Quarterly Report • May 8, 2020
Quarterly Report
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Comparisons stated in parenthesis refer to the corresponding period of the previous year.
| 2020 Jan-March |
2019 Jan-March |
2019 Jan-Dec |
2018 Jan-Dec |
2017 Jan-Dec |
2016 Jan-Dec |
2015 Jan-Dec |
2014 Jan-Dec |
2013 Jan-Dec |
|
|---|---|---|---|---|---|---|---|---|---|
| Rental income, SEKm | 2,023 | 1,797 | 7,609 | 6,714 | 5,915 | 5,373 | 2,711 | 2,525 | 1,884 |
| Profit from property management, SEKm1) | 965 | 901 | 4,023 | 3,304 | 2,804 | 2,265 | 1,780 | 1,275 | 854 |
| Changes in value of investment properties, SEKm | 260 | 708 | 9,577 | 8,007 | 5,336 | 4,932 | 3,388 | 3,050 | 854 |
| Changes in value of derivatives, SEKm | –172 | –99 | –180 | –34 | 144 | –114 | 227 | –624 | 433 |
| Profit after tax, SEKm 1) | 1,063 | 1,188 | 8,958 | 9,308 | 7,118 | 5,474 | 4,916 | 3,128 | 1,738 |
| Investment properties, SEKm | 148,553 | 121,366 | 141,392 116,542 | 98,360 | 86,177 | 68,456 | 37,382 | 27,532 | |
| Development properties, SEKm | 2,667 | 1,861 | 2,344 | 1,598 | – | – | – | – | – |
| Data per share | |||||||||
| Average number of shares, thousands | 180,000 | 180,000 | 180,000 180,000 180,000 173,598 162,753 161,786 159,537 | ||||||
| Profit after tax, SEK | 5.91 | 6.60 | 49.77 | 51.71 | 38.71 | 30.38 | 28.98 | 18.10 | 10.11 |
| Profit from property management, SEK | 5.36 | 5.01 | 22.35 | 18.35 | 14.74 | 11.89 | 9.71 | 6.64 | 4.57 |
| Outstanding number of shares, thousands | 180,000 | 180,000 | 180,000 180,000 180,000 180,000 172,397 162,397 159,537 | ||||||
| Shareholders' equity, SEK | 277.45 | 229.44 | 272.28 | 223.03 | 173.86 | 139.23 | 103.24 | 70.10 | 52.14 |
| Long-term net asset value (NAV), SEK | 348.35 | 286.41 | 341.70 | 277.60 | 218.10 | 180.09 | 134.35 | 86.33 | 60.50 |
| Share price on the closing date, SEK | 357.00 | 298.00 | 433.20 | 252.00 | 219.40 | 184.10 | 208.70 | 110.25 | 66.00 |
1) Attributable to parent company shareholders.
In a short period of time, our reality has changed so much. The outbreak of the corona pandemic has had an extremely severe impact on society and on global stock markets and nobody knows yet what the outcome will be.
The pandemic is currently impacting all business activity, but different sectors are affected to a varying degree. During the first quarter, Balder's profit from property management increased by 7 %. Income during the first quarter has already been adjusted for the variable rents that we normally receive from hotels, but that will most likely not materialise during 2020. Current earnings capacity has also been adjusted in an equivalent manner.
We are following developments very closely and are in continual contact with both our tenants and financiers. Despite the difficult times, we are trying to find new opportunities and we have also received a number of business proposals that we would not otherwise have received in a different situation.
We are trying as far as possible and in different ways to support those of our tenants that are experiencing most difficulties. To date, we have given deferrals on rent payments equivalent to SEK 135 million, where the majority relates to the fact that we have changed from quarterly to monthly payment and we have also granted rebates of almost SEK 10m.
Collector have still not seen any direct consequences with regard to how their operations will be affected, but as a precautionary measure, they have made an extra credit reserve for future effects.
The future, as stated earlier, is extremely uncertain. We are trying to prepare ourselves for different scenarios – that we will see a trend reversal and a positive development in the near future, that the negative effects will persist for a longer period or that we will end up somewhere in between. It is still my opinion that Balder has a strong basis to proceed from and good opportunities over time to continue creating value. A positive signal in any case is that 99 % of the rents that were due on 1 April have been received.
Another very positive factor I want to highlight in these uncertain times is the fantastic team spirit we have internally at Balder. During the recent period, all colleagues have stepped up and made a whole series of extraordinary efforts, many times over and above their own job descriptions. I want to take this opportunity to thank all of our excellent employees that help out when needed in order to support both our tenants and one another.
Erik Selin Chief Executive Officer
Like all companies, Balder is affected by the ongoing pandemic and the company has taken a number of measures to handle the current situation. The future development is uncertain and it is important that the operations are flexible and prepared for any new challenges that arise.
The day-to-day operations have been adapted to the prevailing circumstances and the employees are contributing in many different ways and are performing many other duties than normal. Employees with the means to do so have also been given the opportunity to work from home. The company follows the advice and guidelines issued by the Public Health Agency of Sweden and the government. The Management team is holding daily meetings and the employees are receiving continual information about the situation.
Approximately 60 % of the property portfolio consists of residential properties. Of the total property portfolio, approximately 8 % consists of hotels, a sector which is experiencing difficulties.
Balder has a continual dialogue with the tenants and aims to the greatest extent possible, to support those with liquidity problems as a consequence of the pandemic. A number of inquiries have been received regarding rent reductions in the commercial properties and these cases are handled to arrive at the best possible solution and support the tenants. In several cases, agreements have been reached on a changeover to monthly payments and deferrals of rent payments.
The severe impact on society and global stock markets caused by the pandemic has so far in the Balder Group had a limited effect on our financing. In these times, it is extremely important to have good liquidity and that the company's financing requirements are secured. Balder has liabilities that mature during 2020 of SEK 8,300m. During April, SEK 6,000m of these liabilities were secured through agreements and raising of new loans. The remaining SEK 2,000m consists of bonds in the Swedish market that mature during November and December. These bonds will be refinanced later in the year. Balder also has available liquidity and credit commitments of SEK 12,700m, which can be used if the need should arise. Apart from this, Balder also has credit facilities that secure the company's constructions in progress.
Balder also carries out a number of activities in order to support our tenants in different ways and society as a whole. In several localities, the company provides premises with places for study for young people attending upper secondary school. In some of these places, the company also offers lunch to the young people.
At Östra Hospital in Gothenburg, where many of the Västra Götaland region's Covid-19 patients are being treated, Balder is making 90 parking spaces available, where healthcare staff can park free of charge. Balder is also participating in an initiative during May where several large companies will take turns in paying for the lunch of 200 healthcare workers.
In order to support commercial tenants, Balder has also gathered together offers from these tenants and is helping to market their businesses. The residential tenants have received information about where they can turn to for help, or to get involved themselves to help.
Balder is continuing the development of the property portfolio through new production and projects under construction are advancing according to plan. Regarding the projects where construction has not yet started, projecting is continuing as before, but Balder has chosen to postpone construction start until the right conditions are considered to exist.
Balder presents its earning capacity on a twelve-month basis in the table below. It is important to note that the current earning capacity should not be placed on a par with a forecast for the coming 12 months. For instance, the earning capacity contains no estimate of rental, vacancy, currency or interest rate changes.
Balder's income statement is also impacted by the development in the value of the real estate portfolio as well as future property acquisitions and/or property divestments. Additional items affecting the operating result are changes in value of derivatives. None of the above has been considered in the current earning capacity.
The earning capacity is based on the real estate portfolio's contracted rental income, estimated property costs during a normal year as well as administrative costs. The costs of the interest-bearing liabilities are based on the group's average interest rate level including the effect of derivative instruments. The tax is calculated using the effective tax rate during each period.
| SEKm | 2020 31 March |
2019 31 Dec |
2019 30 Sep |
2019 30 June |
2019 31 March |
2018 31 Dec |
2018 30 Sep |
2018 30 June |
2018 31 March |
2017 31 Dec |
2017 30 Sep |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Rental income | 8,100 | 8,000 | 7,830 | 7,435 | 7,175 | 7,000 | 6,800 | 6,665 | 6,430 | 6,240 | 5,920 |
| Property costs | –2,090 | –2,080 | –2,060 | –1,940 | –1,875 | –1,885 | –1,845 | –1,815 | –1,760 | –1,720 | –1,655 |
| Net operating income | 6,010 | 5,920 | 5,770 | 5,495 | 5,300 | 5,115 | 4,955 | 4,850 | 4,670 | 4,520 | 4,265 |
| Management and | |||||||||||
| administrative costs | –680 | –670 | –640 | –640 | –620 | –595 | –590 | –590 | –565 | –550 | –510 |
| Profit from property | |||||||||||
| management from | |||||||||||
| associated companies | 760 | 785 | 775 | 750 | 775 | 735 | 660 | 650 | 650 | 640 | 600 |
| Operating profit | 6,090 | 6,035 | 5,905 | 5,605 | 5,455 | 5,255 | 5,025 | 4,910 | 4,755 | 4,610 | 4,355 |
| Net financial items, including | |||||||||||
| ground rent | –1,420 | –1,330 | –1,330 | –1,270 | –1,250 | –1,125 | –1,100 | –1,120 | –1,120 | –1,060 | –1,050 |
| Of which non-controlling | |||||||||||
| interests | –670 | –675 | –655 | –620 | –580 | –565 | –555 | –555 | –550 | –525 | –475 |
| Profit from | |||||||||||
| property management 1) | 4,000 | 4,030 | 3,920 | 3,715 | 3,625 | 3,565 | 3,370 | 3,235 | 3,085 | 3,025 | 2,830 |
| Tax 2) | –870 | –875 | –855 | –775 | –765 | –750 | –730 | –700 | –665 | –650 | –610 |
| Profit after tax | 3,130 | 3,155 | 3,065 | 2,940 | 2,860 | 2,815 | 2,640 | 2,535 | 2,420 | 2,375 | 2,220 |
| Profit from property | |||||||||||
| management per share, SEK | 22.22 | 22.39 | 21.78 | 20.64 | 20.14 | 19.81 | 18.72 | 17.97 | 17.14 | 16.81 | 15.72 |
1) Attributable to parent company shareholders.
2) Mainly refers to deferred tax, which does not affect the cash flow.
In the current earning capacity an average exchange rate has been used for translation of the foreign subsidiaries' income statement items.
Profit from property management for the period amounted to SEK 1,136m (1,046), of which effect of changes in exchange rates amounted to SEK 12m (18). Profit from property management attributable to parent company shareholders increased by 7 % and amounted to SEK 965m (901), which corresponds to SEK 5.36 per share (5,01). Profit from property management includes SEK 126m (196) in respect of associated companies.
Net profit after tax for the period amounted to SEK 1,228m (1,390). Net profit after tax for the period attributable to parent company shareholders amounted to SEK 1,063m (1,188), corresponding to SEK 5.91 per share (6.60). Profit before tax was affected by changes in value in respect of investment properties of SEK 260m (708), changes in value of interest rate derivatives of SEK –172m (–99) and profit from participations in associated companies of SEK 99m (178).
Rental income increased by 13 % to SEK 2,023m (1,797), of which the effect of changes in exchange rates was SEK 25m (42). The increase was primarily due to acquisitions, new leases and completed projects for own management. The leasing portfolio was estimated to have a rental value on 31 March of SEK 8,461m (7,456). The average rental level for the entire real estate portfolio amounted to SEK 1,908/sq.m. (1,821) excluding project properties.
The like for like rental income has increased with 3.1 % (2.8) after adjustments for currency changes.
Rental income shows a considerable diversification of risks as regards tenants, sectors and locations. The economic occupancy rate amounted to 96 % (96) on 31 March. The total rental value of unlet areas at the end of the period amounted to SEK 361m (281).
Property costs amounted to SEK –534m (–509) during the period, of which the effect of changes in exchange rates was SEK –7m (–13).
Net operating income increased by 16 % to SEK 1,489m (1,288), which implies a surplus ratio of 74 % (72).
Operating costs normally vary with the seasons. The first and fourth quarters have higher costs than the other quarters, while the third quarter usually has the lowest cost level.
Balder carried out an individual internal valuation on 31 March of the entire real estate portfolio, see page 9. Unrealised changes in value during the period amounted to SEK 257m (717). Realised changes in value amounted to SEK 3m (–9). The average yield requirement as of 31 March amounted to 4.5 % (4.8), which is unchanged compared to year-end. The change in value during the period is attributable to improved net operating income.
Profit from sales of development properties is recognised when the property is taken into possession by the purchaser. Apart from the cost, selling and marketing expenses are included, which are expensed as they arise. No sales result has arisen during the period (–).
Management and administrative costs amounted to SEK –179m (–157) during the period, of which the effect of changes in exchange rates was SEK –2m (–4).
Balder owns property managing and project developing associated companies, see note 14 in Balder's Annual Report for 2019, and 44.1 % in Collector AB (publ) which is listed. Brinova Fastigheter AB (publ) is also listed and Balder's share amounts to 25.5 %.
During the period, Balder has subscribed for its share of the new issue in Collector AB of SEK 453m, in addition 50 % of the shares in Ängsladan Fastighetsförvaltning i Lund AB were acquired.
Profit from participations in associated companies amounted to SEK 99m (178) and Balder's participation in the associated companies profit from property management amounted to SEK 126m (196).
Profit before tax was impacted by SEK 1m (31) as a result of unrealised changes in value in respect of properties and interest rate derivatives. The tax expense for the period amounted to SEK –28m (–49).
Net financial items amounted to SEK –291m (–278), of which the effect of changes in exchange rates was SEK –3m (–7).
Changes in value of interest rate derivatives amounted to SEK –172m (–99). The negative change in value of derivatives during the period is due to the fact that the long interest rates have fallen during the period. Unrealised changes in value do not affect the cash flow.
The average interest rate was 1.6 % (1.7) on the closing date and 1.6 % (1.7) for the period.
The group's total tax amounted to SEK 30m (–247), of which effect of changes in exchange rates amounted to SEK –2m (–6). Current tax for the period amounts to SEK –84m (–58), mainly attributable to SATO Oyj and Balder Denmark. Current tax attributable to parent company shareholders amounted to SEK –59m (–40).
Deferred tax revenue for the period amounted to SEK 114m (–189). Deferred tax revenue have arisen during the period mainly due to negative exchange rate differences which have arisen from the translation of the company's Euro bonds. In the Group these are used for hedging of foreign net investments and are transferred to "Other comprehensive income".
Tax was calculated based on the applicable tax rate in each country. In Sweden, tax was calculated at 21.4 % based on current taxable income. Deferred tax liabilities and tax receivables were calculated at the lower tax rate of 20.6 %, which applies starting from 2021.
The group's deferred tax liability has been calculated as the value of the net of fiscal deficits and the temporary differences between the carrying amounts and values for tax purposes of properties and interest rate derivatives. Deferred tax liabilities amounted to SEK 11,475m (9,077).
Cash flow from operating activities before changes in working capital amounted to SEK 909m (700). Investing activities have burdened the cash flow by SEK –3,929m (–3,759).
During the period, acquisition of investment properties of SEK –1,707m (–2,125), investments in existing properties and projects of SEK –1,519m (–1,480), investments in property, plant and equipment, financial investments, associated companies and transactions with non-controlling interests SEK –869m (–264) and amortisation of lease liability SEK –2m (–) adds up to SEK –4,097m (–3,870).
These have been financed through cash flow from operating activities of SEK 348m (520), by divestments of investment properties of SEK 105m (82), financial investments of SEK 62m (29), shareholder contributions from non-controlling interests of SEK 16m (–) and net borrowings of SEK 4,193m (3,754), which adds up to SEK 4,723m (4,385).
Total cash flow for the period amounted to SEK 626m (516). In addition to unutilised credit facilities of SEK 8,868m (8,669), the group's cash and cash equivalents, financial investments and unutilised overdraft facilities amounted to SEK 3,850m (2,272) on 31 March.
The number of employees on 31 March amounted to 806 persons (691), of whom 339 were women (292). Balder is organised into seven regions. The head office with groupwide functions is located in Gothenburg.
The parent company's operations mainly consist of performing group-wide services but an important part relates to sales of services, principally to associated companies. Sales in the parent company amounted to SEK 98m (86) during the period.
Net profit after tax amounted to SEK –1,093m (–182). Other net financial items amounted to SEK –1,203m (–130) of which exchange rates differences amounted to SEK –1,289m (–254), changes in value of interest rate derivatives amounted to SEK –172m (–99)
Reported exchange differences mainly refer to the translation of the company's euro bonds, which from a group perspective are used for hedging of foreign net investments.
On 31 March Balder owned 1,327 investment properties (1,196) with a lettable area of 4,418 thousand sq.m. (4,084) and a value of SEK 148,553m (121,366). Balder's total rental value excluding projects amounted to SEK 8,430m (7,438).
In addition to investment properties Balder owns development properties with a value of SEK 2,667m (1,861). The value of the total property portfolio amounted to SEK 151,220m (123,227).
Balder's commercial properties are mainly located in the central parts of the major cities. Balder's residential properties are located in metropolitan areas and places that are growing and developing positively. Balder's ambition is to continue growing in selected markets.
1) The above table refers to the properties owned by Balder at the end of the period. Sold properties have been excluded and acquired properties have been estimated using full-year values. Other properties include hotel, educational, care, industrial and mixed-use properties.
Balder's investment properties are reported on the basis of internal valuations. The properties in Sweden, Denmark, Finland, Norway, Germany and United Kingdom are valued using the cash flow based method.
In Finland and Russia, in addition to the cash flow based method, the sales comparison method and valuation at acquisition cost are used. Properties under construction and project properties for own management are valued at market value reduced by estimated building expenditure and project risk, which usually results in valuation at cost.
On 31 March, Balder's average yield requirement amounted to 4.5 % (4.8) excluding project properties for own management, which is unchanged compared to year-end.
In order to quality-assure its internal valuations, Balder regularly allows parts of its portfolio to be externally valued and obtain second opinions on internal valuations. Historically, deviations between external and internal valuations have been insignificant.
The overall carrying amount of Balder's investment properties amounted to SEK 148,553m (121,366) on 31 March. The unrealised change in value during the period amounted to SEK 257m (717) and is attributable to improved net operating income.
During the period, a total of SEK 2,903m (3,342) was invested relating to investment properties, of which SEK 1,707m (2,125) related to acquisitions and SEK 1,195m (1,217) related to investments in existing properties and projects for own management. During the period only condominiums and land have been divested at a sales value of SEK 105m (82). Profit from the sales amounted to SEK 3m (–9).
On 31 March, Balder has project properties for own management amounting to SEK 5.8 billion (4.7). Projects with ongoing construction are included with SEK 5.1 billion (4.3) and projects where construction has not yet started amounts to SEK 0.7 billion (0.4). The ongoing construction work has an estimated total investment of approximately SEK 7.9 billion (7.6), which means that SEK 2.8 billion (3.3) remains to be invested. Most of the ongoing projects relate to residential projects. The projects comprise about 2,400 apartments and mainly refers to about 700 apartments in Copenhagen and about 1,100 apartments in Helsinki. The investments relate to owner apartments for rental use.
On 31 March, Balder has development properties amounting to SEK 2.7 billion (1.9). Projects with ongoing construction are included with SEK 1.5 billion (0.7) and projects where construction has not begun amounts to SEK 1.2 billion (1.2). The projects with ongoing construction has an estimated total investment of approximately SEK 2.7 billion (1.8), which means that SEK 1.2 billion (1.1) remains to invest. The majority of the development projects in progress refer to tenantowner's apartments and primarily involve approx. 600 tenantowner's apartments in Sweden.
A development property is a property that is held for refinement with the intention of being divested. These properties are continually recognised at cost and profit/loss is recognised when each property is completed, sold and handed over to the buyer.
| Change in carrying amount of properties | 2020 | 2019 | ||
|---|---|---|---|---|
| SEKm | Number 1) | SEKm | Number 1) | |
| Investment properties, 1 January | 141,392 | 1,298 | 116,542 | 1,185 |
| Investments in existing properties and projects | 1,195 | 1,217 | ||
| Acquisitions | 1,707 | 13 | 2,125 | 12 |
| Sales | –102 | – | –91 | –1 |
| Change in value of investment properties, unrealised | 257 | 717 | ||
| Currency changes | 4,103 | 856 | ||
| Reclassification | – | 16 | – | |
| Investment properties, 31 March | 148,553 | 1,327 | 121,366 | 1,196 |
| Development properties, 1 January | 2,344 | 1,598 | ||
| Investments in projects | 323 | 263 | ||
| Sales | – | – | ||
| Development properties, 31 March | 2,667 | 1,861 | ||
| Total real estate portfolio, 31 March | 151,220 | 123,227 |
1) Number of investment properties.
| Quarter | Number | Name of property | Property category | Lettable area, sq.m. | |
|---|---|---|---|---|---|
| Acquisitions | |||||
| One | 1 | Inom Vallgraven 4:5 | Gothenburg | Office | 3,585 |
| One | 1 | Palmen 3 | Linköping | Hotel | 11,086 |
| One | 1 | 92-52-18-6 (Tikkurilantie 123) | Vanda, Finland | Retail | 13,102 |
| One | 1 | 285-46-167-3 (Ristikalliontie 41) | Kotka, Finland | Retail | 3,100 |
| One | 1 | 286-3-3039-5 (Taitajantie 4) | Kouvola, Finland | Retail | 3,800 |
| One | 1 | 405-56-1-14 (Myllymäenkatu 6) | Lappeenranta, Finland | Retail | 4,400 |
| One | 1 | 106-18-1731-20 (Veikkarinkatu 7) | Hyvinkää, Finland | Retail | 2,645 |
| One | 1 | 109-11-33-2 (Tampereentie 169) | Hämeenlinna, Finland | Retail | 5,840 |
| One | 1 | 167-8-837-1 (Voimatie 16) | Joensuu, Finland | Retail | 8,282 |
| One | 1 | 297-24-20-2 (Leväsentie 33) | Kuopio, Finland | Retail | 7,770 |
| One | 1 | 398-23-111-4 (Ajokatu 261) | Lahti, Finland | Retail | 7,947 |
| One | 1 | 837-122-506-12 (Hataanpään Valtatie 42) | Tampere, Finland | Retail | 12,412 |
| One | 1 | 837-122-506-3 (Puistokuja 32) | Tampere, Finland | Retail | 5,865 |
| Total | 13 | 89,834 |
Balder owns 50 % of a number of property companies where Balder handles the management and administration, for further information, see page 23-25 in Balder's Annual Report for 2019. Balder's 50 %-owned associated companies are shown in the table below together with Balder's share of 49 % (49) in Sinoma Fastighets AB and 56 % (56) in Serena Properties AB where Balder has a joint control, for company website, see serenaproperties.se.
Apart from the 50 %-owned associated companies, Balder owns 44.1 % (44.1) in Collector AB (publ), 33 % (33) of Tornet Bostadsproduktion AB, 25.5 % (25.5) of Brinova Fastigheter AB (publ), 49 % (49) in Sjaelsö Management ApS, 20 % (20) in SHH Bostad AB and 25 % (25) in Rosengård Fastighets AB. For more information about these associated companies, see each companys website: collector.se, tornet.se, brinova.se, sjaelsoemanagement.dk, shhbostad.se and rosengardfastigheter.se.
| Number of properties 3) |
Lettable area, sq.m. |
Rental value, SEKm |
Rental value, SEK/sq.m. |
Rental income, SEKm |
Economic occupancy rate, % |
Carrying amount, SEKm |
Carrying amount, % |
|
|---|---|---|---|---|---|---|---|---|
| Distributed by region | ||||||||
| Stockholm | 81 | 209,187 | 312 | 1,492 | 294 | 94 | 5,490 | 45 |
| Gothenburg | 40 | 154,228 | 176 | 1,138 | 162 | 92 | 2,245 | 18 |
| Öresund | 22 | 65,005 | 100 | 1,545 | 88 | 88 | 1,571 | 13 |
| East | 26 | 100,261 | 135 | 1,346 | 132 | 97 | 1,946 | 16 |
| Total excluding projects | 169 | 528,681 | 723 | 1,368 | 676 | 93 | 11,253 | 92 |
| Projects for own management | 1 | 1 | 995 | 8 | ||||
| Total real estate portfolio | 169 | 528,681 | 724 | 1,368 | 676 | 93 | 12,247 | 100 |
| Distributed by property category | ||||||||
| Residential | 41 | 73,555 | 142 | 1,936 | 139 | 97 | 2,985 | 24 |
| Office | 29 | 99,933 | 147 | 1,473 | 133 | 90 | 2,245 | 18 |
| Retail | 60 | 240,688 | 290 | 1,207 | 278 | 96 | 3,914 | 32 |
| Other | 39 | 114,504 | 143 | 1,250 | 127 | 89 | 2,109 | 17 |
| Total excluding projects | 169 | 528,681 | 723 | 1,368 | 676 | 93 | 11,253 | 92 |
| Projects for own management | 1 | 1 | 995 | 8 | ||||
| Total real estate portfolio | 169 | 528,681 | 724 | 1,368 | 676 | 93 | 12,247 | 100 |
1) The above table refers to the properties owned by the associated companies at the end of the period. Sold properties have been excluded and acquired properties have been estimated using full-year values. Other properties include hotel, educational, care, industrial and mixed-use properties.
2) Refers to Balder's holding in Trenum AB, Fastighets AB Centur, Tulia AB, Sinoma Fastighets AB and Serena Properties AB.
3) Refers to the entire associated companies' portfolio.
| SEKm | 2020 31 March |
2019 31 March |
2019 31 Dec |
|---|---|---|---|
| Assets | |||
| Properties | 12,247 | 11,394 | 12,004 |
| Other assets | 250 | 62 | 243 |
| Cash and cash equivalents | 140 | 169 | 204 |
| Total assets | 12,637 | 11,625 | 12,450 |
| Shareholders' equity and liabilities | |||
| Equity/interest-bearing shareholder loan | 5,735 | 4,637 | 5,635 |
| Deferred tax liability | 677 | 549 | 657 |
| Interest-bearing liabilities | 5,684 | 5,695 | 5,671 |
| Other liabilities | 541 | 744 | 488 |
| Total equity and liabilities | 12,637 | 11,625 | 12,450 |
Carrying amount distributed by region, total real estate portfolio, %
In order to limit the risk of lower rental income and consequently a weakened occupancy rate, Balder strives to develop long-term relationships with the company's existing customers. Balder has a good diversification as regards the distribution between commercial properties and residential properties as well as the geographical distribution. The diversification strengthens the possibilities of maintaining a steady and satisfactory occupancy rate. Balder's commercial leases have an average lease term of 6.9 years (7.7). Balder's 10 largest leases represent 4.7 % (4.7) of total rental income and the average lease term amounts to 12.3 years (13.6).
No individual lease accounts for more than 0.7 % (0.7) of Balder's total rental income and no individual customer accounts for more than 3.6 % (4.0) of total rental income.
| Maturity date | Number of leases |
Proportion, % | Contracted rent, SEKm |
Proportion, % |
|---|---|---|---|---|
| 2020 | 734 | 22 | 199 | 2 |
| 2021 | 1,130 | 34 | 421 | 5 |
| 2022 | 566 | 17 | 393 | 5 |
| 2023 | 490 | 15 | 329 | 4 |
| 2024– | 450 | 13 | 1,823 | 23 |
| Total | 3,370 | 100 | 3,166 | 39 |
| Residential 1) | 40,050 | 4,845 | 60 | |
| Car park 1) | 5,119 | 19 | 0 | |
| Garage 1) | 5,223 | 69 | 1 | |
| Total | 53,762 | 8,100 | 100 |
| as of 31/03/2020 | |
|---|---|
| • I.A. Hedin Bil AB |
1) Normally runs subject to a period of notice of three months.
FASTIGHETS AB BALDER · INTERIM REPORT JANUARY-MARCH 2020 13
Balder has assets in Sweden, Denmark, Finland, Russia, Norway, Germany and United Kingdom which means that the Group is exposed to currency risks. Balder therefore has a diversified financing structure with bonds issued under a domestic MTN programme and a EMTN programme. In addition to bonds, bank financing in several currencies and a commercial paper programme in Euro and Swedish kronor
are used. The single largest source of funding is bonds issued on the European bond market in Euro. In addition to these financing sources, Balder also has issued Hybrid capital which has a maturity of 60 years and is considered as 50 % equity by the credit rating agencies.
During January, Balder issued a bond of EUR 300m under the EMTN programme.
| Financial key ratios | 2020 31 March |
2019 31 March |
2019 31 Dec |
|---|---|---|---|
| Interest-bearing liabilities excl. Hybrid capital, SEKm | 84,845 | 67,935 | 77,590 |
| Hybrid capital, SEKm | 3,879 | 3,648 | 3,652 |
| Available liquidity including confirmed loan commitments, SEKm | 12,718 | 10,941 | 11,925 |
| Average fixed credit term, years | 5.9 | 5.5 | 5.8 |
| Average interest rate refixing period, years | 3.3 | 2.8 | 3.1 |
| Net debt to total assets (financial covenant 1) < 65), % | 49.7 | 49.9 | 48.4 |
| Interest coverage ratio (financial covenant 1) > 1.8), times | 5.1 | 5.0 | 5.2 |
| Secured debt/Total assets (financial covenant 1) < 45), % | 15.6 | 20.1 | 16.2 |
| Net debt/EBITDA, times | 14.6 | 12.8 | 13.0 |
| Credit rating S&P | BBB Stable outlook |
BBB Stable outlook |
BBB Stable outlook |
| Calculation of net debt | |||
| Interest-bearing liabilities excl. Hybrid capital, SEKm | 84,845 | 67,935 | 77,590 |
| Hybrid capital (50 % is treated as equity by rating agencies), SEKm | 1,940 | 1,824 | 1,826 |
| Cash and cash equivalents and financial investments, SEKm | –3,500 | –1,921 | –2,902 |
| Net debt | 83,284 | 67,838 | 76,514 |
1) Financial covenants refers to obligations that Balder has to its financiers in the form of financial key ratios.
| Financial targets | Target | Outcome | |
|---|---|---|---|
| Equity/assets ratio, % | min. | 40.0 | 37.2 |
| Net debt to total assets, % | max. | 50.0 | 49.7 |
| Interest coverage ratio, times | min. | 2.0 | 5.1 |
| Year | SEKm | Proportion, % |
|---|---|---|
| 2020 | 8,316 | 9 |
| 2021 | 8,329 | 9 |
| 2022 | 10,916 | 12 |
| 2023 | 9,312 | 10 |
| 2024 | 11,691 | 13 |
| 2025 | 9,184 | 10 |
| 2026 | 8,518 | 10 |
| 2027 | 5,778 | 7 |
| 2028 | 3,482 | 4 |
| 2029 | 1,017 | 1 |
| 2030- | 12,182 | 14 |
| Total | 88,724 | 100 |
| Year | SEKm | Interest, % | Proportion, % |
|---|---|---|---|
| 2020 | 36,510 | 1.1 | 41 |
| 2021 | 5,136 | 2.3 | 6 |
| 2022 | 6,644 | 1.4 | 7 |
| 2023 | 4,969 | 3.0 | 6 |
| 2024 | 4,552 | 1.6 | 5 |
| 2025 | 7,866 | 2.1 | 9 |
| 2026 | 7,970 | 2.2 | 9 |
| 2027 | 6,542 | 1.1 | 7 |
| 2028 | 3,325 | 1.3 | 4 |
| 2029 | 2,964 | 1.6 | 3 |
| 2030- | 2,246 | 2.3 | 3 |
| Total | 88,724 | 1.6 | 100 |
In early 2020, the world has been shaken by a global virus infection, Covid-19, which has had a significant impact on individuals, companies and society both in Sweden and in the rest of the world. The impact during the first quarter was relatively small, as the effects of the outbreak of the pandemic first occurred during March. The financial effects of this will only become apparent in the coming quarters, but it is not currently possible to estimate the full extent of the pandemic. See more on page 4.
Otherwise, no events of significant importance for Fastighets AB Balder's position have occurred after the end of the reporting period.
Balder receives fees from associated companies and Erik Selin Fastigheter AB for property and company management services. These fees amounted to SEK 19m (20) during the period and are reported in management and administrative costs. All transactions have been priced on market terms.
Balder's operations, financial position and results may be affected by a number of risks and uncertainty factors. These are described in the Annual Report for 2019, on pages 45-48. Otherwise, no significant changes has been noted.
Balder applies IFRS (International Financial Reporting Standards) as adopted by the European Union in its consolidated accounts and the interpretations of these (IFRIC). This interim report is prepared in accordance with IAS 34, Interim Financial Reporting. In addition, relevant provisions of the Swedish Annual Accounts Act and the Swedish Securities Markets Act have also been applied. The parent company has prepared its financial statements in accordance with the Annual Accounts Act, the Securities Markets Act and RFR 2, Accounting for Legal Entities. The accounting principles follow those reported in the Annual Report 2019.
New and changed standards and principles that came into force as of January 1, 2020 or later, is not considered to have any material impact on the Group's financial reports.
During Q1 2020, the "Consolidated statement of financial position including listed associated companies at market value" was removed from the interim report. This adjusted statement of financial position aimed to clarify the listed associated companies' market value in Balder. However, as the Balder Group has grown in recent years, associated companies at market value is no longer estimated to represent a significant part of the Group's equity. Therefore, this is no longer considered to provide added value to the reader.
This interim report has not been subject to review by the company's auditors.
Gothenburg 8 May 2020
Erik Selin Chief Executive Officer
| SEKm | 2020 Jan-March |
2019 Jan-March |
2019/2020 April-March |
2019 Jan-Dec |
|---|---|---|---|---|
| Rental income | 2,023 | 1,797 | 7,835 | 7,609 |
| Property costs | –534 | –509 | –1,990 | –1,966 |
| Net operating income | 1,489 | 1,288 | 5,845 | 5,643 |
| Management and administrative costs | –179 | –157 | –686 | –664 |
| Participations in the profits of associated companies | 99 | 178 | 797 | 876 |
| – of which profit from property management | 126 | 196 | 718 | 787 |
| – of which changes in value | 1 | 31 | 267 | 297 |
| – of which tax | –28 | –49 | –188 | –209 |
| Other income/costs | –9 | –3 | 1 | 7 |
| Net financial items | –291 | –278 | –1,183 | –1,170 |
| – of which cost of leases/ground rent | –16 | –15 | –64 | –63 |
| Profit including changes in value and tax in associated companies | 1,109 | 1,028 | 4,774 | 4,693 |
| – of which Profit from property management | 1,136 | 1,046 | 4,695 | 4,604 |
| Changes in value | ||||
| Changes in value investment properties, realised | 3 | –9 | 26 | 14 |
| Changes in value investment properties, unrealised | 257 | 717 | 9,102 | 9,562 |
| Income sale development properties | – | – | 387 | 387 |
| Costs sale development properties | – | – | –292 | –292 |
| Changes in value derivatives | –172 | –99 | –252 | –180 |
| Changes in value total | 88 | 609 | 8,971 | 9,492 |
| Profit before tax | 1,197 | 1,637 | 13,745 | 14,185 |
| Income tax | 30 | –247 | x –2,382 |
–2,659 |
| Net profit for the period/year | 1,228 | 1,390 | 11,363 | 11,526 |
| Net profit for the period/year attributable to: | ||||
| Parent company shareholders | 1,063 | 1,188 | 8,834 | 8,958 |
| Non-controlling interests | 164 | 202 | 2,530 | 2,568 |
| 1,228 | 1,390 | 11,363 | 11,526 | |
| Other comprehensive income – items that may be subsequently reclassified to profit or loss |
||||
| Translation difference relating to foreign operations (net after hedge accounting) | 485 | 99 | 394 | 8 |
| Cash flow hedges after tax | –18 | –63 | –11 | –55 |
| Participation in other comprehensive income of associated companies | 9 | 5 | 7 | 3 |
| Total comprehensive income for the period/year | 1,703 | 1,431 | 11,754 | 11,482 |
| Total comprehensive income for the period/year attributable to: | ||||
| Parent company shareholders | 936 | 1,154 | 8,647 | 8,865 |
| Non-controlling interests | 768 | 278 | 3,107 | 2,617 |
| 1,703 | 1,431 | 11,754 | 11,482 | |
| Profit from property management | 1,136 | 1,046 | 4,695 | 4,604 |
| Of which non-controlling interests part of Profit from property management | –172 | –145 | –608 | –581 |
| Profit from property management attributable to parent company shareholder | 965 | 901 | 4,086 | 4,023 |
| Profit from property management per share, SEK | 5.36 | 5.01 | 22.70 | 22.35 |
| Profit after tax per share, SEK | 5.91 | 6.60 | 49.08 | 49.77 |
Thers is no dilutive effect as no potential shares arise.
| SEKm | 2020 31 March |
2019 31 March |
2019 31 Dec |
|---|---|---|---|
| Assets | |||
| Investment properties | 148,553 | 121,366 | 141,392 |
| Development properties | 2,667 | 1,861 | 2,344 |
| Lease contract; Right-of-use assets | 1,573 | 1,534 | 1,541 |
| Other fixed assets | 172 | 138 | 166 |
| Participations in associated companies | 7,768 | 6,503 | 7,018 |
| Other receivables | 3,325 | 2,599 | 2,566 |
| Cash and cash equivalents and financial investments | 3,500 | 1,921 | 2,902 |
| Total assets | 167,558 | 135,924 | 157,928 |
| Shareholders' equity and liabilities Shareholders' equity 1) Deferred tax liability |
60,442 11,475 |
48,839 9,077 |
58,725 11,285 |
| Interest-bearing liabilities | 88,724 | 71,583 | 81,242 |
| –of which Hybrid capital 2) | 3,879 | 3,648 | 3,652 |
| Derivatives | 1,287 | 1,178 | 1,210 |
| Lease contract | 1,577 | 1,534 | 1,543 |
| Other liabilities | 4,053 | 3,714 | 3,923 |
| Total equity and liabilities | 167,558 | 135,924 | 157,928 |
| 1) Of which non-controlling interests 2) 50 % of Hybrid capital is treated as equity by the rating agencies and thus decreases interest bearing liabilities when calculating the debt/equity ratio and net debt to total assets ratio and increases equity when calculating the equity/assets ratio. |
10,501 1,940 |
7,539 1,824 |
9,714 1,826 |
| SEKm | 2020 31 March |
2019 31 March |
2019 31 Dec |
|---|---|---|---|
| Opening equity | 58,725 | 47,408 | 47,408 |
| Total comprehensive income for the period/year | 1,703 | 1,431 | 11,482 |
| Transactions with non-controlling interests | –2 | –3 | –35 |
| Dividend to non-controlling interests | – | – | –137 |
| Non-controlling interests arising on the acquisition of subsidiary | – | 2 | 8 |
| Shareholder contributions from non-controlling interests | 16 | – | – |
| Closing equity | 60,442 | 48,839 | 58,725 |
| SEKm | 2020 Jan-March |
2019 Jan-March |
2019 Jan-Dec |
|---|---|---|---|
| Net operating income | 1,489 | 1,288 | 5,643 |
| Other income/costs | –9 | –3 | 7 |
| Management and administrative costs | –179 | –157 | –664 |
| Reversal of depreciation | 10 | 10 | 42 |
| Net financial items paid | –285 | –337 | –1,419 |
| Taxes paid | –117 | –101 | –321 |
| Cash flow from operating activities before change in working capital | 909 | 700 | 3,288 |
| Change in operating receivables | –597 | –298 | –262 |
| Change in operating liabilities | 36 | 118 | 183 |
| Cash flow from operating activities | 348 | 520 | 3,209 |
| Acquisition of investment properties | –1,707 | –2,125 | –7,972 |
| Acquisition/Divestment of property, plant and equipment | –16 | –24 | –85 |
| Purchase of financial investments | –34 | –50 | –594 |
| Acquisition of shares in associated companies/Capital contribution to associated | |||
| companies/Loans to associated companies | –817 | –187 | –601 |
| Investment in existing properties and projects | –1,519 | –1,480 | –8,133 |
| Transactions with non-controlling interests | –2 | –3 | –35 |
| Sale of investment properties | 105 | 82 | 1,050 |
| Sale of development properties | – | – | 387 |
| Sale of financial investments | 62 | 29 | 60 |
| Sale of shares in associated companies | – | – | 15 |
| Dividend paid from associated companies | – | – | 42 |
| Cash flow from investing activities | –3,929 | –3,759 | –15,867 |
| Dividend paid to non-controlling interests | – | – | –137 |
| Amortisation of lease liability | –2 | – | –26 |
| Shareholder contributions from non-controlling interests | 16 | – | – |
| Loans raised | 6,174 | 4,661 | 25,169 |
| Amortisation/redemption of loans sold properties/changes in overdraft facilities | –1,982 | –907 | –11,527 |
| Cash flow from financing activities | 4,206 | 3,754 | 13,479 |
| Cash flow for the period/year | 626 | 516 | 821 |
| Cash and cash equivalents at the start of the period/year | 1,379 | 558 | 558 |
| Cash and cash equivalents at the end of the period/year | 2,004 | 1,073 | 1,379 |
| Cash and cash equivalents | 2,004 | 1,073 | 1,379 |
| Unutilised overdraft facilities | 350 | 350 | 350 |
| Unutilised credit facilities | 8,868 | 8,669 | 8,673 |
| Financial investments | 1,496 | 848 | 1,523 |
| Available liquidity including confirmed credit commitments | 12,718 | 10,941 | 11,925 |
| SEKm | 2020 Jan-March |
2019 Jan-March |
2019/2020 April-March |
2019 Jan-Dec |
|---|---|---|---|---|
| Rental income | ||||
| Helsinki | 630 | 589 | 2,475 | 2,433 |
| Stockholm | 330 | 297 | 1,268 | 1,234 |
| Gothenburg | 373 | 323 | 1,477 | 1,426 |
| Copenhagen | 169 | 137 | 598 | 566 |
| South | 145 | 135 | 599 | 589 |
| East | 308 | 254 | 1,136 | 1,083 |
| North | 67 | 62 | 283 | 277 |
| Total | 2,023 | 1,797 | 7,835 | 7,609 |
| Net operating income | ||||
| Helsinki | 441 | 402 | 1,786 | 1,747 |
| Stockholm | 259 | 228 | 1,004 | 973 |
| Gothenburg | 277 | 238 | 1,139 | 1,099 |
| Copenhagen | 138 | 109 | 465 | 436 |
| South | 108 | 106 | 473 | 471 |
| East | 219 | 165 | 772 | 717 |
| North | 46 | 40 | 205 | 199 |
| Total | 1,489 | 1,288 | 5,845 | 5,643 |
The group's internal reporting of operations is divided into the above segments. Total net operating income corresponds with reported net operating income in the income statement. The difference between net operating income of SEK 1,489m (1,288) and profit before tax of SEK 1,197m (1,637) consists of changes in value of investment properties of SEK 260m (708), other income/costs SEK –9m (–3), management and administrative costs of SEK –179m (–157), participations in profits of associated companies of SEK 99m (178), net financial items of SEK –291m (–278) and changes in value of derivatives of SEK –172m (–99).
| SEKm | 2020 31 March |
2019 31 March |
2019 31 Dec |
|---|---|---|---|
| Real estate portfolio | |||
| Helsinki | 42,004 | 31,544 | 38,132 |
| Stockholm | 26,922 | 24,053 | 26,331 |
| Gothenburg | 29,489 | 23,134 | 28,966 |
| Copenhagen | 14,453 | 11,271 | 13,582 |
| South | 10,274 | 9,310 | 10,196 |
| East | 14,910 | 12,864 | 14,072 |
| North | 4,735 | 4,484 | 4,792 |
| Total excluding projects | 142,786 | 116,660 | 136,071 |
| Projects for own management | 5,766 | 4,706 | 5,320 |
| Total investment properties | 148,553 | 121,366 | 141,392 |
| Development properties | 2,667 | 1,861 | 2,344 |
| Total real estate portfolio | 151,220 | 123,227 | 143,736 |
The carrying amounts of properties have during the period changed by investments, acquisitions, divestments, unrealised changes in value and currency changes, with SEK 3,872m in Helsinki region, SEK 591m in the Stockholm region, SEK 523m in the Gothenburg region, SEK 871m in Copenhagen region, SEK 78m in South region, SEK 838m in the East region and SEK –58m in the North region. The Group's projects for own management has increased by SEK 446m and the Group's development properties has increased by SEK 323m. SATO's property portfolio is divided between the regions Helsinki and East. The real estate holdings in Norway is classified in the North region, the real estate holdings in Denmark in the Copenhagen region and the properties in Germany and United Kingdom in the South region.
| 2020 Jan-March |
2019 Jan-March |
2019/2020 April-March |
2019 Jan-Dec |
|
|---|---|---|---|---|
| Share-related | ||||
| Average number of shares, thousands | 180,000 | 180,000 | 180,000 | 180,000 |
| Profit after tax, SEK | 5.91 | 6.60 | 49.08 | 49.77 |
| Profit after tax excluding unrealised changes in value, SEK | 5.63 | 4.21 | 20.16 | 18.75 |
| Profit from property management, SEK | 5.36 | 5.01 | 22.70 | 22.35 |
| Net operating income, SEK | 6.80 | 5.84 | 26.70 | 25.74 |
| Outstanding number of shares, thousands | 180,000 | 180,000 | 180,000 | 180,000 |
| Shareholders' equity, SEK | 277.45 | 229.44 | 277.45 | 272.28 |
| Long-term net asset value (NAV), SEK | 348.35 | 286.41 | 348.35 | 341.70 |
| Share price on the closing date, SEK | 357.00 | 298.00 | 357.00 | 433.20 |
| Property-related | ||||
| Rental value full-year, SEK/sq.m. | 1,908 | 1,821 | 1,908 | 1,921 |
| Rental income full-year, SEK/sq.m. | 1,827 | 1,753 | 1,827 | 1,850 |
| Economic occupancy rate, % | 96 | 96 | 96 | 96 |
| Vacancy rate, % | 4 | 4 | 4 | 4 |
| Surplus ratio, % | 74 | 72 | 75 | 74 |
| Carrying amount, SEK/sq.m. | 32,320 | 28,568 | 32,320 | 31,613 |
| Number of properties | 1,327 | 1,196 | 1,327 | 1,298 |
| Lettable area, sq.m. thousands | 4,418 | 4,084 | 4,418 | 4,304 |
| Profit from property management, attributable | ||||
| to parent company shareholders, SEKm | 965 | 901 | 4,086 | 4,023 |
| Financial | ||||
| Return on equity, % | 8.3 | 8.6 | 19.4 | 20.1 |
| Return on total assets, % | 3.5 | 4.3 | 9.8 | 10.7 |
| Interest coverage ratio, times | 5.1 | 5.0 | 5.2 | 5.2 |
| Equity/assets ratio, % | 37.2 | 37.3 | 37.2 | 38.3 |
| Debt/equity ratio, times | 1.4 | 1.4 | 1.4 | 1.4 |
| Net debt to total assets, % | 49.7 | 49.9 | 49.7 | 48.4 |
| Net debt/EBITDA, times | 14.6 | 12.8 | 13.9 | 13.0 |
| SEKm | 2020 Jan-March |
2019 Jan-March |
2019/2020 April-March |
2019 Jan-Dec |
|---|---|---|---|---|
| Net sales | 98 | 86 | 373 | 361 |
| Administrative costs | –99 | –87 | –375 | –363 |
| Operating profit | –2 | –1 | –3 | –2 |
| Profit from financial items | ||||
| Dividends from subsidiaries | – | – | 800 | 800 |
| Other net financial items | –1,203 | –130 | –879 | 194 |
| – of which exchange rate differences | –1,289 | –254 | –1,286 | –251 |
| Changes in value of derivatives | –172 | –99 | –252 | –180 |
| Profit before appropriations and taxes | –1,376 | –230 | –334 | 812 |
| Appropriations | ||||
| Group contributions | – | – | 229 | 229 |
| Profit before tax | –1,376 | –230 | –105 | 1,042 |
| Income tax | 283 | 48 | 219 | –16 |
| Net profit for the period/year 1) | –1,093 | –182 | 114 | 1,025 |
1) The parent company has no items reported in other comprehensive income and therefore total comprehensive income for the period/year is equal with net profit for the period/year.
| SEKm | 2020 31 March |
2019 31 March |
2019 31 Dec |
|---|---|---|---|
| Assets | |||
| Property, plant and equipment | 24 | 20 | 23 |
| Financial non-current assets | 14,227 | 11,569 | 13,347 |
| Receivables from Group companies | 54,846 | 40,811 | 52,646 |
| Current receivables | 311 | 180 | 206 |
| Cash and cash equivalents and financial investments | 2,323 | 1,735 | 1,995 |
| Total assets | 71,731 | 54,315 | 68,217 |
| Shareholders' equity and liabilities | |||
| Shareholders' equity | 11,160 | 11,046 | 12,253 |
| Interest-bearing liabilities | 49,404 | 36,904 | 43,862 |
| –of which Hybrid capital | 3,879 | 3,648 | 3,652 |
| Liabilities to Group companies | 10,148 | 5,574 | 10,966 |
| Derivatives | 798 | 545 | 626 |
| Other liabilities | 221 | 246 | 511 |
| Total equity and liabilities | 71,731 | 54,315 | 68,217 |
Balder's share is listed on Nasdaq Stockholm, Large Cap segment. The company's market capitalisation as of 31 March amounted to SEK 64,260m (53,640).
The principal owner in Fastighets AB Balder is Erik Selin Fastigheter AB, which owns 36.4 % (36.4) of the capital and 49.9 % (49.9) of the votes. Foreign ownership amounts to approximately 27 % (26) of outstanding shares.
At the end of the period, approximately 22,000 shareholders (13,400) held shares. During the period, approximately 41.9 million shares were traded (14.6) which corresponds to an average of about 666,000 shares per trading day (261,000). The annual turnover rate amounted to 93 % (33). The price of the share was SEK 357.00 (298.00) on 31 March, corresponding to an decrease of 18 % since year-end.
On 31 March, the share capital in Balder amounted to SEK 180,000,000 distributed among 180,000,000 shares. Each share has a quota value of SEK 1, where of 11,229,432 shares are of Class A and 168,770,568 of Class B. The total number of outstanding shares as of 31 March amounts to 180,000,000. Each Class A share carries one vote and each Class B share carries one tenth of one vote.
| Owner | A shares | B shares | Total number of shares |
Capital, % | Votes, % |
|---|---|---|---|---|---|
| Erik Selin via company | 8,309,328 | 57,210,900 | 65,520,228 | 36.4 | 49.9 |
| Arvid Svensson Invest AB | 2,915,892 | 13,542,540 | 16,458,432 | 9.1 | 15.2 |
| Swedbank Robur fonder | – | 8,554,906 | 8,554,906 | 4.8 | 3.0 |
| SEB Investment Management | – | 7,691,413 | 7,691,413 | 4.3 | 2.7 |
| Länsförsäkringar fondförvaltning AB | – | 6,430,278 | 6,430,278 | 3.6 | 2.3 |
| Handelsbanken Fonder AB | – | 5,565,482 | 5,565,482 | 3.1 | 2.0 |
| Vanguard | – | 3,487,304 | 3,487,304 | 1.9 | 1.2 |
| AMF Försäkring och Fonder | – | 2,793,542 | 2,793,542 | 1.6 | 1.0 |
| Second Swedish National Pension Fund | – | 2,624,520 | 2,624,520 | 1.5 | 0.9 |
| Livförsäkringsbolaget Skandia | – | 2,180,657 | 2,180,657 | 1.2 | 0.8 |
| Other | 4,212 | 58,689,026 | 58,693,238 | 32.6 | 20.9 |
| Total | 11,229,432 | 168,770,568 | 180,000,000 | 100 | 100 |
Share price/Net asset value (NAV), % Share price/Prot from property management, times
The company presents a number of financial metrics in the interim report that are not defined according to IFRS (so-called Alternative Performance Measures according to ESMA's guidelines). These performance measures provide valuable supplementary information to investors, the company's management and other stakeholders since they facilitate effective evaluation and analysis of the company's financial position and performance. These alternative performance measures are not always comparable with measures used by other companies and shall therefore be considered as a complement to measures defined according to IFRS. Fastighets AB Balder will apply these alternative performance measures consistently over time. The key ratios are alternative performance measures according to ESMA's guidelines unless otherwise stated. A description follows below of how Fastighets AB Balder's key ratio's are defined and calculated.
Profit after tax in relation to average equity. The values were converted to a full-year basis in the interim accounts without taking account of seasonal variations that normally arise in the operations and with the exception of changes in value.
Profit before tax with addition of net financial items in relation to average balance sheet total. The values were converted to a full-year basis in the interim accounts without taking account of seasonal variations that normally arise in the operations and with the exception of changes in value.
Net debt in relation to total assets.
Profit from property management with addition of profit from sales of development properties with reversal of net financial items. In the interim financial statements, EBITDA were converted to a full-year basis, with the exception of profit from sale of development properties.
Profit including changes in value and tax in associated companies with reversal of changes in value and tax as regards participation in profits of associated companies. When calculating profit from property management before tax attributable to parent company shareholders, the profit from property management is also reduced with the noncontrolling interests' share.
Interest expenses in the period recalculated to annual value in relation to the average interest-bearing liabilities.
Interest-bearinging liabilities decreased by cash and cash equivalents, financial investments and 50 % of Hybrid capital which is treated as 50 % equity by the rating agencies.
A bond with a maturity of 60 years. The bond is reported as interest bearing liability but is treated as 50 % equity by the rating agencies.
Profit including changes in value and tax in associated companies with reversal of net financial items excluding ground rents and changes in value and tax as regards participation in profits of associated companies, in relation to net financial items excluding ground rents.
Interest-bearing liabilities decreased by 50 % of Hybrid capital in relation to shareholders' equity.
Shareholders' equity including non-controlling interests and 50 % of hybrid capital in relation to the balance sheet total at the end of the period.
Shareholders' equity in relation to the number of outstanding shares at the end of the period.
Profit from property management attributable to the parent company shareholders divided by the average number of outstanding shares.
The number of outstanding shares at the start of the period, adjusted by the number of shares issued during the period weighted by the number of days that the shares have been outstanding in relation to the total number of days during the period.
Equity per share with reversal of interest rate derivatives and deferred tax according to balance sheet.
Profit attributable to the parent company shareholders in relation to average number of shares.
Estimated net operating income on an annual basis in relation to the fair value of the properties at the end of the period.
Rental income less property costs.
Contracted rent for leases which are running at the end of the period in relation to rental value.
Refers to properties constructed with the intention of being divested after completion.
Refers to both investment properties and development properties.
Classified according to the principal use of the property. The break-down is made into office, retail, residential and other properties. Other properties include hotel, educational, care, industrial/warehouse and mixed-use properties. The property category is determined by what the largest part of the property is used for.
This item includes direct property costs, such as operating expenses, utility expenses, maintenance and property tax.
Refers to properties that are held with the objective of generating rental income or an increase in value or a combination of these.
Contracted rent and estimated market rent for vacant premises.
Net operating income in relation to rental income.
1) The key ratio is operational and is not considered to be a alternative key ratio according to ESMA's guidelines.
The information in this report is such that Fastighets AB Balder (publ) is obliged to disclose according to the Swedish Securities Markets Act and/or the Swedish Financial Instruments Trading Act. This information has been published at 08.00 a.m. on May 8, 2020.
For additional information, please contact CEO Erik Selin, telephone +46 706 074 790 or CFO Magnus Björndahl, telephone +46 735 582 929.
Overall information about the company's operations, board of directors and management, financial reporting and press releases, may be found on Balder's website, balder.se.
Annual General Meeting 11 May 2020 Interim report Jan-June 2020 16 July 2020 Interim report Jan-Sep 2020 5 November 2020 Year-end report 2020 11 February 2021
| Head office | Parkgatan 49 · Box 53 121 · 400 15 Gothenburg · Tel: +46 31-10 95 70 · Fax: +46 31-10 95 99 |
|---|---|
| Letting | Tel: +46 20-151 151 |
| Customer service Tel: +46 774-49 49 49 | |
| Region | |
| Gothenburg | Parkgatan 49 · Box 53 121 · 400 15 Gothenburg · Tel: +46 31-10 95 70 |
| Timmervägen 9 A · 541 64 Skövde · Tel: +46 500-47 88 50 | |
|---|---|
| Helsinki | Panuntie 4 · PO Box 401 · 00610 Helsinki · Tel: +358-201 34 4000 |
| North | Forskarvägen 27 · 804 23 Gävle · Tel: +46 26-54 55 80 |
| Sandbäcksgatan 5 · 653 40 Karlstad · Tel: +46 54-14 81 80 | |
| Affärsgatan 4 D · 862 31 Kvissleby · Tel: +46 60-52 45 50 | |
| Stockholm | Tulegatan 2A · 113 58 Stockholm · Tel: +46 8-735 37 70 |
| Vårby Allé 18 · 143 40 Vårby · Tel: +46 8-735 37 70 | |
| South | Kalendegatan 26 · 211 35 Malmö · Tel: +46 40-600 96 50 |
| Esplanaden 15 · 265 34 Åstorp · Tel: +46 42-569 40 | |
| Bryggaregatan 7 · 252 27 Helsingborg · Tel: +46 42-17 21 30 | |
| Copenhagen | Vesterbrogade 1 E, 5. sal · 1620 København V · Tel: +45-88 13 61 51 |
| East | Hospitalsgatan 11 · 602 27 Norrköping · Tel: +46 11-15 88 90 |
| Rönnbergagatan 10 · 723 46 Västerås · Tel: +46 21-10 98 90 |
This report is a translation of the Swedish Interim Report January-March 2020. In the event of any disparities between this report and the Swedish version, the latter will have priority.
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