K-fast Holding Ab Class B · OMXSTO:KFAST_B
K-fast Holding Ab Class B — K-Fastigheter — Merger or Acquisition (December 2024)
19 slides from K-fast Holding Ab Class B's merger presentation, Dec 11, 2024
Slide 1: K-Fastigheter Announcement presentation
K-FASTIGHETER Announcement presentation 11 December 2024 | 15:30 CET
Slide 2: Transaction overview and rationale
TRANSACTION OVERVIEW AND RATIONALE
Slide 3: Background
BACKGROUND Background Transaction with Brinova • Founded in 2010 with the ambition to primarily own investment • The divestment of a SEK 10.8bn1) property portfolio to Brinova is a properties but subsequently started construction to lower acquisition unique opportunity to unlock value in Brinova by
Slide 4: Transaction overview
TRANSACTION OVERVIEW The transaction – Property portfolio in exchange for new shares in Brinova Key transaction rationale – Brinova’s perspective The Divested Property Significant geographic overlap in the attractive Öresund Region with the Portfolio SEK 10.8bn 1. new property portfolio Focused geog
Slide 5: New Brinova at a glance – leading Swedish residential real estate company
NEW BRINOVA AT A GLANCE – LEADING SWEIDSH RESIDENTIAL REAL ESTATE COMPANY Introduction to New Brinova and pro forma KPIs (Q3’24) Rental value and property value splits (Pro forma Q3’24) • One of the largest listed residential real estate companies in Sweden, with scope for Contracted rent by categor
Slide 6: Benchmarking vs. peers – significant increase in size
BENCHMARKING VS. PEERS – SIGNIFICANT INCREASE IN SIZE Property value (SEKbn) Portfolio of SEK 10.8bn1) in property value will be transferred to Brinova 24.5 19.2 15.0 13.9 13.7 13.3 13.0 9.0 8.4 7.0 4.8 Sveafastigheter New Brinova K-Fastigheter John Mattson Neobo HEBA Trianon Klarabo Brinova Genova
Slide 7: Transaction rationale – executing on the communicated strategy
TRANSACTION RATIONALE – EXECUTING ON THE COMMUNICATED STRATEGY Facilitate the creation of Sweden’s second largest public residential company, benefiting 1. from geographical overlap, scale and operational synergies for future value uplift potential Natural step in the execution phase of K-Fastighete
Slide 8: K-Fastigheter post transaction
K-FASTIGHETER POST TRANSACTION Property Construction management South West East Project dev. Construction Prefab ~58% ownership in Brinova • Clear structure with synergies between two legacy segments, Property management and Construction • Lion’s share of value in Property management will post dives
Slide 9: Visualising value and potential in K-Fastigheter's business model
VISUALISUNG VALUE AND POTENTIAL IN K-FASTIGHETER’S BUSINESS MODEL Illustrative change in K-Fastigheter’s property value transitioning into K-Fastigheter 2.0 1 2 3 8.4 Value in Brinova 8.4 8.4 visualised through being a public company Ongoing 1.3 Deconsolidation post and can thus be more New Brinova
Slide 10: Contrasting value creation models
CONTRASTING VALUE CREATION MODELS Production of concept houses Ongoing property management • Equity needed per started apartment SEK 0.43m • Each newly constructed apartment ties up about SEK 1.23m of equity • Project profit per apartment SEK 0.80m • 3% return on equity at 4% interest rate • Gross m
Slide 11: Strategy in practice, K-Fastigheter going forward
STRATEGY IN PRACTICE, K-FASTIGHETER GOING FORWARD Production of concept houses Ongoing property management – decreased platform • Proven value creation model, proprietary construction setup • Ongoing activites: • +80% of profits historically generated within Construction • Identify what and where we
Slide 12: New K-Fastigheter – so much more than a property company
NEW K-FASTIGHETER – SO MUCH MORE THAN A PROPERTY COMPANY Introduction to New K-Fastigheter Geographical footprint ranging from Skåne to Stockholm • Income will continue to primarily be generated from the Construction segment (prior to the Offices transaction 74% of income Q1-3 2024 and 81% of income
Slide 13: Appendix
APPENDIX ud K-FASTIGHETER
Slide 14: The divested property portfolio in brief (1/2)
THE DIVESTED PROPERTY PORTFOLIO IN BRIEF (1/2) 65% of properties completed after 2019 Financials (Q3’24) Selected properties Rental value by geography Contracted rent by category Amerika Södra 27, Helsingborg Värnhem 2, Hässleholm Commercial Hässleholm 7% Other 21% 25% SEK SEK Helsingborg 563.8m 16%
Slide 15: The divested property portfolio in brief (2/2)
THE DIVESTED PROPERTY PORTFOLIO IN BRIEF (2/2) Ongoing development projects constitute ~10% of The Divested Property Portfolio value Pederstrup By 1, Copenhagen Total Expected Total sq.m apartments completion 11,054 153 Q2-Q4’25 Skjutskontoret 3, Malmö Viktoria 22, Helsingborg Total Total apartments
Slide 16: Capitalisation tables
CAPITALISATION TABLES Pre transaction Post transaction Illustrative example – post intended dividend Largest owners Capital % Votes % Largest owners Capital % Votes % Largest owners Capital % Votes % Backahill AB 24.0% 40.0% K-Fastigheter 57.7% 57.7% Erik Selin Fastigheter AB 18.7% 18.7% Fastighets
Slide 17: K-Fastigheter pro forma consolidated financials
K-FASTIGHETER PRO FORMA CONSOLIDATED FINANCIALS K-Fastigheter after the transaction, Q1-Q3 2024 K-Fastigheter before the transaction Brinova after the transaktion K-Fastigheter excl. Region Syd consolidated Rental income 452.9 859.5 727.5 132.0 Other income 367.8 369.1 5.9 363.2 Operating costs -446
Slide 18: K-Fastigheter key performance indicators
K-FASTIGHETER KEY PERFORMANCE INDICATORS K-Fastigheter after the transaction, 30 September 2024 K-Fastigheter before the transaction Brinova after the transaktion K-Fastigheter excl. Region Syd consolidated Rental value, SEKm 655.2 1,231.5 1,073.3 157.1 Contracted rent, SEKm 624.7 1,164.1 1,007.6 15
Slide 19: (io
(io
K-Fastigheter — Merger or Acquisition (December 2024) on 6ix