Catena Annual General Meeting 2008. Business concept and objective Own Manage Develop Steadily...
-
Upload
kelley-cook -
Category
Documents
-
view
214 -
download
0
Transcript of Catena Annual General Meeting 2008. Business concept and objective Own Manage Develop Steadily...
Business concept and objective
Own
Manage
Develop
Steadily growing cash flow
Good value growth
Favorable, long-term total return
Leading player
Focus: Commercial properties in prime locations in strategic areas
Strategy and business focus
• Actively manage the property portfolio
• Acquire commercial properties
• Actively improve and develop the property portfolio
• Divest properties
Portfolio management
• Properties which provide stable cash flows and which do not need to be developed in the next few years
• Properties which should be improved or converted
• Properties which should be divested
Catena – a brief overview
• Catena owns 30 properties
• In four growth regions in Sweden, Norway and Denmark
• Book value of SEK 2 479 M
• Commercial properties in the right location and opportunities for alternative uses
• Rental value: SEK 190,6 M annually
• Stable revenues – long-term rental contracts, 100% indexing
• High occoupancy rate 98.3 per cent
Catena – 2007 in brief
• Rental revenue totalled SEK 179,7 M (177,0)
• Income from property management amounted to SEK 73,8 M (99,5)
• Income from property management excluding currency differences amounted to SEK 86,2 M (88,3)
• Profit after tax was SEK 216,2 M (255,0)
• Profit per share was SEK 18,70 (22,05)
• Unrealized changes in value were included in the result at SEK 168,4 M (252,8)
Increase in value of the property portfolio
January – December, 2007 SEKm
Book value at the beginning of the period 2,158
Value changes 167
Investments in existing portfolio 95
Acquisitions 24
Currency effect 35
Book value at the end of the period 2,479
Significant events 2007
• In February a 15-year lease was signed in Södertälje.Total rental value SEK 75 M
• Six properties were sold in March for SEK 125 M, with a capital gain of SEK 377 M.
• A ten-year lease was signed in May with Tidermans Hyrmaskiner at Backaplan in Gothenburg. Total rental value SEK 33 M.
• In June 2007, a property was acquired in the commercial area Svågertorp in Malmö.
Financial targetsKey data Target Dec 31, 2007
Return on equity To exceed the risk-free rate of interest by at least 5 percentage points
23.6%
Interest coverage ratio Not less than 1.75 2.4
Equity/assets ratio 25-35% 39.6%
Dividend To amount to 75% of net income from property management in the long term
114%
Significant events 2007
• A leasehold agreement was redeemed in Lilleström in October.
• In October, an Extraordinary General Meeting elected a partly new Board of Directors due to the ownership change that occurred in the company.
• During the year, investments were made in the existing facilities amounting to SEK 95 M (53). Decisions were made to invest SEK 143 M during 2008.
• The Board proposes an increase in dividend to sek 5.25 per share (5.00).
Catena creates value through development
Follo, Norge
• Upgrading of car facility• Completed in November
2007• Investment of SEK 15 M• 15-year rental supplement
with Bilia
Catena creates value through development
Almedal, Göteborg
• Expansion and renovation of body and paint shop
• Completion in June 2008• Investment of SEK 43 M• 15-year rental supplement
with Bilia
Catena creates value through development
Ökern, Oslo
• Renovation of service workshop and car showroom
• Completed in December 2007
• Investment of SEK 27.5 M• Ten-year rental
supplement with Bilia
Catena creates value through development
Drammen, Norge
• Expansion and renovation of car facility
• Completion in December 2008
• Investment of SEK 71.0 M• 15-year rental supplement
with Bilia (from January 1, 2009)
Catena creates value through acquisition
Svågertorp, Malmö
• Office and workshop with wash bay
• Built 2006• Investment SEK 28 M• Strategy: Rebuild for
commercial use
Performance according to the strategy
Effective management
Acquire commercial properties in strategic locations
Improve and develop the portfolio
Divest properties outside priority markets
Income from property management + 5 per cent
Svågertorp, Malmö
Investments SEK 95m in 2007
Decided investments SEK 143m in 2008
Six properties for SEK 235m
Focus on strategic metropolitan areas
• Stockholm region
• Gothenburg region
• Öresund region
• Oslo region
Stockholm region
• 9 properties
• 36% of book value
• Rental value SEK 67,7 M
• Average lease period 11,5 years
• Occupancy rate 96,2%
Segeltorp
Almedal
Göteborg region
• 10 properties
• 25% of book value
• Rental value SEK 48,5 M
• Average lease period 10,2 years
• Occupancy rate 100%
Öresund region
• 7 properties
• 20% of book value
• Rental value SEK 41,3 M
• Average lease period 6,7 years, Malmö
• Average lease period, 4,4 år, Copenhagen
• Occupancy rate 98,3%
Svågertorp
Oslo region
• 4 properties
• 19% of book value
• Rental value SEK 33,1 M
• Average lease period 12,6 years
• Occupancy rate 100%
Ökern
Ownership structures as of March 31, 2008
Number of shares
Voting rights ( %)
Endicott Sweden AB (CLS Holdings plc) 3,361,000 29.1Erik Selin gruppen 2,471,688 21.4Catella fonder 1,426,012 12.3Länsförsäkringar fonder 588,400 5.1Skandia Liv 289,400 2.5Swedbank Robur fonder 182,310 1.6Mellon US Tax Exempt Account 94,600 0.8Odin Eiendom 60,400 0.5Larona AB 50,000 0.4CBLDN-Stich Shell Pensioenfonds 48,850 0.4Summa tio största aktieägare 8,572,660 74.1Övriga aktieägare 2,991,840 25.9Totalt 11,564,500 100.0
First quarter – significant events• Acquisition of about 11,000 square meters of land in Svågertorp, Malmö
• Ten-year lease signed with Danish Vestas
• Investment of SEK 65 M in new offices of 3,600 square meters in Svågertorp
commercial area
First quarter 2008 - financially
Q1 2008 Q1 2007
Rental revenue, SEK M 46,1 46,1
Income from property management, SEK M 20,9 15,2
Change in value, unrealized,SEK M -0,1 45,4
Change in value of properties,realized, SEK M - 38,0
Profit for the period, SEK M 13,5 85,1
Profit after tax per share, SEK 1,17 7,36
Success factors
• Strategic locations in four metropolitan regions: Stockholm,
Gothenburg, Öresund and Oslo
• Strategic positions that provide favorable opportunities for alternative
uses
• Development potential in existing properties
• Small, efficient organization with local market presence
• High degree of customer adaptions and long-term customer relations
• Long lease agreements