Interim Report January - June 2001

Interim Report January - June 2001 · The profit after financial items increased to SEK 373 million (SEK 257 m) · EPS increased to SEK 0.86 (SEK 0.59) after full tax · Equity/assets ratio increased to 25.4 per cent (24.0 %) · 77 properties have been sold for a total of SEK 1,857 million, yielding a profit of SEK 222 million Results The profit after financial items increased to SEK 373 million (SEK 257 m) 1) . EPS after full tax totalled SEK 0.862) (SEK 0.59). Rental income for the period totalled SEK 1,055 million (SEK 1,106 m). The operating surplus before depreciation totalled SEK 629 million (SEK 658 m). The operating profit increased to SEK 742 million (SEK 631 m). The profit includes SEK 222 million (70 m) in profits from the sale of properties. The financial net totalled SEK -369 million (SEK -374 m) including interest grants totalling SEK 4 million (SEK 8 m). Rental income for comparable property holdings has increased by SEK 44 million and property-related costs by SEK 19 million. The operating surplus has thus increased by SEK 25 million (5%) during the first six months of 2001 in comparison with the corresponding period in 2000. Operations Wihlborgs is one of Sweden's larger property companies. The operations are concentrated on the growth regions of Stockholm and Öresund, which collectively account for 93 per cent of the company's total rental income3). The property holding comprises commercial premises and residential accommodation with an annual rental value of SEK 2.1 billion, a total leasable floor area of 2.5 million sq.m. and a book value of SEK 19.1 billion. The market and property holdings 46 per cent, 47 per cent and 7 per cent of the total property holding's rental value are to be found in the Stockholm, Öresund and other regions, respectively. 31 per cent, 47 per cent and 22 per cent of the property holding's rental value comprises Residential Premises, Offices/Shops and Industrial/Hotel Premises, respectively. At the period end, the economic letting level for the Group's property holding was 95 per cent. Broken down by Wihlborgs' market areas, the letting levels in the Stockholm and Öresund regions are 97 per cent and 94 per cent, respectively, and 88 per cent for other properties. Commercial premises The market for commercial premises remains very good in Wihlborgs' principal regions, Stockholm and Öresund, even if the weakening market has become noticeable, above all in central sites in Stockholm. The degree of vacancy for the entire Stockholm region, however, remains unaltered. Residential premises The demand for accommodation remains very high in the Stockholm region and good throughout the Öresund region. This year's rental negotiations in the Stockholm region resulted in approximately 2.0 per cent increase in rents as of 1 January 2001. In Malmö, rents were increased by an average of 1.2 per cent from 1 January 2001. Summary of the property holding as of 30 June 2001 Breakdown by geographic area Region No. Area, Book Rental Econ. Rental Operatin Interes prope Sq.m. value, value, Letti income g t rties SEKm SEKm ng , SEK surplus, grant, 1) 2) 3) level m4) SEK m4) SEK m4) per cent Stockhol 203 1,004,223 9,711 963 97 463 278 2 m Öresund 335 1,285,632 8,202 972 94 467 291 1 Other 38 170,746 1,233 139 88 61 37 - Total 576 2,460,601 19,146 2,074 95 991 606 3 1) Book value includes undeveloped land and project properties with a value of SEK 1,988 million. 2) The Klara Zenit property is included in the book value in the sum of SEK 1,587 million, of which SEK 1,209 million is included in the book value for projects and SEK 378 million in that for investment properties. 3) Rental value is defined as rental income as of 30 June 2001, plus estimated market rent for unoccupied floor area on a full year basis. 4) Rental income, operating surplus and interest grants refer to the period from 1 January 2001 to 30 June 2001 for Wihlborgs' property holding as of 30 June 2001. Investments and sales Investments have totalled SEK 975 million (822), with property acquisitions and investments in existing properties and projects comprising SEK 236 million (338) and SEK 739 million (484), respectively, of this sum. Property sales during the same period amounted to SEK 1,857 million (827). Property acquisitions Six properties were acquired for a total of SEK 236 million, of which SEK 218 million relates to the acquisition of two properties in central Helsingborg. Properties sold A total of 77 properties have been sold for the combined sum of SEK 1,857 million, yielding a profit of SEK 222 million. The biggest sales transactions were the shopping-centre properties comprising Burlöv Center and Arninge Centrum, for SEK 432 million and SEK 220 million respectively, residential properties in Helsingborg for SEK 295 million, residential properties in Norrköping and Linköping for SEK 160 million and sales to housing cooperatives in Stockholm for SEK 359 million. 1) The comparative figures for Profit & Loss Account items refer to values for the period from January to June 2000, whilst those for Balance Sheet items refer to values as of 31 December 2000. 2) For definitions, please see page 13. 3) Refers to rental values on a full year basis, which are defined as rent payable as per 30 June 2001 on a full year basis plus estimated market rental on a full year basis for vacant floor area. ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2001/08/09/20010809BIT00330/bit0001.doc The full report http://www.waymaker.net/bitonline/2001/08/09/20010809BIT00330/bit0001.pdf The full report