• Rental income increased by 12% to MSEK 551 (492).
• Net operating income increased by 17% to MSEK 383 (328).
• Profit from property management increased by 40% to MSEK 235 (168). Profit from property management per common share increased by 34% to SEK 3.47 (2.58).
• Changes in the value of properties totalled MSEK 101 (2).
• Net profit after tax totalled MSEK 274 (241), equivalent to SEK 4.08/common share (3.86).
• Net investments for the period amounted to MSEK 223 (104), of which MSEK 150 (4) related to acquisitions of properties, MSEK 149 (132) to investments in existing properties and new construction, and MSEK -76 (-32) to divested properties.

Comments by CEO Andreas Whalén
Profit from property management for the quarter amounted to MSEK 235 (168), which is an increase of 40 percent compared to the previous year. The increase is primarily due to a larger property portfolio and a lower average interest rate. Profit from property management per common share amounted to SEK 3.47 (2.58), an increase of 34 percent.

The forecast for profit from property management for 2025 amounts to MSEK 1,050, an increase from the previous forecast published in our year-end report of MSEK 1,030. The forecast increases primarily due to mild weather, investments and one-time compensations for early vacating from tenants. Should the forecast be realized, it would represent an increase in operating profit of 19 percent per common share compared with the outcome for 2024. The full-year effect of larger acquisitions is the biggest explanation for the increase, but also increased earnings in our existing property portfolio and a falling average interest rate.

One of NP3's most prioritized goals is to strengthen the profit from property management per common share while maintaining or reducing operational and financial risk. With this in mind, the board has decided to update the company's financial target regarding loan-to-value ratio. The new target is that "the loan-to-value ratio may amount to a maximum of 60 percent", compared to the previous target "that the loan-to-value ratio shall be between 55–65 percent". The new target clearly indicates a lower risk level, and today we strive to have a loan-to-value ratio of 50–55 percent. The lower loan-to-value ratio together with our net debt to EBITDA ratio of 8 times gives NP3 greater financial flexibility but also lower margins on borrowed capital.

Business cycle
The economic climate remains challenging and difficult to assess. New business ventures have declined sharply in recent years and, as the threat of inflation still exists, it looks like a turnaround in economic growth will be delayed.

NP3's net letting for the quarter amounts to MSEK 3. This result, together with a slightly increased vacancy value, is not satisfactory. Despite our positive net letting, we aim for better results, and I still have an optimistic view for the full year despite a weak start. We received some larger lease termination notices at the beginning of the year, but the interest shown in these premises means that I do not worry about neither rent levels nor a significantly increased vacancy rate. I also note that tenant demand in all of our markets is stable.

It is natural that some of our submarkets will take the occasional short-term hits and it is likely to continue to be that way. But even in a challenging economic climate and in periods when key figures, such as net letting or vacancy levels, tend to "go against us", NP3's decisions should be characterized by a long-term perspective with the aim of achieving a sustainable and stable cash flow and profit. A clear example is our business area Gävle, which is still our strongest market in terms of rental development and tenant demand. My assessment is that the increased vacancy we see in Gävle is cyclical and NP3 plans to continue investing there in the long term.

Valuation
The valuation yield for our property portfolio decreased marginally during the quarter by 1 bps to 7.09 percent. The inflation assumption for 2025 increased from 1 to 1.5 percent, which in isolation resulted in a positive value change. In total, the quarter's positive unrealised value changes amounted to MSEK 101.

After the quarter, NP3 also completed the divestment of three properties with a value of MSEK 463. The divestment results in a realised value change of MSEK 25. The transaction primarily concerned a retail property in Kiruna and was carried out with the aim of streamlining our property portfolio. This segment is not part of NP3's core focus and Kiruna is a location where we do not have our own staff. My assessment is that we can reinvest the released capital at a higher yield in our existing main markets, which will lead to improved earnings.

Future
The outside world is not becoming less volatile. In addition to concerns about wars and a weak economic climate, there is now also a trade war. Even though NP3 is not directly exposed to tariffs, we are all affected in some respects. It could be our customers, uncertainty in financial markets that creates uncertainty in the price of capital, and more. I have previously emphasized that predictability in the cost of capital is the most important aspect for our investment activities. We will follow market developments carefully. NP3 has made positive net investments during the beginning of 2025 and, after some divestments, is ready to continue investing if the right opportunity arises.

We are constantly evaluating a large number of investment opportunities, primarily from local sellers in our markets. Let's hope for a more stable outlook and a less volatile and ominous outside world in the near future. I would also like to emphasize that despite the uncertain times, NP3 as a company is well equipped to deal with the unforeseen events that this may bring.

I would like to extend a big thank you to NP3's employees, shareholders and other stakeholders for your strong commitment, which greatly contributes to NP3 being well equipped to meet current and future challenges - and opportunities.

This constitutes information that NP3 Fastigheter AB (publ) is legally obliged to publish under the EU's Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person specified, on 7 May 2025 at a.m. 08.00 (CEST).

This report has been prepared in both Swedish and English versions. In case of variations in the content between the two versions, the Swedish version shall govern.