Investor Presentation • May 26, 2016
Investor Presentation
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1. Total Comprehensive Income of USD -2.6m in Q1
3. Sold TK Development in Q2
4. NAV per share at NOK 8.74
1. The Board decided to narrow down the strategy to bring out underlying values.
2. Multi-asset class strategy and wide geographical spread seen as a hindrance for some strategic alternatives (mergers, acquisitions, takeovers etc).
3. To enable potential strategic alternatives, the company has reverted to a single-strategy Russia platform.
1. In line with new strategy, the Board resolved to sell Storm's stake in TK Development A/S
2. The proceeds from the sale will be used to increase the company's working capital and the Board has also proposed distribution of dividends to shareholders
3. The sale enabled a distribution of dividends to shareholders at a dividend yield of 46% (1)
4. After the sale, the business consists of direct ownership of investment property in Russia.
| mill. USD | Q1 2016 | Q1 2015 | 12M 2015 |
|---|---|---|---|
| Total Comprehensive Income | -2.6 | -2.3 | -16.8 |
| Summary of major items: |
|||
| NOI from investment properties | +1.2 | +2.3 | 8.7 |
| Value change investment properties |
-0.3 | -5.6 | -19.0 |
| Value change shares in real estate companies |
-1.5 | +3.2 | -0.1 |
| Other operating costs | -0.6 | -0.6 | -1.8 |
| Funds and liquid investments | 0.0 | -0.2 | -0.2 |
| Borrowing costs | -0.6 | -0.8 | -3.2 |
| Currency gains/ losses | +0.4 | -2.1 | -1.1 |
| Contract- and interest derivatives |
-0.7 | -0.5 | -0.1 |
| Taxes | -0.1 | +1.5 | 2.3 |
| Recognised loss on disposal of subsidiary |
- | - | -1.8 |
| (US\$ '000) | 31/12/15 31/03/07 |
31/03/16 (1) Pro Forma |
31/12/15 31/03/07 |
31/03/16(1) Pro Forma |
|
|---|---|---|---|---|---|
| Investment property | \$38,950 | \$36,711 | Bank loans | \$24,707 | \$22,479 |
| Investments property shares | \$12,641 | \$11,704 | Deferred tax | \$5,513 | \$5,063 |
| Total non-current assets | \$51,611 | \$48,436 | Other liabilities | \$3,894 | |
| Cash & liquid investments(2) | \$6,353 | \$4,463 | Total liabilities | \$36,351 | \$33,577 |
| Total current assets | \$6,741 | \$4,531 | Equity | \$22,000 | \$19,388 |
| Total assets | \$58,352 | \$52,966 | Total equity and liabilities | \$58,352 | \$52,966 |
| Equity ratio | 38% | 37% |
(1) Unaudited.
(2) Includes cash invested in liquid securities for cash management purposes.
As at 31 March 2016. Numbers in NOK per share.
(1) Grifon sold. Value as per valuation from independent valuer.
(2) Yield for the year is calculated on the 2015 NOI / Asset value at year end of the remaining asset (Gasfield)
Source: Oslo Stock Exchange, Bloomberg
(1) SRE and OSEBX adjusted for dividends. As per 25 May 2016.
Economic activity (as measured by industrial production) trending up
Investment volumes high in Q1 2016
Source: Cushman & Wakefield
(1) Average rental rates is a weighted average rental rate of asking rents of deals closed within the period, RUB / m²/ annum/ triple net
New construction at low levels, negative absorbtion
1. Total Comprehensive Income of USD -2.6m in Q1
3. Sold TK Development in Q2
4. NAV per share at NOK 8.74
APPENDIX
Gross Area c. 6,250 m²
Sold in December 2015. Estimated IRR in the ownership period = 8.3%
(1) As per 25 May 2016. The MICEX Index is denominated in rubles, the RTS Index is denominated in dollar.
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E-mail: [email protected] Tel: +44 (0)207 409 3378 Fax: +44 (0)207 491 3464
Web: www.stormcapital.co.uk
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