Q1 September -November 2023
Figures in brackets refer to the same period last year)
- Total rental income increased by 6 % to 160 MSEK (151)
- Net operation income increased by 19 % to 117 MSEK (98)
- The profit from property management increased to 46 MSEK (35)
- Change in value for investment properties amounted to 35 MSEK (-182)
whereof realised change in value amounted to 1 MSEK (-)
- Comprehensive income increased to 45 MSEK (-138)
- Earnings per share 0.65 SEK (-2,40)
- Property value amounted to 10 806 MSEK (10 810)
CEO Niclas Bergman comments:
Increased rental income and improved net operating income
The financial development for the first quarter shows that we continue to gradually increase our earnings. Rental income rose by 6 percent to 160 MSEK (151) and operating net income increased by 19 percent to 117 MSEK (98). The increased net operating income was primarily driven by increased income and cost control. The property portfolio amounts to SEK 10.8 billion (10.8) as of November 30, 2023, and consists primarily of high-yielding properties with a total yearly rental value of SEK 641 million. Two thirds of the portfolio consist of commercial properties with index-regulated contracts. In conjunction with the estimated rent increase on residential properties from January 1, 2024, arises an additional approximately 35 MSEK in annual rental value, consequently increasing the operating net.
During the first quarter, a commercial property has been completed which is fully let and adds 3.1 MSEK in annual rental value. A property portfolio with 15 properties in Ulricehamn and Borås has been acquired. The portfolio has an annual rental value of 11 MSEK, which increases Nivika's total property portfolio in Ulricehamn and Borås to 700 MSEK. Seven properties have been divested at, or just above, book value and have added SEK 120 million in liquidity.
High occupancy rate
It is pleasing that the occupancy rate continues to remain at a high and stable level. Demand remains good in Nivika's markets, and the economic occupancy rate was 95 percent for commercial properties and 97 percent for residential properties at the end of the quarter. Nivika has several inquiries and is in active dialogues regarding commercial new constructions and extensions in the company's market, both from new and existing tenants. During the first quarter anew construction of a commercial property in Växjö, an inspection facility for Opus, was started.
Refinancing enables more profitable acquisitions
During the first quarter, Nivika has carried out a rights issue of approximately 500 MSEK, increased the company's financing via banks for a total of 400 MSEK, added 235 MSEK in additional long-term loan and 165 MSEK in construction loan with granted final financing. During the first quarter, the company has also repaid the outstanding bond loan of 650 MSEK, which means that Nivika's financing therefore does not include any bond loans. Through these activities, the balance sheet and the Company's financial position have been strengthened. This provides Nivika new opportunities to carry out selective complementary acquisitions and become more assertive with acquisitions in an attractive acquisition market with geographical focus on our main geographical areas of Jönköping, Värnamo, Växjö and the West Coast.
In December, after the end of the period, Nivika acquired three fully let triple-net properties in three separate transactions. The average remaining lease term is approximately 10 years, and the properties have an average yield of 8.25 percent. The properties are adjacent to the existing property portfolio and belong to the Värnamo market area. With good locations, fully leased and with long contract terms the properties are typical of Nivika's property portfolio. These transactions were so-called off-market transactions, i.e. the deals were made directly between buyers and sellers without advisers or brokers. The transactions are fully in line with Nivika's strategy to continue growing with high-yield properties in selected locations.
Continued value growth
Nivika's business model consists of developing and creating value in the property portfolio through upgrading existing properties, drawing up zooning plans to create building rights, project development in attractive locations and through strategic acquisitions. This, in combination with a diversified property portfolio and long-term management, gives us a solid foundation to stand on and strong cash flows. With expanded and stable financing, we now have good opportunities to carry out acquisitions and further strengthen the company's market position as well as create continued value growth.
This information is information that Nivika Fastigheter AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out herein, at 08.30 CET on 25 January 2024.
For further information, please contact:
Niclas Bergman, CEO, phone 010-263 61 47, email: niclas@nivika.se
Kristina Karlsson, CFO & IR, phone 010-263 61 32, email; kristina@nivika.se
About Nivika
Nivika is a real estate company in Småland with focus on long-term ownership, property management and efficient new development to create profitable and sustainable value growth. The Company primarily operates in Jönköping, Värnamo, Växjö and the West coust of Sweden, areas with growth opportunities and stable rental markets. The diversified real estate portfolio amounts to app. SEK 11 billion, of which two-thirds of the rental value is of commercial real estate and 30 % residentials. Approximately 90 % of the portfolio is investment property. The commercial properties mainly consist of industrial, warehouse, office and community properties. www.nivika.se
