Magnolia Bostad Interim Report

Transcription

1 Q1 Magnolia Bostad Interim Report Group, January-March

2 January-March 2014 The period in brief Significant events during the period Net sales SEK 3.5 million Operating profit/loss: SEK -2.6 million Profit/loss after tax SEK -2.9 million Profit/loss per ordinary share: SEK Equity at the end of the period: SEK million Equity per share: SEK 5.98 In the first quarter of 2014, Magnolia Bostad signed a binding agreement to acquire the Orminge 52:1 property in Orminge Centre. The property currently consists of approximately 6,000 square meters of leased office, retail and warehouse space. A local planning process has been launched to obtain building permits for over 20,000 square meters of housing units, offices and retail outlets. Starting in 2016, Magnolia Bostad intends to build more than 300 upscale rental apartments and condominiums in Orminge Centre. In January, the company began production of 230 rental apartments at the Traversen 18 property in Sollentuna. The Aberdeen Residential Fund is the ultimate recipient of the residential property - and occupancy is planned for the spring of Significant events after the period In the second quarter of 2014, Magnolia Bostad acquired the Skogskarlen 1&3 office properties from Fabege. Located in an attractive area of Solna's Bergshamra District, the properties include 8,700 square meters of lettable office, warehouse and garage space with a panoramic view of Brunnsviken Bay. For the time being, the company intends to lease and manage the properties as office space. In the longer term, the properties have excellent prospects of being converted to attractive housing units. In April, Magnolia Bostad successfully floated a covered bond issue for a number of institutional and private investors in Sweden Despite the short notification period, the bonds were oversubscribed for by more than 300%. The four-year bonds totalled SEK 200 million at a fixed rate of 8%. The bonds will be listed on the NASDAQ OMX First North Exchange and traded as of June Key ratios Group Q Full year 2013 Sales (SEK million) Operating profit/loss (SEK million) Operating margin (%) Profit/loss after financial items (SEK million) Profit/loss for the year (SEK million) Cash flow from operating activities (SEK million) Return on equity (%) Equity/assets ratio (%) Earnings per share (SEK) Number of outstanding shares 31,288,942 31,288,942 Return on capital employed (%) Interest coverage ratio (multiple) Equity per share (SEK)

3 A word from the President Magnolia Bostad performed well in the first quarter of We closed two major deals that cover potential building permits for more than 400 housing units. In addition, we successfully floated a SEK 200 million bond issue. One of the deals was for the Orminge 52:1 property in Orminge Center, consisting of approximately 6,000 square meters of leased office and retail space. The property is an integral part of the expansion of Orminge centrum and a travel center is planned for the ground level of the property. A local planning process is under way to obtain building permits for over 300 housing units covering more than 20,000 square meters. The second deal was the acquisition from Fabege of the Skogskarlen 1&3 properties in Solna. Located in the Bergshamra District, the properties have 8,700 square meters of lettable space. They are fully occupied by a dozen tenants, Meda and BabyBjörn being the largest. Boasting a panoramic view of Brunnsviken Bay, proximity to Stockholm and excellent transportation options, the location of the properties is exceptionally attractive and offers excellent long-term potential for construction of appealing housing units. Pending the time when development can be initiated, the properties will contribute positively to the company's cash flow. Cash flow-generating investments with long-term potential for the development of housing units provide a solid financial foundation going forward. In April Magnolia Bostad successfully floated a covered bond issue for a number of institutional and private investors in Sweden Despite the short notification period, the bonds were oversubscribed for by more than 300%. The four-year bonds totalled SEK 200 million at a fixed rate of 8%. We are pleased that there was so much interest. The capital infusion strengthens the company's financial options for further expansion in coming years. The company reported net sales of SEK 3.5 million and an operating loss of SEK -2.6 million for the period. Loss after tax was SEK -2.9 million. No residential projects were sold during the period, and no significant project-related impact on earnings is expected before the second half of Stockholm, May 7, 2014 Andreas Rutili President Skogskarlen 1&3 properties The Skogskarlen properties in the Bergshamra District of Solna contain office space with a unique view of Brunnsviken Bay. The project has excellent potential due to its proximity to the scenic Haga Park and a private tennis court. Location: Solna Types of premises: Condominiums Total area: 8,700 square meters Number of condominiums: 100 Architects: Bau Arkitekter 3

4 Business trends Market The housing market in Sweden's metropolitan areas has heated up in recent quarters. The trend continued in the first quarter of According to the SBAB real estate broker survey, the increase will proceed in the second quarter, though somewhat more slowly. As opposed to the prediction of brokers in late 2013, housing supply declined further in early Meanwhile, demand rose faster than it had for almost five years while the gap between original list prices and final sales prices widened considerably. Houses and condominiums put up for sale are quickly sold, often even before there has been a scheduled showing. Given the housing shortage in many parts of Sweden, condominium prices may very well continue to increase. Condominium prices were up 4% nationwide. The increase in Stockholm and Gothenburg matched the national average, whereas Uppsala and Malmö rose by 3%. Project development During the first quarter, Magnolia Bostad focused on a new local plan for the Kungsängen 25:1 property in Uppsala. The effort is entering a review phase. Slated for completion in the fall of 2014, the process involves building permits for approximately 1,500 housing units. The company expects to enter the sales phase in two projects later this year. Sales of Kvarngärdet in central Uppsala will begin this summer. The property consists of approximately 90 rental apartments with a total area of 6,000 square meters. During the fall, sales at Trapphuset, which has 85 rental apartments and covers 6,000 square meters, will begin. In January, Magnolia Bostad started production at the Traversen 18 project in Sollentuna. The property consists of 230 rental apartments with a total area of 13,600 square meters. Aberdeen Residential Sweden AB is the ultimate owner and occupancy is planned for Organizational structure Suzana Bossel joined the management team in the newly created position of Director of Concepts and Branding in February. She has previously worked for JM, Arkitekthus and Ettelva Arkitekter. An additional two new employees joined the company during the period. The Magnolia Bostad management team now consists of six people. At the end of the period, the organization included ten employees and two full-time consultants. Residential projects Breakdown by phase (square meters) Breakdown by location (square meters) Breakdown by type of unit (square meters) Local plan Concept development Sales Construction Uppsala Stockholm Other Rental apartments Condominiums 4

5 Traversen 18 Traversen 18 in Sollentuna is among the Stockholm area's biggest rental apartment projects at the moment. The rental apartments are being built centrally in proximity to good transportation options and community services. Location: Sollentuna Type of unit: Rental apartments Total area: 13,600 square meters Number of rental apartments: 230 Architect: Lindberg Stenberg Arkitekter Scheduled date for tenants to move in

6 Financial performance Income and earnings The group's net sales for the first quarter of 2014 were SEK 3.5 million Operating loss of SEK -2.6 million was affected primarily by operating costs and other operating expenses. Operating margin was -74.2%. With net financial expense of SEK -0.4 million, the company reported a loss of SEK -2.9 million for the period. Balance sheet total Magnolia Bostad's balance sheet total has almost doubled over the past two years and will continue growing in the next few years. The balance sheet total was SEK million as of March 31. Equity declined to SEK million. The equity/assets ratio rose from 51.4% on December 31, 2013 to 52.6%. Cash flow and financing Cash flow from operating activities totaled SEK million on March 31. No investments were made during the first quarter, but operating capital decreased by SEK million. Borrowings came to SEK million on March 31. The group had available liquidity of SEK 6.6 million at its disposal. Magnolia Bostad floated a bond issue of SEK 200 million after the reporting period. Stock Holmström Fastigheter AB, in which Fredrik Holmström has a controlling interest through companies, holds a 69.6% interest in Magnolia Bostad. As of March , the company had issued 31,288,942 shares to 25 stockholders. The stock is not traded on an active market. Balance sheet total and equity (SEK thousand) 400, , , ,000 0 Full year 2011 Full year 2012 Full year 2013 Q Balance 400 sheet 000total Equity

7 Consolidated income statement SEK thousand 1/1/2014 3/31/2014 1/1/2013 3/31/2014 Operating income Net sales 3, ,576 Total income 3, ,576 Operating expenses Production and operating costs -1, ,631 Other external costs -1,541-7,740 Personnel costs -2,157-5,541 Depreciation, amortization and impairment of property, plant and equipment and intangible assets Operating profit/loss -2,567 23,710 Profit/loss from financial income and expense Interest income and similar profit/loss items 745 3,062 Interest expense and similar profit/loss items -1,115-6,262 Profit/loss before tax -2,937 20,510 Tax on profit/loss for the year 8 NET PROFIT/LOSS FOR THE PERIOD -2,937 20,518 7

8 Consolidated balance sheet SEK thousand 3/31/ /31/2013 ASSETS Non-current assets Intangible assets Goodwill 6,846 7,146 Other intangible assets Total intangible assets 7,141 7,460 Property, plant and equipment Equipment, tools, fixtures and fittings Total property, plant and equipment Financial assets Participations in associated companies 1,575 4,525 Receivables from associated companies 23,541 26,541 Other securities held as non-current assets 30,614 30,614 Other long-term receivables 17,950 14,950 Total financial assets 73,680 76,630 Total non-current assets 81,024 84,307 Current assets Inventories, etc. Property held for resale 212, ,608 Total inventories, etc. 212, ,608 Current receivables Accounts receivable 441 1,507 Receivables from associated companies 51,452 46,973 Tax assets 116 Other receivables 3,300 3,714 Prepaid expenses and accrued income Total current receivables 55,877 52,526 Cash and bank balances 6,590 23,256 Total current assets 275, ,390 TOTAL ASSETS 356, ,697 8

9 Consolidated balance sheet (cont'd) SEK thousand 3/31/ /31/2013 EQUITY AND LIABILITIES Equity Restricted equity Share capital 125, ,156 Total restricted equity 125, ,156 Non-restricted equity Non-restricted reserves 64,907 44,389 Net profit/loss for the year -2,937 20,518 Total non-restricted equity 61,970 64,907 Total equity 187, ,063 Liabilities Long-term liabilities Liabilities to credit institutions 146, ,130 Other long-term liabilities 4,000 Total long-term liabilities 146, ,130 Current liabilities Liabilities to credit institutions 6,000 2,000 Accounts payable 2,615 6,465 Liabilities to the parent company 11,089 12,311 Liabilities to associated companies 13 3,904 Income tax liabilities 15 Other current liabilities 815 1,062 Accrued expenses and deferred income 2,367 3,747 Total current liabilities 22,899 29,504 Total liabilities 168, ,634 TOTAL EQUITY AND LIABILITIES 356, ,697 9

10 Consolidated cash flow statement SEK thousand Operating activities Profit/loss after financial items -2,937 20,510 Adjustments for non-cash items, etc. 3,268-30,636 Income tax paid Cash flow from operating activities before changes in working capital ,170 Cash flow from changes in working capital Decrease(+)/increase(-) in property held for resale -2,976-36,748 Decrease(+)/increase(-) in current receivables -3,235-1,754 Decrease(+)/increase(-) in current liabilities -10,590 2,088 Cash flow from operating activities -16,602-46,584 Investing activities Acquisition of intangible fixed assets -58 Acquisition of property, plant and equipment -19 Investment in financial assets -21,975 Disposal/reduction of financial assets 500 Cash flow from investing activities -21,552 Financing activities Shareholders contributions received 55 Borrowings 77,324 Repayment of borrowings -64-5,897 Cash flow from financing activities ,482 Cash flow for the year -16,666 3,346 Cash and cash equivalents at the beginning of the year 23,256 19,910 Cash and cash equivalents at the end of the year 6,590 23,256 10

11 Financial calendar January-June 2014 interim report: August 18, 2014 January-September 2014 interim report: November 10, 2014 Contact Magnolia Bostad AB Riddargatan 19 SE Stockholm, Sweden Phone: For additional information, please contact: Andreas Rutili, President Kvarngärdet 28:6 and 28:7 Magnolia Bostad will be building two rental apartment buildings in one of Uppsala's most attractive, centrally located districts. The 90 units will range from efficient studio rental apartments to spacious five-room rental apartments with private balconies. The patio on the roof will provide an opportunity for residents to get together and admire the enchanting view of the city. Location: Central Uppsala Type of unit: Condominiums Total area: 6,000 square meters Number of condominiums: 90 Architect: Love Arbén and Projektengagemang kring Arkitektur Scheduled date for residents to move in