January–December 2019
• Rental income increased 14 percent driven primarily by a growing property portfolio. The increase for the comparable portfolio was 3.5 percent.
• Net operating income increased 15 percent, of which 3 percent in the comparable portfolio.
• The surplus ratio was strengthened by almost half a percentage point. Operating expenses were charged with non-recurring costs for the current quarter while the corresponding quarter in the preceding year reported non-recurring income.
• Profit from property management increased 12 percent, primarily driven by a larger property portfolio.
• Unrealized changes in value amounted to just over SEK 1.5 billion, which corresponds to an increase of 4.2 percent compared with the value at the start of the year. Valuation yields declined somewhat during the fourth quarter.
• Profit after tax rose 18 percent.
• The property value increased 15 percent.
• Net asset value (EPRA NAV) increased to SEK 89 per ordinary share.
Significant events during and after the quarter
• SBB made a public offer for Hemfosa at the end of 2019 and has now acquired more than 90 percent of the shares in Hemfosa and initiated a compulsory redemption process. Work evaluating the bid led to non-recurring costs for Hemfosa of MSEK 40, which were charged in full to the fourth quarter.
• Hemfosa’s shares were delisted from Nasdaq Stockholm on January 31. An Extraordinary General Meeting will be held on February 19, see page 10.
• As SBB has become the new major shareholder in Hemfosa, exemptions were negotiated to the change of control clauses in the loan agreements. Moreover, bank loans of just over SEK 8 billion were repaid early and replaced with internal loans.
• Hemfosa won a land allocation competition in Falun and will build about 15,000 sqm in a property block in central Falun. In addition, three school projects began – in Haninge, Norrköping and Eskilstuna – with a total project volume of approximately MSEK 400.
• Hemfosa increased its shareholding in the associated company Offentlig Eiendom through the investment of MSEK 115 in a new issue of shares. Its shareholding now amounts to 40 percent.
• Acquisitions were completed in Finland and Sweden:
– In November, possession was taken of two properties, in Tampere and Oulu. These had an underlying property value of about MSEK 600, with the public broadcasting company YLE and Oulu University Hospital as the largest tenants.
– Possession of a portfolio of 11 properties for healthcare and adapted housing across Finland was taken in December. The underlying property value was approximately MSEK 520.
– In December, an agreement was reached concerning the acquisition of two properties in Borås at an underlying property value of approximately MSEK 130, with the municipality as the largest tenant. Possession of these properties was taken at the beginning of February.
• A three-year green bond loan in an amount of MSEK 800 was issued at a margin of 210 bps..
For further information, please contact:
Peter Anderson, CFO, +46 70 690 65 75, [email protected]