Financial position and cash flow

Financial position

Total assets according to segment reporting per March 31, 2024 were SEK 43,949 million (42,713). Equity amounted to SEK 14,976 million (14,687), which means the equity/assets ratio was 34.1 percent (34.4).

Interest-bearing net debt amounted to SEK 9,139 million (7,984) per March 31, 2024. The increase in net debt refers to more tied up working capital mainly in business area Project Development. Net debt includes project financing of the unsold part of our own housing developments while they are in production. The unsold part was SEK 2,649 million (2,612). Interest-bearing receivables amounted to SEK 2,583 million (1,532). The increase is primarily due to a capital claim of SEK 1,067 million on Unibail Rodamco Westfield according to the arbitration decision announced on June 30, 2023. For details regarding the arbitration decision, see Annual and Sustainability Report 2023. The average interest rate in the loan portfolio, including derivatives, was 5.8 percent (4.2) on March 31, 2024.

Group liquid funds according to IFRS, including unutilized credit facilities but excluding project financing, were SEK 5,751 million at the end of the period compared to SEK 6,410 million on December 31, 2023.

As a consequence of Peab consolidating Swedish tenant-​owner associations per January 1, 2020 according to IFRS, surety for tenant-​owner associations under production is not reported. When homebuyers take possession of their apartments and the tenant-​owner association is no longer consolidated in Peab’s accounts, Peab then reports the part of surety that covers unsold homes. Peab has a guarantee obligation to acquire unsold homes six months after completion. Group contingent liabilities, excluding joint and several liabilities in trading and limited partnerships, amounted to SEK 2,395 million at the end of the period compared to SEK 2,428 million on December 31, 2023. Surety for credit lines in tenant-​owner associations regarding the unsold part after deconsolidation made up SEK 335 million of contingent liabilities compared to SEK 328 million on December 31, 2023.

Investments and divestments

During the quarter tangible and intangible fixed assets were net invested for SEK 336 million (390). The investments mainly refer to investments in machines in business area Industry.

Net investments in project and development properties, which are recognized as inventory items, totaled SEK 886 million (694) during the quarter. The investments mainly refer to the acquisition of building rights in Nacka through the acquisition of Sickalön Bygg Invest AB.

Cash flow

Cash flow from current operations amounted to SEK -874 million (-701) in the first quarter. Cash flow included higher interest costs. Cash flow from changes in working capital was SEK -388 million (-553) and the negative cash flow was primarily generated in business area Project Development through the acquisition of building rights.

Cash flow from investment activities was SEK 656 million (-207). Cash flow has been positively affected by the sale of the shares in the partly owned company Tornet Bostadsproduktion in business area Project Development. Cash flow has been charged by investments in machines and vehicles in business area Industry.

Cash flow before financing amounted to SEK -218 million (-908).