Diös Fastigheter (DIOS) investor relations material

Executive summary

• Q3 income from property management rose 5% YoY to SEK 281m despite lower reported rental income following net property disposals; comparable rental income grew 1.6%.

• Profit after tax increased to SEK 360m from SEK 303m, supported by property and derivative valuation gains.

Financial highlights

• Q3 rental income was SEK 652m versus SEK 666m; operating surplus was SEK 479m versus SEK 484m, with a 74% surplus ratio.

• Net financial expenses declined to SEK 178m from SEK 196m; net financial items improved SEK 18m YoY.

• Q3 property value changes included SEK 32m of unrealized gains and SEK 19m of realized losses; unrealized derivative gains were SEK 162m.

• Jan–Sep property management income rose 3% to SEK 779m, while operating surplus was flat at SEK 1,390m.

• Jan–Sep unrealized property gains were SEK 155m and derivative gains were SEK 154m; earnings per share were SEK 6.06 and long-term EPRA EPS was SEK 5.20.

Outlook and guidance

• Near-term occupancy is expected to remain relatively flat as new leases typically take 6–12 months to affect occupancy; positive net letting outlook was unchanged.

• Leasing and transaction discussions were active heading into year-end, with rental-market activity picking up in September after a quieter summer.

• Earning capacity as of 1 October indicated annual property management income of SEK 973m and SEK 7.00 per share; this normalized snapshot is not a forecast.

• Targets are 10% annual growth in property management income per share and net asset value per share; Jan–Sep investments decided totalled SEK 614m.