Jan Ihrfelt

Asked about the drivers behind the NOI margin increase, the state of the Finnish residential market, the timeline for new project starts, specifics on property revaluations, and the development of bank margins during the quarter.

Answer

The NOI margin increase is due to minor fine-tuning and expectations of slightly better performance. The Finnish residential market is still slow due to competition but is improving, with positive like-for-like growth, and is expected to get better in H2. They are cautious about new project starts but hope to begin something this year. Property revaluations were very small, reflecting slightly better performance than year-end assumptions. Bank margins have improved slightly, averaging around 1.10.

Inquired about rental growth in the Finnish residential market compared to Sweden, and asked for an outlook on the office market.

Answer

The company is now seeing positive like-for-like rental growth in the Finnish residential market, which is improving monthly. It is difficult to say if it will be lower than Sweden's next year. The office market is competitive but stable with flattish rents, particularly in Stockholm and Gothenburg. It does not pose a major risk to Balder's overall portfolio due to its relatively small share (16%).

Jan Ihrfelt asked if Balder is seeing rental growth in the Finnish residential market and how it might compare to Sweden. He also requested a broad overview of the office market, specifically concerning new lettings and vacancy risks.

Answer

Erik Selin (executive) confirmed that there is now positive like-for-like rental growth in Finland, and it is improving monthly. He called a comparison to Sweden's growth next year a "close call." Regarding the office market, he described it as competitive but not bad, with rental levels remaining flattish on turnover. He noted that Stockholm is currently a bit tougher than Gothenburg but that the segment's impact on Balder is limited due to its relatively small portfolio weight.

Jan Ihrfelt of Kepler Cheuvreux asked about the drivers behind the 100 basis point increase in the NOI margin, the current state of the Finnish residential market, the timeline for new project starts, specifics on property revaluations, and the development of bank margins during the quarter.

Answer

Erik Selin, executive, described the NOI margin uplift as a minor 'fine-tuning' based on expectations of slightly better performance. He characterized the Finnish residential market as 'still slow' due to competition but improving and expected to be better in H2. On project starts, he expressed caution but hoped to begin something this year. Revaluations were very small, reflecting performance slightly better than year-end assumptions. Ewa Wassberg, executive, added that bank margins improved slightly during the quarter to an average of 1.10%.