Year End Report 2001

Year end report 2001 · The profit after financial items increased to SEK 704 million (SEK 652 m) · EPS increased to SEK 1.69 (SEK 1.48) after full tax · 117 properties have been sold for a total of SEK 2,722 million · Proposed dividend of SEK 0.80 (0.70) per share · Net asset value per share as of 31 December 2001: SEK 21.00 Results The profit after financial items increased to SEK 704 million (SEK 652 m) 1) . EPS after full tax totalled SEK 1.692) (SEK 1.48). Rental income for the period totalled SEK 2,076 million (SEK 2,239 m). The operating surplus before depreciation totalled SEK 1,261 million (SEK 1,362 m). The operating profit increased to SEK 1,423 million (SEK 1,416 m). The profit includes SEK 386 million (260 m) in profits from the sale of properties. The financial net totalled SEK -719 million (SEK -764 m) including interest grants totalling SEK 6 million (SEK 12 m). Rental income for comparable property holdings has increased by SEK 70 million and property-related costs by SEK 25 million. The operating surplus has thus increased by SEK 45 million (4.2%) during 2001 in comparison with 2000. The profit after financial items for the fourth quarter totalled SEK 167 million (SEK 246 m). Rental income totalled SEK 524 million (SEK 574 m) and the operating surplus before depreciation totalled SEK 305 million (SEK 337 m). 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 89 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 2.5 billion, a total leasable floor area of 2.7 million sq.m. and a book value of SEK 21.9 billion. The market and property holdings 49 per cent, 40 per cent and 11 per cent of the total property holding's rental value are to be found in the Stockholm, Öresund and other regions, respectively. 23 per cent, 60 per cent and 17 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 94 per cent. Broken down by Wihlborgs' market areas, the letting levels in the Stockholm and Öresund regions are 95 per cent and 93 per cent, respectively, and 92 per cent for other properties. Compared with the previous period the letting level has dropped by one percentage unit, which can chiefly be explained by the acquisition of Postfastigheter. Commercial premises The international downturn in the market during 2001 has meant that Swedish growth has been slowed down and that development of parts of the Swedish economy has been weak. After a strong start to the year the rent levels in the Stockholm region evened out at a high level during the second half of the year. Especially in Stockholm city centre and Kista, 2001 represented a break in the trend after the strong development in recent years. The highest quotations for office rents in these areas dropped, but from a very high level. In other parts of the Stockholm region the demand for premises has continued to be good. In Malmö and Helsingborg, 2001 has continued to represent a good rental market, with rising rents at the beginning of the year, followed by stabilisation during the latter half. Residential premises The demand for accommodation is very high in the Stockholm region and good in the entire Öresund region. In Malmö the demand for housing has greatly increased over the course of the year. It is expected that demand will continue to increase during 2002. The rent negotiations in Stockholm and Malmö have resulted in average increases of 2% and 1.2% respectively as from 1 January 2001. Summary of the property holding as of 31 December 2001 Breakdown by geographic area Region No. Area, Book Renta Econ. Rental Operatin Interes proper Sq.m. value, l Lettin income g t ties SEKm1) value g , SEK surplus, grant, 2) , level m4) SEK m4) SEK m4) SEKm3 per ) cent Stockholm 231 1,102,190 11,906 1,197 95 1 140 719 5 Öresund 330 1,254,445 8,242 1 000 93 949 617 1 Other 80 322,385 1,746 264 92 239 144 - Total 641 2,679,020 21,894 2,461 94 2,328 1,480 6 1) Book value includes undeveloped land and project properties with a value of SEK 2 098 million. 2) The Klara Zenit property is included in the book value in the sum of SEK 1,838 million, of which SEK 1,460 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 December 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 December 2001 for Wihlborgs' property holding as of 31 December 2001. Investments and sales Investments have totalled SEK 4,486 million (1,946), with property acquisitions and investments in existing properties and projects comprising SEK 3,154 million (770) and SEK 1,332 million (1,176), respectively, of this sum. Property sales during the same period amounted to SEK 2,722 million. Property acquisitions 96 properties were acquired for a total of SEK 3,154 million, of which the biggest part relates to the acquisition of Postfastigheter. Properties sold A total of 117 properties have been sold for the combined sum of SEK 2,722 million, yielding a profit of SEK 386 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 548 million. 1. The comparative figures for Profit & Loss Account items refer to values for the period from January to December 2000, whilst those for Balance Sheet items refer to values as of 31 December 2000. 2. For definitions, please see page 16. 3. Refers to rental values on a full year basis, which are defined as rent payable as per 31 December 2001 on a full year basis plus estimated market rental on a full year basis for vacant floor area. 4. ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2002/01/29/20020129BIT00520/bit0003.doc The full year-end report http://www.waymaker.net/bitonline/2002/01/29/20020129BIT00520/bit0003.pdf The full year-end report