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

▶
present a tion remium agenda
SMART_READER_LITE
LIVE PREVIEW

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

Oct 05, 2023 109 likes •372 views

MAY 9, 2018 PRESENT A TION REMIUM AGENDA PART 1 COMPANY PRESENTATION & BUSINESS RATIONALE PART 2 FINANCIAL REPORT JAN - MAR 2017 PART 3 GROWTH CONTINUE 2 PRESENTATION REMIUM | MAY 9, 2018 PART 1 COMPANY PRESENTATION &

slide-1
SLIDE 1

PRESENT A TION REMIUM

MAY 9, 2018

slide-2
SLIDE 2

PRESENTATION REMIUM | MAY 9, 2018 2

AGENDA

PART 1 – COMPANY PRESENTATION & BUSINESS RATIONALE PART 2 – FINANCIAL REPORT JAN - MAR 2017 PART 3 – GROWTH CONTINUE

slide-3
SLIDE 3

PART 1 COMPANY PRESENTATION & BUSINESS RATIONALE

slide-4
SLIDE 4

PRESENTATION REMIUM | MAY 9, 2018 4

COMPANY PRESENTATION & BUSINESS RATIONALE

BUSINESS IDEA AND OBJECTIVES

OVERALL OBJECTIVES

Stendörren Fastigheter creates high risk-adjusted return for its shareholders by acquiring, developing and managing properties.

FINANCIAL OBJECTIVES

  • Demonstrate an average long-term

annual return on equity of at least 12%

  • 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%

BUSINESS IDEA

Stendörren Fastigheter creates long-term growth and value creation by acquiring, developing and managing properties within the greater Stockholm region, with focus

  • n the segments warehouse

and light industrial.

slide-5
SLIDE 5

PRESENTATION REMIUM | MAY 9, 2018 5

MALMÖ GÖTEBORG JÖNKÖPING LINKÖPING UPPSALA VÄSTERÅS ÖREBRO ESKILSTUNA SÖDERTÄLJE STOCKHOLM

COMPANY PRESENTATION & BUSINESS RATIONALE

  • Founded in 1995 as the commercial property arm of Kvalitena
  • Separated from Kvalitena in November 2014 and thereafter listed on

Nasdaq First North Premier

  • Property value of SEK 6.7bn distributed over approx. 609,000 sq.m
  • Commercial real estate portfolio located in Greater Stockholm region

consisting of 101 properties with a focus on light industrial and logistics

  • The Greater Stockholm region is one of the fastest growing regions in

Europe both in terms of population and economic

  • LTM Q1 2018 rental income of SEK 468m and a NOI of SEK 323m,

resulting in a profjt from property management of SEK 165m

SNAPSHOT OF STENDÖRREN

BACKGROUND PROPERTY PORTFOLIO FINANCIALS

slide-6
SLIDE 6

SÖDERTÄLJE ESKILSTUNA FLEN VÄSTERÅS ENKÖPING UPPSALA STOCKHOLM

STORSTOCKHOLM

6 PRESENTATION REMIUM | MAY 9, 2018

80%

WITHIN THE GREATER STOCKHOLM REGION

PROPERTY PORTFOLIO

slide-7
SLIDE 7

PRESENTATION REMIUM | MAY 9, 2018 7

ORGANISATION - CREATED FOR GROWTH

CEO PROPERTY DEPARTMENT FINANCE DEPARTMENT

41

co-workers

ASSET MANAGEMENT MARKETING AND LEASING DEPARTMENT PROJECT MANAGEMENT MANAGEMENT TEAM BOARD ”HAVING STAFF IN-HOUSE HELPS US CREATE LONG- TERM RELATIONSHIPS WITH OUR TENANTS AND ENSURES THE DELIVERY”

COMPANY PRESENTATION & BUSINESS RATIONALE

slide-8
SLIDE 8

PRESENTATION REMIUM | MAY 9, 2018 8

PROJECT DEVELOPMENT - APPROX. 1 000 MSEK

”OUR PORTFOLIO OF CASH FLOW YIELDING PROPERTIES CAN SUP- PORT A PROJECT PORTFOLIO OF BETWEEN 15% OF TOTAL PORTFOLIO VALUE”

PROPERTY DEVELOPMENT MAX 15% OF BALANCE SHEET CASH FLOW GENERATED MIN 85% OF BALANCE SHEET

ADVANTAGES

  • 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

COMPANY PRESENTATION & BUSINESS RATIONALE

slide-9
SLIDE 9

PRESENTATION REMIUM | MAY 9, 2018 9

POPULATION GROWTH 1995 - 2016 REGIONAL CITIES INCL. SURROUNDING MUNICIPALITIES

COMPANY PRESENTATION & BUSINESS RATIONALE

0,0% 5,0% 10,0% 15,0% 20,0% 25,0% 30,0%

Stockholm Malmö Göteborg Halmstad Umeå Örebro Växjö Jönköping Västerås Linköping Borås Eskilstuna Norrköping Kristianstad Kalmar Trollhättan Gävle Falun Karlstad Skövde

35,0% 0,0% 10,0% 20,0% 30,0% 40,0% 50,0% 60,0% 80,0% 70,0% 90,0% 100,0%

Source: Evidens

WHY FOCUSING ON STOCKHOLM?

slide-10
SLIDE 10

PRESENTATION REMIUM | MAY 9, 2018 10

90 110 130 150 170 190 210 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Year Index

EMPLOYMENT GROWTH IN THE STOCKHOLM REGION 1995 - 2016

Total employment Service sector

COMPANY PRESENTATION & BUSINESS RATIONALE

Source: Evidens

slide-11
SLIDE 11

PRESENTATION REMIUM | MAY 9, 2018 11

LOGISTICS IN THE GREATER STOCKHOLM REGION

1,0% 6,0% 11,0% 16,0% 2010 2011 2012 2013 2014 2015 2016 2017

Vacancy Yield Stibor 90

  • 2,0%
3,0% 8,0% 13,0% 18,0% 610 620 630 640 650 660 670 680 2010 2011 2012 2013 2014 2015 2016 2017

Annual rent/sq m, Stockholm B-location Infmation

COMPANY PRESENTATION & BUSINESS RATIONALE

Source: Newsec

slide-12
SLIDE 12

PART 2 FINANCIAL REPORT JAN - MAR 2017

slide-13
SLIDE 13

PRESENTATION REMIUM | MAY 9, 2018 13

JAN - MAR 2018

NET PROFIT:

65 MSEK

LTV:

56 %

PROPERTY VALUE:

6 659 MSEK

RENTAL VALUE:

127 MSEK

NET OPERATING INCOME:

79 MSEK

LETTABLE AREA:

609 000 M2

EQUITY RATIO:

36 %

slide-14
SLIDE 14

PRESENTATION REMIUM | MAY 9, 2018 14

KEY METRICS

FINANCIAL REPORT JAN - MAR 2018

Q1 Q2

2016 2017

Q3 Q4 Q1 Q2 Q3 Q4 10 20 30 40 50 Q1

2018

18% 2,6x 36%

Q1 Q2

2016 2017

Q3 Q4 Q1 Q2 Q3 Q4 0,0 0,5 1,0 1,5 2,0 2,5 3,0 Q1

2018

10 20 30 40 Q1 Q2

2016 2017

Q3 Q4 Q1 Q2 Q3 Q4 Q1

2018

EQUITY RATIO, % ICR, x ROE (AVERAGE), %

slide-15
SLIDE 15

PRESENTATION REMIUM | MAY 9, 2018 15

140 13 49 19 26 49 17 65

20 40 60 80 100 120 140 160

Rental value Vacancy Property expenses Central admin Financing costs Value changes Taxes Net income NOI 79 (+10%) Prop Mgmnt 34 (+17%) (+0,8%)

INCOME BUILD-UP

FINANCIAL REPORT JAN - MAR 2018

slide-16
SLIDE 16

PRESENTATION REMIUM | MAY 9, 2018 16

PORTFOLIO BUILD UP - ACTUALS

FINANCIAL REPORT JAN - MAR 2018

Yield excl project properties, 12m avg Property value Project properties Yield, 12m avg 4826 5 380 5 537 5 817 5 752 5 880 6039 6494 6659 380 504 520 571 495 507 814 994 990 6,1% 5,9% 5,8% 5,7% 5,6% 5,4% 5,4% 5,3% 5,2% 6,5% 6,5% 6,3% 6,2% 6,1% 6,0% 6,0% 5,9% 6,0% 2,0% 3,0% 4,0% 5,0% 6,0% 7,0% 8,0% 9,0%

  • 1 000

2 000 3 000 4 000 5 000 6 000 7 000 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18

slide-17
SLIDE 17

PRESENTATION REMIUM | MAY 9, 2018 17

NOI Excess Ratio LTV (property level) LTV ROE Equity Ratio

KEY METRICS OVER TIME AND FINANCIAL RATIOS

ICR (right hand scale)

FINANCIAL REPORT JAN - MAR 2018

KEY FINANCIAL RATIOS JAN–MAR 2018 JAN–MAR 2017 Excess Ratio (NOI/Rental income), % 69% 68% ROE (12m average), % 18% 33%

  • Avrg. Interest fjxing, years

2,0 2,8

  • Avrg. Debt maturity, years

2,7 2,8 Equity Ratio, % 36% 36% LTV, % 56% 57% LTV (property level), % 47% 46% ICR, x 2,6 2,3

1,00 1,20 1,40 1,60 1,80 2,00 2,20 2,40 2,60 2,80 3,00 15,0% 25,0% 35,0% 45,0% 55,0% 65,0% 75,0% Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18
slide-18
SLIDE 18

PRESENTATION REMIUM | MAY 9, 2018 18

KEY METRICS

GROWING PROPERTY PORTFOLIO DEBT SERVICE CAPACITY SOLID BALANCE SHEET

LTM 2) NOI Equity ratio Equity

FINANCIAL REPORT JAN - MAR 2018

4 129 4 496 4 826 5 537 5 752 6 039 6 659

Q1 Q2 Q3 Q4 Q1 Q2 Q3Q4 Q1 Q2 Q3Q4 Q1 2015 2016 2017 2018

35 68 71 72 67 74 77 81 72 79 81 84 79 48 187 278 290 304 313 323

100 200 300 400

Q1 Q2Q3Q4 Q1 Q2Q3Q4 Q1 Q2 Q3Q4 Q1 2015 2016 2017 2018

1 186 1 307 1 516 1 899 2 099 2 242 2 464 27% 28% 30% 33% 35% 36% 36%

Q1 Q2Q3Q4Q1 Q2Q3Q4Q1 Q2 Q3Q4Q1 2015 2016 2017 2018

532 544 550 585 575 581 602 612 599 591 590 603 609

Q1 Q2Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2015 2016 2017 2018

2,0 2,5 2,3 2,2 2,2 2,2 2,2 2,3 2,3 2,4 2,5 2,5 2,6

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3Q4 Q1 2015 2016 2017 2018

68%69%69% 64%63% 60%59%58%58% 56%56%56%56%

Q1 Q2 Q3Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2015 2016 2017 2018

Lettable area, ’000 sq m Property value, mSEK Net operating income, mSEK Equity Interest coverage ratio 1) Loan to value

1) Profjt from property management before fjnancial expenses in relation to fjnancial expenses, 2) Last twelve months

slide-19
SLIDE 19

PRESENTATION REMIUM | MAY 9, 2018 19

SHARE VALUE AND KEY EQUITY RATIOS

Book equity

KEY EQUITY RATIOS JAN–MAR 2018 JAN–MAR 2017 Share price, SEK 79,0 68,0 Equity per share, SEK 89,2 86,9 EPRA NNNAV per share, SEK 93,2 90,4 Cashfmow per share, SEK 2,5 7,8 Market cap, MSEK 2 182 1 878 Other ratios Average number of employees during the period 41 39

Share price Book Equity/Share EPRA NNNAV/Share

FINANCIAL REPORT JAN - MAR 2018

1 489 1 516 1 808 1 899 2054 2099 2106 2242 2399 2464 50,00 55,00 57,50 72,25 68,50 65,50 68,50 69,75 68,00 79,00 51,56 52,62 66,35 70,19 75,25 76,69 77,64 83,69 90,39 93,12 20,02 40,02 60,02 80,02 100,02 200 700 1 200 1 700 2 200 2 700 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 68,75 53,92 54,90 65,47 74,36 76,00 76,25 81,18 86,86 89,21
slide-20
SLIDE 20

PRESENTATION REMIUM | MAY 9, 2018 20

DEBT FUNDING OVERVIEW

FINANCIAL REPORT JAN - MAR 2018

Senior debt, 80,4% Bond, 18,5% Seller notes, 1,1% Swedbank, 77,1% Danske Bank, 16,2% Sörmlands Sparbank, 6,3% Sparbanken i Enköping, 0,4%

500 1 000 1 500 2 000 2 500 2018 2019 2020 2021 2022 >2022

Total debt maturity (average debt maturity 2,7 years) Interest fjxing & Interest rate derivatives

(average interest maturity 2,0 years)

SENIOR DEBT

  • 3 085 MSEK -

DISTRIBUTION OF DEBT

  • 3 838 MSEK -
slide-21
SLIDE 21

PART 3 GROWTH CONTINUE

slide-22
SLIDE 22

PRESENTATION REMIUM | MAY 9, 2018 22

MALMÖ GÖTEBORG JÖNKÖPING LINKÖPING UPPSALA VÄSTERÅS ÖREBRO ESKILSTUNA SÖDERTÄLJE STOCKHOLM SÖDERTÄLJE ESKILSTUNA FLEN VÄSTERÅS ENKÖPING UPPSALA STOCKHOLM STORSTOCKHOLM

OUR PROPERTY PORTFOLIO IS LOCATED WHERE SWEDEN IS GROWING THE MOST

GROWTH CONTINUE

slide-23
SLIDE 23

PRESENTATION REMIUM | MAY 9, 2018 23

MALMÖ GÖTEBORG JÖNKÖPING LINKÖPING UPPSALA VÄSTERÅS ÖREBRO ESKILSTUNA SÖDERTÄLJE STOCKHOLM

WHERE IN STOCKHOLM REGION DO WE WANT TO GROW?

Existing portfolio Possible expansion

THE REGION HAS SIGNIFICANTLY HIGHER GROWTH THAN THE REST OF SWEDEN

GROWTH CONTINUE

slide-24
SLIDE 24

PRESENTATION REMIUM | MAY 9, 2018 24

Q&A

slide-25
SLIDE 25

PRESENTATION REMIUM | MAY 9, 2018 25

MAGNUS SUNDELL, CFO magnus.sundell@stendorren.se 08 - 518 331 02 FREDRIK BRODIN, CEO fredrik.brodin@stendorren.se 08 - 518 331 01

FOR FURTHER INFORMATION PLEASE CONTACT: CALENDAR:

Q2 report 20 Jul, 2018 Q3 report 15 Nov, 2018 Q4 report 22 Feb, 2019