Logistri (LOGIST) DNB Carnegie Småbolagsdag summary

Strategic focus and portfolio growth

• Invests in mission-critical properties for logistics and light industry, with tenants requiring daily use for operations.

• Portfolio concentrated in Stockholm, Gothenburg, Malmö, and southern/central Sweden, valued at SEK 2.7 billion at Q3, with a target of SEK 4.3 billion by 2027 and SEK 5 billion by 2028.

• Growth achieved through disciplined acquisitions, including recent and upcoming property takeovers and a major logistics center project with Hitachi Energy in Ludvika.

• Long-term tenant relationships and contracts, with an average lease duration of seven years and ongoing diversification of the tenant base.

• Focus on high and stable cash flow, maintaining a high surplus ratio and nearly full occupancy.

Financial strategy and risk management

• All growth to SEK 5 billion is fully financed through internal means, recent refinancing, a directed share issue of SEK 350 million, and new credit lines.

• Targets 15% annual growth in management result per share and 15% return on equity, with a net loan-to-value ratio under 58% and interest coverage above 2x.

• Transitioned from foreign to Swedish bank financing, now supported by five Swedish banks and a listed bond.

• Uses interest rate swaps to match loan duration, ensuring stability against rate fluctuations.

• Maintains a flexible approach to portfolio composition, willing to adjust holdings for optimal returns.

Key projects and market positioning

• Ludvika logistics center for Hitachi Energy is a transformative project, expected to contribute SEK 50 million to management result annually from Q2 2027.

• Hitachi will represent 30% of rental income post-project, with a 15-year lease and low perceived credit risk due to Hitachi's long-term presence and stability.

• Employs triple net and net lease agreements, minimizing cost risk and maximizing surplus ratio, with a focus on sell and lease-back deals.

• Operates in a high-yield segment compared to residential or other property types, leveraging strong tenant analysis for risk-adjusted returns.

• Largest shareholders include Solid Capital and Cidro Förvaltning, with a stable ownership structure supporting growth initiatives.