K2a Knaust & Andersson Fastigheter Ab Class B · OMXSTO:K2A_B
K2a Knaust & Andersson Fastigheter Ab Class B — Debt Investor Presentation (January 2021)
54 slides from K2a Knaust & Andersson Fastigheter Ab Class B's debt investor presentation, January 2021
Slide 1: Green Hybrid Bond Investor Presentation
Green Hybrid Bond Investor Presentation January 2021 K2A Knaust & Andersson Fastigheter AB (publ)
Slide 2: Disclaimer
Investor presentation – January 2021 DISCLAIMER Acceptance of limitations: The information in this presentation (the “Material”) is furnished by K2A Knaust & Andersson Fastigheter AB (publ), 556943-7600 (“K2A” or the “Company”) solely for the recipient’s information in connection with a contemplated
Slide 3: Agenda
Investor presentation – January 2021 K2A is a long-term owner, developer and manager of rental apartments and community service properties in Stockholm/Mälardalen and university cities in Sweden AGENDA 1 Introduction and transaction summary 2 Company overview 3 Portfolio and market overview 4 Sustai
Slide 4: Transaction Overview
Investor presentation – January 2021 TRANSACTION OVERVIEW Snapshot of K2A Summary of indicative terms ▪ K2A Knaust & Andersson Fastigheter AB is a real estate Company Issuer: K2A Knaust & Andersson Fastigheter AB (publ) (“K2A” or the “Issuer”) focusing on long-term ownership and property management
Slide 5: Today's Presenters
Investor presentation – January 2021 TODAY’S PRESENTERS Johan Knaust Christian Lindberg CEO Deputy CEO Johan Knaust is CEO and co-founder of K2A. Christian Lindberg is Deputy CEO and former Johan has co-founded Sveafastigheter and CFO of K2A, Christian has founded HCL Leimdörfer’s Corporate Finance.
Slide 6: Key Credit Highlights
Investor presentation – January 2021 KEY CREDIT HIGHLIGHTS ▪ K2A has a diversified portfolio consisting of rental- and student apartments and community service properties ▪ The investment properties and ongoing projects are primarily located in Stockholm/Mälardalen and university High quality proper
Slide 7: Agenda
Investor presentation – January 2021 K2A is a long-term owner, developer and manager of rental apartments and community service properties in Stockholm/Mälardalen and university cities in Sweden AGENDA 1 Introduction and transaction summary 2 Company overview 3 Portfolio and market overview 4 Sustai
Slide 8: K2A in Brief
Investor presentation – January 2021 K2A IN BRIEF Company overview Financial key ratios Geographical presence ▪ K2A was founded in 2013 and is a Swedish real estate company Properties and projects focusing on long-term management of in-house developed Student apartments apartments and community serv
Slide 9: Value-Creating Business Model
Investor presentation – January 2021 VALUE-CREATING BUSINESS MODEL K2A controls the entire value chain… …from customer analysis to long-term ownership and management… ▪ K2A is involved through the entire value chain, from customer analysis to land acquisition, own industrial production, construction
Slide 10: History of Value Creation
Investor presentation – January 2021 HISTORY OF VALUE CREATION Property portfolio growth Property SEKm 6,831 portfolio # 6,721 7,000 5,125 6,080 6,118 4,684 5,000 5,828 6,000 5,364 5,191 5,351 5,113 4,023 4,749 4,801 4,807 4,000 5,000 3,468 3,468 3,306 3,965 3,105 4,000 3,617 2,783 2,839 3,000 2,593
Slide 11: H2 Update – Significant Events
Investor presentation – January 2021 H2 UPDATE – SIGNIFICANT EVENTS Continued solid financials Successful Green bond issue Head of Sustainability in management team ✓ On average, increase net operating LTM Q3 income by 25% per year until 2025 45% ✓ On average, increase EPRA NAV by LTM Q3 20% per yea
Slide 12: Pioneers in the Green Capital Markets
Investor presentation – January 2021 PIONEERS IN THE GREEN CAPITAL MARKETS K2A constantly explores how to further develop the Company’s sustainability work 1 Green Equity Framework ▪ K2A announced the launch of its Green Equity Framework in May 2020 ▪ K2A is the first company to use CICERO’s extende
Slide 13: Agenda
Investor presentation – January 2021 K2A is a long-term owner, developer and manager of rental apartments and community service properties in Stockholm/Mälardalen and university cities in Sweden AGENDA 1 Introduction and transaction summary 2 Company overview 3 Portfolio and market overview 4 Sustai
Slide 14: Cost-Effective Production of Flexible Buildings
Investor presentation – January 2021 COST-EFFECTIVE PRODUCTION OF FLEXIBLE BUILDINGS Standardised production… …of space-efficient apartments… ▪ K2A has developed four types of space-efficient standard apartments, creating flexibility and implying a possibility of variation ▪ The buildings’ design ca
Slide 15: Production Facilities in Gävle and Valdemarsvik
Investor presentation – January 2021 PRODUCTION FACILITIES IN GÄVLE AND VALDERMARSVIK Optimised industrial production through Grännäs Trähus ~1,000 units in annual capacity from two production facilities ▪ The apartments are produced in factories in Gävle and Valdemarsvik through Grännäs Trähus, whi
Slide 16: Long-Term & Local Property Management
Investor presentation – January 2021 LONG-TERM & LOCAL PROPERTY MANAGEMENT Three categories of investment properties… ...with an innovative digitalised management web Distribution by ▪ Local property managers meet the tenants regularly with on- Investment properties’ value Number of apartments sight
Slide 17: High Quality Produced Real Estate Portfolio
Investor presentation – January 2021 HIGH QUALITY PRODUCED REAL ESTATE PORTFOLIO Properties and projects Student apartments Property & project split (# of apartments) Residential type (sqm) Geographical split1 (sqm) Rental apartments Community service properties Factory Kiruna 19% 21% Property portf
Slide 18: Selected Properties from All Three Categories
Investor presentation – January 2021 SELECTED PROPERTIES FROM ALL THREE CATEGORIES Rental apartments Student apartments Community service properties EKOLOGEN OREGANON 1 ANDERSBERG2 Växjö Rental apartments: 75 apartments Örebro Student apartments 306 apartments Gävle LSS accommodation: 6 apartments V
Slide 19: Projects in Pipeline
Investor presentation – January 2021 PROJECTS IN PIPELINE City: Lund City: Örebro Category: Rental apartments Category: Rental apartments Construction start: 2020 Construction start: Q3 2020 Completion: 2022 Completion: 2021 Total area: 3,497 sqm Total area: 3,126 sqm Apartments: 98 Apartments: 115
Slide 20: Case Study – Kungsbäck Built in Three Stages
Investor presentation – January 2021 CASE STUDY – KUNGSBÄCK BUILT IN THREE STAGES Wooden apartments in a strategic location close to campus Why Gävle? ▪ With its 102,000 inhabitants, Gävle is Sweden’s Stage 1 Rental value SEK 10.2m 17th largest municipality 133 Student apartments Area 4,499 sqm 2018
Slide 21: Urbanisation and Housing Shortage
Investor presentation – January 2021 URBANISATION AND HOUSING SHORTAGE Local population CAGR in K2A’s active areas Large gap between new homes & population growth results in high housing demand Properties and projects Population CAGR 2000-2019 (%) 160,000 60% Student apartments 140,000 Rental apartm
Slide 22: Steady Growth of Properties in Urban Areas
Investor presentation – January 2021 STEADY GROWTH OF PROPERTIES IN URBAN AREAS Today’s property portfolio will be transformed when the existing project portfolio is completed Lettable area, sqm Equal split of rental apartments and … with the majority concentrated in 35% completed already in 2020 an
Slide 23: Agenda
Investor presentation – January 2021 K2A is a long-term owner, developer and manager of rental apartments and community service properties in Stockholm/Mälardalen and university cities in Sweden AGENDA 1 Introduction and transaction summary 2 Company overview 3 Portfolio and market overview 4 Sustai
Slide 24: Overall Sustainability Objectives
Investor presentation – January 2021 OVERALL SUSTAINABILITY OBJECTIVES Green financing The goal is that new financing with the use of proceeds directed towards new production shall be green 100% K2A is a long-term property owner who wants 100% 100% to contribute through responsible business to the d
Slide 25: Sustainability Through the Entire Value Chain
Investor presentation – January 2021 SUSTAINABILITY THROUGH THE ENTIRE VALUE CHAIN… Sustainable development in three dimensions Organic sustainability through climate-smart production and sustainable material choices ▪ Rational, energy-efficient industrial construction technology that results in few
Slide 26: Creating a Long-Term Sustainable Business
Investor presentation – January 2021 …CREATING A LONG-TERM SUSTAINABLE BUSINESS Social sustainability through a safe and committed environment Rental income and net operating income, SEKm Smaller and smarter rental properties ▪ Through smarter planned rental properties in attractive locations where
Slide 27: Green Finance Framework (1/2)
Investor presentation – January 2021 GREEN FINANCE FRAMEWORK (1/2) Aligned with K2A’s sustainability strategy Eligible projects under K2A’s Green Finance Framework The Company's efforts to limit and reduce the environmental impact of its business are based on the principles of the UN Global Green bu
Slide 28: Green Finance Framework (2/2)
Investor presentation – January 2021 GREEN FINANCE FRAMEWORK (2/2) Strengths of the Green Finance Framework… … and from CICERO’s second opinion Well aligned with the Green Bond and Green Loans Principles (2018) CICERO Shades of Green finds the governance procedures in K2A’s framework to be Excellent
Slide 29: Agenda
Investor presentation – January 2021 K2A is a long-term owner, developer and manager of rental apartments and community service properties in Stockholm/Mälardalen and university cities in Sweden AGENDA 1 Introduction and transaction summary 2 Company overview 3 Portfolio and market overview 4 Sustai
Slide 30: Financial Overview (1/2)
Investor presentation – January 2021 FINANCIAL OVERVIEW (1/2) Rental income, SEKm Net operating income, SEKm 185 127 148 98 113 74 84 53 49 33 23 15 2015 2016 2017 2018 2019 LTM Q3 2020 2015 2016 2017 2018 2019 LTM Q3 2020 Profit after tax, SEKm ▪ Rental income has steadily grown since 2015 and incr
Slide 31: Financial Overview (2/2)
Investor presentation – January 2021 FINANCIAL OVERVIEW (2/2) Property portfolio value, SEKm 5,125 ▪ The property portfolio value has increased by SEK 1,102.2m (485.8) from the year end of 2019 to Q3 2020 4,023 ▪ As per Q3 2020 the property value was SEK 5,125.3m (3,590.6), an increase by 43% compar
Slide 32: Key Credit Metrics
Investor presentation – January 2021 KEY CREDIT METRICS Interest coverage ratio, x Equity ratio, % Average 2.0x Average 33% Target > 1.5x 2.3x 2.3x 2.1x 43% 1.9x 1.9x 37% 1.6x 31% 32% 28% 28% 2015 2016 2017 2018 2019 LTM Q3 2020 2015 2016 2017 2018 2019 Q3 2020 Loan-to-value, % ▪ The interest covera
Slide 33: Financing and Capital Structure
Investor presentation – January 2021 FINANCING AND CAPITAL STRUCTURE Fixed rate period and loan maturity Capital structure, SEKm Fixed rate period Loan maturity Loan volume, Interest rate, Credit agreement, Drawn, Undrawn, Year SEKm % SEKm SEKm SEKm Floating interest rate 1,335 3.04 - - - 4% 4% 2020
Slide 34: Financial Targets and Strategy
Investor presentation – January 2021 FINANCIAL TARGETS AND STRATEGY SEKm +30% +32% 127 The net operating income shall increase, on +40% +61% 98 Net operating income average, with a minimum of 25% annually +111% 74 from 2019 until 2025 53 33 Financial 2016 2017 2018 2019 LTM Q3 2020 targets SEKm +20%
Slide 35: Agenda
K2A is a long-term owner, developer and manager of rental apartments and community service properties in Stockholm/Mälardalen and university cities in Sweden AGENDA 1 Introduction and transaction summary 2 Company overview 3 Portfolio and market overview 4 Sustainability and Green finance framework
Slide 36: Management and Board of Directors
Investor presentation – January 2021 MANAGEMENT AND BOARD OF DIRECTORS Management Board of Directors Johan Knaust Ulrika Grewe Ståhl Johan Thorell Claes-Henrik Julander CEO and Board member CFO Chairman of the Board Board member Experience: Sveafastigheter, Experience: Intea, Strawberry Selected ass
Slide 37: The K2A Shares
Investor presentation – January 2021 THE K2A SHARES B-Share performance Ownership as per Q3 2020 Price, SEK Daily turnover, SEKm Owner Capital % Votes % 250 40 35 Johan Knaust with company 29.1 28.0 200 30 Länsförsäkringar Fastighetsfond 13.3 6.6 150 25 20 Johan Thorell with company 8.6 15.7 100 15
Slide 38: Agenda
Investor presentation – August 2020 K2A is a long-term owner, developer and manager of rental apartments and community service properties in Stockholm/Mälardalen and university cities in Sweden AGENDA 1 Introduction and transaction summary 2 Company overview 3 Portfolio and market overview 4 Sustain
Slide 39: Risk Factors (Issuer)
Investor presentation – January 2021 RISK FACTORS (ISSUER) In this section, the risk factors which the Issuer considers to be material risks relating to the Issuer and the Capital Securities are illustrated. The Issuer’s assessment of the materiality of each risk factor is based on the probability o
Slide 40: Risk Factors (Issuer)
Investor presentation – January 2021 RISK FACTORS (ISSUER) The risks above may, if materialised, lead to delays in planned and current projects, as well as higher costs for production, conversion and management of the properties, which in turn could lead to decreased earnings. The Issuer deems the p
Slide 41: Risk Factors (Issuer)
Investor presentation – January 2021 RISK FACTORS (ISSUER) Risks due to rental value and rental income The Issuer is a real property company mainly focused on development and production of rental housing, student housing and properties for public use, as well as long-term ownership and management of
Slide 42: Risk Factors (Issuer)
Investor presentation – January 2021 RISK FACTORS (ISSUER) Dependence on retaining and recruiting key employees The Issuer is dependent on about nine key employees. These employees have extensive knowledge of the property market and the Issuer’s operations. The experience and commitment of these emp
Slide 43: Risk Factors (Issuer)
Investor presentation – January 2021 RISK FACTORS (ISSUER) Further, since most of the Issuer's properties are used for residential purposes, the Issuer normally must conduct its operations in accordance with higher environmental requirements than what would be the case if the properties were used fo
Slide 44: Risk Factors (Issuer)
Investor presentation – January 2021 RISK FACTORS (ISSUER) Interest rates risk Changes in costs of funding of interest will affect the Issuer's interest expenses, which represent the Issuer's single largest cost item. Interest rate risk could result in a change in fair value, changes in cash flow an
Slide 45: Risk Factors (Capital Securities)
Investor presentation – January 2021 RISK FACTORS (CAPITAL SECURITIES) RISK FACTORS SPECIFIC AND MATERIAL TO THE CAPITAL SECURITIES Risks relating to the nature of the Capital Securities The Capital Securities are subordinated to most of the Issuer’s liabilities The Capital Securities represent deep
Slide 46: Risk Factors (Capital Securities)
Investor presentation – January 2021 RISK FACTORS (CAPITAL SECURITIES) Holders of the Capital Securities have very limited rights in relation to the enforcement of payments on the Capital Securities The Holders’ rights of enforcement in respect of payments under the Capital Securities are subject to
Slide 47: Risk Factors (Capital Securities)
Investor presentation – January 2021 RISK FACTORS (CAPITAL SECURITIES) Redemption and Repurchase of the Capital Securities Upon the occurrence of an Accounting Event, a Change of Control Event, a Rating Event, a Substantial Repurchase Event, a Tax Deductibility Event or a Withholding Tax Event (or a
Slide 48: Risk Factors (Capital Securities)
Investor presentation – January 2021 RISK FACTORS (CAPITAL SECURITIES) The Issuer deems the probability of risks related to the floating rate structure of the Capital Securities materialising to be medium. If the risks would materialise, the Issuer considers the potential negative impact to be low.
Slide 49: Risk Factors (Capital Securities)
Investor presentation – January 2021 RISK FACTORS (CAPITAL SECURITIES) No restriction on issuing or guaranteeing debt There is no restriction in the Terms and Conditions in relation to issuing or guaranteeing debt ranking senior to or pari passu with the Capital Securities. The Issuer and its subsid
Slide 50: Agenda
Investor presentation – August 2020 K2A is a long-term owner, developer and manager of rental apartments and community service properties in Stockholm/Mälardalen and university cities in Sweden AGENDA 1 Introduction and transaction summary 2 Company overview 3 Portfolio and market overview 4 Sustain
Slide 51: Income Statement and Earnings Capacity
Investor presentation – January 2021 INCOME STATEMENT AND EARNINGS CAPACITY Consolidated income statement SEKm 2016 2017 2018 2019 LTM Q3 2020 LTM Q3 2019 Rental income 49 84 113 148 185 137 Property expenses -17 -32 -39 -50 -58 -49 Net operating income 33 53 74 98 127 88 Central administration -14
Slide 52: Balance Sheet
Investor presentation – January 2021 BALANCE SHEET Consolidated balance sheet SEKm 2016 2017 2018 2019 Q3 2020 Q3 2019 ASSETS Investment properties 1,428 2,351 3,105 4,023 5,125 3,591 Other tangible assets 10 45 78 200 211 174.5 Short term receivables 8 23 49 30 108.9 59.4 Cash and cash equivalents
Slide 53: Cash Flow Statement
Investor presentation – January 2021 CASH FLOW STATEMENT Consolidated cash flow statement SEKm 2016 2017 2018 2019 LTM Q3 2020 LTM Q3 2019 OPERATING ACTIVITIES Profit from property management 10 16 15 19 33 10 Adjustments for non-cash flow items 1 2 2 -2 10.5 -3 Income tax paid -5 - -1 - - 2 Changes
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