Good morning, and welcome to Self Storage Group's second quarter results. 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 second quarter and first half year 2023 result presentation. I will go through the financial results for the period. SSG continues to deliver solid organic revenue growth at attractive margins. We continuously develop new area for self-storage, and during the quarter, 6,000 square meters CLA was opened. As of June, we have opened 10,200 square meters CLA, and are on track to reach the target of opening more than 20,000 square meters CLA development-led growth in 2023. At the end of the quarter, we had 142 facilities with 32,600 storage rooms to offer our customers. Total lettable area amounted to 236,100 square meter, of which 100, of which 196,000 was in operation. The development pipeline of 40,100 square meters is record high and gives a solid foundation for further profitable growth and expansion. In the second quarter, we had total revenues of NOK 104.2 million, an increase of 6.5% compared to second quarter 2022. Self-storage revenues had an increase of 8%, but other income declined by NOK 0.8 million in the period. The growth in self-storage revenues is related to increased average rent and organic growth through opening of new facilities and expansions. EBITDA was NOK 62.9 million, which is an increase of 5.5% compared to second quarter 2022. There were no non-recurring items in the second quarter 2023, nor in second quarter 2022. Net finance in second quarter 2023 was minus NOK 27.1 million, compared to minus NOK 9.3 million in second quarter 2022. The new bank facility agreement was signed at the end of the first quarter and paid out in April. Interest expense in the second quarter is highly impacted by accurate non-cash amortization of the facility, which was repaid one year before plan, but there were no early redemption fees. Profit before tax in the second quarter was NOK 15.6 million, compared to NOK 31.4 million one year earlier. Demand is strong, although impacted by lower move-in rates during the winter season compared to the COVID years. The like-for-like occupancy, that is, occupancy for facilities with the same CLA in second quarter 2023 as in second quarter 2022, was 87.5%, down from 89.8%, while average rent increased by 9% to NOK 2,403 per square meter per year. In the quarter, three facilities were opened, two in Norway and one in Sweden. Two properties in Sweden were acquired, adding 5,900 square meters in potential CLA to the portfolio, in addition to the acquisition of one formerly sold land property in Norway. In the first half 2023, we exceeded NOK 200 million for the first time with adjusted revenues of NOK 206 million, an increase of 8.5% compared to first half 2022. The growth in revenue is related to increased average rent and organic growth through opening of new facilities and expansions. In the first quarter this year, 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 costs of NOK 0.8 million are also classified as non-recurring costs, giving a net compensation and non-recurring item of NOK 2.6 million for the first half 2023. EBITDA, adjusted for the net compensation, was NOK 120 million, which is an increase of 8.5% compared to first half 2022. There were no non-recurring items in the first half 2022. As of June, we have 196,000 square meters CLA in operation and a record high pipeline of 40,100 square meters under development, which ensures continued growth. Loan to value of freehold investment property is 46% and has good headroom to the covenant of 60%. Total value of freehold investment property end of June was NOK 2.8 billion. The like-for-like performance for facilities with comparable lettable area in second quarter 2023 and second quarter 2022 is robust, with an occupancy of 87.5% and near target of 90. Lower move-in rates during the winter season compared to the COVID years have impacted occupancy in the quarter. The development in the second quarter, however, has been strong, with record high number of move-ins in June. Rents were CPI -adjusted in the first quarter. Like-for-like average rent in the second quarter has increased by 9% to NOK 2,493 per square meter per year. At the end of June, we had 196,000 lettable square meters to offer our customers. Since second quarter 2022, 18,800 square meters have been opened. The opening of 11 new facilities added 13,000 square meters to the portfolio, and 5,800 square meters 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 sale of 15,500 since June 2022. Of the 196,000 square meters lettable to our customers, 176,200 have been in operation for more than one year and are defined as mature. The chart on the lower left-hand side shows the increase in current lettable area, as of June 2023, compared to one year earlier, and the chart on the lower right-hand side shows the increase in average occupied area for mature facilities in the quarter compared to June 2022. Average occupancy for mature facilities in the first quarter was 85.3%, compared to 90.5% in the second quarter, 2022. The average rent per square meter per year for the second quarter was NOK 2,516, which is an increase of 8% compared to second quarter, 2022. A chart showing the development in occupancy and average rent for mature facilities for the last year is included in the appendix. This chart, the charts on this slide show occupancy and average rent in NOK for mature facilities for both concepts and the three countries, in addition for like-for-like performance. Average occupancy for mature facilities at group level is 85.3%. As you can see on the chart on the upper left-hand side, occupancy in both concepts and the three countries are lower than one year earlier. Lower move-in rates during the winter season compared to the COVID years have impacted occupancy in the second quarter. In addition, occupancy in CSS Norway is impacted by an increased share of large facilities newly defined as mature, but still in lease-up. The development during the second quarter, however, has been strong, with record-high number of move-ins in June. The like-for-like occupancy for the second quarter is 87.5% and close to the target of 90%. The chart on the right-hand side shows 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 occupancy and average rent. In connection with the change of CRM system, all areas rented to customers have been reviewed, and 500 square meters of self-storage area in CSS Denmark is reclassified as a space rented to office tenants. The reduction of CLA in CSS Sweden is related to the closing of Gärdet, offset by the opening of Trollhättan. The chart on the lower left-hand side shows the development in average rent in NOK. Average rent has increased across both segments and all three countries, following annual CPI adjustment in January and increased focus in the organization on optimizing rent. Average rent for mature facilities has increased by 8% compared to Q2 2022, and by 9% for the like-for-like facilities. CSS Norway achieve high rent levels at around NOK 3,100 per square meter per year, while CSS Sweden and CSS Denmark have rates between NOK 2,700-NOK 2,900. OK Minilager has rent levels at about NOK 1,800 per square meter. Low operational costs have made it possible to offer customers the lowest prices in the market and still achieve high margins. Revenue for the second quarter was NOK 104.2 million. Self-storage revenues amount to NOK 96.3 million and has increased by 8% since second quarter 2022. The increase is related to higher average rent and organic growth through opening of new facilities and expansions. Other income, however, has declined by NOK 0.8 million compared to second quarter 2022. The decrease is mainly related to fewer manned facilities offering ancillary products, in addition to reduced income from parking at Adamstuen, as a new floor will be opened for self-storage. Lease expenses for short-term contracts have decreased by NOK 0.4 million compared to second quarter 2022. Property-related expenses are impacted by growth in lettable area and number of facilities in the portfolio and have increased by NOK 2 million from second quarter 2022. Property-related expenses include costs related to properties in the 40,100 square meter pipeline, not yet in operation, like property tax and insurance. The decrease of NOK 1.9 million in salary and other employee benefits is related to a change in timing of holiday pay for Norwegian employees. The number of full-time employees in the group is stable. Other operating expenses has increased by NOK 3.4 million compared to second quarter, 2022, and are impacted by temporary higher bad debt provisions following the implementation of the new CRM and ERP system in Denmark. Bad debt provisions are normally on a low level, and it is a focus area in SSG to keep bad debt at low levels. There were no non-recurring items in the second quarter, 2023, nor in second quarter, 2022. EBITDA in the second quarter was NOK 62.9 million, an increase of 5.5% compared to second quarter 2022. The EBITDA margin for the quarter is 60.3%. Revenue for the first half year was NOK 209.4 million. Adjusted for the non-recurring compensation received related to the closing of Gärdet, adjusted revenue for the first half year was NOK 206 million, which is an increase of 8.5% since first half 2022. The revenue growth is organic and is related to increased average rent and development of new CLA through opening of new facilities and expansions. Lease expenses for short-term contracts have increased by NOK 0.3 million compared to first half 2022. Property-related expenses are impacted by growth in lettable area and number of facilities in the portfolio and have increased by NOK 4.7 million from first half 2022. Property-related expenses also includes costs related to properties in the record high pipeline, like property tax and insurance. NOK 0.8 million of the property-related expenses are move-out costs incurred by the closing of Gärdet and defined as non-recurring. The decrease of NOK 0.8 million in salary and other employee benefits is related to the change in timing of holiday pay for the Norwegian employees. Other operating expenses have increased with NOK 3.4 million and are impacted by the temporary higher bad debt provisions, following the implementation of the new CRM and ERP system in Denmark. Total adjusted operating costs in the first half year 2023 are NOK 6.7 million higher than in first half year last year. The net compensation of NOK 2.6 million is defined as non-recurring item. There were no non-recurring items in the first half 2022. Adjusted EBITDA in the first half 2023 was NOK 120 million, an increase of 8.5 compared to 5% compared to first half 2022. The Adjusted EBITDA margin for first half year is 58.3%. We have a steady growth in, within freehold property. The share of freehold property in operation is increasing. At the end of June, 62% of current lettable area in SSG is held freehold. We opened 17,300 lettable area during 2022. As of June, we have opened 10,200 square meters CLA, and are on track to reach the target of opening more than 20,000 square meters that development -led growth in 2023. The entire pipeline of 40,100 square meter is freehold, and will increase the share of freehold to 69% when opened. The chart on the upper right-hand side shows the split between CSS and OK Minilager. 54% of current lettable area in the City Self-Storage segment is freehold, while 75% of current lettable area in OK Minilager is freehold. Our freehold portfolio consists of approximately 225,000 square meters gross area, freehold property, and 26,500 gross area land for containers. Approximately 65%-70% of gross area is utilized as lettable area for self-storage. SSG has freehold investment property of NOK 2.8 billion as of June 2023. Freehold investment property has year to date increased by NOK 234.3 million from December. The increase is related to the acquisition of nine properties, five in Norway, two in Sweden, and two in Denmark, investment 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 properties since the IPO in 2017. External valuations are reviewed on a quarterly basis. In the first quarter 2023, the independent appraiser estimated a negative change in the fair value of freehold investment properties, driven by rising interest rates and the following yield expansions in the property market. Inflation is expected to exceed the long-term inflation target over the next years, which drive rent and increases the value of the freehold portfolio. The benefit is offset by negative effects from yield expansions in the property market. Hence, for the second quarter, the appraiser has concluded that there is no further indication of change to the fair value of freehold investment properties in SSG. Net change in fair value amounts to NOK -22.5 million in the first half year 2023. This is a non-cash P&L charge, and there are no other negative elements impacting the valuation of the portfolio. We are considering changing the current valuation methodology to the 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, 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, with an average yield in the group of 5.6% as of December 2022. Change in fair value over P&L back to 2017 is shown on the chart on the lower right-hand side. The development of 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 of both organic growth and growth from acquisitions. During the first half year, 2023, we added 10,200 square meters of lettable area to the portfolio, and we plan to open in total more than 20,000 square meters during this year. We have 40,100 square meters under development, including 14,300 square meters rented to office tenants, which gives a total lettable area of 236,100 square meters. We have a record high pipeline of 40,100 square meters under development and are on track of opening in excess of 20,000 square meters during this year. 17,100 square meters of the pipeline is in the Greater Oslo area, as you can see on the map. We are growing in all markets. We have rental income from 14,300 of the development pipeline, mainly from expiring contracts with office tenants. The pie shows the distribution of current lettable area in operation with a larger portion in the Greater Oslo area. Self-storage revenue can be calculating by using the three KPIs, current lettable area, occupancy, and average rent per square meter. As of June, we had current lettable area 196,000 square meters. 176,200 of these have been in operation more than 12 months and are defined as mature. We have 40,100 square meters under development, and we are continuously working to increase lettable area further, and we are on track to open 20,000 square meters during this year. The occupancy level for the second quarter is 85.3% for mature facilities. Many facilities are still in lease up, and there is a significant potential to increase revenue. We continue to experience high demand for our services, and the development during the second quarter has been strong, with record high number of move-ins in June. The average rent level for mature facilities in the second quarter increased by 8% to NOK 2,560 per square meter per year. Prices were CPI adjusted in January this year, but we see a potential to increase prices beyond annual CPI adjustments, and street rates and the use of entry offers are constantly evaluated. Reported revenue for the second quarter was NOK 104.2 million, including NOK 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 at high margins. There will be operating costs related to maintenance and operation of new facilities, but the business model has proven highly scalable. The financial position shows total assets of NOK 3.9 billion as of June, with an equity ratio of 48%. Freehold investment property is NOK 2.8 billion and includes the pipeline of 40,100 square meters, not yet opened. Loan-to-value stand at moderate 46% and has good headroom to covenant of 60%. SSG enjoys attractive financial terms. The new bank facility, coupled with a 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. Interest-bearing debt amounted to NOK 1.3 billion as of June 2023, with 59% of the debt fixed by interest rate swaps. Year to date, a gain of NOK 8.2 million of the interest rate swaps have been received. The new bank loan was paid out in April, and the former bank facility was repaid a year before planned. Due to the early redemption, as well as a technical error in the amortization schedule, an accurate non-cash amortization was recorded in the quarter. There were no early redemption fees. During the quarter, the company paid and expensed NOK 16.7 million in net interest. The increase in net interest paid in the second quarter 2023 compared to second quarter 2022, relates to high interest and timing of interest paid on the new bank facility. With a new bank facility, the schedule for payment changed, and interest paid in the second quarter applies to more than a quarter, 4.5 months to be exact. SSG has built a unique and durable market share position over the past three decades. The strong balance sheet, combined with a record high development pipeline, provides a scalable platform for future growth in the Nordics. Now Fabian will go through the business development for the quarter. Thank you, Cecilie. There is a significant untapped potential for self-storage in the Scandinavian markets. Square meters per capita is lower compared to the more mature markets. Awareness about self-storage is still low, and the market is growing across all, 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, and this is a position we are focused on developing even further. The market is fragmented with a lot of small, local and regional operators. In Sweden, the market is dominated by multinational operator, operators. SSG is a regional operator in Stockholm. In 2023, we have opened the first property outside of Stockholm in Trollhättan, and we will enter Malmö later this year. 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. We have several projects in development. The self-storage market is growing in all of the three Scandinavian countries, and there is still consolidation opportunities. 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 in self-storage, you also need to have 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 are able to compete on both value and price. City Self-Storage is our high-end brand, providing self-storage and related services in the larger Scandinavia cities. Some of the facilities are manned. We have 54 facilities in the City Self-Storage segment 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 in Norway. We have 88 facilities across the country. OK Minilager is the second largest operator in Norway behind City Self-Storage. All the facilities in the segment are unmanned. Our strategy is to grow the geographic footprint of OK Minilager in Norway even further. While we have two separate brands, we use the same IT systems, and most of the back office functions are shared between the companies. SSG have 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. The average rental time per customer is approximately one year. The average age of our individual customers is 45 years. 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. The businesses also have a number of reasons for storing. Our 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 contact with us through their preferred channel with our omnichannel service software. All of our solutions are built on modern IT platforms. IT is important for SSG, and we continue to make investments in IT. A new ERP system was implemented in the fourth quarter of 2022, and the first quarter of 2023. A new website for OK Minilager was launched in the third quarter of 2022. A new website for City Self-Storage Sverige was launched in the fourth quarter of 2022, a new website for City Self-Storage Danmark was launched in the first quarter of 2023. In the first quarter of 2023, City Self-Storage Sverige and Denmark have been unified on the same CRM platform as the Norwegian companies. We have three greenfield projects which are in progress. The development of our greenfield project at Kampenesmosen in Sarpsborg is in progress, and we plan to open the facility in the third quarter. This is our second facility in Sarpsborg. The facility will have an estimated lettable area of 2,000 CLA and be operated under the City Self-Storage brand. The development of our greenfield project at Sørlandsparken in Kristiansand is also in progress, and we plan to open this facility in the first quarter of 2024. The facility has an estimated lettable area of 2,700 CLA and will be operated under the City Self-Storage brand. The third greenfield development project in progress is a property outside of Knarvik, north of Bergen. The construction of this building is complete, and we opened in July. The facility will have a lettable area of 1,100 CLA and is operated under the OK Minilager brand. SSG has a strong pipeline, and here are some selected conversion and expansion projects which we are working on at the moment. We are currently converting additional area of our property in General Birchs gate in Oslo into self-storage. Part of the third floor of this building opened in July. This is already our largest facility. We have added around 300 storage rooms with a recent expansion. At Billingstadsletta in Asker, we have opened two additional floors, and we are in progress to install fit-out on the next floors of the building and to build a new lift as well. In Kristiansand, Fidjemoen, we are in progress to convert an existing building into self-storage. This project has an estimated lettable area of 2,300 square meters. In Malmö, Arlöv, we have started the planning and zoning process to convert the building into self-storage. The building has an estimated lettable area of 4,700 square meters and will be opened in phases. SSG have acquired three properties in the second quarter. The first is a property in Arlöv, in Malmö, Sweden. This is a landmark property in Malmö, with a central location and unique visibility from main roads. The lettable area potential is 4,700 square meters. We expect to open the first phase of this project in the first quarter of 2024. The second is our is also a property in Malmö, in Fosie. The property has a central location in Fosie, with easy access from main roads. We plan to open in the last quarter of this year, with an estimated lettable area of 1,400 square meters. We have also acquired a proper land plot in Ålesund, Norway. This is an existing leasehold, which we convert into a freehold, and there is additional development and potential on the property. We have highlighted three selected market entries during 2023 and 2024. We introduced the City Self-Storage brand with two new facilities in each of these cities, taking an immediate market position. Kristiansand is Norway's eighth largest metropolitan area. OK Minilager have four facilities in the region. The two new City Self-Storage facilities have an estimated lettable area of 5,000 square meters combined. Grenland is Norway's seventh largest metropolitan area. OK Minilager have three facilities in the region. The two new City Self-Storage facilities opened in the first half year of 2023, with a combined CLA of 3,500 and an additional potential of 1,100 square meters. Malmö is Sweden's third largest metropolitan area. SSG have no existing facilities in the region. The two new facilities have an estimated CLA of 5,900 square meters combined. 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 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. Working conditions is a high focus for us. We have recently published a report in compliance with the Norwegian Transparency Act. This report can be found on our website. 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 brands. We focus on larger urban areas in Norway. We see a potential to enter more than 30 smaller markets with a population of at least 10,000 in Norway. We also see great growth potential within existing smaller markets in Norway. We see organic growth opportunities in both large and small markets in Sweden and Denmark. In addition to this, we see opportunity for M&A in selected markets. At last, I would like to summarize our strategy. 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 operations, self-service, and great 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. We plan to continue 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 second quarter presentation. Thanks for your time.
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