Year-end report 2018: Completion of new buildings boosts net operating income
Thursday, 14 February 2019Year-end report 2018 in brief:
FULL YEAR
- Rental revenue was SEK 5,928 million (5,582).
- Net operating income totalled SEK 3,938 million (3,829), an increase of SEK 109 million attributable to completion of new buildings.
- Profit before changes in value and tax was SEK 3,592 million (3,574).
- Unrealised changes in property values totalled SEK 2,585 million (4,979), corresponding with 3.0 per cent (6.2) of the value of the properties.
- The total financing cost was SEK -628 million (-430), including a total of SEK -268 million (-188) in net interest income.
- Profit before tax for the year amounted to SEK 5,818 million (8,311) and profit for the year was SEK 5,314 million (6,453). The reduction is mainly attributable to lower changes in property values.
- Investment in redevelopment extensions, and new construction during the period totalled SEK 2,842 million (2,555).
- The yield (excluding properties under construction) was 5.0 per cent (5.4).
- The Board of Directors proposes a dividend of SEK 1,663 million (1,630) to the 2019 Annual General Meeting.
FOURTH QUARTER
- Rental revenue was SEK 1,480 million (1,392).
- Net operating income was SEK 819 million (836), a decline of SEK 17 million.
- Profit before changes in value and tax was SEK 702 million (787).
- Unrealised changes in property values totalled SEK 1,786 million (1,395).
- Net interest income amounted to SEK -93 million (-29).
- Profit before tax was SEK 2,517 million (2,083).
In 2018 Akademiska Hus developed an array of ambitious targets to be able to contribute to a climate-neutral society and recently adopted a vision for a zero carbon footprint. The vision will be achieved through climate-neutral internal operations and property operations by 2025 and climate-neutral project operations by 2045.
Demand for knowledge environments continues to be strong. During the year Akademiska Hus completed Biomedicum, one of the largest research labs in Europe, with room for up to 1,600 researchers and other personnel at Karolinska Institutet in Solna. The construction project – the largest ever undertaken by the company – was completed ahead of schedule and under budget.
Akademiska Hus also began construction on the expansion of the Ångström Laboratory at Uppsala University, an initiative that is expected to cost around SEK 1 billion. The 30,000 square-metre additions will house a creative interdisciplinary research and education environment to meet the demands of the future placed on a leading international university. During the year Akademiska Hus’ efforts to contribute to more student housing around the country were in full swing, including the start of construction on about 200 student housing units in Luleå.
Like the rest of the property industry, Akademiska Hus faces major challenges including digitalisation that affects the entire society, the climate challenge and other global external factors. To deal with these challenges the company formulated a new strategy during the year: “collaboration in the development of future knowledge environments”.
“In 2018 we took major steps regarding our level of ambition in a number of areas. We will strengthen our basic delivery at the same time that we take advantage of the opportunities provided by digitalisation and remain on the cutting edge regarding innovation and development, especially in sustainability. In order to succeed we will cooperate even more with our customers and other players so that we can continue to contribute to the attractiveness of Swedish higher education institutions,” says Kerstin Lindberg Göransson, President of Akademiska Hus.