Thank you, Judith. Welcome to this Logistea presentation. We'll present the full year report for 2021. Here to present is myself, Niklas Zuckerman. I'm the CEO of the company. By my side we got Philip Löfgren, who is the CFO of the company. As Judith said, we'll take any questions afterwards. During 2021, we have redefined the company, and we're now a property company with full focus on logistics, warehouse, and light industrial properties. We have during the year sold and distributed the fashion business. We have changed name of the company from Odd Molly to Logistea. We got a new management in place, and with significant growth ambitions. The business model in short is that we should be very active on the transaction market and do good deals in all cycles.
We will also develop new properties on our own land, and we will be an active asset manager to make sure we'll follow and support our tenants when they grow their business. Some highlights from the report that we just published. Property value has increased from some SEK 900 million last year to almost SEK 3 billion as of today. The earnings have increased to SEK 317 million, and that represents an increase of 600% from last year. The net asset value has increased, and the earnings per share has more than tripled since last year. Spending some time on our current property portfolio, now consisting of 41 properties. It comprises 301,000 sq m of investment properties and 44,000 sq m of ongoing projects. The projects are 100% leased, and they will be finalized later this year.
In addition, we have some almost 240,000 sq m of building rights, and those are the ones marked in orange on this slide. As I said, we will be very active on the transaction market, and we have only in Q4 acquired properties at a value of SEK 724 million. Looking at the current valuation yield, which is 6%, and that represent a price per square meter of less than SEK 7,000. Some examples of the investment properties, and the investment properties are income-producing properties, i.e. not the project properties. The first one is a portfolio that we bought in October of last year. It's 100,000 sq m located in Karlskoga and Kristinehamn.
Fully let with six years remaining lease term, and we bought that one at a yield of 7.9%. The second one is in Viared, and as you all know, Viared is the best logistics location in Borås. Slightly shorter leases, and here we paid 6.7% yield. Thirdly, that's our latest addition that we announced the other week. It's a property comprising 10,500 sq m, fully leased to Arom-Dekor on a 15-year triple net lease, and here we paid 6% yield. A few words on the project properties. The first one is actually our first property in Kristianstad. It's a property where we made some extension. We are extending 2,500 sq m, and at the same time, we're installing solar cells on the roof.
Fully leased to tenant GDL on a 10-year lease. Second one is also an extension in Viared, Borås. We're making the extension for the tenant Cellbes. They have signed a 12-year lease, and completion is expected just before the summer of this year. Thirdly is in Vaggeryd. Ongoing production of our first phase there, which is roughly 13,000 sq m. In addition on this site, we have approximately 160,000 sq m of building rights. Yield on cost on these investments are, as you can see, between 7% and +8%. As announced just before Christmas, we have signed an LOI with a battery producer in Svenljunga Kommun outside of Borås. That LOI is for 380,000 sq m.
The same day, we signed an exclusivity agreement with the municipality of Svenljunga for roughly 1 million sq m. The property we just bought is the one, so to say, closest on this picture, and the land for the battery factory is basically most of the forest that you see on this picture. What has happened since Christmas is that the zoning plan process has started, and we'll obviously update the market with any updates and progress on this transaction. A few words on the market sentiment. As you all know, we've seen an increased e-commerce demand partly driven by the pandemic, but we foresee that in demand will continue. That has obviously resulted in increased demand for warehouse space.
Other important trends that we see is that many companies are focusing to improve their supply chains, i.e., there's a tendency to move production closer to their home markets. This will favor our strategy which includes light industrial properties. We believe we can do a lot of good deals there. On the rental side, forecasts are stable overall. We will see and have seen rising rents in the better locations. On looking at the yields, we have seen a continued yield compression now for many years. That yield compression is expected to continue even the coming years. As you have seen, we've also this morning presented an updated strategy and goals, and we'll highlight those briefly on the coming slides.
The first one is our growth target, which is to achieve SEK 15 billion in property value by the end of 2024, i.e., a bit shorter than the coming three years. It would be primarily in Sweden, but we will consider the rest of Nordic if good deals arise. As I said before, the growth will be driven by new acquisitions, developments on owned land and active management of our existing portfolio. Some operational targets that were presented this morning. Property value we just discussed. The next one is the new developments on owned land, so to say, should be at least 25,000 sq m per annum. The third one is the green financing should be at least 50% by end of 2026. And here we are at 30% already.
We should also by 2026 have digitalized 50% of our property portfolio. This is a very important task in order to maximize the property management and decrease the energy consumption. Looking at the financial targets, profit from property management per share should increase at least 10% per annum. The NAV per share should increase by 12% per year. The long-term LTV should not exceed 60%, and we are today at 56%. Finally, the ICT should be at least 1.8. We also presented this morning new sustainability targets, and those are in line with the UN Global Compact and the Agenda 2030. In order to minimize our environmental impact, the target is to certify all new developments according to BREEAM. We discussed the green financing on the previous slide.
We should also say that we're very proud sponsors of Grunden Bois . Finally, a slide on the dividend. Since we are a growing company, the board has decided to prioritize growth the coming years. Their proposal to the annual general meeting is that no dividend will be paid for 2021. Handing over to Philip for some more financial numbers.
Thank you, Niklas. I will now present the financials in brief. As you can see, Logistea has had strong earnings for both the full year and from the quarter, and that has mainly to do with a larger property portfolio. The property value has increased a lot as a result by both yield compression and development in the project portfolio. Divestment of the fashion business has affected the net profit and is no longer a part of the group financials from 2022. This graph visualize our strong earnings capacity going forward. It presents the group's earnings capacity on a 12-month rolling basis. As you can see, we've had a significant increase from last year's figure, both with the rental income, the net operating income, and the profit from property management. At Logistea, we like long leases and triple net agreements.
We have currently a WALT of 6.2 years, and above 100 different tenants in the portfolio. Up on the right-hand corner, you can see a selection of the current tenant base. During 2021, we've invested a lot in both acquisitions and in project development, whereof Vaggeryd Logistikpark and the newly built in Borås for Cellbes are the biggest ones. Our operating cash flow improved, which has mainly to do with a larger property portfolio. In October, we diversified our debt portfolio by issuing a green senior unsecured bond of SEK 500 million under a framework of total SEK 1 billion Swedish. We have continued using our share as a form of payment in property acquisitions, which has had a positive and solid impact on the key ratios.
Summing up briefly to highlight our attractive financial profile, we have a growing top line with a solid tenant base. We have long WALT, and a high percentage of our leases are triple net leases. We are growing with healthy key figures, as Niklas mentioned earlier in the presentation. At last, we have a strong base of owners, diversified financing profile, and a strong management. Back to you, Niklas, with some concluding remarks.
Thank you. Adding on from the management team and the board, here is the management team and the board. Latest additions are Maléne Broman, who will Head up the Property Management here at Logistea, and Maria Kruse, who will be Head of Sustainability and Investor Relations. Our board at the bottom, and you know, very active experienced board, and together with the management, eager to drive the business forward. To summarize, we have today presented strong and improved financial figures. We strongly believe in the property segment with the warehouse logistics and light industrial. There is an increased demand for modern and sustainable premises. We have a market-leading transaction team.
We've got land to build on, and we got an owner base prepared to take the next steps in the Logistea journey. Thank you. Any questions, please?
If you do wish to ask a question, please press zero and one on your telephone keypad. If you wish to withdraw your question, you may do so by pressing zero-two to cancel. There will be a brief pause while questions are being registered. As a short reminder, if you wish to ask a question, please press zero and one on your telephone keypad.
Judith, we got one or two questions over email if you wanna take those.
Mm-hmm. Yeah. No one's in the line f or registering.
Okay. Let's take the first one that come in here. Can you elaborate on the yield compression going forward?
Yes, we can. What we're seeing basically throughout Europe and the rest of the world is that logistics has become probably together with residential the most core segment of all. There's a huge demand from the core investors to purchase modern and core logistics properties. We foresee that will continue. We also foresee that will be the case for the light industrial properties to come. We're buying now at, you know, good yields and very good yields compared to the core logistics properties. It wouldn't surprise us if we'll see more demand for the light industrial the coming years.
I've got another question if we don't have anyone on the line. What kind of transactions are you currently considering?
What we're mainly doing right now is that we're buying slightly smaller properties in the range of, say, SEK 50 million-SEK 150 million. Most of them are very modern, leased to very stable tenants. We see that the composition or the competition area is not as fierce as for the larger lot sizes. That's what we're doing right now. However, we will consider all, you know, all sizes. As we presented this morning with the ambitious growth plans, we will need to do, you know, both smaller and larger portfolios. For the moment, we see the best deals to be done in the slightly smaller segment.
That also said, as we mentioned, if there are deals or portfolios that could fit into our strategy in the other Nordic countries, we'll obviously look into that as well. But it needs to be a good fit, so to say. But we're confident we'll find those over time as well.
If we don't have anyone on the line, I can read a third question that pops in here. Can you also elaborate a bit around your geographic concentration considering your latest LOI in Enköping and the rest of the Nordics?
Yes, the Enköping property as such is a great deal for us. We get a you know top of the line logistics or warehouse property, and at the same time we get a new owner in the share. Enköping we like, we will consider, I would say, many parts of the Swedish markets. We got a high concentration to Gothenburg and Enköping area today, but we will consider many parts. It has a lot to do with obviously the micro location, but also we need to feel confident that the tenants are doing well. And if the tenants are doing well, we would be happy to invest with them.
I think that's one of the reason why we need to grow the business is basically to have a larger tenant base because with tenants there are new deals to be done in terms of extensions, et cetera. We'll be flexible very much looking at the micro location and the financial stability of the tenants.
I've got a new question here. Rental uplift potential. You've got long WALT of +6 years. Could you elaborate on renegotiations over the next two years and or potential uplift you expect in the portfolio and market?
Yeah. We with the long leases, and we like the long leases, as Philip said in the presentation, the rental uplift in the near future would mainly be driven by CPI, i.e., the leases are indexed. There is not a huge amount of leases that should be renegotiated in the coming years. I think where we rather will hopefully do a lot of good deals is, you know, growing with the tenants when they want to expand the property or when they want to make improvements or additions, et cetera. Here we can improve our returns.
We are, as it looks right now and how we will be looking in the future, we are not the property owner that should or where you should expect a lot of rental growth apart from CPI in the existing stock. We like the long leases, so to say. It's our business model. On top of that, it's very important that we sign as many leases as possible on triple net agreements so that our risk on the OpEx side is limited.
Got next one here. Could you clarify on the project development potential, investment yield on cost, and revaluation potential?
The yield on cost is basically, as it says, that's the net income on the project cost. We are presenting in the report, we have split the uplift on property value between existing properties and developments. In general, one could say the developments we're undertaking, those will obviously be top of the line modern properties and looking at the graph from colleagues in these presentations, those type of properties should be valued at in between, you know, or ±4%.
If we're building or have a yield on cost of between 7% and 8%, obviously, these are very attractive investments. It's an important segment for us that we'll do our own investments on our own land. That said, we need to buy land, and we need to make sure that we have land available once we find the tenants.
Mm-hmm. That was on the project development. Another question on the investment side. Can you elaborate on the value growth potential related to acquisitions, i.e., off-market deals, portfolios?
In general, one could say we would like to do off-market deals, but it's also we want to be seen as the buyer in the market that is, you know, reputable and promising what we deliver on or we deliver on what we have said. Therefore, we don't have a problem if it's a broker in between. We should be the first call, so to say, when someone is selling this type of property. In general, we obviously believe that we're buying properties at values that are better suited in the portfolio and that we can increase the valuation on the properties that we're buying.
Mm-hmm
Hope that answered the question.
Looking at the LOI we signed in the property in Enköping, which is a bit lower yield on that one compared to the 6%. What do you think about the trends in the market yield-wise?
We have now seen, beginning of this year and then end of last year, we have seen properties traded in, for instance, Borås Viared at 3.6%. There are examples in Rosersberg. We're not in Rosersberg, I would say, but yield set at below 3.5%. It wouldn't surprise us if that yield compression will continue. We bought the property in Enköping at 4.75%-ish%. We believe that that's a really good investment for us. As I said, we got a new active owner on board, so it's basically a win-win situation for everyone. We can and we will buy modern properties as well in good location, but it needs to sort of fit our strategy.
Maybe not just the property, but that we get something else.
Another question. Do you expect increased interest rates as a threat going forward considering your relatively low average fixed interest rate maturity of 0.5 years? That one is for me. We've started looking into a different kind of products for our loans, interest swaps, and other tools. Yes, we are on top of that subject. We don't see it as a bigger threat today.
That's it, for us at least. Judith, if you don't have any other questions on your end.
No, I have no questions.
I think we have answered all the questions that came via email, at least so far. If there are any other questions, just send an email to Philip, and we'll make sure we'll answer those as well.