January-
-
Rental income amounted to
SEK 254.5m (185.7), an increase of 37%. -
Net operating income amounted to
SEK 186.4m (132.3), an increase of 41%. -
Income from property management decreased 57% to
SEK 24.1m (56.3), of which income from property management attributable to shareholders wasSEK 15.2m (31.1), corresponding toSEK -0.33 (0.74) per share. The decline was mainly due to negative changes in the values of properties in joint ventures of appropriatelySEK -29m and higher interest expense. -
Net income after tax amounted to
SEK -148.3m (342.5), corresponding toSEK -4.89 (7.06) per share. -
Long-term net asset value attributable to shareholders decreased 4% to
SEK 3,516.1m (3,649.5), corresponding toSEK 77.09 (86.94) per share.
April-
-
Rental income amounted to
SEK 125.6m (92.1), an increase of 36%. -
Net operating income amounted to
SEK 95.5m (68.8), an increase of 39%. -
Income from property management decreased 49% to
SEK 12.8m (25.4), of which income from property management attributable to shareholders wasSEK -7.8m (11.9), corresponding toSEK -0.17 (0.28) per share. The decline was mainly due to negative changes in the values of properties in joint ventures of appropriatelySEK -10m and higher interest expense. -
Net income after tax amounted to
SEK -106.6m (175.5), corresponding toSEK -3.04 (3.87) per share.
Significant events during and after the end of the quarter
Second quarter April-
-
During the quarter, 66 residential units in the Tryckeriet project in Norrtälje were completed for a rental value of approximately
SEK 6.0m . -
In May,
Genova repurchased bonds in the amount ofSEK 115m of a bond loan due on30 September 2023 . -
In May,
Genova announced that its climate targets had been validated and published by the Science Based Target initiative. The targets are to reduce the company's GHG emissions by 42% by 2030 compared with levels in 2021 in Scope 1 and Scope 2, and to measure and reduce emissions in Scope 3. -
In May,
Genova agreed to sell the Gredelby 7:89 property in central Knivsta. The sale was transacted at an underlying property value ofSEK 85m . The annual rental value amounted to approximatelySEK 6.0m and the remaining duration was approximately 4.5 years. - The Annual General Meeting resolved to introduce a long-term incentive programme by way of a directed issue of warrants with subsequent transfer to the participants.
Events after the end of the quarter
-
In July, an agreement was signed to divest two fully leased hotel properties in Palma,
Majorca , for approximatelyEUR 35m , corresponding to approximatelySEK 410m . The properties are not of a long-term strategic nature for the company and are low-leveraged, and the divestment providesGenova with net liquidity of approximatelySEK 350m , which will be used to reduce the company's indebtedness. Exit is planned forSeptember 2023 .
CEO'S STATEMENT
We find ourselves in a challenging time with rising interest rates that are weighing on profitability in the industry, which is leading to higher yield requirements resulting in declining property value. The key for
Operations continued to perform stably during the first half of the year in both property management and project development. We reported positive growth in rental income of 37% and an increase in net operating income of 41%, mainly due to a larger investment property portfolio and completed projects. Income from property management was impacted by rising interest expense, and in particular negative changes in value in associated companies, falling to
Financing
During the quarter, work continued to ensure strong liquidity and to reduce indebtedness. We conducted a number of divestments that strengthened our balance sheet and reduced our annual interest expense by approximately
During the first half of the year, bonds in the amount of just over
Investments
During the period, we continued to invest in project development, which mainly comprises newly developed rental apartments in ongoing projects in Norrtälje, Enköping, Upplands-Bro and Knivsta. Demand for the apartments we develop remains strong and we can see clear interest in newly developed rental apartments in the investor market. Occupancy began in Knivsta during the second quarter and the remainder will be gradually completed in 2023 and 2024. In Norrtälje, 66 residential units were completed for occupancy in the first half of 2023. Occupancies in 2023 will help to strengthen our long-term earnings.
Michael Moschewitz, CEO
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https://news.cision.com/genova-property-group-ab--publ-/r/genova-property-group-interim-report-january-june-2023,c3818294
https://mb.cision.com/Main/13559/3818294/2230467.pdf
https://mb.cision.com/Public/13559/3818294/8d3483e149a1787a.pdf
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