Interim Report January-September 2000

Interim Report January - September 2000 * The profit after financial items increased to SEK 406 million (SEK 364 m) * EPS increased to SEK 0.92 (SEK 0.83) after full tax * Equity/assets ratio increased to 23.4 per cent (22.8 %) * 75 properties have been sold for a total of SEK 1,164 million, yielding a profit of SEK 101 million * External valuation of the property portfolio completed - net asset value per share: SEK 18.20 (reported shareholders' equity per share, SEK 15,71) Results The profit after financial items increased to SEK 406 million (SEK 364 1 2) m) . EPS after full tax totalled SEK 0.92 (SEK 0.83). The improvement in the profit is primarily due to an increase in profit on the sale of properties. Rental income for the period totalled SEK 1,665 million (SEK 1,635 m). The operating surplus before depreciation totalled SEK 1,025 million (SEK 1,006 m). The operating profit increased to SEK 976 million (SEK 878 m). The profit includes SEK 101 million (40 m) in profits from the sale of properties and SEK 22 million (SEK 0 m) in refunds from the SPP pension premiums scheme. The financial net totalled SEK -570 million (-514) including interest grants totalling SEK 11 million (SEK 35 m). Rental income for comparable property holdings has increased by SEK 45 million and property-related costs by SEK 16 million. The operating surplus has thus increased by SEK 29 million during the first nine months of 2000 in comparison with the corresponding period in 1999. Operations Wihlborgs is one of Sweden's larger property companies. The operations are concentrated on the growth regions of Stockholm and Öresund, which collectively account for 91 per cent of the company's total rental 3) income . The property holding comprises commercial premises and residential accommodation with an annual rental value of SEK 2.3 billion, a total leasable floor area of 2.9 million sq.m. and a book value of SEK 20.6 billion. The market and property holdings 45 per cent, 46 per cent and 9 per cent of the total property holding's rental value are to be found in the Stockholm, Öresund and other regions, respectively. 34 per cent, 42 per cent and 24 per cent of the property holding's rental value comprises Residential Premises, Offices/Shops and Industrial/Hotel Premises, respectively. At the period end, the economic letting level for the Group's property holding was 95 per cent. Broken down by Wihlborgs' market areas, the letting levels in the Stockholm and Öresund regions are 97 per cent and 94 per cent, respectively, and 90 per cent for other properties. Commercial premises Both markets were characterised by high levels of demand, falling vacancy levels and rising rental levels. The performance in the Stockholm region was stronger than that in the Öresund region, with new construction work in progress or being commenced in certain parts of the Stockholm region to meet increased market demand. There are, however, substantial differences in both rental and demand levels between the various subsidiary markets within the respective regions. The sometimes extremely high office rents in the Stockholm region are only found in a limited area in the most central parts of the city centre. The pattern is similar in the Öresund region with the highest rents found in the central and most attractive parts of the respective cities. Residential premises Demand for residential accommodation in Stockholm is exceptionally high, and is also healthy in the Öresund region. This year's rental negotiations in the Stockholm region resulted in a 1.95 per cent increase in rents as of 1 July 2000. In Malmö, rents were increased by an average of 2.5 per cent from 1 January 2000. 1) The comparative figures for Profit & Loss Account items refer to values for the period from January to September 1999, whilst those for Balance Sheet items refer to values as of 31 December 1999. 2) For definitions, please see page 13. 3) Refers to rental values on a full year basis, which are defined as rent payable as per 30 September 2000 on a full year basis plus estimated market rental on a full year basis for vacant floor area. ------------------------------------------------------------ This information was brought to you by BIT The following files are available for download: The full report The full report

9 Nov 2000 12:32 PM

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