Magnolia Bostad Annual Report 2019 19
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Find your home with Magnolia Bostad Magnolia Bostad Annual Report 2019 19 Table of Contents 2019 in brief 2 Directors’ Report and financial reports 68 Events In 2019 per quarter 4 Directors’ Report 68 A word from the CEO 6 Consolidated Income Statement 76 Consolidated Statement of Comprehensive Income 76 Our business 8 Consolidated Statement of Financial Position 77 Magnolia Bostad 10 years 8 Consolidated Cash Flow Statement 79 This is Magnolia Bostad 10 Consolidated Statement of Changes in Equity 80 Business model 11 Parent Company’s Income Statement 81 How we create value 12 Parent Company’s Statement of Comprehensive Income 81 Strategy and targets 14 Parent Company’s Balance Sheet 82 Shares and shareholders 16 Parent Company’s Cash Flow Statement 83 Magnolia Bostad as an investment 16 Parent Company’s Statement of Changes in Equity 84 The market 18 Additional Disclosures and Notes 85 Auditors’ Report 110 Magnolia Bostad’s projects 20 Multi-Year Summary 114 Projects for sale 24 Property for self-management 28 Corporate Governance Report 117 Presentation of selected projects 30 Corporate Governance 118 Project financing 40 The Board 128 Value and valuation 44 Management and Auditors 130 Articles of Association 132 Sustainability Report 47 Auditors’ Statement on the Corporate 133 A sustainable company 48 Governance Report Magnolia Bostad and Agenda 2030 50 Strategic focus areas 52 Annual General Meeting and other information 134 Magnolia Bostad’s life cycle perspective 56 Annual General Meeting 2020 134 Objectives and outcomes of sustainability indicators 64 Financial Calendar 134 GRI index 66 Definitions 135 Opinion of the auditor regarding the statutory 67 Contacts 136 sustainability report Magnolia Bostad's formal financial reports can be found on pages 68 – 109 and are audited by the company's auditors. On pages 30–38, we present a selection of projects we are working on: • Rental accommodation: Senapsfabriken, Uppsala, page 30. • New districts: Vårby Udde, Huddinge, page 32. • Tenant-owned apartments: Lilium, Uppsala, page 34. • Community service properties: Special care units for the elderly at Norrsken in Östersund, page 36. • Hotels: Rental accommodation: Senapsfabriken Hotels adjacent to Halmstad's new travel centre, page 38. New districts: Vårby Udde Tenant-owned apartments: Lilium Community service property: Hotel Norrsken Magnolia Bostad 2019 1 2019 in brief In 2019, we strengthened our building rights portfolio through a number of acquisitions and our investment in properties for self-management took off. During the year, we started the production process on a total of 2,678 residential units, which is well in line with our target. January–December 2019 Operating profit 2019, SEK m • Net sales amounted to SEK 751 m (1,054). • The operating profit was SEK 380 m (164), of which SEK 348 m (67) refers to changes in the value of managed properties. • The net profit before tax for the period was SEK 208 380 m (22) and the profit after tax was SEK 171 m (7). 2018: SEK 164 m • Earnings per share after deductions for minority shares was SEK 3.75 (0.26). Profit after tax 2019, SEK m • During the year, Magnolia Bostad agreed on the acquisition of 3,548 estimated building rights (3,068) and started the production process on 2,678 residen- tial units in 2019. • The Board of Directors proposes that no dividend be paid for the financial year (0). 171 2018: SEK 7 m KPIs, Group 2019 2018 Jan-Dec Jan-Dec Project-related Number of production starts during the period 1) 2,678 1,939 Number of sold residencies during the period 1) 533 1,314 Total number of residencies in production 1) 9,284 7,697 Number of estimated building rights in the portfolio 1) 18,037 17,288 Financials Operating profit SEK m 380 164 Return on equity, % 2) 14.1 1.0 Equity/assets ratio, % 29.6 30.3 Interest coverage ratio, times 0.9 0.7 Share-related Earnings per share, SEK 2) 3,75 0,26 Equity per share, SEK 2) 28,55 24,77 1) Including projects developed in JVs. 2) Excluding minority share For definitions of alternative KPIs that are not defines in IFRS, see note 36. 2 Magnolia Bostad 2019 Production process-started residential units 2019: rental, tenant- owned, residential care homes and community service properties 2,678 This included 1,057 residential units for self-management through joint ventures Projects acquired in 2019 Completed projects in 2019 Nine projects of a total of 3,5489 estimated Seven projects of a total 1,0607 residential building rights acquired, including 2,117 for units completed, including 68 for self- self-management management Projects developed in Earnings per share 2019 37 3,75 municipalities SEK per share Number of environmentally-certified projects in 2019 Four projects according to the Sweden Green Build- ing Council’s silver certification6 and two projects certified according to the Nordic Swan Ecolabel. Magnolia Bostad 2019 3 Events In 2019 per quarter Events in 2019 Q1 A decision was made to develop the Brogårdstaden project in Upplands Bro for self-management. The pro- Lilium in Nyby, Uppsala - a small town in a big city where Magnolia Bostad has developed 109 tenant-owned apartments and 252 rental ject consists of around 840 residential units. apartments. The Maria Forum project in Helsingborg consisting of 292 rental units was completed and handed over to the purchaser Alecta. Zoning plans came into force for three projects totalling around 1,300 residential units. Q2 Eight tenant-owned apartments were sold in the previ- Magnolia Bostad and Heimstaden Bostad formed a ously production-started Ophelias Brygga and Varvet joint venture (JV) with the aim of jointly developing Townhouse projects. around 800 wooden homes in the new southern part of Bro in Upplands-Bro municipality. The land was previ- ously owned by Magnolia Bostad. The turnkey contrac- tor is Derome and the production process has started on 645 residential units. An agreement was signed for the sale of 227 residential units in Norrtälje and Åkersberga to HEBA Fastighets AB. The estimated property value at completion is around SEK 670 m. The project has started the produc- tion process in Norrtälje, which comprises 167 residen- tial units. Magnolia Bostad signed an agreement to sell its part of the joint venture that owns the Skogskarlen project in Bergshamra, Stockholm. The property was acquired by Magnolia Bostad in 2014 and consists of an office building with a rentable area of around 9,000 sq.m. The production process started on stage 2 of the Lilium Maria Forum in Helsingborg, located in Mariastaden's new square, project in Uppsala, with 109 tenant-owned apartments, consists of seven five-storey buildings with square meter-smart studio of which 90 were sold during the quarter. 18 tenant- to 2-bedroom rental apartments. owned apartments were sold in the previously start- ed Ophelias Brygga, Piccolo and Varvet Townhouse projects. The Adjutanten project in Visby consisting of 68 resi- dential units was completed. The project was developed for long-term self-management. The Bryggeriet project in Helsingborg consisting of 327 rental units was com- pleted and handed over to the purchaser Alecta. 4 Magnolia Bostad 2019 Q3 Magnolia Bostad and Heimstaden Bostad formed another JV and signed an agreement to acquire land Magnolia Bostad is developing around 200 residential units in the in Åkersberga for developing around 2,000 residen- new Partille Port district in Partille. Representation tial units. The project will be developed for long-term self-management. An agreement was signed to acquire land in Orminge Centrum, Nacka, for developing around 200 residential and 72 residential care units. The production process started on three projects in- Q4 volving a total of 412 residential units that are being de- veloped for self-management. The projects are based in Magnolia Bostad and Slättö formed a JV for develop- Luleå, Eskilstuna and Örebro. ing housing and community service properties for long- term ownership and management. In the first phase, Investment support was granted for three of Magnolia the JV will acquire five projects, of which four are from Bostad's projects: Björnbäret in Kalmar, Kronandalen in Magnolia Bostad. The company is expected to account Luleå and part of Brogårdsstaden in Upplands Bro. for up to 800 residential units initially. 26 tenant-owned apartments were sold in the previ- An agreement was signed to acquire part of the ously production-started Ophelias Brygga and Lilium Tullholmssågen 4 property in Karlstad municipality. projects. Magnolia Bostad plans to develop around 430 residen- tial units on the property. Investment support was granted for the Övre Bangården project in Östersund. An agreement was signed to acquire land with a zoning plan in force in Nya Hovås, Göteborg. Magnolia Bostad plans to develop around 180 residential units in the property. JV partners were bought out and the entire property Partille 11:61 was acquired with a zoning plan in force, in the new Partille Port district. Magnolia Bostad plans around 200 residential units in the property, as well as retail units and an underground garage. The production process started on four projects to- talling 1,345 residential units, including 80 residential care units. These consist of two projects in the current project portfolio in Lund and Spånga and two recent- ly-acquired projects in Norrköping and Ystad. The pro- ject in Spånga has been sold as the first project in the framework agreement with Heimstaden Bostad. The The Kronandalen project in Luleå started the production process in estimated property value at completion will be around Q3 2019. Magnolia Bostad is developing 117 residential units for self- management. The project is a joint venture with Slättö as the other SEK 755 million.