Financial effects from the acquisition

Financial effects for Pandox at full consolidation, completed divestment to Scandic at current exchange rate (*)

For business segment Leases rental income is expected to increase by approximately MSEK 1,200 with an estimated profitability in line with Pandox’s already existing leases in the UK and Ireland, on an annual basis.

Cash earnings are expected to increase by approximately MSEK 450, on an annual basis, based on an expected current tax rate of 18 percent. This corresponds to approximately SEK 2.30 per share, an increase of more than 20 percent measured on a rolling twelve-month basis (per 30 September 2025).

A total of 31 Investment Properties with a value of approximately MSEK 16,700 and an estimated average weighted property yield of 6.95 percent will be added to business segment Leases. This corresponds to a value creation of approximately MSEK 3,000, or approximately SEK 15 per share, as the properties are acquired at an implied value of approximately MSEK 13,700 with an estimated initial yield of approximately 8.40 percent, including expected transaction costs.

The value of the properties has been assessed based on Pandox's cash flow model, described in Pandox's Annual Report 2024, based on lease agreements in each individual hotel property. During the fourth quarter 2025, external valuations will be carried out to validate the assumptions made, whereby the values may be adjusted.

Pandox’s responsibility for future investments is limited to larger technical installations and building structures.

Pandox sees opportunities to, in close cooperation with Scandic, make future cash flow increasing and value enhancing investments in the portfolio.

Based on the market value of the property portfolio per 30 september 2025:

• The number of hotel properties increases to 193, of which 39 in the UK and 24 in Ireland.
• The portfolio value increases from approximately 76 billion SEK to approximately 93 billion SEK.
• The share of Investment Properties’ of the total portfolio, increases from approximately 80 percent to approximately 84 percent.
• Pandox’s loan to value ratio increases from approximately 50 procent to approximately 55 percent before the divestment to Scandic. After divestment, the loan to value ratio is expected to amount to approximately 52 percent, which can be compared with Pandox’s financial policy of a loan to value ratio between 45-60 percent.

During the fourth quarter of 2025 a smaller contribution to revenues and net operating income is expected in business segment Leases. However, the earnings effect for Pandox is expected to be negatively affected by non-recurring costs attributable to the acquisition and separation.

(*) EUR/SEK 11.05