Financial position and cash flow

Financial position

Total assets per June 30, 2021 were SEK 37,685 million (41,244). Equity amounted to SEK 12,654 million (12,852) which means the equity/assets ratio was 33.6 percent compared to 31.2 percent at the end of the corresponding period last year.

Interest-bearing net debt at the end of June 2021 amounted to SEK 5,424 million (6,614). Net debt includes the unsold part of our own housing development projects as long as they are in production. The unsold part was SEK 968 million (1,702) and the reduction is due to a higher proportion of sold homes. During the second quarter SEK 1,327 million (-) in paid dividends affected net debt. The acquisition of paving and mineral aggregates operations in business area Industry on April 1, 2020 Peab increased net debt by SEK 3,125 million at the time of the acquisition. During last year interest-​bearing receivables of SEK 785 million from Annehem Fastigheter were included, which reduced net debt in segment reporting. The average interest rate in the loan portfolio, including derivatives, was 1.4 percent (1.4) on June 30, 2021.

Group liquid funds according to IFRS, including unutilized credit facilities but excluding project financing, were SEK 7,060 million at the end of the period compared to SEK 8,822 million on December 31, 2020.

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 3,361 million at the end of the period compared to SEK 3,439 million on December 31, 2020. Surety for credit lines in tenant-​owner associations regarding the unsold part after deconsolidation made up SEK 17 million of contingent liabilities compared to SEK 238 million on December 31, 2020.

Investments and divestments

During the quarter tangible and intangible fixed assets and investment property were net invested for SEK 127 million (188). The investments refer primarily to investments in machines. During the period January-June tangible and intangible fixed assets and investment property were net invested for SEK 608 million (379). The investments refer primarily to investments in machines.

Net investments in project and development properties, which are recognized as inventory items, totaled SEK 16 million (net divestitures SEK 907 million) during the quarter. Net investments in project and development properties totaled SEK 189 million (net divestitures SEK 1,424 million) during the period January-June. Project and development properties include the unsold part of our own ongoing housing development projects. Net divestitures in the comparable period are explained by the fact that more homes were sold and turned over than production started.