25 slides from Stendoerren Fastigheter Ab Class B's conference presentation, May 11, 2017
Slide 1: Presentation Carnegie
MAY 11, 2017 PRESENTATION CARNEGIE
Slide 2: Agenda
AGENDA PART 1 – BUSINESS RATIONALE PART 2 – STENDÖRREN – THE COMPANY PART 3 – GROWTH 2 PRESENTATION | MAY 11, 2017
Slide 3: Part 1 Business Rationale
PART 1 BUSINESS RATIONALE
Slide 4: Business idea and objectives
20 10 MÅLSÄTTNING FÖR RESPEKTIVE NYCKELTAL 0 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 BUSINESS RATIONALE BUSINESS IDEA AND OBJECTIVES 3,0 50 2,5 BUSINESS IDEA FINANCIAL OBJECTIVES 40 Stendörren Fastigheter creates long-term growth and value creation • Demonstrate an average long-term annual return
Slide 5: Why focusing on Stockholm?
BUSINESS RATIONALE POPULATION GROWTH 1995 - 2016 REGIONAL CITIES INCL. SURROUNDING MUNICIPALITIES WHY FOCUSING ON STOCKHOLM? Source: Evidens 5 PRESENTATION | MAY 11, 2017
Slide 6: Employment growth in the Stockholm region 1995-2015
BUSINESS RATIONALE EMPLOYMENT GROWTH IN THE STOCKHOLM REGION 1995 - 2015 Service sector Total employment 190 180 170 160 150 140 Index 130 120 110 100 90 Year Source: Evidens 6 PRESENTATION | MAY 11, 2017
Slide 7: Condominium prices in suburban Stockholm 1996-2016
7 SEK/sq m 60 000 10 000 50 000 20 000 30 000 40 000 1996:1 1996:3 1997 :1 1997 :3 PRESENTATION | MAY 11, 2017 1998:1 1998:3 1999:1 1999:3 2000 :1 2000 :3 2001:1 2001:3 2002:1 2002:3 2003:1 2003:3 2004:1 2004:3 2005:1 Year 2005:3 BUSINESS RATIONALE 2006:1 2006:3 2007:1 2007:3 2008:1 2008:3 2009:1 20
Slide 8: Logistics in Greater Stockholm region
BUSINESS RATIONALE LOGISTICS IN GREATER STOCKHOLM REGION 16,0% Vacancy 14,0% Yield 12,0% Stibor 90 10,0% 8,0% 6,0% 4,0% 2,0% 0,0% -2,0% 2010 2011 2012 2013 2014 2015 2016 680 Rent 18,0% 670 Inflation 660 13,0% 650 640 8,0% 630 3,0% 620 0,0% 610 -2,0% 2010 2011 2012 2013 2014 2015 2016 Source: Newsec
Slide 9: Part 2 Stendörren
PART 2 STENDÖRREN
Slide 10: Property portfolio
STENDÖRREN PROPERTY PORTFOLIO UPPSALA 80% WITHIN THE GREATER ENKÖPING STOCKHOLM REGION VÄSTERÅS STORSTOCKHOLM ESKILSTUNA STOCKHOLM SÖDERTÄLJE FLEN 10 PRESENTATION | MAY 11, 2017
Slide 11: Stendörren 2014-2017
STENDÖRREN 2014 - 2017 Q1 2017 Q4 2016 Q4 2015 Q2 2015 Q4 2014 Market value, mSEK 5 752 5 817 4 889 4 428 1 962 No. properties 96 95 81 75 27 Lettable area, sq m 599 000 612 000 585 000 544 000 252 000 NOI running 12 m*, mSEK 320 316 302 - 307 280 135 Equity, mSEK 2 099 2 054 1 489 1 284 724 Senior
Slide 12: Project development
FÖRDELNING UTHYRBARYTA GEOGRAFISK FÖRDELNING FÖRDELNING UTHYRBARYTA GEOGRAFISK FÖRDELNING ”OUR PORTFOLIO OF CASH STENDÖRREN FLOW YIELDING PRO- PERTIES CAN SUPPORT A PROJECT PORTFOLIO OF PROJECT DEVELOPMENT - APPROX. 520 MSEK BETWEEN 5 - 15% OF TOTAL PORTFOLIO VALUE” FÖRDELNING UTHYRBARYTA GEOGRAFISK
Slide 13: Portfolio build up - actuals
STENDÖRREN Property value Annual NOI earning capacity PORTFOLIO BUILD UP - ACTUALS 7 000 9,0% 6 000 5 817 5 752 8,0% 5 537 5 380 4889 4826 5 000 7,0% 4496 7,0% 6,8% 6,8% 6,4% 6,2% 6,4% 6,1% 4 000 6,2% 6,3% 6,1% 6,0% 5,8% 5,6% 5,6% 5,5% 3 000 5,0% 2 000 4,0% 1 000 3,0% 288 305 305 313 310 320 320 2,0
Slide 14: Debt funding overview
FÖRDELNING UTHYRBARYTA GEOGRAFISK FÖRDELNING STENDÖRREN DEBT FUNDING OVERVIEW Senior debt, 77 % MATURITY AND INTEREST PROFILE Bond, 22 % 1 800 Seller notes, 1 % 1 600 STÖRSTA HYRESGÄSTERNA FÖRDELNING UTHYRBARYTA GEOGRAFISK FÖRDELNING 1 400 FÖRDELNING UTHYRBARYTA GEOGRAFISK FÖRDELNING 1 200 FÖRDELNIN
Slide 15: Share value and key equity ratios
STENDÖRREN SHARE VALUE AND KEY EQUITY RATIOS KEY EQUITY RATIOS JAN–MAR JAN–MAR 2 500 2017 2016 83,10 83,22 73,50 77,85 76,00 80,02 Share price, SEK 65,5 55,0 2 000 72,25 68,50 65,50 70,02 Equity per share, SEK 76,0 54,9 58,25 57,50 60,02 EPRA NAV per share, 1 500 56,51 SEK 83,1 58,2 49,06 48,90 55,0
Slide 16: Key financial ratios and key property ratios
STENDÖRREN KEY FINANCIAL RATIOS AND KEY PROPERTY RATIOS KEY FINANCIAL RATIOS JAN–MAR JAN–MAR KEY PROPERTY RATIOS JAN–MAR JAN–MAR 2017 2016 2017 2016 Excess Ratio (NOI/Rental income), % 68% 69% Lettable area, ’000 sq m 599 575 ROE (12m average), % 33% 24% No. of properties 96 83 Avrg. Interest fixing
Slide 17: Organisation - created for growth
”HAVING STAFF IN-HOUSE STENDÖRREN HELPS US CREATE LONG- TERM RELATIONSHIPS WITH OUR TENANTS AND ORGANISATION - CREATED FOR GROWTH ENSURES THE DELIVERY” 33 BOARD CEO co-workers MANAGEMENT TEAM MARKETING AND LEASING DEPARTMENT PROPERTY DEPARTMENT FINANCIAL DEPARTMENT PROJECT MANAGEMENT ASSET MANAGEMEN
Slide 18: Part 3 Growth
PART 3 GROWTH
Slide 19: Our property portfolio is located where Sweden is growing the most
GROWTH OUR PROPERTY PORTFOLIO IS LOCATED WHERE SWEDEN IS GROWING THE MOST UPPSALA VÄSTERÅS ESKILSTUNA ÖREBRO STOCKHOLM SÖDERTÄLJE UPPSALA ENKÖPING LINKÖPING VÄSTERÅS STORSTOCKHOLM GÖTEBORG JÖNKÖPING ESKILSTUNA STOCKHOLM SÖDERTÄLJE FLEN MALMÖ 19 PRESENTATION | MAY 11, 2017
Slide 20: Where in Stockholm region do we want to grow?
THE REGION HAS SIGNIFICANTLY HIGHER GROWTH GROWTH THAN THE REST OF SWEDEN WHERE IN STOCKHOLM REGION DO WE WANT TO GROW? UPPSALA VÄSTERÅS ESKILSTUNA ÖREBRO STOCKHOLM SÖDERTÄLJE LINKÖPING GÖTEBORG JÖNKÖPING Existing portfolio Possible expansion MALMÖ 20 PRESENTATION | MAY 11, 2017
Slide 21: Growth forecast without new capital
FÖRDELNING UTHYRBARYTA GEOGRAFISK FÖRDELNING Possible growth GROWTH of up to 1 billion GROWTH FORECAST without new capital Approx. 500 MSEK Acquisitions required. Approx. 200 MSEK Tenant improvements Approx. 300 MSEK New builds STÖRSTA HYRESGÄSTERNA Approx. 200 MSEK Approx. 500 MSEK Approx. 300 MSEK
Slide 22: Stendörren towards main market
GROWTH STENDÖRREN TOWARDS MAIN MARKET Mid Cap Mid MidCap cap Broader Improved Significantly Improved Expected Improved investor access to improved attention improved processes base capital stock from financing and internal markets liquidity analysts terms control 22 PRESENTATION | MAY 11, 2017
Slide 23: Key figures
LETTABLE AREA: RENTAL VALUE: NET PROFIT (Q1): 599 000 M2 EQUITY RATIO: 112 MKR 44 MKR 35 % PROPERTY VALUE: LTV: 5 752 MKR 57 % NET OPERATING INCOME: 72 MKR 23 PRESENTATION | MAY 11, 2017
Slide 24: Q&A
Q&A 24 PRESENTATION | MAY 11, 2017
Slide 25: For further information please contact
FOR FURTHER INFORMATION PLEASE CONTACT: CALENDAR: Q2 2017: 21 juli 2017 FREDRIK BRODIN, CEO MAGNUS SUNDELL, CFO fredrik.brodin@stendorren.se magnus.sundell@stendorren.se 08 - 518 331 01 08 - 518 331 02 25 PRESENTATION | MAY 11, 2017