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Catena — Interim / Quarterly Report 2010
Aug 18, 2010
2901_ir_2010-08-18_5156f2db-a02d-40fc-a268-c3fd7b4b92ed.pdf
Interim / Quarterly Report
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INTERIM REPORT JANUARY – JUNE, 2010
HTH-kök – new tenant in Svågertorp, Malmö
.
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, 2010
- Rental revenue during the period totaled SEK 90.7m (99.8).
- Income from property management amounted to SEK 57.5m (53.9), or SEK 4.97 per share (4.66).
- Profit before tax for the period was SEK 186.2m (49.8).
- Profit after tax for the period amounted to SEK 195.1m (38.0), or SEK 16.87 per share (3.29).
- Realized change in value included in profit before tax amounted to SEK 57.2m (3.2)
- Unrealized change in value amounted to a profit of SEK 71.5m (loss: 7.3), for which property accounts for a profit of SEK 68.0m (loss: 1.9) and derivatives for a profit of SEK 3.5m (loss: 5.4).
- Investments in existing portfolio amounted to SEK 9m (32) during the period.
Peter Hallgren, President and CEO:
- Catena reports its best income from property management and after-tax profit since the company's listing in 2006.
- On final settlement, the sale of the Norwegian properties and one property in Denmark generated a capital gain of SEK 57.2m. At the same time, the sales resulted in a reduction of approximately SEK 11m in rental revenue during the first six months of the year. For remaining properties, rental revenue increased by about SEK 2m.
- The unrealized change in value of SEK 68m was largely attributable to the property in Haga Norra, Solna, where Catena and the City of Solna are jointly implementing a new detailed development plan. Approval of the new detailed development plan is expected to occur during 2011.
- Catena's future focus, following the divestments in Denmark and Norway, will be on metropolitan regions in the Swedish market and on continuing to add value to the existing portfolio.
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 three growth regions: Stockholm, Göteborg and Öresund.
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 90.7m (99.8). The decrease from the preceding year is due to the sale of the Norwegian properties. Some 83.6 percent (87.2) of rental revenue derives from the Bilia Group.
The revenue-based occupancy rate totaled 96.3 percent (96.9) on July 1, 2010. The total rental value of vacant premises was estimated to amount to an annual SEK 5.9m (6.5). The average lease term was 8.1 years (8.8).
Property expenses
Property expenses totaled SEK 13.4m (13.4). Of total property expenses, operating expenses increased by SEK 0.9m compared to year 2009, mainly due to increased expenses for snow clearing. Repair and maintenance expenses decreased by SEK 0.4m compared with the preceding year. Property tax and leasehold fees remained unchanged. Property administration decreased SEK 0.5m compared to year 2009.
Operating surplus
The operating surplus for the year was SEK 77.3m (86.4).
Other operating revenues
Other operating revenues of SEK 0.3m (0.8) consist of consulting fees of SEK 0.0m (0.1), and invoicing forwarded to tenants in respect of work completed, in the amount of SEK 0.3m (0.4). Preceding year also included sales of company cars SEK 0.3m .
Other operating expenses
Other operating expenses comprise SEK 0.3m (0.4) for work-related costs that were passed on to tenants and SEK 1.0m (0.0) in compensation paid for interruptions experienced by tenants. Preceding year also included consulting fees of SEK 0.3m .
Central administration
Expenses relating to central administration totaled SEK 6.8m (9.0). This item includes costs for Group Management and other central functions. The change is primarily due to the sale of
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.
the Norwegian subsidiary and to the effects of a saving program.
Net financial items
Net financial items amounted to an expense of SEK 12.0m (23.6). The annual average interest rate, including derivative instruments, was 2.15 percent (2.80) on the closing date. Financial instruments limit the impact of interest-rate movements on the Group's borrowing costs. During the period, interest paid was capitalized in the amount of SEK 0.0m (0.4) for current construction projects. During the second quarter all loans regarding the Danish properties have been solved.
Financial items
| Net financial items | -6,0 | -10,3 | -12,0 | -23,6 |
|---|---|---|---|---|
| Net exchange rate fluctuations | -1,4 | 0,0 | 1,1 | 0,0 |
| Interest expenses | -6,4 | -10,4 | -15,0 | -24,5 |
| Interest income | 1,8 | 0,1 | 1,9 | 0,9 |
| SEK m | April-June April-June | Jan-June | Jan-June | |
| 2010 | 2009 | 2010 | 2009 |
Income from property management
Income from property management totaled SEK 57.5m (53.9).
Changes in value
Properties
The Group's Swedish and Danish properties were internally valued at closing date using externally obtained information on the Swedish and Danish 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 mostly unchanged in Sweden and Denmark. The internal rate of return on net operating income varies from 6.6 to 10.2 percent and for the residual value yield from 6.50 to 8.60 percent. Refer to Catena's Annual Report for 2009 for more detailed information on the valuation methods.
Change in book value of the properties
| Book value at the end of period | 1 939 | 2 420 |
|---|---|---|
| Currency effect | -6 | 36 |
| Divestments | -604 | - |
| Investments in existing portfolio | 9 | 32 |
| Value changes | 68 | -2 |
| Book value at the beginning of period | 2 472 | 2 354 |
| SEK m | Jan.-Jun. | Jan.-Jun. |
| 2010 | 2009 |
Divested properties
During the period, Catena divested all of its properties in Norway. The properties were transferred to the buyer on March 31, 2010. Final settlement was received on July 12 and is included in profit as of June 30. On June 1, a property at Jagtvej in Copenhagen was divested.
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 8.5m (loss: 24.5) on the closing date, of which, the change in value for the period resulted in an increase of SEK 3.5m (increase: 0.8). The unrealized changes of value have no impact on the cash flow statement.
Value change
As a result of its property holdings in Denmark, the Group is exposed to the currency of this country.
Taxes
Current tax paid for the period amounted to SEK -29.4m (-9.8) and deferred tax to a profit of SEK 38.3m (loss: 11.4). The positive change in deferred tax is largely attributable to the sale of properties in Norway and Denmark.
Profit after tax for the period
The profit after tax for the period totaled SEK 195.1m (38.0).
Other comprehensive income for the period
Other comprehensive loss for the period amounted to a loss of SEK 10.3m (income: 13.5) and comprised of revaluations of internal balances of SEK 9.9m (loss: 5.5), of the translation reserve in a negative amount of SEK 15.3m (pos: 19.0) and of the translation reserve transferred to net profit in a negative amount of SEK 4.9m (0.0).
Total comprehensive income for the period
The comprehensive income of the period amounted to SEK 184.8m (51.5).
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 holding of properties in Denmark, the income statement and balance sheet can also be affected by fluctuations in the currency of this country against the Swedish krona. Included among other risks are risks in leases, changes in operation and maintenance expenses and interest and financing risks, valuation of properties and taxes. Investment properties are reported on the balance sheet at fair value and changes in value of these properties are reported in the income statement. This means that the effects of Catena's income- and balance statements become more volatile, affecting in particular the Group's earnings, equity/assets ratio and loan-to-value ratio.
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 quarterly report as for year-end 2009. 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.
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 2009 Annual Report, pages 18-19 and page 54.
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, 2010 has been determined in accordance with the following:
- Rental revenue is contractual rental revenue as of July 1, 2010 on an annual basis with the addition for estimated market rent for vacant premises. Given rent reduction have not been divided into periods.
- 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, 2010.
- Other operating revenues/expenses have not been taken into account.
| Current earnings capacity | |
|---|---|
| 2010 | |
| SEK m | June 30 |
| Rental value | 158 |
| Vacancies | -6 |
| Rental income | 152 |
| Property costs | -24 |
| Net operation income | 128 |
| Central administration | -12 |
| Net financial items | -20 |
| Income from property management | 96 |
PROPERTIES
The Group's real estate portfolio consists of commercial premises located in the Stockholm, Gothenburg and Öresund regions.
On June 30, 2010, the real estate portfolio consisted of 26 properties, of which five are held on leasehold, with a rentable area of 192,995 square meters.
The properties are booked at a carrying amount of SEK 1 939m, which corresponds to the properties' estimated market value. On July 1, 2010, the rental value totaled SEK 158.2m. Contracted rental revenue on a yearly basis amounted to SEK 157.5m, of which SEK 5.2m pertained to rental agreements that have not yet come into effect. The revenue-related occupancy rate was 96.3 percent.
Property investments/acquisitions
Investments in current properties amounted to SEK 9m. This amount pertains primarily to construction and rebuilding.
Lease-duration structure as of July 1, 2010
| Contracted rental | |||||
|---|---|---|---|---|---|
| revenue | |||||
| Expiry, | No. of | Leased floor | SEKm Proportion, | ||
| year | agreements | space, sq.m | % | ||
| 2010 | 5 | 914 | 0.8 | 0.5 | |
| 2011 | 8 | 4,089 | 2.9 | 1.8 | |
| 2012 | 18 | 10,222 | 9.7 | 6.2 | |
| 2013 | 5 | 11,668 | 8.0 | 5.1 | |
| 2014 | 7 | 35,097 | 28.2 | 17.9 | |
| 2015 | 2 | 6,516 | 4.7 | 3.0 | |
| 2016 | 3 | 3,830 | 4.1 | 2.6 | |
| 2017 | 5 | 17,052 | 13.7 | 8.7 | |
| 2018 | 1 | 3,688 | 6.4 | 4.1 | |
| 2019 | 2 | 22,034 | 19.0 | 12.1 | |
| 2020 | 0 | 0 | 0.0 | 0.0 | |
| 2021 | 3 | 47,855 | 36.1 | 22.8 | |
| 2022 | 3 | 27,710 | 23.9 | 15.2 | |
| Total | 62 | 190,675 | 157.5 | 100.0 |
Average lease-duration is 8.1 years
In the tables, the items Contracted rental revenue and Maturity structure include granted rent discounts and signed leases, which have not yet entered into effect. However, the granted rent discounts have not been accrued over the lease term.
Book value (totaled SEK 1 939m) by region as of June 30, 2010
Rental value (totaled SEK 158.2m) by region as of July 1, 2010
Maturity structure, leases, as of July 1, 2010 (SEKm)1)
Maturity structure excluding deviation possibilities in general agreements with Bilia.
1) The framework agreement covers seven properties, which combined comprise 18.0% of the total rental value at July 1, 2010. 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, 2010 totaled SEK 1 001m (797) and equity/assets ratio was 43.5 percent (32.7). 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, 2010 totaled SEK 359m (2). In addition to cash and cash equivalents, the Group has SEK 75m (71) in unutilized overdraft facilities.
Interest-bearing liabilities
As of June 30, 2010 Catena had long-term loan agreements amounting to SEK 1,052m. In addition to these credit agreements, Catena also has an overdraft facility of SEK 75m (75).
As of June 30, 2010, interest-bearing liabilities totaled SEK 1,052m (1,367). The average outstanding fixed credit period was 1.6 (1.8) years on June 30, 2010.
The average fixed-interest period at June 30, 2010 was 0.4 years (1.0). The average rate of interest was 2.15 percent (2.80).
This fixed-interest period was achieved by using swap agreements to extend outstanding loans with short fixed-interest periods.
A change in market rate of interest of ±1 percent impacts on Catena's interest expenses ± SEK 8.0m.
Catena only has loans denominated in SEK.
Provisions
Provisions of SEK 152m (212) consist of provisions for deferred tax of SEK 139m (198).
CATENA SHARE
The Catena share is listed on the Nasdaq OMX Stockholm – Nordic List Small Cap.
The last price paid on June 30, 2010 was SEK 110.50 per share, corresponding to a market capitalization of about SEK 1,278m.
As of June 30, 2010, the number of shares in Catena was 11,564,500 distributed among 17,114 owners.
| Shareholders on Jun. 30, 2010 | Number of shares |
Voting rights (%) |
|---|---|---|
| Endicott Sweden AB (CLS Holding plc) | 3,361,000 | 29.1 |
| Erik Selin gruppen | 2,476,688 | 21.4 |
| PEAB AB | 2,240,900 | 19.4 |
| Skandia Liv | 289,400 | 2.5 |
| Banque Carnegie Luxembourg SA | 171,921 | 1.5 |
| CBNY-DFA-INT SML CAP V | 109,825 | 0.9 |
| Mellon US Tax Exempt Account | 75,250 | 0.7 |
| Swedbank Robur fonder | 60,208 | 0.5 |
| CBNY-DFA-CNTL SML CO S | 56,762 | 0.5 |
| Verdipapirfondet Odin Eiendom | 53,621 | 0.5 |
| Total, 10 largest shareholders | 8,895,575 | 76.9 |
| Other shareholders | 2,668,925 | 23.1 |
| Total | 11,564,500 | 100.0 |
ORGANIZATION
Legal structure
Catena AB, corporate registration number 556294-1715, is the Parent Company of the Catena Group. The Danish properties are wholly owned by the Danish company. The Swedish properties, except one, are owned by 13 wholly owned Swedish subsidiaries.
Personnel
Of the 10 (12) employees, 2 (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, and Malmö.
| Term stucture of interest rates at June 30, 2010 | Loan-maturity structure at June 30, 2010 | |||||
|---|---|---|---|---|---|---|
| Loan amount | Av. interest rate Share Credit agreements Utilized |
Share | ||||
| Maturity, year | SEK m | % | % | SEK m | SEK m | % |
| Floating | 791.7 | 1.63 | 75.2 | ----- | ----- | |
| 2010 | - | - | - | 60.0 | 60.0 | 5.7 |
| 2011 | 130.0 | 3.70 | 12.4 | 396.7 | 396.7 | 37.7 |
| 2012 | 130.0 | 3.79 | 12.4 | 350.0 | 350.0 | 33.3 |
| 2013 | - | - | - | 245.0 | 245.0 | 23.3 |
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.
The accounting principles and computation methods comply with those applied in the most recent annual report.
CALENDAR
| Interim report Jan-Sept. 2010 | October 27, 2010 |
|---|---|
| Year-end report | February, 2011 |
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 18, 2010
Catena AB (publ)
| Henry Klotz | Peter Hallgren | Christer Sandberg |
|---|---|---|
| Chairman of the Board | Board Member and President | Board Member |
Lennart Schönning Erik Selin Svante Wadman Board member Board member Board member
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 18, 2010 at 08.15 a.m.
EVENTS AFTER THE REPORT PERIOD
Following the close of the report period, an agreement was reached on the final purchase consideration with the buyers of Catena's Norwegian subsidiary. This final settlement is included in the recognized profit as per June 30, 2010.
Consolidated income statement
| Result | Result | Result | Result | Result | |
|---|---|---|---|---|---|
| 2010 | 2009 | 2010 | 2009 | 2009 | |
| SEK m | Apr.-Jun. | Apr.-Jun. | Jan.-Jun. | Jan.-Jun. | Jan.-Dec. |
| Rental revenue | 39.0 | 50.2 | 90.7 | 99.8 | 203.3 |
| Operating expense | -0.6 | -1.1 | -2.6 | -1.7 | -2.8 |
| Repair and maintenance expenses | -1.7 | -1.9 | -3.6 | -4.0 | -7.4 |
| Property tax | -2.0 | -1.9 | -3.9 | -3.8 | -7.6 |
| Ground rent | -0.5 | -0.6 | -1.1 | -1.2 | -2.3 |
| Property administration | -1.1 | -1.2 | -2.2 | -2.7 | -5.5 |
| Net operating income | 33.1 | 43.5 | 77.3 | 86.4 | 177.7 |
| Other operating income | 0.1 | 0.5 | 0.3 | 0.8 | 4.9 |
| Other operating expenses | -0.2 | -0.4 | -1.3 | -0.7 | -2.8 |
| Central administration | -3.4 | -4.6 | -6.8 | -9.0 | -14.1 |
| Operating profit | 29.6 | 39.0 | 69.5 | 77.5 | 165.7 |
| Net financial items | -6.0 | -10.3 | -12.0 | -23.6 | -41.2 |
| Income from property management | 23.6 | 28.7 | 57.5 | 53.9 | 124.5 |
| Changes in value | |||||
| Properties, realized | 17.6 | 0.6 | 57.2 | 3.2 | 3.2 |
| Properties, unrealized | 63.4 | -13.3 | 68.0 | -1.9 | 34.7 |
| Financial derivatives, unrealized | 2.7 | 3.9 | 3.5 | -5.4 | -0.7 |
| Profit before tax | 107.3 | 19.9 | 186.2 | 49.8 | 161.7 |
| Current tax | -19.6 | -0.3 | -29.4 | -0.4 | -2.1 |
| Deferred taxes | -17.4 | -5.8 | 38.3 | -11.4 | -39.2 |
| Profit for the period after taxes | 70.3 | 13.8 | 195.1 | 38.0 | 120.4 |
| Earnings per share | 6.08 | 1.19 | 16.87 | 3.29 | 10.41 |
| 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 | |
|---|---|---|---|---|---|
| 2010 | 2009 | 2010 | 2009 | 2009 | |
| SEK m | Apr.-Jun. | Apr.-Jun. | Jan.-Jun. | Jan.-Jun. | Jan.-Dec. |
| Profit for the period after taxes | 70.3 | 13.8 | 195.1 | 38.0 | 120.4 |
| Other comprehensive income for the period | |||||
| Change in revaluation reserve | - | - | - | - | - |
| Foreign currency translation adjustment | -1.8 | -2.9 | -5.4 | 13.5 | 16.8 |
| Translation reserve transferred to net profit for the period | - | - | -4.9 | - | - |
| Total other comprehensive income for the period | -1.8 | -2.9 | -10.3 | 13.5 | 16.8 |
| Total comprehensive income for the period | 68.5 | 10.9 | 184.8 | 51.5 | 137.2 |
Consolidated balance statement
| Result | Result | Result | |
|---|---|---|---|
| SEK m | Jun. 30, 2010 | Jun. 30, 2009 | Dec. 31, 2009 |
| Assets | |||
| Properties | 1,939 | 2,420 | 2,472 |
| Other tangible fixed assets | 2 | 2 | 2 |
| Current assets | 3 | 15 | 7 |
| Cash and cash equivalents | 359 | 2 | 103 |
| Total assets | 2,303 | 2,439 | 2,584 |
| Equity and liabilities | |||
| Equity | 1,001 | 797 | 883 |
| Provisions | 152 | 212 | 241 |
| Long-term interest-bearing liabilities | 1,047 | 1,358 | 1,362 |
| Current interest-bearing liabilities | 5 | 9 | 5 |
| Noninterest-bearing liabilities | 98 | 63 | 93 |
| Total equity and liabilities | 2,303 | 2,439 | 2,584 |
Changes in consolidated equity
| Result | Result | Result | |
|---|---|---|---|
| 2010 | 2009 | 2009 | |
| SEK m | Jan.-Jun. | Jan.-Jun. | Jan.-Dec. |
| Opening shareholders' equity | 883 | 806 | 806 |
| Dividend | -66 | -61 | -61 |
| Total comprehensive income for the period | 184 | 52 | 138 |
| Closing shareholders' equity | 1,001 | 797 | 883 |
Consolidated cash-flow statement
| Result | Result | Result | |
|---|---|---|---|
| 2010 | 2009 | 2009 | |
| SEK m | Jan.-Jun. | Jan.-Jun. | Jan.-Dec. |
| Management result | 57 | 54 | 125 |
| Adjustments for non-cash items | 1 | 1 | -3 |
| Tax paid | -29 | - | -2 |
| Change in working capital | 21 | -7 | 39 |
| Cash-flow from operating activities | 50 | 48 | 159 |
| Change in tangible fixed assets | 576 | -29 | -36 |
| Cash-flow from investing activities | 576 | -29 | -36 |
| Paid dividend | -67 | -61 | -61 |
| Change in interest-bearing liabilities | -303 | -4 | -8 |
| Cash-flow from financing activities | -370 | -65 | -69 |
| Cash-flow for the period | 256 | -46 | 54 |
| Cash and cash equivalents at the beginning of the period | 103 | 45 | 45 |
| Exchange difference in cash | - | 3 | 4 |
| Cash and cash equivalents at the end of the period | 359 | 2 | 103 |
Key ratios, Group
| Result | Result | Result | |
|---|---|---|---|
| 2010 | 2009 | 2009 | |
| Financial | Jan.-Jun. | Jan.-Jun. | Jan.-Dec. |
| Return on shareholders' equity, % | 41.4 | 9.5 | 14.3 |
| Return on total capital, % | 16.4 | 6.1 | 8.2 |
| Equity/assets ratio, % | 43.5 | 32.7 | 34.2 |
| Interest coverage ratio, management result, mutiple | 4.9 | 3.2 | 4.0 |
| Loan-to-value ratio, properties, % | 54.3 | 56.5 | 55.3 |
| Debt/equity ratio, multiple | 1.1 | 1.7 | 1.5 |
| Share-related (pertains to number of shares at the end of period) | |||
| Net profit for the period per share, SEK | 16.87 | 3.29 | 10.41 |
| Pre-tax profit for the period per share, SEK | 16.10 | 4.31 | 13.98 |
| Management result for the period per share, SEK | 4.97 | 4.66 | 10.77 |
| Management result for the period after standard tax per share, SEK | 3.66 | 3.44 | 7.93 |
| Shareholders' equity per share, SEK | 86.56 | 68.92 | 76.35 |
| Dividend per share, SEK | 5.75 | 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 | 1,939 | 2,420 | 2,472 |
| Direct yield, % | 6.7 | 7.3 | 7.2 |
| Rentable area, sq.m. | 192,995 | 233,930 | 231,314 |
| Rental revenue per sq.m., SEK | 804 | 867 | 886 |
| Operating surplus, per sq.m., SEK | 673 | 752 | 775 |
| Revenue-based occupancy rate, % | 96.3 | 96.9 | 97.9 |
| Surplus ratio, % | 85.2 | 86.6 | 87.4 |
| Employees | |||
| Number of employees at the end of the period | 10 | 12 | 11 |
Information per segment/region
| Rental revenue | Net operating income | Book value | Investments | Rentable area sq. m. | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| 2010 | 2009 | 2010 | 2009 | 2010 | 2009 | 2010 | 2009 | 2010 | 2009 | ||
| SEK m | Jan.-Jun. | Jan.-Jun. | Jan.-Jun. | Jan.-Jun. | 30/Jun | 30/Jun | Jan.-Jun. | Jan.-Jun. | 30/Jun | 30/Jun | |
| Stockholm | 32.8 | 32.3 | 25.5 | 26.6 | 881 | 807 | 1.5 | 4.4 | 88,566 | 88,877 | |
| Göteborg | 22.6 | 23.4 | 20.1 | 21.0 | 562 | 553 | 2.1 | 0.3 | 55,864 | 58,875 | |
| Öresund | 23.9 | 22.1 | 20.9 | 18.2 | 496 | 550 | 4.9 | 23.7 | 48,565 | 53,957 | |
| Oslo | 11.4 | 22.0 | 10.8 | 20.6 | - | 510 | - | 3.5 | - | 32,221 | |
| Total | 90.7 | 99.8 | 77.3 | 86.4 | 1,939 | 2,420 | 8.5 | 31.9 | 192,995 | 233,930 |
Parent Company income statement
| Result | Result | Result | |
|---|---|---|---|
| 2010 | 2009 | 2009 | |
| SEK m | Jan.-June | Jan.-June | Jan.-Dec. |
| Rental revenue | 1.6 | 1.9 | 3.6 |
| Operating expense | -1.5 | -1.8 | -3.4 |
| Net operating income | 0.1 | 0.1 | 0.2 |
| Other operating income | 10.3 | 9.1 | 21.4 |
| Other operating expenses | -0.1 | - | -0.1 |
| Central administration | -9.6 | -10.1 | -18.7 |
| Operating profit | 0.7 | -0.9 | 2.8 |
| Net financial items | 10.7 | -12.7 | -27.5 |
| Profit/loss after financial items | 11.4 | -13.6 | -24.7 |
| Financial derivatives, unrealized | 4.9 | -4.5 | -1.7 |
| Income from sale of subsidiary | 238.3 | - | - |
| Pre-tax profit | 254.6 | -18.1 | -26.4 |
| Taxes | -1.5 | 7.8 | 10.4 |
| Net profit for the period | 253.1 | -10.3 | -16.0 |
Parent Company balance statement
| Result | Result | Result | |
|---|---|---|---|
| SEK m | June 30, 2010 | June 30, 2009 | Dec. 31, 2009 |
| Assets | |||
| Investment properties | 2 | 2 | 2 |
| Other tangible fixed assets | - | 1 | - |
| Financial fixed assets | 2,097 | 2,069 | 2,061 |
| Other current assets | 2 | 8 | 3 |
| Cash and cash equivalents | 357 | - | 97 |
| Total assets | 2,458 | 2,080 | 2,163 |
| Equity and liabilities | |||
| Equity | 753 | 480 | 512 |
| Provisions | 13 | 13 | 13 |
| Long term debt | 988 | 995 | 1,008 |
| Short term debt | 704 | 592 | 630 |
| Total equity and liabilities | 2,458 | 2,080 | 2,163 |
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 letting
New lease contracts during the period less leases with notice of vacation.
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 ex-
pense 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 (0)31 760 09 30 Fax: +46 (0)31 700 89 88
Stockholm region
Box 262 SE-401 24 Göteborg Visitors: Häradsvägen 255, Segeltorp Telephone: +46 (0)31 760 09 30 Fax +46 (0)31 700 89 88
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
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.