Interim report Q3 2017

Transcription

1 Interim report Q3 2017

2 JM Group Revenue: SEK 16.8 billion 1) Total assets: SEK 14.4 billion 2) No. of building rights: 34,800 No. of employees: 2,540 Market Cap: SEK 14.5 billion 3) 18 % Norway 79 % Sweden 3 % Finland 0 % 1) 12-month period 2) According to segment reporting 3) SEK 208 per share Belgium ytf

3 Group Summary 1) January September 2017 Revenue increased to SEK 12,457m (11,456) Operating profit increased to SEK 1,731m (1,414) SEK m % Operating margin increased to 13.9 percent (12.3) Gains of property sales SEK 14m (15) 1) According to segment reporting Okt/Sept 2016/2017 Operating profit Operating margin 2) 12-month period 2) 1) ytf

4 Group Summary 1) January September 2017 Profit before tax increased to SEK 1,958m 2) (1,379) Earnings per share increased to SEK (14.50) Return on equity increased to 39.7 percent (30.7) Cash flow from operations was SEK 1,868m (1,589) 1) According to segment reporting 2) Of which SEK 275m from the sale of participations in Småa AB Solstrålen, Stockholm 138 residential units Friisgatan, Malmö 90 residential units ytf

5 Group Summary January September 2017 Number of residential units sold 2,416 (2,918) Lower level residential units sold cautious market in Stockholm Number of housing starts 2,690 (2,830) Lower level of housing starts in Norway during the nine-month period in line with plan - proportionately more starts during the fourth quarter Good level of housing starts in Stockholm to normal level of reservations stable profitability Residential building rights portfolio 34,800 (30,900) Kajplats 1, Västerås 82 residential units Entréen hus 1, Oslo, Norway 58 residential units ytf

6 Operating profit January - September According to segment reporting, SEK m JM Residential Stockholm 1, JM Residential Sweden JM International JM Property Development JM Construction Group-wide expenses Total 1,731 1,414 Taituri, Ebo, Finland 39 residential units ytf

7 Cautious market in Stockholm stable market in the rest of Sweden The housing market in Stockholm was cautious during the third quarter. In rest of Sweden demand has been stable During the third quarter, the market in Norway weakened, demand in Finland continued to improve After a cautious period during the third quarter, demand for JM s residential units in Stockholm improved during the end of the quarter. Great interest in the rest of Sweden Housing operations in the rest of Sweden stronger revenue, profit and margin The percentage of sold/reserved residential units in relation to ongoing production 71 % (82) good level ytf

8 SEK/sq.m. Prices on the existing home market Tenant-owned apartment prices in cities, existing home market Q Q Stockholm Inner city Stockholm Nearby suburbs Gothenburg Malmö ytf Source: Mäklarstatistik and WSP

9 Number of units Lower level of residential units sold 1, , , , JM Residential Stockholm JM Residential Sweden JM International JM Property Development Q1 Q ytf

10 Number of units Somewhat lower level of housing starts 1,745 1, ,336 1, JM Residential Stockholm JM Residential Sweden JM International JM Property Development Q1 Q ytf

11 Vattenkvarnen, Söderdalen Järfälla No. of residential units Housing starts Q Completed in ytf 1,

12 Nils Malmö No. of residential units 127 Housing starts Q Completed in ytf

13 Tilly Helsinki, Finland No. of residential units Housing starts Q Completed in ytf

14 Number 140 Average number of housing starts per phase, units in apartment blocks Q Q Q Q Q Q Q Q Q Q Stockholm Sweden International Average value, total ytf

15 7,739 1) residential units in current production Number Q Q2 Q JM Residential Stockholm Normal level sold/reserved Percentage sold/reserved implicates low risk in current production in Q Q Q2 Q Q JM Residential Sweden Q2 Q Q Q2 JM International Q Percentage of sold/reserved in current production, Group (%) 100% 80% 60% 40% 20% 0% Total 1) Including 416 rental and residential care units within JM Property Development not included in percentage sold/reserved ytf

16 Residential units in current production JM Group 30 Sept Sept Dec 2016 Number of residential units 1) 7,739 7,793 7,984 Number of residential units sold 4,515 5,004 4,959 Number of residential units reserved 686 1, Sold residential units, % Reserved residential units, % Sold/reserved residential units, % Completed production, no. of unsold units 2) including in the balance sheet ) Including rental and residential care units within JM Property Development not included in percentage sold/reserved ) After final occupancy according to plan ytf

17 JM Residential Stockholm January - September Full-year SEK m Revenue 5,331 5,144 7,162 Operating profit 1, ,295 Operating margin, % Number of available building rights 13,300 12,400 13,000 Number of residential units in current production 3,837 3,564 3,786 1) Of which property sales Kajplats Kvarnholmen, Stockholm 104 residential units Cautious demand Lower sales during the quarter more normalized at the end of the quarter Stable profitability Cash flow is in balance taking into consideration decrease in development properties ytf

18 JM Residential Sweden January - September Full-year SEK m Revenue 3,215 2,823 3,820 Operating profit 1) Operating margin, % Number of available building rights 10,100 9,400 9,700 Number of residential units in current production 2,196 2,300 2,240 1) Of which property sales Österport, Västerås 70 residential units Stable demand Good sales Stronger revenue, profit and margin Cash flow in balance ytf

19 JM International January - September Full-year SEK m Revenue 2,653 2,541 3,477 of which JM Norway 2,278 2,241 3,056 Operating profit 1) of which JM Norway Operating margin, % of which JM Norway Number of available building rights 10,500 7,900 8,900 Number of residential units in current production 1,290 1,591 1,542 1) Of which property sales Weakening market in Norway during the quarter - demand in Finland continued to improve Low level of housing starts in Norway in line with plan - proportionately more starts during the fourth quarter assuming normal planning processes and demand Cash flow strengthens by temporary decrease in working capital Entréen, Oslo, Norway 58 residential units ytf

20 JM Property Development January - September Full-year SEK m Revenue Operating profit 1) Number of available building rights 900 1, Number of residential units in current production ) Of which property sales The completed Dalénum rental project, Lidingö consisting of 97 apartments is held in JM s balance sheet Ongoing production in three rental projects in JM s balance sheet: Tjärtunnan, Stureby, 187 apartments Spaken, Hägernäs, Täby, 136 apartments Alphyddan, Nacka, 93 student apartments 416 rental units and residential care units in current production Rental unit project Spaken in Hägernäs, Täby ytf

21 JM Construction January - September Full-year SEK m Revenue 1) 1,601 1,211 1,665 Operating profit Operating margin, % ) Of which internal Good demand but tough competition Good orders Increased revenue Lower profit and margin A long-term project is underway to raise profitability Cash flow in balance Lindes Backe, Stockholm ytf

22 Available building rights portfolio No. of building rights 1) Region 09/30/ /30/2016 Stockholm 14,200 2) 13,600 2) Malmö/Lund 3,300 3,500 Gothenburg 3) 3,300 2,700 Uppsala 4) 3,500 3,200 Norway 7,700 5,800 Helsinki 2,600 1,900 Belgium Total 34,800 30,900 1) Rounded to the nearest hundred 2) Of which 900 and 1,200 building rights for rental units and residential care units 3) West region 4) East region ytf

23 Unchanged level of development properties Building rights in Balance Sheet SEK m Jan-sep 2017 Opening balance 5,988 6,802 7,067 7,121 Plus 2,273 2,695 1,903 1,214 Minus -1,459-2,430-1,849-1,351 Closing balance 6,802 7,067 7,121 6, ytf

24 Project properties SEK m 09/30/ /30/ /31/2016 Properties under development Fully developed rental unit properties 1) Fully developed commercial properties Total ) Dalénum, Lidingö, 97 apartments ytf

25 Approx. 4 years production in Balance Sheet No. of building rights 1) 09/30/2017 In Balance Sheet Housing starts 2) Average period, years 3) JM Residential Stockholm 7,700 1, JM Residential Sweden 6,000 1, JM International 4, JM Property Development Group 18,100 4, ) Residential building rights 2) 12-month period 3) Guideline value 5 years ytf

26 67 unsold residential units in Balance Sheet, SEK 267m SEK m Q Q Q Q ytf

27 Cash flow statement, SEK m Cash flow Q Q Q Q From operating activities 1) 2) 3) , From investing activities From financing activities Total cash flow for the quarter , Cash and cash equivalents end of period 1,177 1,520 2,619 2, ) Of which net investment project properties ) Of which net investment development properties ) Of which paid tax According to segment reporting ytf

28 Strong financial position and liquidity Net interest-bearing liability(+)/receivable(-) 1) SEK m Sept 30, 2017 Net interest-bearing liability(+)/receivable(-) 1) times 1,5 1 0,5 0-0,5-1 Debt/equity ratio Equity/Assets ratio 1) 39 percent (38) Available liquidity was SEK 5,357m (3,977) of which cash and cash equivalents SEK 2,557m (1,177) Unutilized overdraft facilities and credit lines SEK 2,800m (2,800) Credit lines of SEK 2,400m have an average maturity of 1.7 years (1.7) Buy-back of own shares for SEK 125m during the third quarter 1) According to segment reporting 2) Non interest-bearing deferred payments for property acquisitions amounted to SEK 543m (513) ytf

29 Net financial items January - September SEK m Financial income 1 15 Sale of participations in Småa AB Financial income Interest expenses Interest expense pensions Financial expenses Net financial items ytf

30 Components of profit/loss housing business Percentage of completion method (gross) Q (Q2 2017) Cost-based effect SEK 372m (391) Revaluation effect SEK 402m (367) + + Sales effect SEK -49m (65) Always positive Usually positive Positive/negative Recognized expenses contribution margin (for the current period). = Changed assessment about forecast total contribution margin and/or total cost of a project that involves revaluation of recognized profit/loss from earlier periods. Profit/loss for the period SEK 725m (823) Change in the relationship between stage of completion and sales rate in a period (incoming outgoing) (Adjustment of accumulated profit for unsold homes) ytf

31 Revaluation effects housing business Mkr Q Q Q Q Group Business segment Stockholm Sweden International Total Q Q The net of positive and negative revaluation effects in residential projects during Q totaled SEK 402m, which indicates a continued stable assessment of market conditions for the actual forecast period ytf

32 JM today Customer focused strong brand 34,800 building rights in attractive locations Fundamentally favorable prospects Sustainable urban planning Efficient management system Investments in digital support Strong balance sheet focus on cash flow Well balanced risk profile Skills development prioritized The project Nils, Malmö ytf