Stendoerren Fastigheter Ab Class B · OMXSTO:STEF_B
Stendoerren Fastigheter Ab Class B — Stendörren Fastigheter — Q2 2022 Earnings Presentation
26 slides from Stendoerren Fastigheter Ab Class B's earnings presentation, September 2022
Slide 1: Second Quarter 2022
SECOND QUARTER 2022 STENDÖRREN
Slide 2: Introduction: Business idea, market opportunity and financial objectives
INTRODUCTION BUSINESS IDEA, MARKET OPPORTUNITY AND FINANCIAL OBJECTIVES MARKET BUSINESS OPPORTUNITY IDEA The properties are strategically located in growth areas (population and economic), mainly in Greater Stockholm and Stendörren creates profitable growth in net the Mälardalen region. asset value
Slide 3: Operational Highlights Q2
OPERATIONAL HIGHLIGHTS Q2 Excluding bankruptcy of second largest tenant Exploria NET LETTING (MSEK) CONTINUED STRONG NET LETTING 16 15 17 14 14 14 • Strong net letting in 6 consecutive quarters - vacancy below 10% • Continued strong renegotiation of lease agreements - 22% average increase in rent
Slide 4: Financial Highlights Q2
FINANCIAL HIGHLIGHTS Q2 ROE (%) FINANCIAL KEY FIGURES WELL ABOVE TARGET • ROE 22% 26 26 • NAV growth 25% 22 20 20 18 20 REFINANCINGS OF SECURED BANK DEBT 16 15 14 16 • Substantially strengthened liquidity (~ SEK 1 billion in available 12% 9 9 10 9 liquidity) 8 7 7 • Substantially extended averag
Slide 5: Snapshot of Stendörren
SNAPSHOT OF STENDÖRREN PROPERTY VALUE1 RENTAL VALUE2 NOI YIELD3 LTV4 SEK SEK 5.5% 47% 12.4 bn 741 m LETTABLE AREA1 NAV5 LEASE DURATION6 BUILDING RIGHTS1 SQ.M. SEK SQ.M. 3.8 years 800,000 5,167 million 636,000 1) Property portfolio as per June 30, 2022 2) Estimated earnings capacity as of June 30, 20
Slide 6: Snapshot of Stendörren – Continued
SNAPSHOT OF STENDÖRREN – CONTINUED • Stendörren creates profitable growth in net asset value by actively managing, developing and acquiring properties. Our focus is on logistics, warehouse and light industrial properties in growth regions, STOCKHOLM NORTH BUSINESS primarily in urban areas. IDEA • In
Slide 7: Stendörren History in Short
STENDÖRREN HISTORY IN SHORT PROPERTY VALUE Q2 2022 PROPERTY VALUE 2021 12.4 BN PROPERTY 11.7 VALUE 2020 BN 141 PROPERTY 9.5 PROPERTIES VALUE 2019 BN 135 PROPERTY VALUE 2018 8.9 PROPERTIES 123 PROPERTY VALUE 2017 8.4 BN 122 BN PROPERTIES 2022 PROPERTY VALUE 2016 6.5 121 PROPERTIES 2021 BN PROPERTY VA
Slide 8: Good Reasons to Own a Stendörren Share
4 GOOD REASONS TO OWN A STENDÖRREN SHARE 1. STABLE CASH FLOW 2. SUSTAINABLE GROWTH • High yielding logistics, warehouse and light industrial • Properties strategically located in growth areas (population and economic) in the properties with long leases. Greater Stockholm and the Mälardalen region. •
Slide 9: 1. Stable Cash Flow
1. STABLE CASH FLOW DIVERSIFICATION WITH FOCUS ON GREATER STOCKHOLM PROPERTY PORTFOLIO OVERVIEW • Stendörren has a property portfolio of SEK 12,395m, with a property yield of 5.5%1 as per 30 June 2022. • Rental value2 of SEK 741m with an economic occupancy rate of 91% as per 30 June 2022. • Lease ag
Slide 10: 1. Stable Cash Flow – Continued
1. STABLE CASH FLOW – CONTINUED DIVERSIFIED TENANT BASE LARGEST TENANTS AS PER Q2 2022 LEASE MATURITY BY RENTAL INCOME Rental Rental area, Share of total Tenant income, 447 th. sq.m. rental income SEKm 187 Coop Logistics AB 66 130 10% 398 Alfa Laval Tumba AB 14 20 2% 157 Åtta.45 Tryckeri AB 12 11 2%
Slide 11: 2. Sustainable Growth
2. SUSTAINABLE GROWTH WHY FOCUS ON THE STOCKHOLM REGION? POPULATION STOCKHOLM REGION STOCKHOLM REGION 3 000 000 2022 – 2040 • 78% By 2040 a total of 11.3m inhabitants are expected to live in Sweden. Forecasted CAGR of 0.77% Forecasted population growth of • The highest growth in absolute numbers and
Slide 12: 2. Sustainable Growth – Continued
2. SUSTAINABLE GROWTH – CONTINUED STRONG GROWTH PROSPECTS FUTURE • Continued expansion in greater Stockholm and Mälardalen. • Furthermore, new markets are continuously being evaluated, with the most recent acquisitions being three industrial assets in Helsinki, Finland. • Continued focus on off mark
Slide 13: 3. Value Growth in Projects
3. VALUE GROWTH IN PROJECTS PROJECT PORTFOLIO WITH LARGE POTENTIAL • Fully developed up to an additional 636,000 sqm can be created, evidencing a substantial increase to the current portfolio of standing assets • The vast majority of the building rights are located in the greater Stockholm region. •
Slide 14: 3. Value Growth in Projects – Ongoing Projects
3. VALUE GROWTH IN PROJECTS – CONTINUED ONGOING PROJECTS 77% WITHIN GREATER • Development projects within STOCKHOLM REGION logistics, light industrial, and residential ongoing. • First estimated construction completion estimated for Q4 2022. 14 Investor Presentation
Slide 15: Tegelbruket in Botkyrka
3. VALUE GROWTH IN PROJECTS – CONTINUED TEGELBRUKET IN BOTKYRKA TEGELBRUKET • Example of underutilized asset in urban location. • Acquired in 2016 as a cash flow generating property, significant value unlocked through rezoning allowing for residential construction on underutilized parking lot. • Bui
Slide 16: Sustainability - Achievements
SUSTAINABILITY - ACHIEVEMENTS CLIMATE IMPACT KG CO2/SQ.M ENERGY INTENSITY KWH/SQ.M. DISTRIBUTION OF ENERGY SOURCES 6,00 140 41% 17% Renewables Non-renewables REDUCED CLIMATE IMPACT IMPROVED ENERGY EFFICIENCY BETWEEN 2017-2021 (KgCO2,e/sq.m) 135 PER SQ.M BETWEEN 2017-2021 5,00 130 2% 4% 4,00 5% 125 7
Slide 17: New Sustainability Strategy Adopted 2022
NEW SUSTAINABILITY STRATEGY ADOPTED 2022 Added focus areas (Future proofing) Generally increased ambitions 17 Investor Presentation
Slide 18: 4. Finance: Highlights from Q2 Report
4. FINANCE HIGHLIGHTS FROM Q2 REPORT NET LETTING (MSEK) ECONOMIC OCCUPANCY (%) Excluding bankruptcy of second 17 largest tenant Exploria 16 15 14 14 14 91 8 90 89 89 89 1 88 88 88 88 88 1 87 87 87 87 -2 -2 -4 -6 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 -11 2019 2020 2021 2022 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q
Slide 19: 4. Finance: Financial Targets
4. FINANCE – CONTINUED FINANCIAL TARGETS ROE (%) NAV GROWTH (%) 37 35 26 26 29 22 25 20 20 20 23 23 18 22 22 16 16 15 17 17 14 15 15% 13 12 12% 9 10 11 11 9 9 10 8 9 9 7 7 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2018 2019 2020 2021
Slide 20: 4. Finance – Continued
4. FINANCE – CONTINUED 12 MONTHS TO JUNE 2022 PROPERTY VALUE: LTV: 12,395MSEK NET OPERATING INCOME: 47% 522MSEK LETTABLE AREA: RENTAL INCOME: NET PROFIT: 800,000 M2 EQUITY RATIO: 687MSEK 1,107MSEK 42% 20 Investor Presentation
Slide 21: Net Income Walk
4. FINANCE – CONTINUED NET INCOME WALK 12 MONTHS TO 30 JUNE 2022 1 600 1 400 1103 1 200 300 1 000 1107 800 769 82 600 165 400 77 142 200 0 Rental value Vacancy Property expenses Central admin Financing costs Value changes Taxes Net income 21 Investor Presentation
Slide 22: Debt Funding
4. FINANCE – CONTINUED DEBT FUNDING DEBT FUNDING OVERVIEW LOAN MATURITY INTEREST FIXING SEKm SEKm 11% 2 500 3 000 2 700 2 131 2 500 2 000 1 794 18% 1 425 2 000 1 500 1 500 1 340 1 000 1 050 71% 717 900 1 000 500 434 192 165 500 0 0 0 Bank debt Sr Unsecured bond Hybrid bond 2022 2023 2024 2025 2026 >
Slide 23: Share Value and Key Equity Ratios
4. FINANCE – CONTINUED SHARE VALUE AND KEY EQUITY RATIOS SEKm SEK/share KEY EQUITY RATIOS JUNE 2022 JUNE 2021 Share price, SEK 155.20 205.00 6 000 350 Equity per share, SEK 1) 170.15 133.09 Long term nav per share, SEK 198.76 159.09 300 5 000 1) Book equity excluding hybrid capital per share 250 4 0
Slide 24: Share Performance and Ownership Overview
4. FINANCE – CONTINUED SHARE PERFORMANCE AND OWNERSHIP OVERVIEW SEK Share price (lhs) SEK SHAREHOLDER % OF CAPITAL % OF VOTES 350 Turnover (rhs) 200 000 000 180 000 000 STENDÖRREN REAL ESTATE AB 40,6 58,0 300 160 000 000 ALTIRA AB 10,7 14,8 250 140 000 000 LÄNSFÖRSÄKRINGAR FASTIGHETSFOND 11,8 6,6 SE
Slide 25: Assessed Earnings Capacity
4. FINANCE – CONTINUED ASSESSED EARNINGS CAPACITY 741 182 • According to the company’s assessment as of Q1 2022, the total rental income (after deductions for vacancies and discounts) on a rolling 12- month basis amounts to approximately SEK 741 million. 559 • The company also estimates that current
Slide 26: Thank You!
THANK YOU!
Stendörren Fastigheter — Q2 2022 Earnings Presentation on 6ix