Annual Report • Feb 16, 2018
Annual Report
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YEAR-END REPORT
TOTAL RENTAL INCOME INCREASE WAS 28 PER CENT AND TOTALS SEK 1,700 MILLION (1,323)
PROPERTY MANAGEMENT INCOME WAS SEK 822 MILLION (539)
UNREALISED CHANGES IN VALUE OF PROPERTIES WERE SEK 402 MILLION (337) AND UNREALISED CHANGES IN VALUE OF DERIVATIVES WERE SEK 27 MILLION (91)
THE PROFIT AFTER TAX WAS SEK 1,029 MILLION (832)
EARNINGS PER SHARE WERE SEK 7.78 (8.66)*
THE BOARD OF DIRECTORS PROPOSES A DIVIDEND OF SEK 2.90 PER SHARE (2.00), TO BE EVENLY DISTRIBUTED ON TWO OCCASIONS.
| NET PROFIT FOR THE YEAR, SEK million | 2017 3 mths Oct-Dec |
2016 3 mths Oct-Dec |
2017 12 mths Jan-Dec |
2016 12 mths Jan-Dec |
|---|---|---|---|---|
| Rental income | 437 | 332 | 1,700 | 1,323 |
| Other revenue | 6 | 5 | 19 | 17 |
| Operating and central costs | -198 | -160 | -712 | -597 |
| Net financial items | -48 | -45 | -185 | -204 |
| Property management income | 197 | 132 | 822 | 539 |
| Changes in value, properties and derivatives | 71 | 198 | 439 | 418 |
| Current tax | -16 | -11 | -43 | 11 |
| Deferred tax | 4 | -53 | -189 | -136 |
| Profit after tax | 256 | 266 | 1,029 | 832 |
| Surplus ratio, % | 61 | 59 | 64 | 61 |
| Occupancy rate, % | 91 | 90 | 91 | 90 |
| Equity ratio, % | 34.9 | 31.0 | ||
| Loan-to-value ratio, properties, % | 57.1 | 58.6 | ||
| Equity per share, SEK | 51.2 | 45.3 | ||
| EPRA NAV per share, SEK | 59.7 | 56.0 |
For definitions of key ratios, see page 34.
* The number of shares have during 2017 increased by 60 million after completion of a rights issue, thus effecting share-related key ratios.
Knut Rost, CEO, +46 (0)770-33 22 00, +46 (0)70-555 89 33, [email protected]
Rolf Larsson, CFO, +46 (0)770-33 22 00, +46 (0)70-666 14 83, [email protected]
This constitutes information which Diös Fastigheter AB is required to publish under the EU's Market Abuse Regulation and the Swedish Securities Market Act. The information was submitted for publication through the above contact person on 16 February 2018, at 7:00 a.m. CET.
Nearly 100 years ago Anders Diös established the building firm that would eventually grow into one of Sweden's largest property owners. Thanks to his outstanding entrepreneurship and his faith in the future, the building firm had by the 1950s become one of the largest in Sweden. Inspired by Anders' drive, we formulated our current vision: to be the most active and sought-after landlord in our market.
We drive urban development to create growth for our tenants. By taking a simple and active approach, and by working closely with our stakeholders, we create meeting places where people can live, work and enjoy life. The company's property portfolio is concentrated to central locations in priority growth cities with an emphasis on office and retail properties.
Our business model centres on using the company's assets to create value for our stakeholders. Through efficient property management, risk-aware transactions and future-oriented project development, we add value to our assets. The value we create is evident in the fact that we are an attractive employer, manage our properties in a sustainable manner, conduct our business responsibly and focus on sustainable urban development.
To be the most active and sought-after landlord in our market.
To own and develop commercial and residential properties in priority growth cities from local offices. We create long-term values with a focus on the tenant by operating in a responsible and sustainable manner.
Our promise is that everything is possible. We strive to be perceived as simple, close and active. Simple by being open and honest. Close by having a local presence, being available and taking an interest. Active by developing, growing and taking advantage of opportunities.
| 2017-12-31 | 2017-09-30 | 2017-06-30 | 2017-03-31 | 2016-12-31 | 2016-09-30 | 2016-06-30 | 2016-03-31 | |
|---|---|---|---|---|---|---|---|---|
| Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |
| Revenue, SEKm | 443 | 436 | 435 | 405 | 337 | 335 | 334 | 335 |
| Operating surplus, SEKm | 266 | 287 | 286 | 241 | 195 | 212 | 212 | 187 |
| Property management income, SEKm | 197 | 222 | 224 | 179 | 132 | 147 | 140 | 119 |
| Profit for the period, SEKm | 256 | 192 | 255 | 326 | 266 | 229 | 194 | 143 |
| Surplus ratio, % | 61 | 67 | 66 | 60 | 59 | 64 | 64 | 57 |
| Economic occupancy rate, % | 91 | 91 | 91 | 90 | 90 | 90 | 90 | 89 |
| Return on equity, % | 3.8 | 2.9 | 3.9 | 6.0 | 6.4 | 5.8 | 5.0 | 3.7 |
| Equity ratio, % | 34.9 | 33.9 | 33.3 | 33.5 | 31.0 | 29.8 | 28.5 | 29.0 |
| Loan-to-value ratio, properties, % | 57.1 | 57.8 | 58.3 | 59.1 | 58.6 | 59.6 | 60.6 | 61.4 |
| Average interest rate at end of period, %¹ | 1.5 | 1.6 | 1.6 | 1.6 | 2.0 | 1.9 | 2.6 | 2.6 |
| Interest coverage ratio, times | 4.8 | 5.5 | 5.8 | 5.2 | 3.9 | 3.8 | 3.5 | 3.1 |
| Property management income per share, SEK | 1.46 | 1.65 | 1.67 | 1.44 | 1.39 | 1.54 | 1.47 | 1.25 |
| Earnings per share after tax, SEK | 1.91 | 1.43 | 1.88 | 2.60 | 2.79 | 2.39 | 1.99 | 1.48 |
| Equity per share, SEK | 51.2 | 49.3 | 47.9 | 48.0 | 45.3 | 42.5 | 40.1 | 40.3 |
| Earnings per share, SEK | 55.8 | 52.0 | 46.6 | 44.0 | 47.1 | 50.8 | 47.1 | 46.9 |
1 Includes expenses relating to commitment fees and derivatives.
Diös' earnings performance in 2017 was strong. Our property management income increased by 53 per cent to SEK 822 million (539) and the surplus ratio increased to 64 per cent, which was above our target for the year. New leasing activity picked up and net leasing came in at SEK 55 million (26), which is a new record.
The occupancy rate was 91 per cent, and I am convinced that the figure will continue to improve. We currently have a clear focus on growth. We have a better property portfolio and an organisationthat has a clearer emphasis on the tenant and our business.
New needs and patterns of behaviour influence the development of a city. To achieve long-term success, we need to be attentive to what the market is demanding. At its heart, our urban development strategy is about creating growth. We create meeting places and increase urban density. We build new homes and commercial premises. And we develop and improve our properties in a smart way to meet changing requirements. Our premise is that we will become even more profitable if the city grows, if it is attractive and if our tenants are successful.
We have identified development rights for a gross area of 150,000 square metres with a total investment in new builds of around SEK 4,000 million. The projects will give us a new dimension and new opportunities. Our efforts to create new spaces in central areas will increase the attractiveness of our cities, increase demand for premises and drive rents. The first projects are expected to be launched in 2018, starting with our Riverside hotel project in central Sundsvall and a residential property in central Falun.
Our acquisition of the 32 properties on which we completed in early February has proved to be just as successful as we had expected. In addition to strengthening our offering to tenants, we have improved the efficiency of our administration and reduced total vacancies in our portfolio. During the year we concluded a number of exchange deals which show clearly that the city centres is where we should be. In December we also strengthened our position in central Skellefteå through the acquisition of two commercial properties.
In the fourth quarter we issued SEK 600 million in commercial paper under a recently established Swedish programme. The programme has broadened our financing base in a cost-effective way. Our interest ex-
pense was lower than in the previous year, despite a larger balance sheet, which shows that we are able to obtain a low financing rate and enjoy good relations with banks as well as the capital market.
I am proud that we are delivering such a strong result that the Board is able to propose increasing our dividend by 45 per cent. The proposed dividend is SEK 2.90 per share (2.00) to be distributed evenly in two separate payments of SEK 1.45 each. It evens out the cash flow over the year and reduces the volatility of the shares, as the amount that is set aside in each distribution is lower than in the case of a single dividend. The proposed payment is consistent with our dividend policy and once again represents one of the most attractive yields in the industry.
The level of activity in the Swedish economy and in our market is very high. The National Institute of Economic Research predicts that 2018 will be another year of strong growth in Sweden, which will benefit us as a property owner, leading to reduced vacancies and increased cash flows.
Thanks to our focus on urban development, and with the properties that we own today, we are ideally positioned to generate further profitable business in the form of acquisitions, lets and new build projects. We have a first-rate organisation that is already performing strongly, yet we also see many more opportunities. Having completed a successful 2017 and armed with a constant ambition to improve, we will continue to deliver increased cash flows and attractive returns for our shareholders also in 2018.
Property management income for the period, i.e. income excluding changes in value and tax, was SEK 822 million (539). For comparable properties our property management income increased by 19 per cent year on year.
Income and expenses for the period were affected by the acquisition of 32 properties in the first quarter. Completion took place on 1 February 2017 and the properties will be consolidated in our results as of that date.
The rental income for the reporting period was SEK 1,700 million (1 323), representing a 91 per cent (90) economic occupancy rate. For comparable properties rental income increased by 3.7 per cent year on year.
Other property management income totalled SEK 19 million (17) and consisted mainly of costs for work in leased premises that are passed on to tenants.
Total property costs were SEK 639 million (534). Of total property costs, SEK 9 million (10) refers to work in leased premises for which the costs are passed on to tenants.
The operating surplus was SEK 1 080 million (806), representing a surplus ratio of 64 per cent (61). Our improved surplus ratio is due mainly to improved occupancy. For comparable properties our operating surplus increased by 5.8 per cent compared with the previous year.
The central administration expense was SEK 73 million (63). Central administration includes a non-recurring item of SEK 4 million, which refers to restructuring costs incurred in connection with acquisitions.
Net financial items for the period were SEK -185 million (-204). The interest costs for the year, including costs for interest rate derivatives and loan commitments, represent borrowings at an average annual interest rate of 1.8 per cent (2.4). The average annual interest rate for interest-bearing liabilities based on the applicable terms and market interest rates at 31 September was 1.5 per cent (2.0).
The property market is marked by a continued high level of activity, strong demand and continued limited supply, which is pushing prices higher. Prices are increasing mainly for centrally located office properties in growth cities. The average valuation yield at the end of the period was 6.08 per cent (6.40), which at portfolio level is a decrease of 0.32 percentage points since year-end. The positive change in value of SEK 402 million (337) is primarily related to investments in the property portfolio and a one-off effect of a discount on deferred tax in connection with property transactions. The change in value represented 2.1 per cent (2.5) of market value. The market value was SEK 19,457 million (13,683) on 31 December.
During the period 15 properties were sold, resulting in a realised change in value of SEK 10 million. In the previous year 42 properties were sold, resulting in a realised change in value of SEK -10 million. 40 properties (5) were acquired during the year.
The portfolio of interest rate derivatives has been measured at fair value. If the contracted interest rate deviates from the market rate, a theoretical fair value gain or loss arises on the interest rate derivatives. The change in value is of an accounting nature and does not affect cash flow.
During the year unrealised changes in value on derivatives totalled SEK 27 million (91), which have been fully recognised in the income statement. The change in the market values of derivatives is primarily attributable to the time effect.
The profit before tax was SEK 1,261 million (957). The improvement in earnings is due primarily to a larger property portfolio.
The profit after tax was SEK 1,029 million (832) Current tax totalled SEK -43 million (11). This is mainly attributable to tax in subsidiaries which do not have the right to offset losses against Group profits. The positive tax effect in the previous year is attributable to a partial reversal of tax provisions related to a tax case. The deferred tax liability was SEK -189 million (-136).
Property management income for the fourth quarter, i.e. income excluding changes in value and tax, was SEK 197 million (132). The operating surplus was SEK 266 million (195), representing a surplus ratio of 61 per cent (59).
Net financial items for the fourth quarter were SEK -48 million (-45). The profit before tax was SEK 268 million (330), with changes in the value of properties having a positive impact of SEK 65 million (181) and changes in the value of interest rate derivatives adding SEK 6 million (17). Earnings after tax were SEK 256 million (266), of which SEK 4 million (-53) refers to deferred tax and SEK -16 million (-11) to current tax.
In the fourth quarter 2 properties (0) were sold, resulting in a net realised change in value of SEK -2 million (0). In the fourth quarter 2 properties (1) were acquired.
The nominal corporate tax rate in Sweden is 22 per cent. Due to the option of using tax depreciation allowances, recognising the full amount of expenses for certain types of conversion projects in the first year, and using tax losses, tax paid was low. Tax paid arises from the fact that some subsidiaries are not able to avail themselves of the tax benefits of group contributions.
The remaining tax losses are estimated at SEK 21 million (177). The Group also has untaxed reserves of SEK 123 million (116). The fair value of the properties exceeds their tax base by SEK 5,339 million (4,648). The tax on the net balance of these items at the full nominal tax rate of 22 per cent less the deferred tax attributable to asset purchases has been recognised as a deferred tax liability.
| SEKm | Basis for current tax |
Basis for deferred tax |
|---|---|---|
| Property management income | 822 | |
| Tax-deductible | ||
| depreciation and amortisation | -227 | 227 |
| conversion projects | -56 | 56 |
| Other tax adjustments | -140 | 51 |
| Taxable property management income | 399 | 334 |
| Income tax at 22% if tax losses are not used | -88 | |
| Sale of properties | 3 | -84 |
| Unrealised change in value, properties | 402 | |
| Issue costs | -51 | 51 |
| Taxable profit before tax losses | 351 | 703 |
| Tax losses, opening balance | -177 | 177 |
| Tax losses, closing balance | 21 | -21 |
| Taxable profit | 195 | 859 |
| Tax for the period as per income statement | -43 | -189 |
While the reporting of taxes complies with the applicable accounting rules it should be noted that the amount of tax paid over the period generally differs from the reported amount. In addition, tax regulations are complex and hard to interpret. The application of the regulations may also change over time. Diös has no ongoing tax disputes.
Our portfolio is well diversified, comprising residential, office, retail and industrial premises. A broad choice of large and small premises in central locations enables us to offer flexible solutions and build longterm relationships. At the end of the period the portfolio comprised 93 per cent (92) commercial properties and 7 per cent (8) residential properties based on rental value by type of premises.
Our investments in our existing portfolio comprise conversions and extensions as well as energy-saving measures. The investments must result in a higher occupancy rate, increased customer satisfaction, lower costs and a reduced impact on the environment. During the year SEK 505 million (420) was invested in 662 projects (331). At the end of the period 18 major1 development projects were ongoing, with a remaining investment volume of SEK 134 million and a total investment volume of SEK 208 million. During the period 97 new project investments were approved. The return on completed investments for 2017 was 9.0 per cent on the invested amount while the return on our ongoing projects at year-end was 6.8 per cent.
1 Initial investment volume > SEK 4 million.
Our existing and potential development rights cover a gross area of around 150,000 square metres, of which around 50 per cent refers to development rights for residential properties and 50 per cent refers to development rights for commercial properties. Among these, Diös has identified various types of projects with a total potential future investment volume of around SEK 4,000 million.
Diös made limited use of its own development rights during the year but previously announced projects such as the Falan 20 residential property in Falun and the Riverside hotel project in Sundsvall are expected to be initiated in 2018.
At each closing date all properties are measured at fair value. The aim is to determine the properties' individual values in a sale executed through an orderly transaction between market players. Any portfolio effects are thus not taken into account. Diös' property portfolio is divided into a main portfolio and a subsidiary portfolio. The main portfolio comprises around 75 per cent of the property value, or SEK 14,666 million, and 120 properties. The valuation method requires that an external valuation of the entire main portfolio be made each year. The external valuation is made by valuation consultants Savills, who assess 25 per cent of the main portfolio each quarter. All properties in the main portfolio are also physically inspected by Savills within a three-year period. In addition to the regular inspections, physical visits are also made after major changes. Properties in the secondary portfolio are valued with the help of Savills. All property valuations are based on a number of assumptions about the future and the market. Savills' calculations therefore have an uncertainty range of +/-7.5 per cent, which is also applied for the property portfolio as a whole. For Diös, this translates into a value range of SEK 17,998- 20,917 million. No changes in terms of valuation methodology or approach were made during the period. The valuations were made in accordance with IFRS 13 level 3.
Our strategy is to continually concentrate our portfolio to priority locations in our target cities.
In the fourth quarter Diös completed on the sale of the Krukan 16 and Krukan 18 properties and on the purchase of the Njord 28 and Dyckerten 3 properties in Umeå.
In the third quarter Diös completed on the sale of the Furan 1, Furan 9, Furan 10 and Svalan 6 properties in Söderhamn. We completed on the purchase of two properties in central Sundsvall and on the sale of three industrial properties in Birsta, Sundsvall in a deal with Norrlandspojkarna. We also completed on the purchase of a commercial property in central Umeå and on the sale of four industrial properties in Umeå in a deal with Dcap AB.
In the second quarter Diös completed on the sale of the Näringen 22:3 land property in Gävle to Gävle Local Authority.
In the first quarter we completed on the purchase of the Luleå Office Building and the 32 properties in Umeå, Luleå and Sundsvall that we acquired from Castellum.
The acquisitions increased the value of Diös' property portfolio by SEK 5,094 million (206). New builds, conversions and extensions added SEK 505 million (420) to the value of Diös' property portfolio for the period. We are continually adjusting our portfolio in order to create improvements and efficiencies for our tenants.
Unrealised changes in value for the period totalled SEK 402 million (337) and is primarily related to investments in the property portfolio and a one-off effect of a discount on deferred tax in connection with property transactions.
| 31 Dec 2017 | 31 Dec 2016 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Office | Retail Residential | Industrial/ warehouse |
Other | Office | Retail Residential | Industrial/ warehouse |
Other | |||
| Analysis period | 5 years | 5 years | 5 years | 5 years | 5 years | 5 years | 5 years | 5 years | 5 years | 5 years |
| Yield for assessing residual value1 , % |
7.0-5.7 | 6.8-6.0 | 5.3-4.7 | 8.1-7.0 | 7.0-6.0 | 7.3-6.2 | 7.2-6.1 | 5.5-4.8 | 8.2-7.3 | 7.1-6.6 |
| Cost of capital for discounting to present value, % | 8.1 | 8.2 | 7.4 | 9.8 | 8.6 | 8.5 | 8.4 | 7.4 | 9.9 | 9.0 |
| Long-term vacancy, % | 5.0 | 3.7 | 1.8 | 12.0 | 5.5 | 5.3 | 3.5 | 1.7 | 11.9 | 6.4 |
| Inflation, % | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 |
1 From lower to upper quartiles in the portfolio.
Net leasing for the year was SEK 55 million (26). Noteworthy lets during the three-month period included CGI Sverige AB in Norr 29:5 in Gävle, Harrys in Holmen 8 in Falun and Riksbyggen in Lagret 4 in Sundsvall. At 31 December the average contract term for commercial premises was 3.6 years (3.4).
Vacancies remained unchanged during the period, with economic vacancies standing at 9 per cent (10) and physical vacancies at 14 per cent (16) at 31 December. Economic vacancies are highest in office and retail premises while physical vacancies are highest in office and industrial premises. The economic vacancy rate for the period, excluding discounts, was 8 per cent (9).
| Heating1 kWh/sq.m |
88.1 | 87.4 |
|---|---|---|
| District cooling2 kWh/sq.m |
13.5 | 15.7 |
| Electricity3 kWh/sq.m |
58.4 | 60.7 |
| Carbon dioxide, total4 g CO2/kWh |
23.5 | 23.1 |
| m3 Water /sq.m. |
0.4 | 0.4 |
1 Heating has been adjusted to a normal year.
2 District cooling does not include self-produced cooling.
3 Electricity from energy use and tenants where electricity is included in the lease.
4 Carbon dioxide from electricity and heating.
All values have been provided by the suppliers. Floor area refers to tempered area. The comparative figures have been updated for the current portfolio and thus show changes for comparable properties.
Total use of heating and electricity in comparable properties was down by 1.1 per cent compared with the previous year. Our ambition for 2017 was to achieve a saving of 4 per cent. As we enter 2018 we are implementing a reorganisation to integrate energy-related tasks with our property management activities to a greater extent while engaging additional energy optimisers to achieve our targets. To reduce the
environmental impact from our energy use, we only buy origin-labelled electricity from renewable sources and take an active role in dialogues with district heating suppliers, and we can now see that 97 per cent of our district heating comes from non-fossil sources. During the period we installed our first solar cell facility, which will be taken into operation in early 2018.
| Concluded contracts | Rented area | Contracted rental income | Share, | ||
|---|---|---|---|---|---|
| Maturity year | no. | sq.m. | SEKm | % | |
| Leases for premises | 2018 | 912 | 196,677 | 231 | 13 |
| 2019 | 776 | 271,939 | 331 | 19 | |
| 2020 | 701 | 252,894 | 322 | 19 | |
| 2021 | 427 | 202,457 | 269 | 16 | |
| 2022+ | 255 | 302,518 | 391 | 23 | |
| Total, leases for premises | 3,071 | 1,226,485 | 1,544 | 90 | |
| Residential leases | 1,643 | 113,970 | 124 | 7 | |
| Other leases | 4,109 | - | 58 | 3 | |
| TOTAL | 8,823 | 1,340,455 | 1,726 | 100 |
| TENANT | No. of contracts | Annual contract value, SEK '000 |
Share of total annual contract value, % |
Average contract term, years |
|---|---|---|---|---|
| Swedish Transport Administration | 26 | 61,588 | 3.6 | 2.6 |
| Municipality of Östersund | 111 | 37,261 | 2.2 | 2,8 |
| Swedish Public Employment Service | 42 | 32,663 | 1.9 | 2.5 |
| Åhléns AB | 5 | 22,443 | 1.3 | 5.5 |
| Swedbank AB | 9 | 21,539 | 1.2 | 3.0 |
| Telia Sverige AB | 26 | 20,357 | 1.2 | 10.7 |
| Swedish Police Authority | 34 | 19,741 | 1.1 | 3.1 |
| Folksam ömsesidig sakförsäkring | 43 | 19,047 | 1.1 | 5.5 |
| Swedish Social Insurance Agency | 21 | 18,719 | 1.1 | 2,8 |
| Municipality of Falun | 6 | 17,725 | 1.0 | 2.5 |
| Total, largest tenants | 323 | 271,083 | 15.7 | 3.7 |
We are the market leader in our priority cities. Our portfolio is concentrated to central locations in growth cities, from Borlänge in the south to Luleå in the north. Our operations are divided into seven business areas, of which six are defined geographically. Our seventh business area, Retail, has no geographical boundary but consists of our shopping centre and retail properties. In 2018 our Retail business area will form part of our geographic business areas to ensure that we take a more integrated approach to urban development in our cities. The business area organisation consists of property management staff and letting agents and one business manager.
The Swedish economy remains strong and GDP is expected to grow by 3.0 per cent in 2018, according to the National Institute of Economic Research. Employment has grown rapidly over the past few years and there is still a strong need to recruit. Population growth was positive in all our locations in 2016, with a total increase of 7,000 people.
Northvolt has decided to establish its battery factory in Skellefteå. The investment is expected to create 2,000–2,500 new jobs and the factory is scheduled for completion in 2023. Building work is expected to begin in the middle of 2018 and production is expected to commence in 2020.
RETAIL
Retail, 16% Other business areas, 84%
| PROPERTY HOLDINGS | |
|---|---|
| No. of properties | 15 |
| Area, '000 sq.m | 167 |
| Property value, SEKm | 3,112 |
| Operating surplus, SEKm | 164 |
| Surplus ratio, % | 58 |
| contracts | contract value, SEK '000 |
Share of total contract value, %* |
Average contract term, years |
|---|---|---|---|
| 2 | 15,477 | 5.4 | 2.4 |
| 5 | 12,142 | 4.3 | 1.9 |
| 4 | 10,229 | 3.6 | 1.2 |
| 5 | 9,099 | 3.2 | 4.3 |
| 3 | 6,481 | 2.3 | 5.0 |
| 19 | 53,428 | 18.8 | 2.7 |
| No. of | Annual |
Total, largest tenants 26 75,328 35.2 4.7 *In relation to the annual contract value for each business area.
Gävleborg, 10% Other business areas, 90%
Share of total contract value, %*
Average contract term, years
TENANT
LARGEST TENANTS
PROPERTY HOLDINGS
| No. of properties | 44 |
|---|---|
| Area, '000 sq.m | 228 |
| Property value, SEKm | 1,846 |
| Operating surplus, SEKm | 118 |
| Surplus ratio, % | 66 |
No. of contracts
No. of properties 43 Area, '000 sq.m 225 Property value, SEKm 2,098 Operating surplus, SEKm 140 Surplus ratio, % 65
Swedish Transport Administration 3 40,204 18.8 2.5 Swedish Police Authority 8 10,042 4.7 1.6 Internationella Engelska Skolan AB 1 9,270 4.3 18.0 Pysslingen Förskolor och Skolor AB 1 8,419 3.9 6.6 County Administrative Board of Dalarna 13 7,393 3.5 2.0
Annual contract value, SEK '000
| LARGEST TENANTS TENANT |
No. of contracts |
Annual contract value, SEK '000 |
Share of total contract value, %* |
Average contract term, years |
|---|---|---|---|---|
| Gävleborg County Council | 7 | 9,439 | 5.5 | 2.9 |
| Swedish Transport Administration | 3 | 6,143 | 3.6 | 1.1 |
| Internationella Engelska Skolan AB | 3 | 5,777 | 3.4 | 5.7 |
| Swedish Public Employment Service | 6 | 5,259 | 3.0 | 2.7 |
| Åhléns | 1 | 4,363 | 2.5 | 4.0 |
| Total, largest tenants | 20 | 30,981 | 18.0 | 3.2 |
| No. of properties | 50 |
|---|---|
| Area, '000 sq.m | 192 |
| Property value, SEKm | 2,583 |
| Operating surplus, SEKm | 130 |
| Surplus ratio, % | 63 |
| LARGEST TENANTS | No. of | Annual contract value, SEK |
Share of total contract value, |
Average contract |
|---|---|---|---|---|
| TENANT | contracts | '000 | %* | term, years |
| Livförsäkringsbolaget Skandia | 3 | 14,123 | 6.5 | 5.2 |
| Sweco Sverige AB | 4 | 8,448 | 3.9 | 4.9 |
| Folksam ömsesidig sakförsäkring | 7 | 7,985 | 3.7 | 8.6 |
| Norrlidens Kunskapscentrum AB | 3 | 7,085 | 3.3 | 7.9 |
| Municipality of Sundsvall | 16 | 7,001 | 3.2 | 2.0 |
| Total, largest tenants | 33 | 44,642 | 20.6 | 5.7 |
*In relation to the annual contract value for each business area.
Jämtland, 15% Other business areas, 85%
RENTAL VALUE BY TYPE OF PREMISES
| No. of properties | 113 |
|---|---|
| Area, '000 sq.m | 289 |
| Property value, SEKm | 3,006 |
| Operating surplus, SEKm | 172 |
| Surplus ratio, % | 60 |
| LARGEST TENANTS TENANT |
No. of contracts |
Annual contract value, SEK '000 |
Share of total contract value, %* |
Average contract term, years |
|---|---|---|---|---|
| Municipality of Östersund | 109 | 37,261 | 13.1 | 2,8 |
| Region Jämtland Härjedalen | 21 | 13,264 | 4.7 | 3.0 |
| Swedbank AB | 4 | 9,280 | 3.3 | 4.6 |
| Swedish Public Employment Service | 3 | 5,886 | 2.1 | 2.9 |
| Deloitte | 1 | 3,888 | 1.3 | 2.0 |
| Total, largest tenants | 138 | 69,579 | 24.5 | 3.0 |
ÅRE ÖSTERSUND
Office, 64% Industrial/warehouse, 5% Retail, 13% Residential, 5% Other, 13%
| No. of properties | 49 |
|---|---|
| Area, '000 sq.m | 287 |
| Property value, SEKm | 4,042 |
| Operating surplus, SEKm | 206 |
| Surplus ratio, % | 65 |
| TENANT | No. of contracts |
Annual contract value, SEK '000 |
Share of total contract value, %* |
Average contract term, years |
|---|---|---|---|---|
| Skellefteå Municipality | 18 | 15,631 | 4.8 | 3.9 |
| Swedish Courts | 8 | 14,941 | 4.6 | 9.2 |
| County Administrative Board of Västerbotten | 3 | 10,715 | 3.3 | 3.8 |
| Swedish Tax Agency | 15 | 10,185 | 3.2 | 2.4 |
| Scandic Hotels AB | 1 | 9,934 | 3.1 | 12.7 |
| Total, largest tenants | 45 | 61,406 | 19.0 | 6.3 |
UMEÅ SKELLEFTEÅ
*In relation to the annual contract value for each business area.
Norrbotten, 14% Other business areas, 86%
Office, 71%
| No. of properties | 25 |
|---|---|
| Area, '000 sq.m | 165 |
| Property value, SEKm | 2,770 |
| Operating surplus, SEKm | 151 |
| Surplus ratio, % | 70 |
| LARGEST TENANTS TENANT |
No. of contracts |
Annual contract value, SEK '000 |
Share of total contract value, %* |
Average contract term, years |
|---|---|---|---|---|
| Telia Sverige AB | 8 | 15,169 | 6.9 | 13.1 |
| Swedish Transport Administration | 3 | 11,816 | 5.4 | 3.7 |
| Municipality of Luleå | 14 | 11,716 | 5.4 | 3.2 |
| Sweco Sverige AB | 4 | 8,406 | 3.8 | 5.2 |
| County Administrative Board of Norrbotten | 5 | 8,263 | 3.8 | 1.0 |
| Total, largest tenants | 34 | 55,370 | 25.3 | 6.0 |
DIÖS FASTIGHETER AB YEAR-END REPORT JANUARY–DECEMBER 2017 Anders Wesström, Technical Manager, and Diös tenant Amberline at the Falu kontorshotell business centre, Sofie Lofors-Läck, owner. 17
At 31 December 2017, 35 per cent (31) of Diös' total assets of SEK 19,708 million were financed through equity, 56 per cent (58) through debt and 9 per cent (11) through other capital. The equity/assets ratio was 34.9 per cent (31.0), which exceeds the target of 30 per cent. Interest-bearing liabilities comprise bank financing, covered bonds and commercial paper.
The Castellum property acquisition, for which the completion date was 1 February, was part-financed through a rights issue of 59,783,304 shares, which raised SEK 1,853 million in new equity for Diös. Equity at 31 December was SEK 6,887 million (4,313).
Interest-bearing liabilities in the Group were SEK 11,104 million (8,013). Of total interest-bearing liabilities, SEK 9,298 million (6,997) refers to bank financing, SEK 1,206 million (1 015) to covered bonds and SEK 600 million (0) to commercial paper. The bonds are issued through the covered MTN programme of a jointly controlled company, Svensk FastighetsFinansiering AB (SFF). In the fourth quarter Diös issued SEK 191 million in bonds. The bonds mature on 25 September 2019 and have a fixed coupon of 0.35 per cent. In the fourth quarter a commercial paper programme with a limit of SEK 2,000 million and a maturity of up to 364 days was set up. The programme has secured back-up facilities to manage the refinancing risk. The loan-to-value ratio in the Group was 57.1 per cent (58.6) at the end of the period. The average annual interest rate at 31 December, including costs related to
derivatives and taking account of loan commitments, was 1.5 per cent (2.0). The interest coverage ratio for the year was 5.3 times (3.6).
Of total interest-bearing liabilities in the Group, SEK 4,600 million (2,200) had been hedged through derivatives, including SEK 4,000 million through interest rate caps. At 31 December 2017 Diös' derivatives portfolio excluding interest rate caps had a market value of SEK -16 million (-43). Interest rate caps had a market value of SEK 1 million (0). The financial instruments limit the impact of changes in interest rates on our average borrowing cost. All financial instruments are measured at fair value and are classified in Level 2 in accordance with IFRS 13, which means that the measurement is based on observable market data (see Note 21 in the Annual Report 2016). Changes in value are recognised through profit or loss.
The average fixed-rate term and average loan maturity were 1.4 years (0.7) and 2.4 years (1.8), respectively. Taking account of the impact of the derivatives portfolio, the average fixed-rate term was 2.5 years (0.9). Of the Group's outstanding loans, SEK 7,965 million (1,926) is subject to fixed interest rates.
Consolidated cash and cash equivalents at the end of the year were SEK 32 million (0) and drawn overdraft facilities were SEK 0 million (15). The agreed limit on the overdraft facility was SEK 600 million (450).
| Fixed-rate term, years |
Maturity, years |
Average annual interest rate, % |
Market value, SEKm |
Change in average annual interest rate, % |
Change in average annual interest rate, SEKm |
Change in market value, SEKm |
|
|---|---|---|---|---|---|---|---|
| Loan portfolio excl. derivatives | 1.4 | 2.4 | 1.31 | 11,104 | 0.3 | +32 | |
| Derivatives portfolio | 2.6 | 0.2 | -16 | -0.1 | -6 | +7 | |
| Loan portfolio incl. derivatives | 2.5 | 2.4 | 1.5 | 0.2 | +26 | +7 |
1 The cost for undrawn credit facilities has been included.
| Interest rate and margin expiration | Loan maturity | |||||
|---|---|---|---|---|---|---|
| Maturity year | Loan amount, SEKm | Average annual interest rate1 , % |
Credit agreements, SEKm | Drawn, SEKm | ||
| 2018 | 3,386 | 0.8 | 2,066 | 2,066 | ||
| 2019 | 2,426 | 1.2 | 2,224 | 2,224 | ||
| 2020 | 5,292 | 1.4 | 5,292 | 5,292 | ||
| 2021 | - | - | 525 | 23 | ||
| 2022 | - | - | 1,750 | 801 | ||
| 2027 | - | - | 1,000 | 697 | ||
| Drawn credit facilities | 11,104 | 1.2 | 12,858 | 11,104 | ||
| Undrawn credit facilities2 | 1,754 | 0.1 | ||||
| Financial instruments | 4,600 | 0.2 | ||||
| TOTAL | 1.5 |
1 Average annual interest rate refers to the average interest rate based on interest rate terms and the outstanding liability at 31 December 2017.
2 The impact of costs related to undrawn credit facilities on the average annual interest rate is 0.05 percentage points.
Diös' share price at the end of the year was SEK 55.8 (47.1), which represents a market capitalisation of SEK 7,499 million (4,484), and the return for the past 12 months was 18.5 per cent (-2.0). If the distributed dividend of SEK 2.00 per share is included, the total return on the shares for the period was 23.9 per cent (2.8). The graph shows share prices for the past 12 months for both Diös and the indexes. The return on the OMX Stockholm 30 Index was 3.9 per cent (4.9) and the return on the OMX Stockholm Real Estate PI index 6.7 per cent (8.2).
On 31 December Diös Fastigheter AB had 14,513 shareholders (11,233). The proportion of foreign-owned shares was 21.5 per cent (19.4) of the total number of shares, which increased over the period to 134,512,438,(74,729,134) The single largest shareholder was AB Persson Invest, with 15.4 per cent (15.4) of the shares. The ten largest shareholders accounted for 57.4 per cent (57.1) of the total number of shares and votes.
The Annual General Meeting 2017 resolved to authorise the company to buy back ten per cent of the total number of outstanding shares of the company. No repurchases were made during the period.
No new changes of ownership were flagged during the period. A list of the ten largest owners of Diös Fastigheter AB according to Euroclear Sweden AB is shown below.
Diös Fastigheter AB is a publicly traded company listed on the NAS-DAQ OMX Nordic Exchange Stockholm, Mid Cap list. The ticker symbol is DIOS and the ISIN code SE0001634262.
Our goal is to generate a return on equity in excess of the risk-free rate1 plus 6 per cent. The target return for the past 12 months was 5.9 per cent (5.8). The annual return was 18.3 per cent (20.6).
Equity at the end of the year was SEK 6,887 million (4,313) and the long-term net asset value, EPRA NAV, was SEK 8,033 million (5,336). On a per share basis, EPRA NAV was SEK 59.7 (56.0), which means that the share price at 31 December represented 93 per cent (84) of the long-term net asset value. The net asset value per share for the period, expressed as EPRA NNNAV, was SEK 58.0 (53.7).
Earnings per share for the year were SEK 7.78 (8.66)2 while long-term earnings per share, expressed as EPRA EPS, were SEK 5.54 (5.14). EPRA EPS, which is designed to show an entity's long-term earnings per share, is calculated as property management income after deducting 22 per cent corporation tax attributable to property management income less minority share of earnings.
1 The risk-free rate is defined as the average yield on five-year government bonds. 2 Share related key ratios are effected by 2017 rights issue.
Diös Fastigheter OMX Stockholm 30 Index OMX Stockholm Real Estate PI SHARE PRICE (SEK) VOLUME ('000)
OF DIÖS FASTIGHETER AB AT 31 DECEMBER 2017
| SHAREHOLDER | No. of shares | Capital and votes, % |
||
|---|---|---|---|---|
| AB Persson Invest | 20,699,443 | 15.4 | ||
| Backahill Inter AB | 14,095,354 | 10.5 | ||
| Bengtssons Tidnings Aktiebolag | 13,574,748 | 10.1 | ||
| Pensionskassan SHB Försäkringsförening | 8,096,827 | 6.0 | ||
| Avanza Pension | 5,015,873 | 3.7 | ||
| Handelsbankens Fonder | 4,750,000 | 3.5 | ||
| SEB Fonder | 4,189,559 | 3.1 | ||
| Fourth Swedish National Pension Fund (AP4) | 2,514,599 | 1.9 | ||
| Transamerica Asset Management, Inc. | 2,242,274 | 1.7 | ||
| Staffan Rasjö | 2,000,000 | 1.5 | ||
| Total, largest shareholders | 77,178,677 | 57.4 | ||
| Other shareholders | 57,333,761 | 42.6 | ||
| TOTAL | 134,512,438 | 100.0 |
2 Source: Monitor of Modular Finance AB. Compiled and processed data from Euroclear, Morningstar, the Swedish Financial Supervisory Authority and other sources.
20 DIÖS FASTIGHETER AB YEAR-END REPORT JANUARY–DECEMBER 2017 Blomsterservice, a Diös tenant in the In: shopping centre, Jenny Söderberg, florist.
The number of employees at 31 December 2017 was 156 (148), of whom 61 were women (60). The majority of the Group's employees, 106 (97), work in property management at our locations, of whom 40 (39) are involved in the physical management of properties. The company's head office and central Group functions are located in Östersund. In late 2017 we recruited additional project and business developers to ensure that we are able to take an even more focused approach to big projects and major new retail and office developments in our market. We have also completed a major skills development initiative for our operations staff, all of whom have been trained and validated to the newly created role of building maintenance technician.
The activities of the parent company consist of central Group functions as well as the ownership and operation of the Group's subsidiaries. Sales totalled SEK 170 million (137) and the profit after tax was SEK 436 million (-311). Profit after tax includes dividends from Group companies in the amount of SEK 300 million (300) and received Group contributions of SEK 154 million (0). Net sales refer chiefly to services sold to the Group's subsidiaries. Cash and cash equivalents at 31 December 2017 were SEK 29 million (0) and drawn overdraft facilities were SEK 0 million (17). External interest-bearing liabilities, excluding overdraft facilities, totalled SEK 2,608 million (2,145). Outstanding commercial paper totalled SEK 600 million (0). The average annual interest rate based on the situation at 31 December 2017 was 1.2 per cent (1.2). The parent company prepares its financial reports in compliance with RFR 2 Financial Reporting for Legal Entities.
Diös Fastigheters' principal risks and uncertainties are described on pages 52–54 of the 2016 annual report. Apart from what is stated in the following, there have been no material changes to Diös' risks and uncertainties.
At its monetary policy meeting on 19 December the Riksbank decided to keep its repo rate unchanged at -0.5 per cent. Only in the second half of 2018 does the executive board deem that it will be appropriate to start raising interest rates at a modest pace. It has also been decided that, starting in January 2018, the Riksbank will be reinvesting the proceeds of maturing bonds in 2019 with the aim of stabilising inflation around 2 per cent.
According to the December 2017 edition of Swedish Economy published by the National Institute of Economic Research (KI), the Swedish economy is performing strongly. Both production and employment grew at a brisk pace in the autumn and there are strong indications that the economy will continue to perform well. Unemployment is forecast to continue to decline in 2018, bottoming out at just over 6 per cent in 2019. The decline in house prices over the last few months is a big source of uncertainty, however. If the decline continues and becomes more protracted this could have negative consequences for the whole Swedish economy.
Thanks to Sweden's strong public finances, healthy banks and growing GDP, the prospects for growth in our markets are deemed to be good. As our real estate operations continue to generate strong cash flows, we are seeing a stabilisation of the yield levels in the market valuation of our properties and our property values. In aggregate, these factors should strengthen property as an asset class.
There were no significant related party transactions in the period. Those related party transactions which did occur are deemed to have been concluded on market terms.
Costs for operations and maintenance are subject to seasonal variations. Cold weather and snow affect the costs for heating, snow clearance and roof snow removal. The costs are normally higher in the first and fourth quarters.
The Board of Directors proposes that the Annual General Meeting on 24 April 2018 approve a dividend of SEK 2.90 per share, to be distributed in two separate payments of SEK 1.45. The proposed record date for the first dividend payment is 26 April 2018 and the proposed record date for the second payment is 26 October. If the AGM approves the proposed dividend, payments will be made through Euroclear Sweden AB on Wednesday 2 May 2018 and Thursday 1 November 2018.
| INCOME STATEMENT | 2017 3 mths Oct-Dec |
2016 3 mths Oct-Dec |
2017 12 mths Jan-Dec |
2016 12 mths Jan-Dec |
|---|---|---|---|---|
| Rental income | 437 | 332 | 1,700 | 1,323 |
| Other property management income | 6 | 5 | 19 | 17 |
| Property costs | -177 | -142 | -639 | -534 |
| Operating surplus | 266 | 195 | 1,080 | 806 |
| Central administration | -21 | -18 | -73 | -63 |
| Net financial items | -48 | -45 | -185 | -204 |
| Property management income | 197 | 132 | 822 | 539 |
| Change in value, properties | 65 | 181 | 412 | 327 |
| Change in value, interest rate derivatives | 6 | 17 | 27 | 91 |
| Profit before tax | 268 | 330 | 1,261 | 957 |
| Current tax | -16 | -11 | -43 | 111 |
| Deferred tax | 4 | -53 | -189 | -136 |
| Profit after tax | 256 | 266 | 1,029 | 832 |
| Profit attributable to shareholders of the parent | 257 | 266 | 1,027 | 825 |
| Profit attributable to non-controlling interests | -1 | 0 | 2 | 7 |
| Total | 256 | 266 | 1,029 | 832 |
| STATEMENT OF COMPREHENSIVE INCOME | ||||
| Profit after tax | 256 | 266 | 1,029 | 832 |
| Comprehensive income for the period | 256 | 266 | 1,029 | 832 |
| Comprehensive income attributable to shareholders of the parent | 257 | 266 | 1,027 | 825 |
| Comprehensive income attributable to non-controlling interests | -1 | 0 | 2 | 7 |
| Total | 256 | 266 | 1,029 | 832 |
| Earnings per share, SEK | 1.91 | 2.79 | 7.78 | 8.66 |
| Number of shares at end of period ('000) | 134,512 | 95,290 | 134,512 | 95,290 |
| Average number of shares ('000) | 134,512 | 95,290 | 132,041 | 95,290 |
| Number of treasury shares at end of period | 0 | 0 | 0 | 0 |
| Average number of treasury shares | 0 | 0 | 0 | 0 |
1 Current tax for 2016 includes a reversal of SEK 37 million related to a provision that was recognised in 2015.
| ASSETS | 2017 31 Dec |
2016 31 Dec |
|---|---|---|
| Investment properties | 19,457 | 13,683 |
| Other non-current assets | 46 | 41 |
| Current receivables | 173 | 196 |
| Cash and cash equivalents | 32 | - |
| TOTAL ASSETS | 19,708 | 13,920 |
| EQUITY AND LIABILITIES | ||
| Equity | 6,887 | 4,313 |
| Deferred tax liability | 1,197 | 1,009 |
| Provisions | 9 | 9 |
| Interest-bearing liabilities | 11,104 | 8,013 |
| Overdraft facilities | - | 15 |
| Current liabilities | 511 | 561 |
| TOTAL LIABILITIES AND EQUITY | 19,708 | 13,920 |
| Equity | Attributable to shareholders of the parent |
Attributable to minority interests |
|
|---|---|---|---|
| Equity, 31 Dec 2015 | 3,694 | 3,658 | 36 |
| Profit for the period after tax | 832 | 825 | 7 |
| Comprehensive income for the period | 832 | 825 | 7 |
| Cash dividend | -213 | -213 | - |
| Equity, 31 Dec 2016 | 4,313 | 4,270 | 43 |
| Profit for the period after tax | 1,029 | 1,027 | 2 |
| Comprehensive income for the period | 1,029 | 1,027 | 2 |
| Issue of new shares | 1,853 | 1,853 | - |
| Issue costs | -51 | -51 | - |
| Tax effect of issue costs | 11 | 11 | - |
| Dividend | -269 | -269 | - |
| Equity, 31 Dec 2017 | 6,887 | 6,841 | 45 |
| OPERATING ACTIVITIES | 2017 3 mths Oct-Dec |
2016 3 mths Oct-Dec |
2017 12 mths Jan-Dec |
2016 12 mths Jan-Dec |
|---|---|---|---|---|
| Operating surplus | 266 | 195 | 1,080 | 806 |
| Central administration | -21 | -18 | -73 | -63 |
| Reversal of depreciation, amortisation and impairment | 0 | 16 | 2 | 5 |
| Interest received | 2 | 0 | 4 | 1 |
| Interest paid | -65 | -23 | -219 | -184 |
| Tax paid | -16 | -12 | -43 | -26 |
| Operating cash flow before changes in working capital | 166 | 158 | 751 | 539 |
| Changes in working capital | ||||
| Decrease (+)/increase (-) in receivables | 93 | -10 | 82 | -92 |
| Decrease (-)/increase (+) in current liabilities | -53 | 41 | -142 | 35 |
| Total changes in working capital | 40 | 31 | -60 | -57 |
| Operating cash flow | 206 | 189 | 691 | 482 |
| INVESTING ACTIVITIES | ||||
| Investments in new builds, conversions and extensions | -117 | -125 | -502 | -452 |
| Acquisition of properties | -90 | -36 | -2,581 | -136 |
| Sale of properties | 88 | 4 | 240 | 641 |
| Other property, plant and equipment | - | - | - | - |
| Other financial assets | - | 4 | - | -26 |
| Investing cash flow | -119 | -153 | -2,843 | 27 |
| FINANCING ACTIVITIES | ||||
| Dividends paid | - | - | -269 | -213 |
| Issue of new shares | - | - | 1,802 | - |
| New borrowing, interest-bearing liabilities | 34 | 107 | 3,168 | 370 |
| Repayment and redemption of interest-bearing liabilities | -108 | -40 | -2,502 | -454 |
| Change in overdraft facility | - | -103 | -15 | -212 |
| Financing cash flow | -74 | -36 | 2,184 | -509 |
| Cash flow for the period | 13 | 0 | 32 | 0 |
| Cash and cash equivalents at beginning of period | 19 | 0 | 0 | 0 |
| Cash and cash equivalents at end of period | 32 | 0 | 32 | 0 |
Diös complies with EU-adopted IFRS standards and the interpretations of these (IFRIC). This interim report has been prepared in accordance with IAS 34 Interim Financial Reporting and the Swedish Annual Accounts Act. The report for the parent company is prepared in accordance with RFR 2 Financial Reporting for Legal Entities and the Swedish Annual Accounts Act. Disclosures under IAS 34 are provided elsewhere in the interim report than in a note. The accounting policies applied in preparing the interim report are consistent with the accounting policies applied in preparing the consolidated financial statements and annual accounts for 2017, Note 1.
New or amended IFRS standards and new interpretations which have not yet become effective:
IFRS 9 replaces IAS 39 Financial Instruments: Recognition and Measurement, and contains rules for the recognition, classification, measurement, impairment and derecognition of financial instruments as well as general rules for hedge accounting. It is mandatory for periods beginning on or after 1 January 2018.
The standard introduces new principles for the classification of financial assets, hedge accounting and provisions for credit losses. The Group conducted a project during the year to identify differences between the previously applied principles for the recognition of financial instruments and the IFRS 9 requirements. The new principles for classification of financial assets are based on an analysis of the business model on the basis of which the asset is managed and the asset's cash flow characteristics. The areas where Diös believes the standard could have an impact are impairment testing of trade receivables and the assessment of future bad debts. The analysis and Diös' application of the new model for impairment testing show that the transition will have no material impact on the reported values.
Senior management's general assessment is that IFRS 9 will have an immaterial impact on the Group's financial reporting. The Group will not be restating comparative figures.
IFRS 15 will replace IAS 18 Revenue, IAS 11 Construction Contracts and the related interpretations. IFRS 15 is mandatory for financial years beginning on or after 1 January 2018. The new standard introduces a new model for revenue recognition (five-stage model) that is based on when control of a good or service is transferred to the customer. The basic principle is that a company should recognise revenue so as to represent the transfer of promised goods and services to the customer in an amount which reflects the compensation which the company is expected to be entitled to in exchange for these goods or services.
Diös conducted a project during the year to identify differences between the previously applied principles for revenue recognition and the IFRS 15 requirements. Diös' revenue essentially comprises rental income from properties. Diös has made an analysis to determine whether we act as principal or agent in respect of service income. Our assessment is that Diös, in the capacity of property owner, essentially acts as principal. IFRS 15 will therefore not have any material impact on Diös' financial statements based on this perspective, as there is no change in net sales. Sales income from properties is also included. Diös recognises sales income from property transactions on the completion date under the current rules, and IFRS 15 is therefore not deemed to have any impact on these transactions.
The Group will apply IFRS 15 from 1 January 2018. The applied transition method is the retroactive method. Senior management's general assessment is that IFRS 15 will have an immaterial impact on the Group's financial reporting and financial statements. The comparative figures will therefore not be restated.
1 The Annual Report 2016 is available at www.dios.se
Diös owned 339 properties in 10 locations, from Borlänge in the south to Luleå in the north. The total leasable area was 1,552,524 square metres. The economic occupancy rate based on the number of concluded leases at 31 December was 91 per cent. During the year Diös invested SEK 505 million in new builds, extensions and conversions. In terms of value, Västerbotten, Retail and Jämtland accounted for the largest share of the portfolio. The total market value of the properties was SEK 19,457 million.
| By business area | Retail | Dalarna | Gävleborg | Västernorrland | Jämtland Västerbotten | Norrbotten | Diös Group | |
|---|---|---|---|---|---|---|---|---|
| Rental income | 282 | 215 | 177 | 208 | 284 | 317 | 217 | 1,700 |
| Other revenue | 1 | 5 | 4 | 1 | 2 | 1 | 4 | 19 |
| Repair and maintenance | -9 | -12 | -9 | -9 | -15 | -16 | -8 | -77 |
| Tariff-based costs | -32 | -30 | -21 | -27 | -45 | -40 | -21 | -216 |
| Property tax | -19 | -8 | -9 | -10 | -13 | -16 | -12 | -86 |
| Other property costs | -48 | -20 | -16 | -20 | -28 | -28 | -20 | -180 |
| Property management | -13 | -10 | -8 | -14 | -13 | -12 | -10 | -80 |
| Operating surplus | 164 | 140 | 118 | 130 | 172 | 206 | 151 | 1,080 |
| Undistributed items | ||||||||
| Central administration | - | - | - | - | - | - | - | -73 |
| Net financial items | - | - | - | - | - | - | - | -185 |
| Property management income | - | - | - | - | - | - | - | 822 |
| Changes in value | ||||||||
| Property, realised | - | - | -1 | 1 | - | 10 | - | 10 |
| Property, unrealised | -64 | 27 | 86 | 100 | 139 | 71 | 43 | 402 |
| Interest rate derivatives | - | - | - | - | - | - | - | 27 |
| Profit before tax | - | - | - | - | - | - | - | 1,261 |
| Current tax | - | - | - | - | - | - | - | -43 |
| Deferred tax | - | - | - | - | - | - | - | -189 |
| Non-controlling interests | - | - | - | - | - | - | - | -2 |
| Profit/loss for the year attributable to parent company shareholders |
- | - | - | - | - | - | - | 1,027 |
| Leasable area, sq.m | 166,759 | 224,594 | 228,309 | 192,079 | 289,336 | 286,657 | 164,790 | 1,552,524 |
| Rental value | 314 | 237 | 199 | 238 | 313 | 345 | 228 | 1,875 |
| Economic occupancy rate, % | 90 | 91 | 89 | 87 | 91 | 92 | 95 | 91 |
| Surplus ratio, % | 58 | 65 | 66 | 63 | 60 | 65 | 70 | 64 |
| Change in property portfolio | ||||||||
| Property portfolio, 1 January 2017 | 2,043 | 2,003 | 1,756 | 1,397 | 2,776 | 2,219 | 1,489 | 13,683 |
| Acquisitions | 1,066 | 1 | - | 1,047 | - | 1,803 | 1,177 | 5,094 |
| Investments in new builds, extensions and conversions | 86 | 66 | 41 | 71 | 92 | 89 | 60 | 505 |
| Sales | -19 | - | -36 | -32 | - | -140 | - | -227 |
| Unrealised changes in value | -64 | 27 | 86 | 100 | 139 | 71 | 43 | 402 |
| Property portfolio, 31 December 2017 | 3,112 | 2,097 | 1,847 | 2,583 | 3,007 | 4,042 | 2,769 | 19,457 |
Columns/rows may not add up due to rounding.
Diös owned 314 properties in ten locations, from Borlänge in the south to Luleå in the north. The total leasable area was 1,353,525 square metres. The economic occupancy rate based on the number of concluded leases at 31 December was 90 per cent. During the year Diös invested SEK 420 million in new builds, extensions and conversions. In terms of value, Jämtland Västerbotten and Retail accounted for the largest share of the portfolio. The total market value of the properties was SEK 13,683 million.
| By business area | Retail | Dalarna | Gävleborg | Västernorrland | Jämtland Västerbotten | Norrbotten | Diös Group | |
|---|---|---|---|---|---|---|---|---|
| Rental income | 201 | 207 | 169 | 137 | 263 | 215 | 131 | 1,323 |
| Other revenue | 2 | 5 | 2 | 2 | 2 | 1 | 3 | 17 |
| Repair and maintenance | -6 | -11 | -10 | -9 | -16 | -13 | -7 | -71 |
| Tariff-based costs | -25 | -30 | -21 | -20 | -45 | -31 | -13 | -185 |
| Property tax | -14 | -8 | -9 | -6 | -12 | -11 | -6 | -67 |
| Other property costs | -34 | -22 | -16 | -17 | -28 | -20 | -12 | -149 |
| Property management | -10 | -8 | -7 | -8 | -13 | -10 | -8 | -64 |
| Operating surplus | 115 | 133 | 109 | 80 | 151 | 131 | 89 | 806 |
| Undistributed items | ||||||||
| Central administration | - | - | - | - | - | - | - | -63 |
| Net financial items | - | - | - | - | - | - | - | -204 |
| Property management income | - | - | - | - | - | - | - | 539 |
| Changes in value | ||||||||
| Property, realised | - | - | - | -3 | -3 | -4 | - | -10 |
| Property, unrealised | -71 | 1 | 54 | 70 | 85 | 71 | 127 | 337 |
| Interest rate derivatives | - | - | - | - | - | - | - | 91 |
| Profit before tax | - | - | - | - | - | - | - | 957 |
| Current tax | - | - | - | - | - | - | - | 11 |
| Deferred tax | - | - | - | - | - | - | - | -136 |
| Non-controlling interests | - | - | - | - | - | - | - | -7 |
| Profit/loss for the year attributable to parent company shareholders |
- | - | - | - | - | - | - | 825 |
| Leasable area, sq.m | 123,260 | 224,594 | 235,862 | 143,994 | 289,336 | 226,119 | 110,360 | 1,353,525 |
| Rental value | 223 | 230 | 193 | 162 | 295 | 235 | 140 | 1,478 |
| Economic occupancy rate, % | 90 | 90 | 88 | 85 | 89 | 91 | 94 | 90 |
| Surplus ratio, % | 57 | 64 | 64 | 58 | 58 | 61 | 67 | 61 |
| Change in property portfolio | ||||||||
| Property portfolio, 1 January 2016 | 2,071 | 1,938 | 1,663 | 1,632 | 2,712 | 2,046 | 1,319 | 13,381 |
| Acquisitions | - | - | - | - | 138 | 68 | - | 206 |
| Investments in new builds, extensions and conversions | 43 | 64 | 39 | 36 | 97 | 98 | 43 | 420 |
| Sales | - | - | - | -341 | -256 | -64 | - | -661 |
| Unrealised changes in value | -71 | 1 | 54 | 70 | 85 | 71 | 127 | 337 |
| Property portfolio, 31 December 2016 | 2,043 | 2,003 | 1,756 | 1,397 | 2,776 | 2,219 | 1,489 | 13,683 |
Columns/rows may not add up due to rounding.
The company presents certain financial measures in the interim report that have not been defined in accordance with IFRS. The company considers that these measures provide valuable additional information for investors, analysts and the company's management, as they enable the evaluation of relevant trends and the company's performance. As not all companies calculate
measures used by other companies. These financial measures should therefore not be viewed as substitutes for IFRS-defined measures. The following table presents non-IFRS measures unless otherwise stated. Definitions of these measures are found on page 34.
Figures refer to SEK million unless otherwise indicated.
| financial measures in the same way, these are not always comparable with the | 2017 3 mths Oct-Dec |
2016 3 mths Oct-Dec |
2017 12 mths Jan-Dec |
2016 12 mths Jan-Dec |
|---|---|---|---|---|
| Number of shares at end of period (balance sheet-related key ratios)1 | 134,512 | 95,290 | 134,512 | 95,290 |
| Average number of shares (income statement-related key ratios)1 | 134,512 | 95,290 | 132,041 | 95,290 |
1 Historical data for the number of shares has been restated to take account of the effect of bonus issues (i.e. the value of the subscription rights) in issues of new shares and has been used in all KPI calculations for SEK per share. The conversion factor is 1.28.
There is no dilutive effect, as no potential shares (such as convertibles) exist.
The company governs its operations based partly on the objective of generating capital growth by increasing the surplus ratio and thereby the cash flow from operating activities, i.e. increased income from property management. The target for the year is a surplus ratio in excess of 63 per cent. The income from property management is also the basis for what is distributed annually to the shareholders – around 50 per cent of the profit for the year after tax, excluding unrealised changes in value and deferred tax. Diös also reports the alternative performance indicators property management income, EPRA earnings and surplus ratio, as these are deemed to be relevant for investors and analysts, and provide additional information on the company's operating results. The indicators provide a picture which excludes factors that are partly beyond the control of the company, such as changes in the value of properties and derivatives.
| Property management income | 2017 3 mths Oct-Dec |
2016 3 mths Oct-Dec |
2017 12 mths Jan-Dec |
2016 12 mths Jan-Dec |
|---|---|---|---|---|
| Profit before tax | 268 | 330 | 1,261 | 957 |
| Reversal | ||||
| Change in value, properties | -65 | -181 | -412 | -327 |
| Change in value, derivatives | -6 | -17 | -27 | -91 |
| Property management income | 197 | 132 | 822 | 539 |
| EPRA earnings (property management income after tax) | ||||
| Property management income | 197 | 132 | 822 | 539 |
| Reversal, current tax property management income | -11 | -11 | -88 | -42 |
| Minority share of earnings | 1 | 0 | -2 | -7 |
| EPRA earnings / EPRA EPS | 187 | 121 | 732 | 490 |
| EPRA earnings / EPRA EPS per share | 1.39 | 1.27 | 5.54 | 5.14 |
| Surplus ratio | ||||
| Operating surplus as per income statement | 266 | 195 | 1,080 | 806 |
| Rental income as per income statement | 437 | 332 | 1,700 | 1,323 |
| Surplus ratio, % | 61 | 59 | 64 | 61 |
Net asset value is the total capital which the company manages on behalf of its owners. Based on this capital, Diös aims to generate returns and growth while maintaining a low risk. Net asset value can also be calculated on a long-term and short-term basis. Long-term NAV is based on the balance sheet after adjusting for items which involve no near-term outgoing payments, which in Diös' case refers, for example, to the fair value of financial instruments (derivatives) and deferred tax on temporary differences. The current net asset value consists of equity according to the balance sheet after adjusting for the market value of the deferred tax liability. EPRA NAV and EPRA NNNAV are designed to show the size of the company's equity in case of a liquidation in the short and long term. These performance indicators can be compared with the company's share price to obtain a picture of how the shares are valued in relation to equity.
| Net asset value | 2017 12 mths Jan-Dec |
2016 12 mths Jan-Dec |
|---|---|---|
| Equity as per balance sheet | 6,887 | 4,313 |
| Minority share of equity | -45 | -43 |
| Reversal as per balance sheet | ||
| Fair value of financial instruments | 16 | 43 |
| Deferred tax on temporary differences | 1,175 | 1,023 |
| EPRA NAV (long-term net asset value) | 8,033 | 5,336 |
| EPRA NAV (long-term net asset value) per share, SEK | 59.7 | 56.0 |
| Deductions | ||
|---|---|---|
| Fair value of financial instruments | -16 | -43 |
| Estimated actual deferred tax on temporary differences, approx. 4%1 | -209 | -180 |
| EPRA NNNAV (short-term net asset value) | 7,808 | 5,113 |
| EPRA NNNAV (short-term net asset value) per share, SEK | 58.0 | 53.7 |
1 Estimated actual deferred tax has been calculated at approx. 4 per cent based on a discount rate of 3 per cent. The calculation is based on the assumption that the property portfolio will be realised over a period of 50 years, with 10 per cent of the portfolio being sold directly subject to a nominal tax rate of 22 per cent, and the remaining 90 per cent being sold indirectly through companies subject to a nominal tax rate of 6 per cent. It is expected that it will be possible to use the tax losses in the coming year.
The company's strategy is to own, develop and manage properties in a value-creating sustainable manner that promotes development while maintaining a stable financial risk. This is expressed in the ambition to ensure that the loan-to-value ratio does not exceed 60 per cent over extended periods and to maintain an equity/assets ratio in excess of 30 per cent. The loan-to-value ratio and equity ratio show the company's financial stability while the interest coverage ratio shows the company's ability to pay interest. These key ratios are deemed to be relevant for investors and analysts from a financial risk perspective. They also constitute covenants from the company's lenders and the Board has defined targets for these key ratios, which are used to govern the company's activities.
| Loan-to-value ratio | 2017 3 mths Oct-Dec |
2016 3 mths Oct-Dec |
2017 12 mths Jan-Dec |
2016 12 mths Jan-Dec |
|---|---|---|---|---|
| Interest-bearing liabilities | 11,104 | 8,013 | ||
| Investment properties | 19,457 | 13,683 | ||
| Loan-to-value ratio, % | 57.1 | 58.6 | ||
| Equity ratio | ||||
| Equity | 6,887 | 4,313 | ||
| Total assets | 19,708 | 13,920 | ||
| Equity ratio, % | 34.9 | 31.0 | ||
| Interest coverage ratio | ||||
| Property management income | 197 | 132 | 822 | 539 |
| Reversal | ||||
| Financial costs | 52 | 45 | 191 | 204 |
| Total | 249 | 177 | 1,013 | 743 |
| Financial costs | 52 | 45 | 191 | 206 |
| Interest coverage ratio, times | 4.8 | 3.9 | 5.3 | 3.6 |
Other key ratios refer to a number of measures of return which the company uses to describe various aspects of the statement of financial position and to give investors and analysts further information about the operations. The company reports return on equity, equity per share and cash flow per share, as these performance indicators show the company's results and profitability, equity on a per share basis, and the company's ability to fulfil its obligations and pay dividends to the shareholders. These alternative performance indicators supplement the picture given of Diös' financial performance and enable investors and analysts to gain a better understanding of the company's return and results. Yield is a measure of the results generated by the properties in relation to their market value. It shows the profitability of the properties and is considered to provide supplementary information for investors and analysts concerning the risk in the portfolio. The debt/equity ratio is presented in order to supplement the picture of Diös' financial situation. It shows the ratio of interest-bearing liabilities to equity. The measure is considered to enhance investors' and analysts' ability to assess the company's financial stability.
| 2017 3 mths Oct-Dec |
2016 3 mths Oct-Dec |
2017 12 mths Jan-Dec |
2016 12 mths Jan-Dec |
|
|---|---|---|---|---|
| Return on equity, % | 3.8 | 6.4 | 18.3 | 20.6 |
| Equity per share, SEK | 51.2 | 45.3 | 51.2 | 45.3 |
| Rental income, SEKm | 437 | 332 | 1,700 | 1,323 |
| Cash flow per share, SEK | ||||
| Profit before tax | 268 | 330 | 1,261 | 957 |
| Reversal, unrealised change in value | ||||
| Properties | -67 | -181 | -402 | -337 |
| Derivatives | -6 | -17 | -27 | -91 |
| Depreciation and amortisation | 1 | 1 | 2 | 2 |
| Current tax | -16 | -11 | -43 | -26 |
| Total | 180 | 122 | 791 | 504 |
| Average number of shares ('000) | 134,512 | 95,290 | 132,041 | 95,290 |
| Cash flow per share, SEK | 1.34 | 1.28 | 6.00 | 5.29 |
| Earnings per share, SEK | 1.91 | 2.79 | 7.78 | 8.66 |
| Debt/equity ratio, times | 1.6 | 1.9 |
Diös also reports data for economic occupancy, rental value and net leasing, as these performance indicators provide a more in-depth picture of the company's financial performance with regard to revenues in the properties and thus also in the company. These performance indicators are widely used in the industry, and enable investors and analysts to make comparisons between different property companies.
| 2017 3 mths Oct-Dec |
2016 3 mths Oct-Dec |
2017 12 mths Jan-Dec |
2016 12 mths Jan-Dec |
|
|---|---|---|---|---|
| Economic occupancy rate, % | 91 | 90 | 91 | 90 |
| No. of properties at end of period | 339 | 314 | ||
| Leasable area at end of period, sq.m | 1,552,524 | 1,353,525 | ||
| EPRA vacancy rate | ||||
| Estimated market rent for vacant space | 153 | 137 | ||
| Annualised rental value for the whole portfolio | 1,875 | 1,478 | ||
| EPRA vacancy rate, % | 8.2 | 9.3 |
| OPERATIONAL TARGETS | Target 2017 | Outcome 2017 | Target 2018 |
|---|---|---|---|
| Economic occupancy rate, % | 92 | 91 | 92 |
| Surplus ratio, % | 63 | 64 | 64 |
| Energy use, % | -4 | -1 | -3 |
| Carbon dioxide emissions,% | -2 | ||
| Employee satisfaction index | 76 | 73 | 76 |
| Customer satisfaction index | 70 | 65 | 70 |
| FINANCIAL TARGETS | Target 2017 | Outcome 2017 | Target 2018 |
|---|---|---|---|
| Return on equity, % | 5.91 | 18.3 | >12 |
| Distribution of profit for the year2 , % |
~50 | 49,53 | ~50 |
| Loan-to-value ratio, % | < 60 | 57.1 | < 60 |
| Equity ratio, % | > 30 | 34.9 | > 30 |
1 Risk-free rate as represented by an average five-year government bond +6%.
2 Profit after tax, excluding unrealised changes in value and deferred tax.
3 The Board's proposal, to be distributed in two separate payments.
| Date | Event | Increase in number of shares |
Increase in share capital, SEK |
Total number of shares |
Total share capital, SEK |
Face value, SEK |
|---|---|---|---|---|---|---|
| 1 Jan 2005 | At the start of the period | - | - | 10,000 | 100,000 | 10.00 |
| 21 Jun 2005 | Share split | 990,000 | - | 1,000,000 | 100,000 | 0.10 |
| 21 Jun 2005 | Issue of new shares | 1,489,903 | 148,990 | 2,489,903 | 248,990 | 0.10 |
| 14 Sep 2005 | Non-cash issue | 1,503,760 | 150,376 | 3,993,663 | 399,366 | 0.10 |
| 2 Jan 2006 | Bonus issue | - | 39,537,264 | 3,993,663 | 39,936,630 | 10.00 |
| 2 Jan 2006 | Share split | 15,974,652 | - | 19,968,315 | 39,936,630 | 2.00 |
| 18 May 2006 | Issue of new shares | 8,333,400 | 16,666,800 | 28,301,715 | 56,603,430 | 2.00 |
| 11 Jul 2006 | Non-cash issue | 5,000,000 | 10,000,000 | 33,301,715 | 66,603,430 | 2.00 |
| 19 Apr 2007 | Non-cash issue | 666,250 | 1,332,500 | 33,967,965 | 67,935,930 | 2.00 |
| 29 Oct 2010 | Non-cash issue | 99,729 | 199,458 | 34,067,694 | 68,135,388 | 2.00 |
| 14 Dec 2010 | Issue of new shares | 3,285,466 | 6,570,332 | 37,353,160 | 74,705,720 | 2.00 |
| 17 Dec 2010 | Issue of new shares | 11,407 | 22,814 | 37,364,567 | 74,728,534 | 2.00 |
| 5 Dec 2011 | Issue of new shares | 22,854,136 | 45,708,272 | 60,218,703 | 120,436,806 | 2.00 |
| 14 Dec 2011 | Issue of new shares | 14,510,431 | 29,020,862 | 74,729,134 | 149,457,668 | 2.00 |
| 27 Jan 2017 | Issue of new shares | 59,629,748 | 119,259,496 | 134,358,882 | 268,717,164 | 2.00 |
| 31 Jan 2017 | Issue of new shares | 153,556 | 307,112 | 134,512,438 | 269,024,276 | 2.00 |
DIÖS FASTIGHETER AB YEAR-END REPORT JANUARY–DECEMBER 2017 Stefan Jönsson, Technical Manager, Östersund. 31
| INCOME STATEMENT | 2017 12 mths Jan-Dec |
2016 12 mths Jan-Dec |
|---|---|---|
| Net sales | 170 | 137 |
| Gross profit | 170 | 137 |
| Central administration | -214 | -178 |
| Operating profit | -44 | -41 |
| Income from interests in Group companies | 454 | 300 |
| Financial income | 218 | 236 |
| Financial costs | -192 | -184 |
| Profit after financial items | 436 | 311 |
| Current tax | - | - |
| Profit after tax | 436 | 311 |
| STATEMENT OF COMPREHENSIVE INCOME | ||
| Profit after tax | 436 | 311 |
| Comprehensive income for the year | 436 | 311 |
| Condensed parent company balance sheet, SEKm ASSETS |
2017 31 Dec |
2016 31 Dec |
|---|---|---|
| Investments in Group companies | 2,124 | 270 |
| Receivables from Group companies | 11,439 | 8,719 |
| Other assets | 26 | 28 |
| Cash and cash equivalents | 29 | - |
| TOTAL ASSETS | 13,618 | 9,017 |
| EQUITY AND LIABILITIES | ||
| Equity | 3,095 | 1,127 |
| Interest-bearing liabilities | 3,208 | 2,145 |
| Liabilities to Group companies | 7,277 | 5,692 |
| Overdraft facilities | - | 17 |
| Other liabilities | 38 | 36 |
| TOTAL EQUITY AND LIABILITIES | 13,618 | 9,017 |
| Annual Report 20171 | Week 14, 2018 |
|---|---|
| Annual General Meeting 2018, Östersund | 24 April 2018 |
| Q1 Interim Report January-March 2018 | 24 April 2018 |
| Q2 Interim Report January-June 2018 | 6 July 2018 |
| Q3 Interim Report January-September 2018 | 25 October 2018 |
1 The Annual Report 2017 will be available at www.dios.se. In the beginning of April the Annual Report will be sent to those Swedish share holders that have requested a printed version af the report.
In preparation for the Annual General Meeting of Diös Fastigheter AB (publ) on 24 April 2018, the Nominating Committee has presented its proposal for Chairman and other Directors. The Nominating Committee proposes that the Board consist of five Directors, that Anders Bengtsson, Ragnhild Backman, Anders Nelson and Bob Persson be re-elected to the Board, and that Eva Nygren be elected as a new Director in place of Maud Olofsson, who has declined re-election.
The Board of Directors and Chief Executive Officer declare that the year-end report gives a true and fair view of the company's and Group's operations, financial position and income, and describes the principal risks and uncertainties faced by the company and the companies in the Group. This financial statement has not been subject to review by the Company's auditor.
Financial reports can be viewed in full on Diös' website, www.dios.se
Östersund, 16 February 2018
Bob Persson Chairman
Ragnhild Backman Board member
Anders Bengtsson Board member
Maud Olofsson Board member
Anders Nelson Board member
Tomas Mellberg Board member Employee representative
Knut Rost Chief Executive Officer
Actual number of shares outstanding at the end of the period.
Profit for the period in relation to average equity. Average equity is defined as the sum of the opening and closing balance divided by two.
Interest-bearing and other liabilities relating to properties, divided by the carrying amount of the properties at the end of the period.
Operating surplus for the period divided by the properties' market value at the end of the period.
Equity at the end of the period divided by the number of shares outstanding at the end of the period.
Rental income for the period divided by rental value at the end of the period.
Estimated market rent for unused premises divided by total rental value.
Property management income less nominal tax attributable to property management income, divided by average number of shares. Taxable property management income refers to property management income less, inter alia, tax-deductible depreciation and amortisation and redevelopments.
Equity at the end of the period after reversal of interest rate derivatives and deferred tax attributable to temporary differences in properties and minority share of equity, divided by the number of outstanding shares at the end of the period.
Equity at the end of the period adjusted for actual deferred tax instead of nominal deferred tax and minority share of equity, divided by the number of shares outstanding at the end of the period.
Estimated market rent for vacant space divided by the annual rental value of the whole property portfolio.
Revenue less property costs, costs for central administration and net financial items.
Number of shares outstanding at the beginning of the period, adjusted by the number of shares issued or repurchased during the period weighted by the number of days that the shares were outstanding, in relation to the total number of days in the period.
Rents invoiced for the period less rent losses and rent discounts.
Rent at the end of the period plus a supplement for the estimated market rent for unoccupied floor space.
Profit before tax, adjusted for unrealised changes in value plus depreciation/amortisation less current tax, divided by the average number of shares.
Net annual rent, excluding discounts and supplements, for newly signed, terminated and renegotiated contracts. No account is taken of the length of contracts.
Profit for the period after tax, attributable to shareholders, divided by the average number of shares.
Income from property management after reversal of financial costs, divided by financial costs for the period.
Interest-bearing liabilities in relation to shareholders' equity at the end of the period.
Equity divided by total assets at the end of the period.
Operating surplus for the period divided by the rental income for the period.
DIÖS FASTIGHETER AB (PUBL) FRITZHEMSGATAN 1A, BOX 188, SE-831 22 ÖSTERSUND, TEL: +46 (0)770-33 22 00 CRN: 556501-1771, REGISTERED OFFICE ÖSTERSUND, WWW.DIOS.SE
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