KMC Properties ASA - First half 2023: Continued value accretive growth, reduced overall interest margin and CPI adjustments reducing high inflation impact

10.08.2023 05:00

KMC Properties ASA, a real estate company focusing on industrial and logistic properties, recorded rental income of NOK 104 million for the second quarter of 2023, up 60% from NOK 65 million in the same period last year. The increase is primarily driven by income from new investments, in addition to a weighted average CPI adjustment of rent of 7.5% on 1 January. For the first half 2023 the rental income was NOK 199 million, up from NOK 127 million the same period last year. In the second quarter the company secured a full refinancing of its NOK 1,850 million senior secured bond and its NOK 200 million revolving credit facility. The refinancing improved KMC Properties debt structure by increasing its share of low margin bank debt from 38% to 69% and reduced its overall interest from 6.45% to 6.02% from the end of the second quarter to July 2023 respectively. "Our ability to refinance at lower interest margins in the current macro environment is a testament to the hard work laid down by the team over the past years, the quality of our assets and our strong tenants. For us this refinancing represents a major milestone, and we now look forward to continue to grow our portfolio, utilising our operational leverage to further strengthen our cash flow - currently stretching all the way into 2040." says Liv Malvik, CEO of KMC Properties. At the end of the second quarter 2023, the company's investment properties were valued at NOK 6 032 million, up from NOK 4 247 million at the end of the second quarter 2022 and from NOK 5 993 million at the end of the previous quarter. The increase is due to accretive investments and currency effects. KMC Properties remains committed to its investment strategy, focusing on properties in Northern Europe with solid tenants in established industries, in addition to greenfield and capex projects in collaboration with current and new tenants. The company's investments have increased the overall EBITDA yield due to increased utilization of the current organization and KMC Properties will continue its accretive growth towards its goal of a GAV of NOK 8 billion by year end 2024. Live webcast, today at 10:00 CEST CEO Liv Malvik and CFO Kristoffer Holmen will present the company's financial results for the quarter from 10:00 am CEST today, Thursday 10 August 2023. The webcast can be accessed through the following link: https://channel.royalcast.com/landingpage/hegnarmedia/20230810_5/ The presentation will be held in English and questions can be submitted throughout the event. A recording of the webcast will be made available from the company's website. For further information, please contact: Liv Malvik, CEO of KMC Properties ASA, tel. +4748003175 Kristoffer Holmen, CFO KMC Properties ASA, tel. +4792814862 About KMC Properties ASA KMC Properties, is an Oslo Børs-listed real estate company focusing on industrial- and logistic properties. The company has a diversified portfolio of properties in the Nordics and the Netherlands. The properties are strategically located and have long lease agreements with solid tenants. KMC Properties has an ambitious strategy to grow the portfolio through further development of existing properties, as well as M&A initiatives. The information is such that KMC Properties ASA is required to disclose in accordance with the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 07:00 CEST on 10 August 2023.