Interim report January – June 2014

The period (January – June 2014)*

  • Rental income amounted to SEK 86.9 m (n.a.)
  • Net operating income amounted to SEK 37.6 m (n.a.)
  • Profit after tax amounted to SEK 81.7 m (n.a.)
  • Earnings per share amounted to SEK 1.82 (n.a.)

Second quarter (April – June 2014)*

  • Rental income amounted to SEK 65.7 m (n.a.)
  • Net operating income amounted to SEK 30.1 m (n.a.)
  • Profit after tax amounted to SEK 55.4 m (n.a.)
  • Earnings per share amounted to SEK 1.24 (n.a.)

*The properties were acquired on February 27, 2014


Significant events during the quarter

  • D. Carnegie & Co:s offering of shares was oversubscribed – trading on NASDAQ OMX First North began on April 9
  • On April 28, D. Carnegie & Co acquired two properties from HSB Stockholm
  • On May 12 it was announced that the entire overallotment option in conjunction with the company’s listing had been exercised – adding approximately SEK 90 m to the company
  • On June 19, D. Carnegie & Co came to an agreement to acquire a property portfolio in Sollentuna

Significant events after the quarter

  • On July 2, D. Carnegie & Co held an EGM in connection with the previously announced acquisition of Hyresbostäder i Sverige II AB:s (“HBS II) property portfolio
  • On July 4, D. Carnegie & Co completed the transaction with HBS II – making D. Carnegie the largest listed residential property company in Sweden
  • On July 18, changes to the lock-up agreement for shares in D. Carnegie & Co was announced


Comment from the CEO

D. Carnegie & Co – a focused residential property company with its aim set on continued growth

The first half-year of 2014 has been very eventful for D. Carnegie & Co. The company was given a new operational direction after acquisition of, and contractual agreements to acquire, properties valued at a total of SEK 10 billion, a new share issue was completed and the company was listed on NASDAQ OMX First North.

On February 27 we acquired a property portfolio valued at approximately SEK 3 billion from Stendörren Bostäder AB. This report thus only includes four months (March-June) with operational activities. In connection with the acquisition, we became a company with a clear focus on housing and an attractive property portfolio. The sights are from the start set on acquisitions of new properties, but also the refinement of the existing portfolio and the development of interesting projects – the three cornerstones of our business. The properties are strategically located in the so-called Million Programme areas, and demand for these homes has increased in step with the housing shortage. We feel a strong commitment to contribute to a favourable development of these areas, while we of course also see the commercial potential.

In March, we took the next step when the board approved a listing of the company’s shares on NASDAQ OMX First North, and on April 9 this year, trading began. The share issue completed in connection with the listing raised a total of SEK 690 million before transaction costs, including the overallotment option. Investor interest was very high and the offer was oversubscribed several times in the process giving us 2,700 new shareholders. We are of course grateful for this confidence shown, and as we have many exciting opportunities ahead, we are confident that we can give good returns to our shareholders.

On June 1 we signed a deal to acquire 9 300 apartments from a Norwegian-Swedish fund structure that makes D. Carnegie & Co the largest listed purely residential real estate company in Sweden. The properties are strategically placed and complements our current portfolio. The deal included Graflunds, an organisation with 50 years experience of property management, which will be responsible for the management of all of D. Carnegies properties. The deal was only completed on July 4 and will therefore not affect our reports until the third quarter of 2014. The deal also means that the company substantially exceeded its growth target in a short amount of time.

ULF NILSSON

CEO of D. Carnegie & Co

For more information, please contact:

Ulf Nilsson, VD +46 (0)8 121 317 00

Per-Axel Sundström, CFO +46 (0)8 121 317 00

About Us

About D. Carnegie & Co D. Carnegie & Co is a property company focusing on residential properties in the Greater Stockholm region and other growth areas. The company’s business concept is to own property portfolios slated for a gradual renovation of apartments in conjunction with the natural turnover of tenants. This can take place quickly and cost-efficiently thanks to extensive experience from the Bosystem renovation method which, among other things, means that no evacuation needs to take place. In addition to this, the company creates value through the development of building rights in existing portfolios. The market value of the company’s properties amounted to SEK 15,887 million as of September 30 2016. The total annual rental value amounted to SEK 1,366 million as of September 30 2016. The economic occupancy rate is high – vacancies are virtually non-existent. D. Carnegie & Co is listed on Nasdaq Stockholm.

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