Stendoerren Fastigheter Ab Class B · OMXSTO:STEF_B
Stendoerren Fastigheter Ab Class B — Stendörren Fastigheter — Q3 2024 Earnings Presentation
31 slides from Stendoerren Fastigheter Ab Class B's earnings presentation, 2024
Slide 1: Third Quarter 2024
THIRD QUARTER 2024 STENDÖRREN
Slide 2: Snapshot of Stendörren
SNAPSHOT OF STENDÖRREN SEGMENT (area) GEOGRAPHY (rental income) LIGHT INDUSTRY Warehouse and logistics, 48% Stockholm municipality, 30% LOGISTICS Light industrial, 21% Rest of Stockholm, 31% Office, 20% WAREHOUSE Rest of Mälardalen, 30% Retail, 10% Gothenburg region, 1% RESIDENTIAL BUILDINGS RIGHTS
Slide 3: Stendörren History in Short
STENDÖRREN HISTORY IN SHORT PROPERTY VALUE 2024 PROPERTY VALUE 2023 PROPERTY 13.1 VALUE 2022 BN PROPERTY 12.6 BN PROPERTY VALUE 2021 12.4 153 BN PROPERTIES PROPERTY VALUE 2020 11.7 151 BN PROPERTIES VALUE 2019 9.5 148 PROPERTY VALUE 2018 8.9 BN 135 PROPERTIES 2024 PROPERTY VALUE 2017 8.4 BN 123 PROP
Slide 4: 4 Reasons to Invest in Stendörren
4 REASONS TO INVEST IN STENDÖRREN 1. 2. STABLE CASH FLOW SUSTAINABLE GROWTH • High yielding asset class • Growth locations - Greater Stockholm and Mälardalen region • Long leases • E-commerce as growth driver • Diversified tenant base • Rent levels increase in urban locations – increasing demand and
Slide 5: Operational Highlights
OPERATIONAL HIGHLIGHTS NOI DEVELOPMENT (MSEK) STRONG RENTAL INCOME AND NOI GROWTH CAGR: 13% • 8.4% underlying NOI increase in the comparable portfolio 178 174 183 185 163 168 157 139 144 136 STRONG LETTING 107 118 115 127 121 111 123 127 127 129 98 • Positive contribution from renegotiation of l
Slide 6: Financial Highlights
FINANCIAL HIGHLIGHTS EQUITY RATIO (%) ATTRACTIVE FINANCING CONDITIONS FUELING 40 41 40 40 40 40 41 43 44 43 44 42 42 41 40 39 38 37 37 39 GROWTH 35% 32 32 35 • Refinancing of SEK 600m bond at Stibor 90 plus 3.90% with a green bond of SEK 800m at Stibor 90 plus 2.90% 20% • Additional secured bank d
Slide 7: SEK ~820m in Acquisitions and Project Starts
SEK ~820M IN ACQUISITIONS AND PROCENT STARTS Uppsala Portfolio Kalliotie 2 Båglampan 25 Municipality Uppsala Municipality Tuusula, Helsinki Region Municipality Bromma, Stockholm Lettable area 18,600 sq.m. Lettable area 13,600 sq.m. Lettable area 3,700 sq.m. Type Acquisition Type Acquisition Type Dev
Slide 8: Completed Projects
COMPLETED PROJECTS 26% 89% Combined occ. rate Almnäs 5:23 (Phase 1) Almnäs 5:24 (Phase 6.1 & 6.2) Viby 19:66 (Phase 1) Municipality Södertälje Municipality Södertälje Municipality Upplands-Bro 74% Premises Logistics Premises Light industrial Premises Logistics 37,300 sq m Area 11,900 sq.m. Area 2 x
Slide 9: Value Growth in Projects
VALUE GROWTH IN PROJECTS PROJECT PORTFOLIO WITH LARGE POTENTIAL Estimated building Estimated Possible Municipality Envisaged main use Status Zoning right sq. m.1 Construction Start 2 • Fully developed up to an Upplands-Bro Logistics 377 000 Within current zoning 2025-2026 additional 638,000 sqm can
Slide 10: Value Growth in Projects – Continued
VALUE GROWTH IN PROJECTS – CONTINUED ONGOING AND COMPLETED PROJECTS Q3 2024 Estimated Earliest Estimated Estimated Size remaining Occupancy rate Property Description Current Phase possible investment3 yearly NOI sq. m.2 Investment completion1 SEKm SEKm • 8,000 sqm completed during SEKm Filmremsan 2
Slide 11: Examples of Ongoing Projects
EXAMPLES OF ONGOING PROJECTS FILMREMSAN 2 SVALEHÖJVEJ 17 Municipality: Stockholm Municipality: Copenhagen Project: Re-construction Project: Extension light industrial Area: 2,400 sq.m. Area: 3,300 sq.m. Status: Construction in progress Status: Construction in progess ALMNÄS 5:23 NYGÅRD 2:17 Municipa
Slide 12: Value Growth in Projects – Case Study
VALUE GROWTH IN PROJECTS – CASE STUDY ALMNÄS – TRANSFORMING AN AREA Overview Work in progress – Partly old and partly new • Located in the coming logistics hub Stockholm Syd • Close to Södertälje and ca 45km south-west of central Stockholm. Positioned close to major, e.g. E20 and E4 • Acquired 2015
Slide 13: Sustainability - Achievements
SUSTAINABILITY - ACHIEVEMENTS CLIMATE IMPACT KG CO2/SQ.M ENERGY INTENSITY KWH/SQ.M. DISTRIBUTION OF ENERGY SOURCES Renewables Non-renewables 4,50 32% 140 36% REDUCED CLIMATE IMPROVED ENERGY 4,00 IMPACT BETWEEN 2018- 2023 (KgCO2,e/sq.m) 130 EFFICIENCY PER SQ.M BETWEEN 2018-2023 2% 2% 3,50 120 4% 4% 5
Slide 14: Sustainability Strategy
SUSTAINABILITY STRATEGY OVERALL GOAL: NET ZERO CARBON EMISSIONS ACROSS OUR ENTIRE OPERATIONS BY 2040 -27% Reduction of energy intensity (kvh/kvm) as of 30 September, 2024, compared with base year 2020 66% Environmentally certified area out of total area, as of 30 September, 1,308 KWP 2024 Total capa
Slide 15: Sustainability Offering
SUSTANABILITY OFFERING Energy performance Solar panels up to 80% below required level Concrete & asphalt Recycling of with reduced CO2 construction footprint material Particle cleaning Timber frame building envelope BREEAM Geothermal certification heating Charging stations Biodiversity 15 Investor P
Slide 16: Increased Focus on Profitable Growth
INCREASED FOCUS ON PROFITABLE GROWTH • Acquire yielding single assets / small portfolios off market ACQUISITIONS • Expand in greater Stockholm and Mälardalen • Obtain critical mass in new markets • Develop existing building rights in growth areas (~640.000 sqm vs existing portfolio of ~815.000 sqm)
Slide 17: Thank You!
STENDORREN THANK YOU!
Slide 18: Appendix
APPENDIX 18 Investor Presentation Picture: Almnäs Development Phase II
Slide 19: Introduction: Business Idea, Market, Financial Objectives
INTRODUCTION BUSINESS MARKET FINANCIAL IDEA OPPORTUNITY OBJECTIVES Stendörren creates profitable growth in net The properties are strategically located in • Return on equity of at least 12 % asset value by managing, developing and growth areas (population and economic), acquiring properties mainly i
Slide 20: 4 Reasons to Invest in Stendörren
4 REASONS TO INVEST IN STENDÖRREN 1. 2. STABLE CASH FLOW SUSTAINABLE GROWTH • High yielding logistics, warehouse and light • Properties strategically located in growth areas such as Greater industrial properties with long leases Stockholm and the Mälardalen region • Diversified tenant base of both w
Slide 21: 1. Stable Cash Flow
1. STABLE CASH FLOW DIVERSIFICATION WITH FOCUS ON GREATER STOCKHOLM PROPERTY PORTFOLIO OVERVIEW • Stendörren has a property portfolio of SEK 13,100m, with a property yield of 6.5%1 as per 30 September 2024 • Rental value2 of SEK 954 with an economic occupancy rate of 93% as per 30 September 2024 • L
Slide 22: 1. Stable Cash Flow – Continued
1. STABLE CASH FLOW – CONTINUED DIVERSIFIED TENANT BASE LARGEST TENANTS AS PER Q3 2024 MATURITY STRUCTURE LEASE AGREEMENTS Rental Rental area, Share of total Tenant income, th. sq.m. rental income SEKm 472 330 Coop Logistik AB 69 129 8% Åtta.45 Tryckeri AB 14 11 2% Stockholm Vatten AB 12 7 2% Mounta
Slide 23: 2. Sustainable Growth
2. SUSTAINABLE GROWTH WHY FOCUS ON THE STOCKHOLM REGION? POPULATION STOCKHOLM REGION STOCKHOLM REGION 2022 – 2040 3 000 000 Forecasted CAGR of 0.77 % • The gross regional product in Stockholm per capita is ca 40% Forecasted population 2010 – 2021 growth of 19,900 higher than the national average 2 7
Slide 24: 3. Value Growth in Projects – Case Studies
3. VALUE GROWTH IN PROJECTS – CASE STUDIES ALMNÄS – TRANSFORMING AN AREA Overview Work in progress – Partly old and partly new • Located in the coming logistics hub Stockholm Syd • Close to Södertälje and ca 45km south-west of central Stockholm. Positioned close to major, e.g. E20 and E4 • Acquired
Slide 25: 3. Value Growth in Projects – Case Studies
3. VALUE GROWTH IN PROJECTS – CASE STUDIES STENVRETEN 8:37 – “ADVANIA DREAM HOUSE” Overview Renderings of completed building • Stendörren’s existing tenant Advania decided to significantly expand their Enköping premises during the fall of 2023 • Construction is ongoing of 9,500 sqm of state of the a
Slide 26: 3. Value Growth in Projects – Residential Conversions
3. VALUE GROWTH IN PROJECTS – CONTINUED RESIDENTIAL CONVERSIONS TEGELBRUKET – TRAVERSEN - SKRUBBA - NYGÅRD • Identifying underutilized assets in urban locations with potential for residential development • The assets have been acquired as cash flow generating properties • As an example, the asset Te
Slide 27: 4. Finance – Highlights from Q3 Report
4. FINANCE HIGHLIGHTS FROM Q3 REPORT NET LETTING (MSEK) ECONOMIC OCCUPANCY (%) Excluding bankruptcy of second largest tenant Exploria 17 95 16 15 14 14 94 94 94 93 93 93 92 8 8 91 91 7 7 90 5 89 89 89 1 1 88 88 1 87 87 87 -2 -1 -2 -4 -4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 -11 20
Slide 28: 4. Finance – Financial Targets
4. FINANCE – CONTINUED FINANCIAL TARGETS ROE (%) NAV GROWTH (%) 37 35 26 26 29 22 25 20 22 18 16 17 18 15 14 15 13 12 12% 9 9 10 8 9 15% 11 11 10 9 9 7 7 5 1 1 4 -3 -6 -5 -5 -2 0 -1 -5 -8 -3 -4 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 29: 4. Finance – Debt Funding
4. FINANCE – CONTINUED DEBT FUNDING DEBT FUNDING OVERVIEW LOAN MATURITY INTEREST FIXING SEKm SEKm 3 000 2 591 3 500 2 916 4% 2 500 2 223 3 000 2 700 22% 2 000 2 500 1 900 2 000 1 500 1 159 1 119 1 500 1 000 414 1 000 74% 500 500 9 0 0 0 0 0 Bank debt Sr Unsecured bond Hybrid bond • Total interest-be
Slide 30: 4. Finance – Key Equity Ratios and Ownership Overview
4. FINANCE – CONTINUED KEY EQUITY RATIOS AND OWNERSHIP OVERVIEW SEKm SEK/share 7 000 350 SHAREHOLDER % OF CAPITAL % OF VOTES STENDÖRREN REAL ESTATE AB 40,6 58,0 6 000 300 ALTIRA AB 10,7 14,8 SEB INVESTMENT MANAGEMENT 13,2 7,4 5 000 250 LÄNSFÖRSÄKRINGAR FASTIGHETSFOND 9,1 5,1 ODIN FONDER 2,7 1,5 4 00
Slide 31: 4. Finance – Assessed Earnings Capacity
4. FINANCE – CONTINUED ASSESSED EARNINGS CAPACITY AS OF 1 OCTOBER 2024 • According to the company’s assessment, the total rental income (after deductions for vacancies and Assessed earnings capacity discounts) on a rolling 12-month basis amounts to Rental Income 954 approximately SEK 954 million. To
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