Stendörren Fastigheter : Interim Financial Report Jan-Dec 2021

INTERIM FINANCIAL REPORT

JANUARY -

DECEMBER 2021

Photo: Property Heiasvingen 33, Lillestrøm in Norway

THE YEAR IN SHORT

NET PROFIT:

MSEK 267

NET OPERATING INCOME:

RENTAL INCOME:MSEK 488

MSEK 653

JANUARY-DECEMBER 2021

SIGNIFICANT EVENTS DURING THE FOURTH

(January-December 2020 in brackets)

QUARTER

• Rental income increased by 3 % to SEK 653 million (631) and net operating income increased to SEK 488 million (481).
• Income from property management increased by 5 % to SEK 267 million (254).
• Net letting during the year amounted to a total of app- roximately SEK 40 million (net lettings if Exploria AB´s bankruptcy is excluded amounts to SEK 57 million) and new lease agreements with an annual rental value of approximately SEK 79 million were signed.
• Lease renegotiations during the period led to an increase in rental values of 22 % on a weighted average.
• Cash flow from operating activities amounted to SEK 223 million (274), corresponding to SEK 7.87 per share (9.68).
• Changes in value of investment properties for the period amounted to SEK 1,235 million (98).
• Profit for the period increased to SEK 1,209 million (256), corresponding to SEK 40.75 per share (7.17) befo- re dilution and 40.67 per share (7.17) after dilution.
• The Board's proposal to the Annual General Meeting is no dividend in favor of reinvestment in the business.

• On October 1, 2021, the property Västerås Skonerten 2 was closed, comprising of approximately 4,700 sqm of premises and an underlying property value of SEK
  48 million.
• During the quarter, building permits were obtained for Viby 19:66, Hjulsmeden 1 in Västerås and Librobäck 21:3 in Uppsala regarding logistics and light industrial.
• During the quarter, a number of new leases were signed, including a 10-year lease agreement with Uppsala Vatten och Avfall AB regarding the Husbyborg 15: 1 property in Uppsala, which covers a total of 2,779 sqm.
• During November 2021, Stendörren issued bonds with a nominal value of SEK 600 million with a maturity of 3.75 years and a variable interest rate of 3 months STIBOR plus 390 basis points.
• During the fourth quarter Stendörren made its first three acquisitions in the Copenhagen region. In November, the industrial and warehouse property Pedersholmparken
  10 and 13, Frederikssund in Copenhagen was acquired. Property value amounts to SEK 135 million and lettable area to 9,511 sqm. In December, the warehouse proper- ty Sandvadsvej 7, Köge, was acquired. Property value amounts to SEK 41 million and lettable area 3,054 sqm. In December, the warehouse property Avedöreholmen 51,

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SWEDEN

DENMARK

NORWAY

LETTABLE AREA:	EQUTY RATIO:
43 %1)
793,000 SQM

LTV:

FAIR VALUE:46 %

MSEK 11,693

Hvidovre was also acquired. The property value amounts to SEK 29 million and lettable area to 2046 sqm. All properties are fully rented.

• On December 8, 2021, the warehouse property Servitri- sen 3 in the Långängarna district in Västerås was closed. The property covers 4,302 sqm and the property value amounts to SEK 65.5 million. The property is fully rented until February 28, 2026.
• On December 1, 2021, Stendörren's Chairman of the Board Anders Tägt announced that he would decline re-election at the 2022 Annual General Meeting.
• On December 17, 2021, the industrial and warehouse pro- perty Heiasvingen 33, Lillestrøm in Oslo was closed. The property became Stendörren's first acquisition in the Oslo region. Property value amounts to approximately SEK 55 million and lettable area to 2,850 sqm. The property is fully rented until July 31, 2031.
• On December 20, 2021 an agreement was entered into, along with two of the company's major lenders, an agre- ement regarding sustainability-linked loan facilities of a total of SEK 1.7 billion, linked to the company's sustaina- bility goals. The loan facilities fit within the existing loan volume.
• On December 21, 2021, the Grönsta 2:65 warehouse property in the Svista area in Eskilstuna was acquired, in direct connection to existing and future logistics establish- ments, with access in 2022. Property value amounts to SEK 64.3 million and lettable area to approximately 5,000
  1) The stated equity ratio is calculated excluding the leasing debt brought by the application of IFRS 16. If this item would be included in the calculation the equity ratio would be negatively impacted by approximately 0.8 %.

sqm. The property is fully rented with a lease agreement running for 10 years from the date of occupancy.

• In December, interest-caps were acquired with a Stibor cap level of 2 % and a total nominal value amounting to SEK 1,850 million.

SIGNIFICANT EVENTS AFTER THE REPORTING PERIOD

• On January 4, 2022, the company's fourth acquisition was made in the Copenhagen region when the industrial property Kirstinehøj 3 in Kastrup was acquired. Under- lying property value amounted to approximately SEK 42 million and the total lettable area amounted to 4,772 sqm. The property is fully rented.
• On January 11, 2022, the shareholders of Stendörren Fastigheter AB (publ) were summoned to an Extraordi- nary General Meeting on February 4, 2022. The AGM appointed board member Andreas Philipson as the new chairman of the board, following the resignation of former board member and chairman of the board Anders Tägt.
• On January 20, 2022, a legally valid building permit was obtained in logistics in Almnäs, Södertälje.
• On January 24, 2022, a 10-year lease was signed for the property Viby 19:13 in Brunna in Upplands-Bro munici- pality. The tenant will access the property, in May 2022, to premises of approximately 2,700 sqm and land areas of approximately 11,500 sqm.

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TABLE OF CONTENT

Stendörren overview.............................................................................................................................	5
Key ratios....................................................................................................................................................	6
THE BUSINESS
Consolidated statement of comprehensive income...............................................................	.8
Comments to the consolidated income statement.................................................................	.9
Consolidated statement of financial position......................................................................... ..	10
Comments to the consolidated statement of financial position........................................	11
Consolidated changes in equity......................................................................................................	12
Consolidated cash flow statement.......................................................................................	13
Property portfolio summary.....................................................................................................	14
Projects portfolio summary...................................................................................................	17
Property valuation..................................................................................................................	19
Financing..................................................................................................................................	20
Sustainability........................................................................................................................................	21
Condensed parent company..........................................................................................................	23
Share capital and ownership..................................................................................................... .....	25
Other information.................................................................................................................................	26
The board of directors........................................................................................................................	27
Appendix 1, Assessed earnings capacity...................................................................................	28
Definitions...............................................................................................................................................	29

In this report there may be found summation deviations in individual tables due to roundings.

Stendörren Fastigheter AB (publ) is an expansive real estate company listed on Nasdaq Stockholm Mid Cap. Our business concept is to create long-term profitable substance growth by managing, developing and acquire properties and building rights in logistics and light industry in growth regions. In addition, we refine commercial and industrial properties by creating housing rights for further development and management in attractive locations, primarily in Greater Stockholm and the Mälardalen region. (Ticker: STEF B).

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STENDÖRREN OVERVIEW

MISSION & OBJECTIVES

Stendörren Fastigheter AB (publ) is an expansive real estate company listed on Nasdaq Stockholm Mid Cap. Our business concept is to create long-term profitable substance growth by managing, developing and acquire properties and building rights in logistics and light industry in growth regions. In addition, we refine commercial and industrial properties by creating housing rights for further development and management in attractive locations, primarily in Greater Stockholm and the Mälardalen region.

FINANCIAL OBJECTIVES

• Exhibit a long-term average annual return on equity of at least 12 %
• Achieve a growth in long term net asset value exceeding 15 %
• Achieve a long-term interest coverage ratio of at least 2.0 times
• Maintain a long-term equity / assets ratio of 35 % (and never less than 20 %)

PROPERTY PORTFOLIO

As at December 31, 2021, the property portfolio of Sten- dörren consisted of 135 properties, primarily located in the Greater Stockholm and Mälardalen region with a total market value of SEK 11,693 million. The ten largest lease agreements accounted for about 24 % of the total annual rent and the company's largest lease agreement with Coop Sweden represents 11 % of the total annual rent.

The total estate portfolio comprised a total of approximately 793,000 sqm of which warehouse, logistics and light industrial properties accounted for approximately 67 % of the total lettable area.

At the end of the year, the company had 28 properties, wholly or partly consisting of building rights which, when fully developed, are expected to create approximately 652, 000 sqm of total building area (but may differ from

what is technically and commercially feasible), mainly for warehouse, logistics, light industrial use as well as for residential use. The market value of the building rights portfolio amounts to SEK 1,634 million (1,363) at quarter end.

Within the existing real estate portfolio, the company is working with the development of new detailed plans for residential assets. The development and planning work, which are at different stages of the process, are likely to result in building rights for up to 1,500 new units at completion. The status of the planning has been considered in determining the market value of these building rights. The company's residential building rights represent approximately one third of the valuation of the entire building rights portfolio.

FINANCING

As of December 31, 2021, the company's equity amounted to SEK 5,216 million (4,053) and the Group's interest-bearing liabilities amounted to SEK 5,624 million (5,099), corresponding to a loan-to-value ratio of 46 % (50).

The average time to maturity of interest-bearing liabilities amounted to 2.5 years (2.6) and the average fixed-interest term to 3.7 years (2.5). The average interest rate on the com- pany's total interest-bearing loans amounted to 2.3 % (2.2) and the average interest rate on loans from credit institutions was 1.9 % (1.9). At year end, the company had one outstanding bond of SEK 700 million with a nominal interest rate of Stibor 90 plus 3.65 %, maturing in April 2024 and a bond loan of SEK 600 million with an interest rate of Stibor 90 plus 3.90 % with a final maturity in August 2025.

DIVIDEND

Stendörren's assessment is that the best long-term total return is generated by reinvesting the profits in the business to create further growth. The company will thus continue to grow by investing into existing assets, new acquisitions, and the development of new assets. The dividend will therefore be low or absent in the coming years.

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