Dios Fastigheter Ab · OMXSTO:DIOS
Dios Fastigheter Ab — Non-Deal Roadshow (December 2023)
46 slides from Dios Fastigheter Ab's roadshow presentation, Dec 5, 2023
Slide 1: Company presentation
Company presentation December 2023
Slide 2: Key company highlights
Key company highlights Our company. • Diversified SEK 31bn real estate business in Northern Sweden, generating >SEK 2.4bn revenue from inhouse Diversified and sizeable letting and property management, development and transactions 1 real estate company • Significant pipeline with >90,000 sqm under co
Slide 3: Our Company
Our Company Diversified and sizeable real estate company with strong track record 3
Slide 4: Diös develops Sweden's most inspiring cities to create sustainable long-term value
Diös develops Sweden’s most inspiring cities to create sustainable long-term value for all stakeholders TARGET 12% return 50% reduced CO2e Vision Our promise to tenants on equity emissions by 2030 To create Sweden’s most inspiring cities Everything is possible! We want our tenants to do well and eve
Slide 5: Our history
Our history 2022 We report our strongest ever net leasing of SEK 77m 2021 New climate target to halve our carbon dioxide emissions by 2030 in order to reach net zero by 2045 2018 Start-up of our project organisation 2017 Our second largest acquisition of all time increases our property value to SEK
Slide 6: Sizeable office and urban services anchored portfolio in Northern Sweden cities
Sizeable office and urban services anchored portfolio in 10 Northern Sweden cities SEK 31.2bn 359 Fair Value Number of properties SEK 2,446m 6.01% Contracted rental income Valuation yield SEK 19,260 1,621k sqm Value per sqm Leasable area 30% 92% Rental income from public related tenants Occupancy 39
Slide 7: Diös is an evidence-based growth story
Diös is an evidence-based growth story Property value (SEKbn) Contracted rent (SEKbn) 35.0 2.5 2.4 31.1 31.2 2.2 30.0 28.0 2.0 1.9 1.9 1.8 1.8 24.5 1.7 25.0 22.9 20.8 19.4 1.5 20.0 15.0 1.0 10.0 0.5 5.0 0.0 0.0 2018 2017 2019 2020 2021 2022 2017 2018 2019 2020 2021 2022 Q3 2023 Q3 2023 Further growt
Slide 8: Experienced management team
Experienced management team Knut Rost Rolf Larsson Mia Forsgren Sofie Stark CEO since 2014, born 1959 CFO since 2005, member of the Director of Communications and Director of Property Management Executive Management team since Digitization (CCO and CDO) since since 2020, member of Executive 2005, bo
Slide 9: Our Market
Our Market Well positioned to benefit from Northern Sweden’s green transition 9
Slide 10: The Diös city – A 15-minute city in Northern Sweden's growth areas
The Diös city – A 15-minute city in Northern Sweden’s growth areas A city in Sweden that is A university enriches the city A city for shopping and growing with young people, expertise and experiences with a vibrant city with an increasing population, confidence in the future. Leads to centre, attrac
Slide 11: EUR 100bn green investments driving regional growth…
EUR 100bn green investments driving regional growth… 1 Luleå Groupo Fertiberia, Ammonia & fertilizer production, 13 2021 - 2026, SEK 11bn 2 Skellefteå 16 Northvolt, Battery factory, 2018-2023, SEK 40bn 12 1 9 3 Umeå 15 Liquid Winds, Electro fuel, 2023-2026, SEK 2bn 2 SCA, Paper, 2019-2023, SEK 7.5bn
Slide 12: … and boosting employment in our regions
… and boosting employment in our regions Average monthly number of new jobs per average unemployment 1.75 100,000 Job opportunities from green 1.50 investments, representing 1.25 10% Of current 1,000,000 labour force 1.00 0.75 25% Of regional work force estimated to 0.50 work in offices 0.25 2012 20
Slide 13: Increasing demand for offices in Diös cities …
Increasing demand for offices in Diös cities … The role of the office Expected office take-up (sqm) • The city's engine and social hub • The office has become more important for building corporate culture and attracting labour 110,000 • Attractive workplaces in our cities provide increased flows of
Slide 14: … and population growth at inflection point, driving demand for urban services and housing
… and population growth at inflection point, driving demand for urban services and housing Population growth per municipality (index 2002 = 100) 130 >100,000 People estimated to migrate to the 125 Diös regions on the back of green investments in 10 – 15 years, 120 representing … 115 15% of the popul
Slide 15: Our Business
Our Business Attractively yielding portfolio backed by strong tenant base 15
Slide 16: Complementary urban real estate offering
Complementary urban real estate offering Lettable area Contracted rent Business area Rent per sqm p.a.1 Occupancy2 (%) WAULT (years) (k sqm) (SEKm) 359 No. of properties Office 775 1,293 1,868 93% 3.4 Urban services 498 803 1,762 94% 5.2 SEK 31.2 Living 161 202 1,342 94% n.a. Property value, SEKbn O
Slide 17: Resilient portfolio valuation and all-time high occupancy
Resilient portfolio valuation and all-time high occupancy Valuation (SEKbn) Occupancy1 35 10% 100% 31.1 31.2 89% 90% 91% 91% 90% 89% 91% 92% 89% 88% 89% 9% 30 28.0 8% 24.5 75% 25 22.9 7% 20.8 19.4 6% 20 5% 50% 15 13.4 13.7 11.8 12.2 4% 10 3% 25% 2% 5 1% 0 0% 0% 2017 2013 2014 2015 2016 2018 2019 202
Slide 18: Good income diversification and well-balanced tenant structure
Good income diversification and well-balanced tenant structure Rental value, type of premises Rental value, business area 5,426 No. of rental contracts 2% 6% Office Dalarna 8% 16% 17% 30% Urban services Gävle Living Sundsvall Other 10% Åre/Östersund Rental income from public 10% related tenants 53%
Slide 19: Strong rental performance
Strong rental performance Rental growth 614 10.0% 47 Like-for-like rental growth1 551 16 7.5% Rental growth from indexation 93% Of commercial lease contracts have CPI linked indexation 92% Rental income Q3 2022 Net effect of investments Like-for-like growth Rental income Q3 2023 All-time high occupa
Slide 20: Positive letting performance
Positive letting performance Historical net letting (SEKm) 150 SEK 18m Net letting for 9M 2023 100 19 quarters 50 Out of latest 23 quarters saw positive net letting 0 c. 30% Office reversionary potential (50) (100) Q4 Q4 Q4 Q4 Q4 Q3 2018 2019 2020 2021 2022 2023 New letting Terminated contract RTM1
Slide 21: Sensible investment criteria form basis for accretive growth
Sensible investment criteria form basis for accretive growth • Major projects are built with little to no speculation • All new projects are built according to BREEAM, at least level “very good”, -20% to Tenant: Pension Agency Office, Q2 2023, SEK 170m 5,452 sqm. BBR (national law) and Life-cycle GW
Slide 22: Sizeable development pipeline
Sizeable development pipeline Project properties Type City Property type LFA (sqm) Occupancy Investment Produced investment Rental value Completion Environmental category (BREEAM) 50% Projects in progress Of development rights attributable to commercial premises Improvement Borlänge Education/traini
Slide 23: State-of-the-art police station in Umeå - case study
State-of-the-art police station in Umeå - case study Key highlights Summary City • The state-of-the-art police station in Umeå was developed in close cooperation with the Police Authority Umeå • The station boasts unique architecture and meets the high standards set for accessibility, a good working
Slide 24: Clarion Hotel Umeå - case study
Clarion Hotel Umeå - case study Key highlights Summary City • The new Clarion hotel has been designed to be an exciting experiences for both visitors and residents Umeå • Clarion Hotel Umeå features 14,000 square meters spread over 13 floors, 270 hotel rooms, a high-class conference area with 16 mee
Slide 25: Länsförsäkringar Västernorrland - case study
Länsförsäkringar Västernorrland - case study Key highlights Summary City • 1,900 square meters of former retail premises and mall aisles were transformed into flexible and activity-based office Sundsvall space for approximately 75 employees of LF Västernorrland • The new office supports LF Västernor
Slide 26: Our Outlook
Our Outlook Strong operational performance and solid financing mix 26
Slide 27: Strong operating performance though increased financing costs
Strong operating performance though increased financing costs EPRA earnings (SEKm) Per share 5.77 +1.53 (0.35) (0.07) (2.59) +0.27 4.57 (50) (10) 217 816 (366) 645 38 EPRA earnings Change in income Change in Change in Change in Change in EPRA earnings 9M 2022 property costs general costs financing c
Slide 28: Marginal impact from revaluation on EPRA NTA
Marginal impact from revaluation on EPRA NTA EPRA NTA (SEKm) Per share 98.6 +4.6 (2.0) (6.3) +0.2 +0.0 95.0 13,939 645 (283) (890) 13,436 24 2 EPRA NTA FY22 EPRA earnings Dividend Change in Change in FV Change in EPRA NTA property value of derivatives deferred tax Q3 2023 28
Slide 29: Prudent interest rate management
Prudent interest rate management Fixed vs. floating rate debt Financing sources 4.8% Average cost of debt, in line with the marginal cost of debt Fixed 11% Bank loan SEK 798m Floating SFF bond 3% 3% Commercial paper 39% Total liquidity reserve1 Green unsecured bond 61% 83% SEK 3.0bn 51% 100% Interes
Slide 30: Well diversified maturity profile
Well diversified maturity profile Maturity profile1 (SEKm) 2.4 years 7,000 Average debt maturity 6,453 6,000 5,000 2.6 years Average fixed rate maturity2 4,000 3,079 Comment 3,000 2,419 2,000 1,721 • High confidence in refinancing 1Q24 bank maturities by year- 1,135 1,080 end 2023 as banks have 1,00
Slide 31: Conservative balance sheet approach
Conservative balance sheet approach Loan-to-value <55% Stable net debt / EBITDA Interest cover ratio ≥2.0 Comments • Committed to keep ICR ≥2.0 70 13 7.0 and LTV <55% Policy <65% 65 12 6.5 • Balance sheet actively 60 11 6.0 managed via: Target <55% 55 10 5.5 • Postponement of low- 50 9 5.0 yielding
Slide 32: Clear ESG targets
Clear ESG targets Reduced CO2 emission Customer satisfaction 17% 50% 70 >72 FY 22: 16% +6% By 2030 FY 22: 72 -3% Green properties eNPS 16% 55% 48 >45 FY 22: 11% +45% By 2026 FY 22: 48 +0% The environment and climate People Fair business practices • We environmentally certify all our new • As an empl
Slide 33: Outlook
Outlook Great outlook in our market Financial calendar • Green industry transition generates investments, job opportunities and growth for many • Q4 Year-end report 16 Feb 2024 years to come • Q1 Interim report 26 Apr 2024 • Increasing demand for premises and willingness to pay for attractive proper
Slide 34: Appendix – I Q3 2023 results
Appendix – I Q3 2023 results 34
Slide 35: Q3 2023 in a nutshell
Q3 2023 in a nutshell 10.0% 92% SEK 4.57 SEK 95.0 200k sqm Like-for-like rental growth Occupancy EPRA earnings per share (9M 2023) EPRA NTA per share Development pipeline Portfolio performance Financial performance Development & Transactions • 10.0% like-for-like rental growth in Q3 2023 • SEK 4.57
Slide 36: Condensed income statement (Q3 2023)
Condensed income statement (Q3 2023) Income statement Comments 2023 2022 2022 3 mth 12 mth 1 3 mth • Income increase was supported by 10.0% LfL growth Jul-Sep Jul-Sep ∆% Jan-Dec SEKm • Residential indexation, approx. 4% is included in rental income Total income 1 621 559 11% 2,209 • Occupancy rate r
Slide 37: Condensed balance sheet (Q3 2023)
Condensed balance sheet (Q3 2023) 2023 2022 2022 2023 2022 2022 SEKm 30 Sep 30 Sep 31 Dec SEKm 30 Sep 30 Sep 31 Dec Investment properties 31,223 31,106 31,136 Equity 11,655 12,212 12,102 Deferred tax liability 2,325 2,367 2,383 Other non-current assets 82 60 65 Total PP&E and intangibles Provisions
Slide 38: EPRA NAV metrics (Q3 2023)
EPRA NAV metrics (Q3 2023) EPRA Net Asset Value Metrics EPRA NRV EPRA NTA EPRA NDV IFRS Equity attributable to shareholders 11,655 11,655 11,655 Include / Exclude*: i) Hybrid instruments – – – Diluted NAV 11,655 11,655 11,655 Include*: ii.a) Revaluation of IP (if IAS 40 cost option is used) – – – ii
Slide 39: Dividend
Dividend 50% 50% 25% 50% 48% 26% 7.52 50% 7.21 Target payout ratio of profit 6.93 excluding unrealized changes in 6.43 value and deferred taxes 6.05 5.54 3.30 3.52 26% 2.90 3.00 Payout for 2022, departing from policy to maintain a strong 2.00 balance sheet and flexibility to 1.65 invest 2017 2018 20
Slide 40: Appendix – II Segment reporting
Appendix – II Segment reporting 40
Slide 41: Offices portfolio – Overview
Offices portfolio – Overview Rental value, business area SEK 1,293m 775k sqm Contracted rental income Leasable area Dalarna 19% 17% Gävle Sundsvall Östersund/Åre SEK 1,868 93% Rental per sqm1 Occupancy2 9% Umeå 9% 43% 1,521 Skellefteå Luleå Rental income from public related tenants Number of contrac
Slide 42: Offices portfolio – Rental growth
Offices portfolio – Rental growth Historical net letting (SEKm) 11.6% Like-for-like rental growth1 60 50 Letting activity highlights 40 • Skatteverket in Sundsvall (Q2 30 2023) 20 • 2,100 SEK/sqm for 2,600 sqm 10 • 6y green lease contract 0 • Government related tenant • Previous rent 1,350 SEK/sqm (
Slide 43: Urban services portfolio – Overview
Urban services portfolio – Overview Rental value, business area SEK 803m 498k sqm Contracted rental income Leasable area Dalarna 14% 19% Gävle Sundsvall Östersund/Åre SEK 1,762 94% Rental per sqm1 Occupancy2 12% Umeå 18% 886 12% Skellefteå Luleå Rental income from public related tenants Number of co
Slide 44: Urban services portfolio – Rental growth
Urban services portfolio – Rental growth Historical net letting (SEKm) 10.1% Like-for-like rental growth1 30 25 Letting activity highlights 20 • COOP in Skellefteå (Q1 2023) 15 • 1,900 SEK/sqm for 1,700 sqm 10 • 10y lease contract 5 • Previous rent 1,300 SEK/sqm 0 (5) • STC (gym) in Sundsvall and Ös
Slide 45: Living portfolio – Overview
Living portfolio – Overview Rental value, business area SEK 202m 161k sqm Contracted rental income Leasable area 8% Dalarna 15% Gävle 11% 6% Sundsvall Östersund/Åre SEK 112 94% Rent per sqm per month1 Occupancy2 Umeå 7% 2,507 Skellefteå Luleå 15% Number of units 37% 1. Contracted rent per month per
Slide 46: Disclaimer
Disclaimer This presentation has been prepared by Diös Fastigheter AB (publ) (“Diös” or the “Company”) solely for use at this presentation and is furnished to you solely for your information and may not be reproduced or redistributed, in whole or in part, to any other person. The presentation does n