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Corem Property Group Audit Report / Information 2024
2903_10-k_2025-02-13_4c0b2ea3-c743-46b6-89b2-3c7afc099845.pdf
Audit Report / Information
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Year-end Report January–December 2024
Properties for the future
PROFIT FROM PROPERTY MANAGEMENT, SEKm
LOAN TO VALUE, %
NET ASSET VALUE (NAV) PER ORDINARY SHARE A/B, SEK Stockholm
Nyköping
Uppsala
Norrköping
Västerås
Örebro
Linköping
Kalmar
LETTABLE AREA BY TYPE, %
Office 51% Stock/Logistics 23% Retail 9% Other 17%
PROPERTY VALUE, SEKm
January–December 2024
- Income amounted to SEK 3,695 million (4,244)
- Operating surplus amounted to SEK 2,362 million (2,882)
- Net financial income amounted to SEK –1,288 million (–1,464)
- Profit from property management amounted to SEK 914 million (1,239)
- Changes in value of properties amounted to SEK –1,717 million (–8,476)
- Profit/loss for the period amounted to SEK –1,058 million (–7,999), corresponding to SEK –1.43 (–7.88) per ordinary share of class A and B
- Net letting amounted to SEK 61 million during the period (83)
- The value of the investment properties amounted to SEK 55,205 million (58,033)
- Net asset value (NAV) per ordinary share of class A and B amounted to SEK 15.97 (17.57)
- During the year, a total of 37 properties were transferred at an underlying property value of SEK 3.1 bn. The profit effect, including dissolved tax etc. amounted to SEK 177 million
EVENTS DURING THE FOURTH QUARTER
- During the quarter, 5 properties were transferred at an underlying property value of SEK 495 million
- An increase of SEK 425 million was made in bonds with maturity in May 2026
- Bonds with an outstanding amount of SEK 314 million, with maturity in February 2025, were redeemed
- New interest rate swaps of SEK 4.5 bn were signed
EVENTS AFTER THE END OF THE YEAR
- Senior unsecured green bonds of SEK 1,000 million were issued under a framework of SEK 2,000 million, with a term of 3.25 years, carrying a variable interest rate of 3-month Stibor plus 425 basis points and maturity on 28 April 2028
- Bonds, with maturity in February 2025, were redeemed at maturity. Outstanding amount was then SEK 1,403 million
- In February, an agreement was signed to divest a portfolio of eight properties in Halmstad at an underlying property value of SEK 520 million
| 2024 3 months Oct–Dec |
2023 3 months Oct–Dec |
2024 12 months Jan–Dec |
2023 12 months Jan–Dec |
|
|---|---|---|---|---|
| Income, SEKm | 915 | 1,016 | 3,695 | 4,244 |
| Net operating income, SEKm | 554 | 632 | 2,362 | 2,882 |
| Profit from property management, SEKm | 178 | 223 | 914 | 1,239 |
| Net profit/loss, SEKm | –790 | –3,065 | –1,058 | –7,999 |
| Earnings per ordinary share of Class A and B, SEK | –0.78 | –2.97 | –1.43 | –7.88 |
| Net asset value (NAV) per ordinary share of Class A and B, SEK | 15.97 | 17.57 | 15.97 | 17.57 |
| Economic occupancy rate, % | 86 | 87 | 86 | 87 |
| Operating margin, % | 61 | 62 | 64 | 68 |
| Adjusted equity ratio, % | 42 | 41 | 42 | 41 |
| Interest coverage ratio | 1.5 | 1.7 | 1.7 | 1.9 |
| Loan-to-value ratio, % | 54 | 55 | 54 | 55 |
See page 23 and corem.se for definitions of key figures
4,345 Rental value, SEKm
61 Net letting, SEKm
15.97 Net asset value per ordinary share of class A and B, SEK
914 Profit from property management, SEKm
Positive net letting and continued focus on financial stability
2024 was an eventful year for Corem. We signed a large number of new leases and although we are experiencing a slight decline in demand in the office segment, we delivered net letting for the full year of SEK 61 million. At the same time, we implemented key strategic measures to strengthen Corem's financial position using, for example, a new share issue and the amortisation of debt. The economy remains cautious, but the interest rate cuts made to date and and inflation that has stabilized at a lower level now have a gradual impact in the property sector.
Market situation and economy
The economy stagnated during the year and has not yet managed to rebound. However, inflation has decreased, as have interest rates, which have returned to 2022 levels. Accordingly, in time, there will be a decrease in the pressure on the property sector, which has been impacted for several years by higher financial expenses, combined with value decline. The improving situation provides favourable conditions for the industry going forward, but also to enable growth in the economy in general to regain momentum. My hope is that we will remember 2025 as the year in which the tenacious recession finally rebounds.
Stable end to the year
Net operating income for 2024 decreased as a natural consequence of divestments compared to the previous year. However, in a comparable portfolio, income increased by 3 per cent and net operating income by 1 per cent. Profit from property management amounted to SEK 914 million for full-year 2024.
The value changes amounted to SEK –1,244 million in the fourth quarter, which was primarily due to value adjustments related to transfers and increased yield requirements in the US due to high long-term rates of interest.
As a result of the year's interest rate reductions in conjunction with our implementation of a number of refinancing measures and interest hedges in the fourth quarter, we are now seeing how the effects of these are impacting our average rate of interest, which decreased from 5.0 per cent to 4.6 per cent during the quarter.
Positive net letting despite market challenges
In the logistics segment, there is continued healthy demand for well-located warehouse and logistics properties. However, we are seeing a somewhat more cautious office rental market, primarily in Stockholm, where the offering of vacant offices is growing and rent increases are slowing. Some companies are reviewing their premises requirements and in some cases, are also reducing their floorspace. However, the demand for attractive premises in the right locations remains strong and although we are seeing changes in the tenants' needs and priorities in some areas, we succeeded in achieving positive net letting of SEK +61 million for full-year 2024. This is a real show of strength in a somewhat challenging market and something we are very proud of. The fourth quarter was impacted by a termination of some of Ericsson's spaces in Kista, which resulted in negative net letting in the last quarter of SEK –38 million. This is a natural aspect of being a property owner; we often adapt premises to the tenants' changed requirements, but sometimes tenants choose to move out and we then work proactively in our management to find new tenants. Our primary focus is always to fill vacant space and to be able to offer flexible and sustainable solutions that meet the
market's changed requirements, which is made possible through active management and close dialogue with our tenants.
Through a number of excellent lettings in the US during the year, we substantially increased the occupancy rate in both of our project properties. During the year, 19 new leases were signed, of which seven for a total of 4, 700 square metres in the fourth quarter. This entails occupancy rates of 95 per cent and 77 per cent, respectively, in the 28&7 and 1245 Broadway projects. Since the end of the year, the final spaces in 28&7 have also been let, meaning that it is fully let, which is, of course, highly satisfying.
In total, Corem signed a full 699 new leases and 160 leases were renegotiated during 2024, an impressive number that evidences our skilled organisation's effort and commitment. Among the major lettings during the year were 3,500 square metres to the Swedish Coast Guard in Gothenburg, and three large lettings in Kista in Stockholm to OHB Sweden, Mycronic and Transcom, which amount to a combined total of nearly 12, 000 square metres.
Focus on financial stability and optimisation of the balance sheet
During 2024, we continued to prioritise financial stability and to optimise our balance sheet. A key part of this work was the directed issue of shares of Class B for slightly more than SEK 1 billion that was implemented during the summer. This strengthened our financial position and provided greater financial flexibility. We also continued to trim the balance sheet using selective divestments and amortisation of liabilities. As recently as yesterday, we communicated that we signed an agreement to divest a portfolio of eight properties in Halmstad for a total underlying property value of SEK 520 million. By divesting properties that are no longer compatible with our longterm strategy, we are able to free up capital and strengthen our financial flexibility. These measures are decisive in ensuring that we stand well equipped for the future and can continue to develop Corem in the best manner.
During 2024, three large bond maturities were managed totalling nearly SEK 5.5 billion that were redeemed in their entirety and, at the beginning of 2025, we also redeemed a bond with maturity in February of SEK 1.5 billion. In addition, to date we have repurchased a total of SEK 168 million in our hybrid bond, which thus has an outstanding volume of SEK 1,132 million.
As a result of increasing liquidity in the capital market, we also issued new green bonds in 2024 of a total of SEK 4 billion and, at the beginning of 2025, of a further SEK 1 billion.
Strategic priorities ahead
Corem is a smaller company now than it was a few years ago. We have divested significant parts of our property portfolio and will continue our efforts to create the best possible conditions for the
After the end of the year, Corem signed another lease in 28&7 in New York, whereupon the property is fully let.
business going forward. As always, the company's focus builds primarily on a persistent letting efforts, by which we offer new and existing tenants attractive premises solutions. We develop and improve our properties to ensure that we have satisfied customers and a modern and competitive portfolio that meets future needs. Part of that is also to continuously raise our property portfolio in terms of environmental performance, and that we as a business are sustainable. We have ambitious sustainability targets as they are important in ensuring our long-term competitiveness as well as in contributing to the necessary climate adaptations we as an industry need to make. Among the year's progress within Corem is a nice increase in both environmentally certified buildings and green properties, and a new, company-wide methodology for increased climate consideration in project development. In addition, we continue to optimise the balance sheet using selective sales, amortisation of liabilities and disciplines capital allocation, all to create such great values as possible for our shareholders.
The Board proposes that the Annual General Meeting resolve on an unchanged dividend for the financial year compared with the preceding year, entailing SEK 0.10 per ordinary share of Class A and B and SEK 20.00 per ordinary share of Class D and preference share.
Outlook
We enter 2025 with a strengthened financial position and a clear strategy to address the market's challenges and opportunities and to maximise value for our shareholders. I want to extend warm thanks to our employees, tenants and shareholders for your commitment and confidence during the year. Together, we will continue to develop Corem and create long-term value.
Rutger Arnhult CEO
Stockholm 13 February 2025
Income, expenses and profit
Income statement items are compared with the corresponding period last year. Balance sheet items refer to the position at the end of the period and are compared with the preceding year-end. The quarter refers to October-December and the year to January–December.
INCOME
Income amounted to SEK 915 million (1,016) during the fourth quarter and SEK 3,695 million (4,244) during the year. Income was positively affected by index adjustment and negatively by divestments . In a comparable portfolio, income increased by 3 per cent during the year.
EXPENSES
Property expenses amounted to SEK 361 million (384) during the quarter and SEK 1,333 million (1,362) during the year, as a smaller portfolio following divestments resulted in lower costs. Property costs in a comparable portfolio increased by 6 per cent. Central administration costs amounted to SEK 38 million (43) during the quarter and SEK 160 million (179) during the year.
NET FINANCIAL ITEMS
Net financial items amounted to SEK –338 million (–366) during the quarter and to SEK –1,288 million (–1,464) during the year. Financial income amounted to SEK 13 million (24) during the year and financial expenses to SEK 1,301 million (1,488). Reduced interest-bearing liabilities and a lower market interest rate contributed to an improved financial net for the year. At year-end, the group's average interest rate was 4.6 per cent (4.4). Financial expenses included site leasehold fees and land fees of SEK 77 million (78). For further information, refer to page 13.
EARNINGS
Operating surplus amounted to SEK 554 million (632) during the quarter and SEK 2,362 million (2,882) during the year. The operating margin was 61 per cent (62) during the quarter and 64 per cent (68) during the year. Net operating income and operating margin have decreased due to divestments compared to the previous year. In a comparable portfolio, operating surplus increased by 1 per cent during the year.
Profit from property management amounted to SEK 178 million (223) during the quarter and SEK 914 million (1,239) during the year.
CHANGES IN VALUE Properties
Changes in value of investment properties amounted to SEK –1,244 million (–2,653) during the quarter and SEK –1,717 million (–8,476) during the year. Unrealized changes in value amounted to SEK –1,712 million (–8,306) during the year and realized changes in value to SEK –5 million (–170). For further information, refer to page 7.
Financial assets
Value changes of financial assets valued at fair value amounted to SEK 125 million (87) during the year and are mainly attributed to the holding in the housing company Klövern. For further information, refer to page 14.
Derivatives
Changes in the value of derivatives amounted to SEK 293 million (–919) during the quarter and SEK –219 million (–1,000) during the year. The value of the derivatives is affected by changes in market interest rates.
GOODWILL
During the year, impairment of goodwill amounted to SEK –307 million (–589). Impairment refers to goodwill attributable to deferred tax where impairment occurs due to negative unrealized value changes and divestments of properties.
TAXES
During the quarter, current tax amounted to SEK 8 million (–3) and deferred tax amounted to SEK 124 million (490). During the year current tax amounted to and SEK –27 million (–49) and deferred tax to 174 million (1,865). Deferred tax is mainly attributable to dissolution of deferred tax in connection with divestment of properties and negative value changes in the property portfolio.
OTHER COMPREHENSIVE INCOME
Other comprehensive income during the year amounted to SEK 382 million (–328) and refers to currency conversion differences in foreign operations.
INCOME, SEKm
PROFIT FROM PROPERTY MANAGMENT, SEKm
The property portfolio
PROPERTY VALUES
On 31 December 2024, Corem's property portfolio comprised 289 (326) investment properties with a combined lettable area of 2,268 tsq.m. (2,428) and a market value of SEK 55,205 million (58,033).
CHANGES IN VALUE
Value changes in investment properties amounted during the year to SEK –1,717 million (–8,476), corresponding to 3 per cent. Unrealized value changes amounted to SEK –1,712 million and realized value changes to SEK –5 million.
The values of the majority of the investment properties were substantial unchanged during the quarter. Changes can essentially be deduced to slightly higher yield requirements in New York as well as a few layoffs there the Swedish portfolio.
Of the changes during the year, 85 per cent refers to properties in Sweden and 15 per cent to properties abroad. Denmark had a positive effect during the year, while the US accounted for a negative change in value if approximately SEK 400 million.
As at 31 December 2024, the property portfolio was valued using an average assessed dividend yield requirement of 6.0 per cent (5.8). Corem values all properties every quarter, of which 20 to 30 per cent are normally valued externally. As a rule, every property is valued by external valuers at least once annually, where exceptions may be made for individual properties. During the year, 99.6 percent of the properties were externally evaluated. During 2024, Bryggan, Cushman & Wakefield, Newmark, Newsec and Savills were used as valuation agencies. As support for the internal valuation, Corem obtains continuous market information from external valuation agencies. For a sensitivity analysis and a description of the valuation principles, see Corem's annual report.
PROPERTY TRANSACTIONS
During the year, 37 properties were divested at an underlying property value of SEK 3.1 billion. The profit effect, including dissolved tax and impairment of goodwill attributable to deferred tax amounted to SEK 177 million during the year. Reported realized change in value amounted to SEK –5 million and included transaction costs and such deferred tax deductions that were agreed in the transactions.
During the quarter, 5 divested properties were divested. See all divestments of the year on page 8.
After the end of the year, an agreement was signed to divest a
portfolio of eight properties in Halmstad at an underlying property value of SEK 520 million.
TENANTS AND THE LEASE PORTFOLIO
On 31 December 2024, Corem had approximately 3,100 tenants with approximately 5,600 lease contracts. The annual contract value amounted to SEK 3,717 million (3,740), the rental value amounted to SEK 4,345 million (4,322) and the economic occupancy rate to 86 per cent (87). The average remaining contract period was 3.3 years (3.4). 35 per cent of the contracted rent expires in 2028 or later. Of the annual contract value for offices, 18 per cent refers to rental income from public activities such as authorities, municipalities and regions.
Net letting
Net letting amounted to SEK –38 million (–7) during the quarter and SEK 61 million (83) during the year. Of these, SEK 92 million derives from new production projects and SEK –31 million from investment activities. In total, lettings and renegotiations amounted to SEK 565 million during the period, of which 66 per cent pertained to new customers and the remainder to existing customers.
Selected lettings
A number of new contracts were signed during the fourth quarter of the year.
In the 1245 Broadway development property in New York, among others, a three-year lease was signed with Symphony Communication Services for approximately 1,400 sq.m. with planned move-in scheduled during the second quarter of 2025, a five-year lease with The Fun Group for approximately 600 sq.m. with planned move-in in the fourth quarter of 2024 and a five-year lease with Aegis Venture Partners for approximately 500 sq.m. with planned move-in in the first quarter of 2025.
In the 28&7 development property in New York, a 15-year lease with was signed with Joe & the Juice for approximately 200 sq.m. with planned move-in in the fourth quarter of 2024.
In the Kranlinan 1 property in Västerås, a ten-year lease was signed with Interessanta Hus Sverige for approximately 2,600 sq.m. with planned move-in scheduled during the second quarter of 2025, and in the Idéläran 1 property in Linköping, a five-year lease was signed with Swisslog Technology for approximately 1,800 sq.m. with planned move-in during the second quarter of 2025.
NET LETTING, SEKm
CONTRACT STRUCTURE, SEKm
INVESTMENT PROPERTIES: NUMBER, LETTABLE AREA, FAIR VALUE
| 2024 | 2023 | |||
|---|---|---|---|---|
| No. | Sq.m. | SEKm | SEKm | |
| Total at the start of the year | 326 | 2,428,426 | 58,033 | 78,387 |
| Acquisitions | — | — | — | — |
| Investments in construction, extensions and refurbishment | — | 9,886 | 1,343 | 1,993 |
| Divestments | –37 | –169,955 | –3,011 | –14,010 |
| Changes in value, unrealised | — | — | –1,712 | –8,306 |
| Currency conversion | — | — | 552 | –31 |
| Total at the end of the period | 289 | 2,268,357 | 55,205 | 58,033 |
PROPERTY TRANSACTIONS, TRANSFER OF POSSESSION JAN–DEC 2024
| Lettable area, sq.m. | ||||||
|---|---|---|---|---|---|---|
| Quarter | Property | City | Municipality | Property category | Acquisition | Divestment |
| Q1 | Orgelpipan 4 | Stockholm | Stockholm | Office | — | 4,244 |
| Q1 | Pottegården 2 | Gothenburg | Mölndal | Warehouse/logistics | — | 1,800 |
| Q1 | Pottegården 4 | Gothenburg | Mölndal | Office | — | 4,930 |
| Q1 | Smörbollen 12 | Malmö | Malmö | Warehouse/logistics | — | 3,757 |
| Q1 | Backa 25:1 | Gothenburg | Gothenburg | Office | — | 4,042 |
| Q1 | Nackremmen 1 | Malmö | Malmö | Warehouse/logistics | — | 1,743 |
| Q1 | Nackremmen 2 | Malmö | Malmö | Warehouse/logistics | — | 2,413 |
| Q1 | Nosgrimman 1 | Malmö | Malmö | Warehouse/logistics | — | 1,828 |
| Q1 | 26er, 26fg, 26fi Frederiksberg | Copenhagen | Copenhagen | Education/health care/other | — | 19,300 |
| Q1 | Stensborg 2 | Västerås | Västerås | Office | — | 872 |
| Q1 | Bogserbåten 1 | Västerås | Västerås | Land | — | — |
| Q2 | Ellipsen 5 | Stockholm | Stockholm | Office | — | 2,820 |
| Q2 | Budkaveln 18 | Jönköping | Jönköping | Warehouse/logistics | — | 8,381 |
| Q2 | Öskaret 16 | Jönköping | Jönköping | Warehouse/logistics | — | 8,545 |
| Q2 | Flahult 21:36 | Jönköping | Jönköping | Warehouse/logistics | — | 12,878 |
| Q2 | Ädelmetallen 14 | Jönköping | Jönköping | Office | — | 2,558 |
| Q2 | Ädelmetallen 4 | Jönköping | Jönköping | Warehouse/logistics | — | 4,394 |
| Q2 | Ädelkorallen 1 | Jönköping | Jönköping | Warehouse/logistics | — | 1,350 |
| Q2 | Ädelkorallen 10 | Jönköping | Jönköping | Warehouse/logistics | — | 435 |
| Q2 | Ädelkorallen 17 | Jönköping | Jönköping | Office | — | 2,144 |
| Q2 | Ädelmetallen 12 | Jönköping | Jönköping | Warehouse/logistics | — | 2,004 |
| Q2 | Ädelmetallen 5 | Jönköping | Jönköping | Warehouse/logistics | — | 5,167 |
| Q2 | Äreporten 3 | Jönköping | Jönköping | Office | — | 1,302 |
| Q2 | Öronlappen 7 | Jönköping | Jönköping | Retail | — | 3,248 |
| Q2 | Öronlappen 8 | Jönköping | Jönköping | Education/health care/other | — | 2,234 |
| Q2 | Öronskyddet 9 | Jönköping | Jönköping | Warehouse/logistics | — | 1,683 |
| Q2 | Överlappen 15 | Jönköping | Jönköping | Warehouse/logistics | — | 1,954 |
| Q2 | Överlappen 8 | Jönköping | Jönköping | Warehouse/logistics | — | 1,726 |
| Q2 | Magneten 2 | Linköping | Linköping | Warehouse/logistics | — | 2,857 |
| Q2 | Megafonen 4 | Linköping | Linköping | Warehouse/logistics | — | 3,372 |
| Q2 | Matrosen 1 | Kalmar | Kalmar | Office | — | 2,259 |
| Q3 | Backa 21:8 | Gothenburg | Gothenburg | Warehouse/logistics | — | 17,767 |
| Q4 | Omformaren 6 | Västerås | Västerås | Office | — | 9,865 |
| Q4 | Broby 11:6 | Stockholm | Sigtuna | Office | — | 942 |
| Q4 | Broby 12:6 | Stockholm | Sigtuna | Warehouse/logistics | — | 1,000 |
| Q4 | Broby 12:9 | Stockholm | Sigtuna | Warehouse/logistics | — | 1,545 |
| Q4 | Domnarvet 11 | Stockholm | Stockholm | Office | — | 3,673 |
| Q4 | Del av Skruven 3 | Borås | Borås | Retail | — | 18,923 |
| Total | — | 169,955 |
During the year, the Örebro Entré project, the property Olaus Petri 3:234, of a total of approximately 19,000 square meters was completed. Tenants are Scandic Hotels, WSP, Tietoevry, Member 24, the Swedish Transport Administration and the County Administrative Board.
PROJECT DEVELOPMENT
Corem's project development takes place mainly in connection with new lettings and to adapt and modernize premises and properties, thereby increasing the rental value.
During 2024, SEK 1,343 million (1,993) was invested in the property portfolio for new construction, extensions and refurbishments. As at 31 December 2024, the remaining investment volume amounted to SEK 1,075 million (1,001). At that time, there were altogether four ongoing projects with an estimated investment exceeding SEK 50 million each. The total area-based occupancy rate in these projects amounts to 88 per cent. The projects' combined area comprises 36,309 sq.m. with a remaining investment of SEK 661 million.
The K1 Nacka Strand housing project was completed in 2024. The project included new production of a total of 60 apartments with a total area of 3,700 sq.m., and all of the apartments were sold at the end of the 2024.
Commercial projects in Sweden
During the quarter, a school for AcadeMedia was completed on the property Furan 2 in central Nyköping, where the former school burned down. The pupils and teachers moved into the new premises at the start of the spring term in 2025.
In Gothenburg, at the property Majorna 219:7, tenant adaptation is underway for the Coast Guard. The premises will house the Coast Guard's Gothenburg office with workplaces for around 90 employees.
COREM'S LARGEST ONGOING COMMERCIAL PROJECTS
Move-in is planned for the second quarter of 2026.
In Kista, the property Helgafjäll 5, tenant adaptation is underway for Mycronic. The property is located in central Kista by the square next to the Kista fair. Move-in is planned for the third quarter of 2025.
Commercial projects in New York
Corem owns three project properties in Manhattan in New York: 28&7, 1245 Broadway and 417 Park Avenue.
The projects 28&7 and 1245 Broadway, both new construction of high-quality office buildings, are nearing completion. In both projects, the exterior has now been completed and interior tenant adaptation is underway in pace with tenants moving in. As at 31 December, 30 lease agreements were signed, which corresponds to an area occupancy rate of 95 per cent in 28&7 and 77 per cent at 1245 Broadway, regarding signed lease agreements. On 31 December, the contract value of the leases in New York amounted to USD 23.1 million, approximately SEK 250 million, which is equivalent to approximately SEK 11,000 per sq.m.
The property 1245 Broadway has a land lease agreement, where right-of-use assets and leasing liabilities are recorded in the balance sheet.
The development property 417 Park Avenue has a building right for the new construction of around 33,000 sq.m. of office space. Preliminary planning is underway and construction is planned to start in 2025 at the earliest.
| City | Property | Description | Let area, sq.m. |
Project area, sq.m. |
Estimated investment, SEKm |
Remaining investment, SEKm |
Rental value, SEKm |
Completion, year/quarter |
|---|---|---|---|---|---|---|---|---|
| New York | 1245 Broadway1 | New construction, office premises | 13,521 | 17,575 | 2,101 | 406 | 226 | 25Q3 |
| New York | 28&71 | New construction, office premises | 8,857 | 9,291 | 1,100 | 117 | 101 | 25Q2 |
| Stockholm | Helgafjäll 5 | Tenant adaptation | 6,038 | 6,038 | 84 | 82 | 15 | 25Q3 |
| Gothenburg Majorna 219:7 | Tenant adaptation | 3,405 | 3,405 | 56 | 56 | 10 | 26Q2 | |
| TOTAL | 31,821 | 36,309 | 3,341 | 661 | 352 |
1) Estimated and remaining investment of projects in New York is based on the SEK/USD exchange rate on 31 December 2024.
Urban development, Globen area, Stockholm
The Globen area is one of the City of Stockholm's largest development areas, with workplaces, homes, service, culture, sport and commerce, where Corem is one of several players. A central component is the development of Globen Shopping, with new entrances that provide natural connections between the event area and the Slakthus area, and a vibrant city street along Arenavägen.
A new zoning plan has come into force in the area in relation to the construction of the Stockholm University of the Arts and a new square. In addition, the construction of a new metro station is in progress under ground level.
1245 Broadway, New York Corem's largest ongoing project is a 23-storey office building at 1245 Broadway.
Helgafjäll 5, Stockholm In Kista, the property Helgafjäll 5, remodeling and tenant adaptation are in progress for Mycronic with planned move-in the third quarter 2025.
Majorna 219:7, Gothenburg
In Gothenburg, the property Majorna 219:7, several projects are in progress, including a major project for the Coast Guard with planned movein the second quarter of 2026.
DISTRIBUTION OF PROPERTY HOLDINGS
Corem's property holding is divided into Stockholm, West, East and International. Stockholm consists of Stockholm, Uppsala, Västerås and Örebro. West consists of Gothenburg, Borås, Malmö and Halmstad. East consists of Linköping, Norrköping, Nyköping and Kalmar.
The international operations are divided into Copenhagen and New York.
Previous years, in the table below, have been adjusted since Stockholm Logistics is now included in Stockholm and after individual reclassification of properties.
INCOME STATEMENT ITEMS AND INVESTMENTS
| Income, SEKm | Property costs, SEKm | Net operating income, SEKm |
Operating margin, % | Investments, SEKm | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2024 Jan–Dec |
2023 Jan–Dec |
2024 Jan–Dec |
2023 Jan–Dec |
2024 Jan–Dec |
2023 Jan–Dec |
2024 Jan–Dec |
2023 Jan–Dec |
2024 Jan–Dec |
2023 Jan–Dec |
|
| Stockholm | 2,021 | 2,237 | –763 | –781 | 1,258 | 1,456 | 62 | 65 | 362 | 781 |
| East | 684 | 774 | –226 | –238 | 458 | 536 | 67 | 69 | 162 | 155 |
| West | 791 | 837 | –254 | –272 | 537 | 565 | 68 | 68 | 146 | 188 |
| International – Copenhagen | 66 | 287 | –23 | –36 | 43 | 251 | 65 | 87 | 39 | 28 |
| International – New York | 133 | 109 | –67 | –35 | 66 | 74 | 50 | 68 | 634 | 841 |
| Total | 3,695 | 4,244 | –1,333 | –1,362 | 2,362 | 2,882 | 64 | 68 | 1,343 | 1,993 |
| Investment portfolio | 3,496 | 3,967 | –1,216 | –1,223 | 2,280 | 2,744 | 65 | 69 | 501 | 791 |
| Development portfolio | 199 | 277 | –117 | –139 | 82 | 138 | 41 | 50 | 842 | 1,202 |
| Total | 3,695 | 4,244 | –1,333 | –1,362 | 2,362 | 2,882 | 64 | 68 | 1,343 | 1,993 |
KEY FIGURES OF PROPERTY HOLDINGS
| No. of properties | Fair value, SEKm | Rental value, SEKm | Economic occupancy rate, % |
Lettable area, 000 sq.m. |
||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2024 31 Dec |
2023 31 Dec |
2024 31 Dec |
2023 31 Dec |
2024 31 Dec |
2023 31 Dec |
2024 31 Dec |
2023 31 Dec |
2024 31 Dec |
2023 31 Dec |
|
| Stockholm | 121 | 130 | 29,366 | 31,444 | 2,440 | 2,407 | 83 | 84 | 1,134 | 1,157 |
| East | 69 | 88 | 8,082 | 8,682 | 764 | 786 | 88 | 90 | 515 | 581 |
| West | 92 | 100 | 9,992 | 10,236 | 874 | 881 | 87 | 88 | 564 | 622 |
| International – Copenhagen | 4 | 5 | 1,507 | 2,138 | 75 | 118 | 79 | 82 | 38 | 56 |
| International – New York1 | 3 | 3 | 6,258 | 5,533 | 192 | 130 | 100 | 100 | 17 | 12 |
| Total | 289 | 326 | 55,205 | 58,033 | 4,345 | 4,322 | 86 | 87 | 2,268 | 2,428 |
| Investment portfolio | 259 | 294 | 46,240 | 48,939 | 3,992 | 3,923 | 86 | 87 | 2,130 | 2,234 |
| Development portfolio | 30 | 32 | 8,965 | 9,094 | 353 | 399 | 76 | 81 | 138 | 194 |
| Total | 289 | 326 | 55,205 | 58,033 | 4,345 | 4,322 | 86 | 87 | 2,268 | 2,428 |
1) Rental value, Economic Occupancy rate and Lettable area refer to active leasing contracts, as well as completed areas in rentable condition.
Financing
INTEREST-BEARING LIABILITIES
On 31 December 2024, interest-bearing liabilities amounted to SEK 31,376 million (33,593). Accrued borrowing overheads amounted to SEK 230 million (258), which entails interest-bearing liabilities in the balance sheet of SEK 31,146 million (33,335).
Corem's interest-bearing liabilities are mainly secured by mortgages and/or shares in subsidiaries. Unsecured interest-bearing liabilities consist of commercial paper and unsecured bonds, which amounted to SEK 1,256 million (50) and SEK 5,723 million (8,228) at the end of the quarter. Corem's commercial paper programme had a framework amounting to SEK 5,000 million. Outstanding commercial paper has back-up facilities in the form of unutilized credit facilities in Nordic banks.
The average period of tied-up capital amounted to 1.7 years (2.2) and the loan-to-value ratio was 54 per cent (55).
| INTEREST-BEARING NET LIABILITIES SEKm |
2024 31 Dec |
2023 31 Dec |
|---|---|---|
| Interest-bearing liabilities in balance sheet | 31,146 | 33,335 |
| Adjustment, accrued borrowing overheads | 230 | 258 |
| Interest-bearing assets | –48 | –48 |
| Current investments | — | –10 |
| Cash and cash equivalents | –586 | –429 |
| Interest-bearing net liability | 30,742 | 33,106 |
Bonds
At the end of the year, the Group had SEK 5,723 million in outstanding listed bonds, maturing in 2025 to 2027. There was one unsecured Medium Term Note programme (MTN) with a framework amounting to SEK 10,000 million, of which SEK 1,698 million was outstanding.
During the quarter, Corem repurchased bonds totalling SEK 314 million and issued new bonds of SEK 425 million maturing in May 2026.
AVERAGE INTEREST RATE, %
INTEREST MATURITY STRUCTURE
On 31 December 2024, the average interest rate in the loan portfolio was 4.6 per cent (4.4).
Interest rate swaps and interest rate caps are used to limit the interest rate risk.
At the end of the year, Corem had interest rate swaps for a nominal value of SEK 25,012 million (21,012), and interest rate caps for SEK 1,325 million (1,682) which together correspond to 84 per cent of the interest-bearing liabilities.
Together with fixed interest loans, 86 per cent of the interestbearing liabilities carried fixed interest at the end of the year. The swaps run with an average remaining term of 3.0 years and an average fixed interest rate of 2.0 per cent. On 31 December 2024, the market value of the interest rate derivatives portfolio amounted to net SEK 84 million (303).
Changes in the value of derivatives amounted to SEK 293 million (–919) during the quarter and to SEK –219 million (–1,000) during the year.
The average period of fixed interest amounted to 2.6 years (2.6) at year-end, taking derivatives into account. The interest coverage ratio amounted to 1.7 multiples (1.9).
LIQUID FUNDS
On 31 December 2024, cash and cash equivalents amounted to SEK 586 million (429). Restricted cash of SEK 133 million has been included in cash and cash equivalents in accordance with the IFRS IC clarification about funds that may only be used for a particular purpose due to an agreement with a third party.
In addition, there were unutilized credit facilities, including backup facilities for outstanding commercial paper of SEK 3,071 million, of which SEK 2,945 million can be used immediately with existing collateral. The remaining amount can be used if securities are added as well as to some extent to finance ongoing projects. The net interestbearing debt amounted to SEK 30,742 million (33,106).
ADJUSTED EQUITY RATIO, %
Adjusted equity ratio
INTEREST COVERAGE RATIO, MULTIPLE
RATING
On 23 December 2024, Corem received an updated credit rating from the Scope Ratings credit rating company. The update confirmed the credit rating BBB- with negative outlook.
EQUITY
At the end of the year, the Group's equity, attributable to the parent company's shareholders, amounted to SEK 21,511 million (22,003), of which SEK 1,132 million (1,300) refers to hybrid bonds. Equity amounted to SEK 12.09 (13.58) per ordinary share of class A and B, SEK 289.59 (289.59) of class D and SEK 312.72 (312.72) per preference share. Net asset value (NAV) per ordinary share of class A and B amounted to SEK 15.97 (17.57).
For further information about changes in equity, see page 20.
Hybrid bonds
Corem, through its subsidiary Corem Kelly, has a perpetual hybrid bond of SEK 1,132 million (1,300), which runs at a variable interest rate of 3 months Stibor plus 8 percentage points margin. Hybrid bonds of SEK 20 million were repurchased during the quarter.
Equity ratio
At year-end, the adjusted equity ratio amounted to 42 per cent (41) and the equity ratio to 35 per cent (34).
CASH FLOW
The Group's cash flow from operating activities, before changes in working capital, amounted to SEK 1,040 million (1,318) during the year.
Cash flow from investing activities during the year amounted to SEK 1,668 million (13,832) which partly consists of property divestments corresponding to SEK 2,983 million (13,248). Cash flow from financing activities amounted to SEK –2,445 million (–15,096) and has been positively affected by completed new issue with SEK 1,007 million and negatively by net amortizations of loans corresponding to SEK 2,475 million (14,128).
SHAREHOLDING
Corem's holding in Klövern
The holding in Klövern was valued at SEK 1,469 million (1,340) at yearend. The holding is classified as Financial assets valued at fair value.
FIXED INTEREST AND TIED-UP CAPITAL PERIODS
| Fixed interest | Tied-up capital | |||||
|---|---|---|---|---|---|---|
| Maturity year | Loan volume, SEKm |
Contract volume, SEKm |
Utilised, SEKm |
Of which outstanding bonds, SEKm |
Not utilised, SEKm |
|
| Variable1 | 5,862 | — | — | — | — | |
| 2025 | 4,490 | 17,939 | 16,718 | 1,698 | 1,221 | |
| 2026 | 5,500 | 9,431 | 7,581 | 1,675 | 1,850 | |
| 2027 | 4,076 | 3,194 | 3,194 | 2,350 | — | |
| 2028 | 2,074 | 707 | 707 | — | — | |
| 2029 | 7,074 | 917 | 917 | — | — | |
| Later | 2,300 | 2,259 | 2,259 | — | — | |
| Total | 31,376 | 34,447 | 31,376 | 5,723 | 3,071 |
1) Of the floating volume, SEK 1,325 is covered by the interest cap.
BOND OVERVIEW 31.12.20241
| Type | Issued | Maturity | Issuer | Outstanding volume 31.12.2024, SEKm |
Outstanding volume 13.02.2025, SEKm |
Interest rate, % |
|---|---|---|---|---|---|---|
| Green unsecured MTN 202 ² | Feb-21 | Feb-25 | Kelly | 1,498 | — | 3m Stibor +3.25 |
| Unsecured MTN 204 | Mar-21 | Sep-25 | Kelly | 200 | 200 | 3m Stibor +3.50 |
| Green unsecured | Feb-24 | May-26 | Corem | 1,675 | 1,675 | 3m Stibor +3.75 |
| Green unsecured | Apr-24 | Jan-27 | Corem | 1,050 | 1,050 | 3m Stibor +3.75 |
| Green unsecured | Sep-24 | Sep-27 | Corem | 1,300 | 1,300 | 3m Stibor +2.95 |
| Green unsecured | Jan-25 | Apr-28 | Corem | — | 1,000 | 3m Stibor +4.25 |
| Total | 5,723 | 5 225 |
1) Refers to bonds issued by Corem Property Group AB ("Corem") and the subsidiary Corem Kelly AB.
2) Redeemed per maturity 10 February 2025.
The share and shareholders
Corem Property Group is listed on Nasdaq Stockholm Large Cap with four classes of shares: ordinary shares of class A, ordinary shares of class B, ordinary shares of class D and preference shares.
On 31 December 2024, Corem had a total of 1,243,489,446 shares, of which 93,730,797 were ordinary shares of class A, 1,129,797,545 ordinary shares of class B, 7,545,809 ordinary shares of class D and 12,415,295 preference shares. Each ordinary share of class A entitles the holder to one vote, while an ordinary share of class B, an ordinary share of class D and a preference share entitles the holder to a tenth of a vote each.
NEW ISSUE OF ORDINARY SHARES
During the year a directed new issue took place. Altogether, 106,206,165 ordinary shares of class B were issued. The directed new issue was carried out as two issue decisions, one as a directed new issue of 77,560,333 ordinary shares of class B to Swedish and institutional investors, and one as a directed new issue of 28,645,832 ordinary shares of class B to M2 Asset Management AB (publ) and Gårdarike AB. The latter issue decision was approved at an extraordinary shareholders´ meeting of Corem.
REPURCHASE OF OWN SHARES
Corem did not repurchase any of its own shares during the year. As at 31 December 2024, Corem held 2,913,825 repurchased ordinary shares of class A, 35,691,000 repurchased shares of class B and 42,000 repurchased ordinary shares of class D. The total market value at that time amounted to SEK 268 million. The shares are repurchased at an average price of SEK 8.80 per ordinary share of class A, SEK 19.06 per ordinary share of class B and SEK 297.85 per ordinary share of class D.
Fairway House, the property 383 Eksercerpladsen, in Copenhagen.
CONVERSION OF CLASS A ORDINARY SHARES
In February and August each year, holders of ordinary shares of class A have the right to request that the share be converted into ordinary shares of class B. No request for conversion of shares was received, neither during the first nor in the second conversion period of 2024.
| SHARE DATA, 31 Dec 2024 | |
|---|---|
| Market capitalisation | SEK 13.2 bn |
| Market place | Nasdaq Stockholm, Large Cap |
| LEI no. | 213800CHXQQD7TSS1T59 |
| No. of shareholders | 44,611 |
| Ordinary share, class A | |
| No. of shares | 93,730,797 |
| Closing price | SEK 6.58 |
| ISIN | SE0010714279 |
| Ordinary share, class B | |
| No. of shares | 1,129,797,545 |
| Closing price | SEK 6.69 |
| ISIN | SE0010714287 |
| Ordinary share, class D | |
| No. of shares | 7,545,809 |
| Closing price | SEK 244.50 |
| ISIN | SE0015961594 |
| Preference share | |
| No. of shares | 12,415,295 |
| Closing price | SEK 258.00 |
| ISIN | SE0010714311 |
DIVIDEND PER ORDINARY SHARE A/B, SEK
NET ASSET VALUE (NAV) PER ORDINARY SHARE A/B, SEK
LARGEST SHAREHOLDERS – 31 DECEMBER 2024
| Shareholder | No. ordinary shares A, thousands |
No. ordinary shares B, thousands |
No. ordinary shares D, thousands |
No. preference shares, thousands |
Share of capital, % |
Share of votes, % |
|---|---|---|---|---|---|---|
| Rutger Arnhult via companies1 | 44,106 | 496,642 | 3,283 | — | 43.75 | 46.53 |
| Gårdarike1 | 31,537 | 33,811 | 55 | 19 | 5.26 | 17.27 |
| Handelsbanken fonder | — | 104,076 | 123 | — | 8.38 | 5.15 |
| Länsförsäkringar fondförvaltning | — | 47,369 | — | — | 3.81 | 2.34 |
| State Street Bank & Trust Co | — | 43,483 | 31 | 132 | 3.51 | 2.16 |
| JP Morgan Chase Bank N.A. | — | 23,090 | — | 255 | 1.88 | 1.15 |
| Avanza Pension | 257 | 16,037 | 336 | 1,766 | 1.48 | 1.02 |
| Swedbank Robur fonder | 1,593 | 4,000 | — | — | 0.45 | 0.99 |
| Prior & Nilsson | — | 18,226 | — | — | 1.47 | 0.90 |
| Fredrik Rapp privat and via companies | 750 | 9,500 | — | — | 0.82 | 0.84 |
| AMF Tjänstepension AB | — | 15,000 | — | — | 1.21 | 0.74 |
| SEB Life International | 1,101 | 2,776 | 31 | 26 | 0.32 | 0.68 |
| Carnegie Fonder | — | 13,606 | — | — | 1.09 | 0.67 |
| Livförsäkringsbolaget Skandia, Ömsesidigt | 665 | 5,303 | — | 0 | 0.48 | 0.59 |
| CBNY Norges Bank | — | 11,693 | 53 | — | 0.94 | 0.58 |
| Other shareholders | 10,809 | 249,494 | 3,591 | 10,217 | 22.04 | 18.37 |
| TOTAL OUTSTANDING SHARES, THOUSANDS |
90,817 | 1,094,107 | 7,504 | 12,415 | 96.89 | 100.00 |
| Repurchased own shares2 | 2,914 | 35,691 | 42 | — | 3.11 | |
| TOTAL REGISTERED SHARES, THOUSANDS |
93,731 | 1,129,798 | 7,546 | 12,415 | 100.00 | 100.00 |
1) Due to routines at Ålandsbanken, Banque Internationale à Luxembourg and Union Bancaire Privée, the banks have been registered in Euroclear's share register as owners of part of their clients' Corem shares. An adjustment has been made to reflect this, in order to give a fair view of the Company's largest shareholders. 2) Repurchased shares have no voting rights and are not entitled to dividends.
Other information
ACCOUNTING POLICIES
This interim report for the Group has been prepared in compliance with the Annual Accounts Act and IAS 34 Interim Financial Reporting and for the Parent Company in compliance with the Annual Accounts Act and RFR 2 Accounting for legal entities. Disclosures under IAS 34 16A are disclosed in the financial reports and are also included in other parts of the interim report.
In the Group, the properties are valued in compliance with Level 3 in the IFRS valuation hierarchy The fair value of financial instruments in the Group reported as accrued acquisition value agrees essentially with the carrying amounts. The same applies to the Parent Company. No changes in the categorization of financial instruments took place during the period. Financial assets valued at fair value which are listed in a market, are valued in accordance with Level 1 of the valuation hierarchy while the holding in Klövern AB, which is not listed, is valued in accordance with Level 3 of the valuation hierarchy. The holding in Klövern AB is valued according to the discounted cash flows. Derivatives are valued in accordance with Level 2 of the valuation hierarchy
No new or changed standards or interpretations from IASB have had any material impact on the Interim Report and the accounting policies applied are those described in Note 1 of Corem's Annual Report for 2023.
Rounding differences may arise in the report.
DEFINITIONS
A number of financial key ratios and measures are presented in the report which are not defined according to IFRS. Corem believes these key ratios and measures provide valuable supplementary information to investors and the Company's management in analysing the Company's operations. As not all companies calculate financial key ratios and measures in the same way, these are not always comparable. On the Company's website, the definitions of selected key ratios and measures are presented as well as an appendix showing the calculations of selected key ratios that are not directly identifiable from the financial reports.
SUSTAINABILITY
Sustainability is an important part of Corem's business and is integrated in the daily operations. It embraces social, ecological and economic sustainability and is focused on the areas Good business partner and long-term value development, Attractive employer, Reduced climate impact and Sustainable and living city. Sustainability data is reported on the website on a full-year basis.
EMPLOYEES
Locally based property management with own staff, in order to achieve closeness to customers and in-depth market knowledge, is an integral part of Corem's strategy. Corem has its registered office in Stockholm where the head office is also located.
The average number of employees in the Group during the period was 283 (309). 47 per cent (47) of the employees were women.
RISKS
Corem has a continuous process to identify the material risks that may affect the Company's financial position and earnings. For more information on identifiable risks, see Corem's Annual and Sustainability Report. No changes to risk assessment took place during the current year.
Main risks are change in value of properties, the business cycle and market conditions, project operations, property transactions, changed laws and regulations, sustainability, financing, unlisted holdings, employees, business ethics and IT security.
DISPUTES
Corem has no ongoing disputes that could have a significant effect on earnings.
TRANSACTIONS WITH RELATED PARTIES
Intra-group services and transactions with related parties are charged at market prices and on commercial terms Intra-group services consist of administrative services and intra-group interest rates.
Transactions with Wästbygg amounted during the period to SEK 21 million (44). Wästbygg is an associated company of the M2-Gruppen, which is controlled by Rutger Arnhult.
In addition, the Corem group purchased legal services during the year from Walthon Advokater, of which the Chairman of the Board Patrik Essehorn is a shareholder, in an amount of SEK 10 million (17).
THE PARENT COMPANY
The parent company's business consists of the sale of management services to the group's subsidiaries as well as strategic management and administration for the company's listing on Nasdaq Stockholm. Net sales amounted to SEK 500 million (537). Net profit for the period amounted to SEK –293 million (–276). Interest-bearing liabilities amounted to SEK 10,207 million (5,943) which are largely lent to other group companies.
ANNUAL GENERAL MEETING 2025
The annual general meeting of Corem Property Group AB (publ) will be held on 23 April 2025.
DIVIDEND
The Board proposes a dividend of SEK 0.10 (0.10) per ordinary share of Class A and B, and SEK 20.00 (20.00) per ordinary share of Class D and preference share. It is proposed that the dividend for the ordinary shares of Class A and Class B be paid in four instalments, of which two payments of SEK 0.02 and two payments of SEK 0.03, while it is proposed that the dividend for ordinary shares of Class D and preference shares be paid in four instalments, each of SEK 5.00. It is proposed that the record days for dividend on ordinary shares of Class A, B, D and preference shares be the last banking day in the respective calendar quarter with the expected payment three banking days thereafter.
EVENTS AFTER THE END OF THE PERIOD
Senior unsecured green bonds of SEK 1,000 million were issued under a framework of SEK 2,000 million, with a term of 3.25 years, carrying a variable interest rate of 3-month Stibor plus 425 basis points and maturity on 28 April 2028.
Bonds, with maturity in February 2025, were redeemed at maturity. Outstanding amount was then SEK 1,403 million.
In February, Corem signed an agreement to divest a portfolio of eight properties in Halmstad at an underlying property value of SEK 520 million.
Stockholm, 13 February 2025
The Board of Directors of Corem Property Group AB (publ)
This report has not been reviewed by Corem's auditors.
During the fourth quarter, Corem signed a five-year lease for nearly 1,800 square meters of office space in the Idéläran 1 property in Linköping. The property is located in the Mjärdevi area, within Linköping Science Park and opposite Linköping University. Move-in is planned for the second quarter 2025.
Consolidated Income Statement in brief
| SEKm | 2024 3 months Oct–Dec |
2023 3 months Oct–Dec |
2024 12 months Jan–Dec |
2023 12 months Jan–Dec |
|---|---|---|---|---|
| Income | 915 | 1,016 | 3,695 | 4,244 |
| Property costs | –361 | –384 | –1,333 | –1,362 |
| Net operating income | 554 | 632 | 2,362 | 2,882 |
| Central administration | –38 | –43 | –160 | –179 |
| Net financial items | –338 | –366 | –1,288 | –1,464 |
| Profit from property management | 178 | 223 | 914 | 1,239 |
| Profit/loss, residential development | 0 | — | –1 | — |
| Share of earnings in associated companies | 0 | 0 | 0 | –1,076 |
| Value changes, properties | –1,244 | –2,653 | –1,717 | –8,476 |
| Value changes, financial assets | –7 | –6 | 125 | 87 |
| Value changes, derivatives | 293 | –919 | –219 | –1,000 |
| Impairment, goodwill | –142 | –197 | –307 | –589 |
| Profit/loss before tax | –922 | –3,552 | –1,205 | –9,815 |
| Tax | 132 | 487 | 147 | 1,816 |
| Net profit/loss for the period | –790 | –3,065 | –1,058 | –7,999 |
| Net profit for the year attributable to: | ||||
| Parent Company shareholders | –790 | –3,068 | –1,059 | –7,970 |
| Holdings without controlling influence | 0 | 3 | 1 | –29 |
| Profit/loss for the period | –790 | –3,065 | –1,058 | –7,999 |
| Earnings per share | ||||
| Earnings per ordinary share of Class A and B, SEK | –0.78 | –2.97 | –1.43 | –7.88 |
| No. of shares, thousands | ||||
| Number of outstanding ordinary shares A and B | 1,184,924 | 1,078,717 | 1,184,924 | 1,078,717 |
| Average number of outstanding ordinary shares A and B | 1,184,924 | 1,078,717 | 1,124,774 | 1,078,717 |
| Number of outstanding ordinary shares D | 7,504 | 7,504 | 7,504 | 7,504 |
| Number of outstanding preference shares | 12,415 | 12,415 | 12,415 | 12,415 |
No dilution effect exists as there are no potential shares (for example, convertibles).
Consolidated Report of Comprehensive Income in brief
| SEKm | 2024 3 months Oct–Dec |
2023 3 months Oct–Dec |
2024 12 months Jan–Dec |
2023 12 months Jan–Dec |
|---|---|---|---|---|
| Net profit/loss for the period | –790 | –3,065 | –1,058 | –7,999 |
| Items that can later be reclassified to the income statement | ||||
| Currency conversion difference for international operations | 406 | –555 | 382 | –328 |
| Other comprehensive income after tax | 406 | –555 | 382 | –328 |
| Net comprehensive income for the period | –384 | –3,620 | –676 | –8,327 |
| Net comprehensive income attributable to: | ||||
| Parent Company shareholders | –385 | –3,623 | –677 | –8,298 |
| Holdings without controlling influence | 1 | 3 | 1 | –29 |
| Net comprehensive income for the period | –384 | –3,620 | –676 | –8,327 |
Consolidated Balance Sheet in brief
| SEKm | 2024 31 Dec |
2023 31 Dec |
|---|---|---|
| ASSETS | ||
| Non-current assets | ||
| Goodwill | 1,478 | 1,785 |
| Investment properties | 55,205 | 58,033 |
| Right-of-use assets | 1,827 | 1,375 |
| Shares in associated companies | — | 0 |
| Financial assets valued at fair value | 1,469 | 1,351 |
| Derivatives | 231 | 562 |
| Other non-current assets | 133 | 144 |
| Total non-current assets | 60,343 | 63,250 |
| Current assets | ||
| Properties classified as current assets | — | 290 |
| Other current assets | 856 | 881 |
| Cash and cash equivalents | 586 | 429 |
| Total current assets | 1,442 | 1,600 |
| TOTAL ASSETS EQUITY AND LIABILITIES |
61,785 | 64,850 |
| Equity attributable to parent company shareholders1 | 21,511 | 22,003 |
| Equity attributable to holdings without controlling influence | 0 | 14 |
| Total shareholders' equity Long-term liabilities |
21,511 | 22,017 |
| Interest-bearing liabilities | 14,238 | 19,505 |
| Leasing liabilities | 1,827 | 1,375 |
| Deferred tax liability | 5,472 | 5,709 |
| Derivatives | 147 | 259 |
| Other liabilities | 60 | 41 |
| Total long-term liabilities | 21,744 | 26,889 |
| Current liabilities | ||
| Interest-bearing liabilities | 16,908 | 13,830 |
| Other liabilities | 1,622 | 2,114 |
| Total current liabilities | 18,530 | 15,944 |
| Total liabilities | 40,274 | 42,833 |
| TOTAL EQUITY AND LIABILITIES | 61,785 | 64,850 |
1) Of which hybrid bond SEK 1,132 million (1,300).
Consolidated change in equity in brief
| SEKm | Parent Company shareholders1 |
Holdings without controlling influence |
Total |
|---|---|---|---|
| Opening equity, 01.01.2023 | 31,268 | 43 | 31,311 |
| Comprehensive income for the period | –8,298 | –29 | –8,327 |
| Dividend | –830 | — | –830 |
| Hybrid bonds, interest | –138 | — | –138 |
| Change in holdings without controlling influence | 0 | 0 | 0 |
| Closing equity, 31.12.2023 | 22,003 | 14 | 22,017 |
| Comprehensive income for the period | –677 | 1 | –676 |
| Share issue | 1,007 | — | 1,007 |
| Dividend | –515 | — | –515 |
| Hybrid bonds, interest | –150 | — | –150 |
| Hybrid bonds, repurchase | –168 | — | –168 |
| Change in holdings without controlling influence | 11 | –15 | –4 |
| Closing equity, 31.12.2024 | 21,511 | 0 | 21,511 |
1) Of which hybrid bond in closing balance with SEK 1,132 million and opening balance with SEK 1,300 million.
Consolidated statement of cash flow
| SEKm | 2024 3 months Oct–Dec |
2023 3 months Oct–Dec |
2024 12 months Jan–Dec |
2023 12 months Jan–Dec |
|---|---|---|---|---|
| Operating activities | ||||
| Net operating income | 554 | 632 | 2,362 | 2,882 |
| Central administration | –38 | –43 | –160 | –179 |
| Depreciation, etc. | 6 | 5 | 22 | 23 |
| Interest received, etc. | 5 | 14 | 13 | 34 |
| Interest paid, etc. | –242 | –339 | –1,111 | –1,351 |
| Interest expense, lease contracts attributable to site leasehold contracts | –20 | –21 | –77 | –78 |
| Income tax paid | –8 | –5 | –9 | –13 |
| Cash flow from operating activities before changes in working capital | 257 | 243 | 1,040 | 1,318 |
| Change in properties classified as current assets | 0 | –21 | –2 | –84 |
| Change in current receivables | 52 | 148 | –68 | 264 |
| Change in current liabilities | 42 | 1 | –50 | –780 |
| Cash flow from operating activities | 351 | 371 | 920 | 718 |
| Investing activities | ||||
| Investments in new constructions, extensions and refurbishment | –376 | –383 | –1,343 | –1,993 |
| Divestment of investment properties | 500 | 5,203 | 2,983 | 13,248 |
| Divestment of shareholdings | — | — | — | 1,190 |
| Change of shares in associated companies | — | 0 | — | 1,383 |
| Acquisition holdings without controlling influence | 0 | — | –4 | — |
| Change in other non-current assets | –2 | 3 | 32 | 4 |
| Cash flow from investing activities | 122 | 4,823 | 1,668 | 13,832 |
| Financing activities | ||||
| Dividend paid to parent company shareholders | –123 | –208 | –659 | –830 |
| Share issue | — | — | 1,007 | — |
| Hybrid bonds, interest and repurchase | –53 | –40 | –318 | –138 |
| Loans raised | 3,275 | 2,385 | 11,716 | 10,661 |
| Amortised loans | –3,571 | –7,540 | –14,191 | –24,789 |
| Cash flow from financing activities | –472 | –5,403 | –2,445 | –15,096 |
| Cash flow for the period | 1 | –209 | 143 | –546 |
| Cash and cash equivalents at beginning of period | 575 | 644 | 429 | 979 |
| Exchange rate difference in cash and cash equivalents | 10 | –6 | 14 | –4 |
| Cash and cash equivalents at end of period | 586 | 429 | 586 | 429 |
Parent Company Income Statement in brief
| SEKm | 2024 3 months Oct–Dec |
2023 3 months Oct–Dec |
2024 12 months Jan–Dec |
2023 12 months Jan–Dec |
|---|---|---|---|---|
| Net sales | 121 | 135 | 500 | 537 |
| Cost of services sold | –83 | –90 | –340 | –358 |
| Gross profit | 38 | 45 | 160 | 179 |
| Central administration | –38 | –45 | –160 | –179 |
| Operating profit | 0 | 0 | 0 | 0 |
| Earnings from shares in group companies | –331 | –398 | –85 | –69 |
| Value changes derivatives | –10 | — | –10 | — |
| Interest income and similar income statement items | 113 | 123 | 402 | 292 |
| Interest expense and similar income statement items | –177 | –106 | –619 | –497 |
| Profit/loss after financial items | –405 | –381 | –312 | –274 |
| Group contributions, made/received | 1 | –2 | 1 | –2 |
| Profit/loss before tax | –404 | –383 | –311 | –276 |
| Tax | 18 | — | 18 | — |
| Net Profit/loss for the period | –386 | –383 | –293 | –276 |
Parent Company Balance Sheet in brief
| SEKm | 2024 31 Dec |
2023 31 Dec |
|---|---|---|
| ASSETS | ||
| Other intangible non-current assets | 5 | 6 |
| Machinery and equipment | 4 | 5 |
| Shares in group companies | 20,492 | 21,456 |
| Receivables from group companies | 12,793 | 7,192 |
| Other current receivables | 195 | 31 |
| Cash and cash equivalents | 110 | 134 |
| TOTAL ASSETS | 33,599 | 28,824 |
| EQUITY AND LIABILITIES | ||
| Restricted equity | 2,487 | 2,275 |
| Unrestricted equity | 19,572 | 19,584 |
| Total equity | 22,059 | 21,859 |
| Interest-bearing liabilities | 10,207 | 5,943 |
| Liabilities to group companies | 902 | 393 |
| Non-interest-bearing liabilities | 431 | 629 |
| TOTAL EQUITY AND LIABILITIES | 33,599 | 28,824 |
Key ratios
| 2024 3 months Oct–Dec |
2023 3 months Oct–Dec |
2024 12 months Jan–Dec |
2023 12 months Jan–Dec |
2022 12 months Jan–Dec |
|
|---|---|---|---|---|---|
| Property-related | |||||
| Fair value of investment properties, SEKm | 55,205 | 58,033 | 55,205 | 58,033 | 78,387 |
| Yield requirement, valuation, % | 6.0 | 5.8 | 6.0 | 5.8 | 5.2 |
| Rental value, SEKm | 4,345 | 4,322 | 4,345 | 4,322 | 4,940 |
| Lettable area, sq.m. | 2,268,357 | 2,428,426 | 2,268,357 | 2,428,426 | 3,194,535 |
| Economic occupancy rate, % | 86 | 87 | 86 | 87 | 89 |
| Area-based occupancy rate, % | 77 | 78 | 77 | 78 | 83 |
| Operating margin, % | 61 | 62 | 64 | 68 | 65 |
| No. of investment properties | 289 | 326 | 289 | 326 | 458 |
| Average remaining lease contract period, years | 3.3 | 3.4 | 3.3 | 3.4 | 3.9 |
| Financial | |||||
| Return on equity, % | –14.6 | –51.5 | –4.9 | –29.9 | –6.0 |
| Adjusted equity ratio, % | 42 | 41 | 42 | 41 | 39 |
| Equity ratio, % | 35 | 34 | 35 | 34 | 34 |
| Interest-bearing net liability, SEKm | 30,742 | 33,106 | 30,742 | 33,106 | 45,439 |
| Loan-to-value ratio, % | 54 | 55 | 54 | 55 | 57 |
| Loan-to-value ratio, properties, % | 44 | 43 | 44 | 43 | 45 |
| Interest coverage ratio, multiple | 1.5 | 1.7 | 1.7 | 1.9 | 2.5 |
| Average interest rate, % | 4.6 | 4.4 | 4.6 | 4.4 | 3.6 |
| Average period of fixed interest, years | 2.6 | 2.6 | 2.6 | 2.6 | 1.9 |
| Average period of tied-up capital, years | 1.7 | 2.2 | 1.7 | 2.2 | 3.3 |
| Share-related | |||||
| Profit from property management per ordinary share A and B, SEK | 0.04 | 0.08 | 0.32 | 0.65 | 1.10 |
| Earnings per ordinary share, A and B, SEK | –0.78 | –2.97 | –1.43 | –7.88 | –2.25 |
| Net asset value (NAV) per ordinary share A and B, SEK | 15.97 | 17.57 | 15.97 | 17.57 | 26.42 |
| Equity per ordinary share A and B, SEK | 12.09 | 13.58 | 12.09 | 13.58 | 22.17 |
| Equity per ordinary share D, SEK | 289.59 | 289.59 | 289.59 | 289.59 | 289.59 |
| Equity per preference share, SEK | 312.72 | 312.72 | 312.72 | 312.72 | 312.72 |
| Dividend per ordinary share, A and B, SEK | — | — | 0.101 | 0.10 | 0.40 |
| Dividend per ordinary share D, SEK | — | — | 20.001 | 20.00 | 20.00 |
| Dividend per preference share, SEK | — | — | 20.001 | 20.00 | 20.00 |
| Share price ordinary share A, SEK | 6.58 | 10.65 | 6.58 | 10.65 | 10.45 |
| Share price ordinary share B, SEK | 6.69 | 10.62 | 6.69 | 10.62 | 8.39 |
| Share price ordinary share D, SEK | 244.50 | 182.00 | 244.50 | 182.00 | 170.60 |
| Share price preference share, SEK | 258.00 | 200.50 | 258.00 | 200.50 | 211.50 |
| No. of shares, thousands | |||||
| Number of outstanding ordinary shares A and B | 1,184,924 | 1,078,717 | 1,184,924 | 1,078,717 | 1,078,717 |
| Average number of outstanding ordinary shares A and B | 1,184,924 | 1,078,717 | 1,124,774 | 1,078,717 | 1,078,717 |
| Number of outstanding ordinary shares D | 7,504 | 7,504 | 7,504 | 7,504 | 7,504 |
| Number of outstanding preference shares | 12,415 | 12,415 | 12,415 | 12,415 | 12,415 |
1) Proposed dividend
Definitions
A number of financial key ratios and measures are presented in the report which are not defined according to IFRS. Corem considers that these key ratios and measures provide valuable supplementary information to investors and the company management when analysing the company's business activities. As not all companies calculate financial key ratios and measures in the same way, these are not always comparable. Definitions of selected key ratios and measures are presented below. The definitions are also shown on Corem's website (https://www.corem.se/en/investor-relations/definitions-en/). For the key ratios that are not directly identifiable from the financial statements, there is a complementary calculation appendix on the website.
Adjusted equity ratio
Equity2, adjusted for the value of derivatives including tax, repurchased shares, (based on the share price at the end of respective period) and reported deferred tax properties, less goodwill attributable to deferred tax, as well as deferred tax of 5 per cent attributable to the difference between the properties' fair value and residual value for tax purposes, as a per centage of total assets adjusted for goodwill attributable to deferred tax and rights of use assets.
Annual contract value
Rent including supplements and index on an annual basis.
Average period of fixed interest
Average remaining period of fixed interest on interest-bearing liabilities and derivatives.
Average period of tied-up capital
Average remaining term of interest-bearing liabilities.
Average interest rate
Average borrowing rate for interest-bearing liabilities and derivatives.
Central administration
Central administration costs consist of costs for group management and group-wide functions.
Comparable portfolio
The properties, excluding project properties, which were included in the portfolio during the whole of the reporting period and during the whole of the comparison period. Income and costs of a one-off nature are excluded from comparable results, for example, insurance compensation and major on-billing to tenants.
Development portfolio
Properties where conversion or extension projects are in progress or planned, which lead to a higher standard or changed use of premises.
Earnings per ordinary share of class A and B
Net profit after deduction of dividend on preference shares and ordinary shares of class D and interest on hybrid bonds, in relation to the average number of outstanding ordinary shares of class A and B.
Equity per ordinary share of class A and B
Equity2 after deduction of equity attributable to preference shares and ordinary shares of class D and hybrid bonds, in relation to the number of outstanding ordinary shares of class A and B.
Equity per ordinary share of class D The ordinary share of class D's average issueprice.
Equity per preference share
The preference share's average issue price.
Equity ratio
Equity2 as a per centage of total assets.
Interest-bearing liabilities
Current and long term interest-bearing liabilities, as well as activated and capitalized borrowing costs.
Interest-bearing net debt
The net of interest-bearing liabilities minus interest-bearing assets, listed shareholdings and liquid funds.
Interest coverage ratio
Profit from property management plus share of associated companies' profit from property management, excluding financial expenses1 , divided by financial expenses1 .
Investment portfolio
Properties currently being actively managed.
Investment properties
The term investment properties in the balance sheet includes the investment portfolio as well as the development portfolio.
Lettable area
Total area available for letting.
Loan to value (LTV)
Interest-bearing liabilities after deduction for the market value of listed shareholdings, interestbearing assets and liquid funds, in relation to the fair value of the properties, the holding in Klövern and shares in associated companies.
Loan to value (LTV), properties
Interest-bearing liabilities with collateral in properties, in relation to the fair value of the properties at the end of the period.
NAV (Net Asset Value) per ordinary share of class A and B
Equity2, after deduction of equity attributable to preference shares and ordinary shares of class D, hybrid bonds and goodwill attributable to deferred tax, adding back derivatives and deferred tax liability, in relation to the number of outstanding ordinary shares of class A and B.
Net letting
Annual rent for the tenancy agreements entered into during the period, reduced for terminated tenancy agreements and bankruptcies.
Net operating income
Income minus property costs (eg operating and maintenance costs and property tax).
Occupancy rate, area Rented area divided by total lettable area.
Occupancy rate, economic
Annual contracted rent divided by rental value.
Outstanding ordinary shares
Registered shares, after deduction of repurchased shares.
Profit from property management
Net operating income, central administration and net financial income.
Profit from property management per ordinary share of class A and B
Profit from property management after deduction of dividend on preference shares and ordinary shares of class D and interest on hybrid bonds in relation to the average number of outstanding ordinary shares of class A and B.
Properties classified as current assets
Properties with ongoing production of tenantowned apartments or which are intended for future tenant-owned production.
Realized changes in value, properties
Realized property sales after deductions for the properties' most recently reported fair value and overheads at sale.
Rental value
Annual contract value with a supplement for assessed rent of vacant premises.
Return on equity
Net profit on an annual basis, as a per centage of average of opening and closing equity2.
Required yield
The required return on the residual value of property valuations.
Operating margin
Net operating income as a percentage of income.
Total number of shares
Registered shares, including repurchased shares.
Unrealized changes in value, properties
Change in fair value excluding acquisitions, divestments, investments, and currency conversion.
1) Excluding site leasehold fees and exchange rate differences
2) Equity attributable to Parent Company's shareholders.
Calendar
FINANCIAL REPORTS
| Annual report and sustainability report 2024 | Week 13 2025 |
|---|---|
| Interim Report January–March 2025 | 23 April 2025 |
| Annual General Meeting 2025 | 23 April 2025 |
| Interim Report January–June 2025 | 11 July 2025 |
| Interim Report January–September 2025 | 23 October 2025 |
DIVIDEND: PROPOSED RECORD DATES AND DIVIDEND PAYMENT DATES
| Record date for dividend on ordinary shares of class A, B, D and preference shares | 31 March 2025 |
|---|---|
| Expected payment date for dividend on ordinary shares of class A, B, D and preference shares | 3 April 2025 |
CONTACT PERSONS: Rutger Arnhult, CEO, +46 70 458 24 70, [email protected] Eva Landén, Deputy CEO, +46 10 482 76 50, [email protected]
This information is information that Corem Property Group AB (publ) is obliged to make publc pursuant to the EU Market Abuse Regulation. This nformation was submitted for publication through the agency of the contact person, set out above, at 08.00 CET on 13 February 2025.
24 COREM – YEAR-END REPORT JANUARY–DECEMBER 2024
Corem Property Group AB (publ), Box 56085.,102 17 Stockholm Visiting address: Riddargatan 13 C. Telephone: +46 10 482 70 00 Corporate ID number: 556463-9440. Registered Office: Stockholm E-mail: [email protected], website: www.corem.se Properties for the future