Welcome to the fourth quarter presentation for Self Storage Group. My name is Fabian Søbak. I'm CEO of the company, and I will be presenting together with my colleague, Cecilie Knabi, who is CFO. Cecilie will start going through the results for the fourth quarter. Good morning. I will take you through SSG's financial development and results for the fourth quarter and full year 2022. The fourth quarter continued the strong and positive operational development for SSG. Our footprint in Scandinavia is growing, and we had, at the end of the quarter, 135 facilities with 31,100 storage rooms. We had a total lettable area of 221,600 square meters, of which 185,800 was in operation. 17,300 was opened during 2022, exceeding the target of opening 15,000+ during the year. The leasehold facility, Gärdet, in Sweden will however close in the first quarter this year and is not included in the KPIs for the fourth quarter. The closing of the facility reduces the group's lettable area by 3,300 square meters, giving a net change in CLA of 14,000 square meters for 2022. We have a strong pipeline of 35,800 lettable area under development and a solid foundation for further profitable growth and expansion. In Q4, we had revenues exceeding NOK 100 million, an increase of 11% compared to Q4 2021. The growth in revenues is related to high occupancy across all s-segments, increased average rent, and organic growth through opening of new facilities and expansions. Adjusted EBITDA increased with 12% to NOK 48.6 million in Q4 2022 compared to Q4 2021. There were NOK 1 million in non-recurring items in Q4 and none in Q4 2021. The change in fair value of freehold investment property is minus NOK 30 million for the fourth quarter due to yield expansion compared to NOK 302 million in the fourth quarter '21, which had a significant yield compression. This is a non-cash P&L charge, and there are no other elements impacting the valuation of the portfolio at year end '22. Adjusted profit before tax was minus NOK 9 million in the fourth quarter compared to NOK 330 million in the fourth quarter '21. Demand is strong despite the slower winter season, and occupancy is close to target level. Average occupancy for sites open more than 12 months in the fourth quarter was 86.5% compared to 90.2% in fourth quarter '21. Average rent was NOK 2,395 per square meter per year, an increase of 6% compared to fourth quarter 2021. Four properties were acquired during the quarter, three in Norway and one in Sweden. For full year 2022, we had all-time high revenues of NOK 392.2 million, an increase of 13% compared to full year 2021. Adjusted EBITDA increased with 9% to all-time high, NOK 225.5 million compared to full year 2021. There were non-recurring items of NOK 1 million in 2022 and NOK 3.4 million in 2021. The decrease in fair value of freehold investment properties of NOK 147 million for the full year 2022 is related to yield expansion in the property market during the autumn, driven by rising interest rates, partly offset by CPI adjustment of market rent of the properties. This is a non-cash P&L charge, and there are no other significant elements impacting the valuation of the portfolio. Adjusted profit before tax was -NOK 9.1 million compared to NOK 444 million in 2021. During 2022, eight facilities and 7,300 square meters were opened. At the end of December, we had 185,800 lettable area to offer our customers. During the year, 17,300 were opened. The opening of 8 new facilities added 7,700 square meters to the portfolio, and 9,600 of the increase is expansions on already opened facilities. The leasehold facility in Gärdet in Sweden will close in the first quarter this year and is not included in these key KPIs. Of the 185,800 square meters lettable to our customers, 171,300 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 December '22 compared to one year earlier. The chart on the lower right-hand side shows the increase in average occupied area for the mature facilities compared to the fourth quarter last year. Average occupancy for the mature facilities in Q4 was 86.5% and close to target level compared to 90.2% in Q4 2021. The occupancy is impacted by an increased share of large facilities newly defined as mature but still in lease up. The average rent per square meter per year for Q4 was NOK 2,395, an increase of 6% compared to Q4 2021. Prices was CPI adjusted in January this year, and street rates and the use of entry-offers are constantly evaluated. The like-for-like performance for facilities with comparable lettable area in Q4 2022 and Q4 2021 has an occupancy of 89.3% and average rent per square meter per year of NOK 2,432. A chart showing the development in occupancy and average rent for the mature facilities for the last year is included in the appendix. Average occupancy for the mature facilities at group level is 86.5%. As you can see of the chart on the upper left-hand side, occupancy has remained at the high levels in all segments and countries. In CSS Norway, the occupancy is impacted by an increased share of large facilities newly defined as mature but still in lease up. This multi-chamber is reported as part of the CSS concept, but it 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 of both new facilities and expansions, the latter partly impacting occupancy and average rent. The column to the right, on the charts, show the development like-for-like for the facilities. The like-for-like occupancy performance is 89.3% in the fourth quarter compared to 19.9% in the fourth quarter 2021. The chart on the lower left-hand side show average rent in NOK for mature facilities for both concepts and the three countries. CSS Norway achieve high average rent levels at around NOK 3,000 per square meter per year, while Sweden and Denmark have rates between NOK 2,200 and NOK 2,400. OK Minilager has rent levels at about NOK 1,800 per square meter per year. Low operational costs have made it possible to offer customers the lowest prices in the market and still achieve high margins. Average rent has increased in all companies across all company, all the segments and companies when, as you can see of the chart. Development in average rent in Sweden and Denmark is shown in constant currency. That means that the exchange rate for the fourth quarter 2022 is applied for the fourth quarter 2021. Revenue. Revenue for the fourth quarter was 100.4 million NOK, an increase of 11% since fourth quarter 2021. The revenue growth is related to development of new CLA through opening of new facilities and expansions and increased average rent. Total adjusted operating costs in the fourth quarter 2022 are NOK 3.9 million higher than in the fourth quarter last year. Property-related expenses are impacted by growth in lettable area and number of facilities in the portfolio. There are also costs related to properties in the pipeline not yet in operation, like property tax and insurance. Salary and other employee benefits are mainly related to annual wage increases in addition to non-recurring costs connected to restructuring of management in the Danish organization. The number of full-time equivalents in the group is stable, the mix of positions have changed. Other operating expenses are impacted by project costs for a new ERP system, temporary double licenses, and development of an integrated CRM system. The group has focused on IT, branding, and organizational development to level up the scalable platform for future growth. The non-recurring cost in other operating expenses are related to acquisition of properties. In total, there were non-recurring costs of 1 million NOK in the fourth quarter 2022 and none in fourth quarter 2021. Adjusted EBITDA in the fourth quarter was 54.5 million NOK, an increase of 5.9 million NOK compared to Adjusted EBITDA in fourth quarter 2021. The EBITDA margin for the quarter was 54.3%, which is slightly higher than compared to fourth quarter last year. Revenue for full year 2022 was all-time high with 392.2 million NOK, an increase of 13% compared to last year. There were 1 million NOK in non-recurring items in 2022 and 3.4 million NOK in non-recurring items in 2021. Adjusted EBITDA for full year increased from NOK 206 million in financial year 2021 with 9% to all-time high NOK 225.5 million in 2022. The EBITDA margin for financial year 2022 was 57.5%. We expect the EBITDA margin to continue to remain high since the marginal costs for the new unmanned facilities are low and the business model is highly scalable. Our strategy is to grow within freehold property. During the fourth quarter of 2022, the share in CLA of freehold property in operation continued to increase. The Swedish facility, Gärdet, with 3,300 square meters CLA will be discontinued in first quarter 2023 due to a lease expiration which could not be extended and impacts the share of leasehold. At the end of December 2022, 59% of Current Lettable Area in SSG is held freehold. The chart on the upper right-hand side shows the split between CSS and OK Minilager. 50% of Current Lettable Area in City Self-Storage is freehold, while 73% of Current Lettable Area in OK Minilager is freehold. The share of freehold is increasing in both segments, and all the area under development is freehold. Our freehold portfolio consists of 190,200 sq m gross area freehold property and 19,500 sq m gross area land 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 at the end of December 2022. Freehold investment property has increased with NOK 107.2 million from December 2021. The increase is related to acquisition of 15 properties, investment in several development and conversion projects, and exchange differences, partly offset by the change in fair value of NOK 147.2 million minus. The chart on the upper right-hand side shows the development in freehold investment property since the IPO in 2017. All freehold properties were appraised by an independent appraiser during the fourth quarter. The decrease of fair value of freehold investment properties of NOK 30 million in the fourth quarter and NOK 147 million for the full year is related to yield expansion in the property market during the autumn, driven by rising interest rates, partly offset by CPI adjustment on market rent of the properties. This is a non-cash P&L charge. There are no other element impacting the valuation of the portfolio. In 2021, the change in fair value was NOK 302 million in the fourth quarter and NOK 320 million for the full year. We are considering changing the current valuation methodology to one more commonly used by European peers. In this methodology, the full cash flow from operating the facility is included in the valuation, as opposed to the current methodology, which uses a market rent for the property as the basis for valuation. The chart on the lower left-hand side shows gross area and yield per region in the period 2020 to 2022. Total average yield in the group is 5.6% as of December 2022. Change in fair value over PNL 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 current lettable area since the IPO in 2017, consisting both of organic growth and growth from acquisitions. During 2022, we added 17,300 square meters organic growth, and we exceeded the goal of open more than 15,000 lettable area. The closing of Gärdet in the first quarter this year will, however, reduce CLA with 3,300 square meters and is excluded in the KPIs for the fourth quarter. For 2023, we are aiming to further accelerate development-led growth with a projected addition of more than 20,000 lettable area. We have 35,800 under development, including 12,500 rented to office tenants, and a total lettable area of 2,200. 221,600 square meters. We have a solid pipeline with 35,800 square meters under development. 22,600 is in the Greater Oslo area, as you can see on the map. We have rental income from part of the development pipeline, mainly from expiring contracts with office tenants. We opened 17,300 square meters during 2022 and are aiming to open more than 20,000 during 2023. The pie chart shows the distribution of Current Lettable Area in operation with a larger portion in the Greater Oslo area. The self-storage revenue can be calculated using these three KPIs, Current Lettable Area, occupancy, and average rent per square meter per year. As of December, we have a Current Lettable Area of 185,800. 171,300 of these has been in operation more than 12 months and are defined as mature. We have 35,800 square meter under development, and we are continuously working to increase lettable area further. We plan to open 20,000, more than 20,000 during 2023. We continue to experience high demand for our services, and the occupancy level for the fourth quarter was 86.5%, close to the target occupancy level of 90%. The average rent level for the fourth quarter was NOK 2,395 per square meter per year. Prices was CPI-adjusted in January 2023. Street rates and the use of entry-offers are constantly evaluated. Reported revenue for the fourth quarter was NOK 100.4 million, including NOK 9.2 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 with high margins. There will be operating costs related to maintenance and operation of 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 December 2022, with an equity ratio of 50%. Freehold investment property is NOK 2.5 billion and includes a pipeline of 35,800 square meters not yet opened. Interest-bearing debt amounted to NOK 1 billion as of December 2022. An addendum to the existing bank facility was entered into in December, increasing the term loan with NOK 200 million. The margin is 170 basis points, and with 69% of the interest fixed by the 5-year interest rate swaps we entered into in 2022 and 2021, the financial costs are at favorable terms and predictable. Net interest income and expense on borrowing in the fourth quarter 2022 amounted to NOK 5.2 million, a decrease from NOK 6.5 million in the fourth quarter 2021. Loan-to-value stands at moderate 43% and has good headroom to the covenant of 60%. We have a solid cash position of NOK 194 million and an undrawn revolving credit facility of NOK 245 million, with no other restriction than the general covenants. The demand for self-storage is growing and has proven to be re-resilient during previous recessions. The value of SSG's platform in a challenging market remains strong, and we anticipate that a deteriorating property market will continue to create attractive investment opportunities for SSG. We have a solid financial position, a strong organizational and attractive assets, and we are well-positioned to leverage our scalable platform for further profitable growth and expansion. Fabian will take you through the business development in 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 in Scandinavia. The key driver for demand growth is urbanization and increased awareness. The growth of 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 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 with 11 facilities in Copenhagen and Jutland. The self-storage market is growing in all of Scandinavia. We have identified the six most important success factors in self-storage. An important factor for profitability is scale. In, 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 automations, which is another important success factor. To succeed in self-storage, 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, SSG 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 are manned. We have 49 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. This year, we will enter both the Grønland and Kristiansand market with two CSS facilities in each region. OK Minilager is our countrywide discount priced offering. We have 86 facilities across Norway. OK Minilager is the second largest operator in Norway behind City Self-Storage, and all the facilities in the OK Minilager segment are unmanned. While we have two separate brands in the market, 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. About 80% of our customers are private customers, and 20% are business customers. Average rental time per customer is approximately 12 months. Customer satisfaction is an important metric for us, which we follow closely. There are a number of different 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 strong demand in the business segment. Our business model with online booking is highly scalable. With a digital model, we can open both large and small facilities. SSG offers a fully digitized customer journey with e-signing and automatic credit check. We have an app-based access system on a number of stores, which we are currently rolling out. Our customers are able to get in contact with us through their preferred channel with our omni-channel service software. SSG continues to invest in IT. A new ERP system was implemented for the Norwegian companies in Q4 and continued in January 2023 for City Self-Storage in Sweden and Denmark. A new website for OK Minilager was launched in the third quarter. A new website for City Self-Storage Sweden launched in the fourth quarter. A new Danish website will be released in the first quarter of 2023. In Q1 2023, City Self-Storage Sweden and Denmark have been unified on the same platform as the Norwegian companies. With all data on one platform, SSG is well positioned to utilize business intelligence and analytics at scale. We have four greenfield projects which are in progress. The greenfield project at Rødmyr in Skien is nearly completed. We are currently installing fit-out, and we plan to open this facility in April. The facility will be operated under the City Self-Storage brand. We plan to develop a new facility on our newly acquired land plot at Kampenesmåsan in Sarpsborg. The building permission is granted, and we plan to open this facility in the second half of 2023. The facility will have an estimated lettable area of 2,000 CLA and be operated under the City Self-Storage brand. We plan to develop a new facility on our land plot in Sørlandsparken in Kristiansand. Sørlandsparken is one of the largest commercial areas in Norway. We are currently waiting for the building permission, and we expect to open later this year. The facility has an estimated lettable area of 2,400 CLA and will be operated under the CSS brand. The 4th greenfield development project is a property outside of Knarvik, north of Bergen. The construction of this building is in progress, and we plan to open before the summer. The facility will have an estimated lettable area of 1,100 CLA and will be operated under the OK Minilager brand. SSG has a strong pipeline, and we want to highlight some selected conversion and expansion products which we are working on at the moment. At Persveien 28 in Oslo, the conversion of a 5-floor office building is almost complete. We plan to open in Q1 2023. This property is highly visible in an attractive development area in Oslo. We are currently converting the remaining area of our property in Adamstuen in Oslo into self-storage. We plan to open part of the new area in the 2nd quarter of 2023. This is already our largest facility, and we will add several hundred units to the facility this spring. At Billingstad, in Billingstadsletta in Asker, we opened 1 more floor of the building in December, and we are in the progress to install fit-out on the next floor of the building. We have also added some new facilities to the pipeline during the 4th quarter. The first property we have acquired in the quarter is a property in Grimstad. This is a new building. This will be our 2nd facility in Grimstad, and the total potential CLA is 850 square meters. The facility is projected to open in the 2nd quarter of 2023 and will be operated under the OK Minilager brand. The second acquisition in the quarter is a property in Arendal. This is also a new building located just north of Arendal and close to the E18 highway. This is our third facility in Arendal. The total CLA is also 850 square meters, and the facility opened in the fourth quarter of 2022. In the fourth quarter, SSG acquired a property in Trollhättan in Sweden. The Trollhättan acquisition is the group's first freehold investment in Sweden. The property in Trollhättan has a potential lettable area of 1,300 square meters, and the facility is projected to open in the second quarter of 2023 under the City Self-Storage brand. SSG is planning to grow the footprint in Sweden with both large and small markets based on the group's existing Swedish platform. SSG is continuing our organic growth strategy in Sweden and Denmark. In 2023, we have signed agreements to acquire 2 new properties. In Vejle in Denmark, we have acquired or signed the agreement to acquire a building which we will convert into self-storage later this year. This is a highly visible property with a daily traffic count around 30,000. Vejle is Denmark's 9th-largest city, and the potential CLA is 1,400 square meters. In Malmö, Sweden, we have signed agreement to acquire a building which will be converted into self-storage. This is a central location with a significant catchment area in Malmö. The total potential CLA is 1,200 square meters, and the facility is projected to open in the 4th quarter of this year and will be operated under the City Self-Storage brand. 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. SSG is converting vacant buildings into self-storage and by that, extending the building lifetime. Our greenfield projects are built according to strict Nordic building regulations. SSG, in general, has limited energy consumption, but we continue to focus on reducing the use of electricity even further. We are currently piloting solar panels on one facility. In general, we obviously focus on all the stakeholders of the company. SSG has a strong platform for further growth. We focus on the organic growth in the greater Oslo area, strengthening our position of both City Self-Storage and OK Minilager in the region. We focus on the larger urban areas of Norway. We see a potential to enter more than 30 smaller markets where we not yet have any presence in Norway. We also look at organic growth opportunities in both small and larger markets in Sweden and Denmark. In addition to this, we see an opportunity for M&A in selected markets. I would like to summarize the strategy of SSG. We focus on keeping occupancy at our target at 90%, at the same time as we optimize rent levels to outpace inflation. We continue to include sustainability as an integral part of our business. We focus on lean operation, self-service, and customer experience. We invest in CRM, automations, and digital platforms. We've planned to strengthen our market-leading position in Norway even further. We focus on growing our freehold portfolio in selected markets. We plan to grow organically in Sweden and Denmark. At last, we look to selectively acquire existing self-storage providers in the Nordics. This was the end of the fourth quarter presentation. Thanks for your time.
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