Focus on operational efficiency and organic growth
“The journey towards creating one of Sweden’s largest pure-play residential real estate companies began last year. At the end of the quarter, we completed our restructuring and the Group was formed of properties with a value of SEK 27.5bn. One milestone remains, and that is the broadening of the shareholder base of Sveafastigheter that our owner SBB is planning during 2024. Even though Sveafastigheter is a new company, our organisation has worked with a large proportion of our properties already for a long time. This has given us a solid foundation for developing the business plan we are working according to, with a focus on operational efficiency and organic growth.”, says Erik Hävermark, CEO of Sveafastigheter.
The period January – June 2024
- Rental income increased by 20.3 percent and amounted to SEK 652m (542). For comparable portfolio rental income increased by 8.5 percent.
- Net operating income increased by 24.0 percent and amounted to SEK 392m (317). For comparable portfolio net operating income increased by 11.6 percent.
- Profit from property management amounted to SEK 38m (25).
- Changes in property values amounted to SEK -1,116m (-3,266). During the period,
SEK 210m was invested. - Profit for the period amounted to SEK -1,042m ( -3,206).
Second quarter 2024
- Rental income increased by 20.4 percent and amounted to SEK 340m (282). For comparable portfolio rental income increased by 5.8 percent.
- Net operating income increased by 23.2 percent and amounted to SEK 227m (184). For comparable portfolio net operating income increased by 9.2 percent.
- Profit from property management amounted to SEK 43m (28).
- Changes in property values amounted to SEK -538m (-2,431). During the quarter, SEK 188m was invested.
- Profit/loss for the period amounted to SEK -329m (-2,183).
Significant events during and after the quarter
- Joint ventures and partly owned structures were dissolved and restructuring was completed during the quarter, which entailed that the Sveafastigheter Group was formed solely with wholly owned properties and setting conditions for more effective management and profitable organic growth.
- After the quarter, Sveafastigheter established itself on the bond market through the issue of SEK 1,672m with settlement after the end of the quarter. The bond provides a diversification of capital sources and contributes to potentially lower risk and cost in the future raising of capital.
- During the quarter, an agreement was signed to start two new development projects, in Stockholm and Skellefteå, and after the quarter an additional agreement was signed for a new development project in Nacka, totaling 540 apartments. On completion, the projects are anticipated to add additional rental value of SEK 83m.