Catena Ab · OMXSTO:CATE
Catena Ab — Q4 2023 Earnings Presentation
31 slides from Catena Ab's earnings presentation, Feb 22, 2024
Slide 1: Properties for the logistics of the future
Q4 2023 Presentation February 2024 Properties for the logistics of the future Presentation Q4 2023 1
Slide 2: Q4 2023 Presentation
Q4 2023 Presentation February 2024 Q4 2023 Presentation Jörgen Eriksson Sofie Bennsten David Silvesjö CEO CFO Chief Treasury Officer 2
Slide 3: Agenda
Q4 2023 Presentation February 2024 Agenda 1. Summary 5. Financial update 2. Business overview 6. Takeaways from today 3. Business update 7. Q&A 4. Sustainability 3
Slide 4: Q4 2023 summary: Favourable conditions for continued growth
Q4 2023 Presentation February 2024 Q4 2023 summary: Favourable conditions for continued growth • Rental income increased by 17 percent mainly + 16% Profit from Property Management (PFPM) due to indexation and acquisitions SEK M 1107 • Profit from property management increased by 16 954 percent to SE
Slide 5: Business overview
Business overview Sector-leading portfolio and prime customer base.
Slide 6: Market update
Q4 2023 Presentation February 2024 Market update More activities in the market • Sellers and buyers starting to agree on values • E-commerce is down in terms of value but up in volume • More ongoing dialogues regarding new projects • Energy investments • Oversupply 6
Slide 7: Customer base
Q4 2023 Presentation February 2024 Customer base Packaging Public sector Others Customers Share of contractual value 2% 2% 5% Industry DHL 10% 3% Healthcare ICA 8% 4% Martin &Servera 6% Construction and Postnord 5% Furnishing Logistics and 4% transport Boozt 3% 38% Nowaste Logistics 3% Durable goods
Slide 8: Portfolio
Q4 2023 Presentation February 2024 Portfolio Regions Number of Lettable Fair Value, Rental Economic Contractual Surplus properties area, Tsqm SEK M value, SEK letting ratio, annual rent, ratio, %2 M % SEK M1 Göteborg 22 372 5,351 316 97 305 85 Helsingborg 27 510 5,822 364 98 356 75 Jönköping 11 158
Slide 9: Business update
Business update Attractive growth enabled by our long- standing customer relationships, unique landbank and strong financial position.
Slide 10: Current development
Q4 2023 Presentation February 2024 Current development 1,912 SEK M Carrying value Stenvreten 8:33, Tenant: COOP Sqm: 5,800 Enköping Investment: 124 SEK M Finalized: Q1 2024 1,933 SEK M Remaining Hyltena 1:102, Tenant: Elgiganten Sqm: 86,600 Investments Jönköping Investment: 813 SEK M Finalized: Q2 2
Slide 11: Malmö, Lodgatan
Q4 2023 Presentation February 2024 Case Malmö, Lodgatan Location: Malmö municipality Property: Sockret 4 Land area: 42,000 sqm Status: Ongoing construction Tenant: Rugvista GLA: 13,700 sqm Certification: BREEAM Very Good 11
Slide 12: Jönköping, Stigamo
Q4 2023 Presentation February 2024 Case Jönköping, Stigamo Location: Jönköping municipality Property: Stigamo 1:49 Land area: 85,000 sqm Status: Ongoing construction Tenant: Nowaste Logistics GLA: 33,000 sqm 12 Certification: BREEAM Excellent
Slide 13: Jönköping, Hyltena
Q4 2023 Presentation February 2024 Case Jönköping, Hyltena Location: Jönköping municipality Property: Hyltena 1:102 Land area: 220,000 sqm Status: On-going construction, moving in May 2024 Tenant: Elgiganten Expected GLA: 86,600 sqm Certification: BREEAM Excellent 13 and WELL Core
Slide 14: Logistikposition Landvetter
Q4 2023 Presentation February 2024 Case Logistikposition Landvetter Location: Härryda municipality Property: Dansered 1:66 Land area: 210,000 sqm Status: On-going construction, Tenant: MM-Sport Expected GLA: 8 700 sqm Certification: BREEAM Excellent 14
Slide 15: Future development
Q4 2023 Presentation February 2024 Future development Örebro South (JV, 50%), Land, Sqm: 920,000 Törsjö Pending zoning plan Stockholm South, Land, Sqm: 450,000 4,600 Ksqm Nykvarn/Södertälje Zoning plan approved Land bank Logistics Position Järna Land Sqm: 1,000,000 Södertälje Pending zoning plan 1,7
Slide 16: Leasing update
Q4 2023 Presentation February 2024 Leasing update Maturity profile – Net leasing WALE development Letting ratio contractual annual rent SEK M 45,0% 250 40,0% 98,0% 5,5 5,5 200 35,0% 5,3 5,1 5,1 97,0% 96,6% 30,0% 5,0 150 4,9 25,0% 96,0% 100 20,0% 50 15,0% 95,0% 0 10,0% 94,0% 2016 2017 2018 2019 2020
Slide 17: Sustainability
Sustainability We are taking long-term responsibility.
Slide 18: Sustainability
Q4 2023 Presentation February 2024 Sustainability Sustainability targets 2023 2022 2021 Trend Continued progress towards 2030 targets Net-zero greenhouse gas emissions by 2023 • 39 percent of lettable area is environmentally -Scope 1-2 (location based) 3,612 2,814 2,632 certified -Scope 3 (locations
Slide 19: Financial update
Financial update Strong cashflows and balance sheet provides flexibility and opportunity.
Slide 20: Income
Q4 2023 Presentation February 2024 Income Rental income Net operating surplus Profit from property management SEK M +17% SEK M +19% SEK M +16% 1 808 1 447 1107 1 544 954 1 220 1 387 1 095 824 1 264 1 004 719 1 183 903 1 091 828 627 571 2018 2019 2020 2021 2022 2023 2018 2019 2020 2021 2022 2023 2018
Slide 21: Rental development
Q4 2023 Presentation February 2024 Rental development 2023 YoY Like-for-like1 11,6 % Project development 2,9 % Acquisitions 4,7 % Divestments -2,1 % Total 17,1 % • Strong LFL driven by CPI increase • Vanda and Fröträdet main drivers within divestments • The acquisitions of two danish assets and two
Slide 22: Capital structure management
Q4 2023 Presentation February 2024 Capital structure management Solid equity ratio enables optionality SEK M 40 000 60% 53,5% 51,9% • With interest rate peak likely behind us we expect 35 000 50% investment sentiment to gradually pick up in 2024. 43,5% 30 000 • Sound credit credentials is key to acc
Slide 23: Financial position
Q4 2023 Presentation February 2024 Financial position 12 6 Financial strategy has paid off 10 5 8 4 • Interest coverage of 4.0x and Net debt/EBITDA of 6 3 7.2x well within policy range 4 2 • LTV at satisfying levels 2 1 • Debt is gradually transformed into 0 0 2018 2019 2020 2021 2022 2023 green/sus
Slide 24: Debt and money management
Q4 2023 Presentation February 2024 Debt and money management Capital market access starting to ease SEK M Debt maturity profile Debt management 3 000 2 500 • Signs of compressed credit spreads on back of prudent financial 2 000 policy and markets getting less concerned over macro 1 500 development.
Slide 25: Interest management
Q4 2023 Presentation February 2024 Interest management Fixed interest strategy complies with long term SEK M Interest maturity profile operating strategy 5 000 • During the quarter, we acquired an interest rate 4 000 swap of 500 SEK M at 2.4 percent with 5 years of 3 000 maturity 2 000 • The loan po
Slide 26: Transactions
Q4 2023 Presentation February 2024 Capital deployment 1,209 Acquisitions (SEK M) Transactions 4 500 4 000 3 500 -9 Divestments (SEK M) 3 000 2 500 2 000 1 500 1 000 500 Development CAPEX 0 1,939 2017 2018 2019 2020 2021 2022 2023 Capex -500 (SEK M) Acquisition CAPEX (net) Development CAPEX 26
Slide 27: Property valuation
Q4 2023 Presentation February 2024 Property valuation 5.4% EPRA NIY Higher yields mitigated by higher rent levels 40 000 7,0% • Value changes Year-End 2023 35 000 6,0% • 524 Msek of unrealized value change 30 000 • Driven by higher yields, mitigated by higher rent 5,0% levels, project profits and a
Slide 28: Takeaways from today
Takeaways from today CATENA
Slide 29: Catena delivers a record-breaking 2023
Q4 2023 Presentation February 2024 1. Catena delivers a record- breaking 2023 2. Catena experiences favourable conditions for continued growth through acquisitions and new projects. 29
Slide 30: Q&A
Q4 2023 Presentation February 2024 Q&A Jörgen Eriksson Sofie Bennsten David Silvesjö CEO CFO Chief Treasury Officer 30
Slide 31: CATENA
CATENA