Issuu

Swiss Life REF Nordic 2020

Report | 4th Quarter 2024

Information

21st of October 2019

Seven years from the end of the Investment Period, extendable by consent of Investors representing at least 2/3 of total Commitments

”In Q4 2024 the fund distributed a dividend of NOK 0.60 per share”

Norrköping

Helsingborg

Växjö

Arlanda

Næstved Stavanger Helsinki

Glostrup

Dear Shareholder!

The return for Swiss Life REF Nordic 2020, in Q4 2024, was 1.8%.

The properties were valued by third parties in Q4 and the decline in property value we have seen over a long period tends to have stopped. The portfolio maintains the value from Q2 with only minor adjustments. Total return since inception is 25.8% (based on start-up price NOK 25,- per share).

As a result of reduced property values during 2024, the fund’s portfolio companies in Helsinki (Finoffice) Växjö (Postnord is the tenant) and Bergen (Sandsli) are still in breach of the loan terms. The portfolio companies cannot pay dividends to the fund until the LTV is within the respective covenant, but they have good liquidity and the manager has a good dialogue with the lenders.

The fund’s real estate portfolio is solid and consists mainly of modern buildings in good locations leased to solid tenants on long-term leases. We are still experiencing limited optimism in the property market and also see that there are more deals being completed, which may indicate a recovery in the market. Despite this, there is still great uncertainty in the real estate markets in the Nordics and we expect continued instability through 2025. The manager believes that the fund’s portfolio will stand up well compared with the rest of the real estate market also through more uncertain times. The operation of the properties in the portfolio is according to plan and budget. All tenants pay rent according to budget. The average lease period in the portfolio is approximately 9.1 years.

The fund’s portfolio company has an average loan-to-value ratio of approximately 60% as of the 4th quarter of 2024. Approximately 78% of the total loan balance is interest-hedged at a favourable interest rate compared to the current interest rate. Approximately 50% of the total loan balance matures in 2026.

The fund paid dividends in Q4 at the rate of 0.65 per share and wants to continue paying dividends to shareholders going forward. At times, it may be necessary to retain some of the fund’s surplus liquidity so that future payments may vary and be at a lower level than earlier.

Best regards,

André Møller - Senior Portfolio Manager

Return

The quarterly return was 1.8%.

The return in the quarter amounted to 1.8% and the NAV at the end of the quarter was NOK 1,950.2 milion.

Net lease income after the cost of interest payments added 0.5 NOK (1.9%).

Changes in the market value of the interest swaps impacted with -0.0 NOK (-0.1%). FX-rates impacted positively with 0.0 (0.2%).

Costs and other items in the quarter accounted for a total of -0.0 NOK (-0.1%).

Swiss Life REF

2020

Fund Portfolio*

The fund portfolio consists of 12 portfolio companies with ownership in 14 properties leased to 51 tenants.

Per the end of the quarter the properties are valued at NOK 6,746 million, where Swiss Life REF Nordic 2020’s share is NOK 4,136 million. Total lettable area is 289,856 sqm where the fund’s share is 185,721 sqm. The annual net rent is NOK 400 million of which the fund share is NOK 248 million.

*All figures presented on this page, except for Invested Capital, exclude the development project at Arlandastad.

**Market Yield is defined as being rent less operational costs divided by the latest market value of the property.

Property Values

København Kontorbygg II AS Vestbylog AS Østre Aker lagerbygg AS Norrlog III AS Helsinglog AB Kongtech AS Øst Bygg og Handel AS Sandslimarka Kontorbygg AS Vaxlog Fastighets AB Næstved Retail

Fund Portfolio

* Rent is converted to NOK using the quarter end FX-rates ** Swiss Life REF Nordic 2020 AS’ percentage ownership in the portfolio company *** Market Yield is defined as being rent less operating costs divided on the latest market value of the property

Lease term (years)*

Rusta AB

Tryg Forsikring A/S

Frigoscandia AB

PostNord Sverige AB

Skeidarliving Group AS

Elgiganten A/S

Kongsberg Næringsparkutvikling AS

Optimera AS

Danske Bank A/S

Nets A/S

Danx AS

Jula Norge AS

First Mover Group AS

Sport24 A/S

T. Hansen Gruppen A/S

Power A/S

Aker Solutions AS

Ownership distribution by segment

Ownership distribution by country

Ownership distribution by investment Retail, 22 %

Development, 7 %

Industrial, 6 % Logistics, 36 %

Office, 28 % Finland, 11 % Sweden, 41 %

Denmark, 26 %

Finoffice I, 11 %

Norway, 22%

F60 Development, 7 %

Stavanger City Office, 4 %

Vaxlog, 6 %

Næstved Retail Park, 6 %

Norrlog III, 22 %

København Kontorbygg, 8 %

Østre Aker Lagerbygg, 2 %

Kongtech, 6 %

Sandslimarka Kontorbygg, 5 %

Helsinglog, 6 %

Øst Bygg og Handel, 3 %

Glostrup Retail Park, 12 %

F60 Development AS (Arlandastad)

Status development

Location Airport City Stockholm

Inception Q2 2022

Lettable Area

sqm 100.0% of which leased 1,450 sqm 1.2% of which constructed

sqm 98.8%

Arlandastad is a development project comprising building rights of approx. 124,400 sqm to be exercised developing a modern business park. The intention is to have lease contracts secured before initiating construction of buildings. Potential segments include light industrials, warehouse, office, and hotel. Completed properties will successively be sold in an estimated timeframe of 5-10 years.

F60 Development AS is owned 50% by Swiss Life REF Nordic 2020 AS and 50% by Swiss Life REF ESG Nordic 2022 AS. F60 Development AS has in turn co-invested with Cavandium AB and Arlandastad Group AB in Arlandastad F60 AB, which owns the plot. Swiss Life REF Nordic 2020’s indirect share in Arlandastad F60 AB is 17.5%.

F60 has recently signed a 10-year lease agreement with Tufvassons AB. Tufvassons supplies electrical technology solutions to industries such as manufacturing, energy, and healthcare. The agreement includes the construction of a new building of approximately 1,450 sqm in the business park, tailored for warehouse, production, and office spaces. The estimated move-in date is autumn 2025.

Tenant Relations

All lettable areas, except some areas at Stavanger City Office, are fully let. Weighted average unexpired lease term is 9.1 years.

KØBENHAVN KONTORBYGG II AS

Large office facility in Ballerup, Copenhagen Headquarters for Tryg Forsikring A/S and Nets A/S

The property was completed in 1989 and was almost completely refurbished in the period of 2009-2011. Total lettable area consist of 67,787 sqm and 1,508 parking spaces. The plot size is 162,596 sqm including tennis courts, which represents potential for future expansion of the office building.

The lease agreement with Tryg Forsikring A/S is fixed for 20 years since acquisition in January 2017 with a 10-year extension option at maturity. 24-month rolling break options for the owner after the 20 years. The rent escalates annually with the y/y change in CPI (min 2% max 4%). The landlord is responsible for external maintenance and its own administration costs.

Nets A/S rents approx. 21,800 sqm from 01.10.2019 for 11 years. Nets has the option to vacate 5,500 sqm after 7 years with a compensation to the landlord. The rent escalates annually with fixed 2%.

ØSTRE AKER LAGERBYGG AS

Logistics- and office facility in Oslo FMG AS, Danx AS & Meca Norge AS

The property is a logistics and office facility that was completed in 2019, with its older section dating back to the 1960s. It has 10,998 square meters of lettable space and is situated on a 12,906 square meter leasehold plot

The property is leased to FMG, Danx & Meca Norge. The lease agreements run until December 31, 2028, June 30, 2026, and March 31, 2027, respectively. The rents will be adjusted annually for CPI by 100% with a positive change. The owner is responsible for external maintenance, replacement of technical installations, building insurance, lease fees, and its own administration.

KONGTECH AS

Production - and storage facility in Kongsberg Kongsberg Næringsparkutvikling AS

The property is leased to Kongsberg Næringsparkutvikling AS. The lease period is fully guaranteed for by Kongsberg Gruppen ASA. The property was completed in 2006 and updated with a mezzanine in 2013. Lettable areas are 10,480 sq.m and the plot is 7,036 sq.m.

The lease agreement runs until August 2031. The tenant has the option to prolong with 10+10 years with a 2 year notification period. When exercising the option, the tenant has the right to decide whether to keep the CPI adjusted rent or request a new market rent. The rent escalates annually with 100% of the y/y change in CPI. The landlord is responsible for its own administration costs.

HELSINGLOG AB

Logistics facility in Helsingborg Frigoscandia AB

The property was completed in 2021 and consists of a 10,822 sqm logistics facility.

The lease agreement runs until june 2034. The tenant has the option to prolong with 5 years, but must notify within 24 months of lease end. The rent escalates annually 100% with the y/y change in CPI. The landlord is responsible for external maintenance, renewal of technical fittings, insurance and its own administration costs.

ØST BYGG & HANDEL AS

Retail property in Lillestrøm Optimera AS

The property was built in 2010 and consists of 4.910 sqm. The lease agreement with Optimera AS runs until July 2031. The tenant has the option to prolong with 5 years at equal terms. Optimera Gruppen AS stands as guarantor.

The landlord is responsible for external maintenance, renewal of technical fittings, insurance and its own administration costs. The rent escalates annually with 100% of the y/y change in CPI.

ØST BYGG & HANDEL AS

Retail property in Hamar

Optimera AS

The property was built in 2000/2003/2008 and consists of 5.246 sqm. The lease agreement with Optimera AS runs until June 2030. The tenant has the option to prolong with 5 years, though the rent shall be adjusted to the market rent. Guarantee from a financial institution equal to 6 months rent.

The landlord is responsible for maintaining the standard at lease inception, maintenance of common areas, property tax, insurance and its own administration costs. The rent escalates annually with 100% of the y/y change in CPI.

ØST BYGG & HANDEL AS

Retail property in Fredrikstad

Skeidar Fredrikstad AS and Jula Norge AS

The property was built in 2012 and consists of 10.431 sqm. The lease agreement with Skeidar Fredrikstad AS runs until September 2033. The tenant has the option to prolong with 5 years at equal terms. Skeidarliving Group AS as guarantor.

The lease agreement with Jula AS runs until June 2029. The tenant has the option to prolong with 5 years, though the rent shall be adjusted to the market rent. Guarantee from Jula AB equal to 6 months rent.

The landlord is responsible for external maintenance, renewal of technical fittings, property tax, insurance and its own administration costs. The rent escalates annually with 100% of the y/y change in CPI.

SANDSLIMARKA KONTORBYGG AS

Office facility in Bergen

Aker Solutions AS

The property was built in 1990 (renovated in 2018-2019) and consists of 13.100 sqm. The lease agreement with Aker Solutions AS runs until February 2027. The tenant has options to vacate the areas before 2027. The seller guarantees for any loss of rental income and common cost related to the options.

The landlord is responsible for external maintenance, renewal of technical fittings, insurance and its own administration costs. The rent escalates annually with 100% of the y/y change in CPI.

NORRLOG III AS

Logistics facility in Norrköping Rusta AB

The property was completed in 2021 and consists of a 68,500 sqm logistics facility. The lease agreement runs until November 2041. The tenant has the option to prolong with 5 years, but must notify within 36 months of lease end. The rent escalates annually 100% with the y/y change in CPI. The landlord is responsible for external maintenance, renewal of technical fittings, insurance and its own administration costs.

VAXLOG FASTIGHETS AB

Logistics facility in Växjö

PostNord Sverige AB

The property is leased to PostNord Sverige AB. The property was completed in 2018. Lettable areas are 16,877 sq.m and the plot is 94,517 sq.m.

The lease agreement runs until October 2033. The lease is autmatically renewed for 3 years unless the tenant terminates the agreement within 24 months of its expiration. The rent escalates annually with 70% of the y/y change in CPI. The landlord is responsible for outdoor and structural maintenance and replacements, snow removal on the roof as well as insurance and its own administration costs.

NÆSTVED RETAIL PARK AS

Retail property in Næstved

Elgiganten A/S, Jysk A/S, Harald Nyborg A/S et al.

The property was built in 2022 and consists of 18,534 sqm. The property is leased to 12 tenants. The weighted unexpired length of the lease agreements is December 2032. All lease agreements escalate annually by the change in the Danish NPI. However, all leases have mininmum and maximum levels for escalation with the majority of rents being adjusted by minimum 1% and maximum 3%.

STAVANGER CITY OFFICE AS

Office facility in Stavanger

DNO ASA, Altera Infrastrcuture AS, Rogaland municipality, et al.

The facility consists of three properties totalling 18,473 sqm as well as 254 parking spots. The main building, responsible for approximately 90% of total rent, is an office property constructed in 1999 which has been extensively refurbished in the last five years.

The lease agreement with DNO ASA runs until 31.12.2026, while weighted unexpired lease term for all tenants is until 19.06.2026. The rent escalates annually with 100% of the y/y change in CPI.

FINOFFICE I AS

Office facility in Helsinki

Danske Bank A/S

The property was built in 2008 and consists of 19,139 sqm as well as 151 parking spaces. The lease agreement with Danske Bank runs until September 2032, with a partial break option in 2027 (option to terminate 10%-30% of the premises). The rent is annually adjusted with 100% (upwards only) of the change in the Finnish cost-of-living index.

The landlord is responsible for renewal and life cycle repairs of structures, HVAC, and automation systems.

GLOSTRUP RETAIL PARK AS

Retail property in Glostrup

Power A/S, Svane Køkkenet København ApS, Sport24 A/S et al.

The property consists of two buildings, where one of them was built in 1973 and completely renovated in 2015. The second building was built in 2022. Total lettable area is 14,559 sqm. The property is leased to 10 tenants. The weighted unexpired length of the lease agreements is December 2029. All lease agreements escalate annually by the change in the Danish CPI. However, most of the leases have mininmum and maximum levels for escalation ranging between 1.50% and 2.00% minimum and 3.00% and 4.00% maximum.

Financing*

The portfolio companies are financed separately with collateral in the assets owned by the portfolio company. There are no guarantees from the fund. A substantial portion of interest rate risk is mitigated through fixed interest rate swaps.

Per end of Q4 2024, the loan to value of the portfolio companies (Fund’s share) was 60%. 78% of the interest rate exposure is fixed. The interest rate swaps have a weighted remaining lifetime of 1.9 years. The weighted average interest rate for the portfolio, including margins, was 3.5% at the end of the quarter. The fund has a leverage ratio of 4.1 based on the gross method and 2.2 based on the commitment method.

Since the fixed interest rate swaps were entered into, the long-term interest rates have increased. This results in the swaps being in the money. By the end of Q4 2024, the value of the fixed interest swaps was NOK 37.4 million for the fund.

The fund has sold forward DKK 362 million, SEK 615 million, and EUR 22 million to mitigate FX rate risk. The market value of the swaps is per Q4 2024 NOK 2.1 million.

As of December, 2024, the portfolio companies in Växjö, and Sandsli were in breach of loan covenants due to their LTV ratios being too high. This means that the companies cannot pay dividends until their LTV is once again within the specified limits.

*All figures reported on this page exclude the development project at Arlandastad.

Market Comment

The Nordic economies experienced moderate growth in 2024, with improvement expected from 2025 onward. Inflation has eased, paving the way for potential rate cuts. Overall, GDP growth and employment are projected to gradually strengthen across the region in the coming years.

The economic environment:

NORWAY: Norway’s economic growth remained moderate in 2024. According to Statistics Norway (SSB), mainland GDP grew by 0.6%, constrained by higher interest rates and persistent inflation, which weighed on household consumption. Norges Bank projects growth to accelerate to 1.9% in 2025, 2.7% in 2026, and 2.5% in 2027, supported by increased public spending, rising petroleum investments, and a recovery in household consumption.

Unemployment has risen slightly from historically low levels but remains stable overall. Registered unemployment stood at 3.7% in 2024, with a modest increase to 3.9% anticipated in 2025, followed by a decline to 3.5% by 2027. Norges Bank estimates capacity utilization will remain close to normal levels until mid-2025. Inflation has eased significantly since its peak in 2022. The

Consumer Price Index (CPI) recorded a 12-month growth rate of 2.4% in November 2024. Inflation is forecasted to decline further to 2.5% in 2025 and stabilize around 2.3% in 2026. However, price growth remains influenced by elevated labor costs and robust demand for domestic services.

The policy rate was kept unchanged at 4.5% in December 2024, but Norges Bank has signaled that rate cuts will likely begin in March 2025, assuming inflation continues to moderate and the labor market remains stable. Forecasts suggest the policy rate will be reduced gradually in the coming years, albeit at a slower pace than previously anticipated.

SWEDEN: Riksbanken stated in its December 2024 report that inflation has significantly declined throughout the year, now standing at 1.5%, well below the 2% target. The bank expects inflation to rise moderately to 1.8% in 2025 and reach the target of 2% in 2026.

Economic growth has been weak, with GDP increasing by only 0.4% in 2024, driven by low exports and weak demand. Riksbanken projects a recovery in GDP growth to 1.8% in 2025, 2.6% in 2026, and 2.1% in 2027, supported by improved purchasing power and stronger domestic demand.

Unemployment increased throughout the year, ending at 8.7% in 2024. It is expected to remain at this level in 2025 before gradually decreasing to 8.0% by 2027. To support the economy, Riksbanken decided to cut the policy rate by 0.25 percentage points to 2.5% in December 2024, marking a total reduction of 1.5 percentage points since May of the same year. The bank has indicated the possibility of further cuts in the first half of 2025 if inflation developments warrant it.

FINLAND: Finland’s economy shows signs of weak recovery after a period of recession, but the Bank of Finland still expects negative growth of -0.5% in 2024. Weak exports, low demand, and reduced consumer confidence are among the factors weighing on growth. For 2025, the economy is projected to grow by 0.8%, followed by stronger growth of 1.8% in 2026 and stabilization at 1.3% in 2027.

Unemployment is expected to rise to 8.7% in 2025, before gradually decreasing to 8.2% in 2026 and 7.7% in 2027. Despite this, the labor market will remain under pressure early in the forecast period.

Inflation in Finland has declined significantly and was 1.0% for 2024. Increased taxes are expected to contribute to moderate inflation growth of 1.9% in 2025. Inflation is then expected to decline to 1.5% in 2026 and 1.7% in 2027, driven by moderate demand growth and economic recovery.

DENMARK: The Danish economy grew moderately in 2024, with a GDP increase of 1.7%. The Danish National bank estimates growth of 1.3% in 2025 and 1.5% in 2026, driven by high financing costs and low investment activity. Unemployment remained stable at 5.0% in 2024 and is expected to remain unchanged in 2025 (IMF). Employment has seen a slight increase, but restrictive monetary policy dampens the demand for labor.

Inflation was 1.9% in December 2024 compared to the same month the previous year. Nationalbanken expects inflation to stabilize around 1.8% in 2025 and 1.6% in 2026. The central bank rate was reduced by 0.25 percentage points in both June and September 2024, followed by additional cuts of 0.25 percentage points in October and December, bringing the rate down to 2.85%. These reductions, aligned with decisions by the European Central

Bank, ensure the stability of the Danish krone against the euro. Further rate cuts are expected in 2025.

Inflation and rent levels:

The rent from tenants is normally indexed to the relevant country’s CPI. Hence, the development in CPIs is highly relevant for the portfolio revenue. Some of the contracts have minimum, maximum and/or % of CPI clauses.

Per December 2024, the 12-month CPI growth was 0.8 percent in Sweden, 2.2 percent in Norway, 1.9 percent in Denmark, and 0.7 percent in Finland.

Market interest rate levels:

The 3-month interbank interest rate has decreased by 5 bps in Norway, by 54 bps in Sweden, by 54 bps in Denmark and by 60 bps in Finland since September 2024.

Long term (10Y) interest rates have increased by 56 bps in Norway, 49 bps in Sweden, 1 bps in Denmark and 2 bps in Finland.

Overall, the Nordic central banks have begun to ease their monetary policy and cut in the key policy rates are expected by most of the central banks.

External financing (Credit margins):

The climate for securing external financing for commercial real estate from banks has improved since the start of 2024 due to a better economic outlook. However, attractive financing remains challenging to secure and is primarily available for high-quality properties and reputable investors.

Yield and Commercial Real Estate Prices:

By the end of the quarter the reported prime yield for logistics properties were 5.75 per cent in Norway, 5.35 per cent in Finland, 5.25 per cent in Denmark and 5.25 per cent in Sweden.

By the end of the fourth quarter in 2024 the reported prime yield for office properties were 4.75 per cent in Norway, 5.25 per cent in Finland, 4.25 per cent in Denmark and 4.0 per cent in Sweden.

The yields reported are for certain areas’ prime logistics properties and the yield level differs based on geographic location, state of the property etc.

Yield gap:

During the quarter, 5-year interest rate has increased by 59 bps in Norway, 2 bps in Denmark, 3 bps in Finland and 49 bps in Sweden. Loan margins have been stable during the quarter, allthough we have observed lower margins from some banks. Prime yield for logistics and office have changed slightly for some segments, but has mainly remained flat for all the Nordic countries and segments. The net effect is a reduction in the yield gap for most of the Nordic countries and segments. The main driver is the change in interest rates.

Transaction Volumes:

The total transaction volume for all commercial real estate in Sweden on a year-to-date basis per December was SEK 98.0 billion, which is up from SEK 76.1 billion for the same period last year.

In Norway, the transaction volume in the same period amounted to NOK 63.8 billion compared to NOK 38.9 billion in the corresponding period in 2023. (Colliers Research).

(Sources: The countries’ central bank publications and national statistical agencies, IMF, Nordea Markets, Akershus Eiendom, Jones Lang LaSalle, MSCI Real Estate, Colliers Research, Union Gruppen.)

Yield and Yield Gap - Logistics

By the end of the 4th quarter of 2024 reported prime yields for logistics properties were 5.75% in Norway, 5.25% in Sweden, 5.35% in Finland, and 5.25% in Denmark.

Yield Gap Logistics, Norway

Nordea Analytics | Akershus Eiendom (non-official reports, per Q4 2024)

Yield Gap Logistics, Sweden

Yield Gap Logistics, Denmark

Yield and Yield Gap - Office

By the end of the fourth quarter in 2024 the reported prime yield for office properties were 4.75% in Norway, 5.25% in Finland, 4.25% in Denmark and 4.0% in Sweden.

Yield Gap Office, Norway

Yield Gap Office, Sweden

Yield Gap Office, Denmark

Interest Rates and Time Premium

The 3-month interbank interest rate has decreased by 5 bps in Norway, by 54 bps in Sweden, by 54 bps in Denmark and by 60 bps in Finland since September 2024. Long term (10Y) interest rates have increased by 56 bps in Norway, 49 bps in Sweden, 1 bps in Denmark and 2 bps in Finland. The time premium has therefore increased for all the Nordic countries but is still negative for all countries except Sweden. A negative time premium may in some situations be interpreted as an indication of an expected recession.

Source: Nordea Analytics

The time premium is the difference between the long interest rate and the short interest rate. A positive time premium might be an indication of future growth expectations, while a negative premium might indicate weak growth expectations.

CPI (Inflation)

The rents from tenants is normally indexed according to the relevant country’s CPI development. Per December 2024, the 12-month CPI growth was 0.8 % in Sweden, 2.2 % in Norway, 1.9 % in Denmark, and 0.7 % in Finland.

The Risk Management Function

The

Risk Management Function

In the Alternative Investment Funds Act (AIFM Act) § 3-7 it is stated that the AIF manager should have a risk management function that is separated from the manager’s operational activities. In Swiss Life Asset Managers Funds is this, among other things, carried out by having separate leaders for the Portfolio Management functions and the Risk Management functions. The Risk Management function shall not perform any tasks that may be in conflict with the operational activities. The Board of Swiss Life Asset Managers Funds has also adopted instructions and a routine collection that all employees must be familiar with and comply with in their daily work.

The risk management function’s aim is also to support the Management team in the identification and reduction of risk. Central to this work is to facilitate, follow up and control the manager’s due diligence process in the implementation of new investments. With due diligence means review, evaluation and control of the investment object’s legal, technical, financial and other essential elements before the investment decision.

Risk Management

Swiss Life Asset Managers Funds has established a Risk Policy for each AIF. Central is the AIF’s investment mandate, and in addition the Risk Policy contains other qualitative and quantitative management frameworks. The risk-elements are divided into and considered as follows:

Market risk

Market risk is the risk of losses or reduced future income and sales proceeds resulting from changes in market prices.

Credit and counterparty risk

Credit risk is the risk of financial loss due to charterers for each investment to meet their payment obligations.

Liquidity risk

Liquidity risk is the risk that the company is unable to meet short term financial demands when due. This usually occurs due to the inability to convert an asset to cash without a loss of capital in the process.

Operational risk

Operational risk is the risk of loss resulting from the operation of the investments or as a result of operational errors or weaknesses in the management of the Fund Company.

Risk associated with leverage in the Portfolio Companies Risks associated with leverage is the risk of financial loss as a result of leverage in the Portfolio Companies, including non-fulfilment of covenants, amended swap- terms and -conditions, etc.

Reporting

Ongoing reporting to the responsible functions is a key part of the Risk Management function. The purpose of these reports is to document adherence to the relevant commitments, documenting deviations and establish reporting lines for handling exceptions. The Risk Management function reports quarterly as follows:

To investors in the AIFs (this report)

To each Board of the AIFs

To the Board of Swiss Life Asset Managers Funds

To the Financial Supervisory Authority (”Finanstilsynet”)

In addition, it is reported continuously to the Management team of Swiss Life Asset Managers Funds and to the Depositary.

The routines contain rules for escalation of the ”discovery” that Risk Management function optionally uncovers, including breach of an AIF’s investment mandate and risk policy.

Conflicts of Interest

AIF management entails several potential conflicts of interest that require transparency and information according to the AIF framework. The prospectus and private placement memorandum forming the official documentation for Swiss Life REF Nordic 2018, describes such conflict of interest and the management of these.

All entities in the Swiss Life Asset Managers Group have guidelines for managing conflicts of interest in their rules and procedures. All agreements involving Swiss Life REF Nordic 2018 and agreements between entities in the Swiss Life Asset Managers Nordic Group are entered into on an arm’s length principle.

Periodic information obligation

In the Alternative Investment Funds Act (AIFM Act) § 4-3: The Manager must regularly provide the investors with the following information:

• The Manager considers 100 per cent of the fund’s assets to be illiquid (with the exception of current operating liquidity/cash balance. This is based on the fact that commercial real estate is an asset class that is difficult to trade. The fund is levered and therefore seeks to maintain a reasonable level of liquidity. From the fund is fully invested surplus liquidity will be paid of to the investors on an ongoing basis (semi-annually)

• There are no changes in systems for liquidity management

• The Manager considers the fund’s risk profile to be high, based on the fund’s investment mandate which stipulates that all available capital must be invested.

Ballerup, Denmark Vestby, Norway (sold)

Office

Tryg Forsikring A/S, Nets A/S

Property type: Office

Portfolio company name: København Kontorbygg II AS

Address: Klausdalsbrovej 601, 2750 Ballerup, Denmark

Year of construction: 1989

Refurbished 2009-2011, 2018-2019

Lettable area (Sqm): 67,787

Plot size (Sqm): 162,596

Tenant: Tryg Forsikring A/S, Nets A/S

Date of acquisition: 15.01.2020

End of lease term at acquisition (WAULT): 23.09.2035

Yield at acquisition: 4.4%

Property price at acquisition: DKK 1,115 million

Invested equity in the portfolio company: DKK 148 million

Fund share in portfolio company (%): 33.5% CPI

Logistics DSV Solutions AS

Property type: Logistics

Portfolio company name: Vestbylog AS

Address: Toveien 2, Vestby, Norway

Year of construction: 2020

Lettable area (Sqm): 58,383

Plot size (Sqm): ~170,000

Tenant: DSV Solutions AS

Date of acquisition: 23.06.2020

End of lease term at acquisition (WAULT): 31.07.2032

Yield at acquisition: 5.6%

Property price at acquisition: NOK 895.0 million

Oslo, Norway Kongsberg, Norway

Logistics and office

FMG AS, Danx AS & Meca Norge AS

Industrial Kongsberg Næringsparkutvikling AS Property type: Logistics and office

Portfolio company name: Østre Aker Lagerbygg AS

Address: Østre Aker Vei 95, Oslo , Norway

Year of construction: 1969/2019

Lettable area (Sqm): 10,998

Plot size (Sqm): 12,906

Tenant: FMG AS, Danx AS & Meca Norge AS Date of acquisition: 11.08.2020

End of lease term at acquisition (WAULT): 11.01.2027

Property type: Industrial

Portfolio company name: Kongtech AS

Address: Kirkegårdsveien 45, Kongsberg, Norway

Year of construction: 2006/2013

Lettable area (Sqm): 10,480

Plot size (Sqm): 7,036

Tenant: Kongsberg Næringsparkutvikling AS

Date of acquisition: 18.12.2020

End of lease term at acquisition (WAULT): 31.08.2031

Yield at acquisition: 5.7%

Property price at acquisition: NOK 240.5 million

Lillestrøm, Norway Hamar, Norway

Portfolio company name: Øst Bygg & Handel AS Address: Isakveien 22 – 24, Lillestrøm, Norway

Year of construction: 2010

Lettable area (Sqm): 4,910 Plot size (Sqm): 11,181

Yield at acquisition: 5.4% (Øst Bygg & Handel AS)

Property price at acquisition: NOK 415.0 million (Øst Bygg & Handel AS) Invested equity in the portfolio company: NOK 79.2 million (Øst Bygg & Handel AS)

Fund share in portfolio company (%): 60.0% (Øst Bygg & Handel AS)

Portfolio company name: Øst Bygg & Handel AS Address: Åkersvikvegen 30, Hamar, Norway

Year of construction: 2000 / 2003 / 2008

Lettable area (Sqm): 5,246 Plot size (Sqm): 17,099

Tenant: Optimera AS Date of acquisition: 18.03.2021 End of lease term at acquisition (WAULT): 02.06.2030

Yield at acquisition: 5.4% (Øst Bygg & Handel AS)

Property price at acquisition: NOK 415.0 millioner (Øst Bygg & Handel AS)

Invested equity in the portfolio company: NOK 79.2 million (Øst Bygg & Handel AS)

Fund share in portfolio company (%): 60.0% (Øst Bygg & Handel AS)

CPI indexation: 100% of CPI

Fredrikstad, Norway Bergen, Norway

Retail

Skeidar Fredrikstad AS og Jula Norge AS

Property type: Retail

Portfolio company name: Øst Bygg & Handel AS

Address: Dikeveien 15, Fredrikstad, Norway

Year of construction: 2012

Lettable area (Sqm): 10,431

Plot size (Sqm): 9,981

Tenant: Skeidar Fredrikstad AS and Jula Norge AS

Date of acquisition: 18.03.2021

End of lease term at acquisition (WAULT): 11.03.2032

Yield at acquisition: 5.4% (Øst Bygg & Handel AS)

Property price at acquisition: NOK 415.0 million (Øst Bygg & Handel AS)

Invested equity in the portfolio company: NOK 79.2 million (Øst Bygg & Handel AS)

Fund share in portfolio company (%): 60.0% (Øst Bygg & Handel AS)

CPI indexation: 100% of CPI

Office

Aker Solutions ASA

Property type: Office

Portfolio company name: Sandslimarka Kontorbygg AS

Address: Sandslimarka 55, Bergen, Norway

Year of construction: 1990 (Refurbished in 2018-2019)

Lettable area (Sqm): 13,100

Plot size (Sqm): 11,687

Tenant: Aker Solutions ASA

Date of acquisition: 14.06.2021

End of lease term at acquisition (WAULT): 28.10.2026

Yield at acquisition: 6.8%

Property price at acquisition: NOK 284.0 million

Invested equity in the portfolio company: NOK 109.5 million

Fund share in portfolio company (%): 90.0%

CPI indexation: 100% of CPI

Helsingborg, Sweden Norrköping, Sweden

Logistics

Frigoscandia AB

Property type: Logistics

Portfolio company name: Helsinglog AB

Address: Långebergavägen, Helsingborg, Sweden

Year of construction: 2021

Lettable area (Sqm): 10,822

Plot size (Sqm): ~31,000

Tenant: Frigoscandia AB

Logistics

Rusta AB

Property type: Logistics

Portfolio company name: Norrlog III AS

Address: Logistikvägen 1, Norrköping, Sweden

Year of construction: 2021

Lettable area (Sqm): 68,500

Plot size (Sqm): 107,662

Tenant: Rusta AB

Date of acquisition: 22.09.2020

End of lease term at acquisition (WAULT): 01.11.2041

Yield at acquisition: 4.9% Property price at acquisition: SEK 910.0 million

ä xjö, Sweden

Logistics

PostNord Sverige AB

Property type: Logistics

Portfolio company name: Vaxlog Fastighets AB

Address: Nylandavägen 15, Vaxjö, Sweden

Year of construction: 2018

Lettable area (sqm): 16,877

Plot size (sqm) 94,517

Tenant: PostNord Sverige AB Date of acquistion: 17.12.2021 End

Arlandastad, Sweden Development

Property type: Development

Portfolio company name: Arlandastad F60 AB

Address: Sigtuna Norslunda 50:1, Sigtuna, Sweden

Year of construction: Under development

Lettable area (Sqm):

Plot size (Sqm): ~124,400

Tenant: N/A

Date of acquisition: 27.06.2022

End of lease term at acquisition (WAULT): N/A

Yield at acquisition: N/A

Property price at acquisition: N/A Invested equity in the portfolio company: SEK 145.3 million Fund share in portfolio company (%): 50.0% Fund share in underlying investment (%): 17.5%

CPI indexation: N/A

Stavanger, Norway

DNO ASA et al.

Property type: Office

Portfolio company name: Stavanger City Office AS

Address: Badehusgata 33, 37 & 39, Stavanger, Norway

Year of construction: 1905, 1999 and 1985 (Refurbished 2016-2022)

Lettable area (sqm): 18,473

Plot size (sqm) 10,288

Tenant: DNO ASA, Altera Infrastructure, et al. Date of acquistion: 22.06.2022

End of lease term at acquistion (WAULT): 19.06.2026

Yield at acquisition: 6.1%

Property price at acquisition: NOK 587.5 million Invested equity in the portfolio company: NOK 74.0 million

share in portfolio company (%): 34.0%

indexation: 100% of CPI

Næstved, Denmark

Elgiganten A/S et al.

Property type: Retail

Portfolio company name: Næstved Retail Park AS

Address: Vestergårdvej 30, Næstved, Denmark

Year of construction: 2022

Lettable area (Sqm): 18,534

Plot size (Sqm): 49,249

Tenant: Elgiganten A/S, Jysk A/S, Harald Nyborg A/S et al.

Date of acquisition: 30.05.2021

End of lease term at acquisition (WAULT): 22.12.2032

Yield at acquisition: 6.1%

Property price at acquisition: DKK 315.0 million

Invested equity in the portfolio company: DKK 75.4 million

Fund share in portfolio company (%): 60.0%

CPI indexation: 100% of CPI (min and max clauses, mostly 1%-3%).

Helsinki, Finland

Glostrup, Denmark

Televisiokatu 1 & 3, Helsinki, Finland

1-19, Glostrup,

Swiss Life Asset Managers Funds AS – AIFM License

The Manager was authorized as an alternative investment fund manager January 28 2015, pursuant to the Norwegian Alternative Investment Fund Management Act implemented 1 July 2015.

Swiss Life REF Nordic 2020 has been established as an Alternative Investment Fund (AIF). The Manager has notified The Norwegian Financial Supervisory (FSA) of the intent to market the AIF to professional investors and on November 13 2017 the notification was registered.

Registration as an AIF requires the appointment of a depositary. View Procurator AS has been appointed as the AIFs depositary.

The Manager will be subject to the conflict of interest provisions in the AIFM Act and is legally obligated to take measures to identify, manage and supervise any conflicts of interest that arise in connection with the Manager’s management of the Fund. Please see section Risk Management for further information.

Important information

This fund update has been prepared by Swiss Life Asset Managers Funds AS (SLAM Funds). The update solely aims to provide guidance and information. Under no circumstances is this update meant to be considered as a tool in financial or investment advising, hereunder recommendations of purchase or sale, with or without compensation, of financial instruments or other forms of financial assets.

The information contained herein has been obtained from sources believed to be reliable and in good faith. SLAM Funds can however not guarantee or be held financially or legally responsible for the accuracy, completeness or correctness of the information contained in this fund update. We underline that investing in shipping and/or offshore projects are associated with risk. All investors must be prepared that such investments might result in monetary losses. Anyone who uses this update as a basis for purchasing shares at a later time must make sure that all relevant and updated information is obtained. The information in this fund update is only valid per date of preparation. Possible investors are encouraged to go through the projects thoroughly before investing. All documentation and analyses can be explained

by contacting our offices.

Investors are encouraged to seek advice in any type of financial investments made in private or as a corporation. Investors must comply that any statements or comments on future predictions made in this update might not occur. Hereunder, Investors must understand and accept that present gains are not a guarantee for future gains. Any investment described or mentioned in this update is risk sensitive with the possibility of losses occurring.

Employees in the Swiss Life Asset Managers Nordic Group and any related parties will from time to time own shares in projects arranged by Swiss Life Asset Managers Transactions, or in funds and companies managed by Swiss Life Asset Managers Funds. A list of shares owned by employees in the Swiss Life Asset Managers Nordic Group is available upon request to Swiss Life Asset Managers’ Compliance Officer.

This update is intended only to those who receive it directly, and must not be copied or in other ways be distributed. SLAM Funds disclaims all liability, both legal and financial, for any losses (directly or indirectly) due to the usage and interpretation of this update and its contents.