RNS Number:2381R
Akademiska Hus AB
14 February 2007
Akademiska Hus Year-End Report 2006
AKADEMISKA HUS AB (Publ) Reg. No. 556459-9156
The Board and President of Akademiska Hus AB hereby present the Year-End Report
for 2006.
* Profit before tax for the period amounted to SEK 4,229 million (9,270), of
which the increase in value of the investment properties was SEK 1,874 million
(7,214).
* The profit after tax for the period was SEK 3,038 million (6,654). The profit
after financial items, but excluding the change in value of investment
properties, increased from SEK 2,056 million for 2005 to SEK 2,355 million for
2006. Lower maintenance costs and improved net financial items contributed to
the improvement in profit.
* The assessed fair value of investment properties was SEK 48,454 million
(45,616). The increase is attributable to the following factors:
- A continued general upturn on the Swedish property market during 2006.
- Net investments increased from SEK 469 million in 2005 to SEK 1,804 million
in 2006.
* Rental income totalled SEK 4,544 million (4,481).
* The average term for newly signed leases is ten years and at the year-end the
average remaining lease term was 6.4 years (6.5).
* The total yield on investment properties amounted to 9.8 per cent (24.7). The
direct yield amounted to 6.0 per cent (6.5).
* Rentable space totalled 3,230,000 square metres (3,281,000).
* During the year the Vaxthuset block (the former Pedagogen) in Molndal with
approximately 35,000 square metres, the Royal College of Music property in
Stockholm with 16,000 square metres and the Seminariet block in Uppsala
totalling 11,000 square metres were sold. The sales have contributed to profit
to the amount of SEK 56 million.
* The Board will decide on a proposed dividend at its meeting on March 7, 2007.
* Prospects for 2007 are a profit in line with the profit for 2006,
notwithstanding changes in the value of properties and financial items.
Year-End Report 2006
Statement by the President
Akademiska Hus reports a stable and very good result for 2006. This can be seen
primarily in the following factors:
- An increase in the value of investment properties amounting to SEK 1,874
million as a result of the continued strength of the property market in 2006.
The increase in value is almost entirely an effect of the reduced yield
requirements.
- Rental income is stable and vacant space has continued to be very low,
equivalent to 2.6 per cent of the rent.
- A considerable increase in the market price of energy has had a limited impact
on profit as a result of previous negotiations and the continued work aimed at
bringing about energy savings.
- The net operating income has increased to SEK 2,843 million (2,727), primarily
as a result of reduced maintenance costs.
- Net interest income/expense improved to SEK -419 million (-647) through the
increase in value of derivatives as a result of the rise in interest rates.
A considerable part of the profit - the changes in value in investment
properties and derivatives - are non-recurring effects in the form of
unrealised, positive changes in value.
The underlying, current property operations are, however, very stable and it is
particularly gratifying to see that the net operating income is developing
positively.
The relatively weak rental market means that we are continuing to encounter
strong competition from other property companies and that the scope for
increasing rents is non-existent or very limited. A positive effect of this is
that it puts cost efficiency in property management in focus in order to achieve
good profitability. We have therefore taken new initiatives to capitalise
further on volume benefits in procurement and the potential for co-ordination
savings within the group.
The three major property sales during the year involve objects which are no
longer needed for higher education - Pedagogen, used for teacher training in
Molndal, the Seminariet teacher training facility in Uppsala and the present
Royal College of Music in Stockholm. Agreements have been reached whereby
Akademiska Hus constructs completely new premises for the Royal College of Music
in Stockholm and for teacher training and other activities in Uppsala. These are
major investments worth a total of approximately SEK 1,000 million.
During the year a number of construction projects were commenced, including a
pharmaceutical centre in Gothenburg and new construction for the Faculty of
Technology and Science in Karlstad. A decision has also been reached on major
new construction in Solna for the Karolinska Institute Science Park. It is
stimulating to see that the renewal work is continuing to create attractive
education and research facilities. At the same time, it is a major challenge
bearing in mind the present construction market, which is under considerable
pressure.
Key events in 2006
Reconstruction of the property Tre Vapen II at Gardet in Stockholm is currently
in progress on behalf of the National Academy of Mime and Acting and the
National Swedish Environmental Protection Agency. The group has decided to
construct a major new building in Uppsala for teacher training programmes,
education and psychology at Uppsala University. The cost of the project has been
estimated that SEK 515 million. The group has also decided to invest in modern
research laboratories at the Karolinska Institute Science Park, which it is
estimated will comprise 16,000 square metres. The investment is estimated to be
worth just over SEK 500 million and the largest tenant will be Biovitrum.
The sale has commenced of parts of the Svea Artilleri block in Stockholm to
Veidekke/Bouwfunds for the construction of what will be mainly residential
units. In Uppsala, a property on the Seminariet block has been sold to NCC. In
2006, the Vaxthuset block (the former Pedagogen) in Molndal was sold.
In October 2006, Thomas Norell took up the position of president of Akademiska
Hus. He was previously vice president and replaces Joakim Ollen.
Investments
Net investments in 2006 totalled SEK 1,804 million (469).
A number of major projects were completed in 2006, including buildings at the
Centre for Chemistry and Chemical Engineering and the Biomedicine Centre in
Lund, the A-building Part B in Linkoping and a new wing at the Angstrom
Laboratory in Uppsala. In Stockholm, mention can be made of the new SIDA
premises at Tre Vapen, the University College of Dance and ECDC (the European
Centre for Disease Prevention and Control) in what was formerly Tomtebodaskolan.
In Umea there has been redevelopment and extension of the university library and
in Lulea there has been redevelopment and an extension of the F-building which,
among other things, houses the Department of Civil, Mining and Environmental
Engineering.
Major current new construction, redevelopment and extension projects include new
construction in Karlstad at the Faculty of Technology and Science. In the
Kakenhus block in Norrkoping there is currently an extension in progress of
general office premises and a lecture theatre. On the Tre Vapen block in
Stockholm reconstruction is in progress for the National Academy of Mime and
Acting and the National Swedish Environmental Protection Agency. Planning is
also in progress for the Karolinska Institute Science Park and the Royal College
of Music in Stockholm and for Pedagogikum in Uppsala.
Results
Rental income
Rental income totalled SEK 4,544 million, which is an increase compared with the
same period in 2005 (4,481). The level of income was affected positively by the
addition of new construction, redevelopment and extensions together with
full-year effects of an equivalent nature in respect of 2005. Rental income has
fallen as a result of the sales which have taken place in Molndal (the former
Pedagogen), Uppsala (Seminariet) and Stockholm (Royal College of Music
building).
Rental level and vacant space level
The total holdings amounted to 3,230,000 square metres (3,281,000) of rentable
space. During 2006, the three above-mentioned properties in Molndal, Uppsala and
Stockholm, totalling 62,000 square metres, were sold. Vacant space was 3.5 per
cent (3.2), which is equivalent to 111,955 square metres (103,635). The vacant
space within Akademiska Hus compared with other property companies is low. The
figure includes vacancies of SEK 125 million (88) or just 2.6 per cent (2.1) of
the rental income, fully rented plus supplements. This reflects the fact that a
large proportion of the vacant space has a clearly lower rental value than the
average for the holdings. During 2007, vacant space expressed as rent, fully
rented plus supplements, is expected to fall to the 2005 level.
Lease agreements
The average term for newly signed lease agreements is ten years and at the turn
of the year the average remaining lease term was 6.4 years (6.5). For the
larger, more complex specialist buildings for laboratory and research operations
a lease agreement is normally required where the investment is largely repaid
within the agreement period. In these cases the leases are normally ten years or
longer.
Operating costs
In 2006, operating costs amounted to SEK 803 million (762), of which energy and
water totalled SEK 541 million (510). Average operating costs for the Group for
the year amounted to SEK 247/m2 (230). Of the operating costs, energy, fuel and
water accounted for SEK 167/m2 (155). The operating cost trend can be explained
mainly by the increase in energy costs in the form of substantial price
increases and increased energy taxes. The increasing technical complexity of the
buildings is also significant. Compared with other property companies, the
operating costs calculated in SEK/m2 are relatively high within Akademiska Hus
due to the high proportion of laboratories. Laboratory premises total just over
1.1 million square metres (36 per cent) and from an energy point of view they
are considerably more demanding in terms of resources than other premises.
Maintenance costs
Maintenance costs for the year totalled SEK 624 million (717). Investments by
Akademiska Hus in maintenance extending over several years have meant that the
standard of the property holdings is now generally high. Of the maintenance
costs, SEK 115 million (154) refers to tenant adaptations.
On average for the Group, maintenance costs for the year totalled SEK 192/m2
(220).
Net financial items
Net financial items for the year totalled SEK -419 million (-647).
The reason for the improvement is the increasing value of derivative instruments
as a result of the rise in interest rates. The average financing cost was 2.48
per cent (3.85).
Profitability
Net operating income i.e. the result of Group operations before changes in
value, central administration costs and net financial items totalled SEK 2,843
million (2,737). The net operating income level increased from 60 per cent to 62
per cent.
As a result of the improved assessed fair value of the investment properties the
direct yield during 2006 was slightly lower and amounted to 6.0 per cent (6.5)
of the value.
Return on equity amounted to 12.9 per cent (34.2). This exceeded the owner's
profitability requirement, which was 7.5 per cent.
Owner's financial objectives
From 2005, the owner's financial objectives have been set at:
- Yield requirement, estimated as the yield (profit after tax) on average
equity, shall be equivalent to the 5-year government bond interest rate plus
four percentage points viewed over a business cycle.
- The dividend target is 2.5 per cent of equity.
- The equity ratio should be at least 35 per cent.
Property valuation
The assessed fair value of Akademiska Hus investment properties as at 31-12-2006
was determined by means of an internal property valuation. The fair value was
SEK 48,454 million, an increase of SEK 2,838 million since the previous
year-end. The increase is due in the first instance to a positive unrealised
change in value amounting to SEK 1,818 million and also to investments for the
year totalling SEK 1,020 million net. The positive change in value can be
attributed to a reduction in the direct yield requirement. The general upturn in
the property market also continued during 2006. The category of properties which
dominate the Akademiska Hus holdings, properties with relatively long leases and
with tenants with a good credit rating, encountered a good level of demand
during the year.
Change in the property holdings during 2006 SEK m
Assessed fair value, December 31, 2005 45,616
+ Investments in new construction, extensions and redevelopment 1,603
+ Acquisitions 32
- Sales -615
+ Unrealised change in fair value 1,818
Of which increase in value, reduced yield requirement ( 1,683)
Assessed fair value, investment properties
December 31, 2006 48,454
New construction in progress as at December 31, 2006 amounted to SEK 894
million.
The internal cash flow valuation according to the above reported prerequisites
accounts for SEK 45,651 million (94 per cent) of the reported value of the
investment properties. The expansion reserves of SEK 984 million (two per cent)
have been calculated using the location price method. The remaining value of SEK
1,819 million (4 per cent) refers to objects with a special valuation basis.
Properties which have been assigned a value using a special valuation basis
include mainly development properties with uncertain future income and costs as
well as the few Akademiska Hus residential buildings.
Assessed fair value SEK m Proportion, %
Internal cash flow valuation 45,651 94%
Expansion reserves according to the
location price method 984 2%
Other valuation made with a
special valuation basis 1,819 4%
Assessed fair value,
December 31, 2006 48,454 100%
External valuations have been made as a benchmark for the internal cash flow
valuations. Fourteen of the larger objects have been valued externally. The
value of these amounts to SEK 4,805 million or approximately 10 per cent of the
total value. The deviation in value for the externally valued objects compared
with the internal valuation is on the object level within the +/- 10 per cent
margin of error. External valuations confirm the reliability of the Akademiska
Hus internal valuation model.
Financing
Interest-bearing liabilities
Net loan debt at the year-end amounted to SEK 16,781 million compared with SEK
17,143 million as at 31-12-2005. The maturity at the beginning of year was 4.0
years compared with 3.7 years at the turn of the year. Bond issues under the
long-term programmes were implemented in January to the amount of CHF 250
million and in December to the amount of SEK 800 million.
The fixed interest period for the part of the liability portfolio covered by the
fixed interest mandate has been reduced to 1.9 years compared with 2.4 years at
the previous year-end. The change is the result of the fact that interest rates
are expected to rise at a slightly slower rate than was assessed previously.
Interest-bearing liabilities
Amounts in SEK m 31-12-2006 31-12-2005
Commercial paper 1,606 -
ECP 510 435
Bonds and MTN 4,716 4,886
EMTN 6,967 10,593
Other loans 3,108 1,582
Total loans 16,07 17,496
Financial derivatives 1,122 944
Collateral received for
derivatives entered into 29 498
Pension provision 212 202
Total, other interest-bearing
liabilities 1,363 1,643
Total, interest-bearing
liabilities 18,270 19,140
Financing cost
The interest cost for the period according to IFRS, including changes in market
value, totalled 2.48 per cent (3.85) measured as interest cost in relation to
the interest-bearing liability's average capital. The lower financing cost can
be explained by the positive result from interest swaps as a result of the rise
in interest rates. According to earlier accounting principles, the interest cost
was 4.24 per cent (4.10).
Financing cost breakdown
According to
IFRS earlier principles
31-12-2006 31-12-2005 31-12-2006 31-12-2005
Loan financing cost, % 2.81 2.62 2.81 2.62
Interest swaps, net
interest, % 0.93 1.05 0.94 1.05
Period allocation
and charges, % 0.04 0.03 0.49 0.43
Changes in value, financial
instruments, % -1.30 0.15 - -
Total financing cost 2.48 3.85 4.24 4.10
Accounting principles
The Akademiska Hus consolidated accounts have been prepared according to the
International Financial Reporting Standards (IFRS). This Year-End Report has
been prepared according to IAS 34 Interim Financial Reporting. The accounting
principles and computation methods have remained unchanged compared with the
2005 Annual Report.
This report has not been the subject of an examination by the auditors.
Parent Company
Operations
Akademiska Hus AB is the Parent Company in the Akademiska Hus Group. Operations
comprise Group management and other Group functions. The Parent Company handles
all financing in the Group (see Financing section).
Income and profit/loss
The Company's income totalled SEK 132 million (107). Of this figure, income from
regional companies amounted to SEK 122 million (97). The operating loss was SEK
3 million (-20) and net financial income/expense was SEK 1,181 million (416),
including dividends from regional companies amounting to SEK 710 million (190).
The profit before appropriations and tax was SEK 1,184 million (396).
Investments
Investment in machinery and equipment amounted to SEK 3 million (4).
Equity
Equity totalled SEK 5,683 million (5,361).
Definitions
Direct yield
Operating surplus in relation to the average assessed fair value.
Equity ratio
Reported equity in relation to total assets carried forward.
Floor space, m2, gross
The gross floor space of the buildings. Comprises rentable floor space as well
as common areas and the area surrounding the building.
Floor space, m2
Rentable floor space in square metres.
Letting and vacant space levels
Rented or vacant floor space in relation to the total rentable floor space.
Financial letting or vacant space levels are rental income for space let and
estimated rental income for vacant space in relation to the total rental income.
Maintenance costs
Costs for measures taken to reinstate worn or damaged parts of buildings to
their original standard and function.
Net debt
Interest-bearing liabilities minus interest-bearing assets.
Net investments
Closing balance minus the opening balance for non-current assets plus
depreciation and impairments minus revaluations.
Net loan liability
Interest-bearing loans, financial derivatives and current interest-bearing
investments.
Operating expenses
Expenses for measures taken with an expected interval of less than once a year
aimed at maintaining the function of a management object. Operating expenses are
divided into energy and water supply and other operating expenses.
Property administration
Cost of management, day-to-day accounting administration, letting, contact with
tenants, handling of registers, contracts and drawings, technical planning and
follow-up and personnel administration.
Rental income
The basic rent, index-linked, and estimated rent for vacant rentable floor space
and supplements, with a deduction for vacancies and rent reductions.
Return on capital employed
Operating profit plus financial income in relation to average total assets.
Return on equity after standard tax
Earnings after financial income and expense with a deduction for full tax in
relation to average equity.
Return on total capital
Operating profit plus financial income in relation to the average total assets.
Financial information (Calendar)
Annual Report, March 2007
1st Quarter 2007, April 19, 2007
Annual General Meeting, April 19, 2007
2nd Quarter 2007, August 15, 2007
3rd Quarter 2007, October 23, 2007
Year-End Report 2007, January 2008
Akademiska Hus AB
Group Office - Box 483 - Stampgatan 14 - SE-401 27 Goteborg
Telephone: +46 31-63 24 00 - Fax: +46 31-63 24 01 - www.akademiskahus.se -
info@akademiskahus.se
This information is provided by RNS
The company news service from the London Stock Exchange
END
TSTOKQKQKBKDPBD
Bank Mont.34 (LSE:BR11)
過去 株価チャート
から 12 2024 まで 1 2025
Bank Mont.34 (LSE:BR11)
過去 株価チャート
から 1 2024 まで 1 2025
