Pandox AB (publ) ($PNDXB)

Welcome, everyone. Welcome to London, and welcome to Pandox. It's really great to see so many of you in this room, many familiar faces, but also a couple of new ones. And that is really great to see. A warm welcome also to all the people who are following the webcast online. We really appreciate that, too. Just some short outlines of the day, and it's basically divided into two parts: an update where Pandox stands both strategically and financially, followed by a tour of 5 of the hotel properties we have in London. You will meet the full management team. That is basically a new feature. We have never done an exercise like this with the full management team. So that's one of the big things with this event. And we have a lot to cover, and we'll keep the tempo high. And as a special bonus, we also have our Chairman, Mr. Christian Ringnes, and [ Main over ] also in the audience, Yes. and he will also have a part of the presentation later. Behind me on screen, you can see today's agenda. And basically, yes, it's pretty sort of self-explanatory. On the QR code you have on the back of your badge. If you just scan those, you can see the agenda also in detailed times. And they can also find the WiFi information if you need that. So basically, 4 blocks or presentations followed by a Q&A session. Then we have a break at 09:55 to 10:15, and that is basically the break we have during the presentation session, and then everything ends at 12:00, where we have lunch. And then we move over to London Wall, just on the other side here, where the hotel tour starts at 12:50. And the Green Hotels are ones that we will see in the city center today, Clayton London Wall, which is just 1 minute away, as I said. City of London, Shoreditch and also [indiscernible] resident hotel, Marriott, Kensington. And then for those who are traveling back to the respective destinations from Heathrow, we also have an opportunity to go to Hilton T4 for a dinner and also a short tour of the hotel. And here you have the hotels. And some practical information. We will take questions from the webcast, written. [Operator Instructions] And Hungary yes, there will be next stations at every stop. Right. With that, play music. [Presentation]

Good morning, and welcome to our Capital Markets Day 2026. I am Liia Nou, I'm the CEO of Pandox. And I've been in this company for -- this is my 20th year, the first 14 years as the CFO. So why is Pandox and the hotel market interesting? Well, there are many supporting factors. Whether you are -- and we will see whether -- because -- whether you're an equity investor or a bank or a business partner. But again, it's -- many supporting factors and we will drill down through them during this morning in my presentations as well as the following presentations in my management team. The outlook for our sector remains attractive. Demand for travel and tourism is growing. Hotel yields better than many other real estate classes, and we have a strong platform and business model offering both upside and protection of cash earnings and value creation. There should be one more page around how the market is growing. The market measured in hotel nights sold has grown for the 20 [indiscernible] years. And here you see the growth, CAGR showcasing was 2% annual compounded growth for the past 20 years. Travel is prioritized and spending is increasing. Consumers allocate more spending to travel as a share of the total consumption and people are putting more value on experiences rather than material things. So a larger part of the consumption is placed on travel and our types of experiences connected to it. As income rises, travel spend increases meaningfully, especially as the middle class expands. New travels enter the market each year and in mature markets, older generations increasingly prioritize travel experiences as well. So as the world growth wealthier, people get wealthier, and when they do, they travel more. This brings us to the core theme, active ownership. Our strategy is not passive holding. It's a hands-on value creation to how we manage, develop and optimize our assets. They are like 3 dimensions of pillars in our business model. We have property management where we own, improve and lease hotel properties to strong operators under long-term revenue-based leases. That's the main part. Then we have property development where we do value-accretive investments in our existing platform in our existing portfolio. And then we have portfolio optimization, where we have an active acquisition strategy based on deep industry knowledge, and we have the ability to act freely throughout the hotel value chain. And then, of course, not to forget divestments in order to free up capital for acquisitions and investments with a higher return potential. This is a split between our 2 business segments. The main part being Leases stands for 84% of our market property value -- property market value. And here, we own and lease the properties. And then we have our Own Operations, standing for 16%. And here, we own the properties, but run properties assets. And clearly, Leases are a core value engine, while new Own Operations is being the transformational value engine. And together, they create something which is basically more than 100% like the organic value it increases. And we'll get back to that many times during these presentations during this morning. So our business model gives us maximum flexibility and opportunity to build protect value and create value. We have a long-term strategy. But within that, we have an opportunistic mindset. We are open to try new things, well to create value. The multiple operating models enables continuous transformation in all kinds of ways. And Jonas, Jacob and our business area managers will talk much more about it after me. We have an asset-by-asset view, that means everything from having an individual business model for each property to being open-minded of how we actually think about value creation in each and every single hotel. It doesn't have to be a specific brand. It doesn't have to be a specific operating model. We can choose freely. And we have a diversified portfolio, which is the outcome of the work we have done. And that takes down a risk over time and generate a solid return. Our business model is clean and consistent in the way that it's simple. The main part is turnover-based leases with guarantees and we have secured bank financing only. super simple. The leases are easy to understand. We have a clear revenue model, no hidden fees, as well as a defined logical division of responsibilities between us and the tenant. And they align us both towards the same objective. So there's a shared upside with a tenant. We have a limited risk, and we share investments with sizable contributions from the tenants in our buildings from the [indiscernible]. Since the company was founded 30 years ago, we have built and learned that there's 3 important enablers. Specialization, we focus on hotel properties only. You need to understand both the real estate and the hotel operations. Size and scale provides the opportunity to invest in systems and people, to scale up and withstand market challenges. And then, of course, partnerships. Our strong network enables us to mobilize expertise and to move quickly. And then not to forget our own expertise within Pandox who make a big difference every single day. This is a great crowd. I love going to work every single day and many of all of the management team and also some other people here as well, you will meet here as well, you will meet here, during the day. Now let's shift from the business model to our assets. since Pandox was founded 30 years ago with a property market value of SEK 600 million in one country, Sweden alone and 15 destinations. We have grown 155x to a property market value of SEK 93 billion. We are in 11 countries and we had grown the number of destinations 6 times from 15 to 90. So quite a remarkable journey. And we have done many transformational acquisitions. The biggest one being Norgani in 2010, where we bought 74 properties, and that was the base for our business in Finland and Norway, especially. [indiscernible] in, in 2017 with 21 properties and of course, now Dalata in the end of 2025, where we acquired 31 properties. So this is Pandox land. This is what we look like today. 192 properties, SEK 93 billion of property market value, as I said, and with a blended yield of close to 6.4% and with the rolling NOI, net operating income of close to SEK 5 billion. And our properties are located in very strong locations. The market value weighted rating based on Booking.com is 8.9, you for sure want to be above 8%. So for Leases, it's 8.9, and for our own operations is even higher, 9.0. And clearly, recent acquisition have improved the location score since 2019. Now turning into our growth platform, cash flow, cash [indiscernible]. And starting by looking at our track record. What have we done? And here, we have total revenue, NOI, net operating income and cash earnings over the past 20 years. And even including the major downturn during the pandemic, we have grown by 12% in CAGR all these years. And you can see different phases. You can see like a -- you see a preface up until the pandemic, then you have the pandemic. And towards the end of the pandemic, we had the rate interest rate reset, which, of course, influenced the interest environment. And then post the pandemic, it's a more normalized base with a normalization of both demand and rates. From 2014, when we go back to the stock exchange and considering everything that has happened during this time. Here are some key metrics, which we follow and measured as CAGR per share. NOI growth 8%. EPRA NRV per share, 8.5%, cash earnings 6.3% and total shareholder return 7.9% based on December 2025. We have a systematic improvement of our portfolio, which is the result of all the work we have done for the last 10 years. And here's expressed as a value matrix per room. And you can see that revenue per route has increased by almost 60%. NOI have more than doubled, cash earnings 70% up and the property market value has also more than doubled per room. So a reflection of active ownership, higher profitability in the acquisition as well as [indiscernible]. Turning to return on investment. And here, we are in nominal terms, including the worst [indiscernible] strip out that year out than it would have been in 11.7%. So it's just based on the incremental increase in the NOI from all the investments we do, acquisition and take away all the divestments. And of course, excluding the later because that we acquired in the end of the year and that it's not -- so those are not in the figures. Our blended yield, 6.37, average cost of debt, [ 3.9]. So we have a healthy yield spread of close to 250 basis points. And how does that then look when you compare it to what it has been? We will look back over time, over the last 10 years. The average yield spread has been 2.8, compared to the 2.5 we have today. So not too far off from the yield spread we had before the pandemic. And of course, remember, it's a different interest rate environment. How does this stand in relation to other companies in the sector. And here, we have specifically looked at the Nordic region. And this is by courtesy from [indiscernible]. It's a slightly different mythology than what I previously shown, the [ 7.7 ]. This is adjusted for inflation. But basically, it proves the relative position in the same way as our own calculation. So Pandox is at a far left, which is where you want to be and at 6.8%, the higher end of this range. So from a relative perspective, relative to our Nordic region, it indicates that our capital allocation is sound. And this is a list of companies from Europe, as well as the Nordic region and from different asset classes. It is based on projected EBITDA forecasts for the coming year, divided by the enterprise value, i.e., so it's best neutral. And Pandox is currently trading at an EBITDA to EV yield of 6.3%, which is clearly higher than the average, which is [ 5.1 ] for the sector. So there is a substantial premium to the industry average, right, or wrong? So talking about growth. This is a growth platform, and we will come back in presentations in all of the different boxes. But very overview, the market is robust with many underlying strong secular growth drivers. Our investments, we spend currently between SEK 1 billion and SEK 1.5 billion into our existing platform. And the acquisitions, this thirds pillar of growth. we do as many as we can depend on the opportunities in the market. This may seem like a busy slide, but we'll come back to the -- in all the presentations. So this is what we call a growth map. And what it does and I will go through it very quickly it outlines. On the left, the property market value aggregated. We make no difference whether it's Leases or Own Operations per geography. In the middle, we have the market RevPAR, compounded annual growth rate over the last 10 years. So what has it been? What has the growth rate been, on the top, U.K., U.K. has been growing by 3.3% annually for the last 10 years. Switzerland at 1.9% in the quarter. And next to the long-term trend, you have the current trend, the rolling 12 months. For example, again, U.K. being 3.5%. So you see the long-term trend versus the current trend. And this is no forecast. It's a pure illustration of how the market is performing, which is good to have when you hear all of the presentations. And on the right, it's the RevPAR in local currency just in order to get the sort of filling RevPAR in each geography. Our investments, and I can't stress it enough. The majority part of the investments we do is to create cash flow, cash earnings, which is a mother of all good things. We group investment projects into 3 categories. We have the transformational investments. That's the bigger ones, the repositioning, the extensions, the conversions, they typically take a little bit longer time. We have replacement and renewal and these are more cyclical things, product upgrades, refurbishments and so kind. And then we have resilience of sustainability-related investments. And they are, of course, also part of the previous months. We have a portfolio thinking strategy for investments, which improves risk return over time. Investments in strong RevPAR markets in combination with strong location score are easier to do successfully. And Jonas will talk about this later, how we think about capital allocation between investments. And the main risk is not cost overrun or delays, even though we, of course, try to minimize those, but it's external factors. And except for the rare event of a pandemic with [indiscernible] restrictions then it's new supply, new capacity coming in, which takes time to get into the market. As of today, in our -- most of our markets, however, new capacity is rather limited. And again, we'll come back to that, and you will see this in much more detail. In the end, the selection of investments we've been doing recently, the green one being transformational, the bigger ones, Quality Grand bureaus, Scandic [indiscernible], the extension there, Leonardo [indiscernible] in [indiscernible] so forth. And this is the future, big and small. We have 49 projects in various countries -- 8 countries, actually, of which a majority part will be completed towards end of 2027. The total cost of these projects total cost is SEK 4.2 billion, and we have already spent SEK 1.5 billion, out of which SEK 900 million has earned 0 return. So it's sort of underway. So a lot of potential for future NOI coming. Target yield on cost, [ 9.5 ] on this SEK 4.2 billion. That includes around 11%, 12%, which is a low-yielding investment more of a technical character, very low single return on those. So it's a blended it of what we need to do and what we want to do. And like I said, most of the things we want to do because it's high yielding. Another beauty of our business model is that we have an embedded growth engine and that is called new roles, either through expansions or in existing buildings. And over the past 10 years, we have generated almost 800 rooms across 40 hotels. That's an average of about 69 rooms over the 11 years in half in existing buildings, half in extensions. And basically, we generated -- we created a small, medium-sized hotel every second year in our portfolio. And more rooms are coming. We have plus 600 rooms coming out and '27 and major part of 2027 -- sorry, '26 and major part '27. And Mikael in his presentation will go through some of these in more detail. Last but not least, we have been very active since 2020 in acquisitions. We've done 10 single assets. We've done 3 residents in by Marriott. We're going to visit 1 of them in [indiscernible] here afterwards in the property tour. And the latest acquisition, of course, of Dalata, adding 31 hotels. All in all, a total of 44 hotels, SEK 25 billion with a blended yield of [ 709 ] and the location scoring of 9.0. So we've clearly been acquiring at a higher level than our blended yield and with a strong location rating. And of course, not to forget the uplift we recorded on Dalata when the acquiring yield was 8.4%. Here, we show the yield on the properties, which we have on the books with long-term revenue-based leases. So to wrap things up before I hand over to my CFO, Anneli. It's all about growth and cash flow. We have -- we are active in a dynamic and growing market. We have a strong and proven platform for growth value creation. And as you know from history, we have plenty of opportunities for -- to acquire and we will, when we can. Thank you.

So my name is Anneli Lindblom, I am the CFO of Pandox since 5 years back. I have a background as CFO for several listed company. And I also hold Board positions into other listed companies with other kind of property assets than hotels. In this session, we will walk you through Pandox's financial journey. And I will finally be able to talk about Pandox in a longer perspective. I usually just end up talking about the latest Q report. And I will in this and actually get back to the Q report. So we have a few items on that one, too. So we will start by setting the frame, what drives the value creation and how earnings have developed 3 phases, and then [indiscernible] will be back in talk about how we finance the portfolio in practice. And now we're on the right slide. So our model for value creation is to be an active owner. And by being an active owner, we mean -- that means that we need to find the right business partner the right business model for all of our hotels. So to make sure that we have the right distribution to sort of increase the cash flow in the hotel property. We often highlight the runover based model. So we get natural exposure to the hotel market growth, while the contract structure also offers protection. When we talk about our strong platform for value creation, it's come down to 3 things: the active ownership that increased the cash flow and increase the value of the properties. And in that way, we have the flexibility in the financial part to give dividend to do investment and to acquire properties. And we also have clear financial outcome that we measure in especially the cash earnings but also in the EPRA NAV. And then we have the other KPIs that we need to have a decent level with LTV and net debt through EBITDA. This slide frames the full story of condos. First, the pre-pandemic period, where we had a different different level of the interest rates and very high demand and then the panademic period, but all the market forces were switched off and our model were truly tested in a really life situation. And then we have the reset of the interest. So this is sort of the new normal that we have today. Now I have [indiscernible] that will follow. This is growth over years. So we will start with the NOI. The growth has been 146% since 2014. It reflects our 3 drivers: acquisitions, investment in the existing portfolio and of course, the market growth. Then we have the same slide, but in cash earnings. We also see a clear long-term growth, 95% since 2014. And, of course, affected by the interest rate shift. And finally, the balance sheet. The value creation in the EPRA NRV per share. The pandemic had, of course, a temporary impact, but our values have shown to be resilient. And as Lee pointed out, we do have good values in the properties. Then my favorite slide. Why our lease model is so central. In good times, we get the upside through variable rents. We then have the protection with the minimum and the fixed rent, and that was proven to be working quite well during the COVID time. And we have, today, strengthened that protection it used to be around SEK 2 billion. As of the latest quarter, we now have SEK 3.1 billion in minimum and fixed rents. And when we talk about the turnover base leases, it's always said that it is unpredictable. But to be true, it's not that unpredictable. If you look at the leases quarter-by-quarter, we actually have a pattern that looks the same. This is from 5 years back, excluding the panademic years, of course. But it has shown that we have 22% of the annual turnover is in Q1. It has never been above 22%, but it has also never been below 21.8%. So it's really, really stable. When it comes to the cash flow, of course, it's little different story, but it's basically also the same. We have the highest earnings always in Q2 and in Q3. And of course, there are also some seasonal effects. So as for where the Easter falls in. So in 2027, we will again have the Easter in the first quarter, messing up all the comparable numbers, as always. And if we sum out a look at the portfolio. The value has more than tripled since 2014. And most, of course, from acquisitions, but we have also created value through our investments. And we typically target around 10% in return on investment. And then I mean as yield of cost. So typically 10% on the investments we do. And we do run larger investment projects. And often, they include, as Liia also pointed out, to add more rooms. We really love more rooms, and Michael will talk about that a bit later. And the portfolio has also changed in composition. 2014, we had like 30% as the international part and 70% at the Nordic park. Today are the opposite. We have the portfolios almost 70% international and 30% Nordic. And that shows that we have found a growth in larger and more liquidity international markets, and it has also affected how we work with the financing. So today, we have built a diversified loan portfolio with financing and very good long-term relationships with banks I can see a few of you in that. And to remind you, we finance the properties in local currency and in that way, we do get a hedging up to the LTV, naturally handling without having to buy protection. And yield has risen since 2019. And hotels are a high-class yield property or asset class. So it makes it resilient, and it has gone up since 2019. So it is a resilient factor. Then on our LTV. LTV is one of our key anchors. And historically, we have been around 50 and typically actually low [ 50 ]. The slides also elevate how we have founded growth. over time with significant acquisitions, some divestments and repeated share issue to create -- for value-creating transactions. The key point is that the equity has always been raised to create headroom for new acquisitions and investment and we see the opportunities. So net debt to EBITDA has been surprisingly steady, except, of course, for the bid phase. But when leverage ticks up, it's often around our acquisitions that is added immediately while the earnings is built gradually. If we include the revenue that we have reported on annual basis for Dalata, we are in the range of 9 to 10x in EBIT, net EBITDA. And dividend and payout ratio, it has been stable over the years, except on the quarter on years where we actually had governmental support that actually made it impossible to us to give the dividend. And the final conclusion. We have a proven and profitable model for valuation. We are committed to growth and to shareholder value. And we have a balanced approach when it comes to capital allocation. And with that, I will hand over to Joakim and then I will be back for some remarks on the Q1 report.

Okay. Good morning, and welcome all. A lot of familiar faces, of course, great to see you all here. My name is Joakim Andersson, heading up the Treasury Department for Pandox since 2017. And yes, consisting of 4 people, 2 of them sitting there, [indiscernible] So for those of you who haven't met them yet, you will have a chance to speak with them later on today. Okay. Over the next few minutes, I will give a clear view on how we at Pandox work with financing and risk. And basically, at this core -- this is about building a financing setup that remains stable and available through ups and downs, both when it comes to the business -- sorry, hotel business and the credit markets. And our approach is built on 3 simple principles, simplicity, resilience and flexibility. And these principles, they guide us on how we structure our debt today and how we make financing decisions over time. And let me start off with how the loan portfolio looks today. The structure is [indiscernible] simple. We have a debt volume of close to SEK 49 billion. Each local underlying assets is financed in local currencies. We have an average interest rate of 3.9%. Out of that, 1.9% is consisting of credit volume. The average repayment period is 2.2 years currently. And of course, that doesn't mean that we have a single point of refinancing in 2.2 years. We have a well-staggered maturity profile. So we're able to finance step-by-step and also be in control and take advantage of positive market and a less positive market, we can be more selective when actually refinancing our debt. Around 40% of our total debt is sustainability linked or pure green finance. So why do we choose the structure are financing this way? This portfolio reflects a clear and consistent financing strategy. Over time bank financing has been the most reliable and proven source of funding for Pandox. Our preferred loan maturity is between 3 to 5 years, which gives a good balance between costs, refinancing and flexibility. We work, of course, with a wide group of lenders at 12 in total. Many of you sitting here today, but mainly the Nordic lenders are able to support us in the Nordic region and outside the Nordic region. International lenders are able to support us across other different markets. This strategy has also delivered clear results over time. And just to say a few words on pricing. So pricing has increased -- decreased gradually since the pandemic. And as a matter of fact, all refinancings and new financing that we take up today, is actually lower than the average financing costs on the group. So that is, of course, a positive signal. At the same time, leverage has normalized since the pandemic. And for individual financings, we actually see loan value these days up to around 65%. And this should, of course, not be confused with the loan-to-value on the group as such. But this is how we -- this reflects how we actually structure individual financings as opposed to anything else. All that is secured by way of a combination of physical mortgages and share pledges. Commercial papers currently at around SEK 4 billion is a tool to a polish financial net basically and not a source of funding. Most loans have floating interest rates, and we manage the volatility by way of interest rate hedging. Our policy is to hedge at least 50% beyond one year. And all hedging -- or not all hedging, but most of all hedging is actually performed or executed at parent level, Pandox AB. The business model also adds resilience. The majority of our leases follow hotel revenues with downside protection through minimum rents. We always finance assets in local currencies. We keep currency risk low on the debt side by doing this, and remaining currency risk is mainly sits with equity and is managed over time as long-term orders. Green and sustainability-linked loans are a natural part of our financing framework and the share is continuing to increase. And finally, a few words on covenants. Hotel assets are, as you are familiar with, sometimes associated with complex and restrictive covenant packages. Our structure is simple by design. At group level, covenants are primarily linked to loan-to-value and interest cover ratio. All group comments are fully curable, very important to point out. What is also important is that we did not have any breach on [indiscernible] levels throughout the pandemic at all, stable cash flow from minimum rents supported covenant throughout that period. And this is not by accident, of course, the capital structure is designed to handle stress and maintain financial control, even in more challenging environments. And with that, I hand over back to Anneli.

So just a few remarks on the Q1 report that we presented last week. We had a promising start to the year. But as I presented before, it is our weakest quarter also this year. We had Dalata and prior acquisition contributed to the new normal level own operation also improved profitability despite that we actually have 2 hotels fewer for the most of the quarter. Total revenue were positive on a like-for-like basis. And net operating income has increased and cash earnings has increased and also EPRA NAV has increased. We have a stable financial position with significant refinance in this quarter. And it means that our bank loan portfolio maturing extended to 2.2 years and we also have annual interest savings of SEK 90 million due to new financing. So -- and then some remarks on the Dalata deal. First of all, the 31 hotels are reported as if they were integrated. But it is an ongoing reorganization phase. So we are still working with getting all the legal units and all that needs to be in the right place to make -- to have sort of the normal setup. Regarding our relationship with our main owner, in Eiendomsspar, who actually was the 1 that made this deal possible. So let me start that pointing out that this is not a cash flow effect. But the effect will only arise as Panda acquired the minority part of Dalata. And that will not happen immediately. It will happen when it's permitted due to our contract when we bought them, in accordance with IFRS. The minority holding is presented as a financial liability. And therefore, we have a financial long-term liability of SEK 120 million that represent the minority holding of the Dalata group that Eiendomsspar owns. We also booked 8% of interest according to the effective interest method. But as I said, no cash flow effect until we actually buy the last part of Dalata. And we have also had some changes -- other changes in some items, which together affected the overall picture. We have accelerated the amortization of the accrued arrangement fee for our acquisition financing. And that is basic because we can see that we can refinance the portfolio earlier than expected. Overall, we estimate the total net effect around [ SEK 100 million ]. And as you can see on this picture, we have tried to set out the effect of the cash earnings compared to when we presented it in the Q3 report on a rolling 12-month. And basically, we, at that time, was thinking that the effect should be more linear following the cash earnings. Now we have a linear effect, where we need to book 8% each coming years. So that was, I think, covered the questions from the Q1 report. And now I will hand over to Jonas Torner, Pandox CCO.

Okay. Thank you, Anneli. I'm Jonas Torner. I've been with the company since 2005, having different paths currently working as CCO Pandox. This section will be commercial as well as transactional in a kind of fast pace. We start off with high-level portfolio breakdown, so you get a feeling for the locations, the brands and such things. I will also have a crash course in the Pandox lease model. So back to school and look at an example of value creation of Pandox. Last but not least, how we approach transaction by [indiscernible] in a few minutes. I mean you've seen this for the last couple of years, we've been very active in the U.K. market, acquiring residence in and a few single assets. And together with the Dalata deal that we struck last year, we -- U.K. has become the home market or the biggest market that we're currently active in representing more or less 25% of the property market value. Germany and Sweden remains second and third, very important home market for us and Ireland through -- we have 3 properties before in Ireland, but with Dalata, the 21, 22 -- 21 hotels acquired in Ireland. So it's a big footprint for us. So from -- I would say, a very Nordic company with an operational hub in Belgium, we have now become a really diversified Northern European hotel real estate player. And we have meaningful exposure to very, very strong cities. All cities relying, of course, on a good demand mix of business demand leisure demand, meetings, events. Events is increasingly more important, I would say, in the future, bringing a lot of demand to our hotels. So this is the selection of the cities that we are part, the market value share in the cities we are active. So the biggest city actually is now Dublin with great locations for London, Stockholm, Brussels and Copenhagen. And the standout here, I would say, is the [ 21st ] the Dublin and London market as well as the Copenhagen market. In the European context, these are top star performers, I would say. Nothing wrong with Stockholm or Brussels for that but it's a different dimension with super high-pressure compression, meaning that a lot of days, a lot of nights are really, really full or close to full, making it possible for the operators to start yielding on their ADRs. So this is really top markets. If you look at our top 10 cities, it's roughly 50% of the portfolio, roughly 50% of the room count. And the remaining 80-plus cities, the rest. Of course, with a big portfolio, we have many large hotels. These are our 5 really cash cows I see a few happy bankers here. The top 5 is represented by Hotel Berlin, the residence in that we will see later on in Kensington, the absolute machine in Clayton Hotel at Dublin Airport, the Midland in Manchester and Schengen Copenhagen, all full service hotels in very good locations in its respective markets. Residences, however, is an extended-stay product, slightly different in configuration with a very high-yielding business model. But all in all, I would say, I mean, we are not kind of limited dependence on individual assets. The top 10 assets represent roughly 16% of the total portfolio. And the remainder [indiscernible].

Yes. Liia was talking about this. I mean, the majority part of the portfolio is located in city center hotels, whether it's be it international cities, regional cities, smaller cities or towns even. But the biggest chunk of our business is in city center locations. We have a quite large, I would say, ring road located park and stay kind of hotels or highway hotels, especially in Germany and Sweden, I would say, representing 60% of the portfolio. And then we have a big chunk of airport hotels throughout -- spread out over the platform in total. And the remainder, 9% evenly distributed between resort location, exhibition, center business market, just to get a view. Okay. I mean, on a weighted average, we are 8.9% on booking when it comes to location score, which is -- we can -- I mean, be proud of, I would say. And as Liia said, has really increased the quality of location the last couple of years. So this is one way of just looking at the portfolio, these are actually numbers dots without Dalata, prior to Dalata, just to give you flavor how we look at the portfolio. You have the RevPAR translated into [indiscernible] on the X axis, and we have the location rating on the y-axis. I mean, telling you that people are when the book stay, they normally tend to click 8, 9 and 10 locations, 8, 9 and 10 customer reviews. So I mean, we're in the good position here, I would say, for most of our hotel properties. We have a few ones that are kind of weaker and especially if you are in a weak location with kind of weak RevPAR you have to be very diligent when you look at CapEx and these types of products because it's very hard, of course, it's harder to move RevPAR in absolute terms when you're down in the bottom, you can't really move your location. But all in all, this is one we just how we look at our portfolio. We have a big base of really big tenants. That offers size and scale benefits to us, of course. The biggest partner or a tenant is Scandic/ Dalata, roughly 50% of total stock of total rooms, followed by Fatal. And then we have 4 groups that represent 4%, 5% each, Radisson, NH, Strawberry and Revo hospitality. I mean the common thing here is we want to work with the best partners and the best and most profitable operators. What this have in common is they are very strong on the distribution side with a high degree of loyal guests. They are also a very efficient and daily management, having really supportive central function that can support and drive EBITDA out in the hotel. And just to give you a flavor -- sorry, Anders. Just to give you an idea where we are in the chain scale segmentation, we're predominantly in the upper mid-scale to upper upscale segments of the market. These are not funding numbers that we have come out with. It's SDR that has put this, the brands into different scales. And everybody has stayed at Scandic know that Scandic hotels can vary in where they are actually in scale. But then for this matter for this graph, Scandic subscales, [indiscernible] is upper mid-scale. Anyhow, this is -- I mean, we are very familiar with this. We really like this kind of to be in the upper upscale and the mid-market segment is where we come from, that we we've been doing and practicing for the last 30 years. We have a very unique partner network, sorry, Ander. And that's all good on that. You have seen this many times before. But it really means to me, commercially, it's that we have a great source of information in our regular contacts with our operators and franchise giver or whoever. We gather Intel about markets and its dynamics. It gives us performance data, occupancy rate, RevPAR that we can benchmark against market or against designated competitive sets. It's often very actionable data that we use in our business decisions. Of course, with deal sourcing, we have a great benefit of having this and we -- it's also very handy when we are in a position where we need to find a new tenant for whatever reason. Okay, crash course. The Pandox lease model and how it actually works. I bear with me. focus on the operator P&L for the time being. This is just an example, but it could be a very typical example for one of our hotels. We have operated P&L. This is a 200-room hotel with an annual occupancy of 80, ADR 100, hence a RevPAR of 80, that gives an annual room revenue income of approximately SEK 6 million. We pretended this is a full service hotel, meaning that roughly 25% of the revenue is F&B, Food and Beverage and other revenue. All in all, SEK 8 million in revenue for the hotel operator. Switch to the owner P&L. We -- our revenue-based lease model is normally that we have a higher room rent, percentage rent on the room revenue. In this case, it's 30 multiplied with underlying room revenue of [indiscernible], giving us SEK 1.7 million in rent on rooms only. And then we have a lower percent on F&B revenue, less profitable revenue for the operator and hence a smaller amount of percentage rent, of course. Giving us in this particular case, roughly a total rent of SEK 2 million. In a normal case, often, we have an agreement with a minimum rent. It could never fall below that that level, in this case, roughly 75% of total revenue is kind of normal for new leases. Back to operator P&L again, gross operating profit, which is the profit level that you hear a lot about in this industry, 40% in this case. There are some fixed cost below that, could be business rates or insurance costs or whatever. And then you have the EBITDA, the profit before they actually pay the rent of 37% or roughly SEK 3 million in the EBITDA. And then they pay the rent to us with the rent cover in this particular case of [ 1.5 ], it could be a kind of typical lease contract, giving the operator an EBITDA roughly SEK 1 million or 12% of total revenue. Of course, when we have on our SEK 2 million in rent, we have some property cost insurance, some maintenance costs and it depends. Please ask a question when we have the time in the break over whenever, because I understand this could be quite a lot in a short time. But then we have responsibilities over the lease contract and I try to be fast here. We have operators obligations. It's day-to-day. They have day-to-day operation functionally wear and tear. They also have the maintenance, inspection and repair responsibility with basically all installation. When it comes to the balance sheet, they are responsible for anything that you can throw out of the hotel. The fixture and fittings, the equipment, and the majority part of services. That's their responsibility within this typical lease. Our responsibility as an owner is, of course, to structure the roof and the facade, very hard things. But also, we have the responsibility of replacing the big plans, heating, ventilation, lifts, machinery and all those kinds of things. I put bathroom in the bottom because in the Nordic lease bathroom is the -- not the headache, not the the obligation of the responsibility of the owner. Hence, in the European leases, that is the responsibility of the operator. Last slide before we head to Jake's transaction land is just to give you an example of how we create value. This is very much a team effort from Pandox side, its transaction, it's our analyst, its treasuries, property management is ESG questions. So that's how we go about this. This has happened to be a transaction in Stockholm. In 2023, we acquired a Best Western hotel with 221 rooms in the central location in Stockholm. And this was also typically Pandox. This is a tricky situation where the owner and operator were battling out in the courts over rents and responsibilities over CapEx. So we tried 1 year to unlock this deal by negotiating with the owner and the property owner and the operator at the same time, striking a deal both of them at the same day, which we did it took over a year, but that's how we did it. So our analysis showed there's an undersupply of lifestyle economy brands. In the capital, and the property itself had a very good fit towards that market, kind of small room, a lot of dark rooms and very limited public basis. So we did perform search and struck a deal with Scandic. They had just released their economy lifestyle brands, [indiscernible], and we struck a deal with them. We went in together with them, created a refurbishment program, they're taking their responsibilities, [indiscernible]. We're taking hours. We made a joint project, refurbishing rooms, adding more rooms. We found 13 more rooms in the basement where we actually allowed to have dark rooms in Sweden. So we created more rooms, and we did a lot of technical major and technical installations. So years the result, 20-year lease, revenue-based lease with a minimum, very good minimum with the Scandic concept. We -- together with the acquisition and the CapEx program, SEK 400 million roughly, the value sits at around SEK 600 million. So that's the SEK 200 million plus. That's really good. Over to you, Jake.

Thank you, Jonas, and good morning. So my name is Jacob Rasin. I've been with the company since 2011, and I work with transactions. So how do we approach transactions. The good thing is that we have several ways of doing it. So I will go through our toolkit. I'll go through some methodology about how to do, how we do a deal internally and some examples. But I also want to stress 2 things that are very important for the transaction process and that is flexibility and options. And let's start with structure. So from a [indiscernible] perspective, we're very flexible when it comes to ownership structure, and we do have operational capabilities. As you can see, we can use almost all operating models and so this provides us with a very valuable tool. We're looking at transactions to be able to use our operating capabilities, we can find ways through the transaction in order to find a long-term solution. For example, [indiscernible] in 2019, we acquired the former Marriott team Hotel in Nurnberg. It was a 2-year remaining fixed lease. We acquired the hotel based on that lease. We -- when it expired, we took over operations. We repositioned the hotels. We operate the hotels. And once we saw that the market was there, we found a long-term partner that we leased it out to. And in this case, it was Scandic. As Jonas has mentioned, we invest in mid-scale to upper upscale, which which provides us with a very large pool of potential acquisitions and also gives us the opportunity to move a hotel within these segments that gives us an additional tool when looking at a transaction. We're completely brand-agnostic, our current network gives us great data in order to see a future position of hotel and support our business model. But this is something that we constantly try to engage in new concepts, new operators and new brands in order to learn as much as possible when applying this into a transaction. So if we look at these 3 together, adding these 2 together, we have the ability to use all structures, both short term and long term. We have a wide array of segments to look at. And we have a strong network of operating partners, brands, managers, concepts. This gives us a very, very strong platform to execute a transaction from. But more importantly, it gives us options and flexibility both short term and long term. If we look at the 3 type of transactions, we look at tactical and tactical, strategic and transformative. Tactical being the single asset opportunistic transaction. A great example is the Scandic goal and Stockholm. But we could also be part of a wider strategy, which will come to next. Strategic could be a portfolio transaction into specific segment or market. In 2024, we acquired a portfolio of a part hotels on the Marriott brand residence, in London. Through this transaction, we entered a part hotel segment with scale, but also reinforced our presence in London. But this type can also be a wider strategy containing several single asset transactions. Recently, we have acquired [indiscernible] and Elite Hotel Kirana, part of our strategy for Northern Scandinavia called Scandinavia dreaming. So key markets in the high North have benefited from an increase in commercial demand generators, such as an increase in mining exploration, you have [indiscernible] expansion and you have the geopolitical case for the [indiscernible]. But these markets have also benefited from an increase in arctic tourism. That has also seen a great increase in last year. And the good thing about many of these markets is that Food and beverage is booming because you will not go looking for a restaurant in minus 20 in a blizzard pitch darkness in a mining town and the ones who do have problems you think because they can't feel their face because of the cold. The third type would be your transformative, large transactions and large impact transactions. Just recently, we did Dalata. We have done Jersey in 2017, and in 2010, we did the Nordic, the Rugani. If we look at the transaction philosophy or methodology. We have named it the 4 Ts, so type, team, trust and timing. And the type being the segment and structure. The hotel is within a target segment we like, a structure that we can -- that we like or we can move into. And also the type of return is there and the type of capital structure. The team, we have the right internal resources to carry out this deal. We have the right external resources. We have the right financing banks. We have the right adviser. So that is the second point of team. The trust represents our own ability to trust that we can execute this business plan but also our operating partner's ability to execute the business plan. Extremely important and it's also -- stems from experience and [indiscernible] cooperation. And the timing, we do like a situation where there are motivated sellers and fewer buyers. Timing also includes sort of available financing stage in the cycle and future projections and risks. So we have these 4 Ts. Shall we apply them for Dalata. If we look at the type, the full service segment. We like the markets, and we like the structure where we can move this hotel in team. We have the in-house knowledge of a transaction like that. We did it in 2017, and we based our methodology of doing Dalata on a 2017 deal of [indiscernible]. We had a strong advisory network coming from 2017 deal, but also we have the operator and brand network. The trust, first of all, about the mission is we believe in the mission, I guess. So trust through our past experience, we knew that we were capable of pulling a deal like this off technically. And we knew that our operator was available and able to do this type of transaction. The timing, it was a less crowded buying pool. There were some uncertainties in that time span. You had Liberation Day there, you also have a 12-day war in the Middle East. So that, in our view, benefited us by sort of narrowing down the buying pool. And for Dalata, we have the 5th T, that was our methodology in this deal, and that was true great. So thanks for that. That's from transactions.

Time flies. And so that's our time schedule. It is broken big time. So -- but I think we can accept that since we have a lot of sort of new and perhaps untested public speakers, and I think they have done a tremendous good job. Now we turn into a Q&A session for the first block. So we have no questions from the web as it looks right now, but perhaps in the audience. [Operator Instructions]. Fredric.

It seems like the Strasbourg Parliament, right? So going back to the cash earnings waterfall, you tried to explain the various parameters impacting the full year '26 of Dalata deal. A couple of questions related to that. First of all, you highlighted that this was specifically for 2026, which of those costs are temporary for '26 in isolation?

Everything that's related to the acquisition financing, I mean, remember, we did a great transaction. So the acquisition vehicle, the -- we talk about the accelerated write-offs, but of course, the underlying underlying financial cost we basically pay, I think it was like 1% on the full acquisition financing, which we actually write off within 1 year. Typically, when you do financing, you do it over 3 or 5 years, it's 1/5 of that number on a period as well. So annually, it's -- or Joakim, it's about SEK 100 million, SEK 90 million or so, SEK 90 million of cost that is not appearing when we refinance. Then, of course, you also refinance it at a higher LTV, but also with a lower margin because the -- again, the finance that we did was guide shares. So this was a great acquisition financing. We are really glad and it helped us to do this fantastic deal. But of course, we want to refinance it as soon as we can, and many of you are actually in [indiscernible], which we hope will be part of this. So that also takes down the sort of the underlying financial cost in that sense. When it comes to the Eiendomsspar's part, which is the actually 100 -- on the running rates about [ 104 ] linear which is 8% of the minority share. That will disappear the day we will refinance it with another low, which is medium term, whatever that will be [indiscernible] most likely.

And why did you have to change the accounting methology for the minority?

That's a good question for Anneli to answer.

I could just give you the easy answer, the auditors. No, we wasn't really aware of what the IFRS rules that apply, and it was basically based on the agreement that we did with Amba. So according to the IFRS rules, we had to change despite what we was planning for in Q3. So that's basically what happened.

And my final question relates to the loan-to-value ratio. It's somewhat higher than what we're accustomed to in the past, by the tail of last year, you talked about possibly selling a portfolio in the Nordics to tune of SEK 3 billion to SEK 5 billion. Has that been postponed? What's the reasoning for not having any updates on that?

We are working with it, it's in the process. We can't comment on specific. Of course, there are both headwinds and tailwinds, especially when it comes to the geopolitical system, a crisis. So -- but it is -- we are looking at different parts to it. But of course, it's more difficult we have secured the financing in the first quarter. So we have a comfortable liquidity reserve, which means that we don't need to sell or -- but we will, if there is sort of a good point. So it is ongoing, and we'll come back as soon as we know, [indiscernible].

So Stefan from SB1 Markets. A couple of questions on forward-looking capital allocation. Do you think it's likely that you will enter a new geography within, let's say, the next 2 to 3 years?

There is more than enough to do where we are. But typically, when you buy a portfolio, there could be sort of neighboring countries being. But we are -- we think there's a lot of opportunities where we are. We are in 11 countries. We've done most of our acquisitions now outside the Nordic. Love to do more things in Nordic, have been a little bit more expensive in the Nordic. And eventually, U.K. has been more of a transaction with market. More players, more things to do. Anders, we have acquired -- the lot that we acquired at [ 8.4 ] yield. We accorded was [ 8%, 9% ] yield. So yes, it's, of course, a reflection also of the higher interest rate environment, but more than enough to do also where we are.

And what is your view on exiting some markets? For example, you're quite small on some markets such as Switzerland, Netherlands, are you comfortable being small in some markets? Or how should we view that?

I think as we said in the presentation, as I said in the presentation, we are looking at asset by asset. So we don't -- as an operator, you get synergies by being sort of XYZ percentage in the country. Of course, there are fixed costs having 1 hotel in 1 country -- but if it's a lease with a partner we know, it's a good cash earnings, yes, you need to have sort of an auditor firm, something like that, but that's about it. So don't look at exiting just because we are small, but when we exited Canada, that was actually now, was it 3 years ago, 2 years ago. We had 2 hotels, that was a little bit small, a little bit too far away. And I think that was actually exactly the right moment to exit.

You highlighted in the presentation that you have a very good track record on doing high-yielding investments, but you have ultimate some divestments historically? Do you have sort of -- could you provide us some numbers of how you succeeded there, what's been like the average divestment yield historically?

We -- for the last -- since 2020, we divested for close to SEK 4 billion, SEK 3.8 billion. We actually divested 1 hotel in [indiscernible] the other day here. It's not as Major, it is small, small, small. And typically, that would be noncore sort of less future potential with exited win a there has been [indiscernible] Finland. So I don't have the exact number. I don't know looking at Jonas, sort of the exit yield for those, but it's basically been -- it improves our -- the rest of our portfolio, absolutely. And it also makes us not having to invest in technical infrastructure, et cetera, which would be the case. But we are also not afraid of actually selling disposing of something that would actually be a good asset as long as the price is right.

Okay. And the final question for me on financing, comparing bank margins in Sweden versus the U.K., listening to some conference calls from Swedish companies most listed real estate companies talk about stable bank margins. How has the development been in the U.K. And what is the cost difference in terms of bank margins in U.K. and Sweden?

I think the bank -- the bank margin, as Joakim said, has come down quite a lot. And -- but that's also a function of the pandemic the pre-pandemic margins were around 160 basis points or something like that, slightly lower in the Nordics, slightly higher in the outside. During the pandemic, went up to 250 or something like that. And now we are actually back to where it almost used to be prepandemic. We have a lot of our dear sort [indiscernible] going to say, but our Nordic banks following us up also out into U.K., Germany, et cetera. But the margins would be, I would say, you're working where you're sitting a few basis points but not significantly higher because, again, we have the same model with the same covenant structure. We have [indiscernible] guarantee, and we have our good friends with [indiscernible]. And Joakim wants to say one thing more.

Just to confirm what Liia said, I think you're spot on there. I mean prepone margins might have been slightly lower than what they are today, but we're having positive trend in constructive dialogues with all banks, and we're seeing lower margins. Of course, that is -- there is a need for us having a solid asset pool as certain security structure. So it needs to be well structured in order to achieve the best margins, but that's what we're doing now.

Yes. And as I said in the Q1, we had taken down the margins with an annual saving of SEK 90 million or so for the year, just by refinancing to our larger portfolios. And of course, that's also good because the base rates are what they are. We had some. There are some movement upwards. But again, we have been on a consistent 3.9%. It's actually 3.85% financing cost for more than [indiscernible].

Just on the theme of active management. Obviously, most of your investments are shared with operators. Can you just talk a bit more about how that conversation goes, how you decide with them what to do, what the typical disagreements, if indeed, you don't want to spend the money, the CapEx? So how do those conversations and agreements go?

Yes. I think we'll actually get back to quite of that in Tobias and Martin's presentation. So maybe we should wait for that because there will be a Q&A. And I don't want to sort of take out any of your presentation, if that's okay? Great.

And there are plenty of opportunities for more questions during the breakout sessions and join the tour and whatnot. So I think we have some catching up to do. So we will move on to the business area segment and we will start with Tobias Ekman, who is the Head of Asset Management Nordics.

Yes. Good morning, everyone. Great pleasure to be here. Contrary to Joakim and not that many familiar faces, so double pleasure to be here to take you into the breakdown and into the Nordic market. As Ander said, my name is Tobias Ekman, Head of the Asset Management team of the Nordic part of Pandox. Only been here at the company for 3.5 years. So a bit of the new kid on the block, still going on my fourth. The entire portfolio of 192 properties divided into 3 business areas. So we are 3 asset [indiscernible] for Asset Management. I will start with the Nordics. Strategically, you will have a little break in a few minutes after that, and then Martin and Aldert will take over as well. So zooming in again on the Nordic and giving you a bit of the feel for the status and the characteristics of the Nordic market, seen similar pictures, but again, now breaking it down into the 4 countries. So ahead of the Norwegian, Swedish, Finnish and Danish properties, we are still fairly large with 76 properties and total number of rooms, about 16,500. We have several partners, as you can see here on the next slide, you will see that Scandic for us as well is a big partner, but we have a total of 11 different companies that are -- that we partner up with as far as the lease agreements are concerned in the Nordics. This is the way that it is structured. So Scandic and the one Scandic [indiscernible] we have now takes 68% of our leases as far as number of rooms in the Nordics are concerned. Second is strobing, formerly known as Nordic Choice Hotels with different brands that we're working with both Clarion Comfort and the new home hotel brands and quality. We also have lease agreements with Radisson in the Nordics as well as Martin has a couple of them as well on Continental Europe. We also work with Elite Hotels and the third property now with the newly acquired Kiruna property that Jakob mentioned. As far as the geographical mix, Sweden is still the dominating part in the Nordics, so about half of -- roughly a little bit more than half of the portfolio in Sweden. Moving on and talking a little bit about the characteristics of the market. Now as most of you will probably know, the demand and the structure of the mid market is very domestic or intra-Nordic. We do have exceptions, of course, with the capital cities, especially Copenhagen and Stockholm, seeing a little bit more traffic on the international and more international demand. We do see that characteristic now coming into, as Jacob also mentioned, the very northern part of the Nordics, with Tromso with Kiruna with Levi and Rovaniemin Finland. So that's an interesting region for us to keep an eye on. It's a stable hotel market at the moment. very traditional, very strong lease market. We see extremely few other business models in our region. We have seen one example of a management agreement with Strawberry at the Sumare property in Oslo. There's another property opening up with Hoxton in the management agreement in Oslo, but very few exceptions like that. Otherwise, it's predominantly lease market. As far as the market trends are concerned, it is robust and it's reliable. We have had an extremely strong growth in Denmark and Norway, and I'll show you some RevPAR occurs here in a moment. There's been some very good growth in Sweden and some very positive forecasts as well and on the book situation now for Stockholm and Sweden moving forward. where we see as Norway is stabilizing at a high level but stabilizing a little bit after a very, very high increase during the last year. We also do see signs of pickup in Finland. This is the market that has been the toughest one coming back from the pandemic. And obviously, the closeness to Russia and the Asian [indiscernible] has been a bit of a struggle for Finland. We do see Finland ado, however, coming up over 60% occupancy rates and not the ADR just needs to come and follow. So we do see some positive signs from Finland during the last -- just the last few months. I will also comment a little bit on the limited supply pipeline. There's not a lot of new supply coming into the Nordic market either, which is good news and a good situation for us. So I'll get back to that shortly. The way that the portfolio is spread out over the Nordics is 40% in the capital cities, 30% regional and 30% domestic. So evenly spread out too. Just to give you -- a few a little taste, a little feel for some hotels in our [indiscernible] countries. Here are some examples, talking to the Swedish market, the 2 on the left-hand side here is Scandic Malm and Hilton Slussen in Central Stockholm, quite interesting Scandic moment just came out of renovation. We see that it's picking up really, really well after the repositioning we have made there for together with Scandic. Hilton Stockholm seen going into a huge project in a few months' time, also is going to be very interesting with the whole city project that's been going on around the hotel. So that's two big hotels in Gothenburg. We have Kirona that we mentioned. It will be a one-off here with the destination hotel with the Wild Life hotel, which is a little bit unusual in our portfolio, but run by Parks and Resorts next to Sweden's largest game reserve park. So it's doing also really, really well. A few examples as well in Finland, large properties in Helsinki big project going on right now at Grand Marina together with Scandic. So we are looking forward to finalizing that. Also, a couple of Hilton hotels here in Helsinki they actually scandic leases, but Scandic has a Hilton franchise. Again, just to give you a little flavor for the different properties. I'll switch quite quickly through this. Denmark, we're very concentrated in Copenhagen. We have one property out in [indiscernible]. The other properties are all 7 of them in and around the Copenhagen area. The big one in Copenhagen that was mentioned before, but also multi-mining and, for example, a couple of German operators that we have these agreements within in [indiscernible]. And finally, a few examples in in Norway. Recently acquired the Radisson Blue Tromso a year ago, January last year, has been performing phenomenally as well and great pleasure to work with Radisson there, an investment program also being set off now with sort [indiscernible]. A couple of great properties in Central Oslo. It's only also being a project going on renovation at the moment and repositioning. And I'll get into a little bit more how we approach that. So that's just a little glimpse of some of our properties. Market performance-wise, as I mentioned, I would just show you a slide of how the markets have evolved and this is from 2016 and back. And what's most notable here is probably to look at the Danish market, that was obviously the strongest before the pandemic was hit the hardest and went down the furthest, mainly also, of course, due to the international demand and in the international target groups that Copenhagen and Denmark has. But coming back and coming back strongly after that and continuously over the last couple of years, we've seen an incredible performance of the Danish market. you will shortly see as well the supply. There's been a lot of new supply, but that has been quickly absorbed on the Danish market as well with all the new rooms that has come in. Also, Norway is interesting to note that was actually on the lowest scale of the RevPAR of the 4 countries back in 2016, but has also come out of the pendemic very, very strong, is now in second place as far as RevPAR in euro is concerned here. Yes. Breaking on the growth map you saw Liia's picture similar for the entire Pandox markets. Sweden, again, being, of course, the largest one here. Clearly, you can see that on the market value. Looking back on the RevPAR CAGR for Sweden, it's been a stable 1.8%. We see, as I mentioned before, current trend, of increasing and very strong demand for the Swedish market, 4.2% in the last rolling 12. Of course, zooming down into Denmark, it doesn't look like much maybe with 2.2% over the last 10 years, but then you will also have to take consider the years during the pandemic that was sitting quite hard for Denmark. But the current trend is still extremely strong. Norway historically and recently in the last 12 months, also very strong. That high stabilizes and we've seen now is just a couple -- 2, 3 months, but it's again at a very high level. Yes. Moving on to also adding the -- what's happening on the supply side. This is to show how many rooms and how much supply has come into the different market during the last 10 years. So fairly low numbers for Oslo Malmo and Stockholm, and also actually very, very little more little supply coming into Stockholm and Oslo in the coming years. The 400 rooms that we are seeing coming into Stockholm, they are actually opening this year. And for '27 and '28, there's no pipeline whatsoever for new rooms in Stockholm. Similar in Oslo, it is the management agreement that I mentioned with the Hoxton opening in 2027 in Oslo. However, Copenhagen that has had a great growth and supply coming in, does see quite a lot more rooms coming in. These are including long stay consent like Locke and Bob W, for example. But it is quite a lot of room to [ 1,004 ] rooms coming in the coming years. Great. Moving over to investment opportunities and projects. Now this slide goes for all 3 of us in the business area managers, and this is the sort of method that we are using within Pandox to identify and also to how we go about seeing what opportunities are good when investing in our own and existing portfolio. So our job, obviously, is to look at the different opportunities and what kind of properties are are mature to do something. There are obviously some of them that have come up with lease agreement expiries that triggers a dialogue with the operator to say, "Would you like to stay in the property? And if they do, will discuss a joint investment program. Another important part is market share. If we see that the properties are lost market share or something else happened in the market, do we need to meet that? Do we need to do something as far as renovating existing rooms, adding new rooms, adding new meeting room capacity or something else. So that's for us to identify. Then we develop the investment case see if it meets the criteria. So if it is a good investment or not. And we internally offer an investment approval. After that, handing over to Michael and Michael will discuss -- we'll brief you a little bit more what happens with the project execution after that. And also just to give you some examples of projects that we have completed and some of them that are going on and some of that will start. This is the one that is completed a few years ago. So this is also actually one that we can do after calculation to see this does actually meet the business case that was set up. This is in Central Stockholm, the Scandic Park has been very successful, has a great location, rating here. It was an upcoming lease expiry, but it was also an outdated product that needed to to have a facelift. Since opening then, again, this is 3.5 or 4 years ago that this was finalized. RevPAR is up 23%. The rent growth for us is up also 23% and and property market value up 20%. So this has turned out to be a great project. More recent, as I also mentioned, Scandic [indiscernible], this was just finalized now during 2025. But we actually -- we see very quickly a great rise in rate and room revenue of this property. This was also triggered with the lease expiry and a joint investment program together with Scandic. And also going into the different properties, do we find -- can we find a underutilized space that we can commercialize. That's one of our main targets and always have the radar on for those kind of opportunities. Here, we found some -- and again, with the Swedish opportunity of building rooms in the basement and without windows, dark rooms, we have been able to add another 25 rooms to this property. I'll switch a little bit quickly because I know we are behind on time. Currently, right now, going on another interesting that we have used some pack of house base, the old night club has been turned into 24 -- 25 new rooms and then we found some housekeeping space and a total of 29 new rooms in Loulo. This is also a booming market up in the north of Sweden. We are already seeing -- we have not even opened the last section of this renovation, and we already see a great demand and great response from the market for this [indiscernible] it would be very nice to follow the finalization of this repositioning. And also, as I quickly mentioned, we are now in agreement with Hilton with a new release agreement with Hilton, not a franchise and Scandic as an operator, but directly with Hilton and an investment program that will be launched later this year for repositioning of Hilton Stockholm looking at a target yield on cost of about 8% and some good average rate increases for this property. Last also down in Malmo, and this is also another case of finding space, not all dark rooms, but we do have quite a lot of other tenants in some of our properties, and this is a shot on the first floor and on sports that has now been turned into 37 new rooms, and then we found a few more rooms up on the different floors as well. So we're adding another 45 rooms here. Again, something that we always look at and see going around and also the property people are very good at looking at underutilized space and how we can develop that. Good. Just have a few conclusions then. For the Nordic market, it's a strong position in a core lease market. This is also the way we like to have it. We do get questions quite often if we would like to go into the different kind of business models. But we're very comfortable with this and it is a very stable environment to -- with the lease agreements. Profitable investment projects, as you saw, and to be very sort of focused on finding these opportunities and these projects and also, as you can see, a fairly limited amount of new hotel rooms coming into our market.

Add how much tenant's part investment for us a little bit related to the question on how we work with it.

Yes. And the boring answer is, it depends. So it's always different. If a thumb rule could be that normally we do have because we do have a little bit more sort of expensive parts. So if it's roofing or changing our windows, facade et cetera. So it depends a little bit on the characteristics of the project. but then we would traditionally have a little bit more than they do, maybe 60-40, but we have actually a few projects that the tenant will have more investments than we do. And if it's more of a soft refurb and our bathrooms are already in good shape, then the tenant will redo the hotel rooms and the corridors, then they will invest more than we do. So it is actually not an exact figure. It will be case by case to see exactly what we need to do. The most important dialogue with the operator is what shall we do? How do we reposition? Do you need more rooms? Do you need more -- do you need a pool area, spa area, conference space, et cetera. So once we decide that, we go into the demarcation list and we do the investments together. Not a very exact answer. All right. So with that heading into a break, right?

I ask for your cooperation and your patience and your understanding that we will cut the break to 10 minutes. So back here at 10:35 for a restart. Thank you. [Break]

Okay. Thank you, everyone. Now we're back, and we will continue with the business area section. And the next in line is Martin Creydt, who is the Head of Asset Management International. Please, Martin.

Thank you. I'm thrilled and proud to present the international part of Pandox. And maybe the most international profile guy also here in this audience. Born in South Korea and fostered by the German mother and now [indiscernible] the Pandox culture for 10 years. So Actually, my former previous Pandox, I was the former CEO of Scandic Group. So I had a hot battle, I remember with some of the -- Pandox guys. So I decided instead of I couldn't beat them, I joined them. So as we have mentioned many times already, this portfolio has grown quite significantly. When I started 10 years ago, we had actually only -- we had 18 hotels in Germany and one hotel in Switzerland. So with 19 hotels in 2 countries. And now 10 years later, we have yes, in 7 countries, 20,700 rooms and 95 properties. And the amount of room is more or less representing half of the whole Pandox capacity. As you can see also here, we work with all the leading brands and strong partners. We can underline it many times, strong partner, strong performance. It's very important to understand this because in the huge market, which I can show you a little bit later, is all often numbers average of the averages, and we are, of course, not an average company. We are high performing. We want to aim incremental values, drive cash flow and of course, that needs strong partners. The biggest partner we have in this business area is Fatal Hotel. They have grown tremendously also side-by-side with us and is now the largest partner with us. And we have 39 properties of them in Germany and U.K., Ireland. And a big runner up, of course, is now, as we mentioned, quite many times now, the Dalata Hotel Group which is now represented by Scandic ownership very soon. And we call out 31 properties of this group into this business area. And together with the property in Nurnberg, we have 32 properties for that partner. And the split of the markets, we see now U.K. and Germany is same in amount of rooms, but a bit later, you will see that U.K. is, of course, larger in property value. The balanced mix of capital and domestic cities and renal hubs is more or less the same, and it's very good that we not proceed as we only want to have hotel and properties in the capital. Of course, it's -- can make a little extra bus when we really buy hotels, for example, in London. But our bread and butter, and it's important, our bread and butter is in all areas. That's really important. I mean money is as good in domestic cities as good as in capital if it comes to good returns. I will guide you through very quickly the 3 markets which are the largest, and we start with Germany. Germany has more or less 1 million hotel rooms. It's the largest hotel market in Europe after France, Italy and Spain. But it's a market which is very well balanced between corporate and domestic and corporate and leisure and an extra bonus is this fair segment, which is huge in Germany. You have to have a bit of a good control. When this tariffs, for example, in Dusadof, in a month, a big fair in [indiscernible] can differ the revenue and the RevPAR with double-digit -- high double-digit numbers. 20, 30, 40 percentage, it can even impact the whole quarter for that destination. So that is really good as an extra bonus for Germany. And the domestic business, of course, is based a lot on corporate strong corporate business, but also on domestic. Just as a clarity, you know how many churches are in Germany, too many. And together with 20,000 castles, there is always a reason to visit as a tourist in the domestic areas in Germany. This is very good. You can see the large cities from our portfolio is represented over 50 partners and the rest, very well balanced between regional hubs and domestic cities. Just a flavor of some of the big hotels in Germany. The flagship upper left, the Leonard Real Frankfurt, just newly renovated, great, great hotel and also the Nurnberg, as Jacob mentioned, about 300-rooms hotel and now actually high performing, which is really good to see. Then we come to U.K. U.K. is directly after Germany, the fifth largest hotel market in Europe and with over 800,000 rooms, of course, it's a huge market. But what is extra fascinating is that, of course, London is really the prominent and, I would say, an extra highlighted market in itself, with over 150,000 rooms for a moment, I say for a moment because it's growing year-by-year always. And, just to give you a little flavor of what different maybe U.K. from other markets is that it's a really strong regional business here in the U.K. Outside London, for example, when corona just was closed down, and we opened up again. I remember the Prime Minister, Boris Sansa said, let's -- let's open up the country. And within 6 months, the country were more or less back to normal numbers. We were quite fascinating. It was the fastest, let's say, ramp-up market after Corona. Also stable domestic business everyone who's interest of sports and football understand as soon Premium League matches in one city is fully, so large. So this is really interesting. And here, we can see that 25% of our portfolio is 7 hotels are represented in the capital in London and the rest equally divided by regional hubs and domestic cities. Here was a flavor of some of the U.K. properties. We have the flagship Leornardo Royal Birmingham, also renovated during the Corona years, high performing and also just as a nice comment, the Epic iconic building the Midland Manchester with 300 rooms, fantastic hotel, full service, including spa business. And then also the Leornardo Royal on Waterfront, I would say, also very good. That was the highest occupancy in the whole entire portfolio in U.K. during the corona years. So it's really good to have some resort at least oriented hotels at that time. And then the new big, I would say, kid on the block, Ireland. I say small is beautiful because it's a small country, relatively small. 5 million at Denmark, but a lot of hotel rooms. Over 150,000 and [indiscernible] with the Irish market [indiscernible] is in Dublin. And that's why we are so glad to have many hotels in Dublin as well. What is fascinating with that Dublin is that this is also a result of actually a government decision 20 years ago. Still remember, the government started to invest in travel and tours for Ireland. And they even have had a Minister role for tourists, quite fascinating. It was Italy and Ireland. The result we see today. It's one of the highest occupancy and a lot of compression nights last decade. And the airport has also been a success story from, I would say, an average regional airport into this prominent airport with over 30 million in passenger amounts. And the reason why it wouldn't be more was it was a cap for the airport, which has now been released, taken away for a moment. And there's a forecast and outlook that it can be reaching up to 40 million in assumed time. And here you see our portfolio is resetted by 2/3 of the whole portfolio. We have 24 hotels now in on Ireland and 2/3 of them are in Dublin or Dublin area and the rest is in [indiscernible] hubs. Forgive me, those from Ireland, but the domestic cities are quite limited and small. Portu and Sligo, yes, we can find them, but it's it's not so many of them. Here, we have some wonderful examples of the properties on Ireland. The former lady school actually from last century, Clayton Borsbridge, Dublin, upper left. And in contrast, the big power machine, the flagship Clayton Hotel Dublin Airport. [indiscernible] seem to remember when Jonas informed me about this portfolio and he said, Martin, only in parking income for the parking area is EUR 4.5 million just for the parking area is fantastic. I get religious. Okay. A very important slide to sum up more or less the whole market here. You have quite different performance levels. But don't misunderstand, when you see minus 1 in Germany, as I mentioned in the previous pages, minus 1 doesn't mean that we have minus 1 because we work with the strongest partners. And I can just assure you that it's above one at least. And that is really important to understand because when a big market statistics presented to you, you must also understand, Okay, but what are -- what is Pandox or what is the Pandox actually performing? And then you will see other figures. And in this case, we often understand that we are above and beyond the the average numbers, which is, of course, very good. But of course, it helped when the market is, let's say, strong and booming. And we have seen it, of course, in U.K. as well on Ireland in the last years. And even volume has also been very good. Last couple -- not now for a moment, but but lately, and we hope it will be better. An extra comment for Germany is also that the last couple of months, we have getting informed that huge, huge investments coming to you, Germany. From the government decision, with everything from military defers to infrastructure projects. And that, of course, will boost both the hotel market, but especially our business. The big impact of RevPAR performance is, of course, how much supply is coming in, in the market. And as you can see here, there's been quite a lot of supply coming in. the last decade. And luckily, we see now a more modest supply increase this year and next year. So we are quite, I would say, we are confident that this will be -- help a little also the German market to come back to a little higher numbers. And especially Hamburg and Berlin that is representing these supplies. U.K. it has also been a little lower numbers in the past, but for a moment, is then, of course, increasing quite especially next year, but very temporary because then we see it's going down again. All these numbers are from STR Costar. So it's official numbers. And the main driver for this is, of course, U.K. [indiscernible]. I mean London with almost 2/3 of the room increase. So we think [indiscernible] can solve this they have done it before, so no problem. And Ireland, worth an extra comment. You see quite a little top next year, 6 percentage and then it's going down again. But on a 3 years, I would say, period, we foresee around 2,000 to 2,500 rooms, and almost everything is in Dublin per year. You can see here. So this number is representing a 3 years period. So you have to divide it by 3 and then, of course, including the circle area, it is a little lower and that you can see on the next page, where Dublin is 15% in total for 3 years. Can Dublin absolve that? Absolutely. As Jonas also mentioned there was so many compression nights. So these rooms will more create just a larger market. And this is important. Hotel market is one of the few markets where you can really create or build a greater market by more supply, which we have seen so many times in London, Berlin and other places. So now we come to the heart and soul of actually as asset managers are doing, and that is the focus on a daily basis to try to find where can we find opportunities to invest and create more cash flow. Here's a wonder for example. Goldway had very high capacity, but the rate was not moving so fast that it should or could be expected. So we discussed with our partner, Leonardo come into repositioning of the hotel into premium product, putting in ACS, we can get the high-paying American guests there, and we did it. And you see after this investment, just a couple of years after we saw the RevPAR is up almost 30%, and the property value likewise, even more. A fantastic project not a dry eye. The same with Baden-Baden, fantastic. Here, it was an open position because there was so many luxury hotels, and we are -- we like luxury hotels, but not maybe to invest in them. And these hotels, they performed, of course, with very high rates. We talk about EUR 300. And then there were the ordinary, let's say, business [indiscernible] like this one. So there was an open position to be [indiscernible], not a luxury, but a full service. And after a couple of years, we see also here fantastic RevPAR growth, almost 50 percentage is amazing. Just a little hint or recommendation. If you get around 10% to 15% as RevPAR increase, you get back the money and you can even increase the right value. So that is a good, at least cases. And the property value up 22 percentage. And finally, we did just complete Dublin crisis last year, and we already see just in the year start even ended. I mean just the first half year, we see already RevPAR with this 14 percentage. So this is actually what we should do even more. And it depends on, of course, which partner we are talking with. And I can assure you, there are very different type of conversations we have with all these partners. But end of the day, our ambition is to convince ourselves, but also the partners to invest in the right opportunities. And for a moment, we have 3 launched projects together with Leonardo, where we have these two 1st hotels Leonardo and Leonardo Inverness with extension opportunities. Of course, as you can understand, great opportunity to drive cash flow even more. And I'll give you just one example how we actually in practice, recognize these opportunities. I must have an empty corner here. One could misunderstand maybe that when they built the hotel, the money was out, so they couldn't complete the corner. So it was an empty space. And instead of just leaving like that, Lars Haggstrom, who is somewhere, our senior [ folks ], who is really one of the most experienced guy I know, he and I will just walk around the hotel and say, here, we can find 8 rooms. And then we added on 8 rooms on already an existing investment program. This is the way of how Pandox is finding out and sniffking around new opportunities to drive cash flow, more cash flow. And finally, we had this privilege to [ heritage 2 ] exciting projects. Michael will talk more about that. Clayton Edinburgh, a full conversion from an exclusive office building into this new flagship hotel in the heart of Edinburgh, just neighbor with [ Louis Vuitton ] boutique. So it's, again, best location in this city. And the Clayton [indiscernible] Lane an extension project, which, of course, will boost and drive more cash flow for Pandox. To conclude, active ownership makes the difference and large pipeline of potential projects, yes, we have just started. and potential to increase performance of the [indiscernible] deal. Yes, there is so much more to leverage on. Thank you very much. And I have the honor to hand over to my dear best friend in [indiscernible].

Thank you, Martin. Good morning, three more speakers. So 12:00 should still be feasible. I look at other colleagues. We need to keep it short. My name is Aldert Schaaphok. I'm with Pandox just over 20 years. So having a lot of fun over all these years. I'm heading own operations. And own operations is not because it's a hobby or because we like it. But I think as active owner, it's a necessity. Over the years, we have acquired properties, leased them out, sold them. So it is a tool to create value, and it is a tool to quickly turn around and develop properties. You will see we have 21 hotels in 5 countries. There's a quite equal mix between Germany, U.K. and Belgium. And I would say that all properties that we've acquired, maybe except the 3 residents in London were underperforming. And you can see here the mix in brands. So in own operations, we have the privilege of looking deep into the kitchen of the big brands. As you can see here, 4 out of the industry's 5 leading brands we have hotels with. Hilton, Marriott, IHG and [ Accor ]. The fifth leading player would be [ Wyndham ]. We don't have Wyndham hotels, if I'm correct. And we have a few independent properties. As you can see, 65% of those properties are in international/capital cities with strong business demand. Hotels are underperforming for several reasons, either management lack of focus, wrong brand, lack of investment, poor marketing. If you take over one of those properties, it's often all of the above. It's never 1 or 2 things. It's often a combination of most factors. Here, you've seen this slide many times before. Like Martin said, this is not necessarily the current trend, how we are performing. This is an STR statistics. I would say we outperform most of these, if not all markets in our hotels. Brussels is a key destination. We own 9 properties in that city, 4 are leased, 5 we own in own operation. It's a very bureaucratic city. Of course, you're all aware. With the NATO now in a brilliant new office building, the European Union, many countries have 3 embassies in the city. A bilateral one, an EU one and a NATO one. So that's where all the tax money goes. And so not much is happening in Brussels without us being involved, being aware, or at least take a piece of the action. A few years ago, the city has drastically reorganized the city center by taking out cars. So a large part is now pedestrian. And that's why we see an increase in leisure demand, and the leisure segment is now outgrowing the business segment. Of course, the business segment is 4 days a week, 220 days a year. So if you would run that at 95% occupancy, then you would end up at the 75% occupancy year-round. So a very important city for us. 22,000 rooms in the city and quite limited future growth, except for the airport, where, of course, due to the new NATO head office, the old offices are being redeveloped, and there will be a massive increase in office capacity. These are the hotels in Belgium. Not much to say. Great performing properties, different brands, the hotel being independent. The hotel is the leading hotel for international delegations, which, of course, we have a lot. So every U.S. President delegation stays in the hotel. We've had a lot of presidents, including Obama, not Donald Trump. He stays at the Embassy. So performing very strong. The U.K., also a lot of big boxes. The U.K. is a very strong domestic market also. Cities like [indiscernible], Glasgow, Leeds, they perform Belfast. They perform in itself very well and do not suffer that much of what's going on internationally. Germany, 5 hotels, all good examples of underperforming properties that we acquired and turned around. Of course, Hotel Berlin, Berlin with 700 rooms is the third largest property in Berlin and one in the Netherlands. I am from the Netherlands, so I wish we have more hotels in the Netherlands, but might come. Of course, in own operations, it's all about managing hotel performance. This is the only thing where this is about. And that means, first and foremost, profitable operations. That means that you need to have the right hotel product that seems obvious, but that is not always a given. And the two second most important elements is driving revenues, get heads in beds and fill seats to meet, and drive productivity that you have the right resources allocated constantly to the right business in-house. And there are two areas that we have our main focus on. There is, of course, distribution. Distribution is now so much technical that you cannot do without sophisticated systems, software and brilliant tech nerds, I would say. You cannot leave it up to the traditional hotel professionals because they don't understand anymore what's going out there. So we created our own revenue management center some years back. And second of all is how will the hotel be run. And if you look at running hotels, we can either do it ourselves. If we don't get the right conditions, if we don't get the right agreement, if we don't get the right lease agreement, we can always say, okay, forget it, we do it ourselves, and we step in and we take over. Or what is the case in the U.K., where Axiom is running our 9 hotels, we acquired at a certain moment a portfolio. There were too many hotels at the same time spread out over the country. So it was the right choice to sign a management agreement with Axiom, and then we managed the manager. Later on, we added 2 more hotels to their platform just to make our life easier and because they have deeper knowledge in the U.K. than we have. From a distribution perspective, we have also created our own brands like the hotel that used to be a Hilton. We couldn't come to an agreement with Hilton. So we then said, take the sign off the roof and we create something ourselves. Or we use an external brand and we sign a franchise. So we have franchise with [ Accor ], Hilton, all the brands that you saw on other slides. So the discussion, once we acquire an underperforming property, shall it be a brand or independent is we take a deep dive and unravel the market where we are going into. And we scan all the hotels in the market. We look at public price setting of these hotels and review ranking. There's a direct correlation between review ranking and prices people are willing to pay. If you go on booking for a weekend away, you will most likely not choose a hotel that has a [ 7.8 ], where if you pay EUR 40 more, you can have a hotel that scores a review ranking of 8.3 or higher. So there's a direct correlation. And then, of course, we design the perfect comp set, competition set and then we decide what would be the ideal niche for this property. And then you decide, do we sign a brand based on which brands are already present or not. If there are already 6 Hiltons, or Hilton branded properties, I think it's not good that you are the seventh, maybe it's better to be the second Marriott in that destination. Productivity management intelligence is a system that we use and everything is linked to this platform. Everything is automated, all data in terms of reservations, P&L, green data like food waste, linen usage, water consumption, everything goes into this system. It's fully automated. It takes the data from different sources and put it in a platform and in a dashboard overnight. So we could not run hotels without this. So this is the first system we hook the hotels on. It makes it transparent. It made it controllable, manageable. Of course, AI. We cannot not talk about AI. It is going faster than sometimes you wish. We have now installed our own AI agent called [ Cassandra ]. And let's say, monthly reporting comments on monthly performance is now 75% to 80% AI-driven. And it's not a dashboard. It's not you throw numbers in it, you get numbers back, but it talks back to you in a story with graphs and pictures. So very user-friendly at individual hotel level. And there's no more personal stomach feeling, things like, yes, it was a very rainy month. Or last year, there was a big conference that we didn't have this year. It's really data analytics in an objective manner. So some of the projects we have completed. A good example is of us creating value through own operations is the [ Citybox ] in Brussels. We bought it in 2022 from NH. We then were in talks with [indiscernible] no, sorry, [ Citybox ] as a candidate tenant, but that's a model that is fully app-driven. So there's no staff. There's maybe one host per 8-hour shift. So we had to make the full staff of 35 people redundant. So we had to close the hotel. We laid off 5 and the other 30, we incorporated in our other hotels in the city with a very small P&L effect for the first year. Then we did a full refurbishment and signed a lease with Citybox, great location. We ourselves were, or are still, amazed how good that hotel is performing. And this model with keyless entry, no staff, you would say that's impossible, but it works very, very well. And there's a large target audience out there that doesn't care about this personal interaction. They want to key go to the room and do the thing. So very successful. Another one which was already addressed twice is the Scandic in [ Nurembeg ]. We acquired that in 2019 from [indiscernible]. By the way, both properties totally run down. I've seen some bad properties, but this [indiscernible] hotel was really run down. As I say, you would not want to be found that in one of those rooms. So we did a full renovation and signed a new lease with Scandic and the hotel is absolutely back on its feet in good shape. Some projects, and Michael, he will talk some more about it, so I can keep it very short. The big project we are running right now is the extension of the [ Double Tree ] in Brussels, which goes from 350 to 500 rooms. We add 600 guests purpose-built pillar 3 ballroom, will be the largest ballroom in the city. Meetings is a big piece of the business in Brussels, of course. And we will invest EUR 56 million and will be finished mid next year. Mayfair, Copenhagen, also an interesting project that will become [indiscernible]. The job will be done end of this year after investment of [ DKK 160 million ], also a great example of turning around the property and give it a new life with a new brand and a new agreement. So to conclude, I think we have a very strong operational platform. We are active, knowledgeable owners. We have deep knowledge of how the other brands are performing, where their weaknesses are, where their strengths are. We have a beautifully diverse brand and operational portfolio. So we are, I would say, playing all areas, and we have strong partnerships. Thank you.

Okay. So now it's time for Q&A. I hope you have questions or rather not because we are running out of time now. So please shoot the questions if you have any at this point. You're doing a good job. So then we will move on, and you can catch these guys later. They have a lot of stories to tell about running operations and transforming assets. So take the opportunity to ask them questions when you see them in other context. So with this, we will move on to the Property Management segment, including sustainability. And I would like to introduce [indiscernible].

Thank you so much, Anders. My name is [ Mikael Hultqvist ]. I'm the Head of the Property Management team at Pandox. I've just recently celebrated my first year anniversary. So I've been to Pandox for 1 year, a fantastic year. I will pick up a couple of questions or quite many questions that have been addressed earlier in the session this morning. Pandox portfolio consists at the moment of 192 properties. 31 of these properties is -- has been brought into the portfolio and the [indiscernible] deal that has been brought up several times this morning. I would like to take the opportunity to address all credits to the [ Dalata ] team, these -- all these -- I have actually been to all the properties, all the 31 properties, plus the 32nd one, which will be completed later this year. I'll come back to that later this. I've been to all the properties, and they are all fantastic hotels and properties. Really, really, really well taken care of the portfolio and all the setup of the projects that are going on and has been completed. We are represented in 90 cities. This will -- the total number of rooms is 42,500, which gives us an average of 221 rooms in [indiscernible] hotel. We have talked about being an active owner a couple of times this morning. I give you an example of that, we renovate approximately 2,000 rooms on an annual basis. Just in the 2025, we did renovate 2,200 rooms just 2025, which gives us an average of 6 bathrooms per day. We do have -- our CapEx responsibility varies across the portfolio and geographies. 13% of our rooms is within the own operations where we have the full CapEx responsibility. 31% of the rooms is within leases in the Nordics, where we have a shared responsibility, CapEx responsibility with our operator. But almost 50% of the rooms is within leases outside of the Nordics in Europe, where we have very limited CapEx responsibility. In those hotels and properties, most of the responsibility is on the operator. We are within the property management team, a project-driven organization. It's a lot up to execute investments and projects. Therefore, the organization and keeping that clear and having a game plan on setting up projects is really important. All the property-related responsibilities is gathered within the property management team regardless of geography, business area and business segment. These regions is divided into 3. We have the Nordics, we have the U.K., Ireland, and we have the Central Europe. Central Europe being the [ DACH ] and the Benelux areas. Each and every one of these are led by a Vice President with a full responsibility. This altogether gives us -- gives us clear ownership and it gives us local presence in the local markets. And maybe most important, a common way of working. It shouldn't matter if we do things or execute projects in the U.K., in the DACH area or in the Nordics. It should be similar to each other. We do have a strong competence. It's important to keep structure. We are multiskilled, and we have high competence. We do want to work in a long-term relation with our collaboration partners, and we do want to keep continuously doing the same thing. Therefore, we need to be and we are scalable when it comes to the setup and the organization. We deliver our projects with structure planning with continuous follow-up, which gives us better control, better quality and maybe most important, a high project execution. I mean we want to be in a high pace due to minimize the disturbance within the operations. It was mentioned before, our model on investments, [ Tobias ] showed it, but he also mentioned that it goes for all the business areas. We do have a model that makes sure we are integrated and jointly setting up the investments in the early phase, and we collaborate -- we work jointly together internally from the [indiscernible] to fully execution. As from the property management team, we are involved when setting up and developing the business case. And after the investment being approved, we have a handover, or a handover is taking place where the responsibility is moved over to the property management to plan, set up and execute the projects. As Liia mentioned earlier, we choose to box or divide our investment projects into 3 categories. We have the transformational ones, which are -- which tend to be larger and include the repositioning and extension and the conversions. I will come back to a couple of examples within the transformational project and investments. We have the replacement and renewal ones, which tend to be the bigger volume when it comes to the amount of projects, normally being slower -- sorry, not slower, smaller and shorter in time, including the refurbishments and the project upgrades. Last but not least, absolutely not least, the resilience ones, which include the sustainability one. And I want to say also that the sustainability agenda is included already when we develop the business cases at an early stage and therefore, included in the others -- all the other projects. Caroline will take over after me here, and she will explain this more deeply. As also Liia mentioned before, we have a large amount of ongoing and planned projects. We do have 49 projects ongoing or planned at the moment in 8 different countries. It has also been -- the question has been raised about us sharing the investments with our operator that goes for many of these. I'll come back to a couple of examples. It goes for many of these 49 planned and approved investments. This accumulates to a total number of SEK 4.2 billion, SEK 1.5 billion of those being already spent. Most of the SEK 4.2 billion are being spent or being planned to spend within 2026 and 2027. A big value creator, a big value adder is creating new rooms. And within this pipeline of SEK 4.2 billion, we are adding 600 new rooms only in the period of 2026 to 2027 in existing hotels and therefore, in the existing portfolio. This is an accelerating number. We are accelerating the room growth within the existing portfolio. To give an example of that, we did add approximately 750 rooms that was also mentioned earlier this morning, another 750 rooms approximately in the period of 2014 to 2025. The same figure for 2026 and 2027 only those 2 years is plus 600 rooms. This has been mentioned before. A couple of examples of these plus 600 rooms are, as [ Tobias ] mentioned, 45 additional rooms in Scandic [indiscernible], plus 172 rooms in Clayton, Edinburgh, 150 new room by extending the Clayton Hotel Cardiff Lane in Dublin City Center. And our largest project ongoing is our extension, which Aldert mentioned before, our extension of the [ DoubleTree ] by Hilton in Brussels City, adding another 150 rooms being completed in 2027. A bit deeper in a couple of these projects. I would say these fantastic projects. The first two ones is being added to our pipeline or ongoing projects from [ Dalata ]. They're both phenomenal setups. Clayton Hotel Edinburgh, fantastic project, converting and extending a fantastic old office building into a new hotel existing of -- or consisting of 172 new rooms to a budget of GBP 40 million, being completed at the end of this year, Q4 2026. The sample rooms have been already been ready, fantastic rooms. Another example is the double -- sorry, the Dublin City Center, the Clayton [ Cardif ] Lane being extended with another 150 new rooms, extending the existing hotel, a budget of EUR 25 million being completed in 1 year, Q2 2027. The building structure has just started and the key procurement has been completed. And again, the last transformational example of the ongoing projects. Our biggest project at the moment, the extension of the [ DoubleTree ] by Hilton in Brussels City. Extending the hotel with another 150 new rooms and a 600 rooms, or 600 guest new ballroom to a budget of EUR 56 million being completed in 2027. Renewal and replacement example. We are converting at the moment, converting our basement in [ Radisson ] Blue Glasgow to a spa to 2,400 square meter new spa, to a budget of GBP 6 million being completed at half year this year. And to give you an example, a smaller version though, also a project where we split and invest jointly with our operator is the [ Scandic Alvi ] being completed earlier this year. We did have an original budget of SEK 43 million. We were able to hit 16% under spend with a finalized cost of SEK 36 million, adding 6 new rooms and renovating all the bathrooms in the hotel. Concluding this from a property management perspective. We do have a strong pipeline of investments and investment projects in key markets. We do have the team and structure in place to deliver on that to embrace the [ Dalata ] and to deliver on that project and all the other projects in the pipeline. We are -- we do work with structure planning. We do work with continuous follow-up, which drives better quality control. And as I said before, maybe most important, high project -- faster project execution and a high pace when doing and executing the investment projects due to minimize the operational disturbances. By that, I will hand over to our Sustainability Director, Caroline.

Thank you very much. The final but very important piece of the puzzle to ensure that our properties are resilient and future-proof is sustainability. And my name is, as Michael said, Caroline Tiveus, and I'm Director of Sustainable Business. At Pandox since 8 years now. And our value creation strategy is built around 5 focus areas, applied differently across our 2 business segments, leases and own operation. In own operations, we hold a full responsibility for the property, including both operations and the building. This covers areas as diversity and inclusion, health, waste, procurement, you name it. It's also about energy sources, energy efficiency, et cetera. And in the lease part of the segment, we focus on areas linked to the property's structural and energy performance, and that's about energy sources, energy efficiency, technical installations. And since -- and this presentation will focus on the environmental and climate part. And since 2019, we have used green investment programs to earmark investments and demonstrate how sustainability actually drives business value. The first program in 2019, the Green 1.0 covered 12 hotels of a total investment of EUR 8 million, generating an ROI of 28%, an annual savings of approximately 2,400 tonnes of CO2. The second program that we launched during the pandemic covered additional 4 properties of a total investment of EUR 1.2 million. And there, we had an ROI of 25% and saved 420 tonnes of CO2 per year. And the investment programs have enabled Pandox to identify projects with high returns and low risk, improve cash flow through cost savings, and transition the property towards much more cleaner energy. As a result, we have been able to link approximately 40% of our loan portfolio to sustainability-linked financing. And all of this that I've been talking about have led for us to set the science-based targets. To be able to do that, you need to have a data-driven approach, which Pandox has. We have our data in order. We are [ automizing ] it, so you need to understand your baseline. And we set quite ambitious targets, which comprise of in Scope 3, our indirect emissions in the leased segment, we should reduce the CO2 emissions with 25%. And in own operations, we should reduce the CO2 emissions with 42%. And there, we have the direct emissions full control. And the road map then for owned operations, 42%, comprised of -- wait, I will take -- sorry. Now it's linked. We put together in -- to reach this 42%. We put together an investment program, the third that we have of 13 properties and an investment of EUR 29 million. And we estimate savings of 4,900 tonnes of CO2 per year, and an estimated ROI on 10%. The reason why it's 10% here, not 25% is that we will have much more heavy CapEx investment this time. The first programs were more the low-hanging fruit, I would say. But to really transition the property, we need to take the next step. And also, as you see here, phase out gas. So we have divided that 42% in 22% to phase out gas and implement heat pumps. 5% is from automization and AI, and we are trialing actually right now AI agents to give advice on each property and how to manage it. But we also need our employees that they can manage the properties, the smart buildings we are actually creating. So it's a lot of training going on here to achieve the targets. And then if we look at leases, 25%. This is actually the heavy part because here, we are dependent of our tenants to succeed. And the 25% should come from the energy used by the tenants, so they need to be on board, and also material used in renovations. As you heard from Mikael, we have our over 2,000 bathroom renovation each year. So we have pilot projects also here. And what we focus on when we do the prioritization with an ESG perspective, or ESG hat on us, we focus on the [indiscernible] markets. And with that, we mean for example, Germany and U.K. because that each kilowatt of electricity use results in, for example, 278 grams of CO2 in emissions. If you compare to Sweden, it's much more cleaner electricity grid. We have also built a model with a portfolio-wide energy and technical assessment to map our assets and establish a robust climate transition plan. The model incorporates also the responsibility split between the landlord and tenant. It also quantifies the potential cost savings and the climate impact that we share with our tenants to make them on board on this journey. And here, you see an example of a collaboration we have with our tenant, Leonardo. Exactly. I can take this first one. That also you talked about before, Martin. Leonardo [indiscernible], Leonard [ Ines ] and Leonardo [ Leeds ]. We are looking at a bathroom concept. We will replace gas with heat pumps, and we are looking to integrate BMS systems with a heating system, and evaluating solar panels. We are also putting a next layer on this assessment we do when prioritizing ESG projects. We are, of course -- now, it's not linked. Okay. It's the wrong. We are obliged to compile with the Energy Performance of Building Directive in Europe that stipulates that how efficient in energy the property should be. And of course, we take that into account also when we look at the properties. And also, we are looking at climate risk when also evaluating our properties and do the prioritization. So another example is in [indiscernible], where we carried out a pilot project at Scandic, installing both solar panels and battery storage, and that's totally new for us. So it's very interesting and a new technology. And the project has been very beneficial for us and the tenant with an ROI of 8.3%. And for our tenants, they have been able to replace approximately 15% of its energy consumption with solar energy through a power purchase agreement with us. And also the EPC level has gone from a E to D, probably a C now with the updated methodology in EPC. Yes. And to conclude then, sustainability at Pandox is fundamentally about value creation. By focusing on cash flow positive investment through energy savings and operational efficiency, sustainability has become embedded in how we invest, operate and finance the portfolio. And as you see here, the proof is tangible. 60% of our CapEx is actually aligned with a very hard EU taxonomy directive. And we have a robust green investment program in place. And last but not least, 40% of our portfolio is linked to sustainability-linked loans. And this integrated approach strengthen cash flow, reduces risk and position Pandox as a more resilient and future-proof company. Thank you.

Exactly. So are there any questions to Michael and to Caroline? I guess not. Then we move on to the bonus part. We saved the best to last. And that is Christian Ringnes.

Welcome, everyone. Great to have you here. Anders is supposed to ask me questions, but it isn't really necessary because I know in advance what he is going to ask me. But if you want to do it, you can.

I will do that. I didn't want to steal the stage from you. We have a couple of questions of fundamental and sort of financial character. And the first one is, what is your assessment of Pandox performance since [indiscernible] became owners in 2003 and especially after the relisting of Pandox in 2015?

Okay. So we entered into Pandox 7 years after its foundation in 2003. That first period from 2003 to the relisting in 2015 was [ paradise ] years. It was amazing. We bought it. We sold some of the properties, got all our money back, invested in [indiscernible], which was a super investment with a perfect timing just after the financial crisis. These were the fantastic years. I'm not going to talk anything more about that because they are not really relevant. Interest rates were falling quickly. We had all the wind in the back. So then from 2015 onwards, we have 2 -- divided it into 2 periods. It was the wonderful years and the horrible years. The wonderful years were from 2015, actually, it was really from 2013, but from 2015 until 2019 year-end. During that time, our share price exactly doubled from [ 106 to 212 ]. We went from a valuation at EPRA NAV underlying value to a 13% premium above EPRA NAV. Our cash earnings doubled, our revenue doubled. So these were fantastic years. Then we got a [ triple whammy ]. One, we knew about. We knew that since there have been so many good years in the market, it would be difficult to meet all the new supply coming because obviously, when the market is good, people start constructing, and we had a huge pipeline. And I still remember Anders said, we are going to have a problem in a couple of years because there is too much supply coming. I agreed. Then we got something we didn't really have on our screen at all. That was the pandemic. And then at the end of the pandemic, we got the last whammy and that was increased interest rates. So what happened with the key numbers? Well, the share price actually fell. Our cash earnings fell not by much, but -- and everything else was bad. We were suddenly priced with a negative premium of 10% compared to underlying values. I mean, it's just like in the times of the [indiscernible], right? You have 7 good years and then you get the 7 bad years. This is not to be surprised by. You never know exactly what causes it, but this is called cyclicality, and it happens in capital-intensive businesses, which is hotels. Now as we are standing on the brink of 7 good years because that's normally what happens after 7 bad years, you can ask me the next question.

Yes, it's not been rehearsed this. As the largest shareholder and Chairman of Pandox, how do you think Pandox should create shareholder value in the years to come?

Well, first of all, we have talked a lot about Pandox operational excellence and our investment programs. And of course, this is important, but our investment program is less than [ 5 million ], i.e., less than 5% of our total holdings. And it is really to look at the big stake, not at the toppings that we have to do. So what about this SEK 93 billion hotel portfolio? What is it going to do forward? Is it going to increase in value and produce, increased cash earnings? Or is it going to look like it did the last 7 years? I am pretty confident that the future is going to be good for the part of our business that is the existing part. And why do I say that? Well, we have the opportunity of being in a good market. It's been talking a lot about that, but it has a growth of about 2% to 4%. You see it in the RevPAR, you see it in the amount of travel. It has the ability to absorb quite a lot of new capacity, not only hotel capacity, but Airbnb capacity, long stay capacity, et cetera. It's still growing nicely. We have very little supply of traditional hotels coming online. There are a few exceptions, but normally, you saw there was a huge decrease in supply coming. That's because there has been bad years and because construction costs have been going up. So there isn't so much incentive to construct. So fundamentally, this looks like a good market. And the best thing is the yield gap. We have a borrowing cost, even with the [indiscernible] loan that we talked a lot about at less than 4%. Our valuation yield is at 6.37%. That's a yield gap of 2.4%. And if you take today's share price, we actually have a yield gap of more than 3%. So what does this mean? Well, it translates to cash earnings because we have leverage, which you should have when you have a positive yield gap. And our cash earnings are going to be in the range of [ 2.3 billion ] for the year to come. What does that equate to? That equates to 5.2% return on our valuation that we give ourselves, and it corresponds to 7% return on the implied value by today's share price. So that's one part of how we can create value. You get a 5% or a 7% return on cash. The other component in property is obviously the value increases. Now if we have a RevPAR increase, as you have seen, between 2% and 4%, we don't know exactly, it goes up and down a little bit. But between 2% and 4%, that with leverage means you get an added double of 2% or 4%, i.e., 4% or 8% in addition to your cash flow. So to recap, at the market valuation, cash-on-cash yield is 7%, and we add between 4% and 8% to get our total return. That means it's 7% plus 4% is 11%, or 7% plus 8% is 15%. Probably return on today's market price should be yearly somewhere between 9% and 15%, let's say, 12%. And then you can do it on our implied values. And of course, that just means you go down 2 percentage points. So then it will be between 7% and 13%. Is that good or bad? It's a hell of a lot better than zero, which it has been over the last 5 years. So I think the most important element in any business is compound interest. And if you compound something at, say, 10%, and we hope to compound faster than that, then that will double our money in 7.2 years. You know the 72 rule, right? You compound, you divide, you take 72 first and then you divide by the return on capital. And that's the amount of years it takes. So if you have to double your money. So if you have 72 divided by 10% yearly return, it takes 7.2 years to get your money doubled. And this is a wonderful mechanism and the reason why most people get rich when you're older and you've done this for many years, then you get a lot richer than you are young. So that's the good part. So I'm pretty optimistic. In addition to this, of course, it's very important how we do the capital allocation. We've actually been quite good at that. I mean, we bought the [indiscernible] just after financial crisis. We bought Pandox just after the dot-com crisis. We bought [ Dalata ] now just, I think, after a very horrible hotel crisis and the increased interest rates. So I think we've been quite good on the timing on our main purchases. Otherwise, my philosophy is when you see a [indiscernible] shoot it, so that means we have bought a lot of single assets, and that's a little bit more not so important with the timing. We did one wrong thing in 2019, and that was to buy hotels from the -- now not completely bankrupt, but close to bankrupt, [ HR ] group, as I call them, [indiscernible]. That was the wrong moment to buy anything. And why is it so hard to be good at timing? It's because the market expects you to do things when things are good. When the capital is flowing, everybody is optimistic, they expect you to invest. So you have to be very disciplined. And I have learned from this [ Revo ] adventure that we will be disciplined. We will do [ Dalatas ], we will not do [indiscernible]. Dalata, fantastic, hadn't it been for the transactional costs. We would have had a yield of 9%, but 8.4% isn't so bad either. So that was probably a very good purchase. And it makes a difference. So I'm quite optimistic as to being able to create shareholder values. What can go wrong? Interest rates can increase. If we refinance everything in Pandox today at today's rates with the same margins that we have, that would mean about [ 360 million ] less cash earnings. That's 1 percentage point on the about 11% that I gave you as some kind of vision in my head. So if nothing more happens, and then I've even increased the short-term rates by 0.5 percentage point just to -- because that is going to come, to calculate this number of 1% difference in the total return. So I think that's the one thing that can go wrong. You never know. We know that we're going to get inflation. We also know that, that is probably not inflation that is a normal inflation. It's an inflation that comes because we have scarcity of supply lines and supply in other countries. That should then the interest rate won't really help so much because interest rate fuels the national economy, and it's not -- this is not overcapacity or too much capacity utilization. This is something that's imported. So I think maybe we will not see as high an increase in the interest rates as we could suspect from the rise in inflation as long as it's identified as energy and supply side slowness. I don't know, but that's my thinking. So I think we will get a little increase in interest rate, but maybe not as much. And then when we get inflation, that's very good for property and property values over the long run. So I'm pretty optimistic on that one, too. Then, of course, we don't know what happens to RevPAR. But my thinking is that it's been growing and growing and growing. I think it will continue growing in ups and downs. So I'm pretty good with my feeling that we will create value, and I am going to retire if we don't get more value than we did the 5 next year. That's a promise. The 5 last year, sorry.

Yes. Talking about retirement. I guess you have tons of questions, and you will soon have a go at him, but I have -- we have one last, and that is about ownership. And [ Endommspar ] and the [indiscernible] Siblings are Pandox's largest owners with a total of 45% of the capital and 69% of the votes. How do you see this ownership evolve in the years to come?

We have 2 kinds of shares, both [indiscernible] and ourselves. [indiscernible] has never sold one share in Pandox for all the years that we've been a shareholder, 23 years. And we have participated in all of the capital raises that we have had. The [indiscernible] family who is not as involved in the business as [indiscernible], they have sold 8 million out of their 11 million total B shares. I think at some point of time, but as you just understood from what I said, it's not going to be before we get a real value increase. I think [indiscernible] may, at some point of time, sell half of their B shares. [indiscernible] may sell the rest of their B shares. But the A shares, I don't think we're going to touch them. So for [indiscernible], which is the only thing I really know, I think it's likely that we will reduce by 2 percentage points our ownership down to 21, 20. Yes, somewhere around there. And then I think the [indiscernible] family will also reduce a little bit, but I think the A shares are pretty solid there, too. And how can I speculate about the [indiscernible] family? Well, I'm the Chairman of the Board. So even though I don't interfere, I do at least have a slight feeling of how they will behave. So that's, I think, the best answer I can give. We are long-term holders for [indiscernible]. Pandox brings us 2 things. We are -- [indiscernible] is diversified in all the different kinds of real estate. We have shopping centers. We have high street retail. We have warehousing, we. Have offices. We have apartments. We have parking. We have everything. And at the moment, and this has been increasingly so for me for the past couple of years, I see nothing that is going to perform better than hotels. So this is an industry we believe in. Also, it's a perfect diversification for [indiscernible] because we are in Norwegian [indiscernible] with most of our other assets, mostly based around Oslo. So it's nice to not only depend on the petrol kroner, but to have international currency exposure. And also, it gives us geographical exposure in other geographies than the tax ridden and not all so well run, very rich Norway. So we like it. We like Pandox.

That's nice to hear. Now I leave the floor to you for questions. I guess you have -- you must have questions.

Okay. I can hide.

You can hide. That's really good. And we have a question up there. A question there.

I'll give it a go. [indiscernible]. So we've heard throughout the day what Pandox should do more of. What should Pandox do less of?

I think Pandox might divest some hotels when the moment is right. So that would be a kind of new thought. We have divested hotels for almost [ 4 billion ], but that has mostly been hotels that had no strategic interest for us. I think we might from time to time, when the valuations are right. This is completely opportunity-driven, divest. So more active asset management, I think, is a good idea. Given what I just said about timing, et cetera. I think that on the operational side, we are doing most things very correctly. Since I have no responsibility for that, I can say it safely, but that's a complement to the organization in Pandox. I think we have a size, which means we get very good deal flow. But most of all, sometimes it's just to sit back and let the money work for you. I mean, if you can get 11%, 12% return without doing anything, why not? It doubles in 6 or 7 years.

Okay. Thank you very much. It's a miracle. We're on time. So please, Liia, maybe some closing remarks.

[indiscernible] closing remarks. And I think most things have already probably been said. I'm really grateful, and I want to thank you all for being here. You are our friends, our partners, and we really love your questions. So again, short recap. You've seen the market. You see the hotel is the right place to be. We have tried to explain our model. We've done it in quite great detail. But hopefully, we've been able to pick out different pieces. And you will have the possibility to ask questions during the afternoon because we in a property tour and everybody will be from the panels will be here. And I also want to take the opportunity to thank our Investor Relationship team. [ Anders, Ebba and Erik ] has been working around the clock with this. There have been some hiccups with presentations going back and forth, but I think you've been doing a great job. You can't get more gray hair than you already have, but I think you deserve a super applause. So there will be lunch. And then there will be the property tour and how will we go on about it because, this is what you do best.

Lunch is served outside here in the breakout room. And then we will meet at 12:50 at London Wall. We can show you the way for a quick hotel tour, and then we will have buses picking us up, transporting us to the other hotels that we will see in the city center. So 12:50 is the important time to note for London [indiscernible] Thank you very much.