Stendörren Fastigheter

Interim / Quarterly Report • Jul 19, 2024

INTERIM FINANCIAL REPORT JANUARY – JUNE 2024

Stenvreten 8:37 in Enköping, ongoing new construction for Advania of 9,500 sqm. Move-in planned for 1 January 2025.

INTERIM FINANCIAL REPORT JANUARY–JUNE 2024

THE PERIOD IN BRIEF

Key ratios	7
Stendörren in brief	6
CEO's statement	4
January–June 2024	3

TARGETS AND OUTCOME

Targets and outcome 8

THE BUSINESS

Property portfolio summary	9
Projects portfolio	12
Future projects	13
Ongoing projects	14
Completed projects	15
Property valuation	16
Financing	18

SUSTAINABILITY

Sustainability with five focus areas	20
UN SDGS	21

FINANCIAL INFORMATION

Consolidated statement of comprehensive income	22
Comments to the consolidated income statement	23
Consolidated statement of financial position	24
Comments to the consolidated statement
of financial position	25
Consolidated changes in equity	26
Consolidated statement of cash flows	27
Parent Company summary	28
Share capital and ownership	30

OTHER INFORMATION

Other information	32
The Board and CEO's assurance	33
Appendix 1, Assessed earnings capacity	34
Definitions	35

Stendörren Fastigheter AB (publ) is an expansive property company listed on Nasdaq Stockholm Mid Cap. Our business concept is to create profitable growth in net asset value by managing, developing and acquiring properties and building rights within logistics, warehouse and light industry in Nordic growth regions. When commercially viable, we rezone such existing properties and thereby create residential building rights for further development and management, mainly in Greater Stockholm and the rest of the Mälardalen region.

444

SEK MILLION RENTAL INCOME 351 SEK MILLION

INCOME

NET OPERATING

SEK MILLION INCOME FROM PROPERTY MANAGEMENT

165

This report may contain discrepancies in totals in some tables due to rounding.

English translation for information purposes only. If there are differences between the English translation and the Swedish original, the Swedish text will take precedence.

JANUARY – JUNE 2024

THE PERIOD IN BRIEF

JANUARY–JUNE 2024*

• Rental income increased by 5% to SEK 444 million (421) and net operating income increased by 5% to SEK 351 million (334), which corresponds to an underlying increase of 7% for the comparable portfolio.
• Income from property management amounted to SEK 165 million (164).
• Net letting during the period amounted to a total of approximately SEK -2.9 million and new lease agreements with an annual rental value of approximately SEK 46 million were signed (includes both renegotiated leases and leases with new tenants).
• Lease agreements that were renegotiated during the period led to an increase in rental values of 6% on a weighted average basis.
• Cash flow from operating activities amounted to SEK 49 million (125), corresponding to SEK 1.71 per share (4.41).
• Realized and unrealized changes in value of the property portfolio for the period amounted to SEK 47 million (-157).
• Profit for the period amounted to SEK 155 million (-1), corresponding to SEK 4.62 per share (-1.11) before dilution and 4.62 per share (-1.11) after dilution.

KEY RATIOS	JAN – JUN 2024	JAN – JUN 2023	JAN – DEC 2023
Rental income, SEK m	444	421	843
Net operating income, SEK m	351	334	672
Income from property management, SEK m	165	164	287
Fair value properties, SEK m	12,642	12,513	12,566
Lettable area, sqm	808,000	804,000	824,000
LTV, %	50	49	50
Equity ratio, %	39	39	37

SIGNIFICANT EVENTS DURING THE SECOND QUARTER AND AFTER THE END OF THE QUARTER

• In May, green subordinated hybrid bonds of SEK 300 million were successfully issued under a framework of SEK 400 million. At the same time, the company submitted a repurchase offer for all previously outstanding hybrid bonds. The buyback offer was accepted for an amount of SEK 133 million.
• At the end of the quarter, and immediately after the end of the quarter, two industrial and warehouse properties were acquired in two separate transactions, in Botkyrka and in Södertälje, for an agreed property value of SEK 62 million. The total lettable area amounts to 3,235 square meters and both properties are fully let.

* (January–June 2023 in parenthesis)

VD HAR ORDET

STATEMENT FROM THE CEO

With a strong first half of the year behind us, with positive net operating income development, both completed and newly started projects and completed acquisitions, we have increased the growth in Stendörren.

POSITIVE UNDERLYING OPERATIONAL DEVELOPMENT

Compared to the first half of last year, we report SEK 20 million higher revenues and net operating income rose by SEK 17 million, which corresponds to an underlying increase of 7% for the comparable portfolio. The vacancy rate remained at 7% for the reporting period, despite a weak economy. In addition, three new projects in the light industry segment were started during the period. The underlying operational development has thus been positive.

FOCUS ON GROWTH

In recent quarters, with interest rates that appear to have peaked and with a possible improvement in the economy in sight, the sentiment for attractive investments has improved. Further, with the lease to the Swedish Fortifications Agency at the end of 2023, a continuously adapted capital structure with a reduced proportion of expensive capital market financing, a high proportion of interest rate hedging that ensures a reasonable cost of capital and good liquidity, we have increased our focus on growth. This is done by taking advantage of the project ideas that we have created in recent years and by taking advantage of the opportunities for attractive acquisitions that the market offers.

SEVERAL NEW PROJECTS STARTED DURING THE REPORTING PERIOD

Our project development activities continue to make good progress and during the year we have gradually increased the activity. We continuously add new project ideas, start construction, complete and let. During the reporting period, construction work has started on three new light industry projects. One relates to new production of approximately 1,200 sqm for an already contracted tenant on the Viby 19:30 property in Upplands-Bro. In GreenHub in Upplands-Bro, construction of the first building on the Nygård 2:17 property has started. A new building of approximately 2,300 sqm will be built, which marks the start of the development of the area, where there is a significant volume of additional attractive building rights. In Stockholm Syd – Almnäs with proximity to both the port of Södertälje and the Erik Ranje, CEO

STATEMENT FROM THE CEO

E4 and the E20 highways, Stendörren has leased all three buildings totalling 16,500 sqm that were started on speculation, which now enables the start of another building of 2,300 sqm. Both the building in GreenHub and in Södertälje are being built with high sustainability ambitions, including a wooden frame. Stendörren also has several project ideas for which building permit has been obtained and preparatory works has started, especially in logistics, where we are waiting to start construction until a satisfactory occupancy rate has been achieved for each project. Having projects ideas with building permits obtained give us the opportunity to quickly start new construction, but with the opportunity to adjust these according to customer needs. All ongoing projects are located in well-established and expansive areas where there is a clear demand and where leasing work is already underway.

During the last four quarters, five projects covering a total area of 13,000 sqm have been completed, of which the majority of the area is leased. Ongoing and recently completed projects that have not yet had time to generate revenues during the reporting period are expected, following letting and completion, to be able to add SEK 70 million in net operating income. Of this amount, approximately SEK 18 million relates to recently completed or projects with completion within one year and for which lease agreements already exist, approximately SEK 30 million pertains to projects within light industry that are being built or intended to be built on speculation, and approximately SEK 22 million pertains to projects in within logistics that require leasing before construction starts. In addition, we have an extensive portfolio of upcoming projects, which are in earlier stages.

TWO NEW ACQUISITIONS AND AN ATTRACTIVE PIPELINE OF POTENTIAL ACQUISITIONS UNDER EVALUATION

At the end of the quarter, and immediately after the end of the quarter, we acquired two industrial and warehouse properties in two separate transactions, in Botkyrka and in Södertälje, for an agreed property value of SEK 62 million. The total leasable area amounts to 3,235 square meters and both properties are fully let. Over the past two years, we have had a wait-and-see approach to acquisitions, as a result of continuously falling property values. Now, however, we see acquisitions as an important complement to organic growth. We believe that the market offers attractive acquisition opportunities and we are currently evaluating a number of exciting acquisitions.

GOOD CONDITIONS TO TAKE ADVANTAGE OF STENDÖRREN'S FULL POTENTIAL

Stendörren is a company with significant growth potential consisting of increasing rents for the company's industrial properties in metropolitan locations, the project potential in the building rights portfolio and complementary value-creating acquisitions. But the fact is that the growth potential since I started as CEO of Stendörren just over four years ago has never been simultaneously and fully exploited. From an external perspective, the company, just like the rest of the industry, has been hampered by successive crises, where the covid pandemic that broke out a few months after I started at Stendörren was soon followed by sharply rising construction product prices, energy prices, interest rates and a weaker economy. From an internal perspective, the work with the development of project ideas during my first years at Stendörren has gained result, with completed and leased projects only in the last two years, as the lead times in project development are long, i.e. only during the period when we had reason to wait with acquisitions.

As we now begin the second half of 2024, I am convinced that we will be able to make full use of Stendörren's growth potential. With a normalized interest rate, adapted capital structure, a possible improvement in the economy, an attractive project pipeline and attractive acquisition opportunities, I therefore look forward to an exciting autumn.

Stockholm, July 19, 2024

Erik Ranje, CEO

STENDÖRREN IN BRIEF

MISSION & OBJECTIVES

Stendörren Fastigheter AB (publ) is an expansive property company listed on Nasdaq Stockholm Mid Cap. Our business concept is to create profitable growth in net asset value by managing, developing and acquiring properties and building rights within logistics, warehouse and light industry in Nordic growth regions. When commercially viable, we rezone such existing properties and thereby create residential building rights for further development and management, mainly in Greater Stockholm and the rest of the Mälardalen region.

FINANCIAL OBJECTIVES

Stendörren has four financial objectives:

• the long-term average return on equity shall amount to at least 12%
• the long-term growth in long-term net asset value shall amount to at least 15%
• the long-term interest coverage ratio shall amount to at least 2.0 times
• the long-term equity ratio shall be 35% (and never less than 20%)

PROPERTY PORTFOLIO

As at June 30, 2024, the property portfolio of Stendörren consisted of 151 properties, primarily located in the Greater Stockholm and Mälardalen region with a market value of SEK 12,642 million. The ten largest lease agreements accounted for about 21% of the total annual rent. The company's largest lease agreement with Coop represents approximately 9 percent of the total annual rent. Coop will vacate the premises in September 2024, after which the Fortifications Agency will immediately become tenant.

The total property portfolio comprised of approximately 808,000 sqm of lettable premises, of which warehouse, logistics and light industrial properties accounted for approximately 69% of the total lettable area.

At the end of the period, Stendörren had a total of 39 properties, wholly or partly consisting of building rights. Unutilized building rights amounted to approximately 641,000 sqm and were primarily for logistics, light industrial and residential use. The market value of the building rights portfolio amounted to SEK 1,377 million (1,528) on the reporting date.

When commercially viable, the company rezones existing properties and thereby create residential building rights for further development and management, mainly in Greater Stockholm and the rest of the Mälardalen region. The development and rezoning processes, which are at different stages, may result in building rights for up to 700 new units on completion. The status of each rezoning process was considered when determining the market value of the building rights. The company's residential building rights represent approximately one third of the valuation of the entire building rights portfolio.

FINANCING

As at June 30, 2024, the Group's equity amounted to SEK 5,130 million (5,115) and the Group's interest-bearing liabilities amounted to SEK 6,735 million (6,546), corresponding to a loan-to-value ratio of 50% (49).

The average time to maturity of interest-bearing liabilities amounted to 2.7 years (2.7) and including the unhedged portion of the relevant IBOR and hedged portion via interest-rate derivatives, the average interest maturity was 2.9 years (2,1). The average interest rate on the company's total interest-bearing loans, including derivatives amounted to 3.9% on the closing date.

On the reporting date, the company had one bond of SEK 600 million with an interest rate of Stibor 90 plus 3.90% with final maturity in August 2025, one green bond of SEK 500 million with an interest rate of Stibor 90 plus 5.25% with final maturity in December 2026, one hybrid bond of SEK 380 million with an interest rate of Stibor 90 plus 6.50% with a first redemption date in September 2024 and a green hybrid bond of SEK 300 million with an interest rate of Stibor 90 plus 5.50% with a first redemption date in May 2027.

DIVIDEND

Stendörren's assessment is that the best long-term total return is generated by reinvesting the profits in the business to create further profitable growth. The company will thus continue to grow by investing in existing assets, new acquisitions and the development of new assets. Accordingly, the dividend paid will be low or zero over the next few years.

THE PERIOD IN BRIEF TARGETS AND OUTCOME THE BUSINESS SUSTAINABILITY FINANCIAL INFORMATION OTHER INFORMATION

KEY RATIOS

2024 JAN-JUN	2023 JAN-JUN	2023 JAN-DEC
808	804	824
151	151	151
12,642	12,513	12,566
90	93	91
93	95	94
5.5	4.9	5.4
6.5	6.0	6.5
4.3	0.9	2.5
4.1	3.8	4.3
1,238	1,182	1,173
452	432	854
351	334	672
165	164	287
79	76	79
13,506	13,276	13,193
3.9	4.2	4.1
2.9	2.1	3.3
2.7	2.7	2.6
2.0	2.3	2.0

	2024 JAN-JUN	2023 JAN-JUN	2023 JAN-DEC
Loan-to-value ratio at end of period, % Loan-to-value ratio, property level	50	49	50
at end of period,%	45	42	44
Equity ratio at end of period, %	39	39	37
Return on equity, 12 month average %	-2	-3	-5
STOCK RELATED KEY RATIOS
Market capitalization, SEK million	5,254	4,622	5,214
Stock price at end of period, SEK	184.80	162.60	183.40
Book equity per share, SEK1	157.25	162.40	152.68
Long-term net asset value, SEK million	5,360	5,359	5,192
Long-term net asset value per share, SEK	188.54	188.50	182.62
Current net asset value, SEK million	4,905	4,902	4,740
Current net asset value per share, SEK	172.55	172.45	166.72
Earnings per average number of shares before dilution, SEK	4.62	-1.11	-10.54
Earnings per average number of shares after dilution, SEK	4.62	-1.11	-10.54
Cash flow from operating activities per share, SEK	1.71	4.41	10.79
No. of shares, at end of period	28,428,265	28,428,265	28,428,265
Average no. of shares	28,428,265		28,428,265 28,428,265
OTHER RATIOS
No. of coworkers at end of period	54	55	54
No. of coworkers, average in period	54	54	54

1) Book equity excluding hybrid capital per share.

For definitions, please see page 35. Explanations of the key ratios used can also be found at www.stendorren.se.

TARGETS AND OUTCOME

	ROE (AVERAGE)	NAV GROWTH	ICR	EQUITY RATIO
FINANCIAL TARGETS	The long-term average return on equity shall amount to at least 12%.	The long-term growth in long-term net asset value shall amount to at least 15%.	The long-term ICR shall exceed 2.0 times.	The long-term equity ratio shall be 35% (and never be below 20%).
	-2%	0%	2.0 times	39%1)
OUTCOME	The return on equity (calculated as 12 month average) amounted to -2% at the end of the period.	At the end of the period, growth in net asset value (over the last 12 months) amounted to 0%.	The interest coverage ratio amounted to 2.0 times.	The equity ratio amounted to 39% at the end of the period. 1) The stated equity ratio is calculated excluding the lease liability resulting from the application of IFRS 16. If this liability item were to be included in the calculation, the equity ratio would be negatively impacted by approximately 0.7 percentage points.
HISTORICAL PERFORMANCE	% 30 25 20 15 10 5 0 -5 -10 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2021 2022 2023 2024	% 40 30 20 10 0 -10 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2021 2022 2023 2024	Times ggr 4 3 2 1 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2020 2022 2023 2024	% 50 40 30 20 10 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2021 2022 2023 2024

THE PERIOD IN BRIEF TARGETS AND OUTCOME THE BUSINESS SUSTAINABILITY FINANCIAL INFORMATION OTHER INFORMATION

PROPERTY PORTFOLIO SUMMARY

PROPERTY PORTFOLIO

PROPERTY PORTFOLIO JUNE 30

As of June 30, 2024, the property portfolio of Stendörren consisted of 151 properties, primarily located in the Greater Stockholm and Mälardalen region, with a total market value of SEK 12,642 million. The property portfolio is reported quarterly at fair value. All properties are externally valued regularly, at least once a year. When not externally valued, each property is internally valued each quarter based on an updated analysis of actual cash flow, market rental levels, expected costs and an assessment of the market yield requirement.

At the end of the reporting period, the total property portfolio comprised of approximately 808,000 sqm of lettable area. Warehouse, logistics and light industrial premises together accounted for about 69% of the total lettable area. The office space held in the company's portfolio (about 20% of lettable area) is mainly office space leased in combination with warehouse, logistics or light industrial properties. A distribution based on rental income would give a higher proportion of offices due to the average rent for this area type being higher than for the rest of the portfolio. The risk of large-scale vacancies and rental losses due to bankruptcies is mitigated by tenant diversification, whereby 81% of the portfolio is let to at least two tenants.

During the period, the value of the property portfolio increased by a total of SEK 76 million. The change in value consists of the acqusition of a property of SEK 19 million, divestment of a property of SEK -224 million, investments in existing properties of SEK 219 million, currency effects of SEK 15 million and realized and unrealized changes in value totaling SEK 47 million (see table on page 17).

GEOGRAPHIC DISTRIBUTION OF PROPERTY PORTFOLIO

Stendörren puts significant effort into identifying attractive geographical industrial areas with potential in Nordic growth regions. Special focus is on developing and strengthening the company's presence in such areas where Stendörren is already established. Approximately 61% of Stendörren's total rental income comes from properties located in the Stockholm region. Stendörren has a large concentrated property portfolio in the Högdalen industrial area, which creates synergies both in terms of management and leasing. In Veddesta, the company has large properties, also resulting in efficient property management. Locations including Upplands-Väsby and Sollentuna along the E4 highway towards Arlanda airport, Brunna in Upplands-Bro northwest of Stockholm and Stockholm-Syd in Södertälje are areas which Stendörren intends to develop further in the years ahead. In addition to the Greater Stockholm area, the company has invested in a number of other locations in the Mälardalen region situated in attractive locations projected to benefit from major transport routes and Stockholm's future growth. Since 2021, the company has also acquired properties in other selected Swedish and Nordic cities with growth potential, such as the Gothenburg region, Oslo, Copenhagen and Helsinki – with a continued focus on warehouse, logistics and light industrial assets.

LARGEST TENANTS BY RENTAL INCOME

PROPERTY PORTFOLIO SUMMARY

TENANTS AND LEASE AGREEMENTS

The tenants in the property portfolio operate in a variety of industries and range from well-established small to medium-sized companies and to large multinational businesses. As of June 30, 2024, the ten largest leases represented approximately 21% of the total annual rental income in the portfolio. The company's largest lease agreement with Coop represents approximately 9% of the total annual rent. Coop will leave these premises in September 2024, after which the Swedish Fortifications Agency will become the new tenant. Stendörren strives to sign long-term leases with its tenants and the average lease duration as of the reporting date was 4.1 years. The company also strives for a diversified maturity structure. Combined with a range of different tenants and industries, this helps to reduce the risk of extensive vacancies and rental losses. Rental losses amounting to SEK 2.7 million were recognized throughout the reporting period.

Stendörren works proactively and continuously to renegotiate leases in line with current market rents. The economic occupancy rate for Stendörren's property portfolio was 93% at June 30, 2024, and the area weighted occupancy rate was 90%. The occupancy rate is a static measure of the rental situation on the reporting date and may vary depending on temporary relocation vacancies or projects that have commenced or been completed at different times.

In general the demand for Stendörren's assets remains strong with stable gross letting in Q2. A few larger terminations within the quarter lead to that the net letting amounted to approximately SEK -4,3 million. During the quarter, new lease agreements with an annual rental value of approximately SEK 29 million were signed. These consist of both renegotiated lease agreements and lease agreements with new tenants.

Hedin Mölndal Bil AB, 1%

LETTABLE AREA, % OF TOTAL AREA

INTERIM FINANCIAL REPORT JANUARY–JUNE 2024

THE PERIOD IN BRIEF	TARGETS AND OUTCOME	THE BUSINESS	SUSTAINABILITY	FINANCIAL INFORMATION	OTHER INFORMATION

PROPERTY PORTFOLIO SUMMARY

NET LETTING

ANNUAL LEASE EXPIRY*

ⁿ Annual rent, SEK million — No. of leases

* Does not take into account current agreements where the tenant has not yet moved into the premises, with the exception of the Swedish Fortifications Agency, which will move in on October 1, 2024.

CONTRACTUAL CHANGES PROPERTY PORTFOLIO*

n New lettings

• n Lease negotiations
• n Bankruptcies
• n Tenants vacating

* Including letting of new construction

THE PERIOD IN BRIEF TARGETS AND OUTCOME THE BUSINESS SUSTAINABILITY FINANCIAL INFORMATION OTHER INFORMATION

PROJECT

PROJECT PORTFOLIO

As of June 30, 2024, Stendörren had a total of 39 properties, wholly or partly consisting of building rights. Unutilized building rights amounted to approximately 641,000 sqm and were primarily for logistics, light industrial and residential use. Additional building rights are created and added to Stendörren's existing types of building rights by active development work and acquisitions. When commercially viable, existing properties are rezoned thereby creating residential building rights for further development and management. This takes place in areas with potential for residential use, mainly in Greater Stockholm and the rest of the Mälardalen region.

The potential in the building rights portfolio is considered strong since the building rights are located in expansive municipalities and areas in Greater Stockholm and the Mälardalen region as well as other growth locations. The pace of new construction starts is affected by both high construction prices and potentially also lower demand resulting from a weaker economic climate. Ongoing and recently completed projects that have not yet generated revenue during the reporting period are expected, upon leasing and completion, to add approximately SEK 70 million in net operating income. Of this amount, approximately SEK 18 million relates to recently completed or projects with completion within one year and for which lease agreements already exist, approximately SEK 30 million pertains to projects within light industry that are being built or intended to be built on speculation, and approximately SEK 22 million pertains to projects in within logistics that require leasing before construction starts. In addition, the company has an extensive portfolio of upcoming projects, which are at an earlier stage.

THE PERIOD IN BRIEF TARGETS AND OUTCOME THE BUSINESS SUSTAINABILITY FINANCIAL INFORMATION OTHER INFORMATION

PROJECT

FUTURE PROJECTS

Stendörren's development of building rights and project properties is primarily customer-driven. The focus is on finding existing and new tenants in need of changed or entirely new premises and satisfying that need by redeveloping existing assets or by developing entirely new assets. In order to minimize risk exposure, Stendörren strives to sign long leases with customers before the construction process is initiated. Stendörren works long term to identify new areas and properties to rezone for residential use. Residential building rights can either be created on undeveloped land, adjacent to an existing building or by converting existing buildings. Work is ongoing regarding rezoning for residential purposes in Sollentuna, Traversen 14 & 15. Further, the company is investigating the conditions for pursuing a rezoning for residential purposes in, for example, the part of Green-Hub in Upplands-Bro with a view over the lake Mälaren and in Skrubba in southern Stockholm with a view over the lake Drevviken.

FUTURE PROJECTS 2024-06-30

MUNCIPALITY	ENVISAGED MAIN USE	ESTIMATED BUILDING RIGHT (SQM)1	STATUS ZONING	ESTIMATED EARLIEST POSSIBLE CONSTRUCTION START2
Upplands-Bro	Logistics	377,000	Within current zoning	2024-2025
Flen	Logistics	55,000	Within current zoning	2024-2025
Södertälje	Logistics	42,200	Within current zoning	2024-2025
Frederikssund	Light industrial	5,800	Within current zoning	2024-2025
Nynäshamn	Light industrial	5,000	Within current zoning	2024-2025
Eskilstuna	Logistics	5,000	Within current zoning	2024-2025
Enköping	Light industrial	2,000	Within current zoning	2024-2025
Västerås	Light industrial	2,000	Within current zoning	2024-2025
Göteborg	Light industrial	2,000	Within current zoning	2024-2025
Järfälla	Light industrial	2,000	Within current zoning	2024-2025
Botkyrka	Light industrial	2,000	Within current zoning	2024-2025
Upplands-Bro	Light industrial	1,500	Within current zoning	2024-2025
Uppsala	Light industrial	1,300	Within current zoning	2024-2025
Botkyrka	Residential	80,000	Within current zoning	2025-2026
Sollentuna	Residential		7,000 Zoning change ongoing	2025-2026
Botkyrka	Light industrial	3,700	Within current zoning	2025-2026

1) GFA, may deviate from what is technically and commercially viable.

2) Start of first phase, projects may include several phases. Note that Stendörren aims to construct on a pre-let basis, why the timing of construction start depends on pace of leasing activities.

ONGOING PROJECTS

PROJECT

The company has several ongoing projects with a project volume in excess of SEK 25 million out of which 51,200 sqm represents new construction and extensions and 2,400 sqm represents refurbishments. During the reporting period, construction work began on three new light industrial projects. One involves new production of approximately 1,200 sqm for an already contracted tenant on the property Viby 19:30 in Upplands-Bro. In GreenHub in Upplands-Bro, construction of the first building on the property Nygård 2:17 has started. Here, a new building of about 2,300 sqm is being constructed, marking the starting point for the development of the property, where there are also additional extensive volume of building rights. In Almnäs, Stockholm South, with proximity to both Södertälje Hamn, E4 and E20, Stendörren has leased all three buildings of a total of approximately 16,500 sqm that were started on speculation, which enables the construction start of another building of 2,300 sqm. The buildings in GreenHub and in Stockholm South are both being constructed with a wooden frame. Stendörren has several project ideas with obtianed building permits that are within the phase of planning and preparation. This gives the company the opportunity to quickly start construction of buildings adapted to customer needs. All ongoing projects are located in well-established and expansive areas where there is a clear demand and where leasing activities are in progress.

ONGOING PROJECTS 2024-06-30

MUNICIPALITY	PROPERTY	DESCRIPTION	EARLIEST POSSIBLE COMPLETION1	SIZE SQM2	INDICATIVE INVESTMENT SEK M3	CURRENT PHASE
Stockholm	Filmremsan 2	Reconstruction	Q3 2024	2,400	37	Construction started
Enköping	Stenvreten 8:37	New logistics	Q4 2024	9,500	158	Construction started
Egedal	Svavelhöjvej 17, Köpenhamn	Extension light industrial	Q4 2024	3,300	50	Construction started
Södertälje	Almnäs 5:23	New light industrial	Q1 2025	2,300	52	Construction started
Upplands-Bro	Viby 19:30	New light industrial	Q1 2025	1,200	36	Construction started
Upplands-Bro	Nygård 2:17 (GreenHub)	New light industrial	Q2 2025	2,300	53	Construction started
Upplands-Bro	Viby 19:66	New logistics	Q3 2025	5,200	116	Design and planning4
Södertälje	Almnäs 5:23	New logistics	Q3 2025	17,000	271	Design and planning4
Enköping	Romberga 23:17	New light industrial	Q3 2025	2,700	54	Design and planning4
Upplands-Bro	Nygård 2:17 (GreenHub)	New light industrial	Q3 2025	3,400	78	Design and planning4
Stockholm	Båglampan 25	New light industrial	Q3 2025	4,300	100	Design and planning4
Total ongoing projects				53,600	1,005
Total excluding tenant improvments and reconstructions				51,200	968

1) Note that Stendörren aims to start construction on a pre-let basis, meaning the possible completion depends on leasing activities and time for construction start.

2) GFA (new production, extension), NLA (tenant improvement, refurbishment).

3) Includes book value of land in connection with new development.

4) Building permit obtained.

PROJECT

COMPLETED PROJECTS

Five projects encompassing a total area of 13,000 sqm were completed in the past four quarters, with most of the space let. One project is a large-scale tenant improvement for a new customer at Elementet 1 in Bromma. The others concern new construction of light industrial assets.

COMPLETED PROJECTS, PAST 12 MONTHS

MUNICIPALITY	PROPERTY	DESCRIPTION	COMPLETION	SIZE SQM1	INVESTMENT2 SEK M	OCCUPANCY RATE, %
Västerås	Hjulsmeden 1	New light industrial	Q3 2023	2,700	48	32
Södertälje	Almnäs 5:24	New light industrial	Q3 2023	2,300	47	100
Uppsala	Librobäck 21:3	New light industrial	Q4 2023	2,300	51	0
Stockholm	Elementet 1	Tenant improvement	Q4 2023	3,400	47	100
Södertälje	Almnäs 5:24	New light industrial	Q1 2024	2,300	49	100
Total completed projects				13,000	242
Total excluded tenant improvements				9,600	195

1) GFA (new production, extension), NLA (tenant improvement, refurbishment).

2) Includes book value of land in connection with new development.

PROPERTY VALUATION

Each quarter, Stendörren performs a fair value assessment of the entire property portfolio. On average approximately 20–30% of the portfolio is valued by external valuation firms and the remainder is valued internally. Every property in the portfolio is externally valued at least once during a rolling twelve-month period. The valuation model used by both the external valuation firms and Stendörren is based on a discounted cash flow model, supplemented with a comparable sales method where applicable.

The valuation model and parameters are reported in accordance with the principles described in Note 11 (Investment Properties) of the 2023 Annual Report. All properties are classified at Level 3 in accordance with IFRS 13. Expenses which are value increasing are activated. All other expenses are recognized as an expense in the period in which they arise. For larger projects, interest expense is capitalized during the development period.

The combined market value of the property portfolio as of June 30, 2024 amounted to SEK 12,642 million. A summary of the valuation parameters is presented in the table on page 17. The external valuations carried out during the year were mainly performed by CBRE and Newsec Sweden.

The building rights within the property portfolio, valued at a total of SEK 1,377 million (1,354 on March 31, 2024), are valued based on a comparable sales method. The main reason for the change in value of the building rights portfolio during the quarter was value-increasing investments in, for example, early projects. For further information, refer to the section Project portfolio summary on pages 12– 15. Realized and unrealized changes in value of the entire property portfolio during the period amounted to SEK 47 million (-157).

Value changes in the property portfolio during the period were primarily driven by adjusted yield requirements and market rent assumptions, as well as changed cash flows due to new lettings, renegotiations and terminated leases. Exchange rates resulted in a positive effect on the change in value for the property portfolio during the quarter. The average yield requirement of the property valuations as of June 30, 2024 amounted to 6.3% which is flat with regards to the previous quarter (see table of valuation parameters on page 17).

UNREALIZED CHANGES IN VALUE

CHANGE IN VALUE, PROPERTIES	JAN-JUN 2024
Adjusted yield requirements	-195
Cash flows	203
Building rights	7
Total	14

SENSITIVITY ANALYSIS

The sensitivity analysis below shows the assessed effect on the assessed market value if the operating net and/or market yield requirement increases or decreases by 0.25 or 0.5 percentage points.

CHANGES IN NET OPERATING INCOME
		–5.0 %	–2.5 %	0.0 %	2.5 %	5.0 %
	–0.50 %	568	916	1,263	1,611	1,959
	–0.25 %	-61	271	602	933	1,264
	0.00 %	-632	-316	0	316	632
IN NOI YIELD CHANGES	0.25 %	-1,154	-852	-549	-247	55
	0.50 %	-1,632	-1,343	-1,053	-763	-474

The sensitivity analysis does not claim to be exact, rather it is only indicative and aims to present the company's assessment of amounts in the context stated.

INTERIM FINANCIAL REPORT JANUARY–JUNE 2024

PROPERTY VALUATION

VALUATION PARAMETERS

(Previous year in brackets)	MIN	MAX	WEIGHTED AVERAGE
Discount rate, cash flow, %	5.5 (7.3)	11.0 (10.8)	8.2 (8.3)
Market yield requirement, residual value, %	5.3 (5.3)	9.0 (8.8)	6.3 (6.1)
Discount rate, residual value, %	7.3 (7.3)	11.0 (10.8)	8.4 (8.3)
Long-term vacancy assumption, %	3.0 (3.0)	25.0 (30.0)	5.9 (5.8)

CHANGE IN CARRYING AMOUNT, PROPERTIES

	JAN-JUN 2024	JAN-DEC 2023
Property portfolio, beginning of period	12,566	12,418
Acquisitions of new properties	19	–
Property sales	-224	–
Investments in existing properties	219	516
Currency effects	15	-13
Realized changes in value	32	1
Unrealized changes in value	14	-356
Property portfolio, end of period	12,642	12,566

FINANCING

INTERIM FINANCIAL REPORT JANUARY–JUNE 2024

As of June 30, 2024, the average time to maturity of interest-bearing liabilities to credit institutions amounted to 2.9 years (3.1). Including bonds, the average time to maturity amounted to 2.7 years (2.7). Stendörren uses interest-rate derivatives to hedge against a rise in the reference rate Stibor 90, through a portfolio of interest-rate caps with an average Stibor cap level of 1.6% and a total nominal value of SEK 4,850 million. Stendörren also has an interest-rate swap agreement with a nominal SEK 800 million hedged at the rate of -0.1%. The combined effect of the interest hedging gives a reference interest level of 1.4% on the interest hedged part of the interest-bearing liabilities. Stendörren also has four forward starting interest-rate swap agreements, which extends the average term of the derivative portfolio, for more details see table on page 19. At the end of the reporting period, approximately 85% of the company's interest-bearing liabilities were interest-hedged. Including the unhedged portion of the relevant IBOR and the hedged portion via swaps and interest-rate caps, the average interest maturity of interest-bearing liabilities was 2.9 years (2.1). The average interest rate on total interest-bearing liabilities including derivatives amounted to 3.9%.

Stendörren has two senior unsecured bonds outstanding. One bond, maturing on August 18, 2025, amounts to SEK 600 million with interest of Stibor 90 plus 3.90% and the other bond, maturing on December 21, 2026, is a green bond and amounts to SEK 500 million with interest of Stibor 90 plus 5.25%.

As of June 30, there was available liquidity of SEK 813 million, in the form of cash and cash equivalents of SEK 383 million, and available credit facilities totaling SEK 430 million.

Interest and loan maturities for all interestbearing liabilities are distributed over years according to the table below (the amounts constitute nominal amounts and exclude prepaid financing fees). Stendörren also has two hybrid bonds totaling SEK 680 million, which is recognized as equity. One bond, amounting to SEK 380 million, with an interest rate of Stibor 90 plus 6.50% has a first redemption date in September 2024. The other bond, a green hybrid bond amounting to SEK 300 million, with an interest rate of Stibor 90 plus 5.50% with a first redemption date in May 2027.

INTEREST AND LOAN MATURITIES

Interest and loan maturities for all interest-bearing liabilities are distributed over years according to the table below.

		INTEREST MATURITY/YEAR1		LOAN MATURITY
YEAR OF MATURITY		SEK M INTEREST, % SHARE, %		SEK M	SHARE, %
2024	2,164		32	36	1
2025	0		0	1,773	26
2026	2,700		40	1,125	17
2027	0		0	1,322	20
2028	0		0	2,500	37
>2028	1,900		28	9	0
Total/average	6,764	3.9	100	6,764	100

1) The interest maturity for 2024 includes all loan amounts that carry Stibor as base interest and that are not covered by interest derivatives.

SENSITIVITY ANALYSIS

CHANGE INTEREST-RATE BASE	(+) CHANGE SEK MILLION	(-) CHANGE SEK MILLION
+/–1.00%	-16	16
+/–2.00%	-32	40
+/–3.00%	-47	89

The sensitivity analysis presents the estimated effect on interest expense if the interest-rate base (primarily STIBOR 3M and NIBOR 3M) were to increase or decrease by 1, 2 or 3 percentage points.

The sensitivity analysis does not claim to be exact, rather it is only indicative and aims to present the company's assessment of amounts in the stated context.

INTERIM FINANCIAL REPORT JANUARY–JUNE 2024

INTEREST-RATE DERIVATIVES – ACTIVE

COUNTERPARTY	TYPE	START DATE	MATURITY DATE	NOMINAL VALUE SEK MILLION	FAIR VALUE SEK MILLION	CAP LEVEL %	YEARS REMAINING
Nordea	Interest-rate cap	2021-09-03	2026-09-03	300	6.7	2.00	2.18
Nordea	Interest-rate cap	2020-10-07	2025-10-07	600	12.9	1.00	1.27
Danske Bank	Interest-rate cap	2020-10-07	2025-10-07	300	10.1	1.00	1.27
SEB	Interest-rate cap	2023-11-10	2025-11-10	600	16.8	1.00	1.36
Nordea	Interest-rate cap	2023-11-10	2025-11-10	400	11.0	1.00	1.36
Swedbank	Interest-rate cap	2021-12-14	2026-12-14	1,100	26.1	2.00	2.46
SEB	Interest-rate cap	2021-12-23	2026-12-23	750	17.4	2.00	2.48
Swedbank	Interest-rate cap	2018-09-28	2024-09-28	250	0.9	2.25	0.25
Swedbank	Interest-rate cap	2021-09-03	2026-09-03	550	12.1	2.00	2.18
Swedbank	Interest-rate swap	2019-10-07	2024-09-18	800	7.7	-0.09	0.22
Total				5,650	122	1.38	1.622

1) Upon maturity, the derivative is replaced with a derivative (see table below) with a delayed start date at the same nominal amount.

2) Including derivatives with a delayed start date, the average maturity amounts to 3.14 years.

INTEREST-RATE DERIVATIVES – WITH DELAYED START DATE

COUNTERPARTY	TYPE	START DATE	MATURITY DATE	NOMINAL VALUE SEK MILLION	FAIR VALUE SEK MILLION	CAP LEVEL %	YEARS REMAINING
Danske Bank	Interest-rate swap	2025-10-07	2030-10-07	600	-1.6	2.45	6.27
Danske Bank	Interest-rate swap	2025-10-07	2029-10-07	300	-0.2	2.39	5.27
Swedbank	Interest-rate swap	2025-11-10	2030-11-10	400	-2.1	2.49	6.37
Swedbank	Interest-rate swap	2025-11-10	2029-11-10	600	-2.7	2.41	5.37
Total				1,900	-7	2.44	5.85

The combined effect of the interest hedging gives a reference interest level of 1.4% on the interest hedged part of the interest-bearing liabilities. At the end of the reporting period, approximately 85% of the company's interest-bearing liabilities were interest-hedged.

SUSTAINABILITY

SUSTAINABILITY FOCUSING ON FIVE AREAS

The purpose of Stendörren's sustainability strategy is to contribute to a sustainable development of its own operations and society at large. Five focus areas have been identified where Stendörren has the greatest influence and opportunity for change and improvement regarding environmental, climate, and social aspects. The strategy has been developed through analysis and dialogue with relevant stakeholders, considering industry, market, external factors and various external requirements. Stendörrens overall goal is to achieve net-zero carbon emissions throughout the value chain by 2040.

OPERATIONAL EXCELLENCE

TARGET:

Suppliers to Stendörren's operations within management and development must sign the company's Code of Conduct.

All vehicles are to be fossil-free by 2025.

Avoid flying whenever practically possible.

RESOURCE EFFICIENCY

TARGET:

Reduce energy intensity (kwh/sqm) by at least 30% by 2030 (baseline year 2020).

70% of the property portfolio (sqm) are to have environmental certification by 2025.

100% of new developments and major refurbishments are to have environmental certification.

Enable increased recycling of tenants' waste.

Minimize construction waste from new development <1% to landfill, by 2030.

100% fossil free energy by 2030 (purchased by Stendörren).

Reduce carbon footprint in new development by at least 40% kgCO2/sqm GFA by 2030 (baseline year 2022).

ATTRACTIVE EMPLOYER

TARGET:

Ongoing work against discrimination and annual follow-up, feedback on equality and non-discrimination.

Strive for equality and diversity among all professional categories with the goal of a 40/60 gender distribution for management executives by 2025 at the latest.

Achieve an eNPS score of at least 40 in the annual employee surveys.

All employees are to complete training in the Code of Conduct.

FUTURE PROOFING

TARGET:

Include relevant TCFDindicators and report according to TCFD.

Net-zero carbon emissions target validated by the Science Based Targets initiative (SBTi).

SOCIAL RESPONSIBILITY

TARGET:

Create job opportunities for people standing far from the labour force.

1,175kWp

of June 30, 2024 (inc. ongoing installations)

Total capacity of

63.7% installed solar energy as

Environmentally certified area out of total area as of June 30, 2024

Reduction of energy intensity (kWh/sqm) as of June 30, 2024, compared with base year 2020

-25.8%

Target of 70% certified area by 2025

Target of at least 30% reduction from base year 2020 to 2030

SUSTAINABILITY

STENDÖRREN SUPPORTS THE UN SDGS

Stendörren's largest climate impact comes from the development and management of the company's property portfolio. It is crucial for the company to focus on resource efficiency throughout the value chain in terms of management, renovation and new construction, including selection of building materials and energy sources, to reduce climate impact. Stendörren strives for creating conditions for a safe and healthy work environment for both Stendörren's employees, tenants and suppliers. The company's routines and processes ensure that the company acts responsibly with controlled risk and in line with expectations and regulatory guidelines and requirements.

SUSTAINABLE DEVELOPMENT GOALS

The sustainability strategy is based on the UN Sustainable Development Goals (SDGs) for 2030. Stendörren supports the SDGs and has identified nine goals, where the company has a direct impact, which are the following no, 3, 5, 7, 8, 10, 11, 12, 13 and 15.

INTERIM FINANCIAL REPORT JANUARY–JUNE 2024

Amounts in SEK million

KONCERNEN I SAMMANDRAG

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Amounts in SEK million

	2024	2023	2024 JAN-JUN JAN-JUN APR-JUN APR-JUN JAN-DEC	2023	2023
Rental income	444	421	221	209	843
Other income	8	10	0	10	11
Total income	452	432	221	219	854
Operating expenses	-78	-75	-29	-31	-139
Maintenance costs	-11	-9	-3	-4	-19
Property tax	-12	-13	-6	-7	-24
Net operating income	351	334	183	178	672
Central administration	-45	-41	-22	-22	-77
Financial income and expenses	-144	-141	-69	-72	-298
Unrealized changes in exchange rates	8	17	-2	19	1
Lease expenses/Ground rent	-5	-4	-3	-2	-10
INCOME FROM PROPERTY
MANAGEMENT	165	164	87	101	287

	2024	2023	2024 JAN-JUN JAN-JUN APR-JUN APR-JUN JAN-DEC	2023	2023
Change in value of investment properties	47	-157	103	-153	-355
Change in value of financial instruments	-33	-1	-61	22	-173
Profit/loss before tax	178	7	129	-31	-241
Tax	-23	-8	-31	-14	-5
Profit/loss for the period	155	-1	98	-45	-246
Translation differences Total other comprehensive income	1 1	3 3	-1 -1	3 3	0 0
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD	156	2	97	-42	-247
Comprehensive income for the period attributable to:
Parent Company's shareholders	156	2	97	-42	-247
Earnings per share, before dilution, SEK	4,62	-1,11	3,10	-2,02	-10,54
Earnings per share, after dilution, SEK	4,62	-1,11	3,10	-2,02	-10,54
Average number of shares out standing during the period, millions	28,43	28,43	28,43	28,43	28,43
Average number of shares during the period after dilution, millions	28,44	28,44	28,44	28,43	28,43

GROUP SUMMARY

COMMENTS TO THE CONSOLIDATED INCOME STATEMENT

RESULT

Compared to the corresponding period in 2023, Stendörren reported an increase of approximately SEK 20 million in income and of approximately SEK 17 million in net operating income for January–June 2024, which corresponds to an underlying increase of 7% for the comparable portfolio. After deduction of financing costs and central administration costs, income from property management totaled SEK 165 million (164). Profit for the period amounted to SEK 155 million (-1), corresponding to SEK 4.62 per share (-1.11).

RENTAL INCOME

Rental income increased by approximately 5% to SEK 444 million (421) compared with the corresponding period 2023. The increased income was driven by higher rents in the existing portfolio and from completed and leased projects. In the comparable portfolio the increase was approximately 7%. The slightly higher increase in the comparable portfolio is due to the sale of the property Varvet 1 in Q1 2024. In addition to rental income, the company also reports other income of approximately SEK 8 million that mainly refers to non-recurring income and an insurance payment during the first quarter 2024.

PROPERTY EXPENSES

Recognized property expenses increased by approximately SEK 4 million to SEK 101 million (97). Total property expenses in the comparable portfolio increased by approximately SEK 6 million, which corresponds to about 6%. The main reason for the increase in expenses was higher costs for district heating and water & sewage compared to the corresponding period in 2023, which is due to higher tariffs. Slightly higher costs for maintenance resulting from, for example, water damage caused by snow and higher insurance premiums in the first quarter 2024.

CENTRAL ADMINISTRATION

Costs for central administration for the period amounted to SEK 45 million (41) and comprised of costs for central administration, company management, Board and auditors.

NET FINANCIAL ITEMS

Financial income amounted to SEK 76 million (39) and is primarily derived from income attributable to interest-rate derivatives. Financial expenses, excluding lease expenses, rose to SEK -221 million (-180), mainly due to higher lending and rising interest levels. Lease expenses (pertaining to IFRS 16 Leases) amounted to SEK -5 million (-4). The expense mainly comprised ground rent and rent.

INCOME FROM PROPERTY MANAGEMENT

Income from property management amounted to SEK 165 million (164) during the reporting period, mainly due to higher income.

CHANGES IN VALUE

The company reported realized and unrealized changes in value of the property portfolio of SEK 47 million (-157). Value changes in the property portfolio during the period were primarily driven by adjusted yield requirements and market rent assumptions as well as changed cash flows due to, for example, new leases, renegotiated but also terminated agreements. Exchange rates had a positive value change on the property portfolio during the period, for details see page 17. The market valuation of the interest-rate derivatives resulted in a change in value of SEK -33 million (-1) as per the reporting date.

TAX

The tax expense in profit or loss consists of current tax of SEK -18 million (-1) and deferred tax of SEK -5 million (-7).

GROUP SUMMARY

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

Amounts in SEK million

	30 JUN 2024	30 JUN 2023	31 DEC 2023
ASSETS
Non-current assets
Intangible assets	2	3	3
Investment properties	12,642	12,513	12,566
Right-of-use assets	259	254	259
Equipment	1	2	1
Non-current receivables	3	2	3
Interest-rate derivative	115	267	148
Total non-current assets	13,022	13,041	12,981
Current assets Current receivables	100	92	79
Cash and cash equivalents	383	143	134
Total current assets	484	235	213

30 JUN 2024	30 JUN 2023	31 DEC 2023
5,130	5,115	4,838
5,502	5,423	5,826
59	42	57
259	254	259
1,005	1,009	999
4	4	4
6,830	6,732	7,145
1,233	1,123	825
313	306	384
1,546	1,429	1,210
13,506	13,276	13,193
		4,838
	–	–
	5,130 -	5,115

THE PERIOD IN BRIEF TARGETS AND OUTCOME THE BUSINESS SUSTAINABILITY FINANCIAL INFORMATION OTHER INFORMATION

GROUP SUMMARY

FINANCIAL POSITION

NON-CURRENT ASSETS

CURRENT ASSETS

the end of the period.

Stendörren's non-current assets mainly consist of investment properties. As of June 30, 2024, the value of the total property portfolio amounted to SEK 12,642 million (12,513). For analysis and comments, see page 9–10.

Current assets amounted to SEK 484 million (235) on the closing date, consisting of cash and cash equivalents of SEK 383 million (143) and rental receivables and other current receivables of SEK 100 million (92). Available liquidity, in the form of cash and cash equivalents of SEK 383 million and available credit facilities totaling SEK 430 million, thus amounted to SEK 813 million at Loan arrangement costs of SEK -29 million (-27) were allocated in accordance with the company's accounting policies. The short-term portion of the interest-bearing liabilities amounted to SEK 1,233 million (1,123) and consisted of loans and repayments that are due within the next 12 months.

INTEREST AND LOAN MATURITIES

Stendörren aims to reduce interest and refinancing risks in its operations by spreading the maturity structure for interest rates and loan maturities over several years. Interest-rate risks are managed mainly through interest-rate derivatives. For a more detailed description of the interest and loan maturity portfolio, see page 18.

DEFERRED TAX LIABILITIES (NET)

Deferred tax liabilities amounted to SEK 1,005 million (1,009) on June 30, and related to the tax on properties, derivatives, untaxed reserves and unutilized losses carried forward.

OTHER CURRENT LIABILITIES

In addition to the short-term portion of interest-bearing liabilities, current liabilities include accounts payable, accrued expenses and deferred income, tax liabilities and other current liabilities, amounting to a total of SEK 313 million (306).

EQUITY

As of June 30, 2024, the Group's equity amounted to SEK 5,130 million (5,115) and the equity ratio to 39% (39).

INTEREST-BEARING LIABILITIES

The carrying amount of the Group's interest-bearing liabilities at the end of the reporting period amounted to SEK 6,735 million (6,546) corresponding to a loan-to-value ratio of 50% (49). The liabilities consisted of loans from credit institutions of SEK 5,664 million (5,268), two bonds totaling SEK 1,100 million (1,300).

GROUP SUMMARY

CONSOLIDATED CHANGES IN EQUITY

Amounts in SEK million

	SHARE CAPITAL	OTHER CAPITAL CONTRIBUTED	TRANSLATION DIFFERENCES	RETAINED EARNINGS INCLUDING PROFIT FOR THE PERIOD	HYBRID BOND	TOTAL EQUITY ATTRIBUTABLE TO THE COMPANY'S OWNERS
Opening balance equity, Jan 1, 2022	17	1,181	–	3,232	786	5,216
Interest/dividend hybrid bond	–	–	–	-58	–	-58
Comprehensive income Jan-Dec 2022	–	–	3	268	–	271
Closing balance equity, Dec 31, 2022	17	1,181	3	3,442	786	5,429
Share option program	–	1	–	–	–	1
Interest/dividend hybrid bond	–	–	–	-59	–	-59
Repurchase hybrid bond	–	–	–	–	-288	-288
Comprehensive income Jan-Dec 2023	–	–	–	-246	–	-246
Closing balance equity, Dec 31, 2023	17	1,182	3	3,137	498	4,838
Interest/dividend hybrid bond	–	–	–	-26	–	-26
Issue of hybrid bond	–	–	-	-	296	296
Repurchase hybrid bond	-	-	-	-	-134	-134
Comprehensive income Jan-Jun 2024	-	–	1	155	-	156
Closing balance equity, June 30, 2024	17	1,182	4	3,266	660	5,130

COMMENTS ON CONSOLIDATED CHANGES IN EQUITY

As of June 30, 2024, the Group's equity amounted to SEK 5,130 million (5,115). The 2024 AGM resolved on a dividend totaling SEK 0 million (0).

GROUP SUMMARY

CONSOLIDATED STATEMENT OF CASH FLOWS

Amounts in SEK million

	2024	2023	2024 JAN-JUN JAN-JUN APR-JUN APR-JUN JAN-DEC	2023	2023
Cash flow from operating activities
Income from property management	165	164	87	101	287
Adjustment for non-cash items	8	-15	-4	-17	0
Income tax paid	-7	-6	-3	-1	-13
Cash flow from operating activities before changes in working capital	166	143	80	83	274
Changes in working capital
Changes in operating receivables	-51	-6	-34	4	4
Changes in operating liabilities	-66	-11	-44	-41	28
Cash flow from operating activities	49	125	2	46	307
Investing activities
Investments in existing properties	-219	-220	-128	-100	-516
Acquisitions of Group companies/properties	-19	–	-19	–	–
Divestments of Group companies/properties	224	–	-	–	–
Cash flow from investing activities	-14	-220	-147	-100	-516

Amounts in SEK million

	2024	2023	2024	2023 JAN-JUN JAN-JUN APR-JUN APR-JUN JAN-DEC	2023
Financing activities
Issued employee stock options	-	1	-	1	1
Issue hybrid bond	296	-	296	-	-
Dividend hybrid bond	-26	-31	-13	-13	-59
Repurchase hybrid bond	-134	-288	-134	–	-288
Raised interest-bearing liabilities	2,226	491	1,152	240	1,379
Repayment of interest bearing liabilities Deposits	-2,150 3	-257 6	-1,373 1	-224 6	-1,026 21
Cash flow from financing activities	215	-77	-71	10	28
Cash flow for the period	250	-172	-216	-44	-181
Cash and cash equivalents at the beginning of period Cash flow for the period	134 250	315 -172	599 -216	187 -44	315 -181
Cash and cash equivalents at the end of the period	383	143	383	143	134

PARENT COMPANY SUMMARY

INCOME STATEMENT FOR PARENT COMPANY

Operations in the Parent Company consist of management functions for all of the Group's companies and properties. All staff are employed by the Parent Company. No properties are owned directly by the Parent Company. The Parent Company's income during the period mainly comprised of SEK 66 million in recharged services rendered by its own staff. Net interest income consists of net interest charged on intra-Group loans and external interest expense for the corporate bond programs. Cash and cash equivalents as of June 30, 2024 amounted to SEK 36 million (46) and equity amounted to SEK 1,486 million (1,400).

CONDENSED INCOME STATEMENT FOR THE PARENT COMPANY

Amounts in SEK million Amounts in SEK million

	2024	2023	2024 JAN-JUN JAN-JUN APR-JUN APR-JUN JAN-DEC	2023	2023
Net sales Operating expenses	66 -66	62 -60	31 -31	33 –31	123 -121
Profit before financial items	0	2	0	2	2
Financial items Income from shares in subsidiaries Net financial items	- 22	– 23	- 14	– 9	-38 20
Profit/loss after financial items	22	25	14	11	-16

	2024	2023 JAN-JUN JAN-JUN APR-JUN APR-JUN JAN-DEC	2024	2023	2023
Appropriations Profit/loss before tax	- 22	– 25	- 14	– 11	-3 -19
Tax	-	–	-	–	–
Profit for the period	22	25	14	11	19

PARENT COMPANY SUMMARY

BALANCE SHEET FOR PARENT COMPANY

CONDENSED BALANCE SHEET FOR THE PARENT COMPANY

Amounts in SEK million Amounts in SEK million

	30 JUN 2024	30 JUN 2023	31 DEC 2023
ASSETS
Non-current assets
Intangible assets	2	3	3
Equipment	10	9	10
Shares/participations in subsidiaries	1,000	995	979
Receivables from subsidiaries	2,544	3,477	3,459
Deferred tax assets	0	0	0
Total non-current assets	3,556	4,484	4,450
Current assets
Receivables from subsidiaries	604	262	25
Current receivables	8	4	6
Cash and cash equivalents	36	46	30
Total current assets	648	311	62
TOTAL ASSETS	4,204	4,796	4,512

TOTAL EQUITY AND LIABILITIES	4,204	4,796	4,512
Total current liabilities	639	382	30
Other current liabilities	30	43	30
Current liabilities Liabilities to subsidiaries	609	338	–
Total non-current liabilities	2,079	3,014	3,152
Interest-bearing liabilities Liabilities to subsidiaries	1,093 986	1,294 1,720	1,091 2,061
Non-current liabilities
EQUITY AND LIABILITIES Equity	1,486	1,400	1,329
	30 JUN 2024	30 JUN 2023	31 DEC 2023

SHARE CAPITAL AND OWNERSHIP

SHARE CAPITAL AND OWNERSHIP

SHARE CAPITAL

The share capital in Stendörren amounts to SEK 17,056,959, split between 2,500,000 Class A shares and 25,928,265 Class B shares. Each share has a quotient value of SEK 0.60. Class A shares in Stendörren carry entitlement to ten votes at a general meeting and Class B shares carry entitlement to one vote at a general meeting. Class A shares can be converted to Class B shares at a ratio of 1:1. All shares carry the same right to shares in the company's assets and profits. According to the Articles of Association, the company also has the option of issuing preference shares

AUTHORIZATIONS

On May 23, 2024, the Annual General Meeting resolved to authorize the Board of Directors to, up until the next Annual General Meeting, with or without deviation from the shareholders' preferential rights, with cash payment or payment through set-off or through capital contributed in kind, or otherwise with certain conditions, resolve to issue shares of Class A or B, convertibles for shares of Class A or B or warrants for shares of Class A or B, as well as preference shares. However, an issue without preferential rights for the shareholders may not result in an increase of the company's shares of more than a total of 20% calculated at the date for the 2024 Annual General Meeting. If the Board of Directors resolves on an issue without preferential rights for shareholders, the reason must be to broaden the ownership base, acquire or facilitate the acquisition of working capital, increase the liquidity of the share, carry out company acquisitions or acquire or facilitate the acquisition of capital for company acquisitions. An issue without preferential rights for shareholders must be conducted on market terms.

INCENTIVE PROGRAMS

Stendörren have two incentive programs that were resolved on at the Extraordinary General Meeting in September 2020 and the 2023 Annual General Meeting, respectively. Both programs were targeted toward the company's employees and include issues of warrants, which the participants in the relevant program acquired for cash payment to the Parent Company. The warrants were acquired at market value calculated in accordance with the Black & Scholes valuation method performed by independent valuers.

Under the incentive program 2020-2025, there were by the end of the period 252,250 warrants and each warrant entitles the holder, during a period of two weeks from the date of publication of the interim financial report for the period January 1–September 30, 2025, to subscribe for one new Class B common share in the company at a subscription price of SEK 175 per share.

Under the incentive program 2023 – 2028, there were by the end of the period 50,060 warrants and each warrant entitles the holder, during a period of two weeks from the date of publication of the interim financial report for the period January 1–March 31, 2028, to subscribe for one new Class B common share in the company at a subscription price of SEK 285 per share.

Upon full exercise of the warrants in the two outstanding programs, the share capital will increase by SEK 181,386 through the issuance of 302,310 Class B shares, each with a quotient value of SEK 0.6. The dilution effect at full utilization corresponds to approximately 1.1% of the capital and 0.6% of the number of votes based on the number of outstanding shares as of the reporting date.

STOCK EXCHANGE

The Stendörren Class B share is traded on Nasdaq Stockholm Mid Cap. The company's ticker is STEF B. The company's ISIN is SE0006543344. A trading unit corresponds to one (1) share.

INTERIM FINANCIAL REPORT JANUARY–JUNE 2024

SHARE CAPITAL AND OWNERSHIP

LARGEST SHAREHOLDERS AS OF JUNE 30, 2024

SHAREHOLDERS1)	TOTAL SHARES	NO. OF CLASS A SHARES	NO. OF CLASS B SHARES	% OF CAPITAL	% OF VOTES
Stendörren Real Estate AB	11,532,606	2,000,000	9,532,606	40.6	58.0
Altira AB	3,050,000	500,000	2,550,000	10.7	14.8
SEB Investment Management	3,732,715	0	3,732,715	13.1	7.3
Länsförsäkringar Fastighetsfond	2,591,808	0	2,591,808	9.1	5.1
Tredje AP-fonden	941,888	0	941,888	3.3	1.9
Verdipapirfondet Odin Eiendom	784,644	0	784,644	2.8	1.5
Didner & Gerge Fonder Aktiebolag	739,223	0	739,223	2.6	1.5
Handelsbanken Fonder	710,691	0	710,691	2.5	1.4
SEB Luxembourg Branch	496,104	0	496,104	1.7	1.0
Malmer. Staffan	361,103	0	361,103	1.3	0.7
Additional owners	3,487,483	0	3,487,483	12.3	6.8
Total	28,428,265	2,500,000	25,928,265	100.00	100.00

1) The total number of shareholders on the reporting date was 3,194.

THE PERIOD IN BRIEF TARGETS AND OUTCOME THE BUSINESS SUSTAINABILITY FINANCIAL INFORMATION OTHER INFORMATION

OTHER INFORMATION

RELATED PARTY TRANSACTIONS

During the period, the company carried out a transaction with a senior executive for the lease of two garage spaces. All transactions with related parties are conducted on market terms. Other than what is stated above, the company is not and has not been party to any business transaction, loan, guarantee or guarantee connection with any of the Board members, senior executives, major shareholders or related parties to any of these in 2024.

RISKS

Risks and uncertainties are primarily related to changes in macroeconomic factors affecting demand for premises and the price of capital. Stendörren is also exposed to the risk of unforeseen increases in operating expenses or maintenance costs, which cannot fully be compensated for in leases with tenants. There is also a risk that the company's lenders do not extend credit facilities at maturity. Real estate transactions are a part of the company's business model and are, by their nature, associated with uncertainties and risks. More information about these risks can be found on pages 81–84 in the company's Annual Report for the 2023 fiscal year. In addition to the risks that are outlined in the Annual Report, the risks related to the uncertain macroeconomic climate have been described in greater detail in this report, for example, in the Statement from the CEO on pages 4–5 and the sensitivity analysis for changes in interest rates on page 18.

ACCOUNTING POLICIES

This interim report has been prepared in accordance with IAS 34 Interim Financial Reporting and the Swedish Annual Accounts Act. The same accounting policies, valuation principles and calculation methods were applied as in the most recently published financial information, see Note 1 of the 2023 Annual Report. Investment properties are measured at Level 3 of the fair value hierarchy according to IFRS 13. Derivatives are measured at fair value in the consolidated financial statements and at Level 2 in accordance with IFRS 13. The Parent Company applies the Annual Accounts Act and RFR 2 Accounting for Legal Entities.

AUDITOR'S REVIEW

This interim financial report has not been reviewed by the company's auditors.

CALENDAR

EVENT	DATE
Interim Report Jan-Sep 2024	25 October 2024
Year-end Report Jan-Dec 2024	18 February 2025

ASSURANCE

THE BOARD OF DIRECTORS AND CEO

The Board of Directors and the CEO assure that the report provides a fair overview of the Parent Company and the Group's operations, financial position and results and describes the most significant risks and uncertainties faced by the Parent Company and the Group companies.

Stockholm, July 19, 2024

Andreas Philipson Chairman

Carl Mörk Board member Helena Levander Board member

Joakim Rubin Board member Seth Lieberman Board member

Roniek Bannink Board member

Erik Ranje CEO

This information is such that Stendörren Fastigheter AB is required to publish according to the EU Market Abuse Regulation and the Swedish Securities Market Act. The information was provided, through the agency of the contact person below, for publication on July 19, 2024 at 7:00 am CEST.

THE PERIOD IN BRIEF TARGETS AND OUTCOME THE BUSINESS SUSTAINABILITY FINANCIAL INFORMATION OTHER INFORMATION

APPENDIX 1

ASSESSED EARNINGS CAPACITY1

According to the company's assessment, the total annual rental income (after deductions for vacancies and discounts) amounts to approximately SEK 883 million on July 1, 2024. The company also assesses that current property expenses amount to approximately SEK 187 million. Accordingly, the Group is expected to generate annual net operating income of approximately SEK 696 million.

Costs for central administration is assessed to approximately SEK 81 million, net financial items to approximately SEK 270 million and leasing costs to approximately SEK 10 million. This totals annual income from property management of approximately SEK 335 million on July 1, 2024.

This information is only the company's own assessment of the earnings capacity as of July 1, 2024, without taking into account new letting, vacancies or index-related rent changes that have not yet had an effect or other, implemented measures that have not yet had effect on income from property management.

Costs for central administration were based on actual outcome for the past 12 months and net financial items were calculated based on interest-bearing liabilities and assets on the closing date. Costs for interest-bearing liabilities were based on the Group's reported average interest rate on the closing date plus allocated financing costs and costs for unutilized credit facilities on the closing date. Leasing costs essentially refer to ground rent, based on actual outcome for the past 12 months adjusted for the holding period.

Any additional acquisitions or sales announced by the company, but which have not yet been entered into or resigned, are also not included.

The earnings capacity also does not take into account ongoing and recently completed projects that have not yet generated revenue during the reporting period are expected, at the rate of leasing and completion, to be able to add approximately SEK 70 million in net operating income. Of this amount, approximately SEK 18 million relates to recently completed or projects with completion within one year and for which lease agreements already exist, approximately SEK 30 million pertains to projects within light industry that are being built or intended to be built on speculation, and approximately SEK 22 million pertains to projects in within logistics that require leasing before construction starts.

These data should therefore not be seen as a forecast of future profit development for Stendörren.

ASSESSED EARNINGS CAPACITY1

Financial income and expenses Lease expenses/Ground rent	-270 -10
Central administration	-81
Net operating income	696
Property tax	-27
Maintenance costs	-27
Operating expenses	-134
Total income	883

1) This is the Company's best assessment of current earnings capacity on an annual basis as of July 1, 2024 and not a forecast of future expected earnings.

ALTERNATIVE PERFORMANCE MEASURES

DEFINITIONS

The European Securities and Markets Authority (ESMA) has issued guidelines for the use of Alternative Performance Measures, (APMs) related to companies with securities that are listed on a regulated market. The guidelines have been developed in order to increase the transparency and the comparability in APMs commonly used in prospectuses and other compulsory information submitted by listed companies. Stendörren provides more detailed definitions and explanations of the APMs it uses. These definitions and explanations, along with a reconciliation table, are in accordance with the ESMA guidelines and can be found on www.stendorren.se, investor relations.

CURRENT NET ASSET VALUE

Book equity net of hybrid capital adjusted for actual deferred tax liability, calculated at an effective tax rate of 5.9% and adjusted for interest-rate derivatives.

AREA WEIGHTED OCCUPANCY RATE

Area contractually leased to tenants in relation to total lettable area.

AVERAGE RETURN ON EQUITY

Profit for the period in relation to average equity the last 12 months.

LOAN-TO-VALUE RATIO

Interest-bearing liabilities in relation to total assets.

LOAN-TO-VALUE RATIO AT PROPERTY LEVEL

Interest-bearing liabilities secured in properties in relation to the fair value of the properties.

NOI YIELD

Property NOI the last 12 months in relation to the fair value of the properties.

NET OPERATING INCOME

Total rental income from the properties reduced by property operating expenses.

ECONOMIC OCCUPANCY RATE

Contractual annual rent in relation to rental value, excluding properties not lettable at the end of the period due to demolition and/or major project development.

INCOME FROM PROPERTY MANAGEMENT

Profit for the period before value changes and tax.

NET FINANCIAL ITEMS

Net financial items are the difference between interest income and interest expenses as well as leasing costs.

AVERAGE INTEREST RATE

The weighted average interest rate on all interest-bearing liabilities.

WEIGHTED AVERAGE

of years remaining until expiry.

UNEXPIRED LEASE TERM The weighted average remaining lease term on all existing property leases. Expressed in terms

LOAN MATURITY

The weighted average remaining time to maturity for interest-bearing liabilities, expressed in years.

CASH FLOW PER SHARE

Cash flow from operating activities before changes in working capital according to the cash flow statement divided by the average number of shares outstanding before dilution.

LONG-TERM NET ASSET VALUE

Book equity net of hybrid capital adjusted for deferred tax and the derivatives value (+/-).

NAV GROWTH

Percentage change in the long-term net asset value the last 12 months.

NET LETTING

Annual rent for new signed leases reduced by annual rent for terminations and annual rent for bankruptcies.

EARNINGS PER SHARE

Net profit after hybrid interest divided by the average number of shares outstanding, before and after dilution.

AVERAGE INTEREST MATURITY INCLUDING DERIVATIVES

The weighted average remaining time to interest adjustment on interest-bearing liabilities including the effect of interest derivatives. Expressed in years remaining.

ICR

Income from property management the last 12 months adding back net financial expenses, in relation to net financial expenses (excluding the rights of use of land lease properties that in accordance with IFRS 16 is accounted for as a financial cost).

EQUITY RATIO

Book equity in relation to total balance sheet (excluding the leasing liability for the rights of use of land lease properties that, in accordance with IFRS 16, is accounted for as a long term liability).

TOTAL RETURN

Property NOI increased by change in value of investment properties during the last 12 months divided by the average fair value of the properties during the same period.

SURPLUS RATIO

Properties' NOI divided by total income during the same period.

Stendörren Fastigheter AB (publ) is an expansive property company listed on Nasdaq Stockholm Mid Cap. Our business concept is to create profitable growth in net asset value by managing, developing and acquiring properties and building rights within logistics, warehouse and light industry in Nordic growth regions. When commercially viable, we rezone such existing properties and thereby create residential building rights for further development and management, mainly in Greater Stockholm and the rest of the Mälardalen region.

FOR MORE INFORMATION, PLEASE CONTACT:

ERIK RANJE, CEO erik.ranje@stendorren.se +46 8 518 331 00

PER-HENRIK KARLSSON, CFO

per-henrik.karlsson@stendorren.se +46 8 518 331 00