Akelius Residential Prop. D

Quarterly Report • Apr 19, 2024

Akelius Residential Property AB (publ)

interim report

January to March 2024

	2024	2023	2023
	Jan–Mar	Jan–Mar	Jan–Dec
Property fair value, EUR million	5,766	6,111	5,686
Number of apartments	19,661	19,559	19,652
Residential rentable area, thousand sqm	1,195	1,192	1,196
Real vacancy rate, residential, percent	1.1	2.0	1.3
Vacancy rate, residential, percent	5.7	7.3	5.9
Rent potential, percent	22	22	21
Loan-to-value, percent	34	17	42
Cash sources to cash uses, percent	139	429	170
Interest coverage ratio, 12 months	8.1	62.5	21.7
Interest coverage ratio,
excluding realized value growth, 12 months	8.2	68.0	22.0
Credit rating, Standard & Poor's	BBB-	BBB	BBB
Credit rating, Fitch Ratings	BBB	BBB	BBB
Net asset value, EUR million	3,379	4,341	2,863
Rental income, EUR million	87	81	333
Like-for-like growth in rental income, percent	8.2	13.1	10.8
Net operating income, EUR million	47	40	173
Net operating income margin, percent	54.2	49.1	51.9
Like-for-like growth in net operating income, percent	19.4	15.1	18.0
EBITDA, EUR million	44	35	156
Profit or loss, EUR million	12	-33	-260

Alternative performance measurements on pages 30–32 and definitions on pages 35–37.

Dominion Plaza, Washington D.C. Acquired in 2022.

19.4 percent net operating income growth, like-for-like

Like-for-like growth in net operating income was 19.4 percent.

The main drivers are higher occupancy rate, increasing new lease levels, and completion of capital projects.

like-for-like vacancy rate decreases by 1.5 percentage points

Thanks to the completion of capital projects and purely focusing on property management,

the vacancy rate, like-for-like, decreased with 1.5 percentage points during the last twelve months down to 5.7 percent.

Vacancy rate excluding construction work and sales was 1.1 percent,

like-for-like rental income growth 8.2 percent

The trend with rental income growth continues.

Strong demand for Akelius' apartments coupled with higher occupancy rates and completion of capital projects are main drivers.

Additionally, the in-place rent, like-for-like, increased by 7.5 percent during the last twelve months.

capitalization rates start to stabilize

Capitalization rates went from 4.74 to 4.77 percent.

The negative value growth during 2024 was EUR 16 million, or 0.3 percent.

stronger financial position

Akelius repaid a EUR 500 million bond in March.

Funds to repay the bond came mainly from the financial guarantee from the main owner. Loan-to-value decreased during the quarter to 34 percent.

This is below the financial policy threshold of 35 percent.

With the reduced debt portfolio and the financial guarantee from the main owner, Akelius has strengthened its financial position.

Akelius has no upcoming bond redemptions until November 2024, when SEK 854 million bonds mature.

improving the properties

Akelius continues with further improvements of the portfolio.

Finishing large capital projects and reducing vacancies continue to pay off.

The results are strong rental income and net operating income growth.

Akelius monitors the property markets closely and is selective with transactions.

Ralf Spann, CEO and Board Member

property portfolio March 31, 2024

fair value properties EUR 5,766 million

				Fair value
		Rentable				Vacancy
		area,				rate,	Capitaliza
	Number of	thousand	EUR	EUR/	Proportion,	residential,	tion rate,
City	apartments	sqm	million	sqm	percent	percent	percent
London	2,355	103	964	9,356	17	3.8	4.43
Paris	1,541	52	432	8,365	7	18.0	3.90
Europe	3,896	155	1,396	9,025	24	9.4	4.25
Washington D.C.	3,064	248	846	3,412	15	10.0	5.54
New York	1,745	122	656	5,354	12	2.8	5.10
Boston	1,258	81	601	7,398	10	3.7	4.94
Austin	861	66	168	2,555	3	7.0	5.09
US	6,928	517	2,271	4,388	40	6.6	5.23
Toronto	4,287	243	1,111	4,575	19	1.5	4.42
Montreal	4,214	291	947	3,259	17	5.2	4.81
Ottawa	120	11	20	1,766	0	0.0	4.75
Quebec City	216	15	21	1,364	0	0.5	5.00
Canada	8,837	560	2,099	3,748	36	3.2	4.62
Total/
Average	19,661	1,232	5,766	4,679	100	5.7	4.77

property return 2.2 percent

capitalization rate 4.77 percent

	Capitalization	Discount
EUR million	rate	rate
Jan 1, 2024	4.74	6.73
Purchases	0.00	0.00
Sales	0.00	0.00
Like-for-like	0.03	0.03
Exchange
differences	0.00	0.00
Mar 31, 2024	4.77	6.76

change in value EUR ‑16 million

		Return,
	EUR million	percent
Cash flow	15	0.27
Required rate of
return	-31	-0.55
Sales	-	0.00
Purchases	-	0.00
Total change in
value	-16	-0.28

like-for-like growth

rental income 8.2 percent net operating income 19.4 percent

vacancy rate, residential, 5.7 percent

real vacancy rate, residential, 1.1 percent

net letting and upgraded apartments

development residential in-place rent

EUR million

debt maturities

EUR million per year

interest rate hedges

EUR million per year

fixed interest terms 4.5 years debt maturities 3.3 years

interest rate 1.25 percent

fixed interest term debt maturities 0

current interest and debt coverage capacity

		Earning
	Apr 2023–	capacity as at
EUR million	Mar 2024	Mar 31, 2024
Rental income	339	365
Operating expenses	-135	-137
Maintenance	-23	-23
Net operating income	181	205
Central administrative expenses	-16	-12
EBITDA	165	193
Other financial income and expenses	-2	-2
Adjusted EBITDA	163	191
Net interest expenses	-20	-36
Interest coverage ratio excluding realized value growth	8.2	5.3
Realized value growth	-2
Interest coverage ratio	8.1
Net debt as at Mar 31, 2024	2,015	2,015
Net debt / EBITDA	12.2	10.4

earning capacity

The earning capacity is based on the property portfolio and net debt as at March 31, 2024.

Rental income includes EUR 348 million in residential rental value as at April 1, 2024, EUR 14 million in rental income for commercial properties and parking, EUR ‑5 million in real vacancy for apartments,

and EUR 8 million in other income.

Residential rental value of EUR 348 million minus vacancy, plus recharge of operating expenses to tenants is equivalent to EUR 333 million in residential in-place rent.

Only interest expenses are included in earning capacity,

due to the sale of financial investments in the end of 2023.

^*) includes discontinued and continuing operations

EBITDA EUR 165 million interest coverage ratio 8.1

encumbrance properties

EUR million

unencumbered asset ratio

loans and hybrid bonds reported at amortized cost

	Mar 31	Mar 31	Dec 31	Dec 31
	2024	2024	2023	2023
	Carrying	Fair	Carrying	Fair
EUR million	value	value	value	value
Loans	2,859	2,572	3,354	3,012
Hybrid bonds	334	306	334	281
Total	3,193	2,878	3,688	3,293

financial instruments reported at fair value

	Mar 31	Dec 31
EUR million	2024	2023
Assets	894	907
Liabilities	10	56

Loans and hybrid bonds are recognized at amortized cost using the effective interest rate method.

Carrying value and fair value of interestbearing liabilities are excluding leasing.

The fair value of loans and derivatives are based on level 2 data in the fair value hierarchy.

The fair value of hybrid bonds are based on level 1 data.

Derivatives are measured continuously at fair value through profit or loss.

The investment in Castellum AB is measured at fair value through profit and loss based on level 1 data.

See additional information on page 21.

No transfers have taken place between the various hierarchical levels during the period.

London Paris

like-for-like properties

	London	Paris
Property portfolio
Fair value, EUR million	964	432
Capitalization rate, percent	4.43	3.90
Proportion upgraded apartments, percent	79	64
Residential rentable area, thousand sqm	94	47
Commercial rentable area, thousand sqm	9	5
Average apartment size, sqm	40	30
Walk score	84	97
Average rent residential	EUR/sqm/month	EUR/sqm/month
Total portfolio Apr 1, 2023	36.62	29.27
Exchange difference	1.03	-
Adjusted total portfolio Apr 1, 2023	37.65	29.27
Sales and ended units	-	-
Like-for-like Apr 1, 2023	37.65	29.27
Like-for-like change	3.06	0.80
- Change in percent	8.1	2.7
Like-for-like Apr 1, 2024	40.71	30.07
Purchases and new constructions	0.32	-
Total portfolio Apr 1, 2024	41.03	30.07
New lease level	47.08	35.08
Vacancy rate residential	Percent	Percent
Real vacancy rate	0.7	0.3
Apartments being upgraded	3.1	17.7
Vacancy rate	3.8	18.0

Austin New York

like-for-like properties

	Austin	New York
Property portfolio
Fair value, EUR million	168	656
Capitalization rate, percent	5.09	5.10
Proportion upgraded apartments, percent	100	60
Residential rentable area, thousand sqm	66	118
Commercial rentable area, thousand sqm	-	4
Average apartment size, sqm	76	68
Walk score	7	96
Average rent residential	EUR/sqm/month	EUR/sqm/month
Total portfolio Apr 1, 2023	18.01	34.66
Exchange difference	0.10	0.20
Adjusted total portfolio Apr 1, 2023	18.11	34.86
Sales and ended units	-	-
Like-for-like Apr 1, 2023	18.11	34.86
Like-for-like change	-0.17	0.90
- Change in percent	-0.9	2.6
Like-for-like Apr 1, 2024	17.94	35.76
Purchases and new constructions	-	-
Total portfolio Apr 1, 2024	17.94	35.76
New lease level	17.59	57.36
Vacancy rate residential	Percent	Percent
Real vacancy rate	7.0	0.3
Apartments being upgraded	0.0	2.5
Vacancy rate	7.0	2.8

Boston Washington D.C.

like-for-like properties

	Boston	Washington D.C.
Property portfolio
Fair value, EUR million	601	846
Capitalization rate, percent	4.94	5.54
Proportion upgraded apartments, percent	93	77
Residential rentable area, thousand sqm	79	243
Commercial rentable area, thousand sqm	2	5
Average apartment size, sqm	63	79
Walk score	91	84
Average rent residential	EUR/sqm/month	EUR/sqm/month
Total portfolio Apr 1, 2023	39.15	23.37
Exchange difference	0.23	0.14
Adjusted total portfolio Apr 1, 2023	39.38	23.51
Sales and ended units	-	-
Like-for-like Apr 1, 2023	39.38	23.51
Like-for-like change	2.04	0.82
- Change in percent	5.2	3.5
Like-for-like Apr 1, 2024	41.42	24.33
Purchases and new constructions	-	-
Total portfolio Apr 1, 2024	41.42	24.33
New lease level	44.35	25.06
Vacancy rate residential	Percent	Percent
Real vacancy rate	1.6	2.2
Apartments being upgraded	2.1	7.8
Vacancy rate	3.7	10.0

Toronto Montreal

like-for-like properties

	Toronto	Montreal
Property portfolio
Fair value, EUR million	1,111	947
Capitalization rate, percent	4.42	4.81
Proportion upgraded apartments, percent	63	57
Residential rentable area, thousand sqm	238	284
Commercial rentable area, thousand sqm	5	7
Average apartment size, sqm	56	67
Walk score	74	77
Average rent residential	EUR/sqm/month	EUR/sqm/month
Total portfolio Apr 1, 2023	18.10	14.44
Exchange difference	0.08	0.07
Adjusted total portfolio Apr 1, 2023	18.18	14.51
Sales and ended units	-	-
Like-for-like Apr 1, 2023	18.18	14.51
Like-for-like change	1.23	0.87
- Change in percent	6.8	6.0
Like-for-like Apr 1, 2024	19.41	15.38
Purchases and new constructions	-	0.03
Total portfolio Apr 1, 2024	19.41	15.41
New lease level	30.37	18.48
Vacancy rate residential	Percent	Percent
Real vacancy rate	0.1	1.1
Apartments being upgraded	1.4	4.1
Vacancy rate	1.5	5.2

Ottawa Quebec City

like-for-like properties

	Ottawa	Quebec City
Property portfolio
Fair value, EUR million	20	21
Capitalization rate, percent	4.75	5.00
Proportion upgraded apartments, percent	100	2
Residential rentable area, thousand sqm	11	15
Commercial rentable area, thousand sqm	-	-
Average apartment size, sqm	95	71
Walk score	3	68
Average rent residential	EUR/sqm/month	EUR/sqm/month
Total portfolio Apr 1, 2023	8.14	7.94
Exchange difference	0.04	0.03
Adjusted total portfolio Apr 1, 2023	8.18	7.97
Sales and ended units	-	-
Like-for-like Apr 1, 2023	8.18	7.97
Like-for-like change	0.73	0.61
- Change in percent	8.9	7.6
Like-for-like Apr 1, 2024	8.91	8.58
Purchases and new constructions	-	-
Total portfolio Apr 1, 2024	8.91	8.58
New lease level	10.83	10.70
Vacancy rate residential	Percent	Percent
Real vacancy rate	0.0	0.0
Apartments being upgraded	0.0	0.5
Vacancy rate	0.0	0.5

sustainability in all decisions

Akelius' focus areas

environment

• reduce energy and water consumption
• decarbonize the company
• reduce waste

governance

• enhance business ethics and compliance
• improve cyber security
• implement sustainable supply chain

social

• promote diversity and non-discrimination
• have healthy and safe tenants and employees
• ensure an attractive work environment

gas saving technologies

Four optimization devices, M2G cloud connect devices, were installed at the four boilers located in McMillan House property in London during 2023.

The device should reduce unnecessary firing on boilers and does also provide real time data.

After the project in McMillan House, the London team approved thirteen new projects to proceed with the M2G technology during the first quarter of 2024.

The potential gas savings during the first year are 194,801 KWh.

improvement in sustainability rating

Akelius received an update regarding ISS sustainability rating. The new rating is C,

with a performance score of 44.38.

This shows improvement as the score in 2023 was 38.84,

and in 2022 was 37.53.

Akelius employees

	Akelius	Mar 31
	target	2024	2023	2022	2021	2020
Number of employees	n/a	654	655	755	865	1,300
Gender pay ratio, percent	90-110	111	112	114	114	116
Annual sick leave, percent	≤2.0	3.5	2.3	1.9	1.5	1.9
Fatality cases	0	-	-	-	-	-
Injury rate*	0.00	0.00	0.07	0.06	0.25	0.14
Lost day rate*	0.00	0.00	0.00	0.00	0.96	2.60

^*) per 100,000 worked hours

consolidated income statement and comprehensive income

		2024	2023	2023
EUR million	Note	Jan–Mar 3 months	Jan–Mar 3 months	Jan–Dec 12 months
Rental income	1	87	81	333
Operating expenses	2	-34	-35	-136
Maintenance	2	-6	-6	-24
Net operating income	2	47	40	173
Central administrative expenses		-3	-4	-17
Other income and expenses		-	-1	-
EBITDA	3	44	35	156
Depreciation		-	-	-3
Unrealized revaluation of investment
properties		-16	-18	-582
Operating profit or loss		28	17	-429
Interest income	4	2	14	50
Interest expenses	4	-13	-13	-57
Interest expenses hybrid bonds	4	-2	-5	-14
Change in fair value of financial assets	4	-10	-12	264
Change in fair value of derivatives	4	71	-17	-67
Other financial income and expenses	4	-45	-8	45
Profit or loss before tax	5	31	-24	-208
Current tax	6	-2	1	-2
Deferred tax	6	-17	-10	-50
Profit or loss*		12	-33	-260
Items that may be reclassified to profit or loss
Translation differences	7	56	-84	-93
Tax on items that may be reclassified	7	-5	12	15
Other comprehensive income	7	51	-72	-78
Total comprehensive income*		63	-105	-338
Earnings per share, basic and diluted, EUR		0.00	-0.01	-0.04

^*) profit or loss and total comprehensive income are attributable in their entirety to the Parent Company's shareholders

note 1

rental income

Rental income was EUR 87 million (81), an increase of 7.6 percent compared to the same period in 2023.

Like-for-like growth in rental income was EUR 6 million (8) or 8.2 percent (13.1). The increase is mainly related to decreased vacancy and increased rent levels due to high demand in Akelius apartments.

3,760 rental contracts (3,923) with an annual rent of EUR 51 million (52) were renewed or renegotiated during the period. The new yearly rent is EUR 53 million (54), an increase of 4.0 percent (3.8).

The vacancy rate for residential units decreased by 0.2 percentage points to 5.7 percent (7.3),

compared to the end of 2023.

This is mainly due to an increased amount of completed apartment upgrades.

80 percent (73) of vacancy was due to upgrades.

The real vacancy rate decreased by 0.2 percentage points to 1.1 percent (2.0) during the period.

note 2

net operating income

Property expenses totaled EUR 40 million (41).

EUR 6 million (6) was attributable to maintenance,

corresponding to EUR 19 per square meter (19) per year.

Net operating income was

EUR 47 million (40).

Like-for-like growth in net operating income was 19.4 percent (15.1).

Like-for-like growth in net operating income was positively affected by the increase in rental income.

Net operating income margin was 54.2 percent (49.1).

note 3 EBITDA

EBITDA was EUR 44 million (35), an increase by 25.7 percent compared to the same period in 2023.

The increase is mainly related to growth in like-for-like rental income.

note 4

net financial items

Interest income was EUR 2 million (14) and interest expenses were EUR 13 million (13). Interest expenses includes net interest for interest rate derivatives of EUR 1 million, of which EUR 7 million refers to interest income.

Interest expenses related to hybrid bonds were EUR 2 million (5).

Revaluations of financial assets affected earnings by EUR ‑10 million (-12).

Revaluations of derivatives impacted earnings by EUR 71 million (-17).

Other financial income and expenses amounted to EUR -45 million (-8), and are mainly related to currency effects from derivatives, financial investments, and external loans.

note 5

profit or loss before tax

Profit or loss before tax was EUR 31 million (-24).

Profit or loss before tax was mainly affected by positive net operating income of EUR 47 million (40), negative unrealized changes of investment properties EUR -16 million (-18), and a positive financial net of EUR 3 million (-41).

note 6

tax

Reported tax in profit or loss totaled EUR -19 million (-9).

EUR -17 million (-10) refer to deferred tax, mainly due to utilization of tax losses in Parent Company and non-capitalized deferred tax assets.

note 7

other comprehensive income

Other comprehensive income was EUR 51 million (-72).

It mainly relates to net investments in foreign operations that are translated to EUR.

condensed consolidated statement of financial position

	Mar 31	Mar 31	Dec 31
EUR million Note	2024	2023	2023
Assets Investment properties 8	5,759	6,102	5,679
Owner-occupied properties 8	7	9	7
Right-of-use-assets	6	7	6
Tangible fixed assets	4	4	4
Derivatives	55	56	44
Deferred tax assets	-	49	22
Financial assets 9, 10, 12	817	1,991	855
Receivables and other assets	4	5	6
Total non-current assets	6,652	8,223	6,623
Financial assets 9, 10, 12	-	331	-
Receivables and other assets	36	38	27
Derivatives	22	17	8
Cash and cash equivalents 10, 12	27	238	74
Total current assets	85	624	109
Total assets	6,737	8,847	6,732
Equity and liabilities
Equity 11	3,398	4,401	2,833
Total equity	3,398	4,401	2,833
Unsecured loans 12	2,058	2,906	2,644
Secured loans 12	100	131	105
Hybrid bonds	334	650	334
Lease liabilities	5	6	5
Derivatives	2	18	11
Deferred tax liabilities	48	36	48
Provisions	2	-	1
Other liabilities	19	18	20
Total non-current liabilities	2,568	3,765	3,168
Unsecured loans 12	669	578	577
Secured loans 12	32	20	28
Lease liabilities	1	1	1
Derivatives	8	8	45
Provisions	1	3	2
Other liabilities	60	71	78
Total current liabilities	771	681	731
Total equity and liabilities	6,737	8,847	6,732

note 8

property fair value EUR 5,766 million

Fair value was EUR 5,766 million (6,111), which is equivalent to an average of EUR 4,679 per square meter (4,970).

The average capitalization rate was 4.77 percent (4.24), compared to 4.74 percent at the end of 2023.

Refer to table on page 5.

revaluation of properties EUR ‑16 million

The change in property value was EUR ‑16 million (‑18), or ‑0.3 percent (‑0.3). Refer to table on page 5.

property investments EUR 36 million

Investments in properties amounted to EUR 36 million (42). On an annual basis, this corresponds to EUR 116 per square meter (136). 12 percent (11) of the total investments referred to apartment upgrades.

note 9

financial assets

Financial assets decreased from EUR 855 million to EUR 817 million (2,322) during the period.

The investment in Castellum AB decreased by EUR 38 million.

EUR 10 million relates to change in fair value and EUR 28 million is due to negative currency effects.

At the end of the period, Akelius held 13.5 percent (13.4) of the shares outstanding in Castellum AB, at a fair value of EUR 817 million (469).

note 10

liquidity

Available funds in the form of cash equivalents, financial assets, and unutilized credit facilities totaled EUR 890 million (2,628).

Unutilized credit facilities amounted to EUR 46 million (68), with an average maturity of 1.1 years (1.0). Facilities intended to be kept are extended prior maturity.

The unutilized bilateral credit agreements are provided by 4 banks (5).

The fair value of the unencumbered properties was EUR 5,311 million (5,555).

note 11

equity ratio

Equity increased by 565 million to EUR 3,398 million (4,401) during the period. The change is mainly impacted by the share issue subscribed on March 5, 2024, which was approved on the Annual General Meeting on April 18, 2024.

The equity ratio including hybrid bond amounted to 55 percent (57).

D-shares

The number of ordinary shares of class D was 220,000,000, equivalent to EUR 117 million in equity, including the ongoing share issue.

Akelius Apartments Ltd, majority owner of Akelius Residential Property AB (publ), has purchased D-shares for EUR 11 million (12) during the period.

D-shares, including the ongoing share issue, represent 3.44 percent (3.69) of the total amount of shares in Akelius Residential Property AB (publ).

The closing price per D-share was EUR 1.644 (1.846) at the end of the period.

note 12

net debt EUR 2,015 million

Loans excluding hybrid bonds decreased by EUR 495 million during the period, to EUR 2,859 million (3,635).

The loan-to-value ratio decreased by 8 percentage points since the end of 2023 to 34 percent (17).

Unsecured debt includes 7 bonds (10).

Financial investments, including cash and cash equivalents, amounted to EUR 844 million (2,560). Net debt amounts to EUR 2,015 million (1,075).

maturities 3.3 years

Loans excluding hybrid bonds had an average maturity of 3.3 years (3.8), compared to 3.1 years at the end of 2023. EUR 701 million (598) mature within one year.

interest rate hedge 4.5 years

EUR 876 million (1,544) of the debt portfolio excluding hybrid bonds had a fixed interest rate term of more than five years.

On average, the underlying interest rate is secured for 4.5 years (4.9) for debt portfolio excluding hybrid bonds, compared to 4.1 years at the end of 2023.

average interest rate 1.25 percent

The average interest rate decreased from 1.38 percent to 1.25 percent (1.62) on debt portfolio excluding hybrid bonds during the period.

credit rating

Akelius holds a long-term issuer default rating of BBB with negative outlook by Fitch Ratings.

Akelius' senior unsecured bonds received the sector specific one-notch uplift to BBB+. Akelius' hybrid bonds are graded BBB-.

Standard and Poor's has assessed Akelius a BBB- rating with negative outlook. The rating for Akelius' hybrid bonds is BB.

unencumbered asset ratio 2.32

The unencumbered asset ratio was 2.32 (2.48), compared to 1.97 at the end of 2023.

consolidated statement of changes in equity

			Currency
	Share	Share	translation	Retained	Total
EUR million	capital	premium	reserve	earnings	equity
Balance at
Jan 1, 2023	348	3,662	132	364	4,506
Total comprehensive income
for the period	-	-	-72	-33	-105
Balance at
Mar 31, 2023	348	3,662	60	331	4,401
Total comprehensive income
for the period	-	-	-6	-227	-233
Share issue	6	162	-	-	168
Dividend	-	-1,503	-	-	-1,503
Balance at
31 dec, 2023	354	2,321	54	104	2,833
Balance at
Jan 1, 2024	354	2,321	54	104	2,833
Profit or loss for the period	-	-	-	12	12
Other comprehensive income	-	-	51	-	51
Total comprehensive
income for the period	-	-	51	12	63
Ongoing share issue*	19	483	-	-	502
Balance at
Mar 31, 2024	373	2,804	105	116	3,398

^*) Akelius Residential Property AB (publ) has an ongoing share issue of A-shares where unregistered share capital totaled EUR 19 million.

Equity is attributable in its entirety to the Parent Company's shareholders.

The share issue was approved at the Annual General Meeting on April 18, 2024.

consolidated statement of cash flows

	2024	2023	2023
	Jan–Mar	Jan–Mar	Jan–Dec
EUR million Net operating income	3 months	3 months	12 months
	47	40	173
Central administrative expenses	-3	-4	-17
Interest paid	-33	-31	-71
Interest received	2	12	51
Tax paid	-	-1	-3
Cash flow before changes in working capital	13	16	133
Change in current assets	-4	8	8
Change in current liabilities	2	13	6
Cash flow from operating activities	11	37	147
Investment in properties	-36	-42	-194
Acquisition of properties*	-3	-	2
Acquisition of financial assets	-	-20	-140
Acquisition of other assets	-	-1	-2
Sale of properties	-	-	5
Sale of financial assets	-	51	1,939
Cash flow from investing activities	-39	-12	1,610
Share issue	502	-	168
Loans raised	-	-	296
Repayment of loans	-501	-18	-923
Cash from derivatives	-15	23	61
Amortization leasing	-	-	-2
Dividend A-shares	-	-	-1,481
Dividend D-shares	-6	-6	-22
Cash flow from financing activities	-20	-1	-1,903
Cash flow for the period	-48	24	-146
Cash and cash equivalents at beginning of the period	74	217	217
Exchange differences in cash and cash equivalents Cash and cash equivalents at end of the	1	-3	3
period	27	238	74

^*) EUR -3 million pre-payment for one property

segment reporting

net operating income Jan–Mar 2024

EUR million	Rental income	Operating expenses	Maintenance	Net operating income
London	11	-2	-1	8
Paris	4	-3	-	1
Europe	15	-5	-1	9
New York	13	-6	-1	6
Washington D.C.	18	-7	-1	10
Boston	10	-3	-1	6
Austin	4	-2	-	2
US	45	-18	-3	24
Toronto	14	-6	-1	7
Montreal	13	-5	-1	7
Ottawa*	-	-	-	-
Quebec City*	-	-	-	-
Canada	27	-11	-2	14
Total	87	-34	-6	47

^*) Akelius owns one property in each city

net operating income Jan–Mar 2023

				Net
	Rental	Operating		operating
EUR million	income	expenses	Maintenance	income
London	9	-2	-1	6
Paris	4	-3	-	1
Europe	13	-5	-1	7
New York	12	-6	-1	5
Washington D.C.	17	-7	-1	9
Boston	9	-3	-1	5
Austin	4	-2	-	2
US	42	-18	-3	21
Toronto	14	-6	-1	7
Montreal	12	-6	-1	5
Ottawa*	-	-	-	-
Quebec City*	-	-	-	-
Canada	26	-12	-2	12
Total	81	-35	-6	40

^*) Akelius owns one property in each city

<-- PDF CHUNK SEPARATOR -->

segment reporting

total property return Jan–Mar 2024

				Total	Net operating
EUR million	Net operating income	Realized and unrealized revaluation	Total property return	property return, percent	income margin, percent	Property fair value
London	8	-6	2	0.7	69.0	964
Paris	1	1	2	2.2	37.5	432
Europe	9	-5	4	1.1	60.7	1,396
New York	6	-	6	3.7	48.0	656
Washington D.C.	10	-5	5	2.3	54.3	846
Boston	6	-4	2	1.5	59.5	601
Austin	2	-3	-1	-2.2	42.7	168
US	24	-12	12	2.2	52.6	2,271
Toronto	7	-2	5	2.1	53.5	1,111
Montreal	7	2	9	3.9	53.3	947
Ottawa	-	-	-	7.9	53.7	20
Quebec City	-	1	1	10.4	37.0	21
Canada	14	1	15	3.0	53.2	2,099
Total	47	-16	31	2.2	54.2	5,766

total property return Jan–Mar 2023

EUR million	Net operating income	Realized and unrealized revaluation	Total property return	Total property return, percent	Net operating income margin, percent	Property fair value
London	6	-8	-2	-0.7	65.6	949
Paris	1	-9	-8	-6.3	33.0	462
Europe	7	-17	-10	-2.6	56.1	1,411
New York	5	-	5	3.1	42.8	686
Washington D.C.	9	-	9	3.6	50.5	959
Boston	5	-	5	3.0	56.0	660
Austin	2	-	2	3.6	46.2	199
US	21	-	21	3.3	49.0	2,504
Toronto	7	-2	5	1.6	48.9	1,141
Montreal	5	1	6	2.3	43.7	1,014
Ottawa	-	-	-	3.8	41.8	20
Quebec City	-	-	-	0.7	0.0	21
Canada	12	-1	11	1.9	45.7	2,195
Total	40	-18	22	1.4	49.1	6,111

key figures

	Mar 31 2024	Dec 31 2023	Dec 31 2022	Dec 31 2021	Dec 31 2020
Equity
Equity, EUR million	3,398	2,833	4,506	7,049	5,374
Equity ratio, percent	50	42	50	57	43
Equity and hybrid bond ratio, percent	55	47	57	64	51
Return on equity, percent	2	-8	-8	52	0
Net asset value, EUR million	3,379	2,863	4,433	7,087	6,324
Net operating income*
Rental income, EUR million	87	333	303	212	190
Growth in rental income, percent	7.6	10.0	42.9	12.1	0.4
Like-for-like growth in rental income, percent	8.2	10.8	11.9	1.5	3.5
Net operating income, EUR million	47	173	148	99	91
Growth in net operating income, percent	18.7	16.7	49.6	8.6	5.4
Like-for-like growth in net operating
income, percent	19.4	18.0	18.9	-2.1	9.7
Net operating income margin, percent	54.2	51.9	48.9	46.8	48.2
Financing
Loan-to-value, percent	34	42	16	0	39
Unencumbered asset ratio	2.32	1.97	2.50	3.76	1.89
Interest coverage ratio, 12 months	8.1	21.7	8.8	63.2	3.3
Interest coverage ratio excluding realized
value growth, 12 months	8.2	22.0	9.6	2.8	2.5
Average interest rate, percent	1.25	1.38	1.20	1.51	1.95
Fixed interest term, years	4.5	4.1	5.1	5.4	5.0
Debt maturities, years	3.3	3.1	4.0	4.5	5.7
Properties
Number of apartments	19,661	19,652	19,545	17,770	44,443
Rentable area, thousand sqm	1,232	1,233	1,234	1,115	2,986
Rent potential, percent	22	21	22	25	24
Real vacancy rate, residential, percent	1.1	1.3	2.0	2.6	1.7
Vacancy rate, residential, percent	5.7	5.9	8.1	12.5	7.5
Turnover of tenants, percent	23	23	25	27	16
Fair value, EUR per sqm	4,679	4,613	5,001	5,399	4,066
In-place rent, all unit types, EUR million	345	337	317	258	473
Capitalization rate, percent	4.77	4.74	4.20	3.99	3.28
Like-for-like change in capitalization rate,
percentage points	0.03	0.55	0.21	-0.16	-0.38
Opening balance fair value, EUR million	5,686	6,173	6,020	12,139	11,964
Change in fair value, EUR million	-16	-582	-592	1,719	34
Investments, EUR million	36	194	205	360	381
Purchases, EUR million	-	-	457	588	172
Sales, EUR million	-	-5	-11	-9,138	-185
Exchange differences, EUR million	60	-94	94	352	-227
Closing balance fair value, EUR million	5,766	5,686	6,173	6,020	12,139

^{*) 2020} has been recalculated due to discontinued operations in 2021

condensed income statement for the Parent Company

	2024 Jan–Mar	2023 Jan–Mar	2023 Jan–Dec
EUR million	3 months	3 months	12 months
Central administrative expenses	-1	-2	-4
Operating profit or loss	-1	-2	-4
Result from shares in subsidiaries	-	-	-357
Financial income	48	75	280
Financial expenses	-36	-86	-107
Change in fair value of financial assets	-10	-12	264
Change in fair value of derivatives	71	-17	-67
Profit or loss before appropriations	72	-42	9
Appropriations	-	-	7
Profit or loss before tax	72	-42	16
Tax	-19	-	-29
Profit or loss	53	-42	-13

The Parent Company has no items in other comprehensive income.

condensed balance sheet for the Parent Company

	Mar 31	Mar 31	Dec 31
EUR million	2024	2023	2023
Assets
Shares in Group companies	3,116	2,418	3,116
Receivables from Group companies	2,386	3,578	2,321
Financial assets	817	1,991	855
Derivatives	55	56	44
Deferred income tax assets	-	48	18
Total non-current assets	6,374	8,091	6,354
Receivables from Group companies	11	11	10
Financial assets	-	331	-
Derivatives	22	16	8
Prepaid expenses and accrued income from Group
companies	5	7	-
Other assets	5	11	2
Cash and cash equivalents	8	144	56
Total current assets	51	520	76
Total assets	6,425	8,611	6,430
Equity and liabilities
Restricted equity	376	351	357
Non-restricted equity	2,843	3,620	2,308
Total equity	3,219	3,971	2,665
Interest-bearing liabilities	800	1,964	1,386
Interest-bearing liabilities from Group companies	1,695	1,977	1,695
Derivatives	2	18	11
Provisions	1	-	1
Total non-current liabilities	2,498	3,959	3,093
Interest-bearing liabilities	668	578	577
Interest-bearing liabilities from Group companies	1	49	2
Derivatives	8	8	45
Provisions	-	1	-
Other liabilities	27	41	32
Other liabilities from Group companies	4	4	16
Total current liabilities	708	681	672
Total equity and liabilities	6,425	8,611	6,430

alternative performance measures

Calculation of alternative key figures using guidelines published by the European Securities and Markets Authority.

net asset value and loan-to-value ratio

	Mar 31	Mar 31	Dec 31
EUR million	2024	2023	2023
Equity	3,398	4,401	2,833
Deferred tax	48	-13	26
Derivatives	-67	-47	4
Net asset value	3,379	4,341	2,863
Total interest-bearing liabilities	3,193	4,285	3,688
Hybrid bonds	-334	-650	-334
Cash and cash equivalents	-27	-238	-74
Financial assets	-817	-2,322	-855
Net debt	2,015	1,075	2,425
Total assets	6,737	8,847	6,732
Cash and cash equivalents	-27	-238	-74
Financial assets	-817	-2,322	-855
Net assets	5,893	6,287	5,803
Loan-to-value ratio, percent	34	17	42

average interest rate

Average interest rate	1.25	1.62	1.38
Interest cost based on interest at end of period	36	59	46
Interest-bearing liabilities excluding hybrid bonds	2,859	3,635	3,354
EUR million	2024	2023	2023
	Mar 31	Mar 31	Dec 31

liquidity

	Mar 31	Mar 31	Dec 31
EUR million	2024	2023	2023
Cash and cash equivalents	27	238	74
Unutilized credit facilities	46	68	47
Financial assets	817	2,322	855
Liquidity	890	2,628	976

alternative performance measures

unencumbered asset ratio

	Mar 31	Mar 31	Dec 31
EUR million	2024	2023	2023
Unencumbered properties	5,311	5,555	5,232
Right-of-use-assets	6	7	6
Tangible fixed assets	4	4	4
Deferred tax assets	-	49	22
Financial assets	817	2,322	855
Receivables and other assets	40	43	33
Derivatives	77	73	52
Unencumbered assets	6,255	8,053	6,204
Unsecured loans	2,727	3,484	3,221
Cash and cash equivalents	-27	-238	-74
Net unsecured senior debt	2,700	3,246	3,147
Unencumbered asset ratio	2.32	2.48	1.97

equity

	Mar 31	Mar 31	Dec 31
EUR million	2024	2023	2023
Comprehensive income for the period	63	-105	-338
Opening balance equity	2,833	4,506	4,506
Return on equity, percent	2	-2	-8
Equity	3,398	4,401	2,833
Hybrid bonds	334	650	334
Equity and hybrid bonds	3,732	5,051	3,167
Total assets	6,737	8,847	6,732
Equity ratio, percent	50	50	42
Equity and hybrid capital ratio, percent	55	57	47

development of EBITDA

	Mar 2023-
EUR million	Mar 2024
EBITDA, Mar 31, 2023	35
Like-for-like rental income	7
Like-for-like property costs	1
Like-for-like net operating income	8
Purchase and sales net operating income	-
Exchange differences	-1
Central administrative expenses	1
Other income and expenses	1
EBITDA, Mar 31, 2024	44

alternative performance measures

rental income and net operating income growth for like-for-like properties

	2024	2023	Growth,
EUR million	Jan–Mar	Jan–Mar	percent
Rental income	87	81	7.6
Service income	-1	-1
Exchange differences	-	-
Like-for-like rental income	86	80	8.2
Net operating income	47	40	18.7
Purchases and sales	-	-
Exchange differences	-	-
Like-for-like net operating income	47	40	19.4

realized value growth

Realized value growth	-	-	-2
Accumulated investments	-	-	-2
Acquisition costs	-	-	-5
Proceeds from the sale of properties	-	-	5
EUR million	Jan–Mar	Jan–Mar	Jan–Dec
	2024	2023	2023

other information

basis of presentation

The Akelius Residential Property Group's interim report has been prepared in accordance with IAS 34, Interim Financial Reporting and the Swedish Annual Accounts Act.

The financial statements of the Parent Company, Akelius Residential Property AB (publ), corporate identity number 556156-0383,

have been prepared in accordance with the Swedish Annual Accounts Act and the accounting standard RFR 2, Accounting for Legal Entities.

Disclosures in accordance with IAS 34, Interim Financial Reporting are submitted both in notes and in other sections of the interim report.

The figures in this interim report have been rounded,

while the calculations have been made without rounding.

As a result, certain tables and key figures may appear not to add up correctly.

risks and uncertainties

The Group is impacted by various types of risks.

Operational risks are limited by concentrating the property portfolio to residential properties in metropolitan areas. Strong residential rental markets in Akelius' cities reduce the risk of long-term vacancies on aggregated level.

To reduce risk or variations in cash flow further, interest rates are secured on a longterm basis.

Access to capital from a large number of banks, through the capital market, and the financial guarantee from Akelius Apartments Ltd mitigates the refinancing risk.

Akelius' currency risk is mitigated by interest-bearing debt in the same currencies as the properties that Akelius holds or intends to hold.

Akelius also uses derivatives to obtain a desired currency position.

The Group is impacted by external risks, for example, new rent regulations, climate risks, pandemics, and war.

These risk areas can impact the business negatively both in the long- and short-term.

accounting principles

Accounting principles can be found in Akelius annual report 2023.

new and amended IFRS standards adopted by the EU applied as at January 1, 2024

New and amended IFRS standards that came into effect after January 1, 2024, have not had any material impact on the Group's financial reports.

cash flow

Operating cash flow before change in working capital was EUR 13 million (16).

Cash flow from investing activities was EUR ‑39 million (‑12).

On average, upgrades can be stopped within a three-month period.

Cash flow from financing activities was EUR ‑20 million (‑1).

other information

Parent Company

On March 5, 2024, Akelius subscribed class A ordinary shares for EUR 502 million with the support of a board resolution.

The share issue was approved by the annual general meeting held on April 18, 2024.

Financial income mainly includes interest income.

Financial expenses mainly include interest expense and financial exchange differences.

The profit or loss before tax was EUR 72 million (‑42).

Annual General Meeting 2024

The Annual General Meeting was held on April 18, 2024.

The resolutions are available on the Company's website, www.akelius.com.

related party transactions

Akelius Apartments Ltd has previously issued a financial guarantee to Akelius Residential Property AB, which has been used during the period to repay a bond of EUR 500 million. Capital of EUR 502 million has been obtained from the owners through the ongoing share issue, of which EUR 426 million is connected to the financial guarantee.

Net administration costs to related parties amounted to EUR 1 million (1). This is reported as central administrative expenses in the income statement.

Net debt to related parties was EUR - million (-). All transactions are carried out on market terms.

The circle of related parties has not changed significantly since the annual report 2023.

significant events after the reporting period

Akelius terminated its credit rating agreement with Fitch on April 5, 2024. Fitch was added in 2021, before the disposal of Akelius property portfolios in Sweden, Denmark, and Germany. Akelius continues to be rated under the credit rating agreement with Standard & Poor's.

Ralf Spann CEO and Board Member

Stockholm, April 19, 2024 Akelius Residential Property AB (publ)

This interim report has not been reviewed by the company's auditors.

definitions

adjusted EBITDA

EBITDA plus other financial income and expenses.

Shows the results excluding interest expenses and changes in the value of assets and liabilities.

annual property return

Net operating income plus unrealized and realized changes in the value of properties on an annual basis in relation to the fair value of the properties at the beginning of the year.

Illustrates the total return on the property portfolio.

average interest rate

Average interest rate on the total interest-bearing liabilities, excluding hybrid bonds, at period end.

This key figure shows financial risk.

capitalization rate

The rate of return used in assessing the terminal value of property in fair value assessment.

cash sources

Cash sources include liquidity, contracted sales, and profit before tax and revaluation.

cash uses

Cash uses include investments, contracted purchases, and short-term loans.

debt coverage capacity

Net debt in relation to EBITDA. Net debt in relation to EBITDA including realized change in value.

Shows the number of years it takes for the company to pay off its debt with current earnings.

debt maturities, years

Volume-weighted remaining term of interest-bearing loans and derivatives on the balance sheet date.

Illustrates the company's refinancing risk.

discontinued operations

A discontinued operation is a component of an entity that either has been disposed or is classified as held for sale and represents a geographical area.

discount rate

Rate of return used in assessing the present value of future cash flow and terminal value in the fair value assessment of properties.

earning capacity

The earning capacity is based on the property portfolio at the balance sheet date and the portfolio's gross rent, real vacancy, estimated operating expenses, maintenance costs,

and central administrative expenses during a normal year.

Net interest is based on the interest rate for net debt and investments at the balance sheet date.

The exchange rate at closing balance is used.

No tax has been calculated as it mainly relates to deferred tax that does not affect the cash flow.

Earning capacity is not a forecast for the coming twelve months.

It contains no estimates of rent, vacancy, currency exchange, future property purchases and sales, or interest rate changes.

EBITDA

Net operating income plus central administrative expenses, and other income and expenses.

Facilitates the analysis of current operating profit.

equity ratio

Equity in relation to total assets. Highlights the company's financial stability.

financial assets

Holdings in listed debt securities and equity securities with assessed high creditworthiness.

Included in the calculation of liquidity.

gender pay ratio

Calculated by dividing the average pay of male employees by the average pay of female employees.

Based on basic salaries and other taxable remuneration paid directly to employees.

definitions

income return

Net operating income on an annual basis in relation to the fair value of properties at the beginning of the year.

Measures the yield on the property portfolio.

injury rate

Refers to the frequency of injuries, relative to the total time of 100,000 hours worked.

in-place rent

Contracted rent excluding rental discounts and temporary charges.

interest coverage ratio

Adjusted EBITDA plus realized value growth for the latest rolling 12-month period in relation to net interest expenses for the latest rolling 12-month period. Illustrates the company's sensitivity to interest rate changes.

interest rate hedge

Volume-weighted remaining term of interest rates on interest-bearing loans and derivatives at the balance sheet date. Illustrates the company's sensitivity to interest rate changes.

liquidity

The liquidity reserve consists of cash and cash equivalents, unutilized credit facilities, and financial assets that can be liquidized within three working days.

like-for-like properties

Properties owned during comparing periods. Properties acquired or sold during any of the comparing periods are excluded. Facilitates the analysis and comparison between different periods as properties not included in all periods are excluded.

loan-to-value ratio

Net debt divided by net assets. The key figure shows financial risk.

lost day rate

Refers to the impact of occupational accidents and diseases relative to the total time of 100,000 hours worked.

net asset

Total assets minus pledged cash, cash and cash equivalents, and financial assets. Used to illustrate the company's net assets.

net asset value

Equity, deferred tax, and derivatives. Used to highlight the company's long-term capital that is not interest-bearing.

net debt

Interest-bearing liabilities excluding leasing, less subordinated debt, cash and cash equivalents, pledge cash assets, and financial assets.

Used to facilitate analysis of the company's real indebtedness.

net interest expenses

Total interest expenses, including net interest of interest derivatives, less interest on subordinated debt, one-off financing charges and other income payable on cash and cash equivalents, and financial assets. Used to facilitate analysis of the company's interest results.

net letting

The sum of agreed contracted annual rents for new lettings for the period less terminated annual rents. Demonstrates the effect of the vacancy development illustrated in annual rent.

net operating income

Rental income less property costs. Highlights the ongoing earning capacity from property management.

net operating income margin

Net operating income in relation to rental income.

Highlights the ongoing earning capacity from property management.

other financial income and expenses

This item includes change in fair value of derivatives, change in fair value of hybrid bonds, dividend from external shares, currency effects on external loans, and administrative finance cost.

definitions

other income and expenses

Items from secondary activities such as gains on disposals of fixed assets other than investment properties, income and expenses from temporary services rendered after the sale of properties.

Summarizes income and expenses from business operations ancillary to the main business operations.

property costs

Includes direct property costs, such as operating expenses, utility expenses, maintenance costs, and property taxes.

property portfolio

Investment properties, owner-occupied properties, and investment properties classified as assets held for sale.

realized value growth

Proceeds from sale of investment properties minus acquisition costs, accumulated investments and costs of sale.

This item demonstrates the actual result of sales measured from the acquisition to sale.

real vacancy rate

Total number of vacant apartments less number of vacant apartments due to renovation work or planned sales, in relation to the total number of apartments.

Real vacancy is measured on the first day after the period end.

This rate facilitates the analysis of long-term vacancy for the company.

renewed and renegotiated rental contracts

All changes in rental levels for remaining tenants.

Highlights changes in contracts with existing customers.

rent potential

New lease level per area the last 12 months divided by the rent per area the last day of the period for all occupied apartments.

rental income

Rental value less vacancies and rent discounts.

rental value

12 months' rent for apartments, including a market rent for vacant apartments.

return on equity

Comprehensive income divided by opening balance equity.

Shows the return offered on the owners' invested capital.

sales and ended units

Sales or split of an apartment where one apartment object is ended and two new ones are created.

unencumbered asset ratio

Unencumbered assets divided by unsecured loans minus subordinated debt, cash and cash equivalents.

Used to assess unencumbered assets in relation to unsecured senior interest-bearing debt.

vacancy rate

Number of vacant apartments in relation to total number of apartments.

Vacancy rate is measured on the first day after the period end.

value growth

Changes in value of investments properties excluding investment and currency changes. Demonstrates value changes of properties adjusted for currency effects and capital spent.

walk score

Rating from 0 to 100 for how easy it is to carry out daily errands without a car, where 100 is the best.

Walk score is provided by Walkscore.com and is disclosed in order to rate the location of the properties.

Head office, Sweden

visiting address, Engelbrektsgatan 9–11 114 32 Stockholm Postal address, Box 5836 102 48 Stockholm +46 8 566 130 00 akelius.se

Canada

533 College Street Toronto M6G 1A8 +1 844 253 5487 akelius.ca

UK

25 Hosier Lane London EC1A 9LQ +44 800 014 8579 akelius.co.uk

France

37‒41 Rue du Rocher 75008 Paris +33 805 081 163 akelius.fr

US

300 A Street Boston, MA 02210 +1 857 930 39 00 akelius.us

Akelius in brief

apartments for metropolitans

Akelius' apartments are located in metropolitan cities, such as Paris, London, Toronto, Montreal, Ottawa, Quebec City, New York, Boston, Washington D.C., and Austin.

better living

Akelius restores and upgrades existing properties with a long-term perspective.

Akelius continuously improves the quality of the properties to provide families and individuals a better living.

acquire via cherry-picking

Akelius prefers to make many smaller acquisitions by cherry-picking properties that are exactly right, rather than a few large portfolio acquisitions with partial right properties.

strong capital structure, low refinancing risk

Akelius' well diversified capital market activities include listed senior unsecured bonds in various currencies, hybrid bonds, and listed ordinary shares of class D. The D-shares are publicly traded on Nasdaq First North Growth Market Stockholm with ownership spread across nine thousand shareholders.

sustainability is part of all decisions

One of Akelius' main sustainability goals is to align with climate neutrality on reduction of carbon emissions in scope 1, 2, and 3 by the end of 2050.

Akelius' main priorities include promoting a green portfolio, a safe environment for employees and tenants, and using ethical business practices.

financial calendar

interim report Jan–Jun 2024 July 19, 2024

interim report Jan–Sep 2024 October 25, 2024