The leading property company in logistics. Q2 2020 Joining - PowerPoint PPT Presentation

The leading property company in logistics.

Q2 2020 Joining presentation Benny Thögersen CEO, Sofie Bennsten CFO, Anna Wallander Sustainability Manager, Peter Andersson Head of Treasury 2

Contents 1. Highlights 2. Results and balance overview 3. Operational review 4. Capitalization 5. Capital deployment 5. Focus on sustainability 6. Market and outlook Q&A 3

Highlights Resilient second quarter on the back of a stabalized market sentiment YTD Profit from property management 1 of SEK 358,5 million, up 13 percent YoY. • Total operations • EPRA NAV per share of 208, up 14 percent YoY. • Solid letting ratio at 96 percent with WALE of close to 5 years. • Leased SEK 22 million worth of new leases, net of SEK 19 million. • LTV at 55,7 percent down 30bps YoY and cost of debt of 2.4 percent • EPRA NYI of 5.9 percent down 20bps YoY. Intensive second quarter with several projects being finalized Development • Market activity indicates a close to pre-covid state • Piece of promising land in Jönköping was aquired waiting for development plan to come in place • High pace on certifying buildings and installing photovoltaic cells Credit markets signaled improved sentiment • Transactions in the quarter indicates high demand from investors Markets • Credit spreds was getting tighter amid hopes for a quicker economic recovery • Online spending is accelerating further pushing supply chains closer to end consumers 4 1 Profit from property management comprises profit adjusted for value changes (realized and unrealized) related to properties, derivative mark to market and other non-cash items.

Covid-19 The impact from the Coronavirus has had limited effect on Catena so far. Still, the set-up program prepared for in the first quarter to cope with the situation is still in progress and of critical importance. So far: Limited impact on first and second quarter outcome with 7 million of credit loss on receivables. • In the second quarter market sentiment have shifted back and forth about the speed of • economic recovery. The financial position of Catena has proved strong enough to keep funding activities stable. •

Results and balance overview 2020, Q2 6

Income statement – Period (YTD) 661 131 Surplus 9,51 2020 Q2: SEK M 8,58 kr/sqm kr/sqm ratio per per share 80% share 800 622,3 700 + 10% 600 + 13% 76,7 500 122 400 17 4,4 23,9 300 120,4 500,3 87,8 200 358,5 323,5 100 0 Rental Property NOI Central Other Financial Income Value Value Taxes Net income income expenses admin net from changes changes property mgmnt. property derivatives 2019 Q2: SEK M 654 145 Surplus 8,43 13,46 kr/sqm kr/sqm ratio per share per share 78% 395 800 700 585 600 70,4 500 135 400 129,9 16 4,7 300 116,5 200 455,1 317,9 507,5 100 0 Rental Property NOI Central Other Financial Income Value Value Taxes Net income income expenses admin net from changes changes property mgmnt. property derivatives 7

Statement of financial position SEK M 2020 Q2 2019 Q2 Total assets Investment properties 17,222.5 15,570.4 503.0 503.0 Goodwill 599.5 736.3 Other assets 472.7 266.9 Opening cash and cash equivalents 18,797.7 17,076.6 Total assets Total shareholders’ equity and liabilities 6,395.8 NAV 208 SEK/share 5,606.1 NAV 182 SEK/share Equity 9,591.5 2.4%, Cost of debt 8,719.9 2,5%, Cost of debt Property loan 2,810.4 2,750.6 Other liabilities 18,797.7 17,076.6 Total shareholders’ equity and liabilities 8

Operational review 9

Rental growth, like-for-like Msek 700,0 622,3 7,0 11,0 585,0 10,7 14,0 600,0 2020 Q2 5,5 500,0 Like-for-like 1.9 % 400,0 Project developments 2.4 % 300,0 Acquisitions 1.8 % Divestments -0,9 % 200,0 One-off effects 1,2 % 100,0 Total 6,4 % 0,0 Income AcquisitionsDivestments Projects like-for-like Oneoff Income 2019Q2 effect 2020Q2 10

High share of income retained Msek Profit 1 400 surplus 58 % 1 200 1 000 800 54 % 600 400 200 0 2015 2016 2017 2018 Q2 2019 2019 Q2 2020 Rental income Profit from property management 1 Profit from property management comprises profit adjusted for value changes (realized and unrealized) related to properties, derivatives marked to market. 11

Well reputed and diversified customer base Logistics/transport Home/construction Food and beverage Healthcare /recycling /packaging >9% >40% >4% >23% 12

Property value and yield EPRA NIY 5.9 % Msek EPRA NIY 20 000 6.1 % 18 000 16 000 14 000 12 000 10 000 8 000 6 000 4 000 2 000 0 2015 2016 2017 2018 Q2 2019 2019 Q2 2020 Assets IFRS property value 13

(Numbers indicate rental value per sqm) Rental market Region Stockholm 729 kr/sqm Stockholm 942 kr/sqm Örebro Msek 1 400 720 582 kr/sqm 1 200 700 1 000 680 Letting 800 660 Region Gothenburg ratio 600 753 kr/sqm 640 96 % 400 620 200 0 600 Region Jönköping 2015 2016 2017 2018 Q2 2019 Q2 569 kr/sqm 2019 2020 Region Helsingborg Rental value Rental value per sqm 592 kr/sqm Region Malmö 896 kr/sqm 14

Leasing activity and contract maturity Net rental by contractual value Maturity - Contractual Maturity - Contractual annual rent annual rent 50,0 Msek 40,0 600 600 30,0 38,0% 38,0% WALE 500 20,0 500 10,0 400 5 y 400 0,0 300 300 -10,0 14,9% 14,5% 11,2% 14,9% 200 14,5% 10,7% 9,9% 200 11,2% -20,0 10,7% 9,9% 100 100 -30,0 0,7% 0,7% 0 -40,0 0 2020 2021 2022 2023 2024 2025 2026+ 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2021 2022 2023 2024 2025 2026+ Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Moved in Moved out Net 15

Capitalization 16

Capitalization LTV & Cost of debt Capital structure 33,2% 32,8% 35,6% 34,0% 100% 4,0% 20 000 18 000 3,5% 80% 16 000 32,3% 3,0% 14 000 31,6% 2,5% 60% 12 000 2,0% 10 000 35,7% 40% 8 000 1,5% 6 000 1,0% 20% 4 000 0,5% 2 000 0% 0,0% 0 2015 2016 2017 2018 Q2 2019 Q2 2015 2016 2017 2018 Q2 2019 Q2 2019 2020 2019 2020 LTV, % (left) Avg. cost of debt Interestbearing debt Other liabilities Equity 17

Funding structure Funding source Year Debt maturity loans Interest maturity incl. derivatives msek Share% Interest rate Msek Share% Interest rate 1% including including 3% Margin% Margin% 11% 0-1 y 2,169.5 23 1.5 3,455.5 36 1.4 1-2 y 1,853.0 19 1.5 1,252.2 13 4.1 2-3 y 2,913.5 30 1.5 258.0 3 1.3 3-4 y 2,495.7 26 1.4 500.0 5 3.2 85% 4-5 y - - - 1,220.8 13 3.0 Bankloans 5- y 159.8 2 0.8 2,904.9 30 2.7 Bonds 9,591.5 100 1.5 9,591.5 100 2.4 Commercial papers Debt Interest Dansish mortage bonds maturity maturity 2.4 y 3.4 y 18

Capital deployment 19

Capital deployment YTD Asset acquisitions Acquisitions/Divestments 307 (MSEK) Transactions Property Transfer Letteble Region Property area (sqm) value (MSEK) Lokesvej 18 Q1 2020 4,176 Malmö (DK) 96.5 Divestments - Kometvej 15 Q1 2020 4,484 Malmö (DK) 79.7 Magasinet 3 Q1 2020 21,240 Stockholm 130.0 Capex Development capex 571 (MSEK) 20

Development projects in progress Rosersberg 11:81, Sthlm Speed logistics 990 Total investment: 65 MSEK Book value, MSEK Finalized: Q3 2020 Plantehuset 3, Helsingborg Nowaste Total investment: 132 MSEK Remaining investments, > 530 Finalized: Q3 2020 MSEK Norra varalöv 31:11, Ängelholm Boozt Total investment: 193 MSEK Plantehuset 3, Helsingborg Finalized: Q4 2020 PostNord Total investment: 250 MSEK Sunnanå 12:52, Malmö Finalized: Q3 2020 DHL Total investment: 150 MSEK 110 Adds m(2)’ Finalized: Q4 2020 Sunnanå 12:52, Malmö Multi Tenant distrubution Total investment: 358 MSEK Broby 57:1 & 4:32, Åstorp Finalized: Q4 2020 Seafrigo Nordic - Distributioncenter Several tenants in place Total investment: 147 MSEK Finalized: Q3 2021 21 (Boxes represents a selection of ongoing projects)

Focus on sustainability 22

Key sustainability figures, Q2 2020 Energy Energy consumption per sqm kWh/sqm Jan-may Jan- may Diff, % Reduction of energy use per sq m with six percent compared to same • 2020 2019 period last year Electricity 29 32 -10% Heating 22 23 -1% 96 percent of Catena’s energy is fossil free • Total energy 51 54 -6% intensity Nine photovoltaic plants installed and another eight in progress. • Estimated production of all plants is approx. 5 000 MWh/year GHG emissions (energy related) Source Jan-may Jan-may Diff, % Greenhouse Gas 2020, ton 2019, CO2e ton CO2e Reduced GHG emissions from energy related activities with 15 percent • Electricity 1 312 1 345 -2% Gas and oil 97 635 -85% compared to same period last year District heating 2 132 2 167 -2% Total 3 541 4 146 -15% Environmental Building Certification Miljöbyggnad Silver One percent of total area certified with Miljöbyggnad 3.0 Silver. • Certified Ongoing Number of buildings 2 10 Eight percent of total area under process of being certified with • 20 250 155 841 Area, sqm Miljöbyggnad 3.0 Silver and Miljöbyggnad iDrift Silver. % of total area 1% 8% 23