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Platzer Fastigheter Holding

Interim / Quarterly Report Nov 6, 2014

2955_10-q_2014-11-06_28ce07a1-5fe4-4b25-8bfb-9b6345bc85d4.pdf

Interim / Quarterly Report

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Interim Report 1 January _ 30 September 2014

  • Rental income increased to SEK 394 million (346)
  • Profit from property management improved by 24% to SEK 160 million
  • Profit for the period amounted to SEK 190 million (193)
  • Property value appreciated to SEK 7,363 million (6,913)
  • Equity per share was SEK 29.85 (28.47)
  • Earnings per share amounted to SEK 1.98 (2.74)
  • After the end of the period, property totalling SEK 700 million was acquired

Gårda Norra is one of Platzer's largest project areas in Gothenburg. The company is developing a modern office area that will smoothly blend into new residential developments in the area.

Calendar

Year-end report 2014 18 February 2015, 08.00 Q1 report January - March 2015 28 April 2015, 08.00 Annual General Meeting 2015 28 April 2015 6-month report January - June 2015 7 July 2015 9-month report January - September 2015 3 November 2015

For more information, please go to platzer.se or contact P-G Persson, CEO, +46 (0)734 11 12 22 Lennart Ekelund, CFO, +46 (0)703 98 47 87

Cover photo: An artist's impression of Gårda Norra and the Gårda 3:14 property, which are planned for completion in the autumn of 2015.

A WORD FROM THE CEO

Platzer continues to grow by improving its day-to-day management, property and project development, and by acquisitions. Our major redevelopment and new-build project in north Gårda, totalling 12,000 m², is proceeding as planned. During the period we signed lease agreements with the Swedish Migration Board for 23,500 m² of space and have already started development work at two of our properties on their behalf. In addition to these two major development projects, a number of lettings and lease renegotiations at a number of properties helped make the third quarter one of our most successful periods in terms of lease signings and renegotiations. This increased activity in the third quarter will gradually boost rental income in 2015 and 2016, but will also increase property values in this quarter. We aim is to continue to step up the pace when it comes to lettings and property and project developments to be able to meet market demands for modern premises with good communication links.

The growth of our business is reflected in our earnings in the first nine months of the year. Operating surplus increased by 16%, while profit from property management grew by 24% compared with the same period last year. Property values continued to increase, mostly through acquisitions and appreciation. The increase in property value is related to our property and project development work and a slight downward adjustment of direct yields in central Gothenburg. Net asset value per share, adjusted for changes in financial instruments, has increased by more than 11% since the start of the year, even though we have cash reserves that will enable us to grow by a further SEK 1.5 billion through acquisitions and investments in property and project development. This increase in net asset value per share indicates that our equity per share target of at least SEK 40 by the end of 2017 is definitely achievable.

As a city, Gothenburg is in a phase of intense development and as one of the leading companies in the development field, we are involved in many of the areas that are starting to take shape on the drawing board. We have had positive discussions with the Property Management Department in Lilla Bommen about selling our property that needs to be demolished to build the new Hisingsbron Bridge and receiving options for the development rights on 40,000 m² that will be available when the new bridge is completed. We expect to reach agreement in the final quarter of this year. At Backaplan, we have produced a blueprint for the future development of the area in partnership with the other property companies and the City of Gothenburg. This proposes possible development of 750,000 m², of which 75% would be residential and 25% commercial space. More detailed development planning is now in progress.

After the end of the period we signed an agreement to acquire five properties from Wallenstam, taking possession on 1 December this year. Four of the properties are a joint property portfolio with a lettable area of 36,000 m², with future development rights along Mölndalsvägen, close to Kallebäcksmotet. The fifth property is a smaller site in north Högsbo, where we have identified synergies with our current properties in the area and possible future development. This deal, worth SEK 700 million, supplements our current portfolio, and gives us a foothold in one of fastest growing areas in Gothenburg. The transaction amounts to half of our cash reserves for acquisitions, which is in line with our strategy to targeting growth in prioritised locations in Gothenburg.

P-G Persson CEO

PLATZER IN BRIEF

Platzer Fastigheter Holding AB (publ.), (Platzer) is one of the leading commercial property companies and one of the largest in Gothenburg, primarily offering office space . The company owns, manages and is developing 54 properties with a total area of around 380,000 m². Platzer delivers growth and profitability through longterm property development and management. We aim to forge good relationships with our tenants based on accessibility and excellent service. At the end of the period, Platzer had 43 employees.

Vision

Platzer aims to be the leading property company within commercial premises in the Gothenburg area. The natural first choice.

Business concept

By leveraging its leading position, Platzer will develop and manage commercial properties in the Gothenburg area in an efficient, environment friendly and professional way for the mutual benefit of tenants, employees and shareholders.

Financial targets

  • Net asset value per share: SEK 40 (2017)
  • Return on equity: Risk-free interest
  • +5 percentage points
  • Equity ratio: 30%
  • Interest coverage ratio: 1.5

Strategy

  • Strengthen its market position in Gothenburg in selected market segments. Become the market leader in each segment. Continually evaluate new market segments.
  • Seek long-term lease agreements by actively promoting healthy customer relations. Systematically evaluate the rental market to attract new customers
  • Seek to constantly improve the property portfolio via active and professional management, focusing on cost effectiveness, high occupancy and an optimum tenant mix.
  • Finance operations via existing equity capital and, where necessary, via new B share issues and debt financing.

• Gradually improve KPIs in all business and project development areas.

Value-generating growth

• Platzer refines its property portfolio via active management and rental activities, value-generating property development and new production, together with the acquisition and sale of properties.

Core values

Platzer's three core values provide support for different choices, while enabling scope for personal responsibility in day-to-day contact with tenants, suppliers, shareholders and fellow employees

Freedom with responsibility

I dare to invest for success. I show pride in my work and take responsibility for my work. My skills and personal development are my responsibility. I ask for help when I need it.

Long-term development

I actively seek out opportunities for value-generating growth. I contribute to the sustainable development of our properties, areas and city. I build long-term relationships. I aim for constant improvement.

Openness

I am open to innovation and change. I question things when I am not satisfied. I share my experiences. I maintain an open and business-like dialogue.

COMMENTS JANUARY-SEPTEMBER 2014

Comparative figures for income statement items are from the corresponding period in the previous year and 31 December 2013 for balance sheet items.

Profit

The total profit for the first nine months of the year amounted to SEK 160 million (129), an increase of 24%. This improvement is due to Platzer's growth strategy, which has meant a larger property portfolio in 2014 compared to 2013; and to development activities and rentals in its existing properties. Property values appreciated to SEK 234 million (32); financial instruments fell in value to SEK -151 million (88); while profit for the period was SEK 190 million (193).

Rental income

Rental income for the period amounted to SEK 394 million (346), an increase of 14%. This increase is mostly due to a larger property portfolio plus new rentals and completed redevelopments. Rental income from current lease agreements is assessed as SEK 538 million on an annual basis on balance day. The occupancy rate for the period was 93% (92).

Property costs

Property costs in this period increased to SEK 97 million (89), mostly due to a larger property portfolio. The warmer than usual weather had a positive effect on these costs. In most cases, tenants are responsible for utility costs, such as heating, electricity, cooling and sanitation services, plus property tax.

Operating surplus

The operating surplus amounted to SEK 297 million (257), an increase of 16%. The surplus ratio remained at a high and stable level, amounting to 75% (74).

Net financial items

Net financial items for the period amounted to SEK -115 million (-111). The increase in interest costs is attributable to debt financing for property acquisitions, which affected income by SEK -9 million compared to last year. The market rate to date in 2014 has been lower than for the corresponding period last year, but this was partly offset by higher bank margins. On 30 September the average interest rate, including the effects of derivative instruments, was 3.16% (3.42).

Tax

Tax for the period amounted to SEK -53 million (-56) and consisted mostly of deferred tax. The sale of properties, which results in realised capital gains/losses, normally occurs via company sales, so such earnings are tax free. There are also tax systems currently in place that allow for tax write-offs as well as the direct deduction of repairs in some cases, which

reduces the tax payable.

Cash flow

Net investment in properties during the period amounted to SEK 216 million (271), including property acquisitions of SEK 117 million (176). Investments in existing properties amounted to SEK 99 million (95). Investments have been entirely financed using the company's cash reserves in order to optimise the use of cash and cash equivalents from last year's rights issue. Cash flow for the period was SEK -155 million (45). Cash and cash equivalents on balance day were SEK 522 million (677). Combined with the current equity ratio of 36%, this liquidity means that reserves of approximately SEK 1.5 billion are available for future property investments.

Properties under management and changes in property value

Properties are recognised at their estimated fair value of SEK 7,363 (6,913), which is based on an internal valuation on balance day. Properties are valued in relation to the annual financial statements using a ten-year cash flow model on all properties. These valuations are reviewed and updated as part of the quarterly financial accounts, and factor in any changes that impact market yield, rent levels and occupancy rates for the properties, as well as any realised capital gains/losses and investments in the properties. Platzer commissions an annual external valuation of a cross section of its property portfolio in order to compare the quality of its internal valuations.

The internal property valuation showed a gain of SEK 234 million (32) in property values between January and September. Approximately 70% of these gains are from property development and related leasing, while the remaining 25% is from reduced direct yields.

In this period the acquisition of the property Backa 173:2 was completed on 16 May. No property sales occurred during the period. Investments in current properties amounted to SEK 99 million (95) in this period, with the largest individual investment being the new-build project Gårda Norra and the Gårda 3:12/3:14 properties. The project is planned for completion in the third quarter of 2015, when tenants are also expected to take possession.

Shareholders' Equity

Shareholders' equity for the Group amounted to SEK 2,858 million (2,726) as of 30 September. Equity per share amounted to SEK 29.85 (28.47) on balance day. Long-term net asset value,

EPRA NAV, amounted to SEK 33.95 (30.58) on balance day. Equity ratio was 36% (36).

Debt financing and gains/losses in derivative values

On balance day, long-term interest-bearing liabilities were SEK 4,515 million (4,520), corresponding to a LTV (Loan to Value Ratio) of 61% (65). Debt financing is exclusively through bank loans that are secured by mortgages on the property. The average rate on balance day increased to 3.16% (3.42). The average fixed interest period, including the effects of derivative contracts, was 3.7 years (2.8). The average maturity period was 1.7 years (2.3). To achieve the desired interest rate structure, interest derivatives are used, primarily interest rate swaps that are recognised at their fair value in the balance sheet and with gains/ losses recognised in the income statement without applying hedge accounting. As market rates fell during the period, the undervalue of Platzer's interest rate derivatives during the period increased to SEK -180 million, which resulted in a change of value of SEK -151 million. These gains/losses do not affect cash flow. The undervalue is determined for the remaining term of derivatives and financial costs reduced in the income statement .

The financial assets and liabilities that are valued at fair value in the Group comprise the aforementioned derivatives and capital redemption policies. Both the derivatives and the capital redemption policies are included in Level 2 in accordance with IFRS 13. The fair value of long-term interest-bearing liabilities corresponds to their carrying value because the discounting effect is not significant when the interest rate on the loan is variable and in line with markets.

Personnel and organisation

The number of employees increased to 43 at the end of the report period. Platzer's property management portfolio is structured into three market areas. Each market area has a property director, administrators, facilities managers and property managers. Two specialist units support these market areas: Project responsible for project development and project management and Leasing that supports the leasing of premises. Platzer's Group and staff functions are CEO, business development, finance, accounts, communications and sustainability.

Third quarter 2014

Rental income for the quarter amounted to SEK 133 million (115), an increase of 16%. The operational surplus increased in the same quarter to SEK 100 million (88), while income from property management rose by 22% to SEK 55 million (45). The value of properties under management for the quarter appreciated to SEK 126 million (10) while there was a SEK -47 (7) loss in the value of financial instruments. Profit after tax for the quarter amounted to SEK 105 million (48).

Material events after the reporting period

In October agreements were signed to acquire five properties for SEK 700 million from Wallenstam. This acquisition mostly consists of office premises in the Almedals fabriker area and Mölndalsvägen. It also includes future development rights in Almedals fabriker and norra Högsbo. The total acquisition covers 36,000 m² of lettable space in existing buildings and future development rights of approximately 25,000 m². The company will take possession of the properties on 1 December 2014.

Parent company

The parent company provides group wide management and financial services rather than having own any properties in its own name. Parent company revenues solely derive from the invoicing of services to group companies.

Significant risks and uncertainties

The property business is always exposed to risks. Good internal controls and external audits, effective management systems and policies and proven practices for property valuations are all methods employed by Platzer to manage and reduce risks. For the main risks and uncertainties faced by Platzer, please see pages 36-38 and 57-58 in the 2013 Annual Report.

Accounting principles

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 in the most recent annual report. New or revised IFRS standards that came into force in 2014 have not had any material effect on the Group's financial statements. This interim report is prepared in accordance with IAS 34 Interim Financial Reporting. The parent company applies the Annual Accounts Act and RFR2.

CONSOLIDATED INCOME STATEMENT SUMMARY

SEK million 2014
Jul-Sep
2013
Jul-Sep
2014
Jan-Sep
2013
Jan-Sep
2013
Jan-Dec
2013/2014
Oct-Sep
Rental income 133 115 394 346 464 512
Property costs -33 -27 -97 -89 -123 -131
Operating surplus 100 88 297 257 341 381
Central administration -7 -5 -22 -17 -26 -31
Net financial items -38 -38 -115 -111 -149 -153
Profit from property management 55 45 160 129 166 197
Change in value, investment properties 126 10 234 32 117 319
Change in value, financial derivatives -47 7 -151 88 82 -157
Profit before tax 134 62 243 249 365 359
Profit for the period -29 -14 -53 -56 -71 -68
Profit for the period 1) 105 48 190 193 294 291
Profit per share 2) 1.10 0.68 1.98 2.74 3.82 3.22

1) There is no other comprehensive income for the Group, as the profit for the Group for the period is the same as the comprehensive income for the period. The entire profit is attributable to parent company shareholders.

2) There is no dilution effect, as there are no potential shares.

CONSOLIDATED BALANCE SHEET SUMMARY

SEK million 30 Sep 2014 30 Sep 2013 31 Dec 2013
ASSETS
Investment properties 7,363 6,314 6,913
Other non-current assets 6 3 6
Financial non-current assets 12 23 22
Current assets 21 17 29
Cash and cash equivalents 522 163 677
TOTAL ASSETS 7,924 6,520 7,647
EQUITY AND LIABILITIES
Equity 2,858 1,974 2,726
Deferred tax liability 213 177 172
Long-term interest-bearing liabilities 4,515 4,187 4,520
Other long-term liabilities 191 45 47
Current liabilities 147 137 182
TOTAL EQUITY AND LIABILITIES 7,924 6,520 7,647
Pledged assets 4,677 4,218 4,670
Contingent liabilities 57 56 57

CONSOLIDATED CASH FLOW SUMMARY

SEK million 2014
Jul-Sep
2013
Jul-Sep
2014
Jan-Sep
2013
Jan-Sep
2013
Jan-Dec
2013/2014
Oct-Sep
Operating activities
Operating surplus 100 88 297 257 341 381
Central administration -7 -5 -22 -17 -25 -30
Net financial items -38 -38 -115 -111 -149 -153
Income tax -7 - -13 - -6 -19
Cash flow from operating activities before
changes in working capital 48 45 147 129 161 179
Change in current receivables - 0 8 0 -9 -1
Change in current liabilities 6 1 -11 -1 5 -5
Cash flow from operating activities 54 46 144 128 157 173
Investment activities
Investment in current properties under mana
gement -43 -20 -99 -95 -114 -118
Acquisition of properties under management 1 - -117 -176 -931 -872
Properties under management sold - - - 80 340 260
Other investments - 0 -1 0 -3 -4
Cash flow from investment activities -42 -20 -217 -191 -708 -734
Financing activities
Amortisation of interest-bearing liabilities -3 -41 -5 - -282 -287
New borrowing of interest-bearing liabilities - - - 143 757 614
Dividend - - -58 -35 -35 -58
New issue - - -19 - 670 651
Cash flow from financing activities -3 -41 -82 108 1 110 920
Cash flow for the period 9 -15 -155 45 559 359
Cash and cash equivalent at start of the period 513 178 677 118 118 163
Cash and cash equivalents at end of the period 522 163 522 163 677 522

STATEMENT OF CHANGES IN EQUITY SUMMARY

2014 2013 2013
SEK million Jan-Sep Jan-Sep Jan-Dec
Equity attributable to the parent company's shareholders
At the start of the period 2,726 1,816 1,816
New issue - - 651
Profit for the period 190 193 294
Dividend -58 -35 -35
At the end of the period 2,858 1,974 2,726

INCOME STATEMENT PARENT COMPANY SUMMARY

2014 2013 2013
SEK million Jan-Sep Jan-Sep Jan-Dec
Net sales 7 5 7
Operating costs -7 -6 -8
Net financial items -33 -26 62
Change in the value of financial instruments -130 85 79
Profit before tax and appropriations -163 58 140
Appropriations - - -9
Tax 36 -19 -29
Profit for the period 1) -127 39 102

1) There is no other comprehensive income for the Parent Company, as the profit for the period is the same as the comprehensive income for the period.

BALANCE SHEET PARENT COMPANY S U M M A R Y

SEK million 30 Sep 2014 30 Sep 2013 31 Dec 2013
ASSETS
Shares in group companies 1,020 815 1,020
Other financial assets 1,214 1,146 1,192
Receivables from group companies 658 562 666
Other current assets 5 2 2
Cash and cash equivalents assets 337 2 446
TOTAL ASSETS 3,234 2,527 3,326
EQUITY AND LIABILITIES
Equity 1,873 1,344 2,057
Untaxed reserves 22 12 22
Long-term liabilities 1,331 1,166 1,212
Current liabilities 8 5 35
TOTAL EQUITY AND LIABILITIES 3,234 2,527 3,326
Pledged assets 1,170 1,170 1,170
Contingent liabilities 3,324 2,973 3,329

INCOME STATEMENT PARENT COMPANY SUMMARY INTEREST-BEARING LIABILITIES

Interest maturity Loan maturity
Year Loan
amount, SEK
million
Share % Average
interest %
Loan amount,
SEK million
Share %
2014 % 42 2.01 1,000 22
2015 - - - 1,170 26
2016 200 4 3.89 1,313 29
2017 400 9 3.80 1,032 23
2018 100 2 4.20
2019 200 4 3.60
2020 300 7 4.54
2021 370 8 3.98
2022 550 13 3.88
2023 100 2 3.88
2024 400 9 4.17
Total 4,515 100 3.16 4,515 100

KEY RATIOS

2014
Jan-Sep
2013
Jan-Sep
2013
Jan-Dec
2013/2014
Oct-Sep
Financial
Debt/equity ratio (multiple) 1.6 2.1 1.7 1.6
Interest coverage ratio (multiple) 2.4 2.1 2.1 2.3
Loan-to-value ratio (LTV), % 61 66 65 61
Equity ratio, % 36 30 36 36
Return on equity, % 8.3 12.0 12.9 12.1
Property-related
Dividend yield, % 5.5 5.5 5.3 5.6
Surplus ratio, % 75 74 74 74
Economic occupancy rate, % 93 92 93 93
Rental value, SEK, m² 1,517 1,273 1,363 1,474
Leasable area, m² thousands 380 400 374 380

SEGMENT REPORT J A N -S E P 2014

Management properties Project
properties
Total
Central Gothenburg West Gothenburg Other Gotehburg
SEK million 2014 2013 2014 2013 2014 2013 2014 2013 2014 2013
Rental income 223 189 57 54 114 100 0 3 394 346
Property costs -47 -42 -22 -19 -27 -24 -1 -4 -97 -89
Operating surplus 176 147 35 35 87 76 -1 -1 297 257

The segment information in this interim report is presented in accordance with IFRS 8 Operating Segments. Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating executive, who is responsible for allocating resources and assessing the results of the operating segment. In this Group, this function has been identified as the CEO.

For the Group's internal reporting, the activities are divided into the segments shown above. The total operating surplus above is the same as the operating surplus reported in the income statement. The difference between the operating surplus of SEK 297 million (257) and profit before tax of SEK 243 million (249) comprises central administration SEK -22 million (-17), net financial items SEK -115 million (-111) and capital gains/losses in property and derivatives SEK 83 million (120).

CHANGE IN PROPERTY VALUE

2014 2013 2013
SEK million Jan-Sep Jan-Sep Jan-Dec
Property value, opening balance 6,913 6,091 6,091
Investments in existing properties 99 95 114
Property acquisitions 117 176 931
Property sales - -80 -340
Gain/loss in value 234 32 117
Property value, closing balance 7,363 6,314 6,913

PROPERTY CATEGORY AND AREA

Number of
properties
Leasable
area, m²
Fair
value,
SEK
million
Rental
value,
SEK
million
Econo
mic
oc
cupancy
rate, %
Rental
income,
SEK
million
Opera
ting
sur
plus,
SEK
million
Sur
plus
ratio,
%
MANAGEMENT PROPERTIES
Central Gothenburg
Offices/Retail 16 142,133 4,268 313 94 293 232 79
Industry/Warehouse/Other 2 23,925 278 21 72 15 12 80
Total 18 166,058 4,546 334 92 308 244 79
West Gothenburg
Offices/Retail 6 43,389 461 47 83 39 23 58
Industry/Warehouse/Other 9 53,066 362 39 87 34 19 56
Total 15 96,455 823 86 85 73 42 57
Other Gothenburg
Offices/Retail 11 92,100 1,484 137 96 131 100 76
Industry/Warehouse/Other 2 18,813 297 26 100 26 21 81
Total 13 110,913 1,781 163 96 157 121 77
TOTAL MANAGEMENT
PROPERTIES 46 373,426 7,150 583 92 538 407 75
PROJECT PROPERTIES 8 6,657 213 4 0 0 -1 -
TOTAL PLATZER 54 380,083 7,363 587 92 538 406 75

This summary covers the property portfolio as at 30 September 2014.

The profit-related columns include applicable lease agreements, including future occupancies over the next six months, if the occupancies relate to existing properties. Lease agreements with occupancies later than this or for properties currently under construction are not included; recent agreements with the Swedish Migration Board and agreements for the new production in Gårda Norra are not included either.

Rental value refers to the rental income plus the estimated market rent of vacant premises in their existing condition.

Rental income refers to the contracted rental income including agreed supplements, such as payments for heat and property taxes, irrespective of limited period discounts of approximately SEK 11 million as of 1 October 2014.

Operating surplus indicates the properties' earning potential on an annual basis defined as contracted rental income as of 1 October 2014, minus the estimated property costs including property administration for a rolling 12-month period.

PROPERTY PORTFOLIO

Platzer owns, manages and develops commercial properties in the Gothenburg area. These properties can be divided into three geographic regions: Central Gothenburg (Centre, Gårda and Gullbergsvass), West Gothenburg (Högsbo and Långedrag) and Gothenburg Other (Backaplan, Gamlestaden, Mölndal and Mölnlycke). Platzer seeks to be the leading company in all priority areas by generating profitable growth. The company is currently the market leader in Lilla Bommen, Gårda and Högsbo.

Property portfolio

As of 30 September 2014, the property portfolio comprised a total of 54 properties, including eight development projects, with a fair value of SEK 7,363 million.

The total lettable area amounted to 380,083 m², divided as follows: 64% offices, 5% retail, 16% industry/warehouse, and 15% other.

The economic occupancy rate during the period was 93% (92).

Rental development

Platzer has 542 lease agreements for non-residential premises. Principal tenants include DB Schenker, the Swedish Migration Board, Mölnlycke Health Care, Länsförsäkringar Göteborg & Bohuslän, Flexlink, Stampen, the Swedish National Courts Administration, AcadeMedia, Cochlear and Reinertsen.

The 20 largest leases accounted for 34% of the

rental value.

The average remaining maturity was 43 months.

In addition, Platzer has signed lease agreements for new-build projects, with occupancy scheduled for 2015/2016.

In addition to lease agreements for non-residential premises, there are parking leases for indoor and outdoor car parks, short-term parking facilities, and contracts for advertising signs and masts with a total rental value of SEK 35 million.

Lease structure/Agreements per year of maturity 1)

Number Rental
of income Share %
2014 30 12 2
2015 191 117 23
2016 118 102 20
2017 111 75 15
2018 49 53 10
2019 17 53 10
2020- 26 98 19
Total 542 510 100
Multi-storey car
parks/other
35
Minority -7
Total 538

1) Excluding lease agreements for new-build projects.

PROPERTY TRANSACTIONS

In the second quarter, Platzer acquired a retail property, Backa 173:2, at Backaplan in Gothenburg. Backaplan is one of the largest retail sites in Sweden and is set to undergo an exciting transformation. The company took possession of the 6,000 m² property on 16 May where the principal tenants are Rusta and Mekonomen. Platzer owns three other properties in the area.

Lettable area, m²
Quarter Properties
Area
Offices Retail Industry/
warehouse
Other Total
Acquisitions
2 Backa 173:2 Backaplan 151 5 330 420 5,901
5,901

ACQUISITIONS AFTER THE END OF THE PERIOD

In October, an agreement was signed for the acquisition of five properties from Wallenstam. This acquisition was effected via company acquisitions and the property value is SEK 700 million. Four of these properties consist of offices in the Almedal fabriker area and along the Möndalsån valley, just south of central Gothenburg. These four properties have approximately 36,000 m² of lettable space. They also include future developments on approximately 25,000 m² in the Almedals fabriker area and at a property in norra Högsbo that is adjacent to another Platzer property.

Platzer will take possession of the properties on 1 December 2014 and they will be included in the accounts from this date.

Industry/
ware
Quarter Properties Area Segment Offices Retail house Other Total
Acquisitions
4 Krokslätt 148:13 Krokslätt Gothenburg Other 2,581 616 20 3,217
4 Krokslätt 149:10 Krokslätt Gothenburg Other 6,580 348 1,000 7,928
4 Krokslätt 34:13 Krokslätt Gothenburg Other 10,855 700 851 3,557 15,963
4 Skår 57:14 Krokslätt Gothenburg Other 7,897 739 8,636
4 Högsbo 2:2 Högsbo West Gothenburg 350 350
27,913 1,048 2,206 4,927 36,094

Krokslätt 34:13, Mölndalsvägen 91-93/Varbergsgatan 2 A-C

Krokslätt 148:13, Mölndalsvägen 40-42

Krokslätt 149:10, Mölndalsvägen 36-38 Skår 57:14, Gamla Almedalsvägen 1-51

LIST OF PROPERTIES

Leasable area, m²
Industry/
ware
No Property Area Year built Offices Retail house Other Total
Management properties
1 Backa 173:2 Backaplan 1979 151 5,330 420 5,901
2 Balltorp 1:135 Mölndal 1989 5,515 515 377 6,407
3
4
Bagaregården 17:26
Bosgården 1:71
Gamlestaden
Mölndal
1941/2010
1988
24,977
4,687
365
56
6,975 2,535 34,852
4,743
5 Brämaregården 35:4 Backaplan 1984/1991 12,377 222 855 13,454
6 Forsåker 1:196 Mölndal 1955/2002 5,242 150 5,392
7 Fänkålen 2 Mölndal 1990 3,913 45 536 4,494
8 Gasklockan 2 Mölndal 1991/2010 1,482 3,394 4,876
9 Gullbergsvass 1:1 Gullbergsvass 1988/2013 16,003 16,003
10 Gullbergsvass 1:17 Gullbergsvass 1993/2011 5,400 5,400
11 Gullbergsvass 5:10 Gullbergsvass 1988 11,736 252 547 12,535
12 Gullbergsvass 5:26 Gullbergsvass 2001/2013 15,298 1,447 16,745
13 Gullbergsvass 703:53 Gullbergsvass 1991 9,000 9,000
14 Gårda 1:15 Gårda 1971/1992 9,672 9,672
15 Gårda 13:7 Gårda 2003 14,925 14,925
16 Gårda 16:17 Gårda 1986 15,101 168 564 15,833
17 Gårda 3:12 Gårda 1956/1998 3,503 3,503
18 Gårda 4:11 Gårda 1965/2002 7,464 433 7,897
19 Gårda 8:2 Gårda 1940/2007 1,960 1,960
20 Högsbo 1:4 Högsbo 1980 1,638 1,444 3,082
21 Högsbo 11:3 Högsbo 1960 400 1,257 1,657
22 Högsbo 11:5 Högsbo 1959 3,670 3,670
23 Högsbo 13:6 Högsbo 1992/1999/2013 6,196 1,658 7,854
24 Högsbo 2:1 Högsbo 1991/2009 6,300 6,300
25 Högsbo 27:8 Högsbo 1971/2009/2013 528 2,028 2,556
26 Högsbo 3:6 Högsbo 1964 4,831 19,588 722 25,141
27 Högsbo 3:9 Högsbo 1971 2,123 2,210 4,333
28 Högsbo 32:3 Högsbo 1974/2011 6,381 1,053 570 8,004
29 Högsbo 34:13 Högsbo 1981 493 1,287 1,780
30 Högsbo 39:1 Högsbo 1972 3,390 3,390
31 Högsbo 4:1 Högsbo 1965/1972 1,310 510 2,823 4,643
32 Högsbo 4:4 Högsbo 1962 2,670 3,718 6,388
33 Högsbo 4:6 Högsbo 1974 1,349 2,549 3,898
34 Livered 1:329 Mölndal 1962 13,937 13,937
35 Nordstaden 13:12 Centre 1929/1993 5,070 5,070
36 Nordstaden 14:1 Centre 1890/1993/2012 8,958 8,958
37 Nordstaden 20:5 Centre 1943 2,554 231 2,785
38 Solsten 1:110 Mölnlycke 1991 1,658 1,089 356 3,103
39 Solsten 1:132 Mölnlycke 2002 4,953 4,953
40 Stampen 4:42 Centre 2009 5,769 2,847 8,616
41 Stampen 4:44 Centre 1930/1994 14,681 14,681
42 Stigberget 34:12 Centre 1967/1999/2013 4,433 2,801 264 253 7,751
43 Stigberget 34:13 (50,3%) Centre 1969/2011 2,738 66 2,033 4,837
44 Tingstadsvassen 3:8 Backaplan 1991 29 3,966 850 4,845
45 Tingstadsvassen 4:3 Backaplan 1943/1986/2011 517 3,268 54 3,785
46 Älvsborg 178:9 Långedrag 1993 9,659 296 3,862 13,817
Total properties under management 239,719 16,922 58,494 58,291 373,426
Project properties
47 Gårda 2:12 Gårda 1959 1,785 1,340 3,125
48 Gårda 3:14 Gårda 0
49 Högsbo 3:5 Högsbo 0
50 Högsbo 7:21 Högsbo 0
51 Högsbo 14:3 Högsbo 1967 3,255 277 3,532
52 Högsbo 757:118 Högsbo 0
53 Högsbo 757:121 Högsbo 0
54 Högsbo 757:122 Högsbo 0
Total project properties 5,040 1,340 277 6,657
TOTAL 244,759 18,262 58,771 58,291 380,083

THE SHARE AND SHAREHOLDERS

Platzer B shares were floated on the NASDAQ OMX Stockholm, Mid Cap, on 29 November 2013 at an initial price of SEK 26.50 per share. In conjunction with the listing, there was a new issue that raised SEK 651 million net of issue costs. The share price was SEK 30.00 per share on 30 September 2014 giving a market capitalisation of SEK 2,872 million.

Share capital

On balance day, the share capital in Platzer was distributed among 20,000,000 A shares with 10 votes per share, and 75,747,434 B shares carrying one (1) vote per share. Each share has a quotient value of SEK 0.10.

Dividend policy and dividend

The long-term policy is to pay a dividend of 50% of income from property management after tax (22% flat-rate tax).

Shareholders

There were 3,065 shareholders at the end of the period. Foreign ownership amounted to 6% of the share capital and 2% of the votes.

Platzer Fastigheter Holding AB (publ) was formed on 1 January 2008 by Ernström & Co, Brinova Fastigheter (acquired by Backahill AB in 2012) and Länsförsäkringar Göteborg and

Bohuslän. The same group still constitutes Platzer's A shareholders.

In Platzer's Articles of Association, there is a pre-emptive rights clause, which states that a buyer of A shares, who did not previously own A shares, must offer other A share holders the right of first refusal, unless this acquisition was through an intra-Group transfer or a transfer to a legal entity that includes the company Länsförsäkringar. If the A shareholders do not take up this right of first refusal, the transferred shares will automatically become B shares before the acquiring party is entered into the shareholders' register.

Information for shareholders

Platzer's primary information channel is platzer.se. All press releases and financial reports are published here. Press releases and reports can be sent by email or SMS when published. The website also includes presentations from general meetings and meetings with analysts, general information about the shares, reports on corporate governance, financial data and information on insiders and insider trades.

MAJOR SHAREHOLDERS

The major shareholders of Platzer Fastigheter Holding AB (publ) as at 30 September 2014

Owners Number of A
shares
Number of B
shares
Number of
shares
Number
of votes
Capital
share
Ernström & C:o 10,000,000 0 10,000,000 36.3 % 10.4 %
Länsförsäkringar Göteborg och Bohuslän 5,000,000 11,162,490 16,162,490 22.2 % 16.9 %
Backahill 5,000,000 9,125,000 14,125,000 21.4 % 14.8 %
Familjen Hielte / Hobohm 0 19,293,745 19,293,745 7.0 % 20.2 %
Länsförsäkringar fondförvaltning AB 0 9,323,699 9,323,699 3.4 % 9.7 %
Lannebo fonder 0 3,397,934 3,397,934 1.2 % 3.5 %
Lesley Invest (incl. private holdings) 0 2,771,490 2,771,490 1.0 % 2.9 %
Svolder AB 0 2,568,684 2,568,684 0.9 % 2.7 %
Nordea Investment Funds 0 1,300,089 1,300,089 0.5 % 1.4 %
Prior & Nilsson Fond- och Kapitalförvaltning AB 0 1,279,502 1,279,502 0.5 % 1.3 %
Other owners 0 15,524,801 15,524,801 5.6 % 16.2 %
Total (3,065 owners) 20,000,000 75,747,434 95,747,434 100 % 100 %

KEY RATIOS PER SHARE

2014
Jan-Sep
2013
Jan-Sep
2013
Jan-Dec
2013/2014
Oct-Sep
Equity, SEK 29.85 28.02 28.47 29.85
Long-term net asset value (EPRA NAV), SEK 33.95 30.85 30.58 33.95
Market value, SEK 30.00 - 27.00 30.00
Profit after tax, SEK 1) 1.98 2.74 3.82 3.22
Profit from property management, SEK 1.67 1.83 2.16 2.17
Cash flow from operating activities, SEK 1.51 1.82 2.04 1.91
Number of shares as at balance day, thousands 95,747 70,447 95,747 95,747
Average number of shares, thousands 95,747 70,447 76,772 90,752

1) There is no dilution effect, as there are no potential shares.

SIGNATURES

The Board of Directors and the Managing Director hereby certify that, to the best of their knowledge, this interim report provides a true and fair presentation of the business, financial position and results of the Parent Company and the Group, and describes significant risks and uncertainty factors that the Parent Company and the companies in the Group face.

Gothenburg, 6 November 2014

Fabian Hielte Eva Persson Chair of the board member

Anders Jarl Ingemar Larsson member member

Lena Apler P-G Persson member CEO

AUDITOR'S REVIEW OF INTERIM REPORT

Introduction

We have reviewed the summary interim financial information (interim report) of Platzer Fastigheter Holding AB (publ) as at 30 September 2014 and the nine-month period ended on this date. The Board of Directors and the Managing Director are responsible for the preparation and presentation of this interim financial information in accordance with IAS 34 and the Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.

Scope of 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 interim financial information consists of making inquiries, primarily of people responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with the ISA and generally accepted auditing practices. The procedures performed consequently do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review nothing has come to our attention that causes us to believe that the interim report has not been prepared, in all material respects, for the Group in accordance with IAS 34 and the Annual Accounts Act, and for the Parent Company in accordance with the Annual Accounts Act.

Gothenburg, 6 November 2014

Öhrlings PricewaterhouseCoopers AB

Håkan Jarkvist Authorised Public Accountant

DEFINITIONS

FINANCIAL

Debt/equity ratio

Interest-bearing liabilities divided by equity.

Interest coverage ratio

Profit after financial income divided by interest expenses.

Loan-to-value ratio (LTV)

Interest-bearing liabilities divided by the value of the properties.

Equity ratio

Total shareholders' equity divided by total assets.

Return on equity

Profit after tax as a percentage of average equity, translated into full-year values for interim periods.

PROPERTY-RELATED

Dividend yield

Operating surplus as a percentage of the average value of the properties, translated into full-year values for interim periods.

Surplus ratio

Operating surplus as a percentage of rental income.

Economic occupancy rate

Rental income as a percentage of the rental value where rental income is defined as rents charged as well as supplements such as payments for heating and property tax, and rental value is defined as rental income plus the estimated market rent (excluding supplements) for estimated vacant areas (in their 'as is' condition).

Rental value, SEK, m²

Rental value divided by the lettable area where the rental value is defined as rental income plus estimated market rent (excluding supplements) for vacant areas (in their 'as is' condition).

SHARES

Key Performance Indicators (KPIs) per share

Equity and net asset value calculated in terms of the number of shares on balance day; others are calculated in terms of the average number of shares.

EPRA NAV

Shareholders' equity on balance day adjusted fro interest rate derivatives and deferred taxes.

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 , S w e d e n Address: Anders Personsgatan 16 Tel. +46 (0)31 63 12 00, Fax +46 (0)31 63 12 01 [email protected] platzer.se Head office: Gothenburg Company number: 556746-6437

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