K-Fast Holding AB (publ): Year-end report 2021
Financial ratios for the period 1 January–31 December 2021
| Financial ratios | 2021 Oct–Dec |
2020 Oct–Dec |
2021 Jan–Dec |
2020 Jan–Dec |
| Rental income, SEK million | 75.3 | 56.2 | 265.9 | 203.9 |
| Profit from property management, SEK million | 27.0 | 19.1 | 101.4 | 75.3 |
| Comprehensive income for the period, SEK million | 361.8 | 171.1 | 1 044.4 | 473.1 |
| Investment properties, SEK million | 9,603.7 | 6,853.5 | 9,603.7 | 6,853.5 |
| Long-term net asset value (NAV), SEK million | 4,976.1 | 3,661.2 | 4,976.1 | 3,661.2 |
| Number of apartments under management | 2,723 | 2,237 | 2,723 | 2,237 |
| Number of construction starts, apartments | 996 | 912 | 996 | 912 |
| Number of apartments under construction | 1,820 | 1,311 | 1,820 | 1,311 |
| Number of apartments under project development | 5,869 | 3,880 | 5,869 | 3,880 |
| Interest coverage ratio, multiple | 4.0 | 2.3 | 3.4 | 2.4 |
| Equity/assets ratio, % | 36.9% | 41.9% | 36.9% | 41.9% |
| Debt-to-equity, % | 51.8% | 50.2% | 51.8% | 50.2% |
| Profit from property management, SEK per share* | 0.13 | 0.09 | 0.47 | 0.36 |
| Growth in profit from property management per share, % | 41.5% | 74.6% | 29.8% | 6.3% |
| Long-term net asset value (NAV), SEK per share* | 23.11 | 17.00 | 23.11 | 17.00 |
| Growth in long-term net asset value (NAV), per share, % | 9.1% | 6.3% | 35.9% | 36.1% |
| Earnings per share, SEK* | 1.68 | 0.79 | 4.85 | 2.29 |
| Number of shares outstanding at the end of the period, millions* | 215.3 | 215.3 | 215.3 | 215.3 |
| Average number of shares outstanding during the period, millions* | 215.3 | 215.3 | 215.3 | 207.5 |
*Adjusted for 6:1 share split on 7 June 2021.
A Message from the CEO
It is almost like a new Group is delivering its full-year results. After a year with K-Prefab as an important part of the Group I can conclude that synergies, collaborations and improved job satisfaction are proving to be even better than we expected before the acquisition. Prefab is now a well-integrated business area that contributes both competencies and creativity as well as a customer base and cash flow. K-Fastigheter is stronger and better than ever – and we have only just begun.
K-Fastigheter has extensive experience of working at a high pace and with clear goals. The acquisition of K-Prefab, major property acquisitions around Sweden, and uncertainty about cement supply were part of our daily working life in 2021. We have chosen to build to a high standard and deliver apartments in line with market demand. We have historically never utilized government investment support in the construction of our concept buildings, which means that the abolition of the investment support does not affect our future decisions or results of operations.
The Group currently has around 700 co-managers and I am proud of the commitment and competence everyone has exhibited which contributes to finding the best solutions quickly and in a focused manner. I feel privileged and proud to be the team leader of K-Fast.
Thanks to the commitment of the Group’s co-managers and our collaboration partners we are able to report that 2021 was one of K-Fastigheter’s most successful years to date. 2021 was also a year marked by Covid-19. The pandemic has affected all of society and to some extent also affected K-Fastigheter’s operations, although not to a significant extent. Profit from property management increased by 35 percent to SEK 101.4 million, corresponding to an increase of 30 percent per share. The Group's comprehensive income for 2021 increased by 122 percent, to SEK 1,048.1 million. Earnings per share increased by 36 percent in 2021 compared to 2020. Vacancies improved in the fourth quarter and the financial letting ratio amounted to 97.0 percent at the end of the year.
The total acquisition value of proprietary ongoing construction projects corresponds to approximately 69.8 percent of market value on completion, based on market valuations as of the end of the year. The corresponding figure at the end of 2020 was 73.1 percent. This KPI, which we internally term “PTV” (production to value), indicates a gross margin on new construction of approximately 30 percent. We recognize this margin as unrealized value changes in line with projects being completed. The improved PTV was partly due to increased efficiency and creativity which meant that we were able to offset the price increases experienced during the year, and to increased market values.
In 2021 we started construction of 996 apartments, which means that we are well in line with achieving our operational target of starting constructions of 1,300 apartments annually from the end of 2023. In addition to ongoing projects, we have acquired reassuring volumes of land and development properties in locations where we see considerable potential for our concept buildings. K-Fastigheter shall be an attractive partner for developing new neighborhoods and we look forward to many interesting proposals and collaborations in 2022.
I have said it many times before, but K-Fastigheter is so much more than a property company. This means that operations have an overall strength that is critical to our success and to creating value for all shareholders. To clarify this, we have decided to report total debt-to-equity ratio from this report onwards, a new KPI that includes the entire Group unlike previously when we only reported the loan-to-value ratio on the property portfolio. From now on we will also be reporting interest cover at Group level and not just for the property portfolio. Please note that our respective targets remain unchanged, it is the definition that has been updated. Both adjustments are a natural step as we are so much more than a property company.
The year started with some financial market uncertainty, but for K-Fastigheter all the conditions are in place for 2022 to become another year of growth across the entire Group.
Jacob Karlsson, February 2022
A complete Interim report January-December 2021 is attached and also published on the Group’s website, under the heading Financial reports.
For further information, please contact:
Jacob Karlsson, CEO, K-Fast Holding AB, e-mail: jacob.karlsson@k-fastigheter.se, telephone: +46 738 219 626
Martin Larsson, Deputy CEO/CFO, e-mail: martin.larsson@k-fastigheter.se, telephone: +46 703 533 160
Anders Antonsson, Head of Investor Relations, e-mail: anders.antonsson@k-fastigheter.se, telephone: +46 708 730 900
This information is such that K-Fast Holding AB is obliged to disclose in accordance with the EU’s Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 8:30 a.m. CET on 17 February 2022.
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In a recorded presentation, to be published at 10:00 a.m. CET on Thursday 17 February 2022, K-Fastigheter’s President and CEO, Jacob Karlsson, and CFO, Martin Larsson, are commenting on the Group’s Interim report January-December 2021. The presentation is held in Swedish. Link to the presentation: www.k-fastigheter.se/en/investors/presentations. Questions may be addressed in writing to ir@k-fastigheter.se with answers being compiled on an ongoing basis during the day and being published on www.k-fastigheter.com/en.
This disclosure contains information that K-Fast Holding AB is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014) and the Swedish Securities Markets Act (2007:528). The information was submitted for publication, through the agency of the contact person, on 17-02-2022 08:30 CET.
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