semi-annual report 30 Sep 2008 - SEB Asset Management

market conditions, given that factors such as high
contributions towards fit-out costs are standard on the
rental market.
The changes in value item include both changes in
value according to the expert opinions and other changes
in value, such as provisions for planned construction
measures. The return from changes in value was a positive
0.8 percentage points. A major factor in this development
was a new lease signed at much better conditions (+ 2.8%)
in Italy. The positive result in France (+ 1.1%) is also due to
successes in letting properties, which also had a significant
impact on the positive changes in the value of the equity
interests.
Income components of Fund return in %
Properties Germany Abroad
12 SEB ImmoInvest
Six-month period from Apr. 2008 to Sept. 2008 Twelve-month period from Oct. 2007 to Sept. 2008
Direct
acqui-
sitions
Abroad
Equity
interests
Total
abroad
Total Germany Abroad
Direct
acqui-
sitions
Abroad
Equity
interests
Gross income 1) 3.9 4.0 3.3 3.7 3.4 6.9 8.1 6.4 7.4 6.9
Management costs 1) – 1.3 – 0.8 – 0.5 – 0.7 – 0.8 – 1.8 – 2.4 – 1.3 – 1.9 – 1.8
Net income 1) 2.6 3.2 2.8 3.0 2.6 5.0 5.7 5.1 5.5 5.1
Changes in value 1) 0.3 0.9 2.1 1.4 0.8 – 0.1 1.6 4.5 2.8 1.8
Foreign income taxes 1) 0.0 – 0.3 – 0.3 – 0.3 – 0.2 0.0 – 0.4 – 0.6 – 0.5 – 0.3
Foreign deferred taxes 1) 0.0 – 0.1 0.0 – 0.1 0.0 0.0 – 0.3 0.0 – 0.2 – 0.1
Income before borrowing costs 1) 2.9 3.6 4.5 4.0 3.2 4.9 6.6 9.0 7.6 6.5
Income after borrowing costs 2) 2.9 4.3 6.0 5.0 3.5 4.9 7.5 12.0 9.3 7.0
Exchange rate differences 2) 3) 0.0 0.3 1.5 0.8 0.3 0.0 0.8 0.8 0.8 0.4
Total income in Fund currency 2) 4) 2.9 4.6 7.5 5.8 3.8 4.9 8.3 12.8 10.1 7.4
Liquidity 5) 6) – 0.7 0.6
Total Fund income before Fund costs 7) 2.7 5.3
Total Fund income after Fund costs (BVI method) 2.5 4.9
1) Based on average property assets
2) Based on the Fund’s average property assets financed by equity
3) Exchange rate differences include both changes in exchange rates and currency hedging costs.
4) Generated with a six-month average share of Fund assets financed by equity and invested in property of 76.1%, or 68.4% for twelve months
5) Based on the Fund’s average liquid assets
6) Generated with an average share of Fund assets invested in the liquidity portfolio of 23.9% over 6 months, or 31.6% over twelve months
7) Based on the average Fund assets
Foreign income taxes reduced the net rental return by
0.2 percentage points in the period under review.
Strategic external financing increased the total property
return. Income from properties contributed 3.5% of the
Fund return after borrowing costs. At present, the Fund’s
management uses external financing exclusively for foreign
properties. The average external debt ratio varies at the
country portfolio level from 0.0% (Germany, Austria and
Belgium) to 55.8% (USA).
The liquidity portfolio generated a negative return of 0.7%.
These figures result in an overall return of 2.7% before Fund
costs in the period under review.
Total
abroad
Note: The figures for the first half of the financial year (1 April 2008 – 30 September 2008) cannot be extrapolated to forecast the results for the year, as
transactions affecting earnings are not spread out evenly over the year. They are of limited informative value due to the short period under review.
Total