Financial position and cash flow

Reclassication of property

After a revision of Peab’s property portfolio it was decided that some property previously reported as project and development property, i.e. inventory properties, will instead be classified as operations property or 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 recorded value of SEK 619 million have been reclassified as operations property and properties for a total value of SEK 629 million have been reclassified as investment property. The reclassification of these properties is forward-looking and therefore no comparable figures have been recalculated.

Financial position

The equity/assets ratio on 31 March 2017 was 32.5 percent compared to 29.7 percent at year-end. Interest-bearing net debt amounted to SEK 416 million compared to SEK 1,862 million at the end of 2016. The average interest rate in the loan portfolio, including derivatives, was 3.1 percent (2.6) on 31 March 2017.

Group liquid funds, including unutilized credit facilities, were SEK 6,314 million at the end of the period compared to SEK 6,062 million on 31 December 2016.

At the end of the period Group contingent liabilities, excluding joint and several liabilities in trading and limited partnerships, amounted to SEK 8,405 million compared to SEK 6,903 million on 31 December 2016. SEK 6,100 million (4,498) of contingent liabilities was surety given for credit lines for tenant-owned apartments under production.

Investments and divestments

During the period SEK 305 million (216) was net invested in tangible and intangible fixed assets.

Net divestments in project and development properties, which are recognized as inventory items, totaled SEK 285 million (net invested 174) during the period. Most of the divestments were properties sold in Ulriksdal.

Cash flow

Cash flow from current operations was SEK 1,571 million (862). The increase stems from less capital tied up in working capital. 

Cash flow from investment activities was SEK 217 million (48).

Cash flow before financing amounted to SEK 1,788 million compared to SEK 910 million for the same period last year, of which the transactions in Arenastaden were included by around SEK 835 million.

Cash flow from financing operations amounted to SEK -1,117 million (-1,312) and is due to amortization of borrowing debts.