Yes, 40 years. I started in '86 and in '91 I became CEO. And the first year the share price dropped from 220 to 7 kronor over two years, that's correct. Then it wasn't so fun to stand here and give a speech. But we managed it and moved on.
There is turmoil in the world now, just as there was back then. It might not have been as turbulent in the world in the same way, but it was turbulent in the financial world. This is much worse when there is war close by. But I still think that Wallenstam stands stable in this situation with such a turbulent and troubled outside world.
And I can actually be proud of that result and the investments and what we have done during the past year 2025. When we concluded 2025, we had 210 properties distributed over 1.4 million square meters. Two-thirds of the area is in Gothenburg. One-third of the area is in Stockholm. So we are evenly spread, you could say.
We have an economic occupancy rate, because there is a lot of focus on that now from stock investors and analysts and others. We have 97%, and we have been there for many, many years. We have practically 100%. There is a certain turnover vacancy naturally if it is a dead space or something else, it might stand for a month while we do repairs. But practically 100% occupancy of our apartments.
And as Lars Åke talks a little bit about in his speech here, we actually choose very, very attractive locations. And that also applies when we build, that we see... I got a question here before. We look at what the willingness to pay is, you could say, among our customers, which guides what we produce, our apartments, so that we feel confident about renting them out.
And commercially, I must say, it works very well. It is not a hot market, but it is a troubled market, and that also means that decision times take longer when you are going to move offices or make investments. You have to respect that it takes a bit longer in these troubled times.
What I am extra proud of is that when we rent out our commercial contracts, we have a goal ourselves that when the contracts expire, at least nine out of ten tenants should stay for at least one more contract period. And we have 91% of our customers who stay with us when they have the chance to terminate or move away from us. And I am very proud of that because we get very good reviews from the customers, and in a way, the customers are what the whole company lives off.
Lars Åke talked about our goal, as mentioned, it is 80 kronor by 2030. And right now, at the turn of the year, we were at 62.10, which is an increase over the previous year of 4.60. And it feels like we will slowly but surely work our way towards the goal. That is our absolute target.
How do I talk about the places we are in? I talk about two-thirds in Gothenburg and one-third in Stockholm. And then you could say that this cloverleaf has now become a four-leaf clover where we have also started our investment in commercial inner-city properties in Stockholm. We have about the same amount of housing in Gothenburg and Stockholm, and then a third of the portfolio is commercial, a little over a third is commercial in Gothenburg.
And in a way, we own so many buildings in the central city that we feel the market for new acquisitions is considerably smaller. And then entering Stockholm, since we can do commercial leasing, it felt natural to also go in and become an actor in the Stockholm region on the commercial side. And we start that work in earnest with the fact that we had the privilege of acquiring Sergelskrapan right by Sergels Torg, which I will come back to. And I think that is a fantastic start to that investment.
Here we have it. We took over at the very beginning of the year. And I must say, Mattias, you have to say if I am wrong, but it is almost record time for the building permit. For such an iconic building, the cities are very, very careful, and there is a lot of work, many committees, many boards, many opinions before such a permit is ready. But we got it done in record time so we could start the production of the facade that we are going to replace completely.
That meant we had to cover the entire facade first in a scaffolding, in a way a dress, and start the dismantling from the top, taking down facade element by facade element, which we are doing now and will finish this summer. After that, the scaffolding comes off because we will start mounting the new facade from the bottom, stacking it on top of each other. And then it is in the way, so it will grow up there.
And while we are doing this, we are finding concepts and so on for the commercial premises here in this property. And I would claim that this is probably one of the most famous commercial buildings in all of Sweden. Not just Stockholm. It is a landmark standing there in the front at Sergels Torg. So I am very glad and very proud that we got to acquire it, but also very glad that we get to develop it, because I think we as a company are very good at that.
When we talk about development, we have also had the privilege of being involved in a central property in Gothenburg down by Brunnsparken. We acquired this property from Handelsbanken. Handelsbanken is still there, has stood through the renovation that has been going on. We hope we have handled it as well as possible, but you have at least said so. We have remodeled the entrance so that it should look like a real vault, and that is what this house is called, the Vault.
And now we have prepared the bank's premises, and then there are other premises that there are a number of interested parties for. So this will, I think, be a very, very successful project in Gothenburg's inner city.
We have, as mentioned, done a lot during the year. We have bought and sold a business volume of 5.4 billion, where naturally the largest was the acquisition of Sergelskrapan. That was 2.8 billion for a single building. That is an enormous amount of money. The stamp duty was 124 million. You can imagine, you get anxiety when you sign that bill. So it was an enormous volume for such a property. But we are very happy to take on that challenge.
But we also sold four commercial properties in Gothenburg, three in Gårda and one in Hovås. And then we also sold Nacka Grace, the newly produced residential property in Nacka Centrum, which I will come back to a bit more.
We work, despite the fact that you probably see the EU institutions and others degrading sustainability goals in society. But we work intensively, perhaps not with sustainability reporting as primary goals, but we want to make a difference. We want to do work that creates sustainability. Then it should of course be reported. And we have three goals set to the Paris Agreement that align with it, and that is that we will reduce both direct and indirect carbon dioxide emissions in the different scopes.
We will reduce 50% in the first two by 2030 and 55% in the last one. And you can see for yourselves that the journey has started and we are well on our way with the results we are already achieving. Construction is the tough part, and you should know that the best thing we can do to reach our goal is to not build at all, because then it is zero. But we do not really want to end up there; we want to be a societal player that also produces apartments when housing is needed for immigrants.
Because we saw that even if the population decrease is not so large or the increase is not so large, our two major cities are increasing their inhabitants, and then you need new housing for the labor market and so on. We are also fighting with sustainability goals when it comes to construction.
This is an example of what we do. We have an older residential area with 900 apartments in Råcksta, just outside Stockholm, or in Stockholm but not in the CBD, but a popular residential area with 900 apartments. Here we are going to move these properties; they are in energy class D and E. And our goal is to get energy class C for this area, and then through a multitude of measures that we are doing here, and investing a lot of money.
A big thing we are doing is that we are drilling, for example, 130 holes down into the ground for geothermal heat, and that is 400 meters down into the rock. We will install 1,463 solar panels that generate 666 kW. So it is a huge investment for us to do this. But we believe in it, and we do it rather than the EU, which perhaps has removed reporting rules. But we turn it into action.
I will move over a little bit to financing. We are a company that has made a choice. We are not listed, but we like to have our banks as our partners, cooperation partners. So we are mainly bank-financed. We are bank-financed to 90% of our financing.
Then we are on the capital market in the form of some bonds, 7%, and commercial paper, which are short, you could say, short loans on the capital market at 3%. In the B-loan that we have here, we have amortized that away. So now we do not have the European Investment Bank left.
In troubled times, you have to try to aim and work on what you can influence yourself and not sit down and be paralyzed by fear. But one thing we think is important is to secure our interest rates for a long time so we do not need to worry about how the interest rate develops.
And you could say then, a little bit like the advice you get privately, that you take a third long, a third medium, and a third short. And we can say that we have two-thirds of our interest rate portfolio secured through interest rate derivatives. And at the turn of the year, it was the light gray bars. But I still want to add the striped bars that we have done now during the first quarter.
So we have an average interest rate of 2.39% at the turn of the year, which I think not many can beat us on. At the same time, we have a very long interest rate lock-in. You can have a lower interest rate, but usually it is a shorter interest rate lock-in.
We stand strong. We have 44% equity ratio, 47% loan-to-value ratio. The net asset value is 62. These are practically unchanged values since the previous turn of the year, and then you should not forget that we have bought a property for 2.8 billion that is on the balance sheet, which moreover you should know is empty because we have evacuated it, so there are no tenants left. So it is very strong to be able to deliver these figures under those premises.
However, it is unfortunately not so fun on the share price, where we were spoiled with being a little above our net asset value for many years. And so to speak, then came a time with the pandemic and turmoil where we slowly but surely slid under, and not just we but the whole sector got a small confidence gap towards the market. And then we are below our net asset value.
We cannot do much more than fight on and do the measures that we can influence, and we do that in a very strong way. So when we come back again and the sector becomes popular, we will be well prepared when it starts. And one means can be exactly what the chairman mentioned, that we have bought back shares. Because if there is a discount in the share, we should naturally buy and distribute that overvalue to you and other shareholders. So we take advantage of the fact that it is undervalued on the stock exchange today.
We might also make decisions later to stamp that out, and you can just see that as an effect that the operating result per share has developed positively, even if perhaps not in Q1 in kronor, but per share it is positive.
We continue to invest, because many times people say when you buy back that it is a passive investment, but we do not put the investment aside. We bought the skyscraper, our most expensive property. We invested in construction, 2.2 billion during the year. So we are really keeping the steam up when it comes to investments.
We completed 686 apartments during the past year. I will briefly report which ones they were.
Älta is a urban development project. We like to work in areas so that when we, so to speak, advertise or put an area on the map, we like to work with a whole area instead of a single building. Because then you can work with the square, you can work with different things to make it a popular residential area. And Älta is one such where we develop and densify and also take care of the old buildings.
Here we have completed 1,091 apartments. If I move on, Kallebäck is another such area where we have just completed block six, as we call it, in Kallebäck. 299 apartments. It is a fantastic area, Kallebäck, which we have basically started from just a gravel plain when we removed the dairy factory, and then a fantastic area has grown up.
It is both preschool, school, workplaces, restaurants, a grocery store will come in block one, which is the last one. So you do not need to leave Kallebäck when this is ready, but you can be there the whole time. It will also hopefully be a nursing home.
Here is a very nice project that is right by Reviken strand, Larsboda. We joke because our chairman is named Larse. So it is Larsboda here. 172 apartments. Wonderful and beautiful in nature. And there I will also come back; very close by we have bought a large plot of land.
I was going to come back to Nacka Grace here. We took on the challenge of building a modern new house in a design form that is 100 years old. We had not done that before. But we felt that we could, and did this in a brilliant way, and it became incredibly popular to live here.
The first week when we put out our apartments, we had 30,000 applicants for 169 apartments. So it was a massive application rush of people who wanted to live here. And you should know that the rents are quite tough in such a property. Since it was built after the pandemic, material costs and everything went up. So it became a higher moving-in rent for those who move in there, perhaps 15-20% compared to what was built just five years ago.
But still, there was huge interest. And when we were done with it, there was just as big interest from investors to buy it. Many came and courted us. Can you imagine selling it? And we had not thought about that. But then finally, when we had such an influx, I remember, we tested the market and we actually got a record price for it too when we sold it.
So it feels like... and what was very fun with this is that quality pays off. If you build houses that are both aesthetically beautiful but also very exclusive on the inside, the interest was enormous to rent and the interest was enormous to buy. So it is actually fun that quality pays off. This building has also received an award as Sweden's finest new production.
And then you could say, how could you sell it? But it feels very nice because it is still we who have built and created it. Now we are moving on to the next production. So it has been very nice to have been involved in doing that.
What are we going to do this year? Or rather, during 2025 we started 394 new apartments. I thought I would go through them briefly.
I got the question about Stensturegatan, and Stensturegatan is a very special house because it was my father who built it when I was born, practically. And you think they are very nice for a long time, but they also needed to be renovated because they are somewhat aged in the existing apartments. But then we also got to try and work with building additional floors on the roof, and that is invaluable in Gothenburg's inner city where there is such a shortage of apartments, to be able to deliver new apartments in Gothenburg's inner city.
And now we have built the first house here towards Skandinavien. Now we are on the second house, and here there will be 39 new apartments and 57 apartments that we are completely renovating. So it will be a fantastic house when it is finished. And then we take the smallest house, house three, after that.
I mentioned Kallebäck, and here we started another 177 apartments. In total, 2,000 apartments are to be built in this area. Then we have the adjacent area right next to it, and there might be another 1,500 apartments.
Älta, I mentioned. Here we are up and running, building 178 apartments. So there is great activity also in investments. And not to be forgotten now, we are also investing a lot in the renovation of Sergelskrapan.
The operating result went up during the year by 11%. And we had many move-ins, a lot happening, and we had pressed down the interest rate, so the final result was 11% better. And we maintain the efficiency in our management, both rents and cost efficiency in procurement and so on. So I feel very proud and happy that we can deliver this in such a troubled year as 2025 was. But I feel very happy about that.
The property values are 70 billion, and not that much is happening on the valuation front. It is a bit uncertain now, but we are a large company and I feel we have a close dialogue, because that is the most important. No, there are many things that are most important, but that we have a close relationship with our customers and that they appreciate what we do and want to be our customers. That is absolutely central to our business.
I also thought I would tell you a little bit about upcoming and ongoing projects that we can see at Wallenstam. We have a huge project called Årstaberg that is just a stone's throw outside Söder, where the commuter train and the subway go practically not through the house, but it is about 10 meters away, so you cannot live closer to a communication hub. And then it takes about two minutes to the center from here, so it is incredibly well-connected.
And there, you should know that the rents here are higher than in Nacka Grace. They are actually the highest rents that have been negotiated in Sweden. And what happens with our interest? We see that we opened up to rent out 95 apartments here now before the summer and just over 100 apartments after the summer. We put this out because when our show apartment was ready, we said now you can come and look. 3,000 people signed up, and we cannot receive that many, so we had to redo it so that people had to book a time, so 1,000 got to come and look.
So there was a queue that took an hour and a half to go in and look at -1 degree. It took a week and those 95 apartments were gone. And Mattias, the other 100 after the summer are practically gone too. So there is an enormous demand for quality. So it feels fantastic and fun, and you also become proud of that.
Here is an overview picture of the whole thing. What I have been talking about, the whole area, and we own practically these dots where we have completed some and future productions some. Block three, as you see, we did a deal with JM where we bought a nice area near Marievik and swapped for these upcoming building rights, and then they got to buy here because they wanted to start building in 2027. So it also feels like we can move positions in different contexts.
Älta Torg. Here we are also building a municipal cultural center that the municipality rents, plus 50 apartments. So we are making the center in Älta very attractive. It will be an outdoor center, meaning you walk outdoors instead of the indoor center, which is an old-fashioned center that has actually had the best time. And so the investment is that it will be completely new.
That was the area I came into. No, that was the picture before.
This property is very nice because it is Stockholm City that has given us a land allocation at Södra Station where we are going to build 65 apartments. We hope to start within a year or so. And then there will be a large, large bicycle garage in the lower floors that will serve those who take the subway and then with a bicycle, so it will be a parking lot for bicycles, quite simply. And it is right in the middle of Södermalm.
Here I come to the area. It is a large area that we have had the chance to buy out in Sjöstad opposite Ropsten, where we are going to build up to 2,000 apartments. And then there are two circles here. It is the red one where we have a city plan that has gained legal force, which we are now going to start shaping 400 apartments. And then in the yellow ring, we will drive the city plan ourselves, and perhaps we will reach 2,000 apartments together in these areas. You never know. Then it will be on par with Kallebäck.
And to go back to Kallebäck, it feels like an area that we continue to develop. And you can see the colored pictures; those are the ones we have completed or started. Now we have blocks 0, 2, and 3 left to start. Zero is the nursing home potentially, and then two and three are residential blocks. Now we are next up to start building block two, and I hope we will also start that during the year.
It looks like this, 165 apartments.
Other places where we are going to build in Gothenburg, it is out in Mölndal, Mölndal Centrum right next to Scandic. We are building full speed, 119 apartments at Olofbergsgatan with Scandic as the nearest neighbor, as you see in this picture, so we are framing the Scandic hotel there. And then we hope that we will start eventually. Lot A here, as we call it, is 195 apartments in the next step.
And then we have finally started construction at Kalanderplatsen. And Rebecca, how long have we been working on this?
17 years we have said next year we will start it. You understand that you must have patience. But Rebecca has heard about it her whole life. But now we are starting it. June 1st we are starting this now. So it is very fun. And all this with construction, we have made a development or change in our organization.
This is because we have noticed this with quality and a little extra craftsmanship or extra thoughts need to be polished in every single project and make it a bit unique. And then we have created a business area, Investments, which Erik, you will set up, Erik Klang is responsible for, who handles buying and selling of properties plus new production of, yes, new investments. Nice.
And it also gives our regions, Marina and Mattias here, the chance to further increase focus on the existing properties. Because we also see that there have been changes in legislation that can make it possible for us to further take advantage of the value in our existing properties. With different measures, we can get more apartments, more premises out of existing properties. So the regions' work is focused even more on that.
So that is what we have prepared for, and that is what we have done. So the last thing I want to say is just a thousand thanks to my fantastic staff. Besides being able to sing and play and receive you, they do a fantastic job at their work. Everyone is super engaged and wants nothing other than to deliver results and societal benefit in different ways. Also naturally in a profitable way so that shareholders and other stakeholders are satisfied. So a big thank you to you all, shareholders, board, and staff for the year that has passed. Then we will see how the coming year looks. Thank you very much.
[applause]
