Catena Ab · OMXSTO:CATE
Catena Ab — Q4 2022 Earnings Presentation
28 slides from Catena Ab's earnings presentation, February 2023
Slide 1: The leading property company in logistics
Q4 2022 Presentation Feb 2022 The leading property company in logistics 1
Slide 2: Q4 2022 Presentation
Q4 2022 Presentation Feb 2022 Q4 2022 Presentation Jörgen Eriksson, CEO Sofie Bennsten, CFO David Silvesjö, Chief Treasury Officer 2
Slide 3: Agenda
Q4 2022 Presentation Feb 2022 Agenda 1. Summary of latest quarter 2. Business overview 3. Business update 4. Financial update 5. Takeaway from today 6. Q&A 3
Slide 4: Q4 2022 summary: Standing strong and ready for 2023
Q4 2022 Presentation Feb 2022 Q4 2022 summary Standing strong and ready for 2023 • Rental income increased due to acquisitions, Profit from Property Management projects and indexation SEK M • Equity raise of 1.6 SEK Bn 954 824 • Continued investments in new development 719 • Attractive opportunies w
Slide 5: Business overview
Q4 2022 Presentation Feb 2022 2. Business overview Sector-leading portfolio and prime customer base 5
Slide 6: Business overview: Market update
Q4 2022 Presentation Feb 2022 Business overview Market update • Trying macro enviroment, strong players stand out • Market leaders with 3PL such as DHL, Postnord cementing their position • Segments such as Food and Beverage, Healthcare more unfazed • Sellers and buyers are starting to close deals •
Slide 7: Business overview: Portfolio
Q4 2022 Presentation Feb 2022 Business overview Portfolio Regions # of Lettable Fair Value Rental Economic Contractual Surplus properties area Tsqm SEK M value SEK letting ratio annual rent, ratio %2 M % SEK M1 Gothenburg 20 350 4,624 260 99 257 84 Helsingborg 26 501 5,118 322 98 314 78 Jönköping 10
Slide 8: Business overview: Customer base
Q4 2022 Presentation Feb 2022 Business overview Customer base Customers Share of contractual value Customer segments Logistics and transport DHL 11% 6% Food and beverage Postnord 7% 2% 2% Durable goods ICA 6% 3% Martin & Servera 6% 4% Construction and furnishing Boozt 4% 40% 3% Healthcare Nowaste Lo
Slide 9: Equity raise during Q4 2022
Q4 2022 Presentation Feb 2022 Business overview Equity raise during Q4 2022 Projects • Investment in new and current development ~ 1 SEK Bn • Strong customer demand enables 100 percent pre-let Energy 1.6 • Key investments within energy generation and storage SEK Bn ~ 500 SEK million • Low double dig
Slide 10: Business update
Q4 2022 Presentation Feb 2022 3 Business update Attractive growth enabled by our long-standing customer relationships, unique landbank and strong financial position 10
Slide 11: Business update: Acquisitions and divestments
Q4 2022 Presentation Feb 2022 Business update Acquisitions and divestments MAJOR ACQUISITIONS IN Q4 2022 Arendal 13:3 • Catena acquired two prime cold-storage Certified BREEAM assets from ICA Fastigheter Outstanding, won ”BREEAM Building • Located in Arendal, Göteborg and Upplands- of the year 2022”
Slide 12: Business update: Current development
Q4 2022 Presentation Feb 2022 Business update Current development Part of Dansered 1:64, Härryda Stenvreten 8:33, Enköping Tenant: Menigo, MM-Sport Tenant: Coop Investment: 1 056 SEK M Investment: 124 SEK M Sqm: 84 060 Sqm: 5 800 Finalized: Q4 2024 Finalized: Q1 2024 Norra Varalöv 31:11, Ängelholm S
Slide 13: Business update: Future development
Q4 2022 Presentation Feb 2022 Business update Future development E-City Engelholm Örebro South (JV, 34%) Ängelholm Törsjö 490 000 sqm land 920 000 sqm land Pending zoning plan Pending zoning plan Logistics position Söderåsen Stockholm South Bjuv Nykvarn/Södertälje 565 000 sqm land 450 000 sqm land P
Slide 14: Business update: Leasing update
Q4 2022 Presentation Feb 2022 Business update Leasing update Net leasing Maturity profile – WALE development Letting ratio contractual annual rent 98,0% SEK M 97,5% 97,2% 40% 250 5,5 5,5 35% 97,0% 200 150 30% 5,3 96,5% 100 25% 96,0% 50 20% 5,1 95,5% 0 15% 5 -50 4,9 95,0% 10% -100 94,5% 5% -150 2017
Slide 15: Business update: Sustainability
Q4 2022 Presentation Feb 2022 Business update Sustainability • 25 percent of lettable are environmentally certified • An 10 percentage point increase compared with 2021, now totalling ~549,000 sqm • Increase in produced solar energy with 86 % during 2022 • New biodiversity Key Performance Indicator
Slide 16: Financial update
Q4 2022 Presentation Feb 2022 4. Financial update Strong cashflows and balance sheet provides flexibility and opportunity 16
Slide 17: Financial update: Income
Q4 2022 Presentation Feb 2022 Financial update Income Rental Income Net Operating Surplus Profit from Property Management SEK M SEK M SEK M +11 % +11 % +16 % 1 544 1 220 1 387 1 095 954 1 264 1 004 824 1 183 903 1 091 828 719 627 892 671 571 440 360 395 309 274 212 230 2017 2018 2019 2020 2021 2022
Slide 18: Financial update: Rental development
Q4 2022 Presentation Feb 2022 Financial update Rental development • Continued strong like-for-like rental growth 2022 YoY • Divestment of Fröträdet 1 in Q2 impacted by 1% Like-for-like1 4.9 % • One-off effect related to tentant relocation in Q1 2022 Project development 2.9 % Acquisitions 5,8 % Dives
Slide 19: Financial update: Capital structure management
Q4 2022 Presentation Feb 2022 Financial update Capital structure management CATENA HAS BUILT A RESILITENT FINANCI AL POSITION SEK M Q4 2022 35 000 60% • Raised equity: 1.6 SEK Bn 30 000 50% • Enables profitable growth opportunities ahead 25 000 • Foster balance sheet strength 40% • Equity ratio of 5
Slide 20: Financial update: Financial policy update
Q4 2022 Presentation Feb 2022 Financial update Financial policy update 12 6,0 NEW KPI IN OUR FINANCI AL POLICY COMMITMENT 10 5,0 8 4,0 • New KPI - Net debt/EBITDA 6 3,0 • Target below 9x 4 2,0 2 1,0 0 0,0 2018 2019 2020 2021 2022 Net debt/EBITDA (left axel) Interest coverage ratio (right axel) 7.9x
Slide 21: Financial update: Debt and money management
Q4 2022 Presentation Feb 2022 Financial update Debt and money management SEK M 3 500 Debt maturity CATENA HAS BUILT A RESILIENT FINANCI AL POSITION 3 000 2 500 Debt management 2 000 • Low LTV and strong cash holding enables 1 500 development momentum 1 000 • 12-months of debt maturities safely cover
Slide 22: Financial update: Interest sensitivity
Q4 2022 Presentation Feb 2022 Financial update Interest sensitivity SEK M 4 500 Interest maturity profile 4 000 3 500 CATENA HAS BUILT A RESILITENT FINANCI AL POSITION 3 000 • Significant hedge against rising interest 2 500 2 000 rates 1 500 1 000 • 71% hedge ratio amounting to 7,6 Billion 500 SEK,
Slide 23: Financial update: Stress test
Q4 2022 Presentation Feb 2022 Financial update Stress test (assumption) CAT EN A RESILIENT ENO UG H FO R A M ARKET DRO P O F 47% SEK M Scenario – 1 (Yields expand) 30 000 100% • Yield requirements expands by 2.8 percentage points 90% 25 000 80% • Impact - A drop in market value of 47% corresponding
Slide 24: Financial update: Capital deployment
Q4 2022 Presentation Feb 2022 Financial update Capital deployment 2,398 Acquisitions (SEK M) Transactions 4 500 4 000 3 500 3 000 906 Divestments (SEK M) 2 500 2 000 1 500 1 000 500 0 Development CAPEX Capex 2017 2018 2019 2020 2021 2022 1,418 (SEK M) Acquisition CAPEX (net) Development CAPEX 24
Slide 25: Financial update: Property valuation
Q4 2022 Presentation Feb 2022 Financial update Property valuation 4.8 % EPRA NIY HIGHER YIELDS MITIGATED BY HIGHER RENT LEVELS • Value changes Q4 2022 35 000 7,00% • - 365 SEK M of unrealized value change 30 000 6,00% • Higher rents mitigate yield expansion 25 000 5,00% • Slighty higher operating co
Slide 26: Takeaway from today
Q4 2022 Presentation Feb 2022 5. Takeaway from today 26
Slide 27: Takeaway from today
Q4 2022 Presentation Feb 2022 Takeaway 1. Going into 2023 with strong fundamentals from today 2. Resilient financial profile driven by strong cash flows and low LTV 3. Opportunistic about new transactions and new development 27
Slide 28: Q&A
Q4 2022 Presentation Feb 2022 Q&A Jörgen Eriksson, CEO Sofie Bennsten, CFO David Silvesjö, Chief Treasury Officer 28