Stendoerren Fastigheter Ab Class B · OMXSTO:STEF_B
Stendoerren Fastigheter Ab Class B — Stendörren Fastigheter — Q4 2022 Earnings Presentation
22 slides from Stendoerren Fastigheter Ab Class B's earnings presentation, 2023
Slide 1: Fourth Quarter 2022
FOURTH QUARTER 2022 STENDÖRREN
Slide 2: Introduction: Business Idea, Market Opportunity and Financial Objectives
INTRODUCTION BUSINESS IDEA, MARKET OPPORTUNITY AND FINANCIAL OBJECTIVES MARKET BUSINESS OPPORTUNITY IDEA The properties are strategically located in growth areas (population and economic), mainly in Stendörren creates profitable growth Greater Stockholm and the Mälardalen region. in net asset value
Slide 3: Operational Highlights
Excluding bankruptcy of second OPERATIONAL HIGHLIGHTS largest tenant Exploria NET LETTING (MSEK) STRONG NET LETTING 16 15 17 • Strong net letting during last 8 quarters - vacancy below 10%. 14 14 14 • Continued strong renegotiation of lease agreements - 21% average 8 increase in rent on renegotiat
Slide 4: Financial Highlights
FINANCIAL HIGHLIGHTS ROE (%) FINANCIAL KEY FIGURES NEGATIVELY EFFECTED BY REVALUATIONS 26 26 • SEK -143 million January – December. 22 20 20 • SEK -354 million October – December. 18 20 18 16 16 15 14 REFINANCINGS OF SECURED BANK 9 9 10 DEBT DURING H1 2022 12% 8 7 7 9 5 • Substantially strengthe
Slide 5: Snapshot of Stendörren
SNAPSHOT OF STENDÖRREN PROPERTY VALUE1 RENTAL VALUE2 NOI YIELD3 LTV4 SEK SEK 5.5% 47% 12.4 bn 824 m LETTABLE AREA1 NAV5 LEASE DURATION6 BUILDING RIGHTS1 SQ.M. SEK SQ.M. 3.8 years 795,000 4,918 million 657,000 1) Property portfolio as per December 31, 2022 2) Estimated earnings capacity as of January
Slide 6: Stendörren History in Short
STENDÖRREN HISTORY IN SHORT PROPERTY VALUE Q4 2022 PROPERTY VALUE 2021 12.4 BN PROPERTY 11.7 VALUE 2020 BN 148 PROPERTY 9.5 PROPERTIES VALUE 2019 BN 135 PROPERTY VALUE 2018 8.9 PROPERTIES BN 123 8.4 PROPERTY VALUE 2017 BN 122 PROPERTIES 2022 PROPERTY VALUE 2016 6.5 BN 121 PROPERTIES 2021 PROPERTY VA
Slide 7: Reasons to Invest in Stendörren
4 REASONS TO INVEST IN STENDÖRREN 1. STABLE CASH FLOW 2. SUSTAINABLE GROWTH • High yielding logistics, warehouse and light • Properties strategically located in growth areas (population and industrial properties with long leases. economic) in the Greater Stockholm and the Mälardalen region. • The te
Slide 8: 1. Stable Cash Flow
1. STABLE CASH FLOW DIVERSIFICATION WITH FOCUS ON GREATER STOCKHOLM PROPERTY PORTFOLIO OVERVIEW • Stendörren has a property portfolio of SEK 12,418m, with a property yield of 5.5%1 as per 31 December 2022. • Rental value2 of SEK 824m with an economic occupancy rate of 92% as per 31 December 2022. •
Slide 9: 1. Stable Cash Flow – Continued
1. STABLE CASH FLOW – CONTINUED DIVERSIFIED TENANT BASE LARGEST TENANTS AS PER Q4 2022 LEASE MATURITY BY RENTAL INCOME Rental Share of Rental area, Tenant income, total rental th. sq.m. SEKm income 667 185 Coop Logistics AB 66 130 10% 167 Åtta.45 Tryckeri AB 12 11 2% Mountain Top 11 10 2% Unilever E
Slide 10: 2. Sustainable Growth
2. SUSTAINABLE GROWTH WHY FOCUS ON THE STOCKHOLM REGION? POPULATION STOCKHOLM REGION STOCKHOLM REGION 3 000 000 2022 – 2040 Forecasted CAGR of 0.77% • 78% By 2040 a total of 11.4m inhabitants are expected to live in Sweden. Forecasted population growth of 19,900 • The highest growth in absolute numb
Slide 11: 2. Sustainable Growth – Continued
2. SUSTAINABLE GROWTH – CONTINUED STRONG GROWTH PROSPECTS FUTURE • Expansion in greater Stockholm and Mälardalen. • Build critical mass in new markets. • New markets continuously evaluated • Focus on off market acquisitions of cash flow generating assets. • Investments in the existing portfolio of b
Slide 12: 3. Value Growth in Projects
3. VALUE GROWTH IN PROJECTS PROJECT PORTFOLIO WITH LARGE POTENTIAL • Fully developed up to an additional 657,000 sqm can be created, evidencing a substantial growth potential in the portfolio • The vast majority of the building rights are located in the greater Stockholm region. • The aim is to deve
Slide 13: 3. Value Growth in Projects – Continued
3. VALUE GROWTH IN PROJECTS – CONTINUED ONGOING PROJECTS 77% WITHIN GREATER • Development projects STOCKHOLM REGION within logistics, light industrial, and residential ongoing. 13 Investor Presentation
Slide 14: Tegelbruket in Botkyrka
3. VALUE GROWTH IN PROJECTS – CONTINUED TEGELBRUKET IN BOTKYRKA TEGELBRUKET • Example of underutilized asset in urban location. • Acquired in 2016 as a cash flow generating property, significant value unlocked through rezoning allowing for residential construction on underutilized parking lot. • Bui
Slide 15: Sustainability - Achievements
SUSTAINABILITY - ACHIEVEMENTS CLIMATE IMPACT KG CO2/SQ.M ENERGY INTENSITY KWH/SQ.M. DISTRIBUTION OF ENERGY SOURCES 6,00 140 41% 17% Renewables Non-renewables REDUCED CLIMATE IMPROVED ENERGY IMPACT BETWEEN 2017- EFFICIENCY PER SQ.M 2021 (KgCO2,e/sq.m) 135 BETWEEN 2017-2021 5,00 130 2% 4% 4,00 5% 125
Slide 16: New Sustainability Strategy Adopted 2022
NEW SUSTAINABILITY STRATEGY ADOPTED 2022 Added focus areas (Future proofing) Generally increased ambitions 16 Investor Presentation
Slide 17: 4. Finance: Highlights from Q4 Report
4. FINANCE HIGHLIGHTS FROM Q4 REPORT NET LETTING (MSEK) ECONOMIC OCCUPANCY (%) Excluding bankruptcy of second largest tenant 17 Exploria 16 15 14 14 14 92 91 91 8 90 4 4 89 89 89 1 88 88 88 88 88 1 87 87 87 87 -2 -2 -4 -6 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 -11 2019 2020 2021 2022 Q1 Q2
Slide 18: 4. Finance: Financial Targets
4. FINANCE – CONTINUED FINANCIAL TARGETS ROE (%) NAV GROWTH (%) 37 35 26 26 29 22 25 20 20 20 23 23 18 18 22 22 16 16 15 17 17 18 14 15 15% 13 12 12% 9 10 11 11 9 9 10 8 7 9 9 7 5 1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q
Slide 19: 4. Finance: Debt Funding
4. FINANCE – CONTINUED DEBT FUNDING DEBT FUNDING OVERVIEW LOAN MATURITY INTEREST FIXING SEKm SEKm 11% 2 500 3 000 2 700 2 122 2 000 2 500 1 780 18% 2 000 1 500 1 364 1 500 1 239 1 000 1 050 712 900 1 000 69% 500 335 434 500 10 0 0 0 Bank debt Sr Unsecured bond Hybrid bond • Total interest-bearing de
Slide 20: 4. Finance: Key Equity Ratios and Ownership Overview
4. FINANCE – CONTINUED KEY EQUITY RATIOS AND OWNERSHIP OVERVIEW % OF SHAREHOLDER % OF VOTES CAPITAL SEKm SEK/share STENDÖRREN REAL ESTATE AB 40,6 58,0 7 000 350 ALTIRA AB 9,0 13,8 LÄNSFÖRSÄKRINGAR FASTIGHETSFOND 10,3 5,8 6 000 300 SEB INVESTMENT MANAGEMENT 9,1 5,1 VERDIPAPIRFONDET ODIN EIENDOM 3,8 2
Slide 21: Assessed Earnings Capacity as of January 2023
4. FINANCE – CONTINUED ASSESSED EARNINGS CAPACITY AS OF 1 JANUARY 2023 • According to the company’s assessment, the total rental 824 179 income (after deductions for vacancies and discounts) on a rolling 12-month basis amounts to approximately SEK 824 645 million. • The company also estimates that c
Slide 22: Thank You!
THANK YOU! g a: aa: ° ig ‘
Stendörren Fastigheter — Q4 2022 Earnings Presentation on 6ix