Quarterly Report • Feb 11, 2022
Quarterly Report
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AB Sagax is a property company whose business concept is to invest in commercial properties, primarily in the warehouse and light industry segment
Profit from property management for 2022, meaning profit before revaluations and tax, based on the current property portfolio, announced acquisitions and divestments and current exchange rates, is expected to amount to SEK 3,200 M.
| Selected key performance indicators | ||||||
|---|---|---|---|---|---|---|
| 2021 Jan-Dec |
2020 Jan-Dec |
2019 Jan-Dec |
2018 Jan-Dec |
2017 Jan-Dec |
2016 Jan-Dec |
|
| Profit from property management per Class A and B share after dilution, SEK |
7.99 | 6.62 | 5.51 | 4.31 | 3.70 | 2.98 |
| Change compared with preceding year, % | 21 | 20 | 28 | 16 | 24 | 22 |
| Earnings per Class A and B share after dilution, SEK | 30.04 | 10.78 | 12.13 | 9.24 | 8.85 | 7.25 |
| Dividend per Class A and B share, SEK (2021 proposed) | 2.15 | 1.65 | 1.30 | 1.00 | 0.90 | 0.72 |
| Net debt/EBITDA, multiple | 5.8 | 6.4 | 6.6 | 7.4 | 8.1 | 8.7 |
| Interest coverage ratio, multiple | 6.5 | 5.7 | 4.9 | 4.2 | 3.7 | 3.4 |
| Debt ratio, % | 42 | 43 | 44 | 47 | 50 | 54 |
| Properties' market value, SEK M | 46,067 | 37,548 | 32,625 | 29,024 | 23,771 | 20,628 |
| Property yield, % | 6.0 | 6.3 | 6.4 | 6.8 | 6.9 | 7.1 |
1) Definitions of key performance indicators are provided on pages 30–31
The properties Salvesenintie 6 (picture above) in Jyväskylä and Tiilitie 11 in Helsinki were acquired in the fourth quarter. These properties encompass a total of 68,000 square metres of land and 18,000 square metres of lettable area.
Sagax is a property company whose business concept is to invest in commercial properties, primarily in the warehouse and light industry segment.
The overriding objective is the long-term generation of the maximum possible risk-adjusted return to the company's owners. To achieve this objective, Sagax has set the following business targets:
The table and charts below illustrate the outcome for the past five years in relation to the financial targets.
Sagax invests primarily in warehouse and industrial properties. Properties designed as warehouses and for light industries are
attractive investment opportunities, since they generate a high yield combined with a low rate of new production and stable occupancy rates. Sagax invests in add-on acquisitions and in existing properties. Property acquisitions and investments in the existing portfolio aim to increase cash flow and diversify rental revenue, thereby reducing the company's operational and financial risks.
Sagax's financial structure is designed with a clear focus on operating cash flow and interest coverage ratio. This is expected to create both excellent prerequisites for expansion and an attractive return on equity.
The company has threes classes of shares: Class A, B and D common shares. The Class D shares attract investor categories that value steady ongoing dividends.
Sagax pursues efficiency and sustainability in its management strategy. The management strategy includes clearly prioritising reputable customers with high credit ratings and obtaining long leases. This is regarded as being advantageous since it reduces the risk of vacancies, while leading to lower costs for letting premises and adapting premises to tenant needs. The company mainly enters into triple net leases and is thus only
| Outcome rolling 12 months |
Five-year average |
|
|---|---|---|
| Return on equity, measured over a five-year period, should not fall below 15% per year |
37% | 27% |
| Profit from property management per Class A and B share should increase by a minimum of 15% per year |
21% | 21% |
Profit from property management per Class A and B share
Profit from property management per Class A and B share, rolling 12 months
Objective for annual growth rate is not less than 15%
Annual percentage growth rate, rolling 12 months
affected to a limited extent by changes in consumption or changed rates for such utilities as heating, electricity, property tax, water and sewage.
The aim of Sagax's sustainability activities is to avoid shortterm gains arising at the expense of negative longer-term consequences, such as in the form of externalities. The company's investing activities, management and funding are conducted to achieve the best possible long-term – meaning sustainable – outcome. The planning, governance and monitoring of sustainability activities follow Sagax's organisational structure with well-defined delegation of responsibilities and authorities. Sustainability activities are based on applicable legislation and internal policies.
Sagax has identified the following focus areas:
Heating premises and the use of electricity account for the largest share of properties' energy use. Sagax continuously takes action to reduce its energy consumption.
Sagax works actively to combat all forms of corruption, and has a whistle-blower function available on the Sagax website and a Code of Conduct for Suppliers.
Sagax's business model is characterised in all areas by a longterm approach. Short-term gains are subordinate to the company's long-term value creation. Accordingly, sustainability work is integrated into the business model.
The development of the company is dependent on highly skilled employees. For this reason, it is important that the company is an attractive employer that can attract and has the ability to retain highly skilled personnel. Sagax employees are expected to assume responsibility for their work duties and serve as good representatives of the company's values and culture.
The profit/loss and cash flow items below refer to the January to December 2021 period. The comparative items refer to the year-earlier period. Amounts for the balance-sheet items and comparative figures refer to the position at the end of the current period and end of the year-earlier period.
Profit from property management rose 17% to 2,805 M (2,389), of which joint ventures and associated companies accounted for SEK 713 M (565). The increase in profit from property management was attributable to property acquisitions and higher profit from property management in joint ventures and associated companies. Profit from property management per Class A and B share after dilution rose 21% to SEK 7.99 (6.62).
Changes in the value of properties increased profit by SEK 6,336 M (2,003).
Revaluation of financial instruments had an impact on profit of SEK 1,966 M (210). The revaluation of listed shares accounted for SEK 1,700 M (77). The revaluation of financial instruments attributable to joint ventures amounted to SEK 134 M (156) pursuant to IFRS 9, while fixed income derivatives accounted for SEK 132 M (–24) and other financial instruments for SEK 0 M (1).
Profit after tax for the year was SEK 9,807 M (3,711).
Rental revenue rose 7% to SEK 3,100 M (2,898). Revenue was primarily positively affected by property acquisitions. Revenue was impacted by SEK –75 M compared with the year-earlier period due to the SEK strengthening against the EUR.
During the year, rental revenue in comparable portfolios increased 0.9% (2.5) excluding currency effects. The largest increase was found in the market segments of Helsinki (4.4%), Rest of Sweden (2.6%), and Rest of Europe (2.6%). Other market segments reported on average unchanged rental revenue in comparable portfolios excluding currency effects. Other revenue amounted to SEK 23 M (10).
The economic occupancy rate amounted to 96% (95). During the year, the vacancy value rose SEK 134 M (128) due to tenants vacating premises and declined SEK 159 M (123) due to new lettings. Fixed-term rent discounts for new tenants increased SEK 2 M (13) to SEK 37 M (35) on an annual basis at the end of the period. Acquisitions and property divestments during the year impacted the vacancy value by SEK –3 M (10). In total, the vacancy value declined SEK 24 M (previous year increase 24) to SEK 135 M (159) at the end of the year.
At the end of the year, notice of termination had been served for leases with a rental value of SEK 107 M (68), of which leases with notice of vacating the premises accounted for SEK 105 M (68) and leases with notice of renegotiation for SEK 2 M (–). Of the leases for which notice had been received, vacancies corresponding to a rental value of SEK 55 M will occur in 2022. Leases for premises that have not yet been occupied reduced the adjusted vacancy value by SEK 34 M (17).
Operating and maintenance costs amounted to a total of SEK 324 M (311). Expenses for property tax increased to SEK 153 M (141). Other property expenses rose to SEK 73 M (60). The increase was primarily due to property acquisitions.
Central administration costs amounted to SEK 147 M (132), corresponding to 4.7% (4.5) of rental revenue for the year.
At the end of the year, Sagax had 87 (77) employees. Functions such as property caretaking and on-call operations are outsourced. Sagax has offices in Stockholm, Helsinki, Rotterdam, Paris and Barcelona.
| Total |
|---|
| 36 |
| 28 |
| 10 |
| 7 |
| 6 |
| 87 |
| Amounts in SEK M | 2021 Jan-Dec |
2020 Jan-Dec |
|---|---|---|
| Opening vacancy for each year | 159 | 135 |
| Vacancies | 134 | 128 |
| New lettings | –159 | –123 |
| Change in discounts provided | 2 | 13 |
| Vacancy value, acquired properties | 11 | 11 |
| Vacancy value, sold properties | –14 | –1 |
| Change in exchange rates | 2 | –3 |
| Closing vacancy value | 135 | 159 |
| Terminated for renegotiation | 2 | – |
| Terminated lease, not vacated | 105 | 68 |
| Letting, not occupied | –34 | –17 |
| Adjusted closing vacancy value | 207 | 210 |
| Year of vacancy | No. of leases |
Rental value, SEK M |
|---|---|---|
| 2022 | 50 | 55 |
| 2023 | 10 | 33 |
| 2024 | 2 | 5 |
| 2025 | 4 | 4 |
| 2026 | – | – |
| >2026 | 2 | 8 |
| Total | 68 | 105 |
| Area | Rental value, SEK M |
Vacancy value, SEK M1) |
Economic va cancy rate1) |
Lettable area, sqm |
Vacant area, sqm |
Vacancy rate by area |
|---|---|---|---|---|---|---|
| Stockholm | 721 | 39 | 5% | 637,000 | 14,000 | 2% |
| Helsinki | 735 | 27 | 4% | 637,000 | 31,000 | 5% |
| Netherlands | 420 | 19 | 4% | 571,000 | 19,000 | 3% |
| Paris | 390 | 17 | 4% | 369,000 | 18,000 | 5% |
| Finland, university cities | 429 | 15 | 3% | 427,000 | 12,000 | 3% |
| Madrid & Barcelona | 140 | 12 | 8% | 259,000 | 29,000 | 11% |
| Rest of Sweden | 154 | 4 | 2% | 262,000 | 6,000 | 2% |
| Rest of Finland | 180 | 2 | 1% | 269,000 | 3,000 | 1% |
| Rest of Europe | 289 | 1 | 0% | 328,000 | 3,000 | 1% |
| Total | 3,459 | 135 | 4% | 3,759,000 | 134,000 | 4% |
1) The vacancy value and economic vacancy rate take into account both vacancies and discounts provided.
Profit from joint ventures and associated companies for the year amounted to SEK 2,718 M (1,033), of which profit from property management accounted for SEK 713 M (565), changes in the value of fixed income derivatives for SEK 108 M (–18), changes in the value of properties for SEK 2,464 M (759) and other SEK –9 M (–). Profit was charged with tax of SEK 558 M (272).
Interest-bearing liabilities increased to SEK 26,354 M (19,828).
Financial expenses amounted to SEK 447 M (481). The average interest rate was 1.4% (1.8) on 31 December 2021 due to refinancing and new borrowing at lower interest rates.
Financial income of SEK 113 M (39) pertained to dividends primarily from holdings in Nyfosa and interest on bonds and other financial investments.
Sagax obtains external value assessments to determine the properties' market value. The valuations are carried out by independent valuation companies and updated on a quarterly basis, except for five German properties that are only valued externally at year end. As of 31 December, 98% of the properties had been valued by authorised property appraisers. For other properties, the market value was determined as the acquisition price or internal valuations were applied. The value growth for the properties amounted to SEK 3,876 M (1,244), of which unrealised changes in value amounted to SEK 3,870 M (1,274).
| Unrealised changes in value | ||||
|---|---|---|---|---|
| Amounts in SEK M | Jan-Dec 2021 | |||
| New lettings/Renegotiations | 935 | |||
| Vacancies/Renegotiations | –338 | |||
| General change in market value | 3,273 | |||
| Total | 3,870 |
The change in the value of financial instruments amounted to SEK 1,966 M (210), of which SEK 108 M (–18) referred to joint ventures.
The change in value attributable to fixed income derivatives amounted to SEK 132 M (–24), of which SEK 108 M (–18) referred to joint ventures.
Revaluation of listed shares resulted in an unrealised change in value of SEK 1,700 M (77).
The revaluation of financial instruments attributable to joint ventures amounted to SEK 134 M (156) pursuant to IFRS 9.
Other financial instruments were revalued by SEK 0 M (1).
Sagax recognised a current tax expense of SEK 112 M (108). The deferred tax expense amounted to SEK 624 M (511). The Group's deferred tax liabilities at the end of the year amounted to SEK 3,087 M (2,476).
Cash flow from operating activities before changes in working capital amounted to SEK 2,346 M (2,219). Changes in working capital had a positive impact of SEK 32 M (314) on cash flow. Investing activities had an impact of SEK –7,023 M (–5,543) on cash flow, while cash flow from financing activities contributed SEK 4,703 M (2,926) to Sagax. In total, cash and cash equivalents changed SEK 59 M (–62) during the year.
The Parent Company, AB Sagax, is responsible for stock market issues, such as financial reporting and stock market information. Services between Group companies are charged on commercial terms and conditions and in accordance with market-based pricing. Intra-Group services comprise management services and internal interest charging. The Parent Company's management fees from Group companies amounted to SEK 60 M (57).
Profit from property management for 2022, meaning profit before revaluations and tax, based on the current property portfolio, announced acquisitions and divestments and current exchange rates, is expected to amount to SEK 3,200 M.
Current earnings capacity is reported in conjunction with interim reports and year-end reports.
The table below shows the company's earnings capacity on a 12-month basis on 1 January 2022. It is important to note that this capacity cannot be compared with a forecast for the forthcoming 12 months because it does not contain assessments about, for example, future vacancies, the interest rate scenario, currency effects, rent trends or changes in value.
The rental value is based on contractual rental revenue on an annual basis, with supplements for estimated market rents for vacant premises. Property expenses are based on actual
outcomes over the past 12 months adjusted for the holding period. Central administration costs are based on actual outcomes over the past 12 months. Net financial items are calculated based on interest-bearing liabilities and assets on the balance sheet date. Expenses for interest-bearing liabilities are based on the Group's estimated average interest rate, plus financing costs allocated over time and costs attributable to credit facilities that were unutilised on the balance sheet date. Lease expenses essentially pertain to site leasehold fees that are based on actual outcomes over the past 12 months adjusted for the holding period. Dividends attributable to the company's holdings of listed shares were not taken into account in the earnings capacity. Tax is calculated at the standard tax rate of 18% (19). Shares in profit in joint ventures and associated companies
are calculated in accordance with the same assumptions as for Sagax, taking into account the size of the participations.
| Amounts in SEK M | 1 Jan 2022 | 1 Jan 2021 |
|---|---|---|
| Rental value | 3,459 | 3,024 |
| Vacancy | –135 | –159 |
| Rental revenue | 3,324 | 2,865 |
| Property expenses | –563 | –495 |
| Net operating income | 2,761 | 2,370 |
| Central administration | –147 | –132 |
| Joint ventures and associated | ||
| companies | 780 | 638 |
| Net financial items | –354 | –372 |
| Lease expenses | –28 | –26 |
| Profit from property management | 3,012 | 2,479 |
| Tax | –542 | –471 |
| Profit after tax | 2,470 | 2,008 |
| – of which, holders of preference shares |
– | 34 |
| – of which, holders of Class D shares | 252 | 252 |
| – of which, holders of Class A and B shares |
2,218 | 1,723 |
| Run rate yield, % | 5.9 | 6.2 |
| Net debt/run rate EBITDA, multiple | 5.4 | 6.5 |
On 31 December 2021, the property portfolio comprised 673 (673) properties with a lettable area of 3,759,000 square metres (3,480,000). At the end of the year, the rental value and contractual annual rent amounted to SEK 3,459 M (3,024) and SEK 3,324 M (2,865), respectively. This corresponds to an economic occupancy rate of 96% (95).
During the year, Sagax invested SEK 5,483 M (6,251), of which property acquisitions accounted for SEK 4,824 M (5,585).
Properties were acquired with a total lettable area of 392,000 square metres. The largest investment referred to 51,000 square metres of lettable area and 92,000 square metres of land in market segment Helsinki. A total of SEK 658 M (666) was invested in the existing property portfolio. SEK 72 M of the investments for the year were made against rent supplements, SEK 145 M was invested in conjunction with new lettings, SEK 225 M in conjunction with new production, SEK 106 M pertained to property maintenance and SEK 63 M referred to project planning costs. A total of SEK 47 M was invested in solar power facilities and other energy-saving investments.
The Group has agreed to acquire four properties in France and one in Spain for which possession will be taken after the end of the year. The total investment will amount to SEK 458 M.
During the year, 89 properties were divested for a total of SEK 1,340 M. The largest sale was a portfolio comprising 72 properties in Finland for a corresponding SEK 715 M, which will be vacated in the fourth quarter.
The yield for the year in relation to market value amounted to 6.0% (6.3).
| Market value | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Segment | SEK M | Share | SEK per sqm |
No. of properties |
Lettable area, sqm |
Vacant area, sqm |
Rental value, SEK M |
Economic occupancy rate |
Contractual annual rent, SEK M |
| Stockholm | 11,755 | 25% | 18,500 | 80 | 637,000 | 14,000 | 721 | 95% | 681 |
| Helsinki | 9,076 | 20% | 14,200 | 72 | 637,000 | 31,000 | 735 | 96% | 707 |
| Netherlands | 6,090 | 13% | 10,700 | 121 | 571,000 | 19,000 | 420 | 96% | 401 |
| Paris | 4,678 | 10% | 12,700 | 97 | 369,000 | 18,000 | 390 | 96% | 373 |
| Finland, university cities | 4,217 | 9% | 9,900 | 64 | 427,000 | 12,000 | 429 | 97% | 415 |
| Madrid & Barcelona | 2,263 | 5% | 8,700 | 76 | 259,000 | 29,000 | 140 | 92% | 129 |
| Rest of Finland | 2,054 | 4% | 7,600 | 67 | 269,000 | 3,000 | 180 | 99% | 179 |
| Rest of Sweden | 2,001 | 4% | 7,600 | 30 | 262,000 | 6,000 | 154 | 99% | 150 |
| Rest of Europe | 3,933 | 9% | 12,000 | 66 | 328,000 | 3,000 | 289 | 100% | 289 |
| Total | 46,067 | 100% 12,300 | 673 | 3,759,000 | 134,000 | 3,459 | 96% | 3,324 |
| Amounts in SEK M | Property acquisitions |
Existing portfolio |
Total | Share of total investments |
Divestments Net investments | |
|---|---|---|---|---|---|---|
| Stockholm | 109 | 207 | 317 | 6% | –378 | –61 |
| Helsinki | 971 | 236 | 1,206 | 22% | –83 | 1,123 |
| Netherlands | 1,039 | 46 | 1,085 | 20% | –3 | 1,082 |
| Paris | 667 | 23 | 690 | 13% | – | 690 |
| Finland, university cities | 1,095 | 47 | 1,142 | 21% | –97 | 1,045 |
| Madrid & Barcelona | 268 | 31 | 299 | 5% | – | 299 |
| Rest of Finland | 88 | 31 | 119 | 2% | –743 | –625 |
| Rest of Sweden | 46 | 31 | 77 | 1% | –46 | 31 |
| Rest of Europe | 541 | 6 | 547 | 10% | – | 547 |
| Total | 4,824 | 658 | 5,483 | 100% | –1,351 | 4,132 |
Sagax has a diverse lease structure, which better allows the company to maintain an even occupancy rate. To reduce the risk of lower rental revenue, Sagax endeavours to create longterm relationships with the company's existing tenants and to achieve favourable diversification in terms of the length and size of its leases.
Sagax's annual rent at the end of the year was distributed between 2,009 leases (1,813). The table below presents the size of Sagax's leases in relation to the Group's annual rent at the end of the period. The table shows that 1,997 leases (1,802) each had a rental value of less than 1% of the Group's annual rent. The total rental value for these leases accounted for 81% (80) of Sagax's annual rent. In addition, Sagax is party to ten leases (eight) with a rental value corresponding to 1–2% of the Group's annual rent. Combined, these leases total 13% (11) of Sagax's annual rent. Only two (three) of Sagax's leases had an annual rental value that accounted for
more than 2% of the Group's rental revenue. These leases together represented 6% (8) of the Group's contractual annual rent.
Sagax's tenants operate in a variety of sectors. 15% (16) of rental revenue comes from tenants with food-related operations, 15% (16) from companies in the manufacturing industry and 12% (11) in the automotive-related industry, including sales, service and manufacturing. Diverse tenant industries is considered to lower the risk of vacancies and rent losses. The main sectors are presented in the pie chart below.
According to Sagax's management strategy, the company strives to secure long-term leases and an even distribution of contract maturities over the years. This is deemed to reduce the risk of significant variations in the Group's occupancy rate. Leases representing 46% of the annual rent expire in or after 2026. 12-15% of annual rent expires every year between 2022 and 2025.
| Share of | Annual rent | Average annual |
|||
|---|---|---|---|---|---|
| contractual annual rent |
SEK M | Share, % |
No. of leases |
rent, SEK M |
Lease term, years |
| >2% | 197 | 6 | 2 | 98 | 9 |
| 1–2% | 439 | 13 | 10 | 44 | 7 |
| <1% | 2,688 | 81 | 1,997 | 1 | 5 |
| Total | 3,324 | 100 | 2,009 | 2 | 5 |
| Annual rent | ||||
|---|---|---|---|---|
| Year of expiry | Area, sqm | SEK M | Share | |
| 2022 | 494,000 | 491 | 15% | |
| 2023 | 414,000 | 408 | 12% | |
| 2024 | 391,000 | 406 | 12% | |
| 2025 | 677,000 | 493 | 15% | |
| 2026 | 281,000 | 255 | 8% | |
| >2026 | 1,368,000 | 1,271 | 38% | |
| Total | 3,625,000 | 3,324 | 100% |
Service for properties, 6%
medical technology, 6%
State, municipality, 2%
Other, 16%
Logistics, 4%
Medicine,
Production properties, 5%
IT, development, education, 6% Building products, 7%
Media, 5% Manufacturing
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 >2036
industry, 15%
Food-related, 15%
Automotiverelated, 12%
Sagax prepares its consolidated financial statements in accordance with International Financial Reporting Standards (IFRS). The company has chosen to recognise its properties at fair value in accordance with the Fair Value Method in accordance with IAS 13 level 3.
Sagax obtains external value assessments to determine the properties' market value. The valuations are carried out by independent valuation companies and updated on a quarterly basis.
At 31 December 2021, the total market value of Sagax's 673 properties (673) was SEK 46,067 M (37,548). Exchange rate fluctuations during the year resulted in property values abroad increasing by SEK 518 M (1,146).
The recognised unrealised change in value amounted to SEK 3,870 M (1,274) for the year.
The valuations were carried out in accordance with generally accepted international valuation methods. As of 31 December 2021, 98% of valuation objects were valued by authorised property appraisers from independent valuation companies.
The principal method of appraisal used was cash flow calculations in which the present value of net operating income, in-
| Change in carrying amount of properties | |||||
|---|---|---|---|---|---|
| SEK M | No. | ||||
| Property portfolio, 31 December 2020 | 37,548 | 673 | |||
| Acquisition of properties | 4,824 | 89 | |||
| Investments in the current portfolio | 658 | ||||
| Divestment of properties | –1,351 | –89 | |||
| Currency translation effect | 518 | ||||
| Unrealised changes in value | 3,870 | ||||
| Property portfolio, 31 December 2021 | 46,067 | 673 |
vestments and residual values was calculated. The calculation period was adjusted to the remaining term of existing leases and varies between five and 20 years. As a rule, the calculation period is ten years. For more information, see Sagax's 2020 Annual Report, page 89.
The cost of capital for the present value calculation of cash flows (4.2–15.6%), the cost of capital for the present value calculation of residual values (4.5–15.6%) and the yield requirement for the residual value calculations (4.0–14.0%) are based on analyses of transactions carried out and on individual assessments of the risk level and market position of each property.
The weighted cost of capital for the present value calculation of cash flows and residual values for the property portfolio was 7.2% (7.4) and 7.4% (7.7), respectively. The weighted yield requirement was 6.3% (6.5) on 31 December 2021. By comparison, the yield reported by Sagax for the year was 6.0% (6.3). A comparison of the yield reported over time and the yield requirement used in valuations is provided below.
| Rest of Europe 9% (SEK 3,933 M) | |
|---|---|
| Rest of Sweden 4% (SEK 2,001 M) | |
| Rest of Finland 4% (SEK 2,054 M) |
Stockholm 26% (SEK 11,755 M) |
| Madrid & Barcelona 5% (SEK 2,263 M) |
Helsinki 20% |
| Finland, university cities | (SEK 9,076 M) |
| 9% (SEK 4,217 M) | Netherlands 13% |
| Paris 10% (SEK 4,678 M) | (SEK 6,090 M) |
Sagax's joint ventures and associated companies contributed a total of SEK 713 M (565) to profit from property management during the year. Sagax's share of changes in the value of properties amounted to SEK 2,464 M (759) and the share of changes in the value of derivatives was SEK 108 M (–18) for the period. The total value of the commitment related to ownership of joint ventures and associated companies amounted to SEK 9,818 M (6,833).
Via Hemsö Intressenter AB, Sagax indirectly owns 15% of Hemsö Fastighets AB, with the remaining share owned by the Third Swedish National Pension Fund. Hemsö Fastighets AB conducts operations in Sweden, Germany and Finland. Operations consist of owning, managing and developing public properties and 94% of rental revenue derives from tax-financed operations. For more information, refer to the company's website, hemso.se.
Sagax owns 50% of Söderport, with the remaining share owned by Nyfosa AB. Söderport's operations consist of owning, managing and developing properties in Sweden. On behalf of Söderport, Sagax handles the financial administration and most of the property management.
A corresponding 73% of Söderport's rental value of SEK 900 M was located in Stockholm on 31 December 2021. Söderport's economic vacancies amounted to SEK 43 M (51) at the end of the year, corresponding to a vacancy rate of 5% (6). Of the economic vacancies, SEK 21 M (21) comprised fixed-term rent discounts provided for new lettings. At the end of the year, Stockholm accounted for 93% of the economic vacancies. Söderport also owns 78.1% of Torslanda
Property Investment AB, which is thus included as a subsidiary in Söderport's consolidated financial statements.
Sagax owns 50% of Fastighetsaktiebolaget Ess-Sierra, with the remainder owned by NP3 Fastigheter AB. Ess-Sierra was founded in December 2020 and its operations entail owning and managing 33 properties that are let to Beijer Byggmaterial AB. The lettable area amounts to 181,000 square metres, of which 91% comprises warehouse premises/building materials retail and 9% office premises. Most of the properties are situated in university and regional towns.
Sagax owns 21.8% of the votes and 15.3% of the capital in NP3 Fastigheter AB. The market value of Sagax's holding was SEK 4,608 M. NP3 Fastigheter AB is a property company focusing on commercial investment properties with high yields mainly in northern Sweden. The company's property portfolio encompassed 446 properties with a total property value of SEK 17.3 billion and a rental value of SEK 1,538 M on 31 December 2021. NP3 Fastigheter AB is listed on Nasdaq Stockholm, Large Cap. For more information, refer to the company's website, np3fastigheter.se.
Sagax owns 25.9% of the votes and 25.4% of the capital in Fastighetsbolaget Emilshus AB. Emilshus acquires, develops and manages commercial properties in Småland. The company's property portfolio encompassed 97 properties with a total market value of SEK 4.8 billion on 31 December 2021. For more information, refer to the company's website, emilshus.com.
1) Ess-Sierra was established in December 2020.
Sagax's joint ventures
Consolidated equity amounted to SEK 31,079 M (22,452) on 31 December 2021. Changes in equity during the year were attributable to comprehensive income of SEK 9,807 M, a new issue of Class B common shares of SEK 12 M linked to the incentive plan, redemption of preference shares of SEK 571 M and a share dividend of SEK 776 M.
Sagax's interest-bearing liabilities at the end of the year amounted to SEK 26,354 M (19,828). An amount corresponding to SEK 24,009 M (15,339) of liabilities was raised in EUR.
Interest-bearing liabilities attributable to listed bonds amounted to SEK 23,198 M (14,638). The remaining interest-bearing debt comprised commercial paper of SEK 2,891 M (1,081) and liabilities to banks of SEK 265 M (4,109).
Unsecured liabilities corresponded to 99% (74) of interestbearing liabilities.
The interest coverage ratio at the end of the year amounted to 651% (575) and the debt ratio to 42% (43). Net interestbearing debt for the past 12 months was 5.8 (6.4) times EBITDA and 5.4 (6.5) times run rate EBITDA, see page 7 for more information.
A total of SEK 13,997 M (7,927) in loans was raised, of which SEK 10,131 M (3,309) in the form of bonds under the framework of Sagax's EMTN programme. Repayments during the year totalled SEK 7,880 M (4,791). Exchange rate fluctuations increased interest-bearing liabilities by SEK 352 M (decrease 750).
Net interest-bearing debt totalled SEK 16,214 M (17,114).
The average remaining fixed interest and loan maturity terms were 4.0 years (3.4) and 4.3 years (3.4), respectively, at the end of the year. The average interest rate on interest-bearing liabilities was 1.4% (1.8), including the effect of derivatives.
Sagax has SEK 22,699 M (12,336) in loans at fixed interest rates. The company has interest-rate caps and interest-rate swaps with a total nominal value of SEK 2,802 M (6,060), of which interest-rate swaps with an average interest rate of 1.3% (0.9) accounted for SEK 880 M (2,166).
| Fixed interest | Loan maturity | Interest-rate swaps | |||||
|---|---|---|---|---|---|---|---|
| Year of expiry | SEK M | Interest rate | Share | SEK M | Share | SEK M | Interest rate |
| 2022 | 3,691 | 0.5% | 13% | 95 | 0% | – | – |
| 2023 | 1,403 | 0.8% | 5% | 2,353 | 9% | 251 | 0.5% |
| 2024 | 5,323 | 2.0% | 19% | 6,535 | 25% | – | – |
| 2025 | 4,113 | 2.1% | 14% | 4,138 | 16% | – | – |
| 2026 | – | – | 0% | – | – | – | – |
| >2026 | 13,861 | 1.0% | 49% | 13,232 | 50% | 629 | 1.7% |
| Total/average | 28,391 | 1.3% | 100% | 26,354 | 100% | 880 | 1.3% |
1) Fixed interest exceeds interest-bearing liabilities by SEK 2,037 M. 2) Based on fixed interest amount.
| Amounts in SEK M | 31 Dec 2021 | 31 Dec 2020 |
|---|---|---|
| Interest-bearing liabilities | 26,354 | 19,828 |
| Interest-bearing assets | –676 | –550 |
| Listed shares | –9,380 | –2,140 |
| Cash and cash equivalents | –84 | –24 |
| Net debt | 16,214 | 17,114 |
Sagax's working capital amounted to SEK 1,173 M (–1,867) on 31 December. At the same date, unutilised credit facilities including back-up facilities for commercial paper programmes amounted to SEK 7,399 M (5,424). No additional collateral needs to be pledged to utilise these credit facilities.
| Nominal amount, | Liability, | Effective | ||||
|---|---|---|---|---|---|---|
| Maturity | SEK M | SEK M | interest | Interest terms | Maturity date | ISIN code |
| 2019-2023 | 500 | 499 | 0.98% | Stibor 3M+0.90% | 16 Jun 2023 | XS2093119175 |
| 2019-20231) | 250 | 250 | 1.18% | 1.13% | 16 Jun 2023 | XS2093119845 |
| Total/average | 750 | 749 | 1.05% | |||
| Maturity | Nominal amount, EUR M |
Liability, EUR M |
Effective interest |
Coupon rate | Maturity date | ISIN code |
| 2018-20241) | 500 | 499 | 2.10% | 2.00% | 17 Jan 2024 | XS1877540465 |
| 2019-20251) | 400 | 402 | 2.05% | 2.25% | 13 Mar 2025 | XS1962543820 |
| 2020-20271) | 300 | 298 | 1.26% | 1.12% | 30 Jan 2027 | XS2112816934 |
| 2021-20281) | 500 | 496 | 0.88% | 0.75% | 26 Jan 2028 | XS2291340433 |
| 2021-20291) | 500 | 500 | 1.01% | 1.00% | 17 May 2029 | XS2342227837 |
| Total/average | 2,200 | 2,195 | 1.46% |
1) Fixed-rate loans.
| Derivative contracts, 31 December 2021 | |||||
|---|---|---|---|---|---|
| Amounts in SEK M | Nominal amount |
Years to maturity |
Market value 31 Dec 2021 |
Market value 31 Dec 2020 |
Change for the period |
| Nominal interest-rate swaps | 880 | 5.2 | –74 | –118 | 44 |
| Interest-rate caps | 1,922 | 1.0 | 0 | 0 | 0 |
| Currency futures | 206 | 0.1 | 2 | – | 2 |
| Total | 3,008 | –72 | –118 | 46 |
| Financial covenant in EMTN programme |
2021 31 Dec |
2020 31 Dec |
|
|---|---|---|---|
| Rating according to Moody's Investor Services | Baa3, Positive outlook | Baa3, Stable outlook | |
| Net debt/Total assets | <65% | 26% | 37% |
| Interest coverage ratio | >1.8x | 9.4 x | 6.5x |
| Secured liabilities/Total assets | <45% | 0% | 11% |
Secured liabilities and commercial paper, 1% (SEK 189 M)
Sagax values signed leases and site leaseholds in accordance with IFRS 16 and recognises the right-of-use asset as an asset with a corresponding liability. Sagax's leases and site leaseholds at the end of the period amounted to SEK 390 M (394).
Interest-bearing non-current receivables amounted to SEK 676 M (550) and comprised convertible debentures issued by French company Groupe BMG valued at SEK 522 M (514) maturing on 31 December 2024, a bond issued by Emilshus AB (publ) valued at SEK 44 M (37) expiring in 2022 and promissory notes valued at SEK 110 M (–) issued in connection with the sale of property in 2021.
Sagax owns shares in Nyfosa AB, Cibus Nordic Real Estate AB, Mälaråsen AB and KMC Properties ASA. Listed shares are recognised at the closing price on the balance sheet date and amounted to SEK 4,772 M. The shares in Nyfosa AB were recognised at SEK 4,043 M (715), the shares in Cibus Nordic Real Estate AB at SEK 598 M (–), the shares in Mälaråsen AB at SEK 72 M (23) and the shares in KMC Properties ASA at SEK 60 M (–).
| Amounts in SEK M | 2021 Jan-Dec |
2020 Jan-Dec |
2021 Oct-Dec |
2020 Oct-Dec |
|---|---|---|---|---|
| Rental revenue | 3,100 | 2,898 | 806 | 746 |
| Other revenue | 23 | 10 | 4 | 3 |
| Operating expenses | –250 | –232 | –71 | –62 |
| Maintenance costs | –74 | –79 | –21 | –22 |
| Property tax | –153 | –141 | –38 | –38 |
| Other property expenses | –73 | –60 | –27 | –17 |
| Net operating income | 2,573 | 2,397 | 652 | 610 |
| Central administration | –147 | –132 | –51 | –46 |
| Profit from joint ventures and associated companies | 2,718 | 1,033 | 945 | 446 |
| – of which, profit from property management | 713 | 565 | 184 | 146 |
| – of which, changes in value | 2,572 | 741 | 1,002 | 412 |
| – of which, tax | –558 | –272 | –241 | –112 |
| – of which, other | –9 | – | – | – |
| Financial income | 113 | 39 | 35 | 9 |
| Financial expenses | –419 | –455 | 104 | –120 |
| Financial expense, interest component of leases | –28 | –26 | –8 | –7 |
| Profit including changes in value of joint ventures and associated companies | 4,809 | 2,857 | 1,470 | 894 |
| – of which, profit from property management | 2,805 | 2,389 | 708 | 594 |
| Properties, realised | 6 | –30 | 8 | –19 |
| Properties, unrealised | 3,870 | 1,274 | 1,537 | 824 |
| Financial instruments, realised | –10 | 1 | – | 1 |
| Financial instruments, unrealised | 1,868 | 228 | 1,075 | 106 |
| Profit before tax | 10,543 | 4,330 | 4,090 | 1,806 |
| Deferred tax | –624 | –511 | –169 | –250 |
| Current tax | –112 | –108 | –28 | –24 |
| Profit for the period | 9,807 | 3,711 | 3,893 | 1,532 |
| Other comprehensive income – items that may be reversed to profit or loss: |
||||
| Translation differences for foreign operations | 282 | –693 | 30 | –845 |
| Share of other comprehensive income for joint ventures | 8 | –13 | – | –21 |
| Translation differences, hedge accounting | –141 | 355 | –27 | 434 |
| Tax on items that may be reversed | 6 | 14 | 11 | 18 |
| Comprehensive income for the period | 9,963 | 3,374 | 3,907 | 1,118 |
| Earnings per Class A and B share, SEK | 30.09 | 10.80 | 11.46 | 4.61 |
| Earnings per Class A and B share after dilution, SEK | 30.04 | 10.78 | 11.45 | 4.60 |
| Earnings per Class D share, SEK | 2.00 | 2.00 | 2.00 | 2.00 |
| Average no. of Class A and B shares, millions | 317.5 | 317.1 | 317.7 | 317.3 |
| Average no. of Class A and B shares after dilution, millions | 318.0 | 317.7 | 318.0 | 317.8 |
| Average number of Class D shares, millions | 126.2 | 118.4 | 126.2 | 125.8 |
| Amounts in SEK M | 2021 31 Dec |
2020 31 Dec |
|---|---|---|
| Investment properties | 46,067 | 37,264 |
| Investment properties for sale | – | 284 |
| Leases, right-of-use assets | 355 | 368 |
| Joint ventures and associated companies | 9,818 | 6,833 |
| Interest-bearing non-current receivables | 676 | 550 |
| Other fixed assets | 103 | 130 |
| Total fixed assets | 57,020 | 45,429 |
| Listed shares | 4,772 | 738 |
| Other current assets | 596 | 430 |
| Cash and bank balances | 84 | 24 |
| Total current assets | 5,452 | 1,193 |
| Total assets | 62,472 | 46,622 |
| Equity | 31,079 | 22,452 |
| Non-current interest-bearing liabilities | 23,368 | 17,977 |
| Deferred tax liabilities | 3,087 | 2,476 |
| Derivatives | 74 | 118 |
| Lease liability, right-of-use assets | 390 | 394 |
| Other non-current liabilities | 195 | 145 |
| Total non-current liabilities | 27,114 | 21,110 |
| Commercial paper | 2,891 | 1,081 |
| Other current interest-bearing liabilities | 95 | 770 |
| Other current liabilities | 1,293 | 1,209 |
| Total current liabilities | 4,279 | 3,060 |
| Total equity and liabilities | 62,472 | 46,622 |
| Amounts in SEK M | 2021 Jan-Dec |
2020 Jan-Dec |
2021 Oct-Dec |
2020 Oct-Dec |
|---|---|---|---|---|
| Profit before tax | 10,543 | 4,330 | 4,090 | 1,806 |
| Changes in value of financial instruments | –1,858 | –228 | –1,074 | –107 |
| Change in value of properties | –3,876 | –1,244 | –1,546 | –805 |
| Profit from joint ventures and associated companies | –2,718 | –1,033 | –945 | –446 |
| Dividend from joint ventures and associated companies | 373 | 424 | 30 | 20 |
| Dissolution of allocated borrowing costs | 41 | 47 | 9 | 18 |
| Other items not included in cash flow Tax paid |
–13 –146 |
–21 –55 |
2 5 |
–17 –27 |
| Cash flow from operating activities before changes in working capital |
2,346 | 2,219 | 571 | 441 |
| Cash flow from changes in current receivables | –71 | 77 | –19 | 49 |
| Cash flow from changes in current liabilities | 103 | 260 | 80 | 105 |
| Cash flow from operating activities | 2,379 | 2,557 | 632 | 595 |
| Acquisition of properties | –4,824 | –5,585 | –1,560 | –747 |
| Property sales | 867 | 1,426 | 604 | 1,380 |
| Investments in existing properties | –658 | –666 | –240 | –209 |
| Acquisition of listed shares | –1,949 | –256 | –286 | –155 |
| Acquisition of financial instruments | –7 | –7 | – | – |
| Acquisition of joint ventures and associated companies | –214 | –260 | –47 | –246 |
| Capital contribution to joint ventures and associated companies | –271 | –150 | – | – |
| Dividend to joint ventures and associated companies | – | –41 | – | –41 |
| Increase in other fixed assets | –16 | –10 | – | – |
| Decrease in other fixed assets | 50 | 6 | – | 11 |
| Cash flow from investing activities | –7,023 | –5,543 | –1,529 | –7 |
| Issue of Class D and B shares | 36 | 527 | – | – |
| Redemption of preference shares | –572 | – | – | – |
| Dividend paid to shareholders | –792 | –679 | –63 | –278 |
| Incentive plan | –24 | –9 | – | – |
| Borrowings | 13,997 | 7,886 | 1,068 | 255 |
| Repayment of loans | –7,880 | –4,791 | –43 | –706 |
| Redemption of financial derivatives | –21 | –8 | – | –8 |
| Decrease in other non-current liabilities | –52 | – | –13 | –1 |
| Increase in other non-current liabilities | 11 | 1 | – | – |
| Cash flow from financing activities | 4,703 | 2,926 | 949 | –739 |
| Cash flow for the period | 59 | –60 | 52 | –151 |
| Exchange rate differences in cash and cash equivalents | – | –2 | – | –2 |
| Change in cash and cash equivalents | 59 | –62 | 52 | –153 |
| Cash and cash equivalents at beginning of period | 24 | 86 | 32 | 177 |
| Cash and cash equivalents at end of period | 84 | 24 | 84 | 24 |
| Other contributed |
Reserves, translation |
Profit earned incl. net profit for the |
Total | ||
|---|---|---|---|---|---|
| Amounts in SEK M | Share capital | capital | differences | period | equity1) |
| Equity, 31 December 2019 | 776 | 3,046 | 675 | 14,760 | 19,257 |
| Issue of Class D shares | 32 | 481 | – | – | 513 |
| Transaction costs | – | –4 | – | – | –4 |
| Issue of Class B shares, incentive plan | 1 | 20 | – | – | 20 |
| Transaction costs | – | –1 | – | – | –1 |
| Dividends | – | – | – | –697 | –697 |
| Redemption of incentive plan | – | – | – | –14 | –14 |
| Incentive plan | – | – | – | 5 | 5 |
| Profit for the period, January-December 2020 | – | – | – | 3,711 | 3,711 |
| Other comprehensive income, January-December 2020 |
– | – | –337 | – | –337 |
| Equity, 30 December 2020 | 808 | 3,542 | 338 | 17,765 | 22,452 |
| Issue of Class B shares, incentive plan | 1 | 36 | – | – | 36 |
| Redemption of preference shares | –29 | – | – | –543 | –571 |
| Transaction costs | – | – | – | –1 | –1 |
| Dividends | – | – | – | –776 | –776 |
| Redemption of incentive plan | – | – | – | –31 | –31 |
| Incentive plan | – | – | – | 7 | 7 |
| Profit for the period, January-December 2021 | – | – | – | 9,807 | 9,807 |
| Other comprehensive income January-December 2021 |
– | – | 155 | – | 155 |
| Equity 31 December 2021 | 780 | 3,578 | 493 | 26,228 | 31,079 |
1) Equity is attributable in its entirety to the Parent Company's shareholders.
| 2021 | 2020 | |
|---|---|---|
| Amounts in SEK M | Jan-Dec | Jan-Dec |
| Net sales | 88 | 77 |
| Administration costs | –107 | –94 |
| Loss before financial income and expenses | –19 | –17 |
| Profit from participations in Group companies | 1,154 | 511 |
| Profit from participations in joint ventures | 96 | 85 |
| Financial income | 745 | 434 |
| Financial expenses | –751 | –475 |
| Profit before tax and appropriations | 1,224 | 538 |
| Appropriations | 106 | 52 |
| Tax | –2 | –2 |
| Profit for the period | 1,328 | 589 |
| 2021 | 2020 | |
|---|---|---|
| Amounts in SEK M | 31 Dec | 31 Dec |
| Receivables from Group companies | 1,725 | 1,654 |
| Other financial fixed assets | 13,080 | 8,035 |
| Total fixed assets | 14,805 | 9,690 |
| Cash and bank balances | 31 | 0 |
| Receivables from Group companies | 19,308 | 13,669 |
| Other current assets | 77 | 93 |
| Total current assets | 19,416 | 13,762 |
| Total assets | 34,220 | 23,453 |
| Equity | 4,213 | 4,227 |
| Untaxed reserves | 30 | 30 |
| Non-current interest-bearing liabilities | 8,992 | 10,673 |
| Liabilities to Group companies | 14,829 | 3,554 |
| Deferred tax liabilities | 4 | 4 |
| Total non-current liabilities | 23,825 | 14,232 |
| Current interest-bearing liabilities | 2,983 | 1,148 |
| Liabilities to Group companies | 2,885 | 3,514 |
| Other current liabilities | 284 | 302 |
| Total current liabilities | 6,152 | 4,964 |
| Total equity, untaxed reserves and liabilities | 34,220 | 23,453 |
| Profit items | Net operating | Changes in value, properties | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| per segment | Rental revenue1) | income | Unrealised | Realised | Total yield | |||||
| Amounts in SEK M | 2021 Jan-Dec |
2020 Jan-Dec |
2021 Jan-Dec |
2020 Jan-Dec |
2021 Jan-Dec |
2020 Jan-Dec |
2021 Jan-Dec |
2020 Jan-Dec |
2021 Jan-Dec |
2020 Jan-Dec |
| Stockholm | 667 | 671 | 565 | 565 | 1,266 | 324 | –27 | –3 | 1,804 | 886 |
| Helsinki | 665 | 593 | 534 | 469 | 1,044 | 64 | 28 | – | 1,606 | 532 |
| Netherlands | 355 | 291 | 323 | 263 | 656 | 411 | 2 | –17 | 981 | 657 |
| Paris | 321 | 299 | 245 | 225 | 452 | 159 | – | – | 696 | 384 |
| Finland, university cities | 350 | 335 | 273 | 263 | –69 | 40 | –10 | 2 | 194 | 305 |
| Madrid & Barcelona | 119 | 105 | 105 | 90 | 61 | 202 | – | –1 | 166 | 291 |
| Rest of Finland | 217 | 231 | 195 | 209 | 92 | –1 | 13 | –11 | 300 | 196 |
| Rest of Sweden | 150 | 151 | 141 | 143 | 84 | 51 | – | –1 | 224 | 193 |
| Rest of Europe | 255 | 221 | 236 | 202 | 283 | 25 | – | – | 519 | 227 |
| Non-specified | – | – | –42 | –32 | – | – | – | 1 | –42 | –32 |
| Total | 3,100 | 2,898 | 2,573 | 2,397 | 3,870 | 1,274 | 6 | –30 | 6,448 | 3,641 |
| Asset items per segment |
Market value properties |
Investment properties |
Acquisition properties |
Divestment properties |
||||
|---|---|---|---|---|---|---|---|---|
| Amounts in SEK M | 2021 31 Dec |
2020 31 Dec |
2021 31 Dec |
2020 31 Dec |
2021 31 Dec |
2020 31 Dec |
2021 31 Dec |
2020 31 Dec |
| Stockholm | 11,755 | 10,552 | 207 | 297 | 109 | 386 | –378 | –295 |
| Helsinki | 9,076 | 6,771 | 236 | 237 | 971 | 32 | –83 | – |
| Netherlands | 6,090 | 4,262 | 46 | 56 | 1,039 | 1,039 | –3 | –55 |
| Paris | 4,678 | 3,465 | 23 | 22 | 667 | 519 | – | – |
| Finland, university cities | 4,217 | 3,180 | 47 | 28 | 1,095 | 97 | –97 | –3 |
| Madrid & Barcelona | 2,263 | 1,873 | 31 | 1 | 268 | 839 | – | –10 |
| Rest of Finland | 2,054 | 2,527 | 31 | 14 | 88 | – | –743 | –20 |
| Rest of Sweden | 2,001 | 1,886 | 31 | 7 | 46 | 1,073 | –46 | –1,073 |
| Rest of Europe | 3,933 | 3,033 | 6 | 3 | 541 | 1,600 | – | – |
| Total | 46,067 | 37,548 | 658 | 666 | 4,824 | 5,585 | –1,351 | –1,456 |
1) All rental revenue pertains to external tenants.
| 2021 Jan-Dec |
2020 Jan-Dec |
Jan-Dec 2019 |
2018 Jan-Dec |
2017 Jan-Dec |
2016 Jan-Dec |
|
|---|---|---|---|---|---|---|
| Property-related key figures | ||||||
| Property yield, % | 6.0 | 6.3 | 6.4 | 6.8 | 6.9 | 7.1 |
| Surplus ratio, % | 83 | 83 | 83 | 83 | 83 | 85 |
| Occupancy rate by area, % | 96 | 95 | 95 | 95 | 95 | 93 |
| Economic occupancy rate, % | 96 | 95 | 95 | 95 | 94 | 94 |
| Lettable area at the end of the period, 000 sqm | 3,759 | 3,480 | 3,022 | 2,850 | 2,489 | 2,312 |
| No. of properties at the end of the period | 673 | 673 | 553 | 512 | 495 | 440 |
| Financial key figures | ||||||
| Return on total capital, % | 6 | 7 | 7 | 7 | 7 | 7 |
| Return on equity, % | 37 | 18 | 24 | 24 | 30 | 33 |
| Average interest rate, % | 1.4 | 1.8 | 1.9 | 2.2 | 3.0 | 3.1 |
| Fixed-interest period incl. derivatives, years | 4.0 | 3.4 | 3.5 | 3.0 | 2.1 | 2.7 |
| Loan maturity, years | 4.3 | 3.4 | 3.8 | 3.6 | 3.1 | 3.6 |
| Equity/assets ratio, % | 50 | 48 | 48 | 46 | 42 | 38 |
| Debt ratio, % | 42 | 43 | 44 | 47 | 50 | 54 |
| Net debt/run rate EBITDA, multiple | 5.4 | 6.4 | 6.6 | 7.1 | 7.7 | 7.8 |
| Net debt/EBITDA, multiple | 5.8 | 6.4 | 6.6 | 7.4 | 8.1 | 8.7 |
| Interest coverage ratio, multiple | 6.5 | 5.7 | 4.9 | 4.2 | 3.7 | 3.4 |
| Interest coverage ratio, EMTN programme, multiple | 9.4 | 6.4 | 5.3 | 4.3 | 4.0 | 3.7 |
| Data per Class A and B share (excluding 2,000,000 repurchased Class B shares) |
||||||
| Price of Class B share at the end of the period, SEK | 305.00 | 169.60 | 136.20 | 65.70 | 49.10 | 40.87 |
| Net asset value, SEK | 97.92 | 66.38 | 56.77 | 44.22 | 35.04 | 26.89 |
| Equity, SEK | 83.93 | 55.19 | 46.86 | 35.70 | 27.15 | 19.61 |
| Equity after dilution, SEK | 83.84 | 55.09 | 46.78 | 35.67 | 27.13 | 19.57 |
| Earnings, SEK | 30.09 | 10.80 | 12.15 | 9.24 | 8.86 | 7.27 |
| Earnings after dilution, SEK | 30.04 | 10.78 | 12.13 | 9.24 | 8.85 | 7.25 |
| Profit from property management, SEK | 8.01 | 6.63 | 5.51 | 4.31 | 3.71 | 2.99 |
| Profit from property management after dilution, SEK | 7.99 | 6.62 | 5.51 | 4.31 | 3.70 | 2.98 |
| Cash flow, SEK | 6.59 | 6.10 | 4.86 | 3.95 | 3.27 | 2.57 |
| Cash flow after dilution, SEK | 6.58 | 6.09 | 4.86 | 3.95 | 3.26 | 2.56 |
| Dividend per share, SEK (proposed for 2021) | 2.15 | 1.65 | 1.30 | 1.00 | 0.90 | 0.72 |
| No. at end of period, millions | 317.7 | 317.3 | 317.1 | 316.8 | 316.5 | 316.5 |
| No. at end of period after dilution, millions | 318.0 | 317.9 | 317.5 | 317.1 | 316.7 | 317.1 |
| Average no., millions | 317.5 | 317.1 | 316.9 | 316.7 | 316.5 | 316.5 |
| Average no. after dilution, millions | 318.0 | 317.7 | 317.3 | 316.9 | 317.0 | 317.2 |
| Data per Class D share | ||||||
| Share price at the end of period, SEK | 33.40 | 32.05 | 36.35 | 31.70 | 29.92 | 28.30 |
| Equity, SEK | 35.00 | 35.00 | 35.00 | 35.00 | 35.00 | 35.00 |
| Earnings, SEK | 2.00 | 2.00 | 2.00 | 2.00 | 2.00 | 2.00 |
| Dividend per share, SEK (proposed for 2021) | 2.00 | 2.00 | 2.00 | 2.00 | 2.00 | 2.00 |
| No. at end of period, millions | 126.3 | 125.8 | 107.8 | 101.9 | 63.6 | 18.2 |
| Average no., millions | 126.2 | 118.4 | 105.7 | 83.0 | 43.1 | 2.9 |
1) Definitions of key performance indicators are provided on pages 30–31
At the end of the period, Sagax had 22,978 (19,807) shareholders. Sagax's market capitalisation amounted to SEK 101,048 M (58,412). In accordance with the resolution of an Extraordinary General Meeting, Sagax redeemed all preference shares in April 2021. Due to the exercise of warrants under the 2018/2021 Incentive Plan, Sagax issued 374,065 Class B common shares in June.
A total of 445,914,924 shares were outstanding at the end of the period, of which 2,000,000 were Class B treasury shares. Following the redemption of preference shares, Sagax has three classes of shares: Class A, B and D common shares. The shares are listed on Nasdaq Stockholm, Large Cap.
According to the Articles of Association, each Class D share is entitled to five times the total dividend on Class A and B shares, although not more than SEK 2.00 per share annually.
Sagax has three warrant plans for the company's employees. In total, Sagax's employees hold warrants corresponding to 0.5% of the number of Class A and B shares outstanding. The company's CEO and Board Members do not participate in the plans. These plans are valid for three years, and encompass the periods 2019-2022, 2020-2023 and 2021-2024. The subscription price corresponds to the price paid for the Class B share
at the start of the warrant plan, converted using the average share price trend for the listed property companies in accordance with Carnegie's property index (CREX) during the corresponding period. Accordingly, the warrants will have a value on condition that the price performance of the Sagax share exceeds the average for the listed property companies during each three-year period.
Profit from property management per Class B share after dilution on a rolling 12-month basis amounted to SEK 7.99 (6.62), which, compared with the share price of the Class B share at the end of the period, corresponded to a multiple of 38.2 (25.5).
Equity per Class A and B share after dilution amounted to SEK 83.93 (55.19). NAV per Class A and B share amounted to SEK 97.92 (66.38). The share price for the Class B share at the end of the period was 364% (308) of equity per Class B share and 311% (255) of NAV per Class B share.
| Price paid, SEK | Turnover rate on an annual basis, % |
Average trading volume per trading day, SEK M |
|||||
|---|---|---|---|---|---|---|---|
| 31 Dec 2021 | 31 Dec 2020 | 31 Dec 2021 | 31 Dec 2020 | 31 Dec 2021 | 31 Dec 2020 | ||
| Class A shares | 303.00 | 168.50 | 3 | 4 | 1.0 | 0.5 | |
| Class B shares | 305.00 | 169.60 | 44 | 22 | 134.6 | 33.4 | |
| Class D shares | 33.40 | 32.05 | 55 | 58 | 9.0 | 8.3 |
| Key performance indicators per Class B share | ||||||
|---|---|---|---|---|---|---|
| 2021 31 Dec |
2020 31 Dec |
2019 31 Dec |
2018 31 Dec |
2017 31 Dec |
2016 31 Dec |
|
| Share price at the end of period, SEK | 305.00 | 169.60 | 136.20 | 64.70 | 49.10 | 40.87 |
| Profit from property management after dilution, SEK | 7.99 | 6.62 | 5.51 | 4.30 | 3.70 | 2.98 |
| Cash flow after dilution, SEK1) | 6.58 | 6.09 | 4.86 | 3.94 | 3.26 | 2.56 |
| Equity after dilution, SEK | 83.84 | 55.11 | 46.78 | 35.67 | 27.13 | 19.57 |
| Net asset value, SEK | 97.92 | 66.38 | 56.77 | 44.22 | 35.04 | 26.89 |
| Share price/Profit from property management, multiple | 38.2 | 25.6 | 24.7 | 15.0 | 13.3 | 13.7 |
| Share price/Cash flow, multiple1) | 46.4 | 27.9 | 28.0 | 16.4 | 15.1 | 16.0 |
| Share price/Equity, % | 364 | 308 | 292 | 182 | 181 | 209 |
| Share price/Net asset value, % | 311 | 255 | 240 | 147 | 140 | 152 |
1) Cash flow pertains to cash flow from operating activities before changes in working capital.
Share price in relation to equity and Net asset value
| Ownership structure, 31 December 2021 | Share of voting |
Shareholders by | Share of voting |
||||
|---|---|---|---|---|---|---|---|
| No. of shares | No. of shareholders | Shareholder category | No. | power | country | No. | power |
| 1–500 | 16,672 | Private individuals | Sweden | 21,477 | 83% | ||
| 501–1,000 | 1,814 | residing in Sweden | 20,779 | 8% | Switzerland | 50 | 6% |
| 1,001–2,000 | 1,332 | Private individuals | USA | 23 | 3% | ||
| 2,001–5,000 | 1,339 | residing abroad | 117 | 0% | |||
| 5,001–10,000 | 634 | Companies/institutions | Ireland | 73 | 2% | ||
| 10,001–50,000 | 785 | in Sweden Companies/institutions |
698 | 75% | UK | 32 | 1% |
| 50,001– | 402 | abroad | 1,384 | 17% | Other | 1,323 | 4% |
| Total | 22,978 | Total | 22,978 | 100% | Total | 22,978 | 100% |
| No. of shares | Percentage of | |||||
|---|---|---|---|---|---|---|
| Class A shares | Class B shares | Class D shares | Share capital | Votes2) | Verification date | |
| David Mindus and companies | 10,848,800 | 66,917,112 | 1,192,228 | 17.7% | 25.8% | 31 Dec 2021 |
| Staffan Salén and companies | 4,264,928 | 32,970,660 | 95,600 | 8.4% | 11.0% | 31 Dec 2021 |
| Rutger Arnhult and companies | 5,797,053 | 6,342,938 | 17,385,738 | 6.6% | 11.9% | 22 Oct 2021 |
| Fourth Swedish National Pension Fund |
5,716 | 16,267,423 | 10,021,678 | 5.9% | 3.8% | 31 Dec 2021 |
| Third Swedish National Pension Fund |
– | 24,927,658 | – | 5.6% | 3.6% | 31 Dec 2021 |
| SEB Fonder | – | 12,578,849 | – | 2.8% | 1.8% | 31 Dec 2021 |
| Avanza Pension | 49,699 | 737,312 | 11,229,666 | 2.7% | 1.8% | 31 Dec 2021 |
| Vanguard | – | 5,898,303 | 3,667,507 | 2.1% | 1.4% | 30 Nov 2021 |
| Länsförsäkringar Fonder | – | 8,529,678 | – | 1.9% | 1.2% | 31 Dec 2021 |
| BlackRock | – | 6,466,097 | 10,729 | 1.5% | 0.9% | 31 Dec 2021 |
| Filip Engelbert and companies | 241,000 | 1,869,784 | 4,200,000 | 1.4% | 1.2% | 31 Dec 2021 |
| Swedbank Robur Fonder | 500,000 | 5,651,800 | – | 1.4% | 1.6% | 31 Dec 2021 |
| Norges Bank | – | 3,793,967 | 1,775,800 | 1.2% | 0.8% | 31 Dec 2021 |
| Erik Selin and companies | 1,081,866 | 2,367,116 | 1,656,868 | 1.1% | 2.2% | 31 Dec 2021 |
| ODIN Fonder | – | 3,955,739 | – | 0.9% | 0.6% | 31 Dec 2021 |
| Handelsbanken Fonder | – | 3,100,570 | 539,803 | 0.8% | 0.5% | 31 Dec 2021 |
| AMF Pension & Fonder | – | 2,875,326 | – | 0.6% | 0.4% | 31 Dec 2021 |
| Johan Thorell and companies | 203,254 | 2,332,540 | 158,912 | 0.6% | 0.7% | 31 Dec 2021 |
| Folksam | – | 2,661,471 | – | 0.6% | 0.4% | 31 Dec 2021 |
| Nordnet Pensionsförsäkring | 19,466 | 395,684 | 2,186,855 | 0.6% | 0.4% | 31 Dec 2021 |
| Total 20 largest shareholders | 23,011,782 | 210,640,027 | 54,121,384 | 64.5% | 72.2% | |
| Other shareholders | 3,821,072 | 80,180,714 | 72,139,945 | 35.0% | 27.8% | |
| Sub-total | 26,832,854 | 290,820,741 | 126,261,329 | 99.6% | 100.0% | |
| Shares held by AB Sagax | – | 2,000,000 | – | 0.4% | 0.0% | |
| Total | 26,832,854 | 292,820,741 | 126,261,329 | 100.0% | 100.0% | |
| – of which, Board and employees | 15,741,274 | 108,349,815 | 6,650,092 | 29.3% | 39.7% |
1) The ownership structure on 31 December 2021 is based on information from Euroclear Sweden and Modular Finance. 2) Voting rights for treasury shares held by AB Sagax have been excluded.
| Voting rights and proportion of share capital | |||||
|---|---|---|---|---|---|
| Class of share | No. | Voting rights per share |
No. of votes | Proportion of votes |
Proportion of share capital |
| Class A shares | 26,832,854 | 1.0 | 26,832,854.00 | 39% | 6% |
| Class B shares | 292,820,741 | 0.1 | 29,282,074.10 | 43% | 66% |
| Class D shares | 126,261,329 | 0.1 | 12,626,132.90 | 18% | 28% |
| Total | 445,914,924 | 68,741,061.00 | 100% | 100% |
To prepare the accounts based on generally accepted accounting policies, company management must make judgements and assumptions that affect asset and liability items, revenue and expense items recognised in the accounts and other information provided. The actual outcome may differ from these judgements. Sagax is also exposed to various risks that may be of significance to the company's future business, earnings and financial position.
The valuation of investment properties can be significantly affected by the judgments and assumptions made by company management. To reduce the risk of incorrect valuations, Sagax has engaged authorised external valuation companies to assess the market value of the majority of the properties as of 31 December 2021. When valuing properties, the constant existence of uncertainties regarding the assumptions made must be taken into account.
Sagax prioritises leasing to tenants with a high credit rating and long-term leases, despite these entailing slightly lower immediate earnings. The intention is to reduce the risk of rent losses and the risk of vacancies.
The geographic distribution of Sagax's property portfolio and the industries of its tenants are highly diversified. Sagax's lease structure of many small leases help reduce the risks of vacancies and rent losses.
Sagax's financial expenses comprise the single largest expense for the Group. To reduce Sagax's exposure to rising interest rates, the Group has a significant number of its interest expenses from fixed-rate loans. To limit interest-rate risk for loans at floating interest rates, interest-rate swaps and interestrate caps are used. Sagax's funding primarily comprises equity and interest-bearing liabilities. Sagax endeavours to secure a long, average remaining term of interest-bearing liabilities in a bid to limit its refinancing risk, defined as the risk that refinancing existing debt cannot take place on reasonable terms. The company's long-term funding comprises listed bonds and bank loans. The complete terms and conditions for the bond loans are available at www.sagax.se.
The amounts in the consolidated balance sheet are partly exposed to exchange rate fluctuations, particularly for the EUR. Net exposure on 31 December 2021, assets less liabilities in EUR, amounted to SEK 6,729 M (8,496). In accordance with IAS 21, the currency effects for foreign operations and hedge accounting are recognised in Other comprehensive income. Other currency effects are recognised in profit or loss.
The COVID-19 pandemic resulted in higher uncertainty, which meant that Sagax commented on risks and effects related to the pandemic in a separate section. The impact on the company was limited and specific risks related to the pandemic are no longer deemed to exist in the future, which is why this section is no longer included.
Sagax's other risks are described in the 2020 Annual Report, on pages 45-48.
| Sensitivity analysis for property values | |||||||
|---|---|---|---|---|---|---|---|
| –20% | –10% | 0% | +10% | +20% | |||
| Value change, SEK M | –9,213 | –4,607 | 0 | 4,607 | 9,213 | ||
| Debt ratio, % | 49 | 45 | 42 | 39 | 37 |
| –10% | –5% | 0% | +5% | +10% | |
|---|---|---|---|---|---|
| Occupancy rate, % Interest coverage |
86 | 91 | 96 | N/A | N/A |
| ratio, % | 633 | 642 | 651 | N/A | N/A |
| Change | Value change, SEK M |
|
|---|---|---|
| Yield requirement | +/– 0.25% points | –1,412/+1,524 |
| Cost of capital | +/– 0.25% points | –953/+972 |
| Rental revenue | +/–5% | +1,958/–2,079 |
| Property expenses | +/–5% | –290/+276 |
Sagax's exposure to material risks in the company's operations is presented below.
| Amounts in SEK M | Change | Effect on profit from property management, annual basis |
Effect on profit after tax, annual basis |
Effect on equity |
|---|---|---|---|---|
| Economic occupancy rate | +/–1% point | +/–34 | +/–28 | +/–28 |
| Rental revenue | +/–1% | +/–33 | +/–27 | +/–27 |
| Property expenses | +/–1% | –/+6 | –/+4 | –/+4 |
| Interest expenses for liabilities in SEK including fixed income derivatives |
+/–1% point | –12/+12 | –10/+10 | –10/+10 |
| Interest expenses for liabilities in EUR including fixed income derivatives |
+/–1% point | –11/+10 | –9/+8 | –9/+8 |
| Change in SEK/EUR exchange rate2) | +/– 10% | +/–168 | +/–133 | +/–673 |
| Changed rent level for contract maturity in 2022 | +/– 10% | +/–49 | +/–40 | +/–40 |
1) Excluding shares in profit of joint ventures and associated companies.
2) Sagax's net exposure to the SEK/EUR exchange rate comprises assets and liabilities recognised in EUR, in addition to revenue and expenses in EUR.
This condensed interim report has been prepared in accordance with International Accounting Standards (IAS) 34 Interim Financial Reporting. The term "IFRS" in this report means application of the International Financial Reporting Standards (IFRS), as adopted by the EU, and the interpretations of the International Financial Reporting Interpretations Committee (IFRIC). The accounting policies and calculation methods are the same as those applied in the 2020 Annual Report and are to be read together with this Annual Report.
There are no amendments to IFRS in 2021 that are deemed to have any material impact on the company's financial statements.
The alternative performance measure "interest-bearing liabilities" has been replaced with "interest-bearing liabilities according to the balance sheet," which is not an alternative performance measure. "Interest-bearing liabilities according to the balance sheet" includes allocated borrowing costs. On 31 December 2020, "interest-bearing liabilities according to the balance sheet" were SEK 76 M lower than "interest-bearing liabilities." Comparative figures and the key performance indicators have been restated. The key performance indicators are unchanged apart from Net debt/run rate EBITDA, which was changed from a multiple of 6.5 to a multiple of 6.4.
Rounding-off differences may occur.
On 1 February, 2022 it was announced that Sagax has through seven separate transactions acquired 9 properties for the equivalent of SEK 452 million. The properties comprise a lettable area of 42,900 square metres, mainly consisting of premises for warehousing and light industrial purposes. The annual rental income amounts to the equivalent of SEK 34 million. The occupancy rate is 98% and the average remaining lease term is 4.5 years. Closing will take place during the first quarter of 2022. The acquisitions will be reported in Sagax's segments Netherlands (SEK 211 million), Helsinki (SEK 176 million), Madrid & Barcelona (SEK 13 million) and Rest of Europe (SEK 52 million).
The Board of Directors and CEO give their assurance that this interim report provides a fair overview of the company's and the Group's operations, financial position and earnings and describes significant risks and uncertainties faced by the company and the companies included in the Group.
Stockholm, 11 February 2022 AB SAGAX (publ) Corporate Registration Number 556520-0028
Staffan Salén Johan Cederlund Filip Engelbert Chairman of the Board Board member Board member
David Mindus Johan Thorell Ulrika Werdelin CEO and Board member Board member Board member
This year-end report has not been reviewed by the company's auditors.
This constitutes information that AB Sagax (publ) is legally obliged to publish under the EU's Market Abuse Regulation. The information was released for publication on 11 February 2022 at 8:30 a.m. CET.
| 2021 Annual Report | Week 16 2022 |
|---|---|
| Interim Report January-March 2022 | 11 May 2022 |
| Annual General Meeting 2021 | 11 May 2022 |
| Interim Report January-June 2022 | 14 July 2022 |
| Interim Report January-September 2022 | 27 October 2022 |
| March 2022 | |
|---|---|
| ■ Final day for trading including dividend rights | 29 March 2022 |
| ■ First day for trading excluding dividend rights | 30 March 2022 |
| ■ Record date for dividend payment | 31 March 2022 |
| ■ Expected payment date by Euroclear1) | 5 April 2022 |
1) Payment is made on the third banking day following the record date for Swedish issuers. Sagax is unable to affect this date.
David Mindus, CEO +46 8 545 83 540, [email protected]
Agneta Segerhammar, CFO +46 8 545 83 540, [email protected]
Visit us at www.sagax.se.
Sagax applies the European Securities and Market Authority's (ESMA) Guidelines on the Alternative Performance Measures. Alternative performance measures refer to financial measures of historical or future earnings trends, financial position, financial results or cash flows that are not defined or stated in the applicable rules for financial reporting, which in Sagax's case is IFRS. The basis of the alternative performance measures provided is that they are used by company management to assess the financial performance and thus are considered to provide valuable information to shareholders and other stakeholders.
The table below presents definitions of Sagax's key performance indicators. The calculation of alternative performance measures is described separately on the following pages.
| Key performance indicators |
Description | Reason for alternative performance measure |
|---|---|---|
| Cash flow per Class A and B share |
Profit before tax adjusted for items not included in cash flow less tax paid in relation to the average number of Class A and B shares. Dividends on Class D shares and preference shares for the period have also been deducted from profit before tax. Dividends received from joint ventures and associated companies have been added to profit before tax. |
The KPI shows the amount of cash flow for the period that can be considered to be attribut able to owners of Class A and Class B shares. |
| Debt ratio | Interest-bearing liabilities at the end of the period in relation to total assets at the end of the period. |
The KPI shows financial risk. |
| Dilution | Dilution due to outstanding warrants has been calculated, in line with IAS 33, as the number of Class A and B shares to be issued to cover the difference between the strike price and market price for all potential Class A and B shares (warrants) outstanding, insofar as it is probable that they will be utilised. |
Not an alternative performance measure. |
| Earnings per Class A and B share |
Profit in relation to the average number of Class A and B shares after taking into account the portion of profit for the period represented by dividends on Class D shares and preference shares. |
IFRS performance measure. |
| Earnings per Class D share Class D shares are entitled to five times the total dividend on Class A and B shares, although not more than SEK 2.00 per share annually. |
The KPI shows the shareholders' share of profit. | |
| EBITDA | Net operating income less central administration costs plus dividends received from joint ventures and associated companies. |
Sagax uses EBITDA so that the EBITDA/Net debt KPI shows financial risk. |
| Economic occupancy rate | Contractual annual rent directly after the end of the period as a percentage of rental value directly after the end of the period. |
The KPI shows the economic degree of utilisa tion of the Group's properties. |
| Equity/assets ratio | Equity in relation to total assets. | The KPI shows financial risk. |
| Equity per Class A and B share |
Equity at the end of the period in relation to the number of Class A and B shares at the end of the period after taking into account equity attributable to Class D shares and preference shares. |
The KPI shows the owner's share of equity. |
| Equity per Class D share | Equity at the end of the period in relation to the number of common shares at the end of the period after taking into account equity attributable to preference shares. Equity is restricted to SEK 35.00 per Class D share. |
The KPI shows the owner's share of equity. |
| Equity per preference share |
Equity per preference share corresponds to the preferential right of the prefer ence share on liquidation of the company (SEK 30 per preference share) and the share's accumulated preferential right to dividends (SEK 2 per year). |
The KPI shows the owner's share of equity. |
| EURIBOR | EURIBOR, or the Euro Interbank Offered Rate, is a daily reference rate based on the average of the interest rates at which euro interbank term deposits are being offered by one prime bank to another within the EMU zone. |
Not an alternative performance measure. |
| Fixed income derivatives | Agreements on lending rates that may include the factors of time, inflation and/ or maximum interest rates. Usually signed to hedge interest rates for inter est-bearing loans. |
Not an alternative performance measure. |
| IFRS | International Financial Reporting Standards. International Financial Reporting Standards (IFRS), to be applied for consolidated financial statements by compa nies whose securities are listed on a regulated market. |
Not an alternative performance measure. |
| Interest coverage ratio | Profit from property management, excluding profit from joint ventures and associated companies but including dividends from joint ventures, after reversal of financial expenses in relation to financial expenses. |
The KPI shows financial risk. |
| Interest coverage ratio, EMTN programme |
Profit from property management after reversal of financial income and expens es as a percentage of net financial items. |
The KPI shows financial risk. |
| Interest-rate swaps | An agreement between two parties to swap interest rate conditions on loans in the same currency. The swap entails that one party exchanges its floating inter est rate for a fixed rate, while the other party receives a fixed rate in exchange for a floating rate. The purpose of an interest-rate swap is to reduce interest-rate risk. |
Not an alternative performance measure. |
| Joint ventures | Partnership form whereby several owners have a shared controlling influence. |
Not an alternative performance measure. |
| Key performance indicators |
Description | Reason for alternative performance measure |
|---|---|---|
| Net asset value | Recognised equity according to the balance sheet with reversal of reserves for fixed income derivatives, deferred tax on temporary differences on property values and deferred tax on reserves for fixed income derivatives. |
An established indicator of the Group's net asset value that facilitates analyses and compar isons with EPRA NAV. |
| Net debt | Interest-bearing liabilities less interest-bearing assets, cash and cash equivalents, and listed shares. |
The KPI shows the Group's indebtedness. |
| Net debt according to EMTN programme |
Interest-bearing liabilities less listed securities and cash and cash equivalents. |
The KPI shows the Group's indebtedness. |
| Net debt according to EMTN programme/Total assets |
Interest-bearing liabilities less listed securities and cash and cash equivalents in relation to total assets. |
The KPI shows financial risk. |
| Net debt/Total assets | Interest-bearing liabilities less interest-bearing assets, cash and cash equivalents, and listed shares as a percentage of total assets. |
The KPI shows financial risk. |
| Net investments | The net of property acquisitions and investments in the current property portfo lio, as well as sales of properties. |
The KPI shows the investment volume. |
| Occupancy rate by area | Contracted area directly after the end of the period as a percentage of total lettable area directly after the end of the period. |
The KPI shows the occupancy situation. |
| Profit from property management |
Profit excluding changes in value and tax. | An indicator of the earnings generation in the operations, excluding changes in value. |
| Profit from property man agement per Class A and B share after dilution |
Profit from property management for the period reduced by dividends on Class D shares and preference shares, divided by the average number of Class A and B shares after dilution. |
An indicator of the earnings generation of the assets, excluding the changes in value accruing to holders of Class A and B shares. |
| Property | Pertains to properties held under title or site leasehold. | Not an alternative performance measure. |
| Property yield | Net operating income for the period (including property administration) with add-back of site leasehold fees, recalculated to 12 months, adjusted for the holding periods of the properties during the period as a percentage of the carrying amounts of the properties at the end of the period. |
The KPI shows the earnings generation of the operations before financial expenses and cen tral administration costs are taken into account. |
| Rental revenue, comparable portfolios |
Rental revenue from properties that were included in the portfolio for the entire reporting period and the entire comparative period. Project properties and prop erties that were acquired or sold are not included. |
The KPI shows the trend in rental revenue excluding non-recurring effects, such as prematurely vacating premises, not impacted by acquired and sold properties. |
| Rental value | The contractual annual rent applicable directly after the end of the period, with supplements for estimated market rents for vacant premises. |
The KPI shows the Group's income potential. |
| Return on equity | Profit for the period, recalculated to 12 months, as a percentage of average equity (opening and closing balances)/2 for the period. |
The KPI shows how shareholders' capital yields interest during the period. |
| Return on total capital | Profit for the period, recalculated to 12 months, after net financial items after reversal of financial expenses as a percentage of average total assets for the period. |
The KPI shows the ability to generate earnings on the Group's assets, excluding financing costs. |
| Run rate EBITDA | Net operating income according to current earnings capacity less central administration costs plus dividends received from joint ventures and associated companies. |
Sagax uses EBITDA so that the EBITDA/Net debt, run rate KPI shows financial risk. |
| Run rate yield | Net operating income (including property administration) according to current earnings capacity with add-back of site leasehold fees, as a percentage of the carrying amounts of the properties at the end of the period. |
The KPI shows the earnings generation of the operations before financial expenses and cen tral administration costs are taken into account. |
| Secured liabilities/Total assets |
Liabilities secured with pledged assets as a percentage of total assets. | The KPI shows financial risk for bond holders. |
| STIBOR | STIBOR, or Stockholm Interbank Offered Rate, a daily reference rate based on the average of the interest rates at which banks offer to lend unsecured funds to other banks in SEK in the Swedish wholesale money market. |
Not an alternative performance measure. |
| Surplus ratio | Net operating income for the period as a percentage of rental revenue for the period. |
The KPI shows the profitability of the properties. |
| Total return on shares | Total of the change in the share price during the period and the dividend paid during the period as a percentage of the share price at the end of the preceding year. |
The KPI shows the total return that accrues to shareholders. |
| Total yield on property | Total of yield and property revaluations during the period as a percentage of the closing property value adjusted for revaluations for the period. |
The KPI shows earnings generation and value growth for the properties for a period. |
| Triple net lease | A type of lease whereby the tenant pays, in addition to the rent, all costs incurred on the property that would normally have been paid by the property owner. These include operating expenses, maintenance, property tax, site lease hold fees, insurance, property caretaking, etc. |
Not an alternative performance measure. |
| Amounts in SEK M unless otherwise stated |
2021 Jan-Dec |
2020 Jan-Dec |
|---|---|---|
| Return on equity | ||
| Profit after tax | 9,807 | 3,711 |
| Addition for translation to annual value | – | – |
| Average equity | 26,766 | 20,855 |
| Return on equity | 37% | 18% |
| Return on total capital | ||
| Profit from property management | 2,805 | 2,389 |
| Addition for translation to annual value | – | – |
| Financial expenses | 447 | 481 |
| Addition for translation to annual value | – | – |
| Profit before financial expenses | 3,252 | 2,870 |
| Average total capital | 54,725 | 43,388 |
| Return on total capital | 6% | 7% |
| Occupancy rate by area | ||
| Contracted area, '000s sqm | 3,625 | 3,312 |
| Total lettable area, '000s sqm | 3,759 | 3,480 |
| Occupancy rate by area | 96% | 95% |
| Debt ratio | ||
| Interest-bearing liabilities | 26,354 | 19,828 |
| Total assets | 62,472 | 46,622 |
| Debt ratio | 42% | 43% |
| Property yield | ||
| Net operating income | 2,573 | 2,397 |
| Add-back of site leasehold fees | –26 | –25 |
| Addition for translation to annual value | – | – |
| Holding adjustment, acquisitions/divestments | 139 | 57 |
| Currency translation to closing rate | 44 | –67 |
| Adjusted net operating income | 2,730 | 2,362 |
| Carrying amount of properties | 46,067 | 37,548 |
| Property yield | 6.0% | 6.3% |
| EBITDA rolling 12 months | ||
| Net operating income | 2,573 | 2,397 |
| Central administration Dividends from joint ventures and |
–147 | –132 |
| associated companies | 373 | 424 |
| EBITDA | 2,799 | 2,689 |
| Equity per Class A and B share | ||
| Equity | 31,079 | 22,452 |
| Equity attributable to preference and | ||
| Class D shares Adjusted equity attributable to Class A |
–4,419 | –4,940 |
| and B shares | 26,660 | 17,512 |
| No. of shares | 317,653,595 317,279,530 | |
| No. of shares after dilution | 317,984,595 317,891,458 | |
| Equity per Class A and B share, SEK | 83.93 | 55.19 |
| Equity per Class A and B share after dilution, SEK | 83.84 | 55.09 |
| Economic occupancy rate | ||
| Contractual annual rent | 3,324 | 2,865 |
Rental value 3,459 3,024 Economic occupancy rate 96% 95%
| Amounts in SEK M unless otherwise stated |
2021 Jan-Dec |
2020 Jan-Dec |
|---|---|---|
| Run rate yield | ||
| Net operating income according to | ||
| current earnings capacity | 2,761 | 2,370 |
| Add-back of site leasehold fees | –26 | –25 |
| Adjusted net operating income | 2,735 | 2,345 |
| Carrying amount of properties | 46,067 | 37,548 |
| Run rate yield | 5.9% | 6.2% |
| Run rate EBITDA | ||
| Net operating income according to current | ||
| earnings capacity | 2,761 | 2,370 |
| Central administration | –147 | –132 |
| Dividends from joint ventures and | ||
| associated companies | 373 | 424 |
| Run rate EBITDA | 2,987 | 2,662 |
| Profit from property management | ||
| Profit after tax | 9,807 | 3,711 |
| Tax | 1,294 | 891 |
| Changes in value | –8,297 | –2,213 |
| Profit from property management | 2,805 | 2,389 |
| Profit from property management per Class A and B share after dilution |
||
| Profit from property management | 2,795 | 2,389 |
| Dividends attributable to preference and | ||
| Class D shares | –253 | –285 |
| Adjusted profit from property management | 2,543 | 2,104 |
| Profit from property management per Class A and B share after dilution, SEK |
7.99 | 6.62 |
| Profit from property management per Class A and B shares, rolling 12 months |
||
| Profit from property management, rolling 12 | ||
| months | 2,805 | 2,389 |
| Dividends attributable to preference and Class D | ||
| shares, rolling 12 months | –253 | –285 |
| Adjusted profit from property management | 2,552 | 2,104 |
| No. of Class A and B shares after dilution, rolling 12 months |
318,010,050 317,691,982 | |
| Profit from property management per Class A and B share, current period, rolling 12 months |
7.99 | 6.62 |
| Profit from property management per | ||
| Class A and B share, preceding period, rolling 12 months |
6.62 | 5.52 |
| Annual percentage growth rate, rolling 12 months |
21% | 20% |
| Rental revenue, comparable portfolios1) | ||
| Rental revenue | 3,100 | 2,898 |
| Acquired and sold properties | –558 | –324 |
| Currency adjustment | – | 63 |
| Other adjustment | –6 | – |
| Rental revenue, comparable portfolios excluding | ||
| currency effects | 2,535 | 2,511 |
1) The preceding period has been adjusted based on the assumption that the exchange rate is the same as in the current period.
Amounts in SEK M unless otherwise stated
| Amounts in SEK M unless otherwise stated |
2021 Jan-Dec |
2020 Jan-Dec |
|---|---|---|
| Cash flow per Class A and B share | ||
| Profit before tax | 10,543 | 4,330 |
| Items not affecting cash flow | –8,051 | –2,055 |
| Tax paid | –146 | –55 |
| Dividends attributable to preference and | ||
| Class D shares | –253 | –285 |
| Cash flow | 2,093 | 1,935 |
| Cash flow per Class A and | ||
| B share after dilution, SEK | 6.58 | 6.09 |
| Net debt | ||
| See page 12. | ||
| Net debt according to EMTN programme | ||
| Interest-bearing liabilities | 26,354 | 19,828 |
| Cash and cash equivalents and listed shares | –9,464 | –2,164 |
| Net debt according to EMTN programme | 16,890 | 17,664 |
| Net debt according to EMTN programme/Total assets | ||
| Net debt according to EMTN programme | 16,890 | 17,664 |
| Total assets | 62,472 | 46,622 |
| Net debt according to EMTN programme/ | ||
| Total assets | 27% | 38% |
| Net debt/EBITDA | ||
| Net debt | 16,214 | 17,114 |
| EBITDA rolling 12 months | 2,799 | 2,689 |
| Net debt/EBITDA | 5.8x | 6.4x |
| Net debt/run rate EBITDA | ||
| Net debt | 16,214 | 17,114 |
| EBITDA, run rate | 3,006 | 2,662 |
|---|---|---|
| Net debt/EBITDA run rate | 5.4x | 6.4x |
| Net debt/Total assets | ||
| Net debt | 16,214 | 17,114 |
| Total assets | 62,472 | 46,622 |
| Net debt/Total assets | 26% | 37% |
| Earnings per Class A and B share1) | ||
| Profit after tax | 9,807 | 3,711 |
| Dividends attributable to | ||
| preference and Class D shares | –253 | –285 |
| Adjusted profit after tax | 9,554 | 3,426 |
| Earnings per Class A and B share after dilution, SEK |
30.04 | 10.78 |
Interest coverage ratio Profit from property management 2,805 2,389 Reversal of profit from property management joint ventures and associated companies –713 –565 Dividend from joint ventures and associated companies 373 424 Financial expenses 447 481 Adjusted profit from property management before financial expenses 2,912 2,729 Interest coverage ratio 6.5x 5.7x Interest coverage ratio, EMTN programme Profit from property management 2,805 2,389 Net financial items 334 442 Profit from property management before net financial items 3,139 2,831 Interest coverage ratio 9.4 x 6.4x Equity/assets ratio Equity 31,079 22,452 Total assets 62,472 46,622 Equity/assets ratio 50% 48% Net asset value Equity 31,079 22,452 Equity attributable to preference and Class D shares –4,419 –4,940 Reversal of derivatives 74 118 Reversal of deferred tax, temporary differences 3,383 2,590 Reversals due to joint ventures 1,019 881 Net asset value 31,136 21,101 NAV per Class A and B share after dilution, SEK 97.92 66.38 Secured liabilities/Total assets Secured liabilities 189 5,086 Total assets 62,472 46,622 Secured liabilities/Total assets 0% 11% Surplus ratio Net operating income 2,573 2,397 Rental revenue 3,100 2,898 Surplus ratio 83% 83%
2021 Jan-Dec
2020 Jan-Dec
1) IFRS performance measure.
AB Sagax is a property company whose business concept is to invest in commercial properties, primarily in the warehouse and light industry segment. Sagax's property holdings on 31 December 2021 amounted to 3,759,000 square metres, distributed between 673 properties. AB Sagax (publ) is listed on Nasdaq Stockholm, Large Cap. More information is available at www.sagax.se.
AB Sagax (publ), Engelbrektsplan 1, SE-114 34 Stockholm, Sweden Corp. Reg. No. 556520-0028 Tel: +46 8 545 83 540 www.sagax.se
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