Slide 1: The preferred real estate partner for logistics and industrial companies
The preferred real estate partner for logistics and industrial companies KMC Properties ASA Q2 2023 results presentation | 10 August 2023
Slide 2: Q2 2023 Highlights
Q2 2023 Highlights Continued value accretive growth, reduced overall interest margin and CPI adjustments reducing high inflation impact ▪ +60% increase in rental income to NOK 103.6 million Key figures vs. Q2’22 (weighted average CPI adjustment of 7.5% on 1 January 2023) WAULT1 ▪ +42% increase net i
Slide 3: Value accretive growth diversifying across industries and regions
Value accretive growth diversifying across industries and regions Founded in 1980 by, with a focus on Lofotprodukt established in 1994, as the ~2x asset base Gross Asset Value (NOK billion) and net yield production of packaging and building inception of Insula, focused on insulation products product
Slide 4: Building on +40 years of industrial knowhow
Building on +40 years of industrial knowhow Focus on four key areas Industry exposure (share of rent) Acquisitions CAPEX 17 tenants Other 65 properties 13% 572,000 sqm 11.0 yrs wault 26% 52% Acquaculture 8% Packaging, Energy components, & insulation Kastor Capital Greenfield Invest optimization
Slide 5: Accretive acquisition of five properties H1 2023
Accretive acquisition of five properties H1 2023 Logistics property in Narvik Danish light industry property 3x Finnish light industry properties Property value NOK 90.0 million DKK 52.8 million EUR 20.3 million Rental income NOK 8.0 million (2024) DKK 3.5 million EUR 1.6 million WAULT 12 years 17 y
Slide 6: Contract structure reducing inflation impact
Contract structure reducing inflation impact Triple net bare house contract structure with CPI adjustments Gross Single-net Double-net Triple-net ▪ 7.5 % CPI-adjustment on 1 January 2023 on 99% of annual contractual rent Rent Tenant Tenant Tenant Tenant ▪ Low run rate property related costs (1.2% of
Slide 7: Reduced overall interest margin in major refinancing
Reduced overall interest margin in major refinancing Improved debt structure at reduced interest margin Long term debt % of total and interest margin ▪ New debt refinancing NOK 1,850 million senior secured bond and fully drawn RCF 100% ▪ Reducing KMC Properties overall interest margin from 3.47% to
Slide 8: Financial and operational visibility on current assets
Financial and operational visibility on current assets Annualised run-rate Rental income 424 ▪ Reinvesting excess capital in new accretive opportunities Net income from 165 ▪ Reflecting NOK 0.48/share vs share price of NOK 5.5/share property management ▪ Providing ample headroom to overall projected
Slide 9: Financial review
Financial review 9
Slide 10: Gross rental increase on a stable cost base
Gross rental increase on a stable cost base Profit and loss1 ▪ +60% rental income increase Q2’23 vs Q2’22 NOK million • Weighted average CPI adjustment of 7.5% on 1 January 2023 Q2 2023 Q2 2022 YTD 2023 YTD 2022 Rental income 104 65 199 127 ▪ +69% EBITDA increase Q2’23 vs Q2’22 showcasing Property e
Slide 11: Earnings driven income from property management
Earnings driven income from property management Share price: NOK 5.51 Earnings per share (EPS) last twelve months 0.63 NOK per share 0.05 0.14 0.44 0.14 0.53 0.03 LTM Q2’23 0.33 Q2’23 0.10 Net income Changes in value Unrealized IFRS EPS Ajd. For Adj. for values of Adj. EPRA from property of investme
Slide 12: Financial and operational visibility
Financial and operational visibility Annualised run-rate1 ▪ Additional rental income vs Q1’23 from NOK 50 NOK million, 12 months forward million in yielding CAPEX and Greenfield investments Q2’23 Q1’23 Q4’22 Q3’22 Q2’22 ▪ Property related expenses flat due to triple net Rental income 424 412 371 284
Slide 13: EBITDA to interest gap maintained through refinancing and swaps
EBITDA to interest gap maintained through refinancing and swaps Refinanced at improved terms – effective from July’23 EBITDA to interest gap maintained Annualized run-rate 12 months forward, NOK million NOK million Current terms 30 June July 30 June July 2023 Improve- 2023 2023 2023 ment 375 375 364
Slide 14: Reduced refi risk with limited increase in LTV
Reduced refi risk with limited increase in LTV LTV per quarter end and post refinancing Debt maturity profile (NOKm) Bond Bank 30 June 2023 1,907 56.4% 56.9% 1,850 691 492 84 691 57 84 0-1 yrs 1-2 yrs 3-4 yrs 4+ yrs July 2023 (post refinancing) 2,356 900 808 30 June ’23 July ’23 57 84 1,456 . 57 0 8
Slide 15: Comfortable headroom to ICR covenants
Comfortable headroom to ICR covenants ICR forecast Rolling 12m ICR 3M IBOR %1 1.8 5.5 5.0 5.0 4.9 4.9 1.7 1.7 1.7 4.7 1.7 4.5 4.4 4.1 4.1 1.6 4.0 3.9 3.9 3.9 3.9 1.6 4.0 3.8 3.6 3.8 3.8 3.7 3.7 3.6 3.6 3.5 1.5 Covenant 3.0 1.4 2.5 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q2 2023 Q3 2023 Q4 2023 Q1 20
Slide 16: Outlook
Outlook 16
Slide 17: Robust platform for continued value accretive growth
Robust platform for continued value accretive growth 6.9% Net yield on NOK 6 billion assets Solid tenants in attractive Business critical assets Downside protection from Contractual frameworks in industries with sticky features high residual value place to reduce risk 13% 8% 26% Aquaculture Location
Slide 18: Continued value accretive growth
Continued value accretive growth Year end 2024 gross asset value target NOK billion 8.0 Additional growth 1.2 Building on a strong position: 6.0 6.0 0.8 ▪ 100% CPI adjustments on 99% of contracts, 5.4 ▪ with reduced overall interest margin, and a 4.0 ▪ growing asset base with robust tenants 3.1 Cont
Slide 19: scl procanizs
scl procanizs
Slide 20: Appendix pipeline
20 - Appendix pipeline
Slide 21: Pipeline investments
Pipeline investments Completion Value Remaining Gross Type1 Tenant WAULT Country (estimated) (NOKm) investments Yield CAPEX BEWI (Thorsø) Q2 2024 39 36 8.5 % 15.0 NO CAPEX Sentrallageret (Kuraas) Q3 2023 10 4 7.9 % 15.0 NO Greenfield BEWI (Jøsnøya, Hitra) H2 2023 200 84 7.5 % 15.0 NO Greenfield Slak
Slide 22: Slide 22