Annual Report • Aug 22, 2017
Annual Report
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Fastighets AB Balder Interim report
January-June 2017
Fastighets AB Balder is a listed property company which shall meet the needs of different customer groups for premises and housing based on local support. Balder's real estate portfolio had a value of SEK 89.0 billion (77.5) as of 30 June 2017. The Balder share is listed on Nasdaq Stockholm, Large Cap
Comparisons stated in parenthesis refer to the corresponding period of the previous year.
| 2017 Jan-June |
2016 Jan-June |
2016 Jan-Dec |
2015 Jan-Dec |
2014 Jan-Dec |
2013 Jan-Dec |
2012 Jan-Dec |
2011 Jan-Dec |
2010 Jan-Dec |
2009 Jan-Dec |
|
|---|---|---|---|---|---|---|---|---|---|---|
| Rental income, SEKm | 2,882 | 2,565 | 5,373 | 2,711 | 2,525 | 1,884 | 1,701 | 1,466 | 1,333 | 854 |
| Profit from property management, SEKm1) | 1,296 | 1,015 | 2,265 | 1,780 | 1,275 | 854 | 691 | 516 | 417 | 315 |
| Changes in value of properties, SEKm | 2,709 | 1,651 | 4,932 | 3,388 | 3,050 | 854 | 812 | 990 | 1,047 | 4 |
| Changes in value of derivatives, SEKm | 132 | –429 | –114 | 227 | –624 | 433 | –71 | –520 | 148 | –23 |
| Profit after tax, SEKm 1) | 3,700 | 1,733 | 5,474 | 4,916 | 3,128 | 1,738 | 1,162 | 812 | 1,338 | 248 |
| Carrying amount of properties, SEKm | 89,047 | 77,538 | 86,177 | 68,456 | 37,382 | 27,532 | 22,278 | 17,556 | 14,389 | 12,669 |
| Average number of shares, thousands | 180,000 172,397 173,598 162,753 161,786 159,537 159,537 158,656 149,487 112,902 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Profit after tax, SEK | 20.00 | 9.47 | 30.38 | 28.98 | 18.10 | 10.11 | 6.69 | 4.87 | 8.95 | 2.20 |
| Profit from property management, SEK | 6.65 | 5.31 | 11.89 | 9.71 | 6.64 | 4.57 | 3.73 | 3.00 | 2.79 | 2.79 |
| Outstanding number of shares, thousands | 180,000 172,397 180,000 172,397 162,397 159,537 159,537 159,537 149,487 149,487 | |||||||||
| Shareholders' equity, SEK | 174.21 | 132.45 | 157.63 | 128.03 | 70.10 | 52.14 | 42.15 | 35.57 | 31.13 | 22.19 |
| Long-term net asset value (EPRA NAV), SEK | 215.59 | 169.39 | 198.49 | 159.14 | 86.33 | 60.50 | 50.37 | 41.83 | 32.89 | 22.16 |
| Share price on the closing date, SEK | 204.00 | 212.90 | 184.10 | 208.70 | 110.25 | 66.00 | 37.30 | 25.30 | 29.40 | 12.50 |
1) Attributable to parent company shareholders.
2) Listed associated companies at market value refers to Collector AB (publ) och Brinova Fastigheter AB (publ).
Profit from property management per ordinary share for the second quarter and the first half of 2017 improved by 19 and 25 %, respectively, compared to the same period of last year. Increasing profit from property management over time has been the most important financial performance measure for us on a day-to-day basis since Balder was established in its present form 12 years ago.
We present Balder's current earning capacity on a quarerly basis, which provides a snapshot of profit from property management on an annual basis at the end of each interim period. Compared to the same quarter of last year, the increase in current earnings per ordinary share was 25 %. If we compare with the previous quarter and yearend, the improvement was 5 and 7 %, respectively.
During the first half of 2017, we were a net seller of properties. Even including investments in constructions and projects in progress, sales were higher than all investments on a net basis. Over time, Balder will be a major net investor in properties and projects but we are flexible regarding the timing of acquisitions and investments. Thus Balder will be a net seller in certain periods and a major investor in other periods.
Since Balder now has an official rating (from S&P and Moody's), it is also extremely important to take care of our balance sheet in order to at least maintain our current credit rating.
Almost since the start of the company in its present form, Balder has made an increasing number of investments in associated companies. Investing in partly-owned companies increases the number of potential transactions, which in turn, has a positive impact on the return for Balder's shareholders in my view.
Apart from financial dividends, our partners also provide us with increased knowledge about a very wide range of areas and this is also very enriching at a personal level for me and many of my colleagues.
Our largest associated company in terms of value, Collector, will obtain a new CEO on 1 September. Liza Nyberg will succeed Lena Apler who will return to the role of a (very active) chairwoman. I have great confidence in Liza and remain very positive about Collector's growth prospects.
With this interim report, Balder has been established in its present form for 12 years. Net asset value and subscription/share price development have been as follows as of 30 June each year:
| Share price (2005 refers | |||
|---|---|---|---|
| Year | Net asset value | to subscription price) | |
| 2005 | 6.59 | 7.075 | |
| 2006 | 11.08 | 13.33 | |
| 2007 | 16.46 | 17.50 | |
| 2008 | 23.44 | 11.15 | |
| 2009 | 22.39 | 9.00 | |
| 2010 | 26.57 | 16.47 | |
| 2011 | 36.04 | 31.70 | |
| 2012 | 44.85 | 31.30 | |
| 2013 | 54.41 | 48.50 | |
| 2014 | 70.82 | 90.50 | |
| 2015 | 106.16 | 127.90 | |
| 2016 | 169.39 | 212.90 | |
| 2017 | 215.59 | 204.00 | |
Average increase per year : net asset value 34 % share price 32 %
We have made the assessment to date that the best total yield for Balder's shareholders is achieved by reinvestment of the profits generated. Looking ahead, the goal is also the same and I am optimistic about the potential to continue finding investments over time that offer a reasonably good return.
I would like to thank everyone who has been with us in one way or another during our first 12 years. I am very fortunate to be able to spend my time doing what I really want to do and also together with so many passionate colleagues.
Erik Selin Chief Executive Officer
Balder presents its earning capacity on a twelve-month basis in the table below. It is important to note that the current earning capacity should not be placed on a par with a forecast for the coming 12 months. For instance, the earning capacity contains no estimate of rental, vacancy, currency or interest rate changes.
Balder's income statement is also impacted by the development in the value of the real estate portfolio as well as future property acquisitions and/or property divestments. Additional items affecting the operating result are changes in value of derivatives. None of the above has been considered in the current earning capacity.
The earning capacity is based on the real estate portfolio's contracted rental income, estimated property costs during a normal year as well as administrative costs. The costs of the interest-bearing liabilities are based on the group's average interest rate level including the effect of derivative instruments. The tax is calculated using the effective tax rate during each period.
| SEKm | 2017 30 June |
2017 31 Mar |
2016 31 Dec |
2016 30 Sep |
2016 30 June |
2016 31 Mar |
2015 31 Dec |
2015 30 Sep |
2015 30 June |
2015 31 Mar |
2014 31 Dec |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Rental income | 5,860 | 5,700 | 5,800 | 5,470 | 5,325 | 5,135 | 5,045 | 2,725 | 2,650 | 2,745 | 2,730 |
| Property costs | –1,690 | –1,660 | –1,695 | –1,690 | –1,685 | –1,670 | –1,635 | –775 | –760 | –800 | –800 |
| Net operating income | 4,170 | 4,040 | 4,105 | 3,780 | 3,640 | 3,465 | 3,410 | 1,950 | 1,890 | 1,945 | 1,930 |
| Management and | |||||||||||
| administrative costs | –490 | –490 | –490 | –490 | –480 | –440 | –425 | –175 | –175 | –170 | –165 |
| Profit from property | |||||||||||
| management from | |||||||||||
| associated companies | 530 | 530 | 505 | 470 | 420 | 355 | 340 | 560 | 500 | 410 | 220 |
| Operating profit | 4,210 | 4,080 | 4,120 | 3,760 | 3,580 | 3,380 | 3,325 | 2,335 | 2,215 | 2,185 | 1,985 |
| Net financial items | –950 | –950 | –1,040 | –1,025 | –1,010 | –930 | –880 | –530 | –575 | –575 | –585 |
| Of which non-controlling | |||||||||||
| interests | –455 | –450 | –445 | –445 | –380 | –400 | –410 | – | – | – | – |
| Profit from | |||||||||||
| property management 1) | 2,805 | 2,680 | 2,635 | 2,290 | 2,190 | 2,050 | 2,035 | 1,805 | 1,640 | 1,610 | 1,400 |
| Tax | –605 | –580 | –570 | –490 | –470 | –440 | –439 | –397 | –361 | –354 | –308 |
| Profit after tax | 2,200 | 2,100 | 2,065 | 1,800 | 1,720 | 1,610 | 1,596 | 1,408 | 1,279 | 1,256 | 1,092 |
| Profit after tax | |||||||||||
| attributable to | |||||||||||
| Ordinary shareholders | 2,000 | 1,900 | 1,865 | 1,600 | 1,520 | 1,410 | 1,396 | 1,208 | 1,079 | 1,056 | 892 |
| Preference shareholders | 200 | 200 | 200 | 200 | 200 | 200 | 200 | 200 | 200 | 200 | 200 |
| Profit from property manage | |||||||||||
| ment per ordinary share, SEK | 14.47 | 13.78 | 13.52 | 11.92 | 11.55 | 10.73 | 10.64 | 9.88 | 8.87 | 8.68 | 7.39 |
1) Attributable to parent company shareholders.
Current earning capacity on 30 June 2017 is including the four hotel properties in Copenhagen and the hotel property in Helsinki, where closing will take place during the third quarter. In the current earning capacity the exchange rate at the end of the reporting period has been used for translation of the foreign subsidiaries' income statement items.
Under IFRS, Collector AB (publ) and Brinova Fastigheter AB (publ) should not be recognised at market value when Balder reports its participation in the profit from associated companies from these companies. In order to clarify the listed associated companies at market value, Collector and Brinova is reported below at the share price as of 30 June. Brinova Fastigheter AB (publ) is included from 30 September 2016, when the company was listed.
| SEKm | 2017 30 June |
2016 30 June |
2016 31 Dec |
|---|---|---|---|
| Assets | |||
| Investment properties | 89,047 | 77,538 | 86,177 |
| Other fixed assets | 137 | 135 | 136 |
| Participations in associated companies 1,2) | 6,861 | 6,110 | 6,673 |
| Other receivables | 1,465 | 1,575 | 1,357 |
| Cash and cash equivalents and financial investments | 3,228 | 1,124 | 1,592 |
| Total assets | 100,738 | 86,482 | 95,935 |
| Shareholders' equity and liabilities | |||
| Shareholders' equity 3) | 40,146 | 30,740 | 36,791 |
| Deferred tax liability | 6,341 | 4,473 | 5,808 |
| Interest-bearing liabilities | 50,904 | 47,281 | 49,580 |
| Derivatives | 1,106 | 1,895 | 1,547 |
| Other liabilities | 2,242 | 2,092 | 2,209 |
| Total equity and liabilities | 100,738 | 86,482 | 95,935 |
| 1) Including Balder's market value of Collector AB (publ) Collector's share price (SEK) |
4,299 95.00 |
4,453 108.25 |
4,661 103.00 |
| 2) Including Balder's market value of Brinova Fastigheter AB (publ) Brinova's share price (SEK) |
249 13.50 |
– – |
282 15.30 |
| 3) Of which non-controlling interests | 5,911 | 5,029 | 5,540 |
| SEKm | 2017 30 June |
2016 30 June |
2016 31 Dec |
|---|---|---|---|
| Opening equity | 36,791 | 29,325 | 29,325 |
| Total comprehensive income for the period/year | 4,080 | 2,126 | 6,507 |
| Dividend preference shares, approved and entered as a liability | –200 | –200 | –200 |
| Share issue, after issue costs | – | – | 1,780 |
| Transactions with non-controlling interests | –2 | –107 | –107 |
| Dividend to non-controlling interests | – | –107 | –107 |
| Non-controlling interests, arising on the acquisitions of subsidiary | 1 | – | – |
| Non-controlling interests, arising on share issue in subsidiary | – | 554 | 554 |
| The change during the period/year of listed associated companies at market value | –522 | –851 | –962 |
| Closing equity | 40,146 | 30,740 | 36,791 |
Profit from property management for the period amounted to SEK 1,508m (1,199). Profit from property management attributable to parent company shareholders increased by 28 % and amounted to SEK 1,296m (1,015), which corresponds to an increase per ordinary share by 25 % to SEK 6.65 (5.31). Profit from property management includes SEK 265m (179) in respect of associated companies.
Net profit after tax for the period amounted to SEK 3,966m (1,959). Net profit after tax for the period attributable to parent company shareholders amounted to SEK 3,700m (1,733), corresponding to SEK 20.00 per ordinary share (9.47). Profit before tax was affected by changes in value in respect of properties of SEK 2,709m (1,651), changes in value of interest rate derivatives of SEK 132m (–429) and profit from participations in associated companies of SEK 561m (196).
Rental income increased by 12 % to SEK 2,882m (2,565), of which the effect of changes in exchange rates was SEK 46m. The increase was primarily due to a changed property portfolio. The leasing portfolio was estimated to have a rental value on 30 June of SEK 6,029m (5,607). The average rental level for the entire real estate portfolio amounted to SEK 1,650/sq.m. (1,551) excl. project properties.
Rental income shows a considerable diversification of risks as regards tenants, sectors and locations. The economic occupancy rate amounted to 96 % (95) on 30 June. The total rental value of unlet areas at the end of the period amounted to SEK 269m (282) on an annual basis.
Property costs amounted to SEK 906m (855) during the period, of which the effect of changes in exchange rates was SEK 15m. The increase in property costs was mainly due to a changed property portfolio.
Net operating income increased by 16 % to SEK 1,977m (1,710), which implies a surplus ratio of 69 % (67). Operating costs normally vary with the seasons. The first and fourth quarters have higher costs than the other quarters, while the third quarter usually has the lowest cost level.
Balder carried out an individual valuation on 30 June of the entire real estate portfolio (see page 9). Unrealised changes in value during the period amounted to SEK 2,572m (1,600). Realised changes in value amounted to SEK 137m (51).
The average yield requirement as of 30 June amounted to 5.0 % (5.4), which is 0.3 percentage points lower than at year-end. The change in value during the period was attributable to improved net operating income and a reduced yield requirement.
Management and administrative costs amounted to SEK 268m (236) during the period, of which the effect of changes in exchange rates was SEK 5m.
Balder owns property managing and project developing associated companies and 44.1 % in Collector AB (publ) which is listed. Brinova Fastigheter AB (publ) is also listed and Balder's share amounts to 25.5 %. In order to clarify these associated companies value in Balder, Balder also reports a consolidated statement of financial position including listed associated companies at market value (see page 5).
During the second quarter, Balder has invested in SHH Bostad AB. SHH is a residential development company that builds sustainable rental apartments and tenant-owned apartments at reasonable prices in cities with housing shortages. Balder's share amounts to 20 %.
Profit from participations in associated companies amounted to SEK 561m (196) during the period and Balder's participation in the associated companies profit from property management amounted to SEK 265m (179).
Profit before tax was impacted by unrealised changes in value in respect of properties and interest rate derivatives of SEK 459m (71). The tax expense for the period amounted to SEK –163m (–54).
Net financial items amounted to SEK –468m (–460), of which the effect of changes in exchange rates was SEK –8m. Changes in value of interest rate derivatives amounted to SEK 132m (–429). The positive change in value of derivatives during the period is due to the fact that the interest rates have risen during the period. Unrealised changes in value do not affect the cash flow.
Net financial items are equivalent to borrowing at an average interest rate of 1.9 % (2.1) during the period, including the effect of accrued interest from interest rate derivatives.
Balder's tax cost amounted to SEK –681m (–480) of which SEK –105m (–79) is current tax for the period, mainly attributable to the consolidation of Sato Oyj, and also a deferred tax expense of SEK –576m (–401). The deferred tax expense for the period has been positively affected by property divestments through company. Previously deferred tax entered as a liabilityhas been reversed. Current tax attributable to parent company shareholders amounted to SEK –56m (–42).
The group's deferred tax liability has been calculated as the value of the net of fiscal deficits and the temporary differences between the carrying amounts and values for tax purposes of properties and interest rate derivatives. Deferred tax liabilities amounted to SEK 6,341m (4,473).
Profit from property management for the second quarter of 2017 increased by 21 % and amounted to SEK 773m (637). Profit from property management attributable to parent company shareholders for the second quarter of 2017 increased by 22 % and amounted to SEK 665m (547) which corresponds to an increase per ordinary share of 19 % to SEK 3.42 (2.88). Profit from property management included SEK 134m (100) in respect of associated companies. Rental income amounted to SEK 1,433m (1,307) and property costs amounted to SEK 433m (411), which meant that net operating income increased by 12 % to SEK 1,000m (896), of which the effect of changes in exchange rates was SEK 13m. The surplus ratio amounted to 70 % (69).
Net profit after tax for the period amounted to SEK 1,754m (1,184). Profit after tax attributable to parent company shareholders amounted to SEK 1,694m (1,026) corresponding to SEK 9.13 per ordinary share (5.66). The result was affected by changes in value in respect of properties of SEK 827m (1,026), changes in value of interest rate derivatives of SEK 85m (–193) and profit from participations in associated companies of SEK 337m (115).
Cash flow from operating activities before changes in working capital amounted to SEK 1,050m (938). Investing activities have burdened the cash flow by SEK –83m (–4,590).
During the period, acquisition of properties of SEK –1,074m (–3,853), investments in existing properties and projects of SEK –1,592m (–1,079), investments in property, plant and equipment, financial investments, associated companies and transactions with non-controlling interests SEK –182m (–372), dividends paid preference shares of SEK –100m (–100), dividend paid to non-controlling interests SEK 0m (–107) and realised changes derivatives SEK –218m (–) adds up to SEK –3,167m (–5,511).
These have been financed through cash flow from operating activities of SEK 1,001m (1,232), by property divestments of SEK 2,745m (489), financial investments of SEK 8m (224), share issue in subsidiary Sato Oyj SEK 0m (420), dividend paid from associated companies SEK 13m (–) and net borrowings of SEK 1,032m (3,432), which adds up to SEK 4,799m (5,797).
Total cash flow for the period amounted to SEK 1,632m (287).
In addition to unutilised credit facilities of SEK 4,869m (4,767), the group's cash and cash equivalents, financial investments and unutilised overdraft facilities amounted to SEK 3,578m (1,474) on 30 June.
The number of employees on 30 June amounted to 592 persons (536), of whom 296 were women (236). Balder is organised into six regions. The head office with groupwide functions is located in Gothenburg.
The parent company's operations mainly consist of performing group-wide services but an important part relates to sales of services, principally to associated companies. Sales in the parent company amounted to SEK 121m (97) during the period.
Net profit after tax amounted to SEK 1,212m (1,301). Dividend from subsidiaries was included with SEK 909m (1,430) other net financial items amounted to SEK 273m (287) of which exchange rates differences amounted to SEK –153m (2) and changes in value of interest rate derivatives amounted to SEK 122m (–441).
On 30 June Balder owned 1,132 properties (1,197) with a lettable area of 3,622 thousand sq.m. (3,571) and a value of SEK 89,047m (77,538), including project properties. Balder's total rental value excluding project properties amounted to SEK 5,975m (5,540). Balder's commercial properties are
mainly located in the central parts of the major cities.
Balder's residential properties are located in metropolitan areas and places that are growing and developing positively. Balder's ambition is to continue growing in selected markets.
| Number of properties |
Lettable area, sq.m. |
Rental value, SEKm |
Rental value, SEK/sq.m. |
Rental income, SEKm |
Economic occupancy rate, % |
Carrying amount, SEKm |
Carrying amount, % |
|
|---|---|---|---|---|---|---|---|---|
| Distributed by region | ||||||||
| Helsinki | 502 | 1,013,421 | 2,121 | 2,092 | 2,042 | 96 | 25,399 | 29 |
| Stockholm | 60 | 525,733 | 931 | 1,771 | 884 | 95 | 16,735 | 19 |
| Gothenburg | 141 | 841,545 | 1,110 | 1,319 | 1,065 | 96 | 17,620 | 20 |
| Öresund | 75 | 442,863 | 675 | 1,524 | 627 | 93 | 11,550 | 13 |
| East | 275 | 616,899 | 925 | 1,500 | 881 | 95 | 10,381 | 12 |
| North | 79 | 181,643 | 213 | 1,171 | 207 | 97 | 3,211 | 4 |
| Total | 1,132 | 3,622,104 | 5,975 | 1,650 | 5,706 | 96 | 84,897 | 95 |
| Project | 54 | 54 | 4,151 | 5 | ||||
| Total | 1,132 | 3,622,104 | 6,029 | 1,650 | 5,760 | 96 | 89,047 | 100 |
| Distributed by property category | ||||||||
| Residential | 931 | 2,331,889 | 3,874 | 1,661 | 3,732 | 96 | 49,896 | 56 |
| Office | 65 | 427,728 | 872 | 2,039 | 791 | 91 | 15,011 | 17 |
| Total | 1,132 | 3,622,104 | 6,029 | 1,650 | 5,760 | 96 | 89,047 | 100 |
|---|---|---|---|---|---|---|---|---|
| Project | 54 | 54 | 4,151 | 5 | ||||
| Total | 1,132 | 3,622,104 | 5,975 | 1,650 | 5,706 | 96 | 84,897 | 95 |
| Other | 41 | 340,984 | 593 | 1,739 | 571 | 96 | 10,187 | 11 |
| Retail | 95 | 521,503 | 637 | 1,221 | 612 | 96 | 9,803 | 11 |
1) The above table refers to the properties owned by Balder at the end of the period. Sold properties have been excluded and acquired properties have been estimated using full-year values. Other properties include hotel, educational, nursing, industrial and mixed-use properties.
North, 4
East, 12
The value of Balder's real estate portfolio is based on internal valuations. The properties in Sweden, Denmark and Norway have been valued using the cash flow based method. In Finland, in addition to the cash flow based method, the sales comparison method and valuation at acquisition cost are used. On 30 June, Balder's average yield requirement amounted to 5.0 % (5.4) excluding project and development properties. It is 0.3 percentage points lower than at year-end.
In order to quality-assure its internal valuations, Balder regularly allows parts of its portfolio to be externally valued during the period or at each year-end. Historically, deviations between external and internal valuations have been insignificant.
On 30 June, Balder had ongoing residential projects with an expected total investment of SEK 8 billion, of which about SEK 4 billion was already invested. The most large scale investments are in Copenhagen and Helsinki and mainly relate to condominiums for rent. In Copenhagen, there are currently about 1,200 apartments under construction as well as about 1,300 apartments in Helsinki.
The overall carrying amount of Balder's properties amounted to SEK 89,047m (77,538) on 30 June. The unrealised change in value during the period amounted to SEK 2,572m (1,600) and was attributable to improved net operating income and lower yield.
During the period, a total of SEK 2,532m (7,184) was invested, of which SEK 940m (6,105) related to acquisitions and SEK 1,592m (1,079) related to investments in existing properties and projects. Properties with a sales value of SEK 2,789m (725) were divested during the period. The majority of the sales during the period refers to the properties in Tranås, Falköping, Arboga and Köping. Profit from property sales amounted to SEK 137m (51). The change in the real estate portfolio during the period is presented in the table below.
| Change in carrying amount of properties | 2017 | 2016 | ||
|---|---|---|---|---|
| SEKm | Number 1) | SEKm | Number 1) | |
| Real estate portfolio, 1 January | 86,177 | 1,220 | 68,456 | 1,177 |
| Investments in existing properties and projects | 1,592 | 1,079 | ||
| Acquisitions | 940 | 21 | 6,105 | 59 |
| Sales/Reclassifications | –2,652 | –109 | –674 | –39 |
| Change in value of investment properties, unrealised | 2,572 | 1,600 | ||
| Currency changes | 417 | 971 | ||
| Real estate portfolio, 30 June | 89,047 | 1,132 | 77,538 | 1,197 |
1) Number of investment properties.
| Quarter | Number | Name of property | Property category | Lettable area, sq.m. | |
|---|---|---|---|---|---|
| Acquisitions | |||||
| One | 1 | Kvillebäcken 62:7 | Gothenburg | Project | – |
| One | 8 | Sato Oyj | Finland | Residential | 15,797 |
| Two | 1 | Ysby 2:25 | Kungsbacka | Industrial/warehouse | 1,721 |
| Two | 1 | Vindtyget 6 | Borås | Retail | 3,350 |
| Two | 1 | Nöjet 1 | Linköping | Retail | 1,380 |
| Two | 1 | Vinkeln 7 | Huddinge | Retail | 5,391 |
| Two | 1 | Badelundasåsen 3 | Västerås | Retail | 2,796 |
| Two | 1 | Backa 169:2 | Gothenburg | Retail | 3,615 |
| Two | 1 | Draglädret 1 | Malmö | Retail | 2,679 |
| Two | 1 | Traversen 1 | Kristianstad | Retail | 2,088 |
| Two | 1 | Phylatterion 6 | Trelleborg | Retail | 5,083 |
| Two | 1 | Yhdistyksentie, 545-412-4-209 | Närpes, Finland | Retail | 2,661 |
| Two | 2 | Sato Oyj | Finland | Residential | 8,944 |
| Total | 21 | 55,505 | |||
| Divestments | |||||
| One | 3 | Sato Oyj | Finland | Residential | 6,803 |
| Two | 1 | Lejonet 2 | Falköping | Residential | 6,640 |
| Two | 1 | Anden 16 | Falköping | Residential | 703 |
| Two | 1 | Skalbaggen 1 | Falköping | Residential | 856 |
| Two | 1 | Kemisten 1 | Falköping | Retail | 531 |
| Two | 1 | Agaten 11 | Falköping | Residential | 931 |
| Two | 1 | Agaten 6 | Falköping | Residential | 466 |
| Two | 1 | Apotekaren 2 | Falköping | Residential | 1,225 |
| Two | 1 | Avenboken 1 | Falköping | Residential | 1,241 |
| Two | 1 | Avenboken 2 | Falköping | Residential | 1,234 |
| Two | 1 | Bagaren 7 | Falköping | Residential | 3,403 |
| Two | 1 | Byggmästaren 9 | Falköping | Residential | 2,340 |
| Two | 1 | Ejdern 14 | Falköping | Residential | 2,305 |
| Two | 1 | Guldsmeden 21 | Falköping | Office | 623 |
| Two | 1 | Guldsmeden 7 | Falköping | Retail | 1,535 |
| Two | 1 | Hovslagaren 16 | Falköping | Residential | 2,169 |
| Two | 1 | Muraren 15 | Falköping | Residential | 1,551 |
| Two | 1 | Muraren 3 | Falköping | Residential | 960 |
| Two | 1 | Muraren 4 | Falköping | Residential | 745 |
| Two | 1 | Muraren 5 | Falköping | Residential | 787 |
| Two | 1 | Oxeln 1 | Falköping | Residential | 1,382 |
| Two | 1 | Sankt Olof 18 | Falköping | Residential | 2,031 |
| Two | 1 | Spettet 1 | Falköping | Residential | 1,362 |
| Two | 1 | Svanen 24 | Falköping | Residential | 1,099 |
| Two Two |
1 1 |
Trädgårdsmästaren 18 Trädgårdsmästaren 19 |
Falköping Falköping |
Residential Residential |
1,366 1,018 |
| Two | 1 | Trädgårdsmästaren 22 | Falköping | Residential | 2,020 |
| Two | 1 | Urd 3 | Falköping | Residential | 3,775 |
| Two | 1 | Vargen 1 | Falköping | Residential | 1,451 |
| Two | 1 | Vargen 2 | Falköping | Residential | 1,206 |
| Two | 1 | Vargen 3 | Falköping | Residential | 1,074 |
| Two | 1 | Vargen 4 | Falköping | Residential | 1,651 |
| Two | 1 | Vargen 5 | Falköping | Residential | 1,462 |
| Quarter | Number | Name of property | Property category | Lettable area, sq.m. | |
|---|---|---|---|---|---|
| Two | 2 | Vargen 6 & 8 | Falköping | Residential | 1,546 |
| Two | 1 | Vargen 7 | Falköping | Residential | 1,032 |
| Two | 1 | Vitsippan 2 | Falköping | Residential | 532 |
| Two | 1 | Muraren 6 | Falköping | Residential | 787 |
| Two | 0 | Hytten 1 | Falköping | Ground | – |
| Two | 0 | Sankt Olof 17 | Falköping | Ground | – |
| Two | 1 | Hammaren 7 | Falköping | Residential | 376 |
| Two | 1 | Sankt Tomas 13 | Falköping | Residential | 393 |
| Two | 1 | Sankt Jakob 14 | Falköping | Residential | 316 |
| Two | 1 | Sankt Jakob 18 | Falköping | Residential | 293 |
| Two | 1 | Sankt Johannes 18 | Falköping | Residential | 400 |
| Two | 1 | Sankt Staffan 13 | Falköping | Office | 2,415 |
| Two | 1 | Skogslinden 3 | Falköping | Residential | 740 |
| Two | 1 | Skogslinden 4 | Falköping | Residential | 730 |
| Two | 1 | Skalbaggen 5 | Falköping | Residential | 548 |
| Two | 1 | Skalbaggen 12 | Falköping | Residential | 540 |
| Two | 1 | Skalbaggen 11 | Falköping | Residential | 434 |
| Two | 1 | Flugsnapparen 1 | Falköping | Residential | 600 |
| Two | 1 | Flugsnapparen 2 | Falköping | Residential | 570 |
| Two | 1 | Flugsnapparen 6 | Falköping | Residential | 570 |
| Two | 1 | Ansgar 1 | Falköping | Residential | 2,278 |
| Two | 1 | Mejseln 4 | Falköping | Residential | 330 |
| Two | 1 | Göken 12 | Falköping | Residential | 423 |
| Two | 1 | S:t Lars 1 | Falköping | Residential | 879 |
| Two | 1 | Draken 8 | Falköping | Residential | 660 |
| Two | 1 | Gesällen 15 | Arboga | Residential | 5,714 |
| Two | 1 | Riskan 1 | Arboga | Residential | 4,200 |
| Two | 1 | Vilsta 9 | Arboga | Residential | 8,520 |
| Two | 1 | Vilsta 10 | Arboga | Residential | 8,371 |
| Two | 1 | Vilsta 21 | Arboga | Residential | 6,599 |
| Two | 1 | Hjulmakaren 25 | Arboga | Residential | 3,497 |
| Two | 1 | Ringsborg 1 | Arboga | Office | 1,488 |
| Two | 1 | Getingen 1 | Arboga | Residential | 9,535 |
| Two | 1 | Disa 1 | Köping | Residential | 1,586 |
| Two | 1 | Freja 3 | Köping | Residential | 1,740 |
| Two | 1 | Freja 11 | Köping | Residential | 2,681 |
| Two | 1 | Immanuel 2 | Köping | Residential | 11,524 |
| Two | 1 | Inga 1 | Köping | Residential | 2,724 |
| Two | 4 | Tunadal 6-8 | Köping | Residential | 9,546 |
| Two | 1 | Fenja 10 | Köping | Retail | 5,253 |
| Two | 1 | Gäddan 2 | Tranås | Residential | 3,402 |
| Two | 1 | Laxen 2 | Tranås | Residential | 9,840 |
| Two | 1 | Sutaren 2 | Tranås | Residential | 3,799 |
| Two | 1 | Forellen 3 | Tranås | Residential | 5,783 |
| Two | 1 | Forellen 5 | Tranås | Residential | 6,377 |
| Two | 1 | Öringen 1 | Tranås | Residential | 3,040 |
| Two | 1 | Forellen 4 | Tranås | Other | 400 |
| Two | 1 | Laxen 3 | Tranås | Retail | 575 |
| Two | 1 | Flundran 2 | Tranås | Other | – |
| Quarter | Number | Name of property | Property category | Lettable area, sq.m. | |
|---|---|---|---|---|---|
| Two | 1 | Kometen 10 | Tranås | Residential | 708 |
| Two | 1 | Norra Gyllenfors 9 | Tranås | Residential | 11,089 |
| Two | 1 | Oden 12 | Tranås | Residential | 3,687 |
| Two | 1 | Södra Framnäs 20 | Tranås | Residential | 402 |
| Two | 1 | Tigern 14 | Tranås | Residential | 736 |
| Two | 1 | Tjädern 23 | Tranås | Residential | 684 |
| Two | 1 | Tornsvalan 3 | Tranås | Residential | 2,083 |
| Two | 1 | Västermalm 23 | Tranås | Residential | 6,855 |
| Two | 1 | Falkberget 24 | Tranås | Residential | 1,087 |
| Two | 1 | Lejonet 5 | Tranås | Residential | 1,342 |
| Two | 1 | Nordstjärnan 7 | Tranås | Residential | 2,964 |
| Two | 1 | Lindkullen 11 | Tranås | Residential | 826 |
| Two | 1 | Lindkullen 12 | Tranås | Residential | 1,073 |
| Two | 1 | Lindkullen 13 | Tranås | Residential | 1,009 |
| Two | 1 | Bågskytten 4 | Tranås | Residential | 478 |
| Two | 1 | Bågskytten 5 | Tranås | Residential | 500 |
| Two | 1 | Kullen 1 | Tranås | Residential | 704 |
| Two | 1 | Jupiter 17 | Tranås | Residential | 476 |
| Two | 1 | Västerhejde Vibble 1:457 | Gotland | Residential | 7,861 |
| Two | 4 | Sato Oyj | Finland | Residential | 6,351 |
| Total | 109 | 242,446 |
Balder owns 50 % of a number of companies where Balder handles the management and administration, for further information, see page 50-52 in Balder's Annual Report for 2016. Balder's 50 %-owned associated companies are shown in the table below. Apart from the 50 %-owned associated companies, Balder owns 44.1 % (44.1) in Collector AB (publ), 31 % (31) of Tornet Bostadsproduktion AB, 25.5 % (28) of Brinova Fastigheter AB (publ), 49 % (49) in Sjaelsö Management ApS and 20 % (–) in SHH Bostad AB. For more information about these associated companies, see each companys website: Collector.se, Tornet.se, Brinova.se, Sjaelsoemanagement.dk and Shhbostad.se.
| Number of properties 2) |
Lettable area, sq.m. |
Rental value, SEKm |
Rental value, SEK/sq.m. |
Rental income, SEKm |
Economic occupancy rate, % |
Carrying amount, SEKm |
Carrying amount, % |
|
|---|---|---|---|---|---|---|---|---|
| Distributed by region | ||||||||
| Stockholm | 48 | 130,876 | 175 | 1,340 | 172 | 98 | 3,009 | 44 |
| Gothenburg | 15 | 84,811 | 89 | 1,052 | 83 | 93 | 1,157 | 17 |
| Öresund | 25 | 64,703 | 91 | 1,405 | 90 | 99 | 1,465 | 21 |
| Total | 88 | 280,390 | 356 | 1,268 | 345 | 97 | 5,631 | 82 |
| Project | 21 | 21 | 1,224 | 18 | ||||
| Total | 88 | 280,390 | 376 | 1,268 | 366 | 97 | 6,856 | 100 |
| Distributed by property category | ||||||||
| Residential | 27 | 45,453 | 70 | 1,537 | 69 | 99 | 1,581 | 23 |
| Office | 12 | 30,395 | 59 | 1,945 | 55 | 93 | 990 | 14 |
| Retail | 35 | 118,240 | 134 | 1,137 | 130 | 96 | 1,776 | 26 |
| Other | 14 | 86,302 | 92 | 1,067 | 92 | 99 | 1,284 | 19 |
| Total | 88 | 280,390 | 356 | 1,268 | 345 | 97 | 5,631 | 82 |
| Project | 21 | 21 | 1,224 | 18 | ||||
| Total | 88 | 280,390 | 376 | 1,268 | 366 | 97 | 6,856 | 100 |
1) The above table refers to the properties owned by the associated companies at the end of the period. Sold properties have been excluded and acquired properties have been estimated using full-year values. Other properties include hotel, educational, nursing, industrial and mixed-use properties. 2) Refers to the entire portfolio of the associated companies.
Balders participation in the balance sheets of 50 %-owned associated companies
| SEKm | 2017 30 June |
2016 30 June |
2016 31 Dec |
|---|---|---|---|
| Assets | |||
| Properties | 6,856 | 4,663 | 5,991 |
| Other assets | 56 | 54 | 54 |
| Cash and cash equivalents | 122 | 89 | 203 |
| Total assets | 7,034 | 4,806 | 6,248 |
| Shareholders' equity and liabilities | |||
| Equity/shareholder loan | 2,979 | 1,948 | 2,549 |
| Interest-bearing liabilities | 3,545 | 2,563 | 3,319 |
| Other liabilities | 509 | 294 | 379 |
| Total equity and liabilities | 7,034 | 4,806 | 6,248 |
Carrying amount distributed by property category including projects, %
In order to limit the risk of lower rental income and consequently a weakened occupancy rate, Balder strives to develop long-term relationships with the company's existing customers. Balder has a good diversification as regards the distribution between commercial properties and residential properties as well as the geographical distribution. The diversification strengthens the possibilities of maintaining a steady and satisfactory occupancy rate. Balder's commercial leases have an average lease term of 7.0 years (6.7). Balder's 10 largest leases represent 5.6 % (6.0) of total rental income and the average lease term amounts to 11.5 years (12.9).
No individual lease accounts for more than 0.8 % (0.9) of Balder's total rental income and no individual customer accounts for more than 4.4 % (2.5) of total rental income.
| Maturity date | Number of leases |
Proportion, % | Contracted rent, SEKm |
Proportion, % |
|---|---|---|---|---|
| 2017 | 602 | 22 | 83 | 1 |
| 2018 | 804 | 29 | 275 | 5 |
| 2019 | 494 | 18 | 282 | 5 |
| 2020 | 402 | 15 | 240 | 4 |
| 2021– | 439 | 16 | 1,167 | 20 |
| Total | 2,741 | 100 | 2,047 | 36 |
| Residential 1) | 35,563 | 3,655 | 63 | |
| Car park 1) | 4,854 | 16 | 0 | |
| Garage 1) | 3,686 | 42 | 1 | |
| Total | 46,844 | 5,760 | 100 |
1) Normally runs subject to a period of notice of three months.
Consolidated equity, including listed associated companies at market value, amounted to SEK 40,146m (30,740) on 30 June and the equity/assets ratio amounted to 39.9 % (35.5).
During the period, equity increased by comprehensive income for the period of SEK 4,080m (2,126), equity decreased by SEK –200m (–200) regarding dividends approved and entered as a liability to the preference shareholders, the change in market value of the holding in Collector AB (publ) and Brinova Fastigheter AB (publ) SEK –522m (–851), and by SEK –2m (–107) regarding transactions with non-controlling interests.
Balder's interest-bearing liabilities consists of revolving bilateral liabilities with several Nordic and European banks, outstanding bonds totalling SEK 20,536m (10,845) and outstanding commercial papers of SEK 3,906m (2,538). The secured liabilities in relation to total assets amounted to 28 % (44) on 30 June.
On 30 June, Balder had credit facilities of SEK 4,869m (4,767) of which SEK 4,869m (4,767) were unutilised. Apart
Fixed interest term
from these facilities, Balder had cash and cash equivalents, unutilised overdrafts and financial investments of SEK 3,578m (1,474). Balder aIso has credit facilities that fully covers future payments for ongoing construction projects. The interest rate refixing period and fixed credit term amounted to 3.2 years (3.0) and 4.9 years (4.0).
Balder's financial goals are an equity/assets ratio not less than 35 %, an interest coverage ratio not less than 2.0 times and a net debt to total assets ratio of not higher than 55 %. The net debt to total assets ratio is calculated as net interestbearing liabilities divided by total assets including listed associated companies at market value. As of 30 June, the equity/assets ratio was 39.9 % (35.5), the interest coverage ratio was 4.2 times (3.6) and the net debt to total assets ratio was 47.3 % (53.4).
| Financial targets | Target | Outcome 1) | |
|---|---|---|---|
| Equity/assets ratio, % | min. | 35.0 | 39.9 |
| Net debt to total assets, % | max. | 55.0 | 47.3 |
| Interest coverage ratio, times | min. | 2.0 | 4.2 |
1) Key ratios including listed associated companies at market value.
| Fixed interest term | ||||||
|---|---|---|---|---|---|---|
| Year | SEKm | Interest, % | Proportion, % | |||
| Within one year | 20,743 | 1.0 | 41 | |||
| 1–2 years | 1,107 | 3.2 | 2 | |||
| 2–3 years | 2,026 | 2.4 | 4 | |||
| 3–4 years | 10,388 | 2.9 | 20 | |||
| 4–5 years | 6,786 | 1.8 | 13 | |||
| > 5 years | 9,853 | 2.5 | 19 | |||
| Total Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1 Q2Q3 |
50,904 | 1.9 | 100 | |||
| Fixed credit term | ||||
|---|---|---|---|---|
| Year | SEKm | Proportion, % | ||
| Within one year | 8,637 | 17 | ||
| 1–2 years | 8,392 | 16 | ||
| 2–3 years | 4,920 | 10 | ||
| 3–4 years | 10,789 | 21 | ||
| 4–5 years | 6,124 | 12 | ||
| > 5 years | 12,042 | 24 | ||
| Total | 50,904 | 100 |
Balder has acquired four hotel properties in central Copenhagen for approximately 1,000 million SEK. The four properties are all located next to the central station in Copenhagen and are today run under the names Star, Mercur, Richmond and Plaza. Balder has signed long term lease agreements with Ligula Hospitality Group to operate all four hotels.
Balder has also agreed to acquire 56 % of Serena Properties AB, a company currently owned by Ratos, Varma Mutual Pension Insurance Company och Redito. Serena Properties owns 21 retail properties in Finland with a market value of approximately 200 million euros. The transaction is subject to approval from the EU competition authority and is expected to be completed in the third quarter of 2017.
After the end of the reporting period no other significant events has occured.
Balder receives fees from associated companies and Erik Selin Fastigheter AB for property and company management services. These fees amounted to SEK 21m (15) during the period and are reported in management and administrative costs. In addition, sevices are bought from Collector AB (publ).
Balder's operations, financial position and results may be affected by a number of risks and uncertainty factors. These are described in the Annual Report for 2016, on pages 53-55. Otherwise, no significant changes has been noted.
Balder applies IFRS (International Financial Reporting Standards) as adopted by the European Union in its consolidated accounts and the interpretations of these (IFRIC). This interim report is prepared in accordance with IAS 34, Interim Financial Reporting. In addition, relevant provisions of the Swedish Annual Accounts Act and the Swedish Securities Markets Act have also been applied. The parent company has prepared its financial statements in accordance with the Annual Accounts Act, the Securities Markets Act and RFR 2, Accounting for Legal Entities.
From 2017, hedge accounting for net investments in foreign currency is applied. Besides this the accounting policies and calculation methods applied are unchanged compared with the Annual Report for 2016.
With start from 2017, Balder has chosen to make a few reclassifications of profit/loss items in the consolidated statement of comprehensive income. Profit from property management from associated companies, changes in value and tax are now presented in italics directly below the result line Participation in profits of associated companies.
Changes in value in respect of properties and derivatives are reported in relation to each other, directly before profit before tax. Comparative figures have been adjusted. The changes are assessed, together with other supplementary information in the interim report, to facilitate the reader and provide a more accurate picture.
The Board of Directors and the CEO declare that the undersigned interim report provides a true and fair overview of the parent company's and the group's operations, financial position and performance as well as describing material risks and uncertainties facing the parent company and other companies in the group.
Gothenburg 22 August 2017
Christina Rogestam Chairman of the Board
Fredrik Svensson Sten Dunér Board member Board member
Anders Wennergren Erik Selin Board member Board member
and CEO
Fastighets AB Balder (publ), corp. id. no. 556525-6905
We have reviewed the condensed interim financial information (interim report) for Fastighets AB Balder (publ) as of 30 June 2017 and for the six-month period that ended on this date. The Board of Directors and the President are responsible for the preparation and presentation of this interim financial information in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.
We conducted our review in accordance with the International Standard on Review Engagements, ISRE 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review of the interim report consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review has a different focus and is substantially smaller in scope than an audit conducted in accordance with International Standards on Auditing (ISA) and other generally accepted auditing practices. The procedures performed in a review do not
enable us to obtain a level of assurance that would make us aware of all significant matters that might be identified in an audit. Accordingly, the conclusion expressed based on a review does not constitute the same level of assurance as a conclusion based on an audit.
Based on our review, nothing has come to our attention that give us reason to believe that the interim report, in all material respects, is not prepared for the Group in compliance with IAS 34 and the Swedish Annual Accounts Act and for the Parent Company in compliance with the Swedish Annual Accounts Act.
Gothenburg 22 August 2017 Öhrlings PricewaterhouseCoopers AB
Bengt Kron Authorised Public Accountant Auditor in charge
Helén Olsson Svärdström Authorised Public Accountant
1) Reduced by dividend for the preference share for the period. There is no dilutive effect as no potential shares arise.
| SEKm | 2017 30 June |
2016 30 June |
2016 31 Dec |
|---|---|---|---|
| Assets | |||
| Investment properties | 89,047 | 77,538 | 86,177 |
| Other fixed assets | 137 | 135 | 136 |
| Participations in associated companies | 4,071 | 2,687 | 3,362 |
| Other receivables | 1,465 | 1,575 | 1,357 |
| Cash and cash equivalents and financial investments | 3,228 | 1,124 | 1,592 |
| Total assets | 97,949 | 83,060 | 92,623 |
| Shareholders' equity and liabilities Shareholders' equity 1) |
37,357 | 27,318 | 33,479 |
| Deferred tax liability | 6,341 | 4,473 | 5,808 |
| Interest-bearing liabilities | 50,904 | 47,281 | 49,580 |
| Derivatives | 1,106 | 1,895 | 1,547 |
| Other liabilities | 2,242 | 2,092 | 2,209 |
| Total equity and liabilities | 97,949 | 83,060 | 92,623 |
| 1) Of which non-controlling interests | 5,911 | 5,029 | 5,540 |
| SEKm | 2017 30 June |
2016 30 June |
2016 31 Dec |
|---|---|---|---|
| Opening equity | 33,479 | 25,052 | 25,052 |
| Total comprehensive income for the period/year | 4,080 | 2,126 | 6,507 |
| Dividend preference shares, approved and entered as a liability | –200 | –200 | –200 |
| Share issue, after issue costs | – | – | 1,780 |
| Transactions with non-controlling interests | –2 | –107 | –107 |
| Dividend to non-controlling interests | – | –107 | –107 |
| Non-controlling interests arising on the acquisition of subsidiary | 1 | – | – |
| Non-controlling interests arising on share issue in subsidiary | – | 554 | 554 |
| Closing equity | 37,357 | 27,318 | 33,479 |
| SEKm | 2017 April-June |
2016 April-June |
2017 Jan-June |
2016 Jan-June |
2016 Jan-Dec |
|---|---|---|---|---|---|
| Net operating income | 1,000 | 896 | 1,977 | 1,710 | 3,679 |
| Other income/costs | 4 | 10 | 2 | 6 | 17 |
| Management and administrative costs | –137 | –123 | –268 | –236 | –488 |
| Reversal of depreciation | 6 | 4 | 12 | 7 | 26 |
| Adjustment item | – | –18 | – | –14 | – |
| Net financial items paid | –236 | –243 | –521 | –457 | –939 |
| Taxes paid | –129 | –25 | –153 | –78 | –160 |
| Cash flow from operating activities before change in working capital | 510 | 500 | 1,050 | 938 | 2,135 |
| Change in operating receivables | 209 | 63 | 36 | –51 | 176 |
| Change in operating liabilities | 75 | 146 | –84 | 345 | 580 |
| Cash flow from operating activities | 793 | 709 | 1,001 | 1,232 | 2,891 |
| Acquisition of properties | –773 | –3,523 | –1,074 | –3,853 | –7,648 |
| Acquisition/Divestment of property, plant and equipment | –8 | –6 | –13 | –21 | –41 |
| Purchase of financial investments | –1 | – | –4 | –30 | –145 |
| Acquisition of shares in associated companies | –100 | –158 | –163 | –214 | –493 |
| Investment in existing properties and projects | –920 | –594 | –1,592 | –1,079 | –1,843 |
| Transactions with non-controlling interests | – | – | –2 | –107 | –107 |
| Sale of properties | 2,300 | 37 | 2,745 | 489 | 1,651 |
| Sale of financial investments | 4 | 43 | 8 | 224 | 225 |
| Dividend paid from associated companies | 13 | – | 13 | – | – |
| Cash flow from investing activities | 515 | –4,200 | –83 | –4,590 | –8,401 |
| Share issue, after issue costs | – | – | – | – | 682 |
| Share issue in subsidiary, non-controlling interest's part of the share | |||||
| issue in Sato Oyj | – | 420 | – | 420 | 420 |
| Dividend paid for preference shares | –50 | –50 | –100 | –100 | –200 |
| Dividend paid to non-controlling interests | – | – | – | –107 | –107 |
| Changes in value derivatives, realised | – | – | –218 | – | – |
| Loans raised | 1,623 | 2,510 | 11,771 | 6,607 | 10,783 |
| Amortisation/redemption of loans sold properties/changes in | |||||
| overdraft facilities | –2,133 | –2,343 | –10,739 | –3,175 | –5,401 |
| Cash flow from financing activities | –560 | 537 | 714 | 3,645 | 6,177 |
| Cash flow for the period/year | 748 | –2,953 | 1,632 | 287 | 667 |
| Cash and cash equivalents at the start of the period/year | 2,171 | 3,860 | 1,287 | 620 | 620 |
| Cash and cash equivalents at the end of the period/year | 2,919 | 907 | 2,919 | 907 | 1,287 |
| Unutilised overdraft facilities | 350 | 350 | 350 | 350 | 350 |
| Financial investments | 309 | 218 | 309 | 218 | 305 |
| SEKm | 2017 Apr-June |
2016 Apr-June |
2017 Jan-June |
2016 Jan-June |
2016/2017 July-June |
2016 Jan-Dec |
|---|---|---|---|---|---|---|
| Rental income | ||||||
| Helsinki | 512 | 462 | 1,013 | 902 | 2,012 | 1,901 |
| Stockholm | 223 | 198 | 445 | 400 | 864 | 819 |
| Gothenburg | 272 | 246 | 571 | 494 | 1,107 | 1,030 |
| Öresund | 152 | 117 | 298 | 226 | 568 | 496 |
| East | 221 | 236 | 450 | 454 | 928 | 933 |
| North | 52 | 47 | 106 | 89 | 210 | 193 |
| Total | 1,433 | 1,307 | 2,882 | 2,565 | 5,690 | 5,373 |
| Net operating income | ||||||
| Helsinki | 321 | 311 | 630 | 595 | 1,259 | 1,224 |
| Stockholm | 174 | 150 | 335 | 303 | 642 | 610 |
| Gothenburg | 200 | 166 | 409 | 329 | 823 | 743 |
| Öresund | 119 | 96 | 229 | 182 | 452 | 405 |
| East | 149 | 142 | 303 | 247 | 622 | 566 |
| North | 37 | 31 | 71 | 53 | 148 | 130 |
| Total | 1,000 | 896 | 1,977 | 1,710 | 3,946 | 3,679 |
The group's internal reporting of operations is divided into the above segments. Total net operating income corresponds with reported net operating income in the income statement. The difference between net operating income of SEK 1,977m (1,710) and profit before tax of SEK 4,647m (2,439) consists of changes in value of properties of SEK 2,709m (1,651), other income/costs SEK 2m (6), management and administrative costs of SEK –268 m (–236), participations in profits of associated companies of SEK 561m (196), net financial items of SEK –468m (–460) and changes in value of derivatives of SEK 132m (–429).
| SEKm | 2017 30 June |
2016 30 June |
2016 31 Dec |
|---|---|---|---|
| Investment properties | |||
| Helsinki | 25,399 | 23,805 | 24,393 |
| Stockholm | 16,735 | 13,567 | 15,797 |
| Gothenburg | 17,620 | 14,204 | 17,053 |
| Öresund | 11,550 | 8,613 | 10,368 |
| East | 10,381 | 9,592 | 11,021 |
| North | 3,211 | 2,932 | 3,086 |
| Total carrying amount excluding project | 84,897 | 72,713 | 81,718 |
| Project | 4,151 | 4,824 | 4,459 |
| Total carrying amount including project | 89,047 | 77,538 | 86,177 |
The carrying amounts of properties have during the year changed by investments, aquisitions, divestments and unrealised changes in value, with SEK 1,006m in Helsinki region, SEK 938m in the Stockholm region, SEK 567m in the Gothenburg region, SEK 1,182m in the Öresund region, SEK 125m in the North region and by SEK –640m in the East region. The group's projects has decreased by SEK –308m. Sato's property portfolio is divided between the regions Helsinki and East. The real estate holdings in Norway is classified in the North region.
| 2017 Apr-June |
2016 Apr-June |
2017 Jan-June |
2016 Jan-June |
2016/2017 July-June |
2016 Jan-Dec |
|
|---|---|---|---|---|---|---|
| Share-related, ordinary shares 1) | ||||||
| Average number of shares, thousands | 180,000 | 172,397 | 180,000 | 172,397 | 177,386 | 173,598 |
| Profit after tax, SEK | 9.13 | 5.66 | 20.00 | 9.47 | 40.82 | 30.38 |
| Profit after tax excluding unrealised changes in value, SEK |
4.22 | 2.16 | 6.75 | 4.42 | 11.71 | 9.37 |
| Profit from property management, SEK | 3.42 | 2.88 | 6.65 | 5.31 | 13.23 | 11.89 |
| Net operating income, SEK | 4.43 | 4.14 | 8.80 | 7.91 | 17.90 | 17.02 |
| Outstanding number of shares, thousands | 180,000 | 172,397 | 180,000 | 172,397 | 180,000 | 180,000 |
| Shareholders' equity, SEK | 174.21 | 132.45 | 174.21 | 132.45 | 174.21 | 157.63 |
| Long-term net asset value (EPRA NAV), SEK | 215.59 | 169.39 | 215.59 | 169.39 | 215.59 | 198.49 |
| Share price on the closing date, SEK | 204.00 | 212.90 | 204.00 | 212.90 | 204.00 | 184.10 |
| Property-related | ||||||
| Rental value full-year, SEK/sq.m. | 1,650 | 1,554 | 1,650 | 1,554 | 1,650 | 1,583 |
| Rental income full-year, SEK/sq.m. | 1,575 | 1,475 | 1,575 | 1,475 | 1,575 | 1,507 |
| Economic occupancy rate, % | 96 | 95 | 96 | 95 | 96 | 95 |
| Surplus ratio, % | 70 | 69 | 69 | 67 | 69 | 68 |
| Carrying amount, SEK/sq.m. | 23,439 | 20,396 | 23,439 | 20,396 | 23,439 | 21,473 |
| Number of properties | 1,132 | 1,197 | 1,132 | 1,197 | 1,132 | 1,220 |
| Lettable area, sq.m. thousands | 3,622 | 3,565 | 3,622 | 3,565 | 3,622 | 3,806 |
| Profit from property management, attributable | ||||||
| to parent company shareholders, SEKm | 665 | 547 | 1,296 | 1,015 | 2,546 | 2,265 |
| Financial | ||||||
| Return on equity, ordinary share, % | 11.9 | 9.0 | 15.8 | 10.5 | 26.7 | 20.9 |
| Return on total assets, % | 4.8 | 5.1 | 7.0 | 5.5 | 11.6 | 9.9 |
| Interest coverage ratio, times | 4.4 | 3.6 | 4.2 | 3.6 | 4.0 | 3.7 |
| Equity/assets ratio, % | 39.9 | 35.5 | 39.9 | 35.5 | 39.9 | 38.3 |
| Debt/equity ratio, times | 1.3 | 1.5 | 1.3 | 1.5 | 1.3 | 1.3 |
| Net debt to total assets, % | 47.3 | 53.4 | 47.3 | 53.4 | 47.3 | 50.0 |
| 2017 Apr-June |
2016 Apr-June |
2017 Jan-June |
2016 Jan-June |
2016/2017 July-June |
2016 Jan-Dec |
|
|---|---|---|---|---|---|---|
| Share-related, ordinary shares 1) Shareholders' equity, SEK |
158.72 | 112.60 | 158.72 | 112.60 | 158.72 | 139.23 |
| Financial | ||||||
| Return on equity, ordinary share, % | 13.2 | 11.0 | 17.6 | 12.7 | 30.2 | 24.6 |
| Return on total assets, % | 5.0 | 5.3 | 7.3 | 5.8 | 12.0 | 10.4 |
| Equity/assets ratio, % | 38.1 | 32.9 | 38.1 | 32.9 | 38.1 | 36.1 |
| Debt/equity ratio, times | 1.4 | 1.7 | 1.4 | 1.7 | 1.4 | 1.5 |
| Net debt to total assets, % | 48.7 | 55.6 | 48.7 | 55.6 | 48.7 | 51.8 |
1) There is no dilutive effect as no potential shares arise.
| SEKm | 2017 Apr-June |
2016 Apr-June |
2017 Jan-June |
2016 Jan-June |
2016/2017 July-June |
2016 Jan-Dec |
|---|---|---|---|---|---|---|
| Net sales | 60 | 50 | 121 | 97 | 234 | 209 |
| Administrative costs | –65 | –56 | –128 | –109 | –242 | –224 |
| Operating profit | –5 | –7 | –6 | –12 | –9 | –14 |
| Profit from financial items | ||||||
| Dividends from subsidiaries | 909 | 1,430 | 909 | 1,430 | 909 | 1,430 |
| Other net financial items | 66 | 152 | 273 | 287 | 564 | 579 |
| – of which exchange rate differences | –142 | 1 | –153 | 2 | –153 | 1 |
| Changes in value of derivatives | 85 | –202 | 122 | –441 | 411 | –151 |
| Profit before appropriations and taxes | 1,055 | 1,374 | 1,297 | 1,265 | 1,876 | 1,843 |
| Appropriations | ||||||
| Group contributions paid | – | – | – | – | –568 | –568 |
| Profit before tax | 1,055 | 1,374 | 1,297 | 1,265 | 1,308 | 1,275 |
| Deferred tax | –32 | 12 | –85 | 37 | –86 | 36 |
| Net profit for the period/year 1) | 1,023 | 1,386 | 1,212 | 1,301 | 1,221 | 1,311 |
1) The parent company has no items reported in other comprehensive income and therefore total comprehensive income for the period/year is equal with net profit for the period/year.
| SEKm | 2017 30 June |
2016 30 June |
2016 31 Dec |
|---|---|---|---|
| Assets | |||
| Property, plant and equipment | 25 | 22 | 25 |
| Financial non-current assets | 5,060 | 3,582 | 5,087 |
| Receivables from group companies | 30,605 | 23,459 | 24,629 |
| Current receivables | 167 | 7 | 15 |
| Cash and cash equivalents and financial investments | 2,168 | 253 | 1,144 |
| Total assets | 38,025 | 27,323 | 30,900 |
| Shareholders' equity and liabilities | |||
| Shareholders' equity | 12,965 | 10,164 | 11,953 |
| Interest-bearing liabilities | 19,532 | 10,858 | 13,170 |
| Liabilities to group companies | 4,527 | 4,675 | 4,440 |
| Derivatives | 622 | 1,178 | 888 |
| Other liabilities | 379 | 448 | 449 |
| Total equity and liabilities | 38,025 | 27,323 | 30,900 |
Balder's shares are listed on Nasdaq Stockholm, Large Cap segment. Balder has two listed classes of shares, an ordinary Class B share and a preference share, which pays a dividend of SEK 5 per quarter. The company's market capitalisation as of 30 June amounted to SEK 40,207m (39,927).
The principal owner in Fastighets AB Balder is Erik Selin Fastigheter AB, which owns 34.5 % (35.9) of the capital and 48.2 % (49.5) of the votes. Foreign ownership amounts to approximately 21 % (23) of outstanding ordinary shares.
At the end of the period, approximately 14,000 shareholders (10,500) held ordinary shares. During the period, approximately 43 million shares were traded (36) which corresponds to an average of about 389,000 shares per trading day (290,000). The annual turnover rate amounted to 48 % (41). The price of the ordinary share was SEK 204.00 (212.90) on 30 June, corresponding to an increase of 11 % since year-end.
At the end of the period, approximately 9,300 shareholders (8,800) held preference shares. During the period approximately 1.5 million shares were traded (1.2), which corresponds to an average of about 12,400 shares per trading day (9,800). The annual turnover rate amounted to 30 % (24). On 30 June, the share price of the preference share was SEK 348.70 (322.40), corresponding to a rise of 8 % since year-end and a total return of 11 % since year-end.
On 30 June, the share capital in Balder amounted to SEK 190,000,000 distributed among 190,000,000 shares. Each share has a quota value of SEK 1.00, where of 11,229,432 shares are of Class A, 168,770,568 of Class B and 10,000,000 preference shares. The total number of outstanding shares amounts to 190,000,000. Each Class A share carries one vote and each Class B share and preference share carries one tenth of one vote.
The Annual General Meeting (AGM) of Fastighets AB Balder on 11 May 2017, resolved on the following matters, among others:
The AGM adopted the annual accounts for 2016 and resolved on a dividend of SEK 20 per preference share and that no dividend shall be declared to the ordinary share-holders.
The AGM discharged the Board and the CEO from liability and reelected the Board members Christina Rogestam, Erik Selin, Fredrik Svensson, Sten Dunér and Anders Wennergren according to the nomination committee's proposal. Christina Rogestam was selected as Chairman.
The meeting resolved to authorise the Board, during the period until the next Annual General Meeting, on one or more occasion, to be able to decide on a new issue of not more than 5,000,000 preference shares and/or shares of Class B corresponding to not more than 10 % of the existing share capital at the time of the AGM 2017.
The AGM further resolved during the period until the next Annual General Meeting, to authorise the Board on one or more occasion to decide on acquisition of own shares of Class B but that the combined holdings of own shares in the company may not exceed 10 % of all shares in the company.
| EPRA key ratios | 2017 Jan-June |
2016 Jan-June |
2016 Jan-Dec |
|---|---|---|---|
| EPRA NAV (Long-term net asset value), SEKm | 38,805 | 29,202 | 35,728 |
| EPRA NAV, SEK per share | 215.59 | 169.39 | 198.49 |
| EPRA Vacancy rate | 4 | 5 | 5 |
| Total | 11,229,432 | 168,770,568 | 10,000,000 | 190,000,000 | 100 | 100 |
|---|---|---|---|---|---|---|
| Other | 4,212 | 52,195,239 | 9,896,091 | 62,095,542 | 32.7 | 21.3 |
| Anders Hedin Invest AB | – | 2,500,000 | – | 2,500,000 | 1.3 | 0.9 |
| Lannebo fonder | – | 3,084,391 | – | 3,084,391 | 1.6 | 1.1 |
| Second Swedish National Pension Fund | – | 3,451,035 | – | 3,451,035 | 1.8 | 1.2 |
| SEB Investment Management | – | 4,767,209 | – | 4,767,209 | 2.5 | 1.6 |
| Handelsbanken Fonder AB | – | 6,530,927 | – | 6,530,927 | 3.4 | 2.2 |
| Länsförsäkringar fondförvaltning AB | – | 7,425,935 | – | 7,425,935 | 3.9 | 2.6 |
| JPM Chase | – | 7,548,107 | 103,409 | 7,651,516 | 4.0 | 2.6 |
| Swedbank Robur fonder | – | 10,514,285 | – | 10,514,285 | 5.5 | 3.6 |
| Arvid Svensson Invest AB | 2,915,892 | 13,542,540 | – | 16,458,432 | 8.7 | 14.7 |
| Erik Selin via company | 8,309,328 | 57,210,900 | 500 | 65,520,728 | 34.5 | 48.2 |
| Owner | A ordinary shares | B ordinary shares | Preference shares | Total number of shares |
Capital, % | Votes, % |
| Final day of trading incl. right to payment of dividend | 6 October 2017 |
|---|---|
| Record day for payment of dividend | 10 October 2017 |
| Expected day of payment from Euroclear | 13 October 2017 |
| Final day of trading incl. right to payment of dividend | 8 January 2018 |
| Record day for payment of dividend | 10 January 2018 |
| Expected day of payment from Euroclear | 15 January 2018 |
| Final day of trading incl. right to payment of dividend | 6 April 2018 |
| Record day for payment of dividend | 10 April 2018 |
| Expected day of payment from Euroclear | 13 April 2018 |
The company presents a number of financial metrics in the interim report that are not defined according to IFRS (so-called Alternative Performance Measures according to ESMA's guidelines). These performance measures provide valuable supplementary information to investors, the company's management and other stakeholders since they facilitate effective evaluation and analysis of the company's financial position and performance. These alternative performance measures are not always comparable with measures used by other companies and shall therefore be considered as a complement to measures defined according to IFRS. Fastighets AB Balder will apply these alternative performance measures consistently over time. The key ratios are alternative performance measures according to ESMA's guidelines unless otherwise stated. A description follows below of how Fastighets AB Balder's key ratio's are defined and calculated.
Profit after tax reduced by preference share dividend for the period in relation to average equity after deduction of the preference capital. The values were converted to a full-year basis in the interim accounts without taking account of seasonal variations that normally arise in the operations with the exception of changes in value.
Profit before tax with addition of net financial items in relation to average balance sheet total. The values were converted to a full-year basis in the interim accounts without taking account of seasonal variations that normally arise in the operations with the exception of changes in value.
Profit before tax with reversal of changes in value and other income/costs. Reversal of changes in value and tax as regards participation in profits of associated companies also takes place. When calculating profit from property management before tax attributable to parent company shareholders, the profit from property management is also reduced with the non-controlling interests' share.
Interest-bearing liabilities less cash and cash equivalents and financial investments in relation to total assets.
Profit before tax with reversal of net financial items, changes in value and changes in value and tax as regards participation in profits of associated companies, in relation to net financial items.
Interest-bearing liabilities in relation to shareholders' equity.
Shareholders' equity including non-controlling interests in relation to the balance sheet total at the end of the year.
Shareholders' equity in relation to the number of outstanding ordinary shares at the end of the year after deduction of the preference capital.
Shareholders equity' per preference share is equivalent to the average subscription price of the preference share of SEK 287.70 per share.
Profit from property management reduced by preference share dividend for the period divided by the average number of outstanding ordinary shares.
The number of outstanding shares at the start of the period, adjusted by the number of shares issued during the period weighted by the number of days that the shares have been outstanding in relation to the total number of days during the year.
Equity per ordinary share with reversal of interest rate derivatives and deferred tax according to balance sheet.
Profit attributable to the average number of ordinary shares after consideration of the preference share dividend for the period.
Estimated net operating income on an annual basis in relation to the fair value of the properties at the end of the year.
Rental income less property costs.
Contracted rent for leases which are running at the end of the period in relation to rental value.
Classified according to the principal use of the property. The break-down is made into office, retail, residential and other properties. Other properties include hotel, educational, care, industrial/warehouse and mixed-use properties. The property category is determined by what the largest part of the property is used for.
This item includes direct property costs, such as operating expenses, utility expenses, maintenance, ground rent and property tax.
Contracted rent and estimated market rent for vacant premises.
Net operating income in relation to rental income.
1) The key ratio is operational and is not considered to be a alternative key ratio according to ESMA's guidelines.
The information in this report is such that Fastighets AB Balder (publ) is obliged to disclose according to the Swedish Securities Markets Act and/or the Swedish Financial Instruments Trading Act. This information has been published at 2.00 p.m. on August 22, 2017.
For additional information, please contact CEO Erik Selin, telephone +46 706 074 790 or CFO Magnus Björndahl, telephone +46 735 582 929.
Overall information about the company's operations, board of directors and management, financial reporting and press releases, may be found on Balder's website, balder.se.
Interim report Jan-Sep 2017 2 November 2017 Year-end report 2017 22 February 2018
| Head office | Parkgatan 49 · Box 53 121 · 411 39 Gothenburg · Tel: +46 31-10 95 70 · Fax: +46 31-10 95 99 |
|---|---|
| Letting | Tel: +46 20-151 151 |
| Customer service Tel: +46 774-49 49 49 |
| Gothenburg | Parkgatan 49 · Box 53 121 · 411 39 Gothenburg · Tel: +46 31-10 95 70 |
|---|---|
| Timmervägen 9A · 541 64 Skövde · Tel: +46 500-47 88 50 | |
| Helsinki | Panuntie 4 · PO Box 401 · 00610 Helsinki · Tel: +358-201 34 4000 |
| North | Forskarvägen 27 · 804 23 Gävle · Tel: +46 26-54 55 80 |
| Sandbäcksgatan 5 · 653 40 Karlstad · Tel: +46 54-14 81 80 | |
| Affärsgatan 4 D · 862 31 Kvissleby · Tel: +46 60-55 47 10 | |
| Stockholm | Drottninggatan 108 · 113 60 Stockholm · Tel: +46 8-73 53 770 |
| Vårby Allé 14 · 143 40 Vårby · Tel: +46 8-73 53 770 | |
| Öresund | Kalendegatan 26 · 211 35 Malmö · Tel: +46 40-600 96 50 |
| Esplanaden 15 · 265 34 Åstorp · Tel: +46 42-569 40 | |
| Gustav Adolfs Torg 8 · 252 25 Helsingborg · Tel: +46 42-17 21 30 | |
| Stockholmsgade 41 · 2100 København · Tel: +45-70 30 26 00 | |
| East | Hospitalsgatan 11 · 602 27 Norrköping · Tel: +46 11-15 88 90 |
| Rönnbergagatan 10 · 723 46 Västerås · Tel: +46 21-14 90 98 |
This report is a translation of the Swedish Interim Report January-June 2017. In the event of any disparities between this report and the Swedish version, the latter will have priority.
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