Quarterly Report • Apr 25, 2023
Quarterly Report
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INTERIM REPORT JANUARY–MARCH 2023
Nyfosa will be the Swedish property company that is the best at creating value.
With its opportunistic approach and its agile, market-centric and bold organization, Nyfosa will create value by accumulating sustainable cash flows and continuously evaluating new business opportunities.
NET LEASING JAN–MAR 2022
1.05
jan–mar
2019
15.2
%
19.3 20.9
DISTRIBUTABLE CASH FLOW PER SHARE
6.91 7.64 8.35
2020 2021 2022 2023
2019
4.73
SEK
-0.1
R12
9.7
2020 2021 2022 2023
GROWTH IN INCOME JAN–MAR 2023
G R O W T H I N N E T O P E R A T I N G I N C O M E JAN–MAR 2023 +23.5%
2
Mar 31
| Jan–Mar | Rolling | Full-year | ||
|---|---|---|---|---|
| 2023 | 2022 | 12 months | 2022 | |
| Income, MSEK | 895 | 714 | 3,332 | 3,151 |
| Net operating income, MSEK | 556 | 450 | 2,197 | 2,092 |
| Surplus ratio, % | 62.1 | 63.1 | 65.9 | 66.4 |
| Profit from property management1, MSEK | 303 | 360 | 1,476 | 1,533 |
| Distributable cash flow, MSEK | 200 | 256 | 1,539 | 1,596 |
| Profit/loss, MSEK | -333 | 1,323 | 37 | 1,694 |
| Interest-coverage ratio, multiple | 1.9 | 3.5 | 2.9 | 3.4 |
| Property value on balance-sheet date, MSEK | 41,182 | 37,811 | 40,446 | |
| NAV on balance-sheet date, MSEK | 18,913 | 19,740 | 19,250 | |
| Net loan-to-value ratio of properties on balance-sheet date, % | 59.0 | 53.4 | 57.7 | |
| Key figures per share | ||||
| Profit from property management1, SEK | 1.51 | 1.84 | 7.48 | 7.80 |
| Distributable cash flow, SEK | 1.05 | 1.34 | 8.06 | 8.35 |
| Profit/loss after dilution, SEK | -1.82 | 6.85 | -0.07 | 8.61 |
| NAV on balance-sheet date, SEK | 99.01 | 103.34 | 100.78 |
1) From October 1, 2022, the former earnings measure Profit from property management was renamed Profit after financial income and expenses, and the former earnings measure Profit from property management, excluding changes in value and tax in joint ventures was renamed Profit from property management. This change provides better comparability with other listed Swedish property companies with significant holdings of participations in joint ventures.
DURING THE QUARTER, NYFOSA ACQUIRED and closed on a portfolio of 13 properties in Sweden including grocery and discount stores, warehouses and light industrial buildings. The majority of the properties are situated where Nyfosa currently has a local presence, in well-established locations such as Eskilstuna, Örebro, Linköping, Gävle, and Örnsköldsvik. Major tenants include Willys, Dollarstore, Rusta and ICA.
The properties, which have a leasable area of just over 50 thousand sqm, are fully let with a surplus ratio of 83 percent. The total average remaining lease term is 4.4 years and annual rental value is MSEK 62.5.
NYFOSA YEAR-END REPORT JANUARY–DECEMBER 2022 3 NYFOSA INTERIM REPORT JANUARY-MARCH 2023
It has been a busy first quarter for Nyfosa in terms of both acquiring and selling properties, which were all aimed at strengthening and increasing cash flows in the portfolio. In addition, green bonds were issued, which means we have taken care of the majority of the bond loans maturing in April 2024. This further strengthens our financing. Our feet remain firmly on the ground concerning the ongoing uncertainty on both the markets and interest rate movements, but I can clearly state that we remain well situated to continue being active on the market. As always, there is plenty for Nyfosa to do.
The transaction market remains cautious, but if you are in the market, you can always find opportunities. During the quarter, Nyfosa acquired a portfolio consisting of grocery and discount retail, warehousing, and light manufacturing properties in well-established locations in Sweden for MSEK 706. Through this acquisition, we are able to strengthen our cash flow with high-yield properties. After the end of the quarter, we divested properties for MSEK 555 in Österåker, Malmö, Helsingborg, and Jönköping. The properties were sold above book value on the balance sheet date, which gives a realized profit of approximately MSEK 45 in the second quarter.
Net leasing was positive during the quarter and includes a number of new leases in Finland. Whilst we remain vigilant of developments in the economy, we take the view that our tenants, in general, are able to absorb the rent increases sufficiently well and that demand continues for our premises. Rental income increased by 25.4 percent while net operating income increased by 23.5 percent compared to the same period the previous year, whereby costs during the quarter were heavily affected by a succession of cold months combined with high electricity prices.
We strengthened our financing during the quarter, which is particularly important given the current market conditions. Through the issue of green bonds of MSEK 850 in combination with redeeming bonds maturing in 2024, we have taken care of 75 percent of the upcoming maturity. As such, only
MSEK 275 in bond loans remain to be refinanced next year. The issue was met by a positive response from the market and gives an indication that bond investors are again considering properties as an investment option.
The demand for returns on property valuations continued to rise slightly during the quarter and we note a limited decrease in value in the property portfolio of 0.9 percent. If we look at the development since year-end 2021, yield requirements have moved from 5.8 percent to 6.5 percent today, with the values being affected only to a limited extent, down 1.9 percent, thanks to counterweighting in the form of rent indexation, projects, and renegotiations.
Both Stibor and Euribor have risen by over 3 percentage points since the same period last year. This continues to weigh down earnings capacity, although our interest rate hedge mitigates the impact, whereby 42 percent of the total debt portfolio is hedged. How the policy rates are determined in the future will be critical for how the property market develops. Nyfosa will continue its clear focus on cash flow. We believe it is important that we have demonstrated our ability, despite the turbulent market, to continue to act when sound deals are offered – both in terms of buying and selling – all aimed at growing and strengthening our cash flows over time.
Stina Lindh Hök, CEO
Mar 31
Equity/assets ratio
Loan-to-value ratio
FINANCIAL RISK LIMITS
Long term at least a multiple of 2.
By 2025, properties corresponding to 50 percent of the property value will have sustainability certification and 100 percent by 2030.
70 properties with a value of SEK 11.8 billion had sustainability certification, corresponding to 29 percent of the total property value.
By 2025, energy consumption per sqm will be reduced by 10 percent compared with 2020.
Energy consumption in the starting portfolio for 2020 was 117.6 kWh per sqm. Energy consumption in 2022 was 110.9kWh per sqm, corresponding to a 6 percent decline for the comparable property portfolio1.
Nyfosa will act to minimize the operation's carbon emissions.
Carbon emissions in 2022 in the comparable property portfolio declined1 43 percent per sqm compared with 2021. The decline was primarily an effect of investments in renewable energy and greater focus on streamlined consumption.
1) Comparable property portfolio refers to the properties that Nyfosa has owned for the entire period. Properties bought and sold during the period are excluded.
The sustainability targets are measured and updated on an annual basis.
SEK
4.00 3.80 4.00
At least 40 percent of the distributable cash flow is to be distributed to the owners. Dividends are, on each occasion, to be considered in light of the company's business opportunities and may comprise a distribution in kind, buyback or cash dividend.
SEK 4.00
Income amounted to MSEK 895 (714), up 25.4 percent compared with last year. The larger portfolio was the main reason for the growth. Growth in the like-for-like portfolio amounted to MSEK 69.
The economic leasing rate for the period was 92.2 percent (94.6). In the like-for-like property portfolio, the economic leasing rate was 92.8 percent (94.9).
| Income, MSEK | Jan–Mar 2023 |
Jan–Mar 2022 |
|---|---|---|
| Like-for-like portfolio | 755 | 686 |
| Acquisitions and divestments | 140 | 28 |
| Total | 895 | 714 |
Rent receivables for rents invoiced were settled in accordance with the contractual terms, except for a small number of invoices. About 92 percent of the annual rental income in Nyfosa's leases have clauses on annual indexation. The majority of these indexation clauses refer to 100 percent of the base rent and are to follow the CPI, or equivalent, for October. The upward indexation of the annual rent for 2023 impacted earnings from January 1, 2023, which resulted in an increase in rental income of approximately MSEK 58 for the period.
Operating expenses amounted to MSEK 229 (166), which is an increase of 37.8 percent. The increase was due to a larger portfolio and higher energy prices in both Sweden and Finland. About 50 percent of total costs for electricity, heating and cooling are charged on to tenants.
Maintenance costs amounted to MSEK 39 (37), which is a marginal increase of 6.4 percent compared with last year.
Costs for property administration amounted to MSEK 31 (28), with the increase due to a larger property portfolio.
Net operating income amounted to MSEK 556 (450), up 23.5 percent. The surplus ratio was 62.1 percent (63.1) and was primarily impacted by the higher energy prices during the quarter.
| Net operating income, MSEK | Jan–Mar 2023 |
Jan–Mar 2022 |
|---|---|---|
| Like-for-like portfolio | 457 | 435 |
| Acquisitions and divestments | 99 | 15 |
| Total | 556 | 450 |
Costs for central administration amounted to MSEK 47 (36).
Share in profit of joint ventures amounted to MSEK -45 (266), comprising profit from property management of MSEK 57 (59), changes in value and tax of MSEK -111 (207) and other MSEK 9 (0).
Financial income and expenses amounted to MSEK –268 (–116). The increase was due to higher net debt, amounting to MSEK 24,291 (20,173) on the balance-sheet date, and higher interest rates. The average interest expense, excluding opening charges, amounted to 4.2 percent (1.9) on the balance-sheet date.
| Jan–Mar | ||
|---|---|---|
| MSEK | 2023 | 2022 |
| Income | 895 | 714 |
| Property expenses | ||
| Operating expenses | -229 | -166 |
| Maintenance costs | -39 | -37 |
| Property tax | -40 | -32 |
| Property administration | -31 | -28 |
| Net operating income | 556 | 450 |
| Central administration | -47 | -36 |
| Other operating income and expenses | 5 | 2 |
| Share in profit of joint ventures | -45 | 266 |
| - of which, profit from property management | 57 | 59 |
| - of which, changes in value | -102 | 274 |
| - of which, tax | -8 | -68 |
| - of which, other | 9 | 0 |
| Financial income and expenses | -268 | -116 |
| Profit after financial income and expenses1 | 201 | 567 |
| - Of which, profit from property manage | 303 | 360 |
| ment1 | ||
| Changes in value of properties | -522 | 863 |
| Changes in value of financial instruments | -29 | 110 |
| Profit before tax | -350 | 1,540 |
| Tax | 17 | -217 |
| Profit | -333 | 1,323 |
1) From October 1, 2022, the former earnings measure Profit from property management was renamed Profit after financial income and expenses, and the former earnings measure Profit from property management, excluding changes in value and tax in joint ventures was renamed Profit from property management. This change provides better comparability with other listed Swedish property companies with significant holdings of participations in joint ventures.
As per March 31, 42 percent of the total debt portfolio was hedged with an interest-rate cap or swap. The average interest-rate cap was 1.56 percent (1.59) and the average swap was 1.86 percent (-).
The interest-coverage ratio for the period was a multiple of 1.9 (3.5), while the interest-coverage ratio for the last 12 months was a multiple of 2.9.
| Financial income and expenses, MSEK | Jan–Mar 2023 |
Jan–Mar 2022 |
|---|---|---|
| Interest income and interest expenses | -251 | -102 |
| Allocated borrowing costs, etc. | -17 | -13 |
| Total | -268 | -116 |
Profit from property management amounted to MSEK 303 (360) or SEK 1.51 per share (1.84), down 17.6 percent. The lower profit from property management was primarily impacted by higher energy prices and interest rate levels, which could be partly offset by rent indexation.
Changes in values of properties amounted to MSEK –522 (863).
The yield requirements of the valuations increased during the period as an effect of macroeconomic developments. The negative valuation effect caused by the higher yield requirements was partly offset by the improved future net operating income due to new leases, renegotiations and rent indexation.
The weighted yield requirement for externally valued properties on March 31, 2023 was 6.51 percent (5.82). In last year's valuation on December 31, 2022, the weighted yield requirement was 6.39 percent.
All properties are valued by external independent appraisers at every quarterly closing, except for the properties that were closed on in the past quarter.
Changes in value from financial instruments amounted to MSEK -29 (110), and refer to interest-rate caps and swaps that declined in value due to changes in market interest rates.
Tax for the period amounted to MSEK 17 (-217) and largely comprised positive deferred tax attributable to the negative revaluation of the property portfolio and financial instruments. The effective tax rate was 4.7 percent (14.1). The deviation from the nominal tax rate of 20.6 percent was mainly due to non-deductible interest, the fact that profit from participations in joint ventures comprised profit after tax, and thus did not constitute taxable income for Nyfosa, and also that the utilization of loss carryforwards changes over time.
Loss for the period amounted to MSEK -333 (1,323) or SEK -1.82 per share before (6.87) and after (6.85) dilution. The decrease was mainly an effect of higher energy prices and interest rate levels as well as negative changes in value. Distributable cash flow amounted to SEK 1.05 per share (1.34).
During the period, operating activities contributed MSEK 485 (398) in positive cash flow, which was attributable to the wholly owned portfolio.
Cash flow allocated to investments amounted to MSEK -1,162 (144). Taking possession of and vacating properties, both directly and indirectly via companies, impacted cash by a net MSEK -942 (330). Investments in existing properties amounted to MSEK -193 (-88). Investments in participations in joint ventures amounted to MSEK 0 (-76).
Cash flow from financing activities amounted to MSEK 412 (315) and was attributable to net interest-bearing loans of MSEK 592 (469), repurchases of warrants MSEK -7 (-) and dividends to shareholders of MSEK -181 (-143).
Total cash flow for the period was MSEK -264 (858).
| Total cash flow, MSEK | Jan–Mar 2023 |
Jan–Mar 2022 |
|---|---|---|
| Cash flow from operating activities | 485 | 398 |
| – of which distributable cash flow | 200 | 256 |
| Cash flow from investing activities | -1,162 | 144 |
| Cash flow from financing activities | 412 | 315 |
| Total cash flow | -264 | 858 |
The distributable cash flow is based on profit before tax adjusted for non-cash items, such as revaluation effects and share in profit of joint ventures.
Dividends received from participations in joint ventures, interest paid to hybrid bond holders and tax paid are included in cash flow.
The company's target is to achieve annual growth in distributable cash flow per share of 10 percent over time.
Distributable cash flow amounted to SEK 8.06 per share for the last 12 months compared with SEK 8.35 per share for the 2022 financial year, which is a decline of 3.5 percent. The decline was primarily impacted by higher energy prices and interest rate levels, which could be partly offset by rent indexation during the period.
The average growth per year for 2019-2022 was 19.6 percent.
| Jan–Mar | ||
|---|---|---|
| MSEK | 2023 | 2022 |
| Profit before tax | -350 | 1,540 |
| Adjustments for non-cash items | 609 | -1,224 |
| Dividend from holdings in joint ventures | - | - |
| Interest paid to hybrid bond holders | -15 | -6 |
| Income tax paid | -44 | -54 |
| Distributable cash flow | 200 | 256 |
| – per share, SEK | 1.05 | 1.34 |
Distributable cash flow from the wholly owned property portfolio, MSEK
| Apr 1, 2023 |
Jan 1, 2023 |
|---|---|
| 3,873 | 3,739 |
| -338 | -280 |
| 3,536 | 3,459 |
| -982 | -907 |
| -130 | -136 |
| 2,423 | 2,416 |
| -150 | -133 |
| 235 | 257 |
| -1,103 | -913 |
| 1,406 | 1,627 |
| -58 | -50 |
| 1,348 | 1,577 |
| 7.06 | 8.26 |
Current earnings capacity is presented on a 12-month basis and is to be considered solely as a hypothetical instantaneous impression on a given date. It is presented only for illustrative purposes. The aim is to present annualized income and expenses based on the property portfolio, borrowing costs, capital structure and organization at a given point in time. The earnings capacity does not include an assessment of future periods in respect of rents, vacancy rates, property expenses, interest rates, changes in value or other factors impacting earnings, other than the index-linking found in existing leases. The current earnings capacity must be considered together with other information in the interim report.
EARNINGS CAPACITY
Current earnings capacity per share, SEK
| MSEK | Mar 31, 2023 |
Dec 31, 2022 |
|---|---|---|
| Property value on balance-sheet date, MSEK | 41,182 | 40,446 |
| MSEK | Apr 1, 2023 |
Jan 1, 2023 |
| Rental value, MSEK | 3,873 | 3,739 |
| Leasable area, 000s sqm | 3,075 | 3,012 |
| No. of properties on balance-sheet date | 522 | 504 |
| Economic occupancy rate, % | 91.9 | 93.1 |
| Remaining lease term, years | 3.8 | 3.7 |
| Surplus ratio, % | 68.5 | 69.9 |
| Yield, % | 5.9 | 6.0 |
| Yield, excl. property admin, % | 6.2 | 6.3 |
Nyfosa finances its assets through equity, bank loans with Nordic banks and loan funds, and hybrid bonds issued in the Swedish capital market. Equity attributable to the Parent Company's shareholders amounted to MSEK 18,064 (18,565) on the balance-sheet date, of which hybrid bonds was MSEK 762.5 (800).
Interest-bearing loans from the credit and capital markets amounted to MSEK 24,721 (21,552), including allocated arrangement fees, of which bank loans with properties as collateral represented 94 percent (91), corresponding to MSEK 23,121 (19,705), and senior unsecured bonds 6 percent (9), corresponding to MSEK 1,600 (1,848).
The bonds are green bonds issued under a green finance framework. This framework has been drawn up in accordance with the Green Bond Principles set by the International Capital Markets Association (ICMA) and has been audited by an independent third party, CICERO Shades of Green.
The total net loan-to-value ratio of the properties was 59.0 percent (53.4). To support liquidity and growth, the company has four prearranged lines of credit with banks, which have not always been fully utilized. The total scope in these revolving credit facilities can amount to a maximum of MSEK 2,476 (4,075). This means that, against collateral in existing properties, Nyfosa can rapidly increase its borrowing at fixed terms to, for example, finance property acquisitions. After having utilized the credit scope, the company has the opportunity to renegotiate credit facilities to a standard bank loan, at which point the unutilized portion of the facilities increases. On the balance-sheet date, the company had utilized MSEK 1,192 (1,672) the total amount granted of MSEK 1,317 (1,672) against collateral in existing properties. To utilize the remaining MSEK 1,159 (2,403) under this credit framework, acquired properties are used as collateral. In addition to the revolving credit facilities, the company has unutilized overdraft facilities with banks totaling MSEK 200 (200).
New bank loans of a total of MSEK 691 were raised during the period in connection with financial closing of property acquisitions. Bonds of MSEK 825 were repurchased after the end of the period on the basis of a new issue of green
| Mar 31 | Dec 31 | ||
|---|---|---|---|
| 2023 | 2022 | 2022 | |
| Loans with credit institutions, MSEK | 23,121 | 19,705 | 22,433 |
| Bonds, MSEK | 1,600 | 1,848 | 1,600 |
| Debt/equity ratio, multiple | 1.4 | 1.1 | 1.3 |
| Average interest1, % | 4.2 | 1.9 | 3.5 |
| Average remaining fixed-rate period, years |
0.7 | 1.1 | 1.0 |
| Average remaining loan maturity period, years |
2.6 | 2.5 | 3.2 |
| Interest-rate hedged portion of liabilities, % | 42 | 47 | 42 |
| Average interest-rate cap, % | 1.6 | 1.6 | 1.6 |
| Average interest swap, % | 1.9 | - | 1.6 |
| Fair value of derivatives, MSEK | 367 | 131 | 372 |
| MSEK | Frame work |
Amount granted |
Amount utilized |
Unutilized amount |
|---|---|---|---|---|
| Total | 2,476 | 1,317 | 1,192 | 125 |
| AVAILABLE LIQUIDITY | Mar 31 | Dec 31 | ||
| MSEK | 2023 | 2022 | 2022 | |
| Cash and cash equivalents | 430 | 1,380 | 690 | |
| Unutilized revolving credit facility1 | 125 | 0 | 265 | |
| Unutilized overdraft facilities | 200 | 200 | 200 | |
| Total | 755 | 1,580 | 1,155 |
1) Unutilized and previously granted loans on the balance-sheet date with existing properties as collateral. The loans are available to the company at short notice.
| Jan–Mar | Full-year | ||
|---|---|---|---|
| MSEK | 2023 | 2022 | 2022 |
| Interest-bearing liabilities at the beginning of the year |
24,033 | 21,045 | 21,045 |
| Bank loans raised | 691 | 1,310 | 9,751 |
| Repayment of bank loans | -79 | -808 | -6,770 |
| Bond loans issued | - | 100 | 600 |
| Bond loans repurchased | - | -125 | -873 |
| Changes in borrowing fees | 13 | 8 | -13 |
| Translation effect, currency | 62 | 21 | 292 |
| Interest-bearing liabilities at end of the year |
24,721 | 21,552 | 24,033 |
1) Interest expense excluding opening charges and ground rent.
bonds of MSEK 850. Following the repurchase, the remaining existing bonds amounted to MSEK 775, of which MSEK 275 matures in April 2024 and MSEK 500 in January 2025. The newly issued bond is a three-year, green, senior unsecured bond of MSEK 850 with a floating interest rate of threemonth STIBOR +550 basis points.
The next loan maturity in the loan portfolio is in November 2023. This is a secured bank loan of MSEK 834.
Nyfosa mainly has floating interest rates in its loan agreements. Exposure to increases in interest rates is managed by making use of derivative instruments, currently interest-rate caps and swaps. The remaining term of signed derivative agreements was 1.9 years (3.0) on the balance-sheet date. Interest-rate caps offer the holder security in the form of a maximum impact on total interest expenses if STIBOR 3M and EURIBOR 6M rise. However, rising interest rates that do not reach the interest-rate cap will have full impact on earnings. The interest-rate cap is 1.5–2.0 percent (1.5–2.0), and an average of 1.56 percent (1.59).
Interest-rate swaps already exist in the Finnish loan portfolio for a nominal MSEK 1,136 (-) and were also entered into in the Swedish loan portfolio for a nominal MSEK 500 during the period. Under these derivatives, Nyfosa pays a fixed annual rate of 1.86 percent (-).
As per March 31, 2023, 42 percent (47) of the total debt portfolio was hedged with an interest-rate cap or swap.
The sensitivity analysis shows that the estimate impact on earnings of STIBOR 3M and EURIBOR 6M changing 1.0 percentage point is an increase of MSEK 30 (187) in interest expenses, given existing derivative agreements. A rise in market rates of 2.0 percentage points would charge earnings with an MSEK 163 (376) increase in higher interest expenses, given existing derivative agreements. In both examples, the interest-rate cap means that the higher rate does not have a full impact on the statement of profit/loss.
March 31, 2023
| Earnings effect of change in average interest on debt, MSEK3 | Change | Mar 31, 2023 |
|---|---|---|
| Interest expenses assuming current fixed-interest periods and changed interest rates1 | +/–2% points | +163/–431 |
| Interest expenses assuming current fixed-interest periods and changed interest rates1 | +/–1% point | +30/–313 |
| Interest expenses assuming change in average interest rate2 | +/–1% point | +/–248 |
| Revaluation of fixed-income derivatives attributable to shift in interest rate curves | +/–1% point | +/–154 |
1) Taking into account existing derivative agreements.
2) Average rate increases/decreases by 1 percentage point. Increase/decrease does not take into account eventual effects of the derivative portfolio.
3) Each variable in the table below has been addressed individually and on the condition that the other variables remain constant. The analysis refers to liability against the wholly owned property portfolio and does not pretend to be exact. It is merely indicative and aims to show the most relevant, measurable factors in the specific context.
| Year | Loan maturity, MSEK |
Share, % |
Interest-rate swaps, MSEK |
Interest-rate caps, MSEK |
Derivative volumes, MSEK |
Share of liabilities, % |
|---|---|---|---|---|---|---|
| Within 1 year | 8342 | 3 | 0 | 1,275 | 1,275 | 5 |
| 1–2 years | 10,9103 | 44 | 500 | 5,350 | 5,850 | 24 |
| 2–3 years | 3,525 | 14 | 0 | 1,000 | 1,000 | 4 |
| 3–4 years | 5,553 | 22 | 1,136 | 1,100 | 2,236 | 9 |
| 4–5 years | 2,306 | 9 | 0 | 0 | 0 | 0 |
| >5 years | 1,696 | 7 | 0 | 0 | 0 | 0 |
| Total | 24,824 | 100 | 1,636 | 8,725 | 10,361 | 42 |
1) Interest-bearing liabilities in the statement of financial position include allocated arrangement fees, which is the reason for the deviation between the table and the statement of financial position. 2) Bank loans of MSEK 834 mature in November 2023.
3) Bonds of MSEK 825 were repurchased after the end of the period. Of the remaining bonds of MSEK 775, MSEK 275 matures in April 2024 and MSEK 500 in January 2025. The remaining liabilities refer to bank loans for which MSEK 6,628 matures in 2024, of which MSEK 3,480 matures in the fourth quarter of 2024 and MSEK 2,682 matures in the first quarter of 2025.
Nyfosa has a diverse property portfolio due to the company's focus on cash flow ahead of property category, size or region. The investment strategy has no restrictions, but it does prioritize commercial properties in high-growth municipalities in Sweden and regional cities in Finland. It is here that the company can leverage favorable trends such as a growing population and developments in the local business community.
This geographic diversity in the portfolio provides a large contact network of potential tenants and property players. It also spreads risks favorably, at the same time as properties mainly located outside the central areas of the major cities generally have relatively low rent levels and even demand. Nyfosa has high diversification even in terms of property categories with its property portfolio comprising offices, warehouses/logistics, industry and retail properties, focusing on the big-box and discount sectors.
At the end of the period, the property portfolio comprised 522 properties with a total property value of MSEK 41,182 and a rental value of MSEK 3,873 with a leasable area of 3,075 thousand sqm. In addition to the wholly owned property portfolio, Nyfosa owns 50 percent of the property company Söderport in Sweden and Samfosa in Norway, for which Nyfosa's share of the property value amounts to SEK 7.8 billion. Söderport's and Samfosa's properties are not included in the tables and diagrams below but are presented separately on page 17.
The office properties are situated in Swedish high-growth municipalities such as Karlstad, Luleå, Sundsvall, Västerås, Malmö and Växjö as well as Finnish regional cities such as Jyväskylä and Tampere. Office properties are of high quality and most are centrally located in each town.
The logistics and warehouse premises are situated in towns such as Malmö, Haninge, Karlstad, Borås, Örebro and Växjö as well as regional cities in Finland. A considerable share of the properties are located in local and regional logistics hubs that are prime warehousing areas, and also industrial areas close to city centers.
The retail properties are primarily situated in expansive and popular big-box retail areas in attractive locations close to public transit. These commercial areas are primarily in Luleå, Borås, Västerås, Värnamo and Huddinge. Tenants include mainly established grocery, DIY and gardening and big-box retail. The retail properties are of generally high quality, offer considerable flexibility in terms of use and have a high average occupancy rate. Nyfosa views select retail properties to be a good complement to other property categories in the portfolio.
The industrial properties focusing on light industry are situated in high-growth regions in locations such as Växjö, Värnamo, Tampere, Kuopio and Oulu. A considerable portion of the properties are situated in attractive industrial areas with good access to public communication and a proximity to cities. A sizable portion of the properties are modern buildings with a highly flexible range of applications. The tenants are typically active in such sectors as manufacturing, workshops and service.
This category includes mixed properties with no clear category. There is also a small number of properties, such as premises for hotel operations, schools, restaurants, healthcare and apartments. Properties in this category are located in high-growth regions that have positive population growth, such as Karlstad, Uppsala, Luleå, Stockholm, Örebro, Malmö, Jyväskylä and Helsinki.
522 N O . O F PROPERTIES
SEK 13,394
P R O P E R T Y V A L U E P E R SQM
SEK 1,150 R E N T A L I N C O M E
PER SQM
| Eco | ||||||||
|---|---|---|---|---|---|---|---|---|
| Leasable | nomic | |||||||
| No. of | area1 , |
Rental | Annual | occu | Lease | |||
| Value, | SEK | proper | 000s | value1 , |
income1 , |
pancy | term1 , |
|
| MSEK | per sqm | ties | sqm | MSEK | MSEK | rate1 , % |
years | |
| Region | ||||||||
| Finland | 8,246 | 15,682 | 92 | 526 | 946 | 833 | 88.2 | 3.3 |
| Gothenburg | 385 | 8,596 | 5 | 45 | 48 | 42 | 90.2 | 5.4 |
| Malmö | 2,951 | 11,062 | 53 | 267 | 266 | 240 | 91.6 | 4.0 |
| Mälardalen | 6,000 | 13,742 | 53 | 437 | 532 | 496 | 93.9 | 3.8 |
| Coast of | 5,176 | 12,686 | 70 | 408 | 469 | 428 | 91.6 | 3.8 |
| Norrland | ||||||||
| Småland | 3,618 | 9,731 | 71 | 372 | 356 | 328 | 92.5 | 4.3 |
| Stockholm | 5,224 | 21,803 | 47 | 240 | 400 | 363 | 92.0 | 4.4 |
| Värmland | 3,570 | 15,608 | 48 | 229 | 321 | 306 | 95.7 | 3.0 |
| Other | 6,008 | 10,881 | 83 | 552 | 536 | 499 | 93.8 | 3.8 |
| Total | 41,182 | 13,394 | 522 | 3,075 | 3,873 | 3,536 | 91.9 | 3.8 |
| Property category | ||||||||
| Offices | 20,215 | 17,697 | 182 | 1,142 | 1,866 | 1,660 | 89.2 | 3.0 |
| Logistics/ | 7,161 | 8,636 | 120 | 829 | 641 | 578 | 91.6 | 4.0 |
| Warehouse | ||||||||
| Retail | 5,387 | 12,826 | 81 | 420 | 543 | 513 | 95.6 | 4.9 |
| Industry | 3,436 | 9,010 | 83 | 381 | 359 | 345 | 96.3 | 5.0 |
1) According to current leases on April 1, 2023.
The rental value on April 1, 2023, amounted to MSEK 3,873, of which vacancy rent and discounts was MSEK 338. The share of index-linked annual rental income amounted to about 92 percent. Nyfosa had 6,671 leases including 2,623 leases for garages and parking spaces. The average lease term was 3.8 years. The lease term in the Finnish portfolio was 3.3 years. A large share of rental income in the Finnish portfolio refers to "until further notice leases" that run on a 12-month basis, which is a common form of agreement in Finland. Tenants lease their premises on average for a longer period.
Nyfosa has a highly diverse tenant list featuring only a small number of dominant tenants. The ten largest tenants represent 11 percent of total rental income and are distributed between 170 leases. Among the largest tenants are the Swedish Transport Agency, Delta Auto Oy, Saab, Telia, Social Insurance Agency, City Gross, the Swedish Police, the Swedish Public Employment Service and the City of Helsinki, meaning a large share of companies that conduct tax-financed operations. Of total rental income, tax-financed rent represented 25 percent.
13 green appendices were signed during the period when new leases were signed or leases were renegotiated, and Nyfosa had a total of 233 green appendices on April 1, 2023, corresponding to an annual rental value of MSEK 344. The aim of these green appendices is to identify and follow up on various initiatives to reduce energy consumption in premises, such as more efficient heating and lighting.
It was another successful period for leasing based on the company's extensive footprint in the country and a creative approach to potential development. Leasing operations in the first quarter resulted in net leasing of MSEK +3. New leases were signed for a total of MSEK 63, while terminations amounted to MSEK 59. Confirmed bankruptcies among tenants amounted to MSEK 1.
| Percentage | ||||
|---|---|---|---|---|
| Rental | of total | Average | ||
| income, | rental | No. of | remaining | |
| MSEK | income, % | leases | term, years | |
| Delta Auto Oy | 51 | 1 | 12 | 12.3 |
| Swedish Transport | 48 | 1 | 9 | 5.3 |
| Agency | ||||
| Saab AB | 40 | 1 | 10 | 9.5 |
| Telia Sverige AB | 40 | 1 | 57 | 4.8 |
| City Gross Sverige AB | 39 | 1 | 4 | 7.9 |
| Swedish Police | 37 | 1 | 26 | 3.1 |
| Social Insurance | 36 | 1 | 10 | 3.8 |
| Agency | ||||
| City of Helsinki | 34 | 1 | 1 | 1.1 |
| Swedish Public | 33 | 1 | 31 | 2.6 |
| Employment Service | ||||
| Fresk Försäljning AB | 33 | 1 | 10 | 8.8 |
| Other | 3,144 | 89 | 6,501 | 3.5 |
| Total | 3,536 | 100 | 6,671 | 3.8 |
The yield requirements of the valuations increased during the period as an effect of macroeconomic developments. The negative valuation effect caused by the higher yield requirements was partly offset by the improved future net operating income due to new leases, renegotiations and rent indexation.
The weighted yield requirements for externally valued properties on March 31, 2023 was 6.51 percent (5.82), and the weighted cost of capital for the present value calculation of cash flows and residual values was a nominal 8.63 percent (7.61) and 8.84 percent (7.93), respectively.
Changes in values of properties amounted to MSEK –522 (863).
The value of the properties has been assessed based on a market-adapted cash-flow estimate in which, by simulating the calculated future income and expenses, an analysis has been made of the market's expectations with respect to the subject property.
The yield requirement used in the estimate derives from sales of comparable properties. For additional information on valuation techniques, refer to Note 10 of Nyfosa AB's 2022 Annual Report on www.nyfosa.se.
The company engages external, independent appraisers every quarter to quality assure the fair value measurement of the company's properties. All properties are valued every quarter, except for those properties for which possession was taken during the current quarter or properties for which a sales agreement exists. In these cases, the agreed property value is used.
Closing took place on properties for a total value of MSEK 955 during the period.
At the start of January, closing took place on three office properties with a total area of about 7 thousand sqm in central Västervik.
At the end of March, closing took place on a portfolio of 13 properties including grocery and discount stores, warehouses and light industrial buildings. The acquisition price amounted to MSEK 706 and the annual rental value is MSEK 62.5. The properties, which have a leasable area of just over 50 thousand sqm, are fully let and the total average remaining lease term is 4.4 years. The majority of the properties are situated where Nyfosa currently has a local presence, in well-established locations such as Eskilstuna, Örebro, Linköping, Gävle, and Örnsköldsvik. The tenants include Dagab Logistik (Willys), Ahlberg Dollarstore, Rusta and ICA.
Closing also took place on a retail property in Borås and an industrial property in Porvoo in Finland.
| Jan–Mar | Full-year | ||
|---|---|---|---|
| MSEK | 2023 | 2022 | 2022 |
| Property value at the beginning of the year |
40,446 | 37,147 | 37,147 |
| Acquired properties | 955 | 28 | 4,394 |
| Investments in existing properties | 193 | 88 | 577 |
| Divested properties | 0 | -352 | -1,735 |
| Realized changes in value | 0 | 5 | 225 |
| Unrealized changes in value | -521 | 858 | -664 |
| Translation effect, currency | 108 | 37 | 503 |
| Property value at end of the year | 41,182 | 37,811 | 40,446 |
March 31, 2023
| % points | MSEK | |
|---|---|---|
| Change in net operating income1 | +/–5.00 | +/–1,960 |
| Change in yield requirement | +/–0.25 | +/–1,606 |
| Change in discount rate | +/–0.25 | +/–1,200 |
1) Refers to the appraisers' estimated net operating income in the valuation.
Investments of MSEK 193 were made in the existing property portfolio. The majority of investments were for tenant-specific modifications.
The largest ongoing investments are presented in the table below. A major expansion and renovation project is underway at the Vasarakatu 27 property in Jyväskylä, for which a 15-year lease was signed with Spesia, which conducts education and training. The premises in Mården 11 in Luleå are undergoing a complete renovation and modification for the Municipality of Luleå, which signed a ten-year lease with occupancy scheduled for 2023. The premises in Norr 12:5 in Gävle are being renovated and modified for the existing tenant the Social Insurance Agency. Areas at the Norr 25:5 property in Gävle is being expanded and modified for Realgymnasiet school, for which a new ten-year lease has been signed. In Holmögadd 3 in Malmö, areas are being modified for Lantmännen, for which a new seven-year lease has been signed.
The process of environmentally certifying buildings is continuing, with the primary aim of preparing solid data for deciding on any investment in energy-optimization measures. Properties with sustainability certification had a total value of SEK 11.7 billion on the balance-sheet date, corresponding to 28 percent of the total property value.
Specific measures to enhance the cost efficiency of the operation of the premises include analyses to identify investments in energy optimization. Lower energy consumption reduces carbon emissions and also leads to lower operating expenses. A green appendix is offered for when major new leases are signed or leases are renegotiated, the aim of which is to identify and follow up on various initiatives to reduce energy consumption in premises, such as more efficient heating and lighting.
Nyfosa has a broad geographic presence throughout Sweden and in major cities in Finland. Regional property management offices—currently nine offices—can be found in key locations in Sweden with large property portfolios. In Finland, the company's partner Brunswick Real Estate in the country leads operational activities regarding transactions, management and sustainability issues together with Nyfosa's own personnel.
The company's in-house personnel conduct key roles in the property management operations such as tenant relationships, technical management and leasing. This is supplemented with the purchase of external services, mainly in property operations, maintenance and upkeep. With experienced employees in both the in-house management team and external partners, combined with structured work methods, the company's capable of effectively handling a property portfolio that spans over many locations.
| Municipality | Property | Type of premises |
Tenant | Area, 000s sqm |
Total accrued, MSEK |
Estimated investment, MSEK |
Scheduled completion, year |
|---|---|---|---|---|---|---|---|
| Jyväskylä | Vasarakatu 27 | School | Ammattiopisto Spesia | 4 | 73 | 91 | Q2 2023 |
| Gävle | Norr 12:5 | Offices | Social Insurance Agency | 6 | 53 | 62 | Q2 2023 |
| Luleå | Mården 11 | Offices | Luleå municipality | 11 | 74 | 107 | Q4, 2023 |
| Malmö | Holmögadd 3 | Office /warehouse |
Lantmännen | 11 | 2 | 30 | Q4, 2023 |
| Gävle | Norr 25:5 | School | Realgymnasiet | 3 | 5 | 24 | Q3 2023 |
In addition to the wholly owned portfolio, Nyfosa owns 50 percent of the shares in Samfosa AS and Söderport Property Investment AB. The holding is classified as Participations in joint ventures and Nyfosa's share in the company's earnings are recognized in profit after financial income and expenses. These participations contributed SEK 19.05 per share (18.28) to Nyfosa's NAV on the balance-sheet date.
Samfosa AS is a Norwegian property company that is jointly owned with Samfunnsbyggeren AS.
The property company Bratsberg AS was acquired in January 2022. The portfolio serves as a robust platform for continued growth in the country and encompasses a total of 14 properties and 10 projects situated in Skien, Porsgrunn, Grimstad and Horten, in the expansive Grenland region southwest of Oslo. As part of the transaction, Samfosa took over Bratsberg's organization.
The property portfolio is highly diverse with tenants conducting a wide variety of operations and a large number of leases. The largest tenants are Sats Vest and Scandic Hotel. At the end of the period, the value of the property portfolio was about SEK 1,612 billion. The total rental value amounted to MSEK 114 and leases have an average remaining term of 4.5 years. The occupancy rate was 92.1 percent.
Söderport Property Investment AB is a Swedish property company jointly owned with AB Sagax.
Söderport's property portfolio primarily comprises industrial, warehouse and office properties, which essentially presents a supplement to Nyfosa's wholly owned property portfolio. The focal point of the property portfolio is in the Stockholm region. The largest tenant is Volvo Personvagnar. Söderport does not have its own operational organization. Instead, it procures property management and financial administration from Sagax. A small part of property management is procured from Nyfosa.
Söderport owns the subsidiary Torslanda Property Investment AB (TPI), whose shares were delisted from Nasdaq First North Growth Market in January 2023 as a result of Söderport's additional acquisitions of shares in the company.
| Söderport | Samfosa | |||
|---|---|---|---|---|
| January–mars, MSEK | 2023 | 2022 | 2023 | 2022 |
| Rental income | 256 | 220 | 26 | 28 |
| Profit from property manage ment |
113 | 123 | 0 | 3 |
| Changes in value | -218 | 603 | 13 | - |
| Profit | -101 | 579 | 11 | 3 |
| of which, Nyfosa's share | -51 | 265 | 5 | 2 |
| March 31, MSEK | ||||
| Investment properties | 14,058 13,850 | 1,612 | 1,603 | |
| Derivatives, net | 131 | 8 | - | - |
| Cash and cash equivalents | 276 | 260 | 27 | 37 |
| Equity attributable to Parent Company shareholders |
5,660 | 5,509 | 267 | 156 |
| of which, Nyfosa's share | 2,830 | 2,754 | 135 | 79 |
| Interest-bearing liabilities | 7,007 | 6,606 | 1,265 | 1,423 |
| Deferred tax liabilities, net | 1,439 | 1,327 | 39 | - |
| Rental value | 1,073 | 947 | 114 | 113 |
| Economic occupancy rate, % | 96 | 98 | 92 | 97 |
| Average remaining lease term, years |
4.1 | 4.4 | 4.5 | 4.4 |
| Leasable area, 000s sqm | 770 | 761 | 102 | 100 |
| Söderport | Samfosa | |||
|---|---|---|---|---|
| March 31, MSEK | 2023 | 2022 | 2023 | 2022 |
| Carrying amount at the beginning of the year |
2,881 | 2,490 | 137 | 0 |
| Dividends received | - | - | - | - |
| Share in profit of joint ventures | -51 | 265 | 5 | 2 |
| Acquisitions/impairment for the year |
- | 0 | - | 76 |
| Translation effect, currency | - | - | -8 | 0 |
| Carrying amount at end of the year |
2,830 | 2,754 | 135 | 79 |
| Rolling | |||||
|---|---|---|---|---|---|
| Property-related key figures | 12 months | 2022 | 2021 | 2020 | 2019 |
| Income, MSEK | 3,332 | 3,151 | 2,459 | 2,035 | 1,370 |
| Property expenses, MSEK | -1,003 | -930 | -717 | -557 | -415 |
| Property administration, MSEK | -131 | -129 | -91 | -63 | -50 |
| Net operating income, MSEK | 2,197 | 2,092 | 1,651 | 1,415 | 905 |
| Surplus ratio, % | 65.9 | 66.4 | 67.1 | 69.5 | 66.0 |
| Profit from property management, MSEK | 1,476 | 1,533 | 1,302 | 1,147 | 814 |
| Property value on balance-sheet date, MSEK | 41,182 | 40,446 | 37,147 | 29,411 | 19,602 |
| Rolling | |||||
|---|---|---|---|---|---|
| Share-related key figures | 12 months | 2022 | 2021 | 2020 | 2019 |
| Profit from property management per share, SEK | 7.48 | 7.80 | 6.90 | 6.32 | 4.85 |
| Distributable cash flow per share, SEK | 8.06 | 8.35 | 7.64 | 6.91 | 4.73 |
| Earnings per share before dilution, SEK | -0.07 | 8.62 | 16.52 | 12.25 | 8.24 |
| Earnings per share after dilution, SEK | -0.07 | 8.61 | 16.49 | 12.25 | 8.24 |
| Dividend paid to the Parent Company's shareholders, SEK | 3.80 | 3.60 | 3.24 | 0.00 | 0.00 |
| NAV per share on balance-sheet date, SEK | 99.01 | 100.78 | 95.93 | 79.91 | 65.37 |
| Adjusted NAV per share on balance-sheet date, SEK | 92.30 | 93.63 | 89.76 | 75.33 | 60.11 |
| Equity per share on balance-sheet date, SEK | 90.57 | 92.22 | 86.04 | 72.27 | 58.32 |
| Key financial data | Mar 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 | ||||
|---|---|---|---|---|---|
| Return on equity, % | -0.1 | 9.7 | 20.9 | 19.3 | 15.2 |
| Equity/assets ratio, % | 39.5 | 40.6 | 42.5 | 41.8 | 44.1 |
| Loan-to-value ratio, properties, % | 60.0 | 59.4 | 56.7 | 58.0 | 57.6 |
| Net loan-to-value ratio, properties, % | 59.0 | 57.7 | 55.2 | 56.9 | 54.6 |
| Interest-coverage ratio for the period, multiple | 2.9 | 3.4 | 4.2 | 4.5 | 5.2 |
Presented above are the key figures that provide supplementary information to investors and the company's management in their assessment of the company's performance. Key figures not been defined by IFRS have been supplemented with a reconciliation. Refer also to the reconciliations and definitions of key figures at the end of this interim report.
INCOME PER SHARE
NET OPERATING INCOME PER SHARE
| Jan–Mar | Rolling | Full-year | ||
|---|---|---|---|---|
| MSEK | 2023 | 2022 | 12 months | 2022 |
| Rental income | 803 | 659 | 2,998 | 2,853 |
| Service income | 92 | 54 | 335 | 297 |
| Income | 895 | 714 | 3,332 | 3,151 |
| Property expenses | ||||
| Operating expenses | -229 | -166 | -698 | -635 |
| Maintenance costs | -39 | -37 | -145 | -143 |
| Property tax | -40 | -32 | -161 | -153 |
| Property administration | -31 | -28 | -131 | -129 |
| Net operating income | 556 | 450 | 2,197 | 2,092 |
| Central administration | -47 | -36 | -172 | -161 |
| Other operating income and expenses | 5 | 2 | 18 | 14 |
| Share in profit of joint ventures | -45 | 266 | 361 | 672 |
| - Of which, profit from property management | 57 | 59 | 250 | 252 |
| - Of which, changes in value | -102 | 274 | 165 | 542 |
| - Of which, tax | -8 | -68 | -101 | -161 |
| - Of which, other | 9 | - | 47 | 38 |
| Financial income and expenses | -268 | -116 | -816 | -664 |
| Profit after financial income and expenses1 | 201 | 567 | 1,587 | 1,953 |
| - Of which, profit from property management1 | 303 | 360 | 1,476 | 1,533 |
| Changes in value of properties | -522 | 863 | -1,824 | -439 |
| Changes in value of financial instruments | -29 | 110 | 206 | 345 |
| Profit before tax | -350 | 1,540 | -31 | 1,859 |
| Current tax | -14 | -23 | -87 | -96 |
| Deferred tax | 30 | -194 | 155 | -70 |
| Profit | -333 | 1,323 | 37 | 1,694 |
| Profit attributable to: | ||||
| Parent Company shareholders | -333 | 1,322 | 35 | 1,689 |
| Non-controlling interests | 0 | 2 | 2 | 5 |
| Profit | -333 | 1,323 | 37 | 1,694 |
| Earnings per share before dilution, SEK | -1.82 | 6.87 | -0.07 | 8.62 |
| Earnings per share after dilution, SEK | -1.82 | 6.85 | -0.07 | 8.61 |
| Jan–Mar | Rolling | Full-year | ||
|---|---|---|---|---|
| MSEK | 2023 | 2022 | 12 months | 2022 |
| Profit | -333 | 1,323 | 37 | 1,694 |
| Translation of foreign operations | 41 | 18 | 317 | 269 |
| Comprehensive income | -292 | 1,342 | 354 | 1,962 |
| Comprehensive income attributable to: | ||||
| Parent Company shareholders | -293 | 1,338 | 338 | 1,955 |
| Non-controlling interests | 1 | 3 | 16 | 7 |
| Comprehensive income | -292 | 1,342 | 354 | 1,962 |
1) From October 1, 2022, the former earnings measure Profit from property management was renamed Profit after financial income and expenses, and the former earnings measure Profit from property management, excluding changes in value and tax in joint ventures was renamed Profit from property management. This change provides better comparability with other listed Swedish property companies with significant holdings of participations in joint ventures.
| Mar 31 | Dec 31 | ||
|---|---|---|---|
| MSEK | 2023 | 2022 | 2022 |
| ASSETS | |||
| Investment properties | 41,182 | 37,811 | 40,446 |
| Assets with right-of-use | 510 | 243 | 501 |
| Participations in joint ventures | 2,965 | 2,832 | 3,018 |
| Derivatives | 354 | 131 | 372 |
| Other assets | 64 | 37 | 47 |
| Total non-current assets | 45,075 | 41,054 | 44,385 |
| Current receivables | 319 | 237 | 259 |
| Cash and cash equivalents | 430 | 1,380 | 691 |
| Total current assets | 749 | 1,617 | 950 |
| TOTAL ASSETS | 45,824 | 42,671 | 45,335 |
| EQUITY AND LIABILITIES | |||
| Equity attributable to Parent Company shareholders1 | 18,064 | 18,565 | 18,378 |
| Non-controlling interests | 40 | 35 | 39 |
| Total equity | 18,103 | 18,600 | 18,416 |
| Non-current interest-bearing liabilities | 23,650 | 17,584 | 22,957 |
| Liabilities attributable to right-of-use assets | 493 | 235 | 484 |
| Other non-current liabilities | 66 | 49 | 62 |
| Deferred tax liabilities | 1,304 | 1,447 | 1,333 |
| Total non-current liabilities | 25,513 | 19,314 | 24,837 |
| Current interest-bearing liabilities | 1,071 | 3,968 | 1,076 |
| Other current liabilities | 1,136 | 788 | 1,006 |
| Total current liabilities | 2,207 | 4,756 | 2,082 |
| Total liabilities | 27,720 | 24,070 | 26,919 |
| TOTAL EQUITY AND LIABILITIES | 45,824 | 42,671 | 45,335 |
| Equity attributable to the Parent Compa |
Non-controlling | ||
|---|---|---|---|
| MSEK | ny's shareholders | interests | Total equity |
| Opening equity, Jan 1, 2022 | 17,236 | 32 | 17,268 |
| Interest and other expenses on hybrid bonds | -9 | - | -9 |
| Change in non-controlling interests | - | 0 | 0 |
| Comprehensive income, Jan–Mar 2022 | 1,338 | 3 | 1,342 |
| Closing equity, Mar 31, 2022 | 18,565 | 35 | 18,600 |
| Issue/buyback of warrants | -11 | - | -11 |
| Dividends to shareholders | -726 | - | -726 |
| Repurchased hybrid bonds | -34 | - | -34 |
| Interest and other expenses on hybrid bonds | -35 | - | -35 |
| Change in non-controlling interests | - | 0 | 0 |
| Comprehensive income, Apr–Dec 2022 | 617 | 4 | 620 |
| Closing equity, Dec 31, 2022 | 18,378 | 39 | 18,416 |
| Opening equity, Jan 1, 2023 | 18,378 | 39 | 18,416 |
| Issue/buyback of warrants | -7 | - | -7 |
| Interest and other expenses on hybrid bonds | -14 | - | -14 |
| Change in non-controlling interests | - | - | - |
| Comprehensive income, Jan–Mar 2023 | -293 | 1 | -294 |
| Closing equity, Mar 31, 2023 | 18,064 | 40 | 18,102 |
1) Of which hybrid bonds of MSEK 763 (800).
| Jan–Mar | Rolling | Full-year | ||
|---|---|---|---|---|
| MSEK | 2023 | 2022 | 12 months | 2022 |
| Operating activities | ||||
| Profit before tax | -350 | 1,540 | -31 | 1,859 |
| Adjustments for non-cash items | 609 | -1,224 | 1,326 | -507 |
| Dividend from holdings in joint ventures | - | - | 335 | 335 |
| Interest paid to hybrid bond holders | -15 | -6 | -46 | -37 |
| Income tax paid | -44 | -54 | -44 | -54 |
| Distributable cash flow1 | 200 | 256 | 1,539 | 1,596 |
| – per share, SEK | 1.05 | 1.34 | 8.06 | 8.35 |
| Change in operating receivables | -38 | -45 | -43 | -49 |
| Change in operating liabilities | 324 | 188 | 234 | 97 |
| Cash flow from operating activities | 485 | 398 | 1,731 | 1,644 |
| Investing activities | ||||
| Direct and indirect acquisitions of investment properties | -942 | -18 | -5,237 | -4,313 |
| Direct and indirect divestments of investment properties | - | 348 | 1,378 | 1,726 |
| Investments in existing investment properties | -193 | -88 | -683 | -577 |
| Investments in joint ventures | - | -76 | -116 | -192 |
| Non-current receivables from joint ventures | -26 | -23 | -33 | -29 |
| Other | 0 | - | -7 | -7 |
| Cash flow from investing activities | -1,162 | 144 | -4,698 | -3,392 |
| Jan–Mar | Rolling | Full-year | ||
|---|---|---|---|---|
| MSEK | 2023 | 2022 | 2022 | |
| Financing activities | ||||
| Issue of shares/warrants | - | - | 4 | 4 |
| Repurchase of shares/warrants | -7 | - | -21 | -14 |
| Repurchased hybrid bonds | - | - | -34 | -34 |
| Dividends to shareholders | -181 | -143 | -726 | -688 |
| Loans raised | 670 | 1,402 | 9,540 | 10,271 |
| Repayment of loans | -79 | -933 | -6,789 | -7,643 |
| New share issue to non-controlling interests | - | - | 1 | 1 |
| Other | 9 | -11 | 11 | -8 |
| Cash flow from financing activities | 412 | 315 | 1,986 | 1,889 |
| Cash flow for the period | -264 | 858 | -982 | 140 |
| Cash and cash equivalents at the beginning of the period | 691 | 534 | 1,380 | 534 |
| Exchange differences in cash and cash equivalents | 3 | -13 | 32 | 16 |
| Cash and cash equivalents at the end of the period | 430 | 1,380 | 430 | 691 |
| Interest received | 0 | 0 | 5 | 5 |
| Interest paid | -238 | -102 | -602 | -467 |
1) Cash flow from operating activities before changes in working capital
| Jan–Mar | Full-year | ||
|---|---|---|---|
| MSEK | 2023 | 2022 | 2022 |
| Net sales | 34 | 29 | 125 |
| Personnel costs | -25 | -24 | -93 |
| Other external costs | -14 | -16 | -58 |
| Depreciation/amortization | 0 | 0 | 0 |
| Loss before financial income and expenses | -6 | -12 | -26 |
| Profit from participations in Group companies | 0 | 0 | 1,215 |
| Interest income and similar income items | 68 | 31 | 166 |
| Interest expenses and similar expense items | -29 | -18 | -107 |
| Profit before appropriations | 33 | 2 | 1,248 |
| Appropriations | |||
| Provision to tax allocation reserve | - | 0 | 0 |
| Group contributions paid/received | - | 0 | 25 |
| Profit before tax | 33 | 2 | 1,273 |
| Tax | 0 | 0 | 1 |
| Profit | 33 | 2 | 1,273 |
Profit/loss for the period is the same as comprehensive income for the period.
Nyfosa AB is a holding company whose operations comprise owning and managing shares. The company owns 100 percent of the participations in Nyfosa Holding AB, which indirectly owns properties for SEK 41.2 billion. Furthermore, the company owns, via subsidiaries, 50 percent of the participations in Söderport and Samfosa, which indirectly own properties for SEK 15.7 billion.
| Mar 31 | Dec 31 | ||
|---|---|---|---|
| MSEK | 2023 | 2022 | 2022 |
| ASSETS | |||
| Participations in Group companies | 0 | 0 | 0 |
| Receivables from Group companies | 5,277 | 5,277 | 5,277 |
| Deferred tax assets | 0 | 0 | 0 |
| Total non-current assets | 5,277 | 5,277 | 5,277 |
| Current receivables from Group companies | 16,043 | 10,980 | 16,014 |
| Other current receivables | 11 | 4 | 22 |
| Cash and bank balances | 36 | 115 | 258 |
| Total current assets | 16,090 | 11,099 | 16,294 |
| TOTAL ASSETS | 21,368 | 16,377 | 21,571 |
| EQUITY AND LIABILITIES | |||
| Restricted equity | 96 | 96 | 96 |
| Unrestricted equity | 11,841 | 11,361 | 11,828 |
| Equity | 11,937 | 11,457 | 11,924 |
| Untaxed reserves | 0 | 0 | 0 |
| Bonds | 1,585 | 1,093 | 1,591 |
| Other non-current liabilities | 7 | 4 | 7 |
| Total non-current liabilities | 1,591 | 1,097 | 1,598 |
| Bonds | - | 748 | - |
| Liabilities to Group companies | 7,742 | 3,016 | 7,794 |
| Other current liabilities | 98 | 59 | 255 |
| Total current liabilities | 7,840 | 3,823 | 8,049 |
| Total liabilities | 9,431 | 4,920 | 9,647 |
| TOTAL EQUITY AND LIABILITIES | 21,368 | 16,377 | 21,571 |
This condensed interim report for the Group has been prepared in accordance with IAS 34 Interim Reporting, as well as the applicable regulations of the Swedish Annual Accounts Act. The interim report for the Parent Company has been prepared in accordance with Chapter 9 Interim Reports of the Annual Accounts Act. The accounting policies and calculation methods were unchanged compared with 2022 Annual Report, except for the recognition of deferred tax on assets and liabilities for rightof-use assets in accordance with IAS 12. The change gives rise to equal sized deferred tax liabilities and deferred tax assets and since they are recognized net in the statements of financial position, this does not have any impact on the financial statements. Disclosures in accordance with IAS 34.16A are provided not only in the financial statements and the accompanying notes but also elsewhere in this interim report.
All amounts in the report are stated in millions of SEK ("MSEK") unless otherwise stated. There may be rounding errors in tables that have combined sums from already rounded amounts. Amounts in parentheses refer to the same period in the preceding financial year. Key figures regarding an earnings or cash flow measure, stated per share, are calculated on a weighted average number of shares during the period referred to. Key figures based on an amount in the statement of financial position, stated per share, are calculated on the number of shares on the balance-sheet date. "Rolling 12 months" mean the most recent 12-month period from the balance-sheet date.
From October 1, 2022, the former earnings measure Profit from property management was renamed Profit after financial income and expenses. At the same time, the former earnings measure Profit from property management excluding changes in value and tax in joint ventures was renamed Profit from property management. This change provides better comparability with other listed Swedish property companies with significant holdings of participations in joint ventures.
The preparation of the interim report requires that company management make judgments and estimates, and make assumptions that affect the application of the accounting policies and the amounts of assets, liabilities, income and expenses recognized. The actual outcome may deviate from these judgments and estimates.
For significant assumptions and assessments affecting the measurement of Nyfosa's investment properties, refer to Note 10 of the 2022 Annual Report on www.nyfosa.se. Nyfosa's property portfolio is recognized in the statement of financial position at fair value, Level 3 according to IFRS 13, and the changes in value are recognized in profit or loss. The fair value is based on internal valuations that are performed continuously and all properties are also valued every quarter by an external independent appraiser. The value of the properties is affected not only by supply and demand in the market but also by a number of other factors, in part property-specific factors such as the occupancy rate, rent level and operating expenses, and in part such market-specific factors as the yield requirement and the cost of capital, which are derived from comparable transactions in the property market. Deterioration in either a property or the market could cause the value of the properties to decline, which could have a negative impact on Nyfosa's operations, financial position and earnings.
Valuations require assessments of and assumptions about future cash flows and determination of the discount factor (yield requirement). An uncertainty interval of +/- 5–10 percent is usually applied to property valuations to reflect the uncertainty of assumptions and assessments made.
The regulatory framework governing taxation of the type of business operated by Nyfosa is complex and comprehensive in terms of both income tax and VAT/property taxation. Moreover, interpretation and application of these regulations by courts of law can change over time. Changes in these regulations, or in their interpretation by judicial bodies, could impact Nyfosa's earnings and position either positively or negatively. From time to time, Nyfosa has cases under review by, and ongoing dialog with, the Swedish Tax Agency regarding individual taxation matters. The Tax Agency makes tax rulings that can be appealed and reviewed in administrative courts of appeal. The regulations governing the recognition of taxes, and the property sector's application of these accounting regulations, are also complex. The regulatory framework is complex, the Tax Agency's review possibilities are comprehensive and the judicial bodies' interpretation and reviews take place in many stages, which means that it can take a long time to establish the correct application of legislation in complex taxation matters. This may entail that actions taken or completed transactions that were previously considered permissible according to the regulatory framework may need to be reappraised at a later juncture. Nyfosa monitors the taxation laws and practices that are in effect whenever it files tax returns. Nyfosa's assessments and calculations in the tax area, and the accounting of these matters, are reassessed at the end of each reporting period.
Nyfosa's corporate acquisitions in 2023 encompass only properties and no material operational processes, which is why the transactions are deemed to be asset purchases.
Nyfosa's financial target is to create annual growth in distributable cash flow per share of 10 percent over time. Growth is created in part through the transaction operations and property acquisitions, and in part by the property management operations through leasing and investments in the existing property portfolio. Changed conditions in the market, such as significantly more costly financing, tenant bankruptcies or more expensive modifications impact the company's ability to achieve its financial growth target.
The flexible and opportunistic business model means that the operations can rapidly adapt to new conditions. Close relationships with banks that inspire confidence in the company, thus allowing for rapid changes to new conditions. A diverse lease structure with no exposure to a small number of types of operations or tenants. Investments in the existing property portfolio primarily refer to tenant-specific modifications as stipulated in signed leases.
The property portfolio's total value is the largest asset item in the statement of financial position. Small changes in components that affect the value of an individual property can in total have a major impact on the company's financial position.
The value is affected not only by supply and demand in the market, but by several other factors that are both property specific and market specific. Because the value is based on several components with an element of assumption regarding future rent levels and leasing potential, there is a degree of subjectivity in the value ascribed to the object.
The chosen strategy entails owning a large number of properties that are geographically diverse, thereby resulting in a balanced risk profile.
The prioritized property category is commercial properties in high-growth municipalities where there is an increase in migration and well-functioning business.
To minimize the risk of errors in the value of the property portfolio, the company engages external appraisers to value all properties ahead of each quarterly closing. The valuation assignment is shared by at least two appraisers.
Interest-rate risk means the risk that changes in interest rates result in such high interest expenses that the company breaches its financial risk limitation of the interest-coverage ratio being at least a multiple of 2.0.
Nyfosa mainly has floating interest rates in its loan agreements. Exposure to increases in interest rates is managed by making use of derivative instruments, currently both interest-rate caps and swaps. Interest-rate caps and swaps are entered into to adapt the company's fixed-rate periods to the decided finance policy and existing loan agreements.
The remaining term of signed derivative agreements was 1.9 years (3.0) on the balance-sheet date. Interest-rate caps offer the holder security in the form of a maximum impact on total interest expenses if STIBOR 3M and EURIBOR 6M rise. However, rising interest rates that do not reach the interest-rate cap will have full impact on earnings. The interest-rate cap is 1.5–2.0 percent (1.5–2.0), and an average of 1.56 percent (1.59). Interest-rate swaps already exist in the Finnish loan portfolio for a nominal MSEK 1,136 (-) and were also entered into in the Swedish loan portfolio for a nominal MSEK 500 during the period. Under these derivatives, Nyfosa pays a fixed annual rate of 1.86 percent (-).
Nyfosa's operations comprise one operating segment, that is to say, Nyfosa's operations comprise a business that generates income and expenses and whose operating profit is regularly assessed by the company's chief operating decision maker as a basis for monitoring earnings and allocating resources.
The Group's effective tax rate for the interim period was 4.7 percent (14.1). The deviation from the nominal tax rate of 20.6 percent was mainly due to non-deductible interest, the fact that profit from participations in joint ventures comprised profit after tax, and thus did not constitute taxable income for Nyfosa, and also that the utilization of loss carryforwards changes over time.
Deferred tax is to include temporary differences on all assets and liabilities, except for temporary differences on properties on the closing date since the acquisition is an asset acquisition. There is a total temporary difference of MSEK 15,081 (13,367) in the Group that is not included.
| Jan-Mar | ||
|---|---|---|
| Reconciliation of effective tax, MSEK | % | 2023 |
| Profit before tax | -350 | |
| Tax according to applicable tax rate for Parent Company | -20.6 | 72 |
| Non-deductible costs and tax-exempt income | 6.8 | -24 |
| Profit from participations in joint ventures | 2.6 | -9 |
| Capitalization and utilization of loss carryforwards not capitalized in prior years | - | - |
| Non-taxable sales of properties | 0.0 | 0 |
| Other | 6.5 | -23 |
| Recognized effective tax | -4.7 | 17 |
Nyfosa currently has three long-term incentive programs based on warrants. A description of the warrants programs is provided in Note 6 on pages 82-84 of the 2022 Annual Report and in the report from the 2022 Annual General Meeting, see https://nyfosa.se/en/report-from-nyfosa-abs-annual-general-meeting-on-april-19-2022/. The number of warrants outstanding at the end of the year is presented in the table below.
During the period, the Board offered to repurchase all outstanding warrants in the 2019/2023 warrants program for market-based cash consideration of SEK 27.10 per option. All holders decided to accept the offer.
The repurchase is for 240,000 warrants and total proceeds of MSEK 7 were generated, which were paid in February 2023.
The dilution from the existing warrants program amounted to 0 percent for the period.
| LTIP2019 | LTIP2021 (I) | LTIP2021 (II) | LTIP2022 | ||
|---|---|---|---|---|---|
| Reconciliation of warrants | Mar 31, 2023 | Mar 31, 2023 | Mar 31, 2023 | Mar 31, 2023 | Total |
| Warrants outstanding at beginning of year | 240,000 | 325,241 | 325,241 | 422,150 | 1,312,632 |
| Warrants subscribed | - | - | - | - | - |
| Warrants repurchased | -240,000 | - | - | - | -240,000 |
| Warrants utilized | - | - | - | - | - |
| Warrants outstanding at end of the period |
- | 325,241 | 325,241 | 422,150 | 1,072,632 |
Nyfosa has invested in properties in the Finnish and Norwegian markets. Balance-sheet items in other currencies are translated to SEK and gave rise to a translation difference of MSEK 41 (18) on the balance-sheet date, which is recognized in Other comprehensive income.
Exposure to exchange rate fluctuations is managed by financing acquisitions of assets in foreign currency raising borrowings in the same currency. Net assets in foreign currency amounted to MEUR 334 and the share of equity in joint ventures including receivables from joint ventures to MNOK 184 on March 31, 2023.
March 31, 2023
| Earnings effect of exchange rate fluctuations, MSEK | Change, % Mar 31, 2023 | |
|---|---|---|
| SEK/EUR | +/–10% | +/–376 |
| SEK/NOK | +/–10% | +/–18 |
Nyfosa measures its financial instruments at fair value or amortized cost in the statement of financial position, depending on the classification of the instrument. Financial instruments encompass rent receivables, which are recognized under current receivables in the statement of financial position, derivatives, cash and cash equivalents among assets, interest-bearing liabilities and accounts payable, which are recognized under other current liabilities in the statement of financial position. All derivatives are classified in Level 2 according to IFRS 13 and are measured at their fair value in the statement of financial position. Nyfosa has binding framework agreements for derivative trading (ISDAs), which enable Nyfosa to offset financial liabilities against financial assets in the event of the insolvency of a counterparty of other event, a process known as netting. No netting currently takes place.
The table below presents the fair value of the Group's derivatives, which is reflected in the statement of financial position. The carrying amount of accounts receivable, other receivables, cash and cash equivalents, accounts payable and other liabilities provides a reasonable approximation of the fair value.
| Mar 31 | Dec 31 | ||
|---|---|---|---|
| Fair value, MSEK | 2023 | 2022 | 2022 |
| Derivatives with positive values | 367 | 131 | 372 |
| Derivatives with negative values | - | - | - |
For information regarding changes in loans, interest rates and credit terms, refer to the Financing section of this interim report.
On March 31, 2023, Nyfosa's share capital amounted to MSEK 96, distributed among 191,022,813 shares with a quotient value of SEK 0.5 per share. According to the Articles of Association, the share capital shall amount to not less than MSEK 80 and not more than MSEK 320, distributed among not fewer than 160,000,000 shares and not more than 640,000,000 shares. The share capital in Nyfosa AB changed according to the table.
| Date | Change in share capital (SEK) |
Change number of shares |
Share capital after change (SEK) |
Number of shares after change |
|---|---|---|---|---|
| Oct 17, 2017 | - | - | 50,000.00 | 500 |
| May 18, 2021 | - | 99,500 | 50,000.00 | 100,000 |
| May 18, 2021 | 78,814,124.50 | 157,628,249 | 78,864,124.50 | 157,728,249 |
| Aug 18, 2021 | 5,000,000.00 | 10,000,000 | 83,864,124.50 | 167,728,249 |
| Feb 20, 2017 | 3,231,412.00 | 6,462,824 | 87,095,536.50 | 174,191,073 |
| March 20, 2009 | 5,155,000.00 | 10,310,000 | 92,250,536.50 | 184,501,073 |
| June 21, 2009 | 3,260,870.00 | 6,521,740 | 95,511,406.50 | 191,022,813 |
Nyfosa has hybrid bonds outstanding of a total of MSEK 763 under a framework of MSEK 2,000. The hybrid bonds are perpetual and Nyfosa governs the payment of interest and the principal of the instruments, which is why they are classified as equity instruments under IAS 32. Issue costs and tax attributable to issue costs and interest to the hybrid bond holders are recognized directly in equity. The bonds have a floating interest rate of 3M STIBOR + 475 basis points per annum until the first call date of November 18, 2025.
The Group owns participations in joint ventures, refer to relevant section of this interim report. Söderport is managed by AB Sagax, except for property management which is managed by Nyfosa. Samfosa is managed by its own organization and some personnel from the part-owner Samfunnsbyggeren AS.
Property management fees between the companies are based on market terms. Nyfosa's fee totals MSEK 3 per year. The Group had receivables of MSEK 56 (23) from joint ventures on March 31, 2023. The terms of the loan are market-based and stipulated in a promissory note between the parties. Nyfosa also has a surety for liability of MNOK 310 pertaining to an external bank loan with Samfosa.
After the end of the period, a three-year, green, senior unsecured bond of MSEK 850 with an interest rate of three-month STIBOR +550 basis points was issued. In connection with the issue of the green bonds, Nyfosa repurchased bonds for MSEK 825 with maturity in April 2024.
After the end of the period, an agreement was signed to divest ten properties with warehouses and light industry in Österåker, Malmö, Helsingborg and Jönköping. The selling price amounts to MSEK 555 and the annual rental value is MSEK 40.
Nyfosa's share has been listed on Nasdaq Stockholm Large Cap since November 2018.
The volume weighted average price of the Nyfosa share on the last day of trading of the period, March 31, 2023, was SEK 71.45, which corresponded to a market capitalization of approximately MSEK 13,648.
At the end of the period, Nyfosa had 17,828 shareholders, of which Swedish investors, institutions and private individuals owned 73.1 percent of the shares and voting rights, and the remaining shares and votes were owned by foreign shareholders. The ten largest owners jointly controlled 62 percent of the share capital and voting rights. The table presents Nyfosa's largest shareholders on March 31, 2023, based on information from Modular Finance Monitor.
| Number of | Percentage share | ||
|---|---|---|---|
| Shareholders | shares | Capital, % | Votes, % |
| AB Sagax | 41,000,000 | 21.5 | 21.5 |
| Länsförsäkringar Funds | 18,677,510 | 9.8 | 9.8 |
| Swedbank Robur Funds | 13,958,892 | 7.3 | 7.3 |
| Lannebo Fonder | 8,202,066 | 4.3 | 4.3 |
| SEB Funds | 7,388,100 | 3.9 | 3.9 |
| Vanguard | 7,167,077 | 3.8 | 3.8 |
| BlackRock | 6,639,822 | 3.5 | 3.5 |
| Handelsbanken Funds | 5,845,024 | 3.1 | 3.1 |
| Kåpan Pensioner | 4,880,014 | 2.6 | 2.6 |
| Norges Bank | 4,681,440 | 2.5 | 2.5 |
| Total ten largest owners | 118,439,945 | 62.0 | 62.0 |
| Other shareholders | 72,582,868 | 38.0 | 38.0 |
| Total | 191,022,813 | 100.0 | 100.0 |
Source: Modular Finance Monitor
Nyfosa's organization comprises 82 people, who work with property management, transaction operations, Group-wide administrative services and services specific to the listed Parent Company. Relevant services are provided to the subsidiaries in the Nyfosa Group through internal service level agreements. The property portfolio is primarily managed by the company's own personnel, but also by well-established partners, from nine property management offices in Sweden and three property management offices in Finland.
Nyfosa's 2023 Annual General Meeting will be held at Fotografiska museet in Stockholm on April 25, 2023. For more information about the AGM, visit www.nyfosa.se.
The Board proposes that the AGM resolve on the distribution of a dividend of SEK 4.00 (SEK 3.80) per share with quarterly payment of SEK 1.00 per share, corresponding to MSEK 764.
The CEO gives her assurance that this interim report provides a fair review of the Group's and the Parent Company's operations, financial position and earnings, and describes the material risks and uncertainties facing the Parent Company and the companies included in the Group.
Nacka, April 25, 2023 Nyfosa AB (Corp. Reg. No. 559131–0833)
Stina Lindh Hök CEO
Interim report January–June 2023 July 11, 2023
Interim report January–September 2023 October 26, 2023
Tel: +46 (0)8 406 64 00 Street address: Hästholmsvägen 28 Postal address: Box 4044, SE-131 04 Nacka, Sweden www.nyfosa.se
Stina Lindh Hök, CEO Tel: +46 (0)70 577 18 85 E-mail: [email protected]
Ann-Sofie Lindroth, CFO Tel: +46 (0)70 574 59 25 E-mail: [email protected] This interim report is unaudited.
The information is inside information that Nyfosa AB is obligated to disclose in accordance with the EU Market Abuse Regulation. The information was submitted for publication through the agency of the aforementioned contact persons on April 25, 2023 at 7:30 a.m. CEST.
| Rolling | |||||
|---|---|---|---|---|---|
| 12 months | 2022 | 2021 | 2020 | 2019 | |
| Profit before tax, MSEK | -31 | 1,859 | 3,644 | 2,399 | 1,576 |
| Changes in value of properties, MSEK | 1,824 | 439 | -1,652 | -1,063 | -472 |
| Changes in value of financial instruments, MSEK | -206 | -345 | -19 | -1 | 7 |
| Changes in value of tax and other items in Share in profit of joint ventures, MSEK |
-111 | -420 | -670 | -187 | -298 |
| Profit from property management, MSEK | 1,476 | 1,533 | 1,302 | 1,147 | 814 |
| Interest on hybrid bonds, MSEK | -48 | -43 | -4 | 0 | 0 |
| Adjusted profit from property management, MSEK | 1,428 | 1,490 | 1,298 | 1,147 | 814 |
| Average number of shares, millions | 191 | 191 | 188 | 182 | 168 |
| Profit from property management per share, SEK | 7.48 | 7.80 | 6.90 | 6.32 | 4.85 |
| Rolling | |||||
|---|---|---|---|---|---|
| 12 months | 2022 | 2021 | 2020 | 2019 | |
| Profit before tax, MSEK | -31 | 1,859 | 3,644 | 2,399 | 1,576 |
| Changes in value of properties, MSEK | 1,824 | 439 | -1,652 | -1,063 | -472 |
| Changes in value of financial instruments, MSEK | -206 | -345 | -19 | -1 | 7 |
| Share in profit of joint ventures, MSEK | -361 | -672 | -888 | -404 | -491 |
| Dividends received from participations in joint ventures, | |||||
| MSEK | 335 | 335 | 332 | 300 | 200 |
| Depreciation of equipment, MSEK | 2 | 2 | 1 | 1 | 0 |
| Financial expenses, MSEK | 827 | 678 | 446 | 357 | 195 |
| Adjusted profit before tax, MSEK | 2,390 | 2,296 | 1,864 | 1,587 | 1,016 |
| Interest-coverage ratio, multiple | 2.9 | 3.4 | 4.2 | 4.5 | 5.2 |
| Rolling | |||||
|---|---|---|---|---|---|
| 12 months | 2022 | 2021 | 2020 | 2019 | |
| Profit before tax, MSEK | -31 | 1,859 | 3,644 | 2,399 | 1,576 |
| Changes in value of properties, MSEK | 1,824 | 439 | -1,652 | -1,063 | -472 |
| Changes in value of financial instruments, MSEK | -206 | -345 | -19 | -1 | 7 |
| Share in profit of joint ventures, MSEK | -361 | -672 | -888 | -404 | -491 |
| Dividends received from participations in joint ventures, | |||||
| MSEK | 335 | 335 | 332 | 300 | 200 |
| Depreciation of equipment, MSEK | 2 | 2 | 1 | 1 | 0 |
| Allocated arrangement fees for loans, MSEK | 66 | 69 | 48 | 35 | 0 |
| Income tax paid, MSEK | -44 | -54 | -29 | -11 | -27 |
| Interest on hybrid bonds, MSEK | -46 | -37 | 0 | 0 | 0 |
| Distributable cash flow, MSEK | 1,539 | 1,596 | 1,436 | 1,254 | 793 |
| Average number of shares, millions | 191 | 191 | 188 | 182 | 168 |
| Distributable cash flow per share, SEK | 8.06 | 8.35 | 7.64 | 6.91 | 4.73 |
| Rolling | |||||
|---|---|---|---|---|---|
| 12 months | 2022 | 2021 | 2020 | 2019 | |
| Interest-bearing liabilities, MSEK | 24,721 | 24,033 | 21,045 | 17,055 | 11,282 |
| Property value, MSEK | 41,182 | 40,446 | 37,147 | 29,411 | 19,602 |
| Loan-to-value ratio, % | 60.0 | 59.4 | 56.7 | 58.0 | 57.6 |
| Cash and cash equivalents, MSEK | 430 | 691 | 534 | 312 | 588 |
| Net loan-to-value ratio, % | 59.0 | 57.7 | 55.2 | 56.9 | 54.6 |
| Rolling | |||||
|---|---|---|---|---|---|
| 12 months | 2022 | 2021 | 2020 | 2019 | |
| Equity, MSEK | 18,103 | 18,416 | 17,268 | 13,333 | 9,781 |
| Total assets, MSEK | 45,824 | 45,335 | 40,626 | 31,907 | 22,201 |
| Equity/assets ratio, % | 39.5 | 40.6 | 42.5 | 41.8 | 44.1 |
| Mar 31, 2023 |
Dec 31, 2022 |
Dec 31, 2021 |
Dec 31, 2020 |
Dec 31, 2019 |
|
|---|---|---|---|---|---|
| Equity attributable to Parent Company shareholders, MSEK | 18,064 | 18,378 | 17,236 | 13,333 | 9,781 |
| Hybrid bonds, MSEK | -763 | -763 | -800 | 0 | 0 |
| Deferred tax, MSEK | 1,304 | 1,333 | 1,252 | 760 | 627 |
| Derivatives, MSEK | -367 | -372 | -22 | -3 | -2 |
| Deferred tax in joint ventures, 50%, MSEK | 740 | 751 | 596 | 544 | 454 |
| Derivatives in joint ventures, 50%, MSEK | -66 | -76 | 62 | 110 | 104 |
| NAV, MSEK | 18,913 | 19,250 | 18,325 | 14,744 | 10,965 |
| Number of shares, millions | 191 | 191 | 191 | 185 | 168 |
| NAV per share, SEK | 99.01 | 100.78 | 95.93 | 79.91 | 65.37 |
| NAV, MSEK | 18,913 | 19,250 | 18,325 | 14,744 | 10,965 |
| Reversal of deferred tax, MSEK | -1,304 | -1,333 | -1,252 | -760 | -627 |
| Estimated actual deferred tax, MSEK1 | 615 | 576 | 541 | 341 | 98 |
| Reversal of deferred tax in JV, Nyfosa's share, MSEK | -740 | -751 | -596 | -544 | -454 |
| Estimated actual deferred tax in JV, Nyfosa's share, MSEK1 |
147 | 142 | 126 | 119 | 100 |
| Adjusted NAV, MSEK | 17,631 | 17,885 | 17,144 | 13,900 | 10,082 |
| Number of shares, millions | 191 | 191 | 191 | 185 | 168 |
| Adjusted NAV per share, SEK | 92.30 | 93.63 | 89.76 | 75.33 | 60.11 |
1) Assumptions include that loss carryforwards are expected to be used in the next five years with nominal tax of 20.6 percent. The property portfolio is expected to be realized over 50 years when the entire portfolio will be indirectly sold via companies and the purchaser's deduction for deferred tax is 7 percent. The discount rate was 3 percent. The calculation as per December 31, 2018 is not presented.
| Mar 31, 2023 |
Dec 31, 2022 |
Dec 31, 2021 |
Dec 31, 2020 |
Dec 31, 2019 |
|
|---|---|---|---|---|---|
| Equity attributable to the Parent Company's shareholders, MSEK |
18,064 | 18,378 | 17,236 | 13,333 | 9,781 |
| Hybrid bonds, MSEK | -763 | -763 | -800 | 0 | 0 |
| Adjusted equity, MSEK | 17,301 | 17,615 | 16,436 | 13,333 | 9,781 |
| Number of shares, millions | 191 | 191 | 191 | 185 | 168 |
| Equity per share, SEK | 90.57 | 92.22 | 86.04 | 72.27 | 58.32 |
| Rolling 12 months |
2022 | 2021 | 2020 | 2019 | |
|---|---|---|---|---|---|
| Profit attributable to Parent Company shareholders, MSEK |
-35 | 1,689 | 3,112 | 2,225 | 1,382 |
| Interest to hybrid bond holders, MSEK | -48 | -43 | -4 | 0 | 0 |
| Adjusted profit for the year, MSEK | -13 | 1,646 | 3,107 | 2,225 | 1,382 |
| Average equity attributable to Parent Company shareholders, MSEK |
18,314 | 17,807 | 15,285 | 11,557 | 9,087 |
| Average hybrid bonds, MSEK | -781 | -781 | -400 | 0 | 0 |
| Adjusted equity, MSEK | 17,533 | 17,026 | 14,885 | 11,557 | 9,087 |
| Return on equity, % | -0.1 | 9.7 | 20.9 | 19.3 | 15.2 |
Profit for the most recent 12-month period less interest on hybrid bonds in relation to average equity, attributable to the Parent Company's shareholders and adjusted for average hybrid bonds, during the same period.
Purpose: The performance measure shows the return generated on the capital attributable to shareholders.
Interest-bearing liabilities at the end of the period in relation to the value of the properties (in the statement of financial position).
Purpose: The loan-to-value ratio is a measure of risk that indicates the degree to which the operation is encumbered with interest-bearing liabilities. The performance measure provides comparability with other property companies.
Net operating income according to earnings capacity in relation to the fair value of the properties on the balance-sheet date.
Purpose: The performance measure indicates the yield from operational activities in relation to the properties' value.
Net operating income comprises the income and expense directly connected to the property, meaning rental income and the expenses required to keep the property in operation, such as operating expenses, maintenance costs and personnel costs for those who take care of the property and tenant contacts.
Purpose: The measure is used to provide comparability with other property companies, but also to illustrate operational performance.
Equity, attributable to the Parent Company's shareholders less hybrid bonds, according to the statement of financial position, in relation to the number of shares outstanding on the balance-sheet date.
Purpose: The performance measure shows how large a share of the company's recognized equity each share represents.
Income before rent discounts as a percentage of the rental value at the end of the period.
Purpose: The performance measure facilitates the assessment of rental income in relation to the total value of the leased and unleased floor space.
Properties held under title or site leasehold.
The carrying amount of investment properties according to the statement of financial position at the end of the period.
Purpose: The performance measure facilitates better understanding of the value development in the property portfolio and the company's statement of financial position.
Profit from property management comprises profit before tax with reversal of changes in the value of properties and financial instruments in the Group and reversal of changes in value of tax and other items in share in profit of joint ventures.
Profit from property management less interest on hybrid bonds in relation to average number of shares outstanding.
Rent charged including indexation and additional charges for investments and property tax.
Rental income before rent discounts for leased areas and assessed market rent for the vacant floor space.
Purpose: The performance measure facilitates assessment of the total potential rental income since the assessed market rent for vacant floor space is added to the rental income charged.
Equity, attributable to the Parent Company's shareholders, less hybrid bonds and with reversal of derivatives and adjusted for actual deferred tax liabilities instead of nominal deferred tax in both the Group and Nyfosa's participations in joint ventures.
Purpose: To show the fair value of net assets from a long-term perspective but under the assumption that assets are traded. Accordingly, assets and liabilities in the statement of financial position that are not adjudged to be realized, such as the fair value of derivatives, are excluded but the market value of deferred tax is included. The corresponding items in the company's participations in joint ventures are also excluded from the performance measure.
The net of interest-bearing liabilities and cash and cash equivalents at the end of the period as a percentage of the fair value of the properties in the statement of financial position.
Purpose: The net loan-to-value ratio is a measure of financial risk that indicates the degree to which the operation is encumbered with interest-bearing liabilities, but taking into account bank balances. The performance measure provides comparability with other property companies.
Signed new leases for the period less terminations and bankruptcies.
Profit after tax attributable to the Parent Company's shareholders less interest on hybrid bonds in relation to average number of shares outstanding.
An agreement between a lender and a borrower that gives the borrower the right to use funds for a certain period of time and up to a certain amount, and repay at its own discretion before a certain date.
An interest hedging instrument whereby the lender pays a variable interest up to a predetermined interest-rate level. The aim of inter est-rate caps is to reduce interest-rate risk.
Profit before tax with reversal of depreciation/amortization, financial expenses, changes in the value of properties and financial instru ments in the Group and share in profit of joint ventures, including dividends received from holdings in joint ventures, in relation financial expenses.
Purpose: The interest-coverage ratio is a measure of financial risk that shows how many times the company can pay its interest charges with its profit from operational activities.
Fee charged for such services as electricity, heating, cooling, waste collection, snow clearing, water, etc.
Interest-bearing liabilities as a percentage of equity.
Purpose: The debt/equity ratio is a measure of financial risk that shows the company's capital structure and sensitivity to movements in interest rates.
Equity as a percentage of total assets.
Purpose: To show how large a share of the company's assets is financed by equity and has been included to enable investors to be able to assess the company's capital structure.
Equity, attributable to the Parent Company's shareholders, less hy brid bonds and with reversal of derivatives and deferred tax liabilities in both the Group and Nyfosa's participations in joint ventures.
Purpose: To show the fair value of net assets from a long-term perspective. Accordingly, assets and liabilities in the statement of financial position that are not adjudged to be realized, such as the fair value of derivatives and deferred taxes, are excluded. The corre sponding items in the company's participations in joint ventures are also excluded from the performance measure.
Profit before tax excluding non-cash items in the earnings measure, such as changes in the value of properties and financial instruments, share in profit of joint ventures, depreciation of equipment, allocated opening charges for loans, including dividends received from hold ings in joint ventures and tax paid, less interest on hybrid bonds.
Purpose: The performance measure shows the amount of cash flow generated by the existing property portfolio under the company's management.
The total premises area that can potentially be leased. Purpose: Shows the total area that the company can potentially lease.
Assessed market rent for vacant floor space.
Purpose: The performance measure states the potential rental income when all floor space is fully leased.
Net operating income for the period as a percentage of total income.
Purpose: The surplus ratio shows the percentage of each Swedish krona earned that the company can keep. The performance measure is an indication of efficiency that is comparable over time and among property companies.
1) Refers to alternative performance measures according to the European Securities and Markets Authority (ESMA).
Street address: Hästholmsvägen 28 Postal address: Box 4044, SE-131 04 Nacka, Sweden Tel: +46 (0)8 406 64 00
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