Interim Report January March 2003

Transcription

1 Interim Report January March 2003

2 Interim Report January March 2003 The profit after financial items increased to SEK 192 million (141) EPS after tax increased to SEK 2.21 (1.60) Wihlborgs owns 7,186,500 B shares in Drott AB (publ), equivalent to 8% of the capital and 7.6% of the votes Repurchase of 302,900 own shares during the period. Total holding of 720,400 shares, equivalent to 1.2% of the capital and votes Results The profit after financial items increased to SEK 192 million (141) 1). EPS after tax 2) rose to SEK 2.21 (1.60). Rental income totalled SEK 515 million (590). The operating surplus before depreciation totalled SEK 307 million (351). The operating profit increased to SEK 375 million (336), including SEK 122 million (45) in profits from the sale of properties. The financial net totalled SEK -183 million (-195), including interest grants totalling SEK 1 million (1). Operations Wihlborgs is one of Sweden s larger property companies. The operations are concentrated on the growth regions of Stockholm and Öresund. The property holdings comprises commercial premises and residential accommodation with an annual rental value of SEK 2.2 billion, a total leasable floor area of 2 million sq.m. and a book value of SEK 19.7 billion. The market and property holdings 62 per cent, 36 per cent and 2 per cent of the total property holding s rental value 3) are to be found in the Stockholm, Öresund and Other regions, respectively. 63 per cent, 21 per cent, 15 per cent and 1 per cent of the property holding s rental value comprises Offices/Shops, Industrial/Hotel premises, Residential premises and Other, respectively. At the period end, the economic letting level for the Group s property holding was 93 per cent. During the equivalent period last year the figure was 94 per cent. Broken down by Wihlborgs market areas, the letting levels in the Stockholm and Öresund regions are 94 per cent (95) and 92 per cent (93), respectively. The rental market for commercial premises The weakened state of the market is in the Stockholm region primarily noticeable in that it takes longer to con- 1) The comparative figures for Profit & Loss Account items refer to values for the period from January to March 2002, whilst those for Balance Sheet items refer to values as of 31 December ) For definitions, please see page 5. 3) Refers to rental values on a full year basis, which are defined as rent payable as per 31 March 2003 on a full year basis plus estimated market rental on a full year basis for vacant floor area. Rental value by geographical region Book value by geographic region Stockholm 62% Öresund 36% Other 2% Stockholm 64% Öresund 34% Other 2% Rental value by property category Book value by property category Offices/retail 63% Industrial/warehouse/hotels 21% Residential 15% Other 1% Office/retail 65% Industrial/warehouse 16% Residential 12% Project/land 6% Hotels 1% 2 INTERIM REPORT JANUARY MARCH 2003

3 RUBRIK clude rental contracts. However, activity on the market is still relatively high, with a good demand for efficient premises in good locations. On several of Wihlborgs submarkets in the Stockholm region, an increased number of enquiries has been noted since the fourth quarter of In the Öresund region the rental market is still stable with a good demand for premises, both in Malmö and Helsingborg. The rental market for accommodation The demand for accommodation is still strong, and Wihlborgs has in principle no vacancies in the Stockholm or Öresund regions. The property market Both Swedish and foreign investors continue to be very interested in property investments. During the first quarter normally the year s weakest quarter for propertyrelated business Wihlborgs sold seven properties for a total of SEK 618 million to private investors in Sweden and Denmark. Investments The investments in existing properties and projects, comprising land, new construction and renovation, totalled SEK 248 million (269). This included SEK 87 million for Ladugårdsgärdet (the OM building), SEK 47 million for Klara Zenit in Stockholm, SEK 26 million for Järla Sjö in Nacka and SEK 39 million for Västra Hamnen in Malmö Duration of leases, commercial premises, % Property sales Seven properties have been sold for the combined sum of SEK 618 million (290), yielding a profit of SEK 122 million (45). (See page 5 for more details.) Financial position Wihlborgs shareholders equity totalled SEK 6,300 million (6,182) as of 31 March. The equity/assets ratio increased to 27.8 per cent (27.3). The result created a liquidity contribution of SEK 157 million (207). Following a decrease in the operating capital of SEK 272million (92), primarily as a result of realisation of claims for completed sales, the ongoing business created a liquidity increase of SEK 429 million (115). The investments, principally through acquisition of shares in Drott AB (publ), exceeded property sales by SEK 512 million (9). Overall, the business created a SEK 83 million (124) decrease in liquidity. The Group s liquid assets, including unutilised current account overdrafts, totalled SEK 830 million (364). The loan volume was SEK 14,634 million (15,457) at the period end, with an average interest rate of 5.67 per cent (5.61). The total loan volume includes individual loans for ongoing projects totalling SEK 1,198 million. The average fixed interest term for the loans, including the effects of derivative instruments utilised, was 21 months (20 months) on 31 March. Of total loans with short interest - SEK 7,684 million - SEK 3,290 million have been extended with the aid of interest swaps of one to seven years. SEK 400 million are covered by interest rate caps at 4 per cent. The loans that are subject to interest recalculation in 2003 have an average fixed interest term of 99 days. The average capitalbinding period was 6.2 years (3.5). Repurchase of own shares During the period, 302,900 shares were repurchased at an average price of SEK 70 per share. The total holding as of 5 May 2003 is 720,400 shares, equivalent to 1.2 per cent of the number of outstanding shares. At the general meeting of shareholders on 2 April 2003 the board received a new mandate to repurchase and transfer own shares < 2007 The average contractual period for commercial premises, weighted in accordance with the rental value, is 38 months. The total contractual value is SEK 1.6 billion. Acquisition of shares in Drott AB (publ) On 6 February 2003 Wihlborgs announced that the company had acquired B shares in Drott AB (publ). As of 5 May 2003 Wihlborgs holding is 7,186,500 B shares, equivalent to 8 per cent of the capital and 7.6 per cent of the INTERIM REPORT JANUARY MARCH

4 INTERIM REPORT JANUARY MARCH 2003 votes in Drott. The big discount to net asset value in Drott means Wihlborgs has acquired part of a high-quality property stock at a great discount. Wihlborgs assesses that there are great possibilities for an increased pace of change and value-creating development within Drott. The objective is to own 10 per cent of Drott, which in future, as a result of new rules as from 1 July 2003, will amongst other things mean a tax-free dividend. Staff At the end of the period the total number of staff was 151 (160). Accounting principles Wihlborgs accounting principles are the same as last year s. The company follows the recommendations of the Swedish Financial Accounting Standards Council and statements made by its emergency group. Events after the period end Wihlborgs' annual general meeting on 2 April 2003 At Wihlborgs Fastigheter AB's annual general meeting on 2 April 2003 the board's proposal of a dividend of SEK 4.50 per share was ratified. The meeting also ratified the proposal of distributing shares in Klövern AB, whereby six Wihlborgs shares give entitlement to one B-share in Klövern AB. The meeting resolved to re-elect the board members Göte Dahlin, Kerstin Fredriksson, Sven-Åke Johansson, Erik Paulsson, Mats Qviberg and Maths O. Sundqvist. Stefan Dahlbo, deputy CEO of Investment AB Öresund, was elected as new member of the board. The meeting furthermore resolved that the fee paid to the board will be SEK 850,000. The general meeting resolved to authorise the board, at the latest up until the next annual general meeting, to acquire and transfer Wihlborgs own shares. Acquisitions may take place of not more than the number of shares, which at any time are equivalent to 10 percent of all the company's issued shares. The meeting resolved to re-elect the Nomination Committee members Mats Qviberg and Sten Kottmeier. Björn Lind, SEB Fonder, was elected as new member of the Nomination Committee. At the subsequent statutory board meeting Mats Qviberg was re-elected as the board's chairman and Sven-Åke Johansson as the deputy chairman. Financial report dates 2003 Interim report January-June 7 August 2003 Interim report January-September 30 October 2003 This Interim Report has not been subject to review by the company s Auditors. Malmö, 5 May 2003 Wihlborgs Fastigheter AB (publ.) Erik Paulsson President Largest shareholders in Wihlborgs Fastigheter AB at Number of Proportion of capital shares and votes, % Investment AB Öresund 7,751, Erik Paulsson 3,082, AMF Pension 2,770, HQ Fonder 2,544, Sten K Johnson 2,091, Robur Fonder 1,954, Skandia 1,707, SEB Fonder 1,594, Andra AP-fonden 1,167, Maths O Sundqvist 1,150, Foreign shareholders 10,358, Other 26,253, Total 62,423, The Group s loan structure as of 31 March 2003 Average SEKm interest, % Share, % , , , , , , > Current account Total 14, As of 31 March the number of shareholders was 26,666, an increase of 504 since the last quarter. 4 INTERIM REPORT JANUARY MARCH 2003

5 Rubrik The property holding as of 31 March 2003 Book Rental Econ. Rental Operating No. value, value, letting level income, surplus, Region 1) Properties Area sq. m. SEKm 2) SEKm 3) per cent SEKm 4) SEKm 4) Stockholm 218 1,062,930 12,661 1, Öresund ,582 6, Total 437 1,998,512 19,282 2, ) Wihlborgs owns 8 properties with a total rental value of SEK 46 million outside the main regions Stockholm and Öresund. These properties are not included in the table. 2) Book value includes undeveloped land and project properties with a value of SEK 1,021 million. 3) Rental value is defined as rental income as of 31 March 2003, plus estimated market rent for unoccupied floor area on a full year basis. 4) Rental income, operating surplus and interest grants refer to the period from 1 January 2003 to 31 March 2003 for Wihlborgs property holding as of 31 March Project portfolio as of 31 March 2003 Property Property Munici- Estmated Lettable Degree Book value Added Total Estimated name type pality occupation space of renta , investment, investment, annual rent, sq.m. bility, % SEKm 4) SEKm SEKm SEKm Järla Sjö 1) Office Nacka , The OM building 2) Office Stockholm Q , The Telia building Office Malmö Q , Other projects and land 3) Total 62, , ) Turbinhallen and Gjuteriet are in the process of production. Ättiksfabriken has not been started. 2) The acquisition of the property Ladugårdsgärdet 1:48 for SEK 236 million is not included. 3) In Hammarby Sjöstad, Wihlborgs owns office and industrial properties. The area is under development, and planning is in progress. 4) The project portfolio amounts to a total of SEK 1,021 million. List of property sales January-March 2003 Property sales Q1 Property Region Municipality Area,Sq.m. Category Östbanegade Öresund Köpenhamn 28,954 Office Bybjergvej 5 Öresund Helsingör 7,672 Ind/wareh Bybjergvej 13 Öresund Helsingör 1,256 Ind/wareh Maribo 1 Öresund Malmö 4,038 Residential Malmen 13 Öresund Malmö 4,781 Residential Eskilstorp 14:105 Öresund Vellinge 1,363 Ind/wareh Arlöv 19:142 Öresund Burlöv - Land Total property sales January-March ,064 Definitions Calculation of key ratios per share Key ratios based on the average number of shares, shareholders equity and capital employed have been calculated on the basis of the weighted average. The dilution effect of subscription warrants issued has been taken into account for key ratios per share. Capital employed Balance sheet total less non-interest bearing liabilities and allocations. Return on capital employed Profit before tax plus interest expenses in relation to average capital employed. Return on shareholders' equity Profit in relation to average shareholders' equity. Interest coverage ratio Income after net financial items plus financial expenses, in relation to financial expenses. Equity/assets ratio Shareholders equity including minority holdings in relation to the balance sheet total. Profit per share Profit for the period in relation to average number of shares. Cash flow per share Profit before tax plus depreciation and writing down less tax paid in relation to average number of shares. Reported shareholders' equity per share Shareholders' equity and minority holdings in accordance with the balance sheet in relation to the number of shares at the end of the period. INTERIM REPORT JANUARY MARCH

6 INTERIM REPORT JANUARY MARCH 2003 Consolidated Profit and Loss Accounts Jan-March Jan-March Jan-Dec 12-month SEKm rolling Rental income ,282 2,207 Property costs Operating surplus ,412 1,368 Depreciation Gross profit ,228 1,190 Central administration Profit on sale of properties Operating profit ,785 1,824 Interest income Interest grants Interest expenses Profit after financial items ,010 1,061 Paid tax Deferred tax Profit after taxes ,015 Minority holdings Net profit ,009 Profit per share prior to dilution, SEK Profit per share following dilution, SEK Number of shares at end of period prior to dilution, millions Number of shares at end of period following dilution, millions Average number of shares prior to dilution, millions Average number of shares following dilution, millions Consolidated key ratios 31 March March Dec 2002 Return on capital employed, % Return on shareholders equity, % Interest coverage ratio, times Equity/assets ratio, % Income per share, SEK Cash flow per share, SEK Reported shareholders equity per share, SEK INTERIM REPORT JANUARY MARCH 2003

7 Rubrik Consolidated Balance Sheets SEKm 31 March March Dec 2002 Assets Properties 19,652 21,829 19,940 Other tangible fixed assets Financial fixed assets 1, Current assets Liquid assets Total assets 22,648 23,111 22,657 Shareholders equity and liabilities Shareholders equities 6,300 5,563 6,182 Minority holdings Allocations 830 1, Interest bearing liabilities 14,634 15,457 14,738 Non-interest bearing liabilities 884 1, Total shareholders equity and liabilities 22,648 23,111 22,657 Statement of change in equity SEKm 31 March March Dec 2002 Initial balance for period of report 6,182 5,478 5,478 Dividend to shareholders Buy back of own shares Translation gains/losses Net profit/loss Closing balance for period of report 6,300 5,563 6,182 Consolidated Cashflow Analyses SEKm Jan-March 2003 Jan-March 2002 Jan-Dec2002 Operating profit/loss ex. depreciation and profits on the sale of properties ,974 Net financial items paid Taxes paid Change in other operating capital Cashflow from the ongoing operations Investments and property acquisitions ,317 Book value properties sold ,059 Other investments (net) Cashflow from investment activities ,417 Dividends Buy back of own shares Change in interest-bearing liabilities ,003 Allocations, minority holdings etc, acquired Cashflow from financing activities ,410 Change in liquid assets Liquid assets at the beginning of the period Liquid assets at the period end INTERIM REPORT JANUARY MARCH

8 This is Wihlborgs Wihlborgs Fastigheter AB (publ) is one of Sweden s largest listed property companies, with real estate to a book value of SEK 19.7 billion. The real estate, which is concentrated on the Stockholm and Öresund regions, has a rental value on a twelvemonth basis totalling SEK 2.2 billion, and a rentable area of 2 million square metres. The company has offices in Stockholm, Malmö, Copenhagen and Helsingborg. Wihlborgs shares are listed on Attract 40 on the Stockholm Stock Exchange s O-list. Facts Wihlborgs as of 31 March 2003 Total leaseable area 2 million sq.m. Book value SEK 19.7 billion Rental value on a full year basis SEK 2.2 billion No. shareholders approx 26,666 Book value by geographic region Stockholm 62% Öresund 43% Other 2% Rental value by real estate category Office/Retail 53% Industrial/warehouse/hotel 21% Residential 15% Other 1% Wihlborgs Fastigheter AB Box Nacka Visiting address: Gustaf de Lavals Torg Nacka Phone: Fax: Wihlborgs Fastigheter AB Box Malmö Visiting address: S:t Johannesgatan 2 Phone: Fax: Wihlborgs Fastigheter AB Garnisonsgatan 25 A Helsingborg Phone: Fax: info@wihlborgs.se, Corporate identity no.: , Board registered office: Malmö Wihlborgs A/S Hellerupvej 8, 2 tr DK-2900 Hellerup, Danmark Phone: Fax: Graphic Design/Production: Malmer & Partners, Gbg, Sweden 2003.