PRESENT A TION CARNEGIE AGENDA PART 1 COMPANY PRESENTATION - PowerPoint PPT Presentation

FEBRUARY 23, 2018 PRESENT A TION CARNEGIE

AGENDA PART 1 – COMPANY PRESENTATION & BUSINESS RATIONALE PART 2 – FINANCIAL REPORT FULL YEAR 2017 PART 3 – GROWTH CONTINUE 2 PRESENTATION CARNEGIE | FEBRUARY 23, 2018

PART 1 COMPANY PRESENTATION & BUSINESS RATIONALE

COMPANY PRESENTATION & BUSINESS RATIONALE BUSINESS IDEA AND OBJECTIVES OVERALL OBJECTIVES BUSINESS IDEA Stendörren Fastigheter FINANCIAL Stendörren Fastigheter creates high risk-adjusted creates long-term growth and return for its shareholders value creation by acquiring, by acquiring, developing OBJECTIVES developing and managing and managing properties. properties within the greater • Demonstrate an average long-term Stockholm region, with focus annual return on equity of at least 12% on the segments warehouse and light industrial. • The long-term interest coverage ratio must be at least 2.0x • The long-term equity ratio shall be 35 % and never fall below 20% 4 PRESENTATION CARNEGIE | FEBRUARY 23, 2018

COMPANY PRESENTATION & BUSINESS RATIONALE SNAPSHOT OF STENDÖRREN • Founded in 1995 as the commercial property arm of Kvalitena • Separated from Kvalitena in November 2014 and thereafter listed on BACKGROUND UPPSALA Nasdaq First North Premier VÄSTERÅS • In the process of changing listing venue to Nasdaq Stockholm ESKILSTUNA STOCKHOLM ÖREBRO SÖDERTÄLJE • Property value of SEK 6.5bn distributed over approx. 603,000 sq.m PROPERTY • Commercial real estate portfolio located in Greater Stockholm region consisting of 100 properties with a focus on light industrial and logistics PORTFOLIO • The Greater Stockholm region is one of the fastest growing regions in LINKÖPING Europe both in terms of population and economic GÖTEBORG JÖNKÖPING • LTM Q4 2017 rental income of SEK 453m and a NOI of SEK 316m, FINANCIALS resulting in a profjt from property management of SEK 161m MALMÖ 5 PRESENTATION CARNEGIE | FEBRUARY 23, 2018

80% UPPSALA PROPERTY PORTFOLIO WITHIN THE GREATER STOCKHOLM REGION ENKÖPING VÄSTERÅS STORSTOCKHOLM ESKILSTUNA STOCKHOLM SÖDERTÄLJE FLEN 6 6 PRESENTATION REMIUM | 15 NOVEMBER 2017 PRESENTATION CARNEGIE | FEBRUARY 23, 2018

COMPANY PRESENTATION & BUSINESS RATIONALE ORGANISATION - CREATED FOR GROWTH ”HAVING STAFF IN-HOUSE 40 HELPS US CREATE LONG- BOARD TERM RELATIONSHIPS WITH OUR TENANTS AND ENSURES THE DELIVERY” CEO co-workers MANAGEMENT TEAM MARKETING AND LEASING PROPERTY DEPARTMENT FINANCE DEPARTMENT DEPARTMENT PROJECT MANAGEMENT ASSET MANAGEMENT 7 PRESENTATION CARNEGIE | FEBRUARY 23, 2018

COMPANY PRESENTATION & BUSINESS RATIONALE PROJECT DEVELOPMENT - APPROX. 1 000 MSEK ”OUR PORTFOLIO OF CASH FLOW YIELDING PROPERTIES CAN SUP- PROPERTY PORT A PROJECT PORTFOLIO OF DEVELOPMENT MAX 15% OF BETWEEN 15% OF TOTAL BALANCE SHEET PORTFOLIO VALUE” CASH FLOW GENERATED ADVANTAGES MIN 85% OF BALANCE SHEET • Having a project management team in-house is a great strength for the running business • Project development creates value on the balance sheet • Likely to create 2 - 6 % annual growth from project developments • Zoning planning of land requires less equity in relation to created value • Substantial ROE potential 8 PRESENTATION CARNEGIE | FEBRUARY 23, 2018

COMPANY PRESENTATION & BUSINESS RATIONALE POPULATION GROWTH 1995 - 2016 REGIONAL CITIES INCL. SURROUNDING MUNICIPALITIES 35,0% 100,0% WHY 90,0% FOCUSING ON 30,0% STOCKHOLM? 80,0% 25,0% 70,0% 60,0% 20,0% 50,0% 15,0% 40,0% 30,0% 10,0% 20,0% 5,0% 10,0% 0,0% 0,0% Stockholm Malmö Göteborg Halmstad Umeå Örebro Växjö Jönköping Västerås Linköping Borås Eskilstuna Norrköping Kristianstad Kalmar Trollhättan Gävle Falun Karlstad Skövde Source: Evidens 9 PRESENTATION CARNEGIE | FEBRUARY 23, 2018

COMPANY PRESENTATION & BUSINESS RATIONALE EMPLOYMENT GROWTH IN THE STOCKHOLM REGION 1995 - 2016 Service sector Total employment 210 190 170 Index 150 130 110 90 2000 2004 2002 2003 2005 2006 2007 2008 2009 2001 2010 1996 1999 2014 2015 2016 1995 1997 1998 2012 2013 2011 Year Source: Evidens 10 PRESENTATION CARNEGIE | FEBRUARY 23, 2018

COMPANY PRESENTATION & BUSINESS RATIONALE LOGISTICS IN THE GREATER STOCKHOLM REGION AVERAGE RENT INCREASE IN STENDÖRREN’S Vacancy 16,0% PORTFOLIO 15 % Yield 11,0% Stibor 90 6,0% 1,0% Annual rent, mSEK 2010 2011 2012 2013 2014 2015 2016 2017 60000 50000 40000 680 Rent 18,0% 30000 Infmation 670 20000 660 13,0% 10000 650 8,0% 0 640 EXISTING RENT 630 RENT AFTER RENEGOTIATION 3,0% 620 610 -2,0% 2010 2011 2012 2013 2014 2015 2016 2017 Source: Newsec 11 PRESENTATION CARNEGIE | FEBRUARY 23, 2018

PART 2 FINANCIAL REPORT FULL YEAR 2017

EQUITY RATIO: RENTAL VALUE: 36 % 453 MSEK LETTABLE AREA: 603 000 M 2 NET PROFIT: 396 MSEK PROPERTY VALUE: 6 494 MSEK LTV: 56 % NET OPERATING INCOME: 316 MSEK 13 PRESENTATION CARNEGIE | FEBRUARY 23, 2018

FINANCIAL REPORT FULL YEAR 2017 2014 - 2017 Q4 2017 Q4 2016 Q4 2015 Q4 2014 Market value, mSEK 6 494 5 817 4 889 1 962 No. properties 100 95 81 27 Lettable area, sq m 603 000 612 000 585 000 252 000 NOI running 12 m*, mSEK 329 316 302 - 307 135 Equity, mSEK 2 399 2 054 1 489 724 Senior debt, mSEK 2 914 2 653 2 621 - Bond, mSEK 790 750 575 - Swaps/caps** - nominal value, mSEK 1 800 1 451 1 451 - Market First North First North First North First North Premier Premier Premier Premier Market cap, mSEK 1 878 1 996 1 381 - *This is not a forecast of the expected outcome, but Stendörren’s estimated earnings running 12m. **In February 2017 all swaps were terminated and replaced by 1,8 Bn SEK of intetest caps leading to an annualized interest saving of 21 MSEK and improvement of annualized ICR to 2,6x. 14 PRESENTATION CARNEGIE | FEBRUARY 23, 2018

FINANCIAL REPORT FULL YEAR 2017 KEY METRICS EQUITY RATIO, % ICR, x ROE (AVERAGE), % 40 50 3,0 2,5 40 2,0 30 30 1,5 20 1,0 20 10 0,5 10 0 0,0 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 15 PRESENTATION CARNEGIE | FEBRUARY 23, 2018

FINANCIAL REPORT FULL YEAR 2017 INCOME BUILD-UP Q1 - Q4 2017 Rental value Vacancy Property expenses Central admin Financing costs Value changes Taxes Net income 600 500 498 45 400 126 362 300 138 NOI 316 51 396 200 104 Prop Mgmnt 161 1 00 16 PRESENTATION CARNEGIE | FEBRUARY 23, 2018

FINANCIAL REPORT FULL YEAR 2017 PORTFOLIO BUILD UP - ACTUALS 7 000 9,0% 6494 6039 5 880 5 817 6 000 8,0% 5 752 5 537 5 380 4826 5 000 7,0% 6,5% 6,5% 6,3% 6,2% 6,1% 6,0% 6,0% 6,0% 5,9% 5,9% 4 000 6,0% 5,8% 5,7% 5,6% 5,4% 5,4% 5,3% 3 000 5,0% 2 000 4,0% 994 1 000 3,0% 814 571 520 507 504 495 380 - 2,0% Q1 '16 Q2 '16 Q3 '16 Q4 '16 Q1 '17 Q2 '17 Q3 '17 Q4 '17 Yield, 12m avg Yield excl non-earning, 12m avg Non-earning assets Property value 17 PRESENTATION CARNEGIE | FEBRUARY 23, 2018

FINANCIAL REPORT FULL YEAR 2017 KEY METRICS OVER TIME AND FINANCIAL RATIOS 75,0% 3,00 KEY FINANCIAL RATIOS JAN–DEC JAN–DEC NOI Excess Ratio 2017 2016 2,80 65,0% 2,60 Excess Ratio (NOI/Rental income), % 70% 68% LTV 2,40 LTV (property level) 55,0% ROE (12m average), % 18% 35% 2,20 Avrg. Interest fjxing, years 2,2 2,2 45,0% 2,00 ROE 1,80 Avrg. Debt maturity, years 1) 2,4 3,5 35,0% 1,60 Equity Ratio Equity Ratio, % 36% 34% ICR (right hand scale) 1,40 25,0% LTV, % 56% 57% 1,20 LTV (property level), % 45% 46% 15,0% 1,00 Q2 ´15 Q3 ´15 Q4 ´15 Q1 '16 Q2 '16 Q3 '16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 ICR, x 2,5 2,3 NOI Excess Ratio LTV ICR (right hand scale) 1) Following changes in the debt portfolio in early 2018 Average Debt Maturity is Equity Ratio ROE LTV (property level) approx. 3,0 years 18 PRESENTATION CARNEGIE | FEBRUARY 23, 2018

FINANCIAL REPORT FULL YEAR 2017 KEY METRICS GROWING PROPERTY PORTFOLIO DEBT SERVICE CAPACITY SOLID BALANCE SHEET Equity Property value , mSEK Net operating income , mSEK NOI LTM 2) Equity ratio Equity 6 039 6 494 36% 36% 313 316 304 35% 290 5 752 2 242 2 399 33% 278 5 537 30% 2 099 28% 27% 4 826 1 899 84 4 496 187 81 81 4 129 79 77 74 72 72 68 67 71 1 516 1 307 1 186 35 48 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4Q1 Q2 Q3 Q4Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2015 2016 2017 2015 2016 2017 2015 2016 2017 Lettable area , ’000 sq m Interest coverage ratio 1) Loan to value 612 603 602 2,5 2,5 599 591 590 68% 69% 69% 2,5 2,4 2,3 585 2,3 2,3 575 581 2,2 64% 63% 2,2 2,2 2,2 60% 59% 58% 58% 56% 56% 56% 2,0 544 550 532 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2015 2016 2017 2015 2016 2017 2015 2016 2017 1) Profjt from property management before fjnancial expenses in relation to fjnancial expenses, 2) Last twelve months 19 PRESENTATION CARNEGIE | FEBRUARY 23, 2018