PRESENT A TION CARNEGIE AGENDA PART 1 COMPANY PRESENTATION - - PowerPoint PPT Presentation

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PRESENT A TION CARNEGIE AGENDA PART 1 COMPANY PRESENTATION - - PowerPoint PPT Presentation

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FEBRUARY 23, 2018 PRESENT A TION CARNEGIE AGENDA PART 1 COMPANY PRESENTATION & BUSINESS RATIONALE PART 2 FINANCIAL REPORT FULL YEAR 2017 PART 3 GROWTH CONTINUE 2 PRESENTATION CARNEGIE | FEBRUARY 23, 2018 PART 1 COMPANY

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SLIDE 1

PRESENT A TION CARNEGIE

FEBRUARY 23, 2018

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PRESENTATION CARNEGIE | FEBRUARY 23, 2018 2

AGENDA

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

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PART 1 COMPANY PRESENTATION & BUSINESS RATIONALE

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PRESENTATION CARNEGIE | FEBRUARY 23, 2018 4

COMPANY PRESENTATION & BUSINESS RATIONALE

BUSINESS IDEA AND OBJECTIVES

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%

BUSINESS IDEA

Stendörren Fastigheter creates long-term growth and value creation by acquiring, developing and managing properties within the greater Stockholm region, with focus

  • n the segments warehouse

and light industrial.

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PRESENTATION CARNEGIE | FEBRUARY 23, 2018 5

MALMÖ GÖTEBORG JÖNKÖPING LINKÖPING UPPSALA VÄSTERÅS ÖREBRO ESKILSTUNA SÖDERTÄLJE STOCKHOLM

COMPANY PRESENTATION & BUSINESS RATIONALE

  • 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
  • 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

  • LTM Q4 2017 rental income of SEK 453m and a NOI of SEK 316m,

resulting in a profjt from property management of SEK 161m

SNAPSHOT OF STENDÖRREN

BACKGROUND PROPERTY PORTFOLIO FINANCIALS

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PRESENTATION CARNEGIE | FEBRUARY 23, 2018 6

SÖDERTÄLJE ESKILSTUNA FLEN VÄSTERÅS ENKÖPING UPPSALA STOCKHOLM

STORSTOCKHOLM

6 PRESENTATION REMIUM | 15 NOVEMBER 2017

80%

WITHIN THE GREATER STOCKHOLM REGION

PROPERTY PORTFOLIO

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PRESENTATION CARNEGIE | FEBRUARY 23, 2018 7

ORGANISATION - CREATED FOR GROWTH

CEO PROPERTY DEPARTMENT FINANCE DEPARTMENT

40

co-workers

ASSET MANAGEMENT MARKETING AND LEASING DEPARTMENT PROJECT MANAGEMENT MANAGEMENT TEAM BOARD ”HAVING STAFF IN-HOUSE HELPS US CREATE LONG- TERM RELATIONSHIPS WITH OUR TENANTS AND ENSURES THE DELIVERY”

COMPANY PRESENTATION & BUSINESS RATIONALE

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PRESENTATION CARNEGIE | FEBRUARY 23, 2018 8

PROJECT DEVELOPMENT - APPROX. 1 000 MSEK

”OUR PORTFOLIO OF CASH FLOW YIELDING PROPERTIES CAN SUP- PORT A PROJECT PORTFOLIO OF BETWEEN 15% OF TOTAL PORTFOLIO VALUE”

PROPERTY DEVELOPMENT MAX 15% OF BALANCE SHEET 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

COMPANY PRESENTATION & BUSINESS RATIONALE

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PRESENTATION CARNEGIE | FEBRUARY 23, 2018 9

POPULATION GROWTH 1995 - 2016 REGIONAL CITIES INCL. SURROUNDING MUNICIPALITIES

COMPANY PRESENTATION & BUSINESS RATIONALE

0,0% 5,0% 10,0% 15,0% 20,0% 25,0% 30,0%

Stockholm Malmö Göteborg Halmstad Umeå Örebro Växjö Jönköping Västerås Linköping Borås Eskilstuna Norrköping Kristianstad Kalmar Trollhättan Gävle Falun Karlstad Skövde

35,0% 0,0% 10,0% 20,0% 30,0% 40,0% 50,0% 60,0% 80,0% 70,0% 90,0% 100,0%

Source: Evidens

WHY FOCUSING ON STOCKHOLM?

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PRESENTATION CARNEGIE | FEBRUARY 23, 2018 10

90 110 130 150 170 190 210 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Year Index

EMPLOYMENT GROWTH IN THE STOCKHOLM REGION 1995 - 2016

Total employment Service sector

COMPANY PRESENTATION & BUSINESS RATIONALE

Source: Evidens

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PRESENTATION CARNEGIE | FEBRUARY 23, 2018 11

LOGISTICS IN THE GREATER STOCKHOLM REGION

1,0% 6,0% 11,0% 16,0% 2010 2011 2012 2013 2014 2015 2016 2017

Vacancy Yield Stibor 90

  • 2,0%
3,0% 8,0% 13,0% 18,0% 610 620 630 640 650 660 670 680 2010 2011 2012 2013 2014 2015 2016 2017

Rent Infmation

EXISTING RENT RENT AFTER RENEGOTIATION 10000 20000 30000 40000 50000 60000 AVERAGE RENT INCREASE IN STENDÖRREN’S PORTFOLIO

15 %

COMPANY PRESENTATION & BUSINESS RATIONALE

Annual rent, mSEK

Source: Newsec

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PART 2 FINANCIAL REPORT FULL YEAR 2017

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PRESENTATION CARNEGIE | FEBRUARY 23, 2018 13 NET PROFIT:

396 MSEK

PROPERTY VALUE:

6 494 MSEK

RENTAL VALUE:

453 MSEK

NET OPERATING INCOME:

316 MSEK

EQUITY RATIO:

36 %

LETTABLE AREA:

603 000 M2

LTV:

56 %

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PRESENTATION CARNEGIE | FEBRUARY 23, 2018 14

FINANCIAL REPORT FULL YEAR 2017

2014 - 2017

Q4 2017 Q4 2016 Q4 2015 Q4 2014 Market value, mSEK 6 494 5 817 4 889 1 962

  • No. properties

100 95 81 27 Lettable area, sq m 603 000 612 000 585 000 252 000 NOI running 12 m*, mSEK 329 316 302 - 307 135 Equity, mSEK 2 399 2 054 1 489 724 Senior debt, mSEK 2 914 2 653 2 621

  • Bond, mSEK

790 750 575

  • Swaps/caps** - nominal value, mSEK

1 800 1 451 1 451

  • Market

First North Premier First North Premier First North Premier First North Premier Market cap, mSEK 1 878 1 996 1 381

  • *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.

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PRESENTATION CARNEGIE | FEBRUARY 23, 2018 15

KEY METRICS

FINANCIAL REPORT FULL YEAR 2017

ICR, x EQUITY RATIO, % ROE (AVERAGE), %

10 20 30 40 50 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 0,0 0,5 1,0 1,5 2,0 2,5 3,0 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 10 20 30 40 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17

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PRESENTATION CARNEGIE | FEBRUARY 23, 2018 16

498 45 138 51 104 362 126 396

100 200 300 400 500 600

INCOME BUILD-UP Q1 - Q4 2017

Rental value Vacancy Property expenses Central admin Financing costs Value changes Taxes Net income NOI 316 Prop Mgmnt 161

FINANCIAL REPORT FULL YEAR 2017

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PRESENTATION CARNEGIE | FEBRUARY 23, 2018 17 4826 5 380 5 537 5 817 5 752 5 880 6039 6494 380 504 520 571 495 507 814 994 6,0% 5,9% 5,8% 5,7% 5,6% 5,4% 5,4% 5,3% 6,5% 6,5% 6,3% 6,2% 6,1% 6,0% 6,0% 5,9% 2,0% 3,0% 4,0% 5,0% 6,0% 7,0% 8,0% 9,0%

  • 1 000

2 000 3 000 4 000 5 000 6 000 7 000 Q1 '16 Q2 '16 Q3 '16 Q4 '16 Q1 '17 Q2 '17 Q3 '17 Q4 '17

PORTFOLIO BUILD UP - ACTUALS

FINANCIAL REPORT FULL YEAR 2017

Yield, 12m avg Property value Non-earning assets Yield excl non-earning, 12m avg

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PRESENTATION CARNEGIE | FEBRUARY 23, 2018 18

1,00 1,20 1,40 1,60 1,80 2,00 2,20 2,40 2,60 2,80 3,00 15,0% 25,0% 35,0% 45,0% 55,0% 65,0% 75,0% Q2 ´15 Q3 ´15 Q4 ´15 Q1 '16 Q2 '16 Q3 '16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17

NOI Excess Ratio LTV (property level) LTV ROE Equity Ratio

KEY METRICS OVER TIME AND FINANCIAL RATIOS

FINANCIAL REPORT FULL YEAR 2017

ICR (right hand scale)

ICR (right hand scale) NOI Excess Ratio LTV LTV (property level) ROE Equity Ratio

KEY FINANCIAL RATIOS JAN–DEC 2017 JAN–DEC 2016 Excess Ratio (NOI/Rental income), % 70% 68% ROE (12m average), % 18% 35%

  • Avrg. Interest fjxing, years

2,2 2,2

  • Avrg. Debt maturity, years 1)

2,4 3,5 Equity Ratio, % 36% 34% LTV, % 56% 57% LTV (property level), % 45% 46% ICR, x 2,5 2,3

1) Following changes in the debt portfolio in early 2018 Average Debt Maturity is

  • approx. 3,0 years
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PRESENTATION CARNEGIE | FEBRUARY 23, 2018 19

KEY METRICS

FINANCIAL REPORT FULL YEAR 2017

4 129 4 496 4 826 5 537 5 752 6 039 6 494

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2015 2016 2017

35 68 71 72 67 74 77 81 72 79 81 84 48 187 278 290 304 313

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2015 2016 2017

1 186 1 307 1 516 1 899 2 099 2 242 2 399 27% 28% 30% 33% 35% 36% 36%

Q1 Q2 Q3 Q4Q1 Q2 Q3 Q4Q1 Q2 Q3 Q4 2015 2016 2017

532 544 550 585 575 581 602 612 599 591 590 603

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2015 2016 2017

2,0 2,5 2,3 2,2 2,2 2,2 2,2 2,3 2,3 2,4 2,5 2,5

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2015 2016 2017

68% 69% 69% 64% 63% 60% 59% 58% 58% 56% 56% 56%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2015 2016 2017

316

GROWING PROPERTY PORTFOLIO DEBT SERVICE CAPACITY SOLID BALANCE SHEET

LTM 2) NOI Equity ratio Equity Lettable area, ’000 sq m Property value, mSEK Net operating income, mSEK Equity Interest coverage ratio 1) Loan to value

1) Profjt from property management before fjnancial expenses in relation to fjnancial expenses, 2) Last twelve months

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PRESENTATION CARNEGIE | FEBRUARY 23, 2018 20

SHARE VALUE AND KEY EQUITY RATIOS

Book equity

KEY EQUITY RATIOS JAN–DEC 2017 JAN–DEC 2016 Share price, SEK 68,0 68,5 Equity per share, SEK 86,9 74,4 EPRA NNNAV per share, SEK 94,5 80,8 Cashfmow per share, SEK 7,8

  • 1,3

Market cap, MSEK 1 878 1 892 Other ratios Average number of employees during the period 35 24

Share price Book Equity/Share EPRA NNNAV/Share

1 186 1 284 1 307 1 489 1 516 1 808 1 899 2054 2099 2106 2242 2399 68,00 94,47 20,02 40,02 60,02 80,02 100,02 200 700 1 200 1 700 2 200 2 700 Q1 ´15 Q2 ´15 Q3 ´15 Q4 ´15 Q1 '16 Q2 '16 Q3 '16 Q4 '16 Q1 '17 Q2 '17 Q3 '17 Q4 '17 86,86

FINANCIAL REPORT FULL YEAR 2017

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PRESENTATION CARNEGIE | FEBRUARY 23, 2018 21

DEBT FUNDING OVERVIEW

FINANCIAL REPORT FULL YEAR 2017

DISTRIBUTION OF DEBT

  • 3 723 MSEK -

Senior debt, 78 % Bond, 21 % Seller notes, 1 % SENIOR DEBT

  • 2 914 MSEK -

Swedbank, 69% Danske Bank, 17% Handelsbanken, 6% Sörmlands Sparbank, 7% Sparbanken i Enköping, 1% Total debt maturity (average debt maturity 2,2 years) Interest fjxing & Interest rate derivatives

(average interest maturity 2,4 years)

200 400 600 800 1 000 1 200 1 400 1 600 1 800 2 000 2018 2019 2020 2021 2022> 2022 Bond Refjnanced early 2018 (new debt maturity approx. 3 years)

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PRESENTATION CARNEGIE | FEBRUARY 23, 2018 22

FINANCIAL REPORT FULL YEAR 2017

POST Q4 EVENTS

In January, a tap issue of 350 mSEK was completed within the framework

  • f Stendörrens existing bond frame

with approx. 2.5 years remaining

  • duration. The bond runs with a cou-

pon rate of Stibor 90 plus 4,0% and the issue was made at a market price

  • f 100 percent of the nominal value.

Maturing bond of 430 mSEK repaid in February using additional secured senior fjnancing. 15-year lease signed with Eskilstuna Kommunfastigheter consisting

  • ver 4,400 sq m warehouse space

in Svista industrial area, Eskilstuna.

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PART 3 GROWTH CONTINUE

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PRESENTATION CARNEGIE | FEBRUARY 23, 2018 24

MALMÖ GÖTEBORG JÖNKÖPING LINKÖPING UPPSALA VÄSTERÅS ÖREBRO ESKILSTUNA SÖDERTÄLJE STOCKHOLM SÖDERTÄLJE ESKILSTUNA FLEN VÄSTERÅS ENKÖPING UPPSALA STOCKHOLM STORSTOCKHOLM

OUR PROPERTY PORTFOLIO IS LOCATED WHERE SWEDEN IS GROWING THE MOST

GROWTH CONTINUE

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PRESENTATION CARNEGIE | FEBRUARY 23, 2018 25

MALMÖ GÖTEBORG JÖNKÖPING LINKÖPING UPPSALA VÄSTERÅS ÖREBRO ESKILSTUNA SÖDERTÄLJE STOCKHOLM

WHERE IN STOCKHOLM REGION DO WE WANT TO GROW?

Existing portfolio Possible expansion

THE REGION HAS SIGNIFICANTLY HIGHER GROWTH THAN THE REST OF SWEDEN

GROWTH CONTINUE

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PRESENTATION CARNEGIE | FEBRUARY 23, 2018 26

Broader investor base

Improved access to capital markets

Signifjcantly improved stock liquidity

Improved attention from analysts

Expected improved fjnancing terms

Improved processes and internal control

Mid Cap

Mid cap

STENDÖRREN TOWARDS MAIN MARKET

GROWTH CONTINUE

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PRESENTATION CARNEGIE | FEBRUARY 23, 2018 27

Q&A

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PRESENTATION CARNEGIE | FEBRUARY 23, 2018 28

MAGNUS SUNDELL, CFO magnus.sundell@stendorren.se 08 - 518 331 02 FREDRIK BRODIN, CEO fredrik.brodin@stendorren.se 08 - 518 331 01

FOR FURTHER INFORMATION PLEASE CONTACT: CALENDAR:

Annual report 24 Apr, 2018 Q1 report 9 May, 2018 Q2 report 20 Jul, 2018 Q3 report 15 Nov, 2018 Q4 report 22 Feb, 2019