Full-year report 2015 February Biljana Pehrsson, CEO Anders Kvist, Deputy CEO and CFO

Transcription

1 Full-year report 2015 February 2016 Biljana Pehrsson, CEO Anders Kvist, Deputy CEO and CFO

2 AGENDA FOURTH QUARTER AND FULL YEAR IN SUMMARY FINANCIAL DEVELOPMENT AND KEY FIGURES BUSINESS PLAN 2020 WITH GROWTH TARGETS QUESTIONS WELCOME 2

3 We have reached all of our targets for 2017 ahead of time and now look towards

4 FOURTH QUARTER IN SUMMARY Gärdet/Frihamnen, a new cluster in Stockholm 89,000 sqm office and hotel space in expansive Norra Djurgårdsstaden Stockholm holdings grew to SEK 11.6 bn (accord. SCB s definition) 86% of Stockholm portfolio in one of our five clusters Continued optimisation of property portfolio Divested non-strategic properties for SEK 116 m during quarter Sales made during January-February 2016 of SEK 282 m Following closings we are present in 66 municipalities (69 as per ) Divested remaining share of 34.5% in Nordic Modular Group to Inter IKEA Investments Corresponds to an Enterprise Value of SEK 1.45 bn, which is SEK 150 m higher than one year ago 4

5 FOURTH QUARTER IN SUMMARY Negative ruling from the Administrative Court of Appeal in the last remaining tax issue Provision and payment made of SEK 1.3 bn Re-structuring of the interest rate swap portfolio Reduced burden of old and expensive swaps Increased hedging of financial net items and thereby stability in our cash flows New organisation in place Expanded organisation within property management, leasing and project development Higher quality and efficiency as long-term owner and landlord 5

6 FOURTH QUARTER AND FULL YEAR IN SUMMARY Net leasing amounted to SEK 7.5 m, an increase from the previous year (5.8) Net leasing during the quarter amounted to SEK 10 m Net leasing in our ten clusters amounted to SEK 10.6 m for the full year and SEK -3.1 m for all other properties Re-negotiations corresponding to a rental value of SEK 54.7 m during the year An average increase in rent of 12% or SEK 6.4 m Rental revenue of SEK 659 m an increase from the fourth quarter last year of 26% (524) thanks to a larger property portfolio and income from early redemption of lease agreements Rental revenue of SEK 2,314 m for the full year an increase of 6% (2,193) A result of a larger property portfolio, positive net effect of one-off invoicing, including early redemption of lease settlements and net effect of renegotiated terms with ABB. Rental revenue per sqm increased from SEK 916 to SEK 986 during the year 6

7 FOURTH QUARTER AND FULL YEAR IN SUMMARY NOI of SEK 1,545 m an increase of 3.6% (1,491) Net result of a larger property portfolio and expanded management organisation Operating surplus margin for the full year of 66.8% Changes in value on properties during the quarter amounted to SEK 303 m SEK 189 m relates to investments SEK 114 m is unrealised value changes The average yield requirement fell from 6.7 to 6.5% Changes in value on properties during the full year amounted to SEK 1,420 m SEK 450 m relates to investments SEK 970 m is unrealised value changes The average yield requirement fell from 7.4 to 6.5% 7

8 FULL YEAR IN SUMMARY 15 transactions have taken place during the year with a combined value of SEK 6.5 bn Strategic properties acquired for SEK 5.8 bn in total possession taken of properties of SEK 7.1 bn Non-strategic properties divested for SEK 700 m 22 municipalities left with profits from sales of SEK 11 m 8

9 FULL YEAR IN SUMMARY Refinancing and new debt of SEK11 bn Kungsleden s Flöden structure, process and culture Internal process project with the aim to increase quality and efficiency in the daily operations 12 core processes defined and implementation started Kungsleden 2020 a new business plan for the years The Board proposes a dividend of SEK 2.00 (1.50) per share 9

10 YEAR 2015 WE DELIVERED ON ALL SET GOALS 10

11 A MORE FOCUSED PROPERTY PORTFOLIO OF HIGHER QUALITY 1 11

12 BOOK VALUE AND LEASABLE AREA 12

13 NEW KUNGSLEDEN 13

14 FINANCIAL DEVELOPMENT AND KEY FIGURES 14

15 INCOME STATEMENT

16 INCOME DEVELOPMENT

17 EQUITY AND FINANCIAL POSITION 17

18 NET DEBT 18

19 LTV RATIO

20 DEBT AND FIXED INTEREST TERM Average remaining maturity: 3.6 years Average fixed interest term: 3.5 years 20

21 AVERAGE INTEREST RATE AND ICR

22 AVERAGE INTEREST RATE LEVEL AND STRUCTURE 22

23 KUNGSLEDEN 2020 NEW BUSINESS PLAN 23

24 BUSINESS CONCEPT & CUSTOMER OFFERING Vision Kungsleden creates attractive premises that enrich people s working days Business concept Kungsleden s long-term business concept is to own, actively manage, improve and develop commercial properties in growth regions in Sweden and deliver attractive total returns. Customer offering Kungsleden will provide attractive and functional premises in the right locations at right price. We will always deliver that extra something. 24

25 OUR LONG-TERM MARKET VIEW The business plan 2020 springs from the following trends: Urbanisation a global mega trend large cities grow even larger and become more active Digitalisation and automatization fewer jobs within production/industry and more jobs within the knowledge and service sector online retail connected society Stockholm an attractive property market Fastest growing capital city in Europe The second largest city in the world in terms of start-up business per capita (Silicon Valley nr 1) in absolute figures nr 4 in the world and nr 1 in Europe Has a diversified business landscape 25

26 RENTAL AND TRANSACTION MARKET Office Stockholm region December 2015 MARKET RENT YIELD Office Gothenburg region December 2015 MARKET RENT YIELD Office Malmö region December 2015 MARKET RENT YIELD 26

27 KUNGSLEDEN S NEW BUSINESS PLAN Business Ethics Social Responsibility Environment Diversity Health & Safety 27

28 KUNGSLEDEN

29 CLUSTERS A KEY PART OF OUR STRATEGY Stockholm more than 42 per cent of total portfolio Kista City 150,000 sqm office Danderyd Kontor 99,000 sqm office Stockholm City East 88,500 sqm office Stockholm City West 35,000 sqm office Västberga 39,000 sqm office, industrial 29

30 KISTA CLUSTER A PART OF KISTA SCIENCE CITY The largest ICT cluster in Europe and third largest in the world Developing into a mixed city district with 70,000 work places and 3,000 4,000 planned homes Total leasable area, sqm: approx. 900,000 Vacancy level 2015: 13-14% Largest tenants in Kista Science City include Ericsson, Tele 2, CGI, Royal Institute of Technology and Stockholm University Kista Galleria mall in central Kista with over 18 million visitors annually 30

31 DANDERYD CLUSTER DANDERYD KONTOR Situated 15 km north of central Stockholm Sweden s highest average income Business climate fourth best in Sweden according to Federation of Swedish Enterprises Total leasable area, sqm: approx. 125,000 Vacancy level 2015: 6-8% Largest tenants in Danderyd include Tobii Technology, Nordea, GE Healthcare, Euro Accident and the Swedish Fortifications Agency Re-development of Dandryds Centrum (shopping mall) from 18,000 sqm retail to 30,000 sqm. Additional office space and homes 31

32 CURRENT PROJECT PROPERTIES TOTAL INVESTMENT VOLUME SEK BN UNTIL 2018 Project Blästern Project Enen 32

33 CURRENT PROJECT PROPERTIES TOTAL INVESTMENT VOLUME SEK BN UNTIL 2018 Project Holar Project Kopparlunden 33

34 OPTIMISATION AND EXPANSION Continued focus on divestment of non-strategic properties for a value of SEK 1 2 bn in order to optimise and raise the quality of the property portfolio A property is determined to be non-strategic for Kungsleden if: It is located in a non-prioritised area It belongs to a non-strategic property category The unit is too small It is too management demanding It doesn t meet Kungsleden s quality standards over time The risk profile is too high in relation to expected return New offensive acquisition strategy in order to reach a target of SEK 40 bn in property value over time without compromising our quality requirements 34

35 KUNGSLEDEN

36 NEW FINANCIAL TARGETS 36

37 QUESTIONS WELCOME! 37