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JM Interim / Quarterly Report 2024
2932_10-q_2024-04-23_06c815e4-ef74-4fb8-a8c0-4048d6527315.pdf
Interim / Quarterly Report
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Interim Report January–March 2024
"Thanks to our attractive projects, our sales to private individuals increased significantly in the quarter"
JOHAN SKOGLUND, PRESIDENT AND CEO
Interim Report January–March 2024
JANUARY–MARCH 2024
- Revenue amounted to SEK 3,034m (3,962).
- Operating profit decreased to SEK 160m (417). The operating margin decreased to 5.3 percent (10.5).
- Profit before tax decreased to SEK 128m (394), and profit after tax decreased to SEK 79m (311).
- Return on equity for the past twelve months amounted to 2.3 percent (16.8).
- Earnings per share amounted to SEK 1.20 (4.80).
- Consolidated cash flow including net investment in properties amounted to SEK −949m (792).
- The number of residential units sold was 480 (479), and housing starts decreased to 145 (214).
- According to IFRS, revenue amounted to SEK 2,765m (4,696), and earnings per share to SEK 0.70 (7.50).
- On April 16, JM's board appointed Mikael Åslund as the new President and CEO from June 1, 2024.
For the Group's income statement and balance sheet in accordance with IFRS, IFRS 15 Revenue from Contracts with Customers is applied, which means that revenue and profit/loss from JM's housing operations are reported according to the completed contract method. Segment reporting and project management are reported according to the percentage of completion method. The Group's consolidated statements according to IFRS are presented on pages 17-18. For definitions of key financial figures, see "Definitions Key Financial Figures" at jm.se/en/about-us/investors/
The financial statements are presented in Swedish krona (SEK), which is also the reporting currency for the Parent Company. All amounts are rounded to the nearest million unless otherwise specified. The amounts in the report are based on the Group's consolidation system, which is in SEK thousand. Due to rounding in tables, total amounts may not correspond to the sum of the initial rounded whole numbers. Unless otherwise specified, amounts and comments in this interim report are based on JM's segment reporting. The content is a translation of the Swedish original text, which is the official version.
Group Key Figures
| JANUARY–MARCH | APRIL–MARCH | FULL-YEAR | ||
|---|---|---|---|---|
| ACCORDING TO SEGMENT REPORTING, SEK M | 2024 | 2023 | 2023/2024 | 2023 |
| Revenue | 3,034 | 3,962 | 12,923 | 13,851 |
| Operating profit 1) | 160 | 417 | 475 | 732 |
| Operating margin, % | 5.3 | 10.5 | 3.7 | 5.3 |
| Profit before tax | 128 | 394 | 366 | 632 |
| Cash flow from operating activities | –949 | 792 | –1,788 | –48 |
| Return on equity, % | 2.3 | 5.0 | ||
| Equity/assets ratio, % | 52 | 54 | 50 | |
| Earnings per share, SEK | 1.20 | 4.80 | 3.10 | 6.70 |
| Number of residential units sold 2) 3) | 480 | 479 | 1,902 | 1,901 |
| Number of housing starts 4) 5) | 145 | 214 | 1,540 | 1,609 |
| ACCORDING TO IFRS, SEK M | ||||
| Revenue | 2,765 | 4,696 | 14,038 | 15,969 |
| Operating profit | 126 | 648 | 988 | 1,510 |
| Earnings per share, SEK | 0.70 | 7.50 | 9.10 | 16.00 |
| 1) Of which impairment in development and project properties | – | – | –258 | –258 |
| 2) Of which rental units and residential care units in JM Property Development | – | 218 | – | 218 |
| 3) Of which residential units in JM Norway and JM Finland to investors | 50 | – | 496 | 446 |
| 4) Of which residential units in JM Norway and JM Finland to investors | – | – | 446 | 446 |
| 5) Of which rental units and residential care units in JM Property Development | – | – | 155 | 155 |
| RESIDENTIAL UNITS IN CURRENT PRODUCTION | 3/31/2024 | 3/31/2023 | 12/31/2023 |
|---|---|---|---|
| Number of residential units in current production 1) 2) | 5,068 | 6,996 | 6,033 |
| Percentage of sold residential units in current production, % 3) | 51 | 55 | 52 |
| Percentage reserved residential units in current production, % | 4 | 4 | 2 |
| Percentage sold and reserved residential units in current production, % | 55 | 59 | 54 |
| 1) Of which rental units and residential care units in JM Property Development | 662 | 507 | 662 |
| 2) Of which rental units and residential care units not intended for sale in current production, JM Property Development – not included in the percentage of sold and reserved residential units in current production |
444 | 289 | 444 |
3) Percentage of sold residential units expressed as binding contract with the end customer.
| UNSOLD UNITS | 3/31/2024 | 3/31/2023 | 12/31/2023 |
|---|---|---|---|
| Completed production, number of unsold units 1) | 397 | 161 | 308 |
| Number of unsold units reported in the balance sheet | 145 | 68 | 235 |
1) After final occupancy according to plan.
Increased sales enable more housing starts
During the first quarter of 2024, we were able to see signs that the housing market, primarily in Sweden, is starting to improve. The general assessment is that mortgage interest rates will decrease during the year, which has resulted in increased interest in our residential units in all JM's submarkets. However, customers continue to be cautious, and the price increases and increased transaction volumes reported from the housing market in March are improvements from low levels. My assessment is that it probably will require several decreases to the mortgage rates, enabling more people to purchase a home, before we see any significant improvement on the market for new production.
Increased sales
Thanks to our fine projects with attractive residential units, our sales to private individuals increased significantly in the quarter compared to previous year, particularly in our Swedish business segments, despite the challenges of a cautious market. We have continued to adapt prices in projects close to occupancy and thus been able to decrease the number of unsold residential units in the balance sheet. The number of housing starts was low in the quarter, but the improved sales increase JM's possibilities for a increased number of housing starts during the year. However, high production and project financing costs continued to pressure the margins in our projects.
Prices on the existing home market in Stockholm improved slightly in the quarter, while prices on JM's other markets in Sweden were stable or decreased slightly. The number of transactions on the existing home market increased from a low level. In Norway, prices increased slightly after the Norwegian central bank left the key rate unchanged. Prices on the Finnish market were stable during the quarter but lower than the previous year. The supply on the existing home market continued to be high in all our markets, while the supply of new production is low. Interest in JM's residential units continues to be strong and increasing.
Sales in the housing operations in Stockholm increased compared to both the previous quarter and the same quarter the previous year. Two projects in Nacka and Sollentuna were started during the quarter. Sales in the rest of Sweden also improved. JM has continued to adjust prices in select projects close to completion, primarily in Stockholm, which had a negative impact on operating profit.
JM Norway's sales was in line with previous year, but no new projects were started during the quarter. The operating profit was impacted positively by the sale of developed land in the Oslo area.
The price level and the activity level in the Finnish housing market continued to be low during the first quarter. Given the current market conditions, JM Finland continued to sell to investors, and during the quarter 50 completed residential units were sold to a joint venture between JM and external investors. There were no housing starts in the quarter. The operating profit in Finland was lower than in the previous year primarily due to fewer units in production and price adjustments in select projects close to completion.
"Thanks to our attractive projects, our sales to private individuals increased significantly in the quarter"
JM Property Development's revenue was lower than the previous year due to the sale of the rental project Kvarter 8 in Järfälla during the first quarter of 2023. The operating profit was favored by index regulation of the purchase price in ongoing office project and was in line with the previous year.
After the end of the quarter we have sold the rental property Dyrvers Kulle. The transaction, which amounts to SEK 410m with a result of approximately SEK 3m, will be reported in the second quarter 2024.
Few housing starts meant lower cash flow
JM is prioritizing good liquidity to maintain production and retain resources in preparation for when the market turns, and we continue to be cautious with investments in development properties. Few housing starts in the quarter and that we received a deposit in the previous year for sold properties and project financing for ongoing projects in the business segment JM Property Development resulted in lower cash flow than in the previous year. Despite this, JM has a strong financial position that gives us the freedom to act on new business opportunities.
The fundamental and long-term conditions for our business continue to be good. There is a shortage of housing in all our markets, and we continue to make the assessment that decreasing mortgage rates are creating conditions for a recovery on the housing market in 2024. With a strong building rights portfolio and good production capacity, JM is well-positioned for when the market turns.
This is my 86th and final interim report as President and CEO of JM. It has been a fantastic time, and I am now turning it over to my successor Mikael Åslund to lead this fine company toward a brighter future.
Johan Skoglund, President and CEO
Market, sales and housing starts
JANUARY– MARCH 2024
During the first quarter, inflation decreased on all of the Group's submarkets, and the general assessment is that interest rates have reached their peak, and central banks are not expected to raise the interest rates further. The global economy is still burdened by current global factors such as high inflation, high market rates, and geopolitical uncertainty.
The current market conditions together with a large supply on the existing home market also continued to have a large impact on the housing market and subsequently JM's operations.
Consumers' purchasing power has been weakened, and customers are cautious. Often, it takes a long time from when the customer signs the agreement until they move in, which means that the market for newly produced residential units is more exposed than the existing home market when households' finances have been weakened.
Prices on the existing home market increased slightly during the quarter on the Swedish and Norwegian markets but decreased on the Finnish market.
The underlying need of housing is large, but the Group's housing starts and sales remained at a low level. In order for the housing market to pick up speed once again and for more consumers to be willing to buy a new home, several interest rate decreases will most likely be required.
Sales were in line with the corresponding period the previous year, and the number of sold residential units in the form of signed contracts amounted to 480 (479).
The percentage of sold and reserved residential units in relation to current production amounted to 55 percent (59), which is an increase from the turn of the year when this percentage was 54 percent. The interval 60–65 percent is considered a normal level. JM Residential Stockholm sold 168 residential units (51), JM Residential Sweden sold 172 (113), JM Norway sold 62 (77), JM Finland sold 78 (20), and JM Property Development sold 0 (218).
The number of housing starts decreased to 145 (214). JM Residential Stockholm started production on 145 residential units (0), JM Residential Sweden on 0 (139), JM Norway on 0 (41), JM Finland on 0 (34) and JM Property Development on 0 (0). The number of residential units in current production decreased to 5,068 (6,996), of which 662 (507) were rental units in JM Property Development.
Residential building rights
The number of available building rights at the end of the first quarter amounted to 38,300 (40,500), of which 22,700 (22,400) are reported as development properties in the balance sheet. The carrying amount of development properties increased in the first quarter to SEK 8,521m (8,229).
During the first quarter, residential development properties of SEK 157m (86) were acquired, of which SEK 122m (8) refers to JM Residential Stockholm, SEK 6 m (44) to JM Residential Sweden, SEK 3m (0) to JM Norway, and SEK 26m (34) to JM Finland.
HOUSING STARTS RESIDENTIAL UNITS GROUP RESIDENTIAL UNITS IN CURRENT PRODUCTION
JM Residential Stockholm JM Residential Sweden JM Norway JM Finland Total1) Percentage sold/reserved, Group (%) Normal level sold/reserved (60–65%)
1) Including 662 rental units and residential care units in JM Property Development where rental units intended for sale are included in the percentage of sold/reserved.
Revenue, operating profit and operating margin
JANUARY– MARCH 2024
Consolidated revenue according to segment reporting for the first quarter decreased to SEK 3,034m (3,962). The decreased revenue was primarily attributable to a low level of residential units in current production and a low sales ratio in all business segments, which to some extent is offset by commercial projects in current production.
Operating profit according to segment reporting decreased to SEK 160m (417), and the operating margin decreased to 5.3 percent (10.5), which is primarily attributable to price reductions in current projects and increased costs in current production.
Revenue restated according to IFRS decreased to SEK 2,765m (4,696) attributable to a lower number of handed over residential units than in the previous year and commercial projects in production. During the first quarter of 2024, 634 residential units (666) were handed over and recognized.
Operating profit restated according to IFRS decreased to SEK 126m (648). The decrease is primarily attributable to a lower number of handed over residential units with a lower margin.
Rental income from JM's project properties was SEK 17m (8). Net rental income was SEK 10m (3).
| JANUARY–MARCH | ||||
|---|---|---|---|---|
| 2024 | 2023 | 2023/2024 | 2023 | |
| –47 | 116 | –51 | 112 | |
| 17 | 126 | 30 | 139 | |
| 70 | 42 | 176 | 149 | |
| 26 | 38 | 128 | 140 | |
| 104 | 104 | 249 | 248 | |
| –10 | –9 | –58 | –56 | |
| 160 | 417 | 475 | 732 | |
| – | – | –258 | –258 | |
| – | – | 7 | 7 | |
| 1 | –4 | – | –5 | |
| JANUARY–MARCH | ||||
| 2024 | 2023 | 2023/2024 | 2023 | |
| –5.3 | 10.6 | –1.3 | 2.6 | |
| 2.9 | 11.2 | 1.0 | 4.0 | |
| 10.1 | 6.7 | 6.7 | 5.7 | |
| 6.7 | 8.6 | 8.3 | 8.8 | |
| 28.4 | 18.3 | 19.8 | 17.0 | |
| APRIL–MARCH FULL-YEAR APRIL–MARCH FULL-YEAR |
Financial items
JANUARY–M ARCH 2024
Net financial items according to segment reporting weakened compared to the corresponding period the previous year primarily due to a higher level of interest-bearing liabilities combined with a higher interest rate level on average. The total interest-bearing liabilities according to segment reporting were SEK 3,307m (2,033), of which the pension liability comprised SEK 1,528m (1,315). At the end of the quarter the average interest rate for the total interest-bearing loan stock including the pension liability was 4.8 percent (3.8). The average term for fixedrate loans, excluding the pension liability, was 0.2 years (0.3).
Consolidated available liquidity according to segment reporting decreased to SEK 3,132m (5,377). Aside from cash and cash equivalents of SEK 566m (2,577), this includes unutilized overdraft facilities and credit lines totaling SEK 2,567m (2,800) out of a total of SEK 2,800m, where credit agreements for SEK 2,400m had an average maturity of 2.4 years (3.2).
Interest-bearing net liabilities including the pension liability according to segment reporting totaled SEK 2,731m (−549) at the end of the quarter. Non-interest-bearing liabilities for completed property acquisitions amounted to SEK 750m (511). Of these liabilities, SEK 387m (98) were current.
The valuation of financial assets and liabilities shows no significant difference between carrying amount and fair value.
The effective tax rate according to segment reporting amounted to 38 percent (21) and was negatively impacted by limitations on interest rate deductions.
Cash flow
JANUARY–M ARCH 2024
Cash flow from operating activities according to segment reporting was SEK −949m (792) and was weakened compared to the corresponding period the previous year primarily due to a lower operating profit and a negative change in working capital. The change in working capital is largely due to fewer housing starts, that the Group received in the first quarter of 2023 a deposit for sold properties in construction, and project financing for ongoing projects in the JM Property Development business segment.
Net investments in development properties resulted in a cash flow of SEK −16m (162). The decreased holdings of unsold residential units in the balance sheet resulted in a cash flow of SEK 169m (−143). Consolidated cash flow attributable to project properties (sales minus investment) during the first quarter was SEK –108m (–149).
| ACCORDING TO SEGMENT REPORTING, SEK M | JANUARY–MARCH | APRIL–MARCH | FULL-YEAR | |
|---|---|---|---|---|
| 2024 | 2023 | 2023/2024 | 2023 | |
| Financial income | 5 | 11 | 27 | 33 |
| Financial expenses | –37 | –34 | –136 | –133 |
| Financial income and expenses | –32 | –23 | –109 | –100 |
| ACCORDING TO SEGMENT REPORTING, SEK M | JANUARY–MARCH | FULL-YEAR | |||
|---|---|---|---|---|---|
| 2024 | 2023 | 2023/2024 | 2023 | ||
| Interest-bearing net liabilities (+)/- receivables (−) at beginning of period | 1,877 | 334 | –549 | 334 | |
| Change in interest-bearing liabilities/-receivables | 854 | –882 | 3,280 | 1,544 | |
| Interest-bearing net liabilities (+)/-receivables (−) at end of period | 2,731 | –549 | 2,731 | 1,877 |
JM Residential Stockholm
The JM Residential Stockholm business segment develops residential projects in Greater Stockholm. Operations include acquisitions of development properties, planning, pre‑construction, production and sales of residential units.
The average prices on the existing home market increased during the first quarter. The total supply of residential units was high, but the supply of newly produced residential units was still at a low level.
The housing market in Stockholm continued to be cautious in the first quarter, but the general expectation that the interest rate peak has been reached has meant that customers showed increased interest for JM's projects and sales have increased compared to the corresponding period the previous year. The willingness to sign a contract early has improved compared to the previous quarter.
The absence of necessary authority decisions had a negative impact on the business segment's housing starts, which in the first quarter related to one project of 46 residential units.
Compared to the corresponding period the previous year, revenue and the operating profit decreased as a result of the low sales in earlier periods and continued price adjustments in a few ongoing projects.
Cash flow weakened compared to the corresponding period the previous year primarily due to increased working capital and a lower operating profit.
Production was started in the first quarter on 145 residential units in apartment buildings in Nacka and Sollentuna.
Approximately 220 building rights were acquired in central Sollentuna in the quarter. Occupancy and first payment occurred during the first quarter. Final payment will be made in second quarter 2026.
| JANUARY–MARCH | FULL-YEAR | |||
|---|---|---|---|---|
| SEK M | 2024 | 2023 | 2023/2024 | 2023 |
| Revenue | 882 | 1,095 | 4,035 | 4,248 |
| Operating profit 1) | –47 | 116 | –51 | 112 |
| Operating margin, % | –5.3 | 10.6 | –1.3 | 2.6 |
| Average operating capital | 5,140 | 5,021 | ||
| Return on operating capital, % | –1.0 | 2.2 | ||
| Operating cash flow | –312 | 76 | –920 | –532 |
| Carrying amount, development properties | 4,160 | 4,034 | 4,097 | |
| Number of available building rights | 12,000 | 12,900 | 12,300 | |
| Number of residential units sold | 168 | 51 | 432 | 315 |
| Number of housing starts | 145 | – | 376 | 231 |
| Number of residential units in current production | 1,680 | 2,396 | 1,906 | |
| Number of employees | 853 | 817 | 870 | |
1) Of which impairment on development and project properties – – –75 –75
JM Residential Sweden
The JM Residential Sweden business segment develops residential projects in growth areas in Sweden, excluding Greater Stockholm. Operations include acquisitions of development properties, planning, pre‑construction, production and sales of residential units.
The average prices on the existing home market for tenantowned units increased slightly on most of the business segment's submarkets in the first quarter but also decreased slightly in some locations. The prices for single-family homes either did not change or changed slightly.
On the existing home market, supply continued to be at very high levels and at higher levels than in the corresponding period the previous year. The supply of new production decreased and continued to be at very low levels, with the exception of Gothenburg.
Sales increased during the quarter with a continued major focus on sales of residential units close to occupancy or that are completed. The willingness of customers to sign a contract early was below normal, but in some projects for which production
started at the end of 2023 there was large interest in signing a contract early.
Compared to the corresponding period the previous year, revenue and operating profit decreased due to price adjustments in ongoing projects, fewer housing starts and continued high financing costs.
Cash flow was in line with the corresponding period the previous year and was burdened by increased working capital, which in part was offset by a decrease in the number of purchased residential units in the balance sheet.
No housing starts or significant acquisition of building rights occurred in the first quarter.
| JANUARY–MARCH | APRIL–MARCH | FULL-YEAR | |||
|---|---|---|---|---|---|
| SEK M | 2024 | 2023 | 2023/2024 | 2023 | |
| Revenue | 600 | 1,129 | 2,947 | 3,476 | |
| Operating profit 1) | 17 | 126 | 30 | 139 | |
| Operating margin, % | 2.9 | 11.2 | 1.0 | 4.0 | |
| Average operating capital | 2,550 | 2,431 | |||
| Return on operating capital, % | 1.2 | 5.7 | |||
| Operating cash flow | –135 | –135 | –424 | –424 | |
| Carrying amount, development properties | 1,917 | 2,150 | 1,927 | ||
| Number of available building rights | 11,700 | 12,100 | 11,900 | ||
| Number of residential units sold | 172 | 113 | 593 | 534 | |
| Number of housing starts | – | 139 | 304 | 443 | |
| Number of residential units in current production | 1,060 | 1,958 | 1,477 | ||
| Number of employees | 452 | 561 | 472 | ||
| 1) Of which impairment in development properties | – | – | –75 | –75 |
JM Norway
The business segment develops residential projects in Norway. Operations include acquisitions of development properties, planning, pre‑construction, production and sales of residential units.
The market has improved since the start of the year, and the price level on the existing home market increased in the first quarter. At the end of the quarter, prices were slightly higher than at the end of the corresponding period the previous year.
Norway's central bank has indicated that the interest rate peak has been reached and left the key rate unchanged at its interest rate meeting in March. The market expects interest rate decreases during the second half of the year, which is sending positive signals to consumers.
Sales of residential units on the existing home market were slightly lower than in the corresponding period the previous year. The sale of newly produced residential units on the Norwegian market continued to be lower than in the corresponding period the previous year, but demand for JM's residential units has improved and sales were in line with the corresponding period the previous year.
Compared to the corresponding period the previous year, revenue and operating profit improved primarily due to the sale of developed land for housing projects in the Oslo area.
Cash flow weakened compared to the corresponding period the previous year, primarily due to payments made for land investments.
No housing starts or significant acquisition of building rights occurred in the first quarter.
| JANUARY–MARCH | FULL-YEAR | ||||
|---|---|---|---|---|---|
| SEK M | 2024 | 2023 | 2023/2024 | 2023 | |
| Revenue | 690 | 632 | 2,648 | 2,589 | |
| Operating profit 1) | 70 | 42 | 176 | 149 | |
| Operating margin, % | 10.1 | 6.7 | 6.7 | 5.7 | |
| Average operating capital | 2,140 | 2,063 | |||
| Return on operating capital, % | 8.2 | 7.2 | |||
| Operating cash flow | –246 | –12 | –196 | 38 | |
| Carrying amount, development properties | 1,231 | 957 | 1,328 | ||
| Carrying amount, project properties | – | 17 | – | ||
| Number of available building rights | 6,200 | 6,900 | 6,400 | ||
| Number of residential units sold 2) | 62 | 77 | 473 | 488 | |
| Number of housing starts 2) | – | 41 | 364 | 405 | |
| Number of residential units in current production | 852 | 1,105 | 1,071 | ||
| Number of employees | 303 | 360 | 312 | ||
| 1) Of which impairment on development properties | – | – | –11 | –11 | |
| 2) Of which residential units to investors | – | – | 156 | 156 |
JM Finland
The business segment develops residential projects in Finland. Operations include acquisitions of development properties, planning, pre‑construction, production and sales of residential units.
The activity on the housing market in the Helsinki region continued to be low during the first quarter. The high interest rates and general uncertainty had a negative impact on customers' willingness to buy a home. At the same time, inflation continued to decrease, and the market rate was left unchanged in the first quarter.
The price level on the existing home market was stable during the first quarter but at the end of the quarter was at a lower level than in the corresponding period the previous year.
The number of transactions on the market continued to be low, but JM's sales improved compared to the corresponding period the previous year. During the first quarter, 50 completed residential units were sold and handed over to a joint venture owned by JM and an external investor.
The business unit's revenue and profit decreased compared to the corresponding period the previous year, which is primarily due to price adjustments in completed projects and low recognition in ongoing production.
Cash flow was strengthened compared to the corresponding period the previous year, primarily due to decreased working capital.
In the quarter, 80 residential building rights were acquired in Tampere. There were no housing starts.
| JANUARY–MARCH | FULL-YEAR | ||||
|---|---|---|---|---|---|
| SEK M | 2024 | 2023 | 2023/2024 | 2023 | |
| Revenue | 388 | 439 | 1,540 | 1,591 | |
| Operating profit 1) | 26 | 38 | 128 | 140 | |
| Operating margin, % | 6.7 | 8.6 | 8.3 | 8.8 | |
| Average operating capital | 1,769 | 1,718 | |||
| Return on operating capital, % | 7.3 | 8.1 | |||
| Operating cash flow | 85 | –29 | 57 | –56 | |
| Carrying amount, development properties | 1,181 | 1,040 | 1,115 | ||
| Number of available building rights | 6,700 | 6,900 | 6,900 | ||
| Number of residential units sold 2) | 78 | 20 | 404 | 346 | |
| Number of housing starts 3) | – | 34 | 341 | 375 | |
| Number of residential units in current production | 814 | 1,030 | 917 | ||
| Number of employees | 164 | 192 | 168 | ||
| 1) Of which impairment on development properties | – | – | –3 | –3 | |
| 2) Of which residential units to investors | 50 | – | 340 | 290 | |
| 3) Of which residential units to investors | – | – | 290 | 290 |
JM Property Development
The JM Property Development business segment primarily develops rental units, residential care units and commercial properties in Greater Stockholm. The business segment's entire portfolio comprises project development properties. The operations include JM@home, which offers economic and technical management services to tenant-owners associations as well as housing services.
Business segment revenue decreased compared to the corresponding period the previous year due to the sale of the rental project Kvarter 8, which was completed in the first quarter of 2023. Operating profit was in line with the previous year due to indexation of purchase sums in ongoing office projects.
Cash flow for the quarter was burdened by investments in ongoing projects and weakened compared to the previous year when deposits for sold units under construction and project financing for ongoing projects were received.
The business segment has three projects in current production, for which profit and revenue recognition occurs gradually during construction: the office project K1 Karlbergs Strand, with estimated completion in the first quarter of 2025, the rental project Kvarter 8, with estimated completion in the third quarter of 2024, and the residential care building Pilhamns Gårdar, with estimated completion in the fourth quarter of 2024.
Production is ongoing in an additional three rental projects in JM's own balance sheet: Igelsta Trädkrona in Södertälje, with 96 rental units; Dyrvers Kulle in Sundbyberg, with 123 rental units; and Flora in Järfälla, with 155 rental units.
| JANUARY–MARCH | FULL-YEAR | ||||
|---|---|---|---|---|---|
| SEK M | 2024 | 2023 | APRIL–MARCH 2023/2024 |
2023 | |
| Revenue | 367 | 566 | 1,260 | 1,458 | |
| Operating profit 1) 2) 3) | 104 | 104 | 249 | 248 | |
| Operating margin, % | 28.4 | 18.3 | 19.8 | 17.0 | |
| Average operating capital | 1,294 | 1,372 | |||
| Return on operating capital, % | 19.2 | 18.1 | |||
| Operating cash flow | –84 | 919 | –179 | 824 | |
| Carrying amount, project properties | 1,138 | 783 | 1,030 | ||
| Number of available building rights | 1,700 | 1,700 | 1,600 | ||
| Number of residential units sold 4) | – | 218 | – | 218 | |
| Number of housing starts 4) | – | – | 155 | 155 | |
| Number of residential units in current production | 662 | 507 | 662 | ||
| Number of employees | 73 | 77 | 77 | ||
| 1) Of which impairment in project properties | – | – | –77 | −77 | |
| 2) Of which property sales | – | – | 14 | 14 | |
| 3) Of which income from joint venture | 1 | –4 | – | –5 |
4) Refers to rental units
CASH FLOW JM PROPERTY DEVELOPMENT
Sustainable development
Sustainability is an integrated part of JM's residential and urban development, from the acquisition of land and throughout the entire design phase until the customers move in and are living in Swan Ecolabel homes in areas that promote a sustainable lifestyle. Structured work environment initiatives, efforts to prevent accidents, quality-assured supplier chains, and active efforts to improve diversity and equal opportunity are central components of JM's sustainability work.
JM is working to reduce its impact on the climate in each stage of the construction process and would also like to inspire other actors to reduce their climate impact. As of the first quarter, JM is part of Klimatarena Stockholm, which is a regional platform for firms, public actors and academics in Stockholm County. The aim is to be able to collaborate on innovations, procurement requirements, and the exchange of experiences. The goal is to change the norm in Stockholm County and make it a standard to build with at least half of the climate impact. At JM, we view it as a possibility to be inspired and to inspire others.
Solar panels have become an important factor when selling newly produced apartment buildings for investors. In addition to them enabling a better energy classification, they contribute to higher net rental income, which is an important factor for increased property value when sold. JM has therefore decided to install solar panels in all new production of in-house rental projects in Sweden. Depending on the project's conditions, the solar panel installations will correspond to approximately 80,000–115,000 kWh/year per project.
In order to achieve JM's long-term climate goal – to have emissions close to zero by 2030 – the climate impact from concrete must be lowered annually by around 10 percent.
As part of this, JM decided to introduce climate-improved concrete with 20 percent less of a climate footprint in the majority of prefabricated concrete elements. The decision applies to all projects in Sweden and half of the projects in Norway. The effect of the decision entails a decrease of around 3 kg CO2e/m2 GFA.
During the first quarter, two projects were completed with higher waste volume than the average. Analyses have shown that the projects that successfully have less waste than anticipated are the projects that do not have a garage, have an engaged waste coordinator, and do not entail demolition of existing building consisting of heavy materials such as concrete and brick. Finally, the projects that have the possibility of ordering a larger share of prefabricated material generate less waste per GFA, excluding a garage.
JM introduced a requirement on Nordic Swan Ecolabel housing production in 2018. In 2023, all completed residential units that were produced in-house were Nordic Swan Ecolabelled. During the first quarter, a project was completed for which the building permit was granted in 2017. As a result, the project was granted deviation from the requirements on Nordic Swan Ecolabelling and thus as expected could not receive Nordic Swan Ecolabel marking at completion.
| GOALS 2033 | OPERATIONAL TARGET 2026 | JAN–MARCH 2024 |
JAN–MARCH 2023 |
APRIL–MARCH 2023/2024 |
FY 2023 |
|---|---|---|---|---|---|
| JM has the industry's best work environment and zero workplace accidents |
No serious (according to national work environment authority's definition) accidents for own staff or subcontractors |
3 (Sweden) 1 (Norway) 0 (Finland) |
2 (Sweden) 0 (Norway) 0 (Finland) |
10 (Sweden) 2 (Norway) 1 (Finland) |
9 (Sweden) 1 (Norway) 1 (Finland) |
| 20 percent women among JM's wage earners |
Percentage of women among JM's wage earners at least 10 percent |
6.6% | 7.5% | 7.0% | 7.0% |
| JM is striving for an even gender distribution and diversity among its employees (at least 40/60 women/men) |
Even gender distribution among salaried employees, at least 35/65 women/men |
38/62 | 39/61 | 38/62 | 38/62 |
| Even gender distribution among managers, at least 35/65 women/men |
32/68 | 30/70 | 31/69 | 31/69 | |
| Total amount of construction waste reduced to 15 kg/GFA (gross floor area) by 2030 |
Total amount of construction waste reduced to max 25/GFA excl. garage |
41 (Sweden) 34 (Norway) 30 (Finland) |
29 (Sweden) 24 (Norway) 61 (Finland) |
35 (Sweden) 30 (Norway) 39 (Finland) |
32 (Sweden) 29 (Norway) 40 (Finland) |
| JM's operations have climate-affecting emissions close to zero |
Estimated energy demand for residential units is 10 percent lower than applicable norm in Sweden, 25 percent lower than applicable norm in Norway, and 15 percent lower than applicable norm in Finland |
18% (Sweden) 28% (Norway) 17% (Finland) |
16% (Sweden) 55% (Norway) 10% (Finland) |
19% (Sweden) 28% (Norway) 17% (Finland) |
27% (Sweden) 31% (Norway) 17% (Finland) |
| All projects in our own operations must receive Nordic Swan Ecolabel certification |
All completed projects in our own operations during the period must receive Nordic Swan Ecolabel certification |
80% | 90% | 97% | 90% 1) |
| JM's residential units must have a low energy consumption |
kWh/m2 (A-temp in Sweden and GFA in Norway and Finland) |
65 (Sweden) 53 (Norway) 75 (Finland) |
59 (Sweden) 33 (Norway) 81 (Finland) |
62 (Sweden) 54 (Norway) 75 (Finland) |
60 (Sweden) 53 (Norway) 78 (Finland) |
1) All projects completed during the year – not just those in-house.
Other information
Other activities
Other activities includes primarily external contracting work that is conducted by JM AB's subsidiary JM Entreprenad AB. Net sales for the first quarter amounted to SEK 118m (197) and operating profit to SEK 1m (2).
Risks and uncertainty factors
JM's risk and risk management policies are presented in the 2023 annual and sustainability report on pages 63–64. The risk assessment has not changed in relation to what is presented there.
Dividend
The Annual General Meeting held on April 18, 2024, resolved on a dividend of SEK 3.00 (14.00) per share, for a total of SEK 194m (903). The dividend will be sent on Thursday, April 25, 2024.
Provided that the outlook for the housing market moving forward improves to a reasonable extent, JM's ambition is to convene for an extraordinary general meeting in the fourth quarter of 2024 to propose resolution on an additional dividend of SEK 3.00.
Holdings of own shares
As at the end of Q1 2024, JM holds no own shares. The number of outstanding shares on March 31, 2024, amounts to 64,504,840.
Personnel
As at the end of the first quarter, there were 2,131 employees (2,457), of which 807 (913) were wage-earners, and 1,324 (1,544) were salaried employees.
Related parties
No significant transactions with related parties occurred during the period other than the normal transactions between JM's Group companies and joint arrangements. The transactions occurred at market terms.
Significant events after the end of the quarter
JM's board has appointed Mikael Åslund as the new President and CEO from June 1, 2024. He will succeed Johan Skoglund, who will retire at the same time.
JM has signed an agreement with Bonnier Fastigheter AB for the sale of the rental property Dyrvers Kulle (Lådmakaren 5) in Rissne, Sundbyberg. The transaction, which amounts to SEK 410m and results in gains from the sale of the property of approximately SEK 3m, will be reported in the second quarter 2024 in the business segment JM Property Development. Full payment will be received in conjunction with the transfer of the legal title in the second quarter 2024.
Group – segment reporting
CONDENSED CONSOLIDATED INCOME STATEMENT
| ACCORDING TO SEGMENT REPORTING, SEK M | JANUARY–MARCH | FULL-YEAR | |||
|---|---|---|---|---|---|
| 2024 | 2023 | 2023/2024 | 2023 | ||
| Revenue | 3,034 | 3,962 | 12,923 | 13,851 | |
| Production and operating costs | –2,653 | –3,290 | –11,241 | –11,877 | |
| Gross profit | 381 | 673 | 1,682 | 1,973 | |
| Selling and administrative expenses | –222 | –252 | –956 | –985 | |
| Gains/losses on the sale of property, etc. 1) | 1 | –4 | –251 | –256 | |
| Operating profit | 160 | 417 | 475 | 732 | |
| Financial income and expenses | –32 | –23 | –109 | –100 | |
| Profit before tax | 128 | 394 | 366 | 632 | |
| Taxes | –49 | –83 | –165 | –199 | |
| Profit for the period | 79 | 311 | 201 | 433 | |
| Other comprehensive income | 80 | –3 | –122 | –205 | |
| Comprehensive income for the period | 159 | 308 | 80 | 229 | |
| Earnings per share 2) , diluted, SEK | 1.20 | 4.80 | 3.10 | 6.70 | |
| Average number of shares, diluted | 64,504,840 | 64,815,685 | 64,504,840 | 64,504,840 | |
| 1) Of which impairment | – | – | –258 | –258 | |
| 2) Net profit/loss for the period |
CONDENSED CONSOLIDATED BAL ANCE SHEET
| ACCORDING TO SEGMENT REPORTING, SEK M | 03/31/2024 | 03/31/2023 | 12/31/2023 |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | 377 | 339 | 351 |
| Project properties | 1,138 | 800 | 1,030 |
| Development properties | 8,529 | 8,239 | 8,504 |
| Participations in tenant-owners associations, etc. | 566 | 363 | 803 |
| Current receivables 1) | 5,172 | 4,856 | 4,541 |
| Cash and cash equivalents | 566 | 2,577 | 1,582 |
| Total current assets | 15,970 | 16,835 | 16,461 |
| Total assets | 16,347 | 17,175 | 16,812 |
| EQUITY AND LIABILITIES 2) | |||
| Equity | 8,491 | 9,314 | 8,332 |
| Non-current interest-bearing liabilities | 280 | 257 | 397 |
| Other non-current liabilities | 364 | 413 | 364 |
| Non-current provisions | 2,398 | 2,591 | 2,559 |
| Total non-current liabilities | 3,042 | 3,261 | 3,319 |
| Current interest-bearing liabilities | 1,499 | 461 | 1,526 |
| Other current liabilities | 3,206 | 4,013 | 3,522 |
| Current provisions | 109 | 126 | 113 |
| Total current liabilities | 4,814 | 4,600 | 5,161 |
| Total equity and liabilities | 16,347 | 17,175 | 16,812 |
| 1) Of which receivables from property sales | 274 | 74 | 57 |
| 2) Of which liabilities for property acquisition | 774 | 535 | 806 |
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
| JANUARY–MARCH | FULL-YEAR | |
|---|---|---|
| ACCORDING TO SEGMENT REPORTING, SEK M | 2024 | 2023 2023 |
| Opening balance at beginning of the period | 8,332 9,006 |
9,006 |
| Total comprehensive income for the period | 159 | 308 229 |
| Dividend | – | – –903 |
| Closing balance at end of the period | 8,491 9,314 |
8,332 |
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
| ACCORDING TO SEGMENT REPORTING, SEK M | JANUARY–MARCH | FULL-YEAR | ||
|---|---|---|---|---|
| 2024 | 2023 | 2023/2024 | 2023 | |
| Cash flow from operating activities before change | ||||
| in working capital and taxes | –86 | 313 | 403 | 801 |
| Tax paid | –159 | –153 | –350 | –344 |
| Investment in development properties | –196 | –67 | –1,467 | –1,338 |
| Payment on account for development properties | 179 | 229 | 1,041 | 1,091 |
| Investment in participations in tenant-owners associations, etc. | –220 | –306 | –1,584 | –1,671 |
| Sale of participations in tenant-owners associations, etc. | 389 | 163 | 1,412 | 1,186 |
| Investment in project properties | –108 | –149 | –388 | –429 |
| Sale of project properties | – | – | 46 | 46 |
| Change in current liabilities/receivables | –749 | 762 | –901 | 610 |
| Cash flow from operating activities | –949 | 792 | –1,788 | –48 |
| Cash flow from investing activities | –11 | 1 | –14 | –2 |
| Loans raised | 421 | 62 | 1,335 | 976 |
| Amortization of liabilities | –488 | –101 | –632 | –245 |
| Dividends | – | – | –903 | –903 |
| Cash flow from financing activities | –67 | –39 | –200 | –172 |
| Cash flow for the period | –1,027 | 753 | –2,002 | –221 |
| Exchange rate difference, cash and cash equivalents | 11 | –17 | –9 | –37 |
| Cash and cash equivalents at end of the period | 566 | 2,577 | 566 | 1,582 |
GROUP KEY FIGURES
| ACCORDING TO SEGMENT REPORTING, % | JANUARY–MARCH | APRIL–MARCH | FULL-YEAR | ||
|---|---|---|---|---|---|
| 2024 | 2023 | 2023/2024 | 2023 | ||
| Operating margin | 5.3 | 10.5 | 3.7 | 5.3 | |
| Return on equity | 2.3 | 5.0 | |||
| Return on capital employed | 4.3 | 6.7 | |||
| Debt/equity ratio, multiple | 0.3 | – | 0.2 | ||
| Equity/assets ratio | 52 | 54 | 50 |
Group – IFRS
CONDENSED CONSOLIDATED INCOME STATEMENT
| JANUARY–MARCH | APRIL–MARCH | FULL-YEAR | ||
|---|---|---|---|---|
| ACCORDING TO IFRS, SEK M | 2024 | 2023 | 2023/2024 | 2023 |
| Revenue | 2,765 | 4,696 | 14,038 | 15,969 |
| Production and operating costs | –2,414 | –3,790 | –11,830 | –13,205 |
| Gross profit | 350 | 907 | 2,208 | 2,764 |
| Selling and administrative expenses | –225 | –255 | –968 | –998 |
| Gains/losses on the sale of property, etc. 1) | 1 | –4 | –251 | –256 |
| Operating profit | 126 | 648 | 988 | 1,510 |
| Financial income and expenses | –37 | –30 | –133 | –125 |
| Profit before tax | 89 | 618 | 855 | 1,385 |
| Taxes | –41 | –131 | –266 | –356 |
| Profit for the period | 48 | 488 | 590 | 1,029 |
| Other comprehensive income | ||||
| Items that will be reclassified as income | ||||
| Translation differences from the translation of foreign operations | 51 | –91 | 32 | –110 |
| Items that will not be reclassified as income | ||||
| Restatement of defined-benefit pensions | 35 | 124 | –194 | –105 |
| Tax attributable to other comprehensive income | –7 | –26 | 40 | 22 |
| Comprehensive income for the period | 127 | 495 | 467 | 835 |
| Net profit for the period is attributable to shareholders of the Parent Company | 48 | 488 | 590 | 1,029 |
| Comprehensive income for the period is attributable to shareholders | ||||
| of the Parent Company | 127 | 495 | 467 | 835 |
| Earnings per share 2), basic, attributable to shareholders of the Parent Company, SEK | 0.70 | 7.60 | 9.10 | 16.00 |
| Earnings per share 2), diluted, attributable to shareholders of the Parent Company, SEK | 0.70 | 7.50 | 9.10 | 16.00 |
| Number of outstanding shares at end of the period | 64,504,840 | 64,504,840 | 64,504,840 | 64,504,840 |
| Average number of shares, basic | 64,504,840 | 64,504,840 | 64,504,840 | 64,504,840 |
| Average number of shares, diluted | 64,504,840 | 64,815,685 | 64,504,840 | 64,504,840 |
| 1) Of which impairment | – | – | –258 | –258 |
2) Net profit/loss for the period
CONDENSED CONSOLIDATED BALANCE SHEET
| ACCORDING TO IFRS, SEK M | 03/31/2024 | 03/31/2023 | 12/31/2023 |
|---|---|---|---|
| ASSETS | |||
| Non-current assets 1) | 539 | 551 | 532 |
| Project properties | 1,138 | 800 | 1,030 |
| Development properties | 8,529 | 8,239 | 8,504 |
| Utilization of site leasehold rights | 340 | 536 | 476 |
| Participations in tenant-owners associations, etc. | 922 | 363 | 1,023 |
| Work in progress | 13,565 | 14,289 | 13,203 |
| Current receivables | 4,190 | 4,232 | 3,633 |
| Cash and cash equivalents 2) | 673 | 2,777 | 1,673 |
| Total current assets | 29,356 | 31,236 | 29,542 |
| Total assets | 29,895 | 31,788 | 30,073 |
| EQUITY AND LIABILITIES 3) 4) 5) | |||
| Equity | 8,098 | 8,535 | 7,972 |
| Non-current interest-bearing liabilities | 687 | 901 | 951 |
| Other non-current liabilities | 364 | 413 | 364 |
| Non-current provisions | 2,301 | 2,393 | 2,470 |
| Total non-current liabilities | 3,351 | 3,706 | 3,785 |
| Current interest-bearing liabilities | 15,098 | 14,858 | 15,089 |
| Other current liabilities | 3,239 | 4,563 | 3,115 |
| Current provisions | 109 | 126 | 113 |
| Total current liabilities | 18,446 | 19,547 | 18,317 |
| Total equity and liabilities | 29,895 | 31,788 | 30,073 |
| Pledged assets | 6,018 | 6,273 | 6,164 |
| Contingent liabilities | 1,842 | 1,998 | 1,776 |
| 1) Of which right-of-use offices and cars | 161 | 212 | 179 |
| 2) Of which cash and cash equivalents in tenant-owners associations | 107 | 200 | 91 |
| 3) Of which project financing | 13,977 | 15,747 | 13,890 |
| 4) Of which liabilities for property acquisition 5) Of which current and non-current interest-bearing leasing liabilities |
774 483 |
535 732 |
806 637 |
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
| JANUARY–MARCH FULL-YEAR | |||
|---|---|---|---|
| ACCORDING TO IFRS, SEK M | 2024 | 2023 | 2023 |
| Opening balance at beginning of the period | 7,972 | 8,039 | 8,039 |
| Total comprehensive income for the period | 127 | 495 | 835 |
| Dividend | – | – | –903 |
| Closing balance at end of the period | 8,098 | 8,535 | 7,972 |
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
| ACCORDING TO IFRS, SEK M | JANUARY–MARCH | FULL-YEAR | ||
|---|---|---|---|---|
| 2024 | 2023 | 2023/2024 | 2023 | |
| Cash flow from operating activities before change in | ||||
| working capital and taxes | –20 | 564 | 1,582 | 2,166 |
| Tax paid | –159 | –154 | –349 | –344 |
| Investment in development properties | –196 | –67 | –1,467 | –1,338 |
| Payment on account for development properties | 101 | 57 | 628 | 585 |
| Investment in participations in tenant-owners associations, etc. | –220 | –306 | –1,584 | –1,671 |
| Sale of participations in tenant-owners associations, etc. | 389 | 163 | 1,412 | 1,186 |
| Investment in project properties | –108 | –149 | –388 | –429 |
| Sale of project properties | – | – | 46 | 46 |
| Change in current liabilities/receivables | –700 | 1,006 | –850 | 855 |
| Cash flow from operating activities | –912 | 1,115 | –970 | 1,057 |
| Cash flow from investing activities | –11 | 1 | –14 | –2 |
| Loans raised | 2,487 | 3,445 | 11,427 | 12,385 |
| Amortization of liabilities | –2,575 | –3,917 | –11,637 | –12,979 |
| Dividends | – | – | –903 | –903 |
| Cash flow from financing activities | –88 | –472 | –1,112 | –1,496 |
| Cash flow for the period | –1,011 | 644 | –2,096 | –441 |
| Exchange rate difference, cash and cash equivalents | 11 | –17 | –9 | –37 |
| Cash and cash equivalents at end of the period | 673 | 2,777 | 673 | 1,673 |
GROUP KEY FIGURES
| JANUARY–MARCH | APRIL–MARCH FULL-YEAR | ||||
|---|---|---|---|---|---|
| ACCORDING TO IFRS, % | 2024 | 2023 | 2023/2024 | 2023 | |
| Operating margin | 4.6 | 13.8 | 7.0 | 9.5 | |
| Debt/equity ratio, multiple | 2.1 | 1.7 | 2.0 | ||
| Equity/assets ratio | 27 | 27 | 27 |
Parent Company
CONDENSED INCOME STATEMENT, PARENT COMPANY
| SEK M | JANUARY–MARCH | ||
|---|---|---|---|
| 2024 | 2023 | 2023 | |
| Net sales | 1,741 | 2,468 | 8,547 |
| Production and operating costs | –1,648 | –2,118 | –7,588 |
| Gross profit | 93 | 349 | 959 |
| Selling and administrative expenses | –189 | –236 | –744 |
| Gains/losses on the sale of property, etc. | – | – | 6 |
| Operating profit | –97 | 114 | 221 |
| Financial income and expenses | –24 | 61 | –204 |
| Profit before appropriations and tax | –121 | 175 | 17 |
| Appropriations | – | –2 | 249 |
| Profit before tax | –121 | 173 | 265 |
| Taxes | – | –24 | –160 |
| Profit for the period | –121 | 149 | 105 |
CONDENSED BALANCE SHEET, PARENT COMPANY
| SEK M | 3/31/2024 | 3/31/2023 | 12/31/2023 |
|---|---|---|---|
| Assets | |||
| Non-current assets | 2,646 | 2,955 | 2,601 |
| Total current assets | 9,960 | 12,153 | 10,311 |
| Total assets | 12,606 | 15,108 | 12,913 |
| Equity and liabilities | |||
| Equity | 3,485 | 4,459 | 3,605 |
| Untaxed reserves | 1,900 | 2,300 | 1,900 |
| Provisions | 1,431 | 1,435 | 1,522 |
| Non-current liabilities | 352 | 426 | 352 |
| Current liabilities | 5,438 | 6,488 | 5,534 |
| Total equity and liabilities | 12,606 | 15,108 | 12,913 |
| Pledged assets | 100 | 100 | 100 |
| Contingent liabilities | 10,072 | 9,284 | 10,524 |
Notes
Note 1 Accounting principles
This interim report for the first quarter of 2024 has been prepared in accordance with IAS 34 Interim Financial Reporting and the Swedish Annual Accounts Act. The consolidated accounts were prepared in accordance with the International Financial Reporting Standards (IFRS). Since the Parent Company is an enterprise within the EU, only EU-approved IFRS are applied. The Parent Company's accounts were prepared in accordance with RFR 2.
Amended standards as of 2024
No amendments to standards and interpretations that entered into force on January 1, 2024, have had a material impact on this financial statement.
Change in accounting principle operating segment
As of January 1, 2024, the operating segment JM Construction has been absorbed into the Group since the business no longer is of such a scope that it constitutes its own business segment. The accounting principles and methods of calculation for the Group have also not changed compared to the description on pages 71–75 in the 2023 Annual and Sustainability Report.
Segment reporting
JM's segment reporting primarily differs from IFRS in three respects:
- In the segment reporting, revenue from the Group's housing development is recognized gradually over time.
- In addition, project financing within JM Norway and JM Finland and parts of the project financing in JM Residential Stockholm, JM Residential Sweden and JM Property Development are recorded as a deduction item to "Revenue less progress billings" or "Progress billings in excess of recognized revenue" and raised/repaid project financing is reported in the cash flow from operating activities.
- The reporting of leases in accordance with IFRS 16 is not applied in the segment reporting.
JM makes the assessment that segment reporting most accurately reflects the economic implications of JM's business at the same time as it correlates well with the Group's internal governance, which is based on the Group's cash flows, risk profile and capital allocation.
Note 2 Breakdown of revenue
REVENUE BY COUNTRY
| ACCORDING TO SEGMENT REPORTING, SEK M | JANUARY–MARCH | FULL-YEAR | |||
|---|---|---|---|---|---|
| 2023 | 2023/2024 | 2023 | |||
| Sweden | 1,955 | 2,892 | 8,734 | 9,671 | |
| Norway | 690 | 632 | 2,648 | 2,589 | |
| Finland | 388 | 439 | 1,540 | 1,591 | |
| Other | – | – | – | – | |
| Total | 3,034 | 3,962 | 12,923 | 13,851 |
REVENUE BY BUSINESS SEGMENT
| JANUARY–MARCH | APRIL–MARCH | FULL-YEAR | |||
|---|---|---|---|---|---|
| ACCORDING TO SEGMENT REPORTING, SEK M | 2024 | 2023 | 2023/2024 | 2023 | |
| JM Residential Stockholm | 882 | 1,095 | 4,035 | 4,248 | |
| JM Residential Sweden | 600 | 1,129 | 2,947 | 3,476 | |
| JM Norway | 690 | 632 | 2,648 | 2,589 | |
| JM Finland | 388 | 439 | 1,540 | 1,591 | |
| JM Property Development | 367 | 566 | 1,260 | 1,458 | |
| Other | 107 | 102 | 493 | 488 | |
| Total | 3,034 | 3,962 | 12,923 | 13,851 |
PROFIT/LOSS COMPONENTS, HOUSING BUSINESS, PERCENTAGE OF COMPLETION METHOD (GROSS PROFIT)
| JANUARY–MARCH | OCT–DECEMBER JULY–SEPTEMBER | APRIL–JUNE JANUARY–MARCH | |||
|---|---|---|---|---|---|
| ACCORDING TO SEGMENT REPORTING, SEK M | 2024 | 2023 | 2023 | 2023 | 2023 |
| Cost-based effect | 144 | 219 | 201 | 313 | 292 |
| Revaluation effect | 45 | –22 | 80 | 168 | 231 |
| Sales effect | 54 | 65 | 8 | –24 | 5 |
| Total | 243 | 262 | 289 | 457 | 528 |
The percentage of completion method in JM and the accounting of gross profit for the housing business consists of three components: incurred costs (cost-based effect), assessment of expected margin (revaluation effect), and sales rate of projects (sales effect).
Profit/loss components are reported quarterly and are not accumulated. The table starts with the business segments' gross operating profit (excluding net rental income from project and development properties) for the housing business. For definitions of profit/loss components in the housing business, see the document entitled "Definitions key financial figures" at jm.se/en/ about-us/investors
REVALUATION EFFECTS – HOUSING BUSINESS
| JANUARY–MARCH | OCT–DECEMBER JULY–SEPTEMBER | APRIL–JUNE JANUARY–MARCH | |||
|---|---|---|---|---|---|
| ACCORDING TO SEGMENT REPORTING, SEK M | 2024 | 2023 | 2023 | 2023 | 2023 |
| JM Residential Stockholm | –54 | –60 | 10 | 27 | 53 |
| JM Residential Sweden | 13 | 12 | 15 | 70 | 118 |
| JM Norway | 65 | 35 | 29 | 49 | 39 |
| JM Finland | 21 | –9 | 26 | 22 | 21 |
| Total | 45 | –22 | 80 | 168 | 231 |
Note 3 Reconciliation between segment reporting and IFRS
CONSOLIDATED INCOME STATEMENT
| JANUARY–MARCH | APRIL–MARCH | FULL-YEAR | |||
|---|---|---|---|---|---|
| SEK M | 2024 | 2023 | 2023/2024 | 2023 | |
| Revenue for the period (segment reporting) | 3,034 | 3,962 | 12,923 | 13,851 | |
| Recalculation to the completed contract method | –270 | 734 | 1,115 | 2,119 | |
| Revenue for the period (IFRS) | 2,765 | 4,696 | 14,038 | 15,969 | |
| Operating profit/loss for the period (segment reporting) | 160 | 417 | 475 | 732 | |
| Recalculation to the completed contract method | –40 | 224 | 489 | 753 | |
| Leases IFRS 16 | 5 | 6 | 24 | 24 | |
| Operating profit/loss for the period (IFRS) | 126 | 648 | 988 | 1,510 | |
| Profit/loss for the period (segment reporting) | 79 | 311 | 201 | 433 | |
| Recalculation to the completed contract method | –32 | 176 | 388 | 596 | |
| Leases IFRS 16 | – | – | –1 | –1 | |
| Profit/loss for the period (IFRS) | 48 | 488 | 590 | 1,029 |
CONSOLIDATED BAL ANCE SHEET
| SEK M | 03/31/2024 | 03/31/2023 | 12/31/2023 |
|---|---|---|---|
| Balance sheet total (segment reporting) | 16,347 | 17,175 | 16,812 |
| Recalculation to the completed contract method | –909 | –1,863 | –1,262 |
| Reclassification project financing, interest-bearing | 7,870 | 6,790 | 7,302 |
| Additional project financing Swedish tenant-owners associations | 5,652 | 7,519 | 6,179 |
| Reclassification project financing, non-interest-bearing 1) | 455 | 1,438 | 410 |
| Leases IFRS 16 | 479 | 729 | 633 |
| Balance sheet total (IFRS) | 29,895 | 31,788 | 30,073 |
1) Billing on account to customers.
CONSOLIDATED EQUITY
| SEK M | 03/31/2024 | 03/31/2023 | 12/31/2023 |
|---|---|---|---|
| Equity (segment reporting) | 8,491 | 9,314 | 8,332 |
| Recalculation to the completed contract method | –389 | –777 | –357 |
| Leases IFRS 16 | –4 | –3 | –3 |
| Equity (IFRS) | 8,098 | 8,535 | 7,972 |
CONSOLIDATED CASH FLOW
| JANUARY–MARCH | APRIL–MARCH FULL-YEAR | ||||
|---|---|---|---|---|---|
| SEK M | 2024 | 2023 | 2023/2024 | 2023 | |
| Cash flow from operating activities (segment reporting) | –949 | 792 | –1,788 | –48 | |
| Reclassification project financing | –533 | –497 | –525 | –489 | |
| Reclassification Swedish tenant-owners associations | 542 | 792 | 1,238 | 1,488 | |
| Leases IFRS 16 | 27 | 27 | 105 | 106 | |
| Cash flow from operating activities according to IFRS | –912 | 1,115 | –970 | 1,057 |
CONSOLIDATED INTEREST- BEARING NET LIABILITIES/RECEIVABLES
| SEK M | 03/31/2024 | 03/31/2023 | 12/31/2023 |
|---|---|---|---|
| Interest-bearing net liabilities (+)/receivables (−) at end of period | |||
| (segment reporting) | 2,731 | –549 | 1,877 |
| Reclassification project financing | 7,870 | 6,790 | 7,302 |
| Additional project financing Swedish tenant-owners associations | 5,545 | 7,319 | 6,087 |
| Leases IFRS 16 | 483 | 732 | 637 |
| Interest-bearing net liabilities (+)/receivables (−) at end of period (IFRS) | 16,629 | 14,291 | 15,903 |
Note 4 Development properties
DEVELOPMENT PROPERTIES BY BUSINESS SEGMENT
| CARRYING AMOUNT, SEK M | 03/31/2024 | 03/31/2023 | 12/31/2023 |
|---|---|---|---|
| JM Residential Stockholm | 4,160 | 4,034 | 4,097 |
| JM Residential Sweden | 1,917 | 2,150 | 1,927 |
| JM Norway | 1,231 | 957 | 1,328 |
| JM Finland | 1,181 | 1,040 | 1,115 |
| JM Property Development | – | – | – |
| Other | 40 | 58 | 38 |
| Total | 8,529 | 8,239 | 8,504 |
DEVELOPMENT PROPERTIES, GROUP
| JANUARY–MARCH | APRIL–MARCH | FULL-YEAR | |||
|---|---|---|---|---|---|
| CARRYING AMOUNT, SEK M | 2024 | 2023 | 2023/2024 | 2023 | |
| Carrying amount at beginning of the period | 8,504 | 8,465 | 8,239 | 8,465 | |
| Acquisitions | 157 | 86 | 1,699 | 1,628 | |
| Transferred to production | –177 | –229 | –777 | –829 | |
| Other 1) | 45 | –82 | –633 | –760 | |
| Carrying amount at end of the period | 8,529 | 8,239 | 8,529 | 8,504 | |
| 1) Of which impairment | – | – | –181 | –181 |
AVAILABLE RESIDENTIAL BUILDING RIGHTS BY BUSINESS SEGMENT
| NUMBER | 03/31/2024 | 03/31/2023 | 12/31/2023 |
|---|---|---|---|
| JM Residential Stockholm | 12,000 | 12,900 | 12,300 |
| JM Residential Sweden | 11,700 | 12,100 | 11,900 |
| JM Norway | 6,200 | 6,900 | 6,400 |
| JM Finland | 6,700 | 6,900 | 6,900 |
| JM Property Development (project properties) | 1,700 | 1,700 | 1,600 |
| Total | 38,300 | 40,500 | 39,100 |
| Including those carried in the balance sheet (development properties) | |||
| JM Residential Stockholm | 7,300 | 6,400 | 6,700 |
| JM Residential Sweden | 8,000 | 8,500 | 8,000 |
| JM Norway | 3,400 | 3,200 | 3,900 |
| JM Finland | 3,400 | 3,500 | 3,500 |
| JM Property Development (project properties) | 600 | 800 | 600 |
| Total | 22,700 | 22,400 | 22,700 |
Stockholm, Tuesday, April 23, 2024 JM AB (publ)
Johan Skoglund President and CEO
This interim report has not been reviewed by the Company's auditors.
Group quarterly overview
| ACCORDING TO SEGMENT REPORTING, SEK M | 2024 | 2023 | |||
|---|---|---|---|---|---|
| INCOME STATEMENT | Q 1 | Q 4 | Q3 | Q2 | Q 1 |
| Revenue | 3,034 | 3,407 | 2,846 | 3,636 | 3,962 |
| Production and operating costs | –2,653 | –3,025 | –2,489 | –3,073 | −3,290 |
| Gross profit | 381 | 382 | 357 | 562 | 673 |
| Selling and administrative expenses | –222 | –227 | –203 | –305 | −252 |
| Gains/losses on the sale of property, etc. | 1 | –245 | –8 | 1 | −4 |
| Operating profit | 160 | –90 | 146 | 258 | 417 |
| Financial income and expenses | –32 | –23 | –27 | –27 | −23 |
| Profit before tax | 128 | –113 | 120 | 232 | 394 |
| Taxes | –49 | –23 | –43 | –49 | −83 |
| Profit for the period | 79 | –137 | 76 | 182 | 311 |
| CONSOLIDATED BALANCE SHEET | 03/31 | 12/31 | 9/30 | 6/30 | 03/31 |
| ASSETS | |||||
| Non-current assets | 377 | 351 | 344 | 335 | 339 |
| Project properties | 1,138 | 1,030 | 1,027 | 960 | 800 |
| Development properties | 8,529 | 8,504 | 9,013 | 8,746 | 8,239 |
| Participations in tenant-owners associations, etc. | 566 | 803 | 751 | 503 | 363 |
| Current receivables | 5,172 | 4,541 | 4,872 | 5,126 | 4,856 |
| Cash and cash equivalents | 566 | 1,582 | 742 | 699 | 2,577 |
| Total current assets | 15,970 | 16,461 | 16,406 | 16,034 | 16,835 |
| Total assets | 16,347 | 16,812 | 16,750 | 16,369 | 17,175 |
| EQUITY AND LIABILITIES | |||||
| Equity | 8,491 | 8,332 | 8,806 | 8,687 | 9,314 |
| Non-current interest-bearing liabilities | 280 | 397 | 188 | 186 | 257 |
| Other non-current liabilities | 364 | 364 | 413 | 413 | 413 |
| Non-current provisions | 2,398 | 2,559 | 2,631 | 2,671 | 2,591 |
| Total non-current liabilities | 3,042 | 3,319 | 3,232 | 3,270 | 3,261 |
| Current interest-bearing liabilities | 1,499 | 1,526 | 852 | 711 | 461 |
| Other current liabilities | 3,206 | 3,522 | 3,745 | 3,577 | 4,013 |
| Current provisions | 109 | 113 | 115 | 124 | 126 |
| Total current liabilities | 4,814 | 5,161 | 4,712 | 4,412 | 4,600 |
| Total equity and liabilities | 16,347 | 16,812 | 16,750 | 16,369 | 17,175 |
| CASH FLOW STATEMENT | Q 1 | Q 4 | Q 3 | Q 2 | Q 1 |
| From operating activities From investing activities |
–949 –11 |
404 –2 |
–101 – |
–1,143 –1 |
792 1 |
| From financing activities | –67 | 466 | 138 | –737 | −39 |
| Total cash flow for the period Cash and cash equivalents at end of the period |
–1,027 566 |
869 1,582 |
37 742 |
–1,881 699 |
753 2,577 |
| INTEREST-BEARING NET LIABILITIES/RECEIVABLES | Q 1 | Q 4 | Q 3 | Q 2 | Q 1 |
| Interest-bearing net liabilities(+)/−receivables(−) at | |||||
| beginning of period | 1,877 | 1,587 | 1,498 | –549 | 334 |
| Change in interest-bearing net liabilities/receivables | 854 | 290 | 89 | 2,047 | −882 |
| Interest-bearing net liabilities(+)/receivables(−) at end | |||||
| of period | 2,731 | 1,877 | 1,587 | 1,498 | −549 |
| DEVELOPMENT PROPERTIES | Q 1 | Q 4 | Q 3 | Q 2 | Q 1 |
| Carrying amount at beginning of the period | 8,504 | 9,013 | 8,746 | 8,239 | 8,465 |
| Acquisitions | 157 | 440 | 478 | 625 | 86 |
| Transferred to production | –177 | –268 | –161 | –171 | −229 |
| Other | 45 | –681 | –49 | 53 | −82 |
| Carrying amount at end of the period | 8,529 | 8,504 | 9,013 | 8,746 | 8,239 |
| KEY RATIOS | Q 1 | Q 4 | Q 3 | Q 2 | Q 1 |
| Operating margin, % | 5.3 | –2.6 | 5.1 | 7.1 | 10.5 |
| Debt/equity ratio, multiple | 0.3 | 0.2 | 0.2 | 0.2 | – |
| Equity/assets ratio, % | 52 | 50 | 53 | 54 | 54 |
| Earnings per share, SEK | 1.20 | –2.10 | 1.20 | 2.70 | 4.80 |
| Number of available building rights | 38,300 | 39,100 | 39,900 | 40,400 | 40,500 |
| Number of residential units sold | 480 | 773 | 286 | 363 | 479 |
| Number of housing starts | 145 | 740 | 201 | 454 | 214 |
| Number of residential units in current production | 5,068 | 6,033 | 6,188 | 6,657 | 6,996 |
Business Segment Quarterly Overview
| ACCORDING TO SEGMENT REPORTING, SEK M | 2024 | 2023 | |||
|---|---|---|---|---|---|
| JM RESIDENTIAL STOCKHOLM | Q 1 | Q 4 | Q 3 | Q 2 | Q 1 |
| Revenue | 882 | 1,022 | 955 | 1,176 | 1,095 |
| Operating profit | –47 | –118 | 24 | 90 | 116 |
| Operating margin, % | –5.3 | –11.5 | 2.5 | 7.6 | 10.6 |
| Average operating capital | 5,140 | 5,021 | 4,924 | 4,791 | 4,552 |
| Return on operating capital, %1) | –1.0 | 2.2 | 8.5 | 11.6 | 14.2 |
| Operating cash flow | –312 | 54 | 144 | –806 | 76 |
| Carrying amount, development properties | 4,160 | 4,097 | 4,443 | 4,619 | 4,034 |
| Number of available building rights | 12,000 | 12,300 | 12,500 | 12,900 | 12,900 |
| Number of residential units sold | 168 | 124 | 74 | 66 | 51 |
| Number of housing starts | 145 | 98 | 133 | – | – |
| Number of residential units in current production | 1,680 | 1,906 | 2,174 | 2,299 | 2,396 |
| JM RESIDENTIAL SWEDEN | Q 1 | Q 4 | Q 3 | Q 2 | Q 1 |
| Revenue | 600 | 726 | 639 | 982 | 1,129 |
| Operating profit | 17 | –71 | 32 | 51 | 126 |
| Operating margin, % | 2.9 | –9.7 | 5.0 | 5.2 | 11.2 |
| Average operating capital | 2,550 | 2,431 | 2,298 | 2,057 | 1,830 |
| Return on operating capital, %1) | 1.2 | 5.7 | 16.5 | 24.4 | 34.7 |
| Operating cash flow | –135 | –110 | –94 | –85 | −135 |
| Carrying amount, development properties | 1,917 | 1,927 | 2,091 | 2,092 | 2,150 |
| Number of available building rights | 11,700 | 11,900 | 12,100 | 12,100 | 12,100 |
| Number of residential units sold | 172 | 142 | 139 | 140 | 113 |
| Number of housing starts | – | 145 | – | 159 | 139 |
| Number of residential units in current production | 1,060 | 1,477 | 1,642 | 1,922 | 1,958 |
| JM NORWAY | Q 1 | Q 4 | Q 3 | Q 2 | Q 1 |
| Revenue | 690 | 751 | 561 | 645 | 632 |
| Operating profit | 70 | 34 | 30 | 43 | 42 |
| Operating margin, % | 10.1 | 4.5 | 5.3 | 6.7 | 6.7 |
| Average operating capital | 2,140 | 2,063 | 2,070 | 2,047 | 2,110 |
| Return on operating capital, %1) | 8.2 | 7.2 | 8.0 | 9.3 | 9.8 |
| Operating cash flow | –246 | 46 | –105 | 109 | −12 |
| Carrying amount, development properties | 1,231 | 1,328 | 1,351 | 888 | 957 |
| Carrying amount, project properties | – | – | – | 15 | 17 |
| Number of available building rights | 6,200 | 6,400 | 6,500 | 6,700 | 6,900 |
| Number of residential units sold | 62 | 196 | 71 | 144 | 77 |
| Number of housing starts | – | 156 | 68 | 140 | 41 |
| Number of residential units in current production | 852 | 1,071 | 1,006 | 1,001 | 1,105 |
| JM FINLAND | Q 1 | Q 4 | Q 3 | Q 2 | Q 1 |
| Revenue | 388 | 437 | 326 | 389 | 439 |
| Operating profit | 26 | 46 | 27 | 29 | 38 |
| Operating margin, % | 6.7 | 10.5 | 8.4 | 7.5 | 8.6 |
| Average operating capital | 1,769 | 1,718 | 1,682 | 1,681 | 1,644 |
| Return on operating capital, %1) | 7.3 | 8.1 | 8.4 | 9.0 | 9.9 |
| Operating cash flow | 85 | –61 | –45 | 79 | −29 |
| Carrying amount, development properties | 1,181 | 1,115 | 1,068 | 1,086 | 1,040 |
| Number of available building rights | 6,700 | 6,900 | 7,200 | 7,100 | 6,900 |
| Number of residential units sold | 78 | 311 | 2 | 13 | 20 |
| Number of housing starts | – | 341 | – | – | 34 |
| Number of residential units in current production | 814 | 917 | 704 | 773 | 1,030 |
| JM PROPERTY DEVELOPMENT | Q 1 | Q 4 | Q 3 | Q 2 | Q 1 |
| Revenue | 367 | 336 | 247 | 310 | 566 |
| Operating profit | 104 | 46 | 39 | 60 | 104 |
| Operating margin, % | 28.4 | 13.7 | 15.7 | 19.4 | 18.3 |
| Average operating capital | 1,294 | 1,372 | 1,394 | 1,399 | 1,355 |
| Return on operating capital, %1) | 19.2 | 18.1 | 37.9 | 34.8 | 29.9 |
| Operating cash flow | –84 | 9 | –9 | –95 | 919 |
| Carrying amount, development properties | – | – | – | – | – |
| Carrying amount, project properties | 1,138 | 1,030 | 1,027 | 944 | 783 |
| Number of available building rights | 1,700 | 1,600 | 1,600 | 1,600 | 1,700 |
| Number of residential units sold | – | – | – | – | 218 |
| Number of housing starts | – | – | – | 155 | – |
| Number of residential units in current production | 662 | 662 | 662 | 662 | 507 |
1) Calculated on 12-month rolling profits and average capital.
JM in brief
Business concept
With people in focus and through constant development, we create homes and sustainable living environments.
Vision
We are laying the foundations for a better life.
Business
JM is one of the leading developers of housing and residential areas in the Nordic region.
Operations focus on new production of homes in attractive locations, with the main focus on expanding metropolitan areas and university towns in Sweden, Norway and Finland. We are also involved in project development of commercial premises and contract work, primarily in the Greater Stockholm area.
JM should promote long-term sustainability work in all its operations. Annual sales total approximately SEK 13 billion, and the company has approximately 2,100 employees. JM AB is a public limited company listed on NASDAQ Stockholm, Large Cap segment.
Financial targets, benchmarks for capital structure and dividend policy
The operating margin should amount to on average 12 percent, including gains/losses from property sales.
Return on equity should be 25 percent on average over time. Long-term growth should amount to 4 percent a year on average for the number of housing starts, where the baseline is an annual rate of 3,800 housing starts.
Benchmark for capital structure where the visible equity/assets ratio should amount to at least 35 percent over a business cycle.
Dividend policy where the average dividend should be 50 percent of the Group's profit after tax over a business cycle.
JM's financial targets, benchmarks for capital structure and dividend policy are based on segment reporting.
Disclosures
This information is information that JM AB 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 below, at 8:00 AM CEST on April 23, 2024.
For more information please contact:
Tobias Bjurling, CFO, Head of IR Email: [email protected], tel. (swbrd): +46 (0) 8 782 87 00
Financial calendar
May 22, 2024 Capital Markets Day July 10, 2024 Interim Report January–June October 22, 2024 Interim Report January–September
Press Releases, first quarter 2024
| January 30 | JM Year-end Report January–December 2023 |
|---|---|
| January 30 | Change in JM Group's business segments |
| February 15 | Motion to 2024 Annual General Meeting in JM AB (publ) regarding Chair and Board Members |
| February 23 | JM's subsidiary AB Borätt acquiring building rights for residential development in Sollentuna |
| March 15 | Notice of JM AB's Annual General Meeting on April 18, 2024 |
| March 25 | JM Annual and Sustainability Report 2023 |
JM's annual reports, interim reports and other financial information are available at jm.se/investors
Text: JM. Photo: Sandra Birgersdotter Ek.
JM AB (publ)
Mailing address SE-169 82 Stockholm Street address Gustav III:s boulevard 64, Solna, Sweden Telephone +46 8 782 87 00 Fax +46 8 782 86 00 Comp.Reg. No. 556045-2103 Website jm.se/en