Atrium Ljungberg Summarizes Today’s Capital Markets Day

Strategy and Property Portfolio
Atrium Ljungberg’s strategy is to develop urban districts in attractive locations where strong place brands drive demand over time. Proximity to public transport, particularly metro systems, is a key factor, as it strengthens long-term attractiveness and commercial potential.

During the day, Ted Lindqvist of the research firm Evidens presented their methodology and demonstrated how office rental growth is linked to developments in office employment and overall market sentiment. The analysis also shows that accessibility, service offerings and the concentration of office workplaces are decisive factors for rental levels and area attractiveness. Investments in urban development and infrastructure contribute to strengthening these factors over time and improve an area’s market position and value growth.

Project Portfolio and Risk Management
Project development is the primary driver of value creation, with the company prioritizing risk-adjusted returns over volume.

Atrium Ljungberg applies a structured approach to risk management across all stages, including market, execution and financial risks, and uses phased investment decisions together with early leasing to enhance predictability. Active portfolio and capital management ensure that investments are prioritized based on cash flow, risk and strategic value.

The market review indicated that vacancy levels have increased in the short term, while demand for modern, high-quality office space in the right locations remains strong. The “flight to quality” trend means that tenants are increasingly prioritizing quality and urban locations.

Financial Targets and Long-Term Potential
Atrium Ljungberg also presented its financial targets, maintaining its goal of a return on equity of at least 10 per cent over time, along with clear frameworks for investment pace, dividends, leverage and interest coverage ratios.

As part of the Capital Markets Day, simulations of the long-term development of rental income and property values were presented, based on assumptions from Evidens regarding rental levels and an assumed index growth of 2 per cent per year. The analyses are intended to illustrate the potential impact of the company’s project portfolio and urban development strategy.

During the day, the recently completed leasing agreement with Ericsson in Hagastaden was also discussed. The projects comprise approximately 59,000 square meters of office space, corresponding to an annual rental income— including supplements and parking income—of approximately SEK 375 million, and a total investment of close to SEK 6.2 billion. The leases with Ericsson run for 15 years, with planned occupancy between 2031 and 2033.

“The deal with Ericsson is a clear example of the ‘flight to quality’ trend and how our strategy is put into practice—developing attractive urban environments in strong locations and creating long-term value growth,” says Annica Ånäs, CEO of Atrium Ljungberg.

Conclusions from the Day
Overall, the Capital Markets Day demonstrated how Atrium Ljungberg’s combination of a strong existing property portfolio, an extensive project portfolio and a consistently executed strategy creates conditions for long-term value creation.

Based on Evidens’ projected rental growth in the company’s urban development areas and its planned projects and assuming unchanged average interest rates, vacancy levels and yield requirements in the existing portfolio, this implies a simulated potential in which income from property management increases by 110 per cent and net asset value per share reaches SEK 115 (from SEK 54 today), corresponding to a growth of 113 per cent by 2033. This is achieved without challenging the company’s long-term targets of a maximum loan-to-value ratio of 45 per cent and an interest coverage ratio of at least 2.0x.

“The simulation we present is an illustrative scenario based on a number of clearly disclosed assumptions. It provides a picture of the long-term potential of our company, given our strategy and priorities,” says Anna Jepson, CFO of Atrium Ljungberg.

Important Information — Atrium Ljungberg AB (publ)
This presentation and the materials displayed or distributed in connection with the capital markets day of Atrium Ljungberg AB (publ) (the ”Company”) (together, the ”Presentation”) are provided for informational purposes only.

The Presentation constitutes a simulation of the Company's potential development that is based on an external third party's assumptions regarding the real estate market and its development. The simulation does not constitute a forecast, a financial target or any other statement by the Company. The Company has not verified the assumptions on which the simulation is based and accepts no responsibility for their accuracy, completeness or reasonableness. The conditions and assumptions underlying the simulation are set out in the Presentation.

The Company accepts no responsibility for the outcome of the simulation and assumes no liability whatsoever for any loss arising directly or indirectly from any use of the Presentation or its content. The Presentation does not constitute forward-looking statements on the part of the Company, and the outcome of the simulation should not be construed as any undertaking or assurance as to future results.

The Presentation does not constitute, and does not form part of, an offer or invitation to acquire, subscribe for or otherwise deal in any securities issued by the Company, nor does it constitute investment advice. The information is provided as at the date of the Presentation, is subject to change without notice and will not be updated. In the event of any discrepancy between the Swedish and English versions, the Swedish version shall prevail.