Slide 1: KMC Properties ASA Q2 2021
KMC Properties ASA Q2 2021 26 August 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: Second quarter 2021
Second quarter 2021 5
Slide 6: KMC Properties at glance
KMC Properties at glance We are KMC Properties … we deliver accretive growth …and have strong growth ambitions Committed NOKm pipeline ’22-24 NOKm M&A 5 000 (Contemplated) 8 000 Greenfield NOK 8bn Net yield Portfolio value 4 500 160 795 7 000 projects 235 4 000 355 NOK ~3.3bn 3 500 125 125 6 000 3 0
Slide 7: Solid client base of market leading companies with long track records
Solid client base of market leading companies with long track records and exposure to and attractive industry Company overview Key customers / brands % of net operating income1 Key customers ▪ Listed at the Oslo Børs ▪ Founded in 1980 by the Bekken family ▪ Leading European provider of packaging, co
Slide 8: Highlights of the second quarter
Highlights of the second quarter Key events Key figures ▪ Conditional offer accepted for production facility in Denmark for DKK 75 million NOK million Q2 2021 1H 2021 ▪ LOI with Slakteriet Holding AS to build a NOK 620 million slaughterhouse facility Gross rental income 53.7 106.8 ▪ Long-term lease
Slide 9: Property value and yield
Property value and yield Gross asset value and NOI yield development over time Total appraisal value and split per country1 NOK million Russia Finland 4% 2% 6.3% 6.3% 6.1% Denmark 11% 3,307 3,090 3,094 Sweden 11% NOK 3,307m2 58% Norway 13% Holland Q4 2020 Q1 2021 Q2 2021 NOI yield 9 1) All currency
Slide 10: 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 11: Selected ongoing projects
Selected ongoing projects Est. total project Expected Gross yield / cost / value of Location completion Yield-on-cost1 Tenant property (NOKm) Expansion projects (Capex) Ongoing projects existing tenants 2021 ~7.3% BEWI/Insula 125 New facilities (Capex) Fish box facility Senja Senja, Norway Q3 2021 ~
Slide 12: Selected ongoing projects
Selected ongoing projects Expected Gross yield / Est. total project Location completion Yield-on-cost1 Tenant cost (NOKm) M&A Contemplated 2021 ~7.7% Other 235 M&A Estimated additional growth 2021 ~7.0% Other 160 Sum / weighted avg 2021 ~7.4% 1 000 Greenfield projects 2022 - Salmon Slaughterhouse Fa
Slide 13: Financials
Financials 13
Slide 14: Key reported P&L metrics
Key reported P&L metrics P&L (NOK million) Comments ■ Stable rental income in Q2 compared to Q1 Q2 2021 Q1 2021 2020 ■ NOK 10.2 million in transaction costs in Q2 Gross rental income 53.7 53.1 51.8 compared to NOK 17.5 million in Q1. Direct property related expenses -2.0 -4.2 -2.8 ■ Net realised fin
Slide 15: Development in adjusted annualised run-rate
Development in adjusted annualised run-rate Annualised run-rate (NOK million) Comments ■ No change in Q1 due to no additional Q2 2021 Q1 2021 Q4 2020 agreements. Gross rental income 246.3 212.8 212.8 ■ Q2 2021 is based on final agreements as of 25 August 2021. Property related expenses -12.7 -12.5 -
Slide 16: Current run-rate
Current run-rate Run-rate bridge from GRI to IFPM Comments ■ GRI including income from the recently acquired property at Mongstad for NOK 285 million which will come into effect in Q3 2021 246.3 12.7 233.6 25.0 ■ Property cost at c. 5% of GRI and expected to remain stable due to the nature of the bu
Slide 17: Run-rate figures: Key metrics
Run-rate figures: Key metrics Gross rental income (NOKm) – Q2 2021 reported to run-rate Net rental income (NOKm) – Q2 2021 reported to run-rate 246.3 233.6 7.9 61.6 7.9 58.4 53.7 51.7 -1.2 Q2 2021 reported Rental income Run-rate rental income Annualised run-rate Q2 2021 reported Rental income Proper
Slide 18: Run-rate figures: Key metrics (continued)
Run-rate figures: Key metrics (continued) EBITDA (NOKm) – Q2 2021 reported to run-rate IFPM (NOKm) – Q2 2021 reported to run-rate 208.6 115.5 10.9 7.9 71.5 -1.2 10.9 52.2 28.9 -36.9 7.9 -3.4 14.7 -1.2 Q2 2021 Rental Property Opex Fair value Run-rate Annualised Q2 2021 Rental Property Opex Net realis
Slide 19: Existing contracts provide solid cash flow
Existing contracts provide solid cash flow Contractual gross rental income for the period 2021-20231 less estimated interests expenses2 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 contrac
Slide 20: Balance sheet at Q2 2021
Balance sheet at Q2 2021 Balance sheet build-up Comments ■ The portfolio is valued by Cushman & Wakefield Other Current quarterly. Total change in value in H1 2021 amounted assets liabilities to NOK 218 million bringing the property portfolio to Cash and NOK 3,307 million 84 cash 147 236 equivalents
Slide 21: Interest bearing debt
Interest bearing debt Financing activity in the quarter Source of funds ▪ Utilised NOK 173 million of revolving credit facility priced at 3m NIBOR + 225bps ▪ New bank term loan facility of NOK 326m at 3m NIBOR + 250bps 14% 7% Maturity profile and composition of interest-bearing debt 79% All amounts
Slide 22: Outlook and summary
Outlook and summary 22
Slide 23: KMC Properties at glance
KMC Properties at glance We are KMC Properties … we deliver accretive growth …and have strong growth ambitions Committed NOKm pipeline ’22-24 NOKm M&A 5,000 (Contemplated) 8,000 Greenfield NOK 8bn Net yield Portfolio value 4,500 160 795 7,000 projects 235 4,000 355 NOK ~3.3bn 3,500 125 125 6,000 3,0
Slide 24: Q&A
Q&A 24