Vasakronan’s year-end report 2023

• Rental revenue increased 12% (10) to a total of SEK 9,157 million (8,167). The increase was primarily due to indexation. In comparable property holdings, the increase in rental revenue was 10% (6).
• New lettings were contracted corresponding to 117,000 square metres (159,000) and an annual rent of SEK 609 million (915). Net lettings amounted to a negative SEK 65 million (positive: 279) for the full year and SEK 14 million (negative: 4) for the quarter.
• Renegotiations were completed in the year corresponding to an annual rent of SEK 1,480 million (1,078), with an average price change of 1% above index (5).
• The occupancy rate was 90.9% at the end of the period and was 91.2% at the end of 2022.
• Operating surplus increased 15% (8) to a total of SEK 6,862 million (5,968). For comparable property holdings, the increase was 12% (3).
• Net financial items amounted to an expense of SEK 1,730 million (expense: 1,208), due to higher short-term interest rates during the year.
• The LTM interest coverage ratio decreased to a multiple of 3.8 (4.8), due to higher interest expenses.
• Income from property management amounted to SEK 4,852 million (4,481), up 8% (7).
• The change in the property value amounted to a decrease of SEK 16,550 million (increase: 4,917) for the year, corresponding to a decline in value of 8.7% (increase: 2.8), based on the external valuation of the entire property portfolio.
• The property portfolio value at the end of the year amounted to SEK 175 billion (188).
• The value change in financial instruments amounted to a decrease of SEK 1,720 million (increase: 1,291), attributable to the downturn in long market interest rates.
• Profit after tax amounted to a loss of SEK 10,858 million (profit: 8,465).
• The Board of Directors proposes to the Annual General Meeting that no dividend (0) be distributed.

“Our underlying operations continue to deliver stable figures and our income from property management grew 8%,” says Johanna Skogestig, CEO. “Demand for high-quality premises in prime locations remains strong. This favours a company such as Vasakronan and was confirmed by the key metrics for the past year, in which we have once again reported strong trends both for rental revenue and for the operating surplus.”

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