Akademiska Hus Interim Report 1 January–30 September 2020

The Interim Report in brief:  

• Rental revenue was SEK 4,677 million (4,584). 
• Net operating income totalled SEK 3,477 million (3,260). 
• Profit before changes in value and tax was SEK 3,053 million (2,850). 
• Changes in property values totalled SEK 1,588 million (2,547), corresponding with a 1.7 per cent (3.0) increase in the value of the properties. 
• Total financing cost was SEK -543 million (-935), of which SEK -254 million (-659) relates to changes in the value of financial instruments. 
• Profit before tax was SEK 4,388 million (4,737) and profit for the period was SEK 3,474 million (3,753). 
• Investments in redevelopment, extensions and new construction totalled SEK 2,241 million (2,360). 
• The yield (excluding properties under construction and expansion reserves) was 5.1 per cent (5.0) over the past 12 months. 

After the shutdown of all campus-based education during the spring term, the centres of education have now essentially reopened. However, distance education is still offered and most centres of education have prioritised campus-based learning for first year students and education in smaller groups in order to ensure safe working places. For Akademiska Hus, this means collaborating on with the centres of education to utilise the premises in other ways than before and to use outdoor environments to a greater extent for both teaching and meetings.  

“Many of our customers describe the great significance of physical meetings for education and research, but note that of course, the big leap to digitalisation of learning environments will lead to major changes. It is too early to say how increased distance learning will affect the need for premises in the long term and what demands will be placed on the campus of the future, but we are carefully monitoring developments and future trends, and are maintaining close dialogue with the centres of education regarding these matters,” says Kerstin Lindberg Göransson, CEO of Akademiska Hus. 

Akademiska Hus continues to have good liquidity despite the COVID-19 pandemic and interest in green investments continues to be strong. As part of its financial sustainability efforts, Akademiska Hus has issued its second green bond of SEK 1,500 million. The proceeds will be used in accordance with Akademiska Hus’ green framework, which has been given the highest possible rating – dark green – by the independent Centre for International Climate and Environmental Research (CICERO).  

In early September, the grand opening of the first phase of Nya Ångström was celebrated at Uppsala University. The total expansion of 30,000 square metres will be completed in 2022. That same month, Akademiska Hus celebrated the grand opening of 91 new apartments at Ultuna, outside Uppsala, which will provide 132 undergraduate and graduate students with long-awaited campus-based housing. Akademiska Hus has invested about SEK 220 million in the new apartments, which the company has built under its own management. 

During the quarter Akademiska Hus signed a contract to acquire the property Alba Nova in Stockholm from the National Property Board of Sweden. The purchase price is expected to be about SEK 2 billion. Through the purchase, Akademiska Hus can assume overall responsibility to an even greater extent for the development of the Albano Campus, the brand new campus that is growing into a modern and competitive knowledge environment.  

• Finance