Interim / Quarterly Report • Jul 6, 2021
Interim / Quarterly Report
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Q2 Interim Report 1 January - 30 June 2021
| Q2 2021 | Q2 2020 | |
|---|---|---|
| Long-term net asset value (EPRA NRV) per share | 101.38 | 88.34 |
| Interest coverage ratio (multiple) | 4.2 | 4.0 |
| Loan-to-value ratio, % | 49 | 50 |
| Investment yield, % | 3.8 | 4.2 |
| Surplus ratio, % | 77 | 76 |
| Economic occupancy rate, % | 91 | 94 |
Property value
SEK 24 billion
Lettable area 847,000 sq. m.
The quarter just ended was a very eventful period to say the least for our company. We concluded our second largest property transaction ever, we broke new ground by letting projects in the logistics segment, we received an investment grade rating, we are now included in the EPRA real estate index and we became the first Large Cap company to receive the Nasdaq Green Equity Designation. At the same time, our day-to-day operations are continuing apace. As I sit at my keyboard writing this CEO comment, I am both proud of and grateful to our staff and partners for their incredible input.
Through the acquisition of three properties – Odontologen, Biotech Center and Hälsovetarbacken – at an underlying property value of SEK 1,875 million from Higab at Campus Medicinareberget we are moving into a new, interesting geographical area that already has strong and stable tenants and a very exciting future. Campus Medicinareberget, which is located next to Sahlgrenska Hospital and Sahlgrenska Science Park, is an incubation space for existing and new Life Sciences businesses. We see great potential for us to be involved in the continuing development of the area in cooperation with tenants and other property owners.
We have sold two of our office properties, Sörred 8:11 (AB Volvo's former head office) and Sörred 7:24 in Torslanda in a real estate exchange transaction with Volvo Car Corporation (VCC). Under the swap, VCC is signing a ten-year lease for around 20,000 sq. m. of industrial/logistics facilities at the property Syrhåla 3:1 and will receive a deduction on the purchase consideration as part of the exchange transaction. In total, the net value of the sale is SEK 304 million.
The property transactions clearly reflect our strategy for area development: to create value by taking a leading position in selected segments of the market. The acquisition from Higab at Medicinareberget means we are entering a new, exciting area and our ambition is to actively contribute to the development of the area. The sale and lease arrangement with VCC enables us to streamline our property portfolio by selling our office properties in Torslanda and concentrate our focus in the area on becoming a leader player in industrial/logistics property. We are also strengthening our relationship with VCC, which is one of the key players in ensuring that Torslanda continues to develop into an even more attractive area to work in.
We achieved positive net lettings in our office property segment in the second quarter too. At the time of writing, there are no statistics to share about the overall letting market in Gothenburg in the second quarter, but I believe the trend of growing vacancy rates has been reversed and that demand for office property is more stable.
Our industrial and logistics property segment is seeing strong demand for newly produced logistics facilities in particular. We are pleased to have concluded two project lettings in the quarter for a total of 35,000 sq. m. and with a rental value of just over SEK 26 million. These are not yet showing in our net lettings since occupancy is scheduled for later than 18 months from now.
Early on in the pandemic it became apparent that an investment grade rating and the objective assessment it involves was very important in order to be given priority by lenders in a financial system suffering from a lack of liquidity. In the autumn of 2020, Platzer's Board of Directors decided to lower Platzer's target for the loan-tovalue ratio to not exceed 50% over time, and to establish the conditions for achieving an investment grade rating. In the second quarter we were assigned the investment grade rating BBB- with a stable outlook by Nordic Credit Rating (NCR), which in addition to providing increased security in turbulent times also improves our opportunities for obtaining financing on competitive terms.
We knew that being included in an index where global capital is invested widely across a sector (listed property companies) and a geographical area (Europe) would have a positive impact on Platzer's share price. When it was announced that we would be included in the EPRA index, our share price rose sharply. Since our IPO in 2013, we have monitored the progress and opportunities to be included in the index, but failed to pass due to, among other things, the EPRA index's requirements for liquidity in the share. The fact that we have now been included reflects the fact that we meet the index parameters for inclusion, including the liquidity requirement, which I believe is partly due to us now being a Large Cap company. We are pleased and grateful to be included i n the index and are in close contact with EPRA to ensure that we remain part of the index. However, we as a company are not able to fully impact liquidity in our share.
Our long-term efforts to create an increasingly sustainable Platzer are producing results, both through improved key ratios in the business, such as reduced energy consumption and reduced carbon footprint, and through the company achieving various green distinctions. Our share was classified as green a while back, our financing is becoming increasingly green and a very large proportion of our properties are environmentally certified. In the second quarter, Nasdaq launched its "Nasdaq Green Designation", the aim of which is to make it easier for investors to find sustainable companies on the Stockholm stock exchange. We are proud to be the first Large Cap company to receive the Nasdaq Green Designation.
On 4 June 2021, Gothenburg celebrated its 400th anniversary. Due to Covid-19, the celebrations were severely reduced and muted, which for someone like me, whose heart belongs to Gothenburg, felt very sad. Hopefully, the celebrations will be postponed by no more than a few years and not delayed until the 500th jubilee in 2121, when none of us will be around to see it. However, the 400th anniversary did make me reflect on the kind of company I would like Platzer to be today and in the future. At a time when property is increasingly seen as a commodity, "a money spinner", where the owners are only interested in the yield and don't care about where the properties are located, who works with the properties or who the tenants are, it feels good to be representing a company where we can say with conviction that we are participating in the development of Gothenburg into a city that we can be proud of today and in the future. A property company that delivers value for the owners, employees and tenants of today without comprising the ability to create value for future generations of Gothenburg residents. It is my hope that Platzer can remain such a company, so that when the 500th anniversary comes along, they can look out over the city and point to large numbers of areas and properties that Platzer has helped to create for the benefit of the city and its residents.
P-G Persson, CEO
Since the millennium, Gothenburg has grown by around 200,000 residents. This is equivalent to 10,000 new Gothenburg residents every year. At the same time, unemployment has remained lower than in both Stockholm and Malmö. Gothenburg has also recovered rapidly since the start of the pandemic. Now the city is getting ready to grow further. The city is expected to grow by 250,000 residents by 2050, and to add 120,000 homes and 100,000 new jobs.
The pace of urbanisation in Sweden is higher than in many other countries. In the last 20 years all three metropolitan areas have grown sharply. This is also in line with the international trend, which suggests that smaller metropolitan areas have the largest growth potential, while megacities are predicted to have peaked.
What marks out Gothenburg is its combination of rapid growth, a young population and low unemployment. The average age of a person living in Gothenburg is 39.1, younger than both the average age in Stockholm (39.4) and the average Swede (41.4). Only in Malmö was the average age slightly lower. The unemployment rate in Gothenburg in May stood at 7.3 per cent, while it was 7.8 per cent in Stockholm, 10.6 per cent in Malmö and 8.1 per cent for the country as a whole.
Not only is the number of people living in Gothenburg rising, but the labour market area is growing even faster. One of the reasons for this is the large investments made in the railway network in recent decades. The Gothenburg labour market area includes Trollhättan, Uddevalla and Vänersborg, as well as Varberg and Falkenberg. In total, this labour market comprises 1.4 million people. In 2030, Borås and the surrounding areas are also expected to be included in the labour market area, taking the total to 1.8 million inhabitants.
Gothenburg has recovered sharply from the dip caused by the outbreak of the coronavirus pandemic. This can be seen in falling unemployment figures but also in reports from the region's two largest private companies. Volvo Cars has reported increased sales for 11 consecutive months compared with the corresponding months in the previous year. In spring 2021, Volvo Cars not only beat its performance in the previous year, but also its results in the corresponding period in 2019. At the same time, Volvo Lastvagnar has seen orders received increase in the last three quarters. Here too the figures for the first quarter of 2021 were better than in either 2020 or 2019.
Yet another indicator is activity at the Port of Gothenburg, which is by far the largest port not only in Sweden but in the whole of the Nordic region. The interim report for the first quarter of 2021 shows that volumes have returned to pre-pandemic levels. Container port traffic even outperformed the corresponding period in 2019. The port is one of the reasons Gothenburg is named Sweden's best logistics location every year by the trade publication Intelligent Logistik.
The robustness of the upturn is confirmed by the willingness of businesses to invest. In surveys carried out by the Confederation of Swedish Enterprise, businesses in Region Västra Götaland have been more positive than businesses in Stockholm and other parts of Sweden since 2016. In the past year there has been a strong recovery, and today the number of businesses reporting an improvement in performance is on a par with the number reporting a decrease.
For a more long-term perspective, it is interesting to look at the political ambitions for the city's development. Right now, work is underway on a new master plan for the City of Gothenburg and there is broad political consensus on the ambition to ensure continued growth of the city. Under the plan, the number of Gothenburg residents will grow by 250,000 by 2050. Before that, 120,000 new homes and 100,000 new jobs will be created. Growth will take place in the city centre, inner suburbs and outer suburbs. Compared with earlier plans, there is now greater emphasis on small family homes in order to attract families with young children who have tended to move out to municipalities on the edges of the city.
Many public transport hubs are located in the inner suburbs and under the plan, new, mixed-use urban environments will be created around these hubs. So far, the primary example of such an area is Gamlestaden, where we, as the leading player, have assumed large responsibility for developing a homogenous, sustainable city.
Overall, most indicators point to Gothenburg as the place to be for those who want to get involved in an exciting voyage of development with big opportunities for good yields. This is why Platzer is here. Together with our tenants in various industry sectors we are contributing to the continued development of Gothenburg.
100,000 new jobs
120,000 new housing
250,000 new residents
Comparative amounts for income statement items refer to the corresponding period in the previous year.
| SEK million | 2021 Apr-Jun |
2020 Apr-Jun |
2021 Jan-Jun |
2020 Jan-Jun |
2020 Jan-Dec |
2020/2021 Jul-Jun |
|---|---|---|---|---|---|---|
| Rental income | 296 | 286 | 589 | 571 | 1,142 | 1,160 |
| Property costs | -67 | -66 | -138 | -135 | -274 | -277 |
| Operating surplus | 229 | 220 | 451 | 436 | 868 | 883 |
| Central administration | -14 | -15 | -29 | -30 | -54 | -53 |
| Share of profit of associates | 35 | 16 | 44 | 47 | 66 | 63 |
| Net financial income/expense 1) | -52 | -49 | -101 | -98 | -200 | -203 |
| Income from property management (incl. associates) |
198 | 172 | 365 | 355 | 680 | 690 |
| Change in value, investment properties | 317 | 11 | 500 | 460 | 1,006 | 1,046 |
| Change in value, financial instruments | 7 | -36 | 97 | -130 | -89 | 138 |
| Change in value, financing arrangements | 1 | - | 17 | - | 74 | 91 |
| Profit before tax | 523 | 147 | 979 | 685 | 1,672 | 1,965 |
| Tax on profit for the period | -107 | -2 | -198 | -111 | -297 | -384 |
| Profit for the period 2) | 416 | 145 | 781 | 574 | 1,374 | 1,581 |
| Profit for the period attributable to: | ||||||
| Parent company's shareholders | 415 | 144 | 778 | 570 | 1,365 | 1,573 |
| Non-controlling interests 3) | 1 | 1 | 3 | 4 | 9 | 8 |
| Earnings per share 4) | 3.47 | 1.20 | 6.49 | 4.76 | 11.40 | 13.13 |
1) Net financial income/expense includes ground lease costs totalling SEK 0.7 million (0.5) for the period.
2) The Group has no items of other comprehensive income and therefore the consolidated profit for the period is the same as comprehensive income for the period.
3) Refers to non-controlling interests in jointly owned companies where Platzer holds the controlling interest.
4) There is no dilution effect because there are no potential shares.
Income from property management for the period amounted to SEK 365 million (355). The increase was primarily due to lettings in new production and acquisitions in the previous year. Share of profit of associates for the period amounted to SEK 44 million (47). Income from property management per share, excluding changes in the value of interests in associates, amounted to SEK 2.63 (2.58).
Profit for the period amounted to SEK 781 million (574), up by 36.1%. The increase was primarily due to an increase in the value of financial instruments. In the period, we recorded a change in the value of our financing arrangements of SEK 17 million (-).
Förvaltningsresultat ack Q2 2021
Income from property management, acc. Q2
2017 2018 2019 2020 2021
Rental income in the period increased to SEK 589 million (571), up by 3.2%. The increase was primarily due to the first tenants moving into Gårda Vesta and the fact that we acquired the property Inom Vallgraven 54:11 in autumn 2020. The decrease for comparable property was largely due to higher vacancy rates. Annualised rental income from existing leases (as at 30 June 2021) was estimated at SEK 1,264 million (1,217), see earning capacity on page 11. The economic occupancy rate during the period was 91% (94).
| Q2 2021 SEK m |
Q2 2020 | SEK m Change, % | |
|---|---|---|---|
| Comparable properties | 549 | 564 | -2,7 |
| Project properties | 30 | 7 | |
| Property transactions | 10 | - | |
| Rental income | 589 | 571 | 3.2 |
Property costs for the period amounted to SEK -138 million (-135). The increase was primarily due to commencement of occupancy in Gårda Vesta and to our property acquisition of Inom Vallgraven 54:11. The cold weather in the first quarter and the mild second quarter resulted in higher utility costs and higher snow removal and anti-icing costs, while efforts to keep costs down during the coronavirus crisis resulted in limited cost increase. Operating and maintenance costs vary during the year. Costs in the first and fourth quarters are normally higher than in the other two quarters, primarily because of higher utility costs and snow removal and anti-icing costs.
| Q2 2021 SEK m |
Q2 2020 | SEK m Change, % | |
|---|---|---|---|
| Comparable properties | 130 | 130 | 0.0 |
| Project properties | 7 | 5 | |
| Property transactions | 1 | - | |
| Property costs | 138 | 135 | 2.2 |
The operating surplus in the period increased by 3.4% to SEK 451 million to (436). The increase was primarily due to the first tenants moving into Gårda Vesta and the fact that we acquired the property Inom Vallgraven 54:11 in autumn 2020. The operating surplus for comparable properties declined by 2.8%. The surplus ratio was 77% (76). The investment yield for the properties was 3.8% (4.2).
Central administration expenses were on a par with the same period in the previous year at SEK -29 million (-30). This was primarily due to the fact that employee-related costs have increased as the number of employees has increased, while the cost of consulting services have decreased by a corresponding amount.
The number of staff at the end of the period was 87 (85).
Platzer owns 20% of SFF Holding AB, which issues bonds and is owned in equal parts by Catena, Diös, Fabege, Platzer and Wihlborgs. We also own 50% of the limited partnership Biet together with Bygg-Göta, through which we jointly own the property Inom Vallgraven 49:1 (Merkur). In addition, we and Bockasjö each own 50% of Sörreds Logistikpark Holding AB, which in turn owns the properties Sörred 7:21 and Sörred 8:12.
Share of profit of associates for the period amounted to SEK 44 million (67), with the difference compared with the same quarter in 2020 primarily due to a lower rate of increase in the value of property.
Net financial expense for the period amounted to SEK -101 million (-98). Net financial income/expense was adversely affected by higher borrowings but this was offset primarily by a lower Stibor rate.
Borrowings were on average SEK 870 million higher than in the same period in the previous year. The increase was primarily due to financing of ongoing projects and acquisitions in the previous year.
The average interest rate for the period, including the effects of derivative instruments, was 2.0% (2.1).
Changes in the value of properties in the period amounted to SEK 500 million (460). The increase was due both to investments in projects and other value increases. Changes in the value of financial instruments totalled SEK 97 million (-130), while unrealised changes in the value of financing arrangements amounted to SEK 17 million (-).
Tax expense for the period amounted to SEK -198 million (-111), of which SEK -25 million (-37) comprised current tax and SEK -173 million (-74) deferred tax. Deferred tax was impacted by unrealised changes in the value of properties and derivatives.
The corporation tax rate will be reduced from 21.4% to 20.6% for the 2021 fiscal year. With effect from this year, current tax and deferred tax expected to be payable in 2022 or later will be calculated using the same tax rate.
With effect from the first quarter of 2020 we report our operations within the Industrial/Logistics business area as a separate segment. As before, our operations within the Offices business area are reported as three geographical segments.
The total operating surplus corresponds to the operating surplus reported in the income statement.
| Offices | Industrial/ Logistics |
properties | Project | Total | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gothenburg | Central South/West Gothenburg |
North/East Gothenburg |
|||||||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||
| Rental income | 250 | 255 | 37 | 38 | 133 | 127 | 139 | 144 | 31 | 7 | 589 | 571 | |
| Property costs | -57 | -56 | -9 | -9 | -35 | -32 | -32 | -33 | -7 | -5 | -139 | -135 | |
| Operating surplus | 193 | 199 | 28 | 29 | 98 | 95 | 107 | 111 | 24 | 3 | 450 | 436 | |
| Fair value, properties | 12,893 | 10,703 | 1,053 | 1,056 | 4,416 | 4,220 | 3,937 | 3,440 | 2,087 | 1,784 24,386 21,203 | |||
| Of which investments/ acquisitions/disposals/ changes in value over the year |
2,190 | 395 | -3 | 8 | 196 | 62 | 497 | 118 | 303 | 141 | 3,183 | 724 |
Our property portfolio comprised 70 properties on 30 June 2021. The portfolio includes three jointly owned properties, which are accounted for as associates. The fair value of the properties totalled SEK 24,386 million, excluding associates. The property portfolio includes 22 project properties, of which two are jointly owned. The total lettable area, including associates, was 846,438 sq. m., of which office property accounted for 54%, industrial and logistics 30%, health and medical care 3%, restaurants 2%, retail and hotels 1% each and other property 9%. The economic occupancy rate during the period was 91% (94). We report our property portfolio in three geographical office segments as well as industrial/logistics and project properties:
Our letting operations performed positively in the period. We saw a continued increase in demand and a rise in the number of leases concluded compared with the third and fourth quarter of 2020. Total net lettings in investment and project properties in the period amounted to SEK 4 million (5). In the second quarter we concluded new leases worth a total of SEK 14 million (19) and terminations amounted to SEK -11 million (-14). Net lettings in investment and project properties in the second quarter therefore amounted to SEK 3 million (5).
Leases corresponding to rent volume of SEK 65 million (46) were renegotiated in the period. The average increase in rent was 6% (16).
| Q1-Q2 2021 SEK m |
Q1-Q2 2020 SEK m |
|
|---|---|---|
| Investment properties, lettings | 30 | 28 |
| Investment properties, terminations | -27 | -27 |
| Project properties, lettings | 3 | 4 |
| Project properties, terminations | -2 | - |
| Total net lettings | 4 | 5 |
In addition to the above, we have concluded leases worth SEK 51 million. According to our definition, leases that are concluded are not recognised in net lettings until the terms of the lease are met and occupancy is scheduled within less than 18 months.
Renegotiated leases and rent increases, by quarter
In offices, the company is the leading player in Gullbergsvass, Gårda, Gamlestaden and Högsbo. Major tenants include the Swedish Social Insurance Agency, the Swedish Tax Agency, the City of Gothenburg, Mölnlycke Health Care, the Swedish Migration Agency, Nordea, Region Västra Götaland, Swedish Public Dental Care (Folktandvården), Elite Plaza and Zenseact. In total, we have 641 leases for office space generating total rental income of SEK 949 million on an annual basis.
Net lettings in investment and project properties in the period amounted to SEK 5 million (4). Lettings in investment properties totalled SEK 22 million (22) while notices of termination amounted to SEK -18 million (22). The largest proportion of lettings was in the city centre excluding the Central Business District (CBD) and CBD. Lettings in project properties amounted to SEK 3 million (4), while terminations totalled SEK -2 million (0).
Leases corresponding to rent volume of SEK 40 million (39) were renegotiated in the period and the average increase in rent was 8% (22).
In Industrial/Logistics, we are the leading player in Arendal. Major tenants include DFDS, DHL, Plasman, SSAB and Sveafjord. In total, we have 74 leases in industrial and logistics generating total rental income of SEK 271 million on an annual basis.
Net lettings in investment and project properties in the period amounted to SEK -1 million (1). Lettings in investment properties totalled SEK 8 million (6) while notices of termination amounted to SEK -9 million (-5). The leases that were signed were in Arendal. Lettings and terminations in project properties in the period amounted to SEK 0 million (0).
Leases corresponding to rent volume of SEK 25 million (7) were renegotiated in the period and the average increase in rent was 4% (0).
Platzer's lease portfolio comprises a broad customer base. At the time of publication of this report, the proportion of rent paid in respect of payment notices issued for the third quarter and July 2021 was on the same level as in the corresponding periods in previous years.
The customer segments that have been and may continue to be adversely affected as a result of the measures taken to combat Covid-19 and the consequences of the virus, account for a fairly small proportion. A handful of tenants whose business is fundamentally strong but who have really needed short-term help in the current situation in order to survive financially, have received help from us. These temporary rent discounts amounted to 0.2% of rental income in the period.
| Q2 2021 | Q2 2020 | |
|---|---|---|
| Number of commercial leases | 715 | 735 |
| Rental income from commercial leases on an annual basis, SEK m |
1,220 | 1,168 |
| 20 largest leases, proportion of rental value, % |
32 | 35 |
| Largest tenant, proportion of rental value, % |
8 | 10 |
| Largest lease, proportion of rental value, % |
3 | 3 |
| Average remaining term, months. | 41 | 38 |
| Number | Rental | Economic | Rental | Operating | ||||
|---|---|---|---|---|---|---|---|---|
| of proper ties |
Lettable area, sq. m. |
Fair value, SEK m |
value, SEK m |
occupancy rate, % |
income, SEK m |
surplus, SEK m |
Surplus ratio, % |
|
| Investment properties | ||||||||
| Central Business District (CBD) | 8 | 75,145 | 4,322 | 214 | 81 | 173 | 131 | 76 |
| City centre excl. CBD | 18 | 185,873 | 8,571 | 401 | 94 | 377 | 285 | 76 |
| Central Gothenburg | 26 | 261,018 | 12,893 | 615 | 89 | 550 | 416 | 76 |
| East Gothenburg | 5 | 121,076 | 2,750 | 192 | 92 | 177 | 133 | 75 |
| Norra Älvstranden/Backaplan | 4 | 38,309 | 1,358 | 85 | 90 | 77 | 57 | 74 |
| Hisingen, other | 2 | 25,854 | 308 | 29 | 63 | 18 | 13 | 71 |
| North/East Gothenburg | 11 | 185,239 | 4,416 | 306 | 89 | 272 | 203 | 74 |
| West Gothenburg | 4 | 22,073 | 252 | 24 | 77 | 19 | 11 | 57 |
| Mölndal | 4 | 28,844 | 801 | 57 | 99 | 56 | 46 | 81 |
| South/West Gothenburg | 8 | 51,067 | 1,053 | 81 | 93 | 75 | 56 | 75 |
| Industrial/Logistics | 2 | 316,896 | 3,937 | 292 | 94 | 274 | 207 | 76 |
| Total investment properties | 47 | 814,070 | 22,299 | 1,294 | 91 | 1,171 | 883 | 75 |
| Project properties | 20 | 26,999 | 2,087 | 96 | 96 | 92 | 77 | |
| Total Platzer | 67* | 841,069 | 24,386 | 1,391 | 91 | 1,264 | 960 | 76 |
| *) excluding three jointly owned properties accounted for as associates | ||||||||
| In addition to the above, we have entered into leases for occupancy from 1 January 2022 onwards: |
Rental income, SEK m |
of which associates |
||||||
| Current and future new build projects | 108 | 12 |
Investment properties 12 1
The table is based on the property portfolio as at 30 June 2021 and provides a snapshot of our earning capacity; it is not a forecast. The table is not an assessment of any changes in vacancy rates or leases. It also does not include properties owned via associates.
The breakdown of office property is in line with the general geographical breakdown used by the property industry in Gothenburg with the exception of our property at Backaplan, which we account for as Norra Älvstranden. We report our industrial/logistics properties and project properties separately. Project properties include all our properties in Södra Änggården, for example.
By rental value we mean rental income plus the estimated market rent for vacant premises in their existing condition. The results-related columns include current leases in existing properties, including for future occupancy in the next six months. Leases for later occupancy or in properties currently under construction are not included.
Rental income refers to contracted rental income, including agreed supplements such as payments for heating and property taxes, and excluding limited period discounts of approximately SEK 20 million. For project properties where the project has not yet started or where projects are underway, the information relating to rental value, rental income and operating surplus refers to existing leases and costs in the property. For project properties where occupancy is due to take place in the next six months, the figures include rental value, rental income and operating surplus attributable to these leases. The lease agreed with Internationella Engelska Skolan in Södra Änggården is not included in the rental income above because the terms and conditions of the contract have not yet been met.
The operating surplus shows the properties' earning capacity on an annual basis, defined as contracted rental income as at 1 July 2021. Deductions are made for estimated property costs, including property administration, for a normal year over a rolling 12-month period.
Comparative amounts for balance sheet items refer to 31 December 2020.
| SEK million | 30 Jun 2021 | 30 Jun 2020 | 31 Dec 2020 |
|---|---|---|---|
| Assets | |||
| Investment properties 1) | 24,386 | 21,203 | 22,575 |
| Right of use assets, leasehold | 30 | 30 | 30 |
| Other non-current assets | 19 | 13 | 11 |
| Non-current financial assets | 380 | 275 | 347 |
| Current assets | 154 | 180 | 176 |
| Cash and cash equivalents | 171 | 557 | 148 |
| Total assets | 25,140 | 22,258 | 23,286 |
| Equity and liabilities | |||
| Equity | 10,217 | 8,890 | 9,687 |
| Deferred tax liability | 1,879 | 1,502 | 1,707 |
| Non-current interest-bearing liabilities 2) | 9,195 | 4,907 | 7,217 |
| Lease liability | 30 | 30 | 30 |
| Other non-current liabilities | 469 | 698 | 585 |
| Current interest-bearing liabilities | 2,818 | 5,642 | 3,633 |
| Other current liabilities | 532 | 589 | 427 |
| Total equity and liabilities | 25,140 | 22,258 | 23,286 |
1) Of which SEK 736 million (688) comprise assets held for sale.
2) Of which SEK 313 million (188) comprise liabilities relating to assets held for sale.
Pledged assets as at 30 June 2021 amounted to SEK 11,005 million (SEK 10,664). Contingent liabilities as at 30 June 2021 amounted to SEK 399 million (260).
Platzer's cash flow is strong and its financial position is also strong. Our projects are proceeding according to plan, with secure financing and a high occupancy rate.
The properties were recognised at a fair value of SEK 24,386 million (22,575), which was based on an internal valuation as at the balance sheet date. The properties are valued internally at the end of each quarter, using a ten-year cash flow model for all properties. Additionally, at each year-end we carry out an external valuation of a few sample properties that form a cross section of the property portfolio. The external valuation covers at least 30% of the value of the property portfolio and is performed for the purpose of ensuring quality assurance of the internal valuation. Historically, the difference between our internal valuation and the external valuation has been small. The investment properties are valued within level 3 in the IFRS 13 fair value hierarchy.
The internal property valuation in the period showed a change in the value of investment properties of SEK 500 million (460). Of the change in value, around 30% was due to increased market rents, 30% to urban development, project development and property development, while 40% of the change in value was due to adjustment of required yields in the portfolio. Because each property is valued individually, the portfolio premium that can occur in the property market has not been taken into account. The
average yield requirement based on the valuation at the balance sheet date was 4.7%.
We have previously concluded agreements on the sale of ten future properties in Södra Änggården. In total, this involves 14 project properties in the Högsbo area. The disposals are subject to the detailed development plan becoming legally binding. In April 2020, the City Council approved the detailed development plan for Olof Asklunds gata. This decision was later appealed. The Land and Environment Court of Appeal, the court of last resort, granted a review in the second quarter and a decision is expected in autumn 2021.
The transaction is planned to be implemented in three stages, with the first completion taking place after the detailed development plan becomes legally binding. The received down payment of a total of SEK 103 million will be recognised as a liability until the terms and conditions of sale have been fulfilled. Total income from the disposals in this project are estimated at around SEK 1.8 billion, SEK 1.6 billion of which is attributable to agreements signed so far. The properties are being sold as ready for construction, which means that Platzer is responsible for costs arising from demolition, decontamination and development of roads and parks. The disposals have not yet been recognised through profit or loss, and instead valuation of building rights is expected to take place when the detailed development plan has become legally binding in accordance with our valuation principles. At that point the disposals will be
recognised through profit or loss, primarily as changes in the value of properties, and are expected to boost equity by SEK 6-7 per share.
On 24 June we concluded agreements on the acquisition of the properties Änggården 718:1 ("Odontologen"), Änggården 718:141 ("Hälsovetarbacken") and Änggården 36:1 ("Biotech Center") in the form of company acquisitions. The acquisition of Änggården 718:1 was completed on 30 June and the provisional completion date for the other two properties is 30 September 2021. On June 30, an agreement was signed for the sale of the properties Sörred 7:24 and Sörred 8:11.
Withdrawal takes place per September 1, 2021.
Investments in existing properties in the period amounted to SEK 410 million (514), with the largest investments involving the new build projects Gårda Vesta (Gårda 2:12) and Kineum (Gårda 16:17).
The Group's equity amounted to SEK 10,217 million (9,687) as at 30 June 2021. The equity/assets ratio on the same date was 41% (42), well above the target of 30%.
Equity per share as at 30 June stood at SEK 84.62 (80.23), while the long-term net asset value, EPRA NRV, was SEK 101.38 (96.35) per share.
| 2021 | 2020 | 2020 | |
|---|---|---|---|
| Jan-Jun | Jan-Jun | Jan-Dec | |
| Value of properties, opening balance | 22,575 | 20,479 | 20,479 |
| Investments in existing properties | 410 | 514 | 994 |
| Property acquisitions | 900 | - | 395 |
| Property sales | - | -250 | -299 |
| Changes in value | 500 | 460 | 1,006 |
| Value of properties, closing balance | 24,386 | 21,203 | 22,575 |
| SEK million | 2021 Jan-Jun |
2020 Jan-Jun |
2020 Jan-Dec |
|---|---|---|---|
| Equity attributable to the Parent Company's shareholders | |||
| At the beginning of the period | 9,612 | 8,487 | 8,487 |
| Comprehensive income for the period | 778 | 570 | 1,365 |
| Dividend | -251 | -240 | -240 |
| At the end of the period | 10,140 | 8,817 | 9,612 |
| Equity attributable to non-controlling interests | |||
| At the beginning of the period | 74 | 69 | 69 |
| Withdrawals | - | - | -3 |
| Comprehensive income for the period | 3 | 4 | 9 |
| At the end of the period | 77 | 73 | 74 |
| Total equity | 10,217 | 8,890 | 9,687 |
Odontologen (Änggården 718:1) is one of the properties acquired from Higab in June.
Interest-bearing liabilities as at 30 June 2021 amounted to SEK 12,013 million (10,850). This corresponds to a loan-tovalue ratio of 49% (48), which is in line with the long-term financial goal for the loan-to-value ratio not to exceed 50% over time. Current interest-bearing liabilities on the balance sheet refer to loans that will be renegotiated within the next twelve months.
Debt financing primarily comprises bank loans secured by mortgages on property. Platzer is also borrowing SEK 1,726 million (1,726) in the form of secured green bonds via Svensk FastighetsFinansiering (SFF). A total of 59% of our outstanding liabilities comprise green financing in the form of green bonds and green loans. Platzer also has a commercial paper programme with a framework amount of SEK 2 billion. Outstanding commercial paper as at 30 June stood at SEK 1,008 million (640).
The average fixed interest term, including the effect of derivatives contracts, was 2.9 years (3.2) as at 30 June. The average fixed-term maturity was 2.2 years (2.3). As at 30 June, the average interest rate, including the effects of derivative instruments, was 1.78% (1.83), excluding unused credit facilities, and 1.91% (1.97) including unused credit facilities.
In order to achieve the desired fixed interest rate structure, we use interest rate swaps. These are recognised at fair value in the balance sheet, while gains/losses are recognised through profit or loss without applying hedge accounting. We have entered into derivatives contracts totalling SEK 5,370 million (5,370).
The market value of the derivatives portfolio as at 30 June 2021 was SEK -144 million (-240), corresponding to a positive change in value of SEK 97 million for the year. Only realised changes in value affect cash flow. During the remaining term of the derivatives, the undervalue will be resolved and will reduce financial expense in the income statement by an equivalent amount.
The financial assets and liabilities that are measured at fair value in the Group comprise the derivative instruments described above. These are classified within Level 2 of the IFRS 13 fair value hierarchy. The market value of derivatives is based on valuations provided by bank. Derivatives are generally valued by discounting future cash flow to present value based on market rates for the respective maturities as quoted at the time of the valuation. The fair value of non-current interest-bearing liabilities is the same as the carrying amount because the discounting effect is not significant when the loan interest rate is variable and in line with market rates.
| Interest maturity | Loan maturity, SEK m | |||||
|---|---|---|---|---|---|---|
| Year | Interest bearing liabilities SEK m |
Average interest, % |
Credit agreements, SEK m |
Used, SEK m |
||
| 0-1 years | 6,352 | 2.55 | 4,526 | 3,826 | ||
| 1-2 years | 391 | 0.87 | 4,202 | 3,152 | ||
| 2-3 years | 250 | 0.08 | 2,850 | 2,850 | ||
| 3-4 years | 770 | 0.87 | 1,058 | 1,058 | ||
| 4-5 years | 500 | 0.82 | - | - | ||
| 5-6 years | 1,000 | 0.94 | - | - | ||
| 6-7 years | 730 | 1.14 | - | - | ||
| 7-8 years | 1,250 | 1.05 | 633 | 633 | ||
| 8-9 years | 450 | 0.67 | 494 | 494 | ||
| 9-10 years | 320 | 1.19 | - | - | ||
| 10+ years | - | - | - | - | ||
| Total | 12,013 | 1.78 | 13,763 | 12,013 |
| SEK million | 2021 Jan-Jun |
2020 Jan-Jun |
2020 Jan-Dec |
2020/2021 Jul-Jun |
|---|---|---|---|---|
| Operating activities | ||||
| Operating surplus | 451 | 436 | 868 | 883 |
| Central administration | -29 | -29 | -53 | -53 |
| Net financial income/expense | -101 | -98 | -200 | -203 |
| Tax paid | -65 | -35 | -30 | -60 |
| Cash flow from operating activities before changes in working capital |
256 | 274 | 585 | 567 |
| Change in current receivables | 22 | -48 | -44 | 26 |
| Change in current liabilities | 53 | 0 | -51 | 2 |
| Cash flow from operating activities | 331 | 226 | 490 | 595 |
| Investing activities | ||||
| Investments in existing investment properties | -410 | -514 | -994 | -890 |
| Acquisitions of investment properties | -900 | - | -395 | -1,295 |
| Disposals of investment properties | - | 225 | 299 | 74 |
| Acquisition/disposal of shares in associates | -38 | - | -35 | -73 |
| Other investments | -10 | -2 | -2 | -10 |
| Cash flow from investing activities | -1,358 | -291 | -1,127 | -2,194 |
| Financing activities | ||||
| Changes in non-current receivables | 12 | -42 | -59 | -5 |
| Change in interest-bearing liabilities | 1,163 | 516 | 817 | 1,464 |
| Change in non-current liabilities | 1 | - | -1 | 0 |
| Dividend | -126 | -120 | -240 | -246 |
| Cash flow from financing activities | 1,050 | 354 | 517 | 1,213 |
| Cash flow for the period | 23 | 289 | -120 | -386 |
| Cash and cash equivalents at the beginning of the period |
148 | 268 | 268 | 557 |
| Cash and cash equivalents at the end of the period | 171 | 557 | 148 | 171 |
Unused overdraft facilities amounted to SEK 100 million (100) and unused credit facilities amounted to SEK 2,130 million (2,840), of which SEK 380 million
(1,130) comprised construction loans. Comparative amounts for unused credit refer to 31 December 2020.
Cash flow from operating activities for the period amounted to SEK 331 million (226). See page 7 for comments on operating activities.
Investments in existing properties amounted to SEK 410 million (514). As at 30 June, the group acquired a property worth SEK 900 million.
Cash flow for the period amounted to SEK 23 million (289). Cash and cash equivalents totalled SEK 171 million (557) as at the balance sheet date.
Platzer's long-term vision is to make Gothenburg the best city in Europe to work in and we have divided up our operations across three focus areas: property development, project development and urban development. These operations comprise everything from individual projects to development of entire blocks and districts.
We currently have major projects underway comprising a total lettable area of 60,000 sq. m. and additionally, we have a project portfolio comprising around 530,000 sq. m. of gross floor area (GFA). The project portfolio comprises all stages, from detailed development plan to ready-to-move into projects.
Despite the challenges presented by the continuing Covid-19 pandemic, we have managed our projects thanks to good preparedness and long-term planning.
Our property Aria (Gullbergsvass 1:1) is located at the entrance to the Lilla Bommen district. The name is a nod to the location opposite the Gothenburg opera house. The property offers great potential for development of modern office premises with service and restaurant areas at ground floor level. In this class A location we offer modern office space in Gothenburg's new commercial centre to high achieving companies. Letting and work on developing the property is currently underway.
We are the driving force behind the positive development taking place in the Gårda district, where both our new build projects, Gårda Vesta (Gårda 2:12) and Kineum (Gårda 16:17), are prominent features. The Swedish Tax Agency moved into Gårda Vesta, which comprises 27,000 sq. m., in the winter, and we will also be welcoming Länsförsäkringar to their new premises in summer 2021. The occupancy rate is 95% and the other tenants due to move in are Aros Kapital, Reijlers and Länsförsäkringar Mäklarservice. Gårda Vesta will complete a cluster of public bodies in north Gårda, where existing major tenants include the Swedish Migration Agency, the Swedish Social Insurance Agency and Gothenburg Region (GR). The project is on schedule and tenants will gradually take occupancy until the project is completed in November 2021. In connection with tenants moving in, work is underway on developing services and restaurants in the area, in order to create a good overall experience for our tenants.
Slightly further south, our other large project, Kineum, has already started to make a positive impression on the skyline with its eye-catching facade. Kineum will house hotel operations, offices and other business activities. During construction, we and NCC each own 50% of the project. NCC will also move its office in Gothenburg to the new building. The largest tenant is ESS Group, which will develop a new hotel comprising around 230 rooms and a total of 15,000 sq. m. in the property. The hotel is in line with our ambition to contribute to the development of the area and to make southern Gårda a destination and vibrant district at all hours of the day and night. The occupancy rate for the project is 82%.
One of Gothenburg's major development areas, Skeppsbron, is home to the venerable Merkur building (Inom Vallgraven 49:1), which we own jointly with Bygg-Göta. Here we are building 5,400 sq. m. of lettable office space adjoining an existing building. The project is in the final stage of fit-out for tenants, which include the advertising agency Forsman & Bodenfors (3,350 sq. m.). Restaurant space on the ground floor will help connect the promenade to Järntorget and Stenpiren.
In the middle of May, the new Hisingsbron bridge was opened and in connection with this, demolition of the old Göta Älv bridge began, marking the start of continued development of Lilla Bommen/Gullbergsvass. The area offers unique opportunities to create an attractive site close to the water, within walking distance of the central railway station and featuring mixed-use development comprising housing, offices and services. Platzer has an option to buy two building rights of a total GFA of 43,000 sq. m. for the site where the Göta Älv bridge is currently located. Preliminary construction start for the project is planned in the third quarter of 2022.
Torslanda and Arendal are the best logistics location in Sweden. Here our approach is an overall plan for the whole area, including building rights under the detailed development plan for around 200,000 sq. m. GFA of logistics and industrial facilities.
Arendal has been chosen as a test site for an autonomous transport solution from Volvo. The project is a collaboration between Platzer, Volvo, DFDS, APM Terminals and the Port of Gothenburg. We have also concluded agreements with the restaurant operators Rolf Tsoi and Magnus Söderström, who will be establishing a new restaurant destination in the area.
At Syrhåla 3:1 in Torslanda we concluded agreements with two customers on construction of new buildings. One is a 13,950 sq. m. terminal and warehouse facility for logistics services provider NTEX. We concluded a 10-year lease with green appendix and construction is planned to start in the third quarter of 2021 with occupancy scheduled for April 2023. The other is a 20,000 sq. m. industrial and logistics facility for Volvo Cars. Here too we concluded a ten-year lease with green appendix. Construction is planned to start in the second quarter of 2022 with occupancy scheduled for 2023.
In Torslanda we have building rights for approximately 190,000 sq. m. GFA at the properties Syrhåla 2:3, Syrhåla 3:1, Sörred 7:21 and Sörred 8:12.
Arendal and Torslanda are the best logistics location in Sweden. Here our approach is an overall plan for the whole area, including building rights under the detailed development plan for around 200,000 sq. m. GFA of logistics and industrial facilities. Arendal has been chosen as a test site for an autonomous transport solution from Volvo. The project is a collaboration between Platzer, Volvo, DFDS, APM Terminals and the Port of Gothenburg.
17 Platzer Q2 2021
Merkur Aria
Platzer is to build a 13,950 sq. m. terminal and warehouse facility for logistics services provider NTEX.
Our joint venture with Bockasjö is also part of our plans for development of this area. We began our cooperation in April 2020 via a joint venture, Sörreds Logistikpark Holding AB, which comprises the properties Sörred 8:12 and 7:21. Groundworks have begun, in order to cut the lead time from construction start to building ready for occupancy.
Gamlestaden is a district undergoing transformation, just one tram stop away from Gothenburg city centre. In the next ten years, the area will be developed to take on more of an urban character, featuring a mixture of housing and businesses.
We own three large properties and projects in Gamlestaden. In autumn 2018, the property Gamlestads torg (Gamlestaden 740:132) was finished. In March 2021, the detailed development plan for the adjacent property Gamlestadens Fabriker (Olskroken 18:7) became legally binding. The project is now entering a new phase, involving development of our building rights. We have previously concluded an agreement on the sale of future building rights for housing to JM, which is participating in the development of the area.
For the neighbouring property (Bagaregården 17:26), we have received a positive planning decision concerning densification of a total of 60,000 sq. m and we are now collaborating with the city to create favourable conditions for future development of the area in the coming detailed development plan.
We are developing northern Högsbo as Södra Änggården – a vibrant urban district with 2,000 housing units, schools and commercial premises. In April 2020, the City Council gave the go-ahead for adoption of the detailed development plan. We are now waiting for a final decision by the Land and Environment Court of Appeal, in autumn 2021, before the plan can become legally binding.
We have previously signed a lease with Internationella Engelska Skolan (IES) for a new school in the area. The lease is for 20 years and comprises approx. 9,000 sq. m. A condition of the deal is that the detailed development plan becomes legally binding, and preliminary completion of the lease is scheduled for the second half of 2023.
Almedals Fabriker (Skår 57:14) is a former industrial district located alongside the Mölndalsån river, just south of Liseberg. Today, the area contains a number of smaller businesses, many of which relate to the creative arts. Platzer owns Almedals Fabriker with potential building rights for around 25,000 sq. m. of office space. The City of Gothenburg has chosen Almedals Fabriker as one of five pilot projects in which developers are more involved in the process of creating a detailed development plan. The aim is to reduce the total time spent on the project. The detailed development plan process, which is being jointly managed by Platzer, Svenska Hus, Wallenstam and the City of Gothenburg, is ongoing.
| Property | Type1) | Redeveloped area, lettable area, sq. m. |
New area, lettable area, sq. m. |
Total investment incl. land, SEK m2) |
Outstanding investment, SEK m |
Fair value, SEK m |
Rental value, SEK m3) |
Occupancy | rate, % Finished |
|---|---|---|---|---|---|---|---|---|---|
| Gårda 2:12, Gårda Vesta | Project Dev. | - | 27,000 | 1,193 | 158 | 1,471 | 83 | 95 | Q4 2021 |
| Gårda 16:17, Kineum | Project Dev. /Property Dev. |
16,000 | 26,000 | 2,012 | 506 | 1,936 | 137 | 82* | Q3 2022 |
| Gullbergsvass 1:1, Aria | Property Dev. | 15,483 | 1,123 | 270 | 859 | 59 | 46* | Q3 2023 | |
| Total | 31,483 | 53,000 | 4,328 | 934 | 4,266 | 279 |
| Property | Type1) | Redevel oped area lettable area, sq. m. |
New area, lettable area, sq. m. |
Total invest ment incl. land, SEK m2) |
Outstanding investment, SEK m |
Fair value, SEK m |
Rental value, SEK m3) |
Occupancy rate, % |
Completed |
|---|---|---|---|---|---|---|---|---|---|
| Inom Vallgraven 49:1, Merkur** |
Project Dev. | 5,400 | 270 | 69 | 258 | 18 | 62 | Q4 2021 | |
| Sörred 8:12*** | Project Dev. | 362 | 73 | 289 | Q4 2021 | ||||
| Sörred 7:21*** | Project Dev. | 78 | 18 | 60 | Q3 2022 | ||||
| Total | 5,400 | 710 | 160 | 607 | 18 |
| Property | Type1) | Type of property | New area | GFA sq. m. Project phase | Possible construction start4) |
|---|---|---|---|---|---|
| Syrhåla 3:1 | Project Dev. | logistics/industry | 40,000 | detailed development plan adopted |
2021 |
| Arendal 764:720, Arendals kulle | Project Dev. | logistics/industry | 14,000 | detailed development plan adopted |
2021 |
| Olskroken 18:7, Gamlestadens Fabriker | Urban Dev./ Project Dev./ Property Dev. |
mixed use development |
100,000-120,000 | detailed development plan adopted |
2021 |
| Södra Änggården (multiple properties and multiple development phases) |
Urban Dev./ Project Dev. |
mixed use development |
approx. 200,000 | detailed development plan in progress |
2021 |
| Krokslätt 34:13 | Property Dev./ Project Dev. |
offices | 10,000-15,000 | planning decision taken | 2022 |
| Skår 57:14, Almedals Fabriker | Property Dev./ Project Dev. |
offices | 25,000 | detailed development plan in progress |
2022 |
| Syrhåla 2:3 | Project Dev. | logistics/industry | 14,600 | detailed development plan adopted |
2022 |
| Lilla Bommen/Gullbergsvass **** | Project Dev. | offices | 43,000 | detailed development plan adopted |
2022/2023 |
| Bagaregården 17:26 | Urban Dev./ Project Dev./ Property Dev. |
mixed use development |
60,000 | detailed development plan in progress |
2023/2024 |
* The occupancy rate also includes existing building.
company owns or has agreed to acquire.
** Refers only to new construction in conjunction with existing investment property. *** Groundworks project via JV with Bockasjö, Sörreds Logistikpark, 130,000 sq. m.
lettable area. **** Platzer does not currently own the land but has an option to acquire the land together
with building rights at the market rate The summary includes potential projects that have been identified for properties that the
1) See explanation below.
2) The total investment including land value of property development project includes the value on acquisition of existing building and planned investment.
3) Refers to estimated rental value when the building is finished and fully let.
4) Possible construction start means when it is estimated the project could start, provided that planning work proceeds as expected and pre-letting has reached a satisfactory level.
Property development involves the refurbishment or development of an existing building. The purpose may be to adapt the property for an existing tenant or to attract new tenants.
Project development refers to new production from the ground up, with no existing building, and we manage the process from idea through to finished building.
Urban development means that we take long-term responsibility for an area, often in collaboration with others. We contribute to attractive urban environments and increased property values. Sometimes we develop residential building rights which are sold to cooperation partners.
| 2021 Jan-Jun |
2020 Jan-Jun |
2020 Jan-Dec |
2020/2021 Jul-Jun |
|
|---|---|---|---|---|
| Financial | ||||
| Debt/equity ratio (multiple) | 1.2 | 1.2 | 1.1 | 1.2 |
| Interest coverage ratio (multiple) | 4.2 | 4.0 | 4.1 | 4.1 |
| Loan-to-value ratio, % | 49 | 50 | 48 | 49 |
| Equity/assets ratio, % | 41 | 40 | 42 | 41 |
| Return on equity, % | 10.7 | 9.4 | 15.1 | 16.6 |
| Property-related | ||||
| Investment yield, % | 3.8 | 4.2 | 4.0 | 3.9 |
| Surplus ratio, % | 77 | 76 | 76 | 76 |
| Economic occupancy rate, % | 91 | 94 | 93 | 92 |
| Rental value, SEK/sq. m. | 1,570 | 1,530 | 1,536 | 1,544 |
| Lettable area, sq. m., thousand* | 841 | 814 | 821 | 841 |
For definitions and calculations of Key Performance Indicators, please see pages 28-29.
* Lettable area including associates 847,000 sq. m.
| 2021 | 2020 | 2019 | ||||||
|---|---|---|---|---|---|---|---|---|
| SEK million | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 |
| Rental income | 296 | 293 | 281 | 289 | 286 | 285 | 282 | 289 |
| Property costs | -68 | -71 | -78 | -61 | -66 | -69 | -70 | -78 |
| Operating surplus | 229 | 222 | 203 | 228 | 220 | 216 | 212 | 211 |
| Central administration | -14 | -15 | -14 | -10 | -15 | -15 | -15 | -9 |
| Share of profit of associates | 35 | 9 | -5 | 24 | 16 | 31 | 1 | 6 |
| Net financial income/expense | -52 | -49 | -51 | -51 | -49 | -49 | -45 | -47 |
| Income from property management (incl. associates) |
198 | 167 | 133 | 191 | 172 | 183 | 153 | 161 |
| Change in value, investment properties | 317 | 183 | 253 | 293 | 11 | 449 | 406 | 369 |
| Change in value, financial instruments | 7 | 90 | 34 | 7 | -36 | -94 | 172 | -89 |
| Change in value, financing arrangements | 1 | 16 | 74 | - | - | - | - | -1 |
| Profit before tax | 523 | 456 | 494 | 491 | 147 | 538 | 731 | 440 |
| Tax on profit for the period | -107 | -91 | -83 | -103 | -2 | -109 | -165 | -90 |
| Profit for the period | 416 | 365 | 411 | 388 | 145 | 429 | 566 | 350 |
| Investment properties | 24,386 | 22,969 | 22,575 | 22,150 | 21,203 | 21,127 | 20,479 | 20,116 |
| Investment yield, % | 3.9 | 3.9 | 3.6 | 4.3 | 4.2 | 4.2 | 4.2 | 4.3 |
| Surplus ratio, % | 77 | 76 | 72 | 79 | 77 | 76 | 75 | 73 |
| Economic occupancy rate, % | 91 | 91 | 92 | 92 | 94 | 94 | 95 | 94 |
| Return on equity, % | 8.8 | 7.7 | 7.4 | 9.1 | 5.7 | 9.8 | 11.5 | 9.2 |
| Equity per share. SEK | 84.62 | 83.90 | 80.23 | 76.83 | 73.59 | 74.39 | 70.84 | 66.14 |
| Long-term net asset value (EPRA NRV) per share, SEK |
101.38 | 99.39 | 96.35 | 92.21 | 88.34 | 89.02 | 84.00 | 80.02 |
| Share price, SEK | 129.80 | 103.80 | 107.40 | 93.00 | 79.50 | 70.70 | 110.00 | 96.20 |
| Earnings after tax per share, SEK | 3.47 | 3.03 | 3.40 | 3.24 | 1.20 | 3.56 | 4.69 | 2.87 |
| Operating cash flow per share, SEK | 1.90 | 0.86 | 0.34 | 1.86 | 0.99 | 0.89 | 1.94 | 1.14 |
The Parent Company does not own any properties of its own, but instead manages certain groupwide functions relating to management, strategy and financing. Parent Company revenue consists entirely of invoicing for services to Group companies.
| SEK million | 2021 Jan-Jun |
2020 Jan-Jun |
2020 Jan-Dec |
|---|---|---|---|
| Net sales | 9 | 8 | 15 |
| Operating expenses | -9 | -9 | -15 |
| Net financial income/expense | 39 | -24 | 696 |
| Change in value, financial instruments | 97 | -130 | -89 |
| Profit before tax and appropriations | 136 | -155 | 607 |
| Appropriations | - | - | 9 |
| Tax | -29 | 26 | 18 |
| Profit for the period 1) | 107 | -129 | 634 |
1) The Parent Company has no items of other comprehensive income and total comprehensive income is therefore the same as profit for the period.
| SEK million | 30 Jun 2021 | 30 Jun 2020 | 31 Dec 2020 |
|---|---|---|---|
| Assets | |||
| Participations in Group companies | 1,886 | 1,886 | 1,886 |
| Other non-current financial assets (primarily financing of Group companies) | 3,258 | 2,229 | 2,714 |
| Receivables from Group companies | 5,307 | 3,665 | 5,250 |
| Other current assets | 12 | 3 | 15 |
| Cash and cash equivalents | 13 | 19 | 9 |
| Total assets | 10,476 | 7,802 | 9,874 |
| Equity and liabilities | |||
| Equity | 2,963 | 2,345 | 3,109 |
| Untaxed reserves | 20 | 41 | 20 |
| Non-current liabilities | 3,751 | 1,255 | 2,255 |
| Liabilities to Group companies | 3,598 | 2,718 | 3,778 |
| Current liabilities | 144 | 1,443 | 712 |
| Total equity and liabilities | 10,476 | 7,802 | 9,874 |
As at 30 June, the number of employees stood at 87 (86 at 31 December 2020).
Our operations are divided into business areas based on segments:
Business area Offices – will build on its current position as the market leader to continue to create profitable growth in office space.
Business area Industrial/Logistics – its goal is to make Platzer the leading commercial property company in Gothenburg in industrial and logistics property. Each business area has overall responsibility for the property operations within their respective business areas. These operations consist of managing the land, buildings and relationships with tenants, which includes renegotiation, letting and development of every property and adjacent area. The employees within each business area are responsible for daily management, operation and maintenance, letting and project management of property-led projects and tenant-specific adaptations.
Our Group management comprises managers responsible for the following functions: operations development, business development, finance/accounting/property analysis, communication/marketing, HR, business area Offices and business area Industrial/Logistics.
Impact of Covid-19
We are keeping a close eye on developments as a result of the coronavirus pandemic, and are engaged in an ongoing dialogue with our stakeholders. The assessment is that the business is exposed to an increased risk of losing customers, particularly tenants in vulnerable industries. In order to prevent customer attrition, we are helping vulnerable tenants with liquidity, primarily by agreeing to monthly payments instead of quarterly payments.
In the event of an even more drawn-out pandemic, rent levels and property values could fall, and this in turn could impact future financing opportunities and financing costs. Should demand for commercial property fall drastically in the future, our view is that this would also affect our ongoing development projects.
So far, the coronavirus crisis has not caused us to reconsider or change course in our ongoing major projects or potential development projects.
The property business, as all business, is always exposed to risks. We manage and reduce risks through good internal control and external control by auditors, well-functioning administrative systems and policies, as well as tried and tested procedures for property valuations.
The largest financial risk is access to financing, which is a prerequisite for operating a property business. Good relationships with the banks limit financial risk, while access to capital markets and underlying strong financials and key ratios limit risk even further. The main risks and uncertainty factors that affect Platzer did not change in the period and they are described in detail in the Annual Report for 2020 on pages 78-82 and 95-96.
The company's ongoing related party transactions are described in the Annual Report for 2020, page 110. There are no significant transactions with related parties apart from these agreements.
Platzer prepares its consolidated financial statements in accordance with IFRS (International Financial Reporting Standards) as adopted by the EU. The same accounting policies and measurement principles have been applied as in the most recent Annual Report. The Interim Report has been prepared in accordance with IAS 34, Interim Financial Reporting.
The Parent Company applies the Swedish Annual Accounts Act and the Swedish Financial Reporting Board's Recommendation RFR2 Accounting for Legal Entities.
New standards for 2021 have not yet been approved. Other new and amended standards from IFRS with future application dates are not expected to have a significant effect on the Group's financial statements.
Individual amounts and total amounts are rounded to the nearest whole number in SEK million. Rounding differences may result in notes and tables not adding up.
No significant events have taken place after the end of the period.
Gothenburg, 6 July 2021
Platzer Fastigheter Holding AB (publ)
P-G Persson CEO
This interim report has not been reviewed by the company's auditors.
The recovery in the global economy has been quicker than expected and GDP in the world is expected to grow by 5.5% in 2021. The recovery has to a large extent been driven by the USA, where the rapid vaccination rollout and an expansive financial policy has resulted in larger than expected growth.
The Swedish economy has also recovered well in the wake of the pandemic. Despite a lower than expected vaccination rate, Sweden's GNP is expected to grow by 3.7% in 2021 and by 3.4% in 2022. The healthy growth rate is largely driven by a strong export industry. Thanks to the rapid recovery, the negative effects on the Swedish labour market will be less severe than feared. The unemployment rate is expected to be 8.6% at the end of 2021, falling to 7.7% in 2022.
The Gothenburg region continues to be a major driver of the Swedish economy. When global demand is rising, the Swedish export industry is booming. Region Västra Götaland accounts for just over 16% of Sweden's total exports and 8% of Sweden's export companies are based in Gothenburg. The automotive industry accounts for the majority of the region's goods exports and companies such as Volvo Cars are continuing to reports record sales. In the first quarter of the year, the company's sales in the European market increased by 24%, while its sales in the Chinese market rose grew by 117% compared with the same period in the previous year.
The economic tendency indicator for business in the Gothenburg region continued to rise in the first quarter, reaching 107.5, and is now in the normal strong position.
In May, unemployment in the Gothenburg region was 7.3%, the lowest of three metropolitan areas and well below the national unemployment rate of 8.1%. At the same time, the number of redundancy notices fell to a record low level, down by 95% compared with the same period in the previous year and also one of the lowest levels recorded in the 2000s.
| Vacancy rate, % | ||||
|---|---|---|---|---|
| Area | Q1 2021 | Q1 2020 | ||
| CBD | 6.5 | 4.2 | ||
| City centre excl. CBD | 8.7 | 4.2 | ||
| Norra Älvstranden | 4.7 | 1.1 | ||
| Hisingen, other | 13.8 | 7.0 | ||
| Mölndal | 20.3 | 20.8 | ||
| West Gothenburg | 11.7 | 12.5 | ||
| East Gothenburg | 14.4 | 14.9 | ||
| Total | 9.5 | 7.0 |
However, there are still large differences in the economic situation between the different industry sectors in the region. The restaurant sector is still under severe pressure, although many players see the easing of restrictions introduced at the beginning of June as a positive sign, with, for instance, the tourist attraction Liseberg being able to reopen. Hotel operators with a large proportion of private visitors are reporting a good level of bookings for the summer. The number of visitor nights in Västra Götaland region in April were up by nearly 95% on the same period in the previous year. Other industry sectors reported an improvement already in the last few months of last year, as the regional economy moved from recession to a more normal situation.
This year has got off to a strong start and lettings volume in the first three months of the year amounted to 39,000 sq. m., which is the highest figure for this period since 2016.
At the end of the first quarter, the vacancy rate in Gothenburg was 9.5%, an increase of 2.5 percentage points on the same period in the previous year. The increase corresponds to around 80,000 sq. m. The increase was largely
Trade and industry economic indicator in the Gothenburg region
due to the fact that new office space of around 73,000 sq. m. was created in the period, while large tenants such as
e.g. the Swedish Tax Agency and Swedish Customs have moved to premises offering better space efficiency.
The office market is facing a major restructuring, where the importance and future of the office is the subject of much discussion in both board rooms and the media. The pandemic has highlighted the need for social interaction and opportunity for creative teamwork, and the role of the office as a meeting place rather than as a place for concentrated work is becoming increasingly clear. We are not currently seeing a decline in demand for office space as a result of the pandemic, but the layout and location of the office is becoming increasingly important, both as a marker of identity and for creating a culture. Platzer's properties are in good locations in the various districts, in close proximity to both services and public transport.
Rent levels in Gothenburg are considered to be stable. However, some areas of the market may see some changes in rent levels as new production comes on stream and new rent levels are established. The large volume of office space coming on stream in the next few years is expected to suppress the increase in prime rent in Gothenburg. In the medium to long term, there are factors that will benefit the Gothenburg office rental market, such as a growing population in Gothenburg and the region, restructuring of the labour market towards jobs requiring offices, completion of infrastructure projects that will facilitate access to a larger labour market, and increased growth in the Swedish economy.
In the past year we have seen how sensitive global goods flows are to disruption such as the pandemic and the accident in the Suez canal. In companies that previously depended on a well-functioning just-in-time flow this has triggered discussions on creating more back-up warehouse
| Prime Rent (SEK/sq. m.) | Q1 2021 | Q1 2020 | |
|---|---|---|---|
| CBD | 3,700 | 3,700 | |
| City centre excl. CBD | 2,800 | 2,800 | |
| Norra Älvstranden | 2,800 | 2,800 | |
| Hisingen, other | 2,000 | 2,000 | |
| Mölndal | 2,000 | 2,000 | |
| West Gothenburg | 1,200 | 1,200 | |
| East Gothenburg | 2,500 | 2,500 |
facilities to be able to better cope with disruptions in the supply chain.
At the same time, e-commerce rose by more than 40% in 2020, compared with the previous year, accounting for 14% of total retail sales. In the first quarter of 2021, e-commerce sales grew by 53% compared with the same period in the previous year. The largest increase was in convenience goods sales, which grew by as much as 109%.
The pandemic has brought forward a transformation that has been taking place for several years and it is now estimated that e-commerce in the Nordic region will account for 30% of total retail sales as early as 2024. Previous experience shows that when e-commerce approaches 15% in an individual segment, brick-and-mortar retail starts to experience profitability problems.
The supply of modern logistics facilities remains low and vacancy rates are close to non-existent. This, combined with the fact that demand for modern logistics facilities is at its highest level since 2008, according to a survey carried out by Cushman & Wakefield, means that the conditions are good for a stable rental market. At the same time, in the Gothenburg area there is still a good supply of land for which a detailed development plan has been adopted and which is owned by a number of smaller players. This is expected to result in a wait-and-see approach in respect of rents.
In the Gothenburg area the main logistics locations are in Hisingen, which has connections to the Volvo companies, the port and the E6 motorway, which is an important link in the flow of goods from the continent up towards Norway. Other important logistics locations include the area around Landvetter airport and, slightly further afield, Viared, outside Borås. The latter has close links to e-commerce and Borås was historically a centre for the mail order industry. In March 2021, DFDS announced that it would build a 35,000 sq. m. warehouse in Viared. Other stakeholders obtaining warehouse facilities include the Italian white goods manufacturer Smeg, which has leased 6,500 sq. m. in Malmö and the Finnish wheel and tyre wholesaler
| Prime Rent (SEK/sq. m.) | 2020 | 2019 | 2018 |
|---|---|---|---|
| Stockholm Class A location | 900 | 850 | 850 |
| Stockholm Class B location | 680 | 670 | 670 |
| Gothenburg Class A location | 680 | 675 | 675 |
| Gothenburg Class B location | 600 | 600 | 600 |
| Malmö Class A location | 650 | 650 | 650 |
| Malmö Class B location | 450 | 455 | 455 |
Vannetukku, which is building an 11,000 sq. m. warehouse in Eskilstuna. Postnord is building a new 22,000 sq. m. postand parcel terminal in Norrköping.
At the same time, in the second quarter of the year Platzer conclude leases with Ntex and VCC (Volvo Cars Corporation) for 13,950 and 20,000 sq. m. each of newly produced logistics space at Syrhåla 3:1.
In the first five months of the year, just over SEK 600 million worth of office property changed hands in the Gothenburg area, corresponding to just under half of transaction volume in the previous year. The decrease was largely due to the fact that nearly all market operators are net buyers, meaning few assets are being offered for sale.
In the first quarter of the year, Skanska acquired three properties in north Gårda from Fastighets AB L E Lundberg for the purpose of developing the block in the coming detailed development plan process. This can be seen as proof of the increasing attraction of Gårda, and we are among the stakeholders who have contributed to this through large investments in property and urban development. In June, Niam acquired an office property and associated parking garage in Torslanda from Torslanda Property Invest. The property was sold for SEK 870 million and is fully let to Volvo Cars. In the period, Platzer sold the properties Sörred 8:11 and Sörred 7:24 to VCC, which entered into a long lease for newly produced logistics space in the Torslanda area as part of the deal. The net sales value was SEK 304 million. In June, Platzer acquired three properties with a total floor area of more than 50,000 sq. m. at Campus Medicinareberget from Higab in a transaction worth SEK 1,875 million.
We have not seen any major adjustments in yield requirements in the segment. Centrally located office properties with secure cash flows are expected to remain in demand also in the future. We therefore estimate that yield requirements for these properties will remain at the current levels. We are also seeing a increase in large mergers and acquisitions, such as Corem's public offer to Klövern's
shareholders, which was accepted in the second quarter.
The previous financial year was another strong year for transactions in the industrial and logistics property segment, which also was the third largest segment after residential property and social infrastructure. This was the second consecutive year that transaction volume in this segment exceeded SEK 30 billion.
In the first five months of 2021, the volume of transactions at national level was SEK 14.8 billion (6.8). The second largest transaction in the Gothenburg area was Baring's acquisition of Sörred Kubiklager from Skanska for SEK 265 million in January. In June, Tritax EuroBox of the UK announced the acquisition of the logistics property Arendal 1:16 at an underlying property value of SEK 474 million.
As in previous years, the segment has a large proportion of international investors. For example, Blackstone carried out a large acquisition of eight warehouse and logistics facilities throughout Sweden in a transaction which valued the underlying properties at SEK 2.3 billion. Increased demand as a result of growth in e-commerce and a strong rental market means logistics property continues to be an attractive segment. Demand for logistics facilities is also reflected in the fact that yield requirements in recent years have fallen by around 2.0 percentage points and are currently at around 4.0% for newly built logistics facilities in prime locations such as Torslanda and Arendal.
In 2020, the coronavirus pandemic brought forward the shift from physical retail to e-commerce. In Europe there is talk of yield requirements of a little below 4.0% for logistics facilities in central locations. In Sweden, we believe yield requirements will continue to fall to under 4.0% in the near future, while transaction volumes will remain high in the future too.
| Prime Yield (%) | Q1 2021 | Q1 2020 |
|---|---|---|
| CBD | 4.00 | 4.00 |
| City centre excl. CBD | 4.25 | 4.25 |
| Norra Älvstranden | 4.25 | 4.25 |
| Hisingen, other | 5.50 | 5.50 |
| Mölndal | 5.75 | 5.75 |
| West Gothenburg | 6.50 | 6.50 |
| East Gothenburg | 5.00 | 5.00 |
| Yield (%) | 2020 | 2019 | 2018 |
|---|---|---|---|
| Stockholm Class A location | 4.55 | 4.65 | 5.00 |
| Stockholm Class B location | 5.50 | 6.00 | 6.25 |
| Gothenburg Class A location | 4.55 | 4.65 | 5.00 |
| Gothenburg Class B location | 5.60 | 6.00 | 6.25 |
| Malmö Class A location | 5.00 | 5.40 | 5.75 |
| Malmö Class B location | 6.50 | 6.75 | 7.00 |
Lettings market and Property market for Offices Source: JLL Lettings market and Property market for Logistics Source: Newsec
Platzer's shares have been listed on Nasdaq Stockholm since November 2013. Since January 2021, the shares are traded on the Large Cap segment. The company's share price at 30 June 2021 was SEK 129.80 per share, corresponding to a market capitalisation of SEK 15.552 million based on the number of outstanding shares. During the first half of the year, a total of 11.8 million (16.3) shares, worth a total of SEK 1,325 million (1,375), changed hands. Average daily turnover was around 94,800 (132,000) shares.
Platzer's share capital as at the balance sheet date amounted to SEK 11,993,429, divided between 20,000,000 Class A shares carrying 10 votes per share, and 99,934,292 Class B shares carrying one vote per share. Each share has a quotient value of SEK 0.10. Platzer's holding of own shares comprises 118,429 Class B shares.
In connection with the listing in November 2013, the company carried out a new issue of shares priced at SEK 26.50 each, which raised SEK 651 million net of issue costs.
The most recent change in share capital took place in the fourth quarter of 2016, when Platzer carried out a SEK 718 million rights issue in which the shares were priced at SEK 30 each.
The long-term policy is to pay a dividend of 50% of adjusted income from property management after tax (20.6% flatrate tax in 2021). Adjusted income from property management is income from property management attributable to the Parent Company's shareholders, excluding changes in the value of associates. The AGM on 31 March approved a dividend of SEK 2.10 per share (2.00), to be paid in two instalments of SEK 1.05 each. The record dates are 6 April and 5 October.
The number of shareholders as at 31 May stood at 5,614 (6,680). Foreign ownership amounted to 8.4% of equity. Platzer's Articles of Association include a pre-emptive rights clause, which states that a buyer of Class A shares, who did not previously own Class A shares, must offer other holders of Class A shares the right of first refusal, unless this acquisition took place through an intra-Group transfer or equivalent within any of the current groups of shareholders. If the holders of Class A shares do not take up this right of first refusal, the transferred shares will automatically be converted into B shares before the acquiring party is entered in the shareholders' register.
Platzer's primary information channel is the website platzer.se. All press releases and financial reports are published here. Press releases and reports can be obtained by email in connection with publication. The website also includes presentations, general information about the share and reports on corporate governance and financial data.
| Name | Number of Class A shares |
Number of Class B shares |
Number of shares |
Share of votes, % |
Share of equity, % |
|---|---|---|---|---|---|
| Ernström & C:o | 11,000,000 | 5,500,000 | 16,500,000 | 38.5 | 13.8 |
| Länsförsäkringar Göteborg och Bohuslän | 5,000,000 | 15,075,112 | 20,075,112 | 21.7 | 16.8 |
| LF Skaraborg Förvaltning AB | 4,000,000 | 968,000 | 4,968,000 | 13.7 | 4.1 |
| Family Hielte/Hobohm | 18,362,312 | 18,362,312 | 6.1 | 15.3 | |
| Länsförsäkringar fondförvaltning AB | 12,971,612 | 12,971,612 | 4.3 | 10.8 | |
| Fourth Swedish National Pension Fund | 11,340,653 | 11,340,653 | 3.8 | 9.5 | |
| SEB Investment Management | 5,614,555 | 5,614,555 | 1.9 | 4.7 | |
| Lesley Invest (incl. private holdings) | 4,030,562 | 4,030,562 | 1.3 | 3.4 | |
| State Street Bank and Trust Co | 2,206,125 | 2,206,125 | 0.7 | 1.8 | |
| Third Swedish National Pension Fund | 1,947,805 | 1,947,805 | 0.6 | 1.6 | |
| Other shareholders | 21,799,127 | 21,799,127 | 7.3 | 18.2 | |
| Total number of shares outstanding | 20,000,000 | 99,815,863 | 119,815,863 | 100.0 | 100.0 |
| Buyback of own shares | 118,429 | 118,429 | |||
| Total number of registered shares | 20,000,000 | 99,934,292 | 119,934,292 |
| 2021 Jan-Jun |
2020 Jan-Jun |
2020 Jan-Dec |
2020/2021 Jul-Jun |
|
|---|---|---|---|---|
| Equity, SEK | 84.62 | 73.59 | 80.23 | 84.62 |
| Long-term net asset value (EPRA NRV), SEK | 101.38 | 88.34 | 96.35 | 101.38 |
| Share price at the end of the period, SEK | 129,80 | 79.50 | 107.40 | 129,80 |
| Profit after tax, SEK 1) | 6.49 | 4.75 | 11.40 | 13.13 |
| Income from property management, SEK 2) | 2.63 | 2.58 | 5.35 | 5.40 |
| Cash flow from operating activities, SEK | 2.76 | 1.89 | 4.09 | 4.97 |
| Dividend, SEK | - | - | 2.10 | - |
| Number of shares as at the balance sheet date, thousand | 119,816 | 119,816 | 119,816 | 119,816 |
| Average number of shares, thousand | 119,816 | 119,816 | 119,816 | 119,816 |
For definitions and calculations of Key Performance Indicators, please see pages 28-29.
1) There is no dilution effect as there are no potential shares.
Refers to result attributable to Parent Company's shareholders.
2) Income from property management excluding changes in value attributable to associates.
Refers to income from property management attributable to Parent Company's shareholders.
Platzer applies ESMA guidelines on alternative performance measures. The company discloses some financial performance measures in its interim report which are not defined in IFRS. The company believes that these measures provide valuable supplementary information to investors and the company management since they facilitate evaluation of the company's performance. Because not all companies calculate financial measures in the same way, these are not always comparable with measures used by other companies. These financial measures should therefore not be viewed as a replacement for measures defined in accordance with IFRS. The table below presents the alternative performance measures considered relevant. Platzer uses the alternative performance measures debt/equity ratio, interest coverage ratio, loan-to-value ratio, equity/assets ratio and return on equity because these are considered to provide readers of the report with relevant
supplementary information to enable them to assess the potential for dividends and strategic investments and also to assess the company's ability to meet its financial commitments. In addition, the company uses the key indicators investment yield and surplus ratio, which are measures that are considered to be relevant to investors who want to understand how the company generates results. As a listed company, Platzer has also opted to use key performance indicators per share that are relevant to the industry sector, such as long-term net asset value (EPRA NAV).
The key performance indicators are based on statements of income, financial position, changes in equity and cash flow. In the event that the key ratios cannot be directly derived from the above statements, the basis for and method by which these ratios are calculated are shown below.
| Alternative Performance Measures | Definition and calculation |
|---|---|
| Return on equity | Profit after tax as a percentage of average equity, converted into an annual figure for interim periods. Attributable to Parent Company's shareholders. See next page for calculation. |
| Loan-to-value ratio | Interest-bearing liabilities divided by the value of properties (including the value of properties under the heading assets held for sale). |
| Investment yield | Operating surplus as a percentage of the average value of investment and project properties, as well as properties recognised as held-for-sale assets; annualised amount given for interim periods. See next page for calculation. |
| Economic occupancy rate * | Rental income as a percentage of rental value. |
| Property costs | Direct property costs, including running costs, maintenance costs and property tax, as well as indirect costs such as letting and property administration. |
| Rental income | Rents charged, including discounts and supplements, such as reimbursement of utility costs and property tax. |
| Rental value | Rental income plus the estimated market rent of vacant premises (in their existing condition). |
| Rental value, SEK/sq. m.* | Rental value divided by lettable area at the end of the period. The rental value is converted into an annual figure for interim periods. |
| Rent increase, renegotiated leases | The increase in rent is calculated by comparing the previous rent with the new rent as per the new lease agreement. Rent is defined according to the same model as for new leases and terminated leases, see definition of Net lettings. |
| Investment gain | (Market value when completed – Investment including any cost on acquisition) / The investment |
| Long-term net asset value (EPRA NRV) |
Equity according to the balance sheet, including reversals of interest rate derivatives and deferred tax, divided by the number of outstanding shares at the end of the period. Attributable to Parent Company's shareholders. See next page for calculation. |
| Net lettings | Rental income from leases signed during the period, less rental income from leases terminated in the period, with occupancy/vacation within 18 months. All discounts are included for new leases and are annualised on the basis of the lease term. |
| Key performance indicators per share: Equity, Long-term net asset value, Profit after tax, Income from property manage ment, Cash flow from operating activities |
Equity and long-term net asset value are calculated on the basis of the number of outstanding shares as at the balance sheet date. Other key performance indicators per share are calculat ed on the average number of outstanding shares. Profit after tax refers to profits attributable to the Parent Company's shareholders (definition according to IFRS). Income from property management is calculated excluding changes in value attributable to associates. |
| Interest coverage ratio | Result after financial income divided by interest expense. Excluding realised changes in the val ue of derivatives and changes in value attributable to associates. See next page for calculation. |
| Debt/equity ratio | Interest-bearing liabilities divided by equity |
| Equity/assets ratio | Equity divided by total assets. |
| Surplus ratio | Operating surplus as a percentage of rental income. |
* These key performance indicators are operational and are not considered to be alternative performance measures according to ESMA guidelines.
| 2021 Jan-Jun |
2020 Jan-Jun |
2020 Jan-Dec |
2020/2021 Jul-Jun |
|
|---|---|---|---|---|
| Interest coverage ratio (multiple) | ||||
| Operating surplus | 451 | 436 | 868 | 883 |
| Central administration | -29 | -30 | -54 | -53 |
| Interest income | 0 | 0 | 0 | -5 |
| Total | 422 | 406 | 814 | 830 |
| Interest expense | -101 | -98 | -200 | -203 |
| 4.2 | 4.0 | 4.1 | 4.1 | |
| Return on equity, % | ||||
| Attributable to the Parent Company's shareholders: | ||||
| Profit after tax | 1,365 | 1,557 | ||
| Income from property management (annualised) | 730 | 706 | ||
| Change in value, investment properties | 500 | 458 | ||
| Change in value, financial instruments | 114 | -130 | ||
| Total after tax | 1,057 | 813 | 1,365 | 1,574 |
| Average equity | 9,876 | 8,652 | 9,050 | 9,478 |
| 10.7 | 9.4 | 15.1 | 16.6 | |
| Long-term net asset value (EPRA NRV), SEK | ||||
| Attributable to the Parent Company's shareholders: | ||||
| Equity | 10,139 | 8,817 | 9,612 | 10,139 |
| Reversal of deferred tax | 1,864 | 1,487 | 1,692 | 1,864 |
| Reversal of interest rate derivatives | 144 | 280 | 240 | 144 |
| Total | 12,147 | 10,584 | 11,544 | 12,147 |
| Number of shares, thousand | 119,816 | 119,816 | 119,816 | 119,816 |
| 101.38 | 88.34 | 96.35 | 101.38 | |
| Investment yield, % | ||||
| Operating surplus (annualised) | 902 | 873 | 868 | 882 |
| Average value of properties | 23,481 | 20,841 | 21,527 | 22,784 |
| 3.8 | 4.2 | 4.0 | 3.9 |
2021
Interim Report January - September 19 October at 08:00
30 Platzer Q2 2021
2022 Year-end Report 2021 28 January at 08:00 Annual General Meeting 23 March Interim Report January—March 20 April at 08:00
For further information, please visit platzer.se or contact P-G Persson, CEO, on +46 (0)734 11 12 22 Fredrik Sjudin, CFO, on +46 (0)721 27 77 78
Platzer is one of the largest and leading commercial property companies in Gothenburg. We are proud to be participating in the creation, preservation and regeneration of the best locations in Gothenburg. Best in Gothenburg, best for Gothenburg. Quite simply the best Platzer in Gothenburg. We own and develop 70 properties with a total lettable area of 847,000 sq. m., worth SEK 24 billion.
We aim to make Gothenburg the best city in Europe to work in.
Platzer creates value through ownership and development of commercial property in Gothenburg.
• District development
By taking a leading position in selected areas of the market, we are taking responsibility for developing districts that are built for people, achieve sustainable development and are home to the best workplaces in Europe.
We create the best workplace in this industry by attracting, developing and retaining employees from different backgrounds and with different skills, who all work together to put our core values into practice.
• Finance
Platzer's financing strategy is based on the value of our properties and growth is primarily achieved without funding from shareholders, while the cost of financing is a competitive advantage over companies with comparable key ratios.
• Customers
We create long-term relationships with customers by taking the initiative and anticipating and meeting customers' needs at every stage of the customer journey.
We make it easy for customers to choose by offering clear and transparent packages.
We retain our customers through our professional approach to day-to-day activities.
Platzer creates value through letting and management, property projects and urban development, as well as acquisitions and disposals of properties. Platzer prioritises good relationships with tenants and offers a service that focuses on close relationships and commitment.
In autumn 2020, Platzer was named Listed Company of the Year by Kanton and Aktiespararna. The competition comprises companies domiciled in Sweden and with a primary listing on all Nasdaq Stockholm's markets: NGM Equity Stockholm, First North and First North Premier.
This was a unique victory, because in addition to being named the overall winner, Platzer also won in all subcategories: Best Annual Report, Best Interim Report and Best Investor Relations page.
Platzer wants to make a positive contribution to society by having a carbon footprint that is as small as possible. We take responsibility for Gothenburg by developing sustainable areas that put people first. Our approach is based on robust profitability and growth, and, not least, happy and satisfied employees.
To increase transparency around our climate impact and thus make it easier for investors to make sustainable decisions, our share has been awarded Nasdaq Green Equity Designation.
Our operations are based on long-term goals encompassing economic, environmental and social aspects. Together with the UN Sustainable Development Goals, or Global Goals, these form the backbone of our sustainability promise. We have chosen to prioritise the following goals:
Platzer Fastigheter Holding AB (publ) PO Box 211, SE-401 23 Gothenburg | Visiting address: Kämpegatan 7 +46 (0)31 631200 | [email protected] | platzer.se Registered office of Board of Directors: Gothenburg | Corporate ID Number: 556746-6437
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