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Wihlborgs Fastigheter
Quarterly Report • Apr 26, 2022
2995_10-q_2022-04-26_038ca886-d859-4bdc-91ed-6e3ac6ede180.pdf
Quarterly Report
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Wihlborgs' Interim report 2022
January–March
NET LETTING REMAIN STRONG AND EARNINGS RISE
Rental income increased by 8 percent to SEK 795 million (738)
Operating surplus increased by 9 percent to SEK 557 million (509)
Income from property management increased by 12 percent to SEK 467 million (416)
Profit for the period amounted to SEK 816 million (478), corresponding to earnings per share of SEK 5.31 (3.11)
EPRA NRV per share increased by 2,5 percent to SEK 177.04 (172.65)
This is Wihlborgs
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, club rooms 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 51 billion, representing an annual rental value of SEK 3.5 billion. Wihlborgs' shares are listed on the Large Cap List of Nasdaq Stockholm.
Our business concept
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.
Our business model
We work continuously to improve our property portfolio by refining and developing existing properties, completing new projects and acquiring and selling properties. Strong financial results enable value growth and dividends to our shareholders.
Our sustainability
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.
Content
| CEO's comments 04 | |
|---|---|
| Market comments 05 | |
| Income, expenses and profit 06 | |
| Assets 08 | |
| Sustainable business 11 | |
| Liabilities and equity 12 |
| Financial reports 15 | |
|---|---|
| Key figures 20 | |
| Definitions 22 | |
| Calendar 23 | |
| Contact 23 | |
Property value, SEK billion 50.6
Rental income, SEK million
795
Income property management, SEK million
467
Januari – March 2022
| Group key figures, SEK m | 2022 Jan–Mar |
2021 Jan–Mar |
|---|---|---|
| Rental income | 795 | 738 |
| Operating surplus | 557 | 509 |
| Income property management | 467 | 416 |
| Changes in value of properties | 221 | 74 |
| Changes in value of derivatives | 340 | 97 |
| Result for the period | 816 | 478 |
| Earnings per share, SEK | 5.31 | 3.11 |
| Surplus ratio, % | 70 | 69 |
| Equity/assets ratio, % | 43.6 | 41.5 |
| Occupancy rate, %* | 92 | 90 |
| EPRA NRV per share, SEK | 177.04 | 155.59 |
*) Excluding Projects & Land.
Financial targets
| Target | Outcome Q1 2022 | |
|---|---|---|
| A return on equity that exceeds the risk-free interest rate by not less than six percentage points, which for the beginning of 2022 corresponds to 6,12 percent |
14.6 | |
| An equity/assets ratio of no less than 30 percent | 43.6 | |
| An interest coverage ratio of no less than 2.0 | 7.3 | |
| The loan-to-value ratio is not to exceed 60 percent | 45.8 |
CEO's comments
High levels of optimism among our customers
The human suffering and consequences of the ongoing war in Ukraine are difficult to comprehend. The war affects all of us in many ways and the length of the conflict is difficult to predict, as are the long-term effects on the economy. But we made it through the pandemic in one piece, and we were able to help vulnerable customers weather that storm. We know that we are well equipped, organisationally and financially, to stay stable and to provide long-term, sustainable contributions. We can also note that our customers have the confidence to invest in the future. Optimism and action are at high levels, even at a time when many future parameters are unknown.
Wihlborgs can once again post a strong first quarter. We can follow up the fourth quarter's record high net lettings with a strong figure of SEK 28 million for the first quarter. All four of our regions contributed positively and a large number of new as well as existing tenants collectively led to healthy net lettings.
Rental income for the quarter amounted to SEK 795 million, an increase of 8 percent. The operating surplus amounted to SEK 557 million, up 9 percent, corresponding to a surplus ratio of 70 percent for the quarter. Income from property management rose 12 percent to SEK 467 million. Generally, we have noted some seasonal variation in our
expenses over the quarters, but I want to point out that this is our best first-quarter performance to date. This in addition to positive changes of SEK 221 million in the value of properties. This was driven primarily by somewhat higher inflation assumptions that have a positive effect on future rental income in the valuation models as well as by project lettings. Higher market interest rates led to positive changes in value of SEK 340 million in our interest-rate derivatives during the quarter.
"All four of our regions contributed positively and a large number of new as well as existing tenants collectively led to healthy net lettings."
Stable financing
Altogether this strong performance led to an equally strong balance sheet. Our equity/assets ratio at the end of March amounted to 43.6 percent and the loan-to-value ratio was
45.8 percent. We have a long-term net asset value (EPRA NRV) per share of SEK 177, which is 17 percent higher yearon-year after adjustment for dividends distributed in 2021.
We continue to raise financing through bilateral bank loans and in the Danish mortgage-credit system. These sources of capital are less volatile than the bond market, which was evident this past spring. During the quarter, the average interest rate in our loan portfolio fell somewhat, and thanks to our strong cash flow the interest coverage ratio was a multiple of 7, a record-strong performance.
Against a backdrop of healthy demand, we continue to focus on our large project portfolio. During the quarter, construction started on the Space project in Lund, where we have already signed an agreement with Oatly for 3,100 square metres. Rising material prices and delivery difficulties have thus far not had any significant impact on our ongoing projects, which enjoy good overall protection, but naturally we are monitoring the situation closely.
The office in a new guise
During the quarter, we presented a follow up on the AI study into the meaning of the office that we first carried out in 2021. We can see that company awareness about employees' new expectations for flexibility and customisation at the office is increasing, and that several companies are now actively deciding to move in this direction. It is also clear that the
office is now regarded in an entirely different light now that workplaces, in addition to being attractive, need to be clear meeting places for collaboration, social contact, innovation and development. For Wihlborgs, the lively debate about how the office can help organisations reach their goals is very exciting. Workplaces are our core operation – this is an area where we can contribute.
"Against a backdrop of healthy demand, we continue to focus on our large project portfolo."
Despite various uncertainty factors in our operating environment, we are well equipped in terms of market position, financial position and focus on our core operation. From this position, we will continue to build Wihlborgs and the Öresund region.
Ulrika Hallengren, CEO
Market comments
Russia's war of aggression against Ukraine is not only a human rights disaster, but it has also changed economic preconditions and entails the second major shock to the global economy in a short time. In its most recent report, the Swedish National Institute of Economic Research notes that the Swedish economy is performing well, despite the war, and that by the end of 2022 it will enter a moderately expansive phase. They expect that the Riksbank (the Swedish Central Bank) will introduce a more restrictive monetary policy in the future and bring forward its interest rate increases. At the same time, Swedish GDP growth has remained high thanks to significantly increased public consumption. In the Economic Tendency Survey for March, household confidence indicators fell dramatically to their lowest levels since 2009, whereas the service sector developed somewhat positively, with demand that improved over the past three months.
Swedbank's economic outlook report revised global growth substantially downward, due to higher energy and raw material prices stemming from the war, which are slowing household consumption. Unlike many European countries, Sweden's direct economic dependence on Russia and Ukraine is limited. GDP growth of 2.8% (3.3 in Jan. 2022) is forecast for Sweden for 2022 and 2.1% (2.0) for 2023. Inflation, measured as CPIF, is expected to end up at 5.0% (3.2) for
2022 before falling to 2.5% (1.9) for 2023 due to lower energy prices. Rising inflation was a reality even before the war, but the risk is now that inflation will be more long-term, since the CPIF (excluding energy) is also rising significantly. Swedbank expects that the repo rate will be 1.0% by the end of 2022, with an initial increase in April, and that it will be met by a more expansive fiscal policy. GDP growth of 2.4% (3.0) is forecast for Denmark for 2022 and 2.0% (1.9) for 2023. High inflation of 4.8% (2.4) is expected for 2022 but it is then expected to fall to 2.0% (1.7) for 2023.
According to Cushman & Wakefield's most recent report, the rent trend in Malmö is stable and increasing in the Hyllie sub-area. The average vacancy rate decreased from 9% in the third quarter of 2021 to 7.5% in the first quarter of 2022, with a decrease from 11% to 8% in Västra Hamnen. In Denmark, Colliers reports stable trends for rents and yield requirements for Wihlborgs's sub-areas in Copenhagen.
The transaction volume for the first quarter was high, at SEK 69 billion, up 81% year-on-year according to Pangea. Catena's acquisition of two logistics properties in Umeå and Halmstad confirms low yield requirements of under 4%. In Denmark, the volume was approximately DKK 23 billion, up 14% year-on-year. Worth noting is that Cibus made its first portfolio acquisition in Denmark for SEK 3 billion.
Comparative figures for income statement items relate to values for the corresponding period 2021 and balance sheet items as of 2021-12-31.
Income, expenses and profits, January– March 2022
Rental income
Rental income amounted to SEK 795 million (738) corresponding to an increase by 8 percent. Of the rental income, service income accounted for SEK 83 million (69). Revenues have been affected positively by index increases of SEK 13 million and property acquisitions/divestments of SEK 10 million (-24) net. In addition, reduced vacancies had a positive effect of SEK 8 million (-20). Exchange rate effects during the period amounted to SEK 5 million. Service income from canteens in the Danish operations increased by SEK 5 million, mainly due to increased tenant presence in the properties after the pandemic. Other changes in revenues of 2 percent have been affected by completed projects, renegotiations and new leases.
At the end of the period the occupancy rate for investment properties, excluding Projects & Land, is 92 percent which is unchanged compared with the end of last year.
During the period new leases were signed to a value of SEK 53 million (56) on an annualized basis. Lease terminations totalled SEK 26 million (47). This represents a net letting of SEK 28 million (9).
Terms of Wihlborgs' contracts per 31 March 2022 Löptider för Wihlborgs hyreskontrakt per 31 december 2021 Net letting, quarterly
-100 -80
Ten largest tenants per 31 March 2022
21 %
Rental income from ten largest tenants
Rental income from governmental tenants
- City of Helsingborg Danish Building and
- City of Malmö
Net New leases Terminations
- Danske Bank
- Ericsson AB
- Lunds University
- Malmö University
- Property Agency
- SAAB
- Skåne Regional Council
- Swedish Tax Agency
Property expenses
Total property expenses amounted to 238 million (229). Bad debt losses was SEK 0 million (1) during the period. The increase in property costs is mainly attributable to the Danish portfolio, where a large part is due to the reopening of the canteen operations. In addition, the previous year's acquisition of three properties has led to increased costs, as well as an increase in energy costs in Denmark. The historical summary at the bottom of page 17 illustrates how costs vary over the different quarters of the year.
Operating surplus
The operating surplus amounted to 557 million (509) representing a surplus ratio of 70 percent (69). Of the change, SEK 7 million (-16) was attributable to property acquisitions and divestments, in addition, currency effects have affected by SEK 4 million (-5).
Central administration
The costs for central administration were SEK 22 million (21).
Financial income and expense
Net interest totalled SEK -69 million (-72), of which interest income accounted for 4 million (4). The interest expense for the period, incl. realized effects from interest rate derivatives, was 73 million (76). Interest expense relating to interest rate derivatives amounted to SEK 15 million (16). At the end of the period, the average interest rate, including the cost of credit agreements, was 1.27 percent, compared with 1.32 percent at year-end.
Income from property management
Profit participation in joint ventures amounted to SEK 2 million (1). Income from property management amounted to SEK 467 million (416).
Pre-tax profit
The pre-tax profit, i.e. after value changes on properties and derivatives, was SEK 1,028 million (587). During the period, value changes on properties amounted to SEK 221 million (74). Value changes on derivatives amounted to SEK 340 million (97) of which SEK 343 million (99) are attributable to interest rate derivates and -3 million (-2) to other financial items.
Profit after taxes
The profit after taxes was SEK 816 million (478). Total tax amounted to SEK 212 million (109), of which current tax SEK 12 million (11) and deferred tax SEK 200 million (98).
Wihlborgs was named one of Sweden's best workplaces for the fifth consecutive year by Great Place to Work, placing it in the "Hall of Fame" as one of ten companies. This is a distinction that illustrates the importance of working long-term and sustainably with culture, leadership and work environment. In Denmark, Wihlborgs moved up from 22 on the list to a creditable 7 of Denmark's best places to work. Read more about this on p. 11.
Assets
Property portfolio as of 31 March 2022
The summaries below are based on Wihlborgs' property portfolio as of 31 March 2022. Rental income relates to contracted rental income on an annual basis as of 1 April 2022.
The operating surplus is based on the properties' earning capacity on an annual basis based on rental income for April 2022, 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 2022 consisted of 298 properties (299) with a lettable area of 2,143,000 m2 (2,143,000). 7 of the properties (7) are leasehold rights.
The properties' carrying amount was SEK 50,618 million (50,033), which corresponds to the estimated market value. The total rental value was SEK 3,465 million (3,472) and the contracted rental income on annual basis SEK 3,168 million (3,128). The like-for-like increase in rental value was 4.3 percent while contracted rental income increased by 5.7 percent compared to 12 months previously.
The economic occupancy rate for Office/Retail properties was 92 percent (92) and for Logistics/Production properties 94 percent (93). The rental value for Office/Retail properties represented 83 percent and Logistics/Production properties 16 percent of the total rental value.
The operating surplus from investment properties, excluding property administration and Projects/Land, is SEK 2,431 million (2,401) which with a carrying amount of SEK 47,617 million (47,194) corresponds to a yield of 5.1 percent (5.1). Broken down by property category, this is 4.9 percent (4.9) for Office/Retail and 6.3 percent (6.3) for Logistics/ Production.
Rental value per property category, % Rental value per area, % Projects/Land 1% Logistics/Production 16 % 83 % Hyresvärde per fastighetskategori 26 % Malmö 36% Copenhagen 21% 18 % Hyresvärde per område
Lund
Helsingborg
Redovisat värde
Ofce/Retail
Redovisat värde
IIn March, the first earth was turned for Space (Kunskapen 1), where the world-leading oat-drink manufacturer Oatly will establish a new research and innovation centre. Space will be the first building to be constructed between the research facilities ESS and MAX IV in Science Village in Lund. The ceremony was attended by (from right) Sofia Ehlde, Global Innovation Director of Oatly; Philip Sandberg, Mayor of the City of Lund; Ulrika Hallengren, CEO of Wihlborgs; and Christian Lindfors, CEO of Science Village Scandinavia AB.
Changes in values of properties
By year-end the valuation of all Wihlborgs' properties is carried out by external valuers. The valuation of the properties as of March 31, 2022 has taken place internally and has meant that the property value has increased by SEK 221 million (74). The value increases are largely driven by slightly higher inflation assumptions, 2.9% against the previous 2.1% for 2022, and thus expected rent increases. The remaining part comes from new leases, renegotiations and project development.
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 the 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 2021 Annual Report.
As of 31 March 2022 the carrying amount for the properties is SEK 50,618 million (50,033).
| Changes in carrying amount of properties | ||||
|---|---|---|---|---|
| Changes | Group total, SEK m | |||
| Carrying amount 1 January 2022 | 50,033 | |||
| Acquisitions | 0 | |||
| Investments | 270 | |||
| Properties sold | -1 | |||
| Change in value | 221 | |||
| Currency translations | 95 | |||
| Carrying amount 31 March 2022 | 50,618 |
Projects/Land 6 % Logistics/Production 13 % 81 % Redovisat värde per fastighetskategori 24 % Malmö 42 % Copenhagen 18 % 17 % Redovisat värde per område Net value per property category, % Net value per area, %
Lund
Projects/Land 1% Copenhagen 21%
Hyresvärde per område
18 % Lund
83 % Ofce/Retail
26 % Helsingborg
Helsingborg
Malmö 36%
Logistics/Production 16 %
Hyresvärde per fastighetskategori
Investments and current projects
Investments in the property portfolio totalled SEK 270 million (208).
Ofce/Retail
Approved investments in ongoing projects amount to SEK 2,967 million, of which 693 million had been invested at the end of period.
Liquid assets
The Groups liquid assets totalled SEK 749 million (695) including unutilized overdraft facilities.
At the end of the period unutilized credit facilities amounted to SEK 2,513 million (2,520).
| Investments in progress >SEK 50 million, 31 March 2022 | |||||||
|---|---|---|---|---|---|---|---|
| Property | Category of use |
Municipality | Completion date |
Lettable area, m2 |
Occupancy rate, % |
Estimated invest ment, SEK m |
Expended 2022-03-31, SEK m |
| Hindbygården 7 | Office/Retail | Malmö | Q3 2022 | 1,800 | 100 | 59 | 40 |
| Raffinaderiet 3 | Office/Retail | Lund | Q4 2022 | 5,800 | 50 | 170 | 68 |
| Huggjärnet 13 | Logistics/Production Helsingborg | Q2 2023 | 8,000 | 40 | 108 | 7 | |
| Snårskogen 5 | Logistics/Production Helsingborg | Q1 2023 | 2,200 | 100 | 60 | 3 | |
| Pulpeten 5 | Office/Retail | Malmö | Q2 2023 | 16,000 | 85 | 804 | 285 |
| Kunskapen 1 | Office/Retail | Lund | Q3 2023 | 6,000 | 50 | 244 | 19 |
| Posthornet 1 | Office/Retail | Lund | Q4 2024 | 9,900 | 0 | 448 | 8 |
| Bläckhornet 1 | Office/Retail | Malmö | Q1 2025 | 16,600 | 0 | 884 | 18 |
| Total | 66,300 | 2,777 | 448 |
| 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, % |
| Malmö | 340,563 | 43,145 | 167,172 | 35,256 | 15,9591 | 602,095 | 28 |
| Helsingborg | 221,416 | 65,159 | 286,906 | 40,771 | 12,9422 | 627,194 | 29 |
| Lund | 197,882 | 14,656 | 35,709 | 4,429 | 9,2223 | 261,898 | 12 |
| Copenhagen | 470,467 | 8,396 | 124,971 | 12,508 | 35,3864 | 651,728 | 31 |
| Total | 1,230,328 | 131,356 | 614,758 | 92,964 | 73,509 | 2,142,915 | 100 |
| Andel, % | 57 | 6 | 29 | 4 | 4 |
1) Includes 10,275 m2 hotel. 2) Includes 1,819 m2 residential 3) Includes 8,215 m2 hotel
4) Includes 5,600 m2 hotel
| Analysis per property category in each management area | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Area/ property category |
Number of properties |
Area, m2 thousand |
Carrying amount, SEK m |
Rental value, SEK m |
Rental value, SEK/m2 |
Economic occupancy rate, % |
Rental income, SEK m |
Operating surplus incl. property admin., SEK m |
Surplus ratio, % |
Operating surplus excl. property ad min., SEK m |
Yield excl. property admin., % |
| Malmö | |||||||||||
| Office/Retail | 49 | 432 | 17,511 | 1,059 | 2,449 | 93 | 988 | 765 | 77 | 801 | 4.6 |
| Logistics/Production | 30 | 141 | 2,014 | 150 | 1,064 | 98 | 148 | 118 | 80 | 126 | 6.3 |
| Projects & Land | 21 | 29 | 1,556 | 25 | 863 | - | 9 | -2 | - | 1 | - |
| Total Malmö | 100 | 602 | 21,081 | 1,234 | 2,049 | 93 | 1,145 | 881 | 77 | 928 | 4.4 |
| Helsingborg | |||||||||||
| Office/Retail | 37 | 271 | 8,270 | 562 | 2,077 | 90 | 505 | 386 | 77 | 404 | 4.9 |
| Logistics/Production | 57 | 356 | 3,465 | 324 | 911 | 91 | 294 | 209 | 71 | 225 | 6.5 |
| Projects & Land | 11 | 1 | 124 | 1 | 1,514 | - | 1 | 0 | - | 0 | - |
| Total Helsingborg | 105 | 627 | 11,859 | 888 | 1,415 | 90 | 800 | 595 | 74 | 630 | 5.3 |
| Lund | |||||||||||
| Office/Retail | 25 | 232 | 7,784 | 576 | 2,480 | 91 | 521 | 374 | 72 | 413 | 5.3 |
| Logistics/Production | 4 | 23 | 276 | 20 | 895 | 94 | 19 | 14 | 73 | 15 | 5.6 |
| Projects & Land | 4 | 7 | 510 | 13 | 1,906 | - | 2 | -3 | - | -1 | - |
| Total Lund | 33 | 262 | 8,570 | 610 | 2,327 | 89 | 543 | 385 | 71 | 427 | 5.0 |
| Copenhagen | |||||||||||
| Office/Retail | 48 | 528 | 7,560 | 678 | 1,284 | 92 | 625 | 377 | 60 | 406 | 5.4 |
| Logistics/Production | 9 | 61 | 737 | 56 | 919 | 98 | 55 | 39 | 72 | 40 | 5.5 |
| Projects & Land | 3 | 63 | 812 | 0 | - | - | 0 | -1 | - | 0 | - |
| Total Copenhagen | 60 | 652 | 9,109 | 734 | 1,127 | 93 | 680 | 415 | 61 | 446 | 4.9 |
| Total Wihlborgs | 298 | 2,143 | 50,618 | 3,465 | 1,617 | 91 | 3,168 | 2,276 | 72 | 2,430 | 4.8 |
| Total excluding projects and land |
259 | 2,044 | 47,617 | 3,426 | 1,676 | 92 | 3,155 | 2,282 | 72 | 2,431 | 5.1 |
Property transactions
During the quarter, Wihlborgs has sold the project property Barrikaden 3 in Helsingborg for SEK 1 million.
| Property transactions January–March 2022 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Quarter | Property | Municipality | Management area | Category | Area, m2 |
Price, SEK m |
Operating surplus 2022, SEK m1 |
|
| Acquisitions | ||||||||
| Total acquisitions 2022 | ||||||||
| Sales | ||||||||
| Q1 | Barrikaden 3 | Helsingborg | Helsingborg Centrum | Project/Land | - | - | - | |
| Total sales 2022 | 0 | 1 | 0 | |||||
1) Operating surplus from properties acquired and sold that are included in the results for the period.
Sustainable Business
Prioritised sustainability topics
Wihlborgs' sustainability agenda focuses on the areas where our operations have the greatest impact and can make the greatest difference. The goals for the Group to achieve in 2022 are established and monitored quarterly, with particular regard to environmental certifications, energy consumption and climate impact.
Environmental certifications
One prioritised area that engages large portions of the management organisation is investing in the certification of existing office properties in Sweden according to Miljöbyggnad In-Use. Certification gained speed during the first quarter of 2022 and we received six new certifications, with seven more planned for the second quarter. With current plan, the certification level will be approximately 77 percent by the end of the year.
Energy and climate
Wihlborgs' efforts to adapt to and to limit its contribution to climate change is high on the agenda. The goal for 2022 is for direct (Scopes 1 and 2) CO2 emissions to not exceed 1.5 kg/ m2 , which was achieved in the last two years.
Emissions during the first quarter were lower year-on-year primarily due to a reduced need for heating in properties during the winter and a higher share of biogas in the Danish district heating network.
The focus going forward is on emissions in the value chain (Scope 3), where the goal is to halve emissions by 2030, compared with a base year of 2020. A large share of Scope 3 emissions are caused by Wihlborgs' construction projects. During the quarter, a new target limit of 270 CO2/m2 was set for new construction in order to limit the climate impact of new properties. Dismantling and reusing construction products and interior fittings also helps lower climate impact, primarily in redevelopments and tenant improvements.
| Key figures - sustainable properties | |||||||
|---|---|---|---|---|---|---|---|
| Measure | Target | 2022 | 2021 | 2021 | |||
| (as of Dec | Jan-Mar | Jan-Mar | Jan–Dec | ||||
| 2022) | 3 months | 3 months | 12 months | ||||
| Environmental certifications | % of floor area (office, Sweden) | > 80 | 38 | 29 | 36 | ||
| CO2 emissions (scope 1 & 2) |
kg CO2 e/m2 |
< 1,5 | 0,4 | 0,5 | 1,4 | ||
| Energy use | kWh/m2 | < 95 | 34 | 39 | 102 |
Wihlborgs - a "Great Place to Work"
Wihlborgs strives to be the best employer in the property sector. This is measured through an annual employee survey and a comprehensive evaluation carried out in collaboration with the established research company Great Place to Work.
By autumn 2021 it was clear that Wihlborgs would once again be certified as a Great Place to Work. The list of Sweden's best workplaces was published in the first quarter this year, with Wihlborgs ranked 17 among mid-sized companies and at the top of the list among similarly sized commercial property companies. This was the fifth consecutive year that Wihlborgs was named one of Sweden's best workplaces, earning the company a spot among only ten companies in Great Place to Work's Hall of Fame.
Developing workplace culture is long term and requires perseverance. It is an important initiative and helps create commitment and well-being for Wihlborgs employees, which in turn is reflected in customer service. A strong, sustainable workplace culture is therefore an important precondition for delivering customer value and growth in operations.
The survey from Great Place to Work confirms that Wihlborgs has satisfied employees that rate their workplace highly. For example, nine out of ten respondents agree with the statement "overall, Wihlborgs is an excellent workplace," which as a collected rating shows that our initiatives are showing results.
Sustainability reporting at Wihlborgs
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/.
Liabilities and equity
As of 31 March 2022 equity totalled SEK 22,769 million (21,948). The equity/assets ratio stood at 43.6 percent (42.9). The proposed dividend to the 2022 Annual General Meeting amounts to SEK 6 (5,25) per share, a total of SEK 922 million (807).
Interest-bearing liabilities
The group's interest-bearing liabilities as of 31 March amounted to SEK 23,162 million (23,278) with an average interest rate including costs for credit agreements of 1.27 percent (1.32).
With consideration to the company's net debt of SEK 23,2 billion, the loan-to-value ratio is 45.8 percent (46.5) as a percentage of property values.
The loans' average fixed interest period including effects of derivatives on 31 March 2022 amounted to 2.8 years (2.9). The average loan maturity, including commited credit facilities, amounted to 6.3 years (6.0).
| Structure of interest and loan maturities as of 31 March 2022 | |||||||
|---|---|---|---|---|---|---|---|
| Interest maturity | Loan maturity | ||||||
| Matures, year |
Loan amount, SEK m |
Av. interest rate, % |
Credit ag., SEK m |
Utilised, SEK m |
|||
| 2022 | 11,152 | 0.97 | 1,256 | 1,256 | |||
| 2023 | 2,999 | 1.18 | 992 | 992 | |||
| 2024 | 1,788 | 1.41 | 9,483 | 8,260 | |||
| 2025 | 1,788 | 1.42 | 5,405 | 4,115 | |||
| 2026 | 1,252 | 1.59 | 554 | 554 | |||
| >2026 | 4,182 | 1.65 | 7,985 | 7,985 | |||
| Totalt | 23,162 | 1.23 | 25,675 | 23,162 |
*) 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 2022 | ||||||
|---|---|---|---|---|---|---|
| Interest rate swaps | ||||||
| Maturity | Amount, SEK m | Interest, % | ||||
| 2022 | 1,065 | 0.11 | ||||
| 2023 | 2,430 | 0.39 | ||||
| 2024 | 1,788 | 0.41 | ||||
| 2025 | 1,788 | 0.42 | ||||
| 2026 | 1,252 | 0.59 | ||||
| >2026 | 2,504 | 0.70 | ||||
| Totalt | 10,827 | 0.47 |
The fair value in Wihlborgs' interest rate derivative portfolio amounted to 374 million (31).
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 2021 Annual Report.
During the first quarter, Wihlborgs signed an agreement with SportAdmin and Avensia for premises at Sparven 15 on Drottninggatan in central Malmö, which previously housed the game developer Massive Entertainment. Avensia is currently a tenant of Wihlborgs in both Lund and Helsingborg. Sparven 15 is a historic property that has been carefully renovated and that has modern and climate-smart technology, ventilation and cooling installed.
Miscellaneous
Employees
At the end of the period, the number of FTEs at Wihlborgs was 255 (250) of which 106 (104) were in property service. Of the total number of FTEs 78 (77) were in Malmö, 34 (34) in Helsingborg, 30 (31) in Lund and 113 (108) in Copenhagen. The average age of employees is 44 år and women make up 43 (42) percent.
Parent company
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 (0) in shares in subsidiaries and other shares.
The parent company's income statement and balance sheet are found on page 18.
Participations in other companies
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 2021 Annual Report.
Largest shareholders
The largest shareholder in Wihlborgs is Erik Paulsson with family and company, with 11.0 percent of the shares outstanding.
Shares held by owners registered abroad account for 36 percent. The number of shareholders is approximately 29,000.
| Largest shareholders in Wihlborgs 31 March 2022 | |||||
|---|---|---|---|---|---|
| Number of shares, thousands |
Proportion of equity and votes, % |
||||
| Erik Paulsson with family, privately and via company |
16,938 | 11.0 | |||
| SEB Investment Management | 10,641 | 6.9 | |||
| Länsförsäkringar funds | 7,691 | 5.0 | |||
| Swedbank Robur funds | 5,724 | 3.7 | |||
| Handelsbanken funds | 4,938 | 3.2 | |||
| Bank of Norway | 3,214 | 2.1 | |||
| Qviberg family | 2,460 | 1.6 | |||
| AMF funds | 2,282 | 1.5 | |||
| Life insurance company Skandia | 1,962 | 1.3 | |||
| Lannebo funds | 1,874 | 1.2 | |||
| Other shareholders reg. in Sweden | 43,657 | 28.4 | |||
| Other shareholders reg. abroad | 52,331 | 34.1 | |||
| Total outstanding shares | 153,713 | 100.0 |
Development of share price 2021-01-01 – 2022-03-31 Course development 2021-01-01 – 2022-03-31
Significant risks and uncertainty factors
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.
On pages 84–89 and 101–102 in the Company's 2021 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.
Developments in the rest of the world as a result of the war in Ukraine have led to an increase in the probability of financing and interest rate risk materializing compared with the assessment at the turn of the year. There is also a risk that a lack of building materials can lead to increases in costs and delays in newly started and future projects.
Accounting policies
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 2022, 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 15-19.
Malmö 26 April 2022 Wihlborgs Fastigheter AB (publ)
Ulrika Hallengren, CEO
This interim report has not been reviewed by the company's auditors.
| Consolidated statement of income and comprehensive income in summary | ||||
|---|---|---|---|---|
| SEK m | 2022 | 2021 | 2021/2022 | 2021 |
| Jan-Mar | Jan-Mar | Apr-Mar | Jan-Dec | |
| 3 months | 3 months | 12 months | 12 months | |
| Rental income | 795 | 738 | 3,117 | 3,060 |
| Operating costs | -130 | -127 | -445 | -442 |
| Repairs and maintenance | -24 | -22 | -103 | -101 |
| Property tax | -50 | -49 | -193 | -192 |
| Property administration | -34 | -31 | -133 | -130 |
| Total propery costs | -238 | -229 | -874 | -865 |
| Operating surplus | 557 | 509 | 2,243 | 2,195 |
| Central administration | -22 | -21 | -84 | -83 |
| Interest income | 4 | 4 | 13 | 13 |
| Interest expense | -73 | -76 | -309 | -312 |
| Leasehold rent | -1 | -1 | -4 | -4 |
| Share in results of joint ventures | 2 | 1 | 7 | 6 |
| Income from property management | 467 | 416 | 1,866 | 1,815 |
| Change in value of properties | 221 | 74 | 2,300 | 2,153 |
| Change in value of derivatives | 340 | 97 | 445 | 202 |
| Pre-tax profit | 1,028 | 587 | 4,611 | 4,170 |
| Current tax | -12 | -11 | -58 | -57 |
| Deferred tax | -200 | -98 | -867 | -765 |
| Profit for the period1 | 816 | 478 | 3,686 | 3,348 |
| Other comprehensive income | ||||
| Items that will be reclassified to profit or loss for the year: | ||||
| Translation differences on recalculation of foreign operations | 40 | 68 | 39 | 67 |
| Hedging of currency risk in foreign operations | -43 | -67 | -45 | -69 |
| Tax attributable to items that will be reclassified to profit or loss for the year | 8 | 12 | 9 | 13 |
| Other comprehensive income for the period | 5 | 13 | 3 | 11 |
| Total comprehensive income for the period1 | 821 | 491 | 3,689 | 3,359 |
| Earnings per share2 | 5.31 | 3.11 | 23.98 | 21.78 |
| No. of shares at end of the period, thousands | 153,713 | 153,713 | 153,713 | 153,713 |
| Average no. of shares, thousands | 153,713 | 153,713 | 153,713 | 153,713 |
1) The entire profit/income 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.
| Consolidated statement of financial position in summary | ||||||
|---|---|---|---|---|---|---|
| SEK m | 2022-03-31 | 2021-03-31 | 2021-12-31 | |||
| ASSETS | ||||||
| Investment properties | 50,618 | 46,687 | 50,033 | |||
| Right-of-use assets | 148 | 148 | 150 | |||
| Other fixed assets | 383 | 389 | 396 | |||
| Derivatives | 374 | 65 | 94 | |||
| Current receivables | 329 | 291 | 164 | |||
| Liquid assets | 316 | 382 | 315 | |||
| Total assets | 52,168 | 47,964 | 51,152 | |||
| EQUITY AND LIABILITIES | ||||||
| Equity | 22,769 | 19,887 | 21,948 | |||
| Deferred tax liability | 4,819 | 3,946 | 4,622 | |||
| Borrowings | 23,162 | 22,613 | 23,278 | |||
| Lease liability | 146 | 146 | 149 | |||
| Derivatives | 0 | 149 | 63 | |||
| Other long-term liabilities | 44 | 57 | 45 | |||
| Current liabilities | 1,228 | 1,166 | 1,047 | |||
| Total equity & liabilities | 52,168 | 47,964 | 51,152 |
| Consolidated statement of changes in equity | |||||
|---|---|---|---|---|---|
| SEK m | Jan-Mar 2022 | Jan–Mar 2021 | Jan-Dec 2021 | ||
| Total equity at beginning of period | 21,948 | 19,396 | 19,396 | ||
| Equity attributable to parent company's shareholders | |||||
| Opening amount | 21,948 | 19,396 | 19,396 | ||
| Dividend paid | - | - | -807 | ||
| Profit for the period | 816 | 478 | 3,348 | ||
| Other comprehensive income | 5 | 13 | 11 | ||
| Total equity at end of period | 22,769 | 19,887 | 21,948 |
| Consolidated cash flow statement summary | |||
|---|---|---|---|
| SEK m | Jan-Mar 2022 | Jan-Mar 2021 | Jan-Dec 2021 |
| Operating activities | |||
| Operating surplus | 557 | 509 | 2,195 |
| Central administration | -22 | -21 | -83 |
| Non-cash items | 3 | 0 | 16 |
| Interest received | 30 | 1 | 2 |
| Interest paid | -80 | -80 | -312 |
| Income tax paid | -11 | -8 | -50 |
| Change in operating receivables | -73 | -48 | 0 |
| Change in operating liabilities | 79 | -40 | -78 |
| Cash flow from operating activities | 483 | 313 | 1,690 |
| Investment activities | |||
| Acquisitions of properties | 0 | -165 | -412 |
| Investments in existing properties | -270 | -208 | -1,236 |
| Sales of properties | 1 | - | 3 |
| Change in other non-current assets | -1 | -1 | -35 |
| Cash flow from investment activities | -270 | -374 | -1,680 |
| Financing activities | |||
| Dividend paid | - | - | -807 |
| Change in borrowing | 2,666 | 1,580 | 5,680 |
| Loan repayments | -2,877 | -1,334 | -4,766 |
| Change in other long-term liabilities | -1 | -8 | -7 |
| Cash flow from financing activities | -212 | 238 | 100 |
| Cash flow for the period | 1 | 177 | 110 |
| Opening cash flow | 315 | 205 | 205 |
| Closing cash flow | 316 | 382 | 315 |
Historical summary of last eight quarters
| SEK m | Q1 2022 | Q4 2021 | Q3 2021 | Q2 2021 | Q1 2021 | Q4 2020 | Q3 2020 | Q2 2020 |
|---|---|---|---|---|---|---|---|---|
| Rental income | 795 | 770 | 813 | 739 | 738 | 751 | 775 | 767 |
| Operating costs | -130 | -118 | -99 | -98 | -127 | -121 | -88 | -96 |
| Repairs and maintenance | -24 | -34 | -24 | -21 | -22 | -30 | -24 | -21 |
| Property tax | -50 | -45 | -49 | -49 | -49 | -49 | -54 | -52 |
| Property administration | -34 | -36 | -29 | -34 | -31 | -28 | -35 | -28 |
| Operating surplus | 557 | 537 | 612 | 537 | 509 | 523 | 574 | 570 |
| Income from property management | 467 | 443 | 513 | 443 | 416 | 419 | 477 | 474 |
| Profit for the period | 816 | 1,668 | 673 | 529 | 478 | 694 | 820 | 364 |
| Surplus ratio, % | 70.1 | 69.7 | 75.3 | 72.7 | 69.0 | 69.6 | 74.1 | 74.3 |
| Investment yield, % | 4.4 | 4.4 | 5.2 | 4.6 | 4.4 | 4.5 | 4.9 | 4.9 |
| Equity/assets ratio, % | 43.6 | 42.9 | 41.5 | 40.5 | 41.5 | 41.3 | 38.4 | 37.6 |
| Return on equity, % | 14.6 | 31.6 | 13.5 | 10.7 | 9.7 | 14.6 | 17.9 | 8.0 |
| Earnings per share, SEK | 5.31 | 10.85 | 4.38 | 3.44 | 3.11 | 4.51 | 5.33 | 2.37 |
| Income property management per share, SEK | 3.04 | 2.88 | 3.34 | 2.88 | 2.71 | 2.73 | 3.10 | 3.08 |
| Cash flow fr operating activities per share, SEK | 3.14 | 3.63 | 2.93 | 2.40 | 2.04 | 3.11 | 3.08 | 3.11 |
| EPRA NRV per share, SEK | 177.04 | 172.65 | 159.68 | 154.48 | 155.59 | 152.44 | 147.63 | 142.19 |
| Share price as % of EPRA NRV | 111.4 | 119.0 | 109.2 | 120.2 | 106.5 | 121.6 | 120.2 | 107.3 |
| Carrying amount of properties | 50,618 | 50,033 | 47,741 | 47,056 | 46,687 | 46,072 | 47,041 | 46,392 |
| Equity | 22,769 | 21,948 | 20,278 | 19,600 | 19,887 | 19,396 | 18,729 | 17,907 |
| Total assets | 52,168 | 51,152 | 48,832 | 48,411 | 47,964 | 46,961 | 48,762 | 47,616 |
Definitions of key ratios are available on page 23.
Consolidated segment reporting January–March
| Property management | Malmö | Helsingborg | Lund | Copenhagen | Total | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| SEK m | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 |
| Rental income | 287 | 268 | 195 | 182 | 142 | 132 | 171 | 156 | 795 | 738 |
| Property costs | -72 | -75 | -57 | -59 | -42 | -43 | -66 | -52 | -238 | -229 |
| Operating surplus | 215 | 194 | 138 | 124 | 100 | 89 | 105 | 104 | 557 | 509 |
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 2021 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 557 million (509) and the pre-tax profit of SEK 1,028 million (587) consists of central administration SEK -22 million (-21), financial net SEK -70 million (-73), share in results SEK 2 million (1) and changes in value of properties and derivatives SEK 561 million (171).
| Parent company's income statement summary | |||||
|---|---|---|---|---|---|
| SEK m | Jan–Mar 2022 | Jan-Mar 2021 | Jan-Dec 2021 | ||
| Income | 53 | 56 | 223 | ||
| Expenses | -52 | -53 | -206 | ||
| Operating profits | 1 | 3 | 17 | ||
| Financial income | 421 | 78 | 1,189 | ||
| Financial expenses | -112 | -31 | -365 | ||
| Pre-tax profit | 310 | 50 | 841 | ||
| Appropriations | – | – | 216 | ||
| Tax | -71 | -48 | -80 | ||
| Profit for the period | 239 | 2 | 977 |
| Parent company's balance sheet summary | |||||
|---|---|---|---|---|---|
| SEK m | 2022-03-31 | 2021-03-31 | 2021-12-31 | ||
| Participations in Group companies | 9,431 | 9,506 | 9,431 | ||
| Receivables fr Group companies | 15,662 | 14,184 | 15,791 | ||
| Derivatives | 374 | 65 | 94 | ||
| Other assets | 272 | 329 | 316 | ||
| Cash and bank balances | 198 | 232 | 173 | ||
| Total assets | 25,937 | 24,316 | 25,805 | ||
| Equity | 6,984 | 6,578 | 6,745 | ||
| Liabilities to credit institutions | 16,597 | 14,810 | 16,403 | ||
| Derivatives | 0 | 149 | 63 | ||
| Liabilities to Group companies | 2,209 | 2,683 | 2,512 | ||
| Other liabilities | 147 | 96 | 82 | ||
| Total equity and liabilities | 25,937 | 24,316 | 25,805 |
| Key figures for the group | ||||
|---|---|---|---|---|
| SEK m | Jan-Mar | Jan-Mar | Apr-Mar | Jan-Dec |
| 2022 | 2021 | 2021/2022 | 2021 | |
| Financial | ||||
| Return on equity, % | 14.6 | 9.7 | 17.3 | 16.2 |
| Return on total capital, % | 6.6 | 5.4 | 10.0 | 9.8 |
| Equity/assets ratio, % | 43.6 | 41.5 | 43.6 | 42.9 |
| Interest coverage ratio, multiple | 7.3 | 6.4 | 7.0 | 6.7 |
| Leverage properties, % | 45.8 | 48.4 | 45.8 | 46.5 |
| Debt/equity ratio, multiple | 1.0 | 1.1 | 1.0 | 1.1 |
| Share-related | ||||
| Earnings per share, SEK | 5.31 | 3.11 | 23.98 | 21.78 |
| Earnings per share before tax, SEK | 6.69 | 3.82 | 30.00 | 27.13 |
| EPRA EPS, SEK | 2.70 | 2.43 | 10.92 | 10.65 |
| Cash flow from operations per share, SEK | 3.14 | 2.04 | 12.10 | 10.99 |
| EPRA NDV (net disposal value) per share, SEK | 148.13 | 129.38 | 148.13 | 142.79 |
| EPRA NRV (net reinstatement value) per share, SEK | 177.04 | 155.59 | 177.04 | 172.65 |
| Market value per share, SEK | 197.30 | 165.70 | 197.30 | 205.40 |
| Proposed dividend per share, SEK | - | - | - | 6.00 |
| Dividend yield, %1 | - | - | - | 2.9 |
| Total return from share, % | - | - | - | 13.6 |
| P/E-ratio I, multiple | 9.3 | 13.3 | 8.2 | 9.4 |
| P/E-ratio II, multiple | 18.3 | 17.0 | 18.1 | 19.3 |
| Number of shares at the end of period, thousands | 153,713 | 153,713 | 153,713 | 153,713 |
| Average number of shares, thousands | 153,713 | 153,713 | 153,713 | 153,713 |
| Property-related | ||||
| Number of properties | 298 | 295 | 298 | 299 |
| Carrying amount of properties, SEK m | 50,618 | 46,687 | 50,618 | 50,033 |
| Estimated investment yield, % – all properties | 4.5 | 4.6 | 4.5 | 4.8 |
| Estimated direct return, % – excl project properties | 4.8 | 4.8 | 4.8 | 5.1 |
| Lettable area, m2 | 2,142,915 | 2,112,291 | 2,142,915 | 2,142,892 |
| Rental income, SEK per m2 | 1,617 | 1,555 | 1,617 | 1,620 |
| Operating surplus, SEK per m2 | 1,062 | 1,012 | 1,062 | 1,048 |
| Financial occupancy rate, % – all properties | 91 | 90 | 91 | 90 |
| Financial occupancy rate, % – excl project properties | 92 | 90 | 92 | 92 |
| Estimated surplus ratio, % | 72 | 72 | 72 | 72 |
| Employees | ||||
| Number of FTEs at period end | 255 | 237 | 255 | 250 |
Key figures & definitions
Basis for key ratios
The basis for key financial ratios that Wihlborgs present in the Interim report January-March 2022, are shown below. The following financial targets have been established by the Board:
- A return on equity that exceeds the risk-free interest rate* by not less than six percentage points, which for the beginning of 2022 corresponds to 6.12 percent
- The loan-to-value ratio is not to exceed 60 percent
- An equity/assets ratio of no less than 30 percent
- An interest coverage ratio of no less than 2.0
*) Risk-free interest rate is defined as the rate on a 5-year Swedish government bond.
| Unless otherwise stated, amounts are in SEK million. | 2022-03-31 | 2021-03-31 | 2021-12-31 |
|---|---|---|---|
| Return on equity | |||
| Profit for the period | 816 | 478 | 3,348 |
| Annualized | 3,264 | 1,912 | 3,348 |
| Equity, opening balance | 21,948 | 19,396 | 19,396 |
| Equity, closing balance | 22,769 | 19,887 | 21,948 |
| Average equity | 22,359 | 19,642 | 20,672 |
| Return on equity, % | 14.6 | 9.7 | 16.2 |
| Return on capital employed | |||
| Profit before tax | 1,028 | 587 | 4,170 |
| Interest expense (incl value changes interest derivatives) | -267 | -21 | 110 |
| Total | 761 | 566 | 4,280 |
| Annualized | 3,044 | 2,264 | 4,280 |
| Total assets, opening balance | 51,152 | 46,961 | 46,961 |
| Total assets, closing balance | 52,168 | 47,964 | 51,152 |
| Non-interest bearing debt, opening balance | -5,670 | -5,198 | -5,198 |
| Non-interest bearing debt, closing balance | -5,704 | -5,302 | -5,670 |
| Average capital employed | 45,973 | 42,212 | 43,623 |
| Return on capital employed, % | 6.6 | 5.4 | 9.8 |
| Equity/assets ratio | |||
| Equity | 22,769 | 19,887 | 21,948 |
| Total assets | 52,168 | 47,964 | 51,152 |
| Equity/assets ratio, % | 43.6 | 41.5 | 42.9 |
| Interest coverage ratio | |||
| Income from property management | 467 | 416 | 1,815 |
| Interest expense | 74 | 77 | 316 |
| Total | 541 | 493 | 2,131 |
| Interest expense | 74 | 77 | 316 |
| Interest coverage ratio, multiple | 7.3 | 6.4 | 6.7 |
| Leverage properties | |||
| Borrowings | 23,162 | 22,613 | 23,278 |
| Net value investement properties | 50,618 | 46,687 | 50,033 |
| Leverage properties, % | 45.8 | 48.4 | 46.5 |
| Debt/equity ratio | |||
| Interest-bearing liabilities | 23,320 | 22,772 | 23,440 |
| Equity | 22,769 | 19,887 | 21,948 |
| Debt/equity ratio, multiple | 1.0 | 1.1 | 1.1 |
| 2022-03-31 | 2021-03-31 | 2021-12-31 | |
|---|---|---|---|
| Earnings per share | |||
| Profit for the period | 816 | 478 | 3,348 |
| Average number of shares, thousands | 153,713 | 153,713 | 153,713 |
| Earnings per share, SEK | 5.31 | 3.11 | 21.78 |
| Earnings per share before tax | |||
| Profit before tax | 1,028 | 587 | 4,170 |
| Average number of shares, thousands | 153,713 | 153,713 | 153,713 |
| Earnings per share before tax, SEK | 6.69 | 3.82 | 27.13 |
| EPRA EPS | |||
| Income from property management | 467 | 416 | 1,815 |
| Tax depreciation, direct tax deductions etc | -221 | -210 | -967 |
| Taxable income from property management | 246 | 206 | 848 |
| Current tax on the above | -52 | -42 | -178 |
| Income from property management after deduction of current tax | 415 | 374 | 1,637 |
| Average number of shares, thousands | 153,713 | 153,713 | 153,713 |
| EPRA EPS, SEK | 2.70 | 2.43 | 10.65 |
| Operating cash flow per share | |||
| Operating cash flow | 483 | 313 | 1,690 |
| Average number of shares, thousands | 153,713 | 153,713 | 153,713 |
| Operating cash flow per share, SEK | 3.14 | 2.04 | 10.99 |
| EPRA NDV per share | |||
| Equity | 22,769 | 19,887 | 21,948 |
| Number of shares at year end, thousands | 153,713 | 153,713 | 153,713 |
| EPRA NDV per share, SEK | 148.13 | 129.38 | 142.79 |
| EPRA NRV per share | |||
| Equity | 22,769 | 19,887 | 21,948 |
| Deferred tax liability | 4,819 | 3,946 | 4,622 |
| Derivatives | -374 | 84 | -31 |
| Total | 27,214 | 23,917 | 26,539 |
| Average number of shares, thousands | 153,713 | 153,713 | 153,713 |
| EPRA NRV per share, SEK | 177.04 | 155.59 | 172.65 |
| Dividend yield per share | |||
| Proposed dividend, SEK | - | - | 6.00 |
| Market price per share at year end, SEK | - | - | 205.40 |
| Dividend yield per share, % | - | - | 2.9 |
| Total yield per share | |||
| Market price per share at year start, SEK | - | - | 185.40 |
| Market price per share at year end, SEK | - | - | 205.40 |
| Change in market price during the year, SEK | - | - | 20.00 |
| Dividend paid during the year, SEK | - | - | 5.25 |
| Total return per share, % | - | - | 13.6 |
| P/E ratio I | |||
| Market price per share, SEK | 197.30 | 165.70 | 205.40 |
| Earnings per share, SEK | 5.31 | 3.11 | 21.78 |
| Annualized per share, SEK | 21.23 | 12.44 | 21.78 |
| P/E ratio I, multiple | 9.3 | 13.3 | 9.4 |
| P/E ratio II | |||
| Market price per share, SEK | 197.30 | 165.70 | 205.40 |
| EPRA EPS, SEK | 2.70 | 2.43 | 10.65 |
| Annualized per share, SEK | 10.80 | 9.72 | 10.65 |
| P/E ratio II, multiple | 18.3 | 17.0 | 19.3 |
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.
Definitions
Key financial ratios
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 17 In Wihlborgs' Interim Report.
Return on equity
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.
Return on capital employed (ROCE)
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/assets ratio
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.
Interest coverage ratio
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.
Loan-to-value ratio, properties
Borrowings as a percentage of the properties' carrying amounts. The ratio shows the degree of borrowing on the property portfolio.
Debt/equity ratio
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.
Surplus ratio
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.
Investment yield
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.
Share-related key ratios
Earnings per share for the period Earnings for the period divided by the average number of shares outstanding. Definition according to IFRS.
Earnings per share before tax
Earnings per share before tax divided by the average number of shares outstanding.
EPRA EPS
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 per share Cash flows from operating activities divided by the average number of shares outstanding.
EPRA NDV - Net disposal value, per share The closing balances for equity divided by the number of shares at the end of the period.
EPRA NRV - Net reinstatement value, per share
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.
Dividend yield per share
Proposed dividend as a percentage of the year-end share price.
Total yield per share
Share price performance plus actual dividend relative to the share price at the start of the year.
P/E ratio I, multiple
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.
P/E ratio II, multiple
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.
Average fixed interest period
Time remaining until the interest on all interest bearing debts in average has been adjusted.
Average loan maturity
Time remaining until an average of all interest bearing debts has been refinanced.
Property-related key figures*
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 value
Rental income plus estimated market-level rents for unlet space.
Estimated investment yield
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.
Like-for-like
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.
Calendar
| Interim report Jan-June 2022 11 July 2022 | |
|---|---|
| Interim report Jan-Sept 202221 October 2022 | |
| Year-end report 202214 February 2023 |
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.
Press releases Q1 2022
| Wihlborgs Annual Report and Sustainability Report 2021 31 March 2022 | |
|---|---|
| Avensia opens offices in a third Wihlborgs' property 31 March 2022 | |
| Wihlborgs' Space the first construction start in Science Village23 March 2022 | |
| Notice of the Annual General Meeting in Wihlborgs Fastigheter AB 22 March 2022 | |
| Wihlborgs and Herlev Municipality to collaborate on a new preschool10 March 2022 | |
| Wihlborgs releases new AI report about tomorrow's office – expectations rising 9 March 2022 | |
| The Nomination Committee's proposal regarding the Board of Directors 4 March 2022 | |
| Wihlborgs updates prospectus for MTN-program 28 February 2022 | |
| 2021 Year-end report: Record net lettings for Wihlborgs 15 February 2022 | |
| Wihlborgs' 2021 year-end report will be presented on 15 February 202211 February 2022 | |
| Wihlborgs signs lease with Länsförsäkringar Skåne at Ideon in Lund26 January 2022 | |
| Trygg-Hansa leases 12,000 m2 in Wihlborgs' office building Kvartetten in Hyllie18 January 2022 |
|
| Wihlborgs builds new premises for Doka Sweden in Helsingborg17 January 2022 | |
| Wihlborgs signs lease with Element Logic at Ideon in Lund13 January 2022 |
Contact
Ulrika Hallengren, CEO +46 (0)40-690 57 95, [email protected] Arvid Liepe, CFO +46 (0)40-690 57 31, [email protected]
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 above on 26 April 2022 at 07.30 CEST.
Welcome to us.
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.
Malmö – Headquarters Wihlborgs Fastigheter AB Box 97, SE-201 20 Malmö Visitors: Stora Varvsgatan 11A Tel: +46 40 690 57 00
24 Wihlborgs Interim report January-March 2022
Helsingborg
Wihlborgs Fastigheter AB Terminalgatan 1 SE-252 78 Helsingborg Tel: +46 42 490 46 00
Lund
Wihlborgs Fastigheter AB Ideon Science Park Scheelevägen 17 SE-223 70 Lund Tel: +46 46 590 62 00
Danmark
Wihlborgs A/S Mileparken 22A DK-2740 Skovlunde, Denmark Tel: +45 396 161 57