Investor Presentation for Bondholders 1.9.2016
Introduction to a new structure – a preparation for further growth
Press release in brief
- Merger of HEIMSTADEN and NORDHALLA Creating one of the leading residential property companies in the Nordics! On June 30 2016 Heimstaden AB (”Heimstaden” or the ”Company”) announced an agreement to divest its portfolio of Swedish investment properties to Nordhalla AB (“Nordhalla”) during the third quarter 2016. The capital received will be financing the continued growth of the Company. The buyer, Nordhalla, is a company co-owned by Heimstaden and Alecta and Sandvik’s and Ericsson’s pension funds. Heimstaden’s ownership will increase from 40 percent to 65 percent following the capital injection. Alecta will hold 23 percent, Ericsson’s pension fund 9 percent and Sandvik’s pension fund the remaining 3 percent. The estimated total value of the properties sold amounts to about 10.6 billion SEK. No capital gain will be reported as Nordhalla will be consolidated in Heimstaden as an effect of the increased holding in the associated company. .
2
Table of content
Content
Page
Disclaimer
4
Background
5
Heimstaden results per Q2
6-7
Heimstaden group overview
8
Heimstaden board of directors
9
Heimstaden – asset management model, financial and dividend policy
10-13
Property portfolio overview pre/post merger
14-16
Proforma and earning capacity
17-18
Liability overview
19
Key message to the bondholders
20
Heimstaden Bostad AB (formerly Nordhalla Fastigheter AB)
21-23
Contact details
24
3
Disclaimer •
This company presentation (the “Presentation”) has been prepared by Heimstaden AB (“Heimstaden” or the “Company”). The Presentation has not been reviewed or registered with, or approved by, any public authority, stock exchange or regulated market place. The Company makes no representation or warranty (whether expressed or implied) as to the correctness or completeness of the information contained herein, and neither the Company nor any of its subsidiaries, directors, employees or advisors assume any liability connected to the Presentation and/or the statements set out herein. This presentation is not and does not purport to be complete in any way. By receiving this Presentation you acknowledge that you will be solely responsible for your own assessment of the market and the market position of the Company and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the Company’s business. The information included in this Presentation may contain certain forward-looking statements relating to the business, financial performance and results of the Company and/or the industry in which it operates. Forward-looking statements concern future circumstances and results and other statements that are not historical facts, sometimes identified by the words “believes”, expects”, “predicts”, “intends”, “projects”, “plans”, “estimates”, “aims”, “foresees”, “anticipates”, “targets”, and similar expressions. The forward-looking statements contained in this Presentation, including assumptions, opinions and views of the Company or cited from third party sources are solely opinions and forecasts which are subject to risks, uncertainties and other factors that may cause actual events to differ materially from any anticipated development. For a description of such risks, uncertainties and other factors; please see Risk Factors slides below, including the references therefrom. None of the Company or its advisors or any of their parent or subsidiary undertakings or any such person’s affiliates, officers or employees provides any assurance that the assumptions underlying such forward-looking statements are free from errors nor does any of them accept any responsibility for the future accuracy of the opinions expressed in this Presentation or the actual occurrence of the forecasted developments. The Company and its advisors assume no obligation to update any forward-looking statements or to conform these forward-looking statements to the Company’s actual results. Investors are advised, however, to inform themselves about any further public disclosures made by the Company, such as filings made with the NASDAQ OMX or press releases. This Presentation has been prepared for information purposes only. This Presentation does not in itself constitute any solicitation for any offer to purchase or subscribe any securities and is not an offer or invitation to sell or issue securities for sale in any jurisdiction, including the United States. The distribution of this Presentation may in certain jurisdictions be restricted by law. Accordingly, this Presentation may not be distributed in any jurisdiction except under circumstances that will result in compliance with applicable laws and regulations. The Company and its advisers require persons in possession of this Presentation to inform themselves about, and to observe, any such restrictions. The contents of the Presentation are not to be construed as financial, legal, business, investment, tax or other professional advice. Each recipient should consult with its own professional advisors for any such matter and advice. This Presentation speaks as of 1 September 2016 and there may have been changes in matters which affect the Company subsequent to the date of this Presentation. Neither the issue nor delivery of this Presentation shall under any circumstance create any implication that the information contained herein is correct as of any time subsequent to the date hereof or that the affairs of the Company have not since changed, and the Company does not intend, and does not assume any obligation, to update or correct any information included in this Presentation. This Presentation is subject to Swedish law, and any dispute arising in respect of this Presentation is subject to the exclusive jurisdiction of Swedish courts.
•
By receiving this Presentation, you accept to be bound by the terms above.
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Background Background to the merger
Nordhalla Fastigheter AB (to be changed to Heimstaden Bostad AB) (“HBAB”) was established in 2013 as a joint venture between Heimstaden and Alecta, Ericsson Pensionsstiftelse and Sandvik Pensionsstiftelse (“The institutions”). The business concept of the company is to own foremost residential properties in growth areas in Sweden. The company has been highly successful and the institutions have been interested in strengthening the cooperation and increase the capital invested. Heimstaden’s owner Fredensborg has the ambition to expand the assets under management and considering the successful cooperation with the institutions this merger is seen as a possibility to maintain a substantial control over the assets and at the same time release capital for further growth.
Merger rationale Heimstaden’s skills in real estate transactions and managing real estate is combined with financially strong investors who share Heimstaden’s long term investment view.
Larger property portfolio, economies of scale
Increased geographic diversification and exposure to economic growth areas in Sweden
Releases capital for Heimstaden for further acquisitions of real estate Heimstaden remains loyal to its business model; focus on residential properties in strong locations, working with JVs and transaction intensive Heimstaden improves its financial strength and resistance to recessions. The merger is expected to free up cash of approx. SEK 2.0 bn strenghtening Heimstaden’s financial profile.
5
Heimstaden group per Q2 2016 pre-merger Profit and loss statement
Balance sheet
2015 Q2
2015
2014
2013
395
376
719
471
647
-194
-197
-372
-229
-325
Net operating income
201
179
347
242
321
Central administration
-20
-18
-33
-39
-46
Mkr Rental income Operational costs/maintenance
2016 Q2
36
35
66
38
26
-30
-35
-52
-21
-10
54
32
211
36
50
242
194
537
256
342
19
12
26
23
22
Financial costs
-73
-98
-172
-167
-270
Profit after financial items
188
108
391
112
93
Other operational income Other operational costs Shares of results in associated
Mkr
30.06.2016
2015
2014
2013
-
-
24
-
14 836
11 143
10 378
7 042
Shares in associated companies
487
1 008
159
140
Other financial assets
599
584
331
275
60
52
54
24
647
783
369
359
16 630
13 570
11 314
7 839
6 260
5 864
3 480
3 213
91
74
376
307
9 378
6 822
6 426
3 724
Other liablities
231
212
216
144
Defererd tax liabilities
670
597
815
451
16 630
13 570
11 314
7 839
Goodwill Real estate
Other assets Cash position Total assets
companies Operating profit Financial income
Change in market value – real
370
650
1 122
144
Equity Market value financial derivatives Interest bearing liabilities
-42
estate Change in market value – financial
-17
15
28
0
214
541
773
1 541
256
265
0
-16
-29
0
0
Deferred tax
-72
276
206
11
102
Profit after tax
469
1034
1 718
267
368
Total liabilities and equity
derivatives Profit before tax Tax
6
Heimstaden group per Q2 2016 pre-merger Comments
Development of LTV and ICR
For Heimstaden Q2 has been characterized by the preparation of the merger of Heimstaden and Nordhalla. The transaction has required approval from four owners and seven banks.
70%
4,0x
1
3,6x 58%
60%
54%
3,6x
59%
3,2x 50%
2,8x 2,4x
40%
2,0x 30%
The decision to enter the Copenhagen market has fallen out well with increasing rental income above budget.
1,6x
20%
1,2x
1,5x 1,2x
0,8x
10%
Substantially improved ICR due to decreasing interest rates and a well adapted hedging strategy.
0,4x
0%
0,0x 2013
2014
2015
LTV (net)
Slightly increased LTV due to acquisitions in Copenhagen with higher leverage than average of the portfolio.
Increased profit after financial items as a consequence of the continuing intensive acquisition strategy.
600
8000 482
7000
Growing equity foremost due to increasing market values of existing portfolio as a consequence of further yield compressions. Overall solid key ratios:
500 391 400
300
4000 3000
200
Surplus ratio 51%
LTV 59%
Solvency ratio 38%
2
5000 mSEK
ICR
Development of Profit after financial items and equity
6000
30.6.2016
2000
112
93
100
1000 0
0 2013 Equity
7
2014 Deferred taxes
1) Based on rolling 12m 2)Earningscapacity based on 12m as of 30.6.2016
2015 Finanical derivatives
30.6.2016 Profit after financial iterms
mSEK
ICR
Simultanously the previoulsy communicated aquisition strategy has continued with acquisitions in Luleå (Nordhalla), Värnamo (Heimstaden) and Copenhagen (Heimstaden).
3,3x
LTV
48%
Heimstaden – group overview pre/post merger Group overview pre merger
100 %
Fredensborg Eiendomss. AS (group)
Groupoverview overviewpost postmerger transaction Group
Ivar Tollefsen
Ivar Tollefsen
100 %
100 %
Fredensborg
Fredensborg
AS
AS
20-100 %
Other subsidiaries and associated companies
86,2 %*
100 %
Fredensborg Eiendomss. AS (group)
Heimstaden AB (group)
40 %
100 %
100 %
20-100 %
Other subsidiaries and associated companies
HBAB (former Nordhalla) (group)
86,2 %*
Heimstaden AB (group)
65 %
100 % Heimstaden Sverige (properties owned through Intresse bolag Intresse bolag Intresse MidCos)bolag
Heimstaden Sverige(properties owned through Intresse bolag Intresse MidCos) bolag
100 %
Heimstaden Heimstaden Danmark AS (group)
Heimstaden Danmark Heimstaden AS (group)
Heimstaden Danmark AS Danmark AS
Heimstaden Danmark AS Danmark AS
50 %
HBAB (former Nordhalla) (group)
50 %
Other associated Intresse companies Intressebolag bolag
100 %
*) Due to a new issue of preference shares in 2015 Fredensborg AS ownership was diluted to 86,2 %. Fredensborg holds 98 % of the votes. **) Swedish properties owned through Propcos to remain wholy owned by Heimstaden. Initially this entails one site in Norrköping to a value of msek 20 and the recently acquired portfolio in Värnamo.
8
Other associated Intresse companies Intressebolag bolag
”New” Heimstaden Intresse bolag Sverige (group)** Intresse bolag
The board of directors and management of Heimstaden will continue Position
Description Ivar Tollefsen Chairman of the board
Ossie Everum Member of the board
Patrik Hall CEO and member of the board
Magnus Nordholm Deputy CEO and member of the board
Carl-Fredrik Streiby CFO
Mr Tollefsen is chairman of the board of Heimstaden and 100 % owner of Fredensborg AS and correspondingly 86 % owner of Heimstaden. Mr Tollefssen is a self made entrepreneur and long-term investor of Nordic real estate. He is foremost focusing on asset management and real estate acquisitions.
Mr Everum is a member of the board of Heimstaden and is further the CEO of Intea Fastigheter AB, an institutional owned real estate company focused on ”samhällsfastigheter”. Previously Mr Everum was the CEO of Ericssons Pensionsstiftelse and he has held senior positions at Skanska, Scania and Ericsson. Mr Everum is the chairman of the board of Nordika Fastigheter AB och member of the board of Svenska Bostadsfonden Institution 1 AB
Mr Hall is the CEO and member of the board of Heimstaden. He previously held the position as Head of Negotiations at the Tenant Association and before that he held the degree of Lieutenant in the Swedish Army.
Mr Nordholm is the Deputy CEO of Fredensborg AS and deputy CEO as well as member of the board of Heimstaden. He previously held the position as CFO of Heimstaden and before that he was Head of Structured Real Estate Finance Nordic at HSH Nordbank AG, Copenhagen branch.
Mr Streiby is the CFO of Heimstaden. He previously held the position as CFO of Kocum Sonics and as Financial Manager Sweden for IC Group. He started his career as chartered accountant at KPMG with real estate as speciality.
9
The asset managment model of Heimstaden will remain Organization overview
Office overview
Heimstaden has 19 local asset management offices
Head office in Malmö with 18 employees and rep. office in Stockholm
In total 160 employees
Majority owner/Chairman of the board Ivar Tollefsen Region Norr
Skellefteå and Luleå*
Heimstaden AB Deputy CEO
CEO
CFO
Magnus Nordholm
Patrik Hall
Carl-Fredrik Streiby
Gävle
Corporate Finance
Uppsala
Transactions
Group Accounting
Stockholm Strängnäs Katrineholm
Heimstaden Förvaltnings AB (Property Management)
Region Mälardalen
CEO Maria Petersson
Norrköping
Administration
Vetlanda Växjö Hyltebruk Ljungby
Landskrona Malmö
Region Öresund
Klippan
Karlskrona Ronneby
Region Syd
Trelleborg Ystad
Heimstaden offices
*)Skellefteå was established in 2015 and Luleå to be established as part of the recently announced acquisition.
10
Facility Management
Projects
The business concept of Heimstaden will continue Vision To become the leading owner of residential properties in Sweden and Denmark, meaning: To offer safe and comfortable living for the tenants. Strong focus on service Deliver a highly attractive riskadjusted return of investment to owners and JV-partners Strong focus on corporate values First choice of partner for all stakeholders
Business concept Acquisitions ”The business concept of Heimstaden is to acquire, manage and refine foremost residential properties located in strong micro locations in growth areas. Where growth areas are defined as population growth combinded with economic growth”
Asset management
Finance
Residential properties
Local presence
Sound balance sheet
Growth areas
Economies of scale
Long term relationships
Strong micro location
Development and refurbishments
Joint ventures
Rental increase potential
Rental negotiations
Diversified capital sources, access to capital markets
11
Financial risk policy will remain conservative as well as the dividend policy Financial risk policy of the Heimstaden group in brief
Policy
Comments
Outcome per 30.6.2016
Refinancing risk Fixed credit term (months)
Min. 15
139
Loan maturity in a single year (%)
Max. 40
24 (2046)
Interest rate risk Interest cover ratio (times, R12 months)
Min. 1,4
4,2
Average fixed interest term (years)
In accordance to internal risk model
0,9
Hedging ratio (%)
Min. 25
25
Credit risk Solvency (%)
Min. 25
38
Exposure to single financier (%)
Max. 50
17
Heimstaden has one of the longest credit terms in the Swedish market
Interest risk hedging is managed through derivatives, foremost caps and interest rate swaps
Heimstaden is aiming for smooth maturities of its derivatives portfolio to avoid unexpected increase of financial costs due to swift interest rate curve shifts
According to its policy Heimstaden is working with several financing partners to diversify its counterparty risk.
Dividend policy will remain
Dividend policy
Dividend level on common shares is evaluated on a regular basis and will be decided based on market conditions, investment opportunities, the financial strength of the company, and capital structure. Since there is currently a strong focus on growth and further acquisition of residential properties in Sweden and Denmark, the dividend level is expected to remain moderate. Dividend on preference shares amounts to 20 kronor per year with quarterly payments. The dividend will remain in accordance to articles of association of the company.
12
Heimstaden will continue as asset manager of HBAB (former Nordhalla Fastigheter) Terms for Heimstaden as asset manager and majority owner of HBAB
Heimstaden AB will remain as asset and property manager of the portfolio by existing asset managment agreement between Heimstaden and HBAB. The asset management includes strategic, financial and operational management of HBAB and its assets.
The board of HBAB will consist of four members, one representative for each owner.
Asset management overview and capitalisation from owners in brief
Heimstaden Förvaltnings AB Property Management
65% Equity* 35% Subordinated shareholder loan*
Heimstaden AB Asset Management Sandvik
HBAB
Ericsson
35% Equity 65% Subordinated shareholder loan
Alecta PropCos Intresse bolag Intresse bolag
11
*) The equity and subordinated shareholder loans will be provided through the wholly owned subsidiary, Heimstaden Investment AB
Portfolio overview – pre merger HBAB portfolio per 30.6.2016
Heimstaden portfolio per 30.6.2016 (excl. HBAB) mkr 1 227 (8%)
Region Norr
Öresund Mälardalen mkr 3 047 (20%)
Norr Gävle
Mälardalen mkr 1 160 (17%)
Norr Syd
mkr 2 648 (38%)
Uppsala
tkvm 87 312 (11%)
Region Norr
Öresund
Syd mkr 10 348 (67%)
Skellefteå/Luleå
mkr 1 201 (17%)
Location
mkr 1 999 (28%)
Uppsala
Katrineholm Strängnäs
Segment
Norrköping
Region Mälardalen
Segment
Location
mkr 745 (5%)
Residentials Commercial
tkvm 76 154 13%
Region Mälardalen Residentials Commercial Vetlanda
Värnamo Hyltebruk
Market value1
tkvm 736 992 (89%)
15 367 mkr Number of properties
282 Number of apartments
Market value1
Karlskrona Landskrona Lund Malmö Copenhagen Ystad Trelleborg
tkvm 531 444 87%
7 008 mkr
Ronneby
Region Syd
Växjö Ljungby Örkeljunga Karlskrona
Klippan
Region Syd
Number of properties
204
Region Öresund
Number of apartments
8 683
9 347
1) Including recently announced acquisitions in Copenhagen and in Luleå
14
Region Öresund
Portfolio overview – post merger Heimstaden wholly owned portfolio post merger per 30.6.2016
HBAB portfolio post merger per 30.6.2016
mkr 7 248 (43%)
Location
Skellefteå/Luleå
Öresund mkr 2 474 (15%)
Mälardalen
Region Norr
Norr
mkr 20 (0%)
mkr 270 (6%)
Öresund Mälardalen
Gävle
Syd
Syd
mkr 4 103 (24%)
Uppsala mkr 4 429 (94%)
Katrineholm Strängnäs
tkvm 154 634 (14%)
Segment
Norrköping
Norrköping*
Region Mälardalen
Segment
Location
mkr 2 979 (18%)
Residentials Commercial
Residentials
Vetlanda Hyltebruk
Market value
tkvm 982 657 (86%)
17 926 mkr Number of properties
463
Värnamo Växjö
tkvm 109 808 (100%)
Market value
Ljungby Örkelljunga Karlskrona Klippan Landskrona Ronneby Lund Region Malmö Ystad Trelleborg
4 449 mkr Number of properties
Syd
Copenhagen
23
Region Öresund
Number of apartments
Number of apartments
16 875
1 155 *) Heimstaden holds a development site i Norrköping to a value of 20 mkr
15
Portfolio overview – Heimstaden post merger Heimstaden portfolio consolidated (incl. HBAB) per 30.6.2016
Location
mkr 3 226 (14%)
Comments
Skellefteå/Luleå* mkr 11 549 (52%)
mkr 3 393 (15%)
Market value1
Externally confirmed market values per Q2 2016 – 22 375 mkr
Occupancy rate (economic) for Q2 2016: 97,6%
Öresund
Region Norr
Mälardalen Norr
Occupancy rate2
-
Gävle
Residential properties: 99,2% Other: 89,2%
Syd
mkr 4 207 (19%)
Uppsala
Segment
Norrköping
Geographically well diversified portfolio of 486 properties consisting of residential properties in strong micro locations in Swedish growth areas and in Copenhagen.
Rental income (R12m): 1 426 mkr NOI 2 (R12m): 742 mkr
A substantial part of the commercial areas consist of shop/restaurant premises located on the entrance floor in residential properties
Heimstaden has an insignificant exposure to properties defined as ”miljonprogram”. This since the low risk asset strategy applied by Heimstaden requires a central location of the asset and economically satisfying profile of the tenants.
Region Mälardalen
Key ratios2
Residentials Commercial
Diversified portfolio
Katrineholm Strängnäs
tkvm 163 466 (11%)
Vetlanda Värnamo Hyltebruk
Market value1
tkvm 1 268 436 (89%)
22 375 mkr Number of properties
486
Växjö
Ljungby Örkelljunga Karlskrona Klippan Landskrona Ronneby Lund Region Malmö Syd Copenhagen Ystad Trelleborg
Asset class
Region Öresund
Number of apartments
18 030 1) Including recently announced acquisitions in Copenhagen and in Luleå 2) Excluding recently announced acquisitions in Copenhagen and in Luleå
16
Earning capacity for Heimstaden group (consolidated incl. HBAB) post merger, per 30.6.2016
mkr Rental income Operational costs and maintenance
1 426 -684
Net operating income
742
Central administration
-57
Other operational income Other operational costs Shares in results from associated companies Operating profit
-3 0 688
-104
Financial costs - other interest bearing debt
-181
Profit before tax
Key ratios:
6
Financial income Financial costs related to sub. shareholder loans from noncontrolling shareholders
1
403
Profit before tax related to: Heimstaden AB as shareholder Other shareholders with non-controlling holdings
The earning capacity is calculated as 12 months earnings based on the portfolio per 30.6.2016. It is shown for illustrative purposes only and shall under no circumstances be seen as a forecast. It entails no estimations of rent levels, vacancies, operational or financial costs.
312 91
17
Surplus ratio:
52%
Interest cover ratio (excl. fin. costs related to sub. shareholder loans:
3,80x
Interest cover ratio:
3,23x
Proforma balance sheet for Heimstaden group (consolidated incl. HBAB) post merger, per 30.6.2016
Assets
mkr
Equity and liabilities
Fixed assets
Equity
Real estate
21 097
Inventories
5
where of capital related to non-controlling shareholders
Shares in associated companies
14
Long-term liabilities
Other financial assets
34
Sub. shareholder loans from non-controlling shareholders
Total fixed assets
Interest bearing liabilities
21 151
Current assets Other short term receivables
67
Cash position
3 523
Total current assets
3 590
mkr 7 303 1 043
2 578 11 638
Derivatives
161
Deferred tax
861
Total long-term liabilities
15 237
Short-term liabilities Interest bearing liabilities
1 876
Other short-term liabilities
325
Total short-term liabilities
2 201 0
Total assets
24 741
Total liabilities and equity
LTV (net)
47%
Solvency
30%
Solvency (sub. shareholder loans as equity)
40%
The value of the real estate deviates from page 16 since the announced acquisitions in Copehagen and Luleå in Q3 is not included in the proforma.
18
24 741
Liability overview – third party financiers of the Heimstaden group (consolidated incl. HBAB) per 30.6.2016 Counterparts – financing consolidated per 30.6.2016*
Credit terms and interest rate terms consolidated per 30.6.2016*
19% 15% Key ratios Average interest rate (incl derivatives)
1,60%
12% 11%
1,66%
8%
Average maturity loan portfolio (y)
11,6
8,9
Hedged share of loan portfolio
25%
29%
Average interest term (y)
0,9
1,0
Loan maturity - consolidated per 30.6.2016*
17%
4%
3%
2% 1%
0% 2017
2018
2019
2020
2021
2023
Nordic Bank 1
Nordic Mortgage bank 3
Nordic Bank 2
Nordic Bank 3
Bond
Nordic Bank 4
All major Nordic banks and mortgage banks as cooperation partners
Well diversified loan maturity profile
Interest rate hedging based on internal risk model/process to assure that the financial policy as well as bank covenants are met, and interest costs are minimized.
15% 14%
5%
2016
7%
Financial policy
19%
3%
8%
5%
Nordic Nordic Mortgage Mortgage bank 1 bank 2
15%
15%
Heimstaden pre Heimstaden post merger merger
2024
2033
2034
2044
2046
*)Excluding recently announced acquisitions in Copenhagen and in Luleå
19
Nordic bank 5
Key message and rationale behind the offer to the bondholders
The external legal advisor of Heimstaden classifies the merger to be in accordance to the terms and conditions of the bond. This view has been confirmed by the bond agent. Heimstaden considers the merger to be in line with the company’s strategy . It is also seen as value increasing and improving the financial strength of the company. We are further of the opinion that the merger is rating neutral. Since the merger is a substantial change to the structure of the Heimstaden group and since JV-partners will be joining as minority shareholders to the bulk of the cash flow generating assets the board of Heimstaden has decided to provide a tender offer to the bondholders. Heimstaden has no intentions to redeem the bond nor any interest to execute any call option part of the terms and conditions of the bond. The only purpose of the tender offer is to assure a reasonable market price for any holder of the bonds who for any reason considers the merger to be of negative character for the bondholders as lender. The terms of the offer is communicated separately in the Tender Offer Letter.
20
Heimstaden Bostad AB (former Nordhalla Fastigheter AB) – financially strong ownership with focus on buy and hold of Nordic residential properties
21
The board of HBAB and CEO – post merger Position
Description Kent Jonsson Chairman of the board
Kenneth Norling Member of the board
Christer Franzen Member of the board
Magnus Nordholm Member of the board
Patrik Hall CEO
Mr Jonsson is the head of indirect real estate investments at Alecta. He has previous experience as appraiser and analyst at inter alia Catella, DTZ and SPP Investment Management. Mr Jonsson is member of the board of several reputable Swedish property companies such as Hemfosa Fastigheter AB and Ancore Fastighets AB.
Mr Norling is part of the Corporate Finance team of Sandvik with inter alia responsibility for the asset management of the Swedish Pension fund. He has previous experience from treasury at City of Stockholm. Mr Norling is member of the board of Luleälven Fastigheter AB and Svenska Bostadsfonden Institution 1 AB.
Mr Franzen is the CEO of Ericssons Pensionsstiftelse and was previously Deputy Head of Markets at Ericsson Treasury Services and Head of Trading at Ericsson Treasury Services US. Mr Franzen is member of the board of the Swedish real estate companies Vacse AB and Nordika Fastigheter AB.
Mr Nordholm is the Deputy CEO of Fredensborg AS and deputy CEO as well as member of the board of Heimstaden. He previously held the position as CFO of Heimstaden and before that he was Head of Structured Real Estate Finance Nordic at HSH Nordbank AG, Copenhagen branch.
Mr Hall is the CEO of Heimstaden and member of the board of Heimstaden Mr Hall previously held the position as Head of Negotiations at the Tenant Association and holds the degree of Lieutenant in the Royal Swedish Army
22
The concept and financial risk policy of Heimstaden Bostad AB Business model
The aim of the company is to provide a sustainable value growth and operational cash flow through a strong focus on asset managment and maintenace of the assets.
HBAB shall hold properties based on the following criteria In regions with stable and positive population growth and characterized by a diversified labour market In regions where HBAB is able to reach a substantial ownership of real estate Strong micro location In areas with an expected long term vacancy ratio < 3 % Good technical standard
Dividend policy
Financial policy in brief
The company will pay out excess liquidity as dividend subject to:
Solvency ratio (excluding sub. shareholder loans) > 25 %
The solvency ratio (including shareholder loans) is > 25 %
Net LTV of 65 % on group level (excluding sub. shareholder loans)
The cash position (including unconditional overdraft facilities) amounts to >1 % of the market value of the properties
Hedging ratio: based on internal risk model but never less than 25 % of bank loans/capital market loans
The dividend amounts to < nonrestricted equity
Cash position: > 1% of the market value of the underlying assets
Strong ownership with long-term committment Share holdings
Share of subordinated loans*
Alecta – 23 %
Alecta – 43 %
Sandvik – 3 %
Sandvik – 6 %
Ericsson – 9 %
Ericsson – 17 %
Heimstaden - 65 %
Heimstaden – 35 % * Including shareholders loans provided before the merger
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For further information please contact
Magnus Nordholm Deputy CEO @mail:
[email protected] Mob: +46 705 29 31 44 HEIMSTADEN AB ÖSTRA PROMENADEN 7A 211 28 MALMÖ SWEDEN WEB: WWW.HEIMSTADEN.COM
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