Q3 Sustained growth in value and profit! Manage, refurbish and - - PowerPoint PPT Presentation

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Q3 – Sustained growth in value and profit! Manage, refurbish and develop residential properties

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HIGHLIGHTS Q3 2016

• Sustained pace in refurbishment despite of summer season, 289

apartments in Q3, and 1,173 for the last 12 month

• Heavy investments in existing properties amounting to SEK 686 million

during the first nine month of the year

• Reduced costs, increased rent levels and successful cash management

resulting in a 92 percent uplift in the income from property management

• Before tax profit of SEK 434m in Q3 and SEK 1,200m first nine months
• EPRA NAV up 7% in the quarter to 91.26 per share
• Blackstone* new largest owner

* Blackstone Real Estate Partners Europe IV and Blackstone Real Estate Partners VIII, through Vega Holdco S.à.r.l.

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STRONG GROWTH IN RENTAL INCOME AND NET OPERATING INCOME

240.0 308.8 332.8 121.6 164.2 189.9 20% 25% 30% 35% 40% 45% 50% 55% 60% 50 100 150 200 250 300 350 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2014 2015 2016 SEKm Rental income Net operating income Gross margin Gross margin - target

Rental income growth – 7.8% (YOY) Net operating income growth – 15.7% (YOY)

4 48.61 60.53 91.26 0% 5% 10% 15% 20% 25% 30% 35% 10 20 30 40 50 60 70 80 90 100 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2014 2015 2016 Equity ratio Equity (EPRA NAV) SEK per share Equity (EPRA NAV) per share Equity ratio Equity ratio - target

RAPID GROWTH: +51% (YOY) IN ADJUSTED EQUITY (EPRA/NAV) PER SHARE IN Q3 2016 – EQUITY RATIO OVER 30% TARGET

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STEADY GROWTH: EARNINGS CAPACITY +17% FOR COMPARABLE PORTFOLIO IN 2015

1,230.6 1,281.6 1,365.8 600.2 651.8 695.8 298.9 350.6 383.7 200 400 600 800 1,000 1,200 1,400 1,600 Sep 30 Jan 1 March 31 June 30 Sep 30 Sep 30 2015 2016 2016 SEKm Rental income Net operating income Income from property management

Current portfolio Comparable portfolio

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INCREASED REFURBISHMENT PACE: 1 173 LAST 12 MONTH

40 289 0% 2% 4% 6% 8% 10% 12% 50 100 150 200 250 300 350 400 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2015 2016 Refurbished apartments (no. Of) Refurbished apartments per quarter Refurbished apartments (total, %)

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REFURBISHMENTS DRIVING RAPID GROWTH IN RENTAL INCOME

100 102 104 106 108 110 112 114 116 Jan Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2014 2015 2016 Rent development, index 100 (%) Rent development public housing Rent development DCAR

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STEADY DEGEARING AND HIGHER ICR

1.6 2.5 3.8 0% 10% 20% 30% 40% 50% 60% 70% 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2014 2015 2016 LTV (%) ICR (x) ICR LTV LTV - target ICR – Interest Coverage Ratio LTV – Loan To Value

A RESULT OF INCREASED PORTFOLIO VALUE, LOWER FINANCING COSTS AND INCREASED OPERATING INCOME

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OVER 100% VALUE RETURN ON INVESTMENTS

165 491 217 686 1,343 444 1,798 657 1,823 4,065 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 FY2014 FY2015 2015-9M 2016-9M FY2014-2016-Q3 SEKm Investments in existing properties Changes in value of investment properties

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BLACKSTONE NEW LARGEST SHAREHOLDER

• Blackstone* currently owns 32% of the shares and 40% of the votes
• Controls 53% of the voting rights through agreement with Kvalitena AB

and Frasdale Int. BV

• Blackstone has submitted a bid for all shares at SEK 100 per share
• Blackstone is a global leader in real estate investing with over $100

billion in capital under management

• Unchanged business strategy for D. Carnegie & Co

*Blackstone Real Estate Partners Europe IV and Blackstone Real Estate Partners VIII, through Vega Holdco S.à.r.l.

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BRIGHT OUTLOOK FOR 2017

• New strong main shareholder
• Strong focus on growth

– New acquisitions – Continued high level of refurbishment – Development of building rights – Preparation for possible start of production of new residential buildings – Continued focus on co-op conversions after successful trial in Q2

• D. Carnegie & Co AB

Strandvägen 5A 114 51 Stockholm www.dcarnegie.se

THANK YOU!

CONTACT: ULF NILSSON, CEO, 08-121 317 25 ULF.NILSSON@DCARNEGIE.SE