The period in brief
- Rental income increased by 11.5 percent to SEK 258.6 million (231.9), SEK 13.2 million of which came from properties acquired in 2022.
- Profit from property management totalled SEK 135.4 million (135.4). For more information see page 12.
- Changes in the value of properties amounted to SEK 73.5 million (96.0). For more information see page 12.
- After-tax profit for the quarter amounted to SEK 72.9 million (400.3). Earnings per Class A and Class B share amounted to SEK 0.28 (note 1) and per Class D share SEK 0.50 (note 1).
- In all, investments in project and investment properties totalling SEK 417.3 million (366.7) were made during the quarter, as well as acquisitions of hydropower companies amounting to SEK 118.1 million.
- The fair value of the property portfolio at the end of the quarter was SEK 20,648.7 million (20,157.7).
1) No diluting instruments exist.
The CEO’s comments
The year 2023 has continued on the same path as the last one, with price increases, high interest rates and a general economic slowdown in society. The company continues to adapt its operations to the market and the picture of the new normal is now beginning to emerge. The value of Intea’s property portfolio is growing continuously and totalled SEK 20.6 billion at the end of the period. Rental income of SEK 258.6 million increased by just over 11 percent year on year, while profit from property management was SEK 135 million.
Intea’s business is built on a solid foundation of defensive assets with long-term leases with public-sector tenants. After benefiting from extreme market conditions for several years, there is now a correction with an accompanying slowdown in the pace of business. To reflect this change, Intea has started to reduce central expenses by 10 percent. The effects of the measures will start to be seen in the third quarter of 2023 and will be fully effective in the first quarter of 2024.
In February, Intea became fully self-sufficient in renewable electricity after acquiring nine hydropower plants in western Sweden. Following the acquisition, the hydropower portfolio, which goes under the name Intea Kraft, consists of 12 hydropower plants, mainly in electricity zone 3, with a total annual electricity production estimated at 11.5 GWh. In mid-March, the company began construction of a new train depot in Falköping. The new depot will have a lettable area of approximately 5,400 sqm and will be built immediately adjacent to Intea’s existing train depot. Construction is scheduled to begin in spring 2023, with occupancy in spring 2025.
During the quarter, Intea and the Nordic Investment Bank agreed on green financing through a 14-year loan of SEK 410 million. The loan will be used to finance the construction of a regional command centre in Örebro, the first of its kind in Europe, and the new wooden building that is under construction on the Östersund campus.
Through new interest rate derivatives entered into during the quarter, the company’s interest rate hedge ratio has increased from 59 to 73 percent. At the same time, Intea’s average interest rate has been kept low despite the increase in debt due to continuous project investments.
During the period, Charlotta Wallman Hörlin was appointed as the new Executive Vice President of the company. Charlotta, who has worked at Intea since 2019, replaces Christian Haglund, who is moving to work with strategic business development on a consultancy basis in the company. I am very much looking forward to working with Lotta in her new position.