Other information

Significant events during the period

Peab reiterated its external targets at Capital Markets Day

In connection with Peab’s Capital Markets Day in February 2024 Peab communicated that the nine external targets adopted in 2021 are still relevant and therefore remain unchanged. The targets are both financial and non-financial and are categorized under the strategic targets; Most satisfied customers in the industry, Most profitable company in the industry, Best workplace in the industry and Leader in social responsibility in the industry. Peab’s President and CEO Jesper Göransson and the rest of Peab’s executive management presented an update on Peab’s business situation and strategic focus going forward. At the same time Peab also reported a potential level of orders received of about SEK 19 billion in total over the next two years due to more preliminary agreements, so-called phase 1 contracts, in construction contract operations.

Performance share program and transfer of own shares

The AGM on May 6, 2024 resolved to approve the Board’s proposal of Performance Share Program 2024 and transfer of a maximum of 2,785,324 B shares. The purpose of the Performance Share Program is to tie key employees’ rewards closer to the company’s long-term earnings and value development.

Green bond issue

On June 13, 2024 Peab issued bonds for a total value of SEK 1,500 million. The bonds mature in 3 respectively 4.5 years. With a maturity of 3 years SEK 900 million were issued with a variable interest rate of 3 months Stibor (the Stockholm Interbank Offered Rate) plus 2.30 percentage points. With a maturity of 4.5 years SEK 600 million were issued with a variable interest rate of 3 months Stibor plus 2.70 percentage points. Funds from the issue will be used to finance investments in green buildings, energy ECO efficient and circular products and production processes, clean transportation as well as water and pollution management. The green bonds were issued within the framework of Peab’s Swedish MTN program and the newly updated Green Finance Framework.

Peab acquired property and development rights in Malmö and divested partly owned investment property

On November 1, 2024 Peab acquired four investment properties in Varvstaden, Malmö with a net operating income of SEK 43 million for SEK 784 million and about 280,000 m2 of planned development rights for SEK 1,239 million. Also included is an ongoing development project, Hall 259 with 11,000 m2 leasable area and 550 parking spaces, which will be completed in 2027. Peab has developed homes and offices in Varvsstaden for several years and will continue to operate in the area for a long time to come.

Peab also acquired an investment property in the Kirseberg-Östervärn area in Malmö for SEK 68 million. A zoning plan process is underway intended to enable development of around 55,000 m2 building rights for both residential and office space in the area.

In conjunction with this Fastighets AB Centur divested the majority of its investment properties to the other co-owner Fastighets AB Balder for SEK 5,228 million. After this Centur will have a few remaining properties with a total booked value of about SEK 600 million. The deal had a positive effect on Peab’s profit of about SEK 400 million in the fourth quarter 2024, of which SEK 367 million in business area Project Development and SEK 33 million as a positive effect of eliminations.

The transactions entailed an increase in Peab’s net debt by around SEK 2 billion in the fourth quarter 2024 and a calculated decrease of SEK 1 billion in the first quarter 2025 when a dividend from Fastighets AB Centur will be distributed. All in all, net debt increased through the transactions over the years by around SEK 1 billion.

As a result of the transactions Peab divested partly owned, completed properties in the management phase and invested in development rights for future development as well as a number of completed properties in Varvsstaden.

Significant events after the period

No significant events occurred after the end of the reporting period.

Holdings of own shares

At the beginning of 2024 Peab’s holding of its own shares was 8,597,984 B shares which corresponds to 2.9 percent of the total number of shares. No changes have occurred during 2024.

Related parties

The character and extent of transactions with related parties is presented in the Annual and Sustainable Report 2023, note 41. For more information about transactions with related parties during the period see business area Project Development and the section above, Significant events during the period. No other new significant transactions have occurred during 2024.

Proposed dividend

The Board has pro­posed a div­i­dend of SEK 2.75 (1.50) per share for 2024 divided into two payments. Ex­clud­ing the 8,597,984 shares owned by Peab AB per Feb­ru­ary 6, 2025, which are not en­ti­tled to div­i­dends, the pro­posed div­i­dend is equiv­a­lent to a total div­i­dend dis­tri­b­u­tion of SEK 790 mil­lion (431). Cal­cu­lat­ed as a share of the Group’s re­port­ed prof­it for the year after tax ac­cord­ing to seg­ment re­port­ing, the pro­posed div­i­dend amounts to 38 per­cent (30). The pro­posed div­i­dend is equiv­a­lent to a di­rect re­turn of 3.4 per­cent based on the clos­ing price on Feb­ru­ary 5, 2025. The proposed record day for the first payment amounting to SEK 1.50 per share is May 8, 2025. The proposed record day for the second payment amounting to SEK 1.25 per share is October 28, 2025.

Annual General Meeting

The An­nu­al Gen­er­al Meet­ing of Peab will be held on May 6, 2025. The form of the An­nu­al Gen­er­al Meet­ing will be de­cid­ed by the Board at the lat­est in con­nec­tion with the no­tice to at­tend the An­nu­al Gen­er­al Meet­ing.

Nomination Committee

Ac­cord­ing to the “Prin­ci­ples for the Nom­i­na­tion Com­mit­tee’s ap­point­ment and in­struc­tions for the Nom­i­na­tion Com­mit­tee”, adopt­ed by the An­nu­al Gen­er­al Meet­ing on May 6, 2024, the Nom­i­na­tion Com­mit­tee is ap­point­ed by the three largest share­hold­ers of the com­pa­ny per the final bank­ing day in June 2024, i.e. June 28, 2024, that want to ap­point a mem­ber of the Nom­i­na­tion Com­mit­tee as well as the Chair­man of the Board. If one of the three largest share­hold­ers de­cline to ap­point a mem­ber of the Nom­i­na­tion Com­mit­tee, the right to appoint a member will be offered to the share­hold­er that, based on the number of allotted votes, is next in line. This process will continue until the Nom­i­na­tion Com­mit­tee con­sists of three mem­bers as well as the Chair­man of the Board. 

The two largest share­hold­ers per June 28, 2024, Ekha­ga Utveck­ling AB and AB Axel Granlund, have agreed to ap­point a mem­ber to Peab’s Nom­i­na­tion Com­mit­tee. Mats & Fredrik Paulsson with families, Peab’s Profit-​Sharing Foun­da­tion, Vanguard and Kamprad Family Foundation, which were in terms of votes the third to the sixth largest share­hold­ers in Peab, have when asked replied that they do not wish to ap­point a mem­ber to the Nom­i­na­tion Com­mit­tee for the An­nu­al Gen­er­al Meet­ing 2025. Handelsbanken Funds, which was the next largest share­hold­er, has agreed to par­tic­i­pate in the Nom­i­na­tion Com­mit­tee.

The Nom­i­na­tion Com­mit­tee for the Annual General Meeting 2025 there­fore con­sists of the fol­low­ing mem­bers:

  • Anders Sundström, Ekhaga Utveckling AB
  • Ulf Liljedahl, AB Axel Granlund
  • Suzanne Sandler, Handelsbanken Funds
  • Anders Runevad, Chairman of the Board of Peab AB

The Nom­i­na­tion Com­mit­tee has ap­point­ed Anders Sundström to be Chair­man of the Nom­i­na­tion Com­mit­tee.