Note 18 Investment property
| Group 2018‚ MSEK | Investment property | Construction in progress | Total | |
| Koncernen 2018. Mkr | Förvaltningsfastigheter | Pågående nyanläggningar | Totalt | |
| Opening acquisition value | Ingående anskaffningsvärde | 819 | 117 | 936 |
| Purchases | Inköp | 59 | 190 | 249 |
| Sales/disposals | Försäljningar och utrangeringar | -588 | -16 | -604 |
| Reclassification | Omklassificering | 90 | -31 | 59 |
| Closing accumulated acquisition value | Utgående ackumulerade anskaffningsvärden | 380 | 260 | 640 |
| Opening depreciation | Ingående avskrivningar | -55 | – | -55 |
| Sales/disposals | Försäljningar och utrangeringar | 24 | 24 | |
| Depreciation | Avskrivningar | -20 | -20 | |
| Reclassification | Omklassificering | 10 | 10 | |
| Closing accumulated depreciation | Utgående ackumulerade avskrivningar | -41 | – | -41 |
| Opening write-downs | Ingående nedskrivningar | -10 | – | -10 |
| Sales/disposals | Försäljningar och utrangeringar | 10 | 10 | |
| Reclassification | Omklassificering | -10 | -10 | |
| Closing accumulated write-downs | Utgående ackumulerade nedskrivningar | -10 | – | -10 |
| Closing recognized value | Utgående redovisat värde | 329 | 260 | 589 |
| Group 2017‚ MSEK | Investment property | Construction in progress | Total | |
| Koncernen 2017. Mkr | Förvaltningsfastigheter | Pågående nyanläggningar | Totalt | |
| Opening acquisition value | Ingående anskaffningsvärde | – | – | – |
| Reclassification | Omklassificering | 671 | 671 | |
| Purchases | Inköp | 148 | 117 | 265 |
| Closing accumulated acquisition value | Utgående ackumulerade anskaffningsvärden | 819 | 117 | 936 |
| Opening depreciation | Ingående avskrivningar | – | – | – |
| Reclassification | Omklassificering | -42 | -42 | |
| Depreciation | Avskrivningar | -13 | -13 | |
| Closing accumulated depreciation | Utgående ackumulerade avskrivningar | -55 | – | -55 |
| Opening write-downs | Ingående nedskrivningar | – | – | – |
| Write-downs 1) | Nedskrivningar 1) | -10 | -10 | |
| Closing accumulated write-downs | Utgående ackumulerade nedskrivningar | -10 | – | -10 |
| Closing recognized value | Utgående redovisat värde | 754 | 117 | 871 |
After a revision of Peab’s property portfolio it was decided that some property previously recognized as project and development property, i.e. inventory properties, will instead be classified as investment property, in the case where there is no plan to divest the property and it is expected to remain in the Group for the foreseeable future. For this reason, as of 1 January 2017 properties for a total value of SEK 629 million have been reclassified as investment property.
1) Write-downs are recognized in the following line of the income statement:
| MSEK | 2018 | 2017 | |
| Mkr | 2018 | 2017 | |
| Production costs | Kostnader för produktion | – | -10 |
| Total | Summa | – | -10 |
Loan interest of SEK 4 million (5) has been activated during the year.
Accumulated fair value
At year-end fair value amounted to SEK 707 million compared to the recognized value of SEK 589 million. At year-end 2017 fair value amounted to SEK 918 million compared to the recognized value of SEK 871 million.
Valuing technique, hierarchy and significant unobservable inputs
The valuation of the above fair values are classified on level 3 in the fair value hierarchy. The valuation is built on an internal valuation model. As a complement to this valuation annual external market valuations are obtained for a number of objects. Fair value has been determined through a combination of applying the location/price method, based on recognized comparable purchases and the yield method.
Effect on profit/loss for the year
| Group, MSEK | 2018 | 2017 | |
| Koncernen, Mkr | 2018 | 2017 | |
| Rental revenue | Hyresintäkter | 53 | 65 |
| Direct costs for investment property that generated rent during the year (operational and maintenance costs, property tax and ground rent) | Direkta kostnader för förvaltningsfastigheter som genererat hyresintäkter under perioden (drift- och underhållskostnader, fastighetsskatt och tomträttsavgäld) | -21 | -28 |
| Direct costs for investment property that did not generate rent during the year (operational and maintenance costs, property tax and ground rent) | Direkta kostnader för förvaltningsfastigheter som inte genererat hyresintäkter under perioden (drift- och underhållskostnader, fastighetsskatt och tomträttsavgäld) | -4 | -4 |