Catena AB

STO:CATE

Earnings Call Transcript 2022-Q1

[Sofie Bennsten, executive]

Good morning and welcome to Catena Q1 report. Talking to you today is...

[Jörgen Eriksson, executive]

Jörgen Eriksson.

[Sofie Bennsten, executive]

And CFO, Sofie Bennsten. Moving over to Slide #3. And today's context, you see in the slide, and we start off with some highlights. And Jörgen, you're welcome to start.

[Jörgen Eriksson, executive]

Thank you, Sofie. Slide 4. Catena came out strong in the first quarter with a 5% increase in the rental income, and that is included a one-off in Q1 2020 of SEK 11 million. Year-to-date, our profit from property management has increased by 6% year-over-year. EPRA NRV has increased by 33% to SEK 276 per share, most because of revaluations, but also because of a directed share issue.

Our net leasing operations summarized to SEK 10 million. Worth to mention is that we came out this quarter with a net LTV below 50%. And our acquisition in Denmark was completed at the 1st of March and will have a full effect in our Q2 report.

We are underway with zoning plans anticipated to become final in 2021, enabling new potential projects. And we feel that our business are backed by strong interest from investors, and the credit market is stable and close to levels before the pandemic.

Please, Slide 5. As economies are starting to reopen, along with ongoing vaccination programs, confidence among consumers is increasing. The impact from coronavirus has limited effect on Catena in the first quarter of 2021. The setup program prepared for the first quarter of 2020 to cope with the situation is still in progress and of critical importance.

Summarizing the first quarter of 2021. Rental value of SEK 6 million was agreed to change from quarterly to monthly payments, of which they've all been paid for according to the plan. Discounts linked to government rent subsidy amounted to just under SEK 1.8 million.

Slide 6, performance, and we go over to Slide 7. History of profitable growth. The hard work Catena has put down to become the leading provider of logistics facilities in Sweden has been successfully. Profit from property management has paced at 14%. Compounded annual growth for the last 5 years and the earnings per share has paced at 41%. At the same time, the dividend has compounded annual growth at 20%.

Please, Slide 8. The rental income amounted to SEK 329 million in the period, and the total growth in rental income was 5% year-over-year. Project development contributed 5.5%; and net transactions, 1.9 -- 1.8%. Like-for-like, rent growth contributed 0.6%, which comprises a combination of lease reviews and renewals as well as indexation and changes in vacancy. There was also one-off effects related to prepayment of an early lease expiry amounting to 3.3%.

Moving to Slide 9 and Sofie?

[Sofie Bennsten, executive]

And some other comments on the income statement. Our net operating income was 4% higher, and income from property management was 6% higher than the same period last year. The surplus ratio went down slightly to 78.5% from last year at 79.1%. But one should keep in mind the effect of the positive one-off in the rental income of SEK 11 million that we had in the first quarter last year.

This first quarter was affected of a harsher winter with a lot of snow in Sweden and a temporary increase of the cost for electricity.

Unrealized changes in property value amounted to SEK 680 million and corresponded to 3.4% of fair value, and the value changes of a derivative amounted to SEK 85 million. All in all, the profit for the period ended at SEK 722 million, resulting to an earning per share of SEK 19.95.

Moving over to Slide 10 and Jörgen?

[Jörgen Eriksson, executive]

As indicated by the diagram, our cash flow has been growing consistently since 2016. For Q1, we have performed another strong cash flow period where we retain 57% from revenues in property management income, where we have a target of 50%. Cash flow, the key for stability, enabled us to generate the investment capacity for continued focus on profitable development pipeline. Our target is to maintain a level above 50% of rental income. And our dividend objective is to distribute 50% of property from property management less that of tax.

Moving to Slide 11, operational review on Slide 12. Sofie?

[Sofie Bennsten, executive]

Thank you. In our 5 regions, we've particularly experienced growth in the Malmö region with a 24% increase, much due to the large acquisition of 5 properties in Denmark. The Gothenburg region grew with 19% with 2 acquisitions in Borås. Catena has now a total of 121 properties, of which 9 of them are located in Denmark.

The economic letting ratio has temporarily gone down to 94%. This is due to the new vacancies in Borås, consisting of 38,000 square meters in the property over where the e-commerce company, Nelly, is moving in towards the end of the year and also in another property called Sunnanå of 15,000 square meters. And the letting process of this property is ongoing.

Moving over to Slide 13. Catena has a diversified asset portfolio, both in term of geography, tenant concentration and asset size. 46 of our contractual income is derived from our 10 biggest tenants, representing critical logistics providers with whom we hold several contracts, and that is attached to a variety of our properties.

The majority of our tenants, 42%, represent logistics and transport providers; and 39% represents the full distribution, an area that has grown during the pandemic and also has a booming e-commerce sector. Both sectors provide an important service to the society.

Moving over to Slide 14. Jörgen?

[Jörgen Eriksson, executive]

Thank you. Yes. On this slide, we present part of our customers, Sofie has talked about in the previous slide. Many of them are experiencing growth, and we will do our best to supply them with more spaces when needed. Some example of growth in our customers' business are the PostNord, handled the same volume of parcels the day after Easter as they did on Black Friday. And Boozt are expecting a growth of between 47% and 49% in the Q1 2021. It is clear signals to the market that the megatrend e-commerce is growing more and faster than we could imagine.

Move to Slide 15, rental market. The rental market is strong, especially in the most populated regions of Stockholm, Gothenburg and Malmö shown on the slide, where it is a shortage of new land. In other parts where land is not an issue. The market is typically more stable. We experienced significant occupier demand, specifically from parcel delivery providers, cold storage and e-commerce retailers.

Moving to Slide 16, please. We have experienced the first quarter of positive net leasing of SEK 10 million. Our weighted average lease for approximately 5 years has been stable metrics for many years. And as Sofie mentioned before, the economic letting ratio has temporarily gone down to 94% due to vacancy in Borås, waiting for Nelly to move in.

Move over to Slide 17, balance sheet and debt management and move to Slide 18. The EPRA NRV has grown by 16% annual since 2016, and we came out Q1 with SEK 276 per share. At the same time, the 5-year average return on equity has been 17%.

Move to Slide 19. Sofie?

[Sofie Bennsten, executive]

Since first quarter last year, the balance has grown with 27%, amounting to SEK 23.4 billion. Equity has grown with 2 share issues. On March 1, new shares were issued to the amount of SEK 200 million associated with the acquisition of the portfolio in Denmark. The last day of March, Catena completed a directed share issue, raising proceeds of approximately SEK 1.1 billion. Both issues were given under the authorization to the Board of Directors by the 2020 Annual General Meeting.

We intend to use the proceeds to continued growth through investments in property development and acquisitions, and furthermore, to maintain a stable capital structure. Moving over to Slide 20. By the end of the first quarter, the property value was appraised at SEK 20.6 billion of growth with almost SEK [indiscernible] initial yield at 5.3. The increasing value changes in the properties of SEK 680 million is due to the ongoing market share compression and that project being finalized. During the first quarter, we made external valuations of 68% of the property value.

Moving over to Slide 21, our debt and capital structure, where our interest-bearing liabilities amounted to SEK 10.5 billion, an increase with SEK 800 million since last day of December. Our average interest rate stayed at 2.3. That is the same level at the end of December. LTV, according to the definition in our new financial targets, where we from now on and onwards include cash balances into calculation, amounted to 49.7%. Equity ratio was reported at 41.1% with headroom from our new minimum target of 40%.

Moving over to Slide 22, on our funding structure. During the quarter, almost SEK 1.9 billion has been renegotiated, and the remaining amount with debt maturities this year will mostly be renegotiated during the third and fourth quarter. Ongoing discussions with our bank creditors are going well, and both farm and commercial paper markets are stable. Funds available and balance take total of SEK 1.6 billion, comprising cash of almost SEK 300 million and SEK 1.3 billion of undrawn committed bank facilities. In the beginning of April, the settlement of the directed share issue was executed and added close to SEK 1.1 billion in cash.

Moving over to Slide 23. In the beginning of April, we updated our financial targets. For example, the target for equity ratio was raised from 30% to 40%. Interest coverage ratio shall not be less than a multiple of 2, and average debt maturity should be at least 2.5 years. And net to loan value ratio should not exceed 50%.

Jörgen, do you have any comments on our new financial targets?

[Jörgen Eriksson, executive]

Well, I think the new targets clarifies our focus on our financial stability and sustainable growth, a growth of attractive logistic properties together with our long-term customers.

[Sofie Bennsten, executive]

And we move over to Slide 24 for some capital deployment, and moving on to Slide 25 and Jörgen.

[Jörgen Eriksson, executive]

Yes. Our long-term goal is to focus the majority of our investments into development. Although during the first quarter, we have acquired properties for SEK 1.1 billion where around SEK 700 million is in Denmark. We also invested SEK 160 million in projects in Q1. The ratio between acquisitions and development is not according to our long-term plan, but rather an outcome of that -- our zoning plan processes take longer time to in legal force than we expected. We are eager to start with projects on our land bank shown in coming slides.

Moving to Slide 26, which shows a slide of our transactions. As you can see, the major part has been concentrated in Denmark.

Slide 27. And here, we have a picture of our largest projects in progress and one of them, Morgongåva, we will come back to later in the presentation.

Moving to Slide 28. On balance sheet date, we hold a potential of about 5 million square meters of land. We're almost 1 million square meter of consolidated and with development plans in place. Rest of the land bank is conditional on various contractual agreements, such as detailed development plans having to gain legal force. The search of new land continues along with ongoing zoning plans in process.

Next slide, please. Sustainability and then we take Slide 30. Sofie?

[Sofie Bennsten, executive]

During the first quarter, we particularly been working with the implementation of TCFD. All the employees have been involved, and the results will be published on Catena's website during the spring. We've also started the work with climate declaration for new build property, which will be compulsory from 2022. To find new ways to reduce climate emissions on construction is one of the biggest challenges that the whole industry stands for.

Furthermore, we started to get acquainted with the new EU taxonomy and with that, we mean to Catena. The interpretation of the taxonomy, we will be gradually starting in 2022 with 2 of the 6 environmental objectives, which are climate change mitigation and climate change adaptation. Onwards, we will continue to inform you on our work with the taxonomy.

Moving over to Slide 31, and the more sustainability. We continue to monitor our energy consumption and GHG emissions and are devoted to make use of new technology to enhance our efficiency. We also continue the work to give our new build properties and environmental certification, and we now have 8 buildings certified with Miljöbyggnad Silver and several more in progress. The environmental certifications will create possibility for green financing, and we have a goal of 50% of outstanding credit volume shall be green in 2025.

Moving on to Slide 32 for the market insights and over to Slide 33. And Jörgen, your turn.

[Jörgen Eriksson, executive]

Thank you. Some more interesting signals from our customers that confirm our thoughts around the strong market. Online shopping grew by 40% in 2020 compared to 2019. DS Smith are seeing great demand from their e-commerce-related customers, and they will be ready to meet higher demand in the future Apotea, the largest online pharmacy in Sweden, had a growth of 50% in 2020 compared to 2019.

Next slide, 34, please. And as we mentioned before and you have all recognized, we made a larger acquisition in Denmark at the 1st of March. The portfolio consists of 5 properties and the largest tenants are [indiscernible]. We see that Denmark is an interesting case in the future, and I hope that we can grow more there.

Moving to Slide 35. You see a picture of Morgongåva. A new logistics facility of approximately 38,000 square meters, will be built in the Morgongåva Business Park, which is located about 40 kilometers west of Uppsala. The 12-year lease has been signed with Babyland, which intends to conduct its e-commerce deliveries from the facility. And the new logistics facility will be environmentally certified in accordance with the Miljöbyggnad Silver, which is strict requirement in terms of energy, the indoor environment and choice of materials. Solar cells will be installed on the roof. And the overall investment is expected to generate a net operating surplus of approximately SEK 17.8 million.

Moving to Slide 36. Worth mentioning once again is our share ratio, which brought in approximately SEK 1.1 billion. And there was a great interest from investors, and we are now ready to increase the pace of growth while presenting a very strong balance sheet.

And now we move on to the Q&A session.

[Operator]

[Operator Instructions] Our first question is from Niklas Wetterling of DNB.

[Niklas Wetterling, analyst]

I got a couple of questions. First off, about the vacancy rate. And you mentioned some kind of onetime effect here. And can you just explain that a little further? And will we see the vacancy rate come back to 4% at the end of Q2?

[Jörgen Eriksson, executive]

We have signed a lease contract with Nelly. And as we said in the presentation here, the full effect of that contract is from the first of January 2022. So we expect that we come back to the higher rate at the latest this 1st of January 2022, but it's, as we said, a temporary dip.

[Niklas Wetterling, analyst]

Okay. Yes. And given the recent share issue, can we expect an increase in investment volumes near term? Or was the share issue mainly to bring down the LTV to your new financial targets?

[Jörgen Eriksson, executive]

No. It's -- we think that we can speed up the temporary in growth or we can see that there are some interesting case in the market. And we are very confident with our land bank. So as soon as we have the legal force on the zoning plans, I think that we can present quite many projects. So it's a combination of acquisitions and development. I cannot say if it's next quarter or the coming quarters, but we are very confident with the situation that we will ramp up the growth here in the coming 12 months.

[Niklas Wetterling, analyst]

Okay. Great. Did you evaluate any other tax funding that wouldn't dilute the cash earnings per share for common shareholders, such as issuing hybrids or B shares instead?

[Jörgen Eriksson, executive]

I want to go in some details. But of course, when we did this issue, we saw that, that was the best alternative for us.

[Niklas Wetterling, analyst]

Okay. Yes. I saw in your report that the average interest rate is flat quarter-over-quarter, while the interest-bearing debt is up by 8% or so. But in your cash earning, you have slightly cut your financial cost outlook. Can you just help me understand that? Is that an effect that you will use the raised equity to reduce the debt? Or do you have a more bullish view on your funding margins going forward?

[Jörgen Eriksson, executive]

We can see that the funding margins will -- coming down in the future. I think that's the biggest reason.

[Niklas Wetterling, analyst]

Okay. And how large is the difference there? What do you see?

[Jörgen Eriksson, executive]

I cannot say any exact figures, time will tell, but we feel confident that...

[Sofie Bennsten, executive]

A couple of points down, and it's ongoing -- and it's an ongoing process to be over our entire portfolio. And we have a lot of loans agreements this year that we are renegotiating as we go on. So we're going to see a little bit change in the course of this year. And we hope we can make better options but we think that a few points at least.

[Niklas Wetterling, analyst]

Yes. So there is potential?

[Sofie Bennsten, executive]

Yes.

[Niklas Wetterling, analyst]

Yes. Great. And regarding value changes, you picked up steel there on a rolling 12-month basis. I believe you raised values by 10%. Do you believe you have catch up with the market now? Or is it more positive revisions to come?

[Jörgen Eriksson, executive]

That depends on what direction the market is going, but we feel quite confident with the valuation right now. And we see if the decompression is going further down, we have to come along, so to speak.

[Niklas Wetterling, analyst]

Yes. Okay. And lastly, just a short question about expected earnings from JVs. Can we -- do you expect to have any positive contribution from JVs near term?

[Sofie Bennsten, executive]

For the joint ventures, now we see quite flat. We hope that it was minus in the first quarter. It was due to the winter and that they make. So over the year, we should see quite flat, but it shouldn't be minus in the end at least. No big exposure or anything.

[Operator]

Our next question is from Markus Henriksson of Pareto Securities (sic) [ ABG Sundal Collier Holding ].

[Markus Henriksson, analyst]

A few questions from me as well. I saw in the presentation that you have a pending zoning planning in Stockholm South. I have seen those granted. Is that correct, that it's granted?

[Jörgen Eriksson, executive]

Yes. It's correct in one way and another way, there is also some other permits waiting for good to go, so to speak. We are talking about questions about handling the water. [indiscernible] is needed and so on. So it's not just -- as we are speaking, we are not very good to go, so to speak.

[Markus Henriksson, analyst]

All right. Do you have any time frame what -- if you look historically or what you heard from other similar cases, how long does it usually take?

[Jörgen Eriksson, executive]

I don't know. If it's like at the end of the year, I think that it could be some positive signs. It's tough to say when we're handling with the courts and so on. But yes, 9 months, plus/minus.

[Markus Henriksson, analyst]

Okay. So if we look at the other zoning plans, this has been kind of the one you've been mostly eager to start up with. What are the zoning plans do we have where you could start a new construction project here in 2021 (sic) [ 2022 ]?

[Jörgen Eriksson, executive]

We have Sunnanå where we are waiting for the decision from the court and with -- we hope to have the decision before this summer. And hopefully, after the summer, somewhere in the maybe October, Q3, Q4, we can be good to go at Sunnanå.

[Markus Henriksson, analyst]

Okay. I have a follow-up on the occupancy rate as well. You -- I thought you weren't quite clear there with the Nelly property. But if we look at the acquisitions you made also, I noticed the -- you mentioned the Åre 92 and also Hevea 3 core property. Could you elaborate a bit on how large vacancies we have in those 2 properties? [indiscernible] percentage points from Nelly and the acquisition?

[Jörgen Eriksson, executive]

Yes. Nelly is 38,000 square meters. And Hevea, I think it's 3,000 to 4,000 square meters vacancy in the Hevea property. Then, we had moving out in the Q1 from another property in Borås, Vindtunneln, and that property is around 15,000 square meters. But there, we have good discussions ongoing. So we think that's a normal case for us.

[Markus Henriksson, analyst]

Okay. And if we look at the core property, what -- so what do we -- are we missing that in order to lease out that vacancy? Do you need to invest time and money there? Or do you see that as an easy vacancy?

[Jörgen Eriksson, executive]

It's -- I think it's a normal case, and I'm not sure about how much money we need to invest in that case. We have to come back on that one.

[Markus Henriksson, analyst]

Okay. I also have a question regarding new construction. If we look at in the total market in Sweden, it's been around 500,000 square meters for the past 5 years of new construction. And now this year, it's much higher. And you have a few zoning plans that are pending. But if we look into 2022 and 2023, how do you view your potential to defend the market share you had in 2019 and 2020?

[Jörgen Eriksson, executive]

We are still very confident that we will increase our case when we're talking about the pending zoning plans. I mean we have like Stockholm South, is a very huge area. And in Örebro, we have even bigger. And we have Landvetter and Burlöv and Sunnanå and Malmö, and it's very, very good position. So I think that we can present a lot of new projects in the -- if we are talking in 24 months, for sure.

[Markus Henriksson, analyst]

And also a follow-up on financing. You expect to renegotiate around 25%. Is most of that in Q3? Or is it seasonally in Q3, Q4 here in second half of the year?

[Sofie Bennsten, executive]

I think it's quite -- the most, I think, is in Q3 and a bit less in Q4.

[Operator]

Our next question is from Jan Ihrfelt of Kepler Cheuvreux.

[Jan Ihrfelt, analyst]

I have a couple of questions also. And I start with comment in the report saying that the planned maintenance is running on a low speed, so to say. When you actually do more planned maintenance work, is that going to affect the surplus ratio to any larger extent? Or is it just a comment of cautiousness?

[Jörgen Eriksson, executive]

I don't think it will be a larger extent, but due to the pandemic, there have been some restrictions from our tenants that we cannot disturb them too much, and we have to respect it. But I mean it's no larger figures that will come out from the surplus in the nearest future.

[Sofie Bennsten, executive]

No. I think it's more of a cautious way to put it, that we had some fluctuations during the quarters. But it's always better to do maybe mid for maintenance during the -- when we don't have the weather against that. There shouldn't be any bigger fluctuations at all.

[Jan Ihrfelt, analyst]

Okay. And looking at the property revaluations. And if you could split that into regions, are there any regions that are stronger, so to say, when it comes to property revaluations and some ranges a little bit weaker? If you could comment up on...

[Jörgen Eriksson, executive]

Yes. I wouldn't -- I don't want to mention weaker because I think the whole market is very hot in the moment. But of course, in Stockholm, there has been some properties that compression is quite clear that it's going down a lot and also valuation connected to our developments like Tostarp and Sunnanå. That's a typical example of very high valuation -- increases in valuations. And that makes us confident when we are looking at the new projects coming in Stockholm South and Landvetter and so on.

[Jan Ihrfelt, analyst]

Okay. And just a question along that line. I saw on one of your slides here that the gross initial yield in Enköping was 9%. How come that it was so high?

[Jörgen Eriksson, executive]

Yes. It's a good question. We'll have to come back to -- I can't say that...

[Jan Ihrfelt, analyst]

Yes. Great. And then a question on your LTV. It's very close to 50%, and that's actually your target. How should we view future growth there? If you do acquisitions, do you need to bring in more money? Or how can you finance your expansion here because you're very close to your limit there?

[Jörgen Eriksson, executive]

Yes. But also, we have the bank account full of cash. And I mean, of course, we can do acquisitions and we can have an LTV of around 50%. So that's our target. So I don't see that as an issue right now.

[Jan Ihrfelt, analyst]

Okay. So you could live with being very close to your limit, so to say, because other companies are having heard from 50%, and they would like to be in the 45% range or so...

[Jörgen Eriksson, executive]

Yes. It's good for us to be on the target there, hovering around 50%.

[Jan Ihrfelt, analyst]

Just a broad question on rents. Due to the very strong market that we see on the back of the e-commerce trend, when you renegotiate, could you put up the rent levels somewhat? It hasn't been that historically, but do you see a new situation now for maybe some rent growth?

[Jörgen Eriksson, executive]

Yes. I mean, first, we don't have that many contract renegotiating every year. But I think that in the future, if we are in the regions of Stockholm and Malmö and Gothenburg, and there is no more options for the market, there is no more land available, then, of course, the rents will go up. But we are not seeing it right now like it has been in the office market in Stockholm, for example. But we are pretty confident that in the coming years, we have a possibility to raise the rent levels a bit in the big cities or around big cities.

[Jan Ihrfelt, analyst]

Okay. And due to the long contracts, it takes time before it actually meets your...

[Jörgen Eriksson, executive]

Yes. I mean it's long contract, so it's tough to say. We don't have so many indications every year.

[Jan Ihrfelt, analyst]

Okay. And finally, a question maybe for Sofie. Paid tax was, I think, about SEK 15 million or SEK 16 million this quarter even larger than paid tax for the whole 2020. Is there anything to read into that? Or are you expecting the paid tax to be on pretty much the same level as in 2020?

[Sofie Bennsten, executive]

Yes, I think -- you mean compared to last quarter -- the first quarter last year, you mean?

[Jan Ihrfelt, analyst]

oh, I'm just looking at the cash flow statement and...

[Sofie Bennsten, executive]

Well, it's more -- that the cash flow statement shows that it's more that we pay taxes for, yes, property. No. Yes, the property -- the taxes for last year paid during the first quarter. And of course, with the new limitations for [indiscernible] make that we will have a bit larger. And then in 2020, we paid the tax for '19. And those taxes weren't that high because these regulations haven't hit them. So that's why you see a bigger part now that we pay, which is for 1 year back. So I think this is more accurate for the level going forward that we can see than the historical figure.

[Operator]

Our next question is from Victor Krüeger of ABG.

[Victor Krüeger, analyst]

Just the first question on your reported NRV per share. Is it based on the roughly 38.2 million shares or on 41.2 million?

[Sofie Bennsten, executive]

On the 41.2 million.

[Victor Krüeger, analyst]

Okay. So just because for the rate, if I use that, I come up to a year-on-year change more around 46%, 45%. And I think you guys reported 33%. If you adjust -- that is if you adjust from last? So that's the same number of shares for Q1 '20 as well?

[Sofie Bennsten, executive]

Yes. I think we need to recalculate the average. And the larger number came in the last of March. So I think it's the way we don't get a bigger -- get that difference.

[Victor Krüeger, analyst]

Okay. Right. And you talked a bit about the maintenance costs further and being somewhat cautious. Something I noted was that you say some costs will -- or have been postponed due to COVID-19. And in what range would you say that those costs are? So like 10% of your the maintenance cost you had this quarter or ballpark figures?

[Sofie Bennsten, executive]

It's always difficult to talk about what comes. We can't really see that yet. But -- so I think we will have a difficult to put a figure on it.

[Victor Krüeger, analyst]

Okay. And you cannot really see if it looks to be a large cost item? Or is it...

[Jörgen Eriksson, executive]

I would say we cannot see that it will be a large figure in the coming quarters.

[Victor Krüeger, analyst]

Perfect. And just to clarify with Sunnanå, the new property there, because you finalized one last year, right?

And so...

[Jörgen Eriksson, executive]

Exactly.

[Victor Krüeger, analyst]

And you have -- maybe you have both stated in the report for Q1, maybe even in the year-on-year report?

[Jörgen Eriksson, executive]

Yes. I mean there are...

[Victor Krüeger, analyst]

There are 2 different property names, right? I just haven't...

[Jörgen Eriksson, executive]

Yes, they are. And we are now waiting for the zoning plan to be approved on another 110,000 square meters.

[Victor Krüeger, analyst]

Right. Okay. Exciting. Just the last one here in the state. When it comes to -- on Page 10, you can see your project portfolio. And you stated that total remaining investments amount to SEK 599 million. I assume that is -- or that is also stated that, that is both for projects and for investments in the existing portfolio. And is this for an indefinite time line? Or is it for the rest of 2021? Or what time period is that, Sofie?

[Sofie Bennsten, executive]

That's what we have in the books right now. So going forward, that's been decided and started on. So it's going to be ready during 2021 or can also drift into 2022, but that is what's decided and ongoing.

[Jörgen Eriksson, executive]

Yes. And it's not common that the project is longer than 12 months. I think that the Morgongåva is the one that will be finalized in the beginning of 2022. And I think no projects that we have here is finalized after that one.

[Victor Krüeger, analyst]

Yes. Okay. And just quick on Morgongåva. Is that -- Apotea facility next to it, is that also yours or somebody else?

[Jörgen Eriksson, executive]

Apotea is ours, and this new project with the Babyland is our project.

[Victor Krüeger, analyst]

Right. Is that Snesholm 1:16, Apotea?

[Jörgen Eriksson, executive]

Yes. Exactly.

[Operator]

[Operator Instructions] There are no further questions at this time, so I'll hand back over to our speakers.

[Jörgen Eriksson, executive]

Okay.

[Sofie Bennsten, executive]

Well, then, thank you all for listening in today, and we would like to wish you all a wonderful day and a nice weekend.

[Jörgen Eriksson, executive]

Yes.

[Sofie Bennsten, executive]

Goodbye from Helsingborg.