Shareholders’ equity
Shareholders’ equity amounted to SEK 11,964m (11,890) at the end of the period and the equity/assets ratio was 38 per cent (39). Shareholders’ equity per share totalled SEK 74 (73). Excluding deferred tax on fair value adjustments of properties, net asset value per share was SEK 85 (84).
Interest-bearing liabilities
Access to long-term and stable financing is crucial to the pursuit of a long-term sustainable business. Fabege values long-term and trusting relations with its creditors.
Interest-bearing liabilities at 31 March 2012 totalled SEK 17,086m (16,755) and the average interest rate was 3.68 per cent excluding and 3.77 per cent including commitment fees on the undrawn portion of committed credit facilities.
The company has decided to sign long credit agreements with some of the largest banks in the Nordic region. The credit agreements enable the company to borrow funds as needed within a predetermined framework, and to govern the terms in the form of, for example, margins that are to apply in the coming years. At 31 March 2012, Fabege’s credit agreements these had an average maturity of 5.4 years, and are regularly renegotiated well before maturing. The Group’s borrowing requirements and its access to credit lines are presented in the diagram below.
Loan maturity structure, per 31 March 2012
| Year, maturity |
Credit agreements, SEKm |
Used amount,
SEKm |
| Commercial paper programme |
5,000 |
2,461 |
| < 1 year |
2,034 |
1,514 |
| 1-2 years |
5,540 |
3,240 |
| 2-3 years |
469 |
469 |
| 3-4 years |
7,040 |
5,385 |
| 4-5 years |
41 |
41 |
| > 5 years |
4,975 |
3,976 |
| Total |
25,099 |
17,086 |
Credit facilities and capital requirement, per 31 March 2012
Bond financing program
In December, Fabege launched a bond financing program with a limit of SEK 5,000m via the co-owned company Svensk Fastighetsfinansiering AB (SFFAB).
Through the bond financing program Fabege borrowed SEK 289m and thus has a total outstanding volume of SEK 429m in the form of three-year bonds. The bonds are secured by property mortgage deeds.
The bonds are secured by property mortgage deeds. SFFAB is jointly owned by Fabege, Wihlborgs, Peab and Brinova. Fabege owns 30 per cent of the company. The aim is to expand the company’s financing base with a new source of financing.
Commercial paper programme
As a supplement to traditional bank financing, Fabege is active in the Swedish commercial paper market, with commercial paper worth SEK 5,000m. The company guarantees access to unutilised credit facilities to cover all outstanding commercial paper at any given time. As of 31 March 2012, outstanding commercial paper amounted to SEK 2,461m, compared with SEK 1,719m at the beginning of the year.
Fabege has available long-term credit facilities covering all outstanding commercial paper at any given time. At 31 March 2012, the company had unutilised committed lines of credit of SEK 3,013m.
Covenants
Fabege’s obligations concerning covenants are similar in the various credit agreements and stipulate an equity/assets ratio of at least 25 per cent and an interest coverage ratio of at least 1.5. At the property level, the loan-to-value ratio varies between 60 and 75 per cent, depending on the type of property and financing.
Collateral
Fabege’s borrowing is largely guaranteed by property mortgage deeds. Shares in property-owning subsidiaries are also deployed as collateral to a lesser extent. Some unsecured borrowing is also undertaken. The distribution of collateral is presented in the diagram to the right.
Other liabilities
Other liabilities mainly comprise non-interest-bearing liabilities, such as accounts payable, deferred tax liabilities, and prepaid expenses and accrued income.