Interim report 1 Jan -30 June Kari Inkinen CEO

Transcription

1 Interim report 1 Jan -30 June 2007 Kari Inkinen CEO 1

2 2 Market review

3 GDP growth % Finland Euro Area United States Japan * 2007** 2008** ** Estimated growth 3 Source: Statistics Finland, Ministry of Finance, KTI

4 Finnish economy 2007, estimates GDP change 3.2 % (2008: 2.8 %) Inflation estimate 2.5 % (2008: 2.4 %) Unemployment rate in June 2007: 7.4 % (2007: 6.7 % and 2008: 6.4 %) Employment rate in June 2007: 73.5 % Private consumption 3 % (2008: 2.8 %) 4 Source: Statistics Finland, Tapiola

5 Transaction volume ,0 5,0 1000MEUR 4,0 3,0 2,0 1,0 0, / H1 5 Source: KTI

6 6 Prime property yields in Helsinki CBD residential office retail 7,5 % 7,0 % 6,5 % 6,0 % 5,5 % 5,0 % 4,5 % Source: KTI s barometre survey

7 Sponda Varma Ilmarinen Tapiola-yhtiöt Kuntien Eläkevakuutus VVO** Citycon YH-Suomi** Sato RBS Nordisk Renting** Northern European Properties Etera Eläke-Fennia OP-ryhmä (eläke- ja henkiyhtiöt) Wereldhave Finland Nordea Henkivakuutus Veritas (Eläke- ja Henkivakuutus) Suomi-yhtiö Aberdeen s funds' investments in Finland**** Boultbee* Doughty Hanson & Co Bronda Properties**** Technopolis Genesta Property Nordic** NIAM I/S EjendomsInvest Curzon / IXIS AEW Europe*** Norgani Hotels* IVG Polar Fennia ja Henki-Fennia* 7 Source: KTI Largest property investors in Finland (by fair value) Institutional investors Unlisted property companies Listed property companies International investors * Based on transaction values *** Q3/2006 ** Book value **** January ,5 1 1,5 2 2,5 3

8 Average gross rental levels in CBD offices eur/m 2 / month 30 Helsinki Espoo Turku Tampere ( ) Source: KTI

9 Office construction in HMA Q1/ kem 2 Approved Started Completed Source: KTI, Statistics Finland

10 Office projects in HMA PROJECT LOCATION GROSS M² ESTIMATED COMPLETION VARMA HEAD OFFICE HELSINKI, SALMISAARI / 2008 VISIO BUSINESS CENTER HELSINKI, PASILA syksy 2008 KARA MID POINT ESPOO, KARAMALMI / 2008 PANORAMA TOWER ESPOO, LEPPÄVAARA / 2007 IF INSURANCE, new building and renovation of old premises ESPOO, NIITTYKUMPU / 2007 HTC KEILANIEMI, I phase ESPOO, KEILANIEMI summer 2008 SWING LIFE SCIENCE CENTER, phase 5 ESPOO, KEILANIEMI / 2007 BUSINESS PARK MANKKAA, II phase ESPOO, MANKKAA / 2007 OPUS BUSINESS PARK, III phase HELSINKI, HERTTONIEMI / 2008 AIRPORT PLAZA 2, VIVACE VANTAA, AVIAPOLIS / 2008 NCC HOUSES, III phase HELSINKI, RUSKEASUO / 2007 FALCON BUSINESS PARK, I phase ESPOO, OTANIEMI / Source: KTI, Reed Business Information

11 Shopping Centre Retail development projects, HMA 2005 Attendance M Shopping centres and retail parks Existing Under construction Planned 2005 Sales M Itäkeskus 22,0 427 Jumbo 6,2 250 Iso Omena 8,7 195 Sello 11,0 188 Forum 14,0 160 Myyrmanni 7,1 158 Ruoholahti 3,3 ESPOO 129 Malmin Nova 7,3 77 Columbus 7,0 65 Lommila Retail Park Kämp Galleria 3,3 57 Lippulaiva 3,3 53 Arabia 2,0 36 Espoontori 3,3 31 Tikkuri 2,8 31 Heikintori 2,4 29 Isomyyri 2,2 29 Kluuvi 3, Myyrmanni Myyrmanni, extension Kannelmäki Bauhaus Plantagen Jumbo Retail, Tammisto Malmintori Koivukylä Tikkuri Retail Park Porttipuisto Malmin Nova Hakunila Grandis Glomson Retail Park Galleria Ogeli Grani Sello Pitäjänmäki Viikki Espoon keskus Entresse Arabia Lanterna Lanterna, Espoontori Retail Park HELSINKI Itäkeskus extension Laajalahti Columbus Heikintori Megahertsi Heikintori, extension Kalasatama City Center Kaisa Merituuli Kampin keskus Martinsilta Kluuvi Forum Kämp Galleria Iso Omena Plantagen Bauhaus Ruoholahti Lippulaiva Lippulaiva, extension Petas Retail Park Petikko Retail Park Marja-Vantaa Isomyyri VANTAA Retail Park Vantaanportti Itäsalmi

12 12 Results

13 in brief 4-6/ / / / /2006 Total revenue, meur Net operating income, meur Operating profit, meur Profit for the period, meur Earnings / share, eur Operating cash flow / share, eur Fair value of properties, meur NAV / share, eur * Economic occupancy rate, % * Includes deferred tax liability of 1,8 euros/share

14 Profit & loss statement 4-6/2007 meur 4-6/2006 meur 1-6/2007 meur 1-6/2006 meur 1-12/2006 Meur Total revenue 48,4 26,5 107,5 53,3 117,4 Maintenance expenses -12,0-6,4-30,7-12,7-29,8 Net operating income 36,4 20,1 76,8 40,6 87,6 Profit on sale of inv. properties -0,2-1,1 - - Valuation gain / loss 9,4 5,0 56,4 10,2 26,2 Profit on sale of trading properties 5,2-26,8-1,6 SGA expenses -8,1-2,3-15,4-4,8-11,9 Other operating income/expenses 0,4 0,3 0,8 0,3 0,4 Operating profit 43,1 23,1 146,5 46,3 103,9 Financial income and expenses -13,4-7,7-38,7-14,4-38,5 Profit before taxes 29,7 15,4 107,8 31,9 65,4 Taxes from previous and current fin. years - -0,4 - -0,4-0,4 Deferred taxes -7,7-3,9-28,1-7,9-16,7 Net income for the period 22,0 11,1 79,7 23,6 48,3 14

15 Balance sheet ASSETS meur meur meur Long-term assets 2 475, , ,9 Short-term assets 79,6 294,3 5,9 Assets total 2 555, , ,8 SHAREHOLDERS EQUITY AND LIABILITIES Shareholders equity total 882,7 592,8 564,3 Long-term liabilities Interest-bearing debt 1 100,6 658,2 479,1 Liabilities 14,5 22,7 0,8 Deferred tax liabilities 199,2 218,7 71,2 Long-term liabilities total 1 314,3 899,6 551,1 Short-term liabilities 358, ,0 245,4 Liabilities total 1 672, ,6 796,5 Shareholders equity and liabilities 2 555, , ,8 15

16 Economic vacancy rate Sponda (figures withouth the Kapiteeli portfolio) 16,01 14,0 1 12,0 1 10,0 1 8,0 6,0 4,0 2,0 0,0 Office & retail Logistics Total property portfolio Russia and the Baltic Ctries 10.3 % 10.5 % 10.2 % 0 % /

17 Lease contracts ,0 % 20,0 % 15,0 % 10,0 % Future cash flows 755 meur Average length of contracts 4.3 years O&R 4,7 years Log 2,6 years 5,0 % 0,0 % 1 yr 2 yrs 3 yrs 4 yrs 5 yrs 6 yrs over 6 yrs Openended 17

18 Yield requirements in property valuation 30 Jun 2007, % Sponda CBD Helsinki/Vantaa Espoo Turku Tampere Oulu Office and retail 5,4-6,5 5,5-7,6 6,8-7,75 7,0-8,0 Logistics 7,5-8,25 7,5-8,25 18

19 Cash yield for fair value 10,0 % 8,0 % 6,0 % 4,0 % 2,0 % 0,0 % Office & retail Logistics Russia Total 6.1 % 8.2 % 10.5 % 6.4 % 19

20 Financing /2007 Q1/ Equity ratio 35 % 36 % 20 % Average interest rate 4.5 % 4.6 % 4.6 % Hedging 87 % 88 % 74 % Average loan maturity 3.1 yrs 1.8 yrs 1.7 yrs Average interest-bearing period 3.5 yrs 3.3 yrs 1.7 yrs Interest cover

21 Loan maturity % 21 % 25 % Total amount of interestbearing debt EUR 1 409,6 million 14 % 1 % 25 % 7 %

22 Sponda Plc Operational review 22

23 Property portfolio Properties divided by fair value, EUR million Office and retail properties divided by leasable area, altogether m² 8 % 1 % 25 % 12 % Office & Retail Logistics Property Development Office Retail 79 % Russia & the Baltic Countries 75 % 23

24 Office & retail and logistics properties by geographical area Office & retail and logistics properties divided by leasable area, 1,3 milj. m². Office & retail and logistics properties (EUR 2 101,2 million) divided by fair value, 5 % 3 % 2 % 6 % 3 % 2 % HMA Tampere Turku Oulu HMA Tampere Turku Oulu 90 % 89 % 24

25 25 Events for the period Acquisitions in Russia for EUR 20 million In April Sponda issued EUR 150 million bond Private Placement floating-rate bond to domestic institutional investors Maturity 4 years Coupon confirmed as three-month Euribor plus 0.40 %-points Sponda signed EUR 350 million syndicate credit facility in June 2007 Maturity 5 years Loan carries a margin at the beginning of the loan period of Euribor plus %- points. City-Center, Helsinki

26 Events for the period 26 Three property development projects started Vuosaari harbour Logistics centre constuction started Ground works for office buidling and passenger terminal on-going Noste, Porkkalankatu 22 Office building in Ruoholahti Estimated investment EUR 29 million 70 % pre-let Vanhanlinnantie 3 Retail building near Itäkeskus shopping centre Total investment approximately EUR 56 million Fully pre-let

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28 Office and Retail properties Leasable area of properties m² in total Fair value of properties on 30 June 2007 was EUR million, value change Jan- June EUR 41.7 million Acquisition of Museokatu 8 for EUR 6.8 million (of which Sponda now owns 100 %) 4-6/ / / / /2006 Total revenue, meur Net operating income, meur Operating profit, meur Economic occupancy rate, % % Geographical division of office and retail properties by fair value 25 % 42 % CBD Ruoholahti HMA Others %

29 Logistics properties Leasable area of properties m² in total Fair value of properties on 30 June 2007 was EUR million, fair value change during Jan-June was EUR 14.8 million Acquisition of Ruosilantie 18 for EUR 4.6 million Divestment of Matinpurontie for EUR 3.6 million of which Sponda booked a profit of EUR 1.8 million 4-6/ / / / /2006 Total revenue, meur Net operating income, meur Operating profit, meur Economic occupancy rate, %

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31 Active property development PROJECT PROGRESS LEASABLE M² INVESTMENTS TO DATE City-Center Second phase Additional m² Vuosaari harbour Retail building, Itäkeskus Office building, Porkkalankatu Office building, Sörnäinen Logistics building, Vantaa Ratina, Tampere Started Logistics m² (1st phase), in total m² Office + passenger terminal m² TOTAL INVESTMENT 35 meur 110 meur meur 95 meur (First phase), in total 140 meur Started m² 0,7 meur 56 meur 2008 Started m² 0,2 meur 29 meur 2008 Starting m² N/A 22 meur 2008 Starting m² N/A 5 meur 2008 N/A m² N/A 200 meur N/A COMPLETIO N 2008 (First phase) 31

32 Some of Sponda s future projects in the development pipeline PROJECT Office building, Pasila (in co-operation with Yle Pension Fund) ~ 2009 Office building, Salmisaari, Ruoholahti (renovation) PLANNED START OF THE PROJECT TOTAL INVESTMENT 95 meur (Sponda s share 60 %, 57 meur) ~ meur Office building, Ruoholahti ~ meur Retail, Turku (Kauneenkulma) ~ meur Office building, Ruoholahti ~ meur Office building, Vantaa (Aviapolis), I phase ~ meur - The requirements for any of the projects listed are to have at least 50 % pre-let and all planning processes approved by authorities - The listed pipeline, together with the active property development projects, will amount to annual investments of approx. EUR million Logistics building, Vantaa (Honkatalo) 10 meur Office building, Ring I, Helsinki ~ meur Office building, Naulakatu, Tampere ~ meur 32

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34 Real Estate Funds Sponda manages assets in three different funds, two of which it also is an equity investor Currently assets under management total EUR 625 million 1. An office and retail fund where co-ownership is with JE Roberts Sponda holds 20 % stake Fund invests in mid-sized cities outside Sponda s core market On 30 June 2007 the fair value of properties in the fund was EUR million Target size EUR million Fund maturity 5 years 34

35 Real Estate Funds 2. Sponda Real Estate Fund I Ky where partners are 7 Finnish institutional investors Sponda holds 46 % stake Fund invests in logistics properties in mid-sized cities outside Sponda s core market On 30 June 2007 the fair value of properties in the fund totalled EUR million Target size EUR 200 million, fund maturity 10 years 3. Sponda manages a real estate portfolio for EUR 400 million to Whitehall Street Real Estate Funds and Niam Nordic Investment Fund III Sponda sold the portfolio in March 2007 as part of the Kapiteeli acquisition financing Portfolio included 43 investment properties and over 500 trading properties and land sites 35

36 Russia and the Baltic Countries Acquisitions during second quarter A 46 hectare site in Leningrad province for EUR 9.5 million Future development site m² of logistics facility planned A 20 hectar site in Moscow region for EUR 6 million Site has zoning plan for the construction of an industrial park Sponda plans to develop an A-class logistics park of m² in stages Planning in progress, construction estimated to start in 2008 Office building in St Petersburg for EUR 4 million 36

37 Sponda s office Logistics site Office building, Tambovskaja Street Logistics building

38 Inform Future - location Fully let for domestic and international tenants Total leasable area 2690 m² 38

39 IR contacts: Kari Inkinen President and CEO Tel: Robert Öhman CFO Tel: Pia Arrhenius Manager, Corporate Communications and IR Tel:

40 Appendix

41 Rental levels , HMA Gross rent /m2/month (excl. VAT), New agreements /m 2 /month Helsinki, ydinkeskusta, Prime Helsinki, ydinkeskusta Tapiola Tikkurila Keilaniemi, Prime Ruoholahti, Prime Aviapolis, Prime i Source: Catella Property Group

42 Vacancy rate , HMA 14 % ,9 % 6 4,8 % 4 2 2,5 % 1,7 % Retail Office Warehouse&industrial All premises together ii Source: Catella Property Group

43 HMA Office Market HELSINKI METROPOLITAN AREA, OFFICE STOCK, VACANCY RATE UPPER RENTAL LEVEL* PRIME YIELD ** OFFICE MARKET NET FLOOR AREA % - yksikköä Helsinki City Centre - Helsinki CBD 312 m2/year 4,9-5,4% m2 6,3 % 0,1% - Helsinki Centre (incl. CBD) n.a. n.a m2 5,4 % 1,2% Inner City 180 m2/year 6,2-6,7% m2 7,9 % 1,7% Ruoholahti 246 m2/year 5,9-6,3% m2 6,7 % 1,9% Keilaniemi 258 m2/year 5,9-6,3% m2 12,0 % 1,9% Espoo West, (modern space) 216 m2/year 6,4-7,0% m2 10,8 % 0,5% Leppävaara Business Park area 222 m2/year 6,3-6,7% m2 7,8 % 1,4% Herttoniemi, (modern space) 204 m2/year 6,8-7,2% m2 n.a. n.a. Aviapolis Airport Area 222 m2/year 6,4-6,8% m2 5,4 % 4,2% Helsinki Metropolitan Area n.a. n.a m2 7,9 % 0,6% Aviapolis Vantaa Ring III Hämeenlinna Highway Tuusula Highway Espoo Ring I Leppävaara Lahti Highway Ring II Turku Highway Helsinki Inner City Herttoniemi Source: Catella Property Group iii Espoo West Western Highway Keilaniemi Ruoholahti CBD Centre Eastern Highway

44 Building stock m² RETAIL OFFICE WAREHOUSE&INDUSTR. COMMERCIAL, TOTAL m 2 m 2 m 2 m 2 Helsinki MPA Tampere Turku Oulu Lahti Jyväskylä Kuopio Vaasa Rovaniemi Joensuu Lappeenranta Seinäjoki Total Finland iv Source: Catella Property Group

45 Major shareholders Shareholder No of shares % of total shares 1. The Finnish State ,3 2. The State Pension Fund ,63 3. Etera Mutual Pension Insurance Company ,38 4. Yleisradion Eläkesäätiö S.r ,31 5. Support Fund for commercial and technical sciences ,24 6. Livränteanstalten Hereditas ,21 7. Åbo Akademi University Foundation ,15 8. Bnp Arbitrage ,14 9. Medicinska Understödsföreningen Liv och Hälsa , OP-Finland Value Fund ,1 v Nominee registered shareholders: pcs, 55.7 %