Logistea

Quarterly Report • Oct 25, 2024

Interim Report January - September

Q3 2024

Significantly stronger balance sheet and key figures

Summary period January – September 2024 Summary quarter July – September 2024

• Income increased by 67 per cent and amounted to SEK 465 million (278).
• Net operating income increased by 83 per cent to SEK 385 million (210).
• Profit from property management amounted to SEK 157 million. Profit from property management, excluding transaction costs related to the business combination with KMC Properties ASA ("KMCP"), increased by 106 per cent to SEK 169 million (82).
• Profit before tax amounted to SEK 209 million (114), with positive impact from property value changes of SEK 144 million (20).
• Earnings per share amounted to SEK 0.6 (0.6).
• Net asset value per share increased to SEK 15.0 (13.2).
• On July 11, Logistea expanded its property portfolio by acquiring 72 properties across eight countries from KMCP. The transaction means that Logistea's rental value increased by approx. SEK 513 million and the property value increased by approx. SEK 6.9 billion. In connection with the acquisition, a total of 230,815,283 ordinary shares in Logistea were issued as consideration, corresponding to a purchase price of SEK 3,449 million.

• During the period, in addition to KMCP's property portfolio, a total of four properties with a total property value of SEK 649 million were acquired.

• Income increased by 174 per cent and amounted to SEK 244 million (89).

• Net operating income increased by 204 per cent to SEK 219 million (72).
• Profit from property management amounted to SEK 90 million. Profit from property management, excluding transaction costs related to the business combination with KMCP, increased by 206 per cent to SEK 92 million (30).
• Profit before tax amounted to SEK 7 million (94), with positive impact from property value changes of SEK 23 million (64).
• Earnings per share amounted to SEK 0.0 (0.4).
• During the quarter, Logistea's Class B share was included in EPRA's (European Real Estate Association) equity index, a leading stock index for listed real estate companies.
• In September, following the business combination with KMCP, Logistea updated its financial targets and risk limits.

	Jan-Sep		Jul-Sep		Oct-Sep	Jan-Dec
MSEK	2024	2023	2024	2023	2023/2024	2023
Income	465	278	244	89	558	371
Net operating income	385	210	219	72	451	276
Profit from property management*	157	82	90	30	182	107
Result of the period for continuing operations	178	87	17	72	84	-8
Property value	13,101	4,996	13,101	4,996	13,101	5,386
Wault, years	9.7	7.8	9.7	7.8	9.7	7.9
Occupancy rate, economic, %	97.4	96.3	97.4	96.3	97.4	95.7
Yield, %	6.9	6.0	6.9	6.0	6.9	6.3
Equity ratio, %	45.3	46.7	45.3	46.7	45.3	48.6
Loan to value (LTV), %	48.5	42.7	48.5	42.7	48.5	45.5
Interest cover ratio, 12 month average, times	2.0	1.9	2.0	1.9	2.0	1.9
NRV per ordinary share A and B, SEK	15.0	16.3	15.0	16.3	15.0	13.2
Profit from property mgmt per ordinary share A and B, SEK	0.5	0.5	0.2	0.2	0.7	0.6
Earnings per ordinary share A and B, SEK	0.6	0.6	0.0	0.4	0.3	0.0

^*Profit from property management includes transaction costs of SEK 12 million, incurred in Q2-Q3 2024, attributable to the business combination with KMCP through the acquisition of its subsidiary KMC Holdco AS.

CEO's statement

"We landed a successful deal, yet we are striving for more."

We are pleased to be able to present an interim report for Logistea after the combination with KMCP. The company has a stable financial position with long leases and declining financing costs. Logistea is well equipped for continued growth. Revenue for the period amounted to SEK 465 million (278), net operating income to SEK 385 million (210) and profit from property management, adjusted for transaction costs from the combination, increased by 106 per cent to SEK 169 million (82). Profit from property management per share amounted to SEK 0.5 (0.5) and net asset value per share amounted to SEK 15.0 (13.2).

Stable financial position enables continued growth After the combination with KMCP, we have reached a critical mass with a property portfolio of SEK 13.1 billion and a satisfactory loan-to-value ratio of 48.4 per cent. However, we have strong ambitions will continue to grow within our segment. The focus will continue to be on developing and acquiring properties that are leased to sound and successful tenants who want to expand and develop the premises together with us as property owners.

Growth will take place on several levels. We will continue to acquire single-family properties and portfolios. Our goal is to maintain a high investment rate in our existing portfolio, which generally offers higher returns compared to acquiring existing properties. In addition, in connection with these investments, we can often extend the lease agreement early. Furthermore, we aim to increase the share of new construction. We have a relatively large existing building rights portfolio that we want to develop over time dependant on the prevailing markets and careful investment analysis. Finally, we will continue to evaluate additional mergers. These processes usually take time, but we must be an active player that always takes advantage of good business opportunities.

Improving the financing market

Inflation is falling at a rapid pace in our submarkets, which will result in falling interest rates. The markets where we have the greatest exposure are Sweden and Norway, where short-term

interest rates are expected to fall in both the short and long term. In Sweden, the inflation rate (CPIF) for September was down to 1.1 per cent, which increases the likelihood of a double cut at the Swedish Central Bank's ("Riksbank") next meeting in early November. Long-term interest rates fluctuate quite sharply. The five-year swap rate in Sweden is, at the time when writing this, currently around 2.20 per cent, while at its lowest after the summer, it was down to less than 2.00 per cent. This creates opportunities for those who actively review their financial portfolio to hedge interest rates at attractive levels.

However, the financing market is much more than reference rates. We are working intensively to review our existing finance portfolio to optimize pricing (margin). Part of the work is to investigate the possibility of replacing our covered bond, with a margin of 5 per cent, with more beneficial financing. Already in the third quarter, our average interest rate has fallen to 5.6 per cent, compared with 5.9 per cent in the second quarter (for the merged company). In terms of earnings capacity, this means a reduction in annual financial costs of SEK 32 million.

Renewed financial targets

Following the combination with KMCP, we have communicated new and more ambitious financial targets. Over a five-year period, our goal is to deliver an average annual growth of 15 per cent in both net asset value per share and in profit from property management. We have retained our previous financial targets of a loan-to-value ratio below 60 per cent and an interest coverage ratio above 1.8x.

We have landed a successful deal, yet we are striving for more. As part of the work to further strengthen the company, we have hired Jonas Kennerhed as the new Head of Administration. Jonas comes from a position as Nordic Head of Administration at Logicenters, one of the largest logistics players in the Nordic region and will contribute with deep expertise in management, leasing and development.

Niklas Zuckerman, CEO

Logistea in brief

9.7 y 6.9% 97.4% 48.5%

Weighted Average Unexpired Net initial yield Occupancy rate Loan-to-value Lease Term (WAULT)

Earnings capacity

MSEK	31/03/2023	30/06/2023	30/09/2023	31/12/2023	31/03/2024	30/06/2024	30/09/2024
Investment properties
Rental value	330	329	327	366	404	421	934
Vacancy	-12	-12	-15	-16	-17	-16	-25
Pass-through expenses	60	63	63	65	68	68	68
Property costs	-95	-97	-95	-99	-105	-105	-110
Project properties
Rental value	4	-	16	16	17	17	17
Property costs	0	-	0	0	0	0	-
Net operating income	287	283	296	332	367	385	884
Central administration	-39	-39	-37	-36	-38	-38	-71
Net finance costs*	-134	-131	-135	-117	-148	-146	-370
Profit from property management	114	113	124	179	181	201	443

^* Excludes financing costs for remaining and unutilized credits for project properties. For more information on earnings capacity, see the Other information section.

Financial targets

Profit from property management per ordinary share shall increase by at least 15 per cent per year on average over a five-year period.

Net asset value per ordinary share shall increase by at least 15 per cent per year on average over a five-year period.

Consolidated income statement in summary

	Jan-Sep		Jul-Sep		Oct-Sep	Jan-Dec
MSEK Not	2024	2023	2024	2023	2023/2024	2023
Rental income	459	265	239	87	551	357
Other income	6	13	5	2	7	14
Income	465	278	244	89	558	371
Property expenses	-80	-68	-25	-17	-107	-95
Net operating income 2	385	210	219	72	451	276
Central administration	-56	-26	-26	-8	-66	-36
Net financial income 3	-172	-102	-103	-34	-203	-133
Profit from property management	157	82	90	30	182	107
Changes in value, properties	144	20	23	64	61	-63
Changes in value, derivatives	-92	12	-106	0	-140	-36
Profit before tax	209	114	7	94	103	8
Actual tax	-12	-5	-7	-2	-16	-9
Deferred tax	-19	-22	17	-20	-4	-7
Result for the period for continuing operations	178	87	17	72	83	-8
Profit for the period from distributed operations	-1	-1	-1	-	-1	-1
Net profit for the period	177	86	16	72	82	-9
Net profit for the period attributable to:
Parent Company's shareholders, continuing operations	178	87	17	72	83	-8
Parent Company's shareholders, distributed operations	-1	-1	-1	-	-1	-1
Earnings per share
Earnings per share, calculated on result for the period for continuing operations attributable Parent Company's shareholders, SEK	0.59	0.57	0.04	0.45	0.29	-0.05
Earnings per share, calculated on result for the period attributable to Parent Company's shareholders, SEK	0.59	0.57	0.04	0.45	0.29	-0.05
Earnings per share after dilution, calculated on result for the period attributable to parent company's shareholders, SEK	0.59	0.57	0.04	0.45	0.29	-0.05
Earnings per share after dilution, calculated on result for the period attributable to parent company's shareholders, SEK	0.58	0.57	0.04	0.45	0.29	-0.05

Earnings per share have been adjusted retroactively with the effect of the difference between the resolved subscription price in the rights issue in September 2023 and the share prices as of the date prior to the release of the terms of the rights issue, in accordance with IAS 33.

Consolidated statement of comprehensive income

		Jan-Sep	Jul-Sep		Oct-Sep	Jan-Dec
MSEK	2024	2023	2024	2023	2023/2024	2023
Net profit for the period	177	86	16	72	82	-9
Items which can be recognised as profit for the period
Translation difference	13	-	13	-	13	-
Comprehensive income for the period	190	86	29	72	95	-9
Other comprehensive income for the period attributable to:
Parent Company's shareholders, continuing operations	191	87	30	72	96	-8
Parent Company's shareholders, distributed operations	-1	-1	-1	-	-1	-1

Performance analysis

Income

For the ninth-month period ending September 30, 2024, rental income excluding rental supplements increased by 80.0 per cent to SEK 414 million (230) and total income increased to SEK 465 million (278). The increase in income is mainly due to the acquired properties from KMC Properties ASA.

In the like-for-like portfolio, rental income excluding rental supplements increased by 3.4 per cent as a result of index adjustments offset somewhat by a lower occupancy rate compared with the corresponding period last year. A breakdown of income can be found in Note 2.

Of the period's rental income increase excluding rental supplements of SEK 184 million, SEK 7 million is related to organic growth, and SEK 177 million is attributable to acquired properties.

Property costs

Property costs for the period amounted to SEK -80 million (-68). Costs have increased as a result of an increased property portfolio, sustainability work, maintenance of properties, rental losses and adjusted classification of management fees of SEK 1.2 million between property costs and central administration.

In the like-for-like portfolio, costs have increased by 10.2 per cent, with most of the increase attributable to rental losses. The cost increase excluding rental losses amounts to 5.2 per cent. Most of the operating costs for the period have been reinvoiced to the tenants in accordance with the lease agreements, see Note 2 for more details.

Net operating income

The increase in net operating income of 83.3 per cent to SEK 385 million (210) in the period was mainly driven by the completed combination with KMCP. For the like-for-like portfolio, net operating income increased by 1.0 per cent compared with the same period last year. A breakdown of net operating income can be found in Note 2.

For the past twelve months, the surplus ratio was 81.9 per cent (78.3) and the adjusted surplus ratio was 92.0 per cent (90.6).

Central administration

Costs for central administration amounted to SEK -56 million (-26) for the period. Of these costs, SEK -44 million are attributable to Group-wide functions and SEK -12 million are related to external transaction costs incurred in connection to the combination with KMCP.

Income, SEK million

Comparison of rental income excluding rental supplements, SEK million

Net operating income, SEK million

Net financial income

During the third quarter, Logistea lowered its average interest rate from 5.9 per cent to 5.6 per cent through amortization of more expensive loans, renegotiation of existing bank loans and new interest rate swap agreements. The full effect of these measures will be reported in the coming quarters.

Net financial items increased to SEK -172 million (-102) for the period and to SEK - 103 million (-34) for the quarter as a result of a broadened loan portfolio following the combination with KMCP. Interest-bearing debt at the end of the period amounted to SEK 6,606 million. More information on net financial items can be found in Note 3.

Profit from property management

Profit from property management for the nine-month period amounted to SEK 157 million (82). The increase is mainly related to rental income from newly acquired properties. Profit from property management, excluding transaction costs, amounted to SEK 169 million for the period.

Changes in value

Changes in the value of the property portfolio amounted to SEK 144 million (20) in the period. The unrealised change in value amounted to SEK 144 million (28) and the realized change in value to SEK 0 million (8). Of the unrealised change in value, SEK 122 million is based on increased net operating income, mainly as a result of completed lettings and renegotiations. SEK 10 million is due to changed yield requirement assumptions. The required rate of return has been adjusted upwards by an average of 0.25 percentage points during the period, largely linked to the combination with KMCP. In addition, SEK 12 million of the unrealised change in value is based on deferred tax rebates on acquisitions. More information on changes in the value of properties can be found in the property section and in Note 7.

Logistea's financial derivatives are marketed at the end of each quarter. For the period, changes in value linked to interest rate derivatives amounted to SEK -99 million (12).

Tax

Tax expense for the period amounted to SEK -31 million (-27) and consists of SEK - 12 million (-5) in current tax on profit for the period and SEK -19 million (-22) in deferred tax.

Profit for the period

Profit for the period amounted to SEK 177 million (86), primarily as a result of higher unrealised changes in the value of properties and improved profit from property management. Profit from distributed operations amounted to SEK -1 million (-1).

Profit from property management, SEK million

Profit from property management per share, SEK

Profit from property management per share Growth per quarter, %

Consolidated statement of financial position summary

7 1,080 - - 2 1 1 4 13,101 4,996 5,386 38 10 10 9 4 4 4 1 1 5 37 6 7 66 - 2 14,305 5,049 5,410 129 73 79 211 465 29 340 538 108 14,645 5,587 5,518 EQUITY AND LIABILITIES 6,636 2,608 2,684 6,636 2,608 2,684 5 4,953 1,937 1,453 33 8 8 26 - - 61 - 18 7 1,020 206 194 6,093 2,151 1,673 Current liabilities Interest-bearing debt 5 1,617 660 1,025 Leasing liabilities 5 2 2 Other liabilities 294 166 134 1,916 828 1,161	MSEK	Not	30/09/2024	30/09/2023	31/12/2023
	ASSETS
	Non-current assets
	Goodwill
	Other intangible assets
	Investment properties
	Right-of-use assets
	Other tangible fixed assets
	Other long-term receivables
	Derivatives
	Deferred tax
	Total non-current assets
	Current assets
	Current receivables
	Cash and bank balances
	Total current assets
	TOTAL ASSETS
	Equity attributable to Parent Company's shareholders
	Total equity
	Non-current liabilities
	Interest-bearing debt
	Leasing liabilities
	Other non-current liabilities
	Derivatives
	Deferred tax
	Total non-current liabilities
	Total current liabilities
	TOTAL EQUITY AND LIABILITIES		14,645	5,587	5,518

Consolidated statement of changes in equity in summary

MSEK	30/09/2024	30/09/2023	31/12/2023
Equity at beginning of period	2,684	1,864	1,864
Comprehensive income for the period	190	86	-9
Emissions, net after issuance costs	3,757	653	824
Tax effect issuance costs	4	3	3
Staff option program	1	2	2
Equity at end of period	6,636	2,608	2,684

Consolidated cash flow report in summary

	Jan-Sep		Jul-Sep		Oct-Sep	Jan-Dec
MSEK Not	2024	2023	2024	2023	2023/2024	2023
Cash flow from operations
Net operating income continuing operations	385	210	219	72	451	276
Central administration continuing operations	-56	-26	-26	-8	-66	-36
Operating income from distributed operations	-1	-1	-1	-	-1	-1
Adjustments for non-cash items	1	1	-	0	1	1
Interest received	9	41	8	28	-29	3
Interest paid	-121	-113	-61	-34	-140	-132
Tax paid	-9	-9	-3	-5	-7	-7
Cash flow before changes in working capital	208	103	136	53	209	104
Cash flow from changes in working capital
Increase (-)/decrease (+) of current assets	-18	46	3	34	-23	41
Increase (+)/decrease (-) of current liabilities	-39	-12	-85	-20	-55	-28
Cash flow from operations	151	137	54	67	131	117
Cash flow from investing activities
Investments in current properties	-186	-60	-73	-15	-237	-111
Acquisition of assets via subsidiaries 7	-344	-89	109	-	-584	-329
Other intangible and tangible assets, net	0	0	0	0	0	0
Cash flow from investing activities	-530	-119	36	-15	-821	-410
Cash flow from financing activities
Emissions, net after issuance costs	312	421	-11	422	311	420
Staff option program	1	2	1	0	1	2
New loans	2,124	160	90	-	2,342	378
Repayment of loans	-1,874	-188	-176	-38	-2,216	-530
Cash flow from financing activities	563	395	-96	384	438	270
Increase/decrease of cash and cash equivalents
Cash flow for the period	184	413	-6	436	-252	-23
Cash and cash equivalents at beginning of period	29	52	219	29	465	52
Exchange rate differences in cash and cash equivalents	-2	-	-2	-	-2	-
Cash and cash equivalents at end of period	211	465	211	465	211	29

Comments on the cash flow statement

The cash flow statement has been prepared in accordance with IAS 7, which means that only the net purchase price for the shares in acquired companies, less acquired cash, is recognized under acquisitions of assets via subsidiaries. Amortized loans include the Group's amortization of existing debt and refinancing of acquired debt.

The Group's cash and cash equivalents have increased from SEK 29 million to SEK 211 during the period, mainly due to the completed directed share issue, which raised SEK 250 million before issue costs in the first quarter of 2024.

Property portfolio

Property holdings as of 30 September 2024

Country	Property value, MSEK	Number of properties	Lettable area, t.sq.m.	Building rights, t.sq.m.	Rental value, MSEK	Economic occupancy rate, %	Contracted rental value, MSEK	Net operating income*, MSEK
Sweden	6,698	78	805	139	497	96.6	480	443
Norway	3,355	34	215	-	248	96.9	240	236
Denmark	1,006	12	161	-	74	100.0	74	74
Netherlands	315	4	72	-	35	100.0	35	35
Finland	480	4	31	-	24	100.0	24	24
Germany	325	2	55	-	25	100.0	25	25
Belgium	282	2	42	-	18	100.0	18	18
Poland	129	3	20	-	13	100.0	13	13
Total	12,591	139	1,401	139	934	97.4	910	868
Project properties	510	6	3	204	17		17	17
Total	13,101	145	1,404	343	951		927	884

^*Refers to net operating income from earnings capacity

As of September 30, 2024, Logistea owned 145 properties (69) in 8 countries. The rental value at the end of the period amounted to SEK 934 million (366). The total leasable area amounted to 1,404 thousand square meters (564), excluding ongoing and planned new construction and extensions. The average contracted rental value in the portfolio amounted to SEK 665 per square metre (588). The economic occupancy rate for investment properties at the end of the period was 97.4 per cent (96.3).

The annual rental value of the investment properties amounted to SEK 910 million (350) on the balance sheet date, compared with SEK 327 million at the end of the third quarter of 2023.

The total carrying value of the property portfolio on the balance sheet date amounted to SEK 13,101 million (5,386). As of the balance sheet date, there is an ongoing new construction that is planned to be completed within a 12-month period and relates to a new construction for NKT HV Cables AB at Bulten 1 in Alingsås with an investment volume of SEK 160 million in total. The project is expected to be completed by the end of Q4 2024.

Income and net operating income by country

	Income								Net operati	ng income
	Jan-S	ер	Jul-	Sep	Oct-Sep	Jan-Dec	Jan-	Sep	Jul-	Sep	Oct-Sep	Jan-Dec
MSEK	2024	2023	2024	2023	2023/2024	2023	2024	2023	2024	2023	2023/2024	2023
Sweden	355	278	134	89	448	371	276	210	109	72	342	276
Norway	62	-	62	-	62	-	61	-	61	-	61	-
Denmark	19	-	19	-	19	-	19	-	19	-	19	-
Netherlands	9	-	9	-	9	-	9	-	9	-	9	-
Finland	6	-	6	-	6	-	6	-	6	-	6	-
Germany	6	-	6	-	6	-	6	-	6	-	6	-
Belgium	5	-	5	-	5	-	5	-	5	-	5	-
Poland	3	-	3	-	3	-	3	-	3	-	3	-
Total	466	278	245	89	559	371	385	210	219	72	451	276

Transactions

During the third quarter, 72 properties with a lettable area of 715 thousand square meters were acquired. As of June 30, the properties, which were acquired from KMC Properties ASA, had a weighted average remaining contract length of 11.3 years and a rental value of SEK 524 million. The annual net operating income for the acquired properties is estimated to amount to SEK 499 million.

Property portfolio

The net initial yield or Logistea's cash-generating properties at the end of the period was 6.9 per cent (6.3) and the average valuation yield was 6.9 per cent (6.6).

Valuation

At the end of the third quarter, 54 per cent of the cash-generating properties, corresponding to 61 per cent of the total portfolio in terms of value, were valued by external authorized and independent valuation agencies. Other properties have been valued internally. To assess the market value of the properties, Logistea has used Newsec, Savills, Norion and Cushman & Wakefield as independent valuation firms.

For the third quarter, the unrealized change in value amounted to SEK 23 million (-64). Of the unrealised change in value, SEK 33 million is due to an increase in net operating income, mainly as a result of completed lettings and renegotiations. SEK -10 million is due to changed assumptions regarding the yield requirement, where the required rate of return has been adjusted upwards by an average of 0.02 percentage points during the period.

As a general rule, cash flow calculations are used in the value assessments, in which net operating income, investments and residual value are calculated at present value. The calculation period is adjusted based on the remaining term of each property's existing lease agreement. The valuation technique is unchanged from the previous year and more information about valuations can be found in Note 6 in this report and in Note 10 in Logistea's Annual and Sustainability Report 2023.

Acquisitions, investments and divestments, SEK million

Changes in property value, SEK million

MSEK	2024	2023
Property value 1 January	5,386	4,623
Investments in bef. real estate	186	45
Asset Acquisitions	639	324
Business combinations (KMCP)	6,759	-
Divestment	0	-37
Unrealised change in value	144	937
Exchange rate conversion	-13	-
Property value 30 Sept	13,101	4,918

Occupancy rate, %

Tenants

Customers and rental agreements

Logistea's vision is to be the natural long-term partner to companies that demand sustainable and modern premises for warehousing, logistics and light industry by offering sustainable and efficient premises in good operating locations adapted to the needs of tenants. Together with the tenants, the properties are developed for the benefit of both parties.

Logistea primarily signs triple net lease contracts with full CPI adjustment, where the tenant pays the cost of operation and maintenance in addition to the contracted rent. Examples of these costs are heating, electricity, water, property tax, property maintenance and maintenance of the properties. This means that Logistea has a limited risk of increases in these types of costs.

Logistea's acquisition strategy focuses on and prioritises properties in good locations with financially stable tenants and long-term leases. As of September 30, 2024, the average remaining contract length for Logistea's tenants was 9.7 years (7.9). Logistea prioritises a well-diversified customer base in terms of the tenants' business areas and industries, which is expected to reduce the risk of rental losses and vacancies and stable cash flow over time.

On 8 October, Logistea entered into a five-year lease agreement with Gina Tricot AB for 6,300 square metres within the Viran 8 property in Borås. With the lease, the property is fully leased.

BLL, which leases warehouse space on three properties within Logistea's portfolio with a total annual rent of approximately SEK 13.2 million, has filed for bankruptcy after the balance sheet date. Logistea has a close dialogue with the bankruptcy trustee and there are good hopes of finding a solution soon for the areas leased by BLL.

Net lettings

During the period, net lettings amounted to SEK 3 million (10). In the first quarter of 2024, a bankruptcy of SEK 6 million arose, where half of the affected areas are leased to a new tenant. During the third quarter of the year, new agreements totalling SEK 7 million were signed and net lettings for the quarter amounted to SEK 3 million (-15).

		Jan-Sep	Oct-Sep	Jan-Dec
MSEK	2024	2023	2023/2024	2023
New leases	15	20	25	30
Renegotiations	0	0	0	1
Terminations	-5	-6	-12	-13
Bankruptcies	-6	-4	-10	-8
Net lease	4	10	3	10

Average lease duration, years

Maturity structure contracted rental value, %

Net lettings per quarter, SEK million

Projects

To maintain satisfied and long-term tenants, Logistea works continuously to develop, refine, modernize and adapt its properties based on the tenant's needs. Together with its tenants, Logistea develops new properties, modernises and expands existing properties, and drives further development of the surrounding environment adjacent to the properties. Through good and close cooperation, Logistea can grow together with the tenants.

Ongoing projects

Alingsås (Bulten 1)

In August 2023, Logistea signed a 20-year lease agreement with NKT HV Cables AB regarding the construction of a production and test facility on the Bulten 1 property in Alingsås. The investment amounts to a maximum of SEK 160 million and the building is expected to be completed in December 2024. The lease is a green triple-net lease. The project is financed through Sparbanken Alingsås. Logistea has also extended the lease agreement with NKT for approximately 10,700 square meters in the existing building on the same property until 2045-04-30. The annual rent, excluding supplements, for the two leases amounts to a total of approximately SEK 29.6 million.

Future projects

Vaggeryd Logistics Park

Vaggeryd Logistics Park is an extensive development area located south of Jönköping. In addition to an excellent logistics location, there is also a railway connection in the area. The logistics park comprises a total land area of 380,000 square meters and approximately 150,000 square meters of developable building rights, excluding the first completed construction phase.

In the logistics park, battery storage with an output of 9 MW has been installed and commissioned in stages during the second and third quarter of 2024. No investments are related to this project.

Fåglabäck in Vaggeryd

With proximity to the Båramo Terminal, a combined terminal connected by rail from the Port of Gothenburg, the area is one of the largest inland nodes in the railway network. Here, Logistea plans to build modern warehouse and logistics buildings of approximately 55,000 - 60,000 square meters on a land area of approximately 100,000 square meters of land. The Båramo intermodal terminal is part of the European rail corridor ScandMed, established by the EU.

Lockryd Industrial Park in Svenljunga

The detailed plan for the area is expected to gain legal force during the first quarter of 2025. Logistea still has an option to acquire the land from the municipality. Logistea is also evaluating potential establishments within the industrial park and is in dialogue with stakeholders.

Ongoing projects

Property	Lettable area, sq.m.	Estimated rental value, MSEK	Estimated NOI, MSEK	Total investment, MSEK	Remaining investment, MSEK	Estimated completion, year
Alingsås Bulten 1	3,500	17	17	160	16	2024
Total	3,500	17	17	160	16

Vision of Vaggeryd Logistics Park Sketch of the test and production hall in Alingsås

Market – Warehousing, logistics and light industry

Transaction market

Transaction volumes for warehousing, logistics and light industry in the Nordics fell back in the third quarter after the seasonally strong second quarter, but compared to the same period last year, there was an increase of close to 50%. It should be noted that the increase is from historically low levels and driven almost entirely by Catena's acquisition from DSV in Denmark of approximately SEK 5 billion.

Investor interest in the segment remains strong with high activity from both Nordic and international investors, driven by fundamental trends that benefit the segment (e-commerce, onshoring, etc.). Volumes in the transaction market appear to have bottomed out and our assessment is that the high level of activity we are seeing in the market will soon be reflected in higher transaction volumes.

Rental market

The rental market in all Nordic countries, and more specifically capital cities, continues to show strength. In local currencies, rents are up between 1-6% year-on-year, with Oslo leading the way and Copenhagen with the lowest growth rate. The challenging economic situation has not had an impact on rent levels in Logistea's markets, and this underlines the fundamentally strong demand for warehouses and industrial premises in the Nordic region.

Vacancy rates have continued to climb during the third quarter in all Nordic capitals, with Stockholm showing the highest vacancy rate at just under 8%. This is largely a result of speculative new production in northern Stockholm and thus a relatively local phenomenon. As the completion of new premises decreases, it is reasonable to assume that the vacancy rate will fall back.

Average rents prime logistics

Vacancies

Logistics/industrial transaction volume on a quarterly basis, SEK million

Sustainability

New property portfolio with new opportunities

Following the combination with KMCP, Logistea has analysed the new property portfolio from a sustainability perspective. The initial work has consisted of mapping, analysis and comparisons of working methods, target images, property data as well as risks and opportunities.

The company continues its journey towards reporting according to the CSRD and the EU taxonomy. During the autumn, the double materiality analysis will be updated and validated with the company's new stakeholders. The materiality analysis will highlight the sustainability issues that Logistea will prioritize in order to minimize risks and take advantage of opportunities, both financially and in terms of Logistea's impact on the world around us. Furthermore, the intention is to adopt new goals and internal guidelines for sustainability work during the autumn based on how the new merged company's conditions, risks and opportunities are.

The work of collecting consumption data is continuing and has intensified with the new property portfolio. Previous targets to report data in the second half of 2024 have been postponed due to the combination with KMCP. Instead, the goal is to report consumption figures for the 2024 financial year.

Energy saving measures

Up to the closing date, Logistea has received energy declarations for 84 per cent of the property portfolio. Of the buildings that have received an energy performance certificate, about 50 per cent of the properties belong to classes A, B and C.

Based on the properties' energy declarations, various energy efficiency measures have been initiated and implemented during the period. For those properties where the tenant is responsible for energy and heating costs, there is an ongoing dialogue about action plans.

Batteries

Target - Installed capacity from battery storage shall amount to at least 30 MW by the end of 2025.

Update – At the beginning of April 2024, the first batteries arrived and were installed in Vaggeryd's Logistics Park. The batteries have an output of 9 MW and were commissioned by Svenska Kraftnät in the second quarter of 2024. After a test and control period of 2 to 3 months, the batteries will start to generate returns, which is expected to happen at the end of the fourth quarter. In addition, 1 MW has been installed at Logistea's property on Klädesholmen, which is expected to be commissioned at the end of the fourth quarter of 2024.

Solar energy

Target - Annually increase the installed capacity from solar energy by 1 MWp.

Update – Inventory of which properties are relevant for solar cell installations and discussions with tenants are ongoing. However, we have noted a marked decrease in interest in solar cells among our tenants as a result of low energy prices, which makes it difficult to achieve the goal of 1 MWp per year.

Behavior

Target - All Logistea employees shall be trained in and essential suppliers shall undertake to comply with Logistea's Code of Conduct.

Update – During the fourth quarter of 2024, Logistea will update the current Code of Conduct to adapt to the conditions following the combination with KMCP. After that, the company will hold training for all employees in Logistea's Code of Conduct.

Financing

Interest-bearing liabilities

During the quarter, a major focus has been on analysing, mapping and drawing up a plan for how the debt portfolio can be optimized after the acquisition of properties from KMC Properties ASA. Most bank loans were renegotiated during the quarter with good results in the form of lower margins. The derivatives portfolio has been restructured as long-term interest rates in particular have been deemed relatively attractive in the latter part of the third quarter, both in the short and long term, which has led to both extensions and further interest rate hedging. In addition, a revolving credit facility of NOK 120 million has been repaid.

Logistea mainly uses bank financing but also the capital market to finance investments such as acquisitions, new construction and refinement of the existing portfolio, such as tenant adaptations and energy efficiency measures. Of the total interest-bearing debt, bank financing accounts for 85 per cent (96), bond loans 14 per cent (3) and promissory notes 1 per cent (1). At the end of the period, Logistea has outstanding bonds, which the company does not own, corresponding to SEK 939 million. The interest rate on the bond loan of SEK 75 million is variable and has a margin of 5.15 per cent, a maturity of 3 years and was repaid to the bondholders on October 7, 2024. The interest rate on the NOK 900 million bond loan, which in turn is swapped to Euro, has a margin of 5.00 per cent, a maturity of 1.8 years and matures in July 2026.

Logistea's interest-bearing net debt, interest-bearing liabilities less cash and cash equivalents, amounted to SEK 6,360 million (2,449) on the balance sheet date, which corresponds to a loan-to-value ratio of 48.5 per cent (45.5) of the properties' market value. See Note 5 for a breakdown of interest-bearing liabilities.

The interest coverage ratio was 2.0 times (1.9). The secured loan-to-value ratio at the end of the period was 47.8 per cent (42.8). Of the interest-bearing liabilities, SEK 4,953 million (1,453) consisted of long-term liabilities and SEK 1,617 million (1,025) consisted of shortterm liabilities.

The average fixed income and capital tied up amounted to 3.5 years (2.8) and 2.2 years (1.9) respectively at the end of the period. The average interest rate on the balance sheet date was 5.6 per cent (4.7), including the effect of interest rate derivatives, compared with 5.9 per cent at the beginning of the quarter.

Net borrowing during the period amounted to a total of SEK 250 million (-28). During the period, the Group raised SEK 2,124 million (160) in new loans and amortized or repurchased interest-bearing debt of SEK 1,874 million (188). At the end of the period, Logistea had cash and cash equivalents amounting to SEK 211 million (29).

Breakdown of interest-bearing liabilities, %

Breakdown of long- and short-term liabilities, %

Loan-to-value (LTV) ratio, %

Interest rate risk management

During the quarter, the Company continued to work actively with the derivatives portfolio. During the period, existing derivatives amounting to SEK 562 million were extended and new derivatives worth SEK 894 million were subscribed (SEK 500 million in derivatives in SEK, SEK 192 million in derivatives in EUR and SEK 202 million in derivatives in NOK). On the balance sheet date, the nominal amount of the company's interest rate derivatives amounted to SEK 4,402 million with an average interest rate of 2.6 per cent. 73.9 per cent of Logistea's loan portfolio is interest-rate hedged, including fixed interest rate loans of SEK 483 million. The company owned interest rate swaps with a nominal amount of SEK 3,502 million with an average interest rate of 2.6 per cent, performance swaps with a nominal amount of SEK 900 million in total, where the barrier in performance swaps with a nominal amount of SEK 800 million amounts to 4.50 per cent and a nominal amount of SEK 100 million has a barrier of 4.25 per cent. The average interest rate, the fixed rate, for the performance swaps was 2.4 per cent, which is paid as long as the variable interest rate (Stibor 3-months) is below the respective barrier level. Furthermore, Logistea held an interest rate cap with a nominal amount of SEK 20 million with an interest rate cap of 1.5 per cent.

At the end of the quarter, the nominal value of Logistea's interest rate derivatives portfolio amounted to SEK 4,402 million (2,081) and consisted of derivatives maturing during the period 2024–2031. The net market value of the derivatives at the end of the period amounted to SEK -58 million (-12). The change in market value for the period amounted to SEK -92 million (12) and is partly explained by falling long-term market interest rates.

Derivative instruments

On the balance sheet date, Logistea has derivatives in a nominal amount of SEK 5,279 million, including currency derivatives of SEK 877 million. The average interest rate on derivatives is 2.1 per cent and has an average maturity of 3.6 years.

More information on the different derivatives can be found under the section Definitions.

Fixed capital and interest maturities

			Interest rate maturity
Maturity date	Bank loans, MSEK	Bond loans, MSEK	Other interest bearing debt, MSEK	Total debt, MSEK	Share, %	Volume, MSEK	Share, %	Average fixed interest rate term, years
0-1 years	1,356	75	25	1,456	22.0	1,165	18	0.2
1-2 years	1,822	864	17	2,704	40.9	17	0	0.0
2-3 years	1,215	-	-	1,215	18.4	489	7	0.2
3-4 years	612	-	-	612	9.3	2,325	35	1.2
>4 years	600	-	19	620	9.4	2,625	40	1.9
Total	5,605	939	62	6,606	100.0	6,621	100	3.5

Debt portfolio

Full debt portfolio	Loan amount, MSEK	Weighted average margin, %	Weighted average current terms, %	Weighted average annual amortisation, %	Weighted average maturity, years
Bank loans	5,605	2.17%	6.02%	3.3%	2.3
Bond loans	939	5.01%	9.66%	0.0%	1.6
Other loans	62	1.73%	5.45%	0.0%	2.9
Total	6,606	2.57%	6.53%		2.2
Swap agreements			-0.94%
Total including swap			5.60%

agreements

Logistea's share

Logistea's shares are listed on Nasdaq Stockholm Mid Cap and at the end of the period had just over 12,799 shareholders (11,692). The ten largest owners as of September 30, 2024 are shown in the table below.

Shareholders as of 30 September 2024

Each Class A share corresponds to one vote and one Class B share corresponds to one-tenth of a vote.

Shareholder	LOGI A		LOGI B Capital, %	Votes, %
Rutger Arnhult with related parties	10,713,210	97,640,326	22.9	26.5
KMC Properties ASA	5,271,803	69,536,077	15.8	15.8
BEWI Invest AS	3,983,600	52,552,298	11.9	11.9
Nordika	4,098,721	51,556,955	11.8	12.0
Fourth Swedish National Pension Fund		20,698,700	4.4	2.7
Länsförsäkringar Fonder		19,638,516	4.1	2.5
Stefan Hansson with related parties	935,261	8,746,741	2.0	2.3
Dragfast AB	5,045,000	3,050,000	1.7	6.9
Patrik Tillman with related parties	76,834	6,028,191	1.3	0.9
Handelsbanken Fonder		5,782,237	1.2	0.7
Subtotal 10 largest shareholders	30,124,429	335,230,041	77.2	82.3
Company management	5,209	2,502,940	0.5	0.3
Other	3,221,800	102,244,505	22.3	17.4
Total all shareholders	33,351,438	439,977,486	100.0	100.0

Source: Euroclear and shareholders.

Share issues during the period

In the first quarter, Logistea carried out a directed share issue of SEK 250 million before issue costs, through an accelerated bookbuilding procedure where 18,940,000 ordinary shares of series B were issued at a subscription price of SEK 13.20 per share.

On 4 June 2024, Logistea carried out a directed share issue of 5,657,666 ordinary shares of class B at a value of SEK 79 million. The issue was carried out in a set-off procedure as part of the purchase price in the possession of the property Åmål 6:78.

In connection with the acquisition of KMC HoldCo AS from KMC Properties ASA, 16,263,577 shares of ordinary A and 214,551,706 shares of ordinary B were issued as consideration shares upon payment of the purchase price to KMC Properties ASA. KMC Properties ASA will distribute the shares to its shareholders in two tranches in dividends in kind, one of which was carried out in July 2024.

Option programs

Logistea has three active option programs for employees and key employees. The first warrant program comprises 4,125,000 warrants entitling to subscribe for 4,695,450 Class B shares during the subscription period in December 2025 at a subscription price of SEK 26.1. The second warrant program comprises 1,640,000 warrants entitling to subscribe for 1,816,306 Class B shares during the subscription period during June 2026 at a subscription price of SEK 14.0. The third warrant program comprises 630,000 warrants entitling to subscribe for 630,000 Class B shares during the subscription period during Q2 2027 at a subscription price of SEK 16.4.

Warrants whose subscription price is below the average market price for the period have given rise to a dilution effect for the key figure earnings per share.

Share information, 30 September, 2024

Market capitalization	SEK 8.7 billion
Marketplace	Nasdaq Stockholm Mid Cap
LEI No	549300ZSB0ZCKM1SL747
Number of shareholders	12,799

Class A ordinary share
Number of shares	33,351,438
Closing rate	17.85 kr
ISIN	SE0017131329
Class B ordinary share
Number of shares	439,977,486
Closing rate	18.50 kr
ISIN	SE0017131337

The total outstanding shares as of the balance sheet date amount to 473,328,924 shares.

Net asset value (EPRA NRV) per ordinary share of Class A and B, SEK

EPRA key figures

	MSEK	SEK/share
Equity according to IFRS	6,636	14.0
Net asset value EPRA NAV	6,636	14.0
Deferred tax on real estate
and derivatives	418	0.9
Fair value net derivatives	56	0.1
Net asset value EPRA NRV	7,110	15.0
Assessed actual deferred
Tax, 5.15%	-343	-0.7
Goodwill (excl. deferred tax)	-503	-1.1
Intangible assets	-2	-0.0
Net asset value EPRA NTA	6,262	13.2
Derivatives as described above	-56	-0.1
Deferred tax in its entirety	-75	-0.1
Intangible assets	2	0.0
Net asset value EPRA NDV	6,134	13.0

Key ratios

		Jan-Sep		Jan-Dec
	2024	2023	2023/2024	2023
Property related
Fair value investment properties, MSEK	13,101	4,996	13,101	5,386
Income, MSEK	465	278	558	371
Rental value, MSEK	934	327	934	366
Net operating income, MSEK	385	210	451	276
Economic occupancy rate, %	97.4	96.3	97.4	95.7
Wault, years	9.7	7.8	9.7	7.9
Yield, %	6.9	6.0	6.9	6.3
Operating margin, 12 months average, %	81.9	78.3	81.9	77.3
Adjusted operating margin, 12 months average, %	92.0	90.6	92.0	90.2
Number of investment properties	145	68	145	69
Financial
Return on equity, %	5.1	5.2	1.8	-0.4
Equity ratio, %	45.3	46.7	45.3	48.6
Interest-bearing net debt, MSEK	6,360	2,131	6,360	2,449
Loan to value, %	48.5	42.7	48.5	45.5
Secured loan to value, %	47.8	34.5	47.8	42.8
Net debt to EBITDA ratio, times	7.8	8.2	7.8	8.3
Interest cover ratio, 12 month average, times	2.0	1.9	2.0	1.9
Average interest, %	5.6	5.2	5.6	4.7
Average fixed-interest period, years	3.5	2.1	3.5	2.8
Average tied-up capital, years	2.2	2.0	2.2	1.9
Share-related
Profit from property mgmt per ordinary share A and B, SEK	0.5	0.5	0.7	0.6
Earnings per ordinary share A and B, SEK	0.6	0.6	0.3	0.0
Earnings per ordinary share A and B after dilution, SEK	0.6	0.6	0.3	0.0
NRV per ordinary share A and B, SEK	15.0	13.3	15.0	13.3
Equity per ordinary share A and B, SEK	14.0	12.5	14.0	12.3
Share price per ordinary share A, SEK	17.9	11.0	17.9	12.5
Share price per ordinary share B, SEK	18.5	11.1	18.5	12.5
Dividend per ordinary share A and B, SEK	-	-	-	-
EPRA
EPRA NRV, SEK/share	15.0	13.3	15.0	13.3
EPRA NTA, SEK/share	13.2	12.4	13.2	12.4
EPRA NDV, SEK/share	13.0	12.5	13.0	12.3
EPRA EPS	0.5	0.3	0.6	0.6
Number of outstanding ordinary shares class A and B, thousands	473,329	209,205	473,329	217,916
Average number of outstanding ordinary shares, thousands	301,609	152,600	278,926	167,413

For definitions of key figures, see pages 27-28. Reconciliation tables for calculating key figures are available on Logistea's website.

Notes

Note 1. Accounting principles

This interim report has been prepared in accordance with IAS 34 Interim Financial Reporting and the Annual Accounts Act. Accounting principles and calculation methods have remained unchanged compared with the annual report for the previous year, except for the following adjustments regarding business combinations and hedge accounting. Disclosures in accordance with IAS 34 Interim Financial Reporting are provided both in the notes and elsewhere in the report. Comparative figures for profit and loss items in text are for the corresponding period of the previous year. Comparative figures for balance sheet items in text are from the balance sheet date 2023-12-31.

Valuation of receivables and liabilities

The Group's and the parent company's financial receivables and liabilities are recognised at amortised cost less loss reserves or fair value through profit or loss. For financial assets and liabilities measured at amortised cost, the carrying amount is considered to be a good approximation of the fair value as the receivables and liabilities either run over a shorter period of time or, in the case of a longer period, run with a short fixed interest rate.

Business combinations

The acquisition of KMC HoldCo AS in July 2024 is classified as a business combination according to IFRS 3.

Hedge accounting

Currency effects for foreign operations and currency hedging are reported in comprehensive income for the period. Other currency effects are recognised in the income statement.

Segment reporting

As the internal reporting is not divided into different segments, the company does not report segment reporting in accordance with IFRS 8.

Risks and risk management

Through its operations, the Group is exposed to risks and uncertainties. In September 2024, Logistea updated its financial targets and risk limits. More information on these can be found on page 3 of this report. A description of the Group's other risks can be found on pages 59–63 and in Notes 10 and 18 in the Annual Report for 2023. The Annual Report 2023 can be found on Logistea's website.

Note 2. Net operating income

	Jul-Sep		Oct-Sep	Jan-Dec
MSEK	2024		2023 2023/2024	2023
Rental income	459	265	551	357
Whereof supplements	45	35	61	51
Other income	6	13	7	14
Property costs	-80	-68	-107	-95
Net operating income	385	210	451	276
Operating margin	84%	79%	82%	77%
Adj. operating margin	93%	91%	92%	90%

The table above shows how much of the total rental income constitutes rent supplements. The adjusted surplus ratio is the net operating income through rental income excluding rent supplements and shows the surplus ratio adjusted for property costs that are re-invoiced to tenants.

Note 3. Net financial items

	Jan-Sep		Okt-Sep	Jan-Dec
MSEK	2024		2023 2023/2024	2023
Interest income	18.6	2.0	19.5	2.9
Interest costs	-183.9	-103.3	-213.1	-132.5
Capitalised interest	1.7	4.1	3.7	6.1
Interest costs IFRS 16	-0.7	-0.2	-1.0	-0.5
Bond tender fees	-	-	-3.1	-3.1
Arrangement fees	-9.8	-4.6	-11.3	-6.1
Net financial income	-172.1	-102.0	-203.3	-133.2

Note 4. Investment properties

Valuation of the property portfolio

The property valuation is based on observable inputs such as current leases, market rents, actual outcomes for operating and maintenance costs, planned investments and current vacancy rates, as well as unobservable inputs such as yield requirements and future vacancy levels. The calculation period has been adjusted according to the remaining term of existing leases and varies between 10 and 20 years. The calculation period is usually 10 years. The cash flow calculations are based on inflation assumptions made by the rating agencies. The level of annual future inflation is estimated at 2.0 per cent.

The basis for assessing future operating net is an analysis of current lease agreements and of the current rental market. The lease agreements have been taken into account individually in the calculation. Normally, the existing leases have been assumed to be valid until the end of the leases. In cases where the lease terms have been assessed as market-based, they have then been assumed to be possible to extend on unchanged terms or alternatively be possible to rent out on similar terms. In cases where the outgoing rent has been deemed to deviate from the current market rent, this has been adjusted to the market level. The maximum and best use of the properties has been assumed in the property valuations. The cash flow statement takes into account the market situation, rent level, the tenant's assessed ability to pay, other use and the long-term vacancy rate for each property. The long-term vacancy rate for each property is assessed based on location, micro-location, area of use and assessed alternative use, among other things.

Investment properties are reported at fair value according to level three of the fair value hierarchy with changes in value in the income statement. The Group's properties consist mainly of warehouse and logistics properties, which have a similar risk profile and valuation methodology. The average lease period on all contracts on the balance sheet date was 9.7 years (7.9).

The discount rate, the estimated required rate of return for each property plus inflation, constitutes a nominal required rate of return on total capital. The starting point for the discount rate is the nominal interest rate on government bonds with a five-year maturity with a general risk premium for real estate and an object-specific supplement. The chosen yield requirement for the residual value assessment has been taken from market information from the relevant submarket and has been adjusted with regard to the property's phase in the economic life cycle at the end of the calculation period. The discount rate for the calculation of present value of cash flows and residual value is in the range of 5.5 - 10.9 per cent and is based on analyses of completed transactions and on individual assessments regarding the risk level and market position of each property. On 30 September 2024, the weighted discount rate for discounting cash flows and residual values was 8.0 per cent (8.4). The weighted yield requirement was 7.1 per cent (6.6), of which all yield requirements were in the range of 5.4 - 12.4 per cent. This means that if Logistea's property portfolio were theoretically to be regarded as a single property, the market value of SEK 13,101 million corresponds to a property yield requirement of 7.1 per cent and a discount rate of 8.0 per cent for cash flow and present value discounting of the residual value. The table below presents the sensitivity of property values to changed assumptions.

The fair value of the Group's building rights is based on local price analyses from transactions in the area with similar building rights. Costs incurred for earthworks, for example, are included in the fair value.

More information about Logistea's values can be found in Note 10 in the Annual Report 2023.

Sensitivity analysis property value

Ch	an	ae	in	va	III6

MSEK	Change	2024	2023
Yield	+/- 0.25%-units	-441 / 474	-188 / 205
Vacancy	+/- 1.00%	-132 / 132	-52 / 52
Rental income	+/- 5.00%	660 / -660	261 / -261
Property costs	+/- 5.00%	-30 / 30	-27 / 27

All acquisitions made during the period are classified as asset acquisitions, except for the acquisition of KMC HoldCo AS, which is classified as a business combination. More information about the Group's investment properties can be found in the Property portfolio section.

Note 5. Interest-bearing liabilities

In connection with the transaction of KMC HoldCo AS, the interestbearing liabilities of Logistea increased by SEK 3,718 million on the closing date, 11 July 2024. More information about maturities of interest and capital can be found on page 16.

Below is a breakdown of interest-bearing liabilities on the balance sheet date

MSEK	30/09/2024	30/09/2023
Bank loans	5,605	2,189
Bond loans	939	384
Other interest bearing debt	62	30
Interest bearing debt at end of period	6,606	2,603
Capitalised financial costs	-36	-6
Interest bearing debt in balance sheet	6,570	2,597

Note 6. Related party transactions

In December 2023, Logistea entered into an agreement regarding the acquisition of two properties in Nybro and Karlstad from Ilija Batljan Invest AB. ABL due to the fact that Sanja Batljan at the time was a member of both Logistea's and Ilija Batljan Invest AB's boards. The transaction was approved by the Extraordinary General Meeting on January 25, 2024.

In May 2024, Logistea entered into an agreement with a fund managed by Slättö Förvaltning regarding the acquisition of a property in Åmål, as well as an agreement with Holdingaktiebolaget Knut Hansson regarding the acquisition of a property in Borås. The transactions were regarded as related party transactions pursuant to Chapter 16 a. ABL due to the fact that Logistea's board member Erik Dansbo is the ClO at Slättö and that Logistea's then board member Stefan Hansson is the owner of Holdingaktiebolaget Knut Hansson. The two transactions were approved by the Extraordinary General Meeting on 29 May 2024.

The tenant BEWI is classified as a related party according to IAS 24, as they own significant shares in Logistea through their company BEWI Invest AS. During the period, BEWI through subsidiaries brought rental income of SEK 68.0 million to Logistea. No other investments have been made in the premises that these tenants rent.

Note 7. Business combinations

On 11 July 2024, the Group acquired all shares in KMC Properties ASA's wholly-owned subsidiary KMC Properties HoldCo AS ("KMC HoldCo"). Logistea will acquire the controlling interest in KMC HoldCo through the acquisition. KMC Properties ASA is a real estate company listed on the Oslo Stock Exchange with a property portfolio in warehousing, logistics and light industry. The acquisition has increased and diversified Logistea's business, improved its growth prospects and access to capital, and improved internal capacity.

Logistea paid the purchase price through newly issued shares in Logistea. To reflect Logistea's share structure with two classes of shares, KMC Properties received both ordinary Class A and Class B shares in Logistea, distributed pro rata in relation to the split of Class A and Class B shares in Logistea at the time of acquisition. Following the completion of the acquisition and KMC Properties' receipt of the newly issued Logista shares, a certain part of the consideration shares have been distributed as an initial dividend and the remaining shares will be distributed in future dividends, to shareholders in KMC Properties. The purchase price was paid through the issue of 16,263,577 ordinary A shares and 214,551,706 ordinary B shares in Logistea, which means that shareholders in KMC Properties, provided that they retain their shares between the dividend dates, will receive approximately 0.04 ordinary A shares and approximately 0.51 ordinary B shares in Logistea for each (1) share they hold in KMC Properties. The total purchase price amounted to SEK 3,449 million based on the fair value of Logistea's shares at the time of control on the closing date. Information provided about the acquisition is preliminary.

Preliminary acquisition analysis KMC HoldCo AS

Acquired net assets at time of acquisition, MSEK

Investment properties 6,759 Right-of-use assets 22 Other non-current assets 11 Current assets 29 Derivatives 50 Cash and bank balances 109 Interest-bearing debt -3,718 Leasing liabilities -22 Deferred tax liabilities -754 Other liabilities -136 Identified net assets 2,350 Goodwill 1,099 Total purchase price 3,449 Purchase price consists of: Equity instruments 3,449 Total purchase price 3,449 The business acquisition's impact on the group's cash flow: Cash and cash balances in acquired group 109 Sum 109 Transaction related costs -12
	Net cash flow	97

The acquisition is classified as a business combination under IFRS 3. This means that acquired assets, liabilities and contingent liabilities are measured at fair value on the acquisition date.

In connection with the acquisition of KMC HoldCo, goodwill of SEK 1,099 million arose in the form of a difference between the transferred remuneration and the fair value of the acquired net assets. Goodwill consists of two parts. The largest part consists of the full deferred tax on the temporary differences between the fair value and the tax residual value of the investment properties, which must be reported in the case of business combinations. For this accounting goodwill of SEK 587 million, there is a corresponding amount under deferred tax. In addition, goodwill consists of synergy effects in the form of streamlining of operating costs in property management and central administration, as well as financing synergies. This part consists of SEK 512 million. Goodwill is not expected to be tax deductible.

Since the goodwill is attributable to foreign assets, the value of the balance sheet item fluctuates with exchange rates.

Transaction costs related to the acquisition of KMC HoldCo amounted to SEK 12 million, which have been expensed in the income statement under central administration and are recognized in cash flow from operating activities in the cash flow statement.

Income statement KMC HoldCo AS

	2024
MSEK	11 jul–30 sep
Income	130
Property expenses	-1
Net operating income	129
Central administration	-13
Net financial income	-67
Profit from property management	49
Changes in value, properties	12
Changes in value, derivatives	-61
Profit before tax	0
Actual tax	-5
Deferred tax	10
Net profit for the period	5

During the almost three months that KMC HoldCo was part of the Group, they contributed SEK 130 million to the Group's revenues and SEK 5 million to the Group's profit after tax. If the acquisition had taken place at the beginning of the 2024 financial year, Logistea estimates that the Group's report on earnings would have included revenues of SEK 364 million and profit after tax of SEK 139 million.

Parent company

Summary income statement for the parent company

	Jan-Sep		Jul-Sep		Oct-Sep	Jan-Dec
MSEK	2024	2023	2024	2023	2023/2024	2023
Intra-group revenue	59	53	25	13	82	76
Administration costs	-56	-45	-25	-11	-72	-61
Operating profit (loss)	3	8	0	2	10	15
Profit from financial items	51	-16	11	-9	47	-20
Year-end appropriations	-	-	-	-	18	18
Profit before tax	54	-8	11	-6	75	13
Tax	-3	0	0	0	0	3
Net profit for the period	51	-8	11	-6	75	16

In the parent company, there are no transactions attributable to other comprehensive income, which is why no comprehensive income report has been prepared.

Condensed balance sheet for the parent company

MSEK	30/09/2024	30/09/2023	31/12/2023
ASSETS
Non-current assets
Intangible assets	0	1	0
Tangible assets	1	1	1
Shares in group companies	4,607	950	1,141
Receivables from group companies	1,800	2,233	2,466
Deferred tax assets	-	-	3
Total non-current assets	6,408	3,185	3,611
Current assets
Receivables from group companies	367	235	302
Other receivables	14	12	8
Cash and cash equivalents	97	438	4
Total current assets	478	685	314
TOTAL ASSETS	6,886	3,870	3,925
EQUITY AND LIABILITIES
Restricted equity	237	106	111
Unrestricted equity	5,574	1,698	1,887
Total equity	5,811	1,804	1,998
Untaxed reserves	1	1	1
Long-term liabilities
Interest-bearing liabilities	17	1,117	626
Liabilities to group companies	524	21	21
Derivatives	-	-	16
Total long-term liabilities	541	1,138	663
Short-term liabilities
Interest-bearing liabilities	100	636	1,004
Liabilities to group companies	412	236	243
Other liabilities	21	55	16
Total short-term liabilities	533	927	1,263
TOTAL EQUITY AND LIABILITIES	6,886	3,870	3,925

Signature of the report

The Board of Directors and the CEO assure that the interim report provides a fair overview of the Parent Company's and the Group's operations, position and results and describes significant risks and uncertainties faced by the Parent Company and the companies that are part of the Group. The interim report has been reviewed by the company's auditor.

Stockholm, 25 October 2024

Logistea AB (publ)

Corporate identity number 556627-6241

Patrik Tillman	Bjørnar André Ulstein	Anneli Lindblom
Chairperson	Vice Chairman of the Board	Board member

Erik Dansbo Jonas Grandér Karl-Erik Bekken Mia Arnhult Board member Board member Board member Board member

Niklas Zuckerman Chief executive officer

Review report

Logistea AB, corporate identity number 556627-6241

THIS IS A TRANSLATION FROM THE SWEDISH ORIGINAL

Introduction

We have reviewed the condensed interim report for Logistea AB as of September 30, 2024 and for the nine months period then ended. The Board of Directors and the Managing Director are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.

Scope of review

We conducted our review in accordance with the International Standard on Review Engagements, ISRE 2410 Review of Interim Financial Statements Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and other generally accepted auditing standards in Sweden. The procedures performed in a review do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

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

Stockholm, 25 October 2024

Ernst & Young AB

Gabriel Novella

Authorized Public Accountant

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Other information

Earnings capacity

The table on page 3 presents the Group's earnings capacity on a 12 month basis. Earnings are calculated on the basis of the property portfolio that has been taken possession of on each balance sheet date. Net financial items are calculated on the basis of outstanding interest-bearing liabilities and the current interest rate level on each balance sheet date.

Since the statement is not to be equated with a forecast, but is intended to reflect a normal year, the actual outcome may differ due to decisions that affect the outcome positively or negatively in relation to normal years as well as unforeseen events. The presented earnings capacity does not include an assessment of changes in rent, vacancy or interest rates and only aims to highlight the actual conditions as of each balance sheet date for income and expenses given, for example, capital structure and organisation at each balance sheet date.

Logistea's income statement is also affected by changes in value and changes in the property portfolio. None of this has been taken into account in the current earnings capacity. Net operating income is based on leases contracted as of the balance sheet date and normalised, non-recoverable, property costs for the current portfolio. In addition, the rental value, property costs and estimated financing costs on an annual basis for the ongoing projects that are planned to be completed in 2024 and 2025, where lease agreements have been signed, are included.

Seasonality

The leases in the company's property portfolio are approximately 91 per cent so-called triple net agreements, which means that the tenant is responsible for the absolute majority of operating and maintenance costs. In cases where the property owner is responsible for media costs, seasonal variations in property costs may occur, where, for example, costs for electricity and heating are higher during the colder months of the year.

Employees

At the end of the period, the Group had a total of 24 (15) permanent employees. The average number of employees during the third quarter was 24 (16).

Dividend

The Board's objective is to propose to the Annual General Meeting annually to resolve on a dividend corresponding to at least 30 per cent of the company's profit. The Board of Directors intends to prioritise growth over dividends in the coming years, which may result in low or no dividends to ordinary shares.

Auditor's review

The interim report has been subject to review by the company's auditor.

Alternative performance measures and definitions

Alternative performance measures

Logistea applies the European Securities and Markets Authority's (ESMA) guidelines on Alternative Performance Measures. The guidelines aim to make alternative performance measures in financial statements more comprehensible, reliable and comparable, thereby promoting their usefulness. For the purposes of these guidelines, an alternative performance indicator means a financial measure of historical or future performance performance, financial position, results of financial results or cash flows that are not defined or disclosed in the applicable financial reporting rules; IFRS and the Annual Accounts Act. Derivation of alternative performance measures can be found on Logistea's website.

Adjusted surplus ratio

Net operating income as a percentage of rental income excluding rent supplements.

Average number of ordinary shares outstanding

Number of outstanding shares at the beginning of the period, adjusted by the number of shares issued during the period weighted by the number of days that the shares were outstanding in relation to the total number of days during the period.

Debt ratio

Net debt on the balance sheet date in relation to twelve months forward net operating income less central administration costs.

Earnings per ordinary share

Profit after tax in relation to the average number of ordinary shares outstanding.

Economic occupancy rate

Annual contracted rental value divided by rental value excluding project properties.

EPRA EPS

Profit from property management less current tax and deferred tax on loss carry forward and untaxed reserves per ordinary share.

EPRA NRV

Equity¹) with reversal of derivatives and deferred tax related to fair value of properties and derivatives.

EPRA NTA

EPRA NRV less intangible assets and estimated fair value of deferred tax, 5.15 per cent.

EPRA NDV

EPRA NTA with the reversal of intangible assets, derivatives and deferred tax related to goodwill from transactions.

Equity per ordinary share

Equity¹) on the balance sheet date in relation to the number of ordinary shares outstanding before any dilution.

Interest-bearing net debt

Interest-bearing liabilities minus interest-bearing assets and cash and cash equivalents.

Interest coverage ratio

Net operating income less central administration costs divided by interest expenses and interest income (excl. site leasehold and IFRS 16) for the most recent 12-month period.

Loan-to-value ratio

Interest-bearing liabilities after deduction of cash and cash equivalents in relation to the fair value of the properties.

Net asset value (NRV) per ordinary share

Equity¹) with reversal of deferred tax liability attributable to changes in the value of properties and temporary differences between fair value and residual tax value of properties as well as profit from changes in the value of derivatives, in relation to the number of ordinary shares outstanding, after any dilution, on the balance sheet date.

Profit from property management per ordinary share

Profit from property management in relation to the average number of ordinary shares outstanding.

Rental income excluding rent supplement

Rental income adjusted for revenue for charged media costs to show fixed rental income plus index surcharges.

Return on equity

Profit after tax on an annual basis divided by the average of opening and closing equity¹). At the interim financial statements, the return has been restated on a full-year basis without taking into account seasonal variations that normally occur in the business.

Solidity

Equity as a percentage of total assets.

Surplus ratio

Net operating income as a percentage of rental income.

Yield

Net operating income according to earnings capacity excluding project properties in relation to the fair value of investment properties, excluding project properties.

¹) Equity attributable to parent company shareholders.

Other definitions

Share price per ordinary share

Share price on the balance sheet date.

Number of investment properties

The number of investment properties on the balance sheet includes properties under current management and project properties.

Number of ordinary shares outstanding

Number of ordinary shares outstanding on the balance sheet date.

Building rights

Estimated buildable gross area, gross area, in square meters.

Central administration

Central administration costs refer to costs for Group Management and Group-wide functions.

Extendable swap

A combination of a customary interest rate swap and a swaption where Logistea has bought an interest rate swap and sold or issued a swaption. At the end of the term, the counterparty, the bank, has the option (not the right) to extend the interest rate swap for a predetermined number of years. The counterparty may extend the interest rate swap if the market interest rate is below the fixed rate at which the interest rate swap was subscribed.

Average interest rate

Average borrowing rate for interest-bearing liabilities on the balance sheet date.

Average fixed interest rate

Average remaining maturity of interest on interest-bearing liabilities.

Rental value

Annual contract value plus estimated market rent for vacant premises.

Net lettings

Rental value for the period's newly signed lease agreements less the rental value for the period's terminations, renegotiations and bankruptcies.

Unrealised changes in value

Change in fair value excluding acquisitions, divestments and investments for the period.

Performance swap

A combination of an interest rate swap and an interest rate cap where Logistea bought an interest rate swap and sold/issued an interest rate cap. The fixed interest rate in the interest rate swap is paid as long as the 3-month Stibor is below the respective chosen barrier level at any given interest rate setting period. Should the 3 month Stibor be at or above the respective barrier level prior to a new interest rate setting period, then the interest rate hedging for that interest period expires and Logistea pays the 3-month Stibor until the 3-month Stibor falls below the barrier level again, at which point Logistea will again pay the fixed interest rate in the current performance swap.

Project properties

Properties where ongoing renovation or extension affects the rental value by more than 40 per cent.

Interest rate swap

A derivative contract in which two parties exchange interest flows over a fixed period of time. One party may exchange its variable interest rate for a fixed rate, while the other party receives a fixed rate in exchange for a variable rate. As Logistea's debt portfolio consists of variable bank and bond loans with a fixed margin, but with a variable component in the form of 3-month Stibor, Logistea has chosen to purchase interest rate swaps in order to pay a fixed interest rate and receive the Stibor 3-month interest rate. In this way, Logistea has fixed the interest rate for part of the loans.

Interest rate cap

A ceiling is set for the variable interest rate in the form of a predetermined interest rate level (barrier). If the variable interest rate goes above the barrier level, Logistea receives the interest rate above the barrier level.

Secured loan-to-value ratio

Secured liabilities after deduction of cash and cash equivalents in relation to the fair value of the properties.

Logistea in brief

Logistea AB (publ) is a Swedish real estate company with a vision of being the natural long-term partner to companies that demand sustainable and modern premises for warehouses, logistics and light industry. The vision is realized through the company's business concept of acquiring, developing and managing properties and land. The company' s shares are listed on Nasdaq Stockholm Mid Cap under the tickers LOGI A and LOGI B.

Operational objectives

• 50 per cent of the loan portfolio consists of green financing by the end of 2027.

Financial targets and risk limits

• Profit from property management per ordinary share shall increase by at least 15 per cent per year on average over a five-year period.
• Net asset value per ordinary share shall increase by at least 15 per cent per year on average over a five-year period.
• The loan-to-value ratio shall amount to a maximum of 60 per cent in the long term.
• The interest coverage ratio must exceed 1.8 times.

Dividend policy

The Board's objective is to propose to the Annual General Meeting annually to resolve on a dividend corresponding to at least 30 per cent of the company's profit. The Board of Directors intends to prioritise growth over dividends in the coming years, which may result in low or no dividends to ordinary shares.

Financial calendar

Interim Report Q3 2024 2024-10-25 Year-end report 2024 2025-02-13 Interim Report Q1 2025 2025-05-07

Contact

Niklas Zuckerman CEO Niklas.zuckerman@logistea.se +46 (0)708 39 82 82

Philip Löfgren CFO Philip.lofgren@logistea.se +46 (0)705 91 15 45

This information is information that Logistea AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact persons set out above, at 07:30 CEST on October 25, 2024.