Catena Ab · OMXSTO:CATE
Catena Ab — Q1 2021 Earnings Presentation
38 slides from Catena Ab's earnings presentation, 2021
Slide 1: The leading property company in logistics
The leading property company in logistics.
Slide 2: Q1 2021
Q1 2021 Jörgen Eriksson CEO, Sofie Bennsten CFO 2
Slide 3: Contents
Contents 1. Highlights 5. Capital deployment 2. Performance 6. Sustainability 3. Operational review 7. Market insights and ongoing 4. Balance sheet and debt 8. Q&A management 3
Slide 4: Highlights
Highlights Robust demand driving sustainable growth • Rental income increased by 5 percent to 329,4 YoY. Total operations • YTD Profit from property management1 of SEK 187.8 million, up 6 percent YoY. • EPRA NRV per share of 276 up 33 percent YoY. • Earnings per share of 19.95 SEK up from 3.81 per s
Slide 5: Covid-19
Covid-19 As economies are starting to reopen coinciding with ongoing vaccination programs confidence among consumers is increasing. The impact from the Coronavirus has had limited effect on Catena in the first quarter of 2021. The set-up program prepared for in the first quarter of 2020 to cope with
Slide 6: Performance
Performance CATENA
Slide 7: A history of profitable growth
A history of profitable growth Profit from property Earnings per share Dividend per share management per share 20 50 10 16 40 8 12 30 6 8 20 4 4 10 2 0 0 0 2016 2017 2018 2019 Q1 2020 Q1 2016 2017 2018 2019 Q1 2020 Q1 2015 2016 2017 2018 2019 2020 2020 2021 2020 2021 7
Slide 8: Rental growth
Rental growth Strong contribution from development this quarter indicating execution and quality in our development operations. Msek 500,0 +5 % 450,0 Q1 2021 400,0 315 329 6 17 2 Like-for-like 0.6 % 350,0 300,0 1 Project developments 5.5 % 10 250,0 Acquisitions 2.0 % 200,0 Divestments -0,2 % 150,0 1
Slide 9: Income statement – Period (YTD)
Income statement – Period (YTD) 2021 Jan-Mar 2020 Jan-Mar Y-o-Y change Rental income 329,4 315,1 5% Kr/Sqm 666 660 1% Property expenses -70,7 -66 7% Kr/Sqm -143 -143 0% NOI 258,7 249,1 4% NOI surplus ratio 78,5% 79,1% -1% Central admin -8,3 -8,7 -5% Other -0,2 -3,5 -94% Financial net -62,4 -59,5 5%
Slide 10: Strong and durable cashflow
Strong and durable cashflow Profit ratio, 57 % Msek 1 400 56 % 100% Objectives: 90% 1 200 80% • 50 percent target on PFPM ratio 1 000 70% • Yearly target of 10 percent growth in PFPM 800 60% 50% • Distribute 50 percent of profit from property 600 40% management less standard tax 400 30% 20% 200 10%
Slide 11: Operational review
Operational review CATENA
Slide 12: Portfolio characteristics (2)
Portfolio characteristics 1 (2) REGIONS # of Lettable area Fair Value Rental value Economic Contractual Gross Surplus properties tsqm Msek Msek letting ratio annual rent, initial ratio % % Msek1 yield %2 Gothenburg 17 289.6 2,780.1 203.0 85 171.6 6.2 81 Helsingborg 23 450.0 4,014.4 273.2 97 265.3 6.
Slide 13: Portfolio characteristics
Portfolio characteristics By value Tenant concentration by Asset size breakdown Letteble space types, by Contractual income area 14% 13% 39% 45% 40% 55% 19% 45% 48% 7% 39% 20% 16% Gothenburg 10 biggest tenants < 10k sqm Terminals Helsingborg Rest 10k - 20k sqm Distribution Jönköping > 20k sqm Logist
Slide 14: Well reputed and diversified customer base
Well reputed and diversified customer base Logistics/Transport Fashion/Leisure Health/Medical Home/Construction Food/Beverage /Recycling /Electronics /Packaging 14
Slide 15: Rental market
(Numbers indicate rental value per sqm) Rental market Region Stockholm 742 kr/sqm Msek Stockholm 982 kr/sqm 1 600 1 400 900 • Prime rent – terminal Örebro 1 200 800 900 – 1,700 SEK/M2 578 kr/sqm 1 000 800 700 • Prime rent – Region Gothenburg 600 701 kr/sqm 400 600 distribution 550 – 200 1,000 SEK/M2
Slide 16: Letting operations
Letting operations Msek Msek Net rental by contractual value Maturity - Contractual 60 600,0 annual rent 40 36,1% 500,0 20 400,0 0 300,0 -20 15,4% 13,2% 12,7% 200,0 10,4% 10,4% -40 100,0 1,7% 2019 2019 2019 2019 2020 2020 2020 2020 2021 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 – Moved in Moved out Net 2021 2022 2
Slide 17: Balance sheet and debt management
Balance sheet and debt management 17
Slide 18: Valuation
Valuation EPRA NRV per share Return on equity, % 300 25 250 20 200 15 150 10 100 50 5 0 0 2016 2017 2018 2019 Q1 2020 Q1 2016 2017 2018 2019 Q1 2020 Q1 2020 2021 2020 2021 Return on equity Average 18
Slide 19: Statement of financial position
Statement of financial position SEK M 2021 Q1 2020 Q1 Total assets Investment properties 20,602.0 16,867.8 Goodwill 503.0 503.0 Other assets 2,038.3 895.3 Opening cash and cash equivalents 290.0 169.0 Total assets 23,433.3 18,435.1 Total shareholders’ equity and liabilities Equity 9,633.6 EPRA NRV -
Slide 20: Property value and yield
Property value and yield EPRA NIY 5.3 % Msek 25 000 9% EPRA 22 500 8% 20 000 7% In 2017 Catena´s share 17 500 6% was included in the 15 000 5% international index EPRA 12 500 4% 10 000 7 500 3% 5 000 2% 2 500 1% 0 0% 2016 2017 2018 2019 Q1 2020 2020 Q1 2021 Assets IFRS property value Gross inital yi
Slide 21: Debt and Capital Structure
Debt and Capital Structure LTV & Cost of debt Capital structure 30 000 65% 100% 4,0% 25 000 55% 3,5% 80% 20 000 3,0% 45% 60% 2,5% 15 000 2,0% 35% 40% 1,5% 10 000 1,0% 25% 20% 5 000 0,5% 0% 0,0% 0 15% 2015 2016 2017 2018 2019 Q1 2020 Q1 2016 2017 2018 2019 2020 Q1 2021 2020 2021 Interestbearing debt
Slide 22: Funding structure
Funding structure Year Debt maturity loans Interest maturity incl. derivatives Funding source 4% msek Share% Interest rate Msek Share% Interest rate including margin% including margin% 12% 0-1 y 2,670.8 25 1.4 4,884.9 46 1.7 1-2 y 3,461.6 13 1.1 908.0 9 3.0 15% 2-3 y 3,750.4 37 1.4 500.0 5 3.1 3-4 y
Slide 23: Follow-up on Financial policy and targets
Follow-up on Financial policy and targets1 Equtiy ratio Interest cover LTV (net) Target >40% Target >2 Target <50% 50% 5,0 100% 40% 4,0 80% 30% 3,0 60% 20% 2,0 40% 10% 1,0 20% 0% 0,0 0% 2016 2017 2018 2019 Q1 2020 Q1 2016 2017 2018 2019 Q1 2020 Q1 2016 2017 2018 2019 Q1 2020 Q1 2020 2021 2020 2021 2
Slide 24: Capital deployment
Capital deployment CATENA
Slide 25: Capital deployment YTD
Capital deployment YTD 1,124 Acquisitions (MSEK) Transactions 0 Divestments (MSEK) Investment target • Set to invest minimum 600 Msek/year in Capex Development capex 160 (MSEK) development projects. 25
Slide 26: Transactions
Transactions ACQUISITIONS Property Transfer Letteble area Region Municipality Property Rental income/y (sqm) value (MSEK) MSEK Åre 92 Q1 2021 38,293 Gothenburg Borås 272 17.4 Morgongåva 15:33 Q1 2021 Land Stockholm Heby 32 0 Hammerholmen 47-49 Q1 2021 16,489 Malmö Hvidovre (DK) 218 12 Kokbjerg 15 Q1
Slide 27: Development projects, in progress
(Boxes represents a selection of ongoing projects) Development projects, in progress Storheden 2:1, Luleå Kyl och frysexpressen Total investment: 75 MSEK Finalized: Q4 2021 Book value, MSEK 700 Morgongåva 15:33, Heby Babyland Total investment: 300 MSEK Finalized: Q1 2022 Remaining 600 Broby 57:1 & 4
Slide 28: Potential, future development
(Presented landlots represents a selection of our outstanding landbank) Potential, future development Örebro (JV, 34%) Törsjö Magneten 6 Sqm land: 920’ Umeå Pending zoning plan Sqm land: 42’ Zoning plan activated Landvetter Härryda Sqm land: 210’ Pending zoning plan Stockholm South Nykvarn/Södertälj
Slide 29: Sustainability
Sustainability CATENA
Slide 30: Sustainability trends in Catena
ESG ENVIRONMENTAL Sustainability trends in Catena TCFD Science Based Targets • Continuous implementation of TCFD’s • Catena´s new goals for GHG emissions have been approved by the Science Based Target initiative recommendation during 2020. The aim is to (SBTi). develop strategies and goals to increa
Slide 31: Sustainability trends in Catena
ESG ENVIRONMENTAL Sustainability trends in Catena Environmental certification and photovoltaic Energy efficiency and Co2e cells • Continued strive for examining ways to minimize ▪ With 13 facilities installed and 7 underway they will consumed energy and Co2 emissions. correspond to approximately 5%
Slide 32: Market insights and ongoing
Market insights and ongoing 32
Slide 33: Online shopping growth quotes
”During 2020 online shopping grew by 40% compared to 2019 and groceries reached a staggering growth of 95%.” www.postnord.se ”We are seeing excellent demand from FMCG and e-commerce customers for our sustainable packaging products and solutions and we continue to invest for growth in these areas. ”
Slide 34: Denmark Acquisition
Denmark Acquisition Total investment: 815 MSEK Type: Terminal/Distribution/Warehouse NOI: 45 MSEK Largest Tenants: NTG Nordic Transport Group A/S / H.Daugard Initial yield: 5.5% A/S Total sqm: 93,270 Building right (Sqm): 40,000 34
Slide 35: Morgongåva Development
Morgongåva Development Total investment: 300 MSEK Tenant: Babyland NOI: 17.8 MSEK Lease maturity: 12 year Lettable area, sqm: 38,000 Type: E-commerce distribution facility Finalized: Q1 2022 Sustainability: Certified, Miljöbyggnad Silver Photovoltaic cells on roof 35
Slide 36: Directed share issue
Directed share issue March 31 2020 Directed share issue through accelerated book building procedure Date: March 31 2020 Number of shares: 3,000,000 Subscription price: 360 Market price at the time: 385 Proceeds: 1,080 MSEK 36
Slide 37: Q&A
Q&A Jörgen Eriksson CEO, Sofie Bennsten CFO catenafastigheter.com 37
Slide 38: The leading property company in logistics
The leading property company in logistics.