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Platzer Fastigheter Holding
Earnings Release • Oct 17, 2023
2955_10-q_2023-10-17_aadfcb76-9342-4246-9a52-8a86637c9ba2.pdf
Earnings Release
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Record high lettings volume in our investment properties
- Johanna Hult Rentsch took office as CEO on August 14
- Net lettings in the quarter amounted to SEK 8 million
- Operating surplus increased to SEK 276 million
- Lease agreement with the head office of Picadeli strengthens foodtech cluster in Gamlestadens Fabrik
• Rental income increased to SEK 1,064 million (921)
- Income from property management amounted to SEK 446 million (528)
- Unrealised changes in the value of properties amounted to SEK –1,123 million (2,792)
- The company posted a loss for the period of SEK –611 million (3,372)
- Value of property portfolio increased to SEK 28,350 million (26,994)
- Earnings per share amounted to SEK –5.10 (28.14)
| Key Performance Indicators | Q1–Q3 2023 | Q1–Q3 2022 | ||
|---|---|---|---|---|
| Long-term net asset value (EPRA NRV) per share | 121.50 | 133.48 | ||
| Interest coverage ratio (times) | 2.2 | 4.0 | ||
| Loan-to-value ratio, % | 49 | 40 | ||
| Yield, % | 3.9 | 3.6 | ||
| Surplus ratio, % | 77 | 77 | ||
| Interim Report 1 January – 30 September 2023 | Economic occupancy rate, % | 92 | 92 | |
| Q3 |
Record high lettings volume in our investment properties
While the overall vacancy rate in Gothenburg rose, we managed to record our highest ever lettings volume. Net lettings in the quarter were strong, amounting to SEK 8 million. Meanwhile, the operating surplus rose to SEK 276 million. At the same time, property values were revised down by SEK –503 million.
The recession in Sweden is expected to last for another year or two. However, Swedish companies have proved to be surprisingly resilient. This is reflected in our lettings in our investment properties, which delivered a two-fold increase in net lettings. The Gothenburg region has proved to be more stable than expected. According to the Business Region Gothenburg (BRG) economic barometer, economic activity in Gothenburg is "weaker than normal", which is not a recession. How deep the economic downturn will be will depend on the development of jobs growth, unemployment and redundancies. Additionally, the labour market is contending with issues relating to skills matching.
The weak Swedish krona and an export-based industry give the Gothenburg economy an advantage over other parts of the country. The Gothenburg region is Sweden's largest export region, accounting for as much as 24% of total goods exports. The Port of Gothenburg has increased its market share and handles 30% of Sweden's foreign trade. The region is undergoing intensive green industrialisation, which is driving major investments.
Vacancy rate lower than overall Gothenburg vacancy rate
In 2022, 175,000 sq. m. of newly built office space came on the market in Gothenburg and the vacancy rate is now just over 11%. In the previous 15 years annual new production amounted to around 30,000 sq. m., which was not enough to cover demand in the rapidly growing Gothenburg. This resulted in a vacancy rate of as low as 2.4% in 2017. In a healthy market, the vacancy rate should be around 5%. This temporary glut in the property market has been factored into calculations for a long time and the occupancy rate in newly produced property remains very high. We are seeing a clear "flight to quality" because the new office space better conforms to companies' requirements and is designed to support new methods of working. Vacancies in the office sector are therefore not affecting prime office space to the same extent as older properties. The total
vacancy rate in our own office portfolio is lower than the overall market vacancy rate. In our largest sub-market, City Centre excluding CBD, our vacancy rate was 2 percentage points lower than the overall market vacancy rate, which shows that our office portfolio is able to perform well even in a highly competitive market.
Fresh analysis from Citymark shows that the number of employees in office-intensive sectors in Gothenburg has increased sharply in 10 years. If employment continues to grow at the projected rate, the number of office workers in Gothenburg is expected to grow by 80,000 people by 2032, corresponding to 522,000 sq. m. Taking planned projects and current vacancies into account, this suggests that Gothenburg will once again face a shortage of office space in 10 years' time.
Stable core business
In the quarter we were able to deliver the highest lettings volume ever in our wholly owned investment properties. Lettings in the reporting period amounted to as much as SEK 117 million. Major new leases included KVD bil in Lilla Bommen, Picadeli in Gamlestadens Fabriker and Designgymnasiet in Masthugget. In total, we concluded 76 lease agreements in the period, on a par with the same period in the previous year (78). Renegotiated leases in the third quarter resulted in an increase in rents of 15%, which was higher than index-linked adjustments.
The operating surplus in the period was larger than ever, amounting to SEK 814 million. This shows that our strategy of focusing on district development is the right one and that our work on enhancing our investment properties is producing results. It is a show of strength in the current business environment. The ability to provide customers with high quality, sustainable and relevant solutions is a crucial aspect of our core business and something that I and my colleagues will focus on under my leadership.
Surprisingly strong resilience among companies in Gothenburg.
3
At the centre of the green transition
Gothenburg retains its strong position as the leading logistics hub despite tougher operating conditions – largely thanks to the strength of Swedish shipping and port operations, the automotive industry, electrification and the green transition. Our portfolio of 350,000 sq. m. of industrial and logistics property corresponds to 15% of the Gothenburg market och 2-3% of the entire Swedish market. Our building rights and existing properties are in good locations in the most attractive areas, Torslanda and Arendal, where the green transition of industry is currently in full swing.
Continued downward adjustment of property values
As expected, the Swedish central bank Riksbanken raised the policy rate by 25 percentage points in September and one more increase is likely. The reason given by Riksbanken was that interest rate hikes reduce the risk of entrenched inflation in the service sector, albeit that the rate of interest has slowed down.
The policy rate increases in the last 18 months have caused problems for the property sector in the form of increased financing costs and higher yields. This, in turn, results in reduced net asset value, reduced net financial income/expense and lower property values.
The value of the company's wholly owned properties increased by SEK 1,356 mkr in the first nine months. In the internal property valuation, the value of the property portfolio was revised down by SEK 503 million in the third quarter. Yield requirements in our office properties, which account for 75% of the portfolio, were revised upwards by 11 percentage points to an average of 4.80% in the quarter. The average for the entire property portfolio was 4.94 %.
Traditional bank financing
Rapidly rising policy rates and subsequent rises in market rates create problems for the property sector. Besides having an adverse impact on the key metrics; interest coverage ratio and loan-to-value ratio, property companies with low credit-rating dependent on bond financing find themselves exposed to refinancing risk.
For our part, as much of 80% of our financing has long been based on traditional bank financing, which in the current climate creates stability for us as a company. We have long-standing relationships with our main banks, which trust us and are willing to increase their engagement in Platzer. They appreciate our proven earning capacity
and the fact that we meet relevant requirements in respect of cash flow and interest coverage ratio, which in the first three quarters was 2.2 times and on a rolling 12-month basis 2.3 times. This means that we, the current market outlook notwithstanding, have the opportunity to continue to grow.
We continue to invest for the future
We focus on increasing our property values by means of increased rental income and good cost control. For the third year running, quarter by quarter, we continue to deliver positive net lettings. The ability to provide customers with qualitative, sustainable and relevant solutions is our core business and something that I and the entire company will continue to regard as a key focus area.
Thanks to our stable core activities, successful lettings operations, access to liquidity and strong, long-term owners we can continue to invest for the future. Higher financing costs and the uncertain economic environment mean that we of course need to be more careful when it comes to investments, but I am convinced that the best way to continue to develop the company is by having a long-term pespective for our business. Additionally, I see good diversification in our two segments: Offices and Industrial/Logistics. The fact that we have systematically built up competence in both areas is a strength that we can draw on in the development and enhancement of an area like Arendal. Having two legs also gives us flexibility in terms of resources. The tenants are different in terms of drive and business logic, which has a balancing effect on our business. Now that I have joined the company as CEO, I look forward to continuing to develop the business together with our committed and skilled employees. I strongly support our strategy for district development and customer focus – a strategy that has produced good results and will continue to lead to future success.
Johanna Hult Rentsch, CEO
Earning capacity operating surplus, quarterly
SEK, million
Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23
Value of property portfolio, SEK m
Our sustainability initiatives
We actively contribute to positive community development by having a carbon footprint that is as small as possible. During the period we rolled out an updated environmental programme for our construction projects. Energy usage declined by 5.8% and district development in Gamlestadens Fabriker was reinforced by means of new stakeholders who will contribute to the identity of the area.
Energy and climate efficiency
Prior to 2023 we set the ambitious target that the energy performance of our investment properties should not exceed 76 kWh/ sq. m. of area heated to a minimum of 10 °C. The outcome for the 12 months to end-September was 76.8 kWh/sq. m. Energy consumption in the first three quarters decreased by 5.8% compared with the same period in the previous year. We are continuously managing energy projects and following up the outcomes. So far this year, we have replaced older lighting systems with LED light fittings and installed addtional roof insulation in a number of properties. In the period, we installed additional solar panel systems, taking the total number to 17. The total installed capacity of our solar panel systems is now just over 3,750 kW.
In the third quarter we implemented an updated environmental programme for all construction projects of up to SEK 100 million. Separate environmental programmes will be drawn up for projects worth more than SEK 100 million. The environmental programme helps us concretise our requirements and guidelines in respect of reuse, waste, energy, water, chemicals and environmentally harmful substances.
A key focus area is to increase the proportion of reuse in all our construction projects. We are also developing a system for measuring the climate savings achieved as a result of resuse of products.
The proportion of properties with environmental certification remains at 84% (92%).
Financing and green leases
Platzer was the first company on Nasdaq Stockholm Large Cap in Sweden whose share was awarded Nasdaq Green Equity Designation. The aim of the designation is to make things easier for investors looking for sustainable investments. In order to qualify, green activities must account for more than 50% of sales and a majority of investments. The designation is assessed annually for renewal and in this year's assessment, 90% (91%) of rental income, 89% (89%) of operating costs and 91% (97%) of investments were green.
As a member of EPRA (European Public Real Estate Association), we report in accordance with their sustainability framework, which is integrated into our annual reporting. Results showing the extent to which member companies' reporting conforms to the 28 key metrics that constitute the framework were released in September. We achieved a Silver award for the second year running.
Our green financing amounted to 66% (73%) at the end of Q3. We also entered into new leases with green annexes, which raised the proportion of green leases to 63% (51%) at the end of the period.
Platzer as a community stakeholder
We want to be actively involved in the development of the areas where we have a presence, both through our work on our own properties and in collaboration with other participants. District development is therefore a key part of our strategy.
Platzer's sustainability reporting
In our quarterly reports we report on the outcomes of a few prioritised sustainability issues and sustainability goals, and provide information on current events during the quarter which are linked to our sustainability management. An overall picture of our sustainability work is published once a year in our Sustainability report, which is prepared in accordance with the Swedish Annual Accounts Act, GRI Standards and EPRA Sustainability Best Practice Recommendations (sBPR). The Sustainability report for 2022 is available on our website integrated into our 2022 Annual Report.
Entrepreneurship is a prominent feature of the Gamlestadens Fabriker district, which is home to a foodtech cluster. In the third quarter we signed a lease with the salads and food-tech company Picadeli, which will relocate its head office to the area, and also with the design marketplace Forum.
For the third year running, Platzer arranged a seminar during the Frihamnsdagarna festival, which is an arena for discussions and dialogue about social issues. This year, the Frihamnsdagarna festival coincided with the closing weekend of the City of Gothenburg's 400th Anniversary. The theme of Platzer's seminar was "How do we create meeting places in Gothenburg now and in the future?"
Over a period of three years, we, together with residential participants in Södra Änggården, have managed the art centre and showroom Vulkano in order to provide a space for art, creativity and exhibitions. One Saturday in late September we put on a festival packed with culture and more than 1,000 people joined us for a celebration of both this temporary initiative and the next phase in the development of the area.
| Quarterly sustainability metrics | 2023 | 2022 | Change, | 2022 | 2022/2023 | |
|---|---|---|---|---|---|---|
| Unit | Jan–Sep | Jan–Sep | % | Jan–Dec | Oct-Sep | |
| Energy usage in comparable properties | kWh/sq. m. of area heated to a minimum of 10 °C |
53.1 | 56.4 | –5.8 | 78.5 | 76.8 |
| Total energy (electricity consumption in our buildings, district heating and district cooling) |
MWh | 47,634 | 53,224 | –10.5 | 74,161 | 68,834 |
| Carbon dioxide emissions (Scope 1 and Scope 2*) | tonnes CO2e | 187 | 489 | –61.9 | 570 | N/A |
| Carbon dioxide emissions (Scope 1 and Scope 2*) per lettable area | kg CO2e/sq. m. | 0.2 | 0.59 | –66.5 | 0.67 | N/A |
| Green leases | Percentage of lettable area | 63.0 | 51.4 | 22.6 | 53.5 | N/A |
| Environmental certification of properties | % of investment properties | 84.3 | 92.0 | –8.4 | 91.7 | N/A |
| Green/sustainability–linked financing | % | 66 | 73 | –9.6 | 67 | N/A |
* Scope 1 carbon dioxide emissions from company cars and refrigerant leaks.
** Scope 2 carbon dioxide emissions from district heating, from 2023 only emissions from incineration are included in Scope 2.
Emissions from district heating related to production and transport are included in Scope 3, which are reported on an annual basis.
Letting and property management
Continued good demand in both office and logistics market in Gothenburg. Largest lettings volume ever in our wholly owned property portfolio. Lettings in the period amounted to SEK 117 million.
Our total property portfolio on 30 September 2023 comprised 75 properties, of which 22 are project properties. The total portfolio included five jointly owned properties, which are accounted for as associates. The total lettable area, including associates, was 938,000 sq. m. The fair value of the properties was SEK 28,350 million excluding associates.
The economic occupancy rate in the period was 92% (92).
Net lettings and renegoiated leases
The third quarter was characterised by continued good demand in both the office and logistics markets in Gothenburg, in an otherwise more subdued property market. In the period we signed a number of major leases in investment properties in our Offices business area and also delivered the largest lettings volume ever in our wholly owned property portfolio. Lettings in the period amounted to SEK 117 million.
The average remaining lease term was slightly shorter than in the third quarter of the previous year and amounted to 46 months (48). The number of commercial leases was 696 (697), generating a total rental income of SEK 1,527 mkr (1,270) on an annual basis. Income from garage and parking agreements amounted to SEK 58 million. The 20 largest leases accounted for 35% (38) of rental value.
Industrial/logistics
Renegotiated
Investment property Rental value after
Investment property
Associates Rental value after
Associates
leases Offices
Q1–Q3 2023 Q1–Q3 2022
renegotiation, SEK m 33 24 32 38 65 62
Change in rent, % 10 12 12 3 11 6
renegotiation, SEK m – 1 – – – 1
Change in rent, % – 3 – – – 3
We are the leading player in Arendal in industrial/logistics. Major clients include DFDS, DHL, NTEX, Plasman, Schenker, SSAB and Sveafjord (AB Volvo). In total, we have 61 (60) commercial leases for industrial/logistics generating total rental income of SEK 386 million (261) on an annual basis.
Industrial/
Q1–Q3 2023
logistics Total
Q1–Q3 2023
Q1–Q3 2022
Q1–Q3 2022
| Net lettings | Offices | Industrial/logistics | Total | ||||
|---|---|---|---|---|---|---|---|
| SEK million | Q1–Q3 2023 Q1–Q3 2022 Q1–Q3 2023 Q1–Q3 2022 Q1–Q3 2023 Q1–Q3 2022 | ||||||
| Investment properties – lettings | 102 | 38 | 15 | 10 | 117 | 48 | |
| Investment properties – terminations | –61 | –26 | –36 | –13 | –97 | –39 | |
| Project properties – lettings | – | 36 | 14 | 18 | 14 | 54 | |
| Project properties – terminations | – | –4 | – | – | – | –4 | |
| Associates – lettings | 5 | 10 | – | 66 | 5 | 76 | |
| Associates – terminations | –1 | –2 | – | – | –1 | –2 | |
| Total net lettings | 45 | 52 | –7 | 81 | 38 | 133 |
Net lettings, by quarter
Net per quarter
Renegotiated leases and rent increases, by quarter
Area distribution per category
Offices
In the offices segment we are the leading player in Lilla Bommen, Gårda and Gamlestaden. Major clients include the Swedish Social Insurance Agency, the City of Gothenburg, ESS Group, the Swedish Migration Agency, Nordea, NCC and Region Västra Götaland. In total, we have 635 (637) commercial leases for offices, generating total rental income of SEK 1,141 million (1,009) on an annual basis.
Maturity structure leases, per business area
| Major customers | Share * |
|---|---|
| Sveafjord AB (AB Volvo) | 7% |
| ESS Group AB | 5% |
| Region Västra Götaland | 5% |
| Swedish Migration Agency | 4% |
| City of Gothenburg | 3% |
| DFDS Logistics Contracts AB | 3% |
| University of Gothenburg | 3% |
| Mölnlycke Health Care AB | 2% |
| NTEX AB | 2% |
| Nordea Bank Abp, Sweden branch | 2% |
| Total | 36% |
Property value per segment
Earning capacity as at 30 September 2023
| Number of properties |
Lettable area, sq. m. |
Fair value, SEK m |
Rental value, SEK m |
Economic occupancy rate, % |
Rental income, SEK m |
Operating | surplus, SEK m Surplus ratio, % | |
|---|---|---|---|---|---|---|---|---|
| Central Business District (CBD) | 8 | 74,479 | 4,639 | 244 | 83 | 203 | 167 | 82 |
| City centre excl. CBD | 18 | 225,192 | 10,727 | 633 | 95 | 603 | 482 | 80 |
| Central Gothenburg | 26 | 299,671 | 15,366 | 877 | 92 | 806 | 649 | 81 |
| East Gothenburg | 7 | 119,438 | 2,869 | 218 | 94 | 205 | 156 | 76 |
| Norra Älvstranden/Backaplan | 4 | 38,684 | 1,541 | 99 | 96 | 95 | 73 | 77 |
| North/East Gothenburg | 11 | 158,122 | 4,410 | 317 | 95 | 300 | 229 | 76 |
| West Gothenburg | 4 | 22,054 | 248 | 29 | 83 | 24 | 16 | 66 |
| Mölndal | 4 | 28,794 | 748 | 62 | 100 | 62 | 50 | 81 |
| South/West Gothenburg | 8 | 50,848 | 996 | 91 | 94 | 86 | 66 | 77 |
| Total investment properties, offices | 45 | 508,641 | 20,772 | 1,287 | 93 | 1,193 | 947 | 79 |
| Project properties, offices | 17 | 14,520 | 1,243 | 8 | 24 | 2 | –2 | – |
| Total offices excl. associates | 62 | 523,161 | 22,015 | 1,293 | 92 | 1,195 | 945 | 79 |
| Investment properties, industrial/logistics | 5 | 367,070 | 6,239 | 397 | 98 | 390 | 329 | 84 |
| Project properties, industrial/logistics | 3 | 0 | 96 | 1 | 100 | 1 | 1 | – |
| Total industrial/logistics excl. associates | 8 | 367,070 | 6,335 | 398 | 98 | 391 | 329 | 84 |
| Total Platzer excl. associates | 70 | 890,231 | 28,350 | 1,690 | 94 | 1,585 | 1,272 | 80 |
| Associates offices 100% | 3 | 47,354 | 2,767 | 150 | 98 | 147 | 122 | – |
| Associates industrial/logistics 100% | 2 | – | 203 | – | – | – | 0 | – |
Operations
| Rental income, SEK m | Rental income, SEK m | ||||||
|---|---|---|---|---|---|---|---|
| Leases agreed for occupancy as of 1 April 2024: | Offices | Industrial/ logistics |
Platzer total |
Terminated leases with vacation as of 1 October 2023: |
Offices | Industrial/ | logistics Platzer total |
| Current and future new build projects, including | Current and future new build projects, including | ||||||
| associates | 24 | 14 | 38 | associates | – | – | – |
| Investment property, including associates | 36 | – | 36 | Investment property, including associates | 23 | 36 | 59 |
The table is based on the property portfolio as at 30 September 2023 and is based on signed leases. It provides a snapshot of our earning capacity for 2023 but it is not a forecast. The table does not include any assessments of possible changes to leases.
The breakdown of office property is in line with the general geographical breakdown used by the property industry in Gothenburg with the exception of our property at Backaplan, which we account for as Norra Älvstranden. We report our industrial/logistics properties and project properties separately. Project properties include all our properties in Södra Änggården, for example. Below the total figure for Platzer excluding associates we report the figures for our associates at 100% of the value, irrespective of our holding, which is usually 50%.
Leases that have been concluded for future occupancy in six months or later, and future vacancies from terminated leases are reported in a separate table.
By rental value we mean rental income plus the estimated market rent for vacant premises in their existing condition. The results-related columns include current leases in existing properties, including for future occupancy in the next six months. Leases for later occupancy or in properties currently under construction are not included.
Rental income refers to contracted rental income, including agreed supplements such as payments for heating and property taxes, and excluding limited period discounts of approximately SEK 49 million. For project properties where the project has not yet started or where projects are underway, rental value, rental income and operating surplus refer to existing leases and costs in the property. For project properties where occupancy is due to take place in the next six months, the figures include rental value, rental income and operating surplus attributable to these leases.
The operating surplus shows the properties' earning potential on an annual basis, defined as contracted rental income as at 1 October 2023. Deductions are made for estimated property costs, including property administration, for a normal year.
Property transactions
Acquisitions
No acquisitions took place or were agreed in the third quarter.
Earlier in the year we acquired three properties from our and Bockasjö's joint venture Sörreds Logistikpark and part of the property Högsbo 757:50 for continued development of Södra Änggården. We also concluded an agreement with the City of Gothenburg on the acquisition of the properties Låssby 3:6 and Låssby 2:2 once parcelling out has been completed.
Operations
Disposals
No disposals took place or were agreed in the third quarter.
Earlier this year we concluded an agreement with the City of Gothenburg on the sale of part of the property Sörred 4:2 once parcelling out has been completed.
The table shows property transactions completed in the period as well as agreed but not yet completed transactions.
Acquisitions
| Agreement signed Year/quarter |
Property designation | Area | Segment | Type of property | Lettable area, sq. m. |
Completion date | Agreed property value, SEK million |
|---|---|---|---|---|---|---|---|
| 2021/Q3 | Kungsfisken 7 (MIMO) | Mölndal | Offices | Investment property | 32,000 | 2024/Q4* | (prel) 1,500 |
| 2022/Q3 | part of Högsbo 757:50 | Södra Änggården School | Project property | – | 2023/Q1 | 17 | |
| 2023/Q2 | Sörred 7:21 | Torslanda | Industrial/Logistics | Investment property | 23,188 | 2023/Q2 | 416 |
| 2023/Q2 | Sörred 8:12 | Torslanda | Industrial/Logistics | Investment property | 43,346 | 2023/Q2 | 657 |
| 2023/Q2 | Sörred 8:14 | Torslanda | Industrial/Logistics | Investment property | 24,393 | 2023/Q2 | 406 |
| 2023/Q2 | part of Högsbo 757:50 | Södra Änggården Residential property | Project property | – | 2023/Q2 | 2 | |
| 2023/Q3 | part of Låssby 3:6 and 2:2 | Torslanda | Industrial/Logistics | Project property | – | 2023/Q4* | 7 |
| Acqusitions, total | 122,927 | 3,005 | |||||
Disposals
| Agreement signed Year/quarter |
Property designation | Area | Segment | Type of property | Lettable area, sq. m. |
Completion date | Agreed property value, SEK million |
|---|---|---|---|---|---|---|---|
| 2017/Q3 | Remaining phase 2 | Södra Änggården Residential property | Project property | 21,050 | 2023/Q4* | (prel) 246 | |
| 2017/Q3–Q4 | Phase 3 | Södra Änggården Residential property | Project property | 46,900 | prel 2024-2025* | (prel) 536 | |
| 2023/Q2 | part of Syrhåla 4:2 | Torslanda | Industrial/Logistics | Project property | – | 2023/Q4* | 8 |
| Disposals, total | 67,950 | 784 |
* Estimated date of completion
Property, project and urban development
We currently manage major projects comprising a total lettable area of 96,000 sq. m., including joint ventures and associates. In addition to these, we have potential development projects of 340,000 sq. m. gross floor area (GFA), of which residential building rights of around 80,000 sq. m. in Södra Änggården have been sold. The portfolio includes projects in all phases, from detailed development plan to buildings ready for occupancy.
Property development
City centre
In Lilla Bommen, Aria (Gullbergsvass 1:1) is being converted into a modern office building incorporating a restaurant and other amenities and services on the ground floor. The project will be completed in 2023.
Work on the older part of Merkur (Inom Vallgraven 49:1), which we own jointly with Bygg-Göta, is expected to be completed by the turn of the year 2023/24.
Project development
City centre
In Lilla Bommen, directly adjoining the new Hisingsbron bridge, we have an option to acquire two building rights for a total of 43,000 sq. m. gross floor area (GFA) for which a detailed development plan has been adoped. The project is in the planning stage.
Torslanda
Together with Bockasjö we are developing Sörred Logistikpark. Following the completion of earlier phases, we are continuing the development of the two remaining buildings of 14,000 and 30,000 sq. m. respectively.
Our new production (Syrhåla 3:1, phase 1) of 21,000 sq. m. for NTEX will be completed in the fourth quarter of 2023.
We also have two projects (Syrhåla 3:1, phase 2, comprising 21,500 sq. m. and Syrhåla 2:3, comprising 14,000 sq. m.) that are expected to be completed in the fourth quarter of 2023 and first half of 2024 respectively.
Södra Änggården
In Södra Änggården, work is continuing on Internationella Engelska Skolan's (IES) new premises, for occupancy in autumn 2024. Work on non-structural elements is currently underway.
Urban development
Gamlestaden
Operations
In Gamlestadens Fabriker (Olskroken 18:7, etc.) an urban development project is underway, comprising offices, retail, car parks, etc. Development of our building rights and letting is currently underway, together with preparatory work on infrastructure.
Södra Änggården
Södra Änggården is a completely new district. At the same time as the school in the area is being built, property developers are gradually taking possession of their building rights. The last sale of building rights will be completed in 2026.
Almedal
Almedals Fabriker (Skår 57:14) is a former industrial district located alongside the Mölndalsån river, just south of Liseberg, where we are looking to develop office space and other commercial space suitable for today's smallscale business. Work on the detailed development plan is underway.
Operations
Major projects underway
| Property | Segment | Converted area, lettable area, sq. m. |
New area, lettable area, sq. m. |
Total invest ment incl. land, SEK m 1 |
Remaining investment, SEK m |
Fair value, SEK m |
Rental value, SEK m |
Economic occupancy |
rate, % Completed |
|---|---|---|---|---|---|---|---|---|---|
| Gullbergsvass 1:1, Aria | Offices/Central Busi ness District (CBD) |
15,304 | – | 1,249 | 190 | 979 | 61 | 66 | Q4 2023 |
| Högsbo 55:13, School Södra Änggården |
Offices/South West Gothenburg |
– | 8,964 | 468 | 275 | 269 | 27 | 100 | Q3 2024 |
| Total | 15,304 | 8,964 | 1,717 | 465 | 1,248 | 88 |
Business area Offices Business area Industrial/logistics
Major projects underway
| Converted | New area, | Total | Remaining | Fair | Rental | Economic | |||
|---|---|---|---|---|---|---|---|---|---|
| area, lettable | lettable | investment incl. | investment, | value, | value, | occupancy | |||
| Property | Segment | area, sq. m. | area, sq. m. | land, SEK m 1 | SEK m | SEK m | SEK m | rate, % | Completed |
| Syrhåla 3:1, phase 1 | Industrial/Logistics | – | 21,500 | 275 | 14 | 297 | 17 | 100 | Q4 2023 |
| Syrhåla 3:1, phase 2 | Industrial/Logistics | – | 22,000 | 295 | 118 | 190 | 18 | 56 | Q4 2023 |
| Syrhåla 2:3 4 | Industrial/Logistics | – | 13,700 | 195 | 161 | 34 | 14 | 100 | Q2 2024 |
| Total | – | 57,200 | 765 | 293 | 520 | 49 |
| Property | Segment | Type of property | New area GFA, sq. m. |
Project phase | Possible construction start 2 |
|---|---|---|---|---|---|
| Olskroken 18:13, Gamlestadens Fabriker | Offices/East Gothenburg | offices/retail | 19,900 detailed development plan adopted | 2023 | |
| Olskroken 18:14, Gamlestadens Fabriker | Offices/East Gothenburg | offices | 10,200 detailed development plan adopted | 2023 | |
| Högsbo 55:11, Södra Änggården | Offices/West Gothenburg | multi-storey car park |
17,000 detailed development plan adopted | 2023 | |
| Gullbergsvass 3 | Offices/Central Business District (CBD) |
offices | 43,000 detailed development plan adopted | 2024 | |
| Olskroken 18:7, Gamlestadens Fabriker | Offices/East Gothenburg | offices | 2,300 detailed development plan adopted | 2024 | |
| Skår 57:14, Almedals Fabriker | Offices/City centre excl. CBD | offices | 25,000 | detailed development plan in progress |
2024 |
| Högsbo 55:10, Södra Änggården | Offices/West Gothenburg | preschool | 1,800 detailed development plan adopted | 2025 | |
| Olskroken 18:10, Gamlestadens Fabriker | Offices/East Gothenburg | offices | 29,000 detailed development plan adopted | 2025 | |
| Högsbo 34:13, Södra Änggården | Offices/West Gothenburg | residential property |
7,150 detailed development plan adopted | 2025 | |
| Högsbo 2:2, Södra Änggården | Offices/West Gothenburg | residential property |
6,850 detailed development plan adopted | 2025 | |
| Bagaregården 17:26 | Offices/East Gothenburg | mixed-use development |
60,000 | detailed development plan in progress |
2025 |
| Solsten 1:110 | Offices/East Gothenburg | Offices | 3,000 detailed development plan adopted | 2025 | |
| Olskroken 18:11, Gamlestadens Fabriker | Offices/East Gothenburg | offices | 9,000 detailed development plan adopted | 2026 | |
| Olskroken 18:12, Gamlestadens Fabriker | Offices/East Gothenburg | offices | 6,000 detailed development plan adopted | 2027 | |
Potential development projects
| Property | Segment | Converted area, lettable area, sq. m. |
New area, lettable area, sq. m. |
Total investment incl. land, SEK m 1 |
Remaining investment, SEK m |
Fair value, SEK m |
Rental value, SEK m |
Economic occupancy |
rate, % Completed |
|---|---|---|---|---|---|---|---|---|---|
| Sörred 8:16, Building V4, "Sörred Logistikpark" |
Industrial/Logistics | – | 14,900 | 232 | 118 | 114 | 15 | – | Q2 2024 |
| Total | – | 14,900 | 232 | 118 | 114 | 15 | – |
Jointly owned properties accounted for as associates
Potential development projects
| Total | 100,000 | ||||
|---|---|---|---|---|---|
| Arendal 764:720 Arendals udde | Industrial/Logistics | industrial/logistics | 45,000 | detailed development plan adopted |
2024 |
| Arendal 764:720, building right B | Industrial/Logistics | industrial/logistics | 10,000 | detailed development plan adopted |
2024 |
| Arendal 764:720, building right A | Industrial/Logistics | industrial/logistics | 15,000 | detailed development plan adopted |
2024 |
| Property | Segment | Type of property | New area GFA, sq. m. |
Project phase | Possible construction start 2 |
| Jointly owned properties accounted for as associates | ||||||||
|---|---|---|---|---|---|---|---|---|
| Property | Segment | Type of property | New area GFA, kvm |
Project phase | Possible con struction start 2 |
|||
| Sörred 8:15, Sörred Logistikpark, building right V3 | Industrial/Logistics | industrial/logistics | 30,000 | detailed development plan adopted |
2023 | |||
| Total | 30,000 |
1 The total investment including land value also includes the value on acquisition of existing building and planned investment.
2 Possible construction start is the estimated start date of the project, provided planning work proceeds as expected and pre-letting has reached a satisfactory level.
3 Platzer does not currently own the land but has an option to acquire the land together with building right at the market rate.
Total 240,200
4 Project start pending investment decision by tenant.
Results and comments on results
| SEK million | 2023 Jul-Sep |
2022 Jul-Sep |
2023 Jan-Sep |
2022 Jan-Sep |
2022 Jan–Dec |
2022/2023 Oct-Sep |
|---|---|---|---|---|---|---|
| Rental income | 373 | 308 | 1,064 | 921 | 1,229 | 1,372 |
| Property costs | –97 | –66 | –250 | –212 | –290 | –328 |
| Operating surplus | 276 | 242 | 814 | 709 | 939 | 1,044 |
| Central administration | –12 | –9 | –41 | –39 | –58 | –60 |
| Share of profit/loss of joint ventures and associates | –22 | –39 | –69 | 247 | 150 | –166 |
| – of which income from property management | 12 | 9 | 25 | 26 | 32 | 31 |
| – of which changes in value | –24 | –26 | –71 | 319 | 202 | –188 |
| – of which tax | 4 | –10 | 13 | –66 | –43 | 36 |
| – of which sundry expenses | –13 | –12 | –36 | –33 | –42 | –44 |
| Net financial income/expense 1 | –142 | –61 | –352 | –167 | –245 | –430 |
| Profit/loss including share of profit/loss of joint ventures and associates |
100 | 132 | 352 | 749 | 786 | 389 |
| – of which income from property manage ment 2 |
134 | 180 | 446 | 528 | 668 | 586 |
| Change in value, investment properties | –503 | 253 | –1,123 | 2,792 | 2,562 | –1,353 |
| Change in value, financial instruments Change in value, financing arrangements |
62 0 |
107 –94 |
19 0 |
695 –74 |
671 –220 |
–5 –146 |
| Profit/loss before tax | –341 | 398 | –752 | 4,162 | 3,799 | –1,115 |
| Tax on profit/loss for the period | 59 | –123 | 141 | –790 | –773 | 158 |
| Profit/loss for the period 3 | –282 | 275 | –611 | 3,372 | 3,026 | –957 |
| Comprehensive income for the period | ||||||
| Parent Company's shareholders | –282 | 275 | –611 | 3,372 | 3,026 | –957 |
| Earnings per share 4 | –2.35 | 2.29 | –5.1 | 28.14 | 25.26 | –7.98 |
1 Net financial income/expense includes ground lease costs totalling SEK 0.7 million for the year (0.7).
2 Refers to income from property management excluding changes in value, tax and sundry expenses in joint ventures and associates.
3 The Group has no other comprehensive income and therefore the consolidated profit for the period is the same as comprehensive
income for the period.
4 There is no dilution effect because there are no potential shares.
Results
Income from property management for the period amounted to SEK 446 million (528), of which SEK 25 million (26) came from joint ventures and associates. The decrease was due to the fact that the increase in interest expenses exceeded the improvement in operating surplus.
The group posted a loss for the period of SEK –611 million (3,372). Changes in the value of wholly-owned properties had a negative effect on profits of SEK –1,123 million (2,792) and revaluations of financial instruments impacted results by SEK 19 million (621).
Rental income
Rental income in the period increased to SEK 1,064 million (921), up by 16%. Factors contributing to the increase included tenants moving into Kineum (Gårda 16:17), the acquisitions of Sörred 7:21, 8:12 and 8:14, and index-linked increases. Annualised rental income from existing leases (as at 30 September 2023) is estimated at SEK 1,585 million (1,322), see earning capacity on page 7. The economic occupancy rate in the period was 92% (92) and during the quarter 93% (92%).
Q1–Q3 2023 SEK m
Comparable properties 940 848 11
Rental income 1,064 921 16
Property development 15 16 Project development 100 31 Property transaction 19 20 Items affecting comparability –10 6
Q1–Q3 2022
SEK m Change, %
Property costs
Property costs for the period amounted to SEK –250 million (–212). The net increase of SEK 38 million was primarily due to increased electricity costs due to higher electricity prices. At the same time, the electricity subsidy we received was deducted from utility costs. The mild weather in the first quarter of the year and energy optimisation measures contributed to reducing utility consumption. Costs in the first and fourth quarters are normally higher than in the other two quarters, primarily because of higher utility costs and snow removal and anti-icing costs.
| Q1–Q3 2023 SEK m |
Q1–Q3 2022 | SEK m Change, % | |
|---|---|---|---|
| Comparable properties | –213 | –192 | –11 |
| Property development | –7 | –6 | |
| Project development | –24 | –10 | |
| Property transactions | –4 | –4 | |
| Items affecting comparability | –2 | – | |
| Property costs | –250 | –212 | –18 |
Operating surplus
The operating surplus in the period increased by 15% (2) to SEK 814 million to (709). The operating surplus for comparable properties rose by 11%, primarily as a result of new rentals and index-linked increases. The surplus ratio was 77% (77). The investment yield for wholly-owned properties was 3.9% (3.6).
Segment reporting, wholly-owned properties
GROUP
Central administration and employees
Central administration costs for the period amounted to SEK –41 million (–39). The number of employees at the end of the period was 85 (86).
Share of profit/loss of joint ventures and associates
Share of profit/loss of joint ventures and associates for the period amounted to SEK –69 million (247), most of which comprised changes in the value of jointly owned properties. In the second quarter, reported share of profit/loss of associates was retroactively adjusted by SEK 352 million, of which SEK 51 million referred to the first quarter of 2023 and SEK 301 million to previous financial years from 2018 onwards. Previously reported periods were restated to reflect the adjustments. See page 81 of the 2022 Annual Report for a description of investments in associates and joint ventures.
Net financial income/expense
Net financial income/expense for the period amounted to SEK –352 million (–167). Net financial items were primarily adversely affected by higher interest rates, but also by larger debt.
Borrowings were, on average, just under SEK 1,300 million up on the corresponding period in the previous year. The increase was the net effect of financing of acquisitions and project investments and current cash flows.
Average interest rate for the period, including the effects of derivative instruments, was 3.8% (2.2).
Changes in value
Changes in the value of wholly-owned properties in the period amounted to SEK –1,123 million (2,792). We estimated that yield requirements had increased in the period. See page 13 for more information.
Changes in the value of financial instruments totalled SEK 19 million (695).
Tax
Tax expense for the period amounted to SEK 141 million (–790), of which SEK –13 million (–27) comprised current tax and SEK 154 million (–763) deferred tax. Deferred tax was primarily impacted by changes in the value of properties.
Segment reporting
We report our operations in three geographical office segments and industrial/logistics:
- Offices Central Gothenburg (Almedal, City Centre, Gårda, Lilla Bommen, Masthugget and Medicinareberget).
- Offices North/East Gothenburg (Backaplan, Gamlestaden, Lindholmen and Mölnlycke).
- Offices South/West Gothenburg (Högsbo and Mölndal)
- Industrial and logistics (Arendal and Torslanda)
Project properties are included in the segment to which they belong. The total operating surplus in segment reporting for wholly-owned properties corresponds to the operating surplus reported in the income statement, while the total value of property and investments, etc., corresponds to the balance sheet.
The properties we own through associates are reported in a separate segment table, as these are not included in the total amounts in segment reporting. The amounts in the table relating to associates increased as a result of our holding in the company that owns Gårda 2:12 (Gårda Vesta) being classified as an associate with effect from 3 February 2022, and also because occupancy took place in the new part of Merkur in the fourth quarter of 2022. Our properties owned through associates in Industrial/Logistics are under construction.
| Offices | Industrial/ Logistics |
Total | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Period refers to Q1–Q3 | Central Gothenburg | South/West Gothenburg |
North/East Gothenburg |
||||||||
| SEK million | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |
| Rental income | 566 | 467 | 62 | 54 | 220 | 194 | 216 | 206 | 1,064 | 921 | |
| Property costs | -129 | -109 | -19 | -12 | -55 | -47 | -47 | -44 | -250 | -212 | |
| Operating surplus | 437 | 358 | 43 | 42 | 165 | 147 | 169 | 162 | 814 | 709 | |
| Fair value, properties | 15,448 | 15,827 | 2,114 | 2,167 | 4,453 | 4,413 | 6,335 | 4,595 | 28,350 | 27,002 | |
| Of which investments/acquisitions/disposals/ changes in value over the year |
-393 | 316 | -55 | 34 | -27 | 183 | 1,831 | 438 | 1,356 | 971 |
Segment reporting, associates
| Offices South/West North/East |
Industrial/ Logistics |
Total | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Period refers to Q1–Q3 | Central Gothenburg | Gothenburg | Gothenburg | |||||||
| SEK million | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 |
| Rental income | 98 | 80 | – | – | – | – | 2 | – | 100 | 80 |
| Property costs | –19 | –18 | – | – | – | – | –1 | – | –20 | –18 |
| Operating surplus | 79 | 63 | – | – | – | – | 1 | – | 80 | 63 |
| Fair value, properties | 2,767 | 2,864 | – | – | – | – | 203 | 1,046 | 2,970 | 3,910 |
| Of which investments/acquisitions/dispos als/changes in value over the year |
36 | 1,955 | – | – | – | – | 74 | 734 | 110 | 2,689 |
Income from property management, quarterly
Rental income per business area, Jan-Sep
0 200 400 600 800 1 000 1 200 2019 2020 2021 2022 2023 SEK, million
Office Industrial/logistics
Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23
Financial position
Comparative amounts for balance sheet items refer to 31 December 2022.
Balance sheet, condensed
| SEK million | 30 Sep 2023 30 Sep 2022 | 31 Dec 2022 | |
|---|---|---|---|
| Assets | |||
| Investment property | 28,350 | 27,002 | 26,994 |
| Right of use assets, leasehold | 30 | 30 | 30 |
| Other non-current assets | 26 | 20 | 19 |
| Financial assets | 1,311 | 1,584 | 1,489 |
| Current assets | 380 | 253 | 415 |
| Cash and cash equivalents | 170 | 144 | 217 |
| Total assets | 30,267 | 29,033 | 29,164 |
Equity and liabilities
| Equity | 12,812 | 14,044 | 13,698 |
|---|---|---|---|
| Deferred tax liability | 2,376 | 2,583 | 2,503 |
| Non-current interest-bearing liabilities | 12,193 | 7,853 | 7,466 |
| Lease liability | 30 | 30 | 30 |
| Other non-current liabilities | 247 | 247 | 240 |
| Current interest-bearing liabilities | 1,761 | 3,050 | 4,357 |
| Other current liabilities | 848 | 1,226 | 870 |
| Total equity and liabilities | 30,267 | 29,033 | 29,164 |
Pledged assets as at 30 September 2023 amounted to SEK 13,242 million (SEK 11,275). Contingent liabilities as at 30 September 2023 amounted to SEK 1,175 million (1,572).
Platzer has a strong cash flow from operating activities and its financial position is stable. Our projects are proceeding according to plan, with secured financing in place and a high occupancy rate.
Value of properties and property valuation
The properties were recognised at fair value of SEK 28,350 million (26,994), which was based on an internal valuation as at the balance sheet date. All properties are valued internally on a quarterly basis in connection with each closing date in our valuation model based on cash flows over 10 years. Regular external valuations are carried out during the financial year and these provide guidance for the internal valuation. At each year-end we carry out a more extensive external valuation of a few sample properties that form a cross section of the property portfolio. The external valuation covers at least 50% of the value of the property portfolio at year-end and is performed as quality assurance of the internal valuation. In 2022 we carried out external valuation of properties corresponding to 70% of the value of the property portfolio. Historically, the difference between our internal valuation and the external valuation has been marginal, and this was also the case as at 31 December 2022. The investment properties are valued within level 3 in the IFRS 13 fair value hierarchy.
The internal property valuation for the period showed a change in the value of wholly-owned investment properties of SEK –1,123 million (2,792). The change in value for the period was impacted positively by SEK 62 million as a result of increased cash flows, positively by SEK 153 million from urban develop-
Changes in the value of properties
| 2023 | 2022 | 2022 | |
|---|---|---|---|
| SEK million | Jan–Sep | Jan–Sep | Jan–Dec |
| Value of properties, opening balance | 26,994 | 26,031 | 26,031 |
| Investments in existing properties | 1,017 | 1,026 | 1,412 |
| Property acquisitions | 1,462 | – | – |
| Property sales and reclassifications | – | –2,847 | –3,011 |
| Changes in value | –1,123 | 2,792 | 2,562 |
| Value of properties, closing balance | 28,350 | 27,002 | 26,994 |
ment, project development and property development and negatively by SEK –1,338 million from changed required yields in the portfolio. Each property is valued individually and consequently does not take into account any portfolio premiums. The average yield requirement in the valuation as at the balance sheet date was 4.94%, up from 4.85% as at 30 June 2023. As a result of the changing market situation, yield requirements for offices and industrial/logistics properties in our portfolio were estimated to have increased in the period. Valuations are based on an assumption of 6% inflation in 2023, after which inflation is assumed to be 2%, which is in line with the assessments of external valuation experts. Also see page 12.
Transactions in the period
In the first quarter we completed the acquisition of a small parcel of land in Södra Änggården. In the second quarter we completed the acquisition of three properties that have been developed within the JV Sörred Logistikpark. Investments in existing properties in the period amounted to SEK 1,017 million (1,026), with the largest investments involving a new build project at the property Syrhåla 3:1 and a school in Södra Änggården.
Financial assets
As a result of the acquisition from our joint venture at the end of the second quarter, the item investments in associates and joint ventures declined. In the second quarter, reported share of profit of associates and joint ventures was also retroactively adjusted by SEK 352 million, of which SEK 51 million referred to the first quarter of 2023 and SEK 301 million to previous financial years. The adjustment involved a reduction under the item financial assets and a corresponding reduction under the item share of profit of associates and joint ventures. Previously reported periods were restated to reflect the adjustments. Financial assets increased significantly in the period in respect of market value of derivatives.
Equity
The Group's equity amounted to SEK 12,812 million (13,698) as at 30 September 2023. The equity/assets ratio on the same date was 42% (47), well above the financial target of 30%.
Equity per share as at 30 September stood at SEK 106.93 (114.33), while the long-term net asset value, EPRA NRV, was SEK 121.50 (130.12) per share.
Statement of changes in equity, condensed
| 2023 | 2022 | 2022 | |
|---|---|---|---|
| SEK million | Jan-Sep | Jan–Sep | Jan–Dec |
| Equity attributable to the Parent Company's shareholders | |||
| At the beginning of the period | 13,698 | 10,936 | 10,936 |
| Comprehensive income for the period | –611 | 3,372 | 3,026 |
| Dividend | –275 | –264 | –264 |
| At the end of the period | 12,812 | 14,044 | 13,698 |
| Total equity | 12,812 | 14,044 | 13,698 |
The ability to provide customers with high quality, sustainable and relevant solutions is a crucial aspect of our core business.
Financing
Interest-bearing liabilities
As at 30 September 2023, interest-bearing liabilities amounted to SEK 13,954 million (11,823), which corresponded to a loan-tovalue ratio of 49% (44). The average fixed term maturity was 2.3 years (2.1). Current interest-bearing liabilities on the balance sheet refer to loans that are to be renegotiated within the next twelve months and repayments according to plan.
Interest-bearing liabilities primarily comprised bank loans of SEK 11,052 million (8,792), secured through property mortgage deeds. Platzer is also borrowing SEK 1,344 million (1,456) in the form of secured green bonds via Svensk FastighetsFinansiering (SFF). In order to obtain direct financing in the capital markets, Platzer has launched an MTN programme and associated green finance framework for unsecured green bonds of SEK 5 billion, as well as a SEK 2 billion commercial paper programme. Outstanding unsecured green bonds amounted to SEK 1,300 million (1,300) and commercial paper amounted to SEK 255 million (275). The first unsecured bond maturity is in November 2024.
Interest-bearing liabilities increased by SEK 2,131 million in the first nine months of the year. Secured bank loans of SEK 3,001 million matured and were replaced with new secured bank loans of SEK 5,316 million. Secured bonds via SFF of SEK 360 million matured and bonds of SEK 248 million were issued. The volume of commercial paper decreased by SEK 20 million. Loan repayments and other payments by instalments amounted to SEK 52 million.
Green and sustainable financing
Green bonds and green loans, together with sustainabilitylinked financing, accounted for 66% (67) of our outstanding liabilities.
Pledged assets
Unsecured financing accounted for 11% (13) of interest-bearing liabilities. Of interest-bearing liabilities, SEK 12,399 million (9,461) were secured against mortgage deeds, corresponding to 44% (37) of property value.
Fixed interest term and derivatives
The average fixed interest term, including the effect of derivatives contracts, was 2.3 years (2.8) as at 30 September. As at 30 September, the average interest rate, including the effects of derivative instruments, was 4.20% (3.15), excluding unused credit commitments, and 4.31% (3.30) including unused credit commitments. The interest coverage ratio over a rolling 12-month period was 2.3 (4.0).
The total volume of derivatives as at 30 September was SEK 6,620 million (5,570). In the period, Platzer entered into new interest rate swaps of SEK 1,350 million in order to manage the interest coverage ratio and extend the fixed-interest period. Interest rate swaps of SEK 300 million matured. Interest rate swaps are used as interest rate hedges for loans at variable rates and to achieve the desired term structure of interest rates. The reported market value of the derivatives portfolio as at 30 September 2023 was SEK 630 million (611) and the unrealised change in value was SEK 19 million. Only realised changes in value affect cash flow and the market value will be resolved through changes in value during the remaining maturity of the derivatives.
Credit rating
The company has a BBB- credit rating with stable outlook, awarded by the credit rating institution Nordic Credit Rating. The rating was last confirmed in June 2023.
| Financial policy | Target/mandate | Outcome 30 September 2023 |
|---|---|---|
| Equity/assets ratio | >30% | 42% |
| Loans with one bank | <35% | 28% |
| Percentage of loans maturing within one year * | <35% | 14% |
| Average fixed-term maturity | >2 years | 2.3 years |
| Average fixed-interest term | 2–5 years | 2.3 years |
| Fixed-interest term due to mature within 12 months, percentage | 20–60% | 51% |
* excl. commercial paper
| Interest maturity | Loan maturity, SEK m | |||||
|---|---|---|---|---|---|---|
| Year | Interest bearing liabilities SEK m |
Average interest rate, % |
Credit agreements, SEK m |
Used, SEK m |
of which bank, SEK m |
of which MTN/CP, SEK m |
| 0–1 years | 7,384 | 6.831 | 2,716 | 2016 | 1,761 | 255 |
| 1–2 years | 720 | 1.41 | 4,796 | 4,796 | 3,048 | 1,748 |
| 2–3 years | 500 | 1.72 | 6,648 | 5,248 | 4,352 | 896 |
| 3–4 years | 1,450 | 1.42 | 279 | 279 | 279 | – |
| 4–5 years | 730 | 1.14 | 624 | 624 | 624 | – |
| 5–6 years | 1,500 | 0.94 | 503 | 503 | 503 | – |
| 6–7 years | 700 | 0.87 | 488 | 488 | 488 | – |
| 7–8 years | 770 | 1.12 | – | – | – | – |
| 8–9 years | – | – | – | – | – | – |
| 9–10 years | 200 | 2.83 | – | – | – | – |
| Total | 13,954 | 4.20 | 16,054 | 13,954 | 11,055 | 2,899 |
1) Net volume of interest-bearing loans and derivatives results in a high average interest rate. Average interest rate excluding derivatives 5.61%.
Green MTN, SEK 1,300 million Green bank loans, SEK 5,447 million Green bonds SFF, SEK 1,344 million Bank loans, SEK 4,508 million Sustainability-linked bank loans, SEK 1,100 million
Commercial paper, SEK 255 million
The Platzer share
The Platzer share is listed on Nasdaq Stockholm, in the segment Large Cap. In the last 12-month period, the total return on the share, including dividend, has been positive at 4%. In the same period, the Real Estate GI showed a positive total return of 3%.
The Platzer share
The company's share price at 30 September 2023 was SEK 67.20 per share, corresponding to a market capitalisation of SEK 8,052 million based on the number of outstanding shares. In the first nine months of the year, a total of 13.4 million shares (18.9) worth a total of SEK 1,081 million (1,783) changed hands. Average daily turnover was 71,100 shares per day (100,100). The number of shareholders as at 30 September stood at 6,204 (6,126). Foreign ownership amounted to 14.4% (14.1) of share capital.
Dividend policy and dividend
The aim is to pay a dividend over time of 50% of adjusted income from property management after tax. Adjusted income from property management is income from property management attributable to the Parent Company's shareholders. The Annual General Meeting on 23 March approved a dividend of SEK 2.30 per share (2.20), to be paid in two instalments of SEK 1.15 each. The record dates are 27 March and 25 September. The dividend corresponds to a yield of 3.4% (3.3) based on the share price at the end of the period.
Share capital
At 30 September 2023, the share capital in Platzer was distributed among 20 million Class A shares with 10 votes per share, and 99,934,292 Class B shares carrying one (1) vote per share. Platzer owns 118,429 of its Class B-shares (118,429). Each share has a quotient value of SEK 0.10.
The long-term net asset value, EPRA NRV, was SEK 121.50 (133.48) per share at the end of the period.
Key metrics per share, SEK
| 2023 | 2022 | 2022 | 2022/2023 | |
|---|---|---|---|---|
| Jan–Sep | Jan–Sep | Jan–Dec | Oct-Sep | |
| Share price at the end of the period | 67.20 | 67.00 | 82.30 | 67.20 |
| Net reinstatement value (EPRA NRV) | 121.50 | 133.48 | 130.12 | 121.50 |
| Net tangible assets (EPRA NTA) | 117.05 | 128.50 | 125.24 | 117.05 |
| Net disposal value (EPRA NDV) | 106.93 | 117.21 | 114.33 | 106.93 |
| Income from property management less nominal tax (EPRA EPS) | 3.20 | 2.41 | 4.74 | 4.55 |
| EPRA Loan-to-Value ratio property, % (EPRA LTV) | 47 | 40 | 43 | 44 |
| Profit/loss after tax 1 | –5.1 | 28.14 | 25.26 | –7.98 |
| Adjusted income from property management after tax 2 | 2.80 | 3.51 | 4.53 | 5.57 |
| Cash flow from operating activities | 3.78 | 3.35 | 5.14 | 5.57 |
| Dividend | – | – | 2.30 | – |
| Number of shares at the balance sheet date, thousand | 119,816 | 119,816 | 119,816 | 119,816 |
| Average number of shares, thousand | 119,816 | 119,816 | 119,816 | 119,816 |
For definitions and calculations of key ratios, see platzer.se
1 There is no dilution effect because there are no potential shares. Refers to result attributable to Parent Company's shareholders.
² Calculated in accordance with dividend policy, see description on page 16.
Major shareholders in Platzer Fastigheter Holding AB (publ) as at 30 September 2023
| Number of Class A | Number of Class | Number of | |||
|---|---|---|---|---|---|
| Name | shares | B shares | shares Share of votes, % Share of equity, % | ||
| Neudi & C:o (formerly Ernström) | 11,000,000 | 6,500,000 | 17,500,000 | 38.9 | 14.6 |
| Länsförsäkringar Göteborg och Bohuslän | 5,000,000 | 11,375,112 | 16,375,112 | 20.5 | 13.7 |
| Länsförsäkringar Skaraborg | 4,000,000 | 2,468,000 | 6,468,000 | 14.2 | 5.4 |
| Family Hielte / Hobohm | 18,019,601 | 18,019,601 | 6.0 | 15.0 | |
| Fourth Swedish National Pension Fund | 7,606,429 | 7,606,429 | 2.5 | 6.3 | |
| Handelsbanken funds | 7,195,726 | 7,195,726 | 2.4 | 6.0 | |
| Länsförsäkringar fondförvaltning AB | 7,101,612 | 7,101,612 | 2.4 | 5.9 | |
| SEB Investment Management | 4,352,862 | 4,352,862 | 1.5 | 3.6 | |
| State Street Bank and Trust Co | 4,087,878 | 4,087,878 | 1.4 | 3.4 | |
| Lesley Invest (incl. private holdings) | 4,030,562 | 4,030,562 | 1.3 | 3.4 | |
| Other shareholders | 27,078,081 | 27,078,081 | 9.0 | 22.6 | |
| Total number of shares outstanding | 20,000,000 | 99,815,863 | 119,815,863 | 100.0 | 100. 0 |
| Buyback of own shares | 118,429 | 118,429 | |||
| Total number of registered shares | 20,000,000 | 99,934,292 | 119,934,292 |
Cash flow statement
| Cash flow statement, condensed | 2022 | 2022 | 2022/2023 | |
|---|---|---|---|---|
| SEK million | 2023 Jan–Sep |
Jan–Sep | Jan–Dec | Oct-Sep |
| Operating activities | ||||
| Operating surplus | 813 | 709 | 939 | 1,043 |
| Central administration | –38 | –38 | –56 | –56 |
| Net financial income/expense | –352 | –171 | –245 | –426 |
| Tax paid | –20 | –56 | –72 | –36 |
| Cash flow from operating activities before changes in working capital |
403 | 444 | 566 | 525 |
| Change in current receivables | 74 | –222 | –216 | 80 |
| Change in current liabilities | –25 | 179 | 266 | 62 |
| Cash flow from operating activities | 452 | 401 | 616 | 667 |
| Investing activities | ||||
| Investments in existing investment properties | –997 | –1,026 | –1,412 | –1,383 |
| Acquisition of investment properties | –1,462 | – | – | –1,462 |
| Disposal and reclassification of investment properties | – | – | 3,011 | 3,011 |
| Acquisition/disposal of investments in associates | 125 | –241 | –357 | 9 |
| Other investments | –10 | –2 | –2 | –10 |
| Cash flow from investing activities | –2,344 | 1,578 | 1,240 | –2,682 |
| Financing activities | ||||
| Change in non-current receivables | – | – | –217 | –217 |
| Change in interest-bearing liabilities | 2,131 | –1,836 | –916 | 3,051 |
| Change in non-current liabilities | –11 | 94 | –413 | –518 |
| Dividend | –275 | –264 | –264 | –275 |
| Cash flow from financing activities | 1,845 | –2,006 | –1,810 | 2,041 |
| Cash flow for the period | –47 | –27 | 46 | 26 |
| Cash and cash equivalents at the beginning of the period | 217 | 171 | 171 | 144 |
| Cash and cash equivalents at the end of the period | 170 | 144 | 217 | 170 |
Unused overdraft facilities amounted to SEK 100 million (100) and unused credit facilities amounted to SEK 2,100 million (2,090). Comparative amounts for unused credit refer to 31 December 2022.
Cash flow from operating activities for the period amounted to SEK 452 million (401). Changes in working capital impacted cash flow by SEK 49 million (–43). See page 11 for further comments on operating activities.
Investments in existing properties in the period amounted to SEK 997 million (1,026). No properties were sold in the period. In the second quarter, we acquired three properties from our joint venture, Sörred Logistikpark, as well as part of a property in Södra Änggården. Cash flow from investing activities amounted to SEK –2,344 mkr (1,578). Cash flow from financing activities amounted to SEK 1,845 mkr (–2,006), of which SEK 2,131 million was attributable to increased borrowing. Cash and cash equivalents decreased by SEK –47 million (–27) in the period and totalled SEK 170 million (144) as at the balance sheet date.
Key performance indicators Quarterly summary
| 2023 Jan-Sep |
2022 Jan-Sep |
2022 Jan–Dec |
2022/2023 Oct-Sep |
|
|---|---|---|---|---|
| Financial | ||||
| Debt/equity ratio (times) | 1.1 | 0.8 | 0.8 | 1.1 |
| Interest coverage ratio (times) | 2.2 | 4.0 | 3.6 | 2.3 |
| Loan-to-value ratio, % | 49 | 40 | 44 | 49 |
| Equity/assets ratio, % | 42 | 48 | 47 | 42 |
| Return on equity, % | –3.1 | 26.2 | 24.5 | –7.1 |
| Property-related | ||||
| Yield, % | 3.9 | 3.6 | 3.5 | 3.8 |
| Surplus ratio, % | 77 | 77 | 76 | 76 |
| Economic occupancy rate, % | 92 | 92 | 92 | 92 |
| Rental value, SEK/sq. m. | 1,860 | 1,757 | 1,715 | 1,824 |
| Lettable area, sq. m. (thousand) * | 890 | 777 | 797 | 834 |
* Lettable area including associates 937,000 sq. m.
For definitions and calculations of key ratios, see Financial data on our website, platzer.se https://investors.platzer.se/en/financial-data
| 2023 | 2022 | 2021 | ||||||
|---|---|---|---|---|---|---|---|---|
| SEK million | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 |
| Rental income | 373 | 341 | 350 | 308 | 308 | 302 | 311 | 304 |
| Property costs | –97 | –69 | –84 | –78 | –66 | –69 | –77 | –76 |
| Operating surplus | 276 | 272 | 266 | 230 | 242 | 233 | 234 | 228 |
| Central administration | –12 | –14 | –15 | –19 | –9 | –15 | –15 | –18 |
| Share of profit/loss of associates | –22 | –11 | –36 | –97 | –40 | 110 | 177 | 19 |
| Net financial income/expense | –142 | –113 | –97 | –78 | –60 | –54 | –53 | –54 |
| Profit/loss including share of profit/loss of joint ven tures and associates |
100 | 134 | 118 | 36 | 133 | 274 | 344 | 176 |
| – of which income from property management | 134 | 151 | 161 | 139 | 184 | 174 | 173 | 159 |
| Change in value, investment properties | –503 | –620 | 0 | –230 | 253 | 1,602 | 937 | 492 |
| Change in value, financial instruments | 62 | 44 | –87 | –24 | 107 | 248 | 340 | 41 |
| Change in value, financing arrangements | – | – | – | –146 | –94 | 17 | 3 | –140 |
| Profit/loss before tax | –341 | –442 | 31 | -364 | 399 | 2,141 | 1,624 | 569 |
| Tax on profit/loss for the period | 59 | 87 | –4 | 17 | –123 | –417 | –250 | –111 |
| Profit/loss for the period | –282 | –355 | 27 | –347 | 276 | 1,724 | 1,374 | 458 |
| Investment property | 28,350 28,574 | 27,387 | 26,994 | 27,002 | 26,955 | 25,529 | 26,031 | |
| Yield, % | 4.0 | 3.9 | 3.9 | 3.4 | 3.6 | 3.5 | 3.6 | 3.6 |
| Surplus ratio, % | 74 | 80 | 76 | 75 | 79 | 77 | 75 | 75 |
| Economic occupancy rate, % | 93 | 91 | 92 | 92 | 91 | 92 | 92 | 91 |
| Return on equity, % | –0.3 | –0.2 | 3.4 | –1.6 | 5.1 | 19.7 | 18.4 | 8.3 |
| EPRA Loan-to-Value ratio property, % (EPRA LTV) | 47 | 47 | 44 | 43 | 41 | 40 | 46 | 50 |
| Net reinstatement value per share, SEK (EPRA NRV) | 121.50 125.10 | 129.31 | 130.12 | 133.48 | 131.72 | 116.11 | 108.65 | |
| Net tangible assets per share, SEK (EPRA NTA) | 117.05 120.46 | 124.42 | 125.24 | 128.50 | 126.45 | 111.89 | 104.54 | |
| Net disposal value per share, SEK (EPRA NDV) | 106.93 109.30 | 112.26 | 114.33 | 117.21 | 114.93 | 100.52 | 91.28 | |
| Income from property management less nominal tax per share, SEK (EPRA EPS) |
0.98 | 1.07 | 1.17 | 1.01 | 1.32 | 1.22 | 1.18 | 1.18 |
| Share price, SEK | 67.20 | 79.90 | 80.40 | 82.30 | 67.00 | 66.20 | 116.40 | 135.60 |
| Earnings per share after tax, SEK | –2.35 | –2.96 | 0.23 | –2.90 | 2.30 | 14.39 | 11.47 | 3.82 |
| Operating cash flow per share, SEK | 0.94 | 2.30 | 0.53 | 1.79 | 0.95 | 0.43 | 1.04 | 1.79 |
PARENT COMPANY
Parent Company
The Parent Company does not own property but instead manages certain groupwide functions relating to management, strategy and financing. Parent Company revenue consists entirely of invoicing for services to Group companies.
| SEK million | 2023 Jan–Sep |
2022 Jan–Sep |
2022 Jan–Dec |
|---|---|---|---|
| Net sales | 12 | 12 | 15 |
| Operating expenses | –13 | –11 | –15 |
| Net financial income/expense | 141 | 575 | 990 |
| Change in value, financial instruments | 19 | 695 | 671 |
| Profit before tax and appropriations | 159 | 1,271 | 1,661 |
| Appropriations | –91 | – | –22 |
| Tax | 20 | –143 | –134 |
| Profit for the year 1 | 88 | 1,128 | 1,505 |
1 The Parent Company has no items of other comprehensive income and total comprehensive income is therefore the same as profit for the year.
Parent Company, Balance sheet, condensed
| SEK million | 30 Sep 2023 | 30 Sep 2022 | 31 Dec 2022 |
|---|---|---|---|
| Assets | |||
| Participations in Group companies | 1,962 | 1,886 | 1,962 |
| Other non-current financial assets (primarily financing of Group companies) | 4,699 | 4,428 | 4,684 |
| Receivables from Group companies | 7,442 | 6,044 | 6,368 |
| Other current assets | 79 | 25 | 29 |
| Cash and cash equivalents | 4 | 1 | 3 |
| Total assets | 14,186 | 12,384 | 13,046 |
| Equity and liabilities | |||
| Equity | 4,621 | 4,428 | 4,809 |
| Non-current liabilities | 5,791 | 3,757 | 3,978 |
| Liabilities to Group companies | 2,843 | 4,175 | 3,257 |
| Current liabilities | 931 | 24 | 1,002 |
| Total equity and liabilities | 14,186 | 12,384 | 13,046 |
MARKET OUTLOOK
Gothenburg – stronger than the rest of the country
International economic activity is expected to remain weak in 2023 and 2024. According to the IMF, both inflation and interest rates will decline more slowly than previously forecast. The Swedish economy is expected to follow a similar trend and there are also signs that the labour market is starting to deteriorate. Interest rates are not likely to start falling until the second half of next year, which will continue to hold back household consumption and the residential property market. At the same, most indicators suggest a relatively soft landing for the Gothenburg economy.
In its September forecast, the Swedish National Institute of Economic Research (NCIR) wrote for the first time that Sweden is in a recession. High inflation and rising interest rates have eroded households' purchasing power while weak external demand is starting to affect exports. This will cause the recession to deepen next year and will also impact the labour market. Although inflation is clearly on the way down, it is still well above Riksbanken's target. Riksbanken is therefore expected to raise the policy rate once more in November, after which it is expected to remain unchanged until the second half of next year.
The weak economic outlook is reflected in the Purchasing Manager Index (PMI) for industry, which was at 43.3 in September. This was the fourteenth month in a row that the index was outside the so-called growth zone. The index for the service sector declined to 46.3. In particular, the indices for new orders received and backlog of orders declined, indicating that the sector is entering a slower period.
Gothenburg economy
Gothenburg economic activity in the second quarter was moderately weak, which was better than Sweden as a whole. The strongest performance was in the export industry, while the construction and retail sectors were struggling. One of the factors contributing to the economic resilience of Gothenburg and West Sweden as a whole is that the region accounts for 34% of investments in R&D by Swedish industry and commerce.
According to Business Region Göteborg, growth in Gothenburg's 10 largest export markets is expected to amount to 1.5% in 2023 (2022: 2.5%), which is still positive and also slightly higher than the previous forecast.
Following a weak start to the year, import volumes in the Port of Gothenburg recovered in the second quarter, and are expected to continue to show positive performance in the autumn. In particular, Gothenburg is winning market share from other Swedish ports. Overall, goods volumes remain relatively stable, while cruise activity is heading towards a record year, partly thanks to the weak Swedish krona.
In August, unemployment in the Gothenburg region was 5.5% (5.3% in January), still
well below the national unemployment rate of 6.4% and also lower than the 6.3% reported in the Stockholm region. Employment growth is showing signs of a slowdown and unemployment increased in the summer. Although it is too soon to determine what is caused by normal seasonal fluctuations and what is due to weaker economic activity, redundancy rates suggest tougher times ahead in the labour market.
Demand for labour is strongest in energy and environment, knowledge-intensive services, hospitality, finance and insurance, and also in information and communication. In addition, a number of major development projects are underway in the region, the largest of which are Northvolt's and Volvo Cars' investment in a battery plant and R&D centre at Hisingen and Polestar's new global head office at Frihamnen. Business Region Göteborg estimates that these projects together will generate around 8,000 new jobs in the region.
According to the visitor night statistics of Statistics Sweden and the Swedish Agency for Economic and Regional Growth, the number of hotel nights in Gothenburg rose by 1% in July, compared with the same month in the previous year. The weak Swedish krona and a large number of major concerts withstood the effects of bad weather and weaker consumer spending in Sweden.
Global economy
| % | 2022 | 2023 | 2024 |
|---|---|---|---|
| GNP growth | 3.5 | 3.0 | 3.0 |
| Inflation | 8.7 | 6.8 | 5.2 |
Source: IMF World economic Outlook, April 2023
Swedish economy
| % | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| GNP growth | 2.8 | –0.4 | 1.1 | 3.1 |
| Employment | 2.7 | 1.6 | –0.3 | 0.7 |
| Unemployment | 7.5 | 7.5 | 8.2 | 8.3 |
| CPIF (Consumer price index | ||||
| with fixed interest rate) | 7.7 | 6.0 | 2.5 | 1.6 |
| Source: Swedish National Institute of Economic Research (NCIR) |
MARKET OUTLOOK
Offices
RENTAL MARKET
There is no available data for the third quarter, this section is based on information for the second quarter from JLL and our own anlyses. Our assessment is that prime rent levels now are more or less unchanged compared with the same period in the previous year. Any rent increases that have taken place were in new production. Despite the uncertain external environment, there is still strong demand for modern, environmentally certified premises in good locations in Gothenburg. Vacancy levels remain high at 11%, primarily as a result of the large influx of new production on the market in recent years, and this temporary glut has long been factored into estimates. We are seeing a clear "flight to quality" and the occupancy rate in the new production is high. Vacancies in the office sector are therefore not affecting prime office space to the same extent as older properties.
As of this year, new production is falling to volumes well below 30,000 sq. m. per year from 175,000 in 2022. For example, in 2024, no new projects will come on stream in the central business district CBD or rest of the city centre. New projects are due to come on stream on Hisingen and in Mölndal, where our pending acquisition Mimo accounts for the bulk of volume. We can therefore expect vacancies to decline in the
coming years. A deep recession could contribute to a slowdown in demand. In the first nine months of the year, major leases were agreed in Våghuset and Citygate in the City centre excl. CBD, in Regina and Navigationsskolan in CBD, in Uni3 at Norra Älvstranden and in Gamlestaden and the centre of Mölndal. Several leases were signed in Lilla Bommen/Gullbergsvass.
PROPERTY MARKET
Volumes in the Swedish transactions market for office space fell sharply in the first half of the year, compared with the same period in the previous year. There is currently a lull in the Gothenburg market with only a handful of minor transactions, which makes it difficult to assess yields. The rate of new construction of office space is subdued and no major projects were launched in the quarter. Earlier in the year, Vasakronan began construction of Kaj 16, next to the Hisingsbron bridge, which is largely fully let.
Rental market, office space
| Prime Rent (SEK/sq. m.) | Q2 2023 | Q3 2022 |
|---|---|---|
| CBD | 4,200 | 4,150 |
| City centre excl. CBD | 3,500 | 3,400 |
| Norra Älvstranden | 2,800 | 2,800 |
| Mölndal | 2,500 | 2,500 |
| West Gothenburg | 1,300 | 1,300 |
| East Gothenburg | 2,500 | 2,500 |
Source: JLL
Property market, offices
| Prime Yield (%) | Q2 2023 | Q3 2022 |
|---|---|---|
| CBD | 4.25 | 3.80 |
| City centre excl. CBD | 4.90 | 4.10 |
| Norra Älvstranden | 5.50 | 4.60 |
| Mölndal | 6.25 | 5.30 |
| West Gothenburg | 6.75 | 6.40 |
| East Gothenburg | 6.25 | 5.10 |
Source: JLL
Industrial/Logistics
RENTAL MARKET
The logistics rental market is more subdued than before, but demand remains strong in attractive locations. Rent levels are estimated to be unchanged at approx. SEK 900 per sq. m. for new production in the best locations in the Gothenburg area.
In the e-commerce sector, sales fell for the sixth consecutive quarter. However, there are signs of the downturn bottoming out. Online sales for pharmacy, clothing and footwear and sports and leisure increased in the second quarter. At the same time, there are signs of lower stock-keeping in e-commerce, which may impact demand for warehouses. On the plus side, continued stable activity at the Port of Gothenburg is contributing towards maintaining demand for modern logistics facilities in attractive locations.
In the Gothenburg area the main logistics locations are on Hisingen, close to the Volvo companies' factories, the planned battery plant and the port. Other important logistics locations include the area around Landvetter airport and Viared outside Borås.
There were no official records of major leases in the quarter. Since most of the new production is built to order for tenants, the vacancy rate in the segment is low when it comes to modern logistics premises.
PROPERTY MARKET
The industrial and logistics property transactions market was subdued, with a very small number of transactions. Catena acquired 14,100 sq. m. of property in Kungsbacka from BRA Bygg. Earlier in the year, Platzer acquired three properties in Sörreds Logistikpark, while Corem sold two properties in East Gothenburg. Castellum carried out a conditional sale of a property in Arendal. Additonally, Catena acquired Bockasjö in a structured deal.
In the quarter, Panattoni started construction of a 14,300 sq. m. logistics facility in Landvetter. The rate of new production is otherwise lower than before. In addition to the projects Platzer is involved in, Catena is constructing stage 2 at Landvetter airport. In Arendal, NCC and Barings are building a logistics facility of 34,000 sq. m., while Verdion is building a 17,300 sq. m. facility in Bäckebol.
Rental market, industrial/logistics
| Prime Rent (SEK/sq. m.) | Q3 2023 | Q3 2022 |
|---|---|---|
| Stockholm Class A location | 1,000 | 925 |
| Gothenburg Class A location | 900 | 825 |
| Malmö Class A location | 775 | 675 |
Source: Newsec
Property market, industrial/logistics
| Prime Yield (%) | Q3 2023 | Q3 2022 |
|---|---|---|
| Stockholm Class A location | 4.75 | 3.60 |
| Gothenburg Class A location | 4.90 | 3.80 |
| Malmö Class A location | 5.30 | 4.10 |
Source: Newsec
OTHER COMMENTS
Other comments
Employees and organisation
As at 30 September, the number of employees stood at 85. Our operations are divided into business areas based on segments:
-
Business area Offices – should use its leading position in the market to continue to create profitable growth in office space.
-
Business area Industrial/Logistics – its goal is to make Platzer the leading commercial property company in Gothenburg in industrial and logistics property.
Each business area has overall responsibility for property transactions within their respective business areas. Our Group management comprises managers responsible for the following functions: operations development/IT/procurement, business development, finance/accounting/property analysis, communication/marketing/sustainability, HR, business area Offices and business area Industrial/Logistics.
Significant risks and uncertainties
Effects of the war in Ukraine
The continuing war in Ukraine is impacting the property sector in general. We are taking measures to mitigate the impact of rising energy prices on the operation of our properties.
We are continuously carrying out analysis and risk assessment of our own and our tenants' operations in respect of the impact of the war in Ukraine.
Financial risks
Risk and uncertainty in the financial markets is reflected in reduced access to capital and increased cost of credit as a measure to reduce inflation. We are closely following this development in order to mitigate the impact on Platzer. The largest financial risk is limited access to financing and increased credit margins. Platzer's financial policy sets outs the Group's approach to these risks. Underlying strong key ratios together with a good financial position and property with lasting value reduce the risk.
General risks
The general risks and uncertainties that we are primarily exposed to are further exacerbated by increased uncertainty around future inflation and increased costs in general, as well as a risk of a declining rental market. We mitigate the impact by means of regular communication with our tenants, continued cost control and in-depth continuous analyses. We are able to do this thanks to good internal control, well-functioning administrative systems and tried and tested procedures for related processes. Our general risk assessment is described in detail in the 2022 Annual Report on pages 46–50 and 62–63. No significant changes have occurred in our assessment of risks and uncertainties since the 2022 Annual Report.
Related party transactions
The company's ongoing related party transactions are described on page 78 of the 2022 Annual Report. There are no significant transactions with related parties other than what is described here.
Accounting policies
Platzer prepares its consolidated financial statements in accordance with IFRS (International Financial Reporting Standards) as adopted by the EU. The same accounting policies and measurement principles have been applied as in the most recent Annual Report. The Interim Report has been prepared in accordance with IAS 34, Interim Financial Reporting. None of the new or revised IFRS standards or IFRIC interpretations that have come into force in 2023 has had any effect on the Group's financial statements.
The Parent Company's financial statements are prepared according to the Swedish Annual Accounts Act and the Swedish Financial Reporting Board's Recommendation RFR2 Accounting for Legal Entities. The Parent Company applies the same accounting policies and measurement principles as in the most recent annual accounts.
Rounding
Individual amounts and amounts added together are rounded to the nearest whole number in SEK million. Rounding differences may result in tables not adding up.
Significant events after the reporting period
After the end of the reporting period, the Group completed the sale of the property Högsbo 55:10, which was the last residential building right in phase 2 at Södra Änggården.
Gothenburg, 17 October 2023 Platzer Fastigheter Holding AB (publ)
| Charlotte Hybinette Chairman of the Board |
Ricard Robbstål Board member |
|---|---|
| Anders Jarl Board member |
Caroline Krensler Board member |
| Eric Grimlund Board member |
Anneli Jansson Board member |
| Maximilian Hobohm Board member |
Henrik Forsberg Schoultz Board member |
Johanna Hult-Rentsch CEO
Market & Platzer
AUDITORS' REPORT ON REVIEW OF INTERIM FINANCIAL INFORMATION
Auditors' report on review of interim financial information
Platzer Fastigheter Holding AB (publ)
Introduction
We have reviewed the interim condensed financial statements (Interim Report) for Platzer Fastigheter Holding AB (publ) as at 30 September 2023 and for the nine-month period then ended. The Board of Directors and the CEO are responsible for the preparation and presentation of these interim financial statements in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to issue a conclusion on this interim report based on our review.
Scope of review
We conducted our review in accordance with International Standard on Review Engagements ISRE 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and other generally accepted auditing standards in Sweden. The procedures performed in a review do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. The conclusion expressed on the basis of a review therefore does not provide the level of assurance of a conclusion based on an audit.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the Interim Report is not prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act in respect of the Group, and in accordance with the Swedish Annual Accounts Act in respect of the Parent Company.
Gothenburg, 17 October 2023
Öhrlings PricewaterhouseCoopers AB
Johan Rippe Ulrika Ramsvik Authorised Public Accountant Authorised Public Accountant Auditor in charge
Platzer in brief
Platzer is one of the largest and leading commercial property companies in Gothenburg. We are proud to be participating in the creation, preservation and regeneration of the best locations in Gothenburg. We own and develop 75 properties with a total lettable area of 938,000 sq. m., worth SEK 28 billion.
How we create value
- Equity/assets ratio: > 30%
- Loan-to-value ratio: not to exceed 50% over time
- Annual increase in net asset value: >10%
- Interest coverage ratio: > 2 (times)
- Return on investment, project investments: >20%
Calendar
2024
,
Year-end Report 2023 26 January at 08:00 (CET) Annual General Meeting 20 March at 15:00 Interim Report January – March 17 April at 08:00
CEO's comment Sustainability Operations Results & Financial position Financing & Share Market & Platzer Platzer Q3 2023 25
For further information, please visit platzer.se or contact Johanna Hult Rentsch, CEO, on +46 (0)709 99 24 05 – Fredrik Sjudin, CFO, on +46 (0)721 27 77 78
Photos: Marie Ullnert (Cover and pages 2, 6, 8, 14,) OkiDoki (9), Philip Liljenberg (17, 23), Markus Esselmark (19)
Platzer Fastigheter Holding AB (publ) PO Box 211, SE-401 23 Gothenburg |Visiting address: Lilla Bommen 8 +46 (0)31 63 12 00 | [email protected] | platzer.se Registered office of Board of Directors: Gothenburg | Corporate ID No: 556746–6437