Akademiska Hus Interim Report 1 January–31 March 2022

The Interim Report in brief:

• Rental revenue was SEK 1,701 million (1,672).
• Net operating income totalled SEK 1,259 million (1,227).
• Profit before changes in value and tax was SEK 1,117 million (1,084).
• Changes in property values amounted to SEK 3,529 million (1,433).
• Net interest income amounted to SEK -93 million (-99) and changes in the value of financial instruments amounted to SEK 657 million (513).
• Profit before tax was SEK 5,303 million (3,030) and profit for the period was SEK 4,211 million (2,580).
• Investments in redevelopment, extensions and new construction totalled SEK 647 million (827).
• Properties worth SEK 0 million (1,585) were sold during the year. The capital gain amounted to SEK 0 million (-7).
• The yield (excluding properties under construction and expansion reserves) was 4.6 per cent (5.1) over the past 12 months.

At the same time that the pandemic has finally released its grip on Swedish society and campuses can once again be filled with undergraduate and graduate students, as well as staff, a geopolitical situation has arisen with extremely troubled waters that must be navigated.

“Russia’s invasion of Ukraine is a humanitarian disaster and it is with great sorrow that I follow the news and see the tremendous suffering that affects the civilian population in Ukraine”, says Caroline Arehult, CEO of Akademiska Hus.

She continues:
“In addition to human tragedies, the war will most likely have long-term economic consequences; it has already affected the price of raw materials, supplies and energy, which can ultimately have an impact on both our construction projects and our operating and maintenance costs. We have now intensified our efforts with our risk analyses in order to be prepared to handle the challenges that can be expected.”

Despite the uncertainty of the security policy situation and rising inflation, there is still high pressure on the market for community properties, with strong demand for good properties. During the period, Akademiska Hus has signed an agreement with the Stockholm School of Economics on the sale of the property known as Studentpalatset. The company also signed an agreement with Skandia Fastigheter on the sale of the property Änggården 34:2 in Gothenburg, better known as “Botan”. As a result of the reduced yield requirements in Stockholm and Gothenburg in particular, Akademiska Hus’ property value continues to rise and is now SEK 116.5 billion, an increase of 3.7 per cent since the turn of the year.

During the period, Akademiska Hus decided to invest approximately SEK 360 million to build 170 apartments with room for 350 undergraduate and graduate students in the Rosendal neighbourhood. The initiative will make Uppsala more attractive as a student town and create campus-based housing adjacent to the Ångström Laboratory and the Biomedical Centre (BMC) at Uppsala University.

• Finance