Catena Ab · OMXSTO:CATE
Catena Ab — Q3 2019 Earnings Presentation
31 slides from Catena Ab's earnings presentation, 2019
Slide 1: The leading property company in logistics
The leading property company in logistics.
Slide 2: Contents
Contents 1. Highlights 2. Results and balance overview 3. Operational review 4. Capitalization 5. Capital deployment 6. Outlook and cases Q&A 2
Slide 3: Highlights
Highlights Another satisfying quarter, despite a global economic slowdown customer demand remains strong • YTD Profit from property management1 of 478 msek, up 13% and 8% in the quarter YoY. Total operations • YTD Earnings per share (EPS) of 22,59 sek, up 27%. • Letting ratio maintains strong at 96%
Slide 4: Results and balance overview
Results and balance overview 2019, Q3 4
Slide 5: Income statement – Period (YTD)
Income statement – Period (YTD) 653 150 Surplus 12,68 22,59 2019 Q3: SEK M kr/sqm kr/sqm ratio per per share 77% share 663,4 1200 1100 1000 885,1 900 79,9 800 700 +12% 209,7 +28% 600 203,2 500 24 5,2 +13% 400 174,7 851,8 300 681,9 200 478 100 0 Rental Property NOI Central Other Financial net Income
Slide 6: Statement of financial position
Statement of financial position SEK M 2019 Q3 2018 Q3 Total assets Investment properties 15,918.3 14,257.4 Goodwill 503.0 503.0 Other assets 842.3 504.3 Opening cash and cash equivalents 484.0 243.4 Total assets 17,747.6 15,508.1 Total shareholders’ equity and liabilities Equity 5,952.4 NAV 194 SEK/
Slide 7: Operational review
Operational review CATENA
Slide 8: Cash flow remains strong
Cash flow remains strong YTD Msek Profit 1 200 surplus 54% 1 000 52% 54% 800 600 400 200 0 2015 2016 2017 201809 2018 201909 Rental income Profit from property management 1 Profit from property management comprises profit adjusted for value changes (realized and unrealized) related to properties, de
Slide 9: Portfolio characteristics (1)
Portfolio characteristics 1 (2) Regions # of Lettable area Fair Value Rental value Economic Contractual Surplus ratio properties tsqm Msek Msek letting ratio annual rent, % % SEK M Gothenburg 15 231.2 2,278.7 182.0 99 180.1 87 Helsingborg 23 380.7 2,850.0 220.2 95 210.2 75 Jönköping 12 209.6 1,210.8
Slide 10: Portfolio characteristics (2)
Portfolio characteristics 2 (2) By value # of tenants per Tenant concentration by Asset size Letteble space types, property Contractual income breakdown by area 7% 12% 14% 39% 8% 46% 44% 55% 18% 45% 54% 47% 31% 46% 8% 15% 16% 10 biggest tenants < 10k sqm Terminals Gothenburg Helsingborg 1 tenant Res
Slide 11: Well-spread and stable customerbase
Well-spread and stable customerbase
Slide 12: Property value and yield
Property value and yield EPRA NIY Msek 6,0% 20 000 EPRA NIY 6,0% 18 000 16 000 14 000 12 000 10 000 8 000 6 000 4 000 2 000 0 2015 2016 2017 Q3 2018 2018 Q3 2019 Assets IFRS property value 12
Slide 13: Rental market
Rental market Region Stockholm 719 kr/sqm Stockholm 943 kr/sqm Örebro 551 kr/sqm Msek 1 400 720 Letting 1 200 700 ratio 1 000 800 680 96% 660 Region Gothenburg 600 787 kr/sqm Region Jönköping 400 640 559 kr/sqm 200 620 0 600 Region Helsingborg 2015 2016 2017 Q3 2018 Q3 578 kr/sqm 2018 2019 Region Ma
Slide 14: Leasing activity and contract maturity
Leasing activity and contract maturity Net rental by contractual value Maturity - Contractual WALE 120,0 annual rent 100,0 500,0 39% 5y 80,0 450,0 60,0 400,0 40,0 350,0 20,0 0,0 300,0 -20,0 250,0 17% -40,0 200,0 14% 11% 12% -60,0 150,0 -80,0 8% 100,0 50,0 0% – 2019 2020 2021 2022 2023 2024 2025+ Sig
Slide 15: A history of growth
A history of growth Profit from property management per share EPRA NAV per share Return on equity 20 250 30 25 16 200 20 12 150 15 10 8 100 5 4 50 0 0 0 Return on equity Average 15
Slide 16: Capitalization
Capitalization CATENA
Slide 17: Capitalization
Capitalization LTV & Cost of debt Capital structure 100,0% 4,0% 20 000 33,5% 3,5% 18 000 33,2% 33,2% 80,0% 16 000 32,3% 3,0% 14 000 31,6% 60,0% 2,5% 12 000 2,0% 10 000 40,0% 1,5% 8 000 35,7% 6 000 1,0% 20,0% 4 000 0,5% 2 000 0,0% 0,0% 0 2015 2016 2017 Q3 2018 2018 Q3 2019 2015 2016 2017 Q3 2018 2018
Slide 18: Funding structure
Funding structure Year Debt maturity loans Interest maturity incl. derivatives Funding source msek Share% Interest rate msek Share% Interest rate including including 9% Margin% Margin% 0-1 y 3,852 43 1.33 4,464 50 1.21 15% 1-2 y 2,643 29 1.06 757 8 4,85 2-3 y 1,276 14 1.37 500 6 3.75 3-4 y 1,158 13
Slide 19: Capital deployment
Capital deployment Focus on development 19
Slide 20: Transactions
Capital deployment YTD Acquisitions/Divestments 82 Asset acquisitions Transactions Property Transfer Letteble Region Property area (sqm) value (MSEK) Välingen 2 Q1 2019 3 430 Stockholm 20,4 - Divestments Sockret 7 Q2 2019 2 707 Malmö 9,2 Muttern 6 Q2 2019 7 800 Gothenburg 52,1 Capex 505 Development
Slide 21: Development projects in progress
Development projects in progress Rosersberg 11:81, Sthlm Book value, MSEK 580 Speed logistics Sothönan 3, Katrineholm Total investment: 65 MSEK Postnord Finalized: Q2 2020 Total investment: 36 MSEK Finalized: Q3 2020 Norra varalöv 31:11, Helsingborg Remaining investments, Total investment: 193 MSEK
Slide 22: Outlook and cases
Outlook and cases We develop logistics positions 22
Slide 23: Sustainability trends in Catena's business
Sustainability trends in Catena’s business Sustainability manager hired Q1, 2019 • Corporate culture • Increasing building certifications underpins our - Miljöbyggnad Silver, target in sustainability efforts all developing projects. Five • Recruting and retaining projects ongoing Q3, 2019 Environmen
Slide 24: Trends in E-commerce
Trends in E-commerce Groceries Physical stores E-commerce 24% Sports/leisure 16% Consumer electronics 16% E-commerce 90% 10% Home decoration/Furniture 13% growth Q2 2019 Fashion 12% 13% 674 bn 77 bn Building materials 7% (2018) (2018) Toys 5% Books/Media 0% Sourze: Postnord E-barometern, Svensk dagl
Slide 25: DHL Freight, Chefs Culinar, Svensk Cater
PHASE 5 (201907) Customer: DHL Express Distribution Investment: 150 msek ERV: 10,5 Msek Logistics Position SQM: 10 000 10 year contract DHL FREIGHT Sunnanå Final: Q3 2020 CHEFS CULINAR SVENSK CATER MULTI TENANT Total investment: 969 MSEK Total Rental value: 71 MSEK Gross yield: 7,3% Total sqm: 79 40
Slide 26: Dream Logistics, E-commerce warehouse, Boozt
E-city Logistikposition Tostarp Engelholm DREAM LOGISTICS, E-COMMERCE WAREHOUSE PHASE 3 (201909) Customer: Boozt E-commerce warehouse Investment: 193 msek NOI: 12 msek SQM: 22 800 BOOZT, 11 year contract E-COMMERCE WAREHOUSE Total investment: 572 MSEK Total Rental value: 48 MSEK Gross yield: 8,4 % T
Slide 27: Nowaste and PostNord, Tostarp
NOWASTE, AUTOMATED PHASE 5 (201910) HIGH BAY OMNICHANNEL Customer: Nowaste E-commerce warehouse Investment: 132 msek POSTNORD, RV: 10 msek Logistics Position Logistikposition SQM: 18 000 TERMINAL Tostarp 5 year contract Tostarp NOWASTE, E-COMMERCE WAREHOUSE Total investment: 753 MSEK Total Rental va
Slide 28: Oriola, high bay warehouse; energy efficiency projects
ORIOLA, HIGH BAY WAREHOUSE Logistikposition Energy efficiency Tostarp projects Solsten 1:102 Ongoing Installed Project: Photovoltaic Project: Goethermal cells heating Annual savings: appr. Annual savings: appr. 220,000 kWh 980,000 kWh Customer: Oriola Total investment: 7,2 MSEK E annual savings: 920
Slide 29: Potential, future development projects
Magneten 6 Umeå Sqm: 42’ Investment land: 37 MSEK Potential, future development projects Örebro (JV, 34%) Törsjö Sqm: 700’-900’ Investment land: 315 MSEK Ånsta 1:1 Stockholm Syd Potential Potential Sqm: 450’ Land-bank lettable investment Investment land: 315 MSEK tsqm area tsqm MSEK 2,800 1,000 8,00
Slide 30: Q&A
Q&A CATENA
Slide 31: The leading property company in logistics
The leading property company in logistics.