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:
https://channel.royalcast.com/landingpage/hegnarmedia/20231026_4/
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.