- Income amounted to
SEK 1,882 million (2,221) -
Operating surplus amounted to
SEK 1,223 million (1,543) -
Net financial income amounted to
SEK -622 million (-741) -
Profit from property management amounted to
SEK 517 million (710) -
Changes in value of properties amounted to
SEK -1 million (-1,406) during the quarter and to
- Changes in value of derivatives amounted to
SEK -72 million (-95) -
Profit/loss for the period amounted to
SEK 6 million (-2,729) -
Net letting amounted to
SEK 87 million -
The value of investment properties amounted to
SEK 56,101 million (58,033) -
Net asset value (NAV) per ordinary share of class A and B amounted as of 30 June to
SEK 17.28 (17.57)
EVENTS DURING THE SECOND QUARTER
- During the quarter, 20 properties were divested for a total underlying property value of
SEK 800 million . - During the quarter, several leases were signed, including five leases in the properties 28&7 and 1245
- Bonds with an outstanding amount of
SEK 2,261 million were redeemed at maturity.
-
Repurchase of bonds totaling
SEK 1,036 million was made, mainly consisting ofSEK 716 million in bond maturing inOctober 2024 andSEK 253 million in bond maturing inFebruary 2025 . -
Senior unsecured green bonds of
SEK 500 million were issued under a framework ofSEK 2,000 million , with a term of 2.75 years, carrying a variable interest rate of 3-month Stibor plus 375 basis points and maturity on19 January 2027 . Under the same framework, additional bond loans were issued totalingSEK 550 million . -
An increase of
SEK 150 million was made in bonds maturing inMay 2026 .
Comment by the CEO
Positive net letting and continued focus on a long-term strong balance sheet
When we sum up the first half of the year, we can take pride in the continued strength of our core operations in letting and property management with positive net letting of
The market that we operate on has been affected for a number of years now by the effects of a pandemic, a challenging geopolitical climate and a financial situation with increased interest rates and rising inflation. If we also take into account a bond market which for a period was more or less completely closed, we can quickly draw the conclusion that the business climate has been extremely challenging. All real estate companies have struggled with depressed values and increased financial expenses and those with a high exposure to the bond market have had to divest parts of their portfolios to deal with their maturities, including ourselves.
New
We have sold over 220 properties during a two-and-a-half-year period and in this way almost halved our bond debt. During the first six months of 2024, a total of 33 properties were divested, or agreement was reached to divest, at an underlying property value of
Now we are again seeing inflation of a more controlled nature, with in the long run more favorable interest rates and a bond market that has opened up again. Even the yield requirements have now probably reached their peak level and the transaction market, which in
Stable core operations
The rental market generally shows relatively good demand. We can forget about the post-pandemic concern that the heydays of offices was over. Attendance at offices is increasing even if there are expectations of continuing possibilities of hybrid work. Our tenants are, of course, also positively affected by our having passed the peak of interest rates, which is reflected in dialogue with new and existing customers and in the number of enquiries about premises. Negotiation processes are still relatively long although the rental market is active, which is reflected in our letting statistics. Net letting amounted to
To date this year,
Total operating surplus has decreased given the changed composition of the portfolio although in a comparable portfolio, the operating surplus increased by 1 per cent and income by 4 per cent. Profit from property management amounted to
Our key figures for both the operating margin and the economic occupancy rate have gradually slightly decreased after the divestments. But, bearing in mind the strong net letting we have reported to date this year and last year, we are confident that the opposite effect will gradually affect our key figures although some rentals will only take effect in 2025 and 2026. The occupancy rate in the second quarter amounted, as in the previous quarter, to 86 per cent and the operating margin to 65 per cent for the first half of the year.
Focus on strengthened balance sheet
As mentioned above,
Since year-end, we have seen increasing liquidity in the capital market, which has led to shrinking credit margins. The prerequisites thus exist again for raising new loans in the bond market which is why we also issued new green bonds during the first half of the year of a total of
We will continue to place a major focus on our financing and on reducing our loan-to-value ratio long-term. The interest-bearing debt amounted at the end of the second quarter to
Optimized operations
We look forward with confidence to an improved business climate in which we can continue to optimize our operations and, after our large divestments, focus again on increasing the occupancy rate and the operating margin. With the ongoing work of strengthening our balance sheet, we are also well equipped for current market prospects and for rapid changes in the market.
I would like to wish our employees, investors and tenants a very pleasant summer.
Rutger Arnhult
CEO
FOR FURTHER INFORMATION, PLEASE CONTACT
Rutger Arnhult, CEO, +46 70 458 24 70, rutger.arnhult@corem.se
Address: P.O. Box 56085, SE-102 17 Stockholm
Visitors: Riddargatan 13 C
Reg.no: 556463-9440
www.corem.se
This information is information that
This interim report is in all respects a translation of the Swedish original. In the event of any discrepancies between this translation and the Swedish original, the latter shall prevail.
https://news.cision.com/corem-property-group/r/half-year-report-january---june-2024,c4014188
https://mb.cision.com/Main/9683/4014188/2913149.pdf
https://mb.cision.com/Public/9683/4014188/9c5fe4896fb012c8.pdf
(c) 2024 Cision. All rights reserved., source