Wallenstam AB (publ) Interim report January 1–June 30, 2017: Record number of apartments under construction

CEO Hans Wallenstam and CFO and Head of Investor Relations Susann Linde comments on the interim report at www.wallenstam.se/filmsandpresentations. The film will be released by 08.30 (CET) at the latest.

A conference call with Susann Linde, CFO and Head of Investor Relations, will take place at 09.30 (CET) at www.financialhearings.com. The presentation is available at www.wallenstam.se/filmsandpresentations.

JANUARY 1–JUNE 30, 2017

  • – The growth rate in net asset value, excluding dividends and repurchases, on a rolling full-year basis was 21.7 percent.
  • – Profit before tax amounted to SEK 1,818 million (1,663) and profit after tax amounted to SEK 1,447 million (1,325), corresponding to SEK 4.4 per share (4.0).
  • – Income from property management increased by about 12 percent and amounted to SEK 391 million (350).
  • – Unrealized changes in value of investment properties amounted to SEK 1,638 million (1,615).
  • – Rental income increased by 5 percent and amounted to SEK 829 million (789).
  • – Properties and apartments were sold with a value of SEK 603 million (783), generating a realized profit of SEK 48 million (109).
  • – Construction of properties amounted to SEK 1,179 million (1,198).
  • – On closing day, we had 2,155 apartments under construction.
  • – An impairment loss of SEK 300 million was recognized in respect of wind power investments.

APRIL 1–JUNE 30, 2017

  • – Profit before tax amounted to SEK 1,168 million (1,312) and profit after tax amounted to SEK 907 million (1,043), corresponding to SEK 2.8 per share (3.2).
  • – Income from property management increased by about 9 percent and amounted to SEK 200 million (184).
  • – Unrealized changes in value of investment properties amounted to SEK 1,269 million (1,215).
  • – Rental income increased by 5 percent and amounted to SEK 415 million (397).
  • – An impairment loss of SEK 300 million was recognized in respect of wind power investments.

Comment from Hans Wallenstam, CEO

“With strong letting and management operations as well as cost-efficient new construction, I can once again present an improved result. Income from property management increased by about 12 percent during the first half of 2017 and by about 9 percent in the second quarter. The growth rate in net asset value on a rolling full-year basis was about 22 percent.”

“We have the right strategic property holdings where we have divested properties with lower growth and acquired and cost-efficiently constructed new buildings with higher growth – this is generating increased profits.”

“We are concentrating our investments in cost-efficient construction projects where we are managing the entire process ourselves from start to finish. On closing day, we had 2,155 apartments under construction, which is a record number. We are following the plan for our new construction work, and the organization is well prepared to start construction projects as soon as we obtain a building permit.”

For the complete report, please refer to the attached PDF.

This is information that Wallenstam is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact persons set out below, at 08:00 CET on August 10, 2017 .

For further information:
Susann Linde, CFO and Head of Investor Relations Wallenstam AB (publ) tel. 46 31 20 00 00 or 46 705 17 11 34
Elisabeth Vansvik, Communications Director Wallenstam AB (publ) tel. 46 31 20 00 00 or 46 705 17 11 38

www.wallenstam.se

Wallenstam is a developing property company that manages, builds and develops properties for sustainable living and enterprise in Gothenburg and Stockholm. The property holding is valued at around SEK 39 billion and the customer base consists of around 7,600 households and 1,000 enterprises. The total lettable area is around 1 million sq m. Wallenstam is self-sufficient in renewable energy through the company Svensk NaturEnergi . The company’s B shares have been listed on Nasdaq Stockholm since 1984 .

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About Us

Wallenstam was established in 1944 and is a dedicated property company with about 300 properties in the three major urban areas Gothenburg, Stockholm and Helsingborg. The focus of the Group’s portfolio is residential and commercial properties in Göteborg. The Group’s rental income is more than SEK 1 billion and the value of its property portfolio is just under SEK 13 billion. The Group’s Series B shares have been listed on the Stockholm Stock Exchange since 1984.