Atrium Ljungberg AB (publ) (ATRLJ_B) Q1 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Hello and welcome to Atrium Ljungberg's presentation of Q1 twenty twenty six. The headline for this report is Strong finances and strong locations in a changing world. Let me begin by summarizing the key developments this quarter. Overall, I can note that the global geopolitical conditions remain uncertain, where we have had the military operation in Venezuela, the hostile voice around Greenland and the military aggression in Iran, all in the first quarter. It seems like most business still think the war will end in a short time and the office rental market has not changed since last quarter. Our net letting amounted to minus SEK8 million in the first quarter. I had course hoped for a positive number, but must state that a larger lease was unfortunately not completed in the beginning of the year as management did not receive board approval for the relocation and consequently remained in their current premises. And the fact is that net letting is always weaker in the first quarter. We had growth in our rental income of 3%, but profit from property management decreased by 0.9% due to a cold start of the year with increased heating costs and clearance of snow in the quarter and customer losses. Profits from property management decreased by 3.5% due to the same things I just mentioned, but also due to higher interest costs. We report negative value development in the portfolio. This is mostly driven by in yield requirements in Siesta, partly by the lower inflation assumptions for 2026 and partly by slightly weaker cash flow due to evacuated tenants preparing for upcoming projects. We invested billion in the first quarter and the property value amounted to SEK61 billion. We currently have ongoing projects representing SEK8.4 billion in ongoing investments, of which SEK 4,...