Catena Ab · OMXSTO:CATE
Catena Ab — Q1 2023 Earnings Presentation
27 slides from Catena Ab's earnings presentation, April 2023
Slide 1: The leading property company in logistics
Q1 2023 Presentation April 2023 The leading property company in logistics 1
Slide 2: Q1 2023 Presentation
Q1 2023 Presentation April 2023 Q1 2023 Presentation Jörgen Eriksson, CEO Sofie Bennsten, CFO David Silvesjö, Chief Treasury Officer 2
Slide 3: Agenda
Q1 2023 Presentation April 2023 Agenda 1. Summary of latest quarter 2. Business overview 3. Business update 4. Financial update 5. Takeaway from today 6. Q&A 3
Slide 4: Q1 2023 summary: Attractive opportunities ahead, despite prevalent uncertainties
Q1 2023 Presentation April 2023 Q1 2023 summary: Attractive opportunities ahead, despite prevalent uncertainties • Rental income increased due to indexation and Profit from Property Management acquisitions SEK M 954 824 • Keeping our word 719 627 571 +22% • Transaction of ICA properties completed •
Slide 5: Business overview
Q1 2023 Presentation April 2023 2. Business overview Sector-leading portfolio and prime customer base 5
Slide 6: Business overview: Market update
Q1 2023 Presentation April 2023 Business overview Market update • Trying macro environment, strong players stand out • Swedish e-commerce sales down 7% during 2022 • Small package volume increased by 7% • Market leading 3PL players in DHL, Postnord and challengers such as Nowaste advancing their pos
Slide 7: Business overview: Portfolio
Q1 2023 Presentation April 2023 Business overview Portfolio Regions Number of Lettable Fair Value, Rental Economic Contractual Surplus properties area, Tsqm SEK M value, SEK letting ratio, annual rent, ratio, %2 M % SEK M1 Göteborg 21 366 4,815 306 98 301 87 Helsingborg 26 501 5,033 354 98 346 76 Jö
Slide 8: Business overview: Customer base
Q1 2023 Presentation April 2023 Business overview Customer base Customers Share of contractual value Customer segments Logistics and transport DHL 11% 6% Food and beverage ICA 8% 2% 2% Durable goods Martin &Servera 6% 3% Postnord 6% 4% Construction and furnishing Boozt 3% 40% 3% Healthcare Nowaste L
Slide 9: Business update
Q1 2023 Presentation April 2023 3 Business update Attractive growth enabled by our long-standing customer relationships, unique landbank and strong financial position 9
Slide 10: Business update: Energy
Q1 2023 Presentation April 2023 Business update Energy MAJOR OPPORTUNTIES WITHIN ENERGY • Catena has identified investments of 500 SEK M in battery and solar panel installations • Made possible by our large roof surfaces and land area • High combined Internal Rate of Return (”IRR”) in the low double
Slide 11: Business update: Current development
Q1 2023 Presentation April 2023 Business update Current development Part of Dansered 1:64, Härryda Stenvreten 8:33, Enköping Tenant: Menigo, MM-Sport Tenant: Coop Investment: 1 056 SEK M Investment: 124 SEK M Sqm: 84 060 Sqm: 5 800 Finalized: Q3 2024 Finalized: Q1 2024 Norra Varalöv 31:11, Ängelholm
Slide 12: Growing with our customers
Q1 2023 Presentation April 2023 CASE Growing with our customers Property: Stigamo 1:49, Jönköping Tentant: Nowaste Logistics Expected GLA (sqm): 33 000 sqm Exp. Investment: 379 SEK M including land acquisition Certification: BREEAM Excellent 12 Finalized: Q3 2024 Catenas CEO Jörgen Eriksson (left) a
Slide 13: Business update: Future development
Q1 2023 Presentation April 2023 Business update Future development E-City Engelholm Örebro South (JV, 51%) Ängelholm Törsjö 490 000 sqm land 920 000 sqm land Pending zoning plan Pending zoning plan Logistics position Söderåsen Stockholm South Bjuv Nykvarn/Södertälje 566 000 sqm land 450 000 sqm land
Slide 14: Business update: Leasing update
Q1 2023 Presentation April 2023 Business update Leasing update Net leasing Maturity profile – WALE development Letting ratio contractual annual rent SEK M 45% 5,5 5,5 150 100,0% 40% 5,4 100 35% 99,0% 30% 50 98,0% 97,5% 25% 5,1 0 20% 5 97,0% 15% 4,9 -50 96,0% 10% -100 5% 95,0% 2018 2019 2020 2021 202
Slide 15: Business update: Sustainability
Q1 2023 Presentation April 2023 Business update Sustainability Sustainability targets Q1 2023 2022 2021 Trend CONTINUED PROGRESS TOWARDS 2030 TARG TES Net-zero greenhouse gas emissions by 2023 • 31 percent of lettable area is environmentally -Scope 1-2 (location based) 875 2,814 2,632 certified -Sco
Slide 16: Financial update
Q1 2023 Presentation April 2023 4. Financial update Strong cashflows and balance sheet provides flexibility and opportunity 16
Slide 17: Financial update: Income
Q1 2023 Presentation April 2023 Financial update Income Rental Income Net Operating Surplus Profit from Property Management SEK M SEK M SEK M +18% +22% +22% 1 544 1 220 1 387 1 095 954 1 264 1 004 1 183 824 903 1 091 828 719 892 627 671 571 440 446 359 278 377 295 227 2017 2018 2019 2020 2021 2022 Q
Slide 18: Financial update: Rental development
Q1 2023 Presentation April 2023 Financial update Rental development • Strong LFL driven by CPI increase 2022 YoY • Vanda and Fröträdet main drivers within divestments Like-for-like1 11,5 % • The acquisitions of Halmslätten and DKI assets main reason for positive effect Project development 3,2 % Acqu
Slide 19: Financial update: Capital structure management
Q1 2023 Presentation April 2023 Financial update Capital structure management WELL POSITIONED TO NAVIG ATE MARKET CONDITIONS SEK M • During the quarter, financial markets have been 35 000 60% surrounded by higher uncertainty and overall 30 000 50% tighter credit conditions 25 000 40% • Strategically
Slide 20: Financial update: Financial position
Q1 2023 Presentation April 2023 Financial update Financial position 12 6 10 5 STRATEGY SUPPORTED BY OUR FINANCI AL METRICS 8 4 6 3 • Strong operations mitigating the new interest 4 2 environment 2 1 • Avg. cost of debt increased to 3.4% (3.0% Q4 2022) 0 0 2018 2019 2020 2021 2022 2023 Q1 • ICR of 4.
Slide 21: Financial update: Debt and money management
Q1 2023 Presentation April 2023 Financial update Debt and money management SEK M 3 500 Debt maturity 3 000 CATENA HAS BUILT A RESILIENT FINANCI AL POSITION 2 500 Debt management 2 000 • Low LTV and strong cash holding enables 1 500 development momentum 1 000 500 • 12-months of debt maturities safely
Slide 22: Financial update: Interest sensitivity
Q1 2023 Presentation April 2023 Financial update Interest sensitivity SEK M HEDGING RATES COMPLIES WITH OUR LONG TERM VIEW 4 500 Interest maturity profile 4 000 • Significant hedge against rising interest rates 3 500 3 000 • 67% hedge ratio, including fixed interest 2 500 loans and swaps with total
Slide 23: Financial update: Capital deployment
Q1 2023 Presentation April 2023 Financial update Capital deployment 1,017 Acquisitions (SEK M) Transactions 4 500,0 4 000,0 3 500,0 3 000,0 2 500,0 -9 Divestments (SEK M) 2 000,0 1 500,0 1 000,0 500,0 0,0 2018 2019 2020 2021 2022 Q1 2023 - 500,0 Development CAPEX Capex Acquisition CAPEX (net) Develo
Slide 24: Financial update: Property valuation
Q1 2023 Presentation April 2023 Financial update Property valuation 5.2% EPRA NIY HIGHER YIELDS MITIGATED BY HIGHER RENT LEVELS • Value changes Q1 2023 35 000 7,0% • - 710 SEK M of unrealized value change 30 000 6,0% • 2,5% in total write down of portfolio 25 000 5,0% • Average weighted valuation yi
Slide 25: Takeaway from today
Q1 2023 Presentation April 2023 5. Takeaway from today 25
Slide 26: Takeaway from today
Q1 2023 Presentation April 2023 Takeaway 1. Attractive opportunities ahead, despite prevalent from today uncertainties 2. Maintaining a resilient financial profile driven by strong cash flows, liquidity and low LTV. 26
Slide 27: Q&A
Q1 2023 Presentation April 2023 Q&A Jörgen Eriksson, CEO Sofie Bennsten, CFO David Silvesjö, Chief Treasury Officer 27