This report does not constitute a rating action. We expect Hemsö’s development pipeline to continue to drive portfolio growth. Over the coming 24 months, S&P Global Ratings assumes around Swedish krona (SEK) 2.7 billion to SEK 3.0 billion of annual capital expenditure (capex), including maintenance capex. Year-to-date, Hemso spent around SEK2.2 billion of capex and rental growth of about SEK138 million related to completed development projects, net acquisitions and indexations during the period. Total portfolio value grew to SEK92.4 billion from SEK87.2 billion at year-end 2025. That said, we believe like-for-like portfolio and revenue growth will remain more muted over the next 12-24 months, given our assumptions of stable occupancy rates and low single-digit inflation benefits being offset by minor
