Welcome to Kungsleden

Transcription

1 Welcome to Kungsleden

2 Chief Executive Thomas Erséus Deputy Chief Executive Johan Risberg 21 October 2010

3 Kungsleden in brief Owns and manages properties generating high and stable long-term returns Returns more important than property type and location Returns cannot be judged without considering risk levels 559 properties reported at SEK 21.8 (21.9) bn as of 30 September 2010 Commercial properties 43% (46) Public properties 43% (39) Modular buildings 7% (7) Retirement homes Germany 7% (8) 24,700 shareholders. 45% of shares held by private individuals and approximately a quarter by foreign shareholders. Ten largest shareholders control 19.1% of capital and votes

4 Profit for calculating dividends SEK m Jan-Sep Jan-Sep Gross profit 1,160 1,398 Sales and administration costs Net financial position Sub-total Realised items Trading net at divestment Realised value changes, properties 2 1,171 Realised value changes, financial instruments Sub-total Taxes payable Profit for calculating dividends 379 1,016

5 Third quarter in brief Profit for the period generally stable Acquisition of 12 properties for a value of SEK 839 m and a property yield of 7.5% Divestment of 41 properties for SEK 1,028 m and a property yield of 6.5% Rental revenues remain stable despite increased vacancies in six commercial properties. Average fixed-interest term extended from 2.6 to 5.2 years

6 Customers and lettings New tenants include Mechanum, Isringhausen and Fraktkompaniet New lettings with annual rental value of SEK 53 m Vacancies mainly concentrated on six commercial premises in Burlöv, Kungsbacka, Botkyrka, Sollentuna, Gävle and Umeå Average vacancy of 8.7% for the group (6.2) and 7.0%, excl. the above properties Project Manager hired, upscaled marketing, addressing municipalities, considering potential partnerships, tenant adaptations or conversions Generally positive momentum in letting operations

7 Current market conditions Kungsleden s lettings market Generally stable lettings Slight increase in vacancies from low levels Financial market Continued easing on credit market Strong capital flows to the property sector Alternative funding sources attractive Transaction market Recovery with surprisingly high volumes Continued firm competition over properties Clearer trend of price increases on properties

8 Property portfolio

9 Our properties by type

10 Kungsleden s Q in figures

11 Income Statement SEK m Rental revenues 1,577 1,841 Sales revenues, modular buildings Net sales 1,705 2,015 Gross profit 1,160 1,398 Trading net Sales and administration costs Net financial position Unrealised value changes Profit before tax Tax Profit after tax for the period

12 Income Statement SEK m Rental revenues 1,577 1,841 Sales revenues, modular buildings Net sales 1,705 2,015 Gross profit 1,160 1,398 Trading net Sales and administration costs Reduction due to part-sale of Public Properties and negative rental indexation for Rental revenues reduced by 2% in like-for-like terms. Net financial position Unrealised value changes Profit before tax Tax Profit after tax for the period

13 Income Statement SEK m Rental revenues 1,577 1,841 Sales revenues, modular buildings Reduced demand due to recession Net sales 1,705 2,015 Gross profit 1,160 1,398 Trading net Sales and administration costs Net financial position Unrealised value changes Profit before tax Tax Profit after tax for the period

14 Income Statement SEK m Rental revenues 1,577 1,841 Sales revenues, modular buildings Net sales 1,705 2,015 Gross profit 1,160 1,398 Trading net Down 17%, or 5% excluding Hemsö transaction. Indexation and higher snow clearance and heating costs the main reason Sales and administration costs Net financial position Unrealised value changes Profit before tax Tax Profit after tax for the period

15 Income Statement SEK m Rental revenues 1,577 1,841 Sales revenues, modular buildings Sales price above book value. Net sales 1,705 2,015 Gross profit 1,160 1,398 Trading net Sales and administration costs Net financial position Unrealised value changes Profit before tax Tax Profit after tax for the period

16 Income Statement SEK m Rental revenues 1,577 1,841 Sales revenues, modular buildings Lower admin. mainly because of part-sale to AP3 Net sales 1,705 2,015 Gross profit 1,160 1,398 Trading net Sales and administration costs Net financial position Unrealised value changes Profit before tax Tax Profit after tax for the period

17 Income Statement SEK m Rental revenues 1,577 1,841 Sales revenues, modular buildings Net sales 1,705 2,015 Positive change mainly explained by lower loan volume in Gross profit 1,160 1,398 Trading net Sales and administration costs Net financial position Unrealised value changes Profit before tax Tax Profit after tax for the period

18 Income Statement SEK m Rental revenues 1,577 1,841 Sales revenues, modular buildings Net sales 1,705 2,015 Gross profit 1,160 1,398 Trading net Sales and administration costs Net financial position Positive value change on properties of SEK 106 m, or 0.5% of book value. Negative value change on financial instruments of SEK m, due to falling long yields. Unrealised value changes Profit before tax Tax Profit after tax for the period

19 Income Statement SEK m Rental revenues 1,577 1,841 Sales revenues, modular buildings Includes positive effect of property divestments. Net sales 1,705 2,015 Gross profit 1,160 1,398 Trading net Sales and administration costs Net financial position Unrealised value changes Profit before tax Tax Profit after tax for the period

20 Income Statement SEK m Rental revenues 1,577 1,841 Sales revenues, modular buildings Net sales 1,705 2,015 Gross profit 1,160 1,398 Lower figure mainly due to a smaller portfolio after divestments over the past year. Trading net Sales and administration costs Net financial position Unrealised value changes Profit before tax Tax Profit after tax for the period

21 Balance Sheet SEK m Assets 30 Sep 31 Dec Goodwill Properties 21,800 21,860 Receivables, etc. 1,701 1,466 Cash and cash equivalents Total assets 24,338 24,208 Equity and liabilities Equity 6,818 7,079 Interest-bearing liabilities 13,898 14,437 Non-interest-bearing liabilities 3,622 2,692 Total equity and liabilities 24,338 24,208

22 Maturity structure, interest fixings As of 30 September 2010 Loan, SEK m ,888 Interest derivatives, SEK m Ave. interest, % , , , , , Average fixed interest term, years Total derivatives 14, Total loans 13, Market value of loans and derivatives 1,275 Total 15,163

23 Maturity structure, credits (including un-utilised credit facilities) As of 30 September 2010 Utilised credits, SEK m Un-utilised credits, SEK m Total credits, SEK m , , ,607 3,300 11, ,166 2, Total 13,888 3,954 17,841 Average conversion term, years Equity ratio 30 Sep 10 28% 31 Dec 09 29% 30 Sep 09 30% Mortgage ratio

24 Underlying profits, 2000-Q3 2010

25 10 largest shareholders (% of votes & capital) Nordea fonder 3.3 Länsförsäkringar fonder 2.8 SHB fonder 2.3 Olle Florén and companies 2.3 Norwegian Government 1.9 Danske Invest fonder (Sweden) 1.4 AP4 1.4 Swedbank Robur Fonder 1.3 AP2 1.3 Avanza Pension Försäkring AB Source: SIS Ägarservice

26 Focus for the remainder of 2010 Focus on cash flow, enhancing the portfolio and long agreements Measures ongoing in a limited number of properties with somewhat higher vacancy levels Financial room to act broader base of alternative funding sources Work on creating a standalone Hemsö continues as planned Sharp increase in activity and interest in properties should benefit Kungsleden

27 The share to end of October 2010

28 Total yield to end of October 2010

29 Any questions?