Wihlborgs Fastigheter Ab · OMXSTO:WIHL

Wihlborgs Fastigheter Ab — Q1 2023 Earnings Presentation

59 slides from Wihlborgs Fastigheter Ab's earnings presentation, Apr 25, 2023

  1. Slide 1: Q1 report 2023

    Q1 report 2023 Ulrika Hallengren, CEO and Arvid Liepe, CFO 25 April 2023

  2. Slide 2: Summary Q1 2023

    Summary Q1 2023 ✓ Rental income +22% ✓ Operating surplus +20% ✓ Positive net letting ✓ Increased occupancy rate ✓ Higher financing costs ✓ Stable balance sheet ✓ Access to liquid funds ✓ Continuing to invest for the future 2

  3. Slide 3: Results January-March 2023

    Results January-March 2023 • Rental income increased by 22% to SEK 971 million (795) • Operating surplus increased by 20% to SEK 667 million (557) • Income from property management decreased by 2% to SEK 457 million (467) • Result for the period amounted to SEK 255 million (816), corresponding to ea

  4. Slide 4: Rental income January-March

    Rental income January-March 2022 - 2023 Rental income Jan-Mar 2022 795 Aquisitions 47 Currency effect 12 Index 76 Service income 29 Completed projects, new leases and renegotiations 12 Rental income Jan-Mar 2023 971 4

  5. Slide 5: Net letting

    Net letting Q1 Q1 SEKm 2023 2022 New leases 77 53 Terminations 72 26 Net letting 6 28 5

  6. Slide 6: New leases Q1 2023 – a selection

    New leases Q1 2023 – a selection 6

  7. Slide 7: Net letting quarterly

    Net letting quarterly 120 100 80 60 40 20 0 -20 -40 -60 -80 -100 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 New leases Terminations Net 7

  8. Slide 8: Net letting rolling 12 months

    Net letting rolling 12 months 160 140 120 100 80 60 40 20 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 -20 8

  9. Slide 9: Solid customers

    Solid customers City of Helsingborg City of Malmö Danish Building and Property Agency Danske Bank 20% Revenues from top ten tenants Ericsson Lund University Malmö University Skåne Regional Council 24% Swedish Social Insurance Agency Revenues from public tenants Trygg Hansa Insurance 9

  10. Slide 10: Rental growth

    Rental growth Rental growth entire property stock like-for-like* 01-04-2023 01-04-2022 01-04-2023 01-04-2022 SEK m SEK m Percent SEK m SEK m Percent Rental value 4,191 3,465 +21.0 Rental value 3,768 3,398 +10.9 Rental income 3,860 3,168 +21.8 Rental income 3,532 3,129 +12.9 *Exkluding project & land

  11. Slide 11: Increased value in the portfolio

    Increased value in the portfolio 60 000 50 000 40 000 30 000 SEK m 20 000 10 000 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Q1 11

  12. Slide 12: Changes in market value properties

    Changes in market value properties SEK m Carrying amount 1 January 2023 55,179 Acquisitions 20 Investments 391 Properties sold - Changes in value -28 Currency translations 139 Carrying amount 31 March 2023 55,701 12

  13. Slide 13: Portfolio – the entire property stock

    Portfolio – the entire property stock 1 April, 2023 Market value Op. Surplus* Occupancy Running Yield fully SEK m SEK m rate, % yield, % let, % Total excl. projects and 53,139 2,968 94 5.6 6.1 land Total 55,701 2,975 92 5.3 5.9 Wihlborgs * Excluding property admin 13

  14. Slide 14: Portfolio – Office properties

    Portfolio – Office properties 1 April, 2023 Market value Op. Surplus* Occupancy Running Yield fully SEK m SEK m rate, % yield, % let, % Malmö 19,263 1,000 95 5.2 5.5 Helsingborg 8,533 463 91 5.4 6.1 Lund 8,345 483 94 5.8 6.3 Copenhagen 10,314 573 95 5.6 6.0 Total 46,455 2,520 94 5.4 5.9 * Excluding

  15. Slide 15: Portfolio – Logistics/Production

    Portfolio – Logistics/Production 1 April, 2023 Market value Op. Surplus* Occupancy Running Yield fully SEK m SEK m rate, % yield, % let, % Malmö 2,044 135 92 6.6 7.2 Helsingborg 3,469 246 89 7.1 8.2 Lund 271 18 98 6.7 6.8 Copenhagen 901 50 95 5.5 5.9 Total 6,685 448 91 6.7 7.6 * Excluding property a

  16. Slide 16: Portfolio running yield, excl. property admin

    Portfolio running yield, excl. property admin. 6,5 6,3 6,3 6,2 6,1 5,9 5,8 5,7 5,7 5,6 Percent 5,5 5,4 5,4 5,4 5,3 5,3 5,1 5,1 5,1 4,9 4,7 4,5 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Q1 Excl. project and land 16

  17. Slide 17: Wihlborgs in the region

    Wihlborgs in the region Malmö Helsingborg Lund Copenhagen 633,000 m2 648,000 m2 262,000 m2 702,000 m2 103 properties 108 properties 34 properties 62 properties 40 % of property value 22 % of property value 16% of property value 22 % of property value 22,159 SEK m property value 12,408 SEK m property

  18. Slide 18: Acquisitions

    OBS, väntar på högupplöst bild på nya danska fastigheterna Acquisitions

  19. Slide 19: Tomaten 1

    + Tomaten 1 17 000 m2 Total property value SEK 20 m March 15 2023 19

  20. Slide 20: Financials

    a a o = ) = a = om ty

  21. Slide 21: Income statement

    Income statement SEK m Q1 2023 Q1 2022 Rental income 971 795 Operating surplus 667 557 Income property management 457 467 Change in value of properties -28 221 Change in value of derivatives -99 340 Pre-tax profit 330 1,028 Profit for the period 255 816 21

  22. Slide 22: Consolidated balance sheet

    Consolidated balance sheet, SEK m 31-03-2023 31-03-2022 Investment properties 55,701 50,618 Right-of-use assets 145 148 Other fixed assets 394 383 Derivatives 604 374 Current receivables 406 329 Liquid assets 224 316 Total assets 57,474 52,168 Equity 23,642 22,769 Deferred tax liability 5,266 4,819

  23. Slide 23: Key figures

    Key figures 31-03-2023 31-03-2022 Equity/assets ratio, percent 41.1 43.6 Leverage properties, percent 48.5 45.8 Interest coverage ratio, multiple 3.4 7.3 Per share, SEK EPRA net disposal value 76.90 74.06 EPRA net reinstatement value 92.08 88.52 Earnings per share 0.83 2.65 EPRA EPS 1.58 1.35 23

  24. Slide 24: EPRA NRV

    EPRA NRV Per share 90 80 70 60 Average annual growth: 50 16 percent adjusted for dividend SEK 40 30 20 10 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Q1 24

  25. Slide 25: Stable financial position

    Stable financial position Equity/Assets % Financial targets 45,0 40,0 • Max. loan-to-value 60% 35,0 • Min. equity/assets 30% 30,0 • Min. interest coverage 2.0 multiple 25,0 Interest coverage, multiple Loan-to-value % 60 8,0 7,0 55 6,0 5,0 4,0 50 3,0 2,0 45 1,0 0,0 40 sep-18 sep-19 sep-20 sep-21 sep-

  26. Slide 26: Strong earnings relative to borrowings

    Strong earnings relative to borrowings Net debt/EBITDA 12,0 10,0 8,0 Multipler 6,0 4,0 2,0 0,0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Q1 26

  27. Slide 27: Current financing, March 2023

    Current financing, March 2023 Total debt: SEK 27.0 bn 9% 49% 42% Bank loans Danish mortgage loans Bonds 27

  28. Slide 28: Structure of interest and loan maturities

    Structure of interest and loan maturities Interest maturity Loan maturity Loan amount Average interest Credit agreement Utilised Matures year SEK m rate % SEK m SEK m 2023 15,991 4.03 820 820 2024 1,788 1.43 5,834 5,067 2025 1,788 1.44 11,983 9,650 2026 1,252 1.62 603 603 2027 1,806 3.27 602 602 >20

  29. Slide 29: Market rate development

    Market rate development % Stibor 3M & Cibor 3M 2022-2023 % Stibor 3M & Cibor 3M Q1 2023 4,000 3,500 3,400 3,000 3,200 2,500 2,000 3,000 1,500 2,800 1,000 0,500 2,600 0,000 -0,500 2,400 jan-2022 mar-2022 maj-2022 jul-2022 sep-2022 nov-2022 jan-2023 mar-2023 dec-2022 feb-2023 Stibor 3m Cibor 3m Stibor

  30. Slide 30: Interest rate sensitivity

    Interest rate sensitivity Effect of a change in market rates on the average interest rate, % Effect of a change in market rates on the interest cover ratio, multiple Multiple 3,50 % 7,00 3,00 6,00 2,50 Average interest rate 5,00 Interest cover ratio 2,00 4,00 1,50 3,00 1,00 2,00 1,00 0,50 0,00 0,00

  31. Slide 31: Fixed interest period and loan maturity

    Fixed interest period and loan maturity Fixed interest period, years Loan maturity, years 7 7,0 6 6,0 5 5,0 4 4,0 3 3,0 2 2,0 1 1,0 0 0,0 jun-18 dec-18 jun-19 dec-19 jun-20 dec-20 jun-21 dec-21 jun-22 dec-22 jun-18 dec-18 jun-19 dec-19 jun-20 dec-20 jun-21 dec-21 jun-22 dec-22 31

  32. Slide 32: Available funds

    Available funds Unutilized credit facilities plus liquid funds, SEK mn 4500 4000 3500 3000 2500 2000 1500 1000 500 0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 2021 2021 2022 2022 2022 2022 2023 32

  33. Slide 33: Sustainability

    2 = 5 SS) - om a) —_ D = DQ

  34. Slide 34: Certified properties Q1 2023

    Certified properties Q1 2023 Huggjärnet 13 – house 2, Malmö Miljöbyggnad level Silver Huggjärnet 13 – house 3, Malmö Miljöbyggnad level Silver Polisen 5, Helsingborg Hindbygården 8, Malmö Miljöbyggnad In-Use level Silver Miljöbyggnad level Gold Bronsdolken 25, Malmö Hermes 10, Helsingborg Miljöbyggn

  35. Slide 35: Large energy savings in Österport

    Large energy savings in Österport 7 • Newly aquired property • Energy savings Q1 2023 compared to Q1 2022 ✓ District heating -35% ✓ Electricity -17% • Measures taken by Wihlborgs employees 500000 260000 400000 240000 300000 220000 200000 200000 100000 0 180000 Q1 -22 Q1 -23 Q1 -22 Q1 -23 District he

  36. Slide 36: Investments in progress

    Investments in progress

  37. Slide 37: Ground breaking ceremonies

    Ground breaking cermonies • 24 Jan, Helsingborg Rausgård 21 - Nederman • 1 Feb, Helsingborg Plåtförädlingen 15 - Springhill • 2 Mar, Lund Tomaten 1 - Inpac • 9 Mar, Malmö Bläckhornet 1 (VISTA) 37

  38. Slide 38: Projects investments January-March 2023

    Projects investments January-March 2023 SEK m Investments 391 Projects in progress 3,416 Invested by period end -860 Remains to invest 2,556 38

  39. Slide 39: Bläckhornet 1 - VISTA

    Bläckhornet 1 - VISTA Malmö, Hyllie 15,000 m2 mobility hub + 16,600 m2 office Completion Q4 2024/Q4 2025 SEK 884 m 39

  40. Slide 40: Kunskapen 1 - SPACE

    Kunskapen 1 - SPACE Oatly Lund, Science Village 6,000 m2 Completion Q4, 2023 SEK 244 m 40

  41. Slide 41: Posthornet 1, phase 2

    Posthornet 1, phase 2 Lund, City 9,900 m2 Completion Q4, 2025 SEK 448 m 41

  42. Slide 42: Tomaten 1

    Tomaten 1 Inpac Lund 6,400 m2 Completion Q2 2024 SEK 137 m 42

  43. Slide 43: Rausgård 21

    Rausgård 21 Nederman Helsingborg 25,000 m2 Completion Q3 2024 SEK 420 m 43

  44. Slide 44: Huggjärnet 13

    Huggjärnet 13 Automationspartner Soprema CYTO365 Helsingborg 8,000 m2 Completion phase 1 Q2, 2023 SEK 108 m 44

  45. Slide 45: Snårskogen 5

    Snårskogen 5 DOKA Helsingborg 2 200 m2 Completion Q2 2023 SEK 60 m 45

  46. Slide 46: Snårskogen 5

    Snårskogen 5 Rollco Helsingborg 3 600 m2 Completion Q3 2024 SEK 78 m 46

  47. Slide 47: Plåtförädlingen

    Plåtförädlingen 15 Springhill Helsingborg 8,700 m2 Completion Q4, 2023 SEK 141 m 47

  48. Slide 48: Sunnanå 12:54

    Sunnanå 12:54 Malmö 17,000 m2 Completion Q1, 2025 SEK 302 m 48

  49. Slide 49: Future investments

    Future investments

  50. Slide 50: Vetskapen 1, Ideontorget, Polisen 7, Västerbro

    Vetskapen 1 Ideontorget Polisen 7 Västerbro Lund Lund, Ideon Helsingborg Lund, Västerbro 4 700 m2 GFA 16 000 m2 GFA 6 000 m2 GFA 70 000 m2 GFA TBD TBD TBD TBD TBD TBD TBD TBD 50

  51. Slide 51: Börshuset 1

    Börshuset 1 Malmö 5 500 m2 Completion TBD (Q3 2025) TBD 51

  52. Slide 52: Tomaten, Bilrutan, Örja, Sunnanå 12:26

    Tomaten 1 Bilrutan 5 Örja, Pedalen m fl Sunnanå 12:26 Lund Landskrona Landskrona Malmö (Burlöv) 2 500 m2 GFA 14 000 m2 GFA TBD 4 000 m2 GFA TBD TBD TBD TBD TBD TBD TBD TBD 52

  53. Slide 53: Stenåldern, Benkammen, Spännbucklan, Hindbygården

    Stenåldern 7 Benkammen 16 Malmö Malmö 5 000 GFA 5 500 GFA TBD TBD TBD TBD Stenåldern 7 Spännbucklan 9 Hindbygården 9 Malmö Malmö 5 000 GFA 2 500 GFA TBD TBD TBD TBD 53

  54. Slide 54: Nyhamnen

    Nyhamnen

  55. Slide 55: Higher density at Slagthuset

    Higher density at Slagthuset 55

  56. Slide 56: Hamnen 16:xx, Kranen, Dockan, Naboland

    Hamnen 16:xx – Kranen 15 Dockan Naboland 3 Smörkajen Malmö, Nyhamnen Malmö, Dockan Malmö, Dockan Malmö 13 000 m2 GFA TBD TBD 8 000 m2 GFA TBD TBD TBD TBD Miljöbyggnad Guld Miljöbyggnad Guld Miljöbyggnad Guld Miljöbyggnad Guld

  57. Slide 57: Summary Q1 2023

    Summary Q1 2023 ✓ Rental income +22% ✓ Operating surplus +20% ✓ Positive net letting ✓ Increased occupancy rate ✓ Higher financing costs ✓ Stable balance sheet ✓ Access to liquid funds ✓ Continuing to invest for the future 57

  58. Slide 58: Q&A

    Q&A 58

  59. Slide 59: Wihlborgs

    H Wihlborgs

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