Catena Ab · OMXSTO:CATE
Catena Ab — FY2020 Earnings Presentation
36 slides from Catena Ab's earnings presentation, 2021
Slide 1: The leading property company in logistics
The leading property company in logistics.
Slide 2: FY 2020 – Jörgen Eriksson CEO, Sofie Bennsten CFO
FY 2020 Jörgen Eriksson CEO, Sofie Bennsten CFO 2
Slide 3: Contents
Contents 1. Highlights 2. Results and balance overview 3. Operational review 4. Debt and capital management 5. Capital deployment 5. Sustainability 6. Market insights and ongoing Q&A 3
Slide 4: Highlights
Highlights The resilience of our business led to record year revenue and earnings • YTD Profit from property management1 of SEK 718.6 million, up 15 percent YoY. Total operations • EPRA NRV per share of 245 up 21 percent YoY. • Letting ratio at 96.2 percent with WALE of close to 5 years. • SEK 49 mi
Slide 5: Covid-19
Covid-19 The impact from the Coronavirus has had limited effect on Catena so far. Still, the set-up program prepared for in the first quarter of 2020 to cope with the situation is still in progress and of critical importance. Summarizing 2020; • During 2020 rental value of 88 MSEK was agreed to chan
Slide 6: A history of growth
A history of growth Profit from property management EPRA NRV per share Return on equity per share 20 300 25 16 250 20 200 12 15 150 8 10 100 4 50 5 0 0 0 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 Return on equity Average 6
Slide 7: Results and balance overview
Results and balance overview Q4 2020, YTD 7
Slide 8: Income statement – Period (YTD)
Income statement – Period (YTD) 666 137 NOI 19.06 40.51 2020 Q4: SEK M kr/sqm kr/sqm ratio per share per share 79% 1166,8 38,1 2000 1750 1500 1263,9 +11% 1250 396,4 +15% 1000 750 260,1 35,2 2,7 1527,1 500 1003,8 247,3 250 718,6 0 Rental Property NOI Central Other Financial Income Value Value Taxes N
Slide 9: Statement of financial position
Statement of financial position SEK M 2020 Q4 2019 Q4 Total assets Investment properties 18,612.4 16,270.5 Goodwill 503.0 503.0 Other assets 872.1 865.4 Opening cash and cash equivalents 411.1 131.2 Total assets 20,398.6 17,770.1 Total shareholders’ equity and liabilities Equity 7,590.4 EPRA NRV - 2
Slide 10: Operational review
Operational review CATENA
Slide 11: Rental growth
Rental growth +7 % MSEK 1 264 1400 1 183 18 9 FY 2020 24 41 1200 Like-for-like 1.5 % 11 1000 Project developments 3,5 % 800 Acquisitions 2.1 % 600 Divestments -0,9 % 400 One-off effects 0.8 % 200 Total 6,8 % 0 Income Acquisitions Divestments Projects like-for-like Oneoff Income FY 2019 effect FY 202
Slide 12: Strong and durable cashflow
Strong and durable cashflow Profit ratio, Msek 57 % 1 400 53 % 1 200 1 000 Objectives • 50 percent target on 800 profit ratio 600 • Distribute 50 percent of profit from 400 property management less standard tax 200 0 2015 2016 2017 2018 2019 2020 Rental income Profit from Prpty. Mgmnt 1 Profit from
Slide 13: 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 initial yield ratio % % rent, Msek1 %2 Gothenburg 15 231.7 2,339.6 174.1 98 170.3 7,3 85 Helsingborg 23 450.9 3,807.6 273.3 96 262.8 6,
Slide 14: Portfolio characteristics
Portfolio characteristics By value # of tenants per Tenant concentration Asset size Letteble space types, property by Contractual breakdown, by # by area income properties 13% 8% 12% 42% 7% 38% 20% 50% 53% 56% 47% 29% 45% 7% 43% 18% 12% Gothenburg 10 biggest tenants 1 tenant Helsingborg < 10k sqm Te
Slide 15: Well reputed and diversified customer base
Well reputed and diversified customer base Logistics/Transport Fashion/Leisure Home/Construction >40% Health/Medical Food/Beverage >20% /Recycling /Electronics /Packaging >20% 15
Slide 16: Property value and yield
Property value and yield EPRA NIY Msek 5.5 % 25 000 9% 22 500 8% 20 000 7% EPRA 17 500 6% • In 2017 Catena´s 15 000 5% share was included in 12 500 the international 10 000 4% index EPRA. 3% 7 500 5 000 2% 2 500 1% 0 0% 2016 2017 2018 2019 2020 Assets IFRS property value Gross inital yield EPRA NIY
Slide 17: Rental market
(Numbers indicate rental value per sqm) Rental market Region Stockholm PRIMERENT 742 kr/sqm Stockholm 982 kr/sqm Prime rent - terminal Örebro 578 kr/sqm 900 – 1,700 SEK/M2 Prime rent - Distribution 550 – 1,000 SEK/M2 Region Gothenburg 751 kr/sqm MSEK 1 600 750 1 400 1 200 700 Region Jönköping 1 000
Slide 18: Letting operations
Letting operations MSEK Maturity - Contractual Net rental by contractual value MSEK 60 annual rent 40 600 39,0% 20 500 0 400 -20 300 -40 200 12,6% 12,5% 14,1% 10,8% 10,9% 2018 2019 2019 2019 2019 2020 2020 2020 2020 100 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 0,1% 0 Moved in Moved out Net 2020 2021 2022 2023 202
Slide 19: Debt and capital management
Debt and capital management 19
Slide 20: Debt and Capital Structure
Debt and Capital Structure LTV & Cost of debt Capital structure 100% 4,0% 25 000 37,2% 3,5% 35,6% 80% 20 000 3,0% 32,3% 33,2% 2,5% 15 000 31,6% 60% 2,0% 35,7% 40% 10 000 1,5% 1,0% 5 000 20% 0,5% 0 0% 0,0% 2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020 Interestbearing debt Other liabilit
Slide 21: Funding structure
Funding structure Year Debt maturity loans Interest maturity incl. Funding source derivatives msek Share% Interest rate Msek Share% Interest rate including including 4% Margin% Margin% 6% 0-1 y 3,605.5 37 1.4 4,095.5 42 1.7 12% 1-2 y 1,211.1 13 1.3 500.0 5 3.7 2-3 y 3,036.3 31 1.2 908.0 9 2.7 78% 3-
Slide 22: Capital deployment
Capital deployment CATENA
Slide 23: Capital deployment YTD
Capital deployment YTD Asset acquisitions 389 (MSEK) Transactions INVESTMENT TARGET Set to invest minimum 600 Msek/year in 149 Divestments development projects. Capex Development capex 969 (MSEK) 23
Slide 24: Transactions
Transactions ACQUISITIONS Property Transfer Letteble area Region Municipality Property Rental (sqm) value income/y (MSEK) MSEK Lokesvej 18 Q1 2020 4,176 Malmö (DK) Hilleröd (DK) 96.5 5.8 Kometvej 15 Q1 2020 4,484 Malmö (DK) Horsens (DK) 79.7 4.2 Magasinet 3 Q1 2020 21,240 Stockholm Södertälje 130.0
Slide 25: Development projects in progress
Development projects in progress Storheden 2:1, Luleå Total investment: 70 MSEK NOI: 4.8 MSEK Rosersberg 11:81, Sthlm Finalized: Q4 2021 Speed logistics Total investment: 65 MSEK Finalized: COMPLETED 20Q4 Book value, MSEK 1,270 Norra varalöv 31:11, Ängelholm Boozt Plantehuset 3, Helsingborg Total in
Slide 26: Sustainability
Sustainability CATENA
Slide 27: Sustainability trends in Catena
Sustainability trends in Catena • Catena received to awards by EPRA 2020 – EPRA Silver and EPRA Most Improved Award 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
Slide 28: Key sustainability figures, Q4 2020
Key sustainability figures, Q4 2020 Energy kWh/sqm Energy consumption per sqm 2020 2019 Diff, % • Reduction of energy use per sqm with 6 % compared to 2019 Electricity 71 77 -9% • 92 % (87 %) of Catena’s energy is fossil free. Heating 38 39 -2% • 7 (2) new photovoltaic plants installed in 2020. Esti
Slide 29: Market insights and case studies
Market insights and case studies 29
Slide 30: Tenant market insights: PostNord, Boozt, DHL
PostNord handled around 2 million parcels in the first week of 2021 which corresponds to a growth of 21 % compared to same period 2020. www.PostNord.se Boozt fashion exceeded expectations during 2020 and for 2021 they expect a growth between 20%-25% supported by a high online penetration. www.boozt.
Slide 31: Logistics position Stockholm South
Stockholm South Stockholm Logistics position Stockholm South Land: 450 000 sqm Building rights: appr. 225 000 sqm Planning: Expected 2021 31
Slide 32: Automation, NELLY.com
Automation, NELLY.com • Serving e-commerce and retail, automated warehouse solutions is on its way of becoming a vital part of business with ROI achieved in record time for some tenants. • In november we announced the agreement to finance the automation delivered by Element logic to our tenant Nelly
Slide 33: Luleå, Development
Luleå, Development Total investment: 70 MSEK Type: Cross dock terminal NOI: 4.8 MSEK Tenant: Kyl- och Frysexpressen Nord Initial yield: 6,9% Total sqm: 4,198 Finalized: Q4 2021 33
Slide 34: Potential, future development
(The 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/Söder
Slide 35: Q&A
Q&A Jörgen Eriksson CEO, Sofie Bennsten CFO 35
Slide 36: The leading property company in logistics
The leading property company in logistics.