Stendoerren Fastigheter Ab Class B · OMXSTO:STEF_B
Stendoerren Fastigheter Ab Class B — Stendörren Fastigheter — Debt Investor Presentation (November 2021)
36 slides from Stendoerren Fastigheter Ab Class B's debt investor presentation, November 2021
Slide 1: Credit Investor Presentation November 2021
STENDÖRREN CREDIT INVESTOR PRESENTATION NOVEMBER 2021
Slide 2: Disclaimer
DISCLAIMER IMPORTANT INFORMATION Acceptance of limitations: The information in this presentation (the “Material”) is furnished by Stendörren Fastigheter AB (publ), 556825-4741 (the “Company”) solely for the recipient’s information and shall not be distributed to anyone else. The intended recipients
Slide 3: Transaction Overview: Key Terms for Contemplated New Issue
TRANSACTION OVERVIEW KEY TERMS FOR STENDÖRREN’S CONTEMPLATED NEW ISSUE Issuer Stendörren Fastigheter AB (publ) Issuer rating BB- from Nordic Credit Rating Status Senior Unsecured bonds (i) amortisations on existing revolving credit facilities in the Group and (ii) general corporate purposes (includi
Slide 4: Today's Presenters
TODAY’S PRESENTERS ERIK RANJE PER-HENRIK KARLSSON CHIEF EXECUTIVE OFFICER CHIEF FINANCIAL OFFICER • CEO of Stendörren Fastigheter since 2020 • CFO of Stendörren Fastigheter since 2020 • Experience: Previously Head of Real Estate Investment • Experience: Previously Head of Accounting at Stendörren. P
Slide 5: Agenda
AGENDA 1. INTRODUCTION 2. REASONS TO INVEST IN STENDÖRREN 2.1 STABLE CASH FLOW 2.2 SUSTAINABLE GROWTH 2.3 VALUE GROWTH IN PROJECTS 2.4 FINANCE 3. INVESTMENT HIGHLIGHTS 4. APPENDIX 5 Investor Presentation
Slide 6: Stendörren at a Glance
STENDÖRREN AT A GLANCE FAST FACTS1 BUSINESS OVERVIEW BUSINESS RATIONALE To manage, develop and acquire properties with focus on logistics, SEK bn SEK m SQ.M % 1% warehouse and light industry in growth regions, mainly urban areas, INTRODUCTION 10.8 744 768,000 88.0 while developing residential buildi
Slide 7: Strong Property Value Growth Since 2014
STRONG PROPERTY VALUE GROWTH SINCE 2014 Property value, SEKbn Number of properties 127 10,5 INTRODUCTION 120 121 122 123 9,5 100 8,5 100 95 7,5 80 81 6,5 10,8 9,5 60 5,5 STENDÖRREN 8,9 8,4 4,5 40 6,5 31 5,8 3,5 20 4,9 2,5 0 2,2 1,5 2014 2015 2016 2017 2018 2019 2020 2021 Q3 2014 2015 2016 2017 2018
Slide 8: Actively Working Towards a Low Carbon Footprint
ACTIVELY WORKING TOWARDS A LOW CARBON FOOTPRINT CLIMATE IMPACT KG CO2/SQ.M ENERGY INTENSITY KWH/SQ.M. DISTRIBUTION OF ENERGY SOURCES 6 140 53% 20% Renewables Non-renewables REDUCED CLIMATE IMPROVED ENERGY INTRODUCTION IMPACT BETWEEN 2017- EFFICIENCY PER SQ.M 2020 (KgCO2,e/sq.m) 135 BETWEEN 2017-2020
Slide 9: Reasons to Invest in Stendörren
REASONS TO INVEST IN STENDÖRREN • High yielding logistics, warehouse and light industrial properties with long leases 1 • The tenant base is diversified and consists of both well-established small to medium sized companies and large multinational INTRODUCTION STABLE CASH businesses from different in
Slide 10: Stable Cash Flow Through a Well-Diversified Portfolio
STABLE CASH FLOW THROUGH A WELL-DIVERSIFIED PORTFOLIO 2% 1% 25% REST OF 1% BORÅS 3% MÄLARDALEN 5% 10% 4% 18% 5% 31% 33% INTRODUCTION 7% 22% LETTABLE 45% RENTAL RENTAL AREA PER INCOME PER INCOME PER SEGMENT1 9% REGION1 TENANT1 13% 36% 3% 3% 13% STENDÖRREN 21% 4% 5% 8% 74% GREATER STOCKHOLM STABLE CAS
Slide 11: Top 10 Tenants Represent 24% of Total Rental Income
TOP 10 TENANTS REPRESENTS 24% OF TOTAL RENTAL INCOME LARGEST TENANTS PER Q3 20211 LEASE MATURITY BY RENTAL INCOME Rental income Rental area, % of total rental Lease agreements that were 226 Tenant INTRODUCTION (SEKm) (‘000 Sq.m.) income renegotiated during Q3 2021 led 616 to an increase in rental va
Slide 12: Favourable Macro Environment
FAVOURABLE MACRO ENVIRONMENT POPULATION GROWTH IN STOCKHOLM SWEDISH E-COMMERCE TURNOVER AND EMPLOYMENT E-commerce turnover SEKBn (LHS) 2020 – 2040 No employed in E-commerce (RHS) 3 000 000 500 80 000 INTRODUCTION Forecasted CAGR of 0.77% Forecasted population 450 E-commerce turnover forecasted to gr
Slide 13: Project Portfolio with Large Potential
PROJECT PORTFOLIO WITH LARGE POTENTIAL ESTIMATED BUILDING RIGHT* ESTIMATED POSSIBLE MUNICIPALITY ENVISAGED MAIN USE STATUS ZONING (GROSS SQ.M.) CONSTRUCTION START** S ödertälje Logistics 63 900 Within curren t zoning 2022-2 026 B otk yrk a Residential 59 000 Within curren t zoning 2023-202 4 INTRODU
Slide 14: Well-Balanced Project Portfolio
WELL-BALANCED PROJECT PORTFOLIO ONGOING PROJECTS PER Q3 2021 ESTIMATED INVESTMENT* PROPERTY TYPE OF DEVELOPMENT ESTIMATED COMPLETION SIZE, NEWT SQ.M CURRENT PHASE (SEKM) INTRODUCTION Almnäs 5:20 New logistics Q4 2022 11,200 166 Pre-construction work*** Hjulsmeden 1 New light industrial Q4 2022 2,600
Slide 15: Financial Targets
FINANCIAL TARGETS 20 % 3.0x 44% 29% INTRODUCTION STENDÖRREN STABLE CASH FLOW ROE (LTM Q3 2021, AVERAGE) ICR (LTM Q3 2021) EQUITY RATIO (Q3 2021) NAV GROWTH (LTM Q3 2021) SUSTAINABLE GROWTH 25% 3,50x 50% 35% 45% 3,00x 30% VALUE 20% 40% GROWTHIN PROJECTS 2,50x 35% 25% 35% 15% 30% 2,00x 2.0x 20% FINANC
Slide 16: Financial Key Metrics
FINANCIAL KEY METRICS GROWING PROPERTY PORTFOLIO STABLE AND IMPROVING DEBT SERVICE CAPACITY PROPERTY VALUE, SEKm NET OPERATING INCOME, SEKm INTRODUCTION 10 803 78% 80% 9 868 74% 73% 75% 9 358 71% 69% 8 610 8 892 9 323 64% 66% 127 127 8 027 62% 118 115 121 124 107 111 6 659 98 99 98 93 5 752 6 039 88
Slide 17: Assessed Earnings Capacity
ASSESSED EARNINGS CAPACITY BASED ON CURRENT PORTFOLIO OF 127 PROPERTIES • According to the company’s assessment as of Q3 2021, INTRODUCTION INTRODUCTION the total rental income (after deductions for vacancies and discounts) on a rolling 12-month basis amounts to 667 153 approximately SEK 667 million
Slide 18: Debt Funding
DEBT FUNDING DEBT FUNDING OVERVIEW LOAN MATURITY INTEREST FIXING SEKm SEKm 1 600 1 600 INTRODUCTION INTRODUCTION 13% 1 431 1 378 1 356 1 400 1 400 1 161 1 200 1 200 1 050 12% 1 034 1 000 1 000 900 STENDÖRREN STENDÖRREN 850 755 800 800 600 600 STABLE CASH FLOW 75% 400 264 400 202 200 200 0 SUSTAINABL
Slide 19: Investment Highlights
INVESTMENT HIGHLIGHTS WELL-EQUIPED FOR THE FUTURE BALANCED PORTFOLIO • As of Q3 2021 the property portfolio was valued at SEK 10.8bn consisting of 127 individual properties with an average INTRODUCTION remaining lease term duration of 3.6 years IN SUSTAINABLE • All properties are strategically locat
Slide 20: Stendörren
STENDORREN SSE EES BE SE |
Slide 21: Public Credit Rating
PUBLIC CREDIT RATING1 RATING OVERVIEW RATING RATIONALE LONG-TERM RATING: Nordic Credit Rating (“NCR”) has assigned Stendörren with a ‘BB-’ long-term issuer rating, with a stable outlook and a short- INTRODUCTION BB- term rating of N-2 STABLE OUTLOOK: OUTLOOK: According to NCR, the stable outlook ref
Slide 22: Corporate Governance
CORPORATE GOVERNANCE MANAGEMENT BOARD OF DIRECTORS Erik Ranje Anders Tägt – Chairman of the board CEO of Stendörren Fastigheter since 2020 Experience: Board member of AB Granudden Konsult and Brunswick Real Estate Capital Advisory AB. Experience: Previously Head of Real Estate Investment Mr Tägt has
Slide 23: Share Performance and Ownership Overview
SHARE PERFORMANCE AND OWNERSHIP OVERVIEW MAIN SHAREHOLDER AS PER 2021-09-30 SHARE PRICE DEVELOPMENT Ownership SEK Share price (lhs) Turnover (rhs) SEKm 300 140 Number of shares % of INTRODUCTION Owners A-shares B-shares Total Votes Capital 250 120 Stendörren Real Estate AB 100 2,000,000 9,532,606 11
Slide 24: Share Value and Key Equity Ratios
SHARE VALUE AND KEY EQUITY RATIOS KEY EQUITY RATIOS SEPTEMBER2021 SEPTEMBER 2020 SEKm SEK/share Share price, SEK 231.00 134.50 6 000 250 INTRODUCTION Equity per share, SEK 1) 141.76 112.41 Long term nav per share, SEK 170.20 132.16 5 000 200 1) Book equity excluding hybrid capital per share 4 000 15
Slide 25: Income Statement
INCOME STATEMENT 2018 2019 2020 LTM Q3-21 COMMENTARY Rental income 537 591 631 645 • LTM Q3 2021, rental income Other income 1 20 10 amounted to SEK 645m INTRODUCTION Total income 537 592 652 655 while the NOI amounted to SEK 482m Operating expenses -127 -122 -114 -124 • Profit from property Mainten
Slide 26: Balance Sheet
BALANCE SHEET 2018 2019 2020 Q3-21 COMMENTARY Assets Intangible assets • As of 30 September 2021, 6 4 4 2 total assets amounted to INTRODUCTION Investment properties 8,476 9,147 9,533 10,803 SEK 11,235m Land leases 225 225 225 Inventory 3 7 6 7 • At the end of the period, Long-term receivables 0 3 3
Slide 27: Cash Flow Statement
CASH FLOW STATEMENT 2018 2019 2020 LTM Q3-21 COMMENTARY Profit from property management 174 135 254 266 Adjustments for non-cash flow affecting items 16 -10 2 • LTM Q3 2021 cash flow from 11 operating activities INTRODUCTION Taxes paid -15 -2 -2 - amounted to SEK 300m Cash flow from operating activi
Slide 28: Risk Factors
RISK FACTORS In this section, material risk factors are illustrated and discussed, including the Issuer’s economic and market risks, business risks, legal and regulatory risks, as well as structural risks relating to the Notes, risks relating to the Notes and risks related to debt instrument such as
Slide 29: Risk Factors (cont'd)
RISK FACTORS (CONT’D) According to the Issuer’s finance policy, between 40 per cent. and 70 per cent. of all interest bearing liabilities should always be hedged through interest derivatives or fixed rate contracts. For example, the Group has entered into interest rate swap agreements with respect t
Slide 30: Risk Factors (cont'd)
RISK FACTORS (CONT’D) Risks relating to the Issuer’s business Property transactions The Issuer’s Property portfolios may vary over time and acquisition and sale of additional Properties and Property owning companies are an important part of the Issuer’s and the Group’s ordinary business. The Group a
Slide 31: Risk Factors (cont'd)
RISK FACTORS (CONT’D) For example, the Issuer owns in excess of 120 properties and as a part of the active management of the Property portfolio there are approximately 8 properties where there is an ongoing process to update or change the existing zoning plan to fit the business plan for those prope
Slide 32: Risk Factors (cont'd)
RISK FACTORS (CONT’D) Financially strong competitors may use price reductions with the purpose of quickly gaining market shares or to establish themselves on the market. If such competitors decides to enter into the markets of Greater Stockholm (Storstockholm) and the Mälaren Valley (Mälardalen) whe
Slide 33: Risk Factors (cont'd)
RISK FACTORS (CONT’D) Risks relating to inadequate insurance The Group has insured its operations against usual losses and/or potential liability in relation to third party claims. Certain types of losses and/or damages are generally not covered by insurance policies due to such losses being conside
Slide 34: Risk Factors (cont'd)
RISK FACTORS (CONT’D) If the value of the Properties decreases, causing the Issuer to write down their value, it could result in a number of consequences, such as a breach of the covenants of the Notes and other loans owed by the Group from time to time, which in turn could result in the Notes and s
Slide 35: Risk Factors (cont'd)
RISK FACTORS (CONT’D) Taxation risks During the financial year of 2020, Stendörren’s total tax costs amounted to SEK 86 million and the effective tax rate was 25.1 per cent. In the event that the historical tax position would be challenged this could lead to additional tax costs for the Group should
Slide 36: Risk Factors (cont'd)
RISK FACTORS (CONT’D) Since the Benchmark Regulation has only been applicable for a limited period of time, the effects of the regulation are difficult to assess. There is a risk that the Benchmark Regulation may affect how certain benchmarks are calculated and how they will develop which, in turn,
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