Akademiska Hus Interim Report 1 January – 30 June 2016
Friday, 15 July 2016Billion investment in Albano Campus
Akademiska Hus took one of its largest investment decisions to date during the second quarter of the year.The Company is investing SEK 2.9 billion in the first phase of the Albano Campus.The area will become a scientific hub connecting the university capital ¬of Stockholm, forming a sustainable campus with research and education environments for more than 15,000 students and researchers.Approximately 1,000 student housing units and premises for commercial services will also be built here. Planned initial occupancy for both commercial and residential premises is 2020. Albano is a unique construction project in which sustainability in every aspect has played a key role in the planning process. The project was also recently named “Stockholm’s Student Friend 2016” by the Stockholm Federation of Student Unions.
Other important events during the period include the investment of SEK 320 million in the “Laboratory of the Future” for Karolinska Institutet on the Flemingsberg Campus. Akademiska Hus also broke ground for a new Medical Biology Centre (MBC) at Umeå University and commissioned a solar park at the Umeå Marine Sciences Centre. The solar park represents the final piece of the puzzle in an energy-saving project, where the combined measures have now resulted in a reduction of energy consumption at the research centre by an impressive 80 per cent.
“We also installed solar panels on the Ultuna Campus, our largest facility to date, with an estimated production of 170,000 kWh per year. The initiative is part of the strategic initiative to achieve a sustainable campus that Akademiska Hus and the Swedish University of Agricultural Sciences are pursuing together,” says Kerstin Lindberg Göransson, President of Akademiska Hus.
The Supreme Administrative Court has confirmed that Akademiska Hus is considered to be a contracting authority that is covered by the Public Procurement Act (LOU). All company purchases from now on must be procured under LOU as a result of this decision. Akademiska Hus welcomes the decision, which finally provides long-awaited clarity on the issue. The Company continuously works with its purchasing process to ensure high-quality procurement and the transition to the new regulatory framework will therefore go smoothly.
The Interim Report in brief
JANUARY – JUNE
• Rental revenue was SEK 2,740 million (2,722); the increase is primarily attributable to the completion of new buildings.
• Net operating income totalled SEK 1,905 million (1,893 million (1,905), an increase of SEK 12 million, primarily attributable to revenue.
• Net changes in property values had an impact on profit of SEK 2,058 million (1,116).
• Net financial income and expense for the period amounted to SEK –421 million (–96). This figure includes changes in the value of financial derivatives totalling SEK –268 million (66), of which SEK –170 million (123) is unrealised.
• Profit before tax for the period amounted to SEK 3,504 million (2,880) and profit for the period was SEK 2,737 million (2,246). The increase can be attributed to positive changes in property values.
• Investments in redevelopment and new construction during the period totalled SEK 1,237 million (1,284).
• The yield (excluding properties under construction) was 6.0 per cent (6.6) on a rolling 12-month basis. The decline can be explained by an increase in property value while net operating income remained essentially unchanged.
• Return on operating capital was 6.5 per cent (7.0) on a rolling 12-month basis.
• The equity ratio at the end of the period was 39.7 per cent (47.7).
SECOND QUARTER
• Rental revenue was SEK 1,358 million (1,381), a reduction of SEK 23 million primarily attributable to one-off revenue of SEK 38 million during the second quarter of 2015.
• Net operating income decreased by SEK 24 million to SEK 958 million (982) due to a decline in revenue.
• Changes in property values totalled SEK 1,750 million (575), corresponding with 2.6 per cent (0.9) of the value of the properties.
• Net financial income and expense for the reporting period amounted to SEK –175 million (128). Changes in the value of financial derivative instruments amounted to SEK –104 million (197).
Interim report 1, 2016