Opportunities in Property Management and Property

Opportunities in Property Management and Property

Opportunities in Property
Management and
Property Development
November 2014
OPPORTUNITIES IN PROPERTY
MANAGEMENT
AND PROPERTY
Y
DEVELOPMENT

Concentrated units in growth
locations within 5 km of the centre
of Stockholm
PROPERTY PORTFOLIO

Prime locations

Modern properties

Concentrated portfolio
Distribution
Property value
Inner city
49 %
Solna
42 %
Hammarby Sjöstad
9%
STRENGTHENING OF GROUP
MANAGEMENT

Charlotta Liljefors Rosell; Director of Property
Management

M.Sc. in Civil Engineering

Previous positions
• AMF Fastigheter, Head of Business Area Office
• Vasakronan, Head of Stockholm City Market Area
• Vasakronan, Letting Manager, Region Stockholm
• Vasakronan, Head of Garnisonen Market Area
• AP Fastigheter
• Royal Institute of Technology, Real Estate Economics
Division
STRENGTHENING OF
GROUP MANAGMENT

Anders Borggren; Director of
Technical Operations

M.Sc. in Civil Engineering

Previous positions
• ISS, Head of Operational
Development, Sweden
• ISS, Property Services, Sweden
and Nordic level
• Arctella, project management
• Kungsfiskaren
• Skanska
PORTFOLIO STRATEGY
– PROVIDING SUPPORT TO OPERATIONS
2014
acc Q3
2013
2012
2011
2010
Contribution from Property
Management
1,077
944
1,230
1,256
1,347
Contribution from Property
Development
200
409
872
401
278
Contribution from
Transactions
135
135
167
173
237
1,412
1,488
2,269
1,830
1,862
SEK 9
SEK 9
SEK 14
SEK 11
SEK 11
SEKm
Contribution from operations
Contribution per share
TRANSACTION
MARKET

Strong demand for
properties in Stockholm

Many buyer categories

Stable or slightly
declining
yields
Masugnen 7, Bromma
Murmästaren 7, Kungsholmen
DEMAND IN STOCKHOLM OFFICE MARKET
– THREE DISTINCT TRENDS
Prime locations in terms of
transport links
Rail connections often required
Modern offices
Comfortable, efficient, flexible,
image, sustainable
Good surrounding services
Range of restaurants and
service, critical mass
DEVELOPMENT – NUMBER OF OFFICE EMPLOYEES
400 000
Office employment Greater
Stockholm
Kontorssysselsättning
StorStockholm
Trend curve, beräknad
calculated tillväxt
on 1.87%
growth
Trendkurva,
1,87%
•
380 000
360 000
•
Number
340 000
320 000
300 000
280 000
Estimated
growth 1.87 %
Corresponding
to approximately
130,000 sqm of
office space per
year
260 000
240 000
220 000
200 000
1993
1998
2003
2008
2013
Source: Statistics Sweden, Swedish National Institute of Economic Research, Catella
POTENTIAL FOR RENT INCREASE
Rent
SEK/sqm
Vacancy rate %
6000
16,0
14,0
5000
12,0
4000
10,0
3000
8,0
6,0
2000
4,0
1000
0
2,0
85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14
Realmedelhyra
average rent,Stockholm,
Real
Stockholm,CBD
CBD(VS)
(VS)
CPI-adjusted
VacancyCBD
CBD (HS)
(HS)
Vakans
* Source: DTZ Sweden
0,0
PREREQUISITES
PROPERTY MANAGEMENT
 Focus
on:
• Customers
• Revenue
• Surplus ratio
Grönlandet
Södra 13, City
Trängkåren 7, City
Getingen 13, City
TECHNICAL
OPERATIONS

Focus on:
• Organisation
• Cost control
• Preventive efforts
• Sustainability
• Energy
• CSI
DEVELOPMENT OF EXISTING PORTFOLIO
PREREQUISITES
PROPERTY
DEVELOPMENT
 Continued
healthy
profit margin- at least
matching our target of
20%
 Investment in
coming
years: approximately
SEK 2bn annually
Nationalarenan
8, Arenastaden
Uarda 1, hus C,
Arenastaden
Järvakrogen 3, Solna
(The Winery Hotel)
FUTURE
OPPORTUNITIES

Ongoing projects; volume,
development rights and
investment

Total development rights
with time plan for detail
planning

Future possible
development rights in the
portfolio
ONGOING PROJECTS; VOLUME OF DEVELOPMENT RIGHTS AND
INVESTMENT
Property listing
Property type
Area (LOA)
Sek Inv.
Completed
Järvakrogen 3
Hotel
8,000
260
Q1 2016
Nationalarenan 8
Office
42,000
1,311
Q2 2016
Pyramiden 4
Office
67,700
2,350
2017/2018
Uarda1, hus B
Office
17,000
576
Q4 2017
Uarda 1, hus C
Office
17,600
570
Q1 2016
152,300
5,067
Summa
Year
Investment
HGA/Maintance
Total
2015
1,600
450
2,050
2016
800
450
1,250
2017
750
450
1,200
2018
400
450
850
BUILDING RIGHTS BEYOND ONGOING PROJECTS
Area
Property type
Gross floor area
Detail Planning (DP)
Inner city
Office
9,000
No (DP)
Inner city
Residential
47,000 Planning process 20,000 sqm
Hammarby Sjöstad
Office
38,000
DP completed
Solna Business Park
Office
37,000
DP completed
Arenastaden
Office
95,000
DP done 48,000 sqm
Planning process 44,000 sqm
Ulriksdal
Office
45,000
No DP
Industry
43,000
DP completed
Other
Total
Farao 15 – 17, Arenastaden
314,000
Signalen 3, Arenastaden
POSSIBLE FUTURE
DEVELOPMENT RIGHTS

Solna Business Park app. 75,000 sqm

Arenastaden – Tömmen 20,000 sqm

Catena – commercial 55,000 sqm

Råsunda – commercial 35,000 sqm
Lagern 2, Råsunda
Structural image, Solna Business Park
Structural image, Frösunda (Catena)
GOOD CONDITIONS
FOR CONTINUED
STRONG GROWTH
IN EARNINGS

Stockholm – a growth
market

Modern buildings in
attractive locations

Future potential in property
development

Strong driven organisation
THANK YOU!
HAMMARBY
SJÖSTAD
We develop the
city
for our customers
CITY
KEY FIGURES
2014 acc
Q3
2013
2012
2011
2010
2009
2008
33,868
33,384
31,636
29,150
26,969
29,193
29,511
Equity/assets ratio, %
36
35
34
39
39
32
32
Loan-to-value ratio, %
59
57
57
57
62
65
64
Net lettings, SEKm
246
68
141
130
27
96
-8
Interest coverage ratio,
multiple
2.2
2.0
2.3
2.2
3.0
2.6
1.9
Occupancy rate, %
92
93
92
90
88
90
93
Surplus ratio, %
72
69
68
68
67
67
65
5.01
9.26
-0.54
7.01
10.38
2.59
-3.07
78
76
70
73
69
61
60
Market value, SEKm
Earnings per share, SEK
Equity per share, SEK
LARGEST SHAREHOLDERS (PER SEPTEMBER 2014)
Number of shares
Proportion of equity,%
Proportion of votes,%
25,051,150
8,938,454
7,681,942
5,500,736
5,015,367
4,391,352
3,714,244
3,071,901
2,711,000
2,477,561
2,275,856
2,131,902
1,542,713
1,290,558
1,277,969
77,072,705
44,710,757
43,608,110
15.1
5.4
4.6
3.3
3.0
2.7
2.2
1.9
1.6
1.5
1.4
1.3
0.9
0.8
0.8
46.6
27.0
26.4
15.1
5.4
4.6
3.3
3.0
2.7
2.2
1.9
1.6
1.5
1.4
1.3
0.9
0.8
0.8
46.6
27.0
26.4
Total number of outstanding shares
Treasury shares
165,391,572
0
100.0
0.0
100.0
0.0
Total number of registered shares
165,391,572
100.0
100.0
Erik Paulsson with family, privately and company
BlackRock Inc.
Länsförsäkringar fund management
Öresund Investment AB
SHB funds
Norges Bank Investment Management
Mats Qviberg with family
SEB funds
ENA City AB
Nordea funds
Blue Sky Group Stichting
Principal funds
Fourth AP fund
TR Property Investment Trust
Standard Life Investment fund
Total 15 largest shareholders
Other foreign shareholders
Other Swedish shareholders