Wallenstam

Wallenstam
INTERIM REPORT
1 January – 30 June 2009
• R
ental income for the period increased to SEK 674M (623), of which SEK 339M (313)
related to the second quarter.
• T
he property result for the period increased to SEK 175M (132), an increase of 33 per
cent.
• P
rofit for the period after tax amounted to SEK 100M (198), of which SEK 68 M (101)
related to the second quarter. Earnings per share for the period amounted to SEK 2
(3) and to SEK 1 (2) for the second quarter.
• C
hange in the value of buildings held for investment purposes amounted to SEK 1M
(127) and for derivative instruments to SEK -17M (4).
• I nvestment in properties amounted to SEK 848M (970), of which SEK 501M were
acquisitions. Wind-power investments amounted to SEK 92M (278).
• The net asset value per share amounted to SEK 177 (176).
Managing Director, Hans Wallenstam comments:
”The operation developed positively with a good rental trend. We have a strong balance
sheet and profitable management which provides us with good prerequisites to continue
to build renting rights. Our strategy, which is to concentrate on attractive properties in
the big-city regions in Sweden, contributes to stable property values. From our experience of the property crisis during the 1990s, we know that the location of the properties
is a crucial factor for their value. Our commercial holding is concentrated on the central
parts of Gothenburg and has an average yield of seven per cent which is reassuring in the
current economic situation.”
CONTENTS
Interim Report 1 January-30 June 2009
3
Consolidated income statement in summary
9
Consolidated segments and balance sheet in summary 10
Consolidated cash flow statement in summary
11
Parent company income statement and balance sheet 12
Property holding
13
The Wallenstam share
15
Key figures
16
This is Wallenstam
17
This Interim Report has been prepared in accordance with IAS 34. The parent company’s reporting
principles follow the Annual Accounts Act, RFR1:2 and RFR 2:2. Wallenstam, as a principle, reports
acquisitions and sales on the day of taking possession. The reporting principles are unchanged
compared with the previous year.
The information in this interim report is information such as Wallenstam shall publish in accordance with the securities market legislation and/or the legislation relating to trading with financial
instruments. The information was submitted for publication at 0900 (CET) on 5 August 2009.
This report has not been the subject of examination by the company’s Auditors.
All amounts relate to the entire interim period or position at the period end. Comparisons stated in
brackets relate to the corresponding period in the previous year, except in sections which describe
assets and financing where the comparisons relate to the previous year-end. For definitions, see
Wallenstam’s website: www.wallenstam.se. For information about Wallenstam’s valuation model,
see www.wallenstam.se/fastighetsvardering.
2 WALLENSTAM
INTERIM REPORT
1 January - 30 June 2009
The Managing Director
comments on the period
”As a result of strong demand for renting rights in the bigcity regions, Wallenstam’s letting ratio for dwellings is very
stable and amounted to 100 per cent. The letting ratio for
Wallenstam’s commercial properties in Gothenburg is also
very good and increased to 96 per cent. Rental income developed positively, partly as a result of the year’s rental negotiations and partly as an effect of a larger property holding.
The year’s rental increases for Wallenstam’s dwellings average 3.10 per cent.
”Wallenstam has a sound financial position and a good
cash flow. This enables us to utilise business opportunities
which arise and to continue our aggressive investment in
new construction. We currently have 460 apartments under
construction and together with Stockholm City we have announced a declaration of intent which means that Wallenstam is a prioritised company with regard to land instructions
for new construction of renting rights in Stockholm.
”Our tenants’ interest in transforming their apartments
from renting rights into tenant-owners’ associations remains
strong. During the period, we sold three properties to tenantowners’ associations formed by the tenants, all at prices on a
par with or above valuation.”
OPERATING costs
Cost-efficient management means that Wallenstam, in spite
of increases in charges, has a continued high surplus ratio.
Operating costs for the period amounted to SEK 239M (213)
and the operating surplus to SEK 435M (411).
ADMINISTRATIVE E XPENSES
Management costs and administrative expenses reduced to
SEK 77M (96). The decrease is an effect of Wallenstam’s focus on cost control and work with reducing the administrative expenses. The previous year’s expenses were charged
with SEK 8M for an option scheme to the staff.
Other operating income and expenses
Other operating income and expenses amounted to SEK 1M
(10) net and mainly consist of the sale of participations in
tenant-owner’s associations. Depreciation of properties used
in business operations of SEK 10M (19) was charged to profit.
During the corresponding period in the previous year, an adjustment was made of SEK 10M relating to previous periods.
VALUE CHANGES, PROPERTIES
Value changes in buildings held for investment purposes
amounted to SEK 1M net (127), of which realised changes in
value amounted to SEK 15M. The change in value is primarily
due to the following factors:
Results
Profit after tax amounted to SEK 100M (198). Earnings per
share amounted to SEK 2 (3). The change is, above all, due
to a significantly lower value increase for the properties than
in the previous year and to a change in value of interest derivatives.
Wallenstam’s current operation, which involves the letting and management of dwellings and premises, is doing
well and is developing positively.
RENTAL INCOME
Consolidated rental income for the period increased to SEK
674M (623). Of rental income, SEK 376M (340) consists of
rental income from the Residential business area and SEK
295M (283) of rental income from the Commercial business
area. The increase is mainly an effect of a continued high
letting ratio, higher rental levels and a larger property holding.
Change in yield
Capitalisation of change in operating surplus
Future investment requirement
Realised changes in value Change in value, buildings held
for investment purposes
SEK M
-42
64
-36
15
1
financial income and expenses
Financial income amounted to SEK 17M (9). The increase is
mainly an effect of interest received on financial investment
in securities and exchange rate gains. Financial expenses
amounted to SEK 211M (205). The increase is due to a larger
loan volume and a longer fixed-interest term. On the balance
sheet date, the average interest rate amounted to 4.02 per
cent (4.23).
WALLENSTAM 3
Wallenstam uses interest derivatives in order to achieve the
desired interest maturity structure and electricity derivatives
to handle price risks in electricity trading. The change in
value of the derivatives amounted to SEK -17M (4), of which
realised changes in value represented SEK 2M (3). During the
period, a small proportion of the derivatives were hedging
reported which affected profit by SEK 71M. The change in
value for the period was positive by SEK 52M.
Property holding
GEOGRAPHIC DISTRIBUTION, AREA *
Göteborg
53%
realised profit
Helsingborg
5%
Wallenstam’s realised profit, i.e. profit excluding unrealised changes in value and taxes, amounted to SEK 180M
(158). The realised profit is higher than in the previous
year, mainly as an effect of an increased operating surplus
and lower administrative expenses.
taxes
Wallenstam reports a tax expense of SEK 38M (42). The actual
tax for the 2009 income year has been calculated based on a
corporation tax of 26.3 per cent (28). Thanks to the opportunity to make fiscal deductions and depreciation and to utilise
loss carry-forwards, in principle, no tax payment arises.
SECOND QUARTER 2009
The property management’s operating surplus amounted
to SEK 231M (220). Rental income amounted to SEK 339M
(313). The increase is explained by rental increases, a larger
property holding and a continued high letting ratio. Operating costs amounted to SEK 108M (94), which is mainly an
effect of a larger property holding. Wallenstam’s operating
costs are highest during the first and fourth quarters as the
costs of heating the properties are higher during these parts
of the year. Value changes in buildings held for investment
purposes amounted to SEK 8M net (42) and changes in value
of electricity and interest derivatives to SEK -8M (8).
In connection with Wallenstam’s property acquisition in
Nacka, a block of Heba shares was used as part payment. The
block of shares was bought back during the second quarter.
By buying back the block, Wallenstam took part in the dividend. Thereafter, 1.3 million Heba shares were again sold.
After the sale, Wallenstam owns 10.1 per cent of the total
number of shares (six per cent of the votes).
Wallenstam’s markets
Wallenstam’s property holding is concentrated on the three
fastest expanding regions in Sweden: Gothenburg, Stockholm
and Helsingborg. Wallenstam has a large supply of dwellings,
offices and stores in attractive locations. Of Wallenstam’s total
property value of more than SEK 19 billion, the proportion
of residential properties represents approximately 60 per cent.
The remainder, approximately 40 per cent, consists of commercial properties. The Wallenstam Group owns and manages approximately 1,183,000 square metres distributed on
around 300 properties.
4 WALLENSTAM
Stockholm
42%
LOCATION DISTRIBUTION, AREA *
Immediate
surroundings
57%
Inner city
43%
DISTRIBUTION, TYPE OF PREMISES, RENTAL VALUE
Offices
25%
Stores 11%
Industrial/
Warehousing 4%
Training 5%
Other 6%
Residential
49%
The 10 l arges t premises tenant s
TenantArea, sq m
Göteborgs Kommun
Försäkringskassan
Mölnlycke Health Care AB
Landsarkivet
Göteborgs Universitet
SCA Hygiene Products AB
Törnskogen Utbildning AB
Folkuniversitetet
Ernst & Young AB
Härryda Kommun
14,797
15,896
13,684
11,000
8,865
7,600
6,285
6,270
5,476
5,342
Total
95,215
*T
otal commercial area is approximately 440,000 square
metres.
residential market
The residential market in Wallenstam’s chosen locations is
characterised by strong demand and a low new production
rate for renting rights. Wallenstam’s property holding represents approximately 60 per cent of the Group’s total letable
area. The residential holding is fully-let and only a small
proportion of the apartments will become vacant during the
year.
During the period, the rental negotiations for Wallenstam’s residential properties in Helsingborg and Stockholm
were concluded. The negotiations resulted in increases which
average 2.95 per cent in Stockholm, 4.40 per cent in Helsingborg and 3.10 per cent in Gothenburg.
Demand for tenant-owner’s rights increased slightly
which, among other things, is an effect of the low interest
rate situation. However, location is a decisive factor for pricing. On attractive properties, bidding is again noted.
premises market
Wallenstam’s commercial holding is located in Gothenburg’s
inner city and in attractive business locations. Wallenstam’s
letting ratio for commercial premises amounted to 96 per
cent. For the Gothenburg market, the letting ratio averaged
92.2 per cent for the second quarter of 2009 according to
Jones Lang LaSalle.
For Wallenstam’s office properties, the average rental
level amounted to SEK 1,470 per square metre. During the
year, Wallenstam let an approximately 14,000 square metres
of commercial property in the Gothenburg region, of which
the net letting amounted to approximately 4,000 square
metres. The Wallenstam premises tenants’ ability to pay remains good and Wallenstam noted only a marginal change
in comparison with the same period in the previous year.
The new construction rate for commercial premises in
Gothenburg is low. Against the background of the current
economic situation and recently implemented redundancies,
Wallenstam is of the opinion that demand for commercial
premises will level out and that the trend of rental increases
will abate. However, Wallenstam has a sound and stable customer structure which, in combination with the properties’
attractive locations, gives a low risk profile.
SALES PRICE/VALUATION, SOLD PROPERTIES
SEK M
2 000
21%
10%
1 800
1 600
1 400
16%
1 200
1 000
800
13%
600
400
2%
200
0
2005
2006
2007
Valuation
2008
2009
Sales price
VALUE DISTRIBUTION
TOTAL, SEK 19 489M
Buildings
used for
investment
purposes
95%
Properties
used in
business
operations
3%
Project
properties
2%
VALUE GROWTH OF NEW PRODUCTION
SEK M
700
47%
600
500
property market
The total transaction volume for property deals decreased
during the first half of 2009 according to Jones Lang LaSalle.
However, a clear trend is that largest transactions from a volume viewpoint are carried out in the three big-city regions in
Sweden, which results in an increase in the proportion of the
total transaction volume of the big city regions. Wallenstam
notes an increasing interest from tenants when it comes to
transforming their dwellings into tenant owner flats. Wallenstam is continually negotiating with a number of tenantowners’ associations formed by the tenants.
Wallenstam makes use of market fluctuations and has good
timing in its property transactions. Thanks to a stable situation, there are both opportunities for and interest in carrying
400
300
85%
200
60%
100
0
2005
2006
Acquisition cost
41%
2007
2008
2009*
Valuation
* During 2009, no new production was completed.
WALLENSTAM 5
out acquisitions. During the first two quarters of 2009, three
properties were sold at prices on a par with the valuation at
the year end.
Investments
PROPERTIES
During the period, Wallenstam acquired five properties and
a share in a development property in Älta (Nacka municipality) for SEK 501M. In total, the properties comprise 556
let apartments, completed building rights equivalent to 7,000
square metres gross area and land under planning.
NEW CONSTRUCTION AND REFuRBISHMENT
During the period, Wallenstam invested SEK 848M (970) in
properties, of which SEK 347M (750) relates to new construction and refurbishment. Wallenstam produces mainly
renting rights and currently has more than 460 apartments
under construction. The latest started project is 267 apartments in Kungsholmsporten in Stockholm which will be
completed during the autumn of 2011.
Wind power
During the period, Wallenstam invested SEK 92M (278) in
wind power. The construction of Wallenstam’s five windpower plants at Stentjärnåsen in Jämtland are proceeding
according to plan. The plants are expected to be put into
operation during the autumn of 2009. Wallenstam has so
far decided to invest in wind-power projects which have a
combined capacity of approximately 40 MW, equivalent to
approximately 40 per cent of Wallenstam’s requirement to
become self-sufficient for renewable electricity. Wallenstam’s
criteria for investing in wind power are that the plants shall
generate a yield in excess of seven per cent in year one and
at least 15 per cent per annum on average over the plant’s
economic life.
Financial position
Loans
Loans amounted to SEK 11,459M (10,376) on the balance
sheet date. The total loan portfolio has increased as Wallenstam secured the whole financing of the Kungsholmsporten
project in Stockholm at the beginning of the year. The corresponding amount has been invested in interest-bearing paper
to be used for payment of the contract.
The pledging ratio amounted to 53 per cent (51). Of the total loan portfolio, 65 per cent of the loans have a fixed-interest
term exceeding one year. The loans run without a currency
risk. The average remaining fixed-interest term amounts to
32 months (30).
The available liquidity, including unutilised bank overdraft
facilities, amounted to SEK 1,080M (428) on the balance sheet
date. The liquidity has increased in order to achieve greater
freedom to take action as a consequence of the inertia in the
financial system.
On the balance sheet date, the average interest rate
amounted to 4.02 per cent (4.23).
6 WALLENSTAM
shareholders’equity
On 30 June, shareholders’ equity amounted to SEK 8,046M
(8,028), equivalent to SEK 137 per share (137). The equity ratio amounted to 37 per cent (40). Shareholders’ equity and the
equity ratio were influenced by the total profit for the period
and dividend.
windpower-parks 2009
In operationEffect, mW
Anders A. (Silkomhöjden)
Ann-Marie S. (Tängelsbol)
Birgitta L. (Västergården)
Bengt C. (Gategården, Kvänum)
Dan C. (Rålanda)
Susan H. (Hörby)
Rose-Marie G. (Lyngby)
4.0
1.8
3.6
1.8
0.8
1.4
3.3
Total
16.7
Under constructionEct, mW
Rätans – Digerberget
Stentjärnåsen
Total
10.0
10.0
20.0
Under project planningEffect, mW
Middagsberget
Rålanda, etapp 2
6.0
4.0
Total
10.0
Future projectsEffect, mW
29 wind-power plants
58
The wind-power parks are named after the employees who have
worked longest in the company.
Fixed-rate term
average interest rates
Liability,
SEK M
<3 months
>3 months <= 1 year
>1 year <= 2 years
>2 years <= 3 years
>3 years <= 4 years
>4 years <= 5 years
>5 years <= 6 v
>6 years <= 7 years
>7 years Total
Average interestShare,
rate, %
%
3,600
434
1,676
1,403
1,451
875
420
300
1,300
3.99*
4.71
4.22
4.26
3.93
3.81
3.85
3.73
3.74
31
4
15
12
13
8
4
2
11
11,459
4.02
100
The loan portfolio contains only loans in SEK.
* Loans with interest maturity within three months have an average
interest rate of 2.08 per cent. 3.99 per cent includes the effect of swap
agreements and fixed interest loans which mature within the threemonth period.
deferred tax
A net liability is reported in the group of SEK 1,231M for deferred tax. This liability consists of deferred tax recoverable
of SEK 1,089M and a deferred tax liability of SEK 2,320M.
The deferred tax recoverable refers to the value of loss carryforwards in Group companies. The deferred tax liability relates to differences between reported values and fiscal residual
values on the Group’s properties.
net asset value
The net asset value is estimated at SEK 177 per share (176),
excluding deferred tax. Wallenstam sells properties, both directly and via companies, and the tax burden can, therefore,
vary.
Parent company
The parent company’s operations consist primarily of carrying out Group-wide services. In addition, the parent company
owns a small number of properties. Total sales for the period
amounted to SEK 138M (143), of which rental income represents SEK 35M (34). Profit after tax amounted to SEK 520M
(1,131). Profit for the period includes a dividend of SEK 490M
(1,140) from the subsidiaries. Investments in fixed assets during the period amounted to SEK 29M (24). The parent company’s loans amounted to SEK 5,359M (5,460) on the balance
sheet date. Of other assets, SEK 7,597 (7,283) consisted of
receivables from Group companies.
Opportunities and risks
In order to prepare the accounts in accordance with generally
accepted accounting principles, the Executive Management
must make evaluations and assumptions which affect asset
and liability items and income and expense items respectively in the accounts as well as given information in general. The
factual outcome can differ from these evaluations. Wallenstam’s risks are described on pages 49-51 in the 2008 Annual
Report. No significant changes have arisen thereafter.
Wallenstam has three categories of opportunities and risks:
change in cash flows, change in values and other risks.
cash flow
Wallenstam’s pledging ratio is low and the cash flow strong.
This, in combination with properties in prime locations, good
tenants and a fully-let property holding gives Wallenstam a
stable foundation in its operations. Against the background
of this, the risk for future vacancies is deemed to be low. Residential rental income is comparatively secure and predictable.
A change of one per cent in residential rental income is equivalent to approximately SEK 7M on a full-year basis.
A change of one per cent in the letting ratio in the commercial holding is equivalent to an income change of approximately SEK 6M on a full-year basis. At the year–end,
Wallenstam’s ten largest tenants of premises represented approximately nine per cent of Wallenstam’s total rental value.
Of Wallenstam’s rental income, approximately half comes
from the commercial properties. During the period, several
significant commercial lease contracts were extended. With
a fully-let residential holding, a high letting ratio and good
contract structure in the commercial holding as well as attractive properties in prime locations, Wallenstam sees no
risk in the cash flow.
value of the properties
Wallenstam reports the estimated market value of the properties in the balance sheet and value changes in the income
statement. The value of the properties is dependent on market terms and these change over time. On the balance sheet
date, the estimated market value amounted to SEK 19,489M.
A price change of +/-10 per cent is equivalent to a change in
net asset value of approximately SEK 33 per share.
In the current economic situation, the location of the
property is increasingly important for its value. An attractive
property holding reduces the risk of loss of rent and fall in
value. Wallenstam operates in locations where there is a significant shortage of dwellings. Approximately 60 per cent of
the property holding consists of residential properties which
are all located in prime locations in Gothenburg, Stockholm
and Helsingborg. Wallenstam’s commercial properties are all
situated in prime locations in Gothenburg. The yield requirements for Wallenstam’s commercial properties average seven
per cent. The structure of the property holding and the properties’ attractive locations mean that, in total, Wallenstam’s
risk profile is low.
For further information about Wallenstam’s valuation
model, see www.wallenstam.se/fastighetsvardering.
financing
The interest expense is Wallenstam’s individually largest cost
item and the conditions in the interest market can change
rapidly. The repo interest rate has been lowered on several
occasions during 2009 and variable interest rates levels are
currently at a record low. The lenders’ pricing (margins) has
risen during the year. Access to liquidity remains limited,
mainly for longer durations.
Wallenstam’s financial policy regulates the ratio between
the proportion of fixed-term and variable-term loans in the
loan portfolio. In order to minimise the refinancing risk, the
financial policy also regulates the distribution between the
number of lenders and the maturity structure of the loan
portfolio. Wallenstam does not work with covenant agreements but has traditional loans with security in properties.
Wallenstam is secure both with regard to refinancing and
price.
The fixed-interest term is comparatively long and has increased further during the year. Wallenstam has elected to
work mainly with interest derivatives, which is a flexible and
cost-efficient means of extending loans with a short fixedinterest term.
In order to minimise the currency exposure, loans in foreign currency may only be raised on condition that they are
hedged on the borrowing date to ensure that the currency
risk is minimised. Wallenstam currently has no loans in foreign currency.
WALLENSTAM 7
Purchases of wind-power plants are made in foreign currency
(EUR). Wallenstam works with hedging of purchases in order
to eliminate exchange risks and to secure the calculated rate.
TA x matter
In December 2008, the National Tax Board announced that
companies within the Wallenstam Group will be upvalued
relating to the fiscal result of a number of sales of shares and
participations. The total upvaluing amounts to SEK 675M.
The decisions have resulted in a total tax demand of SEK
189M. The audit covers the period up to and including the
2007 year of assessment. Wallenstam has strong reasons to
contest the National Tax Board’s decision which has been
appealed. The company has also been granted a respite with
the payment. Wallenstam is of the firm opinion that the sales
have been reported and declared in accordance with the
current rules and regulations and, therefore, no provision is
made in Wallenstam’s balance sheet. Wallenstam’s opinion
is shared by external lawyers who have analysed the sales
and the National Tax Board’s argumentation. Wallenstam
expects the matter to be examined within a couple of years
at the earliest.
Wallenstam’s chosen strategy, which is to have an attractive
property holding concentrated on Stockholm, Gothenburg
and Helsingborg, is a secure platform – it provides a stable
foundation for future growth.
Signing of the report
The Board of Directors and the Managing Director assure
that the six-month report gives a true and fair review of the
parent company’s and the Group’s operations, position and results, and describes the significant risks and uncertainty factors
which the parent company and the companies included in the
Group are facing.
Gothenburg, 5 August 2009
Christer Villard
Chairman
The Wallenstam share
Wallenstam’s B share is quoted on the Mid-Cap list on the
OMX Nordic Exchange.
During the first half of 2009, the OMXS Index of the Stockholm Exchange (SAX) rose by 19.85 per cent and the Carnegie Property index fell by 6.20 per cent. Wallenstam’s share
has risen by 17.77 per cent since the year end. At the period
end, the Wallenstam share price was SEK 79.50 (67.50). On
30 June, Wallenstam’s market value amounted to SEK 4,691M
(3,983). The net asset value per share is estimated at SEK 177
(176). Equity per share is estimated at SEK 137 (137).
Wallenstam has a mandate from the Annual Meeting of
shareholders to buy back shares. During 2009, no shares have
been bought back as a result of the turbulent financial market.
Since Wallenstam started to buy back shares in August 2000,
Wallenstam has bought back shares equivalent to approximately 35 per cent of the original number of shares.
The future
Wallenstam’s Board of Directors has adopted a business plan
which will apply until 2012 and Wallenstam’s target, which
is that the net asset value per share shall exceed SEK 300 in
2012, remains.
Wallenstam is making plans for an ambitious new production programme of dwellings and especially renting rights. In
recent years, the value growth in Wallenstam’s new constructions has exceeded 50 per cent on average. This has been possible thanks to an efficient building process and well-chosen
locations. Wallenstam continues to develop its residential areas with a focus on sustainability. In addition, the company is
making plans for an extensive investment volume of renewable energy.
8 WALLENSTAM
Anders Berntsson
Board Member
Erik Åsbrink
Board Member
Marianne Lervik-Nivert
Vice-Chairman
Ulrica Messing
Board Member
Hans Wallenstam
Managing Director
consolidated income statement in summary
SEK M
2009
Jan–June
Rental income
Operating costs
Management costs and administrative expenses Other operating income and operating expenses
Depreciation of properties
used in business operations
Change In value of properties
held for investment purposes 673.5
-238.9 -77.2
1.3
2008
2009
2008
Jan–JuneApril-JuneApril-June
623.2
-212.5 -95.7
9.7
2008/2009
July-June
2008 Jan-Dec
338.9
-107.8
-39.2
1.6
313.1
-93.6
-53.9
2.4
1,300.6
-466.5
-162.3
3.6
1,250.3
-440.1
-180.8
12.1
-28.6
-9.7 -19.1
-4.8
-4.8
-19.2
1.3 127.0 7.5
42.2
-322.4
-196.7
Operating profit
350.3 432.6
196.2
205.4
333.8
416.1
Financial income Financial expenses Change In value of derivative instruments 16.5 -211.4
-17.1 8.5
-205.3
3.7 12.3
-112.0
-7.9
7.2
-104.3
7.7
21.7
-435.0
-98.3
13.7
-428.9
-77.5
Profit before taxes (Note 1)
138.3 239.5
88.6
116.0
-177.8
-76.6
Tax
-38.0
-41.7 -20.5
-15.5
448.6
444.9
Profit after tax
100.3 197.8 68.1
100.5
270.8
368.3
3.3
1.2
1.7
4.6
6.3
Profit after tax per share, no dilution effects exist
total consolidated profit
SEK M
Profit after tax
Value adjustment, hedging-reported
financial derivative instruments
Value adjustment, shares
Translation difference
1.7
2009
Jan–June
100.3
2008
2009
2008
Jan–JuneAA
197.8
68.1
100.5
110.7
112.6
59.9
-34.2
20.8
0.2
-
-0.4
153.8
66.9
2008/2009
July-June
270.8
2008 Jan-D
368.3
-382.5 -338.7
-25.0
-
41.9
0.2
-52.2
-
Taxes
-33.4
-21.4
-34.9
-36.1
90.8
102.8
Total profit
193.9
252.9
166.2
193.2
21.2
80.2
note 1. distribution of profit
SEK M
2009
Jan–June
Rental income Operating costs
673.5
-238.9 623.2
-212.5 338.9
-107.8
313.1
-93.6
1,300.6
-466.5
1,250.3
-440.1
434.6
410.7
231.1
219.5
834.1
810.2
-66.5
-193.2
-85.5 -193.6
-32.5
-98.7
-47.9
-92.9
-141.6
-407.7
-160.6
-408.2
Property result
174.9
131.6
99.9
78.7
284.8
241.4
Sales result, dwellings
Sales result, properties
Administrative expenses
4.8
14.6
-10.7
5.2
26.6
-10.2
4.2
10.0
-6.7
2.3
15.4
-6.0
13.5
47.1
-20.7
13.9
59.1
-20.2
8.7
21.6
7.5
11.7
39.9
52.8
-3.5
4.5
-2.6
0.1
-9.8
-1.8
180.0
157.7
104.8
90.5
314.9
292.3
Operating surplus
Management costs and administrative expenses Financial income/expense
Transaction result
Other income and expenses
Realised result
2008
2009
2008
Jan–JuneApril-JuneApril-June
2008/2009
July-June
2008 Jan-Dec
Unrealised value changes, buildings held
for investment purposes
Depreciation, buildings used in business operations
Unrealised value changes, derivative instruments
-13.3
-9.7 -18.9 100.4
-19.1 0.5
-2.5
-4.8
-9.0
26.8
-4.8
3.5
-369.6
-19.2
-103.9
-255.9
-28.6
-84.5
Value change result
-41.9
81.8
-16.3
25.5
-492.7
-369.0
Profit before taxes 138.3 239.5
88.6
116.0
-177.8
-76.6
WALLENSTAM 9
Reporting of segment/business area in summary
SEK M
2009
Jan–June
2008
2009
2008
Jan–JuneApril-JuneApril-June
2008/2009
July-June
2008
Jan-Dec
Operating sales
Rental income and other income, Residential Rental income and other income, Commercial Rental income and other income, Other
404.7
295.5
37.9
408.3
283.0
19.2
211.3
146.8
18.6
212.9
141.1
8.5
768.3
575.7
55.8
771.9
563.2
37.1
Sales proceeds, properties, Residential Sales proceeds, properties, Commercial Sales proceeds, properties, Other
Group elimination
236.6
-
-
-15.9
213.3
32.0
0.0
-11.4
187.8
-
-
-8.1
127.6
20.5
0.0
-5.5
509.1
152.5
0.0
-26.6
485.8
184.5
0.0
-22.1
Total Income
958.8
944.4
556.4
505.1
2,034.8
2,020.4
Operating profit
Residential Commercial
Other
392.5
-22.6
-19.6
274.7
168.4
-10.5
147.1
59.8
-10.6
119.3
86.7
-0.6
692.9
-300.1
-59.0
575.1
-109.1
-49.9
Total operating profit 350.3
432.6
196.2
205.4
333.8
416.1
Consolidated balance sheet in summary
SEK M
30.06.2009
30.06.2008
31.12.2008
Assets
Properties held for investment purposes Properties used in business operations
Wind-power plants
Tangible fixed assets
Financial fixed assets
Financial derivative instruments
Current assets
18,835
654
503
52
591 35 820
18,459
656
212
55
409
206
361
18,224
657
416
54
469
4
425
Total assets 21,490 20,358
20,249
Equity and liabilities
Shareholders’ equity Deferred tax
Interest-bearing liabilities
Financial derivative instruments Non-interest-bearing liabilities
8,046
1,231 11,459 309
445 8,239
1,736
9,884
5
494
8,028
1,146
10,376
339
360
Total equity and liabilities 21,490
20,358
20,249
SEK M
30.06.2009
30.06.2008
31.12.2008
Opening equity
8,028
8,257
8,257
Total profit for the period
Dividend
Buy-back of own shares
194
-176
-
253
-177
-93
80
-177
-132
Closing equity 8,046
8,239
8,028
Equity in full is attributable to the shareholders in the parent company.
Change in equity in summary
10 WALLENSTAM
consolidated cash flow statement in summary
SEK M
2009
Jan–June
2008
2009
2008
Jan–JuneApril-JuneApril-June
2008/2009
July-June
2008 Jan-Dec
Operating profit Adjustment for items not affecting the cash flow Received interest
Paid interest
Paid tax
350
69
14
-212
-
433
-83
11
-193
-
196
9
13
-105
-
205
-62
11
-118
-
334
397
26
-427
0
416
246
24
-408
0
Cash flow before change in working capital 221
168
113
36
329
277
42
-114
-29
-97
84
-72
263
55
84
-61
413
205
Investments/Sales
Investment in properties/tangible fixed assets
Investment in wind-power plants
Sale of properties/tangible fixed assets
Investment in/ sale of financial fixed assets
-851
-92
248
-107
-362
-73
249
51
-207
-31
190
-222
-173
-59
153
38
-1,467
-297
668
-174
-978
-278
669
-16
Cash flow from investment operations -801
-135
-270
-41
-1,270
-603
Financing
Raised long-term liabilities Amortisation of long-term liabilities
Paid dividend
Buy-back of own shares Change in long-term receivables
1,107
-9 -176
-
-
490
-73
-177
-93
11
317
-6
-176
-
-
296
-27
-177
-20
20
2,278
-659
-176
-39
-6
1,661
-723
-177
-132
5
Cash flow from financial operations 923
157
136
92
1,399
634
Change in liquid funds
385
76
-50
-10
544
235
Cash, bank at the start of the period Change for the period
Cash, bank at the end of the period Unutilised bank overdraft facility
at the end of the period Unappropriated liquidity
295
385
680
60
76
135
730
-50
680
146
-10
135
135
544
680
60
235
295
400
1,080
133
268
400
1,080
133
268
400
1,080
133
428
Change in working capital Cash flow from current operations WALLENSTAM 11
parent company income statement
SEK M
2009 Jan–June
2008
Jan–June
Income
Expenses
Financial Income/expense 137.5
-119.4
515.0
142.9
-131.7
1,120.4
300.9
-267.6
1,150.4
Profit before taxes
533.1
1,131.6
1,183.7
-13.1
-0.1
199.1
520.0
1,131.4
1,382.8
Tax
Profit after tax 2008
Jan-Dec
parent company balance sheet
SEK M
30.06.2009
Properties Participations in Group companies Other assets
Cash and bank
Total assets
Shareholders’ equity
Interest-bearing liabilities
Interest-bearing liabilities to group companies
Other liabilities
Total equity and liabilities 12 WALLENSTAM
30.06.2008
31.12.2008
812
2,454
8,098
129
777
2,529
7,359
81 788
2,534
7,607
246
11,493
10,746
11,175
3,348
5,359
2,677
109
2,842
5,248
2,576
80
3,004
5,460
2,620
91
11,493
10,746
11,175
property holding
property holding structure on 30.06.2009 Industrial/
Letable area, sq m
Residential OfficesStores Warehousing T Other Total
Stockholm Gothenburg Helsingborg 437,991
17,032
183,413 215,680
52,700 3,605
11,066
57,772
4,800 7,938
79,075
1,481 5,801
32,889
95
12,710
56,057 2,936 492,536
624,886
6,617
Total
674,104
236,317
73,638
88,494
38,785
71,703
1,183,039
57 %
20 %
6 %
8 %
3 % 6 %
42 %
53 %
5 %
properties under production
New production In progress, building start 2009
Property designationSq mNo/apartments
Gothenburg
Högsbogatan
6,700
100
Stockholm
Henriksdalskajen
Kungsholmsporten
6,600
18,900
96
267
Total
32,200
463
yield requirement
Yield
Type of propertyLocalityrequirement, %
Residential Gothenburg ResidentialStockholm ResidentialHelsingborg Commercial properties
3.5-6.5
3.5-6.0
3.5-6.5
5.25-10.0
Average yield requirement, commercial holding 7.0
WALLENSTAM 13
property sales during 2009
Year of con- struction/Year Property designation
Address of refurbishment Gothenburg
Olskroken 11:27 Svangatan 1-3,
Övre Olskroksgatan 24-30
1943/1987
Stockholm
Oljan 27 Sågargatan 17
Pennteckningen 3
Gullmarsvägen 12
1929
1946
Industrial/
Residential Offices Stores Ware-Training Other Total
sq m sq m sq m housing sq m sq m sq m sq m
4,276
Total
202
253
4,823
1,356
2,884
56
1,356
2,940
8,516
9,119
202
50
106
42
42
253
property acquisitions during 2009
Year of con- struction/Year Property designation
Address of refurbishment Helsingborg
Vildvinet 1
Tågagatan 47
1885/1950
Industrial/
Residential Offices Stores Ware-Training Other Total
sq m sq m sq m housing sq m sq m sq m sq m
224
224
Stockholm
Älta 19:1
Oxelvägen 42
1968 2,269 1,277 1,448 4,994
1965
Älta 24:2
Oxelvägen 5-35
24,800
231
551 25,582
Älta 24:3
Oxelvägen 1
1971 1,007 1,007
Älta 25:1
Oxelvägen 26-40
1966
12,598
96
33
518 13,245
Älta 27:3
Ältavägen 202
1993
4,700
337
392
275 5,704
Total
42,322
change in property holding
Book value, SEK MSq m
Property holding on 1January 2009 +Acquisitions
+Constructions
-Sales
- Depreciation
+Unrealised change in value, net
18,881
501
347
-217
-10
-13
1,141,402
50,756
Property holding on 30 June 2009
19,489
1,183,039
14 WALLENSTAM
-9,119
2,933
1,701 3,799 50,756
The Wallenstam share
PRICE DEVELOPMENT
MARKET VALUE - NET ASSET VALUE PER SHARE
2005-2009
SEK
B share
OMX Stockholm_PI
200
Carnegie Real Estate Index
180
180
160
160
160
140
140
120
120
100
100
80
60
80
40
60
20
© NASDAQ
OMX
40
0
2005
2005
2006
2007
2008
2006
2007
2008
2009
Net asset value per share
Market value
2009
shareholders on 30.06.2009
A shares B shares Capital, % Votes, %
Hans Wallenstam with companies and family 5,750,000 Family Agneta Wallenstam
Family Anders Berntsson
Family Henrik Wiman Estate of Eskil Johannesson Bengt Norman with companies
AMF Pension Family U Wallenstam Livförsäkringsaktiebolaget Skandia
Länsförsäkringar fondförvaltning
Other owners 6,770,000
4,770,000
3,434,475
2,314,500
2,227,139
2,080,000
1,800,000
1,547,190
1,350,663
1,178,062
25,325,623
Total
5,750,000
Bought-back own shares
Registered shares
5,750,000 52,797,652
452,348
0.78 53,250,000
Total registered shares 59 000 000
Total outstanding shares 58 547 652
21.22
8.08
5.82 3.92
3.77
3.53
3.05
2.62
2.29
2.00
42.92
100.00
58.03
4.31
3.10
2.09
2.01
1.88
1.63
1.40
1.22
1.06
22.86
0.41
100.00
The share of institutional ownership amounts to approximately 37 per cent of the holding and to approximately 26 per cent of the
votes. Foreign ownership amounts to approximately five per cent of the holding and to approximately three per cent of the votes.
Source: Euroclear Sweden AB
WALLENSTAM 15
key figures
2009 30 June 2008 30 June
2007
30 June
2006
30 June
2005
30 June
2008
31 Dec
674
435
65
100
3
1
623
411
66
198
10
6
622
407
66
431
26
12
627
378
60
475
30
14
606
378
62
417
31
15
1,250
810
65
368
5
2
19,489
4
2
19,115
4
6
18,701
4
12
18,104
5
14
15,997 5
17
18,881
4
3
53
1.9
49
1.7
49
2.6
54
2.2
59
1.7
51
1.6
4.02
32
4.42
25
4.36
25
4.02
26
3.98
29
4.23
30
Equity ratio, %
Shareholders’ equity, SEK M
Market value, SEK M
37
8,046
4,691
41 8,239
6,479
41
7,968
10,240
34
6,218
6,452
29
4,753
6,728
40
8,028
3,983
Number of square metres, thousand
Letting ratio - area, %
Number of employees
1,183
98
158
1,148
98
160
1,159
98
151
1,285
97
125
1,336
97
107
1,141
98
159
1.7
17.2
137
177
79.50
58,548
58,621
3.3
8.1
140
184
104.50
58,919
59,155
7.0 7.4 6.1
5.1
3.8
4.7
130
99
70
170
129
89
160.00
98.50
97.50
61,455 62,886 67,685
61,851 63,719 68,022
6.3
10.8
137
176
67.50
58,548
58,919
Rental income, SEK M
Operating surplus, SEK M
Surplus ratio, %
Profit after tax, SEK M
Return on equity, %
Return on total capital, %
Value of the properties, SEK M
Yield of the properties, %
Total return on the properties, %
Pledging ratio, %*
Interest coverage ratio
Average interest rate on the
balance sheet date, %
Average fixed-Interest term, months
Data per share
Profit after tax
P/E ratio
Shareholders’ equity Net asset value
Market value
Number of shares at the period end, thousand
Average number of shares, thousand
The profit is based on the average number of outstanding shares. Other key figures are based on number of shares at the
period end.
* Interest-bearing liabilities in relation to balance sheet total.
16 WALLENSTAM
This is Wallenstam
Wallenstam was founded in 1944. Wallenstam builds, develops
and manages properties for sustainable living and enterprise
in the three most expansive regions in Sweden: Stockholm,
Gothenburg, and Helsingborg. The ownership is focused on
residential properties and also on commercial properties in
Gothenburg. Wallenstam owns a total of approximately 300
properties and the customer base consists of around 10,000
households and about 2,000 companies. Approximately 60
per cent of the property value is represented by residential
properties. Wallenstam also has an extensive project portfolio
for new production of dwellings and commercial premises.
Wallenstam has made a significant investment in wind
power with the aim of being wholly self-sufficient for electricity on a monthly basis in 2012. It provides the opportunity to
meet both its own and customers’ requirements with renewable energy.
The Group reports a turnover of approximately SEK 1.3
billion in rentals and has a property value of approximately
SEK 19 billion. Wallenstam’s B shares are quoted on the MidCap list of the OMX Nordic Exchange. The market value
amounts to approximately SEK 5 billion.
Business concept
‘To acquire, build, develop and sell properties in selected
big city regions with long-term sustainability for people and
companies.’
Business process
The basis of Wallenstam’s business operations is sustainable
property management. Wallenstam acquires and builds properties for people and companies based on the needs of customers, society and shareholders. The properties are developed and managed in a sustainable and profitable way which
creates growth in value. The profit is reinvested and develops
the operation further. Through a dividend, the shareholders
receive a share of the profit.
Operation and ORGANISATION
The Wallenstam Group has approximately 160 employees.
The head office is located in Gothenburg. Wallenstam is organised into three operations. There are two property management business areas - Residential and Commercial - and
one development organisation. The development organisation
is responsible for land matters, new production of properties,
refurbishment and the development of Wallenstam’s windpower projects. In addition, Wallenstam has an administrative
organisation which supports the business units.
The activities of the Residential business area are operated
in three regions: Stockholm, Gothenburg and Helsingborg.
Residential manages approximately 10,000 apartments.
The activities of the Commercial business area are carried out in Gothenburg. Commercial manages approximately
2,000 premises which consist of offices, city stores, schools,
industrial premises and warehouses.
Operational targets for 2012
The net asset value per share shall exceed SEK
300.
Wallenstam’s guiding stars:
• The equity ratio shall exceed 25 per cent per annum.
• The letting ratio in the commercial holding shall
exceed 95 per cent annually.
• During the period, 2,500 new apartments shall be
at a yield in excess of seven per cent.
• Wallenstam shall have an energy production from
renewable energy which covers its own and customers’ requirements calculated on kWh monthly
requirement.
• Continued positive development of the operating
result.
VALUE GROWTH
finaNCIal reporting
Interim Report III
Year-End Report 2009 Annual Meeting
RESULT
REQUIREMENT
SUSTAINABLE LIVING, CITY DEVELOPMENT
AND PROFITABLE MANAGEMENT
4 November 2009
16 February 2010
28 April 2010
Complete information about Wallenstam’s operations, financial reporting and news releases is published on Wallenstam’s website.
BUYS AND BUILDS
SELLS
DIVIDEND
WALLENSTAM 17
Wallenstam AB (publ), Corp. ID No. 556072-1523
401 84 Gothenburg, Street address : Kungsportsavenyen 2
Telephone +46 31-20 00 00, Fax +46 31-10 02 00, www.wallenstam.se
18 WALLENSTAM