Pandox Ab Class B · OMXSTO:PNDX_B
Pandox Ab Class B — Q4 2023 Earnings Presentation
20 slides from Pandox Ab Class B's earnings presentation, Feb 8, 2024
Slide 1: Strong end to the year & raised dividend
Year-end 2023 presentation Strong end to the year & raised dividend Liia Nõu, CEO Anneli Lindblom, CFO Anders Berg, Head of IR 8 February 2024
Slide 2: Investment highlights
Strategic position Investment highlights A global & Hotel properties Revenue-based growing market only leases 1 2 3 We are active in travel and We invest exclusively in hotel We have long-term revenue- tourism- a global and dynamic properties and create value based leases with a good industry with s
Slide 3: Our business model
Strategic position Our business model To own, improve and lease hotel properties to strong hotel operators under long-term revenue-based leases Property Property Portfolio Sustainability Management development optimisation Active and engaged ownership based on deep hotel expertise Year-end report Q4
Slide 4: Two operational models
Strategic position Two operational models Leases Own Operations Transformation tool Core Year-end report Q4 2023 8 February 2024 4
Slide 5: A strong and well-diversified business portfolio
Strategic position A strong and well-diversified business portfolio Pandox Leases Own Operations Group 159 139 20 Hotel properties Leased properties Operated properties 35,851 30,201 5,650 Rooms Rooms Rooms SEK 69.0bn SEK 57.2bn SEK 11.8bn Property market value Property market value Property market
Slide 6: Strong end to the year and raised dividend
Quarter in brief Strong end to the year and raised dividend Stable and positive quarter and year ― More meetings, increased international travel and higher activity in larger cities Solid growth in revenue and NOI Cash earnings negatively affected by higher current tax Strong cash-flow and solid fin
Slide 7: New leases signed
Quarter in brief New leases signed Hotel Pomander Nürnberg Hotel Mayfair Copenhagen - Scandic Hotels - Strawberry Hotels with Hobo brand - Total renovation completed - Total renovation ongoing - Long revenue-based lease with minimum level - Long revenue-based lease with minimum level - Lease comes i
Slide 8: RevPAR above 2019
Business segment Leases RevPAR RevPAR above 2019 1200 1,014 1,011 942 960 1000 891 909 879 777 760 800 661 646 531 600 400 200 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2019 2020 2021 2022 2023 Year-end report Q4 2023 8 February 2024 8
Slide 9: ADR continues to drive RevPAR recovery
Hotel market development (vs 2019) ADR continues to drive RevPAR recovery September YTD 45% ADR December YTD 45% ADR Edinburgh 45% Norway Regional 29% Edinburgh 42% Norway Regional 29% Oslo 24% London 22% Oslo 22% UK Regional 28% 35% UK Regional 28% 35% London 23% Brussels 14% Stockholm 5% Brussels
Slide 10: Important steps within sustainability
Quarter in brief Important steps within sustainability Science Based Targets approved by SBTi in November Own Operations (Scope 1 and 2): reduction of greenhouse gas emissions by 42 percent by 2030 Leases (Scope 3): reduction of greenhouse gas emissions by 25 percent by 2030 MSEK 320 climate transit
Slide 11: Investing for growth
High quality project pipeline Investing for growth Business Type of Adding MSEK +300 in Property Location Operator Size Completed segment investment NOI per year by 2026 Pandox Hotel Nuremberg, Leases (from 1 (Scandic from 1 Total renovation Large Q3 2023 Pomander Germany March 2024) March 2024) Ren
Slide 12: Continued strong operational performance
Financial summary Continued strong operational performance Continued good LFL growth Revenue and result (MSEK) 23Q4 22Q4 YoY LFL1) Pandox Group revenue 1,838 1,623 13% 8% Total revenue-based rents of MSEK 324 (286) Pandox Group NOI 989 882 12% 7% Continued positive operational momentum Leases revenu
Slide 13: Higher yields offset by higher cashflows
Property portfolio Higher yields offset by higher cashflows MSEK Comment: Higher cashflows explained mainly by a strong average price development in major parts of the portfolio Approximately 90 percent of the properties externally valued in the past 12 months, based on value Reclassifications: Hote
Slide 14: Positive yield gap
1 2 3 4 5 0 8 19'Q4 6 5.41 7 6.41 20'Q1 20'Q2 20'Q3 Leases 20'Q4 21'Q1 21'Q2 Property portfolio Own operations 21'Q3 21'Q4 22'Q1 22'Q2 Average yield, % 22'Q3 22'Q4 23'Q1 23'Q2 23'Q3 23'Q4 7.02 6.09 Positive yield gap 2 4 7 0 1 5 6 8 Year-end report Q4 2023 19'Q4 3 2.6 20'Q1 20'Q2 20'Q3 20'Q4 21'Q1 2
Slide 15: Stable LTV, resilient ICR and solid cash position
Key financial metrics Stable LTV, resilient ICR and solid cash position Loan-to-value, % Interest-cover-ratio, times Cash and unutilised (Policy interval 45-60%) (Rolling twelve month basis) credit facilities, MSEK 60 5 6,000 4.1 55 5,000 4 4,215 50 4,000 46.0 46.6 3 2.7 45 3,000 3,147 2 40 2,000 Un
Slide 16: Well-proven financing strategy
Financial summary Well-proven financing strategy Well-proven financing strategy built on long-term Capital structure, per 31 December 2023 relationships with banks and shareholders Equity and mortgage-backed bank loans are Pandox’s sources of financing Net interest-bearing debt, MSEK 32,960 No marke
Slide 17: Solid financial position
Financial summary Solid financial position Refinancings in the corresponding amount of Key metrics (at end of period) 23Q4 22Q4 YoY approx. MSEK 15,337 completed in 2023, where of MSEK 1,527 in Q4 Net interest-bearing debt, MSEK 32,960 33,964 -0% EPRA NRV, MSEK 36,976 37,694 -2% MSEK 8,760 of debt m
Slide 18: Positive tone for 2024
Market outlook Positive tone for 2024 Some RevPAR growth expected in 2024 Strong event calendar in Europe with Euro 2024 in Germany and Olympic games in France Business on the books so far higher than same time last year Companies plan to increase their travel budgets 2024 Lower inflation and (hopef
Slide 19: Q&A
Q&A Year-end report Q4 2023 Credit: @FotoReza 8 February 2024 19
Slide 20: Pandox AB (publ) contact and forward-looking statements
Pandox AB (publ) Box 15 Tel: +46 8 506 205 50 Forward-looking statements. This presentation contains forward-looking statements. Such statements are subject SE-101 20 Stockholm www.pandox.se to risks and uncertainties as various factors, many of which are beyond the control of Pandox AB (publ), may