Annual and Sustainability Report 2018
Total Page:16
File Type:pdf, Size:1020Kb
Annual Report 2018 with Sustainability Report Contents General One of Sweden’s largest private property companies .... 1 The year in brief ...........................................................................2 Page Page Statement by CEO ........................................................................5 Business concept, vision and mission ................................6 Business model ............................................................................7 18Properties across 24Property management that The Rikshuset concept – a strategic property ..................8 all of Sweden makes a difference Rikshem’s five target areas .....................................................10 Global challenges and possibilities .....................................12 Navigating towards sustainability .......................................14 Rikshem holds stable market position ...............................16 Operations Properties across all of Sweden ............................................18 Property valuation .................................................................... 22 Active property management .............................................. 24 Actions for a brighter future .................................................. 30 Zoning plans that support growth ..................................... 34 Property development potential ........................................ 36 Residential areas for everyone ............................................ 38 Page Engagement as a driving force ............................................40 Financial reports, governance and index 35Design with care Financing .....................................................................................44 Risks and risk management ................................................. 46 Board of Directors ......................................................................51 Management .............................................................................. 52 On the Sustainability Report ................................................ 54 Index of the statutory sustainability report ..................... 55 GRI content index ..................................................................... 56 Page Report of the Directors ............................................................60 Corporate governance report ............................................... 65 Financial statements ................................................................68 38 Residential areas Notes ...............................................................................................77 for everyone Auditor's report ........................................................................ 104 List of properties ...................................................................... 109 Key performance data ............................................................118 Definitions ..................................................................................119 Page Page CoverCover image: image: TheThe VänskapensVänskapens VägVäg retirementretirement homehome inin Kalmar,Kalmar andwhere xxxxxxxx. the large lounge with the open fireplace xxxxxxxxxxxxxxxxxprovides an important meeting place for the elderly 42Two career journeys 54On the Sustainability residents (bottom image). The top image shows the Radiomasten area in Luleå. xxxxxxxxxxxxxxxxxxxxxxxxx through Rikshem Report One of Sweden’s largest private property companies Rikshem owns, develops and manages residential properties and properties for public use - sustainably and for the long term. The properties are located in selected growth areas across the entire country. Rikshem’s vision is to make a difference in the development of the good community. 28,840 SEK 46 billion Rikshem provides Sweden with 28,840 The market value of the properties residential properties, from north to south. totaled MSEK 45,687. Attractive housing Properties for public use for all stages of life for young and old Rikshem offers student housing, Properties for public use, such as apartments for young people, rental preschools, schools and nursing homes, apartments and senior residences. make up approximately 30 percent 1) of Rikshem’s property portfolio. Professional community Long-term involvement owner By combining a sense of professionalism Rikshem is owned by the with community involvement, Rikshem aims Fourth Swedish National Pension Fund to promote long-term, sustainable and AMF Pensionsförsäkring AB, community development. each of which owns 50 percent. 1) Based on the properties’ market value Rikshem’s Annual Report and Sustainability Report 2018 1 The year in brief Rikshem’s first new construc- tion project in Luleå was ready for occupancy during the year. The wooden building, houses 94 rental apartments. Luleå The Flyttfågeln project in Umeå Umeå, encompassing 132 Building permits were received for apartments, was completed 74 apartments that will be finished in and ready for occupancy Östersund in February 2020. Sustain- Östersund during the year. ability focus, with plans for solar panels on the roof, along with a car pool and charging stations. 38 young people were given summer jobs at Rikshem in Uppsala. A total of 153 young The company took possession of people worked at Rikshem over the summer. 257 modern rental apartments, con- In Uppsala, the company built the Nordic structed in 2011 to 2015, in Västerås. region’s largest nursing home. An agreement was also signed for an adjacent property in development comprising a further 74 apartments. Uppsala In Märsta, Rikshem took posses- sion of two newly built residential buildings with 82 apartments. Västerås A property for public use comprising Around Stockholm County, 7,300 square meters was acquired in Greater 13 smaller LSS properties (homes Ale. An agreement was also signed for Stockholm for people with disabilities) were the acquisition of properties for public divested. use in three other locations. Norrköping Ale 132 apartments were constructed in Norrköping, with occupancy beginning in spring 2019. An agreement Rikshem initiated safety was signed during the year concerning the acquisition analyses of eight areas, of a combined residential and public use property, to including Fredriksdal in be finished in 2021, with 101 rental apartments and Helsingborg, with the aim a nursing home with 72 apartments. of providing greater safety. Kalmar The company took pos- session of 84 apartments Helsingborg in Helsingborg. During the year, the company took possession Malmö of four new residential properties with a total of 187 rental apartments in Kalmar. The Vänskapens Väg nursing home, nominated for Open internet installations Kalmar’s Urban Design Prize, opened its doors. mean that tenants in Malmö and Helsingborg are now free to choose their supplier within digital services such as TV, broadband and telephony. 2 Rikshem’s Annual Report and Sustainability Report 2018 Property-related Financial key figures key figures MSEK 2018 2017 2016 2015 2018 2017 2016 2015 Market value of properties 45,687 41,039 37,878 32,009 Loan-to-value ratio, % 58 59 62 66 Rental income 2,792 2,665 2,484 2,040 Loan-to-value ratio, secured loans, % 10 12 15 21 Net operating income 1,524 1,555 1,420 1,192 Interest-coverage ratio, multiple 3.2 3.5 3.8 3.6 No. of properties 555 586 574 533 Interest-rate duration, years 5.1 5.3 2.6 2.4 Property yield, % 3.5 3.9 4.1 4.2 Debt duration, years 4.1 3.0 1.9 1.4 All key performance data is presented on page 118. Total return 1) Rental income for the year Total return for the year Rental income rose was 8.4 percent. to MSEK 2,792 during the year. Breakdown of Breakdown of the Return on equity Total return 1) rental income properties’ market value %% 30 12 25 10 20 8 15 6 10 4 5 2 • Residential leases, 64% • Residential properties, 70% 0 0 • Public sector, 28% • Properties for public use, 28% 2015 2016 2017 2018 2015 2016 2017 2018 – Nursing homes, 22% • Private sector, 8% – Schools, 6% • Commercial properties, 2% 1) Sum of property yield and change in value of property portfolio. Rikshem’s Annual Report and Sustainability Report 2018 3 Kolonien 11 & 12, Norrköping 2018 Active property management for increased customer satisfaction. Statment by CEO Statement by CEO In 2018, strategic changes were made to boost our focus on more active property management, increased customer satisfaction and long-term neighborhood development to ensure higher property values. Our earnings were in line with the preceding year and we experienced favorable growth in value through acquisitions. Both customer and employee satisfaction increased. We started the year with an ambitious busi- satisfaction. This year’s measurements are risk to build in certain areas. Although we are ness plan, with increased focus on property moving in the right direction and we expect seeing favorable demand, the gap between management and customers. It fills me with that a more active approach to property the rent required to generate a positive return a sense of pride to report that we accom- management will further improve customer on a new construction project and the rent plished a number of major strategic moves satisfaction. Our efforts to strengthen our level in existing properties is substantial. This during the year, including within our cus- corporate culture have been key in achieving is resulting in increased relocation and higher tomer and property management initiatives, a higher level of satisfaction among our em- vacancy rates in newly constructed