Vasakronan’s interim report January–June 2024

Stable income from property management and increased rental revenue

• Rental revenue increased 4% to a total of SEK 4,704 million (4,504). The increase was primarily due to indexation. In comparable property holdings, the increase in rental revenue was 4%.
   
• New lettings corresponding to 65,000 square metres (66,000) and annual rent of SEK 370 million (342) were contracted. Net lettings amounted to negative SEK 92 million (negative: 95).
   
• The occupancy rate was 90.0% at the end of the period and was 90.9% at the end of 2023.
   
• Operating surplus increased 5% to a total of SEK 3,493 million (3,311). For comparable property holdings, the increase was 5%.
   
• Net interest amounted to an expense of SEK 954 million (expense: 841). The increase was due to higher short market interest rates during the period.
   
• The interest coverage ratio for the last 12 months deteriorated to a multiple of 3.7 (4.0), due to higher interest expenses.
   
• Income from property management amounted to SEK 2,376 million (2,330), up 2%. The increase was due to a higher operating surplus, which was offset by higher interest expenses.
   
• The change in comparable property value amounted to a decrease of SEK 203 million (decrease: 7,679) for the period, or down 0.1%.
   

“Rental revenue continued to increase over the quarter and we continue to report strong income from property management,” says Johanna Skogestig, CEO.
 

“Activity in the quarter was characterised by a large number of customer dialogues and renegotiations as well as by a high volume of new lettings. At the same time, the lettings market is discerning and we know that many tenants are reviewing their needs in terms of premises, as well as streamlining their floorspace, which is visible in our net lettings. While my assessment is that this trend will continue for several quarters going forward, I remain confident in our position. The combination of our financial strength together with our locations and the strength of our offering means that we have good preconditions to continue generating high returns.”

For further information, please contact:

Johanna Skogestig
CEO of Vasakronan 
Tel: +46 (0)73 068 75 17
E-mail: johanna.skogestig@vasakronan.se

Johnny Engman
Chief Financial Officer 
Tel: +46 (0)70 355 59 27
E-mail: johnny.engman@vasakronan.se

Vasakronan is Sweden’s leading property company with a portfolio valued at around SEK 176 billion. The portfolio is focused on centrally located office and retail properties in the growth regions of Stockholm, Uppsala, Gothenburg and Malmö. In terms of city retail, Vasakronan is the largest in all regions. The property portfolio comprises 166 properties with a total area of about 2.4 million square metres. The company is owned in equal shares by the First, Second, Third and Fourth Swedish national pension funds. Our assignment is to generate a high, risk-weighted return. Though never at the expense of the environment and people. Read more at www.vasakronan.se

Tags: