Vasakronan’s Interim Report January – September 20222022-10-28
Strong results and increased revenue
- Rental revenue increased 9% (5) to a total of SEK 6,024 million (5,512). In comparable property holdings, the increase in rental revenue was 6% (2).
- New lettings were contracted corresponding to 124,000 square metres (83,000) and an annual rent of SEK 741 million (374). Net lettings amounted to SEK 278 million (negative: 187) for the period.
- The price change after renegotiations averaged 6%, compared with 9% last year. Renegotiations were completed in the period corresponding to an annual rent of SEK 802 million (917).
- The occupancy rate was 90.8% (91.0) at the end of the period. Of total vacancies, 1.2 percentage points (1.7) were attributable to ongoing projects and development properties.
- Operating surplus increased 7% (6) to a total of SEK 4,411 million (4,120). For comparable property holdings, the increase in operating surplus was 3% (2).
- The net interest expense amounted to SEK 827 million (expense: 807).
- Profit before value changes and tax rose 3% (3) to SEK 3,352 million (3,257). Excluding the result from participations in associates and joint ventures, earnings increased 9% (10).
- The change in the property value amounted to SEK 11,028 million (8,079), corresponding to a 6% (5) increase for the January to September period. For the third quarter, the value change was negative 1.1 per cent as a result of raised yield requirements. The property portfolio value at the end of the period amounted to SEK 194,037 million.
- The value change in financial instruments amounted to SEK 1,715 million (856), which was due to the increase in long-term market interest rates.
- Profit after tax was SEK 12,786 million (9,678).
“We continue to post strong earnings with a higher operating surplus and we are maintaining a high pace with new lettings. Demand is greatest for high quality premises in prime locations. We are well placed to meet this demand – a fact that is reflected in net lettings for the quarter. At the same time, there is considerable market uncertainty and every reason to be humble given the expected turmoil for some time to come,” says Johanna Skogestig, CEO.
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