Quarterly Report • May 11, 2022
Quarterly Report
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AB Sagax is a property company whose business concept is to invest in commercial properties, primarily in the warehouse and light industrial segment
Profit from property management for 2022, meaning profit before revaluations and tax, based on the current property portfolio, announced acquisitions and divestments and current exchange rates, is expected to amount to SEK 3,200 M. The forecast was presented in the 2021 Year-end Report.
| Selected key performance indicators1) | |||||||
|---|---|---|---|---|---|---|---|
| 2022 Jan-Mar |
2021 Jan-Mar |
2021 Jan-Dec |
2020 Jan-Dec |
2019 Jan-Dec |
2018 Jan-Dec |
2017 Jan-Dec |
|
| Profit from property management per Class A and B share after dilution, SEK | 2.27 | 1.80 | 7.99 | 6.62 | 5.51 | 4.31 | 3.70 |
| Change compared with preceding year, % | 26 | 14 | 21 | 20 | 28 | 16 | 24 |
| Earnings per Class A and B share after dilution, SEK | 4.77 | 6.59 | 30.04 | 10.78 | 12.13 | 9.24 | 8.85 |
| Dividend per Class A and B share, SEK (2021 proposed) | – | – | 2.15 | 1.65 | 1.30 | 1.00 | 0.90 |
| Net debt/EBITDA, multiple | 6.9 | 6.8 | 5.8 | 6.4 | 6.6 | 7.4 | 8.1 |
| Interest coverage ratio, multiple | 7.3 | 5.4 | 6.5 | 5.7 | 4.9 | 4.2 | 3.7 |
| Debt ratio, % | 42 | 43 | 42 | 43 | 44 | 47 | 50 |
| Properties' market value, SEK M | 48,403 | 40,410 | 46,067 | 37,548 | 32,625 | 29,024 | 23,771 |
| Property yield, % | 5.8 | 6.0 | 6.0 | 6.3 | 6.4 | 6.8 | 6.9 |
1) Definitions of key performance indicators are provided on pages 30–31.
The Veluwezoom 22 property in the Netherlands was acquired in the first quarter. The property is located 25 km from Amsterdam and encompasses 5,100 square metres of lettable area. The property is fully let.
AB Sagax is a property company whose business concept is to invest in commercial properties, primarily in the warehouse and light industrial segment.
The overriding objective is the long-term generation of the maximum possible risk-adjusted return to the company's owners. To achieve this objective, Sagax has set the following business targets:
The table and charts below illustrate the outcome for the past five years in relation to the financial targets.
Sagax invests primarily in warehouse and industrial properties. Properties designed as warehouses and for light industries are attractive invest-
| Financial targets | ||||||
|---|---|---|---|---|---|---|
| Outcome rolling 12 months |
Five-year average |
|||||
| Return on equity, measured over a five-year period, should not fall below 15% per year |
32% | 26% | ||||
| Profit from property management per Class A and B share should increase by a minimum of |
||||||
| 15% on an annual basis | 22% | 21% |
ment opportunities, since they generate a high yield combined with a low rate of new production and stable occupancy rates. Sagax invests in add-on acquisitions and in existing properties. Property acquisitions and investments in the existing portfolio aim to increase cash flow and diversify rental revenue, thereby reducing the company's operational and financial risks.
Sagax's financial structure is designed with a clear focus on operating cash flow and interest coverage ratio. This is expected to create both excellent prerequisites for expansion and an attractive return on equity.
The company has three classes of shares: Class A, B and D common shares. The Class D shares attract investor categories that value steady ongoing dividends.
Sagax pursues efficiency and sustainability in its management strategy. The management strategy includes clearly prioritising reputable customers with high credit ratings and obtaining long leases. This is regarded as being advantageous since it reduces the risk of vacancies, while leading to lower costs for letting premises and adapting premises to tenant needs. The company mainly enters into triple net leases and is thus only affected to a limited extent by changes in consumption or changed rates for such utilities as heating, water and sewage.
Return on equity
The aim of Sagax's sustainability activities is to avoid short-term gains arising at the expense of negative longer-term consequences, such as in the form of externalities. The company's investing activities, management and funding are conducted to achieve the best possible long-term – meaning sustainable – outcome. The planning, governance and monitoring of sustainability activities follow Sagax's organisational structure with well-defined delegation of responsibilities and authorities. Sustainability activities are based on applicable legislation and internal policies.
Sagax regards the precautionary approach of the Swedish Environmental Code and laws and regulations as minimum requirements. Sagax follows the Global Compact's ten principles on human rights, labour, environment and anti-corruption. Sagax also works to promote the UN Sustainable Development Goals (SDGs) and has selected seven of the 17 SDGs that the company has the most opportunity to contribute to. Sustainability activities are reported in accordance with the guidelines for sustainability reporting developed by the Global Reporting Initiative (GRI).
Sagax's sustainability strategy is based on four focus areas: Environmental and resource efficiency, business ethics, financial sustainability and professional and dedicated employees.
Sagax strives to reduce its impact on the climate by reducing the company's energy consumption and carbon emissions. Sagax obtains sustainability ratings for new buildings that are constructed and is working to have existing buildings sustainability rated. Property management is focusing on: energy savings, installing renewable energy (mainly solar panels), purchases of green energy and changing to renewable district heating. Green leases are signed for new lettings.
Sagax works actively to combat all forms of corruption and has a whistle-blower function that is administered by an external party and available on the Group's website. A Code of Conduct for Suppliers ensures that working conditions at the companies that deliver products and services fulfil Sagax's requirements in terms of health and safety and ethical standards as well as that the assignments are conducted in an environmentally responsible manner
Sagax's business model is characterised in all areas by a long-term approach. Short-term gains are subordinate to the company's long-term value creation. Sagax invests primarily in regions experiencing stable population growth and that have diversified business activities. The company seeks out reputable and creditworthy tenants. The company's policy is to abstain from maximising rent levels at all points of time in favour of signing leases of a longer duration with solvent tenants.
Sagax's performance is dependent on skilled employees and attaches great value to offering favourable employment conditions. In addition to offering competitive employment conditions, the company has, for a number of years, also offered all employees the opportunity to participate in an incentive plan. The purpose is to increase employee involvement in the development of the company. Employees are expected to assume responsibility for their work duties and serve as good representatives of the company's values and culture. Combating discrimination and victimisation is important for being an attractive employer that attracts skilled personnel.
Additional information on Sagax's sustainability activities is available in the sustainability report in Sagax's 2021 Annual Report.
The profit/loss and cash flow items below refer to the January to March 2022 period. The comparative items refer to the year-earlier period. Amounts for the balance-sheet items and comparative figures refer to the position at the end of the current period and end of the year-earlier period.
Profit from property management rose 23% to SEK 786 M (637), of which joint ventures and associated companies accounted for SEK 187 M (161). The increase in profit from property management was attributable to property acquisitions and higher profit from property management in joint ventures and associated companies. Profit from property management per Class A and B share after dilution rose 26% to SEK 2.27 (1.80).
Changes in the value of properties increased profit by SEK 865 M (1,381).
Revaluation of financial instruments had an impact on profit of SEK –233 M (226), of which SEK 138 M (41) from joint ventures. The revaluation of listed shares resulted in an unrealised change in value of SEK –544 M (116). The revaluation of financial instruments attributable to joint ventures amounted to SEK 85 M (52) pursuant to IFRS 9, while fixed income derivatives accounted for SEK 83 M (76) and other financial instruments for SEK 5 M (–17).
Profit after tax for the period was SEK 1,581 M (2,157).
Rental revenue rose 21% to SEK 885 M (731). Revenue was primarily positively affected by property acquisitions. Revenue was also positively impacted by SEK 18 M compared with the year-earlier period due to the EUR strengthening against the SEK.
During the period, rental revenue in comparable portfolios increased 4.8% (0.9) excluding currency effects. The market segments with the largest increases were Spain with 9.9% and Finland with 6.5%. Rental revenue for other market segments increased 3.0% in comparable portfolios excluding currency effects.
Other revenue amounted to SEK 6 M (14).
The economic occupancy rate amounted to 96% (95). During the period, the vacancy value rose SEK 43 M (27) due to tenants vacating premises and declined SEK 52 M (27) due to new lettings. Fixed-term rent discounts for new tenants increased SEK 8 M (4) to SEK 45 M (31) on an annual basis at the end of the period. Acquisitions and property divestments during the period impacted the vacancy value by SEK 4 M (0). In total, the vacancy value increased SEK 4 M (decrease: 2) to SEK 139 M (157) at the end of the period.
Economic occupancy rate
Rental revenue, comparable portfolios
At the end of the period, notice of termination had been served for leases with a rental value of SEK 120 M (111), of which leases with notice of vacating the premises accounted for SEK 119 M (110) and leases with notice of renegotiation for SEK 1 M (1). Of the leases for which notice had been received, vacancies corresponding to a rental value of SEK 50 M will occur in 2022. Lettings of premises that have not yet been occupied reduced the adjusted vacancy value by SEK 29 M (34).
Operating and maintenance costs amounted to a total of SEK 116 M (92). Expenses for property tax increased to SEK 44 M (36). Other property expenses rose to SEK 20 M (15). The increase was primarily due to property acquisitions and price increases for electricity and heating.
Central administration costs amounted to SEK 35 M (30), corresponding to 4.0% (4.0) of the period's rental revenue.
At the end of the period, Sagax had 89 (84) employees. Functions such as property caretaking and on-call operations are outsourced. Sagax has offices in Stockholm, Helsinki, Rotterdam, Paris and Barcelona.
| Country | Total |
|---|---|
| Sweden | 36 |
| Finland | 30 |
| France | 10 |
| Netherlands | 7 |
| Spain | 6 |
| Total | 89 |
| Vacancy changes | ||
|---|---|---|
| 2022 | 2021 | |
| Amounts in SEK M | Jan-Mar | Jan-Dec |
| Opening vacancy for each year | 135 | 159 |
| Vacancies | 43 | 134 |
| New lettings | –52 | –159 |
| Change in discounts provided | 8 | 2 |
| Vacancy value, acquired properties | 4 | 11 |
| Vacancy value, sold properties | – | –14 |
| Change in exchange rates | 1 | 2 |
| Closing vacancy value | 139 | 135 |
| Terminated for renegotiation | 1 | 2 |
| Terminated lease, not vacated | 119 | 105 |
| Letting, not occupied | –29 | –34 |
| Adjusted closing vacancy value | 229 | 207 |
| Leases terminated for vacancy | ||
|---|---|---|
| No. of | Rental value, | |
| Year of vacancy | leases | SEK M |
| 2022 | 63 | 50 |
| 2023 | 19 | 52 |
| 2024 | 2 | 5 |
| 2025 | 4 | 4 |
| 2026 | – | – |
| >2026 | 1 | 8 |
| Total | 89 | 119 |
| Segment | Rental value, SEK M |
Vacancy value, SEK M1) |
Economic vacancy rate1) |
Lettable area, sqm |
Vacant area, sqm |
Vacancy rate by area |
|---|---|---|---|---|---|---|
| Sweden | 897 | 51 | 6% | 900,000 | 20,000 | 2% |
| Finland | 1,377 | 43 | 3% | 1,341,000 | 50,000 | 4% |
| France | 496 | 11 | 2% | 493,000 | 11,000 | 2% |
| Netherlands | 443 | 21 | 5% | 589,000 | 22,000 | 4% |
| Spain | 291 | 10 | 3% | 441,000 | 33,000 | 7% |
| Germany | 94 | 2 | 2% | 77,000 | 5,000 | 6% |
| Rest of Europe | 10 | – | 0% | 6,000 | – | – |
| Total | 3,608 | 139 | 4% | 3,847,000 | 141,000 | 4% |
1) The vacancy value and economic vacancy rate take into account both vacancies and discounts provided.
Profit from joint ventures and associated companies for the period amounted to SEK 687 M (470), of which profit from property management accounted for SEK 187 M (161), changes in the value of fixed income derivatives for SEK 138 M (41) and changes in the value of properties for SEK 541 M (402). Profit was charged with tax of SEK 179 M (135).
Interest-bearing liabilities increased to SEK 27,948 M (21,701).
Financial expenses amounted to SEK 117 M (107). The average interest rate was 1.5% (1.6) on 31 March 2022 due to refinancing and new borrowing at lower interest rates.
Financial income of SEK 39 M (11) pertained to dividends primarily from holdings in Nyfosa and interest on bonds and other financial investments.
Sagax obtains external valuations to determine the properties' market value. The valuations are carried out by independent valuation companies and updated on a quarterly basis, except for five German properties that are only valued externally at year end. As of 31 March, 99% of the properties had been valued by authorised property appraisers. For other properties, the market value was determined as the acquisition price or internal valuations were applied. The value growth for the properties amounted to SEK 865 M (1,381), of which unrealised changes in value amounted to SEK 870 M (1,378).
| Amounts in SEK M | Jan-Mar 2022 |
|---|---|
| New lettings/Renegotiations | 71 |
| Vacancies/Renegotiations | –31 |
| General change in market value | 830 |
| Total | 870 |
The change in the value of financial instruments amounted to SEK –233 M (226), of which SEK 138 M (41) referred to joint ventures.
The change in value attributable to fixed income derivatives amounted to SEK 221 M (76), of which SEK 138 M (41) referred to joint ventures.
Revaluation of listed shares resulted in an unrealised change in value of SEK –544 M (116).
The revaluation of financial instruments attributable to joint ventures amounted to SEK 85 M (52) in accordance with IFRS 9.
Sagax recognised a current tax expense of SEK 20 M (33). The deferred tax expense amounted to SEK 179 M (321). The Group's deferred tax liabilities at the end of the period amounted to SEK 3,279 M (2,827).
Cash flow from operating activities before changes in working capital amounted to SEK 670 M (414). Changes in working capital had a positive impact of SEK –195 M (–384) on cash flow. Investing activities had an impact of SEK –1,442 M (–1,497) on cash flow, while cash flow from financing activities amounted to SEK 1,289 M (1,459). In total, cash and cash equivalents rose SEK 318 M (–8) during the period.
The Parent Company, AB Sagax, is responsible for stock market issues, such as financial reporting and stock market information. Services between Group companies are charged on commercial terms and conditions and in accordance with market-based pricing. Intra-Group services comprise management services and internal interest charging. The Parent Company's management fees from Group companies amounted to SEK 20 M (15).
Profit from property management for 2022, meaning profit before revaluations and tax, based on the current property portfolio, announced acquisitions and divestments and current exchange rates, is expected to amount to SEK 3,200 M. The forecast was presented in the 2021 Yearend Report.
Current earnings capacity is reported in conjunction with interim reports and year-end reports.
The table below shows the earnings capacity on a 12-month basis on 1 April 2022. It is important to note that this capacity cannot be compared with a forecast for the forthcoming 12 months because it does not contain assessments about, for example, future vacancies, the interest rate scenario, currency effects, rent trends or changes in value.
The rental value is based on contractual rental revenue on an annual basis, with supplements for estimated market rents for vacant prem-
| Rental value | 3,608 | 3,459 |
|---|---|---|
| Vacancy | –139 | –135 |
| Rental revenue | 3,469 | 3,324 |
| Property expenses | –610 | –563 |
| Net operating income | 2,859 | 2,761 |
| Central administration | –153 | –147 |
| Joint ventures and associated companies | 813 | 780 |
| Net financial items | –399 | –354 |
| Lease expenses | –28 | –28 |
| Profit from property management | 3,091 | 3,012 |
| Tax | –556 | –542 |
| Profit after tax | 2,535 | 2,470 |
| – of which, holders of Class D shares | 252 | 252 |
| – of which, holders of Class A and B shares | 2,282 | 2,218 |
| Run rate yield, % | 5.8 | 5.9 |
| Net debt/run rate EBITDA, multiple | 6.5 | 5.4 |
ises. Property expenses are based on actual outcomes over the past 12 months adjusted for the holding period. Central administration costs are based on actual outcomes over the past 12 months. Net financial items are calculated based on interest-bearing liabilities and assets on the balance sheet date. Expenses for interest-bearing liabilities are based on the Group's estimated average interest rate, plus financing costs allocated over time and costs attributable to credit facilities that were unutilised on the balance sheet date. Lease expenses essentially pertain to site leasehold fees that are based on actual outcomes over the past 12 months adjusted for the holding period. Dividends attributable to the company's holdings of listed shares were not taken into account in the earnings capacity. Tax is calculated at the standard tax rate of 18% (18).
Earnings capacity from joint ventures and associated companies is calculated in accordance with the same assumptions as for Sagax, taking into account the size of the participations.
Current earnings capacity before tax
On 31 March 2022, the property portfolio comprised 690 (681) properties with a lettable area of 3,847,000 square metres (3,544,000). At the end of the period, the rental value and contractual annual rent amounted to SEK 3,608 M (3,176) and SEK 3,469 M (3,019), respectively. This corresponds to an economic occupancy rate of 96% (95).
During the period, Sagax invested SEK 1,116 M (1,175), of which property acquisitions accounted for SEK 964 M (1,057).
Properties were acquired with a total lettable area of 84,000 square metres. The largest investment referred to 18,000 square metres of lettable area and 41,000 square metres of land in the France segment. A total of SEK 152 M (120) was invested in the existing property portfolio. SEK 8 M of the investments for the period were made against rent supplements, SEK 52 M was invested in conjunction with new lettings, SEK 54 M in conjunction with new production and SEK 37 M pertained to property maintenance. A total of SEK 11 M was invested in solar power facilities and other energy-saving investments.
The Group has agreed to acquire 81 properties for a corresponding SEK 1,285 M for which possession will be taken after the end of the period. The acquired properties encompass 112,000 square metres of lettable area. The occupancy rate is 89%, refer also to page 27 for additional information.
No properties were divested during the period.
The yield for the period in relation to market value amounted to 5.8% (6.0).
| Market value | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Segment | SEK M | Share | SEK per sqm |
No. of properties |
Lettable area, sqm |
Vacant area, sqm |
Rental value, SEK M |
Economic occupancy rate |
Contractual annual rent, SEK M |
| Sweden | 14,166 | 29% | 15,700 | 111 | 900,000 | 20,000 | 897 | 95% | 846 |
| Finland | 15,793 | 33% | 11,800 | 204 | 1,341,000 | 50,000 | 1,377 | 97% | 1,334 |
| France | 5,971 | 12% | 12,100 | 123 | 493,000 | 11,000 | 496 | 98% | 485 |
| Netherlands | 6,624 | 14% | 11,200 | 126 | 589,000 | 22,000 | 443 | 95% | 422 |
| Spain | 4,507 | 9% | 10,200 | 117 | 441,000 | 33,000 | 291 | 97% | 280 |
| Germany | 1,210 | 3% | 15,700 | 7 | 77,000 | 5,000 | 94 | 98% | 92 |
| Rest of Europe | 132 | 0% | 22,000 | 2 | 6,000 | – | 10 | 100% | 10 |
| Total | 48,403 | 100% | 12,600 | 690 | 3,847,000 | 141,000 | 3,608 | 96% | 3,469 |
| Amounts in SEK M | Property acquisitions |
Existing portfolio |
Total | Share of total investments |
Divestments | Net investments |
|---|---|---|---|---|---|---|
| Sweden | 22 | 52 | 74 | 7% | – | 74 |
| Finland | 175 | 67 | 241 | 22% | – | 241 |
| France | 369 | 7 | 376 | 34% | – | 376 |
| Netherlands | 200 | 9 | 209 | 19% | – | 209 |
| Spain | 145 | 18 | 163 | 15% | – | 163 |
| Germany | 52 | – | 52 | 5% | – | 52 |
| Rest of Europe | – | – | – | – % | – | – |
| Total | 964 | 152 | 1,116 | 100% | – | 1,116 |
Sagax has a diverse lease structure, which better allows the company to maintain an even occupancy rate. To reduce the risk of lower rental revenue, Sagax endeavours to create long-term relationships with the company's existing tenants and to achieve favourable diversification in terms of the length and size of its leases.
Sagax's annual rent at the end of the period was distributed between 2,130 leases (1,828). The table below presents the size of Sagax's leases in relation to the Group's annual rent at the end of the period. The table shows that 2,120 leases (1,817) each had a rental value of less than 1% of the Group's annual rent. The total rental value for these leases accounted for 83% (81) of Sagax's annual rent. In addition, Sagax is party to eight leases (nine) with a rental value corresponding to 1–2% of the Group's annual rent. Combined, these leases total 11% (13) of Sagax's annual rent. Two (two) of Sagax's leases had an annual rental value that
accounted for more than 2% of the Group's rental revenue. These leases together represented 6% (6) of the Group's contractual annual rent.
Sagax's tenants operate in a variety of sectors. 15% (17) of rental revenue comes from tenants with food-related operations, 15% (15) from companies in the manufacturing industry and 12% (11) in the automotive-related industry, including sales, service and manufacturing. Diverse tenant industries is considered to lower the risk of vacancies and rent losses. The main sectors are presented in the pie chart below.
According to Sagax's management strategy, the company strives to secure long-term leases and an even distribution of contract maturities over the years. This is deemed to reduce the risk of significant variations in the Group's occupancy rate. Leases representing 46% of the annual rent expire in or after 2026. 11-16% of annual rent expires every year between 2022 and 2025.
| <1% | 2,893 | 83 | 2,120 | 1 | 4 |
|---|---|---|---|---|---|
| >2% 1–2% |
203 373 |
6 11 |
2 8 |
101 47 |
9 6 |
| Share of contractual annual rent |
Annual rent SEK M |
Share, % | No. of leases |
Average annual rent, SEK M |
Lease term, years |
| Lease terms | |||
|---|---|---|---|
| Year of expiry | Area, sqm | SEK M | Share |
| 2022 | 371,000 | 380 | 11% |
| 2023 | 445,000 | 452 | 13% |
| 2024 | 449,000 | 461 | 13% |
| 2025 | 730,000 | 572 | 16% |
| 2026 | 298,000 | 272 | 8% |
| >2026 | 1,413,000 | 1,333 | 38% |
| Total | 3,706,000 | 3,469 | 100% |
Sagax prepares its consolidated financial statements in accordance with International Financial Reporting Standards (IFRS). The company has decided to measure its properties at fair value according to the Fair Value Method, pursuant to Level 3 of IFRS 13.
Sagax obtains external valuations to determine the properties' market value. The valuations are carried out by independent valuation companies and updated on a quarterly basis.
On 31 March 2022, the total market value of Sagax's 690 (681) properties was SEK 48,403 M (40,410). Exchange rate fluctuations during the period resulted in property values denominated in EUR and Danish crowns increasing by SEK 350 M (513).
The recognised unrealised change in value amounted to SEK 870 M (1,378) for the period.
The valuations were carried out in accordance with generally accepted international valuation methods. As of 31 March 2022, 99% of valuation objects were valued by authorised property appraisers from independent valuation companies.
The principal method of appraisal used was cash flow calculations in which the present value of net operating income, investments and residual values was calculated. The calculation period was adjusted to the remaining term of existing leases and varies between five and 20 years. As a rule, the calculation period is ten years. For more information, see Sagax's 2021 Annual Report, page 92.
The cost of capital for the present value calculation of cash flows (4.2–15.6%), the cost of capital for the present value calculation of residual values (4.5–15.6%) and the yield requirement for the residual value calculations (4.0–14.0%) are based on analyses of transactions carried out and on individual assessments of the risk level and market position of each property.
The weighted cost of capital for the present value calculation of cash flows and residual values for the property portfolio was 7.3% (7.3) and 7.4% (7.5), respectively. The weighted yield requirement was 6.2% (6.4) on 31 March 2022. By comparison, the yield reported by Sagax for the period was 5.8% (6.0). A comparison of the yield reported over time and the yield requirement used in valuations is provided below.
| Change in the carrying amounts of properties | |||||||
|---|---|---|---|---|---|---|---|
| SEK M | No. | ||||||
| Property portfolio, 31 December 2021 | 46,067 | 673 | |||||
| Acquisition of properties | 964 | 17 | |||||
| Investments in the current portfolio | 152 | ||||||
| Divestment of properties | – | – | |||||
| Currency translation effect | 350 | ||||||
| Unrealised changes in value | 870 | ||||||
| Property portfolio, 31 March 2022 | 48,403 | 690 |
Finland 38% (SEK 1,377 M) Sweden 25% (SEK 897 M) France 14% (SEK 496 Mkr)
Sagax's joint ventures and associated companies contributed a total of SEK 187 M (161) to profit from property management during the period. Sagax's share of changes in the value of properties amounted to SEK 541 M (402) and the share of changes in the value of derivatives was SEK 138 M (41) for the period. The total value of the commitment related to ownership of joint ventures and associated companies amounted to SEK 10,504 M (7,478).
Via Hemsö Intressenter AB, Sagax indirectly owns 15% of Hemsö Fastighets AB (Hemsö), with the remaining share owned by the Third Swedish National Pension Fund. Hemsö conducts operations in Sweden, Germany and Finland. Operations consist of owning, managing and developing public properties. 94% of rental revenue derives from taxfinanced operations. For more information, refer to the company's website, hemso.se.
Sagax owns 50% of Söderport Property Investment (Söderport), with the remaining share owned by Nyfosa AB. Söderport's operations consist of owning, managing and developing properties in Sweden. On behalf of Söderport, Sagax handles the financial administration and most of the property management.
A corresponding 75% of Söderport's rental value of SEK 947 M was located in Stockholm on 31 March 2022. Söderport's economic vacancies amounted to SEK 44 M (49) at the end of the period, corresponding to a vacancy rate of 5% (5). Of the economic vacancies, SEK 21 M (19) comprised fixed-term rent discounts provided for new lettings. At the end of the period, Stockholm accounted for 94% of the economic vacancies. Söderport also owns 78.1% of Torslanda Property Investment AB, which
is thus included as a subsidiary in Söderport's consolidated financial statements.
Sagax owns 50% of Fastighetsaktiebolaget Ess-Sierra (Ess-Sierra), with the remainder owned by NP3 Fastigheter AB. Ess-Sierra was founded in December 2020 and its operations entail owning and managing 39 properties that are let to Beijer Byggmaterial AB. The lettable area amounts to 184,000 square metres, of which 100% comprises warehouse premises/building materials retail. Most of the properties are situated in university and regional towns.
Sagax owns 21.8% of the votes and 15.3% of the capital in NP3 Fastigheter AB. NP3 Fastigheter AB is a property company focusing on commercial investment properties with high yields mainly in northern Sweden. The company's property portfolio encompassed 458 properties with a total property value of SEK 17.9 billion and a rental value of SEK 1,575 M on 31 March 2022. NP3 Fastigheter AB is listed on Nasdaq Stockholm, Large Cap. The market value of Sagax's properties amounted to SEK 3,972 M. The carrying amount on the balance sheet date amounted to SEK 1,996 M. For more information, refer to the company's website, np3fastigheter.se.
Sagax owns 25.9% of the votes and 25.1% of the capital in Fastighetsbolaget Emilshus AB. Emilshus acquires, develops and manages commercial properties in Småland and nearby growth regions. The company's property portfolio encompassed 102 properties with a total market value of SEK 5.1 billion on 31 March 2022. For more information, refer to the company's website, emilshus.com.
| Sagax's joint ventures | |||||||
|---|---|---|---|---|---|---|---|
| Hemsö | Söderport | Ess-Sierra | |||||
| Jan–Mar 2022 | Jan–Mar 2021 | Jan–Mar 2022 | Jan–Mar 2021 | Jan–Mar 2022 | Jan–Mar 2021 | ||
| Sagax's participating interest, % | 15 | 15 | 50 | 50 | 50 | 50 | |
| Rental revenue, SEK M | 983 | 857 | 220 | 213 | 23 | 23 | |
| Profit from property management, SEK M | 572 | 481 | 123 | 117 | 16 | 15 | |
| Profit for the period, SEK M | 1,934 | 935 | 579 | 394 | 46 | 19 | |
| Sagax share of profit comprehensive i ncome, SEK M Sagax's share of profit from property |
261 | 137 | 265 | 188 | 23 | 15 | |
| management, SEK M | 73 | 60 | 58 | 54 | 8 | 7 | |
| 31 March 2022 | 31 March 2021 | 31 March 2022 | 31 March 2021 | 31 March 2022 | 31 March 2021 | ||
| No. of properties | 448 | 408 | 84 | 82 | 39 | 37 | |
| Carrying amount of properties, SEK M | 79,987 | 65,528 | 13,850 | 12,311 | 1,553 | 1,449 | |
| Lettable area, sqm | 2,286,000 | 2,101,000 | 761,000 | 782,000 | 184,000 | 203,000 | |
| Lease term, years | 9.6 | 9.8 | 4.4 | 4.8 | 6.4 | 6.5 | |
| Economic vacancy rate, % | 2 | 2 | 5 | 5 | – | – | |
| Interest-bearing liabilities, SEK M | 44,375 | 41,626 | 6,606 | 6,330 | 872 | 843 | |
| Loan maturity, years | 6.6 | 6.9 | 2.2 | 3.2 | 2.7 | 3.7 | |
| Fixed interest, years | 5.8 | 6.6 | 2.1 | 2.9 | 1.9 | 2.2 | |
| Market value of derivatives, SEK M | 309 | –95 | 8 | –177 | – | – | |
| Carrying amount, SEK M | 4,922 | 3,395 | 2,754 | 2,097 | 314 | 280 |
Consolidated equity amounted to SEK 32,783 M (24,783) on 31 March 2022. During the period, equity increased due to comprehensive income of SEK 1,703 M.
Sagax's interest-bearing liabilities at the end of the period amounted to SEK 27,948 M (21,701). An amount corresponding to SEK 26,877 M (17,667) of liabilities was recognised in EUR.
Interest-bearing liabilities attributable to listed bonds amounted to SEK 26,528 M (18,340). The remaining interest-bearing debt comprised commercial paper of SEK 1,296 M (1,911) and liabilities to banks of SEK 124 M (1,451).
Unsecured liabilities corresponded to 100% (85) of interest-bearing liabilities.
The interest coverage ratio at the end of the period amounted to 727% (545) and the debt ratio to 43% (43). Net interest-bearing debt for the past 12 months was 6.9 (6.8) times EBITDA and 6.5 (6.6) times run rate EBITDA, see page 7 for more information.
A total of SEK 3,151 M (5,284) in loans was raised, of which SEK 3,117 M (3,993) in the form of bond loans under the framework of Sagax's EMTN programme. Repayments during the period totalled SEK 1,787 M (3,745). Exchange rate fluctuations increased interest-bearing liabilities by SEK 228 M (319).
Net interest-bearing debt amounted to SEK 18,422 M (18,398).
The average remaining fixed interest and loan maturity terms were 4.1 years (4.0) and 4.3 years (4.1), respectively, at the end of the period. The average interest rate on interest-bearing liabilities was 1.5% (1.6), including the effect of derivatives.
Sagax has SEK 26,028 M (16,593) in loans at fixed interest rates. The company has interest-rate caps and interest-rate swaps with a total nominal value of SEK 2,016 M (4,095), of which interest-rate swaps with an average interest rate of 1.3% (1.1) accounted for SEK 882 M (1,534). Fixed interest exceeds interest-bearing liabilities by SEK 1,392 M.
| Fixed interest | Loan maturity | Interest-rate swaps | |||||
|---|---|---|---|---|---|---|---|
| Year of expiry | SEK M | Interest rate | Share | SEK M | Share | SEK M | Interest rate |
| 2022 | 1,296 | 0.7% | 4% | 64 | 0% | – | – |
| 2023 | 1,414 | 0.6% | 5% | 749 | 3% | 253 | 0.5% |
| 2024 | 5,382 | 2.0% | 18% | 6,456 | 23% | – | – |
| 2025 | 4,156 | 2.1% | 14% | 4,216 | 15% | – | – |
| 2026 | 3,083 | 1.8% | 11% | 3,083 | 11% | – | – |
| >2026 | 14,008 | 1.0% | 48% | 13,379 | 48% | 629 | 1.7% |
| Total/average | 29,340 | 1.4%1) | 100% | 27,948 | 100% | 882 | 1.3% |
1) Based on fixed interest amount.
| Amounts in SEK M | 31 Mar 2022 | 31 Mar 2021 |
|---|---|---|
| Interest-bearing liabilities | 27,948 | 21,701 |
| Interest-bearing assets | –687 | –540 |
| Listed shares | –8,436 | –2,746 |
| Cash and cash equivalents | –402 | –17 |
| Net debt | 18,422 | 18,398 |
for commercial paper programmes amounted to SEK 7,578 M (5,031). No additional collateral needs to be pledged to utilise these credit facilities.
Sagax's working capital amounted to SEK 3,148 M (–2,352) on 31 March. At the same date, unutilised credit facilities including back-up facilities
| Listed bonds, 31 March 2022 | ||||||
|---|---|---|---|---|---|---|
| Maturity | Nominal amount, SEK M |
Liability, SEK M |
Effective interest | Interest terms | Maturity date | ISIN code |
| 2019-2023 | 500 | 500 | 0.98% | Stibor 3M+0.90% | 16 Jun 2023 | XS2093119175 |
| 2019-20231) | 250 | 250 | 1.18% | 1.13% | 16 Jun 2023 | XS2093119845 |
| Total/average | 750 | 749 | 1.05% | |||
| Maturity | Nominal amount, EUR M |
Liabilities, EUR M |
Effective interest | Coupon rate | Maturity date | ISIN code |
| 2018-20241) | 500 | 499 | 2.10% | 2.00% | 17 Jan 2024 | XS1877540465 |
| 2019-20251) | 400 | 402 | 2.05% | 2.25% | 13 Mar 2025 | XS1962543820 |
| 2022-20261) | 300 | 298 | 1.78% | 1.62% | 24 Feb 2026 | XS2447539060 |
| 2020-20271) | 300 | 298 | 1.26% | 1.12% | 30 Jan 2027 | XS2112816934 |
| 2021-20281) | 500 | 496 | 0.88% | 0.75% | 26 Jan 2028 | XS2291340433 |
| 2021-20291) | 500 | 500 | 1.01% | 1.00% | 17 May 2029 | XS2342227837 |
| Total/average | 2,500 | 2,493 | 1.49% | |||
| 1) Fixed-rate loans. | ||||||
| Derivative contracts, 31 March 2022 | ||||||
| Amounts in SEK M | Nominal amount |
Years to maturity |
Market value 31 Mar 2022 |
Market value 31 Dec 2021 |
Change for the period |
|
| Nominal interest-rate swaps | 882 | 5.0 | 4 | –74 | 78 | |
| Interest-rate caps | 1,133 | 1.4 | 3 | 0 | 3 | |
| Currency futures | – | – | – | 2 | –2 |
| Financial covenant in EMTN programme |
31 Mar 2022 | 31 Mar 2021 | 31 Dec 2021 | |
|---|---|---|---|---|
| Rating according to Moody's Investor Services | Baa3, Positive outlook | Baa3, Stable outlook | Baa3, Positive outlook | |
| Net debt/Total assets | <65% | 29% | 37% | 27% |
| Interest coverage ratio | >1.8x | 11.1x | 7.6x | 9.4x |
| Secured liabilities/total assets | <45% | 0% | 0% | 0% |
Total 2,016 3.0 8 –72 80
Sources of financing
Unsecured liabilities and commercial paper 100% (SEK 27,861 M) Secured liabilitier, 0% (SEK 87 M)
Sagax values signed leases and site leaseholds in accordance with IFRS 16 and recognises the right-of-use asset as an asset with a corresponding liability. Sagax's leases and site leaseholds at the end of the period amounted to SEK 379 M (402).
Interest-bearing non-current receivables amounted to SEK 687 M (540) and comprised convertible debentures issued by the French company Groupe BMG valued at SEK 531 M (496) maturing on 31 December 2024, a bond issued by Fastighetsbolaget Emilshus AB valued at SEK 44 M (44) expiring on 9 December 2022 and promissory notes valued at SEK 112 M (–) issued in connection with the sale of property in 2021.
Sagax owns shares in Nyfosa AB, Cibus Nordic Real Estate AB, Mälaråsen AB and KMC Properties ASA. Listed shares are recognised at the closing price on the balance sheet date and amounted to SEK 4,465 M (1,292). The shares in Nyfosa AB were recognised at SEK 3,634 M (1,253), the shares in Cibus Nordic Real Estate AB at SEK 698 M (–), the shares in Mälaråsen AB at SEK 73 M (39) and the shares in KMC Properties ASA at SEK 60 M (–).
| Amounts in SEK M Jan-Mar Jan-Mar Jan-Dec Rental revenue 885 731 3,100 Other revenue 6 14 23 Operating expenses –98 –73 –250 |
months 3,254 15 –275 –73 |
|---|---|
| Maintenance costs –18 –19 –74 |
|
| Property tax –44 –36 –153 |
–160 |
| Other property expenses –20 –15 –73 |
–78 |
| Net operating income 712 602 2,573 |
2,682 |
| Central administration –35 –30 –147 |
–153 |
| Profit from joint ventures and associated companies 687 470 2,718 |
2,935 |
| – of which, profit from property management 187 161 713 |
739 |
| – of which, changes in value 679 444 2,572 |
2,807 |
| – of which, tax –179 –135 –558 |
–602 |
| – of which, other – – –9 |
–9 |
| Financial income 39 11 113 |
142 |
| Financial expenses –110 –100 –419 |
–428 |
| Financial expense, interest component of leases –7 –7 –28 |
–28 |
| Profit including changes in value of joint ventures and associated companies 1,286 947 4,809 |
5,150 |
| – of which, profit from property management 786 637 2,805 |
2,953 |
| Properties, realised –6 3 6 |
–2 |
| Properties, unrealised 870 1,378 3,870 |
3,362 |
| Financial instruments, realised – 0 –10 |
–10 |
| Financial instruments, unrealised –371 185 1,868 |
1,313 |
| Profit before tax 1,780 2,512 10,543 |
9,811 |
| Deferred tax –179 –321 –624 |
–481 |
| Current tax –20 –33 –112 |
–99 |
| Profit for the period 1,581 2,157 9,807 |
9,230 |
| Other comprehensive income – items that may be reversed to profit or loss: |
|
| Translation differences for foreign operations 219 327 282 |
174 |
| Share of other comprehensive income for joint ventures 8 9 8 |
7 |
| Translation differences, hedge accounting –110 –159 –141 |
–93 |
| Tax on items that may be reversed 6 –4 6 |
20 |
| Comprehensive income for the period 1,704 2,331 9,963 |
9,338 |
| Earnings per Class A and B share, SEK 4.78 6.60 30.09 |
28.27 |
| Earnings per Class A and B share after dilution, SEK 4.77 6.59 30.04 |
28.23 |
| Earnings per Class D share, SEK 0.50 0.50 2.00 |
2.00 |
| Average no. of Class A and B shares, millions 317.7 317.3 317.5 |
317.8 |
| Average no. of Class A and B shares after dilution, millions 318.1 318.0 318.0 |
318.2 |
| Average number of Class D shares, millions 126.3 125.9 126.2 |
126.3 |
| Amounts in SEK M | 2022 31 Mar |
2021 31 Mar |
2021 31 Dec |
|---|---|---|---|
| Investment properties | 48,403 | 40,327 | 46,067 |
| Investment properties for sale | – | 83 | – |
| Leases, right-of-use assets | 347 | 370 | 355 |
| Joint ventures and associated companies | 10,504 | 7,478 | 9,818 |
| Derivatives | 9 | – | – |
| Interest-bearing non-current receivables | 687 | 540 | 676 |
| Other fixed assets | 151 | 144 | 103 |
| Total fixed assets | 60,101 | 48,943 | 57,020 |
| Listed shares | 4,465 | 1,292 | 4,772 |
| Other current assets | 796 | 634 | 596 |
| Cash and bank balances | 402 | 17 | 84 |
| Total current assets | 5,663 | 1,942 | 5,452 |
| Total assets | 65,764 | 50,885 | 62,472 |
| Equity | 32,783 | 24,783 | 31,079 |
| Non-current interest-bearing liabilities | 26,588 | 18,352 | 23,368 |
| Deferred tax liabilities | 3,279 | 2,827 | 3,087 |
| Derivatives | 1 | 76 | 74 |
| Lease liability, right-of-use assets | 379 | 401 | 390 |
| Other non-current liabilities | 217 | 152 | 195 |
| Total non-current liabilities | 30,464 | 21,809 | 27,114 |
| Commercial paper | 1,296 | 1,911 | 2,891 |
| Other current interest-bearing liabilities | 64 | 1,438 | 95 |
| Other current liabilities | 1,155 | 945 | 1,293 |
| Total current liabilities | 2,515 | 4,294 | 4,279 |
| Total equity and liabilities | 65,764 | 50,885 | 62,472 |
| 2022 | 2021 | 2021 | Rolling 12 | |
|---|---|---|---|---|
| Amounts in SEK M | Jan-Mar | Jan-Mar | Jan-Dec | months |
| Profit before tax | 1,780 | 2,512 | 10,543 | 9,811 |
| Changes in value of financial instruments | 371 | –185 | –1,858 | –1,303 |
| Change in value of properties | –865 | –1,381 | –3,876 | –3,359 |
| Profit from joint ventures and associated companies | –687 | –470 | –2,718 | –2,935 |
| Dividend from joint ventures and associated companies | 135 | – | 373 | 507 |
| Dissolution of allocated borrowing costs | 11 | 10 | 41 | 42 |
| Other items not included in cash flow | –16 | –6 | –13 | –23 |
| Tax paid | –59 | –66 | –146 | –139 |
| Cash flow from operating activities before | ||||
| changes in working capital | 670 | 414 | 2,346 | 2,602 |
| Cash flow from changes in current receivables | –30 | –107 | –71 | 6 |
| Cash flow from changes in current liabilities | –165 | –278 | 103 | 216 |
| Cash flow from operating activities | 472 | 30 | 2,379 | 2,824 |
| Acquisition of properties | –964 | –1,046 | –4,824 | –4,742 |
| Property sales | –6 | 208 | 867 | 653 |
| Investments in existing properties | –152 | –119 | –658 | –692 |
| Acquisition of listed shares | –237 | –437 | –1,949 | –1,748 |
| Acquisition of financial instruments | – | –7 | –7 | – |
| Acquisition of joint ventures and associated companies | – | –92 | –214 | –122 |
| Capital contribution and new share issue to joint ventures and associated companies | –40 | –21 | –271 | –290 |
| Dividend to joint ventures and associated companies | –24 | – | – | –24 |
| Increase in other fixed assets | –20 | – | –16 | –35 |
| Decrease in other fixed assets | – | 19 | 50 | 32 |
| Cash flow from investing activities | –1,442 | –1,497 | –7,023 | –6,969 |
| Issue of Class D and B shares | – | – | 36 | 36 |
| Redemption of preference shares | – | – | –572 | –572 |
| Dividend paid to shareholders | –63 | –71 | –792 | –784 |
| Incentive plan | – | – | –24 | –24 |
| Borrowings | 3,151 | 5,284 | 13,997 | 11,864 |
| Repayment of loans | –1,787 | –3,745 | –7,880 | –5,922 |
| Redemption of financial instruments | – | –8 | –21 | –13 |
| Decrease in other non-current liabilities | –11 | – | –52 | –63 |
| Increase in other non-current liabilities | – | – | 11 | 11 |
| Cash flow from financing activities | 1,289 | 1,459 | 4,703 | 4,533 |
| Cash flow for the period | 320 | –8 | 59 | 387 |
| Exchange rate differences in cash and cash equivalents | –2 | – | – | –2 |
| Change in cash and cash equivalents | 318 | –8 | 59 | 385 |
| Cash and cash equivalents at beginning of period | 84 | 24 | 24 | 17 |
| Cash and cash equivalents at end of period | 402 | 17 | 84 | 402 |
| Amounts in SEK M | Share capital | Other contributed capital |
Reserves, translation differences |
Profit earned incl. net profit for the period |
Total equity1) |
|---|---|---|---|---|---|
| Equity, 31 December 2020 | 808 | 3,542 | 338 | 17,765 | 22,452 |
| Profit for the period, January-March 2021 | – | – | – | 2,157 | 2,157 |
| Other comprehensive income, January-March 2021 | – | – | 173 | – | 173 |
| Profit for the period | – | – | 173 | 2,157 | 2,330 |
| Equity, 31 March 2021 | 808 | 3,542 | 511 | 19,922 | 24,783 |
| Profit for the period, April-December 2021 | – | – | – | 7,650 | 7,650 |
| Other comprehensive income, April-December 2021 | – | – | –18 | – | –18 |
| Profit for the period | – | – | –18 | 7,650 | 7,632 |
| Transactions with shareholders | |||||
| Issue of Class B shares, incentive plan | 1 | 36 | – | – | 36 |
| Redemption of preference shares | –29 | – | – | –543 | –571 |
| Transaction costs | – | – | – | –1 | –1 |
| Dividends | – | – | – | –776 | –776 |
| Transactions with shareholders | –28 | 36 | – | –1,320 | –1,312 |
| Other transactions | |||||
| Redemption of incentive plan | – | – | – | –31 | –31 |
| Incentive plan | – | – | – | 7 | 7 |
| Other transactions | – | – | – | –24 | –24 |
| Equity 31 December 2021 | 780 | 3,578 | 493 | 26,228 | 31,079 |
| Profit for the period, January-March 2022 | – | – | – | 1,581 | 1,581 |
| Other comprehensive income, January-March 2022 | – | – | 122 | – | 122 |
| Comprehensive income for the period | – | – | 122 | 1,581 | 1,703 |
| Equity, 31 March 2022 | 780 | 3,578 | 615 | 27,809 | 32,783 |
1) Equity is attributable in its entirety to the Parent Company's shareholders.
| 2022 | 2021 | 2021 | |
|---|---|---|---|
| Amounts in SEK M | Jan-Mar | Jan-Mar | Jan-Dec |
| Net sales | 26 | 20 | 88 |
| Administration costs | –30 | –23 | –107 |
| Loss before financial income and expenses | –4 | –2 | –19 |
| Profit from participations in Group companies | – | – | 1,154 |
| Profit from participations in joint ventures | – | 1 | 96 |
| Financial income | 79 | 335 | 745 |
| Financial expenses | –181 | –325 | –751 |
| Profit before tax and appropriations | –106 | 9 | 1,224 |
| Appropriations | – | – | 106 |
| Tax | – | 0 | –2 |
| Profit for the period | –106 | 9 | 1,328 |
| Total equity, untaxed reserves and liabilities | 35,622 | 26,727 | 34,220 |
|---|---|---|---|
| Total current liabilities | 4,321 | 4,744 | 6,152 |
| Other current liabilities | 180 | 251 | 284 |
| Liabilities to Group companies | 2,845 | 2,582 | 2,885 |
| Current interest-bearing liabilities | 1,296 | 1,911 | 2,983 |
| Total non-current liabilities | 27,163 | 17,717 | 23,825 |
| Deferred tax liabilities | 4 | 4 | 4 |
| Liabilities to Group companies | 18,107 | 7,480 | 14,829 |
| Non-current interest-bearing liabilities | 9,052 | 10,233 | 8,992 |
| Untaxed reserves | 30 | 30 | 30 |
| Equity | 4,107 | 4,236 | 4,213 |
| Total assets | 35,622 | 26,727 | 34,220 |
| Total current assets | 20,817 | 18,252 | 19,416 |
| Other current assets | 77 | 136 | 77 |
| Receivables from Group companies | 20,591 | 18,116 | 19,308 |
| Cash and bank balances | 149 | 0 | 31 |
| Total fixed assets | 14,804 | 8,474 | 14,805 |
| Other financial fixed assets | 13,066 | 7,143 | 13,080 |
| Receivables from Group companies | 1,737 | 1,330 | 1,725 |
| Tangible fixed assets | 1 | 1 | – |
| Amounts in SEK M | 31 Mar | 31 Mar | 31 Dec |
| 2022 | 2021 | 2021 |
| Profit items | Changes in value, properties | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| per segment | Rental revenue1) | Net operating income | Unrealised | Realised | Total yield | |||||
| Amounts in SEK M | 2022 Jan-Mar |
2021 Jan-Mar |
2022 Jan-Mar |
2021 Jan-Mar |
2022 Jan-Mar |
2021 Jan-Mar |
2022 Jan-Mar |
2021 Jan-Mar |
2022 Jan-Mar |
2021 Jan-Mar |
| Sweden | 213 | 201 | 174 | 173 | 336 | 299 | – | 5 | 510 | 477 |
| Finland | 341 | 285 | 264 | 222 | 37 | 824 | –6 | –2 | 295 | 1,045 |
| France | 126 | 89 | 101 | 72 | 164 | 124 | – | – | 265 | 196 |
| Netherlands | 108 | 83 | 94 | 76 | 260 | 127 | – | 0 | 355 | 203 |
| Spain | 72 | 49 | 65 | 43 | 89 | 26 | – | – | 154 | 69 |
| Germany | 22 | 21 | 21 | 20 | –15 | –21 | – | – | 6 | –1 |
| Rest of Europe | 3 | 2 | 2 | 2 | –1 | –1 | – | – | 1 | 2 |
| Non-specified | – | – | –10 | –8 | – | – | – | – | –10 | –8 |
| Total | 885 | 731 | 712 | 602 | 870 | 1,378 | –6 | 3 | 1,577 | 1,983 |
| Asset items per segment |
Market value properties |
Investments properties |
Acquisition properties |
Divestment properties |
||||
|---|---|---|---|---|---|---|---|---|
| Amounts in SEK M | 2022 31 Mar |
2021 31 Mar |
2022 31 Mar |
2021 31 Mar |
2022 31 Mar |
2021 31 Mar |
2022 31 Mar |
2021 31 Mar |
| Sweden | 14,166 | 12,670 | 52 | 47 | 22 | 89 | – | –203 |
| Finland | 15,793 | 14,428 | 67 | 56 | 175 | 814 | – | –2 |
| France | 5,971 | 4,364 | 7 | 8 | 369 | 96 | – | – |
| Netherlands | 6,624 | 4,540 | 9 | 7 | 200 | 58 | – | – |
| Spain | 4,507 | 3,202 | 18 | 2 | 145 | – | – | – |
| Germany | 1,210 | 1,110 | – | – | 52 | – | – | – |
| Rest of Europe | 132 | 97 | – | 0 | – | – | – | – |
| Total | 48,403 | 40,410 | 152 | 120 | 965 | 1,057 | – | –205 |
1) All rental revenue pertains to external tenants.
| Jan-Mar Jan-Mar Jan-Dec Jan-Dec 2019 Jan-Dec Jan-Dec Property-related key figures Property yield, % 5.8 6.0 6.0 6.3 6.4 6.8 6.9 Surplus ratio, % 82 83 83 83 83 83 83 Occupancy rate by area, % 96 95 96 95 95 95 95 Economic occupancy rate, % 96 95 96 95 95 95 94 Lettable area at the end of the period, 000 sqm 3,847 3,544 3,759 3,480 3,022 2,850 2,489 No. of properties at the end of the period 690 681 673 673 553 512 495 Financial key figures Return on total capital, % 6 6 6 7 7 7 7 Return on equity, % 20 37 37 18 24 24 30 Average interest rate, % 1.5 1.6 1.4 1.8 1.9 2.2 3.0 Fixed interest period incl. derivatives, years 4.1 4.0 4.0 3.4 3.5 3.0 2.1 Loan maturity, years 4.3 4.1 4.3 3.4 3.8 3.6 3.1 Equity/assets ratio, % 50 49 50 48 48 46 42 Debt ratio, % 42 43 42 43 44 47 50 Net debt/run rate EBITDA, multiple 6.5 6.6 5.4 6.4 6.6 7.1 7.7 Net debt/EBITDA, multiple 6.9 6.8 5.8 6.4 6.6 7.4 8.1 Interest coverage ratio, multiple 7.3 5.4 6.5 5.7 4.9 4.2 3.7 Interest coverage ratio, EMTN programme, multiple 11.1 7.6 9.4 6.4 5.3 4.3 4.0 Data per Class A and B share 287.00 188.80 305.00 169.60 136.20 65.70 49.10 Price of Class B share at the end of the period, SEK Net asset value, SEK 103.30 74.49 97.92 66.38 56.77 44.22 35.04 Equity, SEK 89.29 62.38 83.93 55.19 46.86 35.70 27.15 Equity after dilution, SEK 89.14 62.23 83.84 55.09 46.78 35.67 27.13 Earnings, SEK 4.78 6.60 30.09 10.80 12.15 9.24 8.86 Earnings after dilution, SEK 4.77 6.59 30.04 10.78 12.13 9.24 8.85 Profit from property management, SEK 2.27 1.81 8.01 6.63 5.51 4.31 3.71 Profit from property management after dilution, SEK 2.27 1.80 7.99 6.62 5.51 4.31 3.70 Cash flow, SEK 1.91 1.11 6.59 6.10 4.86 3.95 3.27 Cash flow after dilution, SEK 1.91 1.10 6.58 6.09 4.86 3.95 3.26 Dividend per share, SEK (proposed for 2021) – – 2.15 1.65 1.30 1.00 0.90 No. at end of period, millions 317.7 317.3 317.7 317.3 317.1 316.8 316.5 No. at end of period after dilution, millions 318.2 318.0 318.0 317.9 317.5 317.1 316.7 Average no., millions 317.7 317.3 317.5 317.1 316.9 316.7 316.5 Average no. after dilution, millions 318.1 318.0 318.0 317.7 317.3 316.9 317.0 Data per Class D share Share price at the end of period, SEK 32.30 32.35 33.40 32.05 36.35 31.70 29.92 |
2022 | 2021 | 2021 | 2020 | Jan-Dec | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|
| Equity, SEK | 35.00 | 35.00 | 35.00 | 35.00 | 35.00 | 35.00 | 35.00 | |
| Earnings, SEK 0.50 0.50 2.00 2.00 2.00 2.00 2.00 |
||||||||
| Dividend per share, SEK (proposed for 2021) – – 2.00 2.00 2.00 2.00 2.00 |
||||||||
| No. at end of period, millions 126.3 126.3 126.3 125.8 107.8 101.9 63.6 |
||||||||
| Average no., millions 126.3 125.9 126.2 118.4 105.7 83.0 43.1 |
1) Definitions of key performance indicators are provided on pages 30–31
At the end of the period, Sagax had 23,072 (20,616) shareholders. Sagax's market capitalisation amounted to SEK 95,298 M (64,324).
A total of 445,914,924 shares were outstanding at the end of the period, of which 2,000,000 were Class B treasury shares. Sagax has three classes of shares: Class A, B and D common shares. The shares are listed on Nasdaq Stockholm, Large Cap.
According to the Articles of Association, each Class D share is entitled to five times the total dividend on Class A and B shares, although not more than SEK 2.00 per share annually.
Sagax has three warrant plans for the company's employees. In total, Sagax's employees hold warrants corresponding to 0.5% of the number of Class A and B shares outstanding. The company's CEO and Board Members do not participate in the plans. These plans are valid for three years, and encompass the periods 2019-2022, 2020-2023 and 2021- 2024. The subscription price corresponds to the price paid for the Class B share at the start of the warrant plan, converted using the average
share price trend for the listed property companies in accordance with Carnegie's Real Estate Index (CREX) during the corresponding period. Accordingly, the warrants will have a value on condition that the price performance of the Sagax share exceeds the average for the listed property companies during each three-year period.
Profit from property management per Class B share after dilution on a rolling 12-month basis amounted to SEK 8.49 (6.85), which, compared with the share price of the Class B share at the end of the period, corresponded to a multiple of 33.8 (27.6).
Equity per Class A and B share after dilution amounted to SEK 89.14 (62.36). Net asset value per Class A and B share amounted to SEK 103.30 (74.61). The share price for the Class B share at the end of the period was 322% (303) of equity per Class B share and 278% (253) of NAV per Class B share.
| Price paid, SEK | Turnover rate on an annual basis, % |
Average trading volume per trading day, SEK M |
||||
|---|---|---|---|---|---|---|
| 31 Mar 2022 | 31 Mar 2021 | 31 Mar 2022 | 31 Mar 2021 | 31 Mar 2022 | 31 Mar 2021 | |
| Class A shares | 289.00 | 188.80 | 2 | 3 | 0.6 | 0.5 |
| Class B shares | 287.00 | 188.00 | 33 | 54 | 101.2 | 116.6 |
| Class D shares | 32.30 | 32.35 | 69 | 43 | 10.9 | 6.9 |
| 2022 31 Mar |
2021 31 Mar |
2021 31 Dec |
2020 31 Dec |
2019 31 Dec |
2018 31 Dec |
2017 31 Dec |
|
|---|---|---|---|---|---|---|---|
| Share price at the end of period, SEK | 287.00 | 188.80 | 305.00 | 169.60 | 136.20 | 64.70 | 49.10 |
| Profit from property management after dilution, SEK1) | 8.49 | 6.85 | 7.99 | 6.62 | 5.51 | 4.30 | 3.70 |
| Cash flow after dilution, SEK1)2) | 7.39 | 6.08 | 6.58 | 6.09 | 4.86 | 3.94 | 3.26 |
| Equity after dilution, SEK | 89.14 | 62.36 | 83.84 | 55.11 | 46.78 | 35.67 | 27.13 |
| Net asset value, SEK | 103.30 | 74.61 | 97.92 | 66.38 | 56.77 | 44.22 | 35.04 |
| Share price/Profit from property management, multiple1) | 33.8 | 27.6 | 38.2 | 25.6 | 24.7 | 15.0 | 13.3 |
| Share price/Cash flow, multiple1)2) | 38.8 | 31.0 | 46.4 | 27.9 | 28.0 | 16.4 | 15.1 |
| Share price/Equity, % | 322 | 303 | 364 | 308 | 292 | 182 | 181 |
| Share price/Net asset value, % | 278 | 253 | 311 | 255 | 240 | 147 | 140 |
1) Profit from property management and cash flow pertains to rolling 12 months.
2) Cash flow pertains to cash flow from operating activities before changes in working capital.
| Share of | ||||||
|---|---|---|---|---|---|---|
| No. of shareholders | Shareholder category | No. | power | Shareholders by country | No. | voting power |
| 16,604 | Private individuals | 94% | ||||
| 1,863 | residing in Sweden | 20,921 | 8% | 0% | ||
| 1,384 | Private individuals | |||||
| 1,378 | 1% | |||||
| 659 | Companies/institutions | Switzerland | 27 | 0% | ||
| 784 | Ireland | 30 | 0% | |||
| 400 | abroad | 1,327 | 16% | Other | 1,270 | 4% |
| 23,072 | Total | 23,072 | 100% | Total | 23,072 | 100% |
| residing abroad in Sweden Companies/institutions |
124 700 |
Share of voting 0% 76% |
Sweden USA UK |
21,621 54 70 |
| No. of shares | Percentage of | ||||
|---|---|---|---|---|---|
| Class A shares | Class B shares | Class D shares | Share capital | Votes2) | |
| David Mindus and companies | 10,848,800 | 66,917,112 | 1,192,228 | 17.7% | 25.8% |
| Staffan Salén and companies | 4,264,928 | 32,970,660 | 95,600 | 8.4% | 11.0% |
| Rutger Arnhult and companies | 5,797,053 | 6,342,938 | 17,385,738 | 6.6% | 11.9% |
| Fourth Swedish National Pension Fund | 5,716 | 15,516,151 | 9,298,645 | 5.6% | 3.6% |
| Third Swedish National Pension Fund | – | 24,227,658 | – | 5.4% | 3.5% |
| SEB Fonder | – | 12,404,410 | – | 2.8% | 1.8% |
| Avanza Pension | 49,961 | 713,436 | 11,209,085 | 2.7% | 1.8% |
| Vanguard | – | 6,129,194 | 3,818,399 | 2.2% | 1.5% |
| Länsförsäkringar Fonder | – | 7,612,153 | – | 1.7% | 1.1% |
| BlackRock | – | 6,651,337 | 7,827 | 1.5% | 1.0% |
| Swedbank Robur Fonder | 500,000 | 5,976,362 | – | 1.5% | 1.6% |
| Filip Engelbert and companies | 241,000 | 1,869,784 | 4,200,000 | 1.4% | 1.2% |
| Norges Bank | – | 3,844,102 | 2,339,842 | 1.4% | 0.9% |
| Handelsbanken Fonder | – | 5,060,880 | 539,358 | 1.3% | 0.8% |
| Erik Selin and companies | 1,081,866 | 2,193,945 | 1,446,868 | 1.1% | 2.1% |
| ODIN Fonder | – | 4,123,090 | – | 0.9% | 0.6% |
| Didner & Gerge Fonder | – | 3,322,095 | – | 0.7% | 0.5% |
| Johan Thorell and companies | 203,254 | 2,332,540 | 354,164 | 0.6% | 0.7% |
| Folksam | – | 2,690,847 | – | 0.6% | 0.4% |
| Björn Garat | 121,530 | 1,824,578 | 329,099 | 0.5% | 0.5% |
| Total 20 largest shareholders | 23,114,108 | 212,723,272 | 52,216,853 | 64.6% | 72.4% |
| Other shareholders | 3,718,746 | 78,097,469 | 74,044,476 | 35.0% | 27.6% |
| Sub-total | 26,832,854 | 290,820,741 | 126,261,329 | 99.6% | 100.0% |
| Shares held by AB Sagax | – | 2,000,000 | – | 0.4% | 0.0% |
| Total | 26,832,854 | 292,820,741 | 126,261,329 | 100.0% | 100.0% |
| – of which, Board and employees | 16,000,274 | 112,456,393 | 2,450,092 | 29.4% | 40.1% |
1) The ownership structure on 31 March 2022 is based on information from Euroclear Sweden and Modular Finance. 2) Voting rights for treasury shares held by AB Sagax have been excluded.
Voting rights and proportion of share capital Class of share No. Voting rights per share Number of votes Proportion of votes Proportion of share capital Class A shares 26,832,854 1.0 26,832,854.00 39% 6% Class B shares 292,820,741 0.1 29,282,074.10 43% 66% Class D shares 126,261,329 0.1 12,626,132.90 18% 28% Total 445,914,924 68,741,061.00 100% 100%
To prepare the accounts based on generally accepted accounting policies, company management must make judgements and assumptions that affect asset and liability items, revenue and expense items recognised in the accounts and other information provided. The actual outcome may differ from these judgements. Sagax is also exposed to various risks that may be of significance to the company's future business, earnings and financial position.
The valuation of investment properties can be significantly affected by the judgments and assumptions made by company management. To reduce the risk of incorrect valuations, Sagax has engaged authorised external valuation companies to assess the market value of the majority of the properties as of 31 March 2022. When valuing properties, the constant existence of uncertainties regarding the assumptions made must be taken into account.
Sagax prioritises leasing to tenants with a high credit rating and long-term leases, despite these entailing slightly lower immediate earnings. The intention is to reduce the risk of rent losses and the risk of vacancies.
The geographic distribution of Sagax's property portfolio and the industries of its tenants are highly diversified. Sagax's lease structure of many small leases help reduce the risks of vacancies and rent losses.
Sagax's financial expenses comprise the single largest expense for the Group. To reduce Sagax's exposure to rising interest rates, the Group has a significant number of its interest expenses from fixed-rate loans. To limit interest-rate risk for loans at floating interest rates, interest-rate swaps and interest-rate caps are used. Sagax's funding primarily com-
| Sensitivity analysis for property values | |||||||
|---|---|---|---|---|---|---|---|
| –20% | –10% | 0% | +10% | +20% | |||
| Value change, SEK M | –9,681 | –4,840 | 0 | 4,840 | 9,681 | ||
| Debt ratio, % | 50 | 46 | 42 | 39 | 37 |
| Sensitivity analysis for property values | |||||
|---|---|---|---|---|---|
| Change | Value change, SEK M | ||||
| Yield requirement | +/– 0.25% points | –1,496/+1,620 | |||
| Cost of capital | +/– 0.25% points | –1,022/+1,042 | |||
| Rental revenue | +/–5% | +2,047/–2,164 | |||
| Property expenses | +/–5% | –309/+295 |
prises equity and interest-bearing liabilities. Sagax endeavours to secure a long, average remaining term of interest-bearing liabilities in a bid to limit its refinancing risk, defined as the risk that refinancing existing debt cannot take place on reasonable terms. The company's long-term funding comprises listed bonds and bank loans. The complete terms and conditions for the bond loans are available at www.sagax.se.
The amounts in the consolidated balance sheet are partly exposed to exchange rate fluctuations, particularly for the EUR. Net exposure on 31 March 2022, assets less liabilities in EUR, amounted to SEK 6,173 M (8,014). In preparing the consolidated financial statements, the balance sheets of the Group's foreign operations are translated from their functional currencies into SEK based on the exchange rates applying on the balance sheet date: EUR 1 was equivalent to SEK 10.34 and DKK 1 was equivalent to SEK 1.39. Revenue and expense items are translated at the average exchange rate for the period: EUR 1 was equivalent to SEK 10.42 and DKK 1 was equivalent to SEK 1.40. In accordance with IAS 21, the currency effects for foreign operations and hedge accounting are recognised in Other comprehensive income. Other currency effects are recognised in profit or loss.
Uncertainty regarding the macroeconomic climate has increased as a result of Russia's invasion of Ukraine. Sagax does not conduct any operations in Ukraine or in Russia. Accordingly, Sagax is indirectly impacted by the war and its consequences. The company is monitoring developments to identify and, if possible, address any risks.
Sagax's other risks are described in the 2021 Annual Report, on pages 45-48.
| Sensitivity analysis for changes in the occupancy rate | ||||||
|---|---|---|---|---|---|---|
| –10% | –5% | 0% | +5% | +10% | ||
| Occupancy rate, % | 87 | 91 | 96 | N/A | N/A | |
| Interest coverage ratio, % | 652 | 690 | 728 | N/A | N/A |
Sagax's exposure to material risks in the company's operations is presented below.
| Sensitivity analysis on 31 March 20221) | ||||||
|---|---|---|---|---|---|---|
| Amounts in SEK M | Change | Effect on profit from property management, annual basis |
Effect on profit after tax, annual basis |
Effect on equity |
||
| Economic occupancy rate | +/–1% point | +/–36 | +/–29 | +/–29 | ||
| Rental revenue | +/–1% | +/–35 | +/–28 | +/–28 | ||
| Property expenses | +/–1% | –/+6 | –/+5 | –/+5 | ||
| Interest expenses for liabilities in SEK including fixed income derivatives | +/–1% point | –1/+1 | –1/+1 | –1/+1 | ||
| Interest expenses for liabilities in EUR including fixed income derivatives | +/–1% point | –7/+8 | –5/+6 | –5/+6 | ||
| Change in SEK/EUR exchange rate2) | +/– 10% | +/–170 | +/–136 | +/–617 | ||
| Changed rent level for contract maturity in 2022 | +/– 10% | +/–49 | +/–40 | +/–40 |
1) Excluding shares in profit of joint ventures and associated companies.
2) Sagax's net exposure to the SEK/EUR exchange rate comprises assets and liabilities recognised in EUR, in addition to revenue and expenses in EUR.
This condensed interim report has been prepared in accordance with International Accounting Standards (IAS) 34 Interim Financial Reporting. The term "IFRS" in this report means application of the International Financial Reporting Standards (IFRS), as adopted by the EU, and the interpretations of the International Financial Reporting Interpretations Committee (IFRIC). The accounting policies and calculation methods are the same as those applied in the 2021 Annual Report and are to be read together with this Annual Report.
Sagax's segment division was changed as of 1 January 2022. The former segments that belonged to the same country have been merged into one segment. This means that properties that previously belonged to the Rest of Europe segment are now included in the segments for their respective countries. The former market segments Stockholm and Rest of Sweden are now included in the Sweden segment. Helsinki, University cities in Finland and Rest of Finland belong to the Finland segment. The former Paris segment and the properties situated in the rest of France and that were previously reported in the Rest of Europe segment have formed the France segment. Madrid & Barcelona and the properties situated in the rest of Spain and that were previously reported in the Rest of Europe segment have formed the Spain segment. The German properties that were previously included in the Rest of Europe segment are now included in the Germany market segment. The Netherlands segment is unchanged compared with prior periods and the Danish properties are reported as previously in the Rest of Europe segment. Comparative figures have been restated according to the new segment division.
There are no amendments to IFRS in 2022 that are deemed to have any material impact on the company's financial statements.
Rounding-off differences may occur.
On 27 April, it was announced in a press release that Sagax had acquired 80 properties for a corresponding SEK 1,285 M based on 13 separate transactions. The properties comprise a lettable area of 111,500 square metres, primarily comprising premises for warehouses and industrial purposes. The annual rent corresponds to SEK 74 M and the surplus ratio is deemed to be 87%. 100% of all rental revenue is adjusted by the Consumer Price Index or similar index. The occupancy rate is 89% and the remaining average lease term is 3.0 years. The market rent is assessed at SEK 98 M including the letting of eight vacant properties with a vacancy value of SEK 9 M.Of these acquisitions, property corresponding to SEK 600 M has been taken into possession. Possession of the remaining SEK 685 M is expected to be taken in the second quarter of 2022. The acquisitions will be recognised in the following Sagax segments: France (SEK 962 M), Finland (SEK 179 M), Sweden (SEK 71 M), Spain (SEK 63 M) and the Netherlands (SEK 10 M).
The Board of Directors and CEO give their assurance that this interim report provides a fair overview of the company's and the Group's operations, financial position and earnings and describes significant risks and uncertainties faced by the company and the companies included in the Group.
Stockholm, 11 May 2022 AB SAGAX (publ) Corporate Registration Number 556520-0028
Chairman of the Board Board member Board member
Staffan Salén Johan Cederlund Filip Engelbert
David Mindus Johan Thorell Ulrika Werdelin CEO and Board member Board member Board member
This interim report has not been reviewed by the company's auditors.
This constitutes information that AB Sagax (publ) is legally obliged to publish under the EU's Market Abuse Regulation. The information was released for publication on 11 May 2022 at 1:30 p.m. (CEST).
Interim Report January-June 2022 14 July 2022 Interim Report January-September 2022 27 October 2022
| ■ Final day for trading including dividend rights | 28 June 2022 |
|---|---|
| --------------------------------------------------- | -------------- |
| ■ Final day for trading including dividend rights | 28 September 2022 | |
|---|---|---|
■ Final day for trading including dividend rights 29 March 2023
■ First day for trading excluding dividend rights 30 March 2023
1) Payment is made on the third banking day following the record date for Swedish issuers. Sagax is unable to affect this date. 2) Date proposed by the Board.
David Mindus, CEO +46 8 545 83 540, [email protected]
Agneta Segerhammar, CFO +46 8 545 83 540, [email protected]
Visit us at www.sagax.se.
Sagax applies the European Securities and Market Authority's (ESMA) Guidelines on the Alternative Performance Measures. Alternative performance measures refer to financial measures of historical or future earnings trends, financial position, financial results or cash flows that are not defined or stated in the applicable rules for financial reporting, which in Sagax's case is IFRS. The basis of the alternative performance measures provided is that they are used by company management to assess the financial performance and thus are considered to provide valuable information to shareholders and other stakeholders.
The table below presents definitions of Sagax's key performance indicators. The calculation of alternative performance measures is described separately on the following pages.
| Key performance indicators | Description | Reason for alternative performance measure |
|---|---|---|
| Cash flow per Class A and B share |
Profit before tax adjusted for items not included in cash flow less tax paid in relation to the average number of Class A and B shares. Dividends on Class D shares and preference shares for the period have also been deducted from profit before tax. Dividends received from joint ventures and associated companies have been added to profit before tax. |
The KPI shows the amount of cash flow for the period that can be considered to be attributable to owners of Class A and Class B shares. |
| Dilution | Dilution due to outstanding warrants has been calculated, in line with IAS 33, as the number of Class A and B shares to be issued to cover the difference between the strike price and market price for all potential Class A and B shares (warrants) outstanding, insofar as it is probable that they will be utilised. |
Not an APM. |
| Debt ratio | Interest-bearing liabilities at the end of the period in relation to total assets at the end of the period. |
The KPI shows financial risk. |
| EBITDA | Net operating income less central administration costs plus dividends received from joint ventures and associated companies. |
Sagax uses EBITDA so that the EBITDA/Net debt KPI shows financial risk. |
| Earnings per Class A and B share |
Profit in relation to the average number of Class A and B shares after taking into account the portion of profit for the period represented by dividends on Class D shares and preference shares. |
IFRS performance measure. |
| Earnings per Class D share | Class D shares are entitled to five times the total dividend on Class A and B shares, although not more than SEK 2.00 per share annually. |
The KPI shows the shareholders' share of profit. |
| Equity/assets ratio | Equity in relation to total assets. | The KPI shows financial risk. |
| Equity per Class A and B share | Equity at the end of the period in relation to the number of Class A and B shares at the end of the period after taking into account equity attributable to Class D shares and preference shares. |
The KPI shows the owner's share of equity. |
| Equity per Class D share | Equity at the end of the period in relation to the number of common shares at the end of the period after taking into account equity attributable to preference shares. Equity is restricted to SEK 35.00 per Class D share. |
The KPI shows the owner's share of equity. |
| Economic occupancy rate | Contractual annual rent directly after the end of the period as a percentage of rental value directly after the end of the period. |
The KPI shows the economic degree of utilisation of the Group's properties. |
| EURIBOR | EURIBOR, or the Euro Interbank Offered Rate, is a daily reference rate based on the average of the interest rates at which euro interbank term deposits are being offered by one prime bank to another within the EMU zone. |
Not an APM. |
| Fixed income derivatives | Agreements on lending rates that may include the factors of time, inflation and/or maximum interest rates. Usually signed to hedge interest rates for interest-bearing loans. |
Not an APM. |
| IFRS | International Financial Reporting Standards (IFRS), to be applied for consolidated financial statements by companies whose securities are listed on a regulated market. |
Not an APM. |
| Interest coverage ratio | Profit from property management, excluding profit from joint ventures and associated companies but including dividends from joint ventures, after reversal of financial expenses in relation to financial expenses. |
The KPI shows financial risk. |
| Interest coverage ratio, EMTN programme |
Profit from property management after reversal of financial income and expenses as a percentage of net financial items. |
The KPI shows financial risk. |
| Interest-rate swaps | An agreement between two parties to swap interest rate conditions on loans in the same currency. The swap entails that one party exchanges its floating interest rate for a fixed rate, while the other party receives a fixed rate in exchange for a floating rate. The purpose of an interest-rate swap is to reduce interest-rate risk. |
Not an APM. |
| Joint ventures | Partnership form whereby several owners have a shared controlling influence. |
Not an APM. |
| Key performance indicators | Description | Reason for alternative performance measure |
|---|---|---|
| Net asset value | Recognised equity according to the balance sheet with reversal of reserves for fixed income derivatives, deferred tax on temporary differences on property values and deferred tax on reserves for fixed income derivatives. |
An established indicator of the Group's net asset value that facilitates analyses and comparisons with EPRA NAV. |
| Net debt | Interest-bearing liabilities less interest-bearing assets, cash and cash equivalents, and listed shares. |
The KPI shows the Group's indebtedness. |
| Net debt/Total assets | Interest-bearing liabilities less interest-bearing assets, cash and cash equivalents, and listed shares as a percentage of total assets. |
The KPI shows financial risk. |
| Net debt according to EMTN programme |
Interest-bearing liabilities less listed securities and cash and cash equivalents. |
The KPI shows the Group's indebtedness. |
| Net debt according to EMTN programme/Total assets |
Interest-bearing liabilities less listed securities and cash and cash equivalents in relation to total assets. |
The KPI shows financial risk. |
| Net investments | The net of property acquisitions and investments in the current property portfolio, as well as sales of properties. |
The KPI shows the investment volume. |
| Occupancy rate by area | Contracted area directly after the end of the period as a percentage of total lettable area directly after the end of the period. |
The KPI shows the occupancy situation. |
| Profit from property manage ment |
Profit excluding changes in value and tax. | An indicator of the earnings generation in the oper ations, excluding changes in value. |
| Profit from property manage ment per Class A and B share after dilution |
Profit from property management for the period reduced by dividends on Class D shares and preference shares, divided by the average number of Class A and B shares after dilution. |
An indicator of the earnings generation of the assets, excluding the changes in value accruing to holders of Class A and B shares. |
| Property yield | Net operating income for the period (including property administration) with add-back of site leasehold fees, recalculated to 12 months, adjusted for the holding periods of the properties during the period as a percentage of the carrying amounts of the properties at the end of the period. |
The KPI shows the earnings generation of the operations before financial expenses and central administration costs are taken into account. |
| Property | Pertains to properties held under title or site leasehold. | Not an APM. |
| Secured liabilities/total assets | Liabilities secured with pledged assets as a percentage of total assets. | The KPI shows financial risk for bond holders. |
| STIBOR | STIBOR, or Stockholm Interbank Offered Rate, a daily reference rate based on the average of the interest rates at which banks offer to lend unsecured funds to other banks in SEK in the Swedish wholesale money market. |
Not an APM. |
| Surplus ratio | Net operating income for the period as a percentage of rental revenue for the period. |
The key performance indicator shows the profitabili ty of the properties. |
| Total return on shares | Total of the change in the share price during the period and the dividend paid during the period as a percentage of the share price at the end of the preceding year. |
The KPI shows the total return that accrues to shareholders. |
| Total yield on property | Total of yield and property revaluations during the period as a percentage of the closing property value adjusted for revaluations for the period. |
The KPI shows earnings generation and value growth for the properties for a period. |
| Triple net lease | A type of lease whereby the tenant pays, in addition to the rent, all costs incurred on the property that would normally have been paid by the property owner. These include operating expenses, maintenance, property tax, site leasehold fees, insurance, property caretaking, etc. |
Not an APM. |
| Rental revenue, comparable portfolios |
Rental revenue from properties that were included in the portfolio for the entire reporting period and the entire comparative period. Project properties and properties that were acquired or sold are not included. |
The KPI shows the trend in rental revenue excluding non-recurring effects, such as prematurely vacating premises, not impacted by acquired and sold properties. |
| Rental value | The contractual annual rent applicable directly after the end of the period, with supplements for estimated market rents for vacant premises. |
The key performance indicator shows the Group's income potential. |
| Return on equity | Profit for the period, recalculated to 12 months, as a percentage of aver age equity (opening and closing balances) divided by 2 for the period. |
The KPI shows how shareholders' capital yields interest during the period. |
| Return on total capital | Profit for the period, recalculated to 12 months, after net financial items after reversal of financial expenses as a percentage of average total assets for the period. |
The KPI shows the ability to generate earnings on the Group's assets, excluding financing costs. |
| Run rate yield | Net operating income (including property administration) according to cur rent earnings capacity with add-back of site leasehold fees, as a percentage of the carrying amounts of the properties at the end of the period. |
The KPI shows the earnings generation of the operations before financial expenses and central administration costs are taken into account. |
| Run rate EBITDA | Net operating income according to current earnings capacity less central administration costs plus dividends received from joint ventures and associated companies. |
Sagax uses EBITDA so that the EBITDA/Net debt, run rate KPI shows financial risk. |
| Amounts in SEK M unless otherwise stated |
2022 Jan-Mar |
2021 Jan-Mar |
2021 Jan-Dec |
|---|---|---|---|
| Return on equity | |||
| Profit after tax | 1,581 | 2,157 | 9,807 |
| Addition for translation to annual value |
4,743 | 6,471 | – |
| Average equity | 31,931 | 23,617 | 26,766 |
| Return on equity | 20% | 37% | 37% |
| Return on total capital | |||
| Profit from property management | 786 | 637 | 2,805 |
| Addition for translation to annual value |
2,358 | 1,911 | – |
| Financial expenses | 117 | 107 | 447 |
| Addition for translation to annual value |
351 | 321 | – |
| Profit before financial expenses | 3,612 | 2,976 | 3,252 |
| Average total capital | 64,099 | 48,754 | 54,725 |
| Return on total capital | 6% | 6% | 6% |
| Occupancy rate by area | |||
| Contracted area, '000s sqm | 3,706 | 3,374 | 3,625 |
| Total lettable area, '000s sqm | 3,847 | 3,544 | 3,759 |
| Occupancy rate by area | 96% | 95% | 96% |
| Debt ratio | |||
| Interest-bearing liabilities | 27,948 | 21,701 | 26,354 |
| Total assets | 65,762 | 50,885 | 62,472 |
| Debt ratio | 42% | 43 43 43% | 42% |
| Property yield | |||
| Net operating income | 712 | 602 | 2,573 |
| Add-back of site leasehold fees | –7 | –6 | –26 |
| Addition for translation to annual value |
2,115 | 1,788 | – |
| Holding adjustment, | |||
| acquisitions/divestments | 20 | 37 | 139 |
| Currency translation to closing rate | –34 | 20 | 44 |
| Adjusted net operating income | 2,806 | 2,441 | 2,730 |
| Carrying amount of properties | 48,403 | 40,410 | 46,067 |
| Property yield | 5.8% | 6.0% | 6.0% |
| EBITDA rolling 12 months | |||
| Net operating income | 2,682 | 2,434 | 2,573 |
| Central administration | –153 | –133 | –147 |
| Dividends from joint ventures and associated companies |
135 | 424 | 373 |
| EBITDA | 2,664 | 2,725 | 2,799 |
| Equity per Class A and B share | |||
| Equity | 32,783 | 24,783 | 31,079 |
| Equity attributable to Class D shares |
–4,419 | –4,990 | –4,419 |
| Equity attributable to Class A and B shares |
28,364 | 19,793 | 26,660 |
| No. of shares | 317,653,595 317,279,530 317,653,595 | ||
| No. of shares after dilution | 318,187,942 318,037,989 317,984,595 | ||
| Equity per Class A and B share, SEK | 89.29 | 62.38 | 83.93 |
| Equity per Class A and B share after dilution, SEK |
89.14 | 62.23 | 83.84 |
| Amounts in SEK M unless otherwise stated |
2022 Jan-Mar |
2021 Jan-Mar |
2021 Jan-Dec |
|---|---|---|---|
| Economic occupancy rate | |||
| Contractual annual rent | 3,469 | 3,019 | 3,324 |
| Rental value | 3,608 | 3,176 | 3,459 |
| Economic occupancy rate | 96% | 95% | 96% |
| Run rate yield | |||
| Net operating income according to current earnings capacity |
2,859 | 2,496 | 2,761 |
| Add-back of site leasehold fees | –28 | –24 | –26 |
| Adjusted net operating income | 2,831 | 2,472 | 2,735 |
| Carrying amount of properties | 48,403 | 40,410 | 46,067 |
| Run rate yield | 5.8% | 6.1% | 5.9% |
| Run rate EBITDA | |||
| Net operating income according | |||
| to current earnings capacity | 2,682 | 2,496 | 2,761 |
| Central administration | –153 | –133 | –147 |
| Dividends from joint ventures | |||
| and associated companies | 135 | 424 | 373 |
| Run rate EBITDA | 2,664 | 2,787 | 2,987 |
| Profit from property management | |||
| Profit after tax | 1,581 | 2,157 | 9,807 |
| Tax | 378 | 489 | 1,294 |
| Changes in value | –1,173 | –2,010 | –8,297 |
| Profit from property management | 786 | 636 | 2,805 |
| Profit from property management per Class A and B share after dilution | |||
| Profit from property management | 786 | 636 | 2,795 |
| Dividends attributable to Class | |||
| D shares | –63 | –63 | –253 |
| Adjusted profit from property management |
723 | 573 | 2,543 |
| Profit from property management | |||
| per Class A and B share after dilution, SEK |
2.27 | 1.80 | 7.99 |
| Profit from property management per Class A and B shares, rolling 12 months | |||
| Profit from property management, | |||
| rolling 12 months | 2,935 | 2,461 | 2,805 |
| Dividends attributable to Class D shares, rolling 12 months |
–253 | –253 | –253 |
| Adjusted profit from property management |
2,700 | 2,208 | 2,552 |
| No. of Class A and B shares after | |||
| dilution, rolling 12 months | 317,862,541 317,807,234 318,010,050 | ||
| Profit from property management per Class A and B share, current period, rolling 12 months |
8.49 | 6.95 | 7.99 |
| Profit from property management | |||
| per Class A and B share, preced ing period, rolling 12 months |
6.95 | 5.84 | 6.62 |
| Annual percentage growth rate, rolling 12 months |
22% | 19% | 21% |
| Rental revenue, comparable portfolios | |||
| Rental revenue | 885 | 731 | 3,100 |
| Acquired and sold properties | –122 | –29 | –558 |
| Currency adjustment1) | – | 15 | – |
| Other adjustment | –11 | – | –6 |
| Rental revenue, comparable port | |||
| folios excluding currency effects | 751 | 717 | 2,535 |
1) The preceding period has been adjusted based on the assumption that the exchange rate is the same as in the current period.
| Amounts in SEK M | 2022 | 2021 | 2021 |
|---|---|---|---|
| unless otherwise stated | Jan-Mar | Jan-Mar | Jan-Dec |
| Cash flow per Class A and B share | |||
| Profit before tax | 1,780 | 2,512 | 10,543 |
| Items not affecting cash flow | –1.052 | –2,032 | –8,051 |
| Tax paid | –59 | –66 | –146 |
| Dividends attributable to Class D | |||
| shares | –63 | –63 | –253 |
| Cash flow | 607 | 351 | 2,093 |
| Cash flow per Class A and B share after dilution, SEK |
1.91 | 1.10 | 6.58 |
See page 12.
| Net debt according to EMTN programme Interest-bearing liabilities 27,948 21,701 26,354 Cash and cash equivalents and listed shares –8,838 –2,763 –9,464 Net debt according to EMTN programme 19,110 18,938 16,890 Net debt according to EMTN programme/Total assets Net debt according to EMTN programme 19,110 18,938 16,890 Total assets 65,755 50,885 62,472 Net debt according to EMTN pro gramme/Total assets 29% 37% 27% Net debt/EBITDA Net debt 18,422 18,398 16,214 EBITDA rolling 12 months 2,664 2,725 2,799 Net debt/EBITDA 6.9x 6.8x 5.8x Net debt/run rate EBITDA Net debt 18,422 18,398 16,214 EBITDA, run rate 2,841 2,787 3,006 Net debt/EBITDA run rate 6.5x 6.6x 5.4x Net debt/Total assets Net debt 18,422 18,398 16,214 Total assets 65,755 50,885 62,472 Net debt/Total assets 28% 36% 26% Earnings per Class A and B share1) Profit after tax 1,581 2,157 9,807 Dividends attributable to Class D shares –63 –63 –253 Adjusted profit after tax 1,518 2,094 9,554 Earnings per Class A and B share after dilution, SEK 4.77 6.59 30.04 Interest coverage ratio Profit from property management 786 637 2,805 Reversal of profit from property management joint ventures and associated companies –187 –161 –713 Dividend from joint ventures and associated companies 135 – 373 Financial expenses 117 107 447 Adjusted profit from property management before financial expenses 851 583 2,912 |
||||
|---|---|---|---|---|
| Interest coverage ratio | 7.3x | 5.4x | 6.5x |
1) IFRS performance measure.
| Amounts in SEK M | 2022 | 2021 | 2021 |
|---|---|---|---|
| unless otherwise stated | Jan-Mar | Jan-Mar | Jan-Dec |
| Interest coverage ratio, EMTN programme | |||
| Profit from property management | 786 | 637 | 2,805 |
| Net financial items | 77 | 96 | 334 |
| Profit from property management | |||
| before net financial items | 863 | 733 | 3,139 |
| Interest coverage ratio | 11.1x | 7.6x | 9.4x |
| Equity/assets ratio | |||
| Equity | 32,783 | 24,783 | 31,079 |
| Total assets | 65,762 | 50,885 | 62,472 |
| Equity/assets ratio | 50% | 49% | 50% |
| Net asset value | |||
| Equity | 32,783 | 24,783 | 31,079 |
| Equity attributable to Class D shares | –4,419 | –4,990 | –4,419 |
| Reversal of derivatives | –8 | 76 | 74 |
| Reversal of deferred tax | 3,529 | 2,919 | 3,383 |
| Reversals due to | |||
| joint ventures | 984 | 902 | 1,019 |
| Net asset value | 32,869 | 23,690 | 31,136 |
| NAV per Class A and B share after | |||
| dilution, SEK | 103.30 | 74.49 | 97.92 |
| Secured liabilities/total assets | |||
| Secured liabilities | 87 | 3,234 | 189 |
| Total assets | 65,762 | 50,885 | 62,472 |
| Secured liabilities/Total assets |
0% | 6% | 0% |
| Surplus ratio | |||
| Net operating income | 2,682 | 2,434 | 2,573 |
| Rental revenue | 3,254 | 2,927 | 3,100 |
| Surplus ratio | 82% | 83% | 83% |
AB Sagax is a property company whose business concept is to invest in commercial properties, primarily in the warehouse and light industrial segment. Sagax's property holdings on 31 March 2022 amounted to 3,847,000 square metres, distributed between 690 properties. AB Sagax (publ) is listed on Nasdaq Stockholm, Large Cap. More information is available at www.sagax.se.
AB Sagax (publ), Engelbrektsplan 1, SE-114 34 Stockholm, Sweden Corp. Reg. No. 556520-0028 Tel: +46 8 545 83 540 www.sagax.se
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