Annual Report • Feb 22, 2017
Annual Report
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Fastighets AB Balder Year-end report
January-December 2016
Fastighets AB Balder is a listed property company which shall meet the needs of different customer groups for premises and housing based on local support. Balder's real estate portfolio had a value of SEK 86.2 billion (68.5) as of 31 December 2016. The Balder share is listed on Nasdaq Stockholm, Large Cap
Comparisons stated in parenthesis refer to the corresponding period of the previous year.
| 2016 Oct-Dec |
2015 Oct-Dec |
2016 Jan-Dec |
2015 Jan-Dec |
2014 Jan-Dec |
2013 Jan-Dec |
2012 Jan-Dec |
2011 Jan-Dec |
2010 Jan-Dec |
2009 Jan-Dec |
|
|---|---|---|---|---|---|---|---|---|---|---|
| Rental income, SEKm | 1,427 | 680 | 5,373 | 2,711 | 2,525 | 1,884 | 1,701 | 1,466 | 1,333 | 854 |
| Profit from property management before tax, SEKm 1) | 650 | 482 | 2,265 | 1,780 | 1,275 | 854 | 691 | 516 | 417 | 315 |
| Changes in value of properties, SEKm | 2,211 | 2,017 | 4,932 | 3,388 | 3,050 | 854 | 812 | 990 | 1,047 | 4 |
| Changes in value of derivatives, SEKm | 312 | 197 | –114 | 227 | –624 | 433 | –71 | –520 | 148 | –23 |
| Profit after tax, SEKm 1) | 2,536 | 2,506 | 5,474 | 4,916 | 3,128 | 1,738 | 1,162 | 812 | 1,338 | 248 |
| Carrying amount of properties, SEKm | 86,177 | 68,456 | 86,177 | 68,456 | 37,382 | 27,532 | 22,278 | 17,556 | 14,389 | 12,669 |
| Average number of shares, thousands | 176,965 163,825 173,598 162,753 161,786 159,537 159,537 158,656 149,487 112,902 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Profit after tax, SEK | 14.05 | 14.99 | 30.38 | 28.98 | 18.10 | 10.11 | 6.69 | 4.87 | 8.95 | 2.20 |
| Profit from property management before tax, SEK | 3.39 | 2.64 | 11.89 | 9.71 | 6.64 | 4.57 | 3.73 | 3.00 | 2.79 | 2.79 |
| Outstanding number of shares, thousands | 180,000 172,397 180,000 172,397 162,397 159,537 159,537 159,537 149,487 149,487 | |||||||||
| Shareholders' equity, SEK | 157.63 | 128.03 | 157,63 | 128.03 | 70.10 | 52.14 | 42.15 | 35.57 | 31.13 | 22.19 |
| Long-term net asset value (EPRA NAV), SEK | 198.49 | 159.14 | 198.49 | 159.14 | 86.33 | 60.50 | 50.37 | 41.83 | 32.89 | 22.16 |
| Share price on the closing date, SEK | 184.10 | 208.70 | 184.10 | 208.70 | 110.25 | 66.00 | 37.30 | 25.30 | 29.40 | 12.50 |
1) Attributable to parent company shareholders.
2) Listed associated companies at market value refers to Collector AB (publ) och Brinova Fastigheter AB (publ).
Profit from property management per ordinary share increased by 22 % during the year and amounted to SEK 11.89. The equivalent result for Q4 was SEK 3.39 per ordinary share, an increase of 28 % compared to the same period last year.
Net asset value per ordinary share increased by 25 % during the year and amounted to SEK 198.49.
Current earning capacity per ordinary share increased by 27 % from SEK 10.64 to SEK 13.52.
In Collector, our largest associated company in terms of value, earnings per share increased by 34 % and equity per share increased by 41 %.
We can thus state that 2016 was a year of great improvements in key ratios per share in both Balder and Collector.
For the long-term shareholder, it is most important to have a belief about how future earnings will develop over time (obvious don't you think?) and after that an opinion about the present value of future earnings (so-called discounting factor). However, small changes in these two key ratios, have a large effect on the value and both Balder and Collector were examples of this during 2016.
Balder's share price fell by 12 % during the year even though key ratios per share improved by about 25 %, in other words, the share price should have been about 40 % higher on 31 December 2016 if the estimates relating to earnings and present value were equivalent to 31 December 2015.
In Collector, the value of the share was 19 % lower despite an improvement of almost 40 % in key ratios per share. Using the same estimates as the previous year-end, the share price should thus have been about 70 % higher.
The fact that stock market expectations can vary so much creates opportunities for both the short-term and long-term investor and I personally think it is fascinating, interesting and fun to follow the changes over the years.
Apart from financial key ratios, 2016 was a year when we performed positively on many fronts. Balder invests in many countries, property categories and projects and also through complete- and part-ownership. I personally believe that all parts of the company improved and this is also generating more business opportunities.
It is a privilege for me to work with all of you!
My guess is that 2017 will also be a year with strong demand for both commercial premises and residential properties in our markets.
The financing opportunities also seem favourable and our financing base has been broadened further as we now have an official rating.
We have now supplemented our financial goals as follows – an equity/assets ratio (min. 35 %) and a net debt to assets ratio (max. 55 %). These key ratios are obviously much alike, but the net debt to assets key ratio is increasingly used, which means that it is good for us to clarify our goal in relation to this.
The future is bright and despite intense competition among investors, I feel optimistic as usual regarding the potential to find reasonably good investments over time.
Erik Selin Chief Executive Officer
Balder presents its earning capacity on a twelve-month basis in the table below. It is important to note that the current earning capacity should not be placed on a par with a forecast for the coming 12 months. For instance, the earning capacity contains no estimate of rental, vacancy, currency or interest rate changes.
Balder's income statement is also impacted by the development in the value of the real estate portfolio as well as future property acquisitions and/or property divestments. Additional items affecting the operating result are changes in value of derivatives. None of the above has been considered in the current earning capacity.
The earning capacity is based on the real estate portfolio's contracted rental income, estimated property costs during a normal year as well as administrative costs. The costs of the interest-bearing liabilities are based on the group's average interest rate level including the effect of derivative instruments. The tax is calculated using the effective tax rate during each period.
| SEKm | 2016 31 Dec |
2016 30 Sep |
2016 30 June |
2016 31 Mar |
2015 31 Dec |
2015 30 Sep |
2015 30 June |
2015 31 Mar |
2014 31 Dec |
2014 30 Sep |
2014 30 June |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Rental income | 5,800 | 5,470 | 5,325 | 5,135 | 5,045 | 2,725 | 2,650 | 2,745 | 2,730 | 2,650 | 2,600 |
| Property costs | –1,695 | –1,690 | –1,685 | –1,670 | –1,635 | –775 | –760 | –800 | –800 | –795 | –785 |
| Net operating income | 4,105 | 3,780 | 3,640 | 3,465 | 3,410 | 1,950 | 1,890 | 1,945 | 1,930 | 1,855 | 1,815 |
| Management and | |||||||||||
| administrative costs | –490 | –490 | –480 | –440 | –425 | –175 | –175 | –170 | –165 | –165 | –165 |
| Profit from property | |||||||||||
| management from | |||||||||||
| associated companies | 505 | 470 | 420 | 355 | 340 | 560 | 500 | 410 | 220 | 200 | 180 |
| Operating profit | 4,120 | 3,760 | 3,580 | 3,380 | 3,325 | 2,335 | 2,215 | 2,185 | 1,985 | 1,890 | 1,830 |
| Net financial items | –1,040 | –1,025 | –1,010 | –930 | –880 | –530 | –575 | –575 | –585 | –580 | –580 |
| Of which non-controlling | |||||||||||
| interests | –445 | –445 | –380 | –400 | –410 | – | – | – | – | – | – |
| Profit from | |||||||||||
| property management | 2,635 | 2,290 | 2,190 | 2,050 | 2,035 | 1,805 | 1,640 | 1,610 | 1,400 | 1,310 | 1,250 |
| Taxes | –570 | –490 | –470 | –440 | –439 | –397 | –361 | –354 | –308 | –288 | –275 |
| Profit after tax | 2,065 | 1,800 | 1,720 | 1,610 | 1,596 | 1,408 | 1,279 | 1,256 | 1,092 | 1,021 | 975 |
| Profit after tax attributable to |
|||||||||||
| Ordinary shareholders | 1,865 | 1,600 | 1,520 | 1,410 | 1,396 | 1,208 | 1,079 | 1,056 | 892 | 821 | 775 |
| Preference shareholders | 200 | 200 | 200 | 200 | 200 | 200 | 200 | 200 | 200 | 200 | 200 |
| Profit from property management before tax according to current earning capacity per |
|||||||||||
| ordinary share, SEK | 13.52 | 11.92 | 11.55 | 10.73 | 10.64 | 9.88 | 8.87 | 8.68 | 7.39 | 6.83 | 6.47 |
Under IFRS, Collector AB (publ) and Brinova Fastigheter AB (publ) should not be recognised at market value when Balder reports its participation in the profit from associated companies from these companies. In order to clarify the listed associated companies at market value, Collector and Brinova is reported below at the share price as of 31 December. Brinova Fastigheter AB (publ) is included from 30 September 2016, when the company was listed.
| SEKm | 2016 31 Dec |
2015 31 Dec |
|---|---|---|
| Assets | ||
| Investment properties | 86,177 | 68,456 |
| Other fixed assets | 136 | 122 |
| Participations in associated companies 1,2) | 6,673 | 6,549 |
| Other receivables | 1,357 | 1,497 |
| Cash and cash equivalents and financial investments | 1,592 | 1,025 |
| Total assets | 95,935 | 77,649 |
| Shareholders' equity and liabilities | ||
| Shareholders' equity 3) | 36,791 | 29,325 |
| Deferred tax liability | 5,808 | 4,071 |
| Interest-bearing liabilities | 49,580 | 41,063 |
| Derivatives | 1,547 | 1,294 |
| Other liabilities | 2,209 | 1,896 |
| Total equity and liabilities | 95,935 | 77,649 |
| 1) Including Balder's market value of Collector AB (publ) Collector's share price (SEK) |
4,661 103.00 |
5,224 127.00 |
| 2) Including Balder's market value of Brinova Fastigheter AB (publ) Brinova's share price (SEK) |
282 15.30 |
– – |
| 3) Of which non-controlling interests | 5,540 | 4,377 |
| SEKm | 2016 31 Dec |
2015 31 Dec |
|---|---|---|
| Opening equity | 29,325 | 14,261 |
| Total comprehensive income for the period/year | 6,507 | 4,909 |
| Dividend preference shares, approved and entered as a liability | –200 | –200 |
| Share issue, after issue costs | 1,780 | 1,705 |
| Transactions with non-controlling interests | –107 | – |
| Dividend to non-controlling interests | –107 | – |
| Non-controlling interests, arising on the acquisitions of subsidiary | – | 4,377 |
| Non-controlling interests, arising on share issue in subsidiary | 554 | – |
| The change during the period of listed associated companies at market value | –962 | 4,273 |
| Closing equity | 36,791 | 29,325 |
Profit from property management for the year amounted to SEK 2,653m (1,780). Profit from property management attributable to parent company shareholders increased by 27 % and amounted to SEK 2,265m (1,780), which corresponds to an increase per ordinary share by 22 % to SEK 11.89 (9.71). Profit from property management includes SEK 419m (457) in respect of associated companies.
Net profit after tax for the year amounted to SEK 6,093m (4,916). Net profit after tax for the period attributable to parent company shareholders amounted to SEK 5,474m (4,916), corresponding to SEK 30.38 per ordinary share (28.98). Profit before tax was affected by changes in value in respect of properties of SEK 4,932m (3,388), changes in value of interest rate derivatives of SEK –114m (227) and profit from participations in associated companies of SEK 590m (831).
Rental income increased by 98 % to SEK 5,373m (2,711). The increase was primarily due to Sato Oyj, whose income statement was consolidated for the first time from January 1, 2016. The leasing portfolio was estimated to have a rental value on 31 December of SEK 6,089m (5,257). The average rental level for the entire real estate portfolio amounted to SEK 1,583/sq.m. (1,508) excl. project properties.
Rental income shows a considerable diversification of risks as regards tenants, sectors and locations. The economic occupancy rate amounted to 95 % (96) on 31 December. The total rental value of unlet areas at the end of the year amounted to SEK 289m (182) on an annual basis.
Property costs amounted to SEK 1,693m (767) during the year. The increase in property costs was mainly due to the consolidation of Sato Oyj.
Net operating income increased by 89 % to SEK 3,679m (1,944), which implies a surplus ratio of 68 % (72). Operating costs normally vary with the seasons. The first and fourth quarters have higher costs than the other quar-ters, while the third quarter usually has the lowest cost level.
Balder carried out an individual valuation on 31 December of the entire real estate portfolio (see page 9). Unrealised changes in value during the year amounted to SEK 4,847m (3,323). Realised changes in value amounted to SEK 85m (65).
The average yield requirement as of 31 December amounted to 5.3 % (5.4). The change in value during the year was attributable to improved net operating income and a slightly reduced yield requirement.
Management and administrative costs amounted to SEK 488m (185) during the year. The increase was mainly due to the consolidation of Sato Oyj.
Balder owns property managing and project developing associated companies and 44.1 % in Collector AB (publ) which is listed. During September was Balders associated company Brinova Fastigheter AB (publ) listed, Balder's share amounts to 25.5 % as of 31 December.
In order to clarify these associated companies value in Balder, Balder also reports a consolidated statement of financial position including listed associated companies at market value (see page 5).
During the year 49 % of the shares in Sjaelsö Management ApS were acquired. Sjaelsö Management is one of the major actors in project development and construction management in Denmark.
Profit from participations in associated companies amounted to SEK 590m (831) and Balder's participation in the associated companies profit from property management amounted to SEK 419m (457).
Profit before tax was impacted by unrealised changes in value in respect of properties and interest rate derivatives of SEK 343m (410).
Net financial items amounted to SEK –973m (–437) and changes in value of interest rate derivatives amounted to SEK –114m (227). The negative change in value of derivatives during the year is due to the fact that the interest rates have fallen during the year. Unrealised changes in value do not affect the cash flow.
Net financial items are equivalent to borrowing at an average interest rate of 2.1 % (1.8) during the year, including the effect of accrued interest from interest rate derivatives.
Balder's tax cost for the year amounted to SEK –1,550m (–862) of which SEK –226m (4) is current tax for the year, mainly attributable to the consolidation of Sato Oyj, and also a deferred tax expense of SEK –1,325m (–866). Current tax attributable to parent company shareholders amounted to SEK –135m (4).
The group's deferred tax liability has been calculated as the value of the net of fiscal deficits and the temporary differences between the carrying amounts and values for tax purposes of properties and interest rate derivatives. Deferred tax liabilities amounted to SEK 5,808m (4,071).
Profit from property management for the fourth quarter of 2016 increased by 54 % and amounted to SEK 742m (482). Profit from property management attributable to parent company shareholders for the fourth quarter of 2016 increased by 35 % and amounted to SEK 650m (482) which corresponds to an increase per ordinary share of 28 % to SEK 3.39 (2.64).
Profit from property management included SEK 125m (128) in respect of associated companies. Rental income amounted to SEK 1,427m (680) and property costs amounted to SEK 425m (172), which meant that net operating income increased by 97 % to SEK 1,002m (508). The increase compared to the same period last year is mainly due to the consolidation of Sato Oyj from 1 January 2016. The surplus ratio amounted to 70 % (75). The decline in the surplus ratio is due to the consolidation of Sato Oyj, which primarily owns residential properties, with generally higher property costs compared to commercial properties.
Net profit after tax for the period amounted to SEK 2,704m (2,506). Profit after tax attributable to parent company shareholders amounted to SEK 2,536 (2,506) corresponding to SEK 14.05 per ordinary share (14.99). The result was affected by changes in value in respect of properties of SEK 2,211m (2,017), changes in value of interest rate derivatives of SEK 312m (197) and profit from participations in associated companies of SEK 236m (359). The average yield requirement on 31 December amounted to 5.3 % which is unchanged compared to September 2016.
Cash flow from operating activities before changes in working capital amounted to SEK 2,135m (1,193). Investing activities have burdened the cash flow by SEK 8,401m (5,635).
During the year, acquisition of properties of SEK 7,648m (2,097), investments in existing properties and projects of SEK 1,843m (791), investments in property, plant and equipment, financial investments and associated companies and transactions with non-controlling interests SEK 785m (4,857), dividends paid preference shares of SEK 200m (200) and dividends paid to non-controlling interests SEK 107m (–) adds up to SEK 10,583m (7,945).
These have been financed through cash flow from operating activities of SEK 2,891m (762), by property divestments of SEK 1,651m (1,606), financial investments of SEK 225m (504), new issue of SEK 1,780m (1,705), new issue in the subsidiary Sato Oyj of SEK 420m (–), and net borrowings of SEK 5,382m (3,788), which adds up to SEK 11,250m (8,365).
Total cash flow for the year amounted to SEK 667m (421). In addition to unutilised credit facilities of SEK 4,827m (4,545), the group's cash and cash equivalents, financial Investments and unutilised credit facilities amounted to SEK 1,942m (1,339) on 31 December.
The number of employees on 31 December amounted to 546 persons (522), of whom 255 were women (234). Balder is, after the acquisition of Sato Oyj, organised into six regions with 17 areas in total. The head office with groupwide functions is located in Gothenburg.
The parent company's operations mainly consist of performing group-wide services but an important part relates to sales of services, principally to associated companies. Sales in the parent company amounted to SEK 209m (147) during the year.
Net profit after tax amounted to SEK 1,311m (1,061). Dividend from subsidiary were included with SEK 1,430m (800), and unrealised changes in value of interest rate derivatives amounted to SEK –151m (199) and group contributions paid amounted to –568m (–340).
The board intends propose to the annual general meeting that no dividend shall be declared for ordinary shares (–) and that a dividend of SEK 20 per share (20) shall be paid for preference shares.
The annual report for 2016 will be available on Balder's website, www.balder.se, from week 14, 2017.
Fastighets AB Balder's annual general meeting will take place on Thursday, 11 May 2017 at 4.00 p.m. at Radisson BLU Scandinavia Hotel, Södra Hamngatan 59, in Gothenburg.
On 31 December Balder owned 1,220 properties (1,177) with a lettable area of 3,806 sq.m. (3,430) and a value of SEK 86,177m (68,456), including project properties. Balder's total rental value excluding project properties amounted to SEK 6,025m (5,173). Balder's commercial properties are
mainly located in the central parts of large cities. Balder's residential properties are located in metropolitan areas and places that are growing and developing positively. Balder's ambition is to continue growing in selected markets.
| Number of properties |
Lettable area, sq.m. |
Rental value, SEKm |
Rental value, SEK/sq.m. |
Rental income, SEKm |
Economic occupancy rate, % |
Carrying amount, SEKm |
Carrying amount, % |
|
|---|---|---|---|---|---|---|---|---|
| Distributed by region | ||||||||
| Helsinki | 501 | 1,010,505 | 2,122 | 2,100 | 2,025 | 95 | 24,393 | 28 |
| Stockholm | 61 | 533,904 | 927 | 1,736 | 867 | 94 | 15,797 | 18 |
| Gothenburg | 194 | 903,206 | 1,150 | 1,274 | 1,108 | 96 | 17,053 | 20 |
| Öresund | 71 | 418,022 | 624 | 1,493 | 580 | 93 | 10,368 | 12 |
| East | 314 | 758,121 | 992 | 1,309 | 949 | 96 | 11,021 | 13 |
| North | 79 | 181,755 | 209 | 1,150 | 206 | 99 | 3,086 | 4 |
| Total | 1,220 | 3,805,512 | 6,025 | 1,583 | 5,736 | 95 | 81,718 | 95 |
| Project | 64 | 64 | 4,459 | 5 | ||||
| Total | 1,220 | 3,805,512 | 6,089 | 1,583 | 5,800 | 95 | 86,177 | 100 |
| Distributed by property category | ||||||||
| Residential | 1,020 | 2,531,547 | 3,973 | 1,569 | 3,819 | 96 | 48,775 | 57 |
| Office | 68 | 432,228 | 865 | 2,002 | 783 | 90 | 14,139 | 16 |
|---|---|---|---|---|---|---|---|---|
| Retail | 89 | 499,778 | 598 | 1,197 | 569 | 95 | 9,154 | 11 |
| Other | 43 | 341,960 | 588 | 1,718 | 565 | 96 | 9,650 | 11 |
| Total | 1,220 | 3,805,512 | 6,025 | 1,583 | 5,736 | 95 | 81,718 | 95 |
| Project | 64 | 64 | 4,459 | 5 | ||||
1) The above table refers to the properties owned by Balder at the end of the period. Sold properties have been excluded and acquired properties have been estimated using full-year values. Other properties include hotel, educational, nursing, industrial and mixed-use properties.
The value of Balder's real estate portfolio is based on internal valuations. The properties in Sweden, Denmark and Norway have been valued using the cash flow based method. In Finland, in addition to the cash flow based method, the sales comparison method and valuation at acquisition cost are used. On 31 December, Balder's average yield requirement amounted to 5.3 % (5.4) excluding project and development properties.
In order to quality-assure its internal valuations, Balder regularly allows parts of its portfolio to be externally valued during the period or at each year-end. During the year, Balder has externally valued approximately 40 % of the properties, including Sato's property portfolio. The external valuation was less than 1 per cent higher than Balder's internal valuation at year-end. Historically, deviations between external and internal valuations have been insignificant.
On 31 December, Balder had ongoing residential projects with an expected total investment of SEK 8.0 billion, of which about SEK 4.0 billion was already invested. The most large scale investments are in Copenhagen and Helsinki and mainly relate to condominiums for rent. In Copenhagen, there are currently about 1,400 apartments under construction as well as about 1,300 apartments in Helsinki.
The overall carrying amount of Balder's properties amounted to SEK 86,177m (68,456) on 31 December. The unrealised change in value during the period amounted to SEK 4,847m (3,323) and was attributable to improved net operating income and slightly lower yield.
During the year, a total of SEK 13,185m (29,451) was invested, of which SEK 11,342m (28,660) related to acquisitions and SEK 1,843m (791) related to investments in existing properties and projects.
The majority of the acquisitions during the year refers to acquisitions in Sato Oyj and the acquired properties from the group I.A. Hedin Fastighet AB. Properties with a sales value of SEK 1,990m (1,613) were divested during the year. Profit from property sales amounted to SEK 85m (65). The change in the real estate portfolio during the period is presented in the table below.
| SEKm | Number 1) | SEKm | Number 1) | |
|---|---|---|---|---|
| Real estate portfolio, 1 January | 68,456 | 1,177 | 37,382 | 486 |
| Investments in existing properties and projects | 1,843 | 791 | ||
| Acquisitions | 11,342 | 116 | 28,660 | 714 |
| Sales/Reclassifications | –1,905 | –73 | –1,542 | –23 |
| Change in value of investment properties, unrealised | 4,847 | 3,323 | ||
| Currency changes | 1,593 | –158 | ||
| Real estate portfolio, 31 December | 86,177 | 1,220 | 68,456 | 1,177 |
1) Number of investment properties.
| Quarter | Number | Name of property | Property category | Lettable area, sq.m. | |
|---|---|---|---|---|---|
| Acquisitions | |||||
| One | 1 | Lorensberg 45:20 | Gothenburg | Hotel | 3,662 |
| One | 1 | Sato Oyj | Finland | Residential | 1,652 |
| Two | 53 | Sato Oyj | Finland | Residential | 123,089 |
| Two | 1 | Högskolan Hedmark, Elverum | Norway | Education | 16,393 |
| Two | 1 | Lindholmen 29:1 | Gothenburg | Office | 12,223 |
| Two | 1 | Heden 47:3 | Gothenburg | Office | 7,541 |
| Two | 1 | Hotel Österport, Köpenhamn | Denmark | Hotel | 6,325 |
| Three | 6 | Sato Oyj | Finland | Residential | 27,257 |
| Four | 8 | Sato Oyj | Finland | Residential | 17,249 |
| Four | 1 | Plutonen 1 | Borås | Retail | 13,120 |
| Four | 1 | Gothenburg Tuve 116:6 | Gothenburg | Retail | 3,213 |
| Four | 1 | Högsbo 36:8 | Gothenburg | Retail | 2,448 |
| Four | 1 | Visionen 4 | Jönköping | Retail | 22,833 |
| Four | 1 | Hede 4:14 | Kungsbacka | Retail | 4,177 |
| Four | 1 | Kärra 32:22 | Gothenburg | Retail | 2,800 |
| Four | 1 | Leoparden 2 | Mölndal | Retail | 22,640 |
| Four | 1 | Pianot 5 | Mölndal | Retail | 2,329 |
| Four | 1 | Högsbo 36:2 | Gothenburg | Retail | 6,053 |
| Four | 1 | Kardanen 4 | Varberg | Retail | 3,847 |
| Four | 1 | Gaslyktan 2 | Mölndal | Retail | 3,564 |
| Four | 1 | Frölandsgärdet 2 | Uddevalla | Retail | 5,651 |
| Four | 1 | Fullriggaren 1 | Trollhättan | Retail | 2,200 |
| Four | 1 | Smedjan 3 | Alingsås | Retail | 3,222 |
| Four | 1 | Presenten 1 | Mölndal | Retail | 13,577 |
| Four | 1 | Kärra 95:3 | Gothenburg | Retail | 7,209 |
| Four | 1 | Presenten 2 | Mölndal | Retail | 2,325 |
| Four | 1 | Kärra 73:1-2 | Gothenburg | Retail | 4,372 |
| Four | 1 | Varmvattnet 3 | Stockholm | Retail | 33,009 |
| Four | 1 | Fordonet 1 | Karlskoga | Retail | 1,660 |
| Four | 1 | Alptanäs 1 | Stockholm | Retail | 9,794 |
| Four | 1 | Paletten 2 | Linköping | Retail | 5,757 |
| Four | 1 | Papegojan 1 | Linköping | Retail | 7,805 |
| Four | 1 | Grävmaskinen 23 | Södertälje | Retail | 2,391 |
| Four | 1 | Denmarks-Säby 11:1 | Uppsala | Retail | 21,439 |
| Four | 1 | Stjärnregnet 1 | Örebro | Retail | 4,341 |
| Four | 1 | Stenalyckan 2 | Halmstad | Retail | 3,750 |
| Four | 1 | Eketånga 24:47 | Halmstad | Retail | 3,220 |
| Four | 1 | Eketånga 24:20 | Halmstad | Retail | 5,836 |
| Four | 1 | Hammar 9:184 | Kristianstad | Retail | 5,135 |
| Four | 1 | Topplocket 1 | Kristianstad | Retail | 6,509 |
| Four | 1 | Hästkälken 3 | Malmö | Retail | 2,290 |
| Four | 1 | Sjötungan 1 | Värnamo | Retail | 5,349 |
| Four | 1 | Linné 9 | Ljungby | Retail | 1,975 |
| Four | 1 | Anderstorp 8:16 | Gislaved | Retail | 1,500 |
| Four | 1 | Taktäckaren 6 | Ängelholm | Retail | 6,760 |
| Four | 1 | Automobilen 1 | Malmö | Retail | 8,045 |
| Quarter | Number | Name of property | Property category | Lettable area, sq.m. | |
|---|---|---|---|---|---|
| Four | 1 | Kopparkisen 13 | Lund | Retail | 4,804 |
| Four | 1 | Tågarp 16:12 | Burlöv | Retail | 3,360 |
| Four | 1 | Huggjärnet 10 | Helsingborg | Retail | 11,110 |
| Four | 1 | Skräddaren 5 | Ängelholm | Retail | 1,172 |
| Four | 1 | Zirkonen 3 | Helsingborg | Retail | 5,500 |
| Four | 1 | Verkstaden 11, Snickeriet 16-17 | Trelleborg | Retail | 1,820 |
| Total | 116 | 505,302 | |||
| Divestments | |||||
| One | 1 | Miklaholt 2 | Stockholm | Office | 1,916 |
| One | 1 | Backa 170:1 | Gothenburg | Other | 3,500 |
| One | 1 | Advokaten 1 | Töreboda | Retail | 2,128 |
| One | 1 | Rönnen 11 | Töreboda | Residential | 1,039 |
| One | 1 | Sotaren 12 | Töreboda | Residential | 976 |
| One | 1 | Byggmästaren 5 | Töreboda | Residential | 1,381 |
| One | 1 | Plåtslagaren 9 | Töreboda | Residential | 1,849 |
| One | 1 | Rådhuset 40 | Skara | Residential | 2,103 |
| One | 1 | Tallen 7 | Skara | Residential | 852 |
| One | 1 | Frigga 4 | Skara | Residential | 824 |
| One | 1 | Frigga 5 | Skara | Residential | 828 |
| One | 1 | Fjärilen 6 | Skara | Residential | 350 |
| One | 1 | Svärdet 11 | Skara | Residential | 412 |
| One | 1 | Bromsen 5 | Skara | Residential | 534 |
| One | 1 | Bisittaren 6 | Skara | Residential | 300 |
| One | 1 | Bisittaren 2 | Skara | Residential | 354 |
| One | 1 | Smörberget 2 | Skara | Residential | 410 |
| One | 1 | Almen 4 | Skara | Residential | 709 |
| One | 1 | Sländan 1 | Skara | Residential | 1,434 |
| One | 1 | Plymen 4, 5 | Skara | Residential | 705 |
| One | 1 | Tor 6 | Skara | Residential | 1,141 |
| One | 1 | Heimdal 1 | Skara | Residential | 682 |
| One | 1 | Heimdal 4 | Skara | Residential | 672 |
| One | 1 | Tyr 1 | Skara | Residential | 680 |
| One | 1 | Boken 38 | Skara | Residential | 967 |
| One | 1 | Aspen 1 | Skara | Residential | 1,465 |
| One | 1 | Tor 10 | Skara | Residential | 689 |
| One | 6 | Sato Oyj | Finland | Residential | 2,946 |
| Two | 4 | Sato Oyj | Finland | Residential | 2,169 |
| Three | 1 | Mjälaryd 3:300 | Jönköping | Residential | 2,948 |
| Three | 1 | Hålan 6:2 | Jönköping | Residential | 10,280 |
| Three | 1 | Lejoninnan 10 | Jönköping | Residential | 11,161 |
| Three | 1 | Björnen 6 | Jönköping | Office | 949 |
| Three | 1 | Tigern 7 | Jönköping | Residential | 6,001 |
| Three | 7 | Sato Oyj | Finland | Residential | 28,458 |
| Four | 1 | Resedan 15 | Vänersborg | Residential | 2,406 |
| Four | 21 | Sato Oyj | Finland | Residential | 36,004 |
| Total | 71 | 132,222 |
Balder owns 50 % of a number of companies where Balder handles the management and administration, for further information, see page 50-52 in Balder's Annual Report for 2015. In addition during the year, Trenum AB has become an associated company. In Trenum AB Balder is a 50 %-owner together with the Third Swedish National Pension Fund. Balder's 50 %-owned associated companies are shown in
the table below. Apart from the 50 %-owned associated companies, Balder owns 44.1 % (44.1) in Collector AB (publ), 31 % (31) of Tornet Bostadsproduktion AB, 25.5 % (35) of Brinova Fastigheter AB (publ) and 49 % (–) in Sjaelsö Management ApS. For more information about these associated companies, see each companys website: Collector.se, Tornet.se, Brinova.se and Sjaelsoemanagement.dk.
| Number of properties 2) |
Lettable area, sq.m. |
Rental value, SEKm |
Rental value, SEK/sq.m. |
Rental income, SEKm |
Economic occupancy rate, % |
Carrying amount, SEKm |
Carrying amount, % |
|
|---|---|---|---|---|---|---|---|---|
| Distributed by region | ||||||||
| Stockholm | 45 | 108,794 | 164 | 1,508 | 160 | 98 | 2,649 | 44 |
| Gothenburg | 11 | 47,506 | 58 | 1,213 | 54 | 93 | 892 | 15 |
| Öresund | 25 | 62,536 | 91 | 1,455 | 89 | 98 | 1,344 | 22 |
| Total | 81 | 218,836 | 313 | 1,429 | 303 | 97 | 4,885 | 82 |
| Project | 21 | 21 | 1,106 | 18 | ||||
| Total | 81 | 218,836 | 333 | 1,429 | 324 | 97 | 5,991 | 100 |
| Distributed by property category | ||||||||
| Residential | 27 | 45,453 | 69 | 1,524 | 68 | 98 | 1,329 | 22 |
| Office | 11 | 29,315 | 55 | 1,871 | 50 | 91 | 900 | 15 |
| Retail | 34 | 94,964 | 105 | 1,111 | 103 | 98 | 1,512 | 25 |
| Other | 9 | 49,104 | 83 | 1,692 | 83 | 99 | 1,145 | 19 |
| Total | 81 | 218,836 | 313 | 1,429 | 303 | 97 | 4,885 | 82 |
| Project | 21 | 21 | 1,106 | 18 | ||||
| Total | 81 | 218,836 | 333 | 1,429 | 324 | 97 | 5,991 | 100 |
1) The above table refers to the properties owned by the associated companies at the end of the period. Sold properties have been excluded and acquired properties have been estimated using full-year values. Other properties include hotel, educational, nursing, industrial and mixed-use properties. 2) Refers to the entire portfolio of the associated companies.
| SEKm | 2016 31 Dec |
2015 31 Dec |
|---|---|---|
| Assets | ||
| Properties | 5,991 | 4,414 |
| Other assets | 54 | 247 |
| Cash and cash equivalents | 203 | 61 |
| Total assets | 6,248 | 4,723 |
| Shareholders' equity and liabilities | ||
| Equity/shareholder loan | 2,549 | 1,726 |
| Interest-bearing liabilities | 3,319 | 2,501 |
| Other liabilities | 379 | 496 |
| Total equity and liabilities | 6,248 | 4,723 |
In order to limit the risk of lower rental income and consequently a weakened occupancy rate, Balder strives to develop long-term relationships with the company's existing customers. Balder has a good diversification as regards the distribution between commercial properties and residential properties as well as the geographical distribution. The diversification strengthens the possibilities of maintaining a steady and satisfactory occupancy rate. Balder's commercial leases have an average lease term of 7.1 years (6.3). Balder's 10 largest leases represent 5.6 % (6.1) of total rental income and the average lease term amounts to 11.8 years (11.1). No individual lease accounts for more than 0.8 % (0.9) of Balder's total rental income and no individual customer accounts for more than 4.0 % (2.7) of total rental income.
| Maturity date | Number of leases |
Proportion, % | Contracted rent, SEKm |
Proportion, % |
|---|---|---|---|---|
| 2017 | 1,071 | 37 | 176 | 3 |
| 2018 | 694 | 24 | 237 | 4 |
| 2019 | 491 | 17 | 270 | 5 |
| 2020 | 329 | 11 | 222 | 4 |
| 2021– | 329 | 11 | 1,095 | 19 |
| Total | 2,914 | 100 | 2,000 | 34 |
| Residential 1) | 38,000 | 3,740 | 64 | |
| Car park 1) | 5,879 | 17 | 0 | |
| Garage 1) | 4,529 | 43 | 1 | |
| Total | 51,322 | 5,800 | 100 |
1) Normally runs subject to a period of notice of three months.
Consolidated equity, including listed associated companies at market value, amounted to SEK 36,791m (29,325) on 31 December and the equity/assets ratio amounted to 38.3 % (37.8).
During the year, equity increased by comprehensive income for the period of SEK 6,507m (4,909), new issue after issue costs of SEK 1,780m (1,705) and the minoritys part of the new issue in Sato Oyj of SEK 554m (–). Equity decreased by SEK –200m (–200) regarding dividends approved and entered as a liability to the preference shareholders, decreased by SEK –107m (–) regarding dividends to non-controlling interests, the change in market value of the holding in Collector AB (publ) and Brinova Fastigheter AB (publ) SEK –962m (4,273) and decreased by SEK –107m (–) regarding transactions with non-controlling interests.
The majority of Balder's liabilities are revolving bilateral liabilities with eight different Nordic banks. Apart from bank financing, Balder has outstanding bonds totalling SEK 10,972m (7,865) and outstanding certificates of SEK 3,002m (2,680). The secured liabilities in relation to total assets amounted to 39.6 % (42.2) on 31 December.
| Financial targets | Target | Outcome 1) | |
|---|---|---|---|
| Equity/assets ratio, % | min. | 35.0 | 38.3 |
| Net debt to assets, % | max. | 55.0 | 50.0 |
| Interest coverage ratio, times | min. | 2.0 | 3.7 |
1) Key ratios including listed associated companies at market value.
| Fixed interest term | |||||
|---|---|---|---|---|---|
| Year | SEKm | Interest, % | Proportion, % | ||
| Within one year | 25,975 | 1.0 | 52 | ||
| 1–2 years | 4,742 | 4.6 | 10 | ||
| 2–3 years | 1,959 | 3.3 | 4 | ||
| 3–4 years | 4,416 | 2.7 | 9 | ||
| 4–5 years | 7,736 | 3.0 | 16 | ||
| > 5 years | 4,752 | 3.0 | 10 | ||
| Total | 49,580 | Q3 2.1 |
100 |
| Fixed credit term | ||||
|---|---|---|---|---|
| Year | SEKm | Proportion, % | ||
| Within one year | 16,174 | 33 | ||
| 1–2 years | 5,115 | 10 | ||
| 2–3 years | 8,677 | 18 | ||
| 3–4 years | 6,199 | 13 | ||
| 4–5 years | 5,268 | 11 | ||
| > 5 years | 8,147 | 16 | ||
| Total | 49,580 | 100 |
On 31 December, Balder had credit facilities of SEK 4,827m (4,745) of which SEK 4,827m (4,545) were unutilised. Apart from these facilities, Balder had cash and cash equivalents, unutilised overdrafts and financial investments of SEK 1,942m (1,339). Balder aIso has credit facilities that fully covers future payments for ongoing construction projects. The interest rate refixing period and fixed credit term amounted to 2.4 years (2.9) and 4.2 years (4.4). During December Balder obtained a credit rating of 'Baa3' from Moody's with a stable outlook. The rating primarily reflects the Company's focus on stable rental housing properties in Sweden and Finland as well as the prime locations of its commercial properties in Sweden's largest cities and the company's conservative dividend policy.
Balder's financial goals are an equity/assets ratio not less than 35 %, an interest coverage ratio not less than 2.0 times and a net debt to assets ratio of not higher than 55 %. The net debt to assets ratio is calculated as net interest-bearing liabilities divided by total assets including listed associated companies at market value. As of 31 December, the equity/assets ratio was 38.3 % (37.8), the interest coverage ratio was 3.7 times (5.1) and the net debt to assets ratio was 50.0 % (51.6).
Fixed interest term
Fastighets AB Balder has, in two different transactions, sold all properties in Tranås, Falköping, Arboga and Köping. The lettable area amounts to 221,000 square meters and it has been assigned a property value of just over SEK 2 billion. Balder's sales exceed book values by approximately SEK 130 million, corresponding to 7% and will be recorded in the second quarter 2017. After the end of the reporting period no other significant events has occured.
Balder receives fees from associated companies and Erik Selin Fastigheter AB for property and company management services. These fees amounted to SEK 34m (29) during the year and are reported in management and administrative costs. In addition, sevices are bought from Collector AB (publ).
Balder's operations, financial position and results may be affected by a number of risks and uncertainty factors. These are described in the Annual Report for 2015, on pages 53-55. Otherwise, no significant changes has been noterats.
Balder applies IFRS (International Financial Reporting Standards) as adopted by the European Union in its consolidated accounts and the interpretations of these (IFRIC). This interim report is prepared in accordance with IAS 34, Interim Financial Reporting. In addition, relevant provisions of the Swedish Annual Accounts Act and the Swedish Securities Markets Act have also been applied. The parent company has prepared its financial statements in accordance with the Annual Accounts Act, the Securities Markets Act and RFR 2, Accounting for Legal Entities.
The accounting policies and calculation methods applied are unchanged compared with the Annual Report for 2015. The company has applied the new guidelines for alternative key ratios, "Alternative Performance Measures" (APMs) by ESMA. Definitions of the key ratios are found on page 25.
Ahead of the annual general meeting on 11 May 2017, the board intends to propose that the meeting should pass resolutions regarding the following matters:
This interim report has been subject to review by the company's auditors.
Gothenburg 22 February 2017
Erik Selin Chief Executive Officer Review report of condensed interim financial information (interim report) prepared in accordance with IAS 34 and Chapter 9 of the Swedish Annual Accounts Act.
We have reviewed the condensed interim financial information (interim report) for Fastighets AB Balder (publ), corp. id. no. 556525-6905 as of 31 December 2016 and for the twelve-month period that ended on this date. The Board of Directors and the President are responsible for the pre- paration and presentation of this interim financial informa- tion in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.
We conducted our review in accordance with the International Standard on Review Engagements, ISRE 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review of the interim report consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review has a different focus and is substantially smaller in scope than an
audit conducted in accordance with International Standards on Auditing (ISA) and other generally accepted auditing practices. The procedures performed in a review do not ena- ble us to obtain a level of assurance that would make us aware of all significant matters that might be identified in an audit. Accordingly, the conclusion expressed based on a review does not constitute the same level of assurance as a conclusion based on an audit.
Based on our review, nothing has come to our attention that give us reason to believe that the interim report, in all material respects, is not prepared for the Group in compliance with IAS 34 and the Swedish Annual Accounts Act and for the Parent Company in compliance with the Swedish Annual Accounts Act.
Gothenburg, 22 February 2017 Öhrlings PricewaterhouseCoopers AB
Helén Olsson Svärdström Authorised Public Accountant
| SEKm | 2016 Oct-Dec |
2015 Oct-Dec |
2016 Jan-Dec |
2015 Jan-Dec |
|---|---|---|---|---|
| Rental income | 1,427 | 680 | 5,373 | 2,711 |
| Property costs | –425 | –172 | –1,693 | –767 |
| Net operating income | 1,002 | 508 | 3,679 | 1,944 |
| Changes in value of properties, realised | 23 | 1 | 85 | 65 |
| Changes in value of properties, unrealised | 2,188 | 2,016 | 4,847 | 3,323 |
| Other income/costs | 10 | 1 | 17 | 2 |
| Non-recurring items | – | 9 | – | 9 |
| Management and administrative costs | –130 | –50 | –488 | –185 |
| Participations in the profits of associated companies | 236 | 359 | 590 | 831 |
| Operating profit | 3,328 | 2,844 | 8,730 | 5,988 |
| Net financial items | –264 | –105 | –973 | –437 |
| Changes in value of derivatives | 312 | 197 | –114 | 227 |
| Profit before tax | 3,376 | 2,936 | 7,643 | 5,778 |
| Tax | –672 | –431 | –1,550 | –862 |
| Net profit for the period/year | 2,704 | 2,506 | 6,093 | 4,916 |
| Net profit after tax for the period/year | ||||
| attributable to: | ||||
| Parent company shareholders | 2,536 | 2,506 | 5,474 | 4,916 |
| Non-controlling interests | 168 | – | 619 | – |
| 2,704 | 2,506 | 6,093 | 4,916 | |
| Other comprehensive income - Items that may be subsequently reclassified to profit or loss |
||||
| Translation difference relating to foreign operations | –75 | –18 | 438 | 3 |
| Cash flow hedges after tax | 87 | – | –26 | – |
| Participation in other comprehensive income of associated companies | 0 | –7 | 2 | –10 |
| Total comprehensive income for the period/year | 2,716 | 2,482 | 6,507 | 4,909 |
| Total comprehensive income for the period/year | ||||
| attributable to: | ||||
| Parent company shareholders | 2,549 | 2,482 | 5,685 | 4,909 |
| Non-controlling interests | 167 | – | 823 | – |
| 2,716 | 2,482 | 6,507 | 4,909 | |
| Profit from property management before tax, SEKm 1) | 742 | 482 | 2,653 | 1,780 |
| Profit from property management before tax, | ||||
| attributable to parent company shareholders, SEKm 1) | 650 | 482 | 2,265 | 1,780 |
| Profit from property management before tax per ordinary share, SEK 2) | 3.39 | 2.64 | 11.89 | 9.71 |
| Profit after tax per ordinary share, SEK 2) | 14.05 | 14.99 | 30.38 | 28.98 |
| 1) Including profit from property management from Balder's participation in associa ted companies. |
125 | 128 | 419 | 457 |
2) Reduced by dividend for the preference share for the period.
There is no dilutive effect as no potential shares arise.
| SEKm | 2016 31 Dec |
2015 31 Dec |
|---|---|---|
| Assets | ||
| Investment properties | 86,177 | 68,456 |
| Other fixed assets | 136 | 122 |
| Participations in associated companies | 3,362 | 2,276 |
| Other receivables | 1,357 | 1,497 |
| Cash and cash equivalents and financial investments | 1,592 | 1,025 |
| Total assets | 92,623 | 73,376 |
| Shareholders' equity and liabilities Shareholders' equity 1) |
33,479 | 25,052 |
| Deferred tax liability | 5,808 | 4,071 |
| Interest-bearing liabilities | 49,580 | 41,063 |
| Derivatives | 1,547 | 1,294 |
| Other liabilities | 2,209 | 1,896 |
| Total equity and liabilities | 92,623 | 73,376 |
| 1) Of which non-controlling interests. | 5,540 | 4,377 |
| SEKm | 2016 31 Dec |
2015 31 Dec |
|---|---|---|
| Opening equity | 25,052 | 14,261 |
| Total comprehensive income for the period/year | 6,507 | 4,909 |
| Dividend preference shares, approved and entered as a liability | –200 | –200 |
| Share issue, after issue costs | 1,780 | 1,705 |
| Transactions with non-controlling interests | –107 | – |
| Dividend to non-controlling interests | –107 | – |
| Non-controlling interests arising on the acquisition of subsidiary | – | 4,377 |
| Non-controlling interests arising on share issue in subsidiary | 554 | – |
| Closing equity | 33,479 | 25,052 |
| SEKm | 2016 Oct-Dec |
2015 Oct-Dec |
2016 Jan-Dec |
2015 Jan-Dec |
|---|---|---|---|---|
| Net operating income | 1,002 | 508 | 3,679 | 1,944 |
| Other income/costs | 10 | 1 | 17 | 2 |
| Management and administrative costs | –130 | –50 | –488 | –185 |
| Reversal of depreciation | 15 | 4 | 26 | 15 |
| Adjustment item | – | 4 | – | 0 |
| Net financial items paid | –258 | –154 | –939 | –586 |
| Taxes paid | –21 | 6 | –160 | 4 |
| Cash flow from operating activities before change in working capital | 618 | 319 | 2,135 | 1,193 |
| Change in operating receivables | 161 | –126 | 176 | –660 |
| Change in operating liabilities | 141 | –87 | 580 | 228 |
| Cash flow from operating activities | 920 | 107 | 2,891 | 762 |
| Acquisition of properties | –3,233 | –2 | –7,648 | –2,097 |
| Acquisition/Divestment of property, plant and equipment | –22 | 2 | –41 | –4 |
| Purchase of financial investments | –102 | –19 | –145 | –542 |
| Acquisition of shares in associated companies | –51 | –4 | –493 | –92 |
| Investment in existing properties and projects | –311 | –191 | –1,843 | –791 |
| Acquisition of subsidiary 1) | – | –1,676 | – | –4,219 |
| Transactions with non-controlling interests | – | – | –107 | – |
| Sale of properties | 650 | 3 | 1,651 | 1,606 |
| Sale of financial investments | – | 11 | 225 | 504 |
| Cash flow from investing activities | –3,069 | –1,875 | –8,401 | –5,635 |
| Share issue, after issue costs | – | 1,705 | 682 | 1,705 |
| Share issue in subsidiary, non-controlling interest's part of the share | ||||
| issue in Sato Oyj | – | – | 420 | – |
| Dividend paid for preference shares | –50 | –50 | –200 | –200 |
| Dividend paid to non-controlling interests | – | – | –107 | – |
| Loans raised | 3,262 | 615 | 10,783 | 5,209 |
| Amortisation/redemption of loans sold properties/changes in | ||||
| overdraft facilities | –1,403 | –446 | –5,401 | –1,421 |
| Cash flow from financing activities | 1,808 | 1,824 | 6,177 | 5,293 |
| Cash flow for the period/year | –341 | 55 | 667 | 421 |
| Cash and cash equivalents at the start of the period/year | 1,628 | 565 | 620 | 199 |
| Cash and cash equivalents at the end of the period/year | 1,287 | 620 | 1,287 | 620 |
| Unutilised credit facilities | 350 | 314 | 350 | 314 |
| Financial investments | 305 | 405 | 305 | 405 |
1) The item in 2015 represents a net outflow of cash for the acquisition of Sato Oyj.
| SEKm | 2016 Oct-Dec |
2015 Oct-Dec |
2016 Jan-Dec |
2015 Jan-Dec |
|---|---|---|---|---|
| Rental income | ||||
| Helsinki | 506 | – | 1,901 | – |
| Stockholm | 221 | 202 | 819 | 843 |
| Gothenburg | 280 | 241 | 1,030 | 938 |
| Öresund | 131 | 108 | 496 | 414 |
| East | 236 | 88 | 933 | 352 |
| North | 52 | 41 | 193 | 164 |
| Total | 1,427 | 680 | 5,373 | 2,711 |
| Net operating income | ||||
| Helsinki | 302 | – | 1,224 | – |
| Stockholm | 167 | 157 | 610 | 643 |
| Gothenburg | 223 | 171 | 743 | 650 |
| Öresund | 105 | 88 | 405 | 315 |
| East | 167 | 64 | 566 | 233 |
| North | 37 | 28 | 130 | 103 |
| Total | 1,002 | 508 | 3,679 | 1,944 |
The group's internal reporting of operations is divided into the above segments. Total net operating income corresponds with reported net operating income in the income statement. The difference between net operating income of SEK 3,679m (1,944) and profit before tax of SEK 7,643m (5,778) consists of changes in value of properties of SEK 4,932m (3,388), other income/costs SEK 17m (2), non-recurring items SEK 0m (9), management and administrative costs of SEK –488m (–185), participations in profits of associated companies of SEK 590m (831), net financial items of SEK –973m (–437) and changes in value of derivatives of SEK –114m (227).
| SEKm | 2016 31 Dec |
2015 31 Dec |
|---|---|---|
| Investment properties | ||
| Helsinki | 24,393 | 19,595 |
| Stockholm | 15,797 | 13,550 |
| Gothenburg | 17,053 | 12,887 |
| Öresund | 10,368 | 6,581 |
| East | 11,021 | 9,085 |
| North | 3,086 | 2,178 |
| Total carrying amount excluding project | 81,718 | 63,876 |
| Project | 4,459 | 4,581 |
| Total carrying amount including project | 86,177 | 68,456 |
The carrying amounts of properties has during the year changed by investments, aquisitions, divestments and unrealised changes in value, with SEK 4,798m in Helsinki region, SEK 2,247m in the Stockholm region, SEK 4,166m in the Gothenburg region, SEK 3,787m in the Öresund region, SEK 908m in the North region and by SEK 1,936m in the East region. The group's projects has decreased by SEK 122m. Sato's property portfolio is divided between the regions Helsinki and East. The real estate holdings in Norway is classified in the North region.
| 2016 Oct-Dec |
2015 Oct-Dec |
2016 Jan-Dec |
2015 Jan-Dec |
|
|---|---|---|---|---|
| Share-related, ordinary shares 1 ) |
||||
| Average number of shares, thousands | 176,965 | 163,825 | 173,598 | 162,753 |
| Profit after tax, SEK | 14.05 | 14.99 | 30.38 | 28.98 |
| Profit after tax excluding unrealised changes in value, SEK |
2.68 | 3.01 | 9.37 | 10.00 |
| Profit from property management before tax, SEK | 3.39 | 2.64 | 11.89 | 9.71 |
| Net operating income, SEK | 4.62 | 3.10 | 17.02 | 11.94 |
| Outstanding number of shares, thousands | 180,000 | 172,397 | 180,000 | 172,397 |
| Shareholders' equity, SEK | 157.63 | 128.03 | 157.63 | 128.03 |
| Long-term net asset value (EPRA NAV), SEK | 198.49 | 159.14 | 198.49 | 159.14 |
| Share price on the closing date, SEK | 184.10 | 208.70 | 184.10 | 208.70 |
| Property-related | ||||
| Rental value full-year, SEK/sq.m. | 1,583 | 1,508 | 1,583 | 1,508 |
| Rental income full-year, SEK/sq.m. | 1,507 | 1,455 | 1,507 | 1,455 |
| Economic occupancy rate, % | 95 | 96 | 95 | 96 |
| Surplus ratio, % | 70 | 75 | 68 | 72 |
| Carrying amount, SEK/sq.m. | 21,473 | 18,622 | 21,473 | 18,622 |
| Number of properties | 1,220 | 1,177 | 1,220 | 1,177 |
| Lettable area, sq.m. thousands | 3,806 | 3,430 | 3,806 | 3,430 |
| Profit from property management before tax, | ||||
| attributable to parent company shareholders, SEKm | 650 | 482 | 2,265 | 1,780 |
| Financial | ||||
| Return on equity, ordinary share, % | 14.4 | 20.8 | 20.9 | 28.2 |
| Return on total assets, % | 6.9 | 7.3 | 9.9 | 10.5 |
| Interest coverage ratio, times | 3.8 | 5.6 | 3.7 | 5.1 |
| Equity/assets ratio, % | 38.3 | 37.8 | 38.3 | 37.8 |
| Debt/equity ratio, times | 1.3 | 1.4 | 1.3 | 1.4 |
| Net debt to assets, % | 50.0 | 51.6 | 50.0 | 51.6 |
| 2016 Oct-Dec |
2015 Oct-Dec |
2016 Jan-Dec |
2015 Jan-Dec |
|
|---|---|---|---|---|
| Share-related, ordinary shares 1) Shareholders' equity, SEK |
139.23 | 103.24 | 139.23 | 103.24 |
| Financial | ||||
| Return on equity, ordinary share, % | 16.8 | 25.1 | 24.6 | 32.3 |
| Return on total assets, % | 7.2 | 7.7 | 10.4 | 10.9 |
| Equity/assets ratio, % | 36.1 | 34.1 | 36.1 | 34.1 |
| Debt/equity ratio, times | 1.5 | 1.6 | 1.5 | 1.6 |
| Net debt to assets, % | 51.8 | 54.6 | 51.8 | 54.6 |
1) There is no dilutive effect as no potential shares arise.
| SEKm | 2016 Oct-Dec |
2015 Oct-Dec |
2016 Jan-Dec |
2015 Jan-Dec |
|---|---|---|---|---|
| Net sales | 66 | 45 | 209 | 147 |
| Administrative expenses | –63 | –51 | –224 | –167 |
| Operating profit | 3 | –6 | –14 | –20 |
| Profit from financial items | ||||
| Dividends from subsidiaries | – | – | 1,430 | 800 |
| Other net financial items | 135 | 136 | 579 | 492 |
| Changes in value of derivatives | 299 | 185 | –151 | 199 |
| Profit before appropriations and taxes | 437 | 316 | 1,843 | 1,470 |
| Appropriations | ||||
| Group contributions paid | –568 | –340 | –568 | –340 |
| Profit before tax | –131 | –24 | 1,275 | 1,130 |
| Deferred tax | 31 | 9 | 36 | –69 |
| Net profit for the period/year 1) | –101 | –16 | 1,311 | 1,061 |
1) The parent company has no items reported in other comprehensive income and therefore total comprehensive income for the period/year is equal with net profit for the period/year.
| SEKm | 2016 31 Dec |
2015 31 Dec |
|---|---|---|
| Assets | ||
| Property, plant and equipment | 25 | 20 |
| Financial non-current assets | 5,087 | 3,537 |
| Receivables from group companies | 24,629 | 21,676 |
| Current receivables | 15 | 10 |
| Cash and cash equivalents and financial investments | 1,144 | 394 |
| Total assets | 30,900 | 25,637 |
| Shareholders' equity and liabilities | ||
| Shareholders' equity | 11,953 | 9,063 |
| Interest-bearing liabilities | 13,170 | 10,968 |
| Liabilities to group companies | 4,440 | 4,507 |
| Derivatives | 888 | 737 |
| Other liabilities | 449 | 363 |
| Total equity and liabilities | 30,900 | 25,637 |
Balder's shares are listed on Nasdaq Stockholm, Large Cap segment. Balder has two listed classes of shares, an ordinary Class B share and a preference share, which pays a dividend of SEK 5 per quarter. The company's market capitalisation as of 31 December amounted to SEK 36,371m (39,099).
The principal owner in Fastighets AB Balder is Erik Selin Fastigheter AB, which owns 34.5 % (35.9) of the capital and 48.2 % (49.5) of the votes. Foreign ownership amounts to approximately 20 % (22) of outstanding ordinary shares.
At the end of the period, approximately 14,000 shareholders (9,300) held ordinary shares. During the period, 90.2 million shares were traded (67.7) which corresponds to an average of about 357,000 shares per trading day (270,000). The annual turnover rate amounted to 52 % (42). The price of the ordinary share was SEK 184.10 (208.70) on 31 December, corresponding to a decrease of 11.8 % since year-end.
At the end of the period, approximately 9,300 shareholders (8,700) held preference shares. During the year approximately 3.3 million shares were traded (3.3), which corresponds to an average of about 13,000 shares per trading day (13,000). The annual turnover rate amounted to 33 % (33). On 31 December, the share price of the preference share was SEK 323.30 (312.00), corresponding to a rise of 3.6 % since year-end and a total return of 10.0 % since year-end.
During September, Balder carried out a directed new issue of 3,000,633 ordinary shares, which brought in SEK 681m after issue costs. For existing shareholders, the new issue meant a dilutive effect of 1.7 % of the capital. During December Balder carried out a set off issue of 4,602,515 ordinary shares, which brought in SEK 1,099m after issue costs. For existing shareholders, the new issue meant a dilutive effect of 2.6 % of the capital. After the issues and as of 31 December, the share capital in Balder amounted to SEK 190,000,000 distributed among 190,000,000 shares. Each share has a quota value of SEK 1.00, where of 11,229,432 shares are of Class A, 168,770,568 of Class B and 10,000,000 preference shares. The total number of outstanding shares amounts to 190,000,000. Each Class A share carries one vote and each Class B share and preference share carries one tenth of one vote.
| EPRA key ratios | 2016 Jan-Dec |
2015 Jan-Dec |
|---|---|---|
| EPRA NAV (Long-term net asset value), SEKm | 35,728 | 27,436 |
| EPRA NAV, SEK per share | 198.49 | 159.14 |
| EPRA Vacancy rate | 5 | 4 |
Share price/Net asset value
Share price/Net asset value (EPRA NAV) per ordinary share Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1 2005 2006 2007 2008 2009 2010 20112012 20132014 Q3Q4Q1Q2Q3 20152016
| Total | 11,229,432 | 168,770,568 | 10,000,000 | 190,000,000 | 100 | 100 |
|---|---|---|---|---|---|---|
| Other | 4,212 | 51,854,076 | 9,918,719 | 61,777,007 | 32.5 | 21.2 |
| CBNY Norges Bank | – | 2,614,143 | – | 2,614,143 | 1.4 | 0.9 |
| Lannebo fonder | – | 2,950,000 | – | 2,950,000 | 1.6 | 1.0 |
| SEB Investment Management | – | 3,304,313 | – | 3,304,313 | 1.7 | 1.1 |
| Anders Hedin Invest AB | – | 5,000,000 | – | 5,000,000 | 2.6 | 1.7 |
| Handelsbanken Fonder AB | – | 6,343,346 | – | 6,343,346 | 3.3 | 2.2 |
| JPM Chase | – | 6,671,346 | 80,781 | 6,752,127 | 3.6 | 2.3 |
| Länsförsäkringar fondförvaltning AB | – | 7,571,909 | – | 7,571,909 | 4.0 | 2.6 |
| Swedbank Robur fonder | – | 11,707,995 | – | 11,707,995 | 6.2 | 4.0 |
| Arvid Svensson Invest AB | 2,915,892 | 13,542,540 | – | 16,458,432 | 8.7 | 14.7 |
| Erik Selin via company | 8,309,328 | 57,210,900 | 500 | 65,520,728 | 34.5 | 48.2 |
| Owner | A ordinary shares | B ordinary shares | Preference shares | Total number of shares |
Capital, % | Votes, % |
| Final day of trading incl. right to payment of dividend | 6 April 2017 |
|---|---|
| Record day for payment of dividend | 10 April 2017 |
| Expected day of payment from Euroclear | 13 April 2017 |
| Final day of trading incl. right to payment of dividend | 6 July 2017 |
| Record day for payment of dividend | 10 July 2017 |
| Expected day of payment from Euroclear | 13 July 2017 |
| Final day of trading incl. right to payment of dividend | 6 October 2017 |
| Record day for payment of dividend | 10 October 2017 |
| Expected day of payment from Euroclear | 13 October 2017 |
The company presents a number of financial metrics in the interim report that are not defined according to IFRS (so-called Alternative Performance Measures according to ESMA's guidelines). These performance measures provide valuable supplementary information to investors, the company's management and other stakeholders since they facilitate effective evaluation and analysis of the company's financial position and performance. These alternative performance measures are not always comparable with measures used by other companies and shall therefore be considered as a complement to measures defined according to IFRS. Fastighets AB Balder will apply these alternative performance measures consistently over time. The key ratios are alternative performance measures according to ESMA's guidelines unless otherwise stated. A description follows below of how Fastighets AB Balder's key ratio's are defined and calculated.
Profit after tax reduced by preference share dividend for the period in relation to average equity after deduction of the preference capital. The values were converted to a full-year basis in the interim accounts without taking account of seasonal variations that normally arise in the operations with the exception of changes in value.
Profit before tax with addition of net financial items in relation to average balance sheet total. The values were converted to a full-year basis in the interim accounts without taking account of seasonal variations that normally arise in the operations with the exception of changes in value.
Profit before tax with reversal of changes in value and other income/costs. Reversal of changes in value and tax as regards participation in profits of associated companies also takes place.
Interest-bearing liabilities less cash and cash equivalents and financial investments in relation to total assets.
Profit before tax with reversal of net financial items, changes in value and changes in value and tax as regards participation in profits of associated companies, in relation to net financial items.
Interest-bearing liabilities in relation to shareholders' equity.
Shareholders' equity including non-controlling interests in relation to the balance sheet total at the end of the year.
Shareholders' equity in relation to the number of outstanding ordinary shares at the end of the year after deduction of the preference capital.
Shareholders equity' per preference share is equivalent to the average subscription price of the preference share of SEK 287.70 per share.
Profit from property management reduced by preference share dividend for the period divided by the average number of outstanding ordinary shares.
The number of outstanding shares at the start of the period, adjusted by the number of shares issued during the period weighted by the number of days that the shares have been outstanding in relation to the total number of days during the year.
Equity per ordinary share with reversal of interest rate derivatives and deferred tax according to balance sheet.
Profit attributable to the average number of ordinary shares after consideration of the preference share dividend for the period.
Estimated net operating income on an annual basis in relation to the fair value of the properties at the end of the year.
Rental income less property costs.
Contracted rent for leases which are running at the end of the period in relation to rental value.
Classified according to the principal use of the property. The break-down is made into office, retail, residential and other properties. Other properties include hotel, educational, care, industrial/warehouse and mixed-use properties. The property category is determined by what the largest part of the property is used for.
This item includes direct property costs, such as operating expenses, utility expenses, maintenance, ground rent and property tax.
Contracted rent and estimated market rent for vacant premises.
Net operating income in relation to rental income.
1) The key ratio is operational and is not considered to be a alternative key ratio according to ESMA's guidelines.
2) When calculating profit from property management before tax attributable to parent company shareholders, the profit from property manage ment is also reduced with the non-controlling interests' share.
The information in this report is such that Fastighets AB Balder (publ) is obliged to disclose according to the Swedish Securities Markets Act and/or the Swedish Financial Instruments Trading Act. This information has been published at 2.00 p.m. on February 22, 2017.
For additional information, please contact CEO Erik Selin, telephone +46 706 074 790 or CFO Magnus Björndahl, telephone +46 735 582 929.
Overall information about the company's operations, board of directors and management, financial reporting and press releases, may be found on Balder's website, www.balder.se.
Annual report 2016 Week 14, 2017 Annual General meeting 11 May 2017 Interim report Jan-Mar 2017 11 May 2017 Interim report Jan-June 2017 22 August 2017 Interim report Jan-Sep 2017 2 November 2017 Year-end report 2017 22 February 2018
Fastighets AB Balder (publ) www.balder.se · [email protected] · Org.nr 556525-6905
| Head office | Parkgatan 49 · Box 53 121 · 411 39 Gothenburg · Tel +46 31-10 95 70 · Fax +46 31-10 95 99 |
|---|---|
| Regional offices | |
| Stockholm | Drottninggatan 108 · 113 60 Stockholm · Tel +46 8-73 53 770 |
| Vårby Allé 14 · 143 40 Vårby · Tel +46 8-73 53 770 | |
| Gothenburg | Wetterlinsgatan 11G · 521 34 Falköping · Tel +46 515-72 14 80 |
| Timmervägen 9A · 541 64 Skövde · Tel +46 500-47 88 50 | |
| Parkgatan 49 · Box 53 121 · 411 39 Gothenburg · Tel +46 31-10 95 70 | |
| Öresund | Esplanaden 15 · 265 34 Åstorp · Tel +46 42-569 40 |
| Gustav Adolfs Torg 8 · 252 25 Helsingborg · Tel +46 42-17 21 30 | |
| Kalendegatan 26 · 211 35 Malmö · Tel +46 40-600 96 50 | |
| East | Hospitalsgatan 11 · 602 27 Norrköping · Tel +46 11-15 88 90 |
| Kapellgatan 29 A · 732 45 Arboga · Tel +46 589-194 50 | |
| Rönnbergagatan 10 · 723 46 Västerås · Tel +46 21-14 90 98 | |
| Storgatan 51 · 573 32 Tranås · Tel +46 140-654 80 | |
| Tunadalsgatan 6 · 731 31 Köping · Tel +46 221-377 80 | |
| North | Forskarvägen 27 · 804 23 Gävle · Tel +46 26-54 55 80 |
| Sandbäcksgatan 5 · 653 40 Karlstad · Tel +46 54-14 81 80 | |
| Tallvägen 8 · 854 66 Sundsvall · Tel +46 60-55 47 10 | |
| Letting | Tel +46 20-151 151 |
| Customer service Tel +46 774-49 49 49 |
This report is a translation of the Swedish Interim Report January-December 2016. In the event of any disparities between this report and the Swedish version, the latter will have priority.
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