FEBRUARY 23, 2018 PRESENTATION CARNEGIE

Transcription

1 FEBRUARY 23, 2018 PRESENTATION CARNEGIE

2 AGENDA PART 1 COMPANY PRESENTATION & BUSINESS RATIONALE PART 2 FINANCIAL REPORT FULL YEAR 2017 PART 3 GROWTH CONTINUE 2

3 PART 1 COMPANY PRESENTATION & BUSINESS RATIONALE

4 COMPANY PRESENTATION & BUSINESS RATIONALE BUSINESS IDEA AND OBJECTIVES BUSINESS IDEA Stendörren Fastigheter creates long-term growth and value creation by acquiring, developing and managing properties within the greater Stockholm region, with focus on the segments warehouse and light industrial. OVERALL OBJECTIVES Stendörren Fastigheter creates high risk-adjusted return for its shareholders by acquiring, developing and managing properties. FINANCIAL OBJECTIVES Demonstrate an average long-term annual return on equity of at least 12% The long-term interest coverage ratio must be at least 2.0x The long-term equity ratio shall be 35 % and never fall below 20% 4

5 COMPANY PRESENTATION & BUSINESS RATIONALE SNAPSHOT OF STENDÖRREN ÖREBRO VÄSTERÅS ESKILSTUNA UPPSALA STOCKHOLM BACKGROUND Founded in 1995 as the commercial property arm of Kvalitena Separated from Kvalitena in November 2014 and thereafter listed on Nasdaq First North Premier In the process of changing listing venue to Nasdaq Stockholm LINKÖPING SÖDERTÄLJE PROPERTY PORTFOLIO Property value of SEK 6.5bn distributed over approx. 603,000 sq.m Commercial real estate portfolio located in Greater Stockholm region consisting of 100 properties with a focus on light industrial and logistics The Greater Stockholm region is one of the fastest growing regions in Europe both in terms of population and economic GÖTEBORG JÖNKÖPING FINANCIALS LTM Q rental income of SEK 453m and a NOI of SEK 316m, resulting in a profit from property management of SEK 161m MALMÖ 5

6 UPPSALA PROPERTY PORTFOLIO 80% WITHIN THE GREATER STOCKHOLM REGION ENKÖPING VÄSTERÅS STORSTOCKHOLM ESKILSTUNA STOCKHOLM SÖDERTÄLJE FLEN 6 PRESENTATION CARNEGIE REMIUM 15 FEBRUARY NOVEMBER 23,

7 COMPANY PRESENTATION & BUSINESS RATIONALE ORGANISATION - CREATED FOR GROWTH 40 co-workers BOARD CEO MANAGEMENT TEAM HAVING STAFF IN-HOUSE HELPS US CREATE LONG- TERM RELATIONSHIPS WITH OUR TENANTS AND ENSURES THE DELIVERY MARKETING AND LEASING DEPARTMENT PROPERTY DEPARTMENT FINANCE DEPARTMENT PROJECT MANAGEMENT ASSET MANAGEMENT 7

8 COMPANY PRESENTATION & BUSINESS RATIONALE PROJECT DEVELOPMENT - APPROX MSEK PROPERTY DEVELOPMENT MAX 15% OF BALANCE SHEET OUR PORTFOLIO OF CASH FLOW YIELDING PROPERTIES CAN SUP- PORT A PROJECT PORTFOLIO OF BETWEEN 15% OF TOTAL PORTFOLIO VALUE CASH FLOW GENERATED MIN 85% OF BALANCE SHEET ADVANTAGES Having a project management team in-house is a great strength for the running business Project development creates value on the balance sheet Likely to create 2-6 % annual growth from project developments Zoning planning of land requires less equity in relation to created value Substantial ROE potential 8

9 COMPANY PRESENTATION & BUSINESS RATIONALE POPULATION GROWTH REGIONAL CITIES INCL. SURROUNDING MUNICIPALITIES 35,0% 30,0% 25,0% 100,0% 90,0% 80,0% 70,0% WHY FOCUSING ON STOCKHOLM? 20,0% 15,0% 60,0% 50,0% 40,0% 10,0% 30,0% 5,0% 20,0% 10,0% 0,0% 0,0% Stockholm Malmö Göteborg Halmstad Umeå Örebro Växjö Jönköping Västerås Linköping Borås Eskilstuna Norrköping Kristianstad Kalmar Trollhättan Gävle Falun Karlstad Skövde Source: Evidens 9

10 COMPANY PRESENTATION & BUSINESS RATIONALE EMPLOYMENT GROWTH IN THE STOCKHOLM REGION Service sector Total employment Index Year Source: Evidens 10

11 COMPANY PRESENTATION & BUSINESS RATIONALE LOGISTICS IN THE GREATER STOCKHOLM REGION 16,0% 11,0% Vacancy Yield Stibor 90 AVERAGE RENT INCREASE IN STENDÖRREN S PORTFOLIO 15 % 6,0% 1,0% Annual rent, msek ,0% Rent Inflation ,0% ,0% ,0% EXISTING RENT RENT AFTER RENEGOTIATION ,0% Source: Newsec 11

12 PART 2 FINANCIAL REPORT FULL YEAR 2017

13 RENTAL VALUE: 453 MSEK NET PROFIT: 396 MSEK LETTABLE AREA: M 2 EQUITY RATIO: 36 % NET OPERATING INCOME: 316 MSEK PROPERTY VALUE: MSEK LTV: 56 % 13

14 FINANCIAL REPORT FULL YEAR Q Q Q Q Market value, msek No. properties Lettable area, sq m NOI running 12 m*, msek Equity, msek Senior debt, msek Bond, msek Swaps/caps** - nominal value, msek Market First North Premier First North Premier First North First North Premier Premier Market cap, msek *This is not a forecast of the expected outcome, but Stendörren s estimated earnings running 12m. **In February 2017 all swaps were terminated and replaced by 1,8 Bn SEK of intetest caps leading to an annualized interest saving of 21 MSEK and improvement of annualized ICR to 2,6x. 14

15 FINANCIAL REPORT FULL YEAR 2017 KEY METRICS EQUITY RATIO, % ICR, x ROE (AVERAGE), % 40 3,0 50 2, ,0 1,5 1, , Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 0,0 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q

16 FINANCIAL REPORT FULL YEAR 2017 INCOME BUILD-UP Q1 - Q Rental value Vacancy Property expenses Central admin Financing costs Value changes Taxes Net income NOI Prop Mgmnt

17 FINANCIAL REPORT FULL YEAR 2017 PORTFOLIO BUILD UP - ACTUALS ,0% ,0% ,0% ,5% 6,5% 6,0% 5,9% 6,3% 5,8% 6,2% 5,7% 6,1% 5,6% 6,0% 6,0% 5,9% 5,4% 5,4% 5,3% 6,0% ,0% ,0% ,0% - Q1 '16 Q2 '16 Q3 '16 Q4 '16 Q1 '17 Q2 '17 Q3 '17 Q4 '17 2,0% Property value Non-earning assets Yield, 12m avg Yield excl non-earning, 12m avg 17

18 FINANCIAL REPORT FULL YEAR 2017 KEY METRICS OVER TIME AND FINANCIAL RATIOS 75,0% 65,0% 55,0% LTV (property level) NOI Excess Ratio LTV 3,00 2,80 2,60 2,40 2,20 KEY FINANCIAL RATIOS JAN DEC 2017 JAN DEC 2016 Excess Ratio (NOI/Rental income), % 70% 68% ROE (12m average), % 18% 35% 45,0% 35,0% 25,0% ROE Equity Ratio ICR (right hand scale) 2,00 1,80 1,60 1,40 1,20 Avrg. Interest fixing, years 2,2 2,2 Avrg. Debt maturity, years 1) 2,4 3,5 Equity Ratio, % 36% 34% LTV, % 56% 57% 15,0% Q2 15 Q3 15 Q4 15 Q1 '16 Q2 '16 Q3 '16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 1,00 LTV (property level), % 45% 46% ICR, x 2,5 2,3 ICR (right hand scale) LTV (property level) NOI Excess Ratio ROE LTV Equity Ratio 1) Following changes in the debt portfolio in early 2018 Average Debt Maturity is approx. 3,0 years 18

19 FINANCIAL REPORT FULL YEAR 2017 KEY METRICS GROWING PROPERTY PORTFOLIO DEBT SERVICE CAPACITY SOLID BALANCE SHEET Property value, msek Net operating income, msek Equity NOI LTM 2) Equity 27% 28% % Equity ratio 35% 33% % 36% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q Q1 Q2 Q3 Q4Q1 Q2 Q3 Q4Q1 Q2 Q3 Q Lettable area, 000 sq m Interest coverage ratio 1) Loan to value ,0 2,5 2,3 2,2 2,2 2,2 2,2 2,3 2,3 2,4 2,5 2,5 68% 69% 69% 64% 63% 60% 59% 58% 58% 56% 56% 56% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q ) Profit from property management before financial expenses in relation to financial expenses, 2) Last twelve months 19

20 FINANCIAL REPORT FULL YEAR 2017 SHARE VALUE AND KEY EQUITY RATIOS , ,47 KEY EQUITY RATIOS JAN DEC 2017 JAN DEC ,86 68,00 80,02 60,02 Share price, SEK 68,0 68,5 Equity per share, SEK 86,9 74,4 EPRA NNNAV per share, SEK 94,5 80,8 Cashflow per share, SEK 7,8-1,3 40,02 Market cap, MSEK Other ratios 200 Q1 15 Q2 15 Q3 15 Q4 15 Q1 '16 Q2 '16 Q3 '16 Q4 '16 Q1 '17 Q2 '17 Q3 '17 Q4 '17 20,02 Average number of employees during the period Book equity EPRA NNNAV/Share Book Equity/Share Share price 20

21 FINANCIAL REPORT FULL YEAR 2017 DEBT FUNDING OVERVIEW DISTRIBUTION OF DEBT MSEK - Senior debt, 78 % Bond, 21 % Seller notes, 1 % > 2022 SENIOR DEBT MSEK - Interest fixing & Interest rate derivatives (average interest maturity 2,4 years) Total debt maturity (average debt maturity 2,2 years) Refinanced early 2018 (new debt maturity approx. 3 years) Bond Swedbank, 69% Danske Bank, 17% Handelsbanken, 6% Sörmlands Sparbank, 7% Sparbanken i Enköping, 1% 21

22 FINANCIAL REPORT FULL YEAR 2017 POST Q4 EVENTS In January, a tap issue of 350 msek was completed within the framework of Stendörrens existing bond frame with approx. 2.5 years remaining duration. The bond runs with a coupon rate of Stibor 90 plus 4,0% and the issue was made at a market price of 100 percent of the nominal value. Maturing bond of 430 msek repaid in February using additional secured senior financing. 15-year lease signed with Eskilstuna Kommunfastigheter consisting over 4,400 sq m warehouse space in Svista industrial area, Eskilstuna. 22

23 PART 3 GROWTH CONTINUE

24 GROWTH CONTINUE OUR PROPERTY PORTFOLIO IS LOCATED WHERE SWEDEN IS GROWING THE MOST UPPSALA VÄSTERÅS ÖREBRO ESKILSTUNA STOCKHOLM SÖDERTÄLJE UPPSALA LINKÖPING VÄSTERÅS ENKÖPING STORSTOCKHOLM GÖTEBORG JÖNKÖPING ESKILSTUNA STOCKHOLM SÖDERTÄLJE FLEN MALMÖ 24

25 GROWTH CONTINUE WHERE IN STOCKHOLM REGION DO WE WANT TO GROW? THE REGION HAS SIGNIFICANTLY HIGHER GROWTH THAN THE REST OF SWEDEN UPPSALA VÄSTERÅS ÖREBRO ESKILSTUNA STOCKHOLM SÖDERTÄLJE LINKÖPING GÖTEBORG JÖNKÖPING Existing portfolio Possible expansion MALMÖ 25

26 GROWTH CONTINUE STENDÖRREN TOWARDS MAIN MARKET Mid cap Broader investor base Improved access to capital markets Significantly improved stock liquidity Improved attention from analysts Expected improved financing terms Improved processes and internal control 26

27 Q&A 27

28 FOR FURTHER INFORMATION PLEASE CONTACT: CALENDAR: Annual report Q1 report Q2 report Q3 report Q4 report FREDRIK BRODIN, CEO MAGNUS SUNDELL, CFO Apr, May, Jul, Nov, Feb, 2019