Interim Report January-March 2001

Interim Report January - March 2001 · The profit after financial items increased to SEK 134 million (SEK 115 m) · EPS increased to SEK 0.30 (SEK 0.26) after full tax · Equity/assets ratio increased to 24.8 per cent (24.0 %) · 44 properties have been sold for a total of SEK 695 million, yielding a profit of SEK 65 million Results The profit after financial items increased to SEK 134 million (SEK 115 m) 1) . EPS after full tax totalled SEK 0.302) (SEK 0.26). Rental income for the period totalled SEK 543 million (SEK 561 m). The operating surplus before depreciation totalled SEK 313 million (SEK 312 m). The operating profit increased to SEK 322 million (SEK 296 m). The profit includes SEK 65 million (45 m) in profits from the sale of properties. The financial net totalled SEK -188 million (-181) including interest grants totalling SEK 2 million (SEK 4 m). Rental income for comparable property holdings has increased by SEK 29 million and property-related costs by SEK 6 million. The operating surplus has thus increased by SEK 23 million during the first nine 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 92 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 2.2 billion, a total leasable floor area of 2.6 million sq.m. and a book value of SEK 19.7 billion. The market and property holdings 45 per cent, 47 per cent and 8 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, 48 per cent and 21 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 87 per cent for other properties. Commercial premises The market for commercial premises continues strong in Wihlborgs' principal regions, Stockholm and Öresund. The development in the Stockholm region is stronger than that in the Öresund region. There are, however, substantial differences in both rental and demand levels between the various subsidiary markets within the respective regions. Residential premises Demand for residential accommodation in Stockholm is exceptionally high, and is also healthy in the Öresund region. This year's rental negotiations in the Stockholm region resulted in a 2.2 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 31 March 2001 Breakdown by geographic area Region No. Area, Book Rental Econ. Renta Opera Inter prop Sq.m. 6) value, value, Letti l ting est erti SEKm 1) 2) SEKm 3) ng incom surpl grant es5) level e, us, , per SEK SEK SEK cent m4) m4) m4) Stockho 213 1,036,114 9,772 987 97 239 138 1 lm Öresund 342 1,330,596 8,480 1,016 94 244 148 1 Other 53 244 803 1,474 179 87 37 19 - Total 608 2,611,513 19,726 2,182 95 520 305 2 1) Book value includes undeveloped land and project properties with a value of SEK 1,741 million. 2) The Klara Zenit property is included in the book value in the sum of SEK 1,458 million, of which SEK 1,080 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 31 March 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 31 March 2001 for Wihlborgs' property holding as of 31 March 2001. 5) The total number of properties held by Wihlborgs increased by a net of 3 during the period as a result of plan changes within the existing property holding. This increase breaks down as follows: 1 additional property in the Stockholm region and 2 additional properties in the Öresund region. 6) Skeppet 13 with a total area of 3,409 sq.m. became managed property during the first quarter. Reclassification within the existing property holdning has increased the lettable area by 9,823 sq.m. in the Öresund region and reduced the lettable area by 1,875 for other properties. Investments and sales Investments have totalled SEK 515 million (442) during the first quarter, with property acquisitions and investments in existing properties and projects comprising SEK 235 million (312) and SEK 280 million (130), respectively, of this sum. Property sales during the same period amounted to SEK 695 million (572). Property acquisitions Five properties were acquired during the period for a total of SEK 235 million, of which SEK 218 million relates to the acquisition of two properties in central Helsingborg. Properties sold During the first quarter a total of 44 properties have been sold for the combined sum of SEK 695 million, yielding a profit of SEK 65 million. The biggest individual sales transactions comprised residential properties in Helsingborg for SEK 295 million and Arninge Centrum outside Stockholm for SEK 220 million. Summary of acquisitions and sales during the first quarter 2001 1) SEK m Area Sqm No of properties Acquisitions Acquisitions, Q1 Öresund 235 11,866 5 region Total property acquisitions 235 11,866 5 2001 Sales Sales, Q1 Stockholm region 287 33,313 7 Sales, Q1 Öresund region 361 70,050 31 Sales, Q1 Other properties 47 20,296 6 Total property sales 2001 695 123,659 44 1) Please see pages 9-10 for a list of this year's property acquisitions and sales. Investments in existing properties and ongoing projects The first three months' investments in existing properties and projects, comprising land, new construction and renovation, totalled SEK 280 million. This sum included investments in project Klara Zenit in Stockholm, project Postiljonen in Stockholm, project Reykjavik in Stockholm, project Styckjunkaren 3 in Solna and project in Västra Hamnen in Malmö, totalling SEK 77 million, SEK 11 million, SEK 38 million, SEK 14 million and SEK 43 million, respectively. Financial position Wihlborgs' shareholders' equity totalled SEK 5,252 million (SEK 4,934 m) as of 31 March. The equity/assets ratio increased to 24.8 per cent (24.0 per cent).The Group's liquid assets, including unutilised current account overdrafts, totalled SEK 767 million (SEK 629 m) as of 31 March. The loan volume was SEK 14,295 million (SEK 14,478 m) at the period end, with an average interest rate of 5.88 (5.84). The total loan volume includes individual loans for ongoing projects totalling SEK 980 million, interest on which has been booked as an asset. The average fixed interest term for the loans, including the effects of derivative instruments utilised, was 3.5 years (3.3 years) on 31 March. SEK 750 million of the loans totalling SEK 2,758 million subject to interest recalculation in 2001 are covered by interest rate caps with durations of between 1 and 5 years. SEK 400 million of total interest rate caps of SEK 750 million have been taken out at 4 per cent and SEK 350 million at 6 per cent. The remainder of the loans maturing in 2001, i.e. SEK 2,008 million, have an average fixed interest term of 150 days. Summary of the Group's loan structure , as of 31 March 2001 SEK m Average Percentage interest % share, % 2001 2,758 5.46 19 2002 2,831 5.00 20 2003 2,158 5.91 15 2004 1,187 5.88 8 2005 1,272 6.68 9 2006 516 7.37 4 2007 350 5.99 2 2008 402 5.87 3 >2008 2,065 6.33 14 Current account 24 5.78 1 Debenture loan 732 7.02 5 Total 14,295 5.88 100 Events after the period end Property sales Wihlborgs has sold the shopping centre Tågarp 15:4, Burlöv Center, in Skåne (the Öresund region). The selling of Burlöv Center is in line with the strategy to decrease in property with mainly retail premises. Sales was in company form at a property value of SEK 432 million . The profit amounts to SEK 70 million which will be included in the result for Q2, 2001. Burlöv Center comprises approximately 35,000 sq.m. retail premises, with an annual rental value of SEK 49 million. The new owner, Schroder European Property fund, took possession of the property in April 2001. The Annual General Meeting of 5 April 2001 The Annual General Meeting approved the proposed dividend to shareholders of SEK 0.70 per share, in total SEK 218 million. Current board members Lennart Ahlgren, Göte Dahlin, Kerstin Fredriksson, Sven- Åke Johansson, Bengt Madsen, Erik Paulsson, Jan Sjölin and Maths O. Sundqvist were re-elected. The meeting approved the fee to the board of SEK 700,000 (SEK 513,000). The meeting resolved to set up a nominations committee, and selected Hans Olsson, Sten Kottmeier, Bob Persson and Sven-Åke Johansson as members. The meeting resolved to set up a profit- sharing scheme for the benefit of the employees within the Wihlborgs group in accordance with the board's proposal. The meeting resolved to sell the shares in Malmö Slagthus AB and Malmö Börshus Produktion AB in accordance with the board's proposal. At a statutory Board meeting in conjunction with the Annual General Meeting, Sven-Åke Johansson was re- elected Chairman of the board and Bengt Madsen was re-elected Vice Chairman. New ownership picture at Wihlborgs Wihlborgs' former main owner Bergaliden AB sold its entire holdings of approx. 95 million shares in Wihlborgs on April 19th 2001. The shares were acquired by a number of Swedish and foreign investors. Following Bergaliden's share sale, Investment AB Öresund, TMT One AB, Mats Qviberg and family, and Jonas Wahlström through a company, together own 10,7 per cent of the shares in Wihlborgs. New head of communications Mats Berg, 42, has been appointed Communications Manager at Wihlborgs. He comes directly from the AssiDomän Group. Forecast for full year 2001 The stable development in the company's main markets is expected to continue during 2001. The profit after financial items for 2001 will exceed the result for 2000. Financial report dates, 2001 Interim report January-June 2001 9 August 2001 Interim report January-September 2001 1 November 2001 This Interim Report has not been subject to review by the company's Auditors. Malmö, 2 May 2001 Wihlborgs Fastigheter AB (publ.) Erik Paulsson President For additional information, please contact: Erik Paulsson, President, tel: +46 8 623 69 55 or +46 70 595 02 00 (mobile) Olle Knaust, Financial Director, tel: +46 8 623 69 04 or +46 70 557 58 01 (mobile) Mats Berg, Communications Manager, tel: +46 8 623 67 45 or +46 709 18 75 84 (mobile) This is Wihlborgs Wihlborgs Fastigheter AB (publ.) is one of Sweden's largest listed property companies, holding properties with a book value of approximately SEK 19.7 billion. The property holding is concentrated on the Stockholm and Öresund regions, and has an annual rental value of SEK 2.2 billion and a leasable floor area of 2.6 million. The company has offices in Malmö, Stockholm, Copenhagen, Helsingborg and Nyköping. The Wihlborgs share is quoted on the A-list of the OM Stockholm Stock Exchange. Wihlborgs Fastigheter AB (publ.), Box 97, S-201 20 Malmö, Sweden Tel: +46 40 20 09 00 ? Fax: +46 40 97 71 89 1) The comparative figures for Profit & Loss Account items refer to values for the period from January to March 2000, whilst those for Balance Sheet items refer to values as of 31 December 2000. 2) For definitions, please see page 11. 3) Refers to rental values on a full year basis, which are defined as rent payable as per 31 March 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 BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2001/05/02/20010502BIT00880/bit0003.doc The full report http://www.bit.se/bitonline/2001/05/02/20010502BIT00880/bit0003.pdf The full report