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Tableofcontents
Financialupdate
Keyfigures..............................................................................................................................................................................................................3
Portfoliovaluation..................................................................................................................................................................................................4
Financing.................................................................................................................................................................................................................6
Yieldspread............................................................................................................................................................................................................7
Appendix
Highlights................................................................................................................................................................................................................8
Tenantsleaseexpiry..............................................................................................................................................................................................9
Exposureoverview................................................................................................................................................................................................10
Exposuretolocations...........................................................................................................................................................................................11
EmilEriksrød
Chairman
Financial update
Overview and key figures Q4-2015
Key figures of 31.12.2015
31.12.2015
Properties
no
10
Portfolio size (ex. New space in development projects)
m²
39 484
Average size per property
m²
3 948
Gross rent per year (run rate)
NOK mill.
54,2
Operational expences per year 1)
NOK mill.
3,3
Net rent per year (run rate)
NOK mill.
50,9
NOK
1 372
Gross market value (Inc. Development project "land")
NOK mill.
815,5
Average value per property
NOK mill.
81,6
Average gross rate per m2 per year
Average value per m2 (including "land")
NOK
20 654
Gross yield, actual
%
6,6
Net yield, actual
%
6,7
Gross yield at market rent fullt let ²)
%
7,3
Net yield at market rent fully let ²)
%
6,9
Years
5,2
CPI adjustments annual
%
88,3
Vacancy (space including strategic vacancy)
%
4,6
Duration, WALE ³)
1) Assuming 6% operating expenses on property levels
2) Assuming market rent, adjusted for county and location
3) WALE, stands for "weighted average lease expiry" by rent
Financial update
Portfolio valuation by area Q4-2015
* External valuation conducted by Newsec
Telemark
Area
Total space
(m2)
Space 3) not
generating
revenue (%)
Weighted
Average
Lease Expiry
(years)
Valuation
NOK mill.
Gross rent pr year
NOK/m2
NOK mill.
NOK/m2
Net
yield 1)
Gross marked
rent fully let
Skien Sentrum
2 209
18,6 %
2,0
35,0
15 844
2,49
1 127
6,7 %
2,5
Kjørbekk
6 047
0,0 %
4,1
77,5
12 816
5,05
835
6,1 %
6,7
Porsgrunn Sentrum
1 577
0,0 %
6,1
30,0
19 023
2,18
1 385
6,8 %
1,7
10 657
0,0 %
3,7
202,5
19 002
15,29
1 434
7,1 %
16,0
2 548
0,0 %
4,5
29,5
11 578
2,28
896
7,3 %
2,5
16 446
8,6 %
6,2
389,0
23 653
26,89
1 635
6,5 %
26,5
39 484
4,6 %
5,2
763,5
19 337
54,18
1 372
6,7 %
56,0
39 484
4,6 %
5,2
763,5
19 337
54,18
1 372
6,7 %
56,0
Porsgrunn Næringspark
Skjelsvik E18
Vestfold
Tønsberg (Korten)
Running operations
Redevelopment projects
Total office portfolio
1) Based on gross rent as of 31 December 2015 and estimated operating expences of 6%
2) Estimated fully let gross marked rent, based on local knowledge
3) Parking and storage is excluded from the calculation of space vacancy
Financial update
Development projects Q4-2015
Gross space
estimated
(sqm)
Area
Telemark
Valuation
(NOK mill.)
Letting ratio
(%)
Before development
Fully developed
Gross rent
pr year
(NOK mill.)
Net yield on
market rent
11 500
52,3 %
20,0
350,0
24,5
6,6 %
6 000
41,7 %
8,0
185,0
12,5
6,4 %
Torggata 8
2 850
42,1 %
14,0
40,0
3,0
7,1 %
Kammerherreløkka 2
5 500
69,1 %
12,0
125,0
9
6,8 %
4 561
57,3 %
18,0
110,0
7,7
6,6 %
4 561
57,3 %
18,0
110,0
7,7
6,6 %
18 911
53,5 %
52,0
460,0
32,2
6,6 %
Powerhouse Telemark
Vestfold
Nordre Fokserød 14
Development projects
3
1
1) Powerhouse Telemark is a planned Powerhouse in cooperation with Snøhetta Architecture
2) Kammerherreløkka is a joint venture with Rom Eiendom. All figures are based on 50 % ownership
3) Start of construction will be in Q4-2015. Property tenent ratio is 100 % on building 1. Main tenant KPMG.
Financial update
Financing Q4-2015
Bank financing
Amount
DNB Bank ASA
1
3m Nibor
Maturity
557,1
2035
1,13 %
Market int.
Finance composition
Total
1,98 %
4,07 %
Swap 1
80 mNOK of DNB bank financing are bounded to a 10 year SWAP beginning 7.July 2014
with total interest, 4,63 %.
Swap 2
18,3 mNOK of DNB bank ASA financing are bounded to a 10 year SWAP beginning 10
May 2014 with total interest, 6,00 %
Swap 3
7,9 mNOK of DNB Bank ASA financing are bounded to a 10 years SWAP beginning 30.
June 2014 with total interest, 5,34 %
Swap 4
96,4 mNOK of DNB Bank ASA financing are bounded to a 10 year SWAP beginning 01.
March 2013 with total interest, 5,22 %
Swap 5
49,4 mNOK of DNB Bank ASA financing are bounded to a 10 year SWAP beginning 01.
June 2015 with total interest 4,05 %
Swap 6
50,0 mNOK of DNB Bank ASA financing are bounded to a 5 year SWAP beginning 13.
August 2015 with total interest 3,49 %
1%
3M Nibor + margin (DNB)
45 %
Fixed rate / Swap (DNB)
54 %
Vendor financing
Loan to value
85 %
80 %
Vendor credit
Amount
1
Maturity
75 %
Totalt interest
Veidekke Eiendom AS
1,67
2018
5,00 %
Dynam AS
1,67
2018
5,00 %
Dione AS
1,67
2018
5,00 %
Target for LTV ratio
70 %
68 %
65 %
2010
Amount
Total financing (Bank & vendor)
1
562,07
Market int.
1,81 %
Margin ²
Total interest ²
1,88 %
1) Amount presented in mNOK
2) Total margin / interest is presented weighted by amount, SWAP contracts taken into account
3) 54 % of bank financing is secured by 6 SWAP contracts, risk diversification
4,08 %
2011
2012
Net LTV incl. Vendor credit
2013
2014
Net LTV
2015
Financial update
Yield spread
9,00
9,00
8,00
8,00
7,00
7,00
6,00
6,00
5,00
5,00
4,00
4,00
3 mnd Nibor
3,00
3,00
NOK GOV 10 Y
Prime Yield
2,00
2,00
1)
2)
Source: Norges Bank
Source: Oslo Børs
2015 Q4
2015 Q3
2015 Q2
2015 Q1
2014 Q4
2014 Q3
2014 Q2
2014 Q1
2013 Q4
2013 Q3
2013 Q2
2013 Q1
2012 Q4
1,00
2012 Q3
R8 Net Yield
1,00
Appendix
Highlights in Q4-2015
•
Sale of properties
- Stangsgate 1, Storgata 171-175 and
Vipeveien 51 are sold in Q4-2015.
•
Positive value changes
- Gross increase in property values with 0,6 % in Q4-2015.
- Total portfolio value is NOK 815,5 million. Sales are taken
into consideration.
•
7 new contracts signed
- Total annual revenue of NOK 4,2 million signed in Q4-2015.
- Total area signed 4338 sqm in Q4-2015.
- Telemarksavisa
- Bemanningsbyraaet
- Kontorfellesskap Dokkvegen 8
- Maskineriet salg & Booking
- Fretex
•
Torggata 8
Torggata 8
Porsgrunn Næringspark
Bedriftsveien 52 - 58
Bedriftsveien 52 - 58
Letting ratio increasing in Q4-2015
- Porsgrunn Sentrum increasing to 100 %
- Porsgrunn Næringspark increasning to 100 %
- Total letting ratio portfolio 95,4 %
Appendix
Overview portfolio lease expiry
Revenue expiring
kr 25 000 000
9
kr 20 000 000
kr 15 000 000
4
kr 10 000 000
2015
2016
2017
2018
7
2019
2020
2021
2022
2023
2024
2025
kr
kr
kr
kr
kr
kr
kr
kr
kr
kr
kr
kr
Number of contracts expiring
51 990
4 251 825
6 270 792
2 891 801
1 777 618
9 096 1836
19 903 736
2 185 528
6 372 303
3 465 994
53 267 770
1
4
9
7
3
6
0
6
2
4
1
43
10
x
x
x
x
x
x 6
9
8
7
6
5
4
4
3
2
kr 5 000 000
1
kr
2
54146000
878 230
1
1
0
kr 0
0
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
Appendix
Exposure to locations in Q4-2015
Portfolio gross rent by
by area
area
6%
Skien sentrum
5%
Kjørbekk
Porsgrunn Sentrum
15 %
9%
4%
42 %
4%
50 %
Porsgrunn Næringspark
28 %
Skjelsvik E18
4%
Vestfold
Portfolio total space by area
6%
27 %
Appendix
Porsgrunn Sentrum
Storgata 106
Tenant: Multi-tenant
Total space:
1 640 m²
6,1 year
Duration:
Land for development
Total space:
7 000 m²
Appendix
Skien - Kjørbekk
Bedriftsveien 52 - 58
Tenant: Multi-tenant
Total space:
2 878 m²
4,5 year
Duration:
Grønlikroken 5
Tenant: Multi-tenant
Total space:
3 169 m²
3,6 year
Duration:
Appendix
Skien sentrum
Hessel berggaten 4
Tenant: DNB, multi-tenant
Total space:
2 209 m²
2,0 year
Duration:
Appendix
Porsgrunn Skjelsvik E18
Versvikveien 6B
Tenant: Furmanite AS
Total space:
2 548 m²
7,6 year
Duration:
Appendix
Porsgrunn Næringspark
Dokkveien 8
Tenant: Multi-tenant
Total space:
5 853 m²
4,4 year
Duration:
Dokkveien 10
Tenant: Multi-tenant
Total space:
5 035 m²
3,3 year
Duration:
Land for development
Total space:
2 500 m²
(Telemark Powerhouse)
Appendix
Tønsberg (Korten)
Vinkelbygget
Tenant: Multi-tenant
Total space:
10 365 m²
5,9 year
Duration:
Sentralbygget
Tenant: Multi-tenant
Total space:
3 781 m²
8,6 year
Duration:
Parkbygget
Tenant: Multi-tenant
Total space:
2 300 m²
3,0 year
Duration:
Land for development
Total space:
7 000 m²
(Nordre Fokserød 14
R8 Property AS
A: Dokkvegen 10, 3920 Porsgrunn
T: +47 940 09 888
M:[email protected]
W:r8property.no