Castellum Ab · OMXSTO:CAST
Castellum Ab — Q4 2023 Earnings Presentation
21 slides from Castellum Ab's earnings presentation, Feb 14, 2024
Slide 1: Year-end report 2023 Q4
Year-end report 2023 Q4
Slide 2: Summary January-December 2023
Summary January-December 2023 Income NOI Income from property Changes in property management values +9.8% +12.5% -3.0% - 9.5 % SEK 9,806 M SEK 6,566 M SEK 4,373 M SEK -14,534 M Net leasing Total contract value Economy occupancy Property sales rate SEK -67 M SEK 9,243 M 92.1% SEK 5,206 M 2 CASTELLUM
Slide 3: Castellum in brief
Castellum in brief ▪ One of the largest listed property companies in the Nordic region ▪ Property value SEK 160 Bn* Helsinki – of which 73% in metropolitan areas ▪ 5.5 million sq. m. lettable area Oslo Stockholm ▪ 50% of sq. m. sustainability-certified properties ▪ Yearly contract value approximatel
Slide 4: Development of operating income
Development of operating income 2023 2022 Change, Increase in NOI, SEK M Development of income, SEK M Jan-Dec Jan-Dec % Like-for-like holdings 8,596 7,895 8.9% Development properties 782 408 Like-for-like holdings 563 Transactions 241 461 Group adjustment 187 164 Total income 9,806 8,928 9.8% Develo
Slide 5: Castellum's tenants
Castellum’s tenants Contract value, Largest tenants SEK M S&P rating 1 A selection of tenants in our Contract value from public The Swedish Police Authority 212 AAA well-diversified customer sector tenants AFRY 177 Not rated base ABB 147 A- The Swedish National Courts Administration 145 AAA Svenska
Slide 6: Increased rental income despite volatile net quarterly leasing
Increased rental income despite volatile net quarterly leasing Rental income 2018-2023, SEK M Net leasing 2018- 2023, SEK M 12,000 120 100 10,000 80 8,000 60 40 6,000 20 4,000 0 -20 2,000 -40 , -60 2018 2019 2020 2021 2022 2023 Rental income, rolling annual value Net leasing, quarterly value 6 CASTE
Slide 7: Changes in property values
Changes in property values SEK M Property portfolio on 1 January 2023 153,563 Acquisitions 336 New constructions, extensions and reconstructions 3,410 Divestments -5,415 Changes in value - Cash flow -2,936 Changes in value - Project gains/Building rights -920 Changes in value - Required yield -10,46
Slide 8: Property values
Property values SEK Bn Per cent 55 8 50 7 45 6 40 5 35 30 4 25 3 20 2 15 1 10 5 0 0 -1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2010 2011 2012 2013 2014 2015 2016 2017 2018
Slide 9: Highlights – financing Q4 (Q4 2022)
Highlights – financing Q4 (Q4 2022) LTV ICR Average effective rate Credit rating 37.4% 3.0 3.0% Baa3 Stable (42.3) (3.9) (2.6) Outlook Average debt maturity Average fixed Hedge ratio (>1Y) Interest-bearing excl. RCFs interest rate liabilities 4.2 years 3.3 years 73% SEK 61,671 M (3.3) (2.7) (57) (76
Slide 10: LTV walk
LTV walk Per cent LTV on 1 January 2023 42,3 Unrealised changes in property values 3,7 Investments in existing properties 1,1 Net property transactions -1,3 Dividend 0,5 Cash flow from operations -3,0 Rights issue -5,6 Other -0,3 LTV on 31 December 2023 37,4 10 CASTELLUM 14/2/2024 YEAR-END REPORT 20
Slide 11: Financing
Financing Average cost of debt Bank exposure (incl. RCFs), % Instrument Amount, SEK M Average interest, % Bank loans 25,102 5.6 Bonds 35,782 3.1 2%2% 4% Commercial paper 787 5.2 6% 20% Interest rate swaps -1.41 Cross currency interest rate swaps 0.41 8% Outstanding debt 61,671 3.0 Unutilised credit
Slide 12: Debt maturity structure
Debt maturity structure SEK M SEK 27.3 Bn in cash and 14,000 unutilised credit 11,680 facilities 12,000 10,000 9,209 8,523 8,035 8,000 6,000 5,424 4,537 4,530 4,000 3,347 2,698 2,591 2,000 1,096 0, 2024 2025 2026 2027 2028 >2028 Bonds & Commercial papers Bank loans 12 CASTELLUM 14/2/2024 YEAR-END RE
Slide 13: SEK 326 M rental value completed projects 2023
Godsfinkan 1, Malmö Rental value completed projects 2023 SEK 326 M Sjustjärnan, Malmö CASTELLUM
Slide 14: Project portfolio with high potential
Erskine & friends, Stockholm Amperen 1, Västerås Project portfolio with high potential ▪ Castellum has retained the growth potential in the project portfolio despite sharp downturn ▪ Challenging market conditions have caused some projects to be postponed ▪ Projects corresponding to approx. Bägaren 5
Slide 15: Achieved sustainability targets two years ahead of schedule
Achieved sustainability targets two years ahead of schedule No. of installed solar PV systems MW Sustainability certified properties 120 20 300 60% 110 100 250 50% 90 15 Solar power 80 Solar power generates 200 40% 17%generates of the 70 17% of the company's 60 company’s yearly 10 150 30% annual ele
Slide 16: Key takeaways
Eden, Malmö Key takeaways ▪ Higher earnings and increased NOI = strong underlying business ▪ Net debt decrease (SEK -16 Bn) ▪ Risk for weaker rental market possibly with increased vacancies ▪ Good growth from projects and exciting project pipeline CASTELLUM
Slide 17: Q&A
GreenHaus, Helsingborg Interim report January-March 2024 3 May Q&A Please use the chat function or notify the host for questions
Slide 18: Thank you!
Thank you! Contact: joacim.sjoberg(at)castellum.se jens.andersson(at)castellum.se
Slide 19: Appendix
Appendix 19 CASTELLUM 14/2/2024 YEAR-END REPORT 2023
Slide 20: Condensed consolidated statement of comprehensive income
Condensed consolidated statement of comprehensive income 2023 2022 2023 2022 SEK M Oct-Dec Oct-Dec Jan-Dec Jan-Dec Income 2,477 2,247 9,806 8,928 Operating costs -333 -452 -1,517 -1,490 Maintenance expenses -136 -93 -349 -286 Property tax -144 -147 -590 -580 Lettings and property administration expe
Slide 21: Condensed consolidated balance sheet
Condensed consolidated balance sheet SEK M 31 Dec 2023 31 Dec 2022 ASSETS Investment properties 137,552 153,563 Goodwill 4,495 4,969 Leases, right-of-use 1,441 1,591 Associated companies 10,008 13,286 Derivatives 1,948 3,215 Other fixed assets 224 312 Other receivables 1,580 1,937 Cash and cash equi