ODIN Kiinteistö. Rahastokatsaus joulukuu 2017

ODIN Kiinteistö Rahastokatsaus joulukuu 2017

Rahaston salkku

ODIN Kiinteistö joulukuu 2017 Viime kuun tuotto ja tuotto vuoden alusta Rahaston tuotto viime kuussa oli 2,5 prosenttia. Vertailuindeksin tuotto oli 2,0 prosenttia. Vuoden alusta rahasto on tuottanut 11,9 prosenttia. Vertailuindeksi on tuottanut 6,3 prosenttia. Rahaston hinnoittelu Rahasto hinnoitellaan 15,4 kertaa 12 kuukauden tulosennusteella. Rahaston osinkotuotto on 2,8 prosenttia. Salkkuyhtiöiden omapääoma per osake hinnoitellaan 1,2 kertaisesti. Rahaston sijoituskohteiden keskimääräinen oman pääoman tuotto oli 6,6 prosenttia 3

ODIN Kiinteistö 2017 Vuodesta 2017 tuli ODIN Kiinteistö -rahastolle hyvä vuosi. Rahaston tuotto oli euroissa 11,9%. Tuottoa vauhdittivat eniten Wihlborgs, Sagax ja Enta. Yhtiöiden lisäarvon muodostus vuonna 2017 on entistä enemmän perustunut niiden kykyyn lisätä vuokrattavia neliömääriään, mutta olemme myös huomanneet vuokrien nousun merkityksen kasvavan. Alhaiset korot ovat myös vaikuttaneet myönteisesti tuottojen kasvuun. Sen lisäksi matalat korot ovat entisestään laskeneet tulosvaatimuksia ja nostaneet kiinteistöjen kirjanpitoarvoja. Yhtiöiden kirjanpitoarvot ovat vuoden aikana nousseet yli 20 %. ODIN Kiinteistö-rahastosta 85 % oli vuodenvaihteessa ruotsalaisia osakkeita. Kun taas katsomme omaisuuserien sijaintia, maantieteelliseksi jakaumaksi tulee 75 % Ruotsi, 8 % Norja, 11 % Suomi, 2 % Tanska ja 4 % Pohjoismaiden ulkopuoliset maat. Vuoden aikana suurimmat muutokset rahastossa olivat osakeostot yhtiöistä NP3, Eiendomsspar ja Heba, ja samalla luovuimme kokonaan osakkeista Technopolis ja Jeudan, supistimme omistuksiamme Hemfosa ja Castellum, ja ostimme lisää Spondaa. Sijoituksia tehdessämme tähtäimessämme on: 1. Vakaa ja kasvussa oleva osakekohtainen tuotto 2. Järkevä lainanotto sekä tulokseen, kassavirtaan että kiinteistöarvoihin nähden 3. Vuokralaiskannan järkevä koostumus. Vuokralaiskannan on oltava vakaata, ja suosimme pitkäkestoisia sopimuksia. Vuokralaisten vaihtuminen aika ajoin on kuitenkin tärkeää, jotta vuokrataso voidaan saattaa vastaamaan markkinahintoja 4. Sellaisista kiinteistöistä muodostuva salkku, jotka eivät ole vaarassa jäädä tyhjiksi vuokrasopimuksen umpeuduttua 5. Salkun järkevä kokoonpano maantieteellisesti ja segmenteittäin 6. Johto, joka panostaa lisäarvon tuottamiseen kehittämällä kiinteistöjä 7. Osakkeen alhainen hinta suhteessa tulokseen, kassavirtaan ja riskiin.

ODIN Kiinteistö 2017 Kuten viimevuotisessa vuosikatsauksessa kerroimme, olemme päättäneet olla sijoittamatta pelkästään kiinteistöjen kehittämistä harjoittaviin yhtiöihin, koska niiden riskiprofiili poikkeaa ODIN Kiinteistöt suosimasta linjasta. Vuonna 2017 tämä on osoittautunut järkeväksi päätökseksi. Korkea velkaantumisaste ja suuri suhdanneherkkyys on vaikea yhdistelmä asuntomarkkinoiden laantuessa. Monet näistä yhtiöistä ovat laskeneet yli 50 %. ODIN Kiinteistö-rahaston tavoitteena on antaa kilpailukykyistä tuottoa suhteessa sijoituskohteena olevien yhtiöiden sisältämään riskiin. Pörssin yleiset heilahtelut vaikuttavat salkun hinnoitteluun, mutta käsityksemme mukaan nämä heilahtelut ovat usein huomattavasti suurempia kuin kiinteistöjen arvojen vaihtelut. Sellaisissa tapauksissa pyrimme hyödyntämään heilahteluja salkun tasapainon palauttamiseksi. Vuonna 2017 kaupasta ja ostoskeskuksista riippuvaisten yhtiöiden kehitys on ollut heikkoa. Olav Thon, Atrium Ljungberg ja Hufvudstaden ovat kehittyneet heikosti ja vaikuttaneet tuottoon negatiivisesti. Olemme jatkaneet suhteellisen pienellä sijoitusosuudella tähän segmenttiin, ja ilmeisen ja todennäköisen uhkakuvan mukaan verkkokauppa vähentää kaupallisten kiinteistöjen houkuttelevuutta. Uskomme kuitenkin, että joidenkin yhtiöiden hinnoittelu tuo mukanaan hyviä sijoitusmahdollisuuksia, kun taas toisten kehitys jatkuu tahmeana.

Korot vakaita vuonna 2017 Pitkät korot nousivat vuoden 2016 jälkipuoliskolla, mutta sen jälkeen ne ovat pysyneet vakaina, esim.ruotsin 10 vuoden korko on hieman yli 1 %. Lyhyet korot ovat itse asiassa hieman laskeneet vuonna 2017, ne ovat Ruotsissa noin -60 peruspisteessä. Ruotsin talouden, joka on rahaston selvästi tärkein markkina-alue, kehitys on myös vuonna 2017 ollut vahvaa. IMF ennustaa BKT:n kasvavan 3,1 % edellisvuoden tapaan, mutta vuonna 2018 kasvun odotetaan normalisoituvan 2,4 %:iin. Suomen talous on monen vaikean vuoden jälkeen kääntynyt nousuun ja BKT:n kasvuksi ennustetaan koko vuoden 2017 aikana kokonaista 3,1 %, ja yli 2 %:n lukemaa myös vuodelle 2018. Norjassa BKT:n kasvun arvioidaan nopeutuneen 1,4 %:iin vuonna 2017 ja jatkuvan samaa vauhtia myös vuonna 2018. Vaikka kasvu on nopeampaa kuin vuonna 2016, se on edelleen pohjoismaiden heikointa. Tanskassa kasvu pysyy vakaana 1,5 2,0 %:ssa. Väestönkasvu on tärkeä kasvun vauhdittaja kaikilla kiinteistösegmenteillä, ja varsinkin Ruotsissa väkiluku on kasvanut nopeasti. Pohjoismaiden väestömäärä kasvoi vuonna 2017 yhteensä 1,2 %, mikä ylittää selvästi Euroopan väestön kokonaiskasvun +/- 0.

Lisäarvo perustuu pinta-alaan ja vuokriin Kuten alla olevasta kuvioista näkyy, osakekohtainen tulos ei yllättäen ole tärkein tekijä, joka vaikuttaa kiinteistöyhtiöiden osakekurssin kehitykseen. Vaikka matalammat korot vaikuttavat tuottoihin positiivisesti, pinta-alan ja vuokrien kasvu on tärkein kasvun vauhdittaja. Resultat & utbytte ODIN Eiendom 12m rullerende (NOKm) vs. Fondskurs 90 80 70 60 50 40 30 900 800 700 600 500 400 300 Tuoton peruskasvu (ilman laskeneiden korkojen vaikutusta) on ollut vakaat 9 12 %, ja kun osinkoa on jaettu 3 %, yhtiöiden arvonlisäys vuoden aikana on ollut 12 15 %. 20 10 0 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 200 100 0 Inntjening LTM Utbytte LTM ODIN Eiendom - Fondskurs RHS

Vahvat kiinteistömarkkinat vuonna 2017 Liikekiinteistöjen markkinat olivat Pohjolassa vahvat vuonna 2017. Kun rakentaminen on ollut vähäistä ja kysyntä kasvanut, vuokrat ovat kehittyneet positiivisesti varsinkin Tukholman alueella. Hufvudstaden kirjoitti kolmannen vuosineljänneksen raportissaan, että neliövuokrat ovat Tukholman keskustassa nyt 5 700 8 200 Ruotsin kruunua ja Göteborgissa vastaavasti 2 500 3 300 Ruotsin kruunua. Yhtiöillä on ollut edelleen hyvin tarjolla rahoitusta. Monet yhtiöt ovat hyödyntäneet vahvoja rahoitusmarkkinoita pidentämällä sekä lainojaan että korkositoumuksiaan. Esimerkiksi Balder laski liikkeeseen ensimmäisen Euro-obligaationsa, jossa se sai 1,24 % kiinteän koron 500 milj. euron 5-vuotiselle obligaatiolainalle. Uskomme monien yhtiöiden hakevan luottoluokitusta ja käyttävän obligaatiomarkkinoita myös vuonna 2018. ODIN Kiinteistä-rahaston kuuluvien yhtiöiden painotettu keskimääräinen 3,4 vuoden kiinteä korko on nyt 2,39 %.

ODIN Kiinteistö 2018 Pidämme kiinteistömarkkinoiden näkymiä vuodelle 2018 positiivisina. Korot ovat pysyneet kuluneen vuoden aikana vakaina ja pidämme järkevänä yhtiöiden viimeaikaisia päätöksiä pidentää korkosidonnaisuuksiaan. Jos korot nousevat, se johtuu hyvin todennäköisesti parantuneesta taloudesta ja nopeutuneesta inflaatiosta, joka puolestaan vaikuttaa positiivisesti kiinteistöyhtiöihin, vaikka suuremmat tuottovaatimukset voivat pienentää kiinteistöjen arvoa. Rajallinen rakennustoiminta on tiukentanut taseita ja monessa paikassa olemme nähneet vuokratason nousevan, minkä kehityksen uskomme jatkuvan. Yhtiöillä on myös vahvat perustoiminnot, ja ne ovat pitkään osoittaneet pystyvänsä kasvattamaan omistustensa määrää. Sitä ne ovat myös tehneet vuonna 2017, ja kehitys voimistuu vuonna 2018. Rahaston yhtiöillä on vahvat taseet, ja niiden velkaantumisaste on järkevä, 50 %. Tämä vaikuttaa mielestämme positiivisesti oman pääoman tuottoon samalla, kun yhtiöt ovat hyvin valmistautuneita entistä haastavampiin markkinoihin, ja niillä on kapasiteettia jatkaa kannattavaa kasvuaan. Osakekurssit nousivat huomattavasti vuoden 2017 alkupuoliskolla, ja ne ovat pysyneet vakaina vuoden jälkipuoliskolla. Tuloksen ja osinkojen kasvu on ollut vuonna 2017 yhteensä 16 %, ja rahaston arvo on noussut 12 %. Toisin sanoen uudelleenhinnoittelun vaikutus on ollut noin 4 %. Pidämme epärealistisena toivetta kiinteistöjen arvojen merkittävästä kasvusta vuonna 2018. Mielestämme tuottopaineet varsinkin Norjassa ja Ruotsissa ovat olleet huomattavat, ja potentiaalia on jälleen vähän. Sen sijaan nousu voi olla mahdollista Suomessa ja Tanskassa. Lisäarvoa on siksi saavutettava kasvattamalla yhtiöiden pinta-aloja ja vuokratasoja. Tämän suhteen näkymät ovat hyvät. Yhtiöiden projektisalkut ovat huomattavia ja nousevat vuokratasot näkyvät vähitellen yhtiöiden tuloksissa, kun vuokrasopimuksia neuvotellaan uudelleen tai tarkistetaan. Siksi yhtiöiden kasvunäkymät ovat mielestämme edelleen hyvät, ja samalla osakekurssien näkymät. Balder, Sagax ja Wihlborgs ovat edelleen rahaston suurimmat sijoitukset. Varsinkin hyvä pääoman kasvu ja tuotto luovat lisäarvoa, ja tällä perusteella arvioituna nämä yhtiöt sijoittuvat erittäin hyvin.

10 Key figures

Portfolio Return Last 5 years % (EUR) ODIN Eiendom C Index Historical Return % (EUR)* Last Month YTD 1 Y 3 Y 5 Y 10 Y Since inception Portfolio 2,47 11,92 12,79 11,99 13,81 10,53 14,90 Benchmark 2,02 6,33 7,32 14,55 16,34 11,77 12,59 Excess Return 0,45 5,58 5,47-2,57-2,53-1,25 2,31 * Returns for periods exceeding 12 months are annualized

Annual returns last 10 years

Historical Return - All fund classes Last Month YTD 1 Y 3 Y 5 Y 10 Y Since inception ODIN Eiendom A 2,57 13,30 14,18 13,38 15,23 11,91 16,34 ODIN Eiendom B 2,54 13,06 13,93 13,12 14,96 11,64 16,06 ODIN Eiendom 2,47 11,92 12,79 11,99 13,81 10,53 14,90 Benchmark 2,02 6,33 7,32 14,55 16,34 11,77 12,59 * Returns for periods exceeding 12 months are annualized Annual returns last 10 years - All fund classes ODIN Eiendom A 2017 13,30 2016 4,53 2015 21,91 2014 20,63 2013 16,73 2012 26,29 2011-11,80 2010 47,67 2009 60,34 2008-42,41 ODIN Eiendom B 13,06 4,29 21,61 20,32 16,44 25,97-12,02 47,30 59,94-42,56 ODIN Eiendom C 11,92 3,23 20,41 19,13 15,29 24,72-12,90 45,83 58,35-43,13 Benchmark 6,33 7,75 29,83 27,28 12,65 19,31-13,24 63,92 34,68-37,41

ODIN Eiendom - 29/12/2017 Security (Company) Currency Market Number of shares Market price Cost price Market value Unrealised gain (loss) % of assets under management Local currency NOK 1000 NOK 1000 NOK 1000 Pandox SEK Stockholm 509 404 157,80 67 974 80 312 12 337 4,7 Total Consumer Discretionary 67 974 80 312 12 337 4,7 Atrium Ljungberg AB ser. B SEK Stockholm 596 295 130,30 74 494 77 627 3 134 4,5 Balder B SEK Stockholm 677 378 219,10 111 157 148 280 37 123 8,7 Castellum SEK Stockholm 372 964 138,30 42 990 51 534 8 544 3,0 Catena SEK Stockholm 217 559 158,00 27 306 34 343 7 038 2,0 Corem property Pref SEK Stockholm 218 480 152,00 30 503 33 179 2 676 1,9 Diös Fastigheter SEK Stockholm 1 389 911 55,75 60 427 77 418 16 991 4,5 Eiendomsspar NOK Oslo (U) 100 000 353,00 34 051 35 300 1 249 2,1 Entra NOK Oslo 649 178 122,00 55 376 79 200 23 823 4,6 Fabege SEK Stockholm 448 003 174,60 50 968 78 151 27 183 4,6 Fast Partner SEK Stockholm 539 404 147,50 72 417 79 490 7 074 4,6 Heba Fastigheter B SEK Stockholm 303 945 110,75 32 582 33 632 1 050 2,0 Hemfosa Fastigheter SEK Stockholm 718 695 110,00 59 037 78 985 19 948 4,6 Hufvudstaden A SEK Stockholm 594 607 131,30 67 412 78 002 10 590 4,6 Klövern Pref SEK Stockholm 253 010 309,50 76 856 78 236 1 380 4,6 NP3 Fastigheter SEK Stockholm 983 581 51,75 46 093 50 855 4 762 3,0 Olav Thon Eiendomsselskap NOK Oslo 482 224 163,00 69 696 78 603 8 907 4,6 Sagax B SEK Stockholm 1 497 156 98,60 101 751 147 487 45 735 8,6 Victoria Park B SEK Stockholm 2 717 528 29,40 58 575 79 823 21 249 4,7 Wallenstam B SEK Stockholm 995 246 78,80 71 367 78 355 6 988 4,6 Wihlborgs SEK Stockholm 755 457 196,10 116 811 148 012 31 201 8,7 Total Real Estate 1 259 869 1 546 512 286 642 90,4 Total portfolio 1 327 843 1 626 823 298 980 95,1

Pricing of the fund Company Weight Country Industry P/E (LTM)* P/E (NTM)* DivYield (LTM) DivYield (NTM) P/B ROE Fastighets Balder AB Class B 8,7% Sweden Real Estate Management & 16,4 14,6 0,0 0,0 1,2 7,5 Wihlborgs Fastigheter AB 8,7% Sweden Real Estate Management & 13,0 11,9 3,2 3,4 1,2 9,0 AB Sagax Class B 8,6% Sweden Real Estate Management & 0,0 19,6 1,5 1,4 1,5 0,0 Pandox AB Class B 4,7% Sweden Hotels Restaurants & Leisure 16,9 15,2 3,0 3,2 1,4 8,4 Victoria Park AB Class B 4,7% Sweden Real Estate Management & 23,5 19,7 1,2 1,4 1,2 5,2 Entra ASA 4,7% Norway Real Estate Management & 19,0 17,8 3,3 3,4 1,3 7,0 FastPartner AB 4,6% Sweden Real Estate Management & 13,7 12,0 2,9 3,1 1,2 8,9 Hemfosa Fastigheter AB 4,6% Sweden Real Estate Management & 11,4 11,4 4,3 4,6 1,0 9,1 Olav Thon Eiendomsselskap 4,6% Norway Real Estate Management & 13,7 13,4 1,4 1,5 0,7 5,4 Wallenstam AB Class B 4,6% Sweden Real Estate Management & 33,2 33,9 2,3 2,5 1,3 4,0 Topp 10 58,6% 18,6 15,2 2,1 2,3 1,2 6,4 ODIN Eiendom 17,8 15,4 2,7 2,8 1,2 6,6 * NTM = Next 12 months LTM = Last 12 months Adjusted earnings and fully diltuted number of shares

Current holdings

Share price performance*, year to date (Sorted by weight in portfolio) *) Share price performance for equities included in the benchmark. Equities not included in the benchmark are calculated from portfolio figures.

Contribution, year to date

Risk Statistics (3 Years), EUR Portfolio Index Active share 0,45 Sharpe ratio 1) 0,72 Standard Deviation 2) 15,37 0,87 15,60 Portfolio Alpha -1,61 Beta 0,95 Tracking error 4,13 Information ratio -0,61 1) Sharpe Ratio uses Norway - 3 MT Bills as risk free rate. 2) Standard Deviation is based upon monthly volatility.

Macro and Market

Pricing - Global Equities (MSCI World)

OECD Leading indicator Level above 100 indicates activity growth above normal in OECD area

The International Monetary Fund (IMF) Economic growth forecast

Investments

Atrium Ljungberg 250 Performance - last 5 years Company description: 200 Atrium Ljungberg owns, develops and manages properties. The primary focus is on retail and office, but also include residental properties and cultural, service and educational properties. The company is located in Greater Stockholm, Uppsala, Malmö and Gothernberg 150 100 50 0 des.12 des.13 des.14 des.15 des.16 Why invested? Atrium Ljungberg AB Class B OMX VINX / Real Estate - SS We like the company s focus on investing in significant market positions across property segments in growth areas such as Uppsala and Sickla. The company creates value both through having a larger overall property market share in its key areas, negotiations with public authorities regarding for example sub-ways, but also through extensive building activity. The company has low financial gearing compared to the sector average, pays a competitive dividend, and has high growth prospects through its building projects. We have increased our stake in the company through 2017. Atrium Ljungberg AB Class B Real Estate /Real Estate Management & Development Market Value (mill.) 17 305 Price 129,90 Price currency SEK Net debt (mill.) 17 538 Reporting currency SEK Enterprise Value (mill.) 34 843 FX rate (NOK) 0,98 Year end (December) 2012 2013 2014 2015 2016 2017E 2018E Sales (mill.) 1 836 2 364 2 313 2 468 2 300 2 395 2 496 EBIT (Operating Income - mill.) 1 177 1 249 1 268 1 350 1 349 1 542 1 615 Net Income (reported - mill.) 1 031 1 108 645 2 784 2 681 2 592 1 533 Equity 10 255 11 021 11 590 13 953 16 176 18 471 19 405 Return on Equity (%) 10,1 % 10,1 % 5,6 % 19,9 % 16,6 % 14,0 % 7,9 % EPS 7,9 8,5 4,9 20,9 20,1 8,3 8,9 Book value per share 78,8 84,7 87,0 104,7 121,4 139,0 148,7 DPS 2,9 3,1 3,3 3,6 4,0 4,3 4,5 Price/Earnings 11,0 10,3 23,5 6,4 7,1 15,7 14,5 Price/Book Value 1,1 1,0 1,3 1,3 1,2 0,9 0,9 EV/EBIT 19,3 19,0 21,3 22,7 25,0 22,6 21,6 Dividend Yield (%) 3,3 % 3,5 % 2,9 % 2,7 % 2,8 % 3,3 % 3,5 % 25

Balder Performance - last 5 years 700 Company description: Balder owns, manages and develops residential and commercial properties and hotels in Sweden, Denmark, Norway and Finland. The company has a flexible strategy by limit its own growth-restriction with respect to geography and segments. Balder is mainly invested in Sweden, but has lately also expanded rapidly in Finland. The company owns almost 4 million square meters, of which more than half is residential assets. Why invested? We like the company s exceptional growth, profitabillity and opportunistic strategy. Balder s has reduced its financial gearing the last years, and is now only slightly above sector average. The company bought back its preference shares in 2017, and has gained access to the Euro-bond market, enabling lower interest cost going forward. Balder does not pay dividend, but as long as the company continue to invest in profitable growth, this is not a worry for us. Balder remains among the three largerst investments in the fund. 600 500 400 300 200 100 0 des.12 des.13 des.14 des.15 des.16 Fastighets Balder AB Class B Fastighets Balder AB Class B OMX VINX / Real Estate - SS Real Estate /Real Estate Management & Development Market Value (mill.) 39 114 Price 217,30 Price currency SEK Net debt (mill.) 50 498 Reporting currency SEK Enterprise Value (mill.) 89 612 FX rate (NOK) 0,98 Year end (December) 2012 2013 2014 2015 2016 2017E 2018E Sales (mill.) 1 715 1 944 2 600 2 779 5 458 5 841 6 065 EBIT (Operating Income - mill.) 1 033 1 213 1 686 1 827 3 277 4 120 4 396 Net Income (reported - mill.) 1 162 1 738 3 128 4 916 5 474 5 962 2 206 Equity 8 289 11 196 14 261 20 675 27 939 36 314 39 420 Return on Equity (%) 14,0 % 15,5 % 21,9 % 23,8 % 19,6 % 16,4 % 5,6 % EPS 6,7 10,1 18,1 29,0 30,4 13,4 14,3 Book value per share 52,0 70,2 87,8 119,9 155,2 179,8 194,6 DPS - - - - #N/A - - Price/Earnings 5,6 6,5 6,1 7,2 6,1 16,3 15,2 Price/Book Value 0,7 0,9 1,3 1,7 1,2 1,2 1,1 EV/EBIT 19,0 21,9 23,6 42,9 26,1 21,8 20,4 Dividend Yield (%) 0,0 % 0,0 % 0,0 % 0,0 % #N/A 0,0 % 0,0 % 26

Castellum 250 Performance - last 5 years Company description: 200 Castellums operations are concentrated to Stockholm, Göteborg, Mälardalen, Östra Götaland and the Öresund region. The company grow along with the requirements of both new and existing customers and actively participate in the development of cities and city neighbourhoods. After the acquisitioin of Norrporten, Castellum is now the largest company in the sector with 6.000 commercial contracts, and owning 4.4 million square meters, of which 2/3 office / 1/3 warehouse. Why invested? We like the company s value creation through building and acquiring properties with high vacancy, and utilizing its large customer base to enhance value. The acquisition of Norrporten expands the company s footprint and scale. Castellum has low financial gearing compared to the sector average. In addition, the company pays a competitive dividend. 150 100 50 0 des.12 des.13 des.14 des.15 des.16 Castellum AB Castellum AB OMX VINX / Real Estate - SS Real Estate /Real Estate Management & Development Market Value (mill.) 37 483 Price 137,20 Price currency SEK Net debt (mill.) 36 890 Reporting currency SEK Enterprise Value (mill.) 74 373 FX rate (NOK) 0,98 Year end (December) 2012 2013 2014 2015 2016 2017E 2018E Sales (mill.) 3 073 3 253 3 321 3 303 4 536 5 170 5 444 EBIT (Operating Income - mill.) 1 938 2 052 2 117 2 121 2 896 3 416 3 607 Net Income (reported - mill.) 1 473 1 707 1 211 2 881 4 972 3 888 2 175 Equity 12 065 13 127 13 649 15 768 29 236 32 150 34 080 Return on Equity (%) 12,2 % 13,0 % 8,9 % 18,3 % 17,0 % 12,1 % 6,4 % EPS 7,8 9,0 6,4 15,2 21,2 8,8 9,5 Book value per share 63,8 69,4 72,2 83,4 107,0 117,0 122,0 DPS 3,4 3,7 4,0 4,3 5,0 5,3 5,7 Price/Earnings 10,3 9,6 16,5 6,9 5,9 15,5 14,5 Price/Book Value 1,3 1,3 1,5 1,3 1,2 1,2 1,1 EV/EBIT 17,6 17,5 18,1 18,9 23,3 21,8 20,6 Dividend Yield (%) 4,3 % 4,2 % 3,8 % 4,1 % 4,0 % 3,9 % 4,1 % 27

Catena 300 Performance - last 5 years Company description: Catena owns logistics and warehouse properties in Gothenburg, Helsingborg, Jönköping, Malmö and Stockholm, Sweden. Through the acquisition of Tribona in2016, the company has now reached scale and owns around 1.5m square meters Why invested? Logistics and warehouse is an interesting property-segment. Online retail is creating greater demand for such space, maintenance CAPEX is limited due to the low complexity of the buildings, and yield is high. A solid customer-mix and long lease contracts are important parameters. Balance sheet is relatively solid after the company raised equity in 2016, and growth prospects are ok. We find pricing attractive, but have sold some shares during 2017 following a strong share-price movement. 250 200 150 100 50 0 des.12 des.13 des.14 des.15 des.16 Catena AB Catena AB OMX VINX / Real Estate - SS Real Estate /Real Estate Management & Development Market Value (mill.) 5 351 Price 149,75 Price currency SEK Net debt (mill.) 6 412 Reporting currency SEK Enterprise Value (mill.) 11 764 FX rate (NOK) 0,98 Year end (December) 2012 2013 2014 2015 2016 2017E 2018E Sales (mill.) 27 337 442 495 806 803 889 EBIT (Operating Income - mill.) 17 231 299 341 557 717 683 Net Income (reported - mill.) 207 140 345 572 338 699 548 Equity 728 1 637 1 980 2 473 3 900 4 394 4 722 Return on Equity (%) 28,4 % 8,6 % 17,4 % 23,1 % 8,7 % 15,9 % 11,6 % EPS 19,3 9,8 13,5 22,3 10,2 11,8 13,8 Book value per share 62,9 65,0 77,2 96,5 109,1 123,0 132,1 DPS 1,0 2,0 3,0 3,0 3,5 4,0 5,1 Price/Earnings 3,3 10,2 7,8 5,2 12,6 12,7 10,9 Price/Book Value 1,0 1,5 1,4 1,2 1,2 1,2 1,1 EV/EBIT 58,1 18,1 19,9 18,1 19,1 16,4 17,2 Dividend Yield (%) 1,6 % 2,0 % 2,8 % 2,6 % 2,7 % 2,7 % 3,4 % 28

Corem Preferance Company description: Corem is a logistics and warehouse oriented realestate company with focus in southern part of Sweden. The company has around 1.3m square meters, which has been growing steadily the last few years. Corem also own around 15% of Klövern, another real-estate company described later in this presentation, which accounts for 13% of Corem s asset values Performance - last 5 years 250 200 150 100 50 0 des.12 des.13 des.14 des.15 des.16 Why invested? Corem Property Group AB Pref Corem Property Group AB Pref OMX VINX / Real Estate - SS Real Estate /Real Estate Management & Development We have invested in the preference shares, as we like the company, but find leverage too high in the ordinary shares, with an LTV of 64%, a bit high vacancy and 4.3 years average remaining leaseterms. We do however like the continued deleveraging of the company, which should reduce risk in the preference shares further, and as such, we find the current 6.4% annual dividend yield (paid quarterly) attractive. Market Value (mill.) 1 120 Price 155,50 Price currency SEK Net debt (mill.) - Reporting currency SEK Enterprise Value (mill.) 1 120 FX rate (NOK) 0,98 Year end (December) 2012 2013 2014 2015 2016 2017E 2018E Sales (mill.) - - - - - - - EBIT (Operating Income - mill.) - - - - - - - Net Income (reported - mill.) 72 72 72 72 72 72 72 Equity 1 120 1 120 Return on Equity (%) 6,4 % 6,4 % EPS 10,0 10,0 10,0 10,0 10,0 10,0 10,0 Book value per share 155,5 155,5 155,5 DPS 10,0 10,0 10,0 10,0 10,0 10,0 10,0 Price/Earnings 15,6 15,6 Price/Book Value 1,0 1,0 EV/EBIT Dividend Yield (%) 6,4 % 6,4 % 29

Diös Fastigheter Performance - last 5 years 300 Company description: Diös focuses on owning properties the northern part of Sweden. The company aims to have a large market across segments in cities such as Luleå, Umeå, Östersund, Sundsvall, Gävle, Skelleftå, Borlänge, Åre and Falun. After a significant acquisition from Castellums Norrporten portfolio, Diös now own around 1.5m square meters, of which half is offices. 250 200 150 100 50 0 des.12 des.13 des.14 des.15 des.16 Dios Fastigheter AB OMX VINX / Real Estate - SS Dios Fastigheter AB Real Estate /Real Estate Management & Development Why invested? We like the company s growth and strong market position in the northern part of Sweden. The company has reduced its financial gearing, and the cities in which Diös is represented, are fairly stable and show moderate growth. The company pays among the highest dividend in the sector, and produced very strong cash flows. Valuation is low, and we believe value creation will continue to come from cash flows, as yields and property valuations in northern Sweden is very stable. Market Value (mill.) 7 465 Price 55,50 Price currency SEK Net debt (mill.) 11 114 Reporting currency SEK Enterprise Value (mill.) 18 579 FX rate (NOK) 0,98 Year end (December) 2012 2013 2014 2015 2016 2017E 2018E Sales (mill.) 1 331 1 310 1 313 1 317 1 342 1 713 1 840 EBIT (Operating Income - mill.) 706 683 705 720 745 1 013 1 113 Net Income (reported - mill.) 428 323 297 530 825 977 900 Equity 3 086 3 235 3 365 3 658 4 270 6 871 7 377 Return on Equity (%) 13,9 % 10,0 % 8,8 % 14,5 % 19,3 % 14,2 % 12,2 % EPS 4,5 3,4 3,1 5,6 8,7 6,2 6,8 Book value per share 32,4 33,9 35,3 38,4 44,8 51,0 54,9 DPS 1,8 1,8 2,2 2,2 2,0 3,0 3,2 Price/Earnings 6,1 10,6 14,5 8,6 5,4 9,0 8,1 Price/Book Value 0,8 1,1 1,3 1,3 1,1 1,1 1,0 EV/EBIT 14,7 16,0 16,9 18,0 16,9 18,3 16,7 Dividend Yield (%) 6,6 % 5,0 % 4,9 % 4,7 % 4,3 % 5,3 % 5,8 % 30

Eiendomsspar Company description: Eiendomsspar was established in 1982. The company owns around 400k sqm, and is mainly exposed to offices in Oslo CBD, but also own Grand Hotell in addition to 29% of Swedish hotel company Pandox (which is described later in this report). Vi anslår at rundt halvparten av verdiene i Eiendomsspar er relatert til Pandox. Performance - last 5 years 400 350 300 250 200 150 100 50 0 des.12 des.13 des.14 des.15 des.16 Eiendomsspar AS OMX VINX / Real Estate - SS Why invested? We invested in Eiendomsspar autumn 2017 as we find the excellent track-record combined with quality assets in Oslo and low gearing more important than low share liquidity and rather high pricing. We believe the company will continue to grow and may also distribute excess cash to shareholders. (Note that Eiendomsspar applies NGAAP, not IFRS. These formalities have a negative effect on accounting measures such as book values and net income) Eiendomsspar AS Real Estate /Real Estate Management & Development Market Value (mill.) 19 822 Price 360,00 Price currency NOK Net debt (mill.) 4 753 Reporting currency NOK Enterprise Value (mill.) 24 575 FX rate (NOK) 1,00 Year end (December) 2012 2013 2014 2015 2016 2017E 2018E Sales (mill.) 586 625 662 854 797 708 760 EBIT (Operating Income - mill.) 60 360 369 437 404 397 423 Net Income (reported - mill.) 347 280 782 2 236 1 192 392 489 Equity 2 311 2 669 2 697 3 015 5 461 6 115 6 424 Return on Equity (%) 15,0 % 10,5 % 29,0 % 74,2 % 21,8 % 6,4 % 7,6 % EPS 8,4 6,8 19,4 55,9 30,0 12,1 12,3 Book value per share 55,9 64,8 67,2 75,5 137,6 153,8 161,6 DPS 3,3 17,0 3,8 49,0 4,3 4,5 4,8 Price/Earnings 18,1 22,6 9,9 5,1 12,7 29,9 29,3 Price/Book Value 2,7 2,4 2,9 3,8 2,8 2,3 2,2 EV/EBIT 188,2 31,4 36,6 36,9 49,8 62,0 58,1 Dividend Yield (%) 2,1 % 11,1 % 2,0 % 17,1 % 1,1 % 1,3 % 1,3 % 31

Entra 250 Performance - last 5 years Company description: 200 Entra was listed in 2014, and is one of Norway's largest real estate companies. Around 90% of the company s properties are offices, 50% is in Oslo and 70% of the rents has public counterparties. Entra has an extensive development portfolio. The company is owned 50% by the Norwegian government. 150 100 50 0 des.12 des.13 des.14 des.15 des.16 Entra ASA OMX VINX / Real Estate - SS Why invested? We like the company s long contracts (7.5 years remaining on average) with public tenants. This provides a higher visibility than most other real estate companies. We also believe there is earnings upside through further growth driven by Entra s significant project portfolio. The company has low financial gearing compared to the sector average and pays a competitive dividend. The share price has been very strong through 2017 and been a key contributor to our performance. Entra ASA Real Estate /Real Estate Management & Development Market Value (mill.) 21 037 Price 114,50 Price currency NOK Net debt (mill.) 17 796 Reporting currency NOK Enterprise Value (mill.) 38 833 FX rate (NOK) 1,00 Year end (December) 2012 2013 2014 2015 2016 2017E 2018E Sales (mill.) 1 533 1 684 2 018 2 015 2 858 2 075 2 203 EBIT (Operating Income - mill.) 1 067 1 216 1 420 1 438 1 621 1 786 1 897 Net Income (reported - mill.) 704 453 1 027 2 648 2 619 3 374 1 026 Equity 7 824 7 879 10 778 12 995 14 732 17 399 17 811 Return on Equity (%) 9,0 % 5,8 % 9,5 % 20,4 % 17,8 % 19,4 % 5,8 % EPS 5,0 3,2 22,3 14,0 14,0 6,4 6,9 Book value per share 55,0 55,4 58,7 70,7 80,2 92,3 93,7 DPS 2,5 3,0 3,5 4,0 4,2 Price/Earnings 3,4 5,1 6,1 17,8 16,7 Price/Book Value 1,3 1,0 1,1 1,2 1,2 EV/EBIT 12,9 19,8 21,0 21,7 20,5 Dividend Yield (%) 3,3 % 4,2 % 4,0 % 3,5 % 3,7 % 32

Fabege Performance - last 5 years 350 Company description: Fabege manages and developments properties in the Stockholm region. The property portfolio, which is 70% offices, is located both in CBD and around Solna. The company has a significant project portfolio of more or less fully letted development projects to be finalized in 2018, and contribute to a sharpe increase in rental revenues going forward. 300 250 200 150 100 50 0 des.12 des.13 des.14 des.15 des.16 Fabege AB OMX VINX / Real Estate - SS 33 Why invested? We like the company s strong focus on the Stockholm region, and focus on growth areas such as Solna. We also like the company s value creation through expanding the portfolio through building activities. Fabege has revalued its portfolio substantially through the last two years, which partly has been invested in the development portfolio, and partly reduced loan-to value. We find risk quite high in Fabege, but with the rocketing Stockholm-rents combined with pure focus on Swedens capitol, the Fabege share price has been really strong lately. Pricing of the share is high, but maybe not unfair given high expected earnings growth driven by higher rents and finalized projects. Fabege AB Real Estate /Real Estate Management & Development Market Value (mill.) 29 192 Price 176,50 Price currency SEK Net debt (mill.) 24 123 Reporting currency SEK Enterprise Value (mill.) 53 315 FX rate (NOK) 0,98 Year end (December) 2012 2013 2014 2015 2016 2017E 2018E Sales (mill.) 1 893 2 089 2 112 2 029 2 132 2 276 2 564 EBIT (Operating Income - mill.) 1 224 1 379 1 443 1 395 1 464 1 575 1 756 Net Income (reported - mill.) -88 1 530 1 738 3 232 7 107 4 655 2 164 Equity 11 404 12 551 13 783 16 479 23 002 27 687 29 208 Return on Equity (%) -0,8 % 12,2 % 12,6 % 19,6 % 30,9 % 16,8 % 7,4 % EPS -0,5 9,3 10,5 19,5 43,0 5,8 6,6 Book value per share 69,7 75,9 83,3 99,6 139,1 165,4 171,8 DPS 3,0 3,0 3,3 3,5 4,0 4,3 4,5 Price/Earnings -121,8 8,3 9,6 7,2 3,5 30,3 26,8 Price/Book Value 0,9 1,0 1,2 1,4 1,1 1,1 1,0 EV/EBIT 23,3 22,9 25,0 31,6 31,7 33,9 30,4 Dividend Yield (%) 4,6 % 3,9 % 3,2 % 2,5 % 2,7 % 2,4 % 2,5 %

FastPartner Performance - last 5 years 400 Company description: FastPartner owns and develops properties around the Stockholm region. The company has it main focus on commercial properties, primarily offices, but the company also plan to develop residental properties on land they own around the Stockholm region. FastPartner has historically shown excellent growth, and now owns 1.4m square meters. 350 300 250 200 150 100 50 0 des.12 des.13 des.14 des.15 des.16 FastPartner AB OMX VINX / Real Estate - SS Why invested? We like the company s strong focus on the Stockholm region, and believe their residental development plans are underrated by the financial market. FastPartner strenghened its balance sheet in the second half of 2016, and current LTV of 57% is gives the company flexibility to grow further. We find pricing attractive compared to return on equity and growth prospects. We have purchased more shares in FastPartner during 2017 as we have utilized weak share price and we believe there is significant upside FastPartner AB Real Estate /Real Estate Management & Development Market Value (mill.) 9 107 Price 140,00 Price currency SEK Net debt (mill.) 9 900 Reporting currency SEK Enterprise Value (mill.) 19 007 FX rate (NOK) 0,98 Year end (December) 2012 2013 2014 2015 2016 2017E 2018E Sales (mill.) 639 775 925 1 140 1 276 1 345 1 463 EBIT (Operating Income - mill.) 375 485 591 749 828 892 978 Net Income (reported - mill.) 318 273 463 1 207 1 599 1 320 587 Equity 2 308 2 945 3 271 4 315 6 435 7 256 8 009 Return on Equity (%) 13,8 % 9,3 % 14,2 % 28,0 % 24,8 % 18,2 % 7,3 % EPS 5,9 4,4 7,8 21,4 28,2 9,8 11,3 Book value per share 42,5 53,9 59,9 78,4 106,4 118,0 123,0 DPS 2,7 3,0 3,4 3,7 4,0 4,3 4,5 Price/Earnings 9,4 16,4 13,6 6,9 4,8 14,3 12,3 Price/Book Value 1,3 1,3 1,8 1,9 1,3 1,2 1,1 EV/EBIT 21,2 20,8 22,7 23,9 20,4 21,3 19,4 Dividend Yield (%) 4,8 % 4,2 % 3,2 % 2,5 % 2,9 % 3,1 % 3,2 % 34

Heba 250 Performance - last 5 years Company description: Heba is one of the smaller listed real estate companies in the Nordics. The company s operations are based on residental properties around Stockholm, and account for around 233k sqm. 200 150 100 50 0 des.12 des.13 des.14 des.15 des.16 HEBA Fastighets AB Class B OMX VINX / Real Estate - SS Why invested? Although residential prices have declined in 2017, rents have been increasing due to refurbishing and higher underlying rents (which are mainly regulated). In addition, Heba has finalized projects that have contributed positively to results. The company has very low leverage with an LTV of only 36%. That said, the company has revalued its portfolio continuously and operates with a very low yield. We like the quality and location of the company s assets, and despite pricing based on earnings is high, we believe the underlying growth and value of the properties should be high. We bought our shares in Heba in 2017. HEBA Fastighets AB Class B Market Value (mill.) 4 479 Price 108,50 Price currency SEK Net debt (mill.) 2 999 Reporting currency SEK Enterprise Value (mill.) 7 478 FX rate (NOK) 0,98 Year end (December) 2012 2013 2014 2015 2016 2017E 2018E Sales (mill.) 231 249 268 284 297 EBIT (Operating Income - mill.) 120 135 147 159 164 Net Income (reported - mill.) 327 184 126 903 372 Equity 2 617 2 756 2 832 3 681 3 991 Return on Equity (%) 12,5 % 6,7 % 4,4 % 24,5 % 9,3 % EPS 7,9 4,5 3,1 21,9 9,0 Book value per share 63,4 66,8 68,6 89,2 96,7 DPS 1,1 1,2 1,3 1,5 1,6 Price/Earnings 8,0 16,9 31,9 4,6 12,6 Price/Book Value 1,0 1,1 1,4 1,1 1,2 EV/EBIT 31,4 33,1 38,5 38,0 43,4 Dividend Yield (%) 1,7 % 1,6 % 1,3 % 1,5 % 1,4 % Real Estate /Real Estate Management & Development 35

Hemfosa Performance - last 5 years 300 Company description: Hemfosa has two different division. Firstly, long-term management and development of primarily community service properties and, secondly, a more transaction property portfolio. The approach enables the company to create a balanced property portfolio that generates stable and high yields, thus enabling it to develop and add value to even more properties. Hemfosa has around 2.9m square meters, of which 64% is public properties such as schools, retirement homes, prisons. 250 200 150 100 50 0 des.12 des.13 des.14 des.15 des.16 Hemfosa Fastigheter AB Hemfosa Fastigheter AB OMX VINX / Real Estate - SS Real Estate /Real Estate Management & Development Market Value (mill.) 19 228 Price 109,30 Price currency SEK Net debt (mill.) 22 554 Reporting currency SEK Enterprise Value (mill.) 41 782 FX rate (NOK) 0,98 36 Why invested? We like the company s high growth, focus on long contracts with a different kind of public tenants. This both helps diversify our portfolio, but should also be very cash flow friendly as yields are high, interest cost is low, and contracts are long. Hemfosa did recently initiate a process in order to investigate splitting the company into two separate units. This has triggered a repricing of the company, as the public property division should be priced at higher, implying higher value for the total company. In addition, we find the Year end (December) 2012 2013 2014 2015 2016 2017E 2018E Sales (mill.) 1 594 1 584 1 683 2 445 2 664 3 124 3 225 EBIT (Operating Income - mill.) 924 968 1 071 1 560 1 711 2 209 2 347 Net Income (reported - mill.) 923 231 964 2 324 3 556 2 917 1 406 Equity 2 176 2 368 8 689 10 737 15 506 17 899 18 754 Return on Equity (%) 42,4 % 9,8 % 11,1 % 21,6 % 22,9 % 16,3 % 7,5 % EPS 8,3 14,9 21,1 9,6 9,6 Book value per share 59,0 72,4 91,9 105,6 116,5 DPS 2,9 4,2 4,4 4,8 5,0 Price/Earnings 9,5 6,1 4,0 11,4 11,4 Price/Book Value 1,3 1,3 0,9 1,0 0,9 EV/EBIT 22,6 20,3 19,8 18,9 17,8 Dividend Yield (%) 3,6 % 4,6 % 5,2 % 4,3 % 4,6 %

Hufvudstaden Performance - last 5 years 250 Company description: Hufvudstaden provides office and retailing premises in prime locations in Stockholm and Gothenburg. The company has a long history, it was founded in already in 1915. Hufudstaden today owns around 400k sqm, office and retail space in the prime city centers of Stockholm and Gothenburg. 200 150 100 50 0 des.12 des.13 des.14 des.15 des.16 Why invested? Hufvudstaden AB Class A Hufvudstaden AB Class A OMX VINX / Real Estate - SS Real Estate /Real Estate Management & Development 37 We like the company s prime property portfolio. Hufuvdstaden has properties in very attractive locations in Stockholm and Gothenburg, including the NK shopping centers in both cities. Rents in Stockholm has been increasing sharply, and should contribute to earnings growth going forward whan contracts are renewed. Vacancy risk is low, but one should expect higher volatility in general rent levels. In addition, Hufvudstaden has very low financial gearing compared to the sector average, In addition, the company pays a moderate dividend. Share price has been weak in 2017 due to fears from online retail. We have net acquired shares in the company in 2017. Market Value (mill.) 29 898 Price 134,80 Price currency SEK Net debt (mill.) 5 925 Reporting currency SEK Enterprise Value (mill.) 35 823 FX rate (NOK) 0,98 Year end (December) 2012 2013 2014 2015 2016 2017E 2018E Sales (mill.) 1 542 1 640 1 669 1 690 1 790 1 758 1 824 EBIT (Operating Income - mill.) 1 051 1 117 1 131 1 135 1 220 1 265 1 344 Net Income (reported - mill.) 1 939 1 876 2 001 3 470 4 120 2 343 927 Equity 13 921 15 261 16 695 19 567 23 047 25 342 26 205 Return on Equity (%) 13,9 % 12,3 % 12,0 % 17,7 % 17,9 % 9,2 % 3,5 % EPS 9,4 9,1 9,7 16,8 20,0 4,7 5,0 Book value per share 67,5 74,0 80,9 94,9 111,7 123,0 126,8 DPS 2,6 2,8 2,9 3,1 3,3 3,5 3,7 Price/Earnings 8,7 9,5 10,5 7,1 7,2 28,6 26,9 Price/Book Value 1,2 1,2 1,3 1,3 1,3 1,1 1,1 EV/EBIT 20,1 20,6 23,1 26,5 28,9 28,3 26,7 Dividend Yield (%) 3,2 % 3,2 % 2,9 % 2,6 % 2,3 % 2,6 % 2,7 %

Klövern Preferance 250 Performance - last 5 years Company description: Klövern focuses on getting leading market positions in growth areas in Sweden, such as Stockholm, Gothenburg, Linköping, Uppsala and Västerås. 66% of the portfolio is offices, but warhouse, public properties and retail is also represented. Klövern also has a portfolio of residental development projects in the pipeline, but production is mainly se to start in 2019. 200 150 100 50 0 des.12 des.13 des.14 des.15 des.16 Klovern AB Pref. shs OMX VINX / Real Estate - SS Klovern AB Pref. shs Real Estate /Real Estate Management & Development Why invested? We have invested in the preference shares, as we like the company, but find leverage too high in the ordinary shares, with an LTV of 69%, and a bit high vacancy. We do however like the continued deleveraging of the company, which should reduce risk in the preference shares further, and as such, we find the current 6.5% annual dividend yield (paid quarterly) attractive. Market Value (mill.) 5 098 Price 310,00 Price currency SEK Net debt (mill.) - Reporting currency SEK Enterprise Value (mill.) 5 098 FX rate (NOK) 0,98 Year end (December) 2012 2013 2014 2015 2016 2017E 2018E Sales (mill.) EBIT (Operating Income - mill.) Net Income (reported - mill.) 329 329 329 329 329 329 329 Equity 5 098 5 098 5 098 Return on Equity (%) 6,5 % 6,5 % 6,5 % EPS 20,0 20,0 20,0 20,0 20,0 20,0 20,0 Book value per share 279,9 279,9 279,9 279,9 279,9 279,9 279,9 DPS 20,0 20,0 20,0 20,0 20,0 20,0 20,0 Price/Earnings 15,5 15,5 Price/Book Value 1,1 1,1 EV/EBIT Dividend Yield (%) 6,5 % 6,5 % 38

Performance - last 5 years NP3 Fastigheter Company description: NP3, which is one of the smaller real-estate companies in the Nordics, operates in northern Sweden, with main focus on Sundsvall, Gävle, Dalarna, Östersund. Umeå and Luleå. The company has 900k sqms of offices, retail and warehouses located in the outskirt of these cities. NP3 was established in 2010 and listed late 2014. 180 160 140 120 100 80 60 40 20 0 des.12 des.13 des.14 des.15 des.16 NP3 Fastigheter AB OMX VINX / Real Estate - SS NP3 Fastigheter AB Real Estate /Real Estate Management & Development Why invested? We like NP3 s strong market position and growth strategy in its core areas. There is very limited building activity, and rent levels are very stable and cash flow strong. LTV is a bit high, but there has been limited revaluations in the company s portfolio, which is valued at only 814 EUR/sqm. Dividend yield is excellent and pricing is low. We acquired our shares in NP3 in 2017. Market Value (mill.) 2 706 Price 49,80 Price currency SEK Net debt (mill.) 4 418 Reporting currency SEK Enterprise Value (mill.) 7 124 FX rate (NOK) 0,98 Year end (December) 2012 2013 2014 2015 2016 2017E 2018E Sales (mill.) 90 149 251 409 530 676 760 EBIT (Operating Income - mill.) 54 91 171 268 348 639 646 Net Income (reported - mill.) 20 39 141 188 407 439 417 Equity 125 236 1 540 1 773 2 266 2 575 2 843 Return on Equity (%) 16,4 % 16,5 % 9,2 % 10,6 % 18,0 % 17,1 % 14,7 % EPS 5,5 3,8 7,9 8,1 7,7 Book value per share 31,8 35,2 41,7 52,2 61,4 DPS 0,5 2,2 2,4 2,8 3,3 Price/Earnings 6,3 11,4 5,8 6,2 6,5 Price/Book Value 1,1 1,2 1,1 1,0 0,8 EV/EBIT 16,4 17,5 17,1 11,1 11,0 Dividend Yield (%) 1,4 % 5,0 % 5,2 % 5,5 % 6,7 % 39

Olav Thon Eiendomsselskap Performance - last 5 years 250 Company description: Olav Thon Eiendomsselskap was founded in 1982 and listed in 1983. Focus has all the way been on shopping centers in Norway where the company is the leading player, but last year the company also expanded into Sweden. The company has around 1.5m square meters, of which 81% retail, whil the rest is office properties. 200 150 100 50 0 des.12 des.13 des.14 des.15 des.16 Olav Thon Eiendomsselskap ASA OMX VINX / Real Estate - SS 40 Why invested? We like the excellent historic growth and stable earnings development. Shopping centers face a challenging trend as online shopping is continuing to gain momentum, following a weak share-price development in 2017, leading to the share trading among the lowest multiples in the sector, we do believe that the market has a very negative view on the future. Through the financial crisis retail sales shown a resilient trend, hence, we are not too concerned with less optimistic outlook for Norwegian economy. OLT has low financial gearing compared to the sector average. Dividend is quite low, but the company re-invests in further growth Olav Thon Eiendomsselskap ASA Real Estate /Real Estate Management & Development Market Value (mill.) 16 499 Price 155,00 Price currency NOK Net debt (mill.) 21 301 Reporting currency NOK Enterprise Value (mill.) 37 800 FX rate (NOK) 1,00 Year end (December) 2012 2013 2014 2015 2016 2017E 2018E Sales (mill.) 2 946 3 055 3 020 3 273 3 585 3 629 3 760 EBIT (Operating Income - mill.) 1 777 1 888 1 791 1 909 2 107 2 472 2 490 Net Income (reported - mill.) 1 119 1 648 1 170 3 666 3 582 2 863 1 371 Equity 11 289 12 935 13 920 17 610 20 950 23 481 24 593 Return on Equity (%) 9,9 % 12,7 % 8,4 % 20,8 % 17,1 % 12,2 % 5,6 % EPS 10,5 16,1 11,0 34,4 34,0 11,9 12,2 Book value per share 106,1 121,5 130,8 165,4 197,0 220,4 230,9 DPS 1,2 1,4 1,6 1,8 2,0 2,2 2,4 Price/Earnings 8,5 6,7 11,4 4,1 4,7 13,0 12,7 Price/Book Value 0,8 0,9 1,0 0,9 0,8 0,7 0,7 EV/EBIT 13,1 13,8 16,7 17,5 18,2 15,3 15,2 Dividend Yield (%) 1,3 % 1,3 % 1,3 % 1,3 % 1,3 % 1,4 % 1,5 %

Pandox Performance - last 5 years 180 Company description: Pandox owns and operate hotel properties. The company owns 122 hotels with around 27k rooms together, of which 107 hotels are leased to third parties. 41% of the rooms are under the Scandic brand. 12 out of the 15 hotels the company operate itself, is located in Belgium and Germany, making Pandox the only listed company in the Nordics with a significant share of values outside its home region. 160 140 120 100 80 60 40 20 0 des.12 des.13 des.14 des.15 des.16 Pandox AB Class B OMX VINX / Real Estate - SS Pandox AB Class B Consumer Discretionary /Hotels Restaurants & Leisure 41 Why invested? The important indicator RevPAR (Revenue per available room) has developed solidely, which has benefited Pandox. Hotels are more cyclical and there is shorter visibility than other real-estate segments, as the rents are based on the operator revenues from room-rent and food/beverage (usually there is a minimum-rent as a floor). We believe Pandox is well managed, have quality assets, low gearing and pricing is relatively attractive. We acquired a small position in the company in late 2016, and have increased our stake further in 2017. Market Value (mill.) 23 436 Price 148,80 Price currency SEK Net debt (mill.) 19 562 Reporting currency SEK Enterprise Value (mill.) 42 998 FX rate (NOK) 0,98 Year end (December) 2012 2013 2014 2015 2016 2017E 2018E Sales (mill.) 2 126 2 293 3 392 3 592 3 946 4 280 4 477 EBIT (Operating Income - mill.) 580 581 1 114 1 468 1 671 2 056 2 150 Net Income (reported - mill.) 364 131 1 216 2 131 2 201 2 259 1 508 Equity 3 119 5 237 10 402 12 092 15 081 17 207 18 862 Return on Equity (%) 11,7 % 2,5 % 11,7 % 17,6 % 14,6 % 13,1 % 8,0 % EPS 14,2 14,7 9,8 10,3 Book value per share 80,6 95,8 126,3 138,5 DPS 3,8 4,1 4,8 5,0 Price/Earnings 11,0 9,7 15,2 14,4 Price/Book Value 1,9 1,5 1,2 1,1 EV/EBIT 26,5 23,8 20,9 20,0 Dividend Yield (%) 2,4 % 2,9 % 3,2 % 3,4 %

Performance - last 5 years Sagax 600 500 Company description: Sagax invests in primarily in the warehouse and light industry segment. The company has around 2.4m square meters, of which 42% is in Sweden (31% Stockholm), 43% Finland (26% Helsinki), and remaining 15% is located in Netherlands and France. Sagax has lately seen better investment oppertunities outside the Nordics, and we expect this trend to continue going forward. 400 300 200 100 0 des.12 des.13 des.14 des.15 des.16 AB Sagax Class B AB Sagax Class B OMX VINX / Real Estate - SS Real Estate /Real Estate Management & Development Market Value (mill.) 17 862 Price 96,10 Price currency SEK Net debt (mill.) 12 520 Reporting currency SEK Enterprise Value (mill.) 30 382 FX rate (NOK) 0,98 42 Why invested? The combination of long lease-contracts, high yield, low CAPEX, low vacancy and profitable reinvestments have helped the Sagax share to be among the absolute best in the sector. Sagax is one of our three largest investments, and we believe the company will continue to create values. We believe the company will achieve a debt rating near term, enabling Eurobondfunding at better terms than currently, which should contribute to further earnings growth for Sagax. The company has also started to pay Year end (December) 2012 2013 2014 2015 2016 2017E 2018E Sales (mill.) 826 929 1 098 1 295 1 574 EBIT (Operating Income - mill.) 672 756 891 1 049 1 259 Net Income (reported - mill.) 372 777 747 1 681 2 453 Equity 2 794 3 723 4 544 5 981 8 709 Return on Equity (%) 13,3 % 20,9 % 16,4 % 28,1 % 28,2 % EPS 20,3 4,4 4,0 9,9 14,5 Book value per share 189,6 23,0 28,1 37,1 54,2 DPS 217,9 0,6 0,8 1,2 1,5 Price/Earnings 5,5 10,9 7,3 5,6 Price/Book Value 1,1 1,6 1,9 1,5 EV/EBIT 14,1 17,3 20,7 20,1 Dividend Yield (%) 2,3 % 1,8 % 1,6 % 1,8 %

Performance - last 5 years Victoria Park Company description: Victoria Park acquires, develops and manages residental properties in growth areas in Sweden such as Stockholm, Malmö and Gothenburg. An important part of the company s business is refurbishing apartments when tenants move. The apartments are typically quite old, and after refurbishment, Victoria Park can increase rents (which are publically regulated), and this investment has a strong return. Currently, Victoria Park has around 1.1m sqm (of which 90% residental), but this number grows rapidely. 500 450 400 350 300 250 200 150 100 50 0 des.12 des.13 des.14 des.15 des.16 Victoria Park AB Class B Victoria Park AB Class B OMX VINX / Real Estate - SS Real Estate /Real Estate Management & Development Market Value (mill.) 7 264 Price 28,90 Price currency SEK Net debt (mill.) 7 691 Reporting currency SEK Enterprise Value (mill.) 14 955 FX rate (NOK) 0,98 Year end (December) 2012 2013 2014 2015 2016 2017E 2018E 43 Why invested? Although residential prices have declined in 2017, rents have been increasing due to refurbishing and higher underlying rents (which are mainly regulated). We are impressed with the growth and return on invested capital, and as a result, share price has developed excellently in 2017. Pricing is relatively high, but with strong growth and lower gearing, we find outlook positive. Sales (mill.) 247 130 299 623 833 1 063 1 160 EBIT (Operating Income - mill.) 22 14 91 264 357 503 576 Net Income (reported - mill.) 60 410 310 1 240 1 182 1 405 547 Equity 173 901 1 480 2 826 4 331 5 744 6 479 Return on Equity (%) 34,9 % 45,5 % 20,9 % 43,9 % 27,3 % 24,5 % 8,4 % EPS 1,8 5,5 5,2 1,3 1,5 Book value per share 7,2 12,7 18,0 23,9 26,7 DPS 15,0 0,2 0,3 0,4 0,4 Price/Earnings 3,4 2,7 4,3 23,1 19,4 Price/Book Value 0,8 1,2 1,2 1,2 1,1 EV/EBIT 55,4 27,5 33,9 29,7 26,0 Dividend Yield (%) 243,9 % 1,3 % 1,3 % 1,2 % 1,4 %

Performance - last 5 years Wallenstam Company description: Wallenstam was established in 1944. The company operates in Stockholm and Gothenburg, owning in total 1.1m sqm, of which almos half is residental, but also some offices and retail properties. In addition, Wallestam has a significant development portfolio of residental projects, totaling around 2.350 apartments in addition to owning 64 wind turbins. 300 250 200 150 100 50 0 des.12 des.13 des.14 des.15 des.16 Wallenstam AB Class B Wallenstam AB Class B OMX VINX / Real Estate - SS Real Estate /Real Estate Management & Development Market Value (mill.) 25 971 Price 78,70 Price currency SEK Net debt (mill.) 17 623 Reporting currency SEK Enterprise Value (mill.) 43 594 FX rate (NOK) 0,98 Why invested? Wallenstam has shown good growth the last few years. We like the combination of a considerable development portfolio and relatively low gearing and very low vacancy. The company has high quality assets in attractive locations. The share is not cheap, but we view outlook as positive and believe the company manages risk well in addition to paying a moderate dividend. Year end (December) 2012 2013 2014 2015 2016 2017E 2018E Sales (mill.) 1 768 1 755 2 918 3 075 2 013 1 257 1 357 EBIT (Operating Income - mill.) 876 878 1 196 1 200 975 1 061 1 142 Net Income (reported - mill.) 1 927 1 277 585 2 743 3 348 1 955 1 196 Equity 11 890 12 838 12 883 15 090 17 776 19 377 20 521 Return on Equity (%) 16,2 % 9,9 % 4,5 % 18,2 % 18,8 % 10,1 % 5,8 % EPS 5,7 3,8 1,8 8,2 10,1 2,4 2,3 Book value per share 35,0 38,0 38,6 45,5 54,0 58,9 61,9 DPS 0,6 1,0 1,1 1,5 1,7 1,8 2,0 Price/Earnings 7,0 13,0 37,1 8,3 7,0 33,1 33,8 Price/Book Value 1,1 1,3 1,7 1,5 1,3 1,3 1,3 EV/EBIT 33,4 37,3 30,8 31,5 40,8 41,1 38,2 Dividend Yield (%) 1,6 % 2,1 % 1,7 % 2,2 % 2,4 % 2,3 % 2,5 % 44

Wihlborgs 300 250 Performance - last 5 years Company description: Wihlborgs' property portfolio consists of commerical properties in the Öresund region, located in Malmö, Helsingborg, Lund and Copenhagen. The property portfolio is constantly enhanced by acquisition, development and sale of properties. The company has grown sharply the last years, and now own around 2m sqm, of which the vast majority is office and warehouse. 200 150 100 50 0 des.12 des.13 des.14 des.15 des.16 Wihlborgs Fastigheter AB Wihlborgs Fastigheter AB OMX VINX / Real Estate - SS Real Estate /Real Estate Management & Development Market Value (mill.) 15 033 Price 195,60 Price currency SEK Net debt (mill.) 20 118 Reporting currency SEK Enterprise Value (mill.) 35 151 FX rate (NOK) 0,98 45 Why invested? We like the growth Wihlborgs has generated through acquisitions and development of properties in the challenging Scania region. Management has a strong track record which we expect to continue. Wihlborgs has reduced its financial gearing, and we find pricing attractive compared to the strong historical growth and outlook. In addition, Wihlborgs pays a dividend above sector average. The company remain one of our top three investments in the fund. Year end (December) 2012 2013 2014 2015 2016 2017E 2018E Sales (mill.) 1 654 1 913 2 124 2 199 2 046 2 282 2 489 EBIT (Operating Income - mill.) 1 057 1 215 1 376 1 412 1 476 1 658 1 826 Net Income (reported - mill.) 823 1 063 395 2 278 2 976 1 750 1 135 Equity 6 138 6 894 6 967 8 876 11 463 13 027 14 065 Return on Equity (%) 13,4 % 15,4 % 5,7 % 25,7 % 26,0 % 13,4 % 8,1 % EPS 10,7 13,8 5,1 29,6 38,7 15,1 16,5 Book value per share 79,9 89,7 90,6 115,5 149,1 168,0 182,8 DPS 4,0 4,3 4,8 5,3 5,8 6,3 6,8 Price/Earnings 9,5 8,3 27,8 5,8 4,4 12,9 11,9 Price/Book Value 1,3 1,3 1,6 1,5 1,1 1,2 1,1 EV/EBIT 18,4 18,6 18,2 20,8 20,5 21,2 19,3 Dividend Yield (%) 3,9 % 3,7 % 3,3 % 3,1 % 3,4 % 3,2 % 3,5 %

About ODIN

Investment Objective Long term value creation

Investment Philosophy Performance - prospects - price

Esittelyssä ODIN Kiinteistö C ODIN Kiinteistö C on aktiivisesti hallinnoitu osakerahasto, joka sijoittaa Pohjoismaissa pörssinoteerattuihin tai näitä maita kotipaikkanaan tai niissä pääkonttoriaan pitäviin osakeyhtiöihin, joiden toimiala on lähinnä kiinteistöt. Tietoja rahastosta Vastaava salkunhoitaja Thomas Nielsen Rahaston pitkän aikavälin tavoitteena on saavuttaa pörssinoteerattujen kiinteistöyhtiöiden osakkeiden tuottoa parempi tuotto suhteessa rahaston vertailuindeksiin. Alkaen 11.8.2014 Vertailuindeksi Carnegie Sweden Real Estate Perusvaluutta NOK Hallinnointipalkkio 2 % Merkintä-/lunastuspalkkio 0 % Pienin merkintäsumma 500 EUR

Salkunhoitaja Thomas Nielsen vastaa ODIN Kiinteistö rahaston salkunhoidosta. Hän on ekonomi ja omaa yli kymmenen vuoden kokemuksen analyytikon tehtävistä. Thomas tuntee hyvin pohjosmaiset osakemarkkinat ja hän on työskennellyt muun muassa Fondsfinansissa, Kaupthingissa ja Paretossa. ODINilla hän aloitti elokuussa 2013.

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