Interim Report January - September 1999

Interim Report January - September 1999 * The profit after financial items increased by 40% to SEK 364 million (SEK 261 m) * EPS increased by 54% to SEK 0.83 (SEK 0.54) after full tax. * Properties have been sold for a total of SEK 1,071 million between January and September, yielding a profit of SEK 39 million (SEK 13 m). * The forecast profit after net financial items for 1999 as a whole is raised from in excess of SEK 400 million to approximately SEK 470 million. * At the Annual General Meeting, the Board will propose that a dividend of SEK 0.55 (SEK 0.30) per share be paid for the 1999 financial year. Results The profit after financial items increased to SEK 363.9 million (SEK 260.7 1 m) . EPS after full tax, including profits on the sale of properties, totalled 2) SEK 0.83 (SEK 0.54). The improvement in the profit is primarily due to lower interest expenses, an increase in profit on the sale of properties and lower property costs. Rental income for the period totalled SEK 1,635.2 million (SEK 1,656.3 m). The operating surplus before depreciation totalled SEK 1,006.2 million (SEK 1,006.9 m). The operating profit was SEK 877.8 million (SEK 835.0 m). The profit includes a profit/loss on the sale of properties of SEK 39.4 million (SEK 13.2 m), and interest grants totalling SEK 34.8 million (SEK 43.9 m). The operating surplus for comparable property holdings has during the first 9 months of 1999 increased by SEK 48 million in comparison with the corresponding period in 1998. 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 88 % of the company's total rental income. The property holding comprises commercial premises and residential accommodation with an annual rental value of SEK 2.2 billion, a total leasable floor area of 3 million m2 and a book value of SEK 20.4 billion. The market and property holdings 43%, 45% and 12% of the total property holding's rental value are to be found in the Stockholm, Öresund and other regions, respectively. 36%, 40% and 24% of the property holding's rental value comprises Residential Premises, Offices/Shops and Industryal/Hotel Premises, respectively. At the period end, the economic letting level for the Group's property holding was 94%. Broken down by Wihlborgs' market areas, the letting levels in the Stockholm and Öresund regions are 97% and 92%, respectively, and 89% for other properties. The rental market remains strong within Wilhborgs' primary markets, namely the Stockholm and Öresund regions. The commercial property rental market in the Stockholm region was characterised in the first 3 quarters of this year by a high level of demand for all types of premises throughout the region. The commercial premises market is also showing an upward trend in the Öresund region, with successively falling vacancy levels and higher rental levels. Demand for residential premises in the Stockholm region is extremely high and vacancies in Wihlborgs' housing holdings are virtually non-existent. Rental levels have remained largely unchanged in the first nine months of the year, in line with the trend in the public housing sector. Rental levels will, however, be raised by an average of 9 % as of the fourth quarter of 1999 for one third of Wihlborgs' apartment holdings in the Stockholm region in an 1 Fastighetsaktiebolaget Storheden i Stockholm is included in the Wihlborgs accounts as of 1 July 1998. The comparative figures in respect of Profit & Loss items up to and including Profit after financial items, are a pro forma combination of the results for Wilhborgs and Storheden for the period from January-September 1998. The comparative figures for the EPS refer to the Wihlborgs Group, as of 30 September 1998. The comparative figures for Balance Sheet items refer to the values as of 31 December 1998. 2) For definitions, please see page 12. adjustment of rents in previously renovated residential areas. On a yearly basis, this will mean an increase in rental revenues of SEK 11 million. Residential demand has increased in the Öresund region during the period. Vacancies in Wihlborgs' holdings of residential premises in Helsingborg are in extremely short supply, whilst in Malmö, the vacancy level for the Group's residential premises has gradually fallen over the period as a result of increased letting levels and the sale of properties. Residential rental levels in Malmö have increased by an average of 2% during the first three quarters, in line with the trend in the public housing sector. ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1999/11/04/19991104BIT00820/bit0001.doc The full report http://www.bit.se/bitonline/1999/11/04/19991104BIT00820/bit0002.pdf The full report