Interim Report January - June 2018

Transcription

1 Interim Report January - June 2018

2 JM Group 1) Revenue: SEK 16.5 billion 2) Total assets: SEK 16.6 billion No. of building rights: 36,000 No. of employees: 2, % 3% Market Cap: SEK 11.9 billion 3) 77 % Norway Sweden Finland 1) According to segment reporting 2) 12-month period 3) SEK 171 per share, July 13,

3 Group Summary 1) January June 2018 Revenue decreased to SEK 8,179m (8,644) Operating profit decreased to SEK 1,032m (1,188) SEK m % Operating margin amounted to 12.6 percent (13.7) Gains from property sales SEK 11m (14) ) According to segment reporting July/June 2017/2018 2) 12-month period Operating profit Operating margin 1) 0 3

4 Group Summary 1) January June 2018 Profit before tax decreased to SEK 997m (1,430) 2) Earnings per share were SEK (16.50) 2) Return on equity was 30.7 percent (41.6) 2) Cash flow from operations was SEK -222m (1,294) 1) According to segment reporting 2) Of which SEK 275m from the sale of participations in Småa AB in 2017 Entréen, Oslo, Norway 75 residential units Humlelunden, Staffanstorp 33 single-family home 4

5 Group Summary January June 2018 Number of residential units sold 1,099 (1,735) Lower level residential units sold cautious market in Stockholm, particularly new production. Some stabilization during the second quarter Number of housing starts 1,417 (1,719) Planning to increase the number of housing starts during the second six months in Stockholm, assuming stabilized housing market and stable planning processes Residential building rights portfolio 36,000 (34,600) Villa Nedergård, Gothenburg 28 residential units Radiotorget, Gothenburg 40 residential units 5

6 Operating profit January June According to segment reporting, SEK m JM Residential Stockholm JM Residential Sweden JM International JM Property Development 1 24 JM Construction 0 19 Group-wide expenses Total

7 Some stabilization of the housing market in Stockholm stable development on other markets The housing market in Stockholm continued to be cautious during the first six months, particularly new production. Some stabilization in the second quarter. In the rest of Sweden demand was primarily stable In Norway, the level of activity was good with a slight increase in prices 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 slightly during the second quarter The percentage of sold/reserved residential units in relation to ongoing production 58 % (75) 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 Number of units Lower level of residential units sold ,552 1,318 1,302 1, JM Residential Stockholm JM Residential Sweden JM International Q1 - Q3 - Q4 9

10 Number of units Lower level of housing starts 1,745 1,443 1,336 1,411 1, JM Residential Stockholm JM Residential Sweden JM International JM Property Development Q1 - Q3 - Q4 10

11 Nor, Täby Park Täby, Stockholm One of JM s first projects certified in accordance with the Nordic Swan Ecolabel, opening the door to green financing. No. of residential units 132 Housing starts Completed in

12 Sorgenfri Malmö No. of residential units 57 Housing starts Completed in

13 Leidarkollen Bergen, Norway No. of residential units 175 Housing starts Completed in

14 Number 140 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 7,814 1) residential units in current production Percentage sold/reserved implicates normal risk in current production in 2018 Number % % % % % Q Q4 Q Q Q4 Q Q Q4 Q Q Q4 Q Q Q4 Q % JM Residential Stockholm Normal level sold/reserved JM Residential Sweden JM International Total Percentage of sold/reserved in current production, Group (%) 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 June June Dec 2017 Number of residential units 1) 7,814 7,641 8,200 Number of residential units sold 3,718 4,720 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 - June Full-year SEK m Revenue 3,005 3,718 7,151 Operating profit 1) ,438 Operating margin, % Number of available building rights 13,600 13,000 13,400 Number of residential units in current production 3,387 3,598 3,842 1) Of which property sales Cautious market, particularly with regard to new production some stabilization Willingness to sign contract early increased slightly in the second quarter Housing starts during the first six months supported by a normal level of reservations Residential units available for sale have largely planned occupancy in 2019 and 2020 Plan for more housing starts during the second six months, assuming stabilized housing market and stable planning processes Condor, Danderyd 108 residential units Good profitability Cash flow in balance taking into consideration the increase in development properties 17

18 JM Residential Sweden January - June Full-year SEK m Revenue 2,334 2,299 4,309 Operating profit 1) Operating margin, % 16,9 14, Number of available building rights 10,300 10,000 10,100 Number of residential units in current production 2, ,351 1) Of which property sales Stable demand Slightly slower sales rate Stronger profit and margin A decrease in working capital had positive impact on cash flow Sjösidan, Lund 92 residential units 18

19 JM International January - June Full-year SEK m Revenue 1,574 1,615 3,262 of which JM Norway 1,344 1,352 2,777 Operating profit 1) of which JM Norway Operating margin, % of which JM Norway Number of available building rights 11,400 10,700 10,500 Number of residential units in current production 1,466 1,348 1,454 1) Of which property sales Good level of activity in Norway with slight increase in prices and stable housing market in Finland The low level of housing starts during the first six months is in line with the annual plan, and will increase during the year Somewhat improved profit and margin Cash flow burdened by investments in development properties Visertäjä, Esbo, Finland 39 residential units 19

20 JM Property Development January - June 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 Housing start, in own balance sheet, during the second quarter of rental project Manegen, Täby Park, Täby with 128 apartments Ongoing production in four rental projects in JM s balance sheet: Tjärtunnan, Stureby, 187 apartments Spaken, Hägernäs, Täby, 136 apartments Alphyddan, Nacka, 93 student apartments Alba Lilium, Bredäng, 137 apartments Rental unit project Manegen, Täby 681 rental units and residential care units in current production 20

21 JM Construction January - June Full-year SEK m Revenue 1) 1,467 1,229 2,751 Operating profit Operating margin, % ) Of which internal Good demand but tough competition Good orders Increased revenue Lower profit and margin negative revaluations in the Swedish operations A long-term project is underway to raise profitability Cash flow is burdened by increase in working capital 21

22 Available building rights portfolio No. of building rights 1) Region 06/30/ /30/2017 Stockholm 14,300 2) 13,900 2) Malmö/Lund 2,900 3,600 Gothenburg 3) 3,700 3,200 Uppsala 4) 3,700 3,200 Norway 7,900 7,800 Helsinki 3,300 2,700 Belgium Total 36,000 34,600 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-Jun SEK m Opening balance 6,802 7,067 7,121 7,543 Plus 2,695 1,903 2,017 2,057 Minus -2,430-1,849-1, Closing balance 7,067 7,121 7,543 8,869 23

24 Project properties SEK m 06/30/ /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) 06/30/2018 In Balance Sheet Housing starts 2) Average period, years 3) JM Residential Stockholm 8,100 1, JM Residential Sweden 6,400 1, JM International 5, JM Property Development Group 20,400 3, ) Residential building rights 2) 12-month period 3) Guideline value 5 years 25

26 79 unsold residential units in Balance Sheet, SEK 322m 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 2,211 2,557 2,572 2,564 2,078 1) Of which net investment project properties ) Of which net investment development properties ) Of which paid tax According to segment reporting

28 Strong financial position and liquidity SEK m Net interest-bearing liability(+)/receivable(-) 1) times 1,5 1 Equity/Assets ratio 1) 38 percent (39) Available liquidity was SEK 4,878m (5,011) of which cash and cash equivalents SEK 2,078m (2,211) ,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 3.5 years (2.0) , June 2) 2018 Net interest-bearing liability(+)/receivable(-) Debt/equity ratio 1) According to segment reporting 2) Non interest-bearing deferred payments for property acquisitions amounted to SEK 1,405m (497) 28

29 Net financial items January June SEK m Financial income 3 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 (Q1 2018) Cost-based effect SEK 420m (440) Revaluation effect SEK 470m (439) + + Sales effect SEK -136m (-129) 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 754m (750) 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 470m, with current assessment of market conditions for the actual forecast period. 31

32 JM today Customer focused strong brand 36,000 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 Nor, Täby Park, Täby 32