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Intea Interim / Quarterly Report 2023
9343_10-q_2023-05-09_93d553d3-7a8e-4925-84aa-67f0fa7fedf8.pdf
Interim / Quarterly Report
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INTEA.
INTERIM REPORT
JANUARY - MARCH 2023
The period in brief
- Rental income increased by 11.5 percent to SEK 258.6 million (231.9), SEK 13.2 million of which came from properties acquired in 2022.
- Profit from property management totalled SEK 135.4 million (135.4). For more information see page 12.
- Changes in the value of properties amounted to SEK 73.5 million (96.0). For more information see page 12.
-
After-tax profit for the quarter amounted to SEK 72.9 million (400.3). Earnings per Class A and Class B share amounted to SEK 0.28% and per Class D share SEK 0.50%.
-
In all, investments in project and investment properties totalling SEK 417.3 million (366.7) were made during the quarter, as well as acquisitions of hydropower companies amounting to SEK 118.1 million.
- The fair value of the property portfolio at the end of the quarter was SEK 20,648.7 million (20,157.7).
Comparative figures in brackets refer to the corresponding period of the previous year except in the sections describing assets and funding, where comparative figures refer to the end of the previous year. Figures in financial statements, tables and charts may not add up due to rounding.
| Selected key performance indicators | Jan - Mar 2023 | Jan - Mar 2022 | full year 2022 |
|---|---|---|---|
| Rental income, SEKm | 258.6 | 231.9 | 918.3 |
| Profit from property management, SEKm | 135.4 | 135.4 | 497.4 |
| Ditto Class A and Class B share, SEK | 0.72 | 0.80 | 2.74 |
| Ditto growth, % | -10.3 | 45.5 | 11.1 |
| Profit for the period attributable to shareholders of the parent, SEKm | 70.4 | 400.3 | 903.6 |
| Ditto Class A and Class B share, SEK | 0.28 | 2.72 | 5.58 |
| Long-term net asset value per Class A and Class B share, SEK | 51.12 | 48.16 | 50.03 |
| Ditto growth 2), % | 2.2 | 2.8 | 7.7 |
| Property value, SEKm | 20,649 | 18,260 | 20,158 |
| Loan-to-value ratio, % | 52.2 | 53.6 | 51.0 |
| Interest coverage ratio, multiple | 3.4 | 5.0 | 3.9 |
For the basis of the key performance indicators and definitions, see pages 26-29.
494
Lettable area, 000 sqm
20.6
Property value, SEK bn
94.8
Share of public-sector tenants, %
5.8
Remaining contract period, years
1) No diluting instruments exist.
2) Including dividends returned during the period.
This document is an in-house translation of the Swedish Interim report. In the event of discrepancies, the Swedish original will supersede the translation.
SIGNIFICANT EVENTS DURING AND AFTER THE PERIOD JANUARY - MARCH 2023
Significant events during the period
- In mid-February 2023, Charlotta Wallman Hörlin was appointed new Executive Vice President of Intea Fastigheter AB (publ). Christian Haglund, one of Intea's founders and largest shareholders, left this position to become an advisor to the company.
- In February 2023, a bond loan of SEK 300 million was issued under the existing MTN programme. The bond, with a floating interest rate of 2.10 percent plus 3-month STIBOR, has a two-year maturity and matures in March 2025.
- Intea announced on 23 February 2023 that the Group's electricity production will be gathered under the company Intea Kraft AB. Following the acquisition of nine hydropower plants in February, Intea owns a total of twelve hydropower plants, mainly located in electricity zone 3, with a total annual electricity production estimated at 11.5 GWh.
- In March 2023, a 14-year green loan agreement of SEK 410 million was signed with the Nordic Investment Bank (NIB). The loan will be used to finance the construction of the country's first regional command centre (RCC) in Örebro and the new wooden building under construction on the Östersund campus.
For more information about events during and after the period, see our website www.intea.se
Significant events after the end of the period
- In April 2023, bonds of SEK 600 million were issued and at the same time bonds totalling SEK 450 million were repurchased. The issue of SEK 600 million matures in March 2025 and is part of an existing bond loan that now amounts to a total of SEK 900 million. The bonds were issued at a price of SEK 99.53, corresponding to 3-month STIBOR plus 2.35 percent. At the same time, SEK 450 million of a bond loan maturing in September 2023 was repurchased, totalling SEK 1,350 million. The repurchase was made at 100.04 percent of the nominal value, which corresponds to 3-month STIBOR plus 1.10 percent.
INTERIM REPORT JANUARY - MARCH 2023
This document is an in-house translation of the Swedish interim report. In the event of discrepancies, the Swedish original will supersede the translation.
INTEA IN BRIEF
Intea was founded in autumn 2015 with the aim of investing in and managing social infrastructure for its own long-term management. By social infrastructure, Intea means premises for essential services that are specially adapted for the purpose of public-sector tenants.
The existing property portfolio consists primarily of properties in the categories of justice, higher education, health care and other public-sector activities. Tenants comprise government authorities and agencies, regions and other public-sector institutions.
SOCIAL INFRASTRUCTURE
Social infrastructure refers to properties for the Swedish public sector and specially adapted for their purpose. For Intea, this includes exclusively properties where the tenant is a part of the public sector.
Intea's tenants, share of contractual annual rental value
Intea's regional presence, share of property value
INTERIM REPORT JANUARY - MARCH 2023
This document is an in-house translation of the Swedish Interim report. In the event of discrepancies, the Swedish original will supersede the translation.
THE CEO'S COMMENTS
The year 2023 has continued on the same path as the last one, with price increases, high interest rates and a general economic slowdown in society. The company continues to adapt its operations to the market and the picture of the new normal is now beginning to emerge. The value of Intea's property portfolio is growing continuously and totalled SEK 20.6 billion at the end of the period. Rental income of SEK 258.6 million increased by just over 11 percent year on year, while profit from property management was SEK 135 million.
Intea's business is built on a solid foundation of defensive assets with long-term leases with public-sector tenants. After benefiting from extreme market conditions for several years, there is now a correction with an accompanying slowdown in the pace of business. To reflect this change, Intea has started to reduce central expenses by 10 percent. The effects of the measures will start to be seen in the third quarter of 2023 and will be fully effective in the first quarter of 2024.
In February, Intea became fully self-sufficient in renewable electricity after acquiring nine hydropower plants in western Sweden. Following the acquisition, the hydropower portfolio, which goes under the name Intea Kraft, consists of 12 hydropower plants, mainly in electricity zone 3, with a total annual electricity production estimated at 11.5 GWh. In mid-March, the company began construction of a new train depot in Falköping. The new depot will have a lettable area of approximately 5,400 sqm and will be built immediately adjacent to Intea's existing train depot. Construction is scheduled to begin in spring 2023, with occupancy in spring 2025.
During the quarter, Intea and the Nordic Investment Bank agreed on green financing through a 14-year loan of SEK 410 million. The loan will be used to finance the construction of a regional command centre in Örebro, the first of its kind in Europe, and the new wooden building that is under construction on the Östersund campus.
Through new interest rate derivatives entered into during the quarter, the company's interest rate hedge ratio has increased from 59 to 73 percent. At the same time, Intea's average interest rate has been kept low despite the increase in debt due to continuous project investments.
During the period, Charlotta Wallman Hörlin was appointed as the new Executive Vice President of the company. Charlotta, who has worked at Intea since 2019, replaces Christian Haglund, who is moving to work with strategic business development on a consultancy basis in the company. I am very much looking forward to working with Lotta in her new position.
Henrik Lindekrantz, CEO
BUSINESS CONCEPT & GOALS
Intea's business concept is to manage and develop social infrastructure properties using a long-term approach. The Board of Directors of Intea has established the following financial and operational objectives, as well as a dividend policy for the business.
Financial objectives
- Annual growth in long-term net asset value per ordinary Class A and ordinary Class B share over time of at least 12 percent (including any value transfers).
- Annual growth in profit from property management per ordinary Class A and Class B share over time of at least 12 percent.
Operational objectives
- At least 90 percent of rental income must come from public-sector tenants over time.
- Property value must be at least SEK 30 billion by the end of 2026. This will be achieved through both acquisitions and project investments, mainly in new construction.
Financial risk limits
- The loan-to-value ratio for the Group shall be in the range of 50-55 percent over time, and shall not exceed 60 percent.
- The interest coverage ratio for the Group shall not be less than 2 times.
Dividend policy
The total dividend shall amount to approximately 50 percent of profit from property management, of which Class D shares will entitle to a maximum dividend of SEK 2 per Class D share.
INTERIM REPORT JANUARY - MARCH 2023
This document is an in-house translation of the Swedish Interim report. In the event of discrepancies, the Swedish original will supersede the translation.
INTEA'S PROPERTIES
At 31 March 2023, the Group owned 37 project and investment properties (37), including one with a site leasehold, comprising 107 property units (107) with a total lettable area of 494,000 sqm (494,000) at a fair value of SEK 20,649 million (20,158). The properties are located in Eslöv, Falköping, Halmstad, Helsingborg, Härnösand, Kalmar, Kristianstad, Linköping, Lund, Malmö, Norrtälje, Skövde, Stockholm, Uppsala, Vänersborg, Ånge, Örebro and Östersund. In addition, the Group owns twelve hydropower plants in fixed assets, see the Intea Kraft section, page 9, for more information.
Intea's property portfolio comprises social infrastructure and the tenants have high credit ratings. The share of income from public-sector tenants was 94.8 percent (94.8) at 31 March 2023 and the remaining contract period for public-sector leases was an average of 5.8 years (5.9). The contractual annual rental value of SEK 1,004.8 million includes rent rebates of SEK 3.2 million on an annual basis.
Property portfolio KPIs
| Jan – Mar 2023 | Jan – Mar 2022 | full year 2022 | |
|---|---|---|---|
| Acquisitions and investments in properties, SEKm | 417 | 367 | 1,677 |
| Changes in the value of properties, SEKm | 74 | 96 | 143 |
| Property value, SEKm | 20,649 | 18,260 | 20,158 |
| Lettable area, 000 sqm | 494 | 450 | 494 |
| Economic occupancy rate, % | 97.8 | 98.5 | 97.9 |
| Share of public-sector tenants, % | 94.8 | 93.4 | 94.8 |
| Remaining contract period public sector, years | 5.8 | 5.8 | 5.9 |
| Rental value, SEK/sqm | 2,081 | 1,920 | 2,089 |
Property portfolio
| Property units | Lettable area | Property value | Rental value | Occupancy rate | Contractual annual rental value | Net operating income | |||
|---|---|---|---|---|---|---|---|---|---|
| SEKm | SEK/sqm | SEKm | SEK/sqm | ||||||
| By property category | |||||||||
| Justice | 21 | 148 | 6,146 | 41,628 | 349.3 | 2,366 | 97.1 | 339.1 | 279.7 |
| Higher education | 24 | 198 | 7,193 | 36,240 | 409.5 | 2,063 | 98.7 | 404.0 | 337.6 |
| Health care | 13 | 60 | 2,523 | 41,839 | 119.1 | 1,975 | 99.6 | 118.6 | 104.0 |
| Other public sector | 31 | 72 | 1,783 | 24,835 | 125.5 | 1,748 | 97.2 | 122.0 | 92.8 |
| Non-public sector | 14 | 15 | 396 | 25,602 | 23.7 | 1,536 | 88.6 | 21.0 | 13.3 |
| Total/average property units under management | 103 | 494 | 18,042 | 36,544 | 1,027.2 | 2,081 | 97.8 | 1,004.8 | 827.5 |
| By region | |||||||||
| South | 17 | 201 | 8,039 | 40,018 | 427.0 | 2,126 | 97.4 | 416.0 | 357.9 |
| East | 30 | 136 | 5,428 | 40,059 | 310.4 | 2,291 | 96.8 | 300.5 | 239.3 |
| West | 22 | 79 | 2,209 | 27,788 | 135.9 | 1,710 | 99.5 | 135.3 | 106.5 |
| North | 34 | 78 | 2,366 | 30,399 | 153.8 | 1,976 | 99.4 | 152.9 | 123.8 |
| Total/average property units under management | 103 | 494 | 18,042 | 36,544 | 1,027.2 | 2,081 | 97.8 | 1,004.8 | 827.5 |
| Project properties | 4 | - | 2,607 | - | - | - | - | - | - |
| Total/average property portfolio | 107 | 494 | 20,649 | - | 1,027.2 | - | 97.8 | 1,004.8 | 827.5 |
The summary relates to the properties owned by Intea at the end of the period. The properties Stora Mørke 18 and Ringaren 6 in Skövde are 57%-owned and on an annual basis the minority's share of profit from property management is approximately SEK 10 million. Contractual annual rental value relates to contractual annual rent including rent supplements at the end of the period. The rental value refers to contractual annual rental value plus vacancies and discounts on an annual basis. Net operating income refers to contractual annual rental value less property expenses, including property administration, with property expenses for properties owned in the last 12 months included at actual cost, as well as properties acquired and projects completed in the last 12 months annualised. The assessments and assumptions underlying the information in this table are subject to uncertainties and should not be regarded as a forecast.
INTERIM REPORT JANUARY - MARCH 2023
This document is an in-house translation of the Swedish Interim report. In the event of discrepancies, the Swedish original will supersede the translation.
Projects and development
Intea works continuously to identify development opportunities within the existing property portfolio together with the tenants and to identify needs that create project development opportunities for new construction. The project unit consists of ten people with experience of a range of different stages and types of property development. Intea currently has projects, including new-builds and redevelopments, with an estimated total lettable area of approximately 168,000 sqm and total estimated investment of SEK 10,368 million. The New Kristianstad University project has been cancelled since the project development agreement is no longer valid.
The recognised property value of projects in progress is SEK 3,273.4 million, including project properties of SEK 2,607.3 million and investment property projects of SEK 272.2 million and recognised from associated companies of SEK 393.9 million. In addition, Intea's property portfolio includes unused development rights of approximately 83 sqm GFA (46) for existing properties. A building rights value of SEK 69.5 million (37.8) is included in the value of investment properties.
Investments in new-builds and redevelopments of SEK 417.3 million (111.2) were made in the existing property portfolio during the quarter.
Ongoing projects, share of estimated investment
Ongoing projects
| Projects | Municipality | Property category | Completion | Lettable area, sqm | Rental value, SEKm | Share public sector, % | Average contract period, years |
|---|---|---|---|---|---|---|---|
| Projects for which leases have been signed | By lease 1) | ||||||
| Jälla Forensic Psychiatry Clinic | Uppsala | Health care | Q4 2023 | 4,139 | 20.2 | 100 | 20.0 |
| Building 66 (Swedish Tax Agency, etc.) | Östersund | Other public sector | Q4 2023 | 6,750 | 14.3 | 72 | 6.0 |
| Regional command centre | Örebro | Justice | Q4 2023 | 12,282 | 32.5 | 100 | 15.0 |
| Justice Centre, Custody Unit | Kristianstad | Justice | Q2 2024 | 16,398 | 70.0 | 100 | 25.0 |
| Justice Centre, Police Station | Kristianstad | Justice | Q4 2024 | 19,438 | 57.6 | 100 | 15.0 |
| Optometry and audiology clinic | Linköping | Health care | Q4 2024 | 6,606 | 15.8 | 100 | 15.0 |
| Viskan Prison | Ånge | Justice | Q1 2025 | 14,272 | 54.1 | 100 | 20.0 |
| Depot 2 Falköping | Falköping | Other public sector | Q1 2025 | 5,362 | 26.0 | 100 | 25.0 |
| Total/average | 85,227 | 290.5 | 99 | 19.1 | |||
| Projects for which project development agreements have been signed | The company's estimate | ||||||
| Strömstad Police Station | Strömstad | Justice | Q1 2026 | 3,700 | 7.9 | 100 | 15.0 |
| Ystad Police Station | Ystad | Justice | Q3 2026 | 9,713 | 21.8 | 100 | 15.0 |
| Täby Police Station | Täby | Justice | Q1 2027 | 7,500 | 13.4 | 100 | 15.0 |
| Sahlgrenska Life2) | Gothenburg | Health care | Q1 2028 | 49,880 | 216.3 | 90 | 20.0 |
| Total/average | 70,793 | 259.4 | 92 | 19.2 | |||
| Other ongoing projects with leases or project development agreements | 12,321 | 113.7 | 100 | 15.0 | |||
| Total ongoing projects | 168,341 | 663.5 | 96 | 18.4 |
1) Includes changes since the lease was signed.
2) Intea owns 30 percent of the Sahlgrenska Life project and is entitled to acquire the remaining 70 percent. The investment amount includes the financing of the entire project and the acquisition of the 70 percent that Intea does not own. The investment is included in the balance sheet Items Investments in associated company and Receivable from associated company.
INTERIM REPORT JANUARY - MARCH 2023
This document is an in-house translation of the Swedish interim report. In the event of discrepancies, the Swedish original will supersede the translation.
INTERIM REPORT JANUARY – MARCH 2023
This document is an in-house translation of the Swedish Interim report. In the event of discrepancies, the Swedish original will supersede the translation.
Ongoing projects, property category
| By category | Lettable area | Rental value | Share public sector | Average contract period | Estimated net operating income | Investment, SEKm | Carrying amount | |
|---|---|---|---|---|---|---|---|---|
| Estimated | Spent | |||||||
| Justice | 95,604 | 371 | 100 | 17.5 | 352 | 4,567 | 1,384 | 2,326 |
| Higher education | - | - | - | - | - | - | - | - |
| Health care | 60,625 | 252 | 91 | 19.7 | 236 | 5,170 | 733 | 779^{1)} |
| Other public sector | 12,112 | 40 | 90 | 18.3 | 36 | 631 | 125 | 168 |
| Total/average ongoing projects | 168,341 | 664 | 96 | 18.4 | 625 | 10,368 | 2,242 | 3,273 |
Development rights, current local development plan – by area
| Gross area (GFA) | Lettable area | Carrying amount | ||
|---|---|---|---|---|
| 000 sqm | 000 sqm | SEKm | SEK/sqm GFA | |
| Garnisonen, Linköping | 12.5 | 10.6 | 11.3 | 900 |
| Campus area, Östersund | 21.4 | 18.2 | 3.2 | 150 |
| University area, Halmstad | 41.4 | 35.2 | 53.3 | 1,287 |
| Other | 7.6 | 6.5 | 1.8 | 234 |
| Total | 82.9 | 70.5 | 69.5 | 838 |
Information about ongoing projects and unused development rights in the interim report is based on estimates of size, focus and scope, and when projects are expected to start and be completed. Furthermore, the information is based on estimates of future project costs and rental value. Estimates and assumptions should not be regarded as a forecast.
Estimates and assumptions involve uncertainties regarding the implementation, design and size of projects, timetables, project costs and future rental value. Information about ongoing construction and planned projects is regularly reviewed and estimates and assumptions are adjusted as a result of the completion or addition of ongoing construction and changes in conditions.
The valuation of ongoing projects varies depending on the stage of the project and the risk that the project will not meet the financial calculations underlying the project's implementation. The decisive factors are whether the project includes land with a right of disposal, a signed lease, an adopted local development plan and a granted building permit. Early-stage ongoing projects without signed leases are valued on the basis of the carrying amount of the costs incurred
plus the estimated market value of the development rights/potential development rights.
Development rights consist of land or the right to land and the associated local development plan. A potential development right includes an ongoing process for a new or amended local development plan. Development rights and potential development rights are valued at an estimated fair value equal to a price that would be received in a sales transaction arranged under current market conditions. The starting point for calculating the value of the development rights is the market value of the building if the legally valid local development plan had been in place. If the local development plan has not gained legal approval, the value is an assessed value of development rights that have gained legal force, less uncertainties in the planning process and development costs that are likely to be borne by the property owner.
1) Refers to the current carrying amount of the project, including, where applicable, the accumulated unrealised change in value. For extension or redevelopment projects, the carrying amount is attributable to the project.
2) Including accrued project costs in Sahlgrenska Life that are included in receivables from associated companies.
Property values and valuations
Changes in the value of properties during the period amounted to SEK 73.5 million (96.0), mainly attributable to changes in the value of ongoing projects of SEK 94.2 million and a change in net operating income of SEK -20.7 million; see page 12 for more information. The company's valuation principles are set out on page 24. The initial yield requirement was 4.7 percent (4.3). The weighted discount rate to calculate the present value of cash flow and residual value was 6.2 percent (4.4).
Acquisitions and transactions, January - March
There were no acquisitions of investment properties during the period. See the Intea Kraft section on page 9 for information about the acquisition of hydropower plants.
Change in property value by quarter, SEKm
Changes in property value
| SEKm | Number properties | |
|---|---|---|
| Carrying amount 1 January 2023 | 20,158 | 37 |
| Acquisitions | - | |
| Investments in new-builds, extensions and redevelopment | 417 | |
| Changes in value | 74 | |
| Carrying amount at end of period, of which | 20,649 | 37 |
| Investment properties, excl. ongoing projects and development rights | 17,700 | |
| Ongoing projects | 2,879 | |
| Unused development rights | 70 | |
| Closing property value 31 March 2023 | 20,649 |
Yield
| Amounts in SEKm | 31 Mar 2023 | 31 Mar 2022 |
|---|---|---|
| Investment properties | 20,649 | 18,260 |
| Development rights and ongoing projects | -2,949 | -1,790 |
| Property value excl. development rights and ongoing projects | 17,700 | 16,470 |
| Net operating income, earnings capacity | 827 | 709 |
| Yield, % | 4.7 | 4.3 |
Rendering of the regional command centre (RCC) under construction in Örebro, Sweden
INTERIM REPORT JANUARY - MARCH 2023
This document is an in-house translation of the Swedish interim report. In the event of discrepancies, the Swedish original will supersede the translation.
INTEA KRAFT
Since its inception, Intea has aimed to ensure that sustainability permeates every aspect of the organisation. A central part of Intea's sustainability focus is to reduce CO2 emissions, where the company's goal is to do this by reducing energy use as far as possible and by increasing the share of self-generated green electricity.
After the acquisition of nine hydropower plants in February 2023, Intea owns a total of 12 hydropower plants. These are mainly located in electricity zone 3, in the towns of Bankeryd, Bollebygd, Falun, Knäred and Kungsbacka. As a result of its portfolio of hydropower assets Intea is now self-sufficient in renewable electricity. All of the Group's electricity production from hydroelectric power is gathered
under the company Intea Kraft AB. Intea Kraft provides the Group with a platform of expertise to optimise the management and further development of electricity generation within the Group. Total annual electricity production is estimated at 11.5 GWh and the total carrying amount is SEK 131.1 million as at 31 March 2023.
The production managed by Intea Kraft and from the solar panel systems on Intea's properties equates to approximately 103 percent of the Group's electricity consumption. The aim is for the electricity generation to continue to grow in line with Intea's acquisitions and completion of the project portfolio in the coming years.
| Key performance indicators: hydropower plants | 31 March 2023 |
|---|---|
| Number of hydropower plants | 12 |
| Land area, 000 sqm | 713 |
| Estimated annual production, GWh | 11.5 |
| Installed capacity, MW | 4.0 |
| Carrying amount as at 31 March 2022, SEK million | 131.1 |
Álgirda hydropower plant in Kungsbacka, Sweden
INTERIM REPORT JANUARY - MARCH 2023
This document is an in-house translation of the Swedish interim report. In the event of discrepancies, the Swedish original will supersede the translation.
INTEA'S TENANTS
Through long-term leases with public-sector tenants, Intea creates predictable income with limited risk over time. The share of income from public-sector tenants at the end of the period was 94.8 percent (94.8) and the remaining contractual term was 5.8 years (5.9). Of Intea's total contractual rental value, 85 percent is adjusted using the CPI with an annual indexation of 83 percent on average. One percent is adjusted by fixed indexation ranging from 1 to 5 percent per year and 14 percent of the total contractual annual rental value is not adjusted by indexation. The company's five largest tenants are the Swedish Police, the Swedish Prison and Probation Service, Linnaeus University in Kalmar, Halmstad University and Region Skåne. The Swedish Police and the Swedish Prison and Probation Service are tenants in several locations and together, they account for a total of 56 leases. The remaining contract period varies between contracts.
Largest tenants at 31 March 2023
| Contractual annual rental value, SEKm | Share¹ | Remaining contract period, years | |
|---|---|---|---|
| Swedish Police | 168.4 | 16.8 | 3.9 |
| Swedish Prison and Probation Service | 99.7 | 9.9 | 12.6 |
| Linnaeus University, Kalmar | 93.8 | 9.3 | 6.3 |
| Halmstad University | 82.8 | 8.2 | 6.3 |
| Region Skåne | 71.1 | 7.1 | 10.2 |
| Malmö University | 58.8 | 5.9 | 2.4 |
| Mid Sweden University | 53.5 | 5.3 | 3.8 |
| Kristianstad University | 49.9 | 5.0 | 4.2 |
| University of Skövde | 33.5 | 3.3 | 5.3 |
| Swedish National Courts Administration | 31.9 | 3.2 | 3.9 |
| Other public sector | 209.4 | 20.8 | 4.2 |
| Total public sector | 952.9 | 94.8 | 5.8 |
Lease maturity structure at 31 March 2023
| Leases number | Lettable area, 000 sqm | Contractual annual rental value, SEKm | Share² | |
|---|---|---|---|---|
| Public sector, maturity | ||||
| 2023 | 37 | 3 | 3.4 | 0.3 |
| 2024 | 77 | 39 | 65.7 | 6.5 |
| 2025 | 46 | 92 | 193.4 | 19.2 |
| 2026 | 49 | 62 | 131.6 | 13.1 |
| 2027 | 18 | 48 | 78.9 | 7.8 |
| >2027 | 60 | 195 | 480.0 | 47.8 |
| Total public sector | 287 | 437 | 952.9 | 94.8 |
| Non-public sector | 197 | 33 | 51.9 | 5.2 |
| Total | 484 | 470 | 1,004.8 | 100.0 |
Tenants by category at 31 March 2023
| Tenant category | Lettable area | Leased area | Rental value | Contractual annual rental value, SEKm | Remaining contract period, years |
|---|---|---|---|---|---|
| 000 sqm | 000 sqm | SEKm | |||
| Justice | 133 | 131 | 326.2 | 324.5 | 6.6 |
| Higher education | 176 | 176 | 372.6 | 372.4 | 5.0 |
| Health care | 55 | 54 | 114.9 | 114.1 | 7.8 |
| Other public sector | 82 | 78 | 145.0 | 141.8 | 4.4 |
| Total public sector | 446 | 438 | 958.7 | 952.9 | 5.8 |
| Non-public sector | 48 | 32 | 68.4 | 51.9 | 3.0 |
| Total | 494 | 470 | 1,027.2 | 1,004.8 | 5.6 |
¹ Share of total contractual annual rental value.
Rental value - share by location
INTERIM REPORT JANUARY - MARCH 2023
This document is an in-house translation of the Swedish interim report. In the event of discrepancies, the Swedish original will supersede the translation.
PERFORMANCE OF THE BUSINESS
The improvement in earnings for the period January – March 2023 compared with the corresponding period the previous year is largely attributable to the acquisition of the properties Rönneholm 6:2 in Eslöv, Stora Mörke 18 and Ringaren 6 in Skövde and the completion of the former project property Duvan 1 in Härnösand.
Rental income
Rental income amounted to SEK 258.6 million (231.9), of which SEK 11.7 million (29.7) relates to invoicing other than contractual annual rental value. The 11.5 percent increase compared with the corresponding period the previous year can be attributed to index adjustments, completed acquisitions, completed projects, lettings and re-invoicing of utility costs and property tax as a result of increased costs.
Income for a like-for-like portfolio amounted to SEK 234.4 million (217.3), an increase of 7.9 percent, mainly due to indexation and lettings, as well as re-invoiced utility costs and property tax. One-off compensation during the corresponding period of the previous year relates to the removal and refurbishment of premises of SEK 15.9 million. The economic occupancy rate was 97.8 percent (97.9) at 31 March 2023.
Property expenses
Property expenses amounted to SEK 51.2 million (47.3) for the period. Direct property expenses for a like-for-like portfolio amounted to SEK 44.5 million (35.1), an increase of 26.9 percent, mainly driven by increased electricity prices, property tax and property maintenance costs. Non-recurring costs during the corresponding period of the previous year of SEK 10.3 million relate to the refurbishment of premises, where the tenant reimbursed the corresponding amount included in rental income. Property expenses for project properties amounted to SEK 1.1 million and acquired properties amounted to SEK 2.7 million.
Net operating income
Net operating income increased to SEK 207.4 million (184.4). The total surplus ratio increased to 80.2 percent (79.3). The surplus ratio for a like-for-like portfolio was 80.5 percent (80.2).
Change in rental income
| Amounts in SEKm | Jan – Mar 2023 | Jan – Mar 2022 | Change, % |
|---|---|---|---|
| Like-for-like portfolio | 234.4 | 217.3 | 7.9 |
| One-off payments | - | 15.9 | |
| Project properties | 8.7 | - | |
| Acquired properties | 13.2 | - | |
| Other | 2.3 | -1.2 | |
| Rental income | 258.6 | 231.9 | 11.5 |
Change in property expenses
| Amounts in SEKm | Jan – Mar 2023 | Jan – Mar 2022 | Change, % |
|---|---|---|---|
| Like-for-like portfolio | 44.5 | 35.1 | 26.9 |
| Non-recurring costs | - | 10.3 | |
| Project properties | 1.1 | - | |
| Acquired properties | 2.7 | - | |
| Other | 1.2 | 0.8 | |
| Direct property expenses | 48.5 | 46.2 | 7.0 |
| Property administration | 1.7 | 1.3 | |
| Property expenses | 51.2 | 47.5 | 7.7 |
| Key performance indicators for the business | Jan – Mar 2023 | Jan – Mar 2022 | full year 2023 |
| --- | --- | --- | --- |
| Rental income, SEKm | 258.6 | 231.9 | 918.3 |
| Net operating income, SEKm | 207.4 | 184.4 | 738.7 |
| Surplus ratio, % | 80.2 | 79.5 | 80.4 |
| Profit from property management, SEKm | 135.4 | 135.4 | 497.4 |
| Changes in the value of properties, SEKm | 73.5 | 96.0 | 143.2 |
| Changes in the value of derivatives, SEKm | -92.5 | 309.1 | 639.3 |
| Tax, SEKm | -43.5 | -140.2 | -374.3 |
| Profit/loss for the period, SEKm | 72.9 | 400.3 | 905.6 |
For the basis of the key performance indicators and definitions, see pages 26–29.
INTERIM REPORT JANUARY – MARCH 2023
This document is an in-house translation of the Swedish interim report. In the event of discrepancies, the Swedish original will supersede the translation.
Central expenses
Central expenses include acquisition and business development activities, as well as administration, accounting, finance and management functions. Central expenses during the period amounted to SEK 13.1 million (13.4).
Finance income and expenses
Financial income and expenses totalled SEK -58.9 million (-35.6). The increase is partly due to a higher average interest rate and partly to a higher volume of loans due to investments in the project portfolio.
The Group's average interest rate on external borrowings was 2.78 percent (1.49) at the end of the period. The interest rate excluding unutilised credit facilities was 2.74 percent (1.44).
Profit from property management
Profit from property management totalled SEK 135.4 million (135.4) for the period.
Profit before tax, taxes and profit for the period
Profit before tax of SEK 116.4 million (540.5) was positively impacted by changes in the value of properties of SEK 73.5 million (96.0), mainly driven by an increase in the value of project properties of SEK 94.2 million and a change in net operating income of SEK -20.7 million. Unrealised changes in the value of derivatives amounted to SEK -92.5 million (309.1), driven by new derivatives and falling long-term interest rates. The Group recognised a tax expense of SEK 43.5 million (140.2) for the period, including SEK 27.6 million (111.9) that relates to a change in deferred tax.
Deferred tax liabilities amounted to SEK 1,362.2 million (1,334.7). The change is mainly attributable to changes in the value of properties and derivatives, as well as tax-related depreciation on investment properties.
Profit for the period after tax amounted to SEK 72.9 million (400.3), of which non-controlling interests amounted to SEK 2.5 million (0.0).
Cash flow
Cash flow from operating activities amounted to SEK 138.5 million (97.0). The increase compared with the corresponding period the previous year is mainly related to an improvement in working capital.
Investing activities impacted cash flow by SEK -808.7 million (-295.1) in the form of investments in existing properties and projects, changes in non-current receivables and acquisitions of hydropower plants. The increase in non-current receivables largely consists of loans to associated company.
Financing activities had an impact on cash flow of SEK 634.7 million (199.5), mainly attributable to newly raised loans and certificates, repayment of loans, and dividends on Class D shares.
Total cash flow for the period amounted to SEK -35.5 million (1.4) and cash and cash equivalents amounted to SEK 179.2 million (214.7) at 31 March 2023.
Rental income, net operating income and profit from property management, SEKm²)
Changes in the value of properties
| Amounts in SEKm | Jan - Mar 2023 | Jan - Mar 2022 |
|---|---|---|
| Change in net operating income | -20.7 | 11.7 |
| Projects | 94.2 | 84.3 |
| Change in the yield requirement/discount rate | - | - |
| Acquisitions | - | - |
| Changes in the value of properties | 73.5 | 96.0 |
1) Excluding interest on shareholder loan in 2021 and cost of termination of advisory agreement in Q2 2021.
INTERIM REPORT JANUARY - MARCH 2023
This document is an in-house translation of the Swedish Interim report. In the event of discrepancies, the Swedish original will supersede the translation.
FINANCING
Shareholder equity
Shareholder equity at 31 March 2023 amounted to SEK 9,033.8 million (8,990.0) of which non-controlling interests amount to SEK 306.1 million (303.6). The long-term net asset value attributable to Class A and Class B shares at the end of the period amounted to SEK 7,577.1 million (7,415.8) corresponding to SEK 51.12 (50.03) per share. The long-term net asset value of the Class D shares at the end of the period was SEK 1,916.4 million, corresponding to SEK 33.00 per Class D share.
Interest-bearing liabilities
Intea's external borrowings include bonds, commercial paper and secured bank loans. There are also additional credit commitments as back-up facilities, totalling SEK 5,200.0 million, of which SEK 2,500.0 million matures in 2024, SEK 1,200.0 million matures in 2026 and SEK 1,500.0 million matures in 2027. The Group's non-current interest-bearing liabilities totalled SEK 7,709.2 million (7,858.2) at the end of the period. The non-current liabilities consist of bond loans totalling SEK 2,750.0 million, of which SEK 1,550.0 million matures in 2025, SEK 1,200.0 million matures in 2026, and four secured
loans of SEK 850.0 million, SEK 455.0 million, SEK 299.2 million and SEK 410.0 million maturing in the years 2024, 2027, 2030 and 2037, as well as utilised backup facilities (secured bank loan) of SEK 2,945.0 million. Current interest-bearing liabilities amounted to SEK 3,529.0 million (2,715.0) and consist of a secured bank loan of SEK 100.0 million, as well as utilised backup facilities (secured bank loan) of SEK 500.0 million, bond loans totalling SEK 1,650.0 million, of which SEK 1,350.0 million matures in 2023 and SEK 300.0 million matures in 2024, and commercial paper of SEK 1,279.0 million with maturity dates throughout the year. In addition, there are unutilised backup facilities of SEK 1,755.0 million (2,500.0). After the end of the reporting period, a bond for SEK 450.0 million maturing in September 2023 was repurchased, which is why the remaining amount maturing in September 2023 as of the date of publication of the report is SEK 900.0 million. See the section on significant events after the end of the period for further information.
| Financial key performance indicators | Finance policy | Jan - Mar 2023 | Jan - Mar 2022 | full year 2022 |
|---|---|---|---|---|
| Interest-bearing liabilities, SEKm | - | 11,238 | 10,040 | 10,573 |
| Net debt, SEKm | - | 11,059 | 9,841 | 10,359 |
| Equity/assets ratio, % | - | 40.4 | 39.4 | 41.7 |
| Loan-to-value ratio, % | < 60 | 52.2 | 53.6 | 51.0 |
| Share of secured debt, % | < 30 | 24.9 | 12.0 | 24.2 |
| Interest coverage ratio, multiple | > 2.0 | 3.4 | 5.0 | 3.9 |
| Capital commitment, years | > 2.0 | 2.5 | 3.0 | 2.3 |
| Fixed-rate period, years | > 2.0 | 3.0 | 4.0 | 3.0 |
| Average interest rate, % | - | 2.78 | 1.49 | 2.53 |
| Average interest rate excl. unutilised credit facilities, % | - | 2.74 | 1.44 | 2.48 |
| Average interest rate, excl. interest rate derivatives, % | - | 4.35 | 1.12 | 3.59 |
| Fair value of derivatives, SEKm | - | 596 | 359 | 689 |
Capital structure
Interest-bearing liabilities and average interest rate, SEKm and %
1) Excluding shareholder loans in 2021.
INTERIM REPORT JANUARY - MARCH 2023
This document is an in-house translation of the Swedish interim report. In the event of discrepancies, the Swedish original will supersede the translation.
The loan-to-value ratio at the end of the period was 52.2 percent (51.0). At 31 March 2023, the average capital commitment period was 2.5 years (2.3) and the average fixed interest term was 3.0 years (3.0). The average interest rate was 2.78 percent (1.49). The interest rate on external borrowings excluding unutilised credit facilities was 2.74 percent (1.44). A one percentage point rise in short-term market rates would increase Intea's average borrowing rate by +0.27 percent (+0.36) and finance costs by SEK 29.8 million (35.8) on an annual basis. The interest coverage ratio was 3.4x (5.0).
Intea has a long-term rating of BBB+ with a negative outlook from Nordic Credit Rating AS. Moreover, the company has a short-term rating of N3. The credit ratings apply to both secured and unsecured debt.
Interest-rate derivatives
Derivative instruments, mainly in the form of interest rate swap contracts, are used to reduce Intea's interest rate exposure. At 31 March 2023, there were derivative contracts with a nominal amount of SEK 7,800 million (6,000). These represent interest rate swaps where variable interest rates are exchanged for a fixed interest rate, of which SEK 2,000 also have an option for the counter party to extend the contract on unchanged terms for an additional number of years. Interest expense is recognised as incurred in the line "Interest expense" and changes in fair value are recognised under the heading "Changes in value" after "Profit from property management". Unrealised changes in the value of the derivatives amounted to SEK -92.5 million (309.1) during the period.
Interest rate maturity structure as at 31 March 2023, including derivatives
| Maturity | Average interest rate | Average fixed-rate period | |
|---|---|---|---|
| SEKm | % | year | |
| 0-1 year | 2,983 | 4,40 | 0.3 |
| 1-2 years | 800 | 1.39 | 1.4 |
| 2-3 years | 1,500 | 3.30 | 2.1 |
| 3-4 years | 1,500 | 2.21 | 3.2 |
| 4-5 years | 955 | 1.67 | 4.0 |
| >5 years | 3,500 | 1.90 | 5.0 |
| Total/average | 11,238 | 2.74 | 3.0 |
| Unutilised credit facilities | 1,755 | 0.28 | - |
| Total including unutilised credit facilities | 12,993 | 2.78 | 3.0 |
Loan maturity structure at 31 March 2023, SEKm
| Credit agreements | Bank | MTN/Cert | Total interest-bearing liabilities | Unutilised loans | Total available loans |
|---|---|---|---|---|---|
| 0-1 year | 600 | 2,929 | 3,529 | - | 3,529 |
| 1-2 years | 2,105 | 300 | 2,405 | 745 | 3,150 |
| 2-3 years | 0 | 1,250 | 1,250 | 510 | 1,760 |
| 3-4 years | 690 | 1,200 | 1,890 | 500 | 2,390 |
| 4-5 years | 1,455 | 0 | 1,455 | - | 1,455 |
| >5 years | 709 | 0 | 709 | - | 709 |
| Total | 5,559 | 5,679 | 11,238 | 1,755 | 12,993 |
Interest rate derivatives - Group
| Variable interest rate | Fixed interest rate | Nominal amount | Fair value | |
|---|---|---|---|---|
| % | % | SEKm | SEKm | |
| 2024 | 3.36 | 0.35 | 800 | 35.1 |
| 2025 | 3.36 | 2.25 | 1,500 | -4.6 |
| 2026 | 3.36 | 1.16 | 1,500 | 78.1 |
| 2027 | 3.36 | 0.18 | 500 | 54.1 |
| 2028 | 3.36 | 0.93 | 1,000 | 101.8 |
| 2029 | 3.36 | 0.61 | 500 | 64.0 |
| 2030 | 3.36 | 0.32 | 500 | 79.8 |
| 2031 | 3.36 | 0.80 | 500 | 72.4 |
| 2032 | 3.36 | 1.33 | 1,000 | 115.7 |
| Total | 7,800 | 596.4 |
Loan-to-value ratio, capital commitments and fixed-interest period, % and x¹)
¹) Excluding shareholder loans.
INTERIM REPORT JANUARY - MARCH 2023
This document is an in-house translation of the Swedish interim report. In the event of discrepancies, the Swedish original will supersede the translation.
QUARTERLY OVERVIEW
Income statement
| Amounts in SEKm | 01 2023 | 04 2022 | 03 2022 | 02 2022 | 01 2022 | 04 2021 | 03 2021 | 02 2021 | 01 2021 |
|---|---|---|---|---|---|---|---|---|---|
| Rental income | 258.6 | 243.6 | 221.7 | 221.0 | 231.9 | 193.5 | 185.5 | 188.4 | 165.9 |
| Property expenses | -51.2 | -54.9 | -37.7 | 39.5 | -47.5 | -38.7 | -27.1 | -27.6 | -30.9 |
| Net operating income | 207.4 | 188.7 | 184.0 | 181.5 | 184.4 | 154.8 | 158.4 | 160.8 | 135.0 |
| Central expenses | -13.1 | -20.6 | -15.0 | -14.6 | -13.4 | -14.5 | -18.7 | -189.0^{1} | -18.7 |
| Profit/loss before financial items | 194.3 | 168.1 | 169.1 | 166.9 | 171.0 | 140.3 | 139.7 | -28.2 | 116.3 |
| Finance income and expenses | -59.0 | -54.4 | -46.3 | -41.3 | -35.6 | -33.8 | -31.1 | -71.0 | -65.1 |
| Profit from property management | 135.4 | 113.7 | 122.8 | 125.5 | 135.4 | 106.5 | 108.6 | -99.3 | 51.2 |
| Change in value of investment properties | 73.5 | 7.6 | -38.1 | 77.8 | 96.0 | 619.9 | 1,044.4 | 265.2 | 277.6 |
| Change in value of derivative instruments | -92.5 | -25.7 | 101.1 | 254.8 | 309.1 | 37.0 | 29.2 | 3.5 | 57.2 |
| Profit before tax | 116.4 | 95.5 | 185.7 | 458.1 | 540.5 | 763.5 | 1,182.2 | 169.5 | 386.0 |
| Tax | -43.5 | -56.2 | -63.9 | 113.9 | -140.2 | -141.6 | -255.1 | -44.6 | -90.3 |
| Profit/loss for the period | 72.9 | 39.3 | 121.8 | 344.2 | 400.3 | 621.8 | 927.1 | 124.8 | 295.7 |
| of which attributable to shareholders of the parent | 70.4 | 37.3 | 121.8 | 344.2 | 400.3 | 621.8 | 927.1 | 124.8 | 295.7 |
| of which non-controlling interests | 2.5 | 2.0 | - | - | - | - | - | - | - |
Balance sheet
| Amounts in SEKm | 01 2023 | 04 2022 | 03 2022 | 02 2022 | 01 2022 | 04 2021 | 03 2021 | 02 2021 | 01 2021 |
|---|---|---|---|---|---|---|---|---|---|
| Investment properties | 20,648.7 | 20,157.7 | 19,729.2 | 18,642.9 | 18,260.1 | 17,797.4 | 14,568.1 | 13,411.4 | 12,955.7 |
| Site leasehold, right-of-use asset | 109.0 | 109.0 | 109.0 | 109.0 | 109.0 | 122.8 | - | - | - |
| Other non-current assets | 136.7 | 25.3 | 25.5 | 25.0 | 9.4 | 5.3 | 3.1 | 2.9 | 1.3 |
| Investments in associated company | 3.3 | 3.2 | 3.2 | 3.2 | 2.3 | 2.3 | 2.0 | 2.0 | 1.3 |
| Receivable from associated company | 399.9 | 130.0 | 122.0 | 102.5 | 88.3 | 63.2 | 45.9 | - | - |
| Derivatives | 596.4 | 688.9 | 714.7 | 613.6 | 358.8 | 49.7 | 12.7 | - | - |
| Right-of-use assets | 27.3 | 28.2 | 30.4 | 32.5 | 34.7 | 35.2 | - | - | - |
| Other non-current receivables | 3.8 | 3.8 | 3.8 | 3.8 | 3.8 | 94.3 | 93.8 | 45.5 | 34.3 |
| Current receivables | 229.9 | 189.6 | 223.9 | 212.9 | 190.7 | 171.0 | 211.2 | 223.0 | 186.4 |
| Cash and cash equivalents | 179.2 | 214.7 | 303.0 | 212.4 | 199.1 | 197.7 | 150.6 | 253.1 | 145.8 |
| Total assets | 22,334.2 | 21,550.4 | 21,264.6 | 19,957.9 | 19,256.2 | 18,538.9 | 15,087.4 | 13,937.9 | 13,324.8 |
| Shareholder equity | 8,727.7 | 8,686.5 | 8,678.0 | 8,581.6 | 7,581.6 | 7,206.5 | 6,334.8 | 2,361.0 | 2,435.9 |
| Non-controlling interests | 306.1 | 303.6 | 301.6 | - | - | - | - | - | - |
| Deferred tax liability | 1,362.2 | 1,334.7 | 1,205.2 | 1,166.6 | 1,082.6 | 970.8 | 821.1 | 601.4 | 530.6 |
| Derivatives | - | - | - | - | - | - | - | 16.5 | 20.0 |
| Liabilities to shareholders | - | - | - | - | - | - | - | 2,805.4 | 2,805.4 |
| Interest-bearing liabilities | 11,238.2 | 10,573.2 | 10,459.4 | 9,631.3 | 10,040.4 | 9,814.4 | 7,568.5 | 7,467.5 | 7,219.8 |
| Lease liabilities | 123.7 | 125.4 | 127.2 | 129.0 | 130.8 | 143.2 | - | - | - |
| Other liabilities | 576.4 | 527.1 | 493.1 | 449.3 | 420.8 | 399.1 | 363.0 | 686.1 | 313.2 |
| Total equity and liabilities | 22,334.2 | 21,550.4 | 21,264.6 | 19,957.9 | 19,256.2 | 18,538.9 | 15,087.4 | 13,937.9 | 13,324.8 |
1) Including one-off costs related to restructuring.
INTERIM REPORT JANUARY - MARCH 2023
This document is an in-house translation of the Swedish Interim report. In the event of discrepancies, the Swedish original will supersede the translation.
16
Key performance indicators
| Q1 2023 | Q4 2022 | Q5 2022 | Q2 2022 | Q1 2022 | Q4 2021 | Q5 2021 | Q2 2021 | Q1 2021 | |
|---|---|---|---|---|---|---|---|---|---|
| Property and operational key performance indicators | |||||||||
| Yield, % | 4.7 | 4.7 | 4.3 | 4.3 | 4.3 | 4.4 | 4.7 | 4.8 | 4.8 |
| Economic occupancy rate, % | 97.8 | 97.9 | 97.5 | 97.8 | 98.5 | 99.0 | 98.5 | 98.4 | 98.7 |
| Surplus ratio, % | 80.2 | 77.5 | 83.0 | 82.1 | 79.5 | 80.0 | 85.4 | 85.3 | 81.4 |
| Share of public-sector tenants, % | 94.8 | 94.8 | 95.1 | 94.9 | 93.4 | 94.0 | 92.4 | 92.5 | 91.3 |
| Remaining contract period, years | 5.8 | 5.9 | 6.0 | 6.0 | 5.8 | 6.0 | 5.7 | 5.8 | 6.1 |
| Financial key performance indicators | |||||||||
| Loan-to-value ratio¹), % | 52.2 | 51.0 | 51.1 | 50.2 | 53.6 | 53.8 | 50.9 | 53.8 | 54.6 |
| Interest coverage ratio, multiple | 3.4 | 3.1 | 3.7 | 4.1 | 5.0 | 4.3 | 4.5 | -1.0²) | 4.1 |
| Average interest rate, % | 2.78 | 2.53 | 2.00 | 1.71 | 1.49 | 1.31 | 1.60 | 1.51 | 1.63 |
| Equity/assets ratio, % | 40.4 | 41.7 | 40.8 | 43.0 | 39.4 | 38.9 | 42.0 | 37.1 | 39.3 |
| Share-related key performance indicators | |||||||||
| Adjusted long-term net asset value per Class A and Class B share, SEK | 51.12 | 50.03 | 48.92 | 48.70 | 48.16 | 46.87 | 41.50 | 33.16 | 33.22 |
| Adjusted profit from property management per Class A and Class B share, SEK | 0.72 | 0.57 | 0.66 | 0.73 | 0.80 | 0.62 | 0.63 | 0.67 | 0.55 |
¹) The definition of the loan-to-value ratio has changed from Q4 2022. The change means that shares in associated companies, receivables from associated companies and other fixed assets have been included in the calculation base.
²) Including one-off costs related to restructuring.
INTERIM REPORT JANUARY – MARCH 2023
This document is an in-house translation of the Swedish Interim report. In the event of discrepancies, the Swedish original will supersede the translation.
FINANCIAL REPORTS
Consolidated income statement
| Amounts in SEKm | Jan – Mar 2023 | Jan – Mar 2022 | April 2022 – Mar 2023 | full year 2022 |
|---|---|---|---|---|
| Rental income | 258.6 | 231.9 | 945.0 | 918.3 |
| Property expenses, of which | -51.2 | -47.5 | -183.3 | -179.6 |
| Operating costs | -38.4 | -26.3 | -124.7 | -112.6 |
| Maintenance costs | -6.2 | -15.7 | -32.1 | -41.6 |
| Property tax | -4.9 | -4.2 | -20.3 | -19.6 |
| Rental and property administration | -1.7 | -1.3 | -6.2 | -5.8 |
| Net operating income | 207.4 | 184.4 | 761.7 | 738.7 |
| Central expenses | -13.1 | -13.4 | -63.2 | -63.5 |
| Profit/loss before financial items | 194.3 | 171.0 | 698.5 | 675.2 |
| Finance income | 3.1 | 1.9 | 5.8 | 4.6 |
| Interest expense | -61.0 | -36.2 | -202.9 | -178.1 |
| Interest expense on site leasehold, right-of-use assets | -1.0 | -1.3 | -3.9 | -4.2 |
| Profit from property management | 135.4 | 135.4 | 497.5 | 497.4 |
| Changes in value | ||||
| Investment properties | 73.5 | 96.0 | 120.7 | 143.2 |
| Unrealised derivative instruments | -92.5 | 309.1 | 237.6 | 639.3 |
| Profit before tax | 116.4 | 540.5 | 855.8 | 1,279.9 |
| Tax | -43.5 | -140.2 | -277.6 | -374.3 |
| Profit/loss for the period | 72.9 | 400.3 | 578.2 | 905.6 |
| Profit for the period attributable to: | ||||
| Shareholders of the parent | 70.4 | 400.3 | 573.7 | 903.6 |
| Non-controlling interests^{1)} | 2.5 | - | 4.5 | 2.0 |
| Profit/loss for the period | 72.9 | 400.3 | 578.2 | 905.6 |
| Earnings per Class A and Class B share^{2)} | 0.28 | 2.72 | 3.19 | 5.58 |
| Earnings per Class D share^{1)} | 0.50 | 0.50 | 1.80 | 1.93 |
Profit for the period is in line with comprehensive income for the period.
1) The properties Stora Märke 18 and Ringaren 6 in Skövde are 57-percent owned.
2) No diluting instruments exist.
INTERIM REPORT JANUARY – MARCH 2023
This document is an in-house translation of the Swedish interim report. In the event of discrepancies, the Swedish original will supersede the translation.
Consolidated balance sheet
| Amounts in SEKm | 31 Mar 2023 | 31 Mar 2022 | 31 Dec 2022 |
|---|---|---|---|
| Assets | |||
| Investment properties | 20,648.7 | 18,260.1 | 20,157.7 |
| Site leasehold, right-of-use asset | 109.0 | 109.0 | 109.0 |
| Other non-current assets | 136.7 | 9.4 | 25.3 |
| Investments in associated company | 3.3 | 2.3 | 3.2 |
| Receivable from associated company | 399.9 | 88.3 | 130.0 |
| Derivatives | 596.4 | 358.8 | 688.9 |
| Right-of-use assets | 27.3 | 34.7 | 28.2 |
| Other non-current receivables | 3.8 | 3.8 | 3.8 |
| Total non-current assets | 21,925.1 | 18,866.4 | 21,146.1 |
| Current receivables | 229.9 | 190.7 | 189.6 |
| Cash and cash equivalents | 179.2 | 199.1 | 214.7 |
| Total current assets | 409.1 | 389.8 | 404.3 |
| Total assets | 22,334.2 | 19,256.2 | 21,550.4 |
| Equity and liabilities | |||
| Shareholder equity | |||
| Share capital | 22.9 | 20.9 | 22.9 |
| Other contributed capital | 4,882.0 | 4,134.0 | 4,882.0 |
| Retained earnings, including profit for the period | 3,822.8 | 3,426.7 | 3,781.5 |
| Equity attributable to shareholders of the parent | 8,727.7 | 7,581.6 | 8,686.4 |
| Non-controlling interests^{b} | 306.1 | - | 303.6 |
| Total shareholders' equity | 9,033.8 | 7,581.6 | 8,990.0 |
| Non-current liabilities | |||
| Deferred tax liability | 1,362.2 | 1,082.6 | 1,334.7 |
| Interest-bearing liabilities | 7,709.2 | 5,720.4 | 7,858.2 |
| Lease liability | 123.7 | 130.8 | 125.4 |
| Provisions | 2.7 | 7.3 | 2.7 |
| Total non-current liabilities | 9,197.8 | 6,941.1 | 9,321.0 |
| Current liabilities | |||
| Interest-bearing liabilities | 3,529.0 | 4,320.0 | 2,715.0 |
| Other liabilities | 573.6 | 413.5 | 524.4 |
| Total current liabilities | 4,102.6 | 4,733.5 | 3,239.4 |
| Total equity and liabilities | 22,334.2 | 19,256.2 | 21,550.4 |
1) The properties Stora Mørke 18 and Ringaren 6 are 57-percent owned.
INTERIM REPORT JANUARY - MARCH 2023
This document is an in-house translation of the Swedish interim report. In the event of discrepancies, the Swedish original will supersede the translation.
Consolidated statement of changes in equity
| Amounts in SEKm | Share capital | Other contributed capital | Retained earn- ingr. incl. profit for the period | Equity attributable to shareholders of the parent | Non-controlling interests | Total equity |
|---|---|---|---|---|---|---|
| Opening shareholders' equity at 1 Jan 2022 | 20.9 | 4,134.0 | 3,051.6 | 7,206.5 | - | 7,206.5 |
| Profit/loss for the period | - | - | 400.3 | 400.3 | - | 400.3 |
| Dividend | - | - | -25.2 | -25.2 | - | -25.2 |
| Closing shareholder equity at 31 March 2022 | 20.9 | 4,134.0 | 3,426.7 | 7,581.6 | - | 7,581.6 |
| Opening shareholders' equity at 1 Jan 2022 | 20.9 | 4,134.0 | 3,051.6 | 7,206.5 | - | 7,206.5 |
| Profit/loss for the period | - | - | 903.6 | 903.6 | 2.0 | 905.6 |
| Rights issue | 2.0 | 748.0 | - | 750.0 | - | 750.0 |
| Dividend | - | - | -173.7 | -173.7 | - | -173.7 |
| Acquisition of partly owned companies | - | - | - | - | 301.6 | 301.6 |
| Closing shareholders' equity 31 Dec 2022 | 22.9 | 4,882.0 | 3,781.5 | 8,686.4 | 303.6 | 8,990.0 |
| Opening equity at 1 Jan 2023 | 22.9 | 4,882.0 | 3,781.5 | 8,686.4 | 303.6 | 8,990.0 |
| Profit/loss for the period | - | - | 70.4 | 70.4 | 2.5 | 72.9 |
| Dividend | - | - | -29.1 | -29.1 | - | -29.1 |
| Closing equity at 31 March 2023 | 22.9 | 4,882.0 | 3,822.8 | 8,727.7 | 306.1 | 9,033.8 |
INTERIM REPORT JANUARY - MARCH 2023
This document is an in-house translation of the Swedish interim report. In the event of discrepancies, the Swedish original will supersede the translation.
Consolidated statement of cash flows
| Amounts in SEKm | Jan - Mar 2023 | Jan - Mar 2022 | full year 2023 |
|---|---|---|---|
| Operating activities | |||
| Profit before tax | 116.4 | 540.5 | 1,279.9 |
| Depreciation of equipment | 2.4 | 2.7 | 9.9 |
| Unrealised changes in the value of properties | -73.5 | -96.0 | -143.2 |
| Unrealised changes in the value of derivatives | 92.5 | -309.1 | -639.3 |
| Tax paid | -9.4 | -11.3 | -6.7 |
| Cash flow from operating activities before changes in working capital | 128.4 | 126.8 | 500.6 |
| Change in current receivables | -15.2 | -12.9 | -21.2 |
| Change in current liabilities | 25.3 | -16.9 | 110.6 |
| Cash flow from operating activities | 138.5 | 97.0 | 590.0 |
| Investing activities | |||
| Acquisition of investment properties | - | -155.1 | -593.4 |
| Investments in existing properties | -417.3 | -111.2 | -1,083.7 |
| Acquisition of subsidiaries | -118.1 | - | - |
| Acquisition of property, plant and equipment | -2.3 | 3.8 | -22.0 |
| Increase in non-current receivables | -271.0 | -32.6 | -104.2 |
| Cash flow from investing activities | -808.7 | -295.1 | -1,803.3 |
| Financing activities | |||
| New borrowing | 724.0 | 300.0 | 3,635.0 |
| Rights issue | - | - | 750.0 |
| Repayment of loans | -59.0 | -74.1 | -2,976.2 |
| Repayment of lease liability | -1.2 | -1.2 | -4.8 |
| Dividend | -29.1 | -25.2 | -173.7 |
| Cash flow from financing activities | 634.7 | 199.5 | 1,230.3 |
| Cash flow for the period | -35.5 | 1.4 | 17.0 |
| Cash and cash equivalents at start of period | 214.7 | 197.7 | 197.7 |
| Cash and cash equivalents at end of period | 179.2 | 199.1 | 214.7 |
| Interest paid included in operating activities | -39.2 | -28.5 | -182.3 |
| Interest received included in operating activities | 1.2 | 1.0 | 1.4 |
INTERIM REPORT JANUARY - MARCH 2023
This document is an in-house translation of the Swedish interim report. In the event of discrepancies, the Swedish original will supersede the translation.
21
KEY PERFORMANCE INDICATORS
Refers to alternative performance measures and reconciliation tables as defined by the European Securities and Markets Authority (ESMA), which, like other key performance indicators, are defined on pages 28–29 and reconciliation tables on pages 26–27.
| Jan - Mar 2023 | Jan - Mar 2022 | full year 2022 | |
|---|---|---|---|
| Property and operational key performance indicators | |||
| Property value, SEKm | 20,648.7 | 18,260.1 | 20,157.7 |
| Yield, % | 4.7 | 4.3 | 4.7 |
| Lettable area, sqm | 493,701 | 449,720 | 493,893 |
| Rental value, SEK/sqm | 2,081 | 1,920 | 2,089 |
| Economic occupancy rate, % | 97.8 | 98.5 | 97.9 |
| Surplus ratio, % | 80.2 | 79.5 | 80.4 |
| Share of public-sector tenants, % | 94.8 | 93.4 | 94.8 |
| Remaining contract period public-sector tenants, years | 5.8 | 5.8 | 5.9 |
| Net investments, SEKm | 417.3^{1} | 366.7 | 1,677.1 |
| Profit from property management, SEKm | 135.4 | 135.4 | 497.4 |
| Financial key performance indicators | |||
| Loan-to-value ratio, % | 52.2 | 53.6 | 51.0 |
| Interest coverage ratio, multiple | 3.4 | 5.0 | 3.9 |
| Capital commitment, years | 2.5 | 3.0 | 2.3 |
| Fixed-rate period, years | 3.0 | 4.0 | 3.0 |
| Average interest rate, % | 2.78 | 1.49 | 2.53 |
| Average interest rate excl. unutilised credit facilities, % | 2.74 | 1.44 | 2.48 |
| Share of secured debt, % | 24.9 | 12.0 | 24.2 |
| Equity/assets ratio, % | 40.4 | 39.4 | 41.7 |
| Key performance indicators per Class A and Class B share | |||
| Adjusted long-term net asset value, SEK | 51.12 | 48.16 | 50.03 |
| Growth in adjusted long-term net asset value^{2}, % | 2.2 | 2.8 | 7.7 |
| Adjusted profit from property management, SEK | 0.72 | 0.80 | 2.74 |
| Growth in adjusted profit from property management, % | -10.3 | 45.5 | 11.1 |
| Dividend, SEK | - | - | 0.46 |
| Profit for the period attributable to shareholders of the parent, SEK | 0.28 | 2.72 | 5.58 |
| Number of shares at end of period, million | 148.2 | 137.9 | 148.2 |
| Average number of shares during the period, million | 148.2 | 137.9 | 143.1 |
| Key performance indicators per Class D share | |||
| Shareholder equity, SEK | 33.00 | 33.00 | 33.00 |
| Profit, SEK | 0.50 | 0.50 | 1.93 |
| Dividend, SEK | 0.50 | 0.50 | 1.80 |
| Number of shares at end of period, million | 58.1 | 50.5 | 58.1 |
| Average number of shares during the period, million | 58.1 | 50.5 | 54.3 |
1) In addition, acquisition of hydropower of SEK 118.1 million.
2) Including dividends returned during the period.
INTERIM REPORT JANUARY – MARCH 2023
This document is an in-house translation of the Swedish interim report. In the event of discrepancies, the Swedish original will supersede the translation.
PARENT COMPANY FINANCIAL STATEMENTS
Condensed parent company income statement
| Amounts in SEKm | Jan - Mar 2023 | Jan - Mar 2022 | full year 2022 |
|---|---|---|---|
| Income | 17.7 | 17.4 | 69.4 |
| Administrative expenses | -14.9 | -16.2 | -76.5 |
| Operating profit/loss | 2.8 | 1.2 | -7.0 |
| Interest income | 118.0 | 100.7 | 436.9 |
| Interest expense | -70.0 | -36.2 | -184.4 |
| Profit/loss after financial items | 50.8 | 65.7 | 245.4 |
| Appropriations | |||
| Accrual fund | - | - | 3.8 |
| Group contributions | - | - | -43.1 |
| Profit before tax | 50.8 | 65.7 | 206.1 |
| Tax | - | - | - |
| Profit/loss for the period | 50.8 | 65.7 | 206.1 |
Profit for the period is in line with comprehensive income for the period.
Condensed parent company balance sheet
| Amounts in SEKm | 31 Mar 2023 | 31 Mar 2022 | 31 Dec 2022 |
|---|---|---|---|
| Assets | |||
| Equipment | 1.5 | 1.5 | 1.6 |
| Total property, plant and equipment | 1.5 | 1.5 | 1.6 |
| Financial assets | |||
| Shares in subsidiaries | 6,432.4 | 5,799.1 | 6,399.1 |
| Investments in associated company | 3.6 | 2.5 | 3.4 |
| Receivable from associated company | 399.9 | 88.3 | 130.0 |
| Receivables from subsidiaries | 8,860.7 | 7,343.0 | 8,332.6 |
| Deferred tax assets | 5.1 | 5.1 | 5.1 |
| Other non-current receivables | 3.8 | 3.8 | 3.8 |
| Total non-current financial assets | 15,705.5 | 13,241.8 | 14,874.0 |
| Current assets | |||
| Receivables from Group companies | 5,059.0 | 3,369.2 | 6,230.1 |
| Other current receivables | 18.6 | 51.7 | 52.7 |
| Prepaid expenses and accrued income | 22.8 | - | 7.2 |
| Cash and bank balances | 168.3 | 199.1 | 218.3 |
| Total current assets | 5,268.7 | 3,620.0 | 6,508.3 |
| Total assets | 20,975.7 | 16,863.3 | 21,383.9 |
| Equity and liabilities | |||
| Restricted equity | 22.9 | 20.9 | 22.9 |
| Non-restricted equity | 4,629.9 | 3,868.3 | 4,608.2 |
| Total shareholders' equity | 4,652.8 | 3,889.2 | 4,631.1 |
| Untaxed reserves | 26.5 | 30.2 | 26.5 |
| Non-current liabilities | |||
| Interest-bearing liabilities | 7,709.2 | 5,720.4 | 7,858.2 |
| Total non-current liabilities | 7,709.2 | 5,720.4 | 7,858.2 |
| Current liabilities | |||
| Interest-bearing liabilities | 3,429.0 | 4,320.0 | 2,615.0 |
| Liabilities to Group companies | 5,112.5 | 2,863.2 | 6,199.0 |
| Accrued expenses and deferred income | 32.3 | 26.7 | 33.7 |
| Other current liabilities | 13.4 | 13.6 | 20.4 |
| Total current liabilities | 8,587.2 | 7,223.5 | 8,868.1 |
| Total equity and liabilities | 20,975.7 | 16,863.3 | 21,383.9 |
INTERIM REPORT JANUARY - MARCH 2023
This document is an in-house translation of the Swedish interim report. In the event of discrepancies, the Swedish original will supersede the translation.
THE SHARE AND SHAREHOLDERS
Shareholders
Intea had 21 shareholders at the end of the period. The company has three different classes of shares: Class A, Class B and Class D ordinary shares. Class A ordinary shares carry one vote per share, while Class B and Class D ordinary shares carry one-tenth (1/10) of a vote per share.
According to the Articles of Association, each Class D share entitles the holder to five times the total dividend on the Class A and
Class B shares, but not more than SEK 2.00 per Class D share per year, to be paid in four equal instalments with record dates on the last banking day of March, June, September and December each year. The next record date is 30 June 2023.
Shareholders 31 March 2023
| Shareholders | Class A shares | Class B shares | Class D shares | Capital % | Votes % |
|---|---|---|---|---|---|
| Henrik Lindekrantz, privately and through companies | 3,195,000 | 4,982,610 | 4.0 | 14.0 | |
| Christian Haglund, privately and through companies | 3,195,000 | 4,982,610 | 4.0 | 14.0 | |
| Svenska Handelsbanken Pension Fund | 20,386,920 | 13,405,742 | 16.4 | 12.8 | |
| Saab Pension Fund | 19,177,840 | 6,467,361 | 12.4 | 9.7 | |
| Volvo Pension Fund | 16,485,124 | 5,832,111 | 10.8 | 8.5 | |
| Lantbrukarnas Ekonomi AB | 15,997,108 | 5,389,457 | 10.4 | 8.1 | |
| SHB Occupational Pension Association Pension Fund | 10,193,462 | 6,702,871 | 8.2 | 6.4 | |
| The Foundation for Baltic and East European Studies | 11,765,006 | 4,096,001 | 7.7 | 6.0 | |
| Insurance company PRI Pensionsgaranti, mutual | 11,359,450 | 3,772,637 | 7.3 | 5.7 | |
| The Riksbankens Jubileumsfond Foundation | 9,598,248 | 3,233,694 | 6.2 | 4.9 | |
| 10 largest shareholders | 6,390,000 | 124,928,378 | 48,899,874 | 87.4 | 90.1 |
| Other shareholders | 16,915,558 | 9,172,416 | 12.6 | 9.9 | |
| Total | 6,390,000 | 141,843,936 | 58,072,290 | 100.0 | 100.0 |
INTERIM REPORT JANUARY - MARCH 2023
This document is an in-house translation of the Swedish interim report. In the event of discrepancies, the Swedish original will supersede the translation.
INTERIM REPORT JANUARY – MARCH 2023
This document is an in-house translation of the Swedish Interim report. In the event of discrepancies, the Swedish original will supersede the translation.
OTHER INFORMATION
Employees and organisation
On 31 March 2023, the Group had 52 (48) employees, including employees of the parent company and its subsidiaries, an increase of 4 people.
Parent company
Profit from property management from subsidiaries during the period January-March amounted to SEK 17.7 million (17.4) and operating income was SEK 2.8 million (1.2). Net financial items of SEK 48.0 million (64.5) consisted of internal interest income from subsidiaries of SEK 115.0 million (98.8), other financial income of SEK 3.0 million (1.9) and external interest expenses of SEK 70.0 million (36.2). Profit after tax totalled SEK 50.8 million (65.7). The parent company's fixed assets consist mainly of shares in subsidiaries and receivables from them, totalling SEK 13,919.7 million (10,712.2). External interest-bearing loans amounted to SEK 11,138.2 million (10,040.4).
Significant events relating to Intea's IPO process
In June 2021, Intea began to prepare the company for an IPO on Nasdaq Stockholm and in connection with this effort, a review of the company's organisation and capital structure was initiated and carried out; see the company's 2022 Annual Report for more information. Preparatory work continued in 2022 and 2023, but has been put on hold due to the current market situation.
Related party transactions
The company sublets premises to I Know a Place AB, a company owned by Henrik Lindekrantz and Christian Haglund through Antea AB. The annual rent is set on arm's length terms and amounts to SEK 3.2 million.
Risks and uncertainties
Management continuously monitors and evaluates the material risks to which Intea is exposed. The ongoing conflict in Ukraine, high inflation with increased energy prices, supply chain problems and rising interest rates are affecting the company's profitability. As Intea has almost exclusively public-sector tenants, however, the company's rental income is expected to be affected only to a very limited extent. The leases are largely inflation-protected, which allows coverage of the company's increased costs. The tenants are responsible for approximately one third of energy costs. Because of its medium-length capital and interest rate commitment, Intea has limited exposure to rising credit margins or interest rates. Consequently, Intea does not expect revenue to be negatively impacted to any significant extent in the short term, although the company's costs are expected to increase. Intea is monitoring and analysing the external situation to limit the impact of the above risks. Inflation, rising interest rates and changing conditions in capital markets may affect the company in the medium and long term. Other than as described above, there have been no changes in risks and uncertainties. These assessments also relate to the parent company.
For a more detailed description of risks and uncertainties, please see pages 48–52 of the 2022 Annual Report.
Accounting policies
This interim report for the Group has been prepared in accordance with IAS 34 Interim Financial Reporting and the applicable disclosure requirements of the Annual Accounts Act. The interim report for the parent company has been prepared in accordance with Chapter 9, Interim Reports, of the Swedish Annual Accounts Act. Disclosures in accordance with IAS 34.16A are presented in the financial statements and in other parts of the interim report. From 1 October 2022, new accounting policies have been implemented with respect to IAS 23. The part of the interest expense relating to interest during the production period for major new building, extension or conversion projects is capitalised. The interest rate is calculated on the basis of the average cost of borrowing for general financing in the Group. Capitalisation of interest has not been applied retrospectively as it is not considered to have a material effect on comparative periods. Other accounting policies and calculation methods remain unchanged from last year.
The carrying amounts of trade and other receivables, short-term investments, cash and cash equivalents, trade payables and other liabilities are a reasonable approximation of fair value, except for shareholder loans.
Valuation of properties
A full valuation of Intea's portfolio is carried out every quarter. At least twice a year, the internal valuation is supplemented by a valuation carried out by an authorised property valuer from an independent valuation institute. The external valuations are normally carried out in the second and fourth quarters. Fair value has been determined using a combination of the yield-based method and the comparable sales method. All properties are classified in level 3 of the fair value hierarchy according to IFRS 13.
The change in value is recognised in the income statement and consists of SEK 73.5 million in unrealised changes in value. The valuation of ongoing projects varies depending on the stage of the project and the risk that the project will not meet the financial calculations underlying the project's implementation. The decisive factors are whether the project includes land with a right of disposal, a signed lease, an adopted local development plan and a granted building permit.
INTERIM REPORT JANUARY – MARCH 2023
This document is an in-house translation of the Swedish Interim report. In the event of discrepancies, the Swedish original will supersede the translation.
Valuation of derivatives
Interest rate derivatives are measured at fair value in the balance sheet and are valued at level 2 of IFRS valuation hierarchy.
Proposed dividend
As previously communicated on 17 February 2023, the Board of Directors proposes a dividend of SEK 0.90 per Class A and Class B share (0.50). The Board also proposes a dividend of SEK 2.00 per Class D share (2.00) with a quarterly payment of SEK 0.50.
Annual General Meeting
The Annual General Meeting will be held on Tuesday 9 May 2023. The 2022 annual report is available on the company's website.
For further information, please contact
Henrik Lindekrantz, CEO, +46 (0)732-08 81 02
Emil Jansbo, CFO, +46 (0)722-43 30 88
Chief Executive Officer's assurance
The Chief Executive Officer hereby certifies that this interim report provides a true and fair overview of the parent company's and Group's business operations, financial position and earnings and describes material risks and uncertainties faced by the company and Group companies.
Stockholm, 9 May 2023
Intea Fastigheter AB (publ)
Henrik Lindekrantz
Chief Executive Officer
This interim report has not been reviewed by the company's auditors.
This information is information that Intea Fastigheter AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, on 9 May 2023 at 12:00 CET.
25
26
Basis for key performance indicators
Intea publishes a number of financial key performance indicators that are not defined by IFRS and are therefore alternative performance measures according to the European Securities and Markets Authority (ESMA). The company believes that these key performance indicators provide valuable additional information about its performance and position.
| Jan - Mar 2023 | Jan - Mar 2022 | full year 2022 | |
|---|---|---|---|
| Property and operational key performance indicators | |||
| Share of public-sector tenants, % | |||
| Contractual rental value, public-sector tenants, SEKm | 952.9 | 794.4 | 957.5 |
| (/) Contractual rental value, total, SEK million | 1,004.8 | 850.3 | 1,009.9 |
| Share of public-sector tenants, % | 94.8 | 93.4 | 94.8 |
| Economic occupancy rate, % | |||
| Contractual rental value on an annual basis, SEKm | 1,004.8 | 850.3 | 1,009.9 |
| (/) Rental value on an annual basis at the end of the period, SEK million | 1,027.2 | 863.7 | 1,031.8 |
| Economic occupancy rate, % | 97.8 | 98.5 | 97.9 |
| Net investments, SEKm | |||
| Acquisitions during the period, SEKm | - | 255.8 | 593.4 |
| (-) Investments in new-builds, extensions and redevelopment, SEKm | 417.3 | 110.9 | 1,083.7 |
| Net investments, SEKm | 417.3 | 366.7 | 1,677.1 |
| Surplus ratio, % | |||
| Operating surplus for the period, SEKm | 207.3 | 184.4 | 738.6 |
| (/) Rental income for the period, SEK million | 258.6 | 231.9 | 918.3 |
| Surplus ratio, % | 80.2 | 79.5 | 80.4 |
| Financial key performance indicators | |||
| Loan-to-value ratio, % | |||
| Interest-bearing liabilities^{1}, SEKm | 11,238.2 | 10,040.4 | 10,573.2 |
| (-) Cash and cash equivalents and short-term investments, SEKm | -179.2 | -199.1 | -214.7 |
| Net debt, SEKm | 11,059.0 | 9,841.3 | 10,358.6 |
| Fair value of properties, SEKm | 20,648.7 | 18,260.1 | 20,157.7 |
| Investments in associated company, SEKm | 3.3 | 2.3 | 3.2 |
| Receivable from associated company, SEKm | 399.9 | 88.3 | 130.0 |
| Other non-current assets, SEKm | 136.7 | 9.4 | 25.3 |
| (/) Total assets, SEK million | 21,188.7 | 18,360.1 | 20,316.2 |
| Loan-to-value ratio, % | 52.2 | 53.6 | 51.0 |
| Adjusted long-term net asset value, SEKm | |||
| Equity attributable to owners of the parent | 8,727.6 | 7,581.6 | 8,686.4 |
| of which Class D shares, SEKm | 1,916.4 | 1,666.4 | 1,916.4 |
| Deferred tax liabilities, SEKm | 1,362.3 | 1,082.6 | 1,334.7 |
| Derivatives, SEKm | -596.4 | -358.8 | -688.9 |
| Adjusted long-term net asset value, SEKm | 7,577.1 | 6,639.0 | 7,415.8 |
1) Interest-bearing liabilities excluding lease liabilities.
INTERIM REPORT JANUARY - MARCH 2023
This document is an in-house translation of the Swedish interim report. In the event of discrepancies, the Swedish original will supersede the translation.
INTERIM REPORT JANUARY – MARCH 2023
This document is an in-house translation of the Swedish Interim report. In the event of discrepancies, the Swedish original will supersede the translation.
| Jan – Mar 2023 | Jan – Mar 2022 | full year 2022 | |
|---|---|---|---|
| Average interest rate at the end of the period, % | |||
| Interest expense on an annual basis at the end of the period, SEKm | 312.2 | 149.4 | 267.5 |
| (/) Interest-bearing liabilities^{1} at the end of the period according to the balance sheet, SEK million | 11,238.2 | 10,040.4 | 10,573.2 |
| Average interest rate at the end of the period, % | 2.78 | 1.49 | 2.53 |
| Interest coverage ratio, multiple | |||
| Profit/loss before financial items, SEKm | 194.3 | 171.0 | 675.1 |
| (/) Net financial items for the period excl. interest on site leasehold, SEK million | -58.0 | -34.3 | -173.5 |
| Interest coverage ratio, multiple | 3.4 | 5.0 | 3.9 |
| Equity/assets ratio, % | |||
| Equity, SEKm | 9,033.8 | 7,581.7 | 8,990.0 |
| (/) Assets, SEK million | 22,334.3 | 19,256.3 | 21,550.4 |
| Equity/assets ratio, % | 40.4 | 39.4 | 41.7 |
| Share-related key performance indicators | |||
| Adjusted profit from property management per Class A and Class B share, SEK | |||
| Profit from property management, SEKm | 135.4 | 135.4 | 497.4 |
| (-) Dividend Class D shares, SEKm | 29.0 | 25.2 | 104.8 |
| Total | 106.4 | 110.2 | 392.6 |
| (/) Adjusted average number of Class A and Class B shares, millions | 148.2 | 137.9 | 143.1 |
| Adjusted profit from property management per Class A and Class B share, SEK | 0.72 | 0.80 | 2.74 |
| Adjusted long-term net asset value per Class A and Class B share, SEK | |||
| Long-term net asset value, SEKm | 7,577.1 | 6,639.0 | 7,415.8 |
| (/) Number of Class A and Class B shares at end of period, millions | 148.2 | 137.9 | 148.2 |
| Adjusted long-term net asset value per Class A and Class B share, SEK | 51.12 | 48.16 | 50.03 |
1) Interest-bearing liabilities excluding lease liabilities.
27
DEFINITIONS
| Key performance indicators | Definition | Purpose |
|---|---|---|
| Adjusted long-term net asset value per Class A and Class B share, SEK | Long-term net asset value in relation to the number of Class A and Class B shares out standing at the end of the period. | The performance indicator highlights the long-term net asset value share of holders of Class A and Class B shares. |
| Adjusted long-term net asset value, SEKm | Equity attributable to shareholders of the parent company at the end of the period, net of deferred tax, interest rate derivatives as shown in the balance sheet and less a maximum of SEK 33 per Class D share multiplied by the number of Class D shares outstanding. | The performance indicator is an established measure of the long-term net asset value of the company and other listed companies, which allows for analyses and comparisons. |
| Adjusted profit from property management per Class A and Class B share, SEK | Profit/loss from property management less, where appropriate, the profit/loss for the period attributable to Class D shares in relation to the average number of Class A and Class B shares outstanding during the period. | The performance indicator is used to illustrate the company's earnings from property management per Class A and Class B share in a way that is consistent for listed companies. |
| Average interest rate at the end of the period, % | Average interest rate on interest-bearing liabilities excluding, where applicable, lease liabilities, including costs of committed lines of credit and including interest coupon derivatives. | The performance indicator is used to highlight the interest rate risk of the company's interest-bearing liabilities. |
| Contractual annual rental value, SEKm | Contractual rental income on an annual basis less rent discounts and vacancies. | |
| Economic occupancy rate, % | Contractual annual rental value at the end of the period in relation to the sum of contractual income, estimated market rent for unlet space and, where applicable, discounts on an annual basis. | The performance indicator illustrates the economic utilisation rate of the company's lettable area. |
| Equity/assets ratio, % | Total equity divided by total assets at the end of the period. | The ratio is used to show the proportion of the company's assets that are financed by equity and is included to enable investors to assess the company's capital structure. |
| Fixed-rate period, years | Average fixed-rate period at the end of the period of interest-bearing liabilities, if any, excluding lease liabilities, but including the coupon rates on interest-rate derivatives. | The performance indicator is used to highlight interest rate risk. A long fixed-rate term indicates lower interest rate risk. |
| Interest coverage ratio, multiple | Profit/loss from property management in relation to net financial income for the period. | The performance indicator illustrates interest rate risk by highlighting the sensitivity of the company's profit/loss from property management to changes in interest rates. |
| Like-for-like portfolio | Properties owned for entire comparable periods that have not been classified as project properties during those periods. | |
| Loan commitment, years | Average remaining maturity at the end of the period of interest-bearing liabilities. | The performance indicator is used to highlight risk associated with refinancing. A long maturity indicates lower refinancing risk. |
| Loan-to-value ratio, % | Interest-bearing liabilities less lease liabilities where applicable, cash and cash equivalents and short-term investments in relation to the fair value of the properties, shares in associated company, receivables from associated company and other non-current assets. | This performance indicator is used to highlight the financial risk of the company and shows the proportion of the business that is financed by interest-bearing liabilities. |
| Net investments, SEKm | The sum of cash flow from investments made in project and investment properties, adjusted for any sales during the period. | Key performance indicator to highlight the company's ability to achieve operational objectives. |
| Profit from property management, SEKm | Profit/loss before changes in value, tax and, where applicable. | The performance indicator illustrates the profitability of the property management. |
INTERIM REPORT JANUARY - MARCH 2023
This document is an in-house translation of the Swedish Interim report. In the event of discrepancies, the Swedish original will supersede the translation.
INTERIM REPORT JANUARY - MARCH 2023
This document is an in-house translation of the Swedish Interim report. In the event of discrepancies, the Swedish original will supersede the translation.
| Key performance indicators | Definition | Purpose |
|---|---|---|
| Project property | Property or a well-defined part of a property that has been left vacant for the purpose of conversion and improvement. Project properties also include buildings under construction and properties with an investment of at least 20 percent of its fair value. The reclassification from project property to completed property is carried out at 1 January of the year following completion. | |
| Property category | Main activity in the property calculated on contractual annual rental value per property unit. There may be areas within a property category that relate to activities other than the main category. Intea's property categories are Justice, Higher Education, Health care, Other public sector and Non-public. | |
| Property units | A registered property or, as the case may be, if the registered property is occupied by several buildings in which the main uses vary within Intea's property categories, such buildings constitute property units. | |
| Property value, SEKm | The amount at which the company's investment properties are carried in the balance sheet at the end of the period. | The performance indicator highlights the value of the company's property portfolio. |
| Public-sector tenants | Tenants for which the credit risk of the tenancy is borne by the state, a municipality or region. | The performance indicator is used to highlight the credit risk in the company's income. |
| Remaining contract period, years | The average remaining lease term for public-sector tenants weighted based on contractual rental value. | The key performance indicator is used to highlight the company's rental risk. |
| Rental value, SEKm | Contractual annual rental value plus rent discounts and vacancies on an annual basis. | |
| Share of public-sector tenants, % | Contractual annual rental value from public-sector tenants divided by total contractual annual rental value. | The performance indicator is used to highlight the overall credit risk of the company's tenants. A high proportion of income from public-sector tenants contributes to lower credit risk. |
| Share of secured debt, % | Secured debt as a percentage of total assets. | The performance indicator is a measure of the degree of structural subordination to unsecured debt. |
| Tenant category | Based on the activities of the tenants, the categories are Justice, Higher Education, Health Care, Other Public Sector and Non-Public Sector. | |
| Yield, % | The net operating income on an annual basis for the property portfolio at the end of the period in relation to the value of the property portfolio at the end of the period less the value of ongoing projects and unused building rights. | The key performance indicator shows the profit generation before financial expense and costs for central administration are taken into account. |
29
INTEA.
Financial calendar
Annual General Meeting 2023: 9 May 2023
Interim report January – June 2023: 18 July 2023
Interim report January – September 2023: 26 October 2023
Year-end report 2023: 20 February 2024
Intea Fastigheter AB (publ)
Company registration number: 559027-5656
Sergels Torg 12, 111 57 Stockholm, Sweden
www.intea.se
[email protected]
INTERIM REPORT JANUARY – MARCH 2023
This document is an in-house translation of the Swedish interim report. In the event of discrepancies, the Swedish original will supersede the translation.