Br ino va – A nnual r epor t 2007
Printing: Holmbergs i Malmö AB www.rhr.se
A N N U A L R E P O R T 2 0 0 7
Financial Equity ratio, %
Shareholders’ equity, including minority interests, as a percentage of the balance-sheet total.
Interest-coverage ratio, times
Profit after financial income and expense with adding-back of financial expense in relation to financial expense.
Debt/equity ratio, times
Interest-bearing liabilities in relation to shareholders’ equity at the end of the period under review.
Return on total capital, %
Profit after financial items, with a supplement for financial ex- pense, as a percentage of the average balance-sheet total.
Return on shareholders’ equity, %
Profit for the period under review as a percentage of average share- holders’ equity.
Capital employed, SEK m
Balance-sheet total at the end of the period under review, less non-interest-bearing liabilities and provisions.
Average interest on interest-bearing liabilities, %
Estimated interest expense on an annual basis at the end of the period under review, as a percentage of interest-bearing liabilities.
Share-related Number of shares
Average number of outstanding shares during a particular period.
Shareholders’ equity per share, SEK
Shareholders’ equity in relation to the number of shares at year- end.
Earnings per share, SEK
Profit for the period under review in relation to the average num- ber of shares.
Cash flow per share, SEK
Cash flow for the period under review in relation to the average number of shares.
Dividend per share, SEK
Actual dividend for the financial year in relation to the average number of shares at year-end.
P/E ratio
Share price at year-end in relation to earnings per share for the period under review.
Definitions Notice convening
the Annual General Meeting
Brinova today Under tab
Brinova 2007 1
Chief Executive Officer’s Review 2-5
Business model 6-9
Operations in 2007 10-13
Proprietary projects 2003-2007 14
Business area presentation 16-17
Proprietary projects 2003-2007, cont. 19 Customer cooperation – Interlink 20
Shareholdings business area 21
Presentation of Shareholding 22-23
Valuation and financing 24-26
Market players 27
Logistics market 28-29
Property market 30-31
Employees and the environment 32-33
Risk management 34-39
The Brinova share 40-41
Corporate governance 42-44
Board of Directors’ Report 45-48
Financial statements 49
Group
Consolidated income statement 50
Consolidated balance sheet 51
Consolidated changes in shareholders’ equity 52 Consolidated cash-flow statement 53 Parent Company
Income statement 54
Balance sheet 55
Changes in shareholders’ equity 56
Cash-flow statement 57
Notes 58-83
Appropriation of profits and signatures 84
Auditor’s Report 85
Company management 86
Board of Directors 87
Six-year summary 88
Summary of property portfolio Under tab
Property list Under tab
Definitions On tab
Contents
Property-related
Vacancy ratio for floor space, %
Vacant floor space as a percentage of lettable area at the end of the period under review.
Yield, %
Net operating income, excluding property administration, as a percentage of the properties’ book value at the end of the period under review at the end of the period under review.
Gearing ratio, %
Interest-bearing liabilities with respect to properties as a percent- age of book value of properties at the end of the period under review.
Lettable area
The total area that is available for letting.
Rental value, SEK m
Closing rent on an annual basis, with a supplement for assessed market rent for vacant floor space.
Net operating income, SEK m
R ental income less operating and maintenance costs, property tax, ground rent and property administration.
Economic vacancy ratio, %
Assessed market rent for unlet floor space as a percentage of rental value.
Economic letting ratio, %
Contractual rent for current tenancy agreements at the end of the period under review as a percentage of rental value.
Surplus ratio, %
Net operating income as a percentage of rental income or contrac- tual rental income.
Time and place
The Annual General Meeting of Brinova Fastigheter AB (publ) will be held on Thursday, 24 April 2008 at 3:00 p.m. at Sundspärlan, Fältarpsvägen in Helsingborg, Sweden.
Right to attend
To be entitled to participate in the Meeting, share- holders must be registered in the shareholders’
register maintained by the Swedish Central Secu- rities Depository, NCSD/VPC AB, not later than Friday, 18 April 2008. Shareholders whose shares are nominee-registered must temporarily register the shares in their own name not later than this date. Such registration should be requested from the party managing the shares well in advance of the Meeting.
Notification of attendance
A notification of the intent to participate in the Annual General Meeting must be made by e-mail to anmalan@brinova.se not later than 2:00 p.m.
Friday, 18 April 2008. Notification may also be made by phone on +46-42-449 22 00, by fax on +46-42-449 22 99, or by mail to Brinova Fastig- heter AB, Verkstadsgatan 13, SE-252 27 Helsing- borg, Sweden. In the notification, the shareholder shall provide his/her name, personal ID number/
corporate registration number, address, phone number, potential assistants and number of sha- res. If participation is by proxy, the registration certificate or another document of authorisation should be submitted well in advance of the Meet- ing to Brinova Fastigheter AB.
Dividend
The Board of Directors proposes a regular divi- dend of SEK 5.00 per share and an extra dividend of SEK 1.50. The date of reconciliation for the di- vidends is proposed to be 29 April 2008. Should the Annual General Meeting pass a resolution in agreement with the proposal, the dividends are anticipated to be disbursed from VPC on Monday, 5 May 2008.
A complete convening notice will be publis- hed at the beginning of April.
Brinova Fastigheter AB is a modern, customer-oriented and successful property company that generates value by developing its own strategically located proprietary logistics properties, commercial properties, housing and
investments in other property companies.
Investor relations
Anders Silverbåge, President and CEO.
Tel. +46-42-449 22 22. Mobile +46-730-70 22 22.
anders.silverbage@brinova.se.
Peter Andersson, CFO.
Tel. +46-41-449 22 44. Mobile +46-730-70 22 44.
peter.andersson@brinova.se.
Jonas Hallström, IR/Marketing Coordinator.
Tel. +46-42-449 22 43. Mobile +46-730-70 22 43.
jonas.hallstrom@brinova.se.
This symbol indicates that more or updated information is available at www.brinova.se, where an interactive Annual Report is also published.
WWW
Head office:
Brinova Fastigheter AB (publ).
Verkstadsgatan 13, SE-252 27 Helsingborg, Sweden.
Tel: +46-42-449 22 00, Fax: +46-42-449 22 99.
Branch offices:
Brinova Fastigheter AB.
Regeringsgatan 67, SE-111 56 Stockholm, Sweden.
Tel: +46-8-508 90 670, Fax. +46-8-730 27 60.
Brinova Fastigheter AB.
Löjtnant Granlunds Väg, SE-281 52 Hässleholm, Sweden.
Tel: +46-451-490 60, Fax: +46-451-490 67.
Brinova Fastigheter AB.
J A Pripps gata 2, SE-421 32 Västra Frölunda, Sweden.
Tel: +46-31-334 46 50, Fax: +46-31- 334 46 59.
A modern
property company
Br ino va – A nnual r epor t 2007
Printing: Holmbergs i Malmö AB www.rhr.se
A N N U A L R E P O R T 2 0 0 7
Financial Equity ratio, %
Shareholders’ equity, including minority interests, as a percentage of the balance-sheet total.
Interest-coverage ratio, times
Profit after financial income and expense with adding-back of financial expense in relation to financial expense.
Debt/equity ratio, times
Interest-bearing liabilities in relation to shareholders’ equity at the end of the period under review.
Return on total capital, %
Profit after financial items, with a supplement for financial ex- pense, as a percentage of the average balance-sheet total.
Return on shareholders’ equity, %
Profit for the period under review as a percentage of average share- holders’ equity.
Capital employed, SEK m
Balance-sheet total at the end of the period under review, less non-interest-bearing liabilities and provisions.
Average interest on interest-bearing liabilities, %
Estimated interest expense on an annual basis at the end of the period under review, as a percentage of interest-bearing liabilities.
Share-related Number of shares
Average number of outstanding shares during a particular period.
Shareholders’ equity per share, SEK
Shareholders’ equity in relation to the number of shares at year- end.
Earnings per share, SEK
Profit for the period under review in relation to the average num- ber of shares.
Cash flow per share, SEK
Cash flow for the period under review in relation to the average number of shares.
Dividend per share, SEK
Actual dividend for the financial year in relation to the average number of shares at year-end.
P/E ratio
Share price at year-end in relation to earnings per share for the period under review.
Definitions Notice convening
the Annual General Meeting
Brinova today Under tab
Brinova 2007 1
Chief Executive Officer’s Review 2-5
Business model 6-9
Operations in 2007 10-13
Proprietary projects 2003-2007 14
Business area presentation 16-17
Proprietary projects 2003-2007, cont. 19 Customer cooperation – Interlink 20
Shareholdings business area 21
Presentation of Shareholding 22-23
Valuation and financing 24-26
Market players 27
Logistics market 28-29
Property market 30-31
Employees and the environment 32-33
Risk management 34-39
The Brinova share 40-41
Corporate governance 42-44
Board of Directors’ Report 45-48
Financial statements 49
Group
Consolidated income statement 50
Consolidated balance sheet 51
Consolidated changes in shareholders’ equity 52 Consolidated cash-flow statement 53 Parent Company
Income statement 54
Balance sheet 55
Changes in shareholders’ equity 56
Cash-flow statement 57
Notes 58-83
Appropriation of profits and signatures 84
Auditor’s Report 85
Company management 86
Board of Directors 87
Six-year summary 88
Summary of property portfolio Under tab
Property list Under tab
Definitions On tab
Contents
Property-related
Vacancy ratio for floor space, %
Vacant floor space as a percentage of lettable area at the end of the period under review.
Yield, %
Net operating income, excluding property administration, as a percentage of the properties’ book value at the end of the period under review at the end of the period under review.
Gearing ratio, %
Interest-bearing liabilities with respect to properties as a percent- age of book value of properties at the end of the period under review.
Lettable area
The total area that is available for letting.
Rental value, SEK m
Closing rent on an annual basis, with a supplement for assessed market rent for vacant floor space.
Net operating income, SEK m
R ental income less operating and maintenance costs, property tax, ground rent and property administration.
Economic vacancy ratio, %
Assessed market rent for unlet floor space as a percentage of rental value.
Economic letting ratio, %
Contractual rent for current tenancy agreements at the end of the period under review as a percentage of rental value.
Surplus ratio, %
Net operating income as a percentage of rental income or contrac- tual rental income.
Time and place
The Annual General Meeting of Brinova Fastigheter AB (publ) will be held on Thursday, 24 April 2008 at 3:00 p.m. at Sundspärlan, Fältarpsvägen in Helsingborg, Sweden.
Right to attend
To be entitled to participate in the Meeting, share- holders must be registered in the shareholders’
register maintained by the Swedish Central Secu- rities Depository, NCSD/VPC AB, not later than Friday, 18 April 2008. Shareholders whose shares are nominee-registered must temporarily register the shares in their own name not later than this date. Such registration should be requested from the party managing the shares well in advance of the Meeting.
Notification of attendance
A notification of the intent to participate in the Annual General Meeting must be made by e-mail to anmalan@brinova.se not later than 2:00 p.m.
Friday, 18 April 2008. Notification may also be made by phone on +46-42-449 22 00, by fax on +46-42-449 22 99, or by mail to Brinova Fastig- heter AB, Verkstadsgatan 13, SE-252 27 Helsing- borg, Sweden. In the notification, the shareholder shall provide his/her name, personal ID number/
corporate registration number, address, phone number, potential assistants and number of sha- res. If participation is by proxy, the registration certificate or another document of authorisation should be submitted well in advance of the Meet- ing to Brinova Fastigheter AB.
Dividend
The Board of Directors proposes a regular divi- dend of SEK 5.00 per share and an extra dividend of SEK 1.50. The date of reconciliation for the di- vidends is proposed to be 29 April 2008. Should the Annual General Meeting pass a resolution in agreement with the proposal, the dividends are anticipated to be disbursed from VPC on Monday, 5 May 2008.
A complete convening notice will be publis- hed at the beginning of April.
Brinova Fastigheter AB is a modern, customer-oriented and successful property company that generates value by developing its own strategically located proprietary logistics properties, commercial properties, housing and
investments in other property companies.
BRINOVA’S ANNUAL REPORT 2007 BRINOVA’S ANNUAL REPORT 2007
Investor relations
Anders Silverbåge, President and CEO.
Tel. +46-42-449 22 22. Mobile +46-730-70 22 22.
anders.silverbage@brinova.se.
Peter Andersson, CFO.
Tel. +46-41-449 22 44. Mobile +46-730-70 22 44.
peter.andersson@brinova.se.
Jonas Hallström, IR/Marketing Coordinator.
Tel. +46-42-449 22 43. Mobile +46-730-70 22 43.
jonas.hallstrom@brinova.se.
This symbol indicates that more or updated information is available at www.brinova.se, where an interactive Annual Report is also published.
WWW
Head office:
Brinova Fastigheter AB (publ).
Verkstadsgatan 13, SE-252 27 Helsingborg, Sweden.
Tel: +46-42-449 22 00, Fax: +46-42-449 22 99.
Branch offices:
Brinova Fastigheter AB.
Regeringsgatan 67, SE-111 56 Stockholm, Sweden.
Tel: +46-8-508 90 670, Fax. +46-8-730 27 60.
Brinova Fastigheter AB.
Löjtnant Granlunds Väg, SE-281 52 Hässleholm, Sweden.
Tel: +46-451-490 60, Fax: +46-451-490 67.
Brinova Fastigheter AB.
J A Pripps gata 2, SE-421 32 Västra Frölunda, Sweden.
Tel: +46-31-334 46 50, Fax: +46-31- 334 46 59.
A modern
property company
Wihlborgs Fastigheter AB
Diös Fastigheter AB
Klövern AB
Platzer Fastigheter AB Fabege AB
Brinova owns shares in property companies in the most attractive property markets in Sweden. Theses companies are among the leading players in the respective markets and are financial investments that increase our market pre- sence. We also participate in the creation of new property companies as a partner.
Shareholdings
Wihlborgs focuses on commercial properties in the Öresund region. The property stock is located in Malmö and Helsingborg, where Wihlborgs is a leading company, and in Lund and Copenhagen.
Diös Fastigheter’s niche is high yield properties in northern Sweden, primarily in Borlänge, Falun, Mora, Östersund and Gävle.
Klövern is a development property company focused on commercial properties in Borås, Karlstad, Kista, Linkö- ping, Norrköping, Nyköping, Täby, Uppsala, Västerås and Örebro.
In the beginning of 2008, we formed a joint company together with the Ernströmgruppen and Länsförsäkringar in Gothenburg and Bohuslän that focuses on the Gothen- burg region.
Fabege focuses on commercial properties and projects in the Stockholm region.
Property list at 31 December 2007
Lettable area, sq.m.
Acquired Year built Rental Assessed
in and Residen- Industrial/ value, value,
Property designation Municipality Address 2007 renovated Logistics tial Office Retail storage Other Total SEK m SEK m
Logistics
Ametisten 5 Helsingborg Porfyrgatan land 6,889 0 780 0 0 0 7,669 4,938 31,362
Arnulf Öfverland 1 Kristianstad Estrids väg 2 1989 0 0 130 725 895 0 1,750 569 3,545
Backa 18:9 Gothenburg Risbindaregatan 3, Hisingsbacka 1977 0 0 385 1,058 526 0 1,969 1,109 6,666
Backa 97:10 Gothenburg Exportgatan 43-45 1979/83 11,965 0 1,470 0 0 0 13,435 7,623 41,680
Barnarps-Kråkebo 1:44 Jönköping Möbelvägen 39 1991 34,160 0 1,000 0 0 0 35,160 12,930 77,850
Basfiolen 7
2)Norrköping Moa Martinsons gata 10A 1983 0 0 220 950 148 0 1,318 472 2,081
Dikartorp 3:12 Järfälla Passadvägen 8 2001 4,715 0 901 0 0 0 5,616 4,309 34,400
Gasklockan 2 Mölndal Argongatan 32 * 1991 3,414 0 618 450 50 0 4,532 3,354 25,363
Godsvagnen 6 Örebro Terminalgatan 2 * 1992 18,720 0 880 0 0 0 19,600 9,079 51,881
Hästhagen 4 Helsingborg Landskronavägen 5, 7A-E 1939/1997 29,977 0 5,496 0 2,631 0 38,104 15,290 81,493
Jakobsberg 22:16 Sth/Järfälla Mossvägen 4 1992 2,155 0 300 0 0 0 2,455 1,525 10,471
Kopparverket 11 Helsingborg Stormgatan 11 2007 26,600 0 0 0 0 0 26,600 5,851 6,600
Källebäcksryd 1:408 Borås Tvinnargatan 17, Brämhult 1990 0 0 154 283 810 0 1,247 491 3,755
Köpingegården 1 Helsingborg Trintegatan 10 1996/2000 20,000 0 4,442 0 0 150 24,592 16,990 47,945
Mosås 4:57 Örebro Sättertorpsvägen 10 1998/2004 12,089 0 0 0 0 0 12,089 4,010 16,297
Mosås 4:66 Örebro Paketvägen 2007 7,700 0 1,100 0 0 0 8,800 6,840
Nattskiftet 11
2)Stockholm Drivhjulsv 40-50,, Elektrav 11-23,
Västberga Alle 29-35 1996/2000 22,232 0 3,610 0 0 0 25,842 14,561 9,865
Njursta 1:21 Sth/Uppl Väsby Jupitervägen 2 1972 11,472 0 2,012 0 0 0 13,484 7,753 32,773
Regulatorn 2 Sth/Huddinge Elektronvägen 1 1967/1975 48,300 0 0 0 0 0 48,300 24,158 132,454
Slottshagen 2:1
2)Norrköping Kommendantvägen 1970/2001/2005 13,244 0 1,064 0 0 818 15,126 7,990 0
Släggan 1 Ljungby Kånnavägen 40 1945/1954/1964 6,700 0 200 0 0 0 6,900 1,059 6,375
Sörby Urfjäll 38:2 Gävle Elektrikergatan 4 1990 0 0 159 218 1,050 0 1,427 694 3,962
Tappen 1 Borås Lamellgatan 1-3 1984/1990 5,347 0 352 0 0 0 5,699 1,919 13,382
Terminalen 3
2)Malmö Terminalgatan 7 - 25,000 0 8,300 0 0 0 33,300 11,588 0
Törsjö 2:49 Örebro Paketvägen 1 2002/2004 52,400 0 2,855 0 0 0 55,255 32,331 116,636
Vanda 1
2)Stockholm Vandagatan 3 1990 26,048 0 0 0 0 0 26,048 14,271 164,200
Vasslan 1
2)Stockholm Sockengränd 2, Årsta 1986 0 0 1,357 1,986 2,056 0 5,399 4,069 27,988
Vindtunneln 1 Borås Vevgatan 18 2002 16,440 0 500 0 0 0 16,940 10,500 56,381
Värdshuset 3 Sundsvall Värdshusvägen 5 1985/1991 0 0 126 898 488 0 1,512 692 2,545
Älghunden 3 Jönköping Muttervägen 3 1983/2001 0 0 333 0 3,135 270 3,738 1,582 10,343
Östanvinden 5
2)Karlstad Östanvindsgatan 4 1983/1991 0 0 115 1,215 0 0 1,330 659 2,770
Total Logistics 405,567 0 38,859 7,783 11,789 1,238 465,236 229,208 1,021,063
Residential/Commercial
Afrika 18 Helsingborg Verkstadsg 13, Rågångsg 7 1990 0 0 1,146 0 293 0 1,439 1,217 6,954
Bulten 2 Åstorp Malmövägen 7 1989 0 0 1,122 0 2,929 411 4,462 2,362 15,302
Darehallen 1 Hässleholm Löjtnant Granlundsväg 4 1906/80 0 0 0 0 0 700 700 325 0
Frigg 1 Helsingborg N Tvärgången 2 1987 0 0 500 0 1,378 0 1,878 1,487 5,880
Gräset 19&20, Citadellstaden Landskrona N. Långg/Trädgårdsg 2006 0 0 0 4,137 0 253 4,390 4,353 27,741
Gullbergsvass 1:1 Gothenburg Lilla Bommen 3 1989 0 0 11,586 0 0 0 11,586 21,079 181,000
Heideman 1 Hässleholm Löjtnant Granlundsv 1A-C 1900/93 0 3,607 0 0 0 15 3,622 2,852 19,476
Intendenten 3 Hässleholm Transportgatan 4-6 1975/93 0 0 1,540 0 3,360 0 4,900 3,101 0
Jupiter 4 Helsingborg Grenadjärsgatan 14 1951/79 0 0 900 0 2,320 0 3,220 1,523 8,748
Ladan 6
1)Båstad Ladugårdsvägen 26-40 1989 0 334 0 0 0 0 334 257 5,423
Magasinet 1 och 4 Hässleholm Stjärneholmsvägen 10,12 1920 0 0 160 1,980 538 2,270 4,948 1,292 9,427
Nordstaden 14:1 Gothenburg Postg.5, 15/Köpmang 12/Smedjeg 2-4 1993-1995 0 0 10,139 0 0 0 10,139 16,844 132,800
Oxievång 2, 3, 6
2)Malmö Lertegelv / Stengodsv 1981 0 2,713 1,837 5,114 104 4,156 13,924 13,307 62,184
Påfågeln 9 Helsingborg Frejagatan 4-8 1961 0 0 110 0 685 0 795 387 2,017
Remonten 1 Hässleholm Löjtnant Granlundsväg 4 1950/94 0 0 1,182 0 303 735 2,220 1,111 1,532
Rubanken 10 Borlänge Hantverkargatan 22 1970 0 0 1,696 0 6,311 952 8,959 3,075 12,349
Ruuth 23 Helsingborg Bruksgatan 29 1900/55/80 0 130 1,687 146 891 791 3,645 2,142 21,326
Solliden 1 Torsby Torsby Skepparegatan 1 2002 0 0 0 0 0 2,298 2,298 1,768 0
Spanien 11 Helsingborg Kvarnstensg 6-8, Motorg 3-5 1929/38/52/89 0 0 2,343 175 2,413 2,298 7,229 3,404 20,922
Tigern 7
2)Landskrona Enoch Thulins v.19, Rönnebergsg.81 1965 0 0 500 410 645 25 1,580 889 2,649
Tre Överstar 1 Hässleholm Löjtnant Granlundsväg 10 1920/94 0 0 1,600 0 0 0 1,600 1,090 7,544
Tre Överstar 4 Hässleholm Löjtnant Granlundsväg 8 1920/94 0 0 1,600 0 0 0 1,600 1,262 5,968
Trängaren 1 Hässleholm Löjtnant Granlundsväg 2 1900/94 0 0 785 0 0 13 798 554 2,666
Tyfonen 1 Helsingborg Landskronav.20, Elektrog. 16 1978/1993/95
3)0 0 2,300 0 2,200 0 4,500 2,297 12,610 Unionen 16 Helsingborg Bruksg 2, S Strandg 1-3, Kyrkog 4 1970/2000 0 1,517 3,210 940 158 6,753 12,578 11,958 115,385
Total Residential/Commercial 0 4,360 45,943 12,902 24,528 21,655 109,388 96,827 655,004
Projects
Backa 23:5 Gothenburg v Exportgatan 14 * 1992 12,800 0 540 0 0 0 13,340 4,164 49,176
Bronsringen 1, Bronsringen 3 Malmö Bronsgjutaregatan 4 * land 0 0 0 0 0 0 0 0
Jordbromalm 4:34 Haninge Lillsjövägen land 0 0 0
Karantänen 1
2)Helsingborg Norra hamnen 1940 0 0 0 0 400 0 400 34 824
Motståndet 2
2)Bromma Ulvsundavägen 178 1956/91 0 0 1,369 0 328 1,697 1,283 9,855
Plantehuset 1, Knaggahus 1 Helsingborg Tostarpsvägen * land 0 0 0 0 0 0 0 0
Rödspottan 9 Helsingborg Sehlstedtsgatan 1 1988 0 500 1,033 0 0 0 1,533 1,328 12,794
Unionen 23 Helsingborg Bruksgatan 10, 12 1984 0 350 0 104 29 75 558 662 6,269
Unionen 24 Helsingborg Bruksg, Möllegränd 1930 0 0 0 0 0 0 0 1,481
Varvet 2
2)Helsingborg Redaregatan 10 1989 0 0 190 0 430 190 810 410 4,135
Ättehögen 2 Jönköping Herkulesvägen 56 1999 2,370 0 1,211 0 5,642 344 9,567 4,040 19,165
Total Projects 15,170 850 4,343 104 6,829 609 27,905 11,921 103,699
Total Brinova 420,737 9,151 89,145 20,789 43,146 23,517 606,485 341,066 1,804,665
1) Consists of four detached houses 2) The property is a site leasehold 3) Continuously
Brinova is a modern and active property company,
focused on customer solutions
rinova Fastigheter AB is a modern, customer-oriented and successful
property company that generates value by developing its own strategically located logistics properties,
commercial properties, housing and investments in other property companies.
Projects
Thanks to a continuous, in-depth analysis of the trends in logistics and the flow of goods, we can identify and acquire strategic logistics locations early to develop customised logistics, warehouse and terminal properties. Well-estab- lished customers and long-term commitments create stable cash flows and growth in value.
Logistics
We identify and acquire strategically located sites and properties and develop them through new construction or renovation. We have an attractive portfolio with ongoing and future projects that will generate new value.
Property portfolio
Residential/Commercial
We improve and optimise residential and commercial pro- perties together with the customers and users, generating stable net operating income and strong value growth.
Summary of Brinova’s property portfolio at 31 December 2007
Brinova today
Lettable area by premises type
Industrial/
Geographic area, ´000 sq.m. Logistics Residential Office Retail storage Other Total Proportion, %
Stockholm 114.8 − 9.6 2.0 2.4 − 128.8 21.3
Helsingborg 83.4 2.5 24.1 1.4 13.8 10.3 135.5 22.4
Gothenburg/Borås 49.9 − 25.8 1.8 1.4 − 78.9 13.0
Örebro 90.9 − 4.8 − − − 95.7 15.8
Malmö 25.0 2.7 10.1 5.1 0.1 4.2 47.2 7.8
Jönköping 36.6 − 2.5 − 8.8 0.6 48.5 8.0
Hässleholm − 3.6 6.9 2.0 4.2 3.7 20.4 3.4
Other cities 20.1 0.4 5.3 8.5 12.4 4.7 51.4 8.4
Total properties 420.7 9.2 89.1 20.8 43.1 23.5 606.4 100.0
No. of properties
Properties’ yield
Lettable Economic Contracted Net before after
No. area, Carrying Rental letting annual operating property property Profit
proper- ´000 amount, value, ratio, rent, income, adm., adm., margin,
ties sq.m. SEK m SEK m % SEK m SEK m % % %
Logistics 31 465.2 2,183.8 229.2 96 221.1 155.1 8.5 7.8 70.1
Residential/Commercial 27 113.3 1,043.9 99.9 94 93.7 61.1 6.3 5.8 65.2
Total 58 578.5 3,227.7 329.1 96 314.8 216.2 7.8 7.2 68.7
Projects 11 27.9 240.0 11.9 49 5.8 0.2 2.3 1.7 3.4
Total properties 69 606.4 3,467.7 341.0 94 320.6 216.4 7.4 6.8 67.5
Lettable area by premises type
Industrial/
Business area, ´000 sq.m. Logistics Residential Office Retail storage Other Total Proportion, %
Logistics 405.5 − 38.9 7.8 11.8 1.2 465.2 76.7
Residential/Commercial − 8.3 45.9 12.9 24.5 21.7 113.3 18.7
Total 405.5 8.3 84.8 20.7 36.3 22.9 578.5 95.4
Projects 15.2 0.9 4.3 0.1 6.8 0.6 27.9 4.6
Total property 420.7 9.2 89.1 20.8 43.1 23.5 606.4 100.0
Distribution by geographic area
Properties’ yield
Lettable Carrying Rental Economic Contracted Net operating before after
No. area, ´000 amount value, letting annual rent, income, property property Profit
Geographic area properties sq.m. SEK m SEK m ratio, % SEK m SEK m adm., % adm., % margin, %
Stockholm 9 128.8 642.3 71.9 99 71.3 50.7 8.6 7.9 71.1
Helsingborg 18 135.5 724.4 69.9 90 62.7 39.9 6.5 5.8 63.6
Gothenburg/Borås 9 78.9 834.4 67.1 90 60.5 47.3 6.1 5.7 78.2
Örebro 4 95.7 555.3 52.3 100 52.3 31.6 8.4 8.0 60.4
Malmö 3 47.2 257.3 24.9 96 23.8 13.3 7.6 6.9 55.9
Jönköping 3 48.5 180.3 18.5 94 17.4 12.1 7.6 6.7 69.5
Hässleholm 9 20.4 87.3 11.6 85 9.8 4.6 6.5 5.3 46.9
Other cities 14 51.4 186.4 24.8 92 22.8 16.9 10.0 8.8 74.1
Total properties 69 606.4 3,467.7 341.0 94 320.6 216.4 7.4 6.8 67.5
WWW
Wihlborgs Fastigheter AB
Diös Fastigheter AB
Klövern AB
Platzer Fastigheter AB Fabege AB
Brinova owns shares in property companies in the most attractive property markets in Sweden. Theses companies are among the leading players in the respective markets and are financial investments that increase our market pre- sence. We also participate in the creation of new property companies as a partner.
Shareholdings
Wihlborgs focuses on commercial properties in the Öresund region. The property stock is located in Malmö and Helsingborg, where Wihlborgs is a leading company, and in Lund and Copenhagen.
Diös Fastigheter’s niche is high yield properties in northern Sweden, primarily in Borlänge, Falun, Mora, Östersund and Gävle.
Klövern is a development property company focused on commercial properties in Borås, Karlstad, Kista, Linkö- ping, Norrköping, Nyköping, Täby, Uppsala, Västerås and Örebro.
In the beginning of 2008, we formed a joint company together with the Ernströmgruppen and Länsförsäkringar in Gothenburg and Bohuslän that focuses on the Gothen- burg region.
Fabege focuses on commercial properties and projects in the Stockholm region.
Property list at 31 December 2007
Lettable area, sq.m.
Acquired Year built Rental Assessed
in and Residen- Industrial/ value, value,
Property designation Municipality Address 2007 renovated Logistics tial Office Retail storage Other Total SEK m SEK m
Logistics
Ametisten 5 Helsingborg Porfyrgatan land 6,889 0 780 0 0 0 7,669 4,938 31,362
Arnulf Öfverland 1 Kristianstad Estrids väg 2 1989 0 0 130 725 895 0 1,750 569 3,545
Backa 18:9 Gothenburg Risbindaregatan 3, Hisingsbacka 1977 0 0 385 1,058 526 0 1,969 1,109 6,666
Backa 97:10 Gothenburg Exportgatan 43-45 1979/83 11,965 0 1,470 0 0 0 13,435 7,623 41,680
Barnarps-Kråkebo 1:44 Jönköping Möbelvägen 39 1991 34,160 0 1,000 0 0 0 35,160 12,930 77,850
Basfiolen 7
2)Norrköping Moa Martinsons gata 10A 1983 0 0 220 950 148 0 1,318 472 2,081
Dikartorp 3:12 Järfälla Passadvägen 8 2001 4,715 0 901 0 0 0 5,616 4,309 34,400
Gasklockan 2 Mölndal Argongatan 32 * 1991 3,414 0 618 450 50 0 4,532 3,354 25,363
Godsvagnen 6 Örebro Terminalgatan 2 * 1992 18,720 0 880 0 0 0 19,600 9,079 51,881
Hästhagen 4 Helsingborg Landskronavägen 5, 7A-E 1939/1997 29,977 0 5,496 0 2,631 0 38,104 15,290 81,493
Jakobsberg 22:16 Sth/Järfälla Mossvägen 4 1992 2,155 0 300 0 0 0 2,455 1,525 10,471
Kopparverket 11 Helsingborg Stormgatan 11 2007 26,600 0 0 0 0 0 26,600 5,851 6,600
Källebäcksryd 1:408 Borås Tvinnargatan 17, Brämhult 1990 0 0 154 283 810 0 1,247 491 3,755
Köpingegården 1 Helsingborg Trintegatan 10 1996/2000 20,000 0 4,442 0 0 150 24,592 16,990 47,945
Mosås 4:57 Örebro Sättertorpsvägen 10 1998/2004 12,089 0 0 0 0 0 12,089 4,010 16,297
Mosås 4:66 Örebro Paketvägen 2007 7,700 0 1,100 0 0 0 8,800 6,840
Nattskiftet 11
2)Stockholm Drivhjulsv 40-50,, Elektrav 11-23,
Västberga Alle 29-35 1996/2000 22,232 0 3,610 0 0 0 25,842 14,561 9,865
Njursta 1:21 Sth/Uppl Väsby Jupitervägen 2 1972 11,472 0 2,012 0 0 0 13,484 7,753 32,773
Regulatorn 2 Sth/Huddinge Elektronvägen 1 1967/1975 48,300 0 0 0 0 0 48,300 24,158 132,454
Slottshagen 2:1
2)Norrköping Kommendantvägen 1970/2001/2005 13,244 0 1,064 0 0 818 15,126 7,990 0
Släggan 1 Ljungby Kånnavägen 40 1945/1954/1964 6,700 0 200 0 0 0 6,900 1,059 6,375
Sörby Urfjäll 38:2 Gävle Elektrikergatan 4 1990 0 0 159 218 1,050 0 1,427 694 3,962
Tappen 1 Borås Lamellgatan 1-3 1984/1990 5,347 0 352 0 0 0 5,699 1,919 13,382
Terminalen 3
2)Malmö Terminalgatan 7 - 25,000 0 8,300 0 0 0 33,300 11,588 0
Törsjö 2:49 Örebro Paketvägen 1 2002/2004 52,400 0 2,855 0 0 0 55,255 32,331 116,636
Vanda 1
2)Stockholm Vandagatan 3 1990 26,048 0 0 0 0 0 26,048 14,271 164,200
Vasslan 1
2)Stockholm Sockengränd 2, Årsta 1986 0 0 1,357 1,986 2,056 0 5,399 4,069 27,988
Vindtunneln 1 Borås Vevgatan 18 2002 16,440 0 500 0 0 0 16,940 10,500 56,381
Värdshuset 3 Sundsvall Värdshusvägen 5 1985/1991 0 0 126 898 488 0 1,512 692 2,545
Älghunden 3 Jönköping Muttervägen 3 1983/2001 0 0 333 0 3,135 270 3,738 1,582 10,343
Östanvinden 5
2)Karlstad Östanvindsgatan 4 1983/1991 0 0 115 1,215 0 0 1,330 659 2,770
Total Logistics 405,567 0 38,859 7,783 11,789 1,238 465,236 229,208 1,021,063
Residential/Commercial
Afrika 18 Helsingborg Verkstadsg 13, Rågångsg 7 1990 0 0 1,146 0 293 0 1,439 1,217 6,954
Bulten 2 Åstorp Malmövägen 7 1989 0 0 1,122 0 2,929 411 4,462 2,362 15,302
Darehallen 1 Hässleholm Löjtnant Granlundsväg 4 1906/80 0 0 0 0 0 700 700 325 0
Frigg 1 Helsingborg N Tvärgången 2 1987 0 0 500 0 1,378 0 1,878 1,487 5,880
Gräset 19&20, Citadellstaden Landskrona N. Långg/Trädgårdsg 2006 0 0 0 4,137 0 253 4,390 4,353 27,741
Gullbergsvass 1:1 Gothenburg Lilla Bommen 3 1989 0 0 11,586 0 0 0 11,586 21,079 181,000
Heideman 1 Hässleholm Löjtnant Granlundsv 1A-C 1900/93 0 3,607 0 0 0 15 3,622 2,852 19,476
Intendenten 3 Hässleholm Transportgatan 4-6 1975/93 0 0 1,540 0 3,360 0 4,900 3,101 0
Jupiter 4 Helsingborg Grenadjärsgatan 14 1951/79 0 0 900 0 2,320 0 3,220 1,523 8,748
Ladan 6
1)Båstad Ladugårdsvägen 26-40 1989 0 334 0 0 0 0 334 257 5,423
Magasinet 1 och 4 Hässleholm Stjärneholmsvägen 10,12 1920 0 0 160 1,980 538 2,270 4,948 1,292 9,427
Nordstaden 14:1 Gothenburg Postg.5, 15/Köpmang 12/Smedjeg 2-4 1993-1995 0 0 10,139 0 0 0 10,139 16,844 132,800
Oxievång 2, 3, 6
2)Malmö Lertegelv / Stengodsv 1981 0 2,713 1,837 5,114 104 4,156 13,924 13,307 62,184
Påfågeln 9 Helsingborg Frejagatan 4-8 1961 0 0 110 0 685 0 795 387 2,017
Remonten 1 Hässleholm Löjtnant Granlundsväg 4 1950/94 0 0 1,182 0 303 735 2,220 1,111 1,532
Rubanken 10 Borlänge Hantverkargatan 22 1970 0 0 1,696 0 6,311 952 8,959 3,075 12,349
Ruuth 23 Helsingborg Bruksgatan 29 1900/55/80 0 130 1,687 146 891 791 3,645 2,142 21,326
Solliden 1 Torsby Torsby Skepparegatan 1 2002 0 0 0 0 0 2,298 2,298 1,768 0
Spanien 11 Helsingborg Kvarnstensg 6-8, Motorg 3-5 1929/38/52/89 0 0 2,343 175 2,413 2,298 7,229 3,404 20,922
Tigern 7
2)Landskrona Enoch Thulins v.19, Rönnebergsg.81 1965 0 0 500 410 645 25 1,580 889 2,649
Tre Överstar 1 Hässleholm Löjtnant Granlundsväg 10 1920/94 0 0 1,600 0 0 0 1,600 1,090 7,544
Tre Överstar 4 Hässleholm Löjtnant Granlundsväg 8 1920/94 0 0 1,600 0 0 0 1,600 1,262 5,968
Trängaren 1 Hässleholm Löjtnant Granlundsväg 2 1900/94 0 0 785 0 0 13 798 554 2,666
Tyfonen 1 Helsingborg Landskronav.20, Elektrog. 16 1978/1993/95
3)0 0 2,300 0 2,200 0 4,500 2,297 12,610 Unionen 16 Helsingborg Bruksg 2, S Strandg 1-3, Kyrkog 4 1970/2000 0 1,517 3,210 940 158 6,753 12,578 11,958 115,385
Total Residential/Commercial 0 4,360 45,943 12,902 24,528 21,655 109,388 96,827 655,004
Projects
Backa 23:5 Gothenburg v Exportgatan 14 * 1992 12,800 0 540 0 0 0 13,340 4,164 49,176
Bronsringen 1, Bronsringen 3 Malmö Bronsgjutaregatan 4 * land 0 0 0 0 0 0 0 0
Jordbromalm 4:34 Haninge Lillsjövägen land 0 0 0
Karantänen 1
2)Helsingborg Norra hamnen 1940 0 0 0 0 400 0 400 34 824
Motståndet 2
2)Bromma Ulvsundavägen 178 1956/91 0 0 1,369 0 328 1,697 1,283 9,855
Plantehuset 1, Knaggahus 1 Helsingborg Tostarpsvägen * land 0 0 0 0 0 0 0 0
Rödspottan 9 Helsingborg Sehlstedtsgatan 1 1988 0 500 1,033 0 0 0 1,533 1,328 12,794
Unionen 23 Helsingborg Bruksgatan 10, 12 1984 0 350 0 104 29 75 558 662 6,269
Unionen 24 Helsingborg Bruksg, Möllegränd 1930 0 0 0 0 0 0 0 1,481
Varvet 2
2)Helsingborg Redaregatan 10 1989 0 0 190 0 430 190 810 410 4,135
Ättehögen 2 Jönköping Herkulesvägen 56 1999 2,370 0 1,211 0 5,642 344 9,567 4,040 19,165
Total Projects 15,170 850 4,343 104 6,829 609 27,905 11,921 103,699
Total Brinova 420,737 9,151 89,145 20,789 43,146 23,517 606,485 341,066 1,804,665
1) Consists of four detached houses 2) The property is a site leasehold 3) Continuously
Brinova is a modern and active property company,
focused on customer solutions
rinova Fastigheter AB is a modern, customer-oriented and successful
property company that generates value by developing its own strategically located logistics properties,
commercial properties, housing and investments in other property companies.
Projects
Thanks to a continuous, in-depth analysis of the trends in logistics and the flow of goods, we can identify and acquire strategic logistics locations early to develop customised logistics, warehouse and terminal properties. Well-estab- lished customers and long-term commitments create stable cash flows and growth in value.
Logistics
We identify and acquire strategically located sites and properties and develop them through new construction or renovation. We have an attractive portfolio with ongoing and future projects that will generate new value.
Property portfolio
Residential/Commercial
We improve and optimise residential and commercial pro- perties together with the customers and users, generating stable net operating income and strong value growth.
Summary of Brinova’s property portfolio at 31 December 2007
Brinova today
Lettable area by premises type
Industrial/
Geographic area, ´000 sq.m. Logistics Residential Office Retail storage Other Total Proportion, %
Stockholm 114.8 − 9.6 2.0 2.4 − 128.8 21.3
Helsingborg 83.4 2.5 24.1 1.4 13.8 10.3 135.5 22.4
Gothenburg/Borås 49.9 − 25.8 1.8 1.4 − 78.9 13.0
Örebro 90.9 − 4.8 − − − 95.7 15.8
Malmö 25.0 2.7 10.1 5.1 0.1 4.2 47.2 7.8
Jönköping 36.6 − 2.5 − 8.8 0.6 48.5 8.0
Hässleholm − 3.6 6.9 2.0 4.2 3.7 20.4 3.4
Other cities 20.1 0.4 5.3 8.5 12.4 4.7 51.4 8.4
Total properties 420.7 9.2 89.1 20.8 43.1 23.5 606.4 100.0
No. of properties
Properties’ yield
Lettable Economic Contracted Net before after
No. area, Carrying Rental letting annual operating property property Profit
proper- ´000 amount, value, ratio, rent, income, adm., adm., margin,
ties sq.m. SEK m SEK m % SEK m SEK m % % %
Logistics 31 465.2 2,183.8 229.2 96 221.1 155.1 8.5 7.8 70.1
Residential/Commercial 27 113.3 1,043.9 99.9 94 93.7 61.1 6.3 5.8 65.2
Total 58 578.5 3,227.7 329.1 96 314.8 216.2 7.8 7.2 68.7
Projects 11 27.9 240.0 11.9 49 5.8 0.2 2.3 1.7 3.4
Total properties 69 606.4 3,467.7 341.0 94 320.6 216.4 7.4 6.8 67.5
Lettable area by premises type
Industrial/
Business area, ´000 sq.m. Logistics Residential Office Retail storage Other Total Proportion, %
Logistics 405.5 − 38.9 7.8 11.8 1.2 465.2 76.7
Residential/Commercial − 8.3 45.9 12.9 24.5 21.7 113.3 18.7
Total 405.5 8.3 84.8 20.7 36.3 22.9 578.5 95.4
Projects 15.2 0.9 4.3 0.1 6.8 0.6 27.9 4.6
Total property 420.7 9.2 89.1 20.8 43.1 23.5 606.4 100.0
Distribution by geographic area
Properties’ yield
Lettable Carrying Rental Economic Contracted Net operating before after
No. area, ´000 amount value, letting annual rent, income, property property Profit
Geographic area properties sq.m. SEK m SEK m ratio, % SEK m SEK m adm., % adm., % margin, %
Stockholm 9 128.8 642.3 71.9 99 71.3 50.7 8.6 7.9 71.1
Helsingborg 18 135.5 724.4 69.9 90 62.7 39.9 6.5 5.8 63.6
Gothenburg/Borås 9 78.9 834.4 67.1 90 60.5 47.3 6.1 5.7 78.2
Örebro 4 95.7 555.3 52.3 100 52.3 31.6 8.4 8.0 60.4
Malmö 3 47.2 257.3 24.9 96 23.8 13.3 7.6 6.9 55.9
Jönköping 3 48.5 180.3 18.5 94 17.4 12.1 7.6 6.7 69.5
Hässleholm 9 20.4 87.3 11.6 85 9.8 4.6 6.5 5.3 46.9
Other cities 14 51.4 186.4 24.8 92 22.8 16.9 10.0 8.8 74.1
Total properties 69 606.4 3,467.7 341.0 94 320.6 216.4 7.4 6.8 67.5
BRINOVA’S ANNUAL REPORT 2007 BRINOVA’S ANNUAL REPORT 2007
WWW
Property operations Share management Group
Return on shareholders’ equity
%
2004 2005 2006 2007
0
10 20 30 40 50
Target
Yield
%
2004 2005 2006 2007
0
2 4 6
Target
Interest-coverage ratio times
2004 2005 2006 2007
0
1 2 3 4 5
Target Equity ratio
%
2004 2005 2006 2007
0
10 20 30 40
Target
Equity ratio
%
2004 2005 2006 2007
0
20 40 60 80
Target
Share dividends
%
2004 2005 2006 2007
0
20 40 60 80
Utdelning
Target
The average yield is calculated as a received dividend in relation
Brinova 2007
Highlights of 2007
Rental income amounted to SEK 308.8 m (297.5).
•
Profit for the year was SEK 351.2 m after tax (346.0). This figure included
•
pre-tax profit of SEK 72.9 m (51.0) from realised changes in value from investment properties.
Unrealised changes in value from investment properties before tax of
•
SEK 66.2 m (195.7) are included in the annual figure.
Brinova’s shareholders’ equity was adjusted downwards by SEK 774.5 m
•
after changes in value of shareholdings.
Earnings per share amounted to SEK 14.68 (17.15)
•
1).
The Board proposes a regular dividend of SEK 5.00 plus an extra dividend
•
of SEK 1.50 per share (5.00 plus an extra dividend of 1.50 per share).
1) With conversion, the number of shares rose from 22,599,231 to 25,101,017.
Important events
10 properties totalling 101,000 sq.m. at a property value of SEK 630.1 m were
•
divested with a combined realised profit of SEK 72.9 m.
Six properties totalling 38,000 sq.m. at a value of SEK 231.5 m were acquired
•
during the year.
The government approved the plans for the development of Tostarp, next to
•
the E4/E6/E20 highway east of Helsingborg. Brinova can now develop the area with new logistics facilities.
Management office opened in Gothenburg.
•
Brinova sold all shares in Amplion Strukturkapital AB to Catella AB.
•
During 2007, 189,837 own shares were repurchased at an average price of
•
SEK 91.15 (including brokerage).
Brinova’s Board adopted new financial targets for the business.
•
The Group in figures
31 Dec. 2007 31 Dec. 2006
Profit after net financial items, SEK m 388.7 428.4
Profit for the year, SEK m 351.2 346.0
Balance-sheet total, SEK m 6,086.7 6,214.9
Before dilution
Shareholders’ equity per share, SEK 98.20 118.31
Earnings per share, SEK 14.68 17.15
Property income, SEK m 308.8 297.5
Net operating income, SEK m 216.4 219.4
Rental value, SEK m
1)341.0 335.7
Lettable area, ´000 sq.m. 606.4 612.6
Yield before property administration, %
1)7.4 7.5
1) On remaining properties at year-end.
Three good reasons to invest in Brinova
Clear financial targets 1.
Attractive project and 2.
property portfolio
Positive earnings trend
3.
2 BRINOVA’S ANNUAL REPORT 2007
Brinova is a modern property company
uring the four years that Brinova has been a listed property company, we have developed into an important partner in meeting our customers’
property needs.
For us, the customers and their needs are in focus, not the prop- erties. This is a natural development that has grown out of the expertise and the network that comprises the core of Brinova’s business model.
Brinova is a modern property company, in other words a flexible and transaction-oriented, but above all, customer-oriented property company. This means that we think differently and often find value that nobody else had time to see; value that we can develop through commitment and expertise. Owning properties is important. But we also view divestments as a part of adding value.
This means that we always strive to find buyers that have the same fundamental values as we have. In one area, we view long-term ownership as an important part of the improvement process.
This area is logistics properties – a field in which we have unique knowledge. Through future-oriented commitment with well-
established tenants and long-term leases, these properties provide stable revenues, a strong cash flow and an attractive value growth, making it possible for us to develop other property projects.
Consequently, we primarily work to develop projects into functional solutions – under our own direction or on behalf of our customers. This approach suits our active business model and gives us the possibility to act quickly with retained profitability.
Through our ability and capacity to identify attractive proper- ties and sites early on, and our broad market knowledge – both internally and through our partners – we can stay one step ahead and offer attractive solutions to our customers. And by adding our Chief Executive
Officer’s Review
Brinova is a flexible and
transaction-oriented, but
above all, customer-oriented
property company.
Value increments
1)and net operating income
2003
SEK m 2007 2006 2005 2004
2007
0 100 200 300 400 500
Value increments, SEK m Net operating income, SEK m
1) The term value increments includes realised and unrealised changes in property value.
expertise, we also increase the value of the properties in the long term.
At the same time that we develop our offering, our business model remains constant. The fact that the model works can espe- cially be seen in our profit after tax for 2007, which increased for the fifth consecutive year. This is due to continued skilled man- agement of our properties, which generate a stable net operating income. Realised and unrealised value increments in our property portfolio amounted to SEK 139.1 m. However, as requirements on yield increase and we find new future projects that can be devel- oped from the start, growth in value is expected to accelerate.
Of course, there are clouds looming on the horizon. A turbu- lent financial sector with feared credit losses and uncertain inter- est rates can also have an impact on the Swedish property market, resulting in lower property values. I also view this as an oppor- tunity for Brinova. Lower appraisals create attractive acquisition opportunities because it may force some players to realise part of their assets to live up to the banks’ terms. For our part, we have a low vacancy rate. We have secured new credit volumes, of which 90% are at low fixed interest until 2010/2012. We currently have a strong equity ratio, which naturally affects return on shareholders’
The fact that the model works can especially be seen in our profit after tax for 2007, which increased for the fifth consec- utive year.
equity. It reduces our exposure to interest risks and provides us
space to continue to be able to function as an active and commit-
ted partner to our customers in the future. At the same time, we
can develop several new projects and thereby generate value that
can be reinvested in operations.
4 BRINOVA’S ANNUAL REPORT 2007
Skills transfer
creates synergies
Today, Brinova is divided into four business areas. However, in practice, a continuous transfer of skills takes place between the different areas, which is one of the secrets of our success. By com- bining competencies in various projects, we generate attractive synergy effects and gain opportunities to develop new property solutions nobody thought possible.
We will continue to focus on the areas we identify as growth regions and those in which we have developed strong local net- works. Thanks to these, we will gain rapid access to information, which offers us more opportunities to be able to act at an early stage. We also work with external analyst firms and researchers to obtain the most accurate view possible of future market trends.
This knowledge makes it possible for us to not only monitor the market, but in many cases to actively lead it and thereby identify business opportunities before everyone else. One example is the Bergendahl establishment of City Gross in Landskrona where we were among the first to recognise the potential that is obvious to
everyone today. Other examples include our logistics projects in Tostarp outside Helsingborg and Sunnanå outside Malmö.
Environmental issues were increasingly in focus during the year and Brinova has an opportunity to contribute to this area through efforts such as finding well-positioned logistics sites that increase resource utilisation and limit transport distances. This is how the recently named site in Sunnanå, right next to the E20 highway outside Malmö, will reduce the heavy traffic load in the central districts of the city and shorten the total number of kilo- metres driven. In terms of housing and commercial property, this environmental mindset is a natural part of our refinement input, in which we always strive to reduce energy consumption and otherwise optimise operations.
During the year, Brinova was also environmentally certified in accordance with ISO 14001. This is an important step in our environmental work, but certainly not the last.
We gain rapid access to information, which offers us more opportunities to be able to act at an early stage.
Brinova
Logistics
Residential/Commercial Projects
Shareholding Chief Executive
Officer’s Review
In summary, Brinova further developed and refined the business model during the year. In doing so, we can continue to meet our customers’ needs, including the needs of logistics companies for strategically located and technically advanced logistics terminals, industry’s needs for functional and operationally secure premises in good locations, and private tenants’ needs for good, well-main- tained housing. We can also continue to meet serious investors’
needs for well-managed properties with good returns, the munici- palities’ needs for infrastructure and a modern property stock and, above all, our owners’ requirements on returns.
In conclusion, I would like to thank all of Brinova’s employees for the commitment you have shown during 2007. With you, the profit for the year, our well-defined strategies and an awareness of the challenges that lie ahead, I can only view the future in a posi- tive light.
Helsingborg, March 2008
Anders Silverbåge
Film The driver of our business is project development. To be able to quickly resolve our customers’ property problems, we always actively seek attractive new property projects to develop.
We already have a very attractive project portfolio with major potential for future value growth. Here, I would like to emphasize the logistics side, where Brinova acquired a number of sites in very attractive locations. The aforementioned property in Tostarp where the E4 highway crosses the E6 and E20 are examples of this. During the year, the detailed plan was completed and we are now ready to develop 280,000 sq.m. of land in a very strategic location from a logistics perspective, right next to the newly con- structed exit ramp.
Besides the operating advantages we gain through coopera- tion with the companies in our share portfolio, we achieved a strong yield on our financial investments. Although as a result of a declining trend on the stock exchange at the end of 2007, we were forced to reduce the book value on the balance-sheet date. The stock market fluctuates and we expect the value of our financial holdings to recover.
Active project develop- ment is based on future values.
WWW
