Catena Ab · OMXSTO:CATE
Catena Ab — Q3 2022 Earnings Presentation
26 slides from Catena Ab's earnings presentation, October 2022
Slide 1: The leading property company in logistics
Q3 2022 Presentation October 2022 The leading property company in logistics 1
Slide 2: Q3 2022 Presentation
Q3 2022 Presentation October 2022 Q3 2022 Presentation Jörgen Eriksson, CEO Sofie Bennsten, CFO David Silvesjö, Chief Treasury Officer 2
Slide 3: Agenda
Q3 2022 Presentation October 2022 Agenda 1. Summary of latest quarter 2. Business overview 3. Business update 4. Financial update 5. Takeaway from today 6. Q&A 3
Slide 4: Q3 2022 summary: Standing strong in a changing world
Q3 2022 Presentation October 2022 Q3 2022 summary: Standing strong in a changing world • Rental income increased due to acquisitions, Profit from Property Management projects and indexation SEK M +18% • CPI-index for September: 10.6% 824 719 723 • Optimizing the portfolio 571 627 611 • Divestment in
Slide 5: Business overview
Q3 2022 Presentation October 2022 2. Business overview Sector-leading portfolio and prime customer base 5
Slide 6: Business overview: Portfolio
Q3 2022 Presentation October 2022 Business overview Portfolio Regions # of Lettable Fair Value Rental Economic Contractual Surplus properties area Tsqm SEK M value SEK letting ratio annual rent, ratio %2 M % SEK M1 Gothenburg 20 349 4,604 259 99 256 84 Helsingborg 26 480 5,107 310 97 302 78 Jönköpin
Slide 7: Business overview: Customer base
Q3 2022 Presentation October 2022 Business overview Customer base Customer segments Customers Share of contractual value 6% 2% DHL 11% 2% 3% Postnord 7% 4% ICA 6% 39% 6% 3% Martin & Servera Boozt 4% Nowaste Logistics 3% Intervare 2% 17% Dagab 2% Menigo Foodservice 2% Nordic Transport Group 2% Top 10
Slide 8: Business overview: Market update
Q3 2022 Presentation October 2022 Business overview Market update CONTINUED DEMAND KEEPS VACANCY DOWN Take-up per segment Europe, % • Demand supported by strategic decisions to Other make supply chains more resilient and 7% Production support decarbonization 16% • E-commerce take-up has decreased fr
Slide 9: Business update
Q3 2022 Presentation October 2022 3 Business update Attractive growth enabled by our long-standing customer relationships, unique landbank and strong financial position 9
Slide 10: Business update: Current development
Q3 2022 Presentation October 2022 Business update Current development Part of Dansered 1:64, Härryda Planeraren 2, Borlänge Tenant: Menigo, MM-Sport Tenant: ICA Investment: 1 056 SEK M Investment: 90 SEK M Sqm: 84 060 Sqm: 3 570 Finalized: Q4 2024 Bunkagården Mellersta 1, Helsingborg Statorn 31, Nor
Slide 11: Business update: Future development
Q3 2022 Presentation October 2022 Business update Future development E-City Engelholm Örebro South (JV, 34%) Ängelholm Törsjö 490 000 sqm land 920 000 sqm land Pending zoning plan Pending zoning plan Logistics position Söderåsen Stockholm South Bjuv Nykvarn/Södertälje 565 000 sqm land 450 000 sqm la
Slide 12: Business update: Acquisitions and divestments
Q3 2022 Presentation October 2022 Business update Acquisitions and divestments • Acquisitions • Vrangelsro 5:4 in Halmstad • Logistiken 3 in Umeå • Part of Dansered 1:64 in Härryda (land) • Ånsta 2:10 in Nykvarn (land) +100 • Ånsta 2:11 in Nykvarn (land) SEK M Earnings from • Divestments divestments
Slide 13: Business update: Leasing update
Q3 2022 Presentation October 2022 Business update Leasing update Net leasing Maturity profile – Letting ratio contractual annual rent SEK M 100,0% 45% 99,0% 250 200 40% 98,0% 150 35% 97,0% 100 30% 50 96,0% 25% 0 20% 95,0% -50 -100 15% 94,0% -150 10% 2017 2018 2019 2020 2021 2022 93,0% YTD 5% 2017 20
Slide 14: Business update: Sustainability
Q3 2022 Presentation October 2022 Business update Sustainability • Ramping up certification of portfolio • 24 percent of lettable now enviromentally certificated totalling ~511,000 sqm • An 5 percentage point increase quarter-to- quarter • Strong results in ”Great Place to Work” • Kept our high resu
Slide 15: Financial update
Q3 2022 Presentation October 2022 4. Financial update Strong cashflows and balance sheet provides flexibility and opportunity 15
Slide 16: Financial update: Income
Q3 2022 Presentation October 2022 Financial update Income Rental Income Net Operating Surplus Profit from Property Management SEK M SEK M SEK M +12 % +11 % +18 % 1 095 824 1 387 1 004 1 264 719 723 1 183 903 911 1 150 627 1 091 828 821 611 1 027 571 892 671 440 2017 2018 2019 2020 2021 Q1-Q3 Q1-Q3 2
Slide 17: Financial update: Rental development
Q3 2022 Presentation October 2022 Financial update Rental development • Continued strong like-for-like rental growth 9M 2022 YoY • Divestment of Fröträdet 1 in Q2 impacted by 1% Like-for-like1 4.5 % • One-off effect related to tentant relocation in Q1 2022 Project development 3.1 % Acquisitions 5,8
Slide 18: Capital and debt management
Q3 2022 Presentation October 2022 Financial update Capital and debt management LTV & Cost of debt SEK M Capital structure 100% 4,0% 30 000 65% 3,5% 25 000 80% 55% 3,0% 2,5% 20 000 60% 45% 2,0% 15 000 40% 1,5% 35% 10 000 1,0% 20% 5 000 25% 0,5% 0% 0,0% 0 15% 2017 2018 2019 2020 2021 Q3 2022 2017 2018
Slide 19: Capital and debt management
Q3 2022 Presentation October 2022 Financial update Capital and debt management 3.3y Debt Debt Maturity Financing Split Maturity SEK M 4 500 4 000 13% 3 500 1.4 Billion 13% 3 000 SEK 2 500 Total Cash 2 000 2% SEK 10.9 Bn Holdings 57% 1 500 15% 1 000 500 0 2.3 Billion 0-1 yr 1-2 yr 2-3 yr 3-4 yr 4-5 y
Slide 20: Interest maturity profile
Q3 2022 Presentation October 2022 Financial update Interest maturity SEK M 5 000 Interest maturity profile 4 500 4 000 CATENA HAS BUILT A RESILITENT FINANCI AL POSITION 3 500 3 000 • Significant hedge against rising interest 2 500 rates 2 000 1 500 • 68% hedge ratio amounting to 7,4 Billion SEK, 1 0
Slide 21: Stress test
Q3 2022 Presentation October 2022 Financial update Stress test CATENA RESILIENT AG AI NST A MARKET DROP OF 40% SEK M Scenario – 1 (Yields expand) 30 000 100% 90% • Yield requirements expands by 2 percentage points 25 000 80% • Impact - A drop in market value of 40% corresponding 70% 20 000 60% 55% t
Slide 22: Capital deployment
Q3 2022 Presentation October 2022 Financial update Capital deployment SEK M 1,937 Acquisitions (SEK M) Transactions 3 000 2 500 2 000 906 Divestments (SEK M) 1 500 1 000 500 0 -500 2017 2018 2019 2020 2021 YTD Development CAPEX 2022 Capex 998 (SEK M) Aqcuisitions capex (net) Development capex 22
Slide 23: Property valuation
Q3 2022 Presentation October 2022 Financial update Property valuation EPRA NIY 4.7 % 35 000 7,00% 30 000 6,00% 25 000 5,00% 20 000 4,00% 15 000 3,00% 10 000 2,00% 5 000 1,00% 0 0,00% 2017 2018 2019 2020 2021 YTD 2022 Total assets IFRS property value EPRA NIY 23
Slide 24: Takeaway from today
Q3 2022 Presentation October 2022 5. Takeaway from today 24
Slide 25: Takeaway from today
Q3 2022 Presentation October 2022 Takeaway 1. Strong position with favourable long-term trends from today 2. Resilient financial profile driven by strong cash flows and low LTV 3. Unique growth opportunities through landbank and selective acquisitions 25
Slide 26: Q&A
Q3 2022 Presentation October 2022 Q&A Jörgen Eriksson, CEO Sofie Bennsten, CFO David Silvesjö, Chief Treasury Officer 26