Investor Presentation • Feb 7, 2022
Investor Presentation
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Leading owner and operator of shopping centers
Investor presentation – February 7th 2022
Risk factors Summary About Aurora The portfolio Buskerud Storsenter Current market situation Q4 – 2021 Aurora Eiendom AS
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This company introduction (the Investor Presentation) has been prepared by Aurora Eiendom AS (the Company) with the assistance from Sparebank 1 Markets AS, DNB Markets, a part DNB Bank ASA, and Pangea Property Partners AS (collectively, the Managers), to provide information solely for use in connection with a contemplated equity offering of shares in the Company (the Transaction). The Managers have been appointed by the Company as Global Coordinators and Bookrunners in connection with the Transaction. The use of this document, or any of the information included herein (the Information) for any other purpose is strictly prohibited. This Investor Presentation and the Information may be confidential and shall not be reproduced, redistributed, published, or passed on to any other person, directly or indirectly, in whole or in part, without prior written consent of the Company or the Managers. If this document has been received in error, it must be returned immediately to the Company. The Transaction will be completed based on a Term Sheet, an Application Agreement, and this Company Introduction, all dated 7 February 2022, in addition to available public information (collectively, the Investor Documentation). The Application Agreement will prevail in case of inconsistency in the Offering Materials. The Company Introduction and the Information may be used by the recipient only for the intended purpose. No liability the Company nor the Managers do not accept any responsibility whatsoever, or make any representation or warranty, express or implied, for the contents of the Investor Presentation, including its accuracy, completeness, or verification or for any other statement made or purported to be made in connection therewith the Company. The information in this Investor Presentation and any other material discussed is subject to change. This Investor Presentation speaks only as of its date, and the views expressed are subject to change based on several factors, including, without limitation, macroeconomic and equity market conditions, investor attitude and demand, the business prospects of the Company and other specific issues. The delivery of this Investor Presentation shall, under no circumstances, be construed to indicate or imply that there has been no change in the affairs of the Company since the date hereof. The Company does not assume any obligation to update or revise the Investor Presentation or the Information. This Investor Presentation and the conclusions contained herein are necessarily based on economic, market and other conditions, as in effect on, and the information available to the Company as of, its date. This Investor Presentation does not purport to contain a complete description of the Company or the market(s) in which the Company operates, nor does it provide an audited valuation of the Company. The analyses contained in this Investor Presentation (if any) are not, and do not purport to be, appraisals of the assets, stock or business of the Company or any other person.
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The risks and uncertainties described herein are the principal known risks and uncertainties faced by the Company as of the date hereof that the Company believes are the material risks relevant to an investment in the shares. An investment in the Company's Shares is suitable only for investors who understand the risks associated with this type of investment and who can afford a loss of all or part of their investment. The absence of a negative experience associated with a given risk factor does not mean that the risks and uncertainties described herein should not be considered prior to making an investment decision. If any of the risks were to materialize, individually or together with other circumstances, it could have a material and adverse effect on the Company and/or its business, financial condition, results of operations, cash flow and/ or prospects, which may cause a decline in the value of the shares that could result in a loss of all or part of any investment in the shares. The risks and uncertainties described below are not the only risks the Company may face. Additional risks and uncertainties that the Company currently believes are immaterial, or that are currently not known to the Company, may also have a material adverse effect on its business, financial condition, results of operations and cash flow. The risk factors is described in more detail in the Company's information document dated 15 December 2021. Before making an investment decision, investors should carefully consider these.
Information document: https://newsweb.oslobors.no/obsvc/attachment. obsvc?messageId=549375&attachmentId=229311&obsvc.item=1
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Risk factors Summary About Aurora The portfolio Buskerud Storsenter Current market situation Q4 – 2021 Aurora Eiendom AS
Total portfolio value of NOK 6.4bn, with rental income of MNOK 380 and total lettable area of 145 100 sqm. ¹
All centers in Aurora Eiendom included in Alti's comprehensive, overall ESG plans, going forward.
Ambition to further grow the portfolio of shopping centers.
During the pandemic, physical retail has demonstrated its position and stickiness among Norwegian consumers.
Risk factors Summary About Aurora The portfolio Buskerud Storsenter Current market situation Q4 – 2021 Aurora Eiendom AS
To build the future of retail by converging digital and physical retail, and creating an ideal environment for both tenants and customers.
To own, operate and develop leading shopping destinations, and create value for customers, tenants and investors.
Shopping centers and adjacent assets and projects that will enhance the retail destination.
Shopping centers that are leading or have the potential to become leading in their local markets.
Large and medium-sized cities in Norway with good catchment area.
Opt out of deals that do not fit Aurora Eiendom's strategy and portfolio (proper growth).
Profiled investor and businessman best known for his ownership in Nordic Choice. Extensive experience with retail – helped rebuild Steen & Strøm in 1991 and was one of the cornerstone investors in Sektor Gruppen before it was sold to Citycon in 2015. Lars Ove holds a BSc in Retail Management from BI Norwegian Business
School and a MSc in Real Estate Developement from NMBU. He has extensive experience in shopping center management, and has been CEO of Alti Forvaltning since 2018. Prior to Alti, Lars Ove was trainee at Olav Thon Gruppen and retail consultant at BigBlue & Company.
Majority owner of the largest grocery chain in Norway, Norgesgruppen. Significant real estate owner and one of the cornerstone investors in Sektor Gruppen (31 %) before the company was sold in 2015.
Before joining Alti Forvaltning in September 2021, Aage was Regional Director at Olav Thon Gruppen for 9 years. Aage has previously worked as Property Manager and Regional Director at Amfi Drift AS. Before starting his career in shopping center management, Aage worked in retail, production and wholesale. Aage holds degrees at Norsk Kjøpmannsinstitutt and BI.
Lars Løseth is regarded as one of the leading shopping center experts in Norway. Best known as the founder of AMFI, a significant owner and the largest operator of shopping centers in Norway.
Kathrine holds MSc in Economics and Finance from Université Toulouse 1 Capitole in France. She has work experience from IBM, Danske Markets Corporate Finance, Amfi Eiendom AS and Sparebank 1 Nordmøre. Kathrine joined Alti Forvaltning in July 2021.
Marius is the CEO and Chairman of Varner, one of Norway´s largest retail companies. Cornerstone investor in Sektor Gruppen (27%) before the company was sold to Citycon in 2015.
BOARD MEMBER
BOARD MEMBER
CFO
BOARD MEMBER
COO
CHAIRMAN
CEO
| Investor / SPV | Number of shares: | Ownership interest: |
|---|---|---|
| Eiendomsspar AS | 3 500 000 | 17.03 % |
| Joh Johannson Eiendom AS | 3 000 000 | 14.60 % |
| Alti Invest AS | 2 160 000 | 10.51 % |
| NREP (NSF IV Norway Holding 10 AS) | 2 000 000 | 9.73 % |
| Strawberry Shopping AS | 1 500 000 | 7.30 % |
| AS Clipper | 1 000 000 | 4.87 % |
| Stokke Industri Eiendom AS | 1 000 000 | 4.87 % |
| Varner Invest AS | 1 000 000 | 4.87 % |
| Verdipapirfondet Nordea Norge Verd | 500 000 | 2.43 % |
| Carucel Invest AS | 500 000 | 2.43 % |
| Uthalden Eiendom AS | 400 000 | 1.95 % |
| Brødrene Johannessen Eiendom AS | 300 000 | 1.46 % |
| Byggteknikk Invest AS | 300 000 | 1.46 % |
| Kverva Eiendom AS | 250 000 | 1.22 % |
| Peak Invest | 200 000 | 0.97 % |
| Næringslivets Hovedorganisasjon | 168 000 | 0.82 % |
| Vivo Invest AS | 167 000 | 0.81 % |
| Oald Invest AS | 165 000 | 0.80 % |
| Skandinaviska Enskilda Banken AB | 161 000 | 0.78 % |
| Fine Line Holding AS | 155 000 | 0.75 % |
| Ligna AS | 150 000 | 0.73 % |
| Investire Eiendom AS | 126 000 | 0.61 % |
| STH Holding AS | 125 200 | 0.61 % |
| Erbe Invest AS | 100 000 | 0.49 % |
| Auticon Holding AS | 84 000 | 0.41 % |
| Banan II AS | 84 000 | 0.41 % |
| Gec Holding AS | 83 799 | 0.41 % |
| Thrane-Steen Næringsbygg AS | 75 600 | 0.37 % |
| Vater Holding II AS | 63 000 | 0.31 % |
| Pangea Property Partners AS | 50 400 | 0.25 % |
| Other | 1 182 401 | 5.75 % |
| Total (248 investors as of 04-02-2022) | 20 550 400 | 100.00 % |
Shares admitted to trading on Euronext Growth Oslo
Admission date: 15.12.2021 Ticker: «AURA»
ISIN: NO0011032310 Admitted: 20 550 400
Acquisitions July 2021 – February 2022
Portfolio GAV incl. developement projects: MNOK 6 398
| Alti Nordbyen | ||||
|---|---|---|---|---|
| Nerstranda Senter | ||||
| Amanda Storsenter |
||||
Well-kept quality assets.
Each prospective center is analysed thoroughly.
Contract by contract evaluation with center managers and leasing managers.
Third party due diligence carried out by industry leading advisers.
Aurora Eiendom focuses on occupancy rates for the simple reason that (1) leased premises contribute to running cash flow and (2) fully let centers with a good and diversified offering have higher footfalls, which is the most valuable currency for a shopping center. Footfall leads to increased turnover, which in turn affects the tenants ability to pay higher rents.
Aurora Eiendom focuses on streamlining common costs. Healthy common cost levels allow tenants to pay higher rents.
Aurora Eiendom follows and analyses recent trends and changed purchasing patterns, and is willing to invest in the future shopping centers. In today's market there is a window of opportunity to take market shares by understanding customer preferences and adapting swiftly.
Aurora Eiendom – Current portfolio (7) ¹
Other centers under management (25)
Alti Forvaltning AS
(Approx. figures including Aurora Eiendom)
Aurora and Alti is one of the strongest alliances in the Norwegian shopping center industry
MNOK +19 600
140
PORTFOLIO AREA / PROPERTIES:
MNOK +1 244 RENTAL INCOME
GROSS TENANT TURNOVER (SHOPPING CENTERS)
EMPLOYEES
(50 in the administration and 90 at the managed properties)
The company has initiated several sustainability measures, including framework agreement for high-speed charging stations at all Alti centers.
One of Alti's goals is to utilize more of its center's large roof-areas with environmentally friendly initiatives.
Alti strives to be a positive force in all their engagements, which includes engaging in, and listening to the local communities.
Focus on its employees – important for Alti to facilitate the well-being and happiness of their employees.
The centers are BREEAM In-Use classified:
All centers will be included in Alti's overall ESG plans going forward.
Risk factors Summary About Aurora The portfolio Buskerud Storsenter Current market situation Q4 – 2021 Aurora Eiendom AS
| Shopping center | Amanda | Nerstranda | Alti Nordbyen | Vinterbro | Farmandstredet | Aurora | Buskerud | New Total Aurora |
|---|---|---|---|---|---|---|---|---|
| Location | Haugesund | Tromsø | Larvik | Ås | Tønsberg | SUM | Drammen | SUM |
| Gross lettable area (sqm) | 14 600 | 12 000 | 16 000 | 34 000 | 36 500 | 113 100 | 32 000 | 145 100 |
| Retail area (sqm) | 14 015 | 8 721 | 14 558 | 30 028 | 27 533 | 94 856 | 28 585 | 123 441 |
| Footfall - 2021 (millions) ¹ | 2.2 | 1.6 | 1.4 | 3.1 | 3.6 | 11.9 | 2.0 | 13.9 |
| Footfall per retail area ³ | 108.8 | 183.5 | 96.2 | 103.2 | 130.8 | 125.5 | 70.0 | 112.6 |
| Gross turnover tenants - 2021 (MNOK) ¹ | 1 062 | 445 | 563 | 1 776 | 1 358 | 5 204 | 1 197 | 6 401 |
| Turnover pr retail area ³ | 52 512 | 51 070 | 38 658 | 54 316 | 49 319 | 50 058 | 41 875 | 48 254 |
| Turnover pr visitor ³ | 483 | 278 | 402 | 526 | 377 | 425 | 599 | 450 |
| Gross rental income 2021 (MNOK) | 52.0 | 33.4 | 36.5 | 84.8 | 109.3 | 316.0 | 64.5 ⁴ | 380.5 |
| GAV (MNOK) ² | 5 223 | 1 175 | 6 398 |
¹ Gross turnover tenants and footfall at Amanda includes Coop OBS! which is not owned by Aurora. Gross turnover tenants at Vinterbro includes adjacent big-box retailers not owned by Aurora
² GAV including development potential at Alti Nordbyen and Buskerud
³ Key figures corrected to include Coop OBS! at Amanda and exclude big-box retailers at Vinterbro
⁴ Run-rate per 01.01.22
14 015 / 58 RETAIL AREA (SQM) / STORES (#)
Haugesund's leading shopping center, located in a strong retail cluster at Raglamyr.
Easily accessible center with direct access to the rail road and public transportation terminal.
Complete shopping destination, complemented by several big-box retailers like Elkjøp, Biltema and Skeidar.
Gross tenant turnover of MNOK 1 062 ¹ in 2021, equivalent to NOK 52 000 pr sqm of retail.
Ample parking coverage, with 1 600 spots available to customers free of charge.
RETAIL AREA (SQM) / STORES (#)
Shopping center with excellent location by the main high street in the city center of Tromsø.
Great access to tourist flow with immediate vicinity to the cruise ship terminal and Clarion Hotel The Edge.
Anchored by well-known retailers and central Tromsø's only Vinmonopolet.
Gross tenant turnover of MNOK 445 in 2021, equivalent to NOK 51 000 per sqm of retail.
Ample parking coverage in basement, with 220 paid spots available to customers.
14 558 / 45 RETAIL AREA (SQM) / STORES (#)
Strongly positioned shopping center in Larvik with no immediate competitors.
Highly popular region for vacation, attracting +70 000 visitors every summer, which increases the customer base.
The center is anchored by a large grocery store (Meny), and has good parking coverage with 620 spots.
Gross tenant turnover of MNOK 563 in 2021, equivalent to NOK 38 000 per sqm of retail.
Significant developement potential related to Hovlandbanen with plans to transform the area alongside the shopping center.
30 028 / 68 RETAIL AREA (SQM) / STORES (#)
Situated at the junction between highway E6 and E18, approximately 25 minutes by car from Oslo city center.
Car-based shopping center with more than 240 000 people within 20-minutes' drive and 60 000 vehicles passing every day.
Catchment area with strong expected population growth and gross income well above the national average.
Gross tenant turnover of MNOK 1 776 in 2021, equivalent to NOK 54 000 per sqm of retail.
Anchored by well-known retailers like Coop, Elkjøp, Clas Ohlson and Vinmonopolet.
27 533 / 84 RETAIL AREA (SQM) / STORES (#)
One of south-eastern Norway's premiere shopping centers with prime city center location.
Easily accessible center with strong local presence and no immediate competitors.
Good overall layout for shopping and anchored by renowned retailers such as Meny, Clas Ohlson and Vinmonopolet.
Gross tenant turnover of MNOK 1 358 in 2021, equivalent to NOK 49 000 per sqm of retail.
Significant developement potential, including plans to replace an underutilized part of the center with a new entrance and extension ¹.
RETAIL AREA (SQM) / STORES (#)
Leading shopping center in Jæren with an attractive grocery and big-box anchored tenant mix.
Ideally located in the junction of the main regional roads Fv 44 and Fv 510 offering tremendous accessibility by car.
Eco-lighthouse certified and energy efficient asset with solar roof-top panels and eletric vehicle chargers.
Ample parking coverage with 1 200 spaces availible to customers free of charge (700 outdoor and 500 indoor).
Completely renovated in 2018, with large expansion of retail space.
Risk factors Summary About Aurora The portfolio Buskerud Storsenter Current market situation Q4 – 2021 Aurora Eiendom AS
RUN-RATE PER 01.01.22
Regional shopping center located in Krokstadelva (Drammen municipality), adjacent to Mjøndalen.
More than 80 000 people within 15 minutes' drive, and a growing population within the catchment area.
Located in a well-established retail cluster, directly adjacent to several well-known big-box retailers like XXL, Rusta and Byggmax.
Buskerud Storsenter comprises of 59 stores and 28 585 sqm of retail space over two floors:
The property comprises a large freehold lot with significant development potential. Plans to reform area to both residential and commercial area.
Completely renovated in 2017, including new facade and expanded area.
REGIONAL SHOPPING CENTER WITH A GROWING CATCHMENT AREA POPULATION
| Key facts | |
|---|---|
| SPV | Citycon Buskerud Eiendom AS |
| Address | Sandsgata 20, 3055 Krokstadelva |
| Land lot (sqm) / Tenure | 87 674 / freehold |
| Gross lettable area (sqm) | 32 047 |
| Retail area (sqm) | 28 585 |
| Office area (sqm) | 1 123 |
| Storage area (sqm) | 2 339 |
| Parking spaces | 1 200 |
| Stores (#) | 59 |
| Annual visitors 2021 (m) | 2,0 |
| Gross turnover 2021 (MNOK) | 1 197 |
| Per retail sqm (NOK) | 41 875 |
| Per visitor (NOK) | 599 |
| Per store (MNOK) | 20 |
| WAULT (years) | 2.6 |
| Run-rate rental income 01.01.22 (MNOK): | 64.5 |
| Gross asset value (MNOK) | 1 175 |
| Net asset value (MNOK) | 1 085 |
Risk factors Summary About Aurora The portfolio Buskerud Storsenter Current market situation Q4 – 2021 Aurora Eiendom AS
Consumption of goods are up 13% vs. the pre-pandemic level.
Average earnings growth throughout the Pandemic have been above the 3.25% growth path.
• Norwegian shopping centers have demonstrated an ability to adapt to changing consumer needs by changing their tenant mix based on the type of tenants with strong turnover growth.
• Recent shopping center developments show that centers are making changes to their tenant composition, by including a wider selection of offerings such as health related services, public
=
Average profit margin for Norwegian e-commerce companies
• High-quality, one-on-one customer services.
An initiative in the future of retail and shopping centers
Shopping center retail prime yield has been moving sideways since 2017; Logistics prime yield now at the same level
Source: Entra Konsensusrapport, Akershus Eiendom, Company reports, Factset, Pangea Research
* P/NAV for segments based on reported NAVs, as of Q3 2021, for real estate companies listed on the Nordic main lists, in addition to Aurora Eiendom , weighted on market cap, as of 31.01.2022. "Total" also includes other segments, such as 38 CURRENT MARKET SITUATION residential, hotel and public sector. AURORA EIENDOM
Risk factors Summary About Aurora The portfolio Buskerud Storsenter Current market situation Q4 – 2021 Aurora Eiendom AS
AURORA EIENDOM Q4 2021 REPORT AURORA EIENDOM Q4 2021 REPORT
Aurora Eiendom delivered solid financial performance this quarter, fuelled by positive developments in the shopping centers.
Rental income was MNOK 79.4 (MNOK 78.6 in Q3) and net income from property management was MNOK 68.0 (MNOK 61.0 in Q3).
Nordbyen shopping center in Larvik was rebranded to Alti Nordbyen in November 2021.
Aurora Eiendom AS was listed on the Euronext Oslo Exchange on December 15th 2021 with the ticker «AURA».
In Q4 Aurora Eiendom invested in a 25 % stake in JHG Invest AS, which in turn owns 35% of Jærhagen Eiendomsinvest AS. Jærhagen Eiendomsinvest acquired Jærhagen shopping center outside Stavanger in December 2021. Jærhagen is a combined boutique and bigbox shopping center with around NOK 1.5 bn in gross tenant revenue. Alti Forvaltning will continue its management of the center.
The shopping center sales continued at good levels across the country in the fourth quarter. We are pleased that the shopping center portfolio matched a strong last year in the most important quarter of the year for the retail industry and delivered 4 % growth compared to the fourth quarter in 2019, a quarter which represents the latest comparable ordinary market conditions before the Covid-19 pandemic.
After spending the first few months following the takeover in July getting familiar with the newly acquired properties, the focus has now shifted to further developing these strong shopping destinations. New opportunities emerge as we get to know the properties in detail.
During the fourth quarter 10 leases of a total of 5 499 sqm. were extended, which corresponds to 5 % of the property portfolio. Simultaneously new leases with a total of 599 sqm. started, and leases with a total of 403 sqm. expired. This corresponds to a reduction in vacancy of 0.2 percentage points. The leasing work so far has resulted in an increase in rental income from the third quarter to the fourth quarter.
Several of the leases signed in the third quarter have now resulted in opened stores, where the largest new opening this quarter was the interior and furniture concept Feel at Nordbyen in November. One of our exciting news this spring is a signed deal for the opening of H&M Home at Amanda in Haugesund.
LARS OVE LØSETH CEO Aurora Eiendom AS
The fourth quarter is also the period for the budget process for the upcoming year, and a lot of hours have been devoted to optimizing the cost side. This is something that must be refined over time, but we are pleased to slightly reduce the tenant common costs for 2022 on average for the property portfolio, despite the increase in electricity prices.
Nordbyen was the first center in the Aurora portfolio to implement Alti Forvaltning's shopping center brand, Alti. The rebranding took place on the fourth of November, and is a part of the process to streamline, professionalize and modernize the shopping centers. Nordbyen is the 21st center to use the Alti brand.
Jærhagen Kjøpesenter was introduced to the market after the summer, a property we know well through Alti Forvaltning managing it for two years. After an invitation to co-invest with other savvy local and national investors, we decided to take an indirect ownership interest of 9 % through JHG Invest AS. The shopping center, which has been modernized and greatly expanded in recent years, consists of approximately 47 000 sqm. gross lettable area and had a gross tenant turnover of NOK 1.5 bn in 2021.
Alti Forvaltning will continue to manage Jærhagen Kjøpesenter. From March 2022 Alti Forvaltning will also manage Magasinet, Drammen.
Our belief that the timing for initiating a new company in retail property was excellent is strengthened by the fact that we already are noticing the interest in the shopping center segment increasing, and there is greater competition for attractive assets in the transaction market.
On December 15th 2021 Aurora Eiendom AS was listed on Euronext Growth Oslo with the ticker AURA. In sum, we are on track with both the growth ambitions and the stock exchange listing communicated to investors last year.
We are continuing our work to seek out new investment opportunities to further expand our portfolio of leading shopping destinations.
| Aurora Eiendom AS | Q4 2021 | YTD-21 | |
|---|---|---|---|
| Net Rental Income | NOK | 79 418 811 | 158 043 738 |
| Net income from property management | NOK | 68 002 971 | 129 008 000 |
| Interest coverage ratio* | 3.1 | 3.2 | |
| 31.12.2021 | |||
| Market value of property portfolio | NOK | 5 222 900 000 | |
| Net interest bearing debt | NOK | 2 377 271 564 | |
| Loan to value (LTV)* | % | 45.5 % | |
| Outstanding shares | 20 550 400 | ||
| Equity per share | NOK | 130.5 | |
| * See Alternative Perfomance Measures for details |
| Properties | # | 5 |
|---|---|---|
| GLA | sqm | 113 113 |
| Occupancy | % | 93.9 |
| WAULT | year | 3 |
| 12 month rolling rent * | MNOK | 301 |
| 12 month rolling rent * | NOK / sqm | 2 834 |
The lease portfolio summary only refers to rent from leases tied to gross lettable area (GLA). For example, income from parking and specialty leasing is not includeded.
| Leasing activity | Q3 2021 | Q4 2021 | YTD-21 | |
|---|---|---|---|---|
| Total area of leases started | sqm | 1 086 | 599 | 1 086 |
| Total area of leases ended | sqm | 742 | 403 | 1 145 |
| Net area leased | sqm | 344 | 196 | 540 |
| Net area leased | % | 0.3 % | 0.2 % | 0.5 % |
| Average lease term for new leases | year | 5.8 | 4.8 | 5.3 |
| Total area of leases extended | sqm | 5 662 | 5 449 | 11 111 |
| Total area of leases extended | % | 5.0 % | 4.8 % | 9.8 % |
| Average extension for extended leases | year | 4.5 | 3.0 | 3.6 |
| Shopping center | Location | Gross turnover tenants (NOK millions) | |||
|---|---|---|---|---|---|
| Q4 2021 | Q4 2021 / Q4 2020 Q4 2021 / Q4 2019 | ||||
| Farmandstredet | Tønsberg | 454 | 10 % | 6 % | |
| Amanda Storsenter * | Haugesund | 345 | -1 % | -9 % | |
| Vinterbro Senter | Ås | 542 | -10 % | 12 % | |
| Alti Nordbyen | Larvik | 173 | 6 % | 3 % | |
| Nerstranda | Tromsø | 140 | 6 % | 6 % | |
| Portfolio | 1 654 | 0 % | 4 % |
*Turnover includes Coop OBS!, not owned by Aurora
Gross rental income in the quarter was NOK 79.4 million.
Property related operational expenses consist of maintenance, property tax, leasehold insurance and other direct property cost. These amounted to NOK 2.6 million for Q4.
Administrative expenses were NOK 3.6 million. This represents the fee paid to Alti Forvaltning AS for managing the five shopping centers in the Aurora portfolio. Alti Forvaltning AS also provides management services to the parent company Aurora Eiendom AS, and the cost of this is included in the management fee.
Other operating income and expenses consists of income and expenses not related to the properties, such as provision and consultancy and auditing fees.
Net income from property management amounted to NOK 68.0 million.
The fair value of the investment properties was adjusted by NOK 15.5million in the quarter. The Group´s portfolio consists of five shopping centers.
Aurora Eiendom AS has two associated companies. The management company Alti Forvaltning AS and the newly founded JHG Invest AS. The Group's share of profit in these companies amounted to NOK -547 958 in Q4
Financial income is mainly interests on cash and cash equivalents.
Fair value adjustments on interest rate derivatives Aurora Eiendom AS signed nine contracts during the fourth quarter. Market value and position of these contracts amounted to NOK -8.7 million by the end of the quarter.
Financial expenses in the quarter amounted to NOK 22.1 million and are mainly related to interest and fees on interestbearing debt.
Profit before income tax was NOK 45.5 million. Pre-tax profit, including fair value adjustments of investment properties and interest rate derivatives, was NOK 52.3 million.
The Group´s assets amounted to NOK 5 623 million. Of this, investment properties amounted to NOK 5 223 million (93 %).
Interest bearing debt was NOK 2 654 million (amortized) at the end of the quarter (NOK 2 666 million in nominal amount).
The equity totaled NOK 2 681 million (48 %).
The Group´s debt portfolio consists of long-term debt with Norwegian banks. The remaining term for the debt portfolio is 2.5 years.
The Group´s investment properties are pledged as security for the bank loans.
The Group's bank loans incorporate financial covenants related to minimum liquidity, loan-to-value and interest coverage ratio. Aurora Eiendom was in compliance with conditions in the credit agreements as of 31.12.2021.
Net cash flow from operating activities was NOK 28.1 million. Net cash flow from investments was NOK -30.8 million and net cash flow from financing activities was NOK -0.4 million.
The net change in cash and cash equivalents was NOK -3.1 million, and cash and cash equivalents at the end of the period were NOK 288.7 million.
| Note | Q4-21 | YTD Q4-21 | |
|---|---|---|---|
| Aurora Eiendom | |||
| Rental income | 79 418 811 | 158 043 738 | |
| Property related operational expenses | 4 | -2 570 393 | -15 161 419 |
| Net rental income | 76 848 418 | 142 882 319 | |
| Other income | 66 147 | 275 602 | |
| Other operating expenses | 4 | -5 327 936 | -6 635 017 |
| Administrative expenses | 4 | -3 583 658 | -7 514 904 |
| Net income from property management | 68 002 971 | 129 008 000 | |
| Fair value adjustment, investment property | 2 | 15 500 000 | 754 614 898 |
| Share of profit from JV and associates | -547 958 | -166 251 | |
| Operating profit | 82 955 013 | 883 456 647 | |
| Financial income | 154 007 | 160 768 | |
| Fair value adjustments, interest rate derivatives | 3 | -8 710 592 | -8 710 592 |
| Financial expenses | 3 | -22 092 800 | -40 164 446 |
| Net financial items | -30 649 385 | -48 714 270 | |
| Profit before income tax | 52 305 628 | 834 742 377 | |
| Change in deferred tax | -4 881 542 | -170 008 304 | |
| Income tax payable | -5 932 514 | -11 938 996 | |
| Income tax | -10 814 056 | -181 947 300 | |
| Profit | 41 491 572 | 652 795 077 | |
| Note | Q4-21 | YTD Q4-21 | |
|---|---|---|---|
| Other Comprehensive income | |||
| Items to be reclassified to P&L in subsequent periods: | |||
| Currency translation differences from foreign operations | - | - | |
| Hedging of net investment in foreign operations | - | - | |
| Income taxes on other comprehensive income | - | - | |
| Total comprehensive income for the period/year | 41 491 572 | 652 795 077 | |
| Profit attributable to: | Q4-21 | YTD Q4-21 | |
| Shareholders of the parent | 41 491 572 | 652 795 077 | |
| Total comprehensive income attributable to: | |||
| Equity holders of the Company | 41 491 572 | 652 795 077 | |
| Basic and diluted earnings per share | 2.02 | 59.18 |
| Note | 31.12.2021 | |
|---|---|---|
| Non-current assets | ||
| Investment properties | 2 | 5 222 900 000 |
| Investment in joint ventures and associated companies | 89 724 061 | |
| Receivables | 1 256 126 | |
| Derivative financial instruments | 3 | 4 428 480 |
| Total non-current assets | 5 318 308 667 | |
| Note | 31.12.2021 | |
| Current assets | ||
| Trade receivables | 3 | 2 340 358 |
| Other current asset | 13 198 657 | |
| Cash and cash equivalents | 3 | 288 715 066 |
| Total current assets | 304 254 081 | |
| TOTAL ASSETS | 5 622 562 748 |
| Note | 31.12.2021 | |
|---|---|---|
| Equity | ||
| Share capital | 1 541 280 000 | |
| Share premium | 486 744 430 | |
| Retained earning | 652 795 077 | |
| Total equity | 2 680 819 507 | |
| Long-term liabilities | ||
| Loans | 3 | 2 524 568 870 |
| Derivative financial instruments | 3 | 13 139 072 |
| Lease liabilities | 11 859 429 | |
| Deferred tax liabilities | 170 008 304 | |
| Total long-term liabilities | 2 719 575 675 | |
| Short-term liabilities | ||
| Loans | 3 | 129 830 681 |
| Income tax payable | 23 081 671 | |
| Trade payables | 3 | 15 532 464 |
| Current lease liabilities | 1 483 407 | |
| Other current liabilities | 3 | 52 239 343 |
| Total short-term liabilities | 222 167 566 | |
| Total liabilities | 2 941 743 241 | |
| Total liabilities and shareholders' equity | 5 622 562 748 |
| Note | Share capital | Share premium Retained earnings | Total equity | ||
|---|---|---|---|---|---|
| Equity at 31.12.2020 | - | - | - | - | |
| Share issue | 1 541 280 000 | 486 744 430 | |||
| Profit for period | - | - | 652 795 077 | 652 795 077 | |
| Other comprehensive income | - | - | - | - | |
| Dividend | - | - | - | - | |
| Total equity 31.12.2021 | 1 541 280 000 | 486 744 430 | 652 795 077 | 2 680 819 507 |
| Note | Q4-21 | YTD 21 | |
|---|---|---|---|
| Profit before tax | 52 305 628 | 834 742 376 | |
| Net expensed interest and fees on loans and leases | 3 | 22 092 800 | 39 436 819 |
| Net interest and fees paid on loans and leases | 3 | -16 148 256 | 31 794 110 |
| Share of profit from associates and jointly controlled entities | 547 958 | 166 251 | |
| Changes in value of investment properties | 2 | -15 500 000 | -754 614 898 |
| Changes in value of financial instruments | 3 | 8 710 592 | 8 710 592 |
| Change in working capital | -23 917 739 | -258 622 | |
| Net cash flow from operating activities | 28 090 984 | 96 388 409 | |
| Net cash flow from operating activities | - | - | |
| Acquisitions of investment properties | 4 356 927 | -4 405 106 502 | |
| Investment in and upgrades of investment properties | -355 391 | -5 887 158 | |
| Investments in associates and JVs | -34 775 000 | -89 890 313 | |
| Net cash flow from investment acitivities | -30 773 464 | -4 500 883 973 | |
| Proceeds interest bearing debt | - | 2 665 986 630 | |
| Repayment of lease liabilities | -434 036 | -800 430 | |
| Proceeds from issue of shares/repurchase of shares | - | 2 028 024 430 | |
| Net cash flow from financing activities | -434 036 | 4 693 210 630 | |
| Change in cash and cash equivalents | -3 116 516 | 288 715 066 | |
| Cash and cash equivalents at beginning of period | 291 831 582 | ||
| Cash and cash equivalents at beginning of period | 288 715 066 | 288 715 066 |
3
4
The financial results for Q4- 2021 have been prepared in accordance with IAS 34 Interim Financial Reporting. The accounting principles that have been used are described in Q3-2021 report. The interim financial results for Q4 - 2021 have not been audited.
EVENTS AFTER THE BALANCE SHEET DATE 5 5
Investment property consist of property (land, building or both) held to earn rental income and to increase value of capital. Investment property is recognised at fair value. The fair value model is also applied to the right-of-use-assets (building plots covered by long term leasehold contracts). Investment property consist of property (land, building or both) held to earn rental income and to increase value of capital. Investment property is recognised at fair value. The fair value model is also applied to the right-of-use-assets (building plots covered by long term leasehold
The Investment property is valued at its fair value based on a valuation carried out by the independent appraisers Cushman & Wakefield AS. The value is calculated using the discounted cash flow method. The Investment property is valued at its fair value based on a valuation carried out by the
The fair value represents the amount at which the assets could be exchanged between a knowledgeable, willing buyer and seller in an arm's length transaction at the date of valuation cash flow method. The fair value represents the amount at which the assets could be exchanged between a
The following main inputs have been used: knowledgeable, willing buyer and seller in an arm's length transaction at the date of valuation
| Opening balance as of 01 October 2021 | Q4 - 2021 |
|---|---|
| Opening balance as of 01 October 2021 Additions from acquisitions |
5 207 400 000 |
| Additions from acquisitions Net gain/loss on changes in fair value |
- |
| Net gain/loss on changes in fair value | 15 500 000 |
| As at 31 December As at 31 December |
5 222 900 000 |
Changes in fair value is recognised in the period to which the profit/loss relates. The latest independent valuation was carried out on 31 December 2021 Investment properties are not depreciated.
There are no restrictions on when the investment properties can be realised. Revenue from sales must in part be used to repay bank loans.
There are no significant contractual obligations to buy, build or develop investment properties.
| Q4-2021 Amortised cost |
Q4-2021 Fair value |
|
|---|---|---|
| Assets | ||
| Financial derivatives | 4 428 480 | |
| Accounts receivable | 2 340 358 | |
| Cash and cash equivalents | 288 715 066 | |
| Total Financial assets | 291 055 424 | 4 428 480 |
The following of the Group's financial instruments are not measured at fair value: cash and cash equivalents, accounts receivables, other current receivables and payables.
Bank loans have been recognised at amortised cost. Per 31.12.2021 the Group did not have financial instruments other than those mentioned above.
The carrying amount of cash and cash equivalents is approximately equal to fair value since these instruments have a short term to maturity. Similarly, the carrying amount of account receivables and other current receivables and payables is approximately equal to fair value since they are short term and entered into on "normal" terms and conditions.
For Fair Value of Investment Properties see note 2 "Investment properties"
| Valuation inputs | 30.12.2021 |
|---|---|
| Valuation method | DCF |
| Valuation level | 3 |
| Fair Value NOK | 5 222 900 000 |
| Weighted average yield (%) | 5.53 % |
| Yield range | 5.30 % - 6.23 % |
| Long term operating expense growth (%) | 2.00 % |
| Long term growth rate in real rental terms (%) | 2.00 % |
| Number of properties | 5 |
| GLA sqm | 113 113 |
| Liabilities | ||
|---|---|---|
| Interest bearing loans and borrowings | ||
| Bank Loan 1 | 2 388 747 345 | |
| Bank Loan 2 | 265 652 206 | |
| Trade payables | 15 532 464 | |
| Financial derivatives | 13 139 072 | |
| Total financial liabilities | 2 669 932 015 | 13 139 072 |
| Operating costs | Q4-2021 | YTD |
|---|---|---|
| Maintenance | 691 663 | 4 513 453 |
| Leasehold and property insurance | 1 001 356 | 2 060 509 |
| Other expenses / direct property costs | 877 374 | 8 587 457 |
| SUM | 2 570 393 | 15 161 419 |
Expenses directly related to the operation of existing properties are presented as real estate related costs.
| Administrative expenses | Q4-2021 | YTD |
|---|---|---|
| Administrative expenses | 3 583 658 | 7 514 904 |
| Other operating expenses | Q4-2021 | YTD |
|---|---|---|
| Advertising | 158 375 | 630 250 |
| Consultancy fees and external personnel | 2 170 698 | 2 364 740 |
| Other operating costs | 2 998 863 | 3 640 027 |
| Total operating expenses | 5 327 936 | 6 635 017 |
| Specification auditor's fee | Q4-2021 | YTD |
| Statutory audit | 519 598 | 519 598 |
| Other assurance services | 111 352 | 658 024 |
| Total | 630 950 | 1 177 622 |
Admininistrative expenses represent the management fee paid to Alti Forvaltning AS for mangagement of the shopping center portfolio. Alti Forvaltning AS also provides management services for the parent company Aurora Eiendom AS, the cost of which is included in the management fee.
Some of the auditor's fees have been included in the initial recognised cost of the investment properties, as the fees are related to the acquisition of these properties.
Aurora Eiendom finalized negotiations regarding the purchase of Buskerud Storsenter.
From March 2022 Alti Forvaltning AS will take over the management of Magasinet Drammen.
We declare to the best of our belief that the Q4 - 2021 financial statements for the period 01 October to 31 December 2021 have been prepared in accordance with IAS 34 – Interim reporting, and that the information in the financial statements gives a true and fair view of the Aurora Eiendom´s assets, liabilities, financial situation and result as a whole.
PETTER A. STORDALEN Chairman of the Board
MARIUS VARNER Board member
SURNADAL, 07.02.2022
LARS LØSETH Board member
JOHAN JOHANNSON Board member
LARS OVE LØSETH CEO
| Loan to Value (LTV) | 30.09.2021 | 31.12.2021 |
|---|---|---|
| Fair value of investment properties | 5 207 400 000 | 5 222 900 000 |
| Nominal interest- bearing debt | 2 665 986 630 | 2 665 986 630 |
| Cash and bank deposits | 291 831 582 | 288 715 066 |
| Net interest-bearing debt | 2 374 155 048 | 2 377 271 564 |
| Loan to value | 45.6 % | 45.5 % |
| Q3 - 2021 | Q4 - 2021 | YTD - 2021 | |
|---|---|---|---|
| Net income from property management Financial expenses |
61 005 029 18 071 646 |
68 002 971 22 092 800 |
129 008 000 40 164 446 |
| Interest coverage ratio | 3.4 | 3.1 | 3.2 |
Aurora Eiendom AS´ financial reporting is prepared in accordance with IFRS. As a supplement to the financial statements, the company reports alternative performance measures. These are intended to be a supplement to the financial statements, to enhance the understanding of the company´s performance.
EPRA metrics are presented in accordance with the best practices defined by the European Public Real Estate Association BPR 2019.
| Q4-2021 |
|---|
| 1.76 |
| 139 |
| 135 |
| 130 |
| All amounts in NOK million | IFRS reported Q3-2021 |
EPRA adjustments Q3-2021 |
EPRA Earnings Q3-2021 |
IFRS reported Q4-2021 |
EPRA adjustments Q4-2021 |
EPRA Earnings Q4-2021 |
|---|---|---|---|---|---|---|
| Rental income | 79 | - | 79 | 79 | 79 | |
| Operating costs | -13 | - | -13 | -3 | 3 | |
| Net operating income | 66 | - | 66 | 77 | - | 77 |
| Other revenue | 0 | - | 0 | 0 | 0 | |
| Other costs | -1 | - | -1 | -5 | -5 | |
| Administrative costs | -4 | - | -4 | -4 | -4 | |
| Share of profit from associates and JVs | 0 | - | 0 | -1 | -1 | |
| Net realised financials | -18 | - | -18 | -22 | -22 | |
| Net income | 43 | - | 43 | 46 | - | 46 |
| Changes in value of investment properties | 739 | -739 | - | 16 | -16 | - |
| Changes in value of financial instruments | - | -9 | 9 | - | ||
| Profit before tax/EPRA Earnings before tax | 782 | -739 | 43 | 52 | -7 | 46 |
| Tax payable | -6 | - | -6 | -6 | -6 | |
| Change in deferred tax | -165 | 163 | -3 | -5 | 1 | -3 |
| Profit for period/EPRA Earnings | 611 | -577 | 35 | 41 | -5 | 36 |
| Average outstanding shares (million) | 20.0 | 20.6 | ||||
| EPRA Earnings per share (NOK) | 1.74 | 1.76 |
EPRA Earnings is a measure of operational performance and represents the net income generated from the company´s operational activities.
| Q3 - 2021 | Q4 - 2021 | |||||
|---|---|---|---|---|---|---|
| NRV | NTA | NDV | NRV | NTA | NDV | |
| IFRS Equity | 2 639 | 2 639 | 2 639 | 2 681 | 2 681 | 2 681 |
| Net Asset Value (NAV) at fair value | 2 639 | 2 639 | 2 639 | 2 681 | 2 681 | 2 681 |
| Deferred tax properties and financial instr | 165 | 165 | 170 | 170 | ||
| Estimated real tax liability | 83 | 85 | ||||
| Net fair value on financial derivatives | - | - | 9 | 9 | ||
| EPRA NAV | 2 804 | 2 722 | 2 639 | 2 860 | 2 775 | 2 681 |
| Outstanding shares at period end (million) | 20.6 | 20.6 | 20.6 | 20.6 | 20.6 | 20.6 |
| EPRA NAV per share (NOK) | 136 | 132 | 128 | 139 | 135 | 130 |
EPRA Net Reinstatement Value (NRV): the objective of this metric is to highlight the value of net assets on a long term-basis, assuming that no selling of assets takes place.
EPRA Net Tangible Assets (NTA): the calculation assumes entities buy and sell assets, thereby crystallising certain levels of deferred tax liability. Aurora Eiendom has chosen option (iii) in the EPRA BPR Guidelines. In this calculation 50% of the deferred taxes are added back.
EPRA Net Disposal Value (NDV) provides the reader with a scenario where deferred tax, financial instruments and certain other adjustments are calculated to the full extent of their liability, net of any resulting tax, this to illuatrate shareholder value in a scenario of orderly sale of all the company´s assets.
Friday 25.03.2022 Annual Report 2021
Wednesday 11.05.2022 Quarterly Report – Q1 2022 Tuesday 16.08.2022 Quarterly Report – Q2 2022 Wednesday 16.11.2022 Quarterly Report – Q3 2022
CEO Aurora Eiendom AS
[email protected] +47 928 17 859
CFO Aurora Eiendom AS
[email protected] +47 464 48 411
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