Corem Property Group Ab Class A · OMXSTO:CORE_A
Corem Property Group Ab Class A — Investor Day (November 2024)
68 slides from Corem Property Group Ab Class A's investor day presentation, Nov 20, 2024
Slide 1: 20 November 2024
20 November 2024
Slide 2: Agenda
Agenda 09:00 Corem, our portfolio and prospects Break Extended / Kista special • Klövern, Richard Langerfors and Mathias Wallestam • Stockholm Stad, Staffan Ingvarsson • Kista Limitless, Johan Thomsson Questions - moderated by Henrik Mitelman 12:00 Lunch
Slide 3: Corem
Corem 3
Slide 4: Creating possibilities
ABOUT COREM Creating possibilities With solid expertise in managing commercial real estate, but above all in creating premises which support and enable our customers’ businesses to grow. Our core is in-house, locally based and sustainable property management. Complemented by our expertise in propert
Slide 5: Property portfolio geographically focused to attractive locations
Property portfolio geographically focused to attractive locations in major cities and growth regions SEKbn 25 20 15 10 5 Office 50% Other 17% 0 Retail 10% Logistics 23% *incl. Borås **incl. Kalmar ***incl. Eskilstuna Lettable area by type, %
Slide 6: Sustainability
Sustainability corem |
Slide 7: A leader in sustainable property management
SUSTAINABILITY A leader in sustainable property management For Corem, sustainability means combining economically sustainable business operations with high business ethics, social responsibility and environmental consideration. Through collaboration with both suppliers and tenants, we strive to be a
Slide 8: Energy efficiency
82 28% Engagement Emissions from Index building activities per sqm reduced significantly – and with a framework 100% for circularity. Staff training in code of conduct and business ethics Energy efficiency Proven track-record in progressively lowering energy 50+ consumption. Target of reaching 65 kW
Slide 9: Portfolio overview
Portfolio overview 9
Slide 10: Rental market, letting, and tenant base
Rental market, letting, and tenant base 10
Slide 11: Rental Market, in brief
Rental Market, General trends in rental market reports IMPORTANT FACTORS IN THE: Office segment in brief Significant spread in rental levels • Flexibility and efficiency within respective areas depending • Location and communications on standard and micro-location important A/B/C-locations • Premi
Slide 12: Net letting
Net letting 99 Net letting SEKm Jan-Sep 2024, 140 SEKm 120 400 100 80 60 Contract value of 40 signed lettings Jan-Sep 2024, SEKm 20 86 0 -20 -40 Economic occupancy -60 rate, % Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2021 2022 2023 2024 Trailing 12 months 4,346 Rental value, SEKm
Slide 13: Examples of lettings
GÖTEBORG IZI Solution 2600 sq.m LINKÖPING Polismyndigheten 4600 sq.m NYKÖPING GÖTEBORG NEW YORK Trafikverket 1993 sq.m Freemelt The Visualize Group Kustbevakningen Chenel Capital 5000 sq.m Superstate JKS Restaurants Ellipsis Labs Garden Intelligence Injective Labs Epidemic Sound 5 500 sqm Examples o
Slide 14: Examples of lettings
STOCKHOLM – KISTA STOCKHOLM – KISTA OHB Sweden 4800 sq.m Mycronic 6000 sq.m STOCKHOLM – KISTA Transcom 1100 sq.m Examples of lettings Selection during the period, Q3 2024
Slide 15: Tenant base
Tenant base 3,100 Rental value per sq.m SEK Contract maturity SEKm No. of tenants 2 000 1400 1 800 5,500 1200 1 600 1 400 1000 1 200 No. of leases 800 1 000 800 600 18 600 400 200 400 200 Share of public sector – 0 in the office segment, % 2017 2018 2019 2020 2021 2022 2023 Q3 2024 2025 2026 2027 20
Slide 16: Uppsala
STOCKHOLM SEGMENT Uppsala Uppsala is Sweden’s fourth largest city and home to one of the country’s highest ranked universities. It forms part of one of Europe’s most innovative regions with world-leading industries and companies within life science, energy and environment. Corem’s premises are locat
Slide 17: Västerås and Örebro
EAST SEGMENT Västerås and Örebro Västerås is a well established entrepreneurial and industrial city. It is located along E18, with strong communications and good commute options to Stockholm. The city center offers a wide variety of shops, restaurants and cafes and the city has a direct proximity to
Slide 18: North Stockholm: Kista and Arlandastad
STOCKHOLM SEGMENT North Stockholm: Kista and Arlandastad The commercial part of Kista houses a large number of companies, research and academia. The portfolio here holds mainly offices but also industrial and logistics. Märsta and Arlandastad are long well establised, and highly attractive logistic
Slide 19: Mid Stockholm: Solna and Täby
STOCKHOLM SEGMENT Mid Stockholm: Solna and Täby Solna and Täby both benefit from its proximity to Stockholm city, while offering locations which are well connected and accessible for transports, by car and public transport. In Solna, Corem offers full service buildings Solna Gate and Frösunda Gate.
Slide 20: South Stockholm: Globenområdet, Västberga and Sätra
STOCKHOLM SEGMENT South Stockholm: Globenområdet, Västberga and Sätra The area around Globen has long been a hub for events and is a quickly growing commercial destination. Close to Gullmarsplan, vicinity to the city and unique communications. Västberga and Sätra both strong and well established log
Slide 21: Norrköping, Linköping and Nyköping
EAST SEGMENT Norrköping, Linköping and Nyköping Corem is the largest commercial property owner in Norrköping, Linköping and Nyköping, which are all growth areas and well connected to the Stockholm region. Norrköping is an established industrial, trading and shipping city. Linköping is one of Sweden'
Slide 22: Gothenburg
WEST SEGMENT Gothenburg Gothenburg is Sweden's second largest city, known for its seaside location. A large part of Swedish imports and exports is shipped via Gothenburg's port, which is the largest in the Nordic region. Some of Scandinavia's largest industrial groups have their origins and headquar
Slide 23: Malmö, Lund and Halmstad
WEST SEGMENT Malmö, Lund and Halmstad Malmö, Sweden's third largest city, is in constant motion. Malmö is active in business and development regionally, nationally and internationally. Lund is one of the region’s largest and one of Sweden's oldest cities. The city has positioned itself as an innovat
Slide 24: Copenhagen
INTERNATIONAL SEGMENT Copenhagen Copenhagen is the capital of Denmark and Scandinavia's largest city. Copenhagen is well situated for business, trade and logistics, with excellent connections by sea, air, rail and road. 38 79% 75 1 Lettable area, Economic Rental value, Market value, tsqm occupancy,
Slide 25: New York
INTERNATIONAL SEGMENT New York Corem owns three project properties in Manhattan in New York: 28&7, 1245 Broadway and 417 Park Avenue. The projects 28&7 and 1245 Broadway, both new construction of high-quality office buildings, are nearing completion. In both projects, the exterior has been completed
Slide 26: Investment activity
Investment activity 26
Slide 27: Creating value through property development
Creating value through property development Investments keeping the portfolio attractive and efficient over time. Current focus on refining the existing portfolio and tenant adaptations.
Slide 28: Stockholm North - Kista
K1, Residential in Nacka Strand Research Hub, Uppsala Stockholm North - Kista Nattskiftet 12, 14, Västberga, Stockholm Majorna 219:7, Conversion from single- to multi-tenant
Slide 29: Urban development
Urban development The Globen area - Stockholm Västerås Uppsala Business Park Stockholm North - Kista
Slide 30: Potential Building rights
Potential Building rights CONSTRUCTION RIGHTS ON 31 DECEMBER in Stockholm 707 157 640 160 605 rT 9 13 ai 6 5 4 é 0 30
Slide 31: Investments
Investments, 3.1 SEKbn 2.8 SEKbn 2.9 SEKbn 2.0 SEKbn trailing 12 months 2020 2021 2022 2023 3500 3000 2500 2000 1500 1000 500 1,350 SEKm 0 R12, Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q3 2024 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 20
Slide 32: Holding in Klövern
Holding in Klövern • Residential development • Holding value SEK 1,475 million
Slide 33: Property transactions
Transactions, sq.m t.sq.m Property transactions 2 550 2 250 1 950 Transactions are an integral part of Corem’s 1 650 business model. They provide means to focus, 1 350 improve, and adapt the portfolio to market 1 050 conditions; 750 - property types - geographic concentration 450 - portfolio size 15
Slide 34: Average yield and market value
Average yield and market value SEKm SEK 17 Value of divestments made during 2023-2024 90000 to date, SEKbn 80000 6,0% 5,9% 5,9% 5,9% 15 70000 5,8% 60000 5,5% Decreases in value 5,5% 50000 5,4% since peak levels 5,3% 5,2% (Q1 2022 – Q2 2024) 40000 5,0% % 5,0% 5,0% 4,9% 30000 20000 4,5% 3 10000 Invest
Slide 35: Financial position
Financial position 35
Slide 36: Financial position
Financial position Interest-bearing liabilities • Interest-bearing liabilities reduced by SEK 1.4 billion during Q1-Q3 SEKbn 2024 50 • Maintained or improved key figures such as LTV and adjusted equity 40 ratio, despite negative value changes in properties 30 • Redemption and repurchasing of bonds m
Slide 37: Financing
LTV Equity ratio* Financing % % 70 54% 50 43% 45 60 40 50 35 40 30 25 30 20 20 15 10 10 5 0 0 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2017 2018 2019 2020 2021 2022 2023 Q3 2023 2024 2024 *Adjusted equity ratio Average interest rate % Interest coverage ratio 5.0 6,0 3,5 1.8 % 5,5 3 5,0 4,5 2,5 4,0 2 3,5 3,0 1,5 2
Slide 38: Outstanding bond volumes
Outstanding bond volumes Outstanding bond volumes Breakdown of interest-bearing 14 000 16% liabilities, per q3 2024 4% 15% 15% 15% 12 000 14% 14% 20% 14% 14% 10 000 Unsecured bonds Bank loans 76% Commercial paper 12% 8 000 11% 6 000 Bond maturity 10% SEKm 2 000 1 811 4 000 1 500 1 300 1 250 8% 1 050
Slide 39: Optimizing the financial position
Optimizing the financial position Tools to reach, and later be able to surpass, our financial targets • Reposition and refinance bonds, optimizing structure as well as bond durations • Repayment of expensive loan structures, restructuring of expensive secured bank debt • Possibility of buy back of h
Slide 40: Business outlook
Business outlook y y A : : : | i: . | 4 Wh dd} Vf 7 / / ef heey) corem
Slide 41: Taking Corem into the improved business climate
Taking Corem into the improved business climate and keep building for the future Using our strengths Focus areas • Geographically well positioned to growth markets • Improve occupancy rate • Competitive portfolio in attractive locations • Improve operating margin • Attractive land bank and developme
Slide 42: Locally tailored plans to create increased profitability
Locally tailored plans to create increased profitability and develop the existing portfolio • Economic occupancy - proven track-record through substantial net letting • Efficient operations, with local presence • Potential property development, focus on tenant improvements • Increased environmental
Slide 43: Questions
Questions 43
Slide 44: Agenda
Agenda 09:00 Corem, our portfolio and prospects Break Extended / Kista special • Klövern, Richard Langerfors and Mathias Wallestam • Stockholm Stad, Staffan Ingvarsson • Kista Limitless, Johan Thomsson Questions - moderated by Henrik Mitelman 12:00 Lunch
Slide 45: 45
45
Slide 46: Kista – i centrum för Sveriges och Stockholms ekonomiska utveckling
Kista – i centrum för Sveriges och Stockholms ekonomiska utveckling Staffan Ingvarsson VD Stockholm Business Region
Slide 47: Kommunfullmaktige
Kommunfullmaktige Stockholm Business Region AB Stockholm Business Region Gr stadens naringslivs- och ey Stockholms Stadshus AB destinationsbolag med uppgift att utveckla och | marknadsféra Stockholm som etablerings- och x besdksdestination bade lokalt och internationellt. 3 Stockholm Business Region
Slide 48: Kistas position: strategiska teknologier för Sverige och EU
KISTAS POSITION: STRATEGISKA TEKNOLOGIER FÖR SVERIGE OCH EU • Viktig del av Europeiska och svenska strategier framåt är att främja startups och scaleups, särskilt inom deeptech - en viktig motor för innovation och tillväxt. • För att dessa företag ska kunna nå sin fulla potential måste det finnas en
Slide 49: Kista technology areas
Wireless and telecom Semiconductors and power electronics AI & data science Space tech Defence Cybersecurity Nano technology Smart Societies Power & Clean energy 4
Slide 50: Prioriterade internationella investeringar och etableringar 2025
Prioriterade internationella investeringar och etableringar 2025- | dialog med Kista Science City har SBR identifierat féljande omréden Defence, space and cyber Al and data science Power and clean energy Wireless and Telecom M Stockholm The Capital of Scandinavia
Slide 51: Kista – i centrum för Stockholms geografiska utveckling
Kista – i centrum för Stockholms geografiska utveckling
Slide 52: Infrastrukturutbyggnad
Infrastrukturutbyggnad Tunnelbanan forldngs till Barkarby trafikstart dec 2027 = 5.2026 Wy ing @,, : Tvdrbanans Kistagren 202? oO i sane RO ae \ MDiv MI, My %G Férbifarten 2030 SUNDBYBERG b--@ Stockholms stad
Slide 53: Pågående stadsutveckling
» \ OU, Pagdende stadsutvecklin iY AELENELUNIA Planarbete 13. Knarrarsnas 8 1. Mariehamn 14. Tvarbanan, 2. Saima Arvinge 3. Dalhagens bollplan 15. lsafjord 4, Alesund Husby torg och platser Genomférande 5. Rogaland 16. Oslo /] & Odde 17. Kista gard etapp 2 / | 7 Sporthotellet 18. Kista Ang [ 8. Reyk
Slide 54: Kista Wood Tower
Kista Wood Tower Markanvisning och start-pm nov 2023 Sporthotellet Playce Laga kraft april 2094 Arbeten pabérjade Kista dng 4. Kista Square Garden Spadtag maj 2024 Inflyttning pagar - s Bygge av etapp 1 pagar Flera tilltraden
Slide 55: Stockholm – The Capital of Scandinavia
Mi Stockholm The Capital of Scandinavia
Slide 56: Johan Thomsson, VD Kista Limitless
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Slide 57: Disclaimer
DISCLAIMER Kista Limitless AB har tagit fram foljande dokument ” KL Corem Kista 241120” ar en presentation endast avsedd fér Kista Limitless AB . Dokumentet beskriver 6vergripande Kista Limitless planerade verksamhet under 2025. Kista Limitless AB reserverar sig for eventuella tryckfel, beskrivninga
Slide 58: Kista Limitless
BAR GRUNO 8 Sr Te Andra fastighetsbolag * Bildades 2021 Kista Limitless * Corem, Vasakronan, Castellum, Revelop Fastighetsagarnas gemensamma satsning sthimsted Utveckla Kistas naringsliv och stadsutveckling i samverkan med andra nyckelaktérer quasu
Slide 59: Kista challenges
LT MBM NiSe rd * Vakanser yee Ute: Sores kning i maha ae «=Monofunktionellt + Image
Slide 60: Vad händer i Kista?
VAD HANDEFR © KLSTA?
Slide 61: Näringslivsutveckling
MAR INGSLIVSUTVECKLING STARK DET SoM REDANM FINNS! Each innovation area in Kista represents a large market unto A CENTER FOR TRANS- tal art hore tnportanthy thoes arses are shelton integrated into one another as they are the cutting edge FO R M ATI VE T EC H N O LO GY building blocks of transformati
Slide 62: Kistas starka USP:ar
KISTAS STARKA USP:AR Talent from over 90 countries Ericsson, Samsung, Tele2, Fujitsu, Bosch, IBM and Intel 50+ innovative spinoffs, startups and scaleups 60+ current publically funded R&I projects 20 000 people in transformative tech Over 6 000 students on campus A leading European center Top tier a
Slide 63: Nordens största företagskluster
NORDENS STGRSTA FORETAGSKLUSTER + Over 800.000 m2 verksamhetsytor (bland Kista Limitless gare) Mangfacetterat lokalutbud, vilket starker Kistas unicitet Kontor, tillverkning, utbildning, lab, handel, logistik, idrott & halsa + Diversifierad hyresgastmix av bade stérre och mindre foretag dcsivers TV.
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Slide 65: Stadsutveckling
STACSUTVECKLINIG DETTA PAGAR REAM DAG! Bostader ar en nyckel for att fa nattbefolkning som skapar en levande stad, floden pa alla dygnets timmar och okar trygghetskanslan Kista ar Stockholms stérsta , bostadsutvecklingomrade med >8.000 bostader i produktion & plan Inflyttning har redan skett i Kista
Slide 66: Destination Kista
DESTINATION KRISTA —KISTA LIMYTLESS VISTON OM FREMTIDENS MOTESPLATS tf STOCKHOLM P . 3 Kista Limitless verkar for att starka beséksanledningarna till Kista Malsattning att fa fram en konsolidering mellan stakeholders och framdrift av pagaende initiativ: ¢ Utdkad mass- och kongresskapacitet * Evenema
Slide 67: • • • • o o o
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Slide 68: Tack!
TACE!