Quarterly Report • Apr 26, 2018
Quarterly Report
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Rental income increased to SEK 259 million (251)
Income from property management amounted to SEK 123 million (126)
Profit for the period amounted to SEK 373 million (218)
Property portfolio increased in value to SEK 16,015 million (15,559)
Long-term net asset value (EPRA NAV) per share was SEK 62.22 (58.39)
Earnings per share amounted to SEK 3.11 (1.81)
Lease signed with Tele2 on office space of 2,000 sq. m. in the Gamlestads torg project
Sale of residential building right in Södra Änggården to Skanska Nya Hem
Detailed development plan for the Gårda Vesta project becomes legally binding
Q1
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 69 properties with a total area of around 800,000 sq. m., worth approximately SEK 16 billion.
Platzer creates value by owning and developing 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. The Company takes a systematic approach to day-to-day environmental efforts, 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 adds 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.
Following our major property transaction with Volvo at the end of 2016 and a record year in 2017 that included large sales of residential building rights and project lettings, the first quarter of 2018 was a slightly quieter period for Platzer. Compared with the same period in the previous year, the operating surplus and income from property management were mostly unchanged.The project lettings agreed now won't have an impact on the cash flow until the projects have been developed and the tenants have moved in. However, all lettings, whether they involve projects or day-to-day business, have an impact on our property val ues. We currently have several major project underway, rent development remains strong and investment yield requirements in the mar ket are still falling slightly, and against this background our property portfolio showed a large increase in value in the first quarter.
The increase in value means that our net asset value (EPRA NAV) is growing at a substantially faster rate than our financial target of 10% per year. Net asset value grew by around 7% in the quarter compared with the end of 2017 and by 30% compared with the same period in the previous year. This was the largest year-onyear increase in EPRA NAV ever recorded by Platzer.
The operating surplus was unchanged com pared with the same quarter in the previous year, but this should not be interpreted as a sign of inactivity. The operating surplus remained unchanged due to both positive and negative items in the income statement. Items that had an adverse effect on financial per formance included the fact that we sold more properties than we acquired in the first quarter of 2017, that property costs were lower in the first quarter of 2017 due to warmer weather and fewer planned maintenance projects, that we have been vacating project properties in
Södra Änggården in order to make progress on the detailed development plan, and also the fact that non-recurring items such as the acquisition from Volvo and the letting of head office for two months in 2017 which had a positive, one-time effect on the income statement in 2017. On the plus side, we reported positive net lettings of SEK 17 million in our investment properties in 2017, while our renegotiations, which boosted rents by an average of 23% in 2017, have contributed to improved profits in 2018.
Even though the year has begun with negative net lettings in investment properties of around SEK 11 million due to an exceptionally large number of cancelled leases in the first quarter, I am convinced that we will report positive net lettings in 2018, too. The last time we reported negative net lettings in the investment portfolio for a calendar year was in 2009. Meanwhile, net lettings in the project portfolio amounted to SEK 18 million in the first quarter of 2018.
We continue to work on detailed development plans in our coming projects and prioritised areas. We are pleased to report that all obstacles to the detailed development plan in Gårda Vesta have now been removed and construction is proceeding at speed. Unfortunately, we have not been as successful with the Kineum detailed development plan as the Transport Agency has decided to appeal the plan. It is currently hard to assess what the impact of this will be on the terms and schedule of the detailed development plan.
Environmental and sustainability issues are important to us, as evidenced by the fact that 90% of our properties are environmentally certified. We take a systematic approach to sustainability issues and have been environmentally certified according to ISO 14001 since 2009. This spring we will adopt the new standard ISO 140001:2015, which involves increased focus on commercial value, management commitment, external monitoring and a structured, risk-based approach.
Exciting milestones in the coming year I am filled with anticipation for 2018, which will contain a number of exciting milestones. After the summer, the first tenants will move into our new buildings at Gamlestads torg. At the same time, this is not the only development in this area, which I consider to be one of the most interesting districts in Gothenburg where we continue to work on the detailed development plan for Gamlestadens Fabriker. We will also be able to see things start to change in Södra Änggården – the area that we are developing from an industrial area into a vibrant urban district together with Bonava, PEAB, Magnus Månsson fastigheter, Hökerum and Skanska Nya Hem. Demolition has already begun at the site where the new school will be built.
I am also looking forward to seeing the Gårda Vesta office tower rise against the sky. We aim this will be Gothenburg's first Well Building office; the first building standard that focuses solely on the health and wellbeing of people in buildings.
P-G Persson CEO
Gamlestaden is the cradle of Gothenburg. This place, New Lödöse, was the predecessor . This is also where Gothenburg began its journey to becoming an industrial city. It is possible to trace a straight line from Gamlestadens Fabriker, via SKF and Volvo, to the city's position at the forefront of global technology for automated transport systems and autonomous vehicles. It all started in Gamlestaden.
It is already possible to see the emergence of a new Gamlestaden. In the next ten years, the district will develop into one of Gothenburg's most exciting districts.
In this vibrant city district that is taking place there are both historic buildings and modern architecture, a world literature library, head offices, and housing and retail outlets all together. At Gamlestads torg, a new public transport hub is being created in the form of a travel centre for trains, trams and buses. Platzer is leading the development of central Gamlestaden, where the company owns three large properties, all of which are in the process of undergoing, or are due to undergo, major change.
In 2016, the first spade was put into the ground at Gamlestads torg – a landmark that is contributing to the skyline of the new district. By summer, both buildings will be completed. The properties have generated a lot of interest and work on letting the properties has been successful both in terms of leasing volume and rent levels. Vasttrafik is opening a new travel hub here, while the City of Gothenburg is opening a library focusing on world literature. The offices will house Tele2 and the City of Gothenburg Education Administration, among others.
In Gamlestadens Fabriker, work is continuing on developing the area into a district with both office space and housing. Gamlestadens Fabriker is located right next to Gamlestads torg. The tenants here include the production company Warner, the interiors retailer Easy Living and the fashion e-commerce company NA-KD. Close by is the Slakthus area, where the property company Klövern is planning a district similar to Kødbyen in Copenhagen or the Meatpacking District in New York. Together with other property owners in the area, Platzer is creating an attractive, vibrant centre for the entire Gamlestaden district.
Platzer's third property is Bagaregården, which is at a slightly later phase of development. This area is home to Molnlycke Health Care's head office, among others. The building links Gamlestadens Fabriker to SKF's office complex and other parts of Gamlestaden. Platzer is planning to increase the density of the area and has submitted an application for a detailed development plan for increased density of a total of 60,000 sq. m.
PLATZER INTERIM REPORT JAN-MAR 2018 7
Rendering: TMRW/Platzer
Gamlestads torg is a natural meeting place with a heritage of invention. The most inventive building in the district comprises 17 floors of modern office space, services, culture and a travel hub that will be visited by 20,000 travellers every day. Read more at gamlestadstorg.se.
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 for the period amounted to SEK 123 million (126) . Changes in the value of properties in the first quarter of the year amounted to SEK 349 million (138), while changes in the value of financial instruments totalled SEK 6 million (13). Profit after tax for the period amounted to SEK 373 million (218), up by 71%.
Rental income for the period increased to SEK 259 million (251), an increase of 3%. The increase was primarily due to index-linked rent increases this year and to a lesser extent to acquired/sold properties. Rental income from existing lease agreements was estimated to amount to SEK 1,039 million (991) on an annual basis as at 31 March 2018. The economic occupancy rate for the period was 95% (96).
In the first 3 months of this year, property costs amounted to SEK -72 million (-65). 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 and maintenance costs are subject to seasonal variations and the first quarter is weighed down by larger costs than the rest of the year, mostly due to consumption and snow removal costs.
The operating surplus for the period amounted to SEK 187 million (186). The surplus ratio was 72% (74), representing a return to a normal level for the first quarter. The investment yield for the properties was 4.7% (5.4). The reduced investment yield was due to a larger proportion of project properties and lower average market yield in the property portfolio.
Central administration expenses for the period amounted to SEK -14 million (-12). The increase was primarily due to a larger number of staff at the end of the period, up to 73 from 65 as at 31 March 2017. The ongoing share purchase programme, which will end in the second quarter of this year, weighed down the financial result for the quarter by SEK 0.6 million (0.3).
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 0 million (0).
Net financial expense for the period amounted to SEK -50 million (-48). Increased borrowings compared with the previous year in order to finance ongoing projects and net acquisitions resulted in slightly higher interest costs, which were compensated for by slightly lower interest rates in the quarter. At the end of the period, the average interest rate, including the effects of signed derivative instruments, was 2.37% (2.37).
Tax expense for the period amounted to SEK -105 million (-59). Property disposals, which give rise to realised capital gains/losses, are normally conducted as company divestments. Such gains are exempt from tax, but no such divestments took place in the quarter.
In the first quarter, the proposal "New tax regulations for the corporate sector" was referred to the Council on Legislation for consideration. This contains proposals on limiting deductions for interest rates, in accordance with EU directives. Under the proposal, deductions for interest costs would be limited to 30% of taxable EBITDA. In addition, the proposal suggests reducing corporation tax in two stages: to 21.4% from 2019 and to 20.6% from 2021. The legislation is proposed to take effect on 1 January 2019. Provided the bill is passed, it is expected to have a limited effect on the tax paid by Platzer.
The so-called packaging study presented last year, which looked at taxation of the real estate sector, is expected to have a limited impact on Platzer in the long term, since Platzer focuses on development and long-term management of its own properties. It is also
unclear if and when a legislation proposal will be submitted.
Cash flow from operating activities for the period amounted to SEK 72 million (128). Income tax paid amounted to SEK -27 million, of which SEK -17 million comprised monetary settlement of previous years' taxes.
Investments in existing properties totalled SEK 107 million (85), while sales amounted to SEK 6 million (108). No acquisitions took place in the period (-). Cash flow from disposals of SEK 6 million (108) comprised the down payment received in connection with the sale of future residential building rights in Södra Änggården. The investments were fully financed with loans.
Cash flow for the period was SEK 77 million (17). Cash and cash equivalents stood at SEK 218 million (149) as at the balance sheet date. In addition to cash and cash equivalents, as at 31 March 2018 the company had unutilised credit facilities and overdraft facilities of SEK 502 million.
The properties were recognised at a fair value of SEK 16,015 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 349 million (138). 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-March was 5.4%, slightly lower than at 31 March the previous year, when it was 5.6%. The decrease was due to lower market yields.
In the first quarter Platzer concluded yet another agreement on the sale of a future residential building right in Södra Änggården, an area where Platzer is actively working on a new detailed development plan. Platzer has previously concluded agreements on the sale of ten future residential building rights 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. The properties are sold as ready to start construction, which means Platzer will bear the cost of, for example, demolition, clearance and exploitation costs of roads and parks. The disposals have not yet been recognised through profit or loss, and instead valuation of residential 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.
No properties were acquired or sold in the first quarter of this year, other than the above mentioned agreement on the sale of yet another block in Södra Änggården. Investments in existing properties in the period amounted to SEK 107 million (85), and the largest individual investment was the new build project Gamlestaden 740:132.
Equity for the Group amounted to SEK 6,335 million (5,962) as at 31 March. The equity/assets ratio as at the balance sheet date was 38% (37). Equity per share as at the balance sheet date stood at SEK 52.47 (49.36), while the long-term net asset value (EPRA NAV) was SEK 62.22 (58.39).
As at the balance sheet date, interest-bearing liabilities amounted to SEK 8,498 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 700 million. The average fixed interest term, including the effect of derivatives contracts, was 3.0 years (3.2) as at 31 December 2017. The average loan term was 1.4 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), of which SEK 300 million refers to swaps with forward start dates. The market value as at 31 March was SEK -270 million (-276), which corresponded to a change in value of SEK 6 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 value 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 73 employees (69 at the year end) at the end of the reporting period. Platzer's property portfolio is organised into two market segments with responsibility for daily operations and management as well as development of properties. The market segments are supported by two 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.
Platzer has concluded an agreement to sell the property Älvsborg 178:9 through a company divestment. The sale is in line with the company's efforts to concentrate the property portfolio on selected focus areas. In the transaction the property is valued at SEK 236.5 million, corresponding to the fair value recognised in the balance sheet at 31 March. Completion will take place on 27 April 2018
The parent company does not own any properties of its own, but instead manages certain group 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. There are no significant transactions with related parties apart from these continuing agreements, and this situation did not change in the first quarter.
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 transition to IFRS 15 and IFRS 9 has not had an impact on the group's financial performance and position. 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 will provide users of financial statements with 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.
This interim report has not been reviewed by the company's auditors.
Gothenburg, 26 April 2018
Platzer Fastigheter Holding AB (publ)
P-G Persson CEO
CONDENSED
| SEK million | 2018 Jan-Mar |
2017 Jan-Mar |
2017 Jan-Dec |
2017/2018 Apr-Mar |
|---|---|---|---|---|
| Rental income | 259 | 251 | 995 | 1,003 |
| Property costs | -72 | - 65 | - 268 | - 275 |
| Operating surplus | 187 | 186 | 727 | 728 |
| Central administration | -14 | - 12 | - 46 | - 48 |
| Share of profit of associates | 0 | 0 | 22 | 22 |
| Net financial income/expense | -50 | - 48 | - 195 | - 197 |
| Income from property management (including associate companies) | 123 | 126 | 508 | 505 |
| Change in value, investment properties | 349 | 138 | 1,214 | 1,425 |
| Change in value, financial instruments | 6 | 13 | 54 | 47 |
| Profit before tax | 478 | 277 | 1,776 | 1,977 |
| Tax on profit for the period | -105 | - 59 | - 383 | - 429 |
| Profit for the period 1) | 373 | 218 | 1,393 | 1,548 |
| Profit for the period attributable to: | ||||
| Parent company's shareholders | 372 | 217 | 1,381 | 1,536 |
| Non-controlling interests | 1 | 1 | 12 | 12 |
| Earnings per share 2) | 3.11 | 1.81 | 11.54 | 12.84 |
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. However, the number of outstanding shares will increase by 250,000 when the share saving programme is completed.
C O N D E N S E D
| SEK million | 31/03/2018 | 31/03/2017 | 31/12/2017 |
|---|---|---|---|
| Assets | |||
| Investment properties | 16,015 | 13,730 | 15,559 |
| Other non-current assets | 10 | 6 | 10 |
| Non-current financial assets | 117 | 45 | 117 |
| Current assets | 195 | 117 | 109 |
| Cash and cash equivalents | 218 | 149 | 141 |
| Total assets | 16,555 | 14,047 | 15,936 |
| Equity and liabilities | |||
| Equity | 6,335 | 4,921 | 5,962 |
| Deferred tax liability | 907 | 546 | 815 |
| Non-current interest-bearing liabilities | 4,520 | 4,909 | 4,520 |
| Other non-current liabilities | 356 | 345 | 354 |
| Current interest-bearing liabilities | 3,978 | 2,946 | 3,871 |
| Other current liabilities | 459 | 380 | 414 |
| Total equity and liabilities | 16,555 | 14,047 | 15,936 |
CONDENSED
| SEK million | 2018 Jan-Mar |
2017 Jan-Mar |
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 saving programme | 0 | 0 | 2 |
| Share purchase programme | 372 | 217 | 1,381 |
| Dividend | - | - | -132 |
| At the end of the period | 6,279 | 4,873 | 5,907 |
| Equity attributable to non-controlling interests | |||
| At the beginning of the period | 55 | 47 | 47 |
| Withdrawals | - | - | -4 |
| Comprehensive income for the period | 1 | 1 | 12 |
| At the end of the period | 56 | 48 | 55 |
| Total equity | 6,335 | 4,921 | 5,962 |
| SEK million | 2018 Jan-Mar |
2017 Jan-Mar |
2017 Jan-Dec |
|---|---|---|---|
| Value of properties, opening balance | 15,559 | 13,615 | 13,615 |
| Investments in existing properties | 107 | 85 | 526 |
| Property acquisitions | - | - | 412 |
| Property sales | - | -108 | -208 |
| Changes in value | 349 | 138 | 1,214 |
| Value of properties, closing balance | 16,015 | 13,730 | 15,559 |
CONDENSED
| SEK million | 2018 Jan-Mar |
2017 Jan-Mar |
2017 Jan-Dec |
2017/2018 Apr-Mar |
|---|---|---|---|---|
| Operating activities | ||||
| Operating surplus | 187 | 186 | 727 | 728 |
| Central administration | -13 | -12 | -42 | -43 |
| Net financial income/expense | -50 | -48 | -195 | -197 |
| Income tax | -27 | -14 | -26 | -39 |
| Cash flow from operating activities before changes in working capital |
97 | 112 | 464 | 449 |
| Change in current receivables | -41 | -9 | -43 | -75 |
| Change in current liabilities | 16 | 25 | 7 | -2 |
| Cash flow from operating activities | 72 | 128 | 428 | 372 |
| Investing activities | ||||
| Investments in existing investment properties | -107 | -85 | -526 | -548 |
| Acquisitions of investment properties | - | - | -412 | -412 |
| Sale of investment properties | 6 | 108 | 305 | 203 |
| Investments in associates | - | - | -33 | -33 |
| Other investments | -1 | - | -6 | -7 |
| Cash flow from investing activities | -102 | 23 | -672 | -797 |
| Financing activities | ||||
| Change in interest-bearing liabilities | 106 | -134 | 402 | 642 |
| Changes in non-current receivables | 1 | - | -17 | -16 |
| Dividend | - | - | -132 | -132 |
| New issue | - | - | - | - |
| Cash flow from financing activities | 107 | -134 | 253 | 494 |
| Cash flow for the period | 77 | 17 | 9 | 69 |
| Cash and cash equivalents at the beginning of the period | 141 | 132 | 132 | 149 |
| Cash and cash equivalents at the end of the period | 218 | 149 | 141 | 218 |
The group has an unutilised overdraft facility of SEK 50 million (50) and unutilised credit facilities of SEK 452 million (584).
CONDENSED
| SEK million | 2018 Jan-Mar |
2017 Jan-Mar |
2017 Jan-Dec |
|---|---|---|---|
| Net sales | 6 | 4 | 14 |
| Operating expenses | - 6 | - 4 | - 18 |
| Net financial income/expense | - 26 | - 23 | - 93 |
| Change in value, financial instruments | 6 | 13 | 54 |
| Profit before tax and appropriations | - 20 | - 10 | - 43 |
| Appropriations | - | - | 350 |
| Tax | 4 | 2 | - 68 |
| Profit for the period 1) | - 16 | - 8 | 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 | 31/03/2018 | 31/03/2017 | 31/12/2017 |
|---|---|---|---|
| Assets | |||
| Participations in Group companies | 1,844 | 1,809 | 1,844 |
| Other non-current financial assets (primarily financing of Group companies) | 2,777 | 2,786 | 2,773 |
| Receivables from Group companies | 1,396 | 680 | 1,350 |
| Other current assets | 40 | 21 | 19 |
| Cash and cash equivalents | 18 | 7 | 35 |
| Total assets | 6,075 | 5,303 | 6,021 |
| Equity and liabilities | |||
| Equity | 2,636 | 2,536 | 2,652 |
| Untaxed reserves | 50 | 50 | 50 |
| Non-current liabilities | 759 | 1,645 | 1,265 |
| Current liabilities | 2,630 | 1,072 | 2,054 |
| Total equity and liabilities | 6,075 | 5,303 | 6,021 |
| 2018 Jan-Mar |
2017 Jan-Mar |
2017 Jan-Dec |
2017/2018 Apr-Mar |
|
|---|---|---|---|---|
| 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, % | 38 | 35 | 37 | 38 |
| Return on equity, % | 10.8 | 10.6 | 26.2 | 27.6 |
| Property-related | ||||
| Investment yield, % | 4.7 | 5.4 | 5.0 | 4.9 |
| Surplus ratio, % | 72 | 74 | 73 | 73 |
| Economic occupancy rate, % | 95 | 96 | 95 | 95 |
| Rental value, SEK/sq. m. | 1,367 | 1,337 | 1,326 | 1,341 |
| Lettable area, sq. m. (thousand) | 805 | 795 | 805 | 805 |
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 | 101 | 96 | 23 | 22 | 128 | 124 | 7 | 9 | 259 | 251 |
| Property costs | -22 | -23 | -6 | -7 | -40 | -32 | -4 | -3 | -72 | -65 |
| Operating surplus | 79 | 73 | 17 | 15 | 88 | 92 | 3 | 6 | 187 | 186 |
| Investment proper ties, fair value |
7,296 | 6,698 | 1,141 | 914 | 6,207 | 5,255 | 1,371 | 863 | 16,015 | 13,730 |
| Of which invest ments/acquisitions/ disposals/changes in value over the year |
142 | 72 | 29 | -99 | 111 | 67 | 174 | 75 | 456 | 115 |
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 187 million (186) and profit before tax of SEK 478 million (277) consists of central administrative costs of SEK -14 million (-12), net financial expense of SEK -50 million (-48) and changes in the value of property and derivatives of SEK 355 million (151).
| Loan maturity | |||||||
|---|---|---|---|---|---|---|---|
| Loan amount, | Average interest, |
Credit agreements, |
Utilised, | ||||
| Year | SEK million | % | SEK m | SEK m | |||
| 2018 | 3,478 | 1.71 | 3,213 | 2,891 | |||
| 2019 | 700 | 1.32 | 3,043 | 3,043 | |||
| 2020 | 800 | 2.66 | 1,526 | 1,526 | |||
| 2021 | 670 | 3.12 | 764 | 764 | |||
| 2022 | 550 | 3.64 | 274 | 274 | |||
| 2023 | 100 | 3.64 | |||||
| 2024 | 1,600 | 3.21 | |||||
| 2025 | 300 | 2.65 | |||||
| 2026 | 300 | 2.51 | |||||
| Total | 8,498 | 2.37 | 8,820 | 8,498 |
The table takes into account the effect of current derivatives contracts. In addition, the company has interest rate swaps worth SEK 300 million with forward start dates.
Pledged assets as at 31 March 2018 amounted to SEK 6,402 million (6,445).
Contingent liabilities as at 31 March 2018 amounted to SEK 8 million (8).
| 2018 | 2017 | 2016 | ||||||
|---|---|---|---|---|---|---|---|---|
| SEK million | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 |
| Rental income | 259 | 251 | 247 | 246 | 251 | 195 | 176 | 159 |
| Property costs | -72 | -78 | -60 | -65 | -65 | -53 | -46 | -37 |
| Operating surplus | 187 | 173 | 187 | 181 | 186 | 142 | 130 | 122 |
| Central administration | -14 | -17 | -8 | -9 | -12 | -14 | -5 | -9 |
| Share of profit of associates | 0 | 22 | 0 | 0 | 0 | 0 | 0 | 0 |
| Net financial income/expense | -50 | -49 | -49 | -49 | -48 | -38 | -39 | -34 |
| Income from property management | 123 | 129 | 130 | 123 | 126 | 90 | 86 | 79 |
| Change in value (incl. associates) investment | ||||||||
| properties | 349 | 841 | 113 | 122 | 138 | 199 | 79 | 95 |
| Change in value (incl. associates) financial | ||||||||
| instruments | 6 | 1 | 10 | 30 | 13 | 114 | -38 | -85 |
| Profit before tax | 478 | 971 | 253 | 275 | 277 | 403 | 127 | 89 |
| Tax on profit for the period | -105 | -211 | -52 | -61 | -59 | -86 | -28 | -20 |
| Profit for the period | 373 | 760 | 201 | 214 | 218 | 317 | 99 | 69 |
| Investment properties | 16,015 | 15,559 | 14,533 | 13,972 | 13,730 | 13,615 | 10,813 | 10,588 |
| Investment yield, % | 4.7 | 4.6 | 5.2 | 5.2 | 5.4 | 5.0 | 4.9 | 4.8 |
| Surplus ratio, % | 72 | 69 | 76 | 74 | 74 | 73 | 74 | 77 |
| Economic occupancy ra te, % | 95 | 97 | 94 | 94 | 96 | 95 | 94 | 94 |
| Return on equity, % | 10.8 | 18.8 | 9.8 | 10.2 | 10.6 | 12.7 | 8.2 | 7.1 |
| Equity per share. SEK | 52.47 | 49.36 | 43.04 | 41.41 | 40.72 | 38.90 | 37.91 | 36.92 |
| Long-term net asset value (EPRA NAV) | ||||||||
| per share, SEK | 62.22 | 58.39 | 50.70 | 48.78 | 47.87 | 45.72 | 46.96 | 45.33 |
| Share price, SEK | 52.40 | 52.00 | 50.75 | 51.25 | 43.70 | 46.20 | 56.75 | 44.60 |
| Earnings after tax per share, SEK | 3.11 | 6.31 | 1.63 | 1.79 | 1.81 | 2.95 | 0.99 | 0.71 |
| Cash flow from operating activities per | ||||||||
| share, SEK | 0.60 | 0.77 | 1.19 | 0.54 | 1.08 | 1.35 | 1.41 | 0.37 |
| Number of proper ties |
Lettable area, sq. m. |
Fair value, SEK million |
Rental value, SEK million |
Eco nomic occu pancy rate, % |
Rental income, SEK million |
Operating surplus, SEK million |
Surplus ratio, % |
|
|---|---|---|---|---|---|---|---|---|
| Central Business District | ||||||||
| (CBD) | 7 | 67,075 | 2,925 | 163 | 99 | 162 | 127 | 79 |
| Other Inner City | 15 | 139,683 | 4,371 | 260 | 94 | 244 | 192 | 79 |
| Central Gothenburg | 22 | 206,758 | 7,296 | 423 | 96 | 406 | 319 | 79 |
| East Gothenburg | 4 | 105,012 | 1,531 | 127 | 95 | 121 | 87 | 72 |
| Norra Älvstranden/Backaplan | 6 | 46,633 | 1,615 | 99 | 99 | 98 | 75 | 77 |
| Hisingen, other | 4 | 336,370 | 3,061 | 311 | 95 | 296 | 213 | 72 |
| North/East Gothenburg | 14 | 488,015 | 6,207 | 537 | 96 | 515 | 375 | 73 |
| West Gothenburg | 4 | 31,432 | 448 | 43 | 95 | 41 | 29 | 71 |
| Mölndal | 4 | 28,975 | 693 | 54 | 98 | 53 | 43 | 82 |
| South/West Gothenburg | 8 | 60,407 | 1,141 | 97 | 97 | 94 | 73 | 77 |
| Total investment properties | 44 | 755,180 | 14,644 | 1,057 | 96 | 1,015 | 767 | 76 |
| Project properties | 24 | 50,273 | 1,371 | 34 | 71 | 24 | 10 | |
| Total Platzer | 68 | 805,453 | 16,015 | 1,091 | 95 | 1,039 | 777 | 75 |
The summary comprises the property portfolio as at 31 March 2018 and provides a snapshot of the company's earning capacity, and it does not constitute 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 divisions is in line with the general area division 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 or project properties as a separate item, regardless of their location in Gothenburg. The project section includes all our properties in the Södra Änggården project, where Platzer is actively managing the work of a new detailed development plan, which is expected to be legaly binding in the second half of 2018.
Rental value refers to rental income plus the estimated market rent for vacant premises in their existing 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 14 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.
In addition to the table, the company has signed lease agreements for ongoing new build projects of SEK 75 million in annual rent .
The operating surplus shows the properties' earning potential on an annual basis, defined as contracted rental income as at 1 April 2018, less estimated property costs including property management for a rolling 12-month period.
Platzer owns and develops commercial properties in the Gothenburg area. Our properties are concentrated in selected focus areas where the city is growing: partly in public transport hubs prioritised by the city authorities and partly in development areas prioritised by us. Our strategy of concentration involves a specific area focus and our aim is to be the leading player in all areas we prioritise. Currently, Platzer is the leading player in Gullbergsvass, Gårda, Gamlestaden, Arendal and Södra Änggården.
As at 31 March 2018, the property portfolio comprised a total of 68 properties, including 24 project properties, with a fair value of SEK 16,015 million. The total lettable area was 805,453 sq. m., divided as follows: offices 52%, retail 2%, industrial/warehouses 30% and other 16%. The economic occupancy rate in the period was 95% (96).
Platzer has 778 lease agreements for non-residential premises generating rental income of SEK 999 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.
The twenty largest lease agreements accounted for 36% of the rental value. The average remaining maturity was 40 months.
In addition, Platzer has concluded lease agreements for new-build and conversion projects with occupancy in 2018 - 2020. In addition to leases for non-residential premises there are parking agreements for indoor and outdoor parking, short-term parking, agreements for advertising signs and masts with a total rental value of SEK 40 million.
The outlook for the property market in Gothenburg remains good. Interest rates are expected to remain at current levels during 2018, before rising slightly in early 2019. Access to capital is good, and willingness to invest remains strong among foreign and institutional investors in particular. Unemployment in Gothenburg is low and economic conditions in the region remain good, spurred by the motor industry.
In 2017, many well-known players either entered or strengthened their position in the Gothenburg property market. For instance, both Folksam and Atrium Ljungberg acquired office properties in the city centre and in Norra Älvstranden, boosting transaction volume in the financial year.
Transaction volume in the first quarter of 2018 amounted to approximately SEK 1.5 billion, compared with approximately SEK 3.0 billion in the same quarter in the previous year. Transaction volume in the first quarter in Sweden as a whole declined compared with the same period in the previous year. The proportion of foreign investors who have chosen to buy properties in Sweden was up compared to previous years, however.
Investment yield requirements remain low and were largely unchanged in the first quarter of 2018. Once again, the office properties in Central Business District (CBD) and Norra Älvstranden accounted for the lowest required investment yields in the Gothenburg area. Many observers believe that investment yield requirements will not continue to decline at the same rate as in previous years.
Conditions in the office rental market in Gothenburg remain favourable. In 2017, total lettings volume amounted to 142,000 sq. m., compared with 145,000 sq. m. in the previous year. The strongest development in office rents was reported in the areas CBD, Norra Älvstranden and East Gothenburg (including Gamlestaden), where rents increased by seven, eight and 100 per cent respectively. The fact that rent levels in East Gothenburg doubled is a good example of what letting of new production can do for market rents in areas that have not previously had access to these kinds of premises.
The market is boosted by high demand for modern office space in central Gothenburg and in Norra Älvstranden. At the same time, the vacancy rate is the lowest in Gothenburg for 10 years, with Norra Älvstranden reporting a vacancy rate of less than one per cent. Letting volumes are 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: Datscha and Newsec market report offices March 2018.
In the first quarter, Platzer signed an agreement with Skanska Nya Hem on the sale of a future building right in Södra Änggården – an area where Platzer is actively 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 residential building rights being planned in the area. These agreements, too, are conditional on the detailed development plan becoming legally binding.
The disposals were not recognised through profit or loss in the period and valuation (in accordance with Platzer's valuation principles) of residential building rights, not including detailed development plan risks, will take place when the detailed development plan has become legally binding.
No acquisitions took place in the period.
Transactions after the end of the reporting period Since the end of the reporting period, Platzer has sold the property Älvsborg 178:9 at Redegatan 1. The sale is in line with the company's efforts to concentrate its property selected focus areas. The property comprises around 13,800 sq. m. and was valued at around SEK 236.5 million in the transaction. The buyer was Fastighets AB Regio and the deal will be completed on 27 April 2018.
Platzer's development projects comprise both individual properties and entire areas of mixed-use development. Projects currently underway comprise 45,000 sq. m. of lettable area, while the potential development projects have a gross floor area (GFA) of around 700,000 sq. m. The total project volume is estimated at approximately SEK 17 billion, of which SEK 10 billion comprises commercial property and SEK 7 billion residential property. Platzer develops detailed development plans for housing and then sells these residential building rights so that the company can focus on the commercial properties.
Property development of Gullbergsvass 5:10 is in progress. This involves refurbishment of the entire building and an extension of approximately 2,000 sq. m. of office space. Letting is underway and Platzer moved its head office to this building in the fourth quarter of 2017.
Construction is underway at Gamlestads torg (Gamlestaden 740:132), where occupancy is expected in summer 2018. The project comprises around 17,000 sq. m. In addition to previous leases signed with Västtrafik, a world literature library and the City of Gothenburg Education Administration, in the first quarter we concluded a lease with Tele 2 for around 2,000 sq. m.
In the first quarter of 2018, the detailed development plan for Gårda Vesta became legally binding. This means that we have started construction with work on preparing the ground. The property comprises 26,600 sq. m., of which 15,000 sq. m. is let to the Swedish Tax Agency.
In addition to Gårda Vesta, we have yet another high rise project (Kineum) in Gårda of around 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 NCC will complete the deal when the detailed development plan has become legally binding.
In Gårda there is also a detailed development plan for a further office building – Källhuset, which comprises 2,000 sq. m.
Property development involves development of existing buildings. 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 KvarterETT, which has been transformed from a building with traditional offices for one tenant to a flexible workplace for several tenants with different requirements. The property houses everything from activity-based office premises and common meeting rooms to a restaurant and modern visitors' lounge.
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 take 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 players 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 residential 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, mixed-use urban district.
Norra Högsbo is being developed into Södra Änggården – a vibrant city district comprising homes, schools and commercial space. 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. A decision on the detailed development plan is expected in the second quarter of 2018 and construction is expected to start in 2019. In 2017, Platzer concluded agreements to sell a large proportion of the future residential building rights to Bonava, Peab Bostad, Magnus Månsson Fastigheter and Hökerum Bygg. During first quarter, the company sold additional residential building rights worth SEK 60 million to Skanska Nya Hem.
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. Platzer owns 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. In the neighbouring property Bagaregården 17:26, Platzer has submitted an application for an amendment to the detailed development plan for a total of 60,000 sq. m.
Backaplan is to be developed into vibrant city district with housing, offices and retail. Work on the detailed development plan is underway in collaboration with the municipality and several property owners. Platzer owns properties comprising around 80,000 sq. m. of gross floor area (GFA) in this district.
Torslanda/Arendal is one of Sweden's best logistics locations. Platzer currently owns 787,000 sq. m. of land in Torslanda, including building rights for 180,000 sq. m. GFA for logistics/industrial use, fo r which a detailed development plan is in place.
| Property | Type 1) | Converted area, lettable area, sq. m. |
New area, lettable area, sq. m. |
Total inv. incl. land, SEK million |
Of which outstanding inv., SEK million |
Rental value, SEK million 2) |
Occu pancy |
rate, % Completed |
|---|---|---|---|---|---|---|---|---|
| Livered 1:329*** | Property Dev. |
14,000 | 110 | - | 33 | 100 | Q1 2018 | |
| Gamlestaden 740:132 |
Project Dev. |
16,800 | 560 | 155 | 46 | 67 | Q3 2018 | |
| Gullbergsvass 5:10 | Property Dev. |
11,400 | 1,600 | 250 | 171 | 35 | * 40 |
Q3 2019 |
| Gårda 2:12, Gårda Vesta |
Project Dev. |
26,600 | 1,020 | 949 | 74 | 56 | Q2 2021 | |
| Total | 25,400 | 45,000 | 1,940 | 1,275 | 188 |
| Type of | New floor area (gross) |
Potential construc |
|||
|---|---|---|---|---|---|
| Property | Type 1) | property | sq. m. | Project phase | tion start 3) |
| Gårda 4:11 | Project Dev. | offices | 2,000 | detailed development plan available | 2018 |
| (Källhuset building) | |||||
| Gårda 16:17**,Kineum | Project Dev. | offices | 30,000 | detailed development plan adopted | 2018 |
| Södra Änggården | Project Dev./ | mixed use | approx. | detailed development plan in | 2018 |
| (multiple properties) multiple | Property Dev. | development | 200,000 | progress | |
| development phases | |||||
| Sörred 7:21 | Project Dev. | Logistics/ industrial |
30,000 | detailed development plan available | 2018 |
| Sörred 3:1 | Project Dev. | Logistics/ | 60,000 | detailed development plan available | 2018 |
| industrial | |||||
| Sörred 8:12 | Project Dev. | Logistics/ | 90,000 | detailed development plan available | 2018 |
| industrial | |||||
| Olskroken 18:7 | Project Dev./ | Mixed use | 100 -120,000 | detailed development plan in | 2019 |
| 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 | Project Dev. | offices | 20,000 | detailed development plan in progress | 2019/2020 |
| Älvsborg 178:9 | Property Dev. | housing | 10-12,000 | detailed development plan to | 2021 |
| commence 2019 | |||||
| Backaplan (multiple | Project Dev. | mixed use | 60-90,000 | detailed development plan in progress | 2021/2022 |
| properties) | development | ||||
| Bagaregården 17:26 | Project Dev. | mixed use | 60,000 | decision on detailed development | 2021/2022 |
| development | plan applied for | ||||
| Total | 672,000 - 729,000 |
*) The current occupancy rate is 95%, 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
***) Tenants are paying full rent since 2016
The summary includes potential projects that have been identified for properties that the company owns or has agreed to acquire.
1) Type refers to property development (Property Dev), when existing buildings are used as a base or project development (Project Dev), which is new construction from ground up.
2) Refers to estimated rental value when the property is finished and fully let.
3) Potential construction start means the date when it is estimated the project could commence, provided that work on the detailed development plan proceeds as expected and letting has reached a satisfactory level.
| 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 | |||
| Älvsborg 178:9 | Långedrag | Redegatan 1 | 1993 | 9,718 | 296 | 3,862 | 13,876 | |
| 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 | 417,927 | 16,851 | 239,665 | 80,737 | 755,180 |
| Project properties | Area | Address | Site area Lettable 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 | 1972 | 8,200 | 3,390 |
| 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 | 1974 | 6,500 | 3,898 |
| 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 | 50,273 | |||
| TOTAL investment properties and project properties | 805,453 |
*) Part of the project Södra Änggården
| Year of | Industrial/ | |||||||
|---|---|---|---|---|---|---|---|---|
| Investment property | Area | Address | construction | 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 31 March 2018 was SEK 52.40 per share, corresponding to a market capitalisation of SEK 6,272 million based on the number of outstanding shares. In the first quarter, a total of 3.6 million (3.2) shares, worth a total of SEK 184 million (142), changed hands. Average turnover was around 57,000 (50,000) shares per day.
Platzer's share capital as at the balance sheet date amounted to SEK 11,993,429.20, divided into 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 remains 250,000 Class B shares.
In connection with the listing in November 2013, the company carried out a new issue of shares priced at SEK 26.50 each, which raised SEK 651 million net of issue costs.
The most recent change in share capital took place in the fourth quarter of 2016, when Platzer carried out a 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 Board of Directors proposes to the Annual General Meeting that a dividend of SEK 1.50 per share be paid (1.10).
At 31 March, the company had 3,843 (4,217) shareholders. Foreign ownership amounted to two 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 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 | 21.8 | 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 | 11,891,318 | 11,891,318 | 4.0 | 9.9 | |
| Länsförsäkringar fondförvaltning AB | 9,238,601 | 9,238,601 | 3.1 | 7.7 | |
| Carnegie Fonder | 7,692,826 | 7,692,826 | 2.6 | 6.4 | |
| Lesley Invest (incl. private holdings) | 4,064,362 | 4,064,362 | 1.4 | 3.4 | |
| Svolder AB | 3,810,000 | 3,810,000 | 1.3 | 3.2 | |
| RBC Investor Services Bank SA | 3,009,671 | 3,009,671 | 1.0 | 2.5 | |
| Other shareholders | 18,157,222 | 18,157,222 | 6.1 | 15.2 | |
| Total number of shares outstanding | 20,000,000 | 99,684,292 | 119,684,292 | 100.0 | 100.0 |
| Buyback of own shares | 250,000 | 250,000 | |||
| Total number of registered shares | 20,000,000 | 99,934,292 | 119,934,292 |
| 2018 Jan-Mar |
2017 Jan-Mar |
2017 Jan-Dec |
2017/2018 Apr-Mar |
|
|---|---|---|---|---|
| Equity, SEK | 52.47 | 40.72 | 49.36 | 52.47 |
| Long-term net asset value (EPRA NAV), SEK | 62.22 | 47.87 | 58.39 | 62.22 |
| Share price, SEK | 52.40 | 43.70 | 52.00 | 52.40 |
| Profit after tax, SEK 1) | 3.11 | 1.81 | 11.54 | 12.84 |
| Income from property management, SEK 3) | 1.03 | 1.05 | 4.06 | 4.05 |
| Cash flow from operating activities, SEK | 0.60 | 1.08 | 3.58 | 3.11 |
| Dividend, SEK 2) | - | - | 1.50 | 1.10 |
| Number of shares as at the balance sheet date, thousand | 119,684 | 119,684 | 119,684 | 119,684 |
| Average number of shares, thousand | 119,684 | 119,684 | 119,684 | 119,684 |
For definitions and calculations of Key Performance Indicators, please see pages 30-31.
1) There is no dilution effect, as there are no potential shares.. However, the number of outstanding shares will increase by 250,000 when the share saving scheme is completed.
2) Proposed dividend for 2017.
3) Income from property management including our share of profit of associates.
Platzer applies ESMA guidelines on alternative performance measures. The Company discloses some financial performance measures in its interim reports which are not defined in IFRS. The Company believes that these measures provide valuable supplementary information to investors and 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 seen as replacing measures defined according to IFRS. The table below shows the alternative performance measures considered relevant. Platzer uses the alternative key performance indicators debt/equity ratio, interest coverage ratio, loan-to-value ratio, equity/assets ratio and return on equity because these are considered to provide relevant supplementary information to readers of the report to
enable them to assess the ability to pay dividends, carry out 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 performance measures are based on statements of financial performance, financial position, changes in equity and cash flow. In the event that the performance measures cannot be directly derived from the above statements, the basis for and method by which these indicators are calculated is shown below.
| MEASURES | |
|---|---|
| Debt/equity ratio | Interest-bearing liabilities divided by equity. |
| Interest coverage ratio | 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 properties. |
| Equity/assets ratio | 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 performance indicators per share: | Equity and long-term net asset value are calculated on the basis of the |
| Equity, Long-term net asset value (EPRA NAV), | number of outstanding shares on the balance sheet date. Other key |
| Profit after tax, Income from property manage | ratios are calculated on the basis of the average number of outstand |
| ment, Cash flow from operating activities | ing shares. Profit after tax refers to profits attributable to the parent |
| company's shareholders (definition as per IFRS). Income from property | |
| management excluding changes in value attributable to associates. | |
| Long-term net asset value (EPRA NAV) | Equity as per the balance sheet including reversals of interest rate |
| derivatives and deferred taxes. 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 rents charged plus supplements for heating and | |
| property tax, and rental value is defined as rental income plus | |
| estimated market rent (excluding supplements) for vacant areas (in | |
| their 'as is' condition). | |
| Rental value, SEK/sq. m.* | Rental value divided by average lettable area, where rental value is |
| defined as rental income plus estimated market rent (excluding | |
| supplements) for vacant areas (in their 'as is' condition). Translated | |
| into full-year value for interim periods. |
*) The key performance indicators are operational and are not considered to be alternative performance measures according to ESMA guidelines.
| 2018 Jan-Mar |
2017 Jan-Mar |
2017 Jan-Dec |
2017/2018 Apr-Mar |
|
|---|---|---|---|---|
| Interest coverage ratio (multiple) | ||||
| Operating surplus | 187 | 186 | 727 | 728 |
| Central administration | -14 | -12 | -46 | -48 |
| Interest income | 0 | 0 | 0 | 0 |
| Total | 173 | 174 | 681 | 680 |
| Interest expense | -50 | -48 | -195 | -198 |
| 3.5 | 3.6 | 3.5 | 3.4 | |
| Return on equity, % | ||||
| Attributable to parent company's shareholders: | ||||
| Profit after tax | 1,381 | 1,536 | ||
| Income from property management (translated into full year | 491 | 496 | ||
| for interim periods) | ||||
| Change in value, investment properties | 348 | 138 | ||
| Change in value, financial instruments | 6 | 13 | ||
| Total | 659 | 505 | 1,381 | 1,536 |
| Average equity | 6,093 | 4,765 | 5,282 | 5,576 |
| 10.8 | 10.6 | 26.2 | 27.6 | |
| Long-term net asset value (EPRA NAV), SEK | ||||
| Attributable to parent company's shareholders: | ||||
| Equity | 6,279 | 4,873 | 5,907 | 6,279 |
| Reversal of deferred tax | 897 | 539 | 805 | 897 |
| Reversal of interest rate derivatives | 270 | 317 | 276 | 270 |
| Total | 7,446 | 5,729 | 6,988 | 7,446 |
| Number of shares | 119,684 | 119,684 | 119,684 | 119,684 |
| 62.22 | 47.87 | 58.39 | 62.22 | |
| Investment yield, % | ||||
| Operating surplus (translated into full year for interim | 746 | 744 | 727 | 728 |
| periods) | ||||
| Average value of properties | 15,787 | 13,673 | 14,587 | 14,873 |
| 4.7 | 5.4 | 5.0 | 4.9 |
Interim Report January-June 2018 9 July 2018 at 08:00 Interim Report January-September 2018 25 October 2018 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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