Nivika Fastigheter AB (publ)

Hej och välkomna till dagens sändning med Nivika Fastigheter där vi heter Niklas Bergman och CFO Kristina Karlsson kommer att presentera rapporten för det andra kvartalet 2024. Efter presentationen så kommer det hållas en Q&A så har ni några frågor då skickar ni in dem i formuläret till höger. Och med det sagt så lämnar jag över ordet till er.

Hejsan, välkomna till dagens möte. Ni pratar med mig, Niklas Bergman, VD och grundare för bolaget. Jag är med med Kristina, CFO och ER-ansvarig. We are a small country company that operates housing management, design and development in Småland and Halland. Our main property is in Jönköping where we have 30% of the property and 30% of Värnamån and 20% of Växjö and the remaining 20% is mainly on the west coast. Our business idea is to be an attractive and safe property owner with long-term management and we work hard to be local and work close to our municipalities and neighbourhoods and also private rental companies. This means that we have a good knowledge of these threats. We have now reached the last February at almost 11 million. And It consists of 195 properties and now we have a contract value of 690 million with an area of 584,000 square meters. 60% of this part is commercial premises, when you talk about property value, and 40% is housing. If we take the rent value, we are a little higher on the commercial. Bostadsfastheterna är ju tydligt den största delen, kommer på nästa sida här. Men vi har största delen kommersiella, industrilokaler, kontor och samhällsfastheter. Lite handelslokaler, inte mycket, några centrala lokaler, en del boxhandel, men största delen är industrilager och samhällsfastheter. And to the next page. We have a growing property portfolio. We have had a little hack in the curve with a decrease in the value of property last year, but now in the quarter we see that there has been a balancing of this and there is now at least plus or minus zero in value. I think that our yields are quite even here now. We have lowered our loan rate now with So we will see when we have the obligation down to 45%. And we have some growth in our long-term substance value, which is now about 6 billion. And we are working hard with our surplus level, our drift net, and we believe that it will It will increase in the future because now it is a quarter with 69% that is usually a little lower because of higher heating costs. But now we buy a whole lot of triple net property and that means that this share price should increase here in the future. Next slide. We have increased our rents during the quarter here towards the north and improved our operating net. Både när det gäller lägre kostnader och köpt en hel del triple net fastigheter där vi inte har så höga kostnader. Som jag sa tidigare har vi en hög uthyrningsgrad, 96% av de kommersiella fastigheterna uthyrda och 98% av bostäderna. And we had a positive net sales in the last quarter of 5 million. And we have an incredibly high demand, in fact, on several of the new locations. In Jönköping we need to find more locations. We can't move the ones we have. It's almost a problem that we have too little space. And even in Värnamo we have about 2%. Vi har under kvartalet färdigställt en stor industrilokal till ett stort företag som heter DS Mitt, som heter Hematiten. Det kommer tillföra här nu 11 miljoner i ett årligt hyresvärde. En sån facit har vi då egentligen inga kostnader under kontraktstiderna på 15 år. Vi har förvärvat fyra triple nätfastheter kommersiellt, som kommer tillföra 8 miljoner i hyresvärde och mer eller mindre i driftnät också. Jag har skrivit avtryck på att avyttra. Vi avyttar inte så mycket just nu men det är två fastigheter som ligger i vår perfori som vi tycker att det är för dyrt att förvalta dessa. Två fastigheter som är enot så de kommer vi nu lämna över här nästa vecka. To the next slide. Now to Kristina.

Yes, thank you. And then we will go in and look a little more in detail at the results and the balance sheet. We have a strong report with us. Income during the period has increased by 7 percent compared to the previous comparable period. We have, as Niklas said, a high rate of sales in the premises. We have a net profit that has increased by 16 percent. Instead of an increase in revenue by seven, we see the effect of what Niklas was talking about, energy optimizations and energy efficiency. We also see a big difference in the financial net, especially in the previous year, where the financial net has decreased by 18%. This is due to a debt that is 11% lower than what we had a year ago. Despite the fact that we are on the same revenue, we have better results. The interest rate is 12, which is 1.7, which is in parity with the previous year. The revenue has increased to 48 million SEK. Last year we had 21 million SEK, which is more than double. per share during this quarter is 0.65 kronor compared to 0.36 kronor last year. And as Niklas said, we have made a smaller value change on the property, but it went up to 18 million in a positive direction and last year we were negative at minus 62. Vi kan fortsätta till balansräkningen och kika in. Vi har ett fastighetsvärde på nästan 11 miljarder, vilket är nästan i varitet med fjolåret. Förvaltningsfastigheterna står för 93 procent, alltså drygt 10 miljarder av dessa 11. Det är pågående byggnationer på en halv miljard. Obebyggd mark med tomt och byggrätter totalt för 338 miljoner. Och då ingår de här fyra typen av fastigheterna som vi har förvärvat under perioder. As I said, the interest rate debt is clearly lower than last year. It is a little over 5 billion SEK. After the emissions we made this autumn, we have a net credit rate of 45%. We have no obligation loans. We have then adapted to the higher interest rate. We have interest rates of about 40% of our debt. This means that we are well equipped and we have been able to enjoy the upcoming interest rate. Vi har också beviljad men inte nyttjad finansiering på drygt 300 miljoner. Vi har 260 miljoner i kassan och vi har ett långsiktigt substansvärde på drygt 6 miljarder vilket då ger 60 och 70 per aktie. Då lämnar jag vidare till Niklas igen.

We have during the quarter and the coming quarter, this is the last quarter to be completed. And that's what I was talking about earlier. It's a selection of those we're doing. We have a little sighting in Växjö, Opus, which will be finished during the quarter. We have finished an industry and a warehouse building for Välpapp. which is called Graniten 39. We have also completed a sustainable industrial building that produces wood in Värnamo which is 8,000 square meters. And then we have a number of ongoing projects here now that will add up to 27 million here in the future. And most of them and everything will be finished during this fiscal year. And that means that we are starting to increase our turnover in the future. And we also have a rent increase on the housing side that we made up last April. There was a little tactic in this that we are a little behind the others. I think we have got a good rent increase in total on all of our housing. We are on a vacancy of 27 million SEK. We hope and believe that we will be able to manage a few more quarters. It is a bit difficult now, absolutely, with the commercial side, but we still think that with the diversified local hiring guests we have, we should be able to do this. We have 600 hiring guests in many different industries. We work a lot with our costs. Our energy is very important today. We try to save as much as possible. Yes, as I said, we have completed a number of properties, and we are purchasing the two now fully rented properties. We have bought this on Gile, which is between 7-8%. We are also purchasing a project that we have press-released, which we will start in May, which will give us 23 million in rent, where the municipality will rent 70% of this. will be completed in about two years. Also now during the quarter, or after the quarter, I have written an article about Ionity, which is a 20-year agreement that can now build up to 24 charging stations in two years. The first eight will come this autumn and together with this we will build a We call it ELEMAK. It's like Circle K, but it's just electric charging. Our new head control will be located outside of Värnamo. This will be ready for the spring shift. As I said earlier, we have several requests for new rental estates, new projects, especially in Värnamo and Jönköping, new industrial premises, construction of those we already own, which gives us a good cash flow with that we have already bought the land and have the building rights in our hands already. And as I said, there are several ongoing discussions about acquisitions, and above all, high-end assets. That's what we're looking at right now. Yes, do you have anything to add, Kristina?

Yes, we thank you for the time and open up for questions. Thank you very much.

Yes, we'll get to the questions here in a moment, I think. You increased Drift Netto by over 16% compared to previous years. What strategy have you used to achieve this growth in Drift Netto?

Our last strategy has been to buy high-impact properties. We have a lot of ongoing housing projects. And these high-impact facilities means that we increase the flow rate, but we have lower costs. We can increase quite a lot with these types of facilities without increasing our organization. And then we work hard with energy savings, and it goes through.

Thank you. Here comes a longer question. What are the biggest risks with your stock today? In your company contracts, how do the yields look on the contracts that were put in between 2020 and 2021? And how do you see the risks that these contracts will not be renewed? Can you explain clearly how you did business between 2020 and 2021 and how you do business today? Are there any differences in terms of duration and so on?

It was a long question, I'll try to make it short. We don't make any major difference to how we calculated. The only thing we calculated was a higher yield today. However, when we did business in 2021, the yield was lower, but the costs were also lower to build. Nu har vi skrivit ganska långa alter på de här nya projekten vi gjorde men vi ser att vi ligger så pass bra i hyresvärde eller hyreskvadratmeterpris på den typen av fastigheter så vi ser att vi ligger lägre än vad det blir idag. Så vi ser positivt på det befintliga beståndet eller hyresnivån vi ligger på.

Thank you. Will you see an increase in the administrative results during 2024 even without interest rates?

You can take the question now.

Yes, I will just start by making a small warning that we do not make any forecasts, but on the other hand, just as you can read in the report, Niklas said that we have 27 million in revenue that will come in during the year with new regulations. We do acquisitions and many of them are triple net, so yes, Vika is adapted to today's rate level and we expect Thank you. You mention an expected wave to the rental market in the future.

What strategies have you planned to handle this uncertainty and still continue to create growth?

We are working hard with the rent and will strengthen it further as it gets a bit more difficult from now on. We are working close to the market and close to our tenants all the time to be ahead of their expectations. We are working with the tenants. We are trying to be ahead all the time.

You now have a net income of 45%. Is that where you want to be? We have come up with a new strategy for a while now.

We intend to go up to 55% in the long term. Då ska vi vara under förutsättning att vi gör bra affärer och vi ska inte ta några stora risker med räntor. Vi tittar ju på absolut nu när läget ges och binder mer ränta, när de har botten på räntan om man det säger man. Så vi absolut kommer kanske att ligga lite i höger, men då ska vi göra bra affärer.

Thank you. How do you see starting new projects now that the economy is more unstable and construction costs have gone up? How do you see starting new projects?

We like to start projects on the commercial side, especially with industry locations where we have several questions. As for the housing side, we don't start any projects because those businesses are not coming together right now. But when it comes to the commercial side, we see that it has come back a bit on the construction side now. Both the installers and the builders are interested in working now and going down in price. So we see that the price is on the way down. And we see that we get the calculations quite well. With 10-15% project profit we have when we start up.

Thank you. How do you work actively to reduce energy costs?

Vi har byggt upp en energiavdelning här och kommer förstärka den ytterligare med fyra personer. Det är hårt arbete och mycket. Vi har sett nu med banker att det går att hitta bra krediter nu för att göra den här energiomvandlingen i husen och besparingen. Så vi jobbar mycket med det. Absolut.

Super. Finally, the last question. What should investors keep an eye on in the coming quarter when it comes to Renewvika?

The answer is the vaccine.

Yes, that was not an easy question. It's the same as with many other real estate companies. Of course, we are curious about how the interest rate will develop. The interest rate will have a big impact on our results. Likewise, what is happening now on the transaction market and yield levels. It feels a bit like when you talk to valuers that it may have been at the top and that the yields are slowly going down.

I feel it in our area. We have a lot of questions about selling commercial goods. My feeling when it comes to light industry and storage is that the yield is on its way down in our area. That's what I feel. We have had an incredible amount of questions about selling. We don't want to sell. We want to build clusters. That's what our goal is. And have a good administration.

Då får jag tacka så mycket för presentationen för att ni tog tid att svara på våra frågor. Jag vill även tacka alla som har tittat och ni får en fortsatt bra vecka.

Tack så mycket. Tack allihopa.