Stendoerren Fastigheter Ab Class B · OMXSTO:STEF_B
Stendoerren Fastigheter Ab Class B — Stendörren Fastigheter — Q3 2023 Earnings Presentation
25 slides from Stendoerren Fastigheter Ab Class B's earnings presentation, 2023
Slide 1: Third Quarter 2023
THIRD QUARTER 2023 STENDÖRREN
Slide 2: Snapshot of Stendörren
SNAPSHOT OF STENDÖRREN SEGMENT (area) GEOGRAPHY (rental income) LIGHT INDUSTRY Warehouse and Stockholm municipality, 29% LOGISTICS logistics, 49% Light industrial, 19% Rest of Stockholm, 32% Office, 21% WAREHOUSE Rest of Mälardalen, 30% Retail, 10% Gothenburg region, 1% RESIDENTIAL BUILDINGS RIGHTS
Slide 3: Stendörren history in short
STENDÖRREN HISTORY IN SHORT PROPERTY VALUE Q3 2023 PROPERTY VALUE 2022 12.5 BN PROPERTY VALUE 2021 12.4 BN 151 PROPERTY VALUE 2020 11.7 PROPERTIES BN 148 PROPERTY VALUE 2019 9.5 PROPERTIES BN 135 PROPERTY 8.9 PROPERTY VALUE 2018 BN 123 PROPERTIES 2023 8.4 VALUE 2017 BN 122 PROPERTIES 2022 PROPERTY 6
Slide 4: 4 reasons to invest in Stendörren
4 REASONS TO INVEST IN STENDÖRREN 1. STABLE CASH FLOW 2. SUSTAINABLE GROWTH • High yielding asset class • Growth locations - Greater Stockholm and Mälardalen region • Long leases • E-commerce as growth driver • Diversified tenant base • Rent levels increase in urban locations – increasing demand and
Slide 5: Operational highlights
OPERATIONAL HIGHLIGHTS Excluding bankruptcy of second largest tenant Exploria NET LETTING (MSEK) STRONG RENTAL INCOME AND NOI GROWTH Leasing new construction 16 15 17 • Full effect from CPI-related rent increase 14 14 • 24% y-o-y NOI increase, 20% y-o-y like for like 8 8 7 5 STRONG LETTING 1 1 •
Slide 6: Financial highlights
FINANCIAL HIGHLIGHTS ROE (%) REVALUATIONS EFFECTS FINANCIAL 26 26 22 KEY FIGURES NEGATIVELY 20 18 15 14 16 • LTM SEK -638m on property portfolio 9 9 10 8 7 7 9 5 INTEREST-RATE RESILIANCE 12% 1 -3 -6 • Approx 75% of interest-bearing debt hedged with a Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 7: Sustainability - achievements
SUSTAINABILITY - ACHIEVEMENTS CLIMATE IMPACT KG CO2/SQ.M ENERGY INTENSITY KWH/SQ.M. DISTRIBUTION OF ENERGY SOURCES 4,50 140 43% 33% Renewables Non-renewables REDUCED CLIMATE IMPROVED ENERGY 4,00 IMPACT BETWEEN 2018- EFFICIENCY PER SQ.M 2022 (KgCO2,e/sq.m) 130 BETWEEN 2018-2022 3,50 2% 120 3,00 4% 4%
Slide 8: Sustainability strategy
SUSTAINABILITY STRATEGY -21.7% Reduction of energy intensity (kvh/kvm) as of 30 September, 2023, compared with base year 2020 49.1% Environmentally certified area out of total area, as of 30 September, 2023 8 Investor Presentation
Slide 9: Sustainability initiatives
SUSTAINABILITY INITIATIVES EXAMPLES IN NEW DEVELOPMENTS BREEAM EXCELLENT OR VERY GOOD • High sustainability focus during entire build evidenced in high rating ENERGY CONSUMPTION WELL BELOW REQUIRED LEVEL • State of the art development Viby 19:66 has exceptionally low energy consumption, 82% belo
Slide 10: Future focus for profitable growth
FUTURE FOCUS FOR PROFITABLE GROWTH • Capitalise on embedded rental growth potential given the asset class in growing ASSET macro- / urban micro locations MANAGEMENT • Continue operational improvements (ref: vacancy and surplus ratio development) • Develop existing building rights of zoned land in gr
Slide 11: Thank you!
THANK YOU! i NN ee | ie Sal — 7 Raat juin, | TS _ en
Slide 12: Appendix
APPENDIX 12 Investor Presentation Picture: Almnäs Deveopment Phase II
Slide 13: Business idea, market and financial objectives
INTRODUCTION BUSINESS MARKET FINANCIAL IDEA OPPORTUNITY OBJECTIVES Stendörren creates profitable growth The properties are strategically located in Return on equity of at least 12 % in net asset value by managing, growth areas (population and economic), EPRA NAV growth of at developing and acquiring
Slide 14: 4 reasons to invest in Stendörren
4 REASONS TO INVEST IN STENDÖRREN 1. STABLE CASH FLOW 2. SUSTAINABLE GROWTH • High yielding logistics, warehouse and light • Properties strategically located in growth areas such as Greater industrial properties with long leases Stockholm and the Mälardalen region • Diversified tenant base of both w
Slide 15: 1. Stable cash flow
1. STABLE CASH FLOW DIVERSIFICATION WITH FOCUS ON GREATER STOCKHOLM PROPERTY PORTFOLIO OVERVIEW • Stendörren has a property portfolio of SEK 12,525m, with a property yield of 6.3%1 as per 30 September 2023 • Rental value2 of SEK 856m with an economic occupancy rate of 94% as per 30 September 2023 •
Slide 16: 1. Stable cash flow – continued
1. STABLE CASH FLOW – CONTINUED DIVERSIFIED TENANT BASE LARGEST TENANTS AS PER Q3 2023 LEASE MATURITY BY RENTAL INCOME Rental Share of Rental area, Tenant income, total rental th. sq.m. SEKm income 266 Coop Logistik AB 68 130 9% 495 Hedin Mölndal Bil AB 14 3 2% Åtta.45 Tryckeri AB 13 11 2% Mountain
Slide 17: 2. Sustainable growth
2. SUSTAINABLE GROWTH WHY FOCUS ON THE STOCKHOLM REGION? POPULATION STOCKHOLM REGION STOCKHOLM REGION 3 000 000 2022 – 2040 • The gross regional product in Stockholm per capita is ca 40% Forecasted CAGR of 0.77% Forecasted population higher than the national average growth of 19,900 2010 – 2021 2 75
Slide 18: 3. Value growth in projects
3. VALUE GROWTH IN PROJECTS PROJECT PORTFOLIO WITH LARGE POTENTIAL Envisaged main Estimated building Estimated Possible Municipality Status Zoning use right sq. m.1 Construction Start 2 • Fully developed up to an Upplands-Bro Logistics 377 500 Within current zoning 2024-2025 additional 656,000 sqm c
Slide 19: 3. Value growth in projects – continued
3. VALUE GROWTH IN PROJECTS – CONTINUED ONGOING AND COMPLETED PROJECTS Q3 2023 Estimated Estimated Size Property Description investment3 Current Phase completion1 sq. m.2 SEKm • Development projects Librobäck 21:3 New light industrial Q4 2023 2 300 51 Construction started within logistics, light Ele
Slide 20: 3. Value growth in projects – continued
3. VALUE GROWTH IN PROJECTS – CONTINUED RESIDENTIAL CONVERSIONS TEGELBRUKET – SKRUBBA - TRAVERSEN • Identifying underutilized assets in urban locations with potential for residential development • The assets have been acquired as cash flow generating properties • As an example, the asset Tegelbruket
Slide 21: 4. Finance – highlights from Q3 report
4. FINANCE HIGHLIGHTS FROM Q3 REPORT NET LETTING (MSEK) ECONOMIC OCCUPANCY (%) Excluding bankruptcy of second largest tenant Exploria 17 16 15 14 14 95 14 94 94 8 8 92 7 91 91 5 90 89 89 89 1 1 1 88 88 88 88 88 87 87 87 87 -2 -1 -2 -4 -6 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 -11 2
Slide 22: 4. Finance – financial targets
4. FINANCE – CONTINUED FINANCIAL TARGETS ROE (%) NAV GROWTH (%) 37 35 26 26 29 20 22 25 18 20 20 18 22 23 23 22 16 15 16 14 17 17 18 15 9 9 10 9 13 12 12% 8 7 7 15% 11 11 10 9 9 5 1 -3 -6 1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 -1 -5 -8 2018 2019 2020 2021 2022 2023 Q1
Slide 23: 4. Finance – debt funding
4. FINANCE – CONTINUED DEBT FUNDING DEBT FUNDING OVERVIEW LOAN MATURITY INTEREST FIXING SEKm SEKm 7% 2 500 3 000 2 700 2 158 18% 2 000 2 500 2 178 1 708 1 542 2 000 1 500 1 500 1 000 783 1 050 900 1 000 75% 500 269 369 500 0 0 0 0 Bank debt Sr Unsecured bond Hybrid bond • Total interest-bearing debt
Slide 24: 4. Finance – key equity ratios and ownership overview
4. FINANCE – CONTINUED KEY EQUITY RATIOS AND OWNERSHIP OVERVIEW SEKm SEK/share % OF SHAREHOLDER % OF VOTES 7 000 350 CAPITAL STENDÖRREN REAL ESTATE AB 40,6 58,0 6 000 300 ALTIRA AB 9,5 14,1 SEB INVESTMENT MANAGEMENT 11,5 6,4 LÄNSFÖRSÄKRINGAR 5 000 250 FASTIGHETSFOND 8,6 4,8 TREDJE AP-FONDEN 4,1 2,3
Slide 25: 4. Finance – assessed earnings capacity
4. FINANCE – CONTINUED ASSESSED EARNINGS CAPACITY AS OF 1 OCTOBER 2023 • According to the company’s assessment, the total rental 856 179 income (after deductions for vacancies and discounts) on a rolling 12-month basis amounts to approximately SEK 856 679 million. • The company also estimates that c
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