Bewi Invest Asa · OSL:BINT
Bewi Invest Asa — KMC Properties — Debt Investor Presentation (June 2023)
58 slides from Bewi Invest Asa's debt investor presentation, Jun 26, 2023
Slide 1: KMC Properties ASA – Contemplated NOK 900 million bond issue
KMC Properties ASA Contemplated NOK 900 million bond issue Investor presentation | June 2023
Slide 2: Disclaimer
Disclaimer THIS DOCUMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM THE UNITED STATES OF AMERICA, ITS TERRITORIES OR POSSESSIONS, JAPAN, AUSTRALIA, CANADA, OR TO ANY RESIDENT THEREOF, OR ANY JURISDICTION WHERE SUCH DISTRIBUTION IS
Slide 3: Summary of risk factors
Summary of risk factors The following sets out a summary of key risks facing the Issuer. Please see pages 54-57 for a full description of the risk factors. Risks related to the operational activities • Risks related to the tenants and the rental market in which the Group operates. • Risks related to
Slide 4: Glossary and acronyms
Glossary and acronyms Term Meaning Term Meaning CAPEX Capital expenditures HVAC Heating, ventilation and air conditioning CPI Consumer Price Index LTV Loan to Value Earnings Before Interest, Taxes and EBITA NOI Net Operating Income Amortization Earnings Before Interest, Taxes, EBITDA NOI-yield Net O
Slide 5: Introduction
1 INTRODUCTION 2 KMC PROPERTIES 3 BOND COLLATERAL SUMMARY APPENDIX: MARKET VIEW AND A DETAILED ASSET DESCRIPTIONS R RISK FACTORS 5
Slide 6: Transaction summary
Transaction summary Transaction description Legal structure and financial sources post refinancing ▪ KMC Properties ASA (the "Issuer" or the "Company") is an Oslo Børs listed real estate company NOK 900m KMC Properties ASA focusing on industrial and logistic properties senior secured bond ▪ The Comp
Slide 7: Debt overview and amortisation profile post refinancing
Debt overview and amortisation profile post refinancing Debt overview Debt maturity profile Years to NOKm Type Creditor NOKm Margin IBOR maturity Bond loan Bank loan New secured bank loan SB1 NN 316 2.50% 3M NIBOR 5.1 New facilities (refinancing) 1,865 New secured bank loan DNB / SB1 SR 765 2.80% 3M
Slide 8: Key bond terms
Key bond terms Issuer: KMC Properties ASA Initial Issue Amount: NOK 900 million Maximum Issue Amount: NOK 1,500 million Status: Senior Secured Guarantors: KMC Properties AS, the Original Guarantors and any Property Group Company being or becoming owners of additional properties Inter alia 1st priori
Slide 9: Key credit highlights
Key credit highlights 1 ▪ 40 years of heritage as owner and operator of industrial properties ▪ Long-term industrial approach to real estate ownership, with emphasis on tenant collaboration and environmentally and socially sustainable properties to maximise value Well positioned industrial creation
Slide 10: KMC Properties
1 INTRODUCTION 2 KMC PROPERTIES 3 BOND COLLATERAL SUMMARY APPENDIX: MARKET VIEW AND A DETAILED ASSET DESCRIPTIONS R RISK FACTORS 10
Slide 11: Foundation built on 40 years of heritage in industrial properties
Foundation built on 40 years of heritage in industrial properties 2006 2012 2014 2018 BEWI acquires BEWI acquires BEWI operations Sites in Denmark and Genevad, Swedish company encompassing Sweden sold to KMCP; 2020 effectively Thermisol along all Nordic facilitating acquisition of Further acquisitio
Slide 12: KMC Properties at a glance today
KMC Properties at a glance today KMC footprint Strategic focus 65 properties ~574,000 sqm Industrial and logistics properties with solid tenants in attractive industries on long-term leases, located strategically and serving a critical function for its tenant operations Growth opportunities selected
Slide 13: Attractive risk-reward – lower risk than implied by the yield
Attractive risk-reward – lower risk than implied by the yield 6.9% Net yield Solid tenants in attractive Business critical assets Downside protection from Contractual frameworks in industries with sticky features high residual value place to reduce risk Locations with purpose… Value vs new-build cos
Slide 14: Considerable transformation and growth since Q4 2020
Considerable transformation and growth since Q4 2020 Development in key metrics from Q4’20 to Q1’23 Development in tenant exposure Q4’20 to Q1’23 GAV (NOKbn) and # of assets Annualised GRI and WAULT 8 tenants as of Q4’20 17 tenants as of Q1’23 NOKm Q1’23 Q4’20 +94% NEW! NEW! 0.4 6.0 Kastor 0.3 Inves
Slide 15: Solid tenants and attractive industry exposure
Solid tenants and attractive industry exposure Raw materials Packaging Insulation Overview of tenants as of Q1 2023 ▪ Demand for EPS (expanded European EPS market European EPS market European EPS market Packaging, components and polystyrene) across product types by end-user packaging by end user bui
Slide 16: Top tenant: BEWI - integrated and diversified business model
Top tenant: BEWI - integrated and diversified business model 50% Introduction to BEWI and operating segments BEWI portfolio diversification ▪ BEWI has an integrated business model, meaning that the group manages the entire value chain, from production of raw materials and end products, to collection
Slide 17: Tenant 2 and 3: Insula and Scana
Tenant 2 and 3: Insula and Scana Introduction to INSULA 15% Introduction to Scana 8% ▪ Producer and supplier of sustainable seafood products for groceries and institutional Scana is a listed industrial owner company in the ocean industries creating value through household in the Nordic region active
Slide 18: Tenant 4 and 5: Grøntvedt and Inwido
Tenant 4 and 5: Grøntvedt and Inwido Introduction to Grøntvedt 8% Introduction to Inwido 5% ▪ Leading window group in Europe with presence Grøntvedt Pelagic is one of the world’s leading pelagic companies specializing in herring in 11 countries and approximately 4,400 products customized to customer
Slide 19: Dedicated ESG strategy built on top of four pillars
Dedicated ESG strategy built on top of four pillars ESG strategy in brief Ongoing environmental initiatives 1 2 ▪ Current total production of 400,000+ kWh/yr from installations at Mongstad, Ågotnes and Klädesholmen installations Long-term thinking Internal competency Solar PV ▪ Recently completed a
Slide 20: Visibility of value accretive growth going forward
Visibility of value accretive growth going forward Growth ambition Clearly set growth criteria 8.0 1.2 Greenfield development of Acquisitions in collaboration 6.0 0.8 new facilities for new and with current and new tenants existing clients + Additional growth Investment pipeline Contract extensions
Slide 21: Potential tap issue – option to acquire 7 BEWI assets
Potential tap issue – option to acquire 7 BEWI assets Item Germany Belgium Poland Total Overview Properties 2 2 3 7 Contract lease (NOKm) 21 15 11 47 Hamburg Ritzlebener Str. 1, WAULT yrs. 17.0 17.0 17.0 17.0 Mechau Berlin Leipzig Building size (sqm) 55,149 41,965 20,233 117,347 Køln CPI 100% 100% 1
Slide 22: Strong development since listing on OSE (I/II)
Strong development since listing on OSE (I/II) Gross value, net yield and EBITDA yield development Comments NOKm ▪ Strong financial and operational development since listing on OSE 10.7 10.7 10.6 10.5 10.4 10.1 10.0 9.8 11.0 11.1 ▪ Near doubling of gross asset value from NOK 3.1bn to NOK 6.0bn throu
Slide 23: Strong development since listing on OSE (II/II)
Strong development since listing on OSE (II/II) Run rate1 EBITDA and EBITDA margin development Comments NOKm ▪ EBITDA margin expansion from 81% to 88% 85% 86% 85% 86% 87% 88% 88% 83% 81% 83% expected to increase even further as admin costs 364 are in place to support the upcoming growth 325 ▪ This w
Slide 24: Bond collateral summary
1 INTRODUCTION 2 KMC PROPERTIES 3 BOND COLLATERAL SUMMARY APPENDIX: MARKET VIEW AND A DETAILED ASSET DESCRIPTIONS R RISK FACTORS 24
Slide 25: Diversified portfolio of bond collateral with sticky tenants
Diversified portfolio of bond collateral with sticky tenants WAULT CPI Triple Value GRI Net yield Value/ Debt/ Rent/ Rent % Country Assets Sqm Tenants (yrs.) (%) net (NOKm) (NOKk) (%) sqm sqm1 sqm TCB2 4 (1-4) 30,793 14.3 100% BEWI and Insula ✓ 295 23,506 7.9% 9,583 5,654 763 2.5% 4 (5-8) 79,760 9.8
Slide 26: Bond collateral Finland
Bond collateral Finland WAULT CPI Tenant Triple GRI Rent/ Rent % # Address Sqm Other portfolio KPIs (yrs.) (%) (Guarantor) net (NOKk) sqm TCB1 Escamar Mastotie 7, Kuopio, FIN 5,051 6.0 100 % ✓ 5,800 1,148 0.7% (Insula Full term + 3 months) Value Net yield (NOKm) (%) BEWI Toravantie 18, Sastamala, FI
Slide 27: Bond collateral Netherlands
Bond collateral Netherlands WAULT CPI Tenant Triple GRI Rent/ Rent % # Address1 Sqm Other portfolio KPIs (yrs.) (%) (Guarantor) net (NOKk) sqm TCB1 BEWI Nieuweweg 235, Wichjen, NL 31,949 9.8 100 % ✓ 14,580 456 3.3% (Synbra Full term) Value Net yield (NOKm) (%) BEWI Textielstraat 30, Oldenzaal, NL 13
Slide 28: Bond collateral Denmark
Bond collateral Denmark WAULT CPI Tenant Triple GRI Rent/ Rent % # Address Sqm Other portfolio KPIs (yrs.) (%) (Guarantor) net (NOKk) sqm TCB1 Tungevej 2-4, Hvide Sande DK 2,807 11.1 100 % Insula (Insula full term + 3m) ✓ 1,440 513 1.6% Constantiavej 31 and Århusgade 24 12,106 11.1 100 % Insula (Ins
Slide 29: Solid downside protection from attractive residual value
Solid downside protection from attractive residual value Value Rent level Yield NOK 26,618 NOK 1,367 % 7.9% 763 4.9% 9,583 445 Finland 5,654 Value / sqm Debt / sqm Est. newbuild cost1 Rent / sqm Debt coverage Prime / sqm Yield Prime / sqm2 18,070 7.3% 1,139 3.4% 5,995 443 Netherlands 3,537 257 Value
Slide 30: BEWI has mission critical operations at KMC’s properties
BEWI has mission critical operations at KMC’s properties BEWI’s geographical exposure (2022) Leading EPS provider Country specific comments EURm Insulation P&C Country #1 C ▪ Denmark accounts for ~7% of total revenues and is a (market share / market position) (market share / market position) Other s
Slide 31: Appendix: Market view and detailed asset descriptions
1 INTRODUCTION 2 KMC PROPERTIES 3 BOND COLLATERAL SUMMARY APPENDIX: MARKET VIEW AND A DETAILED ASSET DESCRIPTIONS R RISK FACTORS 31
Slide 32: Finland: Logistics and industrial market overview
Finland: Logistics and industrial market overview Macro indicators for Finland Market levels by region Enare 6.8% inflation in 3.5% interest rate 6.8% unemployment May 2023 as of June 2023 (ECB) rate forecasted for 2024 Stock Vacancy Prime yield Prime rent Q4 2022 Sqm (%) (%) (EUR/sqm)1 Rovaniemi 1
Slide 33: Mastotie 7, Kuopio FI
Mastotie 7, Kuopio FI Property highlights Property highlights Size building 5,051 sqm Size land 23,093 sqm Enare WAULT 6.0 years GRI NOK 5.8m Extension 10 years Rovaniemi CPI adjusted 100% Contract Triple net lease Parent, Insula AS (full term + 3 Tenant profile & location benefits Uleåborg Guarante
Slide 34: Torvantie 18, Sastamala FI
Torvantie 18, Sastamala FI Property highlights Property highlights Size building 15,985 sqm Size land 55,624 sqm Enare WAULT 17.0 years GRI NOK 10.6m Extension 2 x 5 years Rovaniemi CPI adjusted 100% Contract Triple net lease Tenant profile & location benefits Uleåborg Guarantee TopCo Finland (24 mo
Slide 35: Pajakatu 6, Sastamala FI
Pajakatu 6, Sastamala FI Property highlights Property highlights Size building 5,275 sqm Size land 30,946 sqm Enare WAULT 17.0 years GRI NOK 3.8m Extension 2 x 5 years Rovaniemi CPI adjusted 100% Contract Triple net lease Tenant profile & location benefits Uleåborg Guarantee TopCo Finland (24 months
Slide 36: Muurlantie 438, Muurla FI
Muurlantie 438, Muurla FI Property highlights Property highlights Size building 4,482 sqm Size land 18,178 sqm Enare WAULT 17.0 years GRI NOK 3.3m Extension 2 x 5 years Rovaniemi CPI adjusted 100% Contract Triple net lease Tenant profile & location benefits Uleåborg Uleåborg Guarantee TopCo Finland
Slide 37: Netherlands: Logistics and industrial market overview
Netherlands: Logistics and industrial market overview Macro indicators for the Netherlands Rent levels by region Area Annual EUR/sqm 6.1% inflation in 3.5% interest rate 3.8% unemployment 1 Schiphol Airport 85 – 95 May 2023 as of June 2023 (ECB) rate forecasted for 2023 Groningen 2 Amsterdam 65 – 11
Slide 38: Nieuweweg 235, Wijchen NL
Nieuweweg 235, Wijchen NL Property highlights Property highlights Size building 31,949 sqm Size land 72,421 sqm WAULT 9.8 years GRI NOK 14.6m c Extension 5 + 5 years Groningen CPI adjusted 100% Contract Triple net lease Tenant profile & location benefits Amsterdam Guarantee Parent, Synbra B.V (full
Slide 39: Textielstraat 30, Oldenzaal NL
Textielstraat 30, Oldenzaal NL Property highlights Property highlights Size building 13,199 sqm Size land 50,874 sqm WAULT 9.8 years GRI NOK 5.2m c Extension 5 + 5 years Groningen CPI adjusted 100% Contract Triple net lease Tenant profile & location benefits Amsterdam Guarantee Parent, Synbra B.V (f
Slide 40: Kanaalstraat 107, Someren NL
Kanaalstraat 107, Someren NL Property highlights Property highlights Size building 25,950 sqm Size land 43,643 sqm WAULT 9.8 years GRI NOK 12.1m c Extension 5 + 5 years Groningen CPI adjusted 100% Contract Triple net lease Tenant profile & location benefits Amsterdam Guarantee Parent, Synbra B.V (fu
Slide 41: De Kalkovens 10, Zwartsluis NL
De Kalkovens 10, Zwartsluis NL Property highlights Property highlights Size building 8,662 sqm Size land 12,201 sqm WAULT 9.8 years GRI NOK 3.5m c Extension 5 + 5 years Groningen CPI adjusted 100% Contract Triple net lease Tenant profile & location benefits Amsterdam Guarantee Parent, Synbra B.V (fu
Slide 42: Denmark: Logistics and industrial market overview
Denmark: Logistics and industrial market overview Macro indicators for Denmark Rent levels by region 2.9% inflation in 3.1% interest rate 5.0% unemployment May 2023 as of June 2023 rate forecasted for 2023 Base rent Yield level Area (DKK/sqm) (%) 1 Copenhagen 650 4.25 - 5.00 Aalborg 0.3% forecasted
Slide 43: Tungevej 2-4, Hvide Sande
Tungevej 2-4, Hvide Sande Hvide Sande Property highlights Property highlights Size building 2,807 sqm Size land 6,224 sqm WAULT 11.1 years GRI NOK 1.4m Extension 10 years CPI adjusted 100% Contract Triple net lease Aalborg Guarantee Parent, Insula AS (full term + 3 Tenant profile & location benefits
Slide 44: Constantiavej 31 and Århusgade 24
Constantiavej 31 and Århusgade 24 Property highlights Property highlights Size building 12,106 sqm Size land 42,573 sqm WAULT 11.1 years GRI NOK 6.4m Extension 10 years CPI adjusted 100% Contract Triple net lease Aalborg Guarantee Parent, Insula AS (full term + 3 Tenant profile & location benefits m
Slide 45: Havrevænget 1, 9500 Hobro
Havrevænget 1, 9500 Hobro Property highlights Property highlights Size building 5,070 sqm Size land 15,378 sqm WAULT 15.0 years GRI NOK 3.5m Extension 3 years CPI adjusted 100% Contract Triple net lease Aalborg Guarantee - Tenant profile & location benefits ▪ BEWI Flamingo A/S, part of BEWI Group, i
Slide 46: Østerled 30, 4300 Holbæk
Østerled 30, 4300 Holbæk Property highlights Property highlights Size building 9,469 sqm Size land 41,503 sqm WAULT 15.0 years GRI NOK 4.4m Extension 3 years CPI adjusted 100% Contract Triple net lease Aalborg Guarantee - Tenant profile & location benefits ▪ BEWI Flamingo A/S, part of BEWI Group, sp
Slide 47: Torvegade 41, 7160 Tørring
Torvegade 41, 7160 Tørring Property highlights Property highlights Size building 5,739 sqm Size land 9,572 sqm WAULT 5.0 years GRI NOK 2.6m Extension 3 years CPI adjusted 100% Contract Triple net lease Aalborg Guarantee - Tenant profile & location benefits ▪ BEWI Denmark A/S and the brand BEWI Flami
Slide 48: Tvilhovej 8, 6752 Tvilhov
Tvilhovej 8, 6752 Tvilhov Property highlights Property highlights Size building 16,931 sqm Size land 84,825 sqm WAULT 12.4 years GRI NOK 7.3m Extension 3 years CPI adjusted 100% Contract Triple net lease Aalborg Guarantee - Tenant profile & location benefits ▪ Styropack, part of BEWI Group, focusing
Slide 49: Kidnakken 13, 4930 Maribo
Kidnakken 13, 4930 Maribo Property highlights Property highlights Size building 8,396 sqm Size land 56,000 sqm WAULT 12.4 years GRI NOK 2.8m Extension 3 years CPI adjusted 100% Contract Triple net lease Aalborg Guarantee - Tenant profile & location benefits ▪ Styrolit, part of BEWI Group, focusing o
Slide 50: Fabriksvej 3 and 4, 9640 Farsø
Fabriksvej 3 and 4, 9640 Farsø Property highlights Property highlights Size building 21,891 sqm Size land 46,357 sqm WAULT 9.3 years GRI NOK 10.7m Extension 4 years CPI adjusted 100% Contract Triple net lease Aalborg Guarantee Parent, Inwido (full term) Tenant profile & location benefits ▪ Outline V
Slide 51: Rogalandsvej 3, 7900 Nykøbing Mors
Rogalandsvej 3, 7900 Nykøbing Mors Property highlights Property highlights Size building 21,393 sqm Tødsø Size land 35,509 sqm WAULT 9.3 years GRI NOK 9.3m Elsø Extension 4 years CPI adjusted 100% Contract Triple net lease Aalborg Guarantee Parent, Inwido (full term) Tenant profile & location benefi
Slide 52: Lundagervej 20, Hedensted
Lundagervej 20, Hedensted Property highlights Property highlights Size building 7,959 sqm Size land 33,722 sqm WAULT 15.0 years GRI NOK 5.3m Extension 5 + 5 years CPI adjusted 100% Contract Triple net lease Aalborg Guarantee TopCo Denmark (24 months + VAT) Tenant profile & location benefits ▪ Jackon
Slide 53: Risk factors
1 INTRODUCTION 2 KMC PROPERTIES 3 BOND COLLATERAL SUMMARY APPENDIX: MARKET VIEW AND A DETAILED ASSET DESCRIPTIONS R RISK FACTORS 53
Slide 54: Risk factors (I/IV)
Risk factors (I/IV) An investment in the Bonds involves inherent risks. These risks include, but are not limited to, risks attributable to KMC Properties ASA (the "Issuer") and KMC Properties AS and its subsidiaries (excluding any Excluded Subsidiaries (as defined in the term sheet relating to the B
Slide 55: Risk factors (II/IV)
Risk factors (II/IV) Risks related to the Group's growth strategy General The Group has a strategy for growth and considers itself to be well positioned to pursue further growth opportunities as and when such opportunities should arise. With a dual focus on growth and profitability, the Group intend
Slide 56: Risk factors (III/IV)
Risk factors (III/IV) The Group may from time to time be subject to legal claims from tenants, tax authorities and other third parties. The Group cannot predict with certainty the outcome or effect of any such claim or other legal or arbitration proceedings. The ultimate outcome of any legal or arbi
Slide 57: Risk factors (IV/IV)
Risk factors (IV/IV) Risks related to the Bonds Risks related to the admission to trading The Issuer has undertaken to ensure that the Bonds are admitted to trading on a regulated market within certain stipulated time periods, as defined in the terms and conditions of the Bonds. There is a risk that
Slide 58: KMC Properties
KMC il PROPERTIES
KMC Properties — Debt Investor Presentation (June 2023) on 6ix