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

MAY 9, 2018 PRESENT A TION REMIUM

AGENDA PART 1 – COMPANY PRESENTATION & BUSINESS RATIONALE PART 2 – FINANCIAL REPORT JAN - MAR 2017 PART 3 – GROWTH CONTINUE 2 PRESENTATION REMIUM | MAY 9, 2018

PART 1 COMPANY PRESENTATION & BUSINESS RATIONALE

COMPANY PRESENTATION & BUSINESS RATIONALE BUSINESS IDEA AND OBJECTIVES OVERALL OBJECTIVES BUSINESS IDEA Stendörren Fastigheter Stendörren Fastigheter creates high risk-adjusted FINANCIAL creates long-term growth and return for its shareholders value creation by acquiring, by acquiring, developing OBJECTIVES developing and managing and managing properties. properties within the greater • Demonstrate an average long-term Stockholm region, with focus annual return on equity of at least 12% on the segments warehouse and light industrial. • 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 PRESENTATION REMIUM | MAY 9, 2018

COMPANY PRESENTATION & BUSINESS RATIONALE SNAPSHOT OF STENDÖRREN • Founded in 1995 as the commercial property arm of Kvalitena BACKGROUND • Separated from Kvalitena in November 2014 and thereafter listed on UPPSALA Nasdaq First North Premier VÄSTERÅS ESKILSTUNA STOCKHOLM ÖREBRO SÖDERTÄLJE • Property value of SEK 6.7bn distributed over approx. 609,000 sq.m • Commercial real estate portfolio located in Greater Stockholm region PROPERTY consisting of 101 properties with a focus on light industrial and logistics PORTFOLIO • The Greater Stockholm region is one of the fastest growing regions in LINKÖPING Europe both in terms of population and economic GÖTEBORG JÖNKÖPING • LTM Q1 2018 rental income of SEK 468m and a NOI of SEK 323m, FINANCIALS resulting in a profjt from property management of SEK 165m MALMÖ 5 PRESENTATION REMIUM | MAY 9, 2018

80% UPPSALA PROPERTY PORTFOLIO WITHIN THE GREATER STOCKHOLM REGION ENKÖPING VÄSTERÅS STORSTOCKHOLM ESKILSTUNA STOCKHOLM SÖDERTÄLJE FLEN 6 PRESENTATION REMIUM | MAY 9, 2018

COMPANY PRESENTATION & BUSINESS RATIONALE ORGANISATION - CREATED FOR GROWTH ”HAVING STAFF IN-HOUSE HELPS US CREATE LONG- 41 BOARD TERM RELATIONSHIPS WITH OUR TENANTS AND ENSURES THE DELIVERY” CEO co-workers MANAGEMENT TEAM MARKETING AND LEASING PROPERTY DEPARTMENT FINANCE DEPARTMENT DEPARTMENT PROJECT MANAGEMENT ASSET MANAGEMENT 7 PRESENTATION REMIUM | MAY 9, 2018

COMPANY PRESENTATION & BUSINESS RATIONALE PROJECT DEVELOPMENT - APPROX. 1 000 MSEK ”OUR PORTFOLIO OF CASH FLOW YIELDING PROPERTIES CAN SUP- PROPERTY PORT A PROJECT PORTFOLIO OF DEVELOPMENT MAX 15% OF BETWEEN 15% OF TOTAL BALANCE SHEET PORTFOLIO VALUE” CASH FLOW GENERATED ADVANTAGES MIN 85% OF BALANCE SHEET • 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 PRESENTATION REMIUM | MAY 9, 2018

COMPANY PRESENTATION & BUSINESS RATIONALE POPULATION GROWTH 1995 - 2016 REGIONAL CITIES INCL. SURROUNDING MUNICIPALITIES 35,0% 100,0% WHY 90,0% FOCUSING ON 30,0% 80,0% STOCKHOLM? 25,0% 70,0% 60,0% 20,0% 50,0% 15,0% 40,0% 30,0% 10,0% 20,0% 5,0% 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 PRESENTATION REMIUM | MAY 9, 2018

COMPANY PRESENTATION & BUSINESS RATIONALE EMPLOYMENT GROWTH IN THE STOCKHOLM REGION 1995 - 2016 Service sector Total employment 210 190 170 Index 150 130 110 90 2000 2004 2002 2003 2005 2006 2007 2008 2009 2001 2010 1996 1999 2014 2015 2016 1995 1997 1998 2012 2013 2011 Year Source: Evidens 10 PRESENTATION REMIUM | MAY 9, 2018

COMPANY PRESENTATION & BUSINESS RATIONALE LOGISTICS IN THE GREATER STOCKHOLM REGION Vacancy 16,0% Yield 11,0% Stibor 90 6,0% 1,0% 2010 2011 2012 2013 2014 2015 2016 2017 680 Annual rent/sq m, Stockholm B-location 18,0% 670 Infmation 660 13,0% 650 8,0% 640 630 3,0% 620 610 -2,0% 2010 2011 2012 2013 2014 2015 2016 2017 Source: Newsec 11 PRESENTATION REMIUM | MAY 9, 2018

PART 2 FINANCIAL REPORT JAN - MAR 2017

JAN - MAR 2018 LETTABLE AREA: EQUITY RATIO: 609 000 M 2 36 % RENTAL VALUE: NET PROFIT: 127 MSEK 65 MSEK PROPERTY VALUE: 6 659 MSEK LTV: 56 % NET OPERATING INCOME: 79 MSEK 13 PRESENTATION REMIUM | MAY 9, 2018

FINANCIAL REPORT JAN - MAR 2018 KEY METRICS 18% 36% 2,6x ROE (AVERAGE), % ICR, x EQUITY RATIO, % 3,0 40 50 2,5 40 30 2,0 30 1,5 20 20 1,0 10 10 0,5 0,0 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2016 2017 2018 2016 2017 2018 2016 2017 2018 14 PRESENTATION REMIUM | MAY 9, 2018

FINANCIAL REPORT JAN - MAR 2018 INCOME BUILD-UP Rental value Vacancy Property expenses Central admin Financing costs Value changes Taxes Net income 160 140 13 140 120 49 100 80 17 NOI 79 19 49 (+10%) 60 26 65 40 Prop Mgmnt 34 (+0,8%) 20 (+17%) 0 15 PRESENTATION REMIUM | MAY 9, 2018

FINANCIAL REPORT JAN - MAR 2018 PORTFOLIO BUILD UP - ACTUALS Property value 7 000 9,0% 6659 6494 Project properties 6039 Yield excl project properties, 12m avg 5 880 6 000 8,0% 5 817 5 752 5 537 5 380 Yield, 12m avg 5 000 7,0% 4826 6,5% 6,5% 6,3% 6,2% 6,1% 6,1% 6,0% 6,0% 6,0% 5,9% 5,9% 4 000 6,0% 5,8% 5,7% 5,6% 5,4% 5,4% 5,3% 5,2% 3 000 5,0% 2 000 4,0% 994 990 1 000 3,0% 814 571 520 507 504 495 380 - 2 ,0% Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 16 PRESENTATION REMIUM | MAY 9, 2018

FINANCIAL REPORT JAN - MAR 2018 KEY METRICS OVER TIME AND FINANCIAL RATIOS 75,0% 3,00 KEY FINANCIAL RATIOS JAN–MAR JAN–MAR 2018 2017 2,80 65,0% 2,60 Excess Ratio (NOI/Rental income), % 69% 68% 2,40 ROE (12m average), % 18% 33% 55,0% 2,20 Avrg. Interest fjxing, years 2,0 2,8 45,0% 2,00 Avrg. Debt maturity, years 2,7 2,8 1,80 Equity Ratio, % 36% 36% 35,0% 1,60 LTV, % 56% 57% 1,40 25,0% LTV (property level), % 47% 46% 1,20 ICR, x 2,6 2,3 15,0% 1,00 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 LTV NOI Excess Ratio ICR (right hand scale) Equity Ratio ROE LTV (property level) 17 PRESENTATION REMIUM | MAY 9, 2018

FINANCIAL REPORT JAN - MAR 2018 KEY METRICS GROWING PROPERTY PORTFOLIO DEBT SERVICE CAPACITY SOLID BALANCE SHEET Equity Property value , mSEK Net operating income , mSEK NOI LTM 2) Equity ratio Equity 6 659 36% 36% 400 35% 6 039 2 464 33% 5 752 5 537 2 242 323 313 30% 304 2 099 290 28% 4 826 27% 278 300 4 496 1 899 84 4 129 81 81 79 79 77 187 74 72 72 67 1 516 68 71 200 1 307 1 186 35 100 48 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3Q4 Q1 Q2 Q3Q4 Q1 Q1 Q2Q3Q4 Q1 Q2Q3Q4 Q1 Q2 Q3Q4 Q1 Q1 Q2Q3Q4Q1 Q2Q3Q4Q1 Q2 Q3Q4Q1 2015 2016 2017 2018 2015 2016 2017 2018 2015 2016 2017 2018 Lettable area , ’000 sq m Interest coverage ratio 1) Loan to value 612 603 609 2,3 2,2 2,2 2,2 2,2 2,3 2,3 2,4 2,5 2,5 2,6 68%69%69% 602 599 591 590 2,5 64%63% 585 575 581 60%59%58%58% 2,0 56%56%56%56% 544 550 532 Q1 Q2Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3Q4 Q1 Q1 Q2 Q3Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2015 2016 2017 2018 2015 2016 2017 2018 2015 2016 2017 2018 1) Profjt from property management before fjnancial expenses in relation to fjnancial expenses, 2) Last twelve months 18 PRESENTATION REMIUM | MAY 9, 2018

FINANCIAL REPORT JAN - MAR 2018 SHARE VALUE AND KEY EQUITY RATIOS 2 700 KEY EQUITY RATIOS JAN–MAR JAN–MAR 100,02 2018 2017 93,12 90,39 89,21 2 200 Share price, SEK 79,0 68,0 86,86 83,69 79,00 81,18 80,02 Equity per share, SEK 89,2 86,9 76,69 77,64 75,25 76,25 76,00 70,19 74,36 69,75 68,50 68,00 1 700 68,50 72,25 65,50 EPRA NNNAV per share, 66,35 68,75 65,47 SEK 93,2 90,4 60,02 57,50 52,62 54,90 53,92 Cashfmow per share, SEK 2,5 7,8 1 200 51,56 55,00 2464 50,00 2399 Market cap, MSEK 2 182 1 878 2242 40,02 2106 700 2099 2054 1 899 1 516 1 808 1 489 Other ratios 2 0 ,02 200 Average number of employees during the Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 period 41 39 Book equity EPRA NNNAV/Share Book Equity/Share Share price 19 PRESENTATION REMIUM | MAY 9, 2018

FINANCIAL REPORT JAN - MAR 2018 DEBT FUNDING OVERVIEW 2 500 2 000 1 500 Senior debt, 80,4% 1 000 Bond, 18,5% Seller notes, 1,1% 500 DISTRIBUTION OF DEBT 0 - 3 838 MSEK - 2018 2019 2020 2021 2022 >2022 Interest fjxing & Interest rate derivatives (average interest maturity 2,0 years) SENIOR DEBT Total debt maturity (average debt maturity 2,7 years) - 3 085 MSEK - Swedbank, 77,1% Danske Bank, 16,2% Sörmlands Sparbank, 6,3% Sparbanken i Enköping, 0,4% 20 PRESENTATION REMIUM | MAY 9, 2018

PART 3 GROWTH CONTINUE