Baltic Sea Properties As · OSL:BALT
Baltic Sea Properties As — Investor Presentation (August 2023)
40 slides from Baltic Sea Properties As's investor presentation, August 2023
Slide 1: Company Presentation
Company Presentation August 2023
Slide 2: Contents
Contents 1. About us 2. Strategy 3. Portfolio 4. Financials 5. Risks 6. Economic environment 7. Investment opportunity Company Presentation August 2023
Slide 3: About Us
About Us - Vision, Mission & Values - BSP in Brief - Leadership
Slide 4: Vision, Mission & Values
Vision, Mission & Values Vision To be the preferred real estate partner and leading investment company in the region. Mission To foster a great team, to provide high quality and sustainable solutions for our partners, thus creating superior long-term value and returns for our shareholders. Values ◦
Slide 5: BSP in Brief
BSP in Brief • Baltic Sea Properties AS (BSP) is among the Baltics’ leading real estate developers & investors – owning a portfolio of logistics, industrial and BSP Asset Management Klaipėda commercial assets. • BSP is a public company listed on the Oslo Stock BSP Asset Management Exchange (OSE, EG:
Slide 6: Leadership
Leadership Highly qualified team with vast experience in local and international real estate James Andrew Clarke Lars Christian Berger Sigitas Jautakis Chairman & CIO Group CEO Managing Director, Vilnius Executive MBA, BMI Executive Institute M.A. Business and Finance, Heriot-Watt M.Sc. Economics, V
Slide 7: Strategy
Strategy - Goals & Objectives - Investment Strategy
Slide 8: Goals & Objectives
Goals & Objectives ◦ To target an average annual IRR (Internal Rate of Return) of 10-15%. ◦ To target the company’s equity growth to 100m EUR before Y/E 2028. ◦ To target an annual dividend of 1.5-3.0% of Net Asset Value (NAV). ◦ To monitor and investigate strategic M&A (Mergers and Acquisitions) op
Slide 9: Investment Strategy
Investment Strategy Geography Baltic States (primarily) – Lithuania, Latvia & Estonia Asset type > 65% Industrial & Logistics < 35% Other/Opportunity (including retail; office; DIY; hotels; residential; social & other infrastructure; renewable energy; and related private equity investment, etc.) Equ
Slide 10: Portfolio
Portfolio - Investment portfolio (Lithuania) - Portfolio sustainability & certification status - Development portfolio - Development approach - Project pipeline projections
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Slide 12: Investment Portfolio (Lithuania)
Investment Portfolio (Lithuania) Portfolio mix by m2 Investment properties (1H 2023) Gross Lease-able Area (GLA) of portfolio (m2) 124 064 Gross Asset Value (GAV) excluding land bank value (EUR) 94 500 000 Number of properties 13 Logi stics Industrial Commercial Contracted annualised rent (EUR) 8 04
Slide 13: Investment Portfolio (Lithuania)
Investment Portfolio (Lithuania) BSP Park - Vilnius A1 - Built to suit (BTS) logistics BSP Park – Vilnius East – Acquired logistics BSP Park – Vilnius A4 - Built to suit (BTS) terminal leased to Oribalt. terminal leased to Girteka Logistics. logistics terminal leased out to Rhenus. Oribalt offers a
Slide 14: Investment Portfolio (Lithuania)
Investment Portfolio (Lithuania) Klaipeda Business Park – Klaipeda FEZ - BSP Park – Vilnius West - Built to suit (BTS) BSP Park – Vilnius A3 – Acquired logistics Developed industrial business park in Klaipėda logistics terminal leased out to Delamode terminal leased to Vingės Terminalas. Free Econom
Slide 15: Investment Portfolio (Lithuania)
Investment Portfolio (Lithuania) Grandus Shopping Centre - Klaipeda – BSP Retail - Rokiškis & Šilutė - Acquired grocery BSP Park – Telsiai & Siauliai FEZ - Built to suit Acquired neighbourhood shopping center, retail centres leased to Maxima and other tenants. (BTS) distribution centres, leased to D
Slide 16: Portfolio Sustainability & Certification Status
Portfolio Sustainability & Certification Status
Slide 17: Development Portfolio
Development Portfolio 2023 developments & acquisitions pipeline (Lithuania & Latvia) Development land bank (Lithuania) Segment Location GLA m2 Segment Location Land m2 Commercial - development Klaipėda 7 200 Industrial & logistics BSP Park – Vilnius A1 81 000 Logistics – development Vilnius 17 225 L
Slide 18: Development Approach
Development Approach Client focus Attractive locations Quality buildings Long-term Our projects are designed We own and acquire We design and build our projects We believe in long-term according to our clients' current development land in strategic with a focus on superior design, partnership with s
Slide 19: Current Project Pipeline Projections
Current Project Pipeline Projections Portfolio value projections (EUR) 36% € 140 000 000 131 417 250 1 657 250 157t m2 9 245 000 9 900 000 14 000 000 € 120 000 000 96 615 000 124t m2 € 100 000 000 € 80 000 000 • BSP has a project pipeline of around 50 000 m2, including both development and € 60 000
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Slide 21: Recent Development Track Record
Recent Development Track Record Projects developed Recognition • 13 000 m2 logistics terminal for Rhenus • “Strongest Brand Baltics – Developers Logistics in 2017 Logistics” in 2020, 2021, 2022 and 2023 (European Real Estate 500) • 5 000 m2 expansion for Rhenus in 2020 • 6 600 m2 logistic terminals
Slide 22: Financials
Financials - Key Figures - Finance - Net Asset Value (NAV) Development
Slide 23: Key figures – Baltic Sea Properties AS
Key figures – Baltic Sea Properties AS BSP Group Investment portfolio 1H 2023 2022 2021 2020 2019 Numbers in tEUR Investment projects (m2) 124 064 124 064 105 066 95 632 123 995 Fair value of investment projects ex. development land 94 508 93 050 71 641 62 950 63 420 Development land value 3 620 3 6
Slide 24: Finance
Finance Debt maturity Interest Swap maturity Year EUR Share % Interest margin EUR Share % Swap fixed rate 0-1 year 17 305 324 88,03 % 0,58 % 1-3 years 2 354 042 11,97 % 0,72 % 4-5 years 53 937 907 91,46 % 2,19 % Total funding real estate portfolio 1 53 937 907 91,46 % 2,19 % 19 659 366 36,45 % 0,60
Slide 25: Net Asset Value (NAV) Development
Net Asset Value (NAV) Development NAV & dividend development Accumulat ed dividend since start Net Asset Value (NAV) NAV + Accumulated dividend € 50 M € 6,0 M € 45 M € 43,2 M € 42,1 M € 42,3 M € 41,1 M € 40,2 M € 5,0 M € 38,8 M € 40 M € 37,8 M € 35,0 M € 35,6 M € 39,5 M € 39,6 M € 39,6 M € 38,5 M €
Slide 26: Risk Management
Risk Management - General - Real Estate Market, Portfolio & Assets - Real Estate Development - Suppliers/Contractors - Tenants/Income & Vacancy - Capital Management & Interest Rates - Liquidity - Currency - Corporate Governance & Code Of Conduct - Human resource Management
Slide 27: Risk Management
Risk Management Risks Major Factors & Issues Mitigation & Management Political – Invasion of Ukraine & embargos NATO membership, refocus of transit logistics General Economic – Inflation, growth & interest rates Contingencies, discipline & cautious growth ambitions Social - Cost of living & demograp
Slide 28: Risk Management
Risk Management Risks Major Factors & Issues Mitigation/Management Tenants/Income Profitability stress due to inflation & global Tenant partnership approach with long term leases and good communication. economic slowdown Vacancy New leases and renewals Portfolio weighted average unexpired lease term
Slide 29: Risk Management
Risk Management Risks Major Factors & Issues Mitigation/Management Code of Conduct Corruption, gross negligence, irresponsible Strict policies with high standards of integrity and zero-tolerance policy for any breaches business practices and/or partnerships Human Resources Maintaining professional,
Slide 30: Economic Environment
Economic Environment - Economic Forecast 2024 - Lithuania At A Glance - Transport Network - Real Estate Yield Spread Comparison
Slide 31: Economic Forecast 2024
Economic Forecast 2024 GDP forecast 2023 0.5 % GDP, forecast 2024 2.7 % 1.1 % 1.6 % volume % change on preceding year Lithuania Sweden Euro Area Unemployment forecast 2023 Unemployment rate, forecast 2024 6.5 % 8.1 % 6.7 % 6.6 number of unemployed as a percentage of total labour force % Lithuania Sw
Slide 32: Lithuania At A Glance
Lithuania At A Glance NATO membership Top 11 th 2004 1 st 3 globally Business environment in EU in Europe in Europe Real GDP per capita growth Economic For attracting FDI (2000-2020) freedom jobs per capita Fitch Moody’s S&P EU membership Credit Ratings 1-3 A 6 th A2 6 th A+ Low bureaucracy days Sta
Slide 33: Transport Network
Transport Network Internationally renowned public logistics centres § Logistics centers have been established at important infrastructure cross roads, and provide companies with efficient one-stop-shop solutions § Companies gain competitive advantage through clustering around transportation infrastr
Slide 34: Real Estate Yield Spread Comparison
Real Estate Yield Spread Comparison Yield spreads for Norwegian versus BSP prime logistics Yield gap for BSP • BSP attracts solid financing from international * Norwegian Prime yi eld Finance cost Yield spread and local banks with funding costs fixed to +1.99% EURIBOR, with competitive margins and c
Slide 35: Investment Opportunity
Investment Opportunity - Investment Rationale - BSP Investment Case
Slide 36: Investment Rationale
Investment Rationale Yield Platform Financing Market position Timing High-yielding quality Nordic governance, local Market access Preferred partner Current market cycle assets property management The current macro-economic As a Nordic investor in the Our Nordic governance and We hold a portfolio of
Slide 37: BSP Investment Case
BSP Investment Case Why invest in the Baltics? • Fundamental drivers: • Strong GDP growth in past economic cycle and well positioned for future growth. (add stats) • Low public & private debt levels. (add stats) • Well regulated environment, with progressive governance and highly skilled labor. • Gl
Slide 38: BSP Investment Case
BSP Investment Case Why Baltic Sea Properties? • Nordic governance with a regulated and visible platform on Oslo stock exchange • Solid leadership and professional management with a strong track record • Clearly established investment parameters and risk management including portfolio strategy, leve
Slide 39: Disclaimer
Disclaimer This presentation has been prepared by Baltic Sea Properties AS in good faith and to our best ability with the purpose to give information about the company’s operations and status. This document must not be understood as an offer or encouragement to invest in the company. Baltic Sea Prop
Slide 40: Contacts
Contacts Lars Christian Berger CEO +47 930 94 319 LCB@balticsea.no James Andrew Clarke Chairman & CIO +370 (612) 37 515 JAC@balticsea.no
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