During the first half of the year, we continued to focus on enhancing the company's liquidity and completing sustainable and high-quality projects for our buyers. In total, we delivered around 1,800 residential units to our buyers and we expect to complete and deliver around 1,500 more residential units in the second half of the year.
Johan Tengelin, CEO Magnolia Bostad:
"We are continuing to develop our projects for certification according to at least Swedish Green Building Council's (SGBC) silver certification, or an equivalent, with a focus on low energy consumption, a careful choice of materials and a good indoor and outdoor environment for residents. During the second quarter, we sold four projects comprising a total of 730 residences. These projects include a completed property in Brogårdstaden, Upplands-Bro, a project in Knivsta which is under construction and two completed properties on Gotland. Through these sales, we have freed up liquidity while reduced our level of indebtedness at the same time.
After a period when inflation and interest rates were high, we now see that inflation is moving towards the 2% target and that the Riksbank has started to reduce the key policy rate. We expect another two to three reductions in the second half of the year. Along with an increasing appetite for investment and a stabilization of contract prices, the conditions for a gradual recovery in new housing production are good. The residential transaction market, including rentals which is our largest segment, is showing signs of recovery and we are experiencing increased interest in our projects from investors.
We currently have 7,000 building permits with zoning plans in force, the majority of which are in the Stockholm region, which means that we are in a good position to be able to start a number of new projects in the quarters to come. I am proud of the accommodation we contribute to the housing market and would like to thank all our employees for the drive and commitment you have shown in maintaining our strong market position and execution capability through recent challenges. I have great faith in our business and look forward with confidence to an autumn where the playing field will hopefully be a lot livelier."
1 January-30 June 2024
- Net sales amounted to SEK 1,331 m (158).
- The operating loss was SEK 548 m (-286), of which SEK 84 m (-25) applies to changes in the value of investment properties.
- The loss before tax for the period was SEK 708 m (-419) and the loss after tax was SEK 691 m (-422).
1 April-30 June 2024
- Net sales amounted to SEK 1,279 m (101).
- The operating loss was SEK 423 m (-179), of which SEK -36 m (-21) applies to changes in the value of investment properties.
- The loss before tax for the period was SEK 501 m (-245) and the loss after tax was SEK 482 m (-246).
Events April 1-June 30, 2024
- Sale of two properties, one in Knivsta and one in Upplands-Bro for a total of 524 residential units.
- Sale of two properties on Gotland, one assisted living facility and one student residence, for a total of 210 homes.
- Sale of the land intended for the development of the projects Bredden in Upplands Väsby and Senapsfabriken etapp 3 in Uppsala.
- Received construction credit for a project in in Botkyrka where production is ongoing with 77 homes.
- Carried out a downsizing of the organization to adapt it to changed market conditions.
Events after the end of the period
- Obtained construction credit for a project in Borås where production is ongoing with 296 apartments.
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 AB 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 2024-07-05 07:45 CEST.
About Magnolia Bostad
Magnolia Bostad AB, CIN 556797-7078, develops new residential properties, rental apartments, tenant-owned apartments, and community service properties in attractive locations in Sweden's growth areas and major cities. Housing is developed both for sale and self-management. Our work is based on a holistic approach where the operations are carried out 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
