Interim / Quarterly Report • Jul 9, 2018
Interim / Quarterly Report
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Rental income increased to SEK 513 million (497)
Income from property management amounted to SEK 251 million (249)
Profit for the period amounted to SEK 649 million (432)
Property portfolio increased in value to SEK 16,118 million (15,559)
Long-term net asset value (EPRA NAV) per share was SEK 62.85 (58.39)
Earnings per share amounted to SEK 5.40 (3.60)
Construction start on the Gårda Vesta project, which will be the highest office building in Gothenburg
Disposal of the Älvsborg 178:9 office property in the area Långedrag
After the end of the reporting period: Acquisition of two properties in Gårda comprising a total of 22,400 sq. m. of office space
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 around 800,000 sq. m., total value of approximately SEK 16 billion.
Platzer creates value by owning and developing commercial properties in the Gothenburg area.
Platzer aims to be the leading property company in commercial premises in the Gothenburg area.
Sustainability is about continually taking decisions that facilitate long-term, sustainable development. This is achieved by reaching a balance between several factors: a healthy financial position, satisfied employees, minimal environmental impact and a positive contribution to society. At Platzer, sustainability is an integral part of operating activities and applies to economic, ecological and social sustainability. Platzer takes a systematic approach to day-to-day environmental performance and Platzer has held ISO 14001 certification since 2009.
For outcome, see Key Performance Indicators on page 16 and Key Performance Indicators per share on page 29.
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.
A few days after the end of the reporting period we acquired two properties in Södra Gårda comprising total office space of 22,400 sq. m. Both properties, Gårda 18:23 and Gårda 18:24, were acquired from Vasakronan at an underlying property value of SEK 1,068 million. The acquisition strengthened our position as a leading property owner in Gårda.
Following the acquisition, our investment property portfolio in the district comprises more than 70,000 sq. m. Together with our future projects in the area, we are now a large stakeholder who can continue to influence urban development of Gårda. Looking back, Gårda has been one of the districts where we have managed to create the highest values in our portfolio in the last five years, and as Gothenburg expands, I see large potential for continuing to strengthen Gårda's appeal to existing and prospective tenants.
Operating surplus grows as portfolio decreases Compared with the same period in the previous year, the operating surplus increased by over 3% from SEK 367 million to SEK 379 million despite the portfolio having declined by 17,000 sq. m. through net disposals. The fact that the operating surplus increased despite the smaller portfolio was primarily due to renegotiations in 2017 having a positive impact on financial performance.
Negative letting of SEK –11 million in the investment property portfolio in the first quarter was almost completely eliminated in the second quarter, when net letting amounted to SEK +10 million. We recorded net letting of SEK 1 million in the quarter from the project letting.
The rental market in the Gothenburg area remains strong, with rent levels continuing to grow, although my view is that the rate of growth is not as high as in 2017. In Platzer, the volume of renegotiated rents has been significantly higher in 2018 than in previous years, but we have not achieved the same percentage increases. On average, renegotiations resulted in rent increases of 4% in the period.
EPRA NAV grew by an average of around 8% in the period compared with the turn of the year 2017 and by 29% compared with the same period in the previous year, which is a high rate of growth. Yields did not really change in our valuations in the second quarter compared with the first quarter. We see no signs of market yields going to rise, but instead they are more likely to be subject to downward pressure. A clear difference between 2018 and the previous year is that transaction volume has decreased substantially. It is too early to draw any conclusions about whether this is a sign of impending change or simply a coincidence.
Our largest individual project to date, Gamlestaden 740:132, will be completed in July by our construction partner Serneke. It feels satisfying to be able to say that the project has been a success even though 30% of vacant space remains to be let.
As CEO, I feel proud that we here at Platzer had the courage to take a risk on an area and location that was not initially an obvious choice, that our cooperation with Serneke has been so successful despite us not being able to define exactly what we wanted initially, and above all proud of the work put in by the staff at both Platzer and Serneke to make this project become reality. I am now looking forward to the next phase of our development of our other properties in Gamlestaden, on the other side of the Säveån river.
Sustainable thinking is important to Platzer and therefore forms a natural part of our approach to work. As one of the leading property companies in the Gothenburg area, we care about and depend on having access to well-educated staff in our local area both in the short term and from a long-term perspective. We have therefore chosen to focus our contributions and resources on social sustainability, specifically measures directed at children and young people. The Berättarministeriet storytelling project is our single most ambitious effort and this project is now fully underway in Gothenburg, which is something we are very pleased about.
In the past year we have also decided to commit to encouraging children and young people to enjoy our industry and choose this when they move from upper secondary school to university, but it is also imperative that we are able to entice those who have completed their education to stay in the Gothenburg area. In order to highlight this
issue, during the Almedalen Week political event at Västsvenska arenan we decided to pose the question "How do we get young people to stay in Gothenburg?" with the aim of collecting 100 ideas to reverse this trend. The suggestions will be submitted to the newly elected municipal executive board after the election in the autumn.
The September election in Gothenburg will be very interesting for the property industry in general and in particular for stakeholders like us who have big plans for urban development in Gothenburg. The outcome is currently unclear.
Irrespective of the outcome of the election, I feel confident that urban development issues will be a focal point in the future. My view is that the impact on infrastructure investment and work around detailed development plans will be positive.The stage is set for an interesting election in Gothenburg in 2018.
P-G Persson CEO
Our offices are currently undergoing rapid change. New technology makes it possible to work pretty much anywhere. At the same time, a new generation is entering the labour market – a generation that has never had to sit at a desk to do school work. Together with increased competition for talent, this means a growing focus on people and human needs.
The most important function of the office today is as a meeting place. We need to be stimulated and to develop and this is why we need places where we can meet. Other types of work can be performed at home, in the cafe or on the beach. This means the office as a place is facing competition of an different kind. Today's offices are therefore increasingly being designed with the aim of attracting and retaining staff.
It is against this background that the development towards increasingly activity or business-based workplaces should be seen, with offices being tailored to the tasks to be performed. In most cases this means that staff can sit in different zones depending on the work they are doing and who they are working with. Sometimes the work will require silent working at a desk, at other times the work may benefit from us gathering round in an environment more akin to a living room than a classic office landscape.
For us here at Platzer, developments in the office sector are doubly interesting because the company is both a landlord and an employer. Our own office, for instance, is entirely business-based and adapted to our needs. At the same time, we use it as a showroom for current and prospective tenants.
Flexibility is key and each office must be tailored to the business. We therefore prefer to talk about business-based rather than activity-based. Generally speaking, however, the significance of the office as a meeting place is increasing. This is of course most noticeable in the case of businesses whose business idea is to offer meetings, such as Yesbox, that is, Almi's and Business Region Gothenburg's meeting place for entrepreneurs, which is our tenant in Gamlestadens fabriker.
Another driver is the increasing demands relating to working environment. Absence due to sickness is costly both from a human perspective and financially. In order to stimulate positive development, employers face increasing demands relating to working environment.
One example of how we as a property owner are able to contribute to positive development is our Gårda Vesta project in northern Gårda, which will be the first well building-certified office property in Gothenburg. Well building is essentially a working environment standard that takes a holistic approach to how well buildings promote the wellbeing of the occupants. The concept comprises both the physical working environment and factors that affect our mental wellbeing, such as the opportunity for recovery and stimulation in the form of nature and culture.
Development involves new requirements for employers and landlords. The working environment concept has expanded from focusing on the workplace to also include the area surrounding the office. Previously, location was the deciding factor. These days we also talk about a stimulating environment and flows.
Meanwhile, some working environment issues are becoming less relevant. For instance, having an office chair that is set up for optimum ergonomic position is not quite as essential if we don't spend all day sitting in our chairs. Furthermore, since nobody has their own chair anymore the key factor now is to be able to quickly reconfigure a chair for the person using it at any given moment.
Comparative values for income statement items refer to the corresponding period in the previous financial year and for balance sheet items as at 31/12/2017.
Income from property management in the first half of the year amounted to SEK 251 million (249). Changes in the value of properties in the period amounted to SEK 504 million (260), while changes in the value of financial instruments totalled SEK -4 million (43). Profit after tax for the period amounted to SEK 649 million (432), up by 50%.
Rental income for the period amounted to SEK 513 million (497), an increase of 3%. The increase was due to renegotiated rents, implemented property transactions and an index-linked increase for the year. Rental income from existing lease agreements was estimated at SEK 1,071 million (1,000) on an annual basis as at 30 June 2018. The economic occupancy rate for the period was 95% (95), a level that has been stable for several years.
Property costs for the period amounted to SEK -134 million (-130). The increase was primarily due to a colder winter with heavier snowfall than last year, and to the fact that last year's costs for planned maintenance in the Artosa portfolio, which had only recently been acquired at this time last year, was unusually low. Property operating expenses and maintenance costs are subject to seasonal variations. Costs in the first and fourth quarter are normally higher than in the second and third quarters, primarily due to consumption costs and snow clearance costs.
The operating surplus improved by 3% and amounted to SEK 379 million in the first half of the year (367). The surplus ratio was 74% (74). The investment yield for the properties was 4.8% (5.3). The decline in investment yield was due to a larger proportion of the property value being attributable to project properties and also to lower average market yield in the property portfolio.
Central administration costs for the year amounted to SEK -27 million (-21). The increase was primarily due to the number of staff rising to 74 the end of the period, up from 67 as at 30 June 2017. In addition, costs in the previous year showed a non-recurring item of SEK +4 million. The ongoing share incentive scheme, which will end in the second quarter of this year, weighed down the financial result for the quarter by SEK -1.1 million (-1.1).
Platzer owns 20% of SFF Holding AB and, since 31 December 2017, 50% of Kommanditbolaget Biet. Share of profit of associates for the period amounted to SEK 1 million (0).
Net financial expense for the period amounted to SEK -102 million (-97). Increased borrowings compared with the previous year in order to finance ongoing projects and net acquisitions resulted in slightly higher interest costs. At the end of the period, the average interest rate, including the effects of signed derivative instruments, was 2.43% (2.32).
Tax expense for the period amounted to SEK 102 m (-120). Property disposals, which give rise to realised capital gains/losses, are normally conducted as company divestments. These gains are exempt from tax. On 14 June, the Government took a decision on the bill "New tax regulations for the corporate sector", which contains proposals on limiting deductions for interest rates, in accordance with EU directives. The decision means that deductions for interest costs will be limited to 30% of taxable EBITDA and a reducing corporation tax in two stages: to 21.4% from 2019 and to 20.6% from 2021. The legislation will take effect on 1 January 2019. The proposal is expected to have a limited effect on the tax paid by Platzer. The decision means that deferred tax that is expected to be due in 2021 or later will now be calculated using the tax rate 20.6%, which will have a positive effect on tax for the period of around SEK 60 million.
Cash flow from operating activities in the period amounted to SEK 145 million (193). Income tax paid amounted to SEK -37 million, of which SEK -17 million comprised monetary settlement of previous years' taxes.
Investments in existing properties totalled SEK 277 million (205), while sales amounted to SEK 214 million (108). No acquisitions took place in the period (-). Cash flow from disposals included the SEK 6 million (-) down payment received in connection with the sale of future residential building rights in Södra Änggården. Cash flow for the period amounted to SEK -19 million (-13). Cash and cash equivalents as at the balance sheet date stood at SEK 122 million (119). In addition to cash and cash equivalents, as at 30 June 2018 the company had unutilised credit facilities and overdraft facilities of SEK 605 million.
Properties were recognised at a fair value of SEK 16,118 million (15,559), 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, Platzer also carries out an external valuation of a selected number of properties that constitute a cross-section of the property portfolio, normally corresponding to around 30% of the total value of the property portfolio, in order to ensure the quality of the internal valuation. The investment properties are valued within level 3 in the IFRS 13 fair value hierarchy.
The internal property valuation for the period showed a change in the value of investment properties of SEK 504 million (260). Twenty five per cent of the change in value was attributed to project development, a similar proportion was due to lower required yields in the market and the remaining 50% was attributable to rising market rents and new leases. The average required investment yield based on the valuation as at end-June was 4.8%, slightly lower than at 30 June the previous year, when it was 5.3%. The decrease was due to lower market yields.
No acquisitions took place in the first half of the year. One disposal took place, with Älvsborg 178:9 being sold through a company divestment at an underlying property value of SEK 236 million.
In addition, an agreement was concluded in the first quarter on the sale of a future property in Södra Änggården, an area where Platzer is actively involved in working on a new detailed development plan. Platzer has previously concluded agreements on the sale of ten future properties in the same area. In total, this involves 12 project properties in the Högsbo area. The sales are conditional on the detailed development plan becoming legally binding, which is expected to occur in the second half of 2018. The transaction will be implemented in three stages, with the first completion expected at the end of 2018. The received down payment of a total of SEK 103 million, SEK 6 million of which was received in the first quarter, 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 to amount to SEK 1.8 billion, of which SEK 1.7 billion is attributable to the agreements concluded so far. The properties are being sold as ready for construction, which means that Platzer is responsible for costs of 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 Platzer's 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.
Investments in existing properties in the period amounted to SEK 291 million (205), and the largest individual investment was the new build project Gamlestaden 740:132.
Consolidated equity as at end-June totalled SEK 6,432 million (5,004) following payment of a dividend of SEK 1.50 per share. The equity/assets ratio as at the balance sheet date was 39% (35). Equity per share as at the balance sheet date stood at SEK 53.21 (49.36), while the longterm net asset value (EPRA NAV) was SEK 62.85 (58.39). In the second quarter, 131,571 previously repurchased Class B shares were transferred in accordance with the terms and conditions of the share incentive scheme that ended in the second quarter.
Debt financing and changes in the value of derivatives As at the balance sheet date, interest-bearing liabilities amounted to SEK 8,474 million (8,391), which corresponded to a loan-to-value ratio of 53% (54). Current interest-bearing liabilities refer to loans that will be renegotiated in the next twelve months. Debt financing primarily comprises bank loans secured by mortgages on property. In addition, Platzer has borrowed SEK 1,113 million through three Green Bond issues via Svensk Fastighetsfinansiering (SFF). Platzer also has a commercial paper programme with a framework amount of SEK 2 billion. As at the balance sheet date, outstanding commercial paper amounted to SEK 650 million. The average fixed interest term, including the effect of derivatives contracts, was 2.7 years as at 30 June 2018 (3.2). The average loan term was 1.7 years (1.6).
In order to achieve the desired fixed interest rate structure the company uses interest rate derivatives in the form of interest rate swaps, which are recognised at fair value in the balance sheet, while gains/losses are recognised through profit or loss without applying hedge accounting. Platzer has concluded interest rate swap agreements totalling SEK 4,920 million (4,920). The market value as at 30 June was SEK -280 million (-276), which corresponded to a change in value of SEK -4 million for the period. The changes in value do not affect cash flow. During the remaining term of the derivatives, the undervalue will be resolved and will reduce financial costs 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 and capital redemption policies described above. Both the derivative instruments and the capital redemption policies are included in Level 2 in the IFRS 13 fair value hierarchy. The fair value of non-current, interest-bearing 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.
The company had 74 employees (67) at the end of the reporting period.
Platzer's property portfolio is organised into two market segments with responsibility for daily operations and property management as well as development of properties. The market segments are supported by 2 specialist units: Project Development and Lettings. Platzer's Group and staff functions comprise the CEO, transactions, finance and accounting, HR, communication/marketing and sustainability/procurement.
Rental income for the second quarter amounted to SEK 254 million (246), an increase of 3%. The operating surplus for the same period increased to SEK 192 million (181), an increase of 6%. Income from property management amounted to SEK 128 million (123), an increase of 4%. Changes in the value of properties amounted to SEK 155 million (122), while changes in the value of financial instruments totalled SEK -10 million (30).
The property Älvsborg 178:9 was sold in the second quarter.
Events after the end of the reporting period On 4 July, Platzer concluded an agreement with Vasakronan on the acquisition of two properties in Gårda comprising a total of 22,400 sq. m. of office space. The properties were acquired as a company acquisition and the underlying property value was SEK 1,068 million. Completion will take place on 30 September.
Additionally, the Gamlestads torg project was finished at the beginning of July, and the first tenants will move in in August.
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 is solely derived from invoicing for services to Group companies.
The property business, as all businesses, is always exposed to risks. Good internal controls and audits performed by external auditors, well-functioning administrative systems and policies, as well as proven procedures for property valuations are among the methods used by Platzer to manage and reduce risks. The main risks and uncertainty factors that affect Platzer have not changed over the year, and they are described in detail in the Annual Report for 2017 on pages 56-59 and 72-73.
The company's ongoing related party transactions are described in the Annual Report for 2017, page 85. The AGM on 28 April 2018 also passed a resolution to transfer, on special terms and conditions, 50% of Gårda 2:12 to Länsförsäkringar Göteborg & Bohuslän when the Gårda Vesta project is finished, which is expected to take place in 2021. There are no significant transactions with related parties apart from these continuing agreements.
Platzer prepares its consolidated financial statements in accordance with IFRS (International Financial Reporting Standards) as adopted by the EU. The same accounting policies and measurement principles have been applied as in the most recent annual report, with the exception of the introduction of IFRS 15 and IFRS 9. The interim report has been prepared in accordance with IAS 34, Interim Financial Reporting. The Parent Company applies the Annual Accounts Act and RFR2. As of 1 January 2018, the Parent Company also applies IFRS 15 and IFRS 9 as stated in the Swedish Financial Reporting Board's recommendation RFR2. The transition has not had an impact on the Parent Company's financial performance and position.
As of 1 January 2018, the Group applies the following new standards:
IFRS 9 Financial Instruments deals with the
classification, measurement and recognition of financial assets and liabilities and introduces new rules on hedge accounting. IFRS 9 replaces the parts of IAS 39 that deal with classification and measurement of financial instruments and introduces a new impairment model. In accordance with the transition rules for the standard, comparative figures for 2017 are not restated. The Group does not apply hedge accounting and therefore the new hedge accounting rules in IFRS 9 do not affect the Group. The new impairment model, which is based on expected credit losses rather than credit losses that have occurred, will also not have a significant impact on the Group, since its bad debts have historically been low and, in view of the risk characteristics of receivables, are expected to remain low in the future. The introduction of IFRS 9 has therefore not had an impact on the Group's financial performance and position.
IFRS 15 Revenue from Contracts with Customers specifies how to recognise revenue. The principles IFRS 15 is based on providing users of financial statements more relevant information about the company's revenue. According to IFRS 15, revenue must be recognised when the customer obtains control of a promised good or service and is able to use and benefit from the good or service. The Group's revenue essentially comprises rental income, which is not recognised according to this standard, and the introduction of IFRS 15 has not therefore affected the Group's financial performance and position.
IFRS 16 Leases will be applied with effect from 1 January 2019. The standard will replace IAS 17. The standard will have an impact on lessees, who will no longer be able to make a distinction between operating and financial leases. Accounting for lessors will be substantially unchanged. Our assessment is that the introduction will have a limited effect on our financial statements.
This interim report has not been reviewed by the company's auditors.
The Board of Directors and the CEO hereby confirm that the interim report, to the best of their knowledge, offers a fair presentation of the activities, position and financial performance of the Parent Company and of the Group, and describes the material risks and uncertainties that the Parent Company and the companies that form part of the Group face.
Gothenburg, 9th July 2018
Platzer Fastigheter Holding AB (publ)
Fabian Hielte Caroline Krensler Chairman of the Board Board member
Anders Jarl Erik Grimlund Board member Board member
Ricard Robbstål Charlotte Hybinette Board member Board member
P-G Persson CEO
CONDENSED
| SEK million | 2018 Apr-Jun |
2017 Apr-Jun |
2018 Jan-Jun |
2017 Jan-Jun |
2017 Jan-Dec |
2017/2018 Jul-Jun |
|---|---|---|---|---|---|---|
| Rental income | 254 | 246 | 513 | 497 | 995 | 1,011 |
| Property costs | - 62 | -65 | - 134 | - 130 | - 268 | - 272 |
| Operating surplus | 192 | 181 | 379 | 367 | 727 | 739 |
| Central administration | - 13 | -9 | - 27 | - 21 | - 46 | - 52 |
| Share of profit of associates | 1 | 0 | 0 | 0 | 22 | 23 |
| Net financial income/expense | -52 | -49 | -102 | - 97 | - 195 | -200 |
| Income from property management (including associates) |
128 | 123 | 251 | 249 | 508 | 510 |
| Change in value, investment properties | 155 | 122 | 504 | 260 | 1,214 | 1,458 |
| Change in value, financial instruments | - 10 | 30 | - 4 | 43 | 54 | 7 |
| Profit before tax | 273 | 275 | 751 | 552 | 1,776 | 1,975 |
| Tax on profit for the period | 3 | -61 | - 102 | - 120 | - 383 | - 365 |
| Profit for the period 1) | 276 | 214 | 649 | 432 | 1,393 | 1,610 |
| Profit for the period attributable to: | ||||||
| Parent company's shareholders | 275 | 213 | 647 | 430 | 1,381 | 1,598 |
| Non-controlling interests | 1 | 1 | 2 | 2 | 12 | 12 |
| Earnings per share 2) | 2,30 | 1.79 | 5,40 | 3.60 | 11.54 | 13,34 |
1) There is no other comprehensive income for the Group, and therefore the consolidated profit for the period is the same as the comprehensive income for the period.
2) There is no dilution effect because there are no potential shares.
CONDENSED
| SEK million | 2018-06-30 | 30/06/2017 | 31/12/2017 |
|---|---|---|---|
| Assets | |||
| Investment properties | 16,118 | 13,972 | 15,559 |
| Other non-current assets | 10 | 6 | 10 |
| Non-current financial assets | 121 | 45 | 117 |
| Current assets | 160 | 103 | 109 |
| Cash and cash equivalents | 122 | 119 | 141 |
| Total assets | 16,531 | 14,245 | 15,936 |
| Equity and liabilities | |||
| Equity | 6,432 | 5,004 | 5,962 |
| Deferred tax liability | 885 | 603 | 815 |
| Non-current interest-bearing liabilities | 4,217 | 4,570 | 4,520 |
| Provisions | 0 | 0 | 0 |
| Other non-current liabilities | 367 | 312 | 354 |
| Current interest-bearing liabilities | 4,257 | 3,442 | 3,871 |
| Other current liabilities | 373 | 314 | 414 |
| Total equity and liabilities | 16,531 | 14,245 | 15,936 |
CONDENSED
| SEK million | 2018 Jan-Jun |
2017 Jan-Jun |
2017 Jan-Dec |
|---|---|---|---|
| Equity attributable to the Parent Company's shareholders | |||
| At the beginning of the period | 5,907 | 4,656 | 4,656 |
| Reversal, share incentive plan | 1 | 1 | 2 |
| Comprehensive income for the period | 647 | 430 | 1,381 |
| Dividend | -180 | -132 | -132 |
| At the end of the period | 6,375 | 4,955 | 5,907 |
| Equity attributable to non-controlling interests | |||
| At the beginning of the period | 55 | 47 | 47 |
| Withdrawals | - | - | -4 |
| Comprehensive income for the period | 2 | 2 | 12 |
| At the end of the period | 57 | 49 | 55 |
| Total equity | 6,432 | 5,004 | 5,962 |
| SEK million | 2018 Jan-Jun |
2017 Jan-Jun |
2017 Jan-Dec |
|---|---|---|---|
| Value of properties, opening balance | 15,559 | 13,615 | 13,615 |
| Investments in existing properties | 291 | 205 | 526 |
| Property acquisitions | - | - | 412 |
| Property sales | -236 | -108 | -208 |
| Changes in value | 504 | 260 | 1,214 |
| Value of properties, closing balance | 16,118 | 13,972 | 15,559 |
CONDENSED
| SEK million | 2018 Apr-Jun |
2017 Apr-Jun |
2018 Jan-Jun |
2017 Jan-Jun |
2017 Jan-Dec |
2017/2018 Jul-Jun |
|---|---|---|---|---|---|---|
| Operating activities | ||||||
| Operating surplus | 192 | 181 | 379 | 367 | 727 | 739 |
| Central administration | -12 | -7 | -25 | -19 | -42 | -48 |
| Net financial income/expense | -51 | -49 | -101 | -97 | -195 | -199 |
| Income tax | -10 | -2 | -37 | -16 | -26 | -47 |
| Cash flow from operating activities | 119 | 123 | 216 | 235 | 464 | 445 |
| before changes in working capital | ||||||
| Change in current receivables | 20 | - | -21 | -9 | -43 | -55 |
| Change in current liabilities | -66 | -58 | -50 | -33 | 7 | -10 |
| Cash flow from operating activities | 73 | 65 | 145 | 193 | 428 | 380 |
| Investing activities | ||||||
| Investments in existing investment | ||||||
| properties | -170 | -120 | -277 | -205 | -526 | -598 |
| Acquisitions of investment properties | - | - | - | - | -412 | -412 |
| Disposals of investment properties | 208 | - | 214 | 108 | 305 | 411 |
| Investments in associates | - | - | - | - | -33 | -33 |
| Other investments | - | - | -1 | - | -6 | -7 |
| Cash flow from investing activities | 38 | -120 | -64 | -97 | -672 | -639 |
| Financing activities | ||||||
| Change in interest-bearing liabilities | -23 | 157 | 83 | 23 | 402 | 462 |
| Changes in non-current receivables | -4 | - | -3 | - | -17 | -20 |
| Dividend | -180 | -132 | -180 | -132 | -132 | -180 |
| New issue | - | - | - | - | - | - |
| Cash flow from financing activities | -207 | 25 | -100 | -109 | 253 | 262 |
| Cash flow for the period | -96 | -30 | -19 | -13 | 9 | 3 |
| Cash and cash equivalents at the | 218 | 149 | 141 | 132 | 132 | 119 |
| beginning of the period | ||||||
| Cash and cash equivalents at the end of the period |
122 | 119 | 122 | 119 | 141 | 122 |
The Group has an unutilised overdraft facility of SEK 50 million (50) and unutilised credit facilities of SEK 555 million (584).
CONDENSED
| SEK million | 2018 Jan-Jun |
2017 Jan-Jun |
2017 Jan-Dec |
|---|---|---|---|
| Net sales | 9 | 7 | 14 |
| Operating expenses | - 10 | - 8 | - 18 |
| Net financial income/expense | - 51 | - 46 | - 93 |
| Change in value, financial instruments | - 4 | 43 | 54 |
| Profit before tax and appropriations | - 56 | - 4 | - 43 |
| Appropriations | - | - | 350 |
| Tax | 12 | 1 | - 68 |
| Profit for the period 1) | - 44 | - 3 | 239 |
1) The Parent Company has no other comprehensive income and total comprehensive income is therefore the same as the profit for the period.
C O N D E N S E D
| SEK million | 2018-06-30 | 30/06/2017 | 31/12/2017 |
|---|---|---|---|
| Assets | |||
| Participations in Group companies | 1,844 | 1,809 | 1,844 |
| Other non-current financial assets (primarily financing of Group companies) |
2,422 | 2,785 | 2,773 |
| Receivables from Group companies | 1,140 | 924 | 1,350 |
| Other current assets | 40 | 21 | 19 |
| Cash and cash equivalents | 5 | - | 35 |
| Total assets | 5,451 | 5,539 | 6,021 |
| Equity and liabilities | |||
| Equity | 2,430 | 2,410 | 2,652 |
| Untaxed reserves | 50 | 50 | 50 |
| Non-current liabilities | 959 | 1,556 | 1,265 |
| Current liabilities | 2,012 | 1,523 | 2,054 |
| Total equity and liabilities | 5,451 | 5,539 | 6,021 |
| 2018 Jan-Jun |
2017 Jan-Jun |
2017 Jan-Dec |
2017/2018 Jul-Jun |
|
|---|---|---|---|---|
| Financial | ||||
| Debt/equity ratio (multiple) | 1.3 | 1.6 | 1.4 | 1.3 |
| Interest coverage ratio (multiple) | 3.5 | 3.6 | 3.5 | 3.4 |
| Loan-to-value ratio, % | 53 | 57 | 54 | 53 |
| Equity/assets ratio, % | 39 | 35 | 37 | 39 |
| Return on equity, % | 12.7 | 13.0 | 26.2 | 28.2 |
| Property-related | ||||
| Investment yield, % | 4.8 | 5.3 | 5.0 | 4.9 |
| Surplus ratio, % | 74 | 74 | 73 | 73 |
| Economic occupancy rate, % | 95 | 95 | 95 | 95 |
| Rental value, SEK/sq. m. | 1,391 | 1,328 | 1,326 | 1,364 |
| Lettable area, sq. m. (thousand) | 784 | 801 | 805 | 784 |
For definitions and calculations of Key Performance Indicators, please see pages 30-31.
| Central Gothenburg |
South/West Gothenburg |
North/East Gothenburg |
Project properties |
Total | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| SEK million | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 |
| Rental income | 202 | 195 | 43 | 44 | 256 | 244 | 12 | 14 | 513 | 497 |
| Property costs | -45 | -46 | -10 | -11 | -74 | -67 | -5 | -6 | -134 | -130 |
| Operating surplus | 157 | 149 | 33 | 33 | 182 | 177 | 7 | 8 | 379 | 367 |
| Investment proper ties, fair value |
7,422 | 6749 | 943 | 1023 | 6,255 | 5358 | 1,498 | 842 | 16,118 | 13,972 |
| Of which invest ments/acquisitions/ disposals/changes in value over the year |
268 | 124 | -169 | -82 | 159 | 170 | 301 | 146 | 559 | 358 |
In the Group's internal reporting, activities are divided into the segments shown above. The total operating surplus above is the same as the operating surplus reported in the income statement.
The difference between the operating surplus of SEK 379 million (367) and profit before tax of SEK 751 million (552) consists of central administrative costs of SEK -27 million (-21), net financial expense and share of profit of associates of SEK -101 million (-97) and changes in the value of property and derivatives of SEK 500 million (303).
| Loan maturity | |||||
|---|---|---|---|---|---|
| Year | Loan amount, SEK million |
Average interest, % |
Credit agreements, SEK m |
Utilised, SEK m |
|
| 2018 | 3,454 | 1.75 | 2,219 | 1,754 | |
| 2019 | 700 | 1.34 | 3,041 | 3,090 | |
| 2020 | 800 | 2.70 | 1,522 | 1,522 | |
| 2021 | 670 | 3.17 | 1,513 | 1,453 | |
| 2022 | 550 | 3.69 | 274 | 274 | |
| 2023 | 100 | 3.69 | 380 | 380 | |
| 2024 | 1,600 | 3.26 | |||
| 2025 | 300 | 2.70 | |||
| 2026 | 300 | 2.55 | |||
| Total | 8,474 | 2.43 | 8,949 | 8,474 |
The table takes into account the effect of current derivatives contracts. Pledged assets as at 30 June 2018 amounted to SEK 6,506 million (6,445). Contingent liabilities as at 30 June 2018 amounted to SEK 8 million (8).
| 2018 | 2017 | 2016 | ||||||
|---|---|---|---|---|---|---|---|---|
| SEK million | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 |
| Rental income | 254 | 259 | 251 | 247 | 246 | 251 | 195 | 176 |
| Property costs | -62 | -72 | -78 | -60 | -65 | -65 | -53 | -46 |
| Operating surplus | 192 | 187 | 173 | 187 | 181 | 186 | 142 | 130 |
| Central administration | -13 | -14 | -17 | -8 | -9 | -12 | -14 | -5 |
| Share of profit of associates | 1 | 0 | 22 | 0 | 0 | 0 | 0 | 0 |
| Net financial income/expense | -52 | -50 | -49 | -49 | -49 | -48 | -38 | -39 |
| Income from property management (incl. associates) | 128 | 123 | 129 | 130 | 123 | 126 | 90 | 86 |
| Change in value, investment properties | 155 | 349 | 841 | 113 | 122 | 138 | 199 | 79 |
| Change in value, financial instruments | -10 | 6 | 1 | 10 | 30 | 13 | 114 | -38 |
| Profit before tax | 273 | 478 | 971 | 253 | 275 | 277 | 403 | 127 |
| Tax on profit for the period | 3 | -105 | -211 | -52 | -61 | -59 | -86 | -28 |
| Profit for the period | 276 | 373 | 760 | 201 | 214 | 218 | 317 | 99 |
| Investment properties | 16,118 | 16,015 | 15,559 | 14,533 | 13,972 | 13,730 | 13,615 | 10,813 |
| Investment yield, % | 4.8 | 4.7 | 4.6 | 5.2 | 5.2 | 5.4 | 5.0 | 4.9 |
| Surplus ratio, % | 76 | 72 | 69 | 76 | 74 | 74 | 73 | 74 |
| Economic occupancy rate, % | 95 | 95 | 97 | 94 | 94 | 96 | 95 | 94 |
| Return on equity, % | 8.1 | 10.8 | 18.8 | 9.8 | 10.2 | 10.6 | 12.7 | 8.2 |
| Equity per share. SEK | 53.21 | 52.47 | 49.36 | 43.04 | 41.41 | 40.72 | 38.90 | 37.91 |
| Long-term net asset value (EPRA NAV) per share, SEK | 62.85 | 62.22 | 58.39 | 50.70 | 48.78 | 47.87 | 45.72 | 46.96 |
| Share price, SEK | 58.50 | 52.40 | 52.00 | 50.75 | 51.25 | 43.70 | 46.20 | 56.75 |
| Earnings after tax per share, SEK | 2.30 | 3.11 | 6.31 | 1.63 | 1.79 | 1.81 | 2.95 | 0.99 |
| Cash flow from operating activities per share, SEK | 0.61 | 0.60 | 0.77 | 1.19 | 0.54 | 1.08 | 1.35 | 1.41 |
| Number of proper ties |
Lettable area, sq. m. |
Fair value, SEK million |
Rental value, SEK million |
Economic occupancy rate, % |
Rental income, SEK million |
Operating surplus, SEK million |
Sur plus ratio, % |
|
|---|---|---|---|---|---|---|---|---|
| Central Business District (CBD) | 7 | 67,103 | 2,977 | 166 | 99 | 165 | 129 | 78 |
| Other Inner City | 15 | 139,744 | 4,445 | 270 | 93 | 252 | 193 | 77 |
| Central Gothenburg | 22 | 206,847 | 7,422 | 436 | 96 | 417 | 322 | 77 |
| East Gothenburg | 5 | 121,848 | 2,138 | 174 | 93 | 162 | 122 | 75 |
| Norra Älvstranden/Backaplan | 6 | 46,633 | 1,619 | 101 | 99 | 100 | 77 | 77 |
| Hisingen, other | 4 | 336,370 | 3,096 | 308 | 95 | 294 | 209 | 71 |
| North/East Gothenburg | 15 | 504,851 | 6,853 | 583 | 95 | 556 | 408 | 73 |
| West Gothenburg | 3 | 17,556 | 225 | 21 | 100 | 21 | 15 | 71 |
| Mölndal | 4 | 28,975 | 718 | 54 | 100 | 54 | 44 | 82 |
| South/West Gothenburg | 7 | 46,531 | 943 | 75 | 100 | 75 | 59 | 79 |
| Total investment properties | 44 | 758,229 | 15,218 | 1,094 | 96 | 1,048 | 789 | 75 |
| Project properties | 23 | 42,985 | 900 | 30 | 68 | 23 | 13 | |
| Total Platzer | 67 | 801,214 | 16,118 | 1,124 | 95 | 1,071 | 801 | 75 |
The summary comprises the property portfolio as at 30 June 2018 and provides a snapshot of the company's earning capacity, which is not a forecast.
Ahead of 2018, we have decided to review our earnings by area and we will now be reporting earnings from our properties across several more areas. The new geographical division is in line with the general area divisions used by the property industry in Gothenburg, with the exception that we are reporting our properties at Backaplan together with Norra Älvstranden. We will also continue to recognise project properties as a separate item, regardless of their location in Gothenburg. Project properties include all our properties that form part of the Södra Änggården project, where Platzer is actively involved in the process of drawing up a new detailed development plan, which is expected to gain legal force in the second half of 2018.
Rental value refers to rental income plus the estimated market rent for vacant premises in their existing 'as is' condition. The profit-related columns include valid lease agreements, including for future occupancy over the next six months, if occupancy relates to existing properties. 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 23 million.
Lease agreements with a later occupancy date or for properties currently under construction are not included. The information in the table on rental value, income and operating surplus for project properties refers to the current situation, before project start. The figures for project properties do not include properties with occupancy dates within 6 months. The table includes Gamlestads torg, Gamlestaden 740:132, this property is managed as an investment property since it will be completed in July and the first tenants are due to move in in August.
In addition to the table, the company has signed leases for ongoing new build projects worth SEK 41 million in annual rent.
The operating surplus shows the properties' earning potential on an annual basis, defined as contracted rental income as at 1 July 2018, less estimated property costs including property administration costs for a rolling 12-month period.
Platzer owns and develops commercial properties in the Gothenburg area. The properties can be divided into three geographical areas: Central Gothenburg (Centre, Gårda, Krokslätt and Gullbergsvass), South/West Gothenburg (Högsbo and Mölndal) and North/East Gothenburg (Backaplan, Gamlestaden, Lindholmen, Mölnlycke, Arendal and Torslanda). Platzer aims to be the leading player in all prioritised areas through profitable growth. Today, the company is the leading player in Arendal, Gullbergsvass, Gårda, Gamlestaden and Högsbo.
As at 30 June 2018, the property portfolio comprised 67 properties, 24 of which were project properties, with a fair value of SEK 16,118 million. Total lettable area amounted to 784,414sq. m., divided as follows: offices 55%, retail 2%, industrial/warehouses 32% and other 11%. The economic occupancy rate in the period was 95% (95).
Platzer has 768 lease agreements for non-residential premises generating rental income of SEK 1,031 million. The main tenants include Damco, DB Schenker, DFDS, DHL, the Swedish National Courts Administration, the Swedish Social Insurance Agency, the Swedish Migration Agency, Nordea, Plastal, SSAB, Sveafjord and Zenuity. In addition to leases for non-residential premises there are parking agreements for indoor, outdoor and short-term parking, as well as agreements for advertising signs and masts, with a total rental value of SEK 40 million.
The twenty largest lease agreements accounted for 35% of rental value. The average remaining term was 45 months.
In addition, Platzer has concluded lease agreements for new-build and conversion projects with occupancy in 2018 - 2020.
The rental and property market in Gothenburg remained strong in the first half of 2019. The market has been driven by a strong economy, continued low interest rates and large investments in urban development and infrastructure. In addition, the Gothenburg region is growing as a result of urbanisation.
Our assessment is that interest rates will remain low for the rest of the year before rising slightly in 2019. Access to both capital and investors looking to invest is expected to remain good. In particular, we are seeing a lot of interest from foreign and institutional investors.
In the first half of the year, total transaction volume in Gothenburg amounted to SEK 2.6 billion, compared with a transaction volume of SEK 6.7 billion in the same period in the previous year. On a national level, too, transaction volume in the first half of the year declined compared with the same period in the previous year. The proportion of foreign investors who have chosen to buy properties in Sweden increased compared with previous years.
Investment yield requirements remain low, but are no longer falling and were almost unchanged in the first half of 2018. The office properties in Central Business District (CBD) and Norra Älvstranden still accounted for the lowest required investment yields in the Gothenburg area. We believe that investment yield requirements will not continue to decline at the same rate as in previous years.
The lettings market in Gothenburg remains favourable. Lettings volume in the first quarter of 2018 amounted to 13,800 sq. m., a slight decrease compared with the previous year.
Rent levels have risen in the Gothenburg area, although this development has tapered off over the last year. Areas that are still showing rising levels of rent are CBD and Norra Älvstranden. Areas with large volumes of new production, which will result in increased supply of more up-to-date office space, will see rents continue to increase this year. A good example of the impact letting of new production can have on market rents in an area is East Gothenburg, which includes Gamlestaden, where market rents doubled.
Most in demand are modern offices in central
Gothenburg and in Norra Älvstranden. At the same time, the vacancy rate in Gothenburg is at its lowest level for 10 years. Norra Älvstranden has a vacancy rate of less than 1%. Letting volumes are slightly held back by the low supply of premises in high demand.
New production in the coming years will probably lead to a significant amount of relocation and will hopefully make it easier to meet tenants' need for modern offices that make efficient use of space. This, together with the continued strong economic situation in the Gothenburg area, bodes well for a continued strong rental market in 2018.
Source: JLL
In the first quarter, Platzer signed an agreement with Skanska Nya Hem on the sale of a future building right in Södra Änggården. Södra Änggården is an area where Platzer is actively involved in working on a new detailed development plan. The agreement is conditional on the detailed development plan becoming legally binding.
In 2017, Platzer signed agreements with Bonava, Peab Bostad, Magnus Månsson Fastigheter and Hökerum bygg for the majority of the building rights being planned in the area. These agreements, too, are conditional on the detailed development plan becoming legally binding.
The disposal was not recognised through profit or loss in the period and valuation (in accordance with Platzer's valuation principles) of building rights, not including detailed development plan risks, will take place when the detailed development plan has become legally binding.
In the second quarter of the year, Platzer sold the property Älvsborg 178:9 at Redegatan 1. The property comprises around 13,800 sq. m. and was valued at around SEK 236 million in the transaction. The buyer was Fastighets AB Regio and the transaction was completed on 27 April 2018.
No acquisitions took place in the period.
On 4 July, Platzer concluded an agreement with Vasakronan on the acquisition of two properties in Gårda comprising a total of 22,400 sq. m. of office space. The properties were acquired as a company acquisition and the underlying property value was SEK 1,068 million. Completion will take place on 30 September.
to both Linnéstaden and the natural environment of Änggårds-The properties Gårda 18:23 (Drivhuset) and Gårda 18:24 (Gårdatorget) are two office properties located in Gårda.
Platzer develops both individual properties and entire areas of mixed-use development. Our current development projects comprise a total of 45,000 sq. m. of lettable area, while potential development projects have a gross floor area (GFA) of around 700,000 sq. m. The total project volume is estimated at SEK 17 billion, of which SEK 10 billion comprises commercial property and SEK 7 billion housing. We develop detailed development plans for housing and then sells these building rights so that we can focus on the commercial properties.
Development of Gullbergsvass 5:10, where our head office is located, is ongoing. The project comprises conversion of the entire building and the creation of an additional 2,000 sq. m. of office space. During the quarter, Platzer concluded a lease agreement for 2,400 sq. m. with TTS Marine for occupancy in April 2019.
Gamlestads torg (Gamlestaden 740:132) is in the final phase and the first tenant will move in in August. The project is already an established landmark and will be the heart of the district. Gamlestads torg comprises 16,800 sq. m. During the quarter, contracts were signed for a further 300 sq. m. of office space.
In the second quarter we started the site preparation process ahead of construction of Gårda Vesta. The building will comprise a total floor area of 26,600 sq. m., 15,000 sq. m. of which is let to the Swedish Tax Agency.
In addition to Gårda Vesta, we have yet another high rise project (Kineum) in Gårda of 25,000 sq. m., where the detailed development plan has been appealed by the Swedish Transport Administration. NCC will own 50% of Kineum while the project is in progress and completion will take place when the detailed development plan has become legally binding.
Also in Gårda there is a detailed development plan for Källhuset – an office building comprising 2,000 sq. m.
Gullbergsvass is in the heart of Gothenburg, in close proximity to the main railway station Centralstationen, the new Hisingsbro bridge and, in the long term, also the Västlänken railway tunnel. We have an option to buy two building rights, comprising a total GFA of 43,000 sq. m. for the site where Göta Älvbron is located. Construction could potentially start in 2022.
Property development involves development of existing investment properties. Development is undertaken either to adapt the property for a single tenant or to change the use of the building in order to attract new tenants. A property development project can take up to two years.
An example of such a project is Gullbergsvass 5:10, which has been transformed from a building with traditional office space to a flexible workplace for tenants with different requirements.
Project development is characterised by new production. It refers to the entire process from idea to completed building. This type of development project normally takes between two and five years.
One example of project development is Gamlestads torg, where Platzer is involved in the creation of a 17-storey centrepiece building in the middle of Gamlestaden. The building helps mark a new phase in the development of the area and is already mostly let.
Urban development means that we assume greater responsibility and contribute to the development of an entire district.
Sometimes we do this on our own, but just as often we work in collaboration with other property owners or participants in the area. In the long term this helps to raise the value of our properties. Urban development projects require a long-term perspective and normally take five to ten years.
If a project has the potential for building housing to create attractive urban environments, we develop building rights that are sold to cooperation partners. Aside from creating more vibrant areas, this contributes towards financing future projects. An example of urban development is Södra Änggården, which is being developed from an area of office and industrial space to a modern, mixeduse urban district.
Södra Änggården
We are developing norra Högsbo to Södra Änggården – a vibrant urban district with housing, schools and commercial premises. A total of 2,000 new housing units are planned, 600 of which form part of BoStad 2021 and are therefore subject to a fast-track planning process.
The detailed development plan was out for consultation in the second quarter and a decision is expected at the turn of the year, with construction due to start in 2019. In 2017, we concluded agreements to sell a large proportion of the future residential building rights to Bonava, Peab Bostad, Magnus Månsson Fastigheter and Hökerum Bygg. This year we have sold a further SEK 60 million worth of residential building rights to Skanska Nya Hem. We have also started demolition and site preparation works.
Gamlestaden is one of the most interesting districts in Gothenburg, and one that is well served by public transport. In the next ten years, the district will be developed to take on more of an urban character, featuring a mixture of housing and businesses. We own three large properties and projects in Gamlestaden.
Adjacent to Gamlestads torg is Gamlestadens Fabriker (Olskroken 18:7), where work is underway on a detailed development plan. Platzer has previously concluded an agreement on the sale of future residential building rights to JM, which is now participating in development of the area. For the neighbouring property Bagaregården 17:26, we have applied for an amendment to the detailed development plan of a total of 60,000 sq. m.
Backaplan is to be transformed from a retail park with large asphalted areas to a built up urban area comprising housing, services, offices and retail. The plans include 7,000 new residential units and a commuter railway station.
The comprehensive programme proposal for Backaplan is likely to be sent out for consultation in 2018. At the same time, work is underway on the detailed development plan that the City of Gothenburg is preparing in cooperation with the property owners in the area. We own properties estimated at around 60,000 - 90,000 sq. m. of gross floor area (GFA) in Backaplan.
Torslanda/Arendal is one of the best logistics locations in Sweden. Platzer currently owns 787,000 sq. m. of land in Torslanda, including building rights for 180,000 sq. m. GFA for logistics and industrial use. A detailed development plan is in place for the building rights. Letting is currently underway.
| Property | Type 1) | Converted area, lettable area, sq. m. |
New area, lettable area, sq. m. |
Total inv. incl. land, SEK million |
Of which outstand ing inv., SEK million |
Rental value, SEK million 2) |
Occu pancy |
rate, % Completed |
|---|---|---|---|---|---|---|---|---|
| Gamlestaden 740:132, | ||||||||
| Gamlestads torg | Project Dev. | 16,800 | 560 | 113 | 46 | 67 | Q3 2018 | |
| Gullbergsvass 5:10 | Property Dev. | 11,400 | 1,600 | 269 | 175 | 35 | 40 | * Q3 2019 |
| Gårda 2:12, Gårda Vesta | Project Dev. | 26,600 | 1,050 | 938 | 74 | 56 | Q2 2021 | |
| Total | 11,400 | 45,000 | 1,879 | 1,226 | 155 |
| Potential | |||||
|---|---|---|---|---|---|
| New floor area | construction | ||||
| Property | Type 1) | Type of property | (gross) sq. m. | Project phase | start 3) |
| Gårda 4:11 | Project Dev. | offices | 2,000 | detailed development plan | 2018 |
| (Källhuset building) | available | ||||
| Gårda 16:17**), Kineum | Project Dev. | offices | 30,000 | detailed development plan adopted | 2018 |
| Södra Änggården | |||||
| (multiple properties | Urban Dev./ | mixed use | approx. | detailed development plan in | |
| and multiple | Project Dev. | development | 200,000 | progress | 2018 |
| development phases) | |||||
| Sörred 7:21 | Project Dev. | Logistics/industrial | 30,000 | detailed development plan | 2018 |
| available | |||||
| Syrhåla 3:1 | Project Dev. | Logistics/industrial | 60,000 | detailed development plan | 2018 |
| available | |||||
| Sörred 8:12 | Project Dev. | Logistics/industrial | 90,000 | detailed development plan | 2018 |
| available | |||||
| Olskroken 18:7, | Urban Dev./ | ||||
| Gamlestadens | Project Dev. | Mixed use | 100 -120,000 | detailed development plan in | 2019 |
| Fabriker | /Property Dev. | development | progress | ||
| Krokslätt 34:13 | Property Dev./ | mixed use | 10-15,000 | detailed development plan to | 2019/2020 |
| Project Dev. | development | commence 2018 | |||
| Skår 57:14, Almedals | Project Dev. | offices | 20,000 | detailed development plan in | 2019/2020 |
| fabriker | progress | ||||
| Backaplan (multiple | Project Dev. | mixed use | 60-90,000 | detailed development plan in | 2021/2022 |
| properties) | development | progress | |||
| Bagaregården 17:26 | Project Dev. | mixed use | 60,000 | decision on detailed development | 2021/2022 |
| development | plan applied for | ||||
| Gullbergsvass *** | Project Dev. | offices/housing | 43,000 | detailed development plan | 2023/2024 |
| available | |||||
| Total | 705,000 - 760,000 | ||||
| Potential | |||||
|---|---|---|---|---|---|
| New floor area | construction | ||||
| Property | Type 1) | Type of property | (gross) sq. m. | Project phase | start 3) |
| Inom Vallgraven 49:1 | Project Dev. | offices | 7,000 | detailed development plan | 2019 |
| available |
*) The current occupancy rate is 75%; the stated 40% refers to leases with long-term tenants.
**) The detailed development plan has not become legally binding because it is the subject of an appeal for a review.
***) Platzer does not currently own the land but has an option to acquire the land together with building rights at the market rate.
The summary includes potential projects that have been identified for properties that the company owns or has agreed to acquire.
| Lettable area, sq. m. | ||||||||
|---|---|---|---|---|---|---|---|---|
| Year of | Industrial/ | |||||||
| Investment property | Area | Address | construction | Offices | Retail | warehouse | Other | Total |
| Krokslätt 148:13 | Almedal | Mölndalsvägen 40-42 | 1952 | 2,581 | 616 | 20 | 3,217 | |
| Krokslätt 149:10 | Almedal | Mölndalsvägen 36-38 | 1952/98 | 7,008 | 7,008 | |||
| Skår 57:14 | Almedal | Gamla Almedalsvägen 1-51 | 1929 | 8,286 | 119 | 8,405 | ||
| Krokslätt 34:13 | Almedal | Mölndalsv 91-93 / Varbergsg 2 A-C | 1950/88 | 10,905 | 725 | 1,308 | 375 | 13,313 |
| Arendal 764:720 | Arendal | Arendal | 1960/2009 | 77,003 | 68 | 193,470 | 11,953 | 282,494 |
| Backa 173:2 | Backaplan | Deltavägen 4 | 1979 | 151 | 5,380 | 420 | 5,951 | |
| Brämaregården 35:4 | Backaplan | Vågmästaregatan 1 | 1984/1991 | 12,370 | 222 | 855 | 13,447 | |
| Tingstadsvassen 3:8 | Backaplan | Krokegårdsgatan 5 | 1991 | 29 | 3,966 | 11 | 859 | 4,865 |
| Tingstadsvassen 4:3 | Backaplan | Motorgatan 2 | 1943/1986 | 517 | 3,268 | 3,785 | ||
| Lorensberg 62:1 | City centre | Götabergsgatan 17 | 1932/1965 | 4,541 | 4,541 | |||
| Nordstaden 13:12 | City centre | Packhusplatsen 6 / N Hamngatan 2 | 1929/1993 | 5,070 | 5,070 | |||
| Nordstaden 14:1 | City centre | Postgatan 5 / Smedjegatan 2 | 1993/1995 | 8,607 | 8,607 | |||
| Nordstaden 20:5 | City centre | Packhusplatsen 3 / Kronhusg 1A | 1943 | 2,537 | 53 | 2,590 | ||
| Stampen 4:42 | City centre | Odinsgatan 8-10 / Barnhusgatan 1 | 2009 | 5,769 | 2,847 | 8,616 | ||
| Stampen 4:44 | City centre | Polhemsplatsen 5-7 / Odinsg 2-4 | 1930 | 13,538 | 13,538 | |||
| Bagaregården 17:26 | Gamlestaden | Gamlestadsv 3 / Byfogdeg 1-3, 11 | 1941/2010 | 24,977 | 365 | 7,010 | 2,555 | 34,907 |
| Olskroken 18:7 | Gamlestaden | Gamlestadsvägen 2-4 | 1729/1960 | 41,796 | 102 | 6,842 | 13,289 | 62,029 |
| Gullbergsvass 1:1 | Gullbergsvass | Lilla Bommen 3 | 1988 | 16,003 | 16,003 | |||
| Gullbergsvass 1:17 | Gullbergsvass | Lilla Bommen 8 | 1993 | 5,400 | 5,400 | |||
| Gullbergsvass 5:10 | Gullbergsvass | Kämpegatan 3-7 | 1988 | 11,925 | 336 | 463 | 12,724 | |
| Gullbergsvass 5:26 | Gullbergsvass | Kilsgatan 4 | 2010 | 15,298 | 1,383 | 16,681 | ||
| Gårda 1:15 | Gårda | Vestagatan 2 | 1971/1992 | 11,888 | 11,888 | |||
| Gårda 13:7 | Gårda | Johan Willins gata 5 | 2003 | 14,925 | 14,925 | |||
| Gårda 16:17 | Gårda | Drakegatan 6-10 | 1986 | 15,234 | 278 | 604 | 16,116 | |
| Gårda 3:12 | Gårda | Anders Personsgatan 2-6 | 1956/2015 | 3,503 | 242 | 165 | 3,910 | |
| Gårda 3:14 | Gårda | Anders Personsgatan 8-10 | 2015 | 8,758 | 8,758 | |||
| Gårda 4:11 | Gårda | Anders Personsgatan 14-16 | 1965/2002 | 7,468 | 481 | 7,949 | ||
| Högsbo 1:4 | Högsbo | Olof Asklunds gata 11-19 | 1980 | 1,638 | 1,444 | 3,082 | ||
| Högsbo 2:1 | Högsbo | Olof Asklunds gata 6-10 | 1991 | 6,325 | 6,325 | |||
| Högsbo 32:3 | Högsbo | J A Wettergrens gata 5 | 1974 | 6,381 | 1,053 | 715 | 8,149 | |
| Lindholmen 30:2 | Lindholmen | Lindholmspiren 9 | 2003 | 8,667 | 996 | 9,663 | ||
| Lindholmen 39:3 | Lindholmen | Lindholmspiren 2 | 2016 | 8922 | 8922 | |||
| Stigberget 34:12 | Masthugget | Masthuggstorget 3 | 1967/1999 | 4,457 | 2,801 | 264 | 229 | 7,751 |
| Stigberget 34:13 | Masthugget | Fjärde Långgatan 46-48 | 1969 | 7,246 | 120 | 2,382 | 9,748 | |
| Bosgården 1:71 | Mölndal | Södra Ågatan 4 | 1988 | 4,711 | 56 | 50 | 4,817 | |
| Forsåker 1:196 | Mölndal | Kvarnbygatan 10-14 | 1955/2002 | 5,317 | 150 | 5,467 | ||
| Hårddisken 1 | Mölndal | Betagatan 1 | 2016 | 2,146 | 2,608 | 4,754 | ||
| Livered 1:329 | Mölndal | Streteredsvägen 100 | 1962 | 13,937 | 13,937 | |||
| Solsten 1:110 | Mölnlycke | Företagsvägen 2 | 1991 | 1,678 | 1,089 | 356 | 3,123 | |
| Solsten 1:132 | Mölnlycke | Konstruktionsvägen 14 | 2002 | 4,953 | 4,953 | |||
| Syrhåla 3:1 | Torslanda | Bulyckevägen 25 | 1975 | 2,758 | 21,984 | 3,280 | 28,022 | |
| Sörred 7:24 | Torslanda | Gunnar Engellaus väg | 1972 | 11,035 | 4,006 | 15,041 | ||
| Sörred 8:11 | Torslanda | Amazonvägen 8-10 | 1984 | 10,813 | 10,813 | |||
| Total investment properties | 408,266 | 16,851 | 239,369 | 76,943 | 741,429 |
| Year of | Lettable area, | ||||
|---|---|---|---|---|---|
| Project properties | Area | Address | construction | Site area | sq. m. |
| Gamlestaden 740:132 | Gamlestaden | Gamlestads torg | 1,600 | - | |
| Gårda 2:12 | Gårda | Venusgatan 2-6 | 3,600 | - | |
| Högsbo 2:2*) | Högsbo | Gruvgatan 1 | 4,400 | - | |
| Högsbo 3:5*) | Högsbo | Fältspatsgatan 14 | 11,300 | - | |
| Högsbo 3:11*) | Högsbo | Fältspatsgatan 6 | 1964 | 6,000 | 8,243 |
| Högsbo 3:12*) | Högsbo | Fältspatsgatan 2-4 | 1964 | 8,400 | 10,363 |
| Högsbo 3:13*) | Högsbo | Fältspatsgatan 2 | 3,100 | - | |
| Högsbo 3:6*) | Högsbo | Fältspatsgatan 8-12 | 1964 | 8,200 | 6,535 |
| Högsbo 3:9*) | Högsbo | Olof Asklunds gata 14 | 1971 | 4,700 | 4,333 |
| Högsbo 33:1 | Högsbo | Gruvgatan | 5,500 | - | |
| Högsbo 34:13*) | Högsbo | Gruvgatan 2 | 1981 | 3,200 | 1,780 |
| Högsbo 39:1*) | Högsbo | Ingela Gathenhielms gata 4 | 8,200 | - | |
| Högsbo 4:1*) | Högsbo | Fältspatsgatan 1 / A Odhners gata 8 1965/1972 | 10,400 | 4,643 | |
| Högsbo 4:4*) | Högsbo | Fältspatsgatan 3 | 1962 | 10,300 | 6,388 |
| Högsbo 4:6*) | Högsbo | A Odhners gata 14 | 6,500 | - | |
| Högsbo 757:118*) | Högsbo | Fältspatsgatan | 2,800 | - | |
| Högsbo 757:121*) | Högsbo | Fältspatsgatan | 1,000 | - | |
| Högsbo 757:122*) | Högsbo | Fältspatsgatan | 1,000 | - | |
| Backen 2:18 | Mölndal | Streteredsvägen 100 | 6,900 | - | |
| Syrhåla 2:3 | Torslanda | Hamneviksvägen | 60,000 | - | |
| Syrhåla 4:2 | Torslanda | Bulyckevägen 7 | 172,000 | 700 | |
| Sörred 7:21 | Torslanda | Hisingsleden | 65,000 | - | |
| Sörred 8:12 | Torslanda | Sörred Norra | 254,000 | - | |
| Sörred 7:25 | Torslanda | Sörredsrondellen | 110,000 | - | |
| Total project properties | 768,100 | 42,985 | |||
| TOTAL investment properties and project properties | 784,414 |
*) Part of the project Södra Änggården
| Year of | Industrial/ construc |
|||||||
|---|---|---|---|---|---|---|---|---|
| Investment property | Area | Address | tion | Offices | Retail | warehouse | Other | Total |
| Inom Vallgraven 49:1 | City centre | Skeppsbron 5 | 1929/2012 | 4,702 | 371 | 296 | 5,369 |
Platzer's Class B shares have been listed on NAS-DAQ OMX Stockholm, Mid Cap, since 29 November 2013. The company's share price at 30 June 2018 was SEK 58.50 per share, corresponding to a market capitalisation of SEK 7,009 million based on the number of outstanding shares. In the first half of the year, a total of 8.8 million shares (5.3), worth a total of SEK 485 million (244), changed hands. Average daily turnover was around 72,000 shares per day (43,000).
Platzer's share capital as at the balance sheet date amounted to SEK 11,993,429.20, 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 the company's own holding were awarded to senior executives as part of a share incentive scheme that finished in the second quarter.
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.
The long-term policy is to pay a dividend of 50% of income from property management after tax (22% flat-rate tax). The Annual General Meeting on 26 April 2018 approved a dividend of SEK 1.50 per share (1.10) for 2017.
The number of shareholders as at 31 May stood at 4,873 (3,843). This is the largest number of shareholders reported by Platzer since the listing in 2013. Foreign ownership amounted to five per cent of equity.
Platzer's Articles of Association include a pre-emptive rights clause, which states that a buyer of Class A shares, who did not previously own Class A shares, must offer other holders of Class A shares the right of first refusal, unless this acquisition took place through an intra-group transfer or equivalent within any of the current groups of shareholders. If the holders of Class A shares do not take up this right of first refusal, the transferred shares will automatically be converted into B shares before the acquiring party is entered in the shareholders' register.
Platzer's primary information channel is platzer. se. All press releases and financial reports are published here. Press releases and reports can be obtained by email or SMS in connection with publication. The website also includes presentations, general information about the share and reports on corporate governance and financial data.
| Owners | Number of Class A shares |
Number of Class B shares |
Number of shares |
Voting rights, % |
Share of equity,% |
|---|---|---|---|---|---|
| Ernström & Co | 11,000,000 | 2,973,164 | 13,973,164 | 37.7 | 11.7 |
| Länsförsäkringar Göteborg och Bohuslän | 5,000,000 | 15,203,112 | 20,203,112 | 21.7 | 16.9 |
| Länsförsäkringar Skaraborg | 4,000,000 | 1,000,000 | 5,000,000 | 13.7 | 4.2 |
| Family Hielte/Hobohm | 22,644,016 | 22,644,016 | 7.6 | 18.9 | |
| Fourth Swedish National Pension Fund | 11,905,860 | 11,905,860 | 4.0 | 9.9 | |
| Länsförsäkringar fondförvaltning AB | 8,411,040 | 8,411,040 | 2.8 | 7.0 | |
| Carnegie Fonder | 7,642,826 | 7,642,826 | 2.5 | 6.4 | |
| Lesley Invest (incl. private holdings) | 4,064,362 | 4,064,362 | 1.4 | 3.4 | |
| Svolder AB | 4,028,811 | 4,028,811 | 1.3 | 3.4 | |
| RBC Investor Services Bank SA | 3,035,671 | 3,035,671 | 1.0 | 2.5 | |
| Other shareholders | 18,907,001 | 18,907,001 | 6.3 | 15.8 | |
| Total number of shares outstanding | 20,000,000 | 99,815,863 | 119,815,863 | 100.0 | 100.0 |
| Buyback of own shares | 118,429 | 118,429 | |||
| Total number of registered shares | 20,000,000 | 99,934,292 | 119,934,292 |
| 2018 Jan-Jun |
2017 Jan-Jun |
2017 Jan-Dec |
2017/2018 Jul-Jun |
|
|---|---|---|---|---|
| Equity, SEK | 53.21 | 41.41 | 49.36 | 53.21 |
| Long-term net asset value (EPRA NAV), SEK | 62.85 | 48.78 | 58.39 | 62.85 |
| Share price, SEK | 58.50 | 51.25 | 52.00 | 58.50 |
| Profit after tax, SEK 1) | 5.40 | 3.60 | 11.54 | 13.34 |
| Income from property management, SEK 2) | 2.10 | 2.08 | 4.06 | 4.07 |
| Cash flow from operating activities, SEK | 1.21 | 1.62 | 3.58 | 3.17 |
| Dividend, SEK | - | - | 1.50 | - |
| Number of shares as at the balance sheet date, thousand | 119,816 | 119,684 | 119,684 | 119,816 |
| Average number of shares, thousand | 119,750 | 119,684 | 119,684 | 119,750 |
For definitions and calculations of Key Performance Indicators, please see pages 30-31.
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 performance indicators investment yield and surplus ratio, which are measures that are considered 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 METHOD |
|---|---|
| Debt/equity ratio Interest coverage ratio |
Interest-bearing liabilities divided by equity. Profit after financial income divided by interest expenses. |
| Excluding changes in value attributable to associates. See next page for calculation. |
|
| Loan-to-value ratio | Interest-bearing liabilities divided by the value of the properties. |
| Equity ratio | Total shareholders' equity divided by total assets. |
| Return on equity | Profit after tax as a percentage of average equity, translated into full-year value for interim periods. Attributable to Parent Company's shareholders. See next page for calculation. |
| Key financial indicators per share: | Equity and long-term net asset value are calculated on the basis of |
| Equity, Long-term net asset value, Profit after | the number of outstanding shares as at the balance sheet date. |
| tax, Income from property management, Cash | Other indicators are calculated on the basis of the average number |
| flow from operating activities | of outstanding shares. Profit after tax refers to profits attributable to the Parent Company's shareholders (definition according to IFRS). Income from property management excluding changes in value attributable to associates. |
| Long-term net asset value (EPRA NAV) | Equity according to the balance sheet, including reversals of interest rate derivatives and deferred tax. Attributable to Parent Company's shareholders. See next page for calculation. |
| Investment yield | Operating surplus as a percentage of the average value of the properties, translated into full-year value for interim periods. See next page for calculation. |
| Surplus ratio | Operating surplus as a percentage of rental income. |
| 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). Translated into full-year value for interim periods. |
*) The key indicators are operational and are not considered to be alternative performance measures according to ESMA guidelines.
| 2018 Jan-Jun |
2017 Jan-Jun |
2017 Jan-Dec |
2017/2018 Jul-Jun |
|
|---|---|---|---|---|
| Interest coverage ratio (multiple) | ||||
| Operating surplus | 379 | 367 | 727 | 739 |
| Central administration | -27 | -21 | -46 | -52 |
| Interest income | 0 | 0 | 0 | 0 |
| Total | 352 | 346 | 681 | 687 |
| Interest expense | -102 | -97 | -195 | -200 |
| 3.5 | 3.6 | 3.5 | 3.4 | |
| Return on equity, % | ||||
| Attributable to the Parent Company's shareholders: | ||||
| Profit after tax | 1,381 | 1,598 | ||
| Income from property management (translated into full year | 502 | 495 | ||
| for interim periods) | ||||
| Change in value, investment properties | 504 | 260 | ||
| Change in value, financial instruments | -4 | 43 | ||
| Total | 782 | 622 | 1,381 | 1,598 |
| Average equity | 6,141 | 4,806 | 5,282 | 5,665 |
| 12.7 | 13.0 | 26.2 | 28.2 | |
| Long-term net asset value (EPRA NAV), SEK | ||||
| Attributable to the Parent Company's shareholders: | ||||
| Equity | 6,375 | 4,956 | 5,907 | 6,375 |
| Reversal of deferred tax | 875 | 595 | 805 | 875 |
| Reversal of interest rate derivatives | 280 | 287 | 276 | 280 |
| Total | 7,530 | 5,838 | 6,988 | 7,530 |
| Number of shares | 119,816 | 119,684 | 119,684 | 119,816 |
| 62.85 | 48.78 | 58.39 | 62.85 | |
| Investment yield, % | ||||
| Operating surplus (translated into full year for interim periods) | 756 | 734 | 727 | 739 |
| Average value of properties | 15,839 | 13,793 | 14,587 | 15,045 |
| 4.8 | 5.3 | 5.0 | 4.9 |
Interim Report January-September 2018 25 October 2018 at 08:00 Year-end Report 2018 8 February 2019 at 08:00
For further information, please visit platzer.se or contact P-G Persson, CEO, +46 (0)734 11 12 22 / Lennart Ekelund, CFO, +46 (0)703 98 47 87
P l a t z e r F a s t i g h e t e r H o l d i n g A B ( p u b l ) , P O B o x 2 11 , S E - 4 0 1 2 3 G O T H E N B U R G Office Address: Kämpegatan 7 Tel. +46 (0)31 63 12 00, Fax +46 (0)31 63 12 01 [email protected] platzer.se Registered office of Board of Directors: Gothenburg Corp. ID No: 556746-6437
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