Intea Fastigheter AB: Interim report January - March 2025

CEO Charlotta Wallman Hörlin and CFO Magnus Ekström will present the Interim report January-March 2025 in a webcast at 3.30 p.m. CETathttps://www.finwire.tv/webcast/intea/eng-q1-2025/ Subsequent questions can be posted directly to CFO Magnus Ekström by email: [e-mail]

January - March 2025

• Rental income increased by 21.6 percent (13.2) and amounted to SEK 356 million (293), of which SEK 48 million (0) comes from project properties. In a like-for-like portfolio, rental income increased by 1.5 percent.
• Profit from property management increased by SEK 57.4 percent and amounted to SEK 198 million (126).
• Changes in the value of investment properties totalled SEK 146 million (10), of which SEK 50 million (31) was attributable to project properties.
• Profit after tax for the period amounted to SEK 310 million (209).
• Profit for the period attributable to the shareholders of the parent per Class A and Class B share totalled SEK 1.54¹⁾ (1.20) and per Class D share SEK 0.50¹⁾ (0.50).
• Total investments in existing investment properties for the period amounted to SEK 257 million (332).
• The property value at the end of the period was SEK 24.1 billion (21.7).

1) No diluting instruments exist.

Significant events during the quarter

• In January, Intea signed a new six-year lease agreement with the Swedish Police Authority in Linköping. The lease pertains to just over 4,200 sqm of lettable area, with the annual rent projected to be around SEK 9.2 million, indicating a rent increase of approximately SEK 3.4 million compared with the current annual rent for the existing lease. Occupancy is scheduled for late 2025 or early 2026.
• In February, Intea and the Swedish Prison and Probation Service agreed on a lease to expand Kristianstad Prison by approximately 10,000 sqm of lettable area, with an option for an additional 3,200 sqm of lettable area. The term of the lease is 25 years with an estimated annual rental value of SEK 39 million. The project is expected to be completed in the second quarter of 2026.
• In February, Intea was awarded a custody unit project in Gävle comprising just under 22,000 sqm of lettable area. The project includes 110 custody rooms, offices and facilities for the national transport unit. The lease agreement has a term of 25 years from completion. The annual rental value is based on the costs incurred in the project and is currently estimated to amount to approximately SEK 96 million. The investment is estimated to amount to approximately SEK 1,450 million. The project is expected to be completed in 2030.
• In February, Intea was awarded the contract for a prison under construction in Värnamo with approximately 29,000 sqm of lettable area. The project includes 250 prison beds with associated areas for administration, employment, healthcare, etc. The lease agreement has a term of 25 years from completion. The annual rental value is based on the costs incurred in the project and is currently estimated to amount to approximately SEK 163 million. The project is expected to be completed in 2031.
• In March, Intea and the Swedish Prison and Probation Service signed a lease for an extension of Viskan Prison with approximately 3,000 sqm of lettable area. The annual rental value is based on the costs incurred in the project and is currently estimated to amount to approximately SEK 23.7 million. The project is expected to be completed in the fourth quarter of 2027.

Significant events after the end of the quarter

• In April, Intea took possession of the custody unit project in Västerås, with an estimated lettable area of approximately 34,600 sqm. The lease agreement has a term of 20 years from completion. The annual rental value is based on incurred costs in the project and is currently estimated to amount to SEK 225 million. The project is expected to be completed in the third quarter of 2028.
• In April, Intea was awarded a police facility project in Gävle of just over 33,000 square metres of lettable floor area, which will include offices, a police station, a lab, a shooting range, training facilities and garage space. The lease agreement has a term of 15 years from completion. The annual rental value is based on the costs incurred in the project and is currently estimated to amount to approximately SEK 104 million. The investment is estimated to amount to approximately SEK 1,600 million. The project is expected to be completed in 2030.

The CEO's comments

We can now summarize the company's first full quarter as a listed company. Intea's business model, with a focus on long-term public sector tenants, is a strength in uncertain times, and many positive and exciting things are happening within the company. While our tenants' operations generally follow the economic cycle, they also have sector-specific drivers. Some are currently in a very expansive phase, which is reflected in the company's successful project operations.

Our tenants are growing

There is a high level of activity within our local property management organisations, and during the quarter new lease agreements have been signed with tenants in Linköping, Halmstad and Östersund, totalling approximately 6,000 square metres.

In Halmstad, the new lease to the municipality represents the final piece of the puzzle, meaning that a previously fully vacant building on the university campus will now be fully leased for educational purposes.

Our projects are increasing

Development projects are a central part of the company's operations, which makes it especially gratifying to note that so far this year we have added just over SEK 9 billion in new projects, with a rental value of approximately SEK 660 million, on behalf of Kristianstad, Västerås, Gävle and Värnamo. This figure also includes an investment of SEK 1.6 billion for the new police headquarters in Gävle, which we recently announced. Please note that the procurement process is still subject to a standstill period through today. The projects in Gävle will form Intea's third legal centre, alongside those in Kristianstad and Helsingborg.

The need for new prison places is acute, and we are working together with The Swedish Prison and Probation Service at several of our facilities to help create more capacity. A good example is the recently inaugurated prison in Viskan, where in March we agreed with The Swedish Prison and Probation Service to expand the facility by 120 places. A similar expansion was finalised in February and concerns the prison in Kristianstad, which was acquired from Specialfastigheter in October last year. There, we have signed an agreement for just under 200 new places, which are expected to be completed as early as next year.

Intea currently owns and develops five prisons, the most recent of which is the facility in Värnamo, awarded to Intea in a landlord procurement process in February.

Strong performance for property management

Operating profit increased by just over 57 percent to SEK 198 million, mainly due to completed projects, acquired properties, and lower interest expenses. The growth in operating profit per Class A and B share amounted to 53 percent for the quarter.

The interest coverage ratio increased to 3.5 times from 2.4 in the previous quarter. The average interest rate declined slightly, while the average remaining contract term for public sector tenants increased from 7.8 to 8.3 years.

The value of the property portfolio increased by 2.3 percent to SEK 24.1 billion, corresponding to an average initial yield of 5.2 percent.

Credit and capital markets

We have been able to take good advantage of market volatility, and during the quarter we entered an additional SEK 2.5 billion in new interest rate swaps at an average rate of approximately 2.2 percent.

At the end of the quarter, the company had outstanding commercial paper of just under SEK 4 billion, an increase of almost SEK 1 billion since the beginning of the year, and more than SEK 7 billion in unutilized credit facilities.

In late March, Intea's Class B share was included in the FTSE EPRA Nareit Index.

An exciting and dynamic journey ahead

The high level of activity, particularly among law enforcement agencies, is driving demand for new and adapted premises, creating attractive growth opportunities both within our existing portfolio and through new business prospects. The first quarter in a listed environment was eventful, and I look forward with anticipation to an equally exciting and dynamic continuation of the year!

Charlotta Wallman Hörlin, CEO

For further information, please contact:
Charlotta Wallman Hörlin, CEO, [phone]
Magnus Ekström, CFO, [phone]

This information is information that Intea Fastigheter AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2025-05-05 12:07 CEST.

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