STENDÖRREN FASTIGHETER AB SECOND QUARTER 2023
STENDÖRREN
INTRODUCTION
BUSINESS IDEA, MARKET OPPORTUNITY AND FINANCIAL OBJECTIVES
BUSINESS
IDEA
Stendörren creates profitable growth in net asset value by managing, developing and acquiring properties
Focus on logistics, warehouse and light industrial properties, primarily within the Stockholm region and other markets that are considered attractive over time
In addition, Stendörren develops residential building rights in the existing portfolio, for in-house development and management
MARKET
OPPORTUNITY
The properties are strategically located in growth areas (population and economic), mainly in Greater Stockholm and the Mälardalen region
Growing e-commerce increases the demand for logistic and warehouse properties, especially in urban locations, to meet consumer demand on short delivery times
Rent levels are increasing, as demand for logistics and light industrial premises in urban locations increases, while supply is decreasing due to conversions to other use
FINANCIAL
OBJECTIVES
Return on equity of at least 12%
EPRA NAV growth of at least 15 % p.a.
Interest coverage ratio of at least 2.0x
Equity ratio shall be 35 % (never lower than 20 %)
- Investor Presentation
Picture: Almnäs Logistics Development
OPERATIONAL HIGHLIGHTS
Excluding bankruptcy of second
largest tenant Exploria
NET LETTING (MSEK)
✓ STRONG RENTAL INCOME AND NOI GROWTH | |
• | Full effect from CPI-related rent increase in lease agreements with |
effect from and including Q1 2023 | |
• | 25% y-o-y NOI increase, 15% y-o-y like for like |
Leasing new construction
8
14
14
16 15 17
8
7
5
✓ STRONG LETTING |
1
1
• | Continued strong renegotiation of lease agreements - 21% average |
increase in rent on renegotiated leases in H1 2023 | |
• | Strong net letting during last quarters - vacancy 5% |
-2
-11
-4
✓ CONTINUED STRONG SURPLUS RATIO |
DEVELOPMENT |
• 76% as of Q2 (12 month average) |
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 |
2020 | 2021 | 2022 | 2023 |
SURPLUS RATIO (%)
- STRONG TRACTION WITHIN PROJECT DEVELOPMENT
• ~30.000 sqm completed during H1 2023 | |
• | Customer driven new construction started of 2,300 sqm |
• | Ongoing and recently completed projects are expected to add |
approximately SEK 80m in net operating income, depending on the |
72
69 70
67 66 67 67
74 73 73 74 74
75 76 75 75 75 76
pace of leasing and completion |
Q1 | Q2 Q3 Q4 | Q1 | Q2 Q3 Q4 | Q1 | Q2 Q3 Q4 | Q1 | Q2 Q3 Q4 | Q1 | Q2 |
2019 | 2020 | 2021 | 2022 | 2023 |
- Investor Presentation
Picture: Båglampan 25 development
FINANCIAL HIGHLIGHTS
- REVALUATIONS EFFECTS FINANCIAL KEY FIGURES NEGATIVELY
- LTM SEK -508m on property portfolio
- INTEREST-RATERESILIANCE
- Approx 80% of interest-bearing debt hedged with a
"Stibor" of 1.50% - Average maturity of hedges 2.5 years
- Approx 80% of interest-bearing debt hedged with a
- ENERGY PRICE RESILIANCE
- ~100% of forecasted consumption 2023, ~65% for 2024 fixed at "normal" / "pre Ukraine war" cost levels
- ACTIVE BALANCE SHEET MANAGEMENT
- ~SEK 288m (out of SEK 800m) of hybrid bonds repurchased
- Still strong liquidity SEK 703m
- GREEN- AND SUSTAINABILITY LINKED LOANS
- 6% Green loans
- 34% Sustainability Linked Loans
- Investor Presentation
ROE (%)
26 26 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
20 | 22 | 18 | ||||||||||||||||||||||||||||||||||||||||||||||||||
15 | 14 | 16 | ||||||||||||||||||||||||||||||||||||||||||||||||||
9 | 9 | 10 | 8 | 7 | 7 | 9 | ||||||||||||||||||||||||||||||||||||||||||||||
12% | 5 | 1 | -3 | |||||||||||||||||||||||||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | |||||||||||||||||||||||||||||||||||
2019 | 2020 | 2021 | 2022 | 2023 |
NAV GROWTH (%)
37 | 35 | |||||||||||||||||||||||||||||||||||||||||||||||||||
29 | 25 | |||||||||||||||||||||||||||||||||||||||||||||||||||
15 | 17 | 13 | 22 | 18 | ||||||||||||||||||||||||||||||||||||||||||||||||
15% | 11 | 11 | 10 | 9 | 9 | 12 | 1 -1-5 | |||||||||||||||||||||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | |||||||||||||||||||||||||||||||||||
2019 | 2020 | 2021 | 2022 | 2023 |
Picture: Librobäck 21:3 development
SNAPSHOT OF STENDÖRREN
PROPERTY VALUE1 | RENTAL VALUE2 | NOI YIELD3 | LTV4 |
SEK | SEK | 6.0% | 49% | |||
12.5 bn | 860 m | |||||
LEASE DURATION5 | NAV6 | LETTABLE AREA1 | BUILDING RIGHTS1 | |||
3.8 years | SEK | SQ.M. | SQ.M. | |||
4,902 million | 804,000 | 658,000 | ||||
- Property portfolio as per June 30, 2023
- Estimated earnings capacity as of July 1, 2023
- Excluding projects and land, 12 months average
- Interest bearing debt in relation to total assets
- Average unexpired lease term - economically weighted
- Actual NAV
- Investor Presentation
Picture: Almnäs Development Phase I
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Disclaimer
Stendörren Fastigheter AB published this content on 05 September 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 September 2023 11:16:07 UTC.
