Q4 – Highest refurbishment pace! Manage, refurbish and develop residential properties 1
HIGHLIGHTS Q4 AND FY 2016 • Highest refurbishment pace with 375 apartments in Q4, and 1,253 for the last 12 months • Extensive investments in existing properties amounting to SEK 353 million during the quarter and 1,039 million during the year • Reduced costs and increased rent levels resulting in a 8% increase in income from property management during Q4 and a 45% increase during 2016 • Before tax profit of SEK 872m in Q4 and SEK 2,072m in 2016 • Steady growth in earnings capacity of +24% for comparable portfolio in 2016 • EPRA NAV YoY increase of 39% to 101.96 per share 2
STRONG GROWTH IN RENTAL INCOME AND NET OPERATING INCOME Rental income growth + 4.6% (YoY) Net operating income growth + 15.2% (YoY) 350 60% 332 317 55% 300 282 50% 250 45% 200 SEKm 40% 154 150 133 35% 98 100 30% 50 25% 0 20% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2014 2015 2016 Rental income Net operating income Surplus ratio Surplus ratio - target 3
RAPID GROWTH: +39% (YOY) IN ADJUSTED EQUITY (EPRA/NAV) PER SHARE IN Q4 2016 – EQUITY RATIO OVER 30% TARGET 120 40% 102.0 35% 100 Equity (EPRA NAV) SEK per share 30% 80 73.5 25% Equity ratio 60 20% 52.0 15% 40 10% 20 5% 0 0% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2014 2015 2016 Equity (EPRA NAV) per share Equity ratio Equity ratio - target 4
STEADY GROWTH: EARNINGS CAPACITY +24% FOR COMPARABLE PORTFOLIO IN 2016 Current Comparable portfolio 1,600 portfolio 1,379.3 1,400 1,302.7 1,244.6 1,200 1,000 SEKm 800 733.8 688.3 607.6 600 395.8 366.1 400 295.5 200 0 1 jan 31 mars 30 juni 30 sept 1 jan 1 jan 2016 2017 2017 Revenue Net operating income Income from property management 5
HIGHEST REFURBISHMENT PACE: 1,253 LAST 12 MONTHS 400 14% 375 350 12% 295 300 10% 250 8% 200 6% 150 101 4% 100 2% 50 0 0% Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2015 2016 Refurbished apartments per quarter Refurbished apartments (total, %) 6
REFURBISHMENTS DRIVING RAPID GROWTH IN RENTAL INCOME 116 114 112 110 108 % 106 104 102 100 Jan Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2014 2015 2016 Rent development DCAR Rent development general increase 7
STEADY DEGEARING AND HIGHER ICR A RESULT OF INCREASED PORTFOLIO VALUE, LOWER FINANCING COSTS AND INCREASED OPERATING INCOME 3.0 70% 60% 2.5 50% 2.0 1.9 1.8 40% LTV (%) ICR (x) 1.5 30% 1.0 0.9 20% 0.5 10% 0.0 0% * Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2014 2015 2016 ICR LTV LTV - target ICR – Interest Coverage Ratio LTV – Loan To Value - Interest-bearing liabilities with security in properties in relation to the fair value of the properties at the end of the period 8 *Adjusted for received dividend
OVER 100% VALUE RETURN ON INVESTMENTS 6,000 5,219 5,000 4,000 SEKm 2,977 3,000 2,000 1,798 1,695 1,039 1,000 491 444 165 0 FY2014 FY2015 FY2016 FY2014-2016 Investments in existing properties Changes in value of investment properties 9
BRIGHT OUTLOOK FOR 2017 • Strong focus on growth – Focus on new acquisitions – Agreement to acquire 1,681 apartments to date in 2017 – Continued high level of refurbishment – First building right granted and continued focus on further development – Continued focus on co-op conversions after successful trial in Q2 10
THANK YOU! CONTACT: ULF NILSSON, CEO, 08-121 317 25 ULF.NILSSON@DCARNEGIE.SE D. Carnegie & Co AB Strandvägen 5A 114 51 Stockholm www.dcarnegie.se
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