STOCKHOLM, Sweden, Jan. 29, 2002 (PRIMEZONE) --
-- The profit after financial items increased to
SEK 704 million (SEK 652 m)
-- EPS increased to SEK 1.69 (SEK 1.48) after full tax
-- 17 properties have been sold for a total of SEK 2,722 million
-- Proposed dividend of SEK 0.80 (0.70) per share
-- Net asset value per share as of
December 31, 2001: SEK 21.00
Results
The profit after financial items increased to SEK 704 million (SEK 652 m) (a) EPS after full tax totaled SEK 1.69 (b) (SEK 1.48). Rental income for the period totaled SEK 2,076 million (SEK 2,239 m). The operating surplus before depreciation totaled SEK 1,261 million (SEK 1,362 m). The operating profit increased to SEK 1,423 million (SEK 1,416 m). The profit includes SEK 386 million (260 m) in profits from the sale of properties. The financial net totaled SEK -719 million (SEK -764 m) including interest grants totaling SEK 6 million (SEK 12 m). Rental income for comparable property holdings has increased by SEK 70 million and property-related costs by SEK 25 million. The operating surplus has thus increased by SEK 45 million (4.2%) during 2001 in comparison with 2000.
The profit after financial items for the fourth quarter totaled SEK 167 million (SEK 246 m). Rental income totaled SEK 524 million (SEK 574 m) and the operating surplus before depreciation totaled SEK 305 million (SEK 337 m).
Operations
Wihlborgs is one of Sweden's larger property companies. The operations are concentrated on the growth regions of Stockholm and Oresund, which collectively account for 89 percent of the company's total rental income(c). The property holding comprises commercial premises and residential accommodation with an annual rental value of SEK 2.5 billion, a total leasable floor area of 2.7 million sq.m. and a book value of SEK 21.9 billion.
The market and property holdings 49 percent, 40 percent and 11 percent of the total property holding's rental value are to be found in the Stockholm, Oresund and other regions, respectively. 23 percent, 60 percent and 17 percent 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 94 percent. Broken down by Wihlborgs' market areas, the letting levels in the Stockholm and Oresund regions are 95 percent and 93 percent, respectively, and 92 percent for other properties. Compared with the previous period the letting level has dropped by one percentage unit, which can chiefly be explained by the acquisition of Postfastigheter.
Commercial premises
The international downturn in the market during 2001 has meant that Swedish growth has been slowed down and that development of parts of the Swedish economy has been weak. After a strong start to the year the rent levels in the Stockholm region evened out at a high-level during the second half of the year. Especially in Stockholm city centre and Kista, 2001 represented a break in the trend after the strong development in recent years.
The highest quotations for office rents in these areas dropped, but from a very high level. In other parts of the Stockholm region the demand for premises has continued to be good. In Malmo and Helsingborg, 2001 has continued to represent a good rental market, with rising rents at the beginning of the year, followed by stabilization during the latter half.
Residential Premises
The demand for accommodation is very high in the Stockholm region and good in the entire Oresund region. In Malmo the demand for housing has greatly increased over the course of the year. It is expected that demand will continue to increase during 2002. The rent negotiations in Stockholm and Malmo have resulted in average increases of 2% and 1.2% respectively as from January 1, 2001.
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