News

Akademiska Hus Interim Report 1 January – 30 September 2018

Friday, 26 October 2018

Akademiska Hus’ net operating income for the period continues to increase compared with the previous year. Profit before tax declined because of lower changes in the value of property holdings. Strategic collaborative projects were initiated to create attractive campuses and to strengthen the Company’s customer delivery.

Interim Report in brief 

JANUARY – SEPTEMBER

• Rental revenue was SEK 4,448 million (4,190).
• Net operating income totalled SEK 3,119 million (2,993), an increase of SEK 126 million attributable to completion of new buildings.
• Changes in property values with an impact on profit totalled SEK 799 million (3,584), corresponding with 1.0 per cent (4.6) of the value of the properties.
• The total financing cost was SEK –564 million (–303), including a total of SEK –175 million (–159) in net interest income.
• Profit before tax for the period amounted to SEK 3,300 million (6,228) and profit for the period was SEK 3,297 million (4,783). The decrease mainly relates to a lower increase in the value of the properties.
• Investment in redevelopment and new construction during the period totalled SEK 2,080 million (2,154).
• The yield, excluding properties under construction, was 5.3 per cent (5.4) on a rolling 12-month basis.

THIRD QUARTER

• Rental revenue was SEK 1,462 million (1,408).
• Net operating income was SEK 1,012 million (1,031), a reduction of SEK 19 million.
• Changes in property values had an impact on profit of SEK 252 million (1,667).
• Net interest income dropped by SEK 7 million to SEK –63 million.
• Profit before tax was SEK 1,224 million (2,681).

During the third quarter of the year Akademiska Hus, along with Stockholm University, broke ground for Accelerator. A former lab environment in underground premises will be transformed into an arena for art, science and social issues where students, researchers and other interested parties will be able to meet. Akademiska Hus is investing a total of SEK 91 million in the approximately 2,500 square-metre renovation and expansion project. Accelerator is expected to open in the fall of 2019.

During the period Akademiska Hus invested SEK 193 million to build housing for 132 undergraduate and graduate students on the Ultuna Campus. The initiative strengthens the efforts of the Swedish University of Agricultural Sciences (SLU) to achieve its goal of sharply expanding the number of students enrolled, where access to student housing plays a major role.

In September Akademiska Hus signed an agreement with the Royal Institute of Technology (KTH) to further strengthen their collaboration in education, research and innovation, as well as to work together to equip themselves for future challenges. The collaboration will address issues related to property and sustainability, and explore the potential for using buildings and campus environments as test beds to an even greater degree.

“The work is based on the joint campus plan that KTH and Akademiska Hus formulated and will help the parties to achieve their sustainability goals, as well as the UN’s global sustainable development goals. For us it is one of many examples of how we continue to deepen collaboration with our customers to strengthen the development of our business and our deliverables,” says Kerstin Lindberg Göransson, President, Akademiska Hus.

In September the National Police Academy also celebrated the grand opening of its new facilities on the Flemingsberg Campus outside Stockholm. The campus is now the eighth largest in Sweden, with a clear vision that it is being built specifically for collaboration, sustainable behaviour and an environment that will stimulate the exchange of knowledge between various branches of academia, the business community and society.

During the period the new Humanisten building at the University of Gothenburg was environmentally certified in compliance with the ‘Miljöbyggnad’ Gold standard. An array of measures and solutions serve as the foundation for the gold standard certification.The development of the new Humanisten building can be viewed as a first step in the effort to make the campus south of Götaplatsen a unique and creative meeting place for art, culture and the humanities in Gothenburg.

• Finance