Financial position and cash flow

Financial position

Total assets according to segment reporting per September 30, 2023 were SEK 46,911 million (43,191). Equity amounted to SEK 15,239 million (14,469), which means the equity/assets ratio was 32.5 percent (33.5).

Interest-bearing net debt amounted to SEK 10,173 million (5,886) on September 30, 2023. The increase in net debt refers to more tied up working capital mainly in business areas Project Development and Industry, and higher investments in machines and production facilities. Net debt includes project financing of the unsold part of our own housing developments as long as they are in production. The unsold part was SEK 2,918 million (1,768) and the increase is due to more capital tied up in unsold homes in ongoing production compared to the same period last year. Interest-bearing receivables amounted to SEK 2,655 million (1,407). 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 Other information. The average interest rate in the loan portfolio, including derivatives, was 5.5 percent (2.4) on September 30, 2023.

Group liquid funds according to IFRS, including unutilized credit facilities but excluding project financing, were SEK 5,325 million at the end of the period compared to SEK 7,640 million on December 31, 2022.

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 2,634 million at the end of the period compared to SEK 2,801 million on December 31, 2022. Surety for credit lines in tenant-​owner associations regarding the unsold part after deconsolidation made up SEK 128 million of contingent liabilities compared to SEK 97 million on December 31, 2022.

Investments and divestments

During the quarter tangible and intangible fixed assets were net invested for SEK 310 million (505). The investments mainly refer to investments in machines as well as construction of production facilities for concrete elements in business area Industry. During January-September 2023 tangible and intangible fixed assets were net invested for SEK 1,323 million (1,322).

Net investments in project and development properties, which are recognized as inventory items, totaled SEK 545 million (156) during the quarter. The investments mainly refer to development rights, construction of rental apartment projects as well as a more capital tied-up in unsold apartments in our own housing developments. Net investments in project and development properties, which are recognized as inventory items, totaled SEK 2,028 million (845) during January-September 2023.