- Revenue increased by 20 percent to sek 390 m (324).
- Net operating income increased by 15 percent to sek 258 m (225).
- Profit from property management increased to sek 159 m (150), corresponded to 2,73 usd/common share (2,76)
- Changes in value of properties amounted to sek 77 million (130).
- The period’s profit after tax amounted to sek 193 m (231), which corresponds to the 3.35 usd/common share (4,24).
Ceo Andreas Nelvig comments
The quarter’s operating income is the highest to date results as NP3 delivered for a quarter. Profit from property management amounted to eur 90.5 million, which is 14 per cent higher than the corresponding quarter of the previous year. For the first half of the year, profit from property management to 159,5 million which represents just over six per cent higher than for the same period of the previous year.
The increase in quarterly and halvårsresultaten is mainly due to a larger property portfolio but also in a slightly better occupancy rate. Profit from property management per common share amounted to 1,57 crowns (1,46) for the quarter and 2,73 crowns (2,76) for the half-year.
Uthyrningsmarknaden remains strong and despite the fact that we purchased vacancy has occupancy rate strengthened to 92 per cent. Nettouthyrningen is positive which indicates a favorable market. During the quarter, the larger leases completed in both Sundsvall and to the Valleys, which gives effect only during the beginning of 2019. The overall vakansvärdet amounted to sek 73 million at the balance sheet date. This is six million more than at the beginning of the year, but with regard to the fact that we acquired less than 14 million in vakansvärde is net positive with the eight million.
During the period, we divested fastigheteter that have been scattered in its geography, alternatively, where the sales has been to low yielder. We continuously evaluate our real estate holdings to find investments that increase our return without increasing our risk. The sales resulted in a realised change in value of nine million, and in addition, an unrealised value change of sek 68 million. The strong transaktionsmarknaden makes growth challenging and I can say that the more cautious view of the market during the winter was a seasonal variation.
In connection with NP3 developed, the board has decided to update and clarify the financial goals. The new, additional objectives are:
- Return on equity before tax shall be the lowest amount to 15 percent over a five-year period.
- Profit from property management per common share will have an annual growth of at least 12 per cent.
NP3 focuses on cash flow and hence shall our goal of 15 percent return on equity be reached by our management primarily. Our earning shows per quarter, an operating income of approximately sek 400 million, corresponding to just under 14 per cent return on equity. The underlying fastighetsbeståndets snittyield amounting to 6.7%. The remaining return will come from our portfolio of projects, leasings which lifts our existing property portfolio and further growth. Growth is central to the NP3 as it leads to lower risk in our funding and to the higher diversification in the portfolio. The growth will also lead to costs for central administration reduces in proportion to the revenues. There have been many new recruitments during the period, which together with the transition to a more cost-effective economic management weighs on the quarter something.
During the first quarter, the refinancing of our bond issue carried out. In order to reduce our risk in the refinancing, we have, for a large part of the quarter had a surplus in the coffers of the pending repurchase of the bond can be carried out on July 17. In addition, we have in connection to the end of the period loosely away a large proportion of sales promissory notes, which means that our cost of funding is high for the quarter.
The vacancy has decreased in our existing portfolio and uthyrningsarbetet will continue to be the focus of our daily work. In order to increase the freight rates continued to hire the «cheapest» way and it fell vakansvärdet will be the final result of the performance of the organisation. Focus on rental and in the future!
For further information, please contact:
Andreas Nelvig, ceo, NP3 real Estate
Telephone: 070-313 17 98
This information is such information that NP3 Fastigheter is obliged to publish under the EU marknadsmissbruksförordning and the law on the securities market. The information was submitted, by the above contact person in the government, for publication on 13 July 2018 there is a 08:00 CET.
NP3 is a kassaflödesorienterat real estate company with a focus on commercial investment property with high yield in the north of Sweden. 30 June 2018 was the real estate portfolio to 1 061 000 sqm of leasable area distributed on 273 real estate within the segments of commercial, industrial/logistics, office and specialfastigheter. The real estate portfolio is divided into six market areas: Sundsvall, Gävle, Sweden, Östersund, Umeå and Luleå. The value of property amounts to approximately 8.7 billion dollars. NP3-share is listed on Nasdaq Stockholm, Mid Cap. NP3 was founded in 2010 and has its registered office in Sundsvall, sweden. Read more on www.np3fastigheter.se.
Interim report January-June 2018
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Source: NP3 Fastigheter AB via Globenewswire