Catena Ab · OMXSTO:CATE
Catena Ab — Q3 2021 Earnings Presentation
37 slides from Catena Ab's earnings presentation, 2021
Slide 1: The leading property company in logistics
The leading property company in logistics.
Slide 2: Q3 2021
Q3 2021 Jörgen Eriksson CEO, Sofie Bennsten CFO 2
Slide 3: Highlights
Highlights Strong set of results on back of long-term structural trends • YTD Rental income increased by 10 percent to SEK 1 027.3 million YoY. Total operations • YTD Profit from property management of SEK 610.9 million, up 13 percent YoY. • EPRA NRV per share of 292.75 up 31 percent YoY. • Earnings
Slide 4: 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 direct impact on Catena demonstrating the resiliance in our business coming from our strong customer base. The set-up pr
Slide 5: Performance
Performance CATENA
Slide 6: A history of profitable growth
A history of profitable growth Profit from property Earnings per share Dividend per share management per share 20 50 9 16 40 8 7 12 30 6 5 8 20 4 3 4 10 2 1 0 0 0 2016 2017 2018 2019 Q3 2020 Q3 2016 2017 2018 2019 Q3 2020 Q3 2016 2017 2018 2019 2020 Q3 2020 2021 2020 2021 2021 6
Slide 7: Rental growth
Rental growth • Project development still strongest contributer and more is underway • LfL implies a solid occupancy and stable indexation Msek 1200,0 51 9 1 027 938 42 Q3 2021 (YTD) 1000,0 8 +10 % Like-for-like 1.0 % 5 800,0 Project developments 5.4 % 600,0 Acquisitions 4.5 % Divestments -0,5 % 400
Slide 8: Income statement – Period (YTD)
Income statement – Period (YTD) MSEK 2021 Jan-Sep 2020 Jan-Sep Y-o-Y change Rental income 1,027.3 937.5 10% SEK/sqm 660 660 0% Property expenses -206 -184.4 12% SEK/sqm -132 -131 1% NOI 821.3 753.1 9% NOI surplus ratio 79.9% 80.4% 0% Central admin -26.6 -24.0 11% Other -1.7 -2.5 -32% Financial net -
Slide 9: Generating strong cash flow
Generating strong cash flow PFPM Msek 15 %, Msek ratio, 1 400 100% 1 400 Q3 YoY 100% 60 % 1 200 1 200 80% 80% 1 000 1 000 800 60% 800 60% 600 40% 600 39% 40% 400 400 30% 20% 22% 20% 200 200 13% 15% 13% 10% 0 0% 0 0% 2016 2017 2018 2019 Q3 2020 Q3 2016 2017 2018 2019 Q3 2020 Q3 2020 2021 2020 2021 Re
Slide 10: Operational review
Operational review CATENA
Slide 11: Portfolio characteristics 1 (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 18 297.1 2,934.0 210.3 95 199.5 6.8 82 Helsingborg 25 460.8 4,243.4 286.0 97 277.5 6.
Slide 12: Portfolio characteristics 2 (2)
Portfolio characteristics 2 (2) By value Tenant concentration by Asset size breakdown Letteble space types, by Contractual income area 13% 13% 37% 47% 41% 19% 57% 43% 47% 41% 7% 20% 16% Gothenburg 10 biggest tenants < 10k sqm Terminals Helsingborg Rest 10k - 20k sqm Distribution Jönköping > 20k sqm
Slide 13: 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 13
Slide 14: Rental market
(Numbers indicate rental value per sqm) Rental market MSEK Region Stockholm 1 600 900 • Prime rent – terminal 755 kr/sqm 1 400 900 – 1,700 SEK/Sqm Stockholm 1 200 800 992 kr/sqm Örebro 1 000 800 700 • Prime rent – 578 kr/sqm 600 distribution 550 – 400 600 1,000 SEK/Sqm Region Gothenburg 200 708 kr/s
Slide 15: Letting operations
Letting operations Leasing by Maturity profile – WALE development Letting ratio contractual value contractual annual rent development SEKm SEKm Y 5.3 100% 700 43% 99% 250 8 600 98% 200 7 97% 150 500 6 96% 96% 96% 96% 100 400 5 95% 95% 95% 50 4 300 94% 0 13% 12% 12% 11% 3 93% 93% -50 200 9% 2 92% -10
Slide 16: Balance sheet and debt management
Balance sheet and debt management 16
Slide 17: Valuation
Valuation EPRA NRV per share Return on equity, % 350 25 300 20 250 200 15 150 10 100 5 50 0 0 2016 2017 2018 2019 2020 Q3 2021 2016 2017 2018 2019 Q3 2020 2020 Q3 2021 Return on equity Average 17
Slide 18: Statement of financial position
Statement of financial position SEK M 2021 Q3 2020 Q3 Total assets Investment properties 21,972.6 17,779.5 Goodwill 503.0 503.0 Other assets 996.7 865.8 Opening cash and cash equivalents 583.5 571.1 Total assets 24,055.8 19,719.1 Total shareholders’ equity and liabilities Equity 10,174.0 EPRA NRV -
Slide 19: Property value and yield
Property value and yield EPRA NIY Msek 5.2 % 25 000 9% EPRA 22 500 8% 20 000 In 2017 Catena´s share was 17 500 7% included in the international 6% index EPRA 15 000 5% 12 500 4% 10 000 3% 7 500 5 000 2% 2 500 1% 0 0% 2016 2017 2018 2019 2020 Q3 2021 Assets IFRS property value Gross inital yield EPRA
Slide 20: Debt and Capital Structure
Debt and Capital Structure LTV & Cost of debt Capital structure 100% 4,0% 30 000 65% 3,5% 25 000 80% 55% 3,0% 20 000 60% 2,5% 45% 2,0% 15 000 40% 1,5% 35% 10 000 1,0% 20% 25% 5 000 0,5% 0% 0,0% 0 15% 2016 2017 2018 2019 2020 Q3 2021 2016 2017 2018 2019 2020 Q3 2021 Net LTV Avg. cost of debt Interest
Slide 21: Debt profile
Debt profile Debt maturity profile Financing split Msek Debt maturity 5 000 3.2 yr 4 500 4 000 Interest Total 3 500 SEK 10.4bn 3 000 maturity 2 500 3.0 yr 2 000 1 500 Hedge 1 000 ratio Bankloans 500 66 % Secured bonds, SFF 0 Commercial papers 0-1 år 1-2 år 2-3 år 3-4 år 4-5 år 5- år Green Dansish mo
Slide 22: Capital deployment
Capital deployment CATENA
Slide 23: Transactions
Capital deployment YTD 1,437 Acquisitions (MSEK) Transactions 0 Divestments (MSEK) Investment target • Set to invest minimum 600 Msek/year in Capex Development capex development projects. 644 (MSEK) 23
Slide 24: 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 25: Development projects, in progress
(Boxes represents a selection of ongoing projects) Development projects, in progress Storheden 2:1, Luleå Kyl och frysexpressen Investment: 75 MSEK Sqm: 4,500 Book value, MSEK 560 Finalized: Q4 2021 Morgongåva 15:33, Heby Babyland Investment: 300 MSEK Sqm: 38,000 Finalized: Q1 2022 Bungkagården Mell
Slide 26: 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 approved Landvetter Härryda Sqm land: 210’ Pending zoning plan Stockholm South Nykvarn/Södertälje
Slide 27: Sustainability
Sustainability CATENA
Slide 28: New, updated sustainability targets in connection with the business plan 2022
New, updated sustainability targets in connection with the business plan 2022 • Net-zero greenhouse gas emissions by 2030 • The entire portfolio must be net-positive in terms of biodiversity by 2030 • 100 percent of the Group’s lettable area must be environmentally certified by 2030 • Certified as a
Slide 29: Sustainability within Catena
ESG ENVIRONMENTAL Sustainability within Catena Environmental certification and photovoltaic cells Energy efficiency and CO2e • Continued strive for examining ways to minimize consumed energy and CO2e emissions. Miljöbyggnad Silver/ iDrift Silver Energy consumption per sqm Certified Ongoing Kwh/sqm Q
Slide 30: Market insights and ongoing projects
Market insights and ongoing 30
Slide 31: E-commerce continues to grow strongly
”Despite tough comparative figures, e-commerce continues to grow strongly, up to 16 percent, during Q2 2021” www.postnord.se/ebarometern ” Even though the entire industry witnessed rapid growth of between 20-30 percent due to covid-19, only a small part of Instabox growth was pandemic related” Alexi
Slide 32: Tostarp
Logistics Position Tostarp Project: Additional construction, Plantehuset 3 Helsingborg Investment: 124 MSEK Tenant: LOI with Nowaste Logistics Total sqm: 15,000 32
Slide 33: Ättekulla, Helsingborg
Ättekulla, Helsingborg Project: Additional construction, Bunkagården Mellersta 1 Helsingborg Investment: 132 MSEK Tenant: PostNord TPL Total sqm: 16,748 33
Slide 34: Acquisition
Acquisition Glasblåsaren 14 Investment: 206 MSEK Tenant: Scan Sweden Total sqm: 9,640 Lease duration: 12Y 34
Slide 35: Välluv, Helsingborg
Välluv, Helsingborg Project: Catena won a land allocation competition in Helsingborg in alliance with Nowaste Logistics Possible Tenant: Nowaste Logistics Land sqm: 160,000 35
Slide 36: Q&A
Q&A Jörgen Eriksson CEO, Sofie Bennsten CFO catenafastigheter.com 36
Slide 37: The leading property company in logistics
The leading property company in logistics.