Kaldalon Hf · OMXICE:KALD
Kaldalon Hf — H1 2023 Earnings Presentation
33 slides from Kaldalon Hf's earnings presentation, Sep 1, 2023
Slide 1: Six-month statement 2023
Six-month statement 2023 Presentation for stakeholders 1 September 2023
Slide 2: Foundation laid
Foundation laid GOOD OPERATING PERFORMANCE – ACCESS TO MARKET FINANCING – LISTING ON NASDAQ ICELAND Kaldalón’s evolution as a real estate company began two years ago. The foundation of the Company has now been laid and the property portfolio has reached a a feasible operational size. Operation in th
Slide 3: Key indicators for the period
Key indicators for the period SIGNIFICANT INCREASE IN REVENUE AND GROWING PROPERTY PORTFOLIO • Revised six-month statement • The Company’s investment assets stand at 49.2 billion ISK (2022: 41.7 billion) • Total assets 52.5 billion ISK (2022: 45.5 billion) • Agreement on 102,500 m2*. • Favourable op
Slide 4: Agenda
Agenda SIX-MONTH STATEMENT 2023 - PRESENTATION FOR STAKEHOLDERS 1. Kaldalón today 2. Operation over the period 3. Financial statements 4. Prospects and market listing PRESENTATION FOR SHAREHOLDERS - KALDALÓN HF. 4
Slide 5: Kaldalón in a nutshell
Kaldalón in a nutshell REAL ESTATE COMPANY WITH A DIVERSE PORTFOLIO Kaldalón is a real estate company with a Moderate leverage The Company aims for a leverage ratio* of approximately 55% in normal operation. diverse portfolio of properties in the greater The Company’s base prospectus provides for th
Slide 6: Diversified ownership
Diversified ownership CHANGES IN OWNERSHIP SINCE THE START OF TRANSFORMATION Since the transformation of the Company began the number of shareholders has May 2021 June 2023 quadrupled. At period-end shareholders 120 shareholders 582 shareholders were 582 as compared to 120 previously. The Company is
Slide 7: Scenario – all assets income-generating
Scenario – all assets income-generating SIX-MONTH STATEMENT ASSUMING FULL OPERATING PERIOD OF ASSETS - SCENARIO Kaldalón is in a phase of rapid growth and so a proportionally large 1 2 3 part of the assets on its balance sheet are income-generating for only a part of the year or non-income-generatin
Slide 8: Financing
Financing THE COMPANY NOW HAS ACCESS TO MARKET FINANCING CONCURRENTLY WITH BANK FINANCING. One of the four targets set by the board At the start of the transformation process it was adopted as a premise that financing the for achievement prior to listing in the Nasdaq Iceland was completion by the C
Slide 9: Agenda
Agenda SIX-MONTH STATEMENT 2023 - PRESENTATION FOR STAKEHOLDERS 1. Kaldalón today 2. Operation over the period 3. Financial statements 4. Prospects and market listing PRESENTATION FOR SHAREHOLDERS - KALDALÓN HF. 9
Slide 10: Principal milestones of the period
Principal milestones of the period KEY INDICATORS 30/6/2023 (31/12/2022) Portfolio trend by quarter (m2) 120.000 100.000 98.3 (98.9) 17.2 (16.2) 49,255 (41,711) 80.000 60.000 % % ISK million m2 40.000 Rate of rental* Return on equity Investment assets 20.000 0 2021 2021 2021 2022 2022 2022 2022 2023
Slide 11: Income distribution
Principal milestones of the period BUSINESS OPERATION – ON A PROPER COURSE (30/06/2022) 2.1 1,438 m ISK 284 m ISK 80.2 % 17.2 % 11.3 year (1.8) (586) (241) (59%) (33%) (12 year) PRE-TAX PROFIT OPERATING OPERATING AVERAGE CONTRACT NOI RATIO RETURN ON EQUITY REVENUE EXPENSE DURATION Income distributio
Slide 12: Trading in real estate
Trading in real estate RECENT TRANSACTIONS ONLY INCOME-GENERATING FOR PART OF PERIOD OR NON-INCOME-GENERATING 100% 100% 100% 100% 100% 100% Income over the period** 50% 50% 50% 50% 50% 50% 0% 0% 0% 0% 0% 0% Hafnagarður ehf. Borgartún 32 Laugavegur 18 Tangavegur 7 Álfhella 5 Klettagarðar 8-10 ehf. Re
Slide 13: Investment assets overview of deliveries
Investment assets overview of deliveries COMPANY’S INVESTMENT ASSETS INCREASING STEADILY Investment assets Properties under Q1 Q2 Q3 Q4 Q1 (30/6) (m2) construction 2023 2023 2023 2023 2024 100% 5.300 90% 18.300 Köllunarklettsvegur 1 80% C. 53% of asset delivered. Completion scheduled for year-end. N
Slide 14: Property portfolio
Property portfolio INCOME-GENERATING REAL PROPERTIES BASED ON ANNOUNCED TRANSACTIONS Kaldalón 5% Asset Classes 29% Office premises ▪ Kaldalón is a company with a 31% Retail and services diversified portfolio. Warehouses and ▪ In the long term the Company will industry seek to ensure that no single a
Slide 15: Agenda
Agenda INTERIM FINANCIAL STATEMENT - PRESENTATION FOR STAKEHOLDERS 1. Kaldalón today 2. Current operation 3. Financial statements 4. Prospects and market listing PRESENTATION FOR SHAREHOLDERS - KALDALÓN HF. 15
Slide 16: Highlights of operation
Highlights of operation FINANCIALS Operating profit ratio 1H23 (1H22) Operating profit ratio 80.2% 80.2 % (59%) Operating profit before changes in valuation exceeded net financial expenses despite higher interest rate Profit before taxes (m ISK) Income-weighted occupancy ratio 98.3% - average contra
Slide 17: Income Statement
Income Statement FINANCIAL STATEMENTS ARE NOW COMPARABLE BETWEEN YEARS FOR THE FIRST TIME SINCE THE COMPANY’S TRANSFORMATION Operating income increased by 145% between years About 75% of investment assets on the balance sheet as 1,438m at 30/6 generated income over the entire period. Income Statemen
Slide 18: Income Statement
Income Statement FINANCIAL STATEMENTS ARE NOW COMPARABLE BETWEEN YEARS FOR THE FIRST TIME SINCE THE COMPANY’S TRANSFORMATION The largest part of the value adjustment results from the valuation of assets entering the valuation for the first 2,013m time, price level increases and renewal of older leas
Slide 19: Balance sheet
Balance sheet TOTAL ASSETS OF THE GROUP APPROX. 52.5 BILLION ISK 30 June 31 Dec. 2022 2023 Fixed assets The increase in investment assets was 49.3billion Investment assets 49,255 41,711 Long-term receivables 838 669 approximately 20% over the period. 50,093 42,380 About 75% of investment assets were
Slide 20: Balance sheet
Balance sheet TOTAL ASSETS OF THE GROUP APPROX. 52.5 BILLION ISK 30 June 31 Dec. 2022 2023 Fixed assets 22.1 billion Investment assets 49,255 41,711 Equity ratio 42% at the end of the period Long-term receivables 838 669 50,093 42,380 No new shares were issued over the period Equity Current assets R
Slide 21: Financing
Financing WEIGHT OF UNINDEXED LIABILITIES SIGNIFICANTLY EXCEEDS INDEXED LIABILITIES Interest-bearing liabilities 25.0 billion (19.8 billion ISK) 43 % (33%) Indexed liabilities at end of period 57 % (67%) Non-index linked debts at period-end – Prepayable in full Comparison with 31. December 2022 in p
Slide 22: Market financing
Market financing REGULAR ISSUER IN THE MARKET ▪ Total refinancing need next year just short of 4 billion ISK ▪ Of this figure about 2.7 billion ISK relate to development financing due in the fall of 2024 ▪ The Company has good access to bank financing ▪ Following the issue of a base prospectus for 3
Slide 23: Agenda
Agenda SIX-MONTH STATEMENT 2023 - PRESENTATION FOR STAKEHOLDERS 1. Kaldalón today 2. Operation over the period 3. Financial statements 4. Prospects and market listing PRESENTATION FOR SHAREHOLDERS - KALDALÓN HF. 23
Slide 24: Company growth according to plan
Company growth according to plan COMPARISON WITH PREVIOUSLY PRESENTED ESTIMATES OF THE COMPANY Scenario from previous presentations Value of investment assets based on fixed growth ▪ Early in the transformation process the Company 55 ISK billions announced its targets for the growth of the asset por
Slide 25: Income growth
Income growth GROWTH BASED ON CURRENT PORTFOLIO AND ANNOUNCED TRANSACTIONS ▪ Management estimates assume that the Company’s portfolio of investment Lease income next 12 months (million ISK)* assets will be in full operation in the second quarter of 2024. Leases of 4.181 4.265 4.265 4.265 3.845 3.466
Slide 26: Market Comparison
Market Comparison SCENARIO OF A FULL OPERATING PERIOD FOR KALDALÓN BASED ON MARKET CONDITIONS Simple business model Growth opportunities Strong balance sheet A large part of operating and Revenue (m. ISK) administrative expenses are directly related to the cost of being a listed Bn. company, i.e. ma
Slide 27: Market Comparison
Market Comparison SCENARIO OF A FULL OPERATING PERIOD FOR KALDALÓN BASED ON MARKET CONDITIONS Sensitivity of property portfolio (Kaldalón) WACC Value of investment properties by category 6,0% 6,1% 6,2% 6,3% 6,4% 6,5% Unlisted Companies* 31.12 30.6 Investment assets (billion) [Equity] Return on inves
Slide 28: Real estate market for commercial properties
Real estate market for commercial properties NEW DEVELOPMENT OF COMMERCIAL PREMISES – COST AND VALUATION AT FAIR VALUE Volume of commercial premises has 12-month running average increase of building cost index increased significantly less on an annual 12% basis in the last decade (1.3%) than in the
Slide 29: Listing on Nasdaq Iceland main market
Listing on Nasdaq Iceland main market PREPARATIONS FOR LISTING BEGUN Targeted listing 50 billion 3,500 m The Company has been listed in the First North growth market since 2019. ISK Since the start of the Company’s transformation process work has been in Investment assets Revenue progress on prepari
Slide 30: Listing on Nasdaq Iceland main market
Listing on Nasdaq Iceland main market STATUS OF MEASURRABLE TARGETS OF THE COMPANY Targeted Investment assets Revenue 98% 99% listing 50 OPERATING HISTORY 50 50 25 75 100% 25 75 25 75 H1 / 2023 0 100 Objective: An interim financial statement with 0 100 0 100 pre operation of the property portfolio h
Slide 31: In conclusion
In conclusion ONWARDS Best performance within reporting period in the face of a challenging economy. 1 Income and asset growth in line with expectations and management estimates assume achievement of the Company’s targets in the third quarter. The Company published a base prospectus for a 30 billion
Slide 32: Disclaimer
Disclaimer “All information in this presentation is to the best knowledge of the management of Kaldalón at the time of the presentation. It should be noted that the Company’s operating environment is impacted by a number of factors that cannot be foreseen. Results and forecasts can change and the Co
Slide 33: Kaldalón hf.
Kaldalón hf. | Ingólfsstræti 3 | 101 Reykjavík | Tel.: 419 1414 | kaldalon@kaldalon.is | www.kaldalon.is