INTERIM REPORT JANUARY-JUNE 2019

FIRST SIX MONTHS OF 2019

• Rental revenue increased 16% to SEK 1,261 M (SEK 1,088 M in the year-earlier period). 
• Profit from property management increased 19% to SEK 960 M (806). Profit from property management per Class A and B share after dilution rose 21% to SEK 2.64 (2.18). 
• In total, property revaluation affected profit by SEK 633 M (1,059), of which joint ventures accounted for SEK 174 M (320).
• Revaluation of financial instruments impacted profit by a total of SEK 443 M (115), of which joint ventures accounted for SEK –37 M (20). 
• Profit after tax for the period was SEK 1,771 M (1,666).
• Cash flow from operating activities before changes in working capital rose 10% to SEK 957 M (870), corresponding to SEK 2.63 (2.38) per Class A and B share after dilution. 
• During the period, Sagax invested a net SEK 561 M (1,702), of which property acquisitions accounted for SEK 948 M (1,617), property divestments for SEK 735 M (38) and investments in the existing portfolio for SEK 349 M. 
• Sagax issued an unsecured bond loan of EUR 300 M at a fixed interest rate of 2.25% and a maturity until 2025. 

SECOND QUARTER 2019

• Rental revenue rose 14% to SEK 639 M (559). 
• Profit from property management increased 10% to SEK 496 M (452). Profit from property management per Class A and B share after dilution rose 15% to SEK 1.37 (1.19). 
• In total, property revaluation affected profit by SEK 501 M (708), of which joint ventures accounted for SEK 126 M (253). 
• Revaluation of financial instruments impacted profit by a total of SEK 66 M (–11), of which joint ventures accounted for SEK –20 M (7). 
• Profit after tax amounted to SEK 917 M (985). 
• Cash flow from operating activities before changes in working capital amounted to SEK 635 M (591), corresponding to SEK 1.80 (1.63) per Class A and B share after dilution. 
• Sagax invested a net amount of SEK –291 M (337), of which divestments accounted for SEK 723 M (8) and acquisitions of properties for SEK 269 M (275). 
• In the second quarter, Sagax implemented a 1:1 bonus issue with the issue of new Class A and Class B common shares. The bonus issue meant that the share capital was increased through the transfer of SEK 279 M from unrestricted equity. 

ADJUSTED FORECAST FOR 2019

Profit from property management for 2019, meaning profit before revaluations and tax, based on the current property portfolio and announced acquisitions and divestments, is expected to amount to SEK 1,950 M. The previously submitted forecast was for profit of SEK 1,900 M and was presented when the year-end report for 2018 was published.
   

For further information, please contact CEO David Mindus, tel +46 8 - 545 83 540.

About Sagax
AB Sagax is a property company whose business concept is to invest in commercial properties, primarily in the warehouse and light industry segment. Sagax’s property holdings at 30 June 2019 amounted to 2 931 000 square metres, distributed between 527 properties. AB Sagax (publ) is listed on Nasdaq Stockholm, Large Cap. More information is available at www.sagax.se.

This constitues information that AB Sagax (publ) is legally obligated to publish under the EU’s Market Abuse Regulation and the Swedish Securities Market Act. The information was released for publication, through the agency of the contact person above, on 12 July 2019 at 2:00 p.m. CET.

Every care has been taken in the translation of this press release. In the event of discrepancies, however, the Swedish original will supersede the English translation.

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