Interim Report January - September 2001

Interim Report January - September 2001 * Profit after full tax amounted to SEK 2,002 m. (754), which corresponds to SEK 31.57 (10.36) per share. * On September 30, 2001, estimated net asset value per share was SEK 222 (Dec 31, 2000: 236) and SEK 202 (Dec 31, 2000: 205) after deferred tax. The corresponding values on November 12, 2001 were SEK 235 and SEK 212, respectively. * Real estate operations reported profit of SEK 318 m. (221) before depreciation, an increase of 44%. SALES AND PROFIT The Group's net sales amounted to SEK 2,312 m. (1,196). Profit after financial items amounted to SEK 1,935 m. (808). Profit after full tax was SEK 2,002 m. (754), which corresponds to SEK 31.57 (10.36) per share. Net sales and profit include an extraordinary dividend of SEK 1,307 m. from Holmen. REAL ESTATE Operating profit for Lundbergs' Real Estate business area rose to SEK 290 m. (218). As of January 1, 2001, depreciation of the Group's completed properties complies with the Swedish Financial Accounting Standards Council's Recommendation RR12 (see Changed accounting principles on page 5). Such depreciation amounted to SEK 22 m. In connection with this change, property fixtures and fittings were subject to excess depreciation in an amount of SEK 4 m. Operating profit before depreciation rose by 44% to SEK 318 m. (221) during the period and by 46% to SEK 117 m. (80) during the third quarter. The increase was attributable to higher rental revenues and reduced costs for maintenance and tenant-oriented property improvements. For seasonal reasons, the fourth quarter will be charged with increased costs, mainly for heating. Favorable rental-revenue and vacancy-rate trends were noted for both housing and commercial premises during the first nine months of 2001. Housing accounted for 49% and commercial premises, etc. for 51% of total rental revenues, which increased to SEK 584 m. (550). The overall vacancy rate during the period corresponded to 2.4% of rental revenues (2000 average: 3.9). The vacancy rate for housing was 1.0% (2000 average: 1.8), while the vacancy rate for commercial premises was 3.7% (2000 average: 5.8). The average vacancy rate during the third quarter was 1.9%, comprising a vacancy rate of 0.9% for housing and a rate of 2.8% for commercial premises. The overall vacancy rate in October 2001 was 2.0%, whereby the rate for housing was 0.6% and that for commercial premises was 3.3%. In total, properties were sold for SEK 5 m. (15), generating pretax gains of SEK 0 m. (7). Property costs before depreciation decreased to SEK 251 m. (315). The decrease was attributable to lower maintenance and tenant-oriented property improvement costs, which totaled SEK 79 m. (142). SEK 13 m. (64) was invested in wholly and partly owned properties during the period. The Group's completed properties (excluding sold properties), which have a book value of SEK 2,672 m. (2,675), generated an annualized yield (operating net in relation to book value) of 18% (13). The book value of properties held for future development was SEK 139 m. (164). ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2001/11/13/20011113BIT00440/bit0001.doc The Full Report http://www.waymaker.net/bitonline/2001/11/13/20011113BIT00440/bit0001.pdf The Full Report

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