Nyfosa AB: Interim report January – March 2021

JANUARY – MARCH 2021

  • Income amounted to MSEK 571 (430), up 33 percent.
  • Profit from property management amounted to MSEK 421 (344), up 22 percent.
  • Profit from property management excluding changes in value and tax in joint ventures amounted to MSEK 283 (260), up 9 percent.
  • Distributable cash flow per share amounted to SEK 1.15 (1.20), down 4 percent.
  • Profit after tax amounted to MSEK 639 (659).
  • Profit after tax per share was SEK 3.46 (3.80).

SIGNIFICANT EVENTS DURING AND AFTER THE QUARTER

  • In February, a retail property was divested for MSEK 220.
  • In March, a 12-year lease for the establishment of a new production facility in Eskilstuna was signed. The lease encompasses an area of 14 thousand sqm with a planned expansion to a total of approximately 70,000 sqm.
  • In March, a combined acquisition and divestment agreement was entered into, comprising acquisitions of five properties for MSEK 657 and divestments of two project properties for MSEK 477.
  • After the period, Nyfosa announced that the company has established a green finance framework and considers issuance of a green bond, and announces a conditional tender offer for the company’s outstanding bonds.
  • After the period, Nyfosa announced the decision to build up a diversified property portfolio with a long-term perspective in the Finnish property market together with Brunswick Real Estate.

COMMENTS FROM THE CEO

During the first quarter of the year, Nyfosa showed continued stability with positive net leasing and strong key figures. In March, we leased a property in Eskilstuna for a unique establishment in the Swedish battery industry. The Chinese company Senior is planning to expand its operations and create one of Europe’s largest production facilities for deliveries to customers including Northvolt. Of course, it is very positive that Nyfosa can contribute to such an investment in Sweden, in which we will be an important piece of the puzzle for the continued expansion of Senior’s operations.

In April, we took another step in building up cash flow and value. We are now entering the Finnish market, which does not have an opportunistic player like Nyfosa. Our assessment is that there are attractive opportunities for good business. The aim is to build up a diversified property portfolio with a sustainability profile in the Finnish market and achieve a property value of SEK 7 billion within five years. The start-up phase will be short for us based on our partnership with Brunswick Real Estate, which is already established in Finland.

We continue as we have always done, by doing business where we see opportunities. A strong banking and capital market provides an opportunity to continue to grow profitably. With a green finance framework in place, we are also creating a platform for various forms of green financing, while at the same time providing yet another tool in our sustainability efforts.

Stina Lindh Hök, CEO