Interim Financial Report Jan-Sep 2021

INTERIM FINANCIAL REPORT

JANUARY - SEPTEMBER 2021

Picture: Property Almnäs in Södertälje

THE QUARTER

IN SHORT

NET PROFIT:

RENTAL INCOME:203 MSEK

484 MSEK

NET OPERATING INCOME:

361 MSEK

JANUARY-SEPTEMBER 2021 (January-September 2020 in brackets)

• Rental income increased by 3 % to SEK 484 million (470) and net operating income increased to SEK 361 million (360), the increase of rental income is largely offset by higher costs for heating and snow removal during the beginning of the period. During the same period last year, one-off compensations were received of approximately SEK 11 million which was reported as other income.
• Income from Property Management increased by 7 % to SEK 203 million (191).
• Net rentals during the period amounted to a total of approximately SEK 24 million (net lettings if Exploria AB´s bankruptcy is excluded amounts to SEK 41 million) and new lease agreements with an annual rental value of approximately SEK 59 million were signed.

• Lease renegotiations during the period led to an increase in rental values of 18 % on weighted average.
• Cash flow from operating activities amounted to SEK 200 million (174), corresponding to SEK 7,04 per share (6,17).
• Changes in the value of investment properties for the period amounted to SEK 779 million (32).
• Profit for the period increased by 379% to SEK 788 million (164), corresponding to SEK 26,39 per share (4,37).

SIGNIFICANT EVENTS DURING THE

THIRD QUARTER

• On July 1, Stendörren established itself in the new market Viared located in Borås municipality through the acquisition of the property Vattnet 7. The property comprises approx- imately 6,300 sq.m and has a property value of SEK 84 million.

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LETTABLE AREA:

768 000 M2

LTV:

46 %

FAIR VALUE:

10 803 MSEKEQUTY RATIO:

44 %1)

• On July 2, the company's second acquisition in Viared, Bor- ås municipality, was completed. Underlying property value was SEK 45 million comprising approximately 3 700 sq.m.
• Stendörren decided on 19 July to adjust the dividend policy, see further on page 7. Furthermore, a new financial target was decided. The new target, which complements
  the existing ones, adds growth in long-term net asset value as a financial target, see further on page 7 and 9.
• During the quarter, a number of new leases were signed, including a 6-year lease agreement with Conjet regarding new warehouse, production and office premises in the Kalv- svik 16:17 property of approximately 2 600 sq.m.
• During the third quarter, Stendörren received a building permit for one logistics building of about 6,000 sq.m in Brunna in Upplands-Bro, north of Stockholm. Three more applications for building permits have been submitted, of

which two for light industrial purposes and one for logistics purposes, totalling approximately 15,900 sq.m.

SIGNIFICANT EVENTS AFTER THE REPORTING PERIOD

• On October 1, the property Västerås Skonerten 2, compri- sing approximately 4 700 sq.m, was acquired. The underly- ing property value was SEK 48 million.

1. The stated equity ratio is calculated excluding the leasing debt brought by the application of IFRS 16. If this item would be included in the calculation the equity ratio would be negatively impacted by approximately 0,9 %.

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TABLE OF CONTENT

CEO's comment.........................................................................................................................	5
Stendörren overview..............................................................................................................................	7
Key ratios....................................................................................................................................................	8
THE BUSINESS
Consolidated statement of comprehensive income............................................................. .	10
Comments to the consolidated income statement..................................................................	11
Consolidated statement of financial position............................................................................	12
Comments to the consolidated statement of financial position.......................................	13
Consolidated changes in equity......................................................................................................	14
Consolidated cash flow statement.......................................................................................	15
Property portfolio summary.....................................................................................................	16
Projects portfolio summary...................................................................................................	19
Property valuation..................................................................................................................	21
Financing..................................................................................................................................	22
Sustainability.......................................................................................................................................	23
Condensed parent company..........................................................................................................	25
Share capital and ownership..................................................................................................... .....	27
Other information.................................................................................................................................	28
The board of directors..................................................................................................................... ..	29
Review report..........................................................................................................................	30
Appendix 1, Assessed earnings capacity....................................................................................	31
Definitions...............................................................................................................................................	32

In this report there may be found summation deviations in individual tables due to roundings.

Stendörren Fastigheter AB (publ) is a real estate

company active in the segment of warehousing, logistics and light industrial properties. The company is listed on Nasdaq Stockholm (Ticker: STEF B)

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CEO'S COMMENT

During the period January to September 2021, Stendörren increased rental income by 3% to SEK 484 million and net operating income increased by SEK 1 million to SEK 361 million, compared to the corresponding period in 2020. Higher costs for heating and snow removal during the first quarter compared with the corresponding period 2020 and one-off compensations during the previous year reduces an underlying increase in net operating income. Profit from property management increased by 7 % during the same period to SEK 203 million, mainly due to reduced costs for central administration. The increase in the value of the property portfolio for the period amounted to SEK 779 million, and was mainly attributable to improved cash flows, further identified project potential within the existing portfolio and in some cases adjusted return requirements. The positive figures show a continued strong development for our business.

THE LETTING ACTIVITY HAS DEVELOPED VERY

strong during the year with a net letting of SEK 24 million (excluding Exploria AB's bankruptcy, net lettings for the period amounted to approximately SEK 41 million) and in total new lease agreements with an annual rental value of approximately SEK 59 million have been signed. The positive development is a result of the fact that at the end of last year we implemented a change in the way we work and implemented some organizational reinforcements in the rental business, measures that began to show result in the first quarter. My view is that the organization is thus, after the implemented changes and reinforcements, equipped for a continued improvement of Stendörren's business and key figures. Furthermore, we leave an eventful period behind us where a number of important milestones have been passed, both in our property development business and in acquisi- tions.

Within our property development, we decided at the end of the spring, in a first stage, to develop about 350 out of a total of about 800 residential apartments within the property Tegelbruket 1 in Botkyrka under and the application for building permit was submitted before Midsummer. Since autumn 2016, the company has been working on the zoning for Tegelbruket 1, which gained legal force in the summer of 2019. We are very pleased that we have thus reached such a milestone in our ambition to develope residential within Stendörren's existing portfolio as well.

In addition, the application for a building permit has been submitted for several logistics properties around Mälardalen.

In Brunna in Upplands-Bro, north of Stockholm, we have received building permit for a logistics building of about 6,000 sqm. The project is located on the property Viby 19:66 on Symmetrivägen 11 and represents the first stage of the development of the property and at the same time also represents the start of the development of the company's building rights in the area. The logistics building can be shared between two tenants and means that Stendörren can offer premises from about 2,700 sqm. The building has a clear sustainability profile and will be certified according to BREEAM with the goal of reaching level Excellent. Among other things, both geothermal and solar energy are planned. It is exciting that we can thereby strengthen our customer offering with modern and sustainable logistics in one of the Stockholm region's most attractive logistics areas. We look forward to implementing the project and meeting the demand for premises for urban logistics. Stendörren wants to offer premises that make a difference and therefore it makes me extra proud that we have focused on finding flexible and sustainable solutions and aimed for a pleasant working environment for our customers' employees. We own a total of six properties in Brunna and several of them have unused building rights with the potential for further development.

The increased activity in property development is a result of us methodically reviewing our property portfolio, property by property, since the beginning of last year, to find additional value-creating projects and other investment opportunities within the existing portfolio. In light of the further identified potential, the company decided to adjust the dividend policy, with the effect that dividend will be >

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