Interim Report. January - September

Transcription

1 Interim Report January - September 2018

2 JM Group 1) Revenue: SEK 16.6 billion 2) Total assets: SEK 16.1 billion No. of building rights: 36,700 No. of employees: 2,610 Market Cap: SEK 11.2 billion 3) 21 % 76 % 3% Norway Sweden Finland 1) According to segment reporting 2) 12-month period 3) SEK 161 per share, October 25,

3 Group Summary 1) January September 2018 Revenue decreased to SEK 12,011m (12,457) Operating profit decreased to SEK 1,443m 2) (1,731) SEK m % Operating margin decreased to 12.0 percent (13.9) Gains from property sales SEK 10m (14) ) According to segment reporting 2) Of which SEK -61m in JM Construction Oct/Sept 2017/2018 2) 12-month period Operating profit Operating margin 1) 0 3

4 Group Summary 1) January September 2018 Profit before tax decreased to SEK 1,387m (1,958) 2) Earnings per share were SEK (22.40) 2) Return on equity was 27.7 percent (39.7) 2) Cash flow from operations was SEK -456m (1,868) 1) According to segment reporting 2) Of which SEK 275m from the sale of participations in Småa AB in 2017 Minna, Helsinki, Finland 51 residential units Solna Trädgårdskvarter, Solna 31 single-family homes 4

5 Group Summary January September 2018 Number of residential units sold 1,712 (2,416) Sales in the third quarter were at the same level as in the second quarter Number of housing starts 2,097 (2,690) Planned housing start of a project in Stockholm was deferred pending municipal development work Residential building rights portfolio 36,700 (34,800) Grefsen Stasjon hus 24, Oslo, Norway 15 residential units Brandstationen 3, Linköping 83 residential units 5

6 Operating profit January September According to segment reporting, SEK m JM Residential Stockholm 757 1,041 JM Residential Sweden JM International JM Property Development 5 24 JM Construction Group-wide expenses Total 1,443 1,731 6

7 Positive development in sales in Stockholm The housing market in Stockholm was cautious, particularly new production, but with continued stabilization in the third quarter. In the rest of Sweden demand was primarily stable In Norway, the level of activity was good and the housing market in Finland was stable In Stockholm customers show strong interest in our projects, but are taking a cautious approach to signing contracts early in the process. However, willingness to sign a contract early in the process increased during recent quarters. Positive development in sales The percentage of sold/reserved residential units in relation to ongoing production 59 % (71) somewhat below normal level A solid financial position gives good acquisition capacity and possibilities to enhance market position 7

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

9 Lower level of residential units sold Number of units ,552 1,318 1, , JM Residential Stockholm JM Residential Sweden JM International Q1 Q4 9

10 Lower level of housing starts Number of units ,745 1, ,336 1, JM Residential Stockholm JM Residential Sweden JM International JM Property Development Q1 Q4 10

11 Råsunda 101 Solna, Stockholm No. of residential units 113 Housing starts Completed in

12 Kvarnparken Uppsala No. of residential units 36 Housing starts Completed in

13 Bergerløkka Asker, Norway No. of residential units 570 Housing starts Completed in

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

15 8,243 1) residential units in current production Percentage sold/reserved implicates normal risk in current production in 2018 Number % % % % % Q4 Q Q Q4 Q Q Q4 Q Q Q4 Q Q Q4 Q Q % JM Residential Stockholm Normal level sold/reserved JM Residential Sweden JM International Percentage of sold/reserved in current production, Group (%) Total 1) Including 681 rental and residential care units within JM Property Development not included in percentage sold/reserved 15

16 Residential units in current production JM Group 30 Sept Sept Dec 2017 Number of residential units 1) 8,243 7,739 8,200 Number of residential units sold 4,063 4,515 4,466 Number of residential units reserved Sold residential units, % Reserved residential units, % Sold/reserved residential units, % Completed production, no. of unsold units 2) Number of unsold units 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 16

17 JM Residential Stockholm January - September Full-year SEK m Revenue 4,434 5,331 7,151 Operating profit 1) 757 1,041 1,438 Operating margin, % Number of available building rights 13,500 13,300 13,400 Number of residential units in current production 3,447 3,837 3,842 1) Of which property sales Cautious market, particularly with regard to new production continued stabilization Bolinder Vy, Järfälla 63 residential units Positive development in sales same level in the second and third quarter Housing starts during the third quarter supported by a normal level of reservations Residential units available for sale have largely occupancy in 2019/2020, the majority in 2020 Planned housing start of a project in Stockholm was deferred pending agreement regarding municipal development work Cash flow in balance taking into consideration the increase in development properties 17

18 JM Residential Sweden January - September Full-year SEK m Revenue 3,254 3,215 4,309 Operating profit 1) Operating margin, % Number of available building rights 10,400 10,100 10,100 Number of residential units in current production 2,471 2,196 2,351 1) Of which property sales Stable demand Sales in the third quarter increased slightly compared to the second quarter Stronger profit and margin Cash flow is burdened by a temporary increase in working capital Tornträdgården 2, Uppsala 51 residential units 18

19 JM International January - September Full-year SEK m Revenue 2,486 2,336 3,262 of which JM Norway 2,088 1,961 2,777 Operating profit 1) of which JM Norway Operating margin, % of which JM Norway Number of available building rights 12,100 10,500 10,500 Number of residential units in current production 1,644 1,290 1,454 1) Of which property sales 10-0 Good level of activity in Norway with stable prices and stable housing market in Finland Höyhensaari, Helsinki, Finland 70 residential units The geographic scope is gradually expanding The lower level of housing starts in Norway during the nine month period is in line with the annual plan proportionally more starts during fourth quarter Somewhat improved profit and margin Cash flow burdened by investments in development properties 19

20 JM Property Development January - September Full-year SEK m Revenue Operating profit 1) Number of available building rights 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 five rental projects in JM s balance sheet: Tjärtunnan, Stureby, 187 apartments Alphyddan, Nacka, 93 student apartments Spaken, Hägernäs, Täby, 136 apartments Alba Lilium, Bredäng, 137 apartments Manegen, Täby Park, Täby, 128 apartments 681 rental units and residential care units in current production Rental unit project Manegen, Täby 20

21 JM Construction January - September Full-year SEK m Revenue 1) 2,130 1,918 2,751 Operating profit/loss Operating margin, % ) Of which internal Good demand but tough competition Unchanged revenue level Negative profit and margin negative revaluations in the Swedish operations Cash flow is burdened by increase in working capital The operations will be assessed during the fourth quarter 2018 with regard to future focus and scope 21

22 Available building rights portfolio No. of building rights 1) Region 09/30/ /30/2017 Stockholm 14,200 2) 14,200 2) Malmö/Lund 3,100 3,300 Gothenburg 3) 3,700 3,300 Uppsala 4) 3,600 3,500 Norway 8,700 7,700 Helsinki 3,200 2,600 Belgium Total 36,700 34,800 1) Rounded to the nearest hundred 2) Of which 700 and 900 building rights for rental units and residential care units 3) West region 4) East region 22

23 Increased level of development properties Building rights in Balance Sheet Jan - Sept SEK m Opening balance 6,802 7,067 7,121 7,543 Plus 2,695 1,903 2,017 2,248 Minus -2,430-1,849-1,595-1,282 Closing balance 7,067 7,121 7,543 8,509 23

24 Project properties SEK m 09/30/ /30/ /31/2017 Properties under development 1, Fully developed rental unit properties 1) Fully developed commercial properties Total 1, ,074 1) Dalénum, Lidingö, 97 apartments 24

25 Approx. 6 years production in Balance Sheet No. of building rights 1) 09/30/2018 In Balance Sheet Housing starts 2) Average period, years 3) JM Residential Stockholm 8, JM Residential Sweden 6,400 1, JM International 5, JM Property Development Group 20,300 3, ) Residential building rights 2) 12-month period 3) Guideline value 5 years 25

26 56 unsold residential units in Balance Sheet, SEK 224m SEK m Q Q Q

27 Cash flow Cash flow statement, SEK m 2017 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 2,557 2,572 2,564 2,078 1,854 1) Of which net investment project properties ) Of which net investment development properties ) Of which paid tax According to segment reporting 27

28 Strong financial position and liquidity SEK m Net interest-bearing liability(+)/receivable(-) 1) times 1,5 1 Equity/Assets ratio 1) 40 percent (39) Available liquidity was SEK 4,654m (5,357) of which cash and cash equivalents SEK 1,854m (2,557) ,5 Unutilized overdraft facilities and credit lines SEK 2,800m (2,800) 0 0 Credit lines of SEK 2,400m have an average maturity of 3.3 years (1.7) ,5 1) According to segment reporting 2) Non interest-bearing deferred payments for property acquisitions amounted to SEK 1,023m (543) Sept 2) 2018 Net interest-bearing liability(+)/receivable(-) Debt/equity ratio 28

29 Net financial items January September SEK m Financial income 4 1 Sale of participations in Småa AB Financial income Interest expenses Interest expense pensions Financial expenses Net financial items

30 Components of profit/loss housing business Percentage of completion method (gross) 2018 (Q2 2018) Cost-based effect SEK 389m (420) Revaluation effect SEK 263m (470) + + Sales effect SEK -7m (-136) 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. Change in the relationship between stage of completion and sales rate in a period (incoming outgoing) (Adjustment of accumulated profit for unsold homes). = Profit/loss for the period SEK 645m (754) 30

31 Revaluation effects housing business SEKm 2017 Q Q Q Group Business segment Stockholm Sweden International Total Q The net of positive and negative revaluation effects in residential projects during 2018 totaled SEK 263m, with current assessment of market conditions for the actual forecast period. 31

32 JM today Customer focused strong brand 36,700 building rights in attractive locations Fundamentally favorable prospects Cautious market in Stockholm Sustainable urban planning Efficient management system Investments in digital support Strong balance sheet offers freedom of action Well balanced risk profile Bergerløkka, Asker, Norway 32