Bewi Invest Asa · OSL:BINT
Bewi Invest Asa — KMC Properties — Q1 2023 Earnings Presentation
28 slides from Bewi Invest Asa's earnings presentation, May 4, 2023
Slide 1: Q1 2023 KMC Properties ASA Results Presentation
Q1 2023 KMC Properties ASA Results Presentation | 4 May 2023
Slide 2: The preferred real estate partner for logistic and industrial companies
The preferred real estate partner for logistic and industrial companies
Slide 3: 40+ years of industrial knowhow
40+ years of industrial knowhow KMC footprint 65 properties ~574,000 sqm Q1 2023 WAULT1 Gross Asset Value1 % Net yield1 NOK 6.0 bn 6.9% 11.1 years NOK ~10,400 pr sqm 56.0% EPRA LTV2 3 1) KMC Property ASA portfolio is valued by third party Cushman & Wakefield quarterly (WAULT = Weighted average unexp
Slide 4: Properties with strong local dependency
Strategic locations Properties with strong local dependency Strong financial profiles and established sectors Example properties Infrastructure investments creating stickiness Klädesholmen Seafood AB, Rönnäng PSW Technology AS, Mongstad (NO) BEWI EPS AS, Senja (NO) BEWI Insulation A/S, Hedenstad (DK
Slide 5: Executing on expansive growth strategy
Executing on expansive growth strategy GAV, net yield and WAULT development Key focus areas NOK billion, %, years 6.0 5.4 Acquisitions in collaboration with current and new tenants, and other parties 4.4 4.0 4.0 4.1 3.7 3.3 6.9% 6.9%1 3.1 6.2% 6.4% 6.4% 6.4% 6.5% Greenfield development of new facili
Slide 6: Contractual rent growth from acquisitions and contract adjustments
Contractual rent growth from acquisitions and contract adjustments Annual contractual rent NOK million ▪ Continuous process to extend or renew 450 contracts Year end 2022 400 Q1 2023 additions ▪ Identification of potential for investments in existing portfolio 350 ▪ Acquisitions of new properties me
Slide 7: Well positioned for navigating high inflation environment
Well positioned for navigating high inflation environment Solid tenants with Industry exposure with Solid framework long track records strong local presence mitigating risks % of net income Insulation, Packaging & Components Currency and interest swaps 50% Founded in 1980 37% hedge ratio currently r
Slide 8: Operational review
= Operational review os
Slide 9: Acquisitions – Logistics property Narvik
Acquisitions – Logistics property Narvik Skarvenesveien 3, Narvik Acquisition criteria GAV NOK 90m ▪ Targeting high yield industrial- and logistic properties with long lease agreements and solid NOK 8.0m1 GRI tenants ▪ Strategic locations for tenants Gross ▪ Substantial relocation cost for % yield 8
Slide 10: Acquisitions – BEWI portfolio
Acquisitions – BEWI portfolio Total NOK 1.3 billion acquired, remaining potential NOK 0.65 billion Gross asset value, NOK billion Acquisition criteria 1.9 ▪ Targeting high yield industrial- and logistic properties with long 0.7 lease agreements and solid 1.3 tenants 0.3 0.9 ▪ Strategic locations for
Slide 11: Greenfield projects progressing as planned
Greenfield projects progressing as planned Greenfield Completion Value Remaining Gross yield2 WAULT Development project1 (estimated) (NOKm) investments • Conditional long-term lease agreement with BEWI Packaging hub • Construction work started in September for BEWI 2022 H2 2023 200 112 7.5% 15.0 at
Slide 12: Investments in existing properties
Investments in existing properties ▪ Maintaining a close relation with customers to actively identify and engage in business development activities ▪ Project and real estate development makes it possible to meet the changing needs of tenants ▪ Maintenance investments of NOK 14.8 million across five
Slide 13: ESG projects
ESG projects Action Solar PV installations ESS Battery installations Improving energy labelling of properties • Current total production of 400 000+ kWh/yr from • Battery installations to create sustainable • KMC is currently mapping the energy classification installations at Mongstad, Ågotnes and s
Slide 14: Current pipeline of value accretive opportunities
Current pipeline of value accretive opportunities % Gross Asset Value Gross yield WAULT NOK million % Years Status Q1 2023 5,993 6.9% 11.1 CAPEX 49 8.4% 15.0 • Yield accretive contract adjustments 794 6.9% 18.9 • Reflecting remaining investments in ongoing projects Greenfield • Positive yield effect
Slide 15: Financial review
15 Financial review gfe
Slide 16: Gross rental increase on a stable cost base
Gross rental increase on a stable cost base Profit and loss1 ▪ Rental income +52% Q1’23 vs Q1’22 NOK million • CPI adjustments account for around 50% of the increase • Remainder of the increase is mostly from new investments Q1’23 Q1’22 FY’22 FY’21 Rental income 96 63 273 205 ▪ EBITDA increase +66%
Slide 17: Earnings driven by income from property management
Earnings driven by income from property management Earnings per share (EPS) last twelve months NOK 0.76 0.68 0.21 -0.13 0.22 0.17 0.29 Q1 2023 0.25 Net income from property Changes in value of Unrealised financials Earnings per IFRS Adjustments for Adjustments for values EPRA earnings management aft
Slide 18: Financial and operational visibility
Financial and operational visibility Annualised run-rate ▪ Additional rental income from new investments and NOK million, 12 months forward CPI adjustments ▪ Low increase in property related expenses due to Q1’231 Q4’22 Q3’22 Q2’22 triple net bare house contracts Rental income 412 371 284 268 ▪ Admi
Slide 19: EBITDA to interest expense gap increasing
EBITDA to interest expense gap increasing EBITDA to interest expense gap ▪ New investments, renewals and CPI adjustments set Annualized run-rate 12 months forward, NOK million to increase overall EBITDA 400 ▪ BEWI-transaction highly EBITDA accretive • Two transactions of NOK 925 million and NOK 350
Slide 20: Balance sheet set to support continued growth
Balance sheet set to support continued growth Balance sheet ▪ Main property portfolio changes for Q1’23 NOK million • Change in value1 of investment properties of NOK 6 million 6,330 6,330 Other assets 116 55 • Expansion projects, investments in new facilities, and 166 acquisitions of NOK 490 millio
Slide 21: Interest bearing debt overview
Interest bearing debt overview Capitalization table Interest bearing debt NOKm Share of total % Construction loan Revolving credit facility 1.1% Loan amount Current interest % Margin % 5.8% Bond loan 1850 7.73% 4.25% Bank loan 1348 6.45% 2.64% Bank loan 39.2% 53.8% Bond loan Construction loan 38 6.2
Slide 22: Outlook
22 - Outlook
Slide 23: Considerable uncertainty about future economic development
Considerable uncertainty about future economic development ▪ Improved international growth prospects ▪ Consumer price inflation among Norway’s main trading partners has receded in recent months due partly to gas and electricity prices ▪ Futures prices for the coming year are lower than in December ▪
Slide 24: Value accretive growth
Value accretive growth Year end 2024 gross asset value target NOK billion 8.0 8.0 Additional growth 1.2 Step-change transaction with BEWI set to unlock Investment pipeline 6.8 potential for interest margin compression 0.0 6.0 0.8 5.4 Continued accretive activities based on a defined set of investmen
Slide 25: scl procanizs
scl procanizs
Slide 26: Appendix pipeline
26 - Appendix pipeline
Slide 27: Pipeline investments
Pipeline investments Completion Value Remaining Gross Type1 Tenant WAULT Country (estimated) (NOKm) investments Yield CAPEX BEWI (Thorsø) Q2 2024 39 39 8.5 % 15.0 NO CAPEX Sentrallageret (Kuraas) Q2 2023 10 10 7.9 % 15.0 NO Greenfield BEWI (Jøsnøya, Hitra) H2 2023 200 112 7.5 % 15.0 NO Greenfield Sl
Slide 28: Slide 28