Catena — Interim / Quarterly Report 2021

Jul 6, 2021

Interim Report January – June 2021

• Rental income rose by 8 percent to SEK 672.8 million (622.3).
• The net operating surplus increased by 7 percent to SEK 537.5 million (500.3).
• Profit from property management rose by 11 percent to SEK 399.2 million (358.5).
• Profit for the period increased to SEK 1,102.6 million (323.5), corresponding to earnings per share of SEK 27.87 (8.58), including changes in value of SEK 990.0 million (52.8).
• The long-term net asset value EPRA NRV per share rose to SEK 278.40 (207.79).

Significant events in the second quarter

• Catena has received a BBB- rating with a stable outlook from Nordic Credit Rating.
• Catena has established its own MTN programme and has issued green bonds for a total SEK 1.4 billion within this.

Q2

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
	2021, Apr–Jun	2020, Apr–Jun	2021, Jan–Jun	2020, Jan–Jun	Rolling 12-month	2020, Jan–Dec
Rental income, SEK M	343.4	307.2	672.8	622.3	1,314.4	1,263.9
Net operating surplus, SEK M	278.8	251.2	537.5	500.3	1,041.0	1,003.8
Surplus ratio, %	81.2	81.8	79.9	80.4	79.2	79.4
Profit from property management, SEK M	211.4	181.1	399.2	358.5	759.3	718.6
Profit for the period/year, SEK M	346.2	179.7	1,102.6	323.5	2,306.2	1,527.1
Earnings per share, SEK	8.40	4.77	27.87	8.58	59.69	40.51
Equity ratio, %	41.5	34.0	41.5	34.0	41.5	37.2
Economic letting ratio, %	94.9	95.9	94.9	95.9	94.9	96.2
Loan-to-value ratio, %*	45.1	54.7	45.1	54.7	45.1	50.1

Århus

Gothenburg

Copenhagen Catena's logistics positions

Kolding

Luleå

* Historical figures are adjusted based on the current definition.

Accepting responsibility over time is key

Catena shows strong earnings for the first half of 2021. The cash flow trend remains positive and profit from property management has increased by 11 percent.

With profit from property management of SEK 399 million, we can see an 11-percent increase compared with the preceding year. Our rental income increased by 8 percent and the operating surplus by 7 percent.

We receive feedback on an ongoing basis that what we deliver is appreciated. In May, we were awarded a credit rating of BBB- with stable prospects from credit rating agency Nordic Credit Rating (NCR). The substantial interest in our MTN programme and in the green framework that we recently launched further confirms that our business concept and approach are valued. Following an initial issue in June totalling SEK 1.4 billion, not only will our financing alternatives expand in the future, our sustainability ambitions will also be reflected by our now offering green bonds. Summing up our actions and earnings for the first half of 2021, we can assert that we are keeping pace with the plan we have set out and are delivering in a way that generates possibilities for the future.

Logistics is hot

For Catena, the investor interest and increasing demand being seen in the market are favourable. The market's return requirements are also having a positive effect on our existing portfolio. Looking at the first half of 2021, unrealised changes in the value of Catena's properties amounted to SEK 880 million – an effect of lower yield requirements, well-executed projects and positive leasing and property management efforts.

It is an unmistakeable fact that the logistics sector is hot right now, and for us, as owners of logistics properties, this causes us to further emphasise how important we consider our long-term approach, our stability and our in-depth knowledge in the area of logistics. The logistics network of the future will place entirely new demands on property owners in all regards, with building materials, construction methods, opportunities for sustainable transport, energy optimisation, surface efficiency, our capacity to cope with climate change, a favourable working environment and our capacity to contribute to additional circular flows, being just a few examples. Although we believe that logistics is the future, our tenants need never doubt that we stand by them, regardless of economic fluctuations, investor interest or pandemics. What we do must last over time – short-term solutions do not benefit tenants or development in general.

Land assets for the continued generation of value In the long-term perspective, land availability is absolutely central. A structured process and ongoing dialogues with local actors, partners and municipalities mean that Catena's poten-

Valuation-steered

Our operations are among those affected positively by the changes in consumption and behaviours brought by the Covid-19 pandemic. When it all started a year and a half ago, no one could predict exactly what would happen, although it quickly became clear that the pandemic would impose a considerable strain on society and on people. For this reason, we, like everyone else, are now relieved to finally see the light at the end of the tunnel. For us, proximity to our customers is important and, with eased restrictions, we can once again meet on site in our properties, which makes it easier for us to demonstrate our commitment to the issues with which our tenants struggle. At the same time, we see that it would be healthy for society and companies to also learn certain lessons from the pandemic when we finally emerge from it. In addition to the need for future crisis contingencies (which should also entail more warehouse properties), we have seen that value-driven organisations have shown their strength when there is turbulence in the outside world.

It is my conviction that Catena's capacity to continue delivering and exceeding customer and market expectations builds largely on the fact that we agree about what we stand for and on how we should work together.

Helsingborg, June 2021 Jörgen Eriksson, CEO

Income and profit

Covid-19

The corona virus and the Covid-19 disease it causes caught the world off-guard in 2020, impacting public health, as well as economies and financial markets. For Catena, while the corona virus has entailed stress in everyday life, it has also brought business opportunities.

Most of Catena's tenants have continued their operations more or less as previously. A large number have e-commerce operations and an estimated 1 million m2 of Catena's total portfolio is leased to customers providing essential services and who play an important role in securing functioning goods flows.

The customer base includes small number of tenants who have been more affected by Covid-19, primarily subcontractors to the restaurant and service sector, as well as event and activity operations.

During the period, Catena reached agreements to shift from quarterly to monthly payments for rental payments of about SEK 10.5 million. An additional SEK 2.8 million net in discounts related to Covid-19 have been provided, following government subsidies. All rent notifications subject to agreements have been paid as planned. Over the upcoming quarters, Catena expects continued liquidity relief of a corresponding scope.

Rental income

Rental income for the period increased by 8 percent to SEK 672.8 million (622.3), corresponding to SEK 661 per m2 (661). Taking non-recurring effects into account, rental income increased by 9 percent. In comparable portfolios, rental income increased by 0.5 percent compared with the preceding period. 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 slightly more than 75 percent of Catena's total 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 more than five years.

Duration of leases
Year of maturity	Number of contracts	Contractual annual rent, SEK M	Contractual annual rent, %
2021	97	21,117	1
2022	152	200,875	14
2023	65	126,727	9
2024	50	164,702	12
2025	40	178,101	13
2026	27	170,736	12
2027+	63	549,094	39
Total	494	1,411,352	100

Property expenses

Property expenses increased to SEK 135.3 million (122.0), corresponding to SEK 133 per m2 (131). Planned maintenance has to some extent been postponed due to tenants having limited access to premises to limit the spread of Covid-19.

There are seasonal variations in the operation and maintenance of properties. Winters with much cold and snow entail higher costs for heating and snow removal. A hot summer can mean increased expenses for cooling. These variations, which 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 2021 was colder than normal and high electricity prices have also affected profit.

Financial expenses

Financial expenses, excluding expenses for lease assets, amounted to SEK 120.5 million (116.8) for the period.

Profit

Profit from property management during the period rose by SEK 40.7 million to SEK 399.2 million compared with the

preceding year – an increase of 11 percent. The primary reason for the improved profit from property management is an increased operating surplus.

Profit for the period amounted to SEK 1,102.6 million, which was SEK 779.1 million higher than for the preceding year. The unrealised changes in value of properties amounted to SEK 879.9 million (76.7). The change in the value of derivatives was SEK 110.1 million (negative 23.9).

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

Related parties

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

Operating surplus, regions
SEK M	2021, Apr– Jun	2020, Apr– Jun	2021, Jan– Jun	2020, Jan– Jun	Rolling 12-month	2020, Jan– Dec
Gothenburg	36.6	36.1	67.4	69.6	137.8	140.0
Helsingborg	51.4	42.9	102.9	82.7	191.1	170.9
Jönköping	20.5	20.6	41.2	38.0	80.0	76.8
Malmö	53.8	39.2	100.0	76.1	178.6	154.7
Stockholm	116.5	112.4	226.0	233.9	453.5	461.4
Total	278.8	251.2	537.5	500.3	1,041.0 1,003.8

	Rental income, regions
		2021, Apr–Jun		2020, Apr–Jun		2021, Jan–Jun		2020, Jan–Jun	Rolling 12-month		2020, Jan–Dec
		Of which,		Of which,		Of which,		Of which,		Of which,		Of which,
SEK M	Rental income	re invoiced*	Rental income	re invoiced*	Rental income	re invoiced*	Rental income	re invoiced*	Rental income	re invoiced*	Rental income	re invoiced*
Gothenburg	43.9	2.5	41.2	1.9	81.7	4.6	80.9	4.3	166.1	9.3	165.3	9.0
Helsingborg	64.7	4.1	54.6	3.8	130.6	8.4	108.1	7.5	246.0	15.5	223.5	14.6
Jönköping	28.0	3.3	27.5	3.7	55.8	6.7	52.8	6.9	109.9	12.5	106.9	12.7
Malmö	70.9	10.8	52.4	9.4	133.9	21.4	103.9	19.1	247.1	42.1	217.1	39.8
Stockholm	135.9	9.6	131.5	10.7	270.8	20.0	276.6	21.4	545.3	41.7	551.1	43.1
Total	343.4	30.3	307.2	29.5	672.8	61.1	622.3	59.2	1,314.4		121.1 1,263.9	119.2

* Of which, re-invoiced expenses.

Ten largest tenants, contracted rent

Statement of comprehensive income
SEK M	2021, Apr–Jun	2020, Apr–Jun	2021, Jan–Jun	2020, Jan–Jun	Rolling 12-month	2020, Jan–Dec
Rental income	343.4	307.2	672.8	622.3	1,314.4	1,263.9
Property expenses	-64.6	-56.0	-135.3	-122.0	-273.4	-260.1
Net operating surplus	278.8	251.2	537.5	500.3	1,041.0	1,003.8
Central administration	-9.2	-8.3	-17.5	-17.0	-35.7	-35.2
Other operating income	0.3	0.3	0.5	0.6	3.6	3.7
Other operating expenses	-0.1	–	-0.1	-1.5	-0.6	-2.0
Interest in profits from associated companies	-1.0	-1.2	-1.4	-3.5	-2.3	-4.4
Financial income	5.1	0.3	5.6	1.3	6.4	2.1
Financial expenses	-60.1	-58.8	-120.5	-116.8	-243.2	-239.5
Financial expenses for right-of-use assets	-2.4	-2.4	-4.9	-4.9	-9.9	-9.9
Profit from property management	211.4	181.1	399.2	358.5	759.3	718.6
Realised changes in value of investment properties	–	–	–	–	8.0	8.0
Unrealised changes in value of investment properties	200.0	65.8	879.9	76.7	1,962.0	1,158.8
Changes in values of derivatives	24.9	-18.4	110.1	-23.9	172.1	38.1
Profit before tax	436.3	228.5	1,389.2	411.3	2,901.4	1,923.5
Tax for the period/year	-90.1	-48.8	-286.6	-87.8	-595.2	-396.4
Profit for the year	346.2	179.7	1,102.6	323.5	2,306.2	1,527.1
Other comprehensive income
Translation difference	-12.7	-14.2	3.6	-0.7	-5.4	-9.7
Comprehensive income for the period/year	333.5	165.5	1,106.2	322.8	2,300.8	1,517.4
Comprehensive income for the period/year distributed among the Parent Company's shareholders	333.5	165.5	1,106.2	322.8	2,300.8	1,517.4
Key share data
Shareholders' equity, SEK per share	234.26	169.66	234.26	169.66	234.26	201.34
Long-term net asset value EPRA NRV, per share, SEK	278.40	207.79	278.40	207.79	278.40	245.08
Profit for the period/year, SEK per share1)	8.40	4.77	27.87	8.58	59.69	40.51
Number of shares outstanding, millions	41.2	37.7	41.2	37.7	41.2	37.7

1) Prior to and after dilution

Rolling 12-month

Quarter Rolling 12-month

Profit from property management
Q	R12
SEK M 400	SEK M 1,600

Quarter Rolling 12-month

Financial position

Cash flow
SEK M	2021, Jan–Jun	2020, Jan–Jun	2020, Jan–Dec
Profit before tax	1,389.2	411.3	1,923.5
Adjustments for
non-cash items	-988.0	-47.0	-1,197.0
Tax paid	-15.2	-5.8	-13.8
Cash flow before changes in working capital	386.0	358.5	712.7
Change in operating receivables	-26.3	-35.6	-13.2
Change in operating liabilities	54.4	-119.3	44.8
Cash flow from operating activities	414.1	203.6	744.3
Acquisition of assets via subsidiaries	-366.5	-142.3	-172.4
Investments in investment properties	-468.1	-570.8	-969.1
Divestment of investment properties	–	–	157.0
Acquisitions of property, plant and equipment	-1.5	–	-0.4
Disposals of property, plant and equipment	–	–	0.6
Change in financial assets	-81.2	-15.8	-16.6
Cash flow from investment operations	-917.3	-728.9	-1,000.9
New share issue	1,070.5	–	–
Change in loans	-187.1	804.3	781.7
Dividend paid	-154.6	-245.0	-245.0
Cash flow from financing operations	728.8	559.3	536.7
Cash flow for the period	225.6	34.0	280.1
Opening cash and cash equivalents	411.1	131.2	131.2
Exchange rate difference in cash and cash equivalents	0.1	–	-0.2
Closing cash and cash equivalents	636.8	165.2	411.1

Statement of financial position
	2021,	2020,	2020,
SEK M	30 Jun	30 Jun	31 Dec
Assets
Fixed assets
Goodwill	503.0	503.0	503.0
Investment properties	21,174.1	17,222.5	18,612.4
Tangible fixed assets	2.6	2.3	1.5
Right-of-use assets	334.5	334.5	334.5
Financial non-current assets	173.4	172.6	172.1
Deferred tax assets	55.6	90.1	75.0
Current assets
Current receivables	419.0	307.5	289.0
Cash and cash equivalents	636.8	165.2	411.1
Total assets	23,299.0	18,797.7	20,398.6
Equity and liabilities
Equity attributable to Parent Company shareholders	9,657.9	6,395.8	7,590.4
Non-current liabilities
Interest-bearing liabilities	8,790.7	7,371.0	6,090.4
Deferred tax liability	2,145.5	1,625.9	1,884.0
Lease liability	332.0	332.0	332.0
Other non-current liabilities	237.5	408.6	347.4
Current liabilities
Interest-bearing liabilities	1,402.0	2,220.5	3,644.6
Other current liabilities	733.4	443.9	509.8
Total equity and liabilities	23,299.0	18,797.7	20,398.6

Cash flow before change in working capital

Q	R12
SEK M	SEK M
400	1,600

Loan-to-value ratio

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

Cash flow before change		Loan-to-value ratio		Change in equity
in working capital Q	R12			SEK M	2021, 30 Jun	2020, 30 Jun	2020, 31 Dec
SEK M	SEK M	SEK M	%	Opening balance	7,590.4	6,318.0	6,318.0
	1,600	22,000	100	Dividend to shareholders	-309.2	-245.0	-245.0
		16,500	75	New share issue	1,270.5	–	–
	800	11,000	50	Comprehensive income for the period/ year attributable to Parent Company shareholders	1,106.2	322.8	1,517.4
		5,500	25	Closing balance	9,657.9	6,395.8	7,590.4
				Attributable to:
0 Q3 Q4 Q1 Q2 Q3 Q4	0 Q1	0 -17 -18 -19 -20 -21	0	Parent Company's shareholders	9,657.9	6,395.8	7,590.4

The property portfolio

Property portfolio
SEK M	Fair amount	Number of properties
Property portfolio at beginning of year	18,612.4	113
Acquisitions*	1,224.7	10
Investments in existing properties	445.6
Translation difference	11.5
Unrealised changes in value	879.9
Total investment properties	21,174.1	123

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

Changes in the property portfolio

Over the period, Catena acquired ten properties, five of which are situated in Denmark and five in Sweden, with a combined value of SEK 1,224.7 million.

In addition, investments have been made in new construction, remodelling and extensions at existing properties for SEK 445.6 million. The largest investment in existing properties during the period occurred at Åstorp, outside Helsingborg, where Catena has constructed a 10,800 m2 warehouse for chilled and frozen goods, where the tenant, Seafrigo Nordic, recently moved in.

In Morgongåva outside Uppsala, Catena is building a 38,000 m2 logistics warehouse, with Babyland as a tenant. The tenant is expected to move in during the first quarter of 2022.

At the Lagret 4 property in Nässjö, an extension of 6,000 m2 has recently been completed for Höglands Logistik.

Major tenant adjustments have also been made to the Frukthallen 3 property in southern Stockholm and to the Mappen 3 property in Linköping, among others.

Property valuation

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 period, approximately SEK 15.5 billion of the property portfolio was valued externally. The external valuations Catena obtains to assure the accuracy of its internal valuations show a decrease in the market's yield requirements.

Since all property valuations contain assessment factors with varying degrees of uncertainty, normally, a specific uncertainty interval is stated for the estimated values, this is estimated at +/- 10 percent.

During the quarter, unrealised changes in value of Catena's properties have arisen as a result of a lower yield requirement, well-executed projects, good leasing work and property management and amounted to SEK 879.9 million over the period. This corresponds to 4.3 percent of the value before adjustment.

One of the parameters that significantly impact the value of a property is the yield requirement and its development. A change of +/-1 percent in the parameters below impacts the estimated fair value.

Sensitivity analysis
		Impact on value, SEK M	Loan-to-value ratio, %
Yield requirements	+1%	-3,384	53.7
	-1%	4,411	37.3
Assumed annual rent
development	+1%	859	43.4
	-1%	-945	47.2

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 pages 103-104 of Catena's Annual Report for 2020.

Properties by region
Regions	Number of properties	Lettable area, thousand m2	Fair value, SEK M	Rental value, SEK M	Economic letting ratio, %	Contractual annual rent, SEK M	Surplus ratio, %
Gothenburg	18	297.1	2,876.0	208.7	88	183.2	82
Helsingborg	24	450.0	4,123.5	273.9	97	265.3	79
Jönköping	12	228.2	1,382.7	129.2	96	123.9	74
Malmö	24	345.8	4,311.0	291.2	98	284.8	75
Stockholm	45	779.5	8,480.9	584.7	95	554.2	83
Total	123	2,100.6	21,174.1	1,487.7	95	1,411.4	80

Property acquisition

Property designation	Transfer date	Region	Municipality	Space, m2	Property value, SEK M *	Rental income/ year, SEK M
Åre 92	1 Feb 2021	Gothenburg	Borås	38,293	272.0	17.4
Morgongåva 15:33	1 Mar 2021	Stockholm	Heby	land	31.6	0.0
Hammerholmen 47–49	1 Mar 2021	Malmö	Hvidovre, DK	16,489	218.0	11.5
Kokbjerg 15	1 Mar 2021	Malmö	Kolding, DK	15,327	201.1	10.7
Norddigesvej 3	1 Mar 2021	Malmö	Risskov, DK	4,497	42.8	2.7
Bavnevej 13	1 Mar 2021	Malmö	Vamdrup, DK	26,752	192.9	10.5
Kokmose 2–6	1 Mar 2021	Malmö	Kolding, DK	10,686	78.5	4.8
Hevea 3	1 Mar 2021	Gothenburg	Borås	19,519	75.7	7.4
Björröd 1:208	12 Apr 2021	Gothenburg	Härryda	7,550	79.0	4.9
Kärra 1:9	20 Apr 2021	Helsingborg	Ängelholm	land	21.4	0.0
Total				139,113	1,213.0	69.9

* Acquisition of Danish properties at a preliminary exchange rate.

Sustainable properties

Catena works to create sustainable properties by considering the entire life cycle of the building. Implementing energy efficiency projects and environmental certifications, as well as tightening requirements on the materials used in projects, safeguards energy-efficient operation of Catena's buildings while maintaining a healthy indoor environment. The operations endeavour actively to increase their knowledge on the emissions incurred during construction projects and on solutions to reduce these.

All of Catena's new buildings meet Miljöbyggnad Silver environmental certification as a minimum and, during 2021, an additional five buildings gained Miljöbyggnad Silver certification. A total of 209,700 m2 of Catena's portfolio has been certified, corresponding to 10 percent of the total lettable area. The certification process is in progress for another ten buildings with a total area of 194,400 m2.

During the second quarter of 2021, two new photovoltaic systems were installed and put into operation. Along with the facilities already installed on Catena's roofs, these are estimated to achieve an annual output of approximately 4,700 MWh.

Regional Manager, Gothenburg and Jönköping Jonas Arvidsson, phone +46 (0)73-070 22 60 jonas.arvidsson@catenafastigheter.se

Regional Manager, Helsingborg Göran Jönsson, phone +46 (0)42-449 22 66 goran.jonsson@catenafastigheter.se

Regional Manager, Malmö Fredrik Renå, phone +46 (0)72-743 45 44 fredrik.rena@catenafastigheter.se

Regional Manager, Stockholm Tobias Karlsson, phone +46 (0)73-070 22 36 tobias.karlsson@catenafastigheter.se

Projects

Project portfolio

Catena has the ambitious objective to grow by investing in projects, partly by refining the existing properties, but above all by developing the company's potential land reserves of approximately 5 million m2. On the balance sheet date, the project portfolio included remaining investments of SEK 374 million, including major projects, new construction and tenant adaptations to existing properties alike.

Logistics Position Sunnanå

At Logistics Position Sunnanå, outside Malmö, Catena has, over the past few years, constructed 81,000 m2 of warehouse and logistics space, distributed between six buildings. The logistics position is located at the heart of the Greater Copenhagen area with its 4.4 million inhabitants and only some 30

minutes from central Copenhagen and Copenhagen Airport, and offers favourable infrastructure for transporting goods north to Gothenburg and Oslo, to the Mälardalen region and Stockholm. The area is fully leased to DHL, Chefs Culinar and Svensk Cater, among others. In recent years, Catena has worked to have detailed development planning (zoning) completed for more land, in order to be able to continue its expansion of the logistics position. Catena recently completed these efforts, resulting in detailed development planning for the area making it possible for the company to construct 55,000 m2 of new sustainable logistics facilities. On 22,000 m2 of the building rights, it is also possible to construct to a ceiling height of a full 40 metres, which is optimal for a fully automated warehouse.

Major projects during the quarter 1

Project	Property	Municipality	Lettable space, m2	Assessed net operating surplus,SEK M	Estimated investment, SEK M	Degree of completion by Q2 2021, SEK M	Letting ratio on the balance sheet date, %	Completed 2
Major new con struction and extension projects in progress
Seafrigo Nordic	Part of Broby 57:1	Åstorp	10,800	9.0	147	147	100	1 Jul 2021
Morgongåva	Morgongåva 15:33	Heby	38,000	17.8	300	128	100	Q1 2022
Kyl och Frys expressen Nord	Storheden 2:1	Luleå	4,500	4.9	75	33	100	Q4 2021
Total, ongoing major projects			53,300	31.7	522	308

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

Extension in Jönköping

In Jönköping, with its almost perfect location between the three metropolitan regions in Sweden, Catena owns warehouse and logistics properties totalling 42,000 m2.

One of Catena's properties, Tahe 1:64, is located on Målövägen adjacent to the E6 motorway just south of Jönköping. The property has recently been expanded by 12,600 m2, as the largest tenant, Procurator, needed more space. It is now time to expand Procurator's 39,000-m2 premises with an additional extension of 1,300 m2, as the company again needs to expand in the area. Catena is working here to have detailed development planning completed for additional land to be able to construct new climate-smart warehousing and logistics facilities.

Development of the Mappen neighbourhood in Linköping

In the Mappen neighbourhood in Linköping, Catena owns three buildings with a total of slightly more than 57,000 m2 of space. One of the buildings was constructed by Catena in 2018 and the other two buildings have undergone numerous renovations in recent years to adapt to customers' requirements for modern logistics properties.

The focus right now is on Mappen 3 (the yellow building in the picture). In that building, tenant adaptations affecting slightly more than 10,000 m2 are currently in progress for tenants Tage Lindblom, Bring and Dagab.

Catena has now completed an investment in a geo-energy plant at the site. The investment connects the heating systems of the three buildings, making them self-sufficient with regard to heat. This is due to the fact that the heat created by the

freezers in one building is stored in a geo-energy storage facility consisting of 50 boreholes to a depth of 300 metres and can be used when the buildings need to be heated. The system can also collect cooling from the holes on a hot summer day when the buildings need to be cooled. Such systems have also been installed at two other properties in Catena's portfolio, reducing both costs and climate impact.

This now also includes the installation of the block's second photovoltaic system and, at the same time, the building's energy system is also being prepared to be able to cope with increased power requirements for charging cars and lorries, for example.

Catena also holds building rights in the area and efforts to lease the facilities are in full swing. The Company hopes to be able to commence construction in the near future.

Sustainability

Catena's sustainability activities

Sustainability is a prioritised area and a strategic horizon from which Catena operates. The sustainability work is based on three focus areas: Sustainable logistics and community development, Sustainable properties, and Responsible and attractive employers. What Catena delivers should be sustainable over time. The Company's objectives state, for example, that all newly built properties must be environmentally certified, energy consumption must be reduced and the Company shall work to enhance equality and diversity. Catena's sustainability work is conducted within the framework of Agenda 2030, the Company is a member of the UN Global Compact and the Company's climate goals are approved by SBTi.

Prominent efforts during the quarter

The EU taxonomy is a tool for achieving the EU's sustainability goals. Investments that are environmentally sustainable are classified in the taxonomy according to six defined environmental goals, two of which will enter into force as early as 1 January 2022. The purpose is to provide common guidelines as to which investments may be referred to as "green" and for capital to be managed in a more sustainable manner. The criteria in the taxonomy are objective, scientifically substantiated and reflect the fulfilment of the sustainability goals set out by the EU Member States. Several sectors included in the taxonomy are relevant to Catena, including energy, water, sewage, waste management, transport and construction of buildings. In 2021, Catena will commence efforts to report Capex (investments) and Opex (operating expenses) as shares of sales deriving from products or services considered environmentally sustainable in accordance with the taxonomy. A large part of the operations are affected and must be

assessed and reported as either sustainable or unsustainable in future reports.

On 19 May, the Riksdag (Swedish Parliament) decided to raise the limit for exemption from energy tax for self-produced solar cell energy from 255 kW to 500 kW. Most of Catena's facilities are at the 255 kW level. It is now possible to double the output of both new and existing facilities without this becoming taxable. During the second quarter, Catena installed two new photovoltaic systems in Helsingborg for a total 509 kW and now has an estimated annual production of 4,700 MWh, corresponding to the heating needs of 944 singlefamily homes where district heating or a heat source other than electricity is used.

Catena has launched a green financing framework making it possible to issue green bonds within the newly raised MTN programme. The framework has been reviewed by the independent climate and environmental research institute Cicero, which has allocated Catena a rating of Cicero Medium Green. In collaboration, a requirements specification has been produced, in accordance with which investments/properties may qualify.

Energy intensity kWh/m2 2021, Jan–May 2020, Jan–Dec 2019, Jan–Dec 2018, Jan–Dec 2017, Jan–Dec Electricity * 30 70 75 78 79 Fuel, normal year-corrected 6 10 31 46 57 District heating, normal year corrected 27 44 43 44 42 Total energy intensity 51 107 114 121 122

* Electricity consumption includes both electricity consumed in our properties and electricity consumed in our own business operations.

Greenhouse gas emissions (market-based)
tonnes CO2e	2021, Jan–May	2020, Jan–Dec	2019, Jan–Dec	2018, Jan–Dec
Scope 1	46	67	637	1,195
Scope 2	635	1,201	1,199	1,163
Scope 3	2,667	7,233	7,168	6,411
Total emis sions	3,348	8,501	9,004	8,769

The table only shows emissions that have arisen in connection with energy consumption at Catena's properties.

Head of Environment and Certification Anna Wallander, phone +46 (0)72-510 03 00 anna.wallander@catenafastigheter.se

Energy intensity, 2017-2020

LOA where Catena lacks energy data LOA where Catena has energy data Energy use per m2

Other sustainability key figures

	2021, 30 Jun	2020, 31 Dec	2019, 31 Dec
Photovoltaic cell facilities installed	15	13	6
Peak power of photovoltaic cells (kWp)	5,134	4,335	2,771
Miljöbyggnad certification, m2		209,706 120,500	0
Miljöbyggnad certification,
% of total area	10	6	0

Sustainability Manager Tove Palm, phone +46 (0)73-070 22 94 tove.palm@catenafastigheter.se

Market outlook

While the economic recovery globally and in Sweden continues in pace with the ongoing vaccination programmes, uncertainty remains regarding the speed of the recovery and which countries and sectors are recovering best. The pandemic has changed human habits and highlighted the key role of logistics in society. The transformation of the supply chain and its effects on logistics properties have followed, and will continue to follow, a highly interesting developmental path. The growing e-commerce area, which currently accounts for approximately 15 percent of total retail trade in Sweden, is exerting pressure on demand for appropriate premises close to endconsumers. Closest to city centres, there are usually older stocks of logistics properties failing to meet the requirements of customers, authorities and society in terms of functionality and efficiency. Digital trade has helped change what traditional logistics properties look like. The properties have generally become larger and have progressed from properties for storing products to serving as facilities for product flows. Requirements in terms of favourable infrastructure are also more crucial than ever. At the same time, we see that the supply of appropriately zoned industrial land in favourable locations is limited. To meet the considerable demand from customers, an innovative approach will be required in interaction with political initiatives. Overall, Catena feels that demand will exceed the supply of newly developed premises for a long time to come. Growth in the segment for refrigerated goods and parcel deliveries appears particularly favourable looking ahead. During the first quarter of this year, e-commerce for food products grew by more than 120 percent (PostNord, E-barometern). The combination of a limited supply of land with planning approval and modern logistics premises serves to challenge this growth rate, while also providing scope for higher rental levels in the long term.

The economic outlook looks brighter than earlier in the year and most macroeconomic indicators are pointing upwards. In line with the ECB, the Riksbank is expected to leave the repo rate unchanged at zero percent until 2023, and it intends to continue conducting support purchases of securities within the framework of its SEK 700 billion action programme. The Swedish state is under-leveraged from an international perspective and therefore has plenty of financial muscle to support a possibly deteriorating economy. During the second

quarter, the major topic of conversation was about inflation, which, driven by bottlenecks on the supply side and surplus savings during the pandemic, began to move upwards. It is unclear whether the rise in prices is temporary. In the capital markets, activity was at a high level over the same period and the supply of capital has remained favourable. The ten-year government bond yield, which rose by about 0.3 percent during the year, has currently stabilised at around 0.35 percent. Overall, although Catena expects continued stable and favourable conditions in the credit market, it remains alert to unforeseen events.

Quarterly overview
	2021, Q2	2021, Q1	2020, Q4	2020, Q3	2020, Q2	2020, Q1	2019, Q4	2019, Q3
Rental income, SEK M	343.4	329.4	326.4	315.2	307.2	315.1	297.8	300.1
Net operating surplus, SEK M	278.8	258.7	250.7	252.8	251.2	249.1	220.9	226.8
Surplus ratio, %	81.2	78.5	76.8	80.2	81.8	79.1	74.2	75.6
Economic letting ratio, %	94.9	93.9	96.2	96.1	95.9	95.4	95.0	96.0
Profit from property management, SEK M	211.4	187.8	176.1	184.0	181.1	177.4	148.8	160.1
Profit for the period, SEK M	346.2	756.4	722.0	481.6	179.7	143.8	372.0	344.3
Return on equity, %	3.6	8.8	10.0	7.3	2.8	2.3	6.1	6.0
Equity ratio, %	41.5	41.1	37.2	34.9	34.0	35.1	35.6	33.7
Share price at end of period, SEK	458.20	385.00	385.00	397.50	367.00	289.50	413.50	323.00
Cash flow before change in working capital per share, SEK	5.16	4.57	4.53	4.86	4.84	4.67	3.75	4.29
Earnings per share, SEK	8.40	19.95	19.15	12.77	4.77	3.81	9.87	9.13
Long-term net asset value EPRA NRV, per share, SEK	278.40	276.29	245.08	223.34	207.79	208.16	202.87	194.07

Financing

	Capital and interest maturity
Debt maturity				Interest maturity, including derivatives
Year	SEK M	Share, %	Interest, including margin, %	SEK M	Share, %	Interest, including margin, %*
0–1	1,344.8	13.2	1.1	4,167.0	40.9	2.0
1–2	3,284.0	32.2	1.1	408.0	4.0	2.8
2–3	3,086.0	30.3	1.4	500.0	4.9	3.0
3–4	1,776.0	17.4	1.4	1,657.2	16.3	2.6
4–5	0.0	0.0	0.0	1,127.6	11.0	2.5
5–	701.9	6.9	1.0	2,332.9	22.9	2.2
Total	10,192.7	100.0	1.2	10,192.7	100.0	2.3

* The margin is evenly distributed across the maturity structure of variable rate loans as an effect of the swap portfolio.

Developing, owning and managing logistics properties requires good access to capital. The combination of well-diversified financing with an attractive property portfolio generating strong cash flow makes room for continued controlled growth under favourable conditions. Catena makes ongoing efforts to secure appropriate financing, as well as a risk and return profile that are governed by a financial policy approved annually by the Board of Directors.

Governance

Catena manages its financial position by following up selected key figures that in various ways contribute to managing financial risks such as interest rate risk, refinancing risk and liquidity risk. Read more about financial risks on pages 49-51 and in note 20 in Catena's 2020 Annual Report.

Interest-bearing liabilities and loan-to-value ratio

During the period, Catena negotiated/renegotiated financing agreements with a total framework of approximately SEK 4,113.7 million. During the second quarter, Catena AB received a BBB- rating with a stable outlook from the Nordic Credit Rating (NCR), which corresponds to Investment grade.

At the end of the period, interest-bearing liabilities amounted to SEK 10,192.7 million (9,591.5), of which 14 percent is characterised as green financing in accordance with Catena's recently-established green financing framework. Catena's goal is to achieve a 50-percent share of green funding by

1. The interest-bearing liabilities, less cash and cash equivalents, amounted to 45 percent (55) of the value of the properties, with the secured interest-bearing liabilities amounting to 37 percent of the value of the properties. At the time, cash and cash equivalents amounted to SEK 636.8 million and confirmed and unutilised credit commitments from banks amounted to SEK 2.1 billion. Combined, the interestbearing liabilities' weighted average debt maturity was 3.3 years (2.4) and, over the next few years, approximately 13 percent of the portfolio will be refinanced under current agreements.

Financial position – a compilation

	2021, 30 Jun	Finance policy	2021, 31 March
Interest-bearing liabilities, SEK M	10,192.7		10,524.6
Proportion green financing, %	13.7	>50*	0.0
Equity ratio, %	41.5	>40	41.1
Interest-coverage ratio, multiple	4.3	>2.0	4.1
Average debt maturity, years	3.3	>2.5	2.2
Number of credit providers	11	>7	10
Loan-to-value ratio, %	45.1	<50	49.7
Average interest maturity, year	3.0		2.7
Interest rate hedging ratio, %	71.3		60.7
Average interest rate, %	2.3		2.3
Cash and unutilised credit, SEK M	2,736.8		1,640.0

* Target for 2025.

Capital structure

Bank financing

Traditional and bilateral credit agreements with banks constitute Catena's main source of financing, and on the balance sheet date these were distributed between 7 (7) different banks.

Bond financing

During the second quarter, Catena established a senior unsecured MTN programme with a total framework of SEK 5 billion and issued its first bonds for a total SEK 1.4 billion. The issue was divided between an FRN loan of SEK 950 million and a fixed-rate loan of SEK 450 million. The bonds are classified as green and are listed on the Stockholm Nasdaq exchange.

Catena also has an indirect opportunity to borrow secured capital market financing through Svensk FastighetsFinansiering (SFF), which is owned equally by Catena, Diös, Fabege, Platzer and Wihlborgs. On the balance sheet date, the outstanding volume was SEK 1,605 million. The MTN programme, under SFF, amounts in its entirety to SEK 12 billion. SFF holds a credit rating equivalent to BBB+ from NCR. More about SFF can be found at 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 920 million, which is within the scope of the unutilised lines of credit from banks.

Danish mortgage bonds

Through the Danish mortgage credit system, Catena had, on the balance sheet date, borrowed SEK 800.5 million (262.0), primarily as loans for the Danish portfolio, and corresponding to 8 percent of Catena's total interest-bearing liabilities.

Head of Treasury Peter Andersson, Tel. +46 (0)42-449 22 44 peter.andersson@catenafastigheter.se

Financial Controller / IR David Silvesjö, telephone +46 (0)42–449 22 22 david.silvesjo@catenafastigheter.se

Interest expenses and sensitivity

On the balance sheet date, the average interest rate, including the cost of derivatives and unutilised lines of credit, was 2.3 percent (2.4). The lower average interest rate is mainly due to lower borrowing costs.

If the market interest rate defined as Stibor 3-month increases by one percentage point, all else being equal, the interest expenses increase by around SEK 17 million. If the market interest rate falls by one percentage point, the interest expenses increases by about SEK 30 million. An explanation of the effect of the sensitivity is in part that the majority of the Group's loans are encumbered by interest-rate 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.

Interest-rate risk management

Interest expenses are a significant part of Catena's earnings. They are mainly affected by changes in the market interest rate, but also by changing rules and conditions in the credit market, which can, in turn, alter credit margins.

To limit the Group's interest-rate risk, Catena mainly uses fixed-rate loans and interest-rate derivatives to spread fixedrate maturities over time. On the balance sheet date, the carrying amount of the interest rate derivatives was a negative SEK 233.1 million (405.0) and the change in value was SEK 110.1 million (negative 23.9). The change in value of the derivatives does not affect cash flow and, on reaching maturity, the value of derivatives is always zero. Fixed-rate loans are valued at nominal value.

At the end of the period, fixed-rate loans, excluding commercial papers, amounted to SEK 1,559.8 million (698.9) and the nominal volume of outstanding interest rate swaps purchased amounted to SEK 5,711.1 million (5,718.1). Combined, they comprised an interest-rate hedge of 71 percent (64) of the total loan portfolio. At the end of the period, about 41 percent (36) of the portfolio had an interest maturity of less than one year and the average interest maturity for the entire loan portfolio, including derivatives, was 3.0 years (3.4).

Important events

Catena acquires additional land in Morgongåva – investing SEK 300 million in new construction for Babyland 14 Jan 2021

Catena is investing an additional SEK 300 million in the Morgongåva business park after today signing an agreement with Morgongåva Företagspark regarding new construction of an additional e-commerce facility in the area.

Catena expands further in Denmark and issues new shares 22 Feb 2021

Catena is acquiring six logistics properties for a combined property value of approximately SEK 815 million following deductions for deferred taxes. The purchase consideration will be paid in part through newly issued shares in Catena.

Catena gains possession of property portfolio and implements private placement

1 Mar 2021

In accordance with the company's previous press release of 22 February 2021, Catena has now gained possession of six logistics properties valued at SEK 815 million with of deferred taxes having been deducted. Under the authorisation given to the Board of Directors by the 2020 Annual General Meeting, 527,911 new shares in Catena will now be issued.

Nomination Committee's proposal to the Board of Directors of Catena AB

11 Mar 2021

In preparation for the Annual General Meeting of Catena AB (publ) on 29 April 2021, the Company's Nomination Committee submits its proposal regarding Chairman of the Board and other Board members.

Catena announces an increase in the number of shares and votes

31 Mar 2021

In accordance with previously published information, the number of shares and votes in Catena AB (publ) has increased.

Catena announces its intention to implement a private placement

31 Mar 2021

Catena AB (publ) intends to carry out a new share issue of up to 3 million shares (the "New Issue") aimed at Swedish and international institutional investors through an accelerated book building procedure, and has engaged ABG Sundal Collier and Kempen & Co as Joint Bookrunners in connection with the New Issue.

Catena is implementing a private placement, raising an additional SEK 1,080 million

31 Mar 2021

As authorised by the Annual General Meeting on 29 April 2020, the Board of Directors of Catena AB (publ) has decided to implement a cash private placement of 3,000,000 shares at a subscription price of SEK 360 per share.

Catena updates its financial targets 9 Apr 2021

Catena's Board of Directors had decided to update four of the targets in the Company's Financial Policy. The new, updated targets state

that the equity ratio should amount to at least 40 percent, the interest coverage ratio should amount to a multiple of at least 2, average debt maturity should be at least 2.5 years, and the net loan-to-value ratio should be at most 50 percent.

Catena announces an increase in the number of shares and votes

30 Apr 2021

In accordance with previously published information, the number of shares and votes in Catena AB (publ) has increased. This increase is being implemented in light of the private placement approved by the Board of Directors on 31 March 2021 and authorised by the Annual General Meeting. The increase in share capital as a consequence of the new share issue was registered by the Swedish Companies Registration Office on 6 April 2021. The total number of shares in Catena has increased by 3,000,000 shares and votes. On 30 March 2021, Catena's registered share capital amounted to SEK 181,397,761.60 distributed between 41,226,764 shares.

All shares are of the same class of shares and each share entitles the holder to one (1) vote at Catena's General Meetings.

Catena secures BBB- credit rating from Nordic Credit Rating 3 May 2021

Catena has been awarded an "investment grade" credit rating of BBB- with stable prospects from credit rating agency Nordic Credit Rating (NCR). This is referred to as investment grade credit rating, with, for example, the company's stability, combined with its financial targets and the issue now completed having been key to the allocated rating.

Catena AB publishes prospectus for MTN programme of SEK 5 billion and launches green framework 31 May 2021

Catena has prepared a basic prospectus for the MTN programme, which has been approved and registered by the Swedish Financial Supervisory Authority (Finansinspektionen). The prospectus is available from Catena's website www.catenafastigheter.se as well as from www.fi.se. Catena is also launching a green financing framework making it possible to issue green bonds within the MTN programme. To ensure that the framework meets strict environmental requirements, it has been reviewed by the independent climate and environmental research institute Cicero, which has allocated the framework a rating of Cicero Medium Green. Information about Catena's green framework is available on Catena's website.

Catena has successfully conducted its first green bonds issue

9 June 2021

Within the framework of the MTN programme established in May 2021, Catena has issued senior unsecured green bond loans for a total SEK 1.4 billion with a maturity of four years. The bond loans are divided into a fixed-interest loan amounting to SEK 450 million with an interest rate of MS +1.35 percent and a variable loan amounting to SEK 950 million with an interest rate of 3-month Stibor +1.35 percent. Both loans have a term of four years and maturing by 16 June 2025 at the latest. The proceeds of the issue will be used in accordance with Catena's green framework.

Significant events after the period No significant events after the end of the period.

Shares and shareholders

The share

As per the closing date, the Catena share was registered on the Nasdaq Stockholm Nordic Large Cap list. The closing price on 30 June 2021 was SEK 458.20, against the closing price of SEK 385.00 on 30 December 2020, meaning that the share price had risen by 19 percent over the period. During the period, the highest price noted for the Catena share was SEK 496.60 and the lowest was SEK 363.00. Since the autumn of 2017, Catena's share has been included in the international property index EPRA.

During the period, Catena completed two new share issues. In connection with the acquisition of five properties in Denmark and one in Borås, Sweden on 1 March from Danish company H5 Properties A/S, a private placement of 527,911 new shares was implemented at a subscription price of SEK 379 per share, which was used as partial payment for the acquisition. The new share issue was approved by Catena's Board of Directors, supported by the authorisation granted to the Board of Directors by the 2020 Annual General Meeting.

On 31 March, another private placement was implemented, raising SEK 1,080 million for the Company. As authorised by the 2020 Annual General Meeting, Catena decided to conduct a private placement of 3,000,000 shares for cash. The subscription price for the private placement, SEK 360 per share, was determined through an accelerated book building procedure and corresponded to a discount of 6.5 percent against the closing price on 31 March. The private placement was aimed at a large number of Swedish and international institutional investors and the proceeds will be used for continued growth through investments in project development and acquisitions, as well as for maintaining a stable capital structure.

As at 31 May 2021, Catena had 14,941 registered shareholders, with the number of shares amounting to 41,226,764.

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.

Share price trend, 1 July 2019 – 30 June 2021

2020, Jan 2020, Jun 2021, Jan 2021, Jun 2019, Jul SEK 200 260 320 380 440 500 Catena OMX Stockholm PI Carnegie Real Estate Index

Ownership structure as at 31 May 2021, major shareholders
	No. of shares,
	000s	Votes, %
Backahill	11,221	27.2
PGGM Pensioenfonds	3,671	8.9
Länsförsäkringar Fonder	2,437	5.9
Gustaf Hermelin	1,310	3.2
Fjärde AP-Fonden (AP4)	1,218	3.0
Vanguard	1,024	2.5
SEB Fonder	878	2.1
Cohen & Steers	720	1.7
Norges Bank	574	1.4
BlackRock	566	1.4
H5 Properties A/S	528	1.3
Aberdeen Standard Investments	474	1.2
BMO Global Asset Management	368	0.9
Duff & Phelps Investment Management	329	0.8
Other shareholders	15,909	38.5
Total	41,227	100.0

Financial reporting

28 October 2021	Interim Report, January – September 2021
22 February 2022	Year-end Report 2021
28 April 2022	2022 Annual General Meeting
28 April 2022	Interim report January–March 2022

Catena's interim report for the first half of 2021 will be presented online on 6 July at 10.00 a.m. CET – to participate, please see the instructions given on Catena's website. Up-to-date financial information is always available in both Swedish and English on Catena's website.

Financial Controller / IR David Silvesjö, telephone +46 (0)42–449 22 22

david.silvesjo@catenafastigheter.se

Current earnings capacity

Current earnings capacity
SEK M	2021, 30 Jun	2021, 31 Mar	2020, 31 Dec	2020, 30 Sep	2020, 30 Jun	2020, 31 March	2019, 31 Dec	2019, 30 Sep
Rental income	1,407.4	1,382.6	1,314.8	1,312.6	1,285.8	1,245.9	1,208.9	1,183.6
Property expenses	-307.2	-302.0	-300.2	-299.8	-293.7	-284.5	-276.0	-272.4
Net operating surplus	1,100.2	1,080.6	1,014.6	1,012.8	992.1	961.4	932.9	911.2
Central administration	-36.5	-36.5	-36.5	-36.4	-36.4	-36.4	-36.4	-32.4
Interest in profits from associated companies	-5.0	-5.0	-5.0	-5.0	-5.0	-5.0	-5.0	-5.0
Net financial items	-229.9	-236.3	-226.0	-235.5	-235.6	-221.9	-223.4	-224.6
Ground rent	-9.9	-9.9	-9.9	-9.8	-9.8	-9.8	-9.8	-9.7
Profit from property management	818.9	792.9	737.2	726.1	705.3	688.3	658.3	639.5
Tax for the period	-168.7	-163.3	-151.9	-155.4	-150.9	-147.3	-140.9	-136.9
Profit for the period	650.2	629.6	585.3	570.7	554.4	541.0	517.4	502.6
Key share data
Profit for the period/year, SEK per share	15.8	15.3	15.5	15.1	14.7	14.4	13.7	13.3
Number of shares outstanding, millions	41.2	41.2	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 costs for the current portfolio. Financial expenses are based on Catena's average interest rate level including hedges for current loan debt less deducted interest rate in normal project volume. The tax is calculated on a conventional basis in accordance with the tax rate at any given time.

Yield
%	2021, 30 Jun	2021, 31 Mar	2020, 31 Dec	2020, 30 Sep	2020, 30 Jun	2020, 31 March	2019, 31 Dec	2019, 30 Sep
EPRA NIY (initial yield)	5.3	5.3	5.5	5.7	5.9	5.9	5.8	6.0
EPRA "topped-up" NIY (normalised yield)	5.4	5.4	5.7	6.0	6.1	6.1	6.1	6.3

Catena presents a 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.

Parent Company's financial statements

Parent Company Income Statement
SEK M	2021, Jan–Jun	2020, Jan–Jun	2020, Jan–Dec
Net sales	28.6	26.9	55.5
Cost of services performed	-47.3	-43.5	-88.2
Operating profit/loss	-18.7	-16.6	-32.7
Financial income and expenses
Other interest income and similar income	214.5	102.9	240.6
Profit from participations in Group companies	–	–	85.8
Interest expenses and similar expenses	-71.8	-92.9	-144.9
Profit before appropriations and taxes	124.0	-6.6	148.8
Appropriations
Tax on profit for the period/year	-25.6	1.2	-59.5
Comprehensive income for the period/year	98.4	-5.4	89.3

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.

Balance Sheet, Parent Company
SEK M	2021, 30 Jun	2020, 30 Jun	2020, 31 Dec
Assets
Fixed assets
Tangible fixed assets	2.0	0.8	0.9
Financial non-current assets	3,234.3	3,236.2	3,236.2
Deferred tax assets	51.2	84.0	71.4
Non-current receivables	25.6	27.7	26.4
Current assets
Receivables from Group companies	6,014.1	4,473.6	4,164.0
Receivables from associated companies	37.2	39.4	–
Current receivables	8.1	9.4	7.9
Cash and cash equivalents	626.6	131.7	403.8
Total assets	9,999.1	8,002.8	7,910.6
Equity and liabilities
Shareholders' equity	3,965.9	2,657.0	2,751.7
Untaxed reserves	24.1	24.1	24.1
Non-current liabilities
Interest-bearing liabilities	2,318.2	1,749.9	1,298.8
Provisions	3.5	2.5	3.2
Other non-current liabilities	232.9	405.0	343.0
Current liabilities
Liabilities to Group companies	3,399.2	3,111.9	3,421.4
Liabilities to associated companies	–	–	28.4
Other current liabilities	55.3	52.4	40.0
Total equity and liabilities	9,999.1	8,002.8	7,910.6

Financial targets, Group operations

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 20 on pages 107–108 and 127-131 of the 2020 Annual Report. No essential changes have occurred since then.

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, 5 July 2021 Catena AB

Board of Directors

Auditor's review report regarding the summary interim financial information (interim report) prepared in accordance with IAS 34 and Chapter 9 of the Annual Accounts Act

Introduction

We have performed a limited review of the interim financial information (interim report) of Catena AB as per 30 June 2021 and the six-month period ended on that date. The Board and the CEO are responsible for the preparation and presentation of this interim financial information in accordance with IAS 34 and the Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.

Focus and scope of the review

We conducted our review in accordance with International Standard on Review Engagements ISRE 2410 Review of Interim Financial Information Performed by the Company's Elected Auditor. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical review and undertaking other review procedures. A review has a different focus and is substantially less in scope than the focus and scope of an audit in accordance with the International Standards on Auditing and generally accepted auditing standards in Sweden. The procedures

performed in a review do not enable us to obtain a level of assurance such that we would become aware of all significant matters that might be identified in an audit. The conclusion based on a review does not give the same level of assurance as a conclusion expressed based on an audit.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the interim report has not, in all material respects, been prepared for the Group in accordance with IAS 34 and the Annual Accounts Act and for the Parent Company in accordance with the Annual Accounts Act.

Malmö, 5 July 2021 PricewaterhouseCoopers AB

Mats Åkerlund, Authorised Public Accountant

Key financial figures for the Group

Key figures 1)					Definitions
	2021,	2020,	Rolling	2020,
	Jan–Jun	Jan–Jun	12-month	Jan–Dec
Property-related
Rental income, SEK M	672.8	622.3	1,314.4		1,263.9 Rental income according to Statement of comprehen sive income
Net operating surplus, SEK M	537.5	500.3	1,041.0		1,003.8 Rental income less operating and maintenance expens es, property tax and property administration.
Surplus ratio, %	79.9	80.4	79.2		79.4 Net operating surplus as a percentage of income from property.
Rental value, SEK M	1,487.7	1,324.2	1,487.7		1,388.5 Contractual rents on an annual basis plus a supplement for assessed market rents for vacant space.
Economic letting ratio, %	94.9	95.9	94.9		96.2 Contractual rents under valid leases at year-end as a percentage of rental value.
Loan-to-value ratio, %	45.1	54.7	45.1		50.1 Interest-bearing liabilities attributable to the properties,
					less cash and cash equivalents, as a percentage of the carrying amounts of the properties at the end of the period/year.
Lettable area, thousand m2	2,100.6	1,876.5	2,100.6		1,947.5 Total area available for letting.
Financial
Profit from property management, SEK M	399.2	358.5	759.3		718.6 Pre-tax profit with reversal of changes in value.
Pre-tax profit, SEK M	1,389.2	411.3	2,901.4		1,923.5 Profit before tax in accordance with Statement of comprehensive income.
Profit for the year, SEK M	1,102.6	323.5	2,306.2		1,527.1 Profit for the year in accordance with Statement of comprehensive income
Total assets, SEK M	23,299.0	18,797.7	23,299.0	20,398.6
Return on equity, %	12.8	5.1	28.7		22.0 Profit for the period/year as a percentage of average equity.
Return on assets, %	6.4	3.0	14.1		11.1 Pre-tax profit plus financial expenses as a percentage of average total assets.
Interest-coverage ratio, multiple	4.3	4.1	4.1		4.0 Pre-tax profit before reversal of financial expenses and unrealised changes in value in relation to financial expenses.
Average interest rate, %	2.3	2.4	2.3		2.3 Average interest on the loan portfolio with derivatives being taken into account as per the balance sheet date.
Interest maturity, years	3.0	3.4	3.0		3.1 Average weighted interest maturity on the loan portfolio including the effect of derivatives
Debt maturity, years	3.3	2.4	3.3		2.2 Weighted average debt maturity on the loan portfolio
Equity ratio, %	41.5	34.0	41.5		37.2 Equity including non-controlling interests as a percent age of total assets.
Equity ratio, excluding goodwill and lease assets, %	43.0	35.6	43.0		38.8 Equity including non-controlling interests as a percent age of total assets less goodwill and lease assets.
Share-related
Share price at end of period, SEK	458.20	367.00	458.20	385.00
Cash flow before change in working capital per share, SEK 2)	9.76	9.51	19.16		18.91 Cash flow before change in working capital according to the cash-flow statement in relation to the weighted average number of shares outstanding at the end of the period/year.
Equity per share, SEK	234.26	169.66	234.26		201.34 Equity attributable to Parent Company shareholders in relation to the number of shares outstanding at the end of the year/period.
Profit from property management per share, SEK 2)	10.09	9.51	19.65		19.06 Profit from property management in relation to the average number of shares outstanding at the end of the period/year.
Earning per share, SEK 2)	27.87	8.58	59.69		40.51 Profit for the period/year attributable to the Parent Company's shareholders in relation to the weighted average number of shares outstanding.
Number of shares outstanding, millions	41.2	37.7	41.2		37.7 Number of shares on the balance sheet date
P/E ratio	8	13	8		10 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 page 147 in Catena's 2020 Annual Report.

2 Prior to and after dilution.

EPRA Key Figures

EPRA, European Public Real Estate Association, is a special interest organisation for listed property companies and investors in Europe, which, among other things, sets standards for financial reporting beyond those imposed under IFRS. EPRA's recommendations for accounting and reporting are described

in the EPRA Best Practices Recommendation Guidelines (EPRA BPR). The recommendation aims to increase transparency and comparability between Europe's listed property companies. Catena reports the key figures below in accordance with this recommendation.

		2021, Jan–Jun		2020, Jan–Jun		2020, Jan–Dec
	SEK M	SEK/share	SEK M	SEK/share	SEK M	SEK/share
EPRA Earnings (Profit from property management after current tax)	386.8	9.78	347.4	9.21	696.2	18.47
	Profit from property management after the theoretical tax attributable to the profit from property management that Catena would pay without taking loss carryforwards into account. For interim periods, the tax is based on an assessment of expected tax. EPRA Earnings per share (EPS) are calculated based on the weighted average number of shares outstanding.
EPRA NRV Long-term net asset value	11,477.7	278.40	7,833.6	207.79	9,239.4	245.08
				Long-term net asset value is intended to show the long-term value of net assets without trading of the current property portfolio. This means that assets and liabilities, which do not involve any disbursement in the near future, are excluded. For Catena, this means that EPRA NRV is calculated on the basis of equity with a reversal of the fair value of derivatives, deferred tax and goodwill associated with deferred tax.
EPRA NTA Current net asset value	11,017.9	267.25	7,484.3	198.53	8,840.0	234.49
	The assumption behind the current net asset value of EPRA NTA is that there is turnover in the property portfolio, which entails the realisation of a certain share of the deferred tax liabilities. Based on transaction history, Catena has assumed that the value of the properties is realised over a 50-year period, with 10 percent of being realised as property transactions and 90 percent being sold indirectly through companies where the buyer's tax deduction is 5.15 percent. EPRA NTA is calculated as EPRA NRV with the difference that an adjustment is made for calculated actual deferred tax.
EPRA NDV Disposal value	9,154.9	222.06	5,892.8	156.31	7,087.4	188.00
		value of interest-bearing liabilities.		EPRA NDV is intended to represent a disposal value where all assets are sold (such as property transactions) and no liabilities are held to maturity. The value on disposal is calculated as shareholders' equity with goodwill reversed and adjusted by the fair
		2021, Jan–Jun %		2020, Jan–Jun %		2020, Jan–Dec %
EPRA NIY Dividend yield		5.3		5.9		5.5
		deducting development land and projects yet to be completed.		NIY is based on contractual annual rent for properties in our own portfolio as well as Catena's share of annual rent in properties owned through joint ventures after deducting initial discounts. From these annual rents, deductions are made for expected operating and maintenance expenses, property tax and property administration. This surplus is set in relation to investment properties in accordance with the consolidated balance sheet, plus the proportion of investment properties owned through joint ventures and after
EPRA "topped-up" NIY Dividend yield		5.4		6.1		5.7
	initial discounts.			In calculating EPRA "topped-up" NIY, contracted annual rent is used without deduction of
EPRA Vacancy rate		5.1		4.1		3.8
				EPRA Vacancy rate shows how much of the rental value is not received due to vacancies. EPRA Vacancy rate is calculated as the rental value for un-leased space at the end of the period as a percentage of the rental value for the entire property portfolio.

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, Large Cap.

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