Wihlborgs Fastigheter Ab · OMXSTO:WIHL
Wihlborgs Fastigheter Ab — Q2 2023 Earnings Presentation
55 slides from Wihlborgs Fastigheter Ab's earnings presentation, Jul 10, 2023
Slide 1: Interim report January - June 2023
Interim report January - June 2023 Ulrika Hallengren, CEO and Arvid Liepe, CFO 10 July 2023
Slide 2: Summary Q2 2023
Summary Q2 2023 • Rental income +20% • Operating surplus +25% • Higher financing costs balanced by increased earnings • Positive net letting • Stable balance sheet • Access to liquid funds • Continuing to invest for the future 2
Slide 3: Results January-June 2023
Results January- June 2023 • Rental income increased by 21% to SEK 1,935 million (1,599) • Operating surplus increased by 22% to SEK 1,389 million (1,135) • Income from property management amounted to SEK 948 million (950) • Result for the period amounted to SEK 625 million (1 549), corresponding to
Slide 4: Rental income development
Rental income development Rental income Jan-Jun 2022, SEKm 1,599 Aquisitions 94 Currency effect 27 Index 137 Additional charges 48 Completed projects, new leases and renegotiations etc. 32 Rental income Jan-Jun 2023 1,935 4
Slide 5: Net letting
Net letting Q2 Q2 Jan-Jun Jan-Jun SEKm 2023 2022 2023 2022 New leases 77 109 154 163 Terminations 63 68 134 94 Net letting 14 41 20 69 5
Slide 6: New leases Q2 – a selection
New leases Q2 — a selection nowaste FoYvEN sicma Ni JO 2ecbee Malmé stad SECURITAS LAKR Morin collector ze Jeol risen se bank
Slide 7: Net letting quarterly
Net letting quarterly 150 100 50 0 -50 -100 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 #REFERENS! New leases #REFERENS! Terminations #REFERENS! Net 7
Slide 8: Solid customers
Solid 21% customers Revenues from City of Helsingborg top ten tenants City of Malmö 24% Danish Building and Property Agency Revenues from Danske Bank public tenants Ericsson Lund university Malmö university 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* 01-07-2023 01-07-2022 01-07-2023 01-07-2022 SEK m SEK m Percent SEK m SEK m Percent Rental value 4,250 3,537 +20.2 Rental value 3,851 3,489 +10.4 Rental Rental income 3,612 3,221 +12.1 3,905 3,239 +20.6 income *Ex
Slide 10: Changes in market value properties
Changes in market value properties SEK m Carrying amount 1 January 2023 55,179 Acquisitions 20 Investments 933 Properties sold - Changes in value -87 Currency translations 584 Carrying amount 30 June 2023 56,629 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 Q2 11
Slide 12: Portfolio – the entire property stock
Portfolio – the entire property stock 1 July, 2023 Market value Op. Surplus* Occupancy Running Running yield SEK m SEK m rate, % yield, % fully let, % Total excl. 53,630 2,975 93 5.5 6.1 projects and land Total Wihlborgs 56,629 2,985 92 5.3 5.9 * Excluding property admin 12
Slide 13: Portfolio – Office properties
Portfolio – Office properties 1 July, 2023 Market value Op. Surplus* Occupancy rate, Running Rnning yield SEK m SEK m % yield, % fully let, % Malmö 19,266 1,000 95 5.2 5.5 Helsingborg 8,556 457 91 5.3 6.0 Lund 8,298 472 92 5.7 6.3 Copenhagen 10,712 590 94 5.5 6.0 Total 46,832 2,518 94 5.4 5.9 * Excl
Slide 14: Portfolio – Logistics/Production
Portfolio – Logistics/Production 1 July, 2023 Market value Op. Surplus* Occupancy Running Running yield SEK m SEK m rate, % yield, % fully let, % Malmö 2,092 142 97 6.8 7.1 Helsingborg 3,489 243 89 7.0 8.1 Lund 271 18 98 6.7 6.8 Copenhagen 946 54 96 5.7 6.0 Total 6,798 457 92 6.7 7.5 * Excluding pro
Slide 15: Malmö Helsingborg Lund Copenhagen
Malmö Helsingborg Lund Copenhagen 40 % of property value 22 % of property value 16 % of property value 22 % of property value 635,000 m2 652,000 m2 264,000 m2 703,000 m2 103 properties 107 properties 34 properties 62 properties 22,328 SEK m property value 12,575 SEK m property value 9,086 SEK m prop
Slide 16: Acquisitions
Acquisitions 16
Slide 17: Klaedemålet
Klaedemålet Copenhagen July 4 2023 3 900 m2 Total property value DKK 71,5 million 17
Slide 18: Financials
Financials 18
Slide 19: Income statement
Income statement SEK m Q2 2023 Q2 2022 Rental income 964 804 +20% Operating surplus 722 578 +25% Income property management 491 483 +2% Change in value of properties -59 151 Change in value of derivatives 35 292 Pre-tax profit 467 926 Profit for the period 370 733 19
Slide 20: Consolidated balance sheet
Consolidated balance sheet, SEK m 30-06-2023 30-06-2022 Investment properties 56,629 51,760 Right-of-use assets 143 146 Other fixed assets 424 387 Derivatives 638 669 Current receivables 332 339 Liquid assets 185 443 Total assets 58,351 53,744 Equity 23,086 22,607 Deferred tax liability 5,341 4,992
Slide 21: Key figures
Key figures 30-06-2023 30-06-2022 Equity/assets ratio, percent 39.6 42.1 Leverage properties, percent 50.3 48.0 Interest coverage ratio, multiple 3.2 7.2 Per share, SEK EPRA net disposal value 75.09 73.54 EPRA net reinstatement value 90.41 87.60 Earnings per share 2.03 5.04 EPRA EPS 2.88 2.77 21
Slide 22: EPRA NRV
EPRA NRV Average annual growth: 16 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 Q2 22
Slide 23: 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 jun-1
Slide 24: 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 Q2 24
Slide 25: Current financing, June 2023
Current financing, June 2023 Total debt: SEK 28.5 bn 8% 50% 42% Bank loans Danish mortgage loans Bonds 25
Slide 26: 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 2023 15,940 4.94 820 820 2024 1,788 1.43 5,600 5,050 2025 1,788 1.44 12,161 10,764 2026 1,252 1.62 1,125 625 2027 1,823 3.27 624 624
Slide 27: Interest rate sensitivity
Interest rate sensitivity 7,00 Average interest rate, % 6,00 The underlying rate can increase by 2.0 percentage points from the level end June and the ICR would still be at our 5,00 target level of 2.0 times. 4,00 3,00 2,00 The underlying rate can increase by 5.0 percentage points 1,00 from the leve
Slide 28: Fixed interest period and loan maturity
Fixed interest period and loan maturity Fixed interest period, years Loan maturity, years 7 7,0 6 6,0 5 5,0 4 4,0 3 3,0 2 2,0 1 1,0 0 0,0 sep-18 mar-19 sep-19 mar-20 sep-20 mar-21 sep-21 mar-22 sep-22 mar-23 sep-18 mar-19 sep-19 mar-20 sep-20 mar-21 sep-21 mar-22 sep-22 mar-23 28
Slide 29: Available funds
Available funds Unutilized credit facilities plus liquid funds, SEK mn 4500 4000 3500 3000 2500 2000 1500 1000 500 0 Q3 2018 Q4 2018 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 29
Slide 30: Sustainability
Sustainability 30
Slide 31: Certified properties Jan-June 2023
Certified properties Jan-June 2023 Huggjärnet 13 – house 2, Malmö Miljöbyggnad level Silver Huggjärnet 13 – house 3, Malmö Miljöbyggnad level Silver Polisen 5, Helsingborg Miljöbyggnad In-Use level Silver Hermes 10, Helsingborg Hindbygården 8, Malmö Miljöbyggnad In-Use level Silver Miljöbyggnad leve
Slide 32: Sustainability results 2023
Sustainability results 2023 • Energy use kWh/sqm -3% (Q2) • Total district heating effect in Malmö -6% (2023) • Measures taken by Wihlborgs employees (Q2) o St.Jörgen 21 -40% o Österport 7 -35% o Muren 5 -35% 32
Slide 33: Examples of societal commitments
Examples of societal commitments Techship Ideon Navigator Scaleup is an entrepreneurial programme is an accelerator program aimed at aimed at motivating and inspiring selected smaller companies with young people to start their own substantial growth potential. It business or engage in further provid
Slide 34: Investments in progress
Investments in progress 34
Slide 35: Ground breaking ceremonies
Ground breaking cermonies • 24 Jan, Helsingborg Rausgård 21 - Nederman • 1 Feb, Helsingborg Plåtförädlingen 15 - Springhill • 2 Mar, Lund Tomaten 1 - Inpac • 9 Mar, Malmö Bläckhornet 1 (VISTA) • 28 Jun, Helsingborg Snårskogen 6 - Rollco 35
Slide 36: Projects investments
Projects investments January-June 2023 SEK m Investments 933 Projects in progress 3,354 Invested by period end -988 Remains to invest 2,366 36
Slide 37: Bläckhornet 1 - VISTA
Bläckhornet 1 - VISTA Hyllie, Malmö Completion Q4 2024 / Q4 225 15,000 m2 mobility hub SEK 884 M 16,600 m2 office 37
Slide 38: Kunskapen 1 - SPACE
Kunskapen 1 - SPACE Science Village, Lund Completion Q4, 2023 6,000 m2 244 Mkr 38
Slide 39: Posthornet 1, fas 2
Posthornet 1, fas 2 Lund, City Completion Q4, 2025 9,900 m2 448 Mkr 39
Slide 40: Tomaten 1
Tomaten 1 Lund Completion Q2, 2024 Inpac 6,400 m2 137 Mkr 40
Slide 41: Rausgård 21
Rausgård 21 Helsingborg Completion Q3, 2024 Nederman 25,000 m2 420 Mkr 41
Slide 42: Huggjärnet 13
Huggjärnet 13 Helsingborg Completion phase 1 Q2, 2023 Automationspartner, Soprema, CYTO365 8,000 m2 108 Mkr 42
Slide 43: Plåtförädlingen 15
Plåtförädlingen 15 Helsingborg Completion Q4, 2023 Springhill 8,700 m2 141 Mkr 43
Slide 44: Snårskogen 5
Snårskogen 5 Helsingborg Completion Q3, 2024 Rollco 3,600 m2 78 Mkr 44
Slide 45: Sunnanå 12:54
Sunnanå 12:54 Malmö Completion Q2, 2025 17,000 m2 302 Mkr 45
Slide 46: Future projects
Future projects 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: Börshuset 1
Börshuset 1 Malmö, City Completion TBD (Q3, 2025) 5,500 m2 TBD 48
Slide 49: Tomaten 1, Örja, Pedalen, Bilrutan 5
• Tomaten 1 Tomaten 1 Örja, Pedalen etc. Bilrutan 5 Sunnanå 12.26 Lund Landskrona Landskrona Malmö, Burlöv 2,500 m2 GFA TBD 14,000 m2 GFA 4,000 m2 GFA TBD TBD TBD TBD TBD TBD TBD TBD 49
Slide 50: Stenåldern 7, Benkammen 16, Spännbucklan 9
• Stenåldern 7 • Benkammen 16 Stenåldern 7 Benkammen 16 Malmö Malmö 5,000 m2 GFA 5,500 m2 GFA TBD TBD TBD TBD Spännbucklan 9 Hindbygården 9 Malmö Malmö 5,500 m2 GFA 2,500 m2 GFA TBD TBD TBD TBD 50
Slide 51: Nyhamnen, Malmö
Nyhamnen, Malmö 51
Slide 52: Higher density at Slagthuset
Higher density at Slagthuset 52
Slide 53: Hamnen 16:xx- Smörkajen, Kranen 15
• Hamnen 16:xx- Smörkajen Hamnen 16:xx- Smörkajen Kranen 15 Dockan Naboland 3 Malmö, Nyhamnen Malmö, Dockan Malmö, Nyhamnen Malmö, Burlöv 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 53
Slide 54: Summary Q2 2023
Summary Q2 2023 ✓ Rental income +20% ✓ Operating surplus +25% ✓ Higher financing costs balanced by increased earnings ✓ Positive net letting ✓ Stable balance sheet ✓ Access to liquid funds ✓ Continuing to invest for the future 54
Slide 55: Fa ANT.
Fa ANT.
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