Full-year 2021
- Rental income amounted to SEK 319.9m (231.1), an increase of 38%.
- Net operating income amounted to SEK 235.3m (177.4), an increase of 33%.
- Income from property management increased 63% to SEK 99.2m (60.8), of which income from property management attributable to ordinary shareholders was SEK 39.2m (18.8), corresponding to SEK 0.98 (0.53) per ordinary share.
- Net income after tax amounted to SEK 611.0m (418.0), corresponding to SEK 13.66 (10.69) per ordinary share.
- Long-term net asset value attributable to ordinary shareholders increased 38% to SEK 3,274.7m (2,364.6), corresponding to SEK 78.01 (59.75) per ordinary share.
- The Board proposes a resolution to the AGM that no dividend be paid on ordinary shares for the 2021 financial year.
October–December 2021 quarter
- Rental income amounted to SEK 94.7m (62.8), an increase of 51%.
- Net operating income amounted to SEK 64.7m (47.2), an increase of 37%.
- Income from property management increased 208% to SEK 33.3m (10.8), of which income from property management attributable to ordinary shareholders was SEK 21.3m (0.3), corresponding to SEK 0.51 (0.01) per ordinary share.
- Net income after tax amounted to SEK 262.6m (108.2), corresponding to SEK 5.92 (2.47) per ordinary share.
Events during and after the end of the quarter
- In October, Genova issued subsequent senior unsecured green bonds in the amount of SEK 100m due 9 September 2024 under the existing framework of SEK 750m which has now been fully utilised.
- In October, Genova announced that almost 7,000 sqm had been let in the Söderhällby 1:9 property in Uppsala with an annual rental value of approximately SEK 8.3m. The property was acquired in May 2021 as a project property totalling approximately 14,000 sqm of lettable area for warehouse and logistics. Since the acquisition, Genova has successfully completed a number of strategic lettings.
- In October, Genova announced that the company is taking a comprehensive approach to the planned development of a new district in Skarpnäck. Genova already owns two properties in Skarpnäck and has now signed a strategically important land-use agreement with the City of Stockholm to expand the building right. Genova is planning to build almost 500 residential units in the area and the future expected building right, after the land-use agreement, amounts to a gross lighted floor area of 42,000 sqm.
- At the end of October, the acquired shares in Järngrinden were accessed.
- In November, Genova signed an option agreement with Uppsala Municipality related to land allocation for future development after winning a tender competition together with Coop Butiker och Stormarknader. The agreement pertains to the development of housing, a grocery store and city premises in a new district square south of Gunsta, where Uppsala Municipality is planning to develop the land with approximately 1,500 homes. The land will be allocated when the zoning plan becomes final, which is expected to take place in 2022.
- On 1 December, the Executive Management Team was strengthened with Anna-Karin Malmqvist as Head of Housing Management. As Head of Genova’s Housing Management, Anna-Karin will make a valuable contribution to Genova’s housing growth with a focus on developing modern, efficient and customer-oriented housing management.
- In December, Genova entered into a joint venture with Green Group to take a unified approach to the entrance to Åkersberga Centrum. The joint venture owns properties with an underlying property value of SEK 58.5m and a total lot size of more than 14,000 sqm in a future conversion area that the municipality has designated as a potential main thoroughfare in a densely built-up area.
- In January, Genova let and extended rental agreements for 9,600 sqm with an average duration of more than seven years in Lund, Uppsala, Nacka and Gävle. The total rental value for the entire duration of all rental agreements was approximately SEK 110m, and Genova’s investment commitment totalled approximately SEK 8.9m.
- In February, Genova completed a combined transaction with ADR Fastigheter where Genova divested the Veddesta 5:12 property in Järfälla containing a long stay hotel at an underlying property value of SEK 214.5m and acquired a portfolio of properties in Greater Stockholm, Nyköping and Hallstahammar at an underlying property value. about SEK 104m. Closing took place on 18 February 2022.
CEO’S STATEMENT
Genova works long-term and purposefully to create value in our own way: by combining stable cash flows from investment properties with cost-efficient project development of mainly residential and community service properties. Our strong performance in 2021 once again shows the strength of Genova’s business model. We delivered high growth with good profitability, increased production while maintaining a stable financial position, and also improved our sustainability performance.
I feel both gratified and proud of what we achieved in 2021, a record year in terms of both investment level and production rate. Genova delivered strong performance that was well above our financial targets. Income from property management rose 63% to SEK 99.2m, an increase of 60% in income from property management per share, while growth in net asset value per share amounted to 31%. At the same time, Genova is entering 2022 with a stable financial position.
During the year, we invested nearly SEK 2 billion in investment properties in our core markets of Greater Stockholm and the Uppsala Region, and in other growth areas such as Lund. These are mainly properties with stable tenants and long-term rental agreements in strategic locations. We are thereby adding both good cash flows, and opportunities to create building rights and future value creation. We also broadened our operations geographically during the year. By acquiring 50% of the property and project development company Järngrinden at the end of the year, we made a strategic move into western Sweden. Järngrinden is a company that we appreciate for both its experienced organisation and a strong property and project portfolio.
Genova has a substantial number of projects under way in various phases, from ongoing construction in Norrtälje, Knivsta, Enköping and Uppsala, to planning for the creation of new zoning plans for project development. During the year, we significantly increased our production rate and at year-end, had approximately 60,000 sqm in ongoing production. With Genova’s total project portfolio, we are ensuring strong and long-term organic growth. Up until 2028, we are planning to invest approximately SEK 12 billion in the construction of properties for our own long-term management, which are expected to total approximately SEK 15 billion with an estimated rental value of approximately SEK 700m when they are completed. This is what we are aiming for, and working to achieve step by step.
A typical example of Genova’s long-term value creation is our work with the Viby project in Upplands-Bro. Genova acquired the Viby property in 2014 and has since been working methodically to create the conditions for a completely new district with a mix of housing, services, schools and green areas. At the end of 2021, a new zoning plan was approved for the property, entailing that we, together with K2A which owns 30%, can commence construction later this year. We think it’s fantastic that Genova’s urban development team, in close collaboration with municipal employees and politicians, residents and local businesses, has been able to create opportunities to convert this site from a large parking lot with older retail premises into a vibrant and sustainable district that connects surrounding residential areas. It is an example of sustainable construction and value creation for all parties involved.
Long-term urban development, and building and managing for tomorrow’s climate and environment are key elements of Genova’s sustainability strategy, which was established by the Board in 2021. We have therefore taken a more structured approach to our sustainability initiatives and stepped up our efforts to identify and implement the measures that can make the most effective contribution to reduced emissions and a sustainable business operation. This also enabled us to raise green finance during the year.
As we now enter 2022, with some uncertainty in the market, we can feel secure in the knowledge that Genova’s business model is based on investment properties that generate good cash flows. With Genova’s current stability and size, we see good conditions for financing moving forward and we are working actively to reduce our lending costs in various ways. We will continue to take advantage of good business opportunities and strive to further accelerate our production rate and urban development. And we will continue our long-term and determined work to create value.
Michael Moschewitz, CEO
For further information, please contact:
CEO, Michael Moschewitz, mobile +46 (0)70-713 69 39, michael.moschewitz@genova.se
About Genova
Genova Property Group AB (publ) is a modern property company with a personal touch that owns, manages and develops properties with focus on Greater Stockholm area and Uppsala Region. On 31 December 2021, the value of the company’s property portfolio amounted to approximately SEK 8.0 billion with a lettable area of approximately 267,000 sqm and the company held approximately 7,000 building rights for residential units. Genova’s ordinary shares have been listed on Nasdaq Stockholm since June 2020.
This information is such information that Genova Property Group AB (publ) is obligated to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, on 23 February 2022 at 8.00 a.m. CET.
Genova – Smålandsgatan 12 – SE-111 46 Stockholm – www.genova.se