Stendoerren Fastigheter Ab Class B · OMXSTO:STEF_B
Stendoerren Fastigheter Ab Class B — Stendörren Fastigheter — Q2 2024 Earnings Presentation
27 slides from Stendoerren Fastigheter Ab Class B's earnings presentation, 2024
Slide 1: Second Quarter 2024
SECOND QUARTER 2024 STENDÖRREN
Slide 2: Snapshot of Stendörren
SNAPSHOT OF STENDÖRREN SEGMENT (area) GEOGRAPHY (rental income) LIGHT INDUSTRY Warehouse and logistics, 48% Stockholm municipality, 30% LOGISTICS Light industrial, 21% Rest of Stockholm, 31% Office, 20% WAREHOUSE Retail, 10% Rest of Mälardalen, 31% Gothenburg region, 1% Other, 1% RESIDENTIAL BUILDIN
Slide 3: Stendörren History in Short
STENDÖRREN HISTORY IN SHORT PROPERTY VALUE 2024 PROPERTY VALUE 2023 PROPERTY 12.6 VALUE 2022 BN PROPERTY 12.6 BN PROPERTY VALUE 2021 12.4 151 BN PROPERTIES PROPERTY VALUE 2020 11.7 151 BN PROPERTIES VALUE 2019 9.5 148 PROPERTY VALUE 2018 8.9 BN 135 PROPERTIES 2024 PROPERTY VALUE 2017 8.4 BN 123 PROP
Slide 4: 4 Reasons to Invest in Stendörren
4 REASONS TO INVEST IN STENDÖRREN 1. 2. STABLE CASH FLOW SUSTAINABLE GROWTH • High yielding asset class • Growth locations - Greater Stockholm and Mälardalen region • Long leases • E-commerce as growth driver • Diversified tenant base • Rent levels increase in urban locations – increasing demand and
Slide 5: Operational Highlights
OPERATIONAL HIGHLIGHTS NOI DEVELOPMENT (MSEK) STRONG RENTAL INCOME AND NOI GROWTH CAGR: 13.3% 178 174 183 • Full effect from CPI-related rent increase 163 168 157 • 7% underlying NOI increase in the comparable portfolio 139 144 136 127 129 118 115 121 123 127 127 107 111 98 STRONG LETTING 93 • P
Slide 6: Financial Highlights
FINANCIAL HIGHLIGHTS EQUITY RATIO (%) REVALUATIONS STILL EFFECTS FINANCIAL KEY FIGURES NEGATIVELY 40 41 40 40 40 40 41 43 44 43 44 42 42 41 40 39 38 37 39 37 • LTM SEK -152m on property portfolio 35% 32 32 INTEREST-RATE RESILIANCE • Approx 85% of interest-bearing debt hedged with a “Stibor” 20%
Slide 7: Sustainability - Achievements
SUSTAINABILITY - ACHIEVEMENTS CLIMATE IMPACT KG CO2/SQ.M ENERGY INTENSITY KWH/SQ.M. DISTRIBUTION OF ENERGY SOURCES Renewables Non-renewables 4,50 32% 140 36% REDUCED CLIMATE IMPROVED ENERGY 4,00 IMPACT BETWEEN 2018- 2023 (KgCO2,e/sq.m) 130 EFFICIENCY PER SQ.M BETWEEN 2018-2023 2% 2% 3,50 120 4% 4% 5
Slide 8: Sustainability Strategy
SUSTAINABILITY STRATEGY OVERALL GOAL: NET ZERO CARBON EMISSIONS ACROSS OUR ENTIRE OPERATIONS BY 2040 -26% Reduction of energy intensity (kvh/kvm) as of 30 June, 2024, compared with base year 2020 64% Environmentally certified area out of total area, as of 30 June, 2024 8 Investor Presentation
Slide 9: Sustainability Offering
SUSTANABILITY OFFERING Energy performance Solar panels up to 80% below required level Concrete & asphalt Recycling of with reduced CO2 construction footprint material Particle cleaning Timber frame building envelope BREEAM Geothermal certification heating Charging stations Biodiversity 9 Investor Pr
Slide 10: Future Focus for Profitable Growth
FUTURE FOCUS FOR PROFITABLE GROWTH INCREASED GROWTH FOCUS FOLLOWING LEASE WITH THE SWEDISH FORTIFICATIONS AGENCY, NEW PROJECTS ADDED TO PIPELINE AND SECURED COST OF CAPITAL • Capitalise on embedded rental growth potential given the asset class in growing macro- / urban micro ASSET locations MANAGEME
Slide 11: Thank You!
STENDORREN THANK YOU!
Slide 12: Appendix
APPENDIX 12 Investor Presentation Picture: Almnäs Development Phase II
Slide 13: Introduction: Business Idea, Market, Financial Objectives
INTRODUCTION BUSINESS MARKET FINANCIAL IDEA OPPORTUNITY OBJECTIVES Stendörren creates profitable growth in net The properties are strategically located in • Return on equity of at least 12 % asset value by managing, developing and growth areas (population and economic), acquiring properties mainly i
Slide 14: 4 Reasons to Invest in Stendörren
4 REASONS TO INVEST IN STENDÖRREN 1. 2. STABLE CASH FLOW SUSTAINABLE GROWTH • High yielding logistics, warehouse and light • Properties strategically located in growth areas such as Greater industrial properties with long leases Stockholm and the Mälardalen region • Diversified tenant base of both w
Slide 15: 1. Stable Cash Flow
1. STABLE CASH FLOW DIVERSIFICATION WITH FOCUS ON GREATER STOCKHOLM PROPERTY PORTFOLIO OVERVIEW • Stendörren has a property portfolio of SEK 12,600m, with a property yield of 6.5%1 as per 30 June 2024 • Rental value2 of SEK 883 with an economic occupancy rate of 93% as per 30 June 2024 • Lease agree
Slide 16: 1. Stable Cash Flow – Continued
1. STABLE CASH FLOW – CONTINUED DIVERSIFIED TENANT BASE LARGEST TENANTS AS PER Q2 2024 LEASE MATURITY BY RENTAL INCOME Rental Rental area, Share of total Tenant income, th. sq.m. rental income SEKm 372 345 305 Coop Logistik AB 69 130 9% Åtta.45 Tryckeri AB 14 11 2% Mountain Top 12 9 2% 236 Stockholm
Slide 17: 2. Sustainable Growth
2. SUSTAINABLE GROWTH WHY FOCUS ON THE STOCKHOLM REGION? POPULATION STOCKHOLM REGION STOCKHOLM REGION 2022 – 2040 3 000 000 Forecasted CAGR of 0.77 % • The gross regional product in Stockholm per capita is ca 40% Forecasted population 2010 – 2021 growth of 19,900 higher than the national average 2 7
Slide 18: 3. Value Growth in Projects
3. VALUE GROWTH IN PROJECTS PROJECT PORTFOLIO WITH LARGE POTENTIAL Estimated building Estimated Possible Municipality Envisaged main use Status Zoning right sq. m.1 Construction Start 2 • Fully developed up to an Upplands-Bro Logistics 377 000 Within current zoning 2024-2025 additional 641,000 sqm c
Slide 19: 3. Value Growth in Projects – Continued
3. VALUE GROWTH IN PROJECTS – CONTINUED ONGOING AND COMPLETED PROJECTS Q2 2024 Estimated Estimated Size Property Description investment3 Current Phase completion1 sq. m.2 SEKm Filmremsan 2 Reconstruction Q3 2024 2 400 37 Construction started • Development projects Stenvreten 8:37 New logistics Q4 20
Slide 20: Case Study: Almnäs – Transforming an Area
CASE STUDY ALMNÄS – TRANSFORMING AN AREA Overview Work in progress – Partly old and partly new • Located in the coming logistics hub Stockholm Syd • Close to Södertälje and ca 45km south-west of central Stockholm. Positioned close to major, e.g. E20 and E4 • Acquired 2015 from Peab. The buildings hi
Slide 21: Case Studies: Stenvreten 8:37 Advania Dream House
3. VALUE GROWTH IN PROJECTS – CASE STUDIES STENVRETEN 8:37 – “ADVANIA DREAM HOUSE” Overview Renderings of completed building • Stendörren’s existing tenant Advania decided to significantly expand their Enköping premises during the fall of 2023 • Construction is ongoing of 9,500 sqm of state of the a
Slide 22: Residential Conversions
3. VALUE GROWTH IN PROJECTS – CONTINUED RESIDENTIAL CONVERSIONS TEGELBRUKET – TRAVERSEN - SKRUBBA - NYGÅRD • Identifying underutilized assets in urban locations with potential for residential development • The assets have been acquired as cash flow generating properties • As an example, the asset Te
Slide 23: 4. Finance: Highlights from Q2 Report
4. FINANCE HIGHLIGHTS FROM Q2 REPORT NET LETTING (MSEK) ECONOMIC OCCUPANCY (%) Excluding bankruptcy of second largest tenant Exploria 17 95 16 15 14 14 94 94 94 93 93 92 8 8 91 91 7 90 5 89 89 89 1 1 88 88 1 87 87 87 -2 -1 -2 -4 -4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 -11 2020 2021
Slide 24: 4. Finance: Financial Targets
4. FINANCE – CONTINUED FINANCIAL TARGETS ROE (%) NAV GROWTH (%) 37 35 26 26 29 22 25 20 22 18 16 17 18 15 14 15 13 12 12% 9 9 10 8 9 15% 11 11 10 9 9 7 7 5 1 1 -3 -6 -5 -5 -2 -1 -5 -8 -3 -4 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Slide 25: 4. Finance: Debt Funding
4. FINANCE – CONTINUED DEBT FUNDING DEBT FUNDING OVERVIEW LOAN MATURITY INTEREST FIXING SEKm SEKm 3 000 3 000 2 700 2 500 9% 2 500 2 500 2 164 1 773 1 900 15% 2 000 2 000 1 500 1 322 1 500 1 125 1 000 1 000 76% 500 500 36 9 0 0 0 0 0 Bank debt Sr Unsecured bond Hybrid bond • Total interest-bearing d
Slide 26: Key Equity Ratios and Ownership Overview
4. FINANCE – CONTINUED KEY EQUITY RATIOS AND OWNERSHIP OVERVIEW SEKm SEK/share 7 000 350 SHAREHOLDER % OF CAPITAL % OF VOTES STENDÖRREN REAL ESTATE AB 40,6% 58,0 6 000 300 ALTIRA AB 10,7% 14,8 SEB INVESTMENT MANAGEMENT 13,1% 7,3 5 000 250 LÄNSFÖRSÄKRINGAR FASTIGHETSFOND 9,1% 5,1 TREDJE AP-FONDEN 3,3
Slide 27: Assessed Earnings Capacity as of July 2024
4. FINANCE – CONTINUED ASSESSED EARNINGS CAPACITY AS OF 1 JULY 2024 • According to the company’s assessment, the total rental income (after deductions for vacancies and Assessed earnings capacity discounts) on a rolling 12-month basis amounts to Rental Income 883 approximately SEK 883 million. Total
Stendörren Fastigheter — Q2 2024 Earnings Presentation on 6ix