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Presentation DNBOslo, September 20, 2018
Norwegian Property – commercial propertyPrime – long term focus
• Prime commercial properties in
attractive locations• Oslo CBD West
• Oslo Nydalen
• Focus going forward• Let out vacant areas
• Acquire new properties in CBD and Nydalen
• Contemplate acquisitions in other parts of Oslo
• The current organization has focus on value add and
infill projects
3
The portfolio as of Q2 2018
3
Property value by area Run rate split on spaceRun rate by area
Overview of the portfolio
4
CBD Skøyen Nydalen Other Stavanger
10 Properties 3 Properties11 Properties 2 Properties 6 Properties
Portfolio:
129 k sqm
Run rate:
NOK 431m
Refurbishment:
11 k sqm
Portfolio:
42 k sqm
Run rate:
NOK 99.m
Sold:
NOK 823m
Portfolio:
89 k sqm
Run rate:
NOK 127m
Development
potential
Portfolio:
79 k sqm
Run rate:
NOK 97m
Refurbishment:
13 k sqm
Portfolio:
93 k sqm
Run rate:
NOK 43m
Development:
Forusbeen jv
Vacancy based on market rent
4 May 2018
5
6,4 %
5,8 %
7,2 % 7,0 %
5,60%
0,0 %
1,0 %
2,0 %
3,0 %
4,0 %
5,0 %
6,0 %
7,0 %
8,0 %
2017 Q2 2017 Q3 2017 Q4 2018 Q1 2018 Q2
VACANCY BASED ON MARKET RENT, Q1 2017 TO Q2 2018
2,70%
6,60% 7,10%
31,70%
0,00%
5,00%
10,00%
15,00%
20,00%
25,00%
30,00%
35,00%
CBD Nydalen Other Stavanger
VACANCY SPLIT ON AREA
Vacancy calculated as market rent in vacant space, using market rent estimated by Cushman & Wakefield
6
CBD portfolio
7
Developing Collaborative Venture Hubs- meeting demand for more flexibility at Aker Brygge
Since 2013 – success with Business Village
• Offices of different sizes
• Common reception, meeting facilities and social spaces
• Contracts; typically 1 – 3 years
• Pricing reflecting flexibility and service level
• Occupancy 88%.
• Increased with 850 sqm in Q2 2018
Introducing Pier X at Aker Brygge
• Collaborative upscale Venture Hub
• Offices, work spaces and social spaces
• Targeting investors, tech-companies, advisersand international partners
• Inspired by international successes like Wework, Level39, RocketSpace and The Vault
In total 4 200 sqm shared office / co-working at Aker Brygge
Retail
Retailer’s total revenue on Aker Brygge
‐ Q2 2018 NOK 575 mill.‐ 1H 2018 NOK 925 mill.‐ Growth H1 17 – H1 18 + 11.3 %
‐ 2016 NOK 1 570 mill. ‐ 2017 NOK 1 732 mill.‐ Growth full year 2016-2017 + 10.3 %
‐ Turnover-based rent 2017 ~ 15% of total retail revenues
‐ Among the 20 largest Norwegian shopping centres‐ Successful development in the category «Clothes and shoes»
88
Run rate development Aker Brygge
4 May 2018
9
RUN RATE AKER BRYGGE , Q2 2016 - Q2 2018 RUN RATE RETAIL AKER BRYGGE , Q2 2016 - Q2 2018
0
20
40
60
80
100
120
Q2 2016 Q2 2017 Q2 2018
Shopping Food & beverage
0
50
100
150
200
250
300
350
400
450
Q2 2016 Q2 2017 Q2 2018
Retail Other Office
New National Museum at Vestbanehallen
The new National Museum will become an important and dynamic arena for the
general public to meet the visual arts
‐ Planned completion is 2020
The total area is 54 600 m2 whereas the exhibition is 13 000 m2
It is estimated that the new National Museum yearly will have approximately 1
million visitors10
Main entrance
11
Nydalen – Total value 2.1 bn
12
NydalenExciting future for the area
• Nydalen has expanded it’s footprint to includeneighbouring areas
• Proximity to public transport allows for increased density
• Continued urbanisation with city centrequalities
• Know-how from Aker Brygge area
Illustrations from Nydalen + material by Avantor
• Student housing
• Schools
• Shopping / cinema
• Residential
• Hotels
• Infill opportunities
Gullhaugveien 9 - 13
9 February 2018
13
Current situation In the future?
Appendix
Strategy
Focus on office clusters with proximity
to traffic junctions in Greater Oslo
Mainly office, but potentially retail
space in connection to offices
High-quality tenants, diversified
maturity profile and high degree of
inflation adjustment
Focus on key value drivers‐ Leasing and marketing
‐ Development
‐ primarily redevelopment and infill
‐ Property management
‐ Finance and transactions
‐ R&D – new business
15
• Long term target of dividend payment of 30 –
50 per cent of profit after tax before value
adjustment
• Target LTV in range 45 – 55 per cent‐ LTV of 44% as of 30.06.2018, 41% adjusted for forward sales
• Target of a predictable cash flow combined
with a relatively high degree of interest rate
hedging, range of 50 – 100 per cent‐ Hedging ratio of 61 % as of 30.06.2018
Investment strategy Return and financing strategy
Financing
13 July 2018
16
FUNDING SOURCES DEBT MATURITY PROFILE (MNOK) LTV AND ICR
Diversified sources of
funding
• 4.9 bn in bonds
2018.06.30
• Issued NOK 2.5 bn last
12 months
Diversified maturity
profile
• Average remaining time
to maturity 2018.06.30
is 2.9 years
LTV 45-55%
• 44.3% at 2018.06.30
• Approx 41% after sale of
Skøyen and Gardermoen
assets
(1)
(1) ICR = EBITDA / Net interest cost, rolling 4 quarters
17
Disclaimer
The information included in this Presentation contains certain forward-looking statements that
address activities. events or developments that Norwegian Property ASA (“the Company”) expects.
projects. believes or anticipates will or may occur in the future. These statements are based on
various assumptions made by the Company. which are beyond its control and are subject to certain
additional risks and uncertainties. The Company is subject to a large number of risk factors including
but not limited to economic and market conditions in the geographic areas and markets in which
Norwegian Property is or will be operating. counterparty risk. interest rates. access to financing.
fluctuations in currency exchange rates. and changes in governmental regulations. For a further
description of other relevant risk factors we refer to Norwegian Property’s Annual Report for 2017. As
a result of these and other risk factors. actual events and our actual results may differ materially from
those indicated in or implied by such forward-looking statements. The reservation is also made that
inaccuracies or mistakes may occur in the information given above about current status of the
Company or its business. Any reliance on the information above is at the risk of the reader. and
Norwegian Property disclaims any and all liability in this respect.