Akademiska Hus Interim Report 1 January – 30 June 2020Friday, 10 July 2020
Interim Report in brief
- Rental revenue was SEK 3,116 million (3,039).
- Net operating income totalled SEK 2,315 million (2,162).
- Profit before changes in value and tax was SEK 2,054 million (1,915).
- Changes in property values totalled SEK 572 million (1,760), corresponding with a 0.6 per cent (2.1) increase in the value of the properties.
- Total financing cost was SEK -348 million (-518), of which SEK -136 million (-321) relates to changes in the value of financial instruments.
- Profit before tax was SEK 2,490 million (3,355) and profit for the period was SEK 1,971 million (2,657).
- Investments in redevelopment, extensions and new construction totalled SEK 1,557 million (1,662).
- The yield (excluding properties under construction and expansion reserves) was 5.1 per cent (4.9) over the past 12 months.
The Akademiska Hus portfolio largely consists of community properties and 93 per cent of the company’s income comes from publicly funded operations in which colleges and universities are the predominant customer group. As a result of the large proportion of creditworthy tenants, Akademiska Hus coped well with the coronavirus pandemic, compared with many other severely hit industries and companies.
Beginning on 15 June, the Government resolved that colleges and universities may open again for campus-based classes, after having conducted all classes remotely since 18 March.
- Intensive work is now underway in close collaboration with our customers to understand how the pandemic affected the way in which education is conducted, the change in the importance of the campus as a physical location and how our delivery can support the development of future knowledge environments in the long term. “For example, premises may be streamlined, where centres of education need smaller spaces, but also remodelled to meet new needs and new forms of teaching,” says Kerstin Lindberg Göransson, President of Akademiska Hus.
Our project portfolio is still extensive and so far we have been able to successfully handle the challenges in the projects caused by the pandemic. Investment decisions have been taken for a new building at Lund university, Forum Medicum, which will be completed in the summer of 2023. We have also begun to remodel the Retzius Laboratory, which will provide an opportunity for new operations associated with health and medicine to become established in ultramodern premises on the Solna Campus.
During the quarter, the Albano Campus achieved an important milestone in that the very first building, Building 3, is ready for occupancy. As Stockholm University and KTH evolve, modern new facilities are needed for research, education and collaboration. At the Albano Campus, 70,000 square metres of new university facilities and 1,000 housing units for undergraduate and graduate students, as well as parks, stores and restaurants are under construction.