Interim report Anders Jarl, CEO and Arvid Liepe, CFO Ulrika - PowerPoint PPT Presentation

Wihlborgs Fastigheter AB Interim report Anders Jarl, CEO and Arvid Liepe, CFO Ulrika Hallengren January – March, 2018

Summary January-March 2018 • Rental income increased by 22 percent to SEK 668 million (549) • Operating surplus increased by 19 percent to SEK 460 million (388) • Income from property management increased by 25 percent to SEK 325 million (261) • Result for the period amounts to SEK 303 million (289), corresponding to earnings per share of SEK 3.94 (3.76) 2

Income statement SEK m Q1 2018 Q1 2017 Percent Rental income 668 549 + 22 460 388 + 19 Operating surplus Income property management 325 261 + 25 46 Change in value of properties 56 17 Change in value of derivatives 54 Pre-tax profit 388 371 Profit for the period 303 289 3

Income statement, comparing accounting methods SEK m Q1 2018 Q1 2017 Rental income 668 549 460 388 Operating surplus Surplus ratio, % 69 71 Old accounting method 648 Rental income 541 Operating surplus 460 388 Surplus ratio, % 71 72 4

Net letting SEK m Q1 2018 Q1 2017 New leases 53 62 Terminations 35 39 Net leasing 18 23 5

Net letting, quarterly New leases Terminations Net 100 80 60 40 20 SEK m 0 -20 -40 -60 -80 -100 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 6

Rental growth for the entire property stock 01-04-2018 01-04-2017 SEK m SEK m Percent Rental value 2,868 2,391 +19.9 Rental income 2,668 2,189 +21.9 Rental growth like-for-like* 01-01-2018 01-01-2017 SEK m SEK m Percent Rental value 2,469 2,391 + 3.3 Rental income 2,305 2,189 + 5.3 *Excluding Projects & Land 7

Portfolio - Office properties 1 April, 2018 Market value Op. surplus, Occupancy Running Yield fully SEK m SEK m 1 rate, % yield, % let, % Malmö 14,170 664 95 4.7 5.0 Helsingborg 4,639 239 94 5.1 5.6 Lund 6,010 317 93 5.3 5.8 Copenhagen 6,781 415 94 6.1 6.6 ¹ excluding property admin. Total 31,600 1,635 94 5.2 5.6 ¹ excluding property admin. 8

Portfolio - Industrial/Warehousing 1 April, 2018 Market value Op. surplus, Occupancy Running Yield fully SEK m SEK m 1 rate, % yield, % let, % Malmö 2,285 164 94 7.2 7.7 Helsingborg 2,950 212 90 7.2 8.3 Lund 149 10 84 6.7 8.3 Copenhagen 439 33 88 7.5 8.8 Total 5,823 419 91 7.2 8.1 ¹ excluding property admin. 9

Portfolio the entire property stock 1 April, 2018 Market value Op. surplus, Occupancy Running Yield fully SEK m SEK m 1 rate, % yield, % let, % Total excluding 37,422 2,054 94 5.5 6.0 Projects & Land Total Wihlborgs 39,396 2,067 93 5.2 5.8 ¹ excluding property admin. 10

Solid customers Axis City of Helsingborg City of Malmö Danske Bank 21 % Försäkringskassan of rental income SAAB Skåne Regional Council Swedish Tax Agency ÅF Qlik 20 % Governmental tenants 11

Changes in Investment Properties SEK m Carrying amount 1 January 2018 38,612 Acquisitions 149 Investments 282 Properties sold 0 Changes in value 46 Currency translations 307 Carrying amount 31 March 2018 39,396 12

Increased value in the portfolio 40 000 35 000 30 000 25 000 SEK m 20 000 15 000 10 000 5 000 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Q1 2018 13

A focused portfolio in a growing region Total SEK 39.4 billion 546,000 m 2 20 220,000 m 2 18 17 591,000 m 2 45 728,000 m 2 Percent of the market value 14

Consolidated balance sheet, SEK m 31-03-2018 31-03-2017 Investment properties 39,396 33,217 Other fixed assets 338 294 185 173 Current receivables Liquid assets 208 131 Total assets 40,217 33,815 Equity 13,913 11,752 Deferred tax liability 3,055 2,442 Borrowings 21,145 17,603 Derivatives 926 1,090 Other long-term liabilities 55 53 Current liabilities 1,033 875 Total equity and liabilities 40,127 33,815 15

Key figures 31-03-2018 31-03-2017 Equity/assets ratio, percent 34.7 34.8 Leverage properties, percent 53.7 53.0 Interest coverage ratio, multiple 3.6 3.2 Surplus ratio, percent 69 71 Per share, SEK Equity 22 percent tax 181.03 152.91 Equity 0 percent tax 220.77 184.68 EPRA net asset value 232.82 198.86 Earnings per share 3.94 3.76 EPRA EPS 3.90 3.07 16

EPRA net asset value Average growth: 19 percent Per share 250 200 150 SEK 100 50 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 Q1 2018 17

Current financing, March 2018 Bonds 23 % Bank loans 46 % Danish mortgage loans 31 % 18

Stable financial position Loan-to-value % Equity/Assets % 35,0 65,0 60,0 30,0 55,0 50,0 45,0 25,0 Interest coverage, multiple 4,0 3,5 3,0 2,5 Financial targets 2,0 1,5 1,0 Max. loan-to-value 60 % • 0,5 • Min. equity/Assets 30 % 0,0 Min. interest coverage 2.0 multiple • 19

Strong earnings relative to borrowings Borrowings / Operating surplus 12,0 10,0 8,0 Multiple 6,0 4,0 2,0 0,0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Q1 2018 20

Structure of interest and loan maturities INTEREST MATURITY LOAN MATURITY Matures Loan amount Average Credit agreement Utilised, year SEK m interest rate, % SEK m SEK m 2018 8,425 1.24 1,568 1,568 2019 1,519 0.53 10,346 9,361 2020 0 0.00 4,473 3,518 2021 4,000 3.71 375 375 2022 2,000 3.08 0 0 >2022 5,202 3.72 6,325 6,325 Total 21,145 2.44 23,087 21,145 Average fixed interest period: 4.0 years (4.0) Average loan maturity: 6.0 years (6.2) 21

22 sep-06 Fixed interest period and loan maturity mar-07 sep-07 mar-08 sep-08 mar-09 sep-09 mar-10 sep-10 Loan maturity, years mar-11 sep-11 mar-12 sep-12 mar-13 sep-13 mar-14 sep-14 mar-15 sep-15 mar-16 sep-16 mar-17 sep-17 mar-18 0 1 2 3 4 5 6 7 sep-06 mar-07 sep-07 mar-08 sep-08 mar-09 sep-09 Fixed interest period, years mar-10 sep-10 mar-11 sep-11 mar-12 sep-12 mar-13 sep-13 mar-14 sep-14 mar-15 sep-15 mar-16 sep-16 mar-17 sep-17 mar-18 0 1 2 3 4 5 6 7 8

Interest rate sensitivity • Interest bearing debt as of March 2018, SEK 21.1 billion • Interest rate derivatives amounting to SEK 9.5 billion reduces sensitivity % Sensitivity, average interest rate, % 4,0 3,5 3,0 2,5 2,0 1,5 1,0 0,0 0,5 1,0 1,5 2,0 2,5 3,0 Change, market interest, % 23

Investments in progress

Project investment January – March 2018 SEK m Investments 282 Projects in progress 1,607 Invested by period end -908 Remains to invest 699 25

Polisen 5 HELSINGBORG Area: 4,000 sq.m Completion: Q3, 2019 Investment: 182 SEK m 26

Kranen 9 MALMÖ Area: 2,200 sq.m Completion: Q4, 2018 Investment: 114 SEK m 27

Dungen (Gimle 1) MALMÖ Area: 9,000 sq.m Completion: Q1, 2019 Investment: 392 SEK m 28

Sunnanå 12:53 MALMÖ Area: 2,300 sq.m Completion: Q3, 2018 Investment: 66 SEK m 29

Origo (Bure 2) MALMÖ Area: 6,800 sq.m Completion: Q3, 2019 Investment: 238 SEK m 30

Raffinaderiet 5 LUND Area: 1,900 sq.m Completion: Q4, 2019 Investment: 63 SEK m 31

Investments in pipeline

Prisma, Oceanhamnen HELSINGBORG Area: 11,000 sq.m Plan. start: Q2, 2018 33

Ideontorget LUND Area: appr. 20,000 sq.m. Start: TBD 34

Hyllie 2 MALMÖ Area: 20,000 sq.m 35

Summary Growth driven by acquisitions, but also by higher rents, reduced vacancy and new developments Very strong cashflow growth Strong balance sheet maintained Growth continues 2018