Interim Report January-September 2001

Interim Report January - September 2001 · The profit after financial items increased to SEK 537 million (SEK 406 m) · EPS increased to SEK 1.22 (SEK 0.93) after full tax · Equity/assets ratio increased to 26.2 per cent (24.0) · 94 properties have been sold for a total of SEK 2,293 million, yielding a profit of SEK 286 million Results The profit after financial items increased to SEK 537 million (SEK 406 m) 1) . EPS after full tax totalled SEK 1.222) (SEK 0.93). Rental income for the period totalled SEK 1,552 million (SEK 1,665 m). The operating surplus before depreciation totalled SEK 956 million (SEK 1,025 m). The operating profit increased to SEK 1,077 million (SEK 976 m). The profit includes SEK 286 million (101 m) in profits from the sale of properties. The financial net totalled SEK -540 million (SEK -570 m) including interest grants totalling SEK 5 million (SEK 11 m). Rental income for comparable property holdings has increased by SEK 57 million and property-related costs by SEK 18 million. The operating surplus has thus increased by SEK 39 million (5%) 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 95 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 2.4 million sq.m. and a book value of SEK 19.2 billion. The market and property holdings 47 per cent, 47 per cent and 6 per cent of the total property holding's rental value are to be found in the Stockholm, Öresund and other regions, respectively. 30 per cent, 47 per cent and 23 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 89 per cent for other properties. Commercial premises The market for commercial premises is still stable, with a good level of demand in Wihlborgs' main markets, Stockholm and Öresund, even though a certain weakening trend has been discernible. For Wihlborgs' total property stock the degree of vacancy is unchanged. During the third quarter renegotiated and new contracts have on the whole been signed at the same levels as earlier in the year. Residential premises The demand for accommodation is very high in the Stockholm region and good in the entire Öresund region. Sales of properties to housing cooperatives in the Stockholm suburbs continue. During the third quarter six properties were sold in Nacka for SEK 206 million at a profit of SEK 30 million. Summary of the property holding as of 30 September 2001 Breakdown by geographic area Region No. Area, Book Renta Econ. Rental Operating Interes proper Sq.m. value, l Letting income, surplus, t ties SEKm1) value level SEK m4) SEK m4) grant, 2) , per SEK m4) SEKm3 cent ) Stockh 201 990,132 9,898 966 97 693 429 4 olm Öresun 328 1,281,999 8,216 975 94 699 449 1 d Other 33 151,108 1,059 127 89 85 43 - Total 562 2,423,239 19,173 2,068 95 1,477 921 5 1) Book value includes undeveloped land and project properties with a value of SEK 2,110 million. 2) The Klara Zenit property is included in the book value in the sum of SEK 1,693 million, of which SEK 1,315 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 September 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 September 2001 for Wihlborgs' property holding as of 30 September 2001. Investments and sales Investments have totalled SEK 1,353 million (1,372), with property acquisitions and investments in existing properties and projects comprising SEK 336 million (648) and SEK 1,017 million (724), respectively, of this sum. Property sales during the same period amounted to SEK 2,293 million (1,164). Property acquisitions Seven properties were acquired for a total of SEK 336 million, of which SEK 100 million relates to the acquisition of one property in central Stockholm. Properties sold A total of 94 properties have been sold for the combined sum of SEK 2,293 million, yielding a profit of SEK 286 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 565 million. Summary of acquisitions and sales January-September 2001 1) SEK m Area Sqm No of properties Acquisitions Acquisitions Q1, Öresund region 235 11,866 5 Acquisitions Q2, Other properties 1 1,101 1 Acquisitions Q3, Stockholm region 100 2,374 1 Total property acquisitions 2001 336 15,341 7 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 Sales Q2, Stockholm region 359 31,891 10 Sales Q2, Öresund region 552 44,964 7 Sales Q2, Other properties 251 75,158 16 Sales Q3, Stockholm region 206 21,611 6 Sales Q3, Öresund region 75 13,918 6 Sales Q3, Other properties 155 20,346 5 Total property sales 2001 2,293 331,547 94 1) Please see pages 9-11 for a list of this year's property acquisitions and sales. Investments in existing properties and ongoing projects The investments in existing properties and projects, comprising land, new construction and renovation, totalled SEK 1,017 million. This included SEK 315 million for Klara Zenit in Stockholm, SEK 15 million for Postiljonen in Stockholm, SEK 119 million for Reykjavik in Stockholm, SEK 17 million for Styckjunkaren 3 in Solna, SEK 140 million for Västra Hamnen in Malmö, SEK 36 million for Plåtförädlingen 13 in Helsingborg and SEK 37 million for residential properties in Fruängen. Project portfolio as of 30.09.2001 Proper Proper Munici-Esti-Lettabl Degree Book Added Total Esti- ty ty pality mate e of valu investme invest- mate name type d space, rentabil e nt, SEK ment1) d occu-sq.m. ity, % 30.0 mill. , annu pati 9. SEK al on 2001 mill. rent , , SEK SEK mill mill . . Kranen Office Malmö Q4 15,000 100 190 50 240 24 1, 2001 part of Kranen Office Malmö Q4 4,000 100 26 39 65 6 1, 2001 part of Reykja Office Stockh Q1 15,000 100 137 127 264 29 vik 1 /lab olm 2002 Blåman Office Stockh Q3 39,500 96 1,31 85 1,400 150 nen /retai olm 2002 5 20/ l/ Klara reside Zenit2 ntial ) Järla Office Nacka Sjö3) -stage Office Nacka Q2 12,000 50 54 76 130 21 14) 2002 -stage Office Nacka 18,000 - - 200 200 27 25) Other 388 - 388 - projec ts and land6) Total 103,500 2,11 577 2,687 257 0 1) Excl. respective project's activated financing costs. 2) Upon completion in 2002 the property Klara Zenit/Blåmannen 20 will include approximately 64,000 m2 of lettable space. The values given in the above summary only refer to that part of Klara Zenit which is defined as a project. In addition to the project section, the property includes approx. 25,000 m2 of space which during the greater part of the project period constitutes part of the managed stock of property. Wihlborgs' share in Blåmannen 20/Klara Zenit is 75 per cent, whilst the remaining 25 per cent is owned by the construction company Peab. The degree of rentability refers to offices and shops. The 100 flats have not been rented out. 3) Wihlborgs' share in Järla Sjö, totalling SEK 54 million as of 30.09.2001, has been recorded as an associated company. 4) "Turbinhallen" is in the process of production. 5) "Ättiksfabriken" etc. have not been started. 6) In Hammarby Sjöstad, Wihlborgs owns office and industrial properties with a lettable area of 65,000 m2. The area is under development, and planning is in progress which may create 50,000 m2 planning permission for flats and offices. Financial position Wihlborgs' shareholders' equity totalled SEK 5,347 million (SEK 5,147 m) as of 30 September. The equity/assets ratio increased to 26.2 per cent (24.0 per cent).The Group's liquid assets, including unutilised current account overdrafts, totalled SEK 504 million (SEK 629 m). The loan volume was SEK 13,456 million (SEK 14,478 m) at the period end, with an average interest rate of 5.96 per cent (5.84). The total loan volume includes individual loans for ongoing projects totalling SEK 2,021 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 30 September. Of total loans with short interest SEK 7,713 million SEK 7,509 million have been extended with the aid of interest swaps of one to ten years. The loans of SEK 204 million that are subject to interest recalculation in 2001 are covered by interest rate caps at 4 per cent and have an average fixed interest term of 37 days. Summary of the Group's loan structure, as of 30 September 2001 SEK m Average interest % Percentage share, % 2001 204 5.11 2 2002 4,137 5.19 31 2003 2,233 5.93 17 2004 1,178 6.04 9 2005 1,597 6.27 12 2006 537 7.73 4 2007 350 6.14 3 2008 401 5.96 3 >2008 2,062 6.49 15 Current account 21 6.32 0 Debenture loan 736 6.98 5 Total 13,456 5.96 100 Events after the period end Property acquisitions Wihlborgs is acquiring Postfastigheter AB for SEK 2,725 million. Postfastigheter comprises 73 properties with a total area of around 324,000 m2. The properties have great development potential, and through the acquisition Wihlborgs is significantly consolidating its position on the rental market. A large proportion of the total property value is made up of seven properties in Stockholm city centre with a rentable area of 60,000 m2. Wihlborgs is taking possession of the properties on 1 December 2001. Forecast for full year 2001 The profit after financial items for the year 2001 will exceed the result for 2000 (SEK 652 million). The assessment made in the interim report for January-June 2001 is thus upheld. Financial report dates 2001-2002 Year end Report for 2001 29 January 2002 Annual Report March 2002 Annual General Meeting 4 April 2002 This Interim Report has not been subject to review by the company's Auditors. Malmö, 1 November 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) Wihlborgs Fastigheter AB (publ.), Box 97, S-201 20 Malmö, Sweden Tel: +46 40 20 09 00 ? Fax: +46 40 97 71 89 E-mail: info @ wihlborgs.se ? Home page: http://www.wihlborgs.se 1) The comparative figures for Profit & Loss Account items refer to values for the period from January to September 2000, whilst those for Balance Sheet items refer to values as of 31 December 2000. 2) For definitions, please see page 12. 3) Refers to rental values on a full year basis, which are defined as rent payable as per 30 September 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/2001/11/01/20011101BIT00320/bit0001.doc The full report http://www.waymaker.net/bitonline/2001/11/01/20011101BIT00320/bit0001.pdf The full report