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Platzer Fastigheter Holding

Annual / Quarterly Financial Statement Feb 18, 2014

2955_10-k_2014-02-18_3d80600b-b159-47d6-b233-78e9f2d90164.pdf

Annual / Quarterly Financial Statement

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2013 INTERIM STATEMENT Jan-Dec

  • Rental income increased to SEK 464 million (384m)
  • Profit from property management improved by 28 % to SEK 166 million
  • Profit for the year rose to SEK 294 million (157m), an increase of 87 %
  • Real estate value increased to SEK 6,913 million (6,091m)
  • Equity per share rose to SEK 28.47 (25.77)
  • Profit per share rose to SEK 3.82 (2.47)
  • The Board proposes a dividend of SEK 0.60/share

P-G Persson, CEO, rings the bell for Platzer at NASDAQ OMX Stockholm, Mid Cap on 29 November 2013.

Calendar

Annual report, 2013 Week 13, 2014 Interim report, January-March 2014 24 april 2014 AGM 24 april 2014, 3 p.m. Interim report, January-June 2014 8 July 2014 Interim report, January-September 2014 6 November 2014

For further information, please go to www.platzer.se or contact P-G Persson, CEO, tel. (+46) 0734 111 222 Lennart Ekelund, CFO, tel. (+46) 0703-984 787

THE CEO HAS THE FLOOR

Platzer was listed on NASDAQ OMX Stockholm, Mid Cap, on 29 November 2013 and this is the first financial statement since the listing, which in many ways is special, with more owners, increased interest from the world at large, and dilutive and balance-sheet effects arising from the new issue in the company. At the same time, these are end-of-year and quarterly accounts for a Platzer with the same strategy and sense of direction as prior to its admission to the stock exchange. Listing the company on the Stockholm Stock Exchange was considerably more far-reaching than many of us had realized before we embarked on the process and it feels great to be operating as normal again. Platzer's value generation is based on active work in the day-to-day management and development of its properties, successful transactions and profitable property and project development. In order to succeed in this, we need knowledge of the market, skilled staff and access to financing. The company has all these ingredients and is prepared for continued growth in every way.

Profit-wise 2013, as a whole, turned out to be a good year for Platzer. The real estate value continued to increase as a result of acquiring new properties, but also from investing in property development in existing properties. Changes in value improved the bottom line by SEK 117 million. The profit from property management increased by 28 %. The breakdown value per share increased by more than 10 %, despite dilution to coincide with the new issue in connection with the stock exchange listing, but was helped by positive changes in the value of derivative instruments during the year. Both the day-to-day management, property transactions and property development contributed to the improvement in the result, which shows that Platzer continues to deliver profitable growth in accordance with the longterm plan that exists to make the company the number-one commercial property company in the Gothenburg area.

The market for commercial office premises in the Gothenburg area, roughly 80 % of Platzer's property portfolio, continued to develop positively in the central parts of Gothenburg,

where the bulk of Platzer's property assets are to be found. Above all, the driving force behind the demand for premises is the number of people moving to the Gothenburg area, the low proportion of newbuilds being constructed and a trend of more tenants looking for locations with good all-round communications. Our newbuild project in north Gårda was let to the Swedish Social Insurance Agency and the Gothenburg Region's Association of Local Authorities (GR) during the final quarter. These rentals include some 10,500 sq.m for two stable tenants and thus more than 90 % of the lettable area in the project has been let. The project has begun and occupation will take place in autumn 2015. The rental market for office space outside of central Gothenburg has not enjoyed the same positive development during the year. By contrast, there is still good demand for warehousing and industrial premises in those locations.

During the year we sold five properties and purchased four, together making property business worth SEK 1.3 billion and net growth of some SEK 600 million. The properties acquired were all located in high-priority areas and properties neighbouring our existing stock. The largest sale was our property at Skår 40:17, consisting of a disused factory directly adjacent to Liseberg. The buyer was Liseberg AB — a logical and sound deal for both parties. Our goal is to carry on growing by acquiring properties in attractive locations and overseeing property and project development. Our new issue, combined with good opportunities to raise loans from some of our lenders – the four large Swedish banks – gives us acquired space worth approximately SEK 1.5 billion. We shall be actively looking for property transactions and operating development projects that will improve the company's business ratios. That growth has not happened, nor will it happen going forward; to the detriment of Platzer's profitability.

P-G Persson CEO

PLATZER IN BRIEF

Platzer Fastigheter Holding AB (publ), (Platzer) is one of Gothenburg's largest and foremost property companies in commercial property; primarily offices. The company owns, manages and develops 53 properties with a total floorage of some 375,000 square metres. By means of long-term property development and management, Platzer creates growth and profitability in its properties. Platzer prioritizes good relations with its tenants and offering a service characterized by proximity and commitment.At the end of the period Platzer had 41 employees.

Vision

Platzer is set to become the leading property company in commercial premises in the Gothenburg area — the obvious solution of first resort.

Business concept

From a leading position, with consideration for the environment and high quality, Platzer will effectively develop and manage commercial properties in the Gothenburg area to the benefit of clients, staff and owners.

Ambition

To continue growing in the Gothenburg market and consolidating our position as one of the leading players in the market.

Financial objectives

  • Breakdown value per share: SEK 40 (2017)
  • Return on equity: Risk-free interest rate of +5 percentage units
  • Equity ratio: 30 percent
  • Interest coverage ratio: x 1.5

Strategy

  • Strengthen market position in Gothenburg in selected submarkets. Become a marketleading player in each respective submarket. Continuously evaluate new submarkets.
  • Strive for long-term tenancies by actively working on client relations. Systematically work up the rental market to reach new clients.
  • Endeavour to constantly improve the property portfolio by means of active management and refinement with the focus on good cost-effectiveness, high occupancy ratio and optimal tenant make-up.

• Finance operations through existing proprietary capital, new proprietary capital by issuing class-B shares, as well as loan financing.

• With all business and project development, the aspiration is to improve the company's key ratios over time.

Core values

Platzer's three core values pervade the entire concern. These core values provide support in the run-up to various choices and create space for personal responsibility in the day-to-day contact with clients, suppliers, owners and colleagues.

Freedom with responsibility

I dare to gamble in order to succeed. I display pride in my work and am accountable for the part I play. I take responsibility for my skillsets and personal development. I accept help when needed.

Long-term development

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

Openness

I am open to innovative thinking and change. I dare to raise issues when displeased. I share the benefit of my experience. I conduct an open and businesslike dialogue.

COMMENTS JAN-DEC 2013

Comparative profit/loss items refer to the corresponding period the previous year, and for balance-sheet items to 31/12/2012.

Profit

The profit for the year from property management amounted to SEK 166 million (130m), an improvement of 28 %. For the most part, the improved result is down to a larger property holding in accordance with the growth strategy under which Platzer operates. Profit for the year amounted to SEK 294 million (157m), an improvement of SEK 137 million or 87 %. Changes in the value of investment properties also contributed to this improvement by injecting SEK 117 million (108m), as did changes in the value of financial instruments, having boosted the result by SEK 82 million (-55m).

Rental income

Rental income for the year totalled SEK 464 million (384m), an increase of 21 %. The increase in income is chiefly attributable to a larger property portfolio and to a lesser extent rent increases and property development. As at the accounting date, the rental income from existing rent contracts is estimated to be SEK 531 million (453m). The financial occupancy ratio, as reported for the property stock as a whole, stood at 93 % (91) for the period.

Property costs

Property costs for the year totalled SEK 123 million (104m), an increase due mostly to the expanded property stock. Costs have also been adversely affected by a considerably colder quarter than normal. Utility costs such as heating, cooling, electricity and cleaning are predominantly passed on to the tenants, together with property tax.

Operating surplus

Operating surplus amounted to SEK 341 million (280m), an increase of 22 %. The net profit ratio for the property stock as a whole continued at a stable, high level, amounting to 74 % (73) for the period.

Net financial income/expenditure

Net financial income/expenditure for the year was SEK -149 million (-127m). The increased interest costs refer mainly to the loan financing of property acquisitions, subjecting the result to a net charge of approximately SEK -23 million compared to the previous year. The market interest rate this year has been somewhat lower than the previous year but this has largely been countered by a higher marginal cost for bank financing.

Tax

Income tax on the result for the year amounted to SEK 71 million (26m) and is largely made up of deferred tax, with current tax totalling SEK 6 million (11m). The sale of properties is generally effected through company sales, which are exempt from taxes. In addition there is scope for greater depreciation for income tax and, in a number of cases, also direct deduction of conversion and rebuilding costs, which lowers the current tax.

Cashflow

Net investments in properties during 2013 amounted to SEK 705 million (1,480m), including property acquisitions of SEK 931 million (1,500m). In net terms, property investments were affected by property sales, which amounted to SEK 340 million (171m) during the period. In addition, investments for the year in existing properties amounted to SEK 114 million (151m). These investments have been financed partly by loans worth a net SEK 475 million (1,114m) and partly through the cashflow generated by ongoing operations, which totalled SEK 157 million (145m). Furthermore, during December a new issue without preferential rights was implemented in parallel with the floating of Platzer's B-share on the NASDAQ OMX Stockholm. The cashflow for the year, after yielding a dividend to the shareholders of SEK 35 million (27m), amounted to a total of SEK 559 million (79m). At the turn of the year liquid funds stood at SEK 677 million (118m).

Investment properties and changes in property values

Properties are reported at their estimated real value of SEK 6,913 million (6,091m), which is based on an internal valuation on the accounting date. Properties are valued internally every year to coincide with the end-of-year accounts date using a ten-year cashflow model for all properties. Once a year Platzer conducts an external valuation of a selection of the property stock with a view to quality-assuring the internal valuation. This year the external valuation was carried out on 30 September and, to mark the creation of a prospectus leading up to the stock exchange listing of Platzer's B-share, included all properties in the portfolio. The property valuation for the year flagged a change in the value of the investment properties of SEK 117 million (108m). During the year four properties were acquired at a cost of SEK 931 million (1,500m), at the same time as five properties were sold for SEK 340 million (171m). Investments in existing properties amounted to SEK 114 million (151m) during the period.

Equity

Group equity at the turn of the year stood at SEK 2,726 million (1,816m). During the second quarter a dividend of SEK 35 million (SEK 0.50 per share) was paid out to the shareholders. During December, a new issue was conducted without preferential rights for a total of 25.3 million shares at a price of SEK 26.50/ share.

After allowing for issuing costs of SEK 19 million, the fully subscribed share raised a net SEK 651 million. As at the accounting date, equity per share stood at SEK 28.47 (SEK 25.77) and that same day the long-term breakdown value per share was SEK 30.58 (29.10).

At the same time, solvency was 36 % (29), allowing scope for property investments worth just under SEK 1.5 billion, at a solvency ratio of 30 %

Loan financing and changes in the value of derivatives

As at 31 December, long-term interest-bearing debts amounted to SEK 4,520 million (4,045m), equivalent to a loan-to-value ratio of 65 % (66). Loan financing is done exclusively through bank loans, which are secured through mortgages on property. The average period during wich capital is tied up to 2.3 (1.2) years. The average interest rate as at the accounting date was 3.42 % (3.55). The average fixed-rate period, including the effects of derivatives contracts entered into, was concurrently 2.8 (3.4) years. During January 2014, the average fixed-rate period was extended by signing two interest rate swaps with an average term of 9 years. In order to achieve the desired interest lock-in structure, interest derivative instruments are used, chiefly interest swaps. These are posted at their true value in the balance-sheet, showing changes in value in the profit and loss account without applying hedge accounting. As a result of increased market interest rates during 2013 the undervalue in Platzer's interest derivative during the year has been reduced to SEK -29 million, leading to a positive change in value of SEK 82 million for the closing period. The change in value does not affect the cashflow. When the term of the derivative expires, the value is always zero.

The financial assets and liabilities assessed at their fair value within the group are made up of the derivative instruments and endowment assurances described above. Both the derivative instruments and the endowment assurances can be found at level 2 according to IFRS 13, Fair value measurement. At the turn of the year the fair value of the derivative instruments amounted to SEK -29 million divided between other long-term debts of SEK 51 million and financial fixed assets of SEK 22 million. The fair value of long-term interest-bearing debts is equivalent to their reported value since the discounting effect is not essential, given that interest on the loan is variable and adjusted to the market.

Events after the end of the reporting period

No major events occurred after 31 December 2013.

The parent company

The parent company has no properties of its own but does handle certain group-wide functions involving management and financing. Income in the parent company relates to invoicing of services to inter-group companies.

Major risks and uncertainty factors

In the property business, as in all business, there is

always exposure to risk. Good internal control and external control by auditors, smooth-functioning administrative systems and policies as well as tried and tested property valuation routines are methods which Platzer uses to handle and reduce such risks. Platzer's income is affected primarily by rental and occupancy rates, and by losing clients. In order to diminish the operative risks, Platzer is consciously working to increase the average contractual period, reduce its dependence on individual tenants and carry out credit appraisals when letting to new clients. Platzer is endeavouring to write rental agreements under which a more substantial share of the running costs and property tax is passed on to the tenants, thereby limiting the risks associated with any change in these costs for Platzer. Unforeseen maintenance costs can end up having a negative impact on the bottom line. The properties' value is affected partly by Platzer's own work on the properties and partly by external factors, such as investors' yield requirements. In addition, there are also operational risks that may arise as a result of faulty routines and environmental risks. Platzer is actively working to limit this type of risk. The financial risks primarily impacting on Platzer are described on pages 35-36 of the annual report for 2012. In addition to the risk factors specified in the "Invitation to subscribe for shares" from 18 November 2013.

Accounting principles

Platzer compiles its consolidated financial statement in accordance with IFRS (International Financial Reporting Standards), as endorsed by the EU. The same accounting and valuation principles have been applied as to the annual report most recently submitted. In addition, IFRS 8, Operating segment, has been applied in the interim report drawn up. The new IFRS 13 standard, Fair value measurement, which applies from 1 January 2013, primarily entails stricter disclosure requirements in the annual report. Investment properties are valued in accordance with level 3 in the fair value hierarchy and derivative instruments in accordance with level 2. The introduction of IFRS 13 is not deemed to have any effect on Platzer's valuation methods or result. Other new or revised IFRS standards which came into force in 2013 have not had any major impact on the group's financial reports. The interim report has been drawn up in accordance with IAS 34, Interim financial reporting. The parent company applies the Swedish Annual Accounts Act and RFR2 (produced by the Swedish Financial Reporting Board, RFR).

Proposed dividend

The Board will propose that the annual general meeting adopt a dividend of SEK 0.60 (0.50) per share.

Gothenburg, 18 February 2014 Platzer Fastigheter Holding AB (publ)

P-G Persson CEO

COMBINED FINANCIAL STATEMENT THE GROUP CONDENSED

SEK million 2013
Oct-Dec
2012
Oct-Dec
2013
Jan-Dec
2012
Jan-Dec
Rental income 117 111 464 384
Property costs -33 -35 -123 -104
Operating surplus 84 76 341 280
Central administration -9 -7 -26 -22
Net financial income/expenditure -38 -37 -149 -127
Profit from property management 37 32 166 130
Change in value, investment properties 85 42 117 108
Change in value, financial instruments -6 -13 82 -55
Profit/loss before tax 116 61 365 184
Tax on profit/loss for the period -15 9 -71 -26
Profit/loss for the period 1) 101 70 294 157
Result per share 2) 1.32 1.10 3.82 2.47

1) There is no total result in general for the group, hence the aggregate total result for the group tallies with the profit/loss for the period. The whole of the result is allocable to the parent company's shareholders.

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

COMBINED BALANCE-SHEET THE GROUP CONDENSED

SEK million 31/12/2013 31/12/2012
ASSETS
Investment properties 6,913 6,091
Other fixed assets 5 3
Financial fixed assets 22 4
Current assets 35 20
Liquid assets 677 118
TOTAL ASSETS 7,652 6,235
EQUITY AND DEBT
Equity 2,726 1,816
Deferred tax liability 172 125
Long-term interest-bearing debts 4,520 4,045
Other long-term debt 51 114
Short-term debt 183 136
TOTAL EQUITY AND DEBT 7,652 6,235
Pledged assets 4,670 4,090
Contingent liabilities 10 10

CASHFLOW STATEMENT THE GROUP CONDENSED

2013 2012 2013 2012
SEK million Oct-Dec Oct-Dec Jan-Dec Jan-Dec
Ongoing operations
Operating surplus 84 76 341 280
Central administration -8 -7 -25 -22
Net financial income/expenditure -38 -37 -149 -127
Income tax -6 -11 -6 -11
Cashflow from ongoing operations prior to change in working capital 32 21 161 120
Change in current receivables -15 -3 -15 14
Change in current liabilities 12 14 11 11
Cashflow from ongoing operations 29 32 157 145
Investment activities
Investment in existing investment properties -20 -46 -114 -151
Acquisition of investment properties -755 - -931 -1 500
Investment properties sold 260 -1 340 171
Other investment -3 0 -3 0
Cashflow from investment activities -518 -47 -708 -1,480
Financing activities
Change in interest-bearing debts 333 -47 475 1 114
Dividend - - -35 -27
New issue 670 - 670 327
Cashflow from financing activities 1,003 -47 1,110 1,414
Cashflow for the period 514 -62 559 79
Liquid assets at start of period 163 180 118 39
Liquid assets at end of period 677 118 677 118

CHANGES IN EQUITY THE GROUP CONDENSED

SEK million
Equity attributable to the parent
company's shareholders
At start of
period
New issue Total result for
period
Dividend At end of
period
Jan-Dec 2013 1,816 651 294 -35 2,726
Jan-Dec 2012 1,359 327 157 -27 1,816

PROFIT AND LOSS ACCOUNT PARENT COMPANY CONDENSED

2013 2012
SEK million Jan-Dec Jan-Dec
Income 7 7
Costs -8 -6
Net financial income/expenditure 62 128
Change in value, financial instruments 79 -55
Profit/loss before tax 140 74
Balance sheet allocations -9 -9
Tax on profit/loss for the period -29 3
Profit/loss for the period 1) 102 68

1) There is no other total result in the parent company, for which reason the aggregate total result for the parent company tallies with the profit/ loss for the period.

BALANCE-SHEET PARENT COMPANY CONDENSED

SEK million 31/12/2013 31/12/2012
ASSETS
Participation in group companies 1,020 815
Other financial fixed assets 1,194 1,126
Receivables from inter-group companies 666 630
Other current assets 2 24
Liquid assets 446 0
TOTAL ASSETS 3,328 2,595
EQUITY AND DEBT
Equity 2,057 1,339
Untaxed reserves 22 12
Long-term liabilities 1,214 1,235
Short-term liabilities 35 9
TOTAL EQUITY AND DEBT 3,328 2,595
Pledged assets 1,170 1,126
Contingent liabilities 3,329 2,830

INTEREST-BEARING DEBTS

Interest maturity date Loan maturity date
Year Loan amount
SEKm
Share
%
Average
rate %
Loan sum
SEKm
Share
%
2014 2,250 50 2,75 1,005 22
2015 300 7 4,56 1,170 26
2016 300 7 4,18 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 200 4 3,80 - -
2023 100 2 3,88 - -
Totalt 4,520 100 3,42 4,520 100

BUSINESS RATIOS

2013
Jan-Dec
2012
Jan-Dec
Financial
Debt/equity ratio, times 1.7 2.2
Interest coverage ratio, times 2.1 2.0
Loan-to-value ratio, % 65 66
Solvency, % 36 29
Return on equity, % 12.9 9.9
Property-related
Dividend yield, % 5.3 5.4
Net profit ratio, % 74 73
Financial occupancy rate, % 93 91
Letting value, SEK/sq.m 1,363 1,078
Lettable floorage, thousand sq.m 374 402

SEGMENT REPORTING JAN-DEC 2013

Investment properties Project
properties
Total
Central Gothenburg West Gothenburg Gothenburg Other
SEK million 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012
Rental income 253 213 72 72 134 92 4 8 463 384
Property costs -57 -50 -27 -28 -33 -20 -5 -6 -122 -104
Operating surplus 196 163 45 44 101 72 -1 1 341 280

The segment information is presented in the summary financial statement drawn up in accordance with IFRS 8, Operating segment. An operating segment is reported so as to tally with the internal reporting submitted to the chief executive decision-maker, which is the function responsible for allocating resources and assessing the operating segment's result. In the group this function has been identified as the CEO.

In the group's internal reporting, the company is divided into the above segments. According to the above, the total operating surplus tallies with the operating surplus posted in the profit and loss account. The difference between the operating surplus of SEK 341m (280m) and pre-tax result of SEK 365m (184m) comprises central administration of SEK 26m (-22m), net financial income/expenditure of SEK -149m (-127m), and changes in the value of properties and derivatives of SEK 199m (53m).

CHANGE IN PROPERTY VALUES

SEK million
Value of properties as at 01/01/2013 6,091
Investments in existing properties 114
Property acquisition 931
Property sales -340
Change in value 117
Value of properties as at 31/12/2013 6,913

BREAKDOWN BY PROPERT Y CATEGORY AND AREA

No. of
proper
ties
Lettable
floorage,
sq.m
Fair
value,
SEKm
Letting
value,
SEKm
Finan
cial
oc
cupancy
rate, %
Rental
income,
SEKm
Opera
ting
sur
plus,
SEKm
Net
profit
ratio,
%
INVESTMENT PROPERTIES
Central Gothenburg
Offices/Shops 16 142,133 4,090 310 94 291 228 78
Industrial/Warehousing/Other 2 23,925 263 21 70 15 12 79
Total 18 166,058 4,353 331 93 306 240 78
West Gothenburg
Offices/Shops 6 43,389 480 49 84 41 25 61
Industrial/Warehousing/Other 9 53,066 369 39 95 37 23 62
Total 15 96,455 849 88 89 78 48 62
Gothenburg Other
Offices/Shops 10 86,405 1,363 124 97 121 90 74
Industrial/Warehousing/Other 2 18,813 233 26 96 25 18 74
Total 12 105,218 1,596 150 97 146 108 74
TOTAL
INVESTMENT PROPERTIES
45 367,731 6,798 569 93 530 396 75
PROJECT PROPERTIES 8 6,657 115 4 25 1 0 -
TOTAL PLATZER 53 374,388 6,913 573 93 531 396 74

The schedule includes the property portfolio as at 31 December 2013.

Letting value refers to rental income plus assessed market rent for let areas in existing condition.

Rental income refers to rental income contracted for, including extra charges agreed and irrespective of fixed-term rebates of approx. SEK 8 million as at 1 January 2014.

The operating surplus shows the properties' earning capacity on an annual basis defined as rental income contracted as at 1 January 2014, less assessed property costs including property administration on a rolling 12-month basis.

PROPERTY PORTFOLIO

Platzer owns, manages and develops commercial properties in the Gothenburg area. The properties can be divided into three areas geographically: Central Gothenburg (Centre, Gårda and Gullbergsvass), West Gothenburg (Högsbo and Långedrag) and Gothenburg Other (Backaplan, Gamlestaden [Old Town], Mölndal and Mölnlycke). Through profitable growth, Platzer is endeavouring to be the leading player in all of its priority areas. The business is currently the top player in Lilla Bommen, Gårda and Högsbo.

The property portfolio

The property portfolio as at 31 December 2013 included a total of 53 properties, eight of which were project properties, with a fair value of SEK 6,913 million.

The total lettable floorage amounted to 374,388 sq.m, which was divided between offices 66 %, shops 2 %, industry/warehousing 16 % and other 16 %.

The financial occupancy rate during the period was 93 % (91).

Rental trends

Platzer has 536 rental contracts on premises. Its largest tenants include DB Schenker, the Swedish Migration Board, Mölnlycke Health Care, Gothenburg & Bohuslän County Insurance, Flexlink, Stampen, the National Courts Administration, AcadeMedia, Cochlear and Reinertsen.

The twenty biggest rental contracts accounted for 36 % of the letting value.

The average term remaining was 46 months. In addition, Platzer has signed a rental contract on a newbuild project scheduled for occupation in autumn 2015.

Apart from rental contracts on premises, there were parking agreements for garage and parking spaces, short-term parking facilities, and an agreement for advertising signs and masts with a total letting value of SEK 34 million.

Contract structure/Agreement per year of maturity 1)

No. Rental
income
Share %
2014 157 46 9
2015 132 113 23
2016 109 103 21
2017 84 83 16
2018 27 51 10
2019 8 31 6
2020- 19 75 15
Total 536 502 100
Multistorey
carpark/other
34
Minority -5
Total 531

1) Excl. rental contract for newbuild project.

CHANGES TO THE PROPERT Y PORTFOLIO

The year saw Platzer complete four property acquisitions totalling 32,641 sq.m, acquiring two properties during the first quarter: the office property Gullbergsvass 5:11, with lettable floorage of 6,455 sq.m, and 45 garage spaces from Stena Properties. Since being acquired, the property has been amalgamated by means of being merged with the previously owned property Gullbergsvass 5:10; the second was Högsbo 4:1, including 4,643 sq.m lettable floorage, acquired by Harry Sjögren. During the final quarter, two acquisitions were completed: the property Gullbergsvass 5:26, a new development including 16,735 sq.m premise space, acquired from Skanska Fastigheter Göteborg; and Tingstadsvassen 3:8, aka Centrumhuset in Backaplan, which included 4,808 sq.m and was acquired from AxFast.

During the year Platzer sold five properties totalling a combined 55,397 sq.m: all of Platzer's properties in Kärra, totalling 8,400 sq.m, and the property Skår 40:17 including 47,000 sq.m, which was sold to Liseberg in November.

Indu
strial/
ware
hou
Quarter Properties Area Segment Offices Shops sing Other Total
Acquisitions
1 Gullbergsvass 5:11 Gullbergsvass Central Gothenburg 6,089 252 114 6455
1 Högsbo 4:1 Högsbo West Gothenburg 1,310 510 2,823 4,643
4 Gullbergsvass 5:26 Gullbergsvass Central Gothenburg 14,989 1 746 16,735
4 Tingstadsvassen 3:8 Backaplan Gothenburg Other 3,966 842 4,808
32,641
Sales
2 Kärra 78:12 Kärra Gothenburg Other 1,825 1,825
2 Kärra 78:13 Kärra Gothenburg Other 440 1,825 2,265
2 Kärra 78:8 Kärra Gothenburg Other 250 666 1,893 2,809
2 Kärra 80:6 Kärra Gothenburg Other 225 1,273 1,498
4 Skår 40:17 Centre Central Gothenburg 8,890 38,110 47,000

Gullbergsvass 5:11, Kämpegatan 7, Gothenburg.

Tingstadsvassen 3:8, Krokegårdsgatan 5, Backaplan, aka Centrumhuset.

Högsbo 4:1, A Odhners gata 8/Olof Asklunds gata 24/Fältspatsgatan 1, Gothenburg.

Kärra 80:6, Trankärrsgatan 16, Göteborg, one of four properties sold to Eklandia Fastighets AB.

55,397

Gullbergsvass 5:26, "Tennet", Kilsgatan 4, Gothenburg.

Skår 40:17, Nellickevägen 2, Gothenburg, better known as Saab's gearbox factory.

PROPERTY INVENTORY

Indu
strial/
ware
No. Property Area Year built Offices Shops housing Other Total
Investment property
1 Balltorp 1:135 Mölndal 1989 5,515 515 377 6,407
2 Bagaregården 17:26 Gamlestaden 1941/2010 24,977 365 6,975 2,535 34,852
3 Bosgården 1:71 Mölndal 1988 4,687 56 4,743
4 Brämaregården 35:4 Backaplan 1984/1991 12,377 222 855 13,454
5 Forsåker 1:196 Mölndal 1955/2002 5,242 150 5,392
6 Fänkålen 2 Mölndal 1990 3,913 45 536 4,494
7 Gasklockan 2 Mölndal 1991/2010 1,482 3,394 4,876
8 Gullbergsvass 1:1 Gullbergsvass 1988/2013 15,996 15,996
9 Gullbergsvass 1:17 Gullbergsvass 1993/2011 5,400 5,400
10 Gullbergsvass 5:10 Gullbergsvass 1988 11,736 252 547 12,535
11 Gullbergsvass 5:26 Gullbergsvass 2001/2013 14,989 1,746 16,735
12 Gullbergsvass 703:53 Gullbergsvass 1991 9,000 9,000
13 Gårda 1:15 Gårda 1971/1992 9,672 9,672
14 Gårda 13:7 Gårda 2003 14,925 14,925
15 Gårda 16:17 Gårda 1986 15,101 168 564 15,833
16 Gårda 3:12 Gårda 1956/1998 3,503 3,503
17 Gårda 4:11 Gårda 1965/2002 7,464 433 7,897
18
19
Gårda 8:2
Högsbo 1:4
Gårda
Högsbo
1940/2007
1980
1,960
1,638
1,444 1,960
3,082
20 Högsbo 11:3 Högsbo 1960 400 1,257 1,657
21 Högsbo 11:5 Högsbo 1959 3,655 3,655
22 Högsbo 13:6 Högsbo 1992/1999/2013 6,196 1,657 7,853
23 Högsbo 2:1 Högsbo 1991/2009 6,300 6,300
24 Högsbo 27:8 Högsbo 1971/2009/2013 528 1,986 2,514
25 Högsbo 3:6 Högsbo 1964 4,831 19,588 722 25,141
26 Högsbo 3:9 Högsbo 1971 2,123 2,210 4,333
27 Högsbo 32:3 Högsbo 1974/2011 6,381 1,053 570 8,004
28 Högsbo 34:13 Högsbo 1981 493 1,287 1,780
29 Högsbo 39:1 Högsbo 1972 3,390 3,390
30 Högsbo 4:1 Högsbo 1965/1972 1,310 510 2,823 4,643
31 Högsbo 4:4 Högsbo 1962 2,670 3,718 6,388
32 Högsbo 4:6 Högsbo 1974 1,349 2,549 3,898
33 Livered 1:329 Kållered (Mölndal) 1962 13,937 13,937
34 Nordstaden 13:12 Centre 1929/1993 5,070 5,070
35 Nordstaden 14:1 Centre 1890/1993/2012 8,958 8,958
36 Nordstaden 20:5 Centre 1943 2,553 231 2,784
37 Solsten 1:110 Mölnlycke 1991 1,658 1,089 356 3,103
38 Solsten 1:132 Mölnlycke 2002 4,953 4,953
39 Stampen 4:42 Centre 2009 5,766 2,847 8,613
40 Stampen 4:44 Centre 1930/1994 14,681 14,681
41 Stigberget 34:12 Centre 1967/1999/2013 4,433 2,801 264 253 7,751
42 Stigberget 34:13 (50,3%) Centre 1969/2011 2,646 66 2,033 4,745
43 Tingstadsvassen 3:8 Backaplan 1991 3,966 842 4,808
44 Tingstadsvassen 4:3 Backaplan 1943/1986/2011 517 3,628 54 4,199
45 Älvsborg 178:9 Långedrag 1993 9,659 296 3,862 13,817
Total investment properties 243,093 7,986 58,112 58,540 367,731
Project property
46 Gårda 2:12 Gårda 1959 1,785 1,340 3,125
47 Gårda 3:14 Gårda 0
48 Högsbo 3:5 Högsbo 0
49 Högsbo 7:21 Högsbo 0
50 Högsbo 14:3 Högsbo 1967 3,255 277 3,532
51 Högsbo 757:118 Högsbo 0
52 Högsbo 757:121 Högsbo 0
53 Högsbo 757:122 Högsbo 0
Total project properties 5,040 1,340 277 - 6,657
TOTAL 248,133 9,326 58,389 58,540 374,388

OWNERS

Largest shareholders in Platzer Fastigheter Holding AB (publ) as at 31 December 2013

No. of A-class No. of B-class Propor
tion of
Propor
tion of
Sharehoulder shares shares No. of shares votes capital
Ernström & C:o 10,000,000 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 19,293,745 19,293,745 7.0 % 20.1 %
Länsförsäkringar fondförvaltning AB 5,508,099 5,508,099 2.0 % 5.8 %
Lesley Invest AB (inkl privat innehav) 2,771,490 2,771,490 1.0 % 2.9 %
Lannebo fonder 2,350,535 2,350,535 0.9 % 2.4 %
CGML IPB Client SK AC Sweden Treaty 2,000,000 2,000,000 0.7 % 2.1 %
Catella Fondförvaltning 1,598,500 1,598,500 0.6 % 1.7 %
Svolder AB 1,470,870 1,470,870 0.5 % 1.5 %
Other owners 20,466,705 20,466,705 7.4 % 21.4 %
Total (3,341 owners) 20,000,000 75,747,434 95,747,434 100 % 100 %

Business ratios per share

2013 Jan-Dec 2012 Jan-Dec
Equity, SEK 28,47 25,77
Long-term breakdown value (EPRA NAV), SEK 30,58 29,10
SE quotation price, SEK 27,00 -
Profit/loss after tax, SEK 1) 3,82 2,47
Profit from property management, SEK 2,16 2,05
Cashflow from ongoing operations, SEK 2,04 2,27
Dividend, SEK 2) 0,60 0,50
No. of shares as at accounting date, thousands 95,747 70,447
Average no. of shares, thousands 76,772 63,724

1) There is no dilutive effect as there are no potential shares. 2) Dividend proposed for 2013.

Platzer Fastigheter Holding AB (publ) was founded on 1 January 2008 by Ernström & C:o, Brinova Properties and Länsförsäkringar Göteborg and Bohuslän. The owners then formulated an owners' vision whereby "Platzer intends, through profitable growth, to attain a property holding of some SEK 10 billion and to offer an attractive investment alternative as well as achieve stock exchange listing". Since then Platzer has enjoyed seeing its property portfolio grow, partly financed through new issues: In 2011 Platzer had an infusion of SEK 150 million and during 2012 two issues were completed for a combined SEK 330 million. During 2013 Platzer took a step closer to its ownership vision as a result of the B-share having been listed on the NASDAQ OMX Stockholm, Mid Cap, since 29 November. In conjunction with this listing, ownership diversification was achieved through a new

issue totalling 25.3 million shares, providing the company with SEK 670 million before allowing for emissions costs of SEK 23 million. The number of shares at the turn of the year amounted to 20 million A-class shares (10 votes per share ) and 75.7 million B-class shares (one vote per share). Each share has a quota value of SEK 0.10. The number of shareholders at the turn of the year was 3,341. At the same time, the proportion of shares owned by shareholders registered outside of Sweden was 7 %.

2008 and 2009 was reported in accordance with IFRS

DEFINITIONS

FINANCIAL

Debt-equity ratio (leverage) Interest-bearing debts divided by equity.

Interest coverage ratio Profit/loss after financial income divided by interest costs.

Loan-to-value ratio Interest-bearing debts divided by value of the properties.

Solvency Equity divided by balance-sheet total.

Return on equity Profit/loss after tax as percentage of average equity.

PROPERTY RELATED

Dividend yield

Operating surplus as percentage of the properties' average value, converted to full-year value for interim period.

Net profit ratio

Operating surplus as percentage of rental income.

Financial occupancy rate

Rental income as percentage of letting value, where rental income is defined as rents charged together with extras, such as reimbursement for heating and property tax. Letting value is defined as rental income plus assessed open-market rent (rent excl. heating) for unlet spaces (in existing state).

Letting value, SEK/sq.m

Letting value divided by lettable floorage, where letting value is defined as rental income plus assessed open-market rent (rent excl. heating) for unlet spaces (in existing state).

SHARES

Business ratios per share

Equity and breakdown value are calculated on number of shares as at the accounting date, others on average number of shares.

Long-term breakdown value (EPRA NAV)

Equity posted according to balance-sheet with addback of interest derivative and deferred tax.

Platzer has signed a six-year rental agreement with the Swedish Social Insurance Agency relating to 7,300 sq.m, and a five-year agreement with the Gothenburg Region's Association of Local Authorities (GR) relating to 3,200 sq.m in the properties Gårda 3:12/Gårda 3:14 in Anders Personsgatan 2-8 in north Gårda. Including these lettings, 92 % of the premises area in the project has now been rented out, leaving 890 sq.m at ground-floor lobby level well suited to service, commercial and catering establishments.

Platzer Fastigheter Holding AB (publ) PO Box 211, SE-401 23 GOTHENBURG, SWEDEN Calling address: Anders Personsgatan 16 Tel. (+46)031-631 200, Fax (+46)031-631 201 E-mail [email protected], www.platzer.se Th e r e g i s t e r e d o f f i c e o f t h e B o a r d o f D i r e c t o r s : G o t h e n b u r g Organisation no: 556746-6437

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