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Table of contents Financial update Key figures .............................................................................................................................................................................................................. 3 Portfolio valuation .................................................................................................................................................................................................. 4 Financing ................................................................................................................................................................................................................. 6 Yield spread ............................................................................................................................................................................................................ 7 Appendix Highlights ................................................................................................................................................................................................................ 8 Tenants lease expiry .............................................................................................................................................................................................. 9 Exposure overview ................................................................................................................................................................................................ 10 Exposure to locations ........................................................................................................................................................................................... 11

Emil Eriksrød 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)

39 484

Average size per property

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 NĂŚringspark 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: post@r8property.no W: r8property.no

Portfolio report q4 2015 r8 property