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

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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

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Resilient second quarter on the back of a stabalized market sentiment

• YTD Profit from property management1 of SEK 358,5 million, up 13 percent YoY.
• 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

• 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
• Credit spreds was getting tighter amid hopes for a quicker economic recovery
• Online spending is accelerating further pushing supply chains closer to end consumers

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.

Highlights

4 Total operations Development Markets

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

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622,3 500,3 358,5 323,5 122 17 4,4 120,4 76,7 23,9 87,8

100 200 300 400 500 600 700 800

Rental income Property expenses NOI Central admin Other Financial net Income from property mgmnt. Value changes property Value changes derivatives Taxes Net income 9,51 per share 8,58 per share 661 kr/sqm 131 kr/sqm Surplus ratio 80% 585 455,1 317,9 507,5 129,9 16 4,7 116,5 395 70,4 135

100 200 300 400 500 600 700 800

Rental income Property expenses NOI Central admin Other Financial net Income from property mgmnt. Value changes property Value changes derivatives Taxes Net income 8,43 per share 13,46 per share 654 kr/sqm 145 kr/sqm Surplus ratio 78%

Income statement – Period (YTD)

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+13% +10%

2020 Q2: SEK M 2019 Q2: SEK M

Statement of financial position

SEK M 2020 Q2 2019 Q2

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

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Operational review

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Rental growth, like-for-like

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2020 Q2 Like-for-like 1.9 % Project developments 2.4 % Acquisitions 1.8 % Divestments

• 0,9 %

One-off effects 1,2 % Total 6,4 %

585,0 10,7 5,5 14,0 11,0 7,0 622,3 0,0 100,0 200,0 300,0 400,0 500,0 600,0 700,0 Income 2019Q2 AcquisitionsDivestments Projects like-for-like Oneoff effect Income 2020Q2 Msek

200 400 600 800 1 000 1 200 1 400 2015 2016 2017 2018 Q2 2019 2019 Q2 2020 Msek Rental income Profit from property management

High share of income retained

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54 %

1 Profit from property management comprises profit adjusted for value changes (realized and unrealized) related to properties, derivatives

marked to market.

Profit surplus 58 %

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Logistics/transport /recycling Food and beverage Home/construction /packaging Healthcare

>4% >9% >23% >40%

Well reputed and diversified customer base

Property value and yield

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2 000 4 000 6 000 8 000 10 000 12 000 14 000 16 000 18 000 20 000 2015 2016 2017 2018 Q2 2019 2019 Q2 2020 Msek Assets IFRS property value

EPRA NIY 5.9 % EPRA NIY 6.1 %

(Numbers indicate rental value per sqm)

Region Gothenburg 753 kr/sqm Region Malmö 896 kr/sqm Region Helsingborg 592 kr/sqm Region Stockholm 729 kr/sqm Stockholm 942 kr/sqm Örebro 582 kr/sqm Region Jönköping 569 kr/sqm

14 Letting ratio

96 %

Rental market

600 620 640 660 680 700 720 200 400 600 800 1 000 1 200 1 400 2015 2016 2017 2018 Q2 2019 2019 Q2 2020 Msek Rental value Rental value per sqm

Leasing activity and contract maturity

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WALE 5 y

0,7% 14,5% 11,2% 14,9% 10,7% 9,9% 38,0% 100 200 300 400 500 600 2020 2021 2022 2023 2024 2025 2026+

Maturity - Contractual annual rent

• 40,0
• 30,0
• 20,0
• 10,0

0,0 10,0 20,0 30,0 40,0 50,0 2018 Q1 2018 Q2 2018 Q3 2018 Q4 2019 Q1 2019 Q2 2019 Q3 2019 Q4 2020 Q1 2020 Q2

Net rental by contractual value

Moved in Moved out Net 0,7% 14,5% 11,2% 14,9% 10,7% 9,9% 38,0% 100 200 300 400 500 600 2020 2021 2022 2023 2024 2025 2026+ Msek

Maturity - Contractual annual rent

Capitalization

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Capitalization

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0,0% 0,5% 1,0% 1,5% 2,0% 2,5% 3,0% 3,5% 4,0% 0% 20% 40% 60% 80% 100% 2015 2016 2017 2018 Q2 2019 2019 Q2 2020

LTV & Cost of debt

LTV, % (left)

• Avg. cost of debt

35,7% 31,6% 32,3% 33,2% 32,8% 35,6% 34,0% 2 000 4 000 6 000 8 000 10 000 12 000 14 000 16 000 18 000 20 000 2015 2016 2017 2018 Q2 2019 2019 Q2 2020

Capital structure

Interestbearing debt Other liabilities Equity

Year Debt maturity loans Interest maturity incl. derivatives msek Share% Interest rate including Margin% Msek Share% Interest rate including Margin% 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 4-5 y

• 1,220.8

13 3.0 5- y 159.8 2 0.8 2,904.9 30 2.7 9,591.5 100 1.5 9,591.5 100 2.4

Funding structure

18 Debt maturity 2.4 y Interest maturity 3.4 y

85% 11% 1% 3% Funding source

Bankloans Bonds Commercial papers Dansish mortage bonds

Capital deployment

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Asset acquisitions (MSEK)

Capital deployment YTD

Acquisitions/Divestments

Property Transfer Letteble area (sqm) Region Property value (MSEK) Lokesvej 18 Q1 2020 4,176 Malmö (DK) 96.5 Kometvej 15 Q1 2020 4,484 Malmö (DK) 79.7 Magasinet 3 Q1 2020 21,240 Stockholm 130.0

307

Development capex (MSEK)

571

Divestments

• Transactions

Capex 20

Book value, MSEK Rosersberg 11:81, Sthlm Speed logistics Total investment: 65 MSEK Finalized: Q3 2020 21

990

(Boxes represents a selection of ongoing projects) Sunnanå 12:52, Malmö DHL Total investment: 150 MSEK Finalized: Q4 2020 Plantehuset 3, Helsingborg Nowaste Total investment: 132 MSEK Finalized: Q3 2020 Norra varalöv 31:11, Ängelholm Boozt Total investment: 193 MSEK Finalized: Q4 2020

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>530

Remaining investments, MSEK Adds m(2)’ Plantehuset 3, Helsingborg PostNord Total investment: 250 MSEK Finalized: Q3 2020 Sunnanå 12:52, Malmö Multi Tenant distrubution Total investment: 358 MSEK Finalized: Q4 2020 Several tenants in place

Development projects in progress

Broby 57:1 & 4:32, Åstorp Seafrigo Nordic - Distributioncenter Total investment: 147 MSEK Finalized: Q3 2021

Focus on sustainability

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Key sustainability figures, Q2 2020

Energy

• Reduction of energy use per sq m with six percent compared to same

period last year

• 96 percent of Catena’s energy is fossil free
• Nine photovoltaic plants installed and another eight in progress.

Estimated production of all plants is approx. 5 000 MWh/year

Energy consumption per sqm

kWh/sqm Jan-may 2020 Jan- may 2019 Diff, % Electricity 29 32

• 10%

Heating 22 23

• 1%

Total energy intensity 51 54

• 6%

GHG emissions (energy related)

Source Jan-may 2020, ton CO2e Jan-may 2019, ton CO2e Diff, % Electricity 1 312 1 345

• 2%

Gas and oil 97 635

• 85%

District heating 2 132 2 167

• 2%

Total 3 541 4 146

• 15%

Greenhouse Gas

• Reduced GHG emissions from energy related activities with 15 percent

compared to same period last year

Environmental Building Certification

• One percent of total area certified with Miljöbyggnad 3.0 Silver.
• Eight percent of total area under process of being certified with

Miljöbyggnad 3.0 Silver and Miljöbyggnad iDrift Silver.

Miljöbyggnad Silver

Certified Ongoing Number of buildings 2 10 Area, sqm 20 250 155 841 % of total area 1% 8%

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Miljöbyggnad / Environmental Building

Miljöbyggnad 3.0/3.1

• One of Sweden’s most recognized environmental

building certification standards

• A tool to create the best possible conditions for

designing and constructing new buildings that are sustainable over time

• Focus areas: Energy, Indoor Environment,

Material

• Three levels: Bronze, Silver, Gold

 2 new constructions are certified and Catena is currently working on certififying two new constructions and seven existing buildings

Miljöbyggnad iDrift

• New environmental certification standard for

buildings older than 3 years

• Released in June 2020
• A tool to improve conditions and environmental

performance of existing buildings through their

• peration and management
• Focus Areas: Indoor Environment, Health, Climate

Impact, Resources, State

• Three levels: Bronze, Silver, Gold

 Catena is currently working on certification for 1 existing building

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Market and outlook

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”During April e-commerce grew by 44 percent in comparison to last year”

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PostNord E-barometern Thomas Karlsson, CEO of Element Logic Sweden commenting on Boozt’s expansion of the worlds largest AutoStore in Ängelholm

”The worlds largest Autostore installation is still the world´s largest. E-commerce continues to grow at a rapid rate. The flexibility, scalability and efficiency that characterize Autostore will give Boozt a continued superior competitive advantage ahead”. ”Our investment to establish a global smart logistics network, including international shipping routes and warehousing facilities, will provide businesses with greater operational efficiency, cost savings, transparency and accuracy in their supply chain management”

Cainiao President Wan Lin commenting on Cainiao doubling the floor space of its

• verseas warehouses to 2m sqm (Alizila, Alibaba group)

Katrineholm Postnord Total investment: 36 MSEK Yield: 6,5% Total sq m: 2,000 Contract duration: 10 years

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Acquisition, Jönköping Acquisition of land (April -20) Land (sq m): 190,000 Building rights (sq m): 90,000 Development plan is ongoing

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Investment Åstorp Acqusition/Development project (May -20) Distribution facility Total investment: 147 MSEK Net yield: 6,1% Total lettable sqm: 10,800 Contract maturity: 12 years

Landvetter Härryda Sqm land: 210’ Investment land: Allocation lot Pending zoning plan Sockret (Malmö harbour) Malmö Sqm land: 40’ Investment land: 32 MSEK Zoning plan activated (The presented landlots represents a selection of our outstanding landbank) Magneten 6 Umeå Sqm land: 42’ Investment land: 37 MSEK Zoning plan activated Land-bank tsqm

5,000

Potential lettable area tsqm

1,750

Potential investment MSEK

14,000

Stockholm Syd Nykvarn/Södertälje Sqm land: 450’ Investment land: 315 MSEK Pending zoning plan Örebro (JV, 34%) Törsjö Sqm land: 920’ Investment land: 315 MSEK Pending zoning plan E-City Ängelholm Sqm land: 850’ Investment land: 43 MSEK Pending zoning plan 30 Logistics position Järna Södertälje Sqm land: 1,000’ Investment land: 100 MSEK Pending zoning plan Logistics position Sunnanå Malmö Sqm land: 110’ Investment land: 32 MSEK Pending zoning plan

The landbank Includes JV agreements, and various conditional options and contracts.

Land in Jönköping Jönköping Sqm land: 190’ Investment land: Not announced

Potential, future development projects

Q&A

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Benny Thögersen CEO, Sofie Bennsten CFO, Anna Wallander Sustainability Manager, Peter Andersson Head of Treasury

The leading property company in logistics.