Mofast (MOFAST) Stockholm Corporate Finance Conference 2025 summary

Company overview and strategy

• Operates 67 properties, mainly in Stockholm/Mälardalen, with a balance sheet just under 3 billion SEK and a focus on both residential and care properties.

• Strategic shift from growth to profitability, prioritizing returns for existing shareholders and aiming to distribute 30-50% of management results.

• Maintains a loan-to-value ratio below 50% and targets a 2.0 interest coverage ratio within 1-2 quarters.

• Commercial tenants are primarily municipalities and major care operators, with no single contract exceeding 1.5% of revenue.

• Average contract length has increased from four to six years, with a goal to extend further.

Investment and operational focus

• Investments are concentrated in care properties, targeting a 15% return, while ROT (renovation) projects in residentials are paused due to lower returns and higher vacancy risk.

• Residential investments are limited, with a focus on converting apartments to condominiums for premium sales.

• Vacancy rates are low: 4% in residentials (due to ongoing conversions) and 96% in community properties, expected to reach 99% after project completions.

• Half of loans are interest-hedged, and the company only uses bank loans, avoiding complex debt instruments.

• Recent property sales, mainly to municipalities and through conversions, have generated significant cash and improved financial metrics.

Financial performance and shareholder returns

• Trades at a substantial discount (around 58%) to net asset value, reflecting its small size and limited market visibility.

• Management highlights improved leverage and interest coverage, with a simple and transparent financial structure.

• Plans to distribute 3.5-4% dividend yield, among the highest in the sector, with potential for share buybacks under consideration.

• Ongoing conversion of residentials to condominiums is expected to further lower leverage and boost cash reserves.

• Strategic flexibility remains, with options to reinvest, distribute cash, or consider buybacks depending on market conditions.