Annual Report • Feb 17, 2023
Annual Report
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| Oct-Dec | Jan-Dec | |||
|---|---|---|---|---|
| MSEK | 2022 | 2021 | 2022 | 2021 |
| Property value | 4,623 | 2,607 | 4,623 | 2,607 |
| Rental income | 80 | 33 | 257 | 93 |
| Net operating income | 60 | 21 | 186 | 65 |
| Profit from property management | 21 | 10 | 73 | 18 |
| Result of the period for continuing operations | -12 | 222 | 323 | 317 |
| Earnings per ordinary share A and B, SEK | -0.1 | 2.4 | 2.9 | 3.7 |
| Occupancy rate, economic, % | 98.1 | 95.2 | 98.1 | 95.2 |
| Equity ratio, % | 38.7 | 36.0 | 38.7 | 36.0 |
| Loan to value (LTV), % | 55.2 | 55.9 | 55.2 | 55.9 |
| NAV per ordinary share, SEK | 16.9 | 11.8 | 16.9 | 11.8 |
Outcome and comparative figures in Logistea's year-end report for 2022 refer to the company's real estate operations. Financial results for the company's fashion business, which was distributed from the Group in Q4 2021, are broken out in the income statement with explanations in Note 4. For definitions of key figures, see page 22.
"During the fourth quarter, we completed transactions and made important actions to ensure a positive development for Logistea also in 2023."
The end of 2022 was just as intense as we had hoped for. During the fourth quarter, we completed transactions and made important actions to ensure a positive development for Logistea also in 2023. We have extended the fixed interest rate period and increased the portfolio during the quarter by SEK 275 million. In December, we also acquired two properties in Partille from Nordika Fastigheter, where we receive SEK 105 million in cash equivalents at the same time as we get a new institutional major shareholder in Logistea.
Rental income for the year 2022 increased to SEK 257 million (93) and profit from property management to SEK 73 million (18). Profit before tax amounted to SEK 420 million (396). Net asset value continues to increase and amounted to SEK 16.9 per share at the end of the quarter. The development in net asset value and profit from property management per share corresponded to 43 and 207 percent respectively, which significantly exceeds the financial targets of 12 and 10 percent, respectively.
Unrealized changes in the value of properties for the year amounted to SEK 339 million. Given the changed market conditions, we chose to let external valuers value all our cash flow-generating properties in the fourth quarter. It is clear that the return requirements have been adjusted upwards at the same time as the indexation of rents has had a positive impact on the calculation. In our case, this resulted in change in value in the fourth quarter of SEK -12 million.
Demand for warehouses, logistics and light industrial premises remains good. The trend where companies move production home to Europe and Sweden persists. The results of uncertain deliveries and the problems it has brought have been made clear in recent years, which is why it is a natural step for many companies to have production closer to their home market and customers.
In 2022, we added 27 properties and increased our property value from SEK 2.6 billion to SEK 4.6 billion. In addition, we have completed two projects with state-of-the-art tenant-adapted buildings in Vaggeryd Logistikpark and Viared in Borås. Both buildings are certified according to BREEAM In-Use (Very Good). The detailed planning process in the project where we signed a letter of intent with the battery cell manufacturer Freyr Battery is progressing.
In December, a transaction was signed with Nordika, where we in January 2023 acquired two attractive properties in Partille. As part of the transaction, shares worth SEK 235 million will be issued to Nordika in an offset issue, making Nordika and their institutional investors our third largest shareholder. The transaction was completed on 31 January 2023.
In the anxious times we find ourselves, it feels safe that Logistea has solid tenants and long-term leases. The average term of Logistea's leases at year-end was 7.8 years. The leases are also approximately 80 percent triple net like agreements where the tenant accounts for the absolute majority of operating and maintenance costs. In addition, 98 percent of our leases are indexed. All in all, this creates stability and predictability in our revenues, which is in line with our business concept where we reward safe cash flows. Our cash flow-generating properties has a property yield of 6.2 percent.
At a time of increasing interest rates, we are pleased that we in December entered into interest derivatives agreements that extended the company's fixed interest rate from the previous 0.7 years to 2.1 years. The nominal amount that was secured sums up to SEK 800 million. As a result, the share of interest secured debt has increased from 20 percent to just over 50 percent of total borrowing, which significantly reduces Logistea's interest rate risk. The restructured derivatives portfolio gives Logistea better protection against rising interest rates, a longer fixed interest rate period and lower average interest rates given current market rates and the market's current expected interest rate curve. In addition, the cumulative impact of the actions reduces the average cost of financing, compared to the December interest rate level, by 0.2 percentage points. More information, see page 13, Financing.
Our financing consists of 79 percent of bank loans, 19 percent of a green unsecured bond issued in Swedish kronor and a smaller part of promissory notes. The bond loan matures in Q4 2024 and the average tied-up capital amounts to 2.7 years. In January 2023, the company repurchased SEK 23.8 million out of a total nominal amount of SEK 500 million.
We are putting an eventful 2022 to the record and look forward to continuing to deliver in 2023.
Niklas Zuckerman Chief Executive Officer
| MSEK | 30/09/2021 | 31/12/2021 | 31/03/2022 | 30/06/2022 | 30/09/2022 | 31/12/2022 | 17/02/2023 |
|---|---|---|---|---|---|---|---|
| Income investment properties | 87 | 155 | 179 | 247 | 254 | 298 | 317 |
| Income project properties | 34 | 34 | 20 | 24 | 26 | 15 | 15 |
| Non recoverable property costs | -22 | -31 | -33 | -34 | -34 | -35 | -36 |
| Net operating income | 99 | 158 | 166 | 237 | 246 | 278 | 296 |
| Central administration | -15 | -20 | -26 | -30 | -32 | -39 | -39 |
| Net finance costs | -23 | -53 | -55 | -84 | -93 | -117 | -123 |
| Profit before tax | 61 | 85 | 85 | 123 | 121 | 122 | 134 |
For a more detailed description of earning capacity, see page 22.
| Oct-Dec | Jan-Dec | |||
|---|---|---|---|---|
| MSEK Not |
2022 | 2021 | 2022 | 2021 |
| Rental income | 80 | 33 | 257 | 93 |
| Property expenses | -20 | -12 | -71 | -28 |
| Net operating income 2 |
60 | 21 | 186 | 65 |
| Central administration | -11 | -1 | -38 | -24 |
| Net financial income 3 |
-28 | -10 | -75 | -23 |
| Profit from property management | 21 | 10 | 73 | 18 |
| Changes in value, properties | -12 | 262 | 339 | 378 |
| Changes in value, derivatives | -3 | - | 8 | - |
| Profit before tax | 6 | 272 | 420 | 396 |
| Actual tax | 1 | 2 | -3 | -1 |
| Deferred tax | -19 | -52 | -94 | -78 |
| Result for the period for continuing operations | -12 | 222 | 323 | 317 |
| Profit for the period from distributed operations 4 |
-2 | -3 | -5 | -24 |
| Net profit for the period | -14 | 219 | 318 | 293 |
| Net profit for the period attributable to: | ||||
| Parent company's shareholders, continuing operations | -12 | 222 | 323 | 317 |
| Parent company's shareholders, distributed operations | -2 | 1 | -5 | -16 |
| Holding of non-controlling interests | - | -4 | - | -8 |
| Earnings per share¹⁾ | ||||
| Earnings per share before dilution, calculated on result for the period for continuing operations attributable parent company's shareholders, SEK |
-0.10 | 2.40 | 2.86 | 3.73 |
| Earnings per share before dilution, calculated on result for the period attributable to parent company's shareholders, SEK |
-0.11 | 2.36 | 2.82 | 3.49 |
| Earnings per share after dilution, calculated on result for the period attributable to parent company's shareholders, SEK |
-0.10 | 2.40 | 2.82 | 3.73 |
| Earnings per share after dilution, calculated on result for the period attributable to parent company's shareholders, SEK |
-0.11 | 2.36 | 2.78 | 3.49 |
¹Earnings per ordinary share are adjusted retroactively for the bonus issue and reverse split executed in November 2021. Diluted earnings per share adjust the key ratio by the number of shares that will be issued in connection with the transaction with Nordika in Q1 2023.
| Oct-Dec | Jan-Dec | |||
|---|---|---|---|---|
| MSEK Not |
2022 | 2021 | 2022 | 2021 |
| Net profit for the period | -14 | 219 | 318 | 293 |
| Items which can be recognized as profit for the period | ||||
| Translation difference | 2 | -4 | 1 | -4 |
| Comprehensive income for the period | -12 | 215 | 319 | 289 |
| Other comprehensive income for the period attributable to: | ||||
| Parent company's shareholders, continuing operations | -12 | 222 | 323 | 317 |
| Parent company's shareholders, distributed operations | 0 | -3 | -4 | -20 |
| Holding of non-controlling interests | - | -4 | - | -8 |
For the fourth quarter, total revenue increased to SEK 80 million (33) and to a total of SEK 257 million (93) for the full year. The increase is mainly explained by increased property holdings, both from acquisitions and from completed projects.
The economic occupancy rate on the balance sheet date was 98.1 percent (95.2) and the contracted rental value of the investment properties amounted to SEK 298 million (154), an increase of 94 percent.
Property costs for the year amounted to SEK 71 million (28). The surplus ratio was 72 percent (70), and the adjusted surplus ratio was 86 percent (80). Most of the costs for electricity and heating for the year has been charged on the tenants in accordance with the lease agreements. The sum also includes costs for property maintenance and other operations and maintenance.
Completed property acquisitions have contributed to an increase in net operating income of 186 percent to SEK 186 million (65) for the year compared with the previous year. Net operating income for the quarter amounted to SEK 60 million (21). A specification of the net operating income can be found in Note 2.
Costs for central administration, which refers to costs for group management and group-wide functions, amounted to SEK 38 million (24) for the year. The cost for the fourth quarter ended at SEK 11 million (1).
As a result of an increased debt portfolio and a higher market interest rate level, net financial items amounted to SEK 75 million (23) for the financial year 2022. At the year-end, the average interest rate was 4.8 percent (3.1). As a result of property acquisitions, interest-bearing net debt increased to SEK 2,550 million (1,468). The loan-to-value ratio was 55.2 percent (55.9). The interest coverage ratio increased during the year from 1.8 to 2.2 times. See further information about Logistea´s interest-bearing liabilities in the Financing section on page 13.
Profit from property management for the year amounted to SEK 73 million (18), of which SEK 21 million (10) is attributable to the fourth quarter. The increase is mainly due to increased income from acquisitions and completed projects.
The deferred tax costs for the year amounted to SEK -94 million (-78). The cost for the quarter amounted to SEK -19 million (-52) and relates mainly to temporary differences attributable to investment properties and untaxed reserves.
Profit from real estate operations amounted to SEK 323 million (317) for the full year, affected by an increased profit from property management, unrealized changes in the value of the property portfolio of SEK 339 million (378) and deferred tax costs of SEK -94 million (-78). At the end of the period, the unrealized changes of the value of derivatives were SEK -3 million (0). More information about unrealized changes in the value of real estate can be found in Note 6.
| MSEK | Not | 31/12/2022 | 31/12/2021 |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Intangible assets | 1 | 1 | |
| Investment properties | 6 | 4,623 | 2,607 |
| Right-of-use assets | 12 | 2 | |
| Other tangible fixed assets | 5 | 0 | |
| Other long-term receivables | 1 | 1 | |
| Derivatives | 10 | - | |
| Total non-current assets | 4,652 | 2,611 | |
| Current assets | |||
| Current receivables | 111 | 82 | |
| Cash and bank balances | 52 | 218 | |
| Total current assets | 163 | 300 | |
| TOTAL ASSETS | 4,815 | 2,911 | |
| EQUITY AND LIABILITIES | |||
| Equity attributable to parent company's shareholders | 1,864 | 1,049 | |
| Total equity | 1,864 | 1,049 | |
| Non-current liabilities | |||
| Interest bearing debt | 2,505 | 1,514 | |
| Leasing liabilities | 10 | - | |
| Deferred tax | 185 | 90 | |
| Total non-current liabilities | 2,700 | 1,604 | |
| Current liabilities | |||
| Interest bearing debt | 100 | 172 | |
| Leasing liabilities | 2 | 2 | |
| Other liabilities | 149 | 84 | |
| Total current liabilities | 251 | 258 | |
| TOTAL EQUITY AND LIABILITIES | 4,815 | 2,911 |
| MSEK | 31/12/2022 | 31/12/2021 |
|---|---|---|
| Equity at beginning of period | 1,049 | 470 |
| Comprehensive income for the period | 319 | 289 |
| Emissions, net after issuance costs | 494 | 317 |
| Tax effect issuance costs | 2 | - |
| Non-cash issue acquisition of MBRS Group | - | 142 |
| Dividend of holdings in MBRS Group | - | -177 |
| Staff option program | 0 | 8 |
| Equity at end of period | 1,864 | 1,049 |
| Oct-Dec | Jan-Dec | ||||
|---|---|---|---|---|---|
| SEK | Not | 2022 | 2021 | 2022 | 2021 |
| Cash flow from operations | |||||
| Net operating income continuing operations | 60 | 21 | 186 | 65 | |
| Central administration continuing operations | -11 | -1 | -38 | -24 | |
| Operating income from distributed operations | 4,5 | -2 | -3 | -5 | -24 |
| Adjustments for non-cash items | 1 | 1 | 1 | 11 | |
| Interest received | 3 | - | 4 | 0 | |
| Interest paid | -27 | -7 | -67 | -17 | |
| Tax paid | 1 | 3 | -6 | -1 | |
| Cash flow before changes in working capital | 25 | 14 | 75 | 10 | |
| Cash flow from changes in working capital | |||||
| Increase (-)/decrease (+) of commodities | - | - | - | -22 | |
| Increase (-)/decrease (+) of current assets | -18 | -12 | -7 | -36 | |
| Increase (+)/decrease (-) of current liabilities | 29 | 90 | 8 | 43 | |
| Cash flow from operations | 36 | 92 | 76 | -5 | |
| Cash flow from investing activities | |||||
| Investments in current properties | 36 | -88 | -196 | -161 | |
| Acquisition of assets via subsidiaries | -265 | -269 | -484 | -331 | |
| Divestment of assets via subsidiaries | 4 | - | 4 | - | |
| Other intangible and tangible assets, net | -4 | -8 | -6 | -1 | |
| Cash flow from investing activities | -229 | -365 | -682 | -493 | |
| Cash flow from financing activities | |||||
| Emissions, net after issuance costs | 0 | -2 | 338 | 38 | |
| Staff option program | - | 8 | 0 | 8 | |
| New loans | 242 | 609 | 1,072 | 1,257 | |
| Repayment of loans | -127 | -224 | -970 | -642 | |
| Repayment of leasing debt | - | 2 | - | -2 | |
| Cash flow from financing activities | 115 | 393 | 440 | 658 | |
| Increase/decrease of cash and cash equivalents | |||||
| Cash flow for the period | -78 | 120 | -166 | 160 | |
| Cash and cash equivalents at beginning of period | 130 | 98 | 218 | 58 | |
| Cash and cash equivalents at end of period | 52 | 218 | 52 | 218 |
The cash flow statement is prepared and adjusted in accordance with IAS 7, which means that only the net purchase price for the shares in acquired companies, less acquired cash and cash equivalents, is recognized under the acquisition of real estate. Amortized loans include the Group's amortization of existing debt and refinancings of acquired debts.
The Group's cash and cash equivalents decreased during the quarter as a result of acquisitions. In connection with the transaction with Nordika in January 2023, Logistea 's cash balance increased by SEK 105 million, which strengthened cash and cash equivalents by the same amount in the first quarter of 2023. In addition to cash, the Group has unutilized credit facilities of approximately SEK 30 million that can be called on if necessary.
During the year, Logistea acquired a total of 27 properties with annual rental income of approximately SEK 122 million, net operating income of approximately SEK 116 million at an underlying property value of approximately SEK 1,494 million.
As of December 31, 2022, Logistea owned 68 properties (41) in 40 locations (19) in Sweden. Total rental income during the fourth quarter amounted to SEK 80 million (33) and for the last 12 months to SEK 257 million. Total leasable area amounted to 540,870 square meters (322,342), excluding ongoing and planned new constructions and extensions. The economic occupancy rate for investment properties at the end of the period was 98.1 percent (95.1).
The total carrying value of the property portfolio on the balance sheet date was SEK 4,623 million (2,607). Future investments in new constructions and extensions, that are planned to be completed in 2023 and 2024, amount to SEK 93 million.
For 2022, the unrealized change in values amounted to SEK 339 million (378). Of the total change in value for the year, SEK 321 million is based on rising net operating income mainly as a result of rent increases due to CPI adjustment, SEK -76 million is due to changed assumptions about yield requirements and SEK 38 million related to project profit. Of the total change in value for the year, deferred tax rebate on acquisitions accounts for SEK 56 million.
Changes in value in the fourth quarter amounted to a total of SEK -12 million (262). Of the change in value, SEK 259 million is attributed to increased net operating income as a result of mainly rent increases due to CPI adjustment, SEK -316 million is due to upwardly adjusted yield requirements and SEK 34 million is due to completed projects. Of the total change in value for the quarter, deferred tax rebate on acquisitions accounts for SEK 11 million.
The yield of Logistea's cash flow-generating properties at the end of the period was 6.2 percent (5.9) and the average valuation yield was 6.2 percent. For more information, see Note 6.
As of the end of the fourth quarter, 100 percent of the cash flowgenerating properties, corresponding to 94 percent of the total portfolio, have been externally valued by authorized and independent valuation agencies. Generally, cash flow calculations are used in the value assessments in which net operating income, investments and residual value are calculated at present value. The calculation period is adjusted based on the remaining term of each property's existing lease. More information about valuations can be found in Note 10 in Logistea's Annual and Sustainability Report 2021.
Logistea's vision is to be the natural long-term partner for companies that demand sustainable and modern premises for warehousing, logistics and light industry by offering sustainable and efficient premises in good business locations modified to the tenant's needs. Together with the tenants, the properties are developed to benefit both of the parties.
Logistea's acquisition strategy focuses and prioritizes properties in good locations with financially stable tenants and long-term leases. As of December 31, 2022, the average remaining contract length for Logistea's leases were 7.8 years (6.2). Logistea prioritizes a welldiversified customer base in terms of tenants' business areas and industries, which is estimated to provide a reduced risk of rental losses and vacancies and produces a stable cash flow over time.
Logistea mainly signs so-called triple-net leases with full KPI adjustments, where the tenant in addition to the contracted rent also pays the operational and maintenance costs. Examples of these costs are heating, electricity, water, property tax, property maintenance and maintenance of the properties. This means that Logistea has a limited risk of increases in these types of costs.
| Region | Lettable area, sqm |
Property value, MSEK |
Rental value, MSEK |
NOI*, MSEK |
Building rights, sqm |
|---|---|---|---|---|---|
| West | 306,269 | 2,822 | 188 | 169 | 70,500 |
| Mid | 98,182 | 512 | 45 | 34 | 50,000 |
| South | 96,697 | 711 | 47 | 45 | 13,000 |
| East | 22,599 | 166 | 12 | 10 | 2,000 |
| North | 17,123 | 79 | 6 | 6 | - |
| Total | 540,870 | 4,290 | 298 | 264 | 135,500 |
| Project properties | 14,520 | 333 | 15 | 14 | 180,000 |
| Total | 555,390 | 4,623 | 313 | 278 | 315,500 |
*Refers to net operating income from earning capacity.
Svenljunga/Lockryd (480,000 sqm building right) and Ödeshög (50,000 sqm building right), where Logistea has a unilateral option to acquire land, have not been included in the table.
During the fourth quarter, Logistea acquired a property in Alingsås corresponding to 19,100 square meters of lettable area and approximately 5,000 square meters of building rights, at a total property value of SEK 275 million. During the year, a total of 27 properties with a total lettable area of 218,528 square meters were acquired.
West Central South East North
Logistea's property portfolio as of 31 December regionalized.
In order to retain satisfied and long-term tenants, Logistea works continuously to develop, refine, modernize and adapt its properties based on the tenant's needs. Together with the tenants, Logistea develops new properties, further develops and builds to existing properties and drives further development of the environment closest to the properties. Through a good collaboration, Logistea can grow together with the tenants.
In Vaggeryd Logistikpark, the first phase regarding a modern logistics property of approximately 13,500 square meters, with a good signage location at the E4, has been completed and the tenants moved in during the second quarter of 2022.
During the third quarter, the e-commerce company Cellbes moved into its newly built fully automated logistics premises of 8,700 square meters in Viared, Borås. The newly built premises were built adjacent to Cellbes' existing logistics property. After the new construction, the property has a total lettable area of approximately 21,400 square meters and will serve as Cellbes' central warehouse.
In April, the property Vivsta 13:92 in Timrå municipality was acquired. The property comprises 14,500 square meters of land area on which a new warehouse and logistics building of 5,000 square meters will be built, with an estimated handover at the end of the first quarter of 2023. The sole tenant is Nordic Netstores, which operates the websites Jakt.se, Hund.se and Fiske.se. The building will be certified according to BREEAM In-Use Very Good or Excellent.
Vaggeryd Logistikpark is an extensive development area located south of Jönköping. Apart from an excellent logistics location, there is a railway connection on the premises. The logistics park comprises a total land area of 380,000 square meters, of which approximately 140,000 square meters of developable building rights remain after the completed first phase of construction (see earlier subsection on completed new construction).
In 2021, Logistea, together with Hansson Holding AB, signed a letter of intent with an international battery manufacturer regarding a lease agreement for 380,000 square meters of newly produced premises. In March 2022, a letter of intent and land allocation agreement for one million square meters of land area was signed with Svenljunga municipality. During the autumn, work was underway to plan the land to be prepared in detail, in parallel with step two of the archaeological investigation. The letter of intent regarding the lease is conditional on accomplishing a completed detailed plan.
The Båramo terminal, a dry port linked by rail with the Port of Gothenburg, is one of the largest inland nodes in the shuttle system by rail to and from the Port of Gothenburg. Here, Logistea plans the construction of a modern purpose-built warehouse and logistics buildings of approximately 60,000 square meters on 100,000 square meters of land, of which 80,000 square meters are held via a unilateral option. Båramo intermodal terminal is part of the European rail corridor ScandMed established by the EU.
Information about project properties is based on assessments of the size, focus and scope of the projects. Furthermore, the information is based on assessments of future project costs and rental value. The assessments and assumptions should not be seen as a forecast. Assessments and assumptions involve uncertainties regarding the implementation, design and size of the projects, schedules, project costs and future rental value. The information about project properties is regularly reviewed and assessments and assumptions are adjusted as a result of ongoing projects being completed or added and conditions changing. Svenljunga/Lockryd and Fåglabäck are not included in the table.
The interest of investing in properties in the warehousing, logistics and light industry segments remains strong driven by high underlying demand for space, a strong rental market and good visibility for growth in net operating income given so-called triple net leases, i.e. leases where the tenant pays maintenance, property tax and insurance. The segment has been driven by strong demand from tenants who, among other things, moved production from other countries to Sweden, increased warehousing locally and growing e-commerce. At the same time many investors, both national, international and not least capital-rich institutions, have wanted to increase their exposure to the segment. The recent higher interest costs have, on the other hand, dampened demand in the prime segment, with rising yield levels as a result. However, the higher return requirements in the industrial segment have continued to attract investors, a trend that can also be seen in the major European markets.
JLL estimates that construction was started on approximately 990,000 sqm of logistics space (>5,000 sqm) in 2022. This is less than 1,475,000 sqm in the record year 2021 but remains at a high level when compared to the average since 2010, which amounts to approximately 670,000 sqm per year. Construction is estimated to have slowed down due to the fact that planning processes have taken longer, as well as rising construction costs and long delivery times. Leasing is also at a lower level than before, which balances the lower number of constructions starts, although continued strong demand speaks for continued high new production in 2023 and 2024 at levels that exceed the historical average.
JLL estimates that approximately 1,500,000 sqm of logistics space (>5,000 sqm) was completed in 2022, that an additional 1,200,000 sqm will be completed in 2023 and 913,000 sqm in 2024, based on ongoing construction starts. The mid-region showed the largest increase in completed logistics space in 2022, an increase to
Yield prime logistics
Logistics/industrial transaction volume on a full-year basis, BSEK
approximately 720,000 sqm from 350,000 sqm. This is a level that is likely to moderate somewhat in 2023 and 2024 due to fewer construction starts in 2022. The Western region also showed an increase where just over 500,000 sqm were completed in 2022, which is an increase compared to 226,000 sqm in 2021. Also in the Western region, slightly fewer square meters are expected to be completed in 2023 and 2024.
JLL estimates that the total transaction market for industry/ logistics represented a value of approximately SEK 38 billion in 2022, which is in line with 2021 and is significantly stronger than the total transaction market, whose value decreased by approximately 50 percent in 2022. Square meter prices for transactions have increased to a new record level of approximately SEK 18,000 per sqm, which is partly explained by an increased proportion of transactions in the Middle region, where prices are historically slightly higher.
JLL estimates that yield requirements have increased, mainly in the prime segment, since the end of the second quarter of 2022, and continued in the fourth quarter of 2022, driven by growing financing costs. However, indexation of rents will partially compensate for rising return requirements based on the index of 10.9% for commercial real estate for 2023. A weaker economic outlook has balanced the industrial segment to some extent, although the increase in dividend yield requirements is lower compared to the prime segment. However, the higher yield requirements in the industrial segment attract investors in relation to the low-yield prime segment, a trend that can also be seen in the major European markets. JLL sees continued risk for the prime segment in 2023 given high financing costs and increased supply in the transaction market. However, stabilization of base rates and the prospect of lower inflation should dampen supply growth and for the full year JLL does not believe that yield requirements should increase further, all other things being equal.
| Prime rents | Q4-22 | y-o-y |
|---|---|---|
| Stockholm | 1 000 | 11% |
| Gothenburg | 800 | 10% |
| Jönköping | 525 | 5% |
| Örebro | 575 | 5% |
| Skåne | 700 | 11% |
| Industrial rents/Secondary logistics | ||
| Stockholm | 775 | 3% |
| Gothenburg | 625 | 4% |
| Jönköping | 425 | 6% |
| Örebro | 475 | 6% |
| Skåne | 525 | 5% |
| Urban logistics rent | ||
| Stockholm North | 1 300 | 18% |
| Stockholm South | 1 300 | 18% |
Text and information in the market section is prepared by JLL Research in February 2023.
Logistea contributes to the UN's Agenda 2030 by supporting a sustainable society and protecting the environment, and has been a member of the UN Global Compact since 2022. The UN global goals where Logistea has the greatest opportunity to influence are:
Logistea develops the operational work within the sustainability goals in dialogue with the company´s stakeholders. The priority is to minimize the environmental impact of operations by working resource-smart, energy-efficient and environmentally friendly.
Logistea's quantifiable targets for energy consumption in new construction, and where possible in existing properties, are:
Logistea's work in the area of sustainability continued during the fourth quarter. When this report is published, Logistea has environmentally certified two properties, with a total of around 35,000 square meters, according to BREEAM In-Use Very Good.
In 2022, the work to measure and optimize the consumption of media on our properties has progressed. In some cases, actions have already been successfully implemented. At the property Vaggeryd Skogshyltan 1:4, actions have resulted in reduced electricity consumption by around 57 percent on an annual basis, which corresponds to over 2,200 MWh in lower consumption. An investment for both our tenants and for the society.
Since 2021, Logistea has been the main sponsor of the Gothenburg-based sports association Grunden Bois. The association welcomes anyone with intellectual disabilities who wants to participate in sports in football, floorball and gymnastics. With the sponsorship, Logistea wants to create conditions for more young people and adults who want to play sports to do so. For more information about the association, see also www.grundenbois.com.
Sustainability framework
The fourth quarter, like the full year 2022, has been characterized by rising inflation and a Swedish Riksbank that has acted with the aim of lowering inflation to its target of 2.0 percent. The price increases have been broad in fuels, raw materials, consumables, food and energy prices. Interest rates and electricity prices have been volatile, while a relatively warm winter in Europe has resulted in filled gas stocks and lower electricity prices at the end of the period. The Swedish economy has begun to decline and there are clear signs that Sweden is on its way or has already fallen into a recession.
The capital market remains volatile and hesitant and remains still unavailable for many. In the fourth quarter, there were significantly fewer issues by a smaller number of issuers than in the same period last year. More real estate companies are forced to rely on bank financing or other types of alternative financing. Several companies have also chosen to divest assets to refinance or resolve all or part of their bond maturities, which has meant that some companies that in 2021 were net buyers of properties, in 2022 instead net divested properties to handle debt maturities.
Logistea mainly uses bank financing and to some extent the capital market to finance investments such as acquisitions, new construction and refinement of the existing portfolio in the form of mainly tenant customizations. Bank financing accounts for 79 percent (63) of the total interest-bearing debt.
Logistea's interest-bearing net debt (interest-bearing liabilities minus cash and cash equivalents) amounted to SEK 2,553 million (1,468) on the balance sheet date, corresponding to a loan-to-value ratio of 55.2 percent (55.9) of the properties' market value. The interest cover ratio amounted to 2.2 times (1.8). Of the interest-bearing gross debt, secured bank financing accounted for SEK 2,056 million (1,062), SEK 500 million (500) comprised of unsecured bonds and SEK 59 million (131) consisted of promissory notes.
Of the interest-bearing liabilities, SEK 2,505 million (1,514) consisted of long-term liabilities and SEK 100 million (172) of short-term liabilities. On the balance sheet date, Logistea had outstanding green unsecured bonds of SEK 500 million issued during the fourth quarter of 2021, under a total framework of SEK 1,000 million. The bond loan has a margin of 5.15 percent, a maturity of 3 years and matures in October 2024. In January 2023, Logistea repurchased bonds corresponding to SEK 23.8 million.
The average interest rate and capital maturity amounted to 2.1 years (0.5) and 2.7 years (2.4), respectively, at the end of the period. The average interest rate was 4.8 percent (3.1), including the effect of interest rate derivatives. At the end of the year, the nominal amount of the interest rate swaps amounted to SEK 1,149 million with an average interest rate of 2.3 per cent and the nominal amount for the interest caps amounted to SEK 20 million with an interest cap of 1.5 per cent. The company has also entered agreements regarding performance swaps of a nominal amount of SEK 700 million, of which SEK 350 million with a barrier level of 3.5 percent and SEK 350 million with a barrier level of 4.0 percent. The average interest rate, the fixed rate, for the performance swaps amounts to 2.1 percent, which is paid if the variable interest rate (Stibor 3 months) is below the barrier levels for each swap. The measures implemented during the quarter to extend the fixed interest rate and increase the share of interest secured debt reduced the average interest rate by 0.2 per cent.
Net borrowing during the period amounted to a total of SEK 918 million (614). During the past year, the Group has raised SEK 1,079 million (1,256) in new loans and amortized SEK 161 million (642). At the end of the period, Logistea had cash and cash equivalents amounting to SEK 52 million.
Distribution of interest-bearing liabilities
During the period, Logistea extended the fixed interest rate and at the same time reduced the interest cost through interest rate derivatives. The implemented measures reduce Logistea's interest rate risk and gives Logistea a better protection against increasing interest rates. At the end of the period, the nominal value of Logistea's derivatives portfolio amounted to SEK 1,168 million (0) and consisted of performance swaps, interest rate swaps, interest rate caps maturing in 2024–2028. The market value of derivatives at the year-end amounted to SEK 10 million (0). The change in market value amounted to SEK 8 million and is explained by increased market interest rates.
As part of Logistea's work with the interest rate risk, the company uses various derivative instruments. The purpose of these is to reduce interest rate risk over time. Below is a description of how the instruments Logistea has chosen to use will affect the risk.
Interest rate swap is an agreement in which two parties exchange interest flows over a fixed period. One party may exchange its variable interest rate for a fixed rate, while the other party may exchange fixed interest for a variable rate. As Logistea's debt portfolio consists of variable bank and bond loans with a fixed margin, but with a variable component as of the 3-month Stibor, Logistea has chosen to buy interest rate swaps to pay a fixed interest rate and to receive the Stibor 3-month interest rate. In this way, Logistea has tied the interest rate for part of the loans.
Interest rate caps mean that an upper limit is set for the variable interest rate in the form of a predetermined interest rate level (barrier). If the variable interest rate goes above the barrier level, Logistea receives the interest rate above the barrier level.
Performance swap is a combination of an interest rate swap and an interest rate cap where Logistea bought an interest rate swap and sold/issued an interest rate cap. The average interest rate (fixed rate) for all performance swaps amounts to 2.12 percent and the average barrier level amounts to 3.75 percent. The fixed interest rate in the interest rate swap is paid as long as the 3-month Stibor is below the chosen barrier level at any given interest rate setting period. Should 3-month Stibor be at or above the respective barrier level before a new interest rate setting period, the interest rate hedge for that interest period expires and Logistea pays 3-month Stibor until the 3-month Stibor falls below the barrier level again.
In 2021, Logistea established a green financial framework with the aim of financing and refinancing green and energy-efficient buildings as well as investments in energy efficiency such as solar panels. The green finance framework is established in accordance with the Green Bond Principles, designed by ICMA (International Capital Markets Association) and the Green Loan Principles, designed by the LMA (Loan Market Association). The framework is audited by ISS ESG, an independent third party. In 2021, Logistea issued SEK 500 million in senior unsecured bonds within the framework, which in total amounts to SEK 1,000 million. The company's green assets amounted to approximately SEK 465 million on the balance sheet date. Logistea's operational target is for 50 percent of the loan portfolio to consist of green financing by the end of 2026. On the balance sheet date, 19 per cent of the loan portfolio consisted of green financing.
| Credit maturity | Interest rate maturity | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Maturity date | Bank loans, MSEK |
Bond loans, MSEK |
Other interest bearing debt, MSEK |
Total debt, MSEK |
Share, % | Volume, MSEK |
Share, % | Average fixed interest rate term, years |
|
| 0-1 years | - | - | 56 | 56 | 2 | 1 444 | 55 | 0,2 | |
| 1-2 years | 917 | 500 | 3 | 1 420 | 54 | 103 | 4 | 0,1 | |
| 2-3 years | 887 | - | - | 887 | 34 | 230 | 9 | 0,2 | |
| 3-4 years | - | - | - | - | - | 50 | 2 | 0,1 | |
| >4 years | 252 | - | - | 252 | 10 | 788 | 30 | 1,5 | |
| Total | 2 056 | 500 | 59 | 2 615 | 100 | 2 615 | 100 | 2,1 |
Logistea's shares are listed on Nasdaq Stockholm Mid Cap and had around 13,000 shareholders at the end of the period. The ten largest owners as of 31 December 2022 are shown in the table below.
Each class A share corresponds to one vote and one class B share corresponds to one tenth of a vote.
| Shareholder | LOGI A | LOGI B Capital, % | Votes, % | |
|---|---|---|---|---|
| Ilija Batljan directly and via legal entity | 2,395,851 | 24,150,511 | 21.9 | 23.2 |
| Dragfast AB | 3,074,888 | 8,700,000 | 9.7 | 19.0 |
| M2 Capital Management AB | 434,226 | 11,215,214 | 9.6 | 7.5 |
| Stefan Hansson directly and via legal entity |
614,787 | 6,995,921 | 6.3 | 6.3 |
| Phoenix Insurance Ltd. | - | 7,787,705 | 6.4 | 3.8 |
| Karlskoga Industrifastigheter AB | 20,000 | 6,500,000 | 5.4 | 3.2 |
| Kattvik Financial Services AB | 51,223 | 4,359,386 | 3.6 | 2.4 |
| Avere Fastigheter AB | 267,917 | 1,362,948 | 1.3 | 2.0 |
| Trenäs Förvaltning AB | 394,182 | 41,828 | 0.4 | 1.9 |
| Futur Pension | 171,995 | 2,005,277 | 1.8 | 1.8 |
| Subtotal 10 largest shareholders | 7,425,069 | 73,118,790 | 66.5 | 71.1 |
| Other | 2,143,323 | 38,366,875 | 33.5 | 28.9 |
| Total | 9,568,392 | 111,485,665 | 100.0 | 100.0 |
Source: Euroclear and shareholders
In December 2022, Logistea entered into an agreement with Nordika regarding the acquisition of two properties in Partille with an underlying property value of SEK 292 million. In the first quarter of 2023, Logistea will, in a directed issue to the seller, issue 1,455,643 class A and 16,960,379 class B shares. As the transaction and issue are unconditional, diluted earnings per share are reported in the Group's income statement with the effect of the issue presented. The total amount of shares after the share issue will be 139 470 079 shares.
With the support of the Board of Directors' issue authorization from the Annual General Meeting on May 5, 2022, Logistea has continued to pay for property acquisitions with newly issued shares. This is estimated to create shareholder value for existing shareholders. During the financial year of 2022, 5,336,752 new class B shares were issued in connection with acquisitions.
At the Extraordinary General Meeting in October 2021, it was decided to implement an option program for employees and key personnel. As the share price at the balance sheet date was below the strike price of the options, which at the same time was 28,9 SEK per share, results in that Logistea does not report any dilution effects.
| Market cap | 1.4 BSEK |
|---|---|
| Market place | Nasdaq Stockholm, Mid Cap |
| LEI code | 549300ZSB0ZCKM1SL747 |
| Number of shareholders | 12,964 |
| Ordinary shares class A Number of shares Closing price ISIN |
9,568,392 12.5 SEK SE0017131329 |
|---|---|
| Ordinary shares class B Number of shares Closing price ISIN |
111,485,665 11.9 SEK SE0017131337 |
Total outstanding shares as of the balance sheet date amount to 121,054,057 shares.
| Oct-Dec | Jan-Dec | ||||
|---|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | ||
| Property related | |||||
| Fair value investment properties, MSEK | 4 623 | 2 607 | 4 623 | 2 607 | |
| Rental income, MSEK | 80 | 33 | 257 | 93 | |
| Rental value, MSEK | 298 | 154 | 298 | 154 | |
| Net operating income, MSEK | 60 | 21 | 186 | 65 | |
| Economic occupancy rate, % | 98,1 | 95,2 | 98,1 | 95,2 | |
| Wault, years | 7,8 | 6,2 | 7,8 | 6,2 | |
| Yield, % | 6,2 | 5,8 | 6,2 | 5,8 | |
| Operating margin, % | 75,0 | 63,6 | 72,4 | 69,9 | |
| Adjusted operating margin, % | 90,9 | 75,0 | 85,7 | 80,0 | |
| Number of investment properties | 68 | 41 | 68 | 41 | |
| Financial | |||||
| Return on equity, % | -2,6 | 99,6 | 22,2 | 38,5 | |
| Equity ratio, % | 38,7 | 36,0 | 38,7 | 36,0 | |
| Interest bearing net debt, MSEK | 2 553 | 1 458 | 2 553 | 1 458 | |
| Loan to value, % | 55,2 | 55,9 | 55,2 | 55,9 | |
| Interest cover ratio, multiples | 1,9 | 2,0 | 2,2 | 1,8 | |
| Average interest, % | 4,8 | 3,1 | 4,8 | 3,1 | |
| Average fixed-interest period, years | 2,1 | 0,5 | 2,1 | 0,5 | |
| Average tied-up capital, years | 2,7 | 2,4 | 2,7 | 2,4 | |
| Share-related | |||||
| Profit from property mgmt per ordinary share A and B, SEK | 0,2 | 0,1 | 0,6 | 0,2 | |
| Earnings per ordinary share A and B, SEK¹⁾ | -0,1 | 2,4 | 2,8 | 3,7 | |
| NAV per ordinary share A and B, SEK | 16,9 | 11,8 | 16,9 | 11,8 | |
| Equity per ordinary share A and B, SEK | 15,4 | 10,9 | 15,4 | 10,9 | |
| Share price per ordinary share A, SEK | 12,5 | 49,5 | 12,5 | 49,5 | |
| Share price per ordinary share B, SEK | 11,9 | 33,3 | 11,9 | 33,3 | |
| Dividend per ordinary share A and B, SEK | - | - | - | - | |
| EPRA | |||||
| EPRA NRV, SEK/share | 16,9 | 11,8 | 16,8 | 11,8 | |
| EPRA NTA, SEK/share | 15,5 | 10,9 | 15,6 | 10,9 | |
| EPRA NDV, SEK/share | 15,4 | 10,9 | 15,5 | 10,9 | |
| EPRA EPS | 0,2 | 0,1 | 0,6 | 0,2 | |
| Number of outstanding ordinary shares class A and B, thousands | 121 054 | 96 289 | 121 054 | 96 289 | |
| Average number of outstanding ordinary shares, thousands | 121 004 | 87 428 | 112 922 | 78 768 |
¹Earnings per ordinary share are adjusted retroactively for the bonus issue and reverse split in November 2021.
For definitions of key figures, see page 23. Reconciliation tables for calculating key figures are available on Logistea's website.
Accounting policies and calculation methods have remained unchanged compared to the annual accounts for the previous year. This interim report is prepared in accordance with IAS 34 Interim Reporting and the Annual Accounts Act. Disclosures under IAS 34 interim reports are disclosed both in notes and elsewhere in the report. Comparative figures for result items in text are for the corresponding period of the previous year. Comparative figures for balance sheet items in text are from the balance sheet date 2021- 12-31.
The fashion business, which was conducted in the previously fully owned subsidiaries Odd Molly Sverige AB and Used By International AB, was divested on July 1, 2021 to MBRS Group AB (MBRS), formerly We aRe Spin Dye AB (publ). In connection with the transaction, Logistea received newly issued shares corresponding to approximately 53 percent of the number of outstanding shares in MBRS. MBRS was part of the Logistea Group until 22 October 2021 when it was decided to distribute the shares to Logistea's shareholders in a so-called Lex Asea dividend. The result from the fashion business and MBRS is referred to in the income statement as profit for distributed operations, see Note 4. Finally, cash flow for the fashion business and MBRS is also broken out and is reported as cash flow from distributed operations, see Note 5.
Acquired investment properties are initially recognized at acquisition cost, which includes directly attributable costs to the acquisition. Investment property is then accounted for at fair value at level three of the fair value hierarchy with changes in the value of the income statement. The Group's properties consist mostly of warehouse and logistics properties, which have a similar risk profile and valuation methodology. The average rental period on all contracts at the balance sheet date was 7.8 years (6.2). The essential variables, which are decisive for the calculated fair value, are discount rate and rental value. Other important variables are long-term net operating income, rent levels, vacancy levels and geographical location. The basis for determining the yield requirement is, among other things, the market's assessment of the risk-free interest rate for real estate investments, at any given time. The yield requirement is based on several factors such as market interest rates, inflation expectations and return requirements on invested capital. Specific property conditions affect the yield requirement. The yield requirement is the property's net operating income in relation to the fair value. As a discount rate, the market's dividend yield is used with additions for annual inflation. The level of annual future inflation is estimated at 2.0 - 4.0 percent. More information about Logistea's valuations can be found in Note 10 in the Annual Report 2021.
The fair value of the Group's building rights is based on local price analyses from transactions in the area with similar building rights. Costs incurred for, for example, land development are added to the fair value.
Through its operations, the Group is exposed to risks and uncertainties. A description of the Group's risks can be found on pages 32–37 and in Note 17 of the Annual Report for 2021. The Annual Report 2021 can be found on Logistea's website.
| Oct-Dec | Jan-Dec | |||
|---|---|---|---|---|
| MSEK | 2022 | 2021 | 2022 | 2021 |
| Rental income | 80 | 33 | 257 | 93 |
| Whereof supplements | 14 | 5 | 40 | 12 |
| Property costs | -20 | -12 | -71 | -28 |
| Net operating income | 60 | 21 | 186 | 65 |
| Operating margin | 75% | 64% | 72% | 70% |
| Adj. operating margin | 91% | 75% | 86% | 80% |
The table above shows how much of the total rental income constitutes of rental supplement. Adjusted operating margin is net operating income divided by rental income excluding the rent supplements and shows how much of the property costs that are forwarded to the tenants.
| Oct-Dec | Jan-Dec | |||
|---|---|---|---|---|
| MSEK | 2022 | 2021 | 2022 | 2021 |
| Interest income | 3.6 | 0.2 | 4.7 | 0.2 |
| Interest costs | -31.7 | -11.3 | -85.4 | -24.6 |
| Capitalised interest | 1.7 | 2.7 | 12.6 | 2.7 |
| Interest costs IFRS 16 | -0.6 | -0.2 | -0.7 | -0.2 |
| Arrangement fees | -1.3 | -1.1 | -6.1 | -1.2 |
| Net financial income | -28.3 | -9.7 | -74.9 | -23.1 |
| Jan-Dec | |||
|---|---|---|---|
| MSEK | 2022 | 2021 | |
| Net income | - | 195 | |
| Other operating income | - | 1 | |
| Total income | - | 196 | |
| Commodities | - | -72 | |
| Other external costs | -2 | -88 | |
| Staff costs | -3 | -44 | |
| Depreciation | - | -16 | |
| Other operating costs | - | - | |
| Operating profit | -5 | -24 | |
| Financial costs | - | - | |
| Profit before tax | -5 | -24 | |
| Tax | - | - | |
| Profit for the period from distributed operations | -5 | -24 |
| MSEK | 2022 | 2021 |
|---|---|---|
| Cash flow from operating activities | -5 | -24 |
| Cash flow from investing activities | - | - |
| Cash flow from financing activities | - | - |
| Cash flow for the period from distributed operations |
-5 | -24 |
More information about distributed operations can be found in Note 1, Accounting policies.
For 2022, the unrealized change in value amounted to SEK 339 million (378). Of the total change in value for the year, SEK 321 million was based on rising net operating income as a result of rent increases mainly due to CPI adjustment, SEK -76 million was due to changed assumptions about dividend yield requirements and SEK 38 million was related to project profit. Of the total change in value for the year, deferred tax rebate on acquisitions accounts for SEK 56 million.
Changes in value in the fourth quarter amounted to a total of SEK -12 million (262). Of the change in value, SEK 259 million was attributed to increased net operating income as a result of rent increases due to mainly CPI adjustment, SEK -316 million was due to upwardly adjusted yield requirements and SEK 34 million was due to completed projects. Of the total change in value for the quarter, deferred tax rebate on acquisitions accounts for SEK 11 million.
| MSEK | 2022 | 2021 | |
|---|---|---|---|
| Opening balance 1 January | 2,607 | 887 | |
| Investment in existing properties | 196 | 161 | |
| Acquisitions | 1,489 | 1,181 | |
| Divestments | -8 | - | |
| Unrealized changes in value | 339 | 378 | |
| Jan-Dec | Closing balance 31 december | 4,623 | 2,607 |
The initial yield for Logistea's cash flow-generating properties at the end of the period was 6.16 percent, compared with 5.85 percent at the end of the previous quarter and 5.91 percent at the end of 2021. The valuation yield at the end of the period was 6.20 percent.
| Change in value | |||
|---|---|---|---|
| MSEK | Change | 2022 | 2021 |
| Yield | +/- 0.25%-units | -185/+201 | -84/+91 |
| Rental income | +/- 5.00% | +260/-260 | +129/-129 |
All acquisitions made during the period are classified as asset acquisitions.
| Oct-Dec | Jan-Dec | |||
|---|---|---|---|---|
| MSEK | 2022 | 2021 | 2022 | 2021 |
| Intra-group revenue | 20 | 26 | 74 | 27 |
| Administration costs | -18 | -11 | -63 | -32 |
| Operating profit (loss) | 2 | 15 | 11 | -5 |
| Profit from financial items | 3 | -3 | -8 | 115 |
| Year-end appropriations | 0 | 5 | 0 | 5 |
| Profit before tax | 5 | 17 | 3 | 115 |
| Tax | -6 | - | -6 | - |
| Net profit for the period | -1 | 17 | -3 | 115 |
| Items which can be recognized as profit for the period | ||||
| Translation difference etc | - | 0 | - | 0 |
| Comprehensive income for the period | -1 | 18 | -3 | 115 |
In the Parent Company, there are no transactions attributable to Other comprehensive income, which is why a Report of Comprehensive Income has not been prepared.
| MSEK | 31/12/2022 | 31/12/2021 |
|---|---|---|
| ASSETS | ||
| Non-current assets | ||
| Intangible assets | 1 | 1 |
| Tangible assets | 2 | - |
| Shares in group companies | 933 | 791 |
| Receivables from group companies | 2,101 | 1,104 |
| Deferred tax assets | - | 6 |
| Total non-current assets | 3,037 | 1,902 |
| Current assets | ||
| Receivables from group companies | 215 | 218 |
| Other receivables | 12 | 22 |
| Cash and cash equivalents | 33 | 150 |
| Total current assets | 260 | 390 |
| TOTAL ASSETS | 3,297 | 2,292 |
| EQUITY AND LIABILITIES | ||
| Restricted equity | 63 | 50 |
| Unrestricted equity | 1,093 | 612 |
| Total equity | 1,156 | 662 |
| Untaxed reserves | 1 | - |
| Long-term liabilities | ||
| Interest bearing liabilities | 1,827 | 1,491 |
| Liabilities to group companies | 21 | 28 |
| Total long-term liabilities | 1,848 | 1,519 |
| Short-term liabilities | ||
| Interest bearing liabilities | 81 | 38 |
| Liabilities to group companies | 186 | 43 |
| Other liabilities | 25 | 30 |
| Total short-term liabilities | 292 | 111 |
| TOTAL EQUITY AND LIABILITIES | 3,297 | 2,292 |
The Board of Directors and the CEO assure that the interim report provides a fair overview of the Parent Company's and the Group's operations, position, results and describes significant risks and uncertainties that the Parent Company and the companies that are part of the Group face. The interim report has not been reviewed by the company's auditor.
Stockholm 17 February 2023
Logistea AB (publ) Corporate ID 556627-6241
Patrik Tillman Chairman of the Board
Bengt Kjell Deputy Chairman of the Board Anneli Lindblom Board member
Caroline Thagesson Board member
Johan Mark Board member
Sanja Batljan Board member
Stefan Hansson Board member
Niklas Zuckerman Chief Executive Officer
| MSEK | 30/09/2021 | 31/12/2021 | 31/03/2022 | 30/06/2022 | 30/09/2022 | 31/12/2022 | 17/02/2023 |
|---|---|---|---|---|---|---|---|
| Income investment properties | 87 | 155 | 179 | 247 | 254 | 298 | 317 |
| Income project properties | 34 | 34 | 20 | 24 | 26 | 15 | 15 |
| Non recoverable property costs | -22 | -31 | -33 | -34 | -34 | -35 | -36 |
| Net operating income | 99 | 158 | 166 | 237 | 246 | 278 | 296 |
| Central administration | -15 | -20 | -26 | -30 | -32 | -39 | -39 |
| Net finance costs | -23 | -53 | -55 | -84 | -93 | -117 | -123 |
| Profit before tax | 61 | 85 | 85 | 123 | 121 | 122 | 134 |
| The table above presents the earning capacity of the Group on a 12- month basis. Earnings are calculated on the property portfolio that is owned on each date. Net financial items are calculated on the outstanding interest-bearing liabilities and the current interest rate level at each date. Since the earnings capacity is not to be equated with a forecast, but is intended to reflect a common year, actual outcomes may differ due to both decisions that affect the outcome positively or negatively in relation to common years and unforeseen events. The presented earning capacity does not contain an assumption of changes of rents, vacancies or interest rates and only aims to make income and costs visible given the capital structure and organization at each balance sheet date. |
Logistea's income statement is also affected by changes in value and changes in the property portfolio. None of this has been taken into account in the current earning capacity. Net operating income is based on leases contracted at each date and normalized, non recoverable, property costs for the current property portfolio. In addition, it includes the rental value, property costs and estimated financing costs on an annual basis for the ongoing projects that are planned to be completed in 2023 and 2024, where leases have been signed. Rental income is recognized excluding rental supplements and real estate costs less rent supplements, see Note 2. |
||||||
| Other information | |||||||
| Seasonal variations The leases in the company's property portfolio are approximately 80 percent so-called triple net agreements, which means that the tenant accounts for the absolute majority of operating and maintenance costs. In cases where the property owner is responsible for media costs, seasonal variations in property costs may occur, where, for example, costs for electricity and heating are higher during the colder months of the year. |
percent of the company's profit. Over the next few years, the Board intends to prioritize growth over dividends, which may result in low or non-dividends to ordinary shares. The Board of Directors has decided not to propose any dividend to the upcoming Annual General Meeting in 2023. Significant events after the end of the balance sheet date In January 2023, the property Borås Vindan 1 was certified |
||||||
| Employees | according to BREEAM In-Use Very Good. | ||||||
| The Group had a total of 17 (9) permanent employees at year-end. In the corresponding period for 2021, only employees are listed as eligible for continuing operations, i.e. real estate operations. The average number of employees during the fourth quarter was 17 people (6). |
During January 2023, Logistea repurchased bonds loans in its own issued bond corresponding to an amount of SEK 23.8 million, which reduces the interest cost by almost SEK 2 million on an annual basis given the current interest rate level. |
||||||
| Dividend | Auditor's review | ||||||
| The Board's objective is to annually propose to the Annual General | The interim report has not been subject to review by the company's auditor. |
The Board's objective is to annually propose to the Annual General Meeting to decide on a dividend corresponding to at least 30
The interim report has not been subject to review by the company's
Net operating income as a percentage of basic rental income.
Average remaining maturity of the interest rate for interest-bearing liabilities.
Average interest rate for interest-bearing liabilities on balance sheet day.
Average number of shares outstanding during the period.
Assessed buildable gross area, in square meters.
Central administrative costs refer to costs for group management and group-wide functions.
Profit after tax in relation to the average number of ordinary shares outstanding.
Annual contract value divided by rental value excluding project properties.
Equity¹) with the retrieval of derivatives and deferred tax.
EPRA NRV less intangible assets and assessed fair value of deferred tax.
EPRA NTA with the repossession of intangible assets, derivatives and deferred tax in full.
Profit from property management less current tax per ordinary share.
Equity¹) in relation to the number of ordinary shares outstanding.
Equity as a percentage of the balance sheet total.
Interest-bearing liabilities less interest-bearing assets and cash and cash equivalents.
Net operating income deducting central administration costs divided by the net interest costs (excl. effects from land lease and IFRS 16).
Interest-bearing liabilities after deduction of cash and cash equivalents in relation to the fair value of the properties.
Equity¹) with the reverse of deferred tax liabilities in relation to the number of ordinary shares outstanding.
The number of investment properties in the balance sheet includes properties under day-to-day management as well as project properties.
Number of ordinary shares outstanding at the balance sheet date.
Net operating income as a percentage of revenue.
Profit from property management in relation to the average number of ordinary shares outstanding.
Properties where ongoing renovation or extension affects the landlord more than 40 percent.
Profit after tax on an annual basis divided by the average of opening and closing equity¹) .
Annual contract value with supplements for assessed market rent for vacant premises.
Share price on balance date.
Change in fair value excluding acquisitions, divestments and investments.
Net operating income in relation to the investment property's fair value (excluding project properties).
Logistea applies the European Securities and Markets Authority's (ESMA) guidelines on Alternative Performance Measures. The guidelines aim to make alternative performance measures in financial statements more comprehensible, reliable and comparable, thereby promoting their usefulness. For the purposes of these Guidelines, an alternative performance indicator means a financial measure of past or future performance, financial performance, financial performance or cash flows that is not defined or set forth in the applicable financial reporting rules; IFRS and the Annual Accounts Act. Derivation of alternative performance measures can be found on Logistea's website.
¹ ) Equity attributable to parent company shareholders.
Logistea AB (publ) is a Swedish real estate company with a vision of being the natural long-term partner to companies that demand sustainable and modern premises for warehousing, logistics and light industry. The vision is realized through the company's business concept of acquiring, developing and managing properties and land. The company's shares are listed on Nasdaq Stockholm Mid Cap under the tickers LOGI A and LOGI B.
The Board's objective is to annually propose to the Annual General Meeting to decide on a dividend corresponding to at least 30 percent of the company's profit. Over the next few years, the Board intends to prioritize growth over dividends, which may result in low or non-dividends to ordinary shares.
| Interim Report Q1 2023 | 2023-05-05 |
|---|---|
| Annual General Meeting | 2023-05-05 |
| Interim Report Q2 2023 | 2023-07-14 |
| Interim Report Q3 2023 | 2023-10-27 |
Niklas Zuckerman CEO [email protected] +46 (0)708 39 82 82
Philip Löfgren CFO [email protected] +46 (0)705 91 15 45
This information is information that Logistea AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact persons set out above, on 17 February 2023 at 07:30 CET.
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