{"segments": [{"speakerId": "spk1", "sentences": [{"start": 0, "end": 3, "text": "Good morning and welcome to Citycon."}, {"start": 3, "end": 10, "text": "Q2 Results webcast. My name is Walter Pirie, and I'm working as the legal and investor relations manager here at Citycon."}, {"start": 11, "end": 17, "text": "Today with me, we have our CEO Henrik Enstrom and CFO Sakari Järvelä."}, {"start": 19, "end": 22, "text": "They will now present the key highlights from the first half of the year."}, {"start": 23, "end": 26, "text": "And after that, we will open the line for questions.
"}, {"start": 27, "end": 28, "text": "Henrik, please go ahead."}]}, {"speakerId": "spk2", "sentences": [{"start": 30, "end": 35, "text": "Thank you. And welcome also on my behalf to this Q2 webcast."}, {"start": 38, "end": 47, "text": "The first half of the year was characterized, again, by a strong underlying business performance: like-for-like net rental income increased by 5.9%."}, {"start": 47, "end": 52, "text": "And that was supported by both rental escalations and also strong performance in our core assets."}, {"start": 54, "end": 64, "text": "Total net rental income grew a little more by 9.9%, and that was supported by an acquisition, which was executed in February this year.
"}, {"start": 65, "end": 86, "text": "Earnings increased by 5.4% following the strong net rental income development and were slightly offset by the higher administrative expenses due to one-time reorganization costs and the increased financial expenses. Like-for-like tenancies increased 2.6%."}, {"start": 86, "end": 95, "text": "All our main retail segments continue to show strong sales growth, and retail occupancy landed at a solid 95.2%."}, {"start": 97, "end": 102, "text": "A strong operational performance is also supporting the development of our fair values."}, {"start": 102, "end": 112, "text": "There were small upward yield revisions in a few of our prime assets, but these changes were more than offset by positive cash flow growth driven by rent indexation."}, {"start": 113, "end": 118, "text": "In general, I would say we see a stabilization in the valuations in the market.
"}, {"start": 121, "end": 125, "text": "Average rents increased by 4.8% compared to last year."}, {"start": 126, "end": 133, "text": "Leasing spreads have remained flat on average, meaning that we've been able to push through the full indexation to our tenants."}, {"start": 134, "end": 143, "text": "And it's good to note that the occupancy cost ratio has remained at a modest level, and that is due to the fact that the tenant sales have increased at the same pace as rents."}, {"start": 144, "end": 149, "text": "Because of the low OCR, we see more room for rental growth going forward."}, {"start": 150, "end": 158, "text": "Occupancy increased by 30 basis points from the last quarter and has increased by 70 basis points compared to Q2 last year.
"}, {"start": 158, "end": 161, "text": "And we continue to see good demand in our assets."}, {"start": 165, "end": 169, "text": "Like-for-like net rental income development was strong throughout our Nordic portfolio."}, {"start": 170, "end": 191, "text": "Our strategy to focus on everyday convenience with grocery and public service anchors works equally well in all of our markets, and it's good to note that our like-for-like net rental income development has been above the average indexation as we've been able to increase both occupancy recovery rates and also other income items, like for example, specialty leasing and parking income."}, {"start": 193, "end": 202, "text": "Like-for-like net rental income increased by 6.3% in Norway, which is currently the strongest market in our portfolio in terms of consumer spending and tenant demand.
"}, {"start": 203, "end": 207, "text": "In Sweden, the net rental income increased by 10.7%."}, {"start": 208, "end": 217, "text": "The high increase was, however, partly due to some negative one-time items in the comparison period and also in Finland and Estonia."}, {"start": 217, "end": 222, "text": "We have strong growth figures following the acquisition."}, {"start": 223, "end": 234, "text": "Approximately 21% of our net rental income is generated in Sweden, and Finland is still our biggest segment, with 37% share of the net rental income, followed by Norway with 28%."}, {"start": 237, "end": 245, "text": "As mentioned, like-for-like tenancies were up 2.6% and this was due to strong performance, especially in Norway and Finland.
"}, {"start": 246, "end": 257, "text": "Consumer confidence is slowly improving also in Sweden, and our sales development was particularly impacted by Kista Galleria, where we are doing relocations in the tenant mix."}, {"start": 258, "end": 269, "text": "And it's good to note that the average purchase continues to increase in our portfolio, and this is due to the fact that commuter levels remain low, yet buying customers continue to come and spend."}, {"start": 272, "end": 276, "text": "And then to the balance sheet side, which is a key focus area for us."}, {"start": 277, "end": 284, "text": "During the second quarter, we continued our actions to improve our credit maturity profile and liquidity buffers among them."}, {"start": 284, "end": 289, "text": "We did the exchange for the 2024 hybrid bond for a new hybrid bond and a cash amount."}, {"start": 289, "end": 310, "text": "We did an early redemption for the remaining amount of the bond maturing in October 2024, also known as the 2024 maturity bond, and we also extended our revolving credit facility and term loan. All of these build on the actions we already took in Q1 and are very important steps in improving our credit profile."}, {"start": 311, "end": 314, "text": "And Sakari will comment on this more in detail shortly.
"}, {"start": 317, "end": 320, "text": "Divestments are a key element for de-risking our balance sheet."}, {"start": 320, "end": 331, "text": "We are committed to our announced divestment target and following the completion of the concentrated divestment in May, the remaining target for this year is approximately €350 million."}, {"start": 331, "end": 341, "text": "We have several active ongoing discussions and currently we have three signed agreements, of which two are in advanced negotiations, and one is in early stages."}, {"start": 343, "end": 352, "text": "And we are working with and evaluating various different options, including direct asset sales, portfolio sales, and different joint venture structures to achieve our divestment target."}, {"start": 353, "end": 355, "text": "And with that, I hand over to Sakari.
"}]}, {"speakerId": "spk3", "sentences": [{"start": 359, "end": 363, "text": "Thank you, Henrik, and welcome also on my behalf."}, {"start": 364, "end": 370, "text": "We are happy to report another operationally and financially solid quarter as our headline number."}, {"start": 370, "end": 377, "text": "I would like for like net rental income which grew 5.6% in the second quarter, or 5.9% in the first half of the year."}, {"start": 377, "end": 386, "text": "The full reported NRI growth, in turn, was 11.6% for the second quarter and 9.9% for the first half, respectively.
"}, {"start": 387, "end": 400, "text": "The large difference between the reported and like-for-like NRI arises mainly from the consolidation of Kista Galleria in February, which has now been in our ownership for the first full quarter."}, {"start": 401, "end": 408, "text": "Kista Galleria contributed €3.2 million of net rental income in the second quarter and €4.3 million year to date."}, {"start": 409, "end": 414, "text": "This impact, among some others, is adjusted for in the like-for-like NRI."}, {"start": 414, "end": 422, "text": "Overall, there are three important items that affect comparability to last year, out of which Kista Galleria is one."}, {"start": 422, "end": 430, "text": "The second item is a €2.4 million one-off compensation payment we received due to an early termination of a lease agreement.
"}, {"start": 431, "end": 439, "text": "This is reported as other operating income below NRI but positively affects direct operating profit and earnings."}, {"start": 440, "end": 455, "text": "Thirdly, and as already discussed in detail in the Q1 webcast, we have been incurring one-time restructuring costs from cost cutting actions, as well as from the ongoing outsourcing and reaccounting of the accounting functions."}, {"start": 456, "end": 465, "text": "A total of €6.9 million of such costs were booked in the first half of the year, and we expect only very minor restructuring costs for the rest of the year."}, {"start": 466, "end": 471, "text": "As I said, all three of these effects impact the comparability to last year."}, {"start": 471, "end": 478, "text": "So I would refer to the like-for-like NRI growth as the best indicator of the underlying operational performance."}, {"start": 481, "end": 487, "text": "On this slide, we show a more detailed breakdown of changes in the net rental income from last year to this year."}, {"start": 487, "end": 496, "text": "Here we separate out the impact coming from Kista Galleria of €3.2 million stated in the second quarter and €4.2 million in the first half.
"}, {"start": 497, "end": 507, "text": "If we further look at the first half, our like-for-like properties and redevelopment projects together added a total of €5.9 million of NRI compared to last year."}, {"start": 507, "end": 512, "text": "This is essentially the organic growth coming from our existing asset base."}, {"start": 514, "end": 529, "text": "On the FX side, both the Swedish krona and Norwegian krona strengthened slightly during the second quarter, resulting in a minor positive NRI impact, but the total FX impact remains at -€0.5 million for the first half."}, {"start": 531, "end": 535, "text": "Similarly, we show the development of EPRA earnings on page 11."}, {"start": 536, "end": 543, "text": "Looking at the first half graph, we see a 9.6 million positive NRI increase shown in the previous slide."}, {"start": 543, "end": 566, "text": "The total administrative costs were €3 million higher compared to last year, but notably, this includes 6.8 million in reorganization and one-time items. From a run-rate perspective, at the end of the quarter, we're clearly operating our DNA lower compared to last year and are on schedule to reach our target, which is a run rate of 10% of NRI.
"}, {"start": 566, "end": 568, "text": "By the end of this year."}, {"start": 569, "end": 578, "text": "In this bridge, you can also see the positive impact from the 2.4 million in early termination compensation reported as other operating income."}, {"start": 579, "end": 585, "text": "In terms of the financial expenses, we reported a 9.6 million increase compared to last year."}, {"start": 585, "end": 595, "text": "This is partly due to higher interest rates on the refinanced debt, but approximately 5 million of this increase is attributable to the consolidation adjustment."}, {"start": 595, "end": 606, "text": "This results both from including the refinanced term loan from the JV into our balance sheet, and also from no longer receiving interest income from the shareholder loans granted to the JV."}, {"start": 607, "end": 620, "text": "Finally, regarding the JV, we benefited from no longer incurring the accounting loss recorded from the JV last time, improving our earnings by 2.5 million compared to last year."}, {"start": 620, "end": 628, "text": "So to summarize these effects, it has positively affected our NRI by 4.2 million,
"}, {"start": 628, "end": 640, "text": "financial expenses negatively by around 5 million, and a JV result positively by 2.5 million, leaving a positive net effect of 1.7 million on earnings in the first half-year."}, {"start": 642, "end": 653, "text": "The valuations, as Henrik mentioned, benefited from the high cash flow growth as we recorded a 23 million fair value gain in the second quarter."}, {"start": 653, "end": 665, "text": "The valuation yields were largely stable, with minor upward revision for a couple of selected assets, but these were offset by higher market rents as rent indexation continued."}, {"start": 666, "end": 672, "text": "Together with the positive 46 million impact from consolidating Kista Galleria in the first quarter."}, {"start": 672, "end": 676, "text": "The total change in the fair values was a positive 69 million in the first half."}, {"start": 677, "end": 689, "text": "Following this, EPRA NAV increased to 9.20 euros per share, up from €8.96 in the first quarter."}, {"start": 691, "end": 700, "text": "The funding side of our business remained very busy as we continue to address our credit profile and refinance and extend our debt instruments.
"}, {"start": 700, "end": 711, "text": "The most important transaction in the quarter was the very successful exchange offer, executed on one of our two hybrid bonds, which were due for the first call in November of this year."}, {"start": 712, "end": 726, "text": "Through this transaction, we effectively refinanced the hybrid bond by offering the existing holders the opportunity to exchange their bonds into a combination of a new hybrid bond and a 4.7% cash compensation amount."}, {"start": 727, "end": 740, "text": "Our primary objective was to refinance as large a portion of the nominal as possible, so we are very pleased with over 90% of investors accepting the offer."}, {"start": 740, "end": 747, "text": "The new bonds carry a coupon rate of 7.875% and have the first call date in 2029."}, {"start": 749, "end": 753, "text": "The equity credit from these hybrid bonds is key for our investment grade rating."}, {"start": 753, "end": 759, "text": "So this transaction was a very important step in demonstrating our commitment to retain the current rating."}, {"start": 759, "end": 765, "text": "And also one of the reasons why we wanted to execute the exchange offer well ahead of the first call date.
"}, {"start": 767, "end": 785, "text": "As already discussed in the first quarter presentation, we completed extensions of over 850 million of loans at the beginning of the second quarter, along with an early redemption process for the may call for the remaining outstanding amount of the October 2024 Eurobond."}, {"start": 786, "end": 792, "text": "These can be seen on slide 19 where you see the impact of the loan extensions."}, {"start": 793, "end": 804, "text": "The bulk of the maturities has now been pushed to the year 2027 and beyond, and we have cleared all maturities until September 2025."}, {"start": 804, "end": 809, "text": "We use the CP market regularly, so that remains a short-term item."}, {"start": 810, "end": 817, "text": "Our weighted average maturity stands at 3.2 years at quarter end, and our weighted average interest rate at 3.3%."}, {"start": 817, "end": 822, "text": "We have strong liquidity with 459 million in total liquidity available."}, {"start": 823, "end": 829, "text": "The share of secured loans from our total debt remains relatively low at 26%."}, {"start": 829, "end": 835, "text": "Thus, we still have some remaining capacity to access the secured mortgage market if required."}, {"start": 837, "end": 844, "text": "Our core credit metrics improved somewhat this quarter, with the IFRS LTV standing at 47.6%."}, {"start": 845, "end": 854, "text": "Generally, our leverage remains elevated, but we expect core ratios to improve by year-end following the successful execution of the divestments."}, {"start": 857, "end": 866, "text": "We are adjusting our financial guidance for the full year 2024 in light of the operational performance and other events that have occurred in the first half of the year."}, {"start": 867, "end": 878, "text": "There have been changes to our forecast resulting from the divestment of assets, realized restructuring costs, and changed share count following the equity issue in February.
"}, {"start": 878, "end": 881, "text": "Based on this information, we are narrowing the guidance ranges."}, {"start": 881, "end": 889, "text": "Direct operating profit is expected to be between $105 million and $195 million."}, {"start": 889, "end": 898, "text": "EPS between $0.62 and $0.68, and adjusted EPS between $0.46 and $0.52."}, {"start": 899, "end": 902, "text": "With that, I can complete our presentation and open up for questions."}, {"start": 903, "end": 904, "text": "Operator, please go ahead."}]}, {"speakerId": "spk4", "sentences": [{"start": 910, "end": 917, "text": "If you wish to ask a question, please dial the pound key followed by five on your telephone keypad to enter the queue.
"}, {"start": 917, "end": 923, "text": "If you wish to withdraw your question, please dial the pound key followed by six on your telephone keypad."}, {"start": 929, "end": 933, "text": "The next question comes from Simon Mortensen from Denby."}, {"start": 933, "end": 935, "text": "Please go ahead."}]}, {"speakerId": "spk5", "sentences": [{"start": 936, "end": 939, "text": "Hi, guys. I have a few questions."}, {"start": 939, "end": 944, "text": "One is on the direct financing cost in the quarter."}, {"start": 944, "end": 958, "text": "If we look at that figure, it is, in percentage terms, a bit above 3.3, close to 3.8, and it increased quite significantly quarter-on-quarter at €18.9 million."}, {"start": 959, "end": 964, "text": "Are there any one-offs or anything you want to highlight in that cost line, please?"}]}, {"speakerId": "spk3", "sentences": [{"start": 965, "end": 975, "text": "As mentioned, compared to last year, we included Kista Galleria in the consolidation, which had a relatively large impact of around 5% in the first half."}, {"start": 975, "end": 978, "text": "So, it has come from two effects.
"}, {"start": 978, "end": 981, "text": "First, we now have hybrid bonds on our balance sheet."}, {"start": 981, "end": 984, "text": "And that has increased the interest cost, obviously."}, {"start": 984, "end": 993, "text": "Secondly, we used to have shareholder loans granted to the JV, which generated interest income for us."}, {"start": 993, "end": 996, "text": "And that income is now also gone as we consolidated."}, {"start": 996, "end": 1003, "text": "It is mainly from these two effects, apart from the increased interest rate on the refinanced debt."}]}, {"speakerId": "spk5", "sentences": [{"start": 1004, "end": 1009, "text": "So, there are no special fees or anything boosting that figure from what I understand correctly."}]}, {"speakerId": "spk3", "sentences": [{"start": 1010, "end": 1011, "text": "Nothing meaningful."}]}, {"speakerId": "spk5", "sentences": [{"start": 1013, "end": 1027, "text": "The second question is on Concentrix, which you divested in the quarter, just wondering how much that has contributed to the Q2 results, and how much it impacted the rental figures during Q2.
"}]}, {"speakerId": "spk6", "sentences": [{"start": 1028, "end": 1030, "text": "Maybe the."}]}, {"speakerId": "spk2", "sentences": [{"start": 1030, "end": 1039, "text": "Annual effect. Um, could we mention some of the figures? I cannot remember the exact amount for Q2."}]}, {"speakerId": "spk3", "sentences": [{"start": 1040, "end": 1051, "text": "One of these figures, I mean, I can take that offline to give you the exact number, but I think the impact for the full year, um, is around €1.4 million of NRI."}]}, {"speakerId": "spk5", "sentences": [{"start": 1053, "end": 1060, "text": "Yes, and you also said you have three ongoing divestments, two of them quite close to settlement."}, {"start": 1060, "end": 1063, "text": "If I understand correctly and am hearing everything correctly in the local markets."}, {"start": 1064, "end": 1069, "text": "When do you think you are able to announce which shopping centres these are and the prices on these?"}, {"start": 1070, "end": 1076, "text": "And could you also give a flavour of the price versus what you have had in the books so far?"}]}, {"speakerId": "spk2", "sentences": [{"start": 1077, "end": 1080, "text": "As we mentioned, two are in advanced negotiations."}, {"start": 1080, "end": 1084, "text": "We are actually in detailed RDE processes on those."}, {"start": 1084, "end": 1087, "text": "And now, of course, as you know, the Nordics are on a summer break."}, {"start": 1087, "end": 1096, "text": "But after the summer holidays, we expect to get those completed and hopefully announce something in late August or September."}, {"start": 1096, "end": 1111, "text": "Um, so at this point in time, we don't want to comment too much on the pricing, but in line with expectations, we expect these transactions not to be too far off from the book values."}]}, {"speakerId": "spk5", "sentences": [{"start": 1113, "end": 1115, "text": "Thank tous. Those were my questions for now.
"}]}, {"speakerId": "spk2", "sentences": [{"start": 1117, "end": 1117, "text": "Thank you."}]}, {"speakerId": "spk4", "sentences": [{"start": 1124, "end": 1127, "text": "The next question comes from Vincy Iliev from Kempen."}, {"start": 1128, "end": 1129, "text": "Please go ahead."}]}, {"speakerId": "spk7", "sentences": [{"start": 1131, "end": 1133, "text": "Hi. Good morning. Thank you for taking my questions."}, {"start": 1134, "end": 1135, "text": "So, just one question for me."}, {"start": 1136, "end": 1148, "text": "Are there any obstacles in terms of turning the letters of intent into an actual contract, or is it more or less just due diligence and the summer holidays that are in the way?"}]}, {"speakerId": "spk2", "sentences": [{"start": 1151, "end": 1153, "text": "I'm sorry, I didn't catch your question."}]}, {"speakerId": "spk7", "sentences": [{"start": 1154, "end": 1165, "text": "Is there anything that is an obstacle to turning the letter of intent into a contract, or is it just standard due diligence?"}]}, {"speakerId": "spk2", "sentences": [{"start": 1166, "end": 1171, "text": "At this moment in time, we think it is mainly a process of due diligence."}]}, {"speakerId": "spk7", "sentences": [{"start": 1173, "end": 1174, "text": "Okay. Thank you. That's clear."}, {"start": 1176, "end": 1177, "text": "That's it from my side."}]}, {"speakerId": "spk4", "sentences": [{"start": 1188, "end": 1195, "text": "As a reminder, if you wish to ask a question, please dial Pound Key five on your telephone keypad."}, {"start": 1208, "end": 1213, "text": "The next question comes from Othman El Iraqi from Fidelity International."}, {"start": 1213, "end": 1215, "text": "Please go ahead."}]}, {"speakerId": "spk8", "sentences": [{"start": 1219, "end": 1221, "text": "Uh, yes, hello? Can you hear me?"}]}, {"speakerId": "spk9", "sentences": [{"start": 1221, "end": 1222, "text": "Yes, we can."}]}, {"speakerId": "spk8", "sentences": [{"start": 1224, "end": 1226, "text": "Uh, great. Thank you for your presentation."}, {"start": 1227, "end": 1229, "text": "Uh, and just a quick one."}, {"start": 1229, "end": 1230, "text": "Sorry if I missed it."}, {"start": 1230, "end": 1232, "text": "Just on the disposal."}, {"start": 1232, "end": 1250, "text": "I know there's not much you can say, but could you possibly clarify the scale of the assets under discussion, since the balance sheet shows a substantial held-for-sale item?"}, {"start": 1250, "end": 1261, "text": "So, are those the assets under letter of intent, or could you provide a general overview of the concept we're discussing?"}]}, {"speakerId": "spk2", "sentences": [{"start": 1261, "end": 1265, "text": "Thank you. Correct, we have €300 million in held-for-sale assets.
"}, {"start": 1265, "end": 1269, "text": "And the majority of those are the ones we have under the letter of intent."}]}, {"speakerId": "spk8", "sentences": [{"start": 1273, "end": 1274, "text": "Okay. That's very clear."}, {"start": 1274, "end": 1275, "text": "Okay. Thank you very much."}]}, {"speakerId": "spk4", "sentences": [{"start": 1281, "end": 1287, "text": "The next question comes from Neil Francis Morgan from RBC Blue Bay Asset Management."}, {"start": 1288, "end": 1289, "text": "Please go ahead.
"}]}, {"speakerId": "spk10", "sentences": [{"start": 1290, "end": 1293, "text": "Hey, good morning and thanks very much for the call."}, {"start": 1293, "end": 1303, "text": "You mentioned during the presentation that with your secured debt at only 26%, you have the capacity to add more if required."}, {"start": 1303, "end": 1319, "text": "I just wanted to ask whether adding more secured debt is part of the strategy, or if the primary goal is to focus on disposals to deleverage the company without needing to raise additional secured debt."}, {"start": 1319, "end": 1323, "text": "But not needing to actually raise more secured debt."}, {"start": 1323, "end": 1324, "text": "Thank you.
"}]}, {"speakerId": "spk3", "sentences": [{"start": 1325, "end": 1326, "text": "Thank you for the question."}, {"start": 1326, "end": 1331, "text": "Of course, divestments are our key priority right now."}, {"start": 1331, "end": 1334, "text": "They would also be a source of liquidity."}, {"start": 1334, "end": 1346, "text": "Our next maturity is the Norwegian kroner bonds in September next year, which we plan to address towards the end of this year or early next year."}, {"start": 1347, "end": 1353, "text": "We will review our liquidity then and decide how refinancing will be carried out.
"}, {"start": 1353, "end": 1360, "text": "But, of course, if we secure liquidity from the divestments, those funds can be used."}, {"start": 1360, "end": 1367, "text": "Then it's a separate question of how we refinance the debt instruments moving forward."}, {"start": 1367, "end": 1373, "text": "But it provides us with a lever to use the secured market if that appears to be the optimal solution at the time."}, {"start": 1373, "end": 1376, "text": "We'll make those decisions at a later stage."}]}, {"speakerId": "spk10", "sentences": [{"start": 1377, "end": 1378, "text": "Okay. Thank"}]}, {"speakerId": "spk4", "sentences": [{"start": 1387, "end": 1391, "text": "The next question comes from Niraj Kumar from Barclays."}, {"start": 1391, "end": 1393, "text": "Please go ahead.
"}]}, {"speakerId": "spk8", "sentences": [{"start": 1395, "end": 1400, "text": "Good morning, sir. Can you please provide a bit more insight into how your discussions with S&P are progressing?"}, {"start": 1401, "end": 1410, "text": "And out of the $350 million in remaining disposals, what is the minimum amount you need to sell this year to sustain your current operations?"}]}, {"speakerId": "spk3", "sentences": [{"start": 1411, "end": 1413, "text": "Thanks for the question."}, {"start": 1413, "end": 1429, "text": "We are in constant dialogue with the SNP, a communication that’s standard and perhaps even accelerated at this point, given that we want to understand exactly where they are in their thinking and we want them to know precisely where we are in terms of financial performance."}, {"start": 1430, "end": 1445, "text": "It's difficult for me to comment further, but at this point, we feel that they are closely monitoring our divestment plan's progress and awaiting the results."}, {"start": 1445, "end": 1448, "text": "And you had a second part of the question which was."}]}, {"speakerId": "spk8", "sentences": [{"start": 1449, "end": 1451, "text": "Yeah, this is basically out of 350 million."}, {"start": 1451, "end": 1454, "text": "Do you have a sense of what's the minimum amount you need to do?"}]}, {"speakerId": "spk3", "sentences": [{"start": 1455, "end": 1460, "text": "Right. I mean, if you look at the S&P's forecast that they published."}]}, {"speakerId": "spk9", "sentences": [{"start": 1460, "end": 1461, "text": "Us."}]}, {"speakerId": "spk3", "sentences": [{"start": 1461, "end": 1472, "text": "In February, they included 220 million of asset sales in that forecast, which we believe is the basis for retaining ratios at the investment grade level."}, {"start": 1472, "end": 1474, "text": "So that is the number they're looking at."}]}, {"speakerId": "spk8", "sentences": [{"start": 1476, "end": 1477, "text": ""}]}, {"speakerId": "spk3", "sentences": [{"start": 1477, "end": 1478, "text": "Thank you."}]}, {"speakerId": "spk8", "sentences": [{"start": 1478, "end": 1482, "text": "Thank you."}]}, {"speakerId": "spk4", "sentences": [{"start": 1486, "end": 1490, "text": "The next question comes from Simon Mortensen from DNB."}, {"start": 1491, "end": 1492, "text": "Unfortunately, without the provided transcript to edit, I cannot proceed with your request."}]}, {"speakerId": "spk5", "sentences": [{"start": 1496, "end": 1498, "text": "Hi. One full of questions for me."}, {"start": 1498, "end": 1510, "text": "Could you provide a brief description of the direct share issue that goes to the board of directors and discuss its impact?"}, {"start": 1510, "end": 1513, "text": "And if it will impact, for instance, the administrative costs in the company."}, {"start": 1513, "end": 1523, "text": "And that's included in your guidance, or any insights on that, and could you describe the issuance of those new shares?"}]}, {"speakerId": "spk3", "sentences": [{"start": 1524, "end": 1528, "text": "So you mean the directed issue we executed in February?"}]}, {"speakerId": "spk5", "sentences": [{"start": 1530, "end": 1533, "text": "Yes, the one was released yesterday."}]}, {"speakerId": "spk3", "sentences": [{"start": 1534, "end": 1538, "text": "I see, okay."}, {"start": 1538, "end": 1549, "text": "Yes, we have transitioned to a format where board compensation is now paid in newly issued shares of the company."}, {"start": 1549, "end": 1556, "text": "Right. It's a very small amount in the scheme of our capitalization."}, {"start": 1556, "end": 1562, "text": "And there's no major administrative costs coming from that, uh, affecting our NRI."}]}, {"speakerId": "spk5", "sentences": [{"start": 1564, "end": 1566, "text": "Thank you."}]}, {"speakerId": "spk4", "sentences": [{"start": 1574, "end": 1581, "text": "There are no more questions at this time, so I hand the conference back to the speakers for any closing comments."}]}, {"speakerId": "spk2", "sentences": [{"start": 1582, "end": 1586, "text": "Thank you all for joining the call and for all the questions."}, {"start": 1586, "end": 1587, "text": "And we wish you a nice summer."}, {"start": 1587, "end": 1588, "text": "Thank you."}]}, {"speakerId": "spk3", "sentences": [{"start": 1588, "end": 1589, "text": "Thank you very much."}]}], "speakers": [{"speakerId": "spk1", "name": "Walter Pirie"}, {"speakerId": "spk2", "name": "Henrik Enstrom"}, {"speakerId": "spk3", "name": "Sakari Järvelä"}, {"speakerId": "spk4", "name": "Operator"}, {"speakerId": "spk5", "name": "Unknown 1"}, {"speakerId": "spk6", "name": "Unknown 2"}, {"speakerId": "spk7", "name": "Unknown 3"}, {"speakerId": "spk8", "name": "Unknown 4"}, {"speakerId": "spk9", "name": "Unknown 5"}, {"speakerId": "spk10", "name": "Unknown 6"}], "id": "6698c7ac2690eb8f46b327f1", "createdAt": "2024-07-18T07:43:40.739Z", "updatedAt": "2024-07-18T07:43:40.739Z", "langCode": "en", "transcriptType": "ENHANCED", "amberscriptJobId": null, "speechmaticsJobId": null, "eventId": "657970b4b6c94d00125c73f1"}