2023 marked a dramatic and rarely seen slowdown in Sweden's housing production, a trend not witnessed since the early 90s. Due to a high volume of production starts in 2020-2021, we began 2023 with a total of 9,300 residencies in production, of which 78% were sold to institutional investors and the rest were developed for our use. During the year, we completed 1,932 residential units, of which 1,779 have been handed over to customers in line with concluded contracts. Under the current circumstances, however, it has been challenging to start production of new projects and in 2023 we started one project, comprising 57 units. Today, Magnolia Bostad has 7,500 residential units in production.
Our result for 2023, which was affected by the market situation with missed production starts, high interest rates and negative valuation effects, is anything but satisfactory.
Decreasing inflation and forecasts of falling interest rates mean that there are conditions for a gradual recovery in the housing market in 2024. There's a huge need for quality housing in Sweden's growth regions, mainly around the major cities, but also in towns that are part of the green industrial shift.
To meet lower future production volumes, we must adapt our organization and reduce our costs, a difficult but unfortunately inevitable decision. With the aim of being one of Sweden's leading urban developers, we need to create the conditions for stable, profitable business, and after these measures we will be better positioned to take advantage of business opportunities as the market recovers.
1 January-31 December 2023
- Net sales amounted to SEK 305 m (569).
- The operating loss was SEK 595 m (-747), of which SEK -104 m (-230) applies to changes in the value of investment properties.
- The loss before tax for the period was SEK 871 m (-929) and the loss after tax was SEK 868 m (-863).
- Earnings per share after deductions for minority shares was SEK -21.34 (-20.89).
1 October-31 December 2023
- Net sales amounted to SEK 71 m (349).
- The operating loss was SEK 180 m (-235), of which SEK -30 m (-34) applies to changes in the value of investment properties.
- The loss before tax for the period was SEK 254 m (-288) and the loss after tax was SEK 252 m (-281).
- Earnings per share after deductions for minority shares was SEK -6.15 (-6.93).
Significant events 1 October-31 December 2023
Received an unconditional shareholder contribution of SEK 200 m from Magnolia Bostad's owner HAM Nordic AB.
Significant events after the end of the period
No significant events have occurred after the end of the period.
For more information, please contact:
Johan Tengelin, CEO
johan.tengelin@magnoliabostad.se
Fredrik Westin, Deputy CEO & CFO
fredrik.westin@magnoliabostad.se
+46 72 720 00 06
This information is information that Magnolia Bostad is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact persons set out above, at 2024-02-21 07:45 CET.
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. The company's bonds are listed on Nasdaq Stockholm. More information is available at www.magnoliabostad.se
