Slide 1: KMC Properties ASA Q2 2022
KMC Properties ASA Q2 2022 16 August 2022
Slide 2: The preferred partner for logistics and industrial properties
The preferred partner for logistics and industrial properties
Slide 3: Today's presenters
Todays’ presenters [Photo] [Photo] Liv Malvik Kristoffer Holmen CEO CFO 3
Slide 4: Disclaimer
Disclaimer This presentation, prepared by KMC Properties ASA (the "Company"), may contain statements about future events and expectations that are forward-looking statements. Any statement in this presentation that is not a statement of historical fact including, without limitation, those regarding
Slide 5: Second quarter 2022
Second quarter 2022 5
Slide 6: KMC Properties at glance
KMC Properties at glance We are KMC Properties … we deliver accretive growth 2 …and have strong growth ambitions 2 NOKm NOKm 6 000 1 365 9 000 Committed investments 8 000 5 500 Completed and Completed Net yield Portfolio value 5 000 committed M&A 8 000 Additional growth CapEx NOK ~4.1bn 1 4 500 48 1
Slide 7: Solid customer base of market leading companies
Solid customer base of market leading companies with long track records and exposure to an attractive industry Company overview Key customers / brands % of net operating income1 ▪ Listed at the Oslo Børs, majority-owned by the Bekken family, the founder of the company in 1980 ▪ Annual revenues of EU
Slide 8: Highlights for the second quarter
Highlights for the second quarter Key events for the quarter Key figures ▪ Agreement with BEWI for a transformative acquisition of a property portfolio NOK million Q222 Q221 1H22 1H21 consisting of up to 24 properties and a land plot for approximately NOK 2 billion Gross rental income 64.7 49.0 127.
Slide 9: BEWI property portfolio: Step-change acquisition for KMC Properties
BEWI property portfolio: Step-change acquisition for KMC Properties Sound strategic rationale Key metrics (for total portfolio) High-quality ✓ High-quality property portfolio of 24 industrial facilities Rental income: NOK c.126m asset (and one land plot) strategically located BTA: 245k ✓ Significant
Slide 10: Acquisitions: Delivering on growth strategy with three single assets
Acquisitions: Delivering on growth strategy by acquiring three single assets with accretive project economics Undisclosed industrial property INWIDO – Rogalandsvej 3 INWIDO – Fabriksvej 3 and 4 The tenant delivers a wide range of products and services to the horeca The property is leased to KPK Døre
Slide 11: Executing on growth strategy
Executing on growth strategy Company strategy and growth targets Growth initiatives in 2022 Completion Value Investments Type Tenant Yield WAULT Country (estimated) (NOKm)1) in 2022 CAPEX BEWI/ Insula 2022 48 48 7.5% 11.0 Contract renewal Greenfield Oppdal Spekemat Q3 2022 85 55 7.5% 15.0 Acquisitio
Slide 12: New platform set for accelerated value creation
New platform set for accelerated value creation Significantly larger base to grow from Maintaining portfolio gross yield Key KPIs Gross asset value development (NOKm) Gross yield development (%) 76 Properties 7 434 6,6% 6,7% 6,6% 5 434 701k 4 129 GLA (sqm) NOK 476m Run rate NOI KMCP After regular Af
Slide 13: Financials
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Slide 14: Property value and yield
Property value and yield Gross asset value and NOI yield development over time Total appraisal value and split per country1 NOK million Finland Denmark 6.1% 6.2% 6.4% 6.4% 6.4% 1% 9% Holland 4 002 4 028 4 129 11% 3 705 3 307 NOK 4,129 million 2) Sweden 11% 68% Norway Q2 2021 Q3 2021 Q4 2021 Q1 2022
Slide 15: Key reported P&L metrics
Key reported P&L metrics P&L (NOK million) Comments ■ Rental income and costs in Russia is not included Q2 2022 Q2 2021 H1 2022 H1 2021 2021 in the figures. Gross rental income 64.7 49.0 127.4 97.2 205,0 ■ Rental income increased by 32.0% from Q2 2021 to Q2 2022, mainly explained by income from new
Slide 16: Development in adjusted annualised run-rate
Development in adjusted annualised run-rate Annualised run-rate (NOK million) Comments Q2 Q1 Q4 Q3 Q2 Q1 ■ Q2 2022 is based on final agreements as of 30 2022 2022 2021 2021 2021 2021 June 2022 and does not include income and costs from the Moscow property. The figures Gross rental income 268.4 258.9
Slide 17: Current run-rate
Current run-rate Run-rate bridge from GRI to IFPM Comments ■ Property cost at NOK 4.1 million after 268,4 reclassification of costs in Russia (c. 1.5% of 4,1 264,3 GRI). Expected to remain low due to mainly triple 33,9 net bear house contracts in the portfolio. 230,4 117,4 ■ SG&A related to overhead
Slide 18: Run-rate figures: Key metrics
Run-rate figures: Key metrics Run-rate bridge from GRI to IFPM Comments ■ Additional rental income comes from new capex 268,4 investments. 2,4 67,1 64,7 Q2 2022 reported Additional rental Quarterly run-rate Annualised run-rate rental income income from new rental income investments 18
Slide 19: Existing contracts provide solid cash flow
Existing contracts provide solid cash flow Contractual gross rental income for the period 2022-20231 less estimated interests expenses2 Comments NOK million ▪ Long-term lease agreements with solid counterparties ▪ 95% of rental income is 100% CPI adjusted, 1% of rental income is 80% CPI adjusted, an
Slide 20: Balance sheet at 30.06.2022
Balance sheet at 30.06.2022 Balance sheet build-up Comments ■ Portfolio valued by Cushman & Wakefield quarterly Other Current assets liabilities 85,1 ■ In Q2 2022, value of property portfolio increased by 334,0 NOK 101.2 million to a total value of NOK 4 129.3 million Cash and cash 136,3 equivalents
Slide 21: Interest bearing debt
Interest bearing debt Financing activity in the quarter Source of funds ▪ New construction loans of NOK 28.6 million at 3m NIBOR + 300bps ▪ No utilization of the revolving credit facility in Q2 2022 19% 0% 1% Maturity profile and composition of interest-bearing debt 81% All amounts in NOK million 0-
Slide 22: Outlook and summary
22 = Outlook and summary
Slide 23: KMC Properties at glance
KMC Properties at glance We are KMC Properties … we deliver accretive growth 2 …and have strong growth ambitions 2 NOKm NOKm 6 000 1 365 9 000 Committed investments 8 000 5 500 Completed and Completed Net yield Portfolio value 5 000 committed M&A 8 000 Additional growth CapEx NOK ~4.1bn 1 4 500 48 1
Slide 24: Q&A
Q&A 24