Rikshem's half-year report January - June 2023: High demand in a challenging property market

Jul 14, 2023 12:15 - Regulatory information

Rikshem increased its rental income by 8.6 percent. Net operating income was MSEK 920 (867), up 6.2 percent. Property investments in the period totaled MSEK 1,052 (1,249). At the end of the period, Moody's reaffirmed Rikshem's credit rating of A3 with stable outlook 

- Financing costs are now rising faster than both revenues and other expenses, leading to a decrease in operating income. However, our interest rate duration and debt duration remain reassuring, which means it will take time before higher interest rates fully take effect. Higher financing costs mean that we are postponing the start of new construction projects despite a strong demand for both our residential properties and properties for public use. Instead, we are focusing on the long-term management of our existing properties. "In this situation, we need to work even harder to strengthen the operating surplus," says Anette Frumerie, CEO of Rikshem. 

• Rental income was MSEK 1,706 (1,571) 

• For like-for-like portfolio, rental income increased by MSEK 89 or 6.5 percent 

• The net operating income amounted to MSEK 920 (867), an increase of 6.2 percent 

• Income from property management fell to MSEK 561 (628) 

• Profit before tax for the period was MSEK -2,047 (1,870) 

• The change in value of investment properties was MSEK -2,087 (176) or -3.5 (0.3) percent 

• The value of the property portfolio, including joint ventures, was MSEK 58,312 (59,423) 

• Total return, including joint ventures, for the rolling 12-month period totaled -4.0 procent (-0.4) 

Read the half-year report at rikshem.se or in the attached pdf.