Slide 1: High business tempo and good growth
Q3 2024 presentation High business tempo and good growth Liia Nõu, CEO Anneli Lindblom, CFO Anders Berg, Head of IR 24 October 2024
Slide 2: Investment highlights
Strategic position Investment highlights 1 A global & growing market We are active in travel and tourism – a global and dynamic industry with strong structural 2 Hotel properties only We invest exclusively in hotel properties and create value through active and engaged ownership. 3 Revenue-based lea
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 3
Slide 4: Finally, a portfolio transaction…
Strategic position Finally, a portfolio transaction… Three modern and highly profitable aparthotels in central London Extended stay | City center | Own Operations | Management agreement Residence Inn by Marriott London Kensington Residence Inn by Marriott Tower Bridge Residence Inn by Marriott Londo
Slide 5: …and another profitable single asset
Strategic position …and another profitable single asset A classic hotel with good profitability City center | Own Operations | Management agreement | Transaction price MGBP 49 | Initial yield >7.5 percent | 1 October DoubleTree by Hilton Edinburgh City Centre 138 rooms 5
Slide 6: A strong and well-diversified business portfolio
Strategic position A strong and well-diversified business portfolio Pandox Leases Own Operations Group 160 138 22 Hotel properties Leased properties Operated properties 35,534 29,976 5,558 Rooms Rooms Rooms SEK 74,234bn SEK 59,281bn SEK 14,953bn Property market value Property market value Property m
Slide 7: High business tempo and good growth
Quarter in brief High business tempo and good growth High business tempo Active leisure travel and good business demand Good operational performance ― Group revenue +5 percent LFL ― Group NOI +3 percent LFL Growth in cash earnings and EPRA NRV (annualised) per share of 4 percent respectively A yield
Slide 8: RevPAR YTD trending above 2023 (LFL)
Business segment Leases RevPAR RevPAR YTD trending above 2023 (LFL) 1 200 1 077 1 007 1 025 1 000 947 942 821 800 750 667 578 600 400 200 0 jan feb mar apr maj jun jul aug sep okt nov dec 2023 2024 8
Slide 9: A positive hotel market
Hotel market development (vs 2023) A positive hotel market Edinburgh 14% June 2024 YTD ADR Sept 2024 YTD ADR 10% Edinburgh 12% Frankfurt 13% Stockholm 7% Norway Regional 10% Stockholm 7% Germany 8% Norway Regional 9% Hamburg 6% 5% Hamburg 6% 5% Frankfurt 6% Finland Regional 0% Finland Regional 0% Co
Slide 10: Investing for value growth
High quality project pipeline – A selection of projects Investing for value growth On track to MSEK +300 in NOI per year by 2026 Recently completed projects Business Type of Business Type of Property Location Completed Property Location Completed segment investment segment investment The Hotel, Brus
Slide 11: Profitable growth
Financial summary Profitable growth A seasonally strong quarter Revenue and result (MSEK) 24Q3 23Q3 YoY% LFL%1) Pandox Group revenue 1,873 1,884 -1 5 Good performance in Own Operations Pandox Group NOI 1,159 1,142 1 3 ― NOI Group +5 percent percent LFL Leases revenue 1,069 1,040 3 2 ― NOI Leases +1
Slide 12: Positive unrealised changes in value
Property portfolio Positive unrealised changes in value MSEK Comment: A mix of changes in cash flow and yields, reflecting value creation from acquisition and repositioning of several properties Approximately 100 percent of the properties externally valued in the past 12 months, based on Total unrea
Slide 13: Solid yield gap and growing EPRA NRV
1 2 3 4 0 5 8 19'Q4 6 5.41 7 6.41 20'Q1 20'Q2 20'Q3 Leases 20'Q4 21'Q1 21'Q2 21'Q3 Property portfolio 21'Q4 Own Operations 22'Q1 22'Q2 22'Q3 22'Q4 Average yield, % 23'Q1 23'Q2 23'Q3 23'Q4 24'Q1 24'Q2 6.14 6.87 24'Q3 1 4 7 0 2 5 6 8 19'Q4 3 2.6 20'Q1 20'Q2 20'Q3 20'Q4 21'Q1 21'Q2 21'Q3 21'Q4 22'Q1 22
Slide 14: Low LTV, resilient ICR and solid cash position
Key financial metrics Low 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 50 4 000 46.0 3 2.6 3,774 45.1 45 3 000 2 Unencumbered assets
Slide 15: Solid financial position
Financial summary Solid financial position Refinancings of approximately MSEK 8,069 in the Key metrics (at end of period) 24Q3 23Q3 YoY% quarter Net interest-bearing debt, MSEK 33,515 33,334 +0.5 Some MSEK 11,381 is now sustainability linked EPRA NRV, MSEK 40,742 38,154 +7(*) MSEK 6,360 of debt matu
Slide 16: Clear conditions for growth
Market outlook Clear conditions for growth For the fourth quarter we expect: ― Stable RevPAR growth in the hotel market ― Normal seasonality with slower demand from mid-December to mid-January ― Positive contribution from completed acquisitions and repositionings For 2025 we expect: ― RevPAR growth
Slide 17: Q&A
Q&A 17
Slide 18: 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