Annual Report • Feb 9, 2017
Annual Report
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Platzer is one of the largest, and leading, commercial property companies in Gothenburg, primarily in office property. The company owns and develops 70 properties with a total area of 800,000 sq. m. 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. At the end of the period, Platzer had 64 employees.
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 performance and Platzer has held ISO 14001 certification since 2009.
Platzer achieved its financial target for net asset value per share of SEK 40 already in 2016, so the Board of Directors has established new financial objectives for the Company.
Our new targets are:
For outcome, see Key Performance Indicators on page 14 and Key Performance Indicators per share on page 27.
A continued strong market in Gothenburg, our largest acquisition to date and improved income from property management. Also continued large investments in the development of existing properties, a large number of environmental certifications and a breakthrough for Green leases. 2016 became a very good year for Platzer.
We continued to see a good return on the strategic journey we embarked on in 2008. Having initially focused on management and acquisitions of properties, our plan since 2012 has been for an ever increasing proportion of our growth to be derived from our development projects. In line with our expansion, it has become increasingly important for us to take an active role in the development of the city districts where we have activities.
Gothenburg is in an exciting phase of development. The transition from a traditional industrial city to a knowledge society firmly rooted in an industrial base is becoming more marked year by year. There is a clear trend towards central locations or hubs with access to good communications. At the same time, the economy is strong, fuelled by a booming export industry. For the second year running, unemployment is lower than in both Stockholm and Malmö.
Together with low interest rates, rising property prices, falling investment yields and a clear intention from the politicians to develop the city, this means that conditions are good for a property company such as ours.
Our increasing focus on investing in our own development projects should be viewed against this background. In 2016, investments increased by 45% to more than SEK 500 million. With an estimated annual growth of SEK 1.5 billion, this means 1/3 of growth is attributable to these investments. The largest project currently underway is our office building at Gamlestads torg. That our chosen path has been a success is also evident in our results. In 2016, our operating surplus increased by 16% and income from property management grew by 21%, while the surplus ratio remained at 74%. This also shows that we are able to ensure that our property management opera-
tions remain efficient and profitable, at the same time as we continue to grow through both transactions and property and project development.
At the time of our stock market listing in 2013, we set a target of net asset value per share of SEK 40 by the end of 2017. This meant that we needed to generate growth of at least 10% a year in the period 2014-2017. We achieved this target already by the first half of 2016.
That we were able to achieve our target early is due to the fact that we have conducted our project development activities successfully and that we own properties in locations where market yields have fallen. This has resulted in our properties increasing in value, which in turn has meant that our net asset value has increased by around 15% per year.
We acquired 12 properties and disposed of two properties during the year. In all, we conducted transactions worth SEK 3.4 billion, which means we accounted for around 25% of the total commercial transaction volume in the Gothenburg area. The largest transaction was the acquisition of properties in Arendal, Torslanda and Säve from Volvo. The value of the properties was approx. SEK 2.8 billion and the acquired properties are estimated to have an annual rental value of SEK 300 million. The total area comprises around 335,000 sq. m. of lettable area, as well as land.
In addition to this deal, we acquired our first property in Lindholmen, which is one of our designated growth areas. We also acquired the student union building "Studenternas hus" in Lorensberg, where we will be developing student housing together with Gothenburg University.
We are a driving force in many exciting districts in the Gothenburg area – for instance, Backaplan, Gamlestaden, Gårda, Södra Änggården and Gullbergsvass. We received a decision on the go-ahead for a detailed development plan for Södra Änggården in 2016. Together with the City Planning Department we are developing the area with the aim of transforming it into an attractive mixed-use development with a large proportion of housing. Our share comprises around 120,000 sq. m. and is part of the Municipality of Gothenburg's housing project BoStad 2021, which means a detailed development plan for the area is likely to have been completed not later than the beginning of 2018. Green leases account for 30% of rental value
At the end of 2016, 75% of our properties had been certified according to one of the leading environmental certification systems. We are therefore getting closer to our target of all our properties being environmentally certified. At the same time, we are increasingly entering into Green leases (leases with green clauses/annexes) in order to work with our tenants on reducing the environmental impact of our properties. We achieved a breakthrough in these efforts in 2016 and some 30% of the rental value in our portfolio currently comprises Green annexes.
In order to complete the deal with Volvo, we needed to raise financing of around SEK 1.1 billion. We used cash and cash equivalents of SEK 400 million. In order to raise the remaining amount of just over SEK 700 million, we turned to our existing shareholders through a rights issue. The issue was 100% subscribed.
The funding of the transaction did not have a major impact on our Key Performance Indicators. Both our loan-to-value ratio and our equity/assets ratio remain well below our financial targets. During the year we increased our capital markets borrowing with yet another Green bond via SFF and we added another major bank to our creditors. On the whole, we end 2016 in a financially stable position, able to finance continued growth in the company through both property acquisitions and property and project development.
I take a positive view of the future. Without issuing a forecast, our earning capacity points to significantly improved results in 2017. Our project portfolio is good and there are many interesting opportunities within urban development. As the CEO I am never fully satisfied, however, I can always see potential for improvement in terms of lowering the vacancy ratio, running projects more efficiently, continuing to find new business opportunities and recruiting the right staff. Nonetheless, our prospects overall are very good.
P-G Persson CEO
Comparative values for income statement items refer to the corresponding period in the previous year and for balance sheet items as at 31/12/2015.
Income from property management in 2016 improved by 21% and amounted to SEK 322 million (266). The improvement in results was partly due to a larger property portfolio compared with the same period in the previous year, and partly to the fact that completed development projects became occupied, while lettings in existing properties increased. Changes in the value of properties in the year amounted to SEK 450 million (510), while changes in the value of financial instruments totalled SEK -137 million (64). Profit after tax for the year amounted to SEK 500 million (664).
Rental income for the financial year amounted to SEK 687 million (589). This corresponds to an increase of 17%, which was primarily attributable to a larger property portfolio, new lettings and completed development projects. Estimated annual rental income from existing lease agreements as at the balance sheet date was SEK 990 million (664), a substantial increase that was primarily due to the acquisition from Volvo with effect from 15 December 2016. The economic occupancy rate for the period was 94% (91), having recovered compared with 2015 thanks to the completion of major development projects during the year.
Property costs for the year amounted to SEK -181 million (-152), with the increase primarily due to the larger property portfolio and a substantial rise in the property tax this year. In terms of our financial results, this is largely compensated for by the fact that our tenants pay their share of the actual property tax. Property operating expenses and maintenance costs are subject to seasonal variations, with costs in the first and fourth quarter normally higher than in the second and third quarters.
The operating surplus rose by 16% to SEK 506 million in 2016 (437).
The surplus ratio remained at a high and stable level, and was 74% for the period (74). The investment yield for the properties was 4.9% (4.8). The acquisition from Volvo, which was completed on 15 December 2016, has had only a marginal impact on the investment yield.
Central administration costs for the year amounted to SEK -39 million (-35). The increase was primarily due to an increase in the number of staff, with 64 persons at year-end, up from 54 in the previous year. The ongoing share incentive programme weighed down the result for the year by SEK -3 million (-1).
Net financial items for 2016 amounted to SEK -145 million (-136). The increase in costs was entirely due to a larger property portfolio and therefore an increase in borrowing. Market rates were slightly lower in 2016 compared with 2015 (the margins are slightly higher). At the end of the year, the average interest rate, including the effects of signed derivative instruments, was 2.33% (2.37).
Tax expense for the financial year amounted to SEK -135 million (-176), of which SEK -95 million (SEK -158) comprised deferred tax, while current tax amounted to SEK -40 million (-18). Property disposals, which give rise to realised capital gains/ losses, are normally conducted as company divestments. This means the gains are exempt from tax, which also had an impact on tax for the year. The sale of Gullbergsvass 703:53 was conducted as a property disposal and the impact on current tax was SEK - 24 million.
Net investments in property in 2016 amounted to SEK 3,362 million (845). Acquisitions of properties amounted to SEK 3,112 million (745) and sales amounted to SEK 252 m (259). Investments in existing properties amounted to SEK 502 million (359). In order to implement the acquisition from Volvo, which involved properties worth SEK 2,765 million, the Company carried out a new share issue in the fourth quarter which after deductions of issue expenses raised SEK 705 million in cash flow. Cash flow for the year, after paying dividends of SEK 96 million to shareholders, totalled SEK -95 million (131). Cash and cash equivalents stood at SEK 132 million (227) as at the balance sheet date. In addition to cash and cash equivalents, as at 31 December 2016 the company had unutilised loan commitments of SEK 564 million (210), including building credit of SEK 330 million, and an unutilised overdraft facility of SEK 50 million (50).
Properties were recognised at fair value of SEK 13,615 million (9,784), which is 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. In addition, Platzer commissions an external valuation of the property portfolio every year in order to ensure the quality of the internal valuation. The valuation normally covers around 30% of the portfolio, but this year the valuation covered all the properties in the portfolio as part of the preparation of the rights issue prospectus. The date of the external valuation was 30 September and it showed a value of SEK 10,880 million, which was 0.6 per cent above the internal valuation as at the same date. The investment properties are valued within level 3 in the IFRS 13 fair value hierarchy.
The internal property valuation for 2016 showed a change in the value of investment properties of SEK 450 million (510). The majority of the change in value over the year was the result of lower required yields in the market. The average required investment yield based on the valuation as at the balance sheet date was 5.7%, up from 5.5% at end-December in the previous year, mainly due to the acquisition from Volvo.
With effect from 15 December 2016, the Company acquired 10 properties from Volvo with a lettable floor area of 335,000 sq. m., as well as land, in Arendal, Torslanda and Säve. The site area comprises 3,675,000 sq. m. The deal valued the properties at SEK 2,765 million and the annual rental value is around SEK 300 million. The properties Lindholmen 30:2 and Lorensberg 62:1 were acquired earlier in the year, the former by means of a company acquisition. The property Gårda 8:2 was disposed of in March through a company disposal. The sale of Gullbergsvass 703:53, worth SEK 210 million, was completed as at 3 October 2016; the sale had been agreed in 2015 which meant the disposal did not affect changes in the value of property in the financial year.
Investments in existing properties in 2016 amounted to SEK 521 million (359), with the largest individual investments comprising the new build projects Hårddisken 1 in Mölndal and Gamlestaden 740:132, as well as the conversion project Livered 1:329 in Mölndal.
The group's equity as at year-end totalled SEK 4,703 million (3,592) following the payment of a dividend of SEK 96 million (SEK 1 per share) in the second quarter. The new share issue carried out in December raised net equity of SEK 708 million after deductions of issue costs of SEK 10 million after tax.
Equity per share as at the balance sheet date stood at SEK 38.90 (37.05), while the long-term net asset value per share (EPRA NAV) was SEK 45.72 (43.16). EPRA NAV was up by 13%, adjusted for the share issue carried out during the year. Net asset value, which had been Platzer's financial target for the end of 2017, was SEK 41.06 (38.62). The target was SEK 40 per share, which adjusted for the share issue corresponds to SEK 38.00 per share. The target was achieved in 2016, which is why new financial targets were established in the autumn; see page 2 for further information. The equity/assets ratio as at the balance sheet date was 34% (35).
As at the balance sheet date, interest-bearing liabilities amounted to SEK 7,989 million (5,690), which corresponded to a loan-to-value ratio of 59% (58). With effect from 31/12/2016, liabilities will be divided into current and non-current liabilities in the balance sheet, a corresponding division of these items has been done as at 31/12/2015. Current liabilities refer to loans that will be renegotiated in 2017. Debt financing primarily comprises bank loans secured by mortgages on property. In addition, Platzer borrowed SEK 800 million through two Green bond issues via SFF, one of which, a refinancing of an existing bank loan, was implemented in the fourth quarter. In 2016, Platzer obtained debt financing for property acquisitions corresponding to a loan-tovalue ratio of 60-65% and also agreed refinancing of properties that have undergone unfinanced property or project development, with total financing amounting to SEK 2,572 million. In the financial year, Platzer also repaid loans in connection with the sale of the properties Gårda 8:2 and Gullbergsvass 703:53. Overall, the amount of interest-bearing liabilities increased by a total of SEK 2,299 million.
The average fixed interest term, including the effect of derivatives contracts, was 3.7 years (4.0) as at 31 December 2016. The average loan term was 2.0 years (1.9).
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 in the income statement without applying hedge accounting. The market value as at 31 December 2016 was SEK -329 million (-192), which corresponded to a change in value of SEK -137 million for the year (64). 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.
In the month of June, Platzer entered into interest rate swaps with forward start dates worth a total of SEK 600 million. Taking these interest rate swaps into account, the effective fixed interest term is just over 3.8 years.
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 almost exclusively variable and in line with market rates.
The company had 64 employees as at 31 December 2016 (54). Platzer's property portfolio is organised into market segments with responsibility for daily operation, management and development of properties. There were two segments in 2016 but this was increased to three segments towards the end of the year in connection with the acquisition of the property portfolio from Volvo. The market segments are supported by two specialist units: Project development, which is responsible for project development and project management, and Lettings. Platzer's Group and
staff functions comprise the CEO, business development, finance, HR, communication and sustainability/procurement.
Rental income for the fourth quarter amounted to SEK 195 million (160), an increase of 22%. In the same quarter, the operating surplus increased by
22% to SEK 142 million (116). Income from property management improved by 27% to SEK 90 million (71). Changes in the value of investment properties amounted to SEK 199 million (205) in the quarter, while changes in the value of financial instruments boosted results by SEK 114 million (63). Profit after tax amounted to SEK 317 million (273).
Significant events during the fourth quarter:
No significant events have taken place after the turn of the year.
The parent company does not own any properties of its own, and instead manages certain group functions regarding management and financing. Parent company revenue is solely derived from invoicing 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 period and they are described in detail in the Annual Report for 2015 on pages 48-49, 53-54 and 68-69.
The company's ongoing transactions with related parties are described in the Annual Report for 2015, page 81. There are no significant transactions with related parties apart from these continuing agreements, and this situation did not change during the year.
Platzer prepares its consolidated financial statements in accordance with IFRS (International Financial Reporting Standards) as adopted by the EU. The same accounting and valuation principles have been applied as in the most recent annual
report. New or revised IFRS standards that have come into force in 2016 have not had any material effect on the Group's financial statements. The interim report has been prepared in accordance with IAS 34, Interim Financial Reporting. The parent company applies the Annual Accounts Act and RFR2.
The Board of Directors proposes to the Annual General Meeting that a dividend of SEK 1.10 per share be paid (1.00).
Gothenburg, 09/02/2017
Platzer Fastigheter Holding AB (publ)
P-G Persson CEO
This year-end report has not been reviewed by the company's auditors.
CONDENSED
| SEK million | 2016 Oct-Dec |
2015 Oct-Dec |
2016 Jan-Dec |
2015 Jan-Dec |
|---|---|---|---|---|
| Rental income | 195 | 160 | 687 | 589 |
| Property costs | - 53 | -44 | -181 | - 152 |
| Operating surplus | 142 | 116 | 506 | 437 |
| Central administration | - 14 | -11 | -39 | - 35 |
| Net financial items | - 38 | -34 | -145 | - 136 |
| Income from property management | 90 | 71 | 322 | 266 |
| Change in value, investment properties | 199 | 205 | 450 | 510 |
| Change in value, financial instruments | 114 | 63 | -137 | 64 |
| Profit before tax | 403 | 339 | 635 | 840 |
| Tax on profit for the period | - 86 | -66 | -135 | - 176 |
| Profit for the period 1) | 317 | 273 | 500 | 664 |
| Profit for the period attributable to: | ||||
| Parent company's shareholders | 318 | 262 | 494 | 653 |
| Non-controlling interests | - 1 | 11 | 6 | 11 |
| Earnings per share 2) | 2.95 | 2.74 | 4.92 | 6.81 |
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 savings scheme is completed.
CONDENSED
| SEK million | 31/12/2016 | 31/12/2015 |
|---|---|---|
| Assets | ||
| Investment properties | 13,615 | 9,784 |
| Other non-current assets | 6 | 5 |
| Non-current financial assets | 45 | 60 |
| Current assets | 67 | 63 |
| Cash and cash equivalents | 132 | 227 |
| Total assets | 13,865 | 10,139 |
| Equity and liabilities | ||
| Equity | 4,703 | 3,592 |
| Deferred tax liability | 493 | 399 |
| Non-current, interest-bearing liabilities | 5,764 | 4,296 |
| Other non-current liabilities | 358 | 224 |
| Non-current, interest-bearing liabilities | 2,225 | 1,394 |
| Other non-current liabilities | 322 | 234 |
| Total equity and liabilities | 13,865 | 10,139 |
| Pledged assets | 6,682 | 5,798 |
| Contingent liabilities | 8 | 55 |
CONDENSED
| 2016 | 2015 | |
|---|---|---|
| SEK million | Jan-Dec | Jan-Dec |
| Equity attributable to parent company's shareholders | ||
| At beginning of period | 3,548 | 2,966 |
| New issue | 708 | 0 |
| Share buy-back | - | 0 |
| Reversal, share saving scheme | 2 | 1 |
| Comprehensive income for the period | 494 | 653 |
| Dividend | -96 | -72 |
| At end of period | 4,656 | 3,548 |
| Equity attributable to non-controlling interests | ||
| At beginning of period | 44 | - |
| Consolidation of subsidiary | 1 | 33 |
| Withdrawals | -4 | - |
| Comprehensive income for the period | 6 | 11 |
| At end of period | 47 | 44 |
| Total equity | 4,703 | 3,592 |
| 2016 | 2015 | |
|---|---|---|
| SEK million | Jan-Dec | Jan-Dec |
| Value of properties, opening balance | 9,784 | 8,343 |
| Investments in existing properties | 521 | 359 |
| Property acquisitions | 3,112 | 745 |
| Property sales | -252 | -259 |
| Consolidation of subsidiary | - | 86 |
| Change in value | 450 | 510 |
| Value of properties, closing balance | 13,615 | 9,784 |
CONDENSED
| SEK million | 2016 Oct-Dec |
2015 Oct-Dec |
2016 Jan-Dec |
2015 Jan-Dec |
|---|---|---|---|---|
| Operating activities | ||||
| Operating surplus | 142 | 116 | 506 | 437 |
| Central administration | -13 | -9 | -35 | -32 |
| Net financial items | -37 | -34 | -144 | -136 |
| Income tax | -2 | 5 | -20 | -14 |
| Cash flow from operating activities before changes in | ||||
| working capital | 90 | 78 | 307 | 255 |
| Change in current receivables | -13 | -8 | - | -30 |
| Change in current liabilities | 68 | 47 | 60 | 68 |
| Cash flow from operating activities | 145 | 117 | 367 | 293 |
| Investing activities | ||||
| Investments in existing investment properties | -114 | -77 | -502 | -359 |
| Acquisitions of investment properties | -2,675 | -6 | -3,112 | -745 |
| Sales of investment properties | 210 | 81 | 252 | 259 |
| Consolidation of subsidiary | - | -86 | - | -86 |
| Other investments | -1 | - | -2 | - |
| Cash flow from investing activities | -2,580 | -88 | -3,364 | -931 |
| Financing activities | ||||
| Change in interest-bearing liabilities | 1,739 | 49 | 2,299 | 836 |
| Changes in non-current receivables | -6 | -33 | -6 | -33 |
| Changes in non-current liabilities | - | 5 | - | 5 |
| Dividend | - | - | -96 | -72 |
| Consolidation of subsidiary | - | 33 | - | 33 |
| New issue | 705 | - | 705 | - |
| Cash flow from financing activities | 2,438 | 54 | 2,902 | 769 |
| Cash flow for the period | 3 | 83 | -95 | 131 |
| Cash and cash equivalents at beginning of period | 129 | 144 | 227 | 96 |
| Cash and cash equivalents at end of period | 132 | 227 | 132 | 227 |
The company has an unutilised overdraft facility of SEK 50 million (50) and unutilised loan commitments of SEK 564 million (210).
CONDENSED
| SEK million | 2016 Jan-Dec |
2015 Jan-Dec |
|---|---|---|
| Net sales | 16 | 12 |
| Operating expenses | - 16 | - 12 |
| Net financial items | - 86 | - 72 |
| Change in value, financial instruments | - 137 | 18 |
| Profit before tax and appropriations | - 223 | - 54 |
| Appropriations | 242 | 153 |
| Tax | - 7 | - 19 |
| Profit for the period 1) | 12 | 80 |
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 | 31/12/2016 | 31/12/2015 |
|---|---|---|
| Assets | ||
| Participations in Group companies | 1,809 | 1,053 |
| Other non-current financial assets (primarily financing of group companies) | 2,784 | 2,203 |
| Receivables from Group companies | 735 | 1,072 |
| Other current assets | 13 | 17 |
| Cash and cash equivalents | 0 | 8 |
| Total assets | 5,341 | 4,353 |
| Equity and liabilities | ||
| Equity | 2,544 | 1,917 |
| Untaxed reserves | 50 | 50 |
| Non-current liabilities | 2,702 | 2,352 |
| Current liabilities | 45 | 34 |
| Total equity and liabilities | 5,341 | 4,353 |
| Pledged assets | 2,371 | 2,138 |
| Contingent liabilities | 4,758 | 3,149 |
| 2016 Jan-Dec |
2015 Jan-Dec |
|
|---|---|---|
| Financial | ||
| Debt/equity ratio (multiple) | 1.7 | 1.6 |
| Interest coverage ratio (multiple) | 3.2 | 3.0 |
| Loan-to-value ratio, % | 59 | 58 |
| Equity/assets ratio, % | 34 | 35 |
| Return on equity, % | 12.0 | 20.0 |
| Property-related | ||
| Investment yield, % | 4.9 | 4.8 |
| Surplus ratio, % | 74 | 74 |
| Economic occupancy rate, % | 94 | 91 |
| Rental value, SEK/sq. m. | 1,538 | 1,532 |
| Lettable area, sq. m. (thousand) | 801 | 465 |
For definitions and calculations of Key Performance Indicators, please see pages 28-29.
| Investment properties | Project properties Total |
|||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Central Gothenburg |
South/West Gothenburg |
North/East Gothenburg |
Artosa Gothenburg |
|||||||||
| SEK million | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 |
| Rental income | 389 | 338 | 115 | 109 | 169 | 141 | 13 | - | 1 | 1 | 687 | 589 |
| Property costs | -93 | -78 | -36 | -37 | -48 | -36 | 3 | - | -1 | -1 | -181 | -152 |
| Operating surplus | 296 | 260 | 79 | 72 | 121 | 105 | 10 | - | 0 | 0 | 506 | 437 |
| Investment properties, fair value |
6,625 | 6,322 | 1,332 | 1,240 | 2,553 | 2,085 | 2,635 | - | 470 | 137 | 13,615 | 9,784 |
In the Group's internal reporting, activities are divided into the segments shown above. The division into geographical regions changed as of 1 January 2016 against a background of changes in the property portfolio, which has resulted in the regions South/ West Gothenburg and North/East Gothenburg replacing the previous division into West Gothenburg and Other Gothenburg respectively. South/West Gothenburg now includes Mölndal (previously in Other Gothenburg).
In December 2016, a portfolio of properties was acquired from Volvo and this portfolio now forms a separate segment known as Artosa, which comprises the areas Arendal, Torslanda and Säve.
The difference between the operating surplus of SEK 506 million (437) and profit before tax of SEK 635 million (840) consists of central administration costs of SEK -39 million (-35), net financial items of SEK -145 million (-136) and changes in the value of property and derivatives of SEK 313 million (574).
In the period the company acquired the properties Lorensberg 62:1 and Lindholmen 30:2, which belong to the segments Central Gothenburg and North/ East Gothenburg respectively. The properties Gårda 8:2 and Gullbergsvass 703:53, which belonged to the Central Gothenburg segment, were sold in the financial year.
| Loan maturity | |||||
|---|---|---|---|---|---|
| Year | Loan amount, SEK million |
maturity Share, % |
Average interest, % |
Loan amount, SEK million |
Share, % |
| 2017 | 3,649 | 46 | 1.56 | 2,225 | 28 |
| 2018 | 120 | 1 | 3.53 | 2,388 | 30 |
| 2019 | 700 | 9 | 1.32 | 1,771 | 22 |
| 2020 | 300 | 4 | 4.27 | 1,605 | 20 |
| 2021 | 670 | 8 | 3.10 | ||
| 2022 | 550 | 7 | 3.62 | ||
| 2023 | 100 | 1 | 3.62 | ||
| 2024 | 1,600 | 20 | 3.19 | ||
| 2025 | 300 | 4 | 2.63 | ||
| Total | 7,989 | 100 | 2.33 | 7,989 | 100 |
The table takes into account the effect of current derivatives contracts. In addition, there are interest rate swaps worth SEK 600 million with forward start dates.
| 2016 | 2015 | |||||||
|---|---|---|---|---|---|---|---|---|
| SEK million | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 |
| Rental income | 195 | 176 | 159 | 157 | 160 | 146 | 144 | 139 |
| Property costs | -53 | -46 | -37 | -45 | -44 | -35 | -34 | -39 |
| Operating surplus | 142 | 130 | 122 | 112 | 116 | 111 | 110 | 100 |
| Central administration | -14 | -5 | -9 | -11 | -11 | -8 | -8 | -8 |
| Net financial items | -38 | -39 | -34 | -34 | -34 | -34 | -35 | -33 |
| Income from property management | 90 | 86 | 79 | 67 | 71 | 69 | 67 | 59 |
| Change in value, investment properties | 199 | 79 | 95 | 77 | 205 | 196 | 49 | 60 |
| Change in value, financial instruments | 114 | -38 | -85 | -128 | 63 | -74 | 144 | -69 |
| Profit before tax | 403 | 127 | 89 | 16 | 339 | 191 | 260 | 50 |
| Tax on profit for the period | -86 | -28 | -20 | -1 | -66 | -42 | -57 | -11 |
| Profit for the period | 317 | 99 | 69 | 15 | 273 | 149 | 203 | 39 |
| Investment properties | 13,615 | 10,813 | 10,588 | 9,924 | 9,784 | 9,491 | 9,192 | 8,491 |
| Investment yield, % | 5.0 | 4.9 | 4.8 | 4.6 | 4.8 | 4.8 | 5.0 | 4.8 |
| Surplus ratio, % | 73 | 74 | 77 | 71 | 73 | 76 | 76 | 72 |
| Economic occupancy rate, % | 95 | 94 | 94 | 93 | 92 | 91 | 90 | 92 |
| Return on equity, % | 12.7 | 8.2 | 7.1 | 4.7 | 12.3 | 9.7 | 11.7 | 5.9 |
| Equity per share. SEK | 38.90 | 37.91 | 36.92 | 37.20 | 37.05 | 34.32 | 32.76 | 31.39 |
| Net asset value per share, SEK | 41.06 | 41.52 | 40.21 | 39.81 | 38.62 | 36.40 | 34.24 | 34.04 |
| Share price, SEK | 46.20 | 56.75 | 44.60 | 44.50 | 38.00 | 34.70 | 34.20 | 39.00 |
| Earnings after tax per share, SEK | 2.95 | 0.99 | 0.71 | 0.14 | 2.74 | 1.56 | 2.12 | 0.41 |
| Cash flow from operating activities per share, | ||||||||
| SEK | 1.35 | 1.41 | 0.37 | 0.55 | 1.22 | 0.85 | 0.18 | 0.82 |
| Number of properties |
Lettable area, sq. m. |
Fair value, SEK million |
Rental value, SEK million |
Economic occupancy rate, % |
Rental income, SEK million |
Operating surplus, SEK million |
Surplus ratio, % |
|
|---|---|---|---|---|---|---|---|---|
| INVESTMENT PROPERTIES | ||||||||
| Central Gothenburg | 22 | 206,515 | 6,625 | 411 | 95 | 391 | 302 | 77 |
| South/West Gothenburg | 9 | 66,275 | 1,006 | 92 | 95 | 87 | 61 | 70 |
| North/East Gothenburg | 9 | 142,880 | 2,553 | 205 | 95 | 194 | 141 | 73 |
| Artosa | 5 | 335,307 | 2,635 | 300 | 95 | 284 | 197 | 69 |
| Total investment properties |
45 | 750,977 | 12,819 | 1,008 | 95 | 956 | 701 | 73 |
| Project properties | 25 | 50,273 | 796 | 39 | 87 | 34 | 21 | |
| Total Platzer | 70 | 801,250 | 13,615 | 1,047 | 95 | 990 | 723 | 73 |
The summary comprises the property portfolio as at 1 January 2017 and provides a snapshot of the company's earning capacity, which is not a forecast.
We have opted to remove the subdivision between different kinds of property by geographical area because three areas - City centre, South/West and North/East - comprise almost exclusively office/ retail properties and there is no separate reporting of individual properties. The Artosa segment's property classification does not give rise to a need for division by property category.
With effect from 2017, project properties also include nine properties in Högsbo, which is shown in a note under the real estate inventory, pages 24-25. These comprise the project Södra Änggården, which is now out for consultation and where a detailed development plan is expected to be completed in 2017. The information in the table on rental value, income and operating surplus for project properties refers to the current situation, before project start.
The profit-related columns include valid lease agreements, including for future occupancy over the next six months, if occupancy relates to existing properties. Lease agreements with a later occupancy date or for properties currently under construction are not included. In addition to the above table, as at this date lease agreements have been signed for ongoing projects with a rental value of SEK 11 million for occupancy in the first quarter of 2017 onwards.
Rental value refers to rental income plus the estimated market rent for vacant premises in their existing condition.
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 19 million. The operating surplus shows the properties' earning potential on an annual basis, defined as contracted rental income as at 1 January 2017, less estimated property costs including property management for a rolling 12-month period.
Platzer owns and develops commercial properties in the Gothenburg area. The properties can be divided into four geographical areas: Central Gothenburg (City centre, Gårda, Krokslätt and Gullbergsvass), South/West Gothenburg (Högsbo, Långedrag and Mölndal), North/East Gothenburg (Backaplan, Gamlestaden, Lindholmen and Mölnlycke) and Artosa (the properties that were acquired from Volvo and which comprise the areas Arendal, Torslanda and Säve). Platzer aims to be the leading player in all prioritised areas through profitable growth. Today, the company is the leading player in Gullbergsvass, Gårda, Gamlestaden, Högsbo and Arendal.
As at 31 December 2016, the property portfolio comprised a total of 70 properties, including 16 project properties, with a fair value of SEK 13,615 million.
The total lettable area was 801,250 sq. m., divided as follows: offices (73%), retail (2%), industrial/warehouses (13%) and other (11%).
The economic occupancy rate in the period was 94% (91).
Platzer has 827 lease agreements for non-residential premises generating rental income of SEK 990 million. Major tenants include Sveafjord AB, DFDS Logistics Contracts AB, the Swedish Migration Agency, Schenker AB, the Swedish Social Insurance Agency, Nordea Bank AB, Länsförsäkringar Göteborg & Bohuslän, SSAB Europe, DHL Supply Chain Sweden AB, Damco Sweden AB and the Swedish National Courts Administration.
The twenty largest lease agreements accounted for 35% of rental value. The average remaining maturity was 46 months.
Platzer has also signed leases for new builds and refurbishment projects for occupancy in the period 2017 – 2018.
Apart from leasing contracts for non-residential premises, there are parking agreements for indoor and outdoor and parking, short-term parking, agreements for advertising signs and masts with a total rental value of SEK 39 million.
The Swedish property market is buoyant. In 2016, total transaction volume amounted to SEK 200 billion, which is a historically high level and a clear increase compared with the previous year. The principal reason for this are the favourable conditions for property investment, for instance low interest rates, good economic growth and high employment. At the same time, the rental market for commercial property is very strong and there is a significant shortage of housing.
Gothenburg is an attractive location for property investments. Low vacancy rates, a strong rental market and high employment have a positive effect on willingness to invest. Activity in the transaction market was also strong in the financial year, with transaction volumes amounting to around SEK 13 billion.
The trend towards falling yield requirements continued during the year. In the commercial property market, the largest decline has been recorded by office properties in central locations, with good cash flow and stable tenants. Properties in surrounding areas have not seen the same development, though yield requirements have fallen there too.
The good market outlooks means that willingness to invest is expected to remain high. At the same time, investors are no longer quite so confident that yield requirements will continue to fall. The difference between a 10-year government bond rate and required yields has also fallen in recent times due to rising interest rates, although it remains high from a historical perspective. There are no concrete signs that the huge demand for investment in property is about to fall. The overall consensus is therefore that there is still strong competition for assets that come on to the market.
The office rental market is extremely strong. Rental volume in the first three quarters of 2016 totalled 120,000 sq. m., up by around 40 per cent on the same period last year. Demand is particularly high in the more central parts of Gothenburg and Lindholmen, but lower in more peripheral areas. Overall, the vacancy rate in Gothenburg has stabilised at a low level and is very low compared with other major cities in the Nordic region.
The high level of activity is expected to continue in coming years since we are in an economic boom that is fuelled by factors benefiting an export-driven region like west Sweden. According to Business Region Göteborg, unemployment is lower than in both the Stockholm region and the country as a whole. This trend could become even more marked due to the anticipated or potential influx into the region of larger businesses such as Geely, Volvo CE and Zenuity.
All the above indicates that the market will remain strong going forward. Project volumes are expected to increase significantly in the future. This means supply will increase. This suggests good rental volumes and a more balanced market going forward.
| Price, SEK | Price/sq. m., | |||
|---|---|---|---|---|
| Object | Buyer | Seller | million | approx. |
| Artosa | Platzer | Volvo | 2,765 | 7,900 |
| Hedin portfolio | Balder | Hedin Bil | >1,200* | ~16,700 - 20,000 |
| Telia, Gårda 13:6 | Technopolis | NIAM | 1,177 | 34,300 |
| Backaplan (refers to building rights) | Skandia Fastigheter | KF | ~1,000 | - |
| 50% Karlastaden (refers to building rights) | NREP | Serneke | 750 | - |
*) As part of a larger portfolio transaction. The price is expected to exceed SEK 1.2 billion for properties in the Gothenburg area.
Source: JLL
As at 1 June, Platzer acquired the site leasehold to Lorensberg 62:1 from Gothenburg University in a deal that valued the property at around SEK 50 million. The property comprises around 4,500 sq. m. and is better known as the student union building Studenternas Hus. The University of Gothenburg has signed a lease for the entire property.
Platzer acquired the property Lindholmen 30:2 from a foreign fund as at 30 June. The acquisition was conducted as a company acquisition and the underlying property value was SEK 373 million. The property comprises just under 10,000 sq. m., is nearly fully occupied and is situated in a strategic location by Lindholmspiren quay.
Platzer acquired a property portfolio from Volvo on Hisingen in Gothenburg with effect from 15 December 2016. The portfolio consists of 10 properties with a total lettable area of around
335,000 sq. m., as well as land worth around SEK 3.7 million, in Arendal, Torslanda and Säve. In the transaction, the underlying properties were valued at approximately SEK 2.8 billion and the acquisition took the form of a company acquisition. The largest tenant comprises Volvo group companies, which lease around 50% of the space. Other tenants include DFDS, Plastal, Tibnor and Damco. The distribution in terms of property type is 60 per cent logistics and 40 per cent offices.
The acquisition of Volvo broadens Platzer's offering both geographically, as the company did not previously own any properties in the areas Arendal, Torslanda and Säve, and in terms of the addition of a new property type in the form of the Logistics segment.
| Blocks | Property designation |
Area | Address | Segment in Gothenburg |
Acq./ Proj. prop erty |
Site area, sq. m. |
Lettable area, sq. m. |
Completion | Agreed property value, SEK million |
|---|---|---|---|---|---|---|---|---|---|
| 2 | Lorensberg 62:1 | City centre | Götabergsgatan 17 | Central | A | 4,541 | 01/06/2016 | 50 | |
| 2 | Lindholmen 30:2 Lindholmen | Lindholmspiren 9 | North/East | A | 9,663 | 30/06/2016 | 373 | ||
| 4 | Arendal 764:720 | Arendal | Arendal | Artosa | A | 1,377,000 | 276,094 | 15/12/2016 | |
| 4 | Syrhåla 2:3 | Torslanda | Hamneviksvägen | Artosa | P | 60,000 | 0 | 15/12/2016 | |
| 4 | Syrhåla 3:1 | Torslanda | Bulyckevägen 25 | Artosa | A | 190,000 | 28,022 | 15/12/2016 | |
| 4 | Syrhåla 4:2 | Torslanda | Bulyckevägen 7 | Artosa | P | 172,000 | 700 | 15/12/2016 | |
| 4 | Sörred 7:21 | Torslanda | Hisingsleden | Artosa | P | 65,000 | 0 | 15/12/2016 | 2,765 |
| 4 | Sörred 7:2 | Torslanda | Sörredsrondellen | Artosa | P | 110,000 | 0 | 15/12/2016 | |
| 4 | Sörred 7:24 | Torslanda | Gunnar Engellaus väg | Artosa | A | 65,000 | 15,041 | 15/12/2016 | |
| 4 | Sörred 8:11 | Torslanda | Amazonvägen 8-10, | Artosa | A | 244,000 | 10,813 | 15/12/2016 | |
| 4 | Sörred 8:12 | Torslanda | Sörred Norra | Artosa | P | 254,000 | 0 | 15/12/2016 | |
| 4 | Åseby 7:2 | Säve | Säve Depot | Artosa | A | 1,138,000 | 5,337 | 15/12/2016 | |
| Total | 3,675,000 | 350,211 | 3,188 |
In the first quarter of the year, Platzer sold the property Gårda 8:2 to Fastighets AB L E Lundberg through a company divestment which valued the property at SEK 44 million. The deal gives Lundberg the opportunity to develop an entire block, benefiting both Gårda Norra and Platzer.
In October, Platzer completed the sale of Gullbergsvass 703:53 to the Municipality of Gothenburg for SEK 210 million. The deal was agreed already in 2015, and in connection with the sale, Platzer secured the right to acquire future building rights of around 40,000 sq. m. when the new bridge is completed, which probably means after 2021.
| Blocks | Property designation |
Area | Address | Segment in Gothenburg |
Acq./ Proj. property |
Lettable area, sq. m. |
Vacated | Agreed property value, SEK million |
|---|---|---|---|---|---|---|---|---|
| 1 | Gårda 8:2 | Gårda | N Kustbaneg | Central | A | 1,960 | 01/03/2016 | 44 |
| 2 | Gullbergsvass 703:53 | Gullbergsvass | Hamntorgsg | Central | A | 9,000 | 03/10/2016 | 210 |
| Total | 10,960 | 254 |
Platzer has potential development projects comprising gross floor area (GFA) of around 500,000 sq. m., and ongoing projects comprising around 36,000 sq. m. of lettable area. The projects mainly involve office properties with elements of service, and the mixed use development projects also include residential property. Total project volume is estimated at around SEK 12 billion, approx. SEK 5 billion of which is accounted for by housing. Platzer's strategy is to develop detailed development plans for housing and then sell these building rights in order for the company itself to be able to focus on developing the commercial properties, which have an estimated project volume of approx. SEK 7 billion.
The project portfolio is in two parts: Property development and Project development. Property development is the development of existing buildings, for instance by means of additions, extensions or conversion. Project development involves new construction on unbuilt land or on sites where existing buildings are demolished.
In 2016, we finished work on a property project at Vestagatan in Gårda on behalf of the Swedish Migration Agency.
The occupancy rate for current major projects is shown in the table on the next page.
In addition to individual development projects, Platzer is also involved in urban development of entire areas in collaboration with other businesses. The company is most deeply involved in the development of Backaplan, Södra Änggården and Gamlestaden.
In respect of Backaplan, work is underway on a detailed development plan that will result in significant transformation of the area. The new Backaplan will be a vibrant city district with housing, offices and retail. Platzer's share amounts to approx. 80,000 sq. m.
Since March 2016, work has been underway on a detailed development plan that will result in the transformation of northern Högsbo from an industrial area into a mixed-use development with an emphasis on housing. The plan went out to consultation in January 2017.
Platzer's estimated total volume in Södra Änggården comprises approximately 200,000 sq. m., 75% of which is housing. The housing units include 600 units that form part of BoStad 2021, the housing project launched by the City of Gothenburg to celebrate the city's 400th Anniversary, and which are subject to a fast-track planning process. The detailed development plan for Phase 1 should be ready in 2017, and construction is expected to start in 2018. During the spring, Platzer will commence selling future building rights to cooperation partners.
Gamlestaden is on of the most interesting districts in Gothenburg. In the next 10 years, large changes will take place in this district, where Platzer owns three major properties and projects. Construction has now started on the Gamlestads torg project and occupancy is anticipated in summer 2018. Gamlestads torg comprises 17,000 sq. m. and is situated in a location that has one of the highest levels of public transport services in Gothenburg. Letting is underway and Platzer has already signed a lease for parts of the ground floor with Västtrafik, which is setting up a travel hub in the property.
Adjacent to Gamlestads torg is Gamlestadens Fabriker (Olskroken 18:7), where work is underway on detailed development plan. In 2015, future building rights for residential use were sold to JM, which is now participating in development of the area.
In the neighbouring property Bagaregården 17:26, Platzer has completed an architectural tender and has now submitted an application for an amendment to the detailed development plan for an increased volume of housing, commercial activity and parking of a total of around 60,000 sq. m.
| 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 |
Occupancy rate, % |
Completed |
|---|---|---|---|---|---|---|---|
| Hårddisken 1 | Project Dev. | 4,800 | 85 | 10 | 100 | Q1 2017 | |
| Livered 1:329 | Property Dev. | 14,000 | 65 | 30 | 100 | Q3 2017 | |
| Gamlestaden | Project Dev. | 16,800 | 510 | 340 | 10 | Q2 2018 | |
| 740:132 Total |
14,000 | 21,600 | 660 | 380 |
| Property | Type 1) | Type of property |
New floor area (gross) sq. m. |
Project phase | Potential construction start 2) |
|---|---|---|---|---|---|
| Gullbergsvass 5:10 | Property Dev. | offices | 2,000 | detailed development plan available |
2017 |
| Gårda 4:11 | Project Dev. | offices | 2,000 | detailed development plan available |
2017 |
| Gårda 2:12 | Project Dev. | offices | 30-35,000 | detailed development plan in progress |
2017 |
| Gårda 16:17 | Project Dev. | offices | 20-25,000 | detailed development plan in progress |
2017 |
| Olskroken 18:7 | Project Dev./ Property Dev. |
mixed use development |
100-120,000 | detailed development plan in progress |
2018 |
| Södra Änggården (multiple properties) multiple develop ment phases |
Project Dev./ Property Dev. |
mixed use development |
approx. 200,000 | detailed development plan in progress |
2018 |
| Backaplan (multiple properties) |
Project Dev. | mixed use development |
60-90,000 | detailed development plan in progress |
2019/2020 |
| Bagaregården 17:26 | Project Dev. | mixed use development |
60,000 | decision on detailed develop ment plan applied for, Nov 2016 |
2019/2020 |
| Krokslätt 34:13 | Property Dev./ Project Dev. |
mixed use development |
10-15,000 | detailed development plan to commence 2017 |
2019/2020 |
| 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 commence 2018 |
2021 |
| Total | 514,000 - 581,000 |
The summary includes potential projects that have been identified for properties that the company owns or has agreed to acquire.
Image: OkiDoki 1) Type refers to property development (Property Dev.), which mean existing buildings are used as a base, or project development (Project Dev.), which involves new construction from ground up.
2) Possible construction start means when it is estimated the project could start, provided planning proceeds to plan and leasing has reached a satisfactory level.
| Lettable area, sq. m. | ||||||||
|---|---|---|---|---|---|---|---|---|
| Investment | Year of | Industrial/ | ||||||
| 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 | 6,928 | 6,928 | |||
| Skår 57:14 | Almedal | Gamla Almedalsvägen 1-51 | 1929 | 8,286 | 119 | 8,405 | ||
| Arendal 764:720 | Arendal | Arendal | 1960/2009 | 230,061 | 68 | 27,501 | 18,464 | 276,094 |
| Backa 173:2 | Backaplan | Deltavägen 4 | 1979 | 151 | 5,380 | 420 | 5,951 | |
| Brämaregården 35:4 | Backaplan | Vågmästaregatan 1 | 1984/1991 | 12,384 | 222 | 855 | 13,461 | |
| 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 | 7,306 | 2,555 | 35,203 |
| Olskroken 18:7 | Gamlestaden | Gamlestadsvägen 2-4 | 1729/1960 | 41,679 | 102 | 6,842 | 13,273 | 61,896 |
| 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 5:26 |
Gullbergsvass Gullbergsvass |
Kämpegatan 3-7 Kilsgatan 4 |
1988 2010 |
11,736 15,298 |
336 | 463 1,417 |
12,535 16,715 |
|
| Gårda 1:15 | Gårda | Vestagatan 2 | 1971/1992 | 11,896 | 11,896 | |||
| Gårda 13:7 | Gårda | Johan Willins gata 5 | 2003 | 14,925 | 14,925 | |||
| Gårda 16:17 | Gårda | Drakegatan 6-10 | 1986 | 15,234 | 278 | 564 | 16,076 | |
| 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 | 6,300 | 6,300 | |||
| Högsbo 3:12* | Högsbo | Fältspatsgatan 2-4 | 1964 | 2,776 | 277 | 6,549 | 761 | 10,363 |
| Högsbo 3:11* | Högsbo | Fältspatsgatan 6 | 1964 | 1,802 | 6,421 | 20 | 8,243 | |
| Högsbo 3:6* | Högsbo | Fältspatsgatan 8-12 | 1964 | 1,038 | 5,497 | 6,535 | ||
| Högsbo 3:9* | Högsbo | Olof Asklunds gata 14 | 1971 | 2,123 | 2,210 | 4,333 | ||
| Högsbo 32:3 | Högsbo | J A Wettergrens gata 5 | 1974 | 6,381 | 1,053 | 570 | 8,004 | |
| Högsbo 34:13* | Högsbo | Gruvgatan 2 | 1981 | 493 | 1,287 | 1,780 | ||
| Högsbo 39:1* | Högsbo | Ingela Gathenhielms gata 4 | 1972 | 3,390 | 3,390 | |||
| Högsbo 4:1* | Högsbo | Fältspatsgatan 1 / A Odhners gata 8 | 1965/1972 | 1,310 | 510 | 2,823 | 4,643 | |
| Högsbo 4:4* | Högsbo | Fältspatsgatan 3 | 1962 | 2,670 | 3,718 | 6,388 | ||
| Högsbo 4:6* | Högsbo | A Odhners gata 14 | 1974 | 1,349 | 2,549 | 3,898 | ||
| Krokslätt 34:13 | Krokslätt | Mölndalsv 91-93 / Varbergsg 2 A-C | 1950/88 | 10,905 | 725 | 1,308 | 375 | 13,313 |
| Lindholmen 30:2 | Lindholmen | Lindholmspiren 9 | 2003 | 8,667 | 996 | 9,663 | ||
| Älvsborg 178:9 | Långedrag | Redegatan 1 | 1993 | 9,659 | 296 | 3,862 | 13,817 | |
| Stigberget 34:12 | Masthugget | Masthuggstorget 3 | 1967/1999 | 4,457 | 2,801 | 264 | 253 | 7,775 |
| Stigberget 34:13 | Masthugget | Fjärde Långgatan 46-48 | 1969 | 7,246 | 120 | 2,382 | 9,748 | |
| Balltorp 1:135 | Mölndal | Taljegårdsgatan 11 | 1989 | 5,515 | 515 | 377 | 6,407 | |
| Bosgården 1:71 | Mölndal | Södra Ågatan 4 | 1988 | 4,711 | 56 | 4,767 | ||
| Forsåker 1:196 | Mölndal | Kvarnbygatan 10-14 | 1955/2002 | 5,317 | 150 | 5,467 | ||
| Fänkålen 2 | Mölndal | Johannefredsgatan 4 | 1990 | 3,913 | 45 | 536 | 4,494 | |
| Livered 1:329 | Mölndal | Streteredsvägen 100 | 1962 | 13,937 | 13,937 | |||
| Solsten 1:110 | Mölnlycke | Företagsvägen 2 | 1991 | 1,658 | 1,089 | 356 | 3,103 | |
| Solsten 1:132 | Mölnlycke | Konstruktionsvägen 14 | 2002 | 4,953 | 4,953 | |||
| Åseby 7:2 | Säve | Säve Depot | 3,864 | 773 | 700 | 5,337 | ||
| 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 | 586,302 | 18,198 | 107,137 | 88,913 | 800,550 |
*) As of 1 January 2017, properties are defined as project properties when they are part of the area covered by the detail development plan for Södra Änggården, where work is underway on a new detailed development plan to transform the area from an industrial area to a mixed-used development with a large proportion of housing.
| 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 3:13 | Högsbo | Fältspatsgatan 2 | 3,100 | - |
| Högsbo 33:1 | Högsbo | Gruvgatan | 5,500 | - |
| Högsbo 757:118 | Högsbo | Fältspatsgatan | 2,800 | - |
| Högsbo 757:121 | Högsbo | Fältspatsgatan | 1,000 | - |
| Högsbo 757:122 | Högsbo | Fältspatsgatan | 1,000 | - |
| Backen 2:18 | Mölndal | Streteredsvägen 100 | 6,900 | - |
| Hårddisken 1 | Mölndal | Betagatan, Jolen Södra | 8,200 | - |
| 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 7:2 | Torslanda | Sörredsrondellen | 110,000 | - |
| Total project properties | 710,400 | 700 |
Platzer's Class B shares have been listed on NASDAQ OMX Stockholm, Mid Cap, since 29 November 2013. The company's share price as at 31 December 2016 was SEK 46.20 per share, corresponding to a market capitalisation of SEK 5,529 million based on the number of outstanding shares. A total of 17.9 (20.9) million shares, worth a total of SEK 792 (778) million, changed hands during the year. Average turnover was around 71,000 (83,000) shares per day.
In the fourth quarter, Platzer carried out a rights issue of SEK 718 million. The terms of the issue were one new class B share for every four existing shares, at a subscription price of SEK 30. The share issue was fully subscribed and the number of class B shares increased by 23,936,858.
Following the new issue, Platzer's share capital as at the balance sheet date amounted to SEK 11,993,429.20, distributed among 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.
The long-term policy is to pay a dividend of 50% of the income from management operations after tax (22% flat-rate tax). The Board of Directors will
be recommending that the Annual General Meeting approve a dividend of SEK 1.10 per share, the dividend in the previous year was SEK 1.00 per share before the new issue in 2016.
There were 4,354 shareholders as at 31 December 2016 (3,915). Foreign ownership amounted to five per cent of equity.
Platzer's Articles of Association include a pre-emptive rights clause, which states that a buyer of Class A shares, who did not previously own Class A shares, must offer other holders of Class A shares the right of first refusal, unless this acquisition took place through an intra-Group transfer or equivalent within any of the current groups of shareholders. If the holders of Class A shares do not take up this right of first refusal, the transferred shares will automatically be converted into B shares before the acquiring party is entered in the shareholders' register.
The website Platzer.se is Platzer's primary information channel. All press releases and financial reports are published here. Press releases and reports can be obtained by email or SMS in connection with publication. The website also includes presentations, general information about the share, reports on corporate governance, financial data, as well as information on insiders and insider transactions.
| Owners | Number of Class A shares |
Number of Class B shares |
Number of shares |
Voting rights, % |
Share of equity,% |
|---|---|---|---|---|---|
| Ernström & Co | 10,000,000 | 3,973,164 | 13,973,164 | 34.7% | 11.7% |
| Länsförsäkringar Göteborg och Bohuslän | 5,000,000 | 15,203,112 | 20,203,112 | 21.8% | 16.9% |
| Backahill | 5,000,000 | 1,250,000 | 6,250,000 | 17.1% | 5.2% |
| Family Hielte/Hobohm | 22,644,016 | 22,644,016 | 7.6% | 18.9% | |
| Länsförsäkringar fondförvaltning AB | 11,492,874 | 11,492,874 | 3.8% | 9.6% | |
| Fourth Swedish National Pension Fund | 9,899,011 | 9,899,011 | 3.3% | 8.3% | |
| Carnegie Fonder | 6,750,000 | 6,750,000 | 2.3% | 5.6% | |
| Lesley Invest (incl. private holdings) | 3,464,362 | 3,464,362 | 1.2% | 2.9% | |
| Svolder AB | 1,758,213 | 1,758,213 | 0.6% | 1.5% | |
| Länsförsäkringar Blekinge | 1,460,931 | 1,460,931 | 0.5% | 1.2% | |
| Other shareholders | 21,788,609 | 21,788,609 | 7.3% | 18.2% | |
| 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 |
| 2016 | 2015 | |
|---|---|---|
| Jan-Dec | Jan-Dec | |
| Equity, SEK 3) | 38.90 | 37.05 |
| Long-term net asset value (EPRA NAV), SEK 3) | 45.72 | 43.16 |
| Net asset value, SEK 3) | 41.06 | 38.62 |
| Share price, SEK 3) | 46.20 | 38.00 |
| Profit after tax, SEK 1) | 4.92 | 6.81 |
| Income from property management, SEK | 3.21 | 2.78 |
| Cash flow from operating activities, SEK | 3.66 | 3.07 |
| Dividend, SEK 2) | 1.10 | 1.00 |
| Number of shares as at the balance sheet date, thousand | 119,684 | 95,747 |
| Average number of shares, thousand | 100,534 | 95,747 |
For definitions and calculations of Key Performance Indicators, please see pages 28-29.
1) There is no dilution effect, as there are no potential shares.. However, the number of outstanding shares will increase by 250,000 when the share saving scheme is completed.
2) Proposed dividend for 2016.
3) The rights issue conducted in 2016, in which shareholders were offered 1 new share for every 4 shares held at a price of SEK 30, has had an impact on Key Performance Indicators relating to net asset value, as well as on the share price.
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.
| Debt/equity ratio | Interest-bearing liabilities divided by equity. |
|---|---|
| Interest coverage ratio | Profit after financial income divided by interest expenses. |
| 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 net asset value are calculated on the basis of the number of |
| Equity, Long-term net asset value (EPRA | outstanding shares on the balance sheet date. Other key ratios are |
| NAV), Net asset value (NAV), Profit after | calculated on the basis of the average number of outstanding shares. |
| tax, Income from property management, | Profit after tax refers to profits attributable to the parent company's share |
| Cash flow from operating activities | holders (definition as per IFRS). |
| 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 share | |
| holders. See next page for calculation. | |
| Net asset value (NAV) | Equity as per the balance sheet including reversal of interest rate deriva |
| tives (after deduction of 22% tax). Attributable to parent company's | |
| shareholders. See next page for calculation. | |
| Investment yield | Operating surplus as a percentage of the average value of the properties, |
| translated into full-year value for interim periods. See next page for calculation. | |
| Surplus ratio | Operating surplus as a percentage of rental income. |
| Economic occupancy rate* | Rental income as a percentage of rental value, where rental income is |
| defined as 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 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.
| 2016 Jan-Dec |
2015 Jan-Dec |
|
|---|---|---|
| Interest coverage ratio (multiple) | ||
| Operating surplus | 506 | 437 |
| Central administration | -39 | -35 |
| Interest income | 0 | 0 |
| Total | 467 | 402 |
| Interest expense | -145 | -136 |
| 3.2 | 3.0 | |
| Return on equity, % | ||
| Attributable to parent company's shareholders: | ||
| Profit after tax | 494 | 653 |
| Total (adjusted for 22% tax) | 494 | 653 |
| Average equity | 4,102 | 3,257 |
| 12.0 | 20.0 | |
| Long-term net asset value (EPRA NAV), SEK | ||
| Attributable to parent company's shareholders: | ||
| Equity | 4,656 | 3,548 |
| Reversal of deferred taxes | 486 | 392 |
| Reversal of interest rate derivatives | 330 | 192 |
| Total | 5,472 | 4,132 |
| Number of shares | 119,684 | 95,747 |
| 45.72 | 43.16 | |
| Net asset value, SEK | ||
| Attributable to parent company's shareholders: | ||
| Equity | 4,656 | 3,548 |
| Reversal of interest rate derivatives (after deduction of 22% tax) | 257 | 150 |
| Total | 4,914 | 3,698 |
| Number of shares, thousand | 119,684 | 95,747 |
| 41.06 | 38.62 | |
| Investment yield, % | ||
| Operating surplus (translated into full year for interim periods) | 506 | 437 |
| Average value of properties | 10,432 | 9,064 |
| 4.9 | 4.8 |
With regard to lettable area used to calculate rental value, the weighted average for 2016 has been calculated using an average area of 470,000 sq. m. for 11.5 months and 801,000 sq. m. for 0.5 months (following the acquisition from Volvo as at 15 December 2016), which gives an average for the year of 484,000 sq. m.
With regard to the property value used to calculate investment yield, the weighted average for 2016 has been calculated by taking the average of the opening value of SEK 9,784 million and the closing value (excluding acquisitions from Volvo) of SEK 10,850 million, plus the value of the Volvo portfolio for the 15-day period of ownership, which gives an average for the financial year of SEK 10,432 million (see Key Performance Indicators above). Corresponding weighted averages have been used to calculate Key Performance Indicators for the fourth quarter.
With regard to the number of shares used to calculate performance-related indicators, the weighted average for 2016 has been calculated by taking an average of 95,747 shares for the four quarters to end-September 2016 and 119,684 shares for one quarter, which gives an average for the financial year of 100,534 shares. Corresponding weighted averages have been used to calculate Key Performance Indicators for the fourth quarter.
Interim Report January-March 2017 27 April 2017 at 08:00 Annual General Meeting 2017 27 April 2017 at 15:00 Interim Report January-June 2017 7 July 2017 at 08:00 Interim Report January-September 2017 26 October 2017 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 ) , B o x 2 11 , S E - 4 0 1 2 3 G O T H E N B U R G Office Address: Anders Personsgatan 16 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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