credit from banks.

Derivative instruments

Financial instruments consist of derivative instruments in Category 2 of the valuation hierarchy. The derivatives are marked to market, meaning that the carrying amount agrees with the fair value. The change is recognised in the Income Statement. The carrying amount was a negative SEK 385.7 million (490.4). The change in value of the derivatives does not affect cash flow and, on reaching maturity, the value of derivatives is always zero.

The nominal value of the derivatives is equivalent to 57 percent of consolidated interest-bearing liabilities.

During the period, Catena entered into new interest rate swaps for a nominal SEK 1.2 billion, at an average fixed interest rate of 0.16 percent and partly extended existing interest rate swaps for approximately SEK 1.1 billion at a new average fixed interest rate of 1.7 percent. All in all, this extends the fixed income portfolio's interest maturity and secures a substantial share of the Group's interest expenses.

		Reduction in the rate of interest through interest-rate swaps
Start year	End year	Contract interest, %	SEK M
2011	2021	2.9	500.0
2012	2021	2.7	191.7
2013	2021	2.8	22.0
2013	2021	2.8	36.7
2012	2022	2.3	500.0
2014	2023	1.7	500.0
2014	2024	1.4	500.0
2017	2025	2.3	561.0
2017	2026	2.7	572.0
2020	2027	0.2	300.0
2020	2027	0.2	300.0
2020	2028	0.1	300.0
2020	2028	0.1	300.0
2020	2029	1.5	561.0
2020	2030	1.9	572.0
Total		1.7	5,716.4

Current earnings capacity
SEK M	2020 30 Sep	2020 30 Jun	2020 31 March	2019 31 Dec	2019 30 Sep	2019 30 Jun	2019 31 March	2018 31 Dec
Rental income	1,312.6	1,285.8	1,245.9	1,208.9	1,183.6	1,169.6	1,157.7	1,158.0
Property expenses	-299.8	-293.7	-284.5	-276.0	-272.4	-268.2	-265.5	-276.0
Net operating surplus	1,012.8	992.1	961.4	932.9	911.2	901.4	892.2	882.0
Central administration	-36.4	-36.4	-36.4	-36.4	-32.4	-32.4	-32.4	-32.4
Interest in profits from associated com
panies	-5.0	-5.0	-5.0	-5.0	-5.0	-5.0	-5.0	-5.0
Net financial items	-235.5	-235.6	-221.9	-223.4	-224.6	-216.8	-216.2	-223.9
Ground rent	-9.8	-9.8	-9.8	-9.8	-9.7	-10.5	-10.5	–
Profit from property management	726.1	705.3	688.3	658.3	639.5	636.7	628.1	620.7
Tax for the period	-155.4	-150.9	-147.3	-140.9	-136.9	-136.3	-134.4	-132.8
Profit for the period	570.7	554.4	541.0	517.4	502.6	500.4	493.7	487.9
Key share data
Profit for the period/year, SEK per share	15.1	14.7	14.4	13.7	13.3	13.3	13.1	12.9
Number of shares outstanding, millions	37.7	37.7	37.7	37.7	37.7	37.7	37.7	37.7

In the table, Catena presents its earnings capacity on a 12-month basis. As the table is not equivalent to a forecast, but is intended to reflect a normal year, actual outcomes may differ because of decisions that affect the outcome positively as well as negatively in relation to normal years, like unforeseen events. The presented earnings capacity does not include any assessment of changes in rent, vacancy or interest rate. Catena's income statement is also affected by changes in value and changes in the property portfolio as well as changes in the value of derivative instruments. None of this

has been taken into account in the current earnings capacity. The net operating surplus is based, at the balance sheet date, on contracted leases and normalised property expenses for the current portfolio. Financial expenses are based on Catena's average interest rate level including hedges for current loan debt less capitalised interest in normal project volume. As of 2019, ground rents are no longer recognised as property expenses, but rather as interest on the lease liability for the right-of-use assets. The tax is calculated on a conventional basis according to the tax rate at any given time.

Dividend yield

%	2020 30 Sep	2020 30 Jun	2020 31 March	2019 31 Dec	2019 30 Sep	2019 30 Jun	2019 31 March	2018 31 Dec
EPRA NIY (initial yield)	5.7	5.9	5.9	5.8	6.0	6.1	6.2	6.2
EPRA "topped-up" NIY (normalised yield)	6.0	6.1	6.1	6.1	6.3	6.3	6.5	6.4

Catena presents a direct yield here in the form of "Net Initial Yield (NIY)" and "topped-up" Net Initial Yield in accordance with EPRA's definitions. Both key figures are calculated on the basis of Investment properties according to the consolidated balance sheet plus addition of ownership of investment properties in joint ventures and after deductions for development land and projects not yet completed. Net initial yield (NIY) is based on contractual annual rent for properties in Catena's own portfolio as well as our share of contractual annual rent in properties owned by joint ventures after deduction of initial discounts. From these annual rents, deductions are made for

expected operating and maintenance expenses, property tax and property administration. The net operating surplus calculated in this way differs from current earnings capacity mainly because contracted annual rent and expenses for projects not yet completed are not included.

In the calculation of EPRA "topped-up" NIY, contracted annual rent is used without deduction of initial discounts. Up to 31 December 2018, ground rents were also included in the property expenses. The change affects the direct yield by around 0.1 percentage points.

Shares and shareholders

The share

As at the closing date, the Catena share was registered on the Nasdaq Stockholm Nordic Mid Cap list. The closing price on 30 September 2020 was SEK 397.50, against the closing price of SEK 413.50 on 30 December 2019, representing an decrease of 4 percent over the period. During the period, the highest price noted for the Catena share was SEK 446.00 and the lowest was SEK 213.50. Since the autumn of 2017, Catena's share has been included in the international property index EPRA.

As of 30 September 2020, Catena had 14,700 shareholders and the number of shares amounted to 37,698,853.

Share price trend 1 October 2018 – 30 September 2020

-16 -17 -18 -19 Q3

-20

Dividend policy

In the long term, Catena's dividends shall amount to at least 50 percent of profit from property management less standard rate tax.

Financial reporting

19 February	2021 Year-end Report 2020
29 April 2021	2021 Annual General Meeting
29 April 2021	Interim Report, January – March 2021

A webcast presentation of Catena's interim report for the third quarter of 2020 will take place on 28 October at 10.00 a.m. CET – see instructions for participation on Catena's website. Up-to-date financial information is always available in both Swedish and English on Catena's website.

Ownership structure at 30 September 2020, major shareholders
	No. of shares, 000s	Votes, %
Backahill	11,221	29.8
PGGM Pensioenfonds	3,193	8.5
Länsförsäkringar Fonder	2,891	7.7
SFU Sverige AB	1,310	3.5
Fjärde AP-Fonden (AP4)	937	2.5
Vanguard	867	2.3
SEB Fonder	782	2.1
Norges Bank	626	1.7
Aberdeen Standard Investments	546	1.4
BMO Global Asset Management	489	1.3
Cohen & Steers	486	1.3
BlackRock	449	1.2
Swedbank Robur Fonder	399	1.1
Odin Fonder	348	0.9
Other shareholders	13,155	34.7
Total	37,699	100.0

catenafastigheter.se phone +46 (0)42 449 22 44

Parent Company's financial statements

Parent Company Income Statement
SEK M	2020, Jan–Sep	2019, Jan–Sep	2019, Jan–Dec
Net sales	41.2	37.4	50.6
Cost of services performed	-63.2	-61.4	-85.0
Operating profit/loss	-22.0	-24.0	-34.4
Financial income and expenses
Other interest income and similar income	155.6	173.0	212.4
Profit from participations in Group companies	–	–	58.1
Interest expenses and similar expenses	-109.4	-184.8	-109.3
Profit before appropriations and taxes	24.2	-35.8	126.8
Tax on profit for the period/year	-5.2	6.9	-37.0
Comprehensive income for the period/year	19.0	-28.9	89.8

No items in the Parent Company are recognised in other comprehensive income and total comprehensive income is therefore consistent with profit for the period/year.

Parent Company Balance Sheet
SEK M	2020, 30 Sep	2019, 30 Sep	2019, 31 Dec
Assets
Fixed assets
Tangible fixed assets	0.9	1.2	1.0
Financial non-current assets	3,236.2	3,236.2	3,236.2
Deferred tax assets	80.1	101.4	78.9
Non-current receivables	27.2	25.9	25.4
Current assets
Receivables from Group companies	4,414.9	3,616.6	3,728.5
Receivables from associated companies	0.5	27.9	34.9
Current receivables	7.6	13.8	24.7
Cash and cash equivalents	559.9	359.4	90.0
Total assets	8,327.3	7,382.4	7,219.6
Equity and liabilities
Shareholders' equity	2,681.5	2,788.7	2,907.5
Untaxed reserves	24.1	24.2	24.1
Non-current liabilities
Interest-bearing liabilities	1,724.3	794.1	674.3
Provisions	3.0	–	2.1
Other non-current liabilities	385.7	492.3	381.1
Current liabilities
Liabilities to Group companies	3,461.9	3,245.6	3,194.0
Liabilities to associated companies	7.2	–	–
Other current liabilities	39.6	37.5	36.5
Total equity and liabilities	8,327.3	7,382.4	7,219.6

Financial targets, Group operations

Other

Market outlook

Over time, the market for logistics properties is driven by increased cargo flows and growing retail trade, particularly e-commerce. Technical factors enabling a transition to digital commerce, followed by expanded delivery methods, continues to drive demand for larger spaces for logistics purposes and we believe we are in the midst of an ongoing phase of development. This development is currently being partly overshadowed by the novel Coronavirus, COVID-19, which has triggered a pandemic that has had a huge impact on public health as well as national economies and the financial markets. Today, the full extent and duration of the pandemic remains unknown, meaning that the future impact on Catena's earnings and position cannot be quantified. It is nonetheless our assessment that long-term demand for Catena's properties, which are well-suited to their purposes, is very favourable.

The combination of limited access to developable land and modern, strategically located logistics premises is a reality favouring growth in new production in the long term and, in certain locations, also at a higher rent level. In our view, growth in digital commerce linked to FMCG and parcel deliveries is, on the whole, set to accelerate and will therefore contribute to a stable letting ratio even in the future. We note that certain segments have experienced particularly strong digitally drive sales in the wake of the virus outbreak and make the assessment that this could increase the transition we are already experiencing.

Following the shock of the Coronavirus to the world early in the year, both the transaction and capital markets are now showing signs of recovery in the third quarter. In addition to the world's collective effort to curb the virus, record-breaking monetary and fiscal stimulus measures have contributed to the recovery.

We are not yet able to draw any definitive conclusions regarding the development of COVID-19. We continue to monitor the situation closely, however, and are preparing ourselves, as far as possible, for any unpredictable effects that may occur in the long term.

Related parties

This year's earnings include minor related-party transactions with Hansan AB.

Catena's sustainability activities

Sustainability is one of Catena's four prioritised areas. Our sustainability work focuses on participating in social progress by establishing the conditions for more sustainable logistics, reducing the environmental impact of our properties and being an attractive employer. The sustainability work is organised within the Agenda 2030 framework and, as a member of the United Nations Global Compact, the Company works actively to contribute to the global sustainability goals.

We further develop our sustainability efforts by participating in networks and monitoring external trends. This brings an increased focus on issues of sustainability while also strengthening our partnerships with stakeholders. The sustainability efforts bring solid commercial benefits by, among other things, generating conditions for green financing.

Catena received two awards during the autumn – EPRA sBPR Silver and EPRA sBPR Most Improved. The European Public Real Estate Association (EPRA ) is an organisation representing the European property sector and supports the transition to a sustainable built environment by means of its Sustainability Best Practices Recommendations (sBPR) in the areas of energy, greenhouse gas emissions, water, waste, as well as on social and management metrics. The metrics and awards show how Catena's sustainability efforts are progressing by providing figures for comparison.

To ensure that Catena's targets for reducing greenhouse gas emissions reflect current science and the Paris Agreement (to limit global warming to 1.5 °C), Catena had its Science Based Target initiative (SBTi) approved during the autumn of 2020. SBTi is a worldwide initiative in collaboration between the WWF, the UN Global Compact, the CDP and the World Resources Institute.

Quarterly overview

Quarterly overview
	2020 Q3	2020 Q2	2020 Q1	2019 Q4	2019 Q3	2019 Q2	2019 Q1	2018 Q4
Rental income, SEK M	315.2	307.2	315.1	297.8	300.1	291.0	294.0	285.3
Net operating surplus, SEK M	252.8	251.2	249.1	220.9	226.8	231.9	223.2	217.1
Surplus ratio, %	80.2	81.8	79.1	74.2	75.6	79.7	75.9	76.1
Economic letting ratio, %	96.1	95.9	95.4	95.0	96.0	95.5	95.8	95.9
Profit from property management, SEK M	184.0	181.1	177.4	148.8	160.1	162.0	155.9	148.5
Profit for the period, SEK M	481.6	179.7	143.8	372.0	344.3	261.7	245.8	158.1
Return on equity, %	7.3	2.8	2.3	6.1	6.0	4.7	4.5	3.0
Equity ratio, %	34.9	34.0	35.1	35.6	33.7	33.0	33.7	33.4
Share price at end of period, SEK	397.50	367.00	289.50	413.50	323.00	292.00	257.50	220.50
Cash flow before change in working capital per share, SEK	4.86	4.84	4.67	3.75	4.29	4.40	3.81	4.01
Earnings per share, SEK	12.77	4.77	3.81	9.87	9.13	6.94	6.52	4.19
Net asset value per share, EPRA NAV, SEK	223.34	207.79	208.16	202.87	194.07	182.01	178.50	169.53

Important events

On 9 January, Catena acquired three properties in Hilleröd, Horsens and Odense, in Denmark, from PostNord, which is also a tenant in the relevant properties. The acquisitions were conducted as a corporate transaction at a total underlying property value of SEK 235 million following the deduction of deferred taxes. The properties are situated on plots with a combined area of approximately 61,000 square metres and have a combined lettable area of 12,700 square metres. Development rights for about 20,000 square metres are also associated with the properties, offering opportunities for future expansion. PostNord is signing a ten-year lease in connection with the transaction and the estimated net operating surplus for the properties amounts to approximately SEK 12.7 million. Catena took possession of the properties in Hilleröd and Horsens on 31 January. The building in Odense is under construction, with Catena being scheduled to take possession on 1 September 2020.

On 10 January, Catena and Coop Logistik announced that they had agreed to continue discussions with the intention of Catena acquiring a property and constructing an approximately 105,000 square-metre automated warehouse in the Municipality of Eskilstuna. For Catena, this statement of intent entails acquiring part of the Aspestahult 1:1 property in Eskilstuna Logistik Park, and constructing and automating the new facility. Catena's total investment is estimated at between SEK 3.7 billion and SEK 3.9 billion. If the planned schedule holds, the facility is expected to be brought into operation in 2023.

Johan Franzén stepped down from his position at Catena on 1 April 2020. The process of recruiting a successor has been initiated.

On 14 February, Catena signed an agreement to acquire the Magasinet 3 property, with a plot area of slightly more than 66,100 square metres. The property is situated adjacent to the 1,000,000 square-metre Gerstaberg 1:7 site that Catena intends to develop through its partnership holding in the company Södertuna utveckling AB. The property now being acquired encompasses building rights of approximately 10,000 square metres and a lettable area with tenants of approximately 21,000 square metres. The combined rental value amounts to approximately SEK 12 million. The acquisition is being conducted as a corporate transaction at a value of SEK 130 million. The site is being sold by Folkpolarna AB.

Due to ownership changes in Catena, with Kilen 134 Strängnäs AB, represented by Jan Persson, having reduced its shareholding, the Nomination Committee now has the following composition: Anders Nelson, appointed by Backahill Kil AB, Gustaf Hermelin, Chairman of the Board and appointed by SFU Sverige AB; Johannes Wingborg, appointed by Länsförsäkringar Fondförvaltning AB; Olof Nyström, appointed by

Fjärde AP-fonden (AP4 – new member of the Nomination Committee). The chairman of the Nomination Committee is Anders Nelson, while the Committee is convened by Chairman of the Board, Gustaf Hermelin. Combined, the four shareholders represented hold approximately 44 percent of the votes in Catena as of 29 February 2020.

In preparation for the Annual General Meeting on 29 April 2020, the Nomination Committee submitted its proposal regarding Chairman of the Board and other Board members. The Nomination Committee proposed re-election of Katarina Wallin, Tomas Andersson, Hélène Briggert and Magnus Swärdh and that Gustaf Hermelin be re-elected as the Chairman of the Board, with Caesar Åfors and Vesna Jovic being newly elected as Henry Klotz and Ingela Bendrot have declined re-election.

Given the altered circumstances in the market, Catena AB and Coop Logistik AB agreed on 3 April not to fulfil the letter of intent previously established between the parties. The letter of intent between Catena AB and Coop Logistik AB

included the acquisition of part of the Aspestahult 1:1 property in Eskilstuna and the new construction of an approximately 105,000 square-metre automated warehouse. With reference to the new conditions now affecting the market, the parties have agreed that the terms of the letter of intent no longer apply.

Catena has implemented changes in its management team. As of 1 May 2020, Catena's management team consists of the CEO, the CFO, the Head of Treasury, the Head of Business and Property Development and the Head of Business Support. The two new roles being introduced are the Head of Business and Property Development, responsible for regions, projects and business development, and the Head of Business Support, responsible for HR, communications and sustainability. In addition to CEO Benny Thögersen, the new management team will thus consist of Deputy CEO/CFO Sofie Bennsten, who will also become the Acting Head of Business Support, Head of Treasury Peter Andersson and Deputy CEO/Head of Business and Property Development Jörgen Eriksson. The company's regional managers will report to the Head of Business and Property Development in a clearer businessgenerating context with a strong focus on project development.

On 8 April, Catena signed an agreement with Sven-Olof Hagelin of the Tahe Gård farm in Taberg regarding the acquisition of an area of land in the Municipality of Jönköping. The plot of land in question, which covers approximately 190,000 square metres, is adjacent to Torsvik, one of Sweden's largest logistics sites, with a location that allows transport to several metropolitan regions within one day. The transaction will be implemented by consolidating the land with Catena's

existing Tahe 1:64 property and is conditional on detailed plan gaining legal force. Catena will gain access to the site when the detailed development plan has gained legal force.

Fredrik Renå stepped in as the new Regional Manager for Malmö on 1 May 2020, replacing Jörgen Eriksson, who stepped into a new role as Deputy CEO/Business and Property Manager.

At the end of May, Catena signed a 12-year lease with Seafrigo Nordic and will be investing SEK 147 million in a new 10,800 square-metre distribution centre, comprising facilities for both chilled and frozen goods and a smaller office space, with an estimated net operating surplus of SEK 9 million. Seafrigo is an international third-party logistics company that focuses on the handling and storage of food. The new property will have a storage capacity of 25,000 pallets, a larger food freezing facility and backup power guaranteeing cooling and operation even in the event of an extended power failure. The plant is certified in accordance with Miljöbyggnad Silver and a photovoltaic cell facility will be installed on the roof. Construction will commence in the summer of 2020 and Seafrigo plans to move in during the summer of 2021.

On 3 September 2020, Jonas Arvidsson took over as Catena's new Regional Manager, responsible for the Gothenburg and Jönköping regions. Jonas joins Catena from DHL Nordic where he was regional manager for logistics properties and responsible for analysis and development of existing properties, as well as for projects and new production. Prior to that, Jonas has held leading positions in which he has headed major logistics projects within DHL Supply Chain.

In September, Benny Thögersen announced that he will resign as CEO of Catena. He will remain in his role until a new CEO takes office, but not beyond 2021.

On 28 September, Catena signed an agreement to acquire the Åre 92 property, which is located in the Municipality of Borås, a key strategic logistics location for Nordic distribution. The property is situated on a plot of 120,000 square metres and has a lettable area of approximately 38,000 square metres. Preliminarily, the acquisition will be implemented on 1 February 2021 as a corporate transaction at a predetermined property value of SEK 272 million, prior to the deduction of deferred tax. Catena has signed a 15-year lease agreement with NELLY, with the estimated operating surplus amounting to approximately SEK 16.5 million. The newly-constructed and energy-efficient facility offers good opportunities for expansion, with the lease agreement including an option for an expansion of 13,000 square metres.

Significant events after the period

No significant events after the end of the period.

Key financial figures for the Group

Key figures 1, 2)					Definitions
	2020	2019	Rolling	2019
	Jan-Sep	Jan-Sep	12-month	Jan–Dec
Property-related Rental income, SEK M	937.5	885.1	1,235.3	1,182.9	Rental income according to Statement of comprehensive income
Net operating surplus, SEK M	753.1	681.9	974.0	902.8	Rental income less operating and maintenance expenses,
					property tax and property administration (including ground rent deductions in 2018).
Surplus ratio, %	80.3	77.0	78.8	76.3	Net operating surplus as a percentage of income from property.
Rental value, SEK M	1,354.1	1,271.0	1,354.1	1,264.8	Contractual rents on an annual basis plus a supplement for assessed market rents for vacant space.
Economic letting ratio, %	96.1	96.0	96.1	95.0	Contractual annual rents under leases valid at the end of the period/year as a percentage of rental value.
Loan-to-value ratio, %	56.0	56.5	56.0	54.0	Interest-bearing liabilities attributable to the properties as a percentage of the carrying amounts of the properties at the end of the period/year.
Lettable area, thousand sq. m.	1,912.8	1,828.7	1,912.8	1,842.7	Total area available for letting.
Financial
Profit from property management, SEK M	542.5	478.0	691.3	626.8	Pre-tax profit with reversal of changes in value.
Pre-tax profit, SEK M	1,017.9	1,061.5	1,478.9	1,522.5	Profit before tax in accordance with Statement of comprehensive income.
Profit for the period/year, SEK M	805.1	851.8	1,177.1	1,223.8	Profit for the period/year in accordance with Statement of comprehensive income
Total assets, SEK M		19,719.1 17,659.9 19,719.1 17,770.1
Return on equity, %	12.2	15.1	18.4	21.1	Profit for the period/year as a percentage of average equity.
Return on assets, %	6.4	7.8	8.6	10.2	Pre-tax profit plus financial expenses as a percentage of average total assets.
Interest-coverage ratio, multiple	4.0	4.2	3.9	4.1	Pre-tax profit before reversal of financial expenses and unreal ised changes in value in relation to financial expenses.
Average interest rate, %	2.4	2.6	2.4	2.6	Average interest on the loan portfolio with derivatives being taken into account as per the balance sheet date.
Interest maturity, years	3.1	2.4	3.1	2.3	Average weighted interest maturity on the loan portfolio including the effect of derivatives
Debt maturity, years	2.2	1.6	2.2	1.3	Weighted average debt maturity on the loan portfolio
Equity ratio, %	34.9	33.7	34.9	35.6	Equity including non-controlling interests as a percentage of total assets.
Equity ratio, excluding goodwill and lease assets, %	36.4	35.4	36.4	37.3	Equity including non-controlling interests as a percentage of total assets less goodwill and lease assets.
Share-related
Share price at end of period, SEK	397.50	323.00	397.50	413.50
Cash flow before change in working capital per share, SEK	14.37	12.50	18.12	16.25
Equity per share, SEK	182.46	157.89	182.46	167.59	Equity attributable to Parent Company shareholders in relation to the number of shares outstanding at the end of the period/year.
Profit from property management per share, SEK	14.39	12.68	18.34	16.63	Profit from property management in relation to the number of shares outstanding at the end of the period/year.
Earning per share, SEK	21.36	22.59	31.22	32.46	Profit for the period/year attributable to the Parent Company's shareholders in relation to the average number of shares outstanding.
Net asset value per share, EPRA NAV, SEK	223.34	194.07	223.34	202.87	Shareholders' equity with reversal of the fair value of interest rate derivatives and deferred taxes in the balance sheet less goodwill associated with the deferred tax, calculated per share.
Number of shares outstanding, millions	37.7	37.7	37.7	37.7	Number of shares on the balance sheet date
P/E ratio	13	12	13	13	Share price at end of period/year in relation to past 12 months' rolling profit.

1) For division into IFRS categories, alternative and other key figures, please refer to Catena's Annual Report for 2019, pages 136–137.

2) On remaining properties at the end of the period.

Accounting and valuation principles

Catena AB draws up its consolidated accounts in accordance with the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB), and also with interpretive statements from the International Financial Interpretations Committee (IFRIC), as approved by the European Commission for application in the EU.

The Parent Company applies the same accounting policies as the Group, with due consideration of the recommendations of the Swedish Council for Financial Reporting: RFR 2, Accounting for Legal Entities.

This interim report was drawn up in accordance with IAS 34, Interim Financial Reporting, for the Group and according to the Swedish Annual Accounts Act for the Parent Company. The accounting principles are unchanged compared with the annual accounts for the preceding year.

Risks and uncertainty factors

In order to draw up the accounts according to generally accepted accounting principles, the company management must make assessments and assumptions that affect the asset and liability items and the income and expense items

disclosed in the annual accounts, and also other information provided. Actual outcomes may diverge from these assessments. Catena's financial risks are described in Note 19 on pages 97–99 of the 2019 Annual Report and in the Corporate Governance Report on pages 129–133. In addition to the ongoing Coronavirus pandemic, which has been addressed in this quarterly report, no other significant changes have occurred.

The Board of Directors and the Chief Executive Officer certify that this report gives a true and fair view of the financial position and results and describes significant risks and uncertainties that the Group and the companies included in the Group face.

Helsingborg, 27 October 2020 Catena AB

Board of Directors

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

Catena is a listed property company that, through collaboration sustainably develops, owns and manages efficient logistics facilities. Its strategically located properties supply the Scandinavian metropolitan areas and are adapted for both current and future goods flows. The overall objective is to generate strong cash flow, enabling stable development and providing shareholders a favourable total return in the long term. Catena's shares are traded on NASDAQ Stockholm, Mid Cap.

Visiting address: Landskronavägen 23 SE-252 32 Helsingborg, Sweden

+46 (0)42 449 22 00

Stockholm Gasverksvägen 1 SE-611 35 Nyköping, Sweden Switchboard: +46 (0)42 449 22 00

Gothenburg/Jönköping Fibervägen 2 SE-435 33 Mölnlycke, Sweden Switchboard: +46 (0)42 449 22 00

Helsingborg Landskronavägen 23 SE-252 32 Helsingborg, Sweden Switchboard: +46 (0)42 449 22 00

Malmö Lagervägen 4 SE-232 37 Arlöv, Sweden Switchboard: +46 (0)42 449 22 00

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