Quarterly Report • Oct 27, 2023
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 industrial segment
Profit from property management for 2023, 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 3,900 M. The previously submitted forecast amounted to SEK 3,800 M and was presented in the Interim Report January-June 2023.
| Selected key performance indicators1)2) | ||||||||
|---|---|---|---|---|---|---|---|---|
| 2023 Jan-Sep |
2022 Jan-Sep |
2022 Jan-Dec |
2021 Jan-Dec |
2020 Jan-Dec |
2019 Jan-Dec |
2018 Jan-Dec |
||
| Profit from property management per Class A and B share after dilution, SEK | 8.64 | 7.35 | 9.70 | 7.99 | 6.62 | 5.51 | 4.31 | |
| Change compared with preceding year, % | 18 | 23 | 21 | 21 | 20 | 28 | 16 | |
| Earnings per Class A and B share after dilution, SEK | 0.72 | 7.09 | 7.75 | 30.04 | 10.78 | 12.13 | 9.24 | |
| Dividend per Class A and B share, SEK | – | – | 2.70 | 2.15 | 1.65 | 1.30 | 1.00 | |
| Net debt/EBITDA, multiple | 6.5 | 7.6 | 7.1 | 5.8 | 6.4 | 6.6 | 7.4 | |
| Interest coverage ratio, multiple | 6.4 | 7.6 | 7.1 | 6.5 | 5.7 | 4.9 | 4.2 | |
| Debt ratio at the end of the period, % | 43 | 45 | 45 | 42 | 43 | 44 | 47 | |
| Properties' market value at the end of period, SEK M | 56,668 | 54,350 | 52,682 | 46,067 | 37,548 | 32,625 | 29,024 | |
| Yield, % | 6.4 | 5.7 | 5.8 | 6.0 | 6.3 | 6.4 | 6.8 |
1) Definitions of key performance indicators are provided on pages 33-34.
2) The calculation of alternative performance measures is provided on pages 35-36.
Sagax's business concept is to invest in commercial properties, mainly in the warehouse and light industrial segments.
Sagax's goal is to generate attractive risk-adjusted return for the company's shareholders. This is to be achieved by accomplishing the following operational targets:
Sagax has the following financial targets:
The table and charts below illustrate the outcome for the past five years in relation to the financial targets:
| Outcome rolling 12 months |
Five-year average |
|
|---|---|---|
| Return on equity, measured over a five-year period, shall exceed 15% per year |
2% | 19% |
| Profit from property management per Class A and B share shall increase by a minimum of 15% per year |
17% | 22% |
Sagax has a long-term "buy and hold" approach to its investments. Sagax does not engage in property trading activities other than occasional sales of properties that no longer meet the company's investment criteria. Sagax's property development activities are limited and projects are carried out primarily after they have been let.
To achieve the company's operational and financial targets the company has adopted the following strategies.
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 invests in commercial properties, mainly in the warehouse and light industrial segments. These property segments combine low rates of new construction with stable occupancy levels, generating stable cash flow and opportunities for long-term value creation. Sagax invests in add-on acquisitions and in existing properties.
In addition to direct investments Sagax invests in properties via joint ventures and associated companies. This enables the company to invest in markets that Sagax cannot reach successfully on its own. The indirect investments allow Sagax to team-up with specialised management teams and to leverage Sagax's general industry knowledge to develop attractive investments.
The financial structure of Sagax is designed with a clear focus on operating cash flow and interest coverage ratio. This is expected to create both good prerequisites for expansion and attractive return on equity.
The chart on page 4 shows that Sagax's cash flow from operating activities largely corresponds to its profit from property management. The difference is mainly due to joint ventures and associated companies, where dividends instead of profit from property management are recognised as cash flow from operating activities.
Sagax endeavours to have well-balanced fixed interest and loan maturity profiles to secure its operating cash flow. The company's interest-bearing debt mainly consists of senior unsecured bonds issued in the EUR market. Sagax also finances its operations via issuance of commercial paper in EUR and SEK. Sagax can also raise bank loans in EUR and in SEK when this is deemed to be advantageous. Moody's Investors Service has rated Sagax Baa2 with a stable outlook.
The company has three classes of shares: Class A, B and D common shares. The Class A and B shares participate fully in the company's profit or equity. The Class D shares participate in an annual dividend of
Profit from property management per Class A and B share
3 This document is an in-house translation of the Swedish Interim report. In the INTERIM REPORT JANUARY – SEPTEMBER 2023 event of discrepancies, the Swedish original will supersede the translation.
Financial target growth rate is 15% per year (right scale)
up to SEK 2.00 per share. The aim with the Class D shares is to attract investor categories that value stable and regular dividends while limiting dilution for the holders of common shares of Class A and B.
Sagax's long-term perspective applies to the company's asset management strategy. Sagax endeavours to attract reputable and creditworthy tenants. The company prioritises long-term customer relationships even if this entails foregoing higher rental levels. 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.
Sagax invests primarily in regions experiencing stable population growth with diversified business activities. The risk of a decline in occupancy rates and rent levels due to a weaker rental market is regarded as low due to the stable population growth and diversified business operations in these markets. Sagax's largest markets are Stockholm and Helsinki, which are regarded as offering favourable conditions for longterm growth.
The company mainly enters into net leases. This strategy protects the company's operating cash flow from increased expenses deriving from changes in property taxes, consumption levels or for utility rates.
The aim of Sagax's sustainability activities is to avoid short-term gains arising at the expense of negative longer-term consequences. 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:
0 750
Market value Lettable area
Heating and the use of electricity account for the largest share of properties' energy use. Sagax takes regular measures to reduce energy consumption. Sagax obtains sustainability ratings for new buildings that are constructed and is working to have existing buildings sustainability rated.
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 long-term 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 recruit and has the ability to retain highly skilled personnel. Sagax employees are expected to assume responsibility of their work duties and serve as good representatives of the company's values and culture.
Additional information on Sagax's sustainability activities is available in the sustainability report in Sagax's 2022 Annual Report.
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
10,000 20,000 30,000 40,000 50,000 60,000
In the third quarter, Sagax acquired a portfolio of 19 properties in Spain. The portfolio encompasses a total of 90,000 square metres of lettable area and is fully let.
The profit/loss and cash flow items below refer to the January to September 2023 period. Amounts for the balance-sheet items refer to the position at the end of the period. The comparative items refer to the year-earlier period and the amount at the end of the period last year.
Profit from property management rose 17% to SEK 2,972 M (2,530), of which joint ventures and associated companies accounted for SEK 698 M (606). Profit from property management increased following primarily property acquisitions, currency effects and rent indexation. Profit from property management per Class A and B share after dilution rose 18% to SEK 8.64 (7.35).
Changes in the value of properties impacted profit by SEK –1,680 M (3,521), of which SEK –726 M (1,000) referred to changes in value from joint ventures and associated companies. The changes in value were primarily due to changed capitalisation rates and inflation expectations.
Revaluation of financial instruments had an impact on profit of SEK –734 M (–2,615), of which SEK –616 M (–3,221) referred to the revaluation of listed shares.
Profit after tax for the period was SEK 420 M (2,445).
Rental revenue rose 16% to SEK 3,160 M (2,725). Revenue was primarily positively affected by property acquisitions, indexation and the strengthening of the EUR against the SEK. Rental revenue was negatively impacted by the sale of 36 properties in Spain.
During the period, rental revenue in comparable portfolios increased 6.5% (4.5) excluding currency effects. The segments with the largest increases were the Netherlands with 12.6%, Spain 8.7% and Sweden 7.8%. Other revenue amounted to SEK 12 M (28).
| 2023 | 2022 | |
|---|---|---|
| Amounts in SEK M | Jan-Sep | Jan-Sep |
| Rental revenue | 3,160 | 2,725 |
| Acquisitions and divestments | –298 | –205 |
| Currency adjustment1) | – | 168 |
| Total | 2,863 | 2,688 |
1) Adjustment of preceding period to neutralize currency rate impact.
Rental revenue
Average, rolling12 months Occupancy rate
%
Economic occupancy rate
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Change in rental revenue in comparable portfolio, excluding currency effects, compared to the same period previous year
The economic occupancy rate amounted to 96% (96). During the period, the vacancy value rose SEK 171 M (146) due to tenants vacating premises and declined SEK 151 M (139) following new lettings. Fixed-term rent discounts for new tenants increased SEK 11 M (7) to SEK 50 M (45) on an annual basis at the end of the period. Acquisitions and property divestments during the period increased the vacancy value by a net SEK 1 M (14). The total vacancy value at the end of the period amounted to SEK 206 M (168).
At the end of the period, notice of termination had been served for leases with a rental value of SEK 92 M (116), of which leases with notice of vacating the premises accounted for SEK 92 M (115) and leases terminated with notice of renegotiation amounted to zero (SEK 1 M). Of the leases for which notice had been received, vacancies corresponding to a rental value of SEK 24 M will occur in 2023.
Lettings of premises to tenants who have not yet occupied reduced the adjusted vacancy value by SEK 42 M (31). Net lettings corresponding to a rental value of SEK 28 M will occur in 2023. The adjusted vacancy value was SEK 256 M (254).
| Vacancy changes | ||
|---|---|---|
| 2023 | 2022 | |
| Amounts in SEK M | Jan-Sep | Jan-Dec |
| Opening vacancy for each year | 171 | 135 |
| New lettings | –151 | –207 |
| Vacancies | 171 | 220 |
| Change in discounts provided | 11 | 1 |
| Vacancy value, acquired properties | 4 | 19 |
| Vacancy value, sold properties | –3 | –5 |
| Change in exchange rates | 3 | 8 |
| Closing vacancy value | 206 | 171 |
| Terminated for renegotiation | – | 3 |
| Terminated lease, not vacated | 92 | 104 |
| Letting, not occupied | –42 | –49 |
| Adjusted closing vacancy value | 256 | 229 |
Operating and maintenance costs amounted to a total of SEK 325 M (300). Expenses for property tax increased to SEK 158 M (132). Other property expenses rose to SEK 68 M (60). The increase was primarily due to property acquisitions.
Central administration costs amounted to SEK 118 M (107), corresponding to 3.7% (3.9) of rental revenue for the period.
At the end of the period, Sagax had 94 (93) employees. Functions such as property caretaking and on-call operations are outsourced. Sagax has offices in Stockholm, Helsinki, Paris, Rotterdam, Barcelona and Frankfurt.
| Country | Total |
|---|---|
| Sweden | 39 |
| Finland | 27 |
| France | 12 |
| Netherlands | 9 |
| Spain | 6 |
| Germany | 1 |
| Total | 94 |
| Lettings, not occupied | Terminations | |||
|---|---|---|---|---|
| Year of occupancy and vacancy |
No. of leases |
Rental value, SEK M |
No. of leases |
Rental value, SEK M |
| 2023 | 21 | 28 | 24 | 24 |
| 2024 | 4 | 14 | 37 | 50 |
| 2025 | – | – | 5 | 8 |
| 2026 | – | – | 1 | 2 |
| 2027 | – | – | 1 | 8 |
| >2027 | – | – | – | – |
| Total | 25 | 42 | 68 | 92 |
| Segment | Rental value, SEK M |
Vacancy value, SEK M1) |
Economic vacancy rate1) |
Lettable area, sqm |
Vacant area, sqm |
Vacancy rate by area |
|---|---|---|---|---|---|---|
| Sweden | 1,033 | 63 | 6% | 918,000 | 54,000 | 6% |
| Finland | 1,779 | 87 | 5% | 1,449,000 | 80,000 | 6% |
| France | 732 | 18 | 2% | 631,000 | 15,000 | 2% |
| Benelux2) | 646 | 34 | 5% | 656,000 | 7,000 | 1% |
| Spain | 299 | 3 | 1% | 416,000 | 7,000 | 2% |
| Germany | 115 | 2 | 1% | 94,000 | 2,000 | 2% |
| Rest of Europe | 12 | – | – | 6,000 | – | – |
| Total | 4,617 | 206 | 4% | 4,170,000 | 166,000 | 4% |
1) The vacancy value and economic vacancy rate take into account both vacancies and discounts granted.
2) Sagax acquired properties in Belgium during the third quarter 2023. The properties in Belgium and the Netherlands are recognised in the segment Benelux from 1 July 2023.
Profit from joint ventures and associated companies for the period amounted to SEK –61 M (1,548), of which profit from property management accounted for SEK 698 M (606), changes in the value of properties for SEK –726 M (1,000) and changes in the value of fixed income derivatives for SEK –36 M (314). Tax on profit from joint ventures and associated companies amounted to SEK –12 M (–401). Other changes in value amounted to SEK 15 M (29). For additional information, see page 13.
Financial income amounted to SEK 304 M (144) and primarily referred to non-recurring income for repurchased bonds of SEK 59 M, financial income of SEK 123 M attributable to the current financial lease asset that arose as a result of the contracted divestment of 36 properties in Spain, interest income of SEK 71 M from listed bonds and other financial investments and SEK 46 M (144) in dividends on listed shares.
Financial expenses, excluding the interest component of IFRS 16 Leases, increased to SEK –510 M (–354) due to the increase in interest-bearing liabilities and higher market interest rates. The average interest rate on interest-bearing liabilities was 2.0% (1.6) on the balance sheet date.
The interest component of IFRS 16 Leases amounted to SEK –24 M (–21). This expense primarily comprised site leasehold fee and ground rents.
Sagax uses external valuations to determine the market value of its properties. As per the balance sheet date, a corresponding 97% of the market value of the properties had been externally valued. The changes in value for the properties amounted to SEK –954 M (2,521), of which unrealised changes in value amounted to SEK –955 M (2,530). Of this unrealised change in value, SEK 544 M (426) was attributable to property management and SEK –1,499 M (2,104) was related to general changes in market value, see table below. Refer also to page 12 for additional information.
| Unrealised changes in the value of properties | |||||
|---|---|---|---|---|---|
| Amounts in SEK M | Jan-Sep 2023 | ||||
| New lettings/Renegotiations | 684 | ||||
| Vacancies/Renegotiations | –140 | ||||
| General change in market value | –1,499 | ||||
| Total | –955 |
The change in value of financial instruments was SEK –698 M (–2,929). Realised changes in value attributable to the divestment of financial instruments amounted to SEK 23 M (3). The unrealised change in value attributable to fixed income derivatives amounted to SEK 9 M (92). Revaluation of listed shares resulted in a change in value of SEK –616 M (–3,221), of which the shareholding in Nyfosa was revalued by SEK –525 M (–2,940). The revaluation of financial instruments attributable to joint ventures amounted to SEK –38 M (150). Other financial instruments were revalued by SEK –76 M (47).
Sagax recognised a tax expense of SEK –141 M (–619) comprising of a current tax expense of SEK –143 M (–58) and a deferred tax revenue of SEK 2 M (–561). Tax revenue recognised in other comprehensive income amounted to SEK 6 M (–31). The Group's deferred tax liabilities at the end of the period amounted to SEK 4,046 M (3,778). Deferred tax assets pertaining to accumulated loss carryforwards amounted to SEK 173 M.
Cash flow from operating activities before changes in working capital amounted to SEK 2,707 M (2,302). Changes in working capital had an impact of SEK 149 M (155) on cash flow. Investing activities had an impact of SEK –2,321 M (–5,344) on cash flow, and cash flow from financing activities contributed SEK –586 M (2,917) to Sagax. In total, cash and cash equivalents changed by SEK –51 M (31) during the period.
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. The Parent Company's management fees from Group companies amounted to SEK 65 M (65).
| Amounts in SEK M | |
|---|---|
| First quarter | –333 |
| Second quarter | –508 |
| Third quarter | –114 |
| Total | –955 |
Profit from property management for 2023, 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 3,900 M. The previously submitted forecast amounted to SEK 3,800 M and was presented in the Interim Report January-June 2023.
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 October. It is important to note that this capacity is not equivalent to a forecast for the forthcoming 12 months since it does not contain assessments about, for example, future vacancies, 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 addition for estimated market rents for vacant premises. Property expenses are based on actual outcomes over the past 12
| 1 Oct 2023 | 1 Jan 2023 |
|---|---|
| 4,617 | 4,195 |
| –206 | –171 |
| 4,411 | 4,024 |
| –769 | –704 |
| 3,642 | 3,319 |
| –185 | –174 |
| 970 | 818 |
| –593 | –398 |
| –31 | –28 |
| 3,804 | 3,538 |
| –685 | –637 |
| 3,119 | 2,902 |
| 252 | 252 |
| 2,867 | 2,650 |
| 6.4 | 6.3 |
| 6.1 | 6.5 |
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% (18). Translation from EUR took place at the closing rate of SEK 11.49. Translation from EUR of the earnings capacity on 1 January 2023 took place at a rate of SEK 11.13.
Share in profit from joint ventures and associated companies are calculated in accordance with the same principles as for Sagax, taking into account the size of the participations.
On 30 September 2023, the property portfolio comprised 811 (782) properties with a lettable area of 4,170,000 square metres (4,036,000). At the end of the period, the rental value and contractual annual rent amounted to SEK 4,617 M (4,048) and SEK 4,411 M (3,880), respectively. This corresponds to an economic occupancy rate of 96% (96).
During the period, Sagax invested SEK 3,783 M (3,432), of which property acquisitions accounted for SEK 3,237 M (2,915).
A total of SEK 546 M (517) was invested in the existing property portfolio. SEK 133 M referred to property maintenance and SEK 219 M to new construction. In addition, SEK 159 M was invested in connection with new lettings and SEK 34 M against rent supplements. Of total investments, SEK 12 M referred to investments in energy-saving measures.
The Group has agreed to acquire 51 properties in France, seven properties in Spain and two properties in Belgium, with closing taking place after the end of the period. The total investment will amount to SEK 1,426 M.
During the period, six properties were divested for a total of SEK 58 M, of which four properties in France for a corresponding SEK 28 M.
The yield for the period in relation to market value at the end of the period amounted to 6.4% (5.7). Run rate yield amounted to 6.4% (5.8).
| Market value | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| SEK per | No. of | Vacant area, | Rental value, | Economic | Contractual annu | ||||
| Segment | SEK M | Share | sqm | properties | Lettable area, sqm | sqm | SEK M | occupancy rate | al rent, SEK M |
| Sweden | 14,739 | 26% | 16,100 | 120 | 918,000 | 54,000 | 1,033 | 94% | 970 |
| Finland | 18,891 | 33% | 13,000 | 228 | 1,449,000 | 80,000 | 1,779 | 95% | 1,692 |
| France | 8,580 | 15% | 13,600 | 197 | 631,000 | 15,000 | 732 | 98% | 714 |
| Benelux1) | 8,518 | 15% | 13,000 | 146 | 656,000 | 7,000 | 646 | 95% | 613 |
| Spain | 4,436 | 8% | 10,700 | 109 | 416,000 | 7,000 | 299 | 99% | 297 |
| Germany | 1,374 | 2% | 14,700 | 9 | 94,000 | 2,000 | 115 | 99% | 113 |
| Rest of Europe | 131 | 0% | 20,300 | 2 | 6,000 | – | 12 | 100% | 12 |
| Total | 56,668 | 100% | 13,600 | 811 | 4,170,000 | 166,000 | 4,617 | 96% | 4,411 |
| Amounts in SEK M | Property acquisitions | Existing portfolio | Total | Share of total investments | Divestments | Net investments |
|---|---|---|---|---|---|---|
| Sweden | 186 | 317 | 504 | 13% | – | 504 |
| Finland | 726 | 97 | 823 | 22% | –1 | 823 |
| France | 232 | 78 | 309 | 8% | –28 | 282 |
| Benelux1) | 1,056 | 37 | 1,093 | 29% | – | 1,093 |
| Spain | 964 | 15 | 978 | 26% | – | 978 |
| Germany | 73 | 2 | 75 | 2% | –30 | 45 |
| Rest of Europe | – | – | – | – | – | – |
| Total | 3,237 | 546 | 3,783 | 100% | –58 | 3,725 |
1) Sagax acquired properties in Belgium during the third quarter 2023. The properties in Belgium and the Netherlands are recognised in the segment Benelux from 1 July 2023.
Sagax has a diverse lease structure, which improves the company's possibilities to maintain an even occupancy rate. To reduce the risk of lower rental revenue, Sagax endeavours to create long-term relationships with the company's tenants and to achieve diversification in terms of the duration and size of its leases.
Sagax's annual rent at the end of the period was distributed between 2,343 leases (2,314). 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 2,336 leases (2,306) each had a rental value of less than 1% of the Group's annual rent. The total rental value for these leases accounted for 90% (86) of Sagax's annual rent. In addition, Sagax is party to 6 leases (6) with a rental value corresponding to 1–2% of the Group's annual rent. Combined, these leases total 8% (8) of Sagax's annual rent. Only 1 (2) of Sagax's leases had an annual rental value that accounted for more than 2% of the Group's annual rent. This lease represented 2% of the Group's annual rent.
Sagax's tenants operate in a variety of sectors. Companies in the manufacturing industry account for 14% (15) of rental revenue. The automotive-related industry, including sales, service and manufacturing, accounts for 14% (12) of rental revenue and food-related operations for 10% (14). Diverse tenant industries are considered to lower the risk of vacancies and rent losses. The main industries are presented in the pie chart below.
According to Sagax's asset 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 53% of the annual rent expire in or after 2027. 2–17% of annual rent expires each year between 2023 and 2026.
| Share of Annual rent |
Average | ||||
|---|---|---|---|---|---|
| contractual annual rent |
SEK M | Share, % | No. of leases |
annual rent, SEK M |
Lease term, years |
| >2% | 101 | 2 | 1 | 101 | 14 |
| 1–2% | 356 | 8 | 6 | 59 | 4 |
| <1% | 3,954 | 90 | 2,336 | 2 | 4 |
| Total | 4,411 | 100 | 2,343 | 2 | 5 |
| Lease terms | ||||
|---|---|---|---|---|
| Year of expiry | No. | Area, sqm | SEK M | Share |
| 2023 | 247 | 72,000 | 91 | 2% |
| 2024 | 746 | 625,000 | 739 | 17% |
| 2025 | 436 | 723,000 | 679 | 15% |
| 2026 | 331 | 470,000 | 555 | 13% |
| 2027 | 201 | 502,000 | 489 | 11% |
| >2027 | 381 | 1,612,000 | 1,858 | 42% |
| Total | 2,343 | 4,004,000 | 4,411 | 100% |
Industry exposure
Year of maturity of annual rent
Sagax prepares its consolidated financial statements in accordance with International Financial Reporting Standards (IFRS). The company has decided to measure its properties at fair value according to Level 3 of IFRS 13 Fair Value Measurement.
Sagax uses external valuations to determine the market value of its properties. The valuations are carried out by independent valuation companies and updated on a quarterly basis.
The total market value of Sagax's 811 properties (782) was established at SEK 56,668 M (54,350) on 30 September 2023. Exchange rate fluctuations during the period resulted in property values denominated in EUR and DKK increasing by SEK 1,216 M (2,336).
The unrealised change in value for the period amounted to SEK –955 M (2,530) corresponding to a change in value of –1.7% (5.5). In the same period, weighted inflation was 3.1% (7.5) in the markets where Sagax is active. Accordingly, the real change in value amounted to –4.6% (–1.9).
Of this unrealised change in value, SEK 544 M was attributable to property management and SEK –1,499 M mainly related to assumptions of higher capitalisation rates, changed expectations regarding inflation, higher property expenses and higher real estate transfer tax in the Netherlands.
Higher interest rates and less favourable funding terms continued to negatively affect liquidity in the property market. A number of transactions in Sagax's market segments were carried out during the period, although the turnover rate is low compared with prior years. Uncertainty in the value assessments thus remain higher than normal.
The valuations were carried out in accordance with generally accepted international valuation methods. Properties corresponding to 97% of the property value have been valued by authorised property appraisers from independent valuation companies as per 30 September 2023. For other properties, the market value was determined as the acquisition price or internal valuations were applied.
The principal method of appraisal used was cash flow calculations in which the present value of net operating income, investments 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 2022 Annual Report, page 96.
The discount rate for the present value calculation of cash flows (5.1– 16.1%), the discount rate for the present value calculation of residual values (5.1–16.1%) and the capitalisation rate for the residual value calculations (4.3–14.0%) are based on comparable transactions and on individual assessments of the risk level and market position of each property.
The weighted discount rate for the present value calculation of cash flows and residual values for the property portfolio amounted to 7.8% (7.7) and 7.9% (7.7), respectively. The weighted capitalisation rate rose to 6.4% (6.2).
| SEK M | No. | |
|---|---|---|
| Property portfolio, 31 December 2022 | 52,682 | 751 |
| Acquisition of properties | 3,237 | 66 |
| Investments in the existing portfolio | 546 | |
| Divestment of properties | –58 | –6 |
| Currency translation effect | 1,216 | |
| Unrealised changes in value | –955 | |
| Property portfolio, 30 September 2023 | 56,668 | 811 |
1) Sagax acquired properties in Belgium during the third quarter 2023. The properties in Belgium and the Netherlands are recognised in the segment Benelux from 1 July 2023.
In addition to the directly owned property portfolio, Sagax has invested in joint ventures and associated companies since 2010. The investment objective is to reach markets that Sagax does not have the capacity to reach, but which are considered attractive for shareholders. The accumulated investments amounted SEK 7,377 M, which has generated an accumulated dividend of SEK 3,185 M (2,525) for Sagax. The carrying amount of these investments amounted to SEK 13,552 M (11,134), of which 93% comprised Hemsö Fastighets AB, Nyfosa AB, Söderport Property Investment AB and NP3 Fastigheter AB.
These investments contributed a total of SEK 698 M (606) to profit from property management during the period and SEK 628 M (534) to the cash flow. Sagax's share of changes in the value of properties amounted to SEK –726 M (1,000) and the share of changes in the value of derivatives was SEK –36 M (314).
Sagax indirectly owns 15% of Hemsö, with the remaining share owned by the Third Swedish National Pension Fund. Hemsö conducts operations in Sweden, Germany and Finland. Operations consist of owning, managing and developing public properties. For more information, refer to www.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. Sagax handles the financial administration and most of the asset management.
A corresponding 75% of Söderport's rental value of SEK 1,087 M was located in Stockholm on 30 September 2023.
Sagax owns 50% of Ess-Sierra, with the remainder owned by NP3 Fastigheter AB. The operations entail owning and managing properties for primarily building supply stores. The lettable area amounts to 184,000 square metres, the majority of which comprises warehouse premises and building supply stores. Most of the properties are situated in university and regional cities. Sagax handles the financial administration and asset management.
Sagax owns shares corresponding to 23.3% of the votes and capital in Nyfosa. Sagax's CEO was elected a new member of Nyfosa's Board of Directors at the Annual General Meeting held on 25 April 2023, after which Sagax is deemed to have a significant influence in Nyfosa. Consequently, the holdings in Nyfosa are subsequently recognised as an associated company according to the equity method. Reclassification took place on 25 April 2023 based on the market value on the same date and resulted in an unrealised change in value of financial instruments of SEK –525 M. The market value of Sagax's shareholding amounted to SEK 2,617 M (2,634) and the carrying amount to SEK 3,004 M (–) on 30 September 2023.
Nyfosa is a property company active in the Swedish, Finnish and Norwegian markets with a focus on commercial properties in growth cities. The property portfolio encompassed 513 properties with a total property value of SEK 41.0 billion and a rental value of SEK 3,881 M on 30 September 2023. Nyfosa is listed on Nasdaq Stockholm, Large Cap. For more information, refer to www.nyfosa.se.
Sagax owns shares corresponding to 21.2% of the votes and 15.8% of the capital in NP3. The market value of Sagax's shareholding amounted to SEK 2,079 M (2,111) and the carrying amount to SEK 2,153 M (2,134) on 30 September 2023. NP3 is a property company focusing on highyielding commercial investment properties mainly in northern Sweden. The company's property portfolio encompassed 504 properties with a total property value of SEK 20 billion and a rental value of SEK 1,933 M on 30 September 2023. NP3 is listed on Nasdaq Stockholm, Large Cap. For more information, refer to www.np3fastigheter.se.
Sagax owns shares corresponding to 24.0% of the votes and 21.8% of the capital in Emilshus. The market value of Sagax's shareholding amounted to SEK 636 M and the carrying amount to SEK 666 M (668) on 30 September 2023. Emilshus acquires, develops and manages commercial properties in Småland and nearby growth regions. The property portfolio encompassed 127 properties with a total market value of SEK 7.2 billion and a rental value of SEK 597 M on 30 September 2023. Emilshus is listed on Nasdaq Stockholm, Mid Cap. For more information, refer to www.emilshus.com.
| Hemsö | Söderport | Ess-Sierra | |||||
|---|---|---|---|---|---|---|---|
| Jan–Sep 2023 | Jan–Sep 2022 | Jan–Sep 2023 | Jan–Sep 2022 | Jan–Sep 2023 | Jan–Sep 2022 | ||
| Sagax's ownership, % | 15 | 15 | 50 | 50 | 50 | 50 | |
| Sagax's share of comprehensive income, SEK M | –200 | 580 | 116 | 552 | –14 | 66 | |
| Sagax's share of profit from property management, SEK M |
228 | 242 | 171 | 179 | 23 | 24 | |
| Rental revenue, SEK M | 3,598 | 3,005 | 766 | 673 | 72 | 70 | |
| Profit from property management, SEK M | 1,785 | 1,798 | 342 | 381 | 46 | 48 | |
| Profit/loss for the period, SEK M | –1,648 | 3,970 | 232 | 1,188 | –28 | 132 | |
| 30 Sep 2023 | 30 Sep 2022 | 30 Sep 2023 | 30 Sep 2022 | 30 Sep 2023 | 30 Sep 2022 | ||
| Carrying amount of ownership interest, SEK M | 4,603 | 5,182 | 2,820 | 2,817 | 298 | 333 | |
| No. of properties | 485 | 468 | 85 | 84 | 39 | 39 | |
| Carrying amounts of properties, SEK M | 84,369 | 85,004 | 14,398 | 14,303 | 1,528 | 1,629 | |
| Lettable area, sqm | 2,452,000 | 2,339,000 | 773,000 | 769,000 | 184,000 | 184,000 | |
| Lease term, years | 9.5 | 9.8 | 4.1 | 4.2 | 6.7 | 6.8 | |
| Economic occupancy rate, % | 98 | 98 | 95 | 95 | 100 | 100 | |
| Interest-bearing liabilities, SEK M | 52,029 | 48,792 | 7,377 | 6,965 | 854 | 873 | |
| Loan maturity, years | 5.7 | 6.5 | 3.9 | 2.7 | 1.2 | 2.2 | |
| Average fixed interest rate period, years | 5.0 | 5.7 | 2.1 | 1.9 | 0.2 | 1.0 | |
| Market value of derivatives, SEK M | –170 | 389 | 140 | 153 | – | – |
Consolidated equity amounted to SEK 35,130 M (33,092) on 30 September 2023. Equity increased SEK 2,040 M during the period as a result of a directed issue of 10,000,000 Class B common shares, comprehensive income of SEK 732 M, transactions totalling SEK 6 M in connection with incentive plans and share dividends of SEK –1,111 M.
Sagax's interest-bearing liabilities at the end of the period amounted to SEK 31,846 M (31,900) corresponding to a nominal amount of SEK 31,912 M (31,970). An amount corresponding to SEK 30,115 M (29,775) of liabilities was recognised in EUR. Exchange rate fluctuations increased interest-bearing liabilities by SEK 1,063 M (1,761).
Listed bonds amounted to SEK 26,312 M (27,975). Other interestbearing liabilities comprised commercial paper of SEK 1,907 M (2,283) and liabilities to banks of SEK 3,626 M (1,642).
Unsecured liabilities including commercial paper corresponded to 89% (96) of interest-bearing liabilities.
The interest coverage ratio amounted to 6.4 (7.6) times for the period and the debt ratio to 43% (45) at the end of the period. Net interestbearing debt for the past 12 months was 6.5 (7.6) times EBITDA and 6.1 (7.0) times run rate EBITDA, see page 9 for more information.
A total of SEK 5,200 M (6,517) was raised in loans during the period. Repayments during the period totalled SEK 6,694 M (2,759), of which SEK 2,315 M referred to early redemption of bonds. Net interest-bearing debt totalled SEK 25,082 M (25,154).
The average remaining fixed interest and loan maturity terms were 2.8 years (3.4) and 3.3 years (3.9), respectively, at the end of the period. The average interest rate on interest-bearing liabilities was 2.0% (1.5), including the effect of derivatives on the balance sheet date.
Of Sagax's interest-bearing liabilities, SEK 26,519 M (27,703), or 83% (87), bear fixed interest rates. The company has interest-rate caps and interest-rate swaps with a total nominal value of SEK 1,191 M (1,460), corresponding to 3.7% (4.6) of interest-bearing liabilities.
Sagax's working capital amounted to SEK –5,434 M (–501) on 30 September 2023. At the same date, unutilised credit facilities including back-up facilities for commercial paper programmes amounted to SEK 8,365 M (6,809). No additional collateral needs to be pledged to utilise these credit facilities.
| Interest rate exposure1) | Loan maturity | ||||
|---|---|---|---|---|---|
| Year of expiry |
Nominal amount, SEK M |
Interest rate | Share | Nominal amount, SEK M |
Share |
| 2023 | 3,506 | 5.1% | 11% | 39 | 0% |
| 2024 | 4,477 | 2.4% | 14% | 3,608 | 11% |
| 2025 | 4,597 | 2.4% | 14% | 4,953 | 16% |
| 2026 | 3,448 | 1.7% | 11% | 4,026 | 13% |
| 2027 | 4,392 | 2.4% | 14% | 6,954 | 22% |
| >2027 | 11,492 | 0.9% | 36% | 12,331 | 39% |
| Total/ average |
31,912 | 2.0% | 100% | 31,912 | 100% |
1) Including derivatives.
Net debt
| Amounts in SEK M | 30 Sep 2023 | 30 Sep 2022 |
|---|---|---|
| Interest-bearing liabilities | 31,846 | 31,900 |
| Interest-bearing assets | –750 | –844 |
| Listed instruments1) | –5,989 | –5,788 |
| Cash and cash equivalents | –25 | –115 |
| Net debt | 25,082 | 25,154 |
1) Including associated companies whose shares are listed.
| Nominal amount, | |||||||
|---|---|---|---|---|---|---|---|
| Maturity | Interest base | EUR M | Liabilities, EUR M | Effective interest | Coupon rate | Maturity date | ISIN code |
| 2018-2024 | Fixed interest | 294 | 294 | 2.10% | 2.00% | 17 Jan 2024 | XS1877540465 |
| 2019-2025 | Fixed interest | 400 | 401 | 2.06% | 2.25% | 13 Mar 2025 | XS1962543820 |
| 2022-2026 | Fixed interest | 300 | 299 | 1.78% | 1.63% | 24 Feb 2026 | XS2447539060 |
| 2020-2027 | Fixed interest | 300 | 299 | 1.26% | 1.13% | 30 Jan 2027 | XS2112816934 |
| 2021-2028 | Fixed interest | 500 | 497 | 0.88% | 0.75% | 26 Jan 2028 | XS2291340433 |
| 2021-2029 | Fixed interest | 500 | 500 | 1.01% | 1.00% | 17 May 2029 | XS2342227837 |
| Total/average | 2,294 | 2,290 | 1.44% | 1.39% |
| Derivative contracts, 30 September 2023 | |||||
|---|---|---|---|---|---|
| Nominal | Years to | Market value | Market value | Change for | |
| Amounts in SEK M | amount | maturity | 30 Sep 2023 | 31 Dec 2022 | the period |
| Nominal interest-rate swaps | 944 | 4.2 | 16 | 2 | 14 |
| Interest-rate caps | 247 | 0.8 | 7 | 12 | –5 |
| Total/average | 1,191 | 3.5 | 23 | 14 | 9 |
| Financial covenant in | |||
|---|---|---|---|
| EMTN programme | 30 Sep 2023 | 31 Dec 2022 | |
| Rating according to Moody's Investors Services | Baa2, Stable outlook | Baa3, Positive outlook | |
| Net debt/Total assets | <65% | 36% | 35% |
| Interest coverage ratio | >1.8x | 9.4x | 12.7x |
| Secured liabilities/Total assets | <45% | 5% | 3% |
Bonds 83% (SEK 26,312 M)
Bank loans 11% (SEK 3,626 M) Commercial paper 6% (SEK 1,907 M) Distribution between secured and unsecured liabilities
Sagax's financial policy sets guidelines and rules for the financial operations to illustrate how financial risks are to be limited. Sagax has the following guidelines for its financial operations.
The following charts illustrate the outcome for the past five years in relation to the company's guidelines.
43
to the financial policy
The interest coverage ratio is to exceed 3.0x according to the financial policy
Sagax reports leases and site leaseholds in accordance with IFRS 16. Right-of-use assets are recognised as an asset with a corresponding liability. Sagax's leases and site leaseholds at the end of the period amounted to SEK 451 M (382).
Interest-bearing non-current receivables amounted to SEK 616 M (731) and comprised convertible debentures issued by the French company Groupe BMG valued at SEK 516 M (615) maturing on 31 December 2024 and promissory notes valued at SEK 99 M (116) issued in connection with a property divestment in 2021.
Listed instruments comprise listed shares that are not holdings in associated companies and bonds amounting to a total of SEK 737 M (3,273). Listed shares are recognised at the closing price on the balance sheet date and amounted to SEK 31 M (3,168). The decline was due to the holdings in Nyfosa AB being reclassified to associated companies and the holding in Cibus Nordic Real Estate AB being divested. In addition, Sagax has invested in listed bonds that at the end of the period were recognised in the amount of SEK 705 M (105). For additional information, see page 13.
Other current assets amounted to SEK 1,054 M (733) and primarily comprises prepaid costs and accrued income of SEK 435 M (302) and rent receivables of SEK 206 M (166).
| 2023 | 2022 | 2023 | 2022 | 2022 | Rolling 12 | |
|---|---|---|---|---|---|---|
| Amounts in SEK M | Jan-Sep | Jan-Sep | Jul-Sep | Jul-Sep | Jan-Dec | months |
| Rental revenue | 3,160 | 2,725 | 1,113 | 938 | 3,696 | 4,131 |
| Other revenue | 12 | 28 | 4 | 16 | 31 | 16 |
| Operating expenses | –253 | –243 | –71 | –72 | –346 | –356 |
| Maintenance costs | –72 | –57 | –23 | –19 | –84 | –100 |
| Property tax | –158 | –132 | –55 | –43 | –178 | –204 |
| Other property expenses | –68 | –60 | –26 | –20 | –87 | –95 |
| Net operating income | 2,621 | 2,262 | 942 | 799 | 3,032 | 3,392 |
| Central administration | –118 | –107 | –39 | –30 | –174 | –185 |
| Profit from joint ventures and associated companies | –61 | 1,548 | 29 | 17 | 1,375 | –233 |
| – of which, profit from property management | 698 | 606 | 261 | 215 | 766 | 858 |
| – of which, changes in value | –762 | 1,314 | –232 | –189 | 852 | –1,224 |
| – of which, tax | –12 | –401 | –1 | –9 | –351 | 39 |
| – of which, other | 15 | 29 | – | – | 108 | 94 |
| Financial income | 304 | 144 | 33 | 58 | 235 | 396 |
| Financial expenses | –510 | –354 | –174 | –125 | –492 | –649 |
| Financial expense, interest component of leases | –24 | –21 | –8 | –7 | –28 | –31 |
| Profit including profit from joint ventures and associated companies | 2,213 | 3,471 | 782 | 712 | 3,948 | 2,690 |
| – of which, profit from property management | 2,972 | 2,530 | 1,015 | 910 | 3,339 | 3,781 |
| Changes in value of properties, realised | 1 | –9 | 1 | –1 | –12 | –3 |
| Changes in value of properties, unrealised | –955 | 2,530 | –114 | 664 | 1,709 | –1,776 |
| Changes in value of financial instruments, realised | 23 | 3 | – | – | 3 | 23 |
| Changes in value of financial instruments, unrealised | –721 | –2,932 | 4 | –488 | –2,343 | –132 |
| Profit before tax | 561 | 3,064 | 674 | 888 | 3,305 | 802 |
| Deferred tax | 2 | –561 | 4 | –169 | –523 | 40 |
| Current tax | –143 | –58 | –44 | –16 | –63 | –148 |
| Profit for the period | 420 | 2,445 | 634 | 702 | 2,718 | 694 |
| Other comprehensive income – items that might be reclassified subsequently to the profit or loss: |
||||||
| Translation differences for foreign operations | 507 | 1,183 | –439 | 376 | 1,478 | 801 |
| Share of other comprehensive income for joint ventures | 67 | 29 | 52 | 7 | 27 | 65 |
| Translation differences, hedge accounting | –267 | –694 | 199 | –214 | –878 | –451 |
| Tax on items that may be reclassified | 6 | –31 | –3 | –13 | –42 | –6 |
| Total other comprehensive income, net of tax | 312 | 487 | –191 | 156 | 585 | 409 |
| Total comprehensive income for the period | 732 | 2,932 | 443 | 858 | 3,303 | 1,103 |
| Earnings per Class A and B share, SEK | 0.72 | 7.10 | 1.78 | 2.01 | 7.76 | 1.38 |
| Earnings per Class A and B share after dilution, SEK | 0.72 | 7.09 | 1.78 | 2.01 | 7.75 | 1.38 |
| Earnings per Class D share, SEK | 1.50 | 1.50 | 0.50 | 0.50 | 2.00 | 2.00 |
| Average number of Class A and B shares, million | 321.8 | 317.9 | 328.3 | 318.0 | 317.8 | 320.9 |
| Average number of Class A and B shares after dilution, million | 322.2 | 318.3 | 328.5 | 318.4 | 318.3 | 321.3 |
| Average number of Class D shares, million | 126.3 | 126.3 | 126.3 | 126.3 | 126.3 | 126.3 |
| Amounts in SEK M | 2023 30 Sep |
2022 30 Sep |
2022 31 Dec |
|---|---|---|---|
| Investment properties | 56,668 | 54,350 | 52,655 |
| Investment properties for sale | – | – | 27 |
| Leases, right-of-use assets | 451 | 382 | 380 |
| Joint ventures and associated companies | 13,552 | 11,134 | 11,022 |
| Deferred tax assets | 173 | – | – |
| Derivatives | 23 | 12 | 14 |
| Interest-bearing non-current receivables | 616 | 731 | 746 |
| Other fixed assets | 181 | 188 | 146 |
| Total fixed assets | 71,664 | 66,797 | 64,991 |
| Listed instruments | 737 | 3,273 | 3,891 |
| Current finance lease asset | – | – | 2,008 |
| Interest-bearing current receivables | 26 | – | – |
| Other current assets | 1,054 | 733 | 865 |
| Cash and bank balances | 25 | 115 | 76 |
| Total current assets | 1,842 | 4,121 | 6,840 |
| Total assets | 73,505 | 70,918 | 71,831 |
| Equity | 35,130 | 33,092 | 33,463 |
| Non-current interest-bearing liabilities | 26,292 | 28,763 | 29,820 |
| Deferred tax liabilities | 4,046 | 3,778 | 3,779 |
| Non-current lease liabilities | 451 | 382 | 380 |
| Other non-current liabilities | 311 | 281 | 299 |
| Total non-current liabilities | 31,100 | 33,204 | 34,278 |
| Commercial paper | 1,907 | 2,283 | 1,572 |
| Other current interest-bearing liabilities | 3,647 | 854 | 902 |
| Other current liabilities | 1,722 | 1,485 | 1,616 |
| Total current liabilities | 7,276 | 4,622 | 4,090 |
| Total equity and liabilities | 73,505 | 70,918 | 71,831 |
| 2023 | 2022 | 2023 | 2022 | 2022 | Rolling 12 | |
|---|---|---|---|---|---|---|
| Amounts in SEK M | Jan-Sep | Jan-Sep | Jul-Sep | Jul-Sep | Jan-Dec | months |
| Profit before tax | 561 | 3,064 | 674 | 888 | 3,305 | 802 |
| Changes in value of financial instruments | 698 | 2,929 | –4 | 488 | 2,341 | 109 |
| Change in value of properties | 954 | –2,521 | 112 | –663 | –1,697 | 1,779 |
| Profit from joint ventures and associated companies | 61 | –1,548 | –29 | –17 | –1,375 | 233 |
| Dividends from joint ventures and associated companies | 589 | 534 | 184 | 3 | 577 | 633 |
| Dissolution of allocated borrowing costs | 37 | 35 | 14 | 9 | 44 | 47 |
| Other items not included in cash flow | –40 | –41 | 16 | –3 | –31 | –29 |
| Tax paid | –154 | –150 | –43 | –45 | –149 | –154 |
| Cash flow from operating activities before changes in working capital |
2,707 | 2,302 | 925 | 659 | 3,015 | 3,420 |
| Cash flow from changes in current receivables | 169 | 56 | 54 | 123 | –159 | –47 |
| Cash flow from changes in current liabilities | –20 | 99 | 272 | 129 | 371 | 252 |
| Cash flow from operating activities | 2,855 | 2,458 | 1,251 | 911 | 3,227 | 3,625 |
| Acquisition of properties | –3,237 | –2,913 | –2,140 | –651 | –3,202 | –3,525 |
| Property sales | 58 | 5 | 37 | 7 | 47 | 100 |
| Investments in existing properties | –546 | –517 | –232 | –197 | –715 | –744 |
| Acquisition of listed shares | –319 | –1,617 | –34 | –191 | –1,617 | –319 |
| Sales of listed shares | 362 | – | –151 | – | – | 362 |
| Purchase of financial instruments | –684 | –105 | –223 | –105 | –106 | –684 |
| Sale of financial instruments | 2,026 | 44 | – | 44 | 44 | 2,026 |
| Acquisition of joint ventures and associated companies | –84 | –11 | – | – | –29 | –102 |
| Divestments of joint ventures and associated companies | –5 | – | –5 | 3 | 3 | –2 |
| Capital contribution to joint ventures and associated companies | –75 | –123 | –75 | – | –238 | –190 |
| Lending to joint ventures and associated companies | –36 | –50 | –26 | –10 | –64 | –49 |
| Increase in other fixed assets | –46 | –58 | 0 | –23 | –58 | –46 |
| Decrease in other fixed assets | 264 | 3 | 205 | – | 33 | 294 |
| Cash flow from investing activities | –2,321 | –5,344 | –2,643 | –1,126 | –5,902 | –2,880 |
| Issue of Class B shares | 2,071 | 39 | 32 | – | 39 | 2,071 |
| Dividends paid to shareholders | –1,048 | –872 | –63 | –63 | –935 | –1,111 |
| Incentive plan | –26 | –24 | –34 | – | –24 | –26 |
| Proceeds from borrowings | 5,200 | 6,517 | 1,756 | 1,254 | 7,631 | 6,315 |
| Repayment of borrowings | –6,694 | –2,759 | –59 | –968 | –4,050 | –7,985 |
| Redemption of financial instruments | – | 16 | – | – | 16 | – |
| Decrease in other non-current liabilities | –195 | –11 | –181 | – | –23 | –207 |
| Increase in other non-current liabilities | 104 | 11 | –55 | – | 11 | 105 |
| Cash flow from financing activities | –586 | 2,917 | 1,396 | 223 | 2,666 | –837 |
| Cash flow for the period | –52 | 30 | 3 | 8 | –10 | –92 |
| Exchange rate differences in cash and cash equivalents | 1 | 1 | 0 | 3 | 2 | 2 |
| Change in cash and cash equivalents | –51 | 31 | 3 | 11 | –8 | –90 |
| Cash and cash equivalents at beginning of period | 76 | 84 | 22 | 104 | 84 | 115 |
| Cash and cash equivalents at end of period | 25 | 115 | 25 | 115 | 76 | 25 |
| Profit earned | |||||
|---|---|---|---|---|---|
| Amounts in SEK M | Share capital | Other contributed capital |
Reserves, translation differences |
incl. net profit for the period |
Total equity1) |
| Equity 31 December 2021 | 780 | 3,578 | 493 | 26,228 | 31,079 |
| Profit for the period, January-September 2022 | – | – | – | 2,445 | 2,445 |
| Other comprehensive income, January-September 2022 | – | – | 486 | – | 486 |
| Total comprehensive income for the period | – | – | 486 | 2,445 | 2,932 |
| Transactions with shareholders | |||||
| Issue of Class B shares, incentive plan | 1 | 38 | – | – | 39 |
| Dividends | – | – | – | –935 | –935 |
| Transactions with shareholders | 1 | 38 | – | –935 | –896 |
| Other transactions | |||||
| Redemption of incentive plan | – | – | – | –31 | –31 |
| Subscription of incentive plan | – | – | – | 7 | 7 |
| Other transactions | – | – | – | –24 | –24 |
| Equity, 30 September 2022 | 781 | 3,616 | 980 | 27,714 | 33,092 |
| Profit for the period, October-December 2022 | – | – | – | 274 | 274 |
| Other comprehensive income, October-December 2022 | – | – | 99 | – | 99 |
| Total comprehensive income for the period | – | – | 99 | 274 | 373 |
| Equity, 31 December 2022 | 781 | 3,616 | 1,078 | 27,988 | 33,463 |
| Profit for the period, January-September 2023 | – | – | – | 420 | 420 |
| Other comprehensive income, January-September 2023 | – | – | 312 | – | 312 |
| Total comprehensive income for the period | – | – | 312 | 420 | 732 |
| Transactions with shareholders | |||||
| Issue of Class B shares | 18 | 2,075 | – | – | 2,092 |
| Dividends | – | – | – | –1,111 | –1,111 |
| Transactions with shareholders | 18 | 2,075 | – | –1,111 | 982 |
| Other transactions | |||||
| Transaction costs | – | –21 | – | – | –21 |
| Redemption of incentive plan | – | – | – | –34 | –34 |
| Subscription of incentive plan | – | – | – | 8 | 8 |
| Other transactions | – | –21 | – | –26 | –47 |
| Equity, 30 September 2023 | 799 | 5,670 | 1,390 | 27,272 | 35,130 |
1) Equity is attributable in its entirety to the Parent Company's shareholders.
| Amounts in SEK M | 2023 Jan-Sep |
2022 Jan-Sep |
2022 Jan-Dec |
|---|---|---|---|
| Net sales | 86 | 84 | 118 |
| Administration costs | –90 | –87 | –125 |
| Loss before financial income and expenses | –4 | –3 | –7 |
| Profit from participations in Group companies | 248 | 121 | 1,863 |
| Profit from participations in joint ventures | 161 | 117 | 109 |
| Financial income | 630 | 330 | 1,314 |
| Financial expenses | –402 | –132 | –1,305 |
| Profit before tax and appropriations | 633 | 432 | 1,974 |
| Appropriations | – | – | 35 |
| Tax | –18 | –7 | –7 |
| Profit for the period | 615 | 426 | 2,002 |
| Total equity, untaxed reserves and liabilities | 40,495 | 37,343 | 40,166 |
|---|---|---|---|
| Total current liabilities | 8,561 | 5,742 | 6,815 |
| Other current liabilities | 292 | 330 | 298 |
| Liabilities to Group companies | 6,343 | 3,069 | 4,847 |
| Current interest-bearing liabilities | 1,927 | 2,343 | 1,670 |
| Total non-current liabilities | 25,090 | 28,062 | 28,050 |
| Deferred tax liabilities | 5 | 4 | 5 |
| Liabilities to Group companies | 18,285 | 18,506 | 18,111 |
| Non-current interest-bearing liabilities | 6,800 | 9,552 | 9,935 |
| Untaxed reserves | 22 | 30 | 22 |
| Equity | 6,822 | 3,509 | 5,278 |
| Total assets | 40,495 | 37,343 | 40,166 |
| Total current assets | 24,669 | 22,644 | 25,073 |
| Other current assets | 30 | 70 | 29 |
| Receivables from Group companies | 24,638 | 22,573 | 25,044 |
| Cash and bank balances | 1 | 1 | – |
| Total fixed assets | 15,826 | 14,699 | 15,093 |
| Other financial fixed assets | 14,633 | 13,068 | 13,378 |
| Receivables from Group companies | 1,192 | 1,630 | 1,714 |
| Tangible fixed assets | 1 | 1 | 1 |
| Amounts in SEK M | 30 Sep | 30 Sep | 31 Dec |
| 2023 | 2022 | 2022 |
| Changes in value, properties | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Segments | Rental revenue1) | Net operating income | Unrealised | Realised | Total return | |||||
| Amounts in SEK M | 2023 Jan-Sep |
2022 Jan-Sep |
2023 Jan-Sep |
2022 Jan-Sep |
2023 Jan-Sep |
2022 Jan-Sep |
2023 Jan-Sep |
2022 Jan-Sep |
2023 Jan-Sep |
2022 Jan-Sep |
| Sweden | 709 | 646 | 605 | 558 | –547 | 849 | – | 0 | 58 | 1,407 |
| Finland | 1,255 | 1,050 | 1,029 | 847 | –375 | 554 | 0 | –9 | 654 | 1,393 |
| France | 504 | 406 | 390 | 316 | 68 | 283 | 1 | – | 458 | 599 |
| Benelux2) | 424 | 328 | 386 | 298 | –197 | 595 | – | – | 190 | 894 |
| Spain | 180 | 219 | 163 | 198 | 131 | 296 | – | – | 294 | 495 |
| Germany | 79 | 69 | 76 | 67 | –20 | –45 | 0 | – | 57 | 22 |
| Rest of Europe | 9 | 8 | 9 | 7 | –16 | –3 | – | – | –8 | 4 |
| Non-specified | – | – | –36 | –30 | 0 | 0 | – | – | –36 | –30 |
| Total | 3,160 | 2,725 | 2,621 | 2,262 | –955 | 2,530 | 1 | –9 | 1,666 | 4,783 |
| Segments | Market value properties |
Investments properties |
Acquisition properties |
Divestment properties |
||||
|---|---|---|---|---|---|---|---|---|
| Amounts in SEK M | 2023 30 Sep |
2022 30 Sep |
2023 Jan-Sep |
2022 Jan-Sep |
2023 Jan-Sep |
2022 Jan-Sep |
2023 Jan-Sep |
2022 Jan-Sep |
| Sweden | 14,739 | 14,831 | 317 | 135 | 186 | 91 | – | – |
| Finland | 18,891 | 17,939 | 97 | 256 | 726 | 715 | –1 | –14 |
| France | 8,580 | 7,640 | 78 | 27 | 232 | 1,546 | –28 | – |
| Benelux2) | 8,518 | 7,367 | 37 | 23 | 1,056 | 215 | – | – |
| Spain | 4,436 | 5,187 | 15 | 76 | 964 | 297 | – | – |
| Germany | 1,374 | 1,248 | 2 | – | 73 | 52 | –30 | – |
| Rest of Europe | 131 | 137 | – | – | – | – | – | – |
| Total | 56,668 | 54,350 | 546 | 517 | 3,237 | 2,915 | –58 | –14 |
1) All rental revenue pertains to external tenants.
2) Sagax acquired properties in Belgium during the third quarter 2023. The properties in Belgium and the Netherlands are recognised in the segment Benelux from 1 July 2023.
| 2023 Jan-Sep |
2022 Jan-Sep |
2022 Jan-Dec |
2021 Jan-Dec |
2020 Jan-Dec |
2019 Jan-Dec |
2018 Jan-Dec |
|
|---|---|---|---|---|---|---|---|
| Property-related key figures | |||||||
| Yield, % | 6.4 | 5.7 | 5.8 | 6.0 | 6.3 | 6.4 | 6.8 |
| Surplus ratio, % | 83 | 83 | 82 | 83 | 83 | 83 | 83 |
| Occupancy rate by area, % | 96 | 96 | 95 | 96 | 95 | 95 | 95 |
| Economic occupancy rate, % | 96 | 96 | 96 | 96 | 95 | 95 | 95 |
| Lettable area at the end of the period, 000 sqm | 4,170 | 4,036 | 3,895 | 3,759 | 3,480 | 3,022 | 2,850 |
| No. of properties at the end of the period | 811 | 782 | 751 | 673 | 673 | 553 | 512 |
| Financial key figures | |||||||
| Return on total capital, % | 6.4 | 5.8 | 5.7 | 5.9 | 6.6 | 6.7 | 6.8 |
| Return on equity, % | 1.6 | 10.0 | 8.4 | 36.6 | 17.8 | 23.7 | 23.7 |
| Average interest rate, % | 2.0 | 1.6 | 1.7 | 1.4 | 1.8 | 1.9 | 2.2 |
| Fixed interest period incl. derivatives, years | 2.8 | 3.4 | 3.2 | 4.0 | 3.4 | 3.5 | 3.0 |
| Loan maturity, years | 3.3 | 3.9 | 3.7 | 4.3 | 3.4 | 3.8 | 3.6 |
| Equity/assets ratio, % | 48 | 47 | 47 | 50 | 48 | 48 | 46 |
| Debt ratio, % | 43 | 45 | 45 | 42 | 43 | 44 | 47 |
| Net debt/run rate EBITDA, multiple | 6.1 | 7.0 | 6.5 | 5.4 | 6.4 | 6.6 | 7.1 |
| Net debt/EBITDA, multiple | 6.5 | 7.6 | 7.1 | 5.8 | 6.4 | 6.6 | 7.4 |
| Interest coverage ratio, multiple | 6.4 | 7.6 | 7.1 | 6.5 | 5.7 | 4.9 | 4.2 |
| Interest coverage ratio, EMTN programme, multiple | 9.4 | 12.0 | 12.7 | 9.4 | 6.4 | 5.3 | 4.3 |
| Data per Class A and B share | |||||||
| Price of Class B share at the end of the period, SEK | 208.50 | 184.20 | 236.50 | 305.00 | 169.60 | 136.20 | 65.70 |
| Net asset value, SEK | 108.54 | 105.63 | 106.61 | 97.92 | 66.38 | 56.77 | 44.22 |
| Equity, SEK | 93.53 | 90.16 | 91.33 | 83.93 | 55.19 | 46.86 | 35.70 |
| Equity after dilution, SEK | 93.49 | 90.06 | 91.20 | 83.84 | 55.09 | 46.78 | 35.67 |
| Earnings, SEK | 0.72 | 7.10 | 7.76 | 30.09 | 10.80 | 12.15 | 9.24 |
| Earnings after dilution, SEK | 0.72 | 7.09 | 7.75 | 30.04 | 10.78 | 12.13 | 9.24 |
| Profit from property management, SEK | 8.65 | 7.36 | 9.71 | 8.01 | 6.63 | 5.51 | 4.31 |
| Profit from property management after dilution, SEK | 8.64 | 7.35 | 9.70 | 7.99 | 6.62 | 5.51 | 4.31 |
| Cash flow, SEK | 7.82 | 6.65 | 8.69 | 6.59 | 6.10 | 4.86 | 3.95 |
| Cash flow after dilution, SEK | 7.81 | 6.64 | 8.68 | 6.58 | 6.09 | 4.86 | 3.95 |
| Dividend per share, SEK | – | – | 2.70 | 2.15 | 1.65 | 1.30 | 1.00 |
| No. of shares at end of period, million | 328.3 | 318.0 | 318.0 | 317.7 | 317.3 | 317.1 | 316.8 |
| No. of shares at end of period after dilution, million | 328.5 | 318.4 | 318.5 | 318.0 | 317.9 | 317.5 | 317.1 |
| Average number of shares, million | 321.8 | 317.9 | 317.8 | 317.5 | 317.1 | 316.9 | 316.7 |
| Average number of shares after dilution, million | 322.2 | 318.3 | 318.3 | 318.0 | 317.7 | 317.3 | 316.9 |
| Data per Class D share | |||||||
| Share price at the end of period, SEK | 25.65 | 25.00 | 26.70 | 33.40 | 32.05 | 36.35 | 31.70 |
| Equity, SEK | 35.00 | 35.00 | 35.00 | 35.00 | 35.00 | 35.00 | 35.00 |
| Earnings, SEK | 1.50 | 1.50 | 2.00 | 2.00 | 2.00 | 2.00 | 2.00 |
| Dividend per share, SEK | – | – | 2.00 | 2.00 | 2.00 | 2.00 | 2.00 |
| No. of shares at end of period, million | 126.3 | 126.3 | 126.3 | 126.3 | 125.8 | 107.8 | 101.9 |
| Average number of shares, million | 126.3 | 126.3 | 126.3 | 126.2 | 118.4 | 105.7 | 83.0 |
Definitions of key performance indicators are provided on pages 33–34.
At the end of the period, Sagax had 23,582 (23,640) known shareholders. Sagax's market capitalisation amounted to SEK 71,736 M (61,690).
Sagax has three classes of shares: Class A, B and D common shares. The shares are listed on Nasdaq Stockholm, Large Cap.
A total of 456,595,984 shares were outstanding at the end of the period, of which 2,000,000 were Class B treasury shares. 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 carried out a directed issue of 10,000,000 Class B common shares and due to the exercise of warrants under the 2020/2023 incentive plan, issued an additional 314,638 Class B common shares.
Sagax has three warrant plans for the company's employees. In total, Sagax's employees hold warrants corresponding to 0.3% 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 2021-2024, 2022-2025 and 2023-2026.
The subscription price corresponds to the price paid for the Class B share at the start of each warrant plan, converted using the average
share price performance in accordance with a real estate index comprising property companies listed on Nasdaq Stockholm's main list for a three-year 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 A and B share after dilution on a rolling 12-month basis amounted to SEK 10.98 (9.38), which, compared with the share price of the Class B share at the end of the period, corresponded to a multiple of 19.0 (19.6).
Equity per Class A and B share after dilution amounted to SEK 93.49 (90.06). Net asset value per Class A and B share amounted to SEK 108.54 (105.63). The share price for the Class B share at the end of the period was 223% (205) of equity per Class A and B share and 192% (174) of NAV per Class A and B share.
| 2023 | 2022 | 2022 | 2021 | 2020 | 2019 | 2018 | |
|---|---|---|---|---|---|---|---|
| 30 Sep | 30 Sep | 31 Dec | 31 Dec | 31 Dec | 31 Dec | 31 Dec | |
| Share price at the end of period, SEK | 208.50 | 184.20 | 236.50 | 305.00 | 169.60 | 136.20 | 64.70 |
| Profit from property management after dilution, SEK1) | 10.98 | 9.38 | 9.70 | 7.99 | 6.62 | 5.51 | 4.31 |
| Cash flow after dilution, SEK1)2) | 9.86 | 8.23 | 8.68 | 6.58 | 6.09 | 4.86 | 3.95 |
| Equity after dilution, SEK | 93.49 | 90.06 | 91.20 | 83.84 | 55.09 | 46.78 | 35.67 |
| Net asset value, SEK | 108.54 | 105.63 | 106.61 | 97.92 | 66.38 | 56.77 | 44.22 |
| Share price/Profit from property management, multiple1) | 19.0 | 19.6 | 24.4 | 38.2 | 25.6 | 24.7 | 15.0 |
| Share price/Cash flow, multiple1)2) | 21.1 | 22.4 | 27.3 | 46.4 | 27.9 | 28.0 | 16.4 |
| Share price/Equity, % | 223 | 205 | 259 | 364 | 308 | 292 | 182 |
| Share price/Net asset value, % | 192 | 174 | 222 | 311 | 255 | 240 | 147 |
1) Profit from property management and cash flow pertains to rolling 12 months.
2) Cash flow pertains to cash flow from operating activities before changes in working capital.
| Price paid, SEK | Turnover rate on an annual basis, % |
Average trading volume per trading day, SEK M |
||||
|---|---|---|---|---|---|---|
| 30 Sep 2023 | 30 Sep 2022 | 30 Sep 2023 | 30 Sep 2022 | 30 Sep 2023 | 30 Sep 2022 | |
| Class A shares | 210.00 | 182.50 | 2 | 31 | 0.5 | 7.2 |
| Class B shares | 208.50 | 184.20 | 24 | 35 | 67.5 | 96.9 |
| Class D shares | 25.65 | 25.00 | 50 | 71 | 6.8 | 10.2 |
| Ownership structure 30 September 20231) | |||||||
|---|---|---|---|---|---|---|---|
| No. of shares | No. of known shareholders |
Shareholder category | No. | Share of voting power |
Shareholders by country | No. | Share of voting power |
| 1–500 | 16,758 | Private individuals residing | Sweden | 22,324 | 85% | ||
| 501–1,000 | 1,972 | in Sweden | 21,712 | 13% | |||
| 1,001–2,000 | 1,563 | Private individuals residing abroad |
293 | 1% | USA | 79 | 5% |
| 2,001–5,000 | 1,468 | Norway | 216 | 2% | |||
| 5,001–10,000 | 677 | Companies/institutions in Sweden | 612 | 73% | Denmark | 549 | 1% |
| 10,001–50,000 | 807 | Companies/institutions abroad | 965 | 9% | UK | 50 | 1% |
| 50,001– | 337 | Unknown type of shareholder | – | 5% | Other | 364 | 7% |
| Total | 23,582 | Total | 23,582 | 100% | Total | 23,582 | 100% |
| Largest shareholders 30 September 20231) | |||||||
|---|---|---|---|---|---|---|---|
| No. of shares | Percentage of | ||||||
| Class A shares | Class B shares | Class D shares | Share capital | Votes2) | |||
| David Mindus and companies | 14,000,000 | 63,713,912 | 900,000 | 17.2% | 29.5% | ||
| Staffan Salén and companies | 5,737,309 | 31,598,279 | 95,600 | 8.2% | 12.8% | ||
| Fourth Swedish National Pension Fund | 805,716 | 15,178,459 | 9,548,561 | 5.6% | 4.7% | ||
| Third Swedish National Pension Fund | – | 24,752,658 | – | 5.4% | 3.6% | ||
| Avanza Pension | 44,995 | 216,371 | 12,188,745 | 2.7% | 1.9% | ||
| Vanguard | – | 7,178,933 | 5,039,107 | 2.7% | 1.8% | ||
| SEB Fonder | – | 12,085,166 | – | 2.6% | 1.7% | ||
| Länsförsäkringar Fonder | – | 8,701,334 | 773,607 | 2.1% | 1.4% | ||
| Handelsbanken Fonder | – | 7,947,153 | 1,145,228 | 2.0% | 1.3% | ||
| BlackRock | – | 7,888,408 | 14,015 | 1.7% | 1.1% | ||
| Rutger Arnhult and companies | – | 306,824 | 6,596,183 | 1.5% | 1.0% | ||
| Norges Bank | – | 4,341,848 | 2,477,164 | 1.5% | 1.0% | ||
| Filip Engelbert and companies | 241,000 | 1,869,784 | 4,200,000 | 1.4% | 1.2% | ||
| Swedbank Robur Fonder | 500,000 | 5,846,729 | – | 1.4% | 1.6% | ||
| Lannebo Fonder | – | 5,298,448 | – | 1.2% | 0.8% | ||
| Erik Selin and companies | 1,169,959 | 1,175,449 | 2,026,868 | 1.0% | 2.1% | ||
| Second Swedish National Pension Fund | – | 4,142,696 | – | 0.9% | 0.6% | ||
| Patrik Brummer | – | – | 4,066,666 | 0.9% | 0.6% | ||
| Folksam | – | 3,555,655 | – | 0.8% | 0.5% | ||
| Danske Invest | – | 1,375,503 | 2,000,000 | 0.7% | 0.5% | ||
| Total 20 largest shareholders | 22,498,979 | 207,173,609 | 51,071,744 | 61.5% | 69.7% | ||
| Other shareholders | 4,041,355 | 94,620,712 | 75,189,585 | 38.1% | 30.3% | ||
| Sub-total | 26,540,334 | 301,794,321 | 126,261,329 | 99.6% | 100.0% | ||
| Shares held by AB Sagax | – | 2,000,000 | – | 0.4% | – | ||
| Total | 26,540,334 | 303,794,321 | 126,261,329 | 100.0% | 100.0% | ||
| – of which, Board and employees | 20,353,565 | 103,882,712 | 6,577,790 | 28.6% | 45.3% |
1) Source: Monitor from Modular Finance AB. Data compiled and processed from such sources as Euroclear Sweden, Morningstar and Finansinpektionen. 2) Voting rights for treasury shares held by AB Sagax have been excluded.
| Voting rights and proportion of share capital | |||||
|---|---|---|---|---|---|
| Voting rights | Proportion | Proportion | |||
| Class of share | No. of shares | per share | No. of votes | of votes | of share capital |
| Class A shares | 26,540,334 | 1.0 | 26,540,334.00 | 38% | 6% |
| Class B shares | 303,794,321 | 0.1 | 30,379,432.10 | 44% | 67% |
| Class D shares | 126,261,329 | 0.1 | 12,626,132.90 | 18% | 28% |
| Total | 456,595,984 | 69,545,899.00 | 100% | 100% |
To prepare the accounts based on IFRS, 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 is significantly affected by the judgments and assumptions made. To reduce the risk of incorrect assessments, properties corresponding to 97% of the property value on 30 September 2023 were valued by authorised property appraisers from independent valuation companies. By their very nature, properties valuations are always associated with a certain level of uncertainty.
Sagax prioritises leasing to tenants with a high credit rating and on 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.
Sagax mainly enters into net leases. This means the tenant accounts for the costs of such items as heating, electricity, property tax, water and sewage, in addition to the contractual rent. Accordingly, Sagax is only affected to a limited extent by changed costs due to changes in consumption or changed rates for such utilities as heating and electricity. More than 95% of Sagax's leases are indexed to the CPI or the equivalent. Annual indexation may, in certain cases, be limited by a CPI ceiling or floor. Some leases have annual fixed rental adjustments.
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 a rise in interest rates, the Group has a significant portion of fixed-rate loans. To limit interest-rate risk for loans at floating interest rates, interest-rate swaps and interest-rate caps are used. Sagax's funding primarily comprises equity and interestbearing liabilities. Sagax endeavours to secure a long average remaining term of interest-bearing liabilities 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 the EUR. Net exposure on 30 September 2023, assets less liabilities in EUR, amounted to SEK 9,548 M (7,674). In total, net exposure in EUR amounted to 27% (22) of equity. In preparing the consolidated financial statements, the balance sheets of the Group's foreign operations are translated from their functional currencies into SEK based on the exchange rates applying on the balance sheet date. On 30 September 2023, EUR 1 was equivalent to SEK 11.49, and DKK 1 was equivalent to SEK 1.54. Revenue and expense items are translated at the average exchange rate for the period: EUR 1 was equivalent to SEK 11.48 and DKK 1 was equivalent to SEK 1.54. 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.
To limit the risk of potential conflicts of interest, the Group has policies that prohibit Sagax's employees and Board members from:
The policies also specify that senior executives and Board members who borrow against more than 10% of the market value of their shares in Sagax shall notify the company. As per the publication of this report no such notification has been received.
Geopolitical conflicts, higher inflation and rising market interest rates continued to have a negative effect on the financial markets, resulting in, for example, rising market interest rates and greater volatility. The property market has thus been negatively impacted by this. The company is monitoring developments to identify and, if possible, address any risks.
Sagax's other risks are described in the 2022 Annual Report, on pages 50-53.
| Currency exposure | ||
|---|---|---|
| Amounts in EUR M | 30 Sep 2023 |
30 Sep 2022 |
| Investment properties | 3,678 | 3,426 |
| Other assets | 102 | 116 |
| Total assets | 3,780 | 3,542 |
| Interest-bearing liabilities Other liabilities |
2,621 329 |
2,727 158 |
| Total liabilities | 2,950 | 2,885 |
| Net exposure | 831 | 657 |
Sagax's exposure to material risks in the company's operations is presented below.
| Sensitivity analysis for property values | ||||||
|---|---|---|---|---|---|---|
| –20% | –10% | 0% | +10% | +20% | ||
| Value change, SEK M | –11,334 | –5,667 | 0 | 5,667 | 11,334 | |
| Debt ratio, % | 51 | 47 | 43 | 40 | 38 | |
| Sensitivity analysis for changes in the occupancy rate | |||||
|---|---|---|---|---|---|
| –10% | –5% | 0% | +5% | +10% | |
| Occupancy rate, % | 86 | 91 | 96 | N/A | N/A |
| Interest coverage ratio, multiple 5.8 6.1 6.4 N/A N/A |
| Change | Value change, SEK M | |
|---|---|---|
| Capitalisation rate | +/–0.25% point | –1,740/+1,883 |
| Discount rate | +/–0.25% point | – 977/+996 |
| Rental revenue | +/–5% | +2,466/–2,511 |
| Property expenses | +/–5% | –342/+341 |
| Effect on | ||||
|---|---|---|---|---|
| Amounts in SEK M | Change | profit from property management, annual basis |
Effect on profit after tax, annual basis |
Effect on equity |
| Economic occupancy rate | +/–1% point | +46/–46 | +37/–37 | +37/–37 |
| Rental revenue | +/–1% | +44/–44 | +36/–36 | +36/–36 |
| Property expenses | +/–1% | –8/+8 | –6/+6 | –6/+6 |
| Interest expenses for liabilities in SEK including fixed income derivatives | +/–1% point | –7/+7 | –6/+6 | –6/+6 |
| Interest expenses for liabilities in EUR including fixed income derivatives | +/–1% point | –52/+52 | –41/+41 | –41/+41 |
| Change in SEK/EUR exchange rate2) | +/–10% | +223/–223 | +180/–180 | +955/–955 |
| Changed rent level for contract maturity in 2023 | +/–10% | +9/–9 | +7/–7 | +7/–7 |
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 2022 Annual Report and are to be read together with this Annual Report.
There are no amendments to accounting standards in 2023 that are deemed to have any material impact on the company's financial statements.
Rounding-off differences may occur.
Transactions with related parties are described in Note 27 of the 2022 Annual Report. No material changes regarding transactions with related parties have taken place in relation to the information presented in the 2022 Annual Report.
On October 24, 2023 it was announced that Sagax through 4 separate transactions acquired 10 properties for the equivalent of SEK 425 million. The properties comprise a lettable area of 42,800 square metres, mainly consisting of premises for warehousing and light industrial purposes. The annual rental income amounts to the equivalent of SEK 26 million. The occupancy rate is 86% and the average remaining lease term is 3.6 years. Closing is expected to take place during the fourth quarter of 2023. The acquisitions will be reported in Sagax's segments Spain (SEK 341 million) and France (SEK 84 million).
On October 26, 2023 it was announced that Sagax has entered into an agreement with a world leader in construction and maintenance of transport infrastructures regarding a sale- and leaseback transaction concerning 47 properties in France. In connection with the closing, the seller will enter into long-term lease agreements for all properties. In 2022, the seller had revenues exceeding SEK 150 billion and more than 50,000 employees. The properties comprise a total lettable area of 69,000 square metres and 1,460,000 square metres of freehold land. The properties have been developed with light industrial premises with associated offices, parking and outdoor storage. The properties are located in western France with presence in cities such as Bordeaux, Toulouse and Rennes. Sagax's investment amounts to the equivalent of SEK 930 million including transaction costs. The rental income amounts to the equivalent of SEK 70 million per year and is fully indexed to ILAT, a standard index for commercial leases in France. The occupancy rate is 100%. The average lease term is 11.7 years. The tenant has a unilateral right to extend the lease terms by up to 30 years. The tenant is responsible for all operating costs in addition to the rent. Sagax is responsible for the long-term maintenance of the properties. In France, municipalities have a right of first refusal regarding property transactions. Necessary approvals are expected to be obtained and closing is expected to take place during the end of the fourth quarter of 2023. The acquisition will be reported in Sagax's segment France. Sagax has, subject to certain conditions, agreed on an extension of the above sale- and leaseback transaction. The extension would represent an additional investment of SEK 485 million on similar terms and conditions and would be announced separately.
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, 27 October 2023 AB SAGAX (publ) Corporate Registration Number 556520-0028
Chairman of the Board Board member Board member
Staffan Salén Johan Cederlund Filip Engelbert
David Mindus Johan Thorell Ulrika Werdelin CEO and Board member Board member Board member
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 27 October 2023 at 2:30 p.m. CEST.
We have reviewed the condensed interim report for AB Sagax as at 30 September 2023 and for the nine months period then ended. The Board of Directors and the Managing Director are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.
We conducted our review in accordance with the International Standard on Review Engagements, ISRE 2410 Review of Interim Financial Statements Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and other generally accepted auditing standards in Sweden.
The procedures performed in a review do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act regarding the Group, and in accordance with the Swedish Annual Accounts Act regarding the Parent Company.
Stockholm, 27 October 2023 Ernst & Young AB
Jonas Svensson Authorised Public Accountant
The financial calendar is available at www.sagax.se.
| Year-end Report 2023 | 22 February 2024 |
|---|---|
| Annual General Meeting 2024 | 8 May 2024 |
| Interim Report January – March 2024 | 8 May 2024 |
| Interim report January – June 2024 | 15 July 2024 |
| Interim report January – September 2024 | 25 October 2024 |
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 after dilution |
Profit before tax adjusted for items not included in cash flow less tax paid in relation to the weighted average number of Class A and B shares after dilution. Dividends on Class D 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 attributable 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 APM. |
| Earnings per Class A and B share |
Profit in relation to the weighted 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. |
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 in the Net debt/EBITDA KPI which illustrates 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 utilisation 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. |
The KPI shows the owner's share of equity. |
| Equity per Class D share | Equity at the end of the period as a percentage of the number of common shares at the end of the period. Equity is restricted to SEK 35.00 per Class D share. |
The KPI shows the owner's share of equity. |
| EURIBOR | EURIBOR is short for Euro Interbank Offered Rate. It measures the average rate at which a panel of European banks borrow wholesale funds from one another in the unsecured money market. |
Not an APM. |
| 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 interest-bearing loans. |
Not an APM. |
| Interest coverage ratio | Profit from property management, excluding profit from property manage ment from joint ventures and associated companies but including dividends from joint ventures and associated companies, after reversal of financial expenses in relation to financial expenses (including lease expenses). |
The KPI shows financial risk. |
| Interest coverage ratio, EMTN programme |
Profit from property management after reversal of financial income and expenses 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 in the same currency. The swap entails that one party exchanges its floating interest 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 APM. |
| 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 comparisons with EPRA NAV. |
| Key performance indicators | Description | Reason for alternative performance measure |
|---|---|---|
| Net debt | Interest-bearing liabilities less interest-bearing assets, cash and cash equivalents, and listed instruments. |
The KPI shows the Group's indebtedness. |
| Net debt according to EMTN programme |
Financial indebtedness less listed shares and cash and cash equivalents. | The KPI shows the Group's indebtedness. |
| Net debt according to EMTN programme/Total assets |
Financial indebtedness less listed shares 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 instruments as a percentage of total assets. |
The KPI shows financial risk. |
| Net investments | The net of property acquisitions and investments in the existing property portfolio, as well as sales of properties. |
The KPI shows the investment volume. |
| Occupancy rate by area | Area let 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 management per Class A and B share after dilution |
Profit from property management for the period reduced by dividends on Class D shares divided by the weighted weighted 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 APM. |
| 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 proper ties and properties 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 key performance indicator shows the Group's income potential. |
| Return on equity | Profit for the period, recalculated to 12 months, as a percentage of aver age equity (opening and closing balances) divided by 2 for the period. |
The KPI shows how shareholders' capital yields interest during the period. |
| Return on total capital | Profit from property management, recalculated to 12 months, 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 yield | Net operating income (including property administration) according to current earnings capacity less 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 central administration costs are taken into account. |
| Run rate EBITDA | Net operating income according to current earnings capacity less central administration costs plus dividends received from joint ventures and associ ated companies rolling 12 months. |
Sagax uses EBITDA in the Net debt/run rate EBITDA KPI which illustrates financial risk. |
| 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 (Stockholm Interbank Offered Rate) is a daily reference rate calculated on the average interest rates that banks offer each other for lending in SEK. |
Not an APM. |
| 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 property portfolio Total of adjusted net operating income and unrealised changes in property value during the period as a percentage of the closing property value adjusted for unrealised changes in value for the period. |
The KPI shows earnings generation and value growth for the properties for a period. |
|
| 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. |
| 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 prop erty owner. These include operating expenses, maintenance, property tax, site leasehold fees, insurance, property caretaking, etc. |
Not an APM. |
| Yield | Net operating income for the period (including property administration) less site leasehold fees, recalculated to 12 months, adjusted for the holding periods of the properties during the period and recalculated to the current exchange rates on the balance sheet date 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 central administration costs are taken into account. |
| Amounts in SEK M unless otherwise stated |
2023 Jan-Sep |
2022 Jan-Sep |
2022 Jan-Dec |
|---|---|---|---|
| Cash flow per Class A and B share | |||
| Profit before tax | 561 | 3,064 | 3,305 |
| Items not affecting cash flow | 2,300 | –612 | –141 |
| Tax paid Dividends attributable to Class |
–154 | –150 | –149 |
| D shares | –189 | –189 | –253 |
| Cash flow | 2,518 | 2,113 | 2,762 |
| Cash flow per Class A and B | |||
| share after dilution, SEK | 7.81 | 6.64 | 8.68 |
| Debt ratio | |||
| Interest-bearing liabilities | 31,846 | 31,900 | 32,294 |
| Total assets | 73,505 | 70,918 | 71,831 |
| Debt ratio | 43% | 45% | 45% |
| Earnings per Class A and B share1) | |||
| Profit after tax | 420 | 2,445 | 2,718 |
| Dividends attributable to Class D shares |
–189 | –189 | –253 |
| Adjusted profit after tax | 231 | 2,256 | 2,465 |
| Earnings per Class A and B share | |||
| after dilution, SEK | 0.72 | 7.09 | 7.75 |
| EBITDA rolling 12 months | |||
| Net operating income | 3,392 | 2,914 | 3,032 |
| Central administration | –185 | –158 | –174 |
| Dividends from joint ventures and | |||
| associated companies | 633 | 564 | 577 |
| EBITDA | 3,840 | 3,320 | 3,435 |
| Economic occupancy rate | |||
| Contractual annual rent | 4,411 | 3,880 | 4,024 |
| Rental value | 4,617 | 4,048 | 4,195 |
| Economic occupancy rate | 96% | 96% | 96% |
| Equity/assets ratio | |||
| Equity | 35,130 | 33,092 | 33,463 |
| Total assets | 73,505 | 70,918 | 71,831 |
| Equity/assets ratio | 48% | 47% | 47% |
| Equity per Class A and B share | |||
| Equity | 35,130 | 33,092 | 33,463 |
| Equity attributable to Class D shares |
–4,419 | –4,419 | –4,419 |
| Equity attributable to Class A and | |||
| B shares | 30,711 | 28,673 | 29,044 |
| No. of shares | 328,334,655 318,020,017 318,020,017 | ||
| No. of shares after dilution | 328,481,324 318,379,761 318,459,519 | ||
| Equity per Class A and B share, SEK | 93.53 | 90.16 | 91.33 |
| Equity per Class A and B share | |||
| after dilution, SEK | 93.49 | 90.06 | 91.20 |
| Amounts in SEK M unless otherwise stated |
2023 Jan-Sep |
2022 Jan-Sep |
2022 Jan-Dec |
|---|---|---|---|
| Interest coverage ratio | |||
| Profit from property management | 2,972 | 2,530 | 3,339 |
| Reversal of profit from property management joint ventures and |
|||
| associated companies | –698 | –606 | –766 |
| Dividends from joint ventures and associated companies |
589 | 534 | 577 |
| Financial expenses incl leases | 534 | 374 | 520 |
| Adjusted profit from property man agement before financial expenses |
3,396 | 2,832 | 3,670 |
| Interest coverage ratio | 6.4x | 7.6x | 7.1x |
| Interest coverage ratio, EMTN programme | |||
| Profit from property management | 2,972 | 2,530 | 3,339 |
| Net financial items | 352 | 230 | 285 |
| Profit from property management before net financial items |
3,324 | 2,760 | 3,624 |
| Interest coverage ratio | 9.4x | 12.0x | 12.7x |
See page 15.
| Interest-bearing liabilities | 31,846 | 31,900 | 32,294 |
|---|---|---|---|
| Listed shares in fixed assets2) | –5,252 | –2,619 | –3,141 |
| Listed shares in current assets | –31 | –3,168 | –3,786 |
| Cash and cash equivalents | –25 | –115 | –76 |
| Net debt according to EMTN programme |
26,537 | 25,998 | 25,291 |
| Net debt according to EMTN programme |
26,537 | 25,998 | 25,291 |
|---|---|---|---|
| Total assets | 73,505 | 70,918 | 71,831 |
| Net debt according to EMTN programme/Total assets |
36% | 37% | 35% |
| Net debt/EBITDA | |||
| Net debt | 25,082 | 25,154 | 24,364 |
| EBITDA rolling 12 months | 3,840 | 3,320 | 3,435 |
| Net debt/EBITDA | 6.5x | 7.6x | 7.1x |
| Net debt/run rate EBITDA |
| Net debt | 25,082 | 25,154 | 24,364 |
|---|---|---|---|
| EBITDA, run rate | 4,090 | 3,602 | 3,722 |
| Net debt/EBITDA run rate | 6.1x | 7.0x | 6.5x |
| Net debt/Total assets | |||
| Net debt | 25,082 | 25,154 | 24,364 |
| Total assets | 73,505 | 70,918 | 71,831 |
| Net debt/Total assets | 34% | 35% | 34% |
1) IFRS performance measure. 2) Pertains to listed shares in companies recognised as associated companies. Associated companies are recognised in the balance sheet pursuant to the equity method.
| Amounts in SEK M unless otherwise stated |
2023 Jan-Sep |
2022 Jan-Sep |
2022 Jan-Dec |
|---|---|---|---|
| Net asset value | |||
| Equity | 35,130 | 33,092 | 33,463 |
| Equity attributable to Class D shares |
–4,419 | –4,419 | –4,419 |
| Reversal of derivatives | –23 | –12 | –14 |
| Reversal of deferred tax, net | 3,765 | 4,040 | 3,990 |
| Reversals due to joint ventures | 1,202 | 931 | 930 |
| Net asset value | 35,654 | 33,632 | 33,950 |
| NAV per Class A and B share after dilution, SEK |
108.54 | 105.63 | 106.61 |
| Occupancy rate by area | |||
| Contracted area, '000s sqm | 4,004 | 3,863 | 3,719 |
| Total lettable area, '000s sqm | 4,170 | 4,036 | 3,895 |
| Occupancy rate by area | 96% | 96% | 95% |
| Profit from property management | |||
| Profit after tax | 420 | 2,445 | 2,718 |
| Tax | 153 | 1,020 | 937 |
| Changes in value | 2,399 | –935 | –316 |
| Profit from property management | 2,972 | 2,530 | 3,339 |
| Profit from property management per Class A and B share after dilution | |||
| Profit from property management | 2,972 | 2,530 | 3,339 |
| Dividends attributable to Class D shares |
–189 | –189 | –253 |
| Adjusted profit from property management |
2,782 | 2,341 | 3,086 |
| Average no. of Class A and B shares after dilution |
322,182,053 318,321,007 318,301,177 | ||
| Profit from property management per Class A and B share after dilution, SEK |
8.64 | 7.35 | 9.70 |
| Profit from property management per Class A and B shares, rolling 12 months |
|||
| Profit from property management | 3,781 | 3,238 | 3,339 |
| Dividends attributable to Class D shares |
–253 | –253 | –253 |
| Adjusted profit from property management |
3,528 | 2,985 | 3,086 |
| Average no. of Class A and B shares after dilution |
321,250,698 318,239,933 318,301,177 | ||
| Profit from property management per Class A and B share after dilution, SEK |
10.98 | 9.38 | 9.70 |
| Profit from property management per Class A and B share, |
|||
| preceding period Annual growth rate, % |
9.38 17% |
7.66 22% |
7.99 21% |
| Rental revenue, comparable portfolios | |||
| Rental revenue | 3,160 | 2,725 | N/A |
| Acquired and sold properties | –298 | –205 | N/A |
| Currency adjustment1) | – | 168 | N/A |
| Rental revenue, comparable port folios excluding currency effects |
2,863 | 2,688 | N/A |
1) The preceding period has been adjusted so that the exchange rate is the same as in the current period.
| Amounts in SEK M unless otherwise stated |
2023 Jan-Sep |
2022 Jan-Sep |
2022 Jan-Dec |
|---|---|---|---|
| Return on equity | |||
| Profit after tax Addition for translation to annual |
420 | 2,445 | 2,718 |
| value | 140 | 815 | – |
| Adjusted profit after tax | 560 | 3,260 | 2,718 |
| Average equity | 34,296 | 32,086 | 32,272 |
| Return on equity | 1.6% | 10.2% | 8.4% |
| Return on total capital | |||
| Profit from property management | 2,972 | 2,530 | 3,339 |
| Addition for translation to annual value |
991 | 843 | – |
| Financial expenses | 534 | 374 | 520 |
| Addition for translation to annual | |||
| value | 178 | 125 | – |
| Profit before financial expenses | 4,674 | 3,872 | 3,859 |
| Average total capital | 72,668 | 66,676 | 67,133 |
| Return on total capital | 6.4% | 5.8% | 5.7% |
| Run rate EBITDA | |||
| Net operating income according | |||
| to current earnings capacity | 3,642 | 3,196 | 3,319 |
| Central administration | –185 | –158 | –174 |
| Dividends from joint ventures and | |||
| associated companies | 633 | 564 | 577 |
| Run rate EBITDA | 4,090 | 3,602 | 3,722 |
| Run rate yield | |||
| Net operating income according to current earnings capacity |
3,642 | 3,196 | 3,319 |
| Less site leasehold fees | –30 | –24 | –25 |
| Adjusted net operating income | 3,612 | 3,172 | 3,294 |
| Carrying amounts of properties | 56,668 | 54,350 | 52,682 |
| Run rate yield | 6.4% | 5.8% | 6.3% |
| Secured liabilities/Total assets | |||
| Secured liabilities | 3,385 | 1,347 | 1,895 |
| Total assets | 73,505 | 70,918 | 71,831 |
| Secured liabilities/Total assets | 5% | 2% | 3% |
| Surplus ratio | |||
| Net operating income | 2,621 | 2,262 | 3,032 |
| Rental revenue | 3,160 | 2,725 | 3,696 |
| Surplus ratio | 83% | 83% | 82% |
| Yield | |||
| Net operating income | 2,621 | 2,262 | 3,032 |
| Less site leasehold fees | –21 | -18 | –25 |
| Addition for translation to annual | |||
| value | 867 | 748 | – |
| Holding adjustment, acquisitions/divestments |
129 | 36 | –77 |
| Currency translation to closing | |||
| rate Adjusted net operating income |
4 3,600 |
94 3,122 |
112 3,042 |
| Carrying amounts of properties | 56,668 | 54,350 | 52,682 |
| Yield | 6.4% | 5.7% | 5.8% |
AB Sagax is a property company whose business concept is to invest in commercial properties, primarily in the warehouse
and light industrial segment. Sagax's property holdings at 30 September 2023 amounted to 4,170,000 square metres, distributed between 811 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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