Cibus Real Estate Ab (publ) · OMXSTO:CIBUS
Cibus Real Estate Ab (publ) — Cibus Nordic Real Estate — Q2 2024 Earnings Presentation
30 slides from Cibus Real Estate Ab (publ)'s earnings presentation, Jul 17, 2024
Slide 1: Interim Report
Interim Report 1 januari 2024 – 30 juni 2024
Slide 2: Speakers
Speakers Christian Fredrixon Pia-Lena Olofsson Chief Executive Officer Chief Financial Officer 2
Slide 3: Summary of the period Q2 2024
Summary of the period Rental income amounted to EUR 30,447 thousand (29,633). Q2 2024 Net operating income totalled EUR 30,457 thousand (28,050). Profit from property management was EUR 10,324 thousand (11,543). Profit from property management, excluding non-recurring (compared items and exchange ra
Slide 4: Cibus
Cibus Converting food into yield
Slide 5: This is Cibus Nordic
This is Cibus Nordic — “Converting Food into Yield” — Real estate company focused purely on daily-goods properties. — Aim to create stable cash flows. — Listed since March 2018. Listed on Nasdaq Stockholm MidCap since June 2021. — Sole listed pure daily-goods real estate vehicle in the Nordics. — Gr
Slide 6: Pan-Nordic expansion timeline
Pan-Nordic expansion timeline Q2 2024 Property value 1,768 MEUR Q1 2018 Property value 735 MEUR 2018 2019 2020 2021 2022 2023 2024 3/2018 Establishment 3/2020 Entry to 10/2021 Entry 4/2022 Entry and IPO Sweden to Norway to Denmark 6
Slide 7: Our properties Q2 2024
Our properties Q2 2024 455 1,768 Tenants share of NOI Properties MEUR property value 114.7 984 MEUR NOI Thousand SQM Current earnings capacity 7
Slide 8: Six new properties acquired during Q2 in Sweden
Six new properties acquired during Q2 in Sweden — 6 grocery stores in Värmland — 88% daily-goods — 87,5 MSEK (approx. 7.6MEUR) — 8,900 sqm, 9,830 SEK/sqm — ICA store with low OCR — 5 assets let to Pekås (Coop Bengtsfors, Bagaren 7&8 Kil, Svärdet 7 Hagfors, Grinnemo 1:288 Värmland) Not taken possessi
Slide 9: What do we mean by stable cash flows?
What do we mean by stable cash flows? Stable cash flows: — Focused purely on daily-goods properties. — Non-cyclical daily-goods business. — 84% of rental income is from daily-goods tenants. — 97% of our 455 properties are anchored by daily-goods tenants. — 99% of rents linked to CPI-development. Sta
Slide 10: Earnings capacity in focus
Earnings capacity in focus — Cibus has historically delivered value to shareholders through dividend yields, EPS growth and total returns. — Historic operational stability and historic noticeable yield spread. Earnings capacity and Dividend per share — Main growth driver 2024 is increasing earnings
Slide 11: Cibus share price performance
Cibus share price performance 30 June 2024: Average daily volume total SEK 60 million of which Nasdaq daily volume is SEK 29 million with about 2,400 transactions per day Share price SEK 157,80 11
Slide 12: Shareholders as of 30th of June 2024
Shareholders as of 30th of June 2024 Cibus Nordic Real Estate Name No. of shares Percentage Länsförsäkringar Fonder 4,470,601 7.8 Fjärde AP-fonden 3,545,689 6.2 Vanguard 2,466,842 4.3 Avanza Pension 2,321,598 4.0 Nordnet Pensionsförsäkring 1,807,488 3.2 30 June 2024: BlackRock 1,798,303 3.1 Clearanc
Slide 13: Financial Overview
Slide 14: Significant events during the quarter
Significant events during the quarter At the Annual General Meeting on 15 April 2024, Patrick Gylling On 29 May, Cibus announced its intention to exercise its right was re-elected Chairman of the Board and Elisabeth Norman, to prematurely redeem its senior unsecured green bonds Victoria Skoglund, Ni
Slide 15: Q2 2024 in brief
Q2 2024 in brief EUR THOUSAND Q2 2024 Q2 2023 Jan-June 2024 Jan-June 2023 Rental income 30,447 29,633 60,966 59,300 Net operating income 30,457 28,050 58,571 55,650 Net financial items -16,670 1) -14,395 -30,087 -28,009 Profit from property 10,324 2) 11,543 22,553 23,334 management 1) Interest cost
Slide 16: P&L Highlights Q2 2024
P&L Highlights Q2 2024 — During the second quarter, service income also included non- EUR, Thousands Q2 2024 Q2 2023 recurring insurance compensation of EUR 1,816 thousand for fire damaged to a property in Finland. The property was subsequently Net Operating income 30,457 28,050 sold in the second q
Slide 17: Current earnings capacity
Current earnings capacity As of 1 July 2024, the earnings capacity regarding profit from property management excl non-cash items + expenses for hybrid bond per share for the ensuing 12 months was 0.97 EUR per share, an increased with 0.01 EUR per share since last quarter. 17
Slide 18: Net operating income in a comparable portfolio (Earnings capacity)
Net operating income in a comparable portfolio (Earnings capacity) The effect of indexation and other rent increases amounted to 4.4% annually. Indexation increases going forward will increase NOI and cash flow while financial expenses are 97% capped. 18
Slide 19: Segments Q2 2024
Segments Q2 2024 NOI Q2 2024 70% 13% 4% 13% 19
Slide 20: Cibus' strategy is to give its Shareholders strong dividends on a monthly basis
Cibus’ strategy is to give its Shareholders strong dividends on a monthly basis 6.5% Upcoming payments Dividend yield share price* * Based on 0.90 EUR per share and share price 157.80 SEK The 2024 Annual General Meeting decided that an unchanged dividend of EUR 0.90 (0.90) per share be paid, divided
Slide 21: Balance sheet (NRV & LTV)
Balance sheet (NRV & LTV) €’m Balance sheet (30 June 2024) (unless otherwise LTV, % stated) Property value 1,768 Secured debt (-) -889 50.3 Unsecured bond (-) (1) -241 Net LTV 58.9% Other net assets(+)/liabilities(-)(2) 68 Hybrid bond -30 EPRA NRV 676 EPRA NRV / Share (€) 11.8 1) As of 30 June 2024,
Slide 22: WAULT likely to be sustained around 5 years
WAULT likely to be WAULT 5.0 years sustained around 5 years — An even number of leases up for renewal each year — Typically leases renew at same terms for 5 years — WAULT likely to remain at around 5 years over time 22
Slide 23: Funding
Funding Bank loan Funding sources 76.6% of Cibus’s external funding sources comprise of bank loans. As of 30 June 2024, the Group has bank loans of EUR 888,662 thousand with a weighted average floating credit margin of 1.6% and an average weighted capital maturity of 1.5 years. All current bank loan
Slide 24: Funding
Funding Interest rate sensitivity analysis Based on reported earnings capacity and taking into account existing loans maturing at fixed interest, as well as other interest-rate hedges, the effect on profit when market interest rates rise by about 1 percentage point is roughly EUR -545 thousand on an
Slide 25: Key credit metrics
Key credit metrics Net LTV ratio (%) Interest coverage ratio (x) 65% 4,0 3,4 3,5 97% hedged as of Q4 2023 63% 61,3 % 3,3 3,5 3,1 until mid-2025 61% 59,1 % 58,7 % 58,7 % 58,9 % 3,0 59% 57,8 % 57,5 % 2,4 57% 2,5 2,2 2,2 2,2 55% 2,0 2019 2020 2021 2022 2023 2024 2024 2019 2020 2021 2022 2023 2023 2024
Slide 26: Future
Slide 27: Outlook
Outlook Earnings capacity started to grow in the second half of 2023 and Cibus’ strategy is to continue this development CPI outlook figures look to support continued growth in rental income through indexation Stable development in daily-goods business and several new retail growth initiatives could
Slide 28: Outlook ESG – Focus on E and S
Outlook ESG – Focus on ”E” and ”S” — Cibus has recently completed its double materiality analysis and aims to include ESRS reporting in the 2024 Sustainability Report. — Green framework and Sustainability linked framework in place under 2023. Three bonds during 2024 issued under the green framework.
Slide 29: Focus areas going forward
Focus areas going forward Stability and EPS ESG • Grow earnings capacity per share • Social infrastructure as part of a resilient society • Continued stable cash flows and dividend paying capacity • Daily-goods as a meeting place • CEPS accretive potential • Energy efficiency transactions • Climate
Slide 30: Primary reasons to invest in the Cibus share
Primary reasons to invest in the Cibus share 1 3 High and stable yield Monthly dividends Cibus strives to earn a high and stable yield for Since October 2020, Cibus pays dividends monthly shareholders. 2 4 Potential for favourable value growth A segment with long-term resilience and 99% of Cibus’ re
Cibus Nordic Real Estate — Q2 2024 Earnings Presentation on 6ix