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Year-End Report January – December 2020

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2020 was a successful year for Magnolia Bostad. Despite the ongoing pandemic, we were able to deliver our best full-year results ever, expand the building rights portfolio and increase the number of production starts at the same time as we reduced net indebtedness. Through our locally-based business and project development organization and our more than 22,700 building rights, we see continued profitable growth in front of us in accordance with the new goals set by the Magnolia Bostad’s board.

January – December 2020

  • Net sales amounted to SEK 2,358 m (896).
  • The operating profit was SEK 906 m (366), of which SEK 336 m (348) refers to changes in the value of investment properties.
  • The net profit before tax for the period was SEK 725 m (194) and the profit after tax was SEK 688 m (157).
  • Earnings per share after deductions for minority shares was SEK 17.40 (3.41).
  • In line with the new dividend policy, the Board proposes that no dividend be paid for the 2020 financial year.

October – December 2020

  • Net sales amounted to SEK 572 m (501).
  • The operating profit was SEK 278 m (34), of which SEK 239 m (-4) refers to changes in the value of investment properties.
  • The net profit before tax for the period was SEK 227 m (-9) and the profit after tax was SEK 202 m (10).
  • Earnings per share after deductions for minority shares was SEK 5.50 (0.13).

Significant events October – December 2020

  • Johan Tengelin took over as CEO on 1 December.
  • Six projects acquired of 3,000 estimated building rights in Borås, Ystad, Göteborg and Strängnäs.
  • Deeper cooperation with SBB by forming a new JV to acquire four projects for around 2,300 residential units from Magnolia Bostad and a project for around 250 residencies from SBB.
  • Sold two care homes in Nacka and Östersund to SBB.
  • Sold two projects to Heimstaden Bostad: Nya Hovås for 180 residential units with an estimated property value upon completion of SEK 450 m and Söderbymalm in Haninge for 350 units. The project in Haninge was initially developed for self-management and the profit from the transaction is therefore reported as a change in the value of investment properties.
  • Sold a project in Sundbyberg of 200 rental apartments to CBRE Global Investors. Estimated property value upon completion is around SEK 588 m.
  • An Extraordinary General Meeting resolved on a dividend of SEK 2 per share for the 2019 financial year.
  • A new unsecured green bond issued of SEK 550 m and voluntary repurchase of certain outstanding bonds.

Significant events after the end of the quarter

  • New targets and dividend policy were adopted by the Board on 23 February.

For more information, please contact:
Johan Tengelin, CEO
Johan.tengelin@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 24 February 2022 at. 08.00 a.m. CET.

Magnolia Bostad AB, CIN 556797–7078, is a leading urban developer that develops new residential properties primarily rental apartments but also tenant-owned apartments, community service properties and hotels, in attractive locations in Sweden's growth areas and major cities. Housing is being developed both for sale and for self-management. 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.com/en

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