Q4 2020 presentation
11 ▪ 02 ▪ 2021
New interior @Midland Manchester
A well-diversified portfolio
Pandox Group | Property Management | Operator Activities |
156 35,060 Hotel properties Rooms | 136 29,273 Leased properties Rooms | 20 5,787 Operated properties Rooms |
SEK 59.5bn Property market value | 84% Property market value | 16% Property market value |
A strong network of brands and partners
Note: The logos are the property of the respective brand owners.
New restrictions, lower demand
Promising start in the quarter……but new restrictions led to gradually lower demandProfitable and cash flow positive
Continued strong financial and liquidity position
Return on equity2)
Growth in total net operating income1)LFL growth in NOI Property Management3)
1) Measured as net operating income Property Management and gross profit plus depreciation Operating Activities
2) Measured as growth in EPRA NAV, including dividend and excluding proceeds from directed share issue, at annual rate
Liquid funds and unutilised credit facilities
COVID-19 effects on Pandox
Reduced demand due to renewed COVID-19 related restrictionsMinimum and fixed rent main source of income (also expected in Q1)
Unrealised value changes explained by lower anticipated cash flows
Increase in trade account receivables reflecting new and temporary payment terms
Current revenue
Diversified revenue base
Revenues from different operational models and geographiesMinimum rent and fixed rent main source of revenue
• Approximately MSEK 500 per quarter
• Revenue-based rents of MSEK 48 in Q4 and MSEK 249 in FY 2020
Rent collection progressing in line with temporary payment termsNo reductions in hotel rents given
Revenues from Operator Activities of MSEK 117 in Q4
Property portfolio
Valuations based on established method
Value change
7
-4.8% YTD
Comments per 31 December, 2020
Valuations made according to same method and model used since the IPO 2015
Downward adjustments due to lower anticipated cash flows, mainly as a result of COVID-19
Conclusive transaction evidence for yields still missing
Yields and cash flow expected to be estimated with greater precision in the coming quarters
Due to COVID-19, only some 60 external valuations were completed during 2020
External valuations are on average some 6 percent below Pandox's internal valuations, but exhibit large dispersion both within and between markets
Total property portfolio market value amounted to MSEK 59,542 (63,469)
Average valuation yield for Investment Properties was 5.44 (5.41) percent and for Operating Properties 6.37 (6.41) percent
Financial position
Financing and capital structure
For definitions, see page 27 in Interim report January-December 2020
Pandox and COVID-19
Three focus areas
Respond - manage the acute phase of the crisisRestart - plan for the recovery
Reinvent - what's next?
Market update
Gaining new insights into the recovery
Recap: Hotel market development 2020
Show: Demand segments in Pandox's portfolio
Explore: Hotel markets outside Europe and their drivers of recoveryNew insights: Into the recovery
Six development levels…
…to get back to full performance
COVID-19 strikes and everything stops
COVID-19 arrives to Northern Europe in March 2020
Societies closed down and travel restrictions were implementedThe hotel market bottoms out in April
When restrictions were lifted in June/July the recovery starts
Summer holiday recovery
During the summer demand increases quite rapidly in EuropeDomestic leisure is the main driver
After the vacation period leisure demand remains stable on weekendsDomestic businesses begin to travel with first signs of smaller meetings
Early autumn plateau
In September occupancy is 45-55 percent in most of Pandox's domestic marketsUp to this point, the recovery is faster than many had expected
However, demand in larger and more international cities remain weak
Second wave brings new restrictions
In October new restrictions are implemented due to "second wave" infectionsIt becomes more difficult to operate hotels again
Demand decreases substantially across all segments
Germany: Occupancy 2020
Regional UK: Occupancy 2020
Nordic regional: Occupancy 2020
Source: Benchmarking Alliance
Demand segments in Pandox's portfolio
Occupancy performance 2020
20%
0%
-20%
-40%
-60%
-80%
-100%
Interstate
Source: Pandox
Resort
AirportSuburbanRegional CitySmall CityLarge CityTotal
Looking at markets ahead of EuropeWhy are they relevant?
Well ahead of Europe in their recoveryWell-developed with many different segmentsMix of domestic and international brandsConsiderable inbound and outbound travel
China: Occupancy 2020
New Zealand: Occupancy 2020
Australia: Occupancy 2020
India: Occupancy 2020
Outlook
It all depends on the restrictions
Q1: demand will be low due to ongoing restrictions
Q2: given successful vaccinations and reduced restrictions… …demand will return in stages with individual leisure returning first …followed by domestic business travel by small and mid-sized companies …strong recovery in domestic markets
Summer could be a bomb?
The period after the summer could be exciting… …with meetings and first signs of international travel
Q&A
Clarion Collection Arcticus, Harstad
Head office Pandox AB (publ) Box 15
SE-101 20 Stockholm Sweden
Visiting address Vasagatan 11 Stockholm Sweden
Tel: +46 8 506 205www.pandox.seOrg.nr. 556030-7885
Forward-looking statements.
This presentation contains forward-looking statements. Such statements are subject to risks and uncertainties as various factors, many of which are beyond the control of Pandox AB (publ), may cause actual developments and results to differ materially from the expectations expressed in this presentation.
Scandic Copenhagen
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Pandox AB published this content on 11 February 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 February 2021 10:16:04 UTC.