Welcome to Kungsleden

Transcription

1 Welcome to Kungsleden

2 Chief Executive Thomas Erséus Deputy Chief Executive Johan Risberg 17 February 2011

3 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 risk levels 592 properties, of which 297 are part-owned via Hemsö, reported at SEK 21.5 (21.9) bn as of 31 December 2010 Commercial properties 45% (46) Public properties 48% (47) Modular buildings 7% (7) 23,300 shareholders. 37% of shares held by private individuals and approximately a quarter by foreign shareholders. Ten largest shareholders control 20.4% of capital and votes

4 Profit for calculating dividends SEK m Gross profit 1,545 1,817 Sales and administration costs Net financial position Sub-total Realised items Trading net at divestment Realised value changes, properties 21 1,189 Realised value changes, financial instruments Sub-total Taxes payable Profit for calculating dividends 530 1,022

5 Fourth quarter in brief Increased net sales and strong profits. Pronounced upturn in transaction volume. Kungsleden completed some SEK 7 billion of transactions including Nordic & Russia Properties. Acquisition of 52 properties for a value of SEK 1,517 m and a property yield of 7,6%. This included six retail properties for SEK 520 m and six properties in Malmö for SEK 435 m. The transaction with NRP, of SEK 3.6 billion, was completed in February Divestment of 22 properties for SEK 1,901 m at a property yield of 9,0%. Includes six properties in Ludvika for SEK 809 m. Divestment of 17 properties in Germany for SEK 1.3 billion. Approved by Swedbank Robur s sustainability funds.

6 Customers and lettings New tenants include Isringhausen, Fraktkompaniet i Mölndal and Mechanum. New lettings in 2010 with annual rental value of SEK 84 m. Vacancies mainly concentrated on six commercial premises in Burlöv, Kungsbacka, Botkyrka, Härnösand, Gävle and Umeå. Average vacancy of 8,8% - 6,8% excluding the above properties. Remaining contract terms averaging 5,7 years for commercial properties and 8,2 years for public properties.

7 Current market conditions Kungsleden s lettings market Slightly increasing new lettings Vacancy levels stabilising Slightly increasing rent levels Financial market Continued strong capital flows to the property sector New foreign mutual funds investing in properties Bank deal appetites increasing Transaction market Extremely strong fourth quarter High competition over properties

8 Property portfolio

9 Our properties by type

10 Kungsleden 2010 in figures

11 Income Statement SEK m Rental revenues 2,120 2,394 Sales revenues, modular buildings Net sales 2,304 2,602 Gross profit 1,545 1,817 Trading net Sales and administration costs Net financial position Unrealised value changes Profit before tax 1, Tax Profit after tax for the period

12 Income Statement SEK m Rental revenues 2,120 2,394 Sales revenues, modular buildings Net sales 2,304 2,602 Gross profit 1,545 1,817 Trading net Sales and administration costs Decrease due to partsale of public properties and negative rent indexation for Rental revenues reduced by 2% in like-for-like terms. Net financial position Unrealised value changes Profit before tax 1, Tax Profit after tax for the period

13 Income Statement SEK m Rental revenues 2,120 2,394 Sales revenues, modular buildings Reduced demand due to recession Net sales 2,304 2,602 Gross profit 1,545 1,817 Trading net Sales and administration costs Net financial position Unrealised value changes Profit before tax 1, Tax Profit after tax for the period

14 Income Statement SEK m Rental revenues 2,120 2,394 Sales revenues, modular buildings Net sales 2,304 2,602 Gross profit 1,545 1,817 Trading net Sales and administration costs Down 15%, or 7% excluding Hemsö transaction. Indexation and higher costs for snow clearance and heating the prime reason Net financial position Unrealised value changes Profit before tax 1, Tax Profit after tax for the period

15 Income Statement SEK m Rental revenues 2,120 2,394 Sales revenues, modular buildings Sales price exceeds book value. Net sales 2,304 2,602 Gross profit 1,545 1,817 Trading net Sales and administration costs Net financial position Unrealised value changes Profit before tax 1, Tax Profit after tax for the period

16 Income Statement SEK m Rental revenues 2,120 2,394 Sales revenues, modular buildings Lower administration costs mainly because of part-sale to AP3 Net sales 2,304 2,602 Gross profit 1,545 1,817 Trading net Sales and administration costs Net financial position Unrealised value changes Profit before tax 1, Tax Profit after tax for the period

17 Income Statement SEK m Rental revenues 2,120 2,394 Sales revenues, modular buildings Includes a positive effect of property divestment Net sales 2,304 2,602 Gross profit 1,545 1,817 Trading net Sales and administration costs Net financial position Unrealised value changes Profit before tax 1, Tax Profit after tax for the period

18 Income Statement SEK m Rental revenues 2,120 2,394 Sales revenues, modular buildings Net sales 2,304 2,602 Gross profit 1,545 1,817 Trading net Sales and administration costs Net financial position Positive change on properties corresponding to 1% of book value. Positive value change on financial instruments resulting from rising long yields. Unrealised value changes Profit before tax 1, Tax Profit after tax for the period

19 Income Statement SEK m Rental revenues 2,120 2,394 Sales revenues, modular buildings Slightly more tax than 26,3% of profit before tax Net sales 2,304 2,602 Gross profit 1,545 1,817 Trading net Sales and administration costs Net financial position Unrealised value changes Profit before tax 1, Tax Profit after tax for the period

20 Income Statement SEK m Rental revenues 2,120 2,394 Sales revenues, modular buildings Net sales 2,304 2,602 Gross profit 1,545 1,817 The higher figure is mainly because of unrealised value changes on properties and financial instruments Trading net Sales and administration costs Net financial position Unrealised value changes Profit before tax 1, Tax Profit after tax for the period

21 Balance Sheet SEK m Assets 31 Dec 31 Dec Goodwill Properties 21,501 21,861 Receivables, etc. 2,045 1,466 Cash and cash equivalents Total assets 24,494 24,208 Equity and liabilities Equity 7,357 7,079 Interest-bearing liabilities 13,949 14,437 Non-interest-bearing liabilities 3,188 2,692 Total equity and liabilities 24,494 24,208

22 Maturity structure, interest fixings As of 31 December 2010 Loan, SEK m ,990 Interest derivatives, SEK m Ave. interest, % , , , , , Average fixed interest term, years Total derivatives 14, Total loans 13, Market value of loans and derivatives 716 Total 14,706

23 Maturity structure, credits (including un-utilised credit facilities) As of 31 December 2010 Utilised credits, SEK m Un-utilised credits, SEK m Total credits, SEK m , , ,637 3,600 11, , , Summa 13,990 4,252 18,244 Average conversion term, years Equity ratio 31 Dec 10 30% 30 jun 10 27% 31 Dec 09 29% Mortgage ratio

24 Underlying profits,

25 Ten largest shareholders (% of votes & capital) Länsförsäkringar fonder 4.7 Nordea fonder 3.1 Olle Florén and companies 2.3 SHB fonder 2.0 AP4 1.6 Norwegian Government 1.5 AP2 1.4 SEB Fonder 1.4 Swedbank Robur Fonder 1.3 Black Rock fonder (USA) Source: SIS Ägarservice

26 Outlook for 2011 A strong Swedish economy paves the way for favourable years for property Focus on customer care, cash flow and enhancing the portfolio Broadening the base of alternative funding sources Kungsleden active on the transaction market and increased property portfolio Implement continued measures to reduce vacancy levels in a cluster of large properties Increasing rent levels High employee commitment creates good prospects Kungsleden s head office at a new address

27 The share to the end of December

28 Total yield to the end of December 2010

29 Any questions?