Welcome to Kungsleden. 2nd Quarter 2011

Transcription

1 Welcome to Kungsleden 2nd Quarter 2011

2 Kungsleden in brief Owns and manages properties generating high and stable long-term returns Returns more important than property type and location Returns can not be judged without considering the property s risk levels 635 (592) properties, of which 298 part-owned via Hemsö, reported at SEK 26.1 (21.5) bn as of 30 June 2011 Commercial properties 53 per cent (45) Public properties 41 per cent (48) Modular buildings 6 per cent (7) 21,700 shareholders. 40 per cent of shares held by private individuals and approximately one-third by foreign shareholders. Ten largest shareholders control 20.4 per cent of capital and votes

3 Profit for calculating dividends SEK m Gross profit Sales and administration costs Net financial position Sub-total Realised items Trading net on sale Realised value changes, properties 5-13 Realised value changes, financial instruments Sub-total -3-3 Taxes payable Profit for calculating dividends

4 Second quarter in brief Stable quarter with recent acquisition NR Nordic & Russia Properties contributing as planned Net sales increase by 31 per cent to SEK 747 m and gross profit by 22 per cent to SEK 485 m Module sales rise by 65 per cent to SEK 76 m Profit after tax up to SEK 102 (80) m 6 properties purchased for a value of SEK 362 m 1 property sold for a value of SEK 25 m

5 SEK 4.2 bn growth first half year Office and industrial properties 36 properties for SEK 3.6 bn 10 per cent property yield ABB at Västerås occupies 39 per cent of area Office property in Kista SEK 148 m at a property yield of 7.4 per cent Majority let to Office Management on a 10-year lease

6 SEK 4.2 bn growth first half year Warehouse property in Upplands Väsby SEK 97 m at a property yield of 7.4 per cent Jobman Workwear renting the whole property on a five-year lease Industrial property in Motala SEK 52 m at a property yield of 11 per cent Motala Verkstad is tenant on a 17-year lease

7 SEK 4.2 bn growth first half year Offices and housing in Trollhättan SEK 194 m at a property yield of 7.6 per cent Formerly Trollhättan Hospital, current tenants include the City of Trollhättan, Siemens and Kone Elevators Possibility of housing development rights of 10,000 sq.m.

8 Transactions conducted after the first half-year Kungsleden is purchasing a senior high school in Lysekil through Hemsö SEK 180 m at an initial property yield of 6.4 per cent 50 per cent of revenue and costs on Kungsleden Kungsleden is purchasing a senior high school in Norrköping through Hemsö SEK 98 m at a property yield of 7.1 per cent 50 per cent of revenue and costs on Kungsleden Kungsleden is selling two retail properties in Högdalen Municipal Centre and Linköping SEK 65 m at a property yield of 6.5 per cent

9 Current market conditions Kungsleden s lettings market Lettings market remains positive Vacancies confined to few properties Slight increase in rent levels with existing tenants Financial market Increased financial and economic unrest in the surrounding world Swedish government finances remain sound, domestic demand positive Transaction market High supply of properties Transaction sentiment more hesitant as a result of financial unrest in the surrounding world

10 The property portfolio, 2001 Q2-2011

11 Kungsleden s properties by type

12 2nd Quarter 2011 in figures

13 Income Statement SEK m Rental revenues 1,204 1,062 Sales revenues, modular buildings Net sales 1,348 1,142 Gross profit Trading net Sales and administration costs Net financial position Unrealised value changes Profit before tax Tax Profit after tax for the period

14 Income Statement SEK m Rental revenues 1,204 1,062 Sales revenues, modular buildings Net sales 1,348 1,142 Gross profit Trading net Rental revenues increase by 13 per cent. Growth mainly explained by the purchase of NR Nordic & Russia Properties Sales and administration costs Net financial position Unrealised value changes Profit before tax Tax Profit after tax for the period

15 Income Statement SEK m Rental revenues 1,204 1,062 Sales revenues, modular buildings Net sales 1,348 1,142 Sales revenues up by 80 per cent thanks to increased demand for modules Gross profit Trading net Sales and administration costs Net financial position Unrealised value changes Profit before tax Tax Profit after tax for the period

16 Income Statement SEK m Rental revenues 1,204 1,062 Sales revenues, modular buildings Gross profit rises 11 per cent Net sales 1,348 1,142 Gross profit Trading net Sales and administration costs Net financial position Unrealised value changes Profit before tax Tax Profit after tax for the period

17 Income Statement SEK m Rental revenues 1,204 1,062 Sales revenues, modular buildings Net sales 1,348 1,142 Trading net increases to SEK 23 m. Few sales and value changes of SEK 5 m realised through sales Gross profit Trading net Sales and administration costs Net financial position Unrealised value changes Profit before tax Tax Profit after tax for the period

18 Income Statement SEK m Rental revenues 1,204 1,062 Sales revenues, modular buildings Net sales 1,348 1,142 Gross profit Increased admin costs due to Hemsö now independent Larger property portfolio Higher transaction activity Relocation of Kungsleden s and Hemsö s offices Trading net Sales and administration costs Net financial position Unrealised value changes Profit before tax Tax Profit after tax for the period

19 Income Statement SEK m Rental revenues 1,204 1,062 Sales revenues, modular buildings Net sales 1,348 1,142 Gross profit Trading net Sales and administration costs Higher loan volume after the year s acquisitions Recently arranged bond loans have higher interest margin than bank loans Net financial position Unrealised value changes Profit before tax Tax Profit after tax for the period

20 Income Statement SEK m Rental revenues 1,204 1,062 Sales revenues, modular buildings Net sales 1,348 1,142 Gross profit Trading net Sales and administration costs Positive value change corresponding to 1 per cent of book value Positive value change on financial instruments due to higher long yields Net financial position Unrealised value changes Profit before tax Tax Profit after tax for the period

21 Income Statement SEK m Rental revenues 1,204 1,062 Sales revenues, modular buildings Equivalent to 26.3 per cent of profit before tax Net sales 1,348 1,142 Gross profit Trading net Sales and administration costs Net financial position Unrealised value changes Profit before tax Tax Profit after tax for the period

22 Income Statement SEK m Rental revenues Sales revenues, modular buildings Net sales Gross profit Unrealised value changes on properties and financial instruments make a positive contribution Trading net Sales and administration costs Net financial position Unrealised value changes Profit before tax Tax Profit after tax for the period

23 Statement of Financial Position SEK m Assets 30 Jun 31 Dec Goodwill Properties 26,123 21,501 Receivables, etc. 1,435 2,045 Cash and cash equivalents Total assets 28,670 24,494 Equity and liabilities Equity 7,604 7,357 Interest-bearing liabilities 17,644 13,949 Non-interest-bearing liabilities 3,422 3,188 Total equity and liabilities 28,670 24,494

24 Maturity structure, interest fixings As of 30 June 2011 Loan, SEK m Interest derivatives, SEK m Ave. interest, % , , , , , , Average fixed interest term, years Total derivatives 13, Total loans 17, Market value of loans and derivatives 578 Total 18,244

25 Maturity structure, credits (including un-utilised credit facilities) As of 30 June 2011 Utilised credits, SEK m Un-utilised credits, SEK m Total credits, SEK m , , ,420 3,000 11, ,745-2, ,640-1, ,065-2, Total 17,666 3,310 20,976 Average conversion term, years Equity ratio 30 Jun 11 27% 31 Dec 10 30% 30 Jun 10 27% Mortgage ratio 68% 65% 65%

26 Underlying profits, 2001 Q2 2011

27 The share 2010 to mid-august 2011

28 Total yield 2002 to mid-august 2011

29 Ten largest shareholders (percent of votes & capital) Länsförsäkringar fonder 3.1 Nordea fonder 3.0 SHB fonder 2.5 Pensioenfonds PGGM (NL) 2.4 Olle Florén and companies 2.3 Norwegian Government 1.7 AP4 1.6 Black Rock fonder (USA) 1.4 Swedbank Robur Fonder 1.2 SEB Fonder Source: SIS Ägarservice 30 June 2011

30 Outlook for 2011 Focus on customer care, cash flow and enhancing the portfolio Working with a broad base of alternative funding sources Stable government finances but somewhat increased risk of subdued growth High activity level financial unrest creating uncertainty but also opening up attractive transaction opportunities Business Development Manager for commercial properties, Ylva Sarby Westman, will join Kungsleden s group management Limited vacancies and stable underlying cash flows Estimate of profit for calculating dividends of SEK 650 m reiterated

31 Any questions?