Half-Year Report January – June 2020

There was still a lot of activity for Magnolia Bostad during Q2 2020, 2,062 residential units being sold, amounting to 3,246 residential units being sold in the first six months. We strengthened our building rights portfolio through acquisitions and it now amounts to 19,011 building rights. During the quarter, we adapted our working method to reduce the spread of infection by COVID-19, which did not significantly affect either the pace of work or the results of our operations.

January – June 2020

  • Net sales amounted to SEK 1,504 m (276).
  • The operating profit was SEK 437 m (185), of which SEK -30 m (169) refers to changes in the
    value of investment properties.
  • The net profit before tax for the period was SEK 351 m (98) and the profit after tax was
    SEK 366 m (76).
  • Earnings per share after deductions for minority shares was SEK 8.91 (1.69).

April – June 2020

  • Net sales amounted to SEK 1,058 m (243).
  • The operating profit was SEK 348 m (67), of which SEK -25 m (4) refers to changes in the
    value of investment properties.
  • The net profit before tax for the period was SEK 308 m (22) and the profit after tax was
    SEK 324 m (33).
  • Earnings per share after deductions for minority shares was SEK 7.92 (0.74).

Significant events April – June 2020

  • Sale of around 900 residential units in Tullholmsviken, Karlstad to Trenum. 440 units had already been acquired and 460 units were acquired during the quarter.
  • Sale of three projects of around 1,040 residential units in Sundsvall, Sundbyberg and Skellefteå to Heimstaden Bostad.
  • Sale of a community service property in Borlänge of 101 residential units to SBB i Norden.
  • Sale of the Björnbäret project developed for long-term management in Kalmar, consisting of over 230 residential units to a company formed by Arctic Securities. The project started the production process in 2018 as an investment property.
  • Land allocations obtained in Tamarinden, Örebro for the development of around 180 residential units.
  • Agreement signed for the acquisition of four additional projects of around 990 residential units in Sundbyberg, Sollentuna and Ystad.
  • Repayment of the remaining part of a bond loan with a nominal amount of SEK 450 m on the due date of 28 April.
  • On 26 June, the Board announced that Johan Tengelin will be appointed as the new CEO of Magnolia Bostad, no later than December 2020.
  • From Q2 2020, Magnolia Bostad has applied changed principles for the consolidation of tenant-owner associations until the time the final home buyers move into their apartments.

Significant events after the end of the quarter

  • No significant events have occurred after the end of the quarter.
 

For more information, please contact:

Fredrik Lidjan, CEO
fredrik.lidjan@magnoliabostad.se 

Fredrik Westin, CFO
fredrik.westin@magnoliabostad.se
Tel. +46 72 720 00 06

The information Magnolia Bostad publishes in this report is required in accordance with the EU Market Abuse Regulation (EU) No 596/2014 and the Securities Market Act. The information was submitted for publication, through the agency of the contact persons, on 7 July 2020 at. 08.00 a.m. CEST.

Magnolia Bostad AB, CIN 556797-7078, is a leading urban developer that develops new residential properties, including rental apartments and tenant-owned apartments, community service properties and hotels, in attractive locations in Sweden's growth areas and major cities. Our work is based on a holistic approach where the operations are conducted in a way that promotes long-term, sustainable urban development. Magnolia Bostad's shares (MAG) are listed on Nasdaq Stockholm. More information is available at www.magnoliabostad.se

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About Us

Magnolia Bostad AB, CIN 556797-7078 develops new residential properties, including rental apartments and tenant-owned apartments, community service properties and hotels, in attractive locations in Sweden's growth areas and major cities. Our work is based on a holistic approach where the operations are conducted in a way that promotes long-term, sustainable urban development. Magnolia Bostad's shares (MAG) are listed on Nasdaq Stockholm. More information is available at www.magnoliabostad.se