Quarterly Report • Apr 26, 2017
Quarterly Report
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Wihlborgs' Interim report
Rental income increased by 9 percent to SEK 540 million (497)
Operating surplus increased by 9 percent to SEK 388 million (355)
Income from property management increased by 10 percent to SEK 261 million (238)
Result for the period amounts to SEK 289 million (202), corresponding to earnings per share of SEK 3.76 (2.63)
| Group key figures, SEK m | 2017 | 2016 |
|---|---|---|
| Jan–Mar | Jan–Mar | |
| Rental income | 540 | 497 |
| Operating surplus | 388 | 355 |
| Income property management | 261 | 238 |
| Changes in value of properties | 56 | 303 |
| Changes in value of derivatives | 54 | -300 |
| Result for the period | 289 | 202 |
| Earnings per share, SEK | 3.76 | 2.63 |
| Surplus ratio, % | 72 | 71 |
| Equity/assets ratio, % | 34.8 | 30.6 |
| Occupancy rate, %* | 92 | 91 |
*) Excluding Projects & Land.
See pages 17–18 for definitions of key figures.
See pages 17–18 for definitions and outcome.
Kursutveckling 2012-01-01 – 2013-06-28 01-01-17 – 31-03-17
Production Wihlborgs. Photographer Peter Westrup, Felix Gerlach, Wihlborgs.
| CEO's/market comments | 04 |
|---|---|
| Income, expenses and profit | 06 |
| Assets | 08 |
| Liabilities and Equity | 12 |
| Financial reports | 14 |
| Key figures | 17 |
| Interim report Jan – Jun | 10 Jul 2017 |
|---|---|
| Interim report Jan – Sep | 23 Oct 2017 |
Wihlborgs' interim reports are distributed electronically. The Annual Report is printed in Swedish and English and will be sent to any shareholders notifying the Company that they wish to receive it in printed form.
For further information, please contact: Anders Jarl, CEO. Telephone +46 (0)40-690 57 10, +46 (0)733-71 17 10 Arvid Liepe, CFO. Telephone +46 (0)40-690 57 31, +46 (0)733-71 17 31
Wihlborgs Fastigheter AB (publ) is a property company that focuses on commercial properties in the Öresund region. Its property portfolio is located in Malmö, Lund, Helsingborg and Copenhagen. In Malmö, Lund and Helsingborg Wihlborgs is the leading property company.
The book value for the Company's properties totals SEK 33.2 billion. The annual rental value of the properties is SEK 2.4 billion. Wihlborgs shares are quoted on the Large Cap List of NASDAQ Stockholm.
2016 was the strongest year in the history of Wihlborgs. 2017 has started even stronger and Wihlborgs can again report positive results and a stronger balance sheet for the first quarter.
Rental income grew to SEK 540 million and income from property management to SEK 261 million, up nine and ten percent respectively.
The rental market remains very strong. Net lettings were up SEK 23 million for the quarter. We have leased about 60 percent of the new-build project Sirius 3 in the Nyhamnen area in Malmö. 70 percent of the Posthornet 1 project, which we are building in Lund, is leased and we have noted strong demand in both of these projects, which will be complete and fully let at the end of 2017 and in early 2018 respectively. The project portfolio was expanded during the quarter by the acquisition of the Bure 2 property in
Hyllie, Malmö, where we plan to build approximately 6,800 m2 of office space. We will also extend the Dockan property in Malmö, where Tyréns has its office. Add to this the 9,000 m2 we are building at the Gimle 1 property in Hyllie, where tenants will include the Swedish Customs, and the 4,000 m2 we are adding to Helsingborg's district court at Polisen 4 in Helsingborg, then we have the foundation for continued healthy growth.
The average interest expense is largely unchanged compared with the previous year end. In January, we raised SEK 500 million via Svensk FastighetsFinansiering with a fixed-interest rate of 0.50 percent for two years and in March we issued our own two-year bonds for SEK 400 million with a variable interest rate at 1.10 percent over Stibor. We feel that access to financing remains good, both via the banking system and via the capital market.
By virtue of our lettings, our investments and acquisitions, the value of our properties increased to SEK 33.2 billion. Our improved results are also evident in an even stronger balance sheet. At the end of the quarter, our equity/assets ratio amounted to 34.8 percent and the loan-to-value ratio to 53.0 percent. A strong balance sheet offers us both stability and an opportunity to leverage future business opportunities. Our EPRA NAV per share is now SEK 199.
I am also pleased to see that our sustainability work is yielding results. Despite growth, our CO2 emissions are decreasing in absolute terms, and per square metre these fell by 35 percent in 2016 compared with the preceding year.
With the continuing positive economic development in the Öresund region, an attractive project portfolio and a stable financial base, we also see excellent opportunities to generate profitable growth moving forward.
Anders Jarl, CEO
Globally, there are signs of a stronger economic upturn in developing economies. Global growth is expected to reach 3.4 percent for 2017 and 3.6 percent for 2018 according to the Swedbank Economic Outlook from 6 April 2017. Risks are primarily political and geopolitical. Growth in emerging markets is supported by commodities and reforms, and though inflationary pressure is on the increase, it will remain low in many regions. Sweden's growth is expected to slow slightly and reach 2.8 percent for 2017 and 2.4 percent for 2018. The labour market is strong with a high level of employment growth. Sweden has strong government finances but its structural policy is inadequate and in considerable need of long-term structural reform. In Denmark, growth is expected to reach 1.6 percent for 2017 and 1.3 percent for 2018.
Lower central wage agreements will limit the rise in inflation and mean the Riksbank remains in a difficult situation. A tentative increase in interest rates has begun as foreign central banks slowly retreat. This will support the Riksbank in initiating its cautious turnabout. Swedbank expects the first raise in interest rates to take place in spring 2018 and that a zero rate will not be reached until the end of 2018.
According to Datscha, transaction volume in the property market for the first quarter exceeded volume during the same period in 2016 by as much as 18 percent. Metropolitan areas account for almost two-thirds of transaction volume. There are plenty of active buyers and volume is limited by market supply, with a shortage of objects to acquire. There is no sign of a slackening in the flow of capital as the Riksbank's signals indicate continued low interest-rate levels. The inflow of foreign capital increased to 31 percent from 25 percent compared with the year-earlier period. Uncertainty in European markets, not least in the euro area and the UK, strengthens the perception among foreign investors that Swedish properties are a safe haven.
Comparative figures for income statement items relate to values for the corresponding period 2016 and balance sheet items as of 31-12-2016.
Rental income was SEK 540 million (497). Other revenues from property management was SEK 1 million (1) relating to payments for early lease termination.
The increase in rental income is attributable to property acquisitions, renegotiations, new lettings and indexation in contracts.
The total growth in rental income was 9 percent compared with the corresponding period 2016.
The occupancy rate for managed properties, is 92 percent which remains unchanged compared with previous year-end.
During the period new leases were signed to a value of SEK 62 million (37) on an annualized basis. Lease terminations totalled SEK 39 million (24). This represents a net letting of SEK 23 million (13).
SAAB Kockums chose to keep Wihlborgs as landlord and moved its office to new premises in our portfolio at Dockan, Malmö.
Total property costs amounted to SEK 153 (143) million. The year's first quarter is the most expensive. This is because the cost of snow clearance, electricity and heating is at its highest during the winter.
The historical summary at the bottom of page 14 illustrates how costs vary over the different quarters of the year.
The operating surplus including other income amounted to SEK 388 million (355). Excluding payments for early lease termination, the operating surplus totalled SEK 387 million (354), representing a surplus ratio of 72 percent (71).
The costs for central administration were SEK 13 million (12).
Net interest totalled SEK -114 million (-105), of which interest income accounted for SEK 3 million (4).
Interest expenses, for the period were SEK 117 million (109). The increase in interest expense is mainly due to increased borrowings.
At the end of the period, the average interest rate, including the cost for credit agreements, was 2.83 percent, compared with 2.80 percent at year-end.
Income from property management including other income amounted to SEK 261 million (238). Excluding payments for early lease termination, the income from property management amounted to SEK 260 million (237).
The pre-tax profit, i.e. after value changes on properties and derivatives, was SEK 371 million (241). Changes in value of properties amounted to 56 Mkr (303) and value changes on derivatives amounted to SEK 54 million (-300).
The profit after taxes was SEK 289 million (202).
Property Manager Erik Elmeskär, who was recruited as a trainee in 2016, attended the Bokkorridoren recruitment fair where he talked about our trainee programme.
The summaries below are based on Wihlborgs' property portfolio as of 31 March 2017. Rental income relates to contracted rental income on an annual basis as of 1 April 2017.
The surplus ratio is based on the properties' earning capacity on an annual basis based on rental income for April 2017, operating and maintenance costs, property administration on a rolling twelve-month basis, property tax and leasehold rent.
Wihlborgs' property portfolio consists of commercial properties in the Öresund region, located in Malmö, Helsingborg, Lund and Copenhagen. The property portfolio 31 March 2017 consisted of 286 properties (282) with a lettable area of 1,858,000 m2 (1,849,000). Ten of the properties (10) are leasehold rights. The properties' carrying amount was SEK 33,217 million (32,755), which corresponds to the estimated market value. The total rental value was SEK 2,358 million (2,349) and the contracted rental income on annual basis SEK 2,155 million (2,137). The economic occupancy rate for Office/ Retail properties was 93 percent (93) and for Industrial/Warehousing properties 89 percent (88). The rental value for Office/Retail properties represented 76 percent and Industrial/Warehousing properties 23 percent of the total rental value.
The operating surplus from managed properties, excluding property administration and Projects & Land, is SEK 1,712 million (1,697) which with a carrying amount of SEK 31,628 million (31,449) corresponds to a direct return of 5.4 percent (5.4). Broken down by property category, this is 5.0 percent (5.0) for Office/Retail and 7.4 percent (7.3) for Industrial/Warehousing.
Lautrupvang 8 in Ballerup, Copenhagen.
According to an internal valuation, with external support from Malmöbryggan Fastighetsekonomi, of the properties on 31 March 2017, their value had risen by SEK 56 million (303).
Fair value is determined by a yield-based method. The value is considered to correspond to the yield value that is calculated from normally five-year cash flow analyses. The value of newbuild projects in progress is determined as the value as if the project were complete, less deduction of the remaining cost. Undeveloped land is valued according to the comparable sales method.
As of 31 March 2017, the carrying amount for the properties was SEK 33,217 million.
| Lund | |
|---|---|
| 23% 1% 17% Changes |
13% Group total, SEK m |
| Carrying amount 1 January 2017 | 32,755 |
| Acquisitions Rental value |
178 |
| Investments per property |
Rental value 249 per area |
| category Properties sold |
-11 |
| Change in value | 56 |
| Currency translations | -10 |
| Carrying amount 31 March 2017 76% 25% |
33,217 45% |
Investments in the property portfolio totalled SEK 249 million (268).
Approved investments in ongoing projects amount to SEK 1,755 million, of which SEK 611 million had been invested at end of the period.
During the first quarter, a decision was taken on the new construction of 6,800 m2 office on the Bure 2 property in Malmö.
The Groups liquid assets totalled SEK 349 million (454) including unutilised overdraft facilities.
Wihlborgs' office at Knutpunkten in Helsingborg has a view over the Öresund strait.
| Property | Category of use |
Municipality | Completion date |
Lettable area, m2 |
Occupancy rate, % |
Estimated investment,SEK m |
Expended 310317, SEK m |
|---|---|---|---|---|---|---|---|
| Hordaland 1 | Office/Retail | Malmö | Q3 2017 | 15,000 | - | 121 | 54 |
| Sirius 3 | Office/Retail | Malmö | Q4 2017 | 7,000 | 60 | 250 | 156 |
| Posthornet 1 | Office/Retail | Lund | Q1 2018 | 11,000 | 70 | 347 | 109 |
| Kranen 9 | Office/Retail | Malmö | Q4 2018 | 2,200 | 70 | 114 | 0 |
| Gimle 1 | Office/Retail | Malmö | Q1 2019 | 9,000 | 70 | 392 | 15 |
| Polisen 4 | Office/Retail | Helsingborg | Q2 2019 | 4,000 | 100 | 182 | 49 |
| Total | 48,200 | 1,406 | 383 |
| Area | Office, m2 |
Retail, m2 |
Ind./Ware- housing, m2 |
Education/, Health care, m2 |
Misc., m2 |
Total, m2 |
Share, % |
|---|---|---|---|---|---|---|---|
| Malmö | 352,107 | 47,183 | 265,539 | 34,254 | 14,6011 | 713,683 | 38 |
| Helsingborg | 155,139 | 59,937 | 293,529 | 18,721 | 10,6822 | 538,008 | 29 |
| Lund | 122,821 | 11,092 | 29,625 | 31,924 | 8,6263 | 204,088 | 11 |
| Copenhagen | 252,263 | 2,543 | 76,198 | 12,898 | 58,7584 | 402,660 | 22 |
| Total | 882,330 | 120,755 | 664,891 | 97,797 | 92,667 | 1,858,439 | 100 |
| Share, % | 47 | 7 | 36 | 5 | 5 | 100 |
1) Includes 10,275 m2 hotel.
2) Includes 1,819 m2 residential.
3) Includes 8,215 m2 hotel.
4) Includes 38,848 m2 data center.
| Area/ property category |
Number of properties |
Area, m2 thousand |
Carrying amount, SEKm |
Rental value, SEKm |
Rental value SEK/m2 |
Economic occupancy rate, % |
Rental income, SEKm |
Operating surplus incl. property admin., SEKm |
Surplus ratio, % |
Operating surplus excl. property admin., SEKm |
Direct return, excl. property admin., % |
|---|---|---|---|---|---|---|---|---|---|---|---|
| MALMÖ | |||||||||||
| Office/Retail | 46 | 422 | 12,987 | 823 | 1,950 | 93 | 763 | 578 | 76 | 601 | 4.6 |
| Industrial/Warehousing | 50 | 256 | 2,022 | 207 | 806 | 90 | 186 | 137 | 74 | 145 | 7.2 |
| Projects & Land | 27 | 35 | 1,149 | 21 | 612 | - | 4 | 0 | - | 1 | - |
| Total Malmö | 123 | 714 | 16,158 | 1,051 | 1,473 | 91 | 953 | 715 | 75 | 748 | 4.6 |
| HELSINGBORG | |||||||||||
| Office/Retail | 28 | 169 | 4,201 | 299 | 1,765 | 92 | 275 | 202 | 73 | 210 | 5.0 |
| Industrial/Warehousing | 61 | 369 | 2,716 | 299 | 812 | 87 | 261 | 186 | 71 | 200 | 7.4 |
| Projects & Land | 10 | - | 59 | 0 | - | - | 0 | 0 | - | 0 | - |
| Total Helsingborg | 99 | 538 | 6,977 | 598 | 1,112 | 90 | 536 | 388 | 72 | 410 | 5.9 |
| LUND | |||||||||||
| Office/Retail | 21 | 184 | 5,590 | 398 | 2,158 | 93 | 370 | 276 | 75 | 304 | 5.4 |
| Industrial/Warehousing | 4 | 20 | 132 | 14 | 705 | 96 | 13 | 10 | 77 | 11 | 8.3 |
| Projects & Land | 2 | - | 316 | 0 | - | - | 0 | 0 | - | 0 | - |
| Total Lund | 27 | 204 | 6,038 | 412 | 2,018 | 93 | 384 | 286 | 75 | 315 | 5.2 |
| COPENHAGEN | |||||||||||
| Office/Retail | 29 | 349 | 3,758 | 275 | 786 | 95 | 261 | 212 | 81 | 222 | 5.9 |
| Industrial/Warehousing | 5 | 32 | 222 | 22 | 673 | 96 | 21 | 18 | 84 | 19 | 8.5 |
| Projects & Land | 3 | 21 | 65 | - | - | - | - | 0 | - | 0 | - |
| Total Copenhagen | 37 | 403 | 4,045 | 296 | 736 | 95 | 282 | 229 | 81 | 241 | 6.0 |
| Total Wihlborgs | 286 | 1,858 | 33,217 | 2,358 | 1,269 | 91 | 2,155 | 1,618 | 75 | 1,713 | 5.1 |
| Total excluding Projects & Land |
244 | 1,802 | 31,628 | 2,336 | 1,296 | 92 | 2,151 | 1,618 | 75 | 1,712 | 5.4 |
The Origo (Bure 2) project in Hyllie was acquired in the quarter and construction is scheduled to start in the third quarter of 2017.
Four properties were acquired in the first quarter. On 1 March 2017, possession was taken of the Ackumulatorn 17 property in Helsingborg, which was agreed in 2016. The office and warehouse property Benkammen 16 was acquired and possession taken on 10 March 2017. The property comprises a site of 26,000 m² and a building of 6,260 m². The project properties Bure 2 and Gimle 1 were acquired in the quarter as part of the new-build projects Origo and Dungen.
1) Operating surplus from properties acquired and sold that are included in the results for the period.
As of 31 March 2017, equity totalled SEK 11,752 million (11,463) and the equity/assets ratio 34.8 percent (34.3).
The group's interest-bearing liabilities as of 31 March amounted to SEK 17,603 million (17,553) with an average interest rate including costs for credit agreements of 2.83 percent (2.80).
With consideration to the company's net debt of SEK 17.6 billion, as a percentage of property values, the loan-to-value ratio is 53.0 percent (53.6).
The loans' average fixed interest period including effects of derivatives on 31 March 2017, amounted to 4.4 years (4.8). The average loan maturity, including commited credit facilities, amounted to 5.2 years (5.9).
| Interest maturity | Loan maturity | |||
|---|---|---|---|---|
| Matures, year | Loan amount, SEKm Av. interest rate, % | Credit ag, SEKm Utilised, SEKm | ||
| 2017 | 6,617 | 1.43 | 420 | 420 |
| 2018 | 500 | 0.53 | 4,277 | 3,927 |
| 2019 | 152 | 0.97 | 7,915 | 7,415 |
| 2020 | 0 | 0.00 | 3,724 | 2,415 |
| 2021 | 4,000 | 3.76 | 0 | 0 |
| >2021 | 6,334 | 3.78 | 3,428 | 3,426 |
| Total | 17,603 | 2.77* | 19,764 | 17,603 |
*) Excluding costs for credit agreements.
Wihlborgs use interest rate derivatives in order to reduce the risk level in the loan portfolio. A summary of the terms is shown below.
| Amount, SEK m | Interest, % | Can be closed | End date |
|---|---|---|---|
| Cancellable swaps* | |||
| 500 | 2.63 | quarterly | 2026 |
| 500 | 2.72 | quarterly | 2026 |
| 500 | 2.34 | quarterly | 2026 |
| 500 | 2.58 | quarterly | 2027 |
| 1,000 | 1.96 | quarterly | 2021 |
| Interest-rate swaps | |||
| 2,000 | 2.70 | 2021 | |
| 1,000 | 2.04 | 2022 | |
| 1,000 | 2.01 | 2022 | |
| 1,000 | 3.40 | 2024 | |
| 500 | 3.32 | 2024 | |
| Threshold swap | |||
| 1,000 | 3.07 | Threshold 4.75 | 2021 |
*) Cancellable at the initiative of the counterpart.
As a result of higher market rates, the deficit in Wihlborgs' interest rate derivative portfolio decreased to SEK 1,090 million. The change in value for the interest rate derivatives does not affect the cash flow. When the term of the derivative expires, the value is always zero.
Wihlborgs' interest derivatives are recognized at fair value in accordance with IAS 39. The cancellable swaps are classified at level 3 in accordance with IFRS 13. The change during the year for these swaps amounts to SEK 11 million. The remaining swaps are classified at level 2 in accordance with IFRS 13.
During the first quarter, Wihlborgs borrowed SEK 500 million via Svensk FastighetsFinansiering by issuing bonds with final maturity in February 2019. In addition, two-year bonds of SEK
400 million have been issued under Wihlborg's MTN program.
On 10 March, the first earth was turned at the Polisen 4 property, where Wihlborgs is extending Helsingborg's district court by 4,000 m2 and redeveloping 5,000 m2.
At the period end Wihlborgs' number of full-time employees was 138 (132), 54 of whom are property caretakers.
There are 62 employees in Malmö, 26 in Helsingborg, 17 in Lund and 33 in Copenhagen. The average age is 44 and the proportion of women is 36 percent.
The parent company owns no properties, but deals with questions relating to the stock market and joint Group functions for administration, management and borrowing. The parent company's turnover is mostly related to the billing of services to Group companies.
The parent company has invested SEK 124 (48) in shares in subsidiaries, including shareholders' contributions, during the period.
The parent company's income statement and balance sheet are found on page 16.
A description of all participations held by Wihlborgs in other companies will be found on pages 104-105 in the Company's 2016 annual report.
The largest shareholder in Wihlborgs is Erik Paulsson with family, with 10.3 percent of the shares outstanding.
Shares held by owners registered abroad accounted for 37 percent of the total. The number of shareholders was 24,339.
| thousand | Number of shares, Proportion of equity and votes, % |
|
|---|---|---|
| Erik Paulsson with family, | ||
| privately and via company | 7,884 | 10.3 |
| SEB funds | 3,601 | 4.7 |
| Länsförsäkringar funds | 3,390 | 4.4 |
| SHB funds | 2,230 | 2.9 |
| Qviberg family | 2,162 | 2.8 |
| Bank of Norway | 2,147 | 2.8 |
| Nordea funds | 991 | 1.3 |
| DnB Carlson funds | 848 | 1.1 |
| Tibia Konsult AB | 812 | 1.0 |
| Odin Ejendom | 745 | 1.0 |
| Other shareholders reg. in Sweden | 26,271 | 34.2 |
| Other shareholders reg. abroad | 25,776 | 33.5 |
| Total outstanding shares | 76,857 | 100.0 |
Wihlborgs operations, financial status and profit are affected by a number of risk factors. Risks that have a decisive influence on the Group's profit trend are variations in rental income, interest rate changes, costs, property valuations and taxes. There are also risks relating to cash flow and borrowing. .
There is a comprehensive description of the risks facing the Group on pages 75–79 and 96–99 in the Company's 2016 annual report.
Wihlborgs complies with International Financial Reporting Standards (IFRS) issued by International Accounting Standards Board (IASB), as well as interpretations issued by the IFRS and approved by the European Union. The interim report has been prepared in accordance with IAS 34 Interim Financial Reporting and the Annual Accounts Act. Information in accordance with IAS 34 Interim Financial Reporing are submitted both in notes and elsewhere in the interim report.
Accounting policies and calculation methods are identical to those applied in Wihlborgs' latest Annual Report.
Furthermore, the Group applies the Swedish Financial Accounting Standards Council's recommendation RFR 1, Supplementary Rules for Consolidated Financial Statements. The Parent Company applies RFR 2.
The Financial Statements can be found on pages 14–18.
Malmö 26 April 2017 Wihlborgs Fastigheter AB (publ) Anders Jarl, CEO
This Interim Report has not been reviewed by the company's auditors.
| SEK m | 2017 Jan–Mar 3 months |
2016 Jan–Mar 3 months |
2016/17 Apr–Mar 12 months |
2016 Jan–Dec 12 months |
|
|---|---|---|---|---|---|
| Rental income | 540 | 497 | 2,073 | 2,030 | |
| Other revenues | 1 | 1 | 5 | 5 | |
| Total income | 541 | 498 | 2,078 | 2,035 | |
| Operating costs | -88 | -82 | -264 | -258 | |
| Repairs and maintenance | -18 | -16 | -78 | -76 | |
| Property tax | -26 | -25 | -97 | -96 | |
| Leasehold rent | -1 | -1 | -5 | -5 | |
| Property administration | -20 | -19 | -83 | -82 | |
| Total propery costs | -153 | -143 | -527 | -517 | |
| Operating surplus | 388 | 355 | 1,551 | 1,518 | |
| Central administration | -13 | -12 | -50 | -49 | |
| Interest income | 3 | 4 | 11 | 12 | |
| Interest expense | -117 | -109 | -467 | -459 | |
| Share in results of joint ventures | 0 | 0 | 13 | 13 | |
| Income from property management | 261 | 238 | 1,058 | 1,035 | |
| Change in value of properties | 56 | 303 | 2,257 | 2,504 | |
| Change in value of derivatives | 54 | -300 | 89 | -265 | |
| Pre-tax profit | 371 | 241 | 3,404 | 3,274 | |
| Current tax | -2 | -5 | -4 | -7 | |
| Deferred tax | -80 | -34 | -337 | -291 | |
| Profit for the period1 OTHER TOTAL PROFIT/LOSS2 |
289 | 202 | 3,063 | 2,976 | |
| Translation differences and hedging | |||||
| for international activities, including tax | 0 | 3 | 11 | 14 | |
| Total comprehensive income for the period1 | 289 | 205 | 3,074 | 2,990 | |
| Earning per share3 | 3.76 | 2.63 | 39.85 | 38.72 | |
| No. of shares at end of the period, thousands | 76,857 | 76,857 | 76,857 | 76,857 | |
| Average no. of shares, thousands | 76,857 | 76,857 | 76,857 | 76,857 |
1) The entire profit/income is attributable to the parent company's shareholders.
2) Refers to records that have been or can be transferred to the result for the period.
3) Key ratios per share have been calculated based on a weighted average number of shares during the period. There are no outstanding subscription options, convertibles or other potential ordinary shares to take into consideration.
| SEKm | Q1 2017 | Q4 2016 | Q3 2016 | Q2 2016 | Q1 2016 | Q4 2015 | Q3 2015 | Q2 2015 |
|---|---|---|---|---|---|---|---|---|
| Rental income | 540 | 525 | 508 | 500 | 497 | 475 | 485 | 480 |
| Other income | 1 | 0 | 3 | 1 | 1 | 11 | 12 | 7 |
| Operating costs | -88 | -72 | -46 | -58 | -82 | -71 | -48 | -58 |
| Repairs and maintenance | -18 | -26 | -14 | -20 | -16 | -20 | -17 | -19 |
| Property tax | -26 | -22 | -25 | -24 | -25 | -24 | -23 | -25 |
| Leasehold rent | -1 | -2 | -1 | -1 | -1 | -1 | -1 | -2 |
| Property administration | -20 | -24 | -19 | -20 | -19 | -22 | -20 | -19 |
| Operating surplus | 388 | 379 | 406 | 378 | 355 | 348 | 388 | 364 |
| Income from property management | 261 | 263 | 279 | 255 | 238 | 232 | 271 | 247 |
| Profit for the period | 289 | 1,306 | 287 | 1,181 | 202 | 935 | 382 | 646 |
| Surplus ratio, % | 71.7 | 72.2 | 79.3 | 75.4 | 71.2 | 70.9 | 77.5 | 74.4 |
| Investment yield, % | 4.7 | 4.8 | 5.3 | 5.1 | 4.9 | 4.9 | 5.8 | 5.7 |
| Equity/assets ratio, % | 34.8 | 34.3 | 32.7 | 32.1 | 30.6 | 30.6 | 29.3 | 29.3 |
| Return on equity, % | 10.0 | 48.3 | 11.5 | 49.9 | 9.0 | 44.5 | 19.7 | 34.8 |
| Earnings per share, SEK | 3.76 | 16.99 | 3.73 | 15.37 | 2.63 | 12.17 | 4.97 | 8.41 |
| Income property management per share, SEK | 3.40 | 3.42 | 3.63 | 3.32 | 3.10 | 3.02 | 3.53 | 3.21 |
| Cash flow per share, SEK | 3.12 | 3.99 | 3.79 | 3.40 | 2.67 | 3.08 | 3.85 | 2.94 |
| EPRA NAV per share, SEK | 198.86 | 194.76 | 177.41 | 172.33 | 162.52 | 155.54 | 142.98 | 134.47 |
| Share price as % EPRA NAV per share | 85.4 | 87.0 | 102.9 | 99.9 | 106.1 | 109.9 | 104.9 | 100.4 |
| Carrying amount of properties | 33,217 | 32,755 | 30,522 | 30,161 | 29,196 | 28,623 | 26,694 | 25,142 |
| Equity | 11,752 | 11,463 | 10,155 | 9,863 | 9,081 | 8,876 | 7,945 | 7,561 |
| Total assets | 33,815 | 33,414 | 31,065 | 30,713 | 29,725 | 29,033 | 27,144 | 25,840 |
See pages 17–18 for Key figures & Definitions.
| SEK m | 31-03-2017 | 31-03-2016 | 31-12-2016 |
|---|---|---|---|
| ASSETS | |||
| Managed properties | 33,217 | 29,196 | 32,755 |
| Other fixed assets | 294 | 249 | 290 |
| Current receivables | 173 | 160 | 117 |
| Liquid assets | 131 | 120 | 252 |
| Total assets | 33,815 | 29,725 | 33,414 |
| EQUITY AND LIABILITIES | |||
| Equity | 11,752 | 9,081 | 11,463 |
| Deferred tax liability | 2,442 | 2,231 | 2,362 |
| Borrowings | 17,603 | 16,376 | 17,553 |
| Derivatives | 1,090 | 1,179 | 1,144 |
| Other long-term liabilities | 53 | 52 | 53 |
| Current liabilities | 875 | 806 | 839 |
| Total equity & liabilities | 33,815 | 29,725 | 33,414 |
| SEK m | Jan–Mar 2017 |
Jan–Mar 2016 |
Jan–Dec 2016 |
|---|---|---|---|
| Total equity at beginning | |||
| of period | 11,463 | 8,876 | 8,876 |
| Equity attributable to parent company's shareholders |
|||
| Opening amount | 11,463 | 8,876 | 8,876 |
| Dividend paid | - | - | -403 |
| Profit for the period | 289 | 202 | 2,976 |
| Other comprehensive income | 0 | 3 | 14 |
| Closing amount | 11,752 | 9,081 | 11,463 |
| Equity attributable to minority shares |
- | - | - |
| Total equity at end of period |
11,752 | 9,081 | 11,463 |
CONSOLIDATED CASH FLOW STATEMENT summary
| CONSOLIDATED SEGMENT REPORTING JAN–MAR | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Property management | Malmö | Helsingborg | Lund | Copenhagen | Total | |||||
| SEK m | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 |
| Revenues | 238 | 224 | 134 | 131 | 97 | 93 | 71 | 49 | 540 | 497 |
| Other revenues | 1 | 1 | 0 | 0 | 0 | 0 | 0 | 0 | 1 | 1 |
| Costs | -69 | -64 | -44 | -45 | -26 | -24 | -14 | -10 | -153 | -143 |
| Operating surplus | 170 | 161 | 90 | 86 | 71 | 69 | 57 | 39 | 388 | 355 |
In the Group's internal reporting, activities are divided into the above segments, which are the same as described in the latest annual report. The total operating surplus shown above corresponds with the operating surplus recorded in the income statement. Revenues includes both rental income and payments for early lease termination.
The difference between the operating surplus of SEK 388 million (355) and the pre-tax profit of SEK 371 million (241) consists of central administration SEK -13 million (-12), net interest SEK -114 million (-105) and changes in value of properties and derivatives SEK 110 million (3).
| SEK m | Jan-Mar | Jan-Mar | Jan-Dec |
|---|---|---|---|
| 2017 | 2016 | 2016 | |
| Income | 35 | 32 | 131 |
| Expenses | -35 | -32 | -138 |
| Operating profits | 0 | 0 | -7 |
| Financial income | 134 | 164 | 1 527 |
| Financial expenses | -117 | -434 | -800 |
| Pre-tax profit | 17 | -270 | 720 |
| Appropriations | 0 | 0 | 56 |
| Tax | -4 | 76 | 89 |
| Profit for the year | 13 | -194 | 865 |
| Other comprehensive income | 0 | 0 | 0 |
| Comprehensive income for the year | 13 | -194 | 865 |
| SEK m | 31-03-2017 | 31-03-2016 31-12-2016 | |
|---|---|---|---|
| Participations in Group companies | 8,596 | 8,670 | 8,472 |
| Receivables from Group companies | 10,358 | 10,018 | 10,432 |
| Other assets | 588 | 586 | 587 |
| Cash and bank balances | 8 | 28 | 152 |
| Total assets | 19,550 | 19,302 | 19,643 |
| Equity | 3,300 | 2,632 | 3,287 |
| Liabilities to credit institutions | 12,671 | 12,753 | 13,091 |
| Derivatives | 1,090 | 1,179 | 1,144 |
| Liabilities to Group companies | 2,297 | 2,573 | 1,988 |
| Other liabilities | 192 | 165 | 133 |
| Total equity and liabilities | 19,550 | 19,302 | 19,643 |
| SEK m | Jan–Mar | Jan–Mar | Apr/Mar | Jan–Dec |
|---|---|---|---|---|
| FINANCIAL | 2017 | 2016 | 2016/17 | 2016 |
| Return on equity, % | 10.0 | 9.0 | 29.4 | 29.3 |
| Return on total capital, % | 5.2 | 8.8 | 11.9 | 12.8 |
| Equity/assets ratio, % | 34.8 | 30.6 | 34.8 | 34.3 |
| Interest coverage ratio, multiple | 3.2 | 3.2 | 3.3 | 3.3 |
| Leverage properties, % | 53.0 | 56.1 | 53.0 | 53.6 |
| Debt/equity ratio, multiple | 1.5 | 1.8 | 1.5 | 1.5 |
| SHARE-RELATED | ||||
| Earnings per share, SEK | 3.76 | 2.63 | 39.85 | 38.72 |
| Earnings per share before tax, SEK |
4.83 | 3.14 | 44.29 | 42.60 |
| Income from property management per share, SEK |
3.40 | 3.10 | 13.77 | 13.47 |
| Cashflow from operations | ||||
| per share, SEK | 3.12 | 2.67 | 14.30 | 13.84 |
| Equity per share I, SEK | 152.91 | 118.15 | 152.91 | 149.15 |
| Equity per share II, SEK | 184.68 | 147.18 | 184.68 | 179.88 |
| EPRA NAV net asset value | ||||
| per share, SEK | 198.86 | 162.52 | 198.86 | 194.76 |
| Market value per share, SEK | 169.90 | 172.40 | 169.90 | 169.40 |
| Dividend per share, SEK | - | - | - | 5.75 |
| Dividend yield, % 1 | - | - | - | 3.4 |
| Total return from share, % 1 | - | - | - | 2.1 |
| P/E-ratio I, multiple | 11.3 | 16.4 | 4.3 | 4.4 |
| P/E-ratio II, multiple | 16.0 | 17.8 | 15.8 | 16.1 |
| Number of shares at the end of period, thousands |
76,857 | 76,857 | 76,857 | 76,857 |
| Average number of shares, thousands |
76,857 | 76,857 | 76,857 | 76,857 |
| PROPERTY-RELATED | ||||
| Number of properties | 286 | 272 | 286 | 282 |
| Carrying amount of properties, SEKm |
33,217 | 29,196 | 33,217 | 32,755 |
| Estimated investment yield, % – all properties |
4.9 | 5.0 | 4.9 | 4.9 |
| Estimated direct return, % – excl project properties |
5.1 | 5.4 | 5.1 | 5.1 |
| Lettable area, m2 | 1,858,439 | 1,752,532 | 1,858,439 1,848,738 | |
| Rental income, SEK per m2 | 1,160 | 1,136 | 1,160 | 1,156 |
| Operating surplus, SEK per m2 | 870 | 835 | 870 | 868 |
| Financial occupancy rate, % | ||||
| - all properties | 91 | 88 | 91 | 91 |
| Financial occupancy rate, % - excl project properties |
92 | 91 | 92 | 92 |
| Estimated surplus ratio, % | 75 | 74 | 75 | 75 |
| EMPLOYEES | ||||
| Number of employees | ||||
| at period end | 138 | 120 | 138 | 132 |
1) Calculated for calendar year only.
The basis for the key financial ratios in ongoing use by Wihlborgs and for which established financial targets apply are shown below. The following financial targets have been established by the Board:
*) Risk-free interest rate is defined as the rate on a 5-year Swedish government bond.
| SEK m | 31-03-2017 | 31-03-2016 | 31-12-2016 | |||
|---|---|---|---|---|---|---|
| Return on equity | ||||||
| Profit for the period | 289 | 202 | 2,976 | |||
| Equity, opening balance | 11,463 | 8,876 | 8,876 | |||
| Equity, closing balance | 11,752 | 9,081 | 11,463 | |||
| Average equity | 11,608 | 8,979 | 10,170 | |||
| Conversion to full-year basis | 4 | 4 | 1 | |||
| Return on equity, % | 10.0 | 9.0 | 29.3 | |||
| Leverage properties | ||||||
| Borrowings | 17,603 | 16,376 | 17,553 | |||
| Carrying amount | ||||||
| investment properties | 33,217 | 29,196 | 32,755 | |||
| Leverage properties, % | 53.0 | 56.1 | 53.6 | |||
| Equity/assets ratio | ||||||
| Equity | 11,752 | 9,081 | 11,463 | |||
| Total assets | 33,815 | 29,725 | 33,414 | |||
| Equity/assets ratio, % | 34.8 | 30.6 | 34.3 | |||
| Interest coverage ratio | ||||||
| Income from property management 261 | 238 | 1,035 | ||||
| Interest expense | 117 | 109 | 459 | |||
| 378 | 347 | 1,494 | ||||
| Interest expense | 117 | 109 | 459 | |||
| Interest coverage ratio, multiple | 3.2 | 3.2 | 3.3 | |||
| EPRA NAV | ||||||
| Equity | 11,752 | 9,081 | 11,463 | |||
| Deferred tax liability | 2,442 | 2,231 | 2,362 | |||
| Derivatives | 1,090 | 1,179 | 1,144 | |||
| 15,284 | 12,491 | 14,969 | ||||
| Number of shares, thousand | 76,857 | 76,857 | 76,857 | |||
| EPRA NAV per share, SEK | 198.86 | 162.52 | 194.76 |
Some of the financial metrics that Wihlborgs presents in the interim report are not defined in accordance with IFRS. Wihlborgs is of the opinion that these metrics provide valuable complementary information to investors and the company's management, since they enable evaluation of the company's performance. As all companies do not apply the same approach to calculating these financial metrics, they are not always comparable to metrics used by other companies.
Accordingly, these metrics should not be viewed as replacements for metrics defined under IFRS. On the next page, definitions of metrics are presented that, with a few exceptions, are not defined in accordance with IFRS.
The key ratios are based on the statements of income, financial position, changes in equity and cash flow. Some of the historic data is compiled from the historical summary on page 14.
Profit for the period as a percentage of average equity, excluding noncontrolling interests. Average equity refers to the average of the opening and closing values for the respective period. In interim reports, the return is converted to its annualised value without taking account of seasonal variations. The ratio comprises a measure of the profitability in relation to shareholders' equity.
Earnings before interest, value changes in derivatives and taxes (EBIT) as a percentage of average total assets. Average total assets refers to the average of the opening and closing values for the respective period. In interim reports, the return is converted to its annualised value without taking account of seasonal variations. The ratio comprises a measure of the profitability in relation to the total assets employed.
Equity as a percentage of total assets at the end of the period. The ratio provides a measure of the financial strength of the company.
Income from property management, plus interest expense, divided by interest expense. The ratio measures the degree to which earnings can decline without jeopardising interest payments or, alternatively, how much interest expense can increase before income from property management becomes negative.
Borrowings as a percentage of the properties' carrying amounts. The ratio shows the degree of borrowing on the property portfolio.
Interest-bearing liabilities relative to equity. Interest-bearing liabilities correspond to borrowings in the balance sheet. The ratio illustrates the relationship between borrowings and equity and, thereby, the gearing and financial strength.
The operating surplus, excluding payments for early lease termination, shown as a percentage of rental income. In the income statement, the item "other income" is used for payments for early lease termination. The ratio illustrates the proportion of rental income that remains after deducting property management costs.
The operating surplus, excluding payments for early lease termination, shown as a percentage of the properties' average carrying amount. The average carrying amount refers to the average of the opening and closing values for the respective period. In the income statement, the item "other income" is used for payments for early lease termination. In interim reports, the yield is converted to its annualised value without taking account of seasonal variations. The ratio illustrates the yield on the property portfolio without taking account of its financing costs.
Earnings for the period divided by the average number of shares outstanding. Definition according to IFRS.
Earnings per share before tax divided by the average number of shares outstanding.
Income from property management divided by the average number of shares outstanding.
Cash flows from operating activities divided by the average number of shares outstanding.
The relationship between the closing balances for equity and the number of shares at the end of the period.
Calculated as Equity per share I, but not charged with deferred tax. Equity is increased by the addition of the carrying amount for deferred tax liabilities.
Equity per share following the reversal of interest-rate derivatives and deferred tax according to the balance sheet.
Proposed dividend as a percentage of the year-end share price.
Share price performance plus actual dividend relative to the share price at the start of the year.
Market price per share divided by earnings per share. The multiple is converted to its annualised value without taking account of seasonal variations.
Market price per share divided by income from property management, charged with nominal tax at 22 %, per share. The multiple is converted to its annualised value without taking account of seasonal variations.
These key figures are based on the property table on page 10. The table shows the estimated rental value, rental income and property expenses on an annualised basis with an unchanged property portfolio, rental income and lettings portfolio compared with the end of the last quarter.
Rental income plus estimated market-level rents for unlet space.
Operating surplus as a percentage of the carrying amount for the properties at the end of the period.
Rental income on an annualised basis divided by lettable area.
Operating surplus divided by lettable area.
Rental income as a percentage of rental value.
Operating surplus as a percentage of rental income.
*) These key ratios are operational and are not regarded as alternative key ratios according to ESMA´s guidelines.
Wihlborgs Fastigheter AB Box 97, SE-201 20 Malmö Visitors: Dockplatsen 16 Tel: +46 (0)40-690 57 00
Wihlborgs Fastigheter AB Terminalgatan 1 SE-252 78Helsingborg Tel: +46 (0)42-490 46 00
Wihlborgs Fastigheter AB Ideon Science Park Scheelevägen 17 SE-223 70 Lund Tel: +46 (0)46-590 62 00
Wihlborgs A/S Hørkær 26. 1.sal DK-2730 Herlev. Danmark Tel: +45 396 161 57
www.wihlborgs.se [email protected] Registered office: Malmö Corporate registration no.: 556367-0230
With the commitment of our employees and the quality of our properties, we will create conditions for strong growth for business in the Öresund region.
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