Quarterly Report • May 12, 2021
Quarterly Report
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JANUARY-MARCH 2021
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 160.3 billion (151.2) as of 31 March 2021. The Balder share is listed on Nasdaq Stockholm, Large Cap.
Comparisons stated in parenthesis refer to the corresponding period of the previous year.
Two development properties (–) were divested and recognised as income during the quarter. Sales profit amounted to SEK 29m (–) excluding the portfolio's ongoing selling and marketing expenses.
During the quarter Balder has taken possession of the real estate group Masmästaren with a property value of approximately SEK 5 billion.
| 2021 Jan-March |
2020 Jan-March |
2020 Jan-Dec |
2019 Jan-Dec |
2018 Jan-Dec |
2017 Jan-Dec |
2016 Jan-Dec |
2015 Jan-Dec |
2014 Jan-Dec |
|
|---|---|---|---|---|---|---|---|---|---|
| Rental income, SEKm | 2,118 | 2,023 | 8,134 | 7,609 | 6,714 | 5,915 | 5,373 | 2,711 | 2,525 |
| Profit from property management, SEKm1) | 1,088 | 965 | 4,244 | 4,023 | 3,304 | 2,804 | 2,265 | 1,780 | 1,275 |
| Changes in value of investment properties, SEKm | 1,513 | 260 | 3,453 | 9,577 | 8,007 | 5,336 | 4,932 | 3,388 | 3,050 |
| Changes in value of derivatives, SEKm | 299 | –172 | –141 | –180 | –34 | 144 | –114 | 227 | –624 |
| Profit after tax, SEKm1) | 2,665 | 1,063 | 6,641 | 8,958 | 9,308 | 7,118 | 5,474 | 4,916 | 3,128 |
| Investment properties, SEKm | 157,659 | 148,553 | 149,179 | 141,392 | 116,542 | 98,360 | 86,177 | 68,456 | 37,382 |
| Development properties, SEKm | 2,678 | 2,667 | 2,803 | 2,344 | 1,598 | – | – | – | – |
| Data per share | |||||||||
| Average number of shares, thousands | 186,500 | 180,000 | 180,515 | 180,000 | 180,000 | 180,000 | 173,598 | 162,753 | 161,786 |
| Profit after tax, SEK | 14.29 | 5.91 | 36.79 | 49.77 | 51.71 | 38.71 | 30.38 | 28.98 | 18.10 |
| Profit from property management, SEK | 5.83 | 5.36 | 23.51 | 22.35 | 18.35 | 14.74 | 11.89 | 9.71 | 6.64 |
| Outstanding number of shares, thousands | 186,500 | 180,000 | 186,500 | 180,000 | 180,000 | 180,000 | 180,000 | 172,397 | 162,397 |
| Shareholders' equity, SEK | 330.69 | 277.45 | 312.12 | 272.28 | 223.03 | 173.86 | 139.23 | 103.24 | 70.10 |
| Long-term net asset value (NAV), SEK | 405.27 | 348.35 | 387.38 | 341.70 | 277.60 | 218.10 | 180.09 | 134.35 | 86.33 |
| Share price on the closing date, SEK | 432.60 | 357.00 | 428.90 | 433.20 | 252.00 | 219.40 | 184.10 | 208.70 | 110.25 |
1) Attributable to parent company shareholders.
Profit from property management amounted to SEK 1,088 million (965) corresponding to an increase per share of 9 % to SEK 5.83.
During the quarter we have seen a negative effect of the pandemic compared to the first quarter in the previous year, mainly in our hotel segment but also when it comes to retail in city centers, restaurants and residential properties in Finland.
We took possession of Masmästaren and invested further in all of our residential projects. The demand is still good for both tenant-owner's apartments and rental apartments.
As a group, the profit was significantly higher than for the same period last year. The increase is mainly attributable to Entra and to a higher profit for Collector.
After the end of the period, we signed an agreement to acquire the Norwegian real estate company Asset Buyout Partners (ABP), with estimated closing at the beginning of Q3.
The investment has been very well received in Norway and we look forward to continue to invest, be a part of and contribute to the development of the future projects in many of ABP's areas. These are in line with our sustainability work, for example CCS (Carbon Capture Storage), sea and land based wind power, hydrogen, battery production and land based fish production among other things.
We look very positively at opportunities for new business in the future and not at least on the development of our fine portfolio of building rights. In addition, we have our rewarding collaboration with our partners in various associated companies and joint ventures.
As vaccinations progress around the country, we are now beginning with cautious optimism to anticipate a possible return to normal routines this autumn.
I would like to take this opportunity to thank all employees for your daily commitment to Balder!
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.
| 2021 31 March |
2020 31 Dec |
2020 30 Sep |
2020 30 June |
2020 31 March |
2019 31 Dec |
2019 30 Sep |
2019 30 June |
2019 31 March |
2018 31 Dec |
2018 30 Sep |
|---|---|---|---|---|---|---|---|---|---|---|
| 8,505 | 8,545 | 8,335 | 8,240 | 8,100 | 8,000 | 7,830 | 7,435 | 7,175 | 7,000 | 6,800 |
| –2,210 | –2,225 | –2,130 | –2,120 | –2,090 | –2,080 | –2,060 | –1,940 | –1,875 | –1,885 | –1,845 |
| 6,295 | 6,320 | 6,205 | 6,120 | 6,010 | 5,920 | 5,770 | 5,495 | 5,300 | 5,115 | 4,955 |
| 74 % | 74 % | 74 % | 74 % | 74 % | 74 % | 74 % | 74 % | 74 % | 73 % | 73 % |
| –720 | –675 | –690 | –690 | –680 | – 670 | –640 | –640 | –620 | –595 | –590 |
| 1,340 | 1,110 | 735 | 735 | 760 | 785 | 775 | 750 | 775 | 735 | 660 |
| 6,915 | 6,755 | 6,250 | 6,165 | 6,090 | 6,035 | 5,905 | 5,605 | 5,455 | 5,255 | 5,025 |
| –1,580 | –1,450 | –1,380 | –1,420 | –1,420 | –1,330 | –1,330 | –1,270 | –1,250 | –1,125 | –1,100 |
| –555 | ||||||||||
| 4,710 | 4,675 | 4,200 | 4,075 | 4,000 | 4,030 | 3,920 | 3,715 | 3,625 | 3,565 | 3,370 |
| –975 | –970 | –870 | –825 | –870 | –875 | –855 | –775 | –765 | –750 | –730 |
| 3,735 | 3,705 | 3,330 | 3,250 | 3,130 | 3,155 | 3,065 | 2,940 | 2,860 | 2,815 | 2,640 |
| 25.26 | 25.06 | 23.33 | 22.64 | 22.22 | 22.39 | 21.78 | 20.14 | 19.81 | 18.72 | |
| –625 | –630 | – 670 | – 670 | – 670 | –675 | –655 | –620 20.64 |
–580 | –565 |
1) Attributable to parent company shareholders.
2) Mainly refers to deferred tax, which does not affect the cash flow.
In the current earning capacity the following exchange rates have been used for translation of the foreign subsidiaries' income statement items.
EUR: 10.12 DKK: 1.36 NOK: 0.99 GBP: 11.59
Profit from property management for the period amounted to SEK 1,228m (1,136), of which effect of changes in exchange rates amounted to SEK –26m (12). Profit from property management attributable to parent company shareholders increased by 13 % and amounted to SEK 1,088m (965), which corresponds to an increase per share of 9 % to SEK 5.83 (5.36). Profit from property management includes SEK 265m (126) in respect of associated companies.
Net profit after tax for the period amounted to SEK 2,896m (1,228). Net profit after tax attributable to parent company shareholders amounted to SEK 2,665m (1,063), corresponding to SEK 14.29 per share (5.91). Profit before tax was affected by unrealised changes in value in respect of investment properties of SEK 1,398m (257), realised changes in value in respect of investment properties of SEK 115 (3), profit from sales of development properties of SEK 24m (–), changes in value of interest rate derivatives of SEK 299m (–172) and profit from participations in associated companies of SEK 516m (99).
Rental income increased by 5 % to SEK 2,118m (2,023), of which the effect of changes in exchange rates was SEK –58m (25). The increase was primarily due to acquisitions and completed projects for own management. The leasing portfolio was estimated to have a rental value on 31 March of SEK 8,920m (8,461). The average rental level for the entire real estate portfolio amounted to SEK 1,867/sq.m. (1,908) excluding project properties.
The like for like rental income has increased with 0.1 % (3.1) 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 95 % (96) on 31 March. The total rental value of unlet areas at the end of the period amounted to SEK 415m (361).
Property costs amounted to SEK –590m (–534) during the period, of which the effect of changes in exchange rates was SEK 17m (–7). Net operating income increased by 3 % to SEK 1,528m (1,489), which implies a surplus ratio of 72 % (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.
Management and administrative costs amounted to SEK –185m (–179) during the period, of which the effect of changes in exchange rates was SEK 6m (–2).
Balder owns property managing and project developing associated companies, see note 14 in Balder's Annual Report for 2020, and 44.1 % in Collector AB (publ) which is a listed niche bank. Brinova Fastigheter AB (publ) is also listed and Balder's share amounts to 21.8 %.
During the first quarter, Balder has invested in Next Step Group AB, Balder's share amounts to 33.3 %. The company is an urban developer and today operates three larger urban development projects in Gothenburg: Nya Hovås, Wendelstrand and GoCo Health Innovation City, for more information see nextstep.se.
Balder also acquired 33.7 % of the shares in Emra gruppen AB during the first quarter. Emrahem is a company in Emra gruppen focused on developing good housing for people with special needs (LSS housing), for more information see emrahus.se.
During the quarter, Balder also continued to acquire shares in the Norwegian listed real estate company Entra ASA. Balder's share as of 31 March 2021 amounts to 32.7 %, for further information see entra.no.
Profit from participations in associated companies/joint ventures amounted during the period to SEK 516m (99) and Balder's participation in the associated companies profit from property management amounted to SEK 265m (126).
Profit before tax was impacted by SEK 361m (1) 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 –110m (–28).
Net financial items amounted to SEK –332m (–291), of which the effect of changes in exchange rates was SEK 8m (–3).
Changes in value of interest rate derivatives amounted to SEK 299m (–172). The positive change in value of derivatives during the period is due to the fact that the long interest rates have increased during the period. Unrealised changes in value do not affect the cash flow.
The average interest rate for net financial items was 1.5 % (1.6) on the closing date.
Balder carried out an individual internal valuation on 31 March of the entire real estate portfolio, see page 8. Unrealised changes in value during the period amounted to SEK 1,398m (257). Realised changes in value amounted to SEK 115m (3) and referred to sale of two investment properties in Norway and condominiums and land. The average yield requirement as of 31 March amounted to 4.5 % (4.5), which is unchanged compared to year-end. The change in value during the period is attributable to improved net operating income and completed projects.
Profit from sales of development properties is recognised when the property is taken into possession by the buyer. Apart from the cost, selling and marketing expenses are included, which are expensed on an ongoing basis, these amounted to SEK –5m during the period.
Two projects have been recognised as income during the first quarter. The sales result for the quarter totaled SEK 24m (–) after deduction of selling and marketing expenses and includes sales of the development projects Brf Bergsjö Hage and Brf Bovieran Salem.
The group's total tax amounted to SEK –419m (30), of which effect of changes in exchange rates amounted to SEK 7m (–2). Current tax expense for the period amounted to SEK –53m (–84), mainly attributable to SATO Oyj and Balder Denmark. Current tax expense attributable to parent company shareholders amounted to SEK –35m (–59).
Deffered tax expense for the period amounted to SEK –366m (114). Tax was calculated based on the applicable tax rate in each country.
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 12,966m (11,475).
Cash flow from operating activities after changes in working capital amounted to SEK –1,697m (348). Investing activities have burdened the cash flow by SEK –10,666m (–3,929). Cash flow from financing activities amounted to net SEK 10,207m (4,206).
Total cash flow for the period amounted to SEK –2,157m (626). Exchange rate difference in cash and cash equivalents amounted to SEK 69m (–).
In addition to unutilised credit facilities of SEK 8,083m (8,868), the Group's cash and cash equivalents, financial investments and unutilised overdraft facilities amounted to SEK 5,303m (3,850) on 31 March.
The number of employees on 31 March amounted to 893 persons (806), of whom 372 were women (339). Balder is organised into seven regions. The head office with Group-wide functions is located in Gothenburg.
The parent company's operations mainly consist of performing Groupwide services but an important part relates to sales of services, principally to associated companies. Sales in the parent company amounted to SEK 103m (98) during the period.
Net profit after tax amounted to SEK –262m (–1,093). Other net financial items amounted to SEK – 603m (–1,203) of which exchange rates differences amounted to SEK – 635m (–1,289), change in value of interest rate derivatives amounted to SEK 267m (–172).
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 31 March Balder owned 1,427 investment properties (1,327) with a lettable area of 4,761 thousand sq.m. (4,418) and a value of SEK 157,659m (148,553). Balder's total rental value excluding projects amounted to SEK 8,891m (8,430).
In addition to investment properties Balder owns development properties with an acquisition cost of SEK 2,678m (2,667). The value of the total property portfolio amounted to SEK 160,337m (151,220).
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 in each country. Balder's ambition is to continue growing in selected markets.
| Number of investment 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 | 605 | 1,144,407 | 2,660 | 2,324 | 2,563 | 96 | 42,117 | 26 |
| Stockholm | 89 | 728,305 | 1,449 | 1,990 | 1,384 | 95 | 29,043 | 18 |
| Gothenburg | 187 | 1,070,318 | 1,705 | 1,593 | 1,617 | 95 | 31,143 | 19 |
| Copenhagen | 21 | 298,646 | 772 | 2,586 | 733 | 95 | 16,715 | 10 |
| South | 80 | 404,432 | 641 | 1,586 | 581 | 91 | 10,752 | 7 |
| East | 312 | 747,485 | 1,175 | 1,572 | 1,130 | 96 | 15,741 | 10 |
| North | 133 | 367,714 | 489 | 1,331 | 469 | 96 | 7,424 | 5 |
| Total excluding projects | 1,427 | 4,761,307 | 8,891 | 1,867 | 8,476 | 95 | 152,934 | 95 |
| Projects for own management | 29 | 29 | 4,724 | 3 | ||||
| Total investment properties | 1,427 | 4,761,307 | 8,920 | 1,867 | 8,505 | 95 | 157,659 | 98 |
| Development properties | 2,678 | 2 | ||||||
| Total real estate portfolio | 1,427 | 4,761,307 | 8,920 | 1,867 | 8,505 | 95 | 160,337 | 100 |
| Distributed by property category | ||||||||
| Residential | 1,109 | 2,813,666 | 5,330 | 1,894 | 5,126 | 96 | 88,874 | 55 |
| Office | 118 | 695,240 | 1,636 | 2,353 | 1,488 | 91 | 30,268 | 19 |
| Retail | 113 | 657,498 | 848 | 1,290 | 815 | 96 | 12,628 | 8 |
| Other | 87 | 594,903 | 1,077 | 1,811 | 1,047 | 97 | 21,164 | 13 |
| Total excluding projects | 1,427 | 4,761,307 | 8,891 | 1,867 | 8,476 | 95 | 152,934 | 95 |
| Projects for own management | 29 | 29 | 4,724 | 3 | ||||
| Total investment properties | 1,427 | 4,761,307 | 8,920 | 1,867 | 8,505 | 95 | 157,659 | 98 |
| Development properties | 2,678 | 2 |
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.
Total real estate portfolio 1,427 4,761,307 8,920 1,867 8,505 95 160,337 100
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, in addition to the cash flow based method, valuation at acquisition cost is used. The properties in Russia are valued using the sales comparison method.
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 31 March, Balder's average yield requirement amounted to 4.5 % (4.5) 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 opinions1) 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 157,659m (148,553) on 31 March. The unrealised change in value during the period amounted to SEK 1,398m (257) of which 53 % is attributable to residential properties. Of the total unrealised change in value, 4 % is related to completed projects. The change in value during the period is attributable to improved net operating income and completed projects.
During the period, a total of SEK 6,460m (2,903) was invested relating to investment properties, of which SEK 5,504m (1,707) related to acquisitions and SEK 956m (1,195) related to investments in existing properties and projects for own management. During the period two investment properties in Norway and condominiums and land have been divested at a sales value of SEK 1,148m (105). Profit from the sales amounted to SEK 151m of which realised changes in value of investment properties amountet to SEK 115m (3) and deferred tax income amounted to SEK 36m resulting from the fact that the sales were made as company transactions.
| CHANGE IN CARRYING AMOUNT OF PROPERTIES | 2021 | 2020 | |||
|---|---|---|---|---|---|
| SEKm | Number2) | SEKm | Number2) | ||
| Investment properties, 1 January | 149,179 | 1,362 | 141,392 | 1,298 | |
| Investments in existing properties and projects | 956 | 1,195 | |||
| Acquisitions | 5,504 | 62 | 1,707 | 13 | |
| Sales | –1,033 | –2 | –102 | – | |
| Change in value of investment properties, unrealised | 1,398 | 257 | |||
| Currency changes | 1,656 | 4,103 | |||
| Reclassification | – | 5 | – | 16 | |
| Investment properties, 31 March | 157,659 | 1,427 | 148,553 | 1,327 | |
| Development properties, 1 January | 2,803 | 2,344 | |||
| Reclassification | – | – | |||
| Investments in projects | 144 | 323 | |||
| Sales | –269 | – | |||
| Development properties, 31 March | 2,678 | 2,667 | |||
| Total real estate portfolio, 31 March | 160,337 | 151,220 |
1) Review performed by external valuation company of used valuation method. 2) Number of investment properties.
| Quarter | Number | Name of property | Municipality | Property category Lettable area, sq.m. | |
|---|---|---|---|---|---|
| Acquisitions | |||||
| One | 1 | Prästtäkten 20 | Falun | Office | 4,246 |
| One | 1 | Hattmakaren 10 | Falun | Residential | 1,483 |
| One | 1 | Bokbindaren 2 | Falun | Residential | 3,289 |
| One | 1 | Sparbanken 6 | Falun | Residential | 2,361 |
| One | 1 | Smeden 9 | Falun | Residential | 6,547 |
| One | 1 | Kronomagasinet 8-9 | Falun | Residential | 2,528 |
| One | 1 | Kronobränneriet 4 | Falun | Residential | 2,997 |
| One | 1 | Bergsrådmannen 9 | Falun | Residential | 3,463 |
| One | 1 | Bokbindaren 4 | Falun | Residential | 935 |
| One | 1 | Kronomagasinet 3 | Falun | Residential | 527 |
| One | 1 | Hästbryggan 1 | Falun | Residential | 1,375 |
| One | 1 | Bergsrådmannen 3 | Falun | Residential | 616 |
| One | 1 | Arkivet 1 | Falun | Office | 2,061 |
| One | 1 | Köpmannen 12 & 13 | Falun | Retail | 2,125 |
| One | 1 | Vedkompaniet 1 | Falun | Residential | 3,780 |
| One | 1 | Repslagaren 4 | Falun | Residential | 5,790 |
| One | 1 | Kardmakaren 21 | Falun | Residential | 6,268 |
| One | 1 | Kronomagasinet 5 | Falun | Residential | 771 |
| One | 1 | Hattmakaren 9 | Falun | Office | 1,240 |
| One | 1 | Balder 8 | Borlänge | Office | 11,634 |
| One | 1 | Balder 4 | Borlänge | Residential | 1,714 |
| One | 1 | Frithiof 6 | Borlänge | Residential | 2,268 |
| One | 1 | Domnarvet 50:31 | Borlänge | Residential | 12,172 |
| One | 1 | Sigge 1 | Borlänge | Residential | 1,651 |
| One | 1 | Balder 9-10 | Borlänge | Residential | 1,530 |
| One | 1 | Balder 6 | Borlänge | Residential | 2,081 |
| One | 1 | Lugnet 2:6 | Falun | Hotel | 7,907 |
| One | 1 | Lugnet 2:5 | Falun | Education/Care | 3,376 |
| One | 1 | Norslundsskogen 1-4 | Falun | Residential | 28,413 |
| One | 1 | Posten 6 | Falun | Office | 8,193 |
| One | 1 | Ingarvsmon 3 | Falun | Other | 5,084 |
| One | 1 | Frithiof 9 | Borlänge | Office | 3,613 |
| One | 1 | Frigga 6 | Borlänge | Residential | 793 |
| One | 1 | Främby 1:39 | Falun | Other | 4,427 |
| One | 1 | Helge 7 | Västerås | Other | 4,179 |
| One | 1 | Jarl 1 | Västerås | Office | 7,200 |
| One | 1 | Borrkronan 1 | Västerås | Residential | 8,666 |
| One | 1 | Dragarbrunn 11:1 | Uppsala | Office | 15,280 |
| One | 1 | Dragarbrunn 14:3 | Uppsala | Residential | 3,983 |
| One | 1 | Svartbäcken 51:3 | Uppsala | Office | 3,500 |
| One | 1 | Hattmakaren 15 | Falun | Office | 2,621 |
| One | 1 | Sparbanken 7 | Falun | Office | 2,637 |
| One | 1 | Munken 1 | Falun | Other | 3,496 |
| One | 1 | Torkel 8 | Borlänge | Office | 3,101 |
| One | 1 | Engelbrekt 1 | Västerås | Residential | 6,662 |
| One | 1 | Bryggaren 16 | Falun | Residential | 1,250 |
| One | 1 | Bryggaren 26 | Falun | Residential | 1,684 |
| One | 1 | Hanrö 2 | Falun | Residential | 1,110 |
| One | 1 | Lagmannen 7 | Falun | Residential | 1,441 |
| One | 1 | Färgaren 4 | Falun | Residential | 3,564 |
| One | 1 | Sandviken 17:1 | Falun | Residential PROJEKT HALLONBERGEN, SUNDBYBERG |
2,272 |
| One | 1 | Sandviken 28:1 | Falun | Residential | 347 |
| One | 1 | Lallarvet 17 | Falun | Residential | 7,033 |
| One | 1 | Dahlian 21 | Falun | Residential | 409 |
| Quarter | Number | Name of property | Municipality | Property category | Lettable area, sq.m. |
|---|---|---|---|---|---|
| Acquisitions | |||||
| One | 1 | Dragarbrunn 19:6 | Uppsala | Office | 3,321 |
| One | 1 | Hasseludden 1:73 | Nacka | Hotel | 7,159 |
| One | 1 | Kronomagasinet 1 | Falun | Residential | 542 |
| One | 1 | Fjärdingen 27:8 | Uppsala | Office | 960 |
| One | 1 | Dragarbrunn 22:1 | Uppsala | Office | 6,645 |
| One | 1 | Prästtäkten 5 | Falun | Residential | 1,187 |
| One | – | Vitsippan 5 | Falun | Project | – |
| One | 1 | Bolsheden 1:54 | Kungsbacka | Office | 989 |
| One | 1 | Bolsheden 1:64 | Kungsbacka | Industrial/Warehouse | 5,146 |
| Total | 62 | 253,642 |
| Quarter | Number | Name of property | Municipality | Property category | Lettable area, sq.m. |
|---|---|---|---|---|---|
| Divestments | |||||
| One | 1 | Elverum 13/1059/0/1 | Hamar, Norway | Other | 16,400 |
| One | 1 | Trondheim 5001/416/105 | Trondheim, Norway | Residential | 3,577 |
| Total | 2 | 19,977 |
Within the frame of property development, both new production and conversion projects of residentials and commercial spaces are carried out. Investments are made primarily in areas where the company already operates with a focus on the metropolitan regions of Stockholm, Gothenburg, Helsinki and Copenhagen. The building rights portfolio mainly includes building rights for the construction of both rental apartments and apartments for sale but also commercial properties.
Projects for own management under construction has an estimated total investment of SEK 7.3 billion (7.9), of which SEK 3.4 billion (5.1) is invested and SEK 3.9 billion (2.8) remains to be invested. Most of the ongoing projects relate to residential projects with owner apartments for rental use. The projects comprise about 2,900 apartments (2,400) and mainly refers to about 1,300 apartments in Helsinki, about 800 apartments in Copenhagen and about 350 apartments in Gothenburg.
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.
Development projects under construction has an estimated total investment of SEK 2.3 billion (2.7), of which SEK 1.0 billion (1.5) is invested and SEK 1.3 billion (1.2) remains to be invested. All of the projects are residential projects that will be sold to end customer. The projects involve approx. 660 apartments (600) and mainly refers to approx. 560 tenantowner's apartments in Sweden.
Two sales results regarding development projects are reported in the first quarter. The sale during the quarter refers to the development projects Brf Bergsjö Hage and Brf Bovieran Salem. The cost of the projects amounted to SEK –274m (–) and the profit from the sales amounted to SEK 24m (–), including the marketing and sales costs of the quarter of SEK –5m regarding all development properties.
| Country | Region | Project | Property category |
Lettable area, sq.m. |
Number of apartments |
Estimated total investment, SEKm |
Estimated completion |
|---|---|---|---|---|---|---|---|
| Sweden | Stockholm | Hedin Haninge | Retail | 3,841 | – | 75 | Q2 2021 |
| Finland | Helsinki | Espoo Iris | Residential | 2,465 | 41 | 103 | Q2 2021 |
| Finland | Helsinki | As Oy Vantaan Ruutulippu | Residential | 4,181 | 96 | 164 | Q2 2021 |
| Finland | Helsinki | As Oy Helsingin Redin Loisto | Residential | 759 | 17 | 47 | Q3 2021 |
| Finland | Helsinki | As Oy Kirkkonummen Manhattan | Residential | 3,960 | 165 | 176 | Q3 2021 |
| Finland | East | As Oy Oulun Mallasmaisteri | Residential | 4,032 | 168 | 135 | Q3 2021 |
| Finland | Helsinki | Kappelitie 5 | Residential | 3,417 | 77 | 165 | Q4 2021 |
| Finland | Helsinki | Sompasaaren Priki | Residential | 2,890 | 57 | 197 | Q4 2021 |
| Finland | Helsinki | Virtakuja 6 | Residential | 2,695 | 76 | 129 | Q4 2021 |
| Finland | East | As Oy Turun Montana | Residential | 2,781 | 89 | 109 | Q4 2021 |
| Finland | East | As Oy Nokian Värjäämö | Residential | 3,033 | 105 | 104 | Q4 2021 |
| Finland | Helsinki | Lupajantie 2 | Residential | 4,505 | 112 | 80 | Q1 2022 |
| Sweden | East | Mörtlösa Mercedes | Retail | 6,300 | – | 135 | Q1 2022 |
| Sweden | East | Mörtlösa Porsche | Retail | 4,200 | – | 89 | Q1 2022 |
| Denmark | Copenhagen | Lynghaven | Residential | 14,835 | 184 | 528 | Q2 2022 |
| Denmark | Copenhagen | Ofeliahaven | Residential | 9,079 | 109 | 323 | Q2 2022 |
| Denmark | Copenhagen | Fyrkanten HTC A10 | Residential | 8,854 | 110 | 336 | Q2 2022 |
| Finland | Helsinki | As Oy Hämeenlinnan Asemanranta | Residential | 2,802 | 100 | 109 | Q2 2022 |
| Finland | East | As Oy Oulun Sokurin Hyve | Residential | 2,109 | 68 | 70 | Q2 2022 |
| Finland | Helsinki | Jokiniityntie 28 | Residential | 3,452 | 79 | 141 | Q2 2022 |
| Finland | Helsinki | Runoratsaunkatu 15 | Residential | 5,355 | 135 | 95 | Q3 2022 |
| Finland | Helsinki | Jokiniementie 46 | Residential | 4,548 | 104 | 92 | Q3 2022 |
| Sweden | Gothenburg | Stenhuggaren | Residential | 5,233 | 88 | 143 | Q3 2022 |
| Sweden | Gothenburg | Bergskristallen | Residential | 5,079 | 89 | 186 | Q4 2022 |
| Sweden | Gothenburg | Hedin HK | Office | 12,286 | – | 496 | Q4 2022 |
| Denmark | Copenhagen | Rubinhaven HTC A17 | Residential | 8,646 | 126 | 363 | Q4 2022 |
| Finland | Helsinki | Jokiniementie 48 | Residential | 5,355 | 118 | 110 | Q4 2022 |
| Sweden | Gothenburg | Bergsjön | Residential | 8,916 | 177 | 327 | 2022-2023 |
| Finland | Helsinki | Kotkatie 6 | Residential | 3,685 | 100 | 44 | Q2 2023 |
| Denmark | Copenhagen | Green Hills | Residential | 24,886 | 294 | 941 | Q3 2023 |
| Sweden | Gothenburg | Hotell Draken | Hotel | 28,166 | – | 1,270 | Q3 2023 |
| Total | 202,345 | 2,884 | 7,282 |
| Country | Region | Project | Property category |
Lettable area, sq.m. |
Number of apartments |
Estimated total investment, SEKm |
Estimated completion |
|---|---|---|---|---|---|---|---|
| Sweden | South | Bovieran Staffanstorp | Residential | 4,273 | 54 | 170 | Q2 2021 |
| Sweden | Stockholm | Berget | Residential | 1,467 | 21 | 162 | Q2 2021 |
| Finland | Helsinki | Virtakuja 4 | Residential | 2,117 | 55 | 105 | Q4 2021 |
| Sweden | Gothenburg | Fixfabriken | Residential | 19,114 | 270 | 897 | 2021-2022 |
| Norway | North | Sandefjord | Residential | 6,793 | 46 | 292 | Q1 2022 |
| Sweden | Gothenburg | Bergsfallet | Residential | 5,440 | 87 | 242 | Q3 2022 |
| Sweden | Gothenburg | Västra Gatan Kungälv | Residential | 8,135 | 128 | 421 | Q3 2023 |
| Total | 47,339 | 661 | 2,288 | ||||
| Total | 249,684 | 3,545 | 9,571 |
| Country | Region | Project | Property category |
Lettable area, sq.m. |
Number of apartments |
Estimated total investment, SEKm |
Construction start |
|---|---|---|---|---|---|---|---|
| Sweden | Gothenburg | Frölunda | Residential | 21,220 | 392 | 833 | 2021 |
| Denmark | Copenhagen | Strandby Huse D och Höje A Hundige Øst | Residential | 22,332 | 332 | 854 | 2021 |
| Denmark | Copenhagen | Triumphbyen Hovvej | Residential | 10,800 | 138 | 405 | 2021 |
| Finland | Helsinki | Lincolninaukio 4 | Residential | 5,100 | 137 | 241 | 2021 |
| Finland | Helsinki | Raudikkokuja 7 | Residential | 5,780 | 161 | 262 | 2021 |
| Finland | East | Heittoniitynkuja 5 | Residential | 5,759 | 132 | 199 | 2021 |
| Finland | East | Hervantajärven Helmi | Residential | 2,741 | 52 | 95 | 2021 |
| Finland | East | As Oy Turun Henning | Residential | 3,494 | 117 | 152 | 2021 |
| Finland | East | As Oy Oulun Toppilansalmi | Residential | 1,804 | 55 | 57 | 2021 |
| Finland | Helsinki | As Oy Kirkkonummen Pyssy-Seppä | Residential | 1,770 | 74 | 79 | 2021 |
| Finland | Helsinki | As Oy Riihimäen Pesispolku | Residential | 2,430 | 100 | 86 | 2021 |
| Finland | East | As Oy Turun Kirstinpuisto | Residential | 3,771 | 129 | 165 | 2021 |
| Finland | Helsinki | As Oy Kirkkonummen Lukko-Seppä | Residential | 1,770 | 74 | 79 | 2021 |
| Finland | Helsinki | Kaskilaaksontie | Residential | 2,559 | 63 | 33 | 2021 |
| Finland | Helsinki | Nihtisillankuja | Residential | 5,270 | 129 | 105 | 2021 |
| Finland | Helsinki | Linjaloisonkatu | Residential | 2,975 | 60 | 51 | 2022 |
| Finland | Helsinki | Hexagon | Residential | 3,570 | 75 | 228 | 2022 |
| Total | 103,145 | 2,220 | 3,925 |
| Country | Region | Project | Property category |
Lettable area, sq.m. |
Number of apartments |
Estimated total investment, SEKm |
Construction start |
|---|---|---|---|---|---|---|---|
| Sweden | Gothenburg | Bastuban | Residential | 11,000 | 133 | 449 | 2021 |
| Sweden | Gothenburg | Bohusgatan | Residential | 18,856 | 326 | 1,146 | 2021-2022 |
| Sweden | Gothenburg | Hovås Höjd | Residential | 10,616 | 146 | 572 | 2021 |
| Sweden | Gothenburg | Bergsjö Glänta | Residential | 3,619 | 31 | 115 | 2021 |
| Sweden | Stockholm | Gladan | Residential | 7,630 | 144 | 643 | 2021 |
| Sweden | Stockholm | Basaren | Residential | 4,334 | 65 | 294 | 2021 |
| Sweden | Stockholm | Caprea | Residential | 3,742 | 28 | 440 | 2021 |
| Sweden | South | Bovieran Svedala | Residential | 4,273 | 54 | 160 | 2021 |
| Norway | North | Ski, Linåskollen | Residential | 16,200 | 169 | 767 | 2021 |
| Total | 80,270 | 1,096 | 4,586 | ||||
| Total | 183,415 | 3,316 | 8,511 |
| Country | Region | Gross area, sq.m | Number of apartments |
|---|---|---|---|
| Sweden | Gothenburg | 612,631 | 5,574 |
| Sweden | Stockholm | 507,150 | 4,924 |
| Finland | Helsinki | 249,802 | 4,525 |
| Finland | East | 28,200 | 515 |
| Denmark | Copenhagen | 40,024 | 225 |
| Norway | North | 47,580 | 732 |
| Total | 1,485,387 | 16,495 |
The table above shows Balder's share of projects with ongoing project development distributed by country and region and with an estimated start of construction from 2022 onwards. At the end of the period, Balder's share of projects with ongoing project development comprised of 1,485,387 sq.m. gross area and 16,495 apartments.
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 6.4 years (6.9). Balder's 10 largest leases represent 4.5 % (4.7) of total rental income and the average lease term amounts to 9.9 years (12.3).
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 3.9 % (3.6) of total rental income.
| Maturity date | Number of leases |
Proportion, % | Contracted rent, SEKm |
Proportion, % |
|---|---|---|---|---|
| 2021 | 865 | 22 | 252 | 3 |
| 2022 | 1,192 | 31 | 441 | 5 |
| 2023 | 651 | 17 | 408 | 5 |
| 2024 | 628 | 16 | 399 | 5 |
| 2025– | 572 | 15 | 1,894 | 22 |
| Total | 3,908 | 100 | 3,394 | 40 |
| Residential 1) | 42,907 | 5,009 | 59 | |
| Car park 1) | 6,081 | 24 | 0 | |
| Garage 1) | 6,106 | 78 | 1 | |
| Total | 59,002 | 8,505 | 100 |
1) Normally runs subject to a period of notice of three months.
Rental income Profit from property management attributable to parent company shareholders
as of 31/03/2021
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 each country's currency 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 original maturity of 60 years and is considered as 50 % equity by the credit rating agencies. During the quarter, an additional EUR 500 million in hybrid capital was issued with a fixed interest rate of 2.88 % with maturity 2081 and EUR 500 million as a senior bond with a fixed interest rate of 1.01 % with maturity 2029.
| FINANCIAL KEY RATIOS | 2021 31 March |
2020 31 March |
2020 31 Dec |
|---|---|---|---|
| Interest-bearing liabilities excl. Hybrid capital, SEKm | 91,770 | 84,845 | 85,476 |
| Hybrid capital, SEKm | 8,702 | 3,879 | 3,513 |
| Available liquidity including confirmed loan commitments, SEKm | 13,386 | 12,718 | 20,509 |
| Average fixed credit term, years | 5.9 | 5.9 | 5.9 |
| Average interest rate refixing period, years | 3.9 | 3.3 | 3.5 |
| Net debt to total assets (financial covenant 1) < 65), % | 47.6 | 49.7 | 46.1 |
| Interest coverage ratio (financial covenant 1) > 1.8), times | 4.9 | 5.1 | 5.3 |
| Secured debt/Total assets (financial covenant 1) < 45), % | 15.5 | 15.6 | 15.6 |
| Net debt/EBITDA, times | 14.7 | 14.6 | 13.2 |
| Credit rating S&P | BBB Stable outlook |
BBB Stable outlook |
BBB Stable outlook |
| Calculation of net debt | |||
| Interest-bearing liabilities excl. Hybrid capital, SEKm | 91,770 | 84,845 | 85,476 |
| Other liability 2) | 957 | – | 3,009 |
| Hybrid capital (50 % is treated as equity by rating agencies), SEKm | 4,351 | 1,940 | 1,757 |
| Cash and cash equivalents and financial investments, SEKm | –4,890 | –3,500 | –7,127 |
| Net debt | 92,187 | 83,284 | 83,115 |
1) Financial covenants refers to obligations that Balder has to its financiers in the form of financial key ratios. 2) Other liability relates to obligation regarding purchase of shares in Entra ASA.
Unsecured bonds, 59 Secured bonds, 0
Secured bank loans, 29 Unsecured bank loans, 9 Commercial papers, 2
| FINANCIAL TARGETS | Target | Outcome | |
|---|---|---|---|
| Equity/assets ratio, % | min. | 40.0 | 39.3 |
| Net debt to total assets, % | max. | 50.0 | 47.6 |
| Interest coverage ratio, times | min. | 2.0 | 4.9 |
Secured loans, 29,975 Unsecured loans, 70,497
| Year | SEKm | Proportion, % |
|---|---|---|
| 2021 | 7,578 | 8 |
| 2022 | 13,687 | 14 |
| 2023 | 11,391 | 11 |
| 2024 | 11,262 | 11 |
| 2025 | 9,724 | 10 |
| 2026 | 12,990 | 13 |
| 2027 | 5,338 | 5 |
| 2028 | 6,796 | 7 |
| 2029 | 6,063 | 6 |
| 2030 | 2,847 | 3 |
| 2031- | 12,797 | 13 |
| Total | 100,472 | 100 |
| Year | SEKm | Interest, % | Proportion, % |
|---|---|---|---|
| 2021 | 31,931 | 1.1 | 32 |
| 2022 | 7,357 | 1.4 | 7 |
| 2023 | 9,695 | 2.4 | 10 |
| 2024 | 4,208 | 1.6 | 4 |
| 2025 | 7,882 | 2.2 | 8 |
| 2026 | 12,581 | 2.5 | 13 |
| 2027 | 6,552 | 1.2 | 7 |
| 2028 | 6,949 | 0.7 | 7 |
| 2029 | 8,417 | 1.3 | 8 |
| 2030 | 1,197 | 1.4 | 1 |
| 2031- | 3,703 | 1.7 | 4 |
| Total | 100,472 | 1.5 | 100 |
DEBT MATURITY STRUCTURE 31/03/2021
FIXED INTEREST TERM
Balder is a partner in a large number of property managing and project developing companies as well as in the niche bank Collector, for further information on Balder's associated companies, see pages 34-36 and 69-70 in Balder's annual report 2020.
During the quarter, Balder invested SEK 5,806m in associated companies, which mainly relates to an additional 15 % of the shares in Entra ASA. Other companies that have been added are Next Step Group AB 33.3 % and Emra gruppen AB 33.7 %. The table below shows Balder's share of property managing associated companies. Companies included in the table are Tulia AB 50 % (50), Fastighets AB Centur 50 % (50), Trenum AB 50 % (50), Anthon B Nilsen Eiendom AS 50 % (–), Sinoma Fastighets AB 49 % (49), Serena Properties AB 56 % (56), Tornet Bostadsproduktion AB 33 % (33), Entra ASA 32.7 % (–) and Brinova Fastigheter AB 21.7 % (25.5).
| Number of investment 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 | 83 | 211,295 | 338 | 1,599 | 322 | 95 | 6,388 | 17 |
| Gothenburg | 45 | 165,628 | 203 | 1,227 | 190 | 93 | 2,812 | 7 |
| Öresund | 141 | 142,098 | 209 | 1,471 | 200 | 96 | 3,279 | 9 |
| East | 39 | 143,766 | 183 | 1,272 | 179 | 98 | 2,728 | 7 |
| Oslo | 40 | 204,718 | 525 | 2,564 | 502 | 96 | 11,695 | 31 |
| Other Norway | 39 | 168,935 | 311 | 1,841 | 305 | 98 | 6,031 | 16 |
| Total excluding projects | 387 | 1,036,439 | 1,769 | 1,707 | 1,699 | 96 | 32,932 | 87 |
| Projects for own management | 1 | 1 | 4,938 | 13 | ||||
| Total real estate portfolio | 387 | 1,036,439 | 1,770 | 1,707 | 1,699 | 96 | 37,871 | 100 |
| Distributed by property category | ||||||||
| Residential | 114 | 143,988 | 264 | 1,831 | 256 | 97 | 5,361 | 14 |
| Office | 107 | 464,366 | 974 | 2,098 | 934 | 96 | 20,065 | 53 |
| Retail | 62 | 254,780 | 308 | 1,209 | 294 | 95 | 4,143 | 11 |
| Other | 104 | 173,305 | 223 | 1,289 | 215 | 96 | 3,363 | 9 |
| Total excluding projects | 387 | 1,036,439 | 1,769 | 1,707 | 1,699 | 96 | 32,932 | 87 |
| Projects for own management | 1 | 1 | 4,938 | 13 | ||||
| Total real estate portfolio | 387 | 1,036,439 | 1,770 | 1,707 | 1,699 | 96 | 37,871 | 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 the entire associated companies' portfolio.
| SEKm | 2021 31 March |
2020 31 March |
2020 31 Dec |
|---|---|---|---|
| Assets | |||
| Properties | 37,871 | 14,881 | 27,860 |
| Other assets | 1,140 | 270 | 759 |
| Cash and cash equivalents | 512 | 174 | 282 |
| Total assets | 39,522 | 15,325 | 28,901 |
| Shareholders' equity and liabilities | |||
| Equity/interest-bearing shareholder loan |
18,051 | 6,626 | 12,952 |
| Deferred tax liability | 3,437 | 771 | 2,179 |
| Interest-bearing liabilities | 16,097 | 7,287 | 12,234 |
| Other liabilities | 1,938 | 641 | 1,537 |
| Total equity and liabilities | 39,522 | 15,325 | 28,901 |
CARRYING AMOUNT DISTRIBUTED BY REGION, TOTAL REAL ESTATE PORTFOLIO, %
After the end of the period, Balder has signed an agreement to acquire the Norwegian real estate company Asset Buyout Partners (ABP). ABP is a leading independent Norwegian industrial real estate company with real estate assets located in mission critical energy and maritime clusters along the Norwegian coast, primarily in the cities of Bergen and Stavanger. The property value amounts to approximately NOK 9,000 million distributed over 106 properties. Rental income is estimated to amount to approximately NOK 600 million and net operating income to approximately NOK 560 million. Closing will take place on 1 July 2021, subject to approval by the Norwegian Competition Authority.
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 19m (19) 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 2020, on pages 42-45. 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 2020.
New and changed standards and principles that came into force as of January 1, 2021 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.
Gothenburg 12 May 2021
Erik Selin Chief Executive Officer
| SEKm | 2021 Jan-March |
2020 Jan-March |
2020/2021 April-March |
2020 Jan-Dec |
|---|---|---|---|---|
| Rental income | 2,118 | 2,023 | 8,229 | 8,134 |
| Property costs | –590 | –534 | –1,975 | –1,919 |
| Net operating income | 1,528 | 1,489 | 6,254 | 6,216 |
| Management and administrative costs | –185 | –179 | –682 | – 676 |
| Participations in the profits of associated companies/joint ventures | 516 | 99 | 1,314 | 897 |
| – of which profit from property management | 265 | 126 | 801 | 663 |
| – of which changes in value | 361 | 1 | 849 | 489 |
| – of which tax | –110 | –28 | –336 | –254 |
| Other income/costs | –46 | –9 | 334 | 371 |
| – of which unrealised change in value of long-term financial asset | – | – | 462 | 462 |
| Net financial items | –332 | –291 | –1,253 | –1,212 |
| – of which cost of leases/ground rent | –17 | –16 | –64 | –64 |
| Profit including changes in value and tax in associated companies | 1,479 | 1,109 | 5,967 | 5,597 |
| – of which Profit from property management | 1,228 | 1,136 | 4,992 | 4,900 |
| Changes in value | ||||
| Changes in value investment properties, realised | 115 | 3 | 136 | 24 |
| Changes in value investment properties, unrealised | 1,398 | 257 | 4,570 | 3,429 |
| Income sale development properties | 298 | – | 1,550 | 1,253 |
| Costs sale development properties | –274 | – | –1,353 | –1,079 |
| Changes in value derivatives | 299 | –172 | 330 | –141 |
| Changes in value total | 1,836 | 88 | 5,233 | 3,486 |
| Profit before tax | 3,315 | 1,197 | 11,200 | 9,083 |
| Income tax | –419 | 30 | –2,256 | –1,807 |
| Net profit for the period/year | 2,896 | 1,228 | 8,944 | 7,275 |
| Net profit for the period/year attributable to: | ||||
| Parent company shareholders | 2,665 | 1,063 | 8,243 | 6,641 |
| Non-controlling interests | 232 | 164 | 701 | 634 |
| Other comprehensive income – items that may be | 2,896 | 1,228 | 8,944 | 7,275 |
| subsequently reclassified to profit or loss | ||||
| Translation difference relating to foreign operations (net after hedge accounting) | 458 | 485 | –732 | –705 |
| Cash flow hedges after tax | 72 | –18 | 71 | –20 |
| Participation in other comprehensive income of associated companies/joint ventures | 496 | 9 | 450 | –37 |
| Total comprehensive income for the period/year | 3,923 | 1,703 | 8,733 | 6,513 |
| Total comprehensive income for the period/year attributable to: | ||||
| Parent company shareholders | 3,464 | 936 | 8,801 | 6,273 |
| Non-controlling interests | 459 | 768 | –69 | 240 |
| 3,923 | 1,703 | 8,733 | 6,513 | |
| Profit from property management | 1,228 | 1,136 | 4,992 | 4,900 |
| Of which non-controlling interests part of profit from property management | –140 | –172 | –625 | –657 |
| Profit from property management attributable to parent company shareholders | 1,088 | 965 | 4,367 | 4,244 |
| Profit from property management per share, SEK | 5.83 | 5.36 | 23.98 | 23.51 |
| Profit after tax per share, SEK | 14.29 | 5.91 | 45.26 | 36.79 |
| SEKm | 2021 31 March |
2020 31 March |
2020 31 Dec |
|---|---|---|---|
| Assets | |||
| Investment properties | 157,659 | 148,553 | 149,179 |
| Development properties | 2,678 | 2,667 | 2,803 |
| Lease contract; Right-of-use assets | 1,533 | 1,573 | 1,532 |
| Other fixed assets | 170 | 172 | 160 |
| Participations in associated companies/joint ventures | 22,464 | 7,768 | 15,593 |
| Other receivables | 4,259 | 3,325 | 4,007 |
| Cash and cash equivalents and financial investments | 4,890 | 3,500 | 7,127 |
| Total assets | 193,654 | 167,558 | 180,401 |
| Shareholders' equity and liabilities | |||
| Shareholders' equity 1) | 71,680 | 60,442 | 67,885 |
| Deferred tax liability | 12,966 | 11,475 | 12,497 |
| Interest-bearing liabilities | 100,472 | 88,724 | 88,989 |
| –of which Hybrid capital 2) | 8,702 | 3,879 | 3,513 |
| Derivatives | 944 | 1,287 | 1,540 |
| Lease contract | 1,539 | 1,577 | 1,536 |
| Other liabilities | 6,052 | 4,053 | 7,955 |
| Total equity and liabilities | 193,654 | 167,558 | 180,401 |
| 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 |
10,007 | 10,501 | 9,676 |
| when calculating the debt/equity ratio and net debt to total assets ratio and increases equity when calculating the equity/assets ratio. |
4,351 | 1,940 | 1,757 |
| SEKm | 2021 31 March |
2020 31 March |
2020 31 Dec |
|---|---|---|---|
| Opening equity | 67,885 | 58,725 | 58,725 |
| Total comprehensive income for the period/year | 3,923 | 1,703 | 6,513 |
| Transactions with non-controlling interests | – | –2 | –301 |
| Non-controlling interests arising on the acquisition of subsidiary | –128 | – | – |
| Shareholder contributions from non-controlling interests | – | 16 | 17 |
| Share issue, after issue costs | – | – | 2,930 |
| Closing equity | 71,680 | 60,442 | 67,885 |
| SEKm | 2021 Jan-March |
2020 Jan-March |
2020 Jan-Dec |
|---|---|---|---|
| Net operating income | 1,528 | 1,489 | 6,216 |
| Other income/costs | –46 | –9 | –91 |
| Management and administrative costs | –185 | –179 | – 676 |
| Selling and marketing expenses development properties | –5 | – | –20 |
| Reversal of depreciation | 11 | 10 | 41 |
| Net financial items paid | –372 | –285 | –1,174 |
| Taxes paid | –114 | –117 | –310 |
| Cash flow from operating activities before change in working capital | 815 | 909 | 3,986 |
| Change in operating receivables | –359 | –597 | –901 |
| Change in operating liabilities | –2,153 | 36 | 3,435 |
| Cash flow from operating activities | –1,697 | 348 | 6,520 |
| Acquisition of investment properties | –5,386 | –1,707 | –3,491 |
| Acquisition/Divestment of property, plant and equipment | –21 | –16 | –36 |
| Purchase of financial investments | –26 | –34 | –1,665 |
| Acquisition of shares in associated companies/Capital contribution to associated companies/Loans to associated companies/joint ventures |
–5,580 | –817 | –8,128 |
| Investment in existing properties and projects | –1,100 | –1,519 | –5,572 |
| Transactions with non-controlling interests | – | –2 | –301 |
| Sale of investment properties | 1,149 | 105 | 366 |
| Sale of development properties | 298 | – | 1,253 |
| Sale of financial investments | – | 62 | 561 |
| Dividend paid from associated companies/joint ventures | 1 | – | 20 |
| Cash flow from investing activities | –10,666 | –3,929 | –16,993 |
| Share issue, after issue costs | – | – | 2,930 |
| Amortisation of lease liability | –8 | –2 | –19 |
| Shareholder contributions from non-controlling interests | – | 16 | 18 |
| Loans raised | 13,202 | 6,174 | 20,472 |
| Amortisation/redemption of loans sold properties/changes in overdraft facilities | –2,986 | –1,982 | –9,838 |
| Cash flow from financing activities | 10,207 | 4,206 | 13,563 |
| Cash flow for the period/year | –2,157 | 626 | 3,089 |
| Cash and cash equivalents at the start of the period/year | 4,468 | 1,379 | 1,379 |
| Exchange rate difference in cash and cash equivalents | 69 | – | – |
| Cash and cash equivalents at the end of the period/year | 2,380 | 2,004 | 4,468 |
| Available liquidity, SEKm | |||
| Cash and cash equivalents | 2,380 | 2,004 | 4,468 |
| Unutilised overdraft facilities | 413 | 350 | 350 |
| Unutilised credit facilities | 8,083 | 8,868 | 13,032 |
| Financial investments | 2,510 | 1,496 | 2,659 |
| Available liquidity including confirmed credit commitments | 13,386 | 12,718 | 20,509 |
| SEKm | 2021 Jan-March |
2020 Jan-March |
2020/2021 April-March |
2020 Jan-Dec |
|---|---|---|---|---|
| Rental income | ||||
| Helsinki | 587 | 630 | 2,451 | 2,495 |
| Stockholm | 360 | 330 | 1,368 | 1,338 |
| Gothenburg | 404 | 373 | 1,592 | 1,561 |
| Copenhagen | 183 | 169 | 672 | 657 |
| South | 146 | 145 | 585 | 584 |
| East | 315 | 308 | 1,226 | 1,218 |
| North | 122 | 67 | 336 | 282 |
| Total | 2,118 | 2,023 | 8,229 | 8,134 |
| Net operating income | ||||
| Helsinki | 403 | 441 | 1,781 | 1,820 |
| Stockholm | 279 | 259 | 1,115 | 1,095 |
| Gothenburg | 301 | 277 | 1,261 | 1,237 |
| Copenhagen | 138 | 138 | 499 | 499 |
| South | 112 | 108 | 463 | 460 |
| East | 223 | 219 | 891 | 888 |
| North | 72 | 46 | 244 | 218 |
| Total | 1,528 | 1,489 | 6,254 | 6,216 |
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 1,528m (1,489) and profit before tax of SEK 3,315m (1,197) consists of changes in value of investment properties of
SEK 1,513m (260), profit from sales of development properties SEK 24m (–), other income/costs SEK –46m (–9), management and administrative costs of SEK –185m (–179), participations in profits of associated companies/joint ventures of SEK 516m (99), net financial items of SEK –332m (–291) and changes in value of derivatives of SEK 299m (–172).
| SEKm | 2021 31 March |
2020 31 March |
2020 31 Dec |
|---|---|---|---|
| Real estate portfolio | |||
| Helsinki | 42,117 | 42,004 | 40,938 |
| Stockholm | 29,043 | 26,922 | 27,364 |
| Gothenburg | 31,143 | 29,489 | 30,863 |
| Copenhagen | 16,715 | 14,453 | 15,272 |
| South | 10,752 | 10,274 | 10,439 |
| East | 15,741 | 14,910 | 14,448 |
| North | 7,424 | 4,735 | 5,238 |
| Total excluding projects | 152,934 | 142,786 | 144,562 |
| Projects for own management | 4,724 | 5,766 | 4,617 |
| Total investment properties | 157,659 | 148,553 | 149,179 |
| Development properties | 2,678 | 2,667 | 2,803 |
| Total real estate portfolio | 160,337 | 151,220 | 151,982 |
The carrying amounts of properties have during the period changed by investments, acquisitions, divestments, unrealised changes in value and currency changes, with SEK 1,179m in the Helsinki region, SEK 1,679m in the Stockholm region, SEK 280m in the Gothenburg region, SEK 1,443m in the Copenhagen region, SEK 314m in the South region, SEK 1,293m in the East region and SEK 2,186m in the North region. The Group's projects for own management has increased by SEK 107m and the Group's development properties has decreased by SEK –125m. SATO's property portfolio is divided between the regions Helsinki and East. The real estate holdings in Norway are 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.
| 2021 Jan-March |
2020 Jan-March |
2020/2021 April-March |
2020 Jan-Dec |
|
|---|---|---|---|---|
| Share-related | ||||
| Average number of shares, thousands | 186,500 | 180,000 | 182,125 | 180,515 |
| Profit after tax, SEK | 14.29 | 5.91 | 45.26 | 36.79 |
| Profit after tax excluding unrealised changes in value, SEK | 6.13 | 5.63 | 19.23 | 18.69 |
| Profit from property management, SEK | 5.83 | 5.36 | 23.98 | 23.51 |
| Net operating income, SEK | 6.92 | 6.80 | 28.72 | 28.61 |
| Outstanding number of shares, thousands | 186,500 | 180,000 | 186,500 | 186,500 |
| Shareholders' equity, SEK | 330.69 | 277.45 | 330.69 | 312.12 |
| Long-term net asset value (NAV), SEK | 405.27 | 348.35 | 405.27 | 387.38 |
| Share price on the closing date, SEK | 432.60 | 357.00 | 432.60 | 428.90 |
| Property-related | ||||
| Rental value full-year, SEK/sq.m. | 1,867 | 1,908 | 1,867 | 1,893 |
| Rental income full-year, SEK/sq.m. | 1,780 | 1,827 | 1,780 | 1,809 |
| Economic occupancy rate, % | 95 | 96 | 95 | 96 |
| Vacancy rate, % | 5 | 4 | 5 | 4 |
| Surplus ratio, % | 72 | 74 | 76 | 76 |
| Carrying amount, SEK/sq.m. | 32,120 | 32,320 | 32,120 | 32,114 |
| Number of investment properties | 1,427 | 1,327 | 1,427 | 1,362 |
| Lettable area, sq.m. thousands | 4,761 | 4,418 | 4,761 | 4,502 |
| Profit from property management, attributable to parent company shareholders, SEKm | 1,088 | 965 | 4,367 | 4,244 |
| Financial | ||||
| Return on equity, % | 9.6 | 8.3 | 14.8 | 12.4 |
| Return on total assets, % | 4.3 | 3.5 | 6.9 | 6.1 |
| Interest coverage ratio, times | 4.9 | 5.1 | 5.2 | 5.3 |
| Equity/assets ratio, % | 39.3 | 37.2 | 39.3 | 38.6 |
| Debt/equity ratio, times 1) | 1.4 | 1.4 | 1.4 | 1.3 |
| Net debt to total assets, % 1) | 47.6 | 49.7 | 47.6 | 46.1 |
| Net debt/EBITDA, times 1) | 14.7 | 14.6 | 14.3 | 13.2 |
1) The key figures for 31 March 2021 include SEK 957m which is included in Other liabilities and relates to obligation regarding purchase of shares in Entra ASA. The key figures for 31 December 2020 include SEK 3,009m which is included in Other liabilities and relates to obligation regarding purchase of shares in Entra ASA.
| SEKm | 2021 Jan-March |
2020 Jan-March |
2020/2021 April-March |
2020 Jan-Dec |
|---|---|---|---|---|
| Net sales | 103 | 98 | 354 | 349 |
| Administrative costs | –102 | –99 | –356 | –353 |
| Operating profit | 1 | –2 | –2 | –4 |
| Profit from financial items Dividends from subsidiaries |
– | – | 975 | 975 |
| Other net financial items | –603 | –1,203 | 2,199 | 1,599 |
| – of which exchange rate differences | –635 | –1,289 | 1,439 | 785 |
| – of which unrealised change in value of long-term financial asset | – | – | 462 | 462 |
| Changes in value of derivatives | 267 | –172 | 298 | –141 |
| Profit before appropriations and taxes | –335 | –1,376 | 3,470 | 2,429 |
| Appropriations | ||||
| Group contributions | – | – | –821 | –821 |
| Profit before tax | –335 | –1,376 | 2,649 | 1,608 |
| Income tax | 72 | 283 | –204 | 7 |
| Net profit for the period/year 1) | –262 | –1,093 | 2,446 | 1,615 |
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 | 2021 31 March |
2020 31 March |
2020 31 Dec |
|---|---|---|---|
| Assets | |||
| Property, plant and equipment | 22 | 24 | 22 |
| Financial non-current assets | 26,155 | 14,227 | 20,710 |
| Receivables from Group companies | 60,486 | 54,846 | 57,787 |
| Current receivables | 196 | 311 | 184 |
| Cash and cash equivalents and financial investments | 2,962 | 2,323 | 3,437 |
| Total assets | 89,820 | 71,731 | 82,140 |
| Shareholders' equity and liabilities | |||
| Shareholders' equity | 16,536 | 11,160 | 16,798 |
| Interest-bearing liabilities | 52,172 | 49,404 | 46,366 |
| –of which Hybrid capital | 8,702 | 3,879 | 3,513 |
| Liabilities to Group companies | 19,178 | 10,148 | 14,419 |
| Derivatives | 500 | 798 | 767 |
| Other liabilities | 1,435 | 221 | 3,790 |
| Total equity and liabilities | 89,820 | 71,731 | 82,140 |
Balder's share is listed on Nasdaq Stockholm, Large Cap segment. The company's market capitalisation as of 31 March amounted to SEK 80,680m (64,260).
The principal owner in Fastighets AB Balder is Erik Selin Fastigheter AB, which owns 35.1 % (36.4) of the capital and 48.8 % (49.9) of the votes. Foreign ownership amounts to approximately 33 % (27) of outstanding shares.
At the end of the period, approximately 21,200 shareholders (22,000) held shares. During the period, approximately 16.9 million shares were traded (41.9) which corresponds to an average of about 286,000 shares per trading day (666,000). The annual turnover rate amounted to 36 % (93). The price of the share was SEK 432.60 (357.00) on 31 March, corresponding to an increase of 1 % since year-end.
On 31 March, the share capital in Balder amounted to SEK 186,500,000 distributed among 186,500,000 shares. Each share has a quota value of SEK 1, where of 11,229,432 shares are of Class A and 175,270,568 of Class B. The total number of outstanding shares as of 31 March amounts to 186,500,000. Each Class A share carries one vote and each Class B share carries one tenth of one vote.
| Owner | A shares | B shares | Total number of shares |
Capital, % | Votes, % |
|---|---|---|---|---|---|
| Erik Selin via company | 8,309,328 | 57,210,900 | 65,520,228 | 35.1 | 48.8 |
| Arvid Svensson Invest AB | 2,915,892 | 13,542,540 | 16,458,432 | 8.8 | 14.8 |
| Swedbank Robur fonder | – | 8,202,868 | 8,202,868 | 4.4 | 2.9 |
| SEB Investment Management | – | 6,988,623 | 6,988,623 | 3.7 | 2.4 |
| AMF Försäkring och Fonder | – | 5,504,296 | 5,504,296 | 3.0 | 1.9 |
| Handelsbanken fonder | – | 5,202,401 | 5,202,401 | 2.8 | 1.8 |
| Länsförsäkringar fondförvaltning AB | – | 5,002,367 | 5,002,367 | 2.7 | 1.7 |
| CBNY - Norges Bank | – | 2,255,678 | 2,255,678 | 1.2 | 0.8 |
| Sharam Rahi via company | – | 1,526,800 | 1,526,800 | 0.8 | 0.5 |
| Folksam | – | 1,454,720 | 1,454,720 | 0.8 | 0.5 |
| Other | 4,212 | 68,379,375 | 68,383,587 | 36.7 | 23.8 |
| Total | 11,229,432 | 175,270,568 | 186,500,000 | 100 | 100 |
Share price Net asset value (NAV) Profit from property management
Share price/Net asset value (NAV) Share price/Profit 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
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 was 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 non-controlling interests' share.
Net financial items in the period recalculated to annual value in relation to the average interest-bearing liabilities.
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.
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.
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.
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.
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.
For additional information, please contact CEO Erik Selin, telephone +46 706 074 790 or Head of Finance Marcus Hansson, telephone +46 768 369 848.
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.
Annual General Meeting 12 May 2021 Interim report Jan-June 2021 16 July 2021 Interim report Jan-Sep 2021 11 November 2021 Year-end report 2021 11 February 2022
| Head office | Parkgatan 49 · Box 53 121 · 400 15 Gothenburg · Tel: +46 31-10 95 70 · |
|---|---|
| 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
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