Catena Ab · OMXSTO:CATE
Catena Ab — Q3 2024 Earnings Presentation
32 slides from Catena Ab's earnings presentation, Oct 25, 2024
Slide 1: Properties for the logistics of the future
Q3 2024 Presentation October 2024 Properties for the logistics of the future Presentation Q3 2024 1
Slide 2: Q3 2024 Presentation
Q3 2024 Presentation October 2024 Q3 2024 Presentation Jörgen Eriksson Sofie Bennsten David Silvesjö CEO Deputy CEO and CFO Chief Treasury Officer 2
Slide 3: Agenda
Q3 2024 Presentation October 2024 Agenda 1. Summary 5. Financial update 2. Business overview 6. Takeaways from today 3. Business update 7. Q&A 4. Sustainability 3
Slide 4: Q3 YTD 2024 summary: Big steps forwards
Q3 2024 Presentation October 2024 Q3 YTD 2024 summary: Big steps forwards • Rental income increased by 17 percent to 1,566 SEK Profit from Property Management (PFPM) 1107 + 7% SEK M million, mainly due to indexation and acquisitions 954 911 849 • Profit from property management increased by 824 7 pe
Slide 5: Business overview
Business overview Sector-leading portfolio and prime customer base.
Slide 6: Market update
Q3 2024 Presentation October 2024 Market update • Transactions – more bidders and more aggressive bids • E-commerce continues to trend upwards • New developments, some more activities • Oversupply, same situation 6
Slide 7: Customer base
Q3 2024 Presentation October 2024 Customer base Customers Share of contractual value Packaging Public sector Others Industry 2% 2% 3% DSV 20% 3% Healthcare DHL 8% Construction and 3% ICA 7% furnishing 3% Martin & Servera 5% Postnord 4% Boozt 3% Durable goods 15% Nowaste Logistics 3% Logistics and DK
Slide 8: Portfolio
Q3 2024 Presentation October 2024 Portfolio Regions Number of Lettable Fair Value, Rental value, Economic Contractual Surplus ratio, properties area, Tsqm SEK M SEK M letting ratio, annual rent, %2 % SEK M1 Sweden South 42 925 12,508 774 96 744 80 Sweden West 37 639 8,370 510 97 496 83 Sweden East 4
Slide 9: Business update
Business update A strong financial position, large acqusitions and a unique landbank.
Slide 10: Catena carries out a directed new share issue and acquires DSV Horsens
Q3 2024 Presentation April 2024 Catena carries out a directed new share issue and acquires DSV Horsens • Raised SEK 3,1 billion • Catena used the lion’s share of the proceeds to acquire from DSV in Horsens • Value creation and a significant increase in earnings going forward 10
Slide 11: Upgraded credit rating
Q2 2024 Presentation July 2024 Upgraded credit rating • In October, Fitch Ratings upgraded Catena’s credit rating from BBB- to BBB with a stable outlook, the new rating reflects: • improvements in Catena´s business and financial profile accompanied with an increased trust from the capital market • a
Slide 12: Substantial acquisition in Denmark
Q3 2024 Presentation October 2024 Case Substantial acquisition in Denmark Location: Horsens, Denmark Property value: SEK 5 billion Estimated NOI: appr. 300 MSEK Tenant: DSV GLA: 315 000 sqm Certification: DGNB Silver and 12 Gold
Slide 13: Logistics Position Ramlösa – ongoing project
Q3 2024 Presentation October 2024 Case Logistics Position Ramlösa – ongoing project Location: Helsingborg, Tenant: Nowaste Logistics GLA: 75,000 sqm Certification: BREEAM Excellent 13
Slide 14: Klökan 1:25 completed
Q3 2024 Presentation October 2024 Case Klökan 1:25 completed Location: Sundsvall Investment: 120 MSEK Estimated NOI: 8,1 MSEK Tenant: Kyl- och Frysexpressen GLA: 5,012 sqm Certification: BREEAM Very good 14
Slide 15: Current development
Q3 2024 Presentation October 2024 Current development 1,773 SEK M Carrying value 822 SEK M Remaining Stigamo 1.49, Tenant: Nowaste Logistics Sqm: 33,000 Investments Jönköping Investment: 379 SEK M Finalized: Q4 2024 Dansered 1:66, Tenant: MM-Sport, Menigo Sqm: 50,990 202 Tsqm Härryda Investment: 712
Slide 16: Future development
Q3 2024 Presentation October 2024 Future development Stockholm South, Land, Sqm: 450,000 Nykvarn/Södertälje Zoning plan approved Logistics Position Järna Land Sqm: 1,000,000 4,600 Ksqm Södertälje Pending zoning plan Land bank Örebro South (JV, 50%), Land, Sqm: 920,000 Törsjö Pending zoning plan 1,70
Slide 17: Leasing update
Q3 2024 Presentation October 2024 Leasing update Maturity profile – Net leasing WALE development Letting ratio contractual annual rent 6,7 60,0% SEK M 97,5% 50,0% 97,2% 250 97,0% 96,8% 5,5 5,5 40,0% 96,5% 200 5,1 5,0 5,1 96% 96,6% 4,9 96,0% 150 30,0% 95,5% 95,0% 95% 100 20,0% 94,7% 94,5% 94,0% 50 10
Slide 18: Sustainability
Sustainability We are taking long-term responsibility.
Slide 19: Sustainability
Q3 2024 Presentation October 2024 Sustainability Continued progress towards 2030 targets Sustainability targets Q3 2024 2023 2022 2021 Trend • 42 percent of lettable area is environmentally Net-zero greenhouse gas emissions by 2030 certified -Scope 1-2 (location based) 3,367 3,612 2,814 2,632 • Now
Slide 20: Financial update
Financial update Strong cashflows and balance sheet provides flexibility and opportunity.
Slide 21: Income
Q3 2024 Presentation October 2024 Income Rental income Net operating surplus Profit from property management SEK M +17% SEK M +17% SEK M +7% 1 808 1 447 1107 1 544 1566 1276 954 911 1 220 1 387 1343 1 095 1088 824 849 1 264 1 004 1 183 719 903 627 828 571 2019 2020 2021 2022 2023 Q3 Q3 2018 2019 202
Slide 22: Rental development
Q3 2024 Presentation October 2024 Rental development 82 1566 99 47 1343 Q3 2024 YoY -5 Like-for-like1 6,1 % SEK M Project development 3,5 % Acquisitions 7,3 % Divestments -0,3 % Total 16,6 % Q3 2023 Acqusitions Divestments Projects Like-for-like Q3 2024 • LFL is driven by CPI increase • The acquisit
Slide 23: Capital structure management
Q3 2024 Presentation October 2024 Capital structure management SEK M Capital structure strength maintained 50 000 60% 40 000 50% 40% 30 000 • During Q3, we raised SEK 3.1 billion in 20 000 30% 20% equity, followed by an acquisition in 10 000 10% Denmark that immediately added value 0 2018 2019 2020
Slide 24: Financial position
Q3 2024 Presentation October 2024 Financial position Operations and strategy support metrics 60 4 3,5 • Key metrics comfortably within policy - and covenant 50 3 range 40 2,5 30 2 • Rating upgrade to BBB (Fitch), after report date 20 1,5 1 10 0,5 • The proportion of sustainable debt has grown, 0 0 r
Slide 25: Debt and money management
Q3 2024 Presentation October 2024 Debt and money management SEK M Debt management Debt maturity profile 5 000 • Credit spreads and margins have further tightened during 4 000 the quarter, contributing to a deceleration in future capital costs 3 000 2 000 • Issued SEK 1 billion of unsecured bonds, te
Slide 26: Interest rate management
Q3 2024 Presentation October 2024 Interest rate management Market rates in Europe expected to fall SEK M Interest maturity profile 62% Interest • Slower pace of inflation and productivity is putting 9 000 8 000 7 816 hedge ratio pressure on the ECB and the Nordic central banks 7 000 6 000 4 677 5 00
Slide 27: Transactions
Q3 2024 Presentation October 2024 Capital deployment 8,653 Acquisitions (SEK M) Transactions 12 000,0 10 000,0 8 000,0 -591 Divestments (SEK M) 6 000,0 4 000,0 2 000,0 Development CAPEX 0,0 1,856 Capex (SEK M) -2 000,0 2019 2020 2021 2022 2023 Q3 2023 Q3 2024 Acquisition CAPEX (net) Development CAPE
Slide 28: Property valuation
Q3 2024 Presentation October 2024 Property valuation 5.5% EPRA NIY Higher yields mitigated by higher rent 50 000 7,0% levels 45 000 6,0% 40 000 • Value changes Q3 2024 35 000 5,0% • - 4 MSEK of unrealized value changes 30 000 4,0% 25 000 • Driven by higher yields, mitigated by higher 3,0% 20 000 ren
Slide 29: Takeaways from today
Takeaways from today CATENA
Slide 30: Catena delivers a strong Q3-report
Q3 2024 Presentation October 2024 1. Catena delivers a strong Q3-report 2. Delivered upon what we told the market related to the equity raises in Q1 and Q3 3. Significant uplift in earnings capacity for the coming 12 months 30
Slide 31: Q&A
Q3 2024 Presentation October 2024 Q&A Jörgen Eriksson Sofie Bennsten David Silvesjö CEO Deputy CEO and CFO Chief Treasury Officer 31
Slide 32: Q3 2024 Presentation October 2024
Q3 2024 Presentation October 2024 32