Wallenstam — Interim / Quarterly Report 2024

Jul 8, 2024

Interim Report

JANUARY 1–JUNE 30, 2024

"All of Wallenstam's numbers are looking better, income from property management is going up, net operating income is increasing and the surplus ratio is back at the levels that we saw before the electricity prices soared. Net financial items are lower, but we see a turnaround as the average interest rate has gone down to 3.17 percent on closing day compared to 3.27 percent in Q1. The results show that Wallenstam's business is working very well!"

"I am very happy that we have started the construction of just over 400 apartments in Årstaberg in Stockholm. We hope to be able to start more projects both in Stockholm and Gothenburg during the fall. Demand for our apartments is very good, which reflects the severe prevailing housing shortage in the areas we operate in but it is also a confirmation that we are offering the right products in the right locations."

HANS WALLENSTAM, CEO

JANUARY 1 –JUNE 30, 2024

• The equity/assets ratio amounted to 45 percent and the loanto-value ratio was 46 percent.
• Investment in new construction and reconstruction of properties amounted to SEK 1,139 million (1,396).
• On closing day, 1,238 apartments were under construction.
• Rental income amounted to SEK 1,457 million (1,339).
• Income from property management amounted to SEK 563 million (532).
• Changes in value of investment properties amounted to SEK -21 million (-606).
• Changes in value of financial instruments amounted to SEK 92 million (-124).
• Profit before tax amounted to SEK 570 million (-119) and profit after tax amounted to SEK 408 million (-170), equivalent to SEK 0.6 per share (-0.3).
• Net asset value per share amounted to SEK 56.70, compared to SEK 56.20 on December 31, 2023.

APRIL 1–JUNE 30, 2024

• • Rental income amounted to SEK 737 million (679).
• Income from property management amounted to SEK 294 million (267).
• Changes in value of investment properties amounted to SEK -6 million (-611).
• Profit after tax amounted to SEK 74 million (-218), equivalent to SEK 0.1 per share (-0.3).

Comparisons in brackets refer to the corresponding period of the previous year for performance measures, and the latest year-end for balance sheet measures, unless otherwise stated.

Wallenstam in brief

210

INVESTMENT PROPERTIES

SEK 64 billion

VALUE OF INVESTMENT PROPERTIES

SEK 33 billion

MARKET CAPITALIZATION

96%

OCCUPANCY RATE, LETTABLE AREA

1.4 million sq m

LETTABLE AREA

1,238

APARTMENTS UNDER CONSTRUCTION

53

Events second quarter

During the quarter, Wallenstam started the construction of 408 apartments in Årstaberg, Stockholm. An inauguration ceremony took place in May with Magdalena Andersson, leader of the Swedish Social Democratic party, and CEO Hans Wallenstam as well as invited guests.

In April, Wallenstam acquired land, Nacka Älta 69:4, from Nacka Municipality for a purchase price of SEK 136 million. An additional purchase price of SEK 15 million shall be paid in April 2026. Wallenstam has also sold the properties Sundbyberg Freden Större 15, 21 and 22 including ready-to-use building rights. The sale has been carried out through company transactions to Sundbyberg Relder AB, a JV company owned by Reliwe Sverige AB and Derome Husproduktion AB, for an agreed property value of SEK 147 million.

Business plan 2030 goal: Achieve a net asset value of SEK 100/share

During the business plan 2030, Wallenstam has a goal of increasing the net asset value through a continued productive, cost-efficient and service-oriented business in the growth regions of Gothenburg, Stockholm and Uppsala. Successful letting, efficient management, value-creating investments, profitable new construction and profitable transactions will contribute to this net asset value growth. During the business plan, the equity/assets ratio shall not be less than 35 percent.

On June 30, 2024, the net asset value per share amounted to SEK 56.70 (56.20).

EQUITY/ASSETS RATIO LOAN-TO-VALUE RATIO N E T O PER ATI N G I N CO M E

45 percent 46 percent SEK 1,110 million

Comments by the CEO

I nflation in Sweden is at the levels desired by the Riksbank. The first interest rate cut has been carried out, and we expect further interest rate cuts during the fall which are absolutely necessary for a positive economic development in Sweden going forward. As the interest rate is now coming down, more investments can start and thereby also contribute to increased growth.

Improved results

All of Wallenstam's numbers are looking better, income from property management is going up, net operating income is increasing and the surplus ratio is back at the levels that we saw before the electricity prices soared. Net financial items are lower, but we see a turnaround as the average interest rate has gone down to 3.17 percent on closing day compared to 3.27 percent in Q1. The results show that Wallenstam's business is working very well!

We build where people want to live

I am very happy that we started the construction of just over 400 apartments in Årstaberg in Stockholm. We hope to be able to start more projects both in Stockholm and Gothenburg during the fall. We are extremely careful with our new construction projects. Partly in relation to where we build – it should be where people want to live –, and partly in relation to how the construction will be carried out. Naturally, we ensure financial calculations, but also what partners and suppliers we work with. We conduct background checks on everyone who works for us and also checks at our construction sites, as part of preventing organized crime, and as far as possible we also ensure that those working with us are financially stable. These efforts increase our administration, and preparation times are longer, but it pays off in the long run.

Our ongoing projects are progressing well and we have many apartments that will be ready for occupation during the fall. Demand for our apartments is very good, which reflects the severe prevailing housing shortage in the areas we operate in but it is also a confirmation that we are offering the right products in the right locations. As an example, I can mention our Nacka Grace project where we recently started lettings: in one day, we and the Stockholm Housing Agency received thousands of registrations of interest for the first 23 apartments.

Stable occupancy rate commercial

During the quarter, we have launched full-service offices that are ready for occupation at Kaserntorget in central Gothenburg, where everything is already in place for the tenant when the contract is signed. Reuse was in focus when we developed the property – all from preserved layouts to the reuse of doors, glass partitions, kitchenettes and roof tiles. Four new tenants have already moved into 1,400 square meters in the property. Otherwise, it is generally noticeable in the commercial market that companies are having a tougher time, for example through the fact that decision-making times among our customers and potential customers have become longer. We are still managing to maintain our commercial occupancy rate in Gothenburg at 94 percent, which is in line with our goal. I am very happy about this!

The implementation of the CSRD

Our work on preparing ourselves for the CSRD (Corporate Sustainability Reporting Directive) is continuing. An external CSRD expert has held training for both Group Management and the Board. We have also carried out our first double materiality assessment, which the Board has adopted, and have started the implementation. This work has involved many employees in the company, even major owners and banks, which will ensure good anchoring in the organization and a qualitative materiality process. There is a lot of work left to do, but we have made good progress and this feels reassuring as both

the CSRD and the EU's Taxonomy Regulation will be mandatory for us in financial year 2025.

Brighter times

Inflation is at a low level and interest rates are continuing to fall. The bottom line is that we are heading towards better times from the challenges that we have faced with the coronavirus and inflation and so forth. I believe we will see a further improvement in the situation during the fall and that it will be both interesting and fun to see how things develop. Together with all our dedicated employees, I look forward to new projects and new opportunities!

HANS WALLENSTAM, CEO

Consolidated income statement

SEK million	Note	2024 Jan-Jun	2023 Jan-Jun	2024 Apr-Jun	2023 Apr-Jun	2023/24 Jul-Jun	2023 Jan-Dec
Rental income	1	1,457	1,339	737	679	2,848	2,730
Other income	2	142	179	55	66	584	621
Total revenue		1,598	1,518	792	745	3,431	3,351
Operating expenses investment properties	1	-347	-367	-163	-170	-711	-730
Central management and administration	1	-166	-164	-85	-86	-355	-352
Participation in profits/losses of associated companies		-52	-1	0	-1	-53	-3
Financial income	1	4	2	2	1	10	7
Financial expenses	1	-431	-309	-217	-173	-848	-726
Other expenses	3	-117	-97	-53	-47	-436	-416
Profit/loss before changes in value and impairment losses		490	581	276	270	1,038	1,129
Change in value, investment properties		-21	-606	-6	-611	-202	-787
Change in value, financial instruments		92	-124	-146	123	-700	-916
Change in value, synthetic options		9	-29	5	-29	-29	-68
Reversal of impairment loss on wind turbines		-	59	-	59	-	59
Profit before tax		570	-119	129	-188	107	-582
Current tax		0	0	0	0	-2	-2
Deferred tax		-162	-51	-54	-30	23	134
Profit after tax		408	-170	74	-218	128	-450
DISTRIBUTION OF PROFIT AFTER TAX
Profit attributable to shareholders in the parent company		408	-170	74	-218	128	-450
Average number of outstanding shares, thousands			657,000 658,719 657,000 658,500				657,595 658,449
Profit after tax per share (SEK), dilution does not occur		0.6	-0.3	0.1	-0.3	0.2	-0.7

NOTE 1. INCOME FROM PROPERTY MANAGEMENT

SEK million Rental income Operating expenses investment properties Net operating income, properties	Jan-Jun 1,457 -347 1,110	Jan-Jun 1,339 -367 972	Apr-Jun 737 -163 574	Apr-Jun 679 -170	Jul-Jun 2,848 -711	Jan-Dec 2,730 -730
				510	2,137	1,999
Management costs and administrative expenses investment properties	-152	-151	-82	-80	-294	-293
Net financial items investment properties	-394	-289	-199	-163	-773	-668
Income från property management	563	532	294	267	1,071	1,039
Surplus ratio, %	76.2	72.6	77.9	75.0	75.0	73.2
Distribution of the properties' net operating income,	2024	2023	2024	2023
SEK million	Jan-Jun	Jan-Jun	Apr-Jun	Apr-Jun
Comparable holdings	1,014	939	528	493
New construction, larger added projects	97	28	47	15
Transactions	-	5	-	2
Net operating income, investment properties	1,110	972	574	510

Other comprehensive income corresponds to Profit after tax.

Comments on the consolidated income statement

APRIL 1–JUNE 30

Rental income for the second quarter amounted to SEK 737 million (679), an increase of almost 9 percent or SEK 58 million, of which SEK 26 million came from increases in comparable holdings. Newly constructed properties and completed larger projects added SEK 36 million comparatively and divestments reduced rental income by SEK 3 million.

Operating expenses amounted to SEK 163 million (170), a decrease of SEK 7 million. The largest difference came from significantly lower electricity prices in 2024, which were 37 percent lower compared with 2023. Net operating income increased by 13 percent and amounted to SEK 574 million (510), which corresponds to a surplus ratio in the quarter of 77.9 percent (75.0).

Net financial items investment properties amounted to SEK -199 million (-163). The average interest rate during the quarter amounted to 3.26 percent (2.84). The average interest rate on closing day was 3.17 percent, which can be compared to 3.27 percent on closing day in the previous quarter. Income from property management was 10 percent higher compared to the same quarter last year and amounted to SEK 294 million (267).

No changes in relation to yield requirements have been made during the quarter. Changes in value of properties amounted to SEK -6 million (-611).

JANUARY 1–JUNE 30

Income from property management amounted to SEK 563 million (532). Profit after tax for the period amounted to SEK 408 million (-170), which corresponds to earnings per share of SEK 0.6 (-0.3).

Rental income

Rental income has increased by SEK 118 million, 9 percent, compared to the same quarter of the previous year and amounted to SEK 1,457 million (1,339). Most of the increase, SEK 77 million, came from properties added mainly through new construction. Divestments reduced rental income by SEK 8 million. Comparable holdings increased by SEK 49 million primarily due to rent increases from indexations and rent negotiations. Wallenstam's revenue is evenly distributed between residential properties and commercial premises, where there is a slight preponderance of residential.

Agreed adjustments for commercial premises have resulted in average increases of 6 percent and apply from January 1. This year's rent negotiations for residential properties have been completed. For the Group, the agreed rent negotiations correspond to an average rent increase for residential of approximately 4.5 percent.

Operating expenses and net operating income

Seasonal effects at Wallenstam consist mainly of variable operating expenses, which are usually highest during quarters one and four when expenses for heating and property maintenance are generally higher.

Operating expenses for the period amounted to SEK 347 million (367). The largest difference consists of lower electricity expenses, which were 44 percent or SEK 44 million lower in comparable holdings compared to the same quarter last year when the electricity prices were comparatively very high, particularly in early 2023.

RENTAL INCOME AND INCOME FROM PROPERTY MANAGEMENT

NET OPERATING INCOME AND SURPLUS RATIO

*Latest rolling twelve-month period

However, rates and charges for water and sanitation and cleaning, are higher. Weather-related expenses were SEK 4 million higher during the period compared to the same period in the previous year.

Net operating income increased by SEK 138 million. The surplus ratio amounted to 76.2 percent (72.6).

Central management and administration

Central management and administration amounted to SEK 166 million (164), which mostly related to property management of SEK 152 million (151).

Participation in profits/losses of associated companies

Participation in profits/losses of associated companies consist of participations in profits/losses and value adjustments, and totaled SEK -52 million (-1), of which impairment losses amounted to SEK -51 million (-).

Financial income and expenses

Financial income amounted to SEK 4 million (2) and financial expenses totaled SEK -431 million (-309). Net financial items are distributed among investment properties in operation SEK -394 million (-289), expensed project-related interest SEK -13 million (-) and other SEK -20 million (-18), which mainly related to wind power and financial investments. Capitalized interest amounted to SEK 59 million (69).

The average debt was SEK 0.8 billion higher than year-end. The average interest rate for the period was 3.26 percent, compared to 2.61 percent in the same period last year. The Riksbank's cut of its policy rate in May 2024 has affected the average interest rate, which at the end of the period was lower compared to the previous quarter.

Other income and other expenses

Other income and other expenses mainly includes the Group's profit from electricity generation from our wind turbines.

Other income amounted to SEK 142 million (179) and other expenses totaled SEK -117 million (-97), see Note 2 and 3. The decrease in income was mainly due to a much lower electricity price compared to the same period last year when the electricity price was comparatively high. Since the Group is a net producer of electricity, the lower income is also offset by lower electricity costs within operating expenses for our investment properties. Electricity generated has increased during the first half of 2024 and amounted to 153 GWh (140).

Changes in value, investment properties

The change in value during the period amounted to SEK -21 million (-606).

The average yield requirements on closing day, which refer to the properties owned on each closing day, were unchanged compared to the previous quarter and amounted to 4.6 percent for the commercial holdings and to 3.6 percent for residential properties in operation.

Change in value, financial instruments

The change in value of financial instruments includes changes in value of interest rate derivatives and holdings of listed and unlisted shares that constitute financial investments.

The value of interest rate derivatives developed positively during the period, SEK 84 million (-87), as a result of rising interest rate levels. On closing day, the 10-year swap rate amounted to 2.58 percent, compared to 2.34 percent at the start of the year.

Change in value synthetic options

Change in value synthetic options amounted to SEK 9 million (-29). The change was positive due to the negative development of the share price. The number of outstanding options on closing day amounted to 5,895,000.

Tax

Recognized tax for the period amounted to SEK -162 million (-51) net, of which SEK -162 million (-51) was deferred tax and SEK 0 million (0) was current tax.

SEK million	2024 Jan-Jun	2023 Jan-Jun	2024 Apr-Jun	2023 Apr-Jun	2023/24 Jul-Jun	2023 Jan-Dec
Revenue, development property sales	47	23	26	14	372	348
Revenue, electricity generation	92	155	29	51	195	258
Other income	2	1	0	0	16	15
Other income	142	179	55	66	584	621

NOTE 2. OTHER INCOME NOTE 3. OTHER EXPENSES

SEK million	2024 Jan-Jun	2023 Jan-Jun	2024 Apr-Jun	2023 Apr-Jun	2023/24 Jul-Jun	2023 Jan-Dec
Expenses, development property sales	-33	-13	-16	-6	-271	-251
Expenses, electricity generation	-36	-38	-15	-18	-70	-72
Depreciation wind turbines	-47	-44	-23	-22	-93	-91
Other expenses	-1	-1	0	-1	-2	-2
Other expenses	-117	-97	-53	-47	-436	-416

Consolidated balance sheet, condensed

SEK million	Note	Jun 30, 2024	Jun 30, 2023	Dec 31, 2023
ASSETS
NON-CURRENT ASSETS
Investment properties	4	64,208	62,671	63,090
Site leasehold rights		587	505	534
Wind turbines		939	1,032	985
Land leases		9	9	9
Participations in associated companies		267	282	285
Financial assets		238	252	276
Financial derivative instruments		1,094	1,809	1,018
Other non-current assets		91	99	96
Total non-current assets		67,433	66,658	66,293
CURRENT ASSETS
Development properties		74	269	77
Other current assets		467	307	421
Cash and cash equivalents		218	425	50
Total current assets		759	1,001	548
Total assets		68,192	67,659	66,841

SEK million	Jun 30, 2024	Jun 30, 2023	Dec 31, 2023
EQUITY AND LIABILITIES
EQUITY
Equity	30,743	31,045	30,500
Total equity	30,743	31,045	30,500
NON-CURRENT LIABILITIES
Deferred tax liability	5,992	6,008	5,830
Provisions	84	81	94
Interest-bearing liabilities	8,761	5,298	4,058
Financial derivative instruments	6	22	18
Lease liability	596	514	543
Other non-current liabilities	15	14	16
Total non-current liabilities	15,454	11,937	10,559
CURRENT LIABILITIES
Interest-bearing liabilities	21,262	23,960	25,017
Financial derivative instruments	4	-	0
Lease liability	1	1	1
Current tax liability	0	-	2
Other current liabilities	728	717	762
Total current liabilities	21,995	24,677	25,782
Total equity and liabilities	68,192	67,659	66,841

NOTE 4. INVESTMENT PROPERTIES

SEK million	Jun 30, 2024	Jun 30, 2023	Dec 31, 2023
Investment properties in operation	59,303	57,620	58,103
Projects in progress, rental apartments	2,505	2,058	2,014
Land and projects for future new construction	2,401	2,993	2,973
Total investment properties	64,208	62,671	63,090

Comments on the consolidated balance sheet

CHANGE DURING THE YEAR, INVESTMENT PROPERTIES

	Book value, SEK million
Investment properties, January 1, 2024	63,090
+ Acquisitions	144
+ Construction	1,139
- Sales	-121
- Unrealized change in value	-44
Investment properties, June 30, 2024 64,208

Wind power

On closing day, the consolidated book value of wind turbines amounted to SEK 939 million (985). Estimated value in use of land leases, based on minimum rents, amounted on closing day to SEK 9 million (9). Depreciation for the period amounted to SEK 47 million (44).

Financial derivative instruments

Financial derivative instruments, which consist of interest rate derivatives amounted to a net receivable of SEK 1,085 million (1,000) on closing day.

Deferred tax

A net deferred tax liability of SEK 5,992 million (5,830) is recognized in the balance sheet, which consists of a deferred tax asset of SEK 1,072 million (1,088) and a deferred tax liability of SEK 7,064 million (6,918) where SEK 6,541 million (6,430) is property-related and SEK 523 million (488) relates to derivative instruments, site leasehold rights and wind turbines.

Equity and net asset value

OTHER INFORMATION | KEY RATIOS – MULTI-YEAR SUMMARY | KEY RATIOS – QUARTERLY OVERVIEW | DEFINITIONS | THIS IS WALLENSTAM | CALENDAR & CONTACT

Shareholders' equity amounted to SEK 30,743 million (30,500), which is equivalent to SEK 46.80 per share (46.40). The equity/ assets ratio was 45 percent (46).

The net asset value has increased by SEK 0.50 per share during the first half of 2024 and amounted to SEK 56.70 (56.20). During the second quarter, a dividend of SEK 0.25 per share was disbursed.

Interest-bearing liabilities

On closing day, total interest-bearing liabilities amounted to SEK 30,023 million (29,075). The average fixed interest term is 35 months (40). Of the loan portfolio, 53 percent (57) of the loans have fixed interest terms longer than one year.

Municipality, Skåne.

Y I EL D R EQ U I R EM EN T

4.6 percent 3.6 percent 46 percent

Y I EL D R EQ U I R EM EN T

LOAN-TO-VALUE RATIO

Södervidinge, Kävlinge

Investment properties

Development during the period

During the second quarter, Wallenstam has started the construction of 408 apartments in Årstaberg, Stockholm. New construction projects in progress involve 1,238 apartments.

Investments during the period totaled SEK 1,283 million (1,394), of which SEK 1,282 million (1,340) in investment properties and SEK 1 million (55) in development properties. The total value of rental apartment and development projects in progress, including land and projects for future new construction, amounted to SEK 5.0 billion (5.1) on closing day. The right of use value for land granted with site leasehold rights has been estimated at SEK 587 million (534).

Development properties

The book value of Development properties amounted to SEK 74 million (77) at the end of the period and includes Pixbo Sjöterrass in Mölnlycke as well as Söra radhus in Österåker. As of June 30, two of the terraced houses in Mölnlycke and eight of the terraced houses in Österåker have been taken into possession.

Valuation

INVESTMENT PROPERTIES

Wallenstam measures all of its investment properties internally at fair value on a quarterly basis. As an active actor in the property market, with long experience, we enjoy good market and property intelligence, which provides us with a firm basis for performing internal valuations of our property holdings. However, we must emphasize that the real value of properties only becomes a reality when they are sold, and therefore a valuation is always an estimation.

In our assessments of property values, we use different yield requirements for different properties. The yield requirements reflect market conditions and differ based on where the property is located and what type of property it is (housing or offices, etc.).

A valuation is calculated based on each property's net operating income including site leasehold rent, set in relation to the yield requirement for each property.

As our properties are valued separately, no consideration is given to the portfolio premium that may exist in the property market.

New constructions of rental properties are measured at fair value, which is determined as cost plus the estimated surplus on the completion date in relation to the degree of completion of the construction. This is in turn based on expenses incurred. The surplus value on new construction is gradually recognized during the construction period. In view of the increased uncertainty that exists in the market, no gradual value growth is currently recognized for new construction.

Land rights and building rights for future new construction are measured at market value.

DEVELOPMENT PROPERTIES

Development properties are properties that we intend to construct in order to divest on completion, for example co-op apartment properties. Development properties are recognized at the lower of cost (investments incurred) and the estimated net realizable value. The profit/loss is recognized when the property or apartment is completed and handed over to the buyer.

NEW CONSTRUCTION IN PROGRESS, JUNE 30, 2024

Project	No. of apts.		Sq m**
STOCKHOLM
Nacka Grace	169	Q3 2024	13,000
Älta Torg Kv. 1, Nacka	191	Q4 2024	21,000
Ädellövet, Farsta	172	2025	8,500
Årstaberg	408***	2026	28,500
GOTHENBURG
Kallebäcks Terrasser Kv. 6	298	2025	17,000
Total apartments in projects, ongoing	1,238		88,000

• * Refers to estimated start of occupation. Occupation will occur gradually, often over several quarters.
• ** Number of sq m includes garage, and is rounded off to the nearest 500.
• *** Started during quarter 2.

CHANGE, CONSTRUCTION IN PROGRESS, APARTMENTS

June 30, 2024	1,238
+ Started	+408
April 1, 2024	830
	No. of apts.

APARTMENTS, CONSTRUCTION IN PROGRESS

FULLY COMPLETED NEW CONSTRUCTION Name of property Address Year of construction Residential sq m Office sq m Retail/ Restaurant/ Cinema sq m Industry/ warehousing sq m Education/ Care sq m Garage sq m Other sq m Total sq m No. of  apts. GOTHENBURG Kallebäck 18:13 (Project: Kallebäcks Terrasser Kv. 5, Närheten) Kallebäcks torggata 12-30 / Skummjölksgatan 7-11 2023 9,827 - 599 - - 1,442 - 11,868 182 Lettable area, sq m Residential sq m Office sq m Retail/ Restaurant/ Cinema sq m Industry/ warehousing sq m Education/ Care sq m Garage sq m Other sq m Total Distribtion, place No. of  apts. Stockholm 344,628 28,731 12,895 8,362 5,453 60,816 2,496 463,381 33% 5,813 Uppsala 30,004 63 788 0 724 2,584 0 34,163 2% 627 Gothenburg 340,417 230,347 94,310 92,026 48,636 100,673 7,143 913,552 65% 5,735 Total 715,049 259,141 107,993 100,388 54,813 164,073 9,639 1,411,096 100% 12,175 Distribution by type of premises 51% 18% 8% 7% 4% 11% 1% 100% PROPERTY HOLDING STRUCTURE AS OF JUNE 30, 2024

Name of property	Address	struction	sq m	sq m	Cinema sq m	sing sq m	Care sq m	sq m	sq m	sq m	apts.
GOTHENBURG
Kallebäck 18:13 (Project: Kallebäcks Terrasser Kv. 5, Närheten)	Kallebäcks torggata 12-30 / Skummjölksgatan 7-11	2023	9,827	-	599	-	-	1,442	-	11,868	182
Stampen 5:6* (Extension)	Stampgatan 12-18/Pol hemsplatsen 1	2023	-	1,559	-	17	-	-	-	1,576	0
UPPSALA Kåbo 78:1 (Project: Kompositören)	Sidenbigatan 56 / Honungs gatan 21	2023	8,435	-	404	-	192	-	-	9,031	185
Total			18,262	1,559	1,003	17	192	1,442	-	22,475	367
* Extension existing property

PROPERTY ACQUISITIONS

		Year of	Resi		Retail/	Industry/
		con	dential	Office	Restaurant/	Education/ warehou	Garage	Other	Total	No. of
Name of property	Address	struction	sq m	sq m	Cinema sq m	sing sq m Care sq m	sq m	sq m	sq m	apts.

STOCKHOLM Nacka Älta 69:4*

Total

* Land

PROPERTY SALES

Name of property	Address	struction	sq m	sq m	Cinema sq m	Care sq m sing sq m	sq m	sq m	sq m	apts.
		con	dential	Office	Restaurant/	Education/ warehou	Garage	Other	Total	No. of
		Year of	Resi		Retail/	Industry/

STOCKHOLM

Sundbyberg Freden Större 15, 21 and 22*

Total

* Land

DISTRIBUTION, MARKET VALUE INVESTMENT PROPERTIES IN OPERATION

ACQUISITION, CONSTRUCTION AND SALES OF INVESTMENT PROPERTIES

Financing

Equity

Shareholders' equity amounted to SEK 30,743 million (30,500), which is equivalent to SEK 46.80 per share (46.40). The equity/ assets ratio was 45 percent (46).

Interest-bearing liabilities

Wallenstam has 95 percent of its financing in the form of traditional loans from Swedish banks and the European Investment Bank. The remainder of the financing consists of commercial paper and bond loans.

On closing day, total interest-bearing liabilities amounted to SEK 30,023 million (29,075). During the first half of 2024, new bonds have been issued totaling SEK 1,000 million (-), of which SEK 300 million (-) was issued in the quarter. Of the liability, outstanding bond loans amounted to SEK 1,000 million (334), and the book volume of commercial paper, with a framework amount of SEK 4,000 million, amounted to SEK 617 million (373). Total interest-bearing liabilities consist of SEK 12.2 billion (10.8) green financing, of which SEK 11.2 billion (10.5) of green loans and SEK 1.0 billion (0.3) of green bonds.

All the bond loans of SEK 1,000 million (334) are green bonds according to the terms of Wallenstam's green framework and were issued within Wallenstam's MTN program (Medium Term Notes). The bond loans are listed on Nasdaq Stockholm.

The average fixed interest term is 35 months (40). Of the loan portfolio, 53 percent (57) of the loans have fixed interest terms longer than one year. The average interest rate on closing day was 3.17 percent, which for the first time since year end 2021 was lower than the previous quarter, when it was 3.27 percent.

Financing of the loan portfolio is mainly secured by mortgage deeds for properties. The bond loans, commercial paper and the loan from the EIB are unsecured. The commercial paper program has underlying credit commitments in the form of overdraft facilities. Covenants are issued for the loan from the EIB for the loan to be unsecured.

Lease liability

The recognized lease liability corresponds to the rights of use for land leases and site leasehold rights. The liability on closing day totaled SEK 596 million (544).

Derivative instruments

Wallenstam's financial derivative instruments consist of interest rate derivatives. On closing day, Wallenstam had a net receivable in respect of derivative instruments of SEK 1,085 million compared to SEK 1,000 million as of December 31, 2023.

The total volume of outstanding interest rate derivatives, where Wallenstam pays fixed interest, amounts to SEK 16.0 billion (16.0).

Interest rate derivatives are used to obtain a desired interest maturity profile in a flexible, cost-efficient way. They are measured through discounting future cash flows at present value. Arising deficit or surplus values for interest rate derivatives, which reflect how the Group's hedged interest rates relate to the market rate of interest on closing day, are recognized in the balance sheet and as changes in value, financial instruments in the income statement.

Available liquid assets

Available liquid assets, including available bank overdraft facilities, amounted to SEK 1,583 million (1,285), of which SEK 625 million is reserved for back up for issued outstanding commercial paper. Approved overdraft facilities amounted to SEK 1,365 million (1,325), where no portion (90) was used on closing day.

FIXED TERMS, AVERAGE INTEREST RATES

	Jun 30, 2024		Dec 31, 2023
	Amount,	Average	Amount,	Average
Year	SEK million	interest rate, %	SEK million	interest rate, %
2024	13,524	5.70 *	12,575	6.06 *
2025	500	0.52	500	0.52
2026	2,000	0.78	2,000	0.78
2027	2,000	1.05	2,000	1.05
2028	2,000	1.16	2,000	1.16
2029	2,000	0.93	2,000	0.93
2030	2,000	0.95	2,000	0.95
2031	2,000	0.67	2,000	0.67
2032	2,000	1.31	2,000	1.31
2033	2,000	2.02	2,000	2.02
Total	30,023	3.17	29,075	3.24

*Includes effects of swap agreements.

AVAILABLE LIQUIDITY

Customer and market

The cities in which we do business are characterized by growth and heavy demand for housing and commercial premises. We build mainly rental apartments, but also cooperative apartments, when there is a need for mixed forms of tenure. Our flexible business model, where co-op apartment sales do not start until the project is approaching completion, makes it possible to convert a co-op apartment project into a rental apartment project if demand for co-op apartments is uncertain.

The residential property holdings are fully let. Only a minor proportion of our rental apartments become available for rent due to relocation, and demand for finished, newly constructed rental apartments is high.

The average agreed rent increase for residential properties for the Group amounts to approximately 4.5 percent in total for 2024. We have also agreed on the rent increases for 2025, which are on a par with 2024.

We see that demand for commercial floor space in central Gothenburg is still stable. Some sluggishness in the market can be seen in the form of, for instance longer decision-making times among existing and potential customers. The commercial properties are mainly situated in central locations in Gothenburg, with offices as the largest type of commercial premises. The surrender rate, which reflects how large a proportion of the cancellable leases are extended, is unchanged from the previous quarter and amounted to 90 percent (87). The occupancy rate for commercial in terms of lettable area amounted to 92 percent on closing day. In Gothenburg, where the majority of the commercial floor space is located, the occupancy rate is 94 percent.

THE TEN LARGEST COMMERCIAL TENANTS BY FLOOR SPACE

Tenant	Floor space, sq m
City of Gothenburg	20,621
Essity Hygiene and Health AB	15,639
Convendum AB	14,757
Filmstaden AB	14,508
The National Archives of Sweden	11,000
Västra Götaland County Council	10,832
Fridaskolorna AB	8,088
Ica Fastigheter AB	6,906
Dagab Inköp & Logistik AB	6,308
Frisk Service i Göteborg AB	5,874
Total	114,533

Our total commercial floor space is approximately 530,000 sq m.

DISTRIBUTION, RENTAL VALUE INVESTMENT PROPERTIES IN OPERATION

Consolidated statement of changes in equity

			2024					2023
		— Equity attributable to parent company shareholders —				— Equity attributable to parent company shareholders —
SEK million	Share capital	Other capital contributed	Other reserves	Profit brought forward	Total equity	Share capital	Other capital contributed	Other reserves	Profit brought forward	Total equity
Opening equity, January 1	165	359	-3	29,979	30,500	165	359	-3	30,911	31,432
Profit after tax	-	-	-	408	408	-	-	-	-170	-170
TRANSACTIONS WITH SHAREHOLDERS
Dividend				-164	-164	-	-	-	-198	-198
Repurchase of own shares	-	-	-	-	-	-	-	-	-19	-19
Closing equity, June 30	165	359	-3	30,222	30,743	165	359	-3	30,524	31,045

Segments report

	Jun 30, 2024							Jun 30, 2023
				of which,					of which,
		Net operating	Investment	investments	Number sq m		Net operating	Investment	investments	Number sq m
SEK million	Rental income	income	properties	during the year	(thousands)	Rental income	income	properties	during the year	(thousands)
Gothenburg business area	989	775	41,873	556	914	907	665	40,594	887	895
Stockholm business area	481	348	22,312	725	498	445	320	22,076	453	491
Other	0	0	23	1	0	0	0	-	-	-
Elimination	-13	-13	-	-	-	-13	-13	-	-	-
Total	1,457	1,110	64,208	1,282	1,411	1,339	972	62,671	1,340	1,386

Consolidated statement of cash flows, condensed

SEK million Profit before changes in value and impairment losses* Adjustment for items not included in cash flow	2024 Jan-Jun 490 89 -1	2023 Jan-Jun 581	2024 Apr-Jun 276	2023 Apr-Jun	2023/24 Jul-Jun	2023 Jan-Dec
				270	1,038	1,129
		41	16	17	53	5
Change provisions		-6	-1	-6	-2	-7
Taxes paid	0	-5	0	-5	0	-5
Cash flow before change in working capital	578	611	291	276	1,089	1,122
Change in working capital	18	172	-108	-26	18	172
Cash flow from operating activities	596	783	183	250	1,107	1,294
INVESTMENTS/DIVESTMENTS
Investment in properties and individual co-op apartments	-1,240	-1,394	-716	-741	-2,284	-2,438
Investments in intangible assets and property, plant and equipment	-4	-6	-3	-2	-9	-11
Investments in financial assets	-	-16	-	-16	-59	-75
Divestment of financial assets	-	-	-	-	6	6
Amortization of financial assets	6	-	6	-	6	-
Investments in associated companies	-34	-28	-34	-28	-39	-33
Divestment of properties, development properties and property, plant and equipment	60	148	42	145	729	817
Cash flow from investing activities	-1,212	-1,296	-704	-642	-1,650	-1,735
FINANCING
Raised interest-bearing liabilities	15,499	13,723	8,607	8,076	28,896	27,120
Amortization of interest-bearing liabilities	-14,460	-13,532	-8,245	-7,278	-27,346	-26,418
Net change in overdraft facilities	-90	784	-	174	-784	90
Dividends paid	-164	-198	-164	-198	-362	-395
Repurchase of own shares	-	-19	-	-	-68	-87
Cash flow from financing activities	784	757	197	775	336	309
Changes to liquid assets
Cash and cash equivalents at beginning of the period	50	181	542	42	425	181
Cash flow for the period	168	244	-325	382	-206	-131
Cash and cash equivalents at the end of the period	218	425	218	425	218	50
Unutilized overdraft facilities at the end of the period	1,365	1,128	1,365	1,128	1,365	1,235
Available liquid assets	1,583	1,554	1,583	1,554	1,583	1,285

^* Includes interest paid and received, including gross flows from interest rate swap contracts, of SEK -456 million (-367) and SEK 4 million (2) respectively, of which SEK 59 million (69 ) was capitalized as a non-current asset.

Wallenstam's sustainability work

Climate targets 2023–2030

Wallenstam's climate targets in scope 1 and 2 are adopted and validated by the climate action partnership The Science Based Targets initiative (SBTi). In scope 3, a voluntary target has been defined, according to the Science Based Targets initiative's methodology. Wallenstam reports reduced carbon dioxide emissions in all targeted areas, which is a result of structured and dedicated sustainability work in the business.

Target: –50% Outcome 2023: –36%

Target: –50% Outcome 2023: –24%

SCOPE 3 Other indirect emissions Purchasing of construction materials

Target: –55% Outcome 2023: –19%

Implementation of the CSRD

In 2023, Wallenstam started the work on preparing for upcoming reporting requirements according to the CSRD (Corporate Sustainability Reporting Directive). Both the CSRD and the EU's Taxonomy Regulation will become mandatory for the company for the financial year 2025. Since 2022, Wallenstam has voluntarily chosen to report how large a share of the assets are defined as sustainable under the EU taxonomy. As part of the CSRD preparations, Wallenstam's Board and Management have received training from an external CSRD expert.

During 2024, this work has continued and key people from Wallenstam have carried out a first materiality analysis based on a double materiality assessment. The analysis was performed to describe what sustainability risks and opportunities are material for the company and was carried out both from a human and environmental perspective and from a financial perspective. The materiality analysis has subsequently been validated by Wallenstam's Management and Board. Stakeholders in the form of external major owner and lenders have also seen a presentation of it. One area that stakeholders pay particular attention to is that social issues with customers' security and wellbeing in focus, are highly valued by Wallenstam.

Circular and sustainable construction – REbygg

During the quarter, Wallenstam has joined the REbygg reuse hub. REbygg focuses on the reuse of construction materials for adaptations of premises. This participation is important to contribute to the circular economy, and for the construction sector to collectively reduce its climate impact.

Social sustainability

During the quarter, courtyard meetings were held in the Vita Björn and Dahlströmsgatan areas in Majorna in Gothenburg, with the aim of increasing collaboration and security for our tenants. Personnel from several areas within Wallenstam participated in these meetings, including staff from the security department who attended together with the police to highlight the issue of security. The Gothenburg City Mission was also onsite to receive items that our tenants wished to donate to those in need.

Biological diversity

Biological diversity and wellbeing for both tenants and visitors is important for Wallenstam. In Umami, Sundbyberg, 1,130 carefully selected trees and seedlings have therefore been planted. This initiative was carried out together with the company Terraplants AB. Terraplants works with Svensk Sigill, which means that the plants are grown in Sweden and in a way that benefits biological diversity.

The Wallenstam share

The Wallenstam B share is listed on Nasdaq Stockholm, Large Cap. During 2024, Wallenstam's share price has decreased by 8.0 percent. The property index OMX Stockholm Real Estate PI fell by 0.4 percent and the OMX Stockholm PI index rose by 8.0 percent during the same period.

At the end of the period, the Wallenstam share price was SEK 50.35 compared to SEK 54.70 at year-end 2023. The market capitalization was SEK 33,231 million (36,102) based on the total number of registered A and B shares. Equity per share amounted to SEK 46.80 (46.40).

Buyback

Wallenstam has a mandate from the Annual General Meeting to repurchase shares. No shares were repurchased during the first half of 2024. On closing day, the company held a total of 3,000,000 repurchased shares, acquired at an average price of SEK 43.28 per share, including brokerage.

Dividend

The AGM resolved on a dividend of SEK 0.50 per share (0.60) for the financial year 2023, spread over two payment dates of SEK 0.25 each per share.

In May, SEK 164 million was disbursed to the shareholders. The next payment will take place in November. In 2023, a total of SEK 395 million was disbursed.

Turnover

During the period, the Wallenstam share had an average daily turnover on Nasdaq Stockholm of about SEK 28.5 million (27.3).

SHAREHOLDINGS, JUNE 30, 2024

	A shares	B shares	Equity, %	Votes, %
Hans Wallenstam and family, and company	69,000,000	98,808,300	25.43	61.72
AMF - Insurance and funds		75,459,069	11.43	5.90
Henric and Ulrika Wiman		23,955,504	3.63	1.87
Agneta Wallenstam		21,368,000	3.24	1.67
Anna-Carin B Wallenstam and Anders Berntsson		21,300,000	3.23	1.67
David Wallenstam		17,040,276	2.58	1.33
Christian Wallenstam		16,000,000	2.42	1.25
Swedbank Robur Fonder		15,026,091	2.28	1.18
Monica and Jonas Brandström		13,468,604	2.04	1.05
Bengt Norman		12,440,000	1.88	0.97
Other owners		273,134,156	41.38	21.37
Total number of shares	69,000,000	588,000,000
Repurchased own shares*		3,000,000	0.45
Total registered shares		660,000,000	100.00	100.00
Total outstanding shares		657,000,000

The proportion of institutional ownership amounted to around 21 percent of equity and around 11 percent of the votes.

Foreign ownership amounted to around 9 percent of equity and around 5 percent of the votes.

SHARE PRICE TREND Q3 2019–Q2 2024

OMX Stockholm Real Estate PI

^* Refers to repurchased shares up to closing day. Repurchased shares do not carry voting rights. Source: Euroclear Sweden AB

Parent Company

The parent company's operations are focused on managing all of the Group's companies. In addition, the parent company owns a small number of properties.

Total revenue during the period amounted to SEK 302 million (303), of which rental income amounted to SEK 79 million (73).

The result was impacted by the item changes in value of derivative instruments, SEK 84 million (-87). Profit after tax amounted to SEK 192 million (5).

Investments in intangible assets and property, plant and equipment during the period amounted to SEK 5 million (24). Parent company external loans amounted to SEK 12,230 million (11,060) on closing day.

INCOME STATEMENT, PARENT COMPANY

	2024	2023	2023
SEK million	Jan-Jun	Jan-Jun	Jan-Dec
Remuneration, management and project management	214	221	319
Rental income	79	73	146
Revenue, sales guarantees of origin	7	7	11
Other revenue	2	1	4
Total revenue	302	303	481
Management costs and administrative expenses	-212	-213	-423
Operating expenses	-19	-23	-46
Depreciation and impairment losses properties	-19	-18	-36
Expenses, sales guarantees of origin	-8	-9	-15
Change in value, synthetic options scheme	9	-29	-68
Other expenses	-1	-2	-4
Total expenses	-248	-293	-591
Operating income	54	9	-110
Profit/loss from participations in Group companies	0	17	47
Interest income and similar profit/loss items	693	532	830
Interest expenses and similar profit/loss items	-590	-448	-634
Changes in value, derivative instruments	84	-87	-874
Net financial items	187	13	-630
Profit/loss after financial items	241	22	-741
Commissionaire' contributions	-	-	1,072
Additional depreciation	-	-	-22
Tax on net profit/loss	-49	-18	115
Profit/loss after tax	192	5	424

Other comprehensive income corresponds to Profit/loss after tax.

CONDENSED BALANCE SHEET, PARENT COMPANY

SEK million	Jun 30, 2024	Jun 30, 2023	Dec 31, 2023
Assets
Properties	1,354	1,383	1,372
Participations in Group companies	12,767	6,079	4,067
Financial derivative instruments	1,094	1,809	1,018
Receivables from Group companies	22,893	26,833	34,490
Other assets	227	110	284
Cash and cash equivalents	217	425	49
Total assets	38,553	36,639	41,280
Equity and liabilities
Equity	14,421	14,238	14,393
Untaxed reserves	27	5	27
Provisions	64	46	73
Interest-bearing external liabilities	12,230	11,664	11,060
Liabilities to Group companies	11,668	10,571	15,572
Financial derivative instruments	10	22	18
Other liabilities
	134	93	138

Other information

RISK MANAGEMENT

Wallenstam's risks, and how we manage them, are presented in the 2023 Annual Report on pages 22–24. No significant changes in the management of these risks have occurred during 2024.

SENSITIVITY ANALYSIS

As of June 30, 2024, the estimated market value of the properties amounted to around SEK 64 billion. A change in value of plus/minus 10 percent is thus equivalent to about plus/minus SEK 6.4 billion. A general change of plus/minus 0.25 percentage points in property yield requirements is equivalent to about SEK -3.7 billion to SEK +4.2 billion, while a general change in revenue of 5 percent is equivalent to about plus/minus SEK 3.7 billion.

A change in the market interest rate of plus/minus 50 points is equivalent to about plus/minus SEK 68 million in interest expenses.

TRANSACTIONS WITH RELATED PARTIES

Wallenstam's related parties consist chiefly of Group companies. Board members, company management and their families and the companies they control are also related parties. Transactions with related parties mainly consist of administrative fees and the renting of premises between Group companies. Individuals related to Board members and Group Management rent apartments and premises. Insurance services are purchased from companies where a member of Wallenstam's Board of Directors is a board member, for a total equivalent to about SEK 5 million in net expenditure for the year. The CEO is a joint owner (50 percent) of Aranea Holding AB. Aranea is a tenant of Wallenstam with an annual rental value equivalent to SEK 0.9 million.

A member of Wallenstam's Board, through his own consulting company, sold consulting hours to Wallenstam for SEK 0.1 million.

The Convendum and Colive groups, where Wallenstam's Chairman

is a board member of each parent company, have an agreed rent for the year 2024 totaling SEK 52 million and SEK 13 million, respectively. In addition to the tenancy, there is an outstanding promissory note receivable of SEK 58 million in relation to the Convendum group. Companies in the Wallenstam Group have entered into a guarantee commitment for companies in the Colive group of SEK 4.3 million.

Ferroamp AB, where Wallenstam's Chairman is a board member, has an agreed rent for the year 2024 of SEK 5.3 million.

Wallenstam's involvement in environmental and social responsibility issues is described in more detail on pages 15–21 of the 2023 Annual Report. As part of its social responsibility work, the Wallenstam Group not only contributes financially to a number of organizations but also gives its time in the form of e.g. board work. As a result of such board positions, related party status arises in the case of the Rescue Mission in Gothenburg and Barn i Nöd (Swedish International Help for Children). During the year, the Rescue Mission in Gothenburg received contributions and discounts equivalent to SEK 3.5 million. The Rescue Mission in Gothenburg and Barn i Nöd rent premises and apartments from Wallenstam equivalent to annual rental income of SEK 8.0 million and SEK 0.1 million, respectively.

All transactions take place on market-related terms.

ACCOUNTING PRINCIPLES

This report was prepared in accordance with IAS 34. The accounting principles are unchanged compared to the 2023 Annual Report. The Parent Company's accounting principles comply with the Swedish Annual Accounts Act and the Swedish Corporate Reporting Board's recommendation RFR 2.

New and amended standards and principles that entered into force on January 1, 2024, or subsequently are not expected to have any material impact on the Wallenstam Group's financial statements.

ROUNDING OFF

As a result of rounding off, figures presented in this report do not, in some cases, sum up exactly to the total and percentages may differ in order for them to correspond to the actual numerical data.

ANNUAL GENERAL MEETING AND NOMINATION COMMITTEE

At Wallenstam's Annual General Meeting on April 25, 2024, the following resolutions were approved, among others:

• a dividend of SEK 0.50 per share, spread over two payment dates of SEK 0.25 each per share with record days April 29 and October 29, respectively.
• re-election of the Board members Lars-Åke Bokenberger (Chairman), Karin Mattson, Agneta Wallenstam, Mikael Söderlund and Rebecka Wallenstam.
• that the Nomination Committee ahead of the AGM shall be composed of Dick Brenner (Chairman), Lars-Åke Bokenberger, Anders Oscarsson and Hans Wallenstam.
• approval of the Board's remuneration report for the 2023 financial year and guidelines for remuneration to senior executives.
• a mandate for the Board of Directors to take decisions on acquisition and transfer of the company's own shares.

A complete report is available on www.wallenstam.se.

EVENTS AFTER THE END OF THE REPORTING PERIOD

No events of material importance for the company's position have occurred after the end of the reporting period.

Key ratios – multi-year summary

	Jun 30,	Mar 31,	Dec 31,	Sep 30,	Jun 30,	Mar 31,	Dec 31,	Sep 30,	Jun 30,
Accumulated during period	2024	2024	2023	2023	2023	2023	2022	2022	2022
PROPERTY-RELATED KEY RATIOS
Net operating income, properties, SEK million	1,110	535	1,999	1,518	972	462	1,888	1,440	942
Surplus ratio, property management, %	76.2	74.4	73.2	74.6	72.6	70.1	75.8	77.3	76.2
Income from property management, SEK million	563	270	1,039	828	532	265	1,252	993	650
Changes in value, investment properties, SEK million	-21	-15	-787	-793	-606	5	-2,608	385	383
Value of investment properties, SEK million	64,208	63,583	63,090	62,777	62,671	62,712	62,092	64,997	64,441
Area, sq m (thousand)	1,411	1,411	1,388	1,396	1,386	1,356	1,356	1,342	1,342
Occupancy rate – lettable area, %	96	97	97	96	96	96	97	97	97
FINANCIAL KEY RATIOS
Profit after tax, SEK million	408	333	-450	42	-170	48	1,103	2,904	2,150
Return on equity, %	0.4	-0.5	-1.4	-5.5	-3.8	-0.2	3.4	15.7	16.5
Return on total assets, %	1.4	0.9	0.2	-3.0	-2.1	-0.1	1.6	9.5	9.6
Interest coverage ratio, times (rolling 12 months)	2.2	2.3	2.6	2.8	3.3	4.0	4.6	5.5	6.0
Loan-to-value ratio, %	46	46	46	46	46	45	45	42	43
Average interest rate on closing day, %	3.17	3.27	3.24	3.14	2.98	2.61	2.21	1.84	1.43
Average fixed interest term, months	35	37	40	37	38	41	44	46	47
Equity/assets ratio, %	45	45	46	46	46	47	47	48	47
Equity, SEK million	30,743	30,833	30,500	31,257	31,045	31,461	31,432	33,474	32,720
Net asset value, SEK million	37,284	37,312	36,930	37,660	37,473	37,908	37,825	40,557	39,697
Market capitalization, SEK million	33,231	34,551	36,102	24,169	24,103	25,912	28,974	26,783	29,535
PER SHARE DATA
Profit after tax, SEK	0.6	0.5	-0.7	0.1	-0.3	0.1	1.7	4.4	3.3
P/E ratio, times	259	Neg.	Neg.	Neg.	Neg.	Neg.	26.3	5.4	5.9
Cash flow from operating activities, SEK	0.9	0.6	2.0	1.5	1.2	0.8	1.8	1.7	1.2
Equity, SEK	46.80	46.90	46.40	47.50	47.10	47.80	47.70	50.70	49.60
Net asset value per share, SEK	56.70	56.80	56.20	57.20	56.90	57.60	57.40	61.50	60.10
Share price, SEK	50.35	52.35	54.70	36.62	36.52	39.26	43.90	40.58	44.75
Repurchased shares at end of period, thousands	3,000	3,000	3,000	1,500	1,500	1,500	1,000	-	-
Shares outstanding, average, thousands	657,000	657,000	658,449	658,645	658,719	658,875	659,904	660,000	660,000
Shares outstanding at end of period, thousands	657,000	657,000	657,000	658,500	658,500	658,500	659,000	660,000	660,000

Key ratios – quarterly overview

	2024	2024	2023	2023	2023	2023	2022	2022	2022
	Apr-Jun	Jan-Mar	Oct-Dec	Jul-Sep	Apr-Jun	Jan-Mar	Oct-Dec	Jul-Sep	Apr-Jun
Rental income, SEK million	737	719	694	697	679	660	627	626	620
Net operating income, properties, SEK million	574	535	481	546	510	462	448	498	483
Surplus ratio, property management, %	77.9	74.4	69.4	78.3	75.0	70.1	71.4	79.5	77.9
Income from property management, SEK million	294	270	211	296	267	265	259	343	328
Interest coverage ratio, times	2.3	2.0	2.2	2.5	2.6	3.3	3.3	4.6	5.6
Earnings per share after tax, SEK	0.1	0.5	-0.7	0.3	-0.3	0.1	-2.7	1.1	1.4
Cash flow per share from operating activities, SEK	0.3	0.6	0.4	0.4	0.4	0.8	0.1	0.5	0.6
Equity per share, SEK	46.80	46.90	46.40	47.50	47.10	47.80	47.70	50.70	49.60
Net asset value per share, SEK	56.70	56.80	56.20	57.20	56.90	57.60	57.40	61.50	60.10
Share price, SEK	50.35	52.35	54.70	36.62	36.52	39.26	43.90	40.58	44.75

Report signatures

The Board and CEO certify that the interim report provides a fair view of the Parent Company's and Group's operations, financial position and results and describes the significant risks and uncertainties to which the Parent Company and Group Companies are exposed..

Gothenburg, July 8, 2024

Lars-Åke Bokenberger Chairman of the Board

Karin Mattsson Vice chairman of the Board

Agneta Wallenstam Board member

Mikael Söderlund Board member

Rebecka Wallenstam Board member

Hans Wallenstam CEO

Definitions

Share yield

The proposed dividend as a percentage of the share price at the end of the period.

Share total yield

The share price trend during the year including distributed dividend as a percentage of the share price at the start of the period.

Alternative performance measures (APM)

Wallenstam presents a number of financial measures that are outside IFRS definitions (Alternative performance measures, according to ESMA's guidelines) with the aim of enabling effective evaluation of the company's financial position and performance for investors and for the company's management. This means that these measures are not always comparable with measures used by other companies and shall therefore be considered as a complement to measures defined according to IFRS. Wallenstam applies these alternative key ratios consistently over time. The definitions describe how Wallenstam's key ratios are calculated. The key ratios are alternative performance measures according to ESMA guidelines unless otherwise stated.

The number of shares

The number of registered shares at any given time. Number of shares outstanding: the number of registered shares less repurchased own shares at any given time. Average number of shares: weighted average number of shares outstanding at any given time.

Return on equity*

Profit after tax on a rolling 12-month basis in relation to average equity.

Return on total assets*

Profit before tax with reversal of interest expenses for the latest rolling 12-month period in relation to average total assets.

Loan-to-value ratio

Interest-bearing liabilities and lease liability less cash and cash equivalents in relation to the Group's investments in properties, site leasehold rights, development properties, wind power and land leases at the end of the period.

Residential property

Property, which predominantly consists of residential space.

Market capitalization

Share price multiplied by the number of registered shares on the closing day.

Net operating income

Rental income less operating and maintenance expenses, and property tax.

Development property

A property that is constructed with the intention of being divested, either in its entirety or per share, upon completion.

Income from property management

Rental income from investment properties less operating expenses, management costs and administrative expenses and net financial items attributable to investment properties.

Average interest rate

Interest expenses for the period in relation to interest-bearing average debt.

Average yield requirement

Normalized net operating income in accordance with the valuation model in relation to the estimated market value of yielding investment properties.

Rental value**

Rental income and the estimated market rent for vacant space.

Comparable holdings

Refers to properties that were included in the holdings during the entire reporting period and during the entire comparative period. Properties that are acquired, sold or have been classified

For average values, add the latest five periods and divide by five.

as project properties during the period or comparative period are not included.

Cash flow per share

Cash flow for the period in relation to the average number of shares outstanding.

Cash flow from operating activities per share

Cash flow from operating activities for the period in relation to the average number of shares outstanding.

Commercial property

Property, which predominantly consists of commercial space.

P/E ratio

Share price at the end of the period, in relation to profit after tax per average number of outstanding shares for the latest rolling 12-month period.

Earnings per share after tax

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

Interest coverage ratio

Profit or loss before changes in value and impairment losses with reversal of net financial items in relation to net financial items.

Public use property

Property, which is predominantly used by tax funded activities and is specifically adapted for community services.

Equity/assets ratio

Equity in relation to total capital employed at the end of the period.

Net asset value

Equity with the addition of deferred tax liabilities related to investment properties.

Net asset value per share

The Group's net asset value in relation to the number of outstanding shares at the end of the period.

Occupancy rate – floor space

Let floor space in relation to total floor space, excluding garage, project properties and voluntary vacation.

Changes in value, investment properties

Profits or losses from sales of investment properties during the period less expenses and the assessed market value of the properties at the immediately preceding reporting period and profits or losses from the change in the assessed market value of investment properties compared to the immediately preceding reporting period.

Surrender rate

Proportion of commercial leases, which are extended in relation to the proportion of cancellable commercial leases.

Surplus ratio

Net operating income as a percentage of rental income.

For further information, please refer to: www.wallenstam.se/glossary

*	Jun 30,	Mar 31,	Dec 31,	Sep 30,	Jun 30,	Mar 31,	Dec 31,	Sep 30,	Jun 30,
Bridge alternative performance measures	2024	2024	2023	2023	2023	2023	2022	2022	2022
Equity, SEK million	30,743	30,833	30,500	31,257	31,045	31,461	31,432	33,474	32,720
Average equity, SEK million	30,876	31,019	31,139	31,734	32,026	32,212	32,074	31,567	30,486
Total assets, SEK million	68,192	68,008	66,841	67,743	67,659	67,157	67,049	69,636	69,397
Average total assets, SEK million	67,689	67,482	67,290	67,849	68,180	68,171	68,079	67,370	66,028

**Operational key ratios, are not considered alternative key ratios according to ESMA's guidelines.

This is Wallenstam

BUSINESS PLAN 2030

Goal: The net asset value shall amount to SEK 100 per share.

Focus areas

• We shall improve the customer's overall impression of Wallenstam every year through attractive apartments and premises as well as good service.
• We shall strive to ensure increased security for our customers that live and work in our properties.
• Through our strong corporate culture, we shall be an attractive employer and improve our Engagement Index score every year.

Defined key ratios

• The equity/assets ratio shall not be less than 35 percent.

VISION

Wallenstam shall be the natural choice for housing and premises.

BUSINESS CONCEPT

We develop and manage people's homes and workplaces based on a high level of service and long-term sustainability in selected metropolitan areas in Sweden.

WALLENSTAM TODAY

Wallenstam was founded in 1944 and its head office is located in Gothenburg. The company's B share is listed on Nasdaq Stockholm, Large Cap and Wallenstam is one of the larger listed property companies in Sweden.

Our residential properties are located in Stockholm, Uppsala and Gothenburg, while our commercial properties are concentrated towards inner city locations in Gothenburg. All in all, Wallenstam has approximately 12,200 apartments and 1,000 commercial tenants. Wallenstam also builds rental apartments for its own management operations.

Wallenstam produces renewable electrical energy through 53 of its own wind turbines in operation. The installed output amounted to 112 MW. As we produce at least as much electrical energy as our properties consume, we are self-sufficient in renewable electricity.

Operations are conducted in the Stockholm business area and the Gothenburg business area.

Stockholm

The majority of our apartments, approximately 6,450, are located in the Stockholm business area. Approximately 630 of these apartments are located in Uppsala. On closing day, we had about 950 apartments under construction in the Stockholm business area.

Gothenburg

Our property holdings in the Gothenburg business area consist of about 5,750 apartments and about 900 commercial tenants that rent office and retail premises, mainly in inner city locations in Gothenburg. On closing day, the Gothenburg business area had about 300 apartments under construction.

BUSINESS PROCESS

Wallenstam builds, acquires, develops and manages properties and areas based on the needs of people and society, and according to wishes and requirements of customers. We create value growth through construction, development and management with a high level of service and long-term sustainability.

Profits are reinvested and used to further develop the business. The shareholders receive a share of the value growth through these reinvestments and through dividends.

Calendar

Interim report Q3, 2024 October 22, 2024 Record day dividend no. 2 October 29, 2024 Exp. disbursment of dividend no. 2 November 1, 2024 Year-end report 2024 February 6, 2025

This is information that Wallenstam is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out below, at 15:00 CEST on July 8, 2024.

This report has not been subject to review by the company's auditors.

Contact

For further information, please contact Susann Linde, CFO and Head of IR tel: +46 705-17 11 34 e-mail: susann.linde@wallenstam.se

Wallenstam AB (publ) SE-401 84 Gothenburg Visiting address: Kungsportsavenyen 2 Telephone +46 31-20  00  00 www.wallenstam.se Co reg. no.  556072-1523