Interim Report January 1 – September 30, 2016
Tuesday, 25 October 2016Student housing develops campuses.
Much is happening in the field of student housing right now. We have broken ground for a student accommodation project that will house 430 KTH students, which we are building under our own auspices. We sold land in Lund for 330 student housing units and in Gothenburg we initiated and kicked off GBG 7000+, a collaborative group with the aim of completing 7,000 student housing units by 2026.
Just in time for the new semester, some 40 students were able to move into the new student apartments at SLU in Alnarp and almost as many moved in to the exciting HSB Living Lab project on the Chalmers campus in Gothenburg. Students who live here will also be living research subjects and knowledge gained from the project will be useful in future student housing plans. In all, we have now contributed to the construction of more than 11,000 student housing units adjacent to our campuses.
Grand opening of Green Innovation Park
In late September, Green Innovation Park – a business park with a focus on the green industry – celebrated its grand opening in Uppsala. We are responsible for this initiative along with the Swedish University of Agricultural Sciences. The goal is to create a neighbourhood for innovation and entrepreneurship where people will want to work, live and grow. This is a good example of how we take full responsibility for campus environments that grow and evolve with new functions and operators, contributing to the long-term benefit of these centres of education.
The Interim Report in brief:
JANUARY–SEPTEMBER
• Rental revenue was SEK 4,098 million (4,109).
• Net operating income totalled SEK 2,935 million (2,917), an increase of SEK 18 million, primarily attributable to lower property management costs.
• Net changes in property values had an impact on profit of SEK 2,488 million (1,446).
• Net financial income and expense for the period amounted to SEK –657 million (–362). This figure includes changes in the value of financial derivatives totalling SEK –418 million (–103), of which SEK –131 million (22) is unrealised.
• Profit before tax for the period amounted to SEK 4,703 million (3,950) and profit for the period was SEK 3,663 million (3,081). The increase can be attributed to positive changes in property values but reduced by a lower net financial income.
• Investment in redevelopment and new construction during the period totalled SEK 2,044 million (1,893).
• The yield (excluding properties under construction) was 5.9 per cent (6.5) on a rolling 12-month basis. The decline can be explained by an increase in property value while net operating income remained unchanged.
• Return on operating capital was 6.4 per cent (6.8) on a rolling 12-month basis.
• The equity ratio at the end of the period was 40.9 per cent (46.8).
THIRD QUARTER
• Rental revenue was SEK 1,358 million (1,387), a reduction of SEK 29 million mainly attributable to one-off revenue during the third quarter of 2015.
• Net operating income increased somewhat to SEK 1,030 million (1,024).
• Changes in property values totalled SEK 430 million (330), corresponding with 0.6 per cent (0.5) of the value of the properties.
• Net financial income and expense for the reporting period amounted to SEK –236 million (–266). Changes in the value of financial derivative instruments amounted to SEK –314 million (–169).
Interim Report January 1 – September 30, 2016