Slide 1: KMC Properties – The preferred partner for logistics and industrial properties
KMC Properties – The preferred partner for logistics and industrial properties Company presentation 30 June 2022
Slide 2: Important information
Important information ▪ This presentation has been prepared by KMC Properties ASA ("KMC Properties ASA" or the "Company"). The presentation and the information contained herein may not be disclosed, taken away, reproduced, redistributed, copied or passed on, directly or indirectly, to any other pers
Slide 3: Agenda
Agenda 1 Tr a n s a c t i o n s i n b r i e f 2 Attractive investment opportunities 3 New platform set for accelerated value creation 4 Appendix 3
Slide 4: +40 years heritage in development of industrial properties
+40 years heritage in development of industrial properties 2006 2012 2014 2018 2020 BEWi acquires BEWi acquires BEWi operations Sites in Denmark Further acquisitions Genevad, Swedish company encompassing all and Sweden sold to of real estates with effectively Thermisol along Nordic countries KMC; fa
Slide 5: KMC Properties at a glance
KMC Properties at a glance Company description Key KPIs As per Q1-2022 ▪ Portfolio of 46 properties focused on industrial and logistics with long-term leases, solid tenants and strategic locations critical for tenant operations 46 ▪ Ambitious strategy to grow the portfolio, both through capex initia
Slide 6: Now executing on multiple value accretive growth opportunities
Now executing on multiple value accretive growth opportunities WAULT: 13.2 yrs Gross yield1: 6.6% 16.6 yrs 6.3%5 WAULT: 12.0 yrs Gross yield1: 6.7% 1,9464 ~7,286 WAULT: 10.1 yrs 13.9 yrs 976 976 Gross yield1: 6.6% 19.0 yrs 7.2% 6.9% 970 10.4 yrs 5,340 (NO&SE) 1 286 7.5% 3933 1 286 859 4 028 3 859 26
Slide 7: Strong transaction rationales
Strong transaction rationales Delivering on accretive growth strategy Acting on attractive portfolio opportunity Solidifying KMC Properties’ position to accelerate value Opportunity # initiatives Investment Gross yield BEWI property portfolio creation going forward Capex 6 NOK 34m 7.5% x242 Industri
Slide 8: High level financing overview
High level financing overview High level financing description • The Company currently has a growth pipeline comprising a number of available investment opportunities: • Capex: The Company currently has several income generating capex projects amounting to approx. NOK 34 million (the "Capex”). • Gre
Slide 9: Agenda
Agenda 1 Transactions in brief 2 Attractive investment opportunities 3 New platform set for accelerated value creation 4 Appendix 9
Slide 10: Introduction to investment opportunities
Introduction to investment opportunities Delivering on accretive growth strategy Acting on attractive portfolio opportunity Opportunity Tenant Investment Gross yield WAULT Timing BEWI property portfolio Capex Various n.a. NOK 34m 7.5% 11 years H2-2022 Total investment size of NOK 1,946m (NOK 970m fo
Slide 11: Investment opportunities enabling a step-change for KMC Properties
Investment opportunities enabling a step-change for KMC Properties Accretive growth strategy KMCP after BEWI Current Greenfield KMCP after growth properties KMCP fully funded1 Capex Greenfield Acquisitions investments initiatives portfolio Properties (#) 46 1 - 2 3 52 242 76 GLA (sqm) 377k 5k - 22k
Slide 12: Capex: Actively using new investments to increase yield and WAULT
Capex: Actively using new investments to increase yield and WAULT Current capex program Attractive benefits from continuous capex programs ▪ Committed pipeline of six capex initiatives for H2-2022 with a total Increase property yield investment size of NOK 34m ▪ Expansion and furnishing of offices a
Slide 13: Greenfield: Attractive projects for new and existing clients
Greenfield: Attractive projects for new and existing clients Salmon processing facility Packaging hub Opportunity in brief Opportunity in brief ▪ New slaughter and filet facility for Slakteriet AS in Florø ▪ New state-of-the-art packaging facility for BEWI on Hitra. Fishboxes in EPS being the ▪ Faci
Slide 14: Greenfield: A key component in KMC Properties' growth strategy
Greenfield: A key component in KMC Properties’ growth strategy In focus: Building a salmon processing facility for Slakteriet AS Executing on growth strategy Solid and attractive tenant Attractive key metrics ▪ Slakteriet AS is a modern salmon processing company Rental income: NOK c. 46m High qualit
Slide 15: Acquisitions: Delivering on growth strategy by acquiring three single assets
Acquisitions: Delivering on growth strategy by acquiring three single assets with accretive project economics Undisclosed industrial property INWIDO – Rogalandsvej 3 INWIDO – Fabriksvej 3 and 4 The tenant delivers a wide range of products and services to the horeca The property is leased to KPK Døre
Slide 16: BEWI property portfolio: Step-change acquisition for KMC Properties
BEWI property portfolio: Step-change acquisition for KMC Properties Sound strategic rationale Key metrics (for total portfolio) High-quality ✓ High-quality property portfolio of 24 industrial facilities Rental income: NOK c.122m asset (and one land plot) strategically located BTA: 245k ✓ Significant
Slide 17: Agenda
Agenda 1 Transactions in brief 2 Attractive investment opportunities 3 New platform set for accelerated value creation 4 Appendix 17
Slide 18: New platform set for accelerated value creation
New platform set for accelerated value creation Significantly larger base to grow from Maintaining portfolio gross yield Key KPIs Gross asset value development (NOKm) Gross yield development (%) 76 Properties 7 286 6,6% 6,7% 6,6% 5 340 701k 4 028 GLA (sqm) NOK 469m Run rate NOI KMC Properties KMCP a
Slide 19: Revisiting the growth plan
Revisiting the growth plan Ahead of schedule on ambitious growth plan Key considerations c. NOK 1bn per year on average ▪ Existing growth criteria remains Organic growth and smaller ▪ KMCP will continue to target around NOK 1bn per year on acquisitions average of growth from organic initiatives incl
Slide 20: New growth opportunities set to strengthen KMCP equity story
New growth opportunities set to strengthen KMCP equity story Strategic locations for the tenants with proximity to key clients 1 or business critical resources or in established industry clusters. Solid client base of successful companies with long 2 track records operating in attractive industries
Slide 21: Agenda
Agenda 1 Transactions in brief 2 Attractive investment opportunities 3 New platform set for accelerated value creation 4 Appendix 21
Slide 22: KMC recognize the importance of embedding ESG in several aspects of our operations
KMC recognize the importance of embedding ESG in several aspects of our operations Environmental Social Governance Measures for 2022: Measures for 2022: Measures for 2022: ▪ Develop an environmental policy ▪ Develop a human rights policy including statements on ▪ Develop an ESG strategy ▪ Develop a
Slide 23: BEWI property portfolio: Solid and attractive tenant
BEWI property portfolio: Solid and attractive tenant BEWI in brief ▪ Founded in 1980 by the Bekken family. Has since inception developed the company into becoming a large Committed owners with industrial heritage European packaging and insulation player EUR 748m ▪ Strategically integrated throughout
Slide 24: All processes are progressing according to plan
All processes are progressing according to plan Asset Milestones Status Comments Tenant agreement Ongoing In process of finalizing the tenant agreement – expected signing in June 2022 Plot acquisition Ongoing Ongoing discussions – Plot acquisition expected to be completed in November/December 2022 S
Slide 25: Overview of the properties (I/IV)
Overview of the properties (I/IV) Options Cost coverage Lettable Contract Parent Maintenan Property # Country Address County Tenant Type Construction year area CPI adj. Extension Put / call3 Insurance end guarantee ce tax (sqm) 1 Norway Lyngenvegen 5 Lundamo Fiizk Covers AS Production 1975 2 200 Dec
Slide 26: Overview of the properties (II/IV)
Overview of the properties (II/IV) Options Cost coverage Lettable Contract Parent Maintenan Property # Country Address County Tenant Type Construction year area CPI adj. Extension Put / call3 Insurance end guarantee ce tax (sqm) 24 Norway Strandgata 105 Havøysund Insula AS Combined 1940, 1983, 2006
Slide 27: Overview of the properties (III/IV) – New opportunities
Overview of the properties (III/IV) – New opportunities Options Cost coverage Lettable Contract Parent Maintenan Property # Country Address County Tenant Type Construction year area CPI adj. Extension Put / call Insurance end guarantee ce tax (sqm) 46 Norway Sørkilen 3 + Østkilen 14 Fredrikstad Bewi
Slide 28: Overview of the properties (IV/IV) – New opportunities
Overview of the properties (IV/IV) – New opportunities Options Cost coverage Lettable Contract Parent Maintenan Property # Country Address County Tenant Type Construction year area CPI adj. Extension Put / call Insurance end guarantee ce tax (sqm) 69 Norway Fjord Base Florø Florø Slakteriet Producti
Slide 29: Risk factors
Risk factors 1) RISK FACTORS An investment in the Company, thus the Shares, involves inherent risk. Investors should carefully consider the risk factors and all information contained in this Presentation, including the Financial Information and related notes. The risks and uncertainties described he
Slide 30: Risk factors
Risk factors 1.1.4) The Group could be unable to let a property following the expiry or termination of a tenancy As of 31 March 2022, the average remaining fixed lease term under the lease agreements for the Group's properties was 10.1 years. When including the properties from the Acquisitions and t
Slide 31: Risk factors
Risk factors 1.1.6) The Group is exposed to maintenance, technical condition and operation risks While all but two of the Group's lease agreements are triple-net barehouse agreements, the Group may experience unexpected capital expenditure requirements related to its properties. Further, the Group i
Slide 32: Risk factors
Risk factors 1.1.10) The Group has a limited operating history following the Transaction KMC Properties (formerly Storm Real Estate ASA) was established in 2007 and in 2020, KMC Properties and KMC AS combined the two companies resulting in the transformation of the Company from a single asset compan
Slide 33: Risk factors
Risk factors 1.1.12) Risk related to the office building in Moscow The Group owns an office building in Moscow, whose value has been impacted by the sanctions imposed on Russia due to the ongoing invasion of Ukraine. The Group has booked an impairment on the property in the first quarter of 2022. Th
Slide 34: Risk factors
Risk factors 1.2.3) The Group is exposed to currency risk The Group is exposed to foreign currency exchange rate fluctuations. The Group operates internationally, and a significant part of its business and its properties are situated in other countries with other currencies than NOK, which is the Gr
Slide 35: Risk factors
Risk factors 1.3.2) Changes in, or completion of, planning regulations and existing exemption practices by authorities could significantly affect the Group's operations and financial position and changes in infrastructure could materially impact the Group's operations Changes in, or completion, of e
Slide 36: Risk factors
Risk factors 1.4 Risks related to the Shares 1.4.1) Major shareholders could exercise significant influence BEWI Invest AS (directly owning 45.87% of the Shares in the Company as of the date of this Presentation) will after settling the share transactions with Kverva Industries AS and HAAS AS as ann
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