Kungsleden presents the second quarter 2011
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Transcript of Kungsleden presents the second quarter 2011
Welcome to Kungsleden
2nd Quarter 2011
Kungsleden in brief
Owns and manages properties generating high and stable
long-term returns
Returns more important than property type and location
Returns can not be judged without considering the property’s risk levels
635 (592) properties, of which 298 part-owned via Hemsö,
reported at SEK 26.1 (21.5) bn as of 30 June 2011
Commercial properties 53 per cent (45)
Public properties 41 per cent (48)
Modular buildings 6 per cent (7)
21,700 shareholders. 40 per cent of shares held by private individuals
and approximately one-third by foreign shareholders.
Ten largest shareholders control 20.4 per cent of capital and votes
Profit for calculating dividends
2011 2010
SEK m Jan-Jun Jan-Jun
Gross profit 838 752
Sales and administration costs -162 -137
Net financial position -415 -364
Sub-total 261 252
Realised items
Trading net on sale 23 14
Realised value changes, properties 5 -13
Realised value changes, financial instruments -31 -4
Sub-total -3 -3
Taxes payable -35 -30
Profit for calculating dividends 223 219
Second quarter in brief
■ Stable quarter with recent acquisition NR Nordic & Russia Properties
contributing as planned
■ Net sales increase by 31 per cent to SEK 747 m and gross profit by 22
per cent to SEK 485 m
■ Module sales rise by 65 per cent to SEK 76 m
■ Profit after tax up to SEK 102 (80) m
■ 6 properties purchased for a value of SEK 362 m
■ 1 property sold for a value of SEK 25 m
SEK 4.2 bn growth first half year
Office and industrial properties
36 properties for SEK 3.6 bn
10 per cent property yield
ABB at Västerås occupies 39 per
cent of area
Office property in Kista
SEK 148 m at a property yield of
7.4 per cent
Majority let to Office Management
on a 10-year lease
SEK 4.2 bn growth first half year
Warehouse property in
Upplands Väsby
SEK 97 m at a property yield of 7.4
per cent
Jobman Workwear renting the
whole property on a five-year lease
Industrial property in Motala
SEK 52 m at a property yield of 11
per cent
Motala Verkstad is tenant on a
17-year lease
SEK 4.2 bn growth first half year
Offices and housing in Trollhättan
SEK 194 m at a property yield of
7.6 per cent
Formerly Trollhättan Hospital,
current tenants include the City of
Trollhättan, Siemens and Kone
Elevators
Possibility of housing development
rights of 10,000 sq.m.
Transactions conducted after the first half-year
Kungsleden is purchasing a senior high school in Lysekil through Hemsö
■ SEK 180 m at an initial property yield of 6.4 per cent
■ 50 per cent of revenue and costs on Kungsleden
Kungsleden is purchasing a senior high school in Norrköping through
Hemsö
■ SEK 98 m at a property yield of 7.1 per cent
■ 50 per cent of revenue and costs on Kungsleden
Kungsleden is selling two retail properties in Högdalen Municipal Centre
and Linköping
■ SEK 65 m at a property yield of 6.5 per cent
Current market conditions
Kungsleden’s lettings market
Lettings market remains positive
Vacancies confined to few properties
Slight increase in rent levels with existing tenants
Financial market
Increased financial and economic unrest in the surrounding world
Swedish government finances remain sound, domestic demand positive
Transaction market
High supply of properties
Transaction sentiment more hesitant as a result of financial unrest in the
surrounding world
The property portfolio, 2001 – Q2-2011
Kungsleden’s properties—by type
2nd Quarter 2011 in figures
Income Statement
SEK m
2011
Jan-Jun
2010
Jan-Jun
Rental revenues 1,204 1,062
Sales revenues, modular buildings 144 80
Net sales 1,348 1,142
Gross profit 838 752
Trading net 23 14
Sales and administration costs -162 -137
Net financial position -414 -364
Unrealised value changes 405 –98
Profit before tax 690 167
Tax –181 -30
Profit after tax for the period 509 137
Income Statement
SEK m
2011
Jan-Jun
2010
Jan-Jun
Rental revenues 1,204 1,062
Sales revenues, modular buildings 144 80
Net sales 1,348 1,142
Gross profit 838 752
Trading net 23 14
Sales and administration costs –162 –137
Net financial position -414 -364
Unrealised value changes 405 –98
Profit before tax 690 167
Tax –181 -30
Profit after tax for the period 509 137
Rental revenues
increase by 13 per cent.
Growth mainly
explained by the
purchase of NR Nordic
& Russia Properties
Income Statement
SEK m
2011
Jan-Jun
2010
Jan-Jun
Rental revenues 1,204 1,062
Sales revenues, modular buildings 144 80
Net sales 1,348 1,142
Gross profit 838 752
Trading net 23 14
Sales and administration costs –162 –137
Net financial position -414 -364
Unrealised value changes 405 –98
Profit before tax 690 167
Tax –181 -30
Profit after tax for the period 509 137
Sales revenues up
by 80 per cent thanks to
increased demand
for modules
Income Statement
SEK m
2011
Jan-Jun
2010
Jan-Jun
Rental revenues 1,204 1,062
Sales revenues, modular buildings 144 80
Net sales 1,348 1,142
Gross profit 838 752
Trading net 23 14
Sales and administration costs –162 –137
Net financial position -414 -364
Unrealised value changes 405 –98
Profit before tax 690 167
Tax –181 -30
Profit after tax for the period 509 137
Gross profit rises 11
per cent
Income Statement
SEK m
2011
Jan-Jun
2010
Jan-Jun
Rental revenues 1,204 1,062
Sales revenues, modular buildings 144 80
Net sales 1,348 1,142
Gross profit 838 752
Trading net 23 14
Sales and administration costs –162 –137
Net financial position -414 -364
Unrealised value changes 405 –98
Profit before tax 690 167
Tax –181 -30
Profit after tax for the period 509 137
Trading net increases to
SEK 23 m. Few sales and
value changes of SEK 5
m realised through sales
Income Statement
SEK m
2011
Jan-Jun
2010
Jan-Jun
Rental revenues 1,204 1,062
Sales revenues, modular buildings 144 80
Net sales 1,348 1,142
Gross profit 838 752
Trading net 23 14
Sales and administration costs –162 –137
Net financial position -414 -364
Unrealised value changes 405 –98
Profit before tax 690 167
Tax –181 -30
Profit after tax for the period 509 137
Increased admin costs due to
Hemsö now independent
Larger property portfolio
Higher transaction activity
Relocation of Kungsleden’s
and Hemsö’s offices
Income Statement
SEK m
2011
Jan-Jun
2010
Jan-Jun
Rental revenues 1,204 1,062
Sales revenues, modular buildings 144 80
Net sales 1,348 1,142
Gross profit 838 752
Trading net 23 14
Sales and administration costs –162 –137
Net financial position -414 -364
Unrealised value changes 405 –98
Profit before tax 690 167
Tax –181 -30
Profit after tax for the period 509 137
Higher loan volume
after the year’s
acquisitions
Recently arranged bond
loans have higher
interest margin than
bank loans
Income Statement
SEK m
2011
Jan-Jun
2010
Jan-Jun
Rental revenues 1,204 1,062
Sales revenues, modular buildings 144 80
Net sales 1,348 1,142
Gross profit 838 752
Trading net 23 14
Sales and administration costs –162 –137
Net financial position -414 -364
Unrealised value changes 405 –98
Profit before tax 690 167
Tax –181 -30
Profit after tax for the period 509 137
Positive value change
corresponding to 1 per
cent of book value
Positive value change
on financial instruments
due to higher long
yields
Income Statement
SEK m
2011
Jan-Jun
2010
Jan-Jun
Rental revenues 1,204 1,062
Sales revenues, modular buildings 144 80
Net sales 1,348 1,142
Gross profit 838 752
Trading net 23 14
Sales and administration costs –162 –137
Net financial position -414 -364
Unrealised value changes 405 –98
Profit before tax 690 167
Tax –181 -30
Profit after tax for the period 509 137
Equivalent to 26.3 per
cent of profit before tax
Income Statement
SEK m
2011
Jan-Jun
2010
Jan-Jun
Rental revenues 1 204 1 062
Sales revenues, modular buildings 144 80
Net sales 1 348 1 142
Gross profit 838 752
Trading net 23 14
Sales and administration costs –162 –137
Net financial position -414 -364
Unrealised value changes 405 –98
Profit before tax 690 167
Tax –181 -30
Profit after tax for the period 509 137
Unrealised value
changes on properties
and financial
instruments make a
positive contribution
Statement of Financial Position
SEK m 2011 2010
Assets 30 Jun 31 Dec
Goodwill 201 201
Properties 26,123 21,501
Receivables, etc. 1,435 2,045
Cash and cash equivalents 911 747
Total assets 28,670 24,494
Equity and liabilities
Equity 7,604 7,357
Interest-bearing liabilities 17,644 13,949
Non-interest-bearing liabilities 3,422 3,188
Total equity and liabilities 28,670 24,494
Maturity structure, interest fixings
As of 30 June 2011
Loan, SEK
m
Interest
derivatives,
SEK m
Ave.
interest, %
Average fixed interest
term, years
2011 17,666 95 3.8
2012 700 3.7
2013 2,800 4.1
2014 2,500 4.0
2015 3,000 4.2
2016 1,000 4.3
2017 300 4.5
2018 3,550 4.3
Total derivatives 13,945 3.4
Total loans 17,666 5.0
Market value of loans and
derivatives 578
Total 18,244
Maturity structure, credits (including un-utilised
credit facilities)
As of 30 June 2011
Utilised
credits, SEK
m
Un-utilised
credits, SEK m
Total
credits, SEK m
2011 1,297 310 1,607
2012 8,420 3,000 11,420
2013 2,745 - 2,745
2014 1,640 - 1,640
2015 999 - 999
2016 2,065 - 2,065
2017 - - -
2018 324 - 324
2019 176 176
Total 17,666 3,310 20,976
Average conversion term, years 2.1 1.9
Equity ratio
30 Jun 11
27%
31 Dec 10
30%
30 Jun 10
27%
Mortgage ratio 68% 65% 65%
Underlying profits, 2001 – Q2 2011
The share 2010 to mid-August 2011
Total yield 2002 to mid-August 2011
Ten largest shareholders (percent of votes & capital)
■ Länsförsäkringar fonder 3.1
■ Nordea fonder 3.0
■ SHB fonder 2.5
■ Pensioenfonds PGGM (NL) 2.4
■ Olle Florén and companies 2.3
■ Norwegian Government 1.7
■ AP4 1.6
■ Black Rock fonder (USA) 1.4
■ Swedbank Robur Fonder 1.2
■ SEB Fonder 1.2
20.4 Source: SIS Ägarservice 30 June 2011
Outlook for 2011
■ Focus on customer care, cash flow and enhancing the portfolio
■ Working with a broad base of alternative funding sources
■ Stable government finances but somewhat increased risk of subdued
growth
■ High activity level—financial unrest creating uncertainty but also opening
up attractive transaction opportunities
■ Business Development Manager for commercial properties, Ylva Sarby
Westman, will join Kungsleden’s group management
■ Limited vacancies and stable underlying cash flows
■ Estimate of profit for calculating dividends of SEK 650 m reiterated
Any questions?