Interim report. Akelius Residential. Summary. January to March 2014

Transcription

1 Interim report Akelius Residential January to March 2014 Rental income increased by 5.1 per cent (5,8) for comparable properties Operating surplus increased by 5.1 per cent (6,7) for comparable properties Change in property value SEK 404 million (573), or 0.9 per cent (1.6) Change in value of derivative instruments SEK -281 million (-62) Net profit before tax SEK 255 million (597) Earnings per share before and after dilution, SEK 3.89 (1.20) Investments in property holdings SEK 277 million (269) Purchase of SEK 2,620 million (594) inclusive SEK 2,125 million for properties in England acquired from a sister company Sale of properties for SEK 95 million. The selling prices were 2.9 per cent higher than fair value at the beginning of the year Akelius Fastigheter AB (publ) changed its name to Akelius Residential AB (publ) Summary 2014 Jan-Mar Jan-Mar Jan-Dec Rental income, ,025 Operating surplus, ,579 Operating profit, ,008 Result before tax, ,897 Earnings per share before and after dilution, SEK Potential for new lets, per cent Rent level increase for comparable properties, per cent Real vacancy rate residential, per cent Loan-to-value, total loans, per cent Property fair value, 47,252 36,456 44,091 Number of apartments 42,811 36,216 41,319

2 Akelius Residential Group Operations Akelius Residential s business concept entails the long term ownership, development and management of residential properties able to generate constantly growing cash flow. Low financial risk is achieved through low loan-tovalue ratios, long fixed interest rates and long periods of capital tied up. During the first quarter, the business has continued to focus on raising apartments standards by upgrading to First Class and on increasing property estate holdings through the purchase of real estate in Germany with high upgrade potential. The restructuring program was completed at the end of March 2014 with Akelius Residential AB s purchase of properties in England from a sister company. At the end of the period the Group owned properties in Sweden, Germany, Canada and England with an estimated market value of SEK 47,252 million in comparison with SEK 44,091 million at the end of, of which 57 per cent in Sweden, 34 per cent in Germany, 4 per cent in Canada and 5 per cent in England. Properties are located primarily in attractive, popular locations in growing major cities. 76 per cent of the portfolio is located in greater Stockholm, the Gothenburg region and the Öresund region in Sweden, Berlin, Hamburg, Toronto and London. The remainder of the properties are located in Swedish regional cities such as Halmstad, Umeå and Östersund and in large German cities such as Cologne, Munich and Frankfurt. The proportion of residential properties is high in line with company strategy. At the end of the year the proportion of residential properties amounted to 95 per cent measured by market value. The total rentable area comprised 3,082,000 square metres and the residential holding amounted to 42,811 apartments. Blücherplatz 5, Wiesbaden, Germany, acquired in

3 Property portfolio 31 March 2014 Lettable space, thousand sqm Fair value Residential units Residential Commercial Total SEK/sqm Sweden 23,756 1, ,891 27,065 14,307 Germany 16,463 1, ,055 16,253 15,407 Canada 1, ,825 21,532 England ,109 41,283 Total 42,811 2, ,082 47,252 15,329 England 909 Sweden 23,756 Canada 1,683 Germany 16,463 3

4 Sweden Total property portfolio Residential units 23,756 Fair value, 27,065 - SEK per sqm 14,307 - required yield, per cent 4.84 Vacancy rate, per cent due to upgrades, per cent 76 - real vacancy rate, per cent 0.4 Average rent, SEK/sqm/year Total portfolio 1 April 1,104 Sales -8 Comparable portfolio 1 April 1,096 Increase in comparable portfolio 44 Comparable portfolio 1 April ,140 Purchases -12 Total portfolio 1 April , % Comparable properties, January to March 2014 Average rent new leases, SEK/sqm/year 1,307 Potential new leases, per cent 17 Haparanda 151 units Luleå 114 units Åre 318 units Umeå 689 units Östersund 1,070 units Lysekil 295 units Trollhättan 700 units Gothenburg 1,206 units Enköping 465 units Stockholm 9,015 units Eskilstuna 617 units Skövde 821 units Uddevalla 142 units Borås 1,496 units Halmstad 1,314 units Helsingborg 2,223 units Malmö 2,129 units Trelleborg 689 units 4 Lund 288 units

5 Germany Total property portfolio Residential units 16,463 Fair value, 16,253 - SEK per sqm 15,407 - required yield, per cent 4.65 Vacancy rate, per cent due to upgrades, per cent 43 - real vacancy rate, per cent 2.1 Average rent, EUR/sqm/month Total portfolio 1 April 7.58 Sales - Comparable portfolio 1 April 7.58 Increase in comparable portfolio 0.43 Comparable portfolio 1 April Purchases Total portfolio 1 April % Comparable properties, January to March 2014 Average rent new leases, EUR/sqm/month Potential new leases, per cent 53 The average rent for the total portfolio at 1 April, 2014 also includes four properties bought by Akelius Residential on 1 April The total living space was 14,032 square metres. The advance payment totalling SEK 183 million is reported in the balance sheet as per 31 March 2014 under Current Assets. Kiel 406 units Hamburg 3,848 units Lüneburg 99 units Rostock 278 units Berlin 8,294 units Düsseldorf 571 units Cologne 596 units Frankfurt 484 units Mainz 409 units Stuttgart 105 units Erlangen 286 units Nürnberg 100 units Regensburg 131 units Augsburg 167 units Munich 689 units 5

6 Akelius Residential Canada Total property portfolio Average rent, CAD/sqft/month Residential units 1,683 Fair value, 1,825 - SEK per sqm - required yield, per cent 21, Vacancy rate, per cent due to upgrades, per cent 47 - real vacancy rate, per cent 1.9 Total portfolio 1 April Sales Comparable portfolio 1 April 1.97 Increase in comparable portfolio Comparable portfolio 1 April Purchases Total portfolio 1 April Comparable properties, January to March 2014 Average rent new leases, CAD/sqft/month Potential new leases, per cent The table above shows the development as if Akelius Residential had owned the properties since 1 April. 10 km Akelius Residential properties in Toronto are marked in blue %

7 England Total property portfolio Residential units 909 Fair value, 2,109 - SEK per sqm 41,283 - required yield, per cent 4.43 Vacancy rate, per cent due to upgrades, per cent 59 - real vacancy rate, per cent 3.4 Average rent, GBP/sqft/month Total portfolio 1 April 1.57 Sales - Comparable portfolio 1 April 1.57 Increase in comparable portfolio 0.05 Comparable portfolio 1 April Purchases Total portfolio 1 April % Comparable properties, January to March 2014 Average rent new leases, GBP/sqft/month 2.27 Potential new leases, per cent 47 The property portfolio in England, was bought from a sister company during March The table above shows the development as if Akelius Residential had owned the properties since 1 April. 20 km Akelius Residential properties in London are marked in blue. 7

8 Total property return, Jan-Mar 2014 Growth Jan-Mar, SEK, million per cent Fair value, 1 Jan ,091 - Translation difference Revaluations Investments Purchases 2, Sales Fair value, 31 March , Operating surplus SEK, million Period, per cent Total property return Total property return per cent Jan-Dec Jan-Dec Jan-Dec Jan-Dec Jan-Dec Jan-Mar Income return Value growth Average 8

9 Operating surplus SEK 424 million Consolidated rental income for the year increased by SEK 137 million to SEK 828 million (691). Out of the total increase in revenue, SEK 101 million is attributable to the purchase of new properties and SEK 36 million is due to increased rents on comparable properties. Adjusted for changes in exchange rates, rental income for comparable properties increased by 5.1 per cent compared to the same period in. Average rent for comparable residential properties in Sweden increased by 1.2 per cent during the first quarter. Average rent for new lets during the quarter was SEK 1,307 per square metre and year, which is 17 per cent higher than the average rent at the beginning of the year. At the end of the quarter the average rent was SEK 1,128 per square metre and year. Average rent for comparable residential properties in Germany increased by 1.2 per cent during the first quarter. Average rent for new lets during the quarter was EUR per square metre and month, which is 53 per cent higher than the average rent at the beginning of the year. At the end of the quarter the average rent was EUR 7.76 per square metre and month. Average rent for comparable residential properties in Canada increased by 1.4 per cent during the first quarter. Average rent for new lets during the quarter was CAD 2.63 per square foot and month, which is 35 per cent higher than the average rent at the beginning of the year. At the end of the quarter the average rent was CAD 1.98 per square foot and month. The vacancy rate for residential properties was 2.8 per cent, of which 57 per cent was due to apartment upgrades. The real vacancy rate was therefore 1.2 per cent, which is 0.5 per cent higher compared to the vacancy rate at the end of mainly explained by Germany. Property expenses amounted to SEK 404 million (342), of which SEK 57 million (42) was in respect of maintenance, corresponding to an average annual expense of SEK 75 per square metre (64). The net purchase of properties has increased the operating surplus by SEK 50 million. The operating surplus for comparable properties increased by SEK 17 million or 5.1 per cent. The operating surplus for the period was SEK 424 million (349). For the total portfolio, the operating surplus margin was 51.2 per cent (50.5). Rental income, comparable properties % Q1 Q Real vacancy per cent % Jan Apr 2014 Operating surplus, comparable properties % Q1 Q

10 Increase in value of properties 0.9 per cent The increase in value of the property holding was SEK 404 million (573) for the year, equivalent to 0.9 per cent (1.6). The increase in value is due to increased rental income. Properties were sold during the quarter for a total of SEK 95 million, which is 2.9 per cent above the estimated fair value at the beginning of the period. Net financial items SEK -312 million Income from financial items for the quarter was SEK 2 million (37) and financial expenses were SEK 314 million (279). The Group s interest expenses increased by SEK 36 million compared to the same period last year due to increased borrowings in connection with purchases of properties. The average interest rate on total borrowings decreased by 0.2 percentage points, to 4.58 which affected interest expenses positively. The interest coverage ratio was 1.35 (1.32). Change in fair value of derivatives SEK -281 million Derivative financial instruments during the period declined in value by SEK 281 million (-62), mainly due to the fall in market interest rate. Derivative instruments consist mainly of interest rate swaps. Estimates of the fair value of derivatives is based on Level 2 of the fair value hierarchy. Compared to, no transfers have occurred between the different levels of the hierarchy, and no significant changes have been made regarding the valuation method. Cash flow in the derivative contracts is compared with the cash flow that would have been received if the contracts were concluded at market price on the closing date. The difference in the cash flows is discounted using an interest rate which takes into account the credit risk. The present value obtained is reported in the balance sheet at fair value. Change in fair value is recognized in the income statement without applying hedge accounting. Property purchases SEK 2,620 million During the period properties were purchased for SEK 2,620, of which SEK 2,125 million relates to the purchase of properties in England as part of the Akelius Group restructuring started in. Properties in Germany were bought for SEK 495 million with an average initial yield of 4.3 per cent at the average property price per square metre of SEK 11,100. Purchases 50,000 40,000 30,000 20,000 10,000 Investements Sales Germany SEK/sqm Fair value 2.9% 2.9% England Yield Sales price Q1 Q % 5.00% 4.50% 4.00% 3.50% 3.00% 10

11 Property investments SEK 277 million Investments in properties for the period totalled SEK 277 million (269), equivalent to SEK 91 per square metre. In conjunction with tenants moving out, apartments are upgraded to First Class, which corresponds to the quality of a newly built apartment. Total investment for First Class during the period is SEK 152 million. Other investments of SEK 125 million in improved standards concerned upgrading of residential properties, the conversion of commercial premises and lofts to apartments, densification of existing properties and water and energy saving projects. Market valuation of properties The market value of all properties was assessed by internal valuations by closing day. The valuations are based on a cash flow model for each individual property, with separate assessments of future earning ability and required rates of return. The cash flow model is based on actual income and expenses adjusted for a normalized future cash flow. In order to guarantee valuations, 100 per cent of the properties have been valued externally. Values were verified by Jones Lang LaSalle and CB Richard Ellis. The average required yield for residential properties was 4.74 per cent which is unchanged compared to the beginning of the period. The estimated market value of the Group s property holding at the end of the period was SEK 47,252 million, which is equivalent to an average of SEK 15,329 per square metre as compared to SEK 14,736 at the end of. The higher value per square metre is primarily due to the purchase of properties in England which, on average, were valued at SEK 41,283 per square metre. The market value has increased by SEK 404 million, or 0.9 per cent, as a result of changes in value, and decreased by SEK 45 million, owing to fluctuating exchange rates. The value increase of SEK 404 million is due to increased rental income. Purchases and investments for the quarter amounted to SEK 2,897 million and property sales totalled SEK 95 million. Residential properties constitute 95 per cent of the market value, which is in line with the company strategy of residential properties comprising a minimum of 90 per cent. Loan-to-value 58 per cent The Group s borrowing increased during the year by SEK 2,728 million from SEK 25,521 million at the end of to a total of SEK 28,249 million, primarily due to the net acquisition of properties. The loan-to-value ratio 11 Requiered yield per cent Opening 4.75 Translation difference 0.00 Purchases Sales 0.00 Comparable 0.00 Closing 4.74 Average yield per cent Residential Commercial Sweden Germany Canada England Fair value properties Opening 44,091 Translation difference -45 Revaluations 404 Investments 277 Purchases 2,620 Sales -95 Closing 47,252

12 was 58 per cent. Secured loans increased by SEK 1,654 million from SEK 22,472 million to SEK 24,126 million at the end of the quarter, corresponding to a loan-to-value ratio of 49 per cent. The secured loans was raised from 26 banks in four countries which leads to less dependence on the financial strength of each country and bank. Assets pledged as collateral for mortgages has increased from SEK 25,545 million at the end of to SEK 26,685 million, primarily related to the purchase of properties in England. Unsecured loans, which encompass a listed debenture loan, borrowing from the public and loans from group companies, increased during the period by SEK 1,074 million from SEK 3,049 million at the end of to SEK 4,123 million. The debenture loan, which is listed on Nasdaq OMX Stockholm, had a nominal value of SEK 1,000 million at the end of the period. Equity & Liabilities Loans with security 50% Interest hedge Deferred tax 6% Other liabilities 5% Equity 31% Loans without security 8% Liquidity SEK 1,044 million At the end of the period available funds in the form of cash and secured but unutilized credit facilities totalled SEK 1,044 million, compared to SEK 1,597 million at the end of. Another SEK 78 million of unutilized credit facilities is usable when offering the lenders security. The non-mortgaged share of the properties fair value corresponded to SEK 23,126 million at the end of the period. Equity to assets ratio 31 per cent During the quarter consolidated equity rose by SEK 155 million through the comprehensive income. At the end of the period consolidated equity was SEK 15,324 million, equivalent to an equity to assets ratio of 31 per cent. Interest rate hedge 4.5 years Of the SEK 28,249 million in total interest-bearing debt, SEK 6,122 million had a fixed interest rate term of less than one year and SEK 10,247 million had a fixed interest rate term of more than five years. The loans had an average interest rate of 4.58, which is 0.17 per cent lower than at the beginning of the year. The average interest rate hedge was 4.5 years as compared to 5.0 at the end of. > 5 years 39% < 1 year 21% 1-5 years 40% Capital tied-up 4,5 years Total interest-bearing debt was on average tied up for 4.5 years as compared to 4.6 years at the end of. The loans are raised from 26 banks, 30,000 private investors, the capital market and unsecured loans from companies within the Akelius Apartments. The loans that mature within one year amount to SEK 3,661 million. 12

13 Tax Total tax for the period amounted to SEK 43 million, mainly related to deferred tax from unrealized value increase in the property portfolio. Akelius Residential has no ongoing tax disputes. Cash flow Operating activities generated a cash flow of SEK 105 million (25). The improvement is mainly due to an increased operating surplus. Net cash from financing activities was SEK -2,858 million (-712) mainly related to purchases of properties. Cash flow from acquisitions of properties is secured before signing acquisition agreements. Profitable and non-mandatory upgrades to First Class can, if needed, be stopped within a three-month period. Cash flow from financing activities was SEK 2,743 million (729). Risks and contingencies The operational risks are limited through the property portfolio being concentrated to residential properties in locations with population growth. A strong residential market in Sweden, Germany and Canada reduces the risk for long-term vacancies. In order to further reduce the risk, or variations in the cash flow, interest rates are fixed long-term. Access to capital from a large number of investors, through the capital market and from private individuals provides a low refinancing risk. Overseas investments are currency-hedged so that the Group s equity to assets ratio is not affected by exchange rate fluctuations. Accounting Akelius Residential s interim report has been prepared in accordance with IAS 34, Interim Financial Reporting. The financial statements of the mother company have been prepared in accordance with the Swedish Annual Accounts Act and the accounting standard RFR 2, Accounting for Legal Entities. The Group applies the same accounting principles as in the last annual report, with the exception of IFRS 11 and IFRIC 21 Levies. As from 2014, Akelius Residential applies IFRIC 21 Levies and has reported in the interim report for January-March 2014 the total amount of the annual property tax liability. Additionally, a prepaid expense has been reported and is amortized on a straight-line basis over the financial year. IFRS 11 has not had any material impact on the Group. 13 Estimates and judgments Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The same estimates and judgments are followed in the interim report as in the last annual report. Related party transactions The following related party transactions were carried out during the period. The Group has raised a loan of SEK 1,058 million from the parent company. A portfolio comprising 909 apartments in England was acquired from a sister company. The related party transactions were made on terms equivalent to those that prevail in arm s length transactions. Annual General Meeting 2014 At the Annual General Meeting 14 April 2014, the Board and Managing Director decided to distribute to the shareholder a total amount of 1 billion Swedish kronor. The dividend is equivalent to 2,138 Swedish kronor per share. Significant events after the reporting period The company has paid a dividend of SEK 1,000 million and a new share issue has been registered for about SEK 2,000 million. Akelius Residential plans to issue preferred shares for a minimum of SEK 500 million which will be listed on Nasdaq First North. We expect an increase in equity of at least SEK 1,500 million. The company has implemented a share split entitling the shareholder to receive 4,499 new shares for each share owned. The Group intend to purchase residential property in Paris. At the beginning of May, Akelius Fastigheter AB (publ) changed its name to Akelius Residential AB (publ). Danderyd, 8 May 2014 Akelius Residential AB (publ) Pål Ahlsén Managing director The interim report has been reviewed by the auditors.

14 Report of Review of Interim Financial Information Introduction We have reviewed this report for the period 1 January 2014 to 31 March 2014 for Akelius Residential AB (publ). The board of directors and the CEO are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review. Scope of Review We conducted our review in accordance with the International Standard on Review Engagements ISRE 2410, Review of Interim Report Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing, ISA, and other generally accepted auditing standards in Sweden. The procedures performed in a review do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Conclusion Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act, regarding the Group, and with the Swedish Annual Accounts Act, regarding the Parent Company. Stockholm, 8 may 2014 Öhrlings PricewaterhouseCoopers AB Mats Nilsson Authorised Public Accountant Stina Carlson Authorised Public Accountant 14

15 Consolidated statement of comprehensive income 2014 Jan-Mar Jan-Mar Jan-Dec 3 months 3 months 12 months Rental income ,025 Operating costs ,143 Maintenance Operating surplus ,579 Central administration Other income and expenses Costs - property sales Net gain on revaluation of investment properties ,569 Operating profit ,008 Interest income Interest expenses ,203 Other financial income and expenses Change in fair value of derivative financial instruments ,138 Profit before tax ,897 Tax Profit for the period / year ,220 Translation difference Comprehensive income for the period / year ,426 Profit attributable to: - parent company shareholders ,216 - holdings with no controlling influence Total comprehensive income attributable to: - parent company shareholders ,422 - holdings with no controlling influence Earnings per share before and after dilution, SEK

16 Consolidated statement of financial position Mar 31 Mar Assets Investment property 47,252 36,456 44,091 Fixed assets Financial fixed assets 1, Total non-current assets 48,322 37,468 45,089 Other assets Cash and cash equivalents Total current assets Total assets 48,772 38,136 45,692 Equity and liabilities Equity 15,324 10,308 15,169 Long-term interest-bearing liabilities 24,588 17,319 22,398 Derivative financial instruments 1,741 2,388 1,496 Deferred tax 2,790 2,142 2,695 Other liabilities Total non-current liabilities 29,142 21,949 26,614 Trade and other payables Short-term interest-bearing liabilities 3,661 5,160 3,123 Derivative financial instruments Total current liabilities 4,306 5,879 3,909 Total equity and liabilities 48,772 38,136 45,692 Interest-bearing liabilities - without security 4,123 2,955 3,049 - with security 24,126 19,524 22,472 Total 28,249 22,479 25,521 16

17 Consolidated statement of cash flows 2014 Jan-Mar Jan-Mar 3 months 3 months 12 months Cash generated from operations ,570 Interest paid ,249 Income tax paid Net cash generated from operations Investments in investment properties ,531 Purchase of investment properties -2, ,901 Sales of investment properties ,765 Increase/decrease in other fixed assets Net cash used in investing activities -2, ,570 New share issue - - 2,120 Capital injection Borrowings 2,789 2,772 9,361 Repayment of loans -46-2,043-6,122 Purchase of derivative instruments Group contribution Net cash from financing activities 2, ,283 Cash flow for the period / year Cash and cash equivalents at end of the period / year

18 Consolidated statement of changes in equity Share capital Share premium Other reserves Profit brought forward Holding without controlling influence Equity Equity ember , ,970 Profit for the year, Jan-Mar Other comprehensive income Equity 31 March , ,308 Share issue 183 1, ,120 Bonus issue Capital injection Appropriation Profit for the year, Apr-Dec , ,738 Other comprehensive income Equity ember 1,263 1, , ,169 Profit for the year, Jan-Mar Other comprehensive income Equity 31 March ,263 1, , ,324 18

19 Segment information Jan-Mar 2014 Sweden Germany Canada England Total Rental income Usage bonds costs Operating expenses Maintenance costs Site leasehold fee Property tax Property administration Operating surplus Change in fair value Total return Property fair value 27,065 23,885 16,253 12,571 1,825-2,109-47,252 36,456 Borrowings Duration Fixed interest rates Capital tied up Years Amount in Average interest, per cent Share, per cent Amount in Share, per cent 0-1 6, , , , , , , , , , , , , , > 1, , Total 28, ,

20 Statement of comprehensive income, parent company 2014 Jan-Mar Jan-Mar 3 months 3 months 12 months Rental income Property costs Operating surplus Other income and expenses Profit from sales of properties Profit from shares in subsidiaries Financial net Change in fair value of derivatives financial instruments Profit before provisions Appropriations Profit before tax Tax Profit for the period / year Comprehensive income for the period / year

21 Statement of financial position, parent company Mar 31 Mar Assets Fixed assets Financial fixed assets 11,079 9,719 14,308 Current assets 12, Total assets 23,403 10,001 14,399 Equity and liabilities Equity 6,848 3,507 7,022 Provisions Loans 3, ,440 Loans from group companies 12,044 5,133 4,678 Derivative financial instruments Trade and other payables 1, Total equity and liabilities 23,403 10,001 14,399 21

22 Key figures Mar Equity Equity, 15,324 15,169 9,970 8,567 8,211 Equity/assets ratio, per cent Risk capital to assets ratio, per cent Interest-bearing liabilities Loan-to-value, secured loans, per cent Loan-to-value, total loans, per cent Interest coverage rate, secured loans Interest coverage rate, total loans Fixed interest rates Average interest rate secured loans, per cent Average interest rate total loans, per cent Fixed interest term secured loans, year Capital tied up secured loans, year Properties Number of apartments 42,811 41,319 35,443 35,151 31,502 Rentable area, thousand sqm 3, ,576 2,632 2,424 Growth in rental income*, per cent Growth in operating surplus*, per cent Real vacancy rate residential, per cent Fair value properties, Opening 44,091 35,437 32,352 28,269 29,255 Exchange differences Change in fair value 404 1,569 2,671 1, Investments 277 1,531 1,493 1, Purchases 2,620 6,901 1,663 3, Sales -95-1,801-2,383-1,828-2,392 Closing 47,252 44,091 35,437 32,352 28,269 Fair value, per sqm 15,329 14,736 13,755 12,292 11,662 Required yield, per cent Change required yield*, per cent *) For comparable properties 22

23 Key figures Mar Properties Sweden Average residential rent, SEK /sqm/year 1,128 1,114 1,074 1, Growth in average residential rent*, per cent Growth in rental income*, per cent Growth in operating surplus*, per cent Fair value, 27,065 26,784 23,456 22,574 21,377 Fair value, SEK per sqm 14,307 14,115 13,809 12,055 11,435 Required yield, per cent Number of apartments 23,756 23,867 21,707 23,354 22,926 Properties Germany Average residential rent, EUR /sqm/month Growth in average residential rent*, per cent Growth in rental income*, per cent Growth in operating surplus*, per cent Fair value, 16,253 15,549 11,981 9,778 6,892 Fair value, SEK per sqm 15,407 15,398 13,649 12,903 12,623 Required yield, per cent Number of apartments 16,463 15,769 13,736 11,797 8,576 *) For comparable properties 23

24 Key figures Properties Canada** Mar Average residential rent, CAD /sqft/month Growth in average residential rent*, per cent Growth in rental income*, per cent Growth in operating surplus*, per cent Fair value, 1,825 1,758 1, Fair value, SEK per sqm 21,532 20,710 22,026 19,833 - Required yield, per cent Number of apartments 1,683 1,683 1, Properties England*** Average residential rent, GBP /sqft/month Growth in average residential rent*, per cent Growth in rental income*, per cent Growth in operating surplus*, per cent Fair value, 2,109 1,792 1, Fair value, SEK per sqm 41,283 36,430 32,730 22,872 - Required yield, per cent Number of apartments Employees Average number of employees *) For comparable properties **) The property portfolio in Toronto, Canada, was bought from a sister company at the end of. The table above shows the development as if Akelius Residential had owned the properties since ***) The property portfolio in England, was bought from a sister company during March The table above shows the development as if Akelius Residential had owned the properties since

25 Definitions Capital tied up Average capital tied up is calculated taking secured but unutilised credit commitments into consideration. Equity to assets ratio Equity in relation to total assets. Interest coverage ratio, secured loans Profit/loss before income tax with add-back of depreciations, impairment charges, the cost of property sales, interest expenses, changes in value of assets and liabilities in relation to interest expenses for secured loans. Interest coverage ratio, total loans Profit/loss before income tax with add-back of depreciations, impairment charges, the cost of property sales, interest expenses, changes in value of assets and liabilities in relation to interest expenses for all loans. Loan-to-value, secured loans Loan-to-value, total loans Secured interest-bearing liabilities in relation to total assets. Secured and unsecured interest-bearing liabilities in relation to total assets. Operating surplus margin Operating surplus in relation to rental income. Real vacancy rate The total number of vacant apartments less the number of apartments vacant due to renovation work in relation to the total number of apartments. Risk capital Equity, deferred tax liability and unsecured interest-bearing liabilities. Risk capital to assets ratio Risk capital in relation to total assets. Vacancy rate The number of vacant apartments in relation to the total number of apartments. 25

26 Agenda Interim report January-June...28 August 2014 Interim report January-September...29 November 2014 Sweden Svärdvägen 3A Box 104, S Danderyd Tel + 46 (0) Germany Leipziger Platz 14 D Berlin Tel + 49 (0) Canada 289 Niagara Street Toronto M6J 0C3 Tel + 1 (416) England 1 Earlham Street London WC2H 9LL Tel + 44 (0)