Mandamus Interim Report 2001-09-30

Interim Report, 1 January - 30 September 2001 · Pre-tax profit amounted to SEK 154m (180m), including profits from property sales of SEK 33m (62m). · Management profit totalled SEK 114m (113m). Third-quarter management profit was SEK 59m (53m) - the best figure ever for a single quarter. · The trend of profit from Mandamus' participation in a property consortium in Haninge has exceeded expectations. · Mandamus is currently managing more residential flats than any other listed Swedish property company. A total of 17,579 flats, including 4,236 through Mandamus' participation in a property consortium, are now under management. · Pre-tax profit for the whole year is expected to amount to at least SEK 170m. · OPERATIONS IN JANUARY-SEPTEMBER 2001 Rent and profit trends Rental income amounted to SEK 646m (619m), representing a year-on-year rise of just over 4%. This increase in rental income was due primarily to additional rents from newly acquired properties over the past 12- month period. The average economic letting ratio for the period was 97.8%, against 97% in the corresponding period last year and at year- end. Vacancies in the stock relate mainly to commercial premises, while the vacancy rate for residential property was only 0.8% at 30 September. This shows continued very strong demand for homes in Mandamus' chosen areas. After deduction of property costs, net trading profit was SEK 335m (323m), representing a surplus ratio of 51.9% (52.3%). Depreciation on properties amounted to SEK 39m (36m) and central administrative expense to SEK 12m (13m). During the period, just over SEK 1m was received in management remuneration from Mandamus Förvaltning, the associated management company in Haninge. Income from associated companies Income from Mandamus' investment in the property consortium in Haninge totalled SEK 16m during the period. In the profit and loss account, this income is divided among three profit items, depending on the type of income received. Interest on shareholder loans and the share of profit in associated companies are reported in the profit and loss account under the heading 'Profit from associated companies', while remuneration for the consortium formation is disclosed under 'Non-repeating income'. The latter income is excluded from the figure for group management profit, since it does not constitute part of the group's normal day-to- day operations. * Income from management assignments 1.1 * Interest on shareholder loans 3.5 * Share of profit in associated companies 6.4 * Remuneration for consortium formation 5.0 Total profit contribution 16.0 Altogether, income from the associated company amounted to SEK 16m, of which SEK 11m affected management profit for the period and the remaining SEK 5m represented non-repeating income. Management profit Interest expense amounted to SEK 182m (163m) -- up SEK 19m, owing mainly to a higher loan volume for the purpose of financing Mandamus' property acquisitions and acquisition in consortium acquisitions. Financial income totalled SEK 1m (2m). Quarter-on-quarter, financial income was down SEK 3m as a result of changed accounting principles regarding profit from associated companies, which is now reported separately. Interest contributions continued to decrease, as expected, and amounted to SEK 2m (5m) for the period. Management profit, i.e. profit before items affecting comparability, such as disposal profit, interest contributions and non-repeating profit, totalled SEK 114m (113m). Management profit for the latest 12- month period amounted to SEK 140m, representing a year-on-year rise of SEK 4m. Management profit for the third quarter of 2001 totalled SEK 59m (53m), and is Mandamus' best ever figure for a single quarter. Profit from associated companies boosted management profit by around SEK 11m. [REMOVED GRAPHICS] Profit from property disposals implemented during Q1-3 amounted to SEK 33m (62m), representing an average profit of some 16% on the book value of the properties sold. During Q3, two small properties were sold at a minor loss. These properties were located in Hovås near Gothenburg and in Valdemarsvik. Pre-tax profit, which includes such items affecting comparability as profits from property sales, interest contributions and non-repeating income, totalled SEK 154m (180m). This year-on-year fall is entirely due to the fact that profit from property sales was lower than in the corresponding period in the previous year. Profit after standard tax amounted to SEK 111m (130m), corresponding to earnings per share of SEK 5.57 (6.40). Cash flow per share was SEK 5.87 (5.17). Strong focus of property stock on residential properties in growth areas At 30 September 2001 the group owned properties with a book value of SEK 5,709m (5,484m), representing a rise of just over 5% since year-end. This increase was due mainly to the acquisition of two property stocks in the municipality of Huddinge in southern Greater Stockholm. During the period, 38 properties were purchased for SEK 486m. In the same period, 26 properties with a book value of SEK 207m were sold. There was a further reduction in the number of properties owned during the period, through property adjustments whereby a number of properties were joined together. At 30 September, the number of properties owned was 309. Investments in the existing property stock during the period amounted to SEK 36m (46m), which is on a par with the group's planned depreciation. Since Mandamus' admission to the stock exchange three years ago, the property stock has almost doubled. This has taken place while the stock has also been restructured and concentrated in growth areas. At the time of quotation, 32% of the property stock in terms of book value was located in growth areas; this proportion has now - at 30 September 2001 - risen to 69%. The proportion of flats acquired in growth areas, i.e. including the management assignment in Haninge, has simultaneously risen to 80%. The share of residential properties has also continued to rise, to 85% at 30 September - 25 percentage points higher than at the date of the company's stock-exchange admission. Change in property Book value, SEK m Number Rentable area, 1,000 m2 holdings At 15 June 1998 2,957 547 919 Properties sold -1,724 -396 -546 Remaining stock 1,233 151 373 Properties acquired 4,352 172 848 Investments/property 297 -14 - regulation Depreciation/write- -176 - - downs Changes in exchange 3 - - rates At 30 September 2001 5,709 309 1,221 Financial position At 30 September 2001, the group had interest-bearing liabilities of SEK 4,230m (3,937m). Of these liabilities, SEK 10m (10m) were in foreign currencies. The average fixed-interest term of the loan portfolio was 2 (1.9) years, and the average interest rate was 5.77% (5.68%). Net debt at 30 September 2001 amounted to SEK 4,118m (3,919). Since year-end, net debt has risen by SEK 218m owing to new loans taken out to finance property acquisitions for the period. At 30 September the group had SEK 345m (377m) in confirmed unutilised credit pledges. Loan structure, fixed-interest Loans, Average interest, % % of loans terms until (year) SEK m 2001 847 5.45 20 2002 862 5.78 20 2003 1,088 6.10 26 2004 516 5.75 12 2005 358 5.98 8 2006 487 5.44 12 2007- 72 6.06 2 Total 4,230 5.77 100 The visible equity ratio was 22.2% (22.3%) at 30 September, while the adjusted equity ratio was 27.0% (25.7%). Shareholders' equity rose by SEK 31m to SEK 1,306m during the period. Profit for the period boosted shareholders' equity by SEK 111m and the dividend paid reduced group equity by SEK 80m. Forecast In the light of profits for the first nine months of the year, pre-tax profit for the year is expected to reach at least SEK 170m. This profit forecast, representing earnings per share of SEK 6.15 (8.02), may be adjusted as a result of profits from additional property sales during the year. Stockholm, 23 October 2001 Anders Johansson Managing Director ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2001/10/23/20011023BIT00980/bit0001.doc The Full Report http://www.waymaker.net/bitonline/2001/10/23/20011023BIT00980/bit0001.pdf The Full Report