KMC Properties - Third quarter 2023: Transformative acquisition strengthens all KPIs and brings in new strategic and institutional owner

26.10.2023 05:00

KMC Properties ASA, a real estate company focusing on industrial and logistic properties, recorded rental income of NOK 104 million for the third quarter of 2023, up 58 per cent from NOK 66 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 per cent on 1 January 2023. For the first nine months of 2023 the rental income was NOK 303 million, up from NOK 193 million for the same period last year. In the third quarter, KMC Properties announced that the company had entered into an agreement with BEWI ASA for the acquisition of the final part of the industrial real estate portfolio, including seven properties for a total consideration of NOK 625 million. With a gross yield of 8.75 per cent and an average WAULT of 17 years, the portfolio is accretive to KMC Properties. The transaction is financed with approximately NOK 290 million in bank debt from Nordea with an interest margin of 1.25 per cent, which will bring the overall interest margin down to 3.15 per cent, when completed, NOK 275 million new equity, and NOK 60 million in available liquidity. The equity is provided by Nordika, a large and strategic Nordic real estate investor, which will assume an ownership of 12.7 per cent in KMC Properties, with an option to increase further. "We are pleased to deliver on our accretive growth plan and to bring a new strategic investor onboard. In addition, attractive new bank debt shows that we receive continued support from banks in times of increased macro uncertainty. The transaction improves all our KPIs and brings us closer to our vision of becoming the preferred real estate partner for logistic and industrial companies" says Liv Malvik, CEO of KMC Properties. At the end of the third quarter of 2023, the company's investment properties were valued at NOK 5 900 million, up from NOK 4 502 million at the end of the third quarter of 2022 and down from NOK 6 032 million at the end of the previous quarter. The decrease is primarily due to a NOK 116 million investment property valuation adjustment, corresponding to 1.9 per cent quarter-on-quarter. 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 08:30 CEST CEO Liv Malvik and CFO Kristoffer Holmen will present the company's financial results for the quarter from 08:30 am CEST today, Thursday 26 October 2023. The webcast can be accessed through the following link: 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 26 October 2023.