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Investing.com -- Wihlborgs Fastigheter AB (ST:WIHL) on Monday reported higher first-quarter profit and stronger property management income, driven by stable rental income and lower operating costs.
Net profit rose to SEK 431 million in the first quarter, up from SEK 348 million a year earlier.. Earnings per share increased to SEK 1.40 from SEK 1.13.
Income from property management climbed 9% to SEK 463 million, compared with SEK 424 million in the same period last year.
Rental income increased slightly to SEK 1,045 million from SEK 1,040 million, despite nonrecurring termination fees of SEK 21 million boosting last year’s figure.
The operating surplus rose to SEK 731 million from SEK 718 million, lifting the surplus ratio to 70% from 69% a year earlier. Property expenses fell to SEK 314 million, helped by reduced electricity costs.
Pre-tax profit reached SEK 570 million, compared with SEK 468 million in the same quarter last year. Changes in property values contributed SEK 69 million, while changes in derivatives added SEK 38 million.
The occupancy rate for investment properties, excluding projects and land, stood at 90%, compared with 91% at the end of the first quarter last year.
Net lettings remained positive at SEK 35 million for the quarter, marking Wihlborgs’ 40th consecutive quarter of positive net leasing.
"Our good cash flow means that we expect the loan-to-value ratio to decline in the following quarters," Chief executive Ulrika Hallengren said in a statement.
The loan-to-value ratio stood at 49.5% at the end of the period, down from 50.9% a year earlier. The equity-to-assets ratio remained unchanged at 38.8%.
Wihlborgs invested SEK 638 million during the quarter in ongoing projects. After the end of the period, the company completed the acquisition of eight properties from Granitor in Malmö, Lund and Helsingborg, valued at SEK 2,425 million.
The book value of Wihlborgs’ property portfolio was SEK 59.1 billion at the end of March. EPRA NRV per share increased 9% over the past 12 months to SEK 95.08, adjusted for a dividend of SEK 3.15 per share.
The average interest rate, including costs for credit agreements, remained unchanged at 3.45%. Net interest expense improved to SEK 253 million, compared with SEK 272 million last year.
Hallengren said Wihlborgs is continuing to focus on "adapt and constantly improve different parts of operations" in response to a rapidly changing market environment.