Quarterly Report • Jul 12, 2021
Quarterly Report
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January–June
Rental income amounted to SEK 1,477 million (1,548)
Operating surplus amounted to SEK 1,046 million (1,125)
Income from property management amounted to SEK 859 million (934)
Result for the period amounted to SEK 1,007 million (708), corresponding to earnings per share of SEK 6.55 (4.61)
EPRA NAV increased by 5 percent* to SEK 154.48 (152.44)
*Paid divident of SEK 2.25 has been taken into account
We aren't afraid of change. 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.
Specialising in efficient sub-markets in the Öresund region, Wihlborgs will develop and own commercial properties, as well as manage them in-house.
Our business model consists of two elements: property management and project development. 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.
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.
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. This is our property company – Wihlborgs. The region-builder and relations-builder. The book value of the company's properties totals SEK 47.1 billion, representing an annual rental value of SEK 3.3 billion. Wihlborgs' shares are listed on the Large Cap List of Nasdaq Stockholm.
Property value
Rental income
Income property management
SEK million
| Group key figures, SEK m | 2021 | 2020 |
|---|---|---|
| Jan-June | Jan-June | |
| Rental income | 1,477 | 1,548 |
| Operating surplus | 1,046 | 1,125 |
| Income property management | 859 | 934 |
| Changes in value of properties | 284 | 87 |
| Changes in value of derivatives | 113 | -116 |
| Result for the period | 1,007 | 708 |
| Earnings per share, SEK | 6.55 | 4.61 |
| Surplus ratio, % | 71 | 73 |
| Equity/assets ratio, % | 40.5 | 37.6 |
| Occupancy rate, %* | 91 | 92 |
| EPRA NRV per share, SEK | 154.48 | 142.19 |
*) Excluding Projects & Land.
| Mål | Outcome Q2 2021 |
|---|---|
| A return on equity that exceeds the risk-free interest rate by not less than six percentage points, which for the beginning of 2021 corresponds to 5.78 percent |
10.3 |
| An equity/assets ratio of no less than 30 percent | 40.5 |
| An interest coverage ratio of no less than 2.0 | 6.5 |
| The loan-to-value ratio is not to exceed 60 percent | 49.6 |
We have noted high activity among existing, new and potential tenants. A financial recovery and confidence in the future gathered momentum in our region during the spring. We have noted clear effects of this in our new lettings, which have been at a historically high level during the quarter. It is clear that activity has been elevated on a broad front. Once again, this is the result of the increasing needs of many tenants, who form the basis of the strong lettings. We have equipped ourselves to be ready for when customers indicate changed requirements, and this can now be summarised with positive net lettings of SEK 36 million during the quarter.
New agreements and project start for Space in Lund We are pleased to have signed the first agreement for Kvartetten in Hyllie with Mindpark, which will operate its co-working business in 800 m². This will play a key role in the office experience and provide other tenants in the building with an extra service that we know will be appreciated. In Lund, we have signed an agreement for over 3,000 m² of office and laboratory operations in our Space project in the Science Village area. Space comprises some 6,000 m² and we are happy that we can now set this innovation hub in motion right between the MaxIV and ESS research facilities. We note a growing interest for establishing at Ideon and in north Lund. With proximity to expertise and other technology companies, an engineering cluster that is highly attractive is being created here. An example of this is the establishment of Regin's new innovation centre in our Node office building (Nya Vattentornet 2).
We have continued to note high activity after the end of the quarter. At Ideon, a public sector tenant has signed an agreement for 4,200 m² in the Cube property (Nya Vattentornet 4), and in Helsingborg, we won a procurement for Region Skåne's Child and Adolescent psychiatry for 2,500 m² at Hermes 10. Demand from the public sector remains healthy, with public-sector tenants currently comprising eight of Wihlborgs' ten largest tenants.
While we are happy about the new agreements, we can also note that the pandemic has continued to impact earnings during the second quarter. Our parking and service income is lower than normal given the continued lower physical presence in the office in 2021, and even if vacancies have fallen somewhat, they are still at a higher level than what we are striving for in the long term. Efforts to develop and improve the content and quality of our property portfolio are continuing. In light of the signed agreements, we are expecting vacancies to fall during the coming quarter, and anticipate the largest effect in 2022.
Changes in value of our properties have amounted to SEK 210 million for the quarter. The increase is equally a result of an expected increase in cash flows and lower investment yield requirements for certain properties.
Long-term and sustained investments in sustainability Sustainability is an area of the utmost priority for many property companies, and of course, this is also the case
A financial recovery and confidence in the future gathered momentum in our region during the spring."
for Wihlborgs. We have been environmentally certifying all new production for many years, but we are now in full swing with certifying our existing portfolio. In the first half of the year, we certified five properties in accordance with Miljöbyggnad iDrift and a further ten certifications are in the final stages of completion. In parallel with our certification efforts, we are committed to 15 major energy efficiency projects in our properties. In addition, four solar power systems are currently being installed, and an additional five are in starting phases. The facilities will contribute to compensating for the climate burden that comes with new production. Scope 3 CO2 impact is and will remain the industry's greatest challenge for a long time. As a result, we are now placing particular focus to reduce the use of materials and to use the right materials. We continue to maintain that long-term flexibility is the most sustainable strategy. Buildings should be able to be converted and used in different ways over time. Making use of what has already been constructed will always be the most sustainable approach, even if this is yet to be reflected by any certification system. We are convinced that these initiatives, when taken together, will truly make the difference.
One year ago, we found ourselves in a situation of great uncertainty due to the scope of the pandemic. Even if it is not possible to say that the danger is behind us, we can note that we have a better image of our wider community today, both in terms of health and financial prospects. Our ambition is to continue to build our region in close collaboration with businesses, organisations and the public sector. The economy of the Öresund region has coped with the pandemic better than other major metropolitan regions in Sweden. The increase in activity that we are now seeing indicates the continued potential of the region. This provides us with opportunities to start new projects, and our solid balance sheet will enable us to, together with our tenants, build the Öresund region into something even stronger.
Ulrika Hallengren, CEO
The Swedish economy has demonstrated strong resilience throughout the pandemic, despite a somewhat slower rate of vaccination than was first announced in the government's vaccine strategy. Strong growth in the US is driving the Swedish export sector and the OECD's May forecast estimates Sweden's GDP to grow 3.9% in 2021 and 3.4% in 2022. The manufacturing industry has recovered very well, but the pandemic is still holding back the service sector. In Denmark, growth of 2.8% is forecast for 2021 and 2.9% for 2022, with Denmark's specialisation in green energy and pharmaceuticals expected to drive the recovery. The Ministry of Finance's June forecast adjusted Sweden's GDP growth to 4.7% for 2021, up 1.5 percentage points on the April forecast.
The Swedish National Institute of Economic Research's Economic Sentiment Indicator reported a level of 119.3 in May. This is the highest figure in the indicator's 25-year history and the increase was largely due to high levels of activity in the manufacturing industry. The household confidence indicator accounts for the largest increase and is at a level not seen since 2010.
According to Sparbanken Skåne's "Skånsk konjunktur" ("Business in Skåne") report, published by Øresundsinstituttet (the Öresund Institute), the economy in Skåne performed better than other major metropolitan areas during the pandemic. Unlike the 2008–2009 financial crisis, Skåne's multifaceted region and diversified economy spread risks in a time when mobility was limited. Summarizing 2020, Skåne had 1.2% more employment in the fourth quarter of 2020 than in 2019. In Stockholm and Västra Götaland counties, this figure decreased 1.8% and 2.8%, respectively. Sales in the Skåne economy decreased 0.5%, which was better than the decline of 3.0% in Stockholm or 4.7% in Västra Götaland. Notice given, employment, furloughs and tourism all performed better than other major metropolitan areas. Economic growth in Skåne is split, however. Lund was relatively untouched, with its large share of public sector and low unemployment that soon returned to its pre-pandemic levels. But in Malmö, unemployment was and remains high, with an increase in unemployment among young people. Malmö has more exposure to tourism and in 2020 one million bookings disappeared, a decrease of 50% from the previous year. In Helsingborg, growth is somewhat split. Areas around the city, which are exposed to the manufacturing industry, performed well, while the situation was tougher in the trade city of Helsingborg.
The transaction year of 2021 started off strong, dominated by larger portfolio transactions. Pangea reported sales of SEK 84.3 billion during the first five months, compared with SEK 47.6 billion for 2020. The office market in Malmö showed stability in terms of top office rents and dividend yield requirements in the Swedish Property Research Forum's Q2 forecast. Uncertainty surrounding the future of the office and how it will affect demand means that the office property share of the high transaction volume remains at historically low levels.
Comparative figures for income statement items relate to values for the corresponding period 2020 and balance sheet items as of 31-12-2020.
Rental income amounted to SEK 1,477 million (1,548), corresponding to a decline of 5 percent. Service income accounted for SEK 139 million (157) of rental income. Acquisitions and sales of properties had a negative impact of SEK 45 million (+ 3). Vacancies were SEK 39 million higher during the period compared with the year-earlier period. SEK 3 million (12) of income comprised supplementary billing as final settlement for costs in 2020. Discounts granted to tenants due to the ongoing Covid-19 situation had a negative impact of SEK 5 million (11) on net rental income after taking into account expected state subsidy of SEK 2 million (3). Currency effects amounted to SEK -15 million (5) for the period. The additional increase in income of 3 percent arose as a result of completed projects, renegotiations, new lettings and the indexation of contracts.
At the end of the period the occupancy rate for investment properties, excluding Projects & Land, is 91 percent which is unchanged compared with year-end.
During the period new leases were signed to a value of SEK 142 million (110) on an annualized basis. Lease termi-
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Rental income from ten largest tenants
Rental income from governmental tenants
nations totalled SEK 97 million (98). This represents a net letting of SEK 45 million (12).
Total property expenses amounted to SEK 431 million (423). Bad debt losses was SEK 1 million (4) during the period. The increase in property expenses is primarily due to increased costs for heating and snow removal. The historical summary at the bottom of page 17 illustrates how costs vary over the different quarters of the year.
The operating surplus amounted to SEK 1,046 million (1,125) representing a surplus ratio of 71 percent (73). Of the change, SEK -32 million (-4) was attributable to property acquisitions and divestments, in addition, currency effects have affected by SEK -10 million (3).
The costs for central administration were SEK 40 million (38).
Net interest totalled SEK -148 million (-154), of which interest income accounted for SEK 6 million (7).
The interest expense for the period, incl. realized effects from interest rate derivatives, was SEK 154 million (161). Leasehold rent amounted to SEK 2 million (3). Interest expense relating to interest rate derivatives amounted to
SEK 30 million (14). At the end of the period, the average interest rate, including the cost of credit agreements, was 1.32 percent, compared with 1.38 percent at year-end.
Profit participation in joint ventures amounted to SEK 3 million (4). Income from property management amounted to SEK 859 million (934).
The pre-tax profit, i.e. after value changes on properties and derivatives, was SEK 1,256 million (905). During the period, value changes on properties amounted to SEK 284 million (87). Value changes on derivatives amounted to SEK 113 million (-116) of which SEK 119 million (–113) are attributable to interest rate derivates and -6 million (-3) to other financial items.
The profit after taxes was SEK 1,007 million (708). Total tax amounted to SEK 249 million (197), of which current tax SEK 22 million (21) and deferred tax SEK 227 million (176).
During the spring and early summer, all of our employees attended an internal training session on work environment and employee responsibility. The training made it possible to meet, albeit digitally, and discuss questions and situations that employees can face or end up in. It was precisely these concrete small-group discussions that were appreciated the most. As one employee summarised it: "The best part was the group discussions, where you could provide your own perspectives and hear your colleagues' thoughts. It allowed for reflection and a good discussion."
The summaries below are based on Wihlborgs' property portfolio as of 30 June 2021. Rental income relates to contracted rental income on an annual basis as of 1 July 2021.
The operating surplus is based on the properties' earning capacity on an annual basis based on rental income for July 2021, 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 30 June 2021 consisted of 296 properties (294) with a lettable area of 2,119,000 m2 (2,103,000). 7 of the properties (7) are leasehold rights.
The properties' carrying amount was SEK 47,056 million (46,072), which corresponds to the estimated market value. The total rental value was SEK 3,287 million (3,268) and the contracted rental income on annual basis SEK 2,968 million (2,946). The like-for-like increase in rental value was 0,3 percent while contracted rental income decreased by 0,9 percent compared to 12 months previously.
The economic occupancy rate for Office/Retail properties was 91 percent (90) and for Logistics/Production properties 92 percent (92). 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 2,272 million (2,253) which with a carrying amount of SEK 45,222 million (44,169) corresponds to a yield of 5.0 percent (5.1). Broken down by property category, this is 4.8 percent (4.9) for Office/Retail and 6.5 percent (6.8) for Logistics/Production.
Raffinaderiet 3 is a historic listed property in a prime location near Lund Central Station. Sustainable reuse and redevelopment with respect has enabled retention of the old sugar refinery's original industrial identity at the same time as we create modern, functional offices. We have signed leases here with four new tenants, who will move in by the end of 2022.
By year-end the valuation of all Wihlborgs' properties is carried out by external valuers. The valuation as of 30 June 2021 has been made internally and resulted in a value increase at SEK 284 million (87).
Lower yield requirements and increased expected operating results due to net lettings have affected valuation largely to the same extent.
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 yield-based method. The value is considered to correspond to the yield value that is calculated from normally fiveyear 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 2020 Annual Report.
As of 30 june 2021 the carrying amount for the properties is SEK 47,056 million (46,072).
| Changes in carrying amount of properties | ||||||
|---|---|---|---|---|---|---|
| Changes | Group total, SEK m |
|||||
| Carrying amount 1 January 2021 | 46,072 | |||||
| Acquisitions | 182 | |||||
| Investments | 453 | |||||
| Properties sold | 0 | |||||
| Change in value | 284 | |||||
| Currency translations | 65 | |||||
| Carrying amount 30 June 2021 | 47,056 |
Investments in the property portfolio totalled SEK 453 million (585).
Approved investments in ongoing projects amount to SEK 1,956 million, of which 470 million had been invested at the end of period.
The Groups liquid assets totalled SEK 839 million (607) including unutilized overdraft facilities. At the end of the period unutilized credit facilities amounted to SEK 3,370 million (3,656).
Of the rent that fell due for payment (excluding granted deferrals) on the last day of June, 92 percent has been paid as of the date of publishing this report, which is in line with the average over the last ten quarters.
| Investments in progress >SEK 50 million, 30 June 2021 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Property | Category of use |
Municipality | Completion date |
Lettable area, m2 |
Occupancy rate, % |
Estimated investment, SEK m |
Expended 30-06-2021, SEK m |
|||
| Kranen 2 a | Office/Retail | Malmö | Q4 2021 | 3,700 | 100 | 137 | 102 | |||
| Kranen 2 b | Office/Retail | Malmö | Q4 2021 | 4,400 | 100 | 100 | 48 | |||
| Raffinaderiet 3 | Office/Retail | Lund | Q2 2022 | 5,800 | 30 | 114 | 17 | |||
| Hindbygården 7 | Office/Retail | Malmö | Q3 2022 | 1,800 | 100 | 59 | 4 | |||
| Huggjärnet 13 | Logistics/Production | Helsingborg | Q4 2022 | 8,000 | 0 | 108 | 1 | |||
| Pulpeten 5 | Office/Retail | Malmö | Q2 2023 | 16,000 | 5 | 696 | 47 | |||
| Kunskapen 1 | Office/Retail | Lund | Q3 2023 | 6,000 | 50 | 244 | 9 | |||
| Summa | 45,700 | 1,458 | 228 |
| Share, % | 57 | 6 | 28 | 4 | 5 | ||
|---|---|---|---|---|---|---|---|
| Total | 1,203,990 | 125,334 | 581,878 | 89,240 | 118,060 | 2,118,502 | 100 |
| Köpenhamn | 445,174 | 7,435 | 92,855 | 11,760 | 79,003 4 |
636,227 | 30 |
| Lund | 199,714 | 14,656 | 35,736 | 4,429 | 9,224 3 |
263,759 | 13 |
| Helsingborg | 217,388 | 59,448 | 286,892 | 40,495 | 14,103 2 |
618,326 | 29 |
| Malmö | 341,714 | 43,795 | 166,395 | 32,556 | 15,730 1 |
600,190 | 28 |
| m2 | m2 | Production, m2 | Health care, m2 | m2 | m2 | % | |
| Area | Office, | Retail, | Logistics/ | Education/ | Misc., | Total, | Share, |
1) Includes 10,275 m2 hotel.
2) Includes 1,819 m2 residential.
3) Includes 8,215 m2 hotel.
4) Includes 38,848 m2 data center and 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 ad min., SEK m |
Surplus ratio, % |
Operating surplus excl. property ad min., SEK m |
Yield excl property admin., % |
| Malmö | |||||||||||
| Office/Retail | 49 | 439 | 16,802 | 1,013 | 2,308 | 93 | 946 | 719 | 76 | 754 | 4.5 |
| Logistics/Production | 30 | 141 | 1,876 | 145 | 1,029 | 97 | 141 | 111 | 79 | 119 | 6.3 |
| Projects & Land | 21 | 20 | 989 | 16 | 803 | - | 8 | -1 | - | 2 | - |
| Total Malmö | 100 | 600 | 19,667 | 1,174 | 1,956 | 93 | 1,095 | 829 | 76 | 875 | 4.5 |
| Helsingborg | |||||||||||
| Office/Retail | 36 | 260 | 7,262 | 509 | 1,960 | 88 | 447 | 337 | 75 | 353 | 4.9 |
| Logistics/Production | 58 | 359 | 3,193 | 318 | 888 | 88 | 281 | 199 | 71 | 217 | 6.8 |
| Projects & Land | 11 | - | 320 | - | - | - | - | - | - | - | - |
| Total Helsingborg | 105 | 618 | 10,775 | 828 | 1,338 | 88 | 728 | 536 | 74 | 570 | 5.3 |
| Lund | |||||||||||
| Office/Retail | 25 | 241 | 7,542 | 567 | 2,353 | 87 | 493 | 340 | 69 | 380 | 5.0 |
| Logistics/Production | 4 | 23 | 214 | 19 | 838 | 94 | 18 | 13 | 73 | 14 | 6.8 |
| Projects & Land | 4 | - | 256 | - | 6,767 | - | - | -2 | - | -2 | - |
| Total Lund | 33 | 264 | 8,012 | 586 | 2,223 | 87 | 511 | 350 | 69 | 393 | 4.9 |
| Copenhagen | |||||||||||
| Office/Retail | 47 | 562 | 7,618 | 632 | 1,125 | 92 | 582 | 373 | 64 | 393 | 5.2 |
| Logistics/Production | 9 | 61 | 715 | 55 | 916 | 95 | 53 | 40 | 77 | 41 | 5.8 |
| Projects & Land | 2 | 13 | 269 | 11 | - | - | - | - | - | - | - |
| Total Copenhagen | 58 | 636 | 8,602 | 699 | 1,098 | 91 | 634 | 413 | 65 | 434 | 5.1 |
| Total Wihlborgs | 296 | 2,119 | 47,056 | 3,287 | 1,551 | 90 | 2,968 | 2,129 | 72 | 2,272 | 4.8 |
| Total excluding projects and land |
258 | 2,085 | 45,222 | 3,259 | 1,563 | 91 | 2,960 | 2,133 | 72 | 2,272 | 5.0 |
During the quarter, Wihlborgs aquired the project property Naboland 3 in Malmö. The acquisition provides an opportunity to develop 8,000 m2 offices in the Dockan area.
| Property transactions January–June 2021 | |||||||
|---|---|---|---|---|---|---|---|
| Quarter | Property | Municipality | Management area | Category | Area, m2 |
Price, SEK m |
Operating surplus 2021, SEK m1 |
| Acquisitions | |||||||
| 1 | Industriparken 21 | Ballerup | Copenhagen | 10,200 | |||
| 2 | Naboland 3 | Malmö | Dockan/Hyllie | - | |||
| Total acquisitions 2021 | 10,200 | 182 | 2.4 | ||||
| Sales | |||||||
| 1 | - | - | - | ||||
| Total sales 2021 | 0 | 0 | 0 | ||||
1) Operating surplus from properties acquired and sold that are included in the results for the period.
Wihlborgs is both a region-builder and a relationship-builder. Wihlborgs adopts a long-term perspective when investing and developing operations. The sustainability initiatives are focused on areas in which operations have the greatest impact and thus the best opportunity to contribute to positive development: Responsible business, Sustainable properties, Being an attractive employer and Commitment to the region and its community.
Wihlborgs has established Group targets in all areas, which are followed up annually and reported in the Annual and Sustainability Report. Certifications are an important governance instrument in reducing the climate impact. An increasing number of tenants are also demanding environmentally certified premises as part of their own sustainability agenda. In addition to certifying new-build projects (which are always certified Silver or better according to SGBC 3.0), focus is on existing properties. The new standard Miljöbyggnad iDrift, which Wihlborgs helped develop, will help further improve environmental performance through gradual environmental adaptations and improving property efficiency. This also creates engagement and builds sustainability expertise in the management organisations.
One of the targets is for 80% of the office properties in Sweden to be environmentally certified by the end of 2022. In the long term, the goal is for all of the Wihlborgs property portfolio in Sweden and Denmark to be environmentally certified. The plan is to achieve a certification level of 50% of the lettable area by the end of 2021. During the first half of the year the following properties have been certified:
Skrovet 3, Malmö, 10 310 m² NFA, Miljöbyggnad iDrift level Silver
Spettet 11, Lund, 1 527 m² NFA, Miljöbyggnad iDrift level Silver
* We aim to have 80% of our office properties in Sweden environmentally certified by end of 2022.
** The goal is to achieve a certification level of 50% by end of 2021.
Wihlborgs summarises the results of the sustainability work in an annual sustainability report prepared in accordance with the Global Reporting Initiative (GRI) Standards: core option, the EPRA Sustainability Best Practices Recommendations (sBPR) and the guidelines issued by the Task Force on Climate-related Financial Disclosures (TCFD). Wihlborgs also reports annually to the UN Global Compact and participates in the Global Real Estate Sustainability Benchmark (GRESB) and the CDP Climate Change Questionnaire.
As of 30 June 2021 equity totalled SEK 19,600 million (19,396) after dividend payment of SEK 807 million during the second quarter. The equity/assets ratio stood at 40.5 percent (41.3).
The group's interest-bearing liabilities as of 30 June amounted to SEK 23,346 million (22,208) with an average interest rate including costs for credit agreements of 1.32 percent (1.38).
With consideration to the company's net debt of SEK 23.3 billion, the loan-to-value ratio is 49.6 percent (48.2) as a percentage of property values.
The loans' average fixed interest period including effects of derivatives on 30 June 2021 amounted to 3.2 years (3.6). The average loan maturity, including commited credit facilities, amounted to 6.2 years (6.1).
| Structure of interest and loan maturities as of 30 June 2021 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Interest maturity | Loan maturity | |||||||
| Matures, year |
Loan amount, SEK m |
Av. interest rate, % |
Credit ag., SEK m |
Utilised, SEK m |
||||
| 2021 | 10,115 | 0.98 | 1,310 | 1,310 | ||||
| 2022 | 1,850 | 1.20 | 4,044 | 3,544 | ||||
| 2023 | 2,430 | 1.45 | 4,916 | 4,366 | ||||
| 2024 | 1,788 | 1.47 | 8,050 | 5,730 | ||||
| 2025 | 1,788 | 1.48 | 6 | 6 | ||||
| >2025 | 5,374 | 1.67 | 8,390 | 8,390 | ||||
| Totalt | 23,346 | 1.28* | 26,716 | 23,346 |
*) 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 30 June 2021 | ||||||
|---|---|---|---|---|---|---|
| Interest rate swaps | ||||||
| Maturity | Amount, SEK m | Interest, % | ||||
| 2021 | 1,315 | 0.03 | ||||
| 2022 | 1,630 | 0.16 | ||||
| 2023 | 2,430 | 0.39 | ||||
| 2024 | 1,788 | 0.41 | ||||
| 2025 | 1,788 | 0.42 | ||||
| >2025 | 3,756 | 0.66 | ||||
| Totalt | 12,707 | 0.41 |
The deficit value in Wihlborgs' interest rate derivative portfolio amounted to SEK 64 million (183).
Interest-rate derivatives are recognised at fair value at level 2 in accordance with IFRS 9.
For information on the valuation approach for interest rate derivatives, see page 100 of the 2020 Annual Report.
Construction has started of the building Space, between MAX IV and ESS in northern Lund, next to the new tramway line. It will be a modern innovation hub that will be a natural meeting place in the middle of the new Science Village city district. With the first lease in place, Wihlborgs will now begin contractor procurement. Space will be certified Silver/Gold according to the Sweden Green Building Council (SGBC) and WELL, and is expected to be ready for occupancy in autumn 2023.
At the end of the period, the number of FTEs at Wihlborgs was 244 (236), of which 110 (102) were in property service. Of the total number of FTEs, 73 (77) were in Malmö, 33 (32) in Helsingborg, 31 (31) in Lund and 107 (96) in Copenhagen. The average age of employees is 44 years and women make up 41 percent.
The parent company owns no properties, but deals with questions relating to the stock market and joint Group functions for administration, management and borrowing. The parent company's turnover is mostly related to the billing of services to Group companies.
The parent company has invested SEK 1 million (1), in shares in subsidiaries and other shares, including shareholders' contributions, during the period.
The parent company's income statement and balance sheet are found on page 18.
A description of all participations held by Wihlborgs in other companies will be found on pages 108–109 in the Company's 2020 Annual Report.
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 37 percent. The number of shareholders is approximately 29,000.
| Largest shareholders in Wihlborgs 30 June 2021 | ||||||
|---|---|---|---|---|---|---|
| Number of | Proportion of | |||||
| shares, | equity and | |||||
| thousands | votes, % | |||||
| Erik Paulsson with family, | 16,938 | 11.0 | ||||
| privately and via company | ||||||
| SEB Investment Management | 10,987 | 7.1 | ||||
| Länsförsäkringar funds | 7,081 | 4.6 | ||||
| Swedbank Robur funds | 5,166 | 3.4 | ||||
| Handelsbanken funds | 4,842 | 3.2 | ||||
| Bank of Norway | 3,208 | 2.1 | ||||
| Qviberg family | 2,610 | 1.7 | ||||
| Life insurance company Skandia | 2,015 | 1.3 | ||||
| AMF funds | 1,650 | 1.1 | ||||
| Tibia Konsult AB | 1,513 | 1.0 | ||||
| Other shareholders reg. in Sweden | 43,280 | 28.1 | ||||
| Other shareholders reg. abroad | 54,423 | 35.4 | ||||
| Total outstanding shares | 153,713 | 100.0 |
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.
There is a comprehensive description of the risks facing the Group on pages 84–89 and 101–102 in the Company's 2020 Annual Report.
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.
Discounts provided as a result of Covid-19 are expensed entirely, reduced with state aid received, in the period they relate to. Otherwise 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 2021, 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.
After the end of the quarter, Wihlborgs signed an agreement with a public-sector tenant for 4,200 m² in Nya Vattentornet 4 in Lund. A procurement of 2,500 m² at Hermes 10 in Helsingborg for Region Skåne was also won.
| Anders Jarl | Lennart Mauritzson | Tina Andersson |
|---|---|---|
| Chairman | Deputy Chairman | Board member |
| Amela Hodzic | Jan Litborn | Helen Olausson |
| Board member | Board member | Board member |
| Johan Qviberg Board member |
Ulrika Hallengren CEO |
This interim report has not been reviewed by the company's auditors. The Board of Directors and the CEO offer assurance that the interim report provides a fair summary of the parent company's and the Group's business activities, status and profits, and describes the significant risks and uncertainty factors faced by the parent company and the companies that are part of the Group
| Consolidated income statement summary | ||||||
|---|---|---|---|---|---|---|
| SEK m | 2021 | 2020 | 2021 | 2020 | 2020/2021 | 2020 |
| Apr-Jun | Apr–Jun | Jan–Jun | Jan–Jun | Jul–Jun | jan–dec | |
| 3 months | 3 months | 6 months | 6 months | 12 months | 12 months | |
| Rental income | 739 | 767 | 1,477 | 1,548 | 3,003 | 3,074 |
| Operating costs | -98 | -96 | -225 | -220 | -434 | -429 |
| Repairs and maintenance | -21 | -21 | -43 | -43 | -97 | -97 |
| Property tax | -49 | -52 | -98 | -101 | -201 | -204 |
| Property administration | -34 | -28 | -65 | -59 | -128 | -122 |
| Total propery costs | -202 | -197 | -431 | -423 | -860 | -852 |
| Operating surplus | 537 | 570 | 1,046 | 1,125 | 2,143 | 2,222 |
| Central administration | -19 | -18 | -40 | -38 | -79 | -77 |
| Interest income | 2 | 4 | 6 | 7 | 13 | 14 |
| Interest expense | -78 | -82 | -154 | -161 | -320 | -327 |
| Leasehold rent | -1 | -2 | -2 | -3 | -4 | -5 |
| Share in results of joint ventures | 2 | 2 | 3 | 4 | 2 | 3 |
| Income from property management | 443 | 474 | 859 | 934 | 1,755 | 1,830 |
| Change in value of properties | 210 | 28 | 284 | 87 | 1,023 | 826 |
| Change in value of derivatives | 16 | -24 | 113 | -116 | 156 | -73 |
| Pre-tax profit | 669 | 478 | 1,256 | 905 | 2,934 | 2,583 |
| Current tax | -11 | -11 | -22 | -21 | -47 | -46 |
| Deferred tax | -129 | -103 | -227 | -176 | -366 | -315 |
| Profit for the period1 | 529 | 364 | 1,007 | 708 | 2,521 | 2,222 |
| OTHER TOTAL PROFIT/LOSS | ||||||
| Items that will be reclassified to profit or loss for the year: |
||||||
| Translation differences on recalculation of foreign | ||||||
| operations | -42 | -176 | 26 | 23 | -118 | -121 |
| Hedging of currency risk in foreign operations | 40 | 150 | -27 | -24 | 119 | 122 |
| Tax attributable to items that will be reclassified to | ||||||
| profit or loss for the year | -7 | -25 | 5 | 4 | -21 | -22 |
| Other comprehensive income for the period | -9 | -51 | 4 | 3 | -20 | -21 |
| Total comprehensive income for the period1 | 520 | 313 | 1,011 | 711 | 2,501 | 2,201 |
| Earnings per share2 | 3.44 | 2.37 | 6.55 | 4.61 | 16.40 | 14.46 |
| No. of shares at end of the period, thousands | 153,713 | 153,713 | 153,713 | 153,713 | 153,713 | 153,713 |
| Average no. of shares, thousands | 153,713 | 153,713 | 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 balance sheet summary | |||
|---|---|---|---|
| SEK m | 30-06-2021 | 30-06-2020 | 31-12-2020 |
| ASSETS | |||
| Investment properties | 47,056 | 46,392 | 46,072 |
| Right-of-use assets | 152 | 168 | 149 |
| Other fixed assets | 399 | 390 | 385 |
| Derivatives | 67 | - | - |
| Current receivables | 241 | 249 | 150 |
| Liquid assets | 496 | 417 | 205 |
| Total assets | 48,411 | 47,616 | 46,961 |
| EQUITY AND LIABILITIES | |||
| Equity | 19,600 | 17,907 | 19,396 |
| Deferred tax liability | 4,081 | 3,756 | 3,853 |
| Borrowings | 23,346 | 24,350 | 22,208 |
| Lease liability | 151 | 167 | 147 |
| Derivatives | 131 | 193 | 183 |
| Other long-term liabilities | 58 | 71 | 64 |
| Current liabilities | 1,044 | 1,172 | 1,110 |
| Total equity & liabilities | 48,411 | 47,616 | 46,961 |
| Consolidated statement of changes in equity | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| SEK m | Jan-June 2021 | Jan-June 2020 | Jan–Dec 2020 | ||||||
| Total equity at beginning of period | 19,396 | 17,887 | 17,887 | ||||||
| Equity attributable to parent company's shareholders | |||||||||
| Opening amount | 19,396 | 17,887 | 17,887 | ||||||
| Dividend paid | -807 | -692 | -692 | ||||||
| Profit for the period | 1,007 | 708 | 2,222 | ||||||
| Other comprehensive income | 4 | 3 | -21 | ||||||
| Closing amount | 19,600 | 17,907 | 19,396 | ||||||
| Equity attributable to minority shares with non-controlling interests | - | - | - | ||||||
| Total equity at end of period | 19,600 | 17,907 | 19,396 |
| Consolidated cash flow statement summary | |||||
|---|---|---|---|---|---|
| SEK m | Apr-June 2021 | Apr-June 2020 | Jan-June 2021 | Jan-June 2020 | Jan-Dec 2020 |
| Operating activities | |||||
| Operating surplus | 537 | 570 | 1,046 | 1,125 | 2,222 |
| Central administration | -19 | -18 | -40 | -38 | -77 |
| Non-cash items | 4 | -11 | 10 | -5 | 18 |
| Interest received | 0 | 2 | 1 | 2 | 4 |
| Interest paid | -74 | -87 | -154 | -171 | -338 |
| Income tax paid | -1 | -3 | -9 | -5 | -66 |
| Change in other working capital | -78 | 25 | -172 | -22 | 68 |
| Cash flow from operating activities | 369 | 478 | 682 | 886 | 1,831 |
| Investment activities | |||||
| Acquisitions of properties | -17 | - | -182 | -140 | -327 |
| Investments in existing properties | -245 | -248 | -453 | -585 | -1,231 |
| Sales of properties | - | - | - | - | 1,486 |
| Change in other non-current assets | -15 | 7 | -16 | 7 | -14 |
| Cash flow from investment activities | -277 | -241 | -651 | -718 | -86 |
| Financing activities | |||||
| Dividend paid | -807 | -691 | -807 | -691 | -692 |
| Change in borrowing | 2,311 | 2,292 | 3,891 | 3,618 | 10,520 |
| Loan repayments | -1,486 | -1,811 | -2,820 | -2,954 | -11,640 |
| Change in other long-term liabilities | 4 | -1 | -4 | -4 | -8 |
| Cash flow from financing activities | 22 | -211 | 260 | -31 | -1,820 |
| Cash flow for the period | 114 | 26 | 291 | 137 | -75 |
| Opening cash flow | 382 | 391 | 205 | 280 | 280 |
| Closing cash flow | 496 | 417 | 496 | 417 | 205 |
| Historical summary of last eight quarters | ||||||||
|---|---|---|---|---|---|---|---|---|
| SEK m | Q2 2021 | Q1 2021 | Q4 2020 | Q3 2020 | Q2 2020 | Q1 2020 | Q4 2019 | Q3 2019 |
| Rental income | 739 | 738 | 751 | 775 | 767 | 781 | 765 | 743 |
| Operating costs | -98 | -127 | -121 | -88 | -96 | -124 | -120 | -87 |
| Repairs and maintenance | -21 | -22 | -30 | -24 | -21 | -22 | -35 | -19 |
| Property tax | -49 | -49 | -49 | -54 | -52 | -49 | -51 | -54 |
| Property administration | -34 | -31 | -28 | -35 | -28 | -31 | -34 | -31 |
| Operating surplus | 537 | 509 | 523 | 574 | 570 | 555 | 525 | 552 |
| Income from property management | 443 | 416 | 419 | 477 | 474 | 460 | 456 | 446 |
| Profit for the period | 529 | 478 | 694 | 820 | 364 | 344 | 1,546 | 450 |
| Surplus ratio, % | 72.7 | 69.0 | 69.6 | 74.1 | 74.3 | 71.1 | 68.6 | 74.3 |
| Investment yield, % | 4.6 | 4.4 | 4.5 | 4.9 | 4.9 | 4.8 | 4.6 | 4.9 |
| Equity/assets ratio, % | 40.5 | 41.5 | 41.3 | 38.4 | 37.6 | 38.3 | 38.4 | 35.3 |
| Return on equity, % | 10.7 | 9.7 | 14.6 | 17.9 | 8.0 | 7.6 | 36.1 | 11.2 |
| Earnings per share, SEK | 3.44 | 3.11 | 4.51 | 5.33 | 2.37 | 2.24 | 10.06 | 2.93 |
| Income property management per share, SEK | 2.88 | 2.71 | 2.73 | 3.10 | 3.08 | 2.99 | 2.97 | 2.90 |
| Cash flow fr operating activities per share, SEK | 2.40 | 2.04 | 3.11 | 3.08 | 3.11 | 2.65 | 3.19 | 3.16 |
| EPRA NRV per share, SEK | 154.48 | 155.59 | 152.44 | 147.63 | 142.19 | 143.77 | 140.20 | 130.23 |
| Share price as % of EPRA NRV | 120.20 | 106.49 | 121.62 | 120.23 | 107.25 | 96.2 | 123.0 | 122.9 |
| Carrying amount of properties | 47,056 | 46,687 | 46,072 | 47,041 | 46,392 | 46,559 | 45,519 | 45,306 |
| Equity | 19,600 | 19,887 | 19,396 | 18,729 | 17,907 | 18,285 | 17,887 | 16,362 |
| Total assets | 48,411 | 47,964 | 46,961 | 48,762 | 47,616 | 47,795 | 46,558 | 46,318 |
Definitions of key ratios are available on page 23.
| Consolidated segment reporting January–June | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Property management | Malmö | Helsingborg | Lund | Copenhagen | Total | |||||
| SEK m | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 |
| Rental income | 540 | 593 | 362 | 366 | 259 | 270 | 316 | 318 | 1,477 | 1,548 |
| Property costs | -137 | -142 | -102 | -93 | -83 | -81 | -110 | -106 | -431 | -423 |
| Operating surplus | 403 | 451 | 260 | 273 | 176 | 189 | 206 | 212 | 1,046 | 1,125 |
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 2020 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 1,046 million (1,125) and the pre-tax profit of SEK 1,256 million (905) consists of central administration SEK -40 million (-38), financial net SEK -150 million (-157), share in results SEK 3 million (4) and changes in value of properties and derivatives SEK 397 million (-29).
| Parent company's income statement summary | |||||||
|---|---|---|---|---|---|---|---|
| SEK m | Jan–June 2021 | Jan–June 2020 | Jan-Dec 2020 | ||||
| Income | 115 | 105 | 215 | ||||
| Expenses | -106 | -100 | -203 | ||||
| Operating profits | 9 | 5 | 12 | ||||
| Financial income | 978 | 1,143 | 1,191 | ||||
| Financial expenses | -172 | -274 | -300 | ||||
| Pre-tax profit | 815 | 874 | 903 | ||||
| Appropriations | - | - | 550 | ||||
| Tax | -61 | -44 | -126 | ||||
| Profit for the period | 754 | 830 | 1,327 |
| Parent company's balance sheet summary | |||||||
|---|---|---|---|---|---|---|---|
| SEK m | 30-06-2021 | 30-06-2020 | 31-12-2020 | ||||
| Participations in Group companies | 9,430 | 9,592 | 9,506 | ||||
| Receivables fr Group companies | 14,848 | 14,747 | 14,231 | ||||
| Derivatives | 67 | - | - | ||||
| Other assets | 344 | 474 | 399 | ||||
| Cash and bank balances | 348 | 257 | 54 | ||||
| Total assets | 25,037 | 25,070 | 24,190 | ||||
| Equity | 6,523 | 6,079 | 6,576 | ||||
| Liabilities to credit institutions | 15,671 | 16,530 | 14,683 | ||||
| Derivatives | 131 | 193 | 183 | ||||
| Liabilities to Group companies | 2,626 | 2,183 | 2,634 | ||||
| Other liabilities | 86 | 85 | 114 | ||||
| Total equity and liabilities | 25,037 | 25,070 | 24,190 |
| Key figures for the group | ||||
|---|---|---|---|---|
| SEK m | Jan-June | Jan-June | July-June | Jan-Dec |
| 2021 | 2020 | 2020/2021 | 2020 | |
| Financial | ||||
| Return on equity, % | 10.3 | 7.9 | 13.4 | 11.9 |
| Return on total capital, % | 6.1 | 5.6 | 7.2 | 7.1 |
| Equity/assets ratio, % | 40.5 | 37.6 | 40.5 | 41.3 |
| Interest coverage ratio, multiple | 6.5 | 6.7 | 6.4 | 6.5 |
| Leverage properties, % | 49.6 | 52.5 | 49.6 | 48.2 |
| Debt/equity ratio, multiple | 1.2 | 1.4 | 1.2 | 1.2 |
| Share-related | ||||
| Earnings per share, SEK | 6.55 | 4.61 | 16.40 | 14.46 |
| Earnings per share before tax, SEK | 8.17 | 5.89 | 19.09 | 16.80 |
| EPRA EPS, SEK | 5.11 | 5.52 | 10.65 | 10.65 |
| Cash flow from operations per share, SEK | 4.44 | 5.76 | 10.62 | 11.91 |
| EPRA NDV (net disposal value) per share, SEK | 127.51 | 116.50 | 127.51 | 126.18 |
| EPRA NRV (net reinstatement value) per share, SEK | 154.48 | 142.19 | 154.48 | 152.44 |
| Market value per share, SEK | 185.70 | 152.50 | 185.70 | 185.40 |
| Proposed dividend per share, SEK | - | - | - | 5.25 |
| Dividend yield, %1 | - | - | - | 2.8 |
| Total return from share, % | - | - | - | 10.1 |
| P/E-ratio I, multiple | 14.2 | 16.5 | 11.3 | 12.8 |
| P/E-ratio II, multiple | 18.2 | 13.8 | 16.3 | 17.4 |
| 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 | 296 | 314 | 296 | 294 |
| Carrying amount of properties, SEK m | 47,056 | 46,392 | 47,056 | 46,072 |
| Estimated investment yield, % – all properties | 4.5 | 4.8 | 4.5 | 4.6 |
| Estimated direct return, % – excl project properties | 4.7 | 5.0 | 4.7 | 4.8 |
| Lettable area, m2 | 2,118,502 | 2,201,664 | 2,118,502 | 2,102,707 |
| Rental income, SEK per m2 | 1,551 | 1,522 | 1,551 | 1,554 |
| Operating surplus, SEK per m2 | 1,005 | 1,014 | 1,005 | 1,011 |
| Financial occupancy rate, % – all properties | 90 | 92 | 90 | 90 |
| Financial occupancy rate, % – excl project properties | 91 | 92 | 91 | 91 |
| Estimated surplus ratio, % | 72 | 73 | 72 | 72 |
| Employees | ||||
| Number of employees at period end | 244 | 228 | 244 | 236 |
Wihlborgs is currently building the Kvartetten office building in Hyllie in Malmö, where tomorrow's workplaces are being created with a focus on sustainability for the environment and for people. Reusing material and fittings, flexible offices with plenty of light, a fantastic roof terrace, Instabox and a bicycle lounge in combination with an office service in collaboration with the co-working company Mindpark will create an entirely new office experience. Kvartetten aims for a triple certification in line with SGBC Gold, WELL and NollCO2
20 Wihlborgs Interim report January-June 2021
The basis for key financial ratios that Wihlborgs present in the Interim report January–June 2021, page 19, are shown below. The following financial targets have been established by the Board:
*) Risk-free interest rate is defined as the rate on a 5-year Swedish government bond.
Unless otherwise stated, amounts are in SEK million.
| 30-06-2021 | 30-06-2020 | 31-12-2020 | |
|---|---|---|---|
| Return on equity | |||
| Profit for the period | 1,007 | 708 | 2,222 |
| Annualized | 2,014 | 1,416 | 2,222 |
| Equity, opening balance | 19,396 | 17,887 | 17,887 |
| Equity, closing balance | 19,600 | 17,907 | 19,396 |
| Average equity | 19,498 | 17,897 | 18,642 |
| Return on equity, % | 10.3 | 7.9 | 11.9 |
| Return on capital employed | |||
| Profit before tax | 1,256 | 905 | 2,583 |
| Interest expense (incl value changes interest derivatives) | 41 | 277 | 400 |
| Total | 1,297 | 1,182 | 2,983 |
| Annualized | 2,594 | 2,364 | 2,983 |
| Total assets, opening balance | 46,961 | 46,558 | 46,558 |
| Total assets, closing balance | 48,411 | 47,616 | 46,961 |
| Non-interest bearing debt, opening balance | -5,198 | -4,856 | -4,856 |
| Non-interest bearing debt, closing balance | -5,321 | -5,131 | -5,198 |
| Average capital employed | 42,426 | 42,094 | 41,733 |
| Return on capital employed, % | 6.1 | 5.6 | 7.1 |
| Equity/assets ratio | |||
| Equity | 19,600 | 17,907 | 19,396 |
| Total assets | 48,411 | 47,616 | 46,961 |
| Equity/assets ratio, % | 40.5 | 37.6 | 41.3 |
| Interest coverage ratio | |||
| Income from property management | 859 | 934 | 1,830 |
| Interest expense | 156 | 164 | 332 |
| Total | 1,015 | 1,098 | 2,162 |
| Interest expense | 156 | 164 | 332 |
| Interest coverage ratio, multiple | 6.5 | 6.7 | 6.5 |
| Leverage properties | |||
| Borrowings | 23,346 | 24,350 | 22,208 |
| Net value investement properties | 47,056 | 46,392 | 46,072 |
| Leverage properties, % | 49.6 | 52.5 | 48.2 |
| Debt/equity ratio | |||
| Interest-bearing liabilities | 23,510 | 24,531 | 22,368 |
| Equity | 19,600 | 17,907 | 19,396 |
| Debt/equity ratio, multiple | 1.2 | 1.4 | 1.2 |
| 30-06-2021 | 30-06-2020 | 31-12-2020 | |
|---|---|---|---|
| Earnings per share | |||
| Profit for the period | 1,007 | 708 | 2,222 |
| Average number of shares, thousands | 153,713 | 153,713 | 153,713 |
| Earnings per share, SEK | 6.55 | 4.61 | 14.46 |
| Earnings per share before tax | |||
| Profit before tax | 1,256 | 905 | 2,583 |
| Average number of shares, thousands | 153,713 | 153,713 | 153,713 |
| Earnings per share before tax, SEK | 8.17 | 5.89 | 16.80 |
| EPRA EPS | |||
| Income from property management | 859 | 934 | 1,830 |
| Tax depreciation, direct tax deductions etc | -503 | -532 | -929 |
| Taxable income from property management | 356 | 402 | 901 |
| Current tax on the above | -73 | -86 | -193 |
| Income from property management after deduction of current tax | 786 | 848 | 1,637 |
| Average number of shares, thousands | 153,713 | 153,713 | 153,713 |
| EPRA EPS, SEK | 5.11 | 5.52 | 10.65 |
| Operating cash flow per share | |||
| Operating cash flow | 682 | 886 | 1,831 |
| Average number of shares, thousands | 153,713 | 153,713 | 153,713 |
| Operating cash flow per share, SEK | 4.44 | 5.76 | 11.91 |
| EPRA NDV per share | |||
| Equity | 19,600 | 17,907 | 19,396 |
| Number of shares at year end, thousands | 153,713 | 153,713 | 153,713 |
| EPRA NDV per share, SEK | 127.51 | 116.50 | 126.18 |
| EPRA NRV per share | |||
| Equity | 19,600 | 17,907 | 19,396 |
| Deferred tax liability | 4,081 | 3,756 | 3,853 |
| Derivatives | 64 | 193 | 183 |
| Total | 23,745 | 21,856 | 23,432 |
| Average number of shares, thousands | 153,713 | 153,713 | 153,713 |
| EPRA NRV per share, SEK | 154.48 | 142.19 | 152.44 |
| Dividend yield per share | |||
| Proposed dividend, SEK | - | - | 5.25 |
| Market price per share at year end | - | - | 185.4 |
| Dividend yield per share, % | - | - | 2.8 |
| Total yield per share | |||
| Market price per share at year start | - | - | 172.5 |
| Market price per share at year end | - | - | 185.4 |
| Change in market price during the year, SEK | - | - | 12.90 |
| Dividend paid during the year, SEK | - | - | 4.50 |
| Total return per share, % | - | - | 10.1 |
| P/E ratio I | |||
| Market price per share at year end | 185.70 | 152.50 | 185.40 |
| Earnings per share | 6.55 | 4.61 | 14.46 |
| Annualized per share | 13.10 | 9.22 | 14.46 |
| P/E ratio I, multiple | 14.2 | 16.5 | 12.8 |
| P/E ratio II | |||
| Market price at year end | 185.70 | 152.50 | 185.40 |
| EPRA EPS | 5.11 | 5.52 | 10.65 |
| Annualized per share | 10.22 | 11.04 | 10.65 |
| P/E ratio II, multiple | 18.2 | 13.8 | 17.4 |
Some of the financial metrics that Wihlborgs presents in the interim report are not defined in accordance with IFRS. Wihlborgs is of the opinion that these metrics provide valuable complementary information to investors and the company's management, since they enable evaluation of the company's performance.
As all companies do not apply the same approach to calculating these financial metrics, they are not always comparable to metrics used by other companies. Accordingly, these metrics should not be viewed as replacements for metrics defined under IFRS. On this page, definitions of metrics are presented that, with a few exceptions, are not defined in accordance with IFRS.
The key ratios are based on the statements of income, financial position, changes in equity and cash flow. Some of the historic data is compiled from the historical summary on page 17 In Wihlborgs' Interim Report.
Profit for the period as a percentage of average equity, excluding non-controlling interests. Average equity refers to the average of the opening and closing values for the respective period. In interim reports, the return is converted to its annualised value without taking account of seasonal variations. The ratio comprises a measure of the profitability in relation to shareholders' equity.
Earnings before interest expense, derivatives and taxes (EBIT) as a percentage of average capital employed. Capital employed is defined as total assets less non-interest-bearing liabilities and provisions. Average capital employed refers to the average of the opening and closing balances for each period. In interim reports, the return is converted to its annualised value without taking account of seasonal variations. The metric shows the return on the capital provided by shareholders and lenders without regard to interest.
Equity as a percentage of total assets at the end of the period. The ratio provides a measure of the financial strength of the company.
Income from property management, plus interest expense, divided by interest expense. The ratio measures the degree to which earnings can decline without jeopardising interest payments or, alternatively, how much interest expense can increase before income from property management becomes negative.
Borrowings as a percentage of the properties' carrying amounts. The ratio shows the degree of borrowing on the property portfolio.
Interest-bearing liabilities include borrowings, lease liabilities and any other interest-bearing liabilities.The ratio illustrates the relationship between borrowings and equity and, thereby, the gearing and financial strength.
The operating surplus, shown as a percentage of rental income. The ratio illustrates the proportion of rental income that remains after deducting property management costs.
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.
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 divided by the average number of shares outstanding.
Income from property management less the estimated tax payable on taxable income from property management divided by the average number of shares outstanding. Taxable income from property management is defined as income from property management less fiscal depreciation/amortisation and direct deductions. The effect of loss carryforwards is not taken into consideration.
Cash flows from operating activities divided by the average number of shares outstanding.
The closing balances for equity divided by the number of shares at the end of the period.
The closing balances for equity following the reversal of interest-rate derivatives and deferred tax according to the balance sheet, divided by the number of shares at the end of the period.
Proposed dividend as a percentage of the year-end share price.
Share price performance plus actual dividend relative to the share price at the start of the year.
Market price per share divided by earnings per share. In interim reports, the ratio is converted to its annualised value without taking account of seasonal variations.
Market price per share divided by EPRA RPS per share. In interim reports, the ratio is converted to its annualised value without taking account of seasonal variations.
Time remaining until the interest on all interest bearing debts in average has been adjusted.
Time remaining until an average of all interest bearing debts has been refinanced.
These key figures are based on the property table on page 10. The table shows the estimated rental value, rental income and property expenses on an annualised basis with an unchanged property portfolio, rental income and lettings portfolio compared with the end of the last quarter.
Rental income plus estimated market-level rents for unlet space.
Operating surplus as a percentage of the carrying amount for the properties at the end of the period.
Rental income on an annualised basis divided by lettable area.
Economic occupancy rate Rental income as a percentage of rental value.
Operating surplus as a percentage of rental income.
| Interim report Jan–Sep 2021 22 October 2021 | |
|---|---|
| Year-end report 2021 15 February 2022 | |
| Interim report Jan-March 2022 26 April 2022 | |
| Annual General Meeting 26 April 2022 |
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.
| Mia Rolf the new Director of Marketing and Corporate Communications at Wihlborgs 18 May 2021 | |
|---|---|
| Wihlborgs signs lease with Regin to open a new innovation centre at Ideon in Lund5 May 2021 | |
| Annual General Meeting 27 April 2021 | |
| Interim report Jan-March 2021 27 April 2021 | |
| Wihlborgs attracts the food concept Eatery to Ideon Science Park20 April 2021 | |
| Wihlborgs Annual Report and Sustainability Report 2020 1 April 2021 |
Ulrika Hallengren, CEO +46 (0)40-690 57 95, [email protected]
Arvid Liepe, CFO +46 (0)40-690 57 31, [email protected]
Wihlborgs Fastigheter AB Box 97, SE-201 20 Malmö Visitors: Stora Varvsgatan 11A Tel: +46 40 690 57 00
Wihlborgs Fastigheter AB Terminalgatan 1 SE-252 78 Helsingborg Tel: +46 42 490 46 00
Wihlborgs Fastigheter AB Ideon Science Park Scheelevägen 17 SE-223 70 Lund Tel: +46 46 590 62 00
Wihlborgs A/S Mileparken 22A DK-2740 Skovlunde, Denmark Tel: +45 396 161 57
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