Economy · Torsdag 28 april, 2022

Akademiska Hus Interim Report 1 January – 31 March 2022: Large value changes produce increased result

Akademiska Hus increased its operating surplus compared with the previous year, and profit before changes in value and tax has improved. Lowered yield requirements in the community service property segment mean that the company increases its estimated property value to SEK 116.5 billion.

Summary of the Interim Report:

Rental income amounted to SEK 1,701 million (1,672).
Net operating income amounted to SEK 1,259 million (1,227).
Profit before changes in value and tax amounted to SEK 1,117 million (1,084).
Changes in value of investment properties amounted to SEK 3,529 million (1,433).
Net interest income amounted to SEK -93 million (-99) and changes in the value of financial instruments amounted to SEK 657 million (513).
Profit before tax amounted to SEK 5,303 million (3,030) and profit for the period was SEK 4,211 million (2,580).
Investments in new buildings, extensions and renovations amounted to SEK 647 million (827).
During the year, properties were sold at a value of SEK 0 million (1,585).
Profit for capital expenditure amounted to SEK 0 million (-7).
The property yield, excluding properties under construction and development reserves, amounted to 4.6 percent (5.1) for the past 12 months.

At the same time as the pandemic has finally released its grip on Swedish society and the campus has once again been able to be filled with students, researchers and staff, a very unsettled geopolitical situation has arisen to navigate.

"Russia's invasion of Ukraine is a humanitarian catastrophe and it is with great sadness that I follow the news and see the enormous suffering that is affecting the civilian population in Ukraine," says Caroline Arehult, CEO of Akademiska Hus.

She continues:
"In addition to human tragedies, the war will certainly also have long-term economic consequences, and it has already had a price effect on raw materials, materials and energy prices, which in the long run can affect both our construction projects and our operating and maintenance costs. We have now intensified our work on our risk analyses in order to be prepared to deal with the challenges that can be expected."

Despite the uncertainty in the security policy situation and rising inflation, there is still high pressure on the market for community service properties with strong demand for good properties. During the period, Akademiska Hus signed an agreement for the sale of the so-called Student Palace to the Stockholm School of Economics. The company has also signed an agreement with Skandia Fastigheter for the sale of the property Änggården 34:2 in Gothenburg, better known as Botan. The reduction in the yield requirements, primarily in Stockholm and Gothenburg, means that Akademiska Hus' property value continues to rise and now amounts to SEK 116.5 billion, which is an increase of 3.7 percent since the beginning of the year.

During the period, Akademiska Hus has decided to invest approximately SEK 360 million in building 170 apartments for 350 students and researchers in the Rosendal district. The initiative strengthens Uppsala's attractiveness as a student city and creates housing close to campus adjacent to the Ångström Laboratory and the Biomedical Centre (BMC) at Uppsala University.