Atrium Ljungberg (ATRLJ) investor relations material

Strategic Vision and Business Model

• Focus on urban development in Stockholm, leveraging major areas like Hagastaden, Sickla, Slakthusområdet, and Slussen, with a strategy centered on mixed-use, sustainable, and high-quality environments to drive long-term value creation.

• Sustainability is fully integrated, targeting net zero by 2040 and already achieving significant reductions in climate impact, with a 50% reduction targeted by 2030 (base year 2023).

• The business model emphasizes customer retention, leasing, and being a strategic partner to tenants, with high employee engagement and satisfaction scores.

• Investments are concentrated in Stockholm, with SEK 40 billion planned through 2033, and a disciplined approach to risk and financial KPIs.

• Urban development is evidence-based, focusing on accessibility, service offering, and office clustering to maximize rental potential and area attractiveness.

Financial Guidance, Goals, and Projections

• Simulation projects net asset value per share to rise from SEK 54 to SEK 115 by 2033, a 113% increase, assuming external rent forecasts materialize.

• Annual investment volumes are expected to reach nearly SEK 5 billion by 2030, with a focus on project profitability and maintaining a loan-to-value ratio below 45% and interest coverage above 2x.

• Return on equity is targeted at 10% over time, with historical averages achieved and future simulations indicating continued strong performance.

• Rental income is projected to grow from SEK 3 billion in 2025/2026 to SEK 5.3 billion in 2033, with property value increasing from SEK 59 billion to SEK 112 billion.

• Income from property management is expected to more than double from 2025 to 2033, with dividends at about one-third of property management income.

Project Development and Risk Management

• Project development is managed with strict risk controls: projects typically require 50% pre-leasing before start, except for strategic cases like subway-linked buildings.

• A 20% project profit margin is targeted, with recent projects locking in even higher yields; Q1 2026 saw a 13% development gain on SEK 8.4 billion committed.

• Construction cost inflation is assumed at 3% per year, with contingency included in major projects.

• Sustainability in construction is prioritized, with a 42% reduction in project climate footprint from 2021 to 2025 and ongoing efforts to push industry standards.

• Flexible contracting strategies and active capital management support stable returns and risk mitigation.