The Q1 presentation from Self Storage Group. My name is Fabian Søbak. I am 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, welcome to the Q1 results presentation. The strong and positive operational development for SSG continued in the Q1. Our footprint in Scandinavia is growing, and we had, at the end of the quarter, 139 facilities with 31,500 storage rooms. We had a total lettable area of 228,700 square meters, of which 190,000 is in operation. In the Q1, we opened 4,200 square meters, and we plan to open in excess of 20,000 during 2023. We have a strong pipeline of 38,700 square meters lettable area under development, and a solid foundation for further profitable growth and expansion. In the Q1, we had adjusted revenues of NOK 101.7 million, an increase of 11% compared to Q1 '22. The growth in revenues is related to increased average rent and organic growth through opening of new facilities and expansions. The Swedish facility, Gärdet, was discontinued due to a lease expiration, and a compensation of NOK 3.4 million is classified as non-recurring income. Move-out cost of NOK 0.8 million are classified as non-recurring cost, giving a net compensation and non-recurring item of NOK 2.6 million. EBITDA adjusted for this compensation was NOK 57.2 million, which is an increase of 12% compared to Q1 '22. There were no non-recurring items in Q1 '22. The results from the operating business were positive and in line with our expectations, effects from change in fair value of freehold investment property and unrealized loss in foreign currency cost some negative non-cash movements. Demand is strong, although impacted by the slower winter season. The like-for-like occupancy, that is occupancy for facilities with the same CLA in Q1 2023 as in Q1 2022, was 86.8%, which at the same level as the 2022. Average rent increased by 8% to 2,537 NOK per square meter per year. It has been a busy quarter when it comes to acquisitions, a total of six properties were acquired in the quarter. Four in Norway and two in Denmark, adding 7,230 square meters in potential CLA to the portfolio. At the end of the quarter, a new bank facility agreement for 3 plus 1 plus 1 years with Handelsbanken, Danske Bank, and Nordea was signed. The new bank facility replaces the bank facility from 2021 and provides the group financial flexibility for further growth. SSG has favorable financial terms with 67% of total interest-bearing debt swapped to fixed rate at lower levels as of March. The interest rate swaps mature into 2025 and 2026. The like-for-like performance for facilities with comparable lettable area in Q1 2023 and Q1 2022 is robust, with an occupancy of 86.8% and near target of 90%, despite the slower winter season. Rents were CPI adjusted during the Q1, and like-for-like average rent has increased by 8% to 2,537 NOK per square meter per year. At end of March, we had 190,000 lettable area to offer our customers. Since Q1 2022, 13,800 square meters have been opened. The opening of 11 new facilities added 9,200 square meters to the portfolio, and 7,900 were added through expansions on already opened facilities. The closing of the leasehold facility, Gärdet, however, reduces the group's lettable area by 3,300 square meters, giving a net change in CLA of 13,800 since March 2022. Of the 190,000 square meters lettable area to our customers, 172,400 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 March 2023 compared to one year earlier. The chart on the lower right-hand side shows the increase in average occupied area for mature facilities in the quarter compared to Q1 2022. Average occupancy for mature facilities in the quarter was 84.5% compared to 88.8% in the Q1 2022. 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 the Q1 for the mature facilities was NOK 2,512, which is an increase of 8% compared to Q1 2022. A chart showing the development in occupancy and average rent for mature facilities the last year is included in the appendix. The charts on this slide show occupancy and average rent in NOK for mature facilities for both concepts and the three countries, in addition to like-for-like performance. Average occupancy for mature facilities at group level is 84.5%. As you can see on the chart on the upper left-hand side, occupancy has remained at high levels through the winter season across both concepts and the three countries. In CSS Norway, however, occupancy is impacted by an increased share of large facilities newly defined as mature but still in lease up. On the chart on the right-hand side, you can see the development in Current Lettable Area. 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 chart on the lower left-hand side shows the development in average rent in NOK. Average rent for both in mature facilities and like-for-like have increased by 8% compared to Q1 2022. Average rent for mature facilities in the group was 2,512 NOK in the quarter, while like-for-like was 2,537 NOK for Q1 2023. CSS Norway achieve high rent levels at around 3,200 NOK per square meter per year, while CSS Sweden and Denmark have rates between 2,500-2,700 NOK. OK Minilager has rent levels at about 2,000 NOK per square meter per year, and low operational cost have made it possible to offer customers the lowest prices in the market and still achieve high margins. Revenue for the Q1 was NOK 105.1 million. Adjusted for the non-recurring compensation received related to the closing of Gärdet, adjusted revenue for the Q1 was NOK 101.7 million, which is an increase of 11% since Q1 2022. The revenue growth is organic and mainly related to the increased average rent and development on new CLA through opening of new facilities and expansions. Lease expenses for short-term contracts have increased by NOK 1 million compared to Q1 2022 and are impacted by high CPI adjustments for 2023 and exchange rate differences on lease agreements. Property-related expenses are impacted by growth in lettable area and number of facilities in the portfolio and has increased by NOK 2.7 million from Q1 2022. There are also costs related to properties in the pipeline, not yet in operation, like property tax and insurance. NOK 0.8 million of the property-related expenses are move-out cost incurred by closing of Gärdet and defined as non-recurring. The increase of NOK 1.1 million in salary and other employee benefits is related to annual wage increases and changes in the mix of positions compared to one year earlier. The number of full-time employees in the group is stable. Other operating expenses are at the same level as one year earlier. Other operating expenses are still impacted by projects cost for new IT systems and some temporary double licenses, but this is offset by lower level of bad debt and marketing cost compared with Q1 2022. Total adjusted operating costs in Q1 2023 are NOK 4 million higher than in Q1 last year. The net compensation of NOK 2.6 million is defined as non-recurring. There were no non-recurring items in the Q1 2022. Adjusted EBITDA in the Q1 was NOK 57.2 million, an increase of 12% compared to Adjusted EBITDA in Q1 2022. The Adjusted EBITDA margin for the quarter is 54.4%. Our strategy is to grow within freehold property. The share of freehold property in operation shows a steady growth. At the end of March, 60% of Current Lettable Area in SSG is held freehold. We opened 7,300 lettable area during 2022. We plan to accelerate growth by opening in excess of 20,000 square meters this year. The entire pipeline of 38,700 square meters is freehold and will increase the share of freehold to 67% when opened. The chart on the upper right-hand side shows the split between CSS and OK Minilager. 51% of current lettable area in City Self-Storage is freehold, while 74% of current lettable area in OK Minilager is freehold. Our freehold portfolio consists of approximately 220,000 square meters gross area freehold and 23,000 square meter gross area land for containers. Approximately 65%-70% of gross area is utilized as lettable area for self-storage. SSG has freehold property of NOK 2.7 billion as of March. Freehold investment property has year to date increased by NOK 121 million from December. The increase is related to acquisitions of 6 properties, 4 in Norway and 2 in Denmark, investments in several development and conversion projects, and exchange differences, partly offset by the change in fair value of minus NOK 22.5 million. The chart on the upper right-hand side shows the development in freehold investment property since the IPO in 2017. External valuations are reviewed on a quarterly basis. In the first quarter 2023, the yield expansion in the property market from 2022 continued. As a consequence, the group's independent appraiser has estimated a negative change to the fair value of the group's freehold investment property, partly offset by freehold investment properties first time appraised in the quarter. Net change in fair value amounts to -NOK 22.5 million in the Q1. This is a non-cash PNL charge, and there are no other negative elements impacting the valuation of the portfolio. 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 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 2020-2022. The total average yield in the group is 5.6% as of December 2022. Change in fair value over PNL back to 2017 is shown on the chart on the lower right-hand side. There has been a stable growth in lettable area as well, and the development of CLA is an important growth indicator for us. The growth since the IPO in 2017 consists of both organic growth and growth from acquisitions. During the this year, we added 4,200 square meters of lettable area and plan to open in excess of 20,000 during this year. We have 38,700 under development, including 13,000 square meters rented to office tenants, which gives a total lettable area close to 230,000 square meters. We have a solid pipeline, and of the 38,700 square meters under development, 21,900 is in the Greater Oslo area, as you can see on the map. We are growing in all our markets. We have rental income from 13,000 square meters of the developing pipeline, mainly from expiring contracts with office tenants. We expect to open 20,000 of the pipeline during 2023. 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 per year. As of March, we had current lettable area of 190,000 square meters. 172,400 of these had been in operation more than 12 months and are defined as mature. We have a pipeline of 38,700 under development. We continuously work to increase lettable area further and plan to open in excess of 20,000 square meters during this year. The occupancy level for the Q1 was 84.5% for mature facilities, trending near the target occupancy of 90%. There are many facilities still in lease-up, hence a potential to increase revenue. The average rent per square meter per year for the mature facilities in the Q1 increased by 8% to NOK 2,512 per square meter per year. Prices were CPI-adjusted in January this year. We see a potential to increase prices beyond annual CPI adjustments. Street rates and the use of entry offers are constantly evaluated. Reported revenue for the Q1 was NOK 105.1 million, including NOK 13 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 at high margins. There will be operating costs related to maintenance and operation of the new facilities, but the business model has proven highly scalable. The financial position shows that total assets were NOK 3.7 billion as of March, with an equity ratio of 49%. Freehold investment property is NOK 2.7 billion and includes a pipeline of 38,700 square meters not yet opened. Loan-to-value ratio stands at moderate 42% and has good headroom to the covenant of 60%. Interest-bearing debt amounted to NOK 1.1 billion as of March, with 67% of the debt fixed by interest rate swaps. In the Q1, a gain of NOK 4.1 million on the interest rate swaps was received. Net interest income and expense on borrowing in the Q1 2023 amounted to -NOK 4.6 million, a decrease from -NOK 6 million in first quarter 2022. At the end of the quarter, SSG entered into a bank facility agreement with Handelsbanken, Danske Bank, and Nordea, replacing the existing facility with Handelsbanken and Danske Bank. The agreement amounts to NOK 1.2 billion in a term loan with maturity 3 + 1 + 1 years and interest rate three months NIBOR plus 190 basic points. Our revolving credit facility of NOK 300 million, with no other restrictions for drawing than other covenants, is included in the agreement. The agreement also entails a term loan accordion option of up to NOK 200 million. Net proceeds from repayment of the term loan and of the term and revolving credit facility from 2021 and payment of the new term loan were paid out in April, subsequent to the quarter. The attractive financial terms, coupled with the five-year interest rate swaps we entered into in 2020 and 2021 at low interest rates, provide us with financial flexibility to continue to execute on our strategy. 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. SSG has built a unique and endurable market share position over the past three decades. The strong pipeline already in the balance, coupled with low LTV, predictable financial cost, and a solid cash position, provides a solid foundation for further profitable growth and expansions. Now Fabian will go through the business development in the quarter. SSG has operations in three countries, with more than 31,500 storage rooms. We have a strong pipeline. 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 market is growing across all of Europe. 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. This is a position we are focused on developing even further. The market in Norway is fragmented, with a lot of small and regional local operators. In Sweden, the market is dominated by multinational operators. SSG is a regional operator in Stockholm. This year, we will enter the Malmö market with two facilities and also Trollhättan. In the Danish market, we are also competing against multinational operators. SSG has the second-largest geographic footprint in Denmark, with facilities on both Zealand and Jutland. The self-storage market is growing in all the three Scandinavian markets, and there is still room for consolidation. We have identified what we think is the six most important success factors in self-storage. An important factor for profitability is scale, and in self-storage, it takes a lot of 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 important success factor. To succeed, you also need good locations close to the target audience. 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 compete on both 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, but most of the facilities are unmanned. 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. This year, we will enter both Grønland, Kristiansand, and Malmö with two City Self-Storage facilities in each region. OK Minilager is our countrywide discount-priced offering. OK Minilager is the second-largest operator in Norway behind City Self-Storage. All the facilities in the OK Minilager portfolio is unmanned. Our strategy is to grow the geographic footprint of OK Minilager even further in the Norwegian market. While we have two separate brands, most of our back office functions are shared between the companies, like IT and marketing and operations. 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 individuals, and 20% are business customers. The average rental time per customer is approximately one year. The age of our private customers is somewhat evenly distributed. As you can see on the graph, the average age is 45 years. Customer satisfaction is an important metric for us, which we follow very 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. SSG's business model with online booking is highly efficient and highly scalable. SSG offers a fully digitized customer journey with e-signing and automatic credit check. We have an app-based access system, and our customers are able to get in touch with us through their preferred channel with our omni-channel service software. This is all built on modern IT infrastructure. SSG continues to invest in IT. We have had a busy past year. A new ERP system was implemented in the Q4 of 2022 and the Q1 of 2023. A new website for OK Minilager was launched in the Q3 of 2022. A new website for City Self-Storage Sweden was launched in the Q4 of 2022, a new website for City Denmark was launched in the Q1, 2023. In the Q1 2023, City Self-Storage Sweden and Denmark have been unified on the same CRM platform as the Norwegian companies. SSG will continue to innovate with leading IT systems. We have four greenfield projects which are in progress. The greenfield project in Rødmyr in Skien opened in the beginning of May. This is a three-floor building with a CLA of 3,100 square meters, the facility is located in a large commercial area in Grenland. The development of our new greenfield project at Kampenesmosen in Sarpsborg is in progress, we plan to open this facility in the Q3 of this year. This is our second facility in Sarpsborg. The facility has an estimated lettable area of 2,000 square meters CLA and will be operated under the City Self-Storage brand. The building permission for our greenfield project in Sørlandsparken in Kristiansand is granted. We expect to open this facility late this year. The facility will have an estimated lettable area of 2,400 square meters, and the facility will be operated under the City Self-Storage brand. The fourth greenfield project, under development is a property outside Knarvik, just north of Bergen. The construction of this building is nearly complete, and we plan to open before the summer. The facility has an estimated lettable area of 1,100 CLA and will be operated under the OK Minilager brand. SSG currently have a strong pipeline. Here are some selected conversion and expansion projects which we are working on at the moment. At the Persveien 28 in Oslo, the conversion of a 5-floor office building is almost completed. We plan to open this facility at the end of May. This property is highly visible in an attractive development area in Oslo. We are currently converting the remaining area of our property in General Birchs gate in Oslo into self-storage. We plan to open part of the new area in the Q2 of 2023. This is already our largest facility. We will add several hundred new units with this expansion. At Billingstadsletta 91 in Asker, we opened one more floor in December last year. We are in the progress to install fit-out on the next floors of this building. The Q1 has been busy on the acquisition side, with 6 acquisitions completed. The first is a property in Randers in Denmark. This is a former grocery store, which we will convert into self-storage. This will be our second facility in Randers, and the property has a total potential CLA of 550. We expect to open this facility late this year. The second is also a property in Denmark in Vejle. Vejle is Denmark's 9th-largest city. This property has great street visibility, and we plan to open the facility in the Q4 this year. In Kristiansand, we have acquired a property located just west of the city center. Kristiansand is Norway's 6th-largest city, and we plan to open this facility in the Q3 of 2023. In Porsgrunn, in Grenland, we have acquired and opened a new facility in the quarter. This property has a good location with easy access from E18. The property has 1,500 square meters of CLA. At Askøy, just outside Bergen, we have acquired a new building, which is already opened. This project has 1,050 square meters CLA. This is one of three facilities which we will open in the Bergen region this year. Another property in Bergen is our acquisition in Sandviken. This is a smaller property located close to the University in Bergen, we plan to open this facility in the Q3. With these three openings in Bergen, we will add more than 500 storage rooms to the Bergen region this year. SSG has a low carbon footprint. We aim to be part of a circular economy as we give our customers the opportunity to take care of their belongings. SSG is converting vacant buildings into self-storage and then 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. We are currently piloting solar cells on one facility in Norway, and we also focus on all the stakeholders of the company, not just the E in ESG. SSG has a strong platform for further growth. We focus on organic growth in the greater Oslo region, strengthening the position of both the City Self-Storage and OK Minilager in the region. We focus on the larger urban areas in Norway. We also see a potential to enter more than 30 smaller markets with a population of at least 10,000 people, and those are markets where we currently have no operations. We also see growth potential within our existing, smaller and regional markets in Norway. We also see growth opportunities in both large and small markets in Sweden and Denmark. In addition to this, we see an opportunity for M&A across Scandinavia. At last, I would like to summarize the strategy of SSG. 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 operations, self-service, and great customer experiences. We invest in CRM, automation, and digital platforms. We plan to strengthen our market position in Norway even further. We focus on growing our freehold portfolio in selected urban markets. We plan for organic growth in Sweden and Denmark, and we look to selectively acquire existing self-storage providers across the Nordics. This was the end of our Q1 presentation. Thanks for your time.
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