Financial position and cash flow

Financial position

Total assets according to segment reporting per September 30, 2024 were SEK 45,677 million (46,911). Equity amounted to SEK 15,650 million (15,239), which means the equity/assets ratio was 34.3 percent (32.5).

Interest-bearing net debt amounted to SEK 8,439 million (10,173) per September 30, 2024. The decrease in net debt is due to less tied up working capital and lower investments in business area Industry. Net debt includes project financing of the unsold part of our own housing developments while they are in production. The unsold part was SEK 2,042 million (2,918). Interest-bearing receivables amounted to SEK 2,604 million (2,655). The amount includes a capital claim of SEK 1,067 million (1,067) on Unibail-Rodamco-Westfield according to the arbitration decision announced on June 30, 2023. For details regarding the arbitration decision, see the section Risks and uncertainty factors and Annual and Sustainability Report 2023. The average interest rate in the loan portfolio, including derivatives, was 5.6 percent (5.5) on September 30, 2024.

Group liquid funds according to IFRS, including unutilized credit facilities but excluding project financing, were SEK 6,712 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 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 2,459 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 464 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 78 million (310). During January-September 2024 tangible and intangible fixed assets were net invested for SEK 522 million (1,323). The investments mainly refer to investments in machines in business area Industry. The comparable period also includes investments in construction of production facilities for prefab operations in business area Industry.

Net divestments in project and development properties, which are recognized as inventory items, totaled SEK 227 million (net investments of SEK 545 million) during the quarter. Among other things, two rental apartment projects were divested in the third quarter. Net investments in project and development properties were SEK 704 million (2,028) during the period January-September 2024. The investments mainly refer to the acquisition of building rights in Nacka through the acquisition of Sickalön Bygg Invest AB in the first quarter.

Cash flow

Cash flow from current operations improved and amounted to SEK 1,200 million (678) in the third quarter, of which cash flow from changes in working capital was SEK -347 million (-88). The improved cash flow is mainly related to the business areas Industry and Project Development.

Cash flow from investment activities was SEK -5 million (-228). The improved cash flow is explained by less investment in machines in business area Industry and repayment of interest-bearing receivables in business area Project Development.

Cash flow before financing improved to SEK 1,195 million (450).

Cash flow from financing operations amounted to SEK -1,837 million (-809).

January – September 2024

Cash flow from current operations amounted to SEK 388 million (-1,909) during the period, of which cash flow from changes in working capital was SEK -1,467 million (-3,093). The improved cash flow is mainly related to business areas Industry and Project Development.

Cash flow from investment activities was SEK 494 million (-870). Cash flow has been positively affected by the sale of the shares in the partly owned company Tornet Bostadsproduktion in business area Project Development. During the period the level of investment in machines in business area Industry has been lower than compared to the same period last year.

Cash flow before financing amounted to SEK 882 million (-2,779).

Cash flow from financing operations amounted to SEK -1,284 million (2,276). During the period dividends of SEK -431 million (-1,150) were paid to shareholders. Repayment of loans amounted to SEK -855 million. During the corresponding period last year, loans of SEK 3,426 million were taken out.