Klarabo Sverige Ab Class B · OMXSTO:KLARA_B
Klarabo Sverige Ab Class B — Q3 2024 Earnings Presentation
20 slides from Klarabo Sverige Ab Class B's earnings presentation, Nov 6, 2024
Slide 1: Q3 report
Q3 report 6 November 2024 KlaraBo property in Nybro 1
Slide 2: Today’s presenters
Today’s presenters Andreas Morfiadakis Per Holmqvist CEO and co-founder CFO 2
Slide 3: Snapshot
Snapshot 3
Slide 4: Continued organic growth
Continued organic growth • Financial development Q3 • Revenue increased 7% due to measures to raise standards and annual rent increase • Net operating income increased 7% +7% Revenue SEK 159 m • Income from property management increased 5% – despite +7% higher financial costs due to increase in aver
Slide 5: Portfolio and Business model
Portfolio and Business model 5
Slide 6: Fully occupied property portfolio
Fully occupied property portfolio Geographical presence and 6,694 97.5% SEK 1,136 administrative areas Real occupancy rate Average rent per sq.m and year, Apartments under management unrenovated portfolio SEK 18,098 88% 498,800 Market value per sq. m. Residential Sq.m lettable area housing North Cen
Slide 7: Rental value trend continues with stable occupancy rate
Rental value trend continues with stable occupancy rate • About 4,000 apartments, or 60% of total portfolio with renovation potential, excluding construction • Renovations only after tenants have moved out at their own initiative • Renovations increase property values and strengthens cash flow • Ren
Slide 8: Financials Q3
Financials Q3 8
Slide 9: Positive property values and continued compensation for cost inflation
Positive property values and continued compensation for cost inflation 2024 2023 2023 3 months 3 months 12 months Revenue SEK m Jul-Sep Jul-Sep Jan-Dec • Q3 revenue +7,4% YoY Revenue 158.8 147.8 589.7 • 7% increase in revenue, on a like-for-like basis, attributable mostly to Costs -54.8 -50.5 -252.5
Slide 10: Continued stable financial position
Continued stable financial position Investment properties • Average increase in exit yields of 2 bps throughout the investment properties • Negative effect of increased yields mitigated by positive value changes related to completed renovations and assumptions regarding future annual general rent in
Slide 11: 80 percent of loan portfolio at fixed interest rates
80 percent of loan portfolio at fixed interest rates Maturity structure – Fixed interest 2024-09-30 Maturity structure – Fixed credit 2024-09-30 • Interest-bearing liabilities related to investment properties of SEK 4,895.6 m • High predictability of the average interest rate and of the financial co
Slide 12: Current earnings capacity
Current earnings capacity • Rental revenue increased by SEK 33 m YoY • The annual financial costs have increased by SEK 3.7 m YOY • Interest-coverage ratio increased to 1.9 (1.8) • Since the previous quarter, income from property management has fallen by 3.5 percent, which is mainly explained by low
Slide 13: Summary
Summary 13
Slide 14: Current trading – intensified focus on acquisitions
Current trading – intensified focus on acquisitions • Upgrades and refurbishments continues (LTM 163) • Occupancy rate remains at a high and stable level – low market vacancy in rental apartments in Sweden in general • The slightly more positive market environment continues with expectations of lowe
Slide 15: Refinanced loans with attractive terms in October
Refinanced loans with attractive terms in October • Prematurely refinanced loans of approximately SEK 1.8 billion. Corresponds to approximately 35 percent of the total loan portfolio of SEK 4.9 billion • The new loans, with existing banks, runs for just over two and three years respectively, with an
Slide 16: Updated targets in connection with annual strategy review
Updated targets in connection with annual strategy review Financial targets • KlaraBo is to achieve average annual growth in net realizable value per share of at least 15 per cent including any value transfers over the course of a business cycle (unchanged) • KlaraBo is to achieve average annual gro
Slide 17: Updated targets in connection with annual strategy review
Updated targets in connection with annual strategy review Dividend policy • KlaraBo shall, over time, be a dividend-paying company but will, in the coming years, prioritize growth through investments in the existing portfolio, acquisitions, and the company's project (new) Sustainability targets Klar
Slide 18: KlaraBo investment highlights
KlaraBo investment highlights Over 60% of apartments in portfolio with renovation potential Continued high demand for rentals due to housing shortage, lower construction of new housing and lower disposable income +21% average annual growth in NRV since 2019 Growth potential via acquisitions and deve
Slide 19: Q&A
Q&A 19
Slide 20: Thank you!
Thank you! 20