Slide 1: Record strong NOI but higher interest costs
Q3 2023 presentation Record strong NOI but higher interest costs Liia Nõu, CEO Anneli Lindblom, CFO Anders Berg, Head of IR 26 October 2023
Slide 2: Investment highlights
Strategic position Investment highlights A global & Deep hotel expertise growing market Hotel properties only & flexible approach Inflation protection 1 Active in Travel & Tourism, a global and highly dynamic industry with strong structural growth drivers 2 Largest listed pure hotel property owner i
Slide 3: A strong and well-diversified business portfolio
Strategic position A strong and well-diversified business portfolio Pandox Property Operator Group Management Activities 159 139 20 Hotel properties Leased properties Operated properties 35,851 30,201 5,650 Rooms Rooms Rooms SEK 71.2bn SEK 58.9bn SEK 12.2bn Property market value Property market valu
Slide 4: Record high NOI but higher interest costs
Quarter in brief Record high NOI but higher interest costs Good demand in the hotel market ― New stabilised demand level based on current demand mix and seasonality Record strong NOI but higher interest cost ― Good operational performance in both business segments ― Total NOI increased by 10 percent
Slide 5: RevPAR above 2019
Pandox Property Management RevPAR RevPAR above 2019 1200 1,014 1,011 942 960 1000 891 777 760 800 661 531 600 400 200 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2019 2020 2021 2022 2023 Interim report Q3 2023 26 October 2023 5
Slide 6: ADR continues to drive RevPAR recovery
Hotel market development (vs 2019) ADR continues to drive RevPAR recovery 45% 45% ADR *Edinburgh 40% ADR June YTD September YTD Edinburgh 42% Norway Regional 25% Norway Regional 29% Oslo 22% 35% 35% UK Regional 28% London 23% Oslo 15% *London 23% *UK Regional 25% Brussels 14% 25% Stockholm 4% 25% Ma
Slide 7: Investing for growth
High quality project pipeline Investing for growth Property Location Business Operator Type of Completed segment investment Hotel Pomander Nuremberg, Operator Activities Pandox Total renovation Q3 2023 Germany Radisson Blu Glasgow, UK Operator Activities Pandox Renovation of rooms, H2 2024 Glasgow p
Slide 8: MSEK 320 for climate transition in Operator Activities
Eight hotels, three years, double-digit return on investment MSEK 320 for climate transition in Operator Activities Enables fulfillment of SBTi emission reduction targets for Operator Activities when completed Phasing out oil & gas Upgrade of technical Renewable energy systems for energy optimizatio
Slide 9: Strong operational performance
Financial summary Strong operational performance Continued good LFL growth Revenue and result (MSEK) 23Q3 22Q3 YoY LFL1) Pandox Group revenue2) 1,884 1,673 13% 8% Total revenue-based rents of MSEK 421 (378) Pandox Group NOI2,3) 1,142 1,059 8% 10% Record high revenues and NOI… Property Management rev
Slide 10: Higher yields offset by higher cash flows
Property portfolio Higher yields offset by higher cash flows MSEK Comment: Higher cash flows explained mainly by a strong average price development in large parts of the portfolio Approximately 96 percent of the properties externally valued in the past 12 months, based on value Reclassifications: To
Slide 11: Growth in EPRA NRV despite higher yields
Property portfolio Growth in EPRA NRV despite higher yields Average yield, % Average interest on debt EPRA NRV per share, SEK end of period, % 8 8 250 6.95 7 6.41 7 207.5 5.92 200 186.4 6 5.41 6 5 5 4.2 150 4 4 3 3 2.6 100 2 2 Property Management 50 1 1 Operator Activities 0 0 0 22'Q2 22'Q2 19'Q4 20
Slide 12: Stable LTV, resilient ICR and solid cash position
Key financial metrics Stable LTV, resilient ICR and solid cash position Loan-to-value, % Interest-cover-ratio, times Cash and unutilised (Target interval 45-60%) (Rolling twelve month basis) credit facilities, MSEK 60 5 6,000 4.1 55 5,000 4 4,215 50 4,000 46.8 3 2.8 46.0 45 3,000 2,988 2 40 2,000 Un
Slide 13: Well-proven financing strategy
Financial summary Well-proven financing strategy Well-proven financing strategy built on long-term Capital structure, per 30 September 2023 relationships with banks and shareholders Equity and mortgage-backed bank loans are Pandox’s sources of financing Net interest-bearing debt, MSEK 33,333 No mark
Slide 14: Continued financial flexibility
Financial summary Continued financial flexibility Refinancings in the corresponding amount of FY Key metrics (at end of period) 23Q3 22Q3 YoY approx. MSEK 13,778 completed YTD, nothing in Q3 2022 Net interest-bearing debt, MSEK 33,333 32,119 +4% 32,334 MSEK 8,028 of debt maturing within one year, EP
Slide 15: Positive outlook
Market outlook Positive outlook We expect continued stable demand in the hotel market in Q4 2023 Seasonally weaker demand from mid-December to mid-January Some growth expected in the hotel market 2024 Hotel demand is dependent on economic activity Main risks are geopolitical instability and its effe
Slide 16: Q&A
Q&A Interim report Q3 2023 26 October 2023 16
Slide 17: 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