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 30 June 2017 was 29.3 percent compared to 29.7 percent at year-end. Interest-bearing net debt amounted to SEK 2,707 million compared to SEK 1,862 million at the end of 2016. Net debt has been affected by paid dividends in the second quarter, as well as increased investments in project and developement property and machines. The average interest rate in the loan portfolio, including derivatives, was 2.5 percent (2.3) on 30 June 2017.

Group liquid funds, including unutilized credit facilities, were SEK 4,033 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 8,356 million (6,286). SEK 6,273 million (3,874) of contingent liabilities was surety given for credit lines for tenant-owned apartments under production.

Investments and divestments

During the second quarter SEK 519 million (435) was net invested in tangible and intangible fixed assets. During the period January-June 2017 SEK 824 million (651) was net invested in tangible and intangible fixed assets.

Net investments in project and development properties, which are recognized as inventory items, totaled SEK 658 million (184) during the second quarter and primarily refer to the acquisition of development rights in Kvarnholmen in Nacka. During the second quarter 2016 properties worth SEK 184 million, consisting mainly of partial sales of property in Hyllie, were net divested. Net investments in project and development properties totaled SEK 373 million (net divestments of 10) during the period January-June 2017. During the first quarter property in Ulriksdal, Solna was divested.

Cash flow

April – June 2017

Cash flow from current operations during the second quarter was SEK -588 million (480). The negative cash flow was due to capital seasonally tied up in operations as well as the acquisition of development rights in Kvarnholmen, Nacka for about SEK 600 million.

Cash flow from investment activities was SEK -517 million (-474) and refers primarily to investments in machines.

Cash flow before financing during the second quarter amounted to SEK -1,105 million (6). The second quarter 2016 included the partial divestment of property in Hyllie for SEK 508 million.

Cash flow from financing operations during the second quarter amounted to SEK -361 million (-358) of which SEK 1,062 million (767) consisted of paid dividends.

January – June 2017

Cash flow from current operations was SEK 983 million (1,342).

Cash flow from investment activities was SEK -300 million (-426).

Cash flow before financing amounted to SEK 683 million compared to SEK 916 million for the same period last year. During the first quarter the transactions carried out regarding Arenastaden, Solna had a positive effect of around SEK 835 million. The comparable period included partial sales in Hyllie of SEK 508 million.

Cash flow from financing operations amounted to SEK -1,478 million (-1,670) of which SEK 1,062 million (767) consisted of paid dividends.