Wihlborgs Fastigheter Ab · OMXSTO:WIHL
Wihlborgs Fastigheter Ab — Q3 2024 Earnings Presentation
51 slides from Wihlborgs Fastigheter Ab's earnings presentation, Oct 24, 2024
Slide 1: Quarterly report January - September 2024
Quarterly report January - September 2024 Ulrika Hallengren, CEO and Arvid Liepe, CFO 24 October 2024
Slide 2: Summary Q3 2024
• Summary Q3 2024 • Record rental income of SEK 1,043 m in the quarter • Net letting positive and record gross letting for a third quarter • Demand remains for good quality in good locations • Higher financing costs but ICR at 2.5 times, average interest rate declining quarter-on-quarter • Project i
Slide 3: Results Jan-Sep 2024
Results Jan-Sep 2024 • Rental income increased by 7% to SEK 3,115 million (2,912) • Operating surplus increased by 7% to SEK 2,244 million (2,104) • Income from property management amounted to SEK 1,329 million (1,381) • Result for the period amounted to SEK 846 million (323), corresponding to earni
Slide 4: Rental income development
Rental income development Rental income Jan-Sep 2023, SEKm 2,912 Index 137 Termination fees 31 Acquisitions 9 Property tax, Denmark 10 Currency effect -5 Additional charges -4 Canteens -8 Completed projects, new leases and renegotiations etc. 33 Rental income Jan-Sep 2024 3,115 4
Slide 5: Net letting
Net letting Q3 Q3 Jan-Sep Jan-Sep SEKm 2024 2023 2024 2023 New leases 96 62 367 216 Terminations -69 -47 -289 -181 Net letting 28 15 78 35 5
Slide 6: New leases Q3 2024 – a selection
New leases Q3 2024 – a selection 6
Slide 7: Net letting quarterly
Net letting quarterly 150 100 50 0 -50 -100 -150 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 New leases Terminations Net 7
Slide 8: Solid customers
Solid customers 19% City of Helsingborg City of Malmö Revenues from Danish Building and Property top ten tenants Agency Lund University 23% Malmö University Revenues from Novo Nordisk public tenants SAAB Skåne Regional Council Swedish Social Insurance Agency Trygg Hansa Insurance 8
Slide 9: Rental growth
Rental growth Rental Rubrikgrowthupp entire property stock till 2 rader like-for-like* 01-10-2024 01-10-2023 01-10-2024 01-10-2023 SEK m SEK m Percent SEK m SEK m Percent Rental value 4,562 4,272 +6.8 Rental value 3,490 3,290 +6.1 Rental income 4,186 3,920 +6.8 Rental income 3,223 3,048 +5.7 *Exclud
Slide 10: Changes in market value properties
Changes in market value properties SEK m Carrying amount 1 January 2024 55,872 Acquisitions 201 Investments 1,538 Properties sold -5 Changes in value 71 Currency translations 221 Carrying amount 30 September 2024 57,898 10
Slide 11: Increased value in the portfolio
Increased value in the portfolio 60 000 50 000 40 000 30 000 SEK m 20 000 10 000 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Q3 11
Slide 12: Portfolio – the entire property stock
Portfolio – the entire property stock 1 October, 2024 Market value Op. Surplus* Occupancy Running Running yield SEK m SEK m rate, % yield, % fully let, % Total excl. 54,857 3,173 93 5.8 6.4 projects and land Total Wihlborgs 57,898 3,187 92 5.5 6.2 * Excluding property admin 12
Slide 13: Portfolio – Office properties
Portfolio – Office properties 1 October, 2024 Market value Op. Surplus* Occupancy rate, Running Running yield SEK m SEK m % yield, % fully let, % Malmö 19,267 1,065 96 5.5 5.8 Helsingborg 8,235 471 90 5.7 6.5 Lund 8,659 514 91 5.9 6.7 Copenhagen 10,705 597 94 5.6 6.1 Total 46,866 2,648 93 5.7 6.2 *
Slide 14: Portfolio – Logistics/Production
Portfolio – Logistics/Production 1 October, 2024 Market value Op. Surplus* Occupancy Running Running yield SEK m SEK m rate, % yield, % fully let, % Malmö 2,171 141 94 6.5 7.0 Helsingborg 4,479 299 87 6.7 8.0 Lund 453 29 99 6.4 6.4 Copenhagen 888 56 98 6.3 6.5 Total 7,991 525 90 6.6 7.5 * Excluding
Slide 15: Portfolio running yield, excl. property admin
Portfolio running yield, excl. property admin. 6,5 6,3 6,3 6,2 6,1 5,9 5,8 5,8 5,8 5,7 5,7 Percent 5,5 5,4 5,4 5,4 5,3 5,3 5,1 5,1 5,1 4,9 4,7 4,5 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Q3 Excl. project and land 15
Slide 16: Sustainability results Q3
Sustainability results Q3 Target Environmental certifications (% of floor area, office, Sw) Target Evaluation of suppliers (% approved) 90 2025: 100 2025: 80 90 90 100 70 80 70 60 60 50 50 40 40 30 30 20 20 10 10 0 0 CO2 emissions (kg/sqm, scope 1 & 2) Energy use (kWh/sqm) 1,6 120 1,4 100 Target 1,2
Slide 17: Sustainability highlights Q3
• Q2 Sustainability highlights Q3 • Now first place globally in GRESB – diversified listed property companies (office/industrial) • Sustainability-linked loan • Social roadmap • One of Skåne’s best workplaces • Host to the conference A Sustainable Tomorrow 17
Slide 18: Customer Satisfaction Index/Great Place to Work
Customer Satisfaction Index/Great Place to Work 90 90 90 87 86 85 80 80 77 77 75 75 70 2020 2022 2023 2024 Customer Satisfaction Index GPTW 18
Slide 19: Malmö Helsingborg Lund Copenhagen
Malmö Helsingborg Lund Copenhagen 40 % of property value 22 % of property value 16 % of property value 22 % of property value 634,000 m2 696,000 m2 279,000 m2 708,000 m2 104 properties 106 properties 34 properties 63 properties 22,989 SEK m property value 12,908 SEK m property value 9,374 SEK m prop
Slide 20: Copenhagen airport strengthens its position
Copenhagen airport strengthens its position • Scandinavian hub for SAS o Expands with 15 destinations (Krakow, Madrid, Budapest, Lyon, Valencia, Malta, Bucharest, Milan Linate, Seville, Turku, Billund, Kristiansand, Harstad/Narvik, Bodø o Frequency increase on 15 of the existing lines • Record no. o
Slide 21: Employment growth, Nordea Regional Outlook
Employment growth, Nordea Regional Outlook 112,0 110,0 108,0 106,0 104,0 102,0 100,0 98,0 96,0 94,0 92,0 90,0 2020 2021 2022 2023 2024e 2025e South Sweden West Sweden Småland and the islands Stockholm East Middle Sweden North Middle Sweden Middle Norrland Upper Norrland 21
Slide 22: Financials
Eg F i n a necia l S
Slide 23: Income statement
Income statement SEK m Q3 2024 Q3 2023 Rental income 1,043 977 +7% Operating surplus 762 715 +7% Income property management 445 433 +3% Change in value of properties 102 -828 Change in value of derivatives -335 11 Pre-tax profit 212 -384 Profit for the period 148 -302 23
Slide 24: Consolidated balance sheet
Consolidated balance sheet, SEK m 30-09-2024 30-09-2023 Investment properties 57,898 56,036 Right-of-use assets 136 137 Other fixed assets 449 433 Derivatives 205 657 Current receivables 286 313 Liquid assets 266 162 Total assets 59,240 57,738 Equity 22,282 22,771 Deferred tax liability 5,427 5,264
Slide 25: Key figures
Key figures 30-09-2024 30-09-2023 Equity/assets ratio, percent 37.6 39.4 Leverage properties, percent 51.2 50.5 Interest coverage ratio, multiple 2.5 3.0 Per share, SEK EPRA net disposal value 72.48 74.07 EPRA net reinstatement value 90.47 89.07 Earnings per share 2.75 1.05 EPRA EPS 3.95 4.19 25
Slide 26: EPRA NRV
EPRA NRV Average annual growth: 15 percent adjusted for dividend Per share 100 90 80 70 60 SEK 50 40 30 20 10 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Q3 26
Slide 27: Stable financial position
Stable financial position Financial targets Equity/Assets % 45,0 • Max. loan-to-value 60% 40,0 • Min. equity/assets 30% 35,0 • Min. interest coverage 2.0 multiple 30,0 25,0 Interest cover ratio, rolling 12 months 8,0 7,0 Loan-to-value % 6,0 65,0 5,0 60,0 4,0 55,0 3,0 50,0 2,0 1,0 45,0 0,0 40,0 jul-1
Slide 28: Strong earnings relative to borrowings
Strong earnings relative to borrowings Net debt/EBITDA 12,0 10,0 8,0 Multiple 6,0 4,0 2,0 0,0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Q3 28
Slide 29: Current financing, Sep 2024
Current financing, Sep 2024 Total debt: SEK 29.6 bn 10% 53% 37% Bank loans Danish mortgage loans Bonds 29
Slide 30: Structure of interest and loan maturities
Structure of interest and loan maturities Interest maturity Loan maturity Loan amount Average Credit agreement Utilised Matures year SEK m interest rate % SEK m SEK m 2024 13,472 4.65 1,750 1,050 2025 1,788 1.58 902 902 2026 2,102 2.66 11,050 10,189 2027 2,261 3.66 8,576 7,726 2028 2,661 3.71 621 62
Slide 31: Interest rate sensitivity
Interest rate sensitivity % The underlying rate can increase by 2.5 percentage points 7,00 from the level end June and the ICR would still be at our Average interest rate, % 6,00 target level of 2.0 times. 5,00 4,00 3,00 2,00 1,00 The underlying rate can increase by 5.0 percentage points 0,00 from t
Slide 32: Fixed interest period and loan maturity
Fixed interest period and loan maturity Fixed interest period, years Loan maturity, years 7 7 6 6 5 5 4 4 3 3 2 2 1 1 0 0 dec-19 jun-20 dec-20 jun-21 dec-21 jun-22 dec-22 jun-23 dec-23 jun-24 dec-19 jun-20 dec-20 jun-21 dec-21 jun-22 dec-22 jun-23 dec-23 jun-24 32
Slide 33: Available funds
Available funds Unutilized credit facilities plus liquid funds, SEK mn 4 500 4 000 3 500 3 000 2 500 2 000 1 500 1 000 500 - Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024
Slide 34: Investments in progress
Investments in progress 34
Slide 35: Projects investments
Projects investments September 2024 SEK m Investments 1,538 Projects in progress 4,683 Invested by period end -1,499 Remains to invest 3,184 35
Slide 36: Vätet 1
Vätet 1 Lund, Ideon Completion Q1 2026 Arm 5,700 m2 SEK 136 m 36
Slide 37: Galoppen 1
Galoppen 1 Fosie, Malmö Completion Q3 2025 Caldic 10,000 m2 SEK 264 m 37
Slide 38: Dockan
Dockan Dockan, Malmö Completion Q3 2025 Malmö University 4,900 m2 SEK 106 m 38
Slide 39: Börshuset 1
Börshuset 1 Malmö, City Completion Q4, 2025 6 000 m2 SEK 289 m 39
Slide 40: Bläckhornet 1 - VISTA
Bläckhornet 1 - VISTA Hyllie, Malmö Completion Q4 2024 / Q1 2026 15,000 m2 mobility hub SEK 884 m 16,600 m2 office 40
Slide 41: Posthornet 1, phase 2
Posthornet 1, phase 2 Lund, City Completion Q1, 2026 10,100 m2 SEK 448 m 41
Slide 42: Christianhusvej 11
Christianhusvej 11 Copenhagen, Hörsholm Completion Q4, 2025 NGG 11 600 m2 SEK 390 m 42
Slide 43: Sunnanå 12:54
Sunnanå 12:54 Malmö Completion Q3, 2025 17,000 m2 SEK 302 m 43
Slide 44: Bilrutan 5
Bilrutan 5 Landskrona Completion Q4, 2024 Dachser 9,600 m2 SEK 159 m 44
Slide 45: Future projects
Future projects 45
Slide 46: Amphitrite
Amphitrite University of Malmö 46
Slide 47: Science Village, Spektra, Ideontorget, Zenit, Polisen 7
• Vetskapen 1 Science Village, Spektra Ideontorget, Zenit Polisen 7 Västerbro Lund Lund, Ideon Helsingborg Lund 4,700 m2 GFA 16,000 m2 GFA 6,000 m2 GFA 70,000 m2 GFA TBD TBD TBD TBD TBD TBD TBD TBD 47
Slide 48: Hamnen 16:xx - Smörkajen, Kranen 15
• Hamnen 16:xx- Smörkajen Hamnen 16:xx- Smörkajen Kranen 15 Dockan Naboland 3 Malmö, Nyhamnen Malmö, Dockan Malmö, Dockan Malmö, Dockan 13,000 m2 GFA TBD 13,000 m2 GFA 8,000 m2 GFA TBD TBD TBD TBD Miljöbyggnad Guld Miljöbyggnad Guld Miljöbyggnad Guld Miljöbyggnad Guld 48
Slide 49: Summary Q3 2024
• Summary Q3 2024 • Record rental income of SEK 1,043 m in the quarter • Net letting positive and record gross letting for a third quarter • Demand remains for good quality in good locations • Higher financing costs but ICR at 2.5 times, average interest rate declining quarter-on-quarter • Project i
Slide 50: mSEK new leases, 12 months
mSEK new leases, 12 months 50
Slide 51: UIAPAAR
UIAPAAR HAN aM
Wihlborgs Fastigheter — Q3 2024 Earnings Presentation on 6ix