Pandox — Interim / Quarterly Report 2024

Apr 25, 2024

• Revenues for Leases amounted to MSEK 845 (780). For comparable units in fixed currency, the increase was 2 percent
• Revenues for Own Operations amounted to MSEK 656 (573) MSEK. For comparable units in fixed currency, the increase was 6 percent
• Net operating income for Leases amounted to MSEK 694 (662). For comparable units in fixed currency, the increase was 2 percent

• Net operating income for Own Operations amounted to MSEK 91 (52). For comparable units in fixed currency, the increase was 22 percent

• EBITDA amounted to MSEK 740 (675), an increase of 10 percent

• Cash earnings amounted to MSEK 272 (259), equivalent to SEK 1.48 (1.41) per share
• Changes in property values amounted to MSEK 34 (-212) MSEK. Unrealised changes in value of derivatives amounted to MSEK 298 (-344)

• Profit for the period amounted to MSEK 454 (-203), equivalent to SEK 2.43 (-1.17) per share

• The timing of Easter in March had a negative effect on total revenues of approximately 2 percentage points in the quarter

• 26 February an agreement to divest DoubleTree by Hilton Montreal in Canada was made. The divestment includes both the hotel property and the hotel operations with a transaction price of approximately MCAD 80, equivalent to approximately MSEK 630. The deal was closed in the second quarter and the property was transferred 15 April

				apı 25 -
		Jan-Mar		mar '24	Full-year
MSEK	2024	2023	Δ%	R12m	2023
Total revenue	1,501	1,353	11	6,997	6,849
- Of which Leases	845	780	8	3,755	3,690
- Of which Own Operations	656	573	14	3,242	3,159
Total net operating income	785	714	10	3,941	3,870
- Of which Leases	694	662	5	3,189	3,157
- Of which Own Operations	91	52	75	752	713
EBITDA	740	675	10	3,761	3,696
Profit for the period	454	-203	n.a	77	-580
Earnings per share, SEK	2.43	-1.17	n.a	0.42	-3.18
Cash earnings	272	259	5	1,755	1,742
Cash earnings per share, SEK	1.48	1.41	5	9.55	9.48
Market value properties	71,317	69,695	2	71,317	69,039
Investments	241	236	2	927	922
Net interest-bearing debt	33,256	32,188	3	33,256	32,190
Loan to value net, %	46.6	46.2	n.a	46.6	46.6
Net interest-bearing debt/EBITDA, times	8.8	9.2	n.a	8.8	8.7
Average interest rate, end of period, %	4.2	3.9	n.a	4.2	4.2
Interest cover ratio, times	2.0	2.3	n.a	2.6	2.7
EPRA NRV per share, SEK	208.55	204.93	2	208.55	201.12

The hotel market developed in a positive direction in the first quarter, which is the seasonally slowest of the year, despite a negative effect from the timing of the Easter holiday in March. Total revenue and net operating income increased by 3 and 4 percent respectively for comparable units in fixed currency. Supported by past acquisitions, our Own Operations business segment contributed more in relative terms to the earnings improvement during the quarter. The timing of the Easter holiday in March had a negative effect on total revenue of around 2 percentage points during the quarter. This is expected to be neutralised in the second quarter. Cash earnings increased by 5 percent and EPRA NRV growth, with dividend added back, was 3 percent measured on an annualised basis.

Net unrealised changes in value for the whole property portfolio remained unchanged. This is explained by stable cash flows and continuing improvement in the credit market. The average valuation yield for the hotel property portfolio increased by one point to 6.25 percent, compared with 6.24 percent at the end of 2023. This was more than 200 basis points higher than our average interest rate, end of period.

The financing climate improved further during the quarter. We refinanced loans equivalent to around MSEK 3,000 – the majority of which in the Nordics – with a three-year maturity and with a lower margin of credit than previously. The equivalent of around MSEK 2,100 of these loans have been sustainabilitylinked, which means that around 12 percent of the total loan portfolio is now sustainability-linked.

Around 18 percent of our credit facilities have a maturity of less than one year and around MSEK 3,000 of this matures in the fourth quarter of 2024. Based on discussions currently under way, we are expecting a lower margin of credit in future refinancing. The risk appetite of the banks has increased and the prospects of new financing on reasonable terms are better than they have been for a long time. Combined with the fact that the markets are expecting interest rates to be lowered, this is creating the right conditions for increased activity in the transaction market, while also supporting the valuation prospects of the properties.

Adjusted for dividends paid in April, our loan-to-value ratio amounted to 47.7 percent, which is still at the lower end of the range in our financial policy. Our interest coverage ratio, measured on a rolling 12 month basis, was 2.6x and our interest-bearing net debt/EBITDA ratio was a modest 8.8x.

Activity in the hotel transaction market has been very low in recent years and our acquisition pace has been lower than we would have liked. We have nevertheless acquired six hotel properties since 2020 for a total value equivalent to around MSEK 3,000. These acquisitions are in line with our strategy regarding active ownership. We have leveraged the uncertainty in the market – above all for the hotel properties with own operations – where the valuations have been particularly attractive. During the same period we divested four hotel properties for a total value equivalent to around MSEK 1,400, where we determined that we could reallocate the capital to acquisitions and projects with higher yield potential. The sale of DoubleTree by Hilton Montreal, which was concluded in April, is one such example.

Acquisitions are an important growth driver for us – both due to the immediate addition of revenue and net operating income from the acquisitions and because they provide a foundation for value creation over time.

As and when the financing market normalises, activity in the transaction market will pick up and this should create interesting opportunities for us. Although our Leases segment is our core business, our Own Operations segment provides an important tool for both acquisitions and transformation of products and lease types over time.

Scandic Nürnberg Central is a good example of a hotel property where, by acquiring, renovating and leasing out the property, we have created significant value and also laid the foundation for future valuecreation in partnership with Scandic. On the same theme, we are looking forward to the reopening of Citybox Brussels and of Scandic Go Fridhemsplan in Stockholm later this year.

Seasonally, the first quarter is slow and this year was also negatively impacted by the Easter dates, although this will be neutralised in the second quarter. As previously stated, for the full year we anticipate some RevPAR growth in the hotel market. Drivers of this include a strong event calendar in Germany, with the UEFA European Championship in June–July, and stable market conditions in other markets. We also have several substantial ongoing projects that will contribute positively to our earnings and value growth, through annual net operating income equivalent to around MSEK 300 with full effect in 2026, around MSEK 130 of which is expected in 2024.

Hotel demand is dependent on economic activity and the most significant risk is still the consequences of geopolitical tensions on economies and travel. Here, our exposure to mainly domestic and regional demand is an advantage. With that said, it appears that the market interest peak has passed and the prospects for an improved business climate are relatively good, which is positive for the hotel market.

The Group's total revenues amounted to MSEK 1,501 (1,353), an increase of 11 percent supported by an increased occupancy rate and a stable average price development in both business segments. The timing of Easter in March had a negative effect on total revenues of approximately 2 percentage points in the quarter.

Total net operating income amounted to MSEK 785 (714), an increase of 10 percent. The net operating income increased in both business segments.

Central administration costs amounted to MSEK -51 (-45).

Depreciation within Own Operations amounted to MSEK -70 (-67). Depreciation of MSEK -6 (-6) are included in administration costs.

Net financial items amounted to MSEK -414 (-336). The increase is mainly explained by higher interest costs due to a higher average interest rate.

Current tax amounted to MSEK -45 (-65). Deferred tax amounted to MSEK -83 (152). See also Note 6 on page 22.

Cash earnings amounted to MSEK 272 (259), an increase of 5 percent. Cash earnings per share amounted to SEK 1.48 (1.41).

Changes in property values amounted to MSEK 34 (-212), of which MSEK 105 refers to unrealised changes in value Investment Properties and MSEK -71 refers to Assets held for sale.

Realised changes in property values amounted to MSEK 0 (198).

Unrealised changes in value of derivatives amounted to MSEK 298 (-344).

Profit for the period amounted to MSEK 454 (-203). Profit for the period attributable to the shareholders of the parent company amounted to MSEK 447 (-216), equivalent to SEK 2.43 (-1.17) per share.

Figures in brackets are from the corresponding period the previous year for profit/loss items and year-end 2023 for balance sheet items, unless otherwise stated.

• •
• •
• •

Rental income and Other property income amounted to MSEK 845 (780), an increase of 8 percent. In the quarter, approximately MSEK 40 is included rental income for previous years regarding a hotel property at Köln Bonn Airport. For comparable units in fixed currency, revenues increased by 2 percent. The timing of Easter in March had a negative effect on revenues of approximately 2 percentage points.

The occupancy rate for comparable hotels amounted to approximately 57 (56) percent. The UK and Belgium were particularly strong markets in the quarter.

Individual destinations with a particularly good growth were Oslo and several regional cities in the UK and Germany.

Costs, including property administration, amounted to MSEK -151 (-118), which includes one-time costs of MSEK -38 related to commercial development.

Net operating income amounted to MSEK 694 (662), an increase of 5 percent. For comparable units in fixed currency, net operating income increased by 2 percent.

The net operating margin was approximately 82 percent.

Adjusted for rental income of MSEK 40 and costs of MSEK -38 the net operating margin was approximately 86 percent.

A new turnover-based lease came into force 1 March with Scandic Hotels for Scandic Nürnberg Central (previously Hotel Pomander).

During the quarter, Pandox has regained registration of its Hereditary Building Right ("HBR") for a hotel property at Köln Bonn Airport.

Leases are the core of our business. The agreements are turnover-based with long terms, a good guaranteed minimum level, shared risk and stable earnings. Guaranteed rents, i.e. contracted minimum rents plus fixed rents, amount to approximately MSEK 2,100 measured at an annual rate.

• •
• •
• •

Revenues from Own Operations amounted to MSEK 656 (573), an increase of 14 percent. For comparable units at fixed currency, revenues and RevPAR increased by 6 and 12 percent respectively. The timing of Easter in March had a negative effect on revenues of approximately 2 percentage points.

Hotel demand was good and average prices rose. The occupancy ratio for comparable hotels amounted to approximately 55 (52) percent.

The best performing hotels in the quarter was Hilton Belfast (UK), Hilton Garden Inn London Heathrow Airport (Heathrow, UK), DoubleTree by Hilton Bath (UK) and Hotel Hubert (Brussels, Belgium).

Costs amounted to MSEK -635 (-588). The increase is mainly explained by an increased activity in the hotels.

Net operating income (EBITDA) amounted to MSEK 91 (52), equivalent to a margin of 14 (9) percent. The margin increase is explained by higher business volumes and improved productivity. For comparable units at fixed currency, net operating income increased by 22 percent.

26 February an agreement to divest DoubleTree by Hilton Montreal in Canada was made. The divestment includes both the hotel property and the hotel operations with a transaction price of approximately MCAD 80, equivalent to approximately MSEK 630. The deal was closed in the second quarter and the property transferred 15 April.

Own Operations are hotel operations we run in properties we own ourselves. It is an important part of our active ownership model. It gives us valuable opportunities to acquire and reposition hotel properties with the aim of creating value through new leases or realising value through divestment.

Despite geopolitical instability and lower economic activity, 2024 started positively for the European travel and hotel industry. Intra-European travel is back at pre-pandemic levels while inbound travel from North America was record high in 2023. Asian inbound travel, which in large parts has yet to recover, is now clearly starting to return to Europe. Asian inbound travel to Heathrow and Frankfurt increased by more than 20 percent in the first quarter.

The first quarter followed a normal demand pattern and is the seasonally weakest quarter of the year. The timing of Easter in March had a negative effect in the quarter in comparison to last year when Easter fell in April, an effect which will be neutralised in the second quarter.

• Both occupancy and average price developed well in Europe in the quarter. Average prices increased by some 4 percent to EUR 125.
• The occupancy ratio increased to 61 percent from 60 percent, an increase of some 2 percent.
• In total, RevPAR in Europe amounted to EUR 76 in the quarter, an increase of more than 6 percent.

The occupancy ratio in the Nordics amounted to 53 percent, which was marginally lower than in the corresponding period last year. Average prices exceeded the level from 2023 by almost 3 percent. In total, RevPAR increased by more than 1 percent.

• In the Nordics, RevPAR continued to be the strongest in Norway (+5 percent), while decreasing by 1 percent in Sweden, mainly due to a negative Easter effect and challenging market conditions in Gothenburg with many new hotel openings.
• In Germany, RevPAR increased by more than 7 percent, primarily due to increased occupancy from increased inbound travel and stronger demand in the important segments for trade fairs and congresses.
• UK Regional developed well with a RevPAR increase of some 3 percent, explained in full by increased average prices.
• RevPAR in Ireland decreased by 3 percent. The decrease, from high levels, is explained by several new hotel openings in Dublin and increased VAT for hotel nights.
• In Brussels, RevPAR increased by 4 percent supported by increased international demand.

The chart shows RevPAR development for a selection of countries, regions and cities compared to the same period last year, based on market data from STR and the Benchmarking Alliance. ADR/average price is shown on the vertical axis and OCC/occupancy on the horizontal axis. The centre of the chart (origo) corresponds to the ADR/average price and OCC/occupancy rate for the corresponding period of the previous year. The percentage figure indicates the RevPAR change compared to the corresponding previous year.

• 8 February 2024

Pandox AB (publ) year-end report January-December 2023.

• 26 February 2024

Pandox AB (publ) has entered into an agreement to divest DoubleTree by Hilton Montreal in Canada. The sale includes both hotel property and hotel operations with a transaction price of approximately MCAD 80, equivalent to approximately MSEK 630. Closing took place in the beginning of the second quarter 2024.

• 8 March 2024

Pandox AB (publ) publishes its annual report for 2023. In the annual report we describe, among other things, the drivers of growth in the hotel market, Pandox's business model and success factors, and our progress in sustainability.

• 10 April 2024

Bulletin from the annual general meeting in Pandox Aktiebolag (publ) on 10 April 2024.

Leonardo Hotel Galway, Ireland, 130 rooms.

At the end of the period, Pandox's property portfolio had a total market value of MSEK 71,317 (69,039), of which Investment Properties accounted for MSEK 59,044 (57,226) and Operating Properties for MSEK 12,273 (11,813).

Over the past twelve months, external valuations were performed for around 98 percent of the hotel properties and are in total in line with the internal valuations, measured in value. External valuations were performed in the first quarter for around 34 percent of Pandox's hotel property portfolio, measured in value.

For the first quarter 2024, unrealised changes in value of Investment Properties amounted to MSEK 105. The increased valuation yield of 0.01 percentage points had a negative impact of MSEK -26, while increased cash flows had a positive impact of MSEK 131 through Pandox's turnoverbased leases. Divestments of MSEK -69

corresponds to Assets held for sale of MSEK -71 less depreciation during the quarter (see Note 7).

Net unrealised changes in the value of Operating Properties amounted to MSEK -105 (reported for disclosure purposes only). The decreased valuation yield of 0.04 percentage points had a positive impact of MSEK 32 while decreased cash flows had a negative impact of MSEK -137.

MSEK	Investment properties	Operating properties	Total market value
Market value beginning of the period 1 January	57,226	11,813	69,039
Acquisitions	0	0	0
Divestments	-69	-	-69
Investments	177	64	241
Disposals	-	-	-
Unrealised changes in value	105	-105	-
Change in currency exchange rates	1,605	501	2,106
Market value end of period 31 Mar	59,044	12,273	71,317
Influencing factors
Yield	-26	32	6
Cash flow	131	-137	-6
Sum unrealised changes in value	105	-105	-
Average valuation yield % Q1 2024	6.10	6.98	-
Average valuation yield % Q4 2023	6.09	7.02	-
Average valuation yield % Q3 2023	5.92	6.95	-

Action	Hotel property	Date
Divestment Own Operations	DoubleTree by Hilton Montreal	Q2 2024
Acquisition Own Operations	Hilton Belfast	Q3 2023
Reclassification to Leases	Hotel Mayfair, Copenhagen	Q1 2023
Acquisition Leases	Best Western Hotel Fridhemsplan	Q1 2023
Acquisition Own Operations	The Queens Hotel Leeds	Q1 2023
Divestment Own Operations	InterContinental Montreal	Q1 2023

The value of Operating Properties is reported for disclosure purposes and is included in EPRA NRV, EPRA NDV and EPRA NTA calculations. The Operating Properties' carrying amounts recognised in the condensed consolidated statement of financial position are equivalent to cost minus depreciation and any impairment losses and amounted to MSEK 9,226 (8,842) at the end of the period.

For more information on property valuation, see Annual Report 2023 Note E.

At the end of the period Pandox's property portfolio consisted of 158 (157) hotel properties with 35,613 (35,490) hotel rooms in eleven countries.

As of 31 March, Dorint Parkhotel Bad Neuenahr is included at land value only. The hotel has been closed due to flooding since July 2021. Insurance compensation was received in 2023.

Pandox's main geographical focus is Northern Europe. Germany (23 percent) is Pandox's single largest geographical market, measured as a percentage of the property portfolio's total market value, followed by Sweden (22 percent), UK (20 percent), Belgium (8 percent) and Finland (6 percent).

More than 80 percent of the total portfolio market value is covered by external leases. Pandox's tenant base consists of highly reputable hotel operators with strong hotel brands.

On 31 March 2024 Investment Properties had a weighted average unexpired lease term (WAULT) of 14.9 years (15.0).

	Numb	er	Market value (MSEK)
Leases	Hotels	Rooms	Per country	In % of total	Per room
Sweden	42	9,107	15,500	22	1.7
Germany	32	6,633	13,146	18	2.0
UK	20	4,821	11,185	16	2.3
Finland	12	2,742	4,601	6	1.7
Norway	14	2,573	3,321	5	1.3
Denmark	8	1,843	4,228	6	2.3
Austria	2	639	1,635	2	2.6
Belgium	3	765	1,474	2	1.9
Ireland	3	445	1,711	2	3.8
Switzerland	1	206	943	1	4.6
The Netherlands	1	189	1,301	2	6.9
Sum Leases	138	29,963	59,044	83	2.0
Own Operations
Belgium	7	1,968	4,461	6	2.3
Germany	5	1,490	3,920	5	2.6
UK	5	1,221	2,804	4	2.3
Canada*	1	595	629	1	1.1
The Netherlands	1	216	430	1	2.0
Finland	1	160	29	0	0.2
Sum Own Operations	20	5,650	12,273	17	2.2

	Number
Brand	Hotels	Rooms	In % of total
Scandic	50	11,209	31
Leonardo	38	7,957	22
Hilton	10	3,042	9
Independent	11	2,855	8
Radisson Blu	8	2,033	6
Strawberry	11	1,949	5
NH	7	1,681	5
Dorint	4	847	2
Mercure	3	610	2
Elite Hotels	2	493	1
Holiday Inn	2	469	1
Novotel	2	421	1
Others	10	2,047	6
Total	158	35,613	100

^*DoubleTree by Hilton Montreal was divested and transferred on 15 April 2024.

For more information about Pandox's portfolio, visit www.pandox.se

A large and well-diversified portfolio offers good opportunities for value-creating and growth-driving investments. Pandox maintains an ongoing dialogue with each tenant on joint investment projects to further increase the hotel's revenue and profitability. For example, new beds in existing rooms, new rooms in existing hotel properties or new rooms through extensions to existing hotel properties.

In the period January–March 2024, investments in property, plant and equipment, excluding acquisitions, amounted to MSEK 241 (235), of which MSEK 177 (121) was for Investment Properties and MSEK 64 (114) for Operating Properties.

At the end of the period, approved investments for ongoing and future projects amounted to around

MSEK 1,360, of which around MSEK 710 is for projects that are expected to be completed in 2024.

The cost of maintenance in the first quarter of 2024 was MSEK 15 (14).

During the ongoing renovation and repositioning of Hotel Mayfair in central Copenhagen we signed a long-term, attractive, revenue-based lease with hotel operator Strawberry and the Hobo brand. We took over operation of the hotel in 2020, and through active measures we have generated significant value growth for this hotel property.

	Number of
Property	rooms	City, country	Segment	Type of investment	Investment size	Status 1	Remaining	Completed
DoubleTree by Hilton Brussels	354	Brussels, Belgium	0	O, E, P, T, H	XL	Open	50%	Late 2025
Radisson Blu Glasgow	247	Glasgow, UK	0	Р, Т, Н	Medium	Open	40%	Q4 2024
Hotel Mayfair	203	Copenhagen, Denmark	O (L)	O, E, P, T, H	Medium	Open	50%	H2 2024
Scandic Go Fridhemsplan	234	Stockholm, Sweden	L	E, P, T, H	Medium	Closed	50%	H2 2024
Citybox Brussels	246	Brussels, Belgium	L	O, P, T, H	Medium	Closed	50%	H2 2024
Leonardo Royal Frankfurt	449	Frankfurt, Germany	L	P, T, H	Smaller	Open	60%	Q3 2024
Leonardo Royal Baden-Baden	121	Baden-Baden, Germany	L	P, T, H	Smaller	Open	90%	Q2 2024
Leonardo Hotel Glasgow	321	Glasgow, UK	L	Р, Т, Н	Smaller	Open	30%	Q4 2023

Business segment		Categories		Size range (MS	EK):
Leases	L	Repositioning	0	Running	0-30
Own Operations	0	Expansion	Е	Smaller	30-90
		Product	P	Medium	90-150
		Technical	Т	Large	150-250
		Sustainability	Н	XL	250-

One of Glasgow's foremost lifestyle hotels, Radisson Blu Glasgow has upgraded all 247 rooms as part of a major renovation project. The hotel has also added several apartmentlike rooms with two or three beds, complete with a living room and dining area, and has introduced new family rooms. Investments in the spa and conference offering are under way, with completion expected in 2024.

At the end of the period the loan-to-value net was 46.6 (46.6) percent. Equity attributable to the Parent Company's shareholders amounted to MSEK 30,883 (29,573). EPRA NRV amounted to MSEK 38,342 (36,7976), equivalent to SEK 208.55 (201.12) per share. Cash and cash equivalents plus unutilised credit facilities amounted to MSEK 2,945 (3,147) and there are several unpledged properties with a value of approximately MSEK 3,800 in total. In addition, there are additional unutilised credit facilities that, at any given time, fully cover the issued volume under the Pandox commercial paper programme.

At the end of the period the loan portfolio amounted to MSEK 33,958 (32,960), excluding loan arrangement fees. Unutilised credit facilities, after deduction of commercial paper, amounted to MSEK 2,243 (2,378) and the volume issued under the commercial paper programme amounted to MSEK 1,160 (816). Commercial paper is only used to optimise Pandox's financial cost via interest rate arbitrage.

Commercial paper aside, all Pandox's debt financing is bank financing only with loans secured by a combination of mortgage collateral and pledged shares. Pandox has a geographically diversified lender base consisting of 14 Nordic and international banks, and AMF Tjänstepension AB.

Per 31 March 2024, the average repayment period was 2.2 (2.3) years, the average fixed interest rate period was 3.3 (3.9) years, and the average interest rate level, including effects from interestrate derivatives, but excluding accrued arrangement fees, was 4.2 (4.2) percent, which also is a reasonable approximation for the expected level at the end of the second quarter 2024, given unchanged market rates.

At the end of the period the interest cover ratio (measured on rolling twelve months) was 2.6 times.

Short-term credit facilities maturing in less than twelve months amount to MSEK 6,673, of which MSEK 3,095 matures in the fourth quarter 2024.

During the first quarter of 2024, Pandox has carried out refinancing of previous short-term debt corresponding to a total of approximately MSEK 3,000, in the UK and Denmark, with a three-year tenor.

During the first quarter, Pandox has sustainabilitylinked an additional bank loan with SEB totalling approximately MSEK 2,100. As of 31 March 2024, the total sustainability-linked loan volume amounts to MSEK 4,381. The credit margin of the bank loans is linked to the annual outcome of three welldefined environmental, social and governance (ESG) sustainability targets, which will also be reported in the annual sustainability report.

	Jan-Mar	Jan-Mar
MSEK	2024	2023	2023
Net interest-bearing debt	33,256	32,188	32,190
Cash and cash equivalents and unutilised credit facilities	2,945	3,843	3,147
Average fixed interest period, years	3.3	2.7	3.9
Average repayment period, years	2.2	2.1	2.3
Average interest rate end of period, %	4.2	3.9	4.2
Interest cover ratio, times	2.0	2.3	2.7
Loan to value net, %	46.6	46.2	46.6
Net interest-bearing debt/EBITDA, times	8.8	9.2	8.7

Year due (MSEK)	Credit facilities1)
< 1 year	6,673
1–2 year	13,006
2–3 year	7,293
3–4 year	4,381
4–5 year	4,849
> 5 year	-
Total	36,201

1) Excluding contractual amortisation.

On group level, Pandox's financial covenants are loan-to-value and interest cover ratio.

	Jan-	Full-year
MSEK	2024	2023	2023
Financial income	5	8	31
Interest costs	-365	-290	-1,366
Average interest rate, end of period, %	4.2	3.9	4.2
Other financial costs	-26	-28	-131
Total debt costs, %	4.5	4.2	4.6
Financial costs right of use assets	-28	-26	-108
Sum net financial items	-414	-336	-1,574

The increase in costs compared to the corresponding quarter last year is mainly explained by increased interest costs on bank loans due to higher average interest rates.

	SEK	DKK	EUR3)	CHF	CAD	NOK	GBP	Total
Sum credit facilities, MSEK 1)	9,729	2,431	15,859	536	-	1,107	6,538	36,201
Sum interest bearing debt, MSEK 1)	7,083	2,431	16,263	536	_	1,107	6,538	33,958
Share of debt in currency, %	20.9	7.2	47.9	1.6	-	3.3	19.3	100
Average interest rate, % 2)	3.3	4.0	3.6	4.3	-	5.7	6.2	4.2
Average interest rate period, years	3.6	1.1	3.4	0.2	-	3.5	3.9	3.3
Market value Properties, MSEK1)	15,500	4,228	32,708	943	629	3,321	13,988	71,317

¹⁾ Converted to MSEK

To reduce the currency exposure in foreign investment Pandox's aim is to finance the investment in local currency. Equity is normally not hedged as Pandox's strategy is to have a long investment perspective. Currency exposures are largely in form of currency translation effects.

Pandox's bank financing is with variable interest rate. In order to manage interest rate risk and increase the predictability of Pandox's earnings, interest rate derivatives are used.

Per 31 March 2024, the gross nominal volume of interest rate derivatives amounted to MSEK 32,912, including forward starting swaps. At the same time, the net nominal volume of interest rate derivatives amounted to MSEK 25,287. The net volume is the portion of Pandox's loan portfolio for which interest rates are hedged.

Approximately 76 percent of Pandox's net debt was thereby hedged against interest rate movements for periods longer than one year and the average fixed rate period was 3.3 (3.9) years.

	Total interest ma	turity	Interest r	Interest maturity derivatives
				Α·	verage interest rate
Tenor (MSEK)	Amount 1)	Share, %	Volume	Share, %	derivatives, %
< 1 year	8,671	26	-	-	-
1–2 year	3,085	9	3,085	12	0.7
2–3 year	4,431	13	4,431	18	0.9
3–4 year	4,763	14	4,763	19	1.4
4–5 year	5,683	17	5,683	22	0.8
> 5 year	7,325	22	7,325	29	1.9
Sum	33,958	100	25,287	100	1.2

¹⁾ Share of loans with an interest rate reset during the period.

The market value of the derivatives portfolio is measured on each closing date, with the change in value recognised in profit or loss. Upon maturing, the market value of a derivative contract is dissolved entirely and the change in value over time thus does not affect equity.

At the end of the period, the net market value of Pandox's financial derivatives amounted to MSEK 1,354 (1,055).

		Average rate		R	ate at end-of-perio	d
	2024	2023	Change %	2024	2023	Change %
Euro (EUR)	11.279	11.197	1%	11.525	11.276	2%
British pound (GBP)	13.173	12.676	4%	13.478	12.814	5%
Danish krone (DKK)	1.513	1.504	1%	1.545	1.514	2%
Norwegian krone (NOK)	0.988	1.020	-3%	0.985	0.995	-1%
Canadian dollar (CAD)	7.705	7.713	0%	7.855	7.640	3%
Swiss franc (CHF)	11.886	11.279	5%	11.801	11.323	4%

Effect on earnings before changes in value	Change	MSEK
Current fixed interest hedging, change in interest rates, with derivatives	+/- 1%	-/+ 74
Current fixed interest hedging, change in interest rates, without derivatives	+/- 1%	-/+ 327
Remeasurements of interest-rate derivatives following shift of yield-curves	+/- 1%	+/- 923

²⁾ Average interest rate including margin and derivatives, excluding arrangement fee for loans.

³⁾ Part of the interest-bearing debt is part of credit facilities in SEK, which can be drawn in multiple currencies, including EUR.

• During the first quarter, Pandox has sustainability-linked an additional bank loan with SEB totalling approximately MSEK 2,100.
• Hotel Mayfair, Copenhagen, was certified in accordance with BREEAM In Use Very Good
• Pandox Science Based Targets:
• Design and planning for a new climate change project in Own Operations (Scope 1 and 2). See more information below
• Start-up and planning of a green investment programme for Scope 3

Pandox's sustainability work will contribute to sustainable properties, sustainable operations and create new business opportunities. The Company's overall sustainability goal is to offer its tenants resource-efficient hotel properties that contribute to the UN Sustainable Development Goals, reduce climate impact and enable good management of climate risks.

Pandox has defined the most important sustainability areas and divided them into five focus areas:

• 1. Environment and climate
• 1. Responsible and fair business
• 1. Guest satisfaction and safety
• 1. Attractive and equal workplace
• 1. Inclusive local communities

Pandox's science-based climate targets have been approved by the Science Based Targets initiative (SBTi). They mean that by 2030 Pandox will reduce greenhouse gas emissions in Own Operations (Scope 1 and 2) by 42 percent, while emissions in Leases (Scope 3) will be reduced by 25 percent.

Pandox has decided to invest MEUR 29 in a climate transition project for eight hotel properties in Own Operations. When the project is completed in 2027, we are expected to reach the SBTi-validated emission targets for Own Operations. The project will gradually generate cost savings, which by the end of 2027 are estimated to amount to MEUR 3 annually. The climate transition project consists of phasing out oil and gas, upgrading or replacing obsolete technical systems for energy optimisation, as well as renewable energy and behavioural change.

An earlier investment programme in Own Operations has been completed according to plan. In total, approximately MEUR 7 has been invested to reduce climate impact through energy and water reduction projects and technology installations. The goal was to reduce energy, gas and water consumption by 35 percent, 25 percent and 20 percent respectively, and to reduce CO2 emissions by 20 percent. The investment programme's expected financial return of 20 percent has so far been fulfilled.

Sustainability overview Own Operations	2023	2022	Δ%	2021
Resource efficiency
Total energy consumption, kWh/sqm	204	230	-11%	214
Total energy consumption, kWh/gn	36	44	-18%	99
Total water consumption, l/gn	174	219	-21%	304
Waste per hotel guest, kg	1,2	n.a	n.a	n.a
Renewable energy
Total of renewable energy, %	42%	49%	n.a	48%
Emission reduction
Total emissions, CO2e/sqm	27	23	17%	23
Sustainability certification
Total number of BREEAM In Use-certified properties on leve
Good	13	12	8%	5
Green key certification of operations, number	14	16	-13%	14
Total, Pandox group	2023	2022	Δ%	2021
Key social indicators
Employee satisfaction, %	77	77	0%	78
Supplier key figures
Number of suppliers audited	37	48	-23%	82
Sustainability overview Leases	2023	2022	Δ%	2021
Resource efficiency
Total energy consumption, kWh/sqm	218	210	4%	189
Total energy consumption, kWh/gn	37	42	-12%	62
Total water consumption, l/gn	183	184	-1%	311
Renewable energy
Total of renewable energy, %	40%	39%	n.a	39%
Emission reduction
Total emissions, CO2e/sq m	31	35	-11%	35
Larger ongoing investment projects	Total amount	Remaining	(	Completed
Climate transition project	29 MEUR	90%		2027

GROUP RESULTS ANALYSIS

Summary of financial reports

Condensed consolidated statement of comprehensive income

	Jan-I	Лar	Full-year
MSEK	2024	2023	2023
Revenues Leases
Rental income	812	743	3,548
Other property income	33	37	142
Revenue Own Operations	656	573	3,159
Total revenues	1,501	1,353	6,849
Costs Leases	-151	-118	-533
Costs Own Operations	-635	-588	-2,729
Gross profit	715	647	3,587
- whereof gross profit Leases	694	662	3,157
- whereof gross profit Own Operations	21	-15	430
Central administration	-51	-45	-197
Financial income	7	10	31
Financial expenses	-393	-320	-1,498
Financial cost right of use assets	-28	-26	-108
Profit before changes in value	250	266	1,815
Changes in value
Changes in value properties	34	-212	-1,107
Changes in value derivatives	298	-344	-1,205
Profit before tax	582	-290	-497
Current tax	-45	-65	-375
Deferred tax	-83	152	292
Profit for the period	454	-203	-580

	Jan-I	Mar	Full-year
MSEK	2024	2023	2023
Items that may not be classified to profit or loss, net after tax
This year's revaluation of tangible non-current assets	-	-	39
Items that may be classified to profit or loss, net after tax
Net investment hedge of foreign operations	-177	-58	26
Translation differences of foreign operations	1,046	228	-177
Other comprehensive income for the period	869	170	-112
Total comprehensive income for the period	1,323	-33	-692
Profit for the period attributable to the shareholders of the parent company	447	-216	-585
Profit for the period attributable to non-controlling interests	7	13	5
Total comprehensive income for the period attributable to the shareholders of the parent company	1,310	-50	-698
Total comprehensive income for the period attributable to non-controlling interests	13	17	6
Earnings per share, before and after dilution, SEK	2.43	-1.17	-3.18

In Other comprehensive income for the period of MSEK 1,323 is includes tax of MSEK -273, of which MSEK 37 is current tax.

GROUP RESULTS ANALYSIS

Condensed consolidated statement of financial position

	31 N	31 Mar
MSEK		2023	2023
ASSETS
Operating Properties	8,018	8,202	8,273
Equipment and interiors	589	629	580
Investment Properties	59,044	57,719	57,226
Right-of-use assets	2,971	3,250	2,848
Deferred tax assets	394	268	340
Derivatives 1)	1,633	2,176	1,535
Other non-current receivables	90	98	77
Total non-current assets	72,739	72,342	70,879
Current assets
Inventories	17	14	16
Current tax assets	198	161	173
Trade account receivables	447	618	445
Prepaid expenses and accrued income	627	338	648
Other current receivables	432	156	207
Cash and cash equivalents	703	2,004	769
Assets held for sale	629	-	71
Total current assets	3,053	3,291	2,329
Total assets	75,792	75,633	73,208

	31 M	ar	31 Dec
MSEK	2024	2023	2023
EQUITY AND LIABILITIES
Equity
Share capital	460	460	460
Other paid-in capital	7,525	7,525	7,525
Reserves	2,068	1,484	1,205
Retained earnings, including profit for the period	20,830	21,212	20,383
Equity attributable to the owners of the Parent Company	30,883	30,681	29,573
Non-controlling interests	165	219	152
Sum equity	31,048	30,900	29,725
LIABILITIES
Non-current liabilities
Non-current interest-bearing liabilities 2)	27,247	23,417	24,190
Other non-current liabilities	30	3	29
Long-term lease liability	2,949	3,225	2,826
Derivatives 1)	279	259	479
Provisions	41	37	40
Deferred tax liability	5,487	5,359	5,270
Total non-current liabilities	36,033	32,300	32,834
Current liabilities
Provisions	33	19	35
Current interest-bearing liabilities 2)	6,514	10,637	8,580
Short-term lease liability	31	31	30
Tax liabilities	592	342	551
Trade accounts payable	390	399	333
Other current liabilities	243	254	170
Accrued expenses and prepaid income	908	751	950
Total current liabilities	8,711	12,433	10,649
Total liabilities	44,744	44,733	43,483
Total equity and liabilities	75,792	75,633	73,208

¹⁾ The fair value measurement belongs to level 2 in the fair value hierarchy in IFRS, i.e. it is based on inputs that are observable, either directly or indirectly.
2) The carrying amounts of interest-bearing liabilities and other financial instruments constitute a reasonable approximation of their fair value.

	Jan-M	I Iar	Full-year
MSEK	2024	2023	2023
OPERATING ACTIVITIES
Profit before tax	582	-290	-497
Reversal of depreciation	70	68	286
Changes in value, properties	-34	212	1,107
Changes in value, derivatives	-298	343	1,205
Other items not included in the cash flow	-91	-102	40
Taxes paid	-32	-66	-178
Cash flow from operating activities before changes in working capital	197	165	1,963
Increase/decrease in operating assets	-164	330	137
Increase/decrease in operating liabilities	63	151	93
Change in working capital	-101	481	230
Cash flow from operating activities	96	646	2,193
INVESTING ACTIVITIES
Investments in properties and fixed assets	-241	-236	-922
Divestment of hotel properties, net effect on liquidity	67	897	894
Acquisitions of hotel properties, net effect on liquidity	-	-939	-1,465
Acquisitions of financial assets	-12	0	12
Cash flow from investing activities	-186	-278	-1,481
FINANCING ACTIVITIES
New loans	3,160	6,782	12,944
Amortisation of debt	-3,216	-6,911	-14,168
Dividend non-controlling interest	-	-	-17
Paid dividends	-	-	-460
Cash flow from financing activities	-56	-129	-1,701
Cash flow for the period	-146	239	-989
Cash and cash equivalents at beginning of period	769	1,630	1,630
Exchange differences in cash and cash equivalents	80	125	129
Liquid funds end of period	703	2,004	769
Information regarding interest payments
Interest received amounted to	5	8	31
Interest paid amounted to	-375	-272	-1,243
Financial cost right of use assets	-28	-26	-108
Information regarding cash and cash equivalents end of period	703	2,004	769
Sach and each aguivalents consists of hank deposits

Cash and cash equivalents consists of bank deposits.

	-	Attributal	ole to the ow	ners of the pare	ent company
MSEK	Share capital	-	Translation reserves	Revaluation reserve 1)	Retained earnings, incl profit for the period	Total	Non- controlling interests	Total equity
Opening balance equity 1 Jan, 2023	460	7,525	1,131	187	21,428	30,731	202	30,933
Profit for the period	_	_	_	_	-585	-585	5	-580
Other comprehensive income	_	_	-152	39	_	-113	1	-112
Dividend non-controlling interest	_	_	_	_	_	_	-56	-56
Dividend	_	_	_	_	-460	-460	_	-460
Closing balance equity 31 Dec, 2023	460	7,525	979	226	20,383	29,573	152	29,725
Opening balance equity 1 Jan, 2024	460	7,525	979	226	20,383	29,573	152	29,725
Profit for the period	_	_	_	_	447	447	7	454
Other comprehensive income	_	_	863	_	_	863	6	869
Closing balance equity 31 Mar, 2024	460	7,525	1,842	226	20,830	30,883	165	31,048

¹⁾ Refers to the fair value change of hotel properties that have been reclassified from Own Operations to Leases.

Figures in brackets are from the corresponding period the previous year for profit/loss items and year-end 2023 for balance sheet items, unless otherwise stated.

Pandox AB follows the International Financial Reporting Standards (IFRS) and interpretations (IFRIC), as adopted by the EU. This interim report has been prepared according to IAS 34 Interim Financial Reporting and the Swedish Annual Accounts Act. The interim report for the Parent Company has been prepared in accordance with Chapter 9 Interim Reports of the Swedish Annual Accounts Act. The Parent Company applies the Swedish Annual Accounts Act and RFR2 Accounting principles for legal entities. Under RFR2 the parent company of a legal entity applies all EU approved IFRS principles and interpretations within the framework defined by the Swedish Annual Accounts Act and taking into consideration the connection between accounting and taxation. Derivatives are measured at fair value according to Level 2 in the fair value hierarchy under IFRS, based on inputs that are observable, either directly or indirectly. The carrying amounts of interest-bearing liabilities and other financial instruments constitute a reasonable approximation of their fair values. The interim financial statements are included on pages 1–26 and page 1–14 is thus an integrated part of this financial report. The accounting principles applied are consistent with those described in Pandox's Annual Report for 2023.

During the quarter, Pandox has regained registration of its Hereditary Building Right ("HBR") for a hotel property at Köln Bonn Airport. No significant change has taken place in any disputes and insurance cases commented on previously.

FINANCING

Condensed income statement for the parent company

	Jan-Mar		Full-year
MSEK	2024	2023	2023
Total revenues	29	25	112
Administration cost	-61	-55	-245
Operating profit	-32	-30	-133
Profit from participations in Group companies	-	122	964
Other interest income and similar profit/loss items	460	288	1,235
Derivatives, unrealised	144	12	-231
Profit after financial items	572	392	1,835
Year-end appropriations	-	-	352
Profit before tax	572	392	2,187
Current tax	-66	-15	-217
Deferred tax	-37	-8	46
Profit for the period	469	369	2,016
Other comprehensive income for the period	-	-	-
Total comprehensive income for the period	469	369	2,016

Condensed balance sheet for the parent company

	31 N	31 Mar
-current assets erty, plant and equipment ncial non-current assets ent assets I assets ITY AND LIABILITIES ty xed reserves isions	2024	2023	2023
ASSETS
Non-current assets
Property, plant and equipment	10	13	11
Financial non-current assets	22,225	21,401	22,830
Current assets	2,441	1,987	2,054
Total assets	24,676	23,401	24,895
EQUITY AND LIABILITIES
Equity	13,784	12,127	13,314
Untaxed reserves	4	2	4
Provisions	74	58	69
Non-current liabilities	8,190	7,486	7,893
Current liabilities	2,624	3,728	3,615
Total equity and liabilities	24,676	23,401	24,895

Not 3. Parent company

GROUP RESULTS ANALYSIS

Administration for activities within Pandox's property owning companies is provided by staff employed by the Parent Company, Pandox AB (publ). Pandox's subsidiaries are invoiced for these services

Not 4. Transactions with related parties

The Parent Company carries out transactions with subsidiaries in the Group. Such transactions mainly entail allocation of centrally incurred administration cost and interest relating to receivables and liabilities. All related party transactions are entered into on market terms. Eiendomsspar AS owns 5.1 percent of 22 hotel properties in Germany and 9.9 percent of another hotel property in Germany. The acquisitions were made by Pandox in 2015, 2016 and 2019. Pandox has a management agreement regarding Pelican Bay Lucaya Resort in the Bahamas owned by affiliates of Helene Sundt AS and CGS Holding AS. During January–March 2024, revenue from Pelican Bay Lucaya amounted to MSEK 0.3 (0.0).

Segment information

		Q1 2024 (Ja	ın-Mar 2024)		Q1 2023 (Jan-Mar 2023)
MSEK	Leases	Own operation	Group and non- allocated items	Total	Leases	Own operation	Group and non- allocated items	Total
Revenues
Rental and other property income
Leases	845	_	_	845	780	_	_	780
Revenue Own Operations	_	656	_	656	_	573	_	573
Total revenues	845	656	-	1,501	780	573	_	1,353
Costs Leases	-151	_	_	-151	-118	_	_	-118
Costs Own Operations	_	-635	_	-635	_	-588	_	-588
Gross profit	694	21	_	715	662	-15	_	647

Q1 2024 (Jan-Mar 2024)

GROUP RESULTS ANALYSIS

	Sweden	Denmark	Norway	Finland	Germany	Belgium	UK+IE	Others	Total
Total revenues
Leases	204	44	46	71	230	16	184	50	845
Own Operations	_	12	_	7	157	250	164	65	656
Market value properties	15,500	4,228	3,321	4,630	17,066	5,935	15,700	4,937	71,317
Investments in properties	70	13	31	7	29	59	25	7	241
Acquisitions of properties	0	_	_	_	_	_	0	_	0
Changes in value properties	-40	-2	-6	-7	99	-45	8	-7	0
Book value Operating Properties Total noncurrent assets at book value,	_	_	_	31	2,090	3,179	2,907	1,019	9,226
less deferred tax assets	17,082	4,241	3,324	5,403	15,930	4,915	16,491	4,961	72,346

PROPERTIES

Q1 2023 (Jan-Mar 2023)

•	Sweden D	Denmark	Norway	Finland	Germany	Belgium	UK+IE	Others	Total
Total revenues
Leases	202	45	51	71	187	15	160	50	780
Own Operations	0	12	_	9	124	249	95	85	573
Market value properties	15,496	4,062	3,295	4,609	16,982	5,671	14,598	4,982	69,695
Investments in properties Acquisitions of properties	39 325	20 —	7	5	48 —	66 —	45 683	5 —	235 1,009
Changes in value properties	-324	28	-78	8	39	6	-23	132	-212
Book value Operating Properties Total noncurrent assets at book value,	_	405	_	31	2,064	3,062	2,256	999	8,817
less deferred tax assets	18,255	4,022	3,297	5,349	15,914	4,731	15,654	4,850	72,074

Not 5. Operating segments

Pandox's operating segments consist of the Leases and Own Operations business streams. The Leases segment owns, improves and manages hotel properties and provides external customers with premises for hotel operations, as well as other types of premises adjacent to hotel properties. The Own Operations segment owns hotel properties and operates hotels in such owned properties. The Own Operations segment also includes one hotel property under an asset management agreement. Non-allocated items are any items that are not attributable to a specific segment or are common to both segments, and financial cost for right-of-use assets according to IFRS 16. The segments have been established based on the reporting that takes place internally to executive management on financial outcomes and position. Segment reporting applies the same accounting principles as those used in the annual report in general, and the amounts reported for the segments are the same as those for the Group. Scandic Hotels Group and Fattal Hotels Group are tenants who account for more than 10 percent of revenues each.

PROPERTIES

Alternative performance measurements

About alternative performance measurements

Pandox applies the European Securities and Market Authority's (ESMA) guidelines for Alternative Performance Measurements. The guidelines aim at making alternative Performance Measurements in financial reports more understandable, trustworthy and comparable and thereby enhance their usability. According to these guidelines, an Alternative Performance Measurement is a financial key ratio of past or future earnings development, financial position, financial result or cash flows which are not defined or mentioned in current legislation for financial reporting; IFRS and the Swedish Annual Accounts Act. Adjoining alternative financial measurements provides useful supplementary information to investors and management, as they facilitate evaluation of company performance. Since not all companies calculate financial measurements in the same manner, these are not always comparable to measurements used by other companies. Hence, these financial measures should not be seen as a substitute for measures defined according to the IFRS. Reconciliation of alternative performance measures is available on Pandox's website.

Properties

	Jan-	Jan-Mar
	2024	2023	2023
Number of properties	158	158	159
- of which Leases	138	138	139
- of which Own Operations	20	20	20
Number of rooms	35,613	35,586	35,851
- of which Leases	29,963	29,938	30,201
- of which Own Operations	5,650	5,648	5,650
Total square meters	-	-	2,102,973
Market value properties, MSEK	71,317	69,695	69,039
- of which Investment properties	59,044	57,719	57,226
- of which Operating properties	12,273	11,976	11,813
Total average yield, %	6.25	5.79	6.24
- Investment properties	6.10	5.62	6.09
- Operating properties	6.98	6.59	7.02
Total changes in value, MSEK	2,278	463	-481
- Investment properties	1,818	156	-337
- Operating properties	460	307	-144
WAULT, years	14.9	14.7	15.0

Properties

	Jan-	Jan-Mar
	2024	2023	2023
Loan to value, net, %	46.6	46.2	46.6
Interest cover ratio, times	2.0	2.3	2.7
Interest cover ratio R12m, times	2.6	3.6	2.7
Interest-bearing net debt/EBITDA, times	8.8	9.2	8.7

Per share

GROUP RESULTS ANALYSIS

	Jan-	Full-year
	2024	2023	2023
Earnings per share	2.43	-1.17	-3.18
Equity per share	168.88	168.07	161.68
Cash earnings per share	1.48	1.41	9.48
Dividend per share	-	-	4.00
Average number of shares	183,849,999	183,849,999	183,849,999
Total number of shares outstanding, end of period	183,849,999	183,849,999	183,849,999

EPRA

	Jan-l	Full-year
	2024	2023	2023
EPRA earnings, MSEK	272	259	1,742
EPRA NRV, MSEK	38,342	37,676	36,976
Growth EPRA NRV, %	3.0	14.9	-0.7
EPRA NTA, MSEK	38,342	37,676	36,976
EPRA NDV, MSEK	33,930	33,839	32,544
EPRA NIY, Investment properties, R12, %	5.89	5.52	5.94
EPRA LTV, %	46.9	46.3	47.0
EPRA Capital Expenditure, MSEK	241	1,545	2,498
EPRA earnings per share (EPS)	1.48	1.41	9.48
EPRA NRV per share	208.55	204.93	201.12
EPRA NTA per share	208.55	204.93	201.12
EPRA NDV per share	184.55	184.06	177.01

About EPRA

EPRA's (European Public Real Estate Association) mission is to promote, develop and represent the European public real estate sector. EPRA has more than 290 members, covering the full spectrum of the listed property industry (companies, investors and their stakeholders) and representing over €840 billion in property assets and 95% of the market value of the FTSE EPRA Nareit Europe Index. For more information, see www.epra.com.

Quarterly data

Condensed consolidated statement of comprehensive income

MSEK	Jan-Mar 2024	Oct-Dec 2023	Jul-Sep 2023	Apr-Jun 2023	Jan-Mar 2023	Oct-Dec 2022	Jul-Sep 2022	Apr-Jun 2022
Revenues Leases
Rental income	812	895	1,002	908	743	803	886	761
Other property income	33	33	38	34	37	45	81	97
Revenue Own Operations	656	910	844	832	573	775	706	624
Total revenues	1,501	1,838	1,884	1,774	1,353	1,623	1,673	1,482
Costs Leases	-151	-159	-120	-136	-118	-150	-101	-97
Costs Own Operations	-635	-762	-694	-685	-588	-732	-578	-449
Gross profit	715	917	1,070	953	647	741	994	936
Central administration	-51	-53	-46	-53	-45	-59	-28	-34
Financial net	-386	-376	-420	-361	-310	-289	-248	-236
Financial cost right of use assets	-28	-28	-28	-26	-26	-26	-24	-22
Profit before value changes	250	460	576	513	266	367	694	644
Changes in value
Changes in value properties	34	-339	-90	-466	-212	-66	572	395
Changes in value derivatives	298	-1,236	43	332	-344	-59	815	632
Profit before tax	582	-1,115	529	379	-290	242	2,081	1,671
Current tax	-45	-137	-95	-78	-65	-24	-48	-59
Deferred tax	-83	127	26	-13	152	-117	-346	-240
Profit for the period	454	-1,125	460	288	-203	101	1,687	1,372
Other comprehensive income	830	-845	-583	1,146	170	308	341	455
Total comprehensive income for the period	1,284	-1,970	-123	1,434	-33	409	2,028	1,827
Key ratios
Total net operating income	785	989	1,142	1,025	714	882	1,059	999
- of which Leases	694	769	920	806	662	698	866	761
- of which Own Operations	91	220	222	219	52	184	193	238
EBITDA	740	942	1,102	977	675	829	1,037	970
Total cash earnings	272	415	558	510	259	515	717	645
Revenue growth Leases (LFL), %	2	7	7	12	21	25	39	39
Revenue growth Own Operations (LFL), %	6	8	6	24	113	109	143	314
NOI growth Leases (LFL), %	2	7	7	12	21	22	45	39
NOI growth Own Operations (LFL), %	22	5	28	38	n.a	n.a	n.a	n.a
RevPAR Leases, SEK	656	807	952	907	646	757	926	792
RevPAR Own Operations, SEK	818	1,085	1,145	1,157	754	1,019	1,076	936
RevPAR growth Leases (LFL), %	1	6	2	14	66	43	66	225
RevPAR growth Own Operations (LFL), %	6	7	8	26	112	113	140	370

Condensed consolidated statement of financial position

PROPERTIES

GROUP RESULTS ANALYSIS

	31 Mar	31 Dec	30 Sep	30 Jun	31 Mar	31 Dec	30 Sep	30 Jun
MSEK	2024	2023	2023	2023	2023	2022	2022	2022
ASSETS
Properties incl equipment and interiors	67,651	66,079	68,210	68,927	66,550	65,552	64,712	62,832
Right-of-use assets	2,971	2,848	2,975	3,345	3,250	3,218	3,383	3,222
Other non-current receivables	1,723	1,612	2,600	2,708	2,274	2,462	2,544	1,711
Deferred tax assets	394	340	335	269	268	305	239	262
Current assets	2,350	1,560	1,454	1,333	1,287	2,050	1,964	1,434
Cash and cash equivalents	703	769	749	1,008	2,004	1,630	2,463	1,873
Total assets	75,792	73,208	76,323	77,590	75,633	75,217	75,305	71,334
EQUITY AND LIABILITIES
Equity	31,048	29,725	31,751	31,874	30,900	30,933	30,540	28,512
Deferred tax liability	5,487	5,270	5,470	5,476	5,359	5,538	5,287	4,918
Interest-bearing liabilities	33,761	32,770	33,891	34,526	34,054	33,871	34,478	33,242
Leasing liabilities	2,980	2,856	2,983	3,352	3,256	3,223	3,387	3,226
Non interest-bearing liabilities	2,516	2,587	2,228	2,362	2,064	1,652	1,613	1,436
Total equity and liabilities	75,792	73,208	76,323	77,590	75,633	75,217	75,305	71,334
Key ratios
Market value properties	71,317	69.039	71,178	72,164	69,695	69,232	68,257	65,803
- of which Investment properties	59,044	57,226	58,936	59,992	57,719	57,563	55,582	54,266
- of which Operating properties	12,273	11,813	12,242	12,172	11,976	11,669	12,675	11,537
Average yield, Leases, %	6.10	6.09	5.92	5.88	5.62	5.58	5.45	5.41
Average yield, Own Operations, %	6.98	7.02	6.95	6.80	6.59	6.50	6.43	6.38
Interest-bearing net debt	33,256	32,190	33,333	33,718	32,188	32,224	32,119	31,472
Average interest level end of period, %	4.2	4.2	4.2	4.3	3.9	3.2	2.8	2.5
Interest cover ratio, times	2.0	2.6	2.8	2.9	2.3	3.1	4.8	4.7
Interest cover ratio, R12m, times	2.6	2.7	2.8	3.2	3.6	3.7	3.6	2.9
Loan to value, net, %	46.6	46.6	46.8	46.7	46.2	46.7	47.1	47.8
Interest-bearing net debt/EBITDA, times	8.8	8.7	9.3	9.6	9.2	9.8	10.7	12.5
Average repayment period, years	2.2	2.3	2.4	2.6	2.1	1.7	1.8	2.0
Average fixed interest period, years	3.3	3.9	4.1	4.3	2.7	2.7	2.8	3.0

	31 Mar 2024	31 Dec 2023	30 Sep 2023	30 Jun 2023	31 Mar 2023	31 Dec 2022	30 Sep 2022	30 Jun 2022
Number of properties	158	159	159	158	158	157	157	156
- of which Leases	138	139	139	139	138	137	135	136
- of which Own Operations	20	20	20	19	20	20	22	20
Number of rooms	35,613	35,851	35,851	35,648	35,586	35,490	35,490	35,243
- of which Leases	29,963	30,201	30,201	30,201	29,938	29,717	29,160	29,340
- of which Own Operations	5,650	5,650	5,650	5,447	5,648	5,773	6,330	5,903
Market value properties, MSEK	71,317	69,039	71,178	72,164	69,695	69,232	68,257	65,803
- of which Investment properties	59,044	57,226	58,936	59,992	57,719	57,563	55,582	54,266
- of which Operating properties	12,273	11,813	12,242	12,172	11,976	11,669	12,675	11,537

	Jan-Mar	Oct-Dec	Jul-Sep	Apr-Jun	Jan-Mar	Oct-Dec	Jul-Sep	Apr-Jun
SEK	2024	2023	2023	2023	2023	2022	2022	2022
Closing price of B shares, end of period	179.7	150.4	116.3	125.6	129.4	116.4	118.4	114.7
EPRA NRV	208.55	201.12	207.53	209.86	204.93	205.03	202.96	190.37
EPRA NTA	208.55	201.12	207.53	209.86	204.93	205.03	202.96	190.37
EPRA NDV	184.55	177.01	187.67	189.78	184.06	184.67	184.22	170.11
EPRA earnings (EPS)	1.48	2.26	3.04	2.77	1.41	2.80	3.90	3.51
Equity	169	162	173	173	168	168	166	155
Profit for the period	2.47	-6.12	2.50	1.57	-1.10	0.55	9.18	7.46
Net operating income	4.27	5.38	6.21	5.58	3.88	4.80	5.76	5.43
Cash earnings	1.48	2.26	3.04	2.77	1.41	2.80	3.90	3.51
Average number of shares, thousands	183,850	183,850	183,850	183,850	183,850	183,850	183,850	183,850
Average number of shares after dilution, thousands	183,850	183,850	183,850	183,850	183,850	183,850	183,850	183,850
thousands Number of shares outstanding after dilution, end of	183,850	183,850	183,850	183,850	183,850	183,850	183,850	183,850
period, thousands	183,850	183,850	183,850	183,850	183,850	183,850	183,850	183,850

Current tax is calculated on the taxable profit for the period based on the tax rules applicable in the countries where the group operates. Since taxable profit excludes expenses that are not tax-deductible and income that is not taxable, this differs from the profit before tax in the income statement. Current tax also includes adjustments to current tax recognised in previous periods.

At the end of the period, deferred tax assets amounted to MSEK 394 (340). This consists mainly of the carrying amount of tax loss carryforwards which the Company expects to be able to utilise in future financial years.

Deferred tax liabilities amounted to MSEK 5,487 (5,270) and relate mainly to temporary differences between fair value and the taxable value of investment properties, as well as temporary differences between the carrying amount and the taxable value of operating properties, and temporary measurement differences for interest rate derivatives.

Group	31 Mar	31 Mar	31 Dec
Amounts in MSEK	2024	2023	2023
Assets
Assets in Hotel Pomander (Own Operations)	-	-	71
Operating property Double Tree by Hilton Montreal	629	-	-
Assets classified as held for sale	629	-	71

Pandox's general approach to business risk has not changed from the detailed account provided in the 2023 Annual Report. There is a risk that market interest rates, financing costs and higher yield requirements does not decrease in the pace that the market is expecting. There is uncertainty about how geopolitical unrest will affect the economic cycle and thus hotel demand from companies and households.

Average weighted interest rate, including interest rate derivatives, for interest-bearing liabilities at the end of period.

EBITDA plus financial income less financial expense less financial cost for right-of-use assets according to IFRS 16 less current tax reported in the income statement, adjusted for any unrealised translation effect on bank balances and noncontrolling interest.

Total gross profit less central administration (excluding depreciation).

EBITDA in relation to total revenues.

Earnings Leases and Own operations before tax. Reversal of change in value of properties, change in value of derivatives and non-controlling interests. Company-specific reversal of depreciation of own operations, depreciation of central administration costs, unrealised translation effect of bank balances, less current tax.

Recognised equity, attributable to the Parent Company's shareholders, including reversal of derivatives, deferred tax asset derivatives, deferred tax liabilities related to properties, and revaluation of Operating Properties.

Recognised equity, attributable to the Parent Company's shareholders, including reversal of derivatives and deductions for intangible assets, deferred tax asset derivatives, deferred tax liabilities related to properties, and revaluation of Operating Properties.

Recognised equity, attributable to the Parent Company's shareholders, including revaluation Operating Properties.

Loan-to-value ratio net adjusted for net operating assets and operating liabilities.

Net operating income Leases, before property administration, rolling 12 months, divided by market value Investment properties.

Growth measure that excludes effects of acquisitions, divestments and reclassifications, as well as exchange rate changes.

Accumulated percentage change in EPRA NRV, with dividends added back and issue proceeds deducted, for the immediately preceding 12-month period.

Revenue less directly related costs for Own Operations including depreciation of Own Operations.

Revenue less directly related costs for Leases.

Current and non-current interest-bearing liabilities plus arrangement fee for loans less cash and cash equivalents and short-term investments that are equivalent to cash and cash equivalents. Longterm and short-term lease liabilities according to IFRS 16 are not included.

Interest-bearing net debt at the end of the period in relation to accumulated EBITDA R12.

EBITDA less financial expense for right-of-use assets divided by net interest expense, which consists of interest expense less interest income.

Investments in non-current assets excluding acquisitions.

Interest-bearing liabilities, including arrangement fee for loans, less cash and cash equivalents as a percentage of the properties' market value at the end of the period.

Gross profit for Own Operations plus depreciation included in costs for Own Operations.

Net operating income corresponds to gross profit for Leases.

Net operating income for Own Operations as a percentage of total revenue from Own Operations.

Net operating income for Leases as a percentage of total revenue from Leases.

Profit before tax plus change in value of properties plus change in value of derivatives.

Since amounts have been rounded off in MSEK, the tables do not always add up.

Cash earnings divided by the weighted average number of shares outstanding after dilution during the period.

Comprehensive income attributable to the Parent Company's shareholders divided by the weighted average number of shares outstanding after dilution during the period.

Proposed/approved dividend for the year divided by the weighted average number of outstanding shares after dilution at the end of the period.

Profit for the period attributable to the Parent Company's shareholders divided by the weighted average number of shares outstanding.

EPRA Earnings divided by the weighted average number of shares outstanding during the period.

EPRA NRV, NTA, and NDV divided by the total number of shares outstanding after dilution at the end of the period.

The weighted average number of outstanding shares taking into account changes in the number of shares outstanding after dilution during the period.

The weighted average number of outstanding shares taking into account changes in the number of shares outstanding, before dilution, during the period.

Market value of Investment Properties plus market value of Operating Properties.

Number of owned hotel properties and rooms at the end of the period.

Revenue per available room, i.e. total revenue from sold rooms divided by the number of available rooms. Comparable units are defined as hotel properties that have been owned and operated during the entire current period and the comparative period. Constant exchange rate is defined as the exchange rate for the current period, and the comparative period is recalculated based on that rate.

Weighted average unexpired lease term for Investment Properties.

Property management is at the heart of our business. Our business model -based, long leases with guaranteed minimum levels and joint incentives. We also operate hotels ourselves as an important part of our active ownership strategy

Our portfolio offers good opportunities for making value -adding investments together with our tenants. We also make transformative investments in the hotels we operate with the objective of signing new leases.

The portfolio is evaluated on an ongoing basis to ensure that each hotel property has attractive return potential. Acquisitions form the foundation for growth, and divestment is important to free up capital for investments with higher return potential

We want to contribute to sustainable development by creating resource efficient properties, operating our own hotels sustainably and providing safe and secure environments for our employees and guests

Pandox's loan -to -value ratio shall be in the interval 45 –60 percent, depending on the market environment and the opportunities that exist. The Company defines loan -to value ratio as interest bearing liabilities less cash and cash equivalents as a percentage of the market value of the properties at the end of the period.

Pandox's target is a dividend pay -out ratio of 30 –50 percent of cash earnings, with an average pay -out ratio over time of around 40 percent. Future dividends and the size of any such dividends depend on Pandox's future performance, financial position, cash flows and working capital requirements.

The hotel industry is seasonal in nature. The periods during which the Company's properties experience higher revenues vary from property to property, depending principally upon the composition of demand and the hotel property's location. The second quarter is normally the strongest supported by high demand and willingness to pay from all sub -segments in the hotel market. Since most of the customers that stay at Pandox owned or operated hotels are business travellers, hotel demand is normally the weakest in the first quarter

Pandox's B shares have been listed on Nasdaq Stockholm's list for large companies since 2015. The B shares are also traded on several alternative marketplaces.

As of 31 March 2024, the last price paid for the B shares was SEK 179.70 and the visible market capitalisation was MSEK 19,528. Including the unlisted A shares at the same price as the B shares, the market capitalisation was MSEK 32,983. During the period, the Pandox share traded at a high of SEK 180.00 and a low of SEK 136.90. During the period January-March 2024, the value of the Pandox share increased by 20 percent, compared to the OMX Stockholm Benchmark PI index of 6 percent and the OMX Stockholm Real Estate PI index of 5 percent.

As of 31 March 2024, Pandox has 7,600 registered shareholders and the number of shares in Pandox amounts to 183,849,999.

Pandox's policy is a dividend payout ratio of 30-50 percent of cash earnings per share with an average dividend payout ratio over time of approximately 40 percent. For 2023, the annual general meeting in 2024 approved a dividend of SEK 4.00 (2.50) per share, totalling approximately MSEK 735 (460), corresponding to a dividend payout ratio of approximately 42 (22) percent. The dividend yield, measured on the share price as of 31 March 2024, was approximately 2.2 percent.

At the end of the period, the total number of shares before and after dilution amounted to 75,000,000 A shares and 108,849,999 B shares. For the first quarter of 2024, the weighted number of shares before and after dilution amounted to 75,000,000 A shares and 108,849,999 B shares.

			Snare of snare
Owners	Number of A shares	Number of B shares	capital, %	Share of votes, %
Eiendomsspar	37,314,375	10,144,375	25.8	36.6
Helene Sundt AB	18,657,188	3,912,187	12.3	17.9
Christian Sundt AB	18,657,187	3,312,188	12.0	17.8
AMF Pension & Fonder		27,551,259	15.0	8.3
Alecta Tjänstepension		7,287,577	4.0	2.2
Länsförsäkringar Fonder		7,287,577	2.9	1.6
Vanguard		5,319,233	2.0	1.1
BlackRock		3,705,902	1.6	0.9
Fjärde AP-fonden		3,021,193	1.6	0.9
Carnegie Fonder		2,883,424	1.2	0.7
Sum 10 largest shareholders	74,628,750	74,424,915	78.3	87.9
Other shareholders	371,250	34,425,084	21.7	11.7
Total	75,000,000	108,849,999	100	100

<-- PDF CHUNK SEPARATOR -->

Stockholm, 25 April 2024

Liia Nõu, CEO

This report has not been examined by the Company's auditor.

This information is information that Pandox AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted, through the agency of the contact persons set out above, for publication on 25 April 2024 at 07:00 CEST.

A webcast and telephone conference will be held on 25 April 2024 at 08:30 CEST. More information is available on pandox.se.

Liia Nõu, CEO +46 (8) 506 205 50

Anneli Lindblom, CFO +46 (0) 765 93 84 00

Anders Berg, Head of Communications and IR +46 (0) 760 95 19 40

12 July 2024 Interim report, Q2 2024 24 October 2024 Interim report, Q3 2024 6 February 2025 Year-end report 2024

This interim report is a translation from the Swedish original report. In the event of discrepancies between the language versions the Swedish wording will prevail.