Summarised Financial Statements 2000

Summarised Financial Statements 2000 * Mandamus reports its best management profit to date, up 21 per cent to SEK 139m (115m) for the year 2000. * Pre-tax profit amounted to SEK 222m (288m), including SEK 76m (166m) profit from property sales. * At year-end, 65 per cent of the property stock was located in growth areas, and 83 per cent was residential. * During the year, 85 (141) properties were sold for SEK 426m (974m) and six (53) properties were acquired for SEK 336m (1,291m). * The property valuation carried out at year-end shows a market value of SEK 6,100m (5,900m). The actual change in value during 2000 (excluding acquisitions, investments and disposals) was 4.2 per cent, corresponding to SEK 8.82 per share after deferred tax. * Earnings per share after tax amounted to SEK 7.92 (9.80) and estimated net worth per share was SEK 88.06 (85.20). * The Board proposes raising the regular dividend by SEK 0.75 to SEK 4.00 per share -- a 23 per cent increase. This represents just over 75 per cent of profit excluding disposal profits. * During January 2001, six properties in Falkenberg were sold for SEK 55m, at a disposal profit of SEK 17m. Mandamus Fastigheter AB (publ) Summarised financial statements OPERATIONS Rent and profit trends Rental income amounted to SEK 828m (794m), representing a 4 per cent increase compared with the previous year. Rental income from properties owned throughout the year totalled SEK 741m. Rental income from properties acquired during the year amounted to SEK 46m, and rental income from properties sold during the year totalled SEK 41m. Annual rental income (proforma for 2000) for the property stock owned at the end of the financial year has been estimated at SEK 816m. The average economic letting ratio for the year was 97.0 per cent, 1.5 percentage points higher than in the previous year. The letting ratio for housing property at year-end was 99.1 per cent, which is 1 percentage point higher than at the previous year-end. After deduction of property expense, trading profit was SEK 425m (398m). The positive effect of the mild autumn on the group's heating costs, which were some SEK 5m lower than they would otherwise have been, is worth noting. The surplus ratio rose by 1.2 percentage points to 51.3 per cent during the year. Depreciation on properties amounted to SEK 49m (47m) and central administrative expense to SEK 19m (34m). Compared with the previous year, the share of administrative expense accounted for by operation and maintenance rose by some SEK 12m, and the actual reduction in the costs of central administration was therefore 14 per cent or SEK 3m. Interest expense amounted to SEK 220m (204m), and the rise was due mainly to increased borrowing. During the year management profit, i.e. profit before items affecting comparability, rose by 21 per cent or SEK 24m to SEK 139m. This profit represents a margin of 16.8 per cent, which is 2.3 percentage points higher than the previous year. Over the past three years, management profit has, in each quarter, exceeded the figure for the corresponding quarter in the previous year. Q1 Q2 Q3 Q4Whol e Quarterly rental income year and profit SEK m Rental income 2000 204 204 211 209 828 1999 196 193 201 204 794 1998 127 127 125 168 547 Management profit 2000 23 37 53 26 139 1999 14 33 45 23 115 1998 8 20 19 11 58 Gross margin, % 2000 11.318.125.112.416.8 1999 7.117.122.411.314.5 1998 6.315.715.2 6.510.6 The improvement in management profit during the year failed to compensate for the SEK 11m shortfall in interest contributions and SEK 90m fall in disposal profits compared with the previous year. Pre-tax profit therefore decreased to SEK 222m (288m). Profit after full tax amounted to SEK 160m (201m), representing SEK 7.92 (9.80) per share. Focus on housing properties and increased concentration in growth areas During the autumn, the Board adopted a more specific business concept for Mandamus, entailing a further focus of operations on housing properties and growth areas. In line with this concept, concentration of the property stock continued and at year-end 2000 the number of properties owned was 311, 81 fewer than at the previous year-end. Property sales implemented -- mainly outside the specified growth areas -- involved Mandamus leaving another 11 municipalities, and the company now owns developed properties in 40 municipalities. At year-end 83 (81) per cent of the property stock, in terms of book value, was composed of residential properties and 65 (59) per cent was concentrated in the growth areas of Greater Stockholm, Greater Gothenburg, Malmö/Lund and Halmstad. At 31 December 2000, the group owned properties with a book value of SEK 5,432m (5,433m). The year's sales thus balanced well the acquisitions and investments made during the year. Book value of sales implemented was SEK 349m, and six properties were acquired during the year for SEK 336m, of which the acquisition of four properties in Åkersberga near Stockholm accounted for SEK 300m. During the year, an additional SEK 61m was invested in the existing property stock. The table below shows that the book value of Mandamus' property stock has risen by 84 per cent to SEK 5,432m since the company's admission to the Stockholm Stock Exchange in June 1998. Of the current property stock, some 70 per cent has been acquired since admission, and during the same period the number of properties has fallen by 43 per cent to 311. Change in property Book %Numb Rentab holdings value er le area, '000 m² At 15 June 1998 2,957 - 547 919 Properties sold - - - - 486 1,522 370 Remaining stock 1,435 26 % 177 433 Properties acquired 3,866 71 % 134 742 Investments activated 261 5 % - - Depreciation/write- - 133 - 2 - - downs % Changes in exchange 3 0 % - - rates At 31 December 2000 5,432 100 311 1,175 % Market valuation of the property stock As in previous years, Newsec Analys AB assessed the market value of the Swedish property stock at year-end. Complete valuations of a representative selection of the Swedish properties, corresponding to roughly one-third of the book value of the entire stock, were carried out. "Desktop valuations" of the other Swedish properties -- with no in-depth analysis of individual properties -- provided an overview of their value. The estimated market value of the group's total property stock was some SEK 6,100m (5,900m). Eliminating the effects of acquisitions, sales and investments, this valuation represents a rise of 4.2 per cent in value since the previous year-end. Mandamus' property stock in Skåne showed the largest increase in value during the year: roughly 10 per cent. The valuation shows surplus value in the property stock, compared with its book value, of just under SEK 670m or just over 12 per cent. Financial position At 31 December 2000, the group had interest-bearing liabilities of SEK 3,925m (3,547m). The loan portfolio has an average fixed-interest term of 2.1 (2.0) years, and average interest at year-end was 5.77 (5.43) per cent. Net borrowings at year-end amounted to SEK 3,900m, which was SEK 380m higher than at the end of 1999. At 31 December the group had SEK 367m in confirmed unutilised credit pledges. Shareholders' equity at year-end amounted to SEK 1,273m (1,414m), which gives a visible equity ratio of 22.9 (25.4) per cent. During the year, shareholders' equity was reduced by SEK 301m by the payment of dividend exceeding SEK 272m and the company's buy-back of its own shares for just under SEK 29m. The adjusted equity ratio, which includes surplus value in the group's property stock after deduction of full deferred tax, was 28.2 (29.1) per cent at the same date. Shareholders' capital per share amounted to SEK 63.91 (68.83) at 31 December, and net worth per share at the same date was SEK 88.06 (85.20). These key ratios per share are based on the number of outstanding shares on the market, i.e. excluding bought-back shares. In line with the AGM decision in April 2000, buyback of the company's own shares took place. The company's total holdings of bought-back shares amounted by year-end to 624,400 shares, acquired at an average price of SEK 45.24 per share. Through the buy-back, the outstanding number of shares on the market fell by 3.04 per cent to 19,917,562 shares at 31 December 2000. Proposed dividend for the 2000 financial year The Board proposes that the AGM approve a rise of SEK 0.75 per share (corresponding to 23%) in the regular dividend, to SEK 4.00 (3.25). Events since year-end In January 2001, six properties in Falkenberg were sold for SEK 55m, at a disposal profit of SEK 17m. This sale is part of the company's strategy of concentrating its operations in growth areas. Stockholm, 8 February 2001 Mandamus Fastigheter AB (publ) Anders Johansson Managing Director ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2001/02/08/20010208BIT00440/bit0001.doc The full Year-End Report http://www.bit.se/bitonline/2001/02/08/20010208BIT00440/bit0002.pdf The full Year-End Report