Mandamus Interim Report 1 January-30 June 2002

Interim Report, 1 January - 30 June 2002 · Management profit amounted to SEK 73m (55m), the highest figure ever for the first half-year. The figure for the second quarter, also the best ever, is SEK 46m (37m). · Pre-tax profit, which totalled SEK 72m (93m), included a loss of SEK -1m (+33m) from property sales. · During the first half-year, five residential properties were acquired: three in Malmö, with a total of 164 flats, and two in Värnamo containing 46 flats. · In July, an office building in southern Greater Stockholm was sold for SEK 37m, at a sale profit of just under SEK 4m. · Pre-tax profit for the year is expected to amount to at least SEK 160m. OPERATIONS Rent and profit trends Rental income totalled SEK 451m (425m), just over 6 per cent higher than in the previous year. This increase mainly reflects additional rental income from properties acquired over the past 12 months. The average economic letting ratio for the period was 98 per cent, 0.1 percentage point higher than at year-end and 0.3 percentage point higher than in the corresponding period in 2001. Vacancies in the stock are mainly in commercial premises, while the vacancy ratio for housing was only 0.8 per cent at 30 June. This indicates a persistent massive demand for homes in Mandamus' market areas. After deduction of property costs, net operating income (NOI) of SEK 217m (207m) remained, entailing a surplus ratio of 48.1 (48.7) per cent. Lower heating costs than in a normal year contributed to this NOI improvement. Depreciation on properties amounted to SEK 26m and central administrative expense to SEK 9m (8m). During the period, just under SEK 2m (0) in management remuneration was received from the associated company Mandamus Förvaltning i Haninge AB. Income from associated companies Income from Mandamus' associated company in Haninge totalled just under SEK 12m (3m). This income comprises just under SEK 2m (0) in management remuneration, plus SEK 10m (0) in shareholder loans and the company's share of profit in the associated company for the period. The six-month interim profit for 2001 also included a non-recurring payment of SEK 3m for formation of the consortium. The profit trend of the associated company, which has a market profile as a member of the Mandamus group, exceeded expectations for the first half-year. Management profit Interest expense amounted to SEK 122m (119m). This rise of SEK 3m is due mainly to an increase in borrowing to finance Mandamus' own property acquisitions and participation in consortium acquisitions. Financial income totalled SEK 1m (1m). Management profit for the period, i.e. profit before items affecting comparability such as sale profit, interest contributions and profit of a non-recurring nature, totalled SEK 73m (55m). The figure for the second quarter was SEK 46m (37m) and is, like the six-month figure, the highest ever for the corresponding period of the year. For the past 12- month period (on a rolling 12-month basis), management profit amounted to SEK 166m, which is SEK 18m higher than the corresponding figure for 2001. The loss from property sales during the period amounted to SEK -1m (+33m), of which SEK -3m (14m) relates to second-quarter profit from property sales. Altogether, nine properties with a total rentable area of 11,600 m2, including 8,000 m2 of commercial premises, were sold during the first half of the year. With these disposals, Mandamus has left another four areas: Enköping, Falkenberg, Gävle and Landskrona. Pre-tax profit, which includes such items affecting comparability as sale profit, interest contributions and profits of a non-recurring nature, amounted to SEK 72m (93m). This deterioration compared with 2001 is due entirely to profit from property sales being lower than during the corresponding period in the previous year. Profit after estimated tax amounted to SEK 52m (67m), corresponding to earnings per share of SEK 2.55 (3.36). Cash flow per share totalled SEK 3.87 (3.01). Further marked focus of property stock on residential properties in growth areas At 30 June 2002, the group owned properties with a book value of SEK 5,838m (5,709m). The rise of SEK 129m since the previous year was due primarily to property acquisitions in Malmö and Värnamo during the period under review. During the first half-year, five residential properties and the site for a site-leasehold property owned previously were acquired for a total of SEK 135m. Also during the first half of the year, nine properties with a book value of SEK 41m were sold. The number of properties owned was, moreover, reduced through property regulation involving amalgamation of 26 properties. At 30 June, the number of properties owned was 278. Investments in the existing property stock for the period amounted to SEK 50m (23m), of which SEK 23m relates to major conversion and extension projects in residential properties in Malmö, Borås and Trollhättan. Since Mandamus' admission to the stock exchange four years ago, the book value of the property stock has virtually doubled. This has occurred simultaneously with the restructuring of the property stock and its concentration in growth areas. The share of properties in growth areas was 32 per cent of book value at the time of quotation; by 30 June 2002 this figure had risen to 70 per cent. During the same period, the proportion of managed flats in growth areas, i.e. including the management assignment in Haninge, rose to 80 per cent of the total number of flats managed. ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2002/07/25/20020725BIT00200/wkr0001.doc The full report http://www.waymaker.net/bitonline/2002/07/25/20020725BIT00200/wkr0002.pdf The full report