Q&A from Conference call in Swedish Q3 2019
Niclas Höglund – Nordea Markets Equities
Regarding the commercial holding, can you see lower volume in renegotiations?
Is the letting market weaker in Gothenburg CBD?
The market feels very good. We see a strong market in the CBD area where we have our properties and have a lot of office space in our commercial holding.
What does the occupation look like in the Kallebäcks Terasser project?
What is the yield on cost in this project? What is the calculated rental level?Answer:
We have no agreements with future tenants, but we have discussions with potential future tenants. We don't mention rental levels on single projects.
You keep your yield requirement on 3.3% in the residential holding? I thought it was up a bit because of the completed apartments.
No, and the 3.3% is on average in the total residential holding.
Is it fare to say that the yield requirement is higher in a new construction?
No, not only based on if it is a new construction. It is depending on the location etc.
Regarding Umami, you still have it on the list of on-going project. Is it harder to let them out?
No, there is no problem finding tenants. The reason why it is still an on-going project is because we hava a gradually occupation and when it is totally completed it will not be on the list anymore.
Can you see any signs of increased turnover on the rental market, because you have a lot of new constructed apartments?
We have our own queue with 120,000 people. Our mission is to find the right tenant to the apartment. A tenant who really wants to live in that apartment and in that way decrease the turnover.
Will the co-op apartment construction be a bigger part in the future? And will you switch on-going rental apartments to co-ops instead?
We have one on-going co-op project right now, New York on Gärdet in Stockholm. We have to wait until it is completed to know what the market looks like then. We always do two calculations, one as a rental and the other one as a co-op to know that we can handle it as a rental.
You obtained a land allocation. Did you buy it?
No, it is a lease hold.
You mentioned that you have no rating. How do you think about that in the future
We have a good reputition on the market, much because what we have delivered during our 75 years' history. We want to stick to our strategies and not change them just becuase we don’t fit in a rating-model. That also means a flexible financing situation for us.
Do you have closer contact with the banks compared to your peers?
Do you see signs of increased financial expenses?
We always have close contact with the banks and we don´t see any signs of increased expenses.
Tobias Kaj – ABG Sundall Collier
You had a lot of starts in Q1, less in Q2 and zero in Q3. Will the on-going projects decrease more next quarter? Is the delay because of less demand or is it because of planning permission?
We are ready to start when the planning permission is ready and we will have som starts in Q4.
What is the rental level in Sturefors?
We are happy with the rental level and I don't give more information about a single project.
Albin Sandberg – Kepler Cheuvreux
Earlier you have mentioned that you wait for the building costs to go down. How does it look today?
We can't see any decrease yet, maybe some slowdown.