Welcome to the third quarter presentations from Self Storage Group. My name is Fabian Søbak. I am founder and CEO of the company, and I will be presenting together with my colleague, Cecilie Hekneby, who is CFO. Cecilie will start going through the results for the quarter. Good morning. I will take you through the SSG's financial development and results for the third quarter. Okay, I'm so sorry, but we have some technical issues here. Okay, we will come back in five minutes. I'm so sorry. Okay. We had some technical issues. I'm so sorry. I will go through the SSG's financial development and results for the third quarter. The third quarter continued the strong and positive operational development for SSG. Demand is strong, and occupancy for mature facilities is trending at target level. We continue to develop new facilities and acquire properties. Our footprint in Scandinavia is growing, and we had, at the end of the quarter, 133 facilities with 30,400 storage rooms. We had a total lettable area of 221,800 sq m, of which 182,600 sq m was in operation and 39,200 sq m under development. We have a strong pipeline and a solid foundation for further profitable growth and expansion. In the third quarter, we had all-time high revenues of NOK 101.9 million, an increase of 10% compared to third quarter 2021, and exceeding NOK 100 million for the first time. The growth in revenues is related to high occupancy across all segments, increased average rent, and organic growth through opening of new facilities and expansions. EBITDA was also all-time high, and increased with 4% to NOK 60.5 million in the third quarter compared to third quarter 2021, and there were no non-recurring items. There has been a yield expansion in the property market during the quarter, driven by rising interest rates. As a consequence, the group's independent appraiser has estimated a change to the fair value of the group's freehold investment portfolio of minus NOK 121 million in the third quarter. This is a non-cash P&L charge, and there are no other negative elements impacting the valuation of the portfolio. Profit before tax was minus NOK 87 million in the third quarter, compared to NOK 38.8 million in the third quarter 2021. Demand is strong, and occupancy is trending at target level. The average occupancy for sites open more than 12 months is, in the third quarter, 90.4% compared to 91.6% in third quarter 2021. The average rent was NOK 2,356 per square meter per year, an increase from NOK 2,321 in the third quarter 2021. Three properties in Norway and one property in Denmark were acquired in the quarter. In addition, organic growth in Sweden was initiated with a signed agreement to acquire a property in Trollhättan. At the end of September, we had 182,600 sq m to offer our customers, an increase of 7,300 sq m since the end of September 2021. 9,000 sq m of the increase is related to the opening of seven new facilities, while 8,300 sq m of the increase is related to expansions on already opened facilities. Of the 182,600 sq m lettable to our customers, 167,700 sq m has been in operation for more than a year and are defined as mature. The chart on the lower left-hand side shows the increase in current lettable area as of September compared to one year earlier. The chart on the lower right-hand side shows the increase in average occupied area for mature facilities compared to the third quarter 2021. Average occupancy for the mature facilities in third quarter was 90.4% and above target level compared to 91.6% in the third quarter 2021. The average rent per square meter per year for the third quarter was NOK 2,356 compared to NOK 2,321 for the third quarter 2021. Discounts has been used to boost occupancy, but with occupancy trading, trending at target level, the use of discounts to new customer is reduced, which in addition to the CPI adjustments implemented during the first quarter 2022 impacts average rent. Like-for-like performance for facilities with comparable lettable area in the third quarter this year and third quarter 2021 has an occupancy of 91.3% and average rent per square meter per year of NOK 2,430. A chart showing the development of occupancy and average rent for mature facilities for the last year is included in the appendix. Average occupancy for mature facilities as group level is 90.4%. As you can see on the chart on the upper left-hand side, occupancy is close to or above target of 90% for all entities. Dit Pulterkammer is reported as part of the city concept but is visualized in this chart. The chart on the right-hand side shows the development in current lettable area according to concept and country. The increased capacity in CSS Norway and OK Minilager consists both of new facilities and expansions, the latter partly impacting the occupancy and average rent. The column to the right, on the chart show the development like-for-like for the facilities. The like-for-like performance increased from 89.8% in the first quarter 2021 to 91.3% in this quarter and is above target. The chart on the lower left-hand side shows average rent in NOK for mature facilities for both concepts and all three countries. CSS Norway achieves high rent levels at around NOK 3,000 per square meter, while Sweden and Denmark have rates between NOK 2,200 and NOK 2,500. OK Minilager has rent levels about NOK 700 per square meter. Low operational cost has made it possible to offer customers the lowest prices in the market and still achieve high margins. The development in average rent in Sweden and Denmark is shown in constant currency. The exchange rate for this quarter has been applied for third quarter last year. Average rent has increased for all but CSS Norway. Current lettable area has been increased with more than 40,000 sq m in CSS Norway the last five years, an increase of 160%. Discounts for new customers have been used to boost occupancy. Some larger facilities need more than 12 months to reach the target of 90% occupancy. Expansions during the year on facilities already open impacts the numbers. Average rent for mature facilities in the group of NOK 2,356 in the quarter, while like-for-like was NOK 2,430 for the third quarter 2022. SSG has delivered strong growth in the first five years the company has been listed, and we mark the anniversary by delivering all-time high revenue and EBITDA in the third quarter 2022. Revenue for the third quarter was NOK 101.9 million, an increase of 10% since third quarter 2021. Total operating costs in third quarter are NOK 6.8 million higher than in the third quarter 2021. Property-related expenses are impacted by growth in lettable area and number of facilities in the portfolio. In addition, costs to electricity and heating have increased following extreme price development in the power market compared to one year earlier. Costs to planned maintenance and upgrading have been at a higher level during the summer compared with 2021. There are also costs related to properties in the pipeline not yet generating income, like property tax and insurance. With increased size of the group and freehold investment portfolio, the group has focused on branding, IT, and organizational development to level up the scalable platform for future growth. A new ERP system integrated with the CRM system is under implementation. We continue to make investments in our digital platforms to increase automation and customer satisfaction. The rollout of a new identity and communication strategy for both brands was initiated in 2021 and is continued in 2022. There are no non-recurring items in the third quarter of 2022, nor in 2021. EBITDA in the third quarter was NOK 60.5 million, an increase of NOK 2.3 million compared to EBITDA in third quarter 2021. The EBITDA margin for the quarter of 59.3% is slightly lower than for Q3 2021. We expect EBITDA margin to continue to remain high since the marginal cost for the new unmanned facilities are low and the business model highly scalable. Our strategy is to grow within freehold property. During the third quarter of 2022, the share of freehold property in operation continued to increase. At the end of September, 56% of the current lettable area in SSG is held freehold. The chart on the upper right-hand side shows the split between City Self-Storage and OK Minilager. 47% of current lettable area in the City Self-Storage segment is freehold, while 71% of current lettable area in OK Minilager is freehold. The share of freehold property is increasing in both segments, and almost all the area under development is freehold. Our freehold portfolio consists of 188,200 sq m gross area freehold property, and 19,500 sq m gross area for containers. Approximately 65%-70% of the gross area is utilized as lettable area for self-storage. SSG has freehold investment property of NOK 2.5 billion as of end September 2022. Freehold investment property has year to date increased by NOK 56.1 million from December 2021. The increase is related to the acquisition of 10 properties in Norway, and one property in Denmark. Investments in several development and conversion projects, and exchange differences, partly offset by the change in fair value year to date of minus NOK 117 million. The chart on the upper right-hand side shows the development in freehold investment properties since the IPO in 2017. External valuations are reviewed on a quarterly basis. In the third quarter 2022, there was a yield expansion in the property market. As a consequence, the group's independent appraiser has estimated a change to the fair value of the group's freehold investment property of minus NOK 121.4 million in the third quarter. This is a non-cash P&L charge, and there are no other negative elements impacting the valuation of the portfolio. The change in fair value of freehold investment property in the third quarter of 2021 was NOK 1.7 million. The chart on the lower left-hand side shows the gross area and yield per region for 2021 and 2020. The total average yield in the group was 4.9% as of December 2021. The yield in Denmark increased during 2021 due to the acquisition of Dit Pulterkammer with properties in the Jutland area. Change in fair value over P&L back to first quarter 2021 is shown on the chart on the lower right-hand side. CLA, Current Lettable Area is an important growth indicator for us. There has been a stable growth in CLA since the IPO in 2017 consisting of both organic growth and growth from acquisitions. During 2021 we added 14,200 sq m of organic growth and 9,400 sq m to acquisition. We have accelerated organic growth and will open in excess of 15,000 sq m lettable area this year. And for 2023, we are aiming to further accelerate development of growth with a projected addition of more than 20,000 sq m lettable area. In first quarter 2023, a leasehold facility at Gärdet in Sweden with a CLA of 3,300 sq m will be discontinued due to a lease expiration which could not be extended. The facility will be vacated during the fourth quarter 2022, and will not be included in CLA and occupancy for the fourth quarter. Total lettable area adjusted for the closing of the facility is 218,500 sq m. We have a solid pipeline. As of September, we had 39,200 sq m under development, of which 28,000 sq m is in the greater Oslo area, as you can see on the map. We have rental income from 12,300 sq m other development pipeline, mainly from expiring contracts with office tenants. We expect to open in excess of 15,000 sq m lettable during this year, and we are aiming to further accelerate the growth in 2023 with a projected addition of 20,000+ sq m lettable area. The pie chart shows the distribution of current lettable area in operation with a larger portion in the greater Oslo area. Self-storage revenue can be calculated by using the three KPIs, current lettable area, occupancy, and average rent per square meter. As of September, we have a current lettable area of 182,600 sq m, with 167,700 sq m in operation more than twelve months, and hence defined as mature. We have 39,200 sq m, which are under development, and we continuously are working to increase lettable area further. We plan to open 15,000 sq m during this year, and 20,000+ sq m next year. We continue to experience high demand for our services, and the occupancy level for the third quarter was 90.4%, which is above the target occupancy level of 90%. The average rent level for the third quarter was NOK 2,356 per square meter per year. Discounts to new customers have been used historically to boost occupancy, but with occupancy trending at target level, we are focused on optimizing rent levels. Reported revenue for the third quarter was NOK 101.9 million, including NOK 8.8 million in other revenue. With our solid pipeline and steady growth in lettable area, there is a significant upside potential from existing assets in the years to come, and with high margins. There will be operating costs related to maintenance and operation for the new facilities, but the business model has proven very scalable. The financial position shows that total assets are NOK 3.6 billion as of September, with an equity ratio of 51%. Freehold investment property is NOK 2.5 million, and includes a pipeline of almost 40,000 sq m not yet opened. Interest-bearing debt amounted to NOK 1 billion as of September 2022. The margin is 170 basis points, and with 82% of the interest fixed by the five-year interest rate swaps we entered into in 2020 and 2021, the financial costs are at favorable terms and predictable. The increased financial expense in the third quarter is related to a currency depreciation of NOK compared to Danish kroner, resulting in minus NOK 6.7 million from unrealized loss in foreign currency. Interest expense on borrowing in the third quarter amounted to NOK 5.7 million, a decrease from third quarter 2021, where interest expense on borrowings was NOK 6.8 million. Loan to value stands at moderate 41% and has good headroom to the covenant of 60%. We have a solid cash position of NOK 185 million and an undrawn revolving credit facility of NOK 145 million, with no other restrictions than the general covenants. The demand for self-storage is growing and has proven to be resilient during previous recessions. The value of SSG's platform in a challenging market remains strong, and we anticipate that the deteriorating property market will continue to create attractive investment opportunities for SSG. We have a solid financial position, a strong organization, and attractive assets, and we are well positioned to leverage our scalable platform for further profitable growth and expansions. Now Fabian will take you through the business development of the quarter. Thank you, Cecilie. There is a significant untapped potential for self-storage in the Scandinavian countries. Square meters per capita is low compared to more mature markets. Awareness about self-storage is still low. The key driver for demand growth is urbanization and increased awareness. New building standards with smaller apartments with less storage space is also driving demand. Self-storage is less developed in Norway compared to Sweden and Denmark. SSG has a market-leading position in the Norwegian market, and this is a position we are focused on developing even further. The market in Norway is fragmented with a lot of small regional and local operators. In Sweden, the market is dominated by multinational operators. SSG is a regional operator in Stockholm. The Danish market is also dominated by multinational operators. SSG has the second largest footprint in Denmark with 11 facilities in Copenhagen and Jutland. The self-storage market is growing in all of the Scandinavian countries, and all three markets are fragmented. We have identified the six most important success factors in self-storage. An important factor for profitability is scale, and in self-storage, it takes a long time to build scale. With scale in the market, we are able to leverage our brand and to be the top of mind operator. Scale also enables us to invest in IT and automation, which is another success factor. To succeed, you also need good locations close to the target market. You also need to provide the best customer service to ensure customer acquisition and retention. In addition to this, any successful self-storage company rely on a share of freehold facilities in the portfolio. With two strong brands in the market, we can both compete on value and price. City Self-Storage is our high-end brand, providing self-storage and related services in the larger Scandinavian cities. Some of the facilities in City Self-Storage are manned. We have 50 City Self-Storage facilities in Scandinavia. In City Self-Storage, we have a strong pipeline in the greater Oslo region and a presence in Stockholm and Copenhagen, as well as regional cities in Scandinavia. OK Minilager is our countrywide discount priced offering. We have 83 facilities across Norway. OK Minilager is the second largest operator in Norway behind City Self-Storage, and all the facilities in the OK Minilager portfolio are unmanned. While we have two separate brands, most of our back office functions are shared between the companies. SSG has a large and diversified customer base. The customer concentration is low, and the customer base is increasingly loyal. 80% of our customers are private customers, and about 20% are business customers. Average rental time per customer is approximately 12 months. The age of our private customers is somewhat evenly distributed, as you can see on the graph, on the right side. The average age is 45 years. Customer satisfaction is an extremely important metric for us. We currently enjoy a trust score of 4.6 stars on Trustpilot for our companies combined. There are a number of reasons why individuals need self-storage. Among the most important demand drivers are relocations, refurbishments, downsizing, lack of space, and student storage. We also see a strong demand in the business segment. Our business model with online booking is highly scalable, and it enables us to enter both small and larger markets. SSG offers a fully digitized customer journey with e-signing and automatic credit check. With our self-service portal, our customers can manage their account on their own, and the customers are able to get in contact with us through their preferred channel with our omni-channel service software. The past year, we have launched new and improved websites for both of our brands. SSG will continue to invest and innovate in digital solutions to increase automation and to stay relevant to the customers. In Q3, SSG has acquired four properties. The first is a property in Gardermoen. This is a new building. The location has a large catchment area, and the location is close to the Oslo Airport. The potential, total CLA is 1,050 sq m. The facility is projected to open in the fourth quarter of 2022 and will be operated under the OK Minilager brand. The second acquisition in the quarter is a property in Stange. This is also a new building. The property is located just south of Hamar, close to the E6 highway. Potential total CLA is 600 sq m. The facility is projected to open in the fourth quarter of 2022 and will also be operated under the OK Minilager brand. In the quarter, we acquired a land plot for development just north of Bergen. This project has a potential total CLA of 1,200 sq m. We have received the building permission for this project, and the facility is projected to open in the second quarter of 2023. The facility will be operated under the OK Minilager brand. In Esbjerg, in Denmark, we have a conversion project which we acquired in the quarter. Esbjerg is the fifth largest city in Denmark. The potential total CLA of this project is 900 sq m. The facility is projected to open in the first quarter of 2023 and will be operated under the City Self-Storage brand. We have a strong pipeline at the moment. Here are some selected conversion and expansion projects which we are working on at the moment. At Persveien 28 in Oslo, the conversion of a five-floor office building has started. We now plan to open this project in the first quarter of 2023. This property is highly visible in an attractive development area in Oslo. We have received the building permission to convert the remaining area of a property in General Birchs gate in Oslo into self-storage. We plan to open part of the new area in the first quarter of 2023. This facility is already our largest facility, and we have additional development potential within the property. At Billingstadsletta 91 in Asker, we have started the project. We got the permission to convert the building this quarter, and we plan to open part of the building in the first quarter of 2023. We have four greenfield projects which we are working on at the moment. We have received the building permission for the project in Skien, and the construction of this new building is in progress. We plan to open in the second quarter of 2023, and the facility will be operated under the City Self-Storage brand. We plan to develop a new facility on a land plot in Sørlandsparken in Kristiansand. Sørlandsparken is one of the largest commercial areas in Norway. We expect to get the building permission by the end of 2022 and to open the facility next year. The facility has an estimated lettable area of 2,400 sq m CLA and will be operated under the City Self-Storage brand. We plan to develop a new facility on a newly acquired land plot at Smølsen in Sarpsborg. Building permission process is initiated, and we plan to open during the second quarter of 2023. The facility has an estimated lettable area of 2,000 sq m and will be operated under the City Self-Storage brand. The fourth greenfield development project is the newly acquired property in Knarvik, north of Bergen. We received the building permission, and we plan to open during the second quarter of 2023. The facility will have an estimated lettable area of 1,100 sq m and be operated under the OK Minilager brand. In the third quarter, SSG signed the agreement to acquire a property in Trollhättan in Sweden. The Trollhättan acquisition will be the group's first freehold investment in Sweden. The property has a Potential Lettable Area of 1,300 sq m, and the facility is projected to open in the second quarter of 2023. SSG is planning to grow the footprint in Sweden in both small and larger markets based on the group's existing Swedish platform. In Q1 2023, a leasehold facility at Järfälla in Sweden with a CLA of 3,300 sq m will be discontinued. SSG's rent levels are positioned to outpace cost inflation. SSG's high margin business model and rent increase, income flexibility is advantageous in a high inflation environment. Fit-out material cost has increased with 30%-40% during the past 12 months. SSG has implemented several cost saving measures on projects to partially offset delays and increased cost on fit-out. Steel is the main component in fit-out installations, but the fit-out cost is a smaller part of the total investment in new properties. SSG has a low carbon footprint. We aim to be part of the circular economy as we give our customers the opportunity to take care of their belongings instead of throwing and later buying new, and then by that, reducing consumption. SSG is converting vacant buildings into self-storage, extending the building lifetime. Our greenfield projects are built according to strict Nordic building regulations. SSG has limited energy consumption with a focus on reducing the use of electricity per square meter even further. Over 70% of owned facilities have full LED lighting and 11% have partly LED lights. All new facilities are equipped with LED. SSG has a strong platform for further growth. We focus on organic growth in Greater Oslo, strengthening the position of both the CSS and OK Minilager brands in the region. We focus on larger urban areas in Norway. We see a growth potential within smaller markets in Norway. We also see organic growth opportunities in both larger and smaller markets in Sweden and Denmark. In addition to this, we see opportunity for M&A in Scandinavia. Lastly, I would like to summarize our strategy. We focus on keeping occupancy at our target of 90%, at the same time as we optimize rent levels to outpace inflation. We continue to include sustainability as an integrated part of our business. We focus on lean operation, self-service, and customer experiences. We invest in CRM, automation, and digital platforms. We plan to strengthen our market-leading position in Norway even further. We focus on growing our freehold portfolio in selected urban markets in Scandinavia. We plan to for organic growth in Sweden and Denmark, and we look to selectively acquire existing self-storage operators across the Nordics. This was the end of our presentation. Thanks for your time.
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