INTERIM REPORT Q3 2019 INVESTORS PRESENTATION WHAT STANDS OUT? - - PowerPoint PPT Presentation

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INTERIM REPORT Q3 2019 INVESTORS PRESENTATION WHAT STANDS OUT? - - PowerPoint PPT Presentation

Oct 24, 2023 153 likes •328 views

INTERIM REPORT Q3 2019 INVESTORS PRESENTATION WHAT STANDS OUT? Good revenue growth and operational profit increase between years. Leasing functions proceeding well. Implementation of new strategy in progress. Green certification of

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SLIDE 1

INTERIM REPORT Q3 2019

INVESTORS PRESENTATION

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SLIDE 2

WHAT STANDS OUT?

✓ Good revenue growth and operational profit increase between years.

✓ Leasing functions proceeding well. ✓ Implementation of new strategy in progress. ✓ Green certification of Smáralind in final phase.

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SLIDE 3

KEY FIGURES

COMPARISON WITH THIRD QUARTER 2018

REVENUE GROWTH BETWEEN YEARS

20%

(13%)

EBITDA INCREASE BETWEEN YEARS

29%

(13%)

LEASING RATIO

97%

(97.5%)

EBITDA RATIO OF LEASING REVENUES

76%

(71%)

YIELD OF INVESTMENT PROPERTIES

5.3%

(5,0%)

REAL RETURN ON EQUITY

13.3%

(8,7%)

LEVERAGE

60.9%

(61.5%)

EQUITY RATIO

31.7%

(31.5%)

INTEREST BEARING DEBTS

136.2 b.ISK.

(127.8 b.ISK.)

ASSESSMENT CH. OF INVESMENT PROP.

1,077 m.ISK.

( 655 m.ISK.)

INTEREST BEARING DEBTS

83.0 b.ISK.

(78.6 b.ISK.)

Operations Profitability Balance AFTER TAX PROFIT

1,398 m.kr.

(776 m.ISK.)

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SLIDE 4

THIRD QUARTER 2019

INCOME STATEMENT

3Q 2019 3Q 2018

%Δ

Leasing revenues 2,304 1,922

19.9%

Revenues - operations in properties 146 134

9.0%

Revenues 2,450 2,056

19.2%

Operational costs of investment properties

  • 446
  • 452
  • 1.3%

Operations in properties

  • 156
  • 155

0.6%

Operational costs of investment properties

  • 602
  • 607
  • 0.8%

Administrative costs

  • 89
  • 90
  • 1.1%

Operational profit before assessment change 1,759 1,359

29.4%

Operational costs versus leasing revenues 76% 71% Assessment change of investment properties 1,077 655

Operational profit 2,836 2,014

40.8%

Net financial expenses

  • 1,088
  • 1,044

4.2%

Profit before tax 1,748 970

80.2%

Income tax

  • 350
  • 194

Net profit of the period 1,398 776

80.2%

1.922 2.306 2.251 2.290 2.304 1.359 1.644 1.607 1.633 1.759

Q3-18 Q4-18 Q1-19 Q2-19 Q3-19

Leasing income Operational results before assessment change

23,5% 20,2% 21,5% 21,6% 19,4%

3F-18 4F-18 1F-19 2F-19 3F-19

Investment properties operational costs

4,7% 4,3% 5,0% 4,8% 3,9%

3F-18 4F-18 1F-19 2F-19 3F-19

Administrative costs

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SLIDE 5

REGINN’S PROPERTY PORTFOLIO

FUNCTION GROUPING

* Gouping of the property portfolio in regard to size in m2

117 PROPERTIES 377.000 SQ. METRES

33% 33% 13% 17% 5%

Retail and service Office Sport, education and entertainment Industrial and storage Hotel

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SLIDE 6

REGINN‘S 10 MOST VALUABLE PROPERTIES

DIVERSIFIED AND WELL-KNOWN PROPERTIES Smáralind Katrínartún 2 & Borgartún 8-16 Egilshöll Áslandsskóli Hafnartorg Litlatún 3 Mjölnisholt 12-14 Ofanleiti 2 Hafnarstræti 83-89

40%

57%

*of Reginn´s property portfolio

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SLIDE 7

2019 48% '20-'21 12% '22-'23 17% >2024 23%

FINANCING

NEW BOND SERIES

  • Movement of 10 b.ISK. portfolio under the general insurance scheme within the

company‘s issuing framework.

  • Creating a 5 b.ISK. margin for bond issuing.
  • The company is now preparing a bond issue before the end of the year, offering

a new medium - term series.

  • Reliable 21 b.ISK. portfolio located in the capital area and in large populated

cores in the countryside

  • 24% of the portfolio is leased to public entities.

OPTIONS IN 2020

  • Possibility to refinance up to half of the company's loans
  • Various possibilities to view:
  • Green certification of properties opens possibilities for Green

bond issues

  • Foreign funding being studied
  • Specially covered portfolios

83% 13% 5%

LOCATION OF PROPERTIES

Höfuðborgarsvæðið Akureyri Nágrannasveitarfélög höfuðborgarsvæðisins Capital area Akureyri Near the capital area

AVAILABLE FOR PREPAYMENT

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SLIDE 8

COMPANY‘S LEASING ACTIVITIES

EXTENSIVE AND GOOD PROGRESS IN LEASING ACTIVITIES

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SLIDE 9

LEASING

  • Extensive leasing activity in summer and
  • autumn. Leasing this year will exceed the

last few years.

  • New and renewed contracts of 38.446 m2

in hands. About 24% are renewed contracts.

COMPANY’S LEASING RATIO STILL HIGH

  • In recent years, the leasing ratio has fallen

temporarily with the addition of new properties, paralell with large scale restructuring projects.

  • The leasing ratio is now 97% and rising. The ratio is

expected grow to 98% at the end of the year.

38.446

10.000 20.000 30.000 40.000 50.000

1F 2F 3F 4F

ANNUAL LEASED SPACE IN M2

2017 2018 2019 90,0% 92,0% 94,0% 96,0% 98,0%

1F 2015 1F 2016 1F 2017 1F 2018 1F 2019

LEASING RATIO 2015-2019

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SLIDE 10

ROAD AND COSTAL ADMINISTRATION – SUÐURHRAUN 3

COLLABORATIVE PROJECTS OF PUBLIC AND PRIVATE PARTIES

  • Reginn's offer was accepted following the tender of the Government Construction

Contracting Agency and the Ministry of Finance. Design and completion inventory at final stage . Expected to sign a leasing contract in November.

  • Leasing contract for 20 years for the Road and Costal Adminstration headquarters.

Structures of about 6,000 m2 with over a half in a new construction. Operating site

  • f 9,000 m2.
  • Various operating services are a part of the lease, such as maintenance and
  • peration of systems and internal finishing. Site maintenance and operation

including snow removal. The focus of the Government Construction Contracting Agency has been changing in this regard.

  • The financial scope of the contract is: Annual income of 200 m.ISK. Total

commitment 2,200 – 2,500 m.ISK. Of this new investment amounts to 1.400 m.ISK.

  • The project is expected to be delivered to the lessee in the second half of 2020.
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SLIDE 11

KATRÍNARTÚN 2, HÖFÐATORG

  • Lease contract is in place. Good progress in construction and plans for hand over in the coming

weeks.

  • Kvika will be at levels 7, 8 and 9. Lease contract for 10 years with option of extension. The size
  • f the project in total is about 3.500 m2.

DIRECTORATE OF HEALTH MOVES TO LEVEL 6

  • Contract was signed in October following the tender by the Government Construction Contracting

Agency and the Ministry of Finance, and space is being modified. Hand over is scheduled now in November.

  • Lease contract of 5 years with possibility of extension for 5 years. Leasing space size in total

about 1.500 m2

KVIKA BANKI – WILL BE A CORE LESSEE

  • A number of new companies and institutions have now moved to the tower at Höfðatorg, and

there is a considerable interest in operation space there.

  • The restructuring of the 1st and 2nd levels is under way. There will be, among other things,

restaurants and various services, office hotels etc.

NEW AND CHANGED TOWER

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SLIDE 12

PUBLIC ENTITIES LEASING CONTRACTS

HEALTH CARE – MENTAL HEALTH TEAM SOUTH, BÆJARLIND 1 - 3 IN KÓPAVOGUR

  • Reginn‘s offer was accepted following a tender by the Government Construction Contracting

Agency and the Ministry of Finance. Design and negotiation is in progress. Expected signing of a lease contract in coming weeks and delivery to lessee in coming February / March.

  • Lease contract for 8 years with possible extension. Size of leasing space 420 m2.
  • With the Mental Health Team South, all mental health teams have moved into Reginn‘s

properties.

CHIEF OF POLICE at Suðurnes - BREKKUSTÍGUR 39 IN REYKJANESBÆR

  • Enlargement and modifications of facilities.
  • Contract signed in August. Construction and modifications in progress, planned hand over in

1Q 2020.

  • Leasing contracts for 10 years. The size of the project about 1.100 m2.
  • Estimated financial scope of the two contracts: Annual revenue of 50 m.ISK. New investment
  • f 160 m.ISK.
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SLIDE 13

CHANGED STRUCTURE AND MANAGEMENT

REGINN‘S STRATEGY IN 2019

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SLIDE 14

Finance

Accounting, settlement, plans and credit management. Funding, refinancing. Information and analysis.

Director Jóhann Sigurjónsson Retail and Services Smáralind, Hafnartorg, Garðatorg, Litlatún, Hólagarður etc.. Director Baldur M. Helgason Business development and marketing BMH Public entities, PPP and leasing projects. Egilshöll, schools and kindergartens, office space leased to public entities. Director Sunna H. Sigmarsdóttir

Dagbjört E. Einarsdóttir, head lawyer Heiða Salvarsdóttir, compliance officier

CEO

Legal department / Compliancae

Commerciai properties and the public market Offices, hotels,

  • hostels. Industry,

warehouses and storage spaces Director Páll V. Bjarnason Property Operation, Operations in properties Green solutions SHS Contract management, leasing and coordination

  • f leasing issues.

Other income. PVB Project management, larger projects Torfi Hjartarson

REGINN PLC.

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SLIDE 15

20 LARGEST SHREHOLDERS 31ST OKTOBER 2019

  • Foreign investors about 4%

SHARE PURCHASE PLAN COMPLETED

  • Accepted on annual meeting 2019 and completed

30th September 2019.

  • Bought shares 21.929.825 (1,2% of shares) or for

467 m.ISK.

FINANCIAL CALENDER

  • 12th February 2020 – Annual Report 2019
  • 11th March 2020 – Annual Meeting 2020

No. Name Shares % 1 Pension Fund of Commerce 222,105,301 12.16% 2 Gildi - Pension fund 158,201,461 8.66% 3 State pension fund, A - dep. 112,480,000 6.16% 4 Sigla Ltd. - Investment company 100,000,000 5.48% 5 Birta Pension fund 87,050,743 4.77% 6 Stapi Pension fund 86,135,266 4.72% 7 Frjálsi lífeyrissjóðurinn – Pension fund 62,279,504 3.41% 8 Lífsverk pension fund 50,904,808 2.79% 9 Brimgarðar Ltd. - Investment company 49,933,333 2.73% 10 Söfnunarsjóður lífeyrisrétt. - Pen. fund 49,094,122 2.69% 11 Festa - Pension fund 48,561,245 2.66% 12 Global Macro Absolute Return A 46,771,138 2.56% 13 Sjóvá-Almennar tryggingar Plc. - Ins. 36,427,910 1.99% 14 State pension fund, B - dep. 36,176,700 1.98% 15 Stefnir - ÍS 15 - Investment fund 35,921,595 1.97% 16 Stefnir - ÍS 5 - Investment fund 33,426,432 1.83% 17 Arion banki Plc. 30,557,000 1.67% 18 Íslandsbanki Plc. 26,327,326 1.44% 19 FM eignir 1 ehf - Investment company 25,205,819 1.38% 20 FM eignir 2 ehf - Investment company 25,205,818 1.38% Total 20 largest 1,322,765,521 72.43%

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INTERIM REPORT 3Q 2019

THANK YOU