Q4 Highest refurbishment pace! Manage, refurbish and develop - - PowerPoint PPT Presentation

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Q4 – Highest refurbishment pace! Manage, refurbish and develop residential properties

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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

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STRONG GROWTH IN RENTAL INCOME AND NET OPERATING INCOME

Rental income growth + 4.6% (YoY) Net operating income growth + 15.2% (YoY)

282 317 332 98 133 154 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 Q4 2014 2015 2016 SEKm Rental income Net operating income Surplus ratio Surplus ratio - target

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RAPID GROWTH: +39% (YOY) IN ADJUSTED EQUITY (EPRA/NAV) PER SHARE IN Q4 2016 – EQUITY RATIO OVER 30% TARGET

52.0 73.5 102.0 0% 5% 10% 15% 20% 25% 30% 35% 40% 20 40 60 80 100 120 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2014 2015 2016 Equity ratio Equity (EPRA NAV) SEK per share Equity (EPRA NAV) per share Equity ratio Equity ratio - target

5 1,244.6 1,302.7 1,379.3 607.6 688.3 733.8 295.5 366.1 395.8 200 400 600 800 1,000 1,200 1,400 1,600 1 jan 31 mars 30 juni 30 sept 1 jan 1 jan 2016 2017 2017 SEKm Revenue Net operating income Income from property management

STEADY GROWTH: EARNINGS CAPACITY +24% FOR COMPARABLE PORTFOLIO IN 2016

Current portfolio Comparable portfolio

6 101 295 375 0% 2% 4% 6% 8% 10% 12% 14% 50 100 150 200 250 300 350 400 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2015 2016 Refurbished apartments per quarter Refurbished apartments (total, %)

HIGHEST REFURBISHMENT PACE: 1,253 LAST 12 MONTHS

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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 Q4 2014 2015 2016 % Rent development DCAR Rent development general increase

8 0.9 1.8 1.9 0% 10% 20% 30% 40% 50% 60% 70% 0.0 0.5 1.0 1.5 2.0 2.5 3.0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2014 2015 2016 LTV (%) ICR (x) ICR LTV LTV - target

STEADY DEGEARING AND HIGHER ICR

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 *Adjusted for received dividend

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 1,039 1,695 444 1,798 2,977 5,219 1,000 2,000 3,000 4,000 5,000 6,000 FY2014 FY2015 FY2016 FY2014-2016 SEKm Investments in existing properties Changes in value of investment properties

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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

• 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