Wihlborgs Fastigheter Ab · OMXSTO:WIHL
Wihlborgs Fastigheter Ab — Q2 2024 Earnings Presentation
51 slides from Wihlborgs Fastigheter Ab's earnings presentation, Jul 8, 2024
Slide 1: Quarterly report January - June 2024
Quarterly report January - June 2024 Ulrika Hallengren, CEO and Arvid Liepe, CFO 8 July 2024
Slide 2: Summary Q2 2024
• Summary Q2 2024 • Record operating surplus of SEK 764 m in the quarter • Net letting positive • Demand for good quality in good locations • Higher financing costs but ICR at 2.5 times • Project investments gives good potential for growth 2
Slide 3: Results Jan-June 2024
Results Jan- June 2024 • Rental income increased by 7% to SEK 2,072 million (1,935) • Operating surplus increased by 7% to SEK 1,482 million (1,389) • Income from property management amounted to SEK 884 million (948) • Result for the period amounted to SEK 698 million (625), corresponding to earning
Slide 4: Rental income development
Rental income development Rental income Jan-Jun 2023, SEKm 1,935 Index 88 Early termination fees 20 Acquisitions 6 Property tax, Denmark 5 Currency effect 3 Additional charges -4 Canteens -8 Completed projects, new leases and renegotiations etc. 27 Rental income Jan-Jun 2024 2,072 4
Slide 5: Net letting
Net letting Q2 Q2 Jan-Jun Jan-Jun SEKm 2024 2023 2024 2023 New leases 94 77 271 154 Terminations 73 63 221 134 Net letting 21 14 50 20 5
Slide 6: New leases Q2 2024 – a selection
New leases Q2 2024– a selection vv
Slide 7: Net letting quarterly
Net letting quarterly 150 100 50 0 -50 -100 -150 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 New leases Terminations Net 7
Slide 8: Solid customers
Solid customers 20% City of Helsingborg City of Malmö Revenues from Danish Building and Property top ten tenants Agency Lund University 23% Malmö University Revenues from Novo Nordisk public tenants SAAB Skåne Regional Council Swedish Social Insurance Agency Trygg Hansa Insurance 8
Slide 9: Rental growth
Rental growth Rental Rubrikgrowthupp entire property stock till 2 rader like-for-like* 01-07-2024 01-07-2023 01-07-2024 01-07-2023 SEK m SEK m Percent SEK m SEK m Percent Rental value 4,490 4,250 +5.6 Rental value 3,500 3,302 +6.0 Rental income 4,102 3,905 +5.0 Rental income 3,227 3,066 +5.3 *Exclud
Slide 10: Changes in market value properties
Changes in market value properties SEK m Carrying amount 1 January 2024 55,872 Acquisitions 201 Investments 1,014 Properties sold -4 Changes in value -31 Currency translations 107 Carrying amount 30 June 2024 57,159 10
Slide 11: Increased value in the portfolio
Increased value in the portfolio 60 000 50 000 40 000 30 000 SEK m 20 000 10 000 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Q2 11
Slide 12: Portfolio – the entire property stock
Portfolio – the entire property stock 1 July, 2024 Market value Op. Surplus* Occupancy Running Running yield SEK m SEK m rate, % yield, % fully let, % Total excl. 53,867 3,091 93 5.7 6.3 projects and land Total Wihlborgs 57,159 3,112 91 5.4 6.1 * Excluding property admin 12
Slide 13: Portfolio – Office properties
Portfolio – Office properties 1 July, 2024 Market value Op. Surplus* Occupancy rate, Running Running yield SEK m SEK m % yield, % fully let, % Malmö 19,261 1,050 96 5.5 5.8 Helsingborg 8,197 477 91 5.8 6.5 Lund 8,576 504 91 5.9 6.6 Copenhagen 10,461 569 92 5.4 6.1 Total 46,495 2,600 93 5.6 6.1 * Exc
Slide 14: Portfolio – Logistics/Production
Portfolio – Logistics/Production 1 July, 2024 Market value Op. Surplus* Occupancy Running Running yield SEK m SEK m rate, % yield, % fully let, % Malmö 2,143 142 94 6.6 7.1 Helsingborg 3,891 266 85 6.8 8.4 Lund 451 29 99 6.4 6.5 Copenhagen 887 54 98 6.1 6.3 Total 7,371 491 90 6.7 7.6 * Excluding pro
Slide 15: Portfolio running yield, excl. property admin
Portfolio running yield, excl. property admin. 6,5 6,3 6,3 6,2 6,1 5,9 5,8 5,8 5,7 5,7 5,7 Percent 5,5 5,4 5,4 5,4 5,3 5,3 5,1 5,1 5,1 4,9 4,7 4,5 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Q2 Excl. project and land 15
Slide 16: Sustainability results Q2
Sustainability results Q2 Target Environmental certifications (% of floor area, office, Sw) Target Evaluation of suppliers, (% approved) 90 2025: 100 2025: 80 90 90 100 70 80 60 70 60 50 50 40 40 30 30 20 20 10 10 0 0 CO2 emissions (kg/sqm, scope 1 & 2) 120 Energy use (kWh/sqm) 1,6 1,4 100 Target 1,
Slide 17: Sustainability highlights Q2
• Q2 Sustainability highlights Q2 • Bläckhornet 1 (Vista), Malmö, Miljöbyggnad 4.0 level Gold • Battery storage at Nya Vattentornet 4 (Cube), Lund • New requirements for procurement of solar cells • Research project on climate adaptation • Energy savings projects continues, “Janne- lösningen” is a f
Slide 18: Malmö Helsingborg Lund Copenhagen
Malmö Helsingborg Lund Copenhagen 40 % of property value 22 % of property value 16 % of property value 22 % of property value 634,000 m2 667,000 m2 279,000 m2 705,000 m2 104 properties 106 properties 34 properties 63 properties 22,777 SEK m property value 12,786 SEK m property value 9,267 SEK m prop
Slide 19: Efficient commuting brings people together
Efficient commuting brings people together Accessibility by public transport to regional centra in Skåne (minutes) Source: Region Skåne, Regional utveckling
Slide 20: Financials
Financials 20
Slide 21: Income statement
Income statement SEK m Q2 2024 Q2 2023 Rental income 1,032 964 +7% Operating surplus 764 722 +6% Income property management 460 491 -6% Change in value of properties 28 -59 Change in value of derivatives -29 35 Pre-tax profit 459 467 Profit for the period 350 370 21
Slide 22: Consolidated balance sheet
Consolidated balance sheet, SEK m 30-06-2024 30-06-2023 Investment properties 57,159 56,629 Right-of-use assets 134 143 Other fixed assets 444 424 Derivatives 335 638 Current receivables 349 332 Liquid assets 403 185 Total assets 58,824 58,351 Equity 22,128 23,086 Deferred tax liability 5,383 5,341
Slide 23: Key figures
Key figures 30-06-2024 30-06-2023 Equity/assets ratio, percent 37.6 39.6 Leverage properties, percent 51.8 50.3 Interest coverage ratio, multiple 2.5 3.2 Per share, SEK EPRA net disposal value 71.98 75.09 EPRA net reinstatement value 88.74 90.41 Earnings per share 2.27 2.03 EPRA EPS 2.58 2.88 23
Slide 24: EPRA NRV
EPRA NRV Average annual growth: 15 percent adjusted for dividend Per share 100 90 80 70 60 SEK 50 40 30 20 10 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Q2 24
Slide 25: Stable financial position
Stable financial position Financial targets Equity/Assets % 45,0 • Max. loan-to-value 60% 40,0 • Min. equity/assets 30% 35,0 • Min. interest coverage 2.0 multiple 30,0 25,0 Interest cover ratio, rolling 12 months 8,0 7,0 Loan-to-value % 6,0 65,0 5,0 60,0 4,0 55,0 3,0 50,0 2,0 1,0 45,0 0,0 40,0 jul-1
Slide 26: Strong earnings relative to borrowings
Strong earnings relative to borrowings Net debt/EBITDA 12,0 10,0 8,0 Multiple 6,0 4,0 2,0 0,0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Q2 26
Slide 27: Current financing, June 2024
Current financing, June 2024 Total debt: SEK 29.6 bn 10% 51% 39% Bank loans Danish mortgage loans Bonds 27
Slide 28: Structure of interest and loan maturities
Structure of interest and loan maturities Interest maturity Loan maturity Loan amount Average Credit agreement Utilised Matures year SEK m interest rate % SEK m SEK m 2024 14,485 5.05 1,794 894 2025 1,788 1.62 902 902 2026 2,102 3.12 11,043 10,187 2027 2,253 3.70 7,982 7,332 2028 2,653 3.75 616 616
Slide 29: Interest rate sensitivity
Interest rate sensitivity % 7,00 6,00 The underlying rate can increase by 1.5 percentage points from the level end June and the ICR would still be at our Average interest rate, % 5,00 target level of 2.0 times. 4,00 3,00 2,00 1,00 The underlying rate can increase by 5.0 percentage points 0,00 from t
Slide 30: Fixed interest period and loan maturity
Fixed interest period and loan maturity Fixed interest period, years Loan maturity, years 7 7 6 6 5 5 4 4 3 3 2 2 1 1 0 0 sep-19 mar-20 sep-20 mar-21 sep-21 mar-22 sep-22 mar-23 sep-23 mar-24 sep-19 mar-20 sep-20 mar-21 sep-21 mar-22 sep-22 mar-23 sep-23 mar-24 30
Slide 31: Available funds
Available funds Unutilized credit facilities plus liquid funds, SEK mn 4500 4000 3500 3000 2500 2000 1500 1000 500 0 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 31
Slide 32: Acquisition
Acquisition 32
Slide 33: Värdshuset 2
Värdshuset 2 Malmö Dockan/Hyllie Area, sqm 3,916 Underlying prop 180.5 value, m SEK 33
Slide 34: Investments in progress
Investments in progress 34
Slide 35: Projects investments
Projects investments June 2024 SEK m Investments 1,014 Projects in progress 4,691 Invested by period end -1,588 Remains to invest 3,103 35
Slide 36: Galoppen 1
Galoppen 1 Fosie, Malmö Completion Q3 2025 10,000 m2 SEK 264 m 36
Slide 37: Kranen 4
Kranen 4 Dockan, Malmö Completion Q3 2025 Malmö University, Police education 4,900 m2 SEK 106 m 37
Slide 38: Börshuset 1
Börshuset 1 Malmö, City Completion Q4, 2025 6 000 m2 SEK 289 m 38
Slide 39: Bläckhornet 1 - VISTA
Bläckhornet 1 - VISTA Hyllie, Malmö Completion Q4 2024 / Q4 2025 15,000 m2 mobility hub SEK 884 m 16,600 m2 office 39
Slide 40: Posthornet 1, phase 2
Posthornet 1, phase 2 Lund, City Completion Q1, 2026 10,100 m2 SEK 448 m 40
Slide 41: Christianhusvej 11
Christianhusvej 11 Copenhagen, Hörsholm Completion Q4, 2025 NGG 11 600 m2 SEK 390 m 41
Slide 42: Rausgård 21
Rausgård 21 Helsingborg Completion Q3, 2024 Nederman 25,000 m2 SEK 420 m 42
Slide 43: Snårskogen 5
Snårskogen 5 Helsingborg Completion Q3, 2024 Rollco 3,600 m2 SEK 78 m 43
Slide 44: Sunnanå 12:54
Sunnanå 12:54 Malmö Completion Q3, 2025 17,000 m2 SEK 302 m 44
Slide 45: Bilrutan 1
Bilrutan 1 Landskrona Completion Q4, 2024 Dachser 9,600 m2 SEK 159 m 45
Slide 46: Future projects
Future projects 46
Slide 47: Amphitrite
Amphitrite University of Malmö 47
Slide 48: Science Village, Spektra, Ideontorget, Zenit, Polisen 7
• Vetskapen 1 Science Village, Spektra Ideontorget, Zenit Polisen 7 Västerbro Lund Lund, Ideon Helsingborg Lund 4,700 m2 GFA 16,000 m2 GFA 6,000 m2 GFA 70,000 m2 GFA TBD TBD TBD TBD TBD TBD TBD TBD 48
Slide 49: Hamnen 16:xx-Smörkajen, Kranen 15
• Hamnen 16:xx- Smörkajen Hamnen 16:xx- Smörkajen Kranen 15 Dockan Naboland 3 Malmö, Nyhamnen Malmö, Dockan Malmö, Dockan Malmö, Dockan 13,000 m2 GFA TBD 13,000 m2 GFA 8,000 m2 GFA TBD TBD TBD TBD Miljöbyggnad Guld Miljöbyggnad Guld Miljöbyggnad Guld Miljöbyggnad Guld 49
Slide 50: Summary Q2 2024
• Summary Q2 2024 • Record operating surplus of SEK 764 m in the quarter • Net letting positive • Demand for good quality in good locations • Higher financing costs but ICR at 2.5 times • Project investments gives good potential for growth 50
Slide 51: UIAPAAR
UIAPAAR HAN aM
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