Stendoerren Fastigheter Ab Class B · OMXSTO:STEF_B
Stendoerren Fastigheter Ab Class B — Stendörren Fastigheter — Q1 2024 Earnings Presentation
27 slides from Stendoerren Fastigheter Ab Class B's earnings presentation, May 3, 2024
Slide 1: First Quarter 2024
FIRST QUARTER 2024 STENDÖRREN
Slide 2: Snapshot of Stendörren
SNAPSHOT OF STENDÖRREN SEGMENT (area) GEOGRAPHY (rental income) LIGHT INDUSTRY Warehouse and Stockholm municipality, LOGISTICS logistics, 48% Light industrial, 21% 30% Rest of Stockholm, 31% Office, 20% WAREHOUSE Rest of Mälardalen, 31% Retail, 10% Gothenburg region, 1% RESIDENTIAL BUILDINGS RIGHTS
Slide 3: Stendörren History in Short
STENDÖRREN HISTORY IN SHORT PROPERTY VALUE 2024 PROPERTY VALUE 2023 12.4 PROPERTY BN VALUE 2022 12.6 PROPERTY VALUE 2021 12.4 BN 150 PROPERTIES PROPERTY VALUE 2020 11.7 BN 151 PROPERTIES PROPERTY VALUE 2019 9.5 BN 148 PROPERTIES 2024 PROPERTY VALUE 2018 8.9 BN 135 PROPERTIES 2023 PROPERTY VALUE 2017
Slide 4: 4 Reasons to Invest in Stendörren
4 REASONS TO INVEST IN STENDÖRREN 1. STABLE CASH FLOW 2. 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 Excluding bankruptcy of second largest tenant Exploria NET LETTING (MSEK) STRONG RENTAL INCOME AND NOI GROWTH 16 15 17 14 14 • Full effect from CPI-related rent increase • 7% y-o-y NOI increase 8 7 8 5 STRONG LETTING 1 1 1 • Continued strong renegotiation of lease agreemen
Slide 6: Financial Highlights
FINANCIAL HIGHLIGHTS ROE (%) REVALUATIONS EFFECTS FINANCIAL 26 26 22 KEY FIGURES NEGATIVELY 20 18 16 • LTM SEK -408m on property portfolio 15 14 12% 9 9 10 8 9 7 7 5 INTEREST-RATE RESILIANCE 1 -3 -6 -5 -5 • Approx 80% of interest-bearing debt hedged with a Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 7: Sustainability - Achievements
SUSTAINABILITY - ACHIEVEMENTS CLIMATE IMPACT KG CO2/SQ.M ENERGY INTENSITY KWH/SQ.M. DISTRIBUTION OF ENERGY SOURCES 4,50 140 32% 36% Renewables Non-renewables REDUCED CLIMATE IMPROVED ENERGY 4,00 IMPACT BETWEEN 2018- EFFICIENCY PER SQ.M 2023 (KgCO2,e/sq.m) 130 BETWEEN 2018-2023 3,50 2% 2% 120 3,00 4%
Slide 8: Sustainability Strategy
SUSTAINABILITY STRATEGY OVERALL GOAL: NET ZERO CARBON EMISSIONS ACROSS OUR ENTIRE OPERATIONS BY 2040 -23.1% Reduction of energy intensity (kvh/kvm) as of 31 March, 2023, compared with base year 2020 61.5% Environmentally certified area out of total area, as of 31 March, 2023 8 Investor Presentation
Slide 9: Sustainability Offering
SUSTAINABILITY 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 heating certification Charging stations Biodiversity 9 Investor P
Slide 10: Future Focus for Profitable Growth
FUTURE FOCUS FOR PROFITABLE GROWTH INCREASED GROWTH FOCUS FOLLOWING LEASE WITH THE SWEDISH FORTIFICATIONS AGENCY, NEW PROJECTS ADDED TO PIPELINE AND SECURED COST OF CAPITAL ASSET • Capitalise on embedded rental growth potential given the asset class in growing macro- / urban micro locations MANAGEME
Slide 11: Thank You!
THANK YOU! i NN ee | ie Sal — 7 Raat juin, | TS _ en
Slide 12: Appendix
APPENDIX 12 Investor Presentation Picture: Almnäs Deveopment Phase II
Slide 13: Business Idea, Market, Financial Objectives
INTRODUCTION BUSINESS MARKET FINANCIAL IDEA OPPORTUNITY OBJECTIVES Stendörren creates profitable growth The properties are strategically located in Return on equity of at least 12 % in net asset value by managing, growth areas (population and economic), EPRA NAV growth of at developing and acquiring
Slide 14: 4 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 such as Greater industrial properties with long leases Stockholm and the Mälardalen region • Diversified tenant base of both w
Slide 15: 1. Stable Cash Flow
1. STABLE CASH FLOW DIVERSIFICATION WITH FOCUS ON GREATER STOCKHOLM PROPERTY PORTFOLIO OVERVIEW • Stendörren has a property portfolio of SEK 12,400m, with a property yield of 6.6%1 as per 31 March 2024 • Rental value2 of SEK 882 with an economic occupancy rate of 93% as per 31 March 2024 • Lease agr
Slide 16: 1. Stable Cash Flow – Continued
1. STABLE CASH FLOW – CONTINUED DIVERSIFIED TENANT BASE LARGEST TENANTS AS PER Q1 2024 LEASE MATURITY BY RENTAL INCOME Rental Share of Rental area, Tenant income, total rental th. sq.m. SEKm income 410 Coop Logistik AB 69 130 9% 288 Åtta.45 Tryckeri AB 14 11 2% 327 Mountain Top 12 9 2% Stockholm Vat
Slide 17: 2. Sustainable Growth
2. SUSTAINABLE GROWTH WHY FOCUS ON THE STOCKHOLM REGION? POPULATION STOCKHOLM REGION STOCKHOLM REGION 3 000 000 2022 – 2040 • The gross regional product in Stockholm per capita is ca 40% Forecasted CAGR of 0.77% Forecasted population higher than the national average growth of 19,900 2010 – 2021 2 75
Slide 18: 3. Value Growth in Projects
3. VALUE GROWTH IN PROJECTS PROJECT PORTFOLIO WITH LARGE POTENTIAL Envisaged main Estimated building Estimated Possible Municipality Status Zoning use right sq. m.1 Construction Start 2 • Fully developed up to an Upplands-Bro Logistics 377 000 Within current zoning 2024-2025 additional 641,000 sqm c
Slide 19: 3. Value Growth in Projects – Continued
3. VALUE GROWTH IN PROJECTS – CONTINUED ONGOING AND COMPLETED PROJECTS Q1 2024 Estimated Estimated Size Property Description investment3 Current Phase completion1 sq. m.2 SEKm Filmremsan 2 Reconstruction Q3 2024 2 400 37 Construction started Stenvreten 8:37 New logistics Q4 2024 9 500 158 • Developm
Slide 20: Case Study: Almnäs – Transforming an Area
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 from Peab. The buildings hi
Slide 21: Case Studies: Stenvreten 8:37 Advania Dream House
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 22: 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 23: 4. Finance – Highlights from Q1 Report
4. FINANCE HIGHLIGHTS FROM Q1 REPORT NET LETTING (MSEK) ECONOMIC OCCUPANCY (%) Excluding bankruptcy of second largest tenant Exploria 17 16 15 14 14 95 94 94 94 93 8 8 92 7 91 91 5 90 89 89 89 1 1 1 88 88 87 87 87 -2 -1 -2 -4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 -11 2020 2021 2022 2023
Slide 24: 4. Finance – Financial Targets
4. FINANCE – CONTINUED FINANCIAL TARGETS ROE (%) NAV GROWTH (%) 37 35 26 26 29 20 22 25 16 18 22 15 14 17 18 15 9 9 10 8 9 13 12 12% 7 7 15% 11 11 10 9 5 9 1 -3 -6 -5 -5 1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 -1 -5 -8 -3 -4 2019 2020 2021 2022 2023 2024 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 25: 4. Finance – Debt Funding
4. FINANCE – CONTINUED DEBT FUNDING DEBT FUNDING OVERVIEW LOAN MATURITY INTEREST FIXING SEKm SEKm 7% 2 500 2 284 3 000 2 700 15% 2 392 2 000 1 780 2 500 1 528 1 900 2 000 1 500 1 356 1 500 1 000 1 000 79% 500 500 36 9 0 0 0 0 0 Bank debt Sr Unsecured bond Hybrid bond • Total interest-bearing debt am
Slide 26: 4. Finance – Key Equity Ratios and Ownership Overview
4. FINANCE – CONTINUED KEY EQUITY RATIOS AND OWNERSHIP OVERVIEW SEKm SEK/share % OF SHAREHOLDER % OF VOTES 7 000 350 CAPITAL STENDÖRREN REAL ESTATE AB 40,6 58,0 6 000 300 ALTIRA AB 10,2 14,5 SEB INVESTMENT MANAGEMENT 12,7 7,1 LÄNSFÖRSÄKRINGAR 5 000 250 FASTIGHETSFOND 8,6 4,8 TREDJE AP-FONDEN 3,8 2,1
Slide 27: 4. Finance – Assessed Earnings Capacity
4. FINANCE – CONTINUED ASSESSED EARNINGS CAPACITY AS OF 1 APRIL 2024 • According to the company’s assessment, the Assessed earnings capacity total rental income (after deductions for vacancies and discounts) on a rolling 12-month Rental Income 882 basis amounts to approximately SEK 882 million. Tota
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