Summary of the Year-end Report 2021:
- Rental income amounted to SEK 6,568 million (6,264).
- Net operating income amounted to SEK 4,707 million (4,485).
- Profit before changes in value and tax amounted to SEK 4,136 million (3,920).
- Changes in value of investment properties amounted to SEK 12,481 million (3,141).
- Net interest income amounted to SEK -368 million (-381) and changes in the value of financial instruments amounted to SEK 380 million (-192).
- Profit before tax amounted to SEK 16,997 million (6,869) and profit for the period was SEK 13,790 million (5,440).
- Investments in new buildings, extensions and renovations amounted to SEK 2,524 million (2,872).
- During the year, properties were sold at a value of SEK 2,293 m (5).
- Profit from the capital amounted to SEK 29 million (3).
- The property yield, excluding properties under construction and development reserves, amounted to 4.7 percent (5.0) for the past 12 months.
2021 is a year that has been consistently marked by the pandemic. For Akademiska Hus' customers – Sweden's higher education institutions – it has been a challenging time, as a large part of teaching and activities have taken place digitally and remotely, even though the autumn meant a certain return to campus life. The record-breaking pace of digitalisation has led to demands for developed pedagogy, new tools and solutions for hybrid teaching.
"It is difficult to know what effects and insights will be permanent at the moment as the analysis is in full swing, but it will undoubtedly affect the long-term requirements for the design of premises in terms of function and flexibility. Throughout the year, we have had a close and constructive dialogue with our customers to jointly understand how we will develop our offering in the future," says Caroline Arehult, CEO of Akademiska Hus.
The property market has continued to develop at a strong pace during the fourth quarter of the year, with continued lower yield requirements and discount rates, as well as record-high transaction volumes both in the fourth quarter of the year and for the full year. Community service properties are among the segments that have seen the largest reductions, thanks to their low vacancy risk and predictable cash flows. In light of this, Akademiska Hus has adjusted its assumptions regarding yield requirements and imputed interest rates in its valuation. Together with investments in new construction, extensions and renovations as well as other cash flow changes, this means that the company's estimated property value now amounts to just over SEK 112 billion.
During the year, the company continued its investment in digitalization of the property portfolio through, for example, the creation of more digital twins. There have also been a number of construction starts, such as a new building for the School of Business, Economics and Law in Gothenburg. Two major construction projects have been completed, the Ångström Laboratory in Uppsala, which is an investment of SEK 1.1 billion, and the second of three phases of the Albano campus in Stockholm, where Akademiska Hus is investing a total of approximately SEK 3 billion.
Akademiska Hus has adopted a new climate target and a new climate and energy strategy to gear up and concretise its contribution to the transition to a more sustainable society. The new goal means that the company will gradually reduce its climate impact from the entire value chain in order to reach climate neutrality by 2035.
