Financial position and cash flow

Financial position

Total assets according to segment reporting per December 31, 2024 were SEK 45,226 million (44,295). Equity amounted to SEK 16,760 million (15,082), which means the equity/assets ratio was 37.1 percent (34.0).

Interest-bearing net debt amounted to SEK 9,118 million (8,676) per December 31, 2024. During the fourth quarter a number of properties in Varvsstaden, Malmö were acquired from the joint venture company Fastighets AB Centur. All in all the transactions resulted in an increase in net debt of approximately SEK 2,000 million. During the first quarter of 2025, net debt is expected to decrease by SEK 1 billion as a dividend will be distributed by Fastighets AB Centur. During the year improved earnings and lower investments in business area Industry had a positive effect on net debt. Net debt includes project financing of the unsold part of our own housing developments while they are in production. The unsold part was SEK 2,237 million (2,685). Interest-bearing receivables amounted to SEK 1,643 million (2,638). 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, see the section Risks and uncertainty factors and the Annual and Sustainability Report 2023. The average interest rate in the loan portfolio, including derivatives, was 5.1 percent (5.7) on December 31, 2024.

Group liquid funds according to IFRS, including unutilized credit facilities but excluding project financing, were SEK 8,822 million at the end of the year 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 2,179 million at the end of the year 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 508 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 242 million (165). During 2024 tangible and intangible fixed assets were net invested for SEK 764 million (1,488). The investments mainly refer to investments in machines in business area Industry. Last year included investments in the construction of production facilities for prefab operations in business area Industry as well.

Net investments in project and development properties, which are recognized as inventory items, totaled SEK 1,767 million (net divestments SEK 420 million) during the quarter. Net investments in project and development properties during 2024 were SEK 2,471 million (1,608) . The investments included acquisition of building rights in Nacka through the acquisition of Sickalön Bygg Invest AB in the first quarter. During the fourth quarter investment property and development property in Varvsstaden, Malmö worth approximately SEK 2,000 million were acquired.

Cash flow

Cash flow from current operations was SEK 968 million (1,853) in the fourth quarter, of which cash flow from changes in working capital was SEK -150 million (736). The reduced cash flow is mainly related to business area Project Development where properties in Varvsstaden, Malmö have been acquired.

Cash flow from investment activities was SEK 751 million (-391). 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 1,719 million (1,462).

Cash flow from financing operations amounted to SEK -1,091 million (-1,225).

January – December 2024

Cash flow from current operations during the year amounted to SEK 1,356 million (-56), of which cash flow from changes in working capital was SEK -1,617 million (-2,357). The improved cash flow is linked to business areas Industry and Project Development. In business area Project Development cash flow from changes in working capital has been affected by the acquisition of development rights in, among other places, Kvarnholmen, Nacka and the acquisition of properties in Varvsstaden in Malmö.

Cash flow from investment activities was SEK 1,245 million (-1,261). Cash flow has been positively affected by the divestiture of the shares in the joint venture company Tornet Bostadsproduktion in business area Project Development and by repayment of interest-bearing receivables from joint venture companies. During the year the level of investment in machines in business area Industry has been lower than compared to the last year.

Cash flow before financing improved to SEK 2,601 million (-1,317).

Cash flow from financing operations amounted to SEK -2,375 million (1,051). During the year dividends of SEK -431 million (-1,150) were paid to shareholders. Repayment of loans amounted to SEK -1,946 million. Last year loans of SEK 2,201 million were taken out.