Review of 2010 – USD version - Skanska

Green Lustgården started
Poland – still strongest in Central Europe
Volume of Commercial Property
In central Stockholm, the existing Kvarteret Lustgården Poland is still showing stable growth in both Warsaw Development 1
Justerad avkastning på sysselsatt kapital
Volym i projektutveckling Färdigställda fastigheter
office property on the isle of till Kungsholmen marknadsvärde is och being redovisat värde and 2001−2010 a number of regional centers. Rent levels are rising
av kommersiella fastigheter 1) USD M
redovisat värde,
1,500
transformed into modern, % green offices. The first stage, in Warsaw and otherwise the market Mdr kr has stabilized.
1 januari 2011
15
500
phases, which will also include 170 new residential units, been acquired for future projects in several cities.
4
is expected to total about USD 367 M.
Stockholm, 67%
10
250
Czech Republic stabilizing
Göteborg, 17%
2
5
0
Financial synergies – Bundled Construction
The Czech economy improved during 2010. Skanska
Öresund, 9%
2006 2007 2008 2009 2010
Taking advantage of financial 0 synergies within Skanska sold the Vysehrad office project, as well as land with
Europa, 7%
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
2006 2007 2008 2009 2010
creates opportunities for both development and construction
operations. In the −− Ingenting Avkastning area på of sysselsatt Solna, kapital, marknadsvärde
stabilized. In Prague, Skanska also Sålda started projekt the City
Ongoing projects
building rights intended for a logistics facility. Vacancies
Projects sold
near Stockholm, Skanska was −− able Avkastning to offer på an sysselsatt attractive kapital, redovisat Green Court värde project, which will be Pågående the Czech projekt Republic’s
• Completed projects
lot with building rights to government-owned --- Genomsnitt Avkastning property på sysselsatt first kapital, office marknadsvärde
building to be environmentally • Färdigställda certified projekt
1 Refers to carrying amount of completed
at
projects and projected carrying amount
manager Specialfastigheter --- for the new headquarters
the highest LEED level, Platinum.
1) Avser redovisat värde i färdigställda
of ongoing real estate projects upon
of the Swedish Security Service. By selling the land,
projekt och bedömt redovisat värde
completion.
1) Inklusive driftnetto, upparbetade orealiserade utvecklingsvinster och förändringar
totaling 35,000 sq. m (377,000 30 sq. ft.) was started in 2010. The business unit sold Grunwaldzki 10 Center in
1,250
Lustgården, which encompasses a total of 55,000 sq. m Wrocław and started the new Green Towers project. In
25
(592,000 sq. ft.) will thus be one of the largest commercial
Warsaw it began construction of 8 Green Corner. These
1,000
projects in Sweden 20 and one of the largest ever projects will be the first buildings in Poland to achieve 750
for Skanska. The total investment for the three planned
6
LEED Platinum environmental certification. Land has
The Central European markets gradually improved
Projects sold
−− Return on capital employed, market value
after 2009. Both the investor and rental market strength-
Ongoing projects
−− Return on capital employed, carrying amount
ened, and the business unit signed new leases for a total
• Completed projects
--- Average return on capital employed, market value
of 24,000 sq. m (258,000 sq. ft.) of space.
--- Average return on capital employed, carrying amount 1 Refers to carrying amount of completed
vid färdigställande i pågående
Skanska also received the construction
i marknadsvärde.
assignment, Hungary showing growth again
fastighetsprojekt.
which totaled about USD 140 M.
The Hungarian economy is bouncing back, showing
In Malmö, Skanska was contracted to build that city’s growth again after a weak period. Vacancy rates, which
new conference center, Malmö Concert, Congress, Hotel, have been high, are on their way down. During 2010
Adjusted return on capital employed at market value and
Volume of Commercial Property Completed properties,
by also agreeing to develop new office and residential Skanska started the Green House project. It will be
carrying amount, 2001–2010
space next to the city facility. Project development within
Development carrying amount,
the first building in Hungary to achieve the LEED
%
SEK bn
January 1, 2011
Construction is generally called
30
Bundled Construction. Platinum level.
10
In 2010 the Nordic business unit had 14 ongoing projects
of which one was sold. 25 Two projects for Skanska’s United States
8
own account were completed during the year, while Skanska Commercial Development USA initiates and
20
12 are continuing during 2011.
develops commercial property projects 6 in selected
15
major cities. Two projects have been started in
Europe
4
Washington, D.C., and land with building rights has
Stockholm, 67%
10
Skanska Commercial Development Europe initiates also been purchased in Boston, Massachusetts and
Gothenburg, 17%
2
and develops commercial real 5 estate projects. Its operations
are concentrated in major cities in Poland, the in Seattle, Washington.
• Europe, 7%
Houston, Texas. The unit is also establishing operations
Malmö/Copenhagen, 9%
0
0
Czech Republic and Hungary. 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
2006 2007 2008 2009 2010
1 Including operating net, accrued unrealized development gains as well as changes in
projects and projected carrying amount
market value.
of ongoing real estate projects upon
Commercial Property Development – Markets
completion.
Revenue Operating income
Of which gain from
divestments of properties Capital employed
Return on
capital employed, % 1
USD M 2010 2009 2010 2009 2010 2009 2010 2009 2010 2009
Nordic 513 479 118 101 85 87 1,098 1,381 8.5 10.9
Europe 132 115 16 6 25 11 253 283 7.1 6.9
U.S. 0 0 –7 –5 0 0 62 14 neg –
1 Calculated in accordance with the definition of financial targets.
Commercial Property Development – Carrying amounts and market values
USD bn
Carrying
amount,
Dec 31, 2010
Carrying
amount
upon
completion
Market
value,
Dec 31, 2010
Surplus
value
Leasable
space,
000 sq. m
Economic
occupancy
level, %
Operating
net,
USD M
Yield on
carrying
amount, %
Yield on
market
value, %
Projected
rental value
fully leased,
USD M
Completed projects 712 712 939 227 356 89 45.0 3 6.7 5.1 89.7 5 6.6
Completed projects
in 2010 24 24 30 6 24 100 2.1 4 9.2 7.2 2.2 5 15.0
Ongoing projects 294 829 325 2 31 274 32 64.4 4 8.2 6.6 71.6 6 9.5
Totalt 1,030 1,565 1,295 265 654 111.4
Development properties 1 440 440 513 73
Total 1,470 2,005 1,808 338
1 “Development properties” refers to land with building rights for commercial use, totaling about 1,460,000 sq.m (15.7 million sq.ft.).
2 Accrued market value. Internal appraisal on each respective completion date. Estimated market value at completion totaled USD 1,036 M.
3 Estimated operating net before corporate and business area overhead in 2010 on annual basis assuming current occupancy rate.
4 Estimated operating net before corporate and business area overhead fully leased in year 1 when the properties are completed.
5 Total of contracted rents and estimated rent for unoccupied space.
6 Estimated rental value fully leased in year 1 when the property is completed.
Average
lease,
years
Skanska Review of 2010 – USD version Commercial Property Development 47