Magnolia Bostad Interim Report Jan–Mar 2023
Project margins are still under pressure due to increased construction costs, more expensive financing and higher yield requirements, which makes it difficult to start new projects. Q1's results were negatively affected by missing project sales, costs for cancelled projects and write-downs within the project portfolio.
Uncertainty remains both in the geopolitical situation and with macroeconomic development. We are now seeing a slowdown in the economy as a result of the powerful interest rate hikes and liquidity constraints the central banks have implemented in their attempts to overcome high inflation.
On the positive side, the review of fixed costs that we carried out in autumn 2022 is now starting to show an effect in the form of lower costs. Much also suggests that inflation is on the way down and that the central banks will therefore begin lowering their reference interest rates during the year. At the same time, the growing housing shortage means that the underlying need for newly produced housing in Sweden will be large in the coming years. We continue to work with the approximately 18,500 residential units available in our building rights portfolio and the roughly 9,000 units we have in production. We have many excellent projects underway and have great faith in the future, even if we are currently being held back by the market situation.
1 January – 31 March 2023
• Net sales amounted to SEK 57 m (91).
• The operating loss was SEK 107 m (-23) of which SEK -5 m (18) refers to changes in value of investment properties.
• The loss for the period before tax was SEK 173 m (-56) and the loss after tax amounted to SEK 175 m (-39).
• Earnings per share, after deductions for minority shares,was SEK -4.20 (-0.79).
Significant events 1 January–31 March 2023
• No significant events during the quarter.
Significant events after the end of the period
• No significant events after the end of the quarter.
For more information, please contact:
Johan Tengelin, CEO
[email protected]
Fredrik Westin, Deputy CEO & CFO
[email protected]
+46 72 720 00 06
This information is information that Magnolia Bostad is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2023-04-28 07:45 CEST.
About Magnolia Bostad
Magnolia Bostad AB, CIN 556797–7078, is a leading urban developer that develops new residential properties primarily rental apartments but also tenant-owned apartments, community service properties and hotels, in attractive locations in Sweden's growth areas and major cities. Housing is being developed both for sale and for self-management. Our work is based on a holistic approach where the operations are conducted in a way that promotes long-term, sustainable urban development. Magnolia Bostad is owned by HAM Nordic AB, which is jointly controlled by Holmströmgruppen and funds and entities that are managed and advised by Areim. More information is available at www.magnoliabostad.se