Quarterly Report • Apr 25, 2023
Quarterly Report
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Interim report January – March 2023
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Rental income increased 22 percent to SEK 971 million (795)
Operating surplus increased 20 percent to SEK 667 million (557)
Income from property management decreased 2 percent to SEK 457 million (467)
Profit for the period amounted to SEK 255 million (816), corresponding to earnings per share * of SEK 0,83 (2,65)
In 12 months EPRA NRV per share has increased by 7 percent to SEK 92,08 (88,52) adjusted for dividend of SEK 3,00 per share
*) Earnings per share are the same before and after dilution
St Jörgen, Malmö
Wihlborgs is the leading property company in the Öresund region. Over 50,000 people have their workplace at one of our premises. People in Malmö, Lund, Helsingborg and Copenhagen all meet in city spaces designed by us, and our presence can also be felt in board rooms, associations and social forums as the Öresund region grows amid a wave of urban diversity and sustainability. We are a region-builder and a relations-builder.
The book value of the company's properties totals SEK 56 billion, representing an annual rental value of SEK 4.2 billion. Wihlborgs' shares are listed on the Large Cap List of Nasdaq Stockholm.
Wihlborgs specialises in efficient sub-markets in the Öresund region, where we own, manage in-house and develop commercial properties, thereby enabling tenants to grow and develop.
Wihlborgs specialises in efficient sub-markets in the Öresund region, where we own, manage in-house and develop commercial properties, thereby enabling tenants to grow and develop.
Wihlborgs is to ensure the company's and region's long-term sustainable development. Our focus is on responsible business, commitment to the region and its community, being an attractive employer and sustainable properties.
55.7
Rental income, SEK million Jan-Mar
971
Income property management, SEK million Jan-Mar
| CEO´s comments | 04 |
|---|---|
| Market comments | 05 |
| Income, expenses and profit | 06 |
| Assets | 08 |
| Sustainable business | 14 |
| Liabilities and equity | 16 |
| Financial reports | 19 |
| Key figures | 24 |
| Definitions | 26 |
| Calendar | 27 |
| Contact | 28 |
| Group key figures. SEK m | 2023 Jan-Mar |
2022 Jan-Mar |
2022/2023 Apr–Mar |
2022 Jan–Dec |
|---|---|---|---|---|
| Rental income | 971 | 795 | 3,511 | 3,335 |
| Operating surplus | 667 | 557 | 2,441 | 2,331 |
| Income property management | 457 | 467 | 1,851 | 1,861 |
| Changes in value of properties | -28 | 221 | 147 | 396 |
| Changes in value of derivatives | -99 | 340 | 215 | 654 |
| Result of the period | 255 | 816 | 1,727 | 2,288 |
| Earnings per share. SEK | 0.83 | 2.65 | 5.62 | 7.44 |
| Surplus ratio. % | 69 | 70 | 70 | 70 |
| Equity/assets ratio. % | 41.1 | 43.6 | 41.1 | 41.2 |
| Occupancy rate. %* | 94 | 92 | 94 | 93 |
| EPRA NRV per share. SEK | 92.08 | 88.52 | 92.08 | 90.64 |
*) Excluding projects and land.
| Mål | Outcome Q1 2023 | |
|---|---|---|
| A return on equity that exceeds the risk-free interest rate by not less than six percentage points, which for the beginning of 2023 corresponds to 8.51 percent |
4.3 | |
| An equity/assets ratio of no less than 30 percent | 41.1 | |
| An interest coverage ratio of no less than 2.0 | 3.4 | |
| The loan-to-value ratio is not to exceed 60 percent | 48.5 |
Despite continued uncertainty in the operating environment in the form of geopolitics, economic downturn, inflation and rising financial expenses, I can confirm that the first quarter of 2023 also noted new records for Wihlborgs.
CEO´s comments Market comments Income, expenses and profit Assets Sustainable business Liabilities and equity Financial reports Key figures Definitions Calendar Contact
Our rental income rose 22 percent to SEK 971 million, well above the income record from the fourth quarter of 2022. The indexation of leases is now being felt and new projects have started to generate income. We have also succeeded in reducing our vacancies, not just through lettings in new projects but also in the existing portfolio, where year-on-year, vacancies are down 1.7 percentage points.
Net lettings also remained positive in the quarter at SEK 6 million. High activity symbolised the quarter and many tenants are still evaluating how premises can best support their operations. Business opportunities arise in times of transition when we work closely with our customers and are ready to adapt from one day to the next. And I believe that our stable delivery stems from the fact that we are in constant change and that we accomplish this in pace with the world around us. We can't keep doing what we did yesterday; we always have to strive to improve every tiny detail. Moreover, it is fantastically stimulating to work in such an environment.
As vacancies fall, rent levels are rising. Rental income from the like-for-like portfolio increased 12.9 percent year-onyear. While indexation plays a role here, we are also noting a continued willingness to pay for the right quality. Overall, this indicates continued strong demand in all our markets.
The operating surplus for the quarter also set a record, SEK 667 million, up 20 percent year-on-year. Operating costs have risen significantly, particularly for energy, where we are continuing to work with energy efficiency improvements and price hedging. The largest cost increase was interest
expense, which increased sharply due to rising market interest rates. However, our strong operating surplus means we can absorb the increased costs, and income from property management for the quarter amounted to SEK 457 million.
In light of the strong core operations, we continue to invest in new projects. During the quarter we held four ground-breaking ceremonies: with Nederman at Rausgård 21 and Springhill at Plåtförädlingen 15 in Helsingborg; Inpac at Tomaten 1 in Lund; and at Bläckhornet 1 (Vista) in Malmö. It goes without saying that possessing the strength to continue investing on behalf of our tenants is key to our future growth, but it also helps our suppliers to retain expertise and jobs in our region. I look forward to pulling the spade out once again, as in March, we signed an agreement with Rollco to build a new, 3,600 square metre facility at Snårskogen 5 in Helsingborg. We also signed a larger agreement in Sunnanå in Malmö.
Our good position and long-term approach also enable a high level of ambition in the area of sustainability. For the years 2023–2025, we have both honed the existing targets and included additional targets to become more focused
and comprehensive in our sustainability initiatives. I am particularly proud of our high recommendation rate of 92 percent from our customers and of our continued reduction in energy use per square metre. Österport 7 in central Malmö, which we acquired last year, is one good example where the use of district heating decreased 35 percent in the first quarter compared with the corresponding period in 2022. In parallel, electricity use declined 17 percent.
The core business is flourishing, which means that the balance sheet remains robust. The equity/assets ratio and loan-to-value ratio were essentially unchanged during the quarter, at 41.1 and 48.5 percent respectively. It is also important to note that our net debt in relation to operating profit (EBITDA) fell to a multiple of 10.8. Despite the interest rate hikes, on a rolling 12-month basis, our interest coverage ratio is a multiple of 4.5 and we have unutilised credit facilities of SEK 3.1 billion. This strength allows us to focus on our tenants and how best to help them develop.
Changes in value of our properties were minimal in the quarter and amounted to SEK -28 million. Following the valuation of all of the properties by an external party at the year end, we noted that lettings and completed projects have positively affected values, which were also negatively impacted by some maintenance investments. Since we have already raised the yield requirements in the valuations several times in 2022, changes in these during the quarter were minimal.
While changing times create uncertainty, they can also spawn opportunities. These opportunities do not have to be ostentatious; they can be more mundane and part of the daily work performed by all Wihlborgs employees together with our tenants. The constant puzzle continues on several levels and, through meeting more than 2,000 Wihlborgs tenants, we can make a difference, both in terms of our own operations as well as in terms of tenants' possibilities for realising their ambitions. This is what our operations has been built to succeed with.
Ulrika Hallengren, vd
The first quarter of 2023 was dominated by continued concerns over interest rates and inflation as well as regarding general risk in the banking market. According to the Swedish National Institute of Economic Research (NIER), the Swedish economy is entering a downturn in 2023 with reductions in real wages for consumers expected to lead to significantly less consumption. The NIER projects that inflation excluding energy will be high throughout 2023 before declining to 2 percent in the second quarter of 2024. On the other hand, the good news is that the reasons behind the high inflation are beginning to reverse as international prices for shipping, energy and agricultural products are declining from previous peaks. Sweden's GDP is expected to decline in 2023, largely as a result of lower housing investment.
The NIER's Economic Tendency Survey for March 2023 provides a glimmer of light with elevated indicators in all sectors. However, the elevation is from low levels and it is only the manufacturing industry that is in a strong position as other sectors find themselves in a weak or very weak position. According to Arbetsförmedlingen (Sweden's public employment agency), the number of redundancies in Skåne rose in March to over 600, which is a rise not witnessed since the pandemic. The proportion of openly unemployed people in Skåne continues to fall and was 8.4 percent in March 2023, which is a 0.2 percentage point decline since the start of the year.
In SEPREF's (the Swedish Property Research Forum) consensus forecast for the first quarter of 2023, the prime rent in Malmö remains unchanged at SEK 3,000/m². The yield requirement for prime locations rose 0.3 percentage points to 4.5 percent compared with last quarter and 0.37 percentage points over one year. Collier's latest market report confirmed that the labour market is demonstrating resilience and that there is strong demand in the office segment for modern offices in attractive locations. Companies continue to have recruiting difficulties and an attractive office is used as a tool to attract talent. Office rents in Malmö and Gothenburg continued to rise during the quarter but remained unchanged in Stockholm. Colliers assesses the prime rent to be SEK 3,400/m² in Malmö.
Citymark's latest analysis reveals a rise in vacancies in central Malmö (CBD, Västra Hamnen, Other city centre) from 7.0 percent to 7.6 percent in the past six months. Properties with the ultimate building quality and location for the sub-market continue to have falling vacancies, while properties in lower classifications have rising vacancies.
According to Colliers, the new market outlooks have led to increased yield levels in Denmark for offices while market rents remain stable and the labour market continued to be strong. Office rents are about DKK 675–1,100/ m² in Herlev/Ballerup, DKK 700–1,250/m² in Høje-Taastrup and DKK 950–1,500/m² in Amager. Historically low office vacancies continue to be reported in central Copenhagen and greater Copenhagen. Market conditions are stable for industry premises and rent levels are DKK 450–575/m² in Ballerup and DKK 475–625/m² in Glostrup/Herlev.
The first quarter of 2023 was the weakest quarter in the property transaction market for a decade according to Colliers. Swedish transaction volumes fell 75 percent year-on-year and amounted to SEK 17 billion for the first quarter of 2023. In Denmark, the volume fell to DKK 11 billion, corresponding to a 54 percent decrease.
CEO´s comments Market comments Income, expenses and profit Assets Sustainable business Liabilities and equity Financial reports Key figures Definitions Calendar Contact
January–March 2023
Comparative figures for income statement items relate to values for the corresponding period 2022 and balance sheet items as of 2022-12-31.
Rental income amounted to SEK 971 million (795) corresponding to an increase by 22 procent. Of the rental income, service income accounted for SEK 126 million (83), whose increase is mainly due to increased additional charges to tenants of SEK 29 million as a result of increased energy costs. As of March 1, the Danish canteen operations are run by an external party. A compilation of the change in rental income compared to the previous year appears in the table below.
| Rental income Jan-Mar 2022 | 795 |
|---|---|
| Acquisitions | 47 |
| Currency effect | 12 |
| Index | 76 |
| Additional charges | 29 |
| Completed projects, new leases and renegotiations | 12 |
| Rental income Jan-Mar 2023 | 971 |
At the end of the period the occupancy rate for investment properties, excluding Projects & Land, is 94 percent (93).
During the period new leases were signed to a value of SEK 77 million (53). Lease terminations totalled SEK 72 million (26). This represents a net letting of SEK 6 million (28).
Total property costs amounted to SEK 304 million (238), which the largest increase is due to rising operating costs of SEK 44 million. The increase in operating costs stems mainly from rising energy prices, SEK 17 million, but also from the acquisitions of properties, which accounts for SEK 11 SEK million. Energy costs are included in the supplements paid by the tenants. Of the increased property tax of SEK 11 million, SEK 5 million refers to decisions from the general property assessment in Sweden during 2022 which was obtained in July 2022. Overall, acquisitions and sales of properties during the past year have led to increased property costs by SEK 17 million. Rental losses during the year amounted to SEK 2 million (0). The historical summary at the bottom of page 21 illustrates how costs vary over the different quarters of the year
The operating surplus amounted to SEK 667 million (557) representing a surplus ratio of 69 percent (70). Of the change, SEK 29 million (7) was attributable to property acquisitions and divestments, in addition, currency effects have affected by SEK 7 million (4).
The costs for central administration were SEK 23 million (22).
Net interest totalled SEK -188 million (-69), of which interest income accounted for SEK 4 million (4). The interest expense for the period, incl. realized effects from interest rate derivatives, was SEK 192 million (73). The leasehold amounted to SEK 1 million (1). During the period net payments on interest rate derivatives amounted to income of SEK 51 million (-15). At the end of the period, the average interest rate, including the cost of credit agreements, was 3,26 percent, compared with 2,59 percent at year-end.
The artistic adornments in Kvartetten (Pulpeten 5) in Hyllie are not only designed with the building's location and purpose in mind, but are also grounded in sustainability considerations beyond the everyday. The colour scheme of the bicycle room on the ground floor is inspired by the bicycle brand Bianchi and includes a tiled bicycle spa and a chandelier built from old bicycle parts.
Profit participation in joint ventures amounted to SEK 2 million (2). Income from property management amounted to SEK 457 million (467).
The pre-tax profit, i.e. after value changes on properties and derivatives, was SEK 330 million (1 028). During the period, value changes on properties amounted to SEK
-28 million (221). Changed market interest rates have entailed negative value changes on derivatives amounting to SEK -99 million (340), of which SEK -95 million (343) are attributable to interest rate derivates and SEK -3 million (-3) to other financial items.
The profit after taxes was SEK 255 million (816). Total tax amounted to SEK 75 million (212), of which current tax SEK 7 SEK million (12) and deferred tax SEK 68 million (200).
The summaries below are based on Wihlborgs' property portfolio as of 31 March 2023. Rental income relates to contracted rental income on an annual basis as of 1 April 2023.
The operating surplus is based on the properties' earning capacity on an annual basis based on rental income for April 2023, operating and maintenance costs, property administration on a rolling twelve-month basis and property tax.
Wihlborgs' property portfolio consists of commercial properties in the Öresund region, located in Malmö, Helsingborg, Lund and Copenhagen. The property portfolio 31 March 2023 consisted of 307 properties (306) with a lettable area of 2,245,000 m2 (2,229,000). 7 of the properties (7) are leasehold rights.
The properties' carrying amount was SEK 55, 701 million (55,179), which corresponds to the estimated market value. The total rental value was SEK 4,191 million (4,170) and the contracted rental income on annual basis SEK 3,860 million (3,810). The like-for-like increase in rental value increased to 10.9 percent and contracted rental income increased by 12.9 percent compared to 12 months previously.
The economic occupancy rate for Office/Retail properties was 94 percent (94) and for Logistics/Production 91 percent (92). The rental value for Office/Retail and Logistics/Production represented in total 82 respective 15 percent of total rental value.
The operating surplus from investment properties, excluding property administration and Projects/Land, is SEK 2,968 million (2,949) which with a carrying amount of SEK 53,139 million (51,483) corresponds to a running yield of 5.6 percent (5.7). Broken down by property category, this is 5.4 percent (5.6) for Office/Retail and 6.7 percent (6.9) for Logistics/ Production.
| Entire property stock | ||||||
|---|---|---|---|---|---|---|
| 2023-04-01, SEK m | 2022-04-01, SEK m | Percent | ||||
| Rental value | 4,191 | 3,465 | + 21.0 | |||
| Rental income | 3,860 | 3,168 | + 21.8 |
| Like-for-like* | ||||||
|---|---|---|---|---|---|---|
| 2023-04-01, SEK m | 2022-04-01, SEK m | Percent | ||||
| Rental value | 3,768 | 3,398 | + 10.9 | |||
| Rental income | 3,532 | 3,129 | + 12.9 | |||
*Excluding projekt & land
CEO´s comments Market comments Income, expenses and profit Assets Sustainable business Liabilities and equity Financial reports Key figures Definitions Calendar Contact
By year-end the valuation of all Wihlborgs' properties is carried out by external valuers. The valuation of the properties as of March 31, 2023 has taken place internally and has meant that the property value has decreased by SEK 28 million (+221). The assumptions regarding future indexation and yield requirements were changed gradually during 2022 but have been largely unchanged during the first quarter 2023. A positive net letting and completion of projects have affected valuations positively, while maintenance investments have had a negative impact. Projects/Land 3% Logistics/Production 15 % Hyresvärde per fastighetskategori Malmö 35% Copenhagen 24 % Hyresvärde per område Projects/Land 3% Logistics/Production 15 % Hyresvärde per fastighetskategori Malmö 35% Copenhagen 24 % Hyresvärde per område
Fair value has been determined using a combination of a yield-based method and a location-price method, in which transactions completed in the sub-markets concerned are analysed in order to calibrate the parameters for the yieldbased method. The value is considered to correspond to the yield value that is calculated from normally five-year cash flow analyses. The value of newbuild projects in progress is determined as the value as if the project were complete, less deduction of estimated remaining cost. Undeveloped land and other upgrade projects are valued according to the location-price method. The method for valuation is the same as previously. There is a comprehensive description of the method for valuation of properties on pages 82-83 and 106-107 in the Company's 2022 Annual Report. 82 % Ofce/Retail 24 % Helsingborg 17 % Lund 82 % Ofce/Retail 24 % Helsingborg 17 % Lund
As of 31 March 2023 the carrying amount for the properties is SEK 55,701 million (55,179).
| Changes in carrying amount of properties | ||||
|---|---|---|---|---|
| Changes | Group total, SEK m | |||
| Carrying amount 1 January 2023 | 55,179 | |||
| Acquisitions | 20 | |||
| Investments | 391 | |||
| Properties sold | - | |||
| Change in value | -28 | |||
| Currency translations | 139 | |||
| Carrying amount 31 March 2023 | 55,701 |
CEO´s comments Market comments Income, expenses and profit Assets Sustainable business Liabilities and equity Financial reports Key figures Definitions Calendar Contact
| Analysis per property category in each management area | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Area/ | Number of | Area, m2 | Carrying | Rental value, | Rental value, | Economic | Rental | Operating surplus | Surplus | Operating surplus | Yield excl |
| property category | properties | thousand | amount, | SEK m | SEK/m2 | occupancy | income, | incl.property | ratio, | excl.property | property |
| SEK m | rate, % | SEK m | admin., SEK m | % | admin., SEK m | admin., % | |||||
| Malmö | |||||||||||
| Office/Retail | 52 | 458 | 19,263 | 1,286 | 2,806 | 95 | 1,226 | 958 | 78 | 1,000 | 5.2 |
| Logistics/Production | 31 | 146 | 2,044 | 173 | 1,187 | 92 | 160 | 125 | 78 | 135 | 6.6 |
| Project & Land | 20 | 29 | 852 | 26 | 907 | - | 6 | -7 | - | -4 | - |
| Total Malmö | 103 | 633 | 22,159 | 1,485 | 2,347 | 94 | 1,391 | 1,077 | 77 | 1,131 | 5.1 |
| Helsingborg | |||||||||||
| Office/Retail | 39 | 284 | 8,533 | 635 | 2,238 | 91 | 581 | 445 | 77 | 463 | 5.4 |
| Logistics/Production | 56 | 359 | 3,469 | 359 | 998 | 89 | 319 | 227 | 71 | 246 | 7.1 |
| Project & Land | 13 | 4 | 406 | 5 | 1,072 | - | 4 | 1 | - | 2 | - |
| Total Helsingborg | 108 | 648 | 12,408 | 999 | 1,542 | 91 | 904 | 673 | 74 | 710 | 5.7 |
| Lund | |||||||||||
| Office/Retail | 26 | 233 | 8,345 | 657 | 2,821 | 94 | 614 | 442 | 72 | 483 | 5.8 |
| Logistics/Production | 4 | 23 | 271 | 23 | 996 | 98 | 22 | 17 | 74 | 18 | 6.7 |
| Project & Land | 4 | 7 | 362 | 14 | 2,101 | - | 1 | -3 | - | -2 | - |
| Total Lund | 34 | 262 | 8,978 | 694 | 2,644 | 92 | 638 | 455 | 71 | 499 | 5.6 |
| Copenhagen | |||||||||||
| Office/Retail | 49 | 572 | 10,314 | 885 | 1,548 | 95 | 838 | 552 | 66 | 573 | 5.6 |
| Logistics/Production | 9 | 61 | 901 | 67 | 1,103 | 95 | 64 | 48 | 76 | 50 | 5.5 |
| Project & Land | 4 | 69 | 941 | 61 | 877 | - | 25 | 11 | - | 11 | - |
| Total Copenhagen | 62 | 702 | 12,156 | 1,014 | 1,443 | 91 | 927 | 611 | 66 | 634 | 5.2 |
| Total Wihlborgs | 307 | 2,245 | 55,701 | 4,191 | 1,867 | 92 | 3,860 | 2,816 | 73 | 2,975 | 5.3 |
| Total excluding | |||||||||||
| projects and land | 266 | 2,136 | 53,139 | 4,085 | 1,913 | 94 | 3,824 | 2,813 | 74 | 2,968 | 5.6 |
| Analysis of lettable space per area and category of use | |||||||||||
| Area | Office, m2 | Retail, m2 | Logistics/Production, m2 | Education/Health care, m2 | Misc., m2 | Total, m2 | Share, % | ||||
| Malmö1 | 363,917 | 44,467 | 167,741 | 39,642 | 17,075 | 632,841 | 28 | ||||
| Helsingborg2 | 225,798 | 78,619 | 289,283 | 41,981 | 11,988 | 647,669 | 29 | ||||
| Lund3 | 198,853 | 13,409 | 36,500 | 4,427 | 9,178 | 262,367 | 12 | ||||
| Copenhagen4 | 517,127 | 8,396 | 124,605 | 12,514 | 39,617 | 702,259 | 31 | ||||
| Total | 1,305,695 | 144,891 | 618,129 | 98,564 | 77,857 | 2,245,136 | 100 | ||||
| Share, % | 58 | 7 | 28 | 4 | 3 | ||||||
| 1) Miscellaneous area in Malmö includes 10,275 m2 | hotel. | 3) Miscellaneous area in Lund includes 8,215 m2 | hotel. |
2) Miscellaneous area in Helsingborg includes 1,819 m2 residential. 4) Miscellaneous area in Copenhagen includes 5,600 m2 hotel.
At Snårskogen 5 in Väla Norra in Helsingborg, Wihlborgs will build a new facility for the industrial company Rollco, which has experienced long-term positive growth and therefore needs additional space. The new building will comprise 1,400 m² of office premises and 2,200 m² of production and warehouse facilities, and will be certified Miljöbyggnad Silver.
Investments in the property portfolio totalled SEK 391 million (270). Approved investments in ongoing projects amount to SEK 3,416 million, of which 860 million had been invested at the end of period.
The Groups liquid assets totalled SEK 224 million (159) at the end of the year. At the end of the period unutilized credit facilities, including unutilized overdraft facilities of SEK 394 million (361), amounted to SEK 3,101 million (2,856).
| Investments in progress >SEK 50 million, 31 March 2023 | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Property | Category of use | Municipality | Completion date |
Rentable area, m2 |
Occupancy rate, % |
Estimated investment, SEK m* |
Expended 2023-03-31, SEK m |
||
| Huggjärnet 13 | Logistics/Production | Helsingborg | Q2 2023 | 8 | 80 | 108 | 78 | ||
| Snårskogen 5 | Logistics/Production | Helsingborg | Q2 2023 | 2 | 100 | 60 | 45 | ||
| Kunskapen 1 | Office/Retail | Lund | Q4 2023 | 6 | 50 | 244 | 156 | ||
| Plåtförädlingen 15 | Logistics/Production | Helsingborg | Q4 2023 | 9 | 75 | 141 | 33 | ||
| Tomaten 1 | Logistics/Production | Lund | Q2 2024 | 6 | 100 | 137 | 20 | ||
| Rausgård 21 | Logistics/Production | Helsingborg | Q3 2024 | 25 | 100 | 420 | 73 | ||
| Snårskogen 5 | Logistics/Production | Helsingborg | Q3 2024 | 4 | 100 | 78 | 1 | ||
| Sunnanå 12:54 | Logistics/Production | Malmö | Q1 2025 | 17 | 100 | 302 | 1 | ||
| Bläckhornet 1 | Office/Retail | Malmö | Q4 2025 | 17 | 0 | 884 | 27 | ||
| Posthornet 1 | Office/Retail | Lund | Q4 2025 | 10 | 0 | 448 | 9 | ||
| Total | 111,400 | 2,901 | 445 |
*Including land
CEO´s comments Market comments Income, expenses and profit Assets Sustainable business Liabilities and equity Financial reports Key figures Definitions Calendar Contact
Rausgård 21, Helsingborg Bläckhornet 1 (Vista), Malmö
During the first quarter one property was acquired, the project property Tomaten 1 in Lund.
| Property transactions Januari–March 2023 | |||||||
|---|---|---|---|---|---|---|---|
| Quarter | Property | Municipality | Management area | Category | Area, m2 Price, SEK | Operating surplus | |
| m | 2023, SEK m1 | ||||||
| Acquisitions | |||||||
| Q1 | Tomaten 1 | Lund | Lund Centrum/Gastelyckan Land | - | 20 | - | |
| Acquisitions total 2023 | - | 20 | - | ||||
| Sales | |||||||
| Q1 | - | - | - | - | - |
Sales total 2023 - . .
1) Operating surplus that are included in the results for the period.
CEO´s comments Market comments Income, expenses and profit Assets Sustainable business Liabilities and equity Financial reports Key figures Definitions Calendar Contact
Bläckhornet 1 (Vista), Malmö Tomaten 1, Lund
Wihlborgs has adopted new sustainability targets for the years 2023–2025. The new targets are based on a review of Wihlborgs' existing sustainability framework, and the input and priorities of important stakeholders.
Two of the targets – the proportion of environmentally certified office properties and CO2 emissions (Scopes 1 and 2) kg/m² – have been tightened with the aim of further raising the level of ambition in the areas in which Wihlborgs has good potential to make a difference.
In addition, two new targets for 2025 have been formulated to further support the entire sustainability agenda. One of these targets is focused on reducing the average energy consumption of Wihlborgs' properties to 85 kWh/m². The other target concerns a sustainability evaluation of Wihlborgs' suppliers, where all strategic suppliers (mainly construction contractors and other players who work in the premises) must be approved.
We see an increasing degree of sustainability reporting in the industry, but it is still difficult to make comparisons because we measure in slightly different ways. Here, a calibration will take place over time as the measurement data becomes better and also more relevant. We try to contribute to the development of the industry and at the same time focus on the efforts that make a real difference.
Ulrika Hallengren, CEO, on the new sustainability targets
Wihlborgs compiles an annual sustainability report prepared according to the Annual Accounts Act, GRI Standards, EPRA Sustainability Best Practice Recommendations (sBPR) and TCFD guidelines for reporting climate-related risks. We follow up on prioritised sustainability topics and goals in each interim report. We also provide information about current activities and events during the quarter that have a bearing on our sustainability agenda. More information about our sustainability agenda is available on Wihlborgs' website. Read more at www.wihlborgs.se/en/about-us/sustainability/
CEO´s comments Market comments Income, expenses and profit Assets Sustainabl Sustainable business e Liabilities and equity Financial reports Key figures Definitions Calendar Contact
The targets concerning energy consumption, climate impact, environmental certification and supplier evaluation are followed up each quarter.
Energy consumption per square metre has declined about 4 percent, mainly as a result of lower use of district heating and gas for heating. Part of this concerns continuing to make energy-efficiency enhancements, such as the installation of Wihlborgs' innovative reversible heat pump in more properties. At Bricks in Lund, this pump lowered energy consumption by almost 800 MWh in the first quarter.
The climate target was tightened from 1.5 kg CO2/m² to 1.0 kg CO2/m² on an annual basis. Unfortunately, emissions increased in the first quarter, primarily due to a higher proportion of fossil fuels in Danish district heating plants.
Wihlborgs has had a strong start to 2023 in terms of certifications of office properties in Sweden. Ten existing properties have been approved in accordance with Miljöbyggnad In-Use, of which one with Gold, one with Bronze and the others with Silver. Five new production projects have been approved and two completed buildings have been verified in conjunction with follow-up. At the end of the quarter, the certification level was 59 percent of Swedish office space, compared with 49 percent at the end of the year. Work is continuing at a brisk pace with the goal of certifying 90 percent of the Swedish office properties by 2025.
An initial compilation shows that 72 percent of the strategic suppliers could be approved without a remark in Wihlborgs' updated process for sustainability evaluation. By clarifying Wihlborgs' expectations and through continued dialogue with suppliers, the ambition is to gradually increase this percentage.
In 2022, the global non-profit organisation Carbon Disclosure Project (CDP) ranked the Wihlborgs' supplier commitment at the absolute top and the company was named a "Supplier Engagement Leader." The ranking evaluates the company's supplier-chain commitment in climate issues based on CDP's climate change survey, which covers governance, targets, emissions from the value chain (Scope 3) and strategies for supplier engagement, and factors in the company's climate efforts.
Jörgen Mårtensson, Procurement Director at Wihlborgs.
*Strategic supplyers (approx. 40% of total number of suppliers), who perform projects/work on our properties.
As of 31 March 2023 equity totalled SEK 23,642 million (23,380). The equity/assets ratio stood at 41.1 percent (41.2).
Total debt: 27.0 bn
The group's borrowings as of 31 March amounted to SEK 27,024 million (26,806) with an average interest rate including costs for credit agreements of 3.26 percent (2.59).
With consideration to the company's net debt of SEK 27.0 billion, the loan-to-value ratio is 48.5 percent (48.6) as a percentage of property values.
The loans' average fixed interest period including effects of derivatives on 31 March 2023 amounted to 2.3 years (2.0). The average loan maturity, including commited credit facilities, amounted to 6.2 years (6.1). 9% of outstanding borrowings come from the bond market. During 2023 bonds amounting to SEK 820 m are due for repayment.
| Structure of interest and loan maturities as of 31 March 2023 | ||||||
|---|---|---|---|---|---|---|
| Loan amount, | Av. interest | Credit ag., | Utilised, | |||
| SEK m | ||||||
| 15,991 | 4.03 | 820 | 820 | |||
| 1,788 | 1.43 | 5,834 | 5,067 | |||
| 1,788 | 1.44 | 11,983 | 9,650 | |||
| 1,252 | 1.62 | 603 | 603 | |||
| 1,806 | 3.27 | 602 | 602 | |||
| 4,399 | 2.07 | 10,282 | 10,282 | |||
| 27,024 | 3.21 | 30,125 | 27,024 | |||
| SEK m | Interest maturity rate, %* |
Loan maturity SEK m |
*) Excluding costs for credit agreements.
Wihlborgs use interest rate derivatives in order to reduce the risk level in the loan portfolio. A summary of the terms is shown in the table below.
| Interest rate derivatives portfolio 31 March 2023 | ||||
|---|---|---|---|---|
| Interest rate swaps | ||||
| Maturity | Amount, SEK m | Interest, % | ||
| 2023 | 2,130 | 0.41 | ||
| 2024 | 1,788 | 0.41 | ||
| 2025 | 1,788 | 0.42 | ||
| 2026 | 1,252 | 0.59 | ||
| 2027 | 1,806 | 2.22 | ||
| >2027 | 2,660 | 0.96 | ||
| Total | 11,424 | 0.85 |
Changing market interest rates have meant decreased value in Wihlborgs' interest rate derivative portfolio, which at the end of the period amounted to 599 million (695).
Interest-rate derivatives are recognised at fair value in accordance with IFRS 9. All derivatives are classified in level 2 in accordance with IRS 13. For information on the valuation approach for interest rate derivatives, see page 100 of the 2022 Annual Report.
Average net debt relative to rolling 12-month operating income amounted to 10.8 times (11.0). The media company BTJ is moving this autumn into Cube (Nya
Vattentornet 4), one of Wihlborg's three properties on Mobilvägen at Ideon in Lund.
CEO´s comments Market comments Income, expenses and profit Assets Sustainable business Liabilities and equity Financial reports Key figures Definitions Calendar Contact
At the end of the period, the number of FTEs at Wihlborgs was 215 (256) of which 63 (105) were in property service. From 1 March, the canteen operations in Denmark are run by an external party. The transition has also included around forty employees.
Of the total number of FTEs 78 (77) were in Malmö, 36 (38) in Helsingborg, 32 (32) in Lund and 69 (109) in Copenhagen. The average age of employees is 44 år and women make up 39 (41) percent.
The parent company owns no properties, but deals with questions relating to the stock market and joint Group functions for administration, management and borrowing. The parent company's turnover is mostly related to the billing of services to Group companies.
The parent company has invested SEK 0 million (1,225), including shareholder contribution, in shares in subsidiaries and other shares.
The parent company's income statement and balance sheet are found on page 22.
A description of all participations in joint ventures and holdings in joint operations held by Wihlborgs will be found on pages 108–109 in the Company's 2022 Annual Report.
The largest shareholder in Wihlborgs is Backahill, representing the Paulsson family, with 11.1 percent of the shares outstanding.
Shares held by owners registered abroad account for 36 percent. The number of shareholders is approximately 31,000.
| 4,611 4,564 3,710 85,346 103,678 |
1.5 1.5 1.2 27.7 33.7 |
|---|---|
| 4,821 | 1.6 |
| 7,285 | 2.4 |
| 9,199 | 3.0 |
| 15,921 | 5.2 |
| 16,897 | 5.5 |
| 17,319 | 5.6 |
| 34,076 | 11.1 |
| thousands | equity and votes, % |
| Number of shares, | Proportion of |
2022-01-01 – 2023-03-31
Wihlborgs interim report January-March 2023 17
Wihlborgs' future development and ability to reach its operational goals are influenced by numerous risks and uncertainties. By systematically reviewing, analysing and managing these risks and uncertainties, it is possible to limit them and concurrently create the prerequisites for continued growth.
The risks assessed as having a significant influence on the Group's earnings trend and cash flow are the variations in rental income, property costs and interest-rates. The properties are measured at fair value with changes in value in the income statement resulting in positive and negative impacts on earnings during the year. Property valuation also impacts Wihlborgs' financial position and key metrics. The extent of changes in value is partly determined by Wihlborgs' own capacity, through alteration and upgrading of properties, as well as by leases and client structures, to increase the properties' market value, and partly by external factors that affect supply and demand in the property markets where the company is active. Property valuation should take in to account an interval of uncertainty, which in a functioning market, typically consists of +/-5–10% to reflect the inherent uncertainty of assumptions and estimates.
In addition to the above, risks also include financing risks. Wihlborgs is dependent on external loans to meet its undertakings and complete transactions. Risks are managed using Wihlborgs' financial policy, which stipulates objectives, guidelines and risk limits for Wihlborgs' financial activities.
In pages 84–89 and 101–102 in the Company's 2022 Annual Report there is a comprehensive description of the risks facing the Group, how these are handled and a grading with regard to the assessed impact on the business and the probability that the risk will occur.
Wihlborgs follows the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB), as well as interpretations issued by the IFRS Interpretations Committee (IFRIC) as endorsed by the European Union. The Interim Report has been prepared in accordance with IAS 34 Interim Financial Reporting and the Swedish Annual Accounts Act. Information under IAS 34 p.16A is submitted in the notes and elsewhere in the interim report.
The Group applies the same accounting policies and valuation methods as in the most recent annual report. Wihlborgs assesses that none of the new or amended standards approved by the EU, or interpretations from the IFRS Interpretations Committee, that entered force after 1 January 2023, affect its results or financial position in any material sense.
The Group applies the Swedish Financial Reporting Board's recommendation RFR 1, Supplementary Accounting Rules for Corporate Groups and the Parent Company applies RFR 2. The financial reports are found on page 19-22.
Malmö 25 April 2023 Wihlborgs Fastigheter AB (publ)
Ulrika Hallengren, CEO
This interim report has not been reviewed by the company's auditors.
| SEK m | 2023 Jan-Mar 3 months | 2022 Jan-Mar 3 months | 2022/2023 Apr-Mar 12 months | 2022 Jan-Dec 12 months |
|---|---|---|---|---|
| Rental income | 971 | 795 | 3,511 | 3,335 |
| Operating costs | -174 | -130 | -565 | -521 |
| Repairs and maintenance | -30 | -24 | -121 | -115 |
| Property tax | -61 | -50 | -237 | -226 |
| Property administration | -39 | -34 | -147 | -142 |
| Total property costs | -304 | -238 | -1,070 | -1,004 |
| Operating surplus | 667 | 557 | 2,441 | 2,331 |
| Central administration | -23 | -22 | -89 | -88 |
| Interest income | 4 | 4 | 14 | 14 |
| Interest expenses | -192 | -73 | -518 | -399 |
| Leasehold rent | -1 | -1 | -5 | -5 |
| Share in results of joint ventures | 2 | 2 | 8 | 8 |
| Income of property management | 457 | 467 | 1,851 | 1,861 |
| Change in value of properties | -28 | 221 | 147 | 396 |
| Change in value of derivatives | -99 | 340 | 215 | 654 |
| Pre-tax profit | 330 | 1,028 | 2,213 | 2,911 |
| Current tax | -7 | -12 | -39 | -44 |
| Deferred tax | -68 | -200 | -447 | -579 |
| Profit for the period1 | 255 | 816 | 1,727 | 2,288 |
| OTHER TOTAL PROFIT LOSS | ||||
| Items that will be reclassified to profit or loss for the year: | ||||
| Translation differences on recalculation of foreign operations | 56 | 40 | 399 | 383 |
| Hedging of currency risk in foreign operations | -58 | -43 | -395 | -380 |
| Tax attributable to items that will be reclassified to profit or loss for the year | 9 | 8 | 64 | 63 |
| Other comprehensive income for the period | 7 | 5 | 68 | 66 |
| Total comprehensive income for the period1 | 262 | 821 | 1,795 | 2,354 |
| Earnings per share2 | 0.83 | 2.65 | 5.62 | 7.44 |
| No. of shares at end of the period, thousands3 | 307,427 | 307,427 | 307,427 | 307,427 |
| Average no. of shares, thousands3 | 307,427 | 307,427 | 307,427 | 307,427 |
1) The entire profit/comprehensive ncome is attributable to the parent company's shareholders.
2) Key ratios per share have been calculated based on a weighted average number of shares during the period. There are no outstanding subscription options, convertibles or other potential ordinary shares and accordingly, no dilution effects to take into consideration.
3) Recalculation has been made for completed share split 2:1 in May 2022.
CEO´s comments Market comments Income, expenses and profit Assets Sustainable business Liabilities and equity Financi Financial reports al Key figures Definitions Calendar Contact
| Consolidated balance sheet summary | |||||
|---|---|---|---|---|---|
| SEK m | 2023-03-31 | 2022-03-31 | 2022-12-31 | ||
| ASSETS | |||||
| Investment properties | 55,701 | 50,618 | 55,179 | ||
| Right-of-use assets | 145 | 148 | 146 | ||
| Other fixed assets | 394 | 383 | 391 | ||
| Derivatives | 604 | 374 | 696 | ||
| Current receivables | 406 | 329 | 238 | ||
| Liquid assets | 224 | 316 | 159 | ||
| Total assets | 57,474 | 52,168 | 56,809 | ||
| EQUITY AND LIABILITIES | |||||
| Equity | 23,642 | 22,769 | 23,380 | ||
| Deferred tax liability | 5,266 | 4,819 | 5,180 | ||
| Borrowings | 27,024 | 23,162 | 26,806 | ||
| Lease liability | 144 | 146 | 144 | ||
| Derivatives | 5 | 0 | 1 | ||
| Other long-term liabilities | 44 | 44 | 43 | ||
| Current liabilities | 1,349 | 1,228 | 1,255 | ||
| Total equity & liabilities | 57,474 | 52,168 | 56,809 |
| Consolidated statement of changes in equity | ||||||
|---|---|---|---|---|---|---|
| SEK m | 2023 Jan-Mar | 2022 Jan–Mar | 2022 Jan-Dec | |||
| Total equity at beginning of period | 23,380 | 21,948 | 21,948 | |||
| Equity attributable to parent company's shareholders |
||||||
| Opening amount | 23,380 | 21,948 | 21,948 | |||
| Dividend paid* | - | - | -922 | |||
| Profit for the period | 255 | 816 | 2,288 | |||
| Other comprehensive income | 7 | 5 | 66 | |||
| Total equity at end of period | 23,642 | 22,769 | 23,380 |
*) All shares are ordinary shares
| Consolidated cash flow statement summary | |||||
|---|---|---|---|---|---|
| SEK m | 2023 Jan-Mar | 2022 Jan-Mar | 2022 Jan-Dec | ||
| Operating activities | |||||
| Operating surplus | 667 | 557 | 2,331 | ||
| Central administration | -23 | -22 | -88 | ||
| Non-cash items | 5 | 3 | 16 | ||
| Interest recieved | 1 | 30 | 40 | ||
| Interest paid | -196 | -80 | -406 | ||
| Income tax paid | -22 | -11 | -62 | ||
| Change in operating receivables | -54 | -73 | -88 | ||
| Change in operating liabilities | 18 | 79 | 199 | ||
| Cash flow from operating activities | 396 | 483 | 1,942 | ||
| Investment activities | |||||
| Acquisitions of properties | -20 | 0 | -2,438 | ||
| Investments in existing properties | -391 | -270 | -1,518 | ||
| Sales of properties | 0 | 1 | 97 | ||
| Change in other non-current assets | -4 | -1 | -1 | ||
| Cash flow from investment activities | -415 | -270 | -3,860 | ||
| Financing activities | |||||
| Dividends paid | 0 | - | -922 | ||
| Change in borrowing | 1,438 | 2,666 | 8,194 | ||
| Loan repayments | -1,355 | -2,877 | -5,504 | ||
| Change in other long-term liabilities | 1 | -1 | -6 | ||
| Cash flow from financing activities | 84 | -212 | 1,762 | ||
| Cash flow for the period | 65 | 1 | -156 | ||
| Opening cash flow | 159 | 315 | 315 | ||
| Closing cash flow | 224 | 316 | 159 |
| Historical summary of last eight quarters | ||||||||
|---|---|---|---|---|---|---|---|---|
| SEK m | Q1 2023 | Q4 2022 | Q3 2022 | Q2 2022 | Q1 2022 | Q4 2021 | Q3 2021 | Q2 2021 |
| Rental income | 971 | 888 | 848 | 804 | 795 | 770 | 813 | 739 |
| Operating costs | -174 | -151 | -125 | -115 | -130 | -118 | -99 | -98 |
| Repairs and maintenance | -30 | -39 | -29 | -23 | -24 | -34 | -24 | -21 |
| Property tax | -61 | -57 | -67 | -52 | -50 | -45 | -49 | -49 |
| Property administration | -39 | -39 | -33 | -36 | -34 | -36 | -29 | -34 |
| Operating surplus | 667 | 602 | 594 | 578 | 557 | 537 | 612 | 537 |
| Income from property management | 457 | 436 | 475 | 483 | 467 | 443 | 513 | 443 |
| Profit for the period | 255 | 290 | 449 | 733 | 816 | 1,668 | 673 | 529 |
| Surplus ratio, % | 68.7 | 67.8 | 70.0 | 71.9 | 70.1 | 69.7 | 75.3 | 72.7 |
| Investment yield, % | 4.8 | 4.4 | 4.5 | 4.5 | 4.4 | 4.4 | 5.2 | 4.6 |
| Equity/assets ratio, % | 41.1 | 41.2 | 41.0 | 42.1 | 43.6 | 42.9 | 41.5 | 40.5 |
| Return on equity, % | 4.4 | 5.0 | 7.9 | 12.9 | 14.6 | 31.6 | 13.5 | 10.7 |
| Earnings per share, SEK1 | 0.83 | 0.94 | 1.46 | 2.38 | 2.66 | 5.43 | 2.19 | 1.72 |
| Income property management per share, SEK1 | 1.49 | 1.42 | 1.55 | 1.57 | 1.52 | 1.44 | 1.67 | 1.44 |
| Cash flow fr operating activities per share, SEK1 | 1.29 | 1.69 | 1.99 | 1.07 | 1.57 | 1.82 | 1.46 | 1.20 |
| EPRA NRV per share, SEK1 | 92.08 | 90.64 | 89.28 | 87.60 | 88.52 | 86.33 | 79.84 | 77.24 |
| Share price as % of EPRA NRV | 86.2 | 86.6 | 75.4 | 81.7 | 111.4 | 119.0 | 109.2 | 120.2 |
| Carrying amount of properties | 55,701 | 55,179 | 54,488 | 51,760 | 50,618 | 50,033 | 47,741 | 47,056 |
| Equity | 23,642 | 23,380 | 23,077 | 22,607 | 22,769 | 21,948 | 20,278 | 19,600 |
| Total assets | 57,474 | 56,809 | 56,342 | 53,744 | 52,168 | 51,152 | 48,832 | 48,411 |
CEO´s comments Market comments Income, expenses and profit Assets Sustainable business Liabilities and equity Financi Financial reports al Key figures Definitions Calendar Contact
Definitions of key ratios are available on page 24-25.
1) Recalculation has been made for completed share split 2:1 in May 2022.
| Consolidated segment reporting January–March | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Property management | Malmö | Helsingborg | Lund | Copenhagen | Total | |||||
| SEK m | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 |
| Rental income | 346 | 287 | 226 | 195 | 161 | 142 | 237 | 171 | 971 | 795 |
| Property costs | -87 | -72 | -69 | -57 | -55 | -42 | -93 | -66 | -304 | -238 |
| Operating surplus | 260 | 215 | 157 | 138 | 106 | 100 | 144 | 105 | 667 | 557 |
In the Group's internal reporting, activities are divided into the above segments, which are the same as described in the latest annual report. For a more detailed description of segments, see the annual report for 2022 pages 45-67. The total operating surplus shown above corresponds with the operating surplus recorded in the income statement.
The difference between the operating surplus of SEK 667 million (557) and the pre-tax profit of SEK 330 million (1,028) consists of central administration SEK -23 million (-22), financial net SEK -189 million (-70), share in results SEK 2 million (2) and changes in value of properties and derivatives SEK -127 million (561).
CEO´s comments Market comments Income, expenses and profit Assets Sustainable business Liabilities and equity Financi Financial reports al Key figures Definitions Calendar Contact
| Parent company's income statement summary | ||||||
|---|---|---|---|---|---|---|
| SEK m | Jan-Mar 2023 | Jan-Mar 2022 | Jan-Dec 2022 | |||
| Income | 57 | 53 | 219 | |||
| Expenses | -55 | -52 | -212 | |||
| Operating profits | 2 | 1 | 7 | |||
| Financial income | 152 | 421 | 2,506 | |||
| Financial expenses | -304 | -112 | -726 | |||
| Pre-tax profit | -150 | 310 | 1,787 | |||
| Appropriations | – | – | 297 | |||
| Tax | 16 | -71 | -135 | |||
| Profit for the period | -134 | 239 | 1,949 |
| Parent company's balance sheet summary | |||||
|---|---|---|---|---|---|
| SEK m | 2023-03-31 | 2022-03-31 | 2022-12-31 | ||
| Participations in Group companies | 10,651 | 9,431 | 10,651 | ||
| Receivables fr Group companies | 17,490 | 15,662 | 17,306 | ||
| Derivatives | 604 | 374 | 696 | ||
| Other assets | 294 | 272 | 291 | ||
| Cash and bank balances | 99 | 198 | 41 | ||
| Total assets | 29,138 | 25,937 | 28,985 | ||
| Equity | 7,638 | 6,984 | 7,772 | ||
| Liabilities to credit institutions | 19,314 | 16,597 | 19,031 | ||
| Derivatives | 5 | 0 | 1 | ||
| Liabilities to Group companies | 1,993 | 2,209 | 1,962 | ||
| Other liabilities | 188 | 147 | 219 | ||
| Total equity and liabilities | 29,138 | 25,937 | 28,985 |
| Key figures for the group | ||||
|---|---|---|---|---|
| SEK m | Jan-Mar | Jan-Mar | Apr-Mar | Jan-Dec |
| 2023 | 2022 | 2022/2023 | 2022 | |
| Financial | ||||
| Return on equity, % | 4,3 | 14,6 | 7,4 | 10,1 |
| Return on total capital, % | 4,9 | 6,6 | 5,2 | 5,5 |
| Equity/assets ratio, % | 41,1 | 43,6 | 41,1 | 41,2 |
| Interest coverage ratio, multiple | 3,4 | 7,3 | 4,5 | 5,6 |
| Leverage properties, % | 48,5 | 45,8 | 48,5 | 48,6 |
| Debt/equity ratio, multiple | 1,1 | 1,0 | 1,1 | 1,2 |
| Share-related1 | ||||
| Earnings per share, SEK | 0,83 | 2,65 | 5,62 | 7,44 |
| Earnings per share before tax, SEK | 1,07 | 3,34 | 7,20 | 9,47 |
| EPRA EPS, SEK | 1,58 | 1,35 | 5,68 | 5,45 |
| Cash flow from operations per share, SEK | 1,29 | 1,57 | 6,03 | 6,32 |
| EPRA NDV (net disposal value) per share, SEK | 76,90 | 74,06 | 76,90 | 76,05 |
| EPRA NRV (net reinstatement value) per share, SEK | 92,08 | 88,52 | 92,08 | 90,64 |
| Market value per share, SEK | 79,35 | 98,65 | 79,35 | 78,50 |
| Proposed dividend per share, SEK | - | - | - | 3,10 |
| Dividend yield, % | - | - | - | 3,9 |
| Total return from share, % | - | - | - | -20,6 |
| P/E-ratio I, multiple | 23,9 | 9,3 | 14,1 | 10,5 |
| P/E-ratio II, multiple | 12,6 | 18,3 | 14,0 | 14,4 |
| Number of shares at the end of period, thousands | 307,427 | 307,427 | 307,427 | 307,427 |
| Average number of shares, thousands | 307,427 | 307,427 | 307,427 | 307,427 |
| Property-related | ||||
| Number of properties | 307 | 298 | 307 | 306 |
| Carrying amount of properties, SEK m | 55,701 | 50,618 | 55,701 | 55,179 |
| Estimated investment yield, % – all properties | 5,1 | 4,5 | 5,1 | 5,0 |
| Estimated direct return, % – excl project properties | 5,3 | 4,8 | 5,3 | 5,4 |
| Lettable area, m2 | 2,245,136 | 2,142,915 | 2,245,136 | 2,228,929 |
| Rental income, SEK per m2 | 1,867 | 1,617 | 1,868 | 1,871 |
| Operating surplus, SEK per m2 | 1,254 | 1,062 | 1,254 | 1,245 |
| Financial occupancy rate, % – all properties | 92 | 91 | 92 | 91 |
| Financial occupancy rate, % – excl project properties | 94 | 92 | 94 | 93 |
| Estimated surplus ratio, % | 74 | 72 | 74 | 73 |
| Employees | ||||
| Number of FTEs at period end | 215 | 255 | 215 | 256 |
1) Recalculation has been made for completed share split 2:1 in May 2022.
Andreas Schönström, municipal commissioner in Malmö, Jimmy Bengtsson, CEO of Veidekke and Ulrika Hallengren broke ground in March for Vista (Bläckhornet 1), Wihlborgs' fourth office building in Hyllie, using electrically run excavators. The mobility hub on the lower floors is now beginning to be constructed. In the first quarter, ground was broken for three additional tenants: Inpac (Tomaten 1, Lund), Springhill (Plåtförädlingen 15, Helsingborg), and Nederman (Rausgård 21, Helsingborg).
| Key figures | |
|---|---|
| -- | ------------- |
The basis for key financial ratios that Wihlborgs present in the Interim report January-March 2023 on page 22, are shown below. Recalculation has been made of historical key figures per share for completed share split 2:1 in May 2022.
The following financial targets have been established by the Board:
*) Risk-free interest rate is defined as the rate on a 5-year Swedish government bond.
| Unless otherwise stated, amounts are in SEK million. | 2023-03-31 | 2022-03-31 | 2022-12-31 |
|---|---|---|---|
| Return on equity | |||
| Profit for the period | 255 | 816 | 2,288 |
| Annualized | 1,020 | 3,264 | 2,288 |
| Equity, opening balance | 23,380 | 21,948 | 21,948 |
| Equity, closing balance | 23,642 | 22,769 | 23,380 |
| Average equity | 23,511 | 22,359 | 22,664 |
| Return on equity, % | 4.3 | 14.6 | 10.1 |
| Return on capital employed | |||
| Profit before tax | 330 | 1,028 | 2,911 |
| Interest expense (incl value changes interest derivatives) | 291 | -267 | -255 |
| Total | 621 | 761 | 2,656 |
| Annualized | 2,484 | 3,044 | 2,656 |
| Total assets, opening balance | 56,809 | 51,152 | 51,152 |
| Total assets, closing balance | 57,474 | 52,168 | 56,809 |
| Non-interest bearing debt, opening balance | -6,465 | -5,670 | -5,764 |
| Non-interest bearing debt, closing balance | -6,647 | -5,704 | -6,465 |
| Average capital employed | 50,586 | 45,973 | 47,866 |
| Return on capital employed, % | 4.9 | 6.6 | 5.5 |
| Equity/assets ratio | |||
| Equity | 23,642 | 22,769 | 23,380 |
| Total assets | 57,474 | 52,168 | 56,809 |
| Equity/assets ratio, % | 41.1 | 43.6 | 41.2 |
| Interest coverage ratio | |||
| Income from property management | 457 | 467 | 1,861 |
| Interest expense | 193 | 74 | 404 |
| Total | 650 | 541 | 2,265 |
| Interest expense | 193 | 74 | 404 |
| Interest coverage ratio, multiple | 3.4 | 7.3 | 5.6 |
| Leverage properties | |||
| Borrowings | 27,024 | 23,162 | 26,806 |
| Net value investement properties | 55,701 | 50,618 | 55,179 |
| Leverage properties, % | 48.5 | 45.8 | 48.6 |
| Debt/equity ratio | |||
| Interest-bearing liabilities | 27,180 | 23,320 | 26,962 |
| Equity | 23,642 | 22,769 | 23,380 |
| Debt/equity ratio, multiple | 1.1 | 1.0 | 1.2 |
CEO´s comments Market comments Income, expenses and profit Assets Sustainable business Liabilities and equity Financial reports Key figures ey Definitions Calendar Contact
| 2023-03-31 | 2022-03-31 | 2022-12-31 | |
|---|---|---|---|
| Earnings per share | |||
| Profit for the period | 255 | 816 | 2,288 |
| Average number of shares, thousands | 307,427 | 307,427 | 307,427 |
| Earnings per share, SEK | 0.83 | 2.65 | 7.44 |
| Earnings per share before tax | |||
| Profit before tax | 330 | 1,028 | 2,911 |
| Average number of shares, thousands | 307,427 | 307,427 | 307,427 |
| Earnings per share before tax, SEK | 1.07 | 3.34 | 9.47 |
| EPRA EPS | |||
| Income from property management | 457 | 467 | 1,861 |
| Tax depreciation, direct tax deductions etc | -337 | -221 | -972 |
| Taxable income from property management | 120 | 246 | 889 |
| Current tax on the above | 28 | -52 | -186 |
| Income from property management after deduction of current tax |
485 | 415 | 1,675 |
| Average number of shares, thousands | 307,427 | 307,427 | 307,427 |
| EPRA EPS, SEK | 1.58 | 1.35 | 5.45 |
| Operating cash flow per share | |||
| Operating cash flow | 396 | 483 | 1,942 |
| Average number of shares, thousands | 307,427 | 307,427 | 307,427 |
| Operating cash flow per share, SEK | 1.29 | 1.57 | 6.32 |
| EPRA NDV per share | |||
| Equity | 23,642 | 22,769 | 23,380 |
| Number of shares at year end, thousands | 307,427 | 307,427 | 307,427 |
| EPRA NDV per share, SEK | 76.90 | 74.06 | 76.05 |
| EPRA NRV per share | |||
| Equity | 23,642 | 22,769 | 23,380 |
| Deferred tax liability | 5,266 | 4,819 | 5,180 |
| Derivatives | -599 | -374 | -695 |
| Total | 28,309 | 27,214 | 27,865 |
| Average number of shares, thousands | 307,427 | 307,427 | 307,427 |
| EPRA NRV per share, SEK | 92.08 | 88.52 | 90.64 |
| 2023-03-31 | 2022-03-31 | 2022-12-31 |
|---|---|---|
| - | - | 3.10 |
| - | - | 78.5 |
| - | - | 3.9 |
| - | - | 102.70 |
| - | - | 78.50 |
| - | - | -24.20 |
| - | - | 3.00 |
| - | - | -20.6 |
| 79.35 | 98.65 | 78.50 |
| 0.83 | 2.65 | 7.44 |
| 3.32 | 10.62 | 7.44 |
| 23.9 | 9.3 | 10.5 |
| 78.50 | ||
| 1.58 | 1.35 | 5.45 |
| 6.30 | 5.40 | 5.45 |
| 12.6 | 18.3 | 14.4 |
| 79.35 | 98.65 |
CEO´s comments Market comments Income, expenses and profit Assets Sustainable business Liabilities and equity Financial reports Key figures ey Definitions Calendar Contact
CEO´s comments Market comments Income, expenses and profit Assets Sustainable business Liabilities and equity Financial reports Key figures Definitions efinitionsCalendar Contact
Some of the financial metrics that Wihlborgs presents in the interim report are not defined in accordance with IFRS. Wihlborgs is of the opinion that these metrics provide valuable complementary information to investors and the company's management, since they enable evaluation of the company's performance.
As all companies do not apply the same approach to calculating these financial metrics, they are not always comparable to metrics used by other companies. Accordingly, these metrics should not be viewed as replacements for metrics defined under IFRS. On this page, definitions of metrics are presented that, with a few exceptions, are not defined in accordance with IFRS.
The key ratios are based on the statements of income, financial position, changes in equity and cash flow. Some of the historic data is compiled from the historical summary on page 21 in Wihlborgs' Interim Report.
Profit for the period as a percentage of average equity, excluding non-controlling interests. Average equity refers to the average of the opening and closing values for the respective period. In interim reports, the return is converted to its annualised value without taking account of seasonal variations. The ratio comprises a measure of the profitability in relation to shareholders' equity.
Earnings before interest expense, derivatives and taxes (EBIT) as a percentage of average capital employed. Capital employed is defined as total assets less non-interest-bearing liabilities and provisions. Average capital employed refers to the average of the opening and closing balances for each period. In interim reports, the return is converted to its annualised value without taking account of seasonal variations. The metric shows the return on the capital provided by shareholders and lenders without regard to interest.
Equity as a percentage of total assets at the end of the period. The ratio provides a measure of the financial strength of the company.
Income from property management, plus interest expense, divided by interest expense. The ratio measures the degree to which earnings can decline without jeopardising interest payments or, alternatively, how much interest expense can increase before income from property management becomes negative.
Borrowings as a percentage of the properties' carrying amounts. The ratio shows the degree of borrowing on the property portfolio.
The operating surplus, shown as a percentage of rental income. The ratio illustrates the proportion of rental income that remains after deducting property management costs.
Interest-bearing liabilitites relative to equity. Interest-bearing liabilities include borrowings, lease liabilities and any other interest-bearing liabilities.The ratio illustrates the relationship between borrowings and equity and, thereby, the gearing and financial strength.
The operating surplus shown as a percentage of the properties' average carrying amount. The average carrying amount refers to the average of the opening and closing values for the respective period. In interim reports, the yield is converted to its annualised value without taking account of seasonal variations. The ratio illustrates the yield on the property portfolio without taking account of its financing costs.
Borrowings minus liquid assets in the financial statements, measured at five measurement occasions (quarterly) in the last twelve months, divided by operating surplus minus central administration, rolling twelve months. The key figure shows the company's earning capacity relative to borrowings, net.
Earnings per share for the period Earnings for the period divided by the average number of shares outstanding. Earnings per share are the same before and after dilution. Definition according to IFRS.
Earnings per share before tax divided by the average number of shares outstanding.
Income from property management less the estimated tax payable on taxable income from property management divided by the average number of shares outstanding. Taxable income from property management is defined as income from property management less fiscal depreciation/amortisation and direct deductions. The effect of loss carryforwards is not taken into consideration.
Cash flows from operating activities divided by the average number of shares outstanding.
The closing balances for equity divided by the number of shares at the end of the period.
The closing balances for equity following the reversal of interest-rate derivatives and deferred tax according to the balance sheet, divided by the number of shares at the end of the period.
Proposed dividend as a percentage of the year-end share price.
Share price performance plus actual dividend relative to the share price at the start of the year.
Market price per share divided by earnings per share. In interim reports, the ratio is converted to its annualised value without taking account of seasonal variations.
Market price per share divided by EPRA RPS per share. In interim reports, the ratio is converted to its annualised value without taking account of seasonal variations.
Time remaining until the interest on all interest bearing debts in average has been adjusted.
Time remaining until an average of all interest bearing debts has been refinanced.
These key figures are based on the property table on page 10. The table shows the estimated rental value, rental income and property expenses on an annualised basis with an unchanged property portfolio, based on the contract stock on the first day after the end of the period.
Rental income plus estimated market-level rents for unlet space.
Operating surplus as a percentage of the carrying amount for the properties at the end of the period.
Rental income per m2 Rental income on an annualised basis divided by lettable area.
Operating surplus per m2 Operating surplus divided by lettable area.
Economic occupancy rate Rental income as a percentage of rental value.
Estimated surplus ratio Operating surplus as a percentage of rental income.
Net Lettings New lettings during the period less terminations to vacate.
Excludes properties that both current and comparative period are classified as projects/land, aquired or sold.
*) These key figures are operational and are not regarded as alternative key ratios according to ESMA's guidelines.
CEO´s comments Market comments Income, expenses and profit Assets Sustainable business Liabilities and equity Financial reports Key figures Definitions Calendar Contact
| Interim report Jan-June 202310 July 2023 | |
|---|---|
| Interim report Jan-Sept 202321 October 2023 | |
| Year-end report 202313 February 2024 |
Wihlborgs' interim reports and the Annual Report are distributed electronically. The Annual Report is printed in Swedish and sent to any shareholders notifying the Company that they wish to receive it in printed form.
| Wihlborgs Annual and Sustainability Report 202231 mars 2023 | |
|---|---|
| Notice of the Annual General Meeting in Wihlborgs Fastigheter AB (publ)21 mars 2023 | |
| The Nomination Committee's proposal regarding the Board of Directors (publ)2 mars 2023 | |
| Wihlborgs builds facility for Rollco in Helsingborg2 mars 2023 | |
| 2022 Year-end report: Growth in core operations 14 februari 2023 |
|
| Wihlborgs signs lease with BTJ at Ideon in Lund13 februari 2023 | |
| Wihlborgs' 2022 year-end report will be presented on 14 February 20237 februari 2023 | |
| Springhill to lease 6,400 m2 at Wihlborgs' new logistics facility in Helsingborg |
24 januari 2023 |
| Genetor expands with Wihlborgs at Helsingborg Central Station | 18 januari 2023 |
This interim report is information of such a kind that Wihlborgs Fastigheter AB (publ) is legally required to disclose pursuant to the EU's Market Abuse Regulation and the Swedish Securities Market Act. The information was submitted for publication through the agency of the contact people at the next side on 25 April at 07.30 CEST.
Being able to adapt to developments in society to remain relevant has always been our strength. Wihlborgs is growing and developing every day, especially during these challenging times. This is all so we can be the customer-centric, long-term and region-building company that we are.
Ulrika Hallengren, CEO +46 (0)40-690 57 95, [email protected]
Arvid Liepe, CFO +46 (0)40-690 57 31, [email protected]
Wihlborgs Fastigheter AB Box 97, 201 20 Malmö Visits: Stora Varvsgatan 11A Phone: 040-690 57 00
Wihlborgs Fastigheter AB Terminalgatan 1 252 78 Helsingborg Phone: 042-490 46 00
Wihlborgs Fastigheter AB Ideon Science Park Scheelevägen 17 223 70 Lund Phone: 046-590 62 00
Wihlborgs A/S Mileparken 22A DK-2740 Skovlunde, Danmark Phone: +45 396 161 57
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