Baltic Sea Properties As · OSL:BALT
Baltic Sea Properties As — Sparebank 1 Markets Seminar (March 2022)
41 slides from Baltic Sea Properties As's conference presentation, Mar 15, 2022
Slide 1: Company presentation Sparebank 1 Markets Seminar
Company presentation Sparebank 1 Markets Seminar 15th of March 2022
Slide 2: Contents
Contents 1. Introduction Baltic Sea Properties AS 2. Implications of the war in Ukraine 3. Tenant overview & market 4. Our portfolio, approach & pipeline 5. Key financials 6. Concluding remarks Company presentation 15th of March 2022
Slide 3: About us
About us
Slide 4: About us
About us ◦ Baltic Sea Properties is among The Baltics’ leading real estate investors and developers – owning a portfolio of logistics, BNTP industrial and retail assets. ◦ BSP is a public company on Euronext Growth – Oslo Stock Exchange (OSE, EG: “BALT”) BSP Asset Management BSP Logistics ◦ BSP has
Slide 5: About us: vision, mission, values
About us 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 ◦ Commitment to ou
Slide 6: Key characteristics of Baltic Sea Properties
Key characteristics of Baltic Sea Properties 1 Attractive portfolio of modern and centrally located industrial & logistics properties 2 Long-term contracts with strong tenants - excellent client relationships 3 Strong organic growth pipeline 4 Baltics is highly attractive for industrial & logistics
Slide 7: Our development approach
Our development approach Tenant focus Attractive locations Quality buildings Long-term Our built to suite development We acquire land plots in strategic We deliver buildings of high standard We believe in the value of long projects are tailor-made to our locations and secure sufficient land with mod
Slide 8: Our team
Our team An experienced management team... Lars Christian Berger Milda Malinauskiene Group CEO Project Manager, Vilnius ■ Previously asset manager for multiple real estate funds; managed more ■ Previously investment manager for the CRE portfolio of Canadian than 300k sqm of commercial property and d
Slide 9: Development | Track record
Development | Track record Strong development operations Publicly recognised in the industry ■ 13,000 sqm logistics terminal was ■ “Strongest Brand Baltics – handed over to Rhenus Logistics in 2017 Developers Logistics” in 2020 and 2021 ■ Repeat business from Rhenus for a (European Real Estate 500)
Slide 10: Solid client base
Solid client base Examples of BSP´s institutional graded clients base a solid income backed portfolio § The Rhenus Group is one of the leading global logistics service providers with 33,500 employees across 820 sites. § The Rhenus Group offers solutions for a wide range of industries along the entir
Slide 11: Implications of the war in Ukraine
Implications of the war in Ukraine What we know now What is next in the short term? ■ Humanitarian crisis - More than 2.5 million refugees ■ High level of uncertainty – high inflation pressure, possible stagflation ■ Will possibly affect society more in the Baltics than the Nordics, due to both ■ Tr
Slide 12: Lithuania exports to Russia & Belarus (2021)
LITHUANIA EXPORTS TO RUSSIAN & BELARUS (2021) INCL. RE-EXPORT Gall peas mioEUR | ae to Russia (TOPIO) 162 85.4% oe Lithuania: total export 3a.ebn EUR (2021) i vw sé Suc neste tes oe ‘asj2z022 oo Gigs to Belarus (TOPS) Sia iia LITHIANIAN-ORIGIN GOODS’ EXPORT TO RUSSIA & BELARUS (2021) - ONLY 2,3% mio
Slide 13: Our market
Our market
Slide 14: At the heart of Northern Europe's transport network
At the heart of Northern Europe’s transport network
Slide 15: Lithuania is a highly attractive nation for industrial operations and business services
Lithuania is a highly attractive nation for industrial operations and business services Attributes of Lithuania making it ideal for industrial operations & business services Rail Baltica – new opportunities for Industrial and Logistics GDP Growth § Average GDP growth of more than 3% p.a. during the
Slide 16: Lithuania offers a resilient economy attractive for operations
Lithuania offers a resilient economy attractive for operations ■ Largest industrial investments in Lithuania in recent years High diversification of Lithuanian export markets (2021) Lithuanian origin products export share, % ■ VMG – 196 M EUR 20% ■ Continental – 185 M EUR; 18% 16% ■ Intersurgical -
Slide 17: Attractive yield spread and high cash-on-cash return in the Baltics
Attractive yield spread and high cash-on-cash return in the Baltics Yield spreads for Norwegian prime logistics versus BSP Attractive financing ■ BSP is able to attract solid financing from local banks with funding cost linked to EURIBOR Prime yield logistics 5Y NOK swap + avg bank margin 1 Yield ga
Slide 18: Our portfolio
Our portfolio
Slide 19: Tenant mix
Tenant mix Distribution of budgeted rent income in 2022
Slide 20: Investment portfolio
Investment portfolio Diversified portfolio of properties Strategic locations Industrial & Mixed use Logistics (70%) Grocery retail (6%) (24%) ■ 5 properties ■ 1 properties (3 stages) ■ 2 properties ■ ~72,450 sqm ■ ~24,500 sqm ■ ~4,350 sqm 1 Year built: 2006 2 Year built: 2017/20 A1 GLA: 17,149 sqm G
Slide 21: Development portfolio
Development portfolio Under development & pipeline Future development ■ BSP manages the development of all projects with an in-house project management ■ Consists of four land plots situated by strategic road networks between Vilnius team and Kaunas (A1); Vilnius and the Polish border (A4/A16); and
Slide 22: Slide 22
Slide 23: Concluding remarks
Concluding remarks ◦ One of the largest and most recognised developers/owners of logistics and industrial space in the Baltics ◦ Significant development track record lays a strong fundament for future growth ◦ Attractive yield spread to Nordics which enables both high cash yield return and value gro
Slide 24: Contacts
Contacts Lars Christian Berger Vilnius office Oslo office CEO – BSP Group +370 652 47287 +47 930 94 319 +47 930 94 319 Didžioji gatvė 10A-29, Vilnius Apotekergata 10, 0180 Oslo 54.6802608217267, 25.288999019388655 59.91535715743743, 10.741997327973516 LCB@balticsea.no Klaipėda office Espen Aas +370
Slide 25: 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. The financial f
Slide 26: Appendices
APPENDICES
Slide 27: Key Financials
Key Financials
Slide 28: Key figures
Key figures P&L 2020-2021 Comments Jan - Dec 2021 Jan - Dec 2020 - Rental income growth with acquisition of EUR EUR Klaipeda Business Park covering several Rental income 6 277 811 5 768 464 strategic divestments in 2021 Property expenses ex mng -212 923 -242 376 - Triple net agreements ensure high s
Slide 29: Key figures
Key figures Balance and other key figures Comments Jan - Dec 2021 Jan - Dec 2020 - Increased portfolio value after transaction of EUR EUR KVP in 2021 despite several divestments Assets - Significant re-leveraging released cash for new Investment property 75 440 646 64 700 000 asset investments & dev
Slide 30: Investment portfolio
Investment portfolio * Annualised rental income including development project is approx. mEUR 6.5
Slide 31: Key figures group Earnings & Net Asset Value
Key figures group Earnings & Net Asset Value Q4 report 2021 (unaudited) Q4 report 2021 (unaudited)
Slide 32: Portfolio
Portfolio
Slide 33: Rhenus | Logistics
Rhenus | Logistics The property was finalised in June 2017 and further expanded in 2020. It is currently leased by Rhenus Svoris, a subsidiary of Rhenus Logistics. Rhenus Logistics is one of Europe’s biggest transportation groups, and Rhenus Svoris covers the group’s operations in the Baltics and Be
Slide 34: Girteka | Logistics
Girteka | Logistics The property is leased by Girteka Logistics, one of Europe’s leading transportation companies, strategically located by Vilnius International Airport. ◦ 42,907 m2 land area ◦ 11,458 m2 storage ◦ 2,014 m2 frozen storage ◦ 3,348 m2 cold storage ◦ 1,134 m2 office. Tenant SPV Girteka
Slide 35: Vinges Terminalas | Logistics
Vinges Terminalas | Logistics The property is strategically located along the highway between Vilnius og Minsk in Belarus. Vinges Terminalas is a local logistics company operating within export, transit, order processing and goods transport. The company has a wide spectre of clients in Europe and CI
Slide 36: Delamode | Logistics
Delamode | Logistics The property was finalized in August 2020 and is currently leased by Delamode Baltics, a dynamic supplier of freight forwarding-solutions to the global market. In July 2021, BSP signed an agreement with Delamode to expand the facility with approximately 4,780 m2 (expected handov
Slide 37: Oribalt | Logistics
Oribalt | Logistics The property was finalized in August 2020 and is currently leased by Oribalt. Oribalt offers a wide spectre of logistics solutions for pharmaceutical producers , including storage, distribution, transportation and direct delivery. Oribalt has during Q1 2022 requested an expansion
Slide 38: Klaipėda Business Park | Industrial
Klaipėda Business Park | Industrial Klaipėda Business Park (KVP) offers its tenants industrial, commercial and office spaces within the Free Economic Zone of Klaipeda. The property was acquired by BSP in April 2021. Tenant SPV Multiple (27) Klaipėdos verslo parkas Pastatų Vystymas Location Klaipėda
Slide 39: Retail portfolio
Retail portfolio Location SPV Lithuania BSP Retail Properties 1 BSP Retail Properties 5 Maturity lease contract Size 2022-2034 4,358 m2
Slide 40: DPD | Development
DPD | Development Baltic Sea Properties has signed two lease agreements with the French-owned parcel delivery group DPD (owned by Le Groupe La Poste) for the development of two new distribution centers in Siauliai and Telsiai, Lithuania. The size of the terminals combined is approx. 4,000 m2 and wil
Slide 41: Land Bank | Development
Land Bank | Development Baltic Sea Properties holds three strategically located land plots along strategic road networks near Vilnius and Klaipeda. By Rhenus terminal Size 4.1 hectare Location Highway A4, Vilnius Liepų Parkas By Oribalt terminal Size 3.6 hectare Size 6.9 hectare Location Liepų Stree
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