Slide 1: Interim report presentation
Interim report presentation 13 July, 2017 Anders Nissen, CEO Liia Nõu, CFO Forward-looking statements This presentation contains forward- looking statements. Such statements are subject to risks and uncertainties as various factors, many of which are beyond the control of Pandox AB (publ), may cause
Slide 2: Sustained good growth and profitability
Sustained good growth and profitability 1 Good growth in both larger and regional cities. 20% 2 Higher occupancy and higher average prices. Growth in total cash earnings1 3 Continued improvements in Brussels. 20% 2% 29% Growth in NOI Growth in NOI Return on equity2 Property Management3 Operator Acti
Slide 3: Hotel Berlaymont
Hotel Berlaymont “Excellent location in the middle of the EU quarters” 212 City Business Acquired 2017 rooms centre Repositioning to Product development New management independent profile and productivity PANDOX – EXCELLENCE IN HOTEL OWNERSHIP & OPERATIONS 3
Slide 4: Solid increase in net operating income (total NOI)
Solid increase in net operating income (total NOI) Several positive factors supported + Well performing acquisitions + Broad based positive underlying demand + Continued recovery in Brussels Net +101m - Neutralisation of Easter effect PANDOX – EXCELLENCE IN HOTEL OWNERSHIP & OPERATIONS 4
Slide 5: Portfolio overview
Portfolio overview Well-diversified portfolio dominated by leases Focused strategy on large hotel properties in the upper-medium to high-end segments in strategic locations. 3% Active ownership model combining a large, attractive portfolio with excellent operational skills. 8% 8% 35% Property Operat
Slide 6: Good underlying growth in key markets
Good underlying growth in key markets Only a select number of markets with full market data for Q2 2017 Key markets 12% 10% 10% 8% 6% 4% 2% 2% 0% -2% -4% -4% -6% Stockholm Oslo Copenhagen PANDOX – EXCELLENCE IN HOTEL OWNERSHIP & OPERATIONS 6
Slide 7: Financial highlights
Financial highlights Continued good growth in earnings Key figures Comments on the quarter Q2 Q2 chg FY Property Management: LFL1 growth in (MSEK) 2017 2016 % 2016 revenue and net operating income of Revenue 3 percent and 2 percent, respectively. Property Management (Note 1) 568 464 22 1,787 Net ope
Slide 8: Solid organic growth
Solid organic growth Property Management Net operating income Rental income Apr-Jun 2017 in % (MSEK) Q2 Q2 FY 10% 2017 2016 2016 Rental income 547 451 1,717 4% Other property income 21 13 70 9% 47% Costs* -83 -66 -292 Net operating income 485 398 1,495 12% *Including property administration costs 19
Slide 9: Continued improvements in Brussels
Continued improvements in Brussels Operator Activities Net operating income Revenues Apr-Jun 2017 in % (MSEK) Q2 Q2 FY 2% 3% 1% 1% 2017 2016 2016 Revenue 555 536 2,158 Costs -462 -448 -1,866 22% 39% Gross Profit 93 88 292 Add: Depreciation included in costs 46 37 147 Net operating income 139 125 439
Slide 10: Property portfolio
Property portfolio Value increases reflecting underlying performance Change in value (MSEK) Comments per 30 June, 2017 Total property portfolio market value amounted to MSEK 39,868. Average valuation yield for Investment Properties was 5.7 (5.7) percent and for Operating Properties 7.3 (7.5) percent
Slide 11: Financing and capital structure
Financing and capital structure Solid growth in EPRA NAV and maintained financial flexibility Liquid funds and long-term unutilised EPRA Net Asset Value (MSEK) Loan to value (net) (%) credit facilities (MSEK) EPRANAV per share, SEK Mandate from the AGM 2017 to issue new shares up to a maximum of 20,
Slide 12: The main drivers for growth in cash earnings
The main drivers for growth in cash earnings Opportunistic acquisitions Operations Portfolio investments Quality portfolio Market growth Organic growth PANDOX – EXCELLENCE IN HOTEL OWNERSHIP & OPERATIONS 12
Slide 13: Q&A
Q&A PANDOX – EXCELLENCE IN HOTEL OWNERSHIP & OPERATIONS 13
Slide 14: Financial calendar
Financial calendar 13 July 2017 Interim report Q2 10 November 2017 Interim report Q3 15 February 2018 Year-end report 2017 Pandox AB (publ) Box 15 SE-101 20 Stockholm Sweden Visiting address: Vasagatan 11, 9th floor Stockholm Sweden www.pandox.se PANDOX – EXCELLENCE IN HOTEL OWNERSHIP & OPERATIONS