Annual Report 2011 - Skanska

AmerikaFördelningoutnyttjade United byggrätter StatesNorden Europa AmerikaFördelning uthyrbaryta pågående projektFördelning uthyrbaryta pågående projektuthyrbaryta pågående projektIn the United States, Skanska initiates and develops commercial property projects inselectedWashington D.C.,major41%cities, with a focus on office properties. Project operations are underway inHouston, 46%Sverige, 82%Polen, 75%Washington D.C., 35%• Washington, Boston, 13% D.C., Boston, Norge, 0%Houston and Seattle. Tjeckien, 12%Operations are in a start-up Houston, 52%phase.Finland, 13%• Ungern, 13%• Boston, 13%• Danmark, 5%Distribution unutilizedbuilding rightsWashington D.C., 41%Houston, 46%• Boston, 13%FördelningDistribution of leasableDistribution of leasablearea, Commercial ongoing Property projects Development in the United area, ongoing States projectsSEK M 2011 2010Revenue 5 –Operating income –57 –48of which gain on property divestments 1 – –Capital employed, SEK bn 1.7 0.4ReturnSweden,on capital82%employed % 2 Poland, 75%10.3 –Norway, 0%Czech Republic, 12%1 Additional gain included in eliminations was – –• Finland, 13%• Hungary, 13%2 Including unrealized development gains and changes in market value.• Denmark, 5% •Distribution of leasablearea, ongoing projectsCompetitorsWashington D.C., 35%Houston, 52%• Boston, 13%HinesTrammell CrowBoston PropertiesMajor eventsIn 2011, Skanska carried out its first investment inCambridge, Massachusetts, near Boston. The new property,a laboratory and office building, will be built to meetLEED Gold standards. The investment is expected to totalabout SEK 445 M.In November, Skanska decided to develop and constructa new office building in Houston, Texas. The investmentis expected to total about SEK 550 M. The property is precertifiedat the highest level, LEED Platinum. It will have28,000 square meters (302,000 sq. ft.) of space in20 stories, of which 12 will be office space.MarketThe market trend was predominantly positive in theselected cities where Skanska is operating. Rent levelsand vacancy rates were stable or falling slightly.EarningsThe portfolio in the U.S. market is in the start-up phase.No leasing revenue has thus been generated, and nodivestments were made during 2011.OutlookSkanska currently has four ongoing property projects inthe U.S. for its own account. The divestment of the firstproject is expected to occur during 2012.A showcase location in Washington, D.C.December 2011 marked Skanska’s debut in the Americancommercial property market. The address of its first suchproject is 733 10th Street in Washington, D.C. – onlyfour blocks from the White House and close to federaldepartments and regulatory agencies.A shiny 10-story cube totaling 18,800 square meters(202,000 sq. ft.) is now welcoming its first tenants.The project is the result of the Company’s collectivemuscle – its financial strength and its expertise indeveloping and constructing green office buildings.The building has achieved the second-highestenvironmental certification level, LEED Gold. Reducedenergy consumption, a green roof, ample natural lighting,at least 75 percent recycling of waste, carbondioxide sensors and separation of hazardous materialsare among the green features.“Both the location and design are superior. Ouremployees will be pleased with the efficient space andample daylight when we move in during April 2012,”says Rick Klein, CFO of the National Association ofManufacturers, which has leased much of the office space.The building will also house the public relations andlobbying group CMGRP and Sound Exchange, whichcollects royalties from digital media. On the ground floorare a restaurant and the original owner of the property,the First Congregational United Church of Christ, with ahistory going back to 1868 on this site.“We gained access to a first-class location. This green,functional office building is an excellent showcase for us,”says Rob Ward, Executive Vice President of SkanskaCommercial Property Development USA.62 Commercial Property Development Skanska Annual Report 2011