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Wihlborgs Fastigheter
Quarterly Report • Apr 27, 2021
2995_10-q_2021-04-27_af00509d-2cb2-4a2e-9f2f-3bb061507d05.pdf
Quarterly Report
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January–March Wihlborgs' Interim report 2021
STABILITY AND DEVELOPMENT AS FOUNDATIONS
Rental income amounted to SEK 738 million (781)
Operating surplus amounted to SEK 509 million (555)
Income from property management amounted to SEK 416 million (460)
Result for the period amounted to SEK 478 million (344), corresponding to earnings per share of SEK 3.11 (2.24)
EPRA NAV increased by 2 percent to SEK 155.59 (152.44)
January–March 2021
| Group key figures, SEK m | 2021 | 2020 |
|---|---|---|
| Jan–Mar | Jan–Mar | |
| Rental income | 738 | 781 |
| Operating surplus | 509 | 555 |
| Income property management | 416 | 460 |
| Changes in value of properties | 74 | 59 |
| Changes in value of derivatives | 97 | -92 |
| Result for the period | 478 | 344 |
| Earnings per share, SEK | 3.11 | 2.24 |
| Surplus ratio, % | 69 | 71 |
| Equity/assets ratio, % | 41.5 | 38.3 |
| Occupancy rate, %* | 90 | 92 |
| EPRA NRV per share, SEK | 155.59 | 143.77 |
*) Excluding Projects & Land.
02
HETCH is a tech hub where start-ups, fast-growing technology companies and established companies can conduct research and development in shared premises. The company moved in to 2,000 m2 in Prisma (Ursula 1) in Helsingborg at the end of 2020 and the remaining 1,700 m2 will be occupied in January 2022.
Contents
| CEO's comments | 04 | ||
|---|---|---|---|
| Market comments | 05 | ||
| Income, expenses and profit | 06 | ||
| Assets | 08 | ||
| Liabilities and equity | 12 | ||
| Financial reports | 15 | ||
| Key figures & definitions | |||
Calendar
| Interim report Jan–Jun | 12 July 2021 |
|---|---|
| Interim report Jan–Sep | 22 October 2021 |
| Year-end report 2021 | 15 February 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.
Financial targets
- A return on equity that exceeds the riskfree interest rate by no less than six percentage points
- An equity/assets ratio of no less than 30 percent
- An interest coverage ratio of no less than 2.0
- The loan-to-value ratio is not to exceed 60 percent
See page 19 for outcome
Development of share price
Course development 2020-01-01 – 2021-03-31 010119–310321
This interim report is information of such a kind that Wihlborgs Fastigheter AB (publ) is legally required to disclose pursuant to the EU's Market Abuse Regulation and the Swedish Securities Market Act. The information was submitted for publication through the agency of the contact people below on 27 April 2021 at 07:30 CET.
CONTACTS
Ulrika Hallengren, CEO. Phone: +46 (0)40-690 57 95 E-mail: [email protected] Arvid Liepe, CFO. Phone: +46 (0)40-690 57 31 E-mail: [email protected]
03
Wihlborgs Fastigheter AB (publ) is a property company that focuses on commercial properties in the Öresund region. Its property portfolio is located in Malmö, Lund, Helsingborg and Copenhagen. In Malmö, Lund and Helsingborg Wihlborgs is the leading property company. The book value for the Company's properties totals SEK 46.7 billion. The annual rental value of the properties is SEK 3.3 billion. Wihlborgs shares are quoted on the Large Cap List of Nasdaq Stockholm.
CEO's comments
The first quarter of 2021 was also impacted by the pandemic on a global level. However, in pace with vaccination efforts and with the aid of government support packages, expectations for a return to a more normal life and higher economic activity are rising. I do not wish to detract from the difficulties that have impacted some sectors, but I must nevertheless say that I am impressed by how many companies and organisations have been able to quickly adapt to the prevailing circumstances. Operations are being driven forward successfully thanks to significant creativity and effort, which forms the foundation for the many positive dialogues we are having with our customers today. We have also noted the positive rent trend in our portfolio - new leases are at highter rates than those terminated.
Significance and experience of the workplace
It is also through close dialogue that we, together with our tenants, tackle the issue of the needs of tomorrow. In light of this, we have conducted a survey where we leveraged AI to analyse people's expressed perceptions of compared with their behaviour in the current working conditions. The survey shows that people are torn. On the one hand, there is the perception that working remotely is working well on the whole, but on the other hand a change of behaviour displays concern for physical and mental ill health, isolation and an increased need for work-related confirmation. It is still too early to draw any conclusions about how working patterns will ultimately change, but we are convinced that all employers will need to adapt their offerings to their employees in order to attract and retain the best expertise. The experience and design of the office will form key elements in this offering.
Sustained work with property management and strategic investments for the future
Even though the decision-making process can currently take longer than usual, we are conducting many constructive talks with existing and potential tenants. It is gratifying that we can once again report positive net lettings this quarter, amounting SEK 9 million. It is our sustained work with property management that gives rise to more transactions, which combine to deliver these results. At a time when restaurants are struggling with various restrictions, it feels positive that we have now signed agreements with four restaurants that will open in the newly renovated Helsingborg Central Station after the summer. Their faith in the future bodes well in these times.
Developing the content of the property portfolio requires continuous efforts. In December 2020, we divested some 20 properties in Malmö with the intent of improving the overalll structure and quality. At the same time, the divestments also mean that we will experience a drop in income for the current year. We also took the opportunity in 2020 to wind up some leases to be able to develop the properties in the future. This was the case for Vätet 1 and Raffinaderiet 3 in Lund as well as Sparven 15, Slagthuset 1 and Börshuset 1 in Malmö among others. In the short term, this will lead to increased vacancies but it also enables us to improve content and quality as well as raise rent levels. In the Medeon area of Malmö, we are beginning to see the results of the boost we started a couple of years ago. We have constructed a new building here but also invested in existing buildings, and we are now signing extended agreements at higher rental levels. The journey has only just begun.
" Developing the content of the property portfolio requires continuous efforts."
Rental income for the quarter amounted to SEK 738 million and the operating surplus to SEK 509 million. The net effect of property transactions was SEK -24 million on income and SEK -16 million on the operating surplus. In addition, negative currency effects arose of SEK 8 million and SEK 5 million respectively. Overall, the results are in line with our expectations, but of course, we are not entirely unaffected by the economic downturn. Vacancies have increased somewhat over the past quarters, and it will take yet some time before they are expected to decrease once again.
During the quarter, tenants have continued to move in to Prisma (Ursula 1) in Helsingborg. We are extremely proud of the final product and are looking forward to tenants successively moving in during the year. Among our larger projects, I would also like to name Kranen 2 in Malmö, that following extensive renovation of a total of 17,000 m² in the autumn, will welcome operations from Malmö University and Region Skåne.
Development moving forward
When the economy picks up, we will be ready. In the past few years, we have built up a strong balance sheet and healthy liquidity. On back of this, we are now underway with the new construction of the office building in Kvartetten in Hyllie, Malmö. We are creating 16,000 m² of modern, efficient and sustainable offices in an area with ideal transportation links. For Kvartetten, our greatest focus is on developing a sustainable workplace, and it seems the building will achieve the highest environmental rating with WELL and "NollCO2 " certifications.
We are also growing in Copenhagen, where we have purchased an additional office building in Ballerup comprising just over 10,000 m². We now have a property portfolio totalling 636,000 m² in our Danish operations. Looking to the future, planning is ongoing for the Nyhamnen area in Malmö and Västerbro in Lund, and work at Science Village in Lund is also beginning to yield tangible results.
Naturally, there is an element of uncertainty in the current forecasts regarding when and at what pace the economic recovery will take place. However, when this does take place, we will be able to benefit from our strong market position, our exciting project portfolio and our access to stable, long-term financing. Following the pandemic, we are convinced that the attractiveness and growth of the Öresund region will be even stronger than before.
Ulrika Hallengren, CEO
Market comments
The global economy has been significantly impacted by the pandemic, but the recovery is underway. Major support packages, increased vaccination and reduced infection over time will continue this recovery in 2021 and 2022.
The Nordic countries have recovered relatively quickly. Even if GDP still remains lower than prior to the crisis, the downturn is no longer as substantial. In the fourth quarter, GDP shrank 2.1 percent in Sweden and 2.6 percent in Denmark. In Sweden, investments in the fourth quarter were essentially in line with the year-earlier period, while investments in Denmark increased 3.1 percent. Sweden recorded strong exports in the fourth quarter and an increase of 1.2 percent. On the other hand, Denmark recorded a major reduction of 9.1 percent.
In Sweden, GDP fell 3.1 percent in 2020. Indicators point toward positive growth during the first quarter, and the recovery is continuing. GDP is expected to return to its pre-pandemic level by the third quarter of 2021. Growth is estimated to be 3.6 percent in 2021. The extensive support measures enabling the survival of many companies means that these companies are expected to grow relatively rapidly once restrictions ease. Exports provide a considerable boost and private consumption is expected to increase substantially toward the end of the second quarter. GDP in Denmark declined 3.3 percent in 2020 and growth of 3.1 percent is expected in 2021.
Forecasts believe a downside risk to be more likely than an upside risk according to the Swedish National Institute of Economic Research's March 2021 Swedish Economy report.
Economic Sentiment in the Swedish economy is somewhat stronger than normal, which is mainly demonstrated by the Economic Sentiment Indicator in which results rose from 103.8 in February to 105.3 in March. However, this is uniquely the result of strong signals from the manufacturing industry. In other sectors such as construction, retail, service and households, sentiment is weaker than normal.
The transaction year began surprisingly strong in Sweden. According to Cushman & Wakefield, transaction volumes are expected to rise to SEK 39.6 billion for the first quarter of 2021, almost in line with the level of the year-earlier period. Housing and industry/logistics accounted for about 60 percent of the volume. These are also segments that have maintained strength during the pandemic.
International investors have traditionally shown considerable interest in Swedish office properties. These investors are now more cautious due to rising uncertainty regarding the demand and need for offices as result of the pandemic. With greater local knowledge, domestic investors are somewhat more optimistic given that the rental market remains relatively stable.
Comparative figures for income statement items relate to values for the corresponding period 2020 and balance sheet items as of 31-12-2020.
Income, expenses and profits, January–March 2021
Rental income
Rental income amounted to SEK 738 million (781), corresponding to a decline of 6 percent. Service income accounted for SEK 69 million (82) of rental income. Acquisitions and sales of properties had a negative impact of SEK 24 million (positive: 13). Vacancies were SEK 20 million higher during the period compared with the year-earlier period. SEK 3 million (7) 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 4 million (0) on rental income. Currency effects amounted to SEK -8 million (4) 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 90 percent which is one percentage points lower compared with year-end.
Terms of Wihlborgs' contracts per 31 March 2021 SEK m
Cancellable rental value, SEK m
Net letting, quarterly
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
-100 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Net New leases
To enhance understanding of tomorrow's workplaces and work lives, Wihlborgs collaborated with Navet and Quilt AI to carry out the study "Kontorsmarknad i förändring" (A Changing Office Market). Data from articles, Google searches and posts on social media were then analysed using AI. This clearly showed that our need for solidarity and confirmation for the efficiency of our work is increasing, but there is also a desire for greater flexibility.
During the period new leases were signed to a value of SEK 56 million (61) on an annualized basis. Lease terminations totalled SEK 47 million (53). This represents a net letting of SEK 9 million (8).
Property expenses
Total property expenses amounted to SEK 229 million (226). Bad debt losses was SEK 1 million (1) 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.
Operating surplus
The operating surplus amounted to SEK 509 million (555) representing a surplus ratio of 69 percent (71). Of the change, SEK -16 million (7) was attributable to property acquisitions and divestments, in addition, currency effects have affected by SEK -5 million (3).
Central administration
The costs for central administration were SEK 21 million (20).
Financial income and expense
Net interest totalled SEK -72 million (-76), of which interest income accounted for SEK 4 million (3).
The interest expense for the period, incl. realized effects from interest rate derivatives, was SEK 76 million (79). Leasehold rent amounted to SEK 1 million (1). Interest expense relating to interest rate derivatives amounted to
SEK 16 million (9). At the end of the period, the average interest rate, including the cost of credit agreements, was 1.37 percent, compared with 1.38 percent at year-end.
Income from property management
Profit participation in joint ventures amounted to SEK 1 million (2). Income from property management amounted to SEK 416 million (460).
Pre-tax profit
The pre-tax profit, i.e. after value changes on properties and derivatives, was SEK 587 million (427). During the period, value changes on properties amounted to SEK 74 million (59). Value changes on derivatives amounted to SEK 97 million (-92) of which SEK 99 million (–90) are attributable to interest rate derivates and -2 million (-2) to other financial items.
Profit after taxes
The profit after taxes was SEK 478 million (344). Total tax amounted to SEK 109 million (83), of which current tax SEK 11 million (10) and deferred tax SEK 98 million (73).
Wihlborgs signed a new lease for 2,000 m2 in Hermes 10 in Helsingborg during the first quarter. The new tenant operates in the financial sector and takes occupancy in October. In the Hermes block, Campus Helsingborg is a strategically important tenant and the location next to Helsingborg Central Station makes the block attractive for commuters.
Assets
Property portfolio as of 31 March 2021
The summaries below are based on Wihlborgs' property portfolio as of 31 March 2021. Rental income relates to contracted rental income on an annual basis as of 1 April 2021.
The operating surplus is based on the properties' earning capacity on an annual basis based on rental income for April 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 31 March 2021 consisted of 295 properties (294) with a lettable area of 2,112,000 m2 (2,103,000). 7 of the properties (10) are leasehold rights.
The properties' carrying amount was SEK 46,687 million (46,072), which corresponds to the estimated market value. The total rental value was SEK 3,285 million (3,268) and the contracted rental income on annual basis SEK 2,962 million (2,946). The like-for-like increase in rental value was 0,4 percent while contracted rental income decreased by 1,9 percent compared to 12 months previously.
The economic occupancy rate for Office/Retail properties was 90 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 2,274 million (2,253) which with a carrying amount of SEK 44,964 million (44,169) corresponds to a yield of 5.1 percent (5.1). Broken down by property category, this is 4.8 percent (4.9) for Office/Retail and 6.6 percent (6.8) for Logistics/Production.
The selection of restaurants in Helsingborg is growing and becoming more varied. During the quarter, we have filled the restaurant level Kitchen Floor at Helsingborg Central Station with four new restaurant concepts that will open in September. Kitchen Floor will become a natural meeting place and a destination of its own.
Changes in values of properties
By year-end the valuation of all Wihlborgs' properties is carried out by external valuers. The valuation as of 31 March 2021 has been made internally and resulted in a value increase at SEK 74 million (59).
The yield requirements in the valuations have been largely unchanged. Property development projects had a certain positive impact on valuations during the quarter.
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 31 december 2020 the carrying amount for the properties is SEK 46,072 million (45,519).
| Changes in carrying amount of properties | ||||
|---|---|---|---|---|
| Changes | Group total, SEK m |
|||
| Carrying amount 1 January 2021 | 46,072 | |||
| Acquisitions | 165 | |||
| Investments | 208 | |||
| Properties sold | - | |||
| Change in value | 74 | |||
| Currency translations | 168 | |||
| Carrying amount 31 March 2021 | 46,687 |
Projects/Land 1% Copenhagen 21%
Hyresvärde per område
18% Lund
83% Ofce/Retail
25% Helsingborg
Malmö 36%
Logistics/Production
Hyresvärde per fastighetskategori
16%
Investments and current projects
Investments in the property portfolio totalled SEK 208 million (337).
Approved investments in ongoing projects amount to SEK 1,664 million, of which 460 million had been invested at the end of period.
Liquid assets
The Groups liquid assets totalled SEK 695 million (607) including unutilized overdraft facilities. At the end of the period unutilized credit facilities amounted to SEK 3,670 million (3,656).
Of the rent that fell due for payment (excluding granted deferrals) on the last day of March, 98 percent has been paid as of the date of publishing this report, which is above average over the last eight quarters.
| Investments in progress >SEK 50 million, 31 March 2021 | |||||||
|---|---|---|---|---|---|---|---|
| Property | Category of use |
Municipality | Completion date |
Lettable area, m2 |
Occupancy rate, % |
Estimated investment, SEK m |
Expended 31-03-2021, SEK m |
| Sunnanå 12:54 | Logistics/Production | Malmö | Q2 2021 | 3,600 | 100 | 96 | 85 |
| Kranen 2 a | Office/Retail | Malmö | Q4 2021 | 3,700 | 100 | 137 | 67 |
| Kranen 2 b | Office/Retail | Malmö | Q4 2021 | 4,400 | 100 | 100 | 22 |
| Raffinanderiet 3 | Office/Retail | Lund | Q2 2022 | 5,800 | 10 | 114 | 6 |
| Hindbygården 7 | Office/Retail | Malmö | Q3 2022 | 1,800 | 100 | 59 | 4 |
| Pulpeten 5 | Office/Retail | Malmö | Q2 2023 | 16,000 | 0 | 696 | 22 |
| Summa | 35,300 | 1,202 | 206 |
Analysis of lettable space per area and category of use
| Area | Office, | Retail, | Logistics/ | Education/ | Misc., | Total, | Share, |
|---|---|---|---|---|---|---|---|
| m2 | m2 | Production, m2 | Health care, m2 | m2 | m2 | % | |
| Malmö | 341,721 | 43,796 | 161,574 | 32,556 | 15,731 1 |
595,378 | 28 |
| Helsingborg | 218,266 | 58,484 | 286,935 | 40,112 | 13,046 2 |
616,843 | 29 |
| Lund | 199,717 | 14,656 | 35,736 | 4,429 | 9,224 3 |
263,762 | 13 |
| Köpenhamn | 444,822 | 7,075 | 92,552 | 11,519 | 80,340 4 |
636,308 | 30 |
| Total | 1,204,526 | 124,011 | 576,797 | 88,616 | 118,341 | 2,112,291 | 100 |
| Share, % | 57 | 6 | 27 | 4 | 6 |
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 | 50 | 444 | 16,911 | 1,030 | 2,320 | 92 | 948 | 719 | 76 | 753 | 4.5 |
| Logistics/Production | 29 | 134 | 1,668 | 130 | 975 | 97 | 127 | 99 | 78 | 106 | 6.4 |
| Projects & Land | 20 | 17 | 920 | 6 | 364 | - | 6 | 2 | - | 3 | - |
| Total Malmö | 99 | 595 | 19,499 | 1,167 | 1,960 | 93 | 1,081 | 820 | 76 | 862 | 4.4 |
| Helsingborg | |||||||||||
| Office/Retail | 36 | 258 | 7,215 | 509 | 1,970 | 88 | 448 | 338 | 75 | 353 | 4.9 |
| Logistics/Production | 58 | 359 | 3,188 | 320 | 893 | 89 | 285 | 204 | 72 | 220 | 6.9 |
| Projects & Land | 11 | - | 296 | - | - | - | - | -1 | - | - | - |
| Total Helsingborg | 105 | 617 | 10,699 | 829 | 1,344 | 88 | 733 | 541 | 74 | 574 | 5.4 |
| Lund | |||||||||||
| Office/Retail | 25 | 241 | 7,463 | 567 | 2,351 | 87 | 491 | 338 | 69 | 378 | 5.1 |
| Logistics/Production | 4 | 23 | 214 | 19 | 849 | 94 | 18 | 14 | 76 | 15 | 7.1 |
| Projects & Land | 4 | - | 235 | - | 6,767 | - | - | -2 | - | -1 | - |
| Total Lund | 33 | 264 | 7,912 | 586 | 2,222 | 87 | 509 | 350 | 69 | 392 | 5.0 |
| Copenhagen | |||||||||||
| Office/Retail | 47 | 562 | 7,613 | 636 | 1,131 | 92 | 586 | 388 | 66 | 407 | 5.3 |
| Logistics/Production | 9 | 61 | 692 | 56 | 922 | 95 | 53 | 40 | 76 | 41 | 6.0 |
| Projects & Land | 2 | 13 | 271 | 11 | 826 | - | - | - | - | - | - |
| Total Copenhagen | 58 | 636 | 8,576 | 703 | 1,104 | 91 | 639 | 428 | 67 | 448 | 5.2 |
| Total Wihlborgs | 295 | 2,112 | 46,687 | 3,285 | 1,555 | 90 | 2,962 | 2,139 | 72 | 2,276 | 4.9 |
| Total excluding projects and land |
258 | 2,081 | 44,964 | 3,267 | 1,570 | 90 | 2,956 | 2,139 | 72 | 2,274 | 5.1 |
Property transactions
During the quarter, Wihlborgs aquired the Industriparken 21 propery in Ballerup, Copenhagen, for a purchase price of DKK 120 million. The property comprises 13,900 m2 and the lettable area amounts to 10,200 m2 . The propery was aquired through a sale-and-leaseback transation whereby the owner of C. Reinhardt A/S sold the propery and signed a seven year lease for 5,800 m2 .
| Property transactions January–March 2021 | |||||||
|---|---|---|---|---|---|---|---|
| Quarter | Property | Municipality | Management area | Category | Area, m2 |
Price, SEK m |
Operating surplus 2021, SEK m1 |
| Acquisitions | |||||||
| 1 | Industriparken 21 | Ballerup | Copenhagen | Office/Retail | 10,200 | 165 | 0 |
| Total acquisitions 2021 | 10,200 | 165 | 0.0 | ||||
| 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.
During the first quarter, we further strengthened our presence in Denmark by acquiring the office and warehouse property Industriparken 21 in Ballerup. As part of the transaction, the seller C. Reinhardt A/S signed a seven-year lease for 5,800 m². Other tenants include Renault, Xerox, Maxi Zoo and Henkel.
Liabilities and equity
As of 31 March 2021 equity totalled SEK 19,887 million (19,396). The equity/assets ratio stood at 41.5 percent (41.3).
Interest-bearing liabilities
The group's interest-bearing liabilities as of 31 March amounted to SEK 22,613 million (22,208) with an average interest rate including costs for credit agreements of 1.37 percent (1.38).
With consideration to the company's net debt of SEK 22.6 billion, the loan-to-value ratio is 48.4 percent (48.2) as a percentage of property values.
The loans' average fixed interest period including effects of derivatives on 31 March 2021 amounted to 3.4 years (3.6). The average loan maturity, including commited credit facilities, amounted to 6.3 years (6.1).
| Structure of interest and loan maturities as of 31 March 2021 | |||||||
|---|---|---|---|---|---|---|---|
| Interest maturity | Loan maturity | ||||||
| Matures, year |
Loan amount, SEK m |
Av. interest rate, % |
Credit ag., SEK m |
Utilised, SEK m |
|||
| 2021 | 9,322 | 1.03 | 2,757 | 2,257 | |||
| 2022 | 1,850 | 1.21 | 4,173 | 3,673 | |||
| 2023 | 2,430 | 1.46 | 4,916 | 4,366 | |||
| 2024 | 1,788 | 1.48 | 6,550 | 4,430 | |||
| 2025 | 1,788 | 1.49 | 6 | 6 | |||
| >2025 | 5,435 | 1.67 | 7,881 | 7,881 | |||
| Totalt | 22,613 | 1.32 | 26,283 | 22,613 |
*) Excluding costs for credit agreements
Wihlborgs use interest rate derivatives in order to reduce the risk level in the loan portfolio. A summary of the terms is shown in the table below.
| Interest rate derivatives portfolio 31 March 2021 | ||||||
|---|---|---|---|---|---|---|
| Interest rate swaps | ||||||
| Maturity | Amount, SEK m | Interest, % | ||||
| 2021 | 2,130 | 0.05 | ||||
| 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 | 13,522 | 0.39 |
The deficit value in Wihlborgs' interest rate derivative portfolio amounted to SEK 84 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.
At the start of the year, it was decided that we will construct a new premises for Beckhoff Sweden in Fosie, Malmö. Occupancy of Hindbygården 7, with good transportation links and exciting architecture, will take place in summer 2022. The building has been certified to SGBC Gold.
Miscellaneous
Employees
At the end of the period, the number of FTEs at Wihlborgs was 237 (236), of which 105 (102) were in property service. Of the total number of FTEs, 74 (77) were in Malmö, 32 (32) in Helsingborg, 31 (31) in Lund and 100 (96) in Copenhagen. The average age of employees is 43 years and women make up 42 percent.
Parent company
The parent company owns no properties, but deals with questions relating to the stock market and joint Group functions for administration, management and borrowing. The parent company's turnover is mostly related to the billing of services to Group companies.
The parent company has invested SEK 0 million (11), 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.
Participations in other companies
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.
Largest shareholders
The largest shareholder in Wihlborgs is Erik Paulsson with family and company, with 10.5 percent of the shares outstanding.
Shares held by owners registered abroad account for 38 percent. The number of shareholders is approximately 28,000.
| Largest shareholders in Wihlborgs 31 March 2021 | |||||
|---|---|---|---|---|---|
| Number of | Proportion of | ||||
| shares, | equity and | ||||
| thousands | votes, % | ||||
| Erik Paulsson with family, | 16,188 | 10.5 | |||
| privately and via company | |||||
| SEB Investment Management | 11,018 | 7.2 | |||
| Länsförsäkringar funds | 6,178 | 4.0 | |||
| Swedbank Robur funds | 5,229 | 3.4 | |||
| Handelsbanken funds | 4,507 | 2.9 | |||
| Qviberg family | 3,160 | 2.1 | |||
| Bank of Norway | 3,139 | 2.0 | |||
| Life insurance company Skandia | 1,864 | 1.2 | |||
| AMF funds | 1,625 | 1.1 | |||
| Tibia Konsult AB | 1,523 | 1.0 | |||
| Other shareholders reg. in Sweden | 43,917 | 28.6 | |||
| Other shareholders reg. abroad | 55,365 | 36.0 | |||
| Total outstanding shares | 153,713 | 100.0 |
Now that it is not possible to meet and train together as usual using the community-building health initiative the Wihlborgs Classic, a digital campaign – Wihlborgs Go! – has been initiated instead. Everyone participates on their own terms, and they can share training pictures, spur each other on, like and leave comments. Our employees have left no less than 18,000 encouraging comments and likes to each other. A smart and appreciated solution that benefits health and the community.
Significant risks and uncertainty factors
Wihlborgs' future development and ability to reach its operational goals are influenced by numerous risks and uncertainties. By systematically reviewing, analysing and managing these risks and uncertainties, it is possible to limit them and concurrently create the prerequisites for continued growth.
The risks assessed as having a significant influence on the Group's earnings trend and cash flow are the variations in rental income, property costs and interest-rates. The properties are measured at fair value with changes in value in the income statement resulting in positive and negative impacts on earnings during the year. Property valuation also impacts Wihlborgs' financial position and key metrics. The extent of changes in value is partly determined by Wihlborgs' own capacity, through alteration and upgrading of properties, as well as by leases and client structures, to increase the properties' market value, and partly by external factors that affect supply and demand in the property markets where the company is active. Property valuation should take in to account an interval of uncertainty, which in a functioning market, typically consists of +/-5–10% to reflect the inherent uncertainty of assumptions and estimates.
In addition to the above, risks also include financing risks. Wihlborgs is dependent on external loans to meet its undertakings and complete transactions. Risks are managed using Wihlborgs' financial policy, which stipulates objectives, guidelines and risk limits for Wihlborgs' financial activities.
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.
Accounting policies
Wihlborgs follows the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB), as well as interpretations issued by the IFRS Interpretations Committee (IFRIC) as endorsed by the European Union. The Interim Report has been prepared in accordance with IAS 34 Interim Financial Reporting and the Swedish Annual Accounts Act. Information under IAS 34 p.16A is submitted in the notes and elsewhere in the interim report.
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.
Malmö 27 April 2021 Wihlborgs Fastigheter AB (publ)
Ulrika Hallengren, CEO
This interim report has not been reviewed by the company's auditors.
| Consolidated income statement summary | ||||
|---|---|---|---|---|
| SEK m | 2021 | 2020 | 2020/2021 | 2020 |
| Jan-Mar | Jan–Mar | Apr–Mar | Jan–Dec | |
| 3 month | 3 month | 12 month | 12 month | |
| Rental income | 738 | 781 | 3,031 | 3,074 |
| Operating costs | -127 | -124 | -432 | -429 |
| Repairs and maintenance | -22 | -22 | -97 | -97 |
| Property tax | -49 | -49 | -204 | -204 |
| Property administration | -31 | -31 | -122 | -122 |
| Total propery costs | -229 | -226 | -855 | -852 |
| Operating surplus | 509 | 555 | 2,176 | 2,222 |
| Central administration | -21 | -20 | -78 | -77 |
| Interest income | 4 | 3 | 15 | 14 |
| Interest expense | -76 | -79 | -324 | -327 |
| Leasehold rent | -1 | -1 | -5 | -5 |
| Share in results of joint ventures | 1 | 2 | 2 | 3 |
| Income from property management | 416 | 460 | 1,786 | 1,830 |
| Change in value of properties | 74 | 59 | 841 | 826 |
| Change in value of derivatives | 97 | -92 | 116 | -73 |
| Pre-tax profit | 587 | 427 | 2,743 | 2,583 |
| Current tax | -11 | -10 | -47 | -46 |
| Deferred tax | -98 | -73 | -340 | -315 |
| Profit for the period1 | 478 | 344 | 2,356 | 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 | 68 | 199 | -252 | -121 |
| Hedging of currency risk in foreign operations | -67 | -174 | 229 | 122 |
| Tax attributable to items that will be reclassified to profit or | ||||
| loss for the year | 12 | 29 | -39 | -22 |
| Other comprehensive income for the period | 13 | 54 | -62 | -21 |
| Total comprehensive income for the period1 | 491 | 398 | 2,294 | 2,201 |
| Earnings per share2 | 3.11 | 2.24 | 15.33 | 14.46 |
| No. of shares at end of the period, thousands | 153,713 | 153,713 | 153,713 | 153,713 |
| Average no. of shares, thousands | 153,713 | 153,713 | 153,713 | 153,713 |
1) The entire profit/income is attributable to the parent company's shareholders.
2) Key ratios per share have been calculated based on a weighted average number of shares during the period. There are no outstanding subscription options, convertibles or other potential ordinary shares and accordingly, no dilution effects to take into consideration.
| Consolidated balance sheet summary | |||||||
|---|---|---|---|---|---|---|---|
| SEK m | 31-03-2021 | 31-03-2020 | 31-12-2020 | ||||
| ASSETS | |||||||
| Investment properties | 46,687 | 46,559 | 46,072 | ||||
| Right-of-use assets | 148 | 170 | 149 | ||||
| Other fixed assets | 389 | 383 | 385 | ||||
| Derivatives | 65 | - | - | ||||
| Current receivables | 293 | 292 | 150 | ||||
| Liquid assets | 382 | 391 | 205 | ||||
| Total assets | 47,964 | 47,795 | 46,961 | ||||
| EQUITY AND LIABILITIES | |||||||
| Equity | 19,887 | 18,285 | 19,396 | ||||
| Deferred tax liability | 3,946 | 3,644 | 3,853 | ||||
| Borrowings | 22,613 | 24,264 | 22,208 | ||||
| Lease liability | 146 | 168 | 147 | ||||
| Derivatives | 149 | 171 | 183 | ||||
| Other long-term liabilities | 57 | 69 | 64 | ||||
| Current liabilities | 1,166 | 1,194 | 1,110 | ||||
| Total equity & liabilities | 47,964 | 47,795 | 46,961 |
| Consolidated statement of changes in equity | |||||||
|---|---|---|---|---|---|---|---|
| SEK m | Jan-Mar 2021 | Jan-Mar 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 | - | - | -692 | ||||
| Profit for the period | 478 | 344 | 2,222 | ||||
| Other comprehensive income | 13 | 54 | -21 | ||||
| Closing amount | 19,887 | 18,285 | 19,396 | ||||
| Equity attributable to minority shares with non-controlling interests | - | - | - | ||||
| Total equity at end of period | 19,887 | 18,285 | 19,396 |
| Consolidated cash flow statement summary | |||
|---|---|---|---|
| SEK m | Jan–Mar 2021 | Jan-Mar 2020 | Jan-Dec 2020 |
| Operating activities | |||
| Operating surplus | 509 | 555 | 2 222 |
| Central administration | -21 | -20 | -77 |
| Non-cash items | 0 | 6 | 18 |
| Interest received | 1 | 0 | 4 |
| Interest paid | -80 | -84 | -338 |
| Income tax paid | -8 | -2 | -66 |
| Change in other working capital | -88 | -47 | 68 |
| Cashflow from operating activities | 313 | 408 | 1,831 |
| Investment activities | |||
| Acquisitions of properties | -165 | -140 | -327 |
| Investments in existing properties | -208 | -337 | -1,231 |
| Sales of properties | - | - | 1,486 |
| Change in other non-current assets | -1 | 0 | -14 |
| Cash flow from investment activities | -374 | -477 | -86 |
| Financing activities | |||
| Dividend paid | - | - | -692 |
| Change in borrowing | 1,580 | 1,326 | 10,520 |
| Loan repayments | -1,334 | -1,143 | -11,640 |
| Change in other long-term liabilities | -8 | -3 | -8 |
| Cash flow from financing activities | 238 | 180 | -1,820 |
| Cash flow for the period | 177 | 111 | -75 |
| Opening cash flow | 205 | 280 | 280 |
| Closing cash flow | 382 | 391 | 205 |
| Historical summary of last eight quarters | ||||||||
|---|---|---|---|---|---|---|---|---|
| SEK m | Q1 2021 | Q4 2020 | Q3 2020 | Q2 2020 | Q1 2020 | Q4 2019 | Q3 2019 | Q2 2019 |
| Rental income | 738 | 751 | 775 | 767 | 781 | 765 | 743 | 757 |
| Operating costs | -127 | -121 | -88 | -96 | -124 | -120 | -87 | -96 |
| Repairs and maintenance | -22 | -30 | -24 | -21 | -22 | -35 | -19 | -19 |
| Property tax | -49 | -49 | -54 | -52 | -49 | -51 | -54 | -50 |
| Property administration | -31 | -28 | -35 | -28 | -31 | -34 | -31 | -29 |
| Operating surplus | 509 | 523 | 574 | 570 | 555 | 525 | 552 | 563 |
| Income from property management | 416 | 419 | 477 | 474 | 460 | 456 | 446 | 467 |
| Profit for the period | 478 | 694 | 820 | 364 | 344 | 1,546 | 450 | 616 |
| Surplus ratio, % | 69.0 | 69.6 | 74.1 | 74.3 | 71.1 | 68.6 | 74.3 | 74.4 |
| Investment yield, % | 4.4 | 4.5 | 4.9 | 4.9 | 4.8 | 4.6 | 4.9 | 5.1 |
| Equity/assets ratio, % | 41.5 | 41.3 | 38.4 | 37.6 | 38.3 | 38.4 | 35.3 | 35.1 |
| Return on equity, % | 9.7 | 14.6 | 17.9 | 8.0 | 7.6 | 36.1 | 11.2 | 15.5 |
| Earnings per share, SEK | 3.11 | 4.51 | 5.33 | 2.37 | 2.24 | 10.06 | 2.93 | 4.01 |
| Income property management per share, SEK | 2.71 | 2.73 | 3.10 | 3.08 | 2.99 | 2.97 | 2.90 | 3.04 |
| Cash flow fr operating activities per share, SEK | 2.04 | 3.11 | 3.08 | 3.11 | 2.65 | 3.19 | 3.16 | 2.97 |
| EPRA NRV per share, SEK | 155.59 | 152.44 | 147.63 | 142.19 | 143.77 | 140.20 | 130.23 | 126.29 |
| Share price as % of EPRA NRV | 106,49 | 121.62 | 120.23 | 107.25 | 96.2 | 123.0 | 122.9 | 106.6 |
| Carrying amount of properties | 46,687 | 4,072 | 47,041 | 46,392 | 46,559 | 45,519 | 45,306 | 44,455 |
| Equity | 19,887 | 19,396 | 18,729 | 17,907 | 18,285 | 17,887 | 16,362 | 15,905 |
| Total assets | 47,964 | 46,961 | 48,762 | 47,616 | 47,795 | 46,558 | 46,318 | 45,330 |
Definitions of key ratios are available on page 23.
| Consolidated segment reporting January–March | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Property management | Malmö | Helsingborg | Lund | Copenhagen | Total | |||||
| SEK m | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 |
| Rental income | 268 | 304 | 182 | 182 | 132 | 135 | 156 | 160 | 738 | 781 |
| Property costs | -75 | -77 | -59 | -49 | -43 | -43 | -52 | -57 | -229 | -226 |
| Operating surplus | 194 | 227 | 124 | 133 | 89 | 92 | 104 | 103 | 509 | 555 |
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 509 million (555) and the pre-tax profit of SEK 587 million (427) consists of central administration SEK -21 million (-20), financial net SEK -73 million (-77), share in results SEK 1 million (2) and changes in value of properties and derivatives SEK 171 million (-33).
| Parent company's income statement summary | ||||||
|---|---|---|---|---|---|---|
| SEK m | Jan–Mar 2021 | Jan–Mar 2020 | Jan-Dec 2020 | |||
| Income | 56 | 51 | 215 | |||
| Expenses | -53 | -49 | -203 | |||
| Operating profits | 3 | 2 | 12 | |||
| Financial income | 78 | 97 | 1,191 | |||
| Financial expenses | -31 | -313 | -300 | |||
| Pre-tax profit | 50 | -214 | 903 | |||
| Appropriations | - | - | 550 | |||
| Tax | -48 | 41 | -126 | |||
| Profit for the period | 2 | -173 | 1,327 |
| Parent company's balance sheet summary | ||||||
|---|---|---|---|---|---|---|
| SEK m | 31-03-2021 | 31-03-2020 | 31-12-2020 | |||
| Participations in Group companies | 9,506 | 9,596 | 9,506 | |||
| Receivables fr Group companies | 14,184 | 13,425 | 14,231 | |||
| Derivatives | 65 | - | - | |||
| Other assets | 329 | 554 | 399 | |||
| Cash and bank balances | 232 | 233 | 54 | |||
| Total assets | 24,316 | 23,808 | 24,190 | |||
| Equity | 6,578 | 5,768 | 6,576 | |||
| Liabilities to credit institutions | 14,810 | 15,894 | 14,683 | |||
| Derivatives | 149 | 171 | 183 | |||
| Liabilities to Group companies | 2,683 | 1,864 | 2,634 | |||
| Other liabilities | 96 | 111 | 114 | |||
| Total equity and liabilities | 24,316 | 23,808 | 24,190 |
| Key figures for the group | ||||
|---|---|---|---|---|
| SEK m | Jan-Mar | Jan-Mar | Apr-Mar | Jan-Dec |
| 2021 | 2020 | 2020/2021 | 2020 | |
| Financial | ||||
| Return on equity, % | 9.7 | 7.6 | 12.3 | 11.9 |
| Return on total capital, % | 5.4 | 5.7 | 6.9 | 7.1 |
| Equity/assets ratio, % | 41.5 | 38.3 | 41.5 | 41.3 |
| Interest coverage ratio, multiple | 6.4 | 6.8 | 6.4 | 6.5 |
| Leverage properties, % | 48.4 | 52.1 | 48.4 | 48.2 |
| Debt/equity ratio, multiple | 1.1 | 1.3 | 1.1 | 1.2 |
| Share-related | ||||
| Earnings per share, SEK | 3.11 | 2.24 | 15.33 | 14.46 |
| Earnings per share before tax, SEK | 3.82 | 2.78 | 17.84 | 16.80 |
| EPRA EPS, SEK | 2.43 | 2.73 | 10.35 | 10.65 |
| Cashflow from operations per share, SEK | 2.04 | 2.65 | 11.29 | 11.91 |
| EPRA NDV (net disposal value) per share, SEK | 129.38 | 118.96 | 129.38 | 126.18 |
| EPRA NRV (net reinstatement value) per share, SEK | 155.59 | 143.77 | 155.59 | 152.44 |
| Market value per share, SEK | 165.70 | 138.30 | 165.70 | 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 | 13.3 | 15.4 | 10.8 | 12.8 |
| P/E-ratio II, multiple | 17.0 | 12.7 | 16.0 | 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 | 295 | 314 | 295 | 294 |
| Carrying amount of properties, SEK m | 46,687 | 46,559 | 46,687 | 46,072 |
| Estimated investment yield, % – all properties | 4.6 | 4.9 | 4.6 | 4.6 |
| Estimated direct return, % – excl project properties | 4.8 | 5.0 | 4.8 | 4.8 |
| Lettable area, m2 | 2,112,,291 | 2,201,360 | 2,112,291 | 2,102,707 |
| Rental income, SEK per m2 | 1,555 | 1,537 | 1,555 | 1,554 |
| Operating surplus, SEK per m2 | 1,012 | 1,028 | 1,012 | 1,011 |
| Financial occupancy rate, % – all properties | 90 | 92 | 90 | 90 |
| Financial occupancy rate, % – excl project properties | 90 | 92 | 90 | 91 |
| Estimated surplus ratio, % | 72 | 72 | 72 | 72 |
| Employees | ||||
| Number of employees at period end | 237 | 229 | 237 | 236 |
1 The figure for 2021 relates to proposed dividend
Key figures & definitions
Basis for key ratios
The basis for key financial ratios that Wihlborgs present in the Interim report January–March 2021, page 19, are shown below. The following financial targets have been established by the Board:
- A return on equity that exceeds the risk-free interest rate* by not less than six percentage points, which for the beginning of 2021 corresponds to 5.78 percent
- The loan-to-value ratio is not to exceed 60 percent.
- An equity/assets ratio of no less than 30 percent.
- An interest coverage ratio of no less than 2.0.
*) Risk-free interest rate is defined as the rate on a 5-year Swedish government bond.
Unless otherwise stated, amounts are in SEK million.
| 31-03-2021 | 31-03-2020 | 31-12-2020 | |
|---|---|---|---|
| Return on equity | |||
| Profit for the period | 478 | 344 | 2,222 |
| Annualized | 1,912 | 1,376 | 2,222 |
| Equity, opening balance | 19,396 | 17,887 | 17,887 |
| Equity, closing balance | 19,887 | 18,285 | 19,396 |
| Average equity | 19,642 | 18,086 | 18,642 |
| Return on equity, % | 9.7 | 7.6 | 11.9 |
| Return on capital employed | |||
| Profit before tax | 587 | 427 | 2,583 |
| Interest expense (incl value changes interest derivatives) | -21 | 171 | 400 |
| Total | 566 | 598 | 2,983 |
| Annualized | 2,264 | 2,392 | 2,983 |
| Total assets, opening balance | 46,961 | 46,558 | 46,558 |
| Total assets, closing balance | 47,964 | 47,795 | 46,961 |
| Non-interest bearing debt, opening balance | -5,198 | -4,856 | -4,856 |
| Non-interest bearing debt, closing balance | -5,302 | -5,064 | -5,198 |
| Average capital employed | 42,212 | 42,217 | 41,733 |
| Return on capital employed, % | 5.4 | 5.7 | 7.1 |
| Equity/assets ratio | |||
| Equity | 19,887 | 18,285 | 19,396 |
| Total assets | 47,964 | 47,795 | 46,961 |
| Equity/assets ratio, % | 41.5 | 38.3 | 41.3 |
| Interest coverage ratio | |||
| Income from property management | 416 | 460 | 1,830 |
| Interest expense | 77 | 80 | 332 |
| Total | 493 | 540 | 2,162 |
| Interest expense | 77 | 80 | 332 |
| Interest coverage ratio, multiple | 6.4 | 6.8 | 6.5 |
| Leverage properties | |||
| Borrowings | 22,613 | 24,264 | 22,208 |
| Net value investement properties | 46,687 | 46,559 | 46,072 |
| Leverage properties, % | 48.4 | 52.1 | 48.2 |
| Debt/equity ratio | |||
| Interest-bearing liabilities | 22,772 | 24,446 | 22,368 |
| Equity | 19,889 | 18,285 | 19,396 |
| Debt/equity ratio, multiple | 1.1 | 1.3 | 1.2 |
| 31-03-2021 | 31-03-2020 | 31-13-2020 | |
|---|---|---|---|
| Earnings per share | |||
| Profit for the period | 478 | 344 | 2,222 |
| Average number of shares, thousands | 153,713 | 153,713 | 153,713 |
| Earnings per share, SEK | 3.11 | 2.24 | 14.46 |
| Earnings per share before tax | |||
| Profit before tax | 587 | 427 | 2,583 |
| Average number of shares, thousands | 153,713 | 153,713 | 153,713 |
| Earnings per share before tax, SEK | 3.82 | 2.78 | 16.80 |
| EPRA EPS | |||
| Income from property management | 416 | 460 | 1,830 |
| Tax depreciation, direct tax deductions etc | -210 | -272 | -929 |
| Taxable income from property management | 206 | 188 | 901 |
| Current tax on the above | -42 | -40 | -193 |
| Income from property management after deduction of current tax | 374 | 420 | 1,637 |
| Average number of shares, thousands | 153,713 | 153,713 | 153,713 |
| EPRA EPS, SEK | 2.43 | 2.73 | 10.65 |
| Operating cash flow per share | |||
| Operating cash flow | 313 | 408 | 1,831 |
| Average number of shares, thousands | 153 713 | 153,713 | 153,713 |
| Operating cash flow per share, SEK | 2.04 | 2.65 | 11.91 |
| EPRA NDV per share | |||
| Equity | 19,887 | 18,285 | 19,396 |
| Number of shares at year end, thousands | 153,713 | 153,713 | 153,713 |
| EPRA NDV per share, SEK | 129.38 | 118.96 | 126.18 |
| EPRA NRV per share | |||
| Equity | 19,887 | 18,285 | 19,396 |
| Deferred tax liability | 3,946 | 3,644 | 3,853 |
| Derivatives | 84 | 171 | 183 |
| Total | 23,917 | 22,100 | 23,432 |
| Average number of shares, thousands | 153,713 | 153,713 | 153,713 |
| EPRA NRV per share, SEK | 155.59 | 143.77 | 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 | 165,70 | 138.30 | 185.40 |
| Earnings per share | 3.11 | 2.24 | 14.46 |
| Annualized per share | 12.44 | 8.96 | 14.46 |
| P/E ratio I, multiple | 13.3 | 15.4 | 12.8 |
| P/E ratio II | |||
| Market price at year end | 165,70 | 138.30 | 185.40 |
| EPRA EPS | 2.43 | 2.73 | 10.65 |
| Annualized per share | 9.72 | 10.92 | 10.65 |
| P/E ratio II, multiple | 17.0 | 12.7 | 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.
Definitions
Key financial ratios
The key ratios are based on the statements of income, financial position, changes in equity and cash flow. Some of the historic data is compiled from the historical summary on page 17 In Wihlborgs' Interim Report.
Return on equity
Profit for the period as a percentage of average equity, excluding non-controlling interests. Average equity refers to the average of the opening and closing values for the respective period. In interim reports, the return is converted to its annualised value without taking account of seasonal variations. The ratio comprises a measure of the profitability in relation to shareholders' equity.
Return on capital employed (ROCE)
Earnings before interest expense, derivatives and taxes (EBIT) as a percentage of average capital employed. Capital employed is defined as total assets less non-interest-bearing liabilities and provisions. Average capital employed refers to the average of the opening and closing balances for each period. In interim reports, the return is converted to its annualised value without taking account of seasonal variations. The metric shows the return on the capital provided by shareholders and lenders without regard to interest.
Equity/assets ratio
Equity as a percentage of total assets at the end of the period. The ratio provides a measure of the financial strength of the company.
Interest coverage ratio
Income from property management, plus interest expense, divided by interest expense. The ratio measures the degree to which earnings can decline without jeopardising interest payments or, alternatively, how much interest expense can increase before income from property management becomes negative.
Loan-to-value ratio, properties
Borrowings as a percentage of the properties' carrying amounts. The ratio shows the degree of borrowing on the property portfolio.
Debt/equity ratio
Interest-bearing liabilities include borrowings, lease liabilities and any other interest-bearing liabilities.The ratio illustrates the relationship between borrowings and equity and, thereby, the gearing and financial strength.
Surplus ratio
The operating surplus, shown as a percentage of rental income. The ratio illustrates the proportion of rental income that remains after deducting property management costs.
Investment yield
The operating surplus shown as a percentage of the properties' average carrying amount. The average carrying amount refers to the average of the opening and closing values for the respective period. In interim reports, the yield is converted to its annualised value without taking account of seasonal variations. The ratio illustrates the yield on the property portfolio without taking account of its financing costs.
Share-related key ratios
Earnings per share for the period Earnings for the period divided by the average number of shares outstanding. Definition according to IFRS.
Earnings per share before tax
Earnings per share before tax divided by the average number of shares outstanding.
EPRA EPS
Income from property management less the estimated tax payable on taxable income from property management divided by the average
number of shares outstanding. Taxable income from property management is defined as income from property management less fiscal depreciation/amortisation and direct deductions. The effect of loss carryforwards is not taken into consideration.
Cash flows from operating activities per share Cash flows from operating activities divided by the average number of shares outstanding.
EPRA NDV - Net disposal value, per share The closing balances for equity divided by the number of shares at the end of the period.
EPRA NRV - Net reinstatement value, per share
The closing balances for equity following the reversal of interest-rate derivatives and deferred tax according to the balance sheet, divided by the number of shares at the end of the period.
Dividend yield per share
Proposed dividend as a percentage of the year-end share price.
Total yield per share
Share price performance plus actual dividend relative to the share price at the start of the year.
P/E ratio I, multiple
Market price per share divided by earnings per share. In interim reports, the ratio is converted to its annualised value without taking account of seasonal variations.
P/E ratio II, multiple
Market price per share divided by EPRA RPS per share. In interim reports, the ratio is converted to its annualised value without taking account of seasonal variations.
Average fixed interest period
Time remaining until the interest on all interest bearing debts in average has been adjusted.
Average loan maturity
Time remaining until an average of all interest bearing debts has been refinanced.
Property-related key figures*
These key figures are based on the property table on page 10. The table shows the estimated rental value, rental income and property expenses on an annualised basis with an unchanged property portfolio, rental income and lettings portfolio compared with the end of the last quarter.
Rental value
Rental income plus estimated market-level rents for unlet space.
Estimated investment yield
Operating surplus as a percentage of the carrying amount for the properties at the end of the period.
Rental income per m2
Rental income on an annualised basis divided by lettable area.
Operating surplus per m2 Operating surplus divided by lettable area.
Economic occupancy rate Rental income as a percentage of rental value.
Estimated surplus ratio
Operating surplus as a percentage of rental income.
Room for more
The Öresund region continues to win people over and at Wihlborgs, we demonstrate daily how genuine commitment and engagement creates scope for more possibilities. For our tenants. In cities and neighbourhoods. And for all of our fantastic region. Welcome, and discover more with us.
Malmö – Headquarters
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Wihlborgs Fastigheter AB Box 97, SE-201 20 Malmö Visitors: Stora Varvsgatan 11A Tel: +46 40 690 57 00
Helsingborg
Wihlborgs Fastigheter AB Terminalgatan 1 SE-252 78 Helsingborg Tel: +46 42 490 46 00
Lund
Wihlborgs Fastigheter AB Ideon Science Park Scheelevägen 17 SE-223 70 Lund Tel: +46 46 590 62 00
Danmark
Wihlborgs A/S Mileparken 22A DK-2740 Skovlunde, Denmark Tel: +45 396 161 57