Bewi Invest Asa · OSL:BINT
Bewi Invest Asa — KMC Properties — Q3 2021 Earnings Presentation
22 slides from Bewi Invest Asa's earnings presentation, Nov 18, 2021
Slide 1: KMC Properties ASA Q3 2021
KMC Properties ASA Q3 2021 18 November 2021
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: Third quarter 2021
Third quarter 2021 5
Slide 6: KMC Properties at glance
KMC Properties at glance We are KMC Properties … we deliver accretive growth …and have strong growth ambitions Committed NOKm pipeline ’22-24 NOKm M&A 5 000 (Contemplated) 8 000 Greenfield NOK 8bn Net yield Portfolio value 4 500 0 830 7 000 projects 370 4 000 355 NOK ~3.7bn 3 500 95 120 6 000 3 090
Slide 7: Solid customer base of market leading companies with long track records
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 Key customers ▪ Listed at the Oslo Børs ▪ Founded in 1980 by the Bekken family ▪ Leading European provider of packaging, c
Slide 8: Highlights for the third quarter
Highlights for the third quarter Key events Key figures ▪ Acquisition of industrial property with long-term lease at Mongstad for NOK 285 million NOK million Q3 2021 9M 2021 ▪ Entered a conditional long-term lease agreement with BEWI for packaging hub at Jøsnøya Gross rental income 57.7 164.5 ▪ Agre
Slide 9: 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 Russia 4% 2% 6.3% 6.1% 6.2% Denmark 10% 3 705 Sweden 10% NOK 3,705 million 2) 3 307 Holland 11% 3 094 63% Norway Q1 2021 Q2 2021 Q3 2021 NOI yield 9 1) All
Slide 10: Ambitious growth strategy for portfolio
Ambitious growth strategy for portfolio Investments in expansion projects for existing clients Acquisitions Contract renewal Investments in new facilities for and investments in new and existing clients current portfolio Acquisitions in collaboration with Greenfield current and new tenants, as well
Slide 11: Selected projects
Selected projects Est. total project Expected Gross yield / cost / value of Location completion Yield-on-cost1 Tenant property (NOKm) Expansion projects (Capex) Completed and ongoing projects 2021/2022 ~7.5% BEWI/Insula 120 Greenfield projects Fish box facility Senja Senja, Norway Q4 2021 ~7.5% BEWI
Slide 12: Financials
Financials 12
Slide 13: Key reported P&L metrics
Key reported P&L metrics P&L (NOK million) Comments ■ Rental income increased by 7.4% from Q2 to Q3, Q3 2021 Q2 2021 2020 mainly explained by income from new investments Gross rental income 57.7 53.7 51.8 ■ Transaction costs of NOK 2.0 million in Q3, in Direct property related expenses -2.1 -2.0 -2.
Slide 14: Development in adjusted annualised run-rate
Development in adjusted annualised run-rate Annualised run-rate (NOK million) Comments ■ Minor increase since annual run-rate reported as Q3 2021 Q2 2021 Q1 2021 per Q2 on 25 August, since no significant additional agreements Gross rental income 247.0 246.3 212.8 ■ Q3 2021 is based on final agreemen
Slide 15: Current run-rate
Current run-rate Run-rate bridge from GRI to IFPM Comments NOK million ■ Property cost at c. 4% of GRI and expected to remain stable due to the nature of the business focusing on bear house contracts 247 11 236 26 ■ SG&A related to overhead costs of running the operations including salaries and admi
Slide 16: Run-rate figures: Key metrics
Run-rate figures: Key metrics Run-rate bridge from GRI to IFPM Comments NOK million ■ Additional rental income comes from Capex 247.0 projects completed in Q4 2021 1.7 2,4 61.8 57.7 Run-rate Annualised run-rate Q3 2021 reported Corrections Additional rental Rental income rental income previous perio
Slide 17: Existing contracts provide solid cash flow
Existing contracts provide solid cash flow Contractual gross rental income for the period 2021-20231 less estimated interests expenses2 Comments NOK million ▪ Contracts with solid tenants, with COVID-19 resilient business models ▪ Low OPEX and SG&A expenses due to triple net bare-house lease contrac
Slide 18: Balance sheet at Q3 2021
Balance sheet at Q3 2021 Balance sheet build-up Comments NOK million Other Current ■ Portfolio valued by Cushman & Wakefield quarterly assets liabilities 93 63 ■ In Q3 2021, value of property portfolio increased by Cash and NOK 398 million to a total value of NOK 3,705 million cash 276 equivalents ■
Slide 19: Interest bearing debt
Interest bearing debt Financing activity in the quarter Source of funds ▪ Cleaned down the revolving credit facility in Q3 2021 ▪ New bank term loan facility of NOK 325m at 3m NIBOR + 250bps 15% 0% Maturity profile and composition of interest-bearing debt 85% All amounts in NOK million 0-1 yrs 1-2 y
Slide 20: Outlook and summary
Outlook and summary 20
Slide 21: KMC Properties at glance
KMC Properties at glance We are KMC Properties … we deliver accretive growth …and have strong growth ambitions Committed NOKm pipeline ’22-24 NOKm M&A 5 000 (Contemplated) 8 000 Greenfield NOK 8bn Net yield Portfolio value 4 500 0 830 7 000 projects 370 4 000 355 NOK ~3.7bn 3 500 95 120 6 000 3 090
Slide 22: Q&A
Q&A 22