Bewi Invest Asa · OSL:BINT
Bewi Invest Asa — KMC Properties — Q1 2021 Earnings Presentation
30 slides from Bewi Invest Asa's earnings presentation, May 28, 2021
Slide 1: KMC Properties ASA Q1 2021
KMC Properties ASA Q1 2021 28 May 2021
Slide 2: The preferred partner for logistics and industrial properties
The preferred partner for logistics and industrial properties
Slide 3: Todays' presenters
Todays’ presenters [Photo] [Photo] Liv Malvik Kristoffer Holmen CEO CFO 3
Slide 4: Disclaimer
Disclaimer This presentation, prepared by KMC Properties ASA (the "Company"), may contain statements about future events and expectations that are forward-looking statements. Any statement in this presentation that is not a statement of historical fact including, without limitation, those regarding
Slide 5: Company overview
Company overview 5
Slide 6: KMC Properties at glance
KMC Properties at glance We are KMC Properties … we deliver accretive growth …and have strong growth ambitions M&A (Contemplated) NOK 8bn CapEx Net yield Portfolio value NOK ~3.1bn M&A Est. additional 6.3 % NOK ~9 000 pr sqm (Completed) growth WAULT (years) Group net LTV Current Year-end 2021 2025 ~
Slide 7: Committed owners combining industrial expertise with financial strength
Committed owners combining industrial expertise with financial strength Main owners1 Ownership structure Selected investments Property experience EBE Eiendom Owned 50-50 by Bekken (41% ownership in KMC) family and Thoresen family Bekken family’s investment company, majority owner of Bekken Invest AS
Slide 8: 40-year history in the industrial property market
40-year history in the industrial property market 2006 2012 2014 2018 2020 BEWi acquires BEWi acquires BEWi operations Sites in Denmark Further acquisition Genevad, Swedish company encompassing all and Sweden sold to of real estates with effectively Thermisol along Nordic countries KMC; facilitating
Slide 9: Management team with solid finance and real estate development experience
Management team with solid finance and real estate development experience Liv Malvik, Chief Executive Officer Audun Aasen, Chief Operating Officer ▪ Previous experience as CEO of Heimdal ▪ +15 years experience from construction and real estate Eiendomsmegling AS (2018-2020), Grilstad Marina AS secto
Slide 10: Integrating ESG into KMC Properties' business operations
Integrating ESG into KMC Properties’ business operations To operate in a sustainable manner is important to KMC Properties and is seen as a prerequisite for the company’s long-term results and value creation. KMC will introduce a systematic approach towards understanding and managing the company’s i
Slide 11: Portfolio
cee Portfolio
Slide 12: Property value and yield
Property value and yield Gross asset value of property portfolio Gross asset value per country (%) NOK million 3,090 3,094 Russia Finland 3,000 Denmark 2% 5% 2,500 11% 2,000 Sweden 12% 1,500 58% Norway 1,000 13% 500 Netherlands 0 31.12.2020 31.03.2021 6.3% 6.3% 12
Slide 13: Properties on long lease agreements across strategic locations
Properties on long lease agreements across strategic locations Overview of portfolio and tenants Geographical locations 1 Other tenants2 Total Tromsø # of 22 9 1 7 39 3 properties Trondheim Share of operating 53% 25% 12% 10% 100% Important «logistics triangle» in Sweden income Oslo Stockholm Gothenb
Slide 14: Solid tenant base consisting of market-leading companies
Solid tenant base consisting of market-leading companies Company overview Key customers / brands % of operating income1 ▪ Founded in 1980 by Bekken family Key customers ▪ Leading European provider of packaging, components and insulation solutions ▪ Proven buy-and-build strategy with 19 deals execute
Slide 15: Flexible properties with "light" production
Flexible properties with “light” production Key property characteristics Buildings in low- ▪ Several of the properties constructed after 2000 and multiple upgrades maintenance conducted on older properties in recent years materials ▪ The majority of properties are constructed in low-maintenance mate
Slide 16: BEWI is largest tenant representing ~53% of operating income
BEWI is largest tenant representing ~53% of operating income Company overview Extensive production and logistics platform KMC-owned ▪ Founded in 1980 by Bekken family, who has developed the company into a leading European packaging x22 and insulation providers Other facilities x17 ▪ BEWi is strategi
Slide 17: Ambitious growth strategy for portfolio
Ambitious growth strategy for portfolio Investments in expansion projects for existing clients Acquisitions Contract renewal Investments in new facilities for and investments in new and existing clients current portfolio Acquisitions in collaboration with Greenfield current and new tenants, as well
Slide 18: Selected ongoing projects
Selected ongoing projects Expected Lease increase Est. total project Location completion annually Tenant cost (NOKm) Expansion projects (Capex) Ongoing projects existing tenants 2021 8.6 BEWI/Insula 70 New facilities (Capex) Fish box facility Senja Senja, Norway Q3 2021 7.0 BEWI 95 Acquisitions New
Slide 19: Selected ongoing projects
Selected ongoing projects Expected Lease increase Est. total project Location completion MNOK Q3-> Tenant cost (NOKm) M&A Contemplated 2021 33.8 Other 445 M&A Estimated additional growth 2021 24.5 Other 350 Sum 19
Slide 20: Financial profile
Financial profile 20
Slide 21: Existing contracts provide solid cash flow
Existing contracts provide solid cash flow Contractual gross rental income for the period 2021-20231 less estimated interests on the bond loan2 Comments NOK million ▪ Contracts with solid tenants, with COVID-19 resilient business models ▪ Low OPEX and SG&A expenses due to triple net bare-house lease
Slide 22: WAULT of ~10.7 years reduces refinancing risk
WAULT of ~10.7 years reduces refinancing risk Current WAULT1 at the end of year and tenants with contracts expiring during the period 2021-2027 Comments WAULT (years) ▪ 2 contracts expire 2021 – 2027: o BEWI at Levanger (2022) o BEWI at Torgård (2027) ▪ BEWI estimates cost of relocation to NOK 25-50
Slide 23: Interim report Q1 2021
Interim report Q1 2021 23
Slide 24: Highlights of the quarter
Highlights of the quarter Key events Key figures ▪ Strengthened the organisation with new hires NOK million Q1 2021 ▪ Integration of companies acquired in Q4 2020 Gross rental income 53.1 ▪ Mandatory offer by EBE Eiendom and Kverva Industrier completed Income from property management 3.2 ▪ Subsequen
Slide 25: Profit and loss statement
Profit and loss statement All amounts in NOK million Q1 2021 2020 Gross rental income 53.1 51.8 Direct property related expenses -4.2 -2.8 Net operating income 48.9 49.0 Other operational expenses and depreciation -24.6 -18.5 Net fair value Adjustments on Investment Property 65.1 404.6 Total operati
Slide 26: Financing
Financing Financing activity in the quarter Source of funds ▪ Utilised NOK 29.3 million of revolving credit facility RCF 2% Maturity profile and composition of interest-bearing debt All amounts in NOK million 0-1 yrs 1-2 yrs 2-3 yrs Revolving credit facility (RCF) 29.3 0 0 Bonds 0 1 850 Total 29.3 0
Slide 27: Balance sheet
Balance sheet All amounts in NOK million Q1 2021 2020 Total assets Investment properties 3 094 3 089 Other assets 115 81 Cash and cash equivalents 92 125 Total assets 3 301 3 295 Total shareholders’ equity and liabilities Equity 1 248 1 243 Bond 1 850 1 850 Other liabilities 203 202 Total shareholde
Slide 28: KMC Properties at glance
KMC Properties at glance We are KMC Properties … we deliver accretive growth …and have strong growth ambitions M&A (Contemplated) NOK 8bn CapEx Net yield Portfolio value NOK ~3.1bn M&A Est. additional 6.3 % NOK ~9 000 pr sqm (Completed) growth WAULT (years) Group net LTV Current Year-end 2021 2025 ~
Slide 29: Q&A
Q&A 29
Slide 30: KMC Properties
KMC il PROPERTIES