Development of the Gengasen property at Örby centrum in southern Stockholm continued in 2023. The projects include constructing 129 new apartments, LSS housing and premises as well as upgrading some 70 apartments.

January–December 20231)

■ Rental revenues totalled SEK610.4 million (620.9), down 1.7%.
■ Net operating income was SEK437.3 million (397.8), up 9.9%.
■ Income from property management was SEK133.2 million (153.9), corresponding to SEK3.37 per share (4.10).
■ Changes in property values amounted to a decrease of SEK1,357.4 million (decrease: 225.1). Changes in the value of interest-rate derivatives amounted to negative SEK170.4 million (positive: 264.6).
■ Earnings after tax for the year amounted to a loss of SEK1,255.3 million (profit: 122.7), corresponding to a loss of SEK31.75 per share (profit: 3.30).

Year-end report 2023

■ Property value totalled SEK13,567.6 million (15,695.5).
■ Investments amounted to SEK348.7 million (1,001.2), of which SEK0.0 million (643.2) pertained to property acquisitions.
■ NAV totalled SEK6,600.8 million (6,594.8). This corresponded to SEK87.09 per share (174.02), down 50.0%.
■ The Board of Directors proposes to the Annual General Meeting that no dividend, that is a dividend of SEK0 (0), should be distributed for the 2023 financial year.

October–December 20231)

■ Rental revenues totalled SEK146.3 million (151.9), down 3.7%.
■ Net operating income was SEK101.5 million (84.8), up 19.7%.
■ Income from property management was SEK30.7 million (13.5), corresponding to SEK0.69 per share (0.36).
■ Changes in property values amounted to a decrease of SEK370.7 million (decrease: 210.8). Changes in the value of interest-rate derivatives amounted to negative SEK180.8 million (negative: 10.5).
■ Earnings after tax for the period amounted to a loss of SEK452.6 million (loss: 188.3), corresponding to a loss of SEK10.18 per share (loss: 4.91).
■ Investments amounted to SEK61.9 million (107.3), of which SEK0.0 million (0.0) pertained to property acquisitions.

1) John Mattson completed a rights issue in Q4 2023, which resulted in an increase of 37,896,965 in the number of shares, meaning that key metrics are not entirely comparable between years.

Great neighbourhoods across generations

Significant events during the fourth quarter

■ John Mattson's Extraordinary General Meeting resolved to issue new shares with preferential rights for existing shareholders for approximately SEK1,250 million. The subscription period under the rights issue ended on 11 December and the issue was fully subscribed without utilising the underwriting commitments.
■ John Mattson's Board of Directors resolved to revise the average annual growth target for NAV per share to not less than 7%, from the previous target of not less than 10%, over a business cycle.
■ A residential property in Högdalen in Stockholm and an office property in central Stockholm were divested with a total underlying property value of approximately SEK363 million.
■ All bank credits that would have matured by December 2024 were extended from one to seven years.

Key metrics	Oct–Dec 2023	Oct–Dec 2022	Jan–Dec 2023	Jan–Dec 2022
Property-related key metrics
Economic occupancy rate at the end of the period, %	96.4	95.9	96.4	95.9
Surplus ratio, %	69.4	55.8	71.6	64.1
Property value at the end of the period, SEK m	13,567.6	15,695.5	13,567.6	15,695.5
No. of upgraded apartments during the period	9	10	72	86
Key financial metrics
Rental revenues, SEK m	146.3	151.9	610.4	620.9
Net operating income, SEK m	101.5	84.8	437.3	397.8
Income from property management, SEK m	30.7	13.5	133.2	153.9
Average interest rate, %	3.43	2.54	3.43	2.54
LTV ratio at the end of the period, %	49.8	56.6	49.8	56.6
Interest coverage ratio during the period, multiple 2)	1.6	1.3	1.6	1.9
Share-related key metrics
Income from property management, SEK/share	0.69	0.36	3.37	4.10
Growth in income from property management, SEK/share, %3)	93.2	-43.3	-17.9	37.6
Profit/loss after tax, SEK/share	-10.18	-4.91	-31.75	3.30
Growth in NAV, SEK/share, % 3)	-50.00	-1.1	-50.00	-1.1
NNNAV, SEK/share	79.99	162.08	79.99	162.08
NAV, SEK/share	87.09	174.02	87.09	174.02

Key metrics Q4 2023 versus Q4 20221)

1) The financial targets are presented on page 4.

2) The interest coverage ratio for the period has been calculated excluding non-recurring costs of SEK 3.0 million.

3) Change in net asset value per share and income from property management per share after the completed rights issue for a total of 37,896,965 shares. Definitions of key metrics are provided on page 25.

Strong company and positive outlook

During the year, John Mattson successfully adapted the company to new market conditions and can now invest in generating long-term value.

Employee and customer satisfaction increased over the year in parallel with the major efficiency measures we carried out.

Rapid transition and strong balance sheet

Since the major shift in macro-economic conditions in 2022, we have been decisive and proactive in our adaptation of the company to a world with high inflation and rising interest rates. The cost-savings and efficiency programme that we launched in 2022 has been successful and is estimated to have had a positive effect of approximately SEK 60 million on EBIT in 2023. Despite high inflation, we lowered our costs for property management approximately SEK 150 per square metre compared with the previous year and ended the year with a record high surplus ratio for the company of 72% and an interest coverage ratio of 1.6.

Through property sales with a total underlying property value of SEK 2.2 billion since June 2022 and a rights issue of SEK 1.25 billion during the year, we also strengthened the balance sheet. We are grateful to our owners for enabling a financially stronger company. The company's loan-to-value ratio declined to 49.8% at the end of the year, even though we adjusted the yield requirement for our property values upward by an average of 50 basis points. By actively working to secure lower interest rates, we reduced the company's exposure to high market interest rates, and around 80% of John Mattson's net liabilities are hedged at attractive levels for the next three years.

Overall, we improved the company's ability to manage higher market interest rates. Our debt yield for net interest-bearing liabilities amounted to 6.5% at the end of 2023, compared with 4.5% at the end of 2022, thereby giving the company headroom to manage higher interest rates on current liabilities than previously.

We deliver within sustainability

I am very proud of our success within sustainability. During the year, employee and customer satisfaction increased in parallel with the major efficiency measures we completed at the company. It is especially gratifying that our tenants also feel safer in and around their homes, even though in 2023 we had major challenges with escalating violence in society at large. Safety is the basis for creating attractive areas and it is very positive that our long-term, structured safety initiatives, individually as well as in collaboration with other actors, are having results.

During the year we increased our focus on the company's climate impact and improved the organisation in this area. We continued to work according to the overall plan established in 2022 to reach our science-based target of reducing GHG emissions within Scope 1 and Scope 2 40% by 2030, with a base year of 2021. We have now added a sub-target of reducing purchased energy 25% by 2026. A plan has been developed and its implementation has begun.

Positive outlook

The outlook for 2024 is positive. Inflation has declined and is now at a level close to the Riksbank's long-term goal. Long-term interest rates have also fallen to a level that is attractive for low-yield assets like housing. We need to be prepared for a long, slow wait for interest rates and inflation to decrease further.

John Mattson's properties are located in attractive areas in growth municipalities within the Stockholm region. We have satisfied customers with high demand for our housing. The willingness to pay for our housing exceeds our average rent by a significant margin, which means stable

rental revenues with low risk for vacancies – a source of strength in a weak economy. Housing rent negotiations for 2023 resulted in a historically high rent increases. Rent increases amounted to 5.1% for those residential properties where we have completed rent negotiations for 2024. Rent negotiations are ongoing for the remainder. Historically, annual rent negotiations have compensated residential properties for inflation even if it can take time before rents are adjusted.

Because we strengthened our balance sheet in 2023, we are now able to invest in generating long-term value. In 2024, we will focus on investing in our existing properties through energy efficiency measures and value-generating apartment upgrades. This will further improve our cash flow and have a positive effect on property values. In John Mattson's portfolio there are about 600 apartments that could receive base or total upgrades, and about 900 apartments that are base upgraded and could be given total upgrades. Our long-term target is to upgrade about 200 apartments annually. As our priority is to invest in long-term value creation, the Board of Directors proposes that no dividend be distributed for the 2023 financial year.

New production of housing will start when market conditions are favourable, which is expected to be no earlier than 2026. Until then, we are working with our development right portfolio with an eye on our long-term goal of starting production of 250 apartments per year.

We will also continue to make select divestments in order to optimise our use of capital and to increase the risk-adjusted yield in order to further improve the company's ability to manage higher interest rates.

Finally, I would like to thank all of our employees for their fantastic commitment and hard work during the year! We have quickly adapted the company to new macroeconomic conditions while increasing customer and employee satisfaction. We have also taken responsibility for coming generations through our climate initiatives. Together we are developing great neighbourhoods across generations.

Per Nilsson, CEO of John Mattson Fastighetsföretagen AB

Business idea, goals and strategies

Our business idea revolves around the long-term ownership, management and development of residential property and attractive local communities in the Stockholm region. We make daily life easier for everyone by offering well-managed, attractive homes and safe neighbourhoods.

Strategies

John Mattson's strategy is based on four cornerstones, in which sustainability efforts are integrated in every part.

Property management – Our approach to property management is integrated and near-at-hand. We know our properties and understand our customers. We apply an overall approach taking responsibility for the portfolio and activity in the outdoor areas. We work proactively with property management and continuously make efficiency enhancements and value-generating investments with the aim of achieving more sustainable property operations and increasing net operating income. Focus is on optimising property consumption and thereby reducing operating expenses. The goal is to achieve a 45% reduction in energy use through the investment of approximately SEK 200 million.

Adding value – We add value to our buildings to secure the buildings' technical longevity and to generate increased net operating income. Value is added by upgrading, extending and converting space to housing or commercial operations. We have a well-established two-step model for housing upgrades, the Larsberg model. First, the initial base upgrade conducted with tenants in place secures the building's technical status. The following step, the total upgrade, brings the apartments up to contemporary standards, to meet demand from existing and new tenants. Total upgrades are carried out when apartments are vacant or where tenants so wish. All upgrades take place in dialogue with the tenants and adjusted rent levels are negotiated with Hyresgästföreningen (Swedish Union of Tenants). The goal is to upgrade some 200 apartments per year. Potential has been identified in the existing

portfolio for some 600 apartments to receive base and total upgrades and for some 900 apartments that have already received base upgrades to be given total upgrades. The yield on both base and total upgrades is 5% with an investment of SEK 1.25 million per apartment. The yield on total upgrades from a base upgraded apartment is about 6.5% with an investment of about SEK 0.4 million per apartment.

Densification – We are increasing the housing density of our own land or adjacent to existing properties, often on already paved land. In addition to new construction, infill development is also taking place in the form of extensions to existing properties. In this way, we are expanding the residential and commercial offering, and meeting the tenants' various needs. The local community is being provided with new attributes, and diversity and variation is increasing, contributing to great neighbourhoods. The aim is to generate growth through value adding construction that concurrently makes the neighbourhoods more attractive. Development is conducted in close collaboration with the municipalities where we operate. Infill development projects can start at the earliest in 2026. Initially, these will be in small volumes to then be scaled up in line with the goal of production starts for 250 apartments per year.

Acquisitions – We strive to acquire properties and development rights with development potential in attractive market locations in the Stockholm region, close to efficient infrastructure. All acquisitions are approached using a long-term ownership and management perspective, and areas with potential for adding value and development are particularly attractive. We also regularly evaluate the composition of the property portfolio through selective divestments.

Financial targets

An average annual growth in NAV per share of not less than 7% over a business cycle.

Financial risk mitigation – John Mattson aims for low financial risk. This means that:

■ the long-term net loan-to-value ratio should not exceed 50%; and
■ the long-term interest coverage ratio should not be less than 1.5.

An average annual growth in income from property management per share of not less than 10% over a business cycle.

INCOME FROM PROPERTY MANAGEMENT, PER

Dividend policy – Over the long term, dividends are to amount to 50% of annual income from property management after taking into consideration the company's investment plans, consolidation needs, liquidity and overall financial position. Dividends may be less than the long-term target or be fully absent.

Sustainability targets

In 2022, John Mattson adopted new long-term sustainability targets, including science-based climate targets, for each of the company's four focus areas in sustainability. The new targets are to steer the company's operations toward more sustainable development and contribute to achieving the vision of "Great neighbourhoods across generations." Results for sustainability targets are presented on page 6.

Dynamic and safe local communities

Commitment for social issues creates value for tenants and local communities.

Targets

■ Safe neighbourhoods as assessed by residents: to outperform the sector average for comparable properties.
■ Attractive areas according to the residents: above the sector average.

Responsible material and waste management Responsible material choices, reusing materials and efficient waste management reduce climate impact and increase the recycling rate.

Energy-efficient and fossil-free solutions

The energy consumption during the lifespan of a property is considerable. Energy classifications, choosing fossil-free energy types and efficient management of the properties reduce their climate impact.

Targets

■ By 2030, John Mattson will have reduced its Scope 1 and Scope 2 greenhouse gas emissions by at least 40% compared with the base year of 2021.
■ John Mattson will reduce its greenhouse gas emissions from new builds and redevelopments on a per square metre basis to match or better the property sector average.

Healthy and inspiring workplaces

Proactive efforts for a healthy, safe and stimulating work environment for employees and suppliers are a prerequisite for well-being and commitment.

Targets

■ Engaged employees and an efficient organisation: above the average results of comparable companies.
■ John Mattson has an inclusive culture that enables the company to attract and retain employees with various backgrounds and perspectives. The recruitment process is skillsbased and free from discrimination.
■ The proportion of women or men is not to exceed two thirds within the company, management and the Board of Directors.
■ Absenteeism among John Mattson's employees: not exceeding 3%.
■ John Mattson aims to have zero accidents leading to absenteeism of over one day at our workplaces. This applies both for John Mattson's own personnel and for contracted personnel working for John Mattson.

Sustainability targets and fulfilment

Area	Sustainability targets	Outcome	Progress and comments
Dynamic and safe local communities	Safe neighbourhoods as assessed by residents: to outperform the sector average for comparable properties.	80.6% (80.5%)	80.6% of residents feel safe in our properties and neighbourhoods, up 0.5 percentage points from 2022 for comparable holdings. The increase was largest in the areas we have prioritised most and where the need to improve safety was greatest. The industry average for private property companies and public housing corporations in the Stockholm region amounted to 80.5% in 2023.
	Attractive areas according to the residents: above the sector average.	85.0% (85.9%)	85% of residents consider our neighbourhoods attractive, up 0.5 percentage points from 2022 for comparable holdings. The industry average for private property companies and public housing corporations in the Stockholm region amounted to 85.9% in 2023. Well-being in the area, whether tenants would recommend other people to move there and how favourably they discuss their neighbourhood are part of the Attractive areas measurement.
Responsible material and waste management	By 2030, John Mattson will have reduced its Scope 1 and Scope 2 greenhouse gas emissions by at least 40% compared with the base year of 2021.	2.8% (5.5%)	In 2023, we reduced our CO2e emissions 2.8% compared with 2022. The goal of 5.5% per year to achieve the target of a reduction of 40% by 2030 was not achieved. Compared with the base year 2021, however, the average reduction in 2022 and 2023 was 11.4% per year, which exceeds the target of an average reduction of 5.5 per year.
Energy efficient and fossil-free solutions	John Mattson will reduce its greenhouse gas emissions from new builds and redevelopments on a per square metre basis to match or better the property sector average.	In line with the sector	Starting in 2022, new buildings require climate declarations. This means that in the future there will be statistics for the impact of new builds on the climate. It is not currently possible to follow up our target through this statistic. We estimate that the climate impact of projects we finished in 2023 were aligned with those for the sector thanks to the systematic choices made in our projects.
Healthy and inspiring workplaces	Engaged employees and an efficient organisation: above the average results of comparable companies.	7.9 (7.8)	Our weekly employee survey includes questions about leadership, job satisfaction, meaningfulness, autonomy, work situation, participation, personal development, team spirit and commitment. The outcome for the collective value for all of these areas was 7.9 out of 10 for Q4 2023, compared with the industry average of 7.8.
	John Mattson has an inclusive culture that enables the company to attract and retain employees with various backgrounds and perspectives. The recruitment process is skills-based and free from discrimination.		Through our tool for measuring well-being in the organisation, we can continuously follow up on employee experiences when it comes to being respected and included. We can detect and immediately follow up on all indications of bullying or harassment. During the fourth quarter of 2023, all employees agreed strongly or substantially with the statement that they felt respected and included. A recruitment process free from discrimination ensures close dialogue with reliable recruiters.
	The proportion of women or men is not to exceed two thirds within the company, management and the Board of Directors.	Under 2/3	At the end of 2023, the gender breakdown was 54/46 men/ women at the company, with 50/50 in management and 57/43 on the Board of Directors.
	Absenteeism among John Mattson's employees: not exceeding 3%.	1.9% (3%)	The collective absenteeism during the year (long- and short term) amounted to 1.9%, an improvement compared to 4% for 2022.
	John Mattson aims to have zero accidents leading to absenteeism of over one day at our workplaces. This applies both for John Mattson's own personnel and for contracted personnel working for John Mattson.	0 (0)	No accidents were reported for 2023.

Property portfolio

John Mattson is a property company with operations in the Stockholm region. The company is listed on Nasdaq Stockholm, Mid Cap.

Our areas

The portfolio has been divided into four property management areas: Lidingö, North Stockholm, City/Bromma and South Stockholm/Nacka. The property portfolio comprises 4,270 rental apartments. The total lettable area amounted to 342,800 square metres, where residentials comprised 82%.

The majority of the properties were built in the 1950s to 1970s, and have good preconditions for adding value.

Growth will be through acquisitions and infill development in attractive market locations in the Stockholm region.

Property portfolio	on 31 December 2023							January–December 2023
	Apartments	Lettable area	Property value		Rental value		Economic occupancy rate	Rental revenues	Property expenses	Net operating income
	No.	thousand sq m	SEK m	SEK/sq m	SEK m	SEK/ sq m	%	SEK m	SEK m	SEK m
Lidingö	2,059	157	6,816	43,288	292	1,857	98.2	299	73	226
North Stockholm	1,068	80	1,758	22,046	109	1,369	91.7	102	44	58
City/Bromma	499	47	2,036	43,520	95	2,023	95.7	97	30	67
South Stockholm/ Nacka	644	59	2,957	50,293	126	2,146	95.3	116	31	86
Total properties	4,270	343	13,568	39,581	622	1,816	96.1	614	178	436

On 31 December 2023		Rental value		Vacancies and discounts1)			Contract value			Occupancy rate
Object	No.	Lettable area, thousand sq m	Rental value, SEK m	No.	Lettable area, thousand sq m	Vacancies and discounts, SEK m	No.	Let area, thousand sq m	Contract value, SEK m	Economic occupancy rate, %
Housing	4,270	280	467	89	5	3	4,181	275	464	99.4
Commercial 2)		62	134		12	15		51	118	87.5
Parking places			21			5			17	78.8
Total	4,270	343	622	89	17	22	4,181	326	598	96.1

1) Vacancies primarily pertain to properties with upgrade projects that are either ongoing or that have a planned start.

2) 33% of commercial vacancies pertain to development properties

Lidingö

John Mattson's largest property management area is in Lidingö, both in terms of number of apartments and property value. The properties mainly comprise residentials in the Larsberg area and in Käppala, which account for 95% of the total lettable area. The commercial premises house local services and educational premises. The majority of the properties were constructed in the 1960s, but also include new buildings from the turn of the century.

Since 64% of the portfolio has received total upgrades or is newly built, the housing is of a generally high standard. All the apartments have received base upgrades and total upgrades are

ongoing both in Larsberg and in Käppala. During the period, 49 (86) apartments were upgraded.

The portfolio also includes a development property, Fyrtornet 5 in Larsberg under the project name of Ekporten, where the detailed development planning for new housing is ongoing.

Possibilities are being investigated in Käppala regarding the construction of loft apartments at existing properties, but the project is at an early stage.

Three properties in Lidingö were divested in 2023, of which two in the Baggeby area and one in the Dalénum area. The properties were transferred during the first and second quarters of 2023.

Key metrics, Lidingö	Q4 2023
Area, residentials, thousand sq m	149
Rental value, residentials, SEK/sq m	1,775
Economic occupancy rate, residentials, %	99.0
Property value, residentials, SEK/sq m	42,972
Surplus ratio, residentials, %	71

SHARE OF LETTABLE AREA

Residential properties Commercial properties Development properties

North Stockholm

North Stockholm comprises John Mattson's residential management portfolio in the municipality of Sollentuna, in the areas of Rotebro, Rotsunda, Häggvik and Tureberg. The largest share of properties was built in the 1970s, but some are also older (built in the 1940s and 1950s) and newer (built in the 1990s or later). Upgrade plans for the properties in Rotebro and Rotsunda are underway.

Upgrades in Rotebro are expected to start earliest in 2024.

In Vilunda in Upplands Väsby, an apartment block with some seventy rental apartments and commercial operations on the ground floor was completed in the end of 2022. The building is equipped with various mobility solutions to enable sustainable living and travel for residents.

Key metrics, North Stockholm	Q4 2023
Area, residentials, thousand sq m	80
Rental value, residentials, SEK/sq m	1,369
Economic occupancy rate, residentials, %	91.7
Property value, residentials, SEK/sq m	22,047
Surplus ratio, residentials, %	48

SHARE OF LETTABLE AREA

City/Bromma

In City/Bromma, John Mattson's residential management portfolio includes properties in Slakthusområdet, Hammarby Sjöstad, Johanneshov, Abrahamsberg and Gullmarsplan. Residential properties account for 65% of the total lettable area. The buildings were constructed from the early 1900s to 2017, with the majority dating back to the 1940s. The commercial properties contain premises for local services, offices and community services.

Development properties are located in Abrahamsberg and in Söderstaden (urban development area comprising Globenområdet, Slakthusområdet and Gullmarsplan-Nynäsvägen).

A detailed development plan has been adopted for the construction of a nursing and care home at the Geografiboken 1 property in Bromma.

The planning process for the expansive Slakthusområdet in Söderstaden started in the first quarter of 2022 for the construction of new housing. The detailed development plan is expected to enter legal force in 2026. John Mattson's leaseholds are in a prime location near the future Metro station entrance in the area.

In the end of 2023, an office property at Lilla Bantorget, was divested, John Mattson's last property in central Stockholm.

Key metrics, City/Bromma	Q4 2023
Area, residentials, thousand sq m	31
Rental value, residentials, SEK/sq m	2,088
Economic occupancy rate, residentials, %	99.0
Property value, residentials, SEK/sq m	49,011
Surplus ratio, residentials, %	68

SHARE OF LETTABLE AREA

South Stockholm/Nacka

John Mattson's portfolio in South Stockholm and Nacka is mainly located in Hägerstensåsen, Västberga and Örby. Residential properties account for 63% of the total lettable area and largely comprise properties built in the 1990s. Commercial properties account for 17% of the total lettable area.

The area has three development properties at different stages of development. The development of the Gengasen property is ongoing at Örby centrum, a new production project that includes 129 apartments, LSS housing and commercial premises. During the period, 48 (0) apartments were completed. The remaining apartments and premises will be completed in spring 2024. An upgrade project for apartments also began in the same area in 2022. During the period, 23 (0) apartments were upgraded. The upgrade project will continue in 2024.

John Mattson has received a land allocation in Örnsberg for the Pincetten project, where work is ongoing with the detailed development plan for the new construction of over 200 rental and tenant-owner apartments, commercial premises and a preschool.

The Sicklaön 37:46 property at Finnboda kaj in Nacka Municipality includes development rights for residential properties.

In the end of 2023, a property was divested and transferred in Högdalen.

Key metrics, South Stockholm/Nacka	Q4 2023
Area, residentials, thousand sq m	38
Rental value, residentials, SEK/sq m	1,991
Economic occupancy rate, residentials, %	99.4
Property value, residentials, SEK/sq m	44,579
Surplus ratio, residentials, %	69

SHARE OF LETTABLE AREA

Development projects

John Mattson works actively with property development to identify undeveloped land where infill development of existing built-up areas and new production is possible and appropriate to enable long-term value growth. These efforts are conducted either on our own land or through land acquisition or allocation. Even premises that were previously intended for purposes other than housing are converted to housing when this is financially favourable.

The prevailing uncertain market conditions for project operations have resulted in the postponement of most planned projects. Ongoing projects are being completed but no new projects will begin until the company assesses that market conditions are favourable, which for projects to add value is assessed to be in 2024 at the earliest and for infill development projects assessed to be 2026. John Mattson's total project portfolio is presented in the table below.

Project	Area	Category	Type	No. of Apts.1)	Additional lettable area1)	Status	Estimated plan date2)
Gengasen, Örby	South Stock holm/Nacka	Own management	Rental properties	129	8,400	Production ongoing
Geografiboken, Abrahamsberg	City/Bromma	Own management	Nursing and care home	80	5,900	Detailed development plan entered force
Finnboda, Nacka	South Stock holm/Nacka	Own management	Rental properties	20	1,300	Detailed development plan entered force
Juno, Käppala	Lidingö	Own management	Rental properties	50	1,750	Detailed development plan entered force
Pincetten, Örnsberg	South Stock holm/Nacka	Own management	Rental properties and housing	210	13,000	Detailed development plan in progress	2025
Ekporten, Larsberg/Dalénum	Lidingö	Own management	Housing	90	6,000	Detailed development plan in progress	2026
Hjälpslaktaren, Slakthusområdet	City/Bromma	Own management	Rental properties	210	12,000	Detailed development plan in progress	2026
Total development portfolio				789	48,350

1) The number of apartments and the area are assessments by John Mattson and are therefore only preliminary. The figures could change during the course of the project.

2) Estimated plan date is the date when a detailed development plan enters force. An assessment is then made for when the project planning can start for the development rights.

Current earnings capacity

The table illustrates John Mattson's current earnings capacity on a 12-month basis as per 31 December 2023, after taking the entire property portfolio on the balance-sheet date into consideration.

Properties acquired and taken possession of, and projects completed during the period are restated on an annual basis. Deductions are made for divested and transferred properties, but none are made for properties where a sales agreement has been reached but the transfer has not yet been made.

Current earnings capacity is reported in conjunction with interim and year-end reports. The aim is to highlight the company's underlying earning capacity. It is important to note that the current earnings capacity is not the same as a projection for the forthcoming 12 months.

The earnings capacity includes no assessments of rental, vacancy or interest-rate changes. Moreover, John Mattson's earnings are impacted by changes in the values of properties and derivatives. None of the above was taken into consideration when assessing current earnings capacity. Rental revenues are based on contractual revenue on the balance-sheet date. The vacancy level shown in the earnings capacity primarily pertains to upgrade projects. Property expenses are based on LTM property expenses, disregarding electricity support which was not included in the calculation.

Property administration costs are based on estimated costs on a rolling 12-month basis using the scope and extent of property administration on the balance-sheet date.

Central administration costs are based on estimated costs on a rolling 12-month basis using the scope and extent of central administration at the balance-sheet date. For more information about central administration costs, refer to Note 4, page 12.

Net financial items have been calculated based on interest expenses for the last 12 months with supplements for ground rent and is not a forecast of future interest costs. Any interest on cash and cash equivalents has not been taken into account.

Amounts in SEK m	31 Dec 2023
Rental value	622.4
Vacancies and discounts	-22.3
Rental revenues	600.1
Operating expenses	-108.8
Maintenance expenses	-13.7
Property tax	-13.1
Property administration	-20.2
Net operating income	444.3
Central administration costs	-48.2
Net financial items	-253.1
Less non-controlling interests	0.6
Income from property management	143.6

Glass art by artiest Simon Klenell. The sculpture is in the entrance to Parkhusen in Larsberg on Lidingö.

Condensed consolidated income statement

Amounts in SEK m	Note	Oct–Dec 2023	Oct–Dec 2022	Jan–Dec 2023	Jan–Dec 2022
Rental revenues	2	146.3	151.9	610.4	620.9
Operating expenses	3	-32.2	-42.1	-123.9	-141.2
Maintenance	3	-4.5	-12.8	-15.3	-35.2
Property tax	3	-3.3	-3.0	-13.7	-13.6
Property administration	3	-4.8	-9.3	-20.2	-33.1
Net operating income		101.5	84.8	437.3	397.8
Central administration costs	4	-13.8	-14.6	-51.0	-58.8
Net financial items	5	-57.0	-56.6	-253.1	-185.2
Income from property management	1	30.7	13.5	133.2	153.9
Changes in property values	6	-370.7	-210.8	-1,357.4	-225.1
Change in the value of interest-rate derivatives	6	-180.8	-10.5	-170.4	264.6
EBT		-520.8	-207.7	-1,394.6	193.4
Current tax	7	7.2	9.1	0.1	-0.2
Deferred tax	7	61.0	10.3	139.2	-70.5
Profit/loss for the period		-452.6	-188.3	-1,255.3	122.7
STATEMENT OF COMPREHENSIVE INCOME
Comprehensive income for the period
Profit/loss for the period		-452.6	-188.3	-1,255.3	122.7
Other comprehensive income		–	–	–	–
Comprehensive income for the period		-452.6	-188.3	1,255.3	122.7
Profit/loss for the period attributable to Parent Company shareholders, weighted Av. No. of shares		-10.18	-4.91	-31.75	3.30
Comprehensive income for the period attributable to:
Parent Company shareholders		-452.8	-186.1	-1,255.9	123.7
Non-controlling interests		0.2	-2.3	0.6	-1.0
Average No. of shares, thousand		44,480	37,897	39,556	37,537

January to December 2023 period

The comparative figures pertain to the year-earlier period. Some amounts have been rounded off, which means that tables and calculations do not always tally. The stated SEK per square metre figures pertain to rolling 12-month outcomes, whereby acquired and transferred properties and completed projects have been restated at the full-year rate, and divested and transferred properties excluded from the period.

Note 1 Income from property management

Income from property management (that is, profit excluding value changes and tax) for the period was SEK 133.2 million (153.9), corresponding to SEK 3.37 per share (4.10). This corresponded to negative annual growth in income from property management per share of 17.9%.

Net operating income for the period totalled SEK 437.3 million (397.8), corresponding to SEK 1,296 per sq m (1,106) over the rolling 12-month period. This corresponded to annual growth in net operating income per sq m of 17.2%.

Note 2 Revenue

The Group's revenue for the period amounted to SEK 610.4 million (620.9), corresponding to SEK 1,750 per sq m (1,726) over the rolling 12-month period.

Rental revenues for residential properties totalled SEK 472.7 million (470.3), corresponding to SEK 1,618 per sq m (1,563). The general annual housing rent negotiations for 2023 resulted in increases of 2.3–4.75%.

Revenue	Jan–Dec 2023, SEK m	31 Dec 2023, SEK/sq m	Jan–Dec 2022, SEK m	31 Dec 2022, SEK/sq m
Lidingö	297.4	1,825	311.9	1,809
North Stockholm	101.1	1,256	96.2	1,206
City/Bromma	96.1	1,954	95.7	1,973
South Stockholm/Nacka	115.8	2,054	117.1	1,982
Total	610.4	1,750	620.9	1,726

Note 3 Property expenses

Property expenses totalled SEK 173.1 million (223.1), corresponding to SEK 454 per sq m (620) over a rolling 12-month period, which is a cost reduction of SEK 166 per sq m or 26.8%. In the third quarter, electricity support of SEK 4.9 million was received and reported as revenue. In the fourth quarter, electricity support was reclassified and is now recognised as a reduction in operating expenses. Otherwise, the decrease in costs was mainly attributable to lower costs for property administration, operation and maintenance.

Operating expenses amounted to SEK 123.9 million (141.2), due to lower costs for energy and property upkeep. Maintenance expenses amounted to SEK 15.3 million (35.2).

Property administration expenses decreased to SEK 20.2 million (33.1).

The change was attributable to the effects from the implemented efficiency and cost-savings programme.

Property expenses	Jan–Dec 2023, SEK m	31 Dec 2023, SEK/sq m	Jan–Dec 2022, SEK m	31 Dec 2022, SEK/sq m
Lidingö	70.9	423	104.6	607
North Stockholm	43.0	510	55.0	690
City/Bromma	29.3	514	29.1	599
South Stockholm/Nacka	29.8	417	34.4	582
Total	173.1	454	223.1	620

Property expenses/sq m	Lidingö	North Stockholm	City/ Bromma	South Stock holm/ Nacka	Total
Operating expenses	296	373	338	284	317
Maintenance	35	48	64	24	40
Property tax	33	31	52	49	38
Property administration	58	57	59	59	57
Total	423	510	514	417	454

Note 4 Central administration costs

Central administration costs comprise costs for company management, business development and central support functions. During the period, expenses amounted to SEK 51.0 million (58.8) and included non-recurring costs of SEK 3.0 million, of which SEK 2.0 million arose in conjunction with the conclusion of the former CFO's employment. Total cost reductions, excluding non-recurring costs, amounted to SEK 10.8 million and were attributable to the implemented efficiency and cost-savings programme.

Note 5 Net financial items

Net financial items amounted to SEK -253.1 million (-185.2). The year-on-year increase in net financial items was attributable to higher interest rates. Capitalised financial expenses for ongoing projects amounted to SEK 29.2 million (2.0). The average interest rate, including the effects of interest-rate derivatives, was 3.43% (2.54) at the end of the period. The interest coverage ratio was a multiple of 1.6 (1.9) at the end of the period.

Note 6 Changes in value

Changes in property values amounted to a loss of SEK 1,357.4 million (loss: 225.1). Realised changes in the value of divested properties in the period amounted to a loss of SEK 34.6 million (loss: 13.9). Unrealised changes in property values amounted to a loss of SEK 1,322.8 million

(loss: 211.1). The value changes were attributable to an improved net operating income linked to implemented efficiency enhancements and investments, raised assessed yield requirements and divested properties.

The average valuation yield for the Group was 3.4% (2.9% on 31 December 2022).

Financial information

Changes in value	Jan–Dec 2023, SEK m	Jan–Dec 2022, SEK m
Change in net operating income	1,050.0	266.6
Ongoing projects/development rights	185.6	260.3
Yield requirement	-2,558.2	-764.9
Acquired properties	0.0	26.8
Divested properties	-34.6	-13.9
Total	-1,357.4	-225.1

Unrealised changes in the value of interest-rate derivatives in the period amounted to a loss of SEK 170.4 million (gain: 264.6). The change was mainly due to movements in the underlying market interest rates during the period.

Note 7 Tax

Current tax for the period amounted to an income of SEK 0.1 million (expense: 0.2). Deferred tax amounted to income of SEK 139.2 million (expense: 70.5) and was impacted by unrealised changes in net property and derivative values of SEK 307.6 million (53.5). Other fiscal adjustments do not include non-deductible interest expenses of SEK 204.9 million (120.0), for which the tax value has not been capitalised since the opportunities to utilise these adjustments in the future is deemed uncertain. Realised value changes and unrecognised deferred tax pertaining to declines in value for historic asset acquisitions resulted in net fiscal adjustments of SEK 106.7 million.

The Group's loss carryforwards are estimated at SEK 45.4 million (364.7 on 31 December 2022), and comprise the basis for the Group's deferred tax assets. The deferred tax liability pertains primarily to temporary differences between the fair values and the fiscal residual values of properties. The properties' fair values exceed their fiscal values by SEK 9,915.8 million (11,663.1 on 31 December 2022). The full nominal tax rate of 20.6% is recognised as a deferred tax liability, less deferred tax pertaining to historical asset acquisitions.

SEK m	Tax base, current tax	Tax base, deferred tax
Income from property management	133.2
Tax deductible
Depreciation	-89.9	89.9
Other fiscal adjustments	275.6	442.9
Profit before unrealised changes in value	318.9	533.2
Changes in property values		-1,357.4
Changes in derivative values		-170.4
Taxable earnings before loss carryforwards	318.9	-995.0
Loss carryforwards, opening balance	-364.7	364.7
Loss carryforwards, closing balance	45.4	-45.4
Taxable profit/loss	-0.4	-675.7
Tax for the period	0.1	139.2

SEK m	Tax base	Nominal tax liability	Actual tax liability/asset
Properties	-9,915.8	-2,042.7	-594.9
Derivatives	-69.0	-14.2	-13.1
Loss carryforwards	45.4	9.4	7.7
Untaxed reserves	-32.1	-6.6	-6.6
Total	-9,971.5	-2054.1	-607.0
Property, asset acquisitions	4,368.6	899.9
Total	-5,602.9	1,154.2	-607.0

According to balance sheet

The nominal tax liability recognised in the balance sheet was a net amount of SEK 1,154.2 million (1,298.0). However, the actual net tax liability was calculated at SEK 607.0 million (691.9). A tax rate of 6% has been assumed for the estimated, actual deferred tax on the Group's properties, based on a discount interest rate of 3%. This estimation was conducted with regard to the applicable tax legislation, which means that properties can be sold in a corporate wrapper with no tax consequences. The assumption underlying this assessment is that the properties will be divested on an ongoing basis over a 50-year period and where 90% of the properties will be sold using a corporate wrapper and 10% will be divested through direct property transfers. Tax deductions for the indirect transactions have been estimated at 5.5%.

In respect of loss carryforwards and derivatives, the estimated actual tax liability was calculated based on a discount interest rate of 3%, whereby the assessment is that the loss carryforwards will be realised over a ten-year period and the derivatives will be realised over an eight-year period. This means that the estimated actual tax is 17% for loss carryforwards and 19% for derivatives.

Condensed consolidated balance sheet

Assets Investment properties 8 Right-of-use assets, leaseholds 9 Interest-rate derivatives 10 Other non-current assets Total non-current assets Current receivables	13,567.6 375.7 69.0	15,695.5


		345.2
		226.5
	11.8	12.0
	14,024.1	16,279.4
	104.7	75.9
Interest-rate derivatives 10		12.9
Cash and cash equivalents	433.6	47.6
Total current assets	538.3	136.4
Total assets	14,562.4	16,415.8
Equity and liabilities
Equity attributable to Parent Company shareholders 10	5,515.6	5,536.2
Non-controlling interests	80.5	105.3
Total equity	5,596.2	5,641.5
Provisions	1.0	1.4
Lease liability, leaseholds 9	375.7	345.3
Non-current interest-bearing liabilities 10	6,083.9	6,363.9
Other non-current liabilities	7.0	7.0
Deferred tax liabilities 7	1,154.2	1,298.0
Total non-current liabilities	7,621.8	8,015.6
Current interest-bearing liabilities 10	1,108.8	2,559.9
Other current liabilities	235.6	198.8
Total current liabilities	1,344.4	2,758.7
Total liabilities	8,966.2	10,774.3
Total equity and liabilities	14,562.4	16,415.8

Condensed consolidated statement of changes in equity

Amounts in SEK m	Total shares outstanding, thousand1, 2)	Share capital	Other contributed capital	Retained earnings	Equity attributable to Parent Company shareholders	Non-controlling interests	Total equity
Equity on 1 Jan 2022	36,364.8	12.1	770.1	4,361.7	5,143.9	106.2	5,250.2
Non-cash issue	1,532.1	0.5	267.9		268.4		268.4
Comprehensive income for the period				123.7	123.7	-1.0	122.7
Equity on 31 Dec 2022	37,897.0	12.6	1,038.0	4,485.5	5,536.0	105.3	5,641.6
New share issue	37,897.0	12.6	1,238.0		1,250.6		1,250.6
Issue costs			-17.7		-17.7		-17.7
Acquisition of minority shares, controlling influence retained				2.4	2.4	-25.3	-22.9
Comprehensive income for the period				-1,255.9	-1,255.9	0.6	-1,255.3
Equity on 31 Dec 2023	75,793.9	25.3	2,258.3	3,232.1	5,515.6	80.5	5,596.2

1) Two non-cash issues, of 672,208 and 859,930 shares respectively, were decided in February 2022 in conjunction with the acquisition of properties. The shares were registered on 3 February and 5 May 2022. In December 2023, a rights issue was completed for a total of 37,896,965 shares. which were registered on 15 December (37,783,415) and 21 December (113,550). The number of shares on 31 December 2023 was 75,793,930.

2) As of 31 December 2023, the quotient value of the shares was SEK 0.33 per share (0.33).

Balance sheet on 31 December 2023

Note 8 Investment properties

John Mattson's property portfolio is located across five municipalities in the Stockholm region – in Lidingö, Sollentuna, Nacka, Upplands Väsby and in the City of Stockholm.

At the end of the period, property value totalled SEK 13,567.6 million (15,695.5 on 31 December 2022). The property value has decreased SEK 2,128.0 million compared with the end of last year, which was primarily due to divestments, and unrealised changes in value. Residential properties account for 84% of the portfolio's value, commercial properties for 9% and development properties for 7%. The total lettable area amounted to 342,800 square metres (359,700) and the rental value on 31 December amounted to SEK 622.4 million (626.6). The portfolio comprises 4,270 apartments (4,515).

Investments and sales

During the period, total investments amounted to SEK 348.7 million (1,001.2), of which SEK 0.0 million (643.2) pertained to acquisitions. Investments in new builds amounted to SEK 169.0 million (276.0), and mainly pertained to the new build project in Örby centrum. Last year, a new build project was also in progress in Upplands Väsby. Investments in completed and ongoing upgrades amounted to SEK 131.2 million (27.9). During the period, 72 (86) apartments were upgraded. Other investments includes items such as window replacements. During the period, properties were divested with an underlying property value of SEK 1,153.8 million.

Change in property value	SEK m
Property value, opening balance on 1 Jan 2023	15,695.5
+ Acquisitions	0.0
+ Investments in new builds	169.0
+ Investments in base upgrades	131.2
+ Other investments	48.6
- Sales	-1,153.8
+/- Unrealised changes in value	-1,322.8
Property value, closing balance on 31 Dec 2023	13,567.6

Property value

The Group's properties are recognised at fair value in line with level 3 under IFRS. As of 31 December 2023, parts of the portfolio were externally valued by Cushman & Wakefield, which corresponded to one quarter of the property portfolio's total value. The remainder of the property portfolio was valued internally. External valuations are conducted for all properties once each calendar year.

The valuations of investment properties use a cash-flow model with an individual assessment for each property's future earnings potential. The valuations are based on an analysis of completed property transactions for similar properties to assess market yield requirements.

Development properties are valued either as development rights or ongoing projects. Development rights are valued based on their assessed market value per square metre GFA. Ongoing projects are valued at their completed value less remaining investments and a risk deduction depending on the phase of the project.

The external valuations are normally conducted using a calculation period of ten years, the period from January 2024 to December 2033. For an assessment of residual value at the end of the calculation horizon, net operating income for 2034 has been calculated. A couple of the valuation objects comprise new build projects that are not liable for property tax for a period of 15 years from completion. For these properties, the calculation horizon has been extended to take this into account.

The internal valuation model is based on a residual value calculation supported by inputs from external valuations. Moreover, ongoing assessments are made of any other indications affecting the fair value of the properties, such as tenants vacating, notice of termination and significant changes in yield requirements.

In addition to assumed short-term inflation of 2.0% and assumed long-term inflation of 2.0%, the assessment of a property's future earnings capacity has also taken into consideration any changes in rent levels and occupancy rates.

Property-related key metrics	Jan–Dec 2023	Jan–Dec 2022
Rental value SEK/sq m	1,816	1,742
Economic occupancy rate, %	96.1	95.9
Property expenses, SEK/sq m	512	620
Net operating income, SEK/sq m	1,304	1,106
Property value, SEK/sq m	39,581	43,638
Lettable area at the end of the period, thousand sq m	343	359
Average valuation yield, %	3.3	2.9

Note 9 Right-of-use assets and lease liabilities

In accordance with IFRS 16 – Leases, the value of leaseholds is recognised as a right-of-use asset together with a corresponding lease liability. As of 31 December 2023, the total estimated value of the right-of-use assets and liabilities was SEK 375.7 million (345.2).

Financing

Note 10 Financing

John Mattson strives to keep financial risk low with a long-term LTV ratio that is not permitted to exceed 50% and a long-term interest coverage ratio of not less than 1.5.

Equity

As of 31 December, equity attributable to Parent Company shareholders totalled SEK 5,515.6 million (5,536.2), which corresponds to SEK 72.77 (146.09) per share. During the period, equity declined due to the loss for the year of SEK 1,255.9 Million (profit: 122.7) and increased through a new share issue of SEK 1,232.9 million (268.4) as well as transactions with non-controlling interests amounting to SEK 2.4 million.

Interest-bearing liabilities

John Mattson conducts its borrowing through banks using mortgage deeds as collateral. At the end of the period, John Mattson had credit agreements for SEK 7,380.5 million (9,412.0).

The credit volumes utilised at the end of the period amounted to SEK 7,192.6 million (8,923.8), of which SEK 6,083.9 million (6,363.9) was a non-current liability and SEK 1,108.8 million (2,559.9) was a current liability.

External borrowing during the period amounted to SEK 1,696.2 million (2,161.8). Loan repayments during the period amounted to SEK 3,427.7 million (2,584.5).

At the end of the period, net interest-bearing liabilities amounted to SEK 6,759.0 million (8,876.1), corresponding to an LTV ratio of 49.8% (56.6).

Disposable liquidity, which comprises unutilised overdraft facilities and cash balances, amounted to SEK 543.6 million (207.6) at the end of the period. Moreover, an unutilised construction credit of SEK 78.1 million is in place.

The average loan-to-maturity, including credit commitments, was 3.0 years (2.8) at the end of the period.

The average interest coverage ratio was a multiple of 1.6 (1.9) at the end of the period.

Fixed interest and interest-rate derivatives

The interest-rate maturity structure is allocated over time to ensure the stability of net financial items. John Mattson utilises derivatives in the form of interest-rate swaps to limit risk for floating-rate loans. Interest-rate swaps are measured at fair value using market interest rates at the end of the month. John Mattson uses interest-rate derivatives for the purpose of managing interest-rate risk and for achieving the desired fixed-interest

Fixed-interest and loan-to-maturity periods as of 31 December 2023

structure. Over time, this strategy entails value changes arising in the interest-rate derivatives, primarily as a result of changed market interest rates. John Mattson's derivatives are primarily affected by changes in long-term market interest rates. The fair value of interest-rate derivatives is calculated by discounting future cash flows based on each maturity's quoted market interest rate on the balance-sheet date. Future cash flows are calculated as the difference between the agreed fixed interest rate under the respective interest-rate derivative agreement and the Stibor for the respective period. Accordingly, future interest flows that arise in this manner are calculated at present value using the Stibor curve. John Mattson does not apply hedge accounting for derivative instruments. Assets and liabilities in these categories are measured continuously at fair value pursuant to IFRS 13 Level 2 with changes in value recognised in the consolidated income statement.

John Mattson has contracted interest-rate swaps to a nominal value of SEK5,932.6 million (4,788.6), corresponding to 85.2% (61.7) of interest-bearing liabilities with a floating rate (Stibor).

The contracted interest-rate swaps mature from 2025 to 2033. The market value of interest-rate derivatives at the end of the period was SEK 69.0 million (239.4). The amount will be gradually reversed and recognised in profit or loss up to the expiry dates of the derivatives, regardless of the interest-rate level. No hedge accounting is applied. For disclosure purposes, fair value for interest-bearing liabilities is calculated by discounting principals from future cash flows and by discounting interest payments to the current market interest rate. For 2023, fair value amounted to SEK 7,024.3 million (8,629.2).

John Mattson's average fixed-interest tenor, including interest-rate swaps, was 2.9 years (2.6) at the end of the period.

The average interest rate for the Group's total interest-bearing liability, including the effect of interest-rate swaps, was 3.43% (2.50) at the end of the period.

Note 11 Transactions with related parties

The Group's related parties include all Board Members and members of executive management as well as individuals and companies related to these parties. All transactions with related parties are conducted on commercial terms.

In May 2023, the Parent Company decided to take up a short-term promissory note loan of SEK580 million from the company's two largest shareholders. The loans were raised at a market interest rate corresponding to STIBOR three months +1.65%. The loans were repaid in full in the fourth quarter.

Fixed-interest period				Loan-to-maturity			Interest-rate swaps
Maturity	Volume (SEK m)	Average interest (%) 1)	Share (%)	Credit agree ments volume (SEK m)	Utilised, SEK m	Share (%)	Volume (SEK m)	Average interest rate (%) 2)
0–1 year	1,442.0	10.42%	20%	1,296.6	1,108.8	15%	0	–
1–2 years	721.3	-1.25%	10%	1,269.5	1,269.5	18%	1,883	–
2–3 years	1,537.9	1.48%	21%	1,744.9	1,744.9	24%	1,350	–
3–4 years	1,527.0	2.46%	21%	970.9	970.9	13%	1,400	–
4–5 years	1,215.6	2.09%	17%	995.4	995.4	14%	600	–
>5 years	749.0	2.67%	10%	1,103.2	1,103.2	15%	700	–
Total	7,192.6	3.43%	100%	7,380.5	7,192.6	100%	5,932.6	-1.84%

1) Average interest rate at the end of the period including derivatives. The average interest rate for the period until the end of the first year includes the credit margin for all floating rate loans and, accordingly, the average interest rate does not reflect the actual interest rate on borrowing. The average interest rate excluding construction credits was 3.24%.

2) Volume-weighted average interest for interest-rate derivatives.

Condensed consolidated cash-flow statement

Operating activities EBT -520.7 -207.7 -1,394.6 193.4 Adjustment for non-cash items Change in property values 370.7 210.8 1,357.4 225.1 Change in value of interest-rate derivatives 180.8 10.5 170.4 -264.6 Depreciation and disposals 1.1 1.4 3.5 3.9 Other non-cash items, etc. -1.0 1.8 -1.3 1.5 Taxes paid 7.2 9.1 0.1 -0.2 Cash flow from operating activities before changes in working capital 38.2 25.9 135.5 159.1 Cash flow from changes in working capital Change in operating receivables -18.7 15.8 -25.9 8.9 Change in operating liabilities 37.0 -16.1 36.1 -172.6 Cash flow from operating activities 56.5 25.6 145.7 -4.6 Investing activities Investments in equipment -1.9 -1.7 -4.5 -5.4 Net acquisition of investment properties 1) -263.9 Investments in investment properties -61.8 -107.3 -348.6 -358.0 Divestments of non-current assets 349.9 1,119.4 874.9 Cash flow from investing activities 286.2 -109.0 766.3 247.6 Financing activities New share issue 1,228.3 1,228.3 Acquisition of minority holdings -22.9 Borrowings 890.7 465.2 1,696.2 2,161.8 Repayments of borrowings -2,060.1 -443.7 -3,427.7 -2,584.5 Cash flow from financing activities 58.9 21.5 -526.0 -422.8 Cash flow for the period 401.6 -61.9 386.0 -179.8 Opening balance, cash and cash equivalents 32.0 109.6 47.6 227.5 Closing balance, cash and cash equivalents 433.6 47.6 433.6 47.6	Amounts in SEK m	Oct–Dec 2023	Oct–Dec 2022	Jan–Dec 2023	Jan–Dec 2022

1) Consolidated additional cash-flow statement disclosures

Acquisition of investment properties in corporate wrappers:

Amounts in SEK m	Oct–Dec 2023	Oct–Dec 2022	Jan–Dec 2023	Jan–Dec 2022
Investment properties				643.2
Operating receivables				5.7
Cash and cash equivalents				6.8
Deferred tax assets, accrual reserves
Assumed operating liabilities				-116.6
Assumed interest-bearing liabilities
Less: Previously recognised participation in profits of associates
Net assets acquired				539.0
Non-cash issue *				-268.4
Acquired non-controlling interest
Purchase price paid				270.7
Less: Cash and cash equivalents in acquired operations				-6.8
Net impact on cash and cash equivalents (positive = decrease)				263.9

* In the second quarter of 2022, a debt attributable to an acquisition completed in the first quarter of 2022 was offset and converted to equity. No acquisitions took place in the January–December 2023 period.

Financial information

Parent Company

The operations of the Parent Company, John Mattson Fastighetsföretagen AB (publ) with corporate identification number 556802-2858, primarily encompass shared Group services pertaining to strategy, communication, business development and accounting/finance.

Condensed Parent Company income statement

Amounts in SEK m	Oct–Dec 2023	Oct–Dec 2022	Jan–Dec 2023	Jan–Dec 2022
Revenue	5.8	3.6	11.5	13.9
Central administration costs	-5.2	-12.7	-28.4	-43.5
EBIT	-0.6	-9.1	-16.8	-29.6
Result from participations in Group companies	-258.7		-114.3
Net interest	-29.4	-21.3	-122.2	-60.6
Profit/loss after financial items	-287.5	-30.3	-253.4	-90.3
Appropriations	60.4	29.8	60.4	29.8
EBT	-227.1	-0.6	-192.9	-60.5
Tax	-4.6	-4.2	-6.7
Profit/loss for the period	-231.6	-4.8	-199.6	-60.5

Condensed Parent Company balance sheet

Amounts in SEK m	31 Dec 2023	31 Dec 2022
Assets
Plant and equipment	1.2	0.9
Participations in Group companies	5,257.3	5,320.5
Deferred tax assets	0.9	3.0
Receivables from Group companies	1,178.9	323.6
Current receivables from Group companies	342.6
Other current receivables	9.8	11.5
Cash at bank and in hand	433.4	4.7
Total assets	7,224.2	5,664.2
Equity and liabilities
Equity	2,878.9	1,845.7
Provisions	0.3
Non-current liabilities to credit institutions		475.0
Liabilities to Group companies	2,710.6	1,896.3
Current liabilities to Group companies	1,617.4	534.5
Current liabilities to credit institutions		893.1
Other current liabilities	16.9	19.6
Total equity and liabilities	7,224.2	5,664.2

Opportunities and risks in the Group and Parent Company

John Mattson has a stable cash flow from operating activities with 82% of the lettable area comprising residential properties in attractive locations in the Stockholm region. It is the company's assessment that demand for rental properties in these locations will remain high.

Opportunities and risks in cash flow

Of John Mattson's total rental revenues, around 75% is generated by residential tenants. The vacancy rate is low and rents are relatively secure and predictable. John Mattson's properties are located in attractive areas with healthy demand in the Stockholm region.

The main operating expenses for John Mattson are for media, which include electricity, heat and water. Electricity costs have been more volatile compared with previous periods.

John Mattson has stable cash flow from operating activities before changes in working capital.

Interest expenses are one of John Mattson's single largest expenses and are impacted by changes in market interest rates, whereby rising market interest rates over time are normally an effect of economic growth and rising inflation. Accordingly, the interest-bearing borrowing means that John Mattson is exposed to interest-rate risk, among other risks.

Full-year effect, next 12 months, SEK m	Change +/-	Impact on income from property management
Rent level	5%	+/-31.1
Economic occupancy rate	1 percentage point	+/-6.2
Property expenses	5%	+/-8.8
Underlying market interest rate	1 percentage point	-35.8/+27.1

Opportunities and risks with property values

John Mattson initially recognises its properties at fair value with changes in value recognised in profit or loss. This entails increased volatility, primarily for earnings, but also for the financial position.

The market value of properties is determined by market supply and demand. The properties' values are based on their expected future net operating income and yield requirements. A higher net operating income or lower yield requirement has a positive impact on the value. A lower net operating income or higher yield requirement has a negative impact on the value. The impact of a percentage change in property value on the LTV ratio is illustrated below.

Sensitivity analysis, Loan-to-value (LTV) ratio, %	-20%	-10%	0%	+10%	+20%
Change in value, SEK m	-2,714	-1,357		1,357	2,714
Loan-to-value (LTV) ratio, %	62.3	55.4	49.8	45.3	41.5

The effect on property value of a change in input data is illustrated below.

Sensitivity analysis, fair value SEK m		31 Dec 2023	31 Dec 2022
Rent/Market rent	+/-1.0%	181.7	342.5
Housing		167.1	302.3
Commercial		14.6	40.3
Property expenses	+/-SEK50 sq m	509.3	651.0
Housing		481.5	597.7
Commercial		27.8	53.3
Long-term vacancy rate	+/-2.0%	365.5	688.1
Housing		335.7	606.5
Commercial		29.8	81.6
Yield requirement, exit	-0.5%	2,310.3	2,788.5
Housing		2,178.6	2,517.5
Commercial		131.7	271.0
Yield requirement, exit	+ 0.5%	-1,735.4	-2,905.5
Housing		-1,625.7	-2,646.5
Commercial		-109.7	-259.0
Cost of capital1)	-0.5%	542.9	677.6
Housing		498.1	626.0
Commercial		44.7	51.7
Cost of capital1)	+0.5%	-514.3	-641.0
Housing		-471.7	-591.8
Commercial		-42.7	-49.2

1) The cost of capital sensitivity analysis has been calculated through application of the relative change calculated for the externally valued portion of the portfolio.

Financial risk

John Mattson aims for low financial risk. The risk is limited with a long-term net LTV ratio that is not permitted to exceed 50% and a long-term interest coverage ratio of not less than 1.5. At the end of the period, the loan-to-value ratio was 49.8% (56.6). The interest coverage ratio for the period was a multiple of 1.6 (2.2). Access to external funding is one of the key risk parameters that the company has to manage. This is kept in check through access to disposable liquidity, in addition to a low LTV ratio.

Disposable liquidity, which comprises unutilised overdraft facilities and cash balances, amounted to SEK 543.6 million (202.7) at the end of the period. Moreover, an unutilised construction credit of SEK 78.1 million is in place for future financing needs. The company's volume-weighted average loan-to-maturity amounted to 3.0 years (2.8) at the end of the period. To limit the company's exposure to increasing interest rates, agreements concerning interest-rate swaps have been concluded with banks for a nominal amount of SEK 5,932.6 million (4,788.6), representing 85.2% (61.7) of interest-bearing liabilities with a floating interest rate (Stibor).

Sustainability risks

John Mattson's sustainability agenda is integrated into the company's business model. Sustainability-related risks that are deemed the most material for the company's development are social conditions, negative environmental impact and climate change as well as issues related to the company's code of conduct and employees.

John Mattson works pursuant to long-term sustainability targets, including science-based climate targets, for each of the company's four focus areas in sustainability. The sustainability targets are to steer the company's operations toward more sustainable development and contribute to achieving the vision of "Great neighbourhoods across generations."

John Mattson takes an overall approach towards buildings as well as outdoor areas to create safe, attractive and sustainable neighbourhoods and local communities. The company is committed to engaging in social issues and to working together with municipalities, the police, other property owners and organisations on safety issues and works systematically to prevent improper rental conditions.

With the aim of reducing negative impacts on the environment across all components of the properties' life cycle, and increasing positive ones, John Mattson focuses strongly on responsible material and waste management as well as energy-efficient and fossil-free solutions. The company is committed to reducing carbon dioxide emissions in line with the Paris Agreement and has conducted climate mapping as well as drawn up a roadmap to achieve the science-based climate targets.

John Mattson works proactively to promote a healthy, safe and stimulating work environment for employees and suppliers. The code of conduct and supplemental policies implemented for all employees are reviewed annually, moreover, the company's core values are continuously reinforced with the involvement of all employees. John Mattson has a clear process for performance appraisals and works systematically to prevent accidents and work-related illness.

In 2023, the organisation has added resources in the environment area to be able to deliver on the sustainability targets.

Uncertainties – Turbulent operating environment

Continued uncertainty in the operating environment, together with financial volatility and uncertainty regarding trends for inflation and interest rates, means that the company must continuously analyse changes in its operational and financial risks and, if necessary, act proactively to manage these risks.

In the fourth quarter, John Mattson completed a fully subscribed new issue of shares for approximately SEK 1,250 million, and thereby strengthened the company's financial position.

Other information

Accounting policies

This condensed interim report for the Group has been prepared in accordance with IAS 34 Interim Financial Reporting together with the appropriate provisions of the Annual Accounts Act. The accounting and measurement policies applied remain unchanged from the annual report.

John Mattson monitors the business as a single unit whose earnings in their entirety are reported to and evaluated by the CODM. Accordingly, the Group only reports one segment.

New standards and interpretations

New and amended standards approved by the EU and interpretations are currently not considered to have a significant impact on John Mattson's earnings or financial position.

Parent Company

The Parent Company's accounting policies adhere to the Annual Accounts Act and the Swedish Financial Reporting Board Recommendation RFR 2 Accounting for Legal Entities. For further information on the accounting policies, please refer to the Group's 2022 Annual Report, which is available on John Mattson's website.

Significant events after the end of the period

■ No significant events have taken place after the end of the period.

Lidingö, 16 February 2024

Per-Gunnar (P-G) Persson Johan Ljungberg Håkan Blixt Chairman of the Board Vice chairman Member of the Board

Katarina Wallin Åsa Bergström

Per Nilsson, CEO Chief Executive Officer

Ingela Lindh Christer Olofsson Board Member Board Member

Board Member Board Member

This year-end report has not been reviewed by the company's auditors.

The John Mattson share

John Mattson's shares are listed on Nasdaq Stockholm, Mid Cap. As of 31 December 2023, the market capitalisation was SEK2.3 billion.

John Mattson's share was listed on Nasdaq Stockholm, Mid Cap as of 5 June 2019. The share price in conjunction with the listing was SEK 90 and the closing price on 31 December 2023 was SEK 56.90. The lowest closing price in the quarter was SEK 40.50, recorded on 1 November. The highest closing price in the quarter was SEK 57.50, recorded on 22 December.

Over the quarter, stock turnover on Nasdaq Stockholm amounted to 2,823,435 shares with a combined value of SEK 146.3 million, representing an annualised stock turnover of 15.9%. Nasdaq Stockholm accounted for 94.0% of all trading in John Mattson shares.

John Mattson has one class of shares and each share entitles the holder to one vote.

In the fourth quarter, John Mattson completed a fully subscribed new issue of shares for approximately SEK 1,250 million.

Net asset value

NAV decreased 0.4% compared with 31 December 2022 and totalled SEK 5,515.6 million (5,536.2). Following the new share issue, NAV amounted to SEK 72.77 per share (146.09) at the end of the period. NNNAV amounted to SEK 6,062.9 million (6,142.3) or SEK 80.0 per share (162.08) at the end of the period, following deductions for the estimated actual deferred tax liability of 6%.

Dividend policy

Over the long term, dividends are to amount to 50% of annual income from property management after taking into consideration the company's investment plans, consolidation needs, liquidity and overall financial position.

Dividends may be less than the long-term target or be fully absent.

Main shareholders on 31 December 2023

The table below presents the owners with a shareholding in John Mattson exceeding 3% together with other shareholders.

	No. of shares	Percentage
AB Borudan Ett	28,702,110	37.9%
Tagehus Holding AB	9,873,564	13.0%
Carnegie Fonder	6,720,000	8.9%
Prior & Nilsson Fonder	3,242,678	4.3%
Bergamotträdet 9 Holding AB	3,064,276	4.0%
Other shareholders1)	24,191,302	31.9%
Total	75,793,930	100.00%
Of which, foreign shareholders	7,768,878	10.3%

Source: Consolidated and compiled data from Euroclear/Modular Finance

1) Other shareholders include Fidelity Investments (FMR) since reliable data on its shareholding had not been received as of 31 December 2023. At the end of the third quarter, FMR's holding was 3.9%.

Net asset value

	31 Dec 2023		31 Dec 2022
	SEK m	SEK/ share	SEK m	SEK/ share
Equity attributable to Parent Company shareholders, according to balance sheet	5,515.6	72.77	5,536.2	146.09
Add back
Derivatives according to balance sheet	-69.0	-0.91	-239.4	-6.32
Deferred tax liability in balance sheet	1,154.2	15.2	1,298.0	34.25
NAV	6,600.8		87.09 6,594.8	174.02
Less:
Derivatives according to balance sheet	69.0	0.91	239.4	6.32
Estimated actual deferred tax liability	-607.0	-8.01	-691.9	-18.26
NNNAV	6,062.9		80.0 6,142.3	162.08

Share-related key metrics

	Jan–Dec 2023	Jan–Dec 2022
Income from property management, SEK/share	3.37	4.10
Growth in income from property management, SEK/share, %	-17.9	37.6
Profit after tax attributable to Parent Company shareholders, SEK/share	-31.75	3.30
NAV, SEK/share	87.09	174.02
Growth in NAV, SEK/share, %	-50.0	-1.1
NNNA V, SEK/share	79.99	162.08
Equity attributable to Parent Company shareholders, SEK/share	72.77	146.09
Market capitalisation at the end of the period, SEK/share	60.00	83.10
Market capitalisation (SEK/share)/NAV, SEK/share at the end of the period	0.69	0.48
Average No. of shares during the period	39,556,335 37,537,496
No. of shares outstanding at the end of period	75,593,930 37,896,965

Development of share capital

Year	Event	Changes in No. of shares1, 2)	Total No. of shares	Change in share capital (SEK)	Share capital (SEK)	Quotient value (SEK)
	2010 Founded	1,000	1,000	100,000	100,000	100
	2011 Bonus issue		1,000		9,900,000 10,000,000	10,000
2018	Share split 10,000:1		9,999,000 10,000,000		10,000,000	1
	2018 New share issue		1,223,344 11,223,344		1,223,344 11,223,344	1
	2019 Share split 3:1	22,446,688 33,670,032			11,223,344	0.33
	2021 Non-cash issue		2,694,795 36,364,827		898,265 12,121,609	0.33
	2022 Non-cash issue		672,208 37,037,035		224,069 12,345,678	0.33
	2022 Non-cash issue		859,930 37,896,965		286,643 12,632,321	0.33
	2023 New share issue		37,896,965 75,593,930 12,632,321 25,264,642			0.33

2) As of 31 December 2023, the quotient value of the shares was SEK 0.33 per share (0.33).

Key metrics

Key metrics	Oct–Dec 2023	Oct–Dec 2022	Jan–Dec 2023	Jan–Dec 2022
Property-related key metrics
Surplus ratio during the period, %	69.4	55.8	71.6	64.1
Economic occupancy rate at the end of the period, %	96.1	95.9	96.1	95.9
Rental value at the end of the period, SEK m	622.4	626.6	622.4	626.6
Rental value, apartments, at the end of the period, SEK/sq m	1,664	1,610	1,664	1,610
Lettable area at the end of the period, thousand sq m	342.8	359.7	342.8	359.7
Investments in new builds, extensions and redevelopments, SEK m	61.9	107.3	348.7	358.0
Investments – acquisitions, SEK m	0.0	0.0	0.0	643.2
Property value at the end of the period, SEK m	13,567.6	15,695.5	13,567.6	15,695.5
Property value, at the end of the period, SEK/sq m	39,581	43,638	39,581	43,638
Total number of apartments	4,270	4,515	4,270	4,515
No. of upgraded apartments during the period	9	10	72	86
Key financial metrics
Rental revenues, SEK m	146.3	151.9	610.4	620.9
Net operating income, SEK m	101.5	84.8	437.3	397.8
Income from property management, SEK m	30.7	13.5	133.2	153.9
Earnings after tax for the period	-452.6	-188.3	-1,255.3	122.7
Average interest rate at the end of the period, %	3.43	2.54	3.43	2.54
LTV ratio at the end of the period, %	49.8	56.6	49.8	56.6
Interest coverage ratio during the period, multiple	1.6	1.3	1.6	1.9
Fixed-interest tenor, at the end of the period, years	2.9	2.6	2.9	2.6
Loan-to-maturity at the end of the period, years	3.0	2.8	3.0	2.8
NAV, SEK m	6,600.8	6,594.8	6,600.8	6,594.8
NNNA V, SEK m	6,062.9	6,142.3	6,062.9	6,142.3
Share-related key metrics
Income from property management, SEK/share	0.69	0.36	3.37	4.10
Growth in income from property management, SEK/share, %	93.2	-43.3	-17.9	37.6
Profit after tax attributable to Parent Company shareholders, SEK/share	-10.18	-4.91	-31.75	3.30
NAV, SEK/share	87.09	174.02	87.09	174.02
Growth in NAV, SEK/share, %	-50.0	-1.1	-50.0	-1.1
NNNA V, SEK/share	79.99	162.08	79.99	162.08
Equity attributable to Parent Company shareholders, SEK/share	72.77	146.09	72.77	146.09
Market capitalisation at the end of the period, SEK/share	56.90	83.10	56.90	83.10
Average No. of shares during the period	44,480,336	37,896,965	39,556,335	37,537,496
No. of shares outstanding at the end of period	75,793,930	37,896,965	75,593,930	37,896,965

Definitions of key metrics are provided on page 25.

Definitions

John Mattson Fastighetsföretagen AB (publ) applies the European Securities and Markets Authority's (ESMA) Guidelines on Alternative Performance Measures (APMs). Under these Guidelines, an APM is a financial measure of historic or projected earnings trends, financial position, financial performance or cash flows that are neither defined nor specified in applicable rules for financial reporting, such as IFRS and the Swedish Annual Accounts Act.

Key metrics	Definition	Objective
NNNAV, SEK/share	Net asset value (NAV) excluding interest-rate derivatives and estimated actual tax liability at the end of the period divided by shares outstanding on the balance-sheet date.	Used to illustrate John Mattson's current net asset value per share in a manner compatible with other listed companies.
NNNAV, SEK m	NAV excluding interest-rate derivatives and estimated actual tax liability at the end of the period.	An established metric for the Group's net asset value that facilitates analyses and comparison.
LTV ratio at the end of the period, %	Interest-bearing liabilities, excluding lease liabilities for leasehold properties, less cash and cash equivalents as a percentage of the carrying amount for the properties at the end of the period.	Used to illustrate John Mattson's financial risk and shows how large a share of the operations is mortgaged with interest bearing liabilities. This metric facilitates comparability with other property companies.
Residential properties	Residential property pertains to property that primarily consists of housing, but where a portion of the lettable area may also include other premises and garages.	Not an alternative performance measure.
Equity, SEK/share	Recognised equity attributable to Parent Company shareholders divided by the number of shares outstanding on the balance-sheet date.	This metric shows how large a share of John Mattson's recognised shareholders' equity that each share represents.
Economic occupancy rate at the end of the period, %	Annualised contracted rents in relation to contracted rents plus annualised discounts and vacancies at the end of the period.	This metric facilitates assessment of John Mattson's efficiency at using the floor area in its investment properties.
Property expenses, SEK m	This item includes direct property expenses, such as costs for operations, maintenance and property taxes, as well as indirect property expenses in the form of lettings and property administration.	Not an alternative performance measure.
Property value, at the end of the period, SEK/sq m	The fair value of properties excluding ongoing projects divided by lettable area for properties owned at the end of the period.	Used to illustrate John Mattson's average property value per sq m.
Income from property management, SEK m	Profit excluding value changes and tax.	This metric facilitates increased understanding of John Mattson's profit generation.
Income from property management, SEK/share	Earnings excluding value changes and tax divided by the average number of shares outstanding during the period.	This metric facilitates increased understanding of the trend in income from property management taking shares outstanding into account.
Average economic occupancy rate, %	Rental revenues for the period in relation to the period's gross rents.	This metric is used to measure John Mattson's efficiency during the period at using the floor area in its investment properties.
Average economic occupancy rate, apartments, %	Residential rental revenue for the period in relation to gross rents during the period.	This metric is used to measure John Mattson's efficiency during the period at using the residential floor area in its investment properties.
Average interest rate at the end of the period, %	Weighted average contractual interest rate for all credits in the debt portfolio, including interest-rate derivatives, excluding liabilities and interest rates pertaining to IFRS 16 Leases.	Used to illustrate John Mattson's financial risk.
Rental value, apartments, at the end of the period, SEK/sq m	Annualised contractual residential floor area plus the value of vacancies and discounts at period-end divided by lettable residential floor area for properties owned at the end of the period.	Used to illustrate John Mattson's revenue potential in respect of housing, per square metre.
Rental value at the end of the period, SEK m	Annualised contractual rent plus the annualised value of vacancies and discounts at the end of the period.	Used to illustrate John Mattson's revenue potential.
Contract value at the end of the period, SEK m	This item pertains to contracted annual rents for properties owned at the end of the period.	Not an alternative performance measure.
NAV, SEK m	Recognised equity attributable to Parent Company shareholders, adding back interest-rate derivatives and deferred tax.	An established metric for the Group's net asset value that facilitates analyses and comparison.
NAV, SEK/share	Recognised equity attributable to Parent Company shareholders, adding back interest-rate derivatives and deferred tax, and divided by the number of shares outstanding on the balance-sheet date.	Used to illustrate John Mattson's long-term net asset value per share in a manner compatible with other listed companies.
Net interest-bearing liabilities at the end of the period, SEK m	Interest-bearing liabilities, excluding lease liabilities for leasehold properties, less cash and cash equivalents at the end of the period.	Used to illustrate John Mattson's level of debt.
Interest coverage ratio during the period, multiple	Income from property management before value changes with the addition of interest expenses in relation to interest expenses excluding ground rents recognised as an interest expense under IFRS 16.	This metric is used to illustrate how sensitive John Mattson's earnings are to changes in interest rates; i.e. it shows how many times the company could pay the interest it incurs using profit from business operations.
Surplus ratio, %	Net operating income for the period as a percentage of recognised rental revenues.	Used to illustrate the proportion of John Mattson's revenue that remains after deducting property expenses. This metric is an efficiency ratio that is comparable over time and also between property companies.

Reconciliation tables

		Oct–Dec 2023	Oct–Dec 2022	Jan–Dec 2023	Jan–Dec 2022
NNNAV, SEK/share
A	NNNA V at the end of the period, SEK m	6,062.9	6,142.3	6,062.9	6,142.3
B	Number of shares outstanding at the end of the period, thousand	75,794	37,897	75,794	37,897
A/B	NNNAV, SEK/share	79.99	162.08	79.99	162.08
	LTV ratio at the end of the period, %
	Interest-bearing debt, excluding lease liabilities for leasehold properties, at the end
A	of the period according to balance sheet, SEK m	7,192.6	8,923.8	7,192.6	8,923.8
B	Cash and cash equivalents at the end of the period according to balance sheet, SEK m	433.6	47.6	433.6	47.6
C	Investment properties according to balance sheet at the end of the period, SEK m	13,567.6	15,695.5	13,567.6	15,695.5
(A-B)/C	LTV ratio at the end of the period, %	49.8	56.6	49.8	56.6
Equity, SEK/share
A	Equity attributable to Parent Company shareholders at the end of the period, SEK m	5,513.4	5,536.2	5,515.6	5,536.2
B	Number of shares outstanding at the end of the period, thousand	75,794	37,897	75,794	37,897
A/B	Equity, SEK/share	72.74	146.09	72.77	146.09
	Economic occupancy rate at the end of the period, %
A	Annualised contract value at the end of the period, SEK m	598.1	601.0	598.1	601.0
B	Annualised vacancy value at the end of the period, SEK m	24.3	25.6	24.3	25.6
A/(A+B)	Economic occupancy rate during the period, %	96.1	95.9	96.1	95.9
	Property value, at the end of the period, SEK/sq m
A	Investment properties according to balance sheet at the end of the period, SEK m	13,567.6	15,695.5	13,567.6	15,695.5
B	Lettable area at the end of the period, thousand sq m	342.8	359.7	342.8	359.7
A/B	Property value, at the end of the period, SEK/sq m	39,581	43,638	39,581	43,638
	Income from property management, SEK/share
A	Income from property management during the period, SEK m	30.7	13.5	133.2	153.9
B	Average number of shares outstanding during the period, thousand	44,480	37,897	39,556	37,537
A/B	Income from property management, SEK/share	0.69	0.36	3.37	4.10
	Income from property management, SEK m
A	Profit/loss for the period	-452.6	-188.3	-1,255.3	122.7
B	Current and deferred tax	-68.2	-19.4	-139.3	70.7
C	Change in value of investment properties and interest-rate derivatives	-551.9	-221.3	-1,528.2	39.5
D	Participation in profits of associates				–
A+B-C-D	Income from property management, SEK m	30.7	13.5	133.2	153.9
	Average interest rate at the end of the period, %
A	Annualised interest expense, excluding interest under IFRS 16 Leases, at the end of the period, SEK m	247.0	227.1	247.0	227.1
B	Interest-bearing debt, excluding lease liabilities under IFRS 16 Leases, at the end of the period according to balance sheet, SEK m	7,192.6	8,923.8	7,192.6	8,923.8
A/B	Average interest rate at the end of the period, %	3.4	2.5	3.4	2.5

A	Rental value at the end of the period, SEK m Annualised contract value at the end of the period, SEK m	598.1	601.0	598.1	601.0
B	Annualised vacancy value at the end of the period, SEK m	24.3	25.6	24.3	25.6
A+B	Rental value at the end of the period, SEK m	622.4	626.6	622.4	626.6

	Rental value, apartments, at the end of the period, SEK/sq m
A	Annualised contract value, apartments, at the end of the period, SEK m	463.5	464.1	463.5	464.1
B C	Annualised vacancy value, apartments, at the end of the period, SEK m Lettable area of apartments at the end of the period, thousand sq m	3.0 280.3	13.7 296.8	3.0 280.3	13.7 296.8
(A+B)/C	Rental value, apartments, at the end of the period, SEK/sq m	1,664	1,610	1,664	1,610

NAV, SEK/share
A	NAV at the end of the period, SEK m	6,600.8	6,594.8	6,600.8	6,594.8
B A/B	Number of shares outstanding at the end of the period, thousand NAV, SEK/share	75,794 87.09	37,897 174.02	75,794 87.09	37,897 174.02

Other information

		Oct–Dec 2023	Oct–Dec 2022	Jan–Dec 2023	Jan–Dec 2022
	NAV and NNNAV, SEK m
A	Equity attributable to Parent Company shareholders at the end of the period, SEK m	5,515.6	5,536.2	5,515.6	5,536.2
B	Derivatives according to the balance sheet at the end of the period, SEK m	-69.0	-239.4	-69.0	-239.4
C	Deferred tax liabilities according to the balance sheet at the end of the period, SEK m	1,154.2	1,298.0	1,154.2	1,298.0
A+B+C=D	NAV, SEK m	6,600.8	6,594.8	6,600.8	6,594.8
B	Derivatives according to the balance sheet at the end of the period, SEK m	69.0	239.4	69.0	239.4
E	Estimated actual deferred tax liability at the end of the period, SEK m	-607.0	-691.9	-607.0	-691.9
D-B-E	NNNAV, SEK m	6,062.9	6,142.3	6,062.9	6,142.3
	Net interest-bearing liabilities at the end of the period, SEK m
A	Annualised interest-bearing liabilities, excluding lease liabilities for leasehold properties, at the end of the period, SEK m	7,192.4	8,923.8	7,192.4	8,923.8
B	Cash and cash equivalents at the end of the period, SEK m	433.6	47.6	433.6	47.6
A-B	Net interest-bearing liabilities at the end of the period, SEK m	6,759.0	8,876.1	6,759.0	8,876.1
	Interest coverage ratio during the period, multiple
A	Income from property management during the period according to income statement, SEK m 1)	31.7	13.5	136.2	153.9
B	Financial expenses during the period, excluding ground rents recognised as an interest expense under IFRS 16, SEK m	52.7	53.4	241.1	173.9
(A+B)/B	Interest coverage ratio during the period, multiple 1)	1.6	1.3	1.6	1.9
	Growth in income from property management, SEK/share, %
A	Income from property management, SEK/share during the period	0.69	0.36	3.37	4.10
B	Income from property management, SEK/share during the preceding period	0.36	0.63	4.10	2.98
(A-B)/B	Growth in income from property management, SEK/share, %	93.2	-43.3	-17.9	37.6
	Growth in NAV, SEK/share, %
A	NAV at the end of the period, SEK/share	87.06	174.02	87.06	174.02
B	NAV at the end of preceding 12-month period, SEK/share	174.02	175.90	174.02	175.90
(A-B)/B	Growth in NAV, SEK/share, %	-50.0	-1.1	-50.0	-1.1
	Surplus ratio during the period, %
A	Net operating income during the period according to income statement, SEK m	101.5	84.8	437.3	397.8
B	Rental revenues during the period according to income statement	146.3	151.9	610.4	620.9
A/B	Surplus ratio during the period, %	69.4	55.8	71.6	64.1

1) Income from property management and the interest coverage ratio for the period have been calculated excluding non-recurring costs of SEK 3.0 million.

Contact information and calendar

Financial calendar

2023 Annual Report: 22–28 March 2024 2024 Annual General Meeting: 18 April 2024 Interim report January–March 2024: 25 April 2024 Interim report January–June 2024: 12 July 2024 Interim report January–September 2024: 31 October 2024

Information

You can download and subscribe to press releases and interim reports on John Mattson's website.corporate.johnmattson.se

Per Nilsson, CEO [email protected] Tel: +46 (0)8-613 35 02

Eva Wiklund, acting CFO [email protected] Tel: +46 (0)73-077 81 75

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John Mattson Fastighetsföretagen

3066_10-k_2024-02-16_ee9bee80-5768-49ca-95f1-cfdbb91c3185.pdf

January–December 20231)

October–December 20231)

Great neighbourhoods across generations

Significant events during the fourth quarter

Key metrics Q4 2023 versus Q4 20221)

Strong company and positive outlook

Rapid transition and strong balance sheet

We deliver within sustainability

Positive outlook

Business idea, goals and strategies

Strategies

Financial targets

Sustainability targets

Dynamic and safe local communities

Targets

Energy-efficient and fossil-free solutions

Targets

Healthy and inspiring workplaces

Targets

Sustainability targets and fulfilment

Property portfolio

John Mattson is a property company with operations in the Stockholm region. The company is listed on Nasdaq Stockholm, Mid Cap.

Our areas

Lidingö

SHARE OF LETTABLE AREA

North Stockholm

SHARE OF LETTABLE AREA

City/Bromma

SHARE OF LETTABLE AREA

South Stockholm/Nacka

SHARE OF LETTABLE AREA

Development projects

Current earnings capacity

Condensed consolidated income statement

January to December 2023 period

Note 1 Income from property management

Note 2 Revenue

Note 3 Property expenses

Note 4 Central administration costs

Note 5 Net financial items

Note 6 Changes in value

Financial information

Note 7 Tax

Condensed consolidated balance sheet

Condensed consolidated statement of changes in equity

Balance sheet on 31 December 2023

Note 8 Investment properties

Investments and sales

Property value

Note 9 Right-of-use assets and lease liabilities

Financing

Note 10 Financing

Equity

Interest-bearing liabilities

Fixed interest and interest-rate derivatives

Note 11 Transactions with related parties

Condensed consolidated cash-flow statement

Acquisition of investment properties in corporate wrappers:

Parent Company

Condensed Parent Company income statement

Condensed Parent Company balance sheet

Opportunities and risks in the Group and Parent Company

Opportunities and risks in cash flow

Opportunities and risks with property values

Financial risk

Sustainability risks

Uncertainties – Turbulent operating environment

Accounting policies

New standards and interpretations

Parent Company

Significant events after the end of the period

The John Mattson share

Net asset value

Dividend policy

Main shareholders on 31 December 2023

Net asset value

Share-related key metrics