Vasakronan interim report January–March 2019

A strong start to 2019

The first quarter of the year started with several major new lettings. A total of 93,000 square metres (27,000) was let during the quarter. This included a ten-year lease with the Swedish Tax Agency for 42,000 square metres at the Nya Kronan property in Sundbyberg. At the Tre Vapen property in Östermalm in Stockholm, a six-year lease has been signed with Handelsbanken for 12,600 square metres.

The first quarter of the year started with several major new lettings. A total of 93,000 square metres (27,000) was let during the quarter. This included a ten-year lease with the Swedish Tax Agency for 42,000 square metres at the Nya Kronan property in Sundbyberg. At the Tre Vapen property in Östermalm in Stockholm, a six-year lease has been signed with Handelsbanken for 12,600 square metres.

  • Rental revenue increased to SEK 1,724 million (1,643). For comparable property holdings, the increase was 6% (5)
  • New lettings corresponding to 93,000 square metres (27,000) and an annual rent of SEK 327 million (106) were contracted and net lettings amounted to SEK 167 million (decrease: 23)
  • The occupancy rate was 93.5% (92.8) at the end of the period. Of total vacancies, 2.4 percentage points (2.8) were attributable to ongoing projects and development properties
  • Operating surplus increased to a total of SEK 1,279 million (1,156), of which SEK 38 million was attributable to the transition to IFRS 16
  • Profit before value changes and tax rose to SEK 968 million (861), corresponding to an increase of 12% (3). The increase was primarily due to higher rental revenue
  • The change in the property value amounted to SEK 716 million (1,708), corresponding to a 0.6% (1.4) increase in value
  • The value change in derivatives amounted to negative SEK 627 million (negative: 24), which was due to lower long market interest rates
  • The portfolio value at the end of the period amounted to SEK 139,381 million (128,339)
  • Profit after tax totalled SEK 816 million (2,027)

For comparable property holdings, the increase in rental revenue was 6% (5). Renegotiations and lease extensions of 59,000 square metres (57,000) were completed with an annual rent of SEK 181 million (174), up 10.2% (10.7). The increase in rents was primarily due to continued strong demand for office premises and low vacancies. The strong rent trend in combination with the improvement in net financial items contributed to a 12% (3) increase in profit before value changes and tax.

“We have made an excellent start to the year with several major lettings, the most significant being the letting of Nya Kronan to the Swedish Tax Agency. This agreement provides us with the opportunity to create something really outstanding in central Sundbyberg, a city district that is particularly attractive owing to its unique location and atmosphere,” says Fredrik Wirdenius, CEO of Vasakronan.

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