Mofast (MOFAST) Stockholm Corporate Finance Conference 2025 summary

Company and Portfolio Overview

• Operates 67 properties valued at SEK 2.8 billion, mainly in Stockholm/Mälardalen, with a lettable area of 134,967 sqm and a balance sheet just under 3 billion SEK.

• Portfolio includes both residential and community properties, with 82% of assets in attractive Swedish growth regions.

• Commercial tenants are primarily municipalities and major care operators, with top five tenants accounting for a significant portion of rental income and no single contract exceeding 1.5% of revenue.

• Weighted average lease term has increased from four to six years, ensuring predictable cash flows and supporting long-term stability.

• Economic occupancy rates remain high for both residential and community properties, with low vacancy risk.

Strategy and Investment Focus

• Strategic shift from growth to profitability, prioritizing returns for shareholders and aiming to distribute 30-50% of management results.

• Investments are concentrated in care properties targeting a 15% return, while residential renovations are paused due to lower returns and higher vacancy risk.

• Residential investments focus on converting apartments to condominiums for premium sales.

• Ongoing investments in property upgrades and energy efficiency enhance value and tenant satisfaction.

• Recent property sales, mainly to municipalities and through conversions, have generated significant cash and improved financial metrics.

Financial Performance and Capital Structure

• Trades at a substantial discount (around 58%) to net asset value, reflecting its small size and limited market visibility.

• Maintains a loan-to-value ratio below 50% and targets a 2.0 interest coverage ratio within 1-2 quarters, with forecasts indicating a steady interest coverage ratio and a target loan-to-value ratio below 60%.

• Average interest cost is 3.8% with 51% interest rate hedging as of June 2025; capital structure is balanced with 50% equity and 50% interest-bearing debt.

• Plans to distribute a 3.5-4% dividend yield, among the highest in the sector, with potential for share buybacks under consideration.

• Ongoing conversion of residentials to condominiums is expected to further lower leverage and boost cash reserves.