Stendoerren Fastigheter Ab Class B · OMXSTO:STEF_B
Stendoerren Fastigheter Ab Class B — Stendörren Fastigheter — Q2 2023 Earnings Presentation
23 slides from Stendoerren Fastigheter Ab Class B's earnings presentation, 2023
Slide 1: Second Quarter 2023
SECOND QUARTER 2023 STENDÖRREN
Slide 2: Introduction: Business Idea, Market Opportunity and Financial Objectives
INTRODUCTION BUSINESS IDEA, MARKET OPPORTUNITY AND FINANCIAL OBJECTIVES BUSINESS MARKET FINANCIAL IDEA OPPORTUNITY OBJECTIVES Stendörren creates profitable growth The properties are strategically located in Return on equity of at least 12% in net asset value by managing, growth areas (population and
Slide 3: Operational Highlights
OPERATIONAL HIGHLIGHTS Excluding bankruptcy of second largest tenant Exploria NET LETTING (MSEK) ✓ STRONG RENTAL INCOME AND NOI GROWTH Leasing new construction 16 15 17 • Full effect from CPI-related rent increase in lease agreements with 14 14 effect from and including Q1 2023 8 8 7 • 25% y-o-y NOI
Slide 4: Financial Highlights
FINANCIAL HIGHLIGHTS ROE (%) ✓ REVALUATIONS EFFECTS FINANCIAL 26 26 KEY FIGURES NEGATIVELY 20 22 16 18 • LTM SEK -508m on property portfolio 15 14 9 9 10 8 7 7 9 ✓ INTEREST-RATE RESILIANCE 12% 5 1 -3 • Approx 80% of interest-bearing debt hedged with a “Stibor” of 1.50% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Slide 5: Snapshot of Stendörren
SNAPSHOT OF STENDÖRREN PROPERTY VALUE1 RENTAL VALUE2 NOI YIELD3 LTV4 SEK SEK 6.0% 49% 12.5 bn 860 m LEASE DURATION5 NAV6 LETTABLE AREA1 BUILDING RIGHTS1 SEK SQ.M. SQ.M. 3.8 years 4,902 million 804,000 658,000 1) Property portfolio as per June 30, 2023 2) Estimated earnings capacity as of July 1, 202
Slide 6: Stendörren History in Short
STENDÖRREN HISTORY IN SHORT PROPERTY VALUE Q2 2023 PROPERTY VALUE 2022 12.5 BN PROPERTY VALUE 2021 12.4 BN 151 PROPERTY VALUE 2020 11.7 PROPERTIES BN 148 PROPERTY VALUE 2019 9.5 PROPERTIES BN 135 PROPERTY 8.9 VALUE 2018 BN 123 PROPERTIES 2023 PROPERTY 8.4 VALUE 2017 BN 122 PROPERTIES 2022 PROPERTY 6
Slide 7: Reasons to Invest in Stendörren
4 REASONS TO INVEST IN STENDÖRREN 1. STABLE CASH FLOW 2. SUSTAINABLE GROWTH • High yielding logistics, warehouse and light • Properties strategically located in growth areas such as Greater industrial properties with long leases Stockholm and the Mälardalen region • Diversified tenant base of both w
Slide 8: 1. Stable Cash Flow
1. STABLE CASH FLOW DIVERSIFICATION WITH FOCUS ON GREATER STOCKHOLM PROPERTY PORTFOLIO OVERVIEW • Stendörren has a property portfolio of SEK 12,513m, with a property yield of 6.0%1 as per 30 June 2023 • Rental value2 of SEK 860m with an economic occupancy rate of 95% as per 30 June 2023 • Lease agre
Slide 9: 1. Stable Cash Flow – Continued: Diversified Tenant Base
1. STABLE CASH FLOW – CONTINUED DIVERSIFIED TENANT BASE LARGEST TENANTS AS PER Q2 2023 LEASE MATURITY BY RENTAL INCOME Rental Share of Rental area, Tenant income, total rental th. sq.m. 435 SEKm income Coop Logistics AB 68 130 9% 248 Åtta.45 Tryckeri AB 13 11 2% 352 Mountain Top 12 10 2% Unilever Eu
Slide 10: 2. Sustainable Growth: Why Focus on the Stockholm Region?
2. SUSTAINABLE GROWTH WHY FOCUS ON THE STOCKHOLM REGION? POPULATION STOCKHOLM REGION STOCKHOLM REGION 3 000 000 2022 – 2040 • The gross regional product in Stockholm per capita is ca 40% Forecasted CAGR of 0.77% Forecasted population higher than the national average growth of 19,900 2010 – 2021 2 75
Slide 11: 2. Sustainable Growth – Continued: Strong Growth Prospects
2. SUSTAINABLE GROWTH – CONTINUED STRONG GROWTH PROSPECTS FUTURE • Expansion in greater Stockholm and Mälardalen • Build critical mass in new markets • New markets continuously evaluated • Investments in the existing portfolio of building rights and developments • Focus on off market acquisitions of
Slide 12: 3. Value Growth in Projects
3. VALUE GROWTH IN PROJECTS PROJECT PORTFOLIO WITH LARGE POTENTIAL Envisaged main Estimated building Estimated Possible Municipality Status Zoning use right sq. m.1 Construction Start 2 • Fully developed up to an Upplands-Bro Logistics 400 000 Within current zoning 2023-2024 additional 658,000 sqm c
Slide 13: Ongoing and Completed Projects H1 2023
3. VALUE GROWTH IN PROJECTS – CONTINUED ONGOING AND COMPLETED PROJECTS H1 2023 Estimated Estimated Size Property Description investment3 Current Phase completion1 sq. m.2 SEKm • Development projects Hjulsmeden 1 New light industrial Q3 2023 2 700 48 Construction started within logistics, light Libro
Slide 14: Residential Conversions
3. VALUE GROWTH IN PROJECTS – CONTINUED RESIDENTIAL CONVERSIONS TEGELBRUKET – SKRUBBA - TRAVERSEN • Identifying underutilized assets in urban locations with potential for residential development • The assets have been acquired as cash flow generating properties • As an example, the asset Tegelbruket
Slide 15: Sustainability - Achievements
SUSTAINABILITY - ACHIEVEMENTS CLIMATE IMPACT KG CO2/SQ.M ENERGY INTENSITY KWH/SQ.M. DISTRIBUTION OF ENERGY SOURCES 4,50 140 43% 33% Renewables Non-renewables REDUCED CLIMATE IMPROVED ENERGY 4,00 IMPACT BETWEEN 2018- EFFICIENCY PER SQ.M 2022 (KgCO2,e/sq.m) 130 BETWEEN 2018-2022 3,50 2% 120 3,00 4% 4%
Slide 16: Sustainability Strategy
SUSTAINABILITY STRATEGY -19.3% Reduction of energy intensity (kvh/kvm) as of 30 June, 2023, compared with base year 2020 46.8% Environmentally certified area out of total area, as of 30June, 2023 16 Investor Presentation
Slide 17: Sustainability Initiatives
SUSTAINABILITY INITIATIVES EXAMPLES IN NEW DEVELOPMENTS ✓ BREEAM EXCELLENT OR VERY GOOD • High sustainability focus during entire build evidenced in high rating ✓ ENERGY CONSUMPTION WELL BELOW REQUIRED LEVEL • State of the art development Viby 19:66 has exceptionally low energy consumption, 82% belo
Slide 18: 4. Finance: Highlights from Q2 Report
4. FINANCE HIGHLIGHTS FROM Q2 REPORT NET LETTING (MSEK) ECONOMIC OCCUPANCY (%) Excluding bankruptcy of 17 second largest tenant Exploria 16 15 14 14 95 14 94 8 8 92 7 91 91 5 90 89 89 89 1 1 1 88 88 88 88 88 87 87 87 87 -2 -2 -4 -6 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 -11 2019 2020
Slide 19: 4. Finance – Continued: Financial Targets
4. FINANCE – CONTINUED FINANCIAL TARGETS ROE (%) NAV GROWTH (%) 37 35 26 26 29 22 25 20 20 18 20 18 22 23 23 22 16 16 15 14 17 17 18 15 9 9 10 9 13 12 8 7 7 15% 11 11 10 9 12% 5 9 1 -3 1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 -1 -5 2018 2019 2020 2021 2022 2023 Q1 Q2 Q3 Q4
Slide 20: 4. Finance – Continued: Debt Funding
4. FINANCE – CONTINUED DEBT FUNDING DEBT FUNDING OVERVIEW LOAN MATURITY INTEREST FIXING SEKm SEKm 7% 2 500 3 000 2 700 2 028 18% 2 000 2 500 1 712 1 923 1 493 2 000 1 500 977 1 500 1 000 1 050 900 1 000 74% 500 330 500 32 0 0 0 0 Bank debt Sr Unsecured bond Hybrid bond • Total interest-bearing debt
Slide 21: Key Equity Ratios and Ownership Overview
4. FINANCE – CONTINUED KEY EQUITY RATIOS AND OWNERSHIP OVERVIEW SEKm SEK/share % OF 7 000 350 SHAREHOLDER % OF VOTES CAPITAL STENDÖRREN REAL ESTATE AB 40,6 58,0 6 000 300 ALTIRA AB 9,2 13,9 LÄNSFÖRSÄKRINGAR FASTIGHETSFOND 10,1 5,6 SEB INVESTMENT MANAGEMENT 9,0 5,0 5 000 250 VERDIPAPIRFONDET ODIN EIE
Slide 22: Assessed Earnings Capacity as of July 2023
4. FINANCE – CONTINUED ASSESSED EARNINGS CAPACITY AS OF 1 JULY 2023 • According to the company’s assessment, the total rental 860 181 income (after deductions for vacancies and discounts) on a rolling 12-month basis amounts to approximately SEK 860 679 million. • The company also estimates that curr
Slide 23: Thank You!
STENDORREN Kokaler Som rie vskillnad. THANK YOU!
Stendörren Fastigheter — Q2 2023 Earnings Presentation on 6ix