January–December 2022
· Rental revenue increased to SEK 839 M (694) during the year. For like for like portfolio, rental revenue increased by 3.6 percent.
· Net operating income increased to SEK 423 M (355) during the year. For like for like portfolio, net operating income increased by 5.2 percent.
· The result before tax was SEK –1,983 M (4,089) during the year, of which:
– Income from property management is included in an amount of SEK 172 M (156), which corresponds to an increase of 10.2 percent.
– Change in property values is included in an amount of SEK –2,238 million (3,887).
– Change in the value of financial instruments is included in an amount of SEK 100 M (36).
· The result for the year amounted to SEK –1,355 M (3,226) after deferred tax of SEK 666 M (–851) and current tax of SEK –38 M (–12), corresponding to earnings per ordinary share of SEK –9.32 (23.34).
· Cash flow from operating activities before changes in working capital amounted to SEK 147 M (157).
· At year-end, the value of the property portfolio was SEK 15,295 M (17,173).
October-December 2022
· Rental revenue increased to SEK 204 M (193) during the quarter.
· Net operating income totaled SEK 93 M (100) during the quarter.
· The result before tax for the quarter was SEK –1,423 M (3,396), of which:
– Income from property management in included in an amount of SEK 11 M (23).
– Change in property values is included in an amount of SEK –1,419 M (3,334).
– Change in the value of financial instruments is included in an amount of SEK 5 M (17).
· The result for the quarter was SEK –841 M (2,703) after deferred tax of SEK 588 M (–707) and current tax of SEK –5 M (15), corresponding to earnings per ordinary share of SEK –5.78 (18.64).
· Cash flow from operating activities before changes in working capital amounted to SEK 23 M (34).
Significant events during the fourth quarter
· On November 10, 2022, the Amasten Board of Directors appointed Ylva Sarby Westman as the new Chief Executive Officer.
· On December 21, 2022, it was resolved at an Extraordinary General Meeting of Samhallsbyggnadsbolaget i Norden AB (publ) (“SBB”) that all of SBB’s shares in the subsidiary Amasten Fastighets AB (publ) would be distributed to the holders of Class A and Class B SBB shares. The record date was December 28, 2022.
· An Extraordinary General Meeting of Amasten Fastighets AB (publ) held on December 21, 2022 resolved on a change of name to Neobo Fastigheter AB (publ). A merger and split of the company´s ordinary shares was also resolved. Subsequently, the number of shares outstanding amounts to 145,400,737 ordinary shares.
· At the end of the fourth quarter, the company acquired properties from SBB at a value of SEK 5.2 billion and divested properties to SBB at a value of SEK 5.8 billion in order to create the property portfolio that Neobo has today. All acquisitions and sales occurred at market value and financial acquisition and withdrawal took place on December 30, 2022.
· At the end of the fourth quarter, Neobo entered into a loan agreement of SEK 5.4 billion in order to refinance existing external financing. In conjunction with this, the company acquired interest rate derivatives from SBB in a nominal amount of SEK 3.8 billion at a value of SEK 309.6 M.
Events after the end of the year
· Shares of Neobo were listed on the Nasdaq First North Premier Growth Market on February 10, 2023.
· In the beginning of the year, Neobo completed refinancing of existing external financing of SEK 2 billion.
·2023 is Neobo’s first year of operation as an independent company. The Board of Directors proposes to the Annual General Meeting that no dividend will be paid for the financial year 2022.
CEO STATEMENT
Strong financial position and good market conditions
There was a considerable amount of activity in the fourth quarter and it feels good to be able to present Neobo’s first year-end report as an independent, freestanding housing company listed on the Nasdaq First North Premier Growth Market.
Neobo’s current Group structure was created during the fourth quarter of 2022 and the company was spun off to SBB’s shareholders at year-end. The foundation of Neobo’s property portfolio was the properties that existed in Amasten Fastighets AB at September 30, 2022. At the end of December, properties valued at SEK 5.8 billion were sold to SBB and properties valued at SEK 5.2 billion were acquired from SBB in order to create the property portfolio that Neobo has today. At year-end, Neobo held properties valued at SEK 15.3 billion.
The 2022 results for Neobo are based on the property portfolio that existed in the Group at September 30, 2022. That said, rental revenue amounted to SEK 839 M, net operating income to SEK 423 M and income from property management to SEK 172 M for full-year 2022.
Strong financial position
We have devoted great effort to ensuring that Neobo has a strong financial position and a stable capital structure based solely on bank financing. As of February 2023, we have a low loan-to-value ratio of 48 percent, an average loan-to-maturity period of 4.2 years, a high interest hedging ratio of 74 percent, an average fixed rate period of 1.8 years and an average interest rate of 2.7 percent, which feels very assuring in today’s financial market.
Committed employees
Another prioritized aim has been to build an efficient organization and I am extremely proud to state that, since year-end, we have both a property management organization and a management team in place that are committed to the further development of Neobo.
The property management organization comes from SBB and has long-standing experience of our property portfolio and has maintained a close dialogue with our tenants, which is a prerequisite for active and value-generating property management. I have also recruited a management team with considerable drive and extensive experience of the property and stock markets.
Favorable market conditions
Neobo is active in municipalities with a population growth that slightly exceeds the national average and with a good rate of employment. Most of the municipalities also state that they are experiencing a housing shortage. This factor, together with a low rate of new production of residential properties, creates favorable market conditions for Neobo and we will devote great effort to reducing our vacancies during the current year. Rent negotiations are currently under way for 2023 and, although we will not secure compensation for the entire rate of inflation during the current year, we note that rents for residential properties in Sweden have historically increased more than inflation.
I am looking forward to leading and developing Neobo as a freestanding listed company. With our dedicated employees and financial strength, we have the best prerequisites in the prevailing market situation for adding value to the property portfolio and generating value for our tenants and owners.
Stockholm, February 23, 2023
Ylva Sarby Westman, CEO