Welcome to Fabege s Interim Presentation for Jan June Christian Hermelin, CEO & President Fabege Åsa Bergström, Vice President & CFO Fabege

Transcription

1 Welcome to Fabege s Interim Presentation for Jan June 2017 Christian Hermelin, CEO & President Fabege Åsa Bergström, Vice President & CFO Fabege

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3 CONDENSED INCOME STATEMENT SEKm Jan-June 2017 Jan-June 2016 Rental income 1,108 1,039 Property expenses Net operating surplus Central administration Net financial items Share in profits of associated companies Profit from property management Realised changes in value, properties Unrealised changes in value, properties 1,989 2,718 Changes in value, derivatives and equities Profit before tax 2,591 3,154 Tax Positive rental growth in identical portfolio: approx. 8% Surplus ratio: 72% (70) Return on projects: 54% Accumulated value growth: 4% Earnings per share: SEK 12:10 (16:51) PROFIT FOR THE PERIOD 2,001 2,730 4

4 KEY FIGURES 30 June June June 2015 Equity, SEKm 24,396 18,630 14,780 Equity per share, SEK EPRA NAV, SEK per share Total return properties, % 5,6 8,7 6,2 Equity ratio, % Loan-to-value ratio, % Interest coverage ratio, multiple 3,0 2,5 2,5 5

5 Capital Market

6 FINANCING 30 JUNE 2017 Activities during the second quarter Issue green MTN SEK 500m Old more expensive swaps have matured Interest fixing SEK 800m Average interest rate down to 2,23 % In July issue SFF SEK 200m Total facilities SEK 26.0 bn Total loans SEK 23.9 bn Of which, bonds SEK 4.5 bn Of which, commercial paper SEK 5.0 bn 24 percent are now green financing Refinancing 2017 SEK 3,7 bn, maturing autumn -17 Unutilized SEK 2.1 bn Capital maturity period: 3.6 years Fixed-rate period: 2.3 years 7

7 PROPOSED CHANGES TO TAX LEGISLATION Referral to the Council on Legislation on changes to corporate taxation Reduced tax rate to 20% Restrictions to deductibility of interest expenses Packaging inquiry Capital gains taxation and stamp duty on all property sales including packaging Stamp duty 2 per cent Temporary limitation on deductibility of loss carryforwards Initial positive effect for Fabege with current low interest expenses Negative effect in event of higher interest rates Increased portion of paid tax as loss carryforwards can only be used in part Positive effect in accounting terms when revaluing deferred tax liability Effect of capital gains taxation depends on future sales Recognised deferred tax liability SEK 4.5bn (31/12/2016) Unrecognised deferred tax liability SEK 1.3bn (31/12/2016) Deferred stamp duty 2 per cent of property value approx. SEK 1bn Referral process will continue until September 7 Fabege will submit a response

8 Rental market

9 POTENTIAL FOR RENT INCREASE CPI adjusted rent SEK/sq.m 6000 Real average rent Stockholm CBD (LS) Vacancies CBD (RS) Vacancy rate % 16, ,0 12,0 10, , ,0 4,0 2, ,0 9 Source: Cushman & Wakefield, Sweden

10 INCREASING RENTAL LEVELS Renegotiation + 27% Net letting SEK 86m growth and relocation to quality favor rental increase in our area 11

11 Transaction market

12 VALUATION Value growth during the period amounted to SEK 1,989m, corresponding to approx. 4 % Average yield requirement 4.45 % (4.53) Value changes during the second quarter resulted mainly from projects and increasing rents and we anticipate continued increasing rents and low yield requirements! 13

13 VALUE INCREASE H1 2017, SEK 1,989 m Q2 2017, SEK1,156m Q1 2017, SEK 833m 16% 27% 27% 40% 57% 33% 13 Project Rent Yield Project Rent Yield

14 Project portfolio

15 VALUE CREATION PROJECTS 221,700 sqm under construction Uarda 6 Pyramiden 4 Trikåfabriken 9 Forecast investments in 2017 at least SEK 2.6bn Occupancy rate 81% Vacancy 900 sqm Fully leased Vacancy 8,300 sqm Pelaren 1 Hörnan 1 Orgeln 7 Signalen 3 15 Vacancy 900 sqm Vacancy 5,000 sqm Vacancy 18,400 sqm Vacancy 6,800 sqm

16 NEW PROJECT Q2 BÅTTUREN 2 5,200 sqm Completed Q2, 2019 Occupancy rate 100 % Goodbye Kansas has signed a contract for 8 years for the for the whole building Environmental certification BREEAM SE: Very Good Fully leased 17

17 NEW PROJECT Q2 LAGERN 2 (PART OF) 5,100 sqm Completed Q3, 2018 Occupancy rate 100 % Solna Stad have signed a contract for 20 years for the for the whole area Environmental certification BREEAM-In Use: Very Good Fully leased 18

18 FRIENDS ARENA New operator New opportunities 19

19 SEKm 650 REVENUE GROWTH Including known lettings and vacancies Excluding rental targets Q Q Q Q Q Q Q Q Q Q Q Q

20 OUR GOOD CONDITIONS Europe s best market Stockholm s best locations Sweden s best project portfolio The world s best organization 21

21 QUESTIONS

22 THANK YOU FOR YOUR ATTENTION

23 OUR DEVELOPMENT RIGHTS JUNE 30, 2017 Commercial development rights 411,600 sqm (172,200 sqm in Arenastaden) Approx. 48 % legally binding Book value: <2,000 SEK/sqm Housing development rights 255,000 sqm Approx. 35 % legally binding Book value: about 7,800 SEK/sqm 23 Kairo 1, Arenastaden