The Karlstad Portfolio

Below is presented a long-term stable and strategically located residential portfolio in Karlstad, a

municipality that for many years has shown clear and positive development in both

population growth and economic activity. Karlstad continues to strengthen its position as one

of central Sweden's most attractive regional centres, where a growing labour market and a

varied business community drive continuously high demand for housing. The region serves as

Värmland's natural hub for trade, logistics, education and community development, which

creates a secure foundation for investments in the residential sector. The portfolio comprises four fully

rentable residential properties located in attractive and established areas.

The stock is complemented by parking spaces, garages and carports, which strengthens cash flow

and broadens the revenue base. The combined net operating income amounts to approximately SEK 2.47 million plus a further probable rent increase of approx. 3.5% for 2026.

The valuation is based on a yield of 4.60 percent, corresponding to a market value of approximately

SEK 53.8 million. The portfolio combines stable and predictable income with a low

vacancy rate and clear potential for both value-adding development and improved rent levels.

This makes the portfolio attractive to investors seeking security, diversification and long-term

growth in a region with documented positive development.

PORTFOLIO OVERVIEW

The portfolio comprises four properties in Karlstad:

Pollux 7 – Polluxgatan 5

Residential area: 504 sqm

Annual residential rent: SEK 889,368

Net operating income: SEK 705,319 (including parking income)

Value: SEK 15,333,022

Borgmästaren 1 – Norra Allén 14

Residential area: 600 sqm

Annual residential rent: SEK 1,005,504

Net operating income: SEK 772,377 (including parking income)

Value: SEK 16,790,804

Fjärdingsmannen 7 – Skolvägen 7

Residential area: 363 sqm

Annual rent: SEK 652,320

Net operating income: SEK 473,841 (including parking income)

Value: SEK 10,300,891

Tjuren 7 – Torparegatan 5

Residential area: 457 sqm

Annual rent: SEK 672,936

Net operating income: SEK 522,498 (including parking income)

Value: SEK 11,358,652

Total portfolio: 1,924 sqm of residential space

Annual residential rent: SEK 3.22 million

Net operating income: SEK 2.47 million

Value: SEK 53.8 million

Supplementary income from parking spaces, garages and carports adds approximately SEK 219,000

annually.

APARTMENT DISTRIBUTION – MURGRÖNAN RESIDENTIAL

Below is a summary of the apartment stock per property as well as the distribution of

number of apartments and apartment types (ROK).

Karlstad Pollux 7

8 apartments in total. Distribution: 1 rok (1), 2 rok (4), 3 rok (2), 4 rok (1).

Apartment sizes from 34 to 91 sqm.

Karlstad Borgmästaren 1

12 apartments in total. Distribution: 1 rok (8), 3 rok (4). Apartment sizes from 25 to 84

sqm. High proportion of smaller apartments.

Karlstad Fjärdingsmannen 7

6 apartments in total. Distribution: 1 rok (2), 2 rok (1), 3 rok (2), 4 rok (1). Sizes

from 22 to 95 sqm.

Karlstad Tjuren 7

6 apartments in total. Distribution: 1 rok (1), 2 rok (3), 3 rok (1), 4 rok (1). Sizes

from 40 to 125 sqm.

TOTAL STOCK

Total number of apartments: 32.

Distribution per ROK:

1 rok: 12

2 rok: 8

3 rok: 6

4 rok: 4

A majority of the stock consists of 1–2 rok, while 3–4 rok account for approximately one third.

The properties show clear variation in size and apartment types, where Tjuren 7 houses the

largest units and Borgmästaren 1 dominates with small apartments.

RENT LEVELS AND INCOME

Total rental income including parking income amounts to SEK 3,439,248 per year. This

corresponds to approximately SEK 1,788 per square metre of residential area.

The rent levels are well balanced in relation to the market and the portfolio shows a very

low vacancy rate.

OPERATION AND MAINTENANCE

Operating and maintenance costs amount to SEK 965,213 per year, corresponding to approximately SEK 502

per square metre. The portfolio's net operating income amounts to SEK 2,474,035, which means

approximately SEK 1,286 per square metre of residential space.

TECHNICAL STATUS

The properties have generally good basic standard with several areas where targeted

investments can contribute to value appreciation and increased energy and operational efficiency.

Pollux 7

Roof of concrete tiles. Rendered facade. Mixed window standards. Ventilation through

stack effect and mechanical exhaust. One apartment is vacant and can be renovated to achieve

a higher rent level.

Borgmästaren 1

New roof from 2017. Rendered facade. Older windows. Otherwise generally good technical

standard.

Fjärdingsmannen 7

Roof of concrete tiles. Partially older windows. Rendered facade.

Tjuren 7

Older sheet-metal roof. Rendered facade. Drainage carried out in 2014. Detached garage. Rendered facade.

INVESTMENT CASE

STRENGTHS

Stable and lettable portfolio in an expanding market area

Very low vacancy rate

District heating connection in all properties

Attractive yield of 4.60 percent

Good risk diversification across four properties

Value-adding potential

Renovation of apartments for rent adjustment

Window replacement and improved maintenance for energy savings

Possible optimisation of prices for parking spaces and garages

Energy optimisation and modernisation of technical installations

INVESTOR SUMMARY

The portfolio is valued at SEK 53,783,370 based on a yield of 4.60 percent.

Price per sqm SEK 27,953.93.

Net operating income amounts to SEK 2,474,035.

Contact Lejon for more information about the process!