Catena Ab · OMXSTO:CATE
Catena Ab — FY2021 Earnings Presentation
34 slides from Catena Ab's earnings presentation, 2022
Slide 1: The leading property company in logistics
The leading property company in logistics.
Slide 2: Year-end report 2021 Earnings call
Year-end report 2021 Earnings call Jörgen Eriksson CEO Sofie Bennsten CFO 2
Slide 3: Highlights
Highlights Convincing market fundamentals underpinning a strong FY21 • FY21 Rental income increased by 10 percent to SEK 1 387.4 million YoY. Total operations • FY21 Profit from property management of SEK 824.1 million, up 15 percent YoY. • EPRA NRV per share of 323.74 up 32 percent YoY. • Earnings
Slide 4: Review of 2021
Review of 2021 Development • Replenished our landbank with approx. 700 ksqm of attractive plots in the Helsingborg region adding future potential investment of above SEK 2 billion and 300 ksqm of new prime logistics space • Groundworks have started or are about to in highly sought-after locations in
Slide 5: Financial performance
Financial performance CATENA
Slide 6: Income statement – 2021
Income statement – 2021 SEK M 2021 Jan-Dec 2020 Jan-Dec Y-o-Y change Rental income 1,387.4 1,263.9 10% SEK/SQM (weighted average) 665 666 Property expenses -292.0 -260.1 12% SEK/SQM (weighted average) -140 -137 NOI 1,095.4 1,003.8 9% NOI surplus ratio 79.0% 79.4% Central admin -36.6 -35.2 4% Other -
Slide 7: Resilient cash flow trend continous
Resilient cash flow trend continous Objectives • Catena targets a minumum 50 percent profit from property management ratio • Annual target of 10 percent growth in Profit from property management • Dividend pay-out ratio of 50 percent less standard tax of profit from property management Rental income
Slide 8: Operational review
Operational review CATENA
Slide 9: Portfolio characteristics (1/2)
Portfolio characteristics (1/2) REGIONS # of Lettable area Fair Value Rental value Economic Contractual annual Surplus properties Tsqm SEK M SEK M letting ratio % rent, SEK M1 ratio %2 Gothenburg 18 297.1 3.125,3 209.2 96 200.6 83 Helsingborg 26 460.8 4,697.2 286.1 96 275.5 77 Jönköping 13 228.2 1,5
Slide 10: Portfolio characteristics (2/2)
Portfolio characteristics (2/2) Our three largest tenants (DHL, Postnord and ICA) represent 26 percent of our rentroll, are commited via 40 different rental agreements spread over 22 separete locations and thereby significantly lowering our tenancy risk. By value Asset size breakdown Lettable space
Slide 11: Well reputed and diversified customer base
Well reputed and diversified customer base Sector exposure Customer Share of contractual value 2% Logistics and transport DHL 13% 4% 3% Postnord 7% 4% Food and beverage ICA 6% 6% Rarely bought goods 43% Boozt 3% 4% Construction and Nowaste Logistics AB 3% furnishing Other Martin & Servera AB 2% Daga
Slide 12: Rental growth 2021
Rental growth 2021 • Active capital deployment being the driving force of rental growth in 2021 • Like-for-like rental growth of 1.4 percent implying solid occupancy. SEK M 57 17 1400,0 64 8 2021 FY 1200,0 7 1 387 1 264 Like-for-like1 1.4 % 1000,0 800,0 +10 % Project developments 4.5 % 600,0 Acquisi
Slide 13: Rental market
(Numbers indicate rental value per sqm) Rental market Prime Rent Cross-Dock (SEK/sqm)* Prime Rent Distribution Centre (SEK/sqm)* 2 000 1 000 Region Stockholm 800 755 SEK/sqm 1 500 Stockholm 600 992 SEK/sqm 1 000 400 Örebro 500 578 SEK/sqm 200 0 0 Region Gothenburg 708 SEK/sqm Stockholm Gothenburg Ör
Slide 14: Letting operations
Letting operations • Experiencing unprecedented level of demand and occupancy is kept high and stable • Net leasing was SEK 32 million during 2021 and negative 22 million in the fourth quarter due to a temporary loss of rented space • WALE of 5.5 years signals a resiliant incomestream Leasing by Mat
Slide 15: Balance sheet and debt management
Balance sheet and debt management 15
Slide 16: Demonstrated shareholder value creation
Demonstrated shareholder value creation EPRA NRV per share Return on equity, % 350 323 35 300 30 29 245 250 25 22 203 21 200 170 20 17 150 15 150 136 15 11 100 10 50 5 0 0 2016 2017 2018 2019 2020 2021 2016 2017 2018 2019 2020 2021 Return on equity Average 16
Slide 17: Statement of financial position
Statement of financial position SEK M 2021 2020 Total assets Investment properties 23,400.0 18,612.4 Goodwill 503.0 503.0 Other assets 968.5 872.1 Opening cash and cash equivalents 992.6 411.1 Total assets 25,864.1 20,398.6 Total shareholders’ equity and liabilities Equity 11,255.0 EPRA NRV - 323 SE
Slide 18: Property value growth and yield
Property value growth and yield • During 2021 capital value movement amounted to 2,318 Msek representing 11 percent increase in property value. SEK M EPRA NIY 30 000 4.9 % 7% 27 500 25 000 6% 22 500 5% 20 000 17 500 4% 15 000 12 500 3% 10 000 2% 7 500 5 000 1% 2 500 0 0% 2016 2017 2018 2019 2020 202
Slide 19: LTV and Capital Structure
LTV 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% 44% 59% 57% 56% 2,0% 15 000 53% 50% 37% 40% 43% 1,5% 36% 35% 10 000 32% 33% 32% 1,0% 20% 25% 5 000 0,5% 0% 0,0% 0 15% 2016 2017 2018 2019 2020 2021 2016 2017 2018 2019 202
Slide 20: Debt profile, maintaining financial discipline
Debt profile, maintaining financial discipline Catena was rated BBB- in May 2021. Established a SEK 5 billion MTN program and successfully placed our inaugural Green Bond of SEK 1.4 billion Split in two tranches, 4 year tenor and creditspread of 135 bps. Debt maturity profile Financing split SEK M 5
Slide 21: Capital deployment
Capital deployment CATENA
Slide 22: Transactions
Capital deployment 2021 Msek 1,538 Acquisitions (SEK M) 6 000 Transactions 5 250 4 500 3 750 7 Divestments (SEK M) 3 000 2 250 1 500 750 Capex Devevlopment capex 0 913 (SEK M) 2016 2017 2018 2019 2020 2021 Aqcuisitions capex (net) Development capex 22
Slide 23: Development projects in progress
(Boxes represents a selection of ongoing projects) Development projects in progress Planeraren 2, Borlänge Tenant: ICA FY21 carrying value, SEK M 600 Investment: 90 SEK M Sqm: 3,334 Finalized: Q1 2023 Morgongåva 15:33, Heby Tenant: Babyland Investment: 300 SEK M Sqm: 38,000 Finalized: Q1 2022 Remain
Slide 24: Future development
(Presented landlots represents a selection of our outstanding landbank) Future development – positioned for accelerating growth Örebro South Logistics position (JV, 34%) Landvetter Törsjö Härryda Sqm land: 920’ Landbank, Tsqm Sqm land: 210’ Pending zoning plan (includes JV agreements, and various 5,
Slide 25: Sustainability
Sustainability CATENA
Slide 26: Sustainability within Catena
ESG ENVIRONMENTAL Sustainability within Catena Social Energy efficiency and CO2e Certified as a Great Place to WorkTM Continued strive for examining ways to minimize consumed energy and CO2e emissions. Energy consumption per sqm kWh/sqm 2021 2020 2019 Environmental certification and photovoltaic cel
Slide 27: Outlook
Outlook CATENA
Slide 28: Strategy and position for profitable growth
Strategy and position for profitable growth • Market conditions speak in favour of resilient growth • Levels of demand at historic highs and predicted to last given the strong fundamental drivers • Supply shortage of new modern space • Land is becoming scarcer • Focus on development complemented by
Slide 29: Pipeline of near term development opportunities
Pipeline of near term development opportunities Location Size of land Potential GLA Status Approx. Investments Likely start of Msek1 development Logistics position Landvetter, Gothenburg 210,000 95,000 Groundwork started 800 2022 Part of Stockholm South 100,000 40,000 Groundwork started 340 2022 Log
Slide 30: The best logistics area in Sweden 2022
The best logistics area in Sweden 2022 Logistics position Söderåsen Municipality of Bjuv, in close proximity to E4 motorway and with quick access to E6 motorway Total area: 565 000 SQM Logistics position Ramlösa Municipality of Helsingborg, immediately adjacent to the E6 motorway Total area: 160 000
Slide 31: Ramlösa
Logistics position Ramlösa Project: Logistics position Ramlösa, Helsingborg Land (SQM): 160,000 Expected GLA (SQM): 70,000 Exp. Investment: 600 MSEK Certification: BREEAM
Slide 32: Proposed dividends
Dividends 9 8 8 7,5 7 6,5 5,75 Proposed 6 5 4,50 4 3,50 3,00 3 2 1 0 2016 2017 2018 2019 2020 2021 2022 32
Slide 33: Q&A
Q&A Jörgen Eriksson CEO Sofie Bennsten CFO 33
Slide 34: The leading property company in logistics
The leading property company in logistics.