Slide 1: The preferred real estate partner for logistics and industrial companies
Industrielaan 39, Olen Belgium The preferred real estate partner for logistics and industrial companies KMC Properties ASA Q4 2023 results presentation | 22 February 2023
Slide 2: A strong platform for continued growth
Q4 AND FULL-YEAR 2023 HIGHLIGHTS Key figures A strong platform for continued growth Gross Asset WAULT % EPRA Value net yield NOK 6.2 bn 7.3% 11.4 years Q4 2023 ▪ Completed NOK 209m acquisition of two of the seven properties in the last part of the large transaction with BEWI ASA 55.6% 53.2% EPRA LTV
Slide 3: Accretive transaction with BEWI to be completed first half 2024
Accretive transaction with BEWI to be completed first half 2024 NOK 2 billion property transaction with BEWI ASA Three phase transaction: NOK million 1. NOK 2bn agreement with BEWI ASA following H1 2024 competitive process, bid range 5.9% - 6.7% yield. Completed 625 1,885 Initial acquisition of NOK
Slide 4: Portfolio breakdown post BEWI-transaction
Portfolio breakdown post BEWI-transaction Flexible units Industry critical Tenant critical Total portfolio # of units 50 13 8 71 % of GAV 69% 22% 9% 100% Gross yield 7.4% 7.7% 8.4% 7.6% # in industrial clusters 43 9 4 56 Example assets 5% 100% Storemyra 200, Mongstad NO 4.9% Havneveien 1, Uthaug NO
Slide 5: Major refinancing transforming KMC Properties' capital structure
Major refinancing transforming KMC Properties’ capital structure Improving lending relationships Debt structure and interest margin improvement KMC Properties ASA NOK million, % interest margin KMCP III KMCP IV KMCP VI KMCP VII KMCP AS KMCP II AS AS AS AS AS 3.743 Senior Danske 3.582 Secured SB1 SR
Slide 6: Strengthened and diversified Northern European foothold; attractive opportunities
Strenghtened and diversified Attractive opportunities Northern European foothold in changing market conditions Pro-forma Q4 2023 Debt structure with attractive terms compared to observed acquisition yields 17 tenants 71 properties 680,000 sqm 11.8 yrs wault 7% - 8% observed acquisition yields 2,3 %
Slide 7: Financial review
Industriparkveien 35, Jøsnøya, Hitra Norway Financial review 7
Slide 8: Demonstrating strong operational leverage
Q4 2023 Financial highlights Demonstrating strong operational leverage Profit and loss1 ▪ 34% rental income increase Q4’23 vs Q4’22 NOK million Q4 2023 Q4 2022 2023 2022 • Weighted average CPI adjustment of 7.5% Rental income 107 80 409 273 on 1 January 2023 Property expenses -2 -1 -5 -3 Net operati
Slide 9: Significant non-cash items impacting profits in the quarter
Significant non-cash items impacting profits in the quarter Q4 2023 non-cash impact break down NOK million ▪ Losses from interest and currency 35 swaps NOK 47 million in the quarter 27 ▪ Amortised debt issue costs and bond discount negative with NOK 7 million ▪ Unrealised foreign exchange gains NOK
Slide 10: Financial and operational visibility improving
Financial and operational visibility improving Annualized run-rate1 NOK million, 12 months forward Q4’23 Q4’23 Q3’23 Q2’23 Q1’23 Q4’22 ▪ Increase in rental income run rate from pro forma Q3’23 due BEWI property acquisitions Rental income 498 460 421 424 412 371 ▪ Property related expenses flat due t
Slide 11: Earnings driven by income from property management
Earnings driven by income from property management Earnings per share (EPS) last twelve months NOK per share 0.25 0.37 0.33 0.16 0.31 0.25 -0.22 Net income Changes in value Unrealized IFRS EPS Adjustments for Adjustments Adj. EPRA from property of investment financials and LTM Q4 2023 contribution t
Slide 12: Financial terms
Financial terms Debt terms 30 Sept 2023 31 Dec 2023 Q4‘23Pf ▪ Shareholder loan taken out with RCF at 100bps lower margin Volume Margin Floating All-in Volume Margin Floating All-in All-in ▪ Drawdown of DKK 86m (of total 193m) Nordea facility with margin 1.08% and fixed reference rate of 3.04% ▪ Cons
Slide 13: Maintaining a conservative leverage ratio
Maintaining a conservative leverage ratio LTV per quarter end and post BEWI transaction Debt maturity profile (NOKm) 31 December 2023 Proforma 1,911 Bond BEWI trans. 56.4% Bank 55.6% 57.4% 900 Adj. 53.2%1 700 661 161 New Nordea 1,011 debt 243 700 500 30 Sept ‘23 31 Dec ‘23 31 Dec ’23 0-1 yrs 1-2 yrs
Slide 14: Comfortable headroom to ICR covenants
Comfortable headroom to ICR covenants ICR forecast Rolling 12m ICR 3M IBOR %2 2.0 2.0 5.0 4.7 4.7 1.9 4.7 1.9 4.5 1.8 4.5 4.3 1.8 1.9 4.1 1.8 1.7 4.0 1.8 4.0 4.03.9 3.8 3.7 1.7 1.8 1.8 3.8 3.6 3.5 3.4 1.6 3.5 3.2 3.1 3.2 2.9 1.5 Covenant 3.0 2.8 1.4 2.5 1.3 ICR 2.0 1.2 ICR pro forma1 1.1 Covenant 1.
Slide 15: Per share development since listing
Per share development since listing NAV1 per share / Run rate earnings2 per share Earnings per share NAV/sh x Shares outstanding at period end ▪ Shares outstanding increased the last twelve months from 324m to 394m per Q4 242m 242m 285m 285m 324m 344m 344m 394m 2023 ▪ Earnings per share up from 0.44
Slide 16: Outlook
Søndre Industrivegen 50, Oppdal Norway Outlook 16
Slide 17: Resilient strategy - high operational leverage
Resilient strategy - high operational leverage Strategic focus areas Demonstrated operational leverage NOK million Acquisitions CAPEX 498 Rental income 460 372 Net income from 43% 40% property management 39% 49% 46% Financing cost 49% 12% 11% 10% Operating cost Capital optimization Greenfield Q4 202
Slide 18: On track to deliver NOK 8bn 2024 target
On track to deliver NOK 8bn 2024 target Gross asset value development and target NOK million A strong platform for continued growth ▪ Lean organization with modest increases in ~30% operational costs CAGR ▪ Robust property portfolio with strong tenants, and CPI-adjusted contracts ▪ Reduced interest
Slide 19: Q&A
Ritzlebener Strasse 1, Mechau Germany Q&A
Slide 20: Slide 20