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Catena — Interim / Quarterly Report 2009
Aug 19, 2009
2901_ir_2009-08-19_90931cbd-4f8a-4ab9-b65d-e38a06549441.pdf
Interim / Quarterly Report
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INTERIM REPORT JANUARY – JUNE, 2009
Motor Trend – new tenant in Kungsbacka
.
Catena shall own, effectively manage and actively develop commercial real estate in prime locations that offer the potential to generate steadily growing cash flow and healthy value growth. Catena's overriding objective, based on its focused orientation, is to provide shareholders with a favorable, long-term total return by being one of the leading players focusing on commercial real estate in a number of strategic locations.
INTERIM REPORT JANUARY – JUNE, 2009
- Rental revenue during the period totaled SEK 99.8 M (93.1).
- Income from property management amounted to SEK 53.9 M (43.0), or SEK 4.66 per share (3.72).
- Profit before tax for the period was SEK 49.8 M (29.6).
- Profit after tax for the period amounted to SEK 38.0 M (20.8), or SEK 3.29 per share (1.80).
- Realized change in value included in profit before tax amounted to SEK 3.2 M (4.3)
- Unrealized change in value amounted to a loss of SEK 7.3 M (loss:17.7), for which property accounts for a loss of SEK 1.9 M (loss: 27.1) and derivatives for a loss of SEK 5.4 M (profit 9.4).
- Investments in existing portfolio amounted to SEK 32 M (63) during the period.
Peter Hallgren, President and CEO:
- Catena's earnings trend remained strong. Profit for the first six months of 2009 was SEK 38 million, up 83% compared with the year-earlier period. Profit from management operations was also strong and rose 25% to SEK 53.9 million.
- Despite the recession, rental operations were successful, including the signing of an eight-year lease for the largest vacant property in the portfolio, situated in Copenhagen.
- The operation in Norway was reorganized and outsourced to external property managers. Parts of the operation in Stockholm were also reorganized. Cost savings are estimated at approximately SEK 3 million/year. These actions will begin having an impact from the third quarter of 2009.
- Catena has a historically high interest coverage ratio of 3.2 times. Direct yield amounted to 7.3%.
FOCUS ON COMMERCIAL REAL ESTATE
Catena is a real estate company that focuses on properties in external retailing locations. The real estate portfolio is located in four growth regions in the Nordic countries: Stockholm, Göteborg, Öresund and Oslo.
SUMMARY OF STRATEGY AND DIRECTION
Catena shall:
- Actively manage the real estate portfolio, focusing on stimulating long-term customer relationships by offering attractive premises in close cooperation with our tenants.
- Acquire commercial properties with good potential to achieve long-term growth and stable revenue.
- Actively improve and develop the real estate portfolio by identifying and implementing value-adding measures that increase the properties' attractiveness and yield, with due consideration of risk.
- Divest properties for which the potential to create additional value growth is deemed limited.
FINANCIAL TARGETS
Over a business cycle, Catena aims to achieve the following targets:
- Return on shareholders' equity that exceeds the risk-free interest by not less than 5 percentage points1 .
- Interest coverage ratio not less than 1.75.
- Equity/assets ratio not lower than 25% and not higher than 35%.
DIVIDEND POLICY
Long-term, Catena's dividend shall amount to 75% of the income from property management2 after tax3 .
REVENUES, EXPENSES AND EARNINGS
The figures in parentheses show the corresponding period for the preceding year.
GROUP
Rental revenue
Rental revenue amounted to SEK 99.8 M (93.1). The increase from the preceding year is due primarily to upward indexation, new rental leases and higher rental revenue from remodeling for tenants. Some 87.2 percent (90.9) of rental revenue derives from the Bilia Group.
The revenue-based occupancy rate totaled 96.9 percent (98.6) on July 1, 2009. The total rental value of vacant premises was estimated to amount to an annual SEK 6.5 M (2.7). The average lease term was 8.8 years (9.7).
Property expenses
Property expenses totaled SEK 13.4 M (12.6). Of total property expenses, operating expenses increased by SEK 0.5 M compared to year 2008. Repair and maintenance expenses decreased by SEK 0.2 M compared to the preceding year. Property tax and leasehold fees rose SEK 0.3 M and SEK 0.1 M respectively. Property administration increased SEK 0.1 M compared with the preceding year.
Operating surplus
The operating surplus for the period was SEK 86.4 M (80.5).
Other operating revenues
Other operating revenues of SEK 1.0 M (3.2) consist of consulting fees of SEK 0.1 M (0.5), and invoicing forwarded to tenants in respect of work completed, in the amount of SEK 0.4 M (2.7) and sales of company cars SEK 0.5 M (-).
Other operating expenses
Other operating expenses consist of costs for work that were passed on to tenants in the amount of SEK 0.4 M (2.7), consulting fees of SEK 0.3 M (0.5) and costs for sold company cars SEK 0.2 M (-)
1 Risk-free interest is defined as interest on a five-year Swedish Government bond.
2 Profit after financial items excluding realized and unrealized changes in value.
3 Profit after financial items charged with 26,3% standard tax.
Central administration
Expenses relating to central administration totaled SEK 9.0 M (9.2). This item includes costs for Group Management and other central functions.
Net financial items
Net financial items amounted to an expense of SEK 23.6 M (28.3). The annual average interest rate, including derivative instruments, was 2.80 percent (4.77) on the closing date. Financial instruments limit the impact of interestrate movements on the Group's borrowing costs. During the period, interest paid was capitalized in the amount of SEK 0.4 M (0.7) for current construction projects.
Financial items
| 2009 | 2008 | 2009 | 2008 | |
|---|---|---|---|---|
| SEK M | April-June | April-June | Jan.-June | Jan.-June |
| Interest income | 0.1 | 0.8 | 0.9 | 1.1 |
| Interest expenses | -10.4 | -15.1 | -24.5 | -28.3 |
| Net exchange rate fluctuations, realised | 0.0 | 1.0 | 0.0 | -1.1 |
| Net financial items | -10.3 | -13.3 | -23.6 | -28.3 |
Income from property management
Income from property management totaled SEK 53.9 M (43.0).
Changes in value
Properties
The Group's Swedish, Danish and Norwegian properties were internally valued at closing date using externally obtained information on the Swedish, Danish and the Norwegian property markets. The internal rate of return on net operating income and the yield applied in the calculation of residual value (residual value yield) were nearly unchanged in Sweden, Denmark and Norway. The internal rate of return on net operating income varies from 7.5 to 10.2 percent and for the residual value yield from 6.50 to 9.75 percent. Refer to Catena's Annual Report for 2008 for more detailed information on the valuation methods.
Change in book value of the properties
| 2009 | 2008 | |
|---|---|---|
| SEK M | Jan.-Jun. | Jan.-Jun. |
| Book value at beginning of the period | 2,354 | 2,479 |
| Value changes | -2 | -27 |
| Investments in existing portfolio | 32 | 63 |
| Investments in new properties | - | 8 |
| Currency effect | 36 | -3 |
| Book value at the end of the period | 2,420 | 2,520 |
Financial derivatives
Catena deploys interest swaps to achieve the interest rate structure stipulated in the Group's finance policy. The value of interest-rate swaps increases or decreases in line with the divergence in the interest rate from the corresponding market interest rate and with the remaining time to maturity. The unrealized value of the aforementioned interest-rate swaps resulted in a deficit of SEK 25.4 M (profit: 23.1) on the closing date, of which, the change in value for the period resulted in a decrease of SEK 5.4 M (profit: 9.4). The unrealized changes of value have no impact on the cash flow statement.
Value change
As a result of its property holdings in Norway and Denmark, the Group is exposed to the currencies of these countries. In an effort to reduce this exposure, the Group raises loans denominated in the currency of each country.
Taxes
Current tax paid for the period amounted to SEK -0.4 M (-7.8) and deferred tax to a loss of SEK 11.4 M (loss: 1.0). Catena will not be affected by the tax verdicts involving the property sector tax that were issued by the Supreme Administrative Court in June 2009, since Catena has not implemented any transactions of the type reviewed by the Supreme Administrative Court.
Profit after tax for the period
The profit after tax for the period totaled SEK 38.0 M (20.8).
Other comprehensive income for the period
Other comprehensive income for the period amounted to SEK 13.5 M (0.4) and comprised of revaluation of internal balance downward by SEK 5.5 M (gain: 1.5) and an increase of SEK 19.0 M in translation reserve (decline: 1.1).
Total comprehensive income for the period
The comprehensive income of the period amounted to SEK 51.5 M (21.2).
RISKS AND UNCERTAINTY FACTORS
General
Catena is exposed to a number of risks that may affect the company's business and earnings, as well as the value of property. Through its holdings of properties in Denmark and Norway, the income statement and balance sheet can also be affected by fluctuations in the currencies of these countries against the Swedish krona. Included among other risks are risks in leases, changes in operation and maintenance expenses, interest and financing risks, valuation of properties and taxes. Uncertainty in the financial sphere and the recession in the automotive industry have adversely impacted on Catena's operations mainly regarding changes of valuation of the properties of the group.
Value change
For quarterly financial reports, the Group's investment properties are generally valued internally, with externally obtained yield requirements. For annual reports, valuation is external. The same valuation principles were used for the half-year report as for year-end 2008. Property valuation is linked with assumptions about the future, meaning that the value interval can amount to +/- 5-10 percent at the property level.
The value of the Group's interest swaps is obtained externally. The value of these instruments varies with the agreed interest rate and market interest rate and with exchange rate fluctuations.
Beyond that stated in this interim report, no significant changes have occurred compared with that stated in the annual report.
For additional information about risks and uncertainty factors, refer to Catena's 2008 Annual Report, pages 20-21 and pages 66-67.
Parent Company
The Parent Company is exposed to the aforementioned risks through liabilities to foreign subsidiaries, loans and financial derivatives.
PARENT COMPANY
The operations of the Parent Company, Catena AB, primarily consist of Group-wide functions and management of the Group's subsidiaries.
The Parent Company's operating revenue is 100 percent (100) derived from billing for internally provided services.
Current earnings capacity
With the aim of providing a current view of the Catena Group's earnings capacity regarding income from property management on a 12-month basis, the income statement below was prepared. It is important to note that this income statement is not to be equated with a forecast. For example, the income statement does not contain any assessments regarding future occupancy rate, rent and interest-rate trends or changes in value.
Earnings capacity on a 12-month basis at June 30, 2009 has been determined in accordance with the following:
- Rental revenue is rental revenue as of July 1, 2009 on an annual basis with the addition for estimated market rent for vacant premises.
- Property expenses pertain to operating and maintenance expenses, property taxes and leasehold fees with the addition of property administration based on actual outcome in the past year adjusted for holding period.
- Central administration has been based on actual outcome for the most recent 12 months.
- Net financial items have been calculated based on interest-bearing liabilities and assets. Expenses for interest-bearing liabilities are based on the Group's average interest-rate level at June 30, 2009.
- Other operating revenues/expenses have not been taken into account.
Current earnings capacity
| 2009 | 2008 | |
|---|---|---|
| SEK M | June 30 | Dec. 31 |
| Rental value | 208 | 205 |
| Vacancies | -7 | -7 |
| Rental income | 201 | 198 |
| Property costs | -27 | -26 |
| Net operation income | 174 | 172 |
| Central administration | -17 | -18 |
| Net financial items | -38 | -66 |
| Income from property management | 119 | 88 |
PROPERTIES
The Group's real estate portfolio consists of commercial premises located in the Stockholm, Gothenburg, Öresund and Oslo regions.
On June 30, 2009, the real estate portfolio consisted of 31 properties, of which five are held on leasehold, with a rentable area of 233,930 square meters.
The properties are booked at a carrying amount of SEK 2,420 M, which corresponds to the properties' estimated market value. On July 1, 2009, the rental value totaled SEK 207.8 M and the contractual rental revenues totaled SEK 201.3 M on an annual basis. The revenue-related occupancy rate was 96.9 percent.
Property investments/acquisitions
Investments in current properties amounted to SEK 32 M. This amount pertains primarily to the renovation, rebuilding and extension of buildings.
Sale of properties
During the period Catena has sold parts of land at the property in Lilleström, Norway. The realized change in value was 3.2 M.
Lease-duration structure as of July 1, 2009
| Contracted rental | |||||
|---|---|---|---|---|---|
| revenue | |||||
| Expiry, | No. of | Leased floor | SEKm Proportion, | ||
| year | agreements | space, sq.m | % | ||
| 2009 | 10 | 5,487 | 5.5 | 2.7 | |
| 2010 | 7 | 4,918 | 4.9 | 2.4 | |
| 2011 | 6 | 5,767 | 4.0 | 2.0 | |
| 2012 | 10 | 6,002 | 5.1 | 2.5 | |
| 2013 | 4 | 9,795 | 6.7 | 3.3 | |
| 2014 | 6 | 34,198 | 27.8 | 13.8 | |
| 2015 | 3 | 14,027 | 14.2 | 7.1 | |
| 2016 | 3 | 3,830 | 4.2 | 2.1 | |
| 2017 | 3 | 15,181 | 9.0 | 4.5 | |
| 2018 | 1 | 3,688 | 6.4 | 3.2 | |
| 2019 | 2 | 22,034 | 18.6 | 9.2 | |
| 2020 | 2 | 19,951 | 26.3 | 13.1 | |
| 2021 | 2 | 45,797 | 33.8 | 16.8 | |
| 2022 | 3 | 27,010 | 23.7 | 11.8 | |
| 2023 | 1 | 7,627 | 11.1 | 5.5 | |
| Total | 63 | 225,312 | 201.3 | 100.0 |
Average lease-duration is 8.8 years
In the tables Contracted rental revenues and the Maturity structure, leases, signed leases, which have not yet entered into effect, are included.
Book value (totaled SEK 2,420 M) by region as of June 30, 2009
Rental value (totaled SEK 207.8 M) by region as of July 1, 2009
Maturity structure, leases, as of July 1, 2009 (SEK M)1)
Maturity structure excluding deviation possibilities in general agreements with Bilia.
1) The framework agreement covers seven properties, which combined comprise 13,8% of the total rental value at July 1, 2009. This agreement gives Bilia the possibility of vacating spaces corresponding to a maximum of two thirds of the aggregate base rent payable as of December 31, 2011 and all spaces covered by the framework agreement as of December 31, 2014. The framework agreement thereby expires. Under the framework agreement, the tenant is not entitled to leave spaces at times other than those stated above.
FINANCING
Shareholders' equity
Shareholders' equity at June 30, 2009 totaled SEK 797 M (966) and equity/assets ratio was 32.7 percent (37.5). Over the long term, the equity/assets ratio should remain in the range of 25 – 35 percent.
Liquidity
Cash and cash equivalents and short-term investments as of June 30, 2009 totaled SEK 2 M (10). In addition to cash and cash equivalents, the Group has SEK 71 (66) in unutilized overdraft facilities of a total of SEK 75 M (75).
Interest-bearing liabilities
As of June 30, 2009 Catena had long-term loan agreements amounting to SEK 1,363 M, In addition to these credit agreements, Catena also has an overdraft facility of SEK 75 M (75).
As of June 30, 2009, interest-bearing liabilities totaled SEK 1,367 M (1,260), of which overdraft facility of SEK 4 M (9) had been utilized. The average outstanding fixed credit period was 1.8 (2.9) years on June 30, 2009.
The average fixed-interest period at June 30, 2009 was 1.0 years (1.5). The average rate of interest was 2.80 percent (4.77). Referring only to the Swedish part of the interest costs, they amounted to 2.42 percent.
This fixed-interest period was achieved by using swap agreements in SEK and NOK to extend outstanding loans with short fixed-interest periods.
A change in the average rate of interest of ±1 percent impacts on Catena's interest expenses ± SEK 8.7 M.
Interest-bearing liabilities are distributed as per the following: 77.7 percent loans in SEK, 16.3 percent loans in NOK and 6.0 percent loans in DKK.
Provisions
Provisions of SEK 212 M (267) consist of provisions for deferred tax of SEK 198 M (256).
ORGANIZATION
Legal structure
Catena AB, corporate registration number 556294-1715, is the Parent Company of the Catena Group. The Norwegian and Danish properties are wholly owned by the Norwegian and Danish companies. The Swedish properties, except one, are owned by 13 wholly owned Swedish subsidiaries.
Personnel
Of the 12 (14) employees, 3 (3) are women.
Senior management and the finance function are located in Göteborg and consist of a total of seven employees. In addition, there are administrative personnel in Göteborg, Stockholm, Malmö. In Oslo the property management has been transferred to an external property management company as per April 2009.
| Term stucture of interest rates at June 30, 2009 | Loan-maturity structure at June 30, 2009 | |||||
|---|---|---|---|---|---|---|
| Loan amount | Av. interest rate | Share | Credit agreements | Utilized | ||
| Maturity, year | SEK M | % | % | SEK M | SEK M | Share |
| Floating | 865.0 | 1.79 | 63.6 | ----- | ----- | |
| 2009 | 0.0 | 0.00 | 0.0 | 60.00 | 60.00 | 4.4% |
| 2010 | 130.0 | 4.01 | 9.5 | 329.80 | 329.80 | 24.2% |
| 2011 | 130.0 | 4.16 | 9.5 | 618.40 | 618.40 | 45.4% |
| 2012 | 130.0 | 4.25 | 9.5 | 355.00 | 355.00 | 26.0% |
| 2014 | 108.2 | 6.03 | 7.9 | ----- | ----- | |
| Summa | 1,363.2 | 2.80 | 100.0 | 1,363.2 | 1,363.2 | 100.0% |
CATENA SHARE
The Catena share is listed on the Nasdaq OMX Stockholm – Nordic List Small Cap.
The last price paid on June 30, 2009 was SEK 80.50 per share, corresponding to a market capitalization of about SEK 931 M.
As of June 30, 2009, the number of shares in Catena was 11,564,500 distributed among 17,689 owners.
| Shareholders on June 30, 2009 | Number of shares |
Voting rights (%) |
|---|---|---|
| Endicott Sweden AB (CLS Holding plc) | 3,361,000 | 29.1 |
| Erik Selin gruppen | 2,476,688 | 21.4 |
| Catella fonder | 1,705,966 | 14.8 |
| Länsförsäkringar fonder | 512,602 | 4.4 |
| Skandia Liv | 289,400 | 2.5 |
| Swedbank Robur fonder | 163,634 | 1.4 |
| CBNY-DFA-INT SML CAP V | 109,825 | 0.9 |
| Mellon US Tax Exempt Account | 75,250 | 0.7 |
| Odin Eiendom | 60,400 | 0.5 |
| CBNY-DFA-CNTL SML CO S | 56,762 | 0.5 |
| Total, 10 largest shareholders | 8,811,527 | 76.2 |
| Other shareholders | 2,752,973 | 23.8 |
| Total | 11,564,500 | 100.0 |
CALENDAR
| Interim Report, January–September | October 28, 2009 |
|---|---|
| Year-end report 2009 | February 2010 |
This interim report has not been reviewed by the company's auditors.
The Board of Directors and the President certify that the six-month interim report provides a fair overview of the operations, position and result of the parent company and the group, and describes the significant risks and uncertainty factors facing the company and the companies belonging to the group.
Göteborg, August 19, 2009
Catena AB (publ)
Henry Klotz Peter Hallgren
Christer Sandberg Lennart Schönning Erik Selin Board member Board member Board member
Svante Wadman Board member
8.15 a.m.
Chairman of the Board Board Member and President
This information is such that Catena AB (publ) must release it publicly in accordance with the Swedish Securities and Clearing Operations Act and/or the Financial Instruments Trading Act. The information was released to the public on August 19, 2009 at
ACCOUNTING PRINCIPLES Catena applies the IFRS standards as adopted by
the EU and the interpretations of them (IFRIC). This interim report was prepared in accordance with IAS 34 and the Swedish Annual Accounts Act and for the Parent Company in accordance with the Swedish Annual Accounts Act.
New accounting principles 2009
Revised IAS 1 Presentation of financial statements is applied from January 1, 2009. Among other effects, the change results in revenues and expenses that were previously recognized directly in shareholders' equity are now reported in a separate statement directly after the income statement. Values for the preceding year are adjusted. Another change is that new terminology for the financial reports may be used. However, this is not obligatory. Catena has decided to retain the old terminology.
Other accounting principles and computation methods comply with those applied in the most recent annual report.
Consolidated income statement
| Result | Result | Result | Result | Result | |
|---|---|---|---|---|---|
| 2009 | 2008 | 2009 | 2008 | 2008 | |
| SEK M | Apr.-Jun. | Apr.-Jun. | Jan.-Jun. | Jan.-Jun. | Jan.-Dec. |
| Rental revenue | 50.2 | 47.0 | 99.8 | 93.1 | 189.3 |
| Operating expense | -1.1 | -0.6 | -1.7 | -1.2 | -2.3 |
| Repair and maintenance expenses | -1.9 | -2.2 | -4.0 | -4.2 | -8.9 |
| Property tax | -1.9 | -1.7 | -3.8 | -3.5 | -7.3 |
| Ground rent | -0.6 | -0.6 | -1.2 | -1.1 | -2.2 |
| Property administration | -1.2 | -1.3 | -2.7 | -2.6 | -5.3 |
| Net operating income | 43.5 | 40.6 | 86.4 | 80.5 | 163.3 |
| Other operating income | 0.7 | 1.8 | 1.0 | 3.2 | 4.9 |
| Other operating expenses | -0.6 | -2.1 | -0.9 | -3.2 | -6.0 |
| Central administration | -4.6 | -4.9 | -9.0 | -9.2 | -17.6 |
| Operating profit | 39.0 | 35.4 | 77.5 | 71.3 | 144.6 |
| Net financial items | -10.3 | -13.3 | -23.6 | -28.3 | -55.4 |
| Income from property management | 28.7 | 22.1 | 53.9 | 43.0 | 89.2 |
| Changes in value | |||||
| Properties, realized | 0.6 | 4.3 | 3.2 | 4.3 | 4.3 |
| Properties, unrealized | -13.3 | -32.5 | -1.9 | -27.1 | -260.2 |
| Financial derivatives, unrealized | 3.9 | 14.9 | -5.4 | 9.4 | -33.5 |
| Profit before tax | 19.9 | 8.8 | 49.8 | 29.6 | -200.2 |
| Current tax | -0.3 | -4.9 | -0.4 | -7.8 | -1.3 |
| Deferred taxes | -5.8 | 3.4 | -11.4 | -1.0 | 69.6 |
| Profit for the period after taxes | 13.8 | 7.3 | 38.0 | 20.8 | -131.9 |
| Earnings per share | 1.19 | 0.63 | 3.29 | 1.80 | -11.41 |
| Number of shares at end of period, thousands | 11,565 | 11,565 | 11,565 | 11,565 | 11,565 |
| Average number of shares, thousands | 11,565 | 11,565 | 11,565 | 11,565 | 11,565 |
1) The company has no warrants or convertibles outstanding.
Consolidated statement of comprehensive income
| Result | Result | Result | Result | Result | |
|---|---|---|---|---|---|
| 2009 | 2008 | 2009 | 2008 | 2008 | |
| SEK M | Apr.-Jun. | Apr.-Jun. | Jan.-Jun. | Jan.-Jun. | Jan.-Dec. |
| Profit for the period after taxes | 13.8 | 7.3 | 38 | 20.8 | -131.9 |
| Other comprehensive income for the period | |||||
| Change in revaluation reserve | 3.6 | -3.7 | -5.5 | 1.5 | -4.5 |
| Foreign currency translation adjustment | -6.5 | 3.8 | 19.0 | -1.1 | -2.5 |
| Total other comprehensive income for the period | -2.9 | 0.1 | 13.5 | 0.4 | -7.0 |
| Total comprehensive income for the period | 10.9 | 7.4 | 51.5 | 21.2 | -138.9 |
Consolidated balance statement
| Result | Result | Result | |
|---|---|---|---|
| SEK M | Jun. 30, 2009 | Jun. 30, 2008 | Dec. 31, 2008 |
| Assets | |||
| Properties | 2,420 | 2,520 | 2,354 |
| Other tangible fixed assets | 2 | 3 | 3 |
| Financial fixed assets | - | 23 | - |
| Current assets | 15 | 22 | 17 |
| Cash and cash equivalents | 2 | 10 | 45 |
| Total assets | 2,439 | 2,578 | 2,419 |
| Equity and liabilities | |||
| Equity | 797 | 966 | 806 |
| Provisions | 212 | 267 | 195 |
| Long-term interest-bearing liabilities | 1,358 | 1,251 | 1,341 |
| Current interest-bearing liabilities | 9 | 9 | 13 |
| Noninterest-bearing liabilities | 63 | 85 | 64 |
| Total equity and liabilities | 2,439 | 2,578 | 2,419 |
Changes in consolidated equity
| Result | Result | Result | |
|---|---|---|---|
| 2009 | 2008 | 2008 | |
| SEK M | Jan.-Jun. | Jan.-Jun. | Jan.-Dec. |
| Opening shareholders' equity | 806 | 1,006 | 1,006 |
| Dividend | -61 | -61 | -61 |
| Total comprehensive income for the period | 52 | 21 | -139 |
| Closing shareholders' equity | 797 | 966 | 806 |
| Result | Result | Result | |
|---|---|---|---|
| 2009 | 2008 | 2008 | |
| SEK M | Jan.-Jun. | Jan.-Jun. | Jan.-Dec. |
| Management result | 54 | 43 | 89 |
| Adjustments for non-cash items | 1 | 2 | 4 |
| Tax paid | - | -8 | -1 |
| Change in working capital | -7 | 28 | -2 |
| Cash-flow from operating activities | 48 | 65 | 90 |
| Change in tangible fixed assets | -29 | -66 | -149 |
| Cash-flow from investing activities | -29 | -66 | -149 |
| Paid dividend | -61 | -61 | -61 |
| Change in interest-bearing liabilities | -4 | 37 | 130 |
| Cash-flow from financing activities | -65 | -24 | 69 |
| Cash-flow for the period | -46 | -25 | 10 |
| Cash and cash equivalents at the beginning of the period | 45 | 35 | 35 |
| Exchange difference in cash | 3 | - | - |
| Cash and cash equivalents at the end of the period | 2 | 10 | 45 |
Consolidated cash-flow statement
Key ratios, Group
| Result | Result | Result | |
|---|---|---|---|
| 2009 | 2008 | 2008 | |
| Financial | Jan.-Jun. | Jan.-Jun. | Jan.-Dec. |
| Return on shareholders' equity, % | 9.5 | 4.2 | -14.6 |
| Return on total capital, % | 6.1 | 4.5 | -5.6 |
| Equity/assets ratio, % | 32.7 | 37.5 | 33.3 |
| Interest coverage ratio, management result, mutiple | 3.2 | 2.5 | 2.5 |
| Loan-to-value ratio, properties, % | 56.5 | 50.0 | 57.5 |
| Debt/equity ratio, multiple | 1.7 | 1.3 | 1.7 |
| Share-related (pertains to number of shares at the end of period) | |||
| Net profit for the period per share, SEK | 3.29 | 1.80 | -11.41 |
| Pre-tax profit for the period per share, SEK | 4.31 | 2.56 | -17.31 |
| Management result for the period after standard tax per share, SEK | 3.44 | 2.68 | 5.55 |
| Management result for the period per share, SEK | 4.66 | 3.72 | 7.71 |
| Shareholders' equity per share, SEK | 68.92 | 83.53 | 69.70 |
| Dividend per share, SEK | 5.25 | 5.25 | 5.25 |
| Number of shares at the end of the period, thousands | 11,565 | 11,565 | 11,565 |
| Average number of shares at the end of the period, thousands | 11,565 | 11,565 | 11,565 |
| Property-related | |||
| Book value of properties, SEK M | 2,420 | 2,520 | 2,354 |
| Direct yield, % | 7.3 | 6.4 | 7.3 |
| Rentable area, sq.m. | 233,930 | 227,500 | 230,529 |
| Rental revenue per sq.m., SEK | 867 | 818 | 846 |
| Operating surplus, per sq.m., SEK | 752 | 708 | 734 |
| Revenue-based occupancy rate, % | 96.9 | 98.6 | 96.3 |
| Surplus ratio, % | 86.6 | 86.5 | 86.3 |
| Employees | |||
| Number of employees at the end of the period | 12 | 14 | 14 |
Information per segment/region
| Rental revenue | Net operating income Book value |
Investments | Rentable area sq. m. | |||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2009 | 2008 | 2009 | 2008 | 2009 | 2008 | 2009 | 2008 | 2009 | 2008 | |
| SEK M | Jan.-Jun. | Jan.-Jun. | Jan.-Jun. | Jan.-Jun. | 30/Jun | 30/Jun | Jan.-Jun. | Jan.-Jun. | 30/Jun | 30/Jun |
| Stockholm | 32.3 | 32.7 | 26.6 | 26.9 | 807 | 888 | 4.4 | 2.8 | 88,877 | 88,755 |
| Göteborg | 23.4 | 23.3 | 21.0 | 20.7 | 553 | 604 | 0.3 | 13.7 | 58,875 | 59,139 |
| Öresund | 22.1 | 20.1 | 18.2 | 16.9 | 550 | 524 | 23.7 | 11.8 | 53,957 | 50,211 |
| Oslo | 22.0 | 17.0 | 20.6 | 16.0 | 510 | 504 | 3.5 | 34.7 | 32,221 | 29,395 |
| Total | 99.8 | 93.1 | 86.4 | 80.5 | 2,420 | 2,520 | 31.9 | 63.0 | 233,930 | 227,500 |
| Parent Company income statement |
|---|
| --------------------------------- |
| Result | Result | |
|---|---|---|
| 2009 | 2008 | |
| SEK M | Jan.-Jun. | Jan.-Jun. |
| Rental revenue | 1.9 | 2.3 |
| Operating expense | -1.8 | -2.6 |
| Net operating income | 0.1 | -0.3 |
| Other operating income | 9.1 | 11.3 |
| Other operating expenses | - | -0.5 |
| Central administration | -10.1 | -11.5 |
| Operating profit | -0.9 | -1.0 |
| Net financial items | -12.7 | -1.4 |
| Profit/loss after financial items | -13.6 | -2.4 |
| Financial derivatives, unrealized | -4.5 | 5.8 |
| Pre-tax profit | -18.1 | 3.4 |
| Taxes | 7.8 | -0.2 |
| Net profit for the period | -10.3 | 3.2 |
Parent Company balance statement
| Result | Result | |
|---|---|---|
| SEK M | Jun. 30, 2009 | Jun. 30, 2008 |
| Assets | ||
| Investment properties | 2 | 2 |
| Other tangible fixed assets | 1 | 1 |
| Financial fixed assets | 2,069 | 2,081 |
| Other current assets | 8 | 9 |
| Cash and cash equivalents | - | 1 |
| Total assets | 2,080 | 2,094 |
| Equity and liabilities | ||
| Equity | 480 | 557 |
| Provisions | 13 | 11 |
| Long term debt | 995 | 1,000 |
| Short term debt | 592 | 526 |
| Total equity and liabilities | 2,080 | 2,094 |
Definitions
Average number of shares
Weighted average of number of shares at the beginning and end of the period.
Book value of properties Book value of properties, land, construction in progress and building fixtures and fittings.
Cash flow for the period from operating activities per share
Property management income for the period divided by the number of shares outstanding at yearend.
Debt/equity ratio
Interest-bearing liabilities divided by equity.
Economic occupancy rate Rental revenue as a percentage of rental value.
Equity per share
Equity at the end of the period in relation to the number of shares at the end of the period.
Equity/assets ratio
Equity as a percentage of total assets.
Interest coverage ratio, current management
Income from property management after reversing interest expense, divided by interest expense.
Lettable area
Total area available for letting.
Loan-to-value ratio, properties
Interest-bearing liabilities as a percentage of the book value of properties.
Management income for the period after standard tax per share
Management income for the period less 28 per cents tax, divided by the average number of shares.
Net operating income per sq.m. Net operating income on an annual basis divided by lettable area.
Net profit for the period per share
Net profit for the period divided by the number of shares outstanding at year-end.
Number of properties
Total number of properties owned by the Catena Group.
Number of shares Registered number of shares on a particular date.
Pre-tax profit for the period per share Profit before tax divided by the number of shares outstanding at year-end.
Property expenses
Operating expense, repair and maintenance costs, site leasehold charges/ground rents, property tax and property administration.
Real estate property
One or more registered properties that comprise a management unit.
Rental revenue
Rents charged including supplements such as payment for property tax, etc.
Rental revenue per sq.m.
Rental revenue on an annual basis divided by lettable area.
Rental value Contracted rental revenue and potential rental revenue for vacant premises assessed by Catena.
Return on equity
Net profit for the period as a percentage of average equity.
Return on total capital
Profit before tax for the period plus interest expense as a percentage of average total assets.
Surplus ratio
Net operating income as a percentage of rental revenue.
Yield
Net operating income on an annual basis as a percentage of the properties' book value at the end of the period.
CATENA AB (publ)
Corp. Re. no:556294-1715 Box 262 SE-401 24 Göteborg Visitors: Lilla Bommen 6 Telephone:+46-(0) 31 760 09 30 Fax: +46 (0)31 700 89 88 www.catenafastigheter.se
Göteborg region
Box 262 SE-401 24 Göteborg Visitors: Lilla Bommen 6 Tel:+46- 31 760 09 30 Fax: +46 31 700 89 88
Stockholm region
Frösundaleden 4 SE-169 70 Solna Telephone: +46 (0)31 760 09 30 Fax: +46 (0)8 734 90 09
Öresund region
Box 21007 SE-200 21 Malmö Visitors: Agnesfridsvägen 121 Telephone: +46 (0)31 760 09 30 Fax: +46 (0)40 671 03 30
Oslo region
c/o Malling Forvaltning as Postboks 1883 Vika NO-0124 Oslo Telephone: +47 24 02 80 00 Fax +47 24 02 80 01
N.B. This is a translation from Swedish. The Swedish version shall always take precedence.
Figures in this year end report have been rounded off, while calculations were carried out without rounding off. Consequently, some tables do not appear to total correctly.