Interim / Quarterly Report • Jul 16, 2020
Interim / Quarterly Report
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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 149.3 billion (129.2) as of 30 June 2020. The Balder share is listed on Nasdaq Stockholm, Large Cap.
Comparisons stated in parenthesis refer to the corresponding period of the previous year.
| 2020 Jan-June |
2019 Jan-June |
2019 Jan-Dec |
2018 Jan-Dec |
2017 Jan-Dec |
2016 Jan-Dec |
2015 Jan-Dec |
2014 Jan-Dec |
2013 Jan-Dec |
|
|---|---|---|---|---|---|---|---|---|---|
| Rental income, SEKm | 4,049 | 3,663 | 7,609 | 6,714 | 5,915 | 5,373 | 2,711 | 2,525 | 1,884 |
| Profit from property management, SEKm1) | 1,993 | 1,911 | 4,023 | 3,304 | 2,804 | 2,265 | 1,780 | 1,275 | 854 |
| Changes in value of investment properties, SEKm | 587 | 1,603 | 9,577 | 8,007 | 5,336 | 4,932 | 3,388 | 3,050 | 854 |
| Changes in value of derivatives, SEKm | –221 | –287 | –180 | –34 | 144 | –114 | 227 | –624 | 433 |
| Profit after tax, SEKm 1) | 1,874 | 2,621 | 8,958 | 9,308 | 7,118 | 5,474 | 4,916 | 3,128 | 1,738 |
| Investment properties, SEKm | 146,181 | 126,770 | 141,392 116,542 | 98,360 | 86,177 | 68,456 | 37,382 | 27,532 | |
| Development properties, SEKm | 3,125 | 2,408 | 2,344 | 1,598 | – | – | – | – | – |
| Data per share | |||||||||
| Average number of shares thousands | 180 000 | 180,000 | 180,000 180,000 180,000 173,598 162,753 161,786 159,537 | ||||||
| Profit after tax, SEK | 10.41 | 14.56 | 49.77 | 51.71 | 38.71 | 30.38 | 28.98 | 18.10 | 10.11 |
| Profit from property management, SEK | 11.07 | 10.61 | 22.35 | 18.35 | 14.74 | 11.89 | 9.71 | 6.64 | 4.57 |
| Outstanding number of shares thousands | 180 000 | 180,000 | 180,000 180,000 180,000 180,000 172,397 162,397 159,537 | ||||||
| Shareholders' equity, SEK | 281.86 | 236.99 | 272.28 | 223.03 | 173.86 | 139.23 | 103.24 | 70.10 | 52.14 |
| Long-term net asset value (NAV), SEK | 354.98 | 297.32 | 341.70 | 277.60 | 218.10 | 180.09 | 134.35 | 86.33 | 60.50 |
| Share price on the closing date, SEK | 355.10 | 311.00 | 433.20 | 252.00 | 219.40 | 184.10 | 208.70 | 110.25 | 66.00 |
1) Attributable to parent company shareholders.
Profit from property management attributable to the parent company's shareholders increased by 4 % to SEK 11.07 per share (10.61). The profit was weighed by lower revenue from hotel properties, lower earnings from Collector and rent rebates due to Covid-19. Smaller changes in value meant that profit after tax decreased to SEK 10.41 per share (14.56).
The investment rate declined for us during the first half of 2020 and especially during Q2. The decrease was due to low activity generally in the transaction market but also due to the fact that we decided to adopt a more wait and see approach in relation to new investments. Access to financing has remained favourable and in particular from the banks, which through all of this turbulent period have provided support both in monetary terms and at a personal level, even during the most difficult days.
The profit from our excellent group of associated companies decreased compared to the year-earlier period due to lower earnings from Collector and smaller changes in value. However, I expect a good performance over time, and this group of companies brings us a lot of knowledge and joy .
During part of Q2, two of my closest co-workers and faithful old servants were deprived of their liberty. The incident did not affect Balder from a harsh economic perspective but for me personally and for many other colleagues it has been extremely tough. From my point of view, it has been much worse than e.g. a financial crisis and other difficult things that I have experienced. Of course, it has been toughest of all for those directly affected and their families.
However, the support I received externally, from friends, acquaintances, business partners etc. was absolutely overwhelming, and something I will always remember with the utmost gratitude.
With this interim report, Balder has been established in its present form for 15 years. The net asset value and subscription/share price development has been as follows as of 30 June each year:
| Share price (2005 refers | ||
|---|---|---|
| Year | Net asset value | to subscription price) |
| 2005 | 6.59 | 7.075 |
| 2006 | 11.08 | 13.33 |
| 2007 | 16.46 | 17.50 |
| 2008 | 23.44 | 11.15 |
| 2009 | 22.39 | 9.00 |
| 2010 | 26.57 | 16.47 |
| 2011 | 36.04 | 31.70 |
| 2012 | 44.85 | 31.30 |
| 2013 | 54.41 | 48.50 |
| 2014 | 70.82 | 90.50 |
| 2015 | 106.16 | 127.90 |
| 2016 | 169.39 | 212.90 |
| 2017 | 215.59 | 204.00 |
| 2018 | 246.51 | 233.80 |
| 2019 2019 |
297.32 | 311.00 |
| 2020 | 354.98 | 355.10 |
Average increase per year: net asset value: 30 % share price: 30 %
In the middle of the pandemic and during this very unusual period, we have also passed Balders 15th anniversary. I look back on the past 15 years and on all we have achieved together in the Balder family with great happiness and enthusiasm. Today, we have more than 750 employees and we are operating in many places in several countries. I look forward with great curiosity to Balder's continued journey, and despite the difficult times right now, we are trying to see over the brow of the next hill and to continue developing the business. The future is always uncertain, but it is bright and filled with opportunities.
To date, we have made the assessment that the best total return for Balder's shareholders is achieved by reinvestment of the profits generated. The goal is also the same going forward and I am optimistic about the possibility of being able to continue finding investments over time that will generate a reasonably good return.
Erik Selin Chief Executive Officer
Spring 2020 has been marked by the ongoing pandemic. Balder has taken a number of measures to handle the current situation. The future development is uncertain and it is important that the operations are flexible and prepared for any new challenges that arise.
The day-to-day operations have been adapted to the prevailing circumstances and the employees are contributing in many different ways and are performing many other duties than normal. Employees with the means to do so have also been given the opportunity to work from home. The company follows the advice and guidelines issued by the Public Health Agency of Sweden and the government. The Management team is holding daily meetings and the employees are receiving continual information about the situation.
Approximately 60 % of the property portfolio consists of residential properties. Of the total property portfolio, approximately 8 % consists of hotels, a sector which is experiencing difficulties.
Balder has a continual dialogue with the tenants and aims to the greatest extent possible, to support those with liquidity problems as a consequence of the pandemic. A number of inquiries have been received regarding rent reductions in the commercial properties and these cases are handled to arrive at the best possible solution and support the tenants. In several cases, agreements have been reached on a changeover to monthly payments and deferrals of rent payments.
Balder is continuing the development of the property portfolio through new production and projects under construction are advancing according to plan.
Balder also carries out a number of activities in order to support tenants in different ways and society as a whole. In several localities, during spring the company provided premises with places for study for young people attending upper secondary school. In some of these places, the company also offered lunch to the young people.
At Östra Hospital in Gothenburg, where many of the Västra Götaland region's Covid-19 patients are being treated, Balder is making 90 parking spaces available, where healthcare staff can park free of charge. Balder also participated in an initiative during May where several large companies took turns in paying for the lunch of healthcare workers.
Together with Lidl, Balder also distributed food bags to tenants over the age of 70 in one of the company's residential areas. During the month of May, group training was also arranged in the courtyard in several residential areas, where tenants could participate in the courtyard or from their balconies. During the summer, a variety of activities are also organized for children and young people in several places.
In order to support commercial tenants, Balder continues to gather offers from these tenants and helps to market their businesses. The residential tenants have received information about where they can turn to for help, or to get involved themselves to help.
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 | 2020 30 June |
2020 31 March |
2019 31 Dec |
2019 30 Sep |
2019 30 June |
2019 31 March |
2018 31 Dec |
2018 30 Sep |
2018 30 June |
2018 31 March |
2017 31 Dec |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Rental income | 8,240 | 8,100 | 8,000 | 7,830 | 7,435 | 7,175 | 7,000 | 6,800 | 6,665 | 6,430 | 6,240 |
| Property costs | –2,120 | –2,090 | –2,080 | –2,060 | –1,940 | –1,875 | –1,885 | –1,845 | –1,815 | –1,760 | –1,720 |
| Net operating income | 6,120 | 6,010 | 5,920 | 5,770 | 5,495 | 5,300 | 5,115 | 4,955 | 4,850 | 4,670 | 4,520 |
| Management and | |||||||||||
| administrative costs | –690 | –680 | –670 | –640 | –640 | –620 | –595 | –590 | –590 | –565 | –550 |
| Profit from property | |||||||||||
| management from | |||||||||||
| associated companies | 735 | 760 | 785 | 775 | 750 | 775 | 735 | 660 | 650 | 650 | 640 |
| Operating profit | 6,165 | 6,090 | 6,035 | 5,905 | 5,605 | 5,455 | 5,255 | 5,025 | 4,910 | 4,755 | 4,610 |
| Net financial items, including | |||||||||||
| ground rent | –1,420 | –1,420 | –1,330 | –1,330 | –1,270 | –1,250 | –1,125 | –1,100 | –1,120 | –1,120 | –1,060 |
| Of which non-controlling | |||||||||||
| interests | –670 | –670 | –675 | –655 | –620 | –580 | –565 | –555 | –555 | –550 | –525 |
| Profit from | |||||||||||
| property management 1) | 4,075 | 4,000 | 4,030 | 3,920 | 3,715 | 3,625 | 3,565 | 3,370 | 3,235 | 3,085 | 3,025 |
| Tax 2) | –825 | –870 | –875 | –855 | –775 | –765 | –750 | –730 | –700 | –665 | –650 |
| Profit after tax | 3,250 | 3,130 | 3,155 | 3,065 | 2,940 | 2,860 | 2,815 | 2,640 | 2,535 | 2,420 | 2,375 |
| Profit from property | |||||||||||
| management per share, SEK | 22.64 | 22.22 | 22.39 | 21.78 | 20.64 | 20.14 | 19.81 | 18.72 | 17.97 | 17.14 | 16.81 |
1) Attributable to parent company shareholders.
2) Mainly refers to deferred tax, which does not affect the cash flow.
In the current earning capacity an average exchange rate has been used for translation of the foreign subsidiaries' income statement items.
Profit from property management for the period amounted to SEK 2,347m (2,159), of which effect of changes in exchange rates amounted to SEK 13m (28). Profit from property management attributable to parent company shareholders increased by 4 % and amounted to SEK 1,993m (1,911), which corresponds to SEK 11.07 per share (10,61). Profit from property management includes SEK 287m (401) in respect of associated companies.
Net profit after tax for the period amounted to SEK 2,195m (2,966). Net profit after tax for the period attributable to parent company shareholders amounted to SEK 1,874m (2,621), corresponding to SEK 10.41 per share (14.56). Profit before tax was affected by changes in value in respect of investment properties of SEK 587m (1,603), changes in value in respect of development properties SEK 59m (–), changes in value of interest rate derivatives of SEK –221m (–287) and profit from participations in associated companies of SEK 257m (462).
Rental income increased by 11 % to SEK 4,049m (3,663), of which the effect of changes in exchange rates was SEK 27m (68). The increase was primarily due to acquisitions, new leases and completed projects for own management. The leasing portfolio was estimated to have a rental value on 30 June of SEK 8,626m (7,721). The average rental level for the entire real estate portfolio amounted to SEK 1,929/sq.m. (1,838) excluding project properties.
The like for like rental income has increased with 1.0 % (2.9) after adjustments for currency changes.
Rental income shows a considerable diversification of risks as regards tenants, sectors and locations. The economic occupancy rate amounted to 96 % (96) on 30 June. The total rental value of unlet areas at the end of the period amounted to SEK 386m (286).
Property costs amounted to SEK –987m (–969) during the period, of which the effect of changes in exchange rates was SEK –7m (–20).
Net operating income increased by 14 % to SEK 3,062m (2,694), which implies a surplus ratio of 76 % (74).
Operating costs normally vary with the seasons. The first and fourth quarters have higher costs than the other quarters, while the third quarter usually has the lowest cost level.
Balder carried out an individual internal valuation on 30 June of the entire real estate portfolio, see page 9. Unrealised changes in value during the period amounted to SEK 575m (1,589). Realised changes in value amounted to SEK 12m (14). The average yield requirement as of 30 June amounted to 4.5 % (4.8), which is unchanged compared to
year-end. The change in value during the period is attributable to improved net operating income.
For the second time, a profit is reported from Balder's investments in development properties. Two projects have been recognised as income during the second quarter.
Profit from sales of development properties is recognised when the property is taken into possession by the purchaser. Apart from the cost, selling and marketing expenses are included, which are expensed on an ongoing basis, these amounted to SEK –7m (–) during the period.
The sales result for the period totaled SEK 59m (–), corresponding to an operating profit of 14 %, and includes the sale of the development property Triliten (Biskopsgården 7:5, 7:7, 7:8), tenant-owned apartments in Gothenburg and the first Bovieran (senior housing) in Denmark. Triliten is a densification project that gave an operating profit of 22 % and Bovieran Denmark gave an operating profit of 6 %.
Management and administrative costs amounted to SEK –357m (–324) during the period, of which the effect of changes in exchange rates was SEK –3m (–7).
Balder owns property managing and project developing associated companies, see note 14 in Balder's Annual Report for 2019, and 44.1 % in Collector AB (publ) which is listed. Brinova Fastigheter AB (publ) is also listed and Balder's share amounts to 23.2 %.
During the period, Balder has subscribed for its share of the new issue in Collector AB of SEK 453m, in addition 50 % of the shares in Ängsladan Fastighetsförvaltning i Lund AB were acquired.
Profit from participations in associated companies amounted to SEK 257m (462) and Balder's participation in the associated companies profit from property management amounted to SEK 287m (401).
Profit before tax was impacted by SEK 45m (173) as a result of unrealised changes in value in respect of properties and interest rate derivatives. The tax expense for the period amounted to SEK –75m (–112).
Net financial items amounted to SEK –613m (–606), of which the effect of changes in exchange rates was SEK –3m (–14).
Changes in value of interest rate derivatives amounted to SEK –221m (–287). The negative change in value of derivatives during the period is due to the fact that the long interest rates have fallen during the period. Unrealised changes in value do not affect the cash flow.
The average interest rate was 1.6 % (1.6) on the closing date and 1.6 % (1.7) for the period.
The group's total tax amounted to SEK –546m (–570), of which effect of changes in exchange rates amounted to SEK –4m (–9). Current tax for the period amounts to SEK –196m (–116), mainly attributable to SATO Oyj and Balder Denmark. Current tax attributable to parent company shareholders amounted to SEK –138m (–83).
Deffered tax expense for the period amounted to SEK –350m (–454).
Tax was calculated based on the applicable tax rate in each country. In Sweden, tax was calculated at 21.4 % based on current taxable income. Deferred tax liabilities and tax receivables were calculated at the lower tax rate of 20.6 %, which applies starting from 2021.
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 11,645m (9,389).
Profit from property management for the second quarter of 2020 increased by 9 % and amounted to SEK 1,211m (1,113). Profit from property management attributable to parent company shareholders for the second quarter of 2020 increased by 2 % and amounted to SEK 1,028m (1,009) which corresponds to SEK 5.71 per share (5.61). Profit from property management included SEK 161m (206) in respect of associated companies. Rental income amounted to SEK 2,026m (1,866) and property costs amounted to SEK –453m (–460), which meant that net operating income increased by 12 % to SEK 1,573m (1,406), of which the effect of changes in exchange rates was SEK 10m (25). The surplus ratio amounted to 78 % (75).
Net profit after tax for the period amounted to SEK 968m (1,576). Profit after tax attributable to parent company shareholders amounted to SEK 811m (1,433) corresponding to SEK 4.51 per share (7.96). The result was affected by changes in value in respect of properties of SEK 327m (895), changes in value of development properties of SEK 59m (–), changes in value of interest rate derivatives of SEK –50m (–187) and profit from participations in associated companies of SEK 158m (284). The Group's total tax amounted to SEK –576m (–323). Current tax expense for the period amounted to SEK –112m (–59), which is primarily attributable to SATO Oyj and Balder Denmark. Deferred tax expense for the period amounted to SEK –464m (–264). The deferred tax expense has been affected by positive exchange rate differences that have arisen from the translation of the parent company's Euro bonds during the quarter. In the Group these are used for hedging of foreign net investments and are transferred to "Other comprehensive income".
Cash flow from operating activities before changes in working capital amounted to SEK 1,831m (1,367). Investing activities have burdened the cash flow by SEK –5,763m (–7,837).
During the period, acquisition of investment properties of SEK –2,586m (–4,064), investments in existing properties and projects of SEK –2,955m (–3,690), investments in property, plant and equipment, financial investments, associated companies and transactions with non-controlling interests SEK –1,042m (–563), dividend to non-controlling interests SEK 0m (–135), and amortisation of lease liability SEK –15m (–) adds up to SEK –6,599m (–8,452).
These have been financed through cash flow from operating activities of SEK 1,195m (1,486), by divestments of investment properties of SEK 311m (290), development properties SEK 428m (–), financial investments of SEK 62m (31), dividend from associated companies SEK 19m (144), sale of shares in associated companies SEK 0m (15), shareholder contributions from non-controlling interests of SEK 16m (–) and net borrowings of SEK 6,770m (6,613), which adds up to SEK 8,801m (8,580).
Total cash flow for the period amounted to SEK 2,202m (128). In addition to unutilised credit facilities of SEK 8,692m (8,723), the Group's cash and cash equivalents, financial investments and unutilised overdraft facilities amounted to SEK 5,439m (1,974) on 30 June.
The number of employees on 30 June amounted to 799 persons (732), of whom 346 were women (303). Balder is organised into seven regions. 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 191m (169) during the period.
Net profit after tax amounted to SEK 909m (364). Dividends from subsidiaries amounted to SEK 975m (800), other net financial items amounted to SEK 138m (–245) of which exchange rates differences amounted to SEK –6m (–466), changes in value of interest rate derivatives amounted to SEK –221m (–287)
Reported exchange differences mainly refer to the translation of the company's euro bonds, which from a group perspective are used for hedging of foreign net investments.
On 30 June Balder owned 1,338 investment properties (1,275) with a lettable area of 4,451 thousand sq.m. (4,181) and a value of SEK 146,181m (126,770). Balder's total rental value excluding projects amounted to SEK 8,587m (7,684).
In addition to investment properties Balder owns development properties with a value of SEK 3,125m (2,408). The value of the total property portfolio amounted to SEK 149,306m (129,179).
Balder's commercial properties are mainly located in the central parts of the major 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.
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, care, industrial and mixed-use properties.
Balder's investment properties are reported on the basis of internal valuations. The properties in Sweden, Denmark, Finland, Norway, Germany and United Kingdom are valued using the cash flow based method.
In Finland and Russia, in addition to the cash flow based method, valuation at acquisition cost are used. Properties under construction and project properties for own management are valued at market value reduced by estimated building expenditure and project risk, which usually results in valuation at cost.
On 30 June, Balder's average yield requirement amounted to 4.5 % (4.8) excluding project properties for own management, which is unchanged compared to year-end.
In order to quality-assure its internal valuations, Balder regularly allows parts of its portfolio to be externally valued and obtain second opinions on internal valuations. Historically, deviations between external and internal valuations have been insignificant.
The overall carrying amount of Balder's investment properties amounted to SEK 146,181m (126,770) on 30 June. The unrealised change in value during the period amounted to SEK 575m (1,589) and is attributable to improved net operating income.
During the period, a total of SEK 4,390m (7,308) was invested relating to investment properties, of which SEK 2,586m (4,428) related to acquisitions and SEK 1,804m (2,880) related to investments in existing properties and projects for own management. During the period condominiums and land have been divested at a sales value of SEK 311m (290). Profit from the sales amounted to SEK 12m (14).
On 30 June, Balder has project properties for own management amounting to SEK 4.3 billion (6.1). Projects with ongoing construction are included with SEK 3.7 billion (5.6) and projects where construction has not yet started amounts to SEK 0.6 billion (0.5). The ongoing construction work has an estimated total investment of approximately SEK 6.4 billion (8.1), which means that SEK 2.7 billion (2.5) remains to be invested. Most of the ongoing projects relate to residential projects. The projects comprise about 1,900 apartments and mainly refers to about 800 apartments in Copenhagen and about 700 apartments in Helsinki. The investments relate to owner apartments for rental use.
On 30 June, Balder has development properties amounting to SEK 3.1 billion (2.4). Projects with ongoing construction are included with SEK 1.4 billion (1.4) and projects where construction has not begun amounts to SEK 1.7 billion (1.0). The projects with ongoing construction has an estimated total investment of approximately SEK 2.3 billion (2.3), which means that SEK 0.9 billion (0.9) remains to invest. The majority of the development projects in progress refer to tenantowner's apartments and primarily involve approx. 500 tenantowner's apartments in Sweden.
A development property is a property that is held for refinement with the intention of being divested. These properties are continually recognised at cost and profit/loss is recognised when each property is completed, sold and handed over to the buyer.
As a result of Balder's investments in development properties, two sales results are reported in the second quarter. The densification project Triliten (Biskopsgården 7:5, 7:7, 7:8), tenant-owned apartments in Gothenburg has been recognised as income. Also the first Bovieran (senior housing) in Frederikssund in Denmark was recognised as income during the second quarter. The cost of the projects amounted to SEK –370m and the profit from the sales amounted to SEK 59m, including the marketing and sales costs that are expensed on an ongoing basis, these amounted to SEK –7m during the period.
| 2019 | ||||
|---|---|---|---|---|
| SEKm | Number 1) | SEKm | Number 1) | |
| 141,392 | 1,298 | 116,542 | 1,185 | |
| 1,804 | 2,880 | |||
| 2,586 | 16 | 4,428 | 36 | |
| –299 | – | –276 | – | |
| 575 | 1,589 | |||
| 123 | 1,607 | |||
| – | 24 | – | 54 | |
| 146,181 | 1,338 | 126,770 | 1,275 | |
| 2,344 | 1,598 | |||
| 1,151 | 810 | |||
| –370 | – | |||
| 3,125 | 2,408 | |||
| 149,306 | 129,179 | |||
| 2020 |
1) Number of investment properties.
| Quarter | Number | Name of property | Property category | Lettable area, sq.m. | |
|---|---|---|---|---|---|
| Acquisitions | |||||
| One | 1 | Inom Vallgraven 4:5 | Gothenburg | Office | 3,585 |
| One | 1 | Palmen 3 | Linköping | Hotel | 11,086 |
| One | 1 | 92-52-18-6 (Tikkurilantie 123) | Vanda, Finland | Retail | 13,102 |
| One | 1 | 285-46-167-3 (Ristikalliontie 41) | Kotka, Finland | Retail | 3,100 |
| One | 1 | 286-3-3039-5 (Taitajantie 4) | Kouvola, Finland | Retail | 3,800 |
| One | 1 | 405-56-1-14 (Myllymäenkatu 6) | Lappeenranta, Finland | Retail | 4,400 |
| One | 1 | 106-18-1731-20 (Veikkarinkatu 7) | Hyvinkää, Finland | Retail | 2,645 |
| One | 1 | 109-11-33-2 (Tampereentie 169) | Hämeenlinna, Finland | Retail | 5,840 |
| One | 1 | 167-8-837-1 (Voimatie 16) | Joensuu, Finland | Retail | 8,282 |
| One | 1 | 297-24-20-2 (Leväsentie 33) | Kuopio, Finland | Retail | 7,770 |
| One | 1 | 398-23-111-4 (Ajokatu 261) | Lahti, Finland | Retail | 7,947 |
| One | 1 | 837-122-506-12 (Hataanpään Valtatie 42) | Tampere, Finland | Retail | 12,412 |
| One | 1 | 837-122-506-3 (Puistokuja 32) | Tampere, Finland | Retail | 5,865 |
| Two | 1 | Inom Vallgraven 8:14 | Gothenburg | Office | 2,924 |
| Two | 1 | Inom Vallgraven 20:8 | Gothenburg | Office | 1,107 |
| Two | 1 | Gnr: 81, bnr 92, snr. 1-54 (Dønskiveien 6) | Bærum, Norway | Other | 2,614 |
| Total | 16 | 96,479 |
Balder owns 50 % of a number of property companies where Balder handles the management and administration, for further information, see page 23-25 in Balder's Annual Report for 2019. Balder's 50 %-owned associated companies are shown in the table below together with Balder's share of 49 % (49) in Sinoma Fastighets AB and 56 % (56) in Serena Properties AB where Balder has a joint control, for company website, see serenaproperties.se.
Apart from the 50 %-owned associated companies, Balder owns 44.1 % (44.1) in Collector AB (publ), 33 % (33) of Tornet Bostadsproduktion AB, 23.2 % (25.5) of Brinova Fastigheter AB (publ), 49 % (49) in Sjaelsö Management ApS, 20 % (20) in SHH Bostad AB and 25 % (25) in Rosengård Fastighets AB. For more information about these associated companies, see each companys website: collector.se, tornet.se, brinova.se, sjaelsoemanagement.dk, shhbostad.se and rosengardfastigheter.se.
| Number of properties 3) |
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 | 81 | 209,186 | 313 | 1,496 | 294 | 94 | 5,514 | 45 |
| Gothenburg | 40 | 154,228 | 176 | 1,143 | 163 | 92 | 2,243 | 18 |
| Öresund | 22 | 65,005 | 101 | 1,552 | 89 | 88 | 1,571 | 13 |
| East | 26 | 100,091 | 135 | 1,345 | 130 | 96 | 1,900 | 15 |
| Total excluding projects | 169 | 528,510 | 725 | 1,371 | 675 | 93 | 11,227 | 91 |
| Projects for own management | 1 | 1 | 1,142 | 9 | ||||
| Total real estate portfolio | 169 | 528,510 | 725 | 1,371 | 676 | 93 | 12,369 | 100 |
| Distributed by property category | ||||||||
| Residential | 41 | 73,555 | 143 | 1,945 | 140 | 98 | 2,994 | 24 |
| Office | 29 | 99,933 | 147 | 1,475 | 132 | 90 | 2,250 | 18 |
| Retail | 60 | 240,517 | 291 | 1,209 | 276 | 95 | 3,853 | 31 |
| Other | 39 | 114,504 | 143 | 1,251 | 127 | 89 | 2,130 | 17 |
| Total excluding projects | 169 | 528,510 | 725 | 1,371 | 675 | 93 | 11,227 | 91 |
| Projects for own management | 1 | 1 | 1,142 | 9 | ||||
| Total real estate portfolio | 169 | 528,510 | 725 | 1,371 | 676 | 93 | 12,369 | 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, care, industrial and mixed-use properties.
2) Refers to Balder's holding in Trenum AB, Fastighets AB Centur, Tulia AB, Sinoma Fastighets AB and Serena Properties AB.
3) Refers to the entire associated companies' portfolio.
| SEKm | 2020 30 June |
2019 30 June |
2019 31 Dec |
|---|---|---|---|
| Assets | |||
| Properties | 12,369 | 10,932 | 12,004 |
| Other assets | 291 | 72 | 243 |
| Cash and cash equivalents | 161 | 245 | 204 |
| Total assets | 12,821 | 11,249 | 12,450 |
| Shareholders' equity and liabilities | |||
| Equity/interest-bearing shareholder loan | 6,004 | 5,063 | 5,635 |
| Deferred tax liability | 701 | 558 | 657 |
| Interest-bearing liabilities | 5,620 | 5,333 | 5,671 |
| Other liabilities | 496 | 295 | 488 |
| Total equity and liabilities | 12,821 | 11,249 | 12,450 |
Carrying amount distributed by region, total real estate portfolio, %
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 6.8 years (7.5). Balder's 10 largest leases represent 4.5 % (4.7) of total rental income and the average lease term amounts to 11.6 years (12.7).
No individual lease accounts for more than 0.7 % (0.7) of Balder's total rental income and no individual customer accounts for more than 3.6 % (3.8) of total rental income.
| Maturity date | Number of leases |
Proportion, % | Contracted rent, SEKm |
Proportion, % |
|---|---|---|---|---|
| 2020 | 717 | 21 | 162 | 2 |
| 2021 | 1,047 | 30 | 405 | 5 |
| 2022 | 638 | 19 | 417 | 5 |
| 2023 | 493 | 14 | 341 | 4 |
| 2024– | 550 | 16 | 1,908 | 23 |
| Total | 3,445 | 100 | 3,232 | 39 |
| Residential 1) | 40,535 | 4,919 | 60 | |
| Car park 1) | 5,312 | 20 | 0 | |
| Garage 1) | 5,199 | 69 | 1 | |
| Total | 54,491 | 8,240 | 100 |
| as of 30/06/2020 | |
|---|---|
| • I.A. Hedin Bil AB |
Rental income
Balder has assets in Sweden, Denmark, Finland, Russia, Norway, Germany and United Kingdom which means that the Group is exposed to currency risks. Balder therefore has a diversified financing structure with bonds issued under a domestic MTN programme and a EMTN programme. In addition to bonds, bank financing in several currencies and a commercial paper programme in Euro and Swedish kronor are used. The single largest source of funding is bonds issued on the European bond market in Euro. In addition to these financing sources, Balder also has issued Hybrid capital which has a maturity of 60 years and is considered as 50 % equity by the credit rating agencies.
| Financial key ratios | 2020 30 June |
2019 30 June |
2019 31 Dec |
|---|---|---|---|
| Interest-bearing liabilities excl. Hybrid capital, SEKm | 84,084 | 71,308 | 77,590 |
| Hybrid capital, SEKm | 3,668 | 3,695 | 3,652 |
| Available liquidity including confirmed loan commitments, SEKm | 14,131 | 10,697 | 11,925 |
| Average fixed credit term, years | 5.7 | 5.5 | 5.8 |
| Average interest rate refixing period, years | 3.2 | 3.0 | 3.1 |
| Net debt to total assets (financial covenant 1) < 65), % | 48.3 | 50.5 | 48.4 |
| Interest coverage ratio (financial covenant 1) > 1.8), times | 5.0 | 4.8 | 5.2 |
| Secured debt/Total assets (financial covenant 1) < 45), % | 15.4 | 19.1 | 16.2 |
| Net debt/EBITDA, times | 13.5 | 12.9 | 13.0 |
| Credit rating S&P | BBB Stable outlook |
BBB Stable outlook |
BBB Stable outlook |
| Calculation of net debt Interest-bearing liabilities excl. Hybrid capital, SEKm |
84,084 | 71,308 | 77,590 |
| Hybrid capital (50 % is treated as equity by rating agencies), SEKm | 1,834 | 1,848 | 1,826 |
| Cash and cash equivalents and financial investments, SEKm | –5,089 | –1,624 | –2,902 |
| Net debt | 80,829 | 71,532 | 76,514 |
1) Financial covenants refers to obligations that Balder has to its financiers in the form of financial key ratios.
| Financial targets | Target | Outcome | |
|---|---|---|---|
| Equity/assets ratio, % | min. | 40.0 | 37.4 |
| Net debt to total assets, % | max. | 50.0 | 48.3 |
| Interest coverage ratio, times | min. | 2.0 | 5.0 |
| Year | SEKm | Proportion, % |
|---|---|---|
| 2020 | 6,231 | 7 |
| 2021 | 7,069 | 8 |
| 2022 | 12,013 | 14 |
| 2023 | 12,009 | 14 |
| 2024 | 11,393 | 13 |
| 2025 | 8,737 | 10 |
| 2026 | 8,052 | 9 |
| 2027 | 5,461 | 6 |
| 2028 | 3,290 | 4 |
| 2029 | 963 | 1 |
| 2030- | 12,533 | 14 |
| Total | 87,752 | 100 |
| Year | SEKm | Interest, % | Proportion, % |
|---|---|---|---|
| 2020 | 31,332 | 0.9 | 36 |
| 2021 | 5,653 | 2.2 | 6 |
| 2022 | 6,305 | 1.4 | 7 |
| 2023 | 9,860 | 2.4 | 11 |
| 2024 | 4,306 | 1.6 | 5 |
| 2025 | 7,520 | 2.2 | 9 |
| 2026 | 7,591 | 2.3 | 9 |
| 2027 | 6,397 | 1.1 | 7 |
| 2028 | 3,144 | 1.3 | 4 |
| 2029 | 2,913 | 1.6 | 3 |
| 2030- | 2,731 | 2.4 | 3 |
| Total | 87,752 | 1.6 | 100 |
Fastighets AB Balder's CFO Magnus Björndahl, who in August 2020 will become 63 years, has together with Balder's CEO Erik Selin agreed to terminate his employment during the summer 2020.
Otherwise, no events of significant importance for Fastighets AB Balder's position have occurred after the end of the reporting period.
Balder receives fees from associated companies and Erik Selin Fastigheter AB for property and company management services. These fees amounted to SEK 40m (37) during the period and are reported in management and administrative costs. All transactions have been priced on market terms.
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 2019, on pages 45-48. Otherwise, no significant changes has been noted.
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 principles follow those reported in the Annual Report 2019.
New and changed standards and principles that came into force as of January 1, 2020 or later, is not considered to have any material impact on the Group's financial reports.
This interim report has not been subject to review by the company's auditors.
The Board of Directors and the CEO declare that the undersigned interim report provides a true and fair overview of the parent company's and the group's operations, financial position and performance as well as describing material risks and uncertainties facing the parent company and other companies in the group.
Gothenburg 16 July 2020
Christina Rogestam Chairman of the board
Fredrik Svensson Board member
Sten Dunér Board member
Anders Wennergren Board member
Erik Selin Board member and CEO
| SEKm | 2020 April-June |
2019 April-June |
2020 Jan-June |
2019 Jan-June |
2019/2020 July-June |
2019 Jan-Dec |
|---|---|---|---|---|---|---|
| Rental income | 2,026 | 1,866 | 4,049 | 3,663 | 7,995 | 7,609 |
| Property costs | –453 | –460 | –987 | –969 | –1,984 | –1,966 |
| Net operating income | 1,573 | 1,406 | 3,062 | 2,694 | 6,011 | 5,643 |
| Management and administrative costs | –178 | –168 | –357 | –324 | –697 | –664 |
| Participations in the profits of associated companies | 158 | 284 | 257 | 462 | 671 | 876 |
| – of which profit from property management | 161 | 206 | 287 | 401 | 673 | 787 |
| – of which changes in value | 43 | 141 | 45 | 173 | 169 | 297 |
| – of which tax | –46 | –63 | –75 | –112 | –171 | –209 |
| Other income/costs | –23 | –3 | –32 | –5 | –19 | 7 |
| Net financial items | –322 | –328 | –613 | –606 | –1,176 | –1,170 |
| – of which cost of leases/ground rent | –16 | –16 | –33 | –31 | –64 | –63 |
| Profit including changes in value and tax in associated companies | 1,208 | 1,192 | 2,317 | 2,220 | 4,790 | 4,693 |
| – of which Profit from property management | 1,211 | 1,113 | 2,347 | 2,159 | 4,792 | 4,604 |
| Changes in value | ||||||
| Changes in value investment properties, realised | 9 | 23 | 12 | 14 | 12 | 14 |
| Changes in value investment properties, unrealised | 318 | 872 | 575 | 1,589 | 8,548 | 9,562 |
| Income sale development properties | 428 | – | 428 | – | 815 | 387 |
| Costs sale development properties | –370 | – | –370 | – | –661 | –292 |
| Changes in value derivatives | –50 | –187 | –221 | –287 | –115 | –180 |
| Changes in value total | 336 | 707 | 424 | 1,316 | 8,600 | 9,492 |
| Profit before tax | 1,544 | 1,899 | 2,741 | 3,536 | 13,390 | 14,185 |
| Income tax | –576 | –323 | –546 | –570 | –2,635 | –2,659 |
| Net profit for the period/year | 968 | 1,576 | 2,195 | 2,966 | 10,755 | 11,526 |
| Net profit for the period/year attributable to: | ||||||
| Parent company shareholders | 811 | 1,433 | 1,874 | 2,621 | 8,212 | 8,958 |
| Non-controlling interests | 156 | 142 | 321 | 345 | 2,544 | 2,568 |
| 2,966 | ||||||
| Other comprehensive income – items that may be | 968 | 1,576 | 2,195 | 10,755 | 11,526 | |
| subsequently reclassified to profit or loss | ||||||
| Translation difference relating to foreign operations (net after | ||||||
| hedge accounting) | –563 | 47 | –78 | 146 | –216 | 8 |
| Cash flow hedges after tax | –14 | –54 | –33 | –117 | 29 | –55 |
| Participation in other comprehensive income of associated companies | –20 | 3 | –11 | 8 | –16 | 3 |
| 370 | 1,571 | 2,074 | 3,003 | 10,553 | 11,482 | |
| Total comprehensive income for the period/year | ||||||
| Total comprehensive income for the period/year attributable to: | ||||||
| Parent company shareholders | 794 | 1,357 | 1,729 | 2,511 | 8,083 | 8,865 |
| Non-controlling interests | –423 | 214 | 344 | 492 | 2,470 | 2,617 |
| 370 | 1,571 | 2,074 | 3,003 | 10,553 | 11,482 | |
| Profit from property management | 1,211 | 1,113 | 2,347 | 2,159 | 4,792 | 4,604 |
| Of which non-controlling interests part of Profit from property | ||||||
| management | –183 | –104 | –354 | –249 | –687 | –581 |
| Profit from property management attributable to parent com | ||||||
| pany shareholders | 1,028 | 1,009 | 1,993 | 1,911 | 4,105 | 4,023 |
| Profit from property management per share, SEK | 5.71 | 5.61 | 11.07 | 10.61 | 22.81 | 22.35 |
| Profit after tax per share, SEK | 4.51 | 7.96 | 10.41 | 14.56 | 45.62 | 49.77 |
Thers is no dilutive effect as no potential shares arise.
| SEKm | 2020 30 June |
2019 30 June |
2019 31 Dec |
|---|---|---|---|
| Assets | |||
| Investment properties | 146,181 | 126,770 | 141,392 |
| Development properties | 3,125 | 2,408 | 2,344 |
| Lease contract; Right-of-use assets | 1,514 | 1,538 | 1,541 |
| Other fixed assets | 163 | 154 | 166 |
| Participations in associated companies | 8,080 | 6,431 | 7,018 |
| Other receivables | 3,329 | 2,699 | 2,566 |
| Cash and cash equivalents and financial investments | 5,089 | 1,624 | 2,902 |
| Total assets | 167,481 | 141,625 | 157,928 |
| Shareholders' equity and liabilities Shareholders' equity 1) |
60,811 | 50,276 | 58,725 |
| Deferred tax liability | 11,645 | 9,389 | 11,285 |
| Interest-bearing liabilities | 87,752 | 75,003 | 81,242 |
| –of which Hybrid capital 2) | 3,668 | 3,695 | 3,652 |
| Derivatives | 1,516 | 1,472 | 1,210 |
| Lease contract | 1,510 | 1,538 | 1,543 |
| Other liabilities | 4,247 | 3,947 | 3,923 |
| Total equity and liabilities | 167,481 | 141,625 | 157,928 |
| 1) Of which non-controlling interests 2) 50 % of Hybrid capital is treated as equity by the rating agencies and thus decreases interest bearing liabilities when calculating the debt/equity ratio and net debt to total assets ratio and |
10,076 | 7,619 | 9,714 |
| increases equity when calculating the equity/assets ratio. | 1,834 | 1,848 | 1,826 |
| SEKm | 2020 30 June |
2019 30 June |
2019 31 Dec |
|---|---|---|---|
| Opening equity | 58,725 | 47,408 | 47,408 |
| Total comprehensive income for the period/year | 2,074 | 3,003 | 11,482 |
| Transactions with non-controlling interests | –3 | –3 | –35 |
| Dividend to non-controlling interests | – | –135 | –137 |
| Non-controlling interests arising on the acquisition of subsidiary | – | 3 | 8 |
| Shareholder contributions from non-controlling interests | 16 | – | – |
| Closing equity | 60,811 | 50,276 | 58,725 |
| SEKm | 2020 April-June |
2019 April-June |
2020 Jan-June |
2019 Jan-June |
2019 Jan-Dec |
|---|---|---|---|---|---|
| Net operating income | 1,573 | 1,406 | 3,062 | 2,694 | 5,643 |
| Other income/costs | –23 | –3 | –32 | –5 | 7 |
| Management and administrative costs | –178 | –168 | –357 | –324 | –664 |
| Reversal of depreciation | 10 | 12 | 20 | 21 | 42 |
| Net financial items paid | –355 | –488 | –640 | –825 | –1,419 |
| Taxes paid | –105 | –92 | –222 | –193 | –321 |
| Cash flow from operating activities before change in working capital | 922 | 667 | 1,831 | 1,367 | 3,288 |
| Change in operating receivables | –113 | 43 | –710 | –255 | –262 |
| Change in operating liabilities | 38 | 256 | 74 | 374 | 183 |
| Cash flow from operating activities | 847 | 966 | 1,195 | 1,486 | 3,209 |
| Acquisition of investment properties | –879 | –1,939 | –2,586 | –4,064 | –7,972 |
| Acquisition/Divestment of property, plant and equipment | –1 | –27 | –18 | –51 | –85 |
| Purchase of financial investments | –11 | – | –45 | –50 | –594 |
| Acquisition of shares in associated companies/Capital contribution to | |||||
| associated companies/Loans to associated companies | –160 | –271 | –977 | –459 | –601 |
| Investment in existing properties and projects | –1,436 | –2,210 | –2,955 | –3,690 | –8,133 |
| Transactions with non-controlling interests | –1 | – | –3 | –3 | –35 |
| Sale of investment properties | 206 | 208 | 311 | 290 | 1,050 |
| Sale of development properties | 428 | – | 428 | – | 387 |
| Sale of financial investments | – | 2 | 62 | 31 | 60 |
| Sale of shares in associated companies | – | 15 | – | 15 | 15 |
| Dividend paid from associated companies | 19 | 144 | 19 | 144 | 42 |
| Cash flow from investing activities | –4,078 | –5,763 | –7,837 | –15,867 | |
| Dividend paid to non-controlling interests | – | –135 | – | –135 | –137 |
| Amortisation of lease liability | –13 | – | –15 | – | –26 |
| Shareholder contributions from non-controlling interests | – | – | 16 | – | – |
| Loans raised | 5,009 | 8,915 | 11,183 | 13,576 | 25,169 |
| Amortisation/redemption of loans sold properties/changes in overdraft | |||||
| facilities | –2,432 | –6,056 | –4,413 | –6,963 | –11,527 |
| Cash flow from financing activities | 2,564 | 2,724 | 6,770 | 6,479 | 13,479 |
| Cash flow for the period/year | 1,576 | –388 | 2,202 | 128 | 821 |
| Cash and cash equivalents at the start of the period/year | 2,004 | 1,073 | 1,379 | 558 | 558 |
| Cash and cash equivalents at the end of the period/year | 3,581 | 686 | 3,581 | 686 | 1,379 |
| Cash and cash equivalents | 3,581 | 686 | 3,581 | 686 | 1,379 |
| Unutilised overdraft facilities | 350 | 350 | 350 | 350 | 350 |
| Unutilised credit facilities | 8,692 | 8,723 | 8,692 | 8,723 | 8,673 |
| Financial investments | 1,508 | 938 | 1,508 | 938 | 1,523 |
| Available liquidity including confirmed credit commitments | 14,131 | 10,697 | 14,131 | 10,697 | 11,925 |
| SEKm | 2020 April-June |
2019 April-June |
2020 Jan-June |
2019 Jan-June |
2019/2020 July-June |
2019 Jan-Dec |
|---|---|---|---|---|---|---|
| Rental income | ||||||
| Helsinki | 642 | 608 | 1,272 | 1,197 | 2,508 | 2,433 |
| Stockholm | 324 | 304 | 654 | 600 | 1,288 | 1,234 |
| Gothenburg | 387 | 343 | 760 | 666 | 1,520 | 1,426 |
| Copenhagen | 160 | 135 | 329 | 272 | 622 | 566 |
| South | 139 | 147 | 284 | 282 | 591 | 589 |
| East | 308 | 258 | 616 | 512 | 1,187 | 1,083 |
| North | 66 | 71 | 134 | 133 | 278 | 277 |
| Total | 2,026 | 1,866 | 4,049 | 3,663 | 7,995 | 7,609 |
| Net operating income | ||||||
| Helsinki | 491 | 443 | 932 | 845 | 1,834 | 1,747 |
| Stockholm | 267 | 248 | 526 | 476 | 1,023 | 973 |
| Gothenburg | 313 | 272 | 590 | 510 | 1,179 | 1,099 |
| Copenhagen | 115 | 105 | 253 | 214 | 476 | 436 |
| South | 110 | 118 | 218 | 225 | 465 | 471 |
| East | 228 | 168 | 447 | 333 | 832 | 717 |
| North | 49 | 52 | 95 | 92 | 203 | 199 |
| Total | 1,573 | 1,406 | 3,062 | 2,694 | 6,011 | 5,643 |
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 3,062m (2,694) and profit before tax of SEK 2,741m (3,536) consists of changes in value of investment properties of SEK 587m (1,603), changes in value development properties SEK 59m (–), other income/costs SEK –32m (–5), management and administrative costs of SEK –357m (–324), participations in profits of associated companies of SEK 257m (462), net financial items of SEK –613m (–606) and changes in value of derivatives of SEK –221m (–287).
| SEKm | 2020 30 June |
2019 30 June |
2019 31 Dec |
|---|---|---|---|
| Real estate portfolio | |||
| Helsinki | 41,667 | 31,827 | 38,132 |
| Stockholm | 26,810 | 24,344 | 26,331 |
| Gothenburg | 30,222 | 25,308 | 28,966 |
| Copenhagen | 14,181 | 11,468 | 13,582 |
| South | 10,214 | 9,709 | 10,196 |
| East | 13,877 | 13,388 | 14,072 |
| North | 4,914 | 4,579 | 4,792 |
| Total excluding projects | 141,885 | 120,624 | 136,071 |
| Projects for own management | 4,297 | 6,146 | 5,320 |
| Total investment properties | 146,181 | 126,770 | 141,392 |
| Development properties | 3,125 | 2,408 | 2,344 |
| Total real estate portfolio | 149,306 | 129,179 | 143,736 |
The carrying amounts of properties have during the period changed by investments, acquisitions, divestments, unrealised changes in value and currency changes, with SEK 3,535m in Helsinki region, SEK 479m in the Stockholm region, SEK 1,256m in the Gothenburg region, SEK 599m in Copenhagen region, SEK 18m in South region, SEK –195m in the East region and SEK 121m in the North region. The Group's projects for own management has decreased by SEK –1,023m and the Group's development properties has increased by SEK 781m. SATO's property portfolio is divided between the regions Helsinki and East. The real estate holdings in Norway is classified in the North region, the real estate holdings in Denmark in the Copenhagen region and the properties in Germany and United Kingdom in the South region.
| 2020 April-June |
2019 April-June |
2020 Jan-June |
2019 Jan-June |
2019/2020 July-June |
2019 Jan-Dec |
|
|---|---|---|---|---|---|---|
| Share-related | ||||||
| Average number of shares, thousands | 180,000 | 180,000 | 180,000 | 180,000 | 180,000 | 180,000 |
| Profit after tax, SEK | 4.51 | 7.96 | 10.41 | 14.56 | 45.62 | 49.77 |
| Profit after tax excluding unrealised changes in value, SEK |
3.17 | 4.67 | 8.80 | 8.88 | 18.66 | 18.75 |
| Profit from property management, SEK | 5.71 | 5.61 | 11.07 | 10.61 | 22.81 | 22.35 |
| Net operating income, SEK | 7.15 | 6.40 | 13.95 | 12.24 | 27.44 | 25.74 |
| Outstanding number of shares, thousands | 180,000 | 180,000 | 180,000 | 180,000 | 180,000 | 180,000 |
| Shareholders' equity, SEK | 281.86 | 236.99 | 281.86 | 236.99 | 281.86 | 272.28 |
| Long-term net asset value (NAV), SEK | 354.98 | 297.32 | 354.98 | 297.32 | 354.98 | 341.70 |
| Share price on the closing date, SEK | 355.10 | 311.00 | 355.10 | 311.00 | 355.10 | 433.20 |
| Property-related | ||||||
| Rental value full-year, SEK/sq.m. | 1,929 | 1,838 | 1,929 | 1,838 | 1,929 | 1,921 |
| Rental income full-year, SEK/sq.m. | 1,842 | 1,770 | 1,842 | 1,770 | 1,842 | 1,850 |
| Economic occupancy rate, % | 96 | 96 | 96 | 96 | 96 | 96 |
| Vacancy rate, % | 4 | 4 | 4 | 4 | 4 | 4 |
| Surplus ratio, % | 78 | 75 | 76 | 74 | 75 | 74 |
| Carrying amount, SEK/sq.m. | 31,877 | 28,854 | 31,877 | 28,854 | 31,877 | 31,613 |
| Number of properties | 1,338 | 1,275 | 1,338 | 1,275 | 1,338 | 1,298 |
| Lettable area, sq.m. thousands | 4,451 | 4,181 | 4,451 | 4,181 | 4,451 | 4,304 |
| Profit from property management, attributable | ||||||
| to parent company shareholders, SEKm | 1,028 | 1,009 | 1,993 | 1,911 | 4,105 | 4,023 |
| Financial | ||||||
| Return on equity, % | 4.7 | 9.3 | 6.8 | 10.2 | 17.6 | 20.1 |
| Return on total assets, % | 3.8 | 4.6 | 3.8 | 5.0 | 9.4 | 10.7 |
| Interest coverage ratio, times | 5.0 | 4.6 | 5.0 | 4.8 | 5.3 | 5.2 |
| Equity/assets ratio, % | 37.4 | 36.8 | 37.4 | 36.8 | 37.4 | 38.3 |
| Debt/equity ratio, times | 1.4 | 1.5 | 1.4 | 1.5 | 1.4 | 1.4 |
| Net debt to total assets, % | 48.3 | 50.5 | 48.3 | 50.5 | 48.3 | 48.4 |
| Net debt/EBITDA, times | 13.1 | 12.4 | 13.5 | 12.9 | 13.3 | 13.0 |
| SEKm | 2020 April-June |
2019 April-June |
2020 Jan-June |
2019 Jan-June |
2019/2020 July-June |
2019 Jan-Dec |
|---|---|---|---|---|---|---|
| Net sales | 93 | 82 | 191 | 169 | 383 | 361 |
| Administrative costs | –92 | –91 | –191 | –178 | –376 | –363 |
| Operating profit | 1 | –9 | –0 | –10 | 7 | –2 |
| Profit from financial items | ||||||
| Dividends from subsidiaries | 975 | 800 | 975 | 800 | 975 | 800 |
| Other net financial items | 1,341 | –115 | 138 | –245 | 577 | 194 |
| – of which exchange rate differences | 1,283 | –213 | –6 | –466 | 209 | –251 |
| Changes in value of derivatives | –50 | –187 | –221 | –287 | –115 | –180 |
| Profit before appropriations and taxes | 2,267 | 489 | 891 | 259 | 1,445 | 812 |
| Appropriations | ||||||
| Group contributions | – | – | – | – | 229 | 229 |
| Profit before tax | 2,267 | 489 | 891 | 259 | 1,674 | 1,042 |
| Income tax | –266 | 57 | 17 | 105 | –104 | –16 |
| Net profit for the period/year 1) | 2,001 | 546 | 909 | 364 | 1,570 | 1,025 |
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 | 2020 30 June |
2019 30 June |
2019 31 Dec |
|---|---|---|---|
| Assets | |||
| Property, plant and equipment | 24 | 22 | 23 |
| Financial non-current assets | 13,866 | 11,728 | 13,347 |
| Receivables from Group companies | 55,949 | 45,058 | 52,646 |
| Current receivables | 293 | 205 | 206 |
| Cash and cash equivalents and financial investments | 2,806 | 1,176 | 1,995 |
| Total assets | 72,938 | 58,190 | 68,217 |
| Shareholders' equity and liabilities | |||
| Shareholders' equity | 13,161 | 11,592 | 12,253 |
| Interest-bearing liabilities | 48,506 | 38,417 | 43,862 |
| –of which Hybrid capital | 3,668 | 3,695 | 3,652 |
| Liabilities to Group companies | 9,988 | 7,100 | 10,966 |
| Derivatives | 847 | 733 | 626 |
| Other liabilities | 435 | 349 | 511 |
| Total equity and liabilities | 72,938 | 58,190 | 68,217 |
Balder's share is listed on Nasdaq Stockholm, Large Cap segment. The company's market capitalisation as of 30 June amounted to SEK 63,918m (55,980).
The principal owner in Fastighets AB Balder is Erik Selin Fastigheter AB, which owns 36.4 % (36.4) of the capital and 49.9 % (49.9) of the votes. Foreign ownership amounts to approximately 28 % (26) of outstanding shares.
At the end of the period, approximately 24,000 shareholders (14,000) held shares. During the period, approximately 78.0 million shares were traded (34.7) which corresponds to an average of about 635,000 shares per trading day (302,000). The annual turnover rate amounted to 87 % (39). The price of the share was SEK 355.10 (311.00) on 30 June, corresponding to a decrease of 18 % since year-end.
On 30 June, the share capital in Balder amounted to SEK 180,000,000 distributed among 180,000,000 shares. Each share has a quota value of SEK 1, where of 11,229,432 shares are of Class A and 168,770,568 of Class B. The total number of outstanding shares as of 30 June amounts to 180,000,000. Each Class A share carries one vote and each Class B share carries one tenth of one vote.
The Annual General Meeting (AGM) of Fastighets AB Balder on 11 May 2020, resolved on the following matters, among others:
The AGM adopted the annual accounts for 2019 and resolved that no dividend shall be declared.
The AGM discharged the Board and the CEO from liabilityand reelected the Board members Christina Rogestam, Erik Selin, Fredrik Svensson, Sten Dunér and Anders Wennergren according to the nomination committee's proposal. Christina Rogestam was selected as Chairman.
The meeting resolved to authorise the Board, during the period until the next Annual General Meeting, on one or more occasion, to be able to decide on new issue of shares of Class B corresponding to not more than 20,000,000 shares.
The AGM further resolved during the period until the next Annual General Meeting, to authorise the Board on one or more occasion to decide on acquisition of own shares of Class B but that the combined holdings of own shares in the company may not exceed 10 % of all shares in the company.
| Owner | A shares | B shares | Total number of shares |
Capital, % | Votes, % |
|---|---|---|---|---|---|
| Erik Selin via company | 8,309,328 | 57,210,900 | 65,520,228 | 36.4 | 49.9 |
| Arvid Svensson Invest AB | 2,915,892 | 13,542,540 | 16,458,432 | 9.1 | 15.2 |
| Swedbank Robur fonder | – | 8,120,537 | 8,120,537 | 4.5 | 2.9 |
| SEB Investment Management | – | 6,675,348 | 6,675,348 | 3.7 | 2.4 |
| Länsförsäkringar fondförvaltning AB | – | 6,054,238 | 6,054,238 | 3.4 | 2.2 |
| Handelsbanken fonder | – | 4,824,249 | 4,824,249 | 2.7 | 1.7 |
| AMF Försäkring och Fonder | – | 3,654,500 | 3,654,500 | 2.0 | 1.3 |
| Vanguard | – | 3,468,557 | 3,468,557 | 1.9 | 1.2 |
| Livförsäkringsbolaget Skandia | – | 2,043,966 | 2,043,966 | 1.1 | 0.7 |
| CBNY - Norges Bank | – | 1,974,828 | 1,974,828 | 1.1 | 0.7 |
| Other | 4,212 | 61,200,905 | 61,205,117 | 34.0 | 21.8 |
| Total | 11,229,432 | 168,770,568 | 180,000,000 | 100 | 100 |
Share price/Net asset value (NAV), % Share price/Prot from property management, times
Share price/Net asset value (NAV) Share price/Prot from property management
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 in relation to average equity. 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 and 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 and with the exception of changes in value.
Net debt in relation to total assets.
Profit from property management with addition of profit from sales of development properties with reversal of net financial items. In the interim financial statements, EBITDA were converted to a full-year basis, with the exception of profit from sale of development properties.
Profit including changes in value and tax in associated companies with reversal of changes in value and tax as regards participation in profits of associated companies. When calculating profit from property management before tax attributable to parent company shareholders, the profit from property management is also reduced with the noncontrolling interests' share.
Interest expenses in the period recalculated to annual value in relation to the average interest-bearing liabilities.
Interest-bearinging liabilities decreased by cash and cash equivalents, financial investments and 50 % of Hybrid capital which is treated as 50 % equity by the rating agencies.
A bond with a maturity of 60 years. The bond is reported as interest bearing liability but is treated as 50 % equity by the rating agencies.
Profit including changes in value and tax in associated companies with reversal of net financial items excluding ground rents and changes in value and tax as regards participation in profits of associated companies, in relation to net financial items excluding ground rents.
Interest-bearing liabilities decreased by 50 % of Hybrid capital in relation to shareholders' equity.
Shareholders' equity including non-controlling interests and 50 % of hybrid capital in relation to the balance sheet total at the end of the period.
Shareholders' equity in relation to the number of outstanding shares at the end of the period.
Profit from property management attributable to the parent company shareholders divided by the average number of outstanding 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 period.
Equity per share with reversal of interest rate derivatives and deferred tax according to balance sheet.
Profit attributable to the parent company shareholders in relation to average number of shares.
Estimated net operating income on an annual basis in relation to the fair value of the properties at the end of the period.
Rental income less property costs.
Contracted rent for leases which are running at the end of the period in relation to rental value.
Refers to properties constructed with the intention of being divested after completion.
Refers to both investment properties and development properties.
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 and property tax.
Refers to properties that are held with the objective of generating rental income or an increase in value or a combination of these.
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.
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 08.00 a.m. on July 16, 2020.
For additional information, please contact CEO Erik Selin, telephone +46 706 074 790 or acting CFO Jesper Mårtensson, telephone +46 709 666 555.
Overall information about the company's operations, board of directors and management, financial reporting and press releases, may be found on Balder's website, balder.se.
Interim report Jan-Sep 2020 5 November 2020 Year-end report 2020 11 February 2021
| Head office | Parkgatan 49 · Box 53 121 · 400 15 Gothenburg · Tel: +46 31-10 95 70 · Fax: +46 31-10 95 99 |
|---|---|
| Letting | Tel: +46 20-151 151 |
| Customer service Tel: +46 774-49 49 49 | |
| Region | |
| Gothenburg | Parkgatan 49 · Box 53 121 · 400 15 Gothenburg · Tel: +46 31-10 95 70 |
| Timmervägen 9 A · 541 64 Skövde · Tel: +46 500-47 88 50 | |
| Helsinki | Panuntie 4 · PO Box 401 · 00610 Helsinki · Tel: +358-201 34 4000 |
| North | Forskarvägen 27 · 804 23 Gävle · Tel: +46 26-54 55 80 |
| Sandbäcksgatan 5 · 653 40 Karlstad · Tel: +46 54-14 81 80 | |
| Affärsgatan 4 D · 862 31 Kvissleby · Tel: +46 60-52 45 50 | |
| Stockholm | Tulegatan 2A · 113 58 Stockholm · Tel: +46 8-735 37 70 |
| Vårby Allé 18 · 143 40 Vårby · Tel: +46 8-735 37 70 | |
| South | Kalendegatan 26 · 211 35 Malmö · Tel: +46 40-600 96 50 |
| Esplanaden 15 · 265 34 Åstorp · Tel: +46 42-569 40 | |
| Bryggaregatan 7 · 252 27 Helsingborg · Tel: +46 42-17 21 30 | |
| Copenhagen | Vesterbrogade 1 E, 5. sal · 1620 København V · Tel: +45-88 13 61 51 |
| East | Hospitalsgatan 11 · 602 27 Norrköping · Tel: +46 11-15 88 90 |
| Rönnbergagatan 10 · 723 46 Västerås · Tel: +46 21-10 98 90 | |
This report is a translation of the Swedish Interim Report January-June 2020. In the event of any disparities between this report and the Swedish version, the latter will have priority.
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