New lettings corresponding to 170,000 square metres (99,000) and an annual rent of SEK 706 million (338) were contracted during the period. Game developer King and Stureplansgruppen, among others, are moving into Sergelhuset in central Stockholm at the end of 2020. In Garnisonen in Stockholm, Wise Group has leased 3,600 square metres and at Hilton in Frösundavik, outside Stockholm, IFS Sverige has leased 1,300 square metres.
Rental revenue increased to SEK 5,232 million (5,006). For comparable property holdings, the increase was 7% (5).
New lettings corresponding to 170,000 square metres (99,000) and an annual rent of SEK 706 million (338) were contracted and net lettings amounted to SEK 298 million (6).
The occupancy rate was 93.1% (92.8) at the end of the period. Of total vacancies, 2.3 percentage points (2.9) were attributable to ongoing projects and development properties.
Operating surplus increased to a total of SEK 3,875 million (3,616). For comparable property holdings, the increase in net operating income was 7% (6).
Profit before value changes and tax rose to SEK 3,716 million (2,731), where the result from participations in joint ventures accounted for SEK 887 million of the increase.
The change in the property value amounted to SEK 6,769 million (6,692), corresponding to a 5.0% (5.4) increase in value
The portfolio value at the end of the period amounted to SEK 147,385 million (134,303)
The value change in derivatives amounted to negative SEK 1,713 million (positive: 170), which was due to falling long market interest rates.
Profit after tax amounted to SEK 7,215 million (8,902).
For comparable property holdings, the increase in rental revenue was 7% (5). Renegotiations and lease extensions corresponded to 230,000 square metres (215,000) and annual rent of SEK 772 million (645), resulting in an increase on the previous rent payable of 12.3% (11.2).
“We are experiencing a great deal of interest in Sergelhuset and we have also started modernising Sergelgatan. Walking around Sergels Torg, you can already sense the potential in what we call Sergelstan,” says Fredrik Wirdenius, CEO of Vasakronan.
In Södermalm in Stockholm, development of the Nattugglan property into a modern office building of 15,000 square metres is now beginning. A 15-year lease with Tyréns for 12,000 square metres at the property has already been signed. This means that the occupancy rate already amounts to 80% at the start of construction.
In August, Vasakronan’s Board appointed Johanna Skogestig as the company’s new CEO. Johanna has extensive experience from various assignments in the property sector and, since 2015, has been responsible for property investments at Vasakronan. Johanna takes office from 1 November.