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Platzer Fastigheter Holding
Quarterly Report • Apr 16, 2020
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Quarterly Report
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Interim Report Q1 2020
1 January –31 March
- Platzer stable and enduring in Covid-19 outbreak
- Building Committee gives green light for detailed development plan for Södra Änggården
- After the end of the reporting period: Platzer and Bockasjö set up JV to develop Sörreds Logistikpark
Property value SEK 21,127 million
Total area 820,000 sq. m.
Properties 68
Income from property management / Q1 Fastighetsvärde
0
0
13 14 15 16 17
Fastighetsvärde
13 14 15 16 17
Mkr
0
Mkr
13 14 15 16 17
Fastighetsvärde
Fastighetsvärde
Mkr
2016 2017 2018 2019 2020
Fastighetsvärde Property portfolio / Q1
- Rental income increased to SEK 285 million (277).
- Income from property management increased to SEK 183 million (148).
- Profit for the period increased to SEK 429 million (273).
- Property portfolio increased in value to SEK 21,127 million (20,479).
- Earnings per share increased to SEK 3.56 (2.24).
| Key Performance Indicators | Q1 2020 | Q1 2019 | Full year 2019 |
|---|---|---|---|
| Long-term net asset value (EPRA NAV) per share | 89.02 | 73.58 | 84.00 |
| Interest coverage ratio (multiple) | 4.1 | 4.4 | 4.3 |
| Loan-to-value ratio, % | 48 | 52 | 49 |
| Investment yield, % | 4.2 | 4.4 | 4.3 |
| Surplus ratio, % | 76 | 74 | 74 |
| Economic occupancy rate, % | 94 | 94 | 94 |
Platzer stable and enduring in Covid-19 outbreak
The Covid-19 outbreak has had major consequences globally for both private individuals and companies. Many people have died as a result of the virus and many companies are facing significant problems because they are having to operate at reduced capacity or at worst not at all.
Platzer is a commercial property company whose tenants represent a broad spectrum of industry, authorities, the region and municipalities in the Gothenburg area. We have low exposure to tenants in the infrequent purchases retail, restaurant and hotel segments, which are the sectors which have been hardest hit in the first phase of the pandemic. However, as the consequences of Covid-19 for society in general and business in particular continue to grow, over time most of our tenants will be affected either directly or indirectly by the spread of the coronavirus.
It is the uncertainty relating to the time aspect of Covid-19
that makes it especially hard to assess the kind of input required from all who own and manage some form of business operations, including Platzer, to keep society running as far as possible. This is something I feel we all need to contribute to. If we can keep society running where this is possible both from a commercial point of view and from an infection risk perspective, thus avoiding the need to burden future generations of taxpayers any more than is absolutely necessary, then we must strive to do so.
It therefore feels particularly good in these times to be the CEO of a company that so far during this pandemic has not needed to rely on any public support programmes in order to 100% meet all commitments in respect of deliveries from operations and maintenance services suppliers, consultants, contractors and lenders. The same applies to salaries to our staff and dividends to our shareholders.
Stability in difficult times
The knowledge of what has happened since mid-March means that a comment on the first quarter will inevitably and necessarily focus more on the impact of Covid-19 on Platzer and less on the development of the business in the first quarter. I am incredibly grateful that we enter this crisis in better shape than ever before. We have solid major shareholders, a large proportion of bank borrowings, a high and stable surplus ratio, and strong suppliers, cooperation partners and building contractors, as well as skilled and driven staff. These things count in our favour and mean that we are in an incredibly stable position and able to endure in these times of great turmoil.
Strong results in first quarter
Because rents are normally paid quarterly in advance, paradoxically, the first quarter of 2020 was a record quarter for Platzer. The operating surplus was SEK 216 million, the largest ever reported by Platzer. The increase in value amounted to SEK 449 million and the EPRA NAV was SEK 89 per share, an increase of 6% in the first quarter and up by more than 20% on a rolling 12-month basis. Only 15% of the increase in value was due to lower yields. We continue to create value through active property ownership and development of our properties.
After many years of hard work, our large detailed development plan for Södra Änggården was given the go-ahead by the City of Gothenburg Building Committee. We now hope the City Council will approve the detailed development plan in mid-April and I cannot foresee any direct obstacles to this.
After the end of the reporting period we launched the joint venture Sörreds Logistikpark together with Bockasjö, which represented a large step in project development of our logistics properties at Torslanda.
Good rent inflow in second quarter
Platzer has generally responsible tenants with strong balance sheets and enduring owners who comply with the leases they have signed with us even in extreme circumstances. We fully understand and respect the fact that some of our tenants will be finding things difficult right now and may be fighting for their very existence. Therefore, to the best of our ability we have looked at individual leases and tried to identify and support tenants whose business is fundamentally sound but who really need our help in the short term in order to survive. In these cases our support may make the difference between continuing to operate the business in our premises and not being able to continue operations because of Covid-19.
We have historically, and particularly in recent years, made large investments to make our properties and areas more attractive. Investments on which we then receive a return via the rent we receive through our leases. We use the return to pay a dividend and to invest more in properties and areas.
Tenants being able to meet their obligations under their leases is therefore an important fundamental pillar for all property companies. In normal circumstances this functions without major problems at the end of each quarter, but in the current climate of business closures, the situation is more uncertain.
An analysis of rent inflow in the second quarter shows that payments in the quarter were essentially in line with payments in a normal quarter. Our tenants and their owners are taking responsibility and paying their rent. There is a small time shift because some tenants have been offered the facility to pay monthly in advance, while others have been offered the facility to pay monthly retrospectively, and a handful of smaller tenants in the most exposed segments have been offered a reduction in rent for the month of April.
Covid-19 is difficult for us all and I am incredibly grateful that we have tenants with strong balance sheets who, like us and our suppliers, look further ahead than the next few months.
Sustainable business for all stakeholders
As CEO, in times of turmoil and crises many thoughts are running through my head. Who do we actually exist for? Who are our stakeholders? How do we operate a sustainable business when the share price is collapsing and shareholders are losing value, tenants are facing problems, the building contractors working on our our projects are unable to obtain materials deliveries, politicians are having to solve problems they are not trained to deal with and our staff are worried about their health and their jobs? Who should we be focusing on?
My answer and my challenge is "everyone". I and Platzer have to focus on all stakeholders simultaneously. For me, this is what operating a sustainable business involves. To take all stakeholders into consideration but not lose sight of what is right for Platzer in the long term. We need to find short-term solutions to problems, yet also maintain a long-term perspective. We will not keep all tenants happy. We will not be able to give all shareholders the information they request. But we guarantee that we will work hard every day and do so with the best interests of all shareholders in mind.
P-G Persson CEO
Measures taken by Platzer as a result of Covid-19
We are closely following developments relating to the new coronavirus and maintain a continuous dialogue with our stakeholders. Many of our tenants are in an extremely precarious position, having lost all or some of their revenue, but most are strong enough to be able to withstand short-term problems. Together with our tenants, we are developing long-term solutions. Our projects are continuing at an unchanged pace and our operations and maintenance services suppliers are not experiencing any delivery problems. In terms of financing, the bank system is functioning and our business is prepared for riding out this period of uncertainty. We take the situation very seriously and the company remains stable in these turbulent times.
These are the actions we have taken together with our stakeholders:
Suppliers/projects
• All projects, regardless of size, have been checked off with contractors. We have had no stoppages in production.
• We have carried out evaluations with all key suppliers of operations and maintenance services. There are no delivery problems in any of our areas or properties.
Lenders/finance
• We are in touch with our lenders on a daily basis in order to ensure financing.
• Our business is prepared for riding out this period of uncertainty. As at 31 March, our equity/assets ratio was 41% and our loan-to-value ratio 48%. Our long-term strategy is that bank loans should account for 80% of the debt portfolio. Currently, 84% comprises bank financing. The outstanding amount of bond market funding is around SEK 1.2 billion, of which SEK 0.3 billion will mature within one year. Platzer has unused credit facilities in place to manage bonds due to mature.
Tenants/properties
• It is an extreme situation for our tenants, but most of them are able to cope with short-term problems. Every tenant makes their own assessment of what measures they intend to take.
• We are conducting ongoing dialogues with tenants who have been negatively affected by the current circumstances and we are developing long-term solutions together.
• Platzer's portfolio of leases comprises a broad base of customers, a fairly small proportion of which is accounted for by the customer segment that may be adversely affected in the short term as a result of the action taken in response to the spread of Covid-19. The categories hotels and restaurants account for a total of 0.9% of total contracted rental income. Retail sales account for a further 1.5%.
• We have increased the number of rounds in properties where this is necessary because the tenants' staff are working from home. We are disinfecting surfaces such as lift buttons, door handles and door openers in public entrances to our properties.
Investors/shareholders
• We take a structured approach to market intelligence and analysis and conduct daily discussions with other property companies in order to be able to quickly make decisions if the situation changes.
• We published a press release on 20 March with the following message: " Platzer remains stable in turbulent times. The spread of Covid-19 is having a big impact on both the global economy and the Swedish economy. Platzer is receiving many questions about how the current situation is impacting the company. Platzer takes this situation very seriously and the company remains stable in these turbulent times."
Gothenburg
• We maintain a close dialogue with politicians, officials and other players such as Business Region Göteborg, the West Sweden Chamber of Commerce and the Port of Gothenburg in order to discuss the situation in the Gothenburg region and how to take action together.
Property market
• We check in with other players in the industry, the Swedish Property Federation and other industry networks in order to influence and keep each other informed. • Both the property market and rental market are currently reporting lower than normal levels of activity. Most players are waiting to see what the consequences of Covid-19 will be.
Staff/management
• We have set up an internal crisis group which is responsible for internal and external communication.
• We comply with the advice and instructions made available via the Public Health Agency of Sweden and the Government/Swedish Ministry of Foreign Affairs. We maintain an ongoing dialogue with our staff and contracted suppliers concerning developments and carry out constant risk assessments in order to minimise the spread of infection.
5 Theme Platzer Q1 2020
"We take this situation very seriously and the company remains stable in these turbulent times."
Record high operating surplus
Comparative amounts for income statement items refer to the corresponding period in the previous year.
Consolidated Income Statement, condensed
| SEK million | 2020 | 2019 | 2019 | 2019/2020 |
|---|---|---|---|---|
| Jan-Mar | Jan-Mar | Jan-Dec | Apr-Mar | |
| Rental income | 285 | 277 | 1,124 | 1,132 |
| Property costs | -69 | -73 | -287 | -283 |
| Operating surplus | 216 | 204 | 837 | 849 |
| Central administration | -15 | -14 | -52 | -53 |
| Share of profit of associates | 31 | 0 | 8 | 39 |
| Net financial income/expense 1) | -49 | -42 | -182 | -189 |
| Income from property management (incl. associates) | 183 | 148 | 611 | 646 |
| Change in value, investment properties | 449 | 419 | 1,522 | 1,552 |
| Change in value, financial instruments | -94 | -98 | -126 | -122 |
| Change in value, financing agreements | - | -91 | -94 | -3 |
| Profit before tax | 538 | 378 | 1,913 | 2,073 |
| Tax on profit for the period | -109 | -105 | -437 | -441 |
| Profit for the period 2) | 429 | 273 | 1,476 | 1,632 |
| Profit for the period attributable to: | ||||
| Parent company's shareholders | 426 | 268 | 1,461 | 1,619 |
| Non-controlling interests 3) | 3 | 5 | 15 | 13 |
| Earnings per share 4) | 3.56 | 2.24 | 12.19 | 13.51 |
1) In net financial income/expense includes ground lease costs totalling SEK 0.2 million for the period (0.3).
2) The Group had no other comprehensive income and therefore the consolidated profit for the period is the same as the comprehensive
income for the period. 3) Refers to non-controlling interests in jointly owned companies where Platzer holds the controlling interest.
4) There is no dilution effect because there are no potential shares.
Results
Income from property management in the first quarter amounted to SEK 183 million (148), corresponding to an increase of 23.6%. Income from property management per share amounted to SEK 1.28 (1.24). Profit after tax for the period amounted to SEK 429 million (273), up by 57%. The change was due to the fact that we were able to increase our rental income at the same time as our property costs declined. Share of profit of associates increased to SEK 31 million (0). In the corresponding period in the previous year we also reported a change in the value of our financing agreement of SEK -91 million, which does not apply to the first quarter of this year.
Rental income
Rental income in the period increased to SEK 285 million (277), up by 3%. The increase was primarily due to new lettings, renegotiated leases and index-linked increases in comparable property holdings. As at 31 March 2020, annualised rental income from existing leases was estimated at SEK 1,190 million (1,140), based on earning capacity, se page 11. The economic occupancy rate in the first quarter was 94% (94).
| Q1 2020 1 Jan - 31 Mar, SEK m |
Q1 2019 1 Jan - 31 Mar, SEK m |
Change, % |
|
|---|---|---|---|
| Comparable properties | 276 | 263 | 4.9 |
| Project properties | 9 | 8 | |
| Property transactions | - | 6 | |
| Rental income | 285 | 277 | 2.9 |
Property costs
Property costs in the first quarter amounted to SEK -69 million (-73). Property costs for comparable properties declined by 4,3%, primarily because the mild first quarter resulted in lower utility costs and lower costs for snow clearance and measures to prevent slips/falls. Property operating expenses and maintenance costs vary over the year. Costs in the first and fourth quarter are normally higher than in the second and third quarters, primarily due to higher utility costs and the costs of snow clearance and measures to prevent slips/falls.
| Q1 2020 1 Jan - 31 Mar, SEK m |
Q1 2019 1 Jan - 31 Mar, SEK m |
Change, % | |
|---|---|---|---|
| Comparable properties | 66 | 69 | -4.3 |
| Project properties | 3 | 3 | |
| Property transactions | - | 1 | |
| Property costs | 69 | 73 | -5.5 |
Operating surplus
The operating surplus in the first quarter increased by 5.8% to SEK 216 million (204). The increase was attributable to both an increase in income and a reduction in costs and adjusted for property disposals carried out in 2019, which reduced the operating surplus by SEK 5 million. The operating surplus for comparable properties increased by 7.8%. The surplus ratio was 76% (74). The yield for the properties was 4.2% (4.4).
Central administration and staff
Costs for the quarter amounted to SEK -15 million (-14). The increase was primarily due to an increase in staff-related costs. The number of employees at the end of the quarter was 82 (79).
Share of profit of associates
Platzer owns 20% of SFF Holding AB, which issues bonds and is owned in equal parts by Catena, Diös, Fabege, Platzer and Wihlborgs. We also own 50% of the limited partnership Biet together with Bygg-Göta, through which we jointly own the property Inom Vallgraven 49:1 (Merkurhuset).
Share of profit of associates for the period amounted to SEK 31 million (0), with the increase due to change in the value of properties.
Net financial income/expense
Net financial income/expense in the first quarter amounted to SEK -49 million (-42). The change was primarily due to a higher Stibor rate. Borrowings increased by SEK 172 million compared with the same period in the previous year. The increase was due to financing of ongoing projects and net disposals towards the end of the previous year.
As at 31 March 2020, the average interest rate, including the effects of derivative contracts, was 2.11% (1.84).
Changes in value
Changes in the value of properties in the first quarter amounted to SEK 449 million (419) and changes in the value of financial instruments totalled SEK -94 million (-98), while unrealised changes in the value of financing agreements amounted to SEK 0 million (-91).
Tax
Tax expense in the first quarter amounted to SEK -109 million (-105), of which SEK -28 million (-37) comprised current tax and SEK -81 million (-68) deferred tax. The change in current tax was primarily due to the fact that the figures for the corresponding period in the previous year were adversely affected by adjustments to taxable profits in previous years. Deferred tax was affected by unrealised changes in the value of properties and derivatives.
The corporation tax rate for 2020 is unchanged at 21.4%. The corporation tax rate will be cut with effect from 2021 to 20.6%. Deferred tax expected to be payable in 2021 or later will be calculated using the tax rate 20.6%. Property disposals which give rise to realised capital gains/losses are normally conducted as company divestments.
Developed segment reporting
With effect from the first quarter of 2020 we report our operations within the Industry/Logistics business area as a separate segment. As before, our operations within the Offices business area are reported as three geographical segments.
The total operating surplus is the same as the operating surplus reported in the income statement.
Segment reporting
| Offices | Industry/ Logistics |
Project properties |
Total | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Central Gothenburg |
South/West Gothenburg |
North/East Gothenburg |
||||||||||
| 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | |
| Rental income | 122 | 111 | 20 | 19 | 63 | 68 | 72 | 71 | 10 | 8 | 285 | 277 |
| Property costs | -27 | -24 | -4 | -4 | -16 | -18 | -18 | -22 | -3 | -3 | -69 | -73 |
| Operating surplus | 95 | 87 | 15 | 15 | 47 | 50 | 54 | 48 | 6 | 5 | 216 | 204 |
| Fair value, properties | 9,695 | 8,914 | 1,054 | 992 | 4,182 | 4,331 | 3,434 | 2,999 | 2,761 | 1,810 21,127 19,046 | ||
| Of which investments/ acquisitions/disposals/ changes in value in the |
||||||||||||
| period | 248 | 385 | 6 | 17 | 24 | 81 | 112 | 25 | 257 | 150 | 648 | 658 |
Positive net lettings for the 15th consecutive quarter
As at 31 March 2020, our property portfolio comprised 68 properties. The portfolio includes a jointly owned property accounted for as an associate. The fair value of the properties totalled SEK 21,127 million, excluding associates. The property portfolio includes 22 project properties. The total lettable area was 819,343 sq. m., of which offices accounted for 55%, industry/logistics 31%, retail 1% and other property 12%. The economic occupancy rate in the first quarter was 94% (94).
We report our property portfolio in three geographical office segments as well as industry/logistics and project properties:
- Offices Central Gothenburg (Centre, Gårda, Almedal, Masthugget and Gullbergsvass)
- Offices North/East Gothenburg (Backaplan, Gamlestaden, Lindholmen, Mölnlycke and Torslanda)
- Offices South/West Gothenburg (Högsbo and Mölndal)
- Industry/Logistics
- Project properties
We aim to be the leading player in all prioritised areas through profitable growth.
Net lettings and renegotiated leases
Total net lettings in investment and project properties amounted to SEK 0.5 million (4).
| Q1 2020 1 Jan - 31 Mar, SEK m |
Q1 2019 1 Jan - 31 Mar, SEK m |
|
|---|---|---|
| Investment properties, lettings | 10.5 | 18 |
| Investment properties, terminations | -13 | -17 |
| Project properties, lettings | 3 | 4 |
| Project properties, terminations | 0 | -1 |
| Total net lettings | 0.5 | 4 |
In the quarter, we renegotiated leases corresponding to a rental value of SEK 19 million (6). The average increase in rent was 17% (9).
Fastighetsbeståndet fördelat på kontor/industri/logistik/projekt, värde Property portfolio breakdown by value: offices/industry/logistics/projects
Net lettings, by quarter
Offices
In office space we are the leading player in Gullbergsvass, Gårda, Gamlestaden and Högsbo. The biggest tenants include the Swedish Social Insurance Agency, the City of Gothenburg, Academedia, Länsförsäkringar, the Swedish Migration Agency, Nordea, Plastal, Ramböll, Schenker and Zenuity.
In total, we have 661 leases for office space generating total rental income of SEK 850 million on an annual basis.
Net lettings in investment and project properties in the quarter amounted to SEK -1.5 million (9). Lettings in investment properties totalled SEK 8.5 million (17) while notices of termination amounted to SEK -13 million (-11). A large proportion of the lettings are in the areas Gårda and Gullbergsvass. Lettings in project properties amounted to SEK 3 million (4). In the project property Gårda 2:12 new lettings included a further lease with the Swedish Tax Agency and consequently, Gårda Vesta is now 87% pre-let.
Notices of termination in project properties amounted to SEK 0 million (-1).
Industry/Logistics
In Industry/Logistics we are the leading player in Arendal. Our largest tenants include DFDS, DHL, Plastal, SSAB and Sveafjord.
In total, we have 80 leases in Industry/Logistics generating total rental income of SEK 291 million on an annual basis.
Net lettings in investment and project properties in the quarter amounted to SEK 2 million (-5).
Lettings in investment properties totalled SEK 2 million (0) while notices of termination amounted to SEK 0 million (-5). The leases that were signed were in Arendal. Lettings and notices of termination in project properties in the quarter amounted to SEK 0 million (0).
After the end of the reporting period
Negotiating rent payments with tenants has meant that the proportion of monthly payments has increased from 8% to 14% for the second quarter. For an additional 2% of the rental volume in the second quarter, negotiations on rent reductions are underway with tenants, who are particularly affected by the measures to counter the spread of covid-19. Taking mentioned changes in account, the proportion of rent paid for the second quarter and April 2020 is in line with the corresponding time last year. Of expected rental income, 96% had been received eight working days after the due date, which is in line with previous quarters.
| Q1 2020 | Q1 2019 | |
|---|---|---|
| Number of commercial leases | 741 | 786 |
| Rental income from commercial leases on an annual basis, SEK m |
1,141 | 1,093 |
| 20 largest leases, % of rental value | 35 | 32 |
| Largest tenant, % of rental value | 11 | 11 |
| Largest lease, % of rental value | 3 | 3 |
| Average remaining term, months. | 38 | 41 |
Kontraktsstruktur Kontor och Industri/logistik Contract structure Offices and Industry/Logistics
Earning capacity 31 March 2020
| Number of |
Lettable | Fair value, | Rental value, |
Economic occupancy |
Rental income, |
Operating surplus, |
Surplus | |
|---|---|---|---|---|---|---|---|---|
| properties | area, sq. m. | SEK m | SEK m | rate, % | SEK m | SEK m | ratio, % | |
| Investment properties | ||||||||
| Central Business District (CBD) | 7 | 67,828 | 3,817 | 207 | 100 | 207 | 168 | 82 |
| City centre excl. CBD | 17 | 162,131 | 6,721 | 350 | 95 | 331 | 252 | 76 |
| Central Gothenburg | 24 | 229,959 | 10,537 | 558 | 96 | 538 | 420 | 78 |
| East Gothenburg | 5 | 120,878 | 2,499 | 184 | 90 | 166 | 122 | 74 |
| Norra Älvstranden/Backaplan | 4 | 38,018 | 1,334 | 84 | 99 | 83 | 64 | 77 |
| Hisingen, other | 2 | 25,854 | 349 | 28 | 61 | 17 | 10 | 58 |
| North/East Gothenburg | 11 | 184,750 | 4,182 | 296 | 90 | 266 | 195 | 73 |
| West Gothenburg | 4 | 21,918 | 284 | 25 | 84 | 21 | 13 | 63 |
| Mölndal | 4 | 28,994 | 770 | 56 | 100 | 56 | 46 | 83 |
| South/West Gothenburg | 8 | 50,912 | 1,054 | 81 | 95 | 77 | 60 | 77 |
| Industry/Logistics | 2 | 318,549 | 3,434 | 303 | 97 | 294 | 220 | 75 |
| Total investment properties | 45 | 784,170 | 19,207 | 1,238 | 95 | 1,175 | 895 | 76 |
| Project properties | 22 | 29,804 | 1,919 | 20 | 77 | 15 | 7 | - |
| Total Platzer | 67 | 813,974 | 21,127 | 1,258 | 95 | 1,190 | 902 | 76 |
The summary is based on the property portfolio as at 31 March 2020 and provides a snapshot of our earning capacity and is not a forecast. The summary does not provide an assessment of any changes in vacancy rates or leases. Neither does it include properties owned through associates.
The breakdown of office property is in line with the general geographical breakdown used by the property industry in Gothenburg with the exception of our property at Backaplan, which we account for as Norra Älvstranden. With effect from the first quarter of this year we report industry/logistics properties separately, irrespective of their location in Gothenburg. In the same way, we will continue to report our project properties separately. Project properties include all our properties in Södra Änggården, for example.
By rental value we mean rental income and the estimated market rent of vacant premises in their existing condition. The results-related columns include current leases in existing properties, including for occupancy over the next six months. Leases for later occupancy or for properties currently under construction are not included, however.
Rental income refers to contracted rental income including agreed supplements, such as payments for heating and property taxes, and excluding limited period discounts of approximately SEK 17 million. For project properties, the information relating to rental value, income and operating surplus refers to the current situation, before project start. In addition to the table, the company has concluded leases for ongoing and future new build projects worth SEK 146 million in rental income for gradual occupancy in 2021–2023, as well as leases for investment properties worth SEK 15 million in rental income for occupancy from 1 October 2020. The lease agreed with Internationella Engelska Skolan in Södra Änggården is not included in the rental income above because the conditions have not yet been met.
The operating surplus shows the properties' earning potential on an annual basis, defined as contracted rental income as at 1 April 2020. Deductions are made for estimated property costs including property administration for a normal year over a rolling 12-month period.
Strong financial position
Comparative amounts for balance sheet items refer to 31 December 2019.
Consolidated Balance Sheet, condensed
| SEK million | 31 Mar 2020 | 31 Mar 2019 | 31 Dec 2019 |
|---|---|---|---|
| Assets | |||
| Investment properties 1) | 21,127 | 19,046 | 20,479 |
| Right of use assets, leasehold | 30 | 30 | 30 |
| Other non-current assets | 13 | 14 | 12 |
| Non-current financial assets | 223 | 144 | 186 |
| Current assets | 151 | 112 | 131 |
| Cash and cash equivalents | 263 | 406 | 268 |
| Total assets | 21,807 | 19,752 | 21,106 |
| Equity and liabilities | |||
| Equity | 8,985 | 7,561 | 8,556 |
| Deferred tax liability | 1,521 | 1,209 | 1,440 |
| Non-current interest-bearing liabilities 2) | 6,520 | 7,772 | 7,094 |
| Lease liability | 30 | 30 | 30 |
| Other non-current liabilities | 662 | 540 | 589 |
| Current interest-bearing liabilities | 3,608 | 2,184 | 2,939 |
| Other current liabilities | 481 | 456 | 458 |
| Total equity and liabilities | 21,807 | 19,752 | 21,106 |
1) Of which SEK 641 million (470) was attributable to assets held for sale.
2) Of which SEK 188 million (188) comprise liabilities attributable to assets held for sale.
Platzer has a strong cash flow and good financial position. We are continuing our projects according to plan and have secure financing and a high occupancy rate.
Value of properties and property valuation
Properties were recognised at a fair value of SEK 21,127 million (20,479), which was based on an internal valuation as at the balance sheet date. The properties are valued internally at the end of each quarter, using a ten-year cash flow model for all properties. At each year-end, we also carry out an external valuation of a few sample properties that form a cross section of the property portfolio. The external valuation normally comprises around 30% of the property portfolio and is carried out as quality assurance of the internal valuation. Historically, the difference between our internal valuation and the external valuation has been small. The investment properties are valued within level 3 in the IFRS 13 fair value hierarchy.
The internal property valuation in the quarter showed a change in the value of investment properties of SEK 449 million (419). Around 70% of the change in value related to urban, property and project development. Approximately 15% was due to rising market rents and newly signed and renegotiated leases. The remaining 15% of the change in value was due to adjusted required yields in the portfolio.
Because each property is valued individually, the portfolio premium that can occur in the property market has not been taken into account. The average yield requirement in the valuation at the balance sheet date was 4.9%, unchanged compared with 31 December 2019, which was due to the fact that market yields were almost unchanged.
We have previously concluded agreements on the sale of ten future properties in Södra Änggården. In total, this involves 14 project properties in the Högsbo area. The disposals are conditional on the detailed development plan becoming legally binding. Currently, this is expected to take place in the second quarter of 2020. The transaction will be implemented in three stages, with the first completion expected in 2020. The received down payment of a total of SEK 103 million will be recognised as a liability until the terms and conditions of sale have been fulfilled. Total income from the disposals in this project are estimated at around SEK 1.8 billion, SEK 1.6 billion of which is attributable to agreements signed so far. The properties are being sold as ready for construction, which means that Platzer is responsible for costs arising from demolition, decontamination and development of roads and parks. The disposals have not yet been recognised through profit or loss, and instead valuation of building rights is expected to take place when the detailed development plan has become legally binding (in accordance
with our valuation principles). At that point the disposals will be recognised through profit or loss, primarily as changes in the value of properties, and they are expected to boost equity by SEK 6-7 per share.
Transactions in the quarter
No property acquisitions or sales were carried out in the first quarter. Investments in existing properties in the quarter amounted to SEK 199 million (239), with the largest investments comprising the new build projects Gårda Vesta (Gårda 2:12) and Kineum (Gårda 16:17).
Equity
The Group's equity amounted to SEK 8,985 million (8,556) as at 31 March 2020. The equity/assets ratio on the same date was 41% (41), well above the target of 30%. Equity per share as at 31 March 2020 stood at SEK 74.39 (70.84), while the long-term net asset value (EPRA NAV) was SEK 89.02 (84.00) per share.
| 2020 Jan-Mar |
2019 | 2019 Jan-Dec |
||
|---|---|---|---|---|
| Jan-Mar | ||||
| Value of properties, opening balance | 20,479 | 18,388 | 18,388 | |
| Investments in existing properties | 199 | 239 | 937 | |
| Property acquisitions | - | - | - | |
| Property sales | - | - | -368 | |
| Changes in value | 449 | 419 | 1,522 | |
| Value of properties, closing balance | 21,127 | 19,046 | 20,479 |
Consolidated Statement of Changes in Equity, condensed
| 2020 | 2019 | 2019 | |
|---|---|---|---|
| SEK million | Jan-Mar | Jan-Mar | Jan-Dec |
| Equity attributable to the Parent Company's shareholders | |||
| At the beginning of the period | 8,487 | 7,230 | 7,230 |
| Comprehensive income for the period | 426 | 268 | 1,461 |
| Dividend | - | - | -204 |
| At the end of the period | 8,913 | 7,498 | 8,487 |
| Equity attributable to non-controlling interests | |||
| At the beginning of the period | 69 | 58 | 58 |
| Withdrawals | - | - | -4 |
| Comprehensive income for the period | 3 | 5 | 15 |
| At the end of the period | 72 | 63 | 69 |
| Total equity | 8,985 | 7,561 | 8,556 |
Debt financing and changes in the value of derivatives
As at 31 March, interest-bearing liabilities amounted to SEK 10,128 million (10,033). This corresponds to a loan-to-value ratio of 48% (49), which is under the financial target of maximum 60%. Current interest-bearing liabilities refer to loans that will be renegotiated within the next twelve months.
Debt financing primarily comprises bank loans secured by mortgages on property. Platzer is also borrowing SEK 1,190 million (1,190) through secured green bond issues via Svensk Fastighetsfinansiering (SFF). A total of 53% of our outstanding debt comprises green bonds and loans. Platzer also has a commercial paper programme with a framework amount of SEK 2 billion; outstanding commercial paper as at 31 March totalled SEK 450 million (550).
The average fixed interest term, including the effect of derivatives contracts, was 3.8 years (4.0) as at 31 March, excluding contracts with forward start dates of 3.6 years (3.8). The average loan term was 1.9 years (2.4).
In order to achieve the desired interest rate structure, we use interest rate swaps. These are recognised at fair value in the balance sheet, while gains/losses are recognised through profit or loss without applying hedge accounting. We have
| Interest maturity | Loan maturity | |||
|---|---|---|---|---|
| Year | Loan amount, SEK million |
Average interest rate, % |
Credit agree ments |
Used |
| 2020 | 4,967 | 1.83 | 3,714 | 3,587 |
| 2021 | 291 | 1.33 | 4,048 | 3,348 |
| 2022 | - | - | 1,222 | 1,222 |
| 2023 | 300 | 2.22 | 1,338 | 1,338 |
| 2024 | 300 | 2.18 | - | - |
| 2025 | 520 | 2.25 | - | - |
| 2026 | 850 | 2.37 | - | - |
| 2027 | 1,270 | 2.54 | - | - |
| 2028 | 1,380 | 2.63 | 633 | 633 |
Pledged assets as at 31 March 2020 amounted to SEK 8,187 million (8,187). Contingent liabilities as at 31 March 2020 amounted to SEK 8 million (8).
2029 250 2.16 - - Total 10,128 2.11 10,955 10,128 concluded derivatives contracts totalling SEK 5,620 million (5,620), of which SEK 250 million are swaps with forward start dates.
The market value of the derivatives portfolio as at 31 March 2020 was SEK -246 million (-152), which corresponded to a change in value of SEK -94 million compared with the same period in the previous year. Only realised changes in value affect cash flow. During the remaining term of the derivatives, the undervalue will be resolved and will reduce financial expense in the income statement by an equivalent amount.
The financial assets and liabilities that are measured at fair value in the Group comprise the derivative instruments described above. These are included in Level 2 in the IFRS 13 fair value hierarchy. The fair value of interest-bearing non-current liabilities is equivalent to their carrying amount because the discounting effect is not significant when the interest rate on the loans is variable and in line with market rates.
Räntebärande skulder Interest-bearing liabilities
Cash flow and Cash Slow Statement
Consolidated
Cash Flow Statement, condensed
| 2020 | 2019 | 2019 | 2019/2020 | |
|---|---|---|---|---|
| SEK million | Jan-Mar | Jan-Mar | Jan-Dec | Apr-Mar |
| Operating activities | ||||
| Operating surplus | 216 | 204 | 837 | 849 |
| Central administration | -14 | -13 | -49 | -50 |
| Net financial income/expense | -48 | -43 | -182 | -187 |
| Income tax | -40 | -85 | -88 | -43 |
| Cash flow from operating activities before change in | ||||
| working capital | 114 | 63 | 518 | 569 |
| Change in current receivables | -20 | 50 | -16 | -86 |
| Change in current receivables | 13 | 38 | 41 | 16 |
| Cash flow from operating activities | 107 | 151 | 543 | 499 |
| Investing activities | ||||
| Investments in existing investment properties | -199 | -239 | -937 | -897 |
| Acquisitions of investment properties | 0 | 0 | 0 | 0 |
| Disposals of investment properties | 0 | 0 | 328 | 328 |
| Acquisition/disposal of shares in associates | 0 | 0 | 0 | 0 |
| Other investments | -2 | 0 | 0 | -2 |
| Cash flow from investing activities | -201 | -239 | -609 | -571 |
| Financing activities | ||||
| Changes in non-current receivables | 95 | 0 | -34 | 61 |
| Change in interest-bearing liabilities | -7 | 139 | 216 | 70 |
| Changes in non-current liabilities | 0 | 0 | 1 | 1 |
| Dividend | 0 | 0 | -204 | -204 |
| Cash flow from financing activities | 88 | 139 | -21 | -72 |
| Cash flow for the period | -6 | 51 | -87 | -144 |
| Cash and cash equivalents at the beginning of the period Cash and cash equivalents at the end of the period |
268 262 |
355 406 |
355 268 |
406 262 |
Unused overdraft facilities amounted to SEK 100 million (100) and unused credit facilities amounted to SEK 2,157 million (1,661), of which SEK 1,330 million (1,330) comprised construction loans.
Cash flow from operating activities in the quarter amounted to SEK 107 million (151). The increase in operating surplus was due to increased income relating to new leases, renegotiated leases and index-linked increases, as well as reduced utility costs and lower costs for snow clearance and measures to prevent slips/falls. Central administration costs increased because of an increase in staff-related costs, while net financial expense increased partly as a result of a higher Stibor rate and partly due to increased borrowings. The decrease in income tax paid was due to the fact that we chose to adjust preliminary tax payments in the period. However, we elected not to make supplementary payments of tax in companies where we have paid too little preliminary tax, which is something we have done in previous years. This change resulted in an
increased tax liability, thereby increasing current liabilities. The increase in current receivables was due to the fact that we had a higher proportion of prepaid expenses as at 31 March 2020 than at 31 December 2019.
Investments in existing properties amounted to SEK 199 million (239). No property acquisitions or sales were carried out in the period.
Cash flow for the period amounted to SEK -6 million (51). As at 31 March 2020, cash and cash equivalents totalled SEK 262 million (406). In addition to cash and cash equivalents, as at 31 March 2020 the company had unused credit facilities and overdraft facilities of SEK 2,257 million, of which SEK 1,330 million comprised construction loans.
Development projects
We develop individual properties and entire districts of mixed-use development. Our current major projects comprise a total of 60,000 sq. m. of lettable area. Current major projects relate to projects where construction is underway. We also have a number of potential development projects in different stages with an estimated gross floor area (GFA) of around 640,000 sq. m.
So far, the Covid-19 outbreak has not caused us to change direction in our current major projects or potential development projects. At the same time, delays are not uncommon in large development projects involving many stages from idea to finished building. Such delays may also occur as a result of the Covid-19 outbreak, which directly and indirectly may affect our building contractors' ability to carry out contracted works according to the agreed schedule. We are therefore working closely together with the building contractors. Currently, we estimate that the outbreak will only result in marginal delays.
Property development
Gullbergsvass
Development of the property Gullbergsvass 5:10, where our head office is located, is now in the final stages. The project comprises redevelopment of the entire building and upward extension of 1,600 sq. m. of new office space. We are creating efficient office space which together with the extension will pave the way for services at ground floor level. The property development project will create several new restaurants and commercial premises in Gullbergsvass, resulting in a more vibrant and attractive area. The office space is fully pre-let and the project is expected to be finished in the third quarter of 2020.
Project development
Gårda
The future tallest office block in Gothenburg is now visible from many parts of the city. Construction of Gårda Vesta (Gårda 2:12) is continuing and the project will have a total area of 27,000 sq. m across two connecting towers. Today the building is 87% pre-let to the Swedish Tax Agency, Länsförsäkringar, Aros Kapital and Länsförsäkringar Mäklarservice. Gårda Vesta will complete the existing cluster of public sector organisations in the northernmost part of north Gårda, where existing major tenants include the Swedish Migration Agency, the Swedish Social Insurance Agency and GR.
At Kineum (Gårda 16:17), our other high rise project in Gårda, work is proceeding according to plan. Among other things, we have started casting the slab for the ground floor construction, begun work on the frame for the highrise building and demolished an old car park. Kineum will house hotel operations, offices and other businesses. During construction, we share ownership with NCC on a 50/50 basis. NCC will also move its office in Gothenburg to the new building. The largest tenant is ESS Group, which will develop a new hotel with around 230 rooms and a total area of 15,000 sq. m. in the property.
The hotel is in line with our ambition to contribute to the development of the area and make southern Gårda a destination and vibrant district at all hours of the day and night. This ambition has not changed as a result of the fact that the hotel industry and related operators are under severe pressure due to Covid-19, because both we and NCC have made the judgement that the time remaining until completion of the project in 2022 means the situation will have had time to improve.
City centre
At Skeppsbron we are joint owners with Bygg-Göta of the Merkurhuset (Inom Vallgraven 49:1) property and associated planning permission for a lettable area of 5,400 sq.m of office space. In June 2019, we concluded a lease with the advertising agency Forsman & Bodenfors for 3,350 sq. m., and construction is now underway. We also have plans for a restaurant on the ground floor to draw even more people to the area.
Gullbergsvass
The area between Gothenburg central railway station and the river is undergoing rapid change. A lower design for the Hisingsbro bridge and an underpass for the E45 will create space for development. The inner city is expanding towards the river. There are opportunities here to create an attractive area close to the water, within walking distance of the central railway station and featuring mixed-use development such as housing, offices and services. We have an option to buy two building rights, comprising a total GFA of 43,000 sq. m. for the site where the existing Götaälvbron bridge is located. Construction could potentially start in 2023/24.
Torslanda/Arendal
Torslanda and Arendal are the best logistics locations in Sweden. Under the detailed development plan for the area we have building rights for logistics and industry construction of 200,000 sq. m GFA. In Arendal we own an undeveloped site at Arendals kulle where we were granted permission to build a facility of around 14,000 sq. m. in December. Work is underway on letting this to a suitable tenant. In Torslanda we have building rights for 190,000 sq. m. GFA at the properties Sörred 2:3, Sörred 3:1, Sörred 7:21 and Sörred 8:12, of which around half will comprise our new joint venture with Bockasjö, Sörreds Logistikpark.
Urban development
Gamlestaden
Gamlestaden is one of Gothenburg's most interesting districts and is also among the districts best served by public transport. In the next ten years, the district will be developed to take on more of an urban character, featuring a
Platzer Q1 2020
Development work on three levels
Property Development
Property development involves the refurbishment or development of an existing building. The purpose may be to adapt the property for an existing tenant or to attract new tenants.
Example: Gullbergsvass 5:10 is being transformed from a building with traditional office space to a flexible workplace for tenants with different needs and requirements.
Project Development
Project development refers to new production from the ground up, with no existing building, and we manage the process from idea through to finished building.
Example: Gårda Vesta is being developed into Gothenburg's first Well Building-certified office block, featuring flexible offices with a focus on the wellbeing of workers.
Urban Development
Urban development means that we take long-term responsibility for an area, often in collaboration with others. We contribute to attractive urban environments and increased property values. Sometimes we develop residential building rights which are sold to cooperation partners.
Example: Södra Änggården is being developed from an area of office and industrial space to a modern, mixed-use urban district.
mixture of housing and businesses.
We own three large properties and projects in Gamlestaden. In autumn 2018 we finished work on the property Gamlestads torg (Gamlestaden 740:132). The detailed development plan for the adjacent property Gamlestadens Fabriker (Olskroken 18:7) has been out for consultation and responses are now being processed. In December, the Land and Environment Court issued the water ruling that was a prerequisite for the detailed development plan. The detailed development plan is expected to become legally binding in 2020. We have previously concluded an agreement on the sale of future building rights housing to JM, which is participating in the development of the area.
For the neighbouring property (Bagaregården 17:26), we have received a positive planning decision concerning densification of a total of 60,000 sq. m.
Södra Änggården
We are developing northern Högsbo as Södra Änggården – a vibrant urban district with housing, schools and commercial premises. A total of 2,000 new homes are planned, 600 of which form part of BoStad 2021, which among other things involves a fast-track planning process.
After a new round of consultations, the Building Com-
mittee approved the detailed development plan in early February 2020. The next step is for the City Council to make a decision and the plan is expected to be submitted for approval in April.
We have previously signed a lease with Internationella Engelska Skolan (IES) for a new school in the area. The lease is for 20 years and comprises approx. 9,000 sq. m. The transaction is conditional on us finding a long-term owner for the property and the detailed development plan becoming legally binding. Preliminary occupancy is scheduled for August 2022.
Almedals Fabriker
Almedals Fabriker (Skår 57:14) is a former industrial district located alongside the Mölndalsån river, just south of Liseberg. Today, the area contains a number of smaller businesses, many of which relate to the creative arts. Platzer owns Almedals Fabriker with potential building rights for around 25,000 sq. m. of office space. The City of Gothenburg has chosen Almedals Fabriker as one of five pilot projects in which developers are more involved in the process of creating a detailed development plan. The aim is to reduce the total time spent on the project. The detailed development plan process, which is being jointly managed by Platzer, Svenska Hus, Wallenstam and the City of Gothenburg, was launched in the third quarter of 2019.
Major projects underway
| Property | Type1) | Redeveloped area lettable area, sq. m. |
New area, lettable area, sq. m. |
Total inv. incl. land, SEK million2) |
Of which outstanding inv., SEK million |
Fair value, SEK m |
Rental value, SEK million3) |
Occupancy rate, % |
Finished |
|---|---|---|---|---|---|---|---|---|---|
| Gullbergsvass 5:10 | Property Dev. |
11,900 | 1,600 | 558 | 45 | 842 | 45 | 99 | Q3 2020 |
| Gårda 2:12, Gårda Vesta Project Dev. | 27,000 | 1,120 | 360 | 1,032 | 83 | 87 | Q4 2021 | ||
| Gårda 16:17, Kineum | Project Dev./ Property Dev. |
16,000 | 26,000 | 1,817 | 847 | 1,288 | 136 | 76* | Q3 2022 |
| Total | 27,900 | 54,600 | 3,495 | 1,243 | 3,162 | 264 |
| Jointly owned properties accounted for as associates | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Property | Type1) | Redevel oped area, lettable area, sq. m. |
New area, lettable area, sq. m. |
Total inv. incl. land, SEK million2) |
Of which outstanding inv., SEK million |
Fair value, SEK m |
Rental value, SEK million3) |
Occupancy rate, % |
Finished |
| Inom Vallgraven 49:1, Merkurhuset*** |
Project Dev. |
5,400 | 252 | 174 | 103 | 18 | 62 | Q4 2021 |
Potential development projects
| Property | Type1) | Type of property | New area GFA sq. m. |
Project phase | Possible construction start4) |
|---|---|---|---|---|---|
| Sörred 7:21 | Project Dev. | logistics/industry | 30,000 | detailed development plan available |
2020 |
| Sörred 2:3 | Project Dev. | logistics/industry | 14,600 | detailed development plan available |
2020 |
| Syrhåla 3:1 | Project Dev. | logistics/industry | 60,000 | detailed development plan available |
2020 |
| Sörred 8:12 | Project Dev. | logistics/industry | 90,000 | detailed development plan available |
2020 |
| Arendal 764:720, Arendals kulle | Project Dev. | logistics/industry | 14,000 | detailed development plan available |
2020 |
| Olskroken 18:7, Gamlestadens Fabriker | Urban Dev./ Project Dev./ Property Dev. |
mixed use development |
100,000 | detailed development plan in progress |
2020 |
| Södra Änggården (multiple properties and multiple development phases) |
Urban Dev./ Project Dev. |
mixed use development |
approx. 200,000 | detailed development plan in progress |
2020 |
| Krokslätt 34:13 | Property Dev./ Project Dev. |
offices | 10-15,000 | planning decision taken | 2021 |
| Skår 57:14, Almedals Fabriker | Property Dev./ Project Dev. |
offices | 25,000 | detailed development plan in progress |
2022 |
| Bagaregården 17:26 | Urban Dev./ Project Dev./ Property Dev. |
mixed use development |
60,000 | planning decision taken | 2022 |
| Gullbergsvass ** | Project Dev. | offices | 43,000 | detailed development plan available |
2023/2024 |
* The occupancy rate also includes existing building.
**Platzer does not currently own the land but has an option to acquire the land together with building rights at the market rate
***Refers only to new construction in conjunction with existing investment property.
The summary includes potential projects that have been identified for properties that the company owns or has agreed to acquire.
Total 646,000–652,000
1) See explanation on p. 17.
2) The total investment including land value includes value on acquisition and investment in property development.
3) Refers to estimated rental value when the building is finished and fully let.
4) Possible construction start means when it is estimated the project could start, provided that planning work proceeds as expected and pre-letting has reached a satisfactory level.
Key Performance Indicators and Quarterly Summary
Key performance indicators, Group
| 2020 | 2019 | 2019 | 2019/2020 | |
|---|---|---|---|---|
| Jan-Mar | Jan-Mar | Jan-Dec | Apr-Mar | |
| Financial | ||||
| Debt/equity ratio (multiple) | 1.1 | 1.3 | 1.2 | 1.1 |
| Interest coverage ratio (multiple) | 4.1 | 4.4 | 4.3 | 4.2 |
| Loan-to-value ratio, % | 48 | 52 | 49 | 49 |
| Equity ratio, % | 41 | 38 | 41 | 41 |
| Return on equity, % | 9.8 | 8.7 | 19.0 | 19.7 |
| Property-related | ||||
| Investment yield, % | 4.2 | 4.4 | 4.3 | 4.2 |
| Surplus ratio, % | 76 | 74 | 74 | 75 |
| Economic occupancy rate, % | 94 | 94 | 94 | 94 |
| Rental value, SEK/sq. m. | 1,516 | 1,462 | 1,488 | 1,510 |
| Lettable area, sq. m. (thousand) | 814 | 827 | 819 | 814 |
For definitions and calculations of Key Performance Indicators, please see pages 30-31.
Quarterly Summary
| 2020 | 2019 | 2018 | ||||||
|---|---|---|---|---|---|---|---|---|
| SEK million | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 |
| Rental income | 285 | 282 | 289 | 276 | 277 | 276 | 255 | 254 |
| Property costs | -69 | -70 | -78 | -66 | -73 | -70 | -59 | -62 |
| Operating surplus | 216 | 212 | 211 | 210 | 204 | 206 | 196 | 192 |
| Central administration | -15 | -15 | -9 | -14 | -14 | -15 | -8 | -13 |
| Share of profit of associates | 31 | 1 | 6 | 1 | 0 | 5 | 1 | 1 |
| Net financial income/expense | -49 | -45 | -47 | -48 | -42 | -51 | -52 | -52 |
| Income from property management (incl. associates) |
183 | 153 | 161 | 149 | 148 | 144 | 137 | 128 |
| Change in value, investment properties | 449 | 406 | 369 | 328 | 419 | 588 | 219 | 155 |
| Change in value, financial instruments | -94 | 172 | -89 | -111 | -98 | -30 | 46 | -10 |
| Unrealised changes in value, financing agree ments |
- | - | -1 | -2 | -91 | -19 | - | - |
| Profit before tax | 538 | 731 | 440 | 364 | 378 | 683 | 402 | 273 |
| Tax on profit for the period | -109 | -165 | -90 | -77 | -105 | -135 | -87 | 3 |
| Profit for the period | 429 | 566 | 350 | 287 | 273 | 548 | 315 | 276 |
| Investment properties | 21,127 | 20,479 | 20,116 | 19,542 | 19,046 | 18,388 | 17,570 | 16,118 |
| Investment yield, % | 4.2 | 4.2 | 4.3 | 4.4 | 4.4 | 4.8 | 4.7 | 4.8 |
| Surplus ratio, % | 76 | 75 | 73 | 76 | 74 | 75 | 77 | 76 |
| Economic occupancy rate, % | 94 | 95 | 94 | 94 | 94 | 95 | 94 | 95 |
| Return on equity, % | 9.8 | 11.5 | 9.2 | 8.3 | 8.7 | 12.9 | 9.8 | 8.1 |
| Equity per share. SEK | 74.39 | 70.84 | 66.14 | 63.26 | 62.65 | 60.34 | 55.81 | 53.21 |
| Long-term net asset value (EPRA NAV) per share, SEK |
89.02 | 84.00 | 80.02 | 75.73 | 73.58 | 69.54 | 65.71 | 62.85 |
| Share price, SEK | 70.70 | 110.00 | 96.20 | 86.00 | 76.50 | 59.50 | 62.30 | 58.50 |
| Earnings after tax per share, SEK | 3.56 | 4.69 | 2.87 | 2.37 | 2.27 | 4.51 | 2.63 | 2.30 |
| Cash flow from operating activities per share, SEK |
0.89 | 1.94 | 1.14 | 0.19 | 1.26 | 1.47 | 1.85 | 0.61 |
Parent Company
The Parent Company does not own any properties of its own, but instead manages certain groupwide functions relating to management, strategy and financing. Parent Company revenue consists entirely of invoicing for services to Group companies.
Parent Company Income Statement, condensed
| SEK million | 2020 Jan-Mar |
2019 Jan-Mar |
2019 Jan-Dec |
|---|---|---|---|
| Net sales | 4 | 3 | 14 |
| Operating expenses | -3 | - 3 | -13 |
| Net financial income/expense | -19 | - 10 | 353 |
| Change in value, financial instruments | -94 | - 98 | -126 |
| Profit before tax and appropriations | -113 | - 108 | 228 |
| Appropriations | - | - | 10 |
| Tax | 7 | 23 | 24 |
| Profit/loss for the period 1) | -106 | - 85 | 262 |
1) The Parent Company has no other comprehensive income and total comprehensive income is therefore the same as profit for the period.
Parent Company Balance Sheet, condensed
| SEK million | 31 Mar 2020 | 31 Mar 2019 | 31 Dec 2019 |
|---|---|---|---|
| Assets | |||
| Participations in Group companies | 1,886 | 1,886 | 1,886 |
| Other non-current financial assets (primarily financing of Group companies) | 2,212 | 2,099 | 2,205 |
| Receivables from Group companies | 1,019 | 925 | 1,120 |
| Other current assets | 4 | 48 | 92 |
| Cash and cash equivalents | 1 | 112 | 7 |
| Total assets | 5,202 | 5,070 | 5,310 |
| Equity and liabilities | |||
| Equity | 2,610 | 2,580 | 2,723 |
| Untaxed reserves | 41 | 50 | 41 |
| Non-current liabilities | 2,429 | 866 | 1,985 |
| Current liabilities | 122 | 1,574 | 561 |
| Total equity and liabilities | 5,202 | 5,070 | 5,310 |
Other comments
Employees and organisation
As at 31 March, the number of employees stood at 82 (79 at 31 December 2019).
Since 15 October 2019 our operations are divided into business areas based on segments:
• Business area Offices – will build on its current position as the market leader to continue to create profitable growth in office space.
• Business area Industry/Logistics – objective is to make Platzer the leading commercial property company in Gothenburg in industry and logistics.
Each business area has overall responsibility for the property business within their respective business area. This consists of managing the land, buildings and tenants in the buildings, as well as renegotiation, letting and development of every property and adjacent area. The employees within each business area are responsible for daily management, operation and maintenance, letting and project management of property-led projects and tenants-specific adaptations.
We also have a new Group management which comprises the managers responsible for the following functions: operations development, business development, finance/accounting, communication/marketing, business area Offices, business area Industry/Logistics and HR.
Significant risks and uncertainty factors
The property business, as all businesses, is always exposed to risks. We manage and reduce risks through good internal control and external control by auditors, well-functioning administrative systems and policies, as well as tried and tested procedures for property valuations. The main risks and uncertainty factors that affect Platzer have not changed over the period and they are described in detail in the Annual Report for 2019 on pages 74-77 and 90-92.
Related party transactions
The company's ongoing related party transactions are described in the Annual Report for 2019, page 105. There are no significant transactions with related parties apart from these agreements.
Accounting principles
Platzer prepares its consolidated financial statements in accordance with IFRS (International Financial Reporting Standards) as adopted by the EU. The same accounting policies and measurement principles have been applied as in the most recent Annual Report. The Interim Report has been prepared in accordance with IAS 34, Interim Financial Reporting.
The Parent Company applies the Swedish Annual Accounts Act and the Swedish Financial Reporting Board's Recommendation RFR2 Accounting for Legal Entities.
With effect from 1 January 2020, the Group applies the amendments made to IFRS 3 Business Combinations. The amendments to IFRS 3 primarily relate to the amendment of the definition of a business combination and whether an acquisition should be classified as an acquisition of a business or a group of assets. In practice this means that if substantially all the consideration paid for the shares in a business combination can be attributable to the market value of the acquired properties, the acquisition shall be considered to be an acquisition of assets. In simplified terms this means that the whole amount of any overvalue shall be allocated to the properties and not to goodwill. This amendment to IFRS 3 Business Combinations is expected to have a limited impact on the Group's financial statements since the majority of acquisitions are already accounted for as acquisitions of assets.
Other new and amended standards from IFRS with future application dates are not expected to have a significant effect on the Group's financial statements.
Significant events after the end of the reporting period
In April 2020 Platzer entered into an agreement to set up a 50/50 Joint Venture (JV) with Bockasjö. The joint venture, named Sörreds Logistikpark, will initially acquire the property Sörred 8:12 from Platzer at the underlying property value of SEK 250 million. The property consists of an area of land of 254,000 sq. m. and includes building rights of at least 90,000 sq. m. GFA, which will be split into a number of new properties where industrial and logistics buildings will be built. In the joint venture Bockasjö will be responsible for business development and Platzer will subsequently own 100% of the developed properties when finished and manage these on market terms.
Gothenburg, 16 April 2020 Platzer Fastigheter Holding AB (publ)
P-G Persson, CEO
This Interim Report has not been reviewed by the company's auditors.
Market Commentary
In recent weeks the global economy has been wholly characterised by the new coronavirus, which was classed as a pandemic on 12 March. In many countries, production has slumped sharply and in some countries output has been more or less at a standstill since mid-March. Customers all over the world have experienced late or failed deliveries. However, China, whose exports fell rapidly in the first quarter, has already taken steps to start up production again, approximately three months after the first reported case of the disease.
At the beginning of this year, the Swedish National Institute of Economic Research predicted a continued slowdown of the Swedish economy and GDP growth of around 1.00%. It also assumed unemployment would rise slightly in 2020, peaking at around 7.4% in 2021. Brexit and a trade war between China and the USA in particular were singled out as major uncertainty factors.
Revised assessments after the corona crisis
Because these reports from the Swedish National Institute of Economic Research were made before the coronavirus outbreak, the figures will be revised and we can expect a decrease in GDP and higher unemployment in future. Exactly how large the changes will be remains to be seen. This will depend on how quickly the countries of the world are able to control the spread of the virus, how they manage the economic crisis in the short term during the epidemic and how they support companies and society in the slightly longer term in order to recover from a probable recession. In this context we should add that the support packages that the governments in Sweden and the other Nordic countries have launched in order to provide financial relief to businesses and employers are large in proportion to country size.
The corona crisis is different in many important ways from the financial crisis in 2008, when the capital markets more or less froze access to liquid assets. Today, liquidity is significantly better. The government has also done a lot to further boost liquidity through an SEK 500 billion cash injection from the Riksbank and by easing banks' capital buffer requirements as a stimulus for lending to business.
We believe sound property companies will continue to have high liquidity, albeit at a higher cost than before the corona crisis. The assessment is that the Riksbank will leave the key interest rate unchanged at the current low level, or alternatively reduce it further.
Impact also felt in Gothenburg
In Gothenburg, as in the rest of the world, companies linked to the visitor economy were the first to be hit by the downturn in growth. After that, the vehicle industry decided to pause production in the region and the next step was that sub-suppliers and consulting companies linked to this industry were affected. Volvo Cars, on the other hand, has resumed some production in China.
From a long-term perspective the Gothenburg region is expected to continue to show strong development, primarily thanks to major public investments in infrastructure and continued urbanisation. In turn, this contributes to a good rental and property market. But it will take a while to recover from the prevailing market conditions, exactly how long it is not possible to say at present.
Office market adopts wait-and-see approach
The vacancy rate for offices in Gothenburg remains at low levels even though it has started to inch up slowly in the last two years. In the fourth quarter of the previous year, the vacancy rate rose from 5.3% to 5.8%. The increase occurred in the central parts of Gothenburg and the vacancy rate fell slightly in more peripheral areas such as Hisingen and Mölndal.
Rent levels in Gothenburg have remained more or less unchanged since the beginning of 2018. Central Gothenburg and Norra Älvstranden reported a small increase in rents. Areas with large volumes of new production of modern office space are also expected to see a more positive development in rents in the coming year. One such area is East Gothenburg, which includes Gamlestaden, where new production has caused rents to double since 2017.
In the short term, the office market is in a wait-and-see situation. Demand is entirely dependent on industry sector and customer, with some tenants postponing relocation and expansion plans and others choosing to carry on working as before. For property owners it is a case of being ready to meet the specific requirements of every new and existing customer and offering an appropriate solution in order to be able to generate business in the current market situation.
Rental market, office space
| Prime Rent (SEK/sq. m.) | Q4 2019 | Q1 2019 | Q4 2018 |
|---|---|---|---|
| Central Business District (CBD) |
3,700 | 3,500 | 3,400 |
| City centre excl. CBD | 2,800 | 2,600 | 2,600 |
| Norra Älvstranden | 2,800 | 2,700 | 2,700 |
| Hisingen, other | 2,000 | 2,000 | 2,000 |
| Mölndal | 2,000 | 2,000 | 2,000 |
| West Gothenburg | 1,200 | 1,200 | 1,200 |
| East Gothenburg | 2,500 | 2,500 | 2,500 |
Logistics rental market remains attractive
Torslanda and Arendal offer the best logistics location in Sweden with access to roads, railways and the largest port in the Nordic region. Including the overall handling cost, this means that market participants are prepared to pay higher rents here than in other locations. The average rent for a logistics facility in a Class A location in Gothenburg is currently approximately SEK 675/sq. m. Vacancy rates for logistics facilities in Class A locations in Gothenburg stood at 2.0% in 2019 and are expected to remain at 2.0% in 2020.
In general, vacancy rates for logistics properties in Sweden are low, which is due to the fact that fewer logistics facilities are being built as speculative projects here than in the rest of Europe. Access to land for which a detailed development plan is in place is limited in certain geographical areas, creating the conditions for higher rent levels. This also offers good opportunities for realising new production on our existing land earmarked for exploitation.
The logistics sector too is taking a wait-and-see approach to letting for the next few months. Once again, at the time of writing there are industries which with varying degrees of urgency are looking for new premises, potentially presenting an opportunity for transactions.
Rental market, logistics
| Prime Rent (SEK/sq. m.) | 2019 | 2018 | 2017 |
|---|---|---|---|
| Stockholm Class A location | 850 | 850 | 850 |
| Stockholm Class B location | 670 | 670 | 670 |
| Gothenburg Class A location |
675 | 675 | 710 |
| Gothenburg Class B location |
600 | 600 | 610 |
| Malmö Class A location | 650 | 650 | 680 |
| Malmö Class B location | 455 | 455 | 455 |
Reduced activity in property market
In 2019 the proportion of foreign investors was around 30% due to the weak Swedish krona in combination with high liquidity in the global capital market. In view of the recent turmoil in the global markets, the transactions market in 2020 will most probably adopt a wait-and-see approach.
The support package launched by the government will contribute to good liquidity. However, the cost of borrowed capital has increased, meaning that companies whose balance sheets are already under pressure are in a more exposed position than companies with a lower loan-to-value ratio and healthier finances.
Office property worth SEK 28.4 billion changes hands
In the first three months of this year, office property worth SEK 28.4 billion changed hands in Sweden, compared with SEK 9.6 billion in the same period in 2019 (SBB's acquisition of Hemfosa accounted for around SEK 15.9 billion of transactions in the first quarter of this year).
Properties with secure cash flows and a relatively low counterparty risk will be attractive to investors in the short term. Large amounts of capital remain available, for instance from pension funds looking for suitable investment objects.
The difference between the long-term borrowing rate and the yield on office property in the central parts of Gothenburg was at a record high level of over 4.00% at the end of 2019. Since 2008, the average difference has been just over 3.00%. Whether the markets have already priced in the recent increase in the cost of capital in required yields remains to be seen and it is currently too early to say whether they will rise or remain at the present levels.
Property market, office space
| Prime Yield (%) | Q4 2019 | Q1 2019 | Q4 2018 |
|---|---|---|---|
| Central Business District (CBD) |
4.00 | 4.00 | 4.00 |
| City centre excl. CBD | 4.25 | 4.25 | 4.25 |
| Norra Älvstranden | 4.25 | 4.25 | 4.25 |
| Hisingen, other | 5.50 | 5.50 | 5.50 |
| Mölndal | 5.75 | 5.75 | 5.75 |
| West Gothenburg | 6.50 | 6.50 | 6.50 |
| East Gothenburg | 5.00 | 5.00 | 5.00 |
Structural demand for logistics property
In the first quarter, industrial property worth SEK 2.1 billion changed hands in Sweden, compared with SEK 8.5 billion in the same period in 2019. Note that in the corresponding quarter of 2019, two large portfolio transactions worth more than SEK 3.5 billion were carried out.
In recent years, demand for logistics property has driven down yield requirements by over one percentage point to around 4.50% for newly built logistics facilities in Torslanda and Arendal. Demand for modern logistics properties in good locations is high and supply is currently low. It is however too early to say how required yields for these types of property will be affected in the coming months.
In the long term, demand for modern logistics properties in good locations is expected to be good, driven mostly by growing online sales volumes and the fact that consumers require shorter delivery times. These requirements mean having more, and more efficient, facilities closer to the end customer. In the USA and the UK, customers are currently offered delivery within a few hours. Everything suggests that Sweden will see the same development.
Property market, logistics
| Yield (%) | 2019 | 2018 | 2017 |
|---|---|---|---|
| Stockholm Class A location | 4.65 | 5.00 | 5.50 |
| Stockholm Class B location | 6.00 | 6.25 | 6.25 |
| Gothenburg Class A location |
4.65 | 5.00 | 5.50 |
| Gothenburg Class B location |
6.00 | 6.25 | 6.25 |
| Malmö Class A location | 5.40 | 5.75 | 6.00 |
| Malmö Class B location | 6.75 | 7.00 | 7.00 |
Share and shareholders
Platzer's Class B shares have been listed on NASDAQ Stockholm, Mid Cap, since 29 November 2013. The company's share price at 31 March 2020 was SEK 70.70 per share, corresponding to a market capitalisation of SEK 8,471 million based on the number of outstanding shares. In the first quarter of the year, a total of 8.8 million (7.3) shares, worth a total of SEK 827 million (500), changed hands. Average daily turnover was around 140,000 (116,000) shares.
Share capital
Platzer's share capital as at the balance sheet date amounted to SEK 11,993,429, divided between 20,000,000 Class A shares with 10 votes per share, and 99,934,292 Class B shares carrying one vote per share. Each share has a quotient value of SEK 0.10. Platzer's holding of own shares consists of 118,429 Class B shares after shares from the company's own holding were awarded to senior executives as part of a share incentive scheme that finished in the second quarter of 2018.
In connection with the listing in November 2013, the company carried out a new issue of shares priced at SEK 26.50 each, which raised SEK 651 million net of issue costs.
The most recent change in share capital took place in the fourth quarter of 2016, when Platzer carried out a rights issue of SEK 718 million.
Dividend policy and dividend
The long-term policy is to pay a dividend of 50% of income from property management after current tax.
The Board of Directors has proposed to the Annual General Meeting that a dividend of SEK 2.00 per share (1.70) be paid in respect of results in 2019 to be paid in two instalments of SEK 1.00 each, on each occasion.
Ownership
Platzer (tot. avk) OMX Stockholm Real Estate PI
OMX Stockholm PI
Platzer volym/1 000
As at 31 March, the company had 6,057 (5,278) shareholders. Foreign ownership amounted to 7% of share capital. Platzer's Articles of Association include a pre-emptive rights clause, which states that a buyer of Class A shares, who did not previously own Class A shares, must offer other holders of Class A shares the right of first refusal, unless this acquisition took place through an intra-Group transfer or equivalent within any of the current groups of shareholders. If the holders of Class A shares do not take up this right of first refusal, the transferred shares will automatically be converted into B shares before the acquiring party is entered in the shareholders' register.
Information for shareholders
Platzer's primary information channel is the website platzer.se. All press releases and financial reports are published here. Press releases and reports can be obtained by email in connection with publication. The website also includes presentations, general information about the share and reports on corporate governance and financial data. Platzer Fastigheter Holding AB (publ)
Platzer Fastigheter Holding AB (publ) Platzer
Största aktieägare i Platzer Fastigheter Holding AB (publ) per 31 mars 2020
| Namn | Antal A-aktier |
Antal B-aktier |
Antal aktier |
Andel röster, % |
Andel kapital, % |
|---|---|---|---|---|---|
| Ernström & C:o | 11,000,000 | 1,573,164 | 12,573,164 | 37.2 | 10.5 |
| Länsförsäkringar Göteborg och Bohuslän | 5,000,000 | 15,203,112 | 20,203,112 | 21.7 | 16.9 |
| LF Skaraborg Förvaltning AB | 4,000,000 | 1,000,000 | 5,000,000 | 13.7 | 4.2 |
| Familjen Hielte / Hobohm | 22,558,994 | 22,558,994 | 7.5 | 18.8 | |
| Länsförsäkringar fondförvaltning AB | 17,362,013 | 17,362,013 | 5.8 | 14.5 | |
| Fjärde AP-fonden | 11,537,129 | 11,537,129 | 3.8 | 9.6 | |
| SEB Investment Management | 4,222,299 | 4,222,299 | 1.4 | 3.5 | |
| Lesley Invest (inkl privata innehav) | 4,030,562 | 4,030,562 | 1.3 | 3.4 | |
| VERDIPAPIRFOND ODIN EJENDOM | 1,699,119 | 1,699,119 | 0.6 | 1.4 | |
| Handelsbanken fonder | 1,460,302 | 1,460,302 | 0.5 | 1.2 | |
| Övriga ägare | 19,169,169 | 19,169,169 | 6.4 | 16.0 | |
| Totalt utestående aktier | 20,000,000 | 99,815,863 | 119,815,863 | 100.0 | 100.0 |
| Återköpta egna aktier | 118,429 | 118,429 | |||
| Totalt registrerade aktier | 20,000,000 | 99,934,292 | 119,934,292 |
Data per share
| 2020 Jan-Mar |
2019 Jan-Mar |
2019 Jan-Dec |
2019/2020 Apr-Mar |
|
|---|---|---|---|---|
| Equity, SEK | 74.39 | 62.65 | 70.84 | 74.39 |
| Long-term net asset value (EPRA NAV), SEK | 89.02 | 73.58 | 84.00 | 89.02 |
| Share price at year-end, SEK | 70.70 | 76.50 | 110.00 | 70.70 |
| Profit after tax, SEK 1) | 3.56 | 2.24 | 12.19 | 13.51 |
| Income from property management, SEK 2) | 1.28 | 1.24 | 5.05 | 5.10 |
| Cash flow from operating activities, SEK | 0.89 | 1.26 | 4.54 | 4.16 |
| Dividend, SEK | - | - | 2.00 | - |
| Number of shares as at the balance sheet date, thousand | 119,816 | 119,816 | 119,816 | 119,816 |
| Average number of shares, thousand | 119,816 | 119,816 | 119,816 | 119,816 |
For definitions and calculations of Key Performance Indicators, please see pages 28-29.
1) There is no dilution effect as there are no potential shares. Refers to result attributable to Parent Company's shareholders. 2) Income from property management excluding changes in value attributable to associates.
Definitions
Platzer applies ESMA guidelines on alternative performance measures. The company discloses some financial performance measures in its interim report which are not defined in IFRS. The company believes that these measures provide valuable supplementary information to investors and the company management since they facilitate evaluation of the company's performance. Because not all companies calculate financial measures in the same way, these are not always comparable with measures used by other companies. These financial measures should therefore not be viewed as a replacement for measures defined in accordance with IFRS. The table below presents the alternative performance measures considered relevant. Platzer uses the alternative performance measures debt/equity ratio, interest coverage ratio, loan-to-value ratio, equity/assets ratio and return on equity because these are considered to provide readers of the report with relevant supplementary information to enable them to assess the potential for dividends and strategic investments and also to assess the company's ability to meet its financial commitments. In addition, the company uses the key indicators investment yield and surplus ratio, which are measures that are considered to be relevant to investors who want to understand how the company generates results. As a listed company, Platzer has also opted to use key performance indicators per share that are relevant to the industry sector, such as long-term net asset value (EPRA NAV).
The key performance indicators are based on statements of income, financial position, changes in equity and cash flow. In the event that the key ratios cannot be directly derived from the above statements, the basis for and method by which these ratios are calculated are shown below.
| Alternative Performance Measures | Definition and calculation |
|---|---|
| Return on equity | Profit after tax as a percentage of average equity, converted into an annual figure for interim periods. Attributable to Parent Company's shareholders. See next page for calculation. |
| Loan-to-value ratio | Interest-bearing liabilities divided by the value of properties (including the value of properties under the heading assets held for sale). |
| Investment yield | Operating surplus as a percentage of the average value of investment and project properties, as well as properties recognised as held-for-sale assets; annualised amount given for interim periods. See next page for calculation. |
| Economic occupancy rate * | Rental income as a percentage of rental value, where rental income is defined as debited rent plus supplements for heating and property tax, and rental value is defined as rental income plus estimated market rent (rent excluding operating costs) for non-leased premises (in their 'as is' condition). |
| Rental value, SEK/sq.m.* | Rental value divided by average leasable area where rental value is defined as rental income plus estimated market rent (excluding operating costs) for non-leased premises (in their 'as is' condition). Annualised amount given for interim periods. |
| Rent increase, renegotiated leases | The increase in rent is calculated by comparing the previous rent with the new rent as per the new lease agreement. Rent is defined according to the same model as for new leases and terminated leases, see definition of Net lettings. |
| Investment gain | (Market value when completed – Investment including any cost on acquisition) / The investment |
| Long-term net asset value (EPRA NAV) |
Equity according to the balance sheet, including reversals of interest rate derivatives and de ferred tax. Attributable to Parent Company's shareholders. See next page for calculation. |
| Net lettings | Annual income and supplements relating to leases signed during the period, including deductions for discounts, less annual income and supplements relating to terminated leases in the period. All discounts are included for new leases and are annualised on the basis of the lease term. |
| In 2018 we changed the definition of rent, among other things, see Rent increase, renegotiat ed leases under Definitions. All figures and comparative figures have been restated according to the new definitions. |
|
| Key performance indicators per share: Equity, Long-term net asset value, Profit after tax, Income from property manage ment, Cash flow from operating activities |
Equity and long-term net asset value are calculated on the basis of the number of outstand ing shares as at the balance sheet date. Other indicators per share are calculated on the average number of outstanding shares. Profit after tax refers to profits attributable to the Parent Company's shareholders (definition according to IFRS). Income from property management is calculated excluding changes in value attributable to associates. |
| Interest coverage ratio | Result after financial income divided by interest expense. Excluding realised changes in the val ue of derivatives and changes in value attributable to associates. See next page for calculation. |
| Debt/equity ratio | Interest-bearing liabilities divided by equity |
| Equity/assets ratio | Equity divided by total assets. |
| Surplus ratio | Operating surplus as a percentage of rental income. |
* These key indicators are operational and are not considered to be alternative performance measures according to ESMA guidelines.
Calculation of key performance indicators
| 2020 Jan-Mar |
2019 Jan-Mar |
2019 Jan-Dec |
2019/2020 Apr-Mar |
|
|---|---|---|---|---|
| Interest coverage ratio (multiple) | ||||
| Operating surplus | 216 | 204 | 837 | 849 |
| Central administration | -15 | -14 | -52 | -53 |
| Interest income | 0 | 0 | 0 | 0 |
| Total | 201 | 190 | 785 | 796 |
| Interest expense | -49 | -43 | -182 | -188 |
| 4.1 | 4.4 | 4.3 | 4.2 | |
| Return on equity, % | ||||
| Attributable to the Parent Company's shareholders: | ||||
| Profit after tax | 1,461 | 1,619 | ||
| Income from property management (annualised amount given for interim periods) | 731 | 587 | ||
| Change in value, investment properties | 449 | 419 | ||
| Change in value, financial instruments | -94 | -189 | ||
| Total | 854 | 642 | 1,461 | 1,619 |
| Average equity | 8,701 | 7,364 | 7,859 | 8,206 |
| 10 | 9 | 19 | 20 | |
| Long-term net asset value (EPRA NAV), SEK | ||||
| Attributable to the Parent Company's shareholders: | ||||
| Equity | 8,914 | 7,498 | 8,487 | 8,917 |
| Reversal of deferred tax | 1,506 | 1,185 | 1,426 | 0 |
| Reversal of interest rate derivatives | 246 | 123 | 152 | 0 |
| Total | 10,666 | 8,806 | 10,065 | 8,917 |
| Number of shares, thousand | 119,816 | 119,684 | 119,816 | 119,816 |
| 89.02 | 73.58 | 84.00 | 74.42 | |
| Investment yield, % | ||||
| Operating surplus (annualised amount given for interim periods) | 864 | 816 | 837 | 849 |
| Average value of properties | 20,803 | 18,717 | 19,433 | 20,086 |
| 4.2 | 4.4 | 4.3 | 4.2 |
In terms of the property values used for calculation of investment yield, the average value for the full year 2019 has been adjusted for the value of the properties Tingstadsvassen 3:8 and Tingstadsvassen 4:3, which were sold in a transaction that was completed in the last quarter of 2019. The calculation also includes properties under the heading "Assets held for sale"
Financial Calendar 2020
Annual General Meeting 16 April at 15:00
Interim Report January–March 16 April at 08:00 Interim Report January–June 7 July at 08:00 Interim Report January–September 23 October at 08:00
For further information, please visit platzer.se or contact P-G Persson, CEO, on +46 (0)734 11 12 22 Fredrik Sjudin, CFO, on +46 (0)721 27 77 78 Kristina Arelis, Head of Communication, on +46 (0)705 77 51 54
Platzer - the best locations in Gothenburg
Platzer is one of the largest and leading commercial property companies in Gothenburg, primarily in office property. We are proud to be participating in the creation, preservation and regeneration of the best locations in Gothenburg. Best in Gothenburg, best for Gothenburg. Quite simply the best Platzer in Gothenburg. We own and develop 68 properties with a total area of approximately 820,000 sq. m., worth SEK 21 billion.
Vision
We aim to make Gothenburg the best city in Europe to work in.
Business concept
Platzer creates value through ownership and development of commercial property in Gothenburg.
Strategies
• District development
By taking a leading position in selected areas of the market, we are taking responsibility for developing districts that are built for people, achieve sustainable development and are home to the best workplaces in Europe.
• Growth
We create profitable growth through:
- value added management of our own properties
- active property, project and urban development
- strategic property transactions
- • Employees/organisation
We create the best workplace in this industry by attracting, developing and retaining employees from different backgrounds and with different skills, who all work together to put our core values into practice.
• Finance
Platzer's financing is based on the value of our properties, with growth primarily achieved without funding from shareholders, and the company's loan-to-value ratio reflects a reasonable level of risk in all market conditions.
• Customers
Platzer's customer relationships are managed by Platzer's own staff and we adopt a thoughtful and experiencebased approach that helps us continuously develop and boost demand for our products and services.
Sustainability
Sustainability is achieved by balancing a healthy financial position, satisfied employees, minimal environmental impact and a positive contribution to society. At Platzer, sustainability forms an integral part of operating activities and incorporates economic, ecological and social sustainability. The Company takes a systematic approach to day-to-day environmental performance and Platzer is ISO 14001 certified.
Financial targets
- Equity/assets ratio: > 30%
- Loan-to-value ratio: <60%
- Increase in net asset value: 10%/year (long-term, EPRA NAV)
- Interest coverage ratio: > 2 (multiple)
- Return on investment, project investments: >20%
Value creation
Platzer creates value through letting and management, property projects and urban development, as well as acquisitions and disposals of properties. Platzer prioritises good relationships with tenants and offers a service that focuses on close relationships and commitment.
Platzer Fastigheter Holding AB (publ) PO Box 211, SE-401 23 Gothenburg | Visiting address: Kämpegatan 7 031631200 | [email protected] | platzer.se Registered office of Board of Directors: Gothenburg | Corporate ID Number: 556746-6437