Catena Ab · OMXSTO:CATE
Catena Ab — Q2 2021 Earnings Presentation
40 slides from Catena Ab's earnings presentation, 2021
Slide 1: The leading property company in logistics
The leading property company in logistics.
Slide 2: Q2 2021
Q2 2021 Jörgen Eriksson CEO, Sofie Bennsten CFO 2
Slide 3: Contents
Contents 1. Highlights 5. Capital deployment 2. Performance 6. Sustainability 3. Operational review 7. Market insights and ongoing 4. Balance sheet and debt 8. Q&A management 3
Slide 4: Development/Highlights
Highlights Strong second quarter performance • Rental income increased by 8 percent to SEK 672.8 million YoY. Total operations • YTD Profit from property management1 of SEK 399.2 million, up 11 percent YoY. • EPRA NRV per share of 278 up 34 percent YoY. • Earnings per share of 27.87 SEK up from 8.58
Slide 5: Covid-19
Covid-19 As economies are starting to reopen coinciding with ongoing vaccination programs confidence among consumers is increasing. The impact from the Coronavirus has had limited direct impact on Catena but uncertainty pertaining to the consequences of the reopening of societies prevails. The set-u
Slide 6: Performance
Performance CATENA
Slide 7: A history of profitable growth
A history of profitable growth Profit from property Earnings per share Dividend per share management per share 20 50 8 3,5 3 16 40 6 2,5 12 30 4 2 1,5 8 20 2 1 0,5 4 10 0 0 0 0 2016 2017 2018 2019 2020 Q2 2016 2017 2018 2019 Q2 2020 Q2 2016 2017 2018 2019 Q2 2020 Q2 2021 2020 2021 2020 2021 Dividend
Slide 8: Rental growth
Rental growth • Our project portfolio marks the strongest contributer to the income growth development • Acquired growth was 3,6% due to a mix of acquisitions during the last 12 months. Msek +8 % 800 35 3 700 23 673 Q2 2021 (YTD) 600 2 8 622 Like-for-like 0.5 % 500 Project developments 5.6 % 400 Acq
Slide 9: Income statement – Period (YTD)
Income statement – Period (YTD) MSEK 2021 Jan-June 2020 Jan-June Y-o-Y change Rental income 672,8 622,3 8% SEK/sqm 661 661 0% Property expenses -135,3 -122,0 11% SEK/sqm -133 -131 2% NOI 537,5 500,3 7% NOI surplus ratio 79.9% 80,4% 1% Central admin -17,5 -17,0 3% Other -1,0 -4,4 -77% Financial net -
Slide 10: Objective – to maintain a strong cashflow
Objective – to maintain a strong cashflow Msek Msek 1 400 100% 1 400 100% PFPM 1 200 ratio, 1 200 80% 80% 1 000 59 % 1 000 800 60% 800 60% 600 40% 600 39% 40% 400 400 30% 20% 22% 20% 200 200 13% 15% 11% 10% 0 0% 0 0% 2016 2017 2018 2019 Q2 2020 Q2 2016 2017 2018 2019 Q2 2020 Q2 2020 2021 2020 2021 R
Slide 11: Operational review
Operational review CATENA
Slide 12: Portfolio characteristics (1 of 2)
Portfolio characteristics 1 (2) REGIONS # of Lettable area Fair Value Rental value Economic Contractual Gross Surplus properties tsqm Msek Msek letting ratio annual rent, initial ratio % % Msek1 yield %2 Gothenburg 18 297.1 2,876.0 208.7 88 183.2 6.4 82 Helsingborg 24 450.0 4,123.5 273.9 97 265.3 6.
Slide 13: Portfolio characteristics (2 of 2)
Portfolio characteristics 2 (2) By value Tenant concentration by Asset size breakdown Letteble space types, by Contractual income area 14% 13% 38% 48% 40% 55% 19% 45% 48% 7% 39% 20% 13% Gothenburg 10 biggest tenants Helsingborg < 10k sqm Terminals Rest Jönköping 10k - 20k sqm Distribution Malmö > 20
Slide 14: Well reputed and diversified customer base
Well reputed and diversified customer base Logistics/Transport Fashion/Leisure Health/Medical Home/Construction Food/Beverage /Recycling /Electronics /Packaging 14
Slide 15: Rental market
(Numbers indicate rental value per sqm) Rental market Region Stockholm MSEK 750 kr/sqm 1 600 900 Stockholm 992 kr/sqm 1 400 • Prime rent – terminal 1 200 800 Örebro 1 000 900 – 1,700 SEK/Sqm 578 kr/sqm 800 700 600 • Prime rent – Region Gothenburg 702 kr/sqm 400 600 distribution 550 – 200 1,000 SEK/S
Slide 16: Letting operations
Letting operations Net rental by Maturity profile – WALE development Letting ratio contractual value contractual annual rent development SEKm SEKm Y 250 97% 5.3 96% 200 8 96% 600 38,9% 95% 95% 95% 150 7 95% 500 100 6 93% 93% 50 400 5 0 91% 300 4 -50 14,2% 200 11,7%12,6%12,1% 3 89% -100 9,0% 2 -150 1
Slide 17: Balance sheet and debt management
Balance sheet and debt management 17
Slide 18: Valuation
Valuation EPRA NRV per share Return on equity, % 300 25 250 20 200 15 150 10 100 5 50 0 0 2016 2017 2018 2019 Q2 2020 2020 Q2 2021 2016 2017 2018 2019 2020 Q2 2021 Return on equity Average 18
Slide 19: Statement of financial position
Statement of financial position SEK M 2021 Q2 2020 Q2 Total assets Investment properties 21,174.1 17,222.5 Goodwill 503.0 503.0 Other assets 985.1 907.0 Opening cash and cash equivalents 636.8 165.2 Total assets 23,299.0 18,797.7 Total shareholders’ equity and liabilities Equity 9,657.9 EPRA NRV - 2
Slide 20: Property value and yield
Property value and yield EPRA NIY Msek 5.3 % 25 000 9% EPRA 22 500 8% 20 000 7% In 2017 Catena´s share 17 500 6% was included in the 15 000 5% international index EPRA 12 500 4% 10 000 7 500 3% 5 000 2% 2 500 1% 0 0% 2016 2017 2018 2019 2020 Q2 2021 Assets IFRS property value Gross inital yield EPRA
Slide 21: Nordic Credit Rating BBB- (stable outlook)
Nordic Credit Rating BBB- (stable outlook) BBB- (stable) long-term issuer rating by Nordic Credit Rating as per 3 May 2021 reflecting Catena’s: ✓ Strong position as one of the largest logistics property managers in Sweden, a sector expected to benefit from increasing e-commerce ✓ Long remaining leas
Slide 22: Green finance framework
ESG ENVIRONMENTAL Green finance framework 1 (2) Catena works with a long-term perspective for a sustainable society and has established a green framework for financing. • Was launched May 2021 Examples of Green Eligible Assets • Based on the Green Bond and Green Loan Principles • The framework is an
Slide 23: Green finance framework
ESG ENVIRONMENTAL Green finance framework 2 (2) Use of Proceeds Green Eligible Assets split Green Eligible Sub-category Core SDGs Assets 2% Category I - New construction & major renovations • New construction with: 14% o minimum Miljöbyggnad Silver or Green Building or other minimum equivalent certi
Slide 24: Debt and Capital Structure
Debt and Capital Structure LTV & Cost of debt Capital structure 100% 4,0% 30 000 65% 3,5% 25 000 80% 55% 3,0% 20 000 60% 2,5% 45% 2,0% 15 000 40% 1,5% 35% 10 000 1,0% 20% 25% 5 000 0,5% 0% 0,0% 0 15% 2016 2017 2018 2019 2020 Q2 2021 2016 2017 2018 2019 2020 Q2 2021 Net LTV Avg. cost of debt Interest
Slide 25: Debt profile
Debt profile Debt maturity profile Financing split Msek Debt 14% 5 000 maturity 4 500 3.3 yr 4 000 8% 3 500 Total 3 000 Interest SEK 10.2bn 53% 9% 2 500 maturity 2 000 3.0 yr 1 500 16% 1 000 Hedge 500 Bankloans ratio 0 71% SFF bonds 0-1 år 1-2 år 2-3 år 3-4 år 4-5 år 5- år Bankloans CP Commercial pa
Slide 26: Capital deployment
Capital deployment CATENA
Slide 27: Transactions
Capital deployment YTD 1,225 Acquisitions (MSEK) Transactions 0 Divestments (MSEK) Investment target Capex Development capex 446 (MSEK) • Set to invest minimum 600 Msek/year in development projects. 27
Slide 28: Transactions
Transactions ACQUISITIONS Property Transfer Letteble area Region Municipality Property Rental income/y (sqm) value (MSEK) MSEK Åre 92 Q1 2021 38,293 Gothenburg Borås 272 17.4 Morgongåva 15:33 Q1 2021 Land Stockholm Heby 32 0 Hammerholmen 47-49 Q1 2021 16,489 Malmö Hvidovre (DK) 218 12 Kokbjerg 15 Q1
Slide 29: Development projects, in progress
(Boxes represents a selection of ongoing projects) Development projects, in progress Storheden 2:1, Luleå Kyl och frysexpressen Total investment: 75 MSEK Finalized: Q4 2021 Book value, MSEK 930 Morgongåva 15:33, Heby Babyland Total investment: 300 MSEK Finalized: Q1 2022 Remaining investments, Broby
Slide 30: Potential, future development
(Presented landlots represents a selection of our outstanding landbank) Potential, future development Örebro (JV, 34%) Törsjö Magneten 6 Sqm land: 920’ Umeå Pending zoning plan Sqm land: 42’ Zoning plan activated Landvetter Härryda Sqm land: 210’ Pending zoning plan Stockholm South Nykvarn/Södertälj
Slide 31: Sustainability
Sustainability CATENA
Slide 32: Sustainability strategy and targets
ESG ENVIRONMENTAL Sustainability strategy and targets Societal Sustainable Attractive development properties employer By developing more sustainable logistics, Catena What we deliver must be sustainable over time. Catena should be an exciting and responsible is able to influence both business partne
Slide 33: Sustainability within Catena
ESG ENVIRONMENTAL Sustainability within Catena Environmental certification and photovoltaic cells Energy efficiency and CO2e • With 15 facilities installed and 7 underway they will correspond to • Continued strive for examining ways to minimize consumed energy approximately 5% of all electricity con
Slide 34: Market insights and ongoing
Market insights and ongoing 34
Slide 35: Online spending grew by 53% in the first quarter of 2021
Online spending grew by 53% in the first quarter of 2021 compared to 2020. Most staggering was the growth related to groceries, up by 128%. www.postnord.se/ebarometern Online sales hit 149 percent growth in the first quarter and the share of total retail sales amounted to 6.1 percent which one year
Slide 36: E-commerce penetration at 15% of retail sales – more to come
E-commerce penetration at 15% of retail sales – more to come E-commerce growth 2020, Sweden E-commerce share of grocery, Sweden SEKb 100% 400 325 345 80% 300 60% 200 40% 20% 100 0% 0 2% 4% 2019 2020 Ecommerce Physical store Source: Handelsfakta.se 36
Slide 37: Logistic position Sunnanå
Logistic position Sunnanå DHL FREIGHT DHL EXPRESS SVENSK CATER CHEFS CULINAR MULTI TENANT (Lekia, DHL, Padel Crew, Scandinavian Cosmetics, Rechon Life Science, DS Smith) ZONING PLAN APPROVED 110 000 Sqm of land Total investment: 1,001 MSEK Total Rental value: 73 MSEK Gross yield: 7.3% Total sqm: 80,
Slide 38: Acquisition Björröd 1:208
Acquisition Björröd 1:208 Investment: 79 MSEK Tenant: Liseberg AB Total sqm: 7,500 Lease duration: 10Y
Slide 39: Q&A
Q&A Jörgen Eriksson CEO, Sofie Bennsten CFO catenafastigheter.com 39
Slide 40: The leading property company in logistics
The leading property company in logistics.